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Exhibit 10.2

AMENDMENT NO. 2 TO
INDUSTRIAL COLLABORATION AGREEMENT

This amendment number two (Amendment) to the industrial collaboration
agreement is made the 1st day of August, 2003 by and among INTERNATIONAL AIDS
VACCINE INITIATIVE, INC., a Delaware not-for-profit corporation with its
principal offices at 110 William Street, 27th Floor, New York, New York 10038
(hereinafter referred to as IAVI), CHILDRENS RESEARCH INSTITUTE, a
not-for-profit corporation with its principal offices at 700 Childrens Drive,
Columbus, Ohio 43205 (hereinafter referred to as Childrens), and TARGETED
GENETICS CORPORATION, a Washington corporation with its principal offices at
1100 Olive Way, Suite 100, Seattle, Washington 98101 (hereinafter referred to
as TGC).

WHEREAS, IAVI, Childrens and TGC entered into an Industrial Collaboration
Agreement dated as of February 1, 2000, which was amended March 14, 2003
(collectively the Agreement); and

WHEREAS, the parties desire to amend the Agreement to address IAVIs
desire to secure the right to commercialize program vaccines throughout the
Developing Countries [*], in accordance with the terms and conditions
hereinafter set forth.

NOW, THEREFORE, in consideration of the foregoing premises and those
funding obligations of IAVI in the Agreement, the parties hereto agree as
follows:

1.      Unless otherwise provided herein, all defined terms utilized in this
Amendment shall have the same meanings as set forth in the Agreement.

2.      Section 5B is hereby added between Section 5A and 6 in the Agreement as
follows:



| |  | LICENSE. Subject to the terms of this Agreement, including the
restrictions contained in the third sentence of this Section and the
rights of TGC and Childrens provided for herein, TGC hereby grants to
IAVI a [*] license and for so long as a [*] is maintained by or on behalf
of IAVI, to all [*] and which is utilized at the time of [*] of the
Program Vaccine that has been utilized or developed with funding [*],
including but not limited to [*]. IAVI shall convey to Childrens the
rights previously conveyed to Childrens in the foregoing by TGC under
the Agreement. IAVI shall have no right to operate pursuant to this
Section 5B unless [*] or unless IAVI terminates the Agreement pursuant to
Section 6(e)(ii) or Section 6(f)(i). IAVI agrees that TGC and Childrens
hereby retains (i) the right to require that IAVI grant sublicenses to
the rights licensed in [*], such terms to be negotiated between IAVI and
such sublicensee; and (ii) all other rights not granted under this
Agreement.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | For purposes of clarity, IAVIs right to: (a) sublicense under Sections
5A and 5B is limited to [*]; and (b) sell Program Vaccines solely to the
Developing Countries does not preclude IAVI from [*].                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

[*] Confidential material redacted and separately filed with the Commission.





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3.      Section 10(b)(ii) of the Agreement is hereby amended and replaced with
the following:



| |  | (b)(ii) Childrens shall retain all of its rights and properties (whether
as title holder, licensee or sublicensee) in and to the Background
Technology of Childrens (inclusive of its title in the Licensed
Childrens Rights, subject to the applicable licenses granted thereon).
Childrens hereby grants to TGC and its Affiliates an [*] right and
license, [*] Program Vaccines under the Background Technology of
Childrens [*], whether [*], and specifically including without
limitation within the scope of and in support of all grants (contingent
or otherwise) by TGC to IAVI hereunder and of any activities by or for
TGC or its licensees or contractors as described in clauses (i) and (ii)
of Section 11(e) or in Section 11(i). To the extent any such Background
Technology of Childrens is part of the Licensed Childrens Rights, such
license under this clause shall be [*] as provided in those existing
license and sublicense agreements. Otherwise, such license to TGC
hereunder shall be [*]. To the extent the sale of any Program Vaccine
would for any reason generate a royalty obligation owed by TGC to
Childrens licensee under the agreements relating to the Licensed
Childrens Rights, such sale shall not, notwithstanding any other
provision hereof, [*]. Further, IAVI agrees to pay any [*]. TGC and
Childrens shall disclose to IAVI in advance any agreements which may
result in a need for IAVI to [*], at which time IAVI shall have the
option to accept such obligation or decline such right. Where Childrens
believes that [*] for purposes of such license, it shall promptly so
inform TGC and IAVI and the parties will consult as to the proper course
of action under the circumstances, it being agreed that Childrens will
not [*] where IAVI and/or TGC bears all [*] of such efforts and such
removal. Notwithstanding anything in the foregoing to the contrary,
nothing herein shall be construed as a [*].
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4.      Section 11(g) of the Agreement is hereby amended and replaced with the
following:



| |  | (g) Neither Childrens nor TGC grants, or shall grant, to IAVI any
implied licenses or other rights to use any other rights, know-how, or
technologies (whether or not available to Childrens or TGC) other than
the Program Inventions and the Background Technology as stated in this
Agreement, nor in any way for sale or distribution outside of the
Developing Countries or to the extent not conceived or reduced to
practice solely during and within the scope of IAVIs funding under the
Research and Development Program.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.      The definition of Commercially Reasonable Program in Section
11(d)(iii)(C) is hereby amended by deleting the preamble of the definition as
used in this clause (iii).

6.      Section 11(i) of the Agreement is hereby amended and replaced with the
following:



| |  | If IAVI operates pursuant to the license granted in Section 5B or
otherwise develops in whole or in material part a Program Vaccine under
the Research and Development
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

[*] Confidential material redacted and separately filed with the Commission.





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| |  | Program, then IAVI shall pay a [*] royalty on sales [*] in the Developing
Countries to TGC to be negotiated by the parties prior to the first
commercial sale by IAVI or any of its sublicensees of a Program Vaccine
([*]) and continuing until the last to expire of the respective patent
rights licensed hereunder claiming a Program Vaccine.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | TGC agrees that is shall pay to IAVI an aggregate royalty of [*] of the
Net Sales by TGC of any Program Vaccine to other than the Public Sector
which falls under an issued patent on a Program Invention in the country
in which the Program Vaccine is manufactured or sold. TGC agrees that it
shall pay to IAVI an aggregate royalty of [*] of the Net Sales by TGC of
any Program Vaccine to [*], when such Program Vaccine does not fall under
the preceding sentence, but was nonetheless developed in whole or in
material part under the Research and Development Program and is sold
prior to the tenth anniversary of the first approval for commercial sale
of such Program Vaccine pursuant to a Marketing Approval Application in
that jurisdiction.                                                                                                                 
|
| |  | Pursuant to Section 5B(i), TGC shall have no obligation to pay IAVI any
remuneration, royalty or otherwise, on [*] of any Program Vaccine [*]
since such sublicensees will not be licensed by TGC for [*]. TGC agrees
that is shall pay to IAVI an aggregate royalty of [*] of the Net Sales by
TGCs sublicensees of a Program Vaccine to [*] which falls under an
issued patent on a Program Invention in the country in which the Program
Vaccine is manufactured or sold. TGC agrees that it shall pay to IAVI an
aggregate royalty of [*] of the Net Sales by [*] of any Program Vaccine
to [*], when such Program Vaccine does not fall under the preceding
sentence, but was nonetheless [*] and is sold prior to the tenth
anniversary of the first approval for commercial sale of such Program
Vaccine pursuant to a Marketing Approval Application in that
jurisdiction.

7.      Section 12 of the Agreement is hereby amended to include a new Section
(c) as follows:



| |  | (c) IAVI agrees to indemnify and hold TGC, Childrens and their
respective affiliates, officers, directors, employees, agents, licensees
and sublicensees (collectively, the Indemnitees under this subsection)
harmless from and against any and all losses, claims, demands, suits,
damages, liabilities and related costs and expenses (including reasonable
attorneys fees) incurred by or asserted against any Indemnitee which may
arise [*] in connection with this Agreement unless such losses, claims,
demands, suits, damages, liabilities and related costs and expenses
(including reasonable attorneys fees) shall be due to [*] of any
Indemnitee.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8.      Except as specifically modified or amended hereby, the Agreement shall
remain in full force and effect. No oral promise, covenant or representation of
any character or nature has been made to induce any party to enter into this
Amendment. No provision of this Amendment may be modified or amended except
expressly in a writing signed by all parties nor shall any term be waived
except expressly in a writing signed by the party charged therewith. This
Amendment shall be governed in accordance with the laws of the State of New
York, without regard to principles of conflicts of laws.

[*] Confidential material redacted and separately filed with the Commission.





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

IN WITNESS WHEREOF, the parties hereto have signed this Amendment on the
day and year first above written.

| |  |                                             |  |                                                                                            
| |  | ------------------------------------------- |  | -------------------------------------------------------------------------------------------
| |  | INTERNATIONAL AIDS VACCINE INITIATIVE, INC.
| |  |                                             |  |                                                                                            
| |  | By:                                         |  | /s/ Seth Berkley

Seth Berkley, M.D.
President and CEO                                     
| |  |                                             |  |                                                                                            
| |  | TARGETED GENETICS CORPORATION              
| |  |                                             |  |                                                                                            
| |  | By:                                         |  | /s/ H. Stewart Parker

Name: H. Stewart Parker
Title: President and Chief Executive Officer
| |  |                                             |  |                                                                                            
| |  | CHILDRENS RESEARCH INSTITUTE              
| |  |                                             |  |                                                                                            
| |  | By:                                         |  | /s/ Daniel Mann
Name: Daniel Mann
Title: Vice President                                    

Acknowledged with respect to
the Research and Development Program

By: [*]
[*]

[*] Confidential material redacted and separately filed with the Commission.