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REGISTRATION RIGHTS AGREEMENT    
  

        This Registration Rights Agreement (this "Agreement") is made and entered into as of March 25, 2002, by and
among AVI BioPharma, Inc. an Oregon corporation (the "Company"), and each of the purchasers identified on the signature pages hereto (each a
"Purchaser" and collectively, the "Purchasers"). 

        This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date hereof among the Company and the Purchasers (the "Purchase Agreement"). 

        The
Company and the Purchasers hereby agree as follows: 

        1.
Definitions. Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings
given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings: 

        "Effectiveness
Date" means the earlier of (a) the 120th day following the Closing Date and (b) the fifth Trading Day following the date on which the Company is notified by
the Commission that such Registration Statement will not be reviewed or is no longer subject to further review and comments. 

        "Effectiveness Period" shall have the meaning set forth in Section 2(a). 

        "Filing Date" means, with respect to the initial Registration Statement required to be filed hereunder, the 30th day following the Closing
Date. 

        "Holder" or "Holders" means the holder or holders, as the case may be, from time to time
of Registrable Securities. 

        "Indemnified Party" shall have the meaning set forth in Section 5(c). 

        "Indemnifying Party" shall have the meaning set forth in Section 5(c). 

        "Losses" shall have the meaning set forth in Section 5(a). 

        "Proceeding" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened. 

        "Prospectus" means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

        "Registrable Securities" means the shares of Common Stock issued pursuant to the Purchase Agreement and issuable upon exercise of the
Warrants. 

        "Registration Statement" means the initial registration statement required to be filed hereunder and any additional registration
statements contemplated by Section 2(d), including (in each case) the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement. 

        "Rule 144" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

        "Rule 415" means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

 

        "Rule 424" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

        "Warrants" means the Common Stock purchase warrants issued pursuant to the Purchase Agreement. 

        2.
Registration.

        (a)  On
or prior to the Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the Registrable Securities for an offering to be
made on a continuous basis pursuant to Rule 415. The Registration Statement shall be on Form S-3 (except if the Company is not then eligible to register for resale the
Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form in accordance herewith) and shall contain (except if otherwise required by
the Commission) the "Plan of Distribution" attached hereto as Annex A. The Company shall cause the
Registration Statement to become effective and remain effective as provided herein. The Company shall use its best efforts to cause the Registration Statement to be declared effective under the
Securities Act as promptly as possible after the filing thereof, but in any event prior to its Effectiveness Date, and shall use its best efforts to keep the Registration Statement continuously
effective under the Securities Act until the date which is the earlier date of when (i) all Registrable Securities have been sold or (ii) all Registrable Securities may be sold
immediately without registration under the Securities Act and without volume restrictions pursuant to Rule 144(k), as determined by the counsel to the Company pursuant to an unqualified written
opinion letter to such effect, addressed and acceptable to the Company's transfer agent and the affected Holders (the "Effectiveness Period"). 

        (b)  If:
(a) any Registration Statement is not filed on or prior to the Filing Date; (b) a Registration Statement filed hereunder is not declared effective by
the Commission by the Effectiveness Date; (c) after a Registration Statement is filed with and declared effective by the Commission, such Registration Statement ceases to be effective (by
suspension or otherwise) as to all Registrable Securities to which it is required to relate at any time prior to the expiration of the Effectiveness Period without being succeeded within fifteen
(15) Trading Days by an amendment to such Registration Statement or by a subsequent Registration Statement filed with and declared effective by the Commission; (d) the Common Stock is
not listed or quoted, or is suspended from trading on the Nasdaq National Market for a period of three (3) Trading Days (which need not be consecutive Trading
Days); or (e) the exercise rights of the Holders pursuant to the Warrants are suspended for any reason (any such failure or breach being referred to as an
"Event," and for purposes of clause (a), (b) or (e) the date on which such Event occurs, or for purposes of clause (c) the
date which such fifteen (15) Trading Day-period is exceeded, or for purposes of clause (d) the date on which such three (3) Trading Day period is exceeded, being
referred to as "Event Date"), then until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as liquidated damages
and not as a penalty, equal to 1.0% for each thirty (30) day period (prorated for partial periods) on a daily basis of the aggregate purchase price paid by such Holder pursuant to the Purchase
Agreement. Such liquidation damages shall be paid not less than each thirty (30) days during an Event and within three (3) days following the date on which such Event has been cured by
the Company. If the Company fails to pay any liquidated damages pursuant to this Section in full within seven days after the date payable, the Company will pay interest thereon at a rate of 18% per
annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such liquidated damages are due until such amounts, plus all such
interest thereon, are paid in full. 

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        3.
Registration Procedures

        In
connection with the Company's registration obligations hereunder, the Company shall: 

        (a)  Not
less than three (3) Trading Days prior to the filing of the Registration Statement or any related Prospectus or any amendment or supplement thereto, the
Company shall, (i) furnish to the Holders copies of all such documents proposed to be filed (including documents incorporated or deemed incorporated by reference) which documents will be
subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent certified public accountants to respond to such inquiries as shall be necessary, in the
reasonable opinion of respective counsel to conduct a reasonable investigation within the meaning of the Securities Act. The Company shall not file the Registration Statement or any such Prospectus or
any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall reasonably object in good faith. 

        (b)  (i) Prepare
and file with the Commission such amendments, including post-effective amendments, to the Registration Statement and the Prospectus used
in connection therewith as may be necessary to keep the Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with
the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be
amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible, and
in any event within ten (10) days, to any comments received from the Commission with respect to the Registration Statement or any amendment thereto and, as promptly as reasonably possible
provide the Holders true and complete copies of all correspondence from and to the Commission relating to the Registration Statement; and (iv) comply in all material respects with the
provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by the Registration Statement during the applicable period in accordance
with the
intended methods of disposition by the Holders thereof set forth in the Registration Statement as so amended or in such Prospectus as so supplemented. 

        (c)  Notify
the Holders of Registrable Securities to be sold as promptly as reasonably possible (and, in the case of (i)(A) below, not less than three (3) Trading Days
prior to such filing) and (if requested by any such Person) confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to the Registration Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a "review" of such
Registration Statement and whenever the Commission comments in writing on such Registration Statement (the Company shall provide true and complete copies thereof and all written responses thereto to
each of the Holders); and (C) with respect to the Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the
Commission or any other Federal or state governmental authority for amendments or supplements to the Registration Statement or Prospectus or for additional information; (iii) of the issuance by
the Commission of any stop order suspending the effectiveness of the Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose;
(iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time that makes the financial statements included in the
Registration Statement ineligible for inclusion therein or any statement made in the Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference
untrue in any material respect or that requires any revisions to the Registration Statement, Prospectus or other documents 

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so that, in the case of the Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 

        (d)  Use
its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of the Registration Statement,
or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment. 

        (e)  Furnish
to each Holder, without charge, at least one conformed copy of the Registration Statement and each amendment thereto, including financial statements and
schedules, all documents incorporated or deemed to be incorporated therein by reference, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated
by reference) promptly after the filing of such documents with the Commission. 

        (f)    Promptly
deliver to each Holder, without charge, as many copies of the Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement
thereto as such Persons may reasonably request. The Company hereby consents to the use of such Prospectus and each amendment
or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto. 

        (g)  Use
its best efforts to register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from such
registration or qualification) of all applicable Registrable Securities for offer and sale under the securities or Blue Sky laws of all applicable jurisdictions within the United States as any Holder
requests in writing, to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things necessary or
advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by a Registration Statement; provided, that the Company
shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or subject the Company to any material tax in any such jurisdiction where it is not then
so subject. 

        (h)  Cooperate
with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant
to a Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such
denominations and registered in such names as any such Holders may request. 

        (i)    Upon
the occurrence of any event contemplated by Section 3(c)(v), as promptly as reasonably possible, prepare a supplement or amendment, including a
post-effective amendment, to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file
any other required document so that, as thereafter delivered, neither the Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 

        (j)    Comply
with all applicable rules and regulations of the Commission. 

        (k)  The
Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common Stock beneficially owned by such Holder
and such other reasonable information as the Company is required to obtain for inclusion in the Registration Statement. 

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        4.
Registration Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be
borne by the Company whether or not any Registrable Securities are sold pursuant to the Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses (A) with respect to filings required to be made with the Trading Market on which the Common Stock is then listed for trading, and (B) in compliance with applicable
state securities or Blue Sky laws), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses,
(iii) messenger, telephone and delivery expenses, (iv) Securities Act liability insurance, if the Company so desires such insurance, and (v) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred
in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. 

        5.  Indemnification

        (a)  Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result of a pledge or any failure to perform under a
margin call of Common Stock), investment advisors and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and
all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and reasonable attorneys' fees) and expenses (collectively,
"Losses"), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in the Registration Statement,
any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which
they were made) not misleading, except to the extent, but only to the extent, that (1) such untrue statements or omissions are based solely upon information regarding such Holder furnished in
writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or
supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose) or (2) in the case of an occurrence of an event of the type specified in
Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior
to the receipt by such Holder of the Advice contemplated in Section 6(d). The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the
Company is aware in connection with the transactions contemplated by this Agreement. 

        (b)  Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its
directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors, officers, agents or employees of such controlling Persons, to the 

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fullest extent permitted by applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon: (x) such Holder's failure to comply with the prospectus
delivery requirements of the Securities Act or (y) any untrue statement of a material fact contained in the Registration Statement, any Prospectus, or any form of prospectus, or in any
amendment or supplement thereto, or arising solely out of or based solely upon any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading
to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder to the Company specifically for inclusion in such
Registration Statement or such Prospectus or to the extent that (1) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such
Prospectus or such form of Prospectus or in any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by
such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the
Advice contemplated in Section 6(d). In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon
the sale of the Registrable Securities giving rise to such indemnification obligation. 

        (c)  Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to
indemnity hereunder (an "Indemnified Party"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the
"Indemnifying Party") in writing, and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably
satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice
shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party. 

        An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be
at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed
promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding
(including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to
exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the
Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld. No
Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any
Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding. 

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        All
fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a
manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten (10) Trading Days of written notice thereof to the Indemnifying Party (regardless of
whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may
require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification
hereunder). 

        (d)  Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by
reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a
result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement
or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable attorneys' or other
reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for
in this Section was available to such party in accordance with its terms. 

        The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro
rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by
such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation. 

        The
indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 

        6.
Miscellaneous

        (a)  Remedies. In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, each
Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific
performance of its rights under this Agreement. The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of
any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law
would be adequate. 

        (b)  No Piggyback on Registrations. Except as and to the extent specified in  Schedule 6(b) hereto, neither the Company nor any of its security holders (other than the
Holders in such 

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capacity pursuant hereto) may include securities of the Company in the Registration Statement other than the Registrable Securities, and the Company shall not after the date hereof enter into any
agreement providing any such right for inclusion of shares in the Registration Statement to any of its security holders. Except as and to the extent specified in  Schedule 6(b) hereto, the Company
has not previously entered into any agreement granting any registration rights with respect to any of its
securities to any Person which has not been fully satisfied. 

        (c)  Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the
Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement. 

        (d)  Discontinued Disposition. Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a
notice from the Company of the occurrence of any event of the kind described in Section 3(c), such Holder will forthwith discontinue disposition of such Registrable Securities under the
Registration Statement until such Holder's receipt of the copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the
"Advice") by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company may provide appropriate stop orders to enforce the
provisions of this paragraph. 

        (e)  Piggy-Back Registrations. If at any time during the Effectiveness Period there is not an effective
Registration Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own
account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to
equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, then
the Company shall send to each Holder written notice of such determination and, if within fifteen days after receipt of such notice, any such Holder shall so request in writing, the Company shall
include in such registration statement all or any part of such Registrable Securities such holder requests to be registered, subject to customary underwriter cutbacks applicable to all holders of
registration rights. 

        (f)    Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of the then
outstanding Registrable Securities. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of certain
Holders and that does not directly or indirectly affect the rights of other Holders may be given by Holders of at least a majority of the Registrable Securities to which such waiver or consent
relates; provided, however, that the provisions of this sentence may not be amended, modified, or
supplemented except in accordance with the provisions of the immediately preceding sentence. 

        (g)  Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone
number specified in this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (ii) the Trading Day after the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile telephone number specified in this Agreement later than 6:30 p.m. (New York City time) on any date and earlier than 11:59 p.m. 

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(New York City time) on such date, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the
party to whom such notice is required to be given. The address for such notices and communications shall be as follows: 

	If to the Company:	 	AVI BioPharma, Inc.

One S.W. Columbia, Suite 1105

Portland, Oregon 97258

Facsimile: (503) 227-0751
	

If to a Purchaser:	
 	

To the address set forth under such Purchaser name

on the signature pages hereto.
	

If to any other Person who is then the registered Holder:
	

 	
 	

To the address of such Holder as it appears in the

stock transfer books of the Company

or
such other address as may be designated in writing hereafter, in the same manner, by such Person. 

        (h)  Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign its rights or obligations hereunder without the prior written consent of each Holder. Each
Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement. 

        (i)    Execution and Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission, such signature
shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original
thereof. 

        (j)    Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all
Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or
its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan.
Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of the any of the Transaction Documents), and
hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Proceeding is improper. Each party
hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the 

9

 

transactions contemplated hereby. If either party shall commence a Proceeding to enforce any provisions of a Transaction Document, then the prevailing party in such Proceeding shall be reimbursed by
the other party for its reasonable attorneys fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding. 

        (k)  Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by law. 

        (l)    Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no
way be affected, impaired or invalidated, and the parties hereto shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

        (m)  Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof. 

        (n)  Independent Nature of Purchasers' Obligations and Rights. The obligations of each Purchaser hereunder are several and not
joint with the obligations of any other Purchaser hereunder, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser hereunder. Nothing contained
herein or in any other agreement or document delivered at any closing, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert with respect to such obligations or the transactions
contemplated by this Agreement. Each Purchaser shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES TO FOLLOW] 

10

 

        IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above. 

	 	 	AVI BIOPHARMA, INC.
	

 	
 	

By:	
 	

/s/  DENIS R. BURGER, PH.D.      

	 	 	Name: Denis R. Burger, Ph.D.

Title: Chairman & Chief Executive Officer

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES OF PURCHASERS TO FOLLOW] 

11

 

        IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above. 

	 	 	SMITHFIELD FIDUCIARY LLC
	

 	
 	

By:	
 	

/s/  ADAM J. CHILL      

	 	 	Name: Adam J. Chill

Title: Authorized Signatory
	

 	
 	

Address for Notice:
	

 	
 	

c/o Highbridge Capital Management, LLC

9 West 57th Street, 27th Floor

New York, NY 10019

Fax: 212-751-0755

Tel: 212-287-4720

Attention: Ari J. Storch / Adam J. Chill

12

 

	
 	
 	
SF CAPITAL PARTNERS LTD
	

 	

 	

By:	

 	

/s/  BRIAN H. DAVIDSON      

	

 	
 	

Name: Brian H. Davidson

Title: Authorized Signatory
	

 	
 	

Address for Notice:
	

 	
 	

SF Capital Partners Ltd.

Attention: Brian H. Davidson

1500 West Market Street, Suite 200

Mequon, Wisconsin 53092
	

 	
 	

Phone: (262) 241-1810

Facsimile: (262) 241-1888

13

 

	 	 	CASTLE CREEK HEALTHCARE

PARTNERS LLC
	

 	
 	
By:	
 	

CASTLE CREEK PARTNERS,

LLC, its Investment Manager
	

 	
 	

By:	
 	

/s/  THOMAS A. FREI      

	 	 	Name: Thomas A. Frei

Title: Managing Member
	

 	
 	

Address for Notice:
	

 	
 	

Castle Creek Healthcare Partners, LLC

c/o Castle Creek Partners, LLC

111 West Jackson Blvd, Suite 2020

Chicago, IL 60604

14

 

	 	 	CC LIFE SCIENCE, LTD.
	

 	
 	

By:	
 	

/s/  THOMAS A. FREI      

	 	 	Name: Thomas A. Frei

Title: Member
	

 	
 	

Address for Notice:
	

 	
 	

CC Life Science, Ltd.

c/o Castle Creek Life Science Partners, LLC

111 West Jackson Blvd, Suite 2020

Chicago, IL 60604

15

 

	 	 	SDS MERCHANT FUND, LP
	

 	
 	

By:	
 	

/s/  STEVE DERBY      

	 	 	Name: Steve Derby

Title: Managing Member
	

 	
 	

Address for Notice:
	

 	
 	

SDS Merchant Fund, LP

c/o SDS Capital Partners, LLC

1 Sound Shore Drive, Suite 202

Greenwich, CT 06830

16

 

	 	 	DMG LEGACY FUND LLC
	

 	
 	

By:	
 	

/s/  ANDREW WILDER      

	 	 	Name: Andrew Wilder

Title: Chief Financial Officer
	

 	
 	

Address for Notice:
	

 	
 	

DMG Legacy Fund LLC

c/o DMG Advisors LLC

One Sound Shore Drive, Ste 202

Greenwich, CT 06830

17

 

	 	 	DMG LEGACY INSTITUTIONAL FUND LLC
	

 	
 	

By:	
 	

/s/  ANDREW WILDER      

	 	 	Name: Andrew Wilder

Title: Chief Financial Officer
	

 	
 	

Address for Notice:
	

 	
 	

DMG Legacy Institutional Fund LLC

c/o DMG Advisors LLC

One Sound Shore Drive, Ste 202

Greenwich, CT 06830

18

 

	 	 	DMG LEGACY INTERNATIONAL LTD.
	

 	
 	

By:	
 	

/s/  ANDREW WILDER      

	 	 	Name: Andrew Wilder

Title: Chief Financial Officer
	

 	
 	

Address for Notice:
	

 	
 	

DMG Legacy International Ltd.

c/o DMG Advisors LLC

One Sound Shore Drive, Ste 202

Greenwich, CT 06830

19

 

	 	 	GRYPHON MASTER FUND, L.P.
	

 	
 	

By:	
 	

/s/  E.B. LYON, IV      

	 	 	Name: E.B. Lyon, IV

Title: Authorized Agent
	

 	
 	

Address for Notice:
	

 	
 	

500 Crescent Court, Suite 270

Dallas, TX 75201

20

 

	
 	
 	
QUANTICO PARTNERS, L.P.
	

 	

 	

By:	

 	

/s/  JEFFREY THORP      

	

 	
 	

Name: Jeffrey Thorp

Title: Managing Partner of

Langley Capital, LLC,

its General Partner
	

 	
 	

Address for Notice:
	

 	
 	

Quantico Partners, L.P.

c/o Langley Capital, LLC

535 Madison Avenue, 7th Floor

New York, NY 10022

(212) 850-7528 Telephone

(212) 850-7589 Facsimile
 JT@LangleyCapital.com

21

 

	 	 	BNY CAPITAL MARKETS, INC.
	

 	
 	

By:	
 	

/s/  WESLEY V. PRITCHETT      

	 	 	Name: Wesley V. Pritchett

Title: M.D.
	

 	
 	

Address for Notice:
	

 	
 	

Attn: Raymond Lang, Managing Director

BNY Capital Markets, Inc.

32 Old Slip, 15th Floor

New York, NY 10286

22

 

	 	 	UNITED CAPITAL MANAGEMENT, INC.
	

 	
 	

By:	
 	

/s/  JAMES A. LUSTIG      

	 	 	Name: James A. Lustig

Title: Proprietor
	

 	
 	

Address for Notice:
	

 	
 	

410 17th Street, Suite 1705

Denver, CO 80202

23

 

	 	 	On behalf of

THE TAIL WIND FUND LIMITED

Tail Wind Advisory & Management Ltd.
	

 	
 	
By:	
 	

/s/  DAVID CROOK      

	 	 	Name: David Crook

Title: Chief Executive Officer
	

 	
 	

Address for Notice:
	

 	
 	

David Crook, Esq.

Chief Executive Officer

Tail Wind Advisory & Management Ltd.

1st Floor, No. 1 Regent Street

London, SW1Y 4NS, UK

Tel: +44 20 7468 7691 Fax: 7657
	

 	
 	
Please copy all correspondence to:

Peter J. Weisman, P.C.

110 East 59th Street

New York, NY 10005

Tel: +212-418-4792 Fax: 212-317-8855
	

 	
 	
Please send the common shares a.s.a.p. directly to:

Bishop Rosen & Co.

Attn: Mr. D. Freedman

100 Broadway, 18th Floor

New York, NY 10006

Tel: +212-602-0054 Fax: +212-602-0697
	

 	
 	
Please send the warrants to:

The Tail Wind Fund, Ltd.

MecaPierson (Bahamas) Ltd.

Attn: Ngaire Rolle,

Windermere House, 404 East Bay St.,

PO Box SS 5539, Nassau, Bahamas

Tel: 242-393-8777 Fax: 242-393-9021

24

 

	 	 	JULES NORDLICHT
	

 	
 	

By:	
 	

/s/  JULES NORDLICHT      

	 	 	Name: Jules Nordlicht

Title:
	

 	
 	

Address for Notice:
	

 	
 	

255 W. Beech St

Long Beach, NY 11561

25

Annex A  

Plan of Distribution  

        The selling stockholders and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their
shares of common stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These sales may be at fixed or negotiated prices. The selling
stockholders may use any one or more of the following methods when selling shares: 

	•
	ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers;

	•
	block
trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to
facilitate the transaction;

	•
	purchases
by a broker-dealer as principal and resale by the broker-dealer for its account;

	•
	an
exchange distribution in accordance with the rules of the applicable exchange;

	•
	privately
negotiated transactions;

	•
	short
sales

	•
	broker-dealers
may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;

	•
	a
combination of any such methods of sale; and

	•
	any
other method permitted pursuant to applicable law. 

        The
selling stockholders may also sell shares under Rule 144 under the Securities Act, if available, rather than under this prospectus. 

        Broker-dealers
engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling
stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated. The selling stockholders do not expect these commissions and
discounts to exceed what is customary in the types of transactions involved. 

        The
selling stockholders may from time to time pledge or grant a security interest in some or all of the shares of common stock or Warrants owned by them and, if they default in the
performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time under this prospectus, or under an amendment to this
prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933 amending the list of selling stockholders to include the pledgee, transferee or other successors in
interest as selling stockholders under this prospectus. 

        The
selling stockholders also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus. 

        The
selling stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be "underwriters" within the meaning of the Securities Act in
connection with such sales. In
such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the
Securities Act. The selling stockholders have informed the Company that it does not have any agreement or understanding, directly or indirectly, with any person to distribute the Common Stock. 

        The
Company is required to pay all fees and expenses incident to the registration of the shares. The Company has agreed to indemnify the selling stockholders against certain losses,
claims, damages and liabilities, including liabilities under the Securities Act. 

QuickLinks

REGISTRATION RIGHTS AGREEMENT<Page>

                                  EXHIBIT 10.10
                              AMENDED AND RESTATED
                          SELLING SHAREHOLDER AGREEMENT

          THIS AMENDED AND RESTATED SELLING SHAREHOLDER AGREEMENT (this
"Agreement") is made and enter into on the effective date of 7th day of
February, 2002 by and among Paul A. Kruger, Randel T. Dunn, John F. Luther,
Billy Rhodes Trustee of Rhodes Family Trust, Mary L. Kelly, and Leland S.
Chaffin, Jr. (collectively, "Selling Shareholders" or singly, "Selling
Shareholder"), Judith H. Henkels ("Judith"), Mary L. Kelly ("Mary"), and Precis,
Inc., an Oklahoma corporation ("Precis").

                                    RECITALS

          1. The Selling Shareholders in the aggregate intend to offer for sale
and sell 2,500,000 shares of Precis common stock, $0.01 pare value per share
("Common Stock") through Stonegate Securities, Inc. ("Stonegate") pursuant to
registration under the Securities Act of 1933, as amended (the "1933 Act") (such
offer to sell and sale is referred to as the "Public Offering"). The 2,500,000
shares of Common Stock will be offered in two groups, the first to be 1,333,000
shares ("Primary Shares") and 1,167,000 shares ("Secondary Shares"). For
purposes of this Agreement, Primary Shares and Secondary Shares are collectively
referred to as the "Shares."

          2. Each Selling Shareholder intends to offer for sale pursuant to the
Public Offering the number of Primary Shares and Secondary Shares set forth
opposite each Selling Shareholder's name as follows:

<Table>
<Caption>
                                                                 NUMBER OF SHARES
                                                       -------------------------------------
                                                        PRIMARY     SECONDARY      TOTAL
SELLING SHAREHOLDER                                     SHARES       SHARES        SHARES
-------------------                                    --------- ------------- --------------
<S>                                                     <C>           <C>            <C>
Paul A. Kruger                                          467000        683000         115000
Randel T. Dunn                                          866000         34000         900000
John F. Luther                                              --        250000         250000
 Billy Rhodes Trustee of Rhodes Family Trust                --         50000          50000
Mary L. Kelly                                               --         50000          50000
Leland S. Chaffin, Jr.                                      --        100000         100000
</Table>

          3. Pursuant to the agreement amongst Precis, Stonegate, the Selling
Shareholders dated as of February 7, 2002 (the "Stonegate Agreement"), Judith
and, in her absence, Mary are appointed as the contact person for purposes of
determining those Selling Shareholders desiring to sell all or any portion of
their Primary Shares and, if applicable, Secondary Shares at the sale price
proposed by Stonegate or offered by the purchaser.

          4. Precis does not require any additional capital as of the date of
this agreement; however, the Board of Directors of Precis has concluded that it
is in the best interest of Precis and its non-affiliate shareholders to take
actions to increase the number of shares of Common Stock owned by non-affiliates
(ultimately to increase the "public float" of the Common Stock) in order to
establish and maintain a more orderly market of and broaden ownership of the
Common Stock and reduce to some extent the volatility of the Common Stock in the
market place, while avoiding any additional dilution to the current shareholders
of Precis.

          5. Each of the Selling Shareholders will constitute an "underwriter"
within the meaning of the 1933 Act and have the attendant liability.

          6. Each Selling Shareholder desires to be (i) indemnified by Precis
for any and all liabilities and claims arising from or attributable to the offer
and sale of the Shares and (ii) receive contributions from the other Selling
Shareholders for any and all liabilities, claims and expenses arising from or
attributable to the offer and sale of the Shares on a pro rata basis based upon
the sale proceeds that each Selling Shareholder receives pursuant to the sale of
the Shares and the Public Offering.

                                       -1-
<Page>

          NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements herein contained, and intending to be legally bound
hereby, Selling Shareholders and Precis hereby agree as follows:

          1. SELECTION OF REPRESENTATIVE. Selling Shareholders hereby appoint
and authorize Judith or in her absence, Mary, as their agent and representative
for all purposes under the Stonegate Agreement and for all purposes set forth
herein ("Representative").

          2. PROCEDURES FOR SALE OF SHARES. Pursuant to the Stonegate Agreement,
each offer to purchase Shares ("Purchase Offer") received by Stonegate will be
made to and through Representative.

          2.1 ESTABLISHMENT OF MINIMUM PER SHARE SALE PRICES. Upon execution of
     this Agreement, each Selling Shareholder shall provide to Representative in
     writing the number of Primary Shares and Secondary Shares the Selling
     Shareholder is willing to sell at a specific price per share ("Minimum Sale
     Price"). Each Selling Shareholder shall have the right to change the
     previously established Minimum Sale Price by giving Representative three
     days prior written notice.

          2.2 PURCHASE OFFER GREATER THAN MINIMUM SALE PRICE. In the event
     Stonegate notifies Representative of an offer to purchase Shares ("Purchase
     Offer") and the purchase price per share equals or exceeds the Minimum Sale
     Price, Representative is hereby authorized to sell the Selling
     Shareholder's pro rata portion of the Shares, giving priority to the sale
     of Primary Shares as set forth below, without any further consent or notice
     to the Selling Shareholder. Each Selling Shareholder shall take all
     necessary actions to effectuate any sale in accordance with the provisions
     of this Section 2.2 and the other provisions of this Agreement.

          2.3 PURCHASE OFFER LESS THAN MINIMUM SALE PRICE. In the event the
     Purchase Offer is at a per share price less than the Minimum Sale Price,
     Representative shall use her best efforts to immediately notify, either
     orally or in writing, the Selling Shareholder regarding the terms of the
     offer to purchase Shares, the price per Share, the amount of Primary Shares
     or, if applicable, Secondary Shares that the Selling Shareholder will be
     entitled to sell under the Purchase Offer. Notwithstanding any other
     provision contained in this Agreement, Paul A. Kruger and Randel T. Dunn
     shall first be entitled to sell their Primary Shares and Secondary Shares
     before any other Selling Shareholder. Each Selling Shareholder shall have
     the right and authority to accept or reject such Purchase Offer (in whole
     or in part). In the event a Selling Shareholder elects, either orally or in
     writing, not to sell Selling Shareholder's Primary Shares or, if
     applicable, Secondary Shares, Representative shall be authorized to
     allocate the Shares among Selling Shareholders, including Representative in
     her capacity as a Selling Shareholder, to be sold in connection with such
     Purchase Offer as the Representative determines, in Representative's sole
     and absolute discretion, however, giving first priority to those Selling
     Shareholders that elect to accept such Purchase Offer and that have not
     previously sold all of their Primary Shares until all of their Primary
     Shares have been sold. Although Representative shall use her best efforts
     to notify all of the other Selling Shareholders of any Purchase Offer
     pursuant to this Section 2.3, Representative shall not have any liability
     for failure to notify a Selling Shareholder of such Purchase Offer. The
     failure of a Selling Shareholder to affirmatively accept any offer to
     purchase Shares within 24 hours following Representative's notice of such
     Purchase Offer pursuant to this Section 2.3 shall constitute an election by
     such Selling Shareholder to not accept the Purchase Offer.

          2.4 PRO RATA SALE OF SHARES. Each Selling Shareholder shall have the
     right, but not the obligation, to sell a proportionate number of Primary
     Shares based upon the number of Primary Shares held by the Selling
     Shareholders at the time of the Purchase Offer is received by the
     Representative that have not been previously sold or committed to be sold
     by the Selling Shareholder. Notwithstanding any other provision contained
     in this Agreement, Paul A. Kruger and Randel T. Dunn shall first be
     entitled to sell their Primary Shares and Secondary Shares before any other
     Selling Shareholder. Except as otherwise provided herein, in the event all
     of the Primary Shares have been sold or have been committed to be sold by
     the Selling Shareholder, each Selling Shareholder shall have the right, but
     not the obligation, to sell a proportionate number of Second Shares based
     upon the number of Secondary Shares based upon the number of Secondary
     Shares held by the
                                       -2-
<Page>

     Selling Shareholders at the time of the Purchase Offer is received by the
     Representative that have not been previously sold or committed to be sold
     by the Selling Shareholders.

          2.4 EXPENSES OF PUBLIC OFFERING. Precis hereby agrees to bear all
     costs and expenses of the Public Offering, including without limitation all
     registration and filing fees, printing expenses, fees and disbursement of
     Precis' legal counsel, accounting and auditing fees and disbursement of
     Precis' independent accountants, stock transfer, and sales commissions and
     discounts, if any, associated with the sale of the Shares (including the
     costs and expenses of Stonegate under the Stonegate Agreement and the
     letter agreement dated January 31, 2002) (collectively, the "Offering
     Costs"). To the extent that any Selling Shareholder pays an item of the
     Offering Costs, the Selling Shareholder that paid such Offering Costs shall
     be entitled to reimbursement of such Offering Costs.

     3.  PRECIS INDEMNIFICATION. Precis shall indemnify and hold harmless each
Selling Shareholder (the "Indemnified Party") against any and all investigations
of, preparation for or defense of any pending or threatened liabilities, claims,
judgment, fines and amounts paid in settlement and expenses (including attorneys
fees) actually and reasonably incurred by the Indemnified Party (collectively
the "Loss, Claim or Expense") in connection with any claim or any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative ("Proceeding"), including any action by or in
the right of Precis, to which the Indemnified Party is, was or at any time
becomes a party, or is threatened to be made a party, by reason of the fact that
the Indemnified Party is, was or at any time participant in the sale and
distribution of the Shares as part of the Public Offering and by reason of any
misstatement or omissions to state a material fact by Precis. Precis further
agrees that the Indemnified Party shall not have any liability to Precis or its
affiliates, officers, directors, agents, employees, persons deemed to be in
control of Precis within the meaning of either Section 15 of the Securities Act
of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934, as
amended, or shareholders for any Losses, Claims or Expenses. Precis agrees that
the provisions of this Section 3shall apply (i) whether or not the Indemnified
Party is a formally named party to or the subject or target of any Proceeding
and (ii) in addition to any liability that Precis may otherwise have and shall
be binding upon and inure to the benefit of any successors, assigns, heirs and
personal representatives of Precis or an Indemnified Party.

          3.1 LIMITATIONS ON INDEMNITY. No indemnity pursuant to this Section 3
     shall be paid to the Indemnified Party (i) for the amount of such Loss,
     Claim or Expense for which the Indemnified Party is indemnified pursuant to
     any insurance purchased and maintained by Precis or (ii) on account of the
     Indemnified Party's conduct that is finally adjudged to have been knowingly
     fraudulent, deliberately dishonest or willful misconduct.

          3.2 CONTINUATION OF INDEMNIFY. The provisions of this Section 3 shall
     continue during the period that the Indemnified Party shall be subject to
     any possible Proceeding by reason of the fact that the Indemnified Party
     is, was or at any time a participant in the sale and distribution of the
     Shares as part of the Public Offering.

          3.3 NOTIFICATION AND DEFENSE OF CLAIM. Within 30 days after receipt by
     the Indemnified Party of notice of the commencement of any Proceeding in
     which the Indemnified Party has a right to indemnification pursuant to this
     Section 3, the Indemnified Party shall notify Precis; however, the omission
     of the Indemnified Party to timely notify Precis shall not relieve Precis
     from any liability that Precis may have to the Indemnified Party under this
     Section 3 or otherwise. With respect to any such action, suit or proceeding
     as to which the Indemnified Party notifies Precis of the commencement
     thereof

          (i) Precis will be entitled to participate therein at its own expense
     and

          (ii) Except as otherwise provided below, to the extent that Precis may
     wish, any other person similarly notified by the Indemnified Party will be
     entitled to assume defense thereof, with counsel satisfactory to the
     Indemnified Party. After notice from Precis of its election to assume the
     defense thereof, Precis will not be liable to the Indemnified Party under
     this Section for any additional legal or other expenses subsequently
     incurred by the Indemnified Party in connection with the defense thereof
     other than as otherwise provided below. The Indemnified Party shall have
     the right to employ its own counsel in such action, suit or

                                       -3-
<Page>

     proceeding; provided, however, that the fees and expenses of such counsel
     incurred after notice from Precis of the assumption of the defense thereof
     shall be at the expense of the Indemnifying Party, unless (a) the
     employment of counsel by the Indemnified Party has been authorized by
     Precis, (b) the Indemnified Party shall have reasonably concluded that
     there may be a conflict of interest between Precis and the Indemnified
     Party in the conduct of the defense of such action, or (C)) Precis shall
     not have employed counsel to assume the defense of such action, in each of
     which cases the fees and expense of counsel shall be at the expense of
     Precis. Precis shall not be entitled to assume the defense of any action,
     suit or proceeding brought by or on behalf of Precis or as to which the
     Indemnified Party shall have made the conclusion provided for in (b) above.
     Notwithstanding the foregoing, in no event shall Precis be obligated to
     reimburse the fees or expenses of more than one counsel for the Indemnified
     Party.

          (iii) Precis shall not be liable to indemnify the Indemnified Party
     under this Section 3 for any amount paid in settlement of any Losses,
     Claims or Expenses and related Proceeding effected without Precis' written
     consent. Precis shall not settle any Losses, Claims or Expenses and related
     Proceedings in any manner that would impose any obligation, penalty or
     limitation on the Indemnified Party without the Indemnified Party's written
     consent. Neither Precis nor the Indemnified Party will unreasonably
     withhold its consent to any proposed settlement.

          3.4 REPAYMENT OF EXPENSES. The Indemnified Party shall reimburse
     Precis for all reasonable expenses paid by Precis in defending any
     Proceeding against the Indemnified Party in the event and only to the
     extent that it shall be ultimately determined that the Indemnified Party is
     not entitled to be indemnified by Precis for such expenses under this
     Agreement.

          3.5 ENFORCEMENT. It is hereby acknowledged that the provisions of this
     Section 3 are contained in this Agreement to induce the Indemnified Party
     to participate in the Public Offering with the other Selling Shareholders
     and that the Indemnified Party's participation is, in part, in reliance
     upon the provisions of this Section 3. In the event the Indemnified Party
     is required to bring any action to enforce the Indemnified Party's right to
     collect moneys due under this Section 3 and is successful in such action,
     Precis shall reimburse the Indemnified Party for all of the Indemnified
     Party's attorneys fees and expenses in bringing and pursuing such action.

          3.6 JUDICIALLY IMPOSED LIMITATIONS. If for any reason the
     indemnification provisions of this Section 3 are judicially determined to
     be unavailable or insufficient to hold any Indemnified Party harmless, then
     Precis agrees to contribute to the Losses, Claims or Expenses for which
     indemnification is held unavailable in such proportion as is appropriate to
     reflect not only the relative benefits received by Precis and such
     Indemnified Party, but also relevant fault of each such person or entity,
     as well as any relevant equitable considerations.

     4.  SELLING SHAREHOLDER CONTRIBUTIONS. In recognition of the "underwriter"
status of each Selling Shareholder under the 1933 Act and the Public Offering is
the type of transaction that sometimes results in litigation, in the event
Precis fails to fully indemnify the Indemnified Parties or is prohibited from
indemnifying the Indemnified Parties with respect to any Loss, Claim or Expense
pursuant to Section 3 of this Agreement, each Selling Shareholder (the
"Contributing Shareholder") hereby agrees to contribute and hold harmless each
of the other Selling Shareholders (the "Benefitting Shareholder") against that
percent of any such Loss, Claim or Expenses determined by dividing the sale
proceeds received by the Contributing Shareholder from sale of Shares pursuant
to the Public Offering by the aggregate sum of all proceeds received by the
Selling Shareholders as s group from sale of Shares pursuant to the Public
Offering. The Contributing Shareholder agrees that the provisions of this
Section 4shall apply (i) whether or not the Benefitting Party is a formally
named party to or the subject or target of any Proceeding and (ii) in addition
to any liability that the Contributing Shareholder may otherwise have and shall
be binding upon and inure to the benefit of any successors, assigns, heirs and
personal representatives of the Contributing Shareholder or the Benefitting
Shareholder.

          4.1 LIMITATIONS ON INDEMNITY. No contribution pursuant to this Section
     4 shall be paid to the Benefitting Shareholder (i) for the amount of such
     Loss, Claim or Expense for which the Indemnified Party is

                                       -4-
<Page>

     indemnified pursuant to any policy of insurance or (ii) on account of the
     Benefitting Shareholder's conduct that is finally adjudged to have been
     knowingly fraudulent, deliberately dishonest or willful misconduct.

          4.2 CONTINUATION OF INDEMNIFY. The provisions of this Section 4 shall
     continue during the period that the Benefitting Shareholder shall be
     subject to any possible Proceeding by reason of the fact that the
     Indemnified Party is, was or at any time a participant in the sale and
     distribution of the Shares as part of the Public Offering.

          4.3 NOTIFICATION AND DEFENSE OF CLAIM. Within 30 days after receipt by
     the Benefitting Shareholder of notice of the commencement of any Proceeding
     in which the Benefitting Shareholder has a possible right to contribution
     pursuant to this Section 4, the Benefitting Shareholder shall notify the
     Contributing Shareholder; however, the omission of the Benefitting
     Shareholder to timely notify the Contributing Shareholder shall not relieve
     the Contributing Shareholder from any liability that the Contributing
     Shareholder may have to the Benefitting Shareholder under this Section 4 or
     otherwise. The Benefitting Shareholder shall have the right to employ its
     own counsel in such action, suit or proceeding; provided, however, in no
     event shall the Contributing Shareholder be obligated to reimburse the fees
     or expenses of more than one counsel for the Benefitting Shareholder. The
     Contributing Shareholder shall not be liable for contribution to the
     Indemnified Party under this Section 4 for any amount paid in settlement of
     any Losses, Claims or Expenses and related Proceeding effected without the
     Contributing Shareholder's written consent. The Contributing Shareholder
     will not unreasonably withhold its consent to any proposed settlement.

          4.4 REPAYMENT OF EXPENSES. The Benefitting Shareholder shall reimburse
     the Contributing Shareholder for all reasonable expenses paid by
     Contributing Shareholder, if any, in defending any Proceeding against the
     Benefitting Shareholder in the event and only to the extent that it shall
     be ultimately determined that the Benefitting Shareholder is not entitled
     to receive contribution for such expenses under this Agreement.

          4.5 ENFORCEMENT. It is hereby acknowledged that the provisions of this
     Section 4 are contained in this Agreement to induce the Benefitting
     Shareholder to participate in the Public Offering with the other Selling
     Shareholders and that the Indemnified Party's participation is, in part, in
     reliance upon the provisions of this Section 4. In the event the
     Indemnified Party is required to bring any action to enforce the
     Benefitting Shareholder's right to collect moneys due under this Section 4
     and is successful in such action, the Contributing Shareholder shall
     reimburse the Benefitting Shareholder for all of the Benefitting
     Shareholder's attorneys fees and expenses in bringing and pursuing such
     action.

     5. NOTICES. All notices and other communications given or made pursuant
hereto shall be in writing and shall be deemed to have been duly given or made
if and when delivered personally or by overnight courier to the parties to this
Agreement at addresses appearing below the signature of each such party or sent
by electronic transmission, with confirmation received, to the facsimile numbers
also specified below the signature of each such party (or at such other address,
facsimile or telephone number as shall be specified by like notice).

     6. AMENDMENT. This Agreement may be amended by the Selling Shareholders and
Precis at any time only by an instrument in writing signed by the parties
hereto.

     7. WAIVER. Any party hereto may with respect to any other party hereto
(a) extend the time for the performance of any of the obligations or other acts
or (b) waive compliance with any of the agreements or conditions contained in
this Agreement. Any such extension or waiver shall be valid if set forth in an
instrument in writing signed by the party or parties to be bound thereby. For
purposes of this Agreement, time shall be of the essence.

     8. HEADINGS; CONSTRUCTION. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. In this Agreement (a) words denoting the
singular include the plural and vice versa, (b) "it" or "its" or words denoting
any gender include all genders, (c)) the word "including" shall mean "including
without limitation," whether or not expressed, (d) any reference to a statute
shall mean the statute and any regulations thereunder in force as of the date of
this Agreement, unless

                                       -5-
<Page>

otherwise expressly provided, (e) any reference herein to a Section refers to a
Section of this Agreement, unless otherwise stated, (f) when calculating the
period of time within or following which any act is to be done or steps taken,
the date which is the reference day in calculating such period shall be excluded
and (g) any reference to a party's "best efforts" or "reasonable efforts" shall
not include any obligation of such party to pay, or guarantee the payment of,
money or other consideration to any third party or to agree to the imposition on
such party of any condition reasonably considered by such party to be materially
burdensome to such party.

     9. SEVERABILITY. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement shall nevertheless
remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner adverse to
any party. Upon such determination that any term or other provision is invalid,
illegal or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in an acceptable manner to the end that
transactions contemplated hereby are fulfilled to the extent reasonably
possible.

     10. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement and
supersedes all prior agreements and undertakings, both written and oral, among
the parties, or any of them, with respect to the subject matter hereof, except
as otherwise expressly provided herein.

     11. ASSIGNMENT. This Agreement shall not be assigned by operation of law or
otherwise.

     12. PARTIES IN INTEREST. This Agreement shall be binding upon and inure
solely to the benefit of each party hereto, and nothing in this Agreement,
express or implied, is intended to or shall confer upon any other person any
right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement, including, without limitation, by way of subrogation, other than
Sections 3 and 4 (which is intended to be for the benefit of the Indemnified
Party or Benefitting Shareholder and may be enforced by such Indemnified Party
or Benefitting Shareholder ).

     13. FAILURE OR INDULGENCE NOT WAIVER; REMEDIES CUMULATIVE. No failure or
delay on the part of any party hereto in the exercise of any right hereunder
shall impair such right or be construed to be a waiver of, or acquiescence in,
any breach of any covenant or agreement herein, nor shall any single or partial
exercise of any such right preclude other or further exercise thereof or of any
other right. All rights and remedies existing under this Agreement are
cumulative to, and not exclusive of, any rights or remedies otherwise available.

     14. GOVERNING LAW. This Agreement shall be governed by, and construed in
accordance with, the internal laws of the State of Oklahoma applicable to
contracts executed and fully performed within the State of Oklahoma.

     15. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, and by the different parties hereto in separate counterparts, each
of which when executed shall be deemed to be an original but all of which taken
together shall constitute one and the same agreement.

     16. WAIVER OF JURY TRIAL. EACH OF THE SELLING SHAREHOLDERS AND PRECIS
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHTS TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON
CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OF THE TRANSACTIONS CONTEMPLATED HEREBY.

     17. JURISDICTION; SERVICE OF PROCESS. Any action or proceeding seeking to
enforce any provision of, or based on any right arising out of, this Agreement
may be brought against any of the parties in the courts of the State of
Oklahoma, County of Cleveland or, the State of Texas, County of Tarrant, the
United States District Court for the Western District of Oklahoma or the United
States District Court for the Northern District of Texas, and each of the
parties consents to the jurisdiction of such courts (and of the appropriate
appellate courts) in any such action or proceeding and waives any objection to
venue laid therein.

                                       -6-
<Page>

                                       -7-
<Page>

     IN WITNESS WHEREOF, the Selling Shareholders and Precis have caused this
Agreement to be executed as of the date first written above and with respect to
Precis by its duly authorized officers and with respect to Rhodes Family Trust
by its duly authorized trustee.

       "Selling Shareholders
                                                   /s/ Paul A. Kruger
                                                   -----------------------------
                                                   Paul A. Kruger
                                          2500 South McGee Drive, Suite 141
                                          Norman, Oklahoma 73072

                                          /s/ Randel T. Dunn
                                          --------------------------------------
                                          Randel T. Dunn
                                          Dunn & Stone
                                          4900 Richmond, Suite 202
                                          Oklahoma City, Oklahoma 73118

                                          /s/ John F. Luther
                                          --------------------------------------
                                          John F. Luther
                                          2040 North Highway 360
                                          Grand Prairie, Texas 75050

                                          Rhodes Family Trust

                                          By: /s/ Billy Rhodes
                                              ----------------------------------
                                          Billy Rhodes, Trustee
                                          Mr. Bobby Rhodes
                                          2040 North Highway 360
                                          Grand Prairie, Texas 75050

                                          /s/ Mary L. Kelly
                                          --------------------------------------
                                          Mary L. Kelly
                                          2040 North Highway 360
                                          Grand Prairie, Texas 75050

                                          /s/ Leland S. Chaffin, Jr.
                                          --------------------------------------
                                          Leland S. Chaffin, Jr.
                                          2040 North Highway 360
                                          Grand Prairie, Texas 75050

       "Representatives"

       "Judith"                             /s/ Judith H. Henkels
                                            ------------------------------------
                                          Judith H. Henkels
                                          2040 North Highway 360
                                          Grand Prairie, Texas 75050
       "Mary"
                                          /s/ Mary L. Kelly
                                          --------------------------------------
                                          Mary L. Kelly
                                          2040 North Highway 360
                                          Grand Prairie, Texas 75050

                                       -8-
<Page>

       "Precis"                             PRECIS, INC.

                                          By /s/ Judith H. Henkels
                                            ------------------------------------
                                                 Judith H. Henkels, Chief
                                                    Executive Officer
                                                 2040 North Highway 360
                                                 Grand Prairie, Texas 75050

                                       -9-

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