Exhibit 10.4

ESCROW AGREEMENT

          THIS ESCROW AGREEMENT (“Agreement”) is made and entered into as of the
18th day of September 2007, by and among JPMorgan Chase Bank, N.A. (the “Escrow
Agent”), Delcath Systems, Inc., a Delaware corporation (the “Company”),
Canaccord Adams Inc. (“Canaccord”) and ThinkEquity Partners LLC (“ThinkEquity”
and together with Canaccord, the “Placement Agents”). Canaccord is acting as the
lead placement agent (the “Lead Placement Agent”).

Background

          WHEREAS, the Company proposes to sell an aggregate of up to 3,833,108
shares of its common stock, par value $0.01 per share (“Common Stock”), and
warrants to purchase up to 1,916,554 shares of the Company’s Common Stock
(collectively, the “Securities”), for an aggregate purchase price of up to
$14,182,499.60, all as described in the subscription agreements (collectively,
the “Subscription Agreements”) dated the date hereof between the Company and
each purchaser named therein (each a “Purchaser,” and collectively, the
“Purchasers”);

          WHEREAS, the Securities are being offered by the Company to purchasers
identified by the Placement Agents, pursuant to the terms of the Subscription
Agreements and the Placement Agency Agreement (the “Placement Agency Agreement”)
dated September 18, 2007 between the Company and the Placement Agents;

          WHEREAS, unless the transactions contemplated by the Subscription
Agreements and the Placement Agency Agreement have been abandoned pursuant to
the terms thereof, or unless otherwise agreed to by the Company and the
Placement Agents, the closing of the purchase and sale of the Securities shall
take place on September 21, 2007 (the “Closing Date”);

          WHEREAS, with respect to certain subscription payments received from
the Purchasers, the Company and the Placement Agents propose to establish an
escrow account with the Escrow Agent in the name of the Company at 4 New York
Plaza, 21st Floor, New York, New York 10004; and

          WHEREAS, the Escrow Agent is willing to receive and disburse the
proceeds from the offering of the Securities in accordance herewith. The Escrow
Agent’s duties are limited to this Agreement and shall only act in accordance
with the terms and conditions contained herein.

Terms

          NOW, THEREFORE, in consideration of the mutual agreements contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

          1. Deposit of Escrowed Funds. Each Purchaser for the Securities
identified on Exhibit A attached hereto shall wire or deposit with the Escrow
Agent immediately available funds of such Purchaser delivered in payment for the
Securities such Purchaser agrees to purchase (the “Escrowed Funds”). Upon
receipt of funds from each Purchaser, the Escrow Agent shall credit such funds
to a non-interest bearing account held by the Escrow Agent. The

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wire instructions to which each Purchaser shall wire or deposit such funds are
set forth in the notice provision for the Escrow Agent in Section 9 to this
Agreement.

          2. Acceptance. Upon receipt of the Escrowed Funds, the Escrow Agent
shall acknowledge such receipt in writing (which may be via electronic mail) to
the Company and the Placement Agents and shall hold and disburse the same
pursuant to the terms and conditions of this Agreement. The Escrow Agent shall
have no duty to verify whether the amounts and property delivered comport with
the requirements of any other agreement.

          3. List of Purchasers. Exhibit A hereto contains the name of, the
address of, the number of Securities subscribed for by, and the subscription
amount to be delivered to the Escrow Agent on behalf of, each Purchaser whose
funds are being deposited. The Escrow Agent shall notify the Placement Agents
and the Company of any discrepancy between the subscription amounts set forth on
any list delivered pursuant to this Section 3 and the subscription amounts
received by the Escrow Agent. The Escrow Agent is authorized to augment such
list to reflect the actual subscription amounts received and the release of any
subscription amounts pursuant to Section 4.

          4. Withdrawal of Subscription Amounts.

                    (a) If the Escrow Agent shall receive a notice,
substantially in the form of Exhibit B hereto (an “Offering Termination Notice”)
from the Company, the Escrow Agent shall promptly after receipt of such Offering
Termination Notice, send to each Purchaser listed on the list held by the Escrow
Agent pursuant to Section 3 whose total subscription amount shall not have been
released pursuant to paragraph (b) or (c) of this Section 4, in the manner set
forth in paragraph (d) of this Section 4, a check to the order of such Purchaser
in the amount of the remaining subscription amount held by the Escrow Agent on
behalf of such Purchaser as set forth on such list held by the Escrow Agent. The
Escrow Agent shall notify the Company and the Placement Agents of the
distribution of such funds to the Purchasers.

                    (b) In the event that (i) the Securities have been
subscribed for and funds in respect thereof shall have been deposited with the
Escrow Agent in accordance with this Agreement and (ii) no Offering Termination
Notice shall have been delivered to the Escrow Agent, the Company and the
Placement Agents shall deliver to the Escrow Agent a joint notice, not more than
three (3) Business Days prior to the Closing Date, substantially in the form of
Exhibit C hereto (a “Closing Notice”), designating the proceeds which are to be
distributed on such Closing Date, and identifying the Purchasers and the number
of Securities to be sold to each thereof on such Closing Date. The Escrow Agent,
after receipt of such Closing Notice, on such Closing Date, shall pay, in
federal or other immediately available funds and otherwise in the manner
specified in such Closing Notice, an amount equal to the aggregate of the
subscription amounts paid by the Purchasers identified in such Closing Notice
for the Securities to be sold on such Closing Date as set forth on the list held
by the Escrow Agent pursuant to Section 3.

                    (c) If at any time and from time to time prior to the
release of any Purchaser’s total subscription amount pursuant to paragraph (a)
or (b) of this Section 4 from escrow, the Company shall deliver to the Escrow
Agent a notice, substantially in the form of Exhibit D hereto (a “Subscription
Termination Notice”), to the effect that any or all of the subscriptions of

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such Purchaser have been rejected by the Company (a “Rejected Subscription”),
the Escrow Agent, promptly after receipt of such Subscription Termination
Notice, shall promptly send to such Purchaser, in the manner set forth in
paragraph (d) of this Section 4, a check to the order of such Purchaser in the
amount of such Rejected Subscription amount.

                    (d) For the purposes of this Section 4, any check that the
Escrow Agent shall be required to send to any Purchaser shall be sent to such
Purchaser by first class mail, postage prepaid, at such Purchaser’s address
furnished to the Escrow Agent pursuant to Section 3.

          5. Escrow Agent; Duties and Liabilities.

                    (a) It is expressly understood and agreed by the parties
that (i) the duties of the Escrow Agent, as herein specifically provided, are
purely ministerial in nature; (ii) the Escrow Agent shall not have any duty to
deposit the Escrowed Funds except as provided herein, (iii) the Escrow Agent
shall not be responsible or liable in any manner whatsoever for, or have any
duty to inquire into, the sufficiency, correctness, genuineness or validity of
the notices it receives hereunder, or the identity, authority or rights of any
of the parties; (iv) the Escrow Agent shall have no duties or responsibilities
in connection with the Escrowed Funds, other than those specifically set forth
in this Agreement; (v) the Escrow Agent shall not incur any liability in acting
upon any signature, written notice, request, waiver, consent, receipt, or any
other paper or document believed by the Escrow Agent to be genuine; (vi) the
Escrow Agent may assume that any person purporting to have authority to give
notices on behalf of any of the parties in accordance with the provisions hereof
has been duly authorized to do so; (vii) the Escrow Agent shall incur no
liability whatsoever except for such resulting from its bad faith, willful
misconduct or gross negligence, as long as the Escrow Agent has acted in good
faith in performance of its duties hereunder; and (viii) upon the Escrow Agent’s
performance of its obligations under Section 4 hereof, the Escrow Agent shall be
relieved of all liability, responsibility and obligation with respect to the
Escrowed Funds or arising out of or under this Agreement.

                    (b) The Escrow Agent shall not be under any obligation to
take any legal action in connection with this Agreement or towards its
enforcement or performance, or to appear in, prosecute or defend any action or
legal proceeding, or to file any return, or pay or withhold any income or other
tax payable with respect to any Escrowed Funds or the disbursement thereof, any
payment of or in respect of which shall constitute a Loss under Section 6 below,
and the Placement Agents and the Company agree to provide to the Escrow Agent
such information and documentation as the Escrow Agent may reasonably request in
connection therewith.

                    (c) In the event of any disagreement relating to the
Escrowed Funds or the disbursement thereof resulting in adverse claims or
demands being made in connection with the Escrowed Funds or in the event that
the Escrow Agent is in doubt as to what action it should take hereunder, the
Escrow Agent shall be entitled to retain the Escrowed Funds, but only to the
extent of the Escrowed Funds in controversy, until the Escrow Agent shall have
received a final non-appealable order of a court of competent jurisdiction
directing delivery of the Escrowed Funds, in which event the Escrow Agent shall
disburse the Escrowed Funds in accordance with such order. Any court order shall
be accompanied by a legal opinion by counsel for the presenting party
satisfactory to the Escrow Agent to the effect that the order is final and non-

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appealable. The Escrow Agent shall act on such court order and legal opinion
without further question. If a proceeding for such determination is not begun
and diligently continued, the Escrow Agent may make an ex parte application, or
bring any appropriate action, for leave to deposit the Escrowed Funds in the
Supreme Court of the State of New York, County of New York seeking such
determination or such declaratory relief as the Escrow Agent shall deem
reasonably necessary under the circumstances, and the parties each hereby
irrevocably consent to the entering of such an ex parte order pursuant to all
applicable laws, rules and procedures of the State of New York and such court.
The Escrow Agent shall be reimbursed by the Company, for all of the Escrow
Agent’s reasonable costs and expenses of such action or proceeding, including,
without limitation, reasonable attorneys’ fees and disbursements.

                    (d) The Escrow Agent does not have any interest in the
Escrowed Funds deposited hereunder and is serving as escrow agent only and
having only possession thereof. Section 5(c), Section 5(d) and Section 6 shall
survive any termination of this Agreement or the resignation or removal of the
Escrow Agent in accordance with Section 5(h) below except with regards to
Section 7 in the event the Escrow Agent is not paid its annual administration
fee.

                    (e) None of the provisions of this Agreement shall require
the Escrow Agent to expend or risk its own funds or otherwise to incur any
liability, financial or otherwise, in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers if it shall have
reasonable grounds for believing that repayment of such funds or indemnity
satisfactory to it against such risk or liability is not assured to it.

                    (f) The Escrow Agent may consult with independent counsel
and the advice or any opinion of counsel shall be full and complete
authorization and protection in respect of any action taken or omitted by it
hereunder in good faith and in accordance with such advice or opinion of
counsel.

                    (g) The Escrow Agent may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or through agents,
attorneys, custodians or nominees appointed with due care, and shall not be
responsible for any willful misconduct or gross negligence on the part of any
agent, attorney, custodian or nominee so appointed.

                    (h) The Escrow Agent may at any time resign by giving ten
(10) days written notice of resignation to the Company and the Placement Agents.
Upon receiving such notice of resignation, the Company and the Placement Agents
shall promptly appoint a successor and, upon the acceptance by the successor of
such appointment, release the resigning Escrow Agent from its obligations
hereunder (other than obligations and liabilities arising by reason of the prior
bad faith, willful misconduct or gross negligence of the Escrow Agent) by
written instrument, a copy of which instrument shall be delivered to the
resigning Escrow Agent and the successor. If no successor shall have been so
appointed and have accepted appointment within forty-five (45) days after the
giving of such notice of resignation, the resigning Escrow Agent may petition
any court of competent jurisdiction for the appointment of a successor.

          The Company and the Placement Agents, by issuing a joint written
instruction to the Escrow Agent, shall have the right to terminate the
appointment of the Escrow Agent. Such joint written instruction shall specify
the date upon which such termination shall take effect.

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Thereafter, the Escrow Agent shall have no further obligation hereunder (other
than obligations and liabilities arising by reason of the prior bad faith,
willful misconduct or gross negligence of the Escrow Agent) except to hold the
Escrowed Funds as depository. The Company and the Placement Agents agree that in
the event of such termination, they will cooperate with each other to jointly
appoint a banking corporation, trust company or attorney as successor Escrow
Agent. The Escrow Agent shall refrain from taking any action until receiving
written instructions jointly signed by the Company and the Placement Agents
designating the successor Escrow Agent.

                    (i) Any partnership or other similar entity into which the
Escrow Agent may be merged or converted or with which it may be consolidated, or
any partnership, corporation or other similar entity resulting from any merger,
conversion or consolidation to which the Escrow Agent shall be a party, or any
partnership, corporation or other similar entity succeeding to the business of
the Escrow Agent shall be the successor of the Escrow Agent hereunder without
the execution or filing of any paper with any party hereto or any further act on
the part of any of the parties hereto except where an instrument of transfer or
assignment is required by law to effect such succession, anything herein to the
contrary notwithstanding.

                    (j) No printed or other matter in any language which
mentions the Escrow Agent’s name or the rights, powers, or duties of the Escrow
Agent shall be issued by the other parties hereto or on such parties’ behalf
unless the Escrow Agent shall first have given its specific written consent
thereto. The Escrow Agent hereby consents to the use of its name and the
reference to the escrow arrangement in the Subscription Agreements and the
Placement Agency Agreement.

          6. Indemnification of Escrow Agent. The Company hereby agrees to
indemnify and hold the Escrow Agent harmless from any and all liabilities,
obligations, damages, losses, claims, encumbrances, costs or expenses
(including, without limitation, court costs, reasonable attorneys’ fees and
expenses) (any or all of the foregoing herein referred to as a “Loss”) arising
hereunder or under or with respect to the Escrowed Funds, except for Losses
resulting from the bad faith, willful misconduct or gross negligence of the
Escrow Agent. Anything in this Agreement to the contrary notwithstanding, in no
event shall the Escrow Agent be liable for special, indirect or consequential
loss or damage of any kind whatsoever (including but not limited to lost
profits), even if the Escrow Agent has been advised of the likelihood of such
loss or damage and regardless of the form of action.

          The parties hereto acknowledge that the foregoing indemnities shall
survive the resignation or the removal of the Escrow Agent or the termination of
this Agreement.

          7. Fees. The Company agrees to (a) pay the Escrow Agent the annual
administration fee of $2,500 per annum without pro-ration for partial years,
upon execution of this Agreement and from time to time thereafter reasonable
compensation for the services to be rendered hereunder, which unless otherwise
agreed in writing shall be as described in Schedule 1 attached hereto, and (b)
pay or reimburse the Escrow Agent upon request for all expenses, disbursements
and advances, including reasonable attorney’s fees and expenses, incurred or
made by it in connection with the preparation, execution, performance, delivery,
modification and termination of this Agreement.

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          8. Security Procedures. In the event funds transfer instructions are
given (other than in writing at the time of execution of this Agreement, as
indicated in Schedule 2 attached hereto), whether in writing, by telecopier or
otherwise, the Escrow Agent is authorized to seek confirmation of such
instructions by telephone call-back to the person or persons designated on
Schedule 3 hereto, and the Escrow Agent may rely upon the confirmation of anyone
purporting to be the person or persons so designated. The individuals authorized
to give and confirm funds transfer instructions may be changed only in a writing
actually received and acknowledged by the Escrow Agent. If the Escrow Agent is
unable to contact any of the authorized representatives identified in Schedule
3, the Escrow Agent is hereby authorized to seek confirmation of such
instructions by telephone call-back to any one or more of your executive
officers (“Executive Officers”), as the Escrow Agent may select. Such Executive
Officer shall deliver to the Escrow Agent a fully executed Incumbency
Certificate, and the Escrow Agent may rely upon the confirmation of anyone
purporting to be any such officer. The Escrow Agent and the beneficiary’s bank
in any funds transfer may rely solely upon any account numbers or similar
identifying numbers provided by the Company or the Placement Agents to identify
(a) the beneficiary, (b) the beneficiary’s bank, or (c) an intermediary bank.
The Escrow Agent may apply any of the Escrowed Funds for any payment order it
executes using any such identifying number, even when its use may result in a
person other than the beneficiary being paid, or the transfer of funds to a bank
other than the beneficiary’s bank or an intermediary bank designated. The
parties to this Agreement acknowledge that these security procedures are
commercially reasonable. All funds transfer instructions must include the
signature of the person(s) authorizing said funds transfer, which shall be an
individual who is designated to give funds transfer instructions as designated
in Schedule 3.

          9. Notices. Any notice or demand desired or required to be given
hereunder shall be in writing and deemed given when sent by facsimile
transmission with receipt confirmed to the telephone number below and addressed
as follows:

 

 

 

 

 

a.

If to the Escrow Agent to:

 

 

 

 

JPMorgan Chase Bank, N.A.

 

 

 

Escrow Services

 

 

 

4 New York Plaza, 21st Floor

 

 

 

New York, NY 10004

 

 

 

Facsimile: (212) 623-6168

 

 

 

Attention: Larissa Urcia/Florence Hanley

 

 

 

 

 

 

 

with wire transfers to:

 

 

 

 

 

 

 

JPMorgan Chase Bank, N.A

 

 

 

ABA # 021000021

 

 

 

For credit to A/C #: 304967424

 

 

 

Delcath/Canaccord Registered Direct Escrow

 

 

 

Attention: Florence Hanley

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b.

If to the Company, to:

 

 

 

 

Delcath Systems, Inc.

 

 

 

600 Fifth Avenue

 

 

 

23rd Floor

 

 

 

New York, New York 10017

 

 

 

Facsimile: (212) 489-2102

 

 

 

Attention: Chief Executive Officer

 

 

 

 

 

 

 

with copies to:

 

 

 

 

 

 

 

Gersten Savage LLP

 

 

 

600 Lexington Avenue

 

 

 

New York, New York 10022

 

 

 

Facsimile: (212) 980-5192

 

 

 

Attention: Arthur S. Marcus, Esq.

 

 

 

 

 

c.

If to the Placement Agent, to::

 

 

 

 

Canaccord Adams Inc.

 

 

 

535 Madison Avenue

 

 

 

2nd Floor

 

 

 

New York, New York 10022

 

 

 

Facsimile: (212) 849-3938

 

 

 

Attention: David J. Strupp, Jr.

 

 

 

 

 

 

 

ThinkEquity Partners LLC

 

 

 

600 Montgomery Street

 

 

 

8th Floor

 

 

 

San Francisco, California 94111

 

 

 

Facsimile: (415) 249-0975

 

 

 

Attention: Ted Mitchell

 

 

 

 

 

 

 

with copies to:

 

 

 

 

 

 

 

Stroock & Stroock & Lavan LLP

 

 

 

180 Maiden Lane

 

 

 

New York, New York 10038

 

 

 

Facsimile: (212) 806-6006

 

 

 

Attention: Christopher J. Doyle, Esq.

or to such other address or account information as hereafter shall be designated
in writing by the applicable party to the other parties hereto. Notwithstanding
the above, in the case of communications delivered to the Escrow Agent pursuant
to this section, such communications

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shall be deemed to have been given on the date received by the Escrow Agent. In
the event that the Escrow Agent, in its sole discretion, shall determine that an
emergency exists, the Escrow Agent may use such other means of communication as
the Escrow Agent deems appropriate. For the purposes of this section, “Business
Day” shall mean any day other than a Saturday, Sunday or any other day on which
the Escrow Agent located at the notice address set forth in this section is
authorized or required by law or executive order to remain closed.

          10. Entire Agreement. This Agreement and any exhibits and schedules
hereto constitute the entire agreement between the parties hereto pertaining to
the subject matters hereof, and supersede all negotiations, preliminary
agreements and all prior and contemporaneous discussions and understandings of
the parties in connection with the subject matters hereof. Any exhibits and
schedules hereto are hereby incorporated into and made a part of this Agreement.

          11. Amendments. No amendment, waiver, change or modification of any of
the terms, provisions or conditions of this Agreement shall be effective unless
made in writing and signed by all of the parties hereto or by their duly
authorized agents. Waiver of any provision of this Agreement shall not be deemed
a waiver of future compliance therewith and such provision shall remain in full
force and effect.

          12. Severability. In the event any provision of this Agreement is held
invalid, illegal or unenforceable, in whole or in part, the remaining provisions
of this Agreement shall not be affected thereby and shall continue to be valid
and enforceable.

          13. Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the State of New York without regard to any
applicable principles of conflicts of law.

          14. Submission to Jurisdiction. ANY LEGAL ACTION OR PROCEEDING WITH
RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK
OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND,
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HERETO HEREBY ACCEPTS
FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS AND APPELLATE COURTS FROM ANY THEREOF. EACH
PARTY HERETO HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF
THE AFOREMENTIONED COURTS IN ANY ACTION OR PROCEEDING BY THE MAILING OF COPIES
THEREOF TO SUCH PARTY BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, RETURN
RECEIPT REQUESTED, TO SUCH PARTY, AT ITS ADDRESS SPECIFIED HEREIN. EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION,
ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH
ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS.

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          15. Headings and Captions. The titles or captions of paragraphs in
this Agreement are provided for convenience of reference only, and shall not be
considered a part hereof for purposes of interpreting or applying this
Agreement, and such titles or captions do not define, limit, extend, explain or
describe the scope or extent of this Agreement or any of its terms or
conditions.

          16. Gender and Number. Words and phrases herein shall be construed as
in the singular or plural number and as masculine, feminine or neuter gender,
according to the context.

          17. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument. Facsimiles may also be
deemed originals for the purpose of this Agreement.

          18. Binding Effect on Successors and Assigns. This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective legal representatives, heirs, successors and assigns, and the
subscribers of the Securities. Nothing in this Agreement, express or implied, is
intended to confer upon any party, other than the parties hereto (and their
respective legal representatives, heirs, successors and assigns), any rights,
remedies, obligations or liabilities.

          19. Account Opening Information. To help the government fight the
funding of terrorism and money laundering activities, Federal law requires all
financial institutions to obtain, verify, and record information that identifies
each person who opens an account. When an account is opened, the Escrow Agent
will ask for information that will allow it to identify relevant parties. Upon
execution of this Agreement, each party shall provide the Escrow Agent with a
fully executed W-8 or W-9 Internal Revenue Service form, which shall include
their Tax Identification Number (TIN) as assigned by the Internal Revenue
Service.

          20. Force Majeure. In the event that any party or the Escrow Agent is
unable to perform its obligations under the terms of this Agreement because of
acts of God, strikes, equipment or transmission failure or damage reasonably
beyond its control, or other cause reasonably beyond its control, the Escrow
Agent shall not be liable for damages to the other parties for any damages
resulting from such failure to perform otherwise from such causes. Performance
under this Agreement shall resume when the Escrow Agent is able to perform
substantially.

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          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

 

 

 

 

 

ESCROW AGENT:

 

COMPANY:

 

 

 

 

 

JP Morgan Chase Bank

 

Delcath Systems, Inc.

 

 

 

 

 

 

 

 

 

 

By:

/s/ Larissa R. Urcia

 

By:

/s/ Richard L. Taney

 

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Name: Larissa R. Urcia

 

 

Name: Richard L. Taney

 

Title: Vice President

 

 

Title: Chief Executive Officer

 

 

 

 

 

PLACEMENT AGENTS:

 

 

 

 

 

 

 

 

Canaccord Adams Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ Joseph Ranieri

 

 

 

 

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Name: Joseph Ranieri

 

 

 

 

Title: Managing Director

 

 

 

 

 

 

 

 

 

 

 

 

 

ThinkEquity Partners LLC

 

 

 

 

 

 

 

 

By:

/s/ Harriet Britt

 

 

 

 

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Name: Harriet Britt

 

 

 

 

Title: Chief Compliance Officer

 

 

 

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EXHIBIT A

SUMMARY OF ESCROWED FUNDS TO BE RECEIVED

 

 

 

 

 

Name and
Address of
Purchaser

Number of
Shares

Number of
Warrants

Subscription
Amount

Receipt
Confirmed by
Escrow Agent

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A-1

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EXHIBIT B

FORM OF OFFERING TERMINATION NOTICE

______________, 2007

JPMorgan Chase Bank, N.A.
Escrow Services
4 New York Plaza, 21st Floor
New York, NY 10004
Attention: Florence Hanley/Larissa Urcia

Dear _______________ :

          Pursuant to Section 4(a) of the Escrow Agreement dated as of September
18, 2007 (the “Escrow Agreement”) by and among Canaccord Adams Inc., ThinkEquity
Partners LLC, Delcath Systems, Inc. (the “Company”) and you, the Company hereby
notifies you of the termination of the offering of the Securities (as that term
is defined in the Escrow Agreement) and directs you to make payments to the
Purchasers as provided for in Section 4(a) of the Escrow Agreement.

 

 

 

 

Very truly yours,

 

 

 

 

DELCATH SYSTEMS, INC.

 

 

 

 

By:

 

 

 

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Name:

 

 

Title:

B-1

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EXHIBIT C

FORM OF CLOSING NOTICE

____________ , 2007

JPMorgan Chase Bank, N.A.
Escrow Services
4 New York Plaza, 21st Floor
New York, NY 10004
Attention: Florence Hanley/Larissa Urcia

Dear ____________ :

          Pursuant to Section 4(b) of the Escrow Agreement dated as of September
18, 2007 (the “Escrow Agreement”), by and among Canaccord Adams Inc.
(“Canaccord”), ThinkEquity Partners LLC (“ThinkEquity” and together with
Canaccord, the “Placement Agents”), Delcath Systems, Inc. (the “Company”) and
you, the Company hereby certifies that it has received subscriptions for the
Securities (as that term is defined in the Escrow Agreement) and the Company
will sell and deliver Securities to the Purchasers thereof at a closing to be
held on September 21, 2007 (the “Closing Date”). The names of the Purchasers
concerned, the number of Securities subscribed for by each of such Purchasers
and the related subscription amounts are set forth on Schedule A annexed hereto.

          Please accept these instructions as standing instructions for the
closing to be held on the Closing Date. The parties hereto certify that their
instructions may be transmitted to you via facsimile.

          We hereby request that the aggregate subscription amount be paid as
follows:

          1. To the Company, $ ____________ , pursuant to the following wire
transfer instructions:

          2. To Canaccord Adams Inc., $ ____________ , pursuant to the following
wire transfer instructions:

C-1

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          3. To ThinkEquity Partners LLC, $ ____________ , pursuant to the
following wire transfer instructions:

          4. To Stroock & Stroock & Lavan LLP, $ ____________ , pursuant to the
following wire transfer instructions:

          5. To JPMorgan Chase Bank, N.A. as Escrow Agent, $ ____________ ,
pursuant to the following wire transfer instructions:

          These instructions may be executed in any number of counterparts, each
of which shall be deemed to be an original, and all of which together shall
constitute one and the same instrument.

[Signatures on following page]

C-2

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DELCATH SYSTEMS, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Name:

 

 

Title:

 

 

 

 

CANACCORD ADAMS INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Name:

 

 

Title:

 

 

 

 

THINKEQUITY PARTNERS LLC

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Name:

 

 

Title:

C-3

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SCHEDULE A

 

 

 

 

 

 

 

Name of Purchaser

 

Number of Shares

 

Number of
Warrants

 

Subscription
Amount

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--------------------------------------------------------------------------------

 

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EXHIBIT D

FORM OF SUBSCRIPTION TERMINATION NOTICE

____________ , 2007

JPMorgan Chase Bank, N.A.
Escrow Services
4 New York Plaza, 21st Floor
New York, NY 10004
Attention: Florence Hanley/Larissa Urcia

Dear ____________ :

          Pursuant to Section 4(c) of the Escrow Agreement dated as of September
18, 2007 (the “Escrow Agreement”), by and among Canaccord Adams Inc.,
ThinkEquity Partners LLC, Delcath Systems, Inc. (the “Company”) and you, the
Company hereby notifies you that the following subscription(s) have been
rejected:

 

 

 

 

 

 

 

Name of
PURCHASER

 

Number of
Subscribed
SHARES
REJECTED

 

Number of
Subscribed
WARRANTS
REJECTED

 

Dollar Amount
REJECTED
SUBSCRIPTION

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

D-1

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SCHEDULE 1

          $2,500 per annum without pro-ration for partial years.

--------------------------------------------------------------------------------

SCHEDULE 2

Name of Company: Delcath Systems, Inc.
Wiring Instructions:

Name of Placement Agents:

Canaccord Adams Inc.
Wiring Instructions:

ThinkEquity Partners LLC
Wiring Instructions:

Name of Counsel to Placement Agents: Stroock & Stroock & Lavan LLP
Wire Instructions

 

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SCHEDULE 3

Telephone Number(s) for Person(s)
Designated to Give and Confirm Funds Transfer Instructions

If to Company:

 

 

 

 

 

 

 

Name

 

Telephone Number

 

Signature Specimen

 

 

 

 

 

 

1.

Richard Taney

 

(212) 489-2100

 

 

 

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--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

2.

Paul Feinstein

 

(212) 489-2100

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

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If to the Lead Placement Agent:

 

 

 

 

 

 

 

Name

 

Telephone Number

 

Signature Specimen

 

 

 

 

 

 

1.

Jennifer Pardi

 

(617) 788-1554

 

 

 

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--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

2.

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

3.

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

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