Exhibit 10.2

FORM OF SUBSCRIPTION AGREEMENT

Delcath Systems, Inc.
600 Fifth Avenue
23rd Floor
New York, New York 10017

Ladies and Gentlemen:

The undersigned (the “Investor”) hereby confirms and agrees with you as follows:

1. This Subscription Agreement (this “Agreement”) is made as of the date set
forth below between Delcath Systems, Inc., a Delaware corporation (the
“Company”) and the Investor.

2. The Company has authorized the sale and issuance to certain investors of up
to 3,833,108 shares (the “Shares”) of its common stock, par value $0.01 per
share (the “Common Stock”) and warrants (the “Warrants” in the form attached
hereto as Exhibit B) to purchase up to 1,916,554 shares of Common Stock (the
“Warrant Shares”)(such number being 50% of the number of Shares so purchased)
for a purchase price of $3.70 per unit (the “Purchase Price”). The Shares and
Warrants are referred to collectively herein as the “Securities.” The Investor
acknowledges that the Company intends to enter into subscription agreements in
substantially the same form as this Agreement with certain other investors. The
Investor acknowledges and agrees that there is no minimum offering amount.

3. The offering and sale of the Securities (the “Offering”) is being made
pursuant to (a) an effective Registration Statement on Form S-3, initially filed
on May 25, 2007 (No. 333-143280) by the Company with the Securities Exchange
Commission (the “Commission”) and any registration statement relating to the
Offering and filed pursuant to Rule 462(b) under the Rules and Regulations
(collectively, the “Registration Statement”), which contains the base prospectus
dated May 25, 2007 (the “Base Prospectus”), (b) if applicable, certain “free
writing prospectus” (as that term is defined in Rule 405 under the Securities
Act of 1933, as amended), that have or will be filed with the Commission and
delivered to the Investor on or prior to the date hereof, (c) if applicable, a
preliminary prospectus supplement to the Base Prospectus (together with the Base
Prospectus, the “Statutory Prospectus”), and (d) a final prospectus supplement
(the “Prospectus Supplement” and together with the Base Prospectus, the
“Prospectus”) containing certain supplemental information regarding the
Securities and terms of the Offering that will be filed with the Commission and
delivered to the Investor (or made available to the Investor by the filing by
the Company of an electronic version thereof with the Commission) along with the
Company’s counterpart to this Agreement. The Investor hereby consents to the
receipt of the Company’s Prospectus in portable document format, or PDF, via
electronic e-mail. The Investor hereby confirms that it has had full access to
the Base Prospectus and the Company’s periodic reports and other information
incorporated by reference therein, and was able to read, review, download and
print such materials.

4. As of the Closing (as defined below) and subject to the terms and conditions
hereof, the Company and the Investor agree that the Investor will purchase from
the Company and the Company will issue and sell to the Investor (i) such number
of shares of Common Stock, and (ii) such number of Warrants as is set forth on
the signature page hereto (the “Signature Page”) for a purchase price of $3.70
per unit. The Investor acknowledges that the Offering is not a firm commitment
underwriting and that there is no minimum offering amount. This offering will
not clear directly through the

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Placement Agents (as defined below) acting in such capacity. Consequently, the
Investor must instruct their individual broker how to settle the transaction.

5. The completion of the purchase and sale of the Securities (the “Closing”)
shall occur at a place and time (the “Closing Date”) to be specified by the
Company and the Lead Placement Agent (as defined below), and of which the
Investors will be notified in advance by the Placement Agents, in accordance
with Rule 15c6-1 promulgated under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”). At the Closing, (a) the Company shall cause
American Stock Transfer & Trust Company, the Company’s transfer agent, to
deliver to the Investor the number of Securities set forth on the Signature Page
registered in the name of the Investor, or if so indicated on the Signature Page
hereto, in the name of a nominee designated by the Investor and (b) the
aggregate purchase price for the Securities being purchased by the Investor will
be delivered by or on behalf of the Investor to the Company via Delivery Versus
Payment (“DVP”), the provisions set forth in Exhibit A hereto shall be
incorporated herein by reference as if set forth fully herein.

6. The Company has entered into a Placement Agency Agreement (the “Placement
Agreement”), dated September 18, 2007 with Canaccord Adams Inc. (“Canaccord”)
and ThinkEquity Partners LLC (“ThinkEquity” and together with Canaccord, the
“Placement Agents”), which will act as the Company’s placement agents with
respect to the Offering and receive a fee in connection with the sale of the
Securities. Canaccord is acting as the lead placement agent (the “Lead Placement
Agent”). The Placement Agreement contains certain representations and warranties
of the Company. The Company acknowledges and agrees that the Investor may rely
on the representations and warranties made by it to the Placement Agents in
Section 2 of the Placement Agreement to the same extent as if such
representations and warranties had been incorporated in full herein and made
directly to the Investor, which shall be third party beneficiary thereof.

7. The obligations of the Company and the Investor to complete the transactions
contemplated by this Agreement shall be subject to the following:

          (a) The Company’s obligation to issue and sell the Securities to the
Investor shall be subject to: (i) the receipt by the Company of the purchase
price for the Securities being purchased hereunder as set forth on the Signature
Page, and (ii) the accuracy of the representations and warranties made by the
Investor and the fulfillment of those undertakings of the Investor to be
fulfilled prior to the Closing Date.

          (b) The Investor’s obligation to purchase the Securities will be
subject to the accuracy of the representations and warranties made by the
Company and the fulfillment of those undertakings of the Company to be fulfilled
prior to the Closing Date, including without limitation, those contained in the
Placement Agreement, and to the condition that the Lead Placement Agent shall
not have: (i) terminated the Placement Agreement pursuant to the terms thereof
or (ii) determined that the conditions to closing in the Placement Agreement
have not been satisfied. The Investor’s obligations are expressly not
conditioned on the purchase of the Securities by any or all of the other
Investors that they have agreed to purchase from the Company.

8. The Company hereby makes the following representations, warranties and
covenants to the Investor:

          (a) The Company has the requisite corporate power and authority to
enter into and to consummate the transactions contemplated by this Agreement and
otherwise to carry out its

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obligations hereunder. The execution and delivery of this Agreement by the
Company and the consummation by it of the transactions contemplated hereunder
have been duly authorized by all necessary action on the part of the Company.
This Agreement has been duly executed by the Company and, when delivered in
accordance with the terms hereof, will constitute the valid and binding
obligation of the Company enforceable against the Company in accordance with its
terms, except as may be limited by any bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws affecting the
enforcement of creditors’ rights generally or by general principles of equity.

          (b) The Company shall (i) before the opening of trading on The NASDAQ
Capital Market on the next trading day after the date hereof, issue a press
release, disclosing all material aspects of the transactions contemplated hereby
and (ii) make such other filings and notices in the manner and time required by
the Commission with respect to the transactions contemplated hereby. Upon the
issuance of the press release described in the immediately preceding sentence,
the Investor will not be in receipt of any material, non-public information
provided to it by the Company, its officers or directors. The Company shall not
identify the Investor by name in any press release or public filing, or
otherwise publicly disclose the Investor’s name, without the Investor’s prior
written consent, unless required by law or the rules and regulations of any
self-regulatory organization which the Company or its securities are subject.

          (c) If all or any portion of a Warrant is exercised at a time when
there is an effective registration statement to cover the issuance or resale of
the Warrant Shares or if the Warrant is exercised via cashless exercise, the
Warrant Shares issued pursuant to any such exercise shall be issued free of all
legends. If at any time following the date hereof the Registration Statement (or
any subsequent registration statement registering the Warrant Shares) is not
effective or is not otherwise available for the sale or resale of the Warrant
Shares, the Company shall immediately notify the holders of the Warrants in
writing that such registration statement is not then effective and thereafter
shall promptly notify such holders when the registration statement is effective
again and available for the sale or resale of the Warrant Shares. The Company
shall use best efforts to keep a registration statement (including the
Registration Statement) registering the issuance or resale of the Warrant Shares
effective during the term of the Warrants.

          (d) The Company will file with the Commission the annual reports and
the information, documents and other reports (or copies of such portions of any
of the foregoing as the Commission may by rules and regulations prescribe) that
are specified under Sections 13 and 15(d) of the Exchange Act within the time
periods specified therein or in the relevant forms.

          (e) The Company will not give the Investor any material non-public
information without the prior written consent of the Investor.

9. The Investor hereby makes the following representations, warranties and
covenants to the Company:

          (a) The Investor represents that (i) it has had full access to the
Base Prospectus and the Company’s periodic reports and other information
incorporated by reference therein, prior to or in connection with its receipt of
this Agreement, (ii) it is knowledgeable, sophisticated and experienced in
making, and is qualified to make, decisions with respect to investments in
securities representing an investment decision like that involved in the
purchase of the Securities, and (iii) it does not have any

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agreement or understanding, directly or indirectly, with any person or entity to
distribute any of the Securities.

          (b) The Investor represents and warrants to, and covenants with, the
Company that (i) the Investor has answered all questions on the Signature Page
for use in preparation of the Prospectus Supplement and the answers thereto are
true and correct as of the date hereof and will be true and correct as of the
Closing Date and (ii) the Investor, in connection with its decision to purchase
the number of Securities set forth on the Signature Page, is relying only upon
the General Disclosure Package (as defined below) and the representations and
warranties of the Company contained herein.

          (c) (i) the Investor has full right, power, authority and capacity to
enter into this Agreement and to consummate the transactions contemplated hereby
and has taken all necessary action to authorize the execution, delivery and
performance of this Agreement, and (ii) this Agreement constitutes a valid and
binding obligation of the Investor enforceable against the Investor in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ and contracting parties’ rights generally and except as
enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law)
and except as the indemnification agreements of the Investors herein may be
legally unenforceable.

          (d) The Investor understands that nothing in this Agreement or any
other materials presented to the Investor in connection with the purchase and
sale of the Securities constitutes legal, tax or investment advice. The Investor
has consulted such legal, tax and investment advisors as it, in its sole
discretion, has deemed necessary or appropriate in connection with its purchase
of Securities.

          (e) The making, execution and performance of this Agreement by the
Investor and the consummation of the transactions contemplated herein will not
conflict with or result in a breach or violation of any of the terms and
provisions of, or constitute a default under, (i) the charter, bylaws or other
organizational documents of such Investor, as applicable, or (ii) any law,
order, rule, regulation, writ, injunction, judgment or decree of any court,
administrative agency, regulatory body, government or governmental agency or
body, domestic or foreign, having jurisdiction over such Investor or its
properties, except for any conflict, breach, violation or default which is not
reasonably likely to have a material adverse effect on such Investor’s
performance of its obligations hereunder or the consummation of the transactions
contemplated hereby.

          (f) The Investor will maintain the confidentiality of all information
acquired as a result of the transactions contemplated herein prior to the public
disclosure of that information by the Company. Notwithstanding the foregoing,
other than the existence and terms of this financing, the Investor is not in
possession of any material, non-public information pertaining to the Company.

          (g) Neither the Investor nor any person or entity acting on behalf of,
or pursuant to any understanding with or based upon any information received
from, the Investor has, directly or indirectly, engaged in any transactions in
the securities of the Company (including, without limitation, any Short Sales
involving the Company’s securities) since the earlier to occur of (i) the time
that the Investor was first contacted by a Placement Agent or the Company with
respect to the transactions contemplated hereby and (ii) the date that is the
fifth (5th) trading day prior to the date of this Agreement. “Short Sales”
include, without limitation, all “short sales” as defined in Rule 200
promulgated under Regulation SHO under the Exchange Act, whether or not against
the box, and all types of direct and indirect stock pledges, forward sale
contracts, options, puts, calls, swaps, “put

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equivalent positions” (as such term is defined in Rule 16a-1(h) under the
Exchange Act) and similar arrangements (including on a total return basis), and
sales and other transactions through non-U.S. broker dealers or foreign
regulated brokers (but shall not be deemed to include the location or
reservation of borrowable shares of the Company’s securities). The Investor
covenants that neither it, nor any person acting on behalf of, or pursuant to
any understanding with or based upon any information received from, the Investor
will engage in any transactions in the securities of the Company (including
Short Sales) prior to the time that the transactions contemplated by this
Agreement are publicly disclosed.

          (h) The Investor represents that, except as set forth below, (i) it
has had no position, office or other material relationship within the past three
years with the Company or persons known to it to be affiliates of the Company,
(ii) it is not a, and it has no direct or indirect affiliation or association
with any, Financial Industry Regulatory Authority (“FINRA”) member or an
Associated Person (as such term is defined under the FINRA Membership and
Registration Rules Section 1011) as of the date hereof, and (iii) neither it nor
any group of investors (as identified in a public filing made with the
Commission) of which it is a member, acquired, or obtained the right to acquire,
20% or more of the Common Stock (or securities convertible or exercisable for
Common Stock) or the voting power of the Company on a post-transaction basis.
Exceptions:

 

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(If no exceptions, write “none.” If left blank, response will be deemed to be
“none.”)

          (i) The Investor represents that it has received (or otherwise had
made available to it by the filing by the Company of an electronic version
thereof with the Commission) the Statutory Prospectus, the documents
incorporated by reference therein, and any free writing prospectus
(collectively, the “General Disclosure Package”), prior to or in connection with
the receipt of this Agreement. The Investor acknowledges that, prior to delivery
of this Agreement to the Company, the Investor will receive certain additional
information regarding the Offering, including pricing information (the “Offering
Information”). Such information may be provided to the Investor by any means
permitted under the Act, including the Prospectus Supplement, a free writing
prospectus and oral communications.

          (j) The Investor acknowledges that no offer by the Investor to buy
Securities will be accepted and no part of the Purchase Price will be delivered
to the Company until the Investor has received the Offering Information and the
Company has accepted such offer by countersigning a copy of the Agreement, and
any such offer may be withdrawn or revoked, without obligation or commitment of
any kind, at any time prior to the Company (or a Placement Agent on behalf of
the Company) sending (orally, in writing or by electronic mail) notice of its
acceptance of such offer. Any indication of interest will involve no obligation
or commitment of any kind until the Investor has been delivered the Offering
Information and this Agreement is accepted and countersigned by or on behalf of
the Company.

          (k) The Investor, if outside the United States, will comply with all
applicable laws and regulations in each foreign jurisdiction in which it
purchases, offers, sells or delivers Securities or has in its possession or
distributes any offering material, in all cases at its own expense.

10. Notwithstanding anything to the contrary contained herein, the number of
Warrant Shares that may be acquired by the Investor upon exercise of the Warrant
shall be limited to the extent necessary to insure that, following such exercise
(or other issuance), the total number of shares of Common Stock

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then beneficially owned by such Investor and its Affiliates (as such term is
defined in the Warrant) and any other Persons (as such term is defined in the
Warrant) whose beneficial ownership of Common Stock would be aggregated with the
Investor’s for purposes of Section 13(d) of the Exchange Act, does not exceed
9.999% of the total number of issued and outstanding shares of Common Stock
(including for such purpose the shares of Common Stock issuable upon such
exercise). For such purposes, beneficial ownership shall be determined in
accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder.

11. Notwithstanding any investigation made by any party to this Agreement, all
covenants, agreements, representations and warranties made by the Company and
the Investor herein will survive the execution of this Agreement, the delivery
to the Investor of the Securities being purchased and the payment therefor. The
Placement Agents shall be third party beneficiaries with respect to
representations, warranties and agreements of the Investor in Section 9 hereof.

12. This Agreement may not be modified or amended except pursuant to an
instrument in writing signed by the Company and the Investor.

13. In case any provision contained in this Agreement should be invalid, illegal
or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein will not in any way be affected or
impaired thereby.

14. This Agreement will be governed by, and construed in accordance with, the
internal laws of the State of New York, without giving effect to the principles
of conflicts of law that would require the application of the laws of any other
jurisdiction.

15. This Agreement may be executed in two or more counterparts, each of which
will constitute an original, but all of which, when taken together, will
constitute but one instrument, and will become effective when one or more
counterparts have been signed by each party hereto and delivered to the other
parties. The Company and the Investor acknowledge and agree that the Company
shall deliver its counterpart to the Investor along with the Prospectus
Supplement (or the filing by the Company of an electronic version thereof with
the Commission).

16. The Investor acknowledges and agrees that such Investor’s receipt of the
Company’s counterpart to this Agreement, together with the Prospectus Supplement
(or the filing by the Company of an electronic version thereof with the
Commission), shall constitute written confirmation of the Company’s sale of
Securities to such Investor.

17. In the event that the Placement Agreement is terminated by the Lead
Placement Agent pursuant to the terms thereof, this Agreement shall terminate
without any further action on the part of the parties hereto.

18. This Agreement constitutes the entire agreement among the parties hereof
with respect to the subject matter hereof and supersedes all prior agreements
and understandings, both oral and written, between the parties with respect to
the subject matter hereof and thereof.

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INVESTOR SIGNATURE PAGE

 

 

Number of Shares:

 

 

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Number of Warrants:

 

 

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(such number to be equal to 50% of the number of Shares being purchased by the
Investor)

 

 

Purchase Price Per Unit: $3.70

 

 

 

 

Aggregate Purchase Price: $

 

 

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Please confirm that the foregoing correctly sets forth the agreement between us
by signing in the space provided below for that purpose.

Dated as of: September 18, 2007

 

 

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INVESTOR

 

 

 

 

By:

 

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Print Name:

 

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Title:

 

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Name that Securities are to be registered:

 

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Mailing Address:

 

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Taxpayer Identification Number:

 

 

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Manner of Settlement: DVP (see Exhibit A for explanation and instructions)

Agreed and Accepted this 18th day of September 2007:

DELCATH SYSTEMS, INC.

 

 

By:

 

 

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Name:

Title:

Sales of the Securities purchased hereunder were made pursuant to a registration
statement or in a transaction in which a final prospectus would have been
required to have been delivered in the absence of Rule 172 promulgated under the
Securities Act.

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Exhibit A

TO BE COMPLETED BY INVESTOR

SETTLING VIA DVP

Delivery versus payment (“DVP”) through DTC (i.e., the Company shall deliver
Shares registered in the Investor’s name and address as set forth on the
Signature Page of the Agreement to which this Exhibit A is attached and released
by American Stock Transfer & Trust Company, the Company’s transfer agent, to the
Investor at the Closing directly to the account(s) at the Placement Agents
identified by the Investor and simultaneously therewith payment shall be made
from such account(s) to the Company through DTC). NO LATER THAN ONE (1) BUSINESS
DAY AFTER THE EXECUTION OF THE AGREEMENT TO WHICH THIS EXHIBIT A IS ATTACHED BY
THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL:

 

 

(I)

NOTIFY THE PLACEMENT AGENT OF THE ACCOUNT OR ACCOUNTS AT THE PLACEMENT AGENT TO
BE CREDITED WITH THE SHARES BEING PURCHASED BY SUCH INVESTOR, AND

 

 

(II)

CONFIRM THAT THE ACCOUNT OR ACCOUNTS AT THE PLACEMENT AGENT TO BE CREDITED WITH
THE SHARES BEING PURCHASED BY THE INVESTOR HAVE A MINIMUM BALANCE EQUAL TO THE
AGGREGATE PURCHASE PRICE FOR THE SHARES BEING PURCHASED BY THE INVESTOR.

If the Shares are to be further credited to an account held elsewhere than at
the Placement Agents, please complete the information requested below in order
to facilitate such further credit:

 

 

 

 

 

Name of DTC Participant (broker-dealer at which the account or accounts to be
credited with the Shares are maintained)

 

 

 

 

 

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DTC Participant Number

 

 

 

 

 

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Name of Account at DTC Participant being credited with the Shares

 

 

 

 

 

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Account Number at DTC Participant being credited with the Shares

 

 

 

 

 

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Address for Notice and Delivery of Warrants

 

 

 

 

 

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Facsimile:

 

 

 

 

 

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Attention:

 

 

 

 

 

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Exhibit B

FORM OF WARRANT

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