Document:

Exhibit 4.1

SECURITIES PURCHASE AGREEMENT

This Securities
Purchase Agreement (this “Agreement”) is dated as of September 15, 2006,
among INOVIO BIOMEDICAL CORPORATION, a Delaware corporation (the “Company”),
and each purchaser identified on the signature pages hereto (each, including
its successors and assigns, a “Purchaser” and collectively the “Purchasers”);
and

WHEREAS, the
Company desires to issue and sell to each Purchaser, and each Purchaser,
severally and not jointly, desires to purchase from the Company shares of
Common Stock and Warrants on the Closing Date;

WHEREAS, the offer
and sale of the shares of Common Stock, Warrants and Warrant Shares hereunder
have been registered by the Company in the Registration Statement, which has
been declared effective by order of the Commission under the Securities Act;
and

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration the receipt and adequacy of which are
hereby acknowledged, the Company and each Purchaser agrees as follows:

ARTICLE I.

DEFINITIONS

1.1                                 Definitions.  In addition to the terms defined elsewhere in
this Agreement, for all purposes of this Agreement, the following terms have
the meanings indicated in this Section 1.1:

“Action” shall
have the meaning ascribed to such term in Section 3.1(j).

“AMEX” means the
American Stock Exchange.

“Affiliate” means
any Person that, directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with a Person as such
terms are used in and construed under Rule 144.

“business day”
means any day except Saturday, Sunday and any day that shall be a legal holiday
or a day on which banking institutions in the State of California generally are
authorized or required by law or other government actions to close.

“Closing” means
the closing of the purchase and sale of the Shares and the Warrants pursuant to
Section 2.1.

“Closing Date”
means the third business day after all conditions to Closing in Section 2.2
hereof have been satisfied or waived, or such later date as is mutually
acceptable to the parties.

“Closing Price”
means the average of the closing price per share of the Company’s Common Stock
as reported on the AMEX for each of the fifteen (15) consecutive Trading Days
immediately preceding the day this Agreement is executed, or 

 

if executed after 4:30
p.m. EDT on a Trading Day then for each of the fifteen (15) consecutive Trading
Days ending on that day.

“Commission” means
the Securities and Exchange Commission.

“Common Stock” means the common stock of the
Company, $0.001 par value per share, and any
securities into which such common stock may hereafter be reclassified.

“Common Stock
Equivalents” means any securities of the Company or the Subsidiaries which
would entitle the holder thereof to acquire at any time Common Stock, including
without limitation, any debt, preferred stock, rights, options, warrants or
other instrument that is at any time convertible into or exchangeable for, or
otherwise entitles the holder thereof to receive, Common Stock.

“Company Counsel”
means Kirkpatrick & Lockhart Nicholson & Graham LLP.

“Disclosure Schedules”
means the Disclosure Schedules of the Company delivered concurrently herewith.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

“Intellectual Property
Rights” shall have the meaning ascribed to such term in Section 3.1(o).

“Lead Purchaser”
shall mean Broadven Ltd.

“Liens” means a
lien, charge, security interest, encumbrance, right of first refusal,
preemptive right or other restriction.

“Material Adverse
Effect” shall mean (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect
on the results of operations, assets, business, prospects or financial
condition of the Company and the Subsidiaries, taken as a whole, or (iii) a
material adverse effect on the Company’s ability to perform in any material
respect on a timely basis its obligations under any Transaction Document;
provided, that none of the following alone shall be deemed, in and of itself,
to constitute a Material Adverse Effect: (i) a change in the market price or
trading volume of the Common Stock or (ii) changes in general economic
conditions or changes affecting the industry in which the Company operates
generally (as opposed to Company-specific changes) so long as such changes do
not have a disproportionate effect on the Company and its Subsidiaries taken as
a whole.

“Per Share Purchase
Price” means $2.43 per share, subject to adjustment for reverse and forward
stock splits, stock dividends, stock combinations and other similar
transactions of the Common Stock that occur after the date of this Agreement
and prior to the Closing Date.

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“Person” means an
individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind.

“Post-Effective
Amendment” means shall have the meaning ascribed to such term in Section
4.2.

“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 Supplement”
means the prospectus supplement to be filed with the Commission pursuant to
Rule 424 under the Securities Act relating to the offer and sale of the
Securities as listed in the form of prospectus included in the Registration Statement.

“Recent Reports”
shall have the meaning ascribed to such term in Section 3.1(i).

“Registration
Statement” means the registration statement filed with the Commission on Form S-3 (File No. 333-134084) under the
Securities Act and the rules and regulations of the Commission thereunder,
declared effective as of May 25, 2006, and such amendments to such registration
statement as have been filed as of the date of this Agreement, the exhibits and
any schedules thereto, the documents incorporated by reference therein and the
documents and information otherwise deemed to be a part thereof or included
therein, including the Prospectus Supplement and any Post-Effective Amendment.

“Required Approvals”
shall have the meaning ascribed to such term in Section 3.1(e).

“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.

“SEC Reports”
shall have the meaning ascribed to such term in Section 3.1(h).

“Securities” means the Shares, the Warrants and the Warrant
Shares.

“Securities Act”
means the Securities Act of 1933, as amended.

“Shares” means the
shares of Common Stock issued or issuable to each Purchaser pursuant to this
Agreement.

“Subscription Amount”
means, as to each Purchaser, the amount set forth below such Purchaser’s
signature block on the signature page hereto, in United States dollars and in
immediately available funds.

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“Subscription Amounts”
means the total of each Subscription Amount from all Purchasers.

“Subsidiary” means
any entity more than 50% of the voting interest of which is held (directly or
indirectly) by the Company and/or one or more Subsidiaries of the Company.

“Subsidiary Financing”
means the sale and purchase of shares of the Ordinary Shares of Inovio Asia
Pte. Ltd., the Company’s subsidiary organized in the Republic of Singapore (“IAPL”),
pursuant to the Securities Purchase and Exchange Agreement between IAPL, the
Company and certain purchasers named therein, to be dated of even date herewith
and to close concurrently with the Closing.

“Trading Day”
means a day on which the Common Stock is traded on a Trading Market.

“Trading Market”
means the following markets or exchanges on which the Common Stock is listed or
quoted for trading on the date in question: the American Stock Exchange, the
New York Stock Exchange, the Nasdaq Global Market or the Nasdaq Capital Market.

“Transaction Documents”
means this Agreement, the Warrants and any other documents or agreements
executed in connection with the transactions contemplated hereunder.

“Warrants” means
the Common Stock Purchase Warrants, in the form of Exhibit A
hereto, issuable to the Purchasers at the Closing, which warrants shall be
exercisable immediately upon issuance for a term of five (5) years and have an
exercise price equal to $2.87 per share.

“Warrant Shares”
means the shares of Common Stock issuable upon exercise of the Warrants.

ARTICLE II.

PURCHASE AND SALE

2.1                                 Closing.  On the Closing Date, each Purchaser shall
purchase from the Company, severally and not jointly with the other Purchasers,
and the Company shall issue and sell to each Purchaser, (a) the number of
Shares set forth with respect to such Purchaser on Schedule 2.1 under
the caption “Purchased Shares” with respect to such Purchaser and (b) Warrants
to purchase such number of shares of Common Stock as is set forth with respect
to such Purchaser on Schedule 2.1 under the caption “Warrants to be
Issued”.  The aggregate number of Shares
sold hereunder shall be up to 4,074,067 (excluding shares issuable upon
exercise of the Warrants).  Prior to the
Closing, the Subscription Amount payable by each Purchaser in the Closing,
together with all other closing deliverables available, shall be placed in
escrow pending the Closing pursuant to a closing escrow agreement among the
Company, the Lead Purchaser and Fenwick & West LLP (the latter serving as
the “Escrow Agent”), which agreement shall be in the form attached
hereto as Exhibit B (the “Closing Escrow Agreement”). Upon satisfaction
of 

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the conditions to the obligations of the
Purchasers set forth in Section 2.2(a) and the conditions to the obligations of
the Company set forth in Section 2.2(b), the Closing shall occur at the Los
Angeles offices of Company Counsel or such other location as the parties shall
mutually agree on the Closing Date.

2.2                                 Closing
Conditions; Deliveries.

(a)                                  The
obligations of each Purchaser to purchase the Shares and Warrants and to pay
the Subscription Amount therefore are subject to the satisfaction or waiver by
the Lead Purchaser of each of the following conditions:

(i)                                     All
representations and warranties of the Company contained herein shall remain
true and correct as of the Closing Date and all covenants of the Company shall
have been performed if due prior to such date.

(ii)                                  There
shall have been delivered into escrow, pursuant to the Closing Escrow
Agreement, Subscription Amounts in cash of at least $8,000,000.

(iii)                               On
the Closing Date, the Company shall deliver or cause to be delivered to each
Purchaser the following (each document to be reasonably satisfactory in form
and substance to the Lead Purchaser and to counsel for the Lead Purchaser):

(A)                              this
Agreement duly executed by the Company;

(B)                                a
copy of, and written acknowledgement by the Company’s transfer agent of,
irrevocable instructions duly signed by an authorized signatory of the Company
addressed to the Company’s transfer agent instructing the transfer agent to
deliver, on an expedited basis and no later than the third Trading Day after
the Closing Date, one or more certificates evidencing the aggregate number of
shares of Common Stock duly authorized, issued, fully paid and non-assessable,
equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase
Price, registered in the name of such Purchaser;

(C)                                one
or more certificates evidencing the Warrants, registered in the name of such
Purchaser (subject to Section 4.9 below), pursuant to which such Purchaser
shall initially have the right to acquire up to the number of shares of Common
Stock set forth with respect to such Purchaser on Schedule 2.1 under the
caption “Warrants to be Issued”;

(D)                               the
Closing Escrow Agreement duly executed by the Company;

(E)                                 a
legal opinion of Company Counsel, in the form of Exhibit C hereto;

(F)                                 the
Securities Purchase and Exchange Agreement for the Subsidiary Financing duly
executed by the Company;

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(G)                                A
certificate of the Secretary of the Company (the “Secretary’s Certificate”),
in form and substance satisfactory to the Lead Purchaser, certifying in his
capacity as an officer of the Company as follows:

(1)                                  that
attached to the Secretary’s Certificate is a true and complete copy of the
Certificate of Incorporation of the Company, as amended to the Closing Date;

(2)                                  that
attached to the Secretary’s Certificate is a true and complete copy of the
Bylaws of the Company, as amended to the Closing Date;

(3)                                  that
attached to the Secretary’s Certificate are true and complete copies of the
resolutions of the Board of Directors of the Company (the “Board of
Directors”) authorizing the execution, delivery and performance of this
Agreement and the other Transaction Documents, instruments and certificates
required to be executed by it in connection herewith and approving the
consummation of the transactions in the manner contemplated hereby and by the
other Transaction Documents including, but not limited to, the authorization
and issuance of the Shares, Warrants and Warrant Shares;

(4)                                  the
names and true signatures of the officers of the Company signing this Agreement
and all other documents executed on behalf of the Company to be delivered in
connection with this Agreement; and

(5)                                  such
other matters as the Lead Purchaser may reasonably request;

(H)                               A
wire transfer in the amount of $100,000 pursuant to the reimbursement provision
of Section 5.1 of this Agreement;

(I)                                    Confirmation
from AMEX, or a letter from the Company, based upon (and summarizing) a
discussion with AMEX, confirming that the Company’s issuance of the Shares and
Warrants, the Subsidiary Financing, the structure of the transactions
contemplated by this Agreement and the Subsidiary Financing, and the pricing of
the Securities does not require approval of the Company’s stockholders; and

(J)                                   A
certificate executed by the chief executive officer of the Company stating that
the representations and warranties of the Company hereunder are true and
correct as of the Closing Date and that the Company has performed all obligations
to be performed prior to such date.

(K)                               A
certificate of good standing of the Company as of a recent date.

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(iv)                              AMEX
shall have notified the Company that the Shares, the Warrant Shares, the shares
of the Company’s common stock to be exchanged for ordinary shares of IAPL in
the Subsidiary Financing and the shares of the Company’s common stock issuable
upon exercise of the warrants to be exchanged for ordinary shares of IAPL in
the Subsidiary Financing have been approved for listing on AMEX.

(v)                                 The
Company shall have timely filed the Prospectus Supplement relating to the
issuance and sale of the Securities to be issued by the Company pursuant to
this Agreement.

(b)                                 The
obligations of the Company to issue and sell the Shares and Warrants to each
Purchaser hereunder are subject to the satisfaction or waiver by the Company of
each of the following conditions:

(i)                                     All
representations and warranties of such Purchaser  contained herein shall remain true and
correct as of the Closing Date and all covenants of such Purchaser shall have
been performed if due prior to such date.

(ii)                                  There
shall have been delivered into escrow, pursuant to the Closing Escrow
Agreement, Subscription Amounts in cash of at least $8,000,000.

(iii)                               The
Company shall have obtained confirmation from AMEX that the Company’s issuance
of the Shares and Warrants, the Subsidiary Financing, the structure of the
transactions contemplated by this Agreement and the Subsidiary Financing, and
the pricing of the Securities does not require approval of the Company’s
stockholders;

(iv)                              On
the Closing Date, such Purchasers shall have delivered or caused to be
delivered to the Company the following:

(A)                              this
Agreement duly executed by such Purchaser;

(B)                                such
Purchaser’s Subscription Amount by wire transfer to the Company pursuant to the
Closing Escrow Agreement; and

(C)                                a
written request for reimbursement for fees and expenses pursuant to Section 5.1
of this Agreement.

Notwithstanding the foregoing, in the event
that the conditions set forth in Sections 2.2(a)(iii)(I) and 2.2(b)(iii) shall
not be satisfied by the date 60 business days after the date of this Agreement,
none of the parties hereto shall be obligated to consummate the transactions
contemplated by this Agreement and any items delivered pursuant to this Section
2.2 shall be returned by the Escrow Agent to the appropriate party pursuant to
the terms of the Closing Escrow Agreement.

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ARTICLE III.

REPRESENTATIONS AND WARRANTIES

3.1                                 Representations
and Warranties of the Company. 
Except as set forth in the Disclosure Schedules, which Disclosure
Schedules shall be deemed a part hereof, the Company hereby makes the
representations and warranties set forth below to each Purchaser as of the date
hereof and as of the Closing Date:

(a)                                  Subsidiaries.  All of the direct and indirect subsidiaries
of the Company are set forth on Schedule 3.1(a).  The Company owns, directly or indirectly, all
of the capital stock or other equity interests of each Subsidiary free and
clear of any Liens, and all the issued and outstanding shares of capital stock
of each Subsidiary are validly issued and are fully paid, non-assessable and
free of preemptive and similar rights to subscribe for or purchase securities.

(b)                                 Organization
and Qualification.  Each of the
Company and the Subsidiaries is an entity duly incorporated or otherwise
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization (as applicable), with the
requisite power and authority to own and use its properties and assets and to
carry on its business as currently conducted. 
Neither the Company nor any Subsidiary is in violation or default of any
of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents.  Each of the Company and the Subsidiaries is
duly qualified to conduct business and is in good standing as a foreign
corporation or other entity in each jurisdiction in which the nature of the
business conducted or property owned by it makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case
may be, would not result in a Material Adverse Effect and no Proceeding has
been instituted in any such jurisdiction revoking, limiting or curtailing or
seeking to revoke, limit or curtail such power and authority or qualification.

(c)                                  Authorization;
Enforcement.  The Company has the
requisite corporate power and authority to enter into and to consummate the
transactions contemplated by each of the Transaction Documents and otherwise to
carry out its obligations thereunder.  No
approval by the Company’s stockholders is required for the consummation of the
transaction contemplated by the Transaction Documents, including the issuance
and sale of the Shares and Warrants.  The
execution and delivery of each of the Transaction Documents by the Company and
the consummation by it of the transactions contemplated thereby have been duly
authorized by all necessary action on the part of the Company and no further
action is required by the Company in connection therewith other than in
connection with the Required Approvals (as defined in Section 3.1(e)) .  Each Transaction Document has been (or upon
delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof, will constitute the valid and binding
obligation of the Company enforceable against the Company in accordance with
its terms except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may
be limited by applicable law.

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(d)                                 No
Conflicts.  The execution, delivery
and performance of the Transaction Documents by the Company, the issuance and
sale of the Securities and the consummation by the Company of the other
transactions contemplated thereby do not and will not (i) conflict with or
violate any provision of the Company’s or any Subsidiary’s certificate or
articles of incorporation, bylaws or other organizational or charter documents,
or (ii) conflict with, or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, result in the creation of
any Lien upon any of the properties or assets of the Company or any Subsidiary,
or give to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of, any agreement,
credit facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or any
Subsidiary is a party or by which any property or asset of the Company or any
Subsidiary is bound or affected, or (iii) subject to the Required Approvals,
conflict with or result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including assuming
the accuracy of the representations and warranties of the Purchasers set forth
in Section 3.2 hereof, federal and state securities laws and regulations), or
by which any property or asset of the Company or a Subsidiary is bound or
affected, or (iv) conflict with or violate the terms of any agreement by which
the Company or any Subsidiary is bound or to which any property or asset of the
Company or any Subsidiary is bound or affected; except in the case of each of
clauses (ii) and (iii), such as would not result in a Material Adverse Effect.

(e)                                  Filings,
Consents and Approvals.  The Company
is not required to obtain any consent, waiver, authorization or order of, give
any notice to, or make any filing or registration with, any court or other
federal, state, local or other governmental authority or other Person in
connection with the execution, delivery and performance by the Company of the
Transaction Documents, other than (i) filings required pursuant to Section 4.2
of this Agreement, (ii) the filing with the Commission of a prospectus
supplement and Form 8-K, and (iii) application(s) to AMEX for the listing of
the Shares and Warrant Shares for trading thereon in the time and manner
required thereby (collectively, the “Required Approvals”). The Company
has filed, or will file, a prospectus supplement with the Commission with
respect to the offer and sale of the Shares, the Warrants and Warrant Shares at
or before the date such filing is required by Rule 424 of the rules under the
Securities Act of 1933, as amended, and has filed or will file an application
with AMEX for the listing of the Shares and Warrant Shares for trading thereon
in the time and manner required by the rules and listing requirements of AMEX.

(f)                                    Issuance
of the Securities.  The Shares and
Warrants are duly authorized and, when issued and paid for in accordance with
the Transaction Documents, will be duly and validly issued, fully paid and
nonassessable, free and clear of all Liens imposed by the Company other than
restrictions on transfer provided for in the Transaction Documents.  The Warrant Shares, when issued in accordance
with the terms of the Transaction Documents, will be validly issued, fully paid
and nonassessable, free and clear of all Liens imposed by the Company.  The Company has reserved from its duly
authorized capital stock the maximum number of shares of Common Stock issuable
pursuant to this Agreement and the Warrants.

(g)                                 Capitalization.  The number of authorized and outstanding
shares of capital stock, and Common Stock Equivalents,  of the Company, before giving effect to  the 

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Closing of the transactions contemplated
herein, including the Collateral Transactions (as defined in Section 3.2(i)),
is as described in the Company’s most recent periodic report filed with the
Commission.  The Company has not issued
any capital stock (including, without limitation, any Common Stock Equivalents)
since such filing other than pursuant to the exercise of employee stock options
under the Company’s stock option plans, the issuance of shares of Common Stock
to employees pursuant to the Company’s employee stock purchase plan and
pursuant to the conversion or exercise of outstanding Common Stock
Equivalents.  All of the outstanding
shares of capital stock of the Company are validly issued, fully paid and
nonassessable. Except as set forth in Schedule 3.1(g), there are no
stockholders agreements, voting agreements or other similar agreements with
respect to the Company’s capital stock to which the Company is a party or, to
the knowledge of the Company, between or among any of the Company’s
stockholders. Except as set forth in Schedule 3.1(g), none of the
stockholders of the Company possess any preemptive rights in respect of the
Securities. Except as disclosed in Schedule 3.1(g), neither the Company
nor any of its Affiliates or any other Person acting on behalf of the Company
has repurchased any of the Company’s outstanding Common Stock or Common Stock
Equivalents since December 31, 2005.

(h)                                 SEC
Reports; Financial Statements.  The
Company has filed all reports required to be filed by it under the Securities
Act and the Exchange Act, including, without limitation, pursuant to Section
13(a) or 15(d) thereof and including, without limitation, any registration
statements or prospectuses filed by the Company, during the thirty-six months
preceding the date hereof (or such shorter period as the Company was required
by law to file such material) (the foregoing materials, including the exhibits
thereto, being collectively referred to herein as the “SEC Reports”) on
a timely basis or has received a valid extension of such time of filing and has
filed any such SEC Reports prior to the expiration of any such extension.  As of their respective dates, the SEC Reports
complied in all material respects with the requirements of the Securities Act
and the Exchange Act and the rules and regulations of the Commission
promulgated thereunder, and none of the SEC Reports, when filed, contained any
untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading The SEC Reports, when taken as a whole, do not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading.   The financial statements of the Company
included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the Commission with respect
thereto as in effect at the time of filing. 
Such financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis
during the periods involved (“GAAP”), except as may be otherwise
specified in such financial statements or the notes thereto and except that
unaudited financial statements may not contain all footnotes required by GAAP
or may be condensed or summary statements, and fairly present in all material
respects the financial position of the Company and its consolidated
subsidiaries as of and for the dates thereof and the results of operations and
cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, year-end audit adjustments. There are no pending
internal investigations (including investigations by any committee of the Board
of Directors) relating to any accounting or internal controls matters,
including without limitation, stock option pricing and grant procedures.

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(i)                                     Material
Changes.  Since December 31,
2005, except as disclosed in the SEC Reports filed since December 31, 2005
including exhibits thereto filed or incorporated by reference therein (the “Recent
Reports”), or set forth in Schedule 3.1(i), (i) there has been no
event, occurrence or development that has had or that could result in a
Material Adverse Effect, (ii) neither the Company nor any Subsidiary has
incurred any liabilities (contingent or otherwise) other than (A) trade
payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or required to be
disclosed in filings made with the Commission, (iii) the Company has not
altered its method of accounting, and (iv) the Company has not declared or made
any dividend or distribution of cash or other property to its stockholders.

(j)                                     Litigation.  There is no action, suit, inquiry, notice of
violation, proceeding or investigation pending or, to the knowledge of the
Company, threatened against or affecting the Company, any Subsidiary or any of
their respective properties before or by any court, arbitrator, governmental or
administrative agency or regulatory authority (federal, state, county, local or
foreign) (collectively, an “Action”) other than (i) Actions described in
the Disclosure Schedules, and (ii) Actions which did not exist, and were not
known to the Company, as of the date of this Agreement and which (i) adversely
affect or challenge the legality, validity or enforceability of any of the
Transaction Documents or the Securities or (ii) if there were an unfavorable
decision, would result in a Material Adverse Effect.  Neither the Company nor any Subsidiary, nor
any director or officer thereof, is or has been the subject of any Action
involving a claim of violation of or liability under federal or state
securities laws or a claim of breach of fiduciary duty.  There has not been, and to the knowledge of
the Company, there is not pending or contemplated, any investigation by the
Commission involving the Company or any current or former director or officer
of the Company.  The Commission has not
issued any stop order or other order suspending the effectiveness of any
registration statement filed by the Company or any Subsidiary under the
Securities Act.

(k)                                  Labor
Relations.  No material labor dispute
exists or, to the knowledge of the Company, is imminent with respect to any of
the employees of the Company which would result in a Material Adverse Effect.

(l)                                     Compliance.  Neither the Company nor any Subsidiary (i) is
in default under or in violation of (and no event has occurred that has not
been waived that, with notice or lapse of time or both, would result in a
default by the Company or any Subsidiary under), nor has the Company or any
Subsidiary received notice of a claim that it is in default under or that it is
in violation of, any indenture, loan or credit agreement or any other agreement
or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in
violation of any order of any court, arbitrator or governmental body, or (iii)
is or has been in violation of any statute, rule or regulation of any
governmental or regulatory authority, including without limitation all foreign,
federal, state and local laws and all rules and regulations of any Trading
Market, in each case, applicable to its business or assets except in each case
as would not have a Material Adverse Effect.

(m)                               Regulatory Requirements.  The
Company and the Subsidiaries possess all certificates, authorizations and
permits issued by the appropriate federal, state, local or foreign 

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regulatory authorities necessary to conduct
their respective businesses as described in the Recent Reports, except where
the failure to possess such permits would not result in a Material Adverse
Effect (“Material Permits”), and neither the Company nor any Subsidiary
has received any notice of proceedings relating to the revocation or
modification of any Material Permit.  All
the Material Permits have been duly issued or obtained and are in full force
and effect, and the Company and its Subsidiaries are in material compliance
with the terms of all the Material Permits. The Company and its Subsidiaries
have not engaged in any activity that, to their knowledge, would cause
revocation or suspension of any such Material Permits. The Company has no
knowledge of any facts which could reasonably be expected to cause the Company
to believe that the Material Permits will not be renewed by the appropriate
governmental authorities in the ordinary course. Neither the execution,
delivery nor performance of this Agreement shall adversely affect the status of
any of the Material Permits.

(n)                                 Title
to Assets.  The Company and the
Subsidiaries have good and marketable title in fee simple to all real property
owned by them that is material to the business of the Company and the
Subsidiaries and good and marketable title in all personal property owned by
them that is material to the business of the Company and the Subsidiaries, in
each case free and clear of all Liens, except for Liens as do not materially
affect the value of such property and do not materially interfere with the use
made and proposed to be made of such property by the Company and the
Subsidiaries and Liens for the payment of federal, state or other taxes, the
payment of which is neither delinquent nor subject to penalties.  Any real property and facilities held under
lease by the Company and the Subsidiaries are held by them under valid,
subsisting and enforceable leases of which the Company and the Subsidiaries are
in compliance.

(o)                                 Intellectual
Property.

(i)                                     The
Company or a Subsidiary thereof has the right to use or is the sole and
exclusive owner of all right, title and interest in and to all material foreign
and domestic patents, patent rights, trademarks, service marks, trade names,
brands and copyrights (whether or not registered and, if applicable, including
pending applications for registration) owned, used or controlled by the Company
and its Subsidiaries (collectively, the “Intellectual Property Rights”)
and in and to each material invention, software, trade secret, technology,
product, composition, formula and method of process used by the Company or its
Subsidiaries (the Intellectual Property Rights and such other items, the “Intellectual
Property”), and, to the Company’s knowledge, has the right to use the same,
free and clear of any claim or conflict with the rights of others;

(ii)                                  no
royalties or fees (license or otherwise) are payable by the Company or its
Subsidiaries to any Person by reason of the ownership or use of any of the
Intellectual Property except as set forth on Schedule 3.1(o);

(iii)                               there
have been no claims made against the Company or its Subsidiaries asserting the
invalidity, abuse, misuse, or unenforceability of any of the Intellectual
Property, and, to its knowledge, there are no reasonable grounds for any such
claims;

 12
 

 

(iv)                              neither
the Company nor its Subsidiaries have made any claim of any violation or
infringement by others of its rights in the Intellectual Property, and to the
best of the Company’s knowledge, no reasonable grounds for such claims exist;
and

(v)                                 neither
the Company nor its Subsidiaries have received notice that it is in conflict
with or infringing upon the asserted rights of others in connection with the
Intellectual Property.

(p)                                 Insurance.  The Company and the Subsidiaries are insured
by insurers of recognized financial responsibility against such losses and
risks and in such amounts as are prudent and customary in the businesses in
which the Company and the Subsidiaries are engaged.  To the best
of Company’s knowledge, such insurance contracts and policies are accurate and
complete.  During the 12 months
prior to the date hereof, neither the Company nor any Subsidiary has received
any notice from any of its insurers that it will not be able to renew its
existing insurance coverage as and when such coverage expires.

(q)                                 Transactions
With Affiliates and Employees. 
Except as set forth in the Recent Reports, none of the officers or
directors of the Company and, to the knowledge of the Company, none of the
employees of the Company is presently a party to any transaction with the
Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing
for the furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any entity in
which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner, in each case in excess of $60,000,
other than (i) for payment of salary or consulting fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii) for
other employee benefits, including stock option agreements under any stock
option plan of the Company.

(r)                                    Sarbanes-Oxley;
Internal Accounting Controls.  The
Company is in material compliance with all provisions of the Sarbanes-Oxley Act
of 2002 which are applicable to it as of the Closing Date.  The Company
and the Subsidiaries maintain a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with management’s general or
specific authorization, and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any differences. The Company has established
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) for the Company and designed such disclosure controls and
procedures to ensure that material information relating to the Company,
including its subsidiaries, is made known to the certifying officers by others
within those entities, particularly during the period in which the Company’s
most recently filed periodic report under the Exchange Act, as the case may be,
is being prepared.  The Company’s
certifying officers have evaluated the effectiveness of the Company’s controls
and procedures as of the date prior to the filing date of the most recently
filed periodic report under the Exchange Act (such date, the “Evaluation
Date”).  The Company presented in its
most recently filed periodic report under the 

 13
 

 

Exchange Act the conclusions of the
certifying officers about the effectiveness of the disclosure controls and
procedures based on their evaluations as of the Evaluation Date.  Since the Evaluation Date, there have been no
significant changes in the Company’s internal controls (as such term is defined
in Item 307(b) of Regulation S-K under the Exchange Act) or, to the Company’s
knowledge, in other factors that would significantly adversely affect the
Company’s internal controls.  As of the
date of this Agreement, the Company has not determined, nor has it been advised
in writing by its independent accounting firm, at any time after December 31,
2005 through the date of this Agreement, that there are any material weaknesses
in the Company’s internal controls.

(s)                                  Regulatory
Authorities.  Without limiting the
generality of the representations and warranties made in the paragraphs above
and below, the Company represents and warrants that (i) the Company and
each of its Subsidiaries is in material compliance with all applicable
provisions of the United States Federal Food, Drug, and Cosmetic Act and the
rules and regulations promulgated thereunder (the “FDC Act”) and
equivalent laws, rules and regulations in jurisdictions outside the United
States in which the Company or its Subsidiaries do business, (ii) its
products and those of each of its Subsidiaries that are in the Company’s
control are not adulterated or misbranded and are in lawful distribution, (iii)
all of the products marketed by and within the control of the Company comply in
all material respects with any conditions of approval and the terms of the
application by the Company to the appropriate Regulatory Authorities (as
defined below), (iv) to the knowledge of the Company and its Subsidiaries,
no Regulatory Authority has initiated legal action with respect to the
manufacturing of the Company’s products, such as seizures or required recalls,
and the Company uses best efforts to comply with applicable good manufacturing
practice regulations, (v) its products are labeled and promoted by the
Company and its representatives in substantial compliance with the applicable
terms of the marketing applications submitted by the Company to the Regulatory
Authorities and the provisions of the FDC Act and foreign equivalents,
(vi) all adverse events that were known to and required to be reported by
Company to the Regulatory Authorities have been reported to the Regulatory
Authorities in a timely manner, (vii) neither the Company nor any of its
Subsidiaries is, to their knowledge, employing or utilizing the services of any
individual who has been debarred under the FDC Act or foreign equivalents,
(viii) all stability studies required to be performed for products
distributed by the Company or any of its Subsidiaries have been completed or
are ongoing in material compliance with the applicable Regulatory Authority
requirements, (ix) any products exported by the Company or any of its
Subsidiaries have been exported in compliance with the FDC Act and (x) the
Company and its Subsidiaries are in compliance in all material respects with
all applicable provisions of the Controlled Substances Act.  As used herein, “Regulatory Authority”
means any governmental authority in a country or region that regulates the
manufacture or sale of Company’s products, including, but not limited to, the
United States Food and Drug Administration.

(t)                                    Certain
Fees.  Except as set forth in Schedule
3.1(t) and Section 4.9, no brokerage or finder’s fees or commissions are or
will be payable by the Company to any broker, financial advisor or consultant,
finder, placement agent, investment banker, bank or other Person with respect
to the transactions contemplated by this Agreement.  Except as set forth in Section 4.9, the
Purchasers shall have no obligation with respect to any fees or with respect to
any claims made by or on behalf of other Persons for fees of a type
contemplated in this Section that may be due in connection with the
transactions contemplated by this Agreement.

 14

 

(u)           Investment Company. The
Company is not, and is not an Affiliate of, and immediately after receipt of
payment for the Shares, will not be or be an Affiliate of, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.  The Company shall conduct its business in a
manner so that it will not become subject to the Investment Company Act.

(v)           Listing and Maintenance
Requirements.  The Company’s Common
Stock is registered pursuant to Section 12(b) of the Exchange Act, and the
Company has taken no action designed to, or which to its knowledge is likely to
have the effect of, terminating the registration of the Common Stock under the
Exchange Act nor has the Company received any notification that the Commission
is contemplating terminating such registration. 
The Company has not, in the 12 months preceding the date hereof,
received notice from any Trading Market on which the Common Stock is or has
been listed or quoted to the effect that the Company is not in compliance with
the listing or maintenance requirements of such Trading Market.

(w)          Form S-3 Eligibility.  The Company is eligible to register the offer
and sale of the Securities to the Purchasers under Form S-3 promulgated under
the Securities Act and the Company hereby covenants and agrees to use
reasonable best efforts to maintain its eligibility to use Form S-3 for primary
issuances for such time as any Warrants may be outstanding. The offer and sale
of the Shares and the Warrants have been registered under, and are entitled to
the benefits of, the Registration Statement, and the Shares and the Warrants
are not restricted securities pursuant to the Securities Act; provided, however, the Warrants remain subject to certain
restrictions on transfer set forth therein.

(x)            Taxes.  Except for matters that would not,
individually or in the aggregate, would result in a Material Adverse Effect,
the Company and each Subsidiary has filed all necessary federal, state and
foreign income and franchise tax returns and has paid or accrued all taxes
shown as due thereon, and the Company has no knowledge of a tax deficiency
which has been asserted or threatened against the Company or any Subsidiary..

(y)           Foreign Corrupt Practices.  Neither the Company, nor to the knowledge of
the Company, any agent or other person acting on behalf of the Company, has (i)
directly or indirectly, used any funds for unlawful contributions, gifts,
entertainment or other unlawful expenses related to foreign or domestic
political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees or to any foreign or domestic political
parties or campaigns from corporate funds, (iii) failed to disclose fully any
contribution made by the Company (or made by any person acting on its behalf of
which the Company is aware) which is  in
violation of law, or (iv) violated in any material respect any provision of the
Foreign Corrupt Practices Act of 1977, as amended.

(z)            Antitakeover Provisions. The
Company and its Board of Directors have taken all necessary action, if any, in
order to render inapplicable any control share acquisition, business
combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company’s Certificate of
Incorporation (or similar charter documents) or the laws of its state of
incorporation that is or could become applicable to the Purchasers as a result
of the Purchasers  and the Company
fulfilling their obligations or exercising their rights under this Agreement or
any of the Transaction Documents or under the 

 15
 

 

agreements relating to the Collateral
Transactions, including, without limitation, as a result of the Company’s
issuance of the Securities and the Warrants and the Purchasers’ ownership of
the Securities and the Warrants.

The Purchasers
each acknowledge and agree that the Company does not make or has not made any
representations or warranties with respect to the transactions contemplated
hereby other than those set forth in this Agreement and in the other
Transaction Documents.

3.2           Representations and Warranties of
the Purchasers.  Each Purchaser
hereby, for itself and for no other Purchaser, represents and warrants as of
the date hereof and as of the Closing Date to the Company as follows:

(a)           Organization; Authority.  Such Purchaser (if other than a natural
person) is an entity duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization with full right,
corporate, partnership or limited liability company power and authority to
enter into and to consummate the transactions contemplated by the Transaction
Documents and otherwise to carry out its obligations thereunder. The execution
and delivery of the Transaction Documents to which such Purchaser is a party
and performance by such Purchaser of the transactions contemplated thereby have
been duly authorized by all necessary corporate or similar action on the part
of such Purchaser.  Each Transaction
Document to which it is a party has been duly executed by such Purchaser, and
when delivered by such Purchaser in accordance with the terms hereof, will
constitute the valid and legally binding obligation of such Purchaser,
enforceable against it in accordance with its terms, except (i) as limited by
general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may
be limited by applicable law.

(b)           Investment Intent.  Such Purchaser is acquiring the Securities as
principal for its own account for investment purposes only and not with a view
to or for distributing or reselling such Securities or any part thereof, has no
present intention of distributing any of such Securities and has no arrangement
or understanding with any other persons regarding the distribution of such
Securities (this representation and warranty not limiting such Purchaser’s
right to sell the Securities in compliance with the terms of the Securities and
applicable federal and state securities laws at any time).  Such Purchaser is acquiring the Securities
hereunder in the ordinary course of its business. Such Purchaser does not have
any agreement or understanding, directly or indirectly, with any Person to
distribute any of the Securities.

(c)           No Short Positions.  Each Purchaser has not entered, during the 30
days prior to the date of this Agreement, and shall not enter, from the date of
this Agreement through 48 hours after the Closing Date, into any Short
Sales.  For purposes of this Section
3.2(h), a “Short Sale” by a Purchaser means a sale of Common Stock that
is marked as a short sale and that is executed at a time when such Purchaser
has no equivalent offsetting long position in the Common Stock.  For purposes of determining whether a
Purchaser has an equivalent offsetting long position in the Common Stock, all
Common Stock and all Common Stock that would be issuable upon conversion or
exercise in full of all Common Stock Equivalents then held by such 

 16
 

 

Purchaser (assuming that such Common Stock
Equivalents were then fully convertible or exercisable, notwithstanding any
provisions to the contrary, and giving effect to any conversion or exercise
price adjustments scheduled to take effect in the future) shall be deemed to be
held long by such Purchaser.

(d)           Receipt of Registration Statement.  Such Purchaser acknowledges that it has
received the Company’s base prospectus dated May 25, 2006 relating to the
issuance and sale by the Company of the securities described therein in one of
more offerings up to a total dollar amount of proceeds of $75,000,000, as filed
in the Registration Statement.

(e)           Acknowledgement of Collateral
Transactions with Certain Purchasers. Such Purchaser acknowledges that the
Company will be issuing additional shares of its Common Stock and warrants to
purchase shares of its Common Stock pursuant to the terms of the Subsidiary
Financing, pursuant to the terms forth on Exhibit D hereto.  Such Purchaser also acknowledges that the
Company will allow certain holders of its outstanding shares of its Series A
and Series C Cumulative Convertible Preferred Stock (“Preferred Stock”)
to exchange pursuant to the applicable certificates of designation shares of
Preferred Stock for shares of the Company’s Common Stock and warrants to
purchase shares of Common Stock on substantially the same terms as provided
herein (the “Preferred Exchange”). 
The Subsidiary Financing and the Preferred Exchange are together the “Collateral
Transactions”.  Such Purchaser
intends to participate in the transaction contemplated by this Agreement and
agrees to proceed with the transaction contemplated by this Agreement
notwithstanding the Collateral Transactions and notwithstanding that the
Company has not offered, and is not permitting, all Purchasers to engage in the
Collateral Transactions.  Each of the
Purchasers (other than those engaging in the Collateral Transactions) waives
any right such Purchaser may otherwise have to engage in the Collateral
Transaction or to receive the consideration from the Company being provided to
the Purchasers engaging in the Collateral Transaction.

The Company
acknowledges and agrees that each Purchaser does not make or has not made any
representations or warranties with respect to the transactions contemplated
hereby other than those set forth in this Section 3.2.

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

4.1           Board of Directors.  Upon the Closing, the Company shall appoint
an additional “independent director” (as defined pursuant to the rules and
regulations of the AMEX).  If necessary,
the Company shall prepare and, on the Closing Date, file amendment(s) to its
Certificate of Incorporation and/or Bylaws to adjust the provisions governing
the size and composition of the Board of Directors.

4.2           Registration of the Warrant Shares.  In the event any of the Warrants remain
unexercised at such time as the Company becomes ineligible to issue the Warrant
Shares pursuant to the existing Registration Statement because the Company is
then not eligible for use of Form S-3 for primary issuances, the Company shall
file a post-effective amendment to the existing Registration Statement on Form
S-1 for the primary issuance of such shares (the “Post-Effective Amendment”)
within thirty (30) days of the first date upon which the Company is ineligible
to use its existing Registration Statement and to use its best efforts to cause
such Post-Effective Amendment to be declared effective by the Commission within
one-hundred twenty 

 17
 

 

(120) days of its filing.  The Company shall use its best efforts to
keep the Registration Statement, and the Post-Effective Amendment, if
applicable, current, effective, available for the sale of the Warrant Shares
and free from any material misstatement or omission to state a material fact
for a period not exceeding the earlier of (i) the fifth anniversary of the
Closing Date or (ii) the date on which the original Purchasers may sell all
Shares and Warrant Shares without restriction by the holding period of Rule
144(d) and the volume limitations of Rule 144(e) (provided that the Purchaser
or Purchasers are not “affiliates” of the Company within the meaning and
application of Rule 144).

4.3           Transfer Restrictions.

(a)           Subject to compliance with state and
federal securities laws, the Purchasers shall be entitled to assign and
transfer, without any prior consent and without restriction, any portion or all
of the Shares and the rights thereto.

(b)           Notwithstanding the issuance of the
Warrants pursuant to the Registration Statement, the Purchasers agree to the
imprinting of a legend on the Warrants indicating that the Warrants may not be
transferred, assigned or otherwise disposed of (except pursuant to Section 4.9
of this Agreement) unless such transfer (i) complies with state and federal
securities laws and (ii) is to (A) a non-”U.S. Person” as defined in Regulation
S as promulgated under the Securities Act, and (B) a Person that at the time of
transfer is (x) an “accredited investor” within the meaning of Rule 501(a) of
Regulation D under the Securities Act, or (y) a “Qualified Institutional Buyer”
within the meaning of Rule 144A(a)(1) of the Securities Act, or (z) an
affiliate of such Purchaser as the term “affiliate” is defined and applied
under Rule 501(b) of Regulation D under the Securities Act.  The transferee must also agree in writing to
be subject to the transfer restrictions set forth in this Section 4.3, shall
represent that it meets the conditions set forth in clause 4.3(b)(ii), and
shall provide the representations and warranties set forth in Section 3.2 of
this Agreement.

(c)           In connection with any transfer of
the Warrant Shares other than pursuant to the Registration Statement, Rule 144
or to the Company, the Company may require the transferor thereof to provide to
the Company an opinion of counsel selected by the transferor and reasonably
acceptable to the Company, the form and substance of which opinion shall be
reasonably satisfactory to the Company, to the effect that such transfer does
not require registration of such transferred Securities under the Securities
Act.  As a condition of transfer, any
such transferee shall agree in writing to be subject to the transfer
restrictions set forth in this Section 4.3 and shall represent that it is
either (A) a non-”U.S. Person” as defined in Regulation S as promulgated under
the Securities Act, or (B) a Person that at the time of transfer is (x) an “accredited
investor” within the meaning of Rule 501(a) of Regulation D under the
Securities Act, (y) a “Qualified Institutional Buyer” within the meaning of
Rule 144A(a)(1) of the Securities Act or (z) 
an affiliate of such Purchaser as the term “affiliate” is defined and
applied under Rule 501(b) of Regulation D under the Securities Act.

4.4           Securities Laws Disclosure;
Publicity.  The Company shall, not
later than the business day following the Closing Date issue a press release
and, within four business days following the Closing Date, file a Current
Report on Form 8-K, in each case reasonably acceptable to the Lead Purchaser,
disclosing the material terms of the transactions contemplated 

 18
 

 

hereby. 
The Company and the Lead Purchaser shall consult with each other in
issuing any press releases with respect to the transactions contemplated
hereby, and neither the Company nor any Purchaser shall issue any such press
release or otherwise make any such public statement without the prior consent
of the Company, with respect to any press release of any Purchaser, or without
the prior consent of the Lead Purchaser, with respect to any press release of
the Company, which consent shall not unreasonably be withheld or delayed,
except if such disclosure is required by law, in which case the disclosing
party shall promptly provide the other party with prior notice of such public
statement or communication. 
Notwithstanding the foregoing, following the Closing Date the Company may
file a Current Report on Form 8-K with the SEC describing the terms of the
transactions contemplated by the Transaction Documents and the occurrence of
the Closing and including as exhibits to such Form 8-K this Agreement
(including the schedules hereto and the names and addresses of the Purchasers),
the Closing Escrow Agreement, the form of Warrants, in the form required by the
Exchange Act and Regulation FD promulgated thereunder. Except as herein
provided, the Company shall not publicly disclose the name of any Purchaser, or
include the name of any Purchaser in any filing with the Commission or any
regulatory agency or Trading Market, without the prior written consent of such
Purchaser, except to the extent such disclosure is required by law or Trading
Market regulations.

4.5           Non-Public Information.  The Company represents and warrants to each
Purchaser that neither it nor any other Person acting on its behalf has
provided the Purchaser or its agents or counsel with any information that
constitutes material non-public information. 
The Company covenants and agrees that neither it nor any other Person
acting on its behalf will provide any Purchaser or its agents or counsel with
any information that constitutes material non-public information, unless prior
thereto such Purchaser shall have executed a written agreement regarding the
confidentiality and use of such information. 
The Company understands and confirms that each Purchaser shall be
relying on the foregoing representation and covenant in effecting transactions
in securities of the Company. Nothing in this Section 4.5 limits Purchasers’
rights with respect to the representations and warranties set forth in Section
3.1.

4.6           Use of Proceeds.  The Company shall use the net proceeds from
the sale of the Shares and the Warrants for general corporate purposes and
working capital.

4.7           Reservation of Common Stock.
As of the date hereof, the Company has reserved, and the Company shall continue
to reserve and keep available at all times, a sufficient number of shares of
Common Stock for the purpose of enabling the Company to issue the Shares
pursuant to this Agreement and the Warrant Shares pursuant to any exercise of
the Warrants.

4.8           Listing of Common Stock.  The Company hereby agrees to use reasonable
best efforts to maintain the listing of the Common Stock on a Trading Market,
and, to the extent that the Common Stock is so listed, to use its best efforts
to list all of the Shares and the Warrant Shares on such Trading Market. The
Company further agrees, if the Company applies to have the Common Stock traded
on any other Trading Market, it will include in such application all of the
Shares and the Warrant Shares, and will take such other action as is necessary
to cause all of the Shares and the Warrant Shares to be listed on such other
Trading Market as promptly as possible. 
The Company will take all action reasonably necessary to continue the
listing and trading of its Common Stock on a Trading Market and will comply in
all respects with the Company’s reporting, filing and other obligations under
the bylaws or rules of the Trading Market. The 

 19
 

 

Company shall use its reasonable best efforts
to obtain, as expeditiously as practical, a confirmation from AMEX that the
Company’s issuance of the Shares and Warrants, the Subsidiary Financing, the
structure of the transactions contemplated by this Agreement and the Subsidiary
Financing, and the pricing of the Securities does not require approval of the
Company’s stockholders.

4.9           Lead Purchaser Compensation.  The Company agrees to honor any adjustments
to the planned distribution or allocation of the Warrants agreed to by the
Purchasers upon receipt of a written, executed agreement documenting any such
arrangement for compensation of the Lead Purchaser; provided, however, the
Company shall not be required to (i) issue any Warrants in excess of the
aggregate amount otherwise required pursuant to this Agreement and (ii) shall
not be required to issue any Warrants or Warrant Shares to a Person who does
not meet the requirement for transfer of such securities pursuant to Section
4.3 of this Agreement.  The Lead
Purchaser shall indemnify and hold harmless the Company, its Affiliates, each
of their officers, directors, partners, employees and agents and their
respective successors and assigns, from and against any and all third party
actions, suits, proceedings, claims, demands, judgments, costs and expenses
(including reasonable legal fees and expenses) or other losses which are caused
by or arise out of any such adjustments to the planned distribution of the
Exchange Warrants by the Company.

4.10         Additional Covenants.

(a)           Except for the Collateral
Transactions, and transactions approved by a majority of the disinterested
members of the Board of Directors, neither the Company nor any of its
Subsidiaries shall enter into any transaction with any (i) director, officer,
employee or holder of more than 5% of the outstanding capital stock of any
class or series of capital stock of the Company or any of its Subsidiaries,
(ii) member of the family of any such person, or (iii) corporation,
partnership, trust or other entity in which any such person, or member of the
family of any such person, is a director, officer, trustee, partner or holder
of more than 5% of the outstanding capital stock thereof.

(b)           The Company shall timely prepare and
file such applications, consents to service of process (but not including a
general consent to service of process) and similar documents and take such
other steps and perform such further acts as shall be required by the
securities law requirements of each jurisdiction where a Purchaser resides, as
indicated on the signature pages hereto, with respect to the sale of the Shares
and Warrants under this Agreement.

(c)           From the date of this Agreement until
the Closing Date, the Company (1) shall conduct its business in all material
respects in the ordinary course, consistent with its past practices, and (2)
shall not issue, sell, or agree to issue or sell, any Common Stock or Common
Stock Equivalents, other than (A) the grant of options to employees,
consultants and directors pursuant to the Company’s equity incentive plans, (B)
the issuance of shares of Common Stock upon the exercise or conversion of
Common Stock Equivalents that are outstanding on the date hereof, (C) in
payment of dividends upon its outstanding Preferred Stock or (D) pursuant to
the terms of the Collateral Transactions.

 20
 

 

ARTICLE V.

MISCELLANEOUS

5.1           Fees and Expenses.  Except as otherwise set forth in this
Agreement, each party shall pay the fees and expenses of its advisers, counsel,
accountants and other experts, if any, and all other expenses incurred by such
party incident to the negotiation, preparation, execution, delivery and
performance of this Agreement; provided,
however, upon Closing of the transactions contemplated herein, the
Company shall reimburse the Lead Purchaser $100,000 for fees and expenses of
attorneys and advisors, including due diligence costs and the negotiation,
preparation and execution of the definitive transaction documents.

5.2           Entire Agreement.  The Transaction Documents, together with the
exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements
and understandings, oral or written, with respect to such matters, which the
parties acknowledge have been merged into such documents, exhibits and
schedules.

5.3           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 (a) one
Trading Day after the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number set forth on the signature
pages attached hereto prior to 2:00 p.m. (San Diego time) on a Trading Day, (b)
two Trading Days after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number set forth on
the signature pages attached hereto on a day that is not a Trading Day or later
than 2:00 p.m. (San Diego time) on any Trading Day, (c) the fourth Trading Day
following the date of shipment, if sent by internationally recognized overnight
courier service, or (d) 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 set forth on the signature pages
attached hereto. The Company shall, concurrently with providing any notice in
the manner set forth in the preceding two sentences, transmit a copy of such
notice (which copy shall not, by itself, be deemed to constitute notice
hereunder)  by email to such email
address as is set forth on the signature pages attached hereto).

5.4           Amendments; Waivers.  No provision of this Agreement may be waived
or amended except in a written instrument signed, in the case of an amendment,
by the Company and Purchasers holding a majority of the Shares or, in the case
of a waiver, by the party against whom enforcement of any such waiver is sought.  No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a
waiver of any other provision, condition or requirement hereof.

5.5           Construction.  The headings herein are for convenience only,
do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.  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.

 21
 

 

5.6           Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and permitted
assigns.  The Company may not assign this
Agreement or any rights or obligations hereunder without the prior written
consent of each Purchaser.  Any Purchaser
may assign any or all of its rights under this Agreement to any Person to whom
such Purchaser assigns or transfers any Securities, to the extent of the
transferability of such Securities, provided such transferee agrees in writing
to be bound, with respect to the transferred Securities, by the provisions
hereof that apply to the “Purchasers”.

5.6           No Third-Party Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective successors and permitted assigns and is
not for the benefit of, nor may any provision hereof be enforced by, any other
Person.

5.7           Further Assurances. Each party
agrees to cooperate fully with the other parties and to execute such further
instruments, documents and agreements and to give such further written
assurances as may be reasonably requested by any other party to better evidence
and reflect the transactions described herein and contemplated hereby and to
carry into effect the intents and purposes of this Agreement, and further
agrees to take promptly, or cause to be taken, all actions, and to do promptly,
or cause to be done, all things necessary, proper or advisable under applicable
law to consummate and make effective the transactions contemplated hereby, to
obtain all necessary waivers, consents and approvals, to effect all necessary
registrations and filings, and to remove any injunctions or other impediments
or delays, legal or otherwise, in order to consummate and make effective the
transactions contemplated by this Agreement for the purpose of securing to the
parties hereto the benefits contemplated by this Agreement.

5.8           Governing Law.  All questions concerning the construction,
validity, enforcement and interpretation of the Transaction Documents shall be
governed by and construed and enforced in accordance with the internal laws of
the State of California, without regard to the principles of conflicts of law
thereof.  Each party hereby irrevocably
submits to the non-exclusive jurisdiction of the state and federal courts
sitting in Los Angeles, California, 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 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 (provided that for deliveries
to addresses outside of the United States, such copy shall be delivered to such
address by internationally recognized overnight courier) 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.  To the extent
permitted by the law applicable to the court in which claims hereunder may be
adjudicated, each of the parties hereby waives all rights to a trial by jury.
If any party shall commence an action or proceeding to enforce any provisions
of the Transaction Documents, then the prevailing party in such action or
proceeding shall be reimbursed by the non-prevailing party for its attorneys’
fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding.

 22
 

 

5.9           Survival.  The representations and warranties herein
shall survive the Closing and delivery of the Shares and Warrant Shares.

5.10         Execution.  This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. 
In the event that any signature is delivered by facsimile transmission,
such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force
and effect as if such facsimile signature page were an original thereof.

5.11         Severability.  If any provision of this Agreement is held to
be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

5.12         Replacement of Securities.  If any certificate or instrument evidencing
any Securities is mutilated, lost, stolen or destroyed, the Company shall issue
or cause to be issued in exchange and substitution for and upon cancellation
thereof, or in lieu of and substitution therefor, a new certificate or
instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and reasonable
indemnity, if requested.  The applicants
for a new certificate or instrument under such circumstances shall also pay any
reasonable third-party costs associated with the issuance of such replacement
Securities.

5.13         Remedies.  In addition to being entitled to exercise all
rights provided herein or granted by law, including recovery of damages, each
of the Purchasers and the Company will be entitled to specific performance
under the Transaction Documents.  The
parties agree that monetary damages may not be adequate compensation for any
loss incurred by reason of any breach of obligations described in the foregoing
sentence and hereby agrees to waive in any action for specific performance of
any such obligation the defense that a remedy at law would be adequate.

5.14         Independent Nature of Purchasers’
Obligations and Rights.  The
obligations of each Purchaser under any Transaction Document are several and
not joint with the obligations of any other Purchaser, and no Purchaser shall
be responsible in any way for the performance of the obligations of any other
Purchaser under any Transaction Document. 
Nothing contained herein or in any Transaction Document, and no action
taken by any Purchaser pursuant 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 or as a group with respect to such obligations or the transactions
contemplated by the Transaction Document. 
Each Purchaser shall be entitled to independently protect and enforce
its rights, including without limitation, the rights arising out of this
Agreement or out of the other Transaction Documents, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose.  Each
Purchaser has been represented by its own separate legal counsel in their
review and negotiation of the Transaction Documents. Each 

 23
 

 

party hereto acknowledges that Fenwick &
West LLP is legal counsel to the Lead Purchaser and not any other Purchaser.
For reasons of administrative convenience only, the Purchasers acknowledge and
agree that they and their respective counsel have chosen to communicate with
the Company through the Lead Purchaser.

(Signature
Page Follows)

 24
 

 

IN WITNESS
WHEREOF, the parties hereto have caused this Securities Purchase Agreement to
be duly executed by their respective authorized signatories as of the date
first indicated above.

 

	
  INOVIO
  BIOMEDICAL CORPORATION

  	
   

  	
  Address for Notice:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Inovio Biomedical Corporation

  
	
  By:

  	
  /s/ Avtar Dhillon

  	
   

  	
   

  	
  Attention: Peter Kies

  
	
  Name:

  	
  Avtar Dhillon, MD

  	
   

  	
   Chief
  Financial Officer

  
	
  Title:

  	
  President and Chief Executive Officer

  	
   

  	
  11494 Sorrento Valley Road

  
	
   

  	
   

  	
  San Diego, California 92121-1334

  
	
   

  	
   

  	
  Telephone: (858) 597-6006

  
	
   

  	
   

  	
  Fax: (858) 597-0451

  
	
   

  	
   

  	
   

  
	
  With a copy to (which shall not constitute notice):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Mark A. Klein, Esq.

  	
   

  	
   

  
	
  Kirkpatrick & Lockhart, Nicholson Graham, LLP

  	
   

  	
   

  
	
  10100 Santa Monica Blvd. 7th Floor

  	
   

  	
   

  
	
  Los Angeles, CA 99067

  	
   

  	
   

  
						

 

REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK

(Signature Pages for Purchasers Follow)

 25

 

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE
AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this
Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above.

	
  Name of Investing Entity:

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Investing
  Entity:

  	
  /s/ by investors listed on attached schedule

  
	
   

  
	
  Name of Authorized Signatory:

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  
	
   

  
	
  Email Address of Authorized Entity:

  	
   

  
						

 

Address for Notice
of Investing Entity:

 

 

Address for
Delivery of Securities for Investing Entity (if not same as above):

 

 

Subscription
Amount: $               

Shares:             

Warrant Shares:             

[Omnibus Signature Page to
Inovio Biomedical Corporation Securities Purchase Agreement]

 

 

 

SCHEDULE 2.1

LIST OF PURCHASERS

 

	
  Name, Address, Phone/Fax Number, and

  Email of Purchaser, and Registration

  Instructions

  	
   

  	
  Copies of Notices to

  	
   

  	
  Common Stock

  Issued

  	
   

  	
  Common Stock

  Underlying Warrants

  	
   

  	
  Total

  Subscription

  
	
  Quintet Holdings LLC

  c/o Venture TDF Pte Ltd

  1 Scotts Road, #18-06 Shaw Centre,

  Singapore 228208

  Attention: Symonne Lim

  Fax: +(65) 6887 0535

  Email: quintetllc@gmail.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350
Email: dmichaels@Fenwick.com

  	
   

  	
  102,880

  	
   

  	
  36,008

  	
   

  	
  US$250,000

  
	
  Green Mountains Investments Ltd

  101B-2 Telok Ayer Street #03-02

  Singapore 068574

  Attention: Joel Lin

  Fax: +(65) 6399 2655

  Email: joel@gminvestments.net

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  102,880

  	
   

  	
  36,008

  	
   

  	
  US$250,000

  
	
  Chong Chin Cheong

  167A Hillcrest Road

  Singapore 289038

  Fax: +(65) 6468 0348

  Email: chincheong@gs-excel.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  164,609

  	
   

  	
  57,613

  	
   

  	
  US$400,000

  
	
  Goh Kai Kui

  116 Pasir Panjang Road

  Singapore 118540

  Fax: +(65) 6476 6075

  Email: kkgoh@gjh.com.sg

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  164,609

  	
   

  	
  57,613

  	
   

  	
  US$400,000

  
	
  Yvonne Lau Yee Wan

  4 Da Silva Lane

  Singapore 549729

  Fax: +(65) 6383 8628

  Email: yvonne-kwek@mediaring.com
 Yvonne_kwek@yahoo.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  123,456

  	
   

  	
  43,209

  	
   

  	
  US$300,000

  
	
  Choi Keok Bang

  26 Watten Heights

  Singapore 287458

  Fax: +(65) 6334 8456

  Email: rickchoi68@hotmail.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  102,880

  	
   

  	
  36,008

  	
   

  	
  US$250,000

  

 

 

 

	
  Name, Address, Phone/Fax Number, and

  Email of Purchaser, and Registration

  Instructions

  	
   

  	
  Copies of Notices to

  	
   

  	
  Common Stock

  Issued

  	
   

  	
  Common Stock

  Underlying Warrants

  	
   

  	
  Total

  Subscription

  
	
  James Toh Ban Leng

  22C Cornwell Gardens

  Singapore 269684

  Fax: +(65) 6223 6216

  Email: tohjamer@yahoo.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  102,880

  	
   

  	
  36,008

  	
   

  	
  US$250,000

  
	
  Beh Han Khoon Samuel

  12 Mount Elizabeth #14-01 Elizabeth Towers

  Singapore 228511

  Fax: +(65) 6861 7575

  Email: beh.samuel@klenco-asia.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  102,880

  	
   

  	
  36,008

  	
   

  	
  US$250,000

  
	
  Boscombe Holdings Limited

  10 Eunos Road 8

  #05-33A Singapore Post Centre

  Singapore 408600

  Attention: Mr Lim Ho Kee

  Fax: +(65) 6745 4115

  Email: hokee@singnet.com.sg

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  308,641

  	
   

  	
  108,024

  	
   

  	
  US$750,000

  
	
  Lee Kim Bock

  9 Cornwall Gardens

  Singapore 269638

  Fax: +(65) 6484 6037

  Email: aware@starhub.net.sg

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  102,880

  	
   

  	
  36,008

  	
   

  	
  US$250,000

  
	
  Goh Yang Chye

  20 Chuan Garden

  Sinapore 558538

  Fax: +(65) 6535 3997

  Email: yangchye@gyc.com.sg

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  164,609

  	
   

  	
  57,613

  	
   

  	
  US$400,000

  
	
  Chew Hua Seng

  11 Beach Road #01-02

  Singapore 189675

  Fax: +(65) 6338 0306

  Email: CHEWhuaseng@raffles-

  education-corporation.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  205,761

  	
   

  	
  72,016

  	
   

  	
  US$500,000

  

 

 

 

	
  Name, Address, Phone/Fax Number, and

  Email of Purchaser, and Registration

  Instructions

  	
   

  	
  Copies of Notices to

  	
   

  	
  Common Stock

  Issued

  	
   

  	
  Common Stock

  Underlying Warrants

  	
   

  	
  Total

  Subscription

  
	
  Michael Lim Chun Leng

  2 Oak Avenue

  Singapore 276763

  Fax: +(65) 6738 1678

  Email: drmlim88@shsccentre.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  102,880

  	
   

  	
  36,008

  	
   

  	
  US$250,000

  
	
  Chuan Hup Holdings Limited

  390 Jalan Ahmad Ibrahim

  Singapore 629155

  Attention: Terence Peh

  Fax: +(65) 6268 1937

  Email: terencepeh@chuanhup.com.sg

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  823,045

  	
   

  	
  288,065

  	
   

  	
  US$2,000,000

  
	
  Broadven Ltd.

  80 Raffles Place

  #51-02 UOB Plaza 1

  Singapore 048624

  Attention: Ng Tee Khiang

  Fax: +(65) 6536 8129

  Email: ntk@broadven.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  102,881

  	
   

  	
  36,008

  	
   

  	
  $250,000.83

  

 

 

 

	
  Name, Address, Phone/Fax Number, and

  Email of Purchaser, and Registration

  Instructions

  	
   

  	
  Copies of Notices to

  	
   

  	
  Common Stock

  Issued

  	
   

  	
  Common Stock

  Underlying Warrants

  	
   

  	
  Total

  Subscription

  
	
  Capital Data Investments Limited

  c/o 80 Raffles Place

  #51-02 UOB Plaza 1

  Singapore 048624

  Attention: Frank Sin Fook Hoong

  Fax: +(65) 6536 8129

  Email: franksin@broadven.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  131,934

  	
   

  	
  46,176

  	
   

  	
  US$320,600

  
	
  Koh Boon Hwee

  27 Queen Astrid Park

  Singapore 266832

  Tel: +(65) 6238 2011

  Fax: +(65) 6221 8026

  Email: boonhwee@wuthelam.com.sg

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  102,880

  	
   

  	
  36,008

  	
   

  	
  US$249,998.40

  
	
  Ng Tee Khiang

  c/o 80 Raffles Place

  #51-02 UOB Plaza 1

  Singapore 048624

  Fax: +(65) 6536 8129

  Email: ntk@broadven.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  752,841

  	
   

  	
  263,494

  	
   

  	
  US$1,829,403.63

  
	
  Hoon Pang Heng, Joanna

  17B Leedon Parks

  Singapore 267895

  Fax: +(65) 6789 9933

  Email: joanna_hoon@oceanskyintl.com

  	
   

  	
  Fenwick & West LLP

  Embarcadero Center West

  275 Battery Street

  San Francisco, CA 94111

  Attn: David Michaels, Esq.

  Tel: (415) 875-2455

  Fax: (415) 281-1350

  Email: dmichaels@Fenwick.com

  	
   

  	
  205,761

  	
   

  	
  72,016

  	
   

  	
  US$500,000

  
	
  Alpha Capital Anstalt

  Pradafont 7

  Fursteatums 9490

  Vaduz Liechenstein

  Attention: Konrad Ackerman, Director

  Fax:011-423-232-3196

  c/o LH Financial

  160 Central Park South

  Suite 2701

  New York, York

  10019

  Attention: Joe Hammer

  Fax: 212-586-8244

  Email: joe@lhfin.com

  	
   

  	
  LH Financial 160
  Central Park South Suite 2701 New York, York 10019 Attention: Joe Hammer

  Tel: 212-586-8224

  Ext. 106

  Fax: 212-586-8244

  Email: joe@lhfin.com

  	
   

  	
  102,880

  	
   

  	
  36,008

  	
   

  	
  $250,000

  
	
  Total

  	
   

  	
   

  	
   

  	
  4,074,067

  	
   

  	
  1,425,919

  	
   

  	
  US$9,900,002.86

  

 

 

 

SCHEDULE 3.1

DISCLOSURE SCHEDULES

Subsidiaries
- Schedule 3.1(a)

Inovio
Biomedical Corporation Subsidiaries — Schedule 3.1(a):

·                  Genetronics,
Inc. ( Wholly-owned subsidiary, incorporated in California)

·                  Inovio
AS (Wholly-owned subsidiary, incorporated in Norway)

·                  Inovio,
Inc. (Wholly-owned subsidiary of Inovio AS, incorporated in Delaware)

Preemptive
Rights - Schedule 3.1(g)

Preemptive Rights — Schedule 3.1(g):

No stockholders of
the Company possess any preemptive rights in respect of the Common Stock or
Warrants, or Warrant Shares to be issued upon exercise of the Warrants, except
for the participation rights provided in Section 10 of the Company’s
certificate of designations (the “Certificate of Designations”), rights and
preferences of the Series C cumulative convertible preferred stock (the “Preferred
Stock”). 

Pursuant
to the provisions of Section 10 of the Certificate of Designations, the Company
has notified each stockholder of its outstanding Preferred Stock of such
stockholder’s right to participate in the transaction subject of the Agreement.
In response to that Notice, the stockholders have:

1.      Declined to
participate and provided the Company with a writing expressly so indicating;

2.      Have not responded to
the Company’s notice and 10 days have elapsed since such non-responding holder
was given notice; or

3.      Notified the Company
that they are participating in the transaction and either (i) using cash to
purchase shares of Common Stock and warrants to purchase shares of common stock
on the same terms as being offered pursuant to the Agreement, or (ii)
exchanging their shares of Preferred Stock for shares of Common Stock and
warrants to purchase shares of common stock on the same terms as being offered
pursuant to the Agreement.

Holders
using Preferred Stock (and the series thereof) to obtain shares of Common Stock
and warrants to purchase Common Stock on the terms same terms as being offered
pursuant to the Agreement are set forth below. 
All of the listed Preferred Stockholders below have chosen to exchange
their shares, and will do so at a rate based on the liquidation
preference of $10,000 of the Preferred Shares to be exchanged, plus any accrued
and unpaid dividends thereon.

 

Name of
Holder and Number of Shares of Preferred Stock to Be Used

	
  

  	
   

  	
  Series C

  	
   

  
	
  Alpha Capital

  	
   

  	
  25

  	
   

  
	
  Pharmaceutical
  Medical Tech Fund

  	
   

  	
  50

  	
   

  
	
  Rennes Fondation

  	
   

  	
  40.12

  	
   

  
	
  Estimated
  totals

  	
   

  	
  115.12

  	
   

  

 

Material
Changes - Schedule 3.1(i)

Material Changes — Schedule 3.1(i):

As a
result of the transactions contemplated by the Agreement, the Company expects
to record a non-cash imputed dividend charge on its financial statements in
connection with the use by any existing holders of the Company’s Series C
Cumulative Convertible Preferred Stock (“Preferred Stock”) to purchase Shares
and Warrant Shares in the Agreement in accordance with the rights of
participation specified in the Company’s Certificate of Designations applicable
to such series of Preferred Stock. This imputed dividend charge will be calculated
using guidance contained in Emerging Issues Task Force (“EITF”) Issue No.
00-27, Application of Issue No. 98-5 to Certain
Convertible Instruments and will depend on the number of shares of
Preferred Stock so used by the holders thereof so participating.

Intellectual Property - Schedule 3.1(o)

Royalties and Fees Payable by Seller — Schedule
3.1(o):

RMR
— a royalty-bearing license to patented technology is payable when a commercial
product is being sold which has not yet occurred.  When it occurs, payment is due annually.  Royalty rate is 0.65% if the annual net sales
of such product once product sales commence and 6.5% of sublicensing fees paid
by a third party to Genetronics for a sublicense to any licensed patent or
group of patents.

Sphergen
— Annual license maintenance fees of 65,000 Euros within 30 days of the first
and second anniversary, and 90,000 Euros within 30 days of the third
anniversary and every year thereafter. 
Inovio shall also pay a royalty when a commercial product is being sold
which has not yet occurred.  Royalty rate
is 6% of annual net sales or sublicense income for products to be used in
delivering substances directly to tumor cells and 3% of annual net sales for
products to be used in delivering nucleic acids to other than tumor cells.

University
of South Florida - a royalty-bearing license to patented technology is payable
when a commercial product is being sold which has not yet occurred.  When it occurs payment is due quarterly.  Royalty rate is 3% net sales if sold by Inovio,
15% or all royalty received from sales by sublicensees.

 

Products
are those products which rely on claims of US Patent No. 5,702,359 for FTO or
its continuation patents.  Term of the
Agreement is for life of agreement which is until one party or the other seeks
termination, or by default life of the patents.

Brokers
- Schedule 3.1(t)

Brokers —
Schedule 3.1(t):

Brokerage Fees or Commissions

The Company and Asia Life Venture Consulting Inc. (“ALVC”)
have agreed that upon successful completion of the transactions contemplated by
the Agreement, Inovio will pay a success fee equal to 5% of any cash proceeds
received by Inovio or any Asia affiliate, plus ALVC’s reasonable fees and
expenses.

 

 

 

EXHIBIT A

FORM OF WARRANT

 

 

EXHIBIT B

CLOSING ESCROW AGREEMENT

 

 

EXHIBIT C

FORM OF LEGAL OPINION FROM COMPANY COUNSEL

 

 

EXHIBIT D

FORM OF SUBSIDIARY FINANCING

SECURITIES PURCHASE AND EXCHANGE AGREEMENTExhibit
4.2

THIS WARRANT MAY NOT BE
TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF UNLESS SUCH TRANSFER (I)
COMPLIES WITH STATE AND FEDERAL SECURITIES LAWS, (II) IS TO A NON-”U.S. PERSON”
AS DEFINED IN REGULATION S AS PROMULGATED UNDER THE SECURITIES ACT, AND (III)
IS ONLY TO A PERSON THAT AT THE TIME OF TRANSFER QUALIFIES AS (X) AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF RULE 501(A) OF REGULATION D UNDER THE
SECURITIES ACT, (Y) A “QUALIFIED INSTITUTIONAL BUYER” WITHIN THE MEANING OF
RULE 144A(A)(1) OF THE SECURITIES ACT OR (Z) TO AN AFFILIATE OF SUCH PURCHASER
AS THE TERM “AFFILIATE” IS DEFINED AND APPLIED UNDER RULE 501(B) OF REGULATION
D UNDER THE SECURITIES ACT.

Warrant No.               

COMMON STOCK
PURCHASE WARRANT

To Purchase [                ] Shares
of Common Stock of

INOVIO BIOMEDICAL
CORPORATION

THIS IS TO CERTIFY
THAT                             ,
or registered assigns (the “Holder”), is entitled, during the Exercise
Period (as hereinafter defined), to purchase from Inovio Biomedical Corporation,
a Delaware corporation (the “Company”), the Warrant Stock (as
hereinafter defined and subject to adjustment as provided herein), in whole or
in part, at a purchase price of $2.87 per share, all on and subject to the
terms and conditions hereinafter set forth.

1.             Definitions.  As used in this Warrant, the following terms
have the respective meanings set forth below:

“Appraised
Value” means, in respect of any share of Common Stock on any date herein
specified, the fair saleable value of such share of Common Stock (determined
without giving effect to the discount for (i) a minority interest or (ii) any
lack of liquidity of the Common Stock or to the fact that the Company may have
no class of equity registered under the Exchange Act) as of the last day of the
most recent fiscal month ending prior to such date specified, based on the
value of the Company on a fully-diluted basis, as determined by a nationally
recognized investment banking firm selected by the Company’s Board of Directors
and having no prior relationship with the Company.

“Business Day”
means any day except Saturday, Sunday and any day that shall be a legal holiday
or a day on which banking institutions in the State of California generally are
authorized or required by law or other government actions to close.

“Change of
Control” means the (i) acquisition by an individual or legal entity or
group (as set forth in Section 13(d) of the Exchange Act) of more than one-half
of the voting rights or equity interests in the Company; or (ii) sale, conveyance,
or other disposition of all or substantially all of the assets, property or
business of the Company or (iii) the merger into or 

 

consolidation with any
other corporation (other than a wholly owned subsidiary corporation where the
Company is the surviving entity) or (iv) effectuation of any transaction or
series of related transactions where holders of the Company’s voting securities
prior to such transaction or series of transactions fail to continue to hold at
least 50% of the voting power of the Company.

“Closing Date”
means the date on which this Warrant is duly executed by the Company and
delivered to the Holder hereof.

“Commission”
means the Securities and Exchange Commission or any other federal agency then
administering the Securities Act and other federal securities laws.

“Common Stock”
means (except where the context otherwise indicates) the Common Stock, $0.001
par value per share, of the Company as constituted on the Closing Date, and any
capital stock into which such Common Stock may thereafter be changed or
converted, and shall also include shares of common stock of any successor or
acquiring corporation (and/or Other Property) received by or distributed to the
holders of Common Stock of the Company in the circumstances contemplated by Section
4.4.

“Current Market
Price” means, in respect of any share of Common Stock on any date herein
specified,

(1)           if there shall not then be a public
market for the Common Stock, the higher of

(a) the book value
per share of Common Stock at such date, and

(b) the Appraised
Value per share of Common Stock at such date,

or

(2)           if there shall then be a public
market for the Common Stock, the higher of (x) the book value per share of
Common Stock at such date, and (y) the average of the daily market prices for the
20 consecutive Trading Days immediately before such date. The daily market
price (the “Daily Market Price”) for each such Trading Day shall be (i)
the closing price on such day on the principal stock exchange (including
Nasdaq) on which such Common Stock is then listed or admitted to trading, or
quoted, as applicable, (ii) if no sale takes place on such day on any such
exchange, the last reported closing price on such day as officially quoted on
any such exchange (including Nasdaq), (iii) if the Common Stock is not then
listed or admitted to trading on any stock exchange, the last reported closing
bid price on such day in the over-the-counter market, as furnished by the
National Association of Securities Dealers Automatic Quotation System or the
National Quotation Bureau, Inc., (iv) if neither such corporation at the time
is engaged in the business of reporting such prices, as furnished by any
similar firm then engaged in such business, or (v) if there is no such firm, as
furnished by any member of the NASD selected mutually by the Holder and the
Company or, if they cannot agree upon such selection, as selected by two such
members of the NASD, one of which shall be selected by the Holder and one of
which shall be selected by the Company.

“Current
Warrant Price” means, in respect of a share of Common Stock at any date
herein specified, the price at which a share of Common Stock may be purchased
pursuant to this 

 2
 

 

Warrant on such date.
Until the Current Warrant Price is adjusted pursuant to the terms herein, the
initial Current Warrant Price shall be $2.87 per share of Common Stock.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, or any similar federal
statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect from time to time.

“Exercise
Period” means the period during which this Warrant is exercisable pursuant
to Section 2.1.

“Expiration
Date” means •, 2011[Insert date five years after date of issuance of
this Warrant].

“NASD”
means the National Association of Securities Dealers, Inc., or any successor
corporation thereto.

“Other Property”
has the meaning set forth in Section 4.4.

“Person”
means any individual, sole proprietorship, partnership, joint venture, trust,
incorporated organization, association, corporation, limited liability company,
institution, public benefit corporation, entity or government (whether federal,
state, county, city, municipal or otherwise, including, without limitation, any
instrumentality, division, agency, body or department thereof).

“Registration
Statement” shall have the meaning set forth in the Securities Purchase
Agreement.

 “Securities Act” means the Securities
Act of 1933, as amended, or any similar federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at
the time.

“Securities
Purchase Agreement” means that certain Securities Purchase Agreement dated
as of September 15, 2006 among the
Company and the other parties named therein, pursuant to which this Warrant was
originally issued.

“Trading Day”
means any day on which the primary market on which shares of Common Stock are
listed is open for trading.

“Transfer”
means any disposition of any Warrant or Warrant Stock or of any interest in
either thereof, which would constitute a sale thereof within the meaning of the
Securities Act.

“Warrants”
means this Warrant and all warrants issued upon transfer, division or
combination of, or in substitution for, any thereof. All Warrants shall at all
times be identical as to terms and conditions and date, except as to the number
of shares of Common Stock for which they may be exercised.

“Warrant Price”
means an amount equal to (i) the number of shares of Common Stock being
purchased upon exercise of this Warrant pursuant to Section 2.1, multiplied by
(ii) the 

 3
 

 

Current Warrant Price.

“Warrant Stock”
means the [              ]  shares of Common Stock to be purchased upon
the exercise hereof, subject to adjustment as provided herein.

2.             Exercise of Warrant.

2.1.          Manner of Exercise. From and
after the Closing Date, and until 5:00 P.M., California time, on the Expiration
Date (the “Exercise Period”), the Holder may exercise this Warrant, on
any Business Day, for all or any part of the number of shares of Warrant Stock
purchasable hereunder.

In order to
exercise this Warrant, in whole or in part, the Holder shall deliver to the
Company at its principal office or at the office or agency designated by the
Company pursuant to Section 12, (i) a written notice of Holder’s election to exercise
this Warrant, which notice shall specify the number of shares of Warrant Stock
to be purchased, (ii) payment of the Warrant Price as provided herein and (iii)
this Warrant. Such notice shall be substantially in the form of the
subscription form appearing at the end of this Warrant as Exhibit A duly
executed by the Holder or its agent or attorney in fact. Upon receipt thereof,
the Company shall, as promptly as practicable, and in any event within three
Business Days thereafter, execute or cause to be executed and deliver or cause
to be delivered to the Holder a certificate or certificates representing the
aggregate number of full shares of Warrant Stock issuable upon such exercise,
together with cash in lieu of any fraction of a share, as hereinafter provided.
The stock certificate or certificates so delivered shall be, to the extent
possible, in such denomination or denominations as the Holder shall request in
the notice and shall be registered in the name of the Holder or such other name
as shall be designated in the notice. This Warrant shall be deemed to have been
exercised and such certificate or certificates shall be deemed to have been
issued, and the Holder or any other Person so designated to be named therein
shall be deemed to have become a Holder of record of such shares for all
purposes, as of the date when the notice, together with the payment of the
Warrant Price and this Warrant, is received by the Company as described above.
If this Warrant shall have been exercised in part, the Company shall, at the
time of delivery of the certificate or certificates representing Warrant Stock,
deliver to the Holder a new Warrant evidencing the rights of the Holder to
purchase the unpurchased shares of Common Stock called for by this Warrant,
which new Warrant shall in all other respects be identical with this Warrant,
or at the request of the Holder, appropriate notation may be made on this
Warrant and the same returned to the Holder.

Payment of the
Warrant Price may be made at the option of the Holder by: (i) certified or
official bank check payable to the order of the Company or (ii) wire transfer
to the account of the Company.  All
shares of Common Stock issuable upon the exercise of this Warrant pursuant to
the terms hereof shall be validly issued and, upon payment of the Warrant
Price, shall be fully paid and nonassessable.

2.2           Mandatory Exercise.  The Company may request that the Holder
exercise this Warrant (the “Mandatory Exercise”) within thirty (30)
Business Days after the date of the Mandatory Exercise Notice (as defined
below) by delivering a written notice to the Holder at such address as the
Holder shall have provided to the Company in writing pursuant to 

 4
 

 

Section 14.2 hereof (the “Mandatory
Exercise Notice”); provided that (i) the Daily Market Price for twenty (20)
of the thirty (30) Trading Days ending on the date of the Mandatory Exercise
Notice (as defined below), is equal to or greater than 250% of the Current
Warrant Price, (ii) sufficient shares of Common Stock of the Company are authorized
and reserved for issuance upon the full exercise of this Warrant, (iii) the
Registration Statement shall be effective, current and available for use by the
Holder in connection with sales of the Warrant Stock at all times from the date
of the Mandatory Exercise Notice through the Mandatory Exercise Termination
Date, and (iv) the Company is not in default of any material provision of any
Transaction Document (as defined in the Securities Purchase Agreement).  The Mandatory Exercise Notice shall set forth
the Current Warrant Price and the Daily Market Price for each of the previous
twenty (20) Trading Days immediately preceding the date of the Mandatory
Exercise Notice and shall state that this Warrant may be exercised in
conformity with this Section 2.2 within thirty (30) Business Days.  The last day of such thirty-Business Day
period is hereinafter referred to as the “Mandatory Exercise Termination
Date”.  To the extent the Holder
fails to exercise this Warrant by 5:00 pm California time of the Mandatory Exercise
Termination Date, then (i) this Warrant shall be deemed terminated for all
purposes and (ii) the Holder shall deliver to the Company this Warrant marked “cancelled”
(but the failure of the Holder to deliver this Warrant to the Company for
cancellation shall not affect the termination of this Warrant as of the
Mandatory Exercise Termination Date).

2.3.          Fractional Shares. The Company
shall not be required to issue a fractional share of Common Stock upon exercise
of any Warrant. As to any fraction of a share which the Holder of one or more
Warrants, the rights under which are exercised in the same transaction, would
otherwise be entitled to purchase upon such exercise, the Company shall pay an
amount in cash equal to the Current Market Price per share of Common Stock on
the date of exercise multiplied by such fraction.

3.             Transfer, Division and
Combination.

3.1.          Transfer. The Warrants and the
Warrant Stock shall be transferable, subject to compliance with all applicable
laws, including, but not limited to the federal and state securities laws and
the following limitations.  This Warrant
may not be transferred, assigned or otherwise disposed of unless such transfer
(i) is to a non-”U.S. person” as defined in Regulation S as promulgated under
the Securities Act, and (ii) is only to a person that at the time of transfer
qualifies as (x) an “accredited investor” within the meaning of Rule 501(a) of
Regulation D under the Securities Act, (y) a “qualified institutional buyer”
within the meaning of Rule 144A(a)(1) of the Securities Act or (z) to an
affiliate of such the Holder as the term “affiliate” is defined and applied
under Rule 501(b) of Regulation D under the Securities Act.   Any transferee of this Warrant must also
agree in writing to be subject to the same obligations and makes the same
representations as the Holder did pursuant to the Securities Purchase Agreement
at the time of the Holder’s initial acquisition of the Warrant.  Transfer of this Warrant and all rights
hereunder, in whole or in part, in accordance with the foregoing provisions,
shall be registered on the books of the Company to be maintained for such
purpose, upon surrender of this Warrant at the principal office of the Company
referred to in Section 2.1 or the office or agency designated by the Company
pursuant to Section 12, together with a written assignment of this Warrant
substantially in the form of Exhibit B hereto duly executed by the
Holder or its agent or attorney and funds sufficient to pay any transfer taxes
payable upon the making of such transfer. Upon 

 5
 

 

such surrender and, if
required, such payment, the Company shall execute and deliver a new Warrant or
Warrants in the name of the assignee or assignees and in the denomination
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. Following a transfer that complies with
the requirements of this Section 3.1, the Warrant may be exercised by a new
Holder for the purchase of shares of Common Stock regardless of whether the
Company issued or registered a new Warrant on the books of the Company.

In connection with
any transfer of the Warrant Stock other than pursuant to the Registration
Statement, Rule 144 or to the Company, the Company may require the transferor
thereof to provide to the Company an opinion of counsel selected by the
transferor and reasonably acceptable to the Company, the form and substance of
which opinion and shall be reasonably satisfactory to the Company, to the
effect that such transfer does not require registration of such transferred
Warrant Stock under the Securities Act. 
As a condition of transfer, any such transferee shall agree in writing
to be subject to the same obligations and makes the same representations as the
Holder did pursuant to the Securities Purchase Agreement at the time of the
Holder’s initial acquisition of the Warrant Stock.

3.2.          Restrictive Legends. To the
extent the Warrant is exercised at such time as the Registration is not
effective, current and available for use by the Holder in connection with the
sale of all shares of the Common Stock issuable pursuant to this Warrant, each
certificate for Warrant Stock initially issued upon the exercise of this Warrant,
and each certificate for Warrant Stock issued to any subsequent transferee of
any such certificate, unless, in each case, such Warrant Stock is eligible for
resale without registration pursuant to Rule 144(k) under the Exchange Act,
shall be stamped or otherwise imprinted with a legend in substantially the
following form:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED, AND MAY NOT BE
OFFERED, SOLD, ASSIGNED OR TRANSFERRED, IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER SAID ACT OR UNLESS THE COMPANY HAS RECEIVED AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION
UNDER SAID ACT IS NOT REQUIRED.”

3.3.          Division and Combination; Expenses;
Books. This Warrant may be divided or combined with other Warrants upon
presentation hereof at the aforesaid office or agency of the Company, together
with a written notice specifying the names and denominations in which new
Warrants are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 3.1 as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new
Warrant or Warrants in exchange for the Warrant or Warrants to be divided or
combined in accordance with such notice. The Company shall prepare, issue and
deliver at its own expense the new Warrant or Warrants under this Section 3.
The Company agrees to maintain, at its aforesaid office or agency, books for
the registration and the registration of transfer of the Warrants.

4.             Adjustments. The number of
shares of Common Stock for which this Warrant is 

 6
 

 

exercisable, and the
price at which such shares may be purchased upon exercise of this Warrant,
shall be subject to adjustment from time to time as set forth in this Section
4. The Company shall give the Holder notice of any event described below which
requires an adjustment pursuant to this Section 4 in accordance with Sections
5.1 and 5.2.

4.1.          Stock Dividends, Subdivisions and
Combinations; Reclassifications.

(a)           If at any time while this Warrant is
outstanding the Company shall:

(i)            declare a dividend or make a
distribution on its outstanding shares of Common Stock in shares of Common
Stock,

(ii)           subdivide its outstanding shares of
Common Stock into a larger number of shares of Common Stock, or

(iii)          combine its outstanding shares of
Common Stock into a smaller number of shares of Common Stock, then:

(1)           the number of shares of Common Stock
acquirable upon exercise of this Warrant immediately after the occurrence of
any such event shall be adjusted to equal the number of shares of Common Stock
which a record holder of the same number of shares of Common Stock that would
have been acquirable under this Warrant immediately prior to the record date
for such dividend or distribution or the effective date of such subdivision or
combination would own or be entitled to receive after such record date or the
effective date of such subdivision or combination, as applicable, and

(2)           the Current Warrant Price shall be
adjusted to equal:

(A)          the Current Warrant Price in effect at
the time of the record date for such dividend or distribution or of the
effective date of such subdivision or combination, multiplied by the number of
shares of Common Stock into which this Warrant is exercisable immediately prior
to the adjustment, divided by

(B)           the number of shares of Common Stock
into which this Warrant is exercisable immediately after such adjustment.

Any adjustment
made pursuant to clause (i) of this paragraph shall become effective
immediately after the record date for the determination of stockholders
entitled to receive such dividend or distribution, and any adjustment pursuant
to clauses (ii) or (iii) of this paragraph shall become effective immediately
after the effective date of such subdivision or combination.

(b)           If the Company, by reclassification
of securities or otherwise, shall change any of the securities as to which
purchase rights under this Warrant exist into the same or a different number of
securities of any other class or classes or other assets or property, this
Warrant shall thereafter represent the right to acquire such number and kind of
securities or other assets or property as would have been issuable as the
result of such change with respect to the securities 

 7
 

 

that were subject to the
purchase rights under this Warrant immediately prior to such reclassification
or other change and the Current Warrant Price therefore shall be appropriately
adjusted, all subject to further adjustment as provided in this
Section 4.  In any such
reclassification, appropriate provision shall be made with respect to the
rights and interests of the Holder to the end that the provisions hereof (including,
without limitation, provisions for the number of securities purchasable or
receivable upon the exercise of this Warrant) shall thereafter be applicable,
as nearly as may be, in relation to any securities or other assets or property
thereafter deliverable upon the exercise of this Warrant.

4.2.          Certain Other Distributions. If
at any time while this Warrant is outstanding the Company shall cause the
holders of its Common Stock to be entitled to receive any dividend or other
distribution of:

(i)            cash,

(ii)           any evidences of its indebtedness,
any shares of stock of any class or any other securities or property or assets
of any nature whatsoever (other than cash or additional shares of Common Stock
as provided in Section 4.1 hereof), or

(iii)          any warrants or other rights to
subscribe for or purchase any evidences of its indebtedness, any shares of
stock of any class or any other securities or property or assets of any nature
whatsoever, then:

(1)           the number of shares of Common Stock
acquirable upon exercise of this Warrant shall be adjusted to equal the product
of the number of shares of Common Stock acquirable upon exercise of this
Warrant immediately prior to the record date for such dividend or distribution,
multiplied by a fraction (x) the numerator of which shall be the Current
Warrant Price per share of Common Stock at the date of taking such record and
(y) the denominator of which shall be such Current Warrant Price minus the
amount allocable to one share of Common Stock of any such cash so distributable
and of the fair value (as determined in good faith by the Board of Directors of
the Company) of any and all such evidences of indebtedness, shares of stock,
other securities or property or warrants or other subscription or purchase
rights so distributable; and

(2)           the Current Warrant Price in effect
immediately prior to the record date fixed for determination of stockholders
entitled to receive such distribution shall be adjusted to equal (x) the
Current Warrant Price multiplied by the number of shares of Common Stock
acquirable upon exercise of this Warrant immediately prior to the adjustment,
divided by (y) the number of shares of Common Stock acquirable upon exercise of
this Warrant immediately after such adjustment. A reclassification of the
Common Stock (other than a change in par value, or from par value to no par
value or from no par value to par value) into shares of Common Stock and shares
of any other class of stock shall be deemed a distribution by the Company to
the holders of its Common Stock of such shares of such other class of stock within
the meaning of this Section 4.2 and, if the outstanding shares of Common Stock
shall be changed into a larger or smaller number of shares of Common Stock as a
part of such reclassification, such change shall be deemed a subdivision or
combination, as the case may be, of the 

 8
 

 

outstanding shares of Common Stock within the meaning
of Section 4.1.

4.3.          Other Provisions Applicable to
Adjustments. The following provisions shall be applicable to the making of
adjustments of the number of shares of Common Stock into which this Warrant is
exercisable and the Current Warrant Price provided for in Section 4:

(a) When
Adjustments to Be Made. The adjustments required by Section 4 shall be made
whenever and as often as any specified event requiring an adjustment shall
occur, except that any that would otherwise be required may be postponed
(except in the case of a subdivision or combination of shares of the Common
Stock, as provided for in Section 4.1) up to, but not beyond the date of
exercise if such adjustment either by itself or with other adjustments not
previously made adds or subtracts less than 1% of the shares of Common Stock
into which this Warrant is exercisable immediately prior to the making of such
adjustment. Any adjustment representing a change of less than such minimum
amount (except as aforesaid) which is postponed shall be carried forward and
made as soon as such adjustment, together with other adjustments required by
this Section 4 and not previously made, would result in a minimum adjustment or
on the date of exercise. For the purpose of any adjustment, any specified event
shall be deemed to have occurred at the close of business on the date of its
occurrence.

(b)  Fractional Interests. In computing
adjustments under this Section 4, fractional interests in Common Stock shall be
taken into account to the nearest 1/100th of a share.

(c)  When Adjustment Not Required. If the
Company undertakes a transaction contemplated under this Section 4 and as a
result takes a record of the holders of its Common Stock for the purpose of
entitling them to receive a dividend or distribution or subscription or
purchase rights or other benefits contemplated under this Section 4 and shall,
thereafter and before the distribution to stockholders thereof, legally abandon
its plan to pay or deliver such dividend, distribution, subscription or
purchase rights or other benefits contemplated under this Section 4, then
thereafter no adjustment shall be required by reason of the taking of such
record and any such adjustment previously made in respect thereof shall be
rescinded and annulled.

(d)  Escrow of Stock. If after any property
becomes distributable pursuant to Section 4 by reason of the taking of any
record of the holders of Common Stock, but prior to the occurrence of the event
for which such record is taken, the Holder exercises the Warrant during such
time, then such Holder shall continue to be entitled to receive any shares of
Common Stock issuable upon exercise hereunder by reason of such adjustment and
such shares or other property shall be held in escrow for the Holder by the
Company to be issued to the Holder of this Warrant upon and to the extent that
the event actually takes place. Notwithstanding any other provision to the
contrary herein, if the event for which such record was taken fails to occur or
is rescinded, then such escrowed shares shall be canceled by the Company and
escrowed property returned to the Company.

4.4.          Change of Control. If there
shall occur a Change of Control, then the Holder of this Warrant shall be
entitled, at such Holder’s option, either:

(a) upon request
of Holder delivered to the Company within 10 days of receipt of notice of such
Change of Control pursuant to Section 5.2, to have the Company (or any such 

 9
 

 

successor or surviving
entity) purchase this Warrant from the Holder for an aggregate purchase price,
payable in cash on the effective date of consummation of such Change of
Control, equal to the product of (i) the difference between the price to be
paid in the Change of Control transaction and the Current Warrant Price,
multiplied by (ii) the number of shares of Common Stock issuable upon exercise
of this Warrant immediately prior to the consummation of such Change of
Control; or

(b)  if pursuant to the terms of such Change of
Control, shares of common stock of the successor or acquiring corporation,
and/or any cash, shares of stock or other securities or property of any nature
whatsoever (including warrants or other subscription or purchase rights) in
addition to or in lieu of common stock of the successor or acquiring
corporation (“Other Property”), are to be received by or distributed to
the holders of Common Stock of the Company, and the Holder shall not have
elected to have this Warrant purchased by the Company pursuant to Section 4.4(a)
above, then the Holder of this Warrant shall have the right thereafter to
receive, upon the exercise of the Warrant, the number of shares of common stock
of the successor or acquiring corporation or of the Company, if it is the
surviving corporation, and/or the Other Property receivable upon or as a result
of such Change of Control by a holder of the number of shares of Common Stock
into which this Warrant is exercisable immediately prior to such event.

(c)  In case of any such Change of Control
described above, to the extent this Warrant has not been fully purchased by the
Company pursuant to Section 4.4(a) above, the successor or acquiring
corporation (if other than the Company) shall expressly assume the due and
punctual observance and performance of each and every covenant and condition of
contained in this Warrant to be performed and observed by the Company and all
the obligations and liabilities hereunder, subject to such modifications as may
be deemed appropriate (as determined by resolution of the Board of Directors of
the Company) in order to provide for adjustments of shares of the Common Stock
into which this Warrant is exercisable which shall be as nearly equivalent as
practicable to the adjustments provided for in Section 4.  The foregoing provisions of this Section 4
shall similarly apply to successive Change of Control transactions.

4.5.          Other Action Affecting Common Stock.
In case at any time or from time to time the Company shall take any action in
respect of its Common Stock, other than the payment of dividends permitted by
Section 4 or any other action described in Section 4, then, unless such action
will not have a materially adverse effect upon the rights of the holder of this
Warrant, the number of shares of Common Stock or other stock into which this
Warrant is exercisable and/or the purchase price thereof shall be adjusted in
such manner as may be equitable in the circumstances; provided, that the mere
authorization or issuance of additional shares of capital stock of the Company
(other than pursuant to a stock dividend) shall not be considered any action in
respect of its Common Stock.

4.6.          Certain Limitations.
Notwithstanding anything herein to the contrary, the Company agrees not to
enter into any transaction that, by reason of any adjustment hereunder, would
cause the Current Warrant Price to be less than the par value per share of
Common Stock.

4.7.          Stock Transfer Taxes. The issue
of stock certificates upon exercise of this Warrant shall be made without
charge to the Holder for any tax in respect of such issue. The 

 10
 

 

Company shall not,
however, be required to pay any tax which may be payable in respect of any
transfer involved in the issue and delivery of shares in any name other than
that of the Holder of this Warrant, and the Company shall not be required to
issue or deliver any such stock certificate unless and until the person or
persons requesting the issue thereof shall have paid to the Company the amount
of such tax or shall have established to the satisfaction of the Company that
such tax has been paid.

5.             Notices to Warrant Holders.

5.1.          Certificate as to Adjustments.
Upon the occurrence of each adjustment or readjustment of the Current Warrant
Price, the Company, at its expense, shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and prepare and furnish to the
Holder of this Warrant a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based. The Company shall, upon the written request at any time
of the Holder of this Warrant, furnish or cause to be furnished to such Holder
a like certificate setting forth (i) such adjustments and readjustments, (ii)
the Current Warrant Price at the time in effect and (iii) the number of shares
of Common Stock and the amount, if any, or other property which at the time
would be received upon the exercise of Warrants owned by such Holder.

5.2.          Notice of Corporate Action. If
at any time:

(a)           the Company shall take a record of the
holders of its Common Stock for the purpose of entitling them to receive a
dividend (other than a cash dividend payable out of earnings or earned surplus
legally available for the payment of dividends under the laws of the
jurisdiction of incorporation of the Company) or other distribution, or any
right to subscribe for or purchase any evidences of its indebtedness, any
shares of stock of any class or any other securities or property, or to receive
any other right, or

(b)           there shall be any capital reorganization
of the Company, any reclassification or recapitalization of the capital stock
of the Company or any Change of Control or any consolidation or merger of the
Company with, or any sale, transfer or other disposition of all or
substantially all the property, assets or business of the Company to, another
corporation, or

(c)           there shall be a voluntary or
involuntary dissolution, liquidation or winding up of the Company;

then, in any one or more
of such cases, the Company shall give to the Holder (i) at least 20 days’ prior
written notice of the date on which a record date shall be selected for such
dividend, distribution or right or for determining rights to vote in respect of
any such reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up, and (ii) in the case of
any such Change of Control, reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up, at least 20 days’ prior written notice of the date when the same shall take
place. Such notice in accordance with the foregoing clause also shall specify
(i) the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, the date on which the holders of Common Stock
shall be entitled to any such dividend, distribution or right, and the amount 

 11
 

 

and character thereof,
and (ii) the date on which any such Change of Control, reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such Change of Control, reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up. Each such written notice shall be
sufficiently given if addressed to the Holder at the last address of the Holder
appearing on the books of the Company and delivered in accordance with Section
12.2.

5.3.          No Rights as Stockholder. This
Warrant does not entitle the Holder to any voting or other rights as a
stockholder of the Company prior to exercise and payment for the Warrant Price
in accordance with the terms hereof.

6.             No Impairment. The Company
shall not by any action, including, without limitation, amending its
certificate of incorporation or bylaws or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms of this Warrant, but will at all times in good faith assist in
the carrying out of all such terms and in the taking of all such actions as may
be necessary or appropriate to protect the rights of the Holder against
impairment. Without limiting the generality of the foregoing, the Company will
(a) not increase the par value of any shares of Common Stock receivable upon
the exercise of this Warrant above the amount payable therefor upon such
exercise immediately prior to such increase in par value, (b) take all such
action as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and nonassessable shares of Common Stock upon the
exercise of this Warrant, and (c) use its best efforts to obtain all such
authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be necessary to enable the Company to perform its
obligations under this Warrant. Upon the request of the Holder, the Company
will at any time during the period this Warrant is outstanding acknowledge in
writing, in form satisfactory to the Holder, the continuing validity of this
Warrant and the obligations of the Company hereunder.

7.             Reservation and Authorization of
Common Stock; Registration With Approval of Any Governmental Authority.
From and after the Closing Date, the Company shall at all times reserve and
keep available for issue upon the exercise of Warrants such number of its
authorized but unissued shares of Common Stock as will be sufficient to permit
the exercise in full of all outstanding Warrants. All shares of Common Stock
which shall be so issuable, when issued upon exercise of any Warrant and
payment therefor in accordance with the terms of such Warrant, shall be duly
and validly issued and fully paid and nonassessable, and not subject to
preemptive rights. Before taking any action which would cause an adjustment
reducing the Current Warrant Price below the then par value, if any, of the
shares of Common Stock issuable upon exercise of the Warrants, the Company
shall take any corporate action which may be necessary in order that the
Company may validly and legally issue fully paid and non-assessable shares of
such Common Stock at such adjusted Current Warrant Price. Before taking any
action which would result in an adjustment in the number of shares of Common
Stock for which this Warrant is exercisable or in the Current Warrant Price,
the Company shall obtain all such authorizations or exemptions thereof, or
consents thereto, as may be necessary from any public regulatory body or bodies
having jurisdiction thereof. If any shares of Common Stock required to be
reserved for 

 12
 

 

issuance upon exercise of
Warrants require registration or qualification with any governmental authority
under any federal or state law before such shares may be so issued (other than
as a result of a prior or contemplated distribution by the Holder of this
Warrant), the Company will in good faith and as expeditiously as possible and
at its expense endeavor to cause such shares to be duly registered.

8.             Taking of Record; Stock and
Warrant Transfer Books. In the case of all dividends or other distributions
by the Company to the holders of its Common Stock with respect to which any
provision of Section 4 refers to the taking of a record of such holders, the
Company will in each such case take such a record and will take such record as
of the close of business on a Business Day. The Company will not at any time,
except upon dissolution, liquidation or winding up of the Company, close its
stock transfer books or Warrant transfer books so as to result in preventing or
delaying the exercise or transfer of any Warrant.

9.             Loss or Mutilation. Upon
receipt by the Company from the Holder of evidence reasonably satisfactory to
it of the ownership of and the loss, theft, destruction or mutilation of this
Warrant and indemnity or security reasonably satisfactory to it and
reimbursement to the Company of all reasonable expenses incidental thereto and
in case of mutilation upon surrender and cancellation hereof, the Company will
execute and deliver in lieu hereof a new Warrant of like tenor to the Holder;
provided, however, that in the case of mutilation, no indemnity shall be
required if this Warrant in identifiable form is surrendered to the Company for
cancellation.

10.           Office of the Company. As long
as any of the Warrants remain outstanding, the Company shall maintain an office
or agency (which may be the principal executive offices of the Company) where
the Warrants may be presented for exercise, registration of transfer, division
or combination as provided in this Warrant.

11.           Limitation of Liability. No
provision hereof, in the absence of affirmative action by the Holder to
purchase shares of Common Stock, and no enumeration herein of the rights or
privileges of the Holder hereof, shall give rise to any liability of the Holder
for the purchase price of any Common Stock, whether such liability is asserted
by the Company or by creditors of the Company.

12.           Miscellaneous.

12.1.        Nonwaiver and Expenses. No course
of dealing or any delay or failure to exercise any right hereunder on the part
of the Holder shall operate as a waiver of such right or otherwise prejudice
Holder’s rights, powers or remedies. If the Company fails to make, when due,
any payments provided for hereunder, or fails to comply with any other
provision of this Warrant, the Company shall pay to the Holder such amounts as
shall be sufficient to cover any third party costs and expenses including, but
not limited to, reasonable attorneys’ fees, including those of appellate
proceedings, incurred by the Holder in collecting any amounts due pursuant
hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

12.2.        Notice Generally. 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 (a) one Trading Day after the date of transmission, if such
notice or 

 13
 

 

communication is
delivered via facsimile at the facsimile number set forth on the signature
pages attached hereto prior to 2:00 p.m. (San Diego time) on a Trading Day, (b)
two Trading Days after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number set forth on
the signature pages attached hereto on a day that is not a Trading Day or later
than 2:00 p.m. (San Diego time) on any Trading Day, (c) the fourth Trading Day
following the date of shipment, if sent by internationally recognized overnight
courier service, or (d) 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 set forth below.  The Company shall, concurrently with
providing any notice in the manner set forth in the preceding two sentences,
transmit a copy of such notice (which copy shall not, by itself, be deemed to
constitute notice hereunder)  by email to
such email address as is set forth below.

	
  Addresses for Notice:

  
	
   

  
	
  Inovio Biomedical Corporation

  
	
  Attention:  Peter
  Kies

  
	
    Chief Financial Officer

  
	
  11494 Sorrento Valley Road

  
	
  San Diego, CA 92121-1334

  
	
  Telephone:  (858) 597-6006

  
	
  Fax:             (858)
  597-0451

  
	
   

  
	
  [Insert Address for Holder]

  

12.3.        Successors and Assigns. Subject
to compliance with the provisions of Section 3.1, this Warrant and the rights
evidenced hereby shall inure to the benefit of and be binding upon the
successors of the Company and the successors and assigns of the Holder. The
provisions of this Warrant are intended to be for the benefit of all Holders
from time to time of this Warrant, and shall be enforceable by any such Holder.

12.4.        Amendment. This Warrant may be
modified or amended or the provisions of this Warrant waived with the written
consent of both the Company and the Holder.

12.5.        Severability. Wherever possible,
each provision of this Warrant shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Warrant
shall be prohibited by or invalid under applicable law, such provision shall be
modified to the extent of such prohibition or invalidity and with the aim of
effecting the intent of the parties to the maximum extent possible, without
invalidating the remainder of such provision or the remaining provisions of
this Warrant.

12.6.        Headings. The headings used in
this Warrant are for the convenience of reference only and shall not, for any
purpose, be deemed a part of this Warrant.

12.7.        Governing Law. This Warrant and
the transactions contemplated hereby shall be deemed to be consummated in the
State of California and shall be governed by and interpreted in accordance with
the local laws of the State of California without regard to the provisions
thereof 

 14
 

 

relating to conflicts of
laws. The Company hereby irrevocably consents to the exclusive jurisdiction of
the State and Federal courts located in Los Angeles, California in connection
with any action or proceeding arising out of or relating to this Warrant. In
any such litigation the Company agrees that the service thereof may be made by
certified or registered mail directed to the Company pursuant to Section 12.2.

[Signature Page
Follows]

 15
 

 

IN WITNESS
WHEREOF, Inovio Biomedical Corporation has caused this Warrant to be executed
by its duly authorized officer and attested by its Secretary.

Dated: September 15, 2006

	
   

  	
  INOVIO BIOMEDICAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Avtar Dhillon

  	
   

  
	
   

  	
  Name:

  	
  Avtar Dhillon

  
	
   

  	
  Title:

  	
  President & Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  By:

  	
  /s/ Douglas Murdock

  	
   

  
	
  Name: Douglas Murdock

  
	
  Title: Secretary

  
						

 

 16
 

 

EXHIBIT A

SUBSCRIPTION FORM

[To be executed
only upon exercise of Warrant]

1.             The undersigned hereby elects to
purchase              
shares of the Common Stock of Inovio Biomedical Corporation pursuant to the
terms of the attached Warrant, and tenders herewith payment of the purchase
price of such shares in full.

2.             Please issue a certificate or
certificates representing said shares in the name of the undersigned or in such
other name as is specified below:

	
   

  	
   

  	
   

  
	
  

  	
   

  	
  (Name)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Address)

  

[and, if such shares of
Common Stock shall not include all of the shares of Common Stock issuable as
provided in this Warrant, that a new Warrant of like tenor and date for the
balance of the shares of Common Stock issuable hereunder be delivered to the
undersigned.]

 

	
  

  	
   

  
	
  (Name of
  Registered Owner)

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Signature of
  Registered Owner)

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Street Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Country)(Postal
  Code)

  

 

NOTICE: The signature on this subscription must
correspond with the name as written upon the face of the Warrant in every
particular, without alteration or enlargement or any change whatsoever.

 17
 

 

EXHIBIT B

ASSIGNMENT FORM

FOR VALUE RECEIVED the undersigned registered owner of
this Warrant for the purchase of shares of common stock of Inovio Biomedical
Corporation hereby sells, assigns and transfers unto the Assignee named below
all of the rights of the undersigned under this Warrant, with respect to the
number of shares of common stock set forth below:

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Name and Address of
  Assignee)

  
	
   

  
	
   

  	
   

  
	
  (Number of
  Shares of Common Stock)

  

 

and does hereby irrevocably constitute and appoint             
attorney-in-fact to register such transfer on the books of the Company,
maintained for the purpose, with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
  (Print Name and
  Title)

  
	
   

  
	
   

  	
   

  
	
  (Signature)

  
	
   

  
	
   

  	
   

  
	
  (Witness)

  

 

NOTICE: The signature on this assignment must
correspond with the name as written upon the face of the Warrant in every
particular, without alteration or enlargement or any change whatsoever.

 18

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