Document:

Royalty Interest Assignment Agreement

 Exhibit 10.6 
 NOTE: Portions of this Exhibit are the subject of a Confidential Treatment Request by the Registrant to the Securities and Exchange Commission (the “Commission”). Such portions have been redacted and are marked with
“[***]” in place of the redacted language. The redacted information has been filed separately with the Commission. 
 ROYALTY
INTEREST ASSIGNMENT AGREEMENT 
 between 
 EPOCH BIOSCIENCES, INC. 
 as Assignor 
 and 
 DRUG ROYALTY LP2 
 as Assignee 
 March 28, 2008

 TABLE OF CONTENTS 
  

					
	 ARTICLE 1
 INTERPRETATION

			
	 1.1
	  	 Definitions
	  	1
	 1.2
	  	 Headings
	  	4
	 1.3
	  	 Number and Gender
	  	4
	 1.4
	  	 Entire Agreement
	  	4
	 1.5
	  	 Applicable Law; Waiver of Jury Trial
	  	5
	 1.6
	  	 Consent to Jurisdiction
	  	5
	 1.7
	  	 Currency
	  	5
	 1.8
	  	 Exhibits
	  	5
	
	 ARTICLE 2
 PURCHASE AND ASSUMPTION

			
	 2.1
	  	 Purchase of Assigned Interests
	  	6
	
	 ARTICLE 3
 PAYMENTS

	 3.1
	  	 Payment of Purchase Price
	  	6
	 3.2
	  	 Remittances of Royalties
	  	6
	 3.3
	  	 Offset
	  	6
	
	 ARTICLE 4
 REPRESENTATIONS AND WARRANTIES OF ASSIGNOR

			
	 4.1
	  	 Corporate Matters
	  	7
	 4.2
	  	 Title
	  	7
	 4.3
	  	 License Agreements
	  	8
	 4.4
	  	 Intellectual Property
	  	8
	 4.5
	  	 Absence of Conflicting Agreements
	  	9
	 4.6
	  	 Consents and Approvals
	  	9
	 4.7
	  	 Compliance with Applicable Law
	  	10
	 4.8
	  	 Litigation
	  	10
	 4.9
	  	 Survival
	  	10
	
	 ARTICLE 5
 REPRESENTATIONS AND WARRANTIES OF ASSIGNEE

			
	 5.1
	  	 Corporate Matters
	  	10
	 5.2
	  	 Consents and Approvals
	  	11
	 5.3
	  	 Absence of Conflicting Agreements
	  	11
	 5.4
	  	 Compliance with Applicable Law
	  	11
	 5.5
	  	 Litigation
	  	12
	 5.6
	  	 Survival
	  	12

  

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	 ARTICLE 6
 CLOSING

			
	 6.1
	  	 Assignee Deliveries
	  	12
	 6.2
	  	 Assignor Deliveries
	  	12
	
	 ARTICLE 7
 COVENANTS

			
	 7.1
	  	 License Agreement
	  	13
	 7.2
	  	 Maintenance and Access to Records
	  	14
	 7.3
	  	 Conduct of the Business
	  	14
	 7.4
	  	 True Sale
	  	15
	 7.5
	  	 Patent Obligations
	  	15
	 7.6
	  	 Certain Conduct
	  	16
	 7.7
	  	 Indemnities
	  	16
	 7.8
	  	 Third Party Claims Procedure
	  	16
	
	 ARTICLE 8
 GENERAL

			
	 8.1
	  	 Confidentiality
	  	17
	 8.2
	  	 Amendment
	  	17
	 8.3
	  	 Waiver of Rights
	  	17
	 8.4
	  	 Tender
	  	18
	 8.5
	  	 Expenses
	  	18
	 8.6
	  	 Notices
	  	18
	 8.7
	  	 Assignment
	  	19
	 8.8
	  	 Further Assurances
	  	20
	 8.9
	  	 Independent Parties
	  	20
	 8.10
	  	 Public Announcements
	  	20
	 8.11
	  	 Severability
	  	20
	 8.12
	  	 Counterparts
	  	21
	 8.13
	  	 Facsimile Execution
	  	21

  

					
	 Exhibit A
	 	-	  	License Agreement and Quencher Agreement
			
	 Exhibit B
	 	-	  	Patents and Patent Applications

  

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 ROYALTY INTEREST ASSIGNMENT AGREEMENT 
 THIS AGREEMENT is made and entered into as of March 28, 2008. 
 BETWEEN: 
 EPOCH BIOSCIENCES, INC., 
 a corporation organized and existing under the laws 
 of the State of Delaware 
 (hereinafter referred to as “Epoch” or “Assignor”) 
 - and - 
 DRUG ROYALTY
LP2, 
 a limited partnership organized and existing under 
 the laws of the State of Delaware 
 (hereinafter referred to as “Assignee”). 
 WHEREAS Assignor is a party to a Second Amended and Restated Collaboration, License and Supply Agreement with Applera Corporation (the
“Licensee”) dated as of August 17, 2000, as amended by the First Side Agreement dated October 31, 2001, the Amendment No. 1 to the Second Amended and Restated Collaboration, License and Supply Agreement dated
July 26, 2002 and Amendment No. 2 to the Second Amended and Restated Collaboration, License and Supply Agreement dated as of December 31, 2005 (collectively, the “License Agreement”); 
 AND WHEREAS Assignor wishes to sell, assign, convey and transfer to Assignee, and Assignee wishes to purchase from Assignor, certain rights under
the License Agreement, upon and subject to the terms and conditions hereinafter set forth; 
 NOW THEREFORE for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE 1 

 INTERPRETATION 
  

	1.1	Definitions 

 In this Agreement: 

“Acquired Royalty Payments” has the meaning specified in Section 2.1(a); 

 “Affiliate” means a Person that directly, or indirectly through one or more
intermediaries, controls or is controlled by, or is under common control with, the Person specified; 
 “Agreement” means
this Royalty Interest Assignment Agreement, the recitals, all attached exhibits and schedules, and any agreement, exhibit or schedule supplementing or amending this Agreement. All uses of the words “hereto”, “herein,”
“hereof,” “hereby” and “hereunder” and similar expressions refer to this Agreement and not to any particular section or portion of it; 
 “Applicable Law” means, in respect of any Person, property, transaction or event, any statute, law, ordinance, rule, regulation, regulatory policy, order, judgment or decree applicable to that Person,
property, transaction or event; 
 “Assigned Interests” has the meaning specified in Section 2.1; 
 “Assignee” has the meaning specified in the introduction to this Agreement; 
 “Assignor” has the meaning specified in the introduction to this Agreement; 
 “Authorization” has the meaning specified in Section 6.2(d); 
 “Business Day” means any day of the week other than a Saturday, Sunday or a day observed as a statutory or civic holiday in New York, New
York; 
 “Closing” means the consummation of the transactions contemplated by this Agreement, including the transfer to
Assignee of all of Assignor’s right, title and interest in and to the Assigned Interests; 
 “Closing Document” means
any document, instrument, undertaking or agreement made or delivered pursuant to or in connection with this Agreement; 
 “control” means, in respect of a legal Person, direct or indirect legal or beneficial ownership of more than 50% of the voting interests in or the equity or participation interests in, or the right to appoint more than 50%
of the directors or the management of, such Person; 
 “Effective Date” means the date hereof; 
 “Encumbrances” means liens, charges, security interests, mortgages, options, privileges, pledges, trusts or deemed trusts (whether
contractual, statutory or otherwise) and any other encumbrance, right or claim of any other person of any kind whatsoever; 
 “Governmental Agency” means any domestic or foreign government whether federal, state, provincial or municipal and any governmental agency, governmental authority, governmental tribunal or governmental commission of any
kind whatsoever; 
  

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 “including”, when used herein or in any Closing Document, means “including without
limitation” and shall not be construed to limit any general statement which it follows to the specific or similar items or matters immediately following it; 
 “Know-How” means Licensed Know-How, as that term is defined in the License Agreement; 
 “License Agreement” has the meaning specified in the recitals to this Agreement; 
 “Licensee” has
the meaning specified in the recitals to this Agreement; 
 “Licensee Acknowledgment” has the meaning specified in
Section 6.2(a); 
 “Licensee Direction” means a written direction of Assignor and Assignee to Licensee to pay the
Acquired Royalty Payments to Assignee; 
 “Notice” has the meaning specified in Section 8.6; 
 “Parties” means Epoch and Assignee, collectively, and “Party” means either one of them; 
 “Patents” means the Licensed Patents and Related Patents, as those terms are defined in the License Agreement, including those Patents
and patent applications set forth on Exhibit B attached hereto; 
 “Permitted Encumbrances” means (i) any license in
intellectual property granted prior to the date hereof, or granted after the date hereof in accordance with Section 7.5(b)(iii), by Assignor, including patents and trademarks held by Assignor, that does not interfere with, or cause a diminution
of value of, the Assigned Interests, and (ii) the Security Interest; 
 “Person” or “person” includes
an individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, joint venture, association, trust, unincorporated organization, or any other legal entity; 
 “Product” means a Licensed Product, as that term is defined in the License Agreement; 
 “Purchase Price” has the meaning specified in Section 3.1; 
 “Quencher Agreement” means the license and supply agreement between Epoch and the Licensee dated as of September 2, 2003 in respect
of Epoch’s EclipseTM product as amended by Amendment No. 1 to the Quencher License and Supply Agreement dated September 2, 2003 and as further amended by Amendment No. 2 dated December 31, 2005, as such agreement may be
further amended from time to time; 
 “Reports” means (i) any notices of breach of the License Agreement and any notices
of infringement or claims in respect of the Patents and Know-How and (ii) all reports, statements, calculations and certifications referenced in and deliverable under Section 

  

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5.06 of the License Agreement relating to the calculation and payment of the Royalties, and for greater certainty “Reports” does not include any of
the foregoing documents or any information in any of the foregoing documents that does not relate to the calculation and payment of Royalties, such as, for example, the selling price of the Bare Probes for Large Sale Orders under Section 6.02
of the License Agreement; 
 “Royalties” means all of the royalties payable to Epoch under the License Agreement in respect
of (i) Net Sales (as defined in the License Agreement) made and (ii) Net Revenues (as defined in the License Agreement) received, as calculated in accordance with Article 5 and Section 4.02 respectively of the License Agreement,
together with any collections or recoveries receivable or lump sum payments payable in lieu thereof including in connection with (a) any litigation to enforce the License Agreement, the Patents or the Know-How, (b) any interest payable
thereon pursuant to Section 5.07 of the License Agreement, and (c) any deficiency payment plus interest thereon as described in Section 5.10 of the License Agreement; 
 “Security Agreement” has the meaning specified in Section 6.2(c); 
 “Security Interest” means the security interest granted pursuant to the Security Agreement; 
 “Third Party” means any Person other than Epoch or Assignee, and their respective Affiliates and Assignee’s co-investors;

 “Transmission” means any electronic means of sending messages, including facsimile transmission, which produces a paper
record; and 
 “USPTO” mean the United States Patent and Trademark office. 
  

	1.2	Headings 

 The division of this Agreement
into articles, sections and subsections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement. Unless otherwise specified, references in this Agreement to
Sections, Exhibits and Schedules are references to sections of and schedules and exhibits to this Agreement. 
  

	1.3	Number and Gender 

 Unless otherwise
specified in this Agreement, words in the singular number include the plural and vice-versa and words in one gender include all genders. 
  

	1.4	Entire Agreement 

 This Agreement, together
with the Closing Documents, constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes all prior agreements, negotiations, discussions and understandings, written or oral. There are no
representations, warranties, conditions, other agreements or acknowledgements, whether direct 

  

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or collateral, or express or implied, that form part of or affect this Agreement, or which induced any Party to enter into this Agreement or on which
reliance is placed by any Party, except as specifically set forth in this Agreement or in the Closing Documents. 
  

	1.5	Applicable Law; Waiver of Jury Trial 

 This
Agreement shall be governed by, and interpreted and enforced in accordance with, the laws of the State of New York, without giving effect to the principles of conflicts of law thereof except as set forth in Section 5-1401 of the New York
General Obligations Law. 
 EACH PARTY HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT
TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION HEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY
AND VOLUNTARILY BY EACH PARTY, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING
AS CONCLUSIVE EVIDENCE OF THIS WAIVER. 
  

	1.6	Consent to Jurisdiction 

 Each of Assignor
and Assignee (a) hereby irrevocably submits to the jurisdiction of the United States District Court for the Southern District of New York for the purposes of any suit, action or proceeding arising out of or relating to this Agreement and to the
extent that such United States district court lacks jurisdiction despite the consent herein, to the jurisdiction of the courts of the State of New York sitting in New York County and the appellate courts therefrom, and (b) hereby waives, and
agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action
or proceeding is improper. Each of Assignor and Assignee consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 1.6 shall affect or limit any right to serve process in any other manner permitted by law. 
  

	1.7	Currency 

 Unless otherwise specified in this
Agreement, all statements of or references to monetary amounts in this Agreement are references to the lawful currency of the United States of America and all sums of money to be paid or calculated pursuant to this Agreement shall be calculated and
paid in United States currency. 
  

	1.8	Exhibits 

 The Exhibits attached hereto form
an integral part of this Agreement. 
  

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 ARTICLE 2 
 PURCHASE AND ASSUMPTION 
  

	2.1	Purchase of Assigned Interests 

 Assignor
hereby sells, assigns and transfers to Assignee and Assignee hereby purchases from Assignor an undivided interest in all right, title and interest of Assignor in and to the rights set forth in Subsections (a) and (b) below (collectively,
the “Assigned Interests”): 
  

	 	(a)	the right to receive one hundred percent (100%) of the Royalties from and after January 1, 2012 (the “Acquired Royalty Payments”); and

  

	 	(b)	the right to receive any and all Reports. 

 ARTICLE 3 
 PAYMENTS 
  

	3.1	Payment of Purchase Price 

 In consideration
for the Assigned Interests, Assignee shall concurrent with the execution of this Agreement pay to Epoch $10,000,000 (the “Purchase Price”). All payments shall be paid to or to the order of Epoch by wire transfer of same day funds to
the bank account designated by Epoch or its authorized agent. 
  

	3.2	Remittances of Royalties 

 (a) If,
notwithstanding the terms of the Licensee Direction, at any time Assignor receives or has received any amount in respect of an Acquired Royalty Payment, Assignor shall be deemed to be holding such funds in trust for Assignee and shall forthwith upon
receipt of such funds, deliver the same to Assignee without deduction or set-off. 
 (b) If at any time Assignee receives or has received any
payment or other monies relating to the License Agreement that are not in respect of the Assigned Interests or that Assignee is not otherwise entitled to in connection with the subject matter of this Agreement, Assignee shall be deemed to be holding
such funds in trust for Assignor and shall forthwith upon receipt of such funds, deliver the same to Assignor without deduction or set-off. 
  

	3.3	Offset 

 (a) Assignor agrees that the
Assigned Interests and all payments in respect thereof shall be free of any claim as between Assignor and Licensee for offset, true up or deficiency, whether arising prior to or after the Effective Date and agrees to hold Assignee harmless in
respect of any such offset, true up or deficiency. 
 (b) If under the terms of the License Agreement, Licensee is entitled to reduce any
amount payable thereunder in respect of the Assigned Interests by amounts paid to Assignor in respect of the Quencher Agreement, Assignor agrees that any such reduction shall constitute a set-off under (a) above and shall hold Assignee harmless
in respect thereof. 
  

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 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES OF ASSIGNOR 
 Assignor represents and warrants as at the
Effective Date to Assignee as follows, and acknowledges that Assignee is relying on such representations and warranties in entering into this Agreement: 
  

	4.1	Corporate Matters 

 (a) Epoch is a
corporation duly incorporated and in good standing under the laws of the State of Delaware. 
 (b) Assignor has all necessary corporate
power, right and authority to carry on its business as it is presently conducted. 
 (c) Assignor has all necessary corporate power, right
and authority to execute and deliver, and to observe and perform its covenants and obligations under this Agreement, the License Agreement and each of the Closing Documents to which it is a party. 
 (d) Assignor has taken all corporate action necessary to authorize the execution and delivery of, and the observance and performance of its covenants and
obligations under this Agreement and the Closing Documents to which it is a party. 
 (e) This Agreement and each Closing Document to which
Assignor is a party has been or will be duly executed and delivered by Assignor, and this Agreement and each Closing Document to which Assignor is a party constitutes or will constitute a legal, valid and binding obligation of Assignor enforceable
against it in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors’ rights or by general principles of equity. 
 (f) Assignor is not, and will not be after giving effect to the transactions contemplated by this Agreement, insolvent, and no proceedings have been
taken or authorized by Assignor, or to the knowledge of Assignor by any other Person, with respect to the bankruptcy, insolvency, liquidation, dissolution or winding up of Assignor. 
  

	4.2	Title 

 (a) Assignor is the exclusive owner
of all legal and equitable title, free and clear of all Encumbrances (i) to the Assigned Interests, (ii) other than Permitted Encumbrances, to the Patents and (iii) to the Know-How. 
 (b) The License Agreement is free and clear of all Encumbrances other than Permitted Encumbrances granted by or imposed in respect of Assignor or, to the
knowledge of Assignor, the Licensee. 
  

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	4.3	License Agreements 

 (a) Each of the License
Agreement and the Quencher Agreement, a copy of each of which together with all amendments thereto is attached as Exhibit A hereto, and each of which is a true and complete copy of the original thereof, is in full force and effect and has not
been further amended. The License Agreement is a valid, legal and binding obligation of Epoch and, to the knowledge of Epoch, of the Licensee, enforceable against each party thereto in accordance with its terms. Neither Assignor nor, to the
knowledge of Epoch, Licensee is in material default of any of its respective obligations under the License Agreement. Neither Licensee nor Assignor has waived any rights or defaults under the License Agreement that would adversely affect in any
material respect the Assigned Interests, the License Agreement, the Patents, the Products or the Know-How and no event has occurred which, after the giving of notice or the lapse of time or both, would constitute a material default or breach by
Assignor or, to the knowledge of Epoch, by the Licensee of the License Agreement. 
 (b) Assignor has not received any notice, and is not
otherwise aware of, any actual or potential defense or claim (including any claim of recoupment) of the Licensee that could be asserted against Assignee as assignee of the Assigned Interests. 
 (c) Assignor has provided to Assignee a true and complete copy of each report and certificate delivered by Licensee pursuant to Section 5.06 of the
License Agreement. 
 (d) The License Agreement is the only agreement (other than this Agreement) that the Assignor is a party to with
respect to the Assigned Interests. 
 (e) The Patents licensed under the License Agreement for the Exclusive Licensed Field (as that term is
defined in the License Agreement) are not licensed under any other agreement other than the Quencher Agreement for any field outside of the Exclusive Licensed Field. From and after January 1, 2012, any royalty under any of the Patents payable
to Assignor arising from the sale of any Product which is a licensed product covered by both the License Agreement and the Quencher Agreement shall be a Royalty subject to, and shall be paid to Assignee under, the terms of this Agreement.

 (f) Licensee has no prepayments of Royalties remaining unapplied under the License Agreement, including pursuant to Section 5.01 of
the License Agreement. 
 (g) Other than pursuant to the Authorization, no agent has been appointed by Assignor pursuant to Section 5.10
of the License Agreement for the purpose of inspecting records relating to the Assigned Interests. 
  

	4.4	Intellectual Property 

 (a) Exhibit B sets
forth a complete list of all patent applications and patents within the Patents, including the status of each patent and patent application. No Person has challenged the validity or enforceability of any of the Patents. To the knowledge of Assignor,
there is no infringement of the Patents by any Person. Assignor has not received any demand or claim in writing by any Person that (i) such person has any ownership interest in any of the Patents, (ii) any of the Patents are, or may be
invalid or (iii) that the Product infringes upon or may infringe 

  

 - 8 - 

 
upon or otherwise interferes with any patent or other right of any kind of any third party and Epoch owns the Patents and Epoch is not aware of any basis for
any Person to claim that they have any interest in any of the Patents. To the knowledge of Assignor, the Patents are valid and enforceable and all appropriate fees have been paid. To the knowledge of Assignor, the naming of inventors in any of the
Patents is correct and occurred without any deceptive intent. To the knowledge of Assignor, neither the Products nor any of the Products sold by Licensee infringe or interfere with any patent or other right of any kind of any third party. Assignor
has disclosed to Assignee all third party patents relevant to the Assigned Interests for which Assignor has requested a legal opinion concerning validity or non-infringement. Other than pursuant to the License Agreement and the Quencher Agreement
Epoch has not granted any Person the right under the Patents to develop, manufacture, distribute, import, make, use, market or sell the Products or any other product that would infringe the Patents. 
 (b) To the knowledge of Assignor, all material Know-How is owned by Assignor, and has been treated as proprietary and confidential and in a manner
consistent with protecting its trade secrets from disclosure or misappropriation. To the knowledge of Assignor, no third party has a claim or has claimed any ownership rights or received any demand or claim by any person that any of the Know-How is
infringing any intellectual property rights of any third party. 
  

	4.5	Absence of Conflicting Agreements 

 Neither
the execution and delivery of this Agreement or of any of the Closing Documents, nor the observance and performance by Assignor of any covenant or obligation under this Agreement or any Closing Document to which it is a party, or the consummation of
any of the transactions contemplated hereby and thereby, contravenes or results in, or will contravene or result in, a violation of or a default under (with or without the giving of notice or lapse of time, or both) or in the acceleration of any
obligation under: 
  

	 	(a)	any Applicable Law; 

  

	 	(b)	the certificate of incorporation, by-laws or similar organizational documents of Assignor or any directors’, shareholders’, or members’ resolutions of such Party; or

  

	 	(c)	any material instrument, contract, lease, license or other agreement to which Assignor is a party, or by which it or its business or property is bound or affected.

  

	4.6	Consents and Approvals 

 Other than the
Licensee Acknowledgement, no consent, approval, license, order or authorization, registration, declaration or filing with or of any Governmental Agency or other Person is required by Assignor in connection with: 
  

	 	(a)	the execution and delivery by Assignor of this Agreement and the Closing Documents to which it is a party; 

  

	 	(b)	the observance and performance by Assignor of its obligations under this Agreement and the Closing Documents to which it is a party; or 

  

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	 	(c)	the consummation of any of the transactions contemplated thereby. 

  

	4.7	Compliance with Applicable Law 

 Assignor has
conducted and is conducting its business in compliance with all Applicable Laws, and is not in violation of any Applicable Laws, except for violations which do not or will not (either individually or in the aggregate) adversely affect in any
material respect the Assigned Interests, the License Agreement, the Patents, the Products or Assignor’s ability to perform its obligations under this Agreement. 
  

	4.8	Litigation 

 There is no claim, demand, suit,
action, cause of action, dispute, litigation, investigation, grievance, arbitration, governmental proceeding or other proceeding, including appeals and applications for review, in progress against, by or relating to Assignor, the Assigned Interests,
the License Agreement, the Patents or the Products, which would invalidate this Agreement or limit Epoch’s ability to carry out its obligations hereunder or materially adversely affect the Assigned Interests, the License Agreement, the Patents
or the Products, nor to the knowledge of Assignor, are any of the same pending or threatened. There is not presently outstanding against Assignor any judgment, decree, injunction, order or award of any court, Governmental Agency or arbitrator that
has, or could have, a material adverse effect on the Assigned Interests, the License Agreement, the Patents or the Products or such Party or its business or property. 
  

	4.9	Survival 

 The representations and warranties
in this Article 4 shall survive the Closing and the consummation of the transactions contemplated by this Agreement. To the extent not performed by the Effective Date, the covenants of Assignor in this Agreement shall survive the Closing and the
consummation of the transactions contemplated by this Agreement. 
 ARTICLE 5 
 REPRESENTATIONS AND WARRANTIES OF ASSIGNEE 
 Assignee represents and warrants to Assignor as at the Effective Date and acknowledges that Assignor is relying on such representations and warranties in entering into this Agreement: 
  

	5.1	Corporate Matters 

 (a) Assignee is a limited
partnership duly formed and in good standing under the laws of the State of Delaware. 
 (b) Assignee has all necessary power, right and
authority to execute and deliver, and to observe and perform its covenants and obligations under this Agreement and each of the Closing Documents to which it is a party. 
  

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 (c) Assignee has taken all action necessary to authorize the execution and delivery of, and the
observance and performance of its covenants and obligations under, this Agreement and the Closing Documents to which it is a party. 
 (d)
This Agreement and each Closing Document to which Assignee is a party has been or will be duly executed and delivered by Assignee, and this Agreement and each Closing Document to which Assignee is a party, constitutes or will constitute a legal,
valid and binding obligation of Assignee enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors’ rights or by general
principles of equity. 
  

	5.2	Consents and Approvals 

 No consent,
approval, license, order or authorization, registration, declaration or filing with or of any Governmental Agency or other Person is required by Assignee in connection with: 
  

	 	(i)	the execution and delivery by Assignee of this Agreement and the Closing Documents to which it is a party; 

  

	 	(ii)	the observance and performance by Assignee of its obligations under this Agreement and the Closing Documents to which it is a party; or 

  

	 	(iii)	the consummation of any of the transactions contemplated thereby. 

  

	5.3	Absence of Conflicting Agreements 

 Neither
the execution and delivery of this Agreement or of any of the Closing Documents, nor the observance and performance by Assignee of any covenant or obligation under this Agreement or any Closing Document to which it is a party, or the consummation of
any of the transactions contemplated hereby and thereby, contravenes or results in, or will contravene or result in, a violation of or a default under (with or without the giving of notice or lapse of time, or both) or in the acceleration of any
obligation under: 
  

	 	(i)	any Applicable Law; 

  

	 	(ii)	the certificate of limited partnership, limited partnership agreement or organizational documents of Assignee or any resolutions of the general partner of such Party; or

  

	 	(iii)	any material instrument, contract, lease, license or other agreement to which Assignee is a party, or by which it or its business or property is bound or affected.

  

	5.4	Compliance with Applicable Law 

 Assignee has
conducted and is conducting its business in compliance with all Applicable Laws, and is not in violation of any Applicable Laws, except for violations which do not or will not (either individually or in the aggregate) adversely affect in any
material respect the Assignee’s ability to perform its obligations under this Agreement. 
  

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	5.5	Litigation 

 There is no claim, demand, suit,
action, cause of action, dispute, litigation, investigation, grievance, arbitration, governmental proceeding or other proceeding, including appeals and applications for review, in progress against, by or relating to Assignee, which would invalidate
the Agreement or materially limit Assignee’s ability to carry out its obligations hereunder nor to the knowledge of Assignee, are any of the same pending or threatened. There is not presently outstanding against Assignee any judgment, decree,
injunction, order or award of any court, Governmental Agency or arbitrator that has, or could have, a material adverse effect on the Assignee or its business or property. 
  

	5.6	Survival 

 The representations and warranties
in this Article 5 shall survive the Closing and the consummation of the transactions contemplated by this Agreement. To the extent not performed by the Effective Date, the covenants of Assignee in this Agreement shall survive the Closing and the
consummation of the transactions contemplated by this Agreement. 
 ARTICLE 6 
 CLOSING 
  

	6.1	Assignee Deliveries 

 Assignee shall deliver
to Epoch concurrent with delivery of this Agreement: 
  

	 	(a)	an amount of same day funds equal to the Purchase Price; 

  

	 	(b)	a duly executed and delivered Licensee Direction; and 

  

	 	(c)	such other documents and instruments as Assignor may reasonably require to give effect to and carry out the transactions contemplated herein. 

  

	6.2	Assignor Deliveries 

 Assignor shall deliver
to Assignee concurrent with delivery of this Agreement: 
  

	 	(a)	a duly executed and delivered acknowledgment from Licensee in form and substance acceptable to the Assignee (the “Licensee Acknowledgment”);

  

	 	(b)	standard corporate authority and enforceability opinions on this Agreement and the Security Agreement and a no conflict with laws opinion on the License Agreement, from counsel to
the Assignor, each in form and substance satisfactory to the Assignee and its counsel; 

  

 - 12 - 

	 	(c)	a duly executed and delivered security agreement granting a security interest in the License Agreement, the Patents and the Know-How (the “Security Agreement”) to
Assignee as security for the performance of Assignor’s obligations hereunder; 

  

	 	(d)	a duly executed and delivered authorization of Assignor appointing the Assignee or Assignee’s nominee as Assignor’s duly authorized agent for the purposes of inspecting
Licensee’s records relating to the Assigned Interests pursuant to Section 5.10 of the License Agreement (the “Authorization”); 

  

	 	(e)	a duly executed and delivered Licensee Direction; 

  

	 	(f)	in respect of Assignor: 

  

	 	(i)	a current certificate of good standing from the Secretary of State for the State of Delaware; 

  

	 	(ii)	certified resolutions authorizing the transactions contemplated herein and in the other Closing Documents; and 

  

	 	(iii)	an incumbency certificate; and 

  

	 	(g)	such other documents and instruments as Assignee may reasonably require to give effect to and carry out the transactions contemplated herein. 

 ARTICLE 7 
 COVENANTS

 The Parties covenant and agree as follows: 
  

	7.1	License Agreement 

 (a) Unless otherwise
agreed to in writing by the Parties, Assignor shall not, with respect to the Assigned Interests (i) forgive, release, or compromise any amount owed or to become owing with respect to the Assigned Interests on or after the Effective Date,
(ii) modify, waive, cancel or otherwise relinquish any of the Assigned Interests under the License Agreement, or (iii) amend, restate or novate either the License Agreement or the Quencher Agreement in a manner that could adversely affect,
or diminish the value of, the Assigned Interests. 
 (b) Upon becoming aware of any breach of the License Agreement arising with respect to
the Assigned Interests, Assignor shall promptly notify Assignee in writing of such breach. 
 (c) While any obligations remain outstanding
under this Agreement, Assignor will not terminate, modify, or subcontract or otherwise delegate its obligations under the License Agreement without the prior written consent of Assignee and will fulfill all of its supply obligations under the
License Agreement. 
  

 - 13 - 

 (d) Assignor will promptly provide to the Assignee copies of all Reports delivered under the License
Agreement to the extent the Reports relate to the Assigned Interests. 
 (e) Any royalty under any of the Patents payable to Assignor arising
from the sale of any Product which is a licensed product covered by both the License Agreement and the Quencher Agreement shall be a Royalty subject to, and shall be paid to Assignee under, the terms of this Agreement. 
 (f) From time to time after the date hereof, Assignee may change its nominee for purposes of the Authorization, and upon request of Assignee, Assignor
shall promptly execute and deliver to Assignee a new Authorization in respect of Assignee’s nominee as duly authorized agent. 
 (g)
Epoch will not exercise its rights to inspect Licensee’s records relating to the Assigned Interests pursuant to the audit rights under Section 5.10 of the License Agreement without the prior written consent of Assignee, which consent may
be withheld in Assignee’s sole discretion. 
 (h) Assignee acknowledges that the License Agreement may be terminated by the Licensee
(other than by reason of an act or omission of Epoch which caused such termination) in accordance with Section 9.02(c) of the License Agreement, and that a termination of the License Agreement by Licensee in accordance with such section would
not in and of itself constitute a breach of this Section 8.1 or any other provision of this Agreement. Assignor covenants that in the event that the License Agreement is terminated by Licensee, Assignor will use its commercially reasonable
efforts to enter into a license agreement for the Products within the Field of Use for the Patents specified in the Licence Agreement or into a transaction to effect the exploitation for gain of those rights (in either case a “Replacement
Agreement”), and to effect an assignment to Assignee of the royalties or proceeds under that Replacement Agreement in order to achieve as closely as possible an economic result no worse to the Assignee than if the License Agreement had not
been terminated, and generally on terms and conditions that are acceptable to Assignee acting reasonably. Assignor shall consult with Assignee prior to entering into any Replacement Agreement and shall keep Assignee informed as to the status of
negotiations with respect to and completion of the Replacement Agreement. 
  

	7.2	Maintenance and Access to Records 

 Assignor
agrees that it will retain all books and records and any other documents, information and files relating to the Products generated by it or delivered to it by the Licensee for such period as is required by Applicable Law. So long as such books and
records and such other documents, information and files are retained by the Assignor and any Assigned Interests are outstanding, the Assignee or its authorized representatives shall have reasonable access thereto. 
  

	7.3	Conduct of the Business 

 Assignor shall
cause its business and other activities with respect to the Assigned Interests, the License Agreement, the Patents, the Products and the Know-How to be carried on in the ordinary course, consistent with past practice and shall not take or permit to
be taken any action that will have a material adverse effect on the Products. 
  

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	7.4	True Sale 

 (a) Assignor and Assignee intend
and agree that the sale, assignment and transfer of the Assigned Interests under Section 2.1 (the “Assignment”) shall be, and is, a true sale by Assignor to Assignee that is absolute and irrevocable and that provides Assignee
with the full benefits of ownership of the Assigned Interests, and neither Assignor nor Assignee intends the transactions contemplated hereunder to be, or for any purpose to be characterized as, a loan from Assignee to Assignor. Assignor waives any
right to contest or otherwise assert that this Agreement is other than a true sale by Assignor to Assignee under Applicable Law, which waiver shall be enforceable against Assignor in any bankruptcy or insolvency proceeding relating to Assignor.

 (b) Assignor hereby consents to Assignee recording and filing, at Assignee’s sole cost and expense, financing statements (and
continuation statements with respect to such financing statements when applicable) meeting the requirements of Applicable Law in such manner and in such jurisdictions as are necessary or appropriate to perfect the Assignment intended to be effected
by this Agreement, including precautionary filings customary in true sale transactions. 
  

	7.5	Patent Obligations 

 (a) Assignor shall, at
is own cost, in accordance with its standard procedures and with good practice, and subject to the rights of Licensee under the License Agreement, use its commercially reasonable efforts (including making payment of appropriate fees to the USPTO)
to, (i) prosecute and maintain in full force and effect each pending patent application worldwide included in the Patents, in particular, validate EP 0 819 133 in at least Great Britain, Germany, France, Spain and Italy by April 2, 2008;
(ii) maintain and keep in full force and effect any issued Patents in each of the countries worldwide in which Assignor has an issued patent, and (iii) maintain all Know-How relating to the Products in strict confidence other than
disclosure to Licensee in accordance with the License Agreement. Assignor shall provide notice to Assignee of all information relating to the prosecution and/or validity or enforceability of any patent or application in the Patents, including all
correspondence to and from the USPTO or any other patent office in which any patent application is pending or from which any patent has issued. If practicable, such notice to Assignee shall be in sufficient time to allow Assignee to comment, or act
pursuant to section (b) below, on matters which may have a material effect on the scope, validity, or enforceability of any of the Patents. 
 (b) Assignor shall not without the prior written consent of Assignee abandon any of the Patents or Know-How, or sell, transfer, assign or otherwise dispose of the Patents or Know-How to any Person and shall not grant any licenses thereunder
other than (i) the license in the License Agreement, (ii) the license in the Quencher Agreement, and (iii) any license for use outside the Field of Use as defined in the License Agreement or the Quencher Agreement that does not and
would not materially interfere with or impair the value of the Assigned Interests. Assignee shall have, at its option, the right to have Assignor assign to Assignee all right, title and interest in any Patent that Assignor decides to abandon.

 (c) Assignor hereby grants to Assignee an irrevocable power of attorney with power of substitution to act in the place and stead of
Assignor in performing the actions specified in (a)(i) and (a)(ii) above. Such power is acknowledged by Assignor to be coupled with an interest and shall be exercisable immediately upon Assignor’s breach of the covenant in (a)(i) or (a)(ii)
above. 
  

 - 15 - 

	7.6	Certain Conduct 

 Without the prior written
consent of Assignee, which consent shall not be unreasonably withheld, Assignor shall not: (i) create or suffer to exist any Encumbrance other than the Security Interest on any of the Assigned Interests or the License Agreement; (ii) amend
or terminate the License Agreement or fail to perform and fulfill its obligations under the License Agreement in accordance with the terms thereof if such amendment, termination or failure to perform would have a material adverse affect on any of
the Assigned Interests; (iii) sell, transfer, assign or otherwise dispose of any interest in the Patents other than pursuant to a Permitted Encumbrance, or (iv) agree to do any of the foregoing. 
  

	7.7	Indemnities 

 (a) Assignor hereby indemnifies
and agrees to hold Assignee harmless from any damages suffered or incurred by Assignee to the extent resulting from (i) any material breach of a representation or warranty of Assignor contained herein, or (ii) the material breach by
Assignor of any covenant contained in this Agreement or any of the Closing Documents, or (iii) any Encumbrance of any of the Assigned Interests or the License Agreement, other than any Encumbrance created by Assignee or a Permitted Encumbrance.
Assignee hereby indemnifies and holds Assignor harmless from any damages suffered or incurred by Assignor to the extent resulting from (i) any material breach of a representation or warranty of Assignee contained herein, or (ii) the
material breach by Assignee of any covenant contained in this Agreement or the Assignee Closing Documents. 
 (b) Assignor hereby indemnifies
and agrees to hold Assignee harmless from any damages suffered or incurred by Assignee to the extent resulting from any breach of the License Agreement by a party thereto, other than (i) the failure of Licensee to pay the royalties owing
thereunder where such failure to pay is not related to, resulting from or in response to a breach of the License Agreement by Assignor or (ii) a breach of a covenant or representation by a party to the License Agreement related to or
resulting from one or both of the parties’ inability to market, commercialize or exploit the Patents. 
  

	7.8	Third Party Claims Procedure 

 The
indemnified party shall give notice (the “Indemnity Notice”) to the indemnifying party specifying the particulars of any Third Party claim within ten (10) days after it receives notification of the claim; provided, however,
that failure to give such notice within such time period shall not prejudice the rights of the indemnified party except to the extent that the failure to give such notice materially adversely affects the ability of the indemnifying party to
defend the claim or to cure the breach of the representation, warranty, covenant or obligation giving rise to the claim. Subject to the terms of this Section 7.8, the indemnifying party shall have sole control over the defense and settlement of
such claim. The indemnifying party may not settle or compromise the claim without the prior written consent of the indemnified party 

  

 - 16 - 

 
unless such settlement or compromise (i) involves no payment (whether by cash, securities or other instrument), assignment, granting of a license or
admission of fault or wrongdoing by the indemnified party and (ii) the indemnified party receives a comprehensive general release of all claims from the applicable third parties. The indemnified party shall provide to the indemnifying party, in
confidence, all files, books, records and other information in its possession or control which may be relevant to the defense of such claim. The indemnified party shall co-operate in all reasonable respects in the defense of such claim but at the
expense of the indemnifying party. If the indemnifying party fails to diligently defend such claim throughout the period that such claim exists, its right to defend the claim shall terminate and the indemnified party may assume the defense of such
claim at the sole expense of the indemnifying party. In such event, the indemnified party may compromise or settle such claim, without the consent of the indemnifying party. 
 ARTICLE 8 
 GENERAL 
  

	8.1	Confidentiality 

 For a period beginning on
the date hereof and terminating on the date that is five years after the date the last Royalty is received, each of Assignee and Assignor and their respective Affiliates, shall not use, reveal or disclose to Third Parties (other than Assignee’s
beneficiaries and the Assignor’s and Assignee’s respective financial institutions, counsel and advisors and then only on a confidential basis) any information received from the other Party in connection with this Agreement (including any
information or reports provided to Assignee or its Affiliates by Licensee, and including the terms of this Agreement), without first obtaining the written consent of the disclosing or other Party, except as may be otherwise provided herein. This
confidentiality obligation shall not apply to information which (a) is or becomes a matter of public knowledge (other than as a result of a breach of this Agreement), (b) is already in the possession of the receiving Party, (c) is
disclosed to the receiving Party by a Third Party having the right to do so, or (d) is required by Applicable Law to be disclosed, including pursuant to applicable securities laws provided that if Assignor is required to file this Agreement or
any other Closing Document in any registry of repository accessible by the public, Assignor will use its commercially reasonable efforts to obtain confidential treatment for commercially sensitive information from such documents and shall co-operate
and consult with Assignee in that regard. The Parties shall take reasonable measures to assure that no unauthorized use or disclosure is made. 
  

	8.2	Amendment 

 This Agreement may be amended or
supplemented only by a written agreement signed by each Party. 
  

	8.3	Waiver of Rights 

 Any waiver of, or consent
to depart from, the requirements of any provision of this Agreement shall be effective only if it is in writing and signed by the Party giving it, and only in the specific instance and for the specific purpose for which it has been given. No failure

  

 - 17 - 

 
on the part of any Party to exercise, and no delay in exercising, any right under this Agreement shall operate as a waiver of such right. No single or
partial exercise of any such right shall preclude any other or further exercise of such right or the exercise of any other right. 
  

	8.4	Tender 

 Any tender of documents hereunder
may be made upon the Parties or their respective counsel and money shall be tendered by wire transfer of same day funds. 
  

	8.5	Expenses 

 Epoch agrees to pay all reasonable
costs and expenses of Assignee in connection with the transaction contemplated by this Agreement, any amendments or modifications of (or supplements to) this Agreement and any and all other documents furnished pursuant hereto or in connection
herewith, including the reasonable fees, and out-of-pocket expenses of counsel and consultants to Assignee, to a maximum of [***] (the “Cap”) provided that costs incurred by Assignee for the preparation by Assignee’s
U.S. bankruptcy counsel for Assignee of a memorandum of advice on the transactions contemplated by this Agreement shall not be included in, and shall be in addition to, any amounts paid under the Cap, as well as all reasonable costs and expenses
(including, without limitation, reasonable legal fees and expenses), if any, in connection with the enforcement of this Agreement. 
 Assignor shall be responsible for and pay for its expenses in connection with the transactions contemplated by this Agreement, including any counsel and broker fees. 
  

	8.6	Notices 

 Any notice, demand or other
communication (a “Notice”) required or permitted to be given or made hereunder shall be in writing and shall be sufficiently given or made if: 
  

	 	(a)	delivered in person during normal business hours of the recipient on a Business Day and left with a receptionist or other responsible employee of the recipient at the relevant
address set forth below; 

  

	 	(b)	sent by courier (overnight delivery); or 

  

	 	(c)	sent by Transmission, charges prepaid and confirmed by registered mail as provided in Subsection (b); 

  

	***	CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION. 

  

 - 18 - 

 in the case of a Notice to Epoch at: 
 Epoch Biosciences, Inc. 
 21720 23rd Drive SE 
 #150 
 Bothwell, WA 98021 
 USA 
 Attention: Nicholas Venuto and David Ludvigson 
 Facsimile No.: (425) 482-5550 
 and in the case of a Notice to Assignee at: 
 Drug Royalty LP2 
 c/o DRI Capital Inc., 
 22 St. Clair Avenue East 
 Suite 200 
 Toronto, Ontario M4T 2S5 
 Canada 

Attention: Behzad Khosrowshahi 
 Facsimile
No.: (416) 863-5161 
 with a copy to: 
 Davies Ward Phillips & Vineberg LLP 
 44th Floor 
 1 First Canadian Place 
 Toronto, Ontario M5X 1B1 
 Canada 

Attention: Gillian R. Stacey 
 Facsimile
No.: (416) 863-0871 
 Any Notice so given shall be deemed to have been given and to have been received (a) on the day of delivery in
person or by courier, if so delivered, and (b) on the day following the day Notice was sent by Transmission, provided such day is a Business Day and if not, on the first Business Day thereafter. Addresses for Notice may be changed by giving
notice in accordance with this Section 8.6. 
  

	8.7	Assignment 

 (a) Upon notice in writing to
Assignor, this Agreement and any or all of the rights or obligations of Assignee under this Agreement and the Assigned Interests and the Closing Documents shall be assignable and may be delegated by Assignee without restriction. 
  

 - 19 - 

 (b) Neither this Agreement nor any or all of the rights or obligations hereunder shall be assignable by
Assignor without the prior written consent of Assignee, which consent shall not be unreasonably withheld provided that Epoch may without the prior consent of Assignee but with prior written notice assign this Agreement together with all of its
rights hereunder to an Affiliate of Epoch, provided that such Affiliate assumes all of Epoch’s obligations hereunder and is at least as credit-worthy as Epoch, and further provided that if at any time such Affiliate ceases to be an Affiliate of
Epoch, then all rights and obligations under this Agreement shall revert to Epoch or Epoch’s successor. 
 (c) This Agreement shall
inure to the benefit of and be binding upon the Parties and their respective successors (including any successor by reason of merger, reorganization, sale of assets or statutory arrangement of any Party) and permitted assigns. 
  

	8.8	Further Assurances 

 Each Party shall do such
acts and shall execute such further documents, conveyances, deeds, assignments, transfers and the like, and will cause the doing of such acts and will cause the execution of such further documents as are within its power as any other Party may in
writing at any time and from time to time reasonably request be done and/or executed, in order to give full effect to the provisions of this Agreement and the Closing Documents. 
  

	8.9	Independent Parties 

 Nothing contained in
this Agreement shall in any way or for any purpose constitute any Party a partner or agent or legal representative of any other Party in the conduct of any business or otherwise or a member of a joint venture or joint enterprise or create any
fiduciary relationship among them. Except as expressly provided herein, no Party shall have any authority to act for or to assume any obligation or responsibility on behalf of any other and no Party shall have any authority to bind any other Party
to act or to undertake any obligation or responsibility whatsoever. 
  

	8.10	Public Announcements 

 The Parties agree that
no public announcements concerning the transactions contemplated herein will be made by any Party, except as may be necessary, in the opinion of counsel to the Party making such disclosure, to comply with the requirements of any Applicable Law,
including applicable securities laws and subject to Section 10.1. If any such public statement or release is so required concerning the transactions contemplated herein, the Party making such disclosure shall consult with the other Party prior
to making such statement or release, and the Parties shall use reasonable efforts, acting in good faith, to agree upon a text for such statement or release which is satisfactory to all Parties. 
  

	8.11	Severability 

 If any covenant, obligation or
provision of this Agreement or the application thereof to any Person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement or the application of such covenant, obligation or agreement to Persons or
circumstances, other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each covenant, obligation and provision of this Agreement shall be separately valid and enforceable to the fullest extent permitted by
law. 
  

 - 20 - 

	8.12	Counterparts 

 This Agreement may be executed
in any number of counterparts and each such executed counterpart shall be deemed to be an original. All executed counterparts when taken together shall constitute one and the same agreement. 
  

	8.13	Facsimile Execution 

 To evidence the fact
that it has executed this Agreement, a Party may send a copy of its executed counterpart to the other Party by facsimile Transmission and that Party shall be deemed to have delivered this Agreement on the date it sent such facsimile Transmission. In
such event, such Party shall forthwith deliver to the other Party the counterpart of this Agreement executed by such Party. 
 SIGNATURE PAGE
TO FOLLOW THIS PAGE 
  

 - 21 - 

 IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the date first above written. 
  

			
	EPOCH BIOSCIENCES, INC.
		
	by	 	/S/ DAVID LUDVIGSON
		 	Name: David Ludvigson
		 	Title: President and CEO
	
	 DRUG ROYALTY LP2, by its General
 Partner DRC MANAGEMENT LLC2

		
	by	 	/S/ BEHZAD KHOSROWSHAHI
		 	Name: Behzad Khosrowshahi
		 	Title: Manager

 Signature page for Royalty Interest Assignment Agreement 

 EXHIBIT A 
 LICENSE AGREEMENT AND QUENCHER AGREEMENT 

 EXHIBIT B 
 PATENTS AND PATENT APPLICATIONSSecurity Agreement

 Exhibit 10.7 
 SECURITY AGREEMENT 
 THIS SECURITY AGREEMENT
is made as of the 28th day of March, 2008 between Drug Royalty LP2, a limited partnership organized and existing under the laws of the State of
Delaware (“Secured Party”), and Epoch Biosciences, Inc., a corporation organized and existing under the laws of the State of Delaware (“Debtor”), with its principal executive offices at 10398 Pacific Center Court,
San Diego, CA 92121. 
 WHEREAS Secured Party and Debtor have entered into a Royalty Interest Assignment Agreement dated as of the date
hereof (as such agreement may be amended or supplemented from time to time, the “Assignment Agreement”); 
 AND WHEREAS this
Agreement is entered into pursuant to Section 6.2(c) of the Assignment Agreement; 
 NOW THEREFORE in consideration of the respective
covenants, promises and agreements of the parties herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the parties), the parties agree as follows: 
 ARTICLE 1 
 INTERPRETATION 
  

	1.1	Defined Terms 

 Capitalized terms that are
defined in the Assignment Agreement and not otherwise defined herein have, unless the context otherwise requires, the respective meanings given to them in the Assignment Agreement and, in addition, the following terms have the following meanings
(and grammatical variations of such terms shall have corresponding meanings): 
 “Agreement” means this Security Agreement,
the recitals, all attached exhibits and schedules, and any agreement, exhibit or schedule supplementing or amending this Agreement. All uses of the words “hereto”, “herein,” “hereof,” “hereby” and
“hereunder” and similar expressions refer to this Agreement and not to any particular Section or portion of it; 
 “Assignment Agreement” has the meaning set out in the recitals; 
 “Collateral” means the License
Agreement, the Know-How and the Patents (whether now or hereafter acquired) and includes Proceeds therefrom and, where the context permits, any reference to “Collateral” shall be deemed to be a reference to “Collateral or
any part thereof”; 

 “Event of Default” under this Agreement means the occurrence of any one or more of the
following events: 
  

	 	(a)	the failure of Debtor to pay or perform any monetary Obligations within 5 business days of the date on which such Obligations are due or payable; 

  

	 	(b)	the failure to perform in any material respect any non-monetary Obligation or covenant under this Agreement or the Assignment Agreement and such failure shall continue unremedied
for a period of 5 business days after receipt of notice thereof from Secured Party; 

  

	 	(c)	any breach in any material respect of any representation or warranty made by Debtor hereunder or in the Assignment Agreement; or 

  

	 	(d)	the cessation or threatened cessation by Debtor of its business generally or the admission by Debtor of its inability to, or, its actual failure to, pay its debts generally,
including circumstances where Debtor (i) is adjudged bankrupt or insolvent, (ii) makes an assignment in bankruptcy or otherwise for the benefit of creditors, (iii) files a petition or proposal under bankruptcy, insolvency or similar
legislation, or (iv) has instituted against it proceedings under bankruptcy, insolvency or similar legislation including for the appointment of a receiver or trustee; 

 “Financing Statement” has the meaning set out in Section 3.1(f); 
 “including”, when used herein or in any Closing Document, means “including without limitation” and shall not be construed to
limit any general statement which it follows to the specific or similar items or matters immediately following it; 
 “Know-How” means Licensed Know-How, as that term is defined in the License Agreement; 
 “License
Agreement” means the Second Amended and Restated Collaboration, License and Supply Agreement between Debtor and Applera Corporation dated as of August 17, 2000, as amended by the First Side Agreement dated October 31, 2001, the
Amendment No. 1 to the Second Amended and Restated Collaboration, License and Supply Agreement dated July 26, 2002 and Amendment No. 2 to the Second Amended and Restated Collaboration, License and Supply Agreement dated as of
December 31, 2005, as it may be further amended from time to time after the date hereof; 
 “Obligations” means all
indebtedness, liabilities and obligations (whether direct, indirect, absolute, contingent or otherwise) of Debtor to Secured Party arising pursuant to the Assignment Agreement or arising pursuant hereto upon the occurrence of an Event of Default;

  

 - 2 - 

 “Patents” means the Licensed Patents and Related Patents, as those terms are defined in
the License Agreement, including those Patents and patent applications set forth on Exhibit A attached hereto; 
 “Proceeds”
means property in any form derived, directly or indirectly, from any dealing with the Collateral or other Proceeds (together with any reissue, continuation, continuation-in-part or extension of the Patents) and includes any accounts arising from any
sale, transfer, license, lease or other dealing in any of the Collateral and any payment representing indemnity or compensation for loss or damage to the Collateral or other Proceeds, including insurance proceeds and proceeds (as such term is
defined in the UCC); 
 “Security Interest” has the meaning set out in Section 2.1; 
 “Transaction Documents” has the meaning set out in Section 2.2; 
 “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York or any legislation that may be
substituted therefor (as any such substituted legislation may be amended from time to time); provided that, if, with respect to any Financing Statement or by reason of any provisions of law, the perfection or the effect of perfection or
non-perfection of the Security Interest granted pursuant to the Assignment Agreement is governed by the Uniform Commercial Code as in effect in a jurisdiction of the United States other than New York, then “UCC” means the Uniform
Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions of the Assignment Agreement and any Financing Statement relating to such perfection or effect of perfection or non-perfection; and 

“US PTO” means the United States Patent and Trademark Office and any successor office. 
  

	1.2	Meanings under the UCC 

 All terms used
herein and not otherwise defined pursuant to Section 1.1 (including any definitions incorporated herein by reference to the Assignment Agreement) and which are defined in the UCC shall, unless the context otherwise requires, have the respective
meanings assigned to such terms in the UCC. 
  

	1.3	Sections and Headings 

 The division of this
Agreement into Articles and Sections and the insertion of headings are for convenience of reference only and shall not affect the interpretation of this Agreement. 
  

 - 3 - 

	1.4	Governing Law 

 This Agreement shall be
governed by and construed, interpreted and enforced in accordance with, the laws of the State of New York and the federal laws of the United States, without giving effect to the principles of conflicts of law thereof except as set forth in
Section 5-1401 of the New York General Obligations Law. 
 EACH PARTY HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF
RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION HEREWITH. THIS WAIVER OF RIGHT
TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY EACH PARTY, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY
OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER. 
  

	1.5	Consent to Jurisdiction 

 Each of Debtor and
Secured Party (a) hereby irrevocably submits to the jurisdiction of the United States District Court for the Southern District of New York for the purposes of any suit, action or proceeding arising out of or relating to this Agreement and to
the extent that such United States district court lacks jurisdiction despite the consent herein, to the jurisdiction of the courts of the State of New York sitting in New York County and the appellate courts therefrom, and (b) hereby waives,
and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit,
action or proceeding is improper. Each of Debtor and Secured Party consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under the Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 1.5 shall affect or limit any right to serve process in any other manner permitted by law. 
  

	1.6	Severability 

 To the extent permitted by
law, if any provision herein is determined to be void, voidable or unenforceable, in whole or in part, such determination shall not affect or impair or be deemed to affect or impair the validity of any other provision hereof and all the provisions
hereof are hereby declared to be separate, severable and distinct. 
  

 - 4 - 

 ARTICLE 2 
 SECURITY INTERESTS 
  

	2.1	Grant of Security Interest 

 To secure the
prompt, punctual and faithful payment and performance of the Obligations, Debtor hereby grants to Secured Party, for the benefit of Secured Party, a continuing security interest (the “Security Interest”) in and to the Collateral.
Nothing contained in the foregoing definition shall be construed to afford Secured Party any recourse to the Patents or any other Collateral prior to the occurrence of an Event of Default. 
  

	2.2	Security Interest Absolute, etc. 

 This
Agreement shall in all respects be a continuing, absolute, unconditional and irrevocable grant of security interest, and shall remain in full force and effect until terminated. All rights of Secured Party and the Security Interest granted hereunder,
and all obligations of Debtor hereunder, shall, in each case, be absolute, unconditional and irrevocable irrespective of: 
  

	 	(a)	any lack of validity, legality or enforceability of this Agreement, the Assignment Agreement or any other Closing Document (collectively, the “Transaction
Documents”); 

  

	 	(b)	the failure of Secured Party to assert any claim or demand or to enforce any right or remedy against Debtor or any other Person under the provisions of any Transaction Document or
otherwise; 

  

	 	(c)	any change in the time, manner or place of payment of, or in any other term of, all or any part of the Obligations, or any other extension, compromise or renewal of any Obligations;

  

	 	(d)	any reduction, limitation, impairment or termination of any Obligations for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to (and Debtor hereby waives any right to or claim of) any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or any
other event or occurrence affecting, any Obligations or otherwise; and 

  

	 	(e)	any other circumstance which might otherwise constitute a defense available to, or a legal or equitable discharge of, Debtor or any other Person under the provisions of any
Transaction Document. 

  

 - 5 - 

 ARTICLE 3 
 REPRESENTATIONS AND WARRANTIES OF DEBTOR 
  

	3.1	Debtor Representations and Warranties 

 Debtor represents and warrants to Secured Party (and acknowledges that Secured Party is relying on such representations and warranties) that as at the date hereof: 
  

	 	(a)	“Epoch Biosciences, Inc.” is its only business name and has been its only business name for at least 24 months prior to the date hereof; 

  

	 	(b)	the jurisdiction in which Debtor is located for purposes of Sections 9-301 and 9-307 of the UCC is Delaware; 

  

	 	(c)	the Collateral has not been abandoned or adjudged invalid or unenforceable, in whole or in part; 

  

	 	(d)	Debtor has not made a previous assignment, sale, transfer or agreement constituting a present or future assignment, sale or transfer of any Collateral for purposes of granting a
security interest or as collateral that has not been terminated or released; 

  

	 	(e)	this Agreement creates a valid security interest in the Collateral securing the payment and performance of the Obligations; 

  

	 	(f)	Debtor has filed or caused to be filed all UCC-1 financing statements in the filing office for its jurisdiction of organization (collectively, the “Financing
Statements”). Debtor hereby approves, ratifies and confirms any such Financing Statement filed by Secured Party and waives any right to claim that any such prior filing was not in compliance with the UCC or not pursuant to a prior
authenticated record. Promptly, but no later than five days after the execution and delivery of this Agreement, Debtor will cause a Collateral Assignment Agreement incorporating by reference the terms of this Agreement in form and substance
acceptable to Secured Party, to be filed with the US PTO, together with all appropriate cover sheets and other required documentation. 

  

	 	(g)	upon the filing of the Financing Statements with the appropriate agencies and the filings, recordings and registrations described in this Article 3, the Security Interest will
constitute a perfected first priority security interest in the Collateral described on such financing statements in favour of Secured Party to the extent that a security interest therein may be perfected by filing pursuant to the relevant UCC, prior
to all other Encumbrances, except for Permitted Encumbrances (in which case such security interest shall be second in priority of right only to the Permitted Encumbrances until the obligations secured by such Permitted Encumbrances have been
satisfied); and 

  

 - 6 - 

	 	(h)	except as have been obtained or made and are in full force and effect, no authorization, approval or other action by, and no notice to or filing with, any Governmental Agency or any
other third party is required either 

  

	 	(i)	for the grant by Debtor of the Security Interest; or 

  

	 	(ii)	for the perfection or maintenance of the Security Interest hereunder, including the first priority nature of such security interest (except with respect to the Financing Statements
or the recordation of any agreements with the US PTO or the U.S. Copyright Office) or the exercise by Secured Party of its rights and remedies hereunder. 

  

	3.2	Survival 

 The representations and warranties
of Debtor contained in this Agreement shall survive for so long as any of the Obligations shall remain unpaid or unperformed, as applicable, and, notwithstanding any investigation made by or on behalf of Secured Party, shall continue in full force
and effect for the benefit of Secured Party during such period. 
 ARTICLE 4 
 COVENANTS OF DEBTOR 
 So long as
any of the Obligations shall remain unpaid or unperformed, Debtor covenants and agrees as follows: 
  

	4.1	Change of Name or Jurisdiction 

 Debtor shall
not change its name as set out in Section 3.1(a) or add any new business name or change its jurisdiction as set out in Section 3.1(b) without providing at least 30 days’ prior written notice to Secured Party of such change or
addition. 
  

	4.2	Creating and Preserving the Security Interest 

 Debtor shall, from time to time at the request of Secured Party, make and do all such acts and things and execute and deliver all such instruments, agreements, financing statements and documents as Secured Party reasonably requests by
notice in writing given to Debtor in order to create, preserve, perfect, validate or otherwise protect the Security Interest, to enable Secured Party to exercise and enforce its rights and remedies hereunder and generally to carry out the provisions
and purposes of this Agreement and, to this end, for greater certainty, Debtor shall, from time to time at the request of Secured Party, execute a power of attorney in such form as may be reasonably satisfactory to Secured Party and Debtor, such
power of attorney to be in addition to the power of attorney granted hereby. 
  

 - 7 - 

	4.3	Verification of Collateral 

 Secured Party
shall have the right at any time and from time to time to verify the existence and state of the Collateral in any reasonable manner that Secured Party may consider appropriate, and Debtor agrees to furnish all reasonable assistance and information
and to perform all such reasonable acts as Secured Party may reasonably request in connection therewith and for such purpose to grant to Secured Party or its agents reasonable access to all places where Collateral may be located and to all premises
occupied by Debtor. 
  

	4.4	Preservation of Collateral 

 Debtor shall not
transfer or convey any interest in the Collateral or suffer, permit or cause any Encumbrances thereon other than Permitted Encumbrances. Debtor shall not do any act or omit to do any act whereby any Patent may become abandoned or dedicated. Debtor
agrees to take all steps in any proceeding before the US PTO or the courts, offices or agencies of any other jurisdiction, to maintain each application and registration of the Patents and to maintain the accuracy and effectiveness of the filings,
registrations or recordings with respect to the Collateral in favour of Secured Party, in such capacity. Secured Party may from time to time, at its option, perform the acts specified in the foregoing which Debtor fails to perform after being
requested in writing so to perform (it being understood that no such request need be given after the occurrence and during the continuance of an Event of Default) and Secured Party may from time to time take any other action where it deems necessary
for the maintenance, preservation or protection of any of the Collateral. 
 ARTICLE 5 
 DEFAULT AND SECURED PARTY’S REMEDIES 
  

	5.1	Remedies Upon Default 

 Upon the occurrence
of any Event of Default and during the continuance thereof, the Security Interest granted hereunder shall immediately become enforceable without any further notice or any other action on the part of Secured Party, and Secured Party may, forthwith or
at any time thereafter and without notice to Debtor, except as provided in the UCC or this Agreement: 
  

	 	(a)	commence legal action to enforce payment or performance of the Obligations; 

  

	 	(b)	in consultation with Debtor, dispose of the Collateral by private or public sale, lease, license or otherwise upon such terms and conditions as Secured Party may determine and
whether or not Secured Party has taken possession of the Collateral and Secured Party shall provide not less than 10 days’ written notice to Debtor specifying the timing of such disposition; 

  

 - 8 - 

	 	(c)	file such proofs of claim or other documents as may be necessary or desirable to have its claim lodged in any bankruptcy, winding-up, liquidation, dissolution or other proceedings
(voluntary or otherwise) relating to Debtor; and 

  

	 	(d)	take any other action, suit, remedy or proceeding authorized or permitted by this Agreement, the Assignment Agreement, the UCC or by law or equity, including pursuant to the
authority granted in any power of attorney granted hereunder or otherwise pursuant to this Agreement or any other Transaction Document. 

  

	5.2	Non-Exclusive License 

 Upon the occurrence
of any Event of Default and during the continuance thereof, Secured Party shall grant Debtor a non-exclusive worldwide license under the Patents and the Know-How within all fields of use for the Patents accompanied by the right to sublicense the
Patents and the Know-How under those licenses that were in existence at the time of such default provided that any such right to sublicense shall be limited to (i) those licenses in existence at the time of the Event of Default and
(ii) the scope of license granted under such licenses to such licensees in existence at the time of such default. 
  

	5.3	Rights and Remedies are Not Mutually Exclusive 

 To the fullest extent permitted by law, Secured Party’s rights and remedies, whether provided for in this Agreement or otherwise, are not mutually exclusive and are cumulative and not alternative and may be exercised independently or
in any combination. 
  

	5.4	No Obligation to Enforce 

 Secured Party
shall not be under any obligation to, or liable or accountable for any failure to, enforce payment or performance of the Obligations or to seize, realize, take possession of or dispose of the Collateral and shall not be under any obligation to
institute proceedings for any such purpose. 
  

	5.5	Cost of Enforcement 

 Debtor shall, upon
demand, reimburse Secured Party for all reasonable costs and expenses incurred by Secured Party in the enforcement of any rights hereunder (including, without limitation, reasonable fees and expenses of counsel where Secured Party prevails) and all
such costs shall form part of the Obligations. 
  

 - 9 - 

	5.6	Debtor Power of Attorney 

 Debtor hereby
irrevocably constitutes and designates Secured Party as and for Debtor’s attorney in fact: 
  

	 	(a)	to exercise, upon the occurrence of an Event of Default and during the continuance thereof any of the rights exercisable and powers referenced in this Article 5; and

  

	 	(b)	to execute, upon the occurrence of an Event of Default and during the continuance thereof, all and singular such instruments, documents, and papers as Secured Party determines to be
appropriate in connection with the exercise of such rights and remedies and to cause the sale, license, assignment, transfer or other disposition of the Collateral, including all filings, recordings or registrations with the US PTO required or
appropriate to effect such dispositions of Collateral. 

 The within grant of a power of attorney, being coupled with an interest, shall be
irrevocable until this Agreement is terminated. 
 ARTICLE 6 
 ACKNOWLEDGEMENT BY DEBTOR 
  

	6.1	Acknowledgements 

 Debtor: 
  

	 	(a)	acknowledges and agrees that this Agreement may be assigned by Secured Party to any person, as Secured Party may determine as contemplated by Section 7.4(a) and, in such event,
such person shall be entitled to all of the rights and remedies of Secured Party as set forth in this Agreement or otherwise and Secured Party shall be released and discharged from its further obligations hereunder upon the assumption of same by the
assignee; 

  

	 	(b)	acknowledges and agrees that in connection with the exercise of Secured Party’s rights and remedies hereunder, any use by Secured Party of the Collateral shall be coextensive
with Debtor’s rights therein and with respect thereto and without any liability for royalties or other related charges from Secured Party to Debtor; 

  

	 	(c)	authorizes and requests that the Register of Copyrights and the Commissioner of Patents and Trademarks record this Security Agreement, and any amendments hereto, or copies hereof;
provided that this provision shall not preclude the filing by Debtor of the Collateral Assignment Agreement described in Section 3.1(f); and 

  

	 	(d)	 without in any way limiting any other indemnity provisions contained herein or in the Assignment Agreement, hereby indemnifies and holds Secured Party harmless from
and against any claim, suit, loss, damage or expense (including reasonable legal fees) (each, a “Claim”) arising out of any alleged defect in any product manufactured, promoted or sold by Debtor (or any of its Affiliates) in connection
with any Collateral or out of the manufacture, promotion, labeling, sale or 

  

 - 10 - 

	 	 
advertisement of any such product by Debtor (or any of its Affiliates), including any such Claim due to purported infringement of the Collateral or any
portion thereof upon the intellectual property rights or other rights of any other person or entity; provided that Debtor shall not be liable to Secured Party for the payment of any portion of such claim, suit, loss, damage or expense to the extent
resulting from Secured Party’s acts or omissions. 

 ARTICLE 7 
 MISCELLANEOUS 
  

	7.1	Notice 

 (a) Any notice, demand, direction or
other instrument required or permitted to be given hereunder or under the UCC shall be in writing and shall be given in the manner and addressed as set out in Section 10.6 of the Assignment Agreement. 
 (b) Either party may change its address for service from time to time by notice given in accordance with the foregoing. 
  

	7.2	Waiver 

 (a) Secured Party may waive, in
whole or in part, any breach by Debtor of any of the provisions of this Agreement, any default by Debtor in the payment or performance of any of the Obligations or any of its rights and remedies, whether provided for herein or otherwise, provided
that no such waiver shall be effective unless given by Secured Party to Debtor in writing. 
 (b) No waiver given in accordance with
Section 7.2(a) shall be a waiver of any other or subsequent breach by Debtor of any of the provisions of this Agreement, of any other or subsequent default by Debtor in the payment or performance of any of the Obligations or any of the rights
and remedies of Secured Party, whether provided for herein or otherwise. 
 (c) Secured Party may, at any time, grant extensions of time or
other indulgences to, accept compositions from or grant releases and discharges to Debtor in respect of the Collateral or otherwise deal with Debtor or with the Collateral and other security held by Secured Party, all as Secured Party may see fit,
and Debtor agrees that any such act or any failure by Secured Party to exercise any of its rights or remedies, whether provided for herein or otherwise, shall in no way affect or impair the Security Interest or the rights and remedies of Secured
Party, whether provided for in this Agreement or otherwise. 
  

	7.3	Termination 

 (a) This Agreement may be
terminated by written agreement made between Secured Party and Debtor. 
  

 - 11 - 

 (b) Upon indefeasible fulfillment of the Obligations (except the obligation to maintain confidentiality
pursuant to Section 10.1 of the Assignment Agreement), this Agreement shall terminate and all rights in the Collateral shall revert to the Debtor. 
 (c) Upon termination of this Agreement in accordance with this Section 7.3, Secured Party shall, at the request and expense of Debtor, make and do all such acts and things and execute and deliver all such
financing statements, instruments, agreements and documents as Debtor considers reasonably necessary or desirable to discharge the Security Interest, to release and discharge the Collateral therefrom and to record such release and discharge in all
appropriate offices of public record. 
  

	7.4	Assignment 

 (a) Upon notice in writing to
Debtor, this Agreement and all of the rights of Secured Party under this Agreement and the Assigned Interests shall be assignable by Secured Party without restriction. 
 (b) Neither this Agreement, nor any or all of the rights or obligations hereunder shall be assignable by Debtor without the prior written consent of Secured Party, provided that Debtor may without the prior consent of
Secured Party but with 30 days prior written notice to Secured Party assign this Agreement together with all of its rights hereunder to an Affiliate of Debtor to which Debtor assigns the Collateral, provided that such Affiliate assumes all of
Debtor’s obligations hereunder and is at least as credit-worthy as Debtor, and further provided that if at any time such Affiliate ceases to be an Affiliate of Debtor, then all rights and obligations under this Agreement shall revert to Debtor
or Debtor’s successor. 
 (c) This Agreement shall inure to the benefit of and be binding upon the parties and their respective
successors (including any successor by reason of merger, reorganization, sale of assets or statutory arrangement of any party) and permitted assigns. 
  

	7.5	Excess Payments 

 In the event that Secured
Party exercises any rights and remedies under this Agreement, any payments or amounts received by Secured Party in excess of the Obligations shall be paid to Debtor. 
  

	7.6	Further Assurances 

 Each party shall do such
acts and shall execute and deliver such further documents and instruments, and shall cause the doing of such acts and the execution and delivery of such further documents and instruments as are within its power and as the other party may in writing
at any time and from time to time reasonably request, in order to give full effect to the provisions and intent of this Agreement. 
  

 - 12 - 

	7.7	Execution in Counterparts and Facsimile Delivery 

 This Agreement may be executed in counterparts which together shall be deemed to constitute one valid and binding agreement, and valid delivery of the counterparts may be effected by means of a facsimile (including “pdf”)
transmission. 
 [The next page is the signature page.] 
  

 - 13 - 

 IN WITNESS WHEREOF the parties have executed this Agreement. 
  

			
	DRUG ROYALTY LP2, by its General
Partner DRC MANAGEMENT LLC2
		
	by	 	/S/ BEHZAD KHOSROWSHAHI
		 	Name: Behzad Khosrowshahi
		 	Title: Manager

  

			
	EPOCH BIOSCIENCES, INC.,
		
	by	 	/S/ DAVID LUDVIGSON
		 	Name: David Ludvigson
		 	Title: President and CEO

 Signature page for Security Agreement 

 Exhibit A 
 PATENTS AND PATENT APPLICATIONS

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