Document:

Unassociated Document

    Exhibit
10.72

    

    GENERAL RELEASE AND
SEPARATION AGREEMENT

    

    This
General Release and Separation Agreement (hereafter “Agreement”) is
entered into between Michael T. Gluk (the “Executive”), and
ArthroCare Corporation (the “Company”)
(collectively referred to as the “Parties”), effective
eight days after the Executive’s signature (the “Effective Date”),
unless he revokes his acceptance as provided in Paragraph 7(b),
below.

    

    WHEREAS,
the Executive was the Senior Vice President and Chief Financial Officer of the
Company;

    

    WHEREAS,
the Executive tendered his resignation, and the Company accepted such
resignation effective as of December 18, 2008;

    

    WHEREAS,
the Company and the Executive now wish to document the termination of their
employment relationship and fully and finally to resolve all matters between
them;

    

    THEREFORE,
in exchange for the good and valuable consideration set forth herein, the
adequacy of which is specifically acknowledged, the Executive and the Company
hereby agree as follows:

    

    1.           Resignation of
Employment.  The Executive hereby confirms his resignation of
his employment and all positions that the Executive held as an officer of the
Company and all subsidiaries of the Company, and the Company confirms its
acceptance of such resignations, effective December 18, 2008 (the “Resignation
Date”).

    

    2.           Payment of Accrued Wages and
Expenses.  The Executive shall be paid an amount equal to all
accrued wages through the Resignation Date, including accrued, unused vacation
or paid time off, less applicable withholding. The Company shall pay the
Executive these amounts within seven (7) days of the Effective Date of this
Agreement.  The Executive shall be promptly reimbursed for all
reasonable and necessary expenses incurred and submitted for reimbursement on or
before December 31, 2008 in accordance with the Company’s expense reimbursement
policies.

    

    3.           Bonus for the Calendar Year
Ending December 31, 2008.  The Executive agrees that he shall
not be eligible for a bonus for the calendar year ending December 31,
2008.

    

    4.           Separation
Payment.  Within seven (7) days of the Effective Date, the
Company shall pay the Executive $128,900 (one hundred twenty-eight thousand nine
hundred dollars) (the “Separation Payment”), less applicable
taxes.  The Separation Payment shall be dated and considered paid
effective December 31, 2008.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.           Equity
Awards.  All equity awards granted to the Executive shall be
treated in accordance with the terms of the applicable Plan(s), Agreement(s) and
Notice(s) of Grant.

    

    6.           [Intentionally
Omitted.]

    

    7.           General Release of
Claims.

    

    (a)           The
Executive, on behalf of himself and his executors, heirs, administrators,
representatives and assigns, hereby agrees to release and forever discharge the
Company and all predecessors, successors and their respective parent
corporations, affiliates, related, and/or subsidiary entities, and all of their
past and present investors, directors, shareholders, officers, general or
limited partners, employees, attorneys, agents and representatives, and employee
benefit plans in which the Executive is or has been a participant by virtue of
his employment with the Company (the “Company Parties”), from any and all
claims, debts, demands, accounts, judgments, rights, causes of action, equitable
relief, damages, costs, charges, complaints, obligations, promises, agreements,
controversies, suits, expenses, compensation, responsibility and liability of
every kind and character whatsoever (including attorneys’ fees and costs),
whether in law or equity, known or unknown, asserted or unasserted, suspected or
unsuspected (collectively, “Claims”), which the Executive has or may have had
against such entities based on any events or circumstances arising or occurring
on or prior to the date hereof or on or prior to the Resignation Date, arising
directly or indirectly out of, relating to, or in any other way involving in any
manner whatsoever the Executive's employment by the Company or the separation
thereof, and any and all claims arising under federal, state, or local laws
relating to employment, including without limitation claims of wrongful
discharge, breach of express or implied contract, fraud, misrepresentation,
defamation, or liability in tort, claims of any kind that may be brought in any
court or administrative agency, any claims arising under Title VII of the Civil
Rights Act; the Civil Rights Act of 1866; the Sarbanes-Oxley Act; the Age
Discrimination in Employment Act; the Equal Pay Act; the Fair Labor Standards
Act; the Employee Retirement Income Security Act; the Americans with
Disabilities Act; the Family Medical Leave Act; and/or any other local, state or
federal law governing discrimination in employment and/or the payment of wages
and benefits; and claims arising under the SVP Continuity Agreement entered into
between the Company and the Executive.

    

    Notwithstanding the generality of the
foregoing, the Executive does not release the following claims and
rights:

    

    (i)           Claims
for unemployment compensation or any state disability insurance benefits
pursuant to the terms of applicable state law;

    

    (ii)           Claims
to continued participation in certain of the Company's group benefit plans
pursuant to the terms and conditions of the federal law known as
COBRA;

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (iii)           The
Executive’s right to file a charge with any state or federal agency; provided,
however, that the Executive does release his right to secure any damages for the
conduct alleged in such charge; and

    

    (iv)           The
Executive’s rights under this Agreement, his rights as a shareholder, and his
right to indemnification from the Company pursuant to the  Company’s
Certificate of Incorporation, its Bylaws, the General Corporation Law of the
State of Delaware, any applicable statute or common law, any applicable
insurance policy, and the terms of the Indemnification Agreement attached as
Exhibit A
hereto.

    

    (b)           In
accordance with the Older Workers Benefit Protection Act of 1990, the Executive
acknowledges that he is aware of the following:

    

    (i)            
This Section 7, and this Agreement are written in a manner calculated to be
understood by the Executive.

    

    (ii)           
The waiver and release of claims under the Age Discrimination in Employment Act
contained in this Agreement does not cover rights or claims that may arise after
the date on which the Executive signs this Agreement.

    

    (iii)           This
Agreement provides for consideration in addition to anything of value to which
the Executive is already entitled.

    

    (iv)           The
Executive has been advised to consult an attorney before signing this
Agreement.

    

    (v)          
 The Executive has been granted forty-five (45) days after he is presented
with this Agreement to decide whether or not to sign this
Agreement.  If the Executive executes this Agreement prior to the
expiration of such period, he does so voluntarily and after having had the
opportunity to consult with an attorney, and hereby waives the remainder of the
consideration period.

    

    (vi)           The
Executive has the right to revoke this Agreement within seven (7) days of
signing it.  In the event this Agreement is revoked, it will be null
and void in its entirety, and the Executive will not receive the benefits of
this Agreement, except for the payment of accrued wages, unused vacation, and
unreimbursed business expenses as of the Resignation Date.

    

    If the
Executive wishes to revoke this agreement, he must deliver written notice
stating that intent to revoke, in accordance with the notice provisions of
Section 14, on or before 5:00 p.m. on the seventh (7th) day
after the date on which the Executive signs this Agreement.

    

    8.           Nondisparagement.  The
Executive agrees that neither he nor anyone acting by, through or in concert
with him shall disparage or otherwise communicate negative statements or
opinions about the Company, its Board members, officers, employees or
business.  The Company agrees that neither its Board members nor its
officers shall disparage or otherwise communicate negative statements or
opinions about the Executive.  Notwithstanding the foregoing, nothing
herein shall be construed to prohibit any person from making truthful statements
to any governmental agency or providing truthful testimony under oath in any
legal or administrative proceeding.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    9.           Cooperation.  The
Executive agrees to give reasonable cooperation, at the Company’s request and
with the assistance of counsel of his choosing, in any pending or future
litigation or arbitration brought against the Company and in any investigation
the Company may conduct.  The Company shall reimburse the Executive
for all expenses (excluding attorney’s fees) reasonably incurred by him in
compliance with this Section 9.  Notwithstanding the foregoing, the
Company shall have no obligation to pay the Executive for time spent and
expenses incurred by the Executive in any pending or future litigation or
arbitration where the Executive is a co-defendant or party to the arbitration or
litigation, unless the Executive is entitled to indemnification from the Company
pursuant to the Company’s Certificate of Incorporation, its Bylaws, the General
Corporation Law of the State of Delaware, any applicable statute or common law,
any applicable insurance policy, and the terms of the Indemnification
Agreement.

    

    10.         Executive’s Representations
and Warranties.  The Executive represents and warrants
that:

    

    (a)           He
has been paid all wages owed to him by the Company, including all accrued,
unused vacation or paid time off, through the Resignation Date;

    

    
                     
(b)          During
the course of the Executive’s employment, he did not sustain any injuries for
which he might be entitled to compensation pursuant to applicable workers
compensation law;

    

    

    
                     
(c)          The
Executive has not initiated any adversarial proceedings of any kind against the
Company or against any other person or entity released herein, nor will he do so
in the future, except as specifically allowed by this
Agreement.

    

    

    11.         Confidential Information;
Return of Company Property.  The Executive hereby expressly
confirms his continuing obligations to the Company pursuant to the Employment,
Proprietary Information and Invention Assignment Agreement (the “Confidentiality
Agreement”) executed by the Executive on December 1, 2004.

    

    The
Executive shall deliver to the Company within 10 days of the Resignation Date
all originals and copies of correspondence, drawings, manuals, letters, notes,
notebooks, reports, programs, plans, proposals, financial documents, or any
other documents concerning the Company’s customers, business plans, marketing
strategies, products, processes or business of any kind and/or which contain
proprietary information or trade secrets which are in the possession or control
of the Executive or his agents or representatives.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
Executive shall return to the Company within 10 days of the Resignation Date all
equipment of the Company in his possession or control.  However, the
Company agrees that the Executive shall be entitled to retain possession of the
cell phone he was using as of the Resignation Date.

    

    12.         In the Event of a Claimed
Breach.  All controversies, claims and disputes arising out of
or relating to this Agreement, including without limitation any alleged
violation of its terms, shall be resolved final and binding arbitration before a
single neutral arbitrator in Austin, Texas in accordance with the Employment
Dispute Resolution Rules of the American Arbitration Association (“AAA”). The
arbitration shall be commenced by filing a demand for arbitration with the AAA
within 14 (fourteen) days after the filing party has given notice of such breach
to the other party.  The arbitrator shall award the prevailing party
attorneys’ fees and expert fees, if any.  Notwithstanding the
foregoing, it is acknowledged that it will be impossible to measure in money the
damages that would be suffered if the parties fail to comply with any of the
obligations imposed on them under Section 11(a) and (b) hereof, and that in the
event of any such failure, an aggrieved person will be irreparably damaged and
will not have an adequate remedy at law.  Any such person shall,
therefore, be entitled to injunctive relief, including specific performance, to
enforce such obligations, and if any action shall be brought in equity to
enforce any of the provisions of Section 11(a) and (b) of this Agreement, none
of the parties hereto shall raise the defense that there is an adequate remedy
at law..

    

    13.         Choice of
Law.  This Agreement shall in all respects be governed and
construed in accordance with the laws of the State of Texas, including all
matters of construction, validity and performance, without regard to conflicts
of law principles.

    

    14.         Notices.  All
notices, demands or other communications regarding this Agreement shall be in
writing and shall be sufficiently given if either personally delivered or sent
by facsimile or overnight courier, addressed as follows:

    

    
      	
            	
              (a)

            	
              If
      to the Company:

            

    

    

    ArthroCare Corporation

    7500 Rialto Boulevard

    Building Two, Suite 100

    Austin, Texas 78735

    Attn:  General
Counsel

    Tel:  512-391-3900

    Fax:  512-391-3901

    

    
      	
            	
              (b)

            	
              If
      to the Executive:

            

    

    

    Michael T. Gluk

    2100 Demona Drive

    Austin, TX 78733

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    15.         Severability.  Except
as otherwise specified below, should any portion of this Agreement be found void
or unenforceable for any reason by a court of competent jurisdiction, the
parties intend that such provision be limited or modified so as to make it
enforceable, and if such provision cannot be modified to be enforceable, the
unenforceable portion shall be deemed severed from the remaining portions of
this Agreement, which shall otherwise remain in full force and
effect.  If any portion of this Agreement is so found to be void or
unenforceable for any reason in regard to any one or more persons, entities, or
subject matters, such portion shall remain in full force and effect with respect
to all other persons, entities, and subject matters.  This paragraph
shall not operate, however, to sever the Executive's obligation to provide the
binding release to all entities intended to be released hereunder.

    

    16.         Understanding and
Authority.  The parties understand and agree that all terms of
this Agreement are contractual and are not a mere recital, and represent and
warrant that they are competent to covenant and agree as herein
provided.

    

    17.         Integration
Clause.  This Agreement contains the entire agreement of the
parties with regard to the separation of the Executive's employment, and
supersedes any prior agreements as to that matter. This Agreement may not be
changed or modified, in whole or in part, except by an instrument in writing
signed by the Executive and an authorized officer of the Company.

    

    18.         Execution in
Counterparts.  This Agreement may be executed in counterparts
with the same force and effectiveness as though executed in a single
document.

    

    The
parties have carefully read this Agreement in its entirety; fully understand and
agree to its terms and provisions; and intend and agree that it is final and
binding on all parties.

    

    IN
WITNESS WHEREOF, and intending to be legally bound, the parties have executed
the foregoing on the dates shown below.

     

    
      
        	
                MICHAEL
      T. GLUK

              	 
      	
                ARTHROCARE
      CORPORATION

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                /s/ Michael T. Gluk

              	 
      	
                By:

              	
                /s/ Michael A. Baker

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                Title:

              	
                President
      and CEO

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                Date:

              	
                December
      31, 2008

              	 
      	
                Date:

              	
                December
      31, 2008

              	 
      

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    INDEMNIFICATION
AGREEMENT

    

    

    This
Indemnification Agreement (the “Agreement”) is made
as of December 17, 2008 by and between ArthroCare Corporation, a Delaware
corporation (the “Company”), and
Michael T. Gluk (the “Indemnitee”), with
effect as of the first date of the Indemnitee’s employment with the
Company.

    

    RECITALS

    

    The
Company and Indemnitee recognize the increasing difficulty in obtaining
liability insurance for directors, officers and key employees, the significant
increases in the cost of such insurance and the general reductions in the
coverage of such insurance.  The Company and Indemnitee further
recognize the substantial increase in corporate litigation in general,
subjecting directors, officers and key employees to expensive litigation risks
at the same time as the availability and coverage of liability insurance has
been severely limited.  Indemnitee does not regard the current
protection available as adequate under the present circumstances, and Indemnitee
and agents of the Company may not be willing to continue to serve as agents of
the Company without additional protection.  The Company desires to
attract and retain the services of highly qualified individuals, such as
Indemnitee, and to indemnify its directors, officers and key employees so as to
provide them with the maximum protection permitted by law.

    

    AGREEMENT

    

    In
consideration of the mutual promises made in this Agreement, and for other good
and valuable consideration, receipt of which is hereby acknowledged, the Company
and Indemnitee hereby agree as follows:

    

    1.           Indemnification.

    

    (a)           Third Party
Proceedings.  The Company shall indemnify Indemnitee if
Indemnitee is or was a party, or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an action by or in the
right of the Company) by reason of the fact that Indemnitee is or was a
director, officer, employee or agent of the Company, or any subsidiary of the
Company, by reason of any action or inaction on the part of Indemnitee while an
officer or director or by reason of the fact that Indemnitee is or was serving
at the request of the Company as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys’ fees), judgments, fines and amounts paid
in settlement (if such settlement is approved in advance by the Company, which
approval shall not be unreasonably withheld) actually and reasonably incurred by
Indemnitee in connection with such action, suit or proceeding if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in or
not opposed to the best interests of the Company, and, with respect to any
criminal action or proceeding, had no reasonable cause to believe Indemnitee’s
conduct was unlawful.  The termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a presumption that
Indemnitee did not act in good faith and in a manner which Indemnitee reasonably
believed to be in or not opposed to the best interests of the Company, or, with
respect to any criminal action or proceeding, that Indemnitee had reasonable
cause to believe that Indemnitee’s conduct was unlawful.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           Proceedings By or in the
Right of the Company.  The Company shall indemnify Indemnitee
if Indemnitee was or is a party or is threatened to be made a party to any
threatened, pending or completed action or proceeding by or in the right of the
Company or any subsidiary of the Company to procure a judgment in its favor by
reason of the fact that Indemnitee is or was a director, officer, employee or
agent of the Company, or any subsidiary of the Company, by reason of any action
or inaction on the part of Indemnitee while an officer or director or by reason
of the fact that Indemnitee is or was serving at the request of the Company as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys’ fees)
and, to the fullest extent permitted by law, amounts paid in settlement (if such
settlement is approved in advance by the Company, which approval shall not be
unreasonably withheld), in each case to the extent actually and reasonably
incurred by Indemnitee in connection with the defense or settlement of such
action or suit if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company
and its stockholders, except that no indemnification shall be made in respect of
any claim, issue or matter as to which Indemnitee shall have been finally
adjudicated by court order or judgment to be liable to the Company in the
performance of Indemnitee’s duty to the Company and its stockholders unless and
only to the extent that the court in which such action or proceeding is or was
pending shall determine upon application that, in view of all the circumstances
of the case, Indemnitee is fairly and reasonably entitled to indemnity for such
expenses which such court shall deem proper.

    

    (c)           Mandatory Payment of
Expenses.  To the extent that Indemnitee has been successful on
the merits or otherwise in defense of any action, suit or proceeding referred to
in Section 1(a) or Section 1(b) or the defense of any claim, issue or
matter therein, Indemnitee shall be indemnified against expenses (including
attorneys’ fees) actually and reasonably incurred by Indemnitee in connection
therewith.

    

    2.           No Employment
Rights.  Nothing contained in this Agreement is intended to
create in Indemnitee any right to continued employment.

    

    3.           Expenses; Indemnification
Procedure.

    

    (a)           Advancement of
Expenses.  The Company shall advance all expenses incurred by
Indemnitee in connection with the investigation, defense, settlement or appeal
of any civil or criminal action, suit or proceeding referred to in
Section l(a) or Section 1(b) hereof (including amounts actually paid
in settlement of any such action, suit or
proceeding).  Indemni­tee hereby undertakes to repay such amounts
advanced only if, and to the extent that, it shall ultimately be determined that
Indemnitee is not entitled to be indemnified by the Company as authorized
hereby.  Any advances to be made under this Agreement shall be paid by
the Company to Indemnitee within twenty (20) days following delivery of a
written request therefor by Indemnitee to the Company.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           Notice/Cooperation by
Indemnitee.  Indemnitee shall, as a condition precedent to his
or her right to be indemnified under this Agreement, give the Company notice in
writing as soon as practicable of any claim made against Indemnitee for which
indemnification will or could be sought under this Agreement.  Notice
to the Company shall be directed to the Chief Executive Officer of the Company
and shall be given in accordance with the provisions of Section 12(d)
below.  In addition, Indemnitee shall give the Company such
information and cooperation as it may reasonably require and as shall be within
Indemnitee’s power.

    

    (c)           Procedure.  Any
indemnification and advances provided for in Section 1 and this
Section 3 shall be made no later than forty-five (45) days after receipt of
the written request of Indemnitee.  If a claim under this Agreement,
under any statute, or under any provision of the Company’s Certificate of
Incorporation or Bylaws providing for indemnification, is not paid in full by
the Company within forty-five (45) days after a written request for payment
thereof has first been received by the Company, Indemnitee may, but need not, at
any time thereafter bring an action against the Company to recover the unpaid
amount of the claim and, subject to Section 11 of this Agreement,
Indemnitee shall also be entitled to be paid for the expenses (including
attorneys’ fees) of bringing such action.  It shall be a defense to
any such action (other than an action brought to enforce a claim for expenses
incurred in connection with any action, suit or proceeding in advance of its
final disposition) that Indemnitee has not met the standards of conduct which
make it permissible under applicable law for the Company to indemnify Indemnitee
for the amount claimed, but the burden of proving such defense shall be on the
Company and Indemnitee shall be entitled to receive interim payments of expenses
pursuant to Section 3(a) unless and until such defense may be finally
adjudicated by court order or judgment from which no further right of appeal
exists.  It is the parties’ intention that if the Company contests
Indemnitee’s right to indemnification, the question of Indemnitee’s right to
indemnification shall be for the court to decide, and neither the failure of the
Company (including its Board of Directors, any committee or subgroup of the
Board of Directors, independent legal counsel, or its stockholders) to have made
a determination that indemnification of Indemnitee is proper in the
circumstances because Indemnitee has met the applicable standard of conduct
required by applicable law, nor an actual determination by the Company
(including its Board of Directors, any committee or subgroup of the Board of
Directors, independent legal counsel, or its stockholders) that Indemnitee has
not met such applicable standard of conduct, shall create a presumption that
Indemnitee has or has not met the applicable standard of conduct.

    

    (d)           Notice to
Insurers.  If, at the time of the receipt of a notice of a
claim pursuant to Section 3(b) hereof, the Company has director and officer
liability insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies.  The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay,
on behalf of the Indemnitee, all amounts payable as a result of such proceeding
in accordance with the terms of such policies.

    

    (e)           Selection of
Counsel.  In the event the Company shall be obligated under
Section 3(a) hereof to pay the expenses of any proceeding against Indemnitee,
the Company, if appropriate, shall be entitled to assume the defense of such
proceeding, with counsel approved by Indemnitee, upon the delivery to Indemnitee
of written notice of its election so to do.  After delivery of such
notice, approval of such counsel by Indemnitee and the retention of such counsel
by the Company, the Company will not be liable to Indemnitee under this
Agreement for any fees of counsel subsequently incurred by Indemnitee with
respect to the same proceeding, pro­vided that (i) Indemnitee shall
have the right to employ counsel in any such proceeding at Indemnitee’s expense;
and (ii) if (A) the employment of counsel by Indemnitee has been
previously authorized by the Company, (B) Indemnitee shall have reasonably
concluded that there may be a conflict of interest between the Company and
Indemnitee in the conduct of any such defense or (C) the Company shall not,
in fact, have employed counsel to assume the defense of such proceeding, then
the fees and expenses of Indemnitee’s counsel shall be at the expense of the
Company.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.           Additional Indemnification
Rights; Nonexclusivity.

    

    (a)           Scope.  Notwithstanding
any other provision of this Agreement, the Company hereby agrees to indemnify
the Indemnitee to the fullest extent permitted by law, notwithstanding that such
indemnification is not specifically authorized by the other provisions of this
Agreement, the Company’s Certificate of Incorporation, the Company’s Bylaws or
by statute.  In the event of any change, after the date of this
Agreement, in any applicable law, statute, or rule which expands the right of a
Delaware corporation to indemnify a member of its board of directors or an
officer, such changes shall be deemed to be within the purview of Indemnitee’s
rights and the Company’s obligations under this Agreement.  In the
event of any change in any applicable law, statute or rule which narrows the
right of a Delaware corporation to indemnify a member of its board of directors
or an officer, such changes, to the extent not otherwise required by such law,
statute or rule to be applied to this Agreement shall have no effect on this
Agreement or the parties’ rights and obligations hereunder.

    

    (b)           Nonexclusivity.  The
indemnification provided by this Agreement shall not be deemed exclusive of any
rights to which Indemnitee may be entitled under the Company’s Certificate of
Incorporation, its Bylaws, any agreement, any vote of stockholders or
disinterested members of the Company’s Board of Directors, the General
Corporation Law of the State of Delaware, or otherwise, both as to action in
Indemnitee’s official capacity and as to action in another capacity while
holding such office.  The indemnification provided under this
Agreement shall continue as to Indemnitee for any action taken or not taken
while serving in an indemnified capacity even though he or she may have ceased
to serve in any such capacity at the time of any action, suit or other covered
proceeding.

    

    5.           Partial
Indemnification.  If Indemnitee is entitled under any provision
of this Agreement to indemnification by the Company for some or a portion of the
expenses, judgments, fines or penalties actually or reasonably incurred in the
investigation, defense, appeal or settlement of any civil or criminal action,
suit or proceeding, but not, however, for the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for the portion of such expenses,
judgments,  fines or penalties to which Indemnitee is
entitled.

    

    6.           Mutual
Acknowledgment.  Both the Company and Indemnitee acknowledge
that in certain instances, Federal law or public policy may override applicable
state law and prohibit the Company from indemnifying its directors and officers
under this Agreement or otherwise.  For example, the Company and
Indemnitee acknowledge that the Securities and Exchange Commission (the “SEC”) has taken the
position that indemnification is not permissible for liabilities arising under
certain federal securities laws, and federal legislation prohibits
indemnification for certain ERISA violations. Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future to
undertake with the SEC to submit the question of indemnification to a court in
certain circumstances for a determination of the Company’s right under public
policy to indemnify Indemnitee.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.           Officer and Director
Liability Insurance.  The Company shall, from time to time,
make the good faith determination whether or not it is practicable for the
Company to obtain and maintain a policy or policies of insurance with reputable
insurance companies providing the officers and directors of the Company with
coverage for losses from wrongful acts, or to ensure the Company’s performance
of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance
coverage against the protection afforded by such coverage.  In all
policies of director and officer liability insurance, Indemnitee shall be named
as an insured in such a manner as to provide Indemnitee the same rights and
benefits as are accorded to the most favorably insured of the Company’s
directors, if Indemnitee is a director; or of the Company’s officers, if
Indemnitee is not a director of the Company but is an officer; or of the
Company’s key employees, if Indemnitee is not an officer or director but is a
key employee.  Notwithstanding the foregoing, the Company shall have
no obligation to obtain or maintain such insurance if the Company determines in
good faith that such insurance is not reasonably available, if the premium costs
for such insurance are disproportionate to the amount of coverage provided, if
the coverage provided by such insurance is limited by exclusions so as to
provide an insufficient benefit, or if Indemnitee is covered by similar
insurance maintained by a parent or subsidiary of the Company.

    

    8.           Severability.  Nothing
in this Agreement is intended to require or shall be construed as requiring the
Company to do or fail to do any act in violation of applicable
law.  The Company’s inability, pursuant to court order, to perform its
obligations under this Agreement shall not constitute a breach of this
Agreement.  The provisions of this Agreement shall be severable as
provided in this Section 8.  If this Agreement or any portion
hereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the
full extent permitted by any applicable portion of this Agreement that shall not
have been invalidated, and the balance of this Agreement not so invalidated
shall be enforceable in accordance with its terms.

    

    9.           Exceptions.  Any
other provision herein to the contrary notwithstanding, the Company shall not be
obligated pursuant to the terms of this Agreement:

    

    (a)           Claims Initiated by
Indemnitee.  To indemnify or advance expenses to Indemnitee
with respect to proceedings or claims initiated or brought voluntarily by
Indemnitee and not by way of defense, except with respect to proceedings brought
to establish or enforce a right to indemnification under this Agreement or any
other statute or law or otherwise as required under Section 145 of the
Delaware General Corporation Law, but such indemnification or advancement of
expenses may be provided by the Company in specific cases if the Board of
Directors finds it to be appropriate;

    

    (b)           Lack of Good
Faith.  To indemnify Indemnitee for any expenses incurred by
Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or
interpret this Agreement, if a court of competent jurisdiction determines that
each of the material assertions made by Indemnitee in such proceeding was not
made in good faith or was frivolous;

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)           Insured
Claims.  To indemnify Indemnitee for expenses or liabilities of
any type whatsoever (including, but not limited to, judgments, fines, ERISA
excise taxes or penalties, and amounts paid in settlement) to the extent such
expenses or liabilities have been paid directly to Indemnitee by an insurance
carrier under a policy of officers’ and directors’ liability insurance
maintained by the Company; or

    

    (d)           Claims under Section
16(b).  To indemnify Indemnitee for expenses or the payment of
profits arising from the purchase and sale by Indemnitee of securities in
violation of Section 16(b) of the Securities Exchange Act of 1934, as
amended, or any similar successor statute.

    

    10.           Construction of Certain
Phrases.

    

    (a)           For
purposes of this Agreement, references to the “Company” shall
include, in addition to the resulting corporation, any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or
merger which, if its separate existence had continued, would have had power and
authority to indemnify its directors, officers, and employees or agents, so that
if Indemnitee is or was a director, officer, employee or agent of such
constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, Indemnitee shall stand in
the same position under the provisions of this Agreement with respect to the
resulting or surviving corporation as Indemnitee would have with respect to such
constituent corporation if its separate existence had continued.

    

    (b)           For
purposes of this Agreement, references to “other enterprises”
shall include employee benefit plans; references to “fines” shall include
any excise taxes assessed on Indemnitee with respect to an employee benefit
plan; and references to “serving at the request of
the Company” shall include any service as a director, officer, employee
or agent of the Company which imposes duties on, or involves services by, such
director, officer, employee or agent with respect to an employee benefit plan,
its participants, or beneficiaries; and if Indemnitee acted in good faith and in
a manner Indemnitee reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan, Indemnitee shall be
deemed to have acted in a manner “not opposed to the best
interests of the Company” as referred to in this Agreement.

    

    11.           Attorneys’
Fees.  In the event that any action is instituted by Indemnitee
under this Agreement to enforce or inter­pret any of the terms hereof,
Indemnitee shall be entitled to be paid all court costs and expenses, including
reasonable attorneys’ fees, incurred by Indemnitee with respect to such action,
unless as a part of such action, the court of competent jurisdiction determines
that each of the material assertions made by Indemnitee as a basis for such
action were not made in good faith or were frivolous.  In the event of
an action instituted by or in the name of the Company under this Agreement or to
enforce or interpret any of the terms of this Agreement, Indemnitee shall be
entitled to be paid all court costs and expenses, including attorneys’ fees,
incurred by Indemnitee in defense of such action (including with respect to
Indemnitee’s counterclaims and cross-claims made in such action), unless as a
part of such action the court determines that each of Indemnitee’s material
defenses to such action were made in bad faith or were frivolous.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    12.           Miscellaneous.

    

    (a)           Governing
Law.  This Agreement and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto shall be governed,
construed and interpreted in accordance with the laws of the State of Delaware,
without giving effect to principles of conflict of law.

    

    (b)           Entire Agreement;
Enforcement of Rights.  This Agreement sets forth the entire
agreement and understanding of the parties relating to the subject matter herein
and merges all prior discussions between them.  No modification of or
amendment to this Agreement, nor any waiver of any rights under this Agreement,
shall be effective unless in writing signed by the parties to this
Agreement.  The failure by either party to enforce any rights under
this Agreement shall not be construed as a waiver of any rights of such
party.

    

    (c)           Construction.  This
Agreement is the result of negotiations between and has been reviewed by each of
the parties hereto and their respective counsel, if any;  accordingly,
this Agreement shall be deemed to be the product of all of the parties hereto,
and no ambiguity shall be construed in favor of or against any one of the
parties hereto.

    

    (d)           Notices.  Any
notice, demand or request required or permitted to be given under this Agreement
shall be in writing and shall be deemed sufficient when delivered personally or
sent by telegram or forty-eight (48) hours after being deposited in the U.S.
mail, as certified or registered mail, with postage prepaid, and addressed to
the party to be notified at such party’s address as set forth below or as
subsequently modified by written notice.

    

    (e)           Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one
instrument.

    

    (f)           Successors and
Assigns.  This Agreement shall be binding upon the Company and
its successors and assigns, and inure to the benefit of Indemnitee and
Indemnitee’s heirs, legal representatives and assigns.

    

    (g)          Subrogation.  In
the event of payment under this Agreement, the Company shall be subrogated to
the extent of such payment to all of the rights of recovery of Indemnitee, who
shall execute all documents required and shall do all acts that may be necessary
to secure such rights and to enable the Company to effectively bring suit to
enforce such rights.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
parties hereto have executed this Agreement as of the day and year set forth on
the first page of this Agreement.

     

    
      
        	 
      	
                ARTHROCARE
      CORPORATION

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Michael A.
      Baker

              
	 
      	 
      	 
      
	 
      	
                Name:

              	
                Michael
      A. Baker

              
	 
      	 
      	 
      
	 
      	
                Title:

              	
                President
      and CEO

              
	 
      	 
      	 
      
	 
      	
                Address: 
      

              	
                7500
      Rialto Boulevard

              
	 
      	 
      	
                 Building
      Two, Suite 100

              
	 
      	 
      	
                Austin,
      Texas 78735

              
	 
      	 
      	 
      
	 
      	
                Date:

              	
                December
      31, 2008

              

      

    

    

    

    AGREED TO AND
ACCEPTED:

    

    INDEMNITEE

    

    /s/ Michael
Gluk

    Michael
Gluk

     

    
      
        	
                Address: 
      

              	
                2100
      Demona Drive

                Austin,
      Texas 78733

              

      

    

    

    Date:  
December 31, 2008Exhibit
10.1

    

    Execution
Copy

    

    SYNVISTA
THERAPEUTICS, INC.

    

    NOTE
PURCHASE AGREEMENT

    

    February
24, 2009

    

    Synvista
Therapeutics, Inc.

    221 West
Grand Avenue

    Montvale,
NJ 07645

    

    Ladies
and Gentlemen:

     

    1.       Purchase and
Sale.  On the Closing Date (as defined herein), Synvista
Therapeutics, Inc., a Delaware corporation (the “Company”) hereby agrees to
issue and sell to each of the undersigned holders of the Company’s Series B
Preferred Stock, $0.01 par value per share (each a “Holder” and, collectively, the
“Holders”), a Senior
Secured Promissory Note, in the form attached hereto as Exhibit A (each, a
“Note” and,
collectively, the “Notes”), in the principal
amount set forth opposite such Holder’s name on Schedule
A.

     

    2.       Closing Date and
Payment. The closing (the “Closing”) of the issuance and
sale of the Notes shall take place at the offices of the Company at 10:00 a.m.
on the date hereof (the “Closing Date”).

     

    3.      
Representations and
Warranties of each Holder.  Each Holder hereby acknowledges,
represents, warrants and/or agrees as follows:

     

    (a)         The
sale of the Notes has not been registered under the Securities Act of 1933, as
amended, or any successor statute (the “Securities Act”), or any state
securities laws.  The Holder understands that the offering and sale of
the Notes is intended to be exempt from registration under the Securities Act,
by virtue of Section 4(2) and/or Section 4(6) of the Securities Act and the
provisions of Regulation D promulgated thereunder;

     

    (b)       
The Holder is acquiring the Notes solely for its own account for investment and
not with a view to resale or distribution and has no present intention of
transferring the Notes to any other person or entity;

     

    (c)         The
Holder is an “accredited investor” as that term is defined in Rule 501 of
Regulation D under the Securities Act;

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    (d)         The
Holder is a sophisticated investor and has such knowledge and experience in
financial, tax, and business matters, including, without limitation, experience
in investments by actual participation, so as to enable it to utilize the
information made available to it in connection with the offering of the Notes,
to evaluate the merits and risks of an investment in the Notes and to make an
informed investment decision with respect thereto;

     

    (e)       
The Holder is either a natural person or an entity which was not formed for the
specific purpose of acquiring the Notes.  With respect to any
entity-Holder, the execution, delivery and performance of this Agreement by the
Holder have been duly authorized and the Agreement is a valid and legally
binding agreement of the Holder;

     

    (f)         
The Holder has received all documents requested by the Holder regarding the
Company and has reviewed them and believes it is well-informed about the
Company;

     

    (g)         The
Holder acknowledges that neither the U.S. Securities and Exchange Commission
(“SEC”) nor any U.S.
state or foreign securities commission has approved the Notes or passed upon or
endorsed the merits of the offering;

     

    (h)         The
Holder is aware that an investment in the Notes involves a number of very
significant risks;

     

    (i)          The
Holder must bear the economic risk of the investment indefinitely because the
Notes may not be sold, hypothecated or otherwise disposed of unless subsequently
registered under the Securities Act and applicable state securities laws or an
exemption from registration is available.  Legends shall be placed on
the Notes to the effect that they have not been registered under the Securities
Act or applicable state securities laws and of the resulting limitations on
transfer and that appropriate notations thereof will be made in the Company’s
books and stock transfer records;

     

    (j)          The
aggregate purchase price of the Notes does not exceed twenty percent (20%) of
the investor’s net worth;

     

    (k)         The
Holder has taken no action which would give rise to any claim by any person for
brokerage commission, finders’ fees or the like relating to this Agreement or
the transactions contemplated hereby; and

     

    (l)         
The information contained herein is accurate and may be relied upon by the
Company in determining the availability of an exemption from registration under
Federal and state securities laws in connection with the offering of the
Notes.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    4.       Representations and
Warranties of the Company.  The Company hereby acknowledges,
represents, warrants and/or agrees as follows:

     

    (a)         Organization, Standing and
Qualification of the Company.  The Company is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware.  The Company has all requisite corporate power and
authority to own and operate its properties and to carry on its business as now
being conducted and as proposed to be conducted.  The Company is duly
qualified to do business as a foreign corporation and is in good standing in
each jurisdiction in which failure to so qualify would materially and adversely
affect the business, properties, operations or condition, financial or
otherwise, of the Company.  The resolutions adopted by the directors
of the Company on February 20, 2009 authorizing the transactions contemplated by
this Agreement have not been amended or modified in any way, have not been
rescinded and are in full force and effect on the date hereof.

     

    (b)         Corporate Authority;
Enforceability.  The Company has full right, power and
authority to issue and sell the Notes as herein contemplated and the Company has
full power and authority to enter into and perform its obligations under this
Agreement, the Notes, the Security Agreement (defined in Section 7(a)), and the
Intellectual Property Security Agreement (defined in Section
7(a)).  The execution and delivery of this Agreement, the Notes, the
Security Agreement, and the Intellectual Property Security Agreement by the
Company and the consummation of the transactions contemplated herein and therein
have been duly authorized and approved by all requisite corporate action, and
each of this Agreement, the Notes, the Security Agreement, and the Intellectual
Property Security Agreement are a valid and legally binding obligation of the
Company; provided, however, (i) that
insofar as any foreclosure on the Collateral (as defined in Section 6(a) hereof)
would constitute a sale of all or substantially all of the Company’s assets
requiring stockholder approval, such stockholder approval has not been obtained,
and (ii) that the Company must file a Certificate of Designations with the
Secretary of State of the State of Delaware to designate 2,100,000 shares of its
currently undesignated Preferred Stock, $0.01 par value per share, as Series B
Preferred Stock, in order to make such shares available for the payment to the
Holders of dividends on such shares of Series B Preferred Stock, pursuant to the
terms of the Company’s Amended and Restated Certificate of Incorporation (the
“Charter”), and that, in the event that the dividends payable under the Charter
to the Holders are likely to exceed 2,100,000 shares of Series B Preferred
Stock, the Company shall be required to include a proposal in the proxy
statement for its annual meeting of stockholders to be held in 2009 to amend its
Charter to increase the authorized number of shares of Series B Preferred
Stock.

     

    (c)         Conflicts.  Subject
to Section 4(b)(i) and (ii) above, and to the consent of the Holders to the
execution by the Company of this Agreement, the Notes, the Security Agreement
and the Intellectual Property Security Agreement, neither the authorization,
execution and delivery of this Agreement, the Notes, the Security Agreement, and
the Intellectual Property Security Agreement nor the consummation of the
transactions herein and therein contemplated, will (i) conflict with or result
in a breach of any of the terms of the Company’s Certificate of Incorporation or
By-Laws, (ii) violate any judgment, order, injunction, decree or award of any
court or governmental body, having jurisdiction over the Company, against or
binding on the Company or to which its property is subject, (iii) violate any
material law or regulation of any jurisdiction which is applicable to the
Company, (iv) violate, conflict with or result in the breach or termination of,
or constitute a default under, the terms of any material agreement to which the
Company is a party, except for such violations or defaults which do not
materially and adversely affect the business, assets, operations or financial
condition of the Company, or (v) violate or conflict with the rules and
regulations of the NYSE Alternext LLC (the “NYSE Alternext”) applicable to
the Company.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (d)         Capitalization. The
capitalization of the Company is as set forth on Schedule 4(d)
attached hereto.  The Company has not issued any capital stock since
its most recently filed periodic report under the Securities Exchange Act of
1934, as amended (the “Exchange
Act”), other than pursuant to the exercise of employee stock options
under the Company’s stock option plans and the issuance of shares of Common
Stock to employees pursuant to the Company’s employee stock purchase plan
outstanding as of the date of the most recently filed periodic report under the
Exchange Act.  All of the outstanding shares of capital stock of the
Company are validly issued, fully paid and nonassessable.  Except for
the consents from BIO-RAP Technologies Ltd. (“BIO-RAP”) and from the Holders, no
approval or authorization of any stockholder or the Board of Directors of the
Company is required for the issuance and sale of the Notes.  The
issuance of the Notes pursuant to the provisions of this Agreement will not
violate any preemptive rights or rights of first refusal granted by the Company
that will not be validly waived or complied with, and will be free of any liens
or encumbrances, other than any liens or encumbrances created by or imposed upon
the Holders through no action of the Company.  There are no
stockholders agreements, voting agreements or other similar agreements with
respect to the Company’s capital stock to which the Company is a party or, to
the knowledge of the Company, between or among any of the Company’s
stockholders.

    

    (e)         Litigation. There are
no actions, suits or proceedings at law or in equity or by or before any
governmental instrumentality or other agency or regulatory authority now
pending, or, to the best knowledge of the Company, threatened against the
Company which, if adversely determined, could materially and adversely affect
the business, assets, operations or condition, financial or otherwise, of the
Company. There is no action, suit or proceeding by the Company currently pending
or that the Company currently intends to initiate.

     

    (f)          Compliance with Laws.
The Company is not in violation of any statute, law, rule or regulation, or in
default with respect to any judgment, writ, injunction, decree, rule or
regulation of any court or governmental agency or instrumentality, except for
such violations or defaults which do not materially and adversely affect the
business, assets, operations or condition, financial or otherwise, of the
Company.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (g)         Governmental
Consents.  Subject to the accuracy of the representations and
warranties of the Holders set forth herein, no registration or filing with, or
consent or approval of or other action by, any Federal, state or other
government agency under laws and regulations thereof as now in effect is or will
be necessary for the valid execution, delivery and performance by the Company of
this Agreement, the Security Agreement, and the Intellectual Property Security
Agreement, and the issuance, sale and delivery of the Notes, other than the
filing of a Form D with the SEC and the filings required by state securities
law.

     

    (h)         Title. The Company
has good and marketable title in fee simple to all real property and good and
marketable title to all personal property owned by it which is material to the
business of the Company, in each case free and clear of all liens, encumbrances
and defects except such as do not materially affect the value of such property
and do not interfere with the use made and proposed to be made of such property
by the Company. Any real property and facilities held under lease by the Company
are held by it under valid, subsisting and enforceable leases with such
exceptions as are not material and do not interfere with the use made and
proposed to be made of such property and buildings by the Company.

     

    (i)          Regulatory Matters.
The descriptions of the results of the clinical, pre-clinical and other trials,
studies and tests as set forth in the SEC Documents (as defined in Section
4(k)), provided to the Holders are accurate in all material respects and fairly
present the data derived from such trials, studies and tests. To the Company’s
knowledge, with respect to the Collateral, the Company has operated and
currently is in compliance in all material respects with applicable statutes and
implementing regulations administered or enforced by the United States Food and
Drug Administration (“FDA”). Except as set forth in
the SEC Documents, and except with respect to the Company’s voluntary
termination or suspension of the clinical, pre-clinical and other trials,
studies and tests with respect to the Collateral, the Company has not received
any warning letters or other written correspondence from the FDA and/or any
other governmental entity requiring the termination, suspension or modification
of any clinical, pre-clinical and other trials, studies or tests that are
material to the Collateral, requiring the submission of a Premarket Approval
Application with respect to the Collateral, or requiring the withdrawal,
suspension of use or material modification of any of the Company’s marketing
materials with respect to the Collateral.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    (j)          Material License
Agreements.  Each of the Material License Agreements (as
defined below) is in full force and effect, and neither the Company nor, to its
knowledge, the licensor, is in breach of any Material License Agreement and the
Company is aware of no circumstances or grounds that would reasonably be
expected to give rise to a claim of material breach or right of rescission,
termination, revision, or amendment of any Material License
Agreement.  Subject to obtaining the consent of BIO-RAP, any consent
of the licensor required pursuant to any Material License Agreement in
connection with the transactions contemplated by this Agreement, the Security
Agreement, and the Intellectual Property Security Agreement has been obtained
and is in full force and effect.  As used herein, the term “Material License Agreement”
shall mean:  the Exclusive License Agreement dated as of September 28,
2004 by and between Oxis International, a Delaware corporation, and the Company,
as amended; the License and Research Agreement dated as of July 12, 2004 by and
between BIO-RAP, on its own behalf and on behalf of the Rappaport Family
Institute for Research in the Medical Sciences, and the Company, as amended (the
“BIO-RAP License Agreement”); the License Agreement dated as of February 1, 2009
by and between MicroCoat GmbH and the Company; the Agreement dated as of January
20, 2009 by and among Roche Diagnostics GmbH, F. Hoffmann-La Roche Ltd., Roche
Diagnostic Operations Inc. and the Company; and the License Agreement dated as
of June 15, 2004 by and between BIO-RAP and Associated Regional and University
Pathologists, Inc. doing business as ARUP Laboratories, as assigned to the
Company pursuant to an Assignment Agreement by and between BIO-RAP and the
Company dated as of April 1, 2007.

     

    (k)         SEC Documents; Financial
Statements.  During the two (2) years prior to the date
hereof, the Company has filed all reports, schedules, forms, statements and
other documents required to be filed by it with the SEC pursuant to the
reporting requirements of the Exchange Act (all of the foregoing filed prior to
the date hereof and all exhibits included therein and financial statements,
notes and schedules thereto and documents incorporated by reference therein
being hereinafter referred to as the “SEC
Documents”).  The Company has delivered to the Holders or their
respective representatives true, correct and complete copies of each of the SEC
Documents not available on the Electronic Data Gathering, Analysis, and
Retrieval system of the SEC (“EDGAR”) that have been
requested by each Holder.  As of their respective dates, the SEC
Documents complied as to form in all material respects with the requirements of
the Exchange Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they
were filed with the SEC, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.  As of their respective dates,
the financial statements of the Company included in the SEC Documents complied
as to form in all material respects with applicable accounting requirements and
the published rules and regulations of the SEC with respect thereto as in effect
as of the time of filing.  Such financial statements have been
prepared in accordance with generally accepted accounting principles (“GAAP”), consistently applied,
during the periods involved (except (i) as may be otherwise indicated in
such financial statements or the notes thereto, or (ii) in the case of
unaudited interim statements, to the extent they may exclude footnotes or may be
condensed or summary statements) and fairly present in all material respects the
financial position of the Company as of the dates thereof and the results of its
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments).  The
Company has no liabilities or obligations required to be disclosed in the SEC
Documents that are not so disclosed in the SEC Documents, other than those
incurred in the ordinary course of the Company’s business.  The
information contained in the Company’s interim balance sheet as of September 30,
2008 is true and correct in all material respects.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    (l)          Sarbanes-Oxley; Internal
Accounting Controls.  The Company’s certifying officers have
evaluated the effectiveness of the Company’s disclosure controls and procedures
as of the end of the period covered by the Company’s most recently filed
periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company
presented in its most recently filed periodic report under the Exchange Act the
conclusions of the certifying officers about the effectiveness of the disclosure
controls and procedures based on their evaluations as of the Evaluation
Date.

     

    (m)        Absence of Changes.
Except as disclosed in Schedule 4(m),
since September 30, 2008, and except as otherwise disclosed in the SEC
Documents, the Company has not (i) declared or paid any dividends,
(ii) sold any assets, individually or in the aggregate, in excess of One
Hundred Thousand Dollars ($100,000) outside of the ordinary course of business,
or (iii) had capital expenditures, individually or in the aggregate, in
excess of One Hundred Thousand Dollars ($100,000). During the two (2) years
prior to the date hereof, except as disclosed in the SEC Documents (i) the
Common Stock has been designated for quotation on the NYSE Alternext,
(ii) trading in the Common Stock has not been suspended by the SEC or the
NYSE Alternext and (iii) the Company has received no communication, written
or oral, from the SEC or the NYSE Alternext regarding the suspension or
delisting of the Common Stock from the NYSE Alternext.  The
Company has not taken any steps to seek protection pursuant to any bankruptcy
law nor does the Company have any knowledge or reason to believe that its
creditors intend to initiate involuntary bankruptcy proceedings or any actual
knowledge of any fact which would reasonably lead any creditor or creditors
having claims individually or in the aggregate in excess of One Hundred Thousand
Dollars ($100,000) to do so. The SEC Documents set forth as of the dates thereof
all outstanding secured and unsecured Indebtedness of the Company or any
Subsidiary, or for which the Company or any Subsidiary has commitments. For the
purposes of this Agreement, “Indebtedness” shall mean (a)
any liabilities for borrowed money or amounts owed (other than trade accounts
payable incurred in the ordinary course of business), (b) all guaranties,
endorsements and other contingent obligations in respect of Indebtedness of
others, whether or not the same are or should be reflected in the Company’s
balance sheet (or the notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business; and (c) the present value of any lease payments due
under leases required to be capitalized in accordance with GAAP. Neither the
Company nor any Subsidiary is in default with respect to any
Indebtedness.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    (n)         Patents and
Trademarks. To the Company’s knowledge, the Company has rights to use all
patents, patent applications, trademarks, trademark applications, service marks,
trade names, trade secrets, inventions, copyrights, licenses and other
intellectual property rights and similar rights necessary or material for use in
connection with its business as described in the SEC Documents and which the
failure to so have would have a material adverse effect on the results of
operations, assets, business, or condition (financial or otherwise) of the
Company 
(collectively, the “Intellectual Property
Rights”). The Company has not received any notice (written or otherwise)
that the Intellectual Property Rights used by the Company violate or infringe
upon the rights of any other person or entity. To the knowledge of the Company,
all such Intellectual Property Rights are enforceable and there is no existing
infringement by another person or entity of any of the Intellectual Property
Rights. The Company has taken reasonable security measures to protect the
secrecy, confidentiality and value of all of its Intellectual Property
Rights.

     

    (o)         Labor Relations. No
material labor dispute exists or, to the knowledge of the Company, is imminent
with respect to any of the employees of the Company which could reasonably be
expected to result in a material adverse effect on the results of operations,
assets, business, prospects or condition (financial or otherwise) of the
Company. To the knowledge of the Company, no executive officer is, or is now
expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement or
non-competition agreement, or any other contract or agreement or any restrictive
covenant, and the continued employment of each such executive officer does not
subject the Company to any liability with respect to any of the foregoing
matters. The Company is in compliance with all U.S. federal, state, local and
foreign laws and regulations relating to employment and employment practices,
terms and conditions of employment and wages and hours, except where the failure
to be in compliance could not, individually or in the aggregate, reasonably be
expected to have a material adverse effect on the results of operations, assets,
business, prospects or condition (financial or otherwise) of the
Company.

     

    (p)         Offering.  Assuming
the accuracy of the representations and warranties of the Holders contained in
Section 3 hereof, the offer, issue, and sale of the Notes are exempt from
the registration and prospectus delivery requirements of the Securities Act and
the registration or qualification requirements of all applicable state
securities laws.  Neither the Company nor any authorized agent acting
on its behalf will knowingly take any action hereafter that would cause the loss
of such exemptions.

     

    (q)         Acknowledgment.  The
Company acknowledges that no Holder is acting as a financial advisor or
fiduciary of the Company (or in any similar capacity) with respect to this
Agreement and the transactions contemplated hereby, and any advice given by any
Holder or any of its representatives or agents in connection with this Agreement
and the transactions contemplated hereby is merely incidental to such Holder’s
purchase of the Notes.  The Company further represents to each Holder
that the Company’s decision to enter into this Agreement, the Security
Agreement, and the Intellectual Property Security Agreement and issue the Notes
has been based solely on the independent evaluation by the Company and its
representatives.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    (r)          No General Solicitation;
Placement Agent’s Fees.  Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of
Regulation D of the Securities Act) in connection with the offer or sale of the
Notes.  The Company shall be responsible for the payment of any
placement agent’s fees, financial advisory fees, or brokers’ commissions (other
than for persons engaged by any Holder or its investment advisor) relating to or
arising out of the transactions contemplated hereby.  The Company
shall pay, and hold each Holder harmless against, any liability, loss or expense
(including, without limitation, attorney’s fees and out-of-pocket expenses)
arising in connection with any such claim.  The Company has not
engaged any placement agent or other agent in connection with the sale of the
Notes.

     

    (s)         No Integrated
Offering.  Neither the Company nor any person acting on its
behalf has, directly or indirectly, made any offers or sales of any security or
solicited any offers to buy any security, under circumstances that would require
registration of any of the Notes under the Securities Act or cause this offering
of the Notes to be integrated with prior offerings by the Company for purposes
of the Securities Act or any applicable shareholder approval provisions,
including, without limitation, under the rules and regulations of the NYSE
Alternext or any other exchange or automated quotation system on which any of
the securities of the Company are listed or designated.

     

    (t)          Disclosure.  All
disclosure provided to the Holders with regard to the representations and
warranties contained in this Section 4 regarding the Company, its business and
the transactions contemplated hereby, furnished in writing by Company is true
and correct in all material respects and does not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make
the statements made therein, in the light of the circumstances under which they
were made, not misleading.

     

    (u)         Intellectual Property
Rights. To the Company’s knowledge, the Company owns the rights,
including all Intellectual Property Rights, to the Collateral free and clear of
any license held by third parties and except for obtaining the consent by
Bio-Rap, has the ability to assign its rights therein, including pursuant to the
Security Agreement and the Intellectual Property Security Agreement, without the
consent of any third party.

     

    5.       Affirmative Covenants of the
Company.  From and after the Closing Date and so long as the
Notes remain outstanding, unless it receives the prior written consent of
Holders holding a majority in principal amount of all then outstanding Notes to
act to the contrary, the Company shall comply with the following
covenants:

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    (a)         Financial
Information.  The Company shall use its commercially reasonable
efforts to (1) maintain a system of accounting established and administered in
accordance with GAAP consistently applied, and to (2) set aside on its books,
all such proper reserves as shall be required by GAAP.  Any Holder may
direct the Company by written notice from time to time to provide any or all of
the following materials or information in which case the Company shall furnish
such materials or information, at the Company’s expense, to such
Holder:

     

      
(i)       Unless otherwise filed and
available on the EDGAR system, no later than ninety (90) days after the end of
each fiscal year starting with the Company’s fiscal year ending December 31,
2009, audited consolidated financial statements of the Company, together with
all notes thereto, prepared in reasonable detail in accordance with GAAP,
together with an opinion, based on an audit by independent certified public
accountants selected by the Company, stating that such financial statements have
been so prepared.  The consolidated financial statements of the
Company shall contain a balance sheet as of the end of such fiscal year and a
statement of operations, cash flows and stockholders’ equity for such fiscal
year, each setting forth in comparative form the corresponding figures for the
preceding fiscal year.

     

     
(ii)       Subject to the prior receipt by
the Company of a written Regulation FD-compliant confidentiality agreement from
the requesting Holder, no later than ninety (90) days following the first day of
each fiscal year of the Company, a budget prepared by the Company for each of
the four quarters of such fiscal year prepared in the same level of detail as
prepared for and delivered to the Company’s Board of Directors for the
Company.

     

     
(iii)      Unless otherwise filed and available on
the EDGAR system, no later than forty-five (45) days after the end of each of
the first three fiscal quarters of the Company’s fiscal year, the Company’s
unaudited consolidated balance sheet as of the end of such fiscal quarter and an
unaudited consolidated statement of operations and cash flows for such fiscal
quarter and for the period from the beginning of the then current fiscal year to
the end of such fiscal quarter, setting forth in each case, in comparative form,
figures for the corresponding periods in the preceding fiscal year, all in
reasonable detail and prepared in accordance with GAAP, subject to changes
resulting from normal or recurring year-end adjustments.

     

     
(iv)      Subject to the prior receipt by the
Company of a written Regulation FD-compliant confidentiality agreement from the
requesting Holder, no later than thirty (30) days after the end of each calendar
month, the Company’s unaudited consolidated interim balance sheet as of the end
of such month and the related unaudited consolidated interim statements of
operations and cash flows for such one-month period and the portion of the
fiscal year through the end of such month, setting forth in each case, in
comparative form, figures for the corresponding fiscal periods in the preceding
fiscal year (subject to normal year-end audit adjustments and the absence of
footnote disclosure).

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (b)         Inspections.  The
Company shall, and shall cause its Subsidiaries to, furnish to each Holder any
information which such Holder may from time to time reasonably request
concerning any covenant, provision or condition of this Agreement, the Security
Agreement, and the Intellectual Property Security Agreement or the Notes or any
matter in connection with the Company’s business and
operations.  During normal business hours, upon reasonable notice from
Holders holding a majority in principal amount of all then outstanding Notes,
and without undue interruption of the Company’s business, the Company shall
permit representatives of each Holder, including each Holder’s independent
accountants, agents, attorneys, appraisers and any other representatives, to
visit and inspect any of the Company’s property, including its books of account,
other books and records, and any facilities or other business
assets.  The inspections in accordance with the preceding sentence
shall be limited to no more than four (4) times each calendar year, and all
out-of-pocket costs and expenses of such inspections shall be borne by the
applicable Holders; provided, however, that during
any period in which an Event of Default (as such term is defined in the Notes)
has occurred and is continuing, the number of inspections shall not be limited,
and the reasonable, documented out-of-pocket costs and expenses of the
inspections during the period in which an Event of Default has occurred and is
continuing shall be borne by the Company.  The information and access
set forth in this Section 5(b) shall in each case be subject to the Company’s
prior receipt of a written Regulation FD-compliant confidentiality agreement
from the requesting Holder.

     

    (c)         Compliance with
Laws.  The Company shall comply with applicable laws, rules and
regulations of all governmental authorities, the violation of which might have a
material adverse effect upon its business or financial condition.

     

    (d)         Maintenance of Corporate
Existence and Business. The Company will take such commercially
reasonable action as may from time to time be necessary to preserve its
corporate existence, rights and franchises, maintain its properties in good
repair and to comply with the laws of the United States and all states and
locations in which the Company shall do business as shall be necessary to permit
the Company to conduct its business, and to preserve all of its rights,
franchises and privileges.

     

    (e)         Payment of
Taxes.  The Company shall (i) timely file all required tax
returns; and (ii) timely pay all taxes, assessments, and other governmental
charges or levies imposed upon it or upon its income, profits or property,
except to the extent the same are being contested in good faith and for which
adequate reserves under GAAP have been established.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    (f)          Insurance.  The
Company shall maintain insurance in such amounts and covering such risks as are
usually and customarily carried with respect to the Collateral and any other
assets and property of the Company of a character usually insured by similar
entities engaged in the same or similar businesses as the
Company.  The Company shall at all times maintain insurance against
its liability for injury to persons or property, which insurance shall be by
financially sound and reputable insurers.

     

    (g)         Subordination.  All
existing and hereafter arising Indebtedness of the Company shall be subordinated
to the Indebtedness and other obligations of the Company under this Agreement
and the Notes pursuant to subordination agreements reasonably satisfactory in
form and substance to the each Holder, in their sole and absolute
discretion.

     

    6.       Conditions to
Closing.

     

    (a)         Conditions to the Holders’
Obligations. Each Holder’s obligation to purchase its Notes on the
Closing Date is subject to the following conditions:

     

     
 (i)        The Company’s
representations and warranties contained in Section 4 shall be true and correct
on and as of the Closing Date;

     

     
(ii)       The Company shall deliver to each
Holder at the Closing an executed Note in the form attached hereto as Exhibit A,
respectively, in the original principal amount set forth on Schedule
A;

     

      (iii)     
The Company shall deliver to each Holder at the Closing an executed Security
Agreement, in the form attached hereto as Exhibit B, among the
Company and the collateral agent named therein, as agent for all Holders (the
“Collateral Agent”), to
secure the Company’s obligations under the Notes (the “Security
Agreement”);

     

      (iv)      The
Company shall deliver to each Holder at the Closing an executed Intellectual
Property Security Agreement, in the form attached hereto as Exhibit C, among the
Company and Collateral Agent, to secure the Company’s obligations under the
Notes (the “Intellectual
Property Security
Agreement”);

     

      (v)       The
Company shall deliver to each Holder at the Closing an executed Preferred Stock
Dividend Waiver, in the form attached hereto as Exhibit D, among the
Company and the Preferred Stock Holders (the “Waiver”); and

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

     
(vi)     The Company shall deliver a certificate of the
Secretary of the Company dated the Closing Date, certifying the incumbency and
authority of the officers or authorized signatories of the Company who execute
this Agreement, the Security Agreement, the Intellectual Property Security
Agreement, and the Notes and the truth, correctness and completeness of the
following exhibits which shall be attached thereto:  (i) a copy
of resolutions duly adopted by the Board of Directors of the Company, in full
force and effect at the time this Agreement is entered into, authorizing the
execution of this Agreement, the Security Agreement, the Intellectual Property
Security Agreement, and the Notes and the other documents delivered or to be
delivered in connection herewith and the consummation of the transactions
contemplated herein and therein, as applicable, (ii) a copy of the
Certificate of Incorporation of the Company, and all amendments thereto,
certified by an appropriate official of the Company’s jurisdiction of
incorporation, and (iii) a copy of the By-Laws of the Company.

     

     
(vii)    The opinion of Mintz, Levin, Cohn, Ferris, Glovsky and
Popeo, P.C., counsel to the Company, dated the Closing Date, and in the form
attached hereto as Exhibit E,
subject only to such qualifications, limitations or exceptions as may be
acceptable to each Holder.

     

    (b)         Conditions to the Company’s
Obligations.  The Company’s obligation to issue the Notes to
each Holder on the Closing Date is subject to the condition that the Holder’s
representations and warranties contained in Section 3 shall be true and correct
on and as of the Closing Date.

     

    7.       Other
Agreements.

     

    (a)         In
the event that the Holders vote to authorize any licensing or strategic alliance
transaction between the Company and a third party, involving the grant to that
third party of rights to or interests in the collateral that is the subject of
the Security Agreement and the Intellectual Property Security Agreement (the
“Collateral”), the
Holders shall release their Security Interest (as defined in the Security
Agreement and the Intellectual Property Security Agreement) in such Collateral
to the extent required by such third party.

     

    (b)         At
the Holder’s option, the Company shall use up to 20% of any up-front payment,
milestone payment or option payment received by it from a third party in the
form of cash in connection with any licensing or strategic alliance transaction
(whether or not relating to the Collateral) to repurchase shares of Preferred
Stock from the Holders at a price of $2.50 per share of Preferred
Stock.

     

    (c)         Promptly
following the date of this Agreement, the Company shall file a Certificate of
Designations with the Secretary of State of the State of Delaware to designate
2,100,000 shares of its currently undesignated Preferred Stock, $0.01 par value
per share, as Series B Preferred Stock, in order to make such shares available
for the payment to the Holders of dividends on such shares of Series B Preferred
Stock, pursuant to the terms of the Charter.  In the event that the
dividends payable under the Charter to the Holders are likely to exceed
2,100,000 shares of Series B Preferred Stock, the Company shall include a
proposal in the proxy statement for its annual meeting of stockholders to be
held in 2009 to amend its Charter to increase the authorized number of shares of
Series B Preferred Stock.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    (d)         Upon
an Event of Default by the Company and if, and only if, the Holders take
possession of the Collateral, the Holders shall assume all rights and
obligations of the Company under the BIO-RAP License Agreement, and shall
execute any amendments to such BIO-RAP License Agreement as BIO-RAP shall
reasonably request in order to evidence such assumption.

    

    (e)         The
Company shall prepay all amounts which may become due to BIO-RAP under the
BIO-RAP License Agreement through December 31, 2009 in advance.

    

    (f)          The
Company shall obtain the consent of BIO-RAP to the grant of the security
interest by the Company to the Holders pursuant to the Security Agreement and
the Intellectual Property Security Agreement in a form reasonably acceptable to
the Holders by February 24, 2009.

    

    8.       Binding
Effect.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their heirs, executors, administrators,
successors, legal representatives, and permitted assigns.

     

    9.       Amendment.  The
terms of this Agreement shall not be amended or modified except by a writing
signed by the Company and holders of a majority in principal amount of the then
outstanding Notes; provided, however, that if
there are no Notes then outstanding, this Agreement shall not be amended or
modified except by a writing signed by the Company and the Collateral
Agent.

     

    10.     Notices.  All
notices, requests, consents and other communications hereunder shall be in
writing, shall be addressed to the receiving party’s address set forth below or
to such other address as a party may designate by notice hereunder, and shall be
either (i) delivered by hand, (ii) sent by overnight courier, with
receipt acknowledgment, or (iii) sent by certified mail, return receipt
requested, postage prepaid.

     

    
      
        
          
            
              
                
                  
                    
                      	
                              If
      to a Holder:

                            	
                              To
      its address set forth on Schedule
      A:

                            
	 	 
	
                              If
      to the Company:

                            	
                              Synvista
      Therapeutics, Inc.

                            
	 
      	
                              221
      West Grand Avenue

                            
	 
      	
                              Montvale,
      NJ 07645

                            
	 
      	
                              Fax:  (201)
      934-0090

                            
	 
      	
                              Attn:
      Noah Berkowitz, President

                            
	 	 
	
                              and
      to:

                            	
                              Mintz,
      Levin, Cohn, Ferris, Glovsky and Popeo,
P.C.

                            

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	 
      	
                                One
      Financial Center

                              
	 
      	
                                Boston,
      MA  02111

                              
	 
      	
                                Fax:
      (617) 542-2241

                              
	 
      	
                                Attn:  William
      T. Whelan,
Esq.

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    All
notices, requests, consents and other communications hereunder shall be deemed
to have been given (i) if by hand, at the time of the delivery thereof to
the receiving party at the address of such party set forth above, (ii) if
made by telecopy or facsimile transmission, at the time that receipt thereof has
been acknowledged by electronic confirmation or otherwise, (iii) if sent by
overnight courier, on the next business day (or if sent overseas, on the second
business day) following the day such notice is delivered to the courier service,
or (iv) if sent by certified mail, on the 5th business day (or if sent
overseas, on the 10th business day) following the day such mailing is
made.

     

    11.     Assignability.  This
Agreement and the rights, interests and obligations hereunder are not
transferable or assignable by the Holders, except in connection with a transfer
or assignment of the Notes in accordance with their terms.

     

    12.     Applicable
Law.  This Agreement shall be governed by and construed in
accordance with the internal law of the State of New York without regard to its
conflicts of laws principles.

     

    13.     Confidentiality.  Each
Holder acknowledges and agrees that any information or data it has or will
acquire from or about the Company, not otherwise properly in the public domain,
was received in confidence.  Each Holder agrees not to divulge,
communicate or disclose, except as may be required by law or for the performance
of this Agreement, or use other than in connection with its investment in the
Company, any confidential information of the Company, including any scientific,
technical, trade or business secrets of the Company and any scientific,
technical, trade or business materials that are treated by the Company as
confidential or proprietary, including, but not limited to, ideas, discoveries,
inventions, developments and improvements belonging to the Company and
confidential information obtained by or given to the Company about or belonging
to third parties.

     

    14.     Authorization of
Agent.  Each of the undersigned Holders authorizes the
Collateral Agent to act as its agent for all purposes under the Security
Agreement and the Intellectual Property Security Agreement and to take any and
all actions that such agent deems reasonably necessary, appropriate or advisable
under the Security Agreement and the Intellectual Property Security
Agreement.  The Collateral Agent shall have the right to make demands,
to give notices, to exercise or refrain from exercising any rights, and to take
or refrain from taking action (including, without limitation, the release or
substitution of the Collateral), in accordance with this Agreement, the Security
Agreement and the Intellectual Property Security Agreement.  The
Collateral Agent may employ agents and attorneys-in-fact in connection herewith
and shall not be liable for the gross negligence or misconduct of any such
agents or attorneys-in-fact selected by it in good faith.  The
Collateral Agent shall be entitled to rely upon any written notice, statement,
certificate, order or other document believed by it to be genuine and correct
and to have been signed, sent or made by the proper person, and, with respect to
all matters pertaining to this Agreement, the Security Agreement and the
Intellectual Property Security Agreement and its duties hereunder and
thereunder, upon advice of counsel selected by it.  The Collateral
Agent shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral in its possession if such Collateral is accorded
treatment substantially equivalent to that which the Collateral Agent, in its
individual capacity, accords its own property consisting of similar instruments
or interests, it being understood that neither the Collateral Agent nor any of
the Holders shall have responsibility for taking any necessary steps to preserve
rights against any person or entity with respect to any Collateral.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    15.     Fees and
Expenses.  The Company shall reimburse the Holders for
reasonable legal fees and disbursements in connection with the documentation and
implementation of the transactions contemplated by this Agreement, subject to a
maximum of Forty Thousand Dollars ($40,000).  Except as otherwise set
forth above or in the Security Agreement or the Intellectual Property Security
Agreement, each party to this Agreement shall bear its own expenses in
connection with the issuance of the Notes to the Holders.  Without
limiting the generality of the foregoing, the Company shall be responsible for
the payment of any placement agent’s fees, financial advisory fees, or broker’s
commissions relating to or arising out of the transactions contemplated hereby,
including, without limitation, any fees payable to the Agent; and the Company
shall pay, and hold each Holder harmless against, any liability, loss or expense
(including, without limitation, reasonable attorney’s fees and out-of-pocket
expenses) arising in connection with any claim relating to any such
payment.

     

    16.     Indemnification. In
consideration of each Holder’s execution and delivery of this Agreement, the
Security Agreement, the Intellectual Property Security Agreement and the Waiver,
to which such Holder may be a party, and each Holder’s acquisition of the Notes
hereunder and in addition to all of the Company’s other obligations under this
Agreement, the Security Agreement, the Intellectual Property Security Agreement,
the Waiver and the Notes (collectively with any other documents contemplated
thereby, the “Transaction
Documents”), the Company shall defend, protect, indemnify and hold
harmless each Holder and each other holder of the Notes and all of their
shareholders, partners, members, officers, directors, employees and any of the
foregoing persons’ agents or other representatives (including, without
limitation, those retained in connection with the transactions contemplated by
this Agreement) (collectively, the “Indemnitees”) from and against
any and all actions, causes of action, suits, claims, losses, costs, penalties,
fees, liabilities and damages, and expenses in connection therewith
(irrespective of whether any such Indemnitee is a party to the action for which
indemnification hereunder is sought), and including reasonable attorneys’ fees
and disbursements (the “Indemnified Liabilities”),
incurred by any Indemnitee as a result of, or arising out of, or relating to (a)
any misrepresentation or breach of any representation or warranty made by the
Company in the Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby, (b) any breach of any covenant,
agreement or obligation of the Company contained in the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby, or
(c) any cause of action, suit or claim brought or made against such Indemnitee
by a third party (including for these purposes a derivative action brought on
behalf of the Company) and arising out of or resulting from (i) the execution,
delivery, performance or enforcement of the Transaction Documents, or (ii) the
status of such Holder or other holder of the Notes as a lender to or an investor
in the Company pursuant to the transactions contemplated by the Transaction
Documents. To the extent that the foregoing undertaking by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities which is
permissible under applicable law.

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

       

    

    17.     Independent Nature of
Holders’ Obligations and Rights.  The obligations of each
Holder under any Transaction Document are several and not joint with the
obligations of any other Holder, and no Holder shall be responsible in any way
for the performance of the obligations of any other Holder under any Transaction
Document.  Nothing contained herein or in any other Transaction
Document, and no action taken by any Holder pursuant hereto or thereto, shall be
deemed to constitute the Holders as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the Holders
are in any way acting in concert or as a group with respect to such obligations
or the transactions contemplated by the Transaction Documents and the Company
acknowledges that the Holders are not acting in concert or as a group with
respect to such obligations or the transactions contemplated by the Transaction
Documents.  Each Holder confirms that it has independently
participated in the negotiation of the transaction contemplated hereby with the
advice of its own counsel and advisors.  Each Holder shall be entitled
to independently protect and enforce its rights, including, without limitation,
the rights arising out of this Agreement or out of any other Transaction
Documents, and it shall not be necessary for any other Holder to be joined as an
additional party in any proceeding for such purpose.

    

    18.     Miscellaneous.

     

    (a)     
This Agreement, together with the Notes, the Security Agreement, the Waiver and
the Intellectual Property Security Agreement, constitute the entire agreement
between the Holders and the Company with respect to the subject matter hereof
and supersede all prior oral or written agreements and understandings, if any,
relating to the subject matter hereof; provided, however, (i) any
agreement pertaining to confidentiality is not superseded and shall remain in
full force and effect, (ii) the Term Sheet (section entitled “Effect of Term
Sheet” and “Fees”) shall remain in full force and effect, and (iii) the
provisions of the Charter and the Series B Preferred Stock and Warrant Purchase
Agreement dated as of April 5, 2007, by and among the Company and the Holders,
as amended, regarding the provisions of the Series B Preferred Stock are not
superseded and shall remain in full force and effect.

     

    (b)       The
representations, warranties, covenants and agreements of the parties made in
this Agreement shall survive the execution and delivery hereof and the issuance
and delivery of the Notes.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

       

    

    (c)       The
Company shall issue new Notes in place of any previously issued Notes alleged to
have been lost, stolen or destroyed, upon such terms and conditions as the Board
of Directors may prescribe, including the presentation of reasonable evidence of
such loss, theft or destruction (provided that an affidavit of a holder will be
satisfactory for such purpose) and the giving of such indemnity as the Company’s
Board of Directors may request for the protection of the Company or any transfer
agent or registrar.  Upon surrender of any previously issued Notes
that has been mutilated, the Company shall issue new Notes in place
thereof.

     

    (d)       Each
provision of this Agreement shall be considered separable and if for any reason
any provision or provisions hereof are determined to be invalid or contrary to
applicable law, such invalidity shall not impair the operation of or affect the
remaining portions of this Agreement.

     

    (e)       Section
titles are for descriptive purposes only and shall not control or alter the
meaning of this Agreement as set forth in the text.

     

    (f)        This
Agreement may be executed in one or more counterparts each of which shall be
deemed an original, but all of which shall together constitute one and the same
instrument.

     

    [Signature Page is
Next]

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement or caused this
Agreement to be executed by their duly authorized representatives as of the day
and date first written above.

    

    
      
        
          
            
              
                	 
      	
                        SYNVISTA
      THERAPEUTICS, INC.

                      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                        By: 

                      	  /s/ Noah Berkowitz, M.D.,
      Ph.D.
	 
      	
                        Name:

                      	
                        Noah
      Berkowitz, M.D., Ph.D.

                      
	 
      	
                        Title:

                      	
                        President
      and Chief Executive
Officer

                      

              

            

          

        

      

    

    

    Counterpart
Signature Pages

    Begin on
Next Page

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    Counterpart Signature Page
For Holders

     

    The
undersigned hereby agrees to become a party to that certain Note Purchase
Agreement dated as of February 24, 2009 (the “Agreement”) among Synvista
Therapeutics, Inc., a Delaware corporation (the “Company”) and
others.  From and after the undersigned’s execution and delivery and
the Company’s acceptance of this Counterpart Signature Page, the undersigned
shall be a party to the Agreement and the Notes purchased by the undersigned
shall be deemed to be “Notes” for all purposes of the Agreement.

     

    Baker/Tish
Investments, L.P.

    By:
Baker/Tisch Capital, L.P. (general partner)

    By:
Baker/Tisch Capital (GP), LLC, (general partner)

    
      
        
           

          
            
              
                
                  
                    
                      
                        	
                                By:

                              	
                                /s/  Julian Baker

                              
	
                                Name:
      Julian Baker

                              
	
                                Title:
      Managing
Member

                              

                      

                    

                  

                

              

            

          

        

      

    

    

    Notes
Amount: US$
16,302.09

    

    
      Tax ID
Number: _______

    

    

    
      Address:

    

    

    667
Madison Avenue

    21st
Floor

    New York,
New York 10065

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    Counterpart Signature Page
For Holders

     

    The
undersigned hereby agrees to become a party to that certain Note Purchase
Agreement dated as of February 24, 2009 (the “Agreement”) among Synvista
Therapeutics, Inc., a Delaware corporation (the “Company”) and
others.  From and after the undersigned’s execution and delivery and
the Company’s acceptance of this Counterpart Signature Page, the undersigned
shall be a party to the Agreement and the Notes purchased by the undersigned
shall be deemed to be “Notes” for all purposes of the Agreement.

    

    Baker
Bros. Investments II, L.P.

    By: Baker
Bros. Capital, L.P., (general partner)

    By: Baker
Bros. Capital (GP), LLC, (general partner)

    

    
      
        
          
            	
                    By:

                  	
                     /s/ Julian Baker

                  
	
                    Name: Julian
      Baker

                  
	
                    Title:
      Managing Member

                  

          

        

      

    

    

    Notes
Amount: US$
2,141.40

    

    
      Tax ID
Number: _______

    

    

    
      Address:

    

    

    667
Madison Avenue

    21st
Floor

    New York,
New York 10065

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    Counterpart Signature Page
For Holders

     

    The
undersigned hereby agrees to become a party to that certain Note Purchase
Agreement dated as of February 24, 2009 (the “Agreement”) among Synvista
Therapeutics, Inc., a Delaware corporation (the “Company”) and
others.  From and after the undersigned’s execution and delivery and
the Company’s acceptance of this Counterpart Signature Page, the undersigned
shall be a party to the Agreement and the Notes purchased by the undersigned
shall be deemed to be “Notes” for all purposes of the Agreement.

    

    Baker
Brothers Life Sciences, L.P.

    By: Baker
Brothers Life Sciences Capital, L.P. (general partner)

    By: Baker
Brothers Life Sciences Capital (GP), LLC, (general partner)

    

    
      
        
          
            	
                    By:

                  	
                     /s/ Julian Baker

                  
	
                    Name: Julian
      Baker

                  
	
                    Title:
      Managing Member

                  

          

        

      

    

    

    Notes
Amount: US$
1,708,633.80

    

    
      Tax ID
Number: _______

    

    

    
      Address:

    

    

    667
Madison Avenue

    21st
Floor

    New York,
New York 10065

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    Counterpart Signature Page
For Holders

     

    The undersigned hereby agrees to become
a party to that certain Note Purchase Agreement dated as of February 24, 2009
(the “Agreement”) among
Synvista Therapeutics, Inc., a Delaware corporation (the “Company”) and
others.  From and after the undersigned’s execution and delivery and
the Company’s acceptance of this Counterpart Signature Page, the undersigned
shall be a party to the Agreement and the Notes purchased by the undersigned
shall be deemed to be “Notes” for all purposes of the Agreement.

    

    667,
L.P.

    By: Baker
Biotech Capital, L.P. (general partner)

    By: Baker
Biotech Capital (GP), LLC (general partner)

     

    
      	
              By:

            	
               /s/ Julian Baker

            
	
              Name: Julian
      Baker

            
	
              Title:
      Managing Member

            

    

     

    Notes
Amount: US$
629,567.27

    

    
      Tax ID
Number: _______

    

    

    
      Address:

    

    

    667
Madison Avenue

    21st
Floor

    New York,
New York 10065

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    Counterpart Signature Page
For Holders

     

    The undersigned hereby agrees to become
a party to that certain Note Purchase Agreement dated as of February 24, 2009
(the “Agreement”) among
Synvista Therapeutics, Inc., a Delaware corporation (the “Company”) and
others.  From and after the undersigned’s execution and delivery and
the Company’s acceptance of this Counterpart Signature Page, the undersigned
shall be a party to the Agreement and the Notes purchased by the undersigned
shall be deemed to be “Notes” for all purposes of the Agreement.

    

    14159,
L.P.

    By: 14159
Capital, L.P., (general partner)

    By: 14159
Capital (GP), LLC (general partner)

    

    
      
        
          
            	
                    By:

                  	
                     /s/ Julian Baker

                  
	
                    Name: Julian
      Baker

                  
	
                    Title:
      Managing Member

                  

          

        

      

    

    

    Notes
Amount: US$
55,191.06

    

    
      Tax ID
Number: _______

    

    

    
      Address:

    

    

    667
Madison Avenue

    21st
Floor

    New York,
New York 10065

    

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    Counterpart Signature Page
For Holders

     

    The undersigned hereby agrees to become
a party to that certain Note Purchase Agreement dated as of February 24, 2009
(the “Agreement”) among
Synvista Therapeutics, Inc., a Delaware corporation (the “Company”) and
others.  From and after the undersigned’s execution and delivery and
the Company’s acceptance of this Counterpart Signature Page, the undersigned
shall be a party to the Agreement and the Notes purchased by the undersigned
shall be deemed to be “Notes” for all purposes of the Agreement.

    

    Atticus
Global Advisors, Ltd.

     

    
      
        
          
            	
                    By:

                  	
                    /s/  Matthew
Edmonds

                  
	
                    Name: Matthew
      Edmonds

                  
	Title:   Director

          

        

      

    

    

    Notes
Amount: US$
401,972.60

    

    
      Tax ID
Number: _______

    

    

    
      Address:

    

    

    
      c/o
Atticus Capital LP

    

    
      767 Fifth
Avenue

    

    
      New York,
New York 10153

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    Counterpart Signature Page
For Holders

     

    The undersigned hereby agrees to become
a party to that certain Note Purchase Agreement dated as of February 24, 2009
(the “Agreement”) among
Synvista Therapeutics, Inc., a Delaware corporation (the “Company”) and
others.  From and after the undersigned’s execution and delivery and
the Company’s acceptance of this Counterpart Signature Page, the undersigned
shall be a party to the Agreement and the Notes purchased by the undersigned
shall be deemed to be “Notes” for all purposes of the Agreement.

    

    Green
Way Managed Account Series, Ltd., in respect of its segregated account, Green
Way Portfolio D

    By:
Atticus Capital LP, its subadvisor

    

    
      
        
          
            	
                    By:

                  	
                     /s/ Matthew Edmonds

                  
	
                    Name: Matthew
      Edmonds

                  
	Title:   President

          

        

      

    

    

    Notes
Amount: US$
57,424.66

    

    
      Tax ID
Number: _______

    

    

    
      Address:

    

    

    
      c/o
Atticus Capital LP

    

    
      767 Fifth
Avenue

    

    
      New York,
New York 10153

    

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    
      SCHEDULE
A

    

    

    HOLDERS

    

    
      
        
          
            
              
                
                  
                    	
                            Holder Name and Address

                          	 	
                            Amount of Notes

                          	 
	
                            Baker/Tish Investments, L.
      P.

                            667
      Madison Avenue

                            21st
      Floor

                            New
      York, New York 10065

                          	 	$	16,302.09	 
	
                            Baker
      Bros. Investments II, L.P.

                            667
      Madison Avenue

                            21st
      Floor

                            New
      York, New York 10065

                          	 	$	2,141.40	 
	
                            Baker
      Brothers Life Sciences, L.P.

                            667
      Madison Avenue

                            21st
      Floor

                            New
      York, New York 10065

                          	 	$	1,708,633.80	 
	
                            667,
      L.P.

                            667
      Madison Avenue

                            21st
      Floor

                            New
      York, New York 10065

                          	 	$	629,567.27	 
	
                            14159,
      L.P.

                            667
      Madison Avenue

                            21st
      Floor

                            New
      York, New York 10065

                          	 	$	55,191.06	 
	
                            Atticus
      Global Advisors, Ltd.

                            c/o
      Atticus Capital LP

                            767
      Fifth Avenue

                            New
      York, New York 10153

                          	 	$	401,972.60	 
	
                            Green
      Way Managed Account Series, Ltd., in respect of its segregated account,
      Green Way Portfolio D

                            c/o
      Atticus Capital LP

                            767
      Fifth Avenue

                            New
      York, New York 10153

                          	 	$	57,424.66	 
	
                            Total:

                          	 	$	2,871,232.88	 

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    FORM OF SENIOR SECURED
PROMISSORY NOTE

     

    See
attached.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    FORM OF SECURITY
AGREEMENT

     

    See
attached.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    FORM OF INTELLECTUAL
PROPERTY SECURITY AGREEMENT

     

    See
attached.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
D

     

    FORM OF PREFERRED STOCK
DIVIDEND WAIVER

     

    See
attached.

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