Document:

Form of Series D Warrant

 Exhibit 4.1 
 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ SECURITIES ACT ” ), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH
SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED. 
 WARRANT TO PURCHASE

 SHARES OF COMMON STOCK 
 OF

 AVICENA GROUP, INC. 
 Expires
September 17, 2013 
  

			
	 No.: W-D-        
	  	Number of Shares:                     

 Date of Issuance: September 18, 2008 
 FOR VALUE RECEIVED, the undersigned, AVICENA GROUP, INC. , a Delaware corporation (together with its successors and assigns, the “
Issuer ” ), hereby certifies that
                                        
 or its registered assigns is entitled to subscribe for and purchase, during the Term (as hereinafter defined), up to
                                        
 (            ) shares (subject to adjustment as hereinafter provided) of the duly authorized, validly issued, fully paid and non-assessable Common Stock of the Issuer, at
an exercise price per share equal to the Warrant Price then in effect, subject, however, to the provisions and upon the terms and conditions hereinafter set forth. Capitalized terms used in this Warrant and not otherwise defined herein shall have
the respective meanings specified in Section 9 hereof. 
 1. Term. The term of this Warrant shall commence on
September 18, 2008 and shall expire at 6:00 p.m., Eastern Time, on September 17, 2013 (such period being the “Term” ). 
 2. Method of Exercise; Payment; Issuance of New Warrant; Transfer and Exchange. 
 (a) Time of Exercise. The purchase
rights represented by this Warrant may be exercised in whole or in part during the Term. 
 (b) Method of Exercise. The Holder hereof
may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the exercise form attached hereto duly executed) at the principal office of the Issuer, and by the payment to the Issuer of an amount of consideration therefore
equal to the Warrant Price in effect on the date of such exercise multiplied by the number of shares of Warrant Stock with respect to which this Warrant is then being exercised, payable at such Holder’s election (i) by certified or
official bank check or by wire transfer to an account designated by the Issuer, (ii) by “cashless exercise” in accordance with the provisions of subsection (c) of this Section 2 , but only when a registration
statement under the Securities Act providing for the resale of the Warrant Stock is not then in effect, or (iii) by a combination of the foregoing methods of payment selected by the Holder of this Warrant. 
 (c) Cashless Exercise. Notwithstanding any provision herein to the contrary, but subject to Section 2(b)(ii) hereof, and
commencing one (1) year following the Original Issue Date if the Per Share Market Value of one share of Common Stock is greater than the Warrant Price (at the date of calculation as set forth below), in lieu of 

  

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exercising this Warrant by payment of cash, the Holder may exercise this Warrant by a cashless exercise by surrender of this Warrant at the principal office
of the Issuer together with the properly endorsed Notice of Exercise, in which event the Issuer shall issue to the Holder a number of shares of Common Stock computed using the following formula: 
  

					
		  	X =	  	 Y- (A)(Y)
           B

			
	Where	  	X =	  	the number of shares of Common Stock to be issued to the Holder.
			
		  	Y =	  	the number of shares of Common Stock purchasable upon exercise of all of the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being
exercised.
			
		  	A =	  	the Warrant Price.
			
		  	B =	  	the Per Share Market Value of one share of Common Stock.

 (d) Issuance of Stock Certificates. In the event of any exercise of this Warrant in
accordance with and subject to the terms and conditions hereof, certificates for the shares of Warrant Stock so purchased shall be dated the date of such exercise and delivered to the Holder hereof within a reasonable time, not exceeding three
(3) Trading Days after such exercise (the “ Delivery Date ”) or, at the request of the Holder (provided that a registration statement under the Securities Act providing for the resale of the Warrant Stock is then in
effect or that the shares of Warrant Stock are otherwise exempt from registration), issued and delivered to the Depository Trust Company (“ DTC ”) account on the Holder’s behalf via the Deposit Withdrawal Agent
Commission System (“ DWAC ”) within a reasonable time, not exceeding three (3) Trading Days after such exercise, and the Holder hereof shall be deemed for all purposes to be the holder of the shares of Warrant Stock
so purchased as of the date of such exercise. Notwithstanding the foregoing to the contrary, the Issuer or its transfer agent shall only be obligated to issue and deliver the shares to the DTC on a holder’s behalf via DWAC if such exercise is
in connection with a sale or other exemption from registration by which the shares may be issued without a restrictive legend and the Issuer and its transfer agent are participating in DTC through the DWAC system. The Holder shall deliver this
original Warrant, or an indemnification reasonably acceptable to the Issuer undertaking with respect to such Warrant in the case of its loss, theft or destruction, at such time that this Warrant is fully exercised. With respect to partial exercises
of this Warrant, the Issuer shall keep written records for the Holder of the number of shares of Warrant Stock exercised as of each date of exercise. 
 (e) Transferability of Warrant. Subject to Section 2(f) hereof, this Warrant may be transferred by a Holder, in whole or in part, without the consent of the Issuer. If transferred pursuant to
this paragraph, this Warrant may be transferred on the books of the Issuer by the Holder hereof in person or by duly authorized attorney, upon surrender of this Warrant at the principal office of the Issuer, properly endorsed (by the Holder
executing an assignment in the form attached hereto) and upon payment of any necessary transfer tax or other governmental charge imposed upon such transfer. This Warrant is exchangeable at the principal office of the Issuer for Warrants to purchase
the same aggregate number of shares of Warrant Stock, each new Warrant to represent the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of such exchange. All Warrants issued on transfers or
exchanges shall be dated the Original Issue Date and shall be identical with this Warrant except as to the number of shares of Warrant Stock issuable pursuant thereto. 
 (f) Compliance with Securities Laws. 
 (i) The Holder of this Warrant, by acceptance
hereof, acknowledges that this Warrant and the shares of Warrant Stock to be issued upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder
will not offer, sell or otherwise dispose of this Warrant or any shares of Warrant Stock to be issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act and any
applicable state securities laws. 
  

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 (ii) Except as provided in paragraph (iii) below, this Warrant and all certificates
representing shares of Warrant Stock issued upon exercise hereof shall be stamped or imprinted with a legend in substantially the following form: 
 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ SECURITIES ACT ”), OR ANY STATE SECURITIES LAWS
AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT
REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED. 
 (iii) The Issuer agrees to reissue this Warrant or certificates representing any of the Warrant Stock, without the legend set forth above, if at such time, prior to making any transfer of any such securities, the
Holder shall give written notice to the Issuer describing the manner and terms of such transfer and demonstrating that the following conditions are satisfied. Such proposed transfer will not be effected until: (a) either (i) the Issuer has
received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that the registration of such securities under the Securities Act is not required in connection with such proposed transfer, (ii) a registration statement under
the Securities Act covering such proposed disposition has been filed by the Issuer with the Securities and Exchange Commission and has become and remains effective under the Securities Act, (iii) the Issuer has received other evidence
reasonably satisfactory to the Issuer that such registration and qualification under the Securities Act and state securities laws are not required, or (iv) the Holder provides the Issuer with reasonable assurances that such security can be sold
pursuant to Rule 144 under the Securities Act; and (b) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that registration or qualification under the securities or “blue
sky” laws of any state is not required in connection with such proposed disposition, or (ii) compliance with applicable state securities or “blue sky” laws has been effected or a valid exemption exists with respect thereto. The
Issuer will respond to any such notice from a holder within three (3) Trading Days. In the case of any proposed transfer under this Section 2(f), the Issuer will use reasonable efforts to comply with any such applicable state
securities or “blue sky” laws, but shall in no event be required, (x) to qualify to do business in any state where it is not then qualified, (y) to take any action that would subject it to tax or to the general service of process
in any state where it is not then subject, or (z) to comply with state securities or “blue sky” laws of any state for which registration by coordination is unavailable to the Issuer. The restrictions on transfer contained in this
Section 2(f) shall be in addition to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Warrant. Whenever a certificate representing the Warrant Stock is required to be
issued to the Holder without a legend, in lieu of delivering physical certificates representing the Warrant Stock, the Issuer shall cause its transfer agent to electronically transmit the Warrant Stock to the Holder by crediting the account of the
Holder or Holder’s Prime Broker with DTC through its DWAC system (to the extent not inconsistent with any provisions of this Warrant or the Purchase Agreements). 
 (g) Accredited Investor Status. In no event may the Holder exercise this Warrant in whole or in part unless the Holder is an “accredited investor” as defined in Regulation D under the Securities Act.

 3. Stock Fully Paid; Reservation and Listing of Shares; Covenants; Loss, Theft, Destruction. 
 (a) Stock Fully Paid. The Issuer represents, warrants, covenants and agrees that all shares of Warrant Stock which may be issued upon the exercise
of this Warrant or otherwise hereunder will, when issued in accordance with the terms of this Warrant, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by or through the Issuer. The
Issuer further covenants and agrees that it will use commercially reasonable efforts to hold a meeting of Avicena stockholders as practicable following the closing of the D offering and to obtain at such a meeting the authorization and approval of
Avicena’s stockholders to amend the Certificate of Incorporation to increase the number of shares of Common Stock authorized for issuance to have available for the purpose of issuance upon exercise of this Warrant a 

  

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number of authorized but unissued shares of Common Stock equal to at least one hundred percent (100%) of the number of shares of Common Stock issuable
upon exercise of this Warrant without regard to any limitations on exercise. 
 (b) Reservation. If any shares of Common Stock
required to be reserved for issuance upon exercise of this Warrant or as otherwise provided hereunder require registration or qualification with any Governmental Authority under any federal or state law before such shares may be so issued, the
Issuer will in good faith use its best efforts as expeditiously as possible at its expense to cause such shares to be duly qualified. If the Issuer shall list any shares of Common Stock on any securities exchange or market it will, at its expense,
list thereon, and maintain and increase when necessary such listing, of, all shares of Warrant Stock from time to time issued upon exercise of this Warrant or as otherwise provided hereunder (provided that such Warrant Stock has been registered
pursuant to a registration statement under the Securities Act then in effect), and, to the extent permissible under the applicable securities exchange rules, all unissued shares of Warrant Stock which are at any time issuable hereunder, so long as
any shares of Common Stock shall be so listed. The Issuer will also so list on each securities exchange or market, and will maintain such listing of, any other securities which the Holder of this Warrant shall be entitled to receive upon the
exercise of this Warrant if at the time any securities of the same class shall be listed on such securities exchange or market by the Issuer. 
 (c) Covenants. The Issuer shall not by any action including, without limitation, amending the Certificate of Incorporation or the by-laws of the Issuer, or through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the
taking of all such actions as may be necessary or appropriate to protect the rights of the Holder hereof against dilution (to the extent specifically provided herein) or impairment. Without limiting the generality of the foregoing, the Issuer will
(i) not permit the par value, if any, of its Common Stock to exceed the then effective Warrant Price, (ii) not amend or modify any provision of the Certificate of Incorporation or by-laws of the Issuer in any manner that would adversely
affect the rights of the Holders of the Warrants, (iii) take all such action as may be reasonably necessary in order that the Issuer may validly and legally issue fully paid and nonassessable shares of Common Stock, free and clear of any liens,
claims, encumbrances and restrictions (other than as provided herein) upon the exercise of this Warrant, and (iv) use its best efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction
thereof as may be reasonably necessary to enable the Issuer to perform its obligations under this Warrant. 
 (d) Loss, Theft, Destruction
of Warrants. Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security
satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and
representing the right to purchase the same number of shares of Common Stock. 
 4. Adjustment of Warrant Price. The Warrant Price
shall be subject to adjustment from time to time as set forth in this Section 4. The Issuer shall give the Holder notice of any event described below which requires an adjustment pursuant to this Section 4 in
accordance with the notice provisions set forth in Section 5. 
 (a) Recapitalization, Reorganization, Reclassification,
Consolidation, Merger or Sale. 
 (i) In case the Issuer after the Original Issue Date shall do any of the following
(each, a “ Triggering Event ”): (a) consolidate or merge with or into any other Person and the Issuer shall not be the continuing or surviving corporation of such consolidation or merger, or (b) permit any other
Person to consolidate with or merge into the Issuer and the Issuer shall be the continuing or surviving Person but, in connection with such consolidation or merger, any Capital Stock of the Issuer shall be changed into or exchanged for Securities of
any other Person or cash or any other property, or (c) transfer all or substantially all of its properties or assets to any other Person, or (d) effect a capital reorganization or reclassification of its Capital Stock, then, and in the
case of each such Triggering Event, proper provision shall be made to the Warrant Price and the number of shares of Warrant Stock that may be purchased upon exercise of this Warrant so that, upon the basis and the terms and in the manner provided in
this Warrant, the Holder of this 

  

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Warrant shall be entitled upon the exercise hereof at any time after the consummation of such Triggering Event, to the extent this Warrant is not exercised
prior to such Triggering Event, to receive at the Warrant Price in effect at the time immediately prior to the consummation of such Triggering Event, in lieu of the Common Stock issuable upon such exercise of this Warrant prior to such Triggering
Event, the Securities, cash and property to which such Holder would have been entitled upon the consummation of such Triggering Event if such Holder had exercised the rights represented by this Warrant immediately prior to such Triggering Event
(including the right of a shareholder to elect the type of consideration it will receive upon a Triggering Event), subject to adjustments (subsequent to such corporate action) as nearly equivalent as possible to the adjustments provided for
elsewhere in this Section 4; provided, however, the Holder at its option may elect to receive an amount in cash equal to the value of this Warrant calculated in accordance with the Black-Scholes
formula. Immediately upon the occurrence of a Triggering Event, the Issuer shall notify the Holder in writing of such Triggering Event and provide the calculations used in determining the number of shares of Warrant Stock issuable upon exercise of
the new warrant and the adjusted Warrant Price. Upon the Holder’s request, the continuing or surviving corporation as a result of such Triggering Event shall issue to the Holder a new warrant of like tenor evidencing the right to purchase the
adjusted number of shares of Warrant Stock and the adjusted Warrant Price pursuant to the terms and provisions of this Section 4(a)(i). Notwithstanding the foregoing to the contrary, this Section 4(a)(i) shall
only apply if the surviving entity pursuant to any such Triggering Event is a company that has a class of equity securities registered pursuant to the Securities Exchange Act of 1934, as amended, and its common stock is listed or quoted on a
national securities exchange, national automated quotation system or the OTC Bulletin Board. In the event that the surviving entity pursuant to any such Triggering Event is not a public company that is registered pursuant to the Securities Exchange
Act of 1934, as amended, or its common stock is not listed or quoted on a national securities exchange, national automated quotation system or the OTC Bulletin Board, then the Holder shall have the right to demand that the Issuer pay to the Holder
an amount in cash equal to the value of this Warrant calculated in accordance with the Black-Scholes formula. 
 (ii) In the
event that the Holder has elected not to exercise this Warrant prior to the consummation of a Triggering Event and has also elected not to receive an amount in cash equal to the value of this Warrant calculated in accordance with the Black-Scholes
formula pursuant to the provisions of Section 4(a)(i) above, so long as the surviving entity pursuant to any Triggering Event is a company that has a class of equity securities registered pursuant to the Securities Exchange Act of
1934, as amended, and its common stock is listed or quoted on a national securities exchange, national automated quotation system or the OTC Bulletin Board, the surviving entity and/or each Person (other than the Issuer) which may be required to
deliver any Securities, cash or property upon the exercise of this Warrant as provided herein shall assume, by written instrument delivered to, and reasonably satisfactory to, the Holder of this Warrant, (A) the obligations of the Issuer under
this Warrant (and if the Issuer shall survive the consummation of such Triggering Event, such assumption shall be in addition to, and shall not release the Issuer from, any continuing obligations of the Issuer under this Warrant) and (B) the
obligation to deliver to such Holder such Securities, cash or property as, in accordance with the foregoing provisions of this subsection (a), such Holder shall be entitled to receive, and the surviving entity and/or each such Person shall have
similarly delivered to such Holder an opinion of counsel for the surviving entity and/or each such Person, which counsel shall be reasonably satisfactory to such Holder, or in the alternative, a written acknowledgement executed by the President or
Chief Financial Officer of the Issuer, stating that this Warrant shall thereafter continue in full force and effect and the terms hereof (including, without limitation, all of the provisions of this subsection (a)) shall be applicable to the
Securities, cash or property which the surviving entity and/or each such Person may be required to deliver upon any exercise of this Warrant or the exercise of any rights pursuant hereto. 
 (b) Stock Dividends, Subdivisions and Combinations. If at any time the Issuer shall: 
 (i) make or issue or set a record date for the holders of the Common Stock for the purpose of entitling them to receive, a dividend
payable in, or other distribution of, shares of Common Stock, 
 (ii) subdivide its outstanding shares of Common Stock into a
larger number of shares of Common Stock, or 
  

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 (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 for which this Warrant is exercisable 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 for which this Warrant is exercisable immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (2) the Warrant Price then in effect shall be adjusted to equal (A) the Warrant Price then in effect multiplied by the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the adjustment divided by (B) the number of shares of Common Stock for which this Warrant is exercisable immediately after such adjustment. 
 (c) Certain Other Distributions. If at any time the Issuer shall make or issue or set a record date for the holders of the Common Stock for the purpose of entitling them to receive any dividend or other
distribution of: 
 (i) cash (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 Issuer), 
 (ii) any evidences of its
indebtedness, any shares of stock of any class or any other securities or property of any nature whatsoever (other than cash), 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 of any nature whatsoever (other than cash), 
 then (1) the number of shares of Common Stock for which this Warrant is exercisable shall be adjusted to equal the product of the number of shares of Common Stock
for which this Warrant is exercisable immediately prior to such adjustment multiplied by a fraction (A) the numerator of which shall be the Per Share Market Value of Common Stock at the date of taking such record and (B) the denominator of
which shall be such Per Share Market Value 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 and supported by an opinion from an investment
banking firm mutually agreed upon by the Issuer and the Holder) 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
Warrant Price then in effect shall be adjusted to equal (A) the Warrant Price then in effect multiplied by the number of shares of Common Stock for which this Warrant is exercisable immediately prior to the adjustment divided by (B) the
number of shares of Common Stock for which this Warrant is exercisable immediately after such adjustment. A reclassification of the Common Stock (other than a change in par value, or from par value to no par value or from no par value to par value)
into shares of Common Stock and shares of any other class of stock shall be deemed a distribution by the Issuer to the holders of its Common Stock of such shares of such other class of stock within the meaning of this Section 4(c)
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(b). 
 (d) Other Provisions applicable to
Adjustments under this Section. The following provisions shall be applicable to the making of adjustments of the number of shares of Common Stock for which this Warrant is exercisable and the Warrant Price then in effect provided for in this
Section 4: 
 (i) Computation of Consideration. In connection with any merger or consolidation in
which the Issuer is the surviving corporation (other than any consolidation or merger in which the previously outstanding shares of Common Stock of the Issuer shall be changed to or exchanged for the stock or other securities of another
corporation), the amount of consideration therefore shall be deemed to be the fair value, as determined reasonably and in good faith by the Board, of such portion of the assets and business of the nonsurviving corporation as the Board may determine
to be attributable to such shares of Common Stock. In the event of any consolidation or merger of the Issuer in which the Issuer is not the surviving corporation or in which the previously outstanding shares of Common Stock of the Issuer shall be
changed into or exchanged for the stock or other securities of another corporation, or in the event of any sale of all or substantially all of the assets of the Issuer for stock or other securities of any corporation, the Issuer shall be deemed to
have issued a number of shares of its Common Stock for stock or securities or other property 

  

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of the other corporation computed on the basis of the actual exchange ratio on which the transaction was predicated, and for a consideration equal to the
fair market value on the date of such transaction of all such stock or securities or other property of the other corporation. In the event any consideration received by the Issuer for any securities consists of property other than cash, the fair
market value thereof at the time of issuance or as otherwise applicable shall be as determined in good faith by the Board. In the event Common Stock is issued with other shares or securities or other assets of the Issuer for consideration which
covers both, the consideration computed as provided in this Section 4(d)(i) shall be allocated among such securities and assets as determined in good faith by the Board. 
 (ii) When Adjustments to Be Made. The adjustments required by this Section 4 shall be made whenever and as often
as any specified event requiring an adjustment shall occur, except that any adjustment of the number of shares of Common Stock for which this Warrant is exercisable 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(b)) 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 one percent (1%) of the shares of Common Stock for 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. 
 (iii) Fractional Interests. In computing adjustments under this
Section 4 , fractional interests in Common Stock shall be taken into account to the nearest one one-hundredth (1/100 th ) of
a share. 
 (iv) When Adjustment Not Required. If the Issuer shall take 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 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, 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. 
 (e) Form of Warrant after Adjustments. The form of this Warrant need not be changed because of any adjustments in the Warrant Price or the number
and kind of Securities purchasable upon the exercise of this Warrant. 
 (f) Escrow of Warrant Stock. If after any property becomes
distributable pursuant to this 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, and the Holder exercises this Warrant, any
shares of Common Stock issuable upon exercise by reason of such adjustment shall be deemed the last shares of Common Stock for which this Warrant is exercised (notwithstanding any other provision to the contrary herein) and such shares or other
property shall be held in escrow for the Holder by the Issuer to be issued to the Holder upon and to the extent that the event actually takes place, upon payment of the current Warrant Price. 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 cancelled by the Issuer and escrowed property returned. 
 5. Notice of Adjustments. Whenever the Warrant Price or Warrant Share Number shall be adjusted pursuant to Section 4 hereof
(for purposes of this Section 5 , each an “ adjustment ”), the Issuer shall cause its Chief Financial Officer to prepare and execute a certificate setting forth, in reasonable detail, the event requiring
the adjustment, the amount of the adjustment, the method by which such adjustment was calculated (including a description of the basis on which the Board made any determination hereunder), and the Warrant Price and Warrant Share Number after giving
effect to such adjustment, and shall cause copies of such certificate to be delivered to the Holder of this Warrant promptly after each adjustment. Any dispute between the Issuer and the Holder of this Warrant with respect to the matters set forth
in such certificate may at the option of the Holder of this Warrant be submitted to a national or regional accounting firm reasonably acceptable to the Issuer and the Holder, provided that the Issuer shall have ten (10) days after
receipt of notice from such Holder of its selection of such firm to object thereto, in which case such Holder shall select another such firm and the Issuer shall have 

  

 27 

 
no such right of objection. The firm selected by the Holder of this Warrant as provided in the preceding sentence shall be instructed to deliver a written
opinion as to such matters to the Issuer and such Holder within thirty (30) days after submission to it of such dispute. Such opinion shall be final and binding on the parties hereto. The costs and expenses of the initial accounting firm shall
be paid equally by the Issuer and the Holder and, in the case of an objection by the Issuer, the costs and expenses of the subsequent accounting firm shall be paid in full by the Issuer. 
 6. Fractional Shares. No fractional shares of Warrant Stock will be issued in connection with any exercise hereof, but in lieu of such fractional
shares, the Issuer shall make a cash payment therefore equal in amount to the product of the applicable fraction multiplied by the Per Share Market Value then in effect. 
 7. [Reserved] 
 8. Registration Rights. None 
 9. Definitions. For the purposes of this Warrant, the following terms have the following meanings: 
 “ Board ” shall mean the Board of Directors of the Issuer. 
 “ Capital Stock ” means and includes (i) any and all shares, interests, participations or other equivalents
of or interests in (however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership interests (whether general or limited) in any Person which is a partnership, (iii) all
membership interests or limited liability company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type. 
 “ Certificate of Incorporation ” means the Amended and Restated Certificate of Incorporation of the Issuer as in
effect on the Original Issue Date, and as hereafter from time to time amended, modified, supplemented or restated in accordance with the terms hereof and thereof and pursuant to applicable law. 
 “ Common Stock ” means the Common Stock, $0.001 par value per share, of the Issuer and any other Capital Stock
into which such stock may hereafter be changed. 
 “ Governmental Authority ” means any governmental,
regulatory or self-regulatory entity, department, body, official, authority, commission, board, agency or instrumentality, whether federal, state or local, and whether domestic or foreign. 
 “ Holders ” mean the Persons who shall from time to time own any Warrant. The term “ Holder
” means one of the Holders. 
 “ Independent Appraiser ” means a nationally recognized or
major regional investment banking firm or firm of independent certified public accountants of recognized standing (which may be the firm that regularly examines the financial statements of the Issuer) that is regularly engaged in the business of
appraising the Capital Stock or assets of corporations or other entities as going concerns, and which is not affiliated with either the Issuer or the Holder of any Warrant. 
 “ Issuer ” means Avicena Group, Inc., a Delaware corporation, and its successors. 
 “ Majority Holders ” means at any time the Holders of Warrants exercisable for a majority of the shares of Warrant
Stock issuable under the Warrants at the time outstanding. 
 “ Original Issue Date ” means
September 18, 2008. 
 “ OTC Bulletin Board ” means the over-the-counter electronic bulletin
board. 
 “ Person ” means an individual, corporation, limited liability company, partnership, joint
stock company, trust, unincorporated organization, joint venture, Governmental Authority or other entity of whatever nature. 
 “ Per Share Market Value ” means on any particular date (a) the last closing bid price per share of the Common Stock on such date on the OTC Bulletin Board or another registered national stock exchange on which
the Common Stock is then listed, or if there is no such price on such date, then the closing bid price on such exchange or quotation system on the date nearest preceding such date, or (b) if the Common Stock is not listed then on the OTC
Bulletin Board or any registered national stock exchange, the last 

  

 28 

 
closing bid price for a share of Common Stock in the over-the-counter market, as reported by the OTC Bulletin Board or in the National Quotation Bureau
Incorporated or similar organization or agency succeeding to its functions of reporting prices) at the close of business on such date, or (c) if the Common Stock is not then reported by the OTC Bulletin Board or the National Quotation Bureau
Incorporated (or similar organization or agency succeeding to its functions of reporting prices), then the average of the “Pink Sheet” quotes for the five (5) Trading Days preceding such date of determination, or (d) if the
Common Stock is not then publicly traded the fair market value of a share of Common Stock as determined by an Independent Appraiser selected in good faith by the Majority Holders; provided, however, that the Issuer, after
receipt of the determination by such Independent Appraiser, shall have the right to select an additional Independent Appraiser, in which case, the fair market value shall be equal to the average of the determinations by each such Independent
Appraiser; and provided, further that all determinations of the Per Share Market Value shall be appropriately adjusted for any stock dividends, stock splits or other similar transactions during such period. The
determination of fair market value by an Independent Appraiser shall be based upon the fair market value of the Issuer determined on a going concern basis as between a willing buyer and a willing seller and taking into account all relevant factors
determinative of value, and shall be final and binding on all parties. In determining the fair market value of any shares of Common Stock, no consideration shall be given to any restrictions on transfer of the Common Stock imposed by agreement or by
federal or state securities laws, or to the existence or absence of, or any limitations on, voting rights. 
 “Purchase Agreements” means the Series D Convertible Preferred Stock Subscription Agreement dated as of September 18, 2008, and any subsequent stock subscription agreements entered into among the Issuer and
Purchasers. 
 “Purchasers” means the purchasers of the Company’s Series D Convertible Preferred Stock
and the related Warrants. 
 “ Securities ” means any debt or equity securities of the Issuer, whether
now or hereafter authorized, any instrument convertible into or exchangeable for Securities or a Security, and any option, warrant or other right to purchase or acquire any Security. “Security” means one of the Securities. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Subsidiary” means any corporation at least 50% of whose outstanding Voting Stock shall at the time be owned directly or
indirectly by the Issuer or by one or more of its Subsidiaries, or by the Issuer and one or more of its Subsidiaries. 
 “Term” has the meaning specified in Section 1 hereof. 
 “ Trading
Day ” means (a) a day on which the Common Stock is traded on the OTC Bulletin Board, or (b) if the Common Stock is not traded on the OTC Bulletin Board, a day on which the Common Stock is quoted in the over-the-counter market
as reported by National Quotation Bureau Incorporated (or any similar organization or agency succeeding its functions of reporting prices); provided, however, that in the event that the Common Stock is not listed or
quoted as set forth in (a) or (b) hereof, then Trading Day shall mean 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 New York are authorized or required by
law or other government action to close. 
 “Voting Stock” means, as applied to the Capital Stock of
any corporation, Capital Stock of any class or classes (however designated) having ordinary voting power for the election of a majority of the members of the Board of Directors (or other governing body) of such corporation, other than Capital Stock
having such power only by reason of the happening of a contingency. 
 “ Warrants ” means the Warrants
issued and sold pursuant to the Purchase Agreements, including, without limitation, this Warrant and any other warrants of like tenor issued in substitution or exchange for any thereof pursuant to the provisions of Section 2(d) or
2(e) hereof or of any of such other Warrants. 
 “Warrant Price” initially means $0.04,
as such price may be adjusted from time to time as shall result from the adjustments specified in this Warrant, including Section 4 hereto. 
  

 29 

 “ Warrant Share Number ” means at any time the aggregate number
of shares of Warrant Stock which may at such time be purchased upon exercise of a Warrant, after giving effect to all prior adjustments and increases to such number made or required to be made under the terms hereof. 
 “Warrant Stock” means Common Stock issuable upon exercise of any Warrant or Warrants or otherwise issuable
pursuant to any Warrant or Warrants. 
 10. Other Notices. In case at any time: 
 (i) the Issuer shall make any distributions to the holders of Common Stock; or 
 (ii) the Issuer shall authorize the granting to all holders of its Common Stock of rights to subscribe for or purchase any shares of
Capital Stock of any class or other rights; or 
 (iii) there shall be any reclassification of the Capital Stock of the
Issuer; or 
 (iv) there shall be any capital reorganization by the Issuer; or 
 (v) there shall be any (i) consolidation or merger involving the Issuer or (ii) sale, transfer or other disposition of all or
substantially all of the Issuer’s property, assets or business (except a merger or other reorganization in which the Issuer shall be the surviving corporation and its shares of Capital Stock shall continue to be outstanding and unchanged and
except a consolidation, merger, sale, transfer or other disposition involving a wholly-owned Subsidiary); or 
 (vi) there
shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Issuer or any partial liquidation of the Issuer or distribution to holders of Common Stock; 
 then, in each of such cases, the Issuer shall give written notice to the Holder of the date on which (i) the books of the Issuer shall close or a record shall be taken for such dividend, distribution or
subscription rights or (ii) such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be, shall take place. Such notice also shall specify the date as of which the holders
of Common Stock of record shall participate in such dividend, distribution or subscription rights, or shall be entitled to exchange their certificates for Common Stock for securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be. Such notice shall be given at least twenty (20) days prior to the action in question and not less than ten (10) days prior to
the record date or the date on which the Issuer’s transfer books are closed in respect thereto. This Warrant entitles the Holder to receive copies of all financial and other information distributed or required to be distributed to the holders
of the Common Stock. 
 11. Amendment and Waiver. Any term, covenant, agreement or condition in this Warrant may be amended, or
compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively), by a written instrument or written instruments executed by the Issuer and the Majority Holders; provided,
however, that no such amendment or waiver shall reduce the Warrant Share Number, increase the Warrant Price, shorten the period during which this Warrant may be exercised or modify any provision of this Section 11
without the consent of the Holder of this Warrant. No consideration shall be offered or paid to any person to amend or consent to a waiver or modification of any provision of this Warrant unless the same consideration is also offered to all holders
of the Warrants. 
 12. Governing Law; Jurisdiction. This Warrant shall be governed by and construed in accordance with the internal
laws of the State of Delaware, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This Warrant shall not be interpreted or construed with any
presumption against the party causing this Warrant to be drafted. The Issuer and the Holder agree that venue for any dispute arising under this Warrant will lie exclusively in the state or federal courts located in New York, New York, and the
parties irrevocably waive any right to raise forum non conveniens or any other argument that California is not the proper venue. The Issuer and the Holder irrevocably consent to personal jurisdiction in the state and federal courts of the
State of New York. The Issuer and the Holder consent 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 Warrant and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 12 shall affect or limit any right to serve process in any other manner permitted by law. The Issuer and the Holder hereby agree
that the prevailing 

  

 30 

 
party in any suit, action or proceeding arising out of or relating to this Warrant or the Purchase Agreements, shall be entitled to reimbursement for
reasonable legal fees from the non-prevailing party. The parties hereby waive all rights to a trial by jury. 
 13. Notices. Any
notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) immediately upon hand delivery, telecopy or facsimile at the address or number designated below
(if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be
received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be: 
  

			
	If to the Issuer:	  	Avicena Group, Inc.
		  	228 Hamilton Avenue, Third Floor
		  	Palo Alto, CA 94301
		  	Attn: Chief Executive Officer
		  	Fax: (415) 397-2898
		
	If to any Holder:	  	At the address of such Holder set forth on Exhibit A to this Agreement, with copies to Holder’s counsel as set forth on Exhibit A or as specified in writing by such Holder

 Any party hereto may from time to time change its address for notices by giving written notice of
such changed address to the other party hereto. 
 14. Warrant Agent. The Issuer may, by written notice to each Holder of this
Warrant, appoint an agent having an office in New York, New York for the purpose of issuing shares of Warrant Stock on the exercise of this Warrant pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant
pursuant to subsection (d) of Section 2 hereof or replacing this Warrant pursuant to subsection (d) of Section 3 hereof, or any of the foregoing, and thereafter any such issuance, exchange or
replacement, as the case may be, shall be made at such office by such agent. 
 15. Remedies. The Issuer stipulates that the remedies
at law of the Holder of this Warrant in the event of any default or threatened default by the Issuer in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted
by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise. 
 16. Successors and Assigns. This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors and
assigns of the Issuer, the Holder hereof and (to the extent provided herein) the Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any such Holder or Holder of Warrant Stock. 
 17. Modification and Severability. If, in any action before any court or agency legally empowered to enforce any provision contained herein, any
provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make it enforceable by such court or agency. If any such provision is not enforceable as set forth in the preceding sentence, the
unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable provision had never been contained herein. 
 18. Headings. The headings of the Sections of this Warrant are for convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 31 

 IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day and year first above written.

  

			
	AVICENA GROUP, INC.
		
	By:	 	  

	Name:	 	Belinda Tsao-Nivaggioli
	Title:	 	Chief Executive Officer and Chairman

  

 32 

 EXERCISE FORM 
 WARRANT 
 AVICENA GROUP, INC. 
 The undersigned                     , pursuant to the provisions of the accompanying Warrant, hereby elects to
purchase              shares of Common Stock of Avicena Group, Inc. covered by the accompanying Warrant. 
  

									
	Dated:	 	___________________	 		 	Signature	 	  

					
		 		 		 	Address	 	  

					
		 		 		 		 	  

 Number of shares of Common Stock beneficially owned or deemed beneficially owned by the Holder on the date of
Exercise:                      
 The undersigned
is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended.     ̈  Yes     ̈  No 
 The undersigned intends that payment of the Warrant Price shall be made as (check one): 
 Cash Exercise             
 Cashless Exercise             
 If the Holder has elected a Cash Exercise, the Holder shall pay the sum of $             by certified
or official bank check (or via wire transfer) to the Issuer in accordance with the terms of the Warrant. 
 If the Holder has elected a Cashless Exercise, a
certificate shall be issued to the Holder for the number of shares equal to the whole number portion of the product of the calculation set forth below, which is
                . The Issuer shall pay a cash adjustment in respect of the fractional portion of the product of the calculation set forth below in an amount equal
to the product of the fractional portion of such product and the Per Share Market Value on the date of exercise, which product is                 . 
  

	
	 X = Y - (A)(Y)

	                   B

 Where: 
 The number of
shares of Common Stock to be issued to the Holder is (“X”). 
 The number of shares of Common Stock purchasable upon exercise of all of the Warrant
or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised is (“Y”). 
  

 33 

 The Warrant Price is (“A”). 
 The Per Share Market Value of one share of Common Stock is (“B”). 
 ASSIGNMENT 
 FOR VALUE RECEIVED,                      hereby sells, assigns
and transfers unto                      the accompanying Warrant and all rights evidenced thereby and does irrevocably constitute and appoint
                    , attorney, to transfer said Warrant on the books of the corporation named therein. 
  

									
	 Dated:
	 	_____________________	 		 	Signature	 	  

					
		 		 		 	Address	 	  

					
		 		 		 		 	  

 PARTIAL ASSIGNMENT 
 FOR VALUE RECEIVED,                      hereby sells, assigns and transfers unto
                     the right to purchase
                     shares of Warrant Stock evidenced by the accompanying Warrant together with all rights therein, and does irrevocably
constitute and appoint                     , attorney, to transfer that part of said Warrant on the books of the corporation named therein.

  

									
	Dated:	 	_____________________	 		 	Signature	 	  

					
		 		 		 	Address	 	  

					
		 		 		 		 	  

 FOR USE BY THE ISSUER ONLY: 
 This Warrant No. W-D-             canceled (or transferred or exchanged) this          day of
                    ,             , shares of Common Stock issued therefore
in the name of                     , Warrant No. W-D-             issued
for              shares of Common Stock in the name of
                    . 
  

 34 

 EXHIBIT A 
  

					
	 Name and Address of Holder
	  	 	  	 Name and Address of Holder’s Counsel

			
	  
	  		  	  

			
	  
	  		  	  

			
	  
	  		  	  

  

 35Subscription Agreement

 Exhibit 10.1 
 SUBSCRIPTION AGREEMENT 
 This Subscription Agreement (this “Agreement”) is made as of
September 18, 2008, by and between Avicena Group, Inc., a Delaware corporation (the “Company”), and the persons or entities executing this agreement on the Signature Pages attached hereto (the “Subscribers”). For purposes of
this Agreement, the Subscriber will mean each of the Subscribers party to this Agreement. 
 In consideration of the Company’s agreement
to sell the Securities (as defined below) to the Subscriber, upon the terms and conditions set forth herein, the Subscriber agrees and represents to the Company as follows: 
 1. The Subscription. The Subscriber hereby subscribes to purchase the number of “Units” set forth on its Signature Page, at a price of $5,000
per Unit. Each Unit shall consist of one share of the Company’s newly designated Series D Preferred Stock, having a par value of $0.001 and a stated value of $5,000 per share (the “Series D Stock”), and one (1) warrant (the
“Class D Warrant”) to purchase an additional 650,000 shares of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”). The Series D Stock and Class D Warrants subscribed for under this Agreement are
referred to collectively as the “Securities”. The total number of shares of Series D Stock issued pursuant to this Agreement shall be 200 (two hundred). 
 2. On the date hereof, each share of Series D Stock shall be convertible into 1,000,000 (one million) shares of the Common Stock, for a total of 200,000,000 (two hundred million) shares of Common Stock upon conversion
of all the Series D Stock issued pursuant to this Agreement, all as more specifically set forth in Section 5 of the Amended and Restated Certificate of Designation of the Relative Rights and Preferences (the “CoD”) of the Series D
Stock (subject to adjustment in certain circumstances as set forth in Clause 6.c below). The Series D Stock shall have the voting rights as set forth in the COD, which includes the right to a number of votes equal to the number of shares of Common
Stock into which the shares of Series D Stock then held by Subscriber could then be converted; for greater certainty the Series D Stock will be entitled to vote as if converted into Common Stock representing 200,000,000 votes from the Closing of
this Agreement. The Series D Stock’s entitlement to vote its 200,000,000 shares (as reflected on the pro forma capitalization table attached hereto as exhibit A) will not be impacted on any matter to be voted on if the Company’s total
authorized shares outstanding have not been increased at time the vote occurs sufficient such to have provisioned for conversion of the Series D Stock. The Company and its officers will use their best efforts as soon as reasonably practical
following issuance of the Series D stock, to seek stockholder approval for, among other things, amending the certificate of incorporation to increase the authorized capital stock to a number sufficient to allow for conversion of the Series D stock.

 3. The Company acknowledges receiving $700,000 for the Units, with an additional $300,000 to be paid by wire transfer of immediately
available funds upon the execution of this Agreement. 
 4. The Company will not sell more than 200 Units without the written consent of
Subscribers holding a majority of the Units issued pursuant to this Agreement (the “Majority Subscribers”). 
 5. Upon execution of
this Agreement, the Majority Subscribers shall designate one additional member to the Company’s Board of Directors which shall then total a maximum of 4 board members after the one addition. 
 6. Representations and Covenants of the Company. The Company represents, warrants and covenants to the Subscriber as follows: 
 a. Due Authorization. Upon their delivery to the Subscriber, the Securities will be duly authorized, validly issued, fully paid and
non-assessable. 
  

 36 

 b. No Breach; No Conflicts. The execution, delivery and performance of this Agreement,
the Class D Warrant and the Series D Certificate of Designations by the Company, the performance by the Company of its obligations thereunder and the consummation by the Company of the transactions contemplated herein and therein do not and will not
(i) violate any provision of the Company’s Certificate or Bylaws, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of
acceleration or redemption of any agreement, note, bond, instrument or obligation to which the Company is a party or by which it or its properties or assets are bound, including without limitation the Certificates of Designations for the
Company’s Series A and Series C Preferred Stock, except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a material adverse effect on the
Company or its assets, results of operations or financial condition. 
 c. Post-closing Covenant. Until such time as a New
Financing has occurred, the Company covenants that, if any of the conversion prices of its Series A Convertible Preferred Stock, Series B Convertible Preferred Stock and Series C Convertible Preferred Stock (“Prior Preferred”) are reduced
to an amount that is less than $.05 per share (subject to adjustments for stock splits, combinations and the like), the Company will reduce the conversion price of the Series D Stock by an amount such that the Subscribers’ ownership of the
Company’s outstanding capital stock relative to the holders of Prior Preferred as of the date hereof is not reduced, as reflected on the pro forma capitalization table attached hereto as Exhibit A. “New Financing” shall mean the
Company’s entering into an agreement with one or more third parties that contemplates the issuance of at least $10,000,000 of the Company’s equity securities. 
 7. Representations of the Subscriber. The Subscriber hereby represents and warrants to the Company as indicated below, understanding that the Company will rely on such representations in issuing the Securities to the
Subscriber: 
 a. Due Authorization. The Subscriber has full legal capacity to execute and deliver this Agreement and to carry
out fully and perform his, her or its obligations hereunder. If the Subscriber is an entity, (i) such Subscriber is duly organized, validly existing and in good standing in its jurisdiction of incorporation or organization; and (ii) such
Subscriber has taken all necessary corporate or limited liability company action (a) to duly approve the execution, delivery, and performance of this Agreement and (b) to consummate the transactions contemplated under this Agreement and
pursuant to such action has duly executed and delivered this Agreement. This Agreement has been duly executed by the Subscriber, and constitutes the valid and legally binding obligation of the Subscriber, enforceable against him, her or it in
accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws or equitable principals relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law. 
 b. No Conflicts. None of the execution and delivery of this Agreement, the consummation of any of the
transactions contemplated hereby, compliance with or fulfillment of the terms, conditions and provisions hereof or thereof will: 
 i.
conflict with, violate, result (with the giving of notice or passage of time or both) in a breach of the terms, conditions or provisions of, or constitute a default, an event of default or an event creating rights of acceleration, termination or
cancellation or a loss of rights under: 
 A. any agreement to which the Subscriber is a party or any of his, her or its assets or properties
is subject or by which the Subscriber is bound, 
  

 37 

 B. any court order to which the Subscriber is a party or any of his, her or its assets or properties is
subject or by which the Subscriber is bound, or 
 C. any requirements of law materially affecting the Subscriber or any of his, her or its
assets or properties; or 
 D. any term or provision of the organizational and governing documents of the Subscriber or any other instrument
or agreement to which it is subject; or 
 ii. require the approval, consent, authorization or act of any person or the making by the
Subscriber of any declaration, filing or registration with any other person. 
 c. Investment Intent. The Subscriber
understands that the Securities are “restricted securities” and have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities law. The Subscriber understands
and acknowledges that neither the Securities nor the Common Stock issuable upon conversion of the Series D Stock or upon exercise of the Class D Warrants have been registered, and that the Company has no present intention of registering the same,
under the Securities Act, or applicable state or foreign securities laws, and that the Securities are being issued in reliance on (i) an exemption from registration for private offerings contained in Section 4(2) of the Securities Act and
Regulation D promulgated under such Section, and (ii) exemptions from the registration requirements of certain state and foreign securities laws, which exemptions depend upon, among other things, the bona fide nature of the investment intent
and the accuracy of the Subscriber’s representations in this Agreement, upon which representations the Company is relying. The Subscriber represents that (i) he, she or it is able to bear the economic risk of an investment in the
Securities for an indefinite period, (ii) at the present time, he, she or it is able to afford a complete loss of such investment, (iii) he, she or it has adequate means of providing for his, her or its current needs and possible personal
contingencies and (iv) he, she or it has no need for liquidity in this investment. 
 d. Own Account; No Distribution.
The Subscriber is acquiring the Securities as principal for his, her or its own account and not as a nominee, agent or representative of any other person or entity, nor with a view to or for distributing or reselling such Securities or any part
thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities law. The Subscriber has no
direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of the Securities in violation of the Securities Act or any applicable state securities law. After the Securities are issued to the
Subscriber, no other person shall have any right to control or direct the voting or disposition of the Securities. 
 e.
Accredited Investor Status. At the time the Subscriber was offered the Securities, he, she or it was, and at the date hereof he, she or it is, and on each date on which he, she or it converts any Series D Stock or exercises any Class D Warrants he,
she or it will be, either: (i) an “accredited Investor” as defined in one or more of the subsections of Rule 501(a) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the
Securities Act. The Subscriber is not required to be registered as a broker-dealer under Section 15 of the U.S. Securities and Exchange Act of 1934, as amended. 
 f. Investment Experience and Sophistication; Subscriber’s Investigation; No Other Representations. The Subscriber has such knowledge,
sophistication and experience in business and financial matters (including private securities issued by public companies) so as to be capable of evaluating the merits and risks of the prospective investment in the Securities. The Subscriber has in
fact conducted such an evaluation. In making its evaluation, the Subscriber has not been furnished with or relied upon any representations, warranties or other information (whether oral or written) from the Company, or from any of its directors,
officers or stockholders, or from any other persons purporting to 

  

 38 

 
represent or act on behalf of the Company, other than (i) the representations contained in this Agreement and (ii) information regarding the
Company and its operations contained in the Company’s public securities filings or otherwise generally available to the public. The Subscriber is aware that an investment in the Securities is subject to a high degree of risk, and has reviewed
the “Risk Factors” set forth in the Company’s recent securities filings. 
 g. No General Solicitation. The
Subscriber is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at
any seminar or any other general solicitation or general advertisement. 
 h. No Short Selling. The Subscriber has not
directly or indirectly, nor has any person acting on behalf of or pursuant to any understanding with the Subscriber, executed any purchases or sales, including short sales, of the securities of the Company during the period commencing from the
time that the Subscriber first received from the Company or any other person representing the Company (i) a term sheet (written or oral) or (ii) a draft of this Agreement, in each case setting forth the material terms of the transactions
contemplated hereunder, until the date hereof. The Subscriber has maintained the confidentiality of all disclosures made to him in connection with the transactions contemplated hereby (including the existence and terms of this transaction).

 i. Residency. The Subscriber is a non-resident of the Unites States of America. The Subscriber agrees that, if he, she or
it changes its principal residence prior to the issuance of the Securities, he, she or it will promptly notify the Company. 
 8. Subscriber
Acknowledgements. The Subscriber is aware of, and acknowledges, the following: 
 a. Except as provided under applicable state
securities laws, this Subscription Agreement is and shall be binding and irrevocable, except that the Subscriber shall have no obligations hereunder if this Subscription Agreement is for any reason rejected. This Subscription Agreement may not be
cancelled, revoked or withdrawn by the Subscriber. This Subscription Agreement and any documents submitted herewith shall survive the death or disability of an individual Subscriber; and 
 b. At any time after the Subscriber executes this Agreement, the Subscriber may become a stockholder of the Company. The Company will
promptly hereafter issue the Securities purchased pursuant hereto in the name of the Subscriber as indicated on the Signature Page. 
 9.
Waiver of Participation Rights; April 2008 Letter. In connection with the issuance of the Securities and any securities issued in the New Financing, the Subscriber hereby agrees and acknowledges, on behalf of itself and its affiliates, that to the
extent it (or any of its affiliates) has any participation right, right of first refusal, right of first offer or similar rights (including without limitation any related notice rights) under previously existing agreements between the undersigned
(or its affiliates) and the Company, including without limitation Section 4(e) of that certain Series B Securities Purchase Agreement dated as of March 30, 2007, by and between the Company and the other parties thereto, that it waives any
and all such rights on behalf of itself and its affiliates. Each Subscriber agrees and acknowledges that that certain letter dated April 9, 2008 from the Company to 2141610 Ontario Limited regarding a $6,000,000 equity funding facility for the
Company, shall be deemed void and of no force or effect. 
 10. Miscellaneous Provisions. 
 a. Applicable Law. This Agreement shall be deemed to be a contract made under the laws of the State of Delaware, and for all purposes
shall be governed by and construed in accordance with the laws of said State, without regard to conflicts of law principles thereof. 
  

 39 

 b. Arbitration; Construction. Any dispute, controversy, or claim arising out of or
relating to this Agreement, the performance of the parties of its provisions, or the enforcement of the rights of the parties hereunder shall be determined by arbitration to be conducted in New York, New York, before a single arbitrator. The prior
sentence shall not, however, preclude the parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. The arbitration shall be administered by JAMS pursuant to its Streamlined Arbitration Rules and
Procedures. Each party hereto irrevocably consents to personal jurisdiction of the arbitrator chosen pursuant to such Rules and Procedures (the “Arbitrator”). The Arbitrator may, in the arbitration award he or she renders (the
“Award”), allocate all or part of the costs of the arbitration, including the fees of the arbitrator and the reasonable attorneys’ fees of the prevailing party. The parties further agree that any federal or state court sitting in New
York, New York, shall be authorized to enter a judgment upon the Award. If any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it
may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision
hereof. 
 c. Entire and Binding Agreement. This Agreement contains 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 this Agreement. This Agreement and the rights, powers and duties set
forth herein shall be binding upon the Subscriber, the Subscriber’s heirs, estate, legal representatives, successors and assigns and shall inure to the benefit of the Company, its successors and assigns. 
 d. Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument
signed, in the case of an amendment, by the Company and the Subscriber or, in the case of a waiver, by the party against whom enforcement of any such waived provision 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, nor shall any delay or omission of any party to exercise
any right hereunder in any manner impair the exercise of any such right. 
 e. Brokers and Finders. Other than the fee of
$100,000 which has been paid to Ethos, the Company and the Subscriber hereby represent to each other that neither of them, nor any person acting on behalf of either of them, has employed any broker, agent or finder or incurred any liability for any
brokerage fees, agents’ commissions or finders’ fees in connection with the transactions contemplated herein. 
 f.
Headings. 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. 
 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. 
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blank intentionally] 
  

 40 

 IN WITNESS WHEREOF, the undersigned Subscriber has caused this Subscription Agreement to be duly executed
by his, her or its authorized signatories as of the date first indicated above. 
 Name of the Subscriber: 
 Number of Units being Purchased: 
 Dollar Amount of Subscription ($5,000.00
per Unit): $ 
 Signature of Subscriber (or, if Subscriber is an entity, 
 Authorized Signatory of the Subscriber): 
 If Subscriber is an entity, type of 
 entity and jurisdiction of organization: 
 Name of Authorized Signatory: 
 Title of Authorized Signatory: 
 Email Address of the Subscriber: 

Fax Number of the Subscriber: 
 Address for Notice of the Subscriber:

 Address for Delivery of Securities for the Subscriber (if not same as address for notice): 
  

 41 

 Accepted this      day of
                    , 2008 
  

	
	Avicena Group, Inc.
	
	By:
	Print Name:
	Title:

  

 42

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