Document:

Prepared by MerrillDirect

Exhibit 10.33

EMPLOYMENT
AGREEMENT

 

                THIS EMPLOYMENT
AGREEMENT ("Agreement"), made this 11th day of May, 2000, 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 Mark M. Webber ("Employee").

RECITALS:

                A.            Employee, through his career as a
financial executive, possesses knowledge and skills that are highly desirable
to the Company. 

                B.            The Company may benefit
significantly from the knowledge and skills of the Employee.

                C.            The Company desires to employ
Employee, subject to appropriate confidentiality and non-competition clauses
contained herein, to leverage its technology with Employee's knowledge and
skills to the mutual benefit of the Company, the Employee, and to the benefit
of the Company's shareholders.

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 May 11, 2000 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 $150,000, 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: (a) 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; (b) matters of a business nature,
such as information about costs, profits, pricing policies, markets, sales,
suppliers, customers, plans for future development, plans for future products,
marketing plans or strategies; and (c) 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 (i) will keep secret and retain in the strictest
confidence all Confidential Information, (ii) 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 (iii)
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 paragraph 6 shall
survive termination of this Agreement.

                7.             Noncompetition.

                                (a)           Employee agrees that during the Term
and for a period of two (2) years following termination of employment with the
Company for any reason, he will not directly or indirectly engage in any
activity directed toward the development of any uncharged sequence-specific
nucleic acid-binding agents or any nucleic acid purification and concentration
or detection system using uncharged sequence-specific nucleic acid-binding
agents.

 

                                (b)           Employee agrees that during the Term
and for a period of two (2) years following termination of employment with the
Company for any reason, he will not directly or indirectly engage in any
activity directed towards the development of drug delivery systems related to
the "molecular engine" as defined in US patent application Serial No.
60/016,347 and 60/028,609 or in any other patents or patent applications filed
or Contemplated at any time during the Term. 
Patents or patent applications "Contemplated" are those included,
recorded or discussed in the notebooks of researchers employed by or performing
services on behalf of the Company.  

                                (c)           Employee agrees that during the Term
and for a period of two (2) years following termination of employment with the
Company for any reason, he will not directly or indirectly engage in any
activity directed towards the development of cancer vaccines or related
products, the rights to which have been or will be acquired from Ohio State
University as part of the AVI/ITC merger, or in any other patents or patent
applications filed, Contemplated, or acquired at any time during the Term.  Patents or patent applications
"Contemplated" are those included, recorded or discussed in the notebooks
of researchers employed by or performing services on behalf of the Company.

                                (d)           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.  

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

                8.             Covered Work.  

                                (a)           All right, 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 any 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 paragraph 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 paragraph shall be the sole and
exclusive property of the Company and shall be returned to the Company
immediately upon the 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 paragraph 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 paragraph 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 noncompetition 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:

                                                (1)           Employee's death;

                                                (2)           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 a least another ninety (90) such days; and

                                                (3)           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:

                                                (1)           Employee's willful and repeated
failure or refusal to comply in any material respect with the reasonable and
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

                                                (2)           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 after a Change of Control (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 to the date of death, and an additional
amount equal to compensation at the rate set forth in this Agreement 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 after a Change of Control, the Company shall pay to
Employee an amount equal to twelve (12) months' compensation calculated with
reference to Employee's then current annual compensation (exclusive of
bonuses), which amount shall be due and payable at 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)           Upon Termination of Employee's
employment by the Company other than for Cause, all outstanding options granted
to Employee pursuant to the Company's 1992 Stock Incentive Plan, which vest
with the passage of time (and are not performance related) shall be immediately
fully vested.

                                (f)            As used herein, "Change of
Control" means the occurrence of any one of the following events: (i) any
Person becomes the beneficial owner of twenty-five percent (25%) or more of the
total number of voting shares of the Company; (ii) any Person (other than the
Persons named as proxies solicited on behalf of the Board of Directors of the
Company) holds revocable or irrevocable proxies representing twenty-five
percent (25%) or more of the total number of voting shares of the Company;
(iii) any Person has commenced a tender or exchange offer, or entered into an
agreement or received an option, to acquire beneficial ownership of twenty-five
percent (25%) or more of the total number of voting shares of the Company; and
(iv) as the result of, or in connection with, any cash tender or exchange
offer, merger, or other business combination, sale of assets, or any
combination of the foregoing transactions, the persons who were directors of
the Company before such transactions shall cease to constitute at least
two-thirds (2/3) of the Board of Directors of the Company or any successor
entity.

                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 Postal 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.

                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 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 paragraph or provision of this
Agreement shall be held to be illegal or unenforceable, such paragraph 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: Alan P. Timmins
	 	 
	 	 
	 	 
	EMPLOYEE:	Mark M. Webber

Exhibit A

 

List of Offices Held

 

 

Exhibit B

 

Inventions Excluded from Covered
WorksPrepared by MerrillDirect

Exhibit 10.34

EMPLOYMENT
AGREEMENT

                THIS EMPLOYMENT
AGREEMENT ("Agreement"), made this 1st day of November, 2000, 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 David H. Mason, Jr., M.D. ("Employee").

RECITALS:

                A.            Employee,
through his career as a physician and a pharmaceutical executive, possesses
knowledge and skills that are highly desirable to the Company. 

                B.            The Company possesses and will possess
technology which may benefit significantly from the knowledge and skills of the
Employee.

                C.            The Company desires to employ
Employee, subject to appropriate confidentiality and non-competition clauses
contained herein, to leverage its technology with Employee's knowledge and
skills to the mutual benefit of the Company, the Employee, and to the benefit
of the Company's shareholders.

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 November 1, 2000 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 $225,000, 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: (a) 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; (b) matters of a
business nature, such as information about costs, profits, pricing policies,
markets, sales, suppliers, customers, plans for future develop­ment, plans for
future products, marketing plans or strategies; and (c) 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 (i) will keep secret and retain
in the strictest confidence all Confidential Information, (ii) 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 (iii) 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
paragraph 6 shall survive termination of this Agreement.

                7.             Noncompetition.

                                (a)           Employee agrees that during the Term
and for a period of two (2) years following termination of employment with the
Company for any reason, he will not directly or indirectly engage in any
activity directed toward the development of any uncharged sequence-specific
nucleic acid-binding agents or any nucleic acid purification and concentration
or detection system using uncharged sequence-specific nucleic acid-binding
agents.

 

                                (b)           Employee agrees that during the Term
and for a period of two (2) years following termination of employment with the
Company for any reason, he will not directly or indirectly engage in any
activity directed towards the development of drug delivery systems related to
the "molecular engine" as defined in US patent application Serial No.
60/016,347 and 60/028,609 or in any other patents or patent applications filed
or Contemplated at any time during the Term. 
Patents or patent applications "Contemplated" are those
included, recorded or discussed in the notebooks of researchers employed by or
performing services on behalf of the Company. 

                                (c)           Employee agrees that during the Term
and for a period of two (2) years following termination of employment with the
Company for any reason, he will not directly or indirectly engage in any
activity directed towards the development of cancer vaccines or related
products, the rights to which have been or will be acquired from Ohio State
University as part of the AVI/ITC merger, or in any other patents or patent
applications filed, Contemplated, or acquired at any time during the Term.  Patents or patent applications
"Contemplated" are those included, recorded or discussed in the
notebooks of researchers employed by or performing services on behalf of the
Company.

                                (d)           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.  

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

                8.             Covered
Work.  

                                (a)           All right, 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 any 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 paragraph 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 para­graph shall be the sole
and exclusive property of the Company and shall be returned to the Company
immediately upon the 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 paragraph 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 paragraph 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 noncompetition 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:

                                                (1)           Employee's death;

                                                (2)           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 a least another ninety (90) such days; and

                                                (3)           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:

                                                (1)           Employee's willful and repeated
failure or refusal to comply in any material respect with the reasonable and
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

                                                (2)           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 after a Change of Control (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 to the date of death, and an additional
amount equal to compensation at the rate set forth in this Agreement 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 after a Change of Control, the Company shall pay to
Employee an amount equal to twelve (12) months' compensation calculated with
reference to Employee's then current annual compensation (exclusive of
bonuses), which amount shall be due and payable at 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)           Upon Termination of Employee's
employment by the Company other than for Cause, all outstanding options granted
to Employee pursuant to the Company's 1992 Stock Incentive Plan, which vest
with the passage of time (and are not performance related) shall be immediately
fully vested.

                                (f)            As used herein, "Change of
Control" means the occurrence of any one of the following events: (i) any
Person becomes the beneficial owner of twenty-five percent (25%) or more of the
total number of voting shares of the Company; (ii) any Person (other than the
Persons named as proxies solicited on behalf of the Board of Directors of the
Company) holds revocable or irrevocable proxies representing twenty-five
percent (25%) or more of the total number of voting shares of the Company;
(iii) any Person has commenced a tender or exchange offer, or entered into an
agreement or received an option, to acquire beneficial ownership of twenty-five
percent (25%) or more of the total number of voting shares of the Company; and
(iv) as the result of, or in connection with, any cash tender or exchange
offer, merger, or other business combination, sale of assets, or any
combination of the foregoing transactions, the persons who were directors of
the Company before such transactions shall cease to constitute at least
two-thirds (2/3) of the Board of Directors of the Company or any successor
entity.

                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 Postal 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.

                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 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 paragraph or provision of this
Agreement shall be held to be illegal or unenforceable, such paragraph 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: Alan P. Timmins
	 	 
	 	 
	 	 
	EMPLOYEE:	DAVID H. MASON, JR., M.D.

 

 

Exhibit A

 

List of Offices Held

 

 

Exhibit B

 

Inventions Excluded from Covered
Works

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]