8. SUBSEQUENT EVENTS

In August 2016, we and Ionis settled the lawsuit regarding allegations by Ionis that OncoGenex Technologies was in breach of the licensing agreement. Pursuant to the settlement, we are required to pay Ionis a $1.4 million upfront payment. We will also be required to pay Ionis, success based payments in an amount that does not exceed $5.0 million based on, (i) an additional 5% royalty on net sales of custirsen and (ii) 50% of any money we receive related to the sale, license or any other commercial transaction involving custirsen, subject to certain limitations. The payments under (ii) above are in addition to, and not in lieu of,  non-royalty revenue due under our license agreement with Ionis, except that the non-royalty revenue paid to Ionis under the license agreement, combined with the payments under (ii) above, shall not exceed 50% of the consideration received by us at any given time. The success based payments above are subject to certain acceleration provisions in the event of a change of control.