Document:

Exhibit 10.4

ESCROW AGREEMENT

          THIS
ESCROW AGREEMENT (“Agreement”) is made and entered into as of the 18th
day of September 2007, by and among JPMorgan Chase Bank, N.A. (the “Escrow
Agent”), Delcath Systems, Inc., a Delaware corporation (the “Company”),
Canaccord Adams Inc. (“Canaccord”) and ThinkEquity Partners LLC (“ThinkEquity”
and together with Canaccord, the “Placement Agents”). Canaccord is
acting as the lead placement agent (the “Lead Placement Agent”).

Background

          WHEREAS,
the Company proposes to sell an aggregate of up to 3,833,108 shares of its
common stock, par value $0.01 per share (“Common Stock”), and warrants
to purchase up to 1,916,554 shares of the Company’s Common Stock (collectively,
the “Securities”), for an aggregate purchase price of up to
$14,182,499.60, all as described in the subscription agreements (collectively,
the “Subscription Agreements”) dated the date hereof between the Company
and each purchaser named therein (each a “Purchaser,” and collectively,
the “Purchasers”);

          WHEREAS,
the Securities are being offered by the Company to purchasers identified by the
Placement Agents, pursuant to the terms of the Subscription Agreements and the
Placement Agency Agreement (the “Placement Agency Agreement”) dated September
18, 2007 between the Company and the Placement Agents;

          WHEREAS,
unless the transactions contemplated by the Subscription Agreements and the
Placement Agency Agreement have been abandoned pursuant to the terms thereof,
or unless otherwise agreed to by the Company and the Placement Agents, the
closing of the purchase and sale of the Securities shall take place on
September 21, 2007 (the “Closing Date”);

          WHEREAS,
with respect to certain subscription payments received from the Purchasers, the
Company and the Placement Agents propose to establish an escrow account with
the Escrow Agent in the name of the Company at 4 New York Plaza, 21st Floor,
New York, New York 10004; and

          WHEREAS,
the Escrow Agent is willing to receive and disburse the proceeds from the
offering of the Securities in accordance herewith. The Escrow Agent’s duties
are limited to this Agreement and shall only act in accordance with the terms
and conditions contained herein.

Terms

          NOW,
THEREFORE, in consideration of the mutual agreements contained herein and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

          1. Deposit
of Escrowed Funds. Each Purchaser for the Securities identified on Exhibit
A attached hereto shall wire or deposit with the Escrow Agent immediately
available funds of such Purchaser delivered in payment for the Securities such
Purchaser agrees to purchase (the “Escrowed Funds”). Upon receipt of funds
from each Purchaser, the Escrow Agent shall credit such funds to a non-interest
bearing account held by the Escrow Agent. The 

wire
instructions to which each Purchaser shall wire or deposit such funds are set
forth in the notice provision for the Escrow Agent in Section 9 to this
Agreement.

          2. Acceptance.
Upon receipt of the Escrowed Funds, the Escrow Agent shall acknowledge such
receipt in writing (which may be via electronic mail) to the Company and the
Placement Agents and shall hold and disburse the same pursuant to the terms and
conditions of this Agreement. The Escrow Agent shall have no duty to verify
whether the amounts and property delivered comport with the requirements of any
other agreement.

          3. List
of Purchasers. Exhibit A hereto contains the name of, the address
of, the number of Securities subscribed for by, and the subscription amount to
be delivered to the Escrow Agent on behalf of, each Purchaser whose funds are
being deposited. The Escrow Agent shall notify the Placement Agents and the
Company of any discrepancy between the subscription amounts set forth on any
list delivered pursuant to this Section 3 and the subscription amounts received
by the Escrow Agent. The Escrow Agent is authorized to augment such list to reflect
the actual subscription amounts received and the release of any subscription
amounts pursuant to Section 4.

          4. Withdrawal
of Subscription Amounts.

                    (a)
If the Escrow Agent shall receive a notice, substantially in the form of Exhibit
B hereto (an “Offering Termination Notice”) from the Company, the
Escrow Agent shall promptly after receipt of such Offering Termination Notice,
send to each Purchaser listed on the list held by the Escrow Agent pursuant to
Section 3 whose total subscription amount shall not have been released pursuant
to paragraph (b) or (c) of this Section 4, in the manner set forth in paragraph
(d) of this Section 4, a check to the order of such Purchaser in the amount of
the remaining subscription amount held by the Escrow Agent on behalf of such
Purchaser as set forth on such list held by the Escrow Agent. The Escrow Agent
shall notify the Company and the Placement Agents of the distribution of such
funds to the Purchasers.

                    (b)
In the event that (i) the Securities have been subscribed for and funds in
respect thereof shall have been deposited with the Escrow Agent in accordance
with this Agreement and (ii) no Offering Termination Notice shall have been
delivered to the Escrow Agent, the Company and the Placement Agents shall
deliver to the Escrow Agent a joint notice, not more than three (3) Business
Days prior to the Closing Date, substantially in the form of Exhibit C
hereto (a “Closing Notice”), designating the proceeds which are to be
distributed on such Closing Date, and identifying the Purchasers and the number
of Securities to be sold to each thereof on such Closing Date. The Escrow
Agent, after receipt of such Closing Notice, on such Closing Date, shall pay,
in federal or other immediately available funds and otherwise in the manner
specified in such Closing Notice, an amount equal to the aggregate of the
subscription amounts paid by the Purchasers identified in such Closing Notice
for the Securities to be sold on such Closing Date as set forth on the list
held by the Escrow Agent pursuant to Section 3.

                    (c)
If at any time and from time to time prior to the release of any Purchaser’s
total subscription amount pursuant to paragraph (a) or (b) of this Section 4
from escrow, the Company shall deliver to the Escrow Agent a notice,
substantially in the form of Exhibit D hereto (a “Subscription
Termination Notice”), to the effect that any or all of the subscriptions of

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such Purchaser
have been rejected by the Company (a “Rejected Subscription”), the
Escrow Agent, promptly after receipt of such Subscription Termination Notice,
shall promptly send to such Purchaser, in the manner set forth in paragraph (d)
of this Section 4, a check to the order of such Purchaser in the amount of such
Rejected Subscription amount.

                    (d)
For the purposes of this Section 4, any check that the Escrow Agent shall be
required to send to any Purchaser shall be sent to such Purchaser by first
class mail, postage prepaid, at such Purchaser’s address furnished to the
Escrow Agent pursuant to Section 3.

          5. Escrow
Agent; Duties and Liabilities.

                    (a)
It is expressly understood and agreed by the parties that (i) the duties of the
Escrow Agent, as herein specifically provided, are purely ministerial in
nature; (ii) the Escrow Agent shall not have any duty to deposit the Escrowed
Funds except as provided herein, (iii) the Escrow Agent shall not be
responsible or liable in any manner whatsoever for, or have any duty to inquire
into, the sufficiency, correctness, genuineness or validity of the notices it
receives hereunder, or the identity, authority or rights of any of the parties;
(iv) the Escrow Agent shall have no duties or responsibilities in connection
with the Escrowed Funds, other than those specifically set forth in this
Agreement; (v) the Escrow Agent shall not incur any liability in acting upon
any signature, written notice, request, waiver, consent, receipt, or any other
paper or document believed by the Escrow Agent to be genuine; (vi) the Escrow
Agent may assume that any person purporting to have authority to give notices
on behalf of any of the parties in accordance with the provisions hereof has
been duly authorized to do so; (vii) the Escrow Agent shall incur no liability
whatsoever except for such resulting from its bad faith, willful misconduct or
gross negligence, as long as the Escrow Agent has acted in good faith in
performance of its duties hereunder; and (viii) upon the Escrow Agent’s performance
of its obligations under Section 4 hereof, the Escrow Agent shall be relieved
of all liability, responsibility and obligation with respect to the Escrowed
Funds or arising out of or under this Agreement.

                    (b)
The Escrow Agent shall not be under any obligation to take any legal action in
connection with this Agreement or towards its enforcement or performance, or to
appear in, prosecute or defend any action or legal proceeding, or to file any
return, or pay or withhold any income or other tax payable with respect to any
Escrowed Funds or the disbursement thereof, any payment of or in respect of
which shall constitute a Loss under Section 6 below, and the Placement Agents
and the Company agree to provide to the Escrow Agent such information and
documentation as the Escrow Agent may reasonably request in connection
therewith.

                    (c)
In the event of any disagreement relating to the Escrowed Funds or the
disbursement thereof resulting in adverse claims or demands being made in
connection with the Escrowed Funds or in the event that the Escrow Agent is in
doubt as to what action it should take hereunder, the Escrow Agent shall be
entitled to retain the Escrowed Funds, but only to the extent of the Escrowed
Funds in controversy, until the Escrow Agent shall have received a final
non-appealable order of a court of competent jurisdiction directing delivery of
the Escrowed Funds, in which event the Escrow Agent shall disburse the Escrowed
Funds in accordance with such order. Any court order shall be accompanied by a
legal opinion by counsel for the presenting party satisfactory to the Escrow
Agent to the effect that the order is final and non-

-3-

appealable.
The Escrow Agent shall act on such court order and legal opinion without
further question. If a proceeding for such determination is not begun and
diligently continued, the Escrow Agent may make an ex parte application, or
bring any appropriate action, for leave to deposit the Escrowed Funds in the
Supreme Court of the State of New York, County of New York seeking such
determination or such declaratory relief as the Escrow Agent shall deem
reasonably necessary under the circumstances, and the parties each hereby
irrevocably consent to the entering of such an ex parte order pursuant to all
applicable laws, rules and procedures of the State of New York and such court.
The Escrow Agent shall be reimbursed by the Company, for all of the Escrow
Agent’s reasonable costs and expenses of such action or proceeding, including,
without limitation, reasonable attorneys’ fees and disbursements.

                    (d)
The Escrow Agent does not have any interest in the Escrowed Funds deposited
hereunder and is serving as escrow agent only and having only possession
thereof. Section 5(c), Section 5(d) and Section 6 shall survive any termination
of this Agreement or the resignation or removal of the Escrow Agent in
accordance with Section 5(h) below except with regards to Section 7 in the
event the Escrow Agent is not paid its annual administration fee.

                    (e)
None of the provisions of this Agreement shall require the Escrow Agent to
expend or risk its own funds or otherwise to incur any liability, financial or
otherwise, in the performance of any of its duties hereunder, or in the
exercise of any of its rights or powers if it shall have reasonable grounds for
believing that repayment of such funds or indemnity satisfactory to it against
such risk or liability is not assured to it.

                    (f)
The Escrow Agent may consult with independent counsel and the advice or any
opinion of counsel shall be full and complete authorization and protection in
respect of any action taken or omitted by it hereunder in good faith and in
accordance with such advice or opinion of counsel.

                    (g)
The Escrow Agent may execute any of the trusts or powers hereunder or perform
any duties hereunder either directly or through agents, attorneys, custodians
or nominees appointed with due care, and shall not be responsible for any willful
misconduct or gross negligence on the part of any agent, attorney, custodian or
nominee so appointed.

                    (h)
The Escrow Agent may at any time resign by giving ten (10) days written notice
of resignation to the Company and the Placement Agents. Upon receiving such
notice of resignation, the Company and the Placement Agents shall promptly
appoint a successor and, upon the acceptance by the successor of such
appointment, release the resigning Escrow Agent from its obligations hereunder (other
than obligations and liabilities arising by reason of the prior bad faith,
willful misconduct or gross negligence of the Escrow Agent) by written
instrument, a copy of which instrument shall be delivered to the resigning
Escrow Agent and the successor. If no successor shall have been so appointed
and have accepted appointment within forty-five (45) days after the giving of
such notice of resignation, the resigning Escrow Agent may petition any court
of competent jurisdiction for the appointment of a successor.

          The
Company and the Placement Agents, by issuing a joint written instruction to the
Escrow Agent, shall have the right to terminate the appointment of the Escrow
Agent. Such joint written instruction shall specify the date upon which such
termination shall take effect.

-4-

Thereafter,
the Escrow Agent shall have no further obligation hereunder (other than
obligations and liabilities arising by reason of the prior bad faith, willful
misconduct or gross negligence of the Escrow Agent) except to hold the Escrowed
Funds as depository. The Company and the Placement Agents agree that in the
event of such termination, they will cooperate with each other to jointly
appoint a banking corporation, trust company or attorney as successor Escrow Agent.
The Escrow Agent shall refrain from taking any action until receiving written
instructions jointly signed by the Company and the Placement Agents designating
the successor Escrow Agent.

                    (i)
Any partnership or other similar entity into which the Escrow Agent may be
merged or converted or with which it may be consolidated, or any partnership,
corporation or other similar entity resulting from any merger, conversion or
consolidation to which the Escrow Agent shall be a party, or any partnership,
corporation or other similar entity succeeding to the business of the Escrow
Agent shall be the successor of the Escrow Agent hereunder without the
execution or filing of any paper with any party hereto or any further act on
the part of any of the parties hereto except where an instrument of transfer or
assignment is required by law to effect such succession, anything herein to the
contrary notwithstanding.

                    (j)
No printed or other matter in any language which mentions the Escrow Agent’s
name or the rights, powers, or duties of the Escrow Agent shall be issued by
the other parties hereto or on such parties’ behalf unless the Escrow Agent
shall first have given its specific written consent thereto. The Escrow Agent
hereby consents to the use of its name and the reference to the escrow
arrangement in the Subscription Agreements and the Placement Agency Agreement.

          6. Indemnification
of Escrow Agent. The Company hereby agrees to indemnify and hold the Escrow
Agent harmless from any and all liabilities, obligations, damages, losses,
claims, encumbrances, costs or expenses (including, without limitation, court
costs, reasonable attorneys’ fees and expenses) (any or all of the foregoing
herein referred to as a “Loss”) arising hereunder or under or with
respect to the Escrowed Funds, except for Losses resulting from the bad faith,
willful misconduct or gross negligence of the Escrow Agent. Anything in this
Agreement to the contrary notwithstanding, in no event shall the Escrow Agent
be liable for special, indirect or consequential loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Escrow
Agent has been advised of the likelihood of such loss or damage and regardless
of the form of action.

          The
parties hereto acknowledge that the foregoing indemnities shall survive the
resignation or the removal of the Escrow Agent or the termination of this
Agreement.

          7. Fees.
The Company agrees to (a) pay the Escrow Agent the annual administration fee of
$2,500 per annum without pro-ration for partial years, upon execution of this
Agreement and from time to time thereafter reasonable compensation for the
services to be rendered hereunder, which unless otherwise agreed in writing
shall be as described in Schedule 1 attached hereto, and (b) pay or
reimburse the Escrow Agent upon request for all expenses, disbursements and
advances, including reasonable attorney’s fees and expenses, incurred or made
by it in connection with the preparation, execution, performance, delivery,
modification and termination of this Agreement.

-5-

          8. Security
Procedures. In the event funds transfer instructions are given (other than
in writing at the time of execution of this Agreement, as indicated in Schedule
2 attached hereto), whether in writing, by telecopier or otherwise, the
Escrow Agent is authorized to seek confirmation of such instructions by
telephone call-back to the person or persons designated on Schedule 3
hereto, and the Escrow Agent may rely upon the confirmation of anyone
purporting to be the person or persons so designated. The individuals
authorized to give and confirm funds transfer instructions may be changed only
in a writing actually received and acknowledged by the Escrow Agent. If the
Escrow Agent is unable to contact any of the authorized representatives
identified in Schedule 3, the Escrow Agent is hereby authorized to seek
confirmation of such instructions by telephone call-back to any one or more of
your executive officers (“Executive Officers”), as the Escrow Agent may
select. Such Executive Officer shall deliver to the Escrow Agent a fully
executed Incumbency Certificate, and the Escrow Agent may rely upon the
confirmation of anyone purporting to be any such officer. The Escrow Agent and
the beneficiary’s bank in any funds transfer may rely solely upon any account
numbers or similar identifying numbers provided by the Company or the Placement
Agents to identify (a) the beneficiary, (b) the beneficiary’s bank, or (c) an
intermediary bank. The Escrow Agent may apply any of the Escrowed Funds for any
payment order it executes using any such identifying number, even when its use
may result in a person other than the beneficiary being paid, or the transfer
of funds to a bank other than the beneficiary’s bank or an intermediary bank
designated. The parties to this Agreement acknowledge that these security
procedures are commercially reasonable. All funds transfer instructions must
include the signature of the person(s) authorizing said funds transfer, which
shall be an individual who is designated to give funds transfer instructions as
designated in Schedule 3.

          9. Notices.
Any notice or demand desired or required to be given hereunder shall be in
writing and deemed given when sent by facsimile transmission with receipt
confirmed to the telephone number below and addressed as follows:

	
 

	
 

	
 

	
 

	
 

	
a.

	
If to the Escrow Agent to:

	
 

	
 

	
 

	
 

	
JPMorgan Chase Bank, N.A.

	
 

	
 

	
 

	
Escrow Services

	
 

	
 

	
 

	
4 New York Plaza, 21st Floor

	
 

	
 

	
 

	
New York, NY 10004

	
 

	
 

	
 

	
Facsimile:
 (212) 623-6168

	
 

	
 

	
 

	
Attention: Larissa
 Urcia/Florence Hanley

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
with wire transfers to:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
JPMorgan Chase Bank, N.A

	
 

	
 

	
 

	
ABA # 021000021

	
 

	
 

	
 

	
For credit to A/C #:
 304967424

	
 

	
 

	
 

	
Delcath/Canaccord
 Registered Direct Escrow

	
 

	
 

	
 

	
Attention: Florence Hanley

-6-

	
 

	
 

	
 

	
 

	
 

	
b.

	
If to the Company, to:

	
 

	
 

	
 

	
 

	
Delcath Systems, Inc.

	
 

	
 

	
 

	
600 Fifth Avenue

	
 

	
 

	
 

	
23rd Floor

	
 

	
 

	
 

	
New York, New York 10017

	
 

	
 

	
 

	
Facsimile: (212) 489-2102

	
 

	
 

	
 

	
Attention: Chief Executive
 Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
with copies to:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Gersten Savage LLP

	
 

	
 

	
 

	
600 Lexington Avenue

	
 

	
 

	
 

	
New York, New York 10022

	
 

	
 

	
 

	
Facsimile: (212) 980-5192

	
 

	
 

	
 

	
Attention: Arthur S.
 Marcus, Esq.

	
 

	
 

	
 

	
 

	
 

	
c.

	
If to the Placement Agent,
 to::

	
 

	
 

	
 

	
 

	
Canaccord
 Adams Inc.

	
 

	
 

	
 

	
535 Madison Avenue

	
 

	
 

	
 

	
2nd Floor

	
 

	
 

	
 

	
New York, New York 10022

	
 

	
 

	
 

	
Facsimile: (212) 849-3938

	
 

	
 

	
 

	
Attention: David J.
 Strupp, Jr.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ThinkEquity Partners LLC

	
 

	
 

	
 

	
600
 Montgomery Street

	
 

	
 

	
 

	
8th Floor

	
 

	
 

	
 

	
San Francisco, California
 94111

	
 

	
 

	
 

	
Facsimile: (415) 249-0975

	
 

	
 

	
 

	
Attention: Ted Mitchell

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
with copies to:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Stroock & Stroock
 & Lavan LLP

	
 

	
 

	
 

	
180 Maiden Lane

	
 

	
 

	
 

	
New York, New York 10038

	
 

	
 

	
 

	
Facsimile:
 (212) 806-6006

	
 

	
 

	
 

	
Attention: Christopher J.
 Doyle, Esq.

or to such other address or
account information as hereafter shall be designated in writing by the
applicable party to the other parties hereto. Notwithstanding the above, in the
case of communications delivered to the Escrow Agent pursuant to this section,
such communications

-7-

shall be deemed to
have been given on the date received by the Escrow Agent. In the event that the
Escrow Agent, in its sole discretion, shall determine that an emergency exists,
the Escrow Agent may use such other means of communication as the Escrow Agent
deems appropriate. For the purposes of this section, “Business Day” shall mean
any day other than a Saturday, Sunday or any other day on which the Escrow
Agent located at the notice address set forth in this section is authorized or
required by law or executive order to remain closed.

          10.
Entire Agreement. This Agreement and any exhibits and schedules hereto
constitute the entire agreement between the parties hereto pertaining to the
subject matters hereof, and supersede all negotiations, preliminary agreements
and all prior and contemporaneous discussions and understandings of the parties
in connection with the subject matters hereof. Any exhibits and schedules
hereto are hereby incorporated into and made a part of this Agreement.

          11.
Amendments. No amendment, waiver, change or modification of any of the
terms, provisions or conditions of this Agreement shall be effective unless
made in writing and signed by all of the parties hereto or by their duly
authorized agents. Waiver of any provision of this Agreement shall not be deemed
a waiver of future compliance therewith and such provision shall remain in full
force and effect.

          12.
Severability. In the event any provision of this Agreement is held
invalid, illegal or unenforceable, in whole or in part, the remaining provisions
of this Agreement shall not be affected thereby and shall continue to be valid
and enforceable.

          13.
Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the State of New York without regard to any
applicable principles of conflicts of law.

          14.
Submission to Jurisdiction. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT
TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK
OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND,
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HERETO HEREBY ACCEPTS
FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS AND APPELLATE COURTS FROM ANY THEREOF.
EACH PARTY HERETO HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF
ANY OF THE AFOREMENTIONED COURTS IN ANY ACTION OR PROCEEDING BY THE MAILING OF
COPIES THEREOF TO SUCH PARTY BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID,
RETURN RECEIPT REQUESTED, TO SUCH PARTY, AT ITS ADDRESS SPECIFIED HEREIN. EACH
PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT
LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY
SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS.

-8-

          15.
Headings and Captions. The titles or captions of paragraphs in this
Agreement are provided for convenience of reference only, and shall not be
considered a part hereof for purposes of interpreting or applying this
Agreement, and such titles or captions do not define, limit, extend, explain or
describe the scope or extent of this Agreement or any of its terms or
conditions.

          16.
Gender and Number. Words and phrases herein shall be construed as in the
singular or plural number and as masculine, feminine or neuter gender,
according to the context.

          17.
Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument. Facsimiles may also be
deemed originals for the purpose of this Agreement.

          18.
Binding Effect on Successors and Assigns. This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective legal representatives, heirs, successors and assigns, and the
subscribers of the Securities. Nothing in this Agreement, express or implied,
is intended to confer upon any party, other than the parties hereto (and their
respective legal representatives, heirs, successors and assigns), any rights,
remedies, obligations or liabilities.

          19.
Account Opening Information. To help the government fight the funding of
terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify, and record information that identifies each
person who opens an account. When an account is opened, the Escrow Agent will
ask for information that will allow it to identify relevant parties. Upon
execution of this Agreement, each party shall provide the Escrow Agent with a
fully executed W-8 or W-9 Internal Revenue Service form, which shall include
their Tax Identification Number (TIN) as assigned by the Internal Revenue
Service.

          20.
Force Majeure. In the event that any party or the Escrow Agent is unable
to perform its obligations under the terms of this Agreement because of acts of
God, strikes, equipment or transmission failure or damage reasonably beyond its
control, or other cause reasonably beyond its control, the Escrow Agent shall
not be liable for damages to the other parties for any damages resulting from
such failure to perform otherwise from such causes. Performance under this
Agreement shall resume when the Escrow Agent is able to perform substantially.

-9-

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

	
 

	
 

	
 

	
 

	
 

	
ESCROW
 AGENT:

	
 

	
COMPANY:

	
 

	
 

	
 

	
 

	
 

	
JP Morgan
 Chase Bank

	
 

	
Delcath
 Systems, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Larissa R. Urcia

	
 

	
By:

	
/s/ Richard L. Taney

	
 

	

	
 

	
 

	

	
 

	
Name: Larissa R. Urcia

	
 

	
 

	
Name: Richard L. Taney

	
 

	
Title: Vice President

	
 

	
 

	
Title: Chief Executive
 Officer

	
 

	
 

	
 

	
 

	
 

	
PLACEMENT
 AGENTS:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Canaccord
 Adams Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Joseph Ranieri

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Name: Joseph Ranieri

	
 

	
 

	
 

	
 

	
Title: Managing Director

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ThinkEquity
 Partners LLC

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Harriet Britt

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Name: Harriet Britt

	
 

	
 

	
 

	
 

	
Title: Chief Compliance Officer

	
 

	
 

	
 

EXHIBIT A

SUMMARY OF ESCROWED FUNDS TO BE RECEIVED

	
 

	
 

	
 

	
 

	
 

	
Name and

Address of

Purchaser 

	
Number of

Shares 

	
Number of

Warrants 

	
Subscription

Amount 

	
Receipt

Confirmed by

Escrow Agent 

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

A-1

EXHIBIT B

FORM OF OFFERING TERMINATION NOTICE

______________, 2007

JPMorgan Chase Bank, N.A.

Escrow Services

4 New York Plaza, 21st Floor

New York, NY 10004

Attention: Florence Hanley/Larissa Urcia

Dear _______________ :

          Pursuant
to Section 4(a) of the Escrow Agreement dated as of September 18, 2007 (the “Escrow
Agreement”) by and among Canaccord Adams Inc., ThinkEquity Partners LLC,
Delcath Systems, Inc. (the “Company”) and you, the Company hereby
notifies you of the termination of the offering of the Securities (as that term
is defined in the Escrow Agreement) and directs you to make payments to the
Purchasers as provided for in Section 4(a) of the Escrow Agreement.

	
 

	
 

	
 

	
 

	
Very truly yours,

	
 

	
 

	
 

	
 

	
DELCATH SYSTEMS, INC.

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

B-1

EXHIBIT C

FORM OF CLOSING NOTICE

____________ ,
2007

JPMorgan Chase
Bank, N.A.

Escrow Services

4 New York Plaza, 21st
Floor

New York, NY 10004

Attention: Florence Hanley/Larissa Urcia

Dear ____________ :

          Pursuant
to Section 4(b) of the Escrow Agreement dated as of September 18, 2007 (the “Escrow
Agreement”), by and among Canaccord Adams Inc. (“Canaccord”),
ThinkEquity Partners LLC (“ThinkEquity” and together with Canaccord, the
“Placement Agents”), Delcath Systems, Inc. (the “Company”) and
you, the Company hereby certifies that it has received subscriptions for the
Securities (as that term is defined in the Escrow Agreement) and the Company
will sell and deliver Securities to the Purchasers thereof at a closing to be
held on September 21, 2007 (the “Closing Date”). The names of the
Purchasers concerned, the number of Securities subscribed for by each of such
Purchasers and the related subscription amounts are set forth on Schedule A
annexed hereto.

          Please
accept these instructions as standing instructions for the closing to be held
on the Closing Date. The parties hereto certify that their instructions may be
transmitted to you via facsimile.

          We
hereby request that the aggregate subscription amount be paid as follows:

          1.
To the Company, $ ____________ , pursuant to the following wire transfer
instructions:

           2.
To Canaccord Adams
Inc., $ ____________ , pursuant to the following wire transfer instructions:

C-1

           3.
To ThinkEquity
Partners LLC, $ ____________ , pursuant to the following wire transfer
instructions:

          4.
To Stroock & Stroock & Lavan LLP, $ ____________ ,
pursuant to the following wire transfer instructions:

          5.
To JPMorgan Chase Bank, N.A. as Escrow Agent, $ ____________ , pursuant to the
following wire transfer instructions:

          These
instructions may be executed in any number of counterparts, each of which shall
be deemed to be an original, and all of which together shall constitute one and
the same instrument.

[Signatures on following page]

C-2

	
 

	
 

	
 

	
 

	
DELCATH SYSTEMS, INC.

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
CANACCORD ADAMS INC.

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
THINKEQUITY PARTNERS LLC

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

C-3

SCHEDULE A

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name
of Purchaser 

	
 

	
Number
of Shares 

	
 

	
Number
of

Warrants 

	
 

	
Subscription

Amount 

	

	
 

	

	
 

	

	
 

	

EXHIBIT D

FORM OF SUBSCRIPTION TERMINATION NOTICE

____________ ,
2007

JPMorgan Chase
Bank, N.A.

Escrow Services

4 New York Plaza, 21st
Floor

New York, NY 10004

Attention: Florence Hanley/Larissa Urcia

Dear
____________ :

          Pursuant
to Section 4(c) of the Escrow Agreement dated as of September 18, 2007 (the “Escrow
Agreement”), by and among Canaccord Adams Inc., ThinkEquity Partners LLC,
Delcath Systems, Inc. (the “Company”) and you, the Company hereby
notifies you that the following subscription(s) have been rejected:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name
of

PURCHASER 

	
 

	
Number
of 

Subscribed 

SHARES 

REJECTED 

	
 

	
Number
of 

Subscribed 

WARRANTS

REJECTED 

	
 

	
Dollar
Amount
 REJECTED 

SUBSCRIPTION 

	

	
 

	

	
 

	

	

	

D-1

SCHEDULE 1

          $2,500
per annum without pro-ration for partial years.

SCHEDULE 2

Name of Company: Delcath Systems, Inc.
Wiring Instructions:

Name of Placement Agents:

Canaccord Adams Inc.

Wiring Instructions:

ThinkEquity Partners LLC

Wiring Instructions:

Name of Counsel to Placement Agents: Stroock & Stroock & Lavan
      LLP

Wire Instructions

 

SCHEDULE 3

Telephone Number(s) for Person(s)

Designated to Give and Confirm Funds Transfer Instructions

If to Company:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name 

	
 

	
Telephone Number 

	
 

	
Signature Specimen 

	
 

	
 

	
 

	
 

	
 

	
 

	
1.

	
Richard
 Taney

	
 

	
(212)
 489-2100

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
2.

	
Paul Feinstein

	
 

	
(212) 489-2100

	
 

	
 

	
 

	

	
 

	

	
 

	

If to the Lead Placement Agent:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name 

	
 

	
Telephone Number 

	
 

	
Signature Specimen 

	
 

	
 

	
 

	
 

	
 

	
 

	
1.

	
Jennifer
 Pardi

	
 

	
(617)
 788-1554

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
2.

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
3.exv10w1

 

Exhibit 10.1

SECOND

LICENSE AGREEMENT

     This SECOND LICENSE AGREEMENT (“Second Agreement”) is made and entered into as of the 21st day
of September, 2007 (“Effective Date”), by and between BioForm Medical, Inc., a Delaware
corporation, and BioForm Medical Europe B.V., a Netherlands corporation (together “BioForm”) and
Artes Medical, Inc., a Delaware corporation (“Artes”). BioForm and Artes shall be collectively
referred to herein as the “Parties.”

WITNESSETH

     WHEREAS, Artes and BioForm have previously entered into that certain Settlement and License
Agreement, dated October 31, 2005 (the “Agreement”); and

     WHEREAS, the Parties desire to enter into this separate Second Agreement as set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants and conditions herein contained and
other good and valuable consideration, the receipt and legal sufficiency of which are hereby
acknowledged, the Parties hereby agree as follows:

AGREEMENT

     Unless specifically defined in this Second Agreement, capitalized terms shall have the
meanings ascribed to such terms in the Agreement.

     1. Within ten (10) days following the date of this Second Agreement, BioForm will make an
initial payment of Two Million Dollars ($2,000,000) (“Initial Payment”) to Artes by wire transfer,
and BioForm will make a second and final payment of Three Million Five Hundred Thousand Dollars
($3,500,000) (“Final Payment”) to Artes by wire transfer upon the earlier to occur of (i) thirty
(30) days following BioForm’s completion of an initial public offering of its securities pursuant
to a registration statement filed with the Securities and Exchange Commission, or (ii) June 30,
2008.

     2. Artes hereby relinquishes and releases any rights it may have to Royalty payments under
Sections 6.1, 6.2, 6.3, 6.4 or 11.4 of the Agreement that arise from Net Sales occurring after
December 31, 2006, including the period between January 1, 2007 and the Effective Date (“Royalty
Release”), which Royalty Release shall be effective upon the Effective Date and at all times
thereafter; provided, however, that in the event that either the Initial Payment or Final
Payment is not paid when due, the Royalty Release shall be ineffective until such time as such
past-due Payment is made in full whereupon the Royalty Release shall be effective retroactive to
the Effective Date.

     3. Artes hereby confirms that the license grants to BioForm in Sections 3.1.1.1 and 3.1.1.2
shall be on a paid-up rather than on a royalty-bearing basis at all times that the Royalty

1

 

Release is effective. Accordingly, Artes waives its rights, and releases BioForm and its
sublicensees from any performance obligations, under Sections 11.2, 11.3.1 through 11.3.4 and 11.4
of the Agreement at all times that the Royalty Release is effective. For purposes of clarity,
Artes retains its rights, and BioForm shall retain its obligations, under Sections 11.3.5 (marking
of Sublicensed Products), 11.3.6 (resolution of disputes) and 11.3.7 (validity and enforceability
of the Licensed Patents) of the Agreement.

     4. Artes hereby relinquishes and releases any rights it may have under the Agreement to
records or audits under Sections 7 and 8 (Records and Audits) of the Agreement with respect to Net
Sales occurring after December 31, 2006 at all times that the Royalty Release is effective, but it
shall retain its rights under such Sections with respect to Net Sales that occurred during calendar
year 2005 and 2006.

     5. BioForm hereby releases and relinquishes any rights to royalty reductions under Section
12.1 of the Agreement with respect to Net Sales occurring after December 31, 2006, but it shall
retain its rights under such Section with respect to Net Sales that occurred during calendar years
2005 and 2006.

     6. In the event that (i) a third party is infringing, or has infringed after the Effective
Date, a Licensed Patent in the United States by selling an implant product containing
calcium-hydroxylapatite (CaHA) particles with diameters between 15 and 200 microns, (ii) with
respect to such third party’s conduct giving rise to the afore-mentioned infringement, such third
party is not also infringing or has not infringed after the Effective Date any patent owned or
licensed (other than a Licensed Patent) by BioForm or any Affiliate of BioForm or any patent under
which BioForm has a right of enforcement (“BioForm Patent Rights”), (iii) BioForm provides notice
to Artes in accordance with the notice provisions of the Agreement that BioForm then believes upon
reasonable investigation that the third party is not infringing (or has not infringed, as
applicable) any BioForm Patent Rights with respect to the conduct giving rise to the infringement
of the Licensed Patent, and (iv) Artes does not commence an infringement action to stop such
Infringement within ninety (90) days of receipt of such notice from BioForm and continue to
prosecute diligently such action thereafter, then, in addition to BioForm’s rights under Section
12.3 of the Agreement (Enforcement by BioForm), BioForm shall have the right, at its own expense
and for its own benefit, to enforce and defend the Licensed Patents against the parties responsible
for such Infringement and Artes shall provide reasonable cooperation and assistance to BioForm in
connection with any such action, including joining such action if necessary, and BioForm shall
retain any damages, including damages for harm to sales of BioForm, its Affiliates, or its
sublicensees that are obtained by BioForm in the course of its efforts to stop such Infringement.
BioForm’s right in the preceding sentence to enforce and defend a Licensed Patent against
Infringement in the United States shall be limited to infringement actions concerning conduct
occurring subsequent to the Effective Date and on or before September 5, 2011.

     7. This Second Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors and assigns.

     8. Each of Artes and BioForm represent and warrant that (i) the Second Agreement constitutes a
legal, valid and binding obligation on it, enforceable against it in accordance with

2

 

this Second Agreement’s terms, (ii) it has obtained any and all consents or approvals that are
necessary for it to enter into this Second Agreement and that it has full and complete authority to
enter into this Second Agreement; and (iii) the person signing on its behalf has the full and
complete authority to do so.

     9. Artes represents and warrants that (i) Artes has the sole and exclusive authority to waive
and release BioForm and its sublicensee’s obligations to pay any royalty under the Agreement and
(ii) it has not assigned or otherwise transferred to any third party the right to receive any of
the royalties under the Agreement.

     10. The Parties agree that the terms of this Second Agreement are not confidential and may be
freely disclosed by the parties to third parties; provided, however, that public statements (e.g.
press releases) shall be limited to the subject matter set forth in Attachment A or such other
subject matter as counsel for a party concludes is required to be disclosed pursuant to an
applicable law, court order or government rule or regulation.

     11. This Second Agreement, together with the Agreement, sets forth the entire understandings
of the parties with respect to the matters set forth herein, and shall supersede any prior
negotiations or agreements, whether written or oral, with respect thereto.

     12. This Second Agreement shall be governed by and construed in accordance with the laws of
the State of California, without regard to conflicts of law principles.

     13. The Parties agree that as of the Effective Date any provisions of the Agreement which are
not expressly waived or released herein shall remain, with respect to this Second Agreement,
unwaived and not released. Each Party agrees that notwithstanding anything to the contrary in
Section 30.3 of the Agreement, this Second Agreement shall be enforceable against such Party.

     14. This Second Agreement may be executed in more than one counterpart, each of which shall be
deemed to be an original but all of which taken together shall be deemed a single instrument. A
facsimile transmission of the signed Second Agreement will be legal and binding on the Parties.

     IN WITNESS WHEREOF, this Agreement has been executed and delivered by duly authorized
representatives of all parties hereto as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	“BioForm”:	 	 	 	“Artes”:
	 
	 	 	 	 	 	 	 	 	 	 
	BioForm Medical, Inc.	 	 	 	Artes Medical, Inc.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven L. Basta
	 	 
	 	By:
	 	/s/ Christopher J. Reinhard
	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Steven L. Basta
	 	 
	 	Name:
	 	Christopher J. Reinhard	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Chief Executive Officer
	 	 
	 	Title:
	 	Executive Chairman	 	 

3

 

Attachment A

[Public Statement]

Artes Medical, Inc. and BioForm Medical, Inc. today announced that BioForm has elected to pre-pay
all future royalty obligations to Artes by making two payments totaling $5.5 million. These
payments will replace any future royalty obligation of BioForm to Artes under the October 31, 2005
settlement and license agreement between the companies.

4

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