Document:

Exhibit 10.48

 

ADDITIONAL FUNDING
AGREEMENT

 

This Agreement
(this “Agreement”) is dated as of May 6, 2003, by and among AVI
BioPharma, Inc., an Oregon corporation (the “Company”) and Riverview
Group, LLC, Cranshire Capital L.P., Smithfield Fiduciary LLC, Omicron Master
Trust, The Tail Wind Fund Limited, Solomon Strategic Holdings, Inc., MRT, L.P.
and Rodman & Renshaw, Inc. (collectively referred to as the “Purchasers”).

 

WHEREAS, the
Company and the Purchasers are parties to that certain Securities Purchase
Agreement dated as of May 5, 2003 (the “Purchase Agreement”);

 

WHEREAS,
defined terms not otherwise defined herein shall have the meanings ascribed to
such terms in the Purchase Agreement; and

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and the
Purchase Agreement, the Company desires to issue and sell to the Purchasers,
and the Purchasers, severally and not jointly, desire to purchase from the
Company, up to, but not to exceed, in the aggregate, an additional 1,500,000
shares of Common Stock and Warrants to purchase up to, in the aggregate,
750,000 shares of Common Stock, as more fully described in this Agreement.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this
Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and the Purchasers
hereto agree as follows:

 

1.             Investment.  Within two (2) Trading Days from the date
hereof, each Purchaser shall deliver to the Company via wire transfer their
respective amounts of the amount set forth on the signature pages hereto and
labeled as the subscription amount, and the Company shall deliver to such
Purchaser shares of Common Stock in accordance with Section 2.3(a)(i) of the
Purchase Agreement and Warrants in accordance with Section 2.3(a)(ii) of the
Purchase Agreement.

 

2.             Documents.  The rights and obligations of the Purchasers
and of the Company with respect to the shares of Common Stock and the Warrants
issued hereunder shall be identical in all respects to the rights and
obligations of the Purchasers and of the Company with respect to the shares of
Common Stock and the Warrants issued pursuant to the Purchase Agreement.  Any rights of a Purchaser or covenants of
the Company which are dependant on a Purchaser holding securities of the
Company or which are determined in magnitude by such Purchaser’s purchase of
securities pursuant to the Purchase Agreement shall be deemed to include any
securities purchased hereunder. The Purchase Agreement is hereby amended to the extent that the term
“Shares” includes the shares of Common Stock issued hereunder, “Warrants”
includes the warrants issued hereunder and “Underlying Shares” includes the
shares of common stock issued hereunder and the shares of Common Stock issuable
upon exercise of the warrants issued hereunder.  Additionally, the Registration Rights Agreement is hereby amended
to the extent that the term “Registrable Securities” includes the shares of
Common Stock issuable hereunder and the shares of Common Stock issuable upon
exercise of the warrants issued hereunder and “Warrants” includes the warrants
issued hereunder.

 

3.             Representations and Warranties
of the Company.  Except as set forth
under the corresponding section of the disclosure schedules attached to the
Purchase Agreement, if any, all representations and warranties of the Company
contained in Section 3.1 of the Purchase Agreement were true and correct as of
May 5, 2003, and remain true and correct as of the date hereof, as though made
at and as of the
date hereof.  The Company has performed
all of the covenants of the Company contained in the Purchase Agreement to be
performed by the Company through the date hereof.  The Company shall, by the close of business, on the business day
following the date of this Agreement, issue a press release

 

1

 

reasonably acceptable to the Purchasers or
file a Form 8-K disclosing all material terms of the transactions contemplated
hereby otherwise in compliance with Section 4.8 of the Purchase Agreement.

 

4.             Representations and Warranties
of the Purchasers.   Each Purchaser
hereby represents and warrants to the Company, severally and not jointly, that
its representations and warranties listed in Section 3.2 of the Purchase
Agreement are true and correct with respect to such Purchaser as of the date
hereof.

 

5.             Incorporation by Reference.  Except as set forth in this Agreement, each
of the Purchase Agreement and the Registration Rights Agreement (with all exhibits
attached thereto) are hereby incorporated by reference and made a part
hereof.  Execution of the signature page
to this Agreement shall constitute the execution of each of the Purchase
Agreement and the Registration Rights Agreement, and each Purchaser shall be
bound to their terms and conditions as set forth in this Agreement. 
Except as specifically amended by the terms of this Agreement, the
Purchase Agreement and all exhibits attached thereto shall remain unmodified
and in full force and effect, and shall not be in any way changed, modified or
superseded by the terms set forth herein.

 

6.             Consent to Agreement.  To the extent required pursuant to Section 4.7 of the Purchase
Agreement, each Purchaser for itself, consents to the issuance of the Common
Stock and Warrants pursuant to this Agreement.

 

7.             Successors and Assigns.  Except as otherwise expressly provided
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors and administrators of the
parties hereto.

 

8.             Amendment and Waiver.  Neither this Agreement nor any term hereof
may be amended, waived, discharged or terminated, except by a written
instrument signed by all the parties hereto.

 

9.             Counterparts. 
This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument and shall
become effective when counterparts have been signed by each party and delivered
to the other parties hereto, it being understood that all parties need not sign
the same counterpart.  Execution of this
amendment may be made by delivery by facsimile.

 

10.           Notices. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be delivered as
set forth in the Purchase Agreement.

 

**************************

 

2

 

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

 

	
   

  	
  AVI BIOPHARMA, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Alan P. Timmins

  	
   

  
	
   

  	
  Name:

  	
  Alan P. Timmins

  
	
   

  	
  Title:

  	
  President & Chief Operating Officer

  

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

3

 

[ADDITIONAL FUNDING SIGNATURE PAGE]

 

	
  SMITHFIELD FIDUCIARY LLC

  	
   

  
	
   

  
	
  By:

  	
   

  	
  /s/ Adam J. Chill

  	
   

  
	
  Name:

  	
  Adam J. Chill

  
	
  Title:

  	
  Authorized Signatory

  
					

 

Shares of Common Stock:  200,000

Warrant Shares:  100,000

Aggregate Subscription Amount: 
$1,000,000

 

4

 

OMICRON MASTER TRUST

By:  Omicron Capital L.P., as subadvisor

By:  Omicron Capital Inc., its general partner

 

	
  By:  

  	
   

  	
  /s/ Olivier Morali

  	
   

  
	
  Name:

  	
  Olivier
  Morali

  
	
   Title:

  	
  President

  

 

Shares of Common Stock:  150,000

Warrant Shares:  75,000

Aggregate Subscription Amount: 
$750,000

 

5

 

	
  RIVERVIEW GROUP, LLC

  
	
   

  
	
   

  
	
  By:

  	
   

  	
  /s/ Terry
  Feeney

  	
   

  
	
  Name:

  	
  Terry Feeney

  
	
  Title:

  	
  Chief
  Operating Officer

  

 

Shares of Common Stock:  600,000

Warrant Shares:  300,000

Aggregate Subscription Amount: 
$3,000,000

 

6

 

	
  THE TAIL WIND FUND LIMITED

  
	
  By: Tail
  Wind Advisory & Management Ltd.

  
	
   

  
	
  By:

  	
   

  	
  /s/ David
  Crook

  	
   

  
	
  Name:

  	
  David Crook

  
	
  Title:

  	
  Chief
  Executive Officer

  

 

Shares of Common Stock:  50,000

Warrant Shares:  25,000

Aggregate Subscription Amount: 
$250,000

 

7

 

	
  CRANSHIRE CAPITAL L.P.

  
	
   

  
	
  By:

  	
   

  	
  /s/ Mitchell
  P. Kopin

  	
   

  
	
  Name:

  	
  Mitchell P.
  Kopin

  
	
  Title:

  	
  President –
  Downsview Capital

  
	
   

  	
  The General
  Partner

  

 

Shares of Common Stock:  400,000

Warrant Shares:  200,000

Aggregate Subscription Amount: 
$2,000,000

 

8

 

	
  MRT, LP

  
	
   

  
	
  By:

  	
   

  	
  /s/ Ian
  Estepan

  	
   

  
	
  Name:

  	
  Ian Estepan

  
	
  Title:

  	
  Research
  Analyst

  

 

Shares of Common Stock: 100,000

Warrant Shares: 50,000

Aggregate Purchase Price: 
$500,000

 

9

 

	
  RODMAN & RENSHAW, INC.

  
	
   

  
	
  By:

  	
   

  	
  /s/ John J. Borer, III

  	
   

  
	
  Name:

  	
  John J.
  Borer, III

  
	
  Title:

  	
  Senior
  Managing Director

  

 

Shares of Common Stock: 0

Warrant Shares: 0

Aggregate Subscription Amount: 
$0

 

10

 

	
  SOLOMON STRATEGIC HOLDINGS, INC.

  
	
   

  
	
  By:

  	
   

  	
  /s/ Andrew
  P. MacKellar

  	
   

  
	
  Name:

  	
  Andrew P.
  MacKellar

  
	
  Title:

  	
  Director

  

 

Shares
of Common Stock: 0

Warrant
Shares: 0

Aggregate
Subscription Amount: $0

 

11CONSULTING AGREEMENT
                              --------------------

This Consulting Agreement (the "Agreement") is made and entered into this__ day
of May, 2003

BETWEEN:

     Charles van Musscher, a businessman residing in Gruenwald, Germany
     --------------------

                  (hereinafter referred to as the "Consultant")

                                OF THE FIRST PART

AND

     T & G2, a company incorporated pursuant to the laws of the State of Nevada.
     ------

                    (hereinafter referred to as the "Client")

                               OF THE SECOND PART

WHEREAS the Consultant and Client are desirous that the Consultant provide
certain services to the Client as set out herein.

NOW THEREFORE, in consideration of the mutual promises and agreements set forth
herein, and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows:

                             I. CONSULTING SERVICES
                             ----------------------

The Client hereby retains the Consultant as an independent consultant to the
Client and the Consultant hereby accepts and agrees to such retention. The
Consultant shall:

(a)  Develop a marketing plan for the expansion of the Clients business to
     Europe;
(b)  Introduce the business of the Client to Consultants contacts throughout
     Europe;
(c)  Introduce Client to Consultant's German contacts for the purpose concluding
     a joint-venture relationship, licensee or distributor for carrying on
     business in Germany and assist in such negotiations;
(d)  Identify companies and/or product lines that Client might acquire that
     would be complimentary to the Client's business and assist in such
     acquisitions.

                     II. TIME, MANNER AND PLACE PERFORMANCE
                     --------------------------------------

The Consultant provides services similar to those provided for herein to other
clients that may include publicly traded companies. The Client agrees that the
Consultant does not and shall not be required to devote its full time and
efforts to the Client. The Consultant shall devote such time to the Client as is
reasonable and necessary to provide the Consulting Services to the Client.
Consultant shall be available for advice and counsel to the officers and
directors of the Client at such reasonable and convenient times and places as
may mutually be agreed upon.

                           III. TERM OF THE AGREEMENT
                           --------------------------

The Term of this Agreement shall be six (6) months, commencing on the date of
this Agreement set forth above ending twelve months of such date (the "Term"),
subject however, to prior termination as provided in Section IX of this
Agreement.

<PAGE>

                                IV. COMPENSATION
                                ----------------

In consideration of the Consulting Services to be provided to the Client by the
Consultant, Client hereby agrees to compensate Consultant as follows:

$50,000 USD payable as follows:

     a.   Client shall issue $12,000 USD or equivalent registered common shares
          of the Client, issued under S-8, upon the signing of this Agreement.
          The number of shares is to be determined by dividing $12,000 USD by
          the closing bid price for the Company's common as of April 30th 2003.
          (Example: stock value is $.06. Then, $12,000 USD divided by $.06 =
          200,000 shares)

     b.   Client shall issue an additional $38,000 USD or equivalent registered
          common shares under S-8 of the Client upon the signing of this
          Agreement. If stock than the number of shares of free trading stock
          shall have a guaranteed value of $38,000 USD. The number of shares is
          determined by dividing $38,000 USD by the average of the closing bid
          prices for the Company's common stock for the five (5) trading days
          immediately preceding the date of issuance of on or before May 9th,
          2003. (Example: if stock value is $.06. Then, $38,000 USD divided by
          $.06 = 633,333 shares)

          (Please see delivery instructions on Appendix (B) attached hereto)

                          V. DISCLOSURE OF INFORMATION
                          ----------------------------

The Consultant recognizes and acknowledges that it has and will have access to
certain confidential information of the Client's and its affiliates that are
valuable, special and unique assets and property of the Client and such
affiliates ("Confidential Information"). The Consultant will not, during and
after the term of this Agreement, disclose, without the prior written consent or
authorization of the Client, any Confidential Information to any person, except
authorized representatives of the Consultant or its affiliates, for any reason
or purpose whatsoever. In this regard, the Client agrees that such authorization
or consent to disclose may be conditioned upon the disclosure being made
pursuant to a secrecy agreement, protective order, provision of statute, rule,
regulation or procedure under which the confidentiality of the information is
maintained in the hands of the person to whom the information is to be disclosed
or in compliance with the terms of a judicial order or administrative process.
Any information which has been disclosed to the public by the Client or upon the
authorization of the client shall not be considered Confidential Information.

                           VI. NATURE OF RELATIONSHIP
                           --------------------------

Nothing in this Agreement shall render any party a general partner of the other.
Except as set forth in this Agreement neither party is nor shall be a general
agent for the other and neither party is given authority to act on behalf of the
other. The Consultant is retained by the Client in an independent capacity and
except as set forth in this Agreement; Consultant shall not enter into any
agreement or incur any obligation on behalf of the Client.

                            VII. CONFLICT OF INTEREST
                            -------------------------

This Agreement is non-exclusive. The Consultant shall be free to perform
services for other companies and persons. Consultant will use its best efforts
to avoid conflicts of interest. Client agrees that it shall not be a conflict of
interest that Consultant devotes time and resources to companies and persons
other than Client. In the event that Consultant believes a conflict of interest
arises which may affect the performance of the Consulting Services for Client,
Consultant shall promptly notify the Client of such conflict. Upon receiving
such notice, the Client may terminate this Agreement pursuant to Section XI.
Failure to terminate this Agreement within 30 days of notification of any

                                                                               2
<PAGE>

conflict of interest shall constitute the Client's ongoing consent to the
Consultant's continued activities, which would be in conflict with client.

            VIII. INDEMNIFICATION FOR SECURITIES LAWS VIOLATIONS AND
            --------------------------------------------------------
                             LIMITATION OF LIABILITY
                             -----------------------

a.   The Client agrees to indemnify and hold harmless the Consultant against any
     losses, claims, damages, liabilities and/or expenses (including any legal
     or other expenses reasonably incurred in investigating or defending any
     action or claim in respect thereof) to which the Consultant may become
     subject under the Securities Act of 1933 as amended or the Securities
     Exchange Act of 1934 as amended or German legislation and regulations,
     because of actions of the Client or its agent(s), Client's material
     publicly available to the Consultant, or materials provided to Consultant
     by Client for use by Consultant in its performance under this Agreement.

b.   The Consultant agrees to indemnify and hold the Client and each officer,
     director and controlling person of the Client against any loses, claims,
     damages, liabilities and/or expenses (including any legal or other expenses
     reasonability incurred in investigating or defending any action or claim in
     respect thereof) to which the Client of such officer, director or
     controlling person may become subject under the Securities Act of 1933 as
     amended or the Securities Exchange Act of 1934 as amended or German
     legislation and regulations, solely because of actions of the Consultant or
     his agent (s).

                                 IX. TERMINATION
                                 ---------------

Notwithstanding Section III of this Agreement, this Agreement may be terminated:

     a.   By the Client for any reason upon 30 days prior written notice to
          Consultant.

     b.   By Consultant upon 30 days prior written notice to the Client in the
          event;

          (i) Client requests Consultant to perform acts or services in
          violation of any law, rule, regulation, policy or order of any federal
          or state regulatory agency,

          (ii) Client distributes to the public information containing material
          misrepresentations or omissions, or

          (iii) Client is engaging in conduct in violation of any law, including
          rules, regulations, orders and policies of any federal or state
          regulatory agency.

                                   X. NOTICES
                                   ----------

Any notices required or permitted to be given under this Agreement shall be
sufficient if in writing and delivered via FAX, to the FAX number set forth
below, or if sent by registered or certified mail, return receipt requested, to
the address set forth below.

          a.   If to Consultant:
               Robert-Koch-Strasse 16
               82031 Gruenwald, Germany
               Fax: ++49 89 64 91 58 05

          b.   If to Client:
               65 La Grande Ave.
               Berkeley Heights, NJ 07922
               Fax: (888) 329-7615

                                                                               3
<PAGE>

                               XI. APPLICABLE LAW
                               ------------------

This Agreement shall be interpreted and construed in accordance with and
pursuant to the laws of the State of Florida.

                                XII. ARBITRATION
                                ----------------

Any dispute, difference or question which may arise at any time hereinafter
between the Shareholders touching on the true construction of this Agreement and
the respective rights and obligations of each party hereto to the other shall be
referred to and settled by binding arbitration under the American Arbitration
Association. No arbitration shall be commenced until the aggrieved party shall
send to the other party a written notice describing the problem and stating a
proposed solution ("Settlement Notice"). For Thirty (30) days after the sending
of the Settlement Notice, the parties shall try to settle the dispute in good
faith. During this Thirty (30) day settlement period, each party shall send to
the other an additional written notice with further proposal for resolving the
dispute and responding in detail to the last proposal of the other party. The
contents of the Settlement Notice and of all discussions and writings during the
Thirty (30) day settlement period shall be without prejudice and shall be
privileged as settlement discussion and may not be used in any legal proceedings
or arbitration. The place of arbitration shall be in the State of Florida.
Judgement on the Arbitral award may be entered in any court in the State of
Florida or in any court having jurisdiction. The parties hereby waive all
defences as to personal jurisdiction, venue and sovereign immunity from
attachment, exception and jurisdiction in any proceeding to confirm or enforce
the award. The laws of the State of Florida shall govern all issues during the
arbitration. The decision of the Arbitrator shall be final and finding on the
parties.

                               XIII. SEVERABILITY
                               ------------------

The provisions contained herein are severable and in the event any of them shall
be held invalid, the Agreement shall be interpreted as if such invalid
provisions were not contained herein.

                              XIV. ENTIRE AGREEMENT
                              ---------------------

This entire Agreement constitutes and embodies the entire understanding and
agreement of the parties and supersedes and replaces all prior understandings,
agreements and negotiations of the parties. This Agreement may not be modified,
except in writing and signed by all parties hereto.

                                XV. COUNTERPARTS
                                ----------------

This Agreement may be executed in counterparts, each of which shall constitute
and be deemed an original, but both of which taken together shall constitute to
one and the same document.

IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this
Agreement the day and year first above written.

          CONSULTANT

          -------------------------------------
          CHARLES VAN MUSSCHER, CONSULTANT

          CLIENT

          T & G2 Corporation, Inc.

          By:
             ----------------------------------
                  James M. Farinella
          Its:     President
                                                                               4
<PAGE>

                                  Appendix (B)
                                  ------------

     All Cash shall be by wire transfer to Consultant at:

               Coconut Grove Bank
               Miami, Florida
               ABA # 066004600
               For further credit to: Charles van Musscher
               Account # 01794325 06

     All shares shall be sent either physical delivery or DTC to:

               M.H Meyerson/Crown Financial
               525 Washington Blvd.
               34th Floor
               Jersey City, NJ 07310
               DTC # 0632 - Fiserv Securities
               FFC: Charles van Musscher
               ACCT # 55832495
               Phone: 212-898-6200
               Attn: Eric Weissblum

                                                                               5
<PAGE>

                                  ATTACHMENT A
                                  ------------

     It is hereby acknowledged that the compensation for the services identified
in the  foregoing  Agreement  will be in the form of T&G2,  Inc.  Class A Common
Stock registered on From S-8.  Accordingly,  the Consultant  represents that the
services to be performed  under the Agreement are eligible  services as required
by Form S-8, and that the stock,  when  issued,  must be issued in the name of a
"natural person" as defined by the applicable securities laws.

     The Consultant  represents that none of the compensation received hereunder
                                     ----
is for  promoting  or  maintaining  a market  in the  stock of  T&G2,  Inc.  The
Consultant,  under the terms of this  Agreement  is not being  retained  to find
                                                    ---
investors;  provide investor  relations or shareholder  communication  services;
promote T&G2, Inc.'s stock through newsletters;  or as part of a capital raising
scheme.

     Additionally,  the Consultant  represents that, with regard to the stock to
be registered as compensation for the services rendered  hereunder,  (i) neither
T&G2,  Inc.,  or a promoter  of its stock,  will direct the resale in the public
market of the stock  received  under this  Agreement as  compensation;  and (ii)
T&G2,  Inc.  will not receive  any portion of the  proceeds of the resale of the
stock issued as compensation hereunder.

     The Consultant  acknowledges that T&G2, Inc., and its counsel, will rely on
these  representations  when filing the Form S-8 to register the shares that are
received as compensation.

                                                  CONSULTANT

                                                  ------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}]]