TARGETED GENETICS CORP /WA/
<DOCUMENT>
<TYPE>EX-10.03
<SEQUENCE>5
<FILENAME>ex10_03.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>



<!-- MARKER FORMAT-SHEET="Head Right" FSL="Default" -->
<A NAME=A002></A>
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Exhibit 10.03</B> </FONT> </P>
<BR>


<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->
<A NAME=A003></A>
<P ALIGN=center>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Amendment to Funding Agreement</B> </FONT> </P>
<BR>


<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Amendment to the Funding Agreement (the &#147;Funding Agreement&#148;) dated August 8,
2003, between Targeted Genetics Corporation, a Washington corporation
(&#147;Targeted&#148;), and Biogen, Inc., a Massachusetts corporation (&#147;Biogen&#148;)
is made as of July 14, 2003 by and between Targeted and Biogen. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
parties hereby agree to delete the first sentence of Section 3.2.1(a) of the Funding
Agreement and replace it with the following sentence: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Subject
to Section 3.2.2 of this Agreement, at any time and from time to time before September 15,
2003, at the election of Targeted in its sole discretion (the &#147;<U>Put</U>
<U>Option</U>&#148;) and upon its written request (the &#147;<U>Put</U>
<U>Request</U>&#148;), Biogen shall subscribe for and purchase (a &#147;<U>Share</U>
<U>Purchase</U>&#148;) a number of shares of Common Stock having an aggregate fair market
value less than or equal to the Remaining Value (as defined in subsection (b) of this
Section 3.2.1) at the time of such Put Request, at the price and on the terms and
conditions set forth in this Article3.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
other terms and provisions of the Funding Agreement shall remain unchanged. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, Targeted and Biogen have caused this Amendment to be duly executed as of
the date first above written. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<A NAME=A004></A>
<P ALIGN=LEFT>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">TARGETED GENETICS CORPORATION <BR>
<BR>
By:&nbsp;&nbsp;<U>/s/ H. Stewart Parker</U><BR>
Name:&nbsp;&nbsp;<U>H. Stewart Parker</U><BR>
Title:&nbsp;&nbsp;<U>President and CEO</U> </FONT> </P>



<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<A NAME=A006></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">BIOGEN, INC.<BR>
<BR>
By:&nbsp;&nbsp;<U>/s/ John W. Palmer</U><BR>
Name:&nbsp;&nbsp;<U>John W. Palmer</U><BR>
Title:&nbsp;&nbsp;<U>Sr. VP. Corporate Development</U> </FONT> </P>
<BR><BR>






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 25; page: 25" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>

<BR><BR>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
