Zymeworks Reports Incentive Grant Under New York Stock Exchange Listed Business Manual

VANCOUVER, British Columbia & SEATTLE–(BUSINESS WIRE)–Zymeworks Inc. (NYSE: ZYME), a clinical-stage biopharmaceutical company developing multifunctional biotherapeutics, today reported, as required by the New York Stock Exchange Listed Company Manual Rule 303A.08 (the “NYSE Rule”), an incentive award for Mr. Kenneth Galbraith, the new chairman, president and chief executive officer of Zymeworks.

In accordance with the NYSE rule, Zymeworks approved the grant of the following stock award to Mr. Galbraith as a material incentive for Mr. Galbraith to join Zymeworks: Effective on the date his employment with Zymeworks began, a stock option to purchase 500,000 common shares of the company (the “Options”). The options have an exercise price per share of $14.97, which is equal to the closing price of the company’s common stock on January 14, 2022, and have a maximum term of 10 years. Mr. Galbraith’s employment with the Company began on January 15, 2022 (the “Start Date”).

The Options will vest over a period of four years as follows: (i) 1/4 of the Options will vest on the one-year anniversary of the Start Date and (ii) 1/36 of the remaining Options will vest on the the last day of each month following the one-year anniversary of the Start Date until all Options vest, subject to Mr. Galbraith’s survival. In addition, (i) if a change of control occurs and within 12 months of or within three months prior to such change of control, his employment by the Company will be terminated without cause or (ii) upon his death or disability, 100% of the unvested Options will vest in full upon termination of his employment or the date of his death or disability, as applicable.

The options were granted outside of the Company’s amended and restated stock option and stock compensation plan (the “Current Plan”) under the newly approved Zymeworks Inc. Inducement Stock Option and Stock Compensation Plan and the related option agreement, but are subject to terms generally consistent with those in the Current Plan, except with respect to such other terms intended to satisfy the NYSE inducement award exception.

About Zymeworks Inc.

Zymeworks is a clinical-stage biopharmaceutical company focused on developing next-generation multifunctional biotherapeutics. Zymeworks’ suite of therapeutic platforms and fully integrated drug development engine enable precise engineering of highly differentiated product candidates. Zymeworks’ lead clinical candidate, zanidatamab, is a novel Azymetric™ HER2-targeted bispecific antibody currently being evaluated in multiple Phase 1, Phase 2 and pivotal clinical trials worldwide as a targeted treatment option for patients with HER2-expressing solid tumors. Zymeworks’ second clinical candidate, ZW49, is a novel bispecific HER2-targeted antibody-drug conjugate currently in Phase 1 clinical development that combines zanidatamab’s unique design and antibody framework with Zymeworks’ proprietary ZymeLink™ linker and cytotoxin. Zymeworks also advances a deep preclinical pipeline in oncology (including immuno-oncology agents) and other therapeutic areas. In addition, its therapeutic platforms are leveraged through strategic partnerships with global biopharmaceutical companies. To learn more about our ongoing clinical trials, visit www.zymeworksclinicaltrials.com. For more information about Zymeworks, visit: www.zymeworks.com and follow @ZymeworksInc on Twitter.