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Exhibit 4.2  

 
  INVESTOR RIGHTS AGREEMENT    
    

        This Investor Rights Agreement (this "Agreement") is made and entered into as of May 10, 2004 among Genetronics Biomedical Corporation, a Delaware
corporation (the "Company"), and each of the purchasers executing this Agreement and listed on Schedule 1 attached hereto (collectively, the
"Purchasers"). 

        This
Agreement is being entered into pursuant to the Preferred Stock and Warrant Purchase Agreement, dated as of the date hereof, by and among the Company and the Purchasers (the
"Purchase Agreement"). 

        The
Company and the Purchasers hereby agree as follows: 

        1.     Definitions. 

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

        "Advice" shall have the meaning set forth in Section 3(m). 

        "Affiliate" means, with respect to any Person, any other Person that directly or indirectly controls or is controlled by or under common
control with such Person. For the purposes of this definition, "control," when used with respect to any Person, means the possession, direct or indirect, of the power to direct or cause the direction
of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms of "affiliated," "controlling" and "controlled" have meanings
correlative to the foregoing. 

        "Blackout Period" shall have the meaning set forth in Section 3(n). 

        "Board" shall have the meaning set forth in Section 3(n). 

        "Business Day" means any day except Saturday, Sunday and any day which 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 Date" means the Closing Date as defined in the Purchase Agreement. 

        "Commission" means the Securities and Exchange Commission. 

        "Common Stock" means the Company's Common Stock, par value $0.001 per share. 

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

        "Event" shall have the meaning set forth in Section 7(e). 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Filing Date" means the 45th day following the Closing Date. 

        "Holder" or "Holders" means the holder or holders, as the case may be, from time to time
of Registrable Securities, including without limitation the Purchasers and their assignees. 

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

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

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

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

 

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

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

        "Registrable Securities" means (a) the Conversion Shares and the Warrant Shares (without regard to any limitations on beneficial
ownership contained in the Certificate of Designation or Warrants) or other securities issued or issuable to each Purchaser or its transferee or designee (i) upon conversion of the Preferred
Stock and/or upon exercise of the Warrants, or (ii) upon any dividend or distribution with respect to, any exchange for or any replacement of such Preferred Stock or Warrants or
(iii) upon any conversion, exercise or exchange of any securities issued in connection with any such distribution, exchange or replacement; (b) securities issued or issuable upon any
stock split, stock dividend, recapitalization or similar event with respect to the foregoing; and (c) any other security issued as a dividend or other distribution with respect to, in exchange
for, in replacement or redemption of, or in reduction of the liquidation value of, any of the securities referred to in the preceding clauses; provided, however, that such securities shall cease to be
Registrable Securities when such securities have been sold to or through a broker or dealer or underwriter in a public distribution or a public securities transaction or when such securities may be
sold without any restriction pursuant to Rule 144(k) as determined by the counsel to the Company pursuant to a written opinion letter, addressed to the Company's transfer agent to such effect
as described in Section 2 of this Agreement. 

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

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

        "Rule 158" means Rule 158 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

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

        "Securities Act" means the Securities Act of 1933, as amended. 

        "Special Counsel" means one special counsel to the Holders selected by a majority in interest of the Holders with notice of such selection
given to the Company. 

        "Warrant Shares" means the shares of Common Stock issuable upon the exercise of the warrants issued or to be issued to the Purchasers or
their assignees or designees in connection with the offering consummated under the Purchase Agreement. 

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        2.     Registration. As soon as possible following the Closing Date (but not later than the Filing Date), the Company shall
prepare and file with the Commission a "shelf" Registration Statement covering all Registrable Securities for a secondary or resale offering to be made on a continuous basis pursuant to
Rule 415. The Registration Statement shall be on Form S-3 (or if such form is not available to the Company on another form appropriate for such registration in accordance
herewith). The Company shall use its best efforts to cause the Registration Statement to be declared effective under the Securities Act not later than one hundred and twenty (120) days after
the Closing Date (including filing with the Commission a request for acceleration of effectiveness in accordance with Rule 461 promulgated under the Securities Act within five
(5) Business Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that a Registration Statement will not be "reviewed," or not be subject
to further review) and to keep such Registration Statement continuously effective under the Securities Act until such date as is the earlier of (x) the date when all Registrable Securities
covered by such Registration Statement have been sold or (y) the date on which the Registrable Securities may be sold without any restriction pursuant to Rule 144(k) as determined by the
counsel to the Company pursuant to a written opinion letter, addressed to the Company's transfer agent to such effect (the "Effectiveness Period"). Upon the initial filing thereof, the Registration
Statement shall cover at least 100% of the shares of Common Stock for issuance upon the conversion of the Preferred Stock and 100% of the shares of Common Stock for issuance upon the exercise of the
Warrants. Such Registration Statement also shall cover, to the extent allowable under the Securities Act and the Rules promulgated thereunder (including Securities Act Rule 416), such
indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to the Registrable Securities. 

        3.     Registration Procedures. 

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

        (a)   Prepare
and file with the Commission on or prior to the Filing Date, a Registration Statement on Form S-3 (or if such form is not available to the
Company on another form appropriate for such registration in accordance herewith) (which shall include a Plan of Distribution substantially in the form of  Exhibit A attached hereto), and cause the
Registration Statement to become effective and remain effective as provided herein; provided, however,
that not less than three (3) Business Days prior to the filing of the Registration Statement or any related Prospectus or any amendment or supplement thereto, the Company shall
(i) furnish to the Special Counsel, copies of all such documents proposed to be filed, which documents (other than those incorporated by reference) will be subject to the review of such Special
Counsel, and (ii) at the request of any Holder cause its officers and directors, counsel or independent certified public accountants, as applicable, to respond to such inquiries as shall be
necessary, in the reasonable opinion of counsel to such Holders, to conduct a reasonable investigation within the meaning of the Securities Act. The Company shall not file the Registration Statement
or any such Prospectus or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities or the Special Counsel shall reasonably object within three
(3) Business Days after the Special Counsel's receipt thereof. 

        (b)   (i) Prepare
and file with the Commission such amendments, including post-effective amendments, to the Registration Statement as may be necessary to
keep the Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and to the extent any Registrable Securities are not included in such
Registration Statement for reasons other than the failure of the Holder to comply with Section 3(m) hereof, shall prepare and file with the Commission such additional Registration Statements in
order to register for resale under the Securities Act all Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as
so supplemented or amended to be filed pursuant to Rule 424 (or any similar provisions then in force) promulgated 

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under
the Securities Act; (iii) respond as promptly as possible, and in no event later than 10 business days, to any comments received from the Commission with respect to the Registration
Statement or any amendment thereto and as promptly as possible provide the Holders true and complete copies of all correspondence from and to the Commission relating to the Registration Statement; and
(iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by the Registration
Statement during the Effectiveness Period in accordance with the intended methods of disposition by the Holders thereof set forth in the Registration Statement as so amended or in such Prospectus as
so supplemented. In addition, the Company shall promptly prepare and file such amendments, including post-effective amendments, to the Registration Statement and the related prospectus and
take all other actions as may be necessary to register the sale of Registrable Securities by any Holder to whom the rights under this Agreement have been assigned pursuant to Section 7(j). 

        (c)   Notify
the Holders of Registrable Securities to be sold and the Special Counsel as promptly as possible (A) when a Prospectus or any Prospectus supplement or
post-effective amendment to the Registration Statement is proposed to be filed (but in no event in the case of this subparagraph (A), less than three (3) Business Days prior to date
of such filing); (B) when the Commission notifies the Company whether there will be a "review" of such Registration Statement and whenever the Commission comments in writing on such
Registration Statement; and (C) with respect to the Registration Statement or any post-effective amendment, when the same has become effective, and after the effectiveness thereof:
(i) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to the Registration Statement or Prospectus or for additional
information; (ii) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement covering any or all of the Registrable Securities or the
initiation of any Proceedings for that purpose; (iii) if at any time any of the representations and warranties of the Company contained in any agreement contemplated hereby ceases to be true
and correct in all material respects; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the
Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) if the financial statements included in the Registration
Statement become ineligible for inclusion therein or of the occurrence of any event that makes any statement made in the Registration Statement or Prospectus or any document incorporated or deemed to
be incorporated therein by reference untrue in any material respect or that requires any revisions to the Registration Statement, Prospectus or other documents so that, in the case of the Registration
Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading. 

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

        (e)   If
requested by the Holders of a majority in interest of the Registrable Securities, (i) promptly incorporate in a Prospectus supplement or
post-effective amendment to the Registration Statement such information as the Company reasonably agrees should be included therein and (ii) make all required filings of such
Prospectus supplement or such post-effective amendment as soon as practicable after the Company has received notification of the matters to be incorporated in such Prospectus supplement or
post-effective amendment; provided, however, that the Company shall not be required to take any action pursuant to this Section 3(e) that would, in 

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the
written opinion of counsel for the Company (addressed to the Special Counsel), violate applicable law. 

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

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

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

        (i)    Cooperate
with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold pursuant to a Registration
Statement, which certificates shall be free, to the extent permitted by applicable law and the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such
denominations and registered in such names as any Holder may request at least two (2) Business Days prior to any sale of Registrable Securities. In connection therewith, the Company shall
promptly after the effectiveness of the Registration Statement cause an opinion of counsel to be delivered to and maintained with its transfer agent, together with any other authorizations,
certificates and directions required by the transfer agent, which authorize and direct the transfer agent to issue such Registrable Securities without legend upon sale by the Holder of such shares of
Registrable Securities under the Registration Statement. 

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

        (k)   Cause
all Registrable Securities relating to such Registration Statement to be listed on the American Stock Exchange and any other United States securities exchange,
quotation system, market or over-the-counter bulletin board, if any, on which similar securities issued by the Company are then listed as and when required pursuant to the
Purchase Agreement. 

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        (l)    Comply
in all material respects with all applicable rules and regulations of the Commission and make generally available to its security holders earning statements
satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 not later than 45 days after the end of any 3-month period (or 90 days after the
end of any 12-month period if such period is a fiscal year) commencing on the first day of the first fiscal quarter of the Company after the effective date of the Registration Statement,
which statement shall conform to the requirements of Rule 158. 

        (m)  Request
each selling Holder to furnish to the Company information regarding such Holder and the distribution of such Registrable Securities as is required by law or the
Commission to be disclosed in the Registration Statement, and the Company may exclude from such registration the Registrable Securities of any such Holder who fails to furnish such information within
a reasonable time prior to the filing of each Registration Statement, supplemented Prospectus and/or amended Registration Statement. 

        If
the Registration Statement refers to any Holder by name or otherwise as the holder of any securities of the Company, then such Holder shall have the right to require (if such
reference to such Holder by name or otherwise is not required by the Securities Act or any similar federal statute then in force) the deletion of the reference to such Holder in any amendment or
supplement to the Registration Statement filed or prepared subsequent to the time that such reference ceases to be required. 

        Each
Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in
Section 3(c)(C)(i), 3(c)(C)(ii), 3(c)(C)(iii), 3(c)(C)(iv), 3(c)(C)(v) or 3(n), such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration
Statement until such Holder's receipt of the copies of the supplemented Prospectus and/or amended Registration Statement contemplated by Section 3(j), or until it is advised in writing (the
"Advice") by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to
be incorporated by reference in such Prospectus or Registration Statement. 

        (n)   If
(i) there is material non-public information regarding the Company which the Company's Board of Directors (the "Board") reasonably determines not
to be in the Company's best interest to disclose and which the Company is not otherwise required to disclose, or (ii) there is a significant business opportunity (including, but not limited to,
the acquisition or disposition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer or other similar transaction) available to the Company which the
Board reasonably determines not to be in the Company's best interest to disclose and which the Company would be required to disclose under the Registration Statement, then the Company may postpone or
suspend filing or effectiveness of a registration statement for a period not to exceed 30 consecutive days, provided that the Company may not postpone or suspend its obligation under this
Section 3(n) for more than 45 days in the aggregate during any 12 month period (each, a "Blackout Period"). 

        4.     Registration Expenses. 

        All
fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by the Company whether or not the Registration Statement is filed or
becomes effective and whether or not any Registrable Securities are sold pursuant to the Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with the American Stock Exchange and
each other securities exchange, quotation system, market or over-the-counter bulletin board on which Registrable Securities are required hereunder to be listed, (B) with
respect to filings required to be made with the 

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Commission,
and (C) in compliance with state or provincial securities or Blue Sky laws (including, without limitation, fees and disbursements of Special Counsel in connection with Blue Sky
qualifications of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions as the Holders of a majority of
Registrable Securities may designate)), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing or photocopying
prospectuses), (iii) messenger, telephone and delivery expenses, (iv) Securities Act liability insurance, if the Company so desires such insurance, (v) fees and expenses of all
other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement, including, without limitation, the Company's independent public
accountants (including, in the case of an underwritten offering, the expenses of any comfort letters or costs associated with the delivery by independent public accountants of a comfort letter or
comfort letters) and legal counsel, and (vi) fees and expenses of the Special Counsel in connection with any Registration Statement hereunder. In addition, the Company shall be responsible for
all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers
and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities
exchange as required hereunder. 

        5.     Indemnification. 

        (a)   Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, partners, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result of a pledge or any failure to perform
under a margin call of Common Stock), investment advisors and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and
all losses, claims, damages, liabilities, costs (including, without limitation, costs of preparation and reasonable attorneys' fees) and expenses (collectively, "Losses"), as incurred, arising out of
or relating to any untrue or alleged untrue statement of a material fact contained or incorporated by reference in the Registration Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to
make the statements therein (in the case of any Prospectus or form of prospectus or amendment or supplement thereto, in the light of the circumstances under which they were made) not misleading,
except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such
Holder expressly for use therein, which information was reasonably relied on by the Company for use therein or to the extent that such information relates to (x) such Holder and was reviewed
and expressly approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of prospectus or in any amendment or supplement thereto or
(y) such Holder's proposed method of distribution of Registrable Securities as set forth in Exhibit A (or as such Holder otherwise informs the Company in writing); or (ii) in the
case of an occurrence of an event of the type described in Section 3(c)(C)(ii), 3(c)(C)(iii), 3(c)(C)(iv), 3(c)(C)(v) or 3(n), the use by a Holder of an outdated or defective Prospectus
after the delivery to the Holder of written notice from the Company that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in
Section 3(m). The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions
contemplated by this Agreement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of an Indemnified Party (as defined in 

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Section 5(c)
to this Agreement) and shall survive the transfer of the Registrable Securities by the Holders. 

        (b)   Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its
directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors, officers, agents and employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising solely out of or based
solely upon any untrue statement of a material fact contained in the Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising solely out
of or based solely upon any omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement
thereto, in the light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that (i) such untrue statement or omission is contained in or
omitted from any information so furnished in writing by such Holder to the Company specifically for inclusion in the Registration Statement or such Prospectus and that such information was reasonably
relied upon by the Company for use in the Registration Statement, such Prospectus, or in any amendment or supplement thereto, or
to the extent that such information relates to (x) such Holder and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement, such
Prospectus, or such form of prospectus or in any amendment or supplement thereto or (y) such Holder's proposed method of distribution of Registrable Securities as set forth in Exhibit A
(or as such Holder otherwise informs the Company in writing) or (ii) in the case of an occurrence of an event of the type described in Section 3(c)(C)(ii), 3(c)(C)(iii), 3(c)(C)(iv),
3(c)(C)(v) or 3(n), the use by a Holder of an outdated or defective Prospectus after the delivery to the Holder of written notice from the Company that the Prospectus is outdated or defective
and prior to the receipt by such Holder of the Advice contemplated in Section 3(m); provided, however, that the indemnity agreement contained in this Section 5(b) shall not apply to
amounts paid in settlement of any Losses if such settlement is effected without the prior written consent of the Holder, which consent shall not be unreasonably withheld. Notwithstanding anything to
the contrary contained herein, the Holder shall be liable under this Section 5(b) for only that amount as does not exceed the net proceeds to such Holder as a result of the sale of Registrable
Securities pursuant to such Registration Statement. 

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

        An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be
at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; or (2) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such
Proceeding (including any impleaded parties) include 

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both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to
represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the
expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the reasonable expense of the Indemnifying Party). The
Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding and does not impose any monetary or other obligation or restriction on the
Indemnified Party. 

        The
Indemnified Party shall pay all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating
or preparing to defend such Proceeding in a manner not inconsistent with this Section), as incurred, within ten (10) Business Days of written notice thereof to the Indemnifying Party, which
notice shall be delivered no more frequently than on a monthly basis (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder;
provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified
Party is not entitled to indemnification hereunder). 

        (d)   Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party
because of a failure or refusal of a governmental authority to enforce such indemnification in accordance with its terms (by reason of public policy or otherwise), then each Indemnifying Party, in
lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying, Party or
Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as
a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable attorneys' or other reasonable fees or expenses incurred by such party in
connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in
accordance with its terms. Notwithstanding anything to the contrary contained herein, the Holder shall be required to contribute under this Section 5(d) for only that amount as does not exceed
the net proceeds to such Holder as a result of the sale of Registrable Securities pursuant to such Registration Statement. 

        The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 

9

 

        The
indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. The indemnity and
contribution
agreements herein are in addition to and not in diminution or limitation of any indemnification provisions under the Purchase Agreement. 

        6.     Rule 144. 

        As
long as any Holder owns Preferred Stock, Conversion Shares, Warrants or Warrant Shares, the Company covenants to timely file (or obtain extensions in respect thereof and file within
the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to Section 13(a) or 15(d) of the Exchange Act. As long as any Holder owns Preferred
Stock, Conversion Shares, Warrants or Warrant Shares, if the Company is not required to file reports pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and furnish to the
Holders and make publicly available in accordance with Rule 144(c) promulgated under the Securities Act annual and quarterly financial statements, together with a discussion and analysis of
such financial statements in form and substance substantially similar to those that would otherwise be required to be included in reports required by Section 13(a) or 15(d) of the Exchange Act,
as well as any other information required thereby, in the time period that such filings would have been required to have been made under the Exchange Act. The Company further covenants that it will
take such further action as any Holder may reasonably request in writing, all to the extent required from time to time to enable such Person to sell Conversion Shares and Warrant Shares without
registration under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the Securities Act, including compliance with the provisions of the Purchase
Agreement relating to the transfer of the Conversion Shares and Warrant Shares. Upon the request of any Holder, in writing, the Company shall deliver to such Holder a written certification of a duly
authorized officer as to whether it has complied with such requirements. 

        7.     Miscellaneous. 

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

        (b)   No Inconsistent Agreements. Except as otherwise disclosed in the Purchase Agreement, neither the Company nor any of its
subsidiaries is a party to an agreement currently in effect, nor shall the Company or any of its subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. Without limiting the generality of the foregoing, without
the written consent of the Holders of a majority of the then outstanding Registrable Securities, the Company shall not grant to any Person the right to request the Company to register any securities
of the Company under the Securities Act unless the rights so granted are subject in all
respects to the prior rights in full of the Holders set forth herein, and are not otherwise in conflict with the provisions of this Agreement. 

        (c)   Notice of Effectiveness. Within two (2) Business Days after the Registration Statement which includes the
Registrable Securities is ordered effective by the Commission, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Holders whose Registrable Securities are included in 

10

 

such
Registration Statement) confirmation that the Registration Statement has been declared effective by the Commission in the form attached hereto as  Exhibit B. 

        (d)   Piggy-Back Registrations. If at any time when there is not an effective Registration Statement covering all
of the Registrable Securities, the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under
the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or its then equivalents
relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit
plans, the Company shall send to each Holder of Registrable Securities written notice of such determination and, if within seven (7) Business Days after receipt of such notice, any such Holder
shall so request in writing (which request shall specify the Registrable Securities intended to be disposed of by the Holder), the Company will cause the registration under the Securities Act of all
Registrable Securities which the Company has been so requested to register by the Holder, to the extent required to permit the disposition of the Registrable Securities so to be registered, provided
that if at any time after giving written notice of its intention to register any securities and prior to the effective date of the registration statement filed in connection with such registration,
the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written notice of such determination to such Holder and,
thereupon, (i) in the case of a determination not to register, shall be relieved of its obligation to register any Registrable Securities in connection with such registration (but not from its
obligation to pay expenses in accordance with Section 4 hereof), and (ii) in the case of a determination to delay registering, shall be permitted to delay registering any Registrable
Securities being registered pursuant to this Section 7(d) for the same period as the delay in registering such other securities. The Company shall include in such registration statement all or
any part of such Registrable Securities such Holder requests to be registered; provided, however, that the Company shall not be required to register any Registrable Securities pursuant to this
Section 7(d) that are eligible for sale pursuant to Rule 144(k) of the Securities Act. In the case of an underwritten public offering, if the managing underwriter(s) or underwriter(s)
should reasonably object to the inclusion of the Registrable Securities in such registration statement, then if the Company after consultation with the managing underwriter should reasonably determine
that the inclusion of such Registrable Securities, would materially adversely affect the offering contemplated in such registration statement, and based on such determination recommends inclusion in
such registration statement of fewer or none of the Registrable Securities of the Holders, then (x) the number of Registrable Securities of the Holders included in such registration statement
shall be reduced pro-rata among such Holders (based upon the number of Registrable Securities requested to be included in the registration), if the Company after consultation with the
underwriter(s) recommends the inclusion of fewer Registrable Securities, or (y) none of the Registrable Securities of the Holders shall be included in such registration statement, if
the Company after consultation with the underwriter(s) recommends the inclusion of none of such Registrable Securities; provided, however, that if securities are being offered for the account of other
persons or entities as well as the Company, such reduction shall not represent a greater fraction of the number of Registrable Securities intended to be offered by the Holders than the fraction of
similar reductions imposed on such other persons or entities (other than the Company). 

        (e)   Failure to File Registration Statement and Other Events. The Company and the Holders agree that the Holders will suffer
damages if the Registration Statement is not filed on or prior to the Filing Date and maintained in the manner contemplated herein during the Effectiveness Period. The Company and the Holders further
agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if (i) the Registration Statement is not filed on or prior to the Filing Date, or
(ii) except as otherwise permitted herein, the Company intentionally 

11

 

and
willfully fails to file with the Commission a request for acceleration in accordance with Rule 461 promulgated under the Securities Act within five (5) Business Days of the date that
the Company is notified (orally or in writing, whichever is earlier) by the Commission that a Registration Statement will not be "reviewed," or not subject to further review, or (iii) the
Registration Statement is filed with and declared effective by the Commission but thereafter ceases to be effective as to all Registrable Securities at any time prior to the expiration of the
Effectiveness Period due to an intentional and willful act by the Company, without being succeeded immediately by a subsequent Registration Statement filed with the Commission, except as otherwise
permitted by this Agreement, including pursuant to Section 3(n), or (iv) trading in the Common Stock shall be suspended or if the Common Stock is delisted from the American Stock
Exchange or any other securities exchange, quotation system, market or over-the-counter bulletin board on which Registrable Securities are required hereunder to be listed (each
an "Exchange"), without immediately being listed on any other Exchange, for any reason for more than one (1) Business Day, other than pursuant to Section 3(n), due to an intentional and
willful act by the Company, or (v) the conversion rights of the Holders are suspended due to an intentional and willful act by the Company without the consent of the particular Holder other
than as set forth in the Certificate of Designation, or (vi) the Company has breached Section 3(n) of this Agreement (any such failure or breach being referred to as an "Event"), the
Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to one percent (1%) of such Holder's pro rata share of the purchase price paid by
all Holders for Preferred Stock purchased and then outstanding pursuant to the Purchase Agreement for the initial thirty (30) day period until the applicable Event has been cured or until the
Preferred Stock has been redeemed (whichever is earlier), which shall be pro rated for such periods less than thirty (30) days and one percent (1%) of such Holder's pro rata share of the
purchase price paid by all Holders for Preferred Stock purchased and then outstanding pursuant to the Purchase Agreement for each subsequent thirty (30) day period until the applicable Event
has been cured which shall be pro rated for such periods less than thirty days (the "Periodic Amount"). Payments to be made pursuant to this Section 7(e) shall be due and payable immediately
upon demand in immediately available cash funds. The parties agree that the Periodic Amount represents a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount
of damages that may be incurred by the Holders if the Registration Statement is not filed on or prior to the forty-fifth (45th) day following the Closing Date and maintained in the manner contemplated
herein during the Effectiveness Period or if any other Event as described herein has occurred. 

        (f)    Specific Enforcement, Consent to Jurisdiction. 

        (i)    The
Company and the Holders acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the
provisions of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which any of them may be entitled by law or equity. 

        (ii)   Each
of the Company and the Holders (i) hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts located in New York City, New
York for the purposes of any suit, action or proceeding arising out of or relating to this Agreement and (ii) hereby waives, and agrees not to assert in any such suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding
is improper. Each of the Company and the Holders consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to
it under this Agreement and agrees that such service shall 

12

 

constitute
good and sufficient service of process and notice thereof. Nothing in this Section 7(f) shall affect or limit any right to serve process in any other manner permitted by law. 

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

        (h)   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 earlier of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone
number specified for notice prior to 5:00 p.m., New York City time, on a Business Day, (ii) the next Business Day after the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number specified in this Section on a day that is not a Business Day or later than 5:00 p.m., New York City time, on any date and earlier than
11:59 p.m., New York City time, on such date, (iii) the Business Day following the date of mailing, if sent by nationally recognized overnight courier service such as Federal Express or
(iv) actual receipt by the party to whom such notice is required to be given. The addresses for such communications shall be with respect to each Holder at
its address set forth under its name on Schedule 1 attached hereto, or with respect to the Company, addressed to: 

Genetronics
Biomedical Corporation

11199 Sorrento Valley Road

San Diego, CA 92121-1334

Attention: Mr. Peter Kies, Chief Financial Officer

Facsimile No.: 858-597-0451 

or
to such other address or addresses or facsimile number or numbers as any such party may most recently have designated in writing to the other parties hereto by such notice. Copies of notices to the
Company shall be sent to Kirkpatrick & Lockhart, LLP, 10100 Santa Monica Boulevard, 7th Floor, Los Angeles, CA, 90067, Attention: Mr. Thomas Poletti, Esq, Facsimile: 310-
552-5001. Copies of notices to any Holder shall be sent to the addresses, if any, listed on Schedule 1 attached hereto. 

        (i)    Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns and shall inure to the benefit of each Holder and its successors and assigns; provided, that the Company may not assign this Agreement or any of its rights or obligations
hereunder without the prior written consent of Holders holding a majority of the Registrable Securities; and provided, further, that each Holder may assign its rights hereunder in the manner and to
the Persons as permitted under the Purchase Agreement. 

        (j)    Assignment of Registration Rights. The rights of each Holder hereunder, including the right to have the Company register
for resale Registrable Securities in accordance with the terms of this Agreement, shall be automatically assignable by each Holder to any transferee of such Holder of all or a portion of the Preferred
Stock, the Warrants or the Registrable Securities if: (i) the Holder agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the
Company within a reasonable time after such assignment, (ii) the 

13

 

Company
is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b) the securities
with respect to which such registration rights are being transferred or assigned, (iii) following such transfer or assignment the further disposition of such securities by the transferee or
assignees is restricted under the Securities Act and applicable state securities laws, (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of
this Section 7(j), the transferee or assignee agrees in writing with the Company to be bound by all of the provisions of this Agreement, and (v) such transfer shall have been made in
accordance with the applicable requirements of the Purchase Agreement and applicable securities legislation. The rights to assignment shall apply to the Holders (and to subsequent) successors and
assigns. 

        The
Company may require, as a condition of allowing such assignment in connection with a transfer of Preferred Stock, Warrants or Registrable Securities (i) that the Holder or
transferee of all or a portion of the Preferred Stock, the Warrants or the Registrable Securities as the case may be, furnish to the Company a written opinion of counsel that is reasonably acceptable
to the Company to the effect that such transfer may be made without registration under the Securities Act, (ii) that the Holder or transferee execute and deliver to the Company an investment
letter in form and substance acceptable to the Company and (iii) that the transferee be an "accredited investor" as defined in Rule 501(a) promulgated under the Securities Act. 

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

        (l)    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York,
without regard to principles of conflicts of law thereof. 

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

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

        (o)   Headings; Interpretation. 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. Any form of the word "include" as used in this Agreement shall be deemed to be followed by the phrase "without limitation". 

        (p)   Registrable Securities Held by the Company and its Affiliates. Whenever the consent or approval of Holders of a specified
percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company or its Affiliates (other than any Holder or transferees or successors or assigns thereof if such
Holder is deemed to be an Affiliate solely by reason of its holdings of such Registrable Securities) shall not be counted in determining whether such consent or approval was given by the Holders of
such required percentage. 

14

 

        (q)   Obligations of Purchasers. The Company acknowledges that the obligations of each Purchaser under this Agreement, 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 this Agreement.
The decision of each Purchaser to enter into to this Agreement has been made by such Purchaser independently of any other Purchaser. The Company further acknowledges that nothing contained in this
Agreement, and no action taken by any Purchaser pursuant hereto, 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 hereby. Each Purchaser shall be entitled to
independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose. 

        Purchasers
introduced to the Company by SCO Securities LLC ("SCO") acknowledge that SCO has acted solely as agent for the Company and not for any Purchaser. Each Purchaser has been
represented by its own separate legal counsel in their review and negotiation of this Agreement and with respect to the transactions contemplated hereby. For reasons of administrative convenience
only, this Agreement has been prepared by Special Counsel (counsel for SCO) and the Special Counsel will perform certain duties under this Agreement. Such counsel does not represent all of the
Purchasers but only SCO. The Company has elected to provide all Purchasers with the same terms and Agreement for the convenience of the Company and not because it was required or requested to do so by
the Purchasers. The Company acknowledges that such procedure with respect to this Agreement in no way creates a presumption that the Purchasers are in any way acting in concert or as a group with
respect to this Agreement or the transactions contemplated hereby or thereby. 

[signature
page follows] 

15

 

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

	COMPANY:	 
	
 GENETRONICS BIOMEDICAL CORPORATION
	

By:	
 	

/s/  AVTAR DHILLON      
 Name: Avtar Dhillon

Title: Chief Executive Officer	

 

16

 

	PURCHASER:
	

Print Exact Name: Alpha Capital
	

By:	
 	

/s/  ILLEGIBLE      
 Name:

Title:	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

17

 

	PURCHASER:
	

Print Exact Name: BayStar Capital II, L.P.
	

By:	
 	

Bay East, L.P.
 Managing Member of BayStar Capital Management, LLC	

 
	

By:	
 	

/s/  STEVE DERBY      
 Name: Steve Derby

Title: General Partner of Bay East, L.P.	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

18

 

	PURCHASER:
	

Print Exact Name: Bridges & Pipes LLC
	

By:	
 	

/s/  DAVID FUCHS      
 Name: David Fuchs

Title: Managing Member	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

19

 

	PURCHASER:
	

Print Exact Name: Kinetic Capital "TNT" Limited Partnership
	

By:	
 	

/s/  FRANK BARKER      
 Name: Frank Barker

Title: Partner	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

20

 

	PURCHASER:
	

Print Exact Name: Park Place Columbia Ltd
	

By:	
 	

/s/  T. FOULSER      
 Name: T. Foulser

Title: Settlements Controller

Park Place Capital Ltd

As Agent in Process	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

21

 

	PURCHASER:
	

Print Exact Name: Pharmaceutical/Medical Tech Fund
	

By:	
 	

/s/  FRED GREENBERG      
 Name: Fred Greenberg

Title: Principle	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

22

 

	PURCHASER:
	

Print Exact Name: QFinance, Inc.
	

By:	
 	

/s/  GREG CONNORS      
 Name: Greg Connors

Title:	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

23

 

	PURCHASER:
	

Print Exact Name: Rennes Foundation
	

By:	
 	

/s/  ROLF HERTER      
 Name: Rolf Herter

Title: Director	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

24

 

	PURCHASER:
	

Print Exact Name: SDS Capital Group SPC, Ltd.
	

By:	
 	

/s/  SCOTT E. DERBY      
 Name: Scott E. Derby

Title: General Counsel	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

25

 

	PURCHASER:
	

Print Exact Name: SRG Capital, LLC
	

By:	
 	

/s/  ANDREW J. TURCHIN      
 Name: Andrew J. Turchin

Title: Chief Financial Officer	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

26

 

	PURCHASER:
	

Print Exact Name: Stonestreet LP
	

By:	
 	

/s/  M. FINKELSTEIN      
 Name: M. Finkelstein

Title: President	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

27

 

	PURCHASER:
	

Print Exact Name: Sunrise Partners Limited Partnership
	

By:	
 	

/s/  MICHAEL J. BAMER      
 Name: Michael J. Bamer

Title: Vice President

Dawn-General Partners Corp.

General Partner	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

28

 

	PURCHASER:
	

Print Exact Name: William Kane Mahon
	

By:	
 	

/s/  WILLIAM KANE MAHON      
 Name: William Kane Mahon

Title:	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

29

 

	PURCHASER:
	

Print Exact Name: Xmark Fund, L.P.
	

By:	
 	

/s/  MITCHELL D. KAYE      
 Name: Mitchell D. Kaye

Title: Chief Investment Officer	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

30

 

	PURCHASER:
	

Print Exact Name: Xmark Fund, Ltd.
	

By:	
 	

/s/  MITCHELL D. KAYE      
 Name: Mitchell D. Kaye

Title: Chief Investment Officer	

 

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page] 

31

 
SCHEDULE 1

PURCHASERS  

	Name, Address and Fax Number of Purchaser

and Registration Instructions
 
	 	Copies of Notices to
	 	Shares of

Series C

Preferred

Stock

Purchased
	 	Warrants
	 	Purchase Price

	Alpha Capital

Pradafont 7

Fursteatums 9490

Vaduz Liechenstein

Tel: 011-423-232-3195

Fax: 011-423-232-3196	 	 	 	25	 	51,471	 	$	250,000
	

BayStar Capital II, LP

c/o BayStar Capital Management, LLC

53 Forest Avenue, Suite 203

Old Greenwich, CT 06870

Attn: Steve Derby

Tel: 203-967-5875

Fax: 203-967-5851

steve@sdscapital.com	
 	

 	
 	

300	
 	

617,647	
 	
$	

3,000,000
	

Bridges and Pipes LLC

830 3rd Avenue, 14th Floor

New York, NY 10022

Attn: David Fuchs

Tel: 212-922-2090

Fax: 212-581-7010

df@duncancapital.net	
 	

 	
 	

25	
 	

51,471	
 	
$	

250,000
	

Kinetic Capital "TNT" Limited Partnership

1460-777 Hornby Street

Vancouver, B.C. V6Z

Canada

Attn: Frank Barker

Tel: 604-692-2350

Fax: 604-692-2531

frank@kineticcapitalpartners.com	
 	

 	
 	

35	
 	

72,059	
 	
$	

350,000
	

Park Place Columbia Limited

Chancery Hall

52 Reid Street

Hamilton HMR

Bermuda

Tel: 0044-0-207-408-4810

Fax: 0044-0-207-629-2439	
 	

 	
 	

13	
 	

26,765	
 	
$	

130,000
	 	 	 	 	 	 	 	 	 	 

32

 

	

Pharmaceutical Medical Tech Fund

c/o Greenberg Healthcare Partners, LLC

350 Park Avenue, 11th Floor

New York, NY 10022

Tel: 212-521-1458

Fax: 212-755-9188

gcohen@Greenberghealth.com	
 	

 	
 	

50	
 	

102,941	
 	
$	

500,000
	

QFinance, Inc.

300 Delaware Avenue Suite 900

Wilmington, DE 19801

Attn: Victoria Garrett

Tel: 302-552-3103

Fax: 302-552-3128

victoria.garrett@wachovia.com	
 	

Carl Hellman

c/o Quintiles Transnational

4709 Creekstone Drive, Suite 200

Durham, NC 27703

Tel: 919-998-2065

Fax: 919-998-2542	
 	

109.0133	
 	

224,439	
 	
$	

1,090,133
	

Rennes Fondation

Aeulestrasse 38

9490 Vaduz

Principality of Liechtenstein

Tel: +41 1 208 2525

Fax: +41 1 208 2526

rolf.herter@nastra.ch	
 	

 	
 	

40.12	
 	

82,600	
 	
$	

401,200
	

SDS Capital Group SPC, Ltd.

c/o SDS Management LLC

53 Forest Avenue, 2nd Floor

Old Greenwich, CT 06870

Tel: 203-967-5850

Fax: 203-967-5851

steve@sdscapital.com	
 	

 	
 	

200	
 	

411,765	
 	
$	

2,000,000

33

 
Schedule 1

Investor Rights Agreement  

	Name and Address
 
	 	Copies of Notices to

	SRG Capital, LLC

120 Broadway, 42 Floor

New York, NY 10271

Tel: 212-571-1244

Fax: 212-571-1279

yoav@gerbercapital.com	 	 
	

Stonestreet LP

c/o Canaccord Capital Corp.

320 Bay Street, Suite 1300

Toronto, Ontario M5H

Canada

Tel: 416-867-6088

Fax: 416- 956-8989

saira__baldeojohn@canaccord.com	
 	

 
	

Sunrise Partners Limited Partnership

2 American Lane

Greenwich, CT 06836-2571

Attn: Ted Hagan

Tel: 203-861-3260

Fax: 203-861-6987

thagan@paloma.com	
 	

 
	

William Kane Mahon

210 Little John Trail

Atlanta, GA 30309

Tel: 404-728-8772

Fax: 404-728-1069

wkmahon@mindspring.com	
 	

 
	

Xmark Fund, LP

152 West 57th Street, 21st Floor

New York, NY 10019

Tel: 212-247-8200

Fax: 212-2491329

mkaye@xmarkfunds.com	
 	

 
	

Xmark Fund, Ltd.

152 West 57th Street, 21st Floor

New York, NY 10019

Tel: 212-247-8200

Fax: 212-2491329

mkaye@xmarkfunds.com	
 	

 
	
Totals:	
 	

 
	
Placement Agent Warrants	
 	

 
	

SCO Securities LLC

1285 Avenue of the Americas, 35th Floor

New York, NY 10019

Attn: Steven Rouhandeh

Tel: 212-554-4235

Fax: 212-554-4058

srouhandeh@scogroup.com	
 	

Wiggin & Dana LLP

400 Atlantic Street

Stamford, CT 06901

Attn: Michael Grundei

Tel: 203-363-7630

Tel: 203-363-7676

mgrundei@wiggin.com

34

 
EXHIBIT A

PLAN OF DISTRIBUTION  

        We are registering the shares of common stock on behalf of the selling security holders. Sales of shares may be made by selling security holders, including their
respective donees, transferees, pledgees or other successors-in-interest directly to purchasers or to or through underwriters, broker-dealers or through agents. Sales may be
made from time to time on the American Stock Exchange, any other exchange upon which our shares may trade in the future, in the over-the-counter market or otherwise, at market
prices prevailing at the time of sale, at prices related to market prices, or at negotiated or fixed prices. The shares may be sold by one or more of, or a combination of, the following: 

	•
	a
block trade in which the broker-dealer so engaged will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate
the transaction (including crosses in which the same broker acts as agent for both sides of the transaction);

	•
	purchases
by a broker-dealer as principal and resale by such broker-dealer, including resales for its account, pursuant to this prospectus;

	•
	ordinary
brokerage transactions and transactions in which the broker solicits purchases;

	•
	through
options, swaps or derivatives;

	•
	in
privately negotiated transactions;

	•
	in
making short sales or in transactions to cover short sales; and

	•
	put
or call option transactions relating to the shares. 

        The
selling security holders may effect these transactions by selling shares directly to purchasers or to or through broker-dealers, which may act as agents or principals. These
broker-dealers may receive compensation in the form of discounts, concessions or commissions from the selling security holders and/or the purchasers of shares for whom such broker-dealers may act as
agents or to whom they sell as principals, or both (which compensation as to a particular broker-dealer might be in excess of customary commissions). The selling security holders have advised us that
they have not entered into any agreements, understandings or arrangements with any underwriters or broker-dealers regarding the sale of their securities. 

        The
selling security holders may enter into hedging transactions with broker-dealers or other financial institutions. In connection with those transactions, the broker-dealers or other
financial institutions may engage in short sales of the shares or of securities convertible into or exchangeable for the shares in the course of hedging positions they assume with the selling security
holders. The selling security holders may also enter into options or other transactions with broker-dealers or other financial institutions which require the delivery of shares offered by this
prospectus to those broker-dealers or other financial institutions. The broker-dealer or other financial institution may then resell the shares pursuant to this prospectus (as amended or supplemented,
if required by applicable law, to reflect those transactions). 

        The
selling security holders and any broker-dealers that act in connection with the sale of shares may be deemed to be "underwriters" within the meaning of Section 2(11) of the
Securities Act of 1933, and any commissions received by broker-dealers or any profit on the resale of the shares sold by them while acting as principals may be deemed to be underwriting discounts or
commissions under the Securities Act. The selling security holders may agree to indemnify any agent, dealer or broker-dealer that participates in transactions involving sales of the shares against
liabilities, including liabilities arising under the Securities Act. We have agreed to indemnify each of the selling security holders and each selling security holder has agreed, severally and not
jointly, to indemnify us against some liabilities in connection with the offering of the shares, including liabilities arising under the Securities Act. 

35

 

        The
selling security holders will be subject to the prospectus delivery requirements of the Securities Act. We have informed the selling security holders that the
anti-manipulative provisions of Regulation M promulgated under the Securities Exchange Act of 1934 may apply to their sales in the market. 

        Selling
security holders also may resell all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities Act, provided they meet the
criteria and conform to the requirements of Rule 144. 

        Upon
being notified by a selling security holder that a material arrangement has been entered into with a broker-dealer for the sale of shares through a block trade, special offering,
exchange distribution or secondary distribution or a purchase by a broker or dealer, we will file a supplement to this prospectus, if required pursuant to Rule 424(b) under the
Securities Act, disclosing: 

	•
	the
name of each such selling security holder and of the participating broker-dealer(s);

	•
	the
number of shares involved;

	•
	the
initial price at which the shares were sold;

	•
	the
commissions paid or discounts or concessions allowed to the broker-dealer(s), where applicable;

	•
	that
such broker-dealer(s) did not conduct any investigation to verify the information set out or incorporated by reference in this prospectus; and

	•
	other
facts material to the transactions. 

        In
addition, if required under applicable law or the rules or regulations of the Commission, we will file a supplement to this prospectus when a selling security holder notifies
us that a donee or pledgee intends to sell more than 500 shares of common stock. 

        We
are paying all expenses and fees in connection with the registration of the shares. The selling security holders will bear all brokerage or underwriting discounts or commissions paid
to broker-dealers in connection with the sale of the shares. 

36

 
EXHIBIT B

FORM OF NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT  

[Name
and Address of Transfer Agent] 

Re:
Genetronics Biomedical Corporation 

Dear
[            ]: 

        We
are counsel to Genetronics Biomedical Corporation, a Delaware corporation (the "Company"), and have represented the Company in connection with that certain Preferred Stock and Warrant
Purchase Agreement (the "Purchase Agreement") dated as of                        , 2004 by and among the Company and the buyers
named therein (collectively, the "Holders") pursuant to which the Company issued
to the Holders its Series C Cumulative Convertible Preferred Stock, par value $0.001 per share (the "Preferred Stock") convertible into shares of the Company's common stock, par value $0.001
per share (the "Common Stock"), and warrants to purchase shares of the Common Stock (the "Warrants"). Pursuant to the Purchase Agreement, the Company has also entered into an Investor Rights Agreement
with the Holders (the "Investor Rights Agreement") pursuant to which the Company agreed, among other things, to register the shares of Common Stock issuable upon conversion of the Preferred Stock and
exercise of the Warrants, under the Securities Act of 1933, as amended (the "1933 Act"). In connection with the Company's obligations under the Investor Rights Agreement,
on                        
    , 2004, the Company filed a Registration Statement on Form S-3 (File
No. 333-                        ) (the "Registration Statement") with the Securities and
Exchange Commission (the "SEC") relating to the Registrable Securities which names each of the Holders as a selling securityholder thereunder. 

        In
connection with the foregoing, we advise you that a member of the SEC's staff has advised us by telephone that the SEC has entered an order declaring the Registration Statement
effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a
member of the SEC's staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the Registration Statement. 

Very
truly yours, 

	

By:	

    
	

 
	cc: [LIST NAMES OF HOLDERS]	 

37

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Exhibit 4.3  

THIS WARRANT AND THE SECURITIES REPRESENTED HEREBY 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.

Warrants
and shares of Common Stock issued upon the exercise of the Warrants issued to residents of British Columbia and Ontario must also bear the following legend: 

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES SHALL NOT TRADE THE SECURITIES BEFORE [DATE].

Warrant
No. W-    

 
 

COMMON STOCK PURCHASE WARRANT    
    

To
Purchase                        Shares of Common Stock of

GENETRONICS BIOMEDICAL CORPORATION 

        THIS
IS TO CERTIFY THAT                        , or registered assigns (the "Holder"), is entitled, during the Exercise Period (as
hereinafter defined), to purchase from Genetronics 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 $2.20 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: 

        "Affiliate" means any person or entity that, directly or indirectly through one or more intermediaries, controls or is controlled by or is
under common control with a person or entity, as such terms are used in and construed under Rule 144 under the Securities Act. With respect to a Holder of Warrants, any investment fund or
managed account that is managed on a discretionary basis by the same investment manager as such Holder will be deemed to be an Affiliate of such Holder. 

        "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 which 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 the merger into or consolidation with any other corporation (other than a wholly owned subsidiary corporation) or 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 May 10, 2004. 

        "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 (i) capital stock of the Company of any other
class (regardless of how denominated) issued to the holders of shares of Common Stock upon any reclassification thereof which is also not preferred as to dividends or assets on liquidation over any
other class of stock of the Company and which is not subject to redemption and (ii) shares of common stock of any successor or acquiring corporation 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 National Association of Securities Dealers, Inc. (the "NASD") selected mutually by the holder of this Warrant 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 holder of this Warrant 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 Warrant on such date. Until the Current Warrant Price is adjusted pursuant to the terms herein, the initial Current Warrant Price shall be $2.20 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. 

2

 

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

        "Expiration Date" means May 10, 2009. 

        "GAAP" means generally accepted accounting principles in the United States of America as from time to time in effect. 

        "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). 

        "Preferred Stock Purchase Agreement" means that certain Preferred Stock and Warrant Purchase Agreement dated as of May 10, 2004
among the Company and the other parties named therein, pursuant to which this Warrant was originally issued. 

        "Restricted Common Stock" means shares of Common Stock which are, or which upon their issuance upon the exercise of any Warrant would be
required to be, evidenced by a certificate bearing the restrictive legend set forth in Section 3.2. 

        "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. 

        "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 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., New York 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) an original 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 

3

 

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. 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. 

        If
the Company intentionally and willfully fails to deliver to the holder such certificate or certificates pursuant to this Section 2.1 (free of any restrictions on transfer or
legends, if such shares have been registered) in accordance herewith, prior to the seventh trading day after the receipt by the Company of (i) an original 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 (the
"Date of Receipt"), the Company shall pay to such Holder, in cash, on a per diem basis, an amount equal to 2% of the value of the undelivered Warrant Stock (based on the Current Market Price of the
Common Stock on the Date of Receipt) per month until such delivery takes place. 

        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, (ii) wire transfer to the
account of the Company or (iii) at any time following the date that is twelve (12) months after the Closing Date, the surrender and cancellation of a portion of shares of Common Stock
then held by the Holder or issuable upon exercise of this Warrant, which shall be valued and credited toward the total Warrant Price due the Company for the exercise of the Warrant based upon the
Current Market Price of the Common Stock, unless a Registration Statement (as defined in the Investor Rights Agreement) is then effective with respect to all shares of Common Stock issuable pursuant
to this Warrant and sales may be made pursuant to such Registration Statement. 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 and not subject to any preemptive rights. 

        2.2.    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. 

        2.3.    Continued Validity.    A Holder of shares of Common Stock issued upon the exercise of this Warrant, in whole
or in part (other than a Holder who acquires such shares after the same have been publicly sold pursuant to a Registration Statement under the Securities Act or sold pursuant to Rule 144
thereunder), shall continue to be entitled with respect to such shares to all rights to which it would have been entitled as the Holder under Sections 10 and 13 of this Warrant. 

4

 

        2.4.    Restrictions on Exercise Amount.    

        (i)    Unless
a Holder delivers to the Company irrevocable written notice prior to the date of issuance hereof or sixty-one days prior to the effective date of such
notice that this Section 2.4(i) shall not apply to such Holder, the Holder may not acquire a number of shares of Warrant Stock to the extent that, upon such exercise, the number of
shares of Common Stock then beneficially owned by such holder and its Affiliates and any other persons or entities whose beneficial ownership of Common Stock would be aggregated with the Holder's for
purposes of Section 13(d) of the Exchange Act (including shares held by any "group" of which the holder is a member, but excluding shares beneficially owned by virtue of the ownership of
securities or rights to acquire securities that have limitations on the right to convert, exercise or purchase similar to the limitation set forth herein) exceeds 4.95% of the total number of shares
of Common Stock of the Company then issued and outstanding; provided that such threshold shall be 9.95% if on the date of issuance of this Warrant the number of shares of Common Stock beneficially
owned by such holder and its Affiliates and any other persons or entities whose beneficial ownership of Common Stock would be aggregated with the Holder's for purposes of Section 13(d) of the
Exchange Act (including shares held by any "group" of which the holder is a member, but excluding shares beneficially owned by virtue of the ownership of securities or rights to acquire securities
that have limitations on the right to convert, exercise or purchase similar to the limitation set forth herein) already exceeds 4.95% of the total number of shares of Common Stock of the Company
issued and outstanding on the date hereof. For purposes hereof, "group" has the meaning set forth in Section 13(d) of the Exchange Act and applicable regulations of the Securities and Exchange
Commission, and the percentage held by the holder shall be determined in a manner consistent with the provisions of Section 13(d) of the Exchange Act. Each delivery of a notice of exercise by a
Holder will constitute a representation by such Holder that it has evaluated the limitation set forth in this paragraph and determined, based on the most recent public filings by the Company with the
Commission, that the issuance of the full number of shares of Warrant Stock requested in such notice of exercise is permitted under this paragraph. 

        (ii)   In
the event the Company is prohibited from issuing shares of Warrant Stock as a result of any restrictions or prohibitions under applicable law or the rules or
regulations of any stock exchange, interdealer quotation system or other self-regulatory organization, the Company shall as soon as possible seek the approval of its stockholders and take
such other action to authorize the issuance of the full number of shares of Common Stock issuable upon exercise of this Warrant. 

        3.    Transfer, Division and Combination.    

        3.1.    Transfer.    The Warrants and the Warrant Stock shall be freely transferable, subject to compliance with all
applicable laws, including, but not limited to the Securities Act. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant or the resale of the Warrant Stock,
this Warrant or the Warrant Stock, as applicable, shall not be registered under the Securities Act, the Company may require, as a condition of allowing such transfer (i) that the Holder or
transferee of this Warrant or the Warrant Stock as the case may be, furnish to the Company a written opinion of counsel that is reasonably acceptable to the Company to the effect that such transfer
may be made without registration under the Securities Act, (ii) that the Holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable to the
Company and substantially in the form attached as Exhibit C hereto and (iii) that the transferee be an "accredited investor" as defined in
Rule 501(a) promulgated under the Securities Act. 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 such surrender and, if required, 

5

 

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. 

        3.2.    Restrictive Legends.    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 legends 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." 

Warrants
and shares of Common Stock issued upon the exercise of the Warrants issued to residents of British Columbia and Ontario must also bear the following legend: 

UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES SHALL NOT TRADE THE SECURITIES BEFORE [DATE]. 

        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 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.    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 

6

 

        (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. 

        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 

7

 

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 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, a holder of this Warrant 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 of this Warrant by the Company to be issued to 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.    Reorganization, Reclassification, Merger, Consolidation or Disposition of Assets.    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 successor or 

8

 

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 Current Market Price 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, 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 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. For purposes of Section 4, common stock of the successor or acquiring corporation shall include stock of such corporation of any class which is not
preferred as to dividends or assets on liquidation over any other class of stock of such corporation and which is not subject to redemption and shall also include any evidences of indebtedness, shares
of stock or other securities which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the happening of a specified event and any
warrants or other rights to subscribe for or purchase any such stock. 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 which, 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 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. 

9

  

        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 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 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 and character thereof, and (ii) the date on which any such
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 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 16.2. 

        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 articles of
incorporation 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 

10

 

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 (without regard to any ownership limitations provided in Section 2.4(i)). 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 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.    Registration Rights.    The resale of the Warrant Stock shall be registered in accordance with the terms and
conditions contained in that certain Investor Rights Agreement dated of even date hereof, among the Holder, the Company and the other parties named therein (the "Investor Rights Agreement"). The
Holder acknowledges that pursuant to the Investor Rights Agreement, the Company has the right to request that the Holder furnish information regarding such Holder and the distribution of the Warrant
Stock as is required by law or the Commission to be disclosed in the Registration Statement (as such term is defined in the Investor Rights Agreement), and the Company may exclude from such
registration the shares of Warrant Stock acquirable hereunder if Holder fails to furnish such 

11

 

information
within a reasonable time prior to the filing of each Registration Statement, supplemented prospectus included therein and/or amended Registration Statement. 

        10.    Supplying Information.    Upon any default by the Company of its obligations hereunder or under the Investor
Rights Agreement, the Company shall cooperate with the Holder in supplying such information as may be reasonably necessary for such Holder to complete and file any information reporting forms
presently or hereafter required by the Commission as a condition to the availability of an exemption from the Securities Act for the sale of any Warrant or Restricted Common Stock. 

        11.    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. 

        12.    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. 

        13.    Financial and Business Information.    

        13.1.    Quarterly Information.    The Company will deliver to the Holder, as soon as available and in any event
within 45 days after the end of each of the first three quarters of each fiscal year of the Company, one copy of an unaudited consolidated balance sheet of the Company and its subsidiaries as
at the end of such quarter, and the related unaudited consolidated statements of income, retained earnings and cash flow of the Company and its subsidiaries for such quarter and, in the case of the
second and third quarters, for the portion of the fiscal year ending with such quarter, setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal
year. Such financial statements shall be prepared by the Company in accordance with GAAP and accompanied by the certification of the Company's chief executive officer or chief financial officer that
such financial statements present fairly the consolidated financial position, results of operations and cash flow of the Company and its subsidiaries as at the end of such quarter and for such
year-to-date period, as the case may be; provided, however, that the Company shall have no obligation to deliver such quarterly information under this Section 13.1 to
the extent it is publicly available; and provided further, that if such information contains material non-public information, the Company shall so notify the Holder prior to delivery
thereof and the Holder shall have the right to refuse delivery of such information. 

        13.2.    Annual Information.    The Company will deliver to the Holder as soon as available and in any event within
90 days after the end of each fiscal year of the Company, one copy of an audited consolidated balance sheet of the Company and its subsidiaries as at the end of such year, and audited
consolidated statements of income, retained earnings and cash flow of the Company and its subsidiaries for such year; setting forth in each case in comparative form the figures for the corresponding
periods in the previous fiscal year; all prepared in accordance with GAAP, and which audited financial statements shall be accompanied by an opinion thereon of the independent certified public
accountants regularly retained by the Company, or any other firm of independent certified public accountants of recognized national standing selected by the Company; provided, however, that the
Company shall have no obligation to deliver such annual information under this Section 13.2 to the extent it is publicly available; and provided further, that if such information contains
material non-public information, the Company shall so notify the Holder prior to delivery thereof and the Holder shall have the right to refuse delivery of such information. 

12

 

        13.3.    Filings.    The Company will file on or before the required date all regular or periodic reports (pursuant to
the Exchange Act) with the Commission and will deliver to Holder promptly upon their becoming available one copy of each report, notice or proxy statement sent by the Company to its stockholders
generally. 

        14.    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. 

        15.    Redemption at Company's Election.    The Company may at the option of the Board, by at least thirty-days' prior
written notice to the Holder (the "Redemption Notice"), redeem this Warrant, in whole or in part, provided that (i) the Daily Market Price for
twenty consecutive trading days is equal to or greater than $6.30 and the average daily trading volume (subject to adjustment for stock dividends, subdivisions and combinations) of the Common Stock
for such twenty consecutive trading day period exceeds 100,000 shares, (ii) either (A) all of the Warrant Shares underlying this Warrant to be redeemed are then registered under an
effective registration statement or (B) may be sold pursuant to Rule 144 during a three-month period without registration under the Securities Act, (iii) sufficient shares of
Common Stock of the Company are authorized and reserved for issuance upon the full exercise of this Warrant, (iv) all of the Warrant Shares issuable upon exercise of this Warrant are then
listed on every stock exchange, market or bulletin board on which any Common Stock of the Company is then listed and (v) the Company is not in default of any material provision of any Related
Document (as defined in the Purchase Agreement). The Redemption Notice shall set forth a date, not less than thirty days after the date of the Redemption Notice, on which the redemption of this
Warrant shall occur (the "Redemption Date"). On the Redemption Date, (i) the Company shall pay the Holder by certified check an amount equal to
the product of (x) $0.01 (as adjusted in proportion to any adjustment to the Exercise Price pursuant to Section 3 hereof) multiplied by
(y) the number of Warrant Shares so redeemed; and (ii) the Holder shall deliver the original copy of this Warrant marked "REDEEMED" to the Company. If the Company shall redeem this
Warrant in part, the Company shall, at the Redemption Date, provided that the Holder shall have delivered the original copy of this Warrant marked "REDEEMED" to the Company, deliver to the Holder a
new Warrant evidencing the rights of the Holder to purchase the unredeemed shares of Common Stock called for by this Warrant, which new Warrant shall in all other respects be identical with this
Warrant. Nothing in this Section 15 shall prevent the exercise of the Warrants at any time prior to the Redemption Date. 

        16.    Miscellaneous.    

        16.1.    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. 

        16.2.    Notice Generally.    All notices, requests, demands or other communications provided for herein shall be in
writing and shall be given in the manner and to the addresses set forth in the Preferred Stock Purchase Agreement. 

        16.3.    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 

13

 

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. 

        16.4.    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. 

        16.5.    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, without invalidating the remainder of such provision or the remaining provisions of this Warrant. 

        16.6.    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. 

        16.7.    Governing Law.    This Warrant and the transactions contemplated hereby shall be deemed to be consummated in
the State of New York and shall be governed by and interpreted in accordance with the local laws of the State of New York without regard to the provisions thereof relating to conflicts of laws. The
Company hereby irrevocably consents to the exclusive jurisdiction of the State and Federal courts located in New York City, New York 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 16.2. 

[Signature
Page Follows] 

14

 

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

Dated:
May 10, 2004 

	 	 	 	GENETRONICS BIOMEDICAL CORPORATION
	

 	

 	
 	

 	

 
	

 	

 	
 	

By:	

/s/  AVTAR DHILLON      

	 	 	 	Name:	Avtar Dhillon
	 	 	 	Title:	Chief Executive Officer
	Attest:	 	 	 
	

 	

 	
 	

 	

 
	

By:	

/s/  ILLEGIBLE      
	
 	

 	

 
	Name:	 	 	 	 
	Title:	 	 	 	 

15

 
 
 

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 Genetronics Biomedical Corporation pursuant to the terms of the attached Warrant,
and tenders herewith payment of the purchase price of such shares in full. 

        2.     The
undersigned hereby elects to convert the attached Warrant into Common Stock of Genetronics Biomedical Corporation through "cashless exercise" in the manner specified
in the Warrant; provided that this election may not be made less than twelve (12) months after the Closing Date (as defined in the attached Warrant) and provided further that this election may
not be made if a Registration Statement (as defined in the Investor Rights Agreement) is then effective with respect to all shares of Common Stock issuable pursuant to the attached Warrant and sales
may be made pursuant to such Registration Statement. This conversion is exercised with respect to                        of the
shares of Common Stock covered by the Warrant. 

        3.     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)	
 	

 
	

 (State) (Zip 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. 

16

 
 
 

EXHIBIT B    
    
    ASSIGNMENT FORM    
    

FOR
VALUE RECEIVED the undersigned registered owner of this Warrant for the purchase of shares of common stock of Genetronics 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. 

17

 
 
 

EXHIBIT C    
    
    FORM OF INVESTMENT REPRESENTATION LETTER    
    

        In connection with the acquisition of [warrants (the "Warrants") to purchase            shares of common stock of Genetronics
Biomedical
Corporation (the "Company"), par value $0.001 per share (the "Common Stock")][    shares of common stock of Genetronics Biomedical Corporation (the "Company"), par
value $0.001 per share (the "Common Stock") upon the exercise of warrants by            ],
by                        (the "Holder")
from                        , the Holder hereby represents and
warrants to the Company as follows: 

        The
Holder (i) is an "Accredited Investor" as that term is defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended (the "Act");
and (ii) has the ability to bear the economic risks of such Holder's prospective investment, including a complete loss of Holder's investment in the Warrants and the shares of Common Stock
issuable upon the exercise thereof (collectively, the "Securities"). 

        The
Holder, by acceptance of the Warrants, represents and warrants to the Company that the Warrants and all securities acquired upon any and all exercises of the Warrants are purchased
for the Holder's own account, and not with view to distribution of either the Warrants or any securities purchasable upon exercise thereof in violation of applicable securities laws. 

        The
Holder acknowledges that (i) the Securities have not been registered under the Act, (ii) the Securities are "restricted securities" and the certificate(s) representing
the Securities shall bear the following legend, or a similar legend to the same effect, until (i) in the case of the shares of Common Stock underlying the Warrants, such shares shall have been
registered for resale by the Holder under the Act and effectively been disposed of in accordance with a registration statement that has been declared effective; or (ii) in the opinion of
counsel for the Company such Securities may be sold without registration under the Act: 

        "[NEITHER]
THE SECURITIES REPRESENTED BY THIS CERTIFICATE [NOR THE SECURITIES INTO WHICH THEY ARE EXERCISABLE] HAVE
[NOT] BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND ALL SUCH SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AS SET FORTH IN THIS
CERTIFICATE. [NEITHER] THE SECURITIES REPRESENTED HEREBY [NOR THE SECURITIES INTO WHICH THEY ARE EXERCISABLE] MAY [NOT] BE SOLD,
TRANSFERRED, OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN OPINION OF COUNSEL,
REASONABLY ACCEPTABLE TO COUNSEL FOR THE COMPANY, TO THE EFFECT THAT THE PROPOSED SALE, TRANSFER, OR DISPOSITION MAY BE EFFECTUATED WITHOUT REGISTRATION UNDER THE ACT." 

18

 

        IN
WITNESS WHEREOF, the Holder has caused this Investment Representation Letter to be executed in its corporate name by its duly authorized officer this    day of
                        200    . 

	[Name]	 	 
	

 	

 	
 	

 
	

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QuickLinks

COMMON STOCK PURCHASE WARRANT

EXHIBIT A SUBSCRIPTION FORM

EXHIBIT B ASSIGNMENT FORM

EXHIBIT C FORM OF INVESTMENT REPRESENTATION LETTER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]