Document:

SUBSCRIPTION
      AGREEMENT

    

    

    TO:  SYNTHEMED,
      INC.

    

    AND
      TO: CLUBB
      CAPITAL LIMITED

     

    RE:  SUBSCRIPTION
      FOR SHARES

    

    

    1.    Subscription

     

    The
      undersigned (the “Purchaser”) hereby subscribes for on and subject to the terms
      and conditions set forth herein, from SyntheMed, Inc., a Delaware corporation
      (the “Corporation”), the number of shares of common stock, par value of
      $0.001 per share (“Common Stock), set forth on the signature page hereof (the
“Purchased Shares”). The Purchased Shares are being sold to the Purchaser in
      consideration for $1.00 (US) per share (the “Subscription Price”), and as part
      of an offering (the “Offering”) of up to 6,000,000 shares of Common Stock (the
“Shares”). If the maximum number of Shares offered is sold, the Corporation will
      receive gross proceeds of $6,000,000 (US). There is no minimum number of Shares
      being offered, and the Corporation reserves the right to accept subscriptions
      as
      and when received. Clubb Capital Limited (the “Agent”) is serving as a placement
      agent for the Offering pursuant to an agency agreement to be entered into with
      the Corporation (the “Agency Agreement”).

     

    The
      Offering is being made to investors resident outside the United States pursuant
      to exemptions from local registration, prospectus or similar requirements.
      The
      Offering is being made in reliance upon the exemption from registration under
      the Securities Act of 1933, as amended (the “Securities Act”), provided by
      Section 4(2) thereof and/or Regulation D promulgated thereunder and in reliance
      upon Regulation S promulgated under the Securities Act and exemptions from
      local
      registration, prospectus or similar requirements. 

     

    2.    Use
      of Proceeds

     

    The
      proceeds of the Offering will be used by the Corporation to fund working capital
      and general corporate purposes.

     

    3.    Documents
      to be provided by the Purchaser

     

    The
      Purchaser must complete, sign and return (i) two executed copies of this
      Subscription Agreement and the Investor Rights Agreement, a copy of which is
      appended as Annex A-1 hereto and (ii) one executed copy of the Selling
      Securityholder Questionnaire, a copy of which is appended as Annex A-2 hereto
      and the aggregate
      Subscription Price must be paid in U.S. dollars by wire transfer to the
      following account:

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    Bank
      of
      America NT & SA

    100
      West
      33rd
      Street

    New
      York,
      NY 10048-1191

    Swiftcode:
      BOFAUS3N

    ABA
      No.
      026009593

    

    

    For
      Further Credit to:

    Canadian
      Imperial Bank of Commerce

    Main
      Branch, Commerce Court West

    Toronto,
      Ontario M5L 1A2

    Swiftcode:
      CIBCCATT

    Transit
      No. 00002

    Final
      Beneficiary: Blake Cassels & Graydon LLP

    Account
      No. 000020244414

    Reference:
      65283/14 - JACK

    

    or
      in
      such other manner as may be specified by the Agent. At each Closing (as defined
      below), the aggregate Subscription Price for all Purchased Shares subject to
      such Closing will be released to the Corporation by Blake, Cassels & Graydon
      LLP on instructions from the Agent. The deliveries required pursuant to this
      Section 3 are hereinafter referred to as the “Purchaser’s Closing
      Deliveries.”

     

    4.    Closing
      and Delivery of Share Certificates

     

    Delivery
      and sale of the Purchased Shares will be completed (the “Closing”) at the
      offices of the Corporation (or such other place or places as the Corporation
      and
      the Agent may agree) at 10:00 a.m. (Eastern Standard Time) (the “Closing
      Time”) on such date or dates as the Corporation and the Agent may agree (the
“Closing Date”). The Final Closing (as defined below) is expected to occur on or
      about June 30, 2007. As used herein, “Final Closing” means the date on which the
      full amount of the Offering is sold or the earlier termination of the Offering
      period as determined by the Corporation.

     

    Certificate(s)
      representing the Purchased Shares will be delivered at Closing against delivery
      by the Purchaser of the requisite funds by wire transfer.
      To avoid the need to deliver legended Share certificate(s) prior to
      effectiveness of the planned resale registration contemplated by the Investor
      Rights Agreement, the Purchaser agrees that delivery of the Share certificate(s)
      may be made to counsel for the Agent, who shall hold such Share certificate(s)
      on behalf of the Purchaser and who shall, upon effectiveness of the registration
      of the resale of the Shares, deliver the Share certificate(s) without legend
      in
      accordance with the delivery instructions of the Purchaser set forth on the
      signature page hereto.
      Notwithstanding the foregoing, the Purchaser may at any time request physical
      delivery of a certificate for Purchased Shares by notice in writing to the
      Agent, provided that any such certificate delivered prior to effectiveness
      of
      the resale registration statement will bear a restrictive legend as set out
      in
      Section 5(g) below. Moreover, if the resale registration statement is not
      declared

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    effective
      within 90 days of the date of the Final Closing (or 120 days if reviewed by
      the
      Securities and Exchange Commission (the “SEC”)), counsel for the Agent shall, at
      the Agent’s option and in accordance with the Agent’s written instructions,
      cause the Share certificate(s) in its possession and registered in the
      Purchaser’s name to be endorsed with such restrictive legend and delivered to
      the Purchaser. The Purchaser, on its own behalf or on behalf of others for
      whom
      it is contracting hereunder, agrees and acknowledges that counsel for the Agent
      shall not be liable for any error in judgment or for any act done or step taken
      or omitted by it in good faith or for any mistake, in fact or law, or for
      anything which it may do or refrain from doing with the performance of any
      obligations in this Section 4, except arising out of its gross negligence or
      willful misconduct. The Purchaser, on its own behalf or on behalf of others
      for
      whom it is contracting hereunder, hereby appoints the Agent, with full power
      of
      substitution, as its true and lawful attorney and agent with the full power
      and
      authority in its place and stead to swear, execute, file and record any document
      necessary to give effect to the delivery and sale of the Purchased Shares,
      to
      terminate this subscription on its behalf in the event that any condition
      precedent to the Offering has not been satisfied, to execute a receipt for
      the
      Purchased Shares and all other documentation, and to modify or waive any
      conditions or grant any waivers on its behalf in connection with this
      Subscription Agreement and the transactions contemplated hereby.

     

    5.    Certain
      Matters Relating to the Offering

     

    The
      Purchaser, on its own behalf (or on behalf of others for whom it is contracting
      hereunder) acknowledges and agrees that:

     

    
      	
              (a)

            	
              it
                (or others for whom it is contracting hereunder) has not been provided
                with a prospectus or an offering memorandum or any similar document
                in
                connection with its purchase of
                Shares;

            

    

     

    
      	
              (b)

            	
              its
                decision to execute this Subscription Agreement and to subscribe
                for the
                Purchased Shares (on its own behalf or on behalf of others for whom
                it is
                contracting hereunder) has not been based upon any verbal or written
                representations as to fact or otherwise made by or on behalf of the
                Agent
                or the Corporation and that the Purchaser’s decision (or the decision of
                others for whom the Purchaser is contracting hereunder) is based
                entirely
                upon publicly available information concerning the Corporation (any
                such
                information having been delivered to the Purchaser without independent
                investigation or verification by the
                Agent);

            

    

     

    
      	
              (c)

            	
              the
                Agent and its directors, officers, employees, agents and representatives
                assume no responsibility or liability of any nature whatsoever for
                the
                accuracy or adequacy of any such publicly available information or
                as to
                whether all information concerning the Corporation required to be
                disclosed by it has been generally
                disclosed;

            

    

     

    
      	
              (d)

            	
              as
                at the Closing Date, the Shares have not been registered under the
                U.S.
                Securities
                Act of 1933,
                as amended (the “Securities Act”), with the result that the Purchased
                Shares are “restricted securities” within the meaning of Regulation S and
                Rule 144 promulgated under the Securities Act and, absent registration
                under the Securities Act, may not
                be

            

    

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    offered
      or sold within the United States or to or for the account or benefit of a U.S.
      Person (as defined in Rule 902(o) of Regulation S promulgated under the
      Securities Act) except pursuant to an exemption from the registration
      requirements of the Securities Act;

     

    
      	
              (e)

            	
              [intentionally
                omitted]; 

            

    

     

    
      	
              (f)

            	
              the
                Purchaser (or others for whom the Purchaser is contracting hereunder)
                has
                been advised to consult its own legal advisors with respect to any
                applicable resale restrictions and the Purchaser (or others for whom
                the
                Purchaser is contracting hereunder) is solely responsible (and neither
                the
                Corporation nor the Agent is in any way responsible) for compliance
                with
                applicable resale restrictions;

            

    

     

    
      	
              (g)

            	
              the
                Purchaser understands and agrees that, except as provided below in
                this
                paragraph (g), each certificate representing the Purchased Shares
                shall
                bear a legend in substantially the following form (in addition to
                any
                legend required under applicable state securities
                laws):

            

    

     

    “THE
      SECURITIES REPRESENTED HEREBY WERE ORIGINALLY ISSUED WITHOUT REGISTRATION UNDER
      THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”) AND MAY BE
      OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
      REGISTRATION ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN
      ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S UNDER THE 1933 ACT OR (C)
      PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS, PROVIDED
      IN SUCH LATTER CASE THAT THE HOLDER UPON REQUEST PRIOR TO SUCH SALE FURNISHES
      TO
      THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING TO THAT EFFECT
      REASONABLY SATISFACTORY TO THE CORPORATION. HEDGING TRANSACTIONS INVOLVING
      THE
      SECURITIES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH
      THE
      1933 ACT.”

     

    Certificates
      evidencing the Purchased Shares shall not be required to contain the foregoing
      legend (i) while the registration statement contemplated by the Investor Rights
      Agreement is effective under the Securities Act, (ii) following any sale of
      such
      shares pursuant to Rule 144 if the Purchaser provides the Corporation with
      a
      legal opinion (and the documents upon which the legal opinion is based)
      reasonably acceptable to the Corporation to the effect that the shares can
      be
      sold under Rule 144, (iii) if and for so long as the Purchased Shares are
      eligible for sale under Rule 144(k), (iv) if the holder provides the Corporation
      with a legal opinion (and the documents upon which the legal opinion is based)
      reasonably acceptable to the Corporation to the effect that the legend
      is

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    not
      required under applicable requirements of the Securities Act or (v) to the
      extent held by counsel to the Agent in accordance with Section 4 above.

     

     6.    Representations,
      Warranties and Covenants of the Corporation

     

    The
      Corporation represents, warrants and covenants to the Agent, the Purchaser
      (and
      to any others on whose behalf the Purchaser is contracting hereunder) as of
      the
      date hereof and as of the Closing Date, which representations, warranties and
      covenants shall survive any investigation made by the Agent, the Purchaser
      or
      such others for a period of two years after the Final Closing, that:

     

    
      	(a)	
              the
                Corporation is a validly existing corporation in good standing under
                the
                laws of the jurisdiction in which it is incorporated, and the Corporation
                has no subsidiaries;

            

    

     

    
      	(b)	
              the
                Corporation is duly qualified and authorized to do business in the
                jurisdiction(s) in which it carries on business or to own property
                where
                required under the laws of the jurisdiction(s) in which any such
                property
                is located;

            

    

     

    
      	
              (c)

            	
              the
                Corporation is current with all material filings required to be made
                under
                the laws of any jurisdiction in which it carries on any material
                business,
                and the Corporation has all necessary licenses, leases, permits,
                authorizations and other approvals necessary to permit it to conduct
                its
                business as currently conducted, except where the failure to have
                any such
                license, lease, permit, authorization or approval would not have
                a
                material adverse effect on the Corporation and its
                business;

            

    

     

    
      	
              (d)

            	
              the
                audited financial statements of the Corporation as at and for the
                year
                ended December 31, 2006 and the interim financial statements of the
                Corporation as at and for the three-month period ended March 31,
                2007
                present fairly, in all material respects, the financial position
                of the
                Corporation as at the respective period-end dates, and the results
                of its
                operations and the changes in its financial position for the 12-month
                period ended December 31, 2006 in the case of the audited financial
                statements and 3-month period ended March 31, 2007 in the case of
                the
                interim financial statements, all in accordance with generally accepted
                accounting principles, and, since March 31, 2007, there has been
                no
                material adverse change in the business, affairs or financial or
                other
                condition of the Corporation or any of its subsidiaries, except as
                disclosed in the notes to the financial statements for the quarter
                then
                ended;

            

    

     

    
      	
              (e)

            	
              the
                Corporation has all requisite power and authority to carry out its
                obligations under this Subscription
                Agreement;

            

    

     

    
      	
              (f)

            	
              this
                Subscription Agreement has been duly authorized, executed and delivered
                by
                the Corporation and constitutes or on the Closing Date will constitute,
                a
                legal, valid and binding obligation of the Corporation enforceable
                in
                accordance with its terms except that: (i) the enforcement hereof may
                be limited by bankruptcy, insolvency, reorganization and other laws
                affecting the enforcement of creditors’ rights generally, (ii) rights
                of indemnity thereunder may be limited under applicable law, and
                (iii) equitable remedies, including without limitation specific
                performance and injunctive relief, may be granted only in the discretion
                of a court of competent
                jurisdiction;

            

    

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    
      	
              (g)

            	
              the
                Shares are or on the Closing Date will be duly and validly authorized
                and,
                when issued and delivered against payment therefor, will be duly
                and
                validly issued, fully paid and non-assessable shares in the capital
                stock
                of the Corporation;

            

    

     

    
      	
              (h)

            	
              the
                authorized capital of the Corporation consists of 150,000,000 shares
                of
                Common Stock and 5,000,000 shares of preferred stock, par value of
                $0.01
                per share. Of the preferred stock, 500,000 shares have been designated
                as
                Series A Convertible Preferred Stock, 1,116,500 shares have been
                designated as Series B Convertible Preferred Stock and 663,000 shares
                have
                been designated as Series C Convertible Preferred Stock. As of March
                31,
                2007 there were 83,761,185 shares of Common Stock and no shares of
                preferred stock outstanding. In addition, as of that date, the Corporation
                had an aggregate of 15,562,602 shares of Common Stock reserved for
                issuance upon exercise or conversion of the following outstanding
                securities: (i) options which have been granted under the Corporation’s
                stock option plans and other agreements, to purchase an aggregate
                of
                14,087,602 shares of Common Stock and (iii) warrants issued to the
                Agent
                or its designees to purchase an aggregate of 1,475,000 shares of
                Common
                Stock; 

            

    

     

    
      	
              (i)

            	
              the
                Corporation is not, and at the Closing Date will not be: (i) in
                breach or violation of any of the terms or provisions of, or in default
                under, this Agreement, any other Subscription Agreement for the purchase
                of Shares, the Agency Agreement, any indenture, mortgage, deed of
                trust or
                loan agreement, (except as disclosed in the Corporation’s SEC filings),
                other agreement (written or oral) or instrument to which it is a
                party or
                by which it is bound or to which any of its property or assets is
                subject,
                which breach or violation or the consequences thereof would result
                in a
                material adverse change to it or its business; or (ii) in violation
                of the provisions of its articles, by-laws, resolutions or any statute
                or
                any other rule or regulation of any court or governmental agency
                or body
                having jurisdiction over it or any of its properties which violation
                or
                the consequences thereof would result in a material adverse change
                to it
                or its business;

            

    

     

    
      	
              (j)

            	
              the
                issue and sale of the Purchased Shares and the performance and
                consummation of the transactions contemplated herein will not conflict
                with or result in a breach or violation of any of the terms or provisions
                of, or constitute a default under, any indenture, mortgage, deed
                of trust,
                loan agreement or other agreement (written or oral) or instrument
                to which
                the Corporation or any subsidiary is bound or to which any of the
                property
                or assets of the Corporation or any subsidiary is subject, which
                breach or
                violation or the consequences thereof would result in a material
                adverse
                change to the Corporation or its business, nor will any such action
                conflict with or result in any violation of the provisions of the
                articles, by-laws or resolutions of the Corporation or any statute
                or any
                order, rule or regulation of any court or governmental agency or
                body
                having jurisdiction over the Corporation or any subsidiary or any
                of its
                properties which violation or the consequences thereof would result
                in a
                material adverse change to the Corporation or its
                business;

            

    

     

    
      	
              (k)

            	
              the
                Corporation has established on its books reserves which are adequate
                for
                the payment of all taxes not yet due and payable; there are no liens
                or
                other liabilities for taxes on the assets of the Corporation except
                for
                taxes not yet due; there are no audits of any of the tax returns
                of the
                Corporation which are known by the Corporation’s management to
                be

            

    

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    pending
      and there are no claims which have been or may be asserted relating to any
      such
      tax returns which, if determined adversely, would result in the assertion by
      any
      government or agency of any deficiency having a material adverse effect on
      the
      properties, business or assets of the Corporation;

     

    
      	
              (l)

            	
              the
                Corporation has good and valid title to its properties, leaseholds
                and
                assets, including without limitation the properties, leaseholds and
                assets
                reflected in the balance sheet as of March 31, 2007 referred to in
                Section
                6(d) above, except properties, leaseholds and assets disposed of
                since
                such date at fair market value in the ordinary course of business,
                and has
                good title to all its leasehold estates, in each case subject to
                no
                mortgage, pledge, lien, lease, encumbrance, charge, rights of first
                refusal or options to purchase, whether or not relating to extensions
                of
                credit or the borrowing of money, other than as disclosed in such
                balance
                sheet except as incurred in the ordinary course of business since
                the date
                of such balance sheet, and except in any event where the failure
                to hold
                good title or the existence of a mortgage, pledge, lien, lease,
                encumbrance, charge, right of first refusal or option to purchase
                would
                not have a material adverse effect on the Corporation or its business;
                there exists no condition which interferes with the economic value
                or use
                of such properties and assets and all tangible assets are in good
                working
                condition and repair (subject to ordinary wear and tear) except where
                the
                existence of any such condition would not have a material adverse
                effect
                on the Corporation or its business;

            

    

     

    
      	
              (m)

            	
              the
                Corporation owns or has valid licenses for the use of, or has applied
                for
                registration of, all patents, trade marks, service marks, trade names,
                and
                copyrights necessary for the conduct of its business, except where
                the
                failure to so own or apply for registration would not have a material
                adverse effect on the Corporation or its business; to the best of
                the
                knowledge, information and belief of the Corporation, none of the
                past or
                present activities of the Corporation or the products, services or
                assets
                of the Corporation infringe or constitute an unauthorized use of
                any
                proprietary rights of others, and the Corporation has not received
                any
                notice of infringement of, or conflict with, asserted rights of others
                with respect to any patent, trade mark, service mark, trade name,
                or
                copyright that, individually or in the aggregate, if the subject
                of an
                unfavorable decision, ruling, or finding, would result in a material
                adverse change to the Corporation or its business;
                

            

    

     

    
      	
              (n)

            	
              the
                Corporation has taken reasonable measures to protect and preserve
                the
                confidentiality of all trade secrets and other non-patented proprietary
                information of the Corporation, including without limitation the
                procurement of proprietary invention assignments and non-disclosure
                and
                non-competition agreements from employees, consultants, subcontractors,
                customers and other persons who have access to such
                information;

            

    

     

    
      	
              (o)

            	
              the
                Corporation has filed all necessary federal, state and municipal
                property,
                income and franchise tax returns and has paid all taxes shown as
                due
                thereon or otherwise owed by it to any taxing authority except those
                contested in good faith and for which appropriate amounts have been
                reserved in accordance with generally accepted accounting principles;
                there is no tax deficiency which has been, or to the best of the
                knowledge, information and belief of the Corporation might be, asserted
                against the Corporation which would materially affect the business
                or
                operations of the Corporation; the Corporation has paid all applicable
                federal and state payroll and withholding
                taxes;

            

    

     

    
      
         

      

      
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              (p)

            	
              there
                is no collective bargaining or other union agreement to which the
                Corporation is a party or by which it is bound, or which is currently
                being negotiated; the Corporation does not sponsor, maintain or contribute
                to any pension, retirement, profit sharing, incentive compensation,
                bonus
                or other employee benefit plan, including without limitation any
                employee
                benefit plan covered by Title 4 of the Employee
                Retirement Income Security Act of 1974
                (“ERISA”) or any “multi-employer plan” as defined in Section 4001(a)(3) of
                ERISA, or any other employee benefit plan; to the best of the knowledge,
                information and belief of the Corporation, (i) no employee of the
                Corporation is a party to or bound by any agreement, contract or
                commitment, or subject to any restrictions, particularly but without
                limitation in connection with any previous employment of any such
                person,
                which would result in a material adverse change to the Corporation
                or its
                business, and (ii) no senior officer has any present intention of
                terminating his employment with the Corporation, and the Corporation
                has
                no present intention of terminating any such employment;
                and

            

    

     

    
      	
              (q)

            	
              there
                is no adverse claim, action, proceeding or investigation pending
                or, to
                the knowledge, information and belief of the Corporation, threatened,
                which questions the validity of the issue or sale of the Shares or
                the
                validity of any action taken or to be taken by the Corporation in
                connection with this Subscription Agreement or which would result
                in any
                material adverse change in the financial condition, results of operations,
                business or prospects of the
                Corporation.

            

    

     

    7.    Representations,
      Warranties and Covenants of the Purchaser

     

    The
      Purchaser hereby represents, warrants and covenants to the Agent and the
      Corporation (which representations, warranties and covenants shall survive
      the
      Closing) that:

     

    
      	(a)	
              in
                the case of the subscription by the Purchaser for Shares as principal
                for
                its own account and not for the benefit of any other person, the
                Purchaser
                is purchasing the Purchased Shares as principal for its own account,
                and
                not for the benefit of any other person or company, and this Subscription
                Agreement has been authorized, executed and delivered by, and constitutes
                a legal, valid and binding agreement of the
                undersigned;

            

    

     

    
      	
              (b)

            	
              in
                the case of the subscription by the Purchaser for Shares as agent
                for a
                disclosed principal, each beneficial purchaser of the Purchased Shares
                for
                whom the Purchaser is acting is purchasing as principal for its own
                account and not for the benefit of any other person and the Purchaser
                is
                an agent with due and proper authority to execute this Subscription
                Agreement and all other documentation in connection with the purchase
                of
                the Purchased Shares on behalf of the beneficial purchaser and this
                Subscription Agreement has been duly authorized, executed and delivered
                by
                or on behalf of, and constitutes a legal, valid and binding agreement
                of,
                the disclosed principal;

            

    

     

    
      	
              (c)

            	
              in
                the case of the subscription by the Purchaser of Shares as trustee
                or as
                agent for a principal which is undisclosed or identified by account
                number
                only, this Subscription Agreement has been duly authorized, executed
                and
                delivered by, and constitutes a legal, valid and binding agreement
                of, the
                undersigned acting in such
                capacity;

            

    

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    
      	
              (d)

            	
              if
                the Purchaser is a corporation, the Purchaser is a valid and subsisting
                corporation, has the necessary corporate capacity and authority to
                execute
                and deliver this Subscription Agreement and to observe and perform
                its
                covenants and obligations hereunder and has taken all necessary corporate
                action in respect thereof or, if the Purchaser is a partnership,
                syndicate
                or other form of unincorporated organization, the Purchaser has the
                necessary legal capacity and authority to execute and deliver this
                Subscription Agreement and to observe and perform its covenants and
                obligations hereunder and has obtained all necessary approval in
                respect
                thereof and, in either case, upon execution by the Corporation, this
                Subscription Agreement constitutes a legal, valid and binding contract
                of
                the Purchaser enforceable against the Purchaser in accordance with
                its
                respective terms;

            

    

     

    
      	
              (e)

            	
              if
                the Purchaser is an individual, the Purchaser has attained the age
                of
                majority and is legally competent to execute this Subscription Agreement
                and to take all actions required pursuant
                hereto;

            

    

     

    
      	
              (f)

            	
              the
                Purchaser (1) has read carefully the definition of "Accredited Investor"
                contained in Schedule 1 attached hereto and (2) meets the standards
                of an
                "Accredited Investor" set forth under Rule 501(a) of Regulation D
                under
                the Act and has such knowledge and experience in financial and business
                matters that the Investor is capable of evaluating the merits and
                risks of
                an investment in the Corporation’s securities. The Purchaser will promptly
                notify the Corporation in the event that prior to the issuance of
                any
                securities to the Purchaser the foregoing representation ceases to
                be
                accurate.

            

    

     

    
      	
              (g)

            	
              If
                the Purchaser is not a US Person within the meaning of Rule 902(o)
                of
                Regulation S promulgated under the Securities Act of 1933 ("US Person"),
                the Purchaser makes the representations and warranties set forth
                on
                Schedule 2 hereto. 

            

    

     

    
      	
              (h)

            	
              if
                required by applicable securities legislation, policy or order of
                a
                securities regulatory authority or other regulatory authority, the
                Purchaser will execute, deliver, file and otherwise assist the Corporation
                in filing such reports and other documents with respect to the issue
                of
                the Purchased Shares as may be reasonably
                required;

            

    

     

    
      	
              (i)

            	
              [intentionally
                omitted];

            

    

     

    
      	
              (j)

            	
              the
                Purchaser has had access to the Corporation’s public filings with the SEC
                (which are accessible via the SEC’s EDGAR Archives located on the internet
                at www.sec.gov)
                and has had an opportunity to ask questions of the Corporation’s
                management;

            

    

     

    
      	
              (k)

            	
              the
                Purchaser is capable of assessing the proposed investment as a result
                of
                the Purchaser’s financial or investment experience or as a result of
                advice received from a registered person other than the Corporation
                or an
                affiliate thereof, and is able to bear the economic loss of its
                investment. The Purchaser recognizes that its purchase of Purchased
                Shares
                involves a high degree of risk in that: (i) the Corporation has
                incurred losses since inception; at March 31, 2007, the Corporation
                had an
                accumulated deficit of approximately $49,286,000 (unaudited); and
                the
                Corporation may require substantial funds in addition to the proceeds
                of
                this Offering to continue its plan of operations;
                (ii) an

            

    

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    investment
      in the Corporation is highly speculative and only investors who can afford
      the
      loss of their entire investment should consider investing in the Corporation
      and
      the Purchased Shares; (iii) the Purchaser may not be able to liquidate the
      Purchaser’s investment; and (iv) transferability of the securities
      comprising the Purchased Shares is extremely limited. The Purchaser has read
      the
      Risk Factors section of the Corporation’s Annual Report on Form 10-KSB for the
      year ended December 31, 2006;

     

    
      	
              (l)

            	
              the
                address of the Purchaser (or others for whom the Purchaser is contracting
                hereunder) furnished by the Purchaser on the Purchaser’s signature page of
                this Subscription Agreement is such person’s principal residence if such
                person is an individual or its principal business address if it is
                a
                corporation or other entity; and

            

    

     

    
      	
              (m)

            	
              the
                Purchaser (or others for whom the Purchaser is contracting hereunder)
                agrees that it will not disclose the terms of the Offering or any
                information it may have acquired from the Corporation in the course
                of
                executing this Subscription Agreement which the Corporation has identified
                as material non-public information, except to the extent (i) that
                such terms or other information becomes generally available to the
                public
                other than by disclosure in violation of this Subscription Agreement,
                (ii) that such information was properly within the Purchaser’s
                possession prior to being furnished by the Corporation, (iii) that
                such information becomes available to the Purchaser on a non-confidential
                basis, such as through disclosure by third parties who have the right
                to
                disclose the information, and (iv) that disclosure of such
                information is compelled by judicial process, provided that in the
                event
                of compulsion by judicial process the Purchaser will inform the
                Corporation promptly upon its receipt of notice of judicial process
                compelling such disclosure.

            

    

     

    8.    Reliance
      Upon Representations, Warranties and Covenants

     

    The
      Purchaser acknowledges that the representations, warranties and covenants
      contained in this Subscription Agreement are made with the intent that they
      may
      be relied upon by the Agent and by the Corporation to, among other things,
      determine the Purchaser’s eligibility or (if applicable) the eligibility of
      others on whose behalf it is contracting hereunder to subscribe for the
      Purchased Shares. The Purchaser further agrees that by accepting the Purchased
      Shares, the Purchaser shall be representing and warranting that the foregoing
      representations and warranties are true as at the Closing Time with the same
      force and effect as if they had been made by the Purchaser at the Closing Time
      and that they shall survive the purchase by the Purchaser of the Purchased
      Shares and shall continue in full force and effect notwithstanding any
      subsequent disposition by it of any Purchased Shares.

     

    9.    Agent’s
      Commission, Fees and Expenses 

     

    The
      Purchaser understands that on the Closing Date, the Agent will receive from
      the
      Corporation a commission equal to 7% of the gross proceeds raised by the Agent
      (payable in cash and in Common Stock (at the issue price thereof), the
      allocation of which to be designated by the Agent, in its sole discretion,
      at
      the Closing Date) and broker warrants (the “Broker Warrants”) to purchase, at an
      exercise price of $1.10 (US)

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    per
      share, that number of shares of Common Stock equal to 7% of the number of
      Purchased Shares issued in respect of proceeds raised by the Agent, as more
      particularly described and subject to the exclusions contained in the Agency
      Agreement. No other fee or commission is payable by the Corporation in
      connection with the sale of the Purchased Shares. However, the Corporation
      will
      also pay on the Closing Date reasonable legal fees and expenses of the Agent’s
      counsel as stipulated in the Agency Agreement. The Purchaser understands and
      acknowledges that a director of the Corporation also serves as a director and
      officer of the Agent.

     

    10.    Costs

     

    The
      Purchaser acknowledges and agrees that all costs and expenses incurred by the
      Purchaser (including any fees and disbursements of any counsel retained by
      the
      Purchaser) relating to the purchase of the Purchased Shares shall be borne
      by
      the Purchaser.

     

    11.    Appointment
      of Agent

     

    
      	 	
              The
                Purchaser, on its own behalf and (if applicable) on behalf of others
                for
                whom the Purchaser is contracting hereunder,
                hereby:

            

    

     

    
      	
              (a)

            	
              irrevocably
                authorizes the Agent to negotiate and settle the form of any agreement
                to
                be entered into in connection with this Subscription Agreement and
                to
                waive on its own behalf and on behalf of the purchasers of Shares,
                in
                whole or in part, or extend the time for compliance with, any of
                the
                closing conditions in such manner and on such terms and conditions
                as the
                Agent may determine, acting reasonably, without in any way affecting
                materially the Purchaser’s obligations or the obligations of such others
                hereunder; and

            

    

     

    
      	
              (b)

            	
              acknowledges
                and agrees that the Agent and the Corporation may vary, amend, alter
                or
                waive, in whole or in part, one or more of the conditions set forth
                in the
                Agency Agreement in such manner and on such terms and conditions
                as they
                may determine, acting reasonably, without in any way affecting materially
                the Purchaser’s obligations or the obligations of such others
                hereunder.

            

    

     

    12.    Governing
      Law

     

    This
      Subscription Agreement shall be governed by the laws of the State of New York
      without reference to its rules as to conflicts of laws. 

     

    13.    Third
      Party Beneficiaries

     

    Except
      for the limitation of liability provisions in Section 4 above, nothing herein,
      express or implied, is intended to nor shall it, confer in any other Person
      any
      legal or equitable right, benefit or remedy of any nature whatsoever under
      or by
      reason of this Subscription Agreement.

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    14.    Survival

     

    This
      Subscription Agreement, including without limitation the representations,
      warranties and covenants contained herein, shall survive and continue in full
      force and effect and be binding upon the Purchaser for a period of two years
      following the completion of the Offering by the Corporation, notwithstanding
      the
      completion of the subscription for the Purchased Shares by the Purchaser
      pursuant hereto, and any subsequent disposition by the Purchaser of any
      Purchased Shares. 

     

    15.    Assignment

     

    This
      Subscription Agreement is not transferable or assignable by the parties
      hereto.

     

    16.    Counterparts

     

    This
      Subscription Agreement may be executed in counterparts, each of which shall
      be
      deemed to be an original and all of which shall constitute one and the same
      document. The Corporation and the Agent shall be entitled to rely upon delivery
      by facsimile of an executed copy of this Subscription Agreement and acceptance
      by the Corporation of such facsimile copies will be legally effective to create
      a valid and binding agreement between the Purchaser and the Corporation in
      accordance with the terms hereof.

     

    [Remainder
      of page intentionally left blank]

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    16.    Subscription
      Particulars

     

    The
      aggregate number of Shares subscribed for is                          .

     

    The
      Shares are to be registered in the name of: 

     

     

      
        

      

    

    (if
      space
      is insufficient, attach a list)

     

    The
      certificate(s) representing the Shares are to be delivered to:

     

    
      

    

     

    
      

    

     

    at
      its
      office at:

     

    
      
        

      

       

        
          

        

      

    

     

    Contact
      Name and Number:

     

    
      
        

      

    

     

     

    If
      the
      Purchaser is signing as agent for a principal and not as agent for a fully
      managed account, the name and address of the beneficial purchaser
      is:

     

      
        

      

    

     

    
      
        

      

    

    (if
      space
      is insufficient, attach a list)

     

    DATED
      at
                               
      this
           
      day of
                   ,
      2007.

    

     

    
      
        

      

    

    Name
      of
      Purchaser (please type or print)

     

     

    By:

    
      
        

      

    

    (Signature
      of Authorized Representative)

     

     

      
        

      

    

    (Name
      of
      Person Signing)

     

     

      
        

      

    

    Office
      or
      Title

     

     

      
        

      

    

     

      
        

      

    

    Address
      of Purchaser

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    ACCEPTANCE

    

    

    

    This
      Subscription Agreement is hereby accepted and agreed to by SyntheMed,
      Inc.

    

    

    DATED
      at
      Iselin, New Jersey, the ____ day of _____________ 2007.

    

    

    SYNTHEMED,
      INC.

     

    By:

    
      
        

      

    

    Authorized
      Signing Officer

     

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    Schedule
      1

    ACCREDITED
      INVESTOR

    

    An
      "accredited investor" is defined as:

    

    
      	
              1.

            	
              A
                bank as defined in Section 3(a)(2) of the Securities Act, or a savings
                and
                loan association or other institution as defined in Section 3(a)(5)(A)
                of
                the Securities Act, whether acting in its individual or fiduciary
                capacity; a broker or dealer registered pursuant to Section 15 of
                the
                Securities Exchange Act of 1934; an insurance company as defined
                in
                Section 2(13) of the Securities Act; an investment company registered
                under the Investment Company Act of 1940 or a business development
                company
                as defined in Section 2(a)(48) of that Act; a Small Business Investment
                Company licensed by the United States Small Business Administration
                under
                Section 301(c) or (d) of the Small Business Investment Act of 1958;
                a plan
                established and maintained by a state, its political subdivisions,
                or any
                agency or instrumentality of a state or its political subdivisions,
                for
                the benefit of its employees, if such plan has total assets in excess
                of
                $5,000,000; an employee benefit plan within the meaning of the Employee
                Retirement Income Preferred Stock Act of 1974 ("ERISA"), if the investment
                decision is made by a plan fiduciary, as defined in Section 3(21)
                of
                ERISA, which is either a bank, savings and loan association, insurance
                company, or registered investment advisor, or if the employee benefit
                plan
                has total assets in excess of $5,000,000 or, is a self-directed plan,
                with
                the investment decisions made solely by persons that are accredited
                investors;

            

    

     

    
      	
              2.

            	
              A
                private business development company as defined in Section 202(a)(22)
                of
                the Investment Advisers Act of
                1940;

            

    

     

    
      	
              3.

            	
              An
                organization described in Section 501(c)(3) of the Internal Revenue
                Code,
                corporation, Massachusetts or similar business trust, or partnership,
                not
                formed for the specific purpose of acquiring the securities, with
                total
                assets in excess of $5,000,000;

            

    

     

    
      	
              4.

            	
              A
                director or executive officer of the
                Corporation;

            

    

     

    
      	
              5.

            	
              A
                natural person whose individual net worth, or joint net worth with
                that
                person's spouse, at the time of such person's investment exceeds
                $1,000,000;

            

    

     

    
      	
              6.

            	
              A
                natural person who had an individual income in excess of $200,000
                in each
                of the two most recent years or joint income with that person's spouse
                in
                excess of $300,000 in each of those years and which has a reasonable
                expectation of reaching the same income level in the current
                year;

            

    

     

    
      	
              7.

            	
              A
                trust with total assets in excess of $5,000,000, not formed for the
                specific purpose of acquiring the securities, whose purchase is directed
                by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation
                D; or

            

    

     

    
      	
              8.

            	
              An
                entity in which all of the equity owners are "accredited investors"
                under
                one or more of the foregoing
                categories.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Schedule
      2

    NON-US
      PERSON REPRESENTATIONS

    

     

    Each
      Purchaser who is not a US Person represents and warrants to the Corporation
      that:

     

    
      	1.	
              Purchaser
                is neither a U.S. Person (as defined in Rule 902(o) of Regulation
                S
                promulgated under the Securities Act) nor is Purchaser committing
                to
                purchase securities for the account of a U.S. Person or for resale
                in the
                United States and the undersigned confirms that the securities have
                not
                been offered to the Purchaser in the United
                States.

            

    

     

    
      	2.	
              Purchaser:

            

    

     

    
      	
            	(a)	
              is
                not a "distributor" of securities as such term is defined in Regulation
                S
                nor a dealer in securities, and

            

    

     

    
      	
            	(b)	
              acknowledges
                that it has not engaged, and agrees that it will not engage during
                any
                period in which US securities laws prohibit such activity, in any
                hedging
                transactions with regard to the Corporation’s Common
                Stock.

            

    

     

    
      	3.	
              The
                investment commitment by the Purchaser does not contravene any of
                the
                applicable securities legislation in the jurisdiction in which the
                Purchaser is resident and does not
                trigger:

            

    

     

    
      	
            	(a)	
              any
                obligation to prepare and file a prospectus or similar document,
                or any
                other report with respect to such purchase,
                and

            

    

     

    
      	
            	(b)	
              any
                registration or other obligation on the part of Purchaser, the Corporation
                or the Agent.SYNTHEMED,
      INC.

    INVESTOR
      RIGHTS AGREEMENT

    

    This
      Investor Rights Agreement (this “Agreement”) is made and entered into by and
      among SyntheMed, Inc., a Delaware corporation (the “Corporation”), and the
      investors listed on the signature pages hereto (the “Investors”), as of the date
      of execution by the Corporation.

     

    RECITALS

     

    WHEREAS
      the
      Corporation desires the Investors to purchase up to 6,000,000 shares of Common
      Stock of the Corporation (the “Shares”) at a purchase price of $1.00 (US) per
      share (the “Offering”) pursuant to individual subscription agreements in like
      form entered into with each Investor (collectively, the “Subscription
      Agreement”);

     

    AND
      WHEREAS
      as an
      inducement for the Investors to enter into the Subscription Agreement, the
      Corporation desires to enter into this Agreement with the
      Investors;

     

    NOW
      THEREFORE
      in
      consideration of the mutual covenants set forth herein and other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto, intending to be legally bound, hereby agree
      as
      follows:

     

    1.    DEFINITIONS.

     

    
      	 	
              (a)

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

            

    

     

    
      	 	
              (b)

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

            

    

     

    
      	 	
              (c)

            	
              “Final
                Closing” means
                the date on which the full amount of the Offering is sold or the
                earlier
                termination of the Offering period as determined by mutual agreement
                of
                the Corporation and the placement
                agent.

            

    

     

    
      	 	
              (d)

            	
              “Holder”
                means any person owning of record Registrable Securities or securities
                convertible, exchangeable or exercisable into Registrable Securities
                that
                have not been sold in a public offering or sold pursuant to Rule
                144
                promulgated under the Securities Act or any assignee of record of
                such
                Registrable Securities to whom rights under this Agreement have been
                duly
                assigned in accordance with this
                Agreement.

            

    

     

    
      	 	
              (e)

            	
              “register,”
                “registered” and“registration”
                refer to a registration effected by preparing and filing a registration
                statement in compliance with the Securities Act, and the declaration
                or
                ordering of effectiveness of such registration
                statement.

            

    

     

    
      	 	
              (f)

            	
              “Registrable
                Securities”
                means: (i) the Shares and any shares of Common Stock issued to the
                placement agent in connection with the Offering or underlying warrants
                (“Broker Warrants”) issued to the placement agent in connection with the
                Offering and (ii) any shares of Common Stock or other securities
                issued
                in

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    connection
      with any stock split, stock dividend, recapitalization, reorganization, merger,
      sale of assets or similar event in respect of the foregoing securities;
      excluding in all cases, however, any securities that would otherwise be
      Registrable Securities that have been sold (i) by a person in a transaction
      in
      which rights under this Agreement are not assigned in accordance with this
      Agreement, (ii) in a public offering or (iii) pursuant to Rule 144 promulgated
      under the Securities Act. Notwithstanding the foregoing, shares of Common Stock
      issued or issuable pursuant to exercise of the Broker Warrants shall be deemed
      Registrable Securities only for so long, and for such purposes, as Shares
      continue to be Registrable Securities.

     

    
      	 	
              (g)

            	
              “Registration
                Expenses”
                means all expenses incurred by the Corporation in complying with
                Section
                2.1 hereof, including, without limitation, all registration and filing
                fees, printing expenses, fees and disbursements of counsel and accountants
                for the Corporation, reasonable fees and expenses of one counsel
                for all
                the Holders, blue sky fees and expenses and the expense of any special
                audits incident to or required by any such registration (but excluding
                the
                compensation of regular employees of the Corporation, which shall
                be paid
                in any event by the Corporation).

            

    

     

    
      	 	
              (h)

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

            

    

     

    2.    REGISTRATION.

     

    2.1 Registration.
      Within
      30 days following the Final Closing, the Corporation will file with the SEC
      a
      registration statement on Form S-3 (or such other form as the Corporation may
      then be eligible to utilize) covering resale of the Registrable Securities
      by
      the Holders thereof, together with any other securities entitled to be included
      in such registration statement pursuant to contractual rights of the holders
      thereof; provided, however, that the Corporation shall not be obligated to
      effect, or take any action to effect, any such registration pursuant to this
      Section 2 in any particular jurisdiction in which the Corporation would be
      required to execute a general consent to service of process in effecting such
      registration, unless the Corporation is already subject to service in such
      jurisdiction and except as may be required by the Securities Act or applicable
      rules or regulations thereunder.

     

    2.2 Expenses
      of Registration.
      All
      Registration Expenses incurred in connection with the registration pursuant
      to
      Section 2.1 shall be borne by the Corporation.

     

    2.3 Obligations
      of the Corporation.
      In
      connection with the registration pursuant to Section 2.1, the Corporation shall,
      as expeditiously as reasonably possible:

     

    (a) Prepare
      and file with the SEC a registration statement with respect to the Registrable
      Securities (such filing to occur not later than the time referred to in Section
      2.1) and use its best efforts to cause such registration statement to become
      effective on the earlier to occur of (i) 90 days following the final closing
      of
      the Offering or, in the case of SEC review, 120 days following the Final Closing
      and (ii) five days following the date of SEC clearance to request effectiveness
      of the registration statement, and keep such registration statement effective
      and the related prospectus current until the distribution is completed, but
      not
      more than two years or such earlier date as any of the Registrable Securities
      become eligible for sale pursuant to Rule 144(k)

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    under
      the
      Securities Act, provided that such two year period shall be extended for a
      period of time equal to the period the Holder refrains from selling any
      Registrable Securities included in such registration statement due to
      circumstances described in Section 2.3(f).

     

    (b) Prepare
      and file with the SEC such amendments and supplements to such registration
      statement and the prospectus used in connection with such registration statement
      as may be necessary to comply with the provisions of the Securities Act with
      respect to the disposition of all securities covered by such registration
      statement.

     

    (c) Furnish
      to the Holders such number of copies of a prospectus, including a preliminary
      prospectus, in conformity with the requirements of the Securities Act, and
      all
      amendments and supplements thereto, and such other documents as they may
      reasonably request in order to facilitate the disposition of the Registrable
      Securities owned by them that are included in such registration.

     

    (d) Use
      its
      best efforts to register and qualify the securities covered by such registration
      statement under such other securities or Blue Sky laws of such jurisdictions
      as
      shall be reasonably requested by the Holders, provided, however, that the
      Corporation shall not be required in connection therewith or as a condition
      thereto to qualify to do business or to file a general consent to service of
      process in any such states or jurisdictions unless the Corporation is already
      subject to service in such jurisdiction and except as may be required by the
      Securities Act or applicable rules or regulations thereunder.

     

    (e) [Intentionally
      omitted].

     

    (f) Notify
      each Holder of Registrable Securities covered by such registration statement
      at
      any time when a prospectus relating thereto is required to be delivered under
      the Securities Act if such registration statement, as then in effect, includes
      an untrue statement of a material fact or omits to state a material fact
      required to be stated therein or necessary to make the statements therein not
      misleading in the light of the circumstances then existing and, following such
      notification, promptly deliver to each Holder copies of all amendments or
      supplements referred to in paragraphs (b) and (c) of this Section
      2.3.

     

    (g) Furnish,
      at the request of Holders of a majority of the Registrable Securities (other
      than the Holders of Broker Warrants), on the date that the registration
      statement becomes effective, (i) an opinion, dated as of such date, of the
      counsel representing the Corporation for the purposes of such registration,
      in
      form and substance as is customarily given to underwriters in an underwritten
      public offering addressed to the Holders and (ii) a “comfort” letter dated as of
      such date, from the independent certified public accountants of the Corporation,
      in form and substance as is customarily given by independent certified public
      accountants to underwriters in an underwritten public offering and reasonably
      satisfactory to Holders of a majority of the Registrable Securities (other
      than
      Holders of Broker Warrants), addressed to the Holders.

     

    (h) Use
      its
      best efforts to list the Registrable Securities covered by such registration
      statement with any securities exchange or interdealer quotation system on which
      the Common Stock is then listed or quoted.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    (i) Make
      available for inspection by each seller of Registrable Securities, and any
      attorney, accountant or other agent retained by such seller (an “Advisor”), all
      financial and other records, pertinent corporate documents and properties of
      the
      Corporation, and cause the Corporation’s officers, directors and employees to
      supply all information reasonably requested by any such seller, attorney,
      accountant or agent in connection with such registration statement. Such seller
      will keep, and will cause its Advisors to keep, such information confidential
      subject to Section 4.14.

     

    2.4 Furnish
      Information.
      It
      shall
      be a condition precedent to the obligations of the Corporation to take any
      action pursuant to Section 2.1 that the selling Holders shall timely furnish
      to
      the Corporation such information regarding themselves, the Registrable
      Securities and other securities held by them, and the intended method of
      disposition of such securities as shall be required to effect the registration
      of Registrable Securities.

     

    2.5 Indemnification.
      In
      connection with the registration pursuant to Section 2.1:

     

    (a) By
      the Corporation.
      To the
      extent permitted by law, the Corporation will indemnify and hold harmless each
      Holder, the partners, members, officers and directors of each Holder, and each
      person, if any, who controls such Holder within the meaning of the Securities
      Act against any losses, claims, damages, or liabilities (joint or several)
      to
      which they may become subject under the Securities Act, the Exchange Act or
      other federal or state law, insofar as such losses, claims, damages, or
      liabilities (or actions in respect thereof) arise out of or are based upon
      any
      of the following statements, omissions or violations (collectively a
“Violation”):

     

    (i) any
      untrue statement or alleged untrue statement of a material fact contained or
      incorporated by reference in such registration statement, including any
      preliminary prospectus or final prospectus contained therein or any amendments
      or supplements thereto;

     

    (ii) the
      omission or alleged omission to state therein a material fact required to be
      stated therein, or necessary to make the statements therein not misleading,
      or

     

    (iii) any
      violation or alleged violation by the Corporation of the Securities Act, the
      Exchange Act, any federal or state securities law or any rule or regulation
      promulgated under the Securities Act, the Exchange Act or any federal or state
      securities law in connection with the offering covered by such registration
      statement; and the Corporation will reimburse each such Holder, partner, member,
      officer or director, underwriter or controlling person for any legal or other
      expenses reasonably incurred by them, as incurred, in connection with
      investigating or defending any such loss, claim, damage, liability or action;
      provided, however, that the indemnity agreement contained in this subsection
      shall not apply to amounts paid in settlement of any such loss, claim, damage,
      liability or action if such settlement is effected without the consent of the
      Corporation (which consent shall not be unreasonably withheld), nor shall the
      Corporation be liable in any such case for any such loss, claim, damage,
      liability or action to the extent that it arises out of or is based upon a
      Violation which occurs in reliance upon and in conformity with written
      information and expressly stated to be for use in connection with such
      registration by such Holder, partner, member, officer, director, underwriter
      or
      controlling person of such Holder.

     

    (b) By
      Selling Holders.
      To the
      extent permitted by law, each selling Holder will, severally and not jointly,
      if
      Registrable Securities held by such Holder are included in the

     

    
      
         

      

      
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    securities
      as to which such registration is being effected, indemnify and hold harmless
      the
      Corporation, each of its directors, each of its officers who have signed the
      registration statement, each person, if any, who controls the Corporation within
      the meaning of the Securities Act, any underwriter (as defined in the Securities
      Act) and any other Holder selling securities under such registration statement
      or any of such other Holder’s partners, members, directors or officers or any
      person who controls such underwriter or other Holder within the meaning of
      the
      Securities Act or the Exchange Act, against any losses, claims, damages or
      liabilities (joint or several) to which the Corporation or any such director,
      officer, controlling person, underwriter or other such Holder, or a member,
      partner, director, officer or controlling person of such underwriter or other
      Holder may become subject under the Securities Act, the Exchange Act, any
      federal or state securities law or any rule or regulation promulgated under
      the
      Securities Act, the Exchange Act or any federal or state securities law in
      connection with the offering covered by such registration statement, insofar
      as
      such losses, claims, damages or liabilities (or actions in respect thereto)
      arise out of or are based upon any Violation, in each case to the extent (and
      only to the extent) that such Violation occurs in reliance upon and in
      conformity with written information furnished by such Holder by an instrument
      duly executed by such Holder and stated to be specifically for use in such
      registration; and each such Holder will reimburse any legal or other expenses
      reasonably incurred by the Corporation or any such director, officer,
      controlling person, underwriter or other Holder, partner, member, officer,
      director or controlling person of such other Holder or underwriter in connection
      with investigating or defending any such loss, claim, damage, liability or
      action; provided, however, that the indemnity agreement contained in this
      subsection shall not apply to amounts paid in settlement of any such loss,
      claim, damage, liability or action if such settlement is effected without the
      consent of the Holder, which consent shall not be unreasonably withheld; and
      provided further, that the total amounts payable in indemnity by a Holder under
      this Section 2.5(b) in respect of any Violation shall not exceed the net
      proceeds received by such Holder in the registered offering out of which such
      Violation arises.

     

    (c) Notice.
      Promptly after receipt by an indemnified party of notice of the commencement
      of
      any action (including any governmental action), such indemnified party will,
      if
      a claim in respect thereof is to be made against any indemnifying party under
      this Section 2.5, deliver to the indemnifying party a written notice of the
      commencement thereof and the indemnifying party shall have the right to
      participate in, and, to the extent the indemnifying party so desires, jointly
      with any other indemnifying party similarly noticed, to assume the defense
      thereof with counsel mutually satisfactory to the parties; provided, however,
      that an indemnified party shall have the right to retain its own counsel, with
      the fees and expenses to be paid by the indemnifying party, if the defendants
      include both the indemnifying party and the indemnified party and the
      indemnified party shall have reasonably concluded that there may be reasonable
      defenses available to it which are different from or additional to those
      available to the indemnifying party or if the interests of the indemnified
      party
      reasonably may be deemed to conflict with the interests of the indemnifying
      party. The failure to deliver written notice to the indemnifying party within
      a
      reasonable time of the commencement of any such action, if materially
      prejudicial to its ability to defend such action, shall relieve such
      indemnifying party of any liability to the indemnified party under this Section
      2.5, but the omission so to deliver written notice to the indemnifying party
      will not relieve it of any liability that it may have to any indemnified party
      otherwise than under this Section 2.5.

     

    
      
         

      

      
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    (d) Contribution.
      If the
      indemnification provided for in this Section 2.5 is unavailable to a party
      entitled to indemnification, then the indemnifying party shall contribute to
      the
      aggregate losses, claims, damages or liabilities of the indemnified party as
      is
      appropriate to reflect the relative fault of the indemnified party and the
      indemnifying party, as well as any other relevant equitable considerations.
      The
      relative fault of the indemnifying party and indemnified party shall be
      determined by reference to, among other things, whether any action in question,
      including any untrue or alleged untrue statement of a material fact or omission
      or alleged omission to state a material fact, has been made by, or relates
      to
      information supplied by, such indemnifying party or indemnified party, and
      the
      parties’ relative intent, knowledge, access to information and opportunity to
      correct or prevent such action; provided, however, that, in any such case,
      (1)
      no Holder shall be required to contribute any amount in excess of the public
      offering price of all Registrable Securities offered and sold by such Holder
      pursuant to such registration statement and (2) no person guilty of fraudulent
      misrepresentation (within the meaning of Section 11(f) of the Securities Act)
      shall be entitled to contribution from any person who was not guilty of such
      fraudulent misrepresentation.

     

    (e) Survival.
      The
      obligations of the Corporation and Holders under this Section 2.5 shall survive
      the completion of any offering of Registrable Securities in a registration
      statement.

     

    2.6 Remedy.
      If,
      regardless of the reason, the registration statement referred to in this Section
      2 is not declared effective by the Securities and Exchange Commission within
      six
      months of the Final Closing, the Corporation agrees to grant to the Holders
      registration rights with respect to the Registrable Securities on terms similar
      to the registration rights granted to investors in the Corporation’s Series C
      Convertible Preferred Stock and warrant financing in March 2003, subject
      to obtaining any consents required under agreements with existing holders of
      registration rights (and the Corporation agrees to use its best efforts to
      obtain any such required consents, it being understood that such efforts will
      not require the Corporation to provide any additional consideration to or for
      the benefit of such registration right holders).

     

    3.    LEGENDS.
      

     

    
      	
              (a)

            	
              The
                Holders understand that any certificates evidencing Registrable Securities
                shall not be endorsed with a restrictive legend except under the
                circumstances referred to in the Subscription Agreement Each Holder
                agrees
                that it will comply with the prospectus delivery requirements of
                the
                Securities Act as applicable to it in connection with sales of Registrable
                Securities pursuant to the Registration Statement and shall sell
                its
                Registrable Securities in accordance with the plan of distribution
                set
                forth in the prospectus included in the Registration Statement. Each
                Holder further agrees that, upon receipt of a notice from the Corporation
                of the occurrence of any event the occurrence of which causes the
                prospectus contained in the Registration Statement to become stale
                or no
                longer effective, such Holder will discontinue disposition of such
                Registrable Securities under the Registration Statement until such
                Holder
                is advised in writing by the Corporation that the use of the prospectus,
                or amended prospectus, as applicable, may be resumed. The Corporation
                may
                provide appropriate stop orders to enforce the provisions of this
                paragraph. Each Holder, severally and not jointly with the other
                Holders,
                agrees that the issuance without a restrictive legend or removal
                of the
                restrictive legend from certificates representing Registrable Securities
                as set forth in the Subscription Agreement is predicated upon the
                Corporation’s reliance that the Holder will comply with
                the

            

    

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    provisions
      of this subsection. Each Holder, severally and not jointly with the other
      Holders, agrees to indemnify and hold harmless the Corporation and its transfer
      agent and each of their respective directors, officers, employees and agents
      against any and all losses, claims, damages or liabilities (joint or several)
      (including reasonable attorneys’ fees) to which the Corporation or any such
      other person may become subject in connection with or as a result of a breach
      by
      such Holder of the provisions of this subsection. Both the Corporation and
      the
      Corporation’s transfer agent and their respective directors, officers, employees
      and agents may rely on this subsection.

     

    4.    MISCELLANEOUS.

     

    4.1. Successors
      and Assigns.
      Except
      as otherwise expressly provided herein, the terms and conditions of this
      Agreement shall inure to the benefit of and be binding upon the respective
      successors and permitted transferees and permitted assigns of the
      parties.

     

    4.2. Governing
      Law.
      This
      Agreement shall be governed in all respects by the laws of the State of New
      York
      as applied to contracts made and to be performed entirely within that state
      between residents of that state.

     

    4.3. Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original, and all of which together shall constitute one
      instrument.

     

    4.4. Titles
      and Subtitles.
      The
      titles of the paragraphs and subparagraphs of this Agreement are used for
      convenience only and are not to be considered in construing or interpreting
      this
      Agreement.

     

    4.5. Stock
      Splits, etc.
      All
      share numbers used in this Agreement are subject to adjustment in the case
      of
      any stock split, reverse stock split, combination or similar
      events.

     

    4.6. Notices.
      Any
      notice required or permitted to be given to a party pursuant to the provisions
      of this Agreement shall be in writing and shall be effective on (a) the date
      of
      delivery in person, or the date of delivery by facsimile with confirmation
      receipt, (b) the business day after deposit with a nationally-recognized courier
      or overnight service, for United States deliveries or (c) five (5) business
      days
      after deposit in the United States mail by registered or certified mail for
      United States deliveries. All notices not delivered personally or by facsimile
      will be sent with postage and other charges prepaid and properly addressed
      to
      the party to be notified at the address set forth below such party’s signature
      on this Agreement or at such other address as such party may designate by ten
      (10) days advance written notice to the other parties hereto. All notices for
      delivery outside the United States will be sent by facsimile, or by nationally
      recognized courier or overnight service. Any notice given hereunder to more
      than
      one person will be deemed to have been given, for purposes of counting time
      periods hereunder, on the date given to the last party required to be given
      such
      notice. Notices to the Corporation will be marked to the attention of the
      President, with a copy to Keith Moskowitz, Eilenberg Krause & Paul LLP, 11
      East 44th
      Street,
      19th
      Floor,
      New York, NY 10017. Notices shall be sent to the addresses on the signature
      pages hereto, or such other addresses as a party may provide to the other
      parties from time to time.

     

    
      
         

      

      
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    4.7. Attorneys’
      Fees.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and necessary disbursements in addition to any other relief to
      which
      such party may be entitled.

     

    4.8. Amendments
      and Waivers.
      Any
      term of this Agreement may be amended and the observance of any term of this
      Agreement may be waived (either generally or in a particular instance and either
      retroactively or prospectively), only with the written consent of the party
      against whom enforcement of such amendment or waiver is sought; provided,
      however that with respect to any Holder, the consent of the Holders of more
      than
      sixty-six and two-thirds percent (662/3%)
      of the
      Registrable Securities (other than Broker Warrants) shall be sufficient to
      bind
      any and all Holders.

     

    4.9. Severability.
      If any
      provision of this Agreement is held to be unenforceable under applicable law,
      then such provision shall be excluded from this Agreement and the balance of
      this Agreement shall be interpreted as if such provision was so excluded and
      shall be enforceable in accordance with its terms.

     

    4.10. Entire
      Agreement.
      This
      Agreement and the Subscription Agreement constitute the full and entire
      understanding and agreement between the parties with respect to the subject
      matter hereof and supersede all prior negotiations, correspondence, agreements,
      understandings, duties or obligations among the parties with respect to the
      subject matter hereof.

     

    4.11. Further
      Assurances.
      From
      and after the date of this Agreement, upon the request of a party, the other
      parties shall execute and deliver such instruments, documents or other writings
      as may be reasonably necessary or desirable to confirm and carry out and to
      effectuate fully the intent and purposes of this Agreement.

     

    4.12. Assignment.
      Rights
      under this Agreement may be assigned in connection with any transfer or
      assignment of Registrable Securities provided that: (a) such transfer may
      otherwise be effected in accordance with applicable securities laws, and (b)
      such other party agrees in writing with the Corporation to be bound by all
      of
      the provisions of this Agreement to the same extent as the
      transferor.

     

    4.13. Changes
      in Stock.
      If, and
      as often as, there is any change in the Common Stock by way of a stock split,
      stock dividend, combination or reclassification, or through a merger,
      consolidation, reorganization or recapitalization, or by any other means,
      appropriate adjustment shall be made to the provisions hereof so that the rights
      granted hereby shall continue with respect to the Common Stock as so
      changed.

     

    4.14. Confidentiality.
      Information related to the terms and conditions of the Offering, as well as
      all
      information contained in the Subscription Agreement (except information relating
      solely to an Investor) and instruments and agreements delivered in connection
      therewith, shall be deemed confidential and shall not be disclosed by the
      Investor to any person unless and until such information becomes generally
      available to the public other than by disclosure in violation of this Agreement.
      All other information that has been designated by the Corporation as
“confidential” shall likewise be deemed confidential and not disclosed by the
      Investor to any person unless and until such information (i) is or becomes
      generally available to the public other than by disclosure in violation of
      this
      Agreement, (ii) was properly within such Investor’s

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    possession
      prior to its being furnished by the Corporation to such Investor, or (iii)
      becomes available to such Investor through disclosure by third parties who
      have
      the right to disclose such information

     

    [Remainder
      of page intentionally left blank].

     

     

    
      
         

      

      
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    INVESTOR
      RIGHTS AGREEMENT

    SIGNATURE
      PAGE 1

     

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Investor Rights
      Agreement.

     

     

    SYNTHEMED,
      INC.

     

     

    By:

    
      
        

      

    

    Robert
      Hickey

    President
      and CEO

    Address:  
      200 Middlesex Essex Turnpike

                      
      Suite 210

                      
      Iselin, New Jersey 08830

     

    Dated:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    INVESTOR
      RIGHTS AGREEMENT

    SIGNATURE
      PAGE 2

     

    

     

    

     

    
      	
              By: 
                _______________________________

              Name:

              Title:

              Address

               

               

            
	
              By: 
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              Name:

              Title:

              Address

               

               

            
	
              By: 
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              Name:

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              Address

               

               

               

            
	
              By: 
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              Name:

              Title:

              Address

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    INVESTOR
      RIGHTS AGREEMENT

    SIGNATURE
      PAGE 3

     

     

    
      	
              By: 
                _______________________________

              Name:

              Title:

              Address

               

               

               

            
	
              By: 
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              Name:

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              By: 
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              By: 
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