Document:

Exhibit
4.4

PREFERRED
STOCK EXCHANGE AGREEMENT

THIS PREFERRED
STOCK EXCHANGE AGREEMENT (this “Agreement”)
is made and entered into as of September 15, 2006 by and among INOVIO
BIOMEDICAL CORPORATION, a Delaware corporation (the “Company”), and                      ,
a                     (the
“Investor”).

RECITALS:

A.            Investor is the
holder of                      shares
of the Series C Series C Cumulative Convertible Preferred Stock, $10,000
liquidation preference per share, par value $0.001 per share of the Company
(the “Preferred Stock”);

B.            Investor desires to
exchange the Preferred Stock with the Company for (1) shares common stock,
$0.001 par value, of the Company (the “Common
Stock”) and (2) Warrants (as hereinafter described and the Company desires
to issue and exchange its Common Stock and Warrants with Investor for the
Preferred Stock;

AGREEMENT:

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants
contained in this Agreement, the Company and Investor agrees as follows:

1.             DEFINITIONS. For all purposes of this Agreement, the
following capitalized terms have the meanings indicated in this Section.

“AMEX” means the American Stock Exchange.

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

“ClosingDate” means the
Closing Date as defined in the Securities Purchase Agreement.

“Closing”means the closing of
the Exchange pursuant to Section 2.

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

“CommonStock”has the meaning set
forth in Paragraph B of the Recitals

“Company”has meaning therefor as set forth in
the first paragraph of this Agreement.

“Exchange”means the exchange at the Closing
between the Company and the Investor at the Closing of the Investor’s Preferred
Stock for the Shares and Warrants Company on the terms and conditions of this
Agreement.

“Investor’sName”means the name and
address of, and other information concerning, the Investor as appearing on the
certificate(s) for the Preferred Stock surrendered in exchange for the Shares
and Warrants pursuant to this Agreement.

“Investor”has meaning therefor as set forth in the
first paragraph of this Agreement.

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

“PreferredStock”has the meaning set forth in Paragraph A of the Recitals.

“Purchasers”mean the parties to the Registration Rights
Agreement other than the Company.

“RegistrationRights Agreement”means the Registration Rights Agreement dated
as of September 15, 2006 between the Company and the other parties thereto in
substantially the form of Exhibit A.

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

“Securities
Purchase Agreement”means
that certain Securities Purchase Agreement dated September 15, 2006 by and
among the Company and the parties identified on the signature pages thereto.

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

“Shares”mean the shares of Common
Stock to be issued in accordance with this Agreement upon surrender of the
Preferred Stock at the Closing, which Shares (as proportionately adjusted for
stock splits, stock dividends and similar events occurring prior to the
Closing) shall be equal to the product (rounded down to nearest whole number)
of (a) the number of shares of Preferred Stock surrendered by Investor,
multiplied by (b) the quotient resulting by dividing the sum of (i) US$10,000 plus any accrued and unpaid dividends on the Preferred Stock
by (ii) US$2.43.

“Short
Sale”means a sale of
Common Stock that is marked as a short sale and that is executed at a time when
the Investor has no equivalent offsetting long position in the Common Stock.  For purposes of determining whether the
Investor has an equivalent offsetting long position in the Common Stock, all
Common Stock and all Common Stock that would be issuable upon conversion or
exercise in full of all Common Stock Equivalents then held by the Investor
(assuming that such Common Stock Equivalents were then fully convertible or
exercisable, notwithstanding any provisions to the contrary, and giving effect
to any conversion or exercise price adjustments scheduled to take effect in the
future) shall be deemed to be held long by the Investor.

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

“Warrants” mean warrants to purchase 35 percent of the
number of Shares at an exercise price of $2.87 per share (as
proportionately adjusted for stock splits, stock dividends and similar events
occurring prior to the Closing) in substantially the form of Exhibit B
to this Agreement; provided, however,
that if any Warrants would result in the purchase of a fractional share, the
number of shares issuable upon exercise of the Warrants will be rounded down to
the nearest whole share.2. EXCHANGE; CLOSING; CONDITIONS

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(a)           Exchange of Shares. On and
subject to the terms and conditions of this Agreement, at the Closing the Investor
shall deliver to the stock certificate(s) evidencing the Preferred Stock
against delivery by the Company to the Investor of

(i)            a copy of, and written
acknowledgement by the Company’s transfer agent of, irrevocable instructions
duly signed by an authorized signatory of the Company addressed to the Company’s
transfer agent instructing the transfer agent to deliver, on an expedited basis
and no later than the third trading day after the Closing Date, one or more
certificates evidencing the Shares registered in the Investor’s Name.; and

(ii)           one or more certificates evidencing
the Warrants, registered in the name of Investor’s Name.

(b)           Closing Conditions; Deliveries.

(i)            The obligations of the Investor to
exchange its Preferred Stock for the Shares and Warrants are subject to the
satisfaction or waiver by Investor of each of the following conditions:

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

b.             On the Closing Date, the Company
shall deliver or cause to be delivered to Investor the following (each document
to be reasonably satisfactory in form and substance to the Investor):

(1)           The documents described in Section
2(a) and the Registration Rights Agreement duly executed by the Company.

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

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

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

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

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

v.             such other matters as the Investor may reasonably
request;

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c.             Confirmation from AMEX, or a letter
from the Company, based upon (and summarizing) a discussion with AMEX,
confirming that the Company’s issuance of the Shares and Warrants in exchange
for the Preferred Stock does not require approval of the Company’s
stockholders;

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

e.             A certificate of good standing of
the Company as of a recent date.

f.              AMEX shall have notified the
Company that the Shares the Warrant Shares have been approved for listing on
AMEX, subject only to official notice of issuance; and

g.             There shall not be any injunction,
judgment, order, decree, ruling, or charge in effect preventing consummation of
any of the transactions contemplated by this Agreement.

(ii)           The obligations of the Company to
issue and exchange the Shares and Warrants to the Investor for the Preferred
Stock are subject to the satisfaction or waiver by the Company of each of the
following conditions:

a.             On the Closing Date, the Investor
shall deliver or cause to be delivered to the Company the stock certificate(s)
evidencing the Preferred Stock and the Registration Rights Agreement duly
executed by the Investor;

b.             All representations and warranties
of the Investor contained herein shall remain true and correct as of the
Closing Date and all covenants of the Investor shall have been performed if due
prior to such date;

c.             The Company shall have obtained
confirmation from AMEX that the Company’s issuance of the Shares and Warrants
in exchange for the Preferred Stock does not require approval of the Company’s
stockholders; and

d.             There shall not be any injunction,
judgment, order, decree, ruling, or charge in effect preventing consummation of
any of the transactions contemplated by this Agreement

(iii)          On the Closing Date, the Investor
shall have delivered or caused to be delivered to the Company the following:

(c)           Deadline. Notwithstanding anything to the contrary
contained in this Agreement, in the event that the closing of the transaction
contemplated by the Securities Purchase Agreement does not occur, neither of
the parties hereto shall be obligated to consummate the exchange contemplated
by this Agreement and this Agreement may be terminated upon notice given by
either party to the other.

(d)           Closing.  The
Closing of the Exchange shall take place remotely via facsimile and other
electronic transmissions on the Closing Date.

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3.             REPRESENTATIONS AND WARRANTIES CONCERNING THE EXCHANGE.

(a)           Representations
and Warranties of the Company. The Company represents and warrants to
Investor that the statements contained in this Section B.3(a) are correct and
complete as of the date of this Agreement and will be correct and complete as
of the Closing.

(i)           Securities. The Shares and the Warrants have been duly authorized and upon
issuance to the Investor will be validly issued, fully paid and non-assessable.
The Warrants have been duly authorized and upon issuance to the Investor in
accordance with terms of this Agreement will be validly issued and binding upon
the Company in accordance with the terms of the Warrants. The Warrant Shares have been duly authorized
and reserved for issuance and when issued and delivered pursuant to the terms
of the Warrants will be validly issued, fully paid and non-assessable.

(iii)         Organization. The Company is duly organized, validly
existing, and in good standing under the laws of the jurisdiction of its
incorporation.

(iv)         Authorization of Transaction. The Company has full corporate to execute and
deliver this Agreement and to perform its obligations hereunder. This Agreement
constitutes the valid and legally binding obligation of the Company,
enforceable in accordance with its terms and conditions. The Company need not
give any notice to, make any filing with, or obtain any authorization, consent,
or approval of any government or governmental agency in order to consummate the
transactions contemplated by this Agreement other than pursuant to (1) the
Registration Rights Agreement; (2) the filings with the Commission of Forms 8-K
appropriate reporting the transactions contemplated by this Agreement; and (3)
application(s) to AMEX for the listing of the Shares and Warrant Shares for
trading thereon in the time and manner required thereby.

(v)           Non-contravention.
Neither the execution and the delivery of this Agreement, nor the consummation
of the transactions contemplated hereby, will violate any constitution,
statute, regulation, rule, injunction, judgment, order, decree, ruling, charge,
or other restriction of any government, governmental agency, or court to which
the Seller is subject or, if the Seller is a corporation, any provision of its
charter or bylaws.

(vi)         Exchange Solicitation and
Consideration. The
Company has not paid or given, directly or indirectly, any commission or other remuneration for soliciting the exchange contemplated hereby and the only consideration being received by
the Company for the issuance of the Shares and Warrants to the Investor is the
Preferred Stock.

(b)           Representations
and Warranties of Investor. Investor represents and warrants to the Company
that the statements contained in this section B.3(b) are correct and complete
as of the date of this Agreement and will be correct and complete as of the
Closing.

(i)           Organization of the Investor. If not a natural person, Investor is an
entity duly organized, validly existing, and in good standing under the laws of
the jurisdiction of its organization.

(ii)          Authorization of Transaction. Investor has full power and authority to
execute and deliver this Agreement and to perform its obligations hereunder.
This Agreement constitutes the valid and legally binding obligation of
Investor, enforceable in accordance with its terms and conditions. Investor
need not give any notice to, make any filing with, or obtain any 

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authorization,
consent, or approval of any government or governmental agency in order to
consummate the transactions contemplated by this Agreement.

(iii)         Non-contravention. Neither the execution and the delivery of
this Agreement, nor the consummation of the exchange contemplated hereby, will
violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which Investor is subject or any provision of
its organizational documents.

(iv)         Exchange Solicitation and
Consideration.
Investor has not paid or given, directly or
indirectly, any commission or other remuneration for soliciting the exchange contemplated hereby and the only consideration being received by
the Investor for its exchange and delivery of the Preferred Stock to the
Company are the Shares and Warrants.

(v)           Section 3(a)(9) Exemption. The Investor understands that the Company is
relying on Section 3(a)(9) of the Securities Act in connection with the
issuance and exchange of the Shares and Warrants for the Preferred Stock and
that for such exemption to be available to the Company the issuance must
involve a security exchanged by the issuer with its existing security holder exclusively
where no commission or other remuneration is paid or given directly or
indirectly for soliciting such exchange. The Investor knows of no reason that
would disqualify the Company from relying on the exemption afforded by Section
3(a)(9) of the Securities Act in connection with the Exchange. In the event
that the Investor is participating in the financing that is the subject of the
Securities Purchase Agreement its investment decision to so participate has
been made independent of, and without regard to, the Exchange contemplated by
this Agreement. Neither the Company nor the Investor has bargained for Investor’s
participation, or otherwise required Investor to participate, in the financing
contemplated by the Securities Purchase Agreement in consideration of, or to
induce Investor to engage in, the Exchange, or bargained for or otherwise
required Investor to engage in the Exchange in consideration of Investor’s
participation, or to induce Investor to participate, in the financing
contemplated by the Securities Purchase Agreement.

(vi)         Title to the Preferred Stock. Investor holds of record and owns
beneficially the Preferred Stock, free and clear of any restrictions on
transfer (other than any restrictions under the Securities Act and state
securities laws), taxes, liens encumbrances, options, warrants, purchase
rights, contracts, commitments, equities, claims, and demands. Investor is not
a party to any option, warrant, purchase right, or other contract or commitment
(other than this Agreement) that could require Investor to sell, transfer, or
otherwise dispose of the Preferred Stock or the shares of the Common Stock
issuable upon conversion of the Preferred Stock. Investor is not a party to any
voting trust, proxy, or other agreement or understanding with respect to the
voting of the Preferred Stock or any shares of Common Stock issuable upon
conversion of the Preferred Stock.

(vii)        Investment. The Investor is acquiring the Shares and
Warrants, and upon exercise of the Warrants will acquire the Warrant Shares, as
principal for its own account for investment purposes only and not with a view
to or for distributing or reselling such Securities or any part thereof, has no
present intention of distributing any of such Securities and has no arrangement
or understanding with any other Persons regarding the distribution of such
Securities (this representation and warranty not limiting the Investor’s right
to sell the Securities in compliance with the terms of this Agreement, the
Securities and applicable federal and state securities laws at any time).

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(viii)        No Short Positions.  Investor has not entered, during the 30 days
prior to the date of this Agreement, and shall not enter, from the date of this
Agreement through 48 hours after the Closing Date, into any Short Sales.

(ix)         Disclosure of Information.  The
Investor has received or has had full access to all the information it
considers necessary or appropriate to make an informed investment decision with
respect to the Exchange. The Investor further has had an opportunity to ask
questions and receive answers from the Company regarding the terms and
conditions of the Exchange (to the extent the Company possessed such
information or could acquire it without unreasonable effort or expense)
necessary to verify any information furnished to the Investor or to which the
Investor had access. The foregoing, however, does not in any way limit or
modify the representations and warranties made by the Company in Section
B.3(a).

(x)           Accredited Investor Status.  The
Investor is an “accredited investor” within the meaning of Regulation D
promulgated under the Securities Act.

(xi)         Restricted Securities.  The
Investor understands that the Shares and Warrants are characterized as “restricted
securities” under the Securities Act inasmuch as they are being acquired in
exchange for the Preferred Stock which are “restricted securities” and that
under the Securities Act and applicable regulations thereunder such Securities
may be resold without registration under the Securities Act only in certain
limited circumstances. The Investor is familiar with Rule 144 of the SEC, as
presently in effect, and understands the resale limitations imposed thereby and
by the Securities Act. The Investor understands that, the Company is under no
obligation to register any of the Securities issued or to be issued hereunder
except as provided in the Registration Rights Agreement.

(xii)        Further Limitations on Disposition.  Without in any way limiting the
representations set forth above, the Investor further agrees not to make any
disposition of all or any portion of the Exchanged Shares unless and until:

a.             there is then in effect a registration statement under
the Securities Act covering such proposed disposition and such disposition is
made in accordance with such registration statement; or

b.             the Investor has notified the Company of the proposed
disposition and has furnished the Company with a statement of the circumstances
surrounding the proposed disposition, and the Investor has furnished the
Company, at the expense of the Investor or its transferee, with an opinion of
counsel, reasonably satisfactory to the Company, that such disposition will not
require registration of such Securities under the Securities Act.

(xiii)       Transfer of Shares. Notwithstanding the provisions of Section
B.3(b)(xii), no such registration statement or opinion of counsel will be
required for any transfer of any Shares in compliance with Rule 144, Rule 144A
or Rule 145(d) of the Securities Act, or any successor or additional similar rule,
or if such transfer otherwise is exempt, in the view of the Company’s legal
counsel, from the registration requirements of the Securities Act, provided
that, in the case of any transfer that is otherwise exempt, the transferee
agrees in writing to be subject to the terms of this Section 4 to the same
extent as if the transferee were the original Investor hereunder.

(xiv)       Transfer of Warrants. Notwithstanding any provision of this
Agreement to the contrary, the Investor agrees that the Warrants may not be
transferred, assigned or otherwise disposed of unless such transfer (a)
complies with state and federal securities laws and (b) is to (A) a non-”U.S.
Person” as defined in Regulation S as promulgated under the 

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Securities
Act, and (B) a Person that at the time of transfer is (x) an “accredited
investor” within the meaning of Rule 501(a) of Regulation D under the
Securities Act, or (y) a “Qualified Institutional Buyer” within the meaning of
Rule 144A(a)(1) of the Securities Act, or (z) an affiliate of the Investor as
the term “affiliate” is defined and applied under Rule 501(b) of Regulation D
under the Securities Act.  The Investor
further agrees that it shall be a condition of any transfer of the Warrants
complying with the provisions of the forgoing sentence that the transferee must
in writing (x) agree to be bound by the transfer restrictions set forth in this
Section B.3(b)(xiv), (y) represent to the Company that such transferee meets
the conditions set forth in clause b) of this Section  B.3(b)(xiv), and (z) provide the
representations and warranties to the Company set forth in Sections B.3(b)(i)
to (iii), (vii) to (xiii) and (xv) of this Agreement.

(xv)         Legends.

a.             Investor understands and agrees
that certificates evidencing the Shares, Warrants and Warrant Shares when
issued to Investor, will bear the legend set forth below.

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF
CERTAIN STATES.  THESE SECURITIES ARE
SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE
STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN
OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE ISSUER
TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE
ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

b.             Investor further understands and agrees
certificates evidencing the Warrants will bear following additional legend:

TRANSFER
OF THESE WARRANTS IS FURTHER RESTRICTED PURSUANT TO THE PROVISIONS OF THAT
CERTAIN PREFERRED STOCK EXCHANGE AGREEMENT BETWEEN THE ISSUER AND THE HOLDER, A
COPY OF WHICH IS AVAILABLE AT THE OFFICES OF THE ISSUER UPON REQUEST

4.             MISCELLANEOUS.

(a)           Fees
and Expenses.  Each party
shall pay the fees and expenses of its advisers, counsel, accountants and other
experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this
Agreement.

(b)           Entire Agreement.  This Agreement,  together with its exhibits contain the entire
understanding of the parties with respect to the subject matter hereof and supersede
all prior agreements and understandings, oral or written, with respect to such
matters, which the parties acknowledge have been merged into such documents,
exhibits and schedules.

(c)           Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) one
Business Day after the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number set forth on the signature
pages

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

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

(e)           Construction.  The headings herein are for convenience only,
do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.  The
language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent, and no rules of strict construction
will be applied against any party.

(f)            Successors and
Assigns.  This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and
permitted assigns. Neither the Company nor the Investor may assign this
Agreement or any rights or obligations hereunder without the prior written
consent of the other. Any assignment or transfer or purported assignment or
transfer in violation of this Section shall be void.

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

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

(i)            Governing Law.  All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of
California, without regard to the

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principles of conflicts of law thereof. 
Each party hereby irrevocably submits to the non-exclusive jurisdiction
of the state and federal courts sitting in Los Angeles, California, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper or inconvenient venue for such
proceeding.  Each party hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Agreement
(provided that for deliveries to addresses outside of the United States, such
copy shall be delivered to such address by internationally recognized overnight
courier) and agrees that such service shall constitute good and sufficient
service of process and notice thereof. 
Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law.  To the extent permitted by the law applicable
to the court in which claims hereunder may be adjudicated, each of the parties
hereby waives all rights to a trial by jury. If any party shall commence an
action or proceeding to enforce any provisions of this Agreement, then the
prevailing party in such action or proceeding shall be reimbursed by the
non-prevailing party for its attorneys’ fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such action or
proceeding.

(j)            Survival.  The representations and warranties herein
shall survive the Closing and delivery of the Shares and Warrants and upon
exercise of the Warrants, the Warrants Warrant Shares.

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

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

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

(n)           Remedies.  In addition to being entitled to exercise all
rights provided herein or granted by law, including recovery of damages, each
of the Purchasers and the Company will be entitled to specific performance
under this Agreement.  The parties agree
that

 10
 

monetary damages may not be adequate compensation for any loss incurred
by reason of any breach of obligations described in the foregoing sentence and
hereby agrees to waive in any action for specific performance of any such
obligation the defense that a remedy at law would be adequate.

(o)           Registration Rights.
Effective on the “Exchange Date” (as defined in the Registration Rights
Agreement) the Company agrees to provide to the Investor and its permitted
assignees and transferees the same registration rights in respect of the Shares
issued upon the Exchange and the Warrant Shares issuable upon exercise of the
Warrants as the Purchasers have under the Registration Rights Agreement and the
Investor agrees that it and its permitted assigns shall be subject to same
obligations to the Company under the Registration Rights Agreement as those of
the Purchasers under the Registration Rights Agreement. For purposes of
construing the Registration Rights Agreement as made applicable to the Shares
and Warrants Shares issuable as contemplated by this Agreement, the Investor
shall be considered as though it were one of the “Purchasers” under the
Registration Rights Agreements and the Investor’s Shares and Warrant Shares
shall be deemed included within the definition of “Registrable Securities”
thereunder; provided, however, that any term or
provision of the Registration Rights Agreement unique to the context of the
transactions contemplated by the Registration Rights Agreement (other than the
definition of “Exchange Date,” the occurrence of which as defined and specified
in the Registration Rights Agreement shall operate to trigger the Company’s
obligations to register the Shares and Warrant Shares to be issued in the
Exchange contemplated by this Agreement that would be irrelevant, inapplicable
or extraneous when considered in the context of this Agreement and the Exchange
contemplated by this Agreement shall be disregarded.

(Signature Pages Follow)

 11
 

 

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

 

	
  INOVIO BIOMEDICAL
  CORPORATION

  	
  Address for Notice:

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  Inovio Biomedical Corporation

  
	
   

  	
  Name: Avtar Dhillon, MD

  	
  Attention: Peter Kies

  
	
   

  	
  Title:   President and Chief
  Executive Officer

  	
   Chief
  Financial Officer

  
	
   

  	
  11494 Sorrento Valley Road

  
	
   

  	
  San Diego, California 92121-1334

  
	
   

  	
  Telephone: (858) 597-6006

  
	
   

  	
  Fax: (858) 597-0451

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  
	
  Mark A. Klein,
  Esq.

  	
   

  
	
  Kirkpatrick
  & Lockhart, Nicholson Graham, LLP

  	
   

  
	
  10100 Santa
  Monica Blvd. 7th Floor

  	
   

  
	
  Los Angeles, CA
  99067

  	
   

  
				

 

REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK

(Signature
Page for Investor Follows)

 12
 

 

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

Name of Investor:
________________________________________________________

Signature
of Authorized Signatory of Investor: __________________________________

Name of Authorized
Signatory: ____________________________________________________

Title of
Authorized Signatory: _____________________________________________________

Email Address of
Authorized Entity:________________________________________________

Address for Notice
of Investing Entity:

_________________________________

_________________________________

_________________________________

_________________________________

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

_________________________________

_________________________________

_________________________________

_________________________________

Number of shares
Preferred Stock being exchanged: 

Accrued Dividends
on Preferred Stock  $

Number of Shares
to be received on the Exchange: 

Warrants to
Purchase Number of Warrant Shares: 

 13Untitled Page

		

			

			

			Exhibit 10.1

				

			

		

		
			FORBEARANCE AND SETTLEMENT AGREEMENT

		

		

		          THIS FORBEARANCE AND SETTLEMENT AGREEMENT (the “Agreement”) is made and entered into effective as of December 29, 2006, between XINHUA CHINA LTD., a Nevada corporation (the “Company”), CORNELL CAPITAL PARTNERS, L.P. (“Cornell”), and HIGHGATE HOUSE FUNDS, LTD. (“Highgate”).  Cornell and Highgate are collectively referred to herein as the “Buyers.” All terms not otherwise defined herein shall have the meaning ascribed to them in the Securities Purchase Agreement (as defined below).

		          WHEREAS, in connection with the Securities Purchase Agreement among the Company and the Buyers entered into on November 23, 2005, as amended on March 23, 2006 (“Securities Purchase Agreement”) the Company has issued to the Buyers the following convertible debentures (the “Convertible Debentures”), which, as of December 29, 2006, have outstanding principal and accrued and unpaid interest stated in table below:

			

		

			
					

					Buyers Name:

					
					Issuance Date of

							Debenture:

					
					Outstanding

							Principal:

					
					Outstanding

							Interest:

				
	
					Highgate

					
					November 23, 2005

					
					$1,250,000

					
					$27,465.75

						

					

				
	
					Cornell

					
					March 23, 2006

					
					$2,000,000

					
					$30,794.52

						

					

				

		          WHEREAS, in connection with the Securities Purchase Agreement, on November 23, 2005, as amended on March 23, 2006 the Company and the Buyers also entered in (a) an Investor Registration Rights Agreement (the “Registration Rights Agreement”), (b) a Security Agreement (the “Security Agreement”), and (c) along with Pacific Stock Transfer, Irrevocable Transfer Agent Instructions (the “Transfer Agent Instructions”).  The Convertible Debentures, the Securities Purchase Agreement, the Registration Rights Agreement, Security Agreement, the Transfer Agent Instructions, and all other agreements entered into between the Company and Buyers in connection therewith are collectively referred to herein as the “Transaction Documents”. 

			

			          WHEREAS, the Company has an opportunity to sell its Beijing Boheng Investments subsidiary (the “Subsidiary”) for a purchase price which will be paid to the Company periodically over the course of approximately two years and which sale of the Subsidiary requires the consent of Cornell and Highgate. 

			

			          WHEREAS, the Company wishes to use the proceeds from the sale of the Subsidiary as received to repay principal and accrued and unpaid interest due to the Buyers under the Convertible Debentures under the terms and conditions as set forth herein.

			

			          WHEREAS, in connection with the Securities Purchase Agreement, on November 23, 2005, the Company issued to Highagte a warrant (the “Warrant”) to purchase 1,035,000 shares of the Company’s common stock (the “Warrant Shares”). 

			

			

			

			

		

		

		

		

		

		

		          WHEREAS, the Company acknowledges that it has failed to obtain effectiveness of the Registration Statement within 120 days after filing thereof (the Registration Statement was filed on March 28, 2006), which requires the Company to pay to the holders of the Convertible Debentures as liquidated damages and not as a penalty, a cash amount equal to two percent (2%) per month of the outstanding principal amount of the Convertible Debentures outstanding starting within three (3) business days from the end of the month in which the Scheduled Effective Deadline occurred.

		

		          NOW, THEREFORE, in consideration of the mutual promises, conditions and covenants contained herein and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

		

		1.       The Company hereby acknowledges, confirms and agrees:

		
				a.     	That amounts owed, together with interest accrued and accruing thereon (collectively, the “Obligations”) now or hereafter payable by the Company to the Buyers under the Convertible Debentures and the Transaction Documents are unconditionally owing by the Company to the Buyers, without offset, setoff, defense or counterclaim of any kind, nature or description whatsoever.
	  	
	b.	That: (1) each of the Transaction Documents to which it is a party has been duly executed and delivered to the Buyers by the Company, and each is in full force and effect as of the date hereof, (2) the agreements and obligations of the Company contained in such documents and in this Agreement constitute the legal, valid and binding obligations of the Company, enforceable against it in accordance with their respective terms, and the Company has no valid defense to the enforcement of such obligations, (3)  the Buyers are and shall be entitled to the rights, remedies and benefits provided for in the Transaction Documents and applicable law, without offset, setoff, defense or counterclaim of any kind, nature or descriptions whatsoever, and (4) it has no claims, actions, cause of action, suits, judgments, and demands whatsoever, in law, admiralty or equity, against the Buyers or their affiliates.
	  	
	c.	That the Buyers have and shall continue to have valid, enforceable and perfected first-priority liens upon and security interests in the Pledged Property (as defined in the Transaction Documents) heretofore granted pursuant to the Security Agreement, or otherwise granted to or held by the Buyer.
	  	
	d.	That as of November 28, 2006, the Company owes to the Buyers liquidated damages pursuant to Section 2(c) of the Registration Rights Agreement in an amount equal to $260,000 plus an additional $65,000 for each month thereafter (collectively, the “Accrued Liquidated Damages”) for failure to have the registration statement timely declared effective by the SEC.    

		

		2.       In reliance upon the representations, warranties and covenants of the Company contained in this Agreement, and subject to the terms and conditions set forth herein, the Buyers hereby 

			

			

			

			

		

		

		

		

		

		

		waive on a one-time basis only the Accrued Liquidated Damages (subject to Section 5 below) and further agree to forbear from exercising its rights and remedies under the Transaction Documents or applicable law in respect of or arising out of the Company’s failure to timely pay the Accrued Liquidated Damages, subject to the conditions, amendments and modifications contained herein for the period (the “Forbearance Period”) commencing on the date hereof and continuing for so long as the following conditions are met: (i) the Company strictly complies with the terms of this Agreement and (ii) there is no occurrence or existence of any event of default, other than those related to the Accrued Liquidated Damages under the Transaction Documents.

		

		3.       Repayment of the Debenture.  The Company shall pay the Buyers the Scheduled Payment Amounts (as set forth below) on or prior to the date that is thirty (30) business days from the date of each Scheduled Payment Date (as set forth below) towards the repayment of the outstanding principal and interest of the Convertible Debentures.  Such payments, when received by the Buyers, shall be applied first towards accrued and unpaid interest on both the Cornell and Highgate Convertible Debentures and then towards the outstanding principal beginning with the Cornell Convertible Debenture first and after all amounts have been repaid on the Cornell Convertible Debenture, then towards the Highgate Convertible Debenture.  The parties agree that the Redemption Premium (as defined in the Convertible Debentures) shall not apply on any Scheduled Payment Amounts paid by the Company in accordance with this Agreement.

		

		
				
						Scheduled Payment Date

						
						Scheduled Payment Amount

					
	
						March 10, 2007

						
						$250,000

					
	
						June 30, 2007

						
						$375,000

					
	
						October 31, 2007

						
						$375,000

					
	
						January 31, 2008

						
						$250,000

					
	
						July 31, 2008

						
						$625,000

					
	
						December 31, 2008

						
						Remaining balances on the Convertible Debentures after taking into account all Scheduled Payments made and all conversion as set forth below.

					

		

		4.       Conversion of the Debenture.  During the Forbearance Period, during the time between the Buyer’s receipt of each Scheduled Payment Amount (each a “Conversion Period”) the Buyers shall convert the Convertible Debentures in accordance with the terms thereof in an amount equal to at least the amount of the prior Scheduled Payment Amount (the “Required Conversion Amount”) subject to the following: (a) for clarification, the Required Conversion Amount shall mean: (i) that the Buyers shall convert as much of the Convertible Debentures up to at least the Scheduled Payment Amount as is possible provided that such Conversion Shares may all be immediately resold by the Buyers under an exemption from registration; and (ii) any remaining portion of the Required Conversion Amount with respect to a particular Scheduled Payment Amount which was not converted due to the inability for resale by the Buyers under an exemption from registration, the Buyers shall convert such remaining portion of the Required

			

			

			

			

		

		

		

		

		

		

		Conversion Amount as soon as such Conversion Shares are able to be resold by the Buyers under an exemption from registration, and (b) in no event shall the Required Conversion Amount for any particular Conversion Period require the Buyers to convert into a number of shares which would exceed 30% of the total volume of the Common Stock according to Bloomberg LP during the thirty trading days immediately preceding the first day of such Conversion Period.  Counsel to the Company shall provide a legal opinion for use by the Buyers when resale is available for such Conversion Shares under Rule 144, in a form reasonably satisfactory to the Buyers, opining that the allowable amount under Rule 144 of such Conversion Shares may in fact be sold by the Buyers absent registration.  In the event that the Buyers convert more than the applicable Required Conversion Amount in any Conversion Period, the Buyer may allocate the amount converted above the Required Conversion Amount towards the Required Conversion Amount during subsequent Conversion Periods.

		

		5.       Liquidated Damages.  The Company and the Buyers agree that during the Forbearance Period the Buyers shall not attempt to collect any of the Accrued Liquidated Damages and no additional liquidated damages shall accrue during the Forbearance Period.  Upon repayment of all the Scheduled Payment Amounts in accordance with this Agreement, the Buyers shall permanently waive payment of the Accrued Liquidated Damages.  Immediately upon the termination or expiration of the Forbearance Period, if all the Scheduled Payment Amounts have not been paid by the Company, then liquidated damages shall automatically and without any further action start accruing from the date a Scheduled Payment Amount had not be paid by the Company and the Buyers’ waiver of the Accrued Liquidated Damages owing prior to the date of entering into this Agreement shall be null and void and the Company shall been responsible for paying all the Accrued Liquidated Damages that were owing to the Buyers prior to entering into this Agreement.

		

		6.       Termination of Forbearance Period.  Upon the termination or expiration of the Forbearance Period, the agreement of the Buyers to forbear shall automatically and without further action terminate and be of no force and effect.

		

		7.       Exercise of the Warrant.   Highgate shall exercise its right to purchase Warrant Shares pursuant to the Warrant on a cashless basis in an amount 200,000 shares of common stock of the Company in every three month period beginning on the date hereof.  The Company shall arrange for counsel to the Company to issue a customary Rule 144 legal opinion to the extent that such Warrant Shares may be resold in accordance with Rule 144.   
		8.       Registration Statement. On the date hereof the Company shall withdraw the Registration Statement filed on March 28, 2006 with the SEC in connection with the Convertible Debentures.  During the Forbearance Period, the Company shall not be required to file or obtain effectiveness of a Registration Statement.  Within thirty days after the termination or expiration of the Forbearance Period, if the Convertible Debentures have not been repaid to the Buyers in full, the Company shall re-file a Registration Statement with the SEC for the resale of the shares of common stock underlying the Convertible Debentures and the Warrants.  The Company shall have such Registration Statement declared effective by the SEC within ninety days of the filing thereof.   

			

			

			

			

		

		

		

		

		

		

		9.       Consent to any Organizational Change. The Company and the Buyers agree that during the Forbearance Period the Buyers hereby waive the requirement for the Company to receive the written consent of each Buyer for any Organizational Change to be directly or indirectly consummated by the Company.  However, the Company agrees to advise the Buyers of any Organizational Change prior to it taking effect.  The Company represents and warrants to the Buyers that it has no current intentions to effectuate an Organizational Change.  Notwithstanding the forgoing, the Company covenants that it will not effectuate any stock splits for at least six months from the date hereof without the consent of the Buyers. 
		10.      Termination of Security Shares. The Company and the Buyers agree that effective immediately upon receipt by the Buyers of the first Scheduled Payment Amount, the provision for Security Shares as set forth in Section 9 of the Securities Purchase Agreement and in Section 2 of the Transfer Agent Instructions shall be terminated and no longer of any force and effect.

		11.      The Company represents and warrants that it will not be secured against the assets of the Subsidiary being sold.  Furthermore, if the Company does obtain any security interest in the assets of the Subsidiary being sold or in any other assets to secure the payment obligations of the purchasing party to the Company, the Company will make arrangements (if it does not occur automatically pursuant to the Security Agreement) to collaterally assign to the Buyers any such security interest granted to the Company until payment in full of the Convertible Debentures. 

		12.      The Company shall disclose the contents of this Agreement on a Form 8-K or such other form as may be applicable within 4 days of the date hereof.  Such disclosure shall be reviewed by counsel to the Company prior to its filing. 

		13.      This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same instrument.  This Agreement shall be accepted, effective and binding, for all purposes, when the parties shall have signed and transmitted to each other, by telecopier or otherwise, copies of this Agreement.  The terms of this Agreement supersede the terms of any other verbal agreement existing prior to the date hereof.  In the event of any litigation arising hereunder, the prevailing party or parties shall be entitled to recover its or their reasonable attorneys’ fees and court costs from the other party or parties, including the costs of bringing such litigation and collecting upon any judgments.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, legal representatives, trustees, successors and assigns.

			

			

			

		

		
			[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		          IN WITNESS WHEREOF, the parties have signed and delivered this Forbearance and Settlement Agreement on the date first set forth above.

		

			
					XINHUA CHINA LTD

					
					HIGHGATE HOUSE FUNDS, LTD

				
	
					  

					
					

				
	
					By:       /s/ Xianping Wang                                

					
					By:       /s/ Mark A. Angelo                                           

				
	
					Name:  Xianping Wang

					
					Name:  Mark A. Angelo

				
	
					Title:  President and a Director

					
					Title:     Director

				
	
					

					
					  

				
	
					

					
					CORNELL CAPITAL PARTNERS, LP

				
	
					

					
					  

				
	
					

					
					By:      Yorkville Advisors, LLC

				
	
					

					
					Its:      General Partner

				
	
					

					  
					

				
	
					

					
					By:            /s/ Mark A. Angelo                                      

				
	
					

					
					Name:  Mark Angelo

				
	
					

					
					Title:     Portfolio Manager

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