Document:

Exhibit 10.1

SUBSCRIPTION AGREEMENT

Acusphere, Inc.

500 Arsenal Street

Watertown,
MA 02472

Gentlemen:

The
undersigned (the “Investor”)
hereby confirms its agreement with you as follows:

1.             This Subscription Agreement (this “Agreement”) is made as of the date set
forth below between Acusphere, Inc., a Delaware corporation (the “Company”), and the Investor.

2.             The Company has authorized the sale and
issuance to certain investors of up to an aggregate of [________] units
(the “Units”), each consisting of
(i) one share (the “Share,”
collectively the “Shares”) of its
common stock, par value $.01 per share (the “Common
Stock”) and (ii) one warrant (the “Warrant,”
collectively the “Warrants”) to
purchase _____ shares of Common Stock (and the fractional amount being the “Warrant Ratio”), subject to adjustment by the Company’s Board of Directors, or a
committee thereof, for a purchase price of $[____] per Unit (the “Purchase Price”), reflecting a price of
$___ per Share and $_____ per Warrant. 
The Shares issuable upon the exercise of the Warrants are referred to
herein as the “Warrant Shares.”  The Warrant Shares, together with the Shares
and the Warrants, are referred to herein as the “Securities.”

3.             The offering and sale of the Units (the “Offering”) are being made pursuant to (1)
an effective Registration Statement on Form S-3 (including the Prospectus
contained therein (the “Base Prospectus”),
the “Registration Statement”)
filed by the Company with the Securities and Exchange Commission (the “Commission”), (2) if applicable, certain “free
writing prospectuses” (as that term is defined in Rule 405 under the Securities
Act of 1933, as amended), that have or will be filed with the Commission and
delivered to the Investor on or prior to the date hereof and (3) a Prospectus
Supplement (the “Prospectus Supplement”
and together with the Base Prospectus, the “Prospectus”)
containing certain supplemental information regarding the Securities and terms
of the Offering that will be filed with the Commission and delivered to the
Investor (or made available to the Investor by the filing by the Company of an
electronic version thereof with the Commission) along with the Company’s
counterpart to this Agreement.

4.             The Company and the Investor agree that the
Investor will purchase from the Company and the Company will issue and sell to
the Investor the Units set forth below for the aggregate purchase price set
forth below.  The Units shall be
purchased pursuant to the Terms and Conditions for Purchase of Units attached
hereto as Annex I and incorporated herein by this reference as if fully
set forth herein.  The Investor
acknowledges that the Offering is not being underwritten by the placement agent
(the “Placement Agent”) named in
the Prospectus Supplement and that there is no minimum offering amount.

5.             The manner of settlement of the Shares
included in the Units purchased by the Investor shall be determined by such
Investor as follows (check one):

 

 

[____]            A.    Delivery by electronic book-entry at The
Depository Trust Company (“DTC”),
registered in the Investor’s name and address as set forth below, and released
by American Stock Transfer & Trust Company, the Company’s transfer agent
(the “Transfer Agent”), to the
Investor at the Closing (as defined in Section 3.1 of Annex I hereto).  NO LATER
THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS AGREEMENT BY THE INVESTOR
AND THE COMPANY, THE INVESTOR SHALL:

(I)            DIRECT THE BROKER-DEALER AT
WHICH THE ACCOUNT OR ACCOUNTS TO BE CREDITED WITH THE SHARES ARE MAINTAINED TO
SET UP A DEPOSIT/WITHDRAWAL AT CUSTODIAN (“DWAC”)
INSTRUCTING THE TRANSFER AGENT TO CREDIT SUCH ACCOUNT OR ACCOUNTS WITH THE
SHARES, AND

(II)        REMIT BY WIRE TRANSFER THE
AMOUNT OF FUNDS EQUAL TO THE AGGREGATE PURCHASE PRICE FOR THE UNITS BEING
PURCHASED BY THE INVESTOR TO THE FOLLOWING ACCOUNT:

THE CITIBANK PRIVATE BANK

666 Fifth Avenue, 5th Floor

New York, NY 10103

ABA # 021-000-089

Account Name: Thelen Reid Brown Raysman & Steiner, as escrow agent
for the account of Acusphere, Inc.

Account Number: 9970183478

— OR —

[____]            B.    Delivery versus payment (“DVP”) through DTC (i.e., the Company shall
deliver Shares registered in the Investor’s name and address as set forth below
and released by the Transfer Agent to the Investor through DTC at the Closing
directly to the account(s) at Cowen and Company, LLC (“Cowen”) identified by the Investor and
simultaneously therewith payment shall be made by Cowen by wire transfer to the
Company).  NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS AGREEMENT
BY THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL:

(I)            NOTIFY COWEN OF THE ACCOUNT
OR ACCOUNTS AT COWEN TO BE CREDITED WITH THE SHARES BEING PURCHASED BY SUCH
INVESTOR, AND

(II)        CONFIRM THAT THE ACCOUNT OR
ACCOUNTS AT COWEN TO BE CREDITED WITH THE SHARES BEING PURCHASED BY THE INVESTOR
HAVE A MINIMUM BALANCE EQUAL TO THE AGGREGATE PURCHASE PRICE FOR THE UNITS
BEING PURCHASED BY THE INVESTOR.

IT IS THE
INVESTOR’S RESPONSIBILITY TO (A) MAKE THE NECESSARY WIRE TRANSFER OR CONFIRM
THE PROPER ACCOUNT BALANCE IN A TIMELY MANNER AND (B) ARRANGE FOR SETTLEMENT BY
WAY OF DWAC OR DVP IN A TIMELY 

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MANNER.  IF THE INVESTOR DOES NOT DELIVER THE
AGGREGATE PURCHASE PRICE FOR THE UNITS OR DOES NOT MAKE PROPER ARRANGEMENTS FOR
SETTLEMENT IN A TIMELY MANNER, THE SHARES AND WARRANTS MAY NOT BE DELIVERED AT
CLOSING TO THE INVESTOR OR THE INVESTOR MAY BE EXCLUDED FROM THE CLOSING
ALTOGETHER.

6.             The
executed Warrant shall be delivered in accordance with the terms thereof.

7.             The
Investor represents that, except as set forth below, (a) it has had no position,
office or other material relationship within the past three years with the
Company or persons known to it to be affiliates of the Company, (b) it is not a
NASD member or an Associated Person (as such term is defined under the NASD
Membership and Registration Rules Section 1011) as of the Closing, and (c)
neither the Investor nor any group of Investors (as identified in a public
filing made with the Commission) of which the Investor is a part in connection
with the Offering of the Units, acquired, or obtained the right to acquire, 20%
or more of the Common Stock (or securities convertible into or exercisable for
Common Stock) or the voting power of the Company on a post-transaction
basis.  Exceptions:

(If no exceptions, write “none.” If left blank, response will be deemed
to be “none.”)

8.             The Investor
represents that it has received (or otherwise had made available to it by the
filing by the Company of an electronic version thereof with the Commission) the
final Base Prospectus, dated ________ __, 2006, which is a part of the Company’s
Registration Statement, the documents incorporated by reference therein, and
any free writing prospectus (collectively, the “Disclosure Package”), prior to or in connection with the
receipt of this Agreement and the Prospectus Supplement (or the filing by the
Company of an electronic version thereof with the Commission) along with the
Company’s counterpart to this Agreement.

9.             No offer by the
Investor to buy Units
will be accepted and no part of the Purchase Price will be delivered to the
Company until the Company has accepted such offer by countersigning a copy of
this Agreement, and any such offer may be withdrawn or revoked by the Investor,
without obligation or commitment of any kind, at any time prior to the Company (or
the Placement Agent on behalf of the Company) sending (orally, in writing, or
by electronic mail) notice of its acceptance of such offer.  An indication of interest will involve no
obligation or commitment of any kind until this Agreement is accepted and
countersigned by or on behalf of the Company.

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Number
of Units:                                                                                                  

Purchase Price Per Unit: $                                                                                   

Aggregate Purchase Price: $                                                                              

Please confirm that the foregoing correctly sets forth the agreement
between us by signing in the space provided below for that purpose.

Dated as of:  December __, 2006

INVESTOR

By:                                                                                          

Print Name:                                                                            

Title:                                                                                       

Address:
                                                                               

                                                                                                

Agreed
and Accepted

this
___ day of December, 2006:

ACUSPHERE,
INC.

By:                                                                                          

Title:

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ANNEX I

TERMS AND CONDITIONS FOR PURCHASE OF UNITS

1.             Authorization
and Sale of the Units.  Subject to the terms and conditions of this
Agreement, the Company has authorized the sale of the Units, which consist of
the Shares and the Warrants.

2.             Agreement
to Sell and Purchase the Units; Placement Agent.

2.1          At the Closing, the Company will sell
to the Investor, and the Investor will purchase from the Company, upon the
terms and conditions set forth herein, the number of Units set forth on the
last page of the Agreement to which these Terms and Conditions for Purchase of
Units are attached as Annex I (the “Signature
Page”) for the aggregate purchase price therefor set forth on the
Signature Page.

2.2          The
Company proposes to enter into substantially this same form of Subscription
Agreement with certain other investors (the “Other
Investors”) and expects to complete sales of Units to them.  The Investor and the Other Investors are
hereinafter sometimes collectively referred to as the “Investors,” and this Agreement and the
Subscription Agreements executed by the Other Investors are hereinafter sometimes
collectively referred to as the “Agreements.”

2.3          Investor
acknowledges that the Company has agreed to pay Cowen and Company, LLC (“Cowen” or the “Placement Agent”) a fee (the “Placement Fee”) in respect of the sale of Units to the
Investor.

2.4          The
Company has entered into a Placement Agent Agreement, dated December __, 2006
(the “Placement Agreement”), with
the Placement Agent that contains certain representations, warranties,
covenants and agreements of the Company that may be relied upon by the
Investor, which shall be a third party beneficiary thereof.

3.             Closings
and Delivery of the Units and Funds.

3.1          Closing.  The completion of the purchase and sale of the Units (the “Closing”) shall occur at a place and time
(the “Closing Date”) to be specified
by the Company and the Placement Agent, and of which the Investors will be
notified in advance by the Placement Agent, in accordance with Rule 15c6-1
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  At the Closing, (a) the Company shall cause
the Transfer Agent to deliver to the Investor the number of Shares (and Units)
set forth on the Signature Page registered in the name of the Investor or, if
so indicated on the Investor Questionnaire attached hereto as Exhibit A,
in the name of a nominee designated by the Investor, (b) the Company shall
cause to be delivered to the Investor a Warrant to purchase a number of whole
Warrant Shares determined by multiplying the number of Shares (and Units) set
forth on the signature page by the Warrant Ratio and rounding down to the
nearest whole number and (c) the aggregate purchase price for the Units being
purchased by the Investor will be delivered by or on behalf of the Investor to
the Company.

3.2          Conditions to the Company’s Obligations.  (a) The Company’s obligation to issue and
sell the Units to the Investor shall be subject to: (i) the receipt by the
Company of the 

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purchase price for the Units being purchased hereunder as set forth on
the Signature Page and (ii) the accuracy of the representations and warranties
made by the Investor and the fulfillment of those undertakings of the Investor
to be fulfilled prior to the Closing Date.

(b)           Conditions to the Investor’s Obligations.  The Investor’s obligation to purchase the
Units will be subject to the accuracy of the representations and warranties
made by the Company and the fulfillment of those undertakings of the Company to
be fulfilled prior to the Closing Date, including without limitation, those
contained in the Placement Agreement, and to the condition that the Placement
Agent shall not have: (a) terminated the Placement Agreement pursuant to the
terms thereof or (b) determined that the conditions to the closing in the
Placement Agreement have not been satisfied. 
The Investor’s obligations are expressly not conditioned on the purchase
by any or all of the Other Investors of the Units that they have agreed to
purchase from the Company.

3.3          Delivery
of Funds.

(a)           Delivery
by Electronic Book-Entry at The Depository Trust Company.  If the Investor elects to settle the Shares
purchased by such Investor through delivery by electronic book-entry at DTC, no later than one (1) business day after the execution
of this Agreement by the Investor and the Company, the Investor
shall remit by wire transfer the amount of funds equal to the aggregate
purchase price for the Units being purchased by the Investor to the following
account designated by the Company and the Placement Agent pursuant to the terms
of that certain Escrow Agreement (the “Escrow
Agreement”) dated as of December __, 2006, by and among the Company,
the Placement Agent and Thelen Reid Brown Raysman & Steiner LLP (the “Escrow Agent”):

THE CITIBANK PRIVATE BANK

666 Fifth Avenue, 5th Floor

New York, NY 10103

ABA # 021-000-089

Account Name: Thelen Reid Brown Raysman & Steiner, as escrow agent
for the account of Acusphere, Inc.

Account Number: 9970183478

Such funds shall be held in escrow until the Closing
and delivered by the Escrow Agent on behalf of the Investors to the Company
upon the satisfaction, in the sole judgment of the Placement Agent, of the
conditions set forth in Section 3.2(b) hereof.  The Placement Agent shall have no rights in
or to any of the escrowed funds, unless the Placement Agent and the Escrow
Agent are notified in writing by the Company in connection with the Closing
that a portion of the escrowed funds shall be applied to the Placement
Fee.  The
Company and the Investor agree to indemnify and hold the Escrow Agent harmless
from and against any and all losses, costs, damages, expenses and claims
(including, without limitation, court costs and reasonable attorneys fees) (“Losses”) arising under this Section 3.3
or otherwise with respect to the funds held in escrow pursuant hereto or
arising under the Escrow Agreement, unless it is finally determined that such
Losses resulted directly from the 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
any 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.

 

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Investor shall also furnish to the Placement
Agent a completed W-9 form (or, in the case of an Investor who is not a United
States citizen or resident, a W-8 form).

Investor acknowledges that the Escrow Agent acts as
counsel to the Placement Agent, and shall have the right to continue to
represent the Placement Agent, in any action, proceeding, claim, litigation,
dispute, arbitration or negotiation in connection with the Offering, and
Investor hereby consents thereto and waives any objection to the continued representation
of the Placement Agent by the Escrow Agent in connection therewith based upon
the services of the Escrow Agent under the Escrow Agreement, without waiving
any duty or obligation the Escrow Agent may have to any other person.

(b)           Delivery
Versus Payment through The Depository Trust Company.  If the Investor elects to settle the Shares
purchased by such Investor by delivery versus payment through DTC, no later than one (1) business day after the execution
of this Agreement by the Investor and the Company, the Investor
shall confirm that the account or accounts at Cowen to be credited with the
Shares being purchased by the Investor have a minimum balance equal to the
aggregate purchase price for the Units
being purchased by the Investor.

3.4          Delivery of
Shares.

(a)           Delivery by
Electronic Book-Entry at The Depository Trust Company.  If the Investor elects to settle the Shares
purchased by such Investor through delivery by electronic book-entry at DTC, no later than one (1) business day after the execution
of this Agreement by the Investor and the Company, the Investor
shall direct the broker-dealer at which the account or accounts to be credited
with the Shares being purchased by such Investor are maintained, which
broker/dealer shall be a DTC participant, to set up a Deposit/Withdrawal at
Custodian (“DWAC”) instructing
American Stock Transfer & Trust Company, the Company’s transfer agent, to
credit such account or accounts with the Shares by means of an electronic
book-entry delivery.  Such DWAC shall indicate
the settlement date for the deposit of the Shares, which date shall be provided
to the Investor by the Placement Agent. 
Simultaneously with the delivery to the Company by the Escrow Agent of
the funds held in escrow pursuant to Section 3.3 above, the Company
shall direct its transfer agent to credit the Investor’s account or accounts
with the Shares pursuant to the information contained in the DWAC.

(b)           Delivery
Versus Payment through The Depository Trust Company.  If the Investor elects to settle the Shares
purchased by such Investor by delivery versus payment through DTC, no later than one (1) business day after the execution
of this Agreement by the Investor and the Company, the Investor
shall notify Cowen of the account or accounts at Cowen to be credited with the
Shares being purchased by such Investor. 
On the Closing Date, the Company shall deliver the Shares to the
Investor through DTC directly to the account or accounts at Cowen identified by
Investor and simultaneously therewith payment shall be made by Cowen by wire
transfer to the Company.

4.             Representations, Warranties and
Covenants of the Investor.

The Investor
represents and warrants to, and agrees with, the Company and the Placement
Agent that:

 7
 

 

 

4.1          The Investor (a) is
knowledgeable, sophisticated and experienced in making, and is qualified to
make decisions with respect to, investments in shares presenting an investment
decision like that involved in the purchase of the Units, including investments
in securities issued by the Company and investments in comparable companies,
(b) has answered all questions on the Signature Page and the Investor
Questionnaire for use in preparation of the Prospectus Supplement and the
answers thereto are true and correct as of the date hereof and will be true and
correct as of the Closing Date and (c) in connection with its decision to
purchase the number of Units set forth on the Signature Page, has received and
is relying solely upon the Disclosure Package and the documents incorporated by
reference therein.

4.2          The Investor acknowledges that (a) no
action has been or will be taken in any jurisdiction outside the United States
by the Company or the Placement Agent that would permit an offering of the
Units, or possession or distribution of offering materials in connection with
the issue of the Securities in any jurisdiction outside the United States where
action for that purpose is required, (b) if the Investor is outside the United
States, it will comply with all applicable laws and regulations in each foreign
jurisdiction in which it purchases, offers, sells or delivers Securities or has
in its possession or distributes any offering material, in all cases at its own
expense and (c) the Placement Agent is not authorized to make and has not made
any representation, disclosure or use of any information in connection with the
issue, placement, purchase and sale of the Units, except as set forth or
incorporated by reference in the Base Prospectus or the Prospectus Supplement.

4.3          The Investor acknowledges
that (a) the Investor has full
right, power, authority and capacity to enter into this Agreement and to
consummate the transactions contemplated hereby and has taken all necessary
action to authorize the execution, delivery and performance of this Agreement, and
(b) this Agreement constitutes a valid and binding obligation of the Investor
enforceable against the Investor in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ and contracting
parties’ rights generally and except as enforceability may be subject to
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and except as to the
enforceability of any rights to indemnification or contribution that may be
violative of the public policy underlying any law, rule or regulation
(including any federal or state securities law, rule or regulation).

4.4          The Investor understands that nothing
in this Agreement, the Prospectus or any other materials presented to the
Investor in connection with the purchase and sale of the Units constitutes
legal, tax or investment advice.  The
Investor has consulted such legal, tax and investment advisors as it, in its
sole discretion, has deemed necessary or appropriate in connection with its
purchase of Units.

4.5          Since
the date on which the Placement Agent first contacted such Investor about the
Offering, it has not engaged in any transactions in the securities of the
Company (including, without limitation, any Short Sales (as defined below)
involving the Company’s securities). 
Each Investor covenants that it will not engage in any transactions in
the securities of the Company (including Short Sales) prior to the time that
the transactions contemplated by this Agreement are publicly disclosed.  Each Investor agrees that it will not use any
of the Units acquired pursuant to this Agreement to cover any short position in
the Common Stock if doing so would be in violation of applicable securities
laws.  For purposes hereof, “Short Sales”
include, without limitation, all “short sales” as defined in Rule 200
promulgated under Regulation SHO under the Exchange Act, whether or 

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not
against the box, and all types of direct and indirect stock pledges, forward
sales contracts, options, puts, calls, short sales, swaps, “put equivalent
positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar
arrangements (including on a total return basis), and sales and other
transactions through non-US broker dealers or foreign regulated brokers.

5.             Survival
of Representations, Warranties and Agreements; Third Party Beneficiary.  Notwithstanding any investigation made by any party to this Agreement
or by the Placement Agent, all covenants, agreements, representations and
warranties made by the Company and the Investor herein will survive the
execution of this Agreement, the delivery to the Investor of the Units being
purchased and the payment therefor.  The
Placement Agent shall be a third party beneficiary with respect to the
representations, warranties and agreements of the Investor in Section 4
hereof.

6.             Notices.  All notices, requests, consents and other communications hereunder will
be in writing, will be mailed (a) if within the domestic United States by
first-class registered or certified airmail, or nationally recognized overnight
express courier, postage prepaid, or by facsimile or (b) if delivered from
outside the United States, by International Federal Express or facsimile, and
will be deemed given (i) if delivered by first-class registered or certified
mail domestic, three business days after so mailed, (ii) if delivered by
nationally recognized overnight carrier, one business day after so mailed,
(iii) if delivered by International Federal Express, two business days after so
mailed and (iv) if delivered by facsimile, upon electric confirmation of
receipt and will be delivered and addressed as follows:

(a)                      if to the
Company, to:

Acusphere,
Inc.

500
Arsenal Street

Watertown,
MA 02472

Attention:  John F. Thero

Facsimile:  (617) 926-3605

with copies to:

Goodwin
Procter, LLP

53
State Street

Boston,
MA 02109

Attention:
Lawrence S. Wittenberg, Esq.

Facsimile:
(617) 523-1231

(b)       if to the Investor, at its address on the Signature
Page hereto, or at such other address or addresses as may have been furnished
to the Company in writing.

7.             Changes.  This Agreement may not be modified or amended except pursuant to an
instrument in writing signed by the Company and the Investor.

8.             Headings.  The headings of the various sections of this Agreement have been
inserted for convenience of reference only and will not be deemed to be part of
this Agreement.

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9.             Severability.  In case any provision contained in this Agreement should be invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein will not in any way
be affected or impaired thereby.

10.          Governing
Law.  This Agreement will be governed by, and
construed in accordance with, the internal laws of the State of New York,
without giving effect to the principles of conflicts of law that would require
the application of the laws of any other jurisdiction.

11.          Counterparts.  This Agreement may be executed in two or more counterparts, each of
which will constitute an original, but all of which, when taken together, will
constitute but one instrument, and will become effective when one or more
counterparts have been signed by each party hereto and delivered to the other
parties.  The Company and the Investor
acknowledge and agree that the Company shall deliver its counterpart to the
Investor along with the Prospectus Supplement (or the filing by the Company of
an electronic version thereof with the Commission).

12.          Confirmation
of Sale.  The Investor acknowledges and agrees that
such Investor’s receipt of the Company’s counterpart to this Agreement,
together with the Prospectus Supplement (or the filing by the Company of an
electronic version thereof with the Commission), shall constitute written
confirmation of the Company’s sale of Units to such Investor.

13.          Press
Release.  The Company and the Investor agree that the
Company shall issue a press release disclosing the material terms of the
Offering prior to the opening of the financial markets in New York City on the
business day immediately after the date hereof.

14.          Termination.  In
the event that the Placement Agreement is terminated by the Placement Agent
pursuant to the terms thereof, this Agreement shall terminate without any
further action on the part of the parties hereto.

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EXHIBIT A

ACUSPHERE, INC.

INVESTOR QUESTIONNAIRE

Pursuant to Section 3 of Annex I to the Agreement, please
provide us with the following information:

 

	
  1.

  	
   

  	
  The exact name that your Shares and Warrants are to
  be registered in. You may use a nominee name if appropriate:

  	
   

  	
  

  
	
  2.

  	
   

  	
  The relationship
  between the Investor and the registered holder listed in response to item 1
  above:

  	
   

  	
   

  
	
  3.

  	
   

  	
  The mailing address of
  the registered holder listed in response to item 1 above:

  	
   

  	
   

  
	
  4.

  	
   

  	
  The Social Security
  Number or Tax Identification Number of the registered holder listed in the
  response to item 1 above:

  	
   

  	
   

  
	
  5.

  	
   

  	
  Name of DTC Participant
  (broker-dealer at which the account or accounts to be credited with the
  Shares are maintained):

  	
   

  	
   

  
	
  6.

  	
   

  	
  DTC Participant Number:

  	
   

  	
   

  
	
  7.

  	
   

  	
  Name of Account at DTC
  Participant being credited with the Shares:

  	
   

  	
   

  
	
  8.

  	
   

  	
  Account Number at DTC
  Participant being credited with the Shares:EXHIBIT 10.1

AMENDMENT NUMBER
ONE TO LETTER AGREEMENT OF OCTOBER 27th, 2006

November 24, 2006

Complete Tower Sources,
Inc.

715 Vatican Road

Carencro, LA  70520

Attn:  Lori H. Mitchell

Mitchell Site Acq., Inc.

119 Veterinarian Road

Lafayette, LA  70507

Attn:  Matthew B. Mitchell

Re:                               Stock
Purchase Agreement (the “CTSI Stock Purchase Agreement”), dated June 20, 2006,
by and among Ayin Holding Company Inc. (“Purchaser”), Complete Tower Sources,
Inc. (“CTSI”) and Lori H. Mitchell, sole shareholder of CTSI, as amended by
that certain letter agreement, dated June 20, 2006, by and among Purchaser,
Sellers (as such term is defined below), CTSI and Mitchell Site Acq., Inc. (“MSAI”)
(the “First Letter Agreement”) and that certain closing letter agreement, dated
August 15, 2006, by and among Purchaser, Sellers, CTSI, and MSAI (the “Closing
Letter Agreement”);

Stock Purchase Agreement
(the “MSAI Stock Purchase Agreement”), dated June 20, 2006, by and among
Purchaser, MSAI and Matthew B. Mitchell, sole shareholder of MSAI, as amended
by the First Letter Agreement and the Closing Letter Agreement;

Stock Purchase Agreement
Promissory Note, dated August 15, 2006, between Purchaser and Lori H. Mitchell
in the amount of $28,400,000 (the “CTSI Earnout Note”);

Stock Purchase Agreement
Promissory Note, dated August 15, 2006, between Purchaser and Matthew B.
Mitchell in the amount of $5,400,000 (the “MSAI Stock Purchase Agreement Note”),
the Goodwill Purchase Agreement between Purchaser and Matthew B. Mitchell,
dated August 15, 2006 (the “Goodwill Purchase Agreement”), and the Goodwill
Purchase Agreement Promissory Note, dated August 15, 2006, between Purchaser
and Matthew B. Mitchell in the amount of $5,400,000 (the “MSAI Goodwill Note”
and, together with the MSAI Stock Purchase Agreement Note, the “MSAI Earnout
Notes”);

Closing Promissory Note,
dated August 15, 2006, by and among Charys Holding Company, Inc. (“Parent”),
Purchaser and Lori H. Mitchell in the amount of $23,755,852 (the “CTSI Closing
Note”);

Closing Promissory Note,
dated August 15, 2006, by and among Parent, Purchaser and Matthew B. Mitchell
in the amount of $13,412,500 (the “MSAI Closing Note”); and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Letter Agreement dated
October 27th,
2006, by and among Purchaser, Parent, CTSI, MSAI and Sellers (the “October 27th Letter Amendment”).

The foregoing agreements
are herein referred to collectively as the “Purchase Agreements”.

Lori H. Mitchell and
Matthew B. Mitchell are herein referred to collectively as the “Sellers”.

The Escrow Agreement,
dated November 11, 2006, between Purchaser, CTSI and Parent and Whitney
National Bank, and the Escrow Agreement, dated November 11, 2006, between
Purchaser, MSAI and Parent and Whitney National Bank, each pertaining to the
foregoing, are herein referred to collectively as the “Escrow Agreements”.

Ladies and Gentlemen:

This letter agreement
(this “Letter Agreement”) is being delivered in connection with the Purchase
Agreements and sets forth the agreement of the parties on certain matters
related to the Purchase Agreements. 
Unless specifically amended by (i) this Letter Agreement, (ii) the First
Letter Agreement, (iii) the Closing Letter Agreement, or (iv) the October 27th Letter Amendment, the Purchase Agreements and
the Escrow Agreements remain unchanged and in full force and effect.

Accordingly, Purchaser,
Parent, CTSI, MSAI and Sellers, each intending to be legally bound, agree as
follows:

a.             All references to the date “November
24th,
2006” in the October 27th Letter Amendment are deleted and replaced with
the date “November 27th, 2006”.

b.             All references to the date “November 24th, 2006” in the Escrow
Agreements are deleted and replaced with the date “November 27th, 2006”.

This Letter Agreement may
be executed in counterparts, each of which will be deemed an original, but all
of which will constitute one and the same instrument.  Additionally, this Letter Agreement may be
executed and delivered by facsimile transmission.

[SIGNATURES ON FOLLOWING
PAGE]

 

 2
 

 

 

	
  

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
  AYIN HOLDING COMPANY INC.,

  
	
   

  	
  as Purchaser

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jimmy Taylor

  
	
   

  	
   

  	
  Jimmy Taylor, President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CHARYS HOLDING COMPANY, INC.,

  
	
   

  	
  as Parent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Billy V. Ray, Jr.

  
	
   

  	
   

  	
  Billy V. Ray, Jr., Chief Executive Officer

  

 

Agreed and Accepted this
24th day of November, 2006:

	
  COMPLETE TOWER SOURCES, INC.

  	
   

  	
  CTSI SELLER:

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Lori H. Mitchell

  	
   

  	
   

  
	
  Name:

  	
  Lori H. Mitchell

  	
   

  	
  /s/ Lori H. Mitchell 

  
	
  Title:

  	
  President

  	
   

  	
  Lori H. Mitchell 

  
	
   

  	
   

  	
   

  	
   

  
	
  MITCHELL SITE ACQ., INC.

  	
   

  	
  MSAI SELLER:  

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Matthew B. Mitchell

  	
   

  	
   

  
	
  Name:

  	
  Matthew B. Mitchell

  	
   

  	
  /s/ Matthew B. Mitchell 

  
	
  Title:

  	
  President

  	
   

  	
  Matthew B. Mitchell 

  

 

Whitney National Bank, Escrow Agent under each of the
Escrow Agreements, hereby acknowledges receipt of a copy of this Letter
Agreement and hereby accepts the terms and conditions set out herein.

Dated
this 24th day of November, 2006.

	
  

  	
  WHITNEY NATIONAL BANK

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ Timothy C. Brennan

  
	
   

  	
   

  	
  Authorized Officer

  

 

 3

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