Document:

Exhibit
10.2

 

NEORX CORPORATION

 

 

NOTE AND WARRANT PURCHASE AGREEMENT

 

 

 

NEORX CORPORATION

NOTE AND WARRANT PURCHASE AGREEMENT

 

This Note and Warrant Purchase Agreement (the “Agreement”)
is made as of the 1st day of February, 2006 (the “Effective Date”) by and among NeoRx Corporation, a Washington corporation (the “Company”), and the persons and
entities named on the Schedule of Purchasers attached hereto (individually, a “Purchaser” and collectively, the “Purchasers”).

 

RECITALS

 

A.            The
Purchasers desire to purchase and the Company desires to sell, subject to
shareholder approval and the terms and conditions stated in that certain
Securities Purchase Agreement dated as the date hereof (the “Securities Purchase Agreement”), up
to a maximum of $65,000,000 of Common Stock and Warrants of the Company.

 

B.            To
provide the Company with additional resources to conduct its business and
pursue shareholder approval of the transactions contemplated by the Securities
Purchase Agreement, the Purchasers have agreed, subject to the terms and
conditions of this Agreement, to lend the Company the principal sum of approximately
Three Million Four Hundred Sixty Thousand Dollars ($3,460,000).

 

AGREEMENT

 

Now, Therefore, in consideration of the foregoing,
and the representations, warranties, covenants and conditions set forth below,
the Company and each Purchaser, intending to be legally bound, hereby agree as
follows:

 

1.                                      Amount and Terms of the Loan; Issuance of The
Warrants

 

1.1          The
Loan.  Subject to the terms of this
Agreement, each Purchaser set forth on the Schedule of Purchasers attached
hereto (each, a “Purchaser”) agrees to lend to
the Company at the Loan Closing (as defined in Section 4.3), the amount set
forth opposite each such Purchaser’s name under the column entitled “Loan
Amount” on the Schedule of Purchasers attached hereto (each, a “Loan Amount” and collectively, the “Total Loan Amount” or “Loan”) against the issuance and
delivery by the Company of a convertible promissory note or notes for such
amount(s), in substantially the form attached hereto as Exhibit A (each, a “Note” and
collectively, the “Notes”).  Each Note may be converted into shares of the
Company’s Common Stock as provided in such Note.

 

1.2          Issuance
of Warrants.  On the Loan Closing
Date (as defined in Section 4.3), the Company shall, as additional consideration
for the Loan, issue to each Purchaser a warrant in substantially the form
attached hereto as Exhibit B (each, a “Bridge Warrant” and collectively the
“Bridge Warrants”).

 

1

 

1.3          Definitions.  Capitalized terms not otherwise defined
herein shall have the respective meanings ascribed thereto in the Securities
Purchase Agreement.

 

2.                                      Representations and Warranties of the Company

 

2.1          Representations
and Warranties of the Company.  The
Company hereby covenants and agrees that all representations and warranties of
the Company set forth in Article 2 of the Securities Purchase Agreement are
true and correct as of the Loan Closing Date, which representations and
warranties are incorporated herein by this reference with the same force and
effect as though each such representation and warranty was set forth in full
herein.

 

3.                                      Representations and Warranties of the
Purchasers

 

3.1          Representations
and Warranties of the Purchasers.  Each
Purchaser hereby covenants and agrees that all representations and warranties of
the Purchasers set forth in Article 3 of the Securities Purchase Agreement are
true and correct as of the Loan Closing Date, which representations and
warranties are incorporated herein by this reference with the same force and
effect as though each such representation and warranty was set forth in full
herein.

 

4.                                      Conditions to Closing

 

4.1.         Conditions
to the Company’s Obligations under this Agreement.  The Company’s obligation to issue and
deliver the Notes and Bridge Warrants to each Purchaser is subject to the
fulfillment or waiver as of the Loan Closing Date of the following conditions:

 

(a)           Receipt of Proceeds.  The Company shall have received payment of
the Total Loan Amount, paid by the Purchasers pursuant to the allocation as set
forth opposite each Purchaser’s name on Exhibit A
hereto.  The Total Loan Amount shall be
paid in immediately available funds, in US dollars.

 

(b)           Representations
and Warranties.  The
representations and warranties made by each Purchaser in Article 3 of the
Securities Purchase Agreement and herein shall be true and correct in all
material respects when made and as of the Loan Closing Date.

 

(c)           Covenants.  All covenants, agreements and conditions
contained in this Agreement and the Securities Purchase Agreement to be
performed by the Purchasers on or prior to the Loan Closing Date shall have
been performed or complied with in all material respects.

 

(d)           Blue
Sky.  The
Company shall have obtained all necessary blue sky law permits and
qualifications, or secured exemptions therefrom, required by any state or
foreign or other jurisdiction for the issuance of the Notes, the Bridge
Warrants and the Issuable Common Stock (defined below).

 

(e)           Nasdaq
Qualification.  The shares of the Company’s
Common Stock issuable upon conversion of the Note and upon exercise of the
Bridge Warrants (the “Issuable Common Stock”)
shall be duly authorized for listing by Nasdaq, subject to official notice of
issuance, to the extent required by the rules of Nasdaq.

 

2

 

(f)            Absence
of Litigation.  No
proceeding challenging this Agreement or the Securities Purchase Agreement and the
other Related Agreements or the transactions contemplated hereby or thereby, or
seeking to prohibit, alter, prevent or materially delay the Loan Closing, shall
have been instituted or be pending before any court, arbitrator, governmental
body, agency or official.

 

(g)           No
Governmental Prohibition or Third Party Consents.  The issuance of the Notes, the Bridge
Warrants and the Issuable Common Stock by the Company shall not be prohibited
by any law or governmental order or regulation and any governmental, regulatory
or third party consents of approvals, if any, necessary for the sale of the
Notes, the Bridge Warrants and the Issuable Shares shall have been obtained.

 

4.2.         Conditions
to the Purchaser’s Obligations under this Agreement.  Each Purchaser’s obligation to complete the
purchase and sale of the Notes and Bridge Warrants is subject to the
fulfillment or waiver as of the Loan Closing Date of the following conditions:

 

(a)           Representations
and Warranties.  The representations and
warranties made by the Company in Article 2 of the Securities Purchase
Agreement and herein shall be true and correct in all material respects when
made and as of the Loan Closing Date.

 

(b)           Covenants.  All covenants, agreements and conditions
contained in this Agreement and the Securities Purchase Agreement to be
performed by the Company on or prior to the Loan Closing Date shall have been
performed or complied with in all material respects.

 

(c)           Compliance
with Laws.  The acquisition of the Notes,
the Bridge Warrants and the Issuable Common Stock by each Purchaser hereunder
shall be legally permitted by all laws and regulations to which each Purchaser
or the Company is subject (including all applicable federal, state and foreign
securities laws).

 

(d)           Legal
Opinion.  The Company shall have
delivered to such Purchaser an opinion, dated as of the Loan Closing Date, from
Perkins Coie LLP, counsel to the Company, in substantially the form attached
hereto as Exhibit D.

 

(e)           Nasdaq
Qualification.  The Issuable Common Stock
shall be duly authorized for listing by Nasdaq, subject to official notice of
issuance, to the extent required by the rules of Nasdaq.

 

(f)            Absence
of Litigation.  No proceeding challenging
this Agreement or the Securities Purchase Agreement and the Related Agreements
or the transactions contemplated hereby or thereby, or seeking to prohibit,
alter, prevent or materially delay the Loan Closing, shall have been instituted
or be pending before any court, arbitrator, governmental body, agency or
official.

 

(g)           No
Governmental Prohibition or Third Party Consents.   The issuance
of the Notes, the Bridge Warrants and the Issuable Common Stock by the Company
shall not be prohibited by any law or governmental order or regulation and any governmental,
regulatory or third party consents of approvals, if any, necessary for the sale
of the Notes, the Bridge Warrants and the Issuable Common Stock shall have been
obtained.

 

3

 

(h)           No
Material Adverse Effect. There shall not have occurred a Material Adverse Effect.

 

(i)            Execution
and Delivery of Documents.  The following
documents, in a form satisfactory to Purchasers, shall have been duly executed,
acknowledged and delivered by all parties thereto, and shall be in full force
and effect:

 

(i)            The
Securities Purchase Agreement;

 

(ii)           This
Agreement;

 

(iii)         The
Notes;

 

(iv)          The
Bridge Warrants;

 

(v)            A
certificate from an officer of the Company with respect to incumbency and
resolutions authorizing the execution and delivery of this Agreement and the Related
Agreements;

 

(vi)          A
Security Agreement of even date herewith the form of which is attached hereto
as Exhibit C (the “Security
Agreement” and collectively with the Securities Purchase
Agreement and this Agreement, the “Operative Agreements”);

 

(vii)         A
UCC National Form financing statement covering all of the Collateral described
in the Security Agreement shall have been recorded or filed for record in each
public office wherein such recording or filing is deemed necessary or
appropriate by the Purchasers to perfect the lien thereof as against creditors
of or purchasers from the Company. 
Without limiting the foregoing, all taxes, fees and other charges in
connection with the execution, delivery, recording and filing of the foregoing
instruments shall have been paid or allowance therefor shall have been made;

 

(viii)        Such
documents and evidence to establish the existence and good standing of the
Company and the authorization of the transactions contemplated by the Operative
Agreements; and

 

(ix)          Such other documents or certificates and completion of
such other matters, as the Purchasers may reasonably deem necessary or
appropriate.

 

(j)            The
Company and Texas State Bank shall have entered
into a Forbearance Agreement in the form acceptable to the Purchasers.

 

(k)           The Company and each holder of Series B Convertible
Preferred Stock shall have entered into the Irrevocable Agreement to
Convert Series B Convertible Preferred Stock in the form attached hereto as Exhibit E.

 

4.3          Closing Date.   The closing of the Loan
(the “Loan Closing”) shall be held
on the date upon which all of the conditions set forth in Sections 4.1 and 4.2
have been satisfied or waived by the party in whose favor such condition runs
(the “Loan Closing Date”).

 

4

 

4.4          Delivery
and Closing Actions.  At the Loan
Closing (i) each Purchaser shall deliver to the Company a check or wire
transfer funds in the principal amount of such Purchaser’s applicable Loan
Amount; (ii) the Company shall issue and deliver to each Purchaser concurrently
upon receipt of Purchaser’s Loan Amount (a) a Note in favor of such Purchaser
payable in the principal amount of such Purchaser’s applicable Loan Amount and
(b) a corresponding Bridge Warrant as specified in Section 1.2.

 

5.                                      Overall
Cap on Notes, Bridge Warrants and Common Shares Issuable to Purchasers.

 

5.1          Notwithstanding
anything in this Agreement, the Notes, the Bridge Warrants or the Operative
Agreements to the contrary, if the rules of Nasdaq require, the Purchaser shall
not have the right to acquire the Notes and the Bridge Warrants, or to convert
or exercise any portion thereof into shares of Common Stock in accordance with
their terms (such shares of Common Stock being referred to herein as “Conversion Shares”), to the extent
that either (i) the aggregate number of Conversion Shares issued and issuable
by the Company pursuant to the Notes and the Bridge Warrants exceeds 19.9% of
the number of shares of Common Stock or the voting power of the Company
outstanding on the original date of issuance of the Notes and the Bridge
Warrants (“Date of Original Issuance”)
or (ii) after giving effect to such acquisition, conversion or exercise, the Purchaser
(together with the Purchaser’s affiliates) would beneficially own in excess of
19.9% of the number of shares of the Common Stock or the voting power of the
Company outstanding immediately after the Loan Closing (the securities issued
and issuable up to and in compliance with the 19.9% thresholds described in
clauses (i) and (ii) above being referred to herein as the “Issuable Maximum”), unless the issuance
of securities in excess of the Issuable Maximum shall first be approved by the
Company’s shareholders in accordance with applicable law and the Bylaws and
Articles of Incorporation of the Company. 
If at the time of any potential issuance of the Notes and the Bridge
Warrants, or any conversion or exercise thereof, the Conversion Shares issued
and issuable exceed the Issuable Maximum (and if the Company has not previously
obtained the required shareholder approval), the Company shall issue to the Purchaser
a number of Notes, Bridge Warrants and Conversion Shares not exceeding the
Issuable Maximum, and the remainder of the Notes, Warrants and Conversion
Shares to be issued shall constitute “Excess Securities”
pursuant to Section 5.2 below.

 

5.2          In
the event that the Purchaser’s receipt of the Notes, Bridge Warrants and
Conversion Shares is restricted based on the Issuable Maximum, the Company
shall promptly call a shareholder’s meeting for the purpose of obtaining
shareholder approval of the issuance of the Excess Securities to the
Purchaser.  No Conversion Shares issued upon
exercise of any Notes or Bridge Warrants acquired pursuant to this Agreement shall
be entitled to vote to approve the issuance of the Excess Shares.

 

5.3          Neither
the Company nor the Purchasers may waive the provisions of this Section 5.

 

6.                                      Miscellaneous

 

6.1          Binding
Agreement.  The terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective successors and
assigns of the parties.  Nothing

 

5

 

in this Agreement,
expressed or implied, is intended to confer upon any third party any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

 

6.2          Governing
Law.  This Agreement shall be
governed by and construed under the laws of the State of California, without
giving effect to conflicts of laws principles.

 

6.3          Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

6.4          Titles
and Subtitles.  The titles and
subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.

 

6.5          Notices.  All notices required or permitted hereunder
shall be in writing and shall be deemed effectively given: (a) upon
personal delivery to the party to be notified, (b) when sent by confirmed
telex, electronic mail or facsimile if sent during normal business hours of the
recipient, if not, then on the next business day, (c) five (5) days after
having been sent by registered or certified mail, return receipt requested,
postage prepaid, or (d) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written
verification of receipt.  All
communications shall be sent to the Company at NeoRx Corporation, 300 Elliott
Avenue, West, Suite 500, Seattle, WA 98119, Attention: Chief Financial Officer,
cc: Vice President- Legal, with copy to Perkins Coie LLP, 1201 Third Avenue,
Suite 4800, Seattle, WA 98101, Attention: Faith M. Wilson, and to Purchaser(s)
at the address(es) set forth on the Schedule of Purchasers attached hereto or
at such other address(es) as the Company or Purchase(s)r may designate by ten
(10) days advance written notice to the other parties hereto.

 

6.6          Modification;
Waiver.  No modification or permitted
waiver of any provision of this Agreement or consent to departure therefrom
shall be effective unless in writing and approved by the Company and the
Purchasers (i) that have agreed to purchase a 60%  in interest of the aggregate principal amount
of the Notes to be issued, or (ii) if after the Note Closing, that hold at
least 60% in interest of the aggregate principal amount of the then outstanding
Notes; provided, however, that any such modification, waiver or consent that
adversely affects any Purchaser in a different manner than other Purchasers
shall require the consent of such Purchaser. 
For purposes of this provision, differences in investments or ownership
among Purchasers shall not be considered as a basis for determining whether a
modification, waiver or consent results in adversely affecting a Purchaser in a
different manner.

 

6.7          Delays
or Omissions.  It is agreed that no
delay or omission to exercise any right, power or remedy accruing to each
Purchaser, upon any breach or default of the Company under this Agreement, the
Security Agreement or any Note or Bridge Warrant shall impair any such right,
power or remedy, nor shall it be construed to be a waiver of any such breach or
default, or any acquiescence therein, or of or in any similar breach or default
thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter
occurring.  It is further agreed that any
waiver, permit, consent or approval of any kind or character by the Purchasers
of any breach or default under this Agreement, or any waiver by any Purchaser
of any provisions or conditions of this Agreement

 

6

 

must be in writing and
shall be effective only to the extent specifically set forth in writing and
that all remedies, either under this Agreement, or by law or otherwise afforded
to the Purchaser, shall be cumulative and not alternative.

 

6.8          Entire
Agreement.  This Agreement, the Exhibits
hereto and the Security Agreement constitute the full and entire understanding
and agreement between the parties with regard to the subjects hereof and no
party shall be liable or bound to any other party in any manner by any
representations, warranties, covenants and agreements except as specifically
set forth herein.

 

7

 

In Witness Whereof, the parties have executed this Note and Warrant Purchase
Agreement  as of the date first written above.

 

 

	
   

  	
  NeoRx
  Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/  Gerald Mcmahon

  	
   

  
	
   

  	
  Gerald McMahon

  
	
   

  	
  Chairman and Chief
  Executive Officer

  

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

IN
WITNESS WHEREOF, the parties have executed this NOTE AND WARRANT PURCHASE AGREEMENT as of the date first
written above.

 

	
   

  	
  PURCHASERS:

  
	
   

  	
  DEERFIELD SPECIAL
  SITUATIONS FUND,

  LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Darren Levine

  	
   

  
	
   

  	
  Name:

  	
  Darren Levine

  	
   

  
	
   

  	
  Title:

  	
  CFO

  	
   

  
						

 

SIGNATURE PAGE TO NOTE
AND WARRANT PURCHASE AGREEMENT

 

 

IN
WITNESS WHEREOF, the parties have executed this NOTE AND WARRANT PURCHASE AGREEMENT as of the date first
written above.

 

	
   

  	
  PURCHASERS:

  
	
   

  	
  DEERFIELD SPECIAL
  SITUATIONS FUND

  INTERNATIONAL, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Darren Levine

  	
   

  
	
   

  	
  Name:

  	
  Darren Levine

  	
   

  
	
   

  	
  Title:

  	
  CFO

  	
   

  
						

 

SIGNATURE PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MPM
  BIOVENTURES III, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:     MPM
  BioVentures III GP, L.P., its 

  General Partner

  
	
   

  	
  By:   MPM
  BioVentures III LLC, its General 

  Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Nicholas J. Simon

  	
   

  
	
   

  	
  Name:
  Nicholas J. Simon

  
	
   

  	
  Title:
  Series A Member

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The John Hancock Tower

  	
   

  
	
   

  	
   

  	
  200
  Clarendon Street, 54th Floor

  	
   

  
	
   

  	
   

  	
  Boston, MA 02116

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MPM
  BIOVENTURES III-QP, L.P.

  
	
   

  	
   

  
	
   

  	
  By:     MPM
  BioVentures III GP, L.P., its 

  General Partner

  
	
   

  	
  By:   MPM
  BioVentures III LLC, its General 

  Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Nicholas J. Simon

  	
   

  
	
   

  	
  Name:
  Nicholas J. Simon

  
	
   

  	
  Title:
  Series A Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The
  John Hancock Tower

  	
   

  
	
   

  	
   

  	
  200
  Clarendon Street, 54th Floor

  	
   

  
	
   

  	
   

  	
  Boston, MA 02116

  	
   

  
							

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MPM
  BIOVENTURES III GMBH & CO.

  BETEILIGUNGS KG

  
	
   

  	
   

  	
   

  
	
   

  	
  By:   MPM
  BioVentures III GP, L.P., in its

  capacity as the Managing Limited Partner

  
	
   

  	
  By:   MPM
  BioVentures III LLC, its General 

  Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Nicholas J. Simon

  	
   

  
	
   

  	
  Name:
  Nicholas J. Simon

  
	
   

  	
  Title:
  Series A Member

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The
  John Hancock Tower

  	
   

  
	
   

  	
   

  	
  200
  Clarendon Street, 54th Floor

  	
   

  
	
   

  	
   

  	
  Boston, MA 02116

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MPM
  BIOVENTURES III PARALLEL

  FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By:    MPM
  BioVentures III GP, L.P., its 

  General Partner

  
	
   

  	
  By:   MPM
  BioVentures III LLC, its General 

  Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Nicholas J. Simon

  	
   

  
	
   

  	
  Name:
  Nicholas J. Simon

  
	
   

  	
  Title:
  Series A Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The
  John Hancock Tower

  	
   

  
	
   

  	
   

  	
  200
  Clarendon Street, 54th Floor

  	
   

  
	
   

  	
   

  	
  Boston, MA 02116

  	
   

  
							

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MPM ASSET MANAGEMENT INVESTORS 

  2005 BVIII LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Nicholas J. Simon

  	
   

  
	
   

  	
  Name:
  Nicholas J. Simon

  
	
   

  	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The John Hancock Tower

  	
   

  
	
   

  	
   

  	
  200 Clarendon Street, 54th Floor

  	
   

  
	
   

  	
   

  	
  Boston, MA 02116

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MPM BIOEQUITIES MASTER FUND, LP

  
	
   

  	
   

  
	
   

  	
  By:  MPM BioEquities GP, L.P.,
  its General 

  Partner

  
	
   

  	
  By:  MPM BioEquities GP LLC,
  its General 

  Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kurt Von Emster

  	
   

  
	
   

  	
   

  	
   Manager

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The John Hancock Tower

  	
   

  
	
   

  	
   

  	
  200 Clarendon Street, 54th
  Floor

  	
   

  
	
   

  	
   

  	
  Boston, MA 02116

  	
   

  
						

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Bay City Capital Management IV, LLC

  
	
   

  	
  General Partner of:

  
	
   

  	
  Bay City Capital Fund IV Co-Investment

  Fund, L.P.

  
	
   

  	
   

  
	
   

  	
  /s/ Carl S. Goldfisher

  	
   

  
	
   

  	
  By:
  Bay City Capital LLC, its Manager

  
	
   

  	
  By: Carl S. Goldfisher,
  M.D., a Managing 

  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Bay City Capital

  	
   

  
	
   

  	
   

  	
  750 Battery
  Street, Suite 400

  	
   

  
	
   

  	
   

  	
  San Francisco,
  CA 94111

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Bay City Capital Management IV, LLC

  General Partner of:

  
	
   

  	
  Bay City Capital Fund IV, L.P.

  
	
   

  	
   

  
	
   

  	
  /s/ Carl S. Goldfisher

  	
   

  
	
   

  	
  By:
  Bay City Capital LLC, its Manager

  
	
   

  	
  By: Carl S. Goldfisher,
  M.D., a Managing 

  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Bay City Capital

  	
   

  
	
   

  	
   

  	
  750 Battery
  Street, Suite 400

  	
   

  
	
   

  	
   

  	
  San Francisco,
  CA 94111

  	
   

  
					

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
  ABINGWORTH BIOVENTURES IV
  EXECUTIVES 

  L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Abell

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Abingworth Management Ltd.

  	
   

  
	
   

  	
  Name:

  	
  James Abell

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
					

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
  ABINGWORTH BIOEQUITIES MASTER
  FUND

  LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Abell

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Abingworth Management Ltd.

  	
   

  
	
   

  	
  Name:

  	
  James Abell

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
					

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
  ABINGWORTH BIOVENTURES IV L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Abell

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Abingworth Management Ltd.

  	
   

  
	
   

  	
  Name:

  	
  James Abell

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
					

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

	
   

  	
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
  SMITHFIELD FIDUCIARY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam J. Chill

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Adam J. Chill

  
	
   

  	
   

  
	
   

  	
  Title: Authorized
  Signatory

  

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

	
   

  	
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven Bloom

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Steven Bloom

  
	
   

  	
   

  
	
   

  	
  Title: Managing Director,
  Sagamore Hill Capital

  Management, on behalf of Sagamore Hill Hub Fund,

  Ltd.

  
	
   

  	
   

  
	
   

  	
  One Manhattanville Road

  
	
   

  	
   

  
	
   

  	
  Purchase, NY 10577

  
				

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

	
   

  	
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
  SHEPHERD INVESTMENTS

  
	
   

  	
  INTERNATIONAL, LTD.

  
	
   

  	
   

  
	
   

  	
  BY: STARK OFFSHORE MANAGEMENT,
  LLC

  ITS INVESTMENT MANAGER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael A. Roth

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Michael A. Roth

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  	
   

  
						

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
  T. ROWE PRICE ASSOCIATES, INC.,
  AS

  REGISTERED INVESTMENT ADVISER TO

  
	
   

  	
  THE PARTICIPATING T. ROWE PRICE

  ACCOUNTS IN THE SCHEDULE OF

  PURCHASERS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kris H. Jenner

  	
   

  
	
   

  	
  (signature)

  
	
   

  	
   

  
	
   

  	
  Kris H. Jenner, Vice
  President

  	
   

  
	
   

  	
  (print name and title)

  
	
   

  	
   

  
	
   

  	
  100 E. Pratt Stret

  
	
   

  	
   

  
	
   

  	
  Baltimore, MD 21202

  
	
   

  	
   

  
	
   

  	
   

  	
  Attn: Darrell N. Braman

  
	
   

  	
   

  	
  Vice President and
  Associate

  
	
   

  	
   

  	
  Legal Counsel

  
	
   

  	
   

  	
  100 E. Pratt Street

  
	
   

  	
   

  	
  Baltimore, MD 21202

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Phone: 410-345-2013

  
	
   

  	
   

  	
  Facsimile: 410-345-6575

  
					

 

 

SIGNATURE
PAGE TO NOTE AND WARRANT PURCHASE AGREEMENT

 

 

SCHEDULES AND EXHIBITS

 

Schedule of Purchasers

 

Exhibit A:  Form of Convertible Promissory Note

 

Exhibit B:  Form of Bridge Warrant

 

Exhibit C:  Form of Security Agreement

 

Exhibit D:  Form of the Opinion of the Company’s counsel

 

Exhibit E:  Irrevocable Agreement
to Convert Series B Preferred Stock

 

 

SCHEDULE OF PURCHASERS

 

	
  Name and Address

  	
   

  	
  Loan Amount

  	
   

  	
  Warrant Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Abingworth
  BioEquities Master Fund Ltd.

  38 Jermyn Street

  London, England SW1Y6DN

  Attention: James Abell

  	
   

  	
  $

  	
  146,384.60

  	
   

  	
  104,560

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Abingworth
  Bioventures IV Executives LP

  38 Jermyn Street

  London, England SW1Y6DN

  Attention: James Abell

  	
   

  	
  $

  	
  1,018.43

  	
   

  	
  727

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Abingworth
  Bioventures IV LP

  38 Jermyn Street

  London, England SW1Y6DN

  Attention: James Abell

  	
   

  	
  $

  	
  118,750.81

  	
   

  	
  84,822

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bay City Capital
  Fund IV Co-Investment Fund, L.P.

  750 Battery Street, Suite 400

  San Francisco, CA 94111

  Attention: Judy Koh

  	
   

  	
  $

  	
  16,847.54

  	
   

  	
  12,034

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bay City Capital
  Fund IV, L.P.

  750 Battery Street, Suite 400

  San Francisco, CA 94111

  Attention: Judy Koh

  	
   

  	
  $

  	
  781,614.00

  	
   

  	
  558,295

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deerfield
  Special Situations Fund International, Ltd.

  780 3rd Avenue,
  37th Floor

  New York, NY 10017

  Attention: Darren Levine

  	
   

  	
  $

  	
  259,500

  	
   

  	
  185,357

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deerfield
  Special Situations Fund, LP

  780 3rd Avenue, 37th Floor

  New York, NY 10017

  Attention: Darren Levine

  	
   

  	
  $

  	
  139,730.77

  	
   

  	
  99,807

  	
   

  

 

 

	
  MPM Asset
  Management Investors 2005 BVIII LLC

  The John Hancock Tower

  200 Clarendon Street, 54th Floor

  Boston, MA 02116

  Attention: Nicholas Simon

  	
   

  	
  $

  	
  19,648.82

  	
   

  	
  14,035

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MPM BioEquities
  Master Fund, LP

  The John Hancock Tower

  200 Clarendon Street, 54th Floor

  Boston, MA 02116

  Attention: Nicholas Simon

  	
   

  	
  $

  	
  159,692.34

  	
   

  	
  114,066

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MPM BioVentures
  III GmbH & Co.

  Beteiligungs KG

  The John Hancock Tower

  200 Clarendon Street, 54th Floor

  Boston, MA 02116

  Attention: Nicholas Simon

  	
   

  	
  $

  	
  93,739.39

  	
   

  	
  66,956

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MPM BioVentures
  III Parallel Fund, L.P.

  The John Hancock Tower

  200 Clarendon Street, 54th Floor

  Boston, MA 02116

  Attention: Nicholas Simon

  	
   

  	
  $

  	
  33,508.77

  	
   

  	
  23,935

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MPM BioVentures
  III, L.P.

  The John Hancock Tower

  200 Clarendon Street, 54th Floor

  Boston, MA 02116

  Attention: Nicholas Simon

  	
   

  	
  $

  	
  74,589.61

  	
   

  	
  53,278

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MPM BioVentures
  III-QP, L.P.

  The John Hancock Tower

  200 Clarendon Street, 54th Floor

  Boston, MA 02116

  Attention: Nicholas Simon

  	
   

  	
  $

  	
  1,109,282.61

  	
   

  	
  792,344

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sagamore Hill
  Hub Fund, Ltd.

  One Manhattanville Road

  Purchase, NY 10577

  Attention: Patrick Sikes

  	
   

  	
  $

  	
  52,863.73

  	
   

  	
  37,760

  	
   

  

 

 

	
  Shepherd
  Investments International, Ltd.

  3600 South Lake Drive

  St. Francis, WI 53235

  Attention: Todd Turall

  	
   

  	
  $

  	
  239,538.46

  	
   

  	
  171,099

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smithfield
  Fiduciary LLC

  c/o Highbridge Capital Management LLC

  9 West 57th Street, 27th Floor

  New York, NY 10019

  Attention: Ari J. Storch

  	
   

  	
  $

  	
  79,846.15

  	
   

  	
  57,033

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T. Rowe Price
  Health Sciences Fund, Inc.

  c/o Darrell N. Braman

  100 East Pratt Street

  Baltimore, MD 21202

  	
   

  	
  $

  	
  99,115.69

  	
   

  	
  70,797

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  T. Rowe Price
  Health Sciences Portfolio, Inc.

  c/o Darrell N. Braman

  100 East Pratt Street

  Baltimore, MD 21202

  	
   

  	
  $

  	
  745.23

  	
   

  	
  532

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TD Mutual Funds
  - TD Health Sciences Fund

  c/o Darrell N. Braman

  100 East Pratt Street

  Baltimore, MD 21202

  	
   

  	
  $

  	
  7,325.62

  	
   

  	
  5,232

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VALIC Company I –
  Health Sciences Fund

  c/o Darrell N. Braman

  100 East Pratt Street

  Baltimore, MD 21202

  	
   

  	
  $

  	
  8,391.33

  	
   

  	
  5,994

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  John Hancock
  Trust – Health Sciences Trust

  c/o Darrell N. Braman

  100 East Pratt Street

  Baltimore, MD 21202

  	
   

  	
  $

  	
  16,409.20

  	
   

  	
  11,721

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Raytheon Company
  Combined DB/DC Master Trust - Health Sciences

  c/o Darrell N.
  Braman

  100 East Pratt Street

  Baltimore, MD 21202

  	
   

  	
  $

  	
  1,456.93

  	
   

  	
  1,040

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  3,460,000.03

  	
   

  	
  2,471,424

  	
   

  

 

 

Exhibit A

 

Form of
Convertible Promissory Note

 

A-1

 

Exhibit B

 

Form of
Warrant

 

B-1

 

Exhibit C

 

Form of
Security Agreement

 

2

 

Exhibit D

 

Form of
Legal Opinion

 

3

 

Exhibit E

 

Irrevocable
Agreement to Convert Series B Convertible Preferred Stock

 

4Exhibit 10.3

 

NEORX CORPORATION

 

SECURITY
AGREEMENT

 

THIS SECURITY AGREEMENT dated as of February 1, 2006
(“Securities Agreement”), is made by
and among NeoRx Corporation, a Washington corporation (“Grantor”),
and the secured parties listed on the signature pages hereto (each, a “Secured Party” and, collectively,
the “Secured Parties”).

 

RECITALS

 

A.            Each Secured Party has made and has
agreed to make certain advances of money and to extend certain financial
accommodation to Grantor as evidenced by those certain convertible promissory
notes of even date herewith executed by Grantor in favor of each Secured Party
pursuant to that certain Note and Warrant Purchase Agreement (the “Purchase Agreement”) of even date
herewith by and between Grantor and the Secured Parties, (each, a “Note” and, collectively, the “Notes”), such advances and financial
accommodations being referred to herein as the “Loans”.

 

B.            The Secured Parties are willing to
make the Loans to Grantor, but only upon the condition, among others, that Grantor
shall have executed and delivered to the Secured Parties this Security
Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in order to induce the Secured
Parties to make the Loans and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, and intending to be
legally bound, Grantor hereby represents, warrants, covenants and agrees as
follows:

 

1.             DEFINED TERMS.  When used in this Security Agreement the
following terms shall have the following meanings (such meanings being equally
applicable to both the singular and plural forms of the terms defined):

 

“Bankruptcy Code” means Title 11 of
the United States Code, as amended or modified from time to time.

 

“Collateral” shall have the meaning
assigned to such term in Section 2
of this Security Agreement.

 

“Contracts” means all contracts
(including any customer, vendor, supplier, service or maintenance contract),
leases, licenses, undertakings, purchase orders, permits, franchise agreements
or other agreements (other than any right evidenced by Chattel Paper, Documents
or Instruments), whether in written or electronic form, in or under which
Grantor now holds or hereafter acquires any right, title or interest,
including, without limitation, with respect to an Account, any agreement
relating to the terms of payment or the terms of performance thereof.

 

1

 

“Copyright License” means any
agreement, whether in written or electronic form, in which Grantor now holds or
hereafter acquires any interest, granting any right in or to any Copyright or
Copyright registration (whether Grantor is the licensee or the licensor
thereunder) including, without limitation, licenses pursuant to which Grantor
has obtained the exclusive right to use a copyright owned by a third party.

 

“Copyrights” means all of the
following now owned or hereafter acquired or created (as a work for hire for
the benefit of Grantor) by Grantor or in which Grantor now holds or hereafter
acquires or receives any right or interest, in whole or in part: (a) all
copyrights, whether registered or unregistered, held pursuant to the laws of
the United States, any State thereof or any other country; (b) registrations,
applications, recordings and proceedings in the United States Copyright Office
or in any similar office or agency of the United States, any State thereof or
any other country; (c) any continuations, renewals or extensions thereof; (d)
any registrations to be issued in any pending applications, and shall include
any right or interest in and to work protectable by any of the foregoing which
are presently or in the future owned, created or authorized (as a work for hire
for the benefit of Grantor) or acquired by Grantor, in whole or in part; (e)
prior versions of works covered by copyright and all works based upon, derived
from or incorporating such works; (f) income, royalties, damages, claims and
payments now and hereafter due and/or payable with respect to copyrights,
including, without limitation, damages, claims and recoveries for past, present
or future infringement; (g) rights to sue for past, present and future
infringements of any copyright; and (h) any other rights corresponding to any
of the foregoing rights throughout the world.

 

“Event of Default” means (i) any failure
by Grantor forthwith to pay or perform any of the Secured Obligations, (ii) any
breach by Grantor of any warranty, representation, or covenant set forth herein
and (iii) any default or event of default under any Note; provided however,
that each of the foregoing events shall only constitute an Event of Default
upon the expiration of any cure period related to such event.

 

“Intellectual
Property” means any intellectual property, in any medium, of any
kind or nature whatsoever, now or hereafter owned or acquired or received by
Grantor or in which  Grantor now holds or
hereafter acquires or receives any right or interest, and shall include, in any
event, any Copyright, Trademark, Patent, trade secret, customer list, internet
domain name (including any right related to the registration thereof),
proprietary or confidential information, mask work, source, object or other
programming code, invention (whether or not patented or patentable), technical
information, procedure, design, knowledge, know-how, software, data base,
data, skill, expertise, recipe, experience, process, model, drawing, material
or record.

 

“License” means any Copyright
License, Patent License, Trademark License or other license of rights or
interests, whether in-bound or out-bound, whether in written or electronic
form, now or hereafter owned or acquired or received by Grantor or in which
Grantor now holds or hereafter acquires or receives any right or interest, and
shall include any renewals or extensions of any of the foregoing thereof.

 

“Lien” means any mortgage, lien, deed
of trust, charge, pledge, security interest or other encumbrance.

 

2

 

“Patent License” means any agreement,
whether in written or electronic form, in which Grantor now holds or hereafter
acquires any interest, granting any right with respect to any invention on
which a Patent is in existence (whether Grantor is the licensee or the licensor
thereunder).

 

“Patents” means all of the following
in which Grantor now holds or hereafter acquires any interest: (a) all letters
patent of the United States or any other country, all registrations and
recordings thereof and all applications for letters patent of the United States
or any other country, including, without limitation, registrations, recordings
and applications in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country; (b)all reissues, divisions, continuations, renewals, continuations-in-part
or extensions thereof; (c) all petty patents, divisionals and patents of
addition; (d) all patents to issue in any such applications; (e) income,
royalties, damages, claims and payments now and hereafter due and/or payable
with respect to patents, including, without limitation, damages, claims and
recoveries for past, present or future infringement; and (f) rights to sue for
past, present and future infringements of any patent.

 

“Permitted Lien” means: (a) any Liens
existing on the date of this Security Agreement and set forth on Schedule A
attached hereto; (b) Liens for taxes, fees, assessments or other governmental
charges or levies, either not delinquent or being contested in good faith by
appropriate proceedings; (c) Liens (i) upon or in any Equipment acquired or
held by Grantor to secure the purchase price of such Equipment or indebtedness
incurred solely for the purpose of financing the acquisition of such Equipment
or (ii) existing on such Equipment at the time of its acquisition, provided
that the Lien is confined solely to the Equipment so acquired, improvements
thereon and the Proceeds of such Equipment; (d) leases or subleases and
licenses or sublicenses granted to others and existing as of the date of this
Security Agreement; (e) any right, title or interest of a licensor under a
license existing as of the date of this Security Agreement; (f) Liens
arising from judgments, decrees or attachments; (g) easements, reservations,
rights-of-way, restrictions, minor defects or irregularities in title and other
similar Liens affecting real property not interfering in any material respect
with the ordinary conduct of the business of Grantor; (h) Liens in favor of
customs and revenue authorities arising as a matter of law to secure payment of
customs duties in connection with the importation of goods; (i) Liens arising
solely by virtue of any statutory or common law provision relating to banker’s
liens, rights of setoff or similar rights and remedies as to deposit accounts
or other funds maintained with a creditor depository institution; (j) Liens on
equipment and other personal property (including proceeds thereof and
accessions thereto) securing capital or operating lease obligations, including
without limitation sale and lease-back transactions; and (k) Liens, not
otherwise permitted, which Liens do not in the aggregate exceed $100,000 at any
one time.

 

“Pro Rata” means, as to any Secured
Party at any time, the percentage equivalent at such time of such Secured Party’s
aggregate unpaid principal amount of Loans, divided by the combined aggregate
unpaid principal amount of all Loans of all Secured Parties.

 

“Required
Lenders” means any Secured Party or group of Secured
Parties holding at least sixty percent (60%) of the outstanding and unpaid
principal amount under all Loans of all Secured Parties.

 

3

 

“Secured Obligations” means (a) the
obligation of Grantor to repay the Secured Parties all of the unpaid principal
amount of, and accrued interest on (including any interest that accrues after
the commencement of bankruptcy), the Loans and (b) the obligation of Grantor to
pay any fees, costs and expenses of Secured Party under Section 6(c)
hereof.

 

“Security Agreement” means this
Security Agreement and all Schedules hereto, as the same may from time to time
be amended, modified, supplemented or restated.

 

“Trademark License” means any
agreement, whether in written or electronic form, in which Grantor now holds or
hereafter acquires any interest, granting any right in and to any Trademark or
Trademark registration (whether Grantor is the licensee or the licensor
thereunder).

 

“Trademarks” means any of the
following in which Grantor now holds or hereafter acquires any interest: (a)
any trademarks, tradenames, corporate names, company names, business names,
trade styles, service marks, logos, other source or business identifiers,
prints and labels on which any of the foregoing have appeared or appear,
designs and general intangibles of like nature, now existing or hereafter
adopted or acquired, all registrations and recordings thereof and any
applications in connection therewith, including, without limitation,
registrations, recordings and applications in the United States Patent and
Trademark Office or in any similar office or agency of the United States, any
State thereof or any other country (collectively, the “Marks”); (b) any
reissues, extensions or renewals thereof; (c) the goodwill of the business
symbolized by or associated with the Marks; (d) income, royalties, damages,
claims and payments now and hereafter due and/or payable with respect to the
Marks, including, without limitation, damages, claims and recoveries for past,
present or future infringement; and (e) rights to sue for past, present and
future infringements of the Marks.

 

“UCC” means the Uniform Commercial
Code as the same may from time to time be in effect in the State of California
(and each reference in this Security Agreement to an Article thereof
(denoted as a Division of the UCC as adopted and in effect in the State of
California) shall refer to that Article (or Division, as applicable) as
from time to time in effect, which in the case of Article 9 shall include
and refer to Revised Article 9 from and after the date Revised Article 9
shall become effective in the State of California); provided,
however, in the event that, by reason of mandatory provisions of
law, any or all of the attachment, perfection or priority of the Secured
Parties’ security interest in any Collateral is governed by the Uniform Commercial
Code as in effect in a jurisdiction other than the State of California, the
term “UCC” shall mean the Uniform Commercial
Code (including the Articles thereof) as in effect at such time in such other
jurisdiction for purposes of the provisions hereof relating to such attachment,
perfection or priority and for purposes of definitions related to such
provisions.

 

In addition, the
following terms shall be defined terms having the meaning set forth for such
terms in the UCC: “Account” (including health-care-insurance receivables), “Account
Debtor”, “Chattel Paper” (including tangible and electronic chattel paper), “Commercial
Tort Claims”, “Commodity Account”, “Deposit Account”, “Documents”, “Equipment”
(including all accessions and additions thereto), “Fixtures”, “General
Intangible” (including payment intangibles and software), “Instrument”, “Inventory”
(including all goods held for sale or lease or to be furnished under a contract
of service, and including returns and repossessions), “Investment

 

4

 

Property”
(including securities and securities entitlements), “Letter-of-Credit Right”
(whether or not the letter of credit is evidenced by a writing), “Payment
Intangibles”, “Proceeds”, “Promissory Notes”, “Securities Account”, and “Supporting
Obligations”. Each of the foregoing defined terms shall include all of such
items now owned, or hereafter acquired, by Grantor.

 

2.             GRANT OF SECURITY INTEREST.  As collateral security for the full, prompt,
complete and final payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of all the Secured Obligations and in
order to induce the Secured Parties to cause the Loans to be made, Grantor
hereby assigns, conveys, mortgages, pledges, hypothecates and transfers to the
Secured Parties, and hereby grants to the Secured Parties, a security interest
in all of Grantor’s right, title and interest in, to and under the following,
whether now owned or hereafter acquired, (all of which being collectively
referred to herein as the “Collateral”):

 

(a)           All
Accounts of Grantor;

 

(b)           All
Chattel Paper of Grantor;

 

(c)           All
Commercial Tort Claims of Grantor;

 

(d)           All
Contracts of Grantor;

 

(e)           All
Deposit Accounts of Grantor;

 

(f)            All
Documents of Grantor;

 

(g)           All
Equipment of Grantor;

 

(h)           All
Fixtures of Grantor;

 

(i)            All
General Intangibles of Grantor, including,
without limitation, Payment Intangibles, all Copyrights, Patents, Trademarks,
Licenses, designs, drawings, technical information, marketing plans, customer
lists, trade secrets, proprietary or confidential information, inventions
(whether or not patentable), procedures, know-how, models and data;

 

(j)            All
Instruments of Grantor, including, without limitation, Promissory Notes;

 

(k)           All
Inventory of Grantor;

 

(l)            All
Investment Property of Grantor;

 

(m)          All
Letter-of Credit Rights of Grantor;

 

(n)           All
Supporting Obligations of Grantor;

 

(o)           All
property of Grantor held by any Secured Party, or any other party for whom any
Secured Party is acting as agent hereunder, including, without limitation, all
property of every-description now or hereafter in the possession or custody of
or in transit to any Secured

 

5

 

Party
or such other party for any purpose, including, without limitation,
safekeeping, collection or pledge, for the account of Grantor, or as to which
Grantor may have any right or power;

 

(p)           All
other goods and personal property of Grantor, wherever located, whether
tangible or intangible, and whether now owned or hereafter acquired, existing,
leased or consigned by or to Grantor; and

 

(q)           To
the extent not otherwise included, all Proceeds of each of the foregoing and
all accessions to, substitutions and replacements for and rents, profits and
products of each of the foregoing.

 

Notwithstanding the foregoing provisions of this Section 2, the grant, assignment and transfer of a
security interest as provided herein shall not extend to, and the term “Collateral” shall not include:  (a) ”intent-to-use” trademarks at all
times prior to the first use thereof, whether by the actual use thereof in
commerce, the recording of a statement of use with the United States Patent and
Trademark Office or otherwise or (b) any Investment Property of Grantor consisting
of any ownership interest in NeoRx Manufacturing Group, Inc. or any goods,
personal property, rights or other assets (tangible or intangible) of NeoRx
Manufacturing Group, Inc. or (c) any Contract, Instrument or Chattel Paper in
which Grantor has any right, title or interest if and to the extent such
Contract, Instrument or Chattel Paper includes a provision containing a
restriction on assignment such that the creation of a security interest in the
right, title or interest of Grantor therein would be prohibited and would, in
and of itself, cause or result in a default thereunder enabling another person
party to such Contract, Instrument or Chattel Paper to enforce any remedy with
respect thereto; provided that the foregoing
exclusion shall not apply if (i) such prohibition has been waived or such other
person has otherwise consented to the creation hereunder of a security interest
in such Contract, Instrument or Chattel Paper or (ii) such prohibition
would be rendered ineffective pursuant to Sections 9-407(a) or 9-408(a) of the
UCC, as applicable and as then in effect in any relevant jurisdiction, or any
other applicable law (including the Bankruptcy Code) or principles of equity); provided further that immediately upon the ineffectiveness,
lapse or termination of any such provision, the Collateral shall include, and
Grantor shall be deemed to have granted a security interest in, all its rights,
title and interests in and to such Contract, Instrument or Chattel Paper as if
such provision had never been in effect; and provided
further that the foregoing exclusion shall in no way be construed so
as to limit, impair or otherwise affect any Secured Party’s unconditional
continuing security interest in and to all rights, title and interests of
Grantor in or to any payment obligations or other rights to receive monies due
or to become due under any such Contract, Instrument or Chattel Paper and in
any such monies and other proceeds of such Contract, Instrument or Chattel
Paper.

 

3.             RIGHTS OF SECURED PARTIES; COLLECTION OF
ACCOUNTS.

 

(a)           Notwithstanding
anything contained in this Security Agreement to the contrary, Grantor
expressly agrees that it shall remain liable under each of its Contracts and
each of its Licenses to observe and perform all the conditions and obligations
to be observed and performed by it thereunder and that it shall perform all of
its duties and obligations thereunder, all in accordance with and pursuant to
the terms and provisions of each such Contract or License.  No Secured Party shall have any obligation or
liability under any Contract or License by reason of or arising out of this
Security Agreement or the granting to the Secured Parties of a lien

 

6

 

therein
or the receipt by any Secured Party of any payment relating to any Contract or
License pursuant hereto, nor shall any Secured Party be required or obligated
in any manner to perform or fulfill any of the obligations of Grantor under or
pursuant to any Contract or License, or to make any payment, or to make any
inquiry as to the nature or the sufficiency of any payment received by it or
the sufficiency of any performance by any party under any Contract or License,
or to present or file any claim, or to take any action to collect or enforce any
performance or the payment of any amounts which may have been assigned to it or
to which it may be entitled at any time or times.

 

(b)           The
Secured Parties authorize Grantor to collect its Accounts.  Upon the occurrence and during the
continuance of any Event of Default, at the request of the Required  Lenders, Grantor shall deliver all original
and other documents evidencing and relating to the performance of labor or
service which created such Accounts, including, without limitation, all
original orders, invoices and shipping receipts.

 

(c)           Any
Secured Party may at any time, upon the occurrence and during the continuance
of any Event of Default and the written consent of the Required Lenders, notify
Account Debtors of Grantor, parties to the Contracts of Grantor, obligors in
respect of Instruments of Grantor and obligors in respect of Chattel Paper of
Grantor that the Accounts and the right, title and interest of Grantor in and
under such Contracts, Instruments and Chattel Paper have been assigned to the Secured
Parties and that payments shall be made directly to Secured Parties.  Upon the request of the Required Lenders,
Grantor shall so notify such Account Debtors, parties to such Contracts,
obligors in respect of such Instruments and obligors in respect of such Chattel
Paper.  Upon the occurrence and during
the continuance of any Event of Default, any Secured Party may, in its name or
in the name of other Secured Parties, communicate with such Account Debtors,
parties to such Contracts, obligors in respect of such Instruments and obligors
in respect of such Chattel Paper to verify with such parties, to such Secured
Party’s satisfaction, the existence, amount and terms of any such Accounts,
Contracts, Instruments or Chattel Paper.

 

4.             REPRESENTATIONS AND WARRANTIES.  Grantor hereby represents and warrants to the
Secured Parties that:

 

(a)           Except
for the security interest granted to the Secured Parties under this Security
Agreement and Permitted Liens, and other than joint ownership in any of the
Collateral described on Schedule D attached
hereto, Grantor is the sole legal and equitable owner of each item of the
Collateral in which it purports to grant a security interest hereunder.

 

(b)           No
effective security agreement, financing statement, equivalent security or lien
instrument or continuation statement covering all or any part of the Collateral
exists, except such as may have been filed by Grantor in favor of the Secured
Parties pursuant to this Security Agreement and except for Permitted Liens.

 

(c)           Grantor’s
taxpayer identification number is, and chief executive office, principal place
of business, and the place where Grantor maintains its records concerning the
Collateral are presently located at the address set forth on the signature page
hereof. The Collateral, other than Deposit Accounts, Securities Accounts,
Commodity Accounts and motor

 

7

 

vehicles
and other mobile goods of the type contemplated in Section 9103(3)(a) of the
UCC, is presently located at such address and at such additional addresses set
forth on Schedule B attached hereto.

 

(d)           The
name and address of each depository institution at which Grantor maintains any
Deposit Account and the account number and account name of each such Deposit
Account is listed on Schedule C attached
hereto.  The name and address of each
securities intermediary or commodity intermediary at which Grantor maintains
any Securities Account or Commodity Account and the account number and account
name is listed on Schedule C attached
hereto.  Grantor agrees to amend Schedule C upon Required Lenders’ request to reflect the
opening of any additional Deposit Account, Securities Account or Commodity
Account, or closing or changing the account name or number on any existing
Deposit Account, Securities Account, or Commodity Account.

 

(e)           All
Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and
Trademark Licenses now owned or held by Grantor are listed on Schedule D attached hereto.

 

5.             COVENANTS.  Unless the Required Lenders otherwise
consents (which consent shall not be unreasonably withheld), Grantor covenants
and agrees with the Secured Parties that from and after the date of this
Security Agreement and until the Secured Obligations have been performed and paid
in full:

 

5.1          Disposition
of Collateral.  Except
as permitted under Section 4.10(e) or Section 4.11 of the Securities Purchase
Agreement, Grantor shall not sell, lease, transfer or otherwise dispose of any
of the Collateral (each, a “Transfer”),
or contract to do so, including, without limitation, the granting of Licenses
or other interests in any of Grantor’s Copyrights, Copyright Licenses, Patents,
Patent Licenses, Trademarks and Trademark Licenses other than (a) the sale of
Inventory in the ordinary course of business, (b) the disposal of worn-out or
obsolete Equipment and (c) Transfers of Collateral for fair market value as
determined by Grantor in its good faith judgment, not exceeding $100,000 in the
aggregate in any fiscal year.

 

5.2          Change
of Jurisdiction of Organization, Relocation of Business.  Grantor shall not change its jurisdiction of
organization or relocate its chief executive office, principal place of
business or its records from such address(es) provided to the Secured Parties
pursuant to Section 4(c) above without at
least thirty (30) days prior notice to the Secured Parties.

 

5.3          Limitation
on Liens on Collateral. 
Grantor shall not, directly or indirectly, create, permit or suffer to
exist, and shall take commercially reasonable actions to defend the Collateral
against and take such other action as is necessary to remove, any Lien on the
Collateral, except (a) Permitted Liens and (b) the Lien granted to the Secured
Parties under this Security Agreement.

 

5.4          Insurance.  Grantor shall maintain insurance policies
insuring the Collateral against loss or damage from such risks and in such
amounts and forms consistent with its prior practice.

 

8

 

5.5          Taxes,
Assessments, Etc. 
Grantor shall pay promptly when due all property and other taxes,
assessments and government charges or levies imposed upon, and all claims
(including claims for labor, materials and supplies) against, the Equipment,
Fixtures or Inventory, except to the extent the validity or amount thereof is
being contested in good faith and adequate reserves are being maintained in
connection therewith.

 

5.6          Defense
of Intellectual Property. 
Grantor shall use commercially reasonable efforts to (i) protect, defend
and maintain the validity and enforceability of all Copyrights, Copyrights
Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses material
to Grantor’s business and (ii) detect infringements of all Copyrights,
Copyright Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses
material to Grantor’s business and Grantor shall not permit any Copyright,
Copyright License, Patent, Patent License, Trademark or Trademark License
material to Grantor’s business to lapse, be abandoned or to otherwise terminate
unless Grantor’s board of directors in the exercise of its reasonable judgment
and in good faith determines that any of the foregoing is of inconsequential
value.

 

5.7          Further
Assurances.  At any
time and from time to time, upon the written request of the Required Lenders,
and at the sole expense of Grantor, Grantor shall promptly and duly execute and
deliver any and all such further instruments and documents and take such
further commercially reasonable action as the Required Lenders may reasonably
deem necessary to obtain the full benefits of this Security Agreement,
including, without limitation, (a) executing, delivering and causing to be
filed any financing or continuation statements (including “in lieu”
continuation statements) under the UCC with respect to the security interests
granted hereby, (b) at the Required Lenders’ reasonable request, placing
the interest of the Secured Parties as lienholder on the certificate of title
(or similar evidence of ownership) of any vehicle, watercraft or other
Equipment constituting Collateral owned by Grantor which is covered by a
certificate of title (or similar evidence of ownership), (c) executing and
delivering and using commercially reasonable efforts to cause the applicable
depository institution, securities intermediary, commodity intermediary or
issuer or nominated party under a letter of credit to execute and deliver a
collateral control agreement with respect to any Deposit Account, Securities
Account or Commodity Account or Letter-of-Credit Right in or to which Grantor
has any right or interest and (d) at the Required Lenders’ reasonable request,
using commercially reasonable efforts to obtain acknowledgments from bailees
having possession of any Collateral and waivers of liens from landlords and
mortgagees of any location where any of the Collateral may from time to time be
stored or located.  Grantor also hereby
authorizes the Secured Parties to file any such financing or continuation
statement (including “in lieu” continuation statements) without the signature
of Grantor.

 

6.             RIGHTS AND REMEDIES UPON DEFAULT.  Upon the occurrence
of any Event of Default and while such Event of Default is continuing:

 

(a)           Upon
the written consent of the Required Lenders, the Secured Parties may exercise
in addition to all other rights and remedies granted to it under this Security
Agreement and the Purchase Agreement all rights and remedies of a secured party
under the UCC.  Without limiting the
generality of the foregoing, Grantor expressly agrees that in any such event
the Secured Parties, without demand of performance or other demand,
advertisement or notice of any kind (except the notice specified below of time
and place of public or private sale)

 

9

 

to
or upon  Grantor or any other person, may
(i) reclaim, take possession, recover, store, maintain, finish, repair, prepare
for sale or lease, shop, advertise for sale or lease and sell or lease (in the
manner provided herein) the Collateral, and in connection with the liquidation of
the Collateral and collection of the accounts receivable pledged as Collateral,
use any Trademark, Copyright, or process used or owned by Grantor and (ii)
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and may forthwith sell, lease, assign, give an option or options
to purchase or sell or otherwise dispose of and deliver said Collateral (or
contract to do so), or any part thereof, in one or more parcels at public or
private sale or sales, at any exchange or broker’s board or at any Secured
Party’s offices or elsewhere at such prices as it may deem commercially
reasonable, for cash or on credit or for future delivery without assumption of
any credit risk.  Grantor further agrees,
at the Required Lender’s request, to assemble its Collateral and make it
available to the Secured Parties at places which the Secured Parties shall
reasonably select, whether at Grantor’s premises or elsewhere.  The Secured Parties shall apply the net
proceeds of any such collection, recovery, receipt, appropriation, realization
or sale as provided in Section 6(e),
below, with Grantor remaining liable for any deficiency remaining unpaid after
such application.  Grantor agrees that
the Secured Parties need not give more than twenty (20) days’ notice of the
time and place of any public sale or of the time after which a private sale may
take place and that such notice is reasonable notification of such matters.

 

(b)           As
to any Collateral constituting certificated securities or uncertificated
securities, if, at any time when Secured Parties shall determine to exercise
its right to sell the whole or any part of such Collateral hereunder, such
Collateral or the part thereof to be sold shall not, for any reason whatsoever,
be effectively registered under Securities Act of 1933, as amended (as so
amended the “Act”), the Secured Parties
may, in their discretion (subject only to applicable requirements of law), sell
such Collateral or part thereof by private sale in such manner and under such
circumstances as the Secured Parties may deem necessary or advisable, but
subject to the other requirements of this Section 6(b),
and shall not be required to effect such registration or cause the same to be
effected.  Without limiting the
generality of the foregoing, in any such event the Secured Parties may, in
their discretion, (i) in accordance with applicable securities laws,
proceed to make such private sale notwithstanding that a registration statement
for the purpose of registering such Collateral or part thereof could be or
shall have been filed under the Act; (ii) approach and negotiate with
a single possible purchaser to effect such sale; and (iii) restrict
such sale to a purchaser who will represent and agree that such purchaser
is purchasing for its own account, for investment, and not with a view to
the distribution or sale of such Collateral or part thereof.  In addition to a private sale as
provided above in this Section 6(b),
if any of such Collateral shall not be freely distributable to the public without
registration under the Act at the time of any proposed sale hereunder, then the
Secured Parties shall not be required to effect such registration or cause the
same to be effected but may, in their discretion (subject only to applicable
requirements of law), require that any sale hereunder (including a sale at
auction) be conducted subject to such restrictions as the Secured Parties may,
in their discretion, deem necessary or appropriate in order that such sale
(notwithstanding any failure so to register) may be effected in compliance with
the Bankruptcy Code and other laws affecting the enforcement of creditors’
rights and the Act and all applicable state securities laws.

 

10

 

(c)           Grantor
also agrees to pay all fees, costs and expenses of the Secured Parties,
including, without limitation, reasonable attorneys’ fees, incurred in
connection with the enforcement of any of its rights and remedies hereunder.

 

(d)           Grantor
hereby waives presentment, demand, protest or any notice (to the maximum extent
permitted by applicable law) of any kind in connection with this Security
Agreement or any Collateral.

 

(e)           The
Proceeds of any sale, disposition or other realization upon all or any part of
the Collateral shall be distributed by the Secured Parties in the following
order of priorities:

 

FIRST,
to each Secured Party in an amount sufficient to pay in full the reasonable
costs of such Secured Party in connection with such sale, disposition or other
realization, including all fees, costs, expenses, liabilities and advances
incurred or made by any Secured Party in connection therewith, including,
without limitation, reasonable attorneys’ fees;

 

SECOND,
to the Secured Parties in amounts proportional to the Pro Rata share of the
then unpaid Secured Obligations of each Secured Party; and

 

FINALLY,
upon payment in full of the Secured Obligations, to Grantor or its
representatives, in accordance with the UCC or as a court of competent
jurisdiction may direct.

 

(f)            The costs of enforcing or pursuing any
right or remedy hereunder, including without limitation any repossession, sale,
possession and management (including, without limitation, reasonable attorneys’
fees), and distribution shall be borne Pro Rata by the Secured Parties.  Each Secured Party shall reimburse the other
Secured Parties, as applicable, for its Pro Rata share of all such costs
promptly upon demand.

 

7.             ACTIONS BY THE SECURED PARTIES AND AMENDMENTS.  All actions, omissions and decisions of the
Secured Parties hereunder or any amendment of this Security Agreement (each
called herein an “Act of the Secured Parties”)
shall be determined by and require the written consent of the Required
Lenders.  Each Secured Party shall take
such actions and execute such documents as may be necessary to confirm or
accomplish any Act of the Secured Parties.

 

8.             UNEQUAL PAYMENT BY GRANTOR.  Each Secured Party agrees that if it shall
obtain or receive, through the exercise of any right granted to the Secured
Parties under this Security Agreement, under the Notes and Purchase Agreement
or by applicable law, including, but not limited to any right of set-off, any
secured claim under Section 506 of the Bankruptcy Code or any other
security or interest, any payment or payments greater than its Pro Rata share
of all Loans, as measured immediately prior to the receipt of such payment or
payments, then (a) such Secured Party shall promptly purchase at par (and
shall be deemed to have thereupon purchased) from other Secured Parties, a participation
in the Loans of such other Secured Parties, so that each Secured Party shall
have received payments in proportion to its Pro Rata share immediately prior to
such transactions and (b) such other adjustments shall be made from time to
time as shall be equitable to ensure that the Secured Parties share the
benefits of such payment on a Pro Rata basis. 
The term “Loan” as used in this paragraph shall include accrued interest
thereon.

 

11

 

9.             INDEMNITY.  Grantor agrees to defend, indemnify and hold
harmless the Secured Parties and their officers, employees, and agents against
(a) all obligations, demands, claims, and liabilities claimed or asserted by
any other party in connection with the transactions contemplated by this
Security Agreement and (b) all losses or expenses in any way suffered,
incurred, or paid by any Secured Party as a result of or in any way arising out
of, following or consequential to transactions between any Secured Party and
Grantor, whether under this Security Agreement or otherwise (including without
limitation, reasonable attorneys fees and expenses), except for losses arising
from or out of such Secured Party’s gross negligence or willful misconduct.

 

10.          REINSTATEMENT.  This Security Agreement shall remain in full
force and effect and continue to be effective should any petition be filed by
or against Grantor for liquidation or reorganization, should Grantor become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of Grantor’s
property and assets, and shall continue to be effective or be reinstated, as
the case may be, if at any time payment and performance of the Secured
Obligations, or any part thereof, is, pursuant to applicable law, rescinded or
reduced in amount, or must otherwise be restored or returned by any obligee of
the Secured Obligations, whether as a “voidable preference,” “fraudulent
conveyance,” or otherwise, all as though such payment or performance had not
been made.  In the event that any
payment, or any part thereof, is rescinded, reduced, restored or returned, the
Secured Obligations shall be reinstated and deemed reduced only by such amount paid
and not so rescinded, reduced, restored or returned.

 

11.          MISCELLANEOUS.

 

11.1        Waivers;
Modifications.  None of
the terms or provisions of this Security Agreement may be waived, altered,
modified or amended except by an instrument in writing, duly executed by
Grantor and the Required Lenders.  Each
Secured Party acknowledges that because this Security Agreement may be amended
with the consent of the Required Lenders, each Secured Party’s rights hereunder
may be amended or waived without such Secured Party’s consent.

 

11.2        Termination
of this Security Agreement. 
Subject to Section 10
hereof, this Security Agreement shall terminate upon the payment and
performance in full of the Secured Obligations. 
Upon the termination of this Agreement, Grantor is authorized to file
such termination statements or other instruments it deems reasonably necessary
to evidence the termination of the security interest granted pursuant to this
Security Agreement and the Secured Parties agree to cooperate with such
reasonable requests as Grantor may make in connection therewith.

 

11.3        Successor
and Assigns.  This
Security Agreement and all obligations of Grantor hereunder shall be binding
upon the successors and assigns of Grantor, and shall, together with the rights
and remedies of the Secured Parties hereunder, inure to the benefit of the
Secured Parties, any future holder of any of the indebtedness and their
respective successors and assigns.  No
sales of participations, other sales, assignments, transfers or other
dispositions of any agreement governing or instrument evidencing the Secured
Obligations or any portion

 

12

 

thereof
or interest therein shall in any manner affect the lien granted to the Secured
Parties hereunder.

 

11.4        Governing
Law.  In all respects,
including all matters of construction, validity and performance, this Security
Agreement and the Secured Obligations arising hereunder shall be governed by,
and construed and enforced in accordance with, the laws of the State of
California, without regard to the principles thereof regarding conflict of
laws, except to the extent that the UCC provides for the application of the law
of Grantor’s state.

 

[Signature
pages follow.]

 

13

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Security Agreement to be executed and delivered by its duly
authorized officer on the date first set forth above.

 

 

	
  ADDRESS OF GRANTOR

  	
  NEORX CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  300 Elliott Avenue West, Suite 500

  	
   

  	
  /s/  Gerald
  McMahon

  	
   

  
	
  Seattle, WA 
  98119

  	
   

  	
  Gerald McMahon

  
	
   

  	
   

  	
  Chairman and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  TAXPAYER IDENTIFICATION NUMBER
  OF

  GRANTOR

  	
  JURISDICTION OF ORGANIZATION OF

  GRANTOR 

  
	
   

  	
   

  
	
  91-1261311

  	
   

  	
  Washington

  
						

 

 

	
   

  	
  ACCEPTED
  AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED
  PARTIES

  
	
   

  	
   

  
	
   

  	
  DEERFIELD
  SPECIAL SITUATIONS FUND,

  LTD.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DARREN
  LEVINE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  DARREN LEVINE

  	
   

  
	
   

  	
  Title:

  	
  CFO

  	
   

  
							

 

 

	
   

  	
  ACCEPTED
  AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED
  PARTIES

  
	
   

  	
   

  
	
   

  	
  DEERFIELD
  SPECIAL SITUATIONS

  FUND INTERNATIONAL, LTD.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DARREN
  LEVINE

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  DARREN LEVINE

  	
   

  
	
   

  	
  Title:

  	
  CFO

  	
   

  
						

 

 

	
   

  	
  ACCEPTED AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED PARTIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MPM BIOVENTURES III, L.P.

  
	
   

  	
   

  
	
   

  	
  By:   MPM
  BioVentures III GP, L.P., its

  General Partner

  
	
   

  	
  By:   MPM
  BioVentures III LLC, its General

  Partner

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Nicholas J. Simon

  	
   

  
	
   

  	
  Name: 

  	
  Nicholas J. Simon

  
	
   

  	
  Title:

  	
  Series A Member

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The John Hancock Tower

  
	
   

  	
   

  	
  200 Clarendon Street, 54th
  Floor

  
	
   

  	
   

  	
  Boston, MA 02116

  
							

 

 

	
   

  	
  MPM BIOVENTURES III-QP,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By:   MPM
  BioVentures III GP, L.P., its

  General Partner

  
	
   

  	
  By:   MPM BioVentures III LLC, its General

  Partner

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Nicholas J. Simon

  	
   

  
	
   

  	
  Name: 

  	
  Nicholas J. Simon

  
	
   

  	
  Title:

  	
  Series A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The John Hancock Tower

  
	
   

  	
   

  	
  200 Clarendon Street, 54th
  Floor

  
	
   

  	
   

  	
  Boston, MA 02116

  
							

 

 

SIGNATURE PAGE TO
SECURITY AGREEMENT

 

 

	
   

  	
  ACCEPTED AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED PARTIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MPM BIOVENTURES III GMBH
  & CO.

  BETEILIGUNGS KG

  
	
   

  	
   

  
	
   

  	
  By:   MPM
  BioVentures III GP, L.P., in its

  capacity as the Managing Limited Partner

  
	
   

  	
  By:   MPM
  BioVentures III LLC, its General

  Partner

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Nicholas J. Simon

  	
   

  
	
   

  	
  Name: 

  	
  Nicholas J. Simon

  
	
   

  	
  Title:

  	
  Series A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The John Hancock Tower

  
	
   

  	
   

  	
  200 Clarendon Street, 54th
  Floor

  
	
   

  	
   

  	
  Boston, MA 02116

  
							

 

 

	
   

  	
  MPM BIOVENTURES III
  PARALLEL

  FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By:   MPM
  BioVentures III GP, L.P., its

  General Partner

  
	
   

  	
  By:   MPM
  BioVentures III LLC, its General

  Partner

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Nicholas J. Simon

  	
   

  
	
   

  	
  Name: 

  	
  Nicholas J. Simon

  
	
   

  	
  Title:

  	
  Series A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The John Hancock Tower

  
	
   

  	
   

  	
  200 Clarendon Street, 54th
  Floor

  
	
   

  	
   

  	
  Boston, MA 02116

  
							

 

 

SIGNATURE PAGE TO
SECURITY AGREEMENT

 

 

	
   

  	
  ACCEPTED AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED PARTIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MPM ASSET MANAGEMENT
  INVESTORS

  2005 BVIII LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Nicholas J. Simon

  	
   

  
	
   

  	
  Name: 

  	
  Nicholas J. Simon

  
	
   

  	
  Title:

  	
  Manager

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The John Hancock Tower

  
	
   

  	
   

  	
  200 Clarendon Street, 54th
  Floor

  
	
   

  	
   

  	
  Boston, MA 02116

  
							

 

 

	
   

  	
  MPM
  BIOEQUITIES MASTER FUND, LP

  
	
   

  	
   

  
	
   

  	
  By:   MPM BioEquities GP, L.P., its General

  Partner

  
	
   

  	
  By:   MPM BioEquities GP LLC, its General

  Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Kurt Von Emster

  	
   

  
	
   

  	
   

  	
  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  The John Hancock Tower

  
	
   

  	
   

  	
  200 Clarendon Street, 54th
  Floor

  
	
   

  	
   

  	
  Boston, MA 02116

  
					

 

 

SIGNATURE PAGE TO
SECURITY AGREEMENT

 

 

	
   

  	
  ACCEPTED AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED PARTIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Bay City Capital Management IV, LLC

  
	
   

  	
  General Partner of:

  
	
   

  	
  Bay City Capital Fund IV Co-Investment

  Fund, L.P.

  
	
   

  	
   

  
	
   

  	
  /s/ Carl S. Goldfisher

  	
   

  
	
   

  	
  By: Bay City Capital
  LLC, its Manager

  
	
   

  	
  By: Carl S. Goldfisher,
  M.D., a Managing

  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Bay City Capital

  
	
   

  	
   

  	
  750 Battery Street, Suite 400

  
	
   

  	
   

  	
  San Francisco, CA 94111

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Bay City Capital Management IV, LLC

  
	
   

  	
  General Partner of:

  
	
   

  	
  Bay City Capital Fund IV, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Carl S. Goldfisher

  	
   

  
	
   

  	
  By: Bay City Capital LLC, its Manager

  
	
   

  	
  By: Carl S. Goldfisher, M.D., a Managing

  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Bay City Capital

  
	
   

  	
   

  	
  750 Battery Street, Suite 400

  
	
   

  	
   

  	
  San Francisco, CA 94111

  
					

 

 

SIGNATURE PAGE TO SECURITY AGREEMENT

 

 

	
   

  	
  ACCEPTED
  AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED
  PARTIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SMITHFIELD
  FIDUCIARY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam J.
  Chill

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:  Adam J. Chill

  
	
   

  	
   

  
	
   

  	
  Title:  Authorized Signatory

  

 

 

SIGNATURE PAGE TO
SECURITY AGREEMENT

 

 

	
   

  	
  ACCEPTED
  AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED
  PARTIES

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven Bloom

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:  Steven Bloom

  
	
   

  	
  Title:  Managing Director, Sagamore Hill Capital

  
	
   

  	
  Management, on behalf
  of Sagamore Hill Hub

  
	
   

  	
  Fund, Ltd.

  
	
   

  	
   

  
	
   

  	
  One Manhattanville Road

  
	
   

  	
   

  
	
   

  	
  Purchase, NY 10577

  
				

 

 

SIGNATURE PAGE TO
SECURITY AGREEMENT

 

 

	
   

  	
  ACCEPTED
  AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED
  PARTIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SHEPHERD
  INVESTMENTS INTERNATIONAL, LTD.

  
	
   

  	
   

  
	
   

  	
  BY: STARK
  OFFSHORE MANAGEMENT, LLC ITS

  
	
   

  	
   

  
	
   

  	
  INVESTMENT
  MANAGER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael A.
  Roth

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Michael A. Roth

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  	
   

  
							

 

 

SIGNATURE PAGE TO
SECURITY AGREEMENT

 

 

NEORX CORPORATION

SECURITY AGREEMENT

 

 

	
   

  	
  ACCEPTED
  AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED
  PARTIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  T.
  ROWE PRICE ASSOCIATES, INC., AS

  REGISTERED INVESTMENT ADVISER TO THE

  PARTICIPATING T. ROWE PRICE ACCOUNTS

  IN SCHEDULE A

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kris H.
  Jenner

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Kris H. Jenner

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
							

 

 

SIGNATURE PAGE TO
SECURITY AGREEMENT

 

 

	
   

  	
  ACCEPTED
  AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED
  PARTIES

  
	
   

  	
   

  
	
   

  	
  ABINGWORTH
  BIOVENTURES IV

  EXECUTIVES L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Abell

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Abingworth
  Management Ltd.

  
	
   

  	
  Name:

  	
  James Abell

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
							

 

 

SIGNATURE PAGE TO
SECURITY AGREEMENT

 

 

	
   

  	
  ACCEPTED
  AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED
  PARTIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ James Abell

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  ABINGWORTH
  BIOVENTURES MASTER

  
	
   

  	
   

  	
  FUND LTD ACTING
  BI ITS MANAGER,

  
	
   

  	
  By:

  	
  ABINGWORTH
  MANAGEMENT LTD.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  James Abell

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
							

 

 

SIGNATURE PAGE TO
SECURITY AGREEMENT

 

 

	
   

  	
  ACCEPTED
  AND ACKNOWLEDGED BY:

  
	
   

  	
   

  
	
   

  	
  SECURED
  PARTIES

  
	
   

  	
   

  
	
   

  	
  ABINGWORTH
  BIOVENTURES IV LP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Abell

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  ABINGWORTH
  MANAGEMENT LTD.

  
	
   

  	
  Name:

  	
  James Abell

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
						

 

 

SIGNATURE PAGE TO
SECURITY AGREEMENT

 

 

SCHEDULE A

 

LIENS
EXISTING ON THE DATE OF THIS SECURITY AGREEMENT

 

 

SCHEDULE B

 

LOCATION
OF COLLATERAL

 

 

SCHEDULE C

 

DEPOSIT
ACCOUNTS, SECURITIES ACCOUNTS AND COMMODITY ACCOUNTS

 

 

SCHEDULE D

 

INTELLECTUAL
PROPERTY

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]