Registration Rights Agreement



 EXHIBIT 10.2 
 REGISTRATION RIGHTS AGREEMENT 
 REGISTRATION RIGHTS AGREEMENT (this “AGREEMENT”), dated as
of March 30, 2007, by and between AVICENA GROUP, INC., a Delaware corporation (the “COMPANY”), and each buyer identified on the signature pages hereto (collectively, the “BUYERS” and each individually, the
“BUYER”). 
 WHEREAS: 
 A. In connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the “SECURITIES PURCHASE AGREEMENT”), the Company has agreed, upon the terms and subject to the conditions contained
therein, to issue and sell to the Buyer the following (as each capitalized term not otherwise defined herein shall have the meaning ascribed to it in the Securities Purchase Agreement): 
 (i) Series B Preferred Stock of the Company (the “PREFERRED STOCK”) issued pursuant to the Securities Purchase Agreement and the Certificate of
Designation of Rights and Preferences of Series B Preferred Stock of Avicena Group, Inc. (the “Certificate of Designation”), and 
 (ii) Warrants in the amount described in the Securities Purchase Agreement, 
 where the Preferred Stock is convertible into shares of the
Company’s common stock, par value $0.001 per share (the “COMMON STOCK”), upon the terms and subject to the limitations and conditions set forth in the Certificate of Designation and where each of the Warrants is exercisable
into shares of the Company’s common stock, par value $0.001 per share, each upon the terms and conditions and subject to the limitations and conditions set forth in the Warrants, all subject to the terms and conditions of the Securities
Purchase Agreement; and 
 B. To induce the Buyer to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the “1933 ACT”), and applicable state securities laws; 
 NOW, THEREFORE, In consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Buyer hereby agree as follows: 
 1. DEFINITIONS. 
 a. As used in this Agreement, the following terms shall have the following meanings: 
 (i) “BUYER” means the purchaser of Preferred Stock and Warrants pursuant to the Securities Purchase Agreement specified on the signature page
hereof, and any transferee or assignee who agrees to become bound by the provisions of this Agreement in accordance with Section 9 hereof. 
  

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 (ii) “FILING DEADLINE,” for the initial Registration Statement required to be filed hereunder,
shall mean June 23, 2007. 
 (iii) “REGISTRATION DEADLINE” shall mean the earlier of (i) the date that is ninety
(90) days after the date that the initial Registration Statement is actually filed or (ii) the date that is ninety (90) days after the Filing Deadline. 
 (iv) “WARRANTS” means the warrants issued by the Company in conjunction with the Preferred Stock issued by the Company. 
 (v) “REGISTER,” “REGISTERED,” and “REGISTRATION” refer to a registration effected by preparing and filing a Registration Statement or Statements in compliance with the 1933 Act and
pursuant to Rule 415 under the 1933 Act or any successor rule providing for offering securities on a continuous basis (“RULE 415”), and the declaration or ordering of effectiveness of such Registration Statement by the United States
Securities and Exchange Commission (the “SEC”). 
 (vi) “REGISTRABLE SECURITIES,” for a given Registration, means
(a) the shares of Common Stock (the “CONVERSION SHARES”) issued or issuable upon full conversion of the Preferred Stock or otherwise pursuant to the Certificate of Designation for which such Registration is being effected (including,
without limitation, any shares issued or issuable as “Payment Shares” or otherwise pursuant to the Securities Purchase Agreement), (b) any shares of Common Stock (the “WARRANT SHARES”) issued or issuable upon exercise of or
otherwise pursuant to the Warrant(s), and (c) any shares of capital stock issued or issuable as a dividend on or in exchange for or otherwise with respect to any of the foregoing, (d) any additional shares of Common Stock issuable in
connection with any anti-dilution provisions in the Certificate of Designation or the Warrants (in each case, without giving effect to any limitations on conversion set forth in the Certificate of Designation or limitations on exercise set forth in
the Warrant), and (e) any other shares of common stock issued pursuant to the terms of the Securities Purchase Agreement, the Certificate of Designation, the Warrants, this Registration Rights Agreement or any other Transaction Document (as
defined in the Securities Purchase Agreement), and (f) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing. 
 (vii) “REGISTRATION STATEMENT(S)” means a registration statement(s) of the Company under the 1933 Act. 
 b. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement.

  

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 2. REGISTRATION. 
 a. MANDATORY REGISTRATION. Following the Closing of any Preferred Stock pursuant to the Securities Purchase Agreement and the Certificate of Designation, the Company shall prepare, and, on or prior to the
applicable Filing Deadline (as defined above) file with the SEC a Registration Statement (the “Mandatory Registration Statement”) on Form S-3 or Form SB-2 (or, if Form S-3 and Form SB-2 are not then available, on such form of Registration
Statement as is then available to effect a registration of the Registrable Securities, subject to the consent of the Buyer, which consent will not be unreasonably withheld) covering the resale of the Registrable Securities which Registration
Statement, to the extent allowable under the 1933 Act and the rules and regulations promulgated thereunder (including Rule 416), shall state that such Registration Statement also covers such indeterminate number of additional shares of Common Stock
as may become issuable upon conversion of or otherwise pursuant to the Certificate of Designation and exercise of or otherwise pursuant to the Warrants to prevent dilution resulting from stock splits, stock dividends or similar transactions. The
number of shares of Common Stock initially included in such Registration Statement shall be no less than one and one-half (1.5) times the aggregate number of Conversion Shares that are then issuable upon conversion of the Preferred Stock or
otherwise pursuant to the Certificate of Designation (based on the Conversion Price [as defined in the Certificate of Designation] then in effect) plus the aggregate number of Warrant Shares that are then issuable upon exercise of or otherwise
pursuant to the Warrants, without regard to any limitation on the Buyer’s ability to convert the Preferred Stock or exercise the Warrants. The Company acknowledges that the number of shares initially included in each Registration Statement
represents a good faith estimate of the maximum number of shares issuable upon conversion of the Preferred Stock or otherwise pursuant to the Certificate of Designation and exercise of or otherwise pursuant to the Warrants and shall be amended if
not sufficient. Each Registration Statement (and each amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided to (and subject to the approval of) the Buyer and its counsel prior to its filing or
other submission. The Company may include in the Mandatory Registration Statement (and any amendments and supplements thereto) the shares of Common Stock issuable upon the conversion of the Series A Preferred Stock and upon exercise of the warrants
issued to the holders of Series A Preferred Stock or their assignees, the shares of Common Stock issuable upon conversion of preferred stock issued as a Preferred Stock Lock-Up Exception (as defined in the Securities Purchase Agreement) and upon
exercise of any warrants issued to the holders of such preferred stock or their assignees, and the shares of Common Stock referenced in SCHEDULE 3(c-2)(ii). (b), (c) and (e) of the Securities Purchase Agreement. 
 b. PIGGY-BACK REGISTRATIONS. If at any time prior to the expiration of the Registration Period (as hereinafter defined) the Company shall
determine to file with the SEC a Registration Statement relating to an offering for its own account or the account of others under the 1933 Act of any of its equity securities (other than on Form S-4 or Form S-8 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), the Company shall send to Buyer written notice of such
determination and, if within fifteen (15) days after the effective date of such notice, the Buyer shall so request in writing, the Company shall include in such Registration Statement all or any part of the 

  

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Registrable Securities the Buyer requests to be registered, except that if, in connection with any underwritten public offering for the account of the
Company, the managing underwriter(s) thereof shall impose a limitation on the number of shares of Common Stock which may be included in the Registration Statement because, in such underwriter(s)’ judgment, marketing or other factors dictate
such limitation is necessary to facilitate public distribution, then the Company shall be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect to which the Buyer has requested
inclusion hereunder as the underwriter shall permit; 
 PROVIDED, HOWEVER, that the Company shall not exclude any Registrable
Securities unless the Company has first excluded all outstanding securities, the holders of which are not entitled by contract to inclusion of such securities in such Registration Statement or are not entitled to pro rata inclusion with the
Registrable Securities; and 
 PROVIDED, FURTHER, HOWEVER, that, after giving effect to the immediately preceding proviso, any
exclusion of Registrable Securities shall be made pro rata with holders of other securities having the contractual right to include such securities in the Registration Statement other than holders of securities entitled to inclusion of their
securities in such Registration Statement by reason of demand registration rights. No right to registration of Registrable Securities under this Section 2(b) shall be construed to limit any registration required under Section 2(a) hereof.
If an offering in connection with which the Buyer is entitled to registration under this Section 2(d) is an underwritten offering, then the Buyer shall, unless otherwise agreed by the Company, offer and sell such Registrable Securities in an
underwritten offering using the same underwriter or underwriters and, subject to the provisions of this Agreement, on the same terms and conditions as other shares of Common Stock included in such underwritten offering. Notwithstanding anything to
the contrary set forth herein, the registration rights of the Buyer pursuant to this Section 2(b) shall only be available in the event the Company fails to timely file, obtain effectiveness or maintain effectiveness of any Registration
Statement to be filed pursuant to Section 2(a) in accordance with the terms of this Agreement. 
 3. OBLIGATIONS OF THE COMPANY.
In connection with the registration of the Registrable Securities, the Company shall have the following obligations: 
 a. The Company shall
prepare promptly, and file with the SEC as soon as practicable after the date of the Closing under the Securities Purchase Agreement (the “CLOSING DATE”) (but no later than the Filing Deadline), Registration Statements with respect to the
number of Registrable Securities provided in Section 2(a), and thereafter use its best efforts to cause each such Registration Statement relating to Registrable Securities to become effective as soon as possible after such filing, but in any
event shall cause each such Registration Statement relating to Registrable Securities to become effective no later than the Registration Deadline, and shall keep the Registration Statement current and effective pursuant to Rule 415 at all times
until such date as is the earlier of (i) the date on which all of the Registrable Securities for such Registration Statement have been sold and (ii) the date on which all of the Registrable Securities for such Registration Statement (in
the opinion of counsel to the Buyer) may be immediately sold to the public without registration or restriction (including without limitation as to volume by each holder thereof) under the 1933 Act (the “REGISTRATION PERIOD”), which 

  

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Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any 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 not misleading. 
 b. The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to each Registration Statements and the prospectus used in connection with the Registration Statements as may be
necessary to keep the Registration Statements current and effective at all times during the Registration Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the
Company covered by the Registration Statements until such time as all of such Registrable Securities have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in the Registration
Statements. In the event that on any Trading Day (as defined in the Certificate of Designation) (the “REGISTRATION TRIGGER DATE”) the number of shares available under a Registration Statement filed pursuant to this Agreement is
insufficient to cover all of the Registrable Securities issued or issuable upon conversion of the Certificate of Designation or otherwise pursuant to the Certificate of Designation (based on the Conversion Price [as defined in the Certificate of
Designation] then in effect), exercise of or otherwise pursuant to the Warrants, and otherwise issuable pursuant to the Transaction Documents, in each case without giving effect to any limitations on the Buyer’ ability to convert the Preferred
Stock, exercise the Warrants or otherwise receive shares of Common Stock pursuant to the Transaction Documents, the Company shall amend the Registration Statement, or file a new Registration Statement (on the short form available therefore, if
applicable), or both, so as to cover one and one-half (1.5) times the total number of Registrable Securities so issued or issuable (without giving effect to any limitations on conversion contained in the Certificate of Designation, limitations
on exercise contained in the Warrants or limitations on conversion or exercise or other payment of shares contained in the Securities Purchase Agreement) as of the Registration Trigger Date, in each case, as soon as practicable, but in any event
within twenty (20) days after the Registration Trigger Date (based on the Conversion Prices of the Preferred Stock, the Exercise Prices of the Warrants, and other relevant factors on which the Company reasonably elects to rely). The Company
shall use its best efforts to cause such amendment and/or new Registration Statement to become effective as soon as practicable following the filing thereof, but in any event the Company shall cause such amendment and/or new Registration Statement
to become effective within sixty (60) days of the Registration Trigger Date or as promptly as practicable in the event the Company is required to increase its authorized shares. 
 c. The Company shall furnish to the Buyer and its legal counsel (i) promptly after the same is prepared and publicly distributed, filed with the
SEC, or received by the Company, one copy of each Registration Statement and any amendment thereto, each preliminary prospectus and prospectus and each amendment or supplement thereto, and, in the case of the Registration Statement referred to in
Section 2(a), each letter written by or on behalf of the Company to the SEC or the staff of the SEC, and each item of correspondence from the SEC or the staff of the SEC, in each case relating to such Registration Statement (other than any
portion of any thereof which contains information for which the Company has sought confidential treatment), and (ii) such number of copies of a prospectus, including a preliminary prospectus, 

  

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and all amendments and supplements thereto and such other documents as the Buyer may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by the Buyer. The Company will immediately notify the Buyer by facsimile of the effectiveness of each Registration Statement or any post-effective amendment. The Company will promptly respond to any and all comments
received from the SEC, with a view towards causing each Registration Statement or any amendment thereto to be declared effective by the SEC as soon as practicable and shall file an acceleration request as soon as practicable, but no later than three
(3) business days (the “ACCELERATION REQUEST DEADLINE”), following the resolution or clearance of all SEC comments or, if applicable, following notification by the SEC that any such Registration Statement or any amendment thereto will
not be subject to review. 
 d. The Company shall use reasonable efforts to (i) register and qualify the Registrable Securities covered
by the Registration Statements under such other securities or “blue sky” laws of such jurisdictions in the United States as the Buyer shall reasonably request, (ii) prepare and file in those jurisdictions such amendments (including
post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such
registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; 
 e. As promptly as practicable after becoming aware of such event, the Company shall notify the Buyer of the happening of any event, of which the Company
has knowledge, as a result of which the prospectus included in any Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the
statements therein not misleading, and use its best efforts promptly to prepare a supplement or amendment to any Registration Statement to correct such untrue statement or omission, and deliver such number of copies of such supplement or amendment
to the Buyer as the Buyer may reasonably request; provided that, for not more than twenty (20) consecutive days (or a total of not more than sixty (60) days in any twelve (12) month period), the Company may delay the disclosure of
material non-public information concerning the Company (as well as prospectus or Registration Statement updating) the disclosure of which at the time is not, in the good faith opinion of the Company, in the best interests of the Company (an
“ALLOWED DELAY”); provided, further, that the Company shall promptly (i) notify the Buyer in writing of the existence of (but in no event, without the prior written consent of the Buyer, shall the Company disclose to the Buyer any of
the facts or circumstances regarding) material non-public information giving rise to an Allowed Delay and (ii) advise the Buyer in writing to cease all sales under such Registration Statement until the end of the Allowed Delay, provided the
above actions are consistent with the requirements of the 1933 Act and/or 1934 Act or other applicable law. Upon expiration of the Allowed Delay, the Company shall again be bound by the first sentence of this Section 3(e) with respect to the
information giving rise thereto. Nothing herein relieves the obligations set forth in the Certificate of Designation or the Warrants relative to Failure Payments or payments of the Default Amount pursuant to Events of Default. 
  

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 f. The Company shall use its best efforts to prevent the issuance of any stop order or other suspension
of effectiveness of any Registration Statement, and, if such an order is issued, to obtain the withdrawal of such order at the earliest possible moment and to notify the Buyer who holds Registrable Securities being sold (or, in the event of an
underwritten offering, the managing underwriters) of the issuance of such order and the resolution thereof. 
 g. The Company shall permit a
single firm of counsel designated by the Buyer to review such Registration Statement and all amendments and supplements thereto (as well as all requests for acceleration or effectiveness thereof), at Buyer’s own cost, a reasonable period of
time prior to their filing with the SEC (not less than three (3) business days but not more then five (5) business days) and not file any document in a form to which such counsel reasonably objects and will not request acceleration of such
Registration Statement without prior notice to such counsel. 
 h. The Company shall hold in confidence and not make any disclosure of
information concerning the Buyer provided to the Company unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to avoid or correct a
misstatement or omission in any Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other order from a court or governmental body of competent jurisdiction, or (iv) such information has been
made generally available to the public other than by disclosure in violation of this or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning the Buyer is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt notice to the Buyer prior to making such disclosure, and allow the Buyer, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a
protective order for, such information. 
 i. The Company shall use its best efforts to cause all the Registrable Securities covered by the
Registration Statement to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such
exchange, and, if listed on a national exchange, to arrange for at least two market makers to register with the National Association of Securities Dealers, Inc. (“NASD”) as such with respect to such Registrable Securities. 
 j. The Company shall provide a transfer agent and registrar, which may be a single entity, for the Registrable Securities not later than the effective
date of the Registration Statement. 
 k. The Company shall cooperate with the Buyer who holds Registrable Securities being offered and the
managing underwriter or underwriters, if any, to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legends) representing Registrable Securities to be offered pursuant to such Registration Statement and
enable such certificates to be in such denominations or amounts, as the case may be, as the managing underwriter or underwriters, if any, or the Buyer may reasonably request and registered in such names as the managing underwriter or underwriters,
if any, or the Buyer may request, and, 

  

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within three (3) business days after a Registration Statement which includes Registrable Securities is ordered effective by the SEC, the Company shall
deliver, and shall cause legal counsel selected by the Company to deliver, to the transfer agent for the Registrable Securities (with copies to the Buyer) an appropriate instruction and an opinion of such counsel in the form required by the transfer
agent in order to issue the Registrable Securities free of restrictive legends. 
 l. At the request of the holders of a majority-in-interest
of the Registrable Securities, the Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration Statement and any prospectus used in connection with the Registration Statement as
may be necessary in order to change the plan of distribution set forth in such Registration Statement. 
 m. The Company shall not, and shall
not agree to, allow the holders of any securities of the Company to include any of their securities in any Registration Statement under Section 2(a) hereof or any amendment or supplement thereto under Section 3(b) hereof without the
consent of the Required Holders (as defined in the Certificate of Designation), except for securities which have contractual piggyback registration rights in effect at the time of the Initial Closing (as defined in the Securities Purchase Agreement)
and except with respect to the shares of Common Stock underlying the Series A Preferred Stock and the Warrants issued to the holders of Series A Preferred Stock or their assignees. In addition, the Company shall not offer any securities for its own
account or the account of others in any Registration Statement under Section 2(a) hereof or any amendment or supplement thereto under Section 3(b) hereof without the consent of the Required Holders. 
 n. The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Buyer of Registrable Securities pursuant
to a Registration Statement. 
 o. The Company shall comply with all applicable laws related to a Registration Statement and offering and
sale of securities and all applicable rules and regulations of governmental authorities in connection therewith (including without limitation the 1933 Act and the 1934 Act and the rules and regulations promulgated by the SEC). 
 p. Further Registration Statements. Except for a registration statement filed on behalf of the Buyer pursuant to Section 2 of this
Agreement, and except for (1) an underwritten public offering, (2) a registration statement covering the shares of Common Stock underlying the shares of Series A Preferred Stock and the warrants issued to the holders of the Series A
Preferred Stock or their assignees, (3) the current Registration Statement on Form SB-2, and (4) any registration statements covering the shares of Common Stock issued as Common Stock Lock-Up Exceptions and shares of Common Stock
underlying the Preferred Stock Lock-Up Exceptions and any warrants issued in conjunction therewith, the Company will not file any registration statements or amend any already filed registration statement with the Commission or with state regulatory
authorities without the consent of the Required Holders until the expiration of the “EXCLUSION PERIOD,” which shall be defined as the sooner of (i) the date that the Registration Statement shall have been current and available for use
in connection with the resale of the Registrable Securities for a period of 180 days, or (ii) until all the Shares and Warrant 

  

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Shares have been resold or transferred by the Subscribers pursuant to the Registration Statement or are eligible for immediate unrestricted resale pursuant
to Rule 144(k), without volume limitations. The Exclusion Period will be tolled during the pendency of an Event of Default as defined in the Certificate of Designation or an Event of Default as defined in the Warrants. 
 q. NASD Rule 2710 Filing; Broker Compensation. If required by the National Association of Securities Dealers, Inc. (“NASD”) Corporate
Financing Department, the Company shall promptly effect a filing with the NASD pursuant to NASD Rule 2710 with respect to the public offering contemplated by resales of securities under the Registration Statement (an “ISSUER FILING”), and
pay the filing fee required by such Issuer Filing. The Company shall use commercially reasonable efforts to pursue the Issuer Filing until the NASD issues a letter confirming that it does not object to the terms of the offering contemplated by the
Registration Statement. 
 4. OBLIGATIONS OF THE BUYER. In connection with the registration of the Registrable Securities, the Buyer
shall have the following obligations: 
 a. It shall be a condition precedent to the obligations of the Company to complete the registration
pursuant to this Agreement with respect to the Registrable Securities of the Buyer that the Buyer shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the
Registrable Securities held by it as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request. At least three
(3) business days prior to the first anticipated filing date of the Registration Statement, the Company shall notify the Buyer of the information the Company requires from each Buyer. 
 b. The Buyer, by the Buyer’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company
in connection with the preparation and filing of the Registration Statements hereunder, unless the Buyer has notified the Company in writing of the Buyer’s election to exclude all of the Buyer’s Registrable Securities from the Registration
Statements. 
 c. In the event of an underwritten offering pursuant to Section 2(b) in which any Registrable Securities are to be
included, the Buyer agrees to enter into and perform the Buyer’s obligations under an underwriting agreement, in usual and customary form, including, without limitation, customary indemnification and contribution obligations, with the managing
underwriter of such offering and take such other actions as are reasonably required in order to expedite or facilitate the disposition of the Registrable Securities, unless the Buyer has notified the Company in writing of the Buyer’s election
to exclude all of the Buyer’s Registrable Securities from such Registration Statement. 
 d. The Buyer agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind described in Section 3(e) or 3(f), the Buyer will immediately discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable
Securities until the Buyer’s receipt of the copies of the supplemented or 

  

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amended prospectus contemplated by Section 3(e) or 3(f) and, if so directed by the Company, the Buyer shall deliver to the Company (at the expense of
the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in the Buyer’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice. 
 e. No Buyer may participate in any underwritten registration hereunder unless the Buyer (i) agrees to sell the Buyer’s Registrable Securities
on the basis provided in any underwriting arrangements in usual and customary form entered into by the Company, (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements, and (iii) agrees to pay its pro rata share of all underwriting discounts and commissions and any expenses in excess of those payable by the Company pursuant to
Section 5 below. 
 5. EXPENSES OF REGISTRATION. All reasonable expenses, other than underwriting discounts and commissions,
incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualification fees, printers and accounting fees, the fees and disbursements of counsel
for the Company shall be borne by the Company. 
 6. INDEMNIFICATION. In the event any Registrable Securities are included in a
Registration Statement under this Agreement: 
 a. To the extent permitted by law, the Company will indemnify, hold harmless and defend
(i) the Buyer, (ii) the directors, officers, partners, managers, members, employees, agents and each person who controls any Buyer within the meaning of the 1933 Act or the Securities Exchange Act of 1934, as amended (the “1934
ACT”), if any, (iii) any underwriter (as defined in the 1933 Act) for the Buyer in connection with an underwritten offering pursuant to Section 2(b) hereof, and (iv) the directors, officers, partners, employees and each person
who controls any such underwriter within the meaning of the 1933 Act or the 1934 Act, if any (each, an “INDEMNIFIED PERSON”), against any joint or several losses, claims, damages, liabilities or expenses (collectively, together with
actions, proceedings or inquiries by any regulatory or self-regulatory organization, whether commenced or threatened, in respect thereof, “CLAIMS”) to which any of them may become subject insofar as such Claims arise out of or are based
upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or the omission or alleged omission to state therein a material fact required to be stated or necessary to make the statements therein not
misleading; (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final prospectus (as amended or
supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under
which the statements therein were made, not misleading; or (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation
thereunder relating to the offer or sale of the Registrable Securities (the matters in the foregoing clauses (i) through (iii) being, collectively, “VIOLATIONS”). Subject to the 

  

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restrictions set forth in Section 6(c) with respect to the number of legal counsel, the Company shall reimburse the Indemnified Person, promptly as such
expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by any
Indemnified Person or underwriter for such Indemnified Person expressly for use in connection with the preparation of such Registration Statement or any such amendment thereof or supplement thereto; (ii) shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld; and (iii) with respect to any preliminary prospectus, shall not inure to the benefit of
any Indemnified Person if the untrue statement or omission of material fact contained in the preliminary prospectus was corrected on a timely basis in the prospectus, as then amended or supplemented, such corrected prospectus was timely made
available by the Company pursuant to Section 3(c) hereof, and the Indemnified Person was promptly advised in writing not to use the incorrect prospectus prior to the use giving rise to a Violation and such Indemnified Person, notwithstanding
such advice, used it. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Buyer pursuant to
Section 9. 
 b. [Intentionally Omitted]. 
 c. Promptly after receipt by an Indemnified Person under this Section 6 of notice of the commencement of any action (including any governmental action), such Indemnified Person shall, if Claim in respect thereof
is to be made against any the Company under this Section 6, deliver to the Company a written notice of the commencement thereof, and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume
control of the defense thereof with counsel mutually satisfactory to the Company and the Indemnified Person, as the case may be. 
 PROVIDED, HOWEVER, that an Indemnified Person shall have the right to retain its own counsel with the reasonable fees and expenses to be paid by the Company, if, in the reasonable opinion of counsel retained by the Company, the
representation by such counsel of the Indemnified Person and the Company would be inappropriate due to actual or potential differing interests between such Indemnified Person and any other party represented by such counsel in such proceeding. The
Company shall pay for only one separate legal counsel for the Indemnified Persons, and such legal counsel shall be selected by Buyer, if the Buyer is entitled to indemnification hereunder. The failure to deliver written notice to the Company within
a reasonable time of the commencement of any such action shall not relieve the Company of any liability to the Indemnified Person under this Section 6, except to the extent that the Company is actually prejudiced in its ability to defend such
action. The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as such expense, loss, damage or liability is incurred and is due and payable.

  

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 d. To the extent permitted by law, the Buyer will indemnify, hold harmless and defend (i) the
Company, and (ii) the directors, officers, partners, managers, members, employees, or agents of the Company, if any (each, a “COMPANY INDEMNIFIED PERSON”), against any joint or several losses, claims, damages, liabilities or expenses
(collectively, together with actions, proceedings or inquiries by any regulatory or self-regulatory organization, whether commenced or threatened, in respect thereof, “CLAIMS”) to which any of them may become subject insofar as such Claims
arise out of or are based upon a Claim arising out of or based upon any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation
thereunder relating to the offer or sale of the Registrable Securities, which occurs due to the inclusion by the Company in a Registration Statement of false or misleading information about the Buyer, where such information was furnished in writing
to the Company by the Buyer for the purpose of inclusion in such Registration Statement. 
 7. CONTRIBUTION. To the extent any
indemnification by the Company is prohibited or limited by law, the Company agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law, based
upon a comparative fault standard. 
 8. REPORTS UNDER THE 1934 ACT. With a view to making available to the Buyer the benefits of Rule
144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that may at any time permit the Buyer to sell securities of the Company to the public without registration (“RULE 144”), the Company agrees to:

 a. make and keep public information available, as those terms are understood and defined in Rule 144; 
 b. file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long as the
Company remains subject to such requirements (it being understood that nothing herein shall limit the Company’s obligations under Section 4(c) of the Securities Purchase Agreement) and the filing of such reports and other documents is
required for the applicable provisions of Rule 144; and 
 c. furnish to the Buyer so long as the Buyer owns Registrable Securities, promptly
upon request, (i) a written statement by the Company that it has complied with the reporting requirements of the 1933 Act and the 1934 Act as required for applicable provisions of Rule 144, (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to permit the Buyers to sell such securities pursuant to Rule 144 without
registration. 
 9. ASSIGNMENT OF REGISTRATION RIGHTS. The rights under this Agreement shall be automatically assignable by the Buyers
to any transferee of all or any portion of Registrable Securities as authorized by the Securities Purchase Agreement if: (i) the Buyer agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is
furnished to the Company within a reasonable time after such assignment, (ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written 

  

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notice of (a) the name and address of such transferee or assignee, and (b) the securities with respect to which such registration rights are being
transferred or assigned, (iii) following such transfer or assignment, the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act and applicable state securities laws, (iv) at or before the
time the Company receives the written notice contemplated by clause (ii) of this sentence, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein, and (v) such transfer shall
have been made in accordance with the applicable requirements of the Securities Purchase Agreement. In the event that the Buyer transfers all or any portion of its Registrable Securities pursuant to this Section, the Company shall have at least ten
(10) days to file any amendments or supplements necessary to keep the Registration Statement current and effective pursuant to Rule 415, and the commencement date of any Event of Failure or Event of Default under the Certificate of Designation
or the Warrants caused thereby will be extended by ten (10) days. 
 10. AMENDMENT OF REGISTRATION RIGHTS. Provisions of this
Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with written consent of the Company, the Buyer (to the extent such Buyer still owns
Registrable Securities) and the Required Holders. Any amendment or waiver effected in accordance with this Section 10 shall be binding upon the Buyer and the Company. 
 11. MISCELLANEOUS. 
 a. A person or
entity is deemed to be a holder of Registrable Securities whenever such person or entity owns of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more persons or entities with
respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered owner of such Registrable Securities. 
 b. Any notices required or permitted to be given under the terms hereof shall be sent by certified or registered mail (return receipt requested) or
delivered personally or by courier (including a recognized overnight delivery service) or by facsimile and shall be effective five days after being placed in the mail, if mailed by regular United States mail, or upon receipt, if delivered personally
or by courier (including a recognized overnight delivery service) or by facsimile, in each case addressed to a party. The addresses for such communications shall be: 
 If to the Company: To the address set forth immediately below such 
 Company’s name on the signature
pages hereto. 
  

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 With copy to: 
  

					
		 	After May 25, 2007, address changes to:
	 Lance R. Rodgers, Esq.
 Barack Ferrazzano
Kirschbaum
 Perlman & Nagelberg LLP
	 	
	 333 West Wacker Drive, Suite 2700
 Chicago, Illinois
60606
	 	 200 West Madison Street, Suite 3900
 Chicago, IL 60606

	 Phone: (312) 984-3100
 Fax:
(312) 984-3150
	 	

 If to a Buyer: To the address set forth immediately below such Buyer’s name on the signature
pages hereto. 
 Each party shall provide notice to the other party of any change in address. 
 c. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall
not operate as a waiver thereof. 
 d. 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 legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by this Agreement (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. Each party 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 any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in
any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or 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
other manner permitted by law. The parties hereby waive all rights to a trial by jury. If either party shall commence an action or proceeding to enforce any provisions of the this Agreement, then the prevailing party in such action or 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 action or proceeding. 
  

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 e. This Agreement and the Securities Purchase Agreement (including all schedules and exhibits thereto)
constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This
Agreement and the Securities Purchase Agreement supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof. 
 f. Subject to the requirements of Section 9 hereof, this Agreement shall inure to the benefit of and be binding upon the successors and assigns of
each of the parties hereto. 
 g. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof. 
 h. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but
all of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering
this Agreement. 
 i. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby. 
 j. Except as otherwise provided herein, all consents and other determinations to be made by the Buyer pursuant to
this Agreement shall be made the Required Holders. 
 k. The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Buyer by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for breach of its obligations hereunder will be inadequate and agrees, in the
event of a breach or threatened breach by the Company of any of the provisions hereunder, that the Buyer shall be entitled, in addition to all other available remedies in law or in equity, to an injunction or injunctions to prevent or cure breaches
of the provisions of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required. 
 l. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party. 
 m. In the event that any provision of this Agreement is invalid or unenforceable under any
applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of any other provision hereof. 
  

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 n. The initial number of Registrable Securities included in any Registration Statement and each increase
to the number of Registrable Securities included therein shall be allocated pro rata among the Buyers based on the number of Registrable Securities held by the Buyer at the time of such establishment or increase, as the case may be. In the event a
Buyer shall sell or otherwise transfer any of such holder’s Registrable Securities, each transferee shall be allocated a pro rata portion of the number of Registrable Securities included in a Registration Statement for such transferor. Any
shares of Common Stock included in a Registration Statement and which remain allocated to any person or entity which does not hold any Registrable Securities shall be allocated to the remaining Buyers, pro rata based on the number of shares of
Registrable Securities then held by the Buyers. For the avoidance of doubt, the number of Registrable Securities held by a Buyer shall be determined as if all the Preferred Stock and Warrants then outstanding and held by a Buyer were converted into
or exercised for Registrable Securities, without regard to any limitation on the Buyer’s ability to convert the Preferred Stock or exercise the Warrants. 
 o. There shall be no oral modifications or amendments to this Agreement. This Agreement may be modified or amended only in writing. 
 IN WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the 30th day of March, 2007. 
  

									
	COMPANY:	 		 	BUYER:
	AVICENA GROUP, INC.	 		 	BRIDGEPOINTE MASTER FUND LTD.
					
	By:	 	 Belinda Tsao Nivaggioli
	 		 	By:	 	 /s/ Eric S. Swartz

		 	Belinda Tsao Nivaggioli,	 		 		 	Eric S. Swartz, Director
		 	Chief Executive Officer	 		 		 	

  

									
	ADDRESS:	 		 	ADDRESS:	 	
			
	228 Hamilton Avenue, 3rd floor	 		 	1125 Sanctuary Parkway, Suite 275
	Palo Alto, CA 94301	 		 	Alpharetta, GA 30004
	Phone:	 	415-397-2880	 		 	Telephone:	 	770-640-8130
	Fax:	 	415-397-2898	 		 	Fax:	 	(770) 777-5844
		 		 		 		 	

  

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