Document:

AGENCY
      AGREEMENT

    

    August
      14, 2007

    

    SyntheMed,
      Inc.

    200
      Middlesex Essex Turnpike, Suite 210

    Iselin,
      New Jersey 08830

    United
      States

    

    
      	Attention:	
              Mr.
                Robert P. Hickey

            

    

    President
      and Chief Executive Officer

    

    Dear
      Sirs:

    

    Re:     
      Offering
      of Shares

    

    Clubb
      Capital Limited (the “Agent”), understands that SyntheMed, Inc. (the
“Corporation”), a Delaware corporation, proposes to issue to investors secured
      by the Agent, up to 6,000,000 shares (the “Shares”) of the Corporation’s Common
      Stock, par value $0.001 per share (“Common Stock”). The Shares shall be issued
      and sold at a price of $1.00 per Share (the “Issue Price”). The Shares shall be
      sold pursuant to a subscription agreement, as may be supplemented upon mutual
      agreement of the Corporation and the Agent the form of which is attached hereto
      as Appendix I (the “Subscription Agreement”). The offering of the Shares (the
“Offering”) will be consummated in one or more closings, the final closing to
      occur on or about August 31, 2007, or such other date mutually agreed to by
      the
      Corporation and the Agent (the date of each closing being referred to herein
      as
      a “Closing Date”). There is no minimum number of Shares being offered in the
      Offering. 

    

    
      	
              1.

            	
              Appointment

            

    

     

    The
      Corporation hereby appoints the Agent as its non-exclusive agent and the Agent
      accepts the appointment and agrees to act on a “best efforts” basis as a
      non-exclusive agent of the Corporation to secure investors for the issuance
      of
      the Shares by way of private placement to institutional and other sophisticated
      investors or other eligible investors subject to the terms and conditions and
      in
      reliance upon the representations, warranties and covenants of the Corporation
      set out in this Agreement.

    

    The
      Agent
      shall be entitled to retain sub-agents selected by it to participate in the
      soliciting of offers to purchase the Shares, provided that the Agent receives
      from each such sub-agent its agreement to be bound by the obligations of the
      Agent hereunder prior to any such appointment. The fees payable to such
      sub-agents shall be the responsibility and for the account of the
      Agent.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    
      	
              2.

            	
              Sales
                Restrictions

            

    

     

    The
      Agent
      represents and agrees that it will comply with the restrictions on offers and
      sales of the Shares set forth in Schedule “A” hereto, as well as the other
      provisions thereof, all of which are hereby incorporated by reference herein
      and
      form a part hereof.

     

    
      	
              3.

            	
              Commission
                and Broker Warrant

            

    

     

    In
      consideration of the services rendered and to be rendered by the Agent in acting
      as agent of the Corporation on a best efforts basis to secure investors for
      the
      issuance of the Shares, the Corporation agrees to pay to the Agent on the
      Closing Date a commission (the “Commission”) equal to 7% of that portion of
      the gross proceeds of the Shares sold on the Closing Date to purchasers secured
      by the Agent, payable at the election of the Agent in either cash or Shares
      at
      the Issue Price (“Commission Shares”) or a combination of the two. 

    

    In
      further consideration of the services rendered and to be rendered by the Agent
      described above, the Corporation agrees to issue to the Agent for no additional
      consideration, a warrant (the “Broker Warrant”) to purchase an aggregate number
      of Shares equal to 7% of the aggregate number of Shares issued on the Closing
      Date to purchasers secured by the Agent. The Broker Warrant shall have a term
      of
      four (4) years after the date of issue and shall be exercisable to acquire
      Shares at a price of $1.10 per Share. Any Commission payable or Broker Warrant
      issuable to the Agent may, at the direction of the Agent, be issued to any
      subagents retained by the Agent in accordance with this Agreement.

    

    If
      for
      any reason the Offering does not close and within a three (3) year period after
      termination of the Offering the Corporation raises funding through one or more
      investors introduced to the Corporation for the first time by the Agent (“Agent
      Investors”), the Agent shall be entitled to the Commission and Broker Warrants
      in respect thereof as if the Offering had not been terminated and the gross
      proceeds of sale raised in such financing(s) had been raised under the Offering.
      The Agent will after the Closing Date promptly provide the Corporation with
      a
      list of Agent Investors.

    

    
      	
              4.

            	
              Closing

            

    

     

    
      	
              (a)

            	
              The
                issuance of the Shares shall 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 the Closing Date.

            

    

     

    
      	
              (b)

            	
              On
                or prior to each Closing Date, the Agent shall provide to the Corporation
                a subscription agreement from each purchaser of Shares (a “Purchaser”) who
                is to acquire Shares on such Closing Date, together with a selling
                stockholder questionnaire. Purchasers shall be required to complete
                and
                sign the form of Subscription Agreement attached hereto as Appendix
                I,
                together with a selling stockholder
                questionnaire.

            

    

     

    
      	
              (c)

            	
              At
                the Closing Time on each Closing Date, upon satisfaction of the conditions
                contained herein, the Agent shall pay or cause payment to be made
                of the
                net purchase price of the Shares sold by the Agent in United States
                funds
                by wire transfer to such bank and account as may be designated by
                the
                Corporation, or in such other manner as may be agreed with the
                Corporation, such net purchase price to be equal to the aggregate
                Issue
                Price of the Shares sold by the Agent less the cash portion of the
                Commission (if the Agent elects to receive all or a part thereof
                in cash)
                and the amount in reimbursement of expenses referred to in section
                8
                hereof. Such payment and delivery shall be made
                against:

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    
      	 	
              (i)

            	
              delivery
                by the Corporation to its transfer agent of instructions to issue
                certificates representing (A) the Shares to be issued on the Closing
                Date
                registered in such name or names as are directed in the Subscription
                Agreements and (B) the Commission
                Shares;

            

    

     

    
      	 	
              (ii)

            	
              delivery
                of the Commission and the Broker Warrants;
                and

            

    

     

    
      	 	
              (iii)

            	
              delivery
                to the Agent of copies of the certificates, opinions and other documents
                contemplated hereby. 

            

    

     

    
      	
              5.

            	
              Representations,
                Warranties and Covenants of the
                Corporation

            

    

     

    The
      Corporation represents, warrants and covenants to the Agent as of the date
      hereof and as of the Closing Date, which representations, warranties and
      covenants shall survive the Closing for a period of two years and any
      investigation made by the Agent, 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;

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    
      	
              (e)

            	
              the
                Corporation has all requisite power and authority to carry out its
                obligations under this Agreement, the
                Subscription Agreement,
                the investor rights agreement in the form set forth in Annex A-1
                to the
                Subscription Agreement (the “Investor Rights Agreement”) and the Broker
                Warrants;

            

    

     

    
      	
              (f)

            	
              this
                Agreement, the Subscription Agreement and the Investor Rights Agreement
                have been, and the Broker Warrants will be on the Closing Date, duly
                authorized, executed and delivered by the Corporation and constitute
                or on
                the Closing Date will constitute, legal, valid and binding obligations
                of
                the Corporation enforceable in accordance with their terms except
                that:
                (i) the enforcement hereof or thereof 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;

            

    

     

    
      	
              (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
                Corporation will reserve a sufficient number of shares of Common
                Stock
                unissued as may be required to be issued pursuant to the exercise
                of the
                Broker Warrants and, when issued and delivered upon such exercise,
                such
                shares of Common Stock will be duly and validly issued as fully paid
                and
                non-assessable shares in the capital stock of the Corporation;
                

            

    

     

    
      	
              (i)

            	
              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: (A) 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 (B) warrants issued to the
                Agent or
                its designees to purchase an aggregate of 1,475,000 shares of Common
                Stock;

            

    

     

    
      	
              (j)

            	
              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, the Subscription Agreement, any other Subscription
                Agreement for the purchase of Shares, the Investor Rights Agreement,
                the
                Broker Warrants, any indenture, mortgage, deed of trust or loan agreement
                (except as disclosed in the Corporation’s filings with the United States
                Securities and Exchange Commission), 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;

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

       

    

    
      	
              (k)

            	
              the
                issue and sale of the Shares, Broker Warrants, any shares of Common
                Stock
                on the exercise of the Broker Warrants 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;

            

    

     

    
      	
              (l)

            	
              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 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;

            

    

     

    
      	
              (m)

            	
              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
                clause 5(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;

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

       

    

    
      	
              (n)

            	
              the
                Corporation owns, is licensed 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;

            

    

     

    
      	
              (o)

            	
              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;

            

    

     

    
      	
              (p)

            	
              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;

            

    

     

    
      	
              (q)

            	
              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;
                

            

    

     

    
      	
              (r)

            	
              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,
                Broker
                Warrants or any shares of Common Stock on exercise of the Broker
                Warrants
                or the validity of any action taken or to be taken by the Corporation
                in
                connection with this Agreement, the Subscription Agreement or the
                Investor
                Rights Agreement or which would result in any material adverse change
                in
                the financial condition, results of operations, business or prospects
                of
                the Corporation;

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

       

    

    
      	
              (s)

            	
              the
                Corporation will permit the Agent and its legal counsel to conduct
                all due
                diligence which the Agent may reasonably require; and
                

            

    

     

    
      	
              (t)

            	
              during
                the period commencing with the engagement of the Agent on the date
                of this
                Agreement and ending on the date on which the full amount of the
                Offering
                is sold or the earlier date of termination of the Offering period
                (the
                “Final Closing Date”), the Corporation will inform the Agent in writing of
                the full particulars of any material change (actual, anticipated
                or
                threatened) in the assets, liabilities, business or the financial
                condition of the Corporation.

            

    

     

    
      	
              6.

            	
              Closing
                Conditions for the Benefit of the
                Agent

            

    

     

    The
      obligations of the Agent hereunder are subject to the satisfaction, on or before
      the Closing Time, of the following conditions:

    

    
      	
              (a)

            	
              the
                Corporation shall have complied with all of its obligations hereunder;
                the
                representations and warranties of the Corporation contained herein
                shall
                be true and correct in all material respects on and as of each Closing
                Date as if made on and as of such Closing Date; and the Agent shall
                have
                received on each Closing Date a certificate, dated as of such Closing
                Date
                and signed by one or more executive officers or directors of the
                Corporation on behalf of the Corporation and not in his or their
                personal
                capacity, to the foregoing effect;

            

    

     

    
      	
              (b)

            	
              the
                Agent shall have received on and as of each Closing Date the favourable
                opinion of the Corporation’s legal counsel on such matters as the Agent
                may reasonably request, including:

            

    

     

    
      	 	
              (i)

            	
              the
                Corporation is incorporated and validly existing under the laws of
                the
                jurisdiction in which it is incorporated and has the corporate power
                and
                authority to conduct its business as currently conducted by it and
                to
                issue and sell the Shares and Broker Warrants (the Shares and the
                Broker
                Warrants collectively referred to as the “Securities”) and to enter into
                and carry out its obligations under this Agreement, the Subscription
                Agreement, the Investor Rights Agreement, and the Broker Warrants;
                

            

    

     

    
      	 	
              (ii)

            	
              as
                to the Corporation's authorized and issued and outstanding
                capital;

            

    

     

    
      	 	
              (iii)

            	
              each
                of this Agreement, the Subscription Agreement, the Investor Rights
                Agreement and the Securities has been duly authorized, executed and
                delivered by the Corporation and, as applicable, is a legal, valid
                and
                binding obligation of the Corporation enforceable against it in accordance
                with its terms;

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

    

    
      	 	
              (iv)

            	
              all
                necessary action has been taken by the Corporation to authorize the
                issue
                of up to 6,000,000 Shares and the issue to the Agent of up to 196,000
                Commission Shares and Broker Warrants exercisable for up to 420,000
                shares
                of Common Stock and the Corporation has sufficient authorized but
                unissued
                shares of Common Stock as may be required to be issued upon the exercise
                of the Broker Warrant; 

            

    

     

    
      	 	
              (v)

            	
              the
                execution and delivery of this Agreement, the Subscription Agreement
                and
                the Investor Rights Agreement and the completion of the transactions
                contemplated hereby and thereby, the issue of the Shares, the Commission
                Shares and the Broker Warrant, and the issue of the shares of Common
                Stock
                issuable upon exercise of the Broker Warrant do not violate or constitute
                a breach of any provisions of the articles of incorporation or by-laws
                of
                the Corporation, any material contract or other material agreement
                to
                which it is a party or by which it is bound and of which such counsel
                is
                aware, or any New York, Delaware corporate or United States law or
                regulation (other than federal and state Securities or “blue sky” laws, as
                to which such counsel expresses no opinion in this
                paragraph);

            

    

     

    
      	 	
              (vi)

            	
              the
                Shares issued to the investors and the Commission Shares issued to
                the
                Agent have been duly and validly issued by the Corporation and are
                outstanding as fully paid and non-assessable shares in the capital
                of the
                Corporation and the shares of Common Stock issuable upon exercise
                of the
                Broker Warrant will, when issued in accordance with the respective
                terms
                and conditions of the Broker Warrant, be validly issued as fully
                paid and
                non-assessable shares in the capital of the
                Corporation;

            

    

     

    
      	 	
              (vii)

            	
              the
                certificates representing the Shares, Commission Shares and Broker
                Warrant
                comply with the requirements of the state laws and any federal laws
                of the
                United States applicable to the Corporation and such certificates
                have
                been duly and properly approved by the directors of the
                Corporation;

            

    

     

    
      	 	
              (viii)

            	
              the
                exemption from any consent, approval, authorization, order, registration,
                filing or qualification of or with any governmental authority of
                the
                United States (or New York or Delaware corporate authority) (other
                than
                federal and state securities or “blue sky” laws, as to which such counsel
                expresses no opinion in this paragraph) for the valid authorization,
                issue, sale and delivery of the Shares and Commission Shares and
                the
                shares of Common Stock issuable upon exercise of the Broker Warrant
                and
                the issue and delivery of the Broker Warrant; and 

            

    

     

    
      	 	
              (ix)

            	
              the
                exemption from registration of the issuance of the Shares, Commission
                Shares and Broker Warrant (including the shares of Common Stock underlying
                the Broker Warrant under the terms contemplated by the Subscription
                Agreement and the Agency
                Agreement).

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

       

    

    In
      giving
      the opinions contemplated above, legal counsel to the Corporation shall be
      entitled to rely, where appropriate, upon opinions of local counsel and, as
      to
      matters of fact, to rely upon the representations and warranties of Purchasers
      contained in the executed Subscription Agreements, a certificate of fact of
      the
      Corporation signed by those officers in a position to have knowledge of such
      facts and their accuracy, and certificates of such public officials and other
      persons as are necessary or desirable, and may qualify its opinion described
      in
      (iii) above with respect to (1) bankruptcy, insolvency, reorganization and
      other
      laws affecting the enforcement of creditors' rights generally and (2)
      limitations on the availability of equitable remedies such as specific
      performance, and its opinion may include other reasonable and standard opinion
      qualifications;

    

    
      	
              (c)

            	
              the
                Agent shall have received copies of the Subscription Agreement and
                the
                Investor Rights Agreement executed by the
                Corporation;

            

    

     

    
      	
              (d)

            	
              the
                Agent shall have received such other agreements, certificates, opinions
                or
                documents as the Agent may reasonably request;
                and

            

    

     

    
      	
              (e)

            	
              the
                fulfilment, to the reasonable satisfaction of counsel for the Agent,
                of
                all legal requirements to permit the offer and sale of the Shares
                and the
                issue of the Broker Warrant to the
                Agent.

            

    

     

    The
      foregoing conditions are included for the benefit of the Agent and may be waived
      in writing by the Agent, in whole or in part.

    

    Notwithstanding
      anything contained in this Agreement, the Agent may by written notice to the
      Corporation terminate this Agreement at any time before the Closing Time if,
      in
      the opinion of the Agent, there shall have been such a change in national or
      international financial, political or economic conditions or currency exchange
      rates or exchange controls as would in its reasonable view be likely to
      prejudice materially the success of the Offering or distribution of the Shares
      or if the Agent is not reasonably satisfied with the results of its due
      diligence review of the Corporation and, upon notice being given, the parties
      to
      this Agreement shall (except for the liability of the Corporation in relation
      to
      expenses as provided in section 8 and except for any liability arising before
      or
      in relation to such termination) be released and discharged from their
      respective obligations under this Agreement.

    

    
      	
              7.

            	
              Confidentiality
                

            

    

     

    The
      Agent
      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 Agency
      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 Agency Agreement, (ii) that such information was properly within
      the Agent’s possession prior to being furnished by the Corporation,
      (iii) that such information becomes available to the Agent on a
      non-confidential basis, such as through disclosure by third parties who have
      the
      right to disclose the information, and (iv) compelled by judicial process,
      provided that in the event of compulsion by judicial process the Agent will
      inform the Corporation promptly upon its receipt of notice of judicial process
      compelling such disclosure.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

       

    

    
      	
              8.

            	
              Expenses

            

    

     

    In
      further consideration of the agreement with the Agent herein contained, the
      Corporation covenants and agrees to reimburse the Agent, regardless of whether
      the Offering is completed, for the Agent’s reasonable fees and expenses
      including (without limitation) reasonable fees and expenses of Agent’s legal
      counsel, due diligence expenses, travel expenses and expenses incurred in
      connection with the holding of roadshows, investor meetings and presentations
      and printing and preparation of any offering documents and marketing materials
      (collectively the “Expenses”). The Corporation shall not be responsible for
      Agent’s legal expenses in excess of $35,000 (the “Cap”), it being understood
      that the Cap does not include legal expenses of the Agent’s counsel incurred
      after the Final Closing in connection with the anticipated resale registration
      of the securities issued in the Offering. The Corporation acknowledges and
      agrees that the Cap has been set based on the parties’ joint expectation of the
      amount of work involved to complete the Offering (based on, for example, an
      existing set of negotiated documents for an earlier financing for the
      Corporation in which the Agent participated), and the Corporation further
      acknowledges and agrees that in the event of unforeseen circumstances or delay
      in closing the Offering resulting in the greater than anticipated workload
      for
      the Agent’s legal counsel, such counsel’s reasonable fees and expenses in excess
      of the Cap shall also be paid by the Corporation. Expenses incurred up to each
      Closing Date shall be reimbursed, upon submission to the Corporation of
      invoices, receipts or similar proof of expenditure, at the Closing Time for
      such
      Closing Date and may be deducted by the Agent from the proceeds of sale of
      the
      Shares at such Closing. Expenses incurred after the Final Closing Date shall
      be
      reimbursed, upon submission to the Corporation of invoices, receipts or similar
      proof of expenditure, forthwith following the delivery to the Corporation of
      accounts in respect thereof.

    

    
      	
              9.

            	
              Indemnification

            

    

     

    
      	
              (a)

            	
              The
                Corporation agrees to indemnify and hold harmless the Agent and its
                respective directors, officers, shareholders, employees and agents
                from
                and against any and all losses, claims, damages, expenses and liabilities
                (collectively, “Losses”) arising out of, in relation to or in connection
                with (i) any breach or non-compliance by the Corporation of or with
                any of
                its covenants or representations and warranties herein, or (ii) the
                services provided by the Agent hereunder, except to the extent that
                any
                Losses result from the Agent’s negligence, recklessness or bad faith in
                performing such services or from the making by the Agent of any
                unauthorized representations with respect to the Corporation. This
                indemnity shall survive any termination of this
                Agreement.

            

    

     

    
      	
              (b)

            	
              In
                case any proceeding (including any governmental investigation) shall
                be
                instituted involving any indemnified party in respect of which indemnity
                may be sought pursuant to the preceding paragraph, such party shall
                promptly notify the Corporation in writing, and the Corporation,
                upon the
                request of such party, shall retain counsel reasonably satisfactory
                to
                such party to represent such party and any others the Corporation
                may
                designate in such proceeding and shall pay the fees and expenses
                of such
                counsel related to such proceeding.

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

       

    

    
      	
              (c)

            	
              In
                any such proceeding, such indemnified party shall have the right
                to retain
                its own counsel, but the fees and expenses of such counsel shall
                be at the
                expense of such party unless (i) the Corporation and such party shall
                have
                mutually agreed to the retention of such counsel or (ii) the named
                parties
                to any such proceeding (including any impleaded parties) include
                the
                Corporation and such party and representation of both parties by
                the same
                counsel is not appropriate as a result of differing interests between
                them. The Corporation shall not be liable for any settlement of any
                proceeding effected without its written consent, but if settled with
                such
                consent or if there be a final judgment or determination in respect
                of
                which the indemnity referred to in this Section 9 is claimed, the
                Corporation agrees to indemnify such party from and against any loss
                or
                liability by reason of such settlement, judgment or
                determination.

            

    

     

    
      	
              10.

            	
              Notices,
                etc.

            

    

     

    All
      notices hereunder may be hand delivered or given by facsimile or any other
      means
      of instantaneous written communication to such respective party hereto as
      follows (or at such other address as may hereafter be communicated by either
      party hereto to the other party):

    

    If
      to the
      Agent:

    

    Clubb
      Capital Limited

    35
      Piccadilly

    London
      W1J 0DW

    England

    

    Attention: Joerg
      Gruber

    

    Telephone: 44-20-7851-9081

    Facsimile: 44-20-7851-9088

    

    With
      a
      copy to:

    

    Blake,
      Cassels & Graydon LLP

    199
      Bay
      Street, Commerce Court West

    Toronto,
      ON M5L 1A9

    Canada

    

    Attention: John
      A.
      Kolada

    

    Telephone: (416)
      863-4171

    Facsimile: (416)
      863-2653

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

    

    If
      to the
      Corporation:

    

    SyntheMed,
      Inc.

    200
      Middlesex Essex Turnpike, Suite 210

    Iselin,
      New Jersey 08830

    United
      States

    

    Attention: Robert
      P.
      Hickey

    President
      and Chief Executive Officer

    

    Telephone: 732-404-1117

    Facsimile: 732-404-1118

    

    With
      a
      copy to:

    

    Eilenberg,
      Krause & Paul LLP

    11East
      44th
      Street,
      17th
      Floor

    New
      York,
      NY 10017

    

    Attention: Keith
      Moskowitz

    

    Telephone: 212-986-9700
      ext 335

    Facsimile: 212-986-2399

    

    
      	
              11.

            	
              Counterparts

            

    

     

    This
      Agreement may be signed and delivered in counterparts, and by facsimile, with
      the same effect as if the signatures thereto and hereto were upon the same
      instrument and delivered in person.

    

    
      	
              12.

            	
              Survival

            

    

     

    All
      representations, covenants, undertakings and indemnities herein will survive
      for
      a period of two years following each and every Closing Date, notwithstanding
      the
      completion of the transactions contemplated hereby and shall apply regardless
      of
      any investigation made by or on behalf of any indemnified party.

    

    
      	
              13.

            	
              Governing
                Law

            

    

     

    This
      Agreement shall be governed by and construed in accordance with the laws of
      England and Wales.

    

    
      	
              14.

            	
              Time

            

    

     

    Time
      is
      of the essence in this Agreement.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      	
              15.

            	
              Entire
                Agreement

            

    

     

    This
      Agreement constitutes the entire agreement between the parties pertaining to
      the
      subject matter of this Agreement and supersedes all prior agreements,
      understandings, negotiations and discussions, whether oral or written. There
      are
      no conditions, warranties, representations or other agreements between the
      parties in connection with the subject matter of this Agreement (whether oral
      or
      written, express or implied, statutory or otherwise) except as specifically
      set
      out in this Agreement.

    

    
      	
              16.

            	
              Miscellaneous

            

    

     

    This
      Agreement shall enure to the benefit of, and be binding upon, the successors
      of
      the Corporation and the Agent.

     

    
      	 	 	 
	 	
              Yours
                sincerely,

              

              CLUBB
                CAPITAL LIMITED

            
	 
 	 
 	 
 
	 	By:  	/s/
              Carlos Pittol
	 	
              

              Carlos
                Pittol

            
	 	Director

    

    

    Accepted
      and agreed as of the 14th day
      of
      August, 2007.

    

    

    SYNTHEMED,
      INC.

    

    

    
      	By: 
              	
              /s/
                Robert P. Hickey

              
                

              

              Robert
                P. Hickey

            

    

    President
      and Chief Executive Officer

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Schedule
      “A”

    

    Restrictions
      on Offers and Sales of the Shares

    

    1. The
      Agent
      represents and agrees that: (i) it has not offered or sold and, prior to the
      expiry of the period of six months after the Closing Date, will not offer or
      sell any Shares to persons in the United Kingdom except to persons whose
      ordinary activities involve them in acquiring, holding, managing or disposing
      of
      investments (as principal or agent) for the purposes of their businesses or
      otherwise in circumstances which have not resulted and will not result in an
      offer to the public in the United Kingdom within the meaning of the Public
      Offers of Securities Regulations 1995, (ii) it has complied and will comply
      with
      all applicable provisions of the Financial Services Act 1986 with respect to
      anything done by it in relation to the Shares in, from or otherwise involving
      the United Kingdom, and (iii) it has only issued or passed on and will only
      issue or pass on in the United Kingdom any document received by it in connection
      with the issue of the Shares to a person who is of a kind described in Article
      11(3) of the Financial Services Act 1986 (Investment Advertisements)
      (Exemptions) Order 1995 or is a person to whom such document may otherwise
      lawfully be issued or passed on; and (iv) it has complied and will comply with
      all applicable securities laws in the United Kingdom and elsewhere in Europe
      in
      connection with the Offering.

    

    2. The
      Agent
      acknowledges that the Shares including the shares of Common Stock issuable
      upon
      exercise of the Broker Warrant (collectively the “Securities”) have not been
      registered under the 1933 Act and may not be offered or sold within the United
      States or to, or for the account or benefit of, U.S. Persons (as defined in
      Rule
      902(o) of Regulation S promulgated under the Securities Act) except under an
      effective registration statement under the Securities Act, in accordance with
      Regulation S under the Securities Act or pursuant to an exemption from the
      registration requirements of the Securities Act. Offers and sales will be made
      in reliance on the exemption from registration provided by Section 4(2) of
      the
      Securities Act of 1933 and Rule 506 of Regulation D promulgated hereunder
      and/or in reliance on Regulation S under the Securities Act of 1933, and the
      Agent will comply with the provisions thereof in connection with the
      Offering.

    

    3. Terms
      with initial capital letters used but not defined in this Schedule shall have
      the meanings given to them in the Agency Agreement to which this Schedule is
      attached.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Appendix
      I

    SUBSCRIPTION
      AGREEMENTBroker
      Warrant No:________ 

    

    

    THIS
      WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
      “ACT”), STATE SECURITIES LAWS IN THE UNITED STATES OR THE SECURITIES LAW OF ANY
      OTHER COUNTRY AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR
      OTHERWISE DISPOSED OF UNLESS (A) SUCH TRANSACTION OCCURS OUTSIDE THE UNITED
      STATES IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF REGULATION
      S
      UNDER THE ACT (OR SUCH SUCCESSOR RULE OR REGULATION THEN IN EFFECT), IF
      APPLICABLE, AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, (B) THIS
      WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT ARE REGISTERED
      UNDER THE ACT OR (C) SUCH TRANSACTION CONSTITUTES A TRANSACTION THAT OTHERWISE
      DOES NOT REQUIRE REGISTRATION UNDER THE ACT OR ANY APPLICABLE STATE SECURITIES
      LAWS, AND THE HOLDER PRIOR TO SUCH TRANSACTION HAS FURNISHED TO THE CORPORATION
      AN OPINION OF COUNSEL OF RECOGNIZED STANDING TO THAT EFFECT REASONABLY
      SATISFACTORY TO THE CORPORATION, SUBJECT IN EACH CASE TO ANY APPLICABLE UNITED
      STATES FEDERAL OR STATE OR FOREIGN SECURITIES LAW RESTRICTIONS APPLICABLE TO
      THE
      RESALE OF THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS
      WARRANT.

    

    THIS
      WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON AND NO SECURITIES
      MAY BE DELIVERED IN THE UNITED STATES UPON EXERCISE OF THIS WARRANT UNLESS
      THE
      EXERCISE IS REGISTERED UNDER THE ACT OR AN EXEMPTION FROM SUCH REGISTRATION
      IS
      AVAILABLE. ANY PERSON EXERCISING THIS WARRANT WILL BE REQUIRED TO PROVIDE (1)
      WRITTEN CERTIFICATION THAT IT IS NOT A U.S. PERSON WITHIN THE MEANING OF
      REGULATION S OF THE ACT AND THAT THIS WARRANT IS NOT BEING EXERCISED WITHIN
      THE
      UNITED STATES OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON
      OR A PERSON IN THE UNITED STATES, OR (2) A WRITTEN OPINION OF COUNSEL OF
      RECOGNIZED STANDING TO THE EFFECT THAT THIS WARRANT AND THE SHARES ISSUABLE
      UPON
      EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE ACT AND UNDER ANY
      APPLICABLE U.S. STATE SECURITIES LAWS OR ARE EXEMPT FROM REGISTRATION
      THEREUNDER. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED
      UNLESS IN COMPLIANCE WITH THE ACT.

    

    WARRANT
      TO PURCHASE COMMON STOCK

    

    ________
      Shares of Common Stock

    

    SYNTHEMED,
      INC.

    

    THIS
      CERTIFIES THAT, for good and valuable consideration, the receipt of which is
      hereby acknowledged, __________________ (the “Warrantholder”) with an address at
      _____________________, is the registered holder of this Warrant and is entitled
      to subscribe for and purchase from SyntheMed,
      Inc.,
      a
      Delaware corporation (the “Corporation”), at any time after the date hereof and
      before 5:00 p.m. (Eastern Standard Time) on, August 13, 2011 (the “Time of
      Expiry”), up to ______ fully paid and non-assessable shares of common stock of
      the Corporation (“Shares”) par value $.001 per Share of the Corporation at an
      exercise price of $1.10 per Share, subject to adjustment as provided below
      (collectively the “Exercise Price”). 

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    This
      Warrant is subject to the provisions of the Agency Agreement dated
      August 14, 2007 between the Warrantholder and the Corporation (the “Agency
      Agreement”), and the following provisions, terms and conditions:

    

    
      	
              1.

            	
              Designation

            

    

    

    This
      warrant certificate (the “Warrant”) is issued to the Warrantholder pursuant to
      the Agency Agreement to purchase up to __________ Shares at the Exercise Price
      of $1.10 per Share. 

    

    
      	
              2.

            	
              Exercise
                of Warrant

            

    

    

    
      	 	
              (a)

            	
              Election
                to Purchase.
                This Warrant may be exercised by the Warrantholder prior to the Time
                of
                Expiry in whole or in part and in accordance with the provisions
                hereof by
                delivery of an Election to Purchase in a form substantially the same
                as
                that attached hereto as Annex “A”, properly completed and executed,
                together with this Warrant and payment of the Exercise Price multiplied
                by
                the number of Shares specified in the Election to Purchase to the
                Corporation at 200 Middlesex Essex Turnpike, Suite 210, Iselin, New
                Jersey
                08830, U.S.A., Attention: Robert P. Hickey, or such other address
                as may
                be notified in writing by the Corporation. Payment shall be made
                in U.S.
                dollars by certified or bank cashier’s cheque payable to the order of the
                Corporation.

            

    

    

    
      	 	
              (b)

            	
              Exercise.
                The Corporation shall, promptly following the date it receives a
                duly
                executed Election to Purchase, this Warrant and payment of the Exercise
                Price for the number of Shares specified in the Election to Purchase
                (the
                “Exercise Date”), issue or cause to be issued that number of Shares
                specified in the Election to Purchase as fully paid and non-assessable
                Shares. Such duly executed Election to Purchase shall constitute
                the
                Warrantholder's acknowledgement of and undertaking to comply to the
                reasonable satisfaction of the Corporation and its counsel, with
                all
                applicable laws, rules, regulations and policies of every stock exchange
                upon which the Shares of the Corporation may from time to time be
                listed
                or traded, and any other applicable governmental or regulatory
                authorities.

            

    

    

    
      	 	
              (c)

            	
              Share
                Certificates.
                As promptly as practicable after the Exercise Date (and in any event
                not
                later than 10 days after the Exercise Date), the Corporation shall
                send to
                the Warrantholder, registered in such name or names as the Warrantholder
                may direct or if no such direction has been given, in the name of
                the
                Warrantholder, a certificate or certificates for the number of Shares
                specified in the Election to Purchase. To the extent permitted by
                law,
                such exercise shall be deemed to have been effected as of the close
                of
                business on the Exercise Date, and at such time the rights of the
                Warrantholder with respect to the portion of the Warrant exercised
                shall
                cease, and the person or persons in whose name or names any certificate
                or
                certificates for Shares shall then be issuable upon such exercise
                shall be
                deemed to have become the holder or holders of record of the Shares
                represented thereby.

            

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    
      	
            	(d)	
              Fractional
                Shares.
                No fractional Shares shall be issued upon exercise of this Warrant
                and no
                payments or adjustment shall be made upon any exercise on account
                of any
                cash dividends on the Shares issued upon such exercise. If any fractional
                interest in a Share would, except for the provisions of the first
                sentence
                of this subsection 2(d), be deliverable upon the exercise of this
                Warrant,
                the number of Shares to be issued to the Warrantholder upon the exercise
                of this Warrant shall be rounded to the nearest whole
                number.

            

    

    

    
      	 	
              (e)

            	
              Subscription
                for Less than Entitlement.
                The Warrantholder may from time to time subscribe for and purchase
                a
                number of Shares less than the aggregate number which the holder
                is
                entitled to purchase pursuant to this Warrant. In the event of a
                purchase
                of a number of Shares less than the aggregate number which may be
                purchased pursuant to this Warrant, the holder thereof shall be entitled
                to receive, without charge, a new Warrant certificate in respect
                of the
                balance of the Shares subject to this Warrant which were not purchased
                by
                the Warrantholder.

            

    

    

    
      	 	
              (f)

            	
              Corporate
                Changes.
                If the Corporation shall be a party to any reorganization, merger,
                dissolution or sale of all or substantially all of its assets (the
                “Event”), (other than a reorganization or merger in which the Corporation
                is the surviving entity) then the securities purchasable hereunder
                shall
                be the securities (the “Event Securities”) which the Warrantholder would
                have received or been entitled to receive in such Event if such
                Warrantholder had fully exercised this Warrant prior to the record
                date
                (or if there was no record date, then prior to the effective date)
                of such
                Event, and the Exercise Price shall be adjusted to be the amount
                determined by multiplying the Exercise Price in effect immediately
                prior
                to the Event by the number of Shares as to which this Warrant was
                unexercised immediately prior to the Event, and dividing the product
                thereof by the number of Event Securities; provided however, that
                the
                Event shall not be carried into effect unless all necessary steps
                have
                been taken to ensure that any surviving entity is subject to the
                terms of
                this Warrant as adjusted.

            

    

    

    Notwithstanding
      anything to the contrary contained in the immediately preceding paragraph,
      in
      the event of a transaction contemplated by such paragraph in which the surviving
      or purchasing corporation demands that all outstanding Warrants be extinguished
      prior to the closing date of the contemplated transaction, the Corporation
      shall
      give prior notice (the “Merger Notice”) thereof to the Warrantholders advising
      them of such transaction. The Warrantholders shall have 10 days after the date
      of the Merger Notice to elect to (i) exercise the Warrants in the manner
      provided herein, or (ii) receive from the surviving or purchasing corporation
      the same consideration receivable by a holder of the number of Shares for which
      this Warrant might have been exercised immediately prior to such consolidation,
      merger, sale, or purchase reduced by such amount of the consideration as has
      a
      market value equal to the Exercise Price, as determined by the board of
      directors of the Corporation in accordance with the terms of the Warrants.
      If
      any Warrantholder fails to timely notify the Corporation of its election, the
      Warrantholder shall be deemed for all purposes to have elected the option set
      forth in (ii) above. Any amounts receivable by a Warrantholder who
      has

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    elected
      the option set forth in (ii) above shall be payable at the same time as amounts
      payable to stockholders in connection with any such transaction.

    

    
      	 	
              (g)

            	
              Subdivision
                or Consolidation of Shares

            

    

    

    
      	 	
              (i)

            	
              In
                the event the Corporation shall subdivide its outstanding Shares
                into a
                greater number of Shares, the Exercise Price in effect immediately
                prior
                to such subdivision shall be proportionately reduced, and conversely,
                in
                the event the outstanding Shares of the Corporation shall be consolidated
                into a smaller number of Shares, the Exercise Price in effect immediately
                prior to such consolidation shall be proportionately
                increased.

            

    

    

    
      	 	
              (ii)

            	
              Upon
                each adjustment of the Exercise Price as provided herein, the
                Warrantholder shall thereafter be entitled to acquire, at the Exercise
                Price resulting from such adjustment, the number of Shares (calculated
                to
                the nearest tenth of a Share) obtained by multiplying the Exercise
                Price
                in effect immediately prior to such adjustment by the number of Shares
                which may be acquired hereunder immediately prior to such adjustment
                and
                dividing the product thereof by the Exercise Price resulting from
                such
                adjustment.

            

    

    

    
      	 	
              (h)

            	
              Change
                or Reclassification of Shares.
                In the event the Corporation shall change or reclassify its outstanding
                Shares into a different class of securities, this Warrant shall be
                adjusted as follows so as to apply to the successor class of
                securities:

            

    

    

    
      	 	
              (i)

            	
              the
                number and kind of the successor class of securities which the
                Warrantholder shall be entitled to acquire shall be the aggregate
                number
                and kind of securities which, if this Warrant had been exercised
                immediately prior to such change or reclassification, the Warrantholder
                would have been entitled to receive by reason of such change or
                reclassification; and

            

    

    

    
      	 	
              (ii)

            	
              the
                Exercise Price shall be determined by multiplying the Exercise Price
                in
                effect immediately prior to the change or reclassification by the
                number
                of Shares as to which this Warrant was unexercised immediately prior
                to
                the change or reclassification, and dividing the product thereof
                by the
                number of the successor class of securities determined in paragraph
                2(h)(i) hereof.

            

    

    

    
      	 	
              (i)

            	
              Distribution
                to Shareholders.
                If and whenever at any time prior to the Time of Expiry the Corporation
                shall fix a record date or if a date is otherwise established (any
                such
                date being hereinafter referred to in this subsection 2(i) as the
“record
                date”) for the issuance of rights, options or warrants to all or
                substantially all the holders of the outstanding Shares of the Corporation
                entitling them, for a period expiring not more than 45 days after
                such
                record date, to subscribe for or purchase Shares of the Corporation
                or
                securities convertible into or exchangeable for Shares at a price
                per
                share or, as the case may be, having a conversion or exchange
                price

            

    

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    per
      share
      less than 95% of the Fair Market Value (as hereinafter defined) on such record
      date, the Exercise Price shall be adjusted immediately after such record date
      so
      that it shall equal the price determined by multiplying the Exercise Price
      in
      effect on such record date by a fraction, of which the numerator shall be the
      total number of Shares outstanding on such record date plus a number equal
      to
      the number arrived at by dividing the aggregate price of the total number of
      additional Shares offered for subscription or purchase or, as the case may
      be,
      the aggregate conversion or exchange price of the convertible or exchangeable
      securities so offered by the Fair Market Value, and of which the denominator
      shall be the total number of Shares outstanding on such record date plus the
      total number of additional Shares so offered (or into which the convertible
      or
      exchangeable securities so offered are convertible or exchangeable); Shares
      owned by or held for the account of the Corporation or any subsidiary of the
      Corporation shall be deemed not to be outstanding for the purpose of any such
      computation; such adjustment shall be made successively whenever such a record
      date is fixed; to the extent that any rights or warrants are not so issued
      or
      any such rights or warrants are not exercised prior to the expiration thereof,
      the Exercise Price shall then be readjusted to the Exercise Price which would
      then be in effect if such record date had not been fixed or to the Exercise
      Price which would then be in effect based upon the number of Shares or
      conversion or exchange rights contained in convertible or exchangeable
      securities actually issued upon the exercise of such rights or warrants, as
      the
      case may be.

    

    
      	 	
              (j)

            	
              Additional
                Subscriptions.
                If at any time the Corporation grants to its shareholders the right
                to
                subscribe for and purchase pro rata additional securities of the
                Corporation (other than securities described in subsection (2)(i)
                hereof)
                or of any other corporation or entity, there shall be no adjustments
                made
                to the number of Shares or other securities subject to this Warrant
                or to
                the Exercise Price in consequence thereof and this Warrant shall
                remain
                unaffected.

            

    

    

    
      	 	
              (k)

            	
              Carry
                Over of Adjustments.
                No adjustment of the Exercise Price shall be made if the amount of
                such
                adjustment shall be less than 1% of the Exercise Price in effect
                immediately prior to the event giving rise to the adjustment, provided
                however, that in such case any adjustment that would otherwise be
                required
                then to be made shall be carried forward and shall be made at the
                time of
                and together with the next subsequent adjustment which, together
                with any
                adjustment so carried forward, shall amount to at least 1% of the
                Exercise
                Price in effect prior to such
                adjustment.

            

    

    

    
      	 	
              (l)

            	
              Notice
                of Adjustment.
                Upon any adjustment of the number of Shares and upon any adjustment
                of the
                Exercise Price, then and in each such case the Corporation shall
                give
                written notice thereof to the Warrantholder, which notice shall state
                the
                Exercise Price and the number of Shares or other securities into
                which
                each Warrant is exercisable resulting from such adjustment, and shall
                set
                forth in reasonable detail the method of calculation and the facts
                upon
                which such calculation is based. Upon the request of a Warrantholder
                there
                shall be transmitted promptly to all Warrantholders a statement prepared
                by the firm of

            

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    independent
      certified public accountants retained to audit the financial statements of
      the
      Corporation to the effect that such firm concurs in the Corporation's
      calculation of the change.

    

    
      	 	
              (m)

            	
              Other
                Notices.
                If at any time:

            

    

    

    
      	 	
              (i)

            	
              the
                Corporation shall declare any dividend upon its
                Shares;

            

    

    

    
      	 	
              (ii)

            	
              the
                Corporation shall offer for subscription pro rata to the holders
                of its
                Shares any additional shares of any class or other
                rights;

            

    

    

    
      	 	
              (iii)

            	
              there
                shall be any capital reorganization or reclassification of the capital
                stock of the Corporation, or consolidation, amalgamation or merger
                of the
                Corporation with, or sale of all or substantially all of its assets
                to,
                another corporation; or

            

    

    

    
      	 	
              (iv)

            	
              there
                shall be a voluntary or involuntary dissolution, liquidation or winding-up
                of the Corporation,

            

    

    

    then,
      in
      any one or more of such cases, the Corporation shall give to the Warrantholder
      (A) at least 20 days' prior written notice of the date on which a record shall
      be taken for such dividend, distribution or subscription rights or for
      determining rights to vote in respect of any such reorganization,
      reclassification, consolidation, merger, amalgamation, sale, dissolution,
      liquidation or winding-up and (B) in the case of any such reorganization,
      reclassification, consolidation, merger, sale, dissolution, liquidation or
      winding-up, at least 20 days' prior written notice of the date when the same
      shall take place. Such notice in accordance with the foregoing clause shall
      also
      specify (1) in the case of any such dividend, distribution or subscription
      rights, the date on which the holders of Shares shall be entitled thereto,
      and
      (2) in the case of any transaction described in the foregoing clauses (iii)
      and
      (iv), the date on which the holders of Shares are to be entitled to exchange
      their Shares for securities or other property deliverable upon such
      reorganization, reclassification, consolidation, merger, amalgamation, sale,
      dissolution, liquidation or winding-up, as the case may be.

    

    
      	 	
              (n)

            	
              Shares
                to be Reserved.
                The Corporation will at all times keep available and reserve out
                of its
                authorized Shares, solely for the purpose of issue upon the exercise
                of
                this Warrant, such number of Shares as shall then be issuable upon
                the
                exercise of this Warrant. The Corporation covenants and agrees that
                all
                Shares which shall be so issuable will, upon issuance, be duly authorized
                and issued, fully paid and non-assessable. The Corporation will take
                all
                such action as may be necessary to assure that all such Shares may
                be so
                issued without violation of any applicable requirements of any stock
                exchange upon which the Shares of the Corporation may be listed or
                in
                respect of which the Shares are qualified for unlisted trading privileges.
                The Corporation will take all such action as is
                within

            

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    its
      power
      to assure that all such Shares may be so issued without violation of any
      applicable law. 

    

    
      	 	
              (o)

            	
              Issue
                Tax.
                The issuance of certificates for Shares upon the exercise of this
                Warrant
                shall be made without charge to the Warrantholder for any issuance
                tax in
                respect thereto, provided that the Corporation shall not be required
                to
                pay any tax which may be payable in respect of any transfer involved
                in
                the issuance and delivery of any certificate in a name other than
                that of
                the Warrantholder.

            

    

    

    
      	 	
              (p)

            	
              Fair
                Market Value.
                For the purposes of any computation hereunder, unless otherwise specified,
                the “Fair Market Value” at any date shall be: (i) if the Shares are listed
                on a stock exchange or quoted on a similar securities market, the
                weighted
                average sale price per share for the Shares for any 20 consecutive
                trading
                days (selected by the Corporation) commencing not more than 25 trading
                days before such date on the principal stock exchange or similar
                securities market upon which the Shares are listed or quoted, as
                the case
                may be; or (ii) if the computation is being made in connection with
                a
                public offering of Shares, the gross distribution price per Share
                under
                the offering; or (iii) in all other cases, the Fair Market Value
                shall be
                determined by the Board of Directors in good faith, which determination
                shall be conclusive. The weighted average sale price shall be determined
                by dividing the aggregate sale price of all Shares sold on the said
                exchange or market during the said 20 consecutive trading days by
                the
                total number of Shares so sold.

            

    

    

    
      	 	
              (q)

            	
              The
                Shares issued upon exercise of this Warrant shall be subject to a
                stop
                transfer order and the certificate or certificates evidencing such
                Shares
                shall bear the following legend:

            

    

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), STATE SECURITIES
      LAWS IN THE UNITED STATES OR THE SECURITIES LAWS OF ANY OTHER COUNTRY, AND
      MAY
      NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS
      (A) SUCH TRANSACTION OCCURS OUTSIDE THE UNITED STATES IN A TRANSACTION MEETING
      THE REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE ACT (OR SUCH SUCCESSOR
      RULE OR REGULATION THEN IN EFFECT), IF APPLICABLE, AND IN COMPLIANCE WITH
      APPLICABLE STATE SECURITIES LAWS, (B) THE SECURITIES REPRESENTED BY THIS
      CERTIFICATE ARE REGISTERED UNDER THE ACT OR (C) SUCH TRANSACTION CONSTITUTES
      A
      TRANSACTION THAT OTHERWISE DOES NOT REQUIRE REGISTRATION UNDER THE ACT OR ANY
      APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER PRIOR TO SUCH TRANSACTION
      HAS
      FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING TO
      THAT EFFECT REASONABLY SATISFACTORY TO THE CORPORATION, SUBJECT IN EACH CASE
      TO
      ANY APPLICABLE UNITED STATES FEDERAL, STATE OR FOREIGN SECURITIES LAW
      RESTRICTIONS APPLICABLE TO THE RESALE OF THIS WARRANT AND THE SHARES ISSUABLE
      UPON EXERCISE OF THIS WARRANT.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    
      	3.	
              Transfer

            

    

    

    Subject
      to compliance by the Warrantholder with any applicable resale restrictions,
      the
      Corporation acknowledges and agrees that this Warrant may be assigned or
      transferred by the Warrantholder at the Warrantholder’s option. It is the sole
      responsibility of the Warrantholder to ensure that all such restrictions have
      been observed. Upon any permitted assignment or transfer, the Warrantholder
      shall furnish the Corporation with such information including a properly
      completed and executed form substantially the same as that attached hereto
      as
      Annex “B”, regarding the transferee as the Corporation may reasonably require to
      register this Warrant in the name of the transferee. The Corporation shall
      be
      obligated to refuse to register any proposed transfer of this Warrant or
      underlying Shares unless made in accordance with the provisions of Regulations
      S, pursuant to registration under the Act or pursuant to an available exemption
      from registration.

    

    
      	4.	
              Replacement

            

    

    

    Upon
      receipt of evidence satisfactory to the Corporation of the loss, theft,
      destruction or mutilation of this Warrant and, if requested by the Corporation,
      upon delivery of a bond of indemnity satisfactory to the Corporation (or, in
      the
      case of mutilation, upon surrender of this Warrant), the Corporation will issue
      to the Warrantholder a replacement Warrant (containing the same terms and
      conditions as this Warrant).

    

    
      	5.	
              Expiry
                Date

            

    

    

    This
      Warrant shall expire and all rights to purchase Shares hereunder shall cease
      and
      become null and void at 5:00 p.m. (Eastern Standard Time) on August 13,
      2011.

    

    
      	6.	
              Amendment

            

    

    

    Neither
      this Warrant nor any term hereof may be changed, waived, discharged or
      terminated except by an instrument in writing signed by the party against which
      enforcement of the change, waiver, discharge or termination is
      sought.

    

    
      	7.	
              Governing
                Law

            

    

    

    The
      laws
      of the State of New York and applicable federal laws of the United States shall
      govern this Warrant.

    

    
      	8.	
              Successors

            

    

    

    This
      Warrant shall enure to the benefit of and shall be binding upon the
      Warrantholder and the Corporation and their respective successors.

    

    [signature
      page follows]

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF the Corporation has caused this Warrant to be signed by its
      duly
      authorised officer and its corporate seal hereto affixed.

    

    DATED:
      August 14, 2007.

    

    

    SYNTHEMED,
      INC.

     

     

    By:

    
      
        

      

    

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    Annex
      “A” to Warrant

    

    Election
      to Purchase

    

    The
      undersigned Warrantholder hereby irrevocably elects to exercise the Warrant
      issued by SyntheMed, Inc. dated ___________ for the number of shares of
      common stock (or other property or securities subject thereto) (“Shares”) par
      value $.001 per Share as set forth below:

    

    
      	
            	(a)	
              Number
                of Shares to be Acquired:        
                _____________  

            

    

     

    
      	
            	(b)	
              Exercise
                Price per Share:          
                $____________

            

    

    

    
      	
            	(c)	
              Aggregate
                Purchase Price        $____________

            

    

    [(a)
      multiplied by (b)]

    

    and
      hereby tenders a certified or cashier's cheque or bank draft for such aggregate
      purchase price, and directs such Shares to be registered and a certificate
      therefor to be issued as directed below.

    

    

    DATED
      this ______________ day
      of
      ___________________,
      _____.

    

    

    ________________________________                                   ______________________________

    Witness                                                                                                                    
      Signature 

    

    

    Direction
      as to Registration

    

    Name
      of
      Registered
      Holder:                                   
_______________________________________________________

    Address
      of Registered
      Holder:                             
 _______________________________________________________

                                                                                        
      _______________________________________________________

                                                                                        
      _______________________________________________________

     

     

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

    Annex
      “B”

    

    

    

    TO:        SYNTHEMED,
      INC.

    

    

    

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, transfers and assigns unto
      _____________________________ the
      within warrant (herein called the “Warrant”). The undersigned hereby irrevocably
      instructs you to transfer the Warrant on your books of registration and to
      issue
      in substitution therefor a new warrant exercisable for the same number of shares
      or other securities or property as the Warrant.

    

    

    

    DATED
      the
      ______________ day
      of
      __________________________,
      _______.

    

    

    

    

    Signature
      of Transferor is

    hereby
      guaranteed:                                                 
_______________________________________________________

    

     

     

    Note: The
      signature to this Warrant transfer must correspond with the name as set forth
      on
      the face of the Warrant in every particular without alteration or enlargement
      or
      any change whatsoever, and must be guaranteed by a bank or other financial
      institution acceptable to the Corporation.

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