Document:

EX-4.1

Exhibit 4.1

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

Warrant No. W-2004-WT-__

COMMON STOCK PURCHASE WARRANT

To Purchase __ Shares of Common Stock of

GENETRONICS BIOMEDICAL CORPORATION

THIS IS TO CERTIFY THAT      , or registered assigns (the “Holder”), is entitled, during
the Exercise Period (as hereinafter defined), to purchase from Genetronics Biomedical Corporation,
a Delaware corporation (the “Company”), the Warrant Stock (as hereinafter defined and
subject to adjustment as provided herein), in whole or in part, at a purchase price of $5.50 per
share, all on and subject to the terms and conditions hereinafter set forth.

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

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

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

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

“Change of Control” means the (i) acquisition by an individual or legal entity or
group (as set forth in Section 13(d) of the Exchange Act) of more than one-half of the voting
rights or equity interests in the Company; or (ii) sale, conveyance, or other disposition of all or
substantially all of the assets, property or business of the Company or the merger into or
consolidation with any other corporation (other than a wholly owned subsidiary corporation) or
effectuation of any transaction or series of related transactions where holders of the Company’s
voting securities prior to such transaction or series of transactions fail to continue to hold at
least 50% of the voting power of the Company.

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

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

“Common Stock” means (except where the context otherwise indicates) the Common Stock,
$0.001 par value per share, of the Company as constituted on the Closing Date, and any capital
stock into which such Common Stock may thereafter be changed or converted, and shall also include
(i) capital stock of the Company of any other class (regardless of how denominated) issued to the
holders of shares of Common Stock upon any reclassification thereof which is also not preferred as
to dividends or assets on liquidation over any other class of stock of the Company and which is not
subject to redemption and (ii) shares of common stock of any successor or acquiring corporation
received by or distributed to the holders of Common Stock of the Company in the circumstances
contemplated by Section 4.4.

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

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

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

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

or

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

“Current Warrant Price” means, in respect of a share of Common Stock at any date
herein specified, the price at which a share of Common Stock may be purchased pursuant to this
Warrant on such date. Until the Current Warrant Price is adjusted pursuant to the terms herein, the
initial Current Warrant Price shall be $5.50 per share of Common Stock.

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

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

“Expiration Date” means January 10, 2007.

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

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

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

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

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

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

“Securities Purchase Agreement” means that certain Securities Purchase Agreement dated
as of January 10, 2005 among the Company and the other parties named therein, pursuant to which
this Warrant was originally issued.

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

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

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

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

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

2. Exercise of Warrant.

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

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

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

2.2. Mandatory Exercise. The Company may request that the Holder exercise this
Warrant in whole but not in part (the “Mandatory Exercise”) within twenty (20) Business
Days after the date of the Mandatory Exercise Notice (as defined below) by delivering a written
notice to the holder at such address as such holder shall have provided to the Company in writing
pursuant to Section 14.2 hereof (the “Mandatory Exercise Notice”); provided that (i) the
Daily Market Price for five (5) of the previous fifteen (15) trading days is equal to or greater
than $12.00, (ii) either all of the Warrant Stock underlying this Warrant (A) are then registered
under an effective registration statement or (B) may be sold pursuant to Rule 144 during a
three-month period without registration under the Securities Act, (iii) sufficient shares of Common
Stock of the Company are authorized and reserved for issuance upon the full exercise of this
Warrant, (iv) all of the Warrant Stock issuable upon exercise of this Warrant are then listed on
every stock exchange, market or bulletin board on which any Common Stock of the Company is then
listed and (v) the Company is not in default of any material provision of any Related Document (as
defined in the Purchase Agreement). The Mandatory Exercise Notice shall set forth the Daily Market
Price for each of the previous fifteen (15) trading days immediately preceding the date of the
Mandatory Exercise Notice and shall state that this Warrant be exercised in conformity with this
Section 2.2 within twenty (20) Business Days. Within ten (10) Business Day days of receipt of a
Mandatory Exercise Notice, the Holder shall deliver a written notice to the Company (the
“Participation Notice”), stating whether or not the Holder agrees to participate in such
Mandatory Exercise. If the Holder states in its Participation Notice that it elects not to
participate in the Mandatory Exercise, then (i) the Holder shall forfeit such Holder’s rights,
title and interest under this Warrant, (ii) this Warrant shall be deemed terminated and (iii) the
Holder shall deliver to the Company within three (3) Business Days of the date of such Holder’s
Participation Notice this Warrant marked “CANCELLED.” If the Holder states in its Participation
Notice that it elects to participate in the Mandatory Exercise or if the Holder fails to deliver a
Participation Notice within the time period specified in this Section 2.2, then this Warrant shall
be deemed to be exercised without any further action on the part of the Holder hereof pursuant to
this Section 2.2 for all of the Warrant Stock that can be obtained pursuant to such exercise on the
twentieth (20th) Business Day after the Mandatory Exercise Notice (the “Automatic Mandatory
Exercise Date”), unless prior to noon California time on the Automatic Mandatory Exercise Date,
the Holder shall have exercised this Warrant in whole, but not in part, in the manner set forth in
Section 2.1 hereof.

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

3. Transfer, Division and Combination.

3.1. Transfer. The Warrants and the Warrant Stock shall be freely transferable,
subject to compliance with all applicable laws, including, but not limited to the Securities Act.
If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant or
the resale of the Warrant Stock, this Warrant or the Warrant Stock, as applicable, shall not be
registered under the Securities Act, the Company may require, as a condition of allowing such
transfer (i) that the Holder or transferee of this Warrant or the Warrant Stock as the case may be,
furnish to the Company a written opinion of counsel that is reasonably acceptable to the Company to
the effect that such transfer may be made without registration under the Securities Act, (ii) that
the Holder or transferee execute and deliver to the Company an investment letter in form and
substance acceptable to the Company and substantially in the form attached as Exhibit C
hereto and (iii) that the transferee be an “accredited investor” as defined in Rule 501(a)
promulgated under the Securities Act. Transfer of this Warrant and all rights hereunder, in whole
or in part, in accordance with the foregoing provisions, shall be registered on the books of the
Company to be maintained for such purpose, upon surrender of this Warrant at the principal office
of the Company referred to in Section 2.1 or the office or agency designated by the Company
pursuant to Section 12, together with a written assignment of this Warrant substantially in the
form of Exhibit B hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender
and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in
the name of the assignee or assignees and in the denomination specified in such instrument of
assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant
not so assigned, and this Warrant shall promptly be cancelled. Following a transfer that complies
with the requirements of this Section 3.1, the Warrant may be exercised by a new Holder for the
purchase of shares of Common Stock regardless of whether the Company issued or registered a new
Warrant on the books of the Company.

3.2. Restrictive Legends. Each certificate for Warrant Stock initially issued upon the
exercise of this Warrant, and each certificate for Warrant Stock issued to any subsequent
transferee of any such certificate, unless, in each case, such Warrant Stock is eligible for resale
without registration pursuant to Rule 144(k) under the Exchange Act, shall be stamped or otherwise
imprinted with legends in substantially the following form:

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

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

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

4.1. Stock Dividends, Subdivisions and Combinations. If at any time while this Warrant
is outstanding the Company shall:

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

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

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

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

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

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

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

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

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

(i) cash,

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

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

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

(2) the Current Warrant Price in effect immediately prior to the record date fixed for
determination of stockholders entitled to receive such distribution shall be adjusted to
equal (x) the Current Warrant Price multiplied by the number of shares of Common Stock
acquirable upon exercise of this Warrant immediately prior to the adjustment, divided by (y)
the number of shares of Common Stock acquirable upon exercise of this Warrant immediately
after such adjustment. A reclassification of the Common Stock (other than a change in par
value, or from par value to no par value or from no par value to par value) into shares of
Common Stock and shares of any other class of stock shall be deemed a distribution by the
Company to the holders of its Common Stock of such shares of such other class of stock
within the meaning of this Section 4.2 and, if the outstanding shares of Common Stock shall
be changed into a larger or smaller number of shares of Common Stock as a part of such
reclassification, such change shall be deemed a subdivision or combination, as the case may
be, of the outstanding shares of Common Stock within the meaning of Section 4.1.

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

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

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

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

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

4.4. Reorganization, Reclassification, Merger, Consolidation or Disposition of Assets.
If there shall occur a Change of Control, then the Holder of this Warrant shall be entitled, at
such Holder’s option, either:

(a) upon request of Holder delivered to the Company within 10 days of receipt of notice of
such Change of Control pursuant to Section 5.2, to have the Company (or any such successor or
surviving entity) purchase this Warrant from the Holder for an aggregate purchase price, payable in
cash on the effective date of consummation of such Change of Control, equal to the product of (i)
the difference between the Current Market Price and the Current Warrant Price, multiplied by (ii)
the number of shares of Common Stock issuable upon exercise of this Warrant immediately prior to
the consummation of such Change of Control; or

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

(c) In case of any such Change of Control described above, to the extent this Warrant has not
been fully purchased by the Company pursuant to Section 4.4(a) above, the successor or acquiring
corporation (if other than the Company) shall expressly assume the due and punctual observance and
performance of each and every covenant and condition of contained in this Warrant to be performed
and observed by the Company and all the obligations and liabilities hereunder, subject to such
modifications as may be deemed appropriate (as determined by resolution of the Board of Directors
of the Company) in order to provide for adjustments of shares of the Common Stock into which this
Warrant is exercisable which shall be as nearly equivalent as practicable to the adjustments
provided for in Section 4. For purposes of Section 4, common stock of the successor or acquiring
corporation shall include stock of such corporation of any class which is not preferred as to
dividends or assets on liquidation over any other class of stock of such corporation and which is
not subject to redemption and shall also include any evidences of indebtedness, shares of stock or
other securities which are convertible into or exchangeable for any such stock, either immediately
or upon the arrival of a specified date or the happening of a specified event and any warrants or
other rights to subscribe for or purchase any such stock. The foregoing provisions of this Section
4 shall similarly apply to successive Change of Control transactions.

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

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

4.7. Stock Transfer Taxes. The issue of stock certificates upon exercise of this
Warrant shall be made without charge to the holder for any tax in respect of such issue. The
Company shall not, however, be required to pay any tax which may be payable in respect of any
transfer involved in the issue and delivery of shares in any name other than that of the holder of
this Warrant, and the Company shall not be required to issue or deliver any such stock certificate
unless and until the person or persons requesting the issue thereof shall have paid to the Company
the amount of such tax or shall have established to the satisfaction of the Company that such tax
has been paid.

5. Notices to Warrant Holders.

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

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

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

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

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

then, in any one or more of such cases, the Company shall give to the Holder (i) at least 20 days’
prior written notice of the date on which a record date shall be selected for such dividend,
distribution or right or for determining rights to vote in respect of any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or
winding up, and (ii) in the case of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding up, at least 20
days’ prior written notice of the date when the same shall take place. Such notice in accordance
with the foregoing clause also shall specify (i) the date on which any such record is to be taken
for the purpose of such dividend, distribution or right, the date on which the holders of Common
Stock shall be entitled to any such dividend, distribution or right, and the amount and character
thereof, and (ii) the date on which any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding up is to take place
and the time, if any such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other property deliverable upon
such reorganization, reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up. Each such written notice shall be sufficiently given if
addressed to the Holder at the last address of the Holder appearing on the books of the Company and
delivered in accordance with Section 14.2.

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

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

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

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

9. Registration Rights. The resale of the Warrant Stock shall be registered in
accordance with the terms and conditions contained in that certain Investor Rights Agreement dated
of even date hereof, among the Holder, the Company and the other parties named therein (the
“Registration Rights Agreement”). The Holder acknowledges that pursuant to the Investor
Rights Agreement, the Company has the right to request that the Holder furnish information
regarding such Holder and the distribution of the Warrant Stock as is required by law or the
Commission to be disclosed in the Registration Statement (as such term is defined in the Investor
Rights Agreement), and the Company may exclude from such registration the shares of Warrant Stock
acquirable hereunder if Holder fails to furnish such information within a reasonable time prior to
the filing of each Registration Statement, supplemented prospectus included therein and/or amended
Registration Statement.

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

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

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

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

14. Miscellaneous.

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

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

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

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

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

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

14.7. Governing Law. This Warrant and the transactions contemplated hereby shall be
deemed to be consummated in the State of California and shall be governed by and interpreted in
accordance with the local laws of the State of California without regard to the provisions thereof
relating to conflicts of laws. The Company hereby irrevocably consents to the exclusive
jurisdiction of the State and Federal courts located in Los Angeles, California in connection with
any action or proceeding arising out of or relating to this Warrant. In any such litigation the
Company agrees that the service thereof may be made by certified or registered mail directed to the
Company pursuant to Section 14.2.

[Signature Page Follows]

1

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

Dated: January 10, 2005

GENETRONICS BIOMEDICAL CORPORATION

	 	 	 	 	 
	By:
	 	 	—	 
	 
	 	 	 	 
	Name:
	 	Avtar Dhillon

	Title:
	 	President & Chief Executive Officer

	Attest:
	 	 	 	 
	By:
	 	 	—	 
	 
	 	 	 	 

Name: Douglas Murdock

Title: Secretary

2

EXHIBIT A

SUBSCRIPTION FORM

[To be executed only upon exercise of Warrant]

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

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

	 
	 

	(Name)

	 

	(Address)

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

     

(Name of Registered Owner)

     

(Signature of Registered Owner)

     

(Street Address)

     

(State) (Zip Code)

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

3

EXHIBIT B

ASSIGNMENT FORM

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

     

     

     

(Name and Address of Assignee)

     

(Number of Shares of Common Stock)

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

Dated:     

     

(Print Name and Title)

     

(Signature)

     

(Witness)

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

4

EXHIBIT C

FORM OF INVESTMENT REPRESENTATION LETTER

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

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

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

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

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

5

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

[Name]

By:     

Name:

Title:

6

SCHEDULE OF WARRANT HOLDERS

	 	 	 	 	 
	Name of Holder	 	Warrants
	Verdas Invest Ltd.	 	247,500
	BayStar Capital II, L.P.	 	244,444
	SRG Capital, LLC
	 	 	16,296	 
	 
	 	 	 	 
	TOTAL
	 	 	508,240	 
	 
	 	 	 	 

7EX-4.2

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this “Agreement”) is made and entered into as of January
10, 2005 among Genetronics Biomedical Corporation, a Delaware corporation (the “Company”), and each
of the purchasers executing this Agreement and listed on Schedule 1 attached hereto
(collectively, the “Purchasers”).

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

The Company and the Purchasers hereby agree as follows:

1. Definitions.

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

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

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

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

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

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

"Closing Date” means the Closing Date as defined in the Purchase Agreement.

“Commission” means the Securities and Exchange Commission.

“Common Stock” means the Company’s Common Stock, par value $0.001 per share.

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

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

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

“Filing Date” means the 120th day following the date of this Agreement.

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

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

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

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

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

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

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

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

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

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

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

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

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

“Special Counsel” means one special counsel to the Holders selected by a majority in
interest of the Holders to act as the representative of the Holders with notice of such selection
given to the Company.

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

2. Registration. Not later than the Filing Date, the Company shall prepare and file
with the Commission a “shelf” Registration Statement covering all Registrable Securities for a
secondary or resale offering to be made on a continuous basis pursuant to Rule 415. The
Registration Statement shall be on Form S-3 (or if such form is not available to the Company on
another form appropriate for such registration in accordance herewith). The Company shall use its
best efforts to keep such Registration Statement continuously effective under the Securities Act
until such date as is the earlier of (x) the date when all Registrable Securities covered by such
Registration Statement have been sold or (y) the date on which the Registrable Securities may be
sold without any restriction pursuant to Rule 144(k) as determined by the counsel to the Company
pursuant to a written opinion letter, addressed to the Company’s transfer agent to such effect (the
“Effectiveness Period”). Upon the initial filing thereof, the Registration Statement shall cover at
least 100% of the Common Shares and 100% of the shares of Common Stock issuable upon the exercise
of the Warrants. Such Registration Statement also shall cover, to the extent allowable under the
Securities Act and the Rules promulgated thereunder (including Securities Act Rule 416), such
indeterminate number of additional shares of Common Stock resulting from stock splits, stock
dividends or similar transactions with respect to the Registrable Securities.

3. Registration Procedures.

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

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

(b) (i) Prepare and file with the Commission such amendments, including post-effective
amendments, to the Registration Statement as may be necessary to keep the Registration Statement
continuously effective as to the applicable Registrable Securities for the Effectiveness Period and
to the extent any Registrable Securities are not included in such Registration Statement for
reasons other than the failure of the Holder to comply with Section 3(m) hereof, shall prepare and
file with the Commission such additional Registration Statements in order to register for resale
under the Securities Act all Registrable Securities; (ii) cause the related Prospectus to be
amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to
be filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the
Securities Act; (iii) respond as promptly as possible, and in no event later than 10 business days,
to any comments received from the Commission with respect to the Registration Statement or any
amendment thereto and as promptly as possible provide the Holders true and complete copies of all
correspondence from and to the Commission relating to the Registration Statement; and (iv) comply
in all material respects with the provisions of the Securities Act and the Exchange Act with
respect to the disposition of all Registrable Securities covered by the Registration Statement
during the Effectiveness Period in accordance with the intended methods of disposition by the
Holders thereof set forth in the Registration Statement as so amended or in such Prospectus as so
supplemented. In addition, the Company shall promptly prepare and file such amendments, including
post-effective amendments, to the Registration Statement and the related prospectus and take all
other actions as may be necessary to register the sale of Registrable Securities by any Holder to
whom the rights under this Agreement have been assigned pursuant to Section 7(j).

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

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

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

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

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

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

(i) Cooperate with the Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold pursuant to a Registration Statement,
which certificates shall be free, to the extent permitted by applicable law and the Purchase
Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such
denominations and registered in such names as any Holder may request at least two (2) Business Days
prior to any sale of Registrable Securities.

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

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

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

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

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

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

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

4. Registration Expenses.

All fees and expenses incident to the performance of or compliance with this Agreement by the
Company shall be borne by the Company whether or not the Registration Statement is filed or becomes
effective and whether or not any Registrable Securities are sold pursuant to the Registration
Statement. The fees and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation, fees and expenses
(A) with respect to filings required to be made with the American Stock Exchange and each other
securities exchange, quotation system, market or over-the-counter bulletin board on which
Registrable Securities are required hereunder to be listed, (B) with respect to filings required to
be made with the Commission, and (C) in compliance with state or provincial securities or Blue Sky
laws, (ii) printing expenses (including, without limitation, expenses of printing certificates for
Registrable Securities and of printing or photocopying prospectuses), (iii) messenger, telephone
and delivery expenses, (iv) Securities Act liability insurance, if the Company so desires such
insurance, and (v) fees and expenses of all other Persons retained by the Company in connection
with the consummation of the transactions contemplated by this Agreement, including, without
limitation, the Company’s independent public accountants (including, in the case of an underwritten
offering, the expenses of any comfort letters or costs associated with the delivery by independent
public accountants of a comfort letter or comfort letters) and legal counsel. In addition, the
Company shall be responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing legal or accounting duties), the
expense of any annual audit, the fees and expenses incurred in connection with the listing of the
Registrable Securities on any securities exchange as required hereunder.

5. Indemnification.

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

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

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

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in
writing to pay such fees and expenses; or (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such
Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding
(including any impleaded parties) include both such Indemnified Party and the Indemnifying Party,
and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely
to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party
(in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects
to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall
not have the right to assume the defense thereof and such counsel shall be at the reasonable
expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement
of any such Proceeding effected without its written consent, which consent shall not be
unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, effect any settlement of any pending Proceeding in respect of which any
Indemnified Party is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of such Proceeding and
does not impose any monetary or other obligation or restriction on the Indemnified Party.

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

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

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

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

6. Rule 144.

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

7. Miscellaneous.

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

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

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

(d) Specific Enforcement, Consent to Jurisdiction.

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

(ii) Each of the Company and the Holders (i) hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts located in Los Angeles, California
for the purposes of any suit, action or proceeding arising out of or relating to this
Agreement and (ii) hereby waives, and agrees not to assert in any such suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of such court,
that the suit, action or proceeding is brought in an inconvenient forum or that the venue
of the suit, action or proceeding is improper. Each of the Company and the Holders consents
to process being served in any such suit, action or proceeding by mailing a copy thereof to
such party at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof.
Nothing in this Section 7(d) shall affect or limit any right to serve process in any other
manner permitted by law.

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

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

Genetronics Biomedical Corporation

11199 Sorrento Valley Road

San Diego, CA 92121-1334

Attention: Mr. Peter Kies, Chief Financial Officer

Facsimile No.: 858-597-0451

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

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

(h) Assignment of Registration Rights. The rights of each Holder hereunder, including
the right to have the Company register for resale Registrable Securities in accordance with the
terms of this Agreement, shall be automatically assignable by each Holder to any transferee of such
Holder of all or a portion of the Common Stock, the Warrants or the Registrable Securities if: (i)
the Holder agrees in writing with the transferee or assignee to assign such rights, and a copy of
such agreement is furnished to the Company within a reasonable time after such assignment, (ii) the
Company is, within a reasonable time after such transfer or assignment, furnished with written
notice of (a) the name and address of such transferee or assignee, and (b) the securities with
respect to which such registration rights are being transferred or assigned, (iii) following such
transfer or assignment the further disposition of such securities by the transferee or assignees is
restricted under the Securities Act and applicable state securities laws, (iv) at or before the
time the Company receives the written notice contemplated by clause (ii) of this Section 7(j), the
transferee or assignee agrees in writing with the Company to be bound by all of the provisions of
this Agreement, and (v) such transfer shall have been made in accordance with the applicable
requirements of the Purchase Agreement and applicable securities legislation. The rights to
assignment shall apply to the Holders (and to subsequent) successors and assigns.

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

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

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

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

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

(m) Headings; Interpretation. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect any of the
provisions hereof. Any form of the word “include” as used in this Agreement shall be deemed to be
followed by the phrase “without limitation”.

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

[signature page follows]

1

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

COMPANY:

GENETRONICS BIOMEDICAL CORPORATION

	 	 	 	 	 
	By:
	 	 	____________	 
	 
	 	 	 	 
	Name:
	 	Avtar Dhillon

	Title:
	 	President & Chief Executive Officer

PURCHASER:

Print Exact Name:      

By:      

Name:

Title:

[Omnibus Genetronics Biomedical Corporation Investor Rights Agreement Signature Page]

2

SCHEDULE 1

PURCHASERS

	 	 	 	 	 	 	 	 	 
	 	 	Shares of Common Stock	 	 
	Name of Purchaser	 	Purchased	 	Warrants
	Verdas Invest Ltd.	 	750,000	 	247,500
	BayStar Capital II, L.P.	 	740,741	 	244,444
	SRG Capital, LLC
	 	 	49,382	 	 	 	16,296	 
	 
	 	 	 	 	 	 	 	 
	TOTAL
	 	 	1,540,123	 	 	 	508,240	 
	 
	 	 	 	 	 	 	 	 

3

EXHIBIT A

PLAN OF DISTRIBUTION

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

	 	 	 
	-

-

-

-

-

-

-

	 	a block trade in which the broker-dealer so engaged will attempt to sell the shares as agent but may position and

resell a portion of the block as principal to facilitate the transaction (including crosses in which the same broker

acts as agent for both sides of the transaction);

purchases by a broker-dealer as principal and resale by such broker-dealer, including resales for its account,

pursuant to this prospectus;

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

through options, swaps or derivatives;

in privately negotiated transactions;

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

put or call option transactions relating to the shares.

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

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

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

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

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

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

	 	 	 
	-

-

-

-

-

-

	 	the name of each such selling security holder and of the

participating broker-dealer(s);

the number of shares involved;

the initial price at which the shares were sold;

the commissions paid or discounts or concessions allowed to the

broker-dealer(s), where applicable;

that such broker-dealer(s) did not conduct any investigation to

verify the information set out or incorporated by reference in

this prospectus; and

other facts material to the transactions.

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

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

4

EXHIBIT B

FORM OF NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT

[Name and Address of Transfer Agent]

Re: Genetronics Biomedical Corporation

Dear [     ]:

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

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

Very truly yours,

By:     

cc: [LIST NAMES OF HOLDERS]

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]