Document:

EXHIBIT
4.5

    

    SUBSCRIPTION
AGREEMENT

    

    

    This
Subscription Agreement (this “Agreement”), dated as
of  December 12, 2008, by and among SignPath Pharma, Inc., a Delaware
corporation (the “Company”), and each
subscriber identified on the signature page hereto (each a “Subscriber” and
collectively the “Subscribers”).

    

    Whereas,
the Company proposes to offer for sale in a private placement solely to
“accredited investors” (the “Offering”), up to
1,000 units (“Units”), at a price
of $1,000 per Unit (the “Unit Purchase
Price”), each Unit consisting of one share of the Company’s Series A
Convertible Preferred Stock, $.10 par value (“Preferred Stock”),
and a warrant (the “Warrant”) to purchase
1,177 shares of the Company’s common stock, $.001 par value, (the “Common Stock”),
pursuant to the terms and conditions set forth herein and in the Confidential
Private Placement Memorandum, dated May 28, 2008 (the “Memorandum”) (the
Units, Preferred Stock, Warrants and the Conversion Shares (as defined herein)
are collectively referred to herein as the “Securities”), and the
Subscriber desires to acquire the number of Units set forth on the signature
page hereof;

    

    Whereas,
the terms of the Securities offered hereby are identical to the $1,500,000 of
Units sold by the Company on November 28, 2008 (the “Series A Preferred I
Closing”) pursuant to the Memorandum, a copy of which has been provided to the
Subscribers;

    

    Whereas,
the Offering includes Units which may be issued upon the exchange of the Bridge
Notes (as defined in the Memorandum);

    

    Whereas,
Meyers Associates L.P. is acting as placement agent (the “Placement Agent”) for
the Offering pursuant to a placement agency agreement (the “Agency Agreement”) by
and between the Company and the Placement Agent dated as of May 28,
2008;

    

    Whereas,
the Subscriber is delivering simultaneously herewith a completed confidential
investor questionnaire (the “Questionnaire”);

    

    Whereas,
the Company and the Subscribers are executing and delivering this Agreement in
reliance upon an exemption from securities registration afforded by the
provisions of Section 4(2), Section 4(6) and/or Regulation D (“Regulation D”) as
promulgated by the United States Securities and Exchange Commission (the “SEC”) under the
Securities Act of 1933, as amended (the “1933 Act,”
collectively the “Offering
Exemption”);

    

    Now,
Therefore, in consideration of the mutual covenants and other agreements
contained in this Agreement, the Company and the Subscribers hereby agree as
follows:

    

    1.  Purchase and Sale of
Units.  Subject to the satisfaction of the terms and conditions
of this Agreement, each Subscriber hereby irrevocably agrees to purchase the
full number of Units in the amount designated on the signature page hereto (the
“Subscription
Amount”) at the Unit Purchase Price, and the Company shall sell such
Units to such Subscribers at the Unit Purchase Price.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.  Escrow Arrangements; Form of
Payment.  Upon execution of this Agreement by the parties and
pursuant to the terms of the escrow agreement, entered into between the Company,
the Placement Agent and Phillips Nizer LLP (the “Escrow Agent”) (the “Escrow Agreement”),
each Subscriber agrees to make the deliveries required of it as set forth herein
and in the Escrow Agreement, and the Company agrees to make the deliveries
required of it as set forth herein and in the Escrow Agreement. The Subscriber
acknowledges and agrees that all subscription amounts will be placed in a
non-interest bearing escrow account pending the Closing.

    

    3.  Terms of the
Securities.

    

    (a)  Each
Warrant shall be in the form attached hereto as Exhibit B, and will
be subject to the terms and conditions contained therein; and

    

    (b)  Each
share of Preferred Stock will be subject to the terms and conditions contained
in the Certificate of Designations in the form attached hereto as Exhibit
C.

    

    4.1  Closing.  At
the closing of the transactions contemplated herein (the “Closing”), the
Subscribers shall purchase, severally and not jointly, and the Company shall
issue and sell, in the aggregate, a maximum of 500 Units.  Each
Subscriber shall purchase from the Company, and the Company shall issue and sell
to each Subscriber, the amount of Units specified on the signature page
hereto.  Upon satisfaction of the conditions set forth in Section 4.2
a closing (the “Closing”) will be
held as soon as practicable, but no later than January 20, 2009.  All
funds held in escrow and not accepted by the Company shall be returned to
Subscribers without interest or deduction.  The Closing shall occur,
from time to time, on the dates that subscriptions have been received and
accepted by the Company and the Placement Agent at the offices of Phillips Nizer
LLP, 666 Fifth Avenue, 28th Floor,
New York, New York 10103, or such other time and/or location as the parties
shall mutually agree.  At each Closing, the conditions of Section 4.2
shall either be satisfied or waived by the appropriate parties. 

    

    4.2    Closing
Conditions.

    

    (a)  Each
Subscriber’s obligations at each Closing are conditioned upon the Company’s
fulfillment (or waiver by the Subscriber in its sole discretion) of each of the
following events as of the date of each such Closing and the Company’s delivery
to such Subscriber and the Placement Agent of:

    

    (i)  this
Agreement duly executed by the Company;

    

    (ii)  the
Registration Rights Agreement duly executed by the Company, the form of which is
attached hereto as Exhibit
D;

    

    (iii)  a
certificate evidencing ownership of a number of shares of Preferred Stock equal
to such Subscriber’s Subscription Amount;

     

    
      
        
        

      

      
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    (iv)  a
Warrant, registered in the name of such Subscriber, pursuant to which such
Subscriber shall have the right to acquire, a number of shares of Common Stock
equal to the product of 1,177 and the Subscriber’s Subscription
Amount;

    

    (v)   a
certificate, signed by the Chief Executive Officer and Chief Financial Officer
of the Company, certifying that the conditions specified in this paragraph have
been fulfilled (or waived in writing) as of the Closing Date;

    

    (vi)  a
certificate, signed by the Secretary or an Assistant Secretary of the Company,
attaching (i) the Certificate of Incorporation and By-Laws of the Company, (ii)
certificates of Good Standing for the state of incorporation and jurisdictions
in which it is qualified to do business; and (iii) resolutions passed by its
Board of Directors to authorize the transactions contemplated hereby, and
certifying that such documents are true and complete copies of the originals and
that such resolutions have not been amended or superseded; and

    

    (vii)  opinion
of counsel to the Company, Phillips Nizer LLP.

    

    (b)  The
Company’s obligations at each Closing are conditioned upon each Subscriber’s
delivery to the Company of the following:

    

    (i)  this
Agreement duly executed by such Subscriber;

    

    (ii)  readily
available funds, deposited and cleared in the escrow account contemplated by the
Escrow Agreement, in an amount sufficient to purchase the Subscription
Amount;

    

    (iii)  an
executed and properly completed Questionnaire; and

    

    (iv)  an
executed and properly completed Registration Rights Agreement.

    

    (c)  The
representations and warranties of the parties set forth in this Agreement shall
be true and correct in all material respects as of each Closing Date as if made
on such date (except that to the extent that any such representation or warranty
relates to a particular date, in which case such representation or warranty
shall be true and correct in all material respects as of that particular date);
and

    

    (d)  At
each Closing Date, there shall have occurred no material adverse change in the
Company’s consolidated business or financial condition since March 31, 2008 as
set forth in the Company’s most recent financial statements included in the
Private Placement Memorandum.

     

    5.  Subscriber’s Representations
and Warranties.  Each Subscriber hereby represents and warrants
as of the date hereof and as of the Closing, with regard to itself
that:

    

    
      
        
        

      

      
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    (a)  Reliance on
Exemptions.  The Subscriber acknowledges that the Offering has
not been reviewed by the SEC or any state agency because it is intended to be a
nonpublic offering exempt from the registration requirements of the 1933 Act and
state securities laws.  The Subscriber understands that the Company is
relying in part upon the truth and accuracy of, and the Subscriber’s compliance
with, the representations, warranties, agreements, acknowledgements and
understandings of the Subscriber set forth herein in order to determine the
availability of such exemptions and the eligibility of the Subscriber to acquire
the Units.

    

    (b)  Information on
Subscriber.  The Subscriber is, and will be at the time of the
exercise of the Warrants, an “accredited investor” as defined in Section
2(15) of the 1933
Act and Rule 501 of Regulation D promulgated thereunder. Such Subscriber is not
required to be registered as a broker-dealer under Section 15 of the 1934 Act,
is experienced in investments and business matters, has previously made
investments of a speculative nature, understands that an investment in the
Securities involves a high degree of risk, has purchased securities of United
States companies in private placements in the past and, with its
representatives, has such knowledge and experience in financial, tax and other
business matters as to enable the Subscriber to utilize the information made
available by the Company to evaluate the merits and risks of and to make an
informed investment decision with respect to the proposed purchase, which
represents a speculative investment.  The Subscriber, if not a natural
person, has the necessary authority to and is duly and legally qualified to
purchase and own the Securities. If the Subscriber is natural person, he or she
has reached the age of majority in the state in which the Subscriber resides,
has adequate means of providing for the Subscriber's current needs and personal
contingencies and is able to bear the risk of such investment for an indefinite
period and to afford a complete loss thereof.  The information set
forth on the signature page hereto and in such Subscriber’s Questionnaire
regarding the Subscriber is accurate.  The sale of the Securities to
the Subscriber as contemplated in this Agreement complies with or is exempt from
the applicable securities legislation of the jurisdiction of the residence of
the Subscriber.

    

    (c)  Investment
Purpose.  At Closing, the Subscriber will purchase the Units
for its own account for investment purposes only and not as a nominee or agent
and not with a view towards or for resale in connection with the distribution of
the Securities.

    

    (d)  Risk of
Involvement.  The Subscriber recognizes that the purchase of
the Units involves a high degree of risk in that:  (i) an investment
in the Company is highly speculative and only investors who can afford the loss
of their entire investment should consider investing in the Company and the
Securities; (ii) transferability of the Securities is limited; and (iii) the
Company may require substantial additional funds to operate its business and
there can be no assurance that the Offering will be completed or that any other
funds will be available to the Company, in addition to all of the other risks
set forth in the Company’s Memorandum.

     

    
      
        
        

      

      
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    (e)  Information.  The
Subscriber acknowledges careful review of:  (i) the Memorandum; (ii)
this Agreement; (iii) all exhibits, schedules and appendices which are part of
the aforementioned documents (collectively, the “Offering Documents”),
and hereby represents that:  (A) the Subscriber has been furnished by
the Company during the course of this transaction with all information regarding
the Company which it has requested; (B) that the Subscriber has been afforded
the opportunity to ask questions of and receive answers from duly authorized
officers of the Company concerning the terms and conditions of the Offering; and
(C) the Subscriber, if it has requested, has been given the opportunity by the
Placement Agent to review the Agency Agreement.

    

    (f)  Compliance with Securities
Act.  The Subscriber understands and agrees that the Securities
are “restricted securities” that have not been registered under the 1933 Act or
any applicable state securities laws, by reason of their issuance in a
transaction that does not require registration under the 1933 Act (based in part
on the accuracy of the representations and warranties of Subscriber contained
herein), and that such Securities must be held indefinitely unless a subsequent
disposition is registered under the 1933 Act or any applicable state securities
laws or is exempt from such registration.

    

    (g)    No
Representations.  The Subscriber hereby represents that, except
as expressly set forth in the Offering Documents, no representations or
warranties have been made to the Subscriber by the Company or any agent,
employee or affiliate of the Company, including the Placement Agent, and in
entering into this transaction the Subscriber is not relying on any information
other than that contained in the Offering Documents and the results of
independent investigation by the Subscriber.  The Subscriber has
conducted its own due diligence of the Company and is not relying on the
Placement Agent’s diligence.

    

    (h)  Transfer or
Resale.  The Subscriber acknowledges that there is no public
market for any of the Company’s securities.  The Subscriber
understands that Rule 144 (the “Rule”) promulgated
under the 1933 Act requires, among other conditions, a one-year holding period
prior to the resale (in limited amounts) of securities of a non-reporting issuer
acquired in a non-public offering without having to satisfy the registration
requirements under the 1933 Act.  The Subscriber understands and
hereby acknowledges that the Company is under no obligation to register the
Common Stock under the 1933 Act, with the exception of certain registration
rights covering the resale of the shares of Common Stock into which the
Preferred Stock are convertible and Warrants are exercisable (collectively, the
“Conversion
Shares”) which were purchased by the Subscriber pursuant to this
Agreement set forth in the Registration Rights Agreement.  The
Subscriber consents that the Company may, if it desires, permit the transfer of
the Securities out of the Subscriber’s name only when the Subscriber’s request
for transfer is accompanied by an opinion of counsel reasonably satisfactory to
the Company that neither the sale nor the proposed transfer results in a
violation of the 1933 Act or any applicable state “blue sky” laws.

    

    (i)  No Hedging
Transactions.  The Subscriber hereby agrees not to engage in
any Hedging Transaction (as defined herein) until such time as the Conversion
Shares, as applicable, have been registered for resale under the 1933 Act or may
otherwise be sold in the public market without an effective registration
statement under the 1933 Act. “Hedging Transaction” means any short sale
(whether or not against the box) or any purchase, sale or grant of any right
(including, without limitation, any put or call option) with respect to any
security (other than a broad-based market basket or index) that includes,
relates to or derives any significant part of its value from the Company’s
Common Stock or any rights, warrants, options or other securities that are
convertible into, or exercisable or exchangeable for, Common Stock.

    

    
      
        
        

      

      
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    (j)  Shares
Legend.  The shares of Preferred Stock issued hereunder shall
bear the following or similar legend:

    

    “NEITHER
THE SHARES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THIS
SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED.  THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO SIGNPATH PHARMA, INC. THAT SUCH REGISTRATION IS NOT
REQUIRED.”

    

    (k)  Warrants
Legend.  The Warrants shall bear the following or similar
legend:

    

    “NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR REASONABLY ACCEPTABLE
TO THE COMPANY TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY.”

     

    (l)  Communication of
Offer.  The offer to sell the Securities was directly
communicated to the Subscriber by the Company or the Placement Agent or any
selling group member.  At no time was the Subscriber presented with or
solicited by any leaflet, newspaper or magazine article, radio or television
advertisement, or any other form of general advertising, or solicited or invited
to attend a promotional meeting otherwise than in connection and concurrently
with such communicated offer. The Subscriber acknowledges that it has a
pre-existing personal or business relationship with either the Company, the
Placement Agent or any of their officers, directors or controlling persons, of a
nature and duration such as would enable a reasonable prudent investor to be
aware of the character, business acumen, and general business and financial
circumstances of the Company and an investment in the Units.

    

    
      
        
        

      

      
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    (m)  Organization;
Authority.  If Subscriber is not a natural person, Subscriber
is an entity duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization with full right, corporate or
partnership power and authority to enter into and to consummate the transactions
contemplated by the Offering and otherwise to carry out its obligations
thereunder.

    

    (n)  Authority;
Enforceability.  This Agreement and other agreements delivered
together with this Agreement or in connection herewith have been duly
authorized, executed and delivered by the Subscriber and are valid and binding
agreements enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights generally and
to general principles of equity; and Subscriber, if not a natural person, has
full power and authority necessary to enter into this Agreement and such other
agreements and to perform its obligations hereunder and under all other
agreements entered into by the Subscriber relating hereto.

    

    (o)  Correctness of
Representations.  Each Subscriber represents that the foregoing
representations and warranties are true and correct as of the date hereof and,
unless a Subscriber otherwise notifies the Company prior to the Closing, shall
remain true and correct as of Closing.  The foregoing representations
and warranties shall survive the Closing Date for a period of three
years.

    

    (p)  No Tax or Legal
Advice.  Such Subscriber understands that nothing in this
Agreement, any other agreement or any other materials presented to such
Subscriber in connection with the purchase and sale of the Units constitutes
legal, tax or investment advice and such information may not be used, for the
purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or
(ii) promoting, marketing or recommending to another party any tax-related
matters addressed herein.  Such Subscriber 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 Units.

    

    (q)  Questionnaire. The
Subscriber has completed the accompanying Questionnaire and has delivered it
herewith and represents and warrants that it is accurate and true in all
respects and that it accurately and completely sets forth the financial
condition of the Subscriber on the date hereof. The Subscriber has no reason to
expect there will be any material adverse change in its financial condition and
will advise the Company of any such changes occurring prior to the closing or
termination of the Offering.

    

    
      
        
        

      

      
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    (r)   Company Discretion.
The Subscriber understands that the Company shall have the right to accept or
reject this subscription in whole or in part.  Unless this
subscription is accepted in whole or in part by the Company prior to the
expiration of the Offering Period (as such term is defined in the Memorandum),
this subscription shall be deemed rejected in whole. The Subscriber acknowledges
that any delivery to it of this Agreement relating to the Units prior to the
determination by the Company of its suitability as a Subscriber shall not
constitute an offer of the Units until such determination of suitability shall
be made, and the Subscriber hereby agrees that it shall promptly return the
Offering Documents to the Company upon request.

    

    (s)  [Intentionally
Left Blank]

    

    (t)  Binding Subscription.
The Subscriber hereby acknowledges and agrees, subject to any applicable state
securities laws that the subscription and application hereunder are irrevocable,
that the Subscriber is not entitled to cancel, terminate or revoke this
Subscription Agreement and that this Subscription Agreement shall survive the
death or disability of the Subscriber and shall be binding upon and inure to the
benefit of the Subscriber and his heirs, executors, administrators, successors,
legal representatives, and assigns. If the Subscriber is more than one person,
the obligations of the Subscriber hereunder shall be joint and several, and the
agreements, representations, warranties, and acknowledgments herein contained
shall be deemed to be made by and be binding upon each such person and his
heirs, executors, administrators, successors, legal representatives, and
assigns.

    

    (u)  FINRA
Member.  The Subscriber acknowledges that if it is an
“associated person” or  Registered Representative of a FINRA member
firm, the Subscriber has given such firm notice required by the FINRA’s Rules of
Fair Practice, receipt of which must be acknowledged by such firm on the
signature page hereof.

    

    
      
        
        

      

      
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    6.  Company Representations and
Warranties.  The Company represents and warrants to each
Subscriber that:

    

    (a)  Due
Incorporation.  The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Delaware
and has the requisite corporate power to own its properties and to carry on its
business as currently being conducted.  The Company, as of the date
hereof, has no subsidiaries. The Company is duly qualified as a foreign
corporation to do business and is in good standing in each jurisdiction where
the nature of the business conducted or property owned by it makes such
qualification necessary, unless the failure to be so qualified or in good
standing, as the case may be, would not have or would not reasonably be expected
to result in (i) a material adverse effect on the legality, validity or
enforceability of this Agreement or any other document in connection with the
Offering, (ii) a material adverse effect on the results of operations, assets,
business or financial condition of the Company, or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely
basis its obligations under this Agreement (any of (i), (ii) or (iii),
constituting a “Material Adverse
Effect”).

    

    (b)  Capitalization; Ownership of
Shares.  The authorized capital stock of the Company consists
of 45,000,000 shares of Common Stock and 5,000,000 shares of Preferred
Stock.  As of the date hereof, (i) 11,365,500 shares of Common Stock
are issued and outstanding, all of which are duly authorized, validly issued,
fully paid and nonassessable and were not issued in violation of any preemptive
rights, and (ii) 1,500 shares of Series A Preferred Stock are issued and
outstanding, all of which are duly authorized, validly issued, fully paid and
nonassessable and were not issued in violation of any preemptive
rights.  Except for the transactions contemplated hereby and as
described in the Memorandum, there are no outstanding options, warrants,
convertible securities or other rights, agreements, arrangements or commitments
relating to the Common Stock or obligating the Company to issue or sell any
shares of Common Stock, or any other interest in, the Company. All outstanding
shares of capital stock of the Company were issued, sold and delivered in
material compliance with all applicable Federal and state securities laws and
the similar laws of other foreign jurisdictions as may be
applicable.  Except for the holders of the Bridge Notes (as defined in
the Memorandum), no person has any right of first refusal, preemptive right,
right of participation, or any similar right to participate in the transactions
contemplated by this Offering or otherwise. The issue and sale of the Units
will not obligate the Company to issue shares of Common Stock or other
securities to any person (other than the Subscribers) and will not result in a
right of any holder of Company securities to adjust the exercise, conversion,
exchange or reset price under such securities.

    

    (c)  Authority;
Enforceability.  This Agreement and the Securities have been
duly authorized, executed and delivered by the Company and are valid and binding
agreements enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights generally and
to general principles of equity, and the Company has full corporate power and
authority necessary to enter into this Agreement, the Warrants, the Escrow
Agreement, the Registration Rights Agreement, and such other agreements and to
perform its obligations hereunder and under all other agreements entered into by
the Company relating hereto. All corporate action on the part of the Company by
its officers, directors and stockholders necessary for the authorization,
execution and delivery of, and the performance by the Company of its obligations
under this Agreement and the other agreements entered into as contemplated by
this Agreement has been taken. 

    

    
      
        
        

      

      
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    (d)  Consents.  No
consent, approval, authorization or order of any court, governmental agency or
body or arbitrator having jurisdiction over the Company, or over any of its
affiliates, the Financial Industry Regulatory Authority (FINRA), Nasdaq, the OTC
Bulletin Board nor the Company’s stockholders is required for execution of this
Agreement and all other agreements entered into by the Company relating thereto,
including, without limitation, the issuance and sale of the Securities, and the
performance of the Company’s obligations hereunder and under all such other
agreements.

    

    (e)  No Violation or
Conflict.  Assuming the representations and warranties of the
Subscribers in Section 5 are true and correct, neither the execution and
delivery of this Agreement nor the issuance and sale of the Securities nor the
performance of the Company’s obligations under this Agreement and all other
agreements entered into by the Company relating thereto by the Company
will:

    

    (i)  violate,
conflict with, result in a material breach of, or constitute a default (or an
event which with the giving of notice or the lapse of time or both would be
reasonably likely to constitute a default) or give to others any rights of
termination, amendment, acceleration or cancellation under (A) the certificate
of incorporation or bylaws of the Company, (B) any decree, judgment, order, law,
treaty, rule, regulation or determination applicable to the Company of any
court, governmental agency or body, or arbitrator having jurisdiction over the
Company or any of its affiliates (including federal and state securities laws
and regulations) or over the properties or assets of the Company or any of its
affiliates, (C) the terms of any bond, debenture, note or any other evidence of
indebtedness, or any agreement, stock option or other similar plan, indenture,
lease, mortgage, deed of trust or other instrument to which the Company or any
of its affiliates is a party, by which the Company or any of its affiliates is
bound or affected, or to which any of the properties or assets of the Company or
any of its affiliates is subject, or (D) the terms of any “lock-up” or similar
provision of any underwriting or similar agreement to which the Company, or any
of its affiliates is a party except the violation, conflict, breach, or default
of which would not have a Material Adverse Effect on the Company;
or

    

    (ii)  result
in the creation or imposition of any lien, charge or encumbrance upon the
securities or any of the assets of the Company or any of its
affiliates.

    

    (f)  The
Securities.  The Securities upon issuance:

     

    
      
        
        

      

      
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    (i)  are,
or will be, free and clear of any security interests, liens, claims or other
encumbrances, subject to restrictions upon transfer under the 1933 Act and any
applicable state securities laws;

    

    (ii)  have
been, or will be, duly and validly authorized and on the date of issuance will
be duly and validly issued, fully paid and nonassessable (and if eventually
registered pursuant to the 1933 Act, and resold pursuant to an effective
registration statement will be free trading and unrestricted, provided that each
Subscriber complies with the prospectus delivery requirements of the 1933 Act
and any state securities laws);

    

    (iii)  will
not have been issued or sold in violation of any preemptive or other similar
rights of the holders of any securities of the Company; and

    

    (iv)  will
not subject the holders thereof to personal liability by reason of being such
holders.

    

    (g)  Litigation.  There
is no pending or, to the knowledge of the Company, threatened action, suit,
proceeding inquiry, notice of violation, or investigation before any court,
governmental or administrative agency or regulatory body (federal, state,
county, local or foreign), or arbitrator having jurisdiction over the Company,
or any of its affiliates that would challenge the legality, validity or
enforceability of this Agreement and/or the Offering, or otherwise affect the
execution by the Company or the performance by the Company of its obligations
under this Agreement, and all other agreements entered into by the Company
relating hereto.  Except as disclosed in the Offering Documents, there
is no pending or, to the knowledge of the Company, threatened action, suit,
proceeding or investigation before any court, governmental agency or body, or
arbitrator having jurisdiction over the Company, or any of its affiliates which
litigation if adversely determined would have a Material Adverse Effect on the
Company.

    

    (h)  Defaults;
Permits.  The Company is not in violation of its Certificate of
Incorporation or By-Laws.  The Company is (i) not in default under or
in violation of any other material agreement or instrument to which it is a
party or by which it or any of its properties are bound or affected, which
default or violation would have a Material Adverse Effect on the Company, (ii)
not in default with respect to any order of any court, arbitrator or
governmental body or subject to or party to any order of any court or
governmental authority arising out of any action, suit or proceeding under any
statute or other law respecting antitrust, monopoly, restraint of trade, unfair
competition or similar matters, or (iii) to its knowledge in violation of any
statute, rule or regulation of any governmental authority which violation would
have a Material Adverse Effect on the Company. The Company possesses all
material certificates, authorizations and permits issued by the appropriate
federal, state or foreign regulatory authorities necessary to conduct their
respective businesses other than where the failure to possess such certificates,
authorizations or permits, individually or in the aggregate, has not had and
would not reasonably be expected to have a Material Adverse Effect. The Company
has not received any notice or otherwise become aware of any proceedings,
inquiries or investigations relating to the revocation or modification of any
such certificate, authorization or permit.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (i)  No General
Solicitation.  Neither the Company, nor any of its affiliates,
nor to the Company’s knowledge, any person acting on its or their behalf, has,
directly or indirectly made any offers or sales of any security or solicited any
offers to buy any security that would cause the offer of the Securities pursuant
to this Agreement to be integrated with prior offerings by the Company for
purposes of the 1933 Act or any applicable stockholder approval provisions.
Neither the Company nor any of its affiliates will take any action or steps that
would cause the offer of the Securities to be integrated with other offerings if
such integration would eliminate the Offering Exemption. Neither the Company nor
any of its affiliates, nor to the Company’s knowledge, any person acting on its
or their behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D) in connection with the offer or
sale of the Units.

    

    (j)  Disclosure.  None
of the representations and warranties of the Company appearing in this Agreement
nor any information appearing in any of the Offering Documents, when considered
together as a whole, contains, or on the Closing will contain any untrue
statement of a material fact or omits, or on the Closing will omit, to state any
material fact required to be stated herein or therein in order for the
statements herein or therein, in light of the circumstances under which they
were made, not to be misleading.

    

    (k)  No Undisclosed Liabilities
or Events.  The Company has no liabilities or obligations which
are material, individually or in the aggregate, which are not disclosed in the
Offering Documents, other than those incurred in the ordinary course of the
Company’s businesses since March 31, 2008. There has been no event or
circumstance that has occurred or exists with respect to the Company or its
businesses, properties, operations or financial condition, that, under
applicable law, rule or regulation, requires disclosure but which has not been
so publicly announced or disclosed in the Offering Documents.

    

    (l)  Intellectual
Property.  The Company owns, free and clear of claims or rights
of any other person, with full right to use, sell, license, sublicense, dispose
of, and bring actions for infringement of, or has acquired licenses or other
rights to use, all intellectual property necessary for the conduct of its
business as presently conducted (other than with respect to “off-the-shelf”
software which is generally commercially available and open source software
which may be subject to one or more “general public” licenses).  The
business of the Company as presently conducted does not, to the Company’s
knowledge, infringe or conflict with any patent, trademark, copyright, or trade
secret rights of any third parties or any other intellectual property of any
third parties. The Company has not received written notice from any third party
asserting that any intellectual property owned or licensed by the Company, or
which the Company otherwise has the right to use, is invalid or unenforceable by
the Company and, to the Company’s knowledge, there is no valid basis for any
such claim (whether or not pending or threatened).  No claim is
pending or, to the Company’s knowledge, threatened against the Company nor has
the Company received any written notice or other written claim from any person
asserting that any of the Company’s present or contemplated activities infringe
or may infringe in any material respect any intellectual property of such
person, and the Company is not aware of any infringement by any other Person of
any material rights of the Company under any intellectual property rights. The
Company has taken all steps required in accordance with commercially reasonable
business practice to establish and preserve its respective ownership in its
intellectual property and to keep confidential all material technical
information developed by or belonging to the Company which has not been patented
or copyrighted.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    (m)  Investment Company
Status.  The Company is not, and immediately after receipt of
the Final Closing will not be, an “investment company”
or an entity “controlled” by an
“investment
company” within the meaning of the Investment Company Act of 1940, as
amended (the “Investment Company
Act”), and the Company shall conduct its business in a manner so that it
will not become subject to the Investment Company Act.

    

    (n)  Taxes.   The
Company (i) has prepared in good faith and duly and timely filed all tax returns
required to be filed by it or is on a current extension and such returns are
complete and accurate in all material respects and (ii) has paid all taxes
required to have been paid by it, except for taxes which it reasonably disputes
in good faith or the failure of which to pay has not had or would not reasonably
be expected to have a Material Adverse Effect. The Company has no any liability
with respect to accrued taxes in excess of the amounts that are described as
accrued in the most recent financial statements included in the Offering
Documents.

    

    (o)  Solvency.  The
Company has no knowledge of any facts or circumstances which lead it to believe
that it will be required to file for reorganization or liquidation under the
bankruptcy or reorganization laws of any jurisdiction and has no present
intention to so file.

    

    (p)  Transactions with Interested
Persons. Except as described in the Offering Memorandum,  no
officer, director, employee or affiliate of the Company is or has taken any
steps to become a party to any transaction with the Company (other than for
services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the
knowledge of the Company, any entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee or
partner.

    

    (q)  No Other
Agreements.  The Company has not, directly or indirectly,
entered into any agreement with or granted any right to any Subscriber relating
to the terms or conditions of the transactions contemplated by this Agreement or
the other Offering Documents except as expressly set forth therein.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (r)  Correctness of
Representations.  The Company represents that the foregoing
representations and warranties are true and correct as of the date hereof in all
material respects.  The foregoing representations and warranties shall
survive until one year after the Closing Date.

    

    7.  Regulation D
Offering.  This Offering is being made pursuant to the
exemption from the registration provisions of the 1933 Act afforded by Section
4(2) or Section 4(6) of the 1933 Act and/or Rule 506 of Regulation D promulgated
thereunder.

    

    8.  Reissuance of
Securities.  The Company agrees to reissue certificates
representing the Conversion Shares without the legends set forth in Sections
5(j) and 5(k) above, (a) at such time as the holder thereof is permitted to
dispose of the Securities without volume or manner of sale restrictions pursuant
to Rule 144 under the 1933 Act in the opinion of counsel reasonably satisfactory
to the Company, or (b) upon resale subject to an effective registration
statement after the resale of the shares of Common Stock underlying the
Preferred Stock and the Warrants is registered under the 1933
Act.  The Company agrees to cooperate with each Subscriber in
connection with all resales pursuant to Rule 144 and to provide legal opinions
at the Company’s expense necessary to allow such resales provided the Company
and its counsel receive reasonably requested written representations from each
Subscriber and its selling broker, if any.

    

    9.  FINRA Member Firm
Compensation.  The Company on the one hand, and each Subscriber
on the other hand, agree to indemnify the other against and hold the other
harmless from any and all liabilities to any persons claiming brokerage
commissions other than Meyers Associates L.P. on account of services purported
to have been rendered on behalf of the indemnifying party in connection with
this Agreement or the transactions contemplated hereby and arising out of such
party’s actions.  As set forth in the Memorandum, the Company shall
pay the Placement Agent a sales commission of 10% of the gross proceeds from the
sale of Units plus a 3% non-accountable expense allowance.  The
Placement Agent will also receive warrants to purchase 15% of the Units sold in
the Offering.  The Company will pay the Placement Agent a cash fee
equal to 10% of its total cash proceeds received from the exercise of Warrants
solicited by the Placement Agent.

    

    10.  Covenants of the
Company.  At all times shares of Preferred Stock remain
outstanding, the Company covenants and agrees with the Subscribers as
follows:

    

    (a)  Reservation of Common
Stock.  The Company undertakes to reserve from its authorized
but unissued common stock, at all times Warrants and shares of Preferred Stock
remain outstanding, a number of Conversion Shares equal to the amount of Common
Stock issuable upon exercise of the Warrants and the conversion of the Preferred
Stock.

    

    (b)  Confidentiality.  Subject
to being named in the Company’s SEC filings as contemplated by the Registration
Rights Agreement, the Company agrees that it will not disclose publicly or
privately the identity of any Subscriber unless expressly agreed to in writing
by that Subscriber or only to the extent required by law.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (c)  Reporting
Requirements.  The Company will (i) cause its Common Stock to
become registered under Section 12(b) or 12(g) of the 1934 Act following the
completion of the Offering, (ii) comply in all respects with its reporting and
filing obligations under the 1934 Act, (iii) comply with all reporting
requirements that are applicable to an issuer with a class of shares registered
pursuant to Section 15(d) of the 1934 Act, as applicable, and (iv) comply with
all requirements related to any registration statement filed pursuant to this
Agreement.  The Company will use its best efforts not to take any
action or file any document (whether or not permitted by the 1933 Act or the
1934 Act or the rules thereunder) to terminate or suspend such registration or
to terminate or suspend its reporting and filing obligations under said
acts.  Until the earlier of the resale of the Shares, and shares of
Common Stock underlying the Shares and the Warrants by each Subscriber or at
least two (2) years after the Shares have been converted and the Warrants have
been exercised, the Company will use reasonable efforts to continue the listing
or quotation of the Common Stock on the Principal Market and will comply in all
respects with the Company’s reporting, filing and other obligations under the
bylaws or rules of the Principal Market.

    

    (d)  Stop
Orders.  Following effectiveness of the Registration Statement,
the Company will advise the Subscribers, promptly after it receives notice of
issuance by the SEC, any state securities commission or any other regulatory
authority of any stop order or of any order preventing or suspending any
offering of any securities of the Company, or of the suspension of the
qualification of the Common Stock of the Company for offering or sale in any
jurisdiction, or the initiation of any proceeding for any such
purpose.

    

    (e)  Use of
Proceeds.  The proceeds received by the Company in the Offering
will only be used by the Company for working capital and research and
development towards filing an IND to commence clinical trails.  The
Company is debt free as of the date hereof and no proceeds shall be used for the
repayment of debt.

    

    (f)  Taxes.  The
Company will promptly pay and discharge, or cause to be paid and discharged,
when due and payable, all material lawful taxes, assessments and governmental
charges or levies imposed upon the income, profits, property or business of the
Company; provided, however, that any
such tax, assessment, charge or levy need not be paid if the validity thereof
shall currently be contested in good faith by appropriate proceedings and if the
Company shall have set aside on its books adequate reserves with respect
thereto; and provided, further, that the
Company will pay all such material taxes, assessments, charges or levies
forthwith upon the commencement of proceedings to foreclose any lien which may
have attached as security therefor.

    

    (g)  Insurance.  The
Company is or will be insured by insurers of recognized financial responsibility
against such material losses and risks and in such amounts as are prudent and
customary in the businesses in which the Company is engaged. The Company
has no current reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its
business.  The Company will keep its assets which are of an insurable
character insured by financially sound and reputable insurers against loss or
damage by fire, explosion and other risks customarily insured against by
companies in the Company’s line of business, in amounts sufficient to prevent
the Company from becoming a co-insurer and not in any event less than 100% of
the insurable value of the property insured; and the Company will maintain, with
financially sound and reputable insurers, insurance against other hazards and
risks and liability to persons and property to the extent and in the manner
customary for companies in similar businesses similarly situated and to the
extent available on commercially reasonable terms.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (h)  Books and
Records.  The Company will keep true records and books of
account in which full, true and correct entries will be made of all dealings or
transactions in relation to its business and affairs in accordance with
generally accepted accounting principles applied on a consistent
basis.

    

    (i)  Governmental
Authorities.  The Company shall duly observe and conform in all
material respects to all valid requirements of governmental authorities relating
to the conduct of its business or to its properties or assets.

    

    (j)  Properties.  The
Company will keep its properties in good repair, working order and condition,
reasonable wear and tear excepted, and from time to time make all needful and
proper repairs, renewals, replacements, additions and improvements thereto; and
the Company will at all times comply with each provision of all leases to which
it is a party or under which it occupies property if the breach of such material
provision could reasonably be expected to have a Material Adverse
Effect.

    

    11.  Covenants of the Company and
Subscriber Regarding Indemnification.

    

    (a)  The
Company agrees to indemnify, hold harmless, reimburse and defend the
Subscribers, the Subscribers’ officers, directors, agents, affiliates, control
persons, and principal shareholders, against any claim, cost, expense,
liability, obligation, loss or damage (including reasonable legal fees) of any
nature, incurred by or imposed upon the Subscriber or any such person which
results, arises out of or is based upon (i) any material misrepresentation by
Company or breach of any warranty by Company in this Agreement or in any
Exhibits or Schedules attached hereto, or other agreement delivered pursuant
hereto; or (ii) after any applicable notice and/or cure periods, any breach or
default in performance by the Company of any covenant or undertaking to be
performed by the Company hereunder, or any other agreement entered into by the
Company and Subscriber relating hereto.

    

    (b)  Each
Subscriber agrees to indemnify, hold harmless, reimburse and defend the Company
and each of the Company’s officers, directors, agents, affiliates, control
persons, and principal shareholders against any claim, cost, expense, liability,
obligation, loss or damage (including reasonable legal fees) of any nature,
incurred by or imposed upon the Company or any such person which results, arises
out of or is based upon (i) any material misrepresentation by such Subscriber in
this Agreement or in any Exhibits or Schedules attached hereto, or other
agreement delivered pursuant hereto; or (ii) after any applicable notice and/or
cure periods, any breach or default in performance by such Subscriber of any
covenant or undertaking to be performed by such Subscriber hereunder, or any
other agreement entered into by the Company and Subscribers relating
hereto.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    12.  Miscellaneous.

    

    (a)  Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be either (i) personally served, (ii) deposited in the
mail, registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, electronic mail, or facsimile, addressed as set
forth below or to such other address as such party shall have specified most
recently by written notice.  Any notice or other communication
required or permitted to be given hereunder shall be deemed effective (a) upon
hand delivery or delivery by facsimile, with accurate confirmation generated by
the transmitting facsimile machine, at the address or number designated below
(if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours where such
notice is to be received), (b) on the second business day following the date of
mailing by express courier service, fully prepaid, addressed to such address, or
upon actual receipt of such mailing, or (c) upon acknowledgment of by the
recipient of receipt by electronic mail, whichever shall first
occur.  The addresses for such communications shall be:

    

    
      
        	
                (i)
      if to the Company, to:

              	
                SignPath
      Pharma, Inc.

              
	 
      	
                1375
      California Road

              
	 
      	
                Quakertown,
      Pennsylvania 18951 

              
	 
      	
                Attention:
      Dr. Lawrence Helson

              
	 
      	
                Tel:
      (267) 772-0107

              
	 
      	
                Email:
      lhelson@signpathpharma.com

              
	 
      	 
      
	
                With
      a copy to:

              	
                Phillips
      Nizer LLP

              
	 
      	
                666
      Fifth Avenue

              
	 
      	
                New
      York, N.Y.  10103

              
	 
      	
                Attention:  Elliot
      H. Lutzker, Esq.

              
	 
      	
                Email:
      elutzker@phillipsnizer.com

              
	 
      	
                Fax:
      (212) 262-5152

              
	 
      	 
      
	
                (ii)
      if to the Subscribers,

              	
                to
      the address and facsimile number indicated on the signature pages
      hereto

              
	 
      	 
      
	
                With
      a copy to:

              	
                Meyers
      Associates, L.P.

              
	 
      	
                45
      Broadway, 2nd
      Floor

              
	 
      	
                New
      York, N.Y.  10006

              
	 
      	
                Tel:  (212)
      742-4200

              
	 
      	
                Email:
      rkhan@meyersassociateslp.com

              
	 
      	
                Fax:
      (212) 742-4222

              

      

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

       

    

    (b)  Entire
Agreement.  This Agreement and other documents delivered in
connection herewith represent the entire agreement between the parties hereto
with respect to the subject matter hereof and may be amended only by a writing
executed by all parties.  Neither the Company nor the Subscribers have
relied on any representations not contained or referred to in this Agreement and
the documents delivered herewith, except as contained in the
Reports.

    

    (c)  Assignment.  No
right or obligation of any party may be assigned by that party without the prior
written consent of all other parties.  This Agreement will be binding
on the successors and assigns of all parties hereto.

     

    (d)  Counterparts.  This
Agreement may be executed by facsimile transmission, and in counterparts, all of
which together will be deemed one original.

    

    (e)  Law Governing this
Agreement.  This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware without regard to
principles of conflicts of laws.  All actions arising out of or
relating to this Agreement shall be heard and determined exclusively in any New
York federal court sitting in the Borough of Manhattan of The City of New York;
provided, however, that if such
federal court does not have jurisdiction over such action, such action shall be
heard and determined exclusively in any New York state court sitting in the
Borough of Manhattan of The City of New York.  Consistent with the
preceding sentence, the parties hereto hereby (a) submit to the exclusive
jurisdiction of any federal or state court sitting in the Borough of Manhattan
of The City of New York for the purpose of any action arising out of or relating
to this Agreement brought by any party hereto and (b) irrevocably waive,
and agree not to assert by way of motion, defense, or otherwise, in any such
action, any claim that it is not subject personally to the jurisdiction of the
above-named courts, that its property is exempt or immune from attachment or
execution, that the action is brought in an inconvenient forum, that the venue
of the action is improper, or that this Agreement or the transactions
contemplated by this Agreement may not be enforced in or by any of the
above-named courts.

    

    (f)  Waiver of Jury
Trial. 
EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.  EACH OF THE PARTIES HERETO HEREBY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT,
AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION 12(F).

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (g)  Severability.  In
the event that any provision of this Agreement or any other agreement delivered
in connection herewith is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed inoperative to the extent
that it may conflict therewith and shall be deemed modified to conform with such
statute or rule of law.  Any such provision which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of
any other provision of any agreement.

    

    (g)  Headings.  All
headings contained herein are inserted only for convenience and ease of
reference and are not to be considered in the construction or interpretation of
any provision of this Agreement.

    

    

    [Signature
page to follow]

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    SIGNATURE PAGE TO
SUBSCRIPTION AGREEMENT

    

    In
Witness Whereof, the parties have entered into this Agreement as of the
date first written above.

    

    
      	 
      	
              SignPath
      Pharma, Inc.,

            	 
      
	 
      	
              a
      Delaware corporation

            	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	  
      	 
      
	 
      	 
      	
              Dr.
      Lawrence Helson

            	 
      
	 
      	 
      	
              Chief
      Executive Officer

            	 
      

    

    

    

    Name of
Subscriber:  ______________________________________________________

     

    Name of
Authorized Signatory (if different from
Subscriber):______________________

     

    Title of
Authorized Signatory:
_______________________________________________

     

    Signature of Authorized Signatory or
Subscriber:________________________________

     

    EIN or
Social Security Number:
_____________________________________________

    

    Email
Address of
Subscriber:________________________________________________

     

    Facsimile
Number of Subscriber:_____________________________________________

     

     

    Address
for Notice to Subscriber:

    

    

    

    

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

    

     

    

    

    Subscription
Amount: $____________

    

    Units:  ______________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    LIST OF EXHIBITS AND
SCHEDULES

    

    

    
      
        	
                Exhibit
      A

              	 	
                Form
      of Escrow Agreement

              
	 
      	 	 
      
	
                Exhibit
      B

              	 	
                Form
      of Warrant

              
	 
      	 	 
      
	
                Exhibit
      C

              	 	
                Form
      of Certificate of Designations

              
	 
      	 	 
      
	
                Exhibit
      D

              	 	
                Form
      of Registration Rights Agreement

              
	 
      	 	 
      
	
                Exhibit
      E

              	 	
                Private
      Offering Memorandum dated May 28,
2008EXHIBIT
10.1

    

    EMPLOYMENT
AGREEMENT

    

    AGREEMENT
made as of the 1st day of
July, 2007 by and between Lawrence Helson, MD (hereinafter referred to as the
“Employee”) and SignPath Pharma, Inc., a Delaware Corporation.

    

    WITNESSETH:

    

    WHEREAS,
SignPath Pharma, Inc. (the “Company”) is engaged in the business of drug
development; and

    

    WHEREAS,
the Company desires to employ the Employee for the purpose of securing for the
Company the experience, ability and services of the Employee; and

    

    WHEREAS,
the Employee desires to be employed by the Company pursuant to the terms and
conditions herein set forth, superseding all prior oral and written employment
agreements and term sheets and letters between the Company, its subsidiaries
and/or predecessors and Employee.

    

    NOW,
THEREFORE, it is mutually agreed by and between the parties hereto as
follows:

    

    ARTICLE
I

    DEFINITIONS

    

    1.1  Accrued
Compensation.  “Accrued Compensation” shall mean an amount
which shall include all amounts earned or accrued through the “Termination Date”
(as defined below) but not paid as of the Termination Date, including (i) Base
Salary,  (ii) reimbursement for business expenses incurred by the
Employee on behalf of the Company, pursuant to the Company's expense
reimbursement policy in effect at such time, (iii) expense allowance, (iv)
vacation pay per Company Policy, and (v) bonuses and incentive compensation
earned and awarded prior to the Termination Date.

    

    1.2  Cause. “Cause” shall mean:
(i) willful disobedience by the Employee of a reasonable, material and lawful
instruction of the Board of Directors of the Company consistent with the duties
and functions of Employee’s position; (ii) conviction of the Employee of any
misdemeanor involving fraud or embezzlement or similar crime, or any felony;
(iii) fraud, gross negligence or willful misconduct in the performance of any
material duties to the Company; or (iv) excessive absences from work, other than
for illness or Disability; provided that the Company shall not have the right to
terminate the employment of Employee pursuant to the foregoing clauses (i),
(iii) or (iv) above unless written notice specifying such breach shall have been
given to the Employee and, in the case of breach which is capable of being
cured, the Employee shall have failed to cure such breach within thirty (30)
days after his receipt of such notice.

    

    1.3  Change in
Control.  “Change in Control” shall mean any of the following
events:

    

    a.  (i)
An acquisition (other than directly from the Company) of any voting securities
of the Company (the “Voting Securities”) by any “Person” (as the term person is
used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of
1934, as amended (the “1934 Act”)) immediately after which such Person has
“Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the
1934 Act) of forty percent (40%) or more of the combined voting power of the
Company’s then outstanding Voting Securities; provided, however, that in
determining whether a Change in Control has occurred, Voting Securities which
are acquired in a “Non-Control Acquisition” (as defined below) shall not
constitute an acquisition which would cause a Change in Control. A “Non-Control
Acquisition” shall mean an acquisition by (1) an employee benefit plan (or a
trust forming a part thereof) maintained by (x) the Company or (y) any
corporation or other Person of which a majority of its voting power or its
equity

    securities
or equity interest is owned directly or indirectly by the Company (a
“Subsidiary”), or (2) the Company or any Subsidiary.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii)  Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because a
Person (the “Subject Person”) gained Beneficial Ownership of more than the
permitted amount of the outstanding Voting Securities as a result of the
acquisition of Voting Securities by the Company which, by reducing the number of
Voting Securities outstanding, increases the proportional number of shares
Beneficially Owned by the Subject Person, provided that if a Change in Control
would occur (but for the operation of this sentence) as a result of the
acquisition of Voting Securities by the Company, and after such share
acquisition by the Company, the Subject Person becomes the Beneficial Owner of
any additional Voting Securities which increases the percentage of the then
outstanding Voting Securities Beneficially Owned by the Subject Person, then a
Change in Control shall occur.

     

    b.  The
individuals who, as of the date this Agreement is approved by the Board, are
members of the Board (the “Incumbent Board”), cease for any reason to constitute
at least two-thirds of the Board; provided, however, that if the election, or
nomination for election by the Company’s stockholders, of any new director was
approved by a vote of at least two-thirds of the Incumbent Board, such new
director shall, for purposes of this Agreement, be considered and defined as a
member of the Incumbent Board; and provided, further, that no individual shall
be considered a member of the Incumbent Board if such individual initially
assumed office as a result of either an actual “Election Contest” (as described
in Rule 14a-11 promulgated under the 1934 Act) or other solicitation of proxies
or consents by or on behalf of a Person other than the Board (a “Proxy
Contest”); or

     

    
      c.  Approval
by stockholders of the Company of:

    

     

    (i)  A
merger, consolidation or reorganization involving the Company, unless: (1) the
stockholders of the Company, immediately before such merger, consolidation or
reorganization, own, directly or indirectly immediately following such merger,
consolidation or reorganization, at least sixty percent (60%) of the combined
voting power of the outstanding voting securities of the corporation resulting
from such merger or consolidation or reorganization (the “Surviving
Corporation”) in substantially the same proportion as their ownership of the
Voting Securities immediately before such merger, consolidation or
reorganization, (2) the individuals who were members of the Incumbent Board
immediately prior to the execution of the agreement providing for such merger,
consolidation or reorganization constitute at least two-thirds of the members of
the board of directors of the Surviving Corporation, and (3) no Person (other
than the Company, any Subsidiary, any employee benefit plan (or any trust
forming a part thereof) maintained by the Company, the Surviving Corporation or
any Subsidiary) becomes Beneficial Owner of twenty percent (20%) or more of the
combined voting power of the Surviving Corporation’s then outstanding voting
securities as a result of such merger, consolidation or reorganization, a
transaction described in clauses (1) through (3) shall herein be referred to as
a “Non-Control Transaction”; or

     

    (ii)   An
agreement for the sale or other disposition of all or substantially all of the
assets of the Company, to any Person, other than a transfer to a Subsidiary, in
one transaction or a series of related transactions.

     

    (iii)  The
stockholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company.

     

    d.  Notwithstanding
anything contained in this Agreement to the contrary, if the Employee’s
employment is terminated prior to a Change in Control and the Employee
reasonably demonstrates that such termination (i) was at the request of a third
party who has indicated an intention or taken steps reasonably calculated to
effect a Change in Control (a “Third Party”) or (ii) otherwise occurred in
connection with, or in anticipation of, a Change in Control, then for all
purposes of this Agreement, the date of a Change in Control with respect to the
Employee shall mean the date immediately prior to the date of such termination
of the Employee’s employment.

     

    
      
        
        

      

      
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    1.4  Continuation
Benefits.    “Continuation Benefits” shall be the
continuation of the Benefits, as defined in Section 5.1, for the period from the
Termination Date to either (i) the later of the Expiration Date, or the end of
the month in which the one-year anniversary of the Termination Date occurs, or
(ii) such other period as specifically stated by this Agreement (the
“Continuation Period”), at the Company's expense, less any normal payroll
deductions, on behalf of the Employee and his dependents; provided, however, if
any of the Benefits required to be provided by the Company during the
Continuation Period under the Company’s benefit plans are, pursuant to the terms
of such plans, not available to non-employees of the Company, the Company, at
its sole cost and expense, less any normal payroll deductions, shall be required
to provide such benefits as shall be reasonably available and substantially
similar to the benefits provided to employees of the Company. The Company’s
obligation hereunder with respect to the foregoing benefits shall also be
limited to the extent that if the Employee obtains such benefits pursuant to a
subsequent employer's benefit plan, the Company may reduce the coverage of any
benefits it is required to provide the Employee hereunder as long as the
aggregate coverage and benefits of the combined benefit plans is no less
favorable to the Employee than the coverage and benefits required to be provided
hereunder. This definition of Continuation Benefits shall not be interpreted so
as to limit any benefits to which the Employee, his dependents or beneficiaries
may be entitled under any of the Company's employee benefit plans, programs or
practices following the Employee's termination of employment, including, without
limitation, retiree medical and life insurance benefits.

    

    1.5  Disability. “Disability”
shall mean a physical or mental infirmity which impairs the Employee's ability
to substantially perform his duties with the Company for a period of three
consecutive months, and the Employee has not returned to his full time
employment prior to the Termination Date as stated in the “Notice of
Termination” (as defined below).

    

    1.6  Good Reason. “Good Reason”
shall mean without the written consent of the Employee: (A) a material breach of
any provision of this Agreement by the Company; (B) failure by the Company to
pay when due any compensation to the Employee; (C) a reduction in the Employee’s
Base Salary; (D) failure by the Company to maintain the Employee in the
positions referred to in Section 2.1 of this Agreement; (E) assignment to the
Employee of any duties materially and adversely inconsistent with the Employee’s
positions, authority, duties, responsibilities, powers, functions, reporting
relationship or title as contemplated by Section 2.1 of this Agreement or any
other action by the Company that results in a material diminution of such
positions, authority, duties, responsibilities, powers, functions, reporting
relationship or title; (F) relocation of the principal office of the Company or
the Employee’s principal place of employment to a location outside a 60 (sixty)
mile radius of the present location in New York City, New York, without the
Employee’s written consent; or (G) a Change in Control, provided the event on
which the Change of Control is predicated occurs within 120 days of the service
of the Notice of Termination by the Employee, it being understood that Employee
shall have the right to terminate his employment under this Section 1.6 (G) for
any reason or no reason within such 120 day period; and provided further,
however, that the Employee agrees not to terminate his employment for Good
Reason pursuant to clauses (A) through (F) unless (a) the Employee has given the
Company at least 30 days’ prior written notice of his intent to terminate his
employment for Good Reason, which notice shall specify the facts and
circumstances constituting Good Reason; and (b) the Company has not remedied
such facts and circumstances constituting Good Reason to the reasonable and good
faith satisfaction of the Employee within a 30-day period after receipt of such
notice.

     

    
      
        
        

      

      
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    1.7  Notice of
Termination.  “Notice of Termination” shall mean a written
notice from the Company, or the Employee, of termination of the Employee’s
employment which indicates the specific termination provision in this Agreement
relied upon, if any, and which sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Employee's
employment under the provision so indicated.

    

    1.8  Severance
Payment.  “Severance Payment” shall mean an amount equal to six
months of the greater of (A) the Employee's Base Salary in effect on the
Termination Date and (B) the highest Base Salary in effect at any time during
the ninety (90) day period prior to the Termination Date. The Severance Payment
shall be payable as provided in Section 9.  For purposes of computing
the Severance Payment, Base Salary shall include any automatic increases to Base
Salary to which the Employee would have been entitled had this Agreement not
been terminated.

    

    1.9  Termination Date. Termination
Date shall mean (i) in the case of the Employee’s death, his date of death; (ii)
in the case of Good Reason, 30 days from the date the Notice of Termination is
given to the Company, provided the Company has not remedied such facts and
circumstances constituting Good Reason to the reasonable and good faith
satisfaction of the Employee; (iii) in the case of termination of employment on
or after the Expiration Date, the last day of employment; and (iv) in all other
cases, the date specified in the Notice of Termination; provided, however, if
the Employee's employment is terminated by the Company for any reason except
Cause, the date specified in the Notice of Termination shall be at least 30 days
from the date the Notice of Termination is given to the Employee, and provided
further that in the case of Disability, the Employee shall not have returned to
the full-time performance of his duties during such period of at least 30
days.

    

    ARTICLE
II

    EMPLOYMENT

    

    2.1  Subject
to and upon the terms and conditions of this Agreement, the Company hereby
agrees to employ the Employee, and the Employee hereby accepts such employment
in his capacity as President and Chief Executive Officer.  The Company
shall nominate Employee, and use its best efforts to have Employee elected to
the Board of Directors of the Company (the “Board”) throughout the term of this
Agreement. The Employee agrees to resign from the Board upon the termination of
employment for any reason.

    

    ARTICLE
III

    DUTIES

    

    3.1  The
Employee shall, during the term of his employment with the Company, and subject
to the direction and control of the Board, report directly to the Board and
shall exercise such authority, perform such executive duties and functions and
discharge such responsibilities as are reasonably associated with his executive
position or as may be reasonably assigned or delegated to him from time to time
by the Board, consistent with his position as President and Chief Executive
Officer.  In general, Employee shall have management authority with
respect to, and responsibility for, the overall operations and day-to-day
business and affairs of the Company and all major operating units and executives
of the Company shall report, either directly or indirectly (through other
executives of the Company or its subsidiaries who report directly to the
Employee) to the Employee.

    

    3.2  During
the term of this Agreement and excluding periods of vacation and sick leave to
which the Employee is entitled, the Employee agrees to devote substantially all
of his business time and attention to the affairs of the Company and, to the
extent necessary to discharge the responsibilities assigned hereunder, use his
best efforts in the performance of his duties for the Company and any subsidiary
corporation of the Company.  During the term of this Agreement the
Employee may, so long as it does not materially interfere with his duties
hereunder: (i) subject to Article VII hereof, serve on the board of directors
(or equivalent bodies) of civic, non-profit, or charitable organizations or
entities unaffiliated with the Company, (ii) deliver lectures or otherwise
participate in speaking engagements, and (iii) manage his personal investments
and affairs.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    3.3  Employee
shall undertake regular travel to the Company’s executive and operational
offices, and such other occasional travel within or outside the United States as
is or may be reasonably necessary in the interests of the
Company.  All such travel shall be at the sole cost and expense of the
Company and all airplane travel shall be first or business class, or otherwise
fully reimbursed at cost, to the extent that such reimbursements do not exceed
the approximate equivalent published fare for first or business class
travel.

    

    ARTICLE
IV

    COMPENSATION

    

    4.1  During
the term of this Agreement, Employee shall be compensated at the rate of
$200,000 per annum, subject to such increases to be determined by the Board, or
if the Board so designates, a compensation committee of the Board, in its
discretion, at the commencement of each of the Company’s fiscal years during the
term of this Agreement (the “Base Salary”).  Base Salary shall be paid
to the Employee in regular installments on each of the Company's regular pay
dates for executives, but no less frequently than monthly.

     

    4.2  Employee
shall be eligible to receive a bonus (the “Bonus”) in the discretion of the
Board, or if the Board so designates, a Compensation Committee of the Board
based on the annual performance of the Company.  The Bonus will be
based on Employee’s achievement of revenue and income targets and other key
objectives established at the commencement of each fiscal year by the Board or
if the Board so designates, the Compensation Committee of the Board and
reasonably acceptable to the Employee.

    

    4.3  The
Bonus shall be paid to the at such time as the amount of the Bonus for such
period can reasonably be audited by the Company’s independent accountants, as
may be determined by the Board. The Company shall deduct from Employee’s
compensation all federal, state, and local taxes which it may now or may
hereafter be required to deduct under applicable law.

    

    4.4  Employee
may receive such other additional compensation as may be determined from time to
time by the Board including bonuses and other long term compensation
plans.  Nothing in this subparagraph 4.4 shall be deemed or construed
to require the Board to award any bonus or additional compensation.

    

    ARTICLE
V

    BENEFITS

    

    

    5.1  During
the term hereof, the Company shall provide Employee with the following benefits,
as such benefits may change from time to time (the “Benefits”): (i) group health
care and insurance benefits as generally made available to the Company’s senior
management; and (ii) such other benefits (including insurance related benefits,
holiday, sick leave, personal days, etc.) obtained by the Company or made
generally available to the Company’s senior management;

    

    5.2  The
Company shall reimburse Employee, upon presentation of the Company’s standard
expense report accompanied by appropriate vouchers and other suitable
documentation, incurred by Employee on behalf of the Company, provided such
expenditure is consistent with Company policy.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    5.3  In
the event the Company wishes to obtain Key Man life insurance on the life of
Employee, Employee agrees to cooperate with the Company in completing any
applications necessary to obtain such insurance and promptly submit to such
physical examinations and furnish such information as any proposed insurance
carrier may request.

    

    5.4  For
the term of this Agreement, Employee shall be entitled to paid vacation at the
rate of (4) weeks per annum.

     

    ARTICLE
VI

    NON-DISCLOSURE

    

    6.1    The
Employee shall not, at any time during or after the termination of his
employment hereunder, except when acting on behalf of and with the authorization
of the Company, or when required by law or legal process, or where appropriate
in response to regulatory authorities, make use of or disclose to any person,
corporation, or other entity, for any purpose whatsoever, any trade secret or
other confidential information concerning the Company’s business, finances,
marketing, computerized payroll, accounting and information business, personnel
and/or employee leasing business of the Company and its subsidiaries, including
information relating to any customer of the Company, or any other nonpublic
business information of the Company and/or its subsidiaries learned as a
consequence of Employee’s employment with the Company, except for information
available publicly or from other non-confidential
sources  (collectively referred to as the “Proprietary
Information”).  The Employee acknowledges that Proprietary
Information, as they may exist from time to time, are valuable and unique assets
of the Company, and that disclosure of any such information would cause
substantial injury to the Company.  Proprietary Information shall
cease to be Proprietary Information, as applicable, at such time as such
information becomes public other than through disclosure, directly or
indirectly, by Employee in violation of this Agreement.

    

    6.2  If
Employee is requested or required (by oral questions, interrogatories, requests
for information or document subpoenas, civil investigative demands, or similar
process) to disclose any Proprietary Information,  Employee shall,
unless prohibited by law, promptly notify the Company of such request(s) so that
the Company may seek an appropriate protective order.

    

    ARTICLE
VII

    RESTRICTIVE
COVENANTS

    

    7.1  In
the event of the termination of Employee’s employment with the Company at any
time, Employee agrees that he will not, for a period of one (1) year following
such termination, directly or indirectly, enter into or become associated with
or engage in any other business (whether as a partner, officer, director,
shareholder, employee, consultant, or otherwise), which business is primarily
involved in developing
proprietary formulations of curcumin, a naturally occurring compound found in
the root of curcuma longa (tumeric) plant, for application in malignant diseases
that are the same or substantially similar to the business of the Company in
competition with the Company, or which the Company was in the process of
developing during the term of Employee’s employment with the Company and such
development is based on actual or demonstrative anticipated research (a
“Competitive Business”). Notwithstanding the foregoing, the ownership by
Employee of less than two percent of the shares of any publicly held corporation
shall not violate the provisions of this Article VII. In furtherance of the
foregoing, Employee shall not during the aforesaid period of non-competition,
directly or indirectly, in connection with any Competitive Business solicit any
customer or employee of the Company who was a customer or employee of the
Company  within one year of the Termination Date.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    7.2  Except
as otherwise may be agreed by the Company in writing, in consideration of the
employment of Employee by the Company, and free of any additional obligations of
the Company to make additional payment to Employee, Employee agrees to
irrevocably assign to the Company any and all inventions, software, manuscripts,
documentation, improvements or other intellectual property whether or not
protectable by any state or federal laws relating to the protection of
intellectual property, relating to the present or future business of the Company
that are developed by Employee  during the term of his/her employment
with the Company, either alone or jointly with others, and whether or not
developed during normal business hours or arising within the scope of his/her
duties of employment.  Employee agrees that all such inventions,
software, manuscripts, documentation, improvement or other intellectual property
shall be and remain the sole and exclusive property of the Company and shall be
deemed the product of work for hire.  Employee hereby agrees to
execute such assignments and other documents as the Company may consider
appropriate to vest all right, title and interest therein to the Company and
hereby appoints the Company Employee’s attorney-in-fact with full powers to
execute such document itself in the event employee fails or is unable to provide
the Company with such signed documents.  Notwithstanding the
foregoing, this provision does not apply to an invention for which no equipment,
supplies, facility, or trade secret information of the Company was used and
which was developed entirely on Employee’s own time, unless (a) the invention
relates (i) to the business of the Company, or (ii) to the Company’s actual or
demonstrably anticipated research or development, or (b) the invention results
from any work performed by Employee for the Company.

    

    7.3  If
any court shall hold that the duration of non-competition or any other
restriction contained in this Article VII is unenforceable, it is our intention
that same shall not thereby be terminated but shall be deemed amended to delete
therefrom such provision or portion adjudicated to be invalid or unenforceable
or, in the alternative, such judicially substituted term may be substituted
therefor.

    

    ARTICLE
VIII

    TERM

    

    8.1  This
Agreement shall be effective upon execution by both parties hereto and the
employment term (the “Initial Term”) shall commence on June 1, 2007 (the
“Commencement Date”) and terminate on May 31, 2009 (the “Expiration Date”),
unless sooner terminated upon the death of the Employee, or as otherwise
provided herein.

    

    8.2  The
Company shall notify in writing the Employee of the Company’s intention to
continue Employee’s employment beyond the Expiration Date no less than 90 days
prior to the Expiration Date. Upon termination of the Employee’s employment with
the Company, the Company shall pay Employee, in addition to any other payments
due hereunder, the amounts due under Article IX.

    

    ARTICLE
IX

    TERMINATION

    

    9.1  The
Company may terminate this Agreement by giving a Notice of Termination to the
Employee in accordance with this Agreement:

    

    a.  for
Disability;

     

    b.  for
Cause

     

    
      c.   without
Cause.

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    9.2  Employee
may terminate this Agreement at any time by giving 30 days prior written Notice
of Termination to the Company in accordance with this Agreement.

    

    9.3   If
the Employee’s employment with the Company shall be terminated, the Company
shall pay and/or provide to the Employee (or his estate) the following
compensation and benefits:

    

    a. 
if the
Employee was terminated by the Company for Cause, or the Employee terminates
without Good Reason, the Accrued Compensation;

    

    b. 
if the
Employee was terminated by the Company for Disability, the Accrued Compensation,
the Severance Payment and the Continuation Benefits; or

    

    c. 
if
termination was due to the Employee’s death, the Accrued Compensation;
or

    

    d. 
if the
Employee was terminated by the Company without Cause or the Employee terminates
this Agreement for Good Reason, (i) the Accrued Compensation; (ii) the Severance
Payment; and (iii) the Continuation Benefits.

    

    e.
 In the
event the Company fails to notify the Employee in accordance with Section 8.2,
or after notifying the Employee fails to reach an agreement on a new employment
agreement prior to the Expiration Date, Employee’s employment shall terminate on
the Expiration Date and the Company shall pay the Employee the Severance
Payment; Accrued Compensation, and the Continuation Benefits.

    

    9.4   The
amounts payable under Section 9.3, shall be paid as follows:

    

    
      a.  Accrued
Compensation shall be paid on the first regular pay date after the Termination
Date (or earlier, if required by applicable law).

    

    

    
      b.  If the
Continuation Benefits are paid in cash, the aggregate amount of the Continuation
Benefits shall be paid as follows: 25% in one lump sum on the first regular pay
date after the Termination Date, and the balance in five equal monthly
installments commencing one month after the Termination Date (or earlier, if
required by applicable law) on the Company’s regular pay
dates.

    

    

    
      c.  The
Severance Payments shall be paid  as follows: 25% in one lump sum
within five business days of the Termination Date, and the balance in five equal
monthly installments commencing one month after the Termination Date (or
earlier, if required by applicable law) on the Company’s regular pay
dates;

    

    

    
      d.  Notwithstanding
the foregoing, in the event counsel for the Employee advises the Employee that
any payments should be deferred for six months after the Termination Date, the
Company shall defer the payment of all such payments for six months (the
“Deferral Period”), and pay, in one lump sum on the sixth month anniversary of
the Termination Date, all payments deferred during the Deferral Period, and
thereafter all payments shall continue as otherwise provided in this
Agreement.

    

     

    
      
        
        

      

      
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    9.5  The
Employee shall not be required to mitigate the amount of any payment, including
the value of any Continuation Benefit, provided for in this Agreement by seeking
other employment or otherwise and no such payment shall be offset or reduced by
the amount of any compensation or benefits provided to the Employee in any
subsequent employment except as provided in Sections 1.4.

    

    9.6  For
a period of three years following the termination of this Agreement, Employee
agrees that he will not make any negative or derogatory statements in verbal,
written, electronic or any other form about the Company, including, but not
limited to, a negative or derogatory statement made in, or in connection with,
any article or book, on a website, in a chat room or via the internet except
where such statement is required by law or regulation.  During such
three year period, none of the executive officers and directors shall make any
negative or derogatory statements in verbal, written, electronic or any other
form about the Employee, including, but not limited to, a negative or derogatory
statement made in, or in connection with, any article or book, on a website, in
a chat room or via the internet except where such statement is required by law
or regulation.

    

    ARTICLE
X

    TERMINATION
OF PRIOR AGREEMENTS

    

    10.1  This
Agreement, and any stock option, bonus plan and benefit plans, sets forth the
entire agreement between the parties and supersedes all prior agreements,
letters and understandings between the parties, whether oral or written prior to
the effective date of this Agreement, except for the terms of employee stock
option plans and option certificates.

    

    ARTICLE
XI

    RESTRICTED
STOCK AND OTHER EQUITY AWARDS

    

    11.1  The
Company issued Employee 1,500,000 shares of Common Stock of the Company (the
“Original Shares”) on July
1***, 2007 (the “Issue Date”). Employee agrees that simultaneously with
the execution of this Agreement, as further consideration for the consideration
and benefits being paid by the Company hereunder, that the Original Shares shall
be subject to the vesting requirements described herein. It is hereby agreed by
the Company and Employee that fifty percent of the Original Shares shall vest
upon the six month anniversary of the Issue Date and the remaining fifty-percent
shall vest upon the twelve month anniversary of the Issue Date. Except as
specified in Section 11.2, if Employee renders continuous service to the Company
from the date hereof to a vesting date, on each such vesting date the Company
shall deliver to Employee a certificate representing such number of the Original
Shares as shall vest on such date. Other than as provided for in Section 11.2,
the termination of Employee’s employment prior to any vesting date shall
automatically result in the cancellation of the unvested portion of Employee’s
Original Shares and such unvested Original Shares shall be returned to the
status of authorized but unissued shares effective as of such termination
date.

    

    11.2  In
the event of a (i) Change of Control, as defined in Section 1.3, or (ii)
termination of Employee’s employment with the Company without cause, pursuant to
Section 9.1(c) or by the Employee for Good Reason, then the conditions to the
vesting of the Original Shares shall be deemed void and all such Original Shares
shall be immediately and fully vested and delivered to the
Employee.

     

    
      
        
        

      

      
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    11.3  To
the extent that Employee is eligible to sell the Original Shares, Employee
agrees that during the initial term of this Agreement (as defined in Section
8.1) and for a period of twelve months following any termination or expiration
of the original term of this Agreement, Employee hereby agrees to restrict sales
of the Original Shares which shall have vested as of the date of such
termination or expiration, such that the number of shares Employee can publicly
sell shall be equal to the number of shares Employee would be eligible to sell
pursuant to the volume restrictions of Rule 144 (as in effect on the
Commencement Date) adopted by the Securities and Exchange Commission pursuant to
the Securities Act of 1933, as amended. Notwithstanding the foregoing
restrictions, Employee shall be permitted to transfer Original Shares without
regard to the resale restrictions specified herein in connection with (i)
private transactions exempt from the registration requirements of the Securities
Act of 1933 by virtue of Section 4(1) thereof, (ii) transfers for estate
planning purposes or (iii) bona fide gifts, so long as
any such transferee signs a written instrument satisfactory to the Company in
its sole discretion evidencing such transferee’s agreement to be bound by the
provisions of this Section 11.3 with respect to the Original Shares so
transferred. Employee further agrees that the certificates representing the
Original Shares shall bear a legend substantially as follows:

    

    “The
securities represented by this certificate are subject to certain restrictions
set forth in that certain Employment Agreement, dated as of __________, 2007, as
may be amended or modified from time to time, by and between SignPath and
Laurence Helson, MD.”

    

    11.4  Employee
shall be eligible to receive additional equity compensation awards under the
Company’s equity compensation plans as such awards may be granted by the
Company’s Board of Directors or board committee established for the purpose of
administering any such compensation plans, in their sole discretion. Any such
awards shall be based on Employee’s duties and responsibilities and other
criteria established by the Board of Directors or committee and the amount and
terms of such awards, if any, shall be subject to the terms and conditions of
the Company’s equity compensation plans and such additional terms as may be set
forth in a certificate representing the award.

    

    ARTICLE
XII

    ARBITRATION
AND INDEMNIFICATION

    

    12.1  Any
dispute arising out of the interpretation, application, and/or performance of
this Agreement with the sole exception of any claim, breach, or violation
arising under Articles VI or VII hereof shall be settled through final and
binding arbitration before a single arbitrator in the State of New York in
accordance with the Rules of the American Arbitration Association. The
arbitrator shall be selected by the American Arbitration Association and shall
be an attorney-at-law experienced in the field of corporate law.  Any
judgment upon any arbitration award may be entered in any court, federal or
state, having competent jurisdiction of the parties.

    

    12.2  The
Company hereby agrees to indemnify, defend, and hold harmless the Employee for
any and all claims arising from or related to his employment by the Company at
any time asserted, at any place asserted, to the fullest extent permitted by
law.  The Company shall maintain such insurance as is necessary and
reasonable (with minimum coverage of not less than $2,000,000) to protect the
Employee from any and all claims arising from or in connection with his
employment by the Company during the term of Employee's employment with the
Company and for a period of six (6) years after the date of termination of
employment for any reason. The provisions of this Section are in addition to and
not in lieu of any indemnification, defense or other benefit to which Employee
may be entitled by statute, regulation, common law or otherwise.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XIII

    SEVERABILITY

    

    If any
provision of this Agreement shall be held invalid and unenforceable, the
remainder of this Agreement shall remain in full force and effect.  If
any provision is held invalid or unenforceable with respect to particular
circumstances, it shall remain in full force and effect in all other
circumstances.

     

    ARTICLE
XIV

    NOTICE

    

    For the
purposes of this Agreement, notices and all other communications provided for in
the Agreement shall be in writing and shall be deemed to have been duly given
when (a) personally delivered or (b) sent by (i) a nationally recognized
overnight courier service or (ii) certified mail, return receipt requested,
postage prepaid and in each case addressed to the respective addresses as set
forth below or to any such other address as the party to receive the notice
shall advise by due notice given in accordance with this paragraph. All notices
and communications shall be deemed to have been received on (A) if delivered by
personal service, the date of delivery thereof; (B) if delivered by a nationally
recognized overnight courier service, on the first business day following
deposit with such courier service; or (C) on the third business day after the
mailing thereof via certified mail. Notwithstanding the foregoing, any notice of
change of address shall be effective only upon receipt.

    

    The
current addresses of the parties are as follows:

    

    
      	
              IF
      TO THE COMPANY:

            	
              Lawrence
      Helson, MD.

            
	 
      	
              1375
      California Road

            
	 
      	
              Quakertown,
      Pennsylvania, 18951.

            
	 
      	 
      
	 
      	 
      
	
              WITH
      A COPY TO:

            	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              IF
      TO THE EMPLOYEE:

            	
              Lawrence
      Helson, MD

            
	 
      	
              1375
      California Road

            
	 
      	
              Quakertown,
      Pennsylvania, 18951.

            

    

    

    ARTICLE
XV

    BENEFIT

    

    This
Agreement shall inure to, and shall be binding upon, the parties hereto, the
successors and assigns of the Company, and the heirs and personal
representatives of the Employee.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XVI

    ENTIRE
AGREEMENT; WAIVER

    

    This
Agreement contains the entire agreement between the parties
hereto.  No change, addition, or amendment shall be made hereto,
except by written agreement signed by the parties hereto. The waiver by either
party of any breach or violation of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach of construction and
validity.

    

    ARTICLE
XVII

    GOVERNING
LAW; JURISDICTION

    

    This
Agreement has been negotiated and executed in the State of New
York.  The law of the State of New York shall govern the construction
and validity of this Agreement. Any or all actions or proceedings which may be
brought by the Company or Employee under this Agreement shall be brought in
courts having a situs within the State of New York, and Employee and the Company
each hereby consent to the jurisdiction of any local, state, or federal court
located within the State of New York.

    

    IN WITNESS WHEREOF, the
parties hereto have executed this Agreement and affixed their hands and seals
the day and year first above written.

     

    
      
        	 
      	
                SignPath,
      Pharma, Inc.

              	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Dr. Arthur Bollon

              	 
      
	 
      	 
      	
                Dr.
      Arthur Bollon,

              	 
      
	 
      	 
      	
                Board
      of Director

              	 
      
	 
      	 
      	 
      	 
      
	 
      	
                Employee

              	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	  
       	
                /s/ Lawrence Helson, MD

              	 
      
	 
      	 
      	
                Lawrence
      Helson, MD

              	 
      
	 
      	 
      	
                Employee

              	 
      

      

    

     

    
      
        
        

      

      
        12

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