Document:

Exhibit 10.60

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED
AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”), made on this 26 day of
October, 2007, by and between AVI BioPharma, Inc.
an Oregon corporation, with its principal office at 1 SW Columbia Street, Suite 1105,
Portland, OR  97258 (“Company”), and Alan
P. Timmins (“Employee”).

 

RECITALS:

 

A.            Employee
has been a valued employee of the Company since September 1992 and
currently serves in the capacities of President and Chief Operating Officer.

 

B.            The
terms of Employee’s employment with the Company have been as set forth in an
Employment Contract entered into by and between Employee and Company in September 1992
and modified  in November 1996 (“Prior
Agreements”).

 

C.            The
Company desires to continue Employee’s employment with the Company as President
and Chief Operating Officer under the terms stated in this Agreement.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration of the mutual benefits contained
herein, the sufficiency of which the parties acknowledge, the parties hereby
agree as follows:

 

1.             Employment Term.  The term of employment (“Term”) shall
commence on the date written above and shall continue until terminated in
accordance with Section 12.

 

2.             Duties.  Employee shall be responsible to perform such
duties as assigned to him from time to time by the Board of Directors of the
Company (“Board”). Employee shall be employed by the Company and shall devote
his best efforts to the service of the Company throughout the Term. Employee
shall devote at least forty (40) hours per week to the affairs of the Company.
Employee and Company acknowledge and agree that (i) Employee may hold
certain offices within certain entities as set forth on Exhibit A to this
Agreement,  (ii) Employee’s devotion
of reasonable amounts of time in such capacities, so long as it does not
interfere with his performance of services hereunder, shall not conflict with
the terms of this Agreement, and (iii) Exhibit A may be amended from
time to time by agreement of the parties.

 

3.             Compensation.  During the Term the Company shall compensate
Employee at an initial annual salary of $310,000, payable in accordance with
Company’s payroll practices in effect from time to time, and less amounts
required to be withheld under 

 

 

applicable law and requested to be withheld by Employee. Employee’s
annual salary shall be subject to review on an annual basis. The Company may
but shall not be required to pay bonus compensation to Employee. Except as
otherwise provided in this Agreement, the base salary shall be prorated for any
period of service less than a full month.

 

4.             Expenses.  The Company will reimburse Employee for all
expenses reasonably incurred by him in discharging his duties for the Company,
conditioned upon Employee’s submission of written documentation in support of
claimed reimbursement of such expenses, and consistent with the Company’s
expense reimbursement policies in effect from time to time.

 

5.             Benefits.  Subject to eligibility requirements, Employee
shall be entitled to participate in such benefits plans and programs as adopted
by the Company from time to time.

 

6.             Confidentiality.

 

(a)           In the course of his employment with the
Company, it is anticipated that Employee may acquire knowledge (both orally and
in writing) regarding confidential affairs of the Company and confidential or
proprietary information including: (i) matters of a technical nature, such
as know-how, inventions, processes, products, designs, chemicals, compounds,
materials, drawings, concepts, formulas, trade secrets, secret processes or
machines, inventions or research projects; (ii)matters of a business nature,
such as information about costs, profits and pricing policies; (iii) 
markets, sales, suppliers, customers, plans for future development, plans for
future products, marketing plans or strategies; and (iv) other information
of a similar nature which is not generally disclosed by the Company to the
public, referred to collectively hereafter as “Confidential Information.” “Confidential
Information” shall not include information generally available to the public.
Employee agrees that during the term of this Agreement and thereafter, he (1) will
keep secret and retain in the strictest confidence all Confidential
Information, (2) not disclose Confidential Information to anyone except
employees of the Company authorized to receive it and third parties to whom
such disclosure is specifically authorized, and (3) not use any
Confidential Information for any purpose other than performance of services
under this Agreement without prior written permission from the Company.

 

(b)           If Employee is served
with any subpoena or other compulsory judicial or administrative process
calling for production or disclosure of Confidential Information or if Employee
is otherwise required by law or regulation to disclose Confidential
Information, Employee will immediately, and prior to production or disclosure,
notify the Company and provide it with such information as may be necessary in
order that the Company may take such action as it deems necessary to protect
its interest.

 

(c)           The provisions of this Section 6 shall
survive termination of this Agreement.

 

 

7.             Non-competition.

 

(a)           Employee agrees that for a two-year period
from the effective date of the termination of Employee’s employment with the
Company, Employee shall not directly or indirectly engage in or have any
ownership interest in, or participate in the financing, operation, management
or control of, any person, firm, corporation or business that engages in any
activity customarily associated with the Company’s ordinary course of business
at the time of such termination anywhere in the world; provided, however,  that this provision
shall not prohibit Employee from owning up to five percent (5%) of any class of
outstanding bonds, preferred stock or shares of common stock of any such
entity.

 

(b)           For a period of two (2) years following
termination of employment with the Company for any reason, except with the
express written consent of the Company, Employee agrees to refrain from
directly or indirectly recruiting, hiring or assisting anyone else to hire, or
otherwise counseling to discontinue employment with the Company, any person
then employed by the Company or its subsidiaries or affiliates.

 

(c)           In the event that the provisions of this Section 7
should ever be deemed to exceed the duration or geographic limitations or scope
permitted by applicable law, then such provisions shall be reformed to the
maximum time or geographic limitations or scope, as the case may be, permitted
by applicable laws.

 

(d)           The provisions of this Section 7 shall
survive termination of this Agreement and the term of employment.

 

8.             Covered Work.

 

(a)           All rights, title and interest to any
Covered Work that Employee makes or conceives (whether alone or with others)
while employed by the Company, belong to the Company. This Agreement operates
as an actual assignment of all rights in Covered Work to the Company. “Covered
Work” means products and Inventions that relate to the actual or anticipated
business of the Company or any of its subsidiaries or affiliates, or that
result from or are suggested by a task assigned to Employee or work performed
by Employee on behalf of the Company or any of its subsidiaries or affiliates,
or that were developed in whole or in part on the Company time or using the
Company’s equipment, supplies or facilities. “Inventions” mean ideas,
improvements, designs, computer software, technologies, techniques, processes,
products, chemicals, compounds, materials, concepts, drawings, authored works
or discoveries, whether or not patentable or copyrightable, as well as other
newly discovered or newly applied information or concepts. Attached hereto as Exhibit B
is a description of any product or Invention in which Employee had or has any
right, title or interest, which is not included within the definition of “Covered
Work.”

 

 

(b)           Employee shall promptly
reveal all information relating to Covered Work and Confidential Information to
an appropriate officer of the Company and shall cooperate with the Company, and
execute such documents as may be necessary, in the event that the Company
desires to seek copyright, patent or trademark protection thereafter relating
to same.

 

(c)           In the event that the
Company requests that Employee assist in efforts to defend any legal claims to
patents or other right, the Company agrees to reimburse Employee for an
reasonable expenses Employee may incur in connection with such assistance. This
obligation to reimburse shall survive termination of this Agreement and the
term of employment.

 

(d)           The provisions of this Section 8
shall survive termination of this Agreement and the term of employment.

 

9.             Return of Inventions,
Products and Documents.  Employee
acknowledges and agrees that all Inventions, all products of the Company and
all originals and copies of records, reports, documents, lists, drawings,
memoranda, notes, proposals, contracts and other documentation related to the
business of the Company or containing any information described in this Section 9  shall be the sole and exclusive property of
the Company and shall be returned to the Company immediately upon termination
of Employee’s employment with the Company or upon the written request of the
Company.

 

10.          Injunction.  Employee agrees that it would be difficult to
measure damages to the Company from any breach by Employee of Sections 6, 7, 8
and/or 9 of this Agreement, and that monetary damages would be an inadequate
remedy for any such breach. Accordingly, Employee agrees that if Employee shall
breach Sections 6, 7, 8 and/or 9 of this Agreement, the Company shall be
entitled, in addition to all other remedies it may have at law or in equity, to
an injunction or other appropriate orders to restrain any such breach without
showing or proving any actual damage sustained by the Company.

 

11.          Obligations to Others.  Except for items fully disclosed in writing
to the Company, Employee represents and warrants to the Company that (i) Employee’s
employment by the Company does not violate any agreement with any prior
employer or other person or entity, and (ii) Employee is not subject to
any existing confidentiality or non-competition agreement or obligation, or any
agreement relating to the assignment of Inventions except as has been fully
disclosed in writing to the Company.

 

12.          Termination.

 

(a)           Employee may
voluntarily terminate his employment with the Company upon giving the Company
sixty (60) days written notice.

 

(b)           The Company may
terminate Employee’s employment without Cause (as defined below) upon giving
Employee thirty (30) days written notice of termination.

 

 

(c)           Employee’s employment with the Company shall
terminate upon the occurrence of any one of the following:

 

(i)            Employee’s
death;

 

(ii)           The
effective date of a notice sent to Employee stating the Board’s determination
made in good faith and after consultation with a qualified physician selected
by the Board, that Employee is incapable of performing his duties under this
Agreement, with or without reasonable accommodation, because of a physical or
mental incapacity that has prevented Employee from performing such full-time
duties for a period of ninety (90) consecutive calendar days and the
determination that such incapacity is likely to continue for at least another
ninety (90) days; and

 

(iii)          The effective date of a notice sent to
Employee terminating Employee’s employment for Cause.

 

(d)           “Cause”
means the occurrence of one or more of the following events:

 

(i)            Employee’s willful and repeated failure or
refusal to comply in any material respect with the reasonable lawful policies,
standards or regulations from time to time established by the Company, or to
perform his duties in accordance with this Agreement after notice to Employee
of such failure; and

 

(ii)           Employee engages in criminal conduct or
engages in conduct with respect to the Company that is dishonest, fraudulent or
materially detrimental to the reputation, character or standing of the Company.

 

13.          Termination
Compensation.

 

(a)           Upon Employee’s voluntary termination of
employment (other than voluntary termination with Good Reason  (as defined below), or termination of
Employee’s employment for Cause) the Company shall pay to Employee all
compensation due to the date of termination, but shall have no further
obligation to Employee hereunder in respect of any period following
termination.

 

(b)           Upon the death of Employee, the Company
shall pay to Employee’s estate or such other party who shall be legally
entitled thereto, all compensation due at the date of death, and an additional
amount equal to compensation at the rate set forth in this Agreement or then
current annual salary rate, whichever is greater, from the date of death to the
final day of the month following the month in which the death occurs.

 

 

(c)           Upon termination of Employee’s employment by
the Company other than for Cause, or upon Employee’s voluntary termination of
employment for Good Reason  the Company
shall (1) pay to Employee $630,000,without interest, payable as follows:
1/3 paid on the  effective date of
termination with the balance to be paid in equal installments over the 12
months following such effective date in accordance with the  Company’s standard payroll procedures; (2) all
outstanding options granted to Employee pursuant to the Company’s 1992 Stock
Incentive Plan, or successor plan, which vest with the passage of time (and are
not performance related) shall be immediately fully vested and (3) the
exercise period of all such options shall be extended to the earlier of their
original expiration date or  eighteen
(18) months from the date of termination.

 

(d)           Amounts payable under this Section shall
be net of amounts required to be withheld under applicable law and amounts
requested to be withheld by Employee.

 

(e)           As used herein, “Good Reason” shall mean the termination by Employee upon the
occurrence of any of the following events:

 

(i)            The assignment of a
different title or change that results in a material reduction in Employees
duties or responsibilities;

 

(ii)           A reduction by the
Company in Employee’s Base Salary, other than a salary reduction that is part
of a general salary reduction affecting employees generally and provided the
reduction is not greater, percentage-wise, than the reduction affecting other
employees generally or failure to provide an annual increase in Base Salary
commensurate with other Executives; provided, however,
in determining whether to provide an annual increase in Base Salary
commensurate with an annual increase provided to other Executives, the Company may take into account factors
such as market levels of compensation, Employee’s overall performance, and
other factors reasonably considered by the Company’s compensation committee
and/or Board of Directors, so long as such determination is not made in bad
faith with the intent to discriminate against Employee;

 

(iii)          Failure to pay Employee
a Bonus that is commensurate to any Bonus paid other Executives; provided, however, in determining whether any such Bonus
paid to Employee is commensurate with any Bonus paid to other Executives, the
Company may take into account factors such as market levels of compensation,
Bonuses paid in recognition of outstanding performance, hiring incentives and
other factors reasonably considered by the Company’s compensation committee
and/or Board of Directors, so long as any such determination is not made in bad
faith with the intent to discriminate against Employee;

 

(iv)          Relocation of Employee’s
principal place of business of greater than 30 miles from the Employee’s
principal place of business or 

 

 

Employee is required to spend more than 50%
of his professional time at the Company’s facilities in Corvallis, Oregon; or

 

(v)           A significant reduction
by the Company in total benefits available to Employee under cash incentive,
stock incentive, or other employee benefit plans or the failure to pay benefits
commensurate with other Executives; provided, however,
in determining whether to pay benefits commensurate with benefits provided to
other Executives, the Company may take
into account factors such as benefits reasonably available to other Executives,
Employee’s overall performance, other compensation paid or payable to
Employee, and other factors reasonably considered by the  Company’s compensation committee and/or Board
of Directors, so long as such determination is not made in bad faith with the
intent to discriminate against Employee.

 

As a condition of payment of the amounts set forth in this Section 13,
if requested by Company Employee agrees to enter into a Separation and Release
Agreement substantially in the form attached hereto as Exhibit C.

 

14.          Notice.  Unless otherwise provided herein, any notice,
request, certificate or instrument required or permitted under this Agreement
shall be in writing and shall be deemed “given” upon personal delivery to the
party to be notified or three business days after deposit with the United
States Service, by registered or certified mail, addressed to the party to
receive notice at the address set forth above, postage prepaid. Either party
may change its address by notice to the other party given in the manner set
forth in this Section.

 

15.          Entire Agreement.  This Agreement constitutes the entire
agreement between the parties and contains all the agreements between them with
respect to the subject matter hereof. It also supersedes any and all other
agreements or contracts, either oral or written, between the parties with
respect to the subject matter hereof;  provided, however, in the event any of Sections 6, 7, 8, 9,
or 10 of this Agreement is found enforceable in any way, then the comparable
section found in the November 1996 Prior Agreement shall be deemed to be
in full force and effect.

 

16.          Modification.  Except as otherwise specifically provided,
the terms and conditions of this Agreement may be amended at any time by mutual
agreement of the parties, provided that before any amendment shall be valid or
effective, it shall have been reduced to writing and signed by an authorized
representative of the Company and Employee.

 

17.          No Waiver.  The failure of any party hereto to exercise
any right, power or remedy provided under this Agreement or otherwise available
in respect hereof at law or in equity, or to insist upon compliance by any
other party hereto with its obligations, shall

 

 

not be a waiver by such
party of its right to exercise any such or other right, power or remedy or to
demand compliance.

 

18.          Severability.  In the event that any
section or provision of this Agreement shall be held to be illegal or
unenforceable, such section or provision shall be severed from this Agreement
and the entire Agreement shall not fail as a result, but shall otherwise remain
in full force and effect.

 

19.          Assignment.  This Agreement shall be binding upon and
inure to the benefit of the Company and its successors and assigns, and shall
be binding upon Employee, his administrators, executors, legatees, and heirs.
In that this Agreement is a personal services contract, it shall not be
assigned by Employee.

 

20.          Dispute
Resolution.  Except as
otherwise provided in Section 10, the Company and Employee agree that any
dispute between Employee and the Company or its officers, directors, employees,
or agents in their individual or Company capacity of this Agreement, shall be
submitted to a mediator for nonbinding, confidential mediation. If the matter
cannot be resolved with the aid of the mediator, the Company and Employee
mutually agree to arbitration of the dispute. The arbitration shall be in
accordance with the then-current Employment Dispute Resolution Rules of
the American Arbitration Association (“AAA”) before an arbitrator who is
licensed to practice law in the State of Oregon. The arbitration shall take
place in or near Portland, Oregon. Employee and the Company will share the cost
of the arbitration equally, but each will bear their own costs and legal fees
associated with the arbitration. However, if any party prevails on a statutory
claim, which affords the prevailing party attorneys’ fees, or if there is a
written agreement providing for attorneys’ fees, the arbitrator may award
reasonable attorneys’ fees.

 

The Company and Employee
agree that the procedures outlined in this provision are the exclusive method
of dispute resolution.

 

21.          Attorneys’
Fees.  In the event suit or action is
instituted pursuant to Section 10 of this Agreement, the prevailing party
in such proceeding, including any appeals thereon, shall be awarded reasonable
attorneys’ fees and costs.

 

22.          Applicable
Law.  This Agreement shall be
construed and enforced under and in accordance with the laws of the State of
Oregon.

 

23.          Counterparts.  This Agreement may be signed in two
counterparts, each of which shall be deemed an original and both of which shall
together constitute one agreement.

 

IN WITNESS WHEREOF, AVI
BioPharma, Inc. has caused this Agreement to be signed by its duly
authorized representative, and Employee has hereunder set his name as of the
date of this Agreement.

 

 

	
   

  	
  COMPANY:

  	
  AVI BioPharma, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ K. Michael Forrest  10/26/07

  	
   

  
	
   

  	
   

  	
  K.
  Michael Forrest, Interim Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  	
  /s/
  Alan P. Timmins  10/26/07

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Alan
  P. Timmins

  	
   

  
					

 

 

Exhibit A

 

List of
Offices Held

 

President
and Chief Operating Officer of AVI BioPharma, Inc.

 

 

Exhibit B

 

Inventions
Excluded from Covered Works

 

 

Exhibit C

Form of Separation and
Release Agreement

 

SEPARATION AND RELEASE AGREEMENT

 

THIS SEPARATION AND RELEASE AGREEMENT (“Agreement”)
is between [Name of Employee] D (“Employee”) and AVI BioPharma, Inc. (“Employer”),
and is effective eight (8) days after Employee signs this Agreement (“Effective
Date”).

 

The parties agree as follows:

 

1.                                       Resignation. Employee resigned his
position as Employer’s [Title] effective [effective date of termination] (the “Resignation
Date”).  Employee has been paid his
salary and other compensation through the Resignation Date, less all lawful or
required deductions.

 

2.                                       Consideration.   In consideration of  Employee’s
agreements hereunder, Employer shall pay to Employee the amounts set forth and
described in that certain Amended and Restated Employment Agreement dated
effective the      day of October, 2007.

 

3.                                       Return of Company Property. Employee
represents that he has returned all Employer property in his possession or
under his control, including but not limited to keys, credit cards, files,
laptop computer and any and all Company documents.

 

4.                                       Confidentiality. The parties will use
reasonable efforts to keep the terms of this Agreement confidential.  Employee may disclose the terms of this
Agreement to his immediate family. 
Employer may disclose the terms of this Agreement to its officers and
managers.  Either party may disclose the
terms of this Agreement to their respective attorneys, accountants, financial
advisers, auditors, or similar advisors, or in response to government
requests.  Third persons informed of the
terms of this Agreement shall in turn be advised of this confidentiality
provision and requested to maintain such confidentiality.

 

5.                                       Release.

 

5.1                                 In exchange for the consideration paid to
Employee as set forth in this Agreement, Employee forever releases and
discharges Employer, any of Employer-sponsored employee benefit plans in which
Employee participates, or was participating in, (collectively the “Plans”) and
all of their respective officers, members, managers, partners, directors,
trustees, agents, employees, and all of their successors and assigns
(collectively “Releasees”) from any and all claims, actions, causes of action,
rights, or damages, including costs and attorneys’ fees (collectively “Claims”)
which Employee may have arising out of his employment (including Claims that
may arise out of Employee’s employment agreement), on behalf of himself, known,
unknown, or later discovered which arose prior to the date Employee signs this
Agreement.  This release includes but is
not limited to, any Claims under any local, state, or federal laws prohibiting
discrimination in employment, including without limitation the Civil Rights
Acts, or the 

 

 

Oregon State Law
Against Discrimination, the Americans with Disabilities Act, the Age
Discrimination in Employment Act, or Claims under the Employee Retirement
Income Security Act, or Claims alleging any legal restriction on Employer’s
right to terminate its employees, any Claims Employee has relating to his
rights to or against any of the Plans, or personal injury Claims, including
without limitation wrongful discharge, breach of contract, defamation, tortious
interference with business expectancy, constructive discharge, or infliction of
emotional distress.  Employee represents
that he has not filed any Claim against Employer or its Releasees, he has no
knowledge of any facts that would support any Claim by Employee against
Employer or by a third party against Employer, and that he will file a Claim at
any time in the future concerning Claims released in this Agreement; provided,
however, that this will not limit Employee from filing a Claim to enforce the
terms of this Agreement.

 

5.2                                 In consideration of the promises of
Employee as set forth herein, Employer does hereby, and for its successors and
assigns, release, acquit and forever discharge Employee from any and all
actions, causes of action, obligations, costs, expenses, damages, losses,
claims, liabilities, suits, debts, and demands (including attorneys’ fees and
costs actually incurred), of whatever character in law or in equity known or
unknown, suspected or unsuspected, from the beginning of time to the date of
execution hereof.

 

6.                                       Non-disparagement. Employee and Employer each agree not to
make disparaging statements about each other, except in the case of Employer
statements that are required under applicable federal or state securities laws
or applicable rules and regulations of any exchange on which Employer’s
stock is traded.

 

7.                                       Consideration and Revocation
Periods. Employee
understands and acknowledges the significance and consequences of this
Agreement, that it is voluntary, that it has not been given as a result of any
coercion, and expressly confirms that it is to be given full force and effect
according to all of its terms, including those relating to unknown Claims.  Employee was hereby advised of his right to
seek the advice of an attorney prior to signing this Agreement.  Employee acknowledges that he has signed this
Agreement only after full reflection and analysis. Although he is free to sign
this Agreement before then, Employee acknowledges he was given at least 21 days
after receipt of this document in which to consider it (the “Consideration
Period”).  If Employee executes this
Agreement prior to the end of the Consideration Period, Employee hereby waives
any rights associated therewith. Employee may revoke this Agreement seven (7) days
after signing it and forfeit all benefits described in Section 2 of this
Agreement. Employee and Employer agree that any changes made to this Agreement
during the Consideration Period as a result of negotiations between the parties
do not restart the running of the Consideration Period.

 

8.                                       No Liability. This Agreement shall not
be construed as an admission by either party that it acted wrongfully with
respect to the other.

 

9.                                         Severability. If any of the provisions of this
Agreement are held to be invalid or unenforceable, the remaining provisions
will nevertheless continue to be valid and enforceable.

 

 

10.           Entire Agreement. This
Agreement represents and contains the entire understanding between the parties
in connection with its subject matter. 
All other prior written or oral agreements or understandings are merged
into and superseded by this Agreement. 
Employee acknowledges that in signing this Agreement, he has not relied
upon any representation or statement not set forth in this Agreement made by
Employer or any of its representatives.

 

11.           Attorney Fees. If
any suit or action is filed by either party to enforce this Agreement or
otherwise with respect to the subject matter hereof, the prevailing party shall
be entitled to recover reasonable attorney fees incurred in preparation or in
prosecution or defense of such suit or action as fixed by the trial court, and
if any appeal is taken from the decision of the trial court, reasonable
attorney fees as fixed by the appellate court.

 

12.           Choice of Law.
This Agreement is made and shall be construed and performed under the laws of
the State of Oregon.

 

PLEASE READ
CAREFULLY.  THIS AGREEMENT INCLUDES A
RELEASE OF CERTAIN KNOWN OR UNKNOWN CLAIMS.

 

 

	
  DATED
  this      day of       ,
  200X.

  	
  DATED
  this     day of       ,
  200X.

  
	
   

  	
   

  
	
   

  	
   

  
	
  AVI BioPharma, Inc

  	
   

  
	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
  Name: 

  	
  [Name of Employee]

  
	
  Title:Exhibit 10.61

 

PROFESSIONAL
SERVICES AGREEMENT

 

THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into effective the 26 day of October 2007,
by and between AVI BioPharma, Inc., an Oregon corporation (“Company”), with its principal place of business at One SW
Columbia, Suite 1105, Portland OR 
97258, and James B. Hicks PhD, LLC, an Oregon limited liability company
(“Contractor”), with its principal place
of business at 3 Great Meadow, Locust Valley, NY 11560.  Company and Contractor sometimes are
collectively referred to herein as the “Parties” and
individually as a “Party”.

 

Company and Contractor agree as follows:

 

1.             Services.  Contractor agrees to provide the services (“Services”) set forth on Schedule A attached
hereto and incorporated herein and in successive schedules that are agreed to
between the parties (collectively referred to herein as Schedule A).  Contractor represents and warrants that: (a) he
is in the business of providing services similar to the Services for companies
operating in the bioscience industry, (b) he will perform the Services
utilizing reasonable care and skill in accordance and consistent with customary
industry standards, and (c) without the consent of the Company, which may
be withheld in the sole discretion of the Company, he shall not assign to any
third party the obligation to provide any Services hereunder.

 

2.             Fees.  Company agrees to pay Contractor for the
Services, fees (“Fees”) in accordance with the
provisions set forth on Schedule A. 
During the term of the Agreement, the Fees and any of the elements
constituting the Fees shall not change without the prior written approval of
Company.  Unless otherwise provided for
in Schedule A, the following payment terms will apply.  Each month, Contractor will submit an invoice
to Company for Fees payable for Services during the preceding thirty (30) days
and Company will remit all properly payable amounts within thirty (30) days
after Company’s receipt of any such invoice. 
Each invoice or report accompanying an invoice will describe in
reasonable detail and with respect to the relevant invoice period (a) the
number of hours expended performing Services, itemized by task, (b) a
description of the excess Services provided, and (c) any work product
created. Unless otherwise provided for in Schedule A, Contractor shall
be responsible for paying all costs associated with the Services and its
business, including without limitation, costs for meals, lodging,
transportation, insurance, equipment, and liability insurance.  The Fees shall be the exclusive compensation
paid by Company to Contractor for the Services.

 

3.             Term and Termination.

 

(a)           Term.  This Agreement is effective on the date stated
above, and, unless otherwise terminated pursuant to this Section 3,
shall remain in effect for a period of two years.  This Agreement shall automatically renew for
successive one-year periods unless either party gives written notice of
termination during the sixty (60) day period immediately prior to expiration of
the term or any renewal term.

 

 

(b)                                  Termination.
Notwithstanding anything to the contrary herein, this Agreement may be
terminated prior to term end as follows:

 

(i)                                                       Consultant
may voluntarily terminate this Agreement upon giving the Company sixty (60)
days written  notice;

 

(ii)                                                    Company
may terminate this Agreement without Cause (as defined below) upon giving
Consultant not  less than sixty (60) days written notice of termination;

 

(iii)                                                 upon
the occurrence of any one of the following:

 

(A)                              Consultant’s
death;

 

(B)                                the
effective date of a notice sent to Consultant stating the Board’s determination
made in good faith and after consultation with a qualified physician selected
by the Board, that Consultant is incapable of performing his duties under this
Agreement, with or without reasonable accommodation, because of a physical or
mental incapacity that has prevented Consultant from performing such full-time
duties for a period of ninety (90) consecutive calendar days and the
determination that such incapacity is likely to continue for at least another
ninety (90) days; and

 

(C)                                the
effective date of a notice sent to Consultant terminating this Agreement for
Cause.

 

“Cause” means the
occurrence of one or more of the following events:

 

(i)                                                                                     Consultant’s
willful and repeated failure or refusal to comply in any material respect with
the reasonable lawful policies, standards or regulations from time to time
established by the Company, or to perform his duties in accordance with this
Agreement after notice to Consultant of such failure; or

 

(ii)                                                                                  Consultant
engages in criminal conduct or engages in conduct with respect to the Company
that is dishonest, fraudulent or materially detrimental to the reputation,
character or standing of the Company.

 

Upon
termination, Consultant shall be paid the Fees as set forth on Schedule A.

 

 

(c)           Survival.  Upon such termination,
Company shall have no further obligations to Contractor other than payment of
unpaid Fees in an amount equal to the percentage of Services completed as of
the date of termination.  Any termination
of this Agreement shall not relieve Contractor of its obligations under Sections 4,
5, 6, 7, 9, 10, 13 and 15,
this Section 3(c) (Survival) and any other provision that may
reasonably be interpreted to survive termination, nor shall any such
termination relieve Contractor or Company from any liability arising from any
breach of this Agreement.

 

(d)           Impact on Stock Options.  Notwithstanding anything to the contrary in
this Agreement, and for purposes of clarity, Company and Contractor acknowledge
and agree that options to purchase the Company’s common stock granted to
Contractor pursuant to a separate agreement and owned by Contractor as of the
date of this Agreement shall not terminate or expire by reason of the execution
of this Agreement, and shall continue in full force and effect from and after
the effective date of this Agreement in accordance with their terms, except and
to the extent amended by this Section 4(d).  Notwithstanding the foregoing, Company and
Contractor agree that as of the effective date of this Agreement the vesting
schedule of such options to purchase the Company’s common stock shall be
amended such that the vesting of such options shall cease as of the date of
termination of this Agreement for any reason. 
Further, notwithstanding anything to the contrary set forth in the
separate agreement granting Contractor options to purchase the Company’s common
stock, such options shall expire upon the earlier of (a) the date of
expiry set forth in the separate agreement granting the options or (b) the
date that is eighteen (18) months following termination of Contractor as an
independent contractor under this Agreement.

 

5.             Independent Contractor Status.  Contractor is an
independent contractor.  This Agreement
shall not create the relationship of employer and employee, a partnership or a
joint venture.  Company shall not control
or direct the details and means by which Contractor performs the Services.  Contractor shall determine the number of days
and hours of work.  Contractor acknowledges
that it has no authority to enter into contracts on behalf of Company or to
otherwise obligate Company in any respect.

 

6.             Responsibilities of Contractor.

 

(a)           Taxes. 
Contractor shall be responsible for payment of all taxes with respect to
its business and the Services, including, without limitation, income taxes,
sales taxes and business and occupation taxes. 
Company will not be responsible for any of the foregoing payments and
Contractor agrees to indemnify, defend and hold Company harmless from any loss
or damage that may be sustained as a result of, or in connection with,
Contractor’s failure to satisfy the requirements set forth in this Section 5(a).

 

(b)           Compliance with Laws.  Contractor shall comply with all federal,
state and local laws, ordinances, regulations and codes governing Services
performed under this Agreement. Contractor agrees to indemnify, defend and hold
Company harmless for any loss or damage that may be sustained as a result of,
or in connection with, Contractor’s failure to satisfy the requirements set
forth in this Section 5(b).

 

 

(c)           Conflict of Interest.  During the term of this Agreement, Contractor
represents and warrants that he will not perform services for others in a
manner that creates a conflict of interest with respect to the Services to be
performed for Company pursuant to this Agreement.

 

7.             Contractor Warranties.  Contractor represents and warrants that:

 

(a)           Contractor is under no contractual
restriction that would prohibit him from performing the Services;

 

(b)           Contractor’s execution, delivery and
performance of this Agreement will not violate any other employment,
nondisclosure, confidentiality, consulting or other agreement to which
Contractor is a party or by which he may be bound; and

 

(c)           Contractor will not use, in the
performance of the Services or the creation of any Proprietary Materials (as
such term is defined below in Section 10), or disclose to Company
any confidential or proprietary information of any other person if such use or
disclosure would violate any obligation or duty that Contractor owes to such
other person.  Contractor’s compliance
with this Section will not prohibit, restrict or impair Contractor’s
performance of the Services and his other obligations and duties to Company.

 

8.             Indemnification.
Contractor agrees to defend, hold harmless and indemnify Company, its
affiliates, and their respective directors, officers, employees, successors and
assigns from and against any and all losses, damages, claims, demands, suits,
liabilities, and expenses, including reasonable attorneys’ fees and expenses
associated therewith or with successfully establishing the right to
indemnification hereunder, which arise out of, in connection with, or result
from any claim, action or other proceeding that is based on Contractor’s breach
of any of the warranties or obligations contained in this Agreement.  Contractor agrees to defend Company, at
Company’s request, against any claim, demand or suit for which Contractor has
agreed to indemnify Company.  Company may,
at its option, conduct the defense in any such claim, demand or suit, and
Contractor agrees to cooperate fully with such defense.  Company agrees to notify Contractor within a
reasonable time of any written claims or demands against Company for which Contractor
is responsible under this Section.

 

9.             Non-Exclusive.  Subject to Section 6(c) and Section 14,
this Agreement shall not limit Contractor’s right to provide services for
others.  Notwithstanding anything to the
contrary in this Agreement, this Agreement does not grant to Contractor an
exclusive right or privilege to provide the Services.  Company may require or obtain the Services,
or services similar to the Services, from any other provider of its choice.  Company has no obligation to hire Contractor
for any work in addition to the Services described on Schedule A.

 

10.          Confidential Information.  As a condition to Company’s obligations under
this Agreement, Contractor agrees to enter into and abide by all the terms and
conditions of a nondisclosure agreement substantially in the form attached
hereto as 

 

 

Exhibit A, which upon execution
by the Parties shall be incorporated herein by this reference.

 

11.          Ownership and Use of Proprietary
Materials.

 

(a)           Proprietary Materials.  As used in this Agreement, “Proprietary Materials” means all products, devices, computer
programs, techniques, know-how, algorithms, procedures, discoveries or
inventions, whether patentable or copyrightable and whether reduced to
practice, and all materials, texts, drawings, specifications, source code, data
and other recorded information, in preliminary or final form and on any media
whatsoever, that is within the scope of Company’s business, research or
investigations or results from or is suggested by Contractor performance of the
Services.  It is specifically agreed that
all discoveries and improvements, designs and trademarks made or conceived by
the Consultant prior to the commencement of this Agreement or otherwise
identified on Schedule B attached hereto (the “Excluded Proprietary
Materials”) shall be excluded from the definition of Proprietary
Materials.  The parties will not jointly
develop an intellectual property.  If the parties wish to  jointly
develop intellectual property, ownership of and agreements concerning such
development shall be detailed in a separate written agreement entered into by
the parties prior to the start of any such joint development.

 

(b)           Ownership.  Company will be the exclusive owner of all
Proprietary Materials.  To the extent
permitted under the U.S. Copyright Act (17 U.S.C. § 101 et seq., and any
successor statute thereto), the Proprietary Materials will constitute “works
made for hire,” and the ownership of such Proprietary Materials will vest in
Company at the time they are created.  To
the extent the Proprietary Materials are not “works made for hire” under
applicable copyright laws, Contractor hereby assigns and transfers to Company
all right, title and interest that Contractor may now or hereafter have in the
Proprietary Materials, subject to the limitations set forth in Section 10(d),
below.

 

(c)           Further Acts.  Contractor will take such
action (including, but not limited to, the execution, acknowledgment, delivery
and assistance in preparation of documents or the giving of testimony) as may
be requested by Company to evidence, transfer, vest or confirm Company’s right,
title and interest in the Proprietary Materials.

 

(d)           Limitation.  Notwithstanding
any other provision of this Agreement to the contrary, this Section 10
will not obligate Contractor to assign or offer to assign to Company any of
Contractor’s rights in an invention for which no equipment, supplies,
facilities or trade secret information of Company was used and which was
developed entirely on Contractor’s own time, unless the invention results from
any work performed by Contractor for Company.

 

12.          Identification.  Contractor shall not, without Company’s prior
written consent, engage in advertising, promotion or publicity making public
use of any Identification in any circumstances related to this Agreement.  “Identification”
means any copy or semblance of any trade name, trademark, service mark,
insignia, symbol or logo of Company or its affiliates.

 

 

13.          Remedies.  The Parties agree that damages may be
inadequate to compensate for the unique losses to be suffered in the event of a
breach hereof, and that the damaged party will be entitled, in addition to any
other remedy it may have under this Agreement or at law, to seek and obtain
injunctive and other equitable relief, including specific performance of the
terms of this Agreement without the necessity of posting bond.

 

14.          Noncompetition.   Contractor shall not during the term of this
Agreement, and for twelve (12) months thereafter, be employed by, consult with,
or otherwise perform services for, participate in the ownership, management,
operation or control of, any Competitor of the Company.  Contractor shall not during the term of this
Agreement, and for twelve (12)  months
thereafter, be employed by, consult with, or otherwise perform services for,
participate in the ownership, management, operation or control of, any
Competitor of Company.  “Competitor” means any entity that directly or indirectly
engages in research and development of drugs or products that rely upon or
utilize antisense, exon skipping or other technologies that are utilized by the
Company as part of its drug development activities.

 

15.          Notices.   Any notice or demand which under the terms
of this Agreement or under any statute must be given or made by Contractor or
Company shall be in writing and shall be given and effective upon receipt if
delivered in person, by cable, telegram, or facsimile; one day after deposit
prepaid with a national overnight express delivery service; or, three days
after deposit in the United States mail (registered or certified mail, postage
prepaid, return receipt requested).  Each
Party shall be responsible for notifying the other of any change in address for
purposes of this paragraph.  Notices
shall be provided the following representatives at the addresses below listed:

 

	
  Company:

  	
  To:

  	
   

  	
  AVI
  BioPharma, Inc.

  One SW Columbia 

  Suite 1105 

  Portland OR 97258 

  Fax: (503) 227-0751 

  Attention: Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  Contractor:

  	
  To:

  	
   

  	
  James B. Hicks PhD, LLC
  

  3 Great Meadow 

  Locust Valley, NY 11560
  

  Fax: (516) 367-8382 

  Attention:
  Mr. James B. Hicks

  

 

The above addresses may
be changed at any time by giving prior written notice as above provided.

 

16.          Miscellaneous.

 

(a)           Any delay or failure of either Party
to this Agreement to enforce at any time any of its provisions or terms shall
not be construed to be a waiver of such provision or term, nor of the right of
either Party to later enforce such term or provision.  The express waiver by a Party 

 

 

hereto of any right or
remedy in a particular instance will not constitute a waiver thereof in any
other instance.  All rights and remedies
will be cumulative and not exclusive of any other rights or remedies.

 

(b)           This
Agreement shall be governed by the laws of the State of Oregon without regard
to any rules governing conflict of laws. 
Venue for any action arising out of or related to this Agreement shall
be in Multnomah County, Oregon.

 

(c)           If
any provision of this Agreement is held to be unenforceable, the remaining
provisions will nevertheless continue to be valid and enforceable.

 

(d)           Each
Party’s obligations hereunder are in addition to, and not exclusive of, any and
all of its other obligations and duties to the other Party, whether express,
implied, in fact or in law.

 

(e)           This
Agreement represents and contains the entire understanding between the Parties
in connection with its subject matter, and all prior or contemporaneous oral or
written communications, understandings or agreements between Company and
Contractor with respect to such subject matters are hereby superseded in their
entireties. The Parties acknowledge that they have not relied upon any
representation or statement not set forth in this Agreement made by the other
Party or that Party’s agent.  This
Agreement will not be amended, modified, altered or varied except in a written
document signed by both Parties.

 

(f)            This
Agreement may be executed in any number of counterparts, all of which when
taken together shall constitute one agreement binding on each Party, notwithstanding
that each Party is not a signatory to the same counterpart.

 

(g)           This
Agreement shall not be assigned or transferred by Contractor without the prior
written consent of Company.

 

[Remainder
of page intentionally left blank. 
Signature page follows.]

 

 

The Parties have signed this Agreement as of the date
first set forth above.

 

	
  COMPANY: 

  	
  CONTRACTOR: 

  
	
   

  	
   

  
	
  AVI BIOPHARMA, INC. 

  	
  James B. Hicks PhD, LLC
  

  
	
   

  	
   

  
	
  By: 

  	
  /s/ K. Michael Forrest 

  	
   

  	
  By: 

  	
  /s/ James B. Hicks 

  
	
  Name: K. Michael
  Forrest 

  	
  Name: James B. Hicks 

  
	
  Title:   Chief
  Executive Officer 

  	
  Title: Member 

  
	
             10/26/07

  	
           10/26/07

  
					

 

 

SCHEDULE A

 

SERVICES AND FEES

 

This Statement of
Work (“SOW”) is entered into between AVI
BioPharma, Inc. (“Company”) and
James B. Hicks PhD, LLC (“Contractor”).  Reference is made to the Professional
Services Agreement between Company and Contractor dated as of the
     day of October 2007 (the “Agreement”),
which this SOW is subject to and made a part of.

 

Table 1: Consulting Scope of Work, Fees

 

	
  ACTIVITY

  	
   

  	
  KEY DELIVERABLES

  	
   

  	
  Fees

  	
   

  
	
  1. Retainer

  	
   

  	
  ·                  Services
  as requested up to 8 hours per month.

  	
   

  	
  ·                  $2,500
  per month plus options each year of the Agreement to purchase 10,000 shares
  of the Company’s common stock. Such options shall have an exercise price not
  less than fair market value on the grant date and shall vest ratably on each
  monthly anniversary date of the grant over twelve months of continued service
  as a Consultant.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. As requested

  	
   

  	
  ·                  Services
  in excess of 8 hours per month

  	
   

  	
  ·                  $312.50/hour

  	
   

  

 

Additional Expenses:
Reasonable travel and other expenses in connection with Services, including
attendance at Board meetings as requested.

 

 

Payment of Fees in the Event of
Termination:

 

·                  Voluntary Termination by
Consultant: Fees earned through the effective date of termination; vesting
of options ceases as of effective date of termination and options remain
exercisable for 18 months or the expiry date of the option, whichever earlier.

 

·                  Termination by Company without
Cause: Fees earned through effective date of termination/end of current term;
vesting of options accelerates and options remain exercisable for 18 months or
the expiry date of the option, whichever earlier.

 

·                  Termination by Company upon
Consultant’s Death or Disability: Fees earned through effective date of
termination/end of current term; vesting of options accelerates and options
remain exercisable for 18 months or the expiry date of the option, whichever
earlier.

 

·                  Termination by Company With Cause:  Fees earned through effective date of
termination; termination of all unvested options on effective date of
termination, vesting of options ceases as of effective date of termination and
options remain exercisable for 90 days or the expiry date of the option,
whichever earlier.

 

 

SCHEDULE
B

 

EXCLUDED
PROPRIETARY MATERIALS

 

 

EXHIBIT A

 

NON-DISCLOSURE AGREEMENT

 

This Non-Disclosure
Agreement (this “Agreement”) is entered into as
of  October     ,
2007 (the “Effective Date”), by and between
AVI BioPharma, Inc., an Oregon corporation (the “Company”)
and
                                                  
(the “Recipient”) (each, a “Party” and, collectively, the “Parties”).

 

RECITALS

 

A.                                   The
Recipient is a consultant to the Company and will be  providing 
professional services to the Company in accordance with that certain
Professional Services Agreement dated as of the      day of
October 2007 (the “Consulting Agreement”).

 

B.                                     In
connection with the Consulting Agreement, the Company will disclose to the
Recipient certain material, non-public information about the Company.  As a condition precedent to providing such
information to the Recipient, the Parties have agreed to enter into this
Agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants expressed herein and other valuable
consideration, the receipt and sufficiency of which are acknowledged, the
Parties agree as follow

 

I.              DEFINITIONS.  FOR THE PURPOSES OF THIS AGREEMENT:

 

A.                                    “Affiliate” of a Party means
any entity that a Party directly or indirectly controls, or is controlled by,
including but not limited to employees, agents, and entities.

 

B.                                    “Confidential Information” means any
business, marketing, technical, or other information in tangible or intangible
form, disclosed by the Company to the Recipient that, at the time of
disclosure, is designated as confidential (or like designation), is disclosed
in circumstances of confidence, or would be understood by the Parties (or their
Affiliates), exercising reasonable business judgment, to be confidential,
specifically including Company business plans, product concepts, technical
know-how, methods of and other information relating to operations, development
strategies, distribution arrangements, financial data, marketing plans, and
business practices, policies, or objectives.

 

II.            DISCLOSURE, USE RESTRICTIONS AND
PROPRIETARY RIGHTS.

 

A.                                    Disclosure and Use.

 

1.                                      Any Confidential
Information received by the Recipient shall be retained in confidence,
disclosed only to Affiliates solely on a need to know basis, and used only in
accordance with this Agreement. The Recipient shall use 

 

 

at least the same
degree of care as it uses to protect his/its own confidential information of a
similar nature, but no less than reasonable care, to prevent the unauthorized
use or disclosure of the Confidential Information.  The obligations of confidence set forth in
this Agreement shall extend to any of the Recipient’s Affiliates, including the
Recipient’s attorneys, advisors, directors, executive officers and employees
that may receive Confidential Information. 
The Recipient shall notify its attorney(s), advisors, directors,
officers and Affiliates of the requirements of this Agreement and require that
such persons comply with the requirements of this Agreement.

 

2.                                      In accordance
with Section 2.4 below, the Recipient shall notify the Company immediately
upon discovery of any unauthorized use or disclosure of Confidential
Information or any other breach of this Agreement by the Recipient, its
officers, directors, advisors, attorneys, employees, or Affiliates, and will
cooperate with the Company to assist the Company to regain possession of the
Confidential Information and prevent its further unauthorized use or
disclosure.

 

B.                                    Exemptions. 
The Recipient shall not be bound by the obligations
restricting disclosure and use set forth in this Agreement with respect to
Confidential Information, or any part thereof, which:  (i) was known by the Recipient prior to
disclosure, except if such Confidential Information, or any part thereof,
became known to Recipient as a result of or in connection with prior positions
or roles Recipient had with the Company that allowed Recipient to know or
become exposed to or aware of such Confidential Information or any part
thereof, in which case  such Confidential
Information or such part thereof shall be deemed to be Confidential Information
subject to subparagraphs (ii), (iii), (iv) and (v) herein; (ii) was
lawfully in the public domain prior to its disclosure, or becomes publicly
available other than through a breach of this Agreement; (iii) was
disclosed to the Recipient by a third party, provided such third party is not
in breach of any confidentiality obligation in respect of such information; (iv) is
independently developed by the Recipient, where the burden is on the Recipient
to prove independent development; or (v) is disclosed when such disclosure
is compelled pursuant to legal, judicial or administrative proceedings, or
otherwise required by law, subject to the Recipient giving reasonable prior
notice to the Company Party to allow the Company to seek protective court
orders. The foregoing exemptions shall extend to any Affiliates that receive or
have received Confidential Information.

 

C.                                    Proprietary Rights. 
The Recipient (including its Affiliates) shall not acquire
any rights, express or implied, in the Confidential Information of the Company
(including its Affiliates), except for the limited use specified in this
Agreement. The Confidential Information, including all right, title and
interest therein, remain the sole and exclusive property of the Company (and its
Affiliates).

 

 

D.                                    Compulsory Disclosure. 
If the Recipient is legally compelled to disclose any of
the Confidential Information, the Recipient shall promptly provide written
notice to the Company to enable the Company (at its sole cost and expense) to seek
a protective order or other appropriate remedy to avoid public or third-party
disclosure of its Confidential Information. 
If such protective order or other remedy is not obtained, the Recipient
shall furnish only so much of the Confidential Information that it is legally
compelled to disclose, and shall exercise its commercially reasonable efforts
to obtain reliable assurance that confidential treatment will be accorded the
Confidential Information. The Recipient shall cooperate with and assist the Company,
at the Company’s expense, in seeking any protective order or other relief
requested pursuant to this Section 2.4.

 

III.                                 REMEDIES.  THE RECIPIENT AGREES THAT ANY VIOLATION OR
THREATENED VIOLATION OF THIS AGREEMENT WILL CAUSE IRREPARABLE HARM TO THE COMPANY,
ENTITLING THE COMPANY TO SEEK INJUNCTIVE RELIEF IN ADDITION TO ALL OTHER LEGAL
REMEDIES.

 

IV.           TERM OF OBLIGATION.

 

A.                                    Term. 
The confidentiality obligations set forth in this Agreement
shall continue with regard to an item of information as long as that
information continues to meet the definition of “Confidential Information” and
is not exempt under Section 2.2.

 

B.                                    Return of Confidential Information. 
At any time upon written request by the Company, the
Recipient shall return or destroy all documents or other materials embodying
Confidential Information, shall retain no copies thereof, and shall certify in
writing that such destruction or return has been accomplished. The
confidentiality obligations set forth in this Agreement shall survive any termination
of the Agreement.

 

V.                                    SECURITIES LAWS.  THE RECIPIENT HEREBY ACKNOWLEDGES THAT THE
COMPANY IS A PUBLICLY TRADED COMPANY. 
THE RECIPIENT HEREBY ACKNOWLEDGES THAT HE IS AWARE THAT FEDERAL AND
STATE SECURITIES LAWS PROHIBIT ANY PERSON WHO HAS RECEIVED MATERIAL, NON-PUBLIC
INFORMATION (INFORMATION ABOUT THE COMPANY OR ITS BUSINESS THAT IS NOT
GENERALLY AVAILABLE TO THE PUBLIC) CONCERNING THE COMPANY, INCLUDING, WITHOUT
LIMITATION, THE MATTERS THAT ARE THE SUBJECT OF THIS AGREEMENT, FROM PURCHASING
OR SELLING SECURITIES OF THE COMPANY WHILE IN POSSESSION OF SUCH NON-PUBLIC
INFORMATION, AND FROM COMMUNICATING THAT INFORMATION TO ANY OTHER PERSON WHO MAY PURCHASE
OR SELL SECURITIES OF THE COMPANY OR OTHERWISE VIOLATE SUCH LAWS.  THE RECIPIENT SPECIFICALLY ACKNOWLEDGE THESE
OBLIGATIONS AND AGREES TO BE BOUND BY THEM.

 

 

VI.           GENERAL.

 

A.                                    Waiver. 
The failure of the Company to claim a breach of any term of
this Agreement shall not constitute a waiver of such breach or the right of the
Company to enforce any subsequent breach of such term.

 

B.                                    Assignment. 
This Agreement shall be binding on and inure to the benefit
of each Party and their respective successors and assigns.

 

C.                                    Severability. 
In the event that any provision of this Agreement is found
to be invalid, void or unenforceable, the Parties agree that unless such
provision materially affects the intent and purpose of this Agreement, such
invalidity, void ability or unenforceability shall not affect the validity of
this Agreement nor the remaining provisions herein.

 

D.                                    Governing Law. 
This Agreement shall be governed by the laws of the State
of Oregon, without regard to its conflict of law principles. The jurisdiction
for any legal action shall be exclusively a state or federal court in Multnomah
County, Oregon.

 

E.                                      Entire Agreement. 
This Agreement constitutes the entire agreement between the
parties on the subject matter hereof and supersedes all prior agreements,
communications and understandings of any nature whatsoever, oral or written.
This Agreement may not be modified or waived orally and may be modified only in
a writing signed by a duly authorized representative of both parties.

 

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
duly authorized representatives and to be effective on the Effective Date.

 

	
  Company

  	
  Recipient

  
	
  AVI
  BioPharma, Inc.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Print Name: K. Michael
  Forrest

  	
  Print Name:

  	
   

  
	
  Title: Interim CEO

  	
  Date

  	
   

  
	
  Date:

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