Item 1.01. Entry into a Material Definitive Agreement

On July 20, 2009, Targeted Genetics Corporation (the "Company") and Ironwood Apartments, Inc. ("Landlord") entered into an Eighth Amendment and Conditional Termination of Lease (the "Amendment"). The Amendment amends the Lease Agreement between the Company and Landlord dated November 20, 1992, as amended (the "Lease"), as follows:

- The Amendment reduces the amount of rent due for the months of June, July and August 2009; and

- The Amendment gives the Company the right, at its election, to:

(i) terminate the Lease effective August 31, 2009, releasing the Company from up to approximately $4 million in estimated payment obligations and all other liabilities under the Lease, conditioned on paying Landlord a termination fee of $45,000 and having paid the reduced rent for June, July and August 2009; or

(ii) continue the Lease in effect, conditioned on providing notification to Landlord by August 15, 2009, paying $45,000 in additional rent for June, July and August 2009 and, upon written request by Landlord on or before August 31, 2009, providing Landlord with reasonable assurances of the Company's ability or the ability of a potential assignee to perform the Company's ongoing obligations under the Lease (which assurances may include, without limitation, having cash and cash equivalents sufficient to support the Company's planned operations for 12 months). If the Company cannot provide such reasonable assurances upon Landlord's timely request, then Landlord has the right to terminate the Lease effective October 31, 2009. The Lease covers 38,000 square feet in the facility the Company uses for its headquarters offices and primary research and development activities and, unless earlier terminated under its terms (as amended), will expire on April 1, 2014.

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