Document:

EX-10.3

 Exhibit 10.3 

ZYMEWORKS INC. 
 AMENDED
AND RESTATED STOCK OPTION AND EQUITY COMPENSATION PLAN 
 (as amended and restated through the Arrangement Effective Time) 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I INTERPRETATION
	  	 	1	 
			
	 Section 1.1
	 	 Definitions
	  	 	1	 
	 Section 1.2
	 	 Interpretation
	  	 	5	 
		
	 ARTICLE II GENERAL PROVISIONS
	  	 	6	 
			
	 Section 2.1
	 	 Administration
	  	 	6	 
	 Section 2.2
	 	 Shares Reserved
	  	 	6	 
	 Section 2.3
	 	 Amendment and Termination
	  	 	7	 
	 Section 2.4
	 	 Compliance with Legislation
	  	 	9	 
	 Section 2.5
	 	 Effective Time and Termination
	  	 	9	 
	 Section 2.6
	 	 Tax Withholdings and Deductions
	  	 	10	 
	 Section 2.7
	 	 Non-Transferability
	  	 	10	 
	 Section 2.8
	 	 Participation in this Plan
	  	 	11	 
	 Section 2.9
	 	 Notice
	  	 	11	 
	 Section 2.10
	 	 Right to Issue Other Shares
	  	 	12	 
	 Section 2.11
	 	 Quotation of Shares
	  	 	12	 
	 Section 2.12
	 	 No Fractional Shares
	  	 	12	 
	 Section 2.13
	 	 Governing Law
	  	 	12	 
		
	 ARTICLE III OPTIONS
	  	 	12	 
			
	 Section 3.1
	 	 Grant
	  	 	12	 
	 Section 3.2
	 	 Exercise Price
	  	 	13	 
	 Section 3.3
	 	 Vesting
	  	 	13	 
		
	 ARTICLE IV EXERCISE & EXPIRY & CHANGE OF CONTROL
	  	 	13	 
			
	 Section 4.1
	 	 Conditions of Exercise
	  	 	13	 
	 Section 4.2
	 	 Exercise Period
	  	 	14	 
	 Section 4.3
	 	 Termination Date
	  	 	15	 
	 Section 4.4
	 	 Change of Control
	  	 	18	 
		
	 ARTICLE V OTHER AWARDS
	  	 	19	 
			
	 Section 5.1
	 	 General
	  	 	19	 
	 Section 5.2
	 	 Restricted Stock
	  	 	20	 
	 Section 5.3
	 	 Restricted Stock Units
	  	 	20	 
	 Section 5.4
	 	 Other Share-Based Awards; Performance Vesting
	  	 	20	 

  
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 ARTICLE I 

INTERPRETATION 

Section 1.1    Definitions 

For the purposes of this Plan, the following terms shall have the following meanings: 

(a)    “Affiliate” or “Affiliated” means, with respect to any specified Person,
any other Person which directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, such specified Person (for the purposes of this definition, “control” (including, with
correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise); 

(b)    “Arrangement Effective Time” has the meaning given to that term in the Transaction Agreement. 

(c)    “Authorized Leave” means any leave of absence (paid or unpaid) approved in writing by the
Corporation for a period of more than four (4) weeks that occurs while the Participant continues to be employed as an employee by the Corporation or retained as a Consultant by the Corporation and includes any parental leave, short term
disability or other bona fide paid or unpaid leave of absence or sabbatical period; 
 (d)    “Award”
means a grant of an Option or of an Other Award hereunder. 
 (e)    “Board” means the board of
directors of the Corporation as constituted from time to time, or a committee thereof to which authority has been delegated by the board of directors with respect to any particular functions of the board of directors, as set forth in
Section 2.1(c) herein; 
 (f)    “Business Day” means a day, other than a Saturday or Sunday, on
which banking institutions in Vancouver, British Columbia are not authorized or obligated by law to close; 

(g)    “Change of Control” means the happening, in a single transaction or in a series of related
transactions, of any of the following events: 
 (i)    any transaction (other than a transaction
described in clause (ii) below) pursuant to which any person or group of persons acting jointly or in concert acquires the direct or indirect beneficial ownership of securities of the Corporation representing 50% or more of the aggregate voting
power of all of the Corporation’s then issued and outstanding securities entitled to vote in the election of directors of the Corporation; 

(ii)    there is consummated an arrangement, amalgamation, merger, consolidation or similar transaction
involving (directly or indirectly) the Corporation and, 

  
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immediately after the consummation of such arrangement, amalgamation, merger, consolidation or similar transaction, the shareholders of the Corporation immediately prior thereto do not
beneficially own, directly or indirectly, either (A) outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving or resulting entity in such arrangement, amalgamation, merger, consolidation
or similar transaction or (B) more than 50% of the combined outstanding voting power of the parent of the surviving or resulting entity in such arrangement, amalgamation, merger, consolidation or similar transaction, in each case in
substantially the same proportions as their beneficial ownership of the outstanding voting securities of the Corporation immediately prior to such transaction; 

(iii)    the sale, lease, exchange, license or other disposition of all or substantially all of the
Corporation’s assets to a person other than (A) a disposition to a Person that was an Affiliate of the Corporation at the time of such sale, lease, exchange, license or other disposition or (B) a sale, lease, exchange, license or
other disposition to an entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are beneficially owned by Shareholders of the Corporation in substantially the same proportions as their beneficial
ownership of the outstanding voting securities of the Corporation immediately prior to such sale, lease, exchange, license or other disposition; 

(iv)    the passing of a resolution by the Board or Shareholders to substantially liquidate the assets of
the Corporation or wind up the Corporation’s business or significantly rearrange its affairs in one or more transactions or series of transactions or the commencement of proceedings for such a liquidation,
winding-up or re-arrangement (except where such re-arrangement is part of a bona fide reorganization of the Corporation in
circumstances where the business of the Corporation is continued and the shareholdings remain substantially the same following the re-arrangement); 

(v)    individuals who, on the Effective Time, are members of the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a
majority vote of the members of the Incumbent Board then still in office, such new member will, for purposes of this Plan, be considered as a member of the Incumbent Board; or 

(vi)    any transaction, plan, scheme, reorganization or arrangement whereby an entity acquires, directly
or indirectly, greater than fifty percent (50%) of the Zymeworks Common Shares (as defined in the Transaction Agreement), such that upon the Arrangement Effective Time, the Corporation is a successor to Zymeworks (as defined in the Transaction
Agreement) under this Plan. For the avoidance of doubt, the addition of this clause (vi) is effective as of immediately prior to, and contingent upon, the Arrangement Effective Time. 

(h)    “Code” has the meaning given to that term in Appendix 1; 

(i)    “Consultant” means an individual (including an individual whose services are contracted through a
personal holding corporation) with whom the Corporation or any of its 

  
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subsidiaries has a contract for services who is approved for participation in the Plan by the Board and for whom there exists an exemption from applicable prospectus requirements permitting the
granting of an Award; provided that if Form S-8 under the Securities Act of 1933 is being used to register the sale of securities to the Consultant, the individual must meet the requirements of the definition
set forth in General Instruction A.1.(a)(1) of such form; 
 (j)    “Corporation” means Zymeworks Inc.,
a Delaware corporation, and its respective successors and assigns; 
 (k)    “Date of Grant” means the
date on which a particular Award is granted by the Board as evidenced by the Grant Agreement pursuant to which the particular Award was granted; 

(l)    “Effective Time” has the meaning given to that term in Section 2.5; 

(m)    “Eligible Person” means any director, officer, employee or Consultant of the Corporation or any of
its direct or indirect subsidiaries; 
 (n)    “Exercise Notice” means an election to exercise Options
granted to a Participant under this Plan, in the case of Options substantially in the form attached as Exhibit “B” to the Grant Agreement, as may be amended from time to time by the Corporation; 

(o)    “Exercise Period” means the period from the Vesting Date to the close of business on the Expiry
Date during which a particular Option may be exercised in the manner described in Section 4.1 in the case of Options; 

(p)    “Exercise Price” has the meaning given to that term in Section 3.2; 

(q)    “Expire” means, with respect to an Option or Legacy Option, the termination of such Option or
Legacy Option, on the occurrence of which such Option or Legacy Option is void, incapable of exercise and of no value whatsoever; and Expires, Expired and Expiry have a similar meaning; 

(r)    “Expiry Date” means the date on which an Option Expires; 

(s)    “Fair Market Value” means, on any particular day, the Market Price of a Share, but if the Shares
are not listed and posted for trading on an applicable stock exchange at the relevant time, it shall be the fair market value of the Share, as determined by the Board acting in good faith; 

(t)    “Grant Agreement” means an agreement between the Corporation and a Participant under which an
Award is granted, in the case of Options substantially in the form attached hereto as Schedule “A”, as may be amended from time to time by the Corporation; 

(u)    “Incapacity” has the meaning given to that term in Section 4.3(c); 

(v)    “Incumbent Board” has the meaning given to that term in Section 1.1(e); 

  
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 (w)    “Legacy Option” means an option to purchase a
Share that was granted pursuant to the terms of the Legacy Option Plan; 
 (x)    “Legacy Option Plan”
means the Corporation’s Employee Stock Option Plan, as may be amended from time to time; 
 (y)    “Market
Price” means, on any particular day, closing sale price of a Share on the Primary Stock Exchange for such day (or, if such day is not a trading day), the closing sale price reported for the immediately preceding trading day. Notwithstanding
the foregoing, the Corporation may convert a Market Price denominated in United States currency to Canadian currency, or vice-versa, at the Bank of Canada daily average exchange rate on the day prior to the particular day, and the converted amount
shall be the Market Price; 
 (z)    “Non-Executive Director”
means any director of the Corporation who is not an employee or officer of the Corporation or any Affiliate; 

(aa)    “NYSE” means the New York Stock Exchange; 

(bb)    “Option” means an option to purchase a Share that is granted to an Eligible Person pursuant to
the terms of this Plan; 
 (cc)    “Other Award” means an Award granted under Article 5 hereof. 

(dd)    “Participant” means an Eligible Person to whom an Award has been granted; 

(ee)    “Person” means any individual, partnership, corporation, company, association, trust, joint
venture, limited liability company, unincorporated organization, entity or division or any government, governmental department or agency or political subdivision thereof; 

(ff)    “Plan” means this Zymeworks Inc. Amended and Restated Stock Option and Equity Compensation Plan,
originally effective June 7, 2018, as amended through the Arrangement Effective Time and as it may be further amended from time to time; 

(gg)    “Primary Stock Exchange” means a Stock Exchange where the majority of the trading volume and
value of the Shares has occurred for the five (5) trading days immediately preceding the relevant date; 

(hh)    “Share” means a share of common stock of the Corporation; 

(ii)    “Share Compensation Arrangement” means any stock option, stock option plan, employee stock
purchase plan, long-term incentive plan or any other compensation or incentive mechanism of the Corporation involving the issuance or potential issuance of securities of the Corporation from treasury, including without limitation a Share purchase
from treasury which is financially assisted by the Corporation by way of a loan, guarantee or otherwise, but does not include any such arrangement which does not involve the issuance from treasury or potential issuance from treasury of securities of
the Corporation; 

  
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 (jj)    “Shareholders” means holders of Shares; 

(kk)    “Stock Exchange” means the NYSE and, if the Shares are listed and posted for trading on another
stock exchange, the stock exchange(s) on which the Shares are listed or posted for trading; 

(ll)    “Surrender” has the meaning given to that term in Section 4.1(c); 

(mm)    “Surrender Notice” has the meaning given to that term in Section 4.1(c); 

(nn)    “Termination Date” has the meaning given to that term in Section 4.3(c); 

(oo)    “Transaction Agreement” means the Restated and Amended Transaction Agreement dated
August 18, 2022 by and among the Corporation (then-referred to as Zymeworks Delaware Inc.), Zymeworks Inc., a company then-existing under the Business Corporations Act (British Columbia), Zymeworks Callco ULC, and Zymeworks ExchangeCo Ltd.
as the same may be amended, modified or supplemented from time to time in accordance therewith, prior to the Arrangement Effective Time; and 

(pp)    “Vesting Date” means the date or dates determined in accordance with the terms of the Grant
Agreement entered into in respect of such Award (with respect to Options as described in Section 3.3), on and after which a particular Award, or any part thereof, becomes non-forfeitable and/or may be
exercised (as the case may be), subject to amendment or acceleration from time to time in accordance with the terms hereof or the terms of the Grant Agreement. 

Section 1.2    Interpretation 

(a)    Whenever the Board is to exercise discretion or authority in the administration of the terms and conditions of this
Plan, the term “discretion” or “authority” means the sole and absolute discretion of the Board. 

(b)    In the Plan, words importing the singular shall include the plural and vice versa and words importing any gender
include any other gender. 
 (c)    Unless otherwise specified in the Participant’s Grant Agreement, all references
to money amounts are to (x) with respect to Awards granted prior to the Arrangement Effective Time, Canadian currency, and (y) with respect to Awards granted on or after the Arrangement Effective Time, U.S. dollars. 

(d)    As used herein, the terms “Article” and “Section” mean and refer to the specified Article and
Section of this Plan, respectively. 
 (e)    The words “including” and “includes” mean
“including (or includes) without limitation”. 

  
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 ARTICLE II 

GENERAL PROVISIONS 

Section 2.1    Administration 

(a)    The Board shall administer this Plan. Nothing contained herein shall prevent the Board from adopting other or
additional Share Compensation Arrangements or other compensation arrangements. 
 (b)    Subject to the terms and
conditions set forth herein, the Board has the authority: (i) to grant Awards to Eligible Persons; (ii) to determine the terms, including the limitations, restrictions, vesting period and conditions, if any, of such grants; (iii) to
interpret this Plan and all agreements entered into hereunder; (iv) to adopt, amend and rescind such administrative guidelines and other rules relating to this Plan as it may from time to time deem advisable; and (v) to make all other
determinations and to take all other actions in connection with the implementation and administration of this Plan as it may deem necessary or advisable. The Board’s guidelines, rules, interpretations and determinations shall be conclusive and
binding upon the Corporation, its subsidiaries and all Participants, Eligible Persons and their legal, personal representatives and beneficiaries. 

(c)    Notwithstanding the foregoing or any other provision contained herein, the Board shall have the right to delegate
the administration and operation of this Plan, in whole or in part, to a committee thereof. For greater certainty, any such delegation by the Board may be revoked or amended at any time at the Board’s sole discretion. 

(d)    No member of the Board or any person acting pursuant to authority delegated by it hereunder shall be liable for any
action or determination in connection with the Plan made or taken in good faith and each member of the Board and each such person shall be entitled to indemnification by the Corporation with respect to any such action or determination. 

(e)    The Board may adopt such rules or regulations and vary the terms of this Plan and any grant hereunder as it
considers necessary to address tax or other requirements of any applicable U.S. or non-U.S. jurisdiction. 

(f)    The Plan shall not in any way fetter, limit, obligate, restrict or constrain the Board with regard to the allotment
or issue of any Shares or any other securities in the capital of the Corporation other than as specifically provided for in the Plan. 

Section 2.2    Shares Reserved 

(a)    Subject to the other provisions of this Section 2.2, the maximum number of Shares that may be delivered
pursuant to Awards granted under the Plan shall be 5,686,097 (which includes 3,686,097 Shares issuable upon exercise of Options outstanding as of March 31, 2018), which maximum number shall be increased on the first day of each calendar year
beginning in calendar year 2019 and ending in calendar year 2028 by a number of Shares equal to 4.0% of the number of outstanding Shares on the last day of the immediately preceding calendar year (or such lesser number of Shares as the Board may
determine prior to the commencement of the applicable calendar year). 

  
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 (b)    For the purposes of calculating the maximum aggregate number of
Shares which may be delivered under this Plan pursuant to Section 2.2(a), following the Expiry, cancellation or other termination of any Awards under this Plan and the Legacy Options under the Legacy Option Plan, a number of Shares equal to the
number of shares subject to such Awards or Legacy Options so Expired, cancelled or terminated shall immediately and automatically become available for issuance in respect of Awards that may be subsequently granted under this Plan. 

(c)    The Corporation shall at all times reserve for issuance and keep available such number of Shares as shall be
sufficient to satisfy the requirements of this Plan. 
 (d)    [Reserved] 

(e)    If there is a change in the outstanding Shares by reason of any stock dividend or split, or in connection with a
reclassification, reorganization or other change of Shares, consolidation, distribution (other than an ordinary course dividend in cash or Shares, but including for greater certainty shares or equity interests in a subsidiary or business unit of the
Corporation or one of its subsidiaries or cash proceeds of the disposition of such a subsidiary or business unit), merger or amalgamation or similar corporate transaction, the Board shall make, subject to any required approval of the Stock Exchange,
the appropriate substitution or adjustment in order to maintain the Participants’ economic rights in respect of their Awards in connection with such change, including without limitation: 

(i)    adjustments to the Exercise Price without any change in the total price applicable to the
unexercised portion of the Option, but with a corresponding adjustment in the price for each Share covered by the Option; 

(ii)    adjustments to the number of Shares to which a Participant is entitled upon exercise or vesting of
an Award; 
 (iii)    adjustments permitting the immediate exercise of any outstanding Options that are
not otherwise exercisable or the immediate vesting of Other Awards; and 
 (iv)    adjustments to the
number or kind of Shares or other securities reserved for issuance pursuant to the Plan and to the number or kind of Shares or other securities or other property issuable upon the exercise or vesting of Awards. 

Section 2.3    Amendment and Termination 

(a)    The Board may, in its sole discretion, suspend or terminate the Plan at any time or from time to time and/or amend
or revise the terms of the Plan or of any Award granted under the Plan and any Grant Agreement relating thereto, provided that such suspension, termination, amendment or revision shall: 

(i)    not adversely alter or impair any Award previously granted except as permitted by the terms of this
Plan; 

  
 7 

 (ii)    be in compliance with applicable law and subject
to any regulatory approvals including, where required, the approval of the Stock Exchange; or 

(iii)    be subject to Shareholder approval, where required by law, the requirements of the Stock Exchange
or this Plan. 
 (b)    If the Plan is terminated, the provisions of the Plan and any administrative guidelines and
other rules and regulations adopted by the Board and in force with respect to outstanding Awards will continue in effect as long as any such Award or any rights pursuant thereto remain outstanding and, notwithstanding the termination of the Plan,
the Board will remain able to make such interpretations and amendments to the Plan or the Awards as they would have been entitled to make if the Plan were still in effect. 

(c)    Subject to Section 2.3(a), the Board may from time to time, in its discretion and without the approval of
Shareholders, make changes to the Plan or any Award that do not require the approval of Shareholders under Section 2.3(d), which may include but are not limited to: 

(i)    any amendment of a “housekeeping” nature, including without limitation those made to
clarify the meaning of an existing provision of the Plan, correct or supplement any provision of the Plan that is inconsistent with any other provision of the Plan, correct any grammatical or typographical errors or amend the definitions in the Plan
regarding administration of the Plan; 
 (ii)    a change to the vesting provisions of the Plan or any
Award; 
 (iii)    a change to the provisions governing assignability and the effect of termination of a
Participant’s employment, contract or office; 
 (iv)    the addition of a form of financial
assistance and any amendment to a financial assistance provision which is adopted; 
 (v)    a change to
advance the date on which any Option may be exercised under the Plan; and 
 (vi)    an amendment of the
Plan or an Award as necessary to comply with applicable law or the requirements of the Stock Exchange or any other regulatory body having authority over the Corporation, the Plan, the Participants or the Shareholders. 

(d)    Shareholder approval is required for the following amendments to the Plan: 

(i)    any increase in the maximum number of Shares that may be issuable from treasury pursuant to Awards
granted under the Plan (as set out in Section 2.2), other than an adjustment pursuant to Section 2.2(e); 

(ii)    any reduction in the Exercise Price of an Option after the Option has been granted or any
cancellation of such Option and the substitution of that Option with a new Option with a reduced Exercise Price, except in the case of an adjustment pursuant to Section 2.2(e); 

  
 8 

 (iii)    any extension of the maximum Expiry Date of an
Option, except in case of an extension due to a black-out period; 

(iv)    a change to the definition of Eligible Persons; 

(v)    the addition of a deferred or performance share unit or any other provision which results in
Participants receiving securities while no cash consideration is received by the Corporation; and 

(vi)    any amendment to Section 2.3(c) and Section 2.3(d). 

Section 2.4    Compliance with Legislation 

(a)    The Plan (including any amendments thereto), the terms of the grant of any Award under the Plan, the grant and
exercise of any Award and the Corporation’s obligation to sell and deliver Shares upon the vesting or exercise of any Award, shall be subject to all applicable U.S. and non-U.S. federal, provincial, state
and local laws, rules and regulations, the rules and regulations of the Stock Exchange and any other stock exchange on which the Shares are listed or posted for trading and to such approvals by any regulatory or governmental agency as may, in the
opinion of counsel to the Corporation, be required. The Corporation shall not be obliged by any provision of the Plan or the grant of any Award hereunder to issue or sell Shares in violation of such laws, rules and regulations or any condition of
such approvals. 
 (b)    No Award shall be granted, and no Shares shall be issued or sold hereunder, where such grant,
issue or sale would require registration of the Plan or of Shares under the securities laws of any non-U.S./non-Canadian jurisdiction, and any purported grant of any
Award or purported issue or sale of Shares hereunder in violation of this provision shall be void. 
 (c)    The
Corporation shall have no obligation to issue any Shares pursuant to this Plan unless upon official notice of issuance such Shares shall have been duly listed with the Stock Exchange (and any other stock exchange on which the Shares are listed or
posted for trading). Shares issued and sold to Participants pursuant to the exercise or vesting of Awards may be subject to limitations on sale or resale under applicable securities laws. 

(d)    If Shares cannot be issued to a Participant upon the exercise or vesting of an Award due to legal or regulatory
restrictions, the obligation of the Corporation to issue such Shares shall terminate and any funds paid to the Corporation in connection with the exercise of an Option will be returned to the applicable Participant as soon as practicable. 

Section 2.5    Effective Time and Termination 

The amendment and restatement of the Plan was effective at the time (the “Effective Time”) it was approved by the shareholders
of Zymeworks. No Awards may be issued under the Plan from and after the tenth anniversary of the Effective Time, provided that Awards issued prior to such date shall remain in effect following such date in accordance with their terms. The

  
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amendment and restatement through the Arrangement Effective Date is effective as of, and contingent upon, the Arrangement Effective Time, except that the changes to Section 1.1(g)(vi) are
effective as of immediately prior to, and contingent upon, the Arrangement Effective Time. 
 Section 2.6    Tax
Withholdings and Deductions 
 The Corporation shall have the authority and the right to deduct or withhold from any amount otherwise
payable to a Participant, or require a Participant to remit to the Corporation, an amount sufficient for the Corporation to be able to comply with the applicable provisions of any U.S. or non-U.S. federal,
provincial, state or local law relating to the withholding of tax or other required deductions (“Tax Obligations”) arising as a result of any Award. Notwithstanding any other provision contained herein, the delivery of Shares with
respect to any Award granted under this Plan is subject to the condition that if at any time the Corporation determines, in its discretion, that the satisfaction of the Tax Obligations is necessary or desirable in respect of such delivery, such
delivery is not required unless provision for the Tax Obligation has been made to the satisfaction of the Corporation. In such circumstances, the Corporation may require that a Participant pay to the Corporation, in addition to the Exercise Price
for the Shares (if applicable), such amount as the Corporation is obliged to remit to the relevant taxing authority in respect of the Award. Any such additional payment is due no later than the date as of which any amount with respect to the Award
first becomes includable in the gross income of the Participant for tax purposes. To the extent permitted by the Board, a Participant may direct a portion of the Shares acquired to be sold by a broker to satisfy the Tax Obligations and the funds
from such sale to be paid to the Corporation to be remitted to the relevant taxing authority. 
 Section 2.7    Non-Transferability 
 Except as set forth herein, Awards are not transferable. Options may be
exercised only by: 
 (a)    the Participant to whom the Options were granted; 

(b)    with the Board’s prior written approval and subject to such conditions as the Corporation may stipulate (which
may include conditions with respect to compliance with applicable securities law), such Participant’s family or retirement savings trust or any registered retirement savings plans or registered retirement income funds of which the Participant
is and remains the annuitant; 
 (c)    upon the Participant’s death, by the legal representative of the
Participant’s estate; or 
 (d)    upon the Participant’s Incapacity, the legal representative having
authority to deal with the property of the Participant; 
 provided that any such legal representative shall first deliver evidence satisfactory to the
Corporation of entitlement to exercise any Option. A person exercising an Option may subscribe for Shares only in the person’s own name or in the person’s capacity as a legal representative. 

  
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 Section 2.8    Participation in this Plan 

(a)    No Participant has any claim or right to be granted an Award (including, without limitation, an Award granted in
substitution for any Award that has expired pursuant to the terms of this Plan), and the granting of any Award does not and is not to be construed as giving a Participant a right to continued employment or to remain a Consultant, director, officer
or employee, as the case may be, of the Corporation or an Affiliate of the Corporation. Nothing contained in this Plan or in any Award granted under this Plan shall interfere in any way with the rights of the Corporation or an Affiliate of the
Corporation in connection with the employment, retention or termination of any such person. 
 (b)    No Participant has
any rights or privileges as a shareholder of the Corporation in respect of Shares with respect to any Award until the allotment and issuance to the Participant of certificates representing such Shares or the entry of such Participant’s name on
the share register of the Corporation as the holder of Shares and that person becomes the holder of record of those Shares. The Participant or the Participant’s legal representative shall not, by reason of the grant of any Award (other than an
Award of Restricted Stock as set forth in Article 5), be considered to be a shareholder of the Corporation until shares have been issued in respect thereof. 

(c)    The Corporation makes no representation or warranty as to the future market value of the Shares or with respect to
any income tax matters affecting the Participant resulting from the grant, vesting or delivery of an Award or transactions in the Shares. With respect to any fluctuations in the market price of Shares, neither the Corporation, nor any of its
directors, officers, employees, shareholders or agents shall be liable for anything done or omitted to be done by such person or any other person with respect to the price, time, quantity or other conditions and circumstances of the issuance of
Shares hereunder or in any other manner related to the Plan. For greater certainty, no amount will be paid to, or in respect of, a Participant under the Plan or pursuant to any other arrangement, and no additional Awards will be granted to such
Participant to compensate for a downward fluctuation in the price of the Shares, nor will any other form of benefit be conferred upon, or in respect of, a Participant for such purpose. The Corporation does not assume responsibility for the income or
other tax consequences resulting to the Participant and they are advised to consult with their own tax advisors. 

Section 2.9    Notice 

Each notice relating to an Award, including the exercise of an Option, must be in writing. All notices to the Corporation must be delivered
personally, by prepaid registered mail or by email and must be addressed to the secretary of the Corporation. All notices to the Participant will be addressed to the principal address of the Participant on file with the Corporation. Either the
Corporation or the Participant may designate a different address by written notice to the other. Such notices are deemed to be received: (i) if delivered personally, on the date of delivery; (ii) if sent by prepaid, registered mail, on the
fifth Business Day following the date of mailing; or (iii) if sent by email, when the sender receives an email from the recipient acknowledging receipt, provided that an automatic “read receipt” does not constitute acknowledgment of
an email for purposes hereof. Any notice given by either the Participant or the Corporation is not binding on the recipient thereof until received. 

  
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 Section 2.10    Right to Issue Other Shares 

The Corporation shall not by virtue of this Plan be in any way restricted from declaring and paying stock dividends, issuing further Shares,
repurchasing Shares or varying or amending its share capital or corporate structure. 

Section 2.11    Quotation of Shares 

So long as the Shares are listed on a Stock Exchange, the Corporation must apply to the Stock Exchange for the listing or quotation, as
applicable, of the Shares issued upon the exercise or delivery of all Awards granted under the Plan, however, the Corporation cannot guarantee that such Shares will be listed or quoted on the Stock Exchange or any other stock exchange. 

Section 2.12    No Fractional Shares 

No fractional Shares shall be issued upon the exercise or delivery of any Award granted under the Plan and, accordingly, if a Participant would
become entitled to a fractional Share upon the exercise or delivery of an Award, or from an adjustment permitted by the terms of this Plan, such Participant shall only have the right to purchase or receive the next lowest whole number of Shares, and
no payment or other adjustment will be made with respect to the fractional interest so disregarded. 

Section 2.13    Governing Law 

With respect to Awards granted prior to the Arrangement Effective Time, the Plan shall be governed by the laws of the Province of British
Columbia and the federal laws of Canada applicable therein. With respect to Awards granted on or after the Arrangement Effective Time, the Plan shall be governed by the laws of the State of Delaware, without giving effect to the principles of
conflicts of law thereof and the federal laws of the United States applicable therein, without giving effect to the principles of conflicts of law thereof. 

ARTICLE III 

OPTIONS 

Section 3.1    Grant 

(a)    Subject to the provisions of this Plan, the Board may grant Options to any Eligible Person upon the terms,
conditions and limitations set forth herein or such other terms, conditions and limitations as the Board may determine and set forth in the Grant Agreement; provided that no Option in respect of which Shareholder approval is required under the rules
of the Stock Exchange is granted until the time that such grant has been approved by the Shareholders. 
 (b)    An
Option shall be evidenced by a Grant Agreement, signed on behalf of the Corporation. 
 (c)    The grant of an Option
to, or the exercise of an Option by, a Participant under the Plan shall neither entitle such Participant to receive nor preclude such Participant from receiving subsequently granted Options. 

  
 12 

 Section 3.2    Exercise Price 

An Option may be exercised at a price that shall be fixed by the Board at the time that the Option is granted, but in no event shall it be less
than the Fair Market Value of the Shares on the Date of Grant (the “Exercise Price”). The Exercise Price shall be subject to adjustment in accordance with the provisions of Section 2.2(e) hereof. 

Section 3.3    Vesting 

(a)    All Options granted hereunder shall vest in accordance with the terms of the Grant Agreement entered into in respect
of such Options. The Board has the right to accelerate the date upon which any Option becomes exercisable notwithstanding the vesting schedule set forth for such Option, regardless of any adverse or potentially adverse tax consequences resulting
from such acceleration. 
 (b)    Notwithstanding any other provision of the Plan, unless otherwise approved by the
Board, the vesting of any Options granted hereunder shall be suspended and postponed during any period of Authorized Leave and, upon a Participant’s return from such Authorized Leave, the vesting of such Options shall be extended by a period
equivalent to such period of Authorized Leave provided that any such extension will not extend the Expiry Date of the option. Notwithstanding the foregoing, upon a Participant’s return from an Authorized Leave that was a parental leave, the
rate of vesting of such Participant’s Options shall be accelerated to twice the rate provided for in the Participant’s Grant Agreement until such time as the Participant holds vested Options in accordance with the original schedule of
Vesting Dates provided for in the Participant’s Grant Agreement. For certainty, nothing contained herein shall limit the effect of Section 4.3 of the Plan upon the termination of any Participant’s employment or service as a
Consultant, and the calculation of the number of Options vested as of a Participant’s Termination Date for purposes thereof shall take into account any suspension, postponement or adjustment of the vesting schedule applicable to such Options
contemplated by this Section 3.3 (b). 
 ARTICLE IV 

EXERCISE & EXPIRY & CHANGE OF CONTROL 

Section 4.1    Conditions of Exercise 

(a)    Vested Options may only be exercised during the Exercise Period by the Participant or upon the Participant’s
death or Incapacity, his or her legal representative (provided that such legal representative shall first deliver evidence satisfactory to the Corporation of entitlement to exercise such vested Options). Subject to the restrictions set out in this
Plan and to any alternative exercise procedure which may be established from time to time by the Board, Options to acquire Shares may be exercised by delivering to the Corporation an Exercise Notice, together with a bank draft, certified cheque or
other form of payment acceptable to the Corporation in an amount equal to the aggregate Exercise Price of the Shares to be purchased pursuant to the exercise of the Options and, if required by Section 2.6, the amount necessary to satisfy any
source deductions or withholding taxes. 

  
 13 

 (b)    Pursuant to the Exercise Notice, a Participant may choose to
undertake a “cashless exercise” with the assistance of a broker in order to facilitate the exercise of such Participant’s Options. The “cashless exercise” procedure may include a sale of such number of Shares as is necessary
to raise an amount equal to the aggregate Exercise Price for all Options being exercised by that Participant under an Exercise Notice. The Participant shall also comply with Section 2.6 of this Plan with regards to any applicable withholding
tax and shall comply with all such other procedures and policies as the Corporation may prescribe or determine to be necessary or advisable from time to time in connection with such “cashless exercise.” 

(c)    In addition, in lieu of exercising any vested Option in the manner described in this Article 4, and pursuant to the
terms of this Article 4, a Participant may provide a properly endorsed notice of surrender to the Secretary of the Corporation, substantially in the form of Exhibit “C” to the Grant Agreement (a “Surrender Notice”)
pursuant to which the Participant agrees to transfer, dispose and surrender an Option (“Surrender”) to the Corporation and elects to receive that number of Shares calculated using the following formula, after deduction of any income
tax and other amounts required by law to be withheld pursuant to Section 2.6: 
 X = Y * (A-B) / A 

Where: 
 X = the number of Shares to be issued to the
Participant 
 Y = the number of Shares underlying the Options to be Surrendered 

A = the Fair Market Value of the Shares as at the date of the Surrender 

B = the Exercise Price of such Options 
 The decision of
whether or not to permit Surrender for any Option is at the sole discretion of the Corporation and will be made on a case by case basis. 

(d)    Where Shares are to be issued to the Participant pursuant to the terms of this Section 4.1, as soon as
practicable following the receipt of the Exercise Notice and, if Options are exercised only in accordance with the terms of Section 4.1(a), the required bank draft, certified cheque or other acceptable form of payment, the Corporation shall
duly issue such Shares to the Participant as fully paid and non-assessable. 

Section 4.2    Exercise Period 

(a)    The Exercise Period shall be determined by the Board in its sole and absolute discretion at the time the Option is
granted and: 
 (i)    each Option shall Expire not later than ten (10) years after the Date of
Grant; 

  
 14 

 (ii)    unless otherwise provided in the
Participant’s Grant Agreement, the Exercise Period shall be automatically reduced or the Expiry Date postponed in accordance with this Article 4 upon the occurrence of any of the events referred to herein; and 

(iii)    unless otherwise provided in the Participant’s Grant Agreement, no Option in respect of which
Shareholder approval is required under the rules of the Stock Exchange shall be exercisable until the time that such Option has been approved by the Shareholders. 

(b)    Notwithstanding any other provision of the Plan, if the Expiry Date of an Option falls on a date upon which such
Participant is prohibited from exercising such Option due to a blackout period or other trading restriction imposed by the Corporation, then the Expiry Date of such Option shall be automatically extended to the tenth (10th) Business Day following
the date the relevant black-out period or other trading restriction imposed by the Corporation is lifted, terminated or removed; provided, however, that notwithstanding the foregoing, the Expiry Date of an
Option shall in no case extend beyond the tenth (10th) anniversary of the date on which it is granted. 

Section 4.3    Termination Date 

(a)    Subject to Section 4.2, unless otherwise provided in the Participant’s Grant Agreement, employment
agreement or consulting agreement: 
 (i)    if, at any time, a Participant ceases to be an employee of
the Corporation or a subsidiary as a result of the Participant’s retirement with the concurrence of the Board, any Options granted to such Participant and vested as of the Termination Date (as defined below) shall remain exercisable by such
Participant until the earlier of: (i) 90 days following the Termination Date; and (ii) the Expiry Date. As of the Termination Date, all unvested Options of such Participant shall Expire and such Participant shall no longer be eligible for a
grant of Options; 
 (ii)    if, at any time, a Participant ceases to be an employee of the Corporation
or a subsidiary as a result of the Participant’s death or Incapacity, any Options granted to such Participant and vested as of the Termination Date shall remain exercisable by such Participant (or, in accordance with Section 2.7, the
Participant’s legal representative) until the earlier of: (i) one year following the date of death or the date on which the Board determines that the Incapacity will prevent the employee from fulfilling his or her duties with the
Corporation; and (ii) the Expiry Date. As of the Termination Date, all unvested Options of such Participant shall Expire; 

(iii)    if, at any time, a Participant ceases to be an employee of the Corporation or a subsidiary as a
result of the Participant’s termination for cause, as determined by the Board, in its discretion, then, as of the Termination Date, the vested and unvested Options granted to such Participant shall Expire and be of no further force or effect
whatsoever and such Participant shall no longer be eligible for a grant of Options; 
 (iv)    if, at any
time, a Participant ceases to be an employee of the Corporation or a subsidiary as a result of the Participant’s resignation, then any Options 

  
 15 

 
granted to such Participant and vested as of the Termination Date shall remain exercisable by such Participant until the earlier of: (i) 90 days following the Termination Date; and (ii) the
Expiry Date. As of the Termination Date, all unvested Options granted to such Participant shall Expire and be of no further force or effect whatsoever and such Participant shall no longer be eligible for a grant of Options; 

(v)    if, at any time, a Participant ceases to be an employee of the Corporation or a subsidiary as a
result of the Participant’s dismissal without cause, any Options granted to such Participant and vested as of the Termination Date shall remain exercisable by such Participant until the earlier of: (i) ninety (90) days following the
Termination Date; and (ii) the Expiry Date. As of the Termination Date, all unvested Options of such Participant shall Expire (for certainty, without regard to any period of reasonable notice that the Corporation or a subsidiary, as the case
may be, may be required at law to provide to the Participant) and such Participant shall no longer be eligible for a grant of Options; 

(vi)    where, in the case of a Consultant, the Participant’s consulting agreement or arrangement
terminates by reason of: (i) termination by the Corporation or an Affiliate for any reason whatsoever other than for material breach of the consulting agreement or arrangement (whether or not such termination is effected in compliance with any
termination provisions contained in the Participant’s consulting agreement or arrangement); or (ii) voluntary termination by the Participant, then any Options held by the Participant that are exercisable at the Termination Date continue to
be exercisable by the Participant until the earlier of: (A) the date that is ninety (90) days from the Termination Date; and (B) the Expiry Date. Any Options held by the Participant that are not exercisable at the Termination Date
immediately expire and are cancelled on such date; 
 (vii)    where, in the case of a Consultant, the
Participant’s consulting agreement or arrangement terminates by reason of the death or Incapacity of the Participant, then any Options held by the Participant that are exercisable at the date of the death or Incapacity of the Participant
continue to be exercisable by the Participant (or, in accordance with Section 2.7, the Participant’s legal representative) until the earlier of: (i) the date that is one year from the date of the death or Incapacity of the
Participant; and (ii) the Expiry Date. Any Options held by the Participant that are not exercisable at the date of the death or Incapacity of the Participant immediately expire and are cancelled on such date; 

(viii)    where, in the case of a Consultant, the Participant’s consulting agreement or arrangement is
terminated by the Corporation or an Affiliate for material breach of the consulting agreement or arrangement (whether or not such termination is effected in compliance with any termination provisions contained in the Participant’s consulting
agreement or arrangement), as determined by the Board, in its discretion, then any Options held by the Participant, whether or not such Options are exercisable at the Termination Date, immediately expire and are cancelled on the Termination Date at
a time determined by the Board, in its discretion; 

  
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 (ix)    if, at any time, a Participant ceases to be a
director, officer or member of an advisory board of the Corporation or a subsidiary (and is not or does not continue as an employee or consultant of the Corporation or a subsidiary) for a reason other than the death or Incapacity of the Participant,
the Options granted to such Participant and vested as of the Termination Date may be exercised by such Participant until the earlier of: (i) ninety (90) days following the Termination Date; and (ii) the Expiry Date. As of the Termination
Date, all unvested Options granted to such Participant shall cease and terminate and be of no further force or effect whatsoever; 

(x)    if, at any time, a Participant ceases to be a director, officer or member of an advisory board of
the Corporation or a subsidiary (and is not or does not continue as an employee or consultant of the Corporation or a subsidiary) as a result of the Participant’s death or Incapacity, any Options granted to such Participant and vested as of the
Termination Date shall remain exercisable by such Participant (or, in accordance with Section 2.7, the Participant’s legal representative) until the earlier of: (i) the date that is one year from the date of the death or Incapacity of
the Participant; and (ii) the Expiry Date. As of the Termination Date, all unvested Options granted to such Participant shall cease and terminate and be of no further force or effect whatsoever; and 

(xi)    if, at any time, a Participant who is a Non-Executive
Director, ceases to be a director of the Corporation or a subsidiary for a reason other than the death or Incapacity of the Participant, the Options granted to such Participant and vested as of the Termination Date may be exercised by such
Participant until the earlier of: (i) the date that is one year from the Termination Date; and (ii) the Expiry Date. As of the Termination Date, all unvested Options of such Participant shall Expire and such Participant shall no longer be
eligible for a grant of Options. 
 (b)    Notwithstanding any other provisions of this Section 4.3, the Board may
extend the expiration date of vested and unvested Options of a Participant beyond the Expiry Dates set out above, provided that such extended dates are not later than the initial assigned maximum Expiry Date of any such Option. 

(c)    For purposes of the foregoing: 

“Incapacity” means the permanent and total incapacity of a Participant as determined in accordance with
procedures established by the Board for purposes of this Plan; and 
 “Termination Date” means: 

(i)    in the case of a Participant whose employment or term of office with the Corporation or a subsidiary
terminates in the circumstances set out in Section 4.3, the date that is designated by the Corporation or a subsidiary, as the case may be, as the last day of the Participant’s employment or term of office with the Corporation or a
subsidiary, as the case may be, provided that in the case of termination of employment by voluntary resignation by the Participant, such date shall not be earlier than the date notice of resignation was given, and, in the case of a termination by
the Corporation without cause, 

  
 17 

 
“Termination Date” specifically does not mean the date on which any period of reasonable notice that the Corporation or a subsidiary, as the case may be, may be required at law to
provide to the Participant, would expire; and 
 (ii)    in the case of a Participant who is a Consultant
and whose consulting agreement or arrangement with the Corporation or a subsidiary, as the case may be, terminates in the circumstances set out in Section 4.3, the date that is designated by the Corporation or a subsidiary, as the case may be,
as the date on which the Participant’s consulting agreement or arrangement is terminated, provided that in the case of voluntary termination by the Participant, such date shall not be earlier than the date notice of voluntary termination was
received by the Corporation, and, in the case of a termination by the Corporation without cause, “Termination Date” specifically does not mean the date on which any period of notice of termination that the Corporation or a subsidiary, as
the case may be, may be required to provide to the Participant under the terms of the consulting agreement or arrangement, would expire. 

Section 4.4    Change of Control 

(a)    Notwithstanding anything else in this Plan or any Grant Agreement, the Board has the right to provide for the
conversion or exchange of any outstanding Awards into or for options, rights or other securities in any entity participating in or resulting from a Change of Control, cash or other property. 

(b)    Upon the Corporation entering into an agreement relating to a transaction which, if completed, would result in a
Change of Control, or otherwise becoming aware of a pending Change of Control, the Corporation shall give written notice of the proposed Change of Control to the Award holders, together with a description of the effect of such Change of Control on
outstanding Awards, not less than seven (7) days prior to the closing of the transaction resulting in the Change of Control. 

(c)    The Board may, in its sole discretion, accelerate the vesting and/or the Expiry Date of any or all outstanding
Awards to provide that, notwithstanding the vesting provisions of such Awards or any Grant Agreement, such designated outstanding Awards shall be fully vested and conditionally exercisable (in the case of Options) upon (or prior to) the completion
of the Change of Control provided that the Board shall not, in any case, authorize the exercise of Options pursuant to this Section 4.4(c) beyond the Expiry Date of the Options. If the Board elects to accelerate the vesting and/or the Expiry
Date of the Options, then if any of such Options are not exercised within seven (7) days after the applicable holders are given the notice contemplated in Section 4.4(b) (or such later Expiry Date as the Board may prescribe), such
unexercised Options shall, unless the Board otherwise determines, terminate and Expire following the completion of the proposed Change of Control. If, for any reason, the Change of Control does not occur within the contemplated time period, the
acceleration of the vesting and the Expiry Date of the Awards shall be retracted and vesting shall instead revert to the manner provided in the Grant Agreement. 

(d)    To the extent that the Change of Control would also result in a capital reorganization, arrangement, amalgamation
or reclassification of the share capital of the Corporation (and the Board does not accelerate the vesting and/or the Expiry Date of Awards 

  
 18 

 
pursuant to Section 4.4(c)), the Corporation shall make adequate provisions to ensure that, upon completion of the proposed Change of Control, the number and kind of shares subject to
outstanding Awards and, if applicable, the Exercise Price per share of Options shall be appropriately adjusted (including by substituting the Awards for awards with respect to securities in any successor entity to the Corporation) in such manner as
the Board considers equitable to prevent substantial dilution or enlargement of the rights granted to Award holders. The Board may make changes to the terms of the Awards or the Plan to the extent necessary or desirable to comply with any rules,
regulations or policies of any stock exchange on which any securities of the Corporation may be listed, provided that the value of previously granted Awards and the rights of Award holders are not materially adversely affected by any such changes.

 (e)    Notwithstanding anything else to the contrary herein, in the event of a potential Change of Control, the Board
shall have the power, in its sole discretion, to modify the terms of this Plan and/or the Awards (including, for greater certainty, to cause the vesting of all unvested Awards) to assist the Participants to tender into a take-over bid or other
transaction leading to a Change of Control. For greater certainty, in the event of a take-over bid or other transaction leading to a Change of Control, the Board shall have the power, in its sole discretion, to permit Participants to conditionally
exercise their Options, such conditional exercise to be conditional upon the take-up by such offeror of the Shares or other securities tendered to such take-over bid in accordance with the terms of such
take-over bid (or the effectiveness of such other transaction leading to a Change of Control). If, however, the potential Change of Control referred to in this Section 4.4(e) is not completed within the time specified therein (as the same may
be extended), then notwithstanding this Section 4.4(e) or the definition of “Change of Control”: (i) any conditional exercise of vested Options shall be deemed to be null, void and of no effect, and such conditionally exercised
Options shall for all purposes be deemed not to have been exercised; (ii) Shares which were issued pursuant to exercise of Options which vested pursuant to this Section 4.4 shall be returned by the Participant to the Corporation and
reinstated as authorized but unissued Shares; and (iii) the original terms applicable to Options which vested pursuant to this Section 4.4 shall be reinstated. 

ARTICLE V 

OTHER AWARDS 

Section 5.1    General 

In addition to Awards of Options hereunder, the Board may grant the types of Awards described in this Article 5 (“Other
Awards”), in accordance with the terms of this Article and the Plan. 
 The Board has the right to accelerate the date upon which
any Other Award vests notwithstanding the vesting schedule set forth for such Other Award, regardless of any adverse or potentially adverse tax consequences resulting from such acceleration. 

  
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 Section 5.2    Restricted Stock 

The Board may grant or award Shares to Eligible Persons that are subject to transfer, vesting and forfeiture restrictions (“Restricted
Stock”) in respect of such number of Shares, and subject to such terms or conditions, as it shall determine and specify in a Grant Agreement, and may provide in a Grant Agreement for an Option to be exercisable for Restricted Stock. A
holder of Restricted Stock shall have all of the rights of a shareholder of the Corporation, including the right to vote the shares, unless the Board shall otherwise determine at the time of grant; provided that unless the Board determines otherwise
any dividends paid on Restricted Stock will be held in escrow until all restrictions on such Shares have lapsed. Unless a Participant’s Grant Agreement provides to the contrary, unvested Restricted Stock shall not be transferred without the
written consent of the Board. In addition, at the time of termination for any reason of a Participant’s employment or other service relationship with the Corporation or a subsidiary, unvested Restricted Stock shall be forfeited to the
Corporation for no consideration, unless otherwise determined by the Board. Share certificates, if any, representing Awards of Restricted Stock (which may also be held in book entry or similar form) shall be imprinted with a legend to the effect
that the Shares represented may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of except in accordance with the terms of the Grant Agreement and, if the Board so determines, the holder may be required to deposit the
share certificates or other evidence of legal and beneficial ownership with the President, Chief Financial Officer, Secretary or other officer of the Corporation or with an escrow agent designated by the Board, together with a stock power or other
instrument of transfer appropriately endorsed in blank. In the event that the Restricted Stock is not represented by a share certificate, the Corporation shall direct the Corporation’s registrar and transfer agent to make an appropriate
notation of the restrictions on transfer to which the Restricted Stock is subject in the stock books and records of the Corporation. 

Section 5.3    Restricted Stock Units 

The Board may grant Awards payable in Shares upon vesting (“Restricted Stock Units”) to Eligible Persons hereunder, in respect
of such number of Shares, and subject to such terms or conditions, as it shall determine and specify in a Grant Agreement. A Restricted Stock Unit represents the right to receive, without payment to the Corporation, a Share. Restricted Stock Units
shall become vested as determined by the Board as set forth in the applicable Grant Agreement, unless otherwise described in the Plan. Amounts payable in connection with a Restricted Stock Unit shall be paid to the holder thereof as set forth in the
applicable Grant Agreement, but in no event later than two and one-half months following the end of the calendar year in which the applicable vesting condition is met (unless receipt is deferred in accordance
with procedures adopted by the Board, any of which shall comply with the requirements of Section 409A of the Code if the Participant is a United States taxpayer). Restricted Stock Units shall not constitute or be treated as property or as a
trust fund of any kind. All amounts at any time attributable to the Restricted Stock Units shall be and remain the sole property of the Corporation and all holders’ rights thereunder are limited to the rights to receive Shares as provided in
the Plan and the applicable Grant Agreement. 
 Section 5.4    Other Share-Based Awards; Performance Vesting

 The Board may grant such Other Awards payable in Shares as the Board may determine to be necessary or appropriate, including awards of
Shares that are not subject to vesting or forfeiture restrictions. The vesting of Other Awards hereunder may be made subject to the attainment of performance goals, as the Board may determine in its discretion. 

  
 20 

 APPENDIX 1 

US RESIDENT EMPLOYEES 
 The
terms of the Plan are hereby modified with respect to those Participants who are U.S. Participants: 
 SPECIAL APPENDIX 

to the 
 Zymeworks Inc. Amended and
Restated Stock Option and Equity Compensation Plan 
 Special Provisions Applicable to Participants Subject to 

the United States Internal Revenue Code 

This Appendix sets forth special provisions of the Zymeworks Inc. Amended and Restated Stock Option and Equity Compensation Plan (the
“Plan”) that apply to U.S. Participants. All Options issued under the Plan to U.S. Participants are intended to be exempt from Section 409A of the Code, or any successor thereto, and all provisions hereunder shall be read,
interpreted, and applied with that purpose in mind. Terms used herein that are defined in the Plan shall have the meanings set forth in the Plan, as amended from time to time. 

 

	1.	 Interpretation 

 

	(a)	 For the purposes of this Appendix, the following terms have the following meanings: 

 

	 	(i)	 “Code” means the United States Internal Revenue Code of 1986, as amended, and any applicable
United States Treasury Regulations and other binding regulatory guidance thereunder; 

  

	 	(ii)	 “Incentive Stock Option” means any Option granted under the Plan which is designated in the
Grant Agreement (at the time it is granted) as an incentive stock option within the meaning of Section 422 of the Code or any successor thereto and which also satisfies the requirements of such section (including, without limitation, the
requirement that the Participant is employed by the Corporation or a “parent corporation” or “subsidiary corporation” of the Corporation (as such terms are defined in Section 424 of the Code)); 

 

	 	(iii)	 “Non-Qualified Option” means any Option granted under
the Plan to a U.S. Participant which is not an Incentive Stock Option; 

  

	 	(iv)	 “Ten Percent Shareholder” means a U.S. Participant who owns (or is deemed to own pursuant to
Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation or any subsidiary of the Corporation, as applicable (determined in accordance with
Section 422 of the Code); 

  
 21 

	 	(v)	 “Separation From Service” shall have the meaning as set forth in United States Treasury
Regulation Section 1.409A-1(h) (after giving effect to the presumptions contained therein); and 

  

	 	(vi)	 “U.S. Participant” shall have the meaning set forth in Section 2(a), below.

  

	(b)	 The Plan and this Appendix are complementary to each other and shall, with respect to Options granted to U.S.
Participants, be read and deemed as one. In the event of any contradiction, whether explicit or implied, between the provisions of this Appendix and the Plan, the provisions of this Appendix shall prevail with respect to Options granted to U.S.
Participants. Options may be granted under this Appendix either as Incentive Stock Options or as Non-Qualified Options, subject to any applicable restrictions or limitations as provided under applicable law.

  

	2.	 Application 

  

	(a)	 The following special rules and limitations are applicable to Options issued under the Plan to Participants
subject to taxation in the United States (referred to hereunder as “U.S. Participants”) at the time of grant. 

  

	(b)	 Incentive Stock Options may be granted with respect to a maximum fixed amount equal to 20% of the Shares
reserved for issuance under the Plan at the Effective Time (subject to adjustment pursuant to Section 2.2(e) of the Plan). 

  

	(c)	 To the extent that the aggregate fair market value (determined as of the time the Option is granted) of the
Shares with respect to which Incentive Stock Options are exercisable for the first time by the U.S. Participant under all Share Compensation Arrangements of the Corporation and/or its Affiliates (if applicable) exceeds US$100,000 during any calendar
year, the Options or portions thereof that exceed such limit (according to the order in which they are granted) shall constitute Non-Qualified Options in accordance with Section 422(d) of the Code or any
successor thereto, notwithstanding any contrary provision of the Plan and/or Grant Agreement. 

  

	(d)	 Each U.S. Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may
be imposed on or for the account of such U.S. Participant in connection with the Plan (including any taxes and penalties under Section 409A), and neither the Corporation nor any Affiliate of the Corporation shall have any obligation to pay,
indemnify or otherwise hold such U.S. Participant (or any beneficiary) harmless from any or all of such taxes or penalties. 

  

	(e)	 The Corporation and its Affiliates, if applicable, shall withhold taxes according to the requirements of
applicable laws, rules and regulations, including the withholding of taxes at source to satisfy any applicable U.S. and non-U.S. federal, provincial, state or local tax withholding obligation and employment
taxes. 

  

	(f)	 Each recipient of an Option hereunder who is or who becomes a U.S. Participant is advised to consult with his
or her personal tax advisor with respect to the tax consequences under federal, state, local and other tax laws of the receipt and/or exercise of an Option hereunder. 

  
 22 

	(g)	 Without derogating from the powers and authorities of the Board detailed in the Plan, and unless specifically
required under applicable law, the Board shall also have the sole and full discretion and authority to administer the provisions of this Appendix and all actions related thereto including, in addition to any powers and authorities specified in the
Plan, the performance, from time to time and at any time, of either or both of the following: 

  

	 	(i)	 deciding whether to issue Options as Incentive Stock Options or as
Non-Qualified Options; and 

  

	 	(ii)	 adopting standard forms of Grant Agreements to be applied with respect to U.S. Participants, incorporating and
reflecting, inter alia, relevant provisions regarding the grant of Options in accordance with this Appendix and amending or modifying the terms of such standard forms from time to time. 

 

	3.	 Exercise Price 

The Exercise Price of each Option granted under the Plan to a U.S. Participant shall not be less than the Fair Market Value of a Share on the
date such Option is granted. Notwithstanding any other provision of the Plan, in determining the Fair Market Value of a Share under the Plan in connection with the grant of an Option to a U.S. Participant, the Board will make the determination of
Fair Market Value in good faith consistent with the rules of Sections 422 and 409A of the Code and the rules of the NYSE, to the extent applicable. 
  

	4.	 Expiry of Option 

Notwithstanding any other provision of the Plan and any provisions of the Grant Agreement to the contrary, Options granted to U.S. Participants
may not be exercised under any circumstance following the ten (10) year anniversary of the date of grant. 
  

	5.	 Disqualifying Disposition 

Without limiting the generality of the foregoing, if a U.S. Participant sells or otherwise disposes of any of the Shares acquired pursuant to
an Incentive Stock Option on or before the later of (i) the date two years after the date the Option is granted or (ii) the date one year after the transfer of such Shares to the U.S. Participant upon exercise of the Incentive Stock
Option, the U.S. Participant shall notify the Corporation in writing within 30 days after the date of any such disposition (“Disqualifying Disposition”) and shall remit to the Corporation or its Affiliate, as applicable, the amount
of any applicable U.S. and non-U.S. federal, state, provincial and local withholding and employment taxes which the Corporation is required to collect in accordance with applicable laws (if any). 

 

	6.	 Adjustments to Options 

In the event of a corporate transaction requiring the adjustment of an Option held by a U.S. Participant, the number of Shares deliverable on
the exercise of an Option held by a U.S. Participant and the Exercise Price of an Option held by a U.S. Participant shall be adjusted in a manner intended to keep the Options exempt from Section 409A of the Code and to comply with
Section 422 of the Code, if applicable, in the case of an Incentive Stock Option. 

  
 23 

	7.	 Amendment of Appendix 

The Board shall retain the power and authority to amend or modify this Appendix and any Option issued hereunder to the extent the Board in its
sole discretion deems necessary or advisable to comply with law or regulation, including to comply with any guidance issued under Sections 409A or 422 of the Code. Such amendments may be made without the approval of any U.S. Participant. 

 

	8.	 Ten Percent Shareholders 

 

	(a)	 If any U.S. Participant to whom an Incentive Stock Option is to be granted under this Plan is, at the time of
the grant of such Option, a Ten Percent Shareholder, then the following special provisions shall apply: 

  

	 	(i)	 the per share price at which Shares may be purchased upon the exercise of an Incentive Stock Option shall be no
less 110% of the Fair Market Value of a Share at such time as the Option is granted (as determined under the applicable provisions of the Code); and 

  

	 	(ii)	 the maximum term of the Option shall not exceed five (5) years from the date the Option is granted.

  

	(b)	 Subject to the provisions of this Section 8 regarding Ten Percent Shareholders, and applicable
requirements for securityholder approval, no Incentive Stock Option may be granted hereunder to a U.S. Participant following the expiry of ten (10) years after the date on which this Plan is adopted by the Board. 

 

  
 24 

 SCHEDULE “A” 

ZYMEWORKS INC. STOCK OPTION GRANT AGREEMENT 

This agreement (the “Grant Agreement”) evidences the Options granted by Zymeworks Inc. (the “Corporation”) to the
undersigned (the “Participant”), pursuant to and subject to the terms of the Zymeworks Inc. Amended and Restated Stock Option and Equity Compensation Plan (the “Plan”), which is incorporated herein by reference. The Schedules
attached to this Stock Option Grant Agreement shall form an integral part of this Stock Option Grant Agreement. 
 The Corporation hereby
grants to the Participant on the Date of Grant such number of Options as set forth in the attached Schedule “A”, as may be amended from time to time, with each Option representing the right to purchase, on the terms provided herein and in
the Plan (including, without limitations, the applicable exercise provisions), a Share with an Exercise Price per Share as set forth in the attached Schedule “A”, as may be amended from time to time, in each case subject to adjustment in
accordance with the provisions of the Plan. 
 ARTICLE 1 

INTERPRETATION 
  

	(a)	 Capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Plan.

  

	(b)	 Words importing the singular shall include the plural and vice versa and words importing any gender include any
other gender. 

  

	(c)	 Unless otherwise specified herein, all references to money amounts are to U.S. dollars. 

 

	(d)	 The words “including” and “includes” mean “including (or includes) without
limitation”. 

 ARTICLE 2 

VESTING 
 Section 2.1 Options 

Unless earlier terminated, relinquished or expired, Options granted pursuant to this Grant Agreement shall vest in accordance with the
provisions set forth in the attached Schedule “A” as may be amended from time to time. 
 ARTICLE 3 

GENERAL PROVISIONS 
 Section 3.1
Participation in the Plan 
 No Participant has any claim or right to be granted an Option (including, without limitation, an Option granted
in substitution for any Option that has expired pursuant to the terms of this Plan), and the granting of any Option is not to be construed as giving a Participant a right to continued employment or to remain a Consultant, director, officer or
employee, as the case may 

  
 A-1 

 
be, of the Corporation or an Affiliate of the Corporation. Nothing contained in this Grant Agreement or the Plan shall interfere in any way with the rights of the Corporation or an Affiliate of
the Corporation in connection with the employment or termination of any such person. Upon any such termination, a Participant’s rights to exercise Options will be subject to restrictions and time limits for the exercise of Options. Complete
details of such restrictions are set out in the Plan, and in particular in Article 4 thereof (except to the extent that such provisions are varied in accordance with Schedule “A” hereto). The Participant hereby agrees that any rule,
regulation or determination, including the interpretation by the Board of the Plan, the Option granted hereunder and the exercise thereof, is final and conclusive for all purposes and binding on all persons including the Corporation and the
Participant. 
 Section 3.2 Binding Agreement 

The exercise of the Options granted hereby, issuance of Shares and ownership of the Shares are subject to the terms and conditions of the Plan
(all of which are incorporated into and form part of this Grant Agreement) and this Grant Agreement. This Agreement shall inure to the benefit of and be binding upon the parties and their respective successors (including any successor by reason of
amalgamation of any party) and permitted assigns. 
 Section 3.3 Governing Law 

This Grant Agreement shall be governed by the laws of the State of Delaware and the federal laws of the United States, in each case, without
giving effect to the principles of conflicts of law thereof. 
 [The remainder of this page is intentionally left blank]

  
 A-2 

 By acceptance of these Options, the undersigned acknowledges receipt of the Plan text and
agrees hereby to be subject and bound to the terms of the Plan. The undersigned further acknowledges and agrees that the Participant’s abovementioned participation is voluntary and has not been induced by expectation of engagement, appointment,
employment, continued engagement or continued employment, as the case may be. 
 Accepted and agreed to this      day of
        ,        . 
  

					
	 Corporation:
	 		 	ZYMEWORKS INC.
			
		 		 	By:
			
		 		 	Name:
			
		 		 	Title:
			
	 Participant:
	 		 	
			
		 		 	Signature of Option Holder
			
		 		 	Name of Option Holder (Please Print)
			
	 Address:
	 		 	

  
 A-3 

 EXHIBIT “A” OPTION GRANT 

Participant:                        
 [☐] 
 Number of Options            [☐] 

Exercise Price:                   [☐] 

Date of Grant:                    [☐] 

Vesting Schedule               [☐] 

Expiry
Date1                      [☐] 

 

	[1]	 Include here any provisions with respect to the expiry of vested/unvested options that would depart from
Section 4.3 of the Plan (i.e., the impact of certain events on the vesting/exercise period, including termination for cause, voluntary resignation, termination other than for cause, termination upon a change of control, and retirement, death or
disability). 

  
 A-4 

 EXHIBIT “B” ELECTION TO EXERCISE STOCK OPTIONS 

TO: ZYMEWORKS INC. (the “Corporation”) 

The undersigned option holder hereby elects to exercise Options granted by the Corporation to the undersigned pursuant to a Grant Agreement
dated             , 20         under the Zymeworks Inc. Amended and Restated Stock Option and Equity Compensation Plan (the “Plan”), for
the number Shares set forth below. Capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Plan. 
  

			
	Number of Shares to be Acquired:	  	
		
	Option Exercise Price (per Share):                        $        	  	
		
	Aggregate Purchase
Price:                                     $   
     	  	
		
	Amount enclosed that is payable on account of any Source Deductions relating to this Option exercise (contact the Corporation for details of such amount):	  	

					
			
	☐	  	Or check here if alternative arrangements have been made with the Corporation;	  	

 and hereby tenders a certified cheque, bank draft or other form of payment confirmed as acceptable by the Corporation for such
aggregate purchase price, and, if applicable, all Source Deductions, and directs such Shares to be registered in the name of 
 I hereby agree to file or
cause the Corporation to file on my behalf, on a timely basis, all insider reports and other reports that I may be required to file under applicable securities laws. I understand that this request to exercise my Options is irrevocable. 

DATED this     day of         ,          

 

	
	  

	Signature of Option Holder
	
	  

	Name of Option Holder (Please Print)

  
 A-5 

 EXHIBIT “C” SURRENDER NOTICE 

TO: ZYMEWORKS INC. (the “Corporation”) 
 The
undersigned option holder hereby elects to transfer, dispose and surrender Options granted by the Corporation to the undersigned pursuant to a Grant Agreement dated             ,
20     under the Zymeworks Inc. Amended and Restated Stock Option and Equity Compensation Plan (the “Plan”) to the Corporation in exchange for Shares as calculated in accordance with Section 4.1(c) of the Plan.
Capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Plan. 
 Please issue a certificate or certificates
representing the Shares in the name of:              
 I hereby agree to file or cause the
Corporation to file on my behalf, on a timely basis, all insider reports and other reports that I may be required to file under applicable securities laws. I understand that this request to exercise my Options is irrevocable. 

DATED this     day of         ,         . 

 

	
	  

	Signature of Option Holder
	
	  

	Name of Option Holder (Please Print)

 Type of
Option2            [Incentive Stock Option/Non-Qualified Option] 

 
  

	2 	 Add for U.S. Participants 

  
 A-6 

 SCHEDULE “B” 

ZYMEWORKS INC. RESTRICTED STOCK UNIT GRANT AGREEMENT 

This agreement (the “Grant Agreement”) evidences the Restricted Stock Units granted by Zymeworks Inc. (the “Corporation”)
to the undersigned (the “Participant”), pursuant to and subject to the terms of the Zymeworks Inc. Amended and Restated Stock Option and Equity Compensation Plan (the “Plan”), which is incorporated herein by reference. The
Exhibit attached to this Restricted Stock Unit Grant Agreement shall form an integral part of this Restricted Stock Unit Agreement. 
 The
Corporation hereby grants to the Participant on the Date of Grant such number of Restricted Stock Units as set forth in the attached Exhibit “A”, as may be amended from time to time, with each Restricted Stock Unit representing the right
to receive, on the terms provided herein and in the Plan, a Share as set forth in the attached Exhibit “A”, as may be amended from time to time, in each case subject to adjustment in accordance with the provisions of the Plan. 

ARTICLE 1 
 INTERPRETATION 

 

	(a)	 Capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Plan.

  

	(b)	 Words importing the singular shall include the plural and vice versa and words importing any gender include any
other gender. 

 ARTICLE 2 

VESTING 
 Section 2.1 Restricted Stock Units

 Unless earlier terminated, relinquished or expired, Restricted Stock Units granted pursuant to this Grant Agreement shall vest in
accordance with the provisions set forth in the attached Schedule “A” as may be amended from time to time. 
 ARTICLE 3 

GENERAL PROVISIONS 
 Section 3.1
Participation in the Plan 
 No Participant has any claim or right to be granted a Restricted Stock Unit, and the granting of any Restricted
Stock Unit is not to be construed as giving a Participant a right to continued employment or to remain a Consultant, director, officer or employee, as the case may be, of the Corporation or an Affiliate of the Corporation. Nothing contained in this
Grant Agreement or the Plan shall interfere in any way with the rights of the Corporation or an Affiliate of the Corporation in connection with the employment or termination of any such person. Upon any such termination, a Participant’s rights
with respect to unvested Restricted Stock Units shall be terminated, unless otherwise determined by the Board. The Participant hereby agrees that any rule, regulation or 

  
 B-1 

 
determination, including the interpretation by the Board of the Plan, the Restricted Stock Units granted hereunder and the exercise thereof, is final and conclusive for all purposes and binding
on all persons including the Corporation and the Participant. 
 Section 3.2 Issuance; Binding Agreement 

Any issuance of Shares and ownership of the Shares are subject to the terms and conditions of the Plan (all of which are incorporated into and
form part of this Grant Agreement) and this Grant Agreement. The Participant’s record of Share ownership shall be recorded in the books of the Corporation only when the Restricted Stock Units vest and the Shares are issued. Shares shall be
delivered to the Participant as soon as practicable following the applicable vest date, subject to the Participant’s employment or service on such date. This Grant Agreement shall inure to the benefit of and be binding upon the parties and
their respective successors (including any successor by reason of amalgamation of any party) and permitted assigns. 
 Section 3.3. Miscellaneous 

 

	(a)	 The Participant hereby acknowledges and agrees that any sums required to satisfy the U.S. and non-U.S. federal, state, provincial and local tax withholding obligations of the Corporation that arise in connection with the Award or the transactions contemplated by this Grant Agreement (the “Tax
Obligations”) are the sole responsibility of the Participant. By accepting this Grant Agreement, the Participant hereby elects, effective on the Date of Grant, to sell Shares held by the Participant in an amount and at such time as is
determined in accordance with this Section 3.3(a), and to allow the Agent, as defined below, to remit the cash proceeds of such sales to the Corporation as more specifically set forth below (a “Sell to Cover”) to permit the
Participant to satisfy the Tax Obligations and further acknowledges and agrees to the following provisions: 

  

	 	(i)	 The Participant hereby irrevocably appoints the Corporation’s designated broker Solium Capital Inc., or
such other broker as the Corporation may select, as the Participant’s agent (the “Agent”), and authorizes and directs the Agent to: 

  

	 	1.	 Sell on the open market at the then prevailing market price(s), on the Participant’s behalf, as soon as
practicable on or after the delivery of Shares underlying the Restricted Stock Units, the number (rounded up to the next whole number) of Shares sufficient to generate proceeds to cover (A) the satisfaction of the Tax Obligations arising from
the settlement of the associated vested Restricted Stock Units and (B) all applicable fees and commissions due to, or required to be collected by, the Agent with respect thereto; 

 

	 	2.	 Remit directly to the Corporation the proceeds necessary to satisfy the Tax Obligations arising from the
settlement of the associated vested Restricted Stock Units 

  

	 	3.	 Retain the amount required to cover all applicable fees and commissions due to, or required to be collected by,
the Agent, relating directly to the sale; and 

  
 B-2 

	 	4.	 Deposit any remaining funds in the Participant’s account. 

 

	 	(ii)	 The Participant acknowledges that the Participant’s election to Sell to Cover and the corresponding
authorization and instruction to the Agent set forth herein is intended to comply with the requirements of Rule 10b5-1(c)(1) under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and to be interpreted to comply with the requirements of Rule 10b5-1(c) under the Exchange Act (the Participant’s election to Sell to Cover and the provisions of this Section 3.3(a),
collectively, the “10b5-1 Plan”). The Participant acknowledges that by accepting this Award, he or she is adopting the 10b5-1 Plan to permit the Participant to
satisfy the Tax Obligations. The Participant authorizes the Corporation and the Agent to cooperate and communicate with one another to determine the number of Shares that must be sold pursuant to this Section 3.3(a) to satisfy the Tax
Obligations. 

  

	 	(iii)	 The Participant acknowledges that the Agent is under no obligation to arrange for the sale of Shares at any
particular price under this 10b5-1 Plan and that the Agent may effect sales as provided in this 10b5-1 Plan in one or more sales and that the average price for
executions resulting from bunched orders may be assigned to the Participant’s account. In addition, the Participant acknowledges that it may not be possible to sell Shares as provided for in this 10b5-1
Plan and in the event of the Agent’s inability to sell Shares, the Participant will continue to be responsible for the Tax Obligations. 

  

	 	(iv)	 The Participant hereby agrees to execute and deliver to the Agent any other agreements or documents as the
Agent reasonably deems necessary or appropriate to carry out the purposes and intent of this 10b5-1 Plan. The Agent is a third-party beneficiary of this Section 3.3(a) and the terms of this 10b5-1 Plan. 

  

	 	(v)	 The Participant’s election to Sell to Cover and to enter into this
10b5-1 Plan is irrevocable. This 10b5-1 Plan shall terminate not later than the date on which the Tax Obligations arising from the Award or the transactions contemplated
by this Grant Agreement are satisfied. 

  

	 	(vi)	 The Participant further represents that: 

 

	 	1.	 The Participant is not in possession, and is not aware, of any material nonpublic information about the Shares
or the Corporation as of the date of his or her signature below; 

  

	 	2.	 Unless this 10b5-1 Plan is modified or terminated in accordance with
the terms hereof, the Participant agrees not to alter, deviate from or suspend the terms of this 10b5-1 Plan; 

  

	 	3.	 The Participant is entering into this 10b5-1 Plan in good faith and not
as part of a plan or scheme to evade any law, including, without limitation, any securities laws or any law governing insider trading; and 

  
 B-3 

	 	4.	 The Participant will not disclose to the Agent any information concerning the Corporation that might influence
the execution of this 10b5-1 Plan. 

  

	(b)	 To the extent that the Corporation declares a cash dividend while all or a portion of the Restricted Stock
Units are unvested, the Participant shall be credited with dividend equivalent rights (as determined by the Board in its discretion) with respect to each Share subject to the unvested portion of the Restricted Stock Units. Such dividend equivalent
right will entitle the Participant to payment of such dividend only upon vesting of the corresponding portion of the Restricted Stock Unit; and such right will be forfeited to the extent the corresponding portion of the Restricted Stock Unit is
forfeited. 

  

	(c)	 No purported sale, assignment, mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust
(voting or other) or other disposition of, or creation of a security interest in or lien on, any of the Restricted Stock Units by any holder thereof shall be valid (other than pursuant to the laws of descent and distribution). 

 

	(d)	 This Grant Agreement, together with the Plan, constitutes the entire agreement and understanding between the
parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement not expressly set
forth in this Grant Agreement shall affect or be used to interpret, change or restrict the express terms and provisions of this Grant Agreement provided, however, in any event, this Grant Agreement shall be subject to and governed by the Plan.

  

	(e)	 The award of Restricted Stock Units evidenced by this Grant Agreement to any Participant who is a United States
taxpayer is intended to be exempt from the nonqualified deferred compensation rules of Section 409A of the Code as a “short term deferral” (as that term is used in the final regulations and other guidance issued under
Section 409A of the Code, including Treasury Regulation Section 1.409A-1(b)(4)(i)), and shall be construed and administered accordingly. 

 

	(f)	 This Grant Agreement shall be governed by the laws of the State of Delaware and the federal laws of the United
States, in each case, without giving effect to the principles of conflicts of law thereof. 

 [The remainder of
this page is intentionally left blank] 

  
 B-4 

 By acceptance of these Restricted Stock Units, the undersigned acknowledges receipt of the
Plan text and agrees hereby to be subject and bound to the terms of the Plan. The undersigned further acknowledges and agrees that the Participant’s abovementioned participation is voluntary and has not been induced by expectation of
engagement, appointment, employment, continued engagement or continued employment, as the case may be. 
 Accepted and agreed to this
    day of         ,         . 
  

					
			
	 Corporation:
	 		 	ZYMEWORKS INC.
			
		 		 	By:
			
		 		 	Name:
			
		 		 	Title:
			
	 Participant:
	 		 	
		 		 	  

		 		 	Signature of Restricted Stock Unit Holder
			
		 		 	  

		 		 	Name of Restricted Stock Unit Holder (Please Print)
			
	 Address:
	 		 	

  
 B-5 

 EXHIBIT “A” RESTRICTED STOCK UNIT GRANT 

 

			
	Participant:	  	[☐]
		
	Number of Restricted Stock Units	  	[☐]
		
	Date of Grant:	  	[☐]
		
	Vesting Schedule	  	[☐] There shall be no proportionate or partial vesting between the foregoing vesting dates. All vesting shall be subject to the Participant’s continued employment or service on the applicable vesting date.
		
	Sell to Cover Election	  	By accepting this Award, Participant hereby: (1) elects, effective on the Date of Grant, to sell Shares issued in respect of the Award in an amount determined in accordance with Section 3.3(a) of the Grant Agreement, and to
allow the Agent to remit the cash proceeds of such sale to the Corporation as more specifically set forth in Section 3.3(a) of the Grant Agreement (a “Sell to Cover”); (2) directs the Corporation to make a cash payment to satisfy the
Tax Obligations from the cash proceeds of such sale directly to the appropriate taxing authorities; and (3) represents and warrants that (i) the Participant has carefully reviewed Section 3.3(a) of the Grant Agreement, (ii) on
the date Participant accepts this Award he or she is not in possession, and is not aware, of any material nonpublic information about the Shares or the Corporation and is entering into the Grant Agreement and this election to Sell to Cover in good
faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1(c) under the Exchange Act, and (iii) it is the Participant’s intent that this election to Sell to Cover and
Section 3.3(a) of the Grant Agreement comply with the requirements of Rule 10b5-1(c)(1) under the Exchange Act, and be interpreted to comply with the requirements of Rule
10b5-1(c) under the Exchange Act. The Participant further acknowledges that by accepting this Award, Participant is adopting a 10b5-1 Plan (as defined in
Section 3.3(a) of the Grant Agreement) to permit Participant to conduct a Sell to Cover sufficient to satisfy the Tax Obligations as more specifically set forth in Section 3.3(a) of the Grant Agreement.

  
 B-6EX-10.4

 Exhibit 10.4 

ZYMEWORKS INC. 
 SECOND
AMENDED AND RESTATED EMPLOYEE STOCK OPTION PLAN 
 (as amended and restated through the Arrangement Effective Time) 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE 1 DEFINITIONS AND INTERPRETATION
	  	 	1	 
			
	 1.1
	 	 Definitions
	  	 	1	 
	 1.2
	 	 Choice of Law
	  	 	4	 
	 1.3
	 	 Headings
	  	 	4	 
		
	 ARTICLE 2 PURPOSE AND PARTICIPATION
	  	 	4	 
			
	 2.1
	 	 Purpose
	  	 	4	 
	 2.2
	 	 Participation
	  	 	4	 
	 2.3
	 	 Notification of Award
	  	 	4	 
	 2.4
	 	 Copy of Plan
	  	 	4	 
	 2.5
	 	 Limitation
	  	 	4	 
		
	 ARTICLE 3 TERMS AND CONDITIONS OF OPTIONS
	  	 	4	 
			
	 3.1
	 	 Board to Issue Common Shares
	  	 	4	 
	 3.2
	 	 Number of Common Shares
	  	 	5	 
	 3.3
	 	 Term of Option
	  	 	5	 
	 3.4
	 	 Termination
	  	 	5	 
	 3.5
	 	 Exercise Price
	  	 	7	 
	 3.6
	 	 Additional Terms
	  	 	8	 
	 3.7
	 	 Going Public Agreements
	  	 	8	 
	 3.8
	 	 Assignment of Options
	  	 	8	 
	 3.9
	 	 Adjustments
	  	 	8	 
	 3.10
	 	 Option Grant and Vesting Terms
	  	 	8	 
	 3.11
	 	 Incentive Stock Options
	  	 	9	 
		
	 ARTICLE 4 EXERCISE OF OPTION
	  	 	10	 
			
	 4.1
	 	 Exercise of Option
	  	 	10	 
	 4.2
	 	 Subscription Agreement
	  	 	10	 
	 4.3
	 	 Execution of Shareholder’s Agreement
	  	 	10	 
	 4.4
	 	 Issue of Share Certificates
	  	 	10	 
	 4.5
	 	 Condition of Issue
	  	 	10	 
	 4.6
	 	 Net Settlement
	  	 	11	 
		
	 ARTICLE 5 ADMINISTRATION
	  	 	11	 
			
	 5.1
	 	 Administration
	  	 	11	 
	 5.2
	 	 Interpretation
	  	 	11	 
	 5.3
	 	 Withholding
	  	 	11	 
		
	 ARTICLE 6 AMENDMENT, TERMINATION AND NOTICE
	  	 	12	 
			
	 6.1
	 	 Prospective Amendment
	  	 	12	 
	 6.2
	 	 Retrospective Amendment
	  	 	12	 
	 6.3
	 	 Approvals
	  	 	12	 
	 6.4
	 	 Termination
	  	 	12	 
	 6.5
	 	 Agreement
	  	 	12	 
	 6.6
	 	 Notice
	  	 	12	 

  
 i 

					
		
	 SCHEDULE “A”
	  	 	13	 
		
	 SCHEDULE “B”
	  	 	15	 
		
	 SCHEDULE “B-1”
	  	 	16	 
		
	 SCHEDULE “C”
	  	 	18	 
		
	 SCHEDULE “D”
	  	 	19	 

  

  
 ii 

 STOCK OPTION PLAN 

ARTICLE 1 
 DEFINITIONS
AND INTERPRETATION 
  

	1.1	 Definitions  

As used herein, unless there is something in the subject matter or context inconsistent therewith, the following terms will have the meanings set forth below:

  

	 	(a)	 “Administrator” means, initially, the Chief Financial Officer of the Corporation and
thereafter will mean such director or other senior officer or employee of the Corporation as may be designated as Administrator by the Board from time to time. 

 

	 	(b)	 “Arrangement Effective Time” has the meaning given to that term in the Transaction Agreement.

  

	 	(c)	 “Award Date” means the date on which the Board awards a particular Option or such other
effective award date determined by the Board. 

  

	 	(d)	 “Board” means the board of directors of the Corporation, or any committee thereof to which the
board of directors of the Corporation has delegated the power to administer and grant Options under the Plan. 

  

	 	(e)	 “Cause” means: 

 

	 	(i)	 Cause as such term is defined in either the written employment agreement between the Corporation and the Option
Holder or the applicable Option Certificate; or 

  

	 	(ii)	 in the event there is no written employment agreement between the Corporation and the Option Holder or Cause is
not defined therein, the usual meaning of just cause under the common law or the laws of the jurisdiction in which the Option Holder is employed. 

  

	 	(f)	 “Code” has the meaning given to that term under section 3.11. 

 

	 	(g)	 “Common Share” or “Common Shares” or “Common Stock” means,
as the case may be, one or more shares of the common stock of the Corporation. 

  

	 	(h)	 “Corporation” means Zymeworks Inc, a Delaware corporation. 

 

	 	(i)	 “Compensation Committee” means the compensation committee of the Corporation, if and as
constituted from time to time; 

  

	 	(j)	 “Convertible Shares” has the meaning given to that term under section 3.4(f).

  

	 	(k)	 “Director” means any individual holding the office of director of the Corporation.

  

	 	(l)	 “Employee” means any individual regularly employed on a full-time basis by the Corporation or
any of its subsidiaries and such other individuals, such as service providers and consultants, as may, from time to time, be permitted or not precluded by the rules and policies of the applicable Regulatory Authorities to be granted Options.

  
 1 

	 	(m)	 “Equity Securities” means: 

 

	 	(i)	 Shares or any other security of the Corporation that carries the residual right to participate in the earnings
of the Corporation and, on liquidation, dissolution or winding-up, in the assets of the Corporation, 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; or

  

	 	(iii)	 any securities issued by the Corporation which are convertible or exchangeable into such securities.

  

	 	(n)	 “Exercise Notice” means the notice respecting the exercise of an Option, in the form set out
as Schedule “B” hereto, duly executed by the Option Holder. 

  

	 	(o)	 “Exercise Period” means the period during which a particular Option may be exercised and is
the period from and including the date upon which the Option (or the applicable portion thereof) first becomes vested through to and including the Expiry Date. 

 

	 	(p)	 “Exercise Price” means the price at which an Option may be exercised as determined in
accordance with section 3.5. 

  

	 	(q)	 “Expiry Date” means the date determined in accordance with section 3.4 and after which a
particular Option cannot be exercised. 

  

	 	(r)	 “Fixed Expiry Date” has the meaning given to that term under section 3.4.

  

	 	(s)	 “IPO” means the offering and sale to the public of securities of the Corporation in connection
with which the securities of the Corporation are listed or quoted on an organized trading facility. 

  

	 	(t)	 “ISO” has the meaning given to that term under section 3.11. 

 

	 	(u)	 “Market Value” means the market value of the Common Shares as determined in accordance with
section 3.5. 

  

	 	(v)	 “Net Settlement” has the meaning given to that term under section 4.6. 

 

	 	(w)	 “Notice of Net Settlement” means the notice of Net Settlement as set out in Schedule “B-1”. 

  

	 	(x)	 “Option” means an option to acquire Common Shares, awarded to a Director or Employee under the
Plan. 

  

	 	(y)	 “Option Certificate” means the certificate, substantially in the form set out as Schedule
“A” hereto (with such changes as the Board or Administrator may determine), evidencing an Option. 

  

	 	(z)	 “Option Holder” means a Director or Employee, or former Director or Employee, who holds an
unexercised and unexpired Option or, where applicable, the Personal Representative of such person. 

  

	 	(aa)	 “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. 

  
 2 

	 	(bb)	 “Personal Representative” means: 

 

	 	(i)	 in the case of a deceased Option Holder, the executor or administrator of the deceased duly appointed by a
court or public authority having jurisdiction to do so; and 

  

	 	(ii)	 in the case of an Option Holder who for any reason is unable to manage his or her affairs, the person entitled
by law to act on behalf of such Option Holder. 

  

	 	(cc)	 “Plan” means this stock option plan. 

 

	 	(dd)	 “Purchaser” has the meaning given to that term under section 3.4(f). 

 

	 	(ee)	 “Regulatory Authorities” means all stock exchanges, inter-dealer quotation networks and other
organized trading facilities on which the Shares are listed and all securities commissions or similar securities regulatory bodies having jurisdiction over the Corporation. 

 

	 	(ff)	 “Schedule D Option” means an Option listed on Schedule D, as amended from time to time, and
“Schedule D Options” means more than one Option listed on Schedule D. 

  

	 	(gg)	 “Selling Shareholders” has the meaning given to that term under section 3.4(f).

  

	 	(hh)	 “Share” or “Shares” means, as the case may be, one or more Common Shares or
shares of any other class in the share capital of the Corporation from time to time. 

  

	 	(ii)	 “Substantial Sale” has the meaning given to that term under section 3.4(f).

  

	 	(jj)	 “Termination Date” means: 

 

	 	(i)	 in the case of the resignation of the Option Holder’s employment or the termination of the Option
Holder’s consulting or service contract by the Option Holder, the date that the Option Holder provides notice of such resignation or termination to the Corporation (or, if no notice is given, the last day of the individual’s employment or
service, as the case may be); or 

  

	 	(ii)	 in the case of the termination of the Option Holder’s employment or consulting or service contract by the
Corporation for any reason other than death or disability, the date that the Corporation delivers written notice of termination of the Option Holder’s employment or consulting or service contract to the Option Holder; or 

 

	 	(iii)	 in the case of the expiry of a fixed-term employment or consulting or service contract that is not renewed or
extended, the last day of the term. 

  

	 	(kk)	 “Transaction Agreement” means the Restated and Amended Transaction Agreement dated
August 18, 2022 by and among the Corporation (then-referred to as Zymeworks Delaware Inc.), Zymeworks Inc., a company then-existing under the Business Corporations Act (British Columbia), Zymeworks Callco ULC, and Zymeworks ExchangeCo Ltd. as
the same may be amended, modified or supplemented from time to time in accordance therewith, prior to the Arrangement Effective Time. 

  

	 	(ll)	 “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. 

 

	 	(mm)	 “U.S. Option Holder” has the meaning given to that term under section 3.11.

  
 3 

	 	(nn)	 “Withholding Obligations” has the meaning given to that term under section 5.3.

  

	1.2	 Choice of Law  

The Plan is established under, and the provisions of the Plan will be subject to and interpreted and construed in accordance with, the laws of the Province of
British Columbia. 
  

	1.3	 Headings  

The headings used herein are for convenience only and are not to affect the interpretation of the Plan. 

ARTICLE 2 
 PURPOSE AND
PARTICIPATION 
  

	2.1	 Purpose  

The purpose of the Plan is to provide the Corporation with a share-related mechanism to attract, retain and motivate qualified Directors and Employees, to
reward such of those Directors and Employees as may be awarded Options under the Plan by the Board from time to time for their contributions toward the long term goals of the Corporation and to enable and encourage such Directors and Employees to
acquire Common Shares as long term investments. 
  

	2.2	 Participation  

The Compensation Committee will, from time to time, recommend to the Board those Directors and Employees, if any, to whom Options should be awarded. The Board
will, from time to time and in its sole discretion, taking into account any recommendations of the Compensation Committee, determine those Directors and Employees, if any, to whom Options are to be awarded. 

 

	2.3	 Notification of Award  

Following the approval by the Board of the awarding of an Option, the Administrator will notify the Option Holder in writing of the award and will enclose with
such notice the Option Certificate representing the Option so awarded. 
  

	2.4	 Copy of Plan  

Each Option Holder, concurrently with the notice of the award of the Option, will be provided with a copy of the Plan. A copy of any amendment to the Plan will
be promptly provided by the Administrator to each Option Holder. 
  

	2.5	 Limitation  

The Plan does not give any Option Holder that is a Director the right to serve or continue to serve as a Director of the Corporation nor does it give any
Option Holder that is an Employee the right to be or to continue to be employed with the Corporation, have a consulting relationship with the Corporation or provide services to the Corporation. 

ARTICLE 3 
 TERMS AND
CONDITIONS OF OPTIONS 
  

	3.1	 Board to Issue Common Shares  

The Common Shares to be issued to Option Holders upon the exercise of Options (including for greater certainty, a Net Settlement pursuant to the terms of
section 4.6 hereof) will be authorized and unissued Common Shares the issuance of which will have been authorized by the Board. 

  
 4 

	3.2	 Number of Common Shares  

Subject to adjustment as provided for in section 3.9 of the Plan, the number of Common Shares that will be available for Directors and Employees to acquire
pursuant to Options granted under the Plan will be the number of Common Shares allocated to previously granted Options on the date immediately preceding the closing of the initial public offering of the Common Shares. For greater certainty, if any
Option expires or otherwise terminates for any reason without having been exercised in full, the number of Common Shares in respect of which the Option was not exercised will not again be available for the purposes of the Plan. 

 

	3.3	 Term of Option  

An Option Holder may exercise an Option (including for greater certainty, a Net Settlement pursuant to the terms of section 4.6 hereof) in whole or in part at
any time or from time to time during the Exercise Period. Any Option or part thereof not exercised within the Exercise Period will terminate and become null, void and of no effect as of 5:00 p.m. local time in Vancouver, British Columbia on the
Expiry Date. 
  

	3.4	 Termination  

The Expiry Date of an Option will be the earlier of: (i) the date that is the tenth anniversary of the Award Date of such Option, or in the case of a
Schedule D Option the fourteenth anniversary of the Award Date, or (ii) such other date so fixed by the Board at the time the particular Option is awarded provided that such date will be no later than the tenth anniversary of the Award Date of
such Option, or, in the case of a Schedule D Option no later than the fourteenth anniversary of the Award Date (the “Fixed Expiry Date”), or the date established, if applicable, in subsections (a) to (f) below: 

 

	 	(a)	 Death  

In the event that the Option Holder should die while he or she is a Director (if he or she holds his or her Option as a Director) or Employee (if he or she
holds his or her Option as an Employee), the Expiry Date for any vested portion or portions of the Option will be the date that is six months after the date of the Option Holder’s death (but not later than the Fixed Expiry Date for such
Option). The Expiry Date for any unvested portion of the Option will be the date of the Option Holder’s death. 
  

	 	(b)	 Disability  

In the event that the Option Holder becomes permanently disabled while he or she is a Director (if he or she holds his or her Option as a Director) or Employee
(if he or she holds his or her Option as an Employee) and ceases to be a Director or Employee as a result of the permanent disability, the Expiry Date for any vested portion or portions of the Option will be the date that is six months after the
date that the Option Holder ceases to be an Employee or Director, as the case may be (but not later than the Fixed Expiry Date for such Option). The Expiry Date for any unvested portion of the Option will be the date that the Option Holder ceases to
be an Employee or Director, as the case may be. 
  

	 	(c)	 Ceasing to Hold Office  

In the event that the Option Holder holds his or her Option as a Director of the Corporation and such Option Holder ceases to be a Director of the Corporation
other than by reason of death or permanent disability, the Expiry Date for any vested portion or portions of the Option will be, unless otherwise provided for in the Option Certificate, three years following the date that the Option Holder ceases to
be a Director of the Corporation (but not later than the Fixed Expiry Date for such Option) unless the Option Holder ceases to be a Director of the Corporation as a result of: 
  

	 	(i)	 ceasing to meet the qualifications required under applicable laws; 

 

	 	(ii)	 being removed from office in accordance with applicable laws; or 

 

	 	(iii)	 an order made by any Regulatory Authority having jurisdiction to so order, 

  
 5 

 in which case the Expiry Date will be the date that the Option Holder ceases to be a Director of the
Corporation. The Expiry Date for any unvested portion of the Option will be the date that the Option Holder ceases to be a Director of the Corporation. 
  

	 	(d)	 Ceasing to be Employee  

In the event that the Option Holder holds his or her Option as an Employee of the Corporation and such Option Holder ceases to be an Employee of the
Corporation other than by reason of death or permanent disability, the Expiry Date of any vested portion or portions of the Option will be the 90th day following the Termination Date (but not later than the Fixed Expiry Date for such Option) unless
the Option Holder ceases to be an Employee of the Corporation as a result of: 
  

	 	(i)	 termination of employment for Cause; or 

 

	 	(ii)	 an order made by any Regulatory Authority having jurisdiction to so order, 

in which case the Expiry Date will be the Termination Date. The Expiry Date for any unvested portion of the Option will be the Termination Date. 

 

	 	(e)	 Initial Public Offering  

Prior to completion of an IPO, the Board or the Regulatory Authorities or the underwriter may require that there be no outstanding Options and the Corporation
may deliver a notice to the Option Holder to this effect, in which case the unvested portion of the Option held by the Option Holder, if any, will immediately vest and the Expiry Date of the Option will be the 30th day following the date of the
notice. In the event that the Corporation does not complete the IPO, the Corporation will, to the extent reasonably practicable, grant to the Option Holder an Option equivalent (including the original vesting terms, if any) to the Option cancelled
or exercised, provided that in the case of an Option that was exercised, the Option Holder surrenders for cancellation the Common Shares acquired upon the exercise of the Option. This subsection 3.4(e) shall only apply if the Board or the Regulatory
Authorities or the underwriter requires that there be no outstanding Options in the event of an IPO. If there is no such requirement, all Options granted under the Plan shall survive the IPO and shall continue to be governed by the terms of this
Plan. In addition, this subsection 3.4(e) shall only apply to Option Holders who have held Options for a minimum of two months prior to the notice of the IPO. Unvested Options of Option Holders who have not been Option Holders for the minimum period
of two months will expire, terminate and be cancelled in the event of an IPO. 
  

	 	(f)	 Substantial Sale  

If security holders of the Corporation (the “Selling Shareholders”) have agreed to Transfer to a Person, or Persons acting jointly or in
concert, (a “Purchaser”), Equity Securities representing more than 66 2/3% of the Common Shares (a “Substantial Sale”) and the Purchaser also offers to buy the Options of an Option Holder, then the Option 

Holder must sell his or her Options to the Purchaser at a price equal to: 
  

					
	The number of Shares then Exercisable under the Option	  	X	  	The price per Share being paid by the Purchaser to the Selling Shareholder minus the exercise price per Share under the Option

 and on otherwise similar terms and conditions as are applicable under the Substantial Sale. If the Selling Shareholders have
agreed to sell Equity Securities which are convertible into Shares only (“Convertible Shares”), the price per Share applicable in the above formula will be calculated on an as converted basis (and if there is more than one
conversion rate applicable to different classes or series of Convertible Shares outstanding, the conversion will be computed on a pro rata basis based upon the ratio of the number of Shares which holders of each class or series of Convertible Shares
may acquire to the total number of Shares which all holders of all classes and series of Convertible Shares may acquire). 

  
 6 

 If the Purchaser offers to buy the Options of an Option Holder and the Option Holder does not sell the
Option Holder’s Options to the Purchaser as contemplated above, then that Option Holder’s Options will expire, terminate and be cancelled on completion of the Substantial Sale. 

Notwithstanding any term contained in the Plan, the Board may in its discretion and without approval of the Corporation’s shareholders (a) extend
the Expiry Date of any Option that is not an ISO, provided that in no case will an Option be exercisable later than the Fixed Expiry Date of such Option; or (b) alter or change the vesting terms applicable to an Option. 

Notwithstanding any term contained in the Plan, the Board may in its discretion and without approval of the Corporation’s shareholders (a) extend
the Expiry Date of any Schedule D Option that is not an ISO, provided that in no case, will a Schedule D Option be exercisable later than the fourteenth anniversary of the Award Date of the Schedule D Option; or (b) alter or change the vesting
terms applicable to a Schedule D Option. If the Board extends the Expiry Date of a Schedule D Option then the Expiry Date of the Schedule D Option will be the earlier of the date so fixed by the Board or the date established, if applicable, in
subsections 3.4 (a) to (f) provided that the Board may further extend the Expiry Date in its discretion without approval of the Corporation’s shareholders (unless required by the Regulatory Authorities) to a date not later than the
fourteenth anniversary of the Award Date of the Schedule D Option. 
  

	3.5	 Exercise Price  

The price at which an Option Holder may purchase a Common Share upon the exercise of an Option (including for greater certainty, a Net Settlement pursuant to
the terms of section 4.6 hereof) will be as set forth in the Option Certificate issued in respect of such Option and in any event will not be less than the Market Value of the Common Shares as of the Award Date. The Market Value of the Common Shares
for a particular Award Date will be determined as follows: 
  

	 	(a)	 for each organized trading facility on which the Common Shares are listed, Market Value will be determined by a
resolution of the Board and must be either: 

  

	 	(i)	 the closing trading price of the Common Shares on the last trading day immediately preceding the Award Date; or

  

	 	(ii)	 a value that is within the parameters set by the guidelines or policies of such organized trading facility;

  

	 	(b)	 if the Common Shares trade on an organized trading facility outside of Canada, then the Market Value determined
for that organized trading facility will be converted into Canadian dollars at a conversion rate determined by the Administrator having regard for the published conversion rates as of the Award Date; 

 

	 	(c)	 if the Common Shares are listed on more than one organized trading facility, then Market Value will be the
greatest of the Market Values determined for each organized trading facility on which those Common Shares are listed as determined for each organized trading facility in accordance with subsections (a) and (b) above; 

 

	 	(d)	 if the Common Shares are listed on one or more organized trading facility but have not traded during the ten
trading day period immediately preceding the Award Date, then the Market Value will be, subject to the necessary approvals of the applicable Regulatory Authorities, such value as is determined by resolution of the Board; and 

 

	 	(e)	 if the Common Shares are not listed on any organized trading facility, then the Market Value will be, subject
to the necessary approvals of the applicable Regulatory Authorities, such value as is determined by the Board. 

  
 7 

 Notwithstanding anything else contained herein, in no case will the Market Value be less than the minimum
prescribed by each of the organized trading facilities as would apply to the Award Date in question. For awards of Options to U.S. Option Holders, Market Value shall be determined in a manner consistent with the requirements of U.S. Treasury
Regulation 1.409A-1(b)(5)(iv)(A) or (B), as applicable. 
  

	3.6	 Additional Terms  

Subject to all applicable securities laws and regulations and the rules and policies of all applicable Regulatory Authorities, the Board may attach other terms
and conditions to the grant of a particular Option, such terms and conditions to be referred to in a schedule attached to the Option Certificate. These terms and conditions may include, but are not necessarily limited to, the following: 

 

	 	(a)	 providing that an Option expires on a date other than as provided for herein, provided that in no case will an
Option be exercisable later than the tenth anniversary of the Award Date of the Option (other than with respect to Schedule D Options); 

  

	 	(b)	 providing that a portion or portions of an Option vest after certain periods of time or upon the occurrence of
certain events, or expire after certain periods of time or upon the occurrence of certain events other than as provided for herein; and 

  

	 	(c)	 providing that an Option be exercisable immediately, in full, notwithstanding that it has vesting provisions,
upon the occurrence of certain events, such as a friendly or hostile takeover bid for the Corporation. 

  

	3.7	 Going Public Agreements  

If the Corporation proceeds to list its Shares on a public stock exchange or commences a public offering, each Option Holder will promptly enter into all such
escrow, pooling or other agreements as are required by the securities regulatory authorities, the exchange, the agents or the underwriters in connection with such listing or public offering. 

 

	3.8	 Assignment of Options  

Options may not be assigned or transferred, provided however that the Personal Representative of an Option Holder may, to the extent permitted by section 4.1
or section 4.6, exercise the Option within the Exercise Period. 
  

	3.9	 Adjustments  

If prior to the complete exercise of an Option (including for greater certainty, a Net Settlement pursuant to the terms of section 4.6 hereof) the Common
Shares are consolidated, subdivided, converted, exchanged or reclassified or in any way substituted for (collectively, the “Event”), an Option, to the extent that it has not been exercised, will be adjusted by the Board in
accordance with such Event in the manner the Board deems appropriate. No fractional Common Shares will be issued upon the exercise of an Option and accordingly, if as a result of the Event, an Option Holder would become entitled to a fractional
Common Share, such Option Holder will have the right to purchase only the next lowest whole number of Common Shares and no payment or other adjustment will be made with respect to the fractional interest so disregarded. 

 

	3.10	 Option Grant and Vesting Terms  

Unless otherwise determined by the Board in accordance with the terms and conditions of this Plan, Options will be granted by the Board and an Option granted
to an Employee will vest over a four year period as follows: 
  

	 	(a)	 25% of such Option will vest on the first anniversary of the commencement of such service; and

  

	 	(b)	 on the last day of each month thereafter, a further 1/36 of the total number of Options remaining will vest.

  
 8 

 For clarity, the Board may deviate from the terms of this Section 3.4 and Section 3.10 with
respect to the grant of Options provided that such grant is made in accordance with the other terms of this Plan. 
  

	3.11	 Incentive Stock Options  

Any Option granted under this Plan to an Employee who is (1) a citizen or resident of the United States (including its territories, possessions and all
areas subject to the jurisdiction) and (2) an “employee” with respect to the Corporation within the meaning of Section 422(a)(2) of the Internal Revenue Code of 1986, as amended, of the United States (the “Code”)
and the Treasury Regulations promulgated thereunder, as described more fully below (a “U.S. Option Holder”), including Directors who meet such requirements, may be an incentive stock option (an “ISO”) within the
meaning of Section 422 of the Code, but only if so designated by the Corporation in the applicable Option Certificate. No provision of this Plan, as it may be applied to a U.S. Option Holder with respect to Options which are designated as ISOs,
shall be construed or applied so as to be inconsistent with any provision of Section 422 of the Code or the Treasury Regulations thereunder. Grants of Options to U.S. Option Holders which are not designated as or otherwise do not qualify as
ISOs will be treated as nonstatutory stock options for U.S. federal tax purposes. Notwithstanding anything in this Plan contained to the contrary, the following provisions shall apply to Options designated as ISOs granted to any U.S. Option Holder:

  

	 	(a)	 ISOs shall only be granted to individual U.S. Option Holders who are, at the time of grant, employees of the
Corporation (or any parent corporation or subsidiary corporation thereof) within the meaning of Section 423(e) or 424(f) of the Code, respectively; 

  

	 	(b)	 the aggregate Market Value (determined as of the Award Date of the ISO) of the Common Shares subject to ISOs
exercisable for the first time by a U.S. Option Holder during any calendar year under this Plan and all other stock option plans, within the meaning of Section 422 of the Code, of the Corporation shall not exceed One Hundred Thousand Dollars in
U.S. funds (U.S. $100,000); 

  

	 	(c)	 the Exercise Price for Common Shares under each ISO granted to a U.S. Option Holder pursuant to this Plan
shall, except as set forth in clause (e) below), be not less than the Market Value of the Common Shares as of the Award Date, as determined pursuant to section 3.5 of this Plan (unless such ISO is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code); 

  

	 	(d)	 the ISO shall not be transferable by the U.S. Option Holder otherwise than by will or the laws of descent and
distribution and shall be exercisable during the U.S. Option Holder’s lifetime only by the U.S. Option Holder; 

  

	 	(e)	 if any U.S. Option Holder to whom an ISO is to be awarded under this Plan at the Award Date of such ISO is the
owner of shares possessing more than ten percent (10%) of the total combined voting power of all classes of shares of the Corporation (determined in accordance with Section 422(b)(6) of the Code, then the following special provisions shall be
applicable to the ISO granted to such individual: 

  

	 	(i)	 the Exercise Price (per share) subject to such ISO shall not be less than one hundred ten percent (110%) of the
Market Value of one Common Share at the Award Date; and 

  

	 	(ii)	 the Exercise Period shall not exceed five (5) years from the Award Date; 

 

	 	(f)	 no ISO may be granted hereunder to a U.S. Option Holder following the expiration of ten (10) years after
November 9, 2016 (subject to shareholder approval); 

  

	 	(g)	 no ISO granted to a U.S. Option Holder under this Plan shall become exercisable unless and until the Plan shall
have been approved by the shareholders of the Corporation; and 

  
 9 

	 	(h)	 notwithstanding anything in this Plan contained to the contrary, the maximum number of Common Shares which may
be issued under this Plan as ISOs shall be 500,000 Common Shares. 

 ARTICLE 4 

EXERCISE OF OPTION 
  

	4.1	 Exercise of Option  

An Option may be exercised only by the Option Holder or the Personal Representative of the Option Holder. An Option Holder or the Personal Representative of
the Option Holder may exercise the vested portion or portions of an Option in whole or in part at any time or from time to time during the Exercise Period up to 5:00 p.m. local time in Vancouver, British Columbia on the Expiry Date by delivering to
the Administrator an Exercise Notice, the applicable Option Certificate and a certified cheque or bank draft payable to “Zymeworks Inc.” in an amount equal to the aggregate Exercise Price of the Common Shares to be purchased pursuant to
the exercise of the Option. 
  

	4.2	 Subscription Agreement  

It is a condition of the Plan that an Option Holder who wishes to exercise an Option (including for greater certainty, a Net Settlement pursuant to the terms
of section 4.6 hereof) in whole or in part prior to the completion of an IPO must, if required by the Board, be a party to a subscription agreement with the Corporation substantially in the form required by the Board. The subscription agreement
establishes certain rights and obligations with respect to the holding and sale of all Common Shares purchased from time to time by the Option Holder upon the exercise of Options. 

 

	4.3	 Execution of Shareholder’s Agreement  

As soon as practicable following the receipt of the Exercise Notice or Notice of Net Settlement, as applicable, the Administrator will establish whether the
Option Holder is a party to a shareholder’s agreement with the Corporation. If the Option Holder is not a party to a shareholder’s agreement and, if so required by the Board, the Administrator will cause to be delivered to the Option
Holder a shareholder’s agreement substantially in the form set out as 
 Schedule “C” hereto for execution by the Option Holder and return to
the Administrator. 
  

	4.4	 Issue of Share Certificates  

As soon as practicable following the receipt of the Exercise Notice or Notice of Net Settlement, as applicable (or following receipt of the executed
shareholder’s agreement, if required), the Administrator will, in his sole discretion, either cause to be delivered to the Option Holder a certificate for the Common Shares purchased by the Option Holder or cause to be delivered to the Option
Holder a copy of such certificate and the original of such certificate will be placed in the minute book of the Corporation. If the number of Common Shares in respect of which the Option was exercised (including for greater certainty, a Net
Settlement pursuant to the terms of section 4.6 hereof) is less than the number of Common Shares subject to the Option Certificate surrendered, the Administrator will forward a new Option Certificate to the Option Holder concurrently with delivery
of the share certificate for the balance of the Common Shares available under the Option. 
  

	4.5	 Condition of Issue  

The Options and the issue of Common Shares by the Corporation pursuant to the exercise of Options (including for greater certainty, a Net Settlement pursuant
to the terms of section 4.6 hereof) are subject to the terms and conditions of the Plan and compliance with the rules and policies of all applicable Regulatory Authorities with respect to the granting of such Options and the issuance and
distribution of such Common Shares, and to all applicable securities laws and regulations. The Option Holder agrees to comply with all such laws, regulations, rules and policies and agrees to furnish to the Corporation any information, reports or
undertakings required to comply with, and to fully cooperate with, the Corporation in complying with such laws, regulations, rules and policies. 

  
 10 

	4.6	 Net Settlement  

In lieu of exercising the Option by delivery of the Exercise Notice along with aggregate Exercise Price as provided in Section 4.1 hereof, with the prior
written approval of the Corporation, which may be granted or withheld in its sole discretion, any Option Holder may elect to transfer and dispose of a specified number of vested Options to the Corporation in exchange for a number of Common Shares
having a fair market value equal to the intrinsic value of such vested Options disposed of and transferred to the Corporation (“Net Settlement”) by completing the Notice of Net Settlement set out as Schedule “B-1”. The decision of whether or not to permit Net Settlement for any Option is in the sole discretion of the Corporation and will be made on a case by case basis. Upon the Net Settlement of Options (the
“Disposed Options”), the Corporation shall deliver to the Option Holder, that number of fully paid and non-assessable Common Shares (“X”) equal to the number of Common Shares that
may be acquired by the Disposed Options (“Y”) multiplied by the quotient obtained by dividing the result of the Market Value of one Common Share (“B”) less the Exercise Price per Common Share (“A”) by the Market Value
of one Common Share (“B”). Expressed as a formula, such number of Common Shares shall be computed as follows: 
  

			
	X = (Y) x	  	(B -A)
	  	  

	  	(B)

 No fractional Common Shares shall be issuable upon the Net Settlement of Options; such Common Shares will be rounded down to
the nearest whole number. 
 ARTICLE 5 

ADMINISTRATION 
  

	5.1	 Administration  

The Plan will be administered by the Administrator on the instructions of the Board. The Compensation Committee may, from time to time, recommend to the Board
how the Plan should be administered. The Board may make, amend and repeal at any time and from time to time such policies not inconsistent with the Plan as it may deem necessary or advisable for the proper administration and operation of the Plan
and such policies will form part of the Plan. The Board may delegate to the Administrator or any director, officer or employee of the Corporation such administrative duties and powers as it may see fit. 

 

	5.2	 Interpretation  

The interpretation by the Board of any of the provisions of the Plan and any determination by it pursuant thereto will be final and conclusive and will not be
subject to any dispute by any Option Holder. No member of the Board or any person acting pursuant to authority delegated by it hereunder will be liable for any action or determination in connection with the Plan made or taken in good faith and each
member of the Board and each such person will be entitled to indemnification with respect to any such action or determination in the manner provided for by the Corporation. 
  

	5.3	 Withholding. 

The Corporation may withhold from any amount payable to an Option Holder, either under this Plan or otherwise, such amount as it reasonably believes is
necessary to enable the Corporation to comply with the applicable requirements of any U.S. or non-U.S. federal, provincial, or local law, or any administrative policy of any applicable tax authority, relating
to the withholding of tax or any other required deductions with respect to Options (“Withholding Obligations”). The Corporation may also satisfy any liability for any such Withholding Obligations, on such terms and conditions as the
Corporation may determine in its discretion, by requiring an Option Holder as a condition to the exercise of any Options or acquisition of Common Shares pursuant to the Net Settlement provisions of Section 4.6, to make such arrangements as the
Corporation may require so that the Corporation can satisfy such Withholding Obligations including, without limitation, (a) requiring the Option Holder to remit to the Corporation in advance, or reimburse the Corporation for, any such
Withholding Obligations or, if the Common Shares are listed on an organized trading facility, (b) selling on the Option Holder’s behalf, or requiring the Option Holder to sell, any Common Shares acquired by the Option Holder under the
Plan, or retaining any amount which would otherwise be payable to the Option Holder in connection with any such sale. 

  
 11 

 ARTICLE 6 

AMENDMENT, TERMINATION AND NOTICE 
  

	6.1	 Prospective Amendment  

The Board may, from time to time and in accordance with any third party obligations of the Corporation, amend the Plan and the terms and conditions of any
Option thereafter to be granted and, without limiting the generality of the foregoing, may make such amendment for the purpose of meeting any changes in any relevant law, rule or regulation applicable to the Plan, any Option or the Common Shares, or
for any other purpose which may be permitted by all relevant laws, regulations, rules and policies provided always that any such amendment (with the exception of an amendment pursuant to section 3.4(f)) will not alter the terms or conditions of any
Option or impair any right of any Option Holder pursuant to any Option awarded prior to such amendment. Notwithstanding the foregoing, the Board may not amend any provisions of the Plan or any Option in a manner that would cause Options theretofore
issued as ISOs to cease to qualify as ISOs without the consent of the affected Option Holder. 
  

	6.2	 Retrospective Amendment  

The Board may from time to time retrospectively amend the Plan and, with the consent of the affected Option Holders, retrospectively amend the terms and
conditions of any Options which have been previously granted. 
  

	6.3	 Approvals  

The Plan and any amendments hereto are subject to all necessary approvals of the applicable Regulatory Authorities. 

 

	6.4	 Termination  

The Board may terminate the Plan at any time provided that such termination will not alter the terms or conditions of any Option or impair any right of any
Option Holder pursuant to any Option awarded prior to the date of such termination which will continue to be governed by the provisions of the Plan. 
  

	6.5	 Agreement  

The Corporation and every Option awarded hereunder will be bound by and subject to the terms and conditions of the Plan. By accepting an Option granted
hereunder, the Option Holder has expressly agreed with the Corporation to be bound by the terms and conditions of the Plan. 
  

	6.6	 Notice  

Any notice or other communication contemplated under the Plan to be given by the Corporation to an Option Holder will be given by the Corporation delivering or
faxing the notice to the Option Holder at the last address for the Option Holder in the Corporation’s records. Any such notice will be deemed to have been given on the date on which it was delivered, or in the case of fax, the next business day
after transmission. An Option Holder may, at any time, advise the Corporation of a change in the Option Holder’s address or fax number. 

  
 12 

 SCHEDULE “A” 

ZYMEWORKS INC. 
 STOCK OPTION
PLAN 
 OPTION CERTIFICATE 

This Certificate is issued pursuant to the provisions of the Zymeworks Inc. (the “Corporation”) stock option plan (the
“Plan”) and evidences that ● is the holder (the “Option Holder”) of an option (the “Option”) to purchase up to ● Common shares without par value (the “Common Shares”) in
the capital stock of the Corporation. The Exercise Price of the Option is Cdn. $● per Common Share. The Option [is intended to be an ISO][does not constitute and ISO] (as defined in the Plan). 

Subject to the provisions of the Plan: 

the Award Date of the Option is ●, 200●; and 

the Fixed Expiry Date of the Option is ●, 200●. 

The vested portion or portions of the Option may be exercised at any time and from time to time from and including the Award Date through to
5:00 p.m. local time in Vancouver, British Columbia on the Expiry Date by delivering to the Administrator of the Plan an Exercise Notice, in the form provided in the Plan, together with this Certificate and (i) a certified cheque or bank draft
payable to “Zymeworks Inc.” in an amount equal to the aggregate of the Exercise Price of the Common Shares in respect of which the Option is being exercised or (ii) a Notice of Net Settlement in the form of Schedule “B-1” to the Plan. 
 Upon receiving the Exercise Notice, the Administrator may deliver a
shareholder’s agreement substantially in the form set out as Schedule “C” to the Plan to the Option Holder. The Option and the issue of Common Shares by the Corporation pursuant to the exercise of the Option are subject to the Option
Holder signing and returning to the Administrator a copy of the shareholder’s agreement, if so required by the Administrator. 
 This
Certificate and the Option evidenced hereby are not assignable, transferable or negotiable and are subject to the detailed terms and conditions contained in the Plan, the terms and conditions of which the Option Holder hereby expressly agrees with
the Corporation to be bound by. This Certificate is issued for convenience only and in the case of any dispute with regard to any matter in respect hereof, the provisions of the Plan and the records of the Corporation will prevail. 

The Option is also subject to the terms and conditions contained in the schedules, if any, attached hereto. All terms not otherwise defined in
this Certificate will have the meanings given to them under the Plan. 
 Dated this ● day of ●, 200●. 

 

					
		  	Zymeworks Inc.	  	
			
	Per:	  	  
	  	
			
		  	Administrator, Stock Option Plan	  	
			
		  	Zymeworks Inc.	  	

  
 13 

 OPTION CERTIFICATE - SCHEDULE 

The additional terms and conditions attached to the Option represented by this Certificate are as follows: 

1.    [Vesting Provisions] 
  

					
		  	Zymeworks Inc.	  	
			
	 Per:
	  	  
	  	
			
		  	Administrator, Stock Option Plan	  	
			
		  	Zymeworks Inc.	  	

  
 14 

 SCHEDULE “B” 

ZYMEWORKS INC. 
 STOCK OPTION
PLAN 
  

					
		  	NOTICE OF EXERCISE OF OPTION	  	
			
	TO:	  	The Administrator, Stock Option Plan	  	
			
		  	Zymeworks Inc.	  	
			
		  	540 - 1385 West 8th Avenue	  	
			
		  	Vancouver, British Columbia, V6H 3V9	  	

 The undersigned hereby irrevocably gives notice, pursuant to the Zymeworks Inc. stock option plan (the
“Plan”), of the exercise of the Option to acquire and hereby subscribes for (cross out inapplicable item): 
 all of
the Common Shares; or 
 of the Common Shares, 

which are the subject of the Option Certificate attached hereto. 

The undersigned tenders herewith a certified cheque or bank draft (circle one) payable to “Zymeworks Inc.” in an amount equal
to the aggregate Exercise Price of the aforesaid Common Shares and directs the Corporation to issue the certificate evidencing said Common Shares in the name of the undersigned to be mailed to the undersigned at the following address: 

The undersigned acknowledges that upon receiving the Exercise Notice, the Administrator may deliver a shareholder’s agreement
substantially in the form set out as Schedule “C” to the Plan to the undersigned. The Option and the issue of Common Shares by the Corporation pursuant to the exercise of the Option are subject to the undersigned signing and returning to
the Administrator a copy of the shareholder’s agreement, if so required by the Administrator. 
 By executing this Notice of Exercise of
Option the undersigned hereby confirms that the undersigned has read the Plan and agrees to be bound by the provisions of the Plan, including without limitation section 4.2. All terms not otherwise defined in this Notice of Exercise of Option will
have the meanings given to them under the Option Certificate. 
 DATED the day of , 

 

					
		  	  
	  	
		  	Signature of Option Holder	  	
			
		  	  
	  	
		  	Name of Option Holder (please print)	  	

  
 15 

 SCHEDULE “B-1” 

ZYMEWORKS INC. 
 STOCK OPTION
PLAN 
 NOTICE OF NET SETTLEMENT 

Date: 
  

					
	TO:	  	The Administrator, Stock Option Plan	  	
			
		  	Zymeworks Inc.	  	
			
		  	540 - 1385 West 8th Avenue	  	
			
		  	Vancouver, British Columbia, V6H 3V9	  	

 The undersigned hereby requests, pursuant to the Zymeworks Inc. (the “Corporation”) stock
option plan (the “Plan”), the Corporation accept the transfer, disposition and surrender of the right to exercise vested Options in exchange for, subject to the terms of the Plan and the Options, the number of Common Shares
representing the fair market value of the Options disposed of and transferred to the Corporation pursuant to the net settlement provisions set out in Section 4.6 of the Plan (the “Net Settlement Provisions”). 

The undersigned, subject to the terms of the Plan and the Options, is requesting to receive the fair market value of the Options in Common
Shares pursuant to the Net Settlement Provisions. The undersigned directs the Corporation to issue the certificate evidencing said Common Shares in the name of the undersigned to be mailed to the undersigned at the following address: 

The undersigned acknowledges that upon receiving the Notice of Net Settlement, the Administrator may deliver a shareholder’s agreement
substantially in the form set out as Schedule “C” to the Plan to the undersigned. The Option and the issue of Common Shares by the Corporation pursuant to the exercise of the Option are subject to the undersigned signing and returning to
the Administrator a copy of the shareholder’s agreement, if so required by the Administrator. By executing this Notice of Net Settlement the undersigned hereby confirms that the undersigned has read the Plan and agrees to be bound by the
provisions of the Plan, including, without limitation section 4.2 and the withholding provisions in section 5.3 thereof. All terms not otherwise defined in this Notice of Net Settlement will have the meanings given to them under the Plan. 

  
 16 

 DATED the day of , 
  

					
		  	  
	  	
		  	 Signature of Option Holder
	  	
			
		  	  
	  	
		  	Name of Option Holder (please print)	  	

  
 17 

 SCHEDULE “C” 

ZYMEWORKS INC. 
 STOCK OPTION
PLAN 
 SHAREHOLDERS AGREEMENT 

Please see attached. 

  
 18

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