Document:

Exhibit 10.1 - Securities Purchase Agreement, June 2, 2006

    

      Final
        Copy

      

       

      Securities
        Purchase Agreement

       

      Symbollon
        Pharmaceuticals, Inc.

      37
        Loring
        Drive 

      Framingham,
        MA 01702 

      

      The
        undersigned (the “Investors”)
        hereby
        confirms their agreement with you as follows:

       

      1.  This
        Securities Purchase Agreement is made as of the date set forth below between
        Symbollon Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
        and
        the investors identified on the signature page hereto (each, including its
        successors and assigns, an “Investor”
and
        collectively the “Investors”).

       

      2.  Pursuant
        to the Terms and Conditions for Purchase of Securities, attached hereto as
        Annex
        I
        and
        incorporated herein by reference as if fully set forth herein (the “Terms
        and Conditions”),
        the
        Company and the Investors agree that each Investor will purchase from the
        Company and the Company will issue and sell to each Investor, in a private
        placement (the “Offering”)
        250,000 shares (the “Shares”)
        of
        Class A common stock of the Company, $0.001 par value per share (the
“Common
        Stock”),
        at a
        purchase price of $1.00 per Share, and redeemable warrants (the “Warrants”)
        in the
        form of Exhibit
        A
        to the
        Terms and Conditions to purchase up to a number of shares (the “Warrant
        Shares”)
        equal
        to 100% of the Shares, which shall be exercisable on or after the Initial
        Date
        of the Warrants (as defined in the Warrants), have a term of exercise equal
        to
        five (5) years and have a strike price of $1.00 per share, for an aggregate
        purchase price of $1,000,000 (the “Purchase
        Price”);
        and

       

      Unless
        otherwise requested by the Investors as indicated in a certificate questionnaire
        substantially in the form of Exhibit
        B
        to the
        Terms and Conditions, certificates representing the Shares and Warrants
        purchased by the Investors, respectively, will be registered in the Investors’
names and addresses as set forth below. 

       

      3.  The
        Company and the Investors agree to enter into a registration rights agreement
        (the “Registration
        Rights Agreement”)
        in the
        form of Exhibit
        C
        to the
        Terms and Conditions, concurrently with the execution of this Securities
        Purchase Agreement (the Securities Purchase Agreement and the Registration
        Rights Agreement, collectively the “Agreements”).

       

      4.  The
        Investors represent that, except as set forth below, as of the date hereof
        (a)
        each has had no position, office or other material relationship within the
        past
        three years with the Company or its affiliates, (b) each does not
        beneficially own (including the right to acquire or vote) any securities
        of the
        Company, and (c) each has no direct or indirect affiliation or association
        with
        any National Association of Securities Dealers, Inc. (“NASD”)
        member. Exceptions:

       

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

       

      
        
           

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Please
        confirm that the foregoing correctly sets forth the agreement between us
        by
        signing below.

       

      Dated
        as of:
        June 2,
        2006

       

      

      Renaissance
        US Growth Investment Trust PLC

       

      

       

      By:  
        /s/ Russell Cleveland

       

      Russell
        Cleveland, President

      RENN
        Capital Group, Inc.,

      Investment
        Manager

      

       

      

       

      Address:

       

      c/o
        RENN
        Capital Group, Inc.

      8080
        N.
        Central Expressway

      Suite
        210-LB 59

      Dallas,
        TX 75206-1857

      Attention:
        Compliance

      AGREED
        AND ACCEPTED:

      

      Symbollon
        Pharmaceuticals, Inc.

       

      

       

      By:
        /s/ Paul C. Desjourdy

      Paul
        C.
        Desjourdy

      President/CEO

      

       

      

       

      

       

      

       

      [SECURITIES
        PURCHASE AGREEMENT SIGNATURE PAGE]

       

      
        
          2

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Please
        confirm that the foregoing correctly sets forth the agreement between us
        by
        signing below.

       

      Dated
        as of:
        June 2,
        2006

       

      

      BFS
        US
        Special Opportunities Trust PLC

       

      

       

      By: 
        /s/ Russell Cleveland

       

      Russell
        Cleveland, President

      RENN
        Capital Group, Inc.,

      Investment
        Adviser

      

       

      

       

      Address:

       

      c/o
        RENN
        Capital Group, Inc.

      8080
        N.
        Central Expressway

      Suite
        210-LB 59

      Dallas,
        TX 75206-1857

      Attention:
        Compliance

      AGREED
        AND ACCEPTED:

      

      Symbollon
        Pharmaceuticals, Inc.

       

      

       

      By: 
        /s/ Paul C. Desjourdy

      Paul
        C.
        Desjourdy

      President/CEO

      

       

      

       

      

       

      

       

      [SECURITIES
        PURCHASE AGREEMENT SIGNATURE PAGE]

       

      
        
          2

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Please
        confirm that the foregoing correctly sets forth the agreement between us
        by
        signing below.

       

      Dated
        as of:
        June 2,
        2006

       

      

      Renaissance
        Capital Growth & Income Fund III, Inc.

       

      

       

      By:
        /s/ Russell Cleveland

       

      Russell
        Cleveland, President

       

      

       

      

       

      Address:

       

      c/o
        RENN
        Capital Group, Inc.

      8080
        N.
        Central Expressway

      Suite
        210-LB 59

      Dallas,
        TX 75206-1857

      Attention:
        Compliance

      AGREED
        AND ACCEPTED:

      

      Symbollon
        Pharmaceuticals, Inc.

       

      

       

      By:
        /s/ Paul C. Desjourdy

          Paul
        C.
        Desjourdy

      President/CEO

      

       

      

       

      

       

      

       

      [SECURITIES
        PURCHASE AGREEMENT SIGNATURE PAGE]

       

      
        
          2

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Please
        confirm that the foregoing correctly sets forth the agreement between us
        by
        signing below.

       

      Dated
        as of:
        June 2,
        2006

       

      

      Premier
        RENN US Emerging Growth Fund Ltd.

       

      

       

      By:
        /s/ Russell Cleveland

       

      Russell
        Cleveland, President

      RENN
        Capital Group, Inc.,

      Investment
        Adviser

      

       

      

       

      Address:

       

      c/o
        RENN
        Capital Group, Inc.

      8080
        N.
        Central Expressway

      Suite
        210-LB 59

      Dallas,
        TX 75206-1857

      Attention:
        Compliance

      AGREED
        AND ACCEPTED:

      

      Symbollon
        Pharmaceuticals, Inc.

       

      

       

      By:
        /s/ Paul C. Desjourdy

      Paul
        C.
        Desjourdy

      President/CEO

      

       

      

       

      

       

      

       

      [SECURITIES
        PURCHASE AGREEMENT SIGNATURE PAGE]

       

      

       

      
        
          2

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Annex
        I

       

      Terms
        and Conditions for Purchase of Securities

       

      1.  Agreement
        to Sell and Purchase the Securities. Purchase and Sale.
        At the
        Closing (as defined in Section 2), the Company will sell to the Investors,
        and
        the Investors will purchase from the Company, upon the terms and subject
        to the
        conditions set forth herein, and at the Purchase Price, the number of Shares
        and
        Warrants described in paragraph 2 of the Securities Purchase Agreement attached
        hereto (collectively with this Annex I and the other exhibits attached hereto,
        this “Agreement”).
        

       

      2.  Initial
        Closing. 

       

      2.1  The
        completion of the purchase and sale of the Shares and Warrants (the
“Closing”)
        shall
        occur on a date mutually agreed by the Investors and the Company (the“Closing
        Date”),
        which
        date shall not be later than June 9, 2006 (the “Outside
        Date”).
        At
        the Closing, the Company shall deliver to each Investor one or more certificates
        representing the number of Shares and Warrants purchased by such Investor,
        respectively, set forth in paragraph 2 of the Securities Purchase Agreement,
        each such certificate to be registered in the name of an Investor or, if
        so
        indicated on the Certificate Questionnaire, substantially in the form attached
        hereto as Exhibit
        B,
        in the
        name of a nominee designated by such Investor. In exchange for the delivery
        of
        the certificates representing such Shares and Warrants, the Investors shall
        deliver the Purchase Price to the Company by wire transfer of immediately
        available funds pursuant to the Company’s written instructions. 

       

      2.2  The
        Company’s obligation to issue and sell the Shares and Warrants to the Investors
        shall be subject to the following conditions, any one or more of which may
        be
        waived by the Company: 

       

      (a)
        prior
        receipt by the Company of an executed copy of this Agreement; 

       

      
        
          3

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b)
        the
        accuracy in all material respects when made and on the Closing Date of the
        representations and warranties made by the Investors in this Agreement and
        the
        fulfillment of the obligations of the Investors to be fulfilled by it under
        this
        Agreement on or prior to the Closing
        in all
        material respects;
        

       

      (c)
        the
        execution and delivery by the Investors of the Registration Rights Agreement;
        

       

      (d)
        receipt of the Purchase Price; and 

       

      (e)
        the
        absence of any order, writ, injunction, judgment or decree that questions
        the
        validity of the Agreements or the right of the Company or the Investors to
        enter
        into the Agreements or to consummate
        the
        transactions contemplated hereby
        and thereby.

       

      2.3  The
        Investors’ obligation to purchase the Shares and Warrants shall be subject to
        the following conditions, any one or more of which may be waived by the
        Investors: 

       

      (a)
        the
        delivery to the Investors of a legal opinion, dated the Closing Date, from
        general counsel of the Company, substantially in the form attached hereto
        as
Exhibit
        E;
        

       

      (b)
        the
        accuracy in all material respects of the representations and warranties made
        by
        the Company in this Agreement on the date hereof and, if different, on the
        Closing Date and the fulfillment of the obligations of the Company to be
        fulfilled by it under this Agreement on or prior to the Closing in all material
        respects; 

       

      (c)
        the
        execution and delivery by the Company of the Registration Rights Agreement,
        

       

      (d)
        the
        fulfillment of the obligations of the Company to be fulfilled by it under
        this
        Agreement on or prior to the Closing; 

       

      (e)
        the
        absence of any order, writ, injunction, judgment or decree that questions
        the
        validity of the Agreements or the right of the Company or the Investors to
        enter
        into such Agreements or to consummate the transactions contemplated hereby
        and
        thereby; and 

       

      (f)
        the
        delivery to the Investors by the Secretary or Assistant Secretary of the
        Company
        of a certificate stating that the conditions specified in this paragraph
        have
        been fulfilled. 

       

      2.4  In
        the
        event that the Closing does not occur on or before the Outside Date as a
        result
        of the Company’s failure to satisfy any of the conditions set forth above (and
        such condition has not been waived by the Investor), the Company shall return
        any and all funds paid hereunder to the Investors no later than one (1) Business
        Day following the Initial Outside Date and the Investors shall have no further
        obligations hereunder. For purposes of this Agreement, “Business
        Day”
shall
        mean any day other than a Saturday, Sunday or other day on which the New
        York
        Stock Exchange or commercial banks located in Boston, Massachusetts are
        permitted or required by law to close.

       

      3. Representations,
        Warranties and Covenants of the Company.
        Except
        as otherwise described in (a) the Company’s Annual Report on Form 10-KSB for the
        year ended December 31, 2005 (and any amendments thereto filed at least two
        (2)
        Business Days prior to the date hereof with the SEC), the Company’s Quarterly
        Report on Form 10-QSB for the period ended March 31, 2006 (and any amendments
        thereto filed at least two (2) Business Days prior to the date hereof with
        the
        SEC), the Company’s Proxy Statement for its 2006 Annual Meeting of Shareholders
        (and any amendments thereto filed at least two Business Days prior to the
        date
        hereof) or any of the Company’s Current Reports on Form 8-K filed since March
        31, 2006 and at least two (2) Business Days prior to the date hereof
        (collectively, the “SEC
        Reports”)
        or (b)
        the disclosure schedules, if any, of the Company delivered concurrently herewith
        (the “Disclosure
        Schedules”),
        the
        Company hereby represents and warrants to, and covenants with, the Investors
        as
        of the date hereof and the Closing Date, as follows:

       

      3.1 Organization.
        The
        Company is duly incorporated and validly existing in good standing under
        the
        laws of the State of Delaware. The Company has full power and authority to
        own,
        operate and occupy its properties and to conduct its business as presently
        conducted and is registered or qualified to do business and in good standing
        in
        each jurisdiction in which it owns or leases property or transacts business
        and
        where the failure to be so qualified would have a material adverse effect
        upon
        the Company and its subsidiaries as a whole or the business, financial
        condition, prospects, properties, operations or assets of the Company as
        a whole
        or the Company’s ability to perform its obligations under the Agreements in all
        material respects (“Material
        Adverse Effect”),
        and
        no proceeding has been instituted in any such jurisdiction revoking, limiting
        or
        curtailing, or seeking to revoke, limit or curtail, such power and authority
        or
        qualification. The Company has no “subsidiaries” (as defined in Rule 405 under
        the Securities Act of 1933, as amended (the “Securities
        Act”)).

       

      
        
          4

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.2 Due
        Authorization. The
        Company has all requisite power and authority to execute, deliver and perform
        its obligations under the Agreements. The execution and delivery of the
        Agreements, and the consummation by the Company of the transactions contemplated
        hereby, have been duly authorized by all necessary corporate action and no
        further action on the part of the Company or the Board or shareholders is
        required. The Agreements have been validly executed and delivered by the
        Company
        and constitute legal, valid and binding agreements of the Company enforceable
        against the Company in accordance with their terms, except to the extent
        (i)
        rights to indemnity and contribution may be limited by state or federal
        securities laws or the public policy underlying such laws, (ii) such
        enforceability may be limited by applicable bankruptcy, insolvency,
        reorganization, moratorium or similar laws affecting creditors’ and contracting
        parties’ rights generally and (iii) such enforceability may be subject to
        general principles of equity (regardless of whether such enforceability is
        considered in a proceeding in equity or at law).

       

      3.3 Non-Contravention.
        The
        execution and delivery of the Agreements, the issuance and sale of the Shares
        and Warrants to be sold by the Company under the Agreements, the fulfillment
        of
        the terms of the Agreements and the consummation of the other transactions
        contemplated thereby will not (A) result in a conflict with, give rise to
        any payment or constitute a violation of, or default (with the passage of
        time
        or otherwise) under, (i) any bond, debenture, note or other evidence of
        indebtedness, or any material lease,
        contract, indenture, mortgage, deed of trust, loan agreement, joint venture
        or
        other agreement or instrument to which the Company is a party or by which
        the
        Company or its properties are bound, (ii) the Articles of Incorporation,
        by-laws or other organizational documents of the Company, as amended, or
        (iii) any law, administrative regulation, ordinance or order of any court
        or governmental agency, arbitration panel or authority binding upon the Company
        or its properties or (B) result in the creation or imposition of any lien,
        encumbrance, claim, security interest or restriction whatsoever upon any
        of the
        material properties or assets of the Company or an acceleration of indebtedness
        pursuant to any obligation, agreement or condition contained in any material
        bond, debenture, note or any other evidence of indebtedness or any material
        indenture, mortgage, deed of trust or any other agreement or instrument to
        which
        the Company is a party or by which it is bound or to which any of the property
        or assets of the Company is subject; except in the case of each of A(i),
        A(iii)
        and B, such as would not reasonably be expected to result in a Material Adverse
        Effect. No consent, approval, authorization or other order of, or registration,
        qualification or filing with, any regulatory body, administrative agency,
        or
        other governmental body is required for the execution and delivery of the
        Agreements by the Company and the valid issuance or sale of the Shares and
        Warrants by the Company pursuant to the Agreements, other than such as have
        been
        made or obtained, and except for any filings required to be made under federal
        or state securities laws and exchange listing rules and
        requirements.

       

      3.4 Capitalization.
        The
        authorized and outstanding capital stock of the Company as of the date hereof
        is
        as described in the SEC Reports, except that the number of shares of Common
        Stock outstanding as of the date hereof is 7,951,737. The Shares to be sold
        pursuant to the Agreements have been duly authorized, and when issued and
        paid
        for in accordance with the terms of the Agreements, will be duly and validly
        issued, fully paid and nonassessable, subject to no lien, claim or encumbrance
        (except
        for any such lien, claim or encumbrance created,
        directly or indirectly, by the Investors). The outstanding shares of capital
        stock of the Company have been duly and validly issued and are fully paid
        and
        nonassessable, have been issued in compliance with the registration requirements
        of federal and state securities laws, and were not issued in violation of
        any
        preemptive rights or similar rights to subscribe for or purchase securities.
        Except for the outstanding warrants and options described in the SEC Reports,
        there are no outstanding rights (including, without limitation, preemptive
        rights), warrants or options to acquire, or instruments convertible into
        or
        exchangeable for, any unissued shares of capital stock or other equity interest
        in the Company, or any contract, commitment, agreement, understanding or
        arrangement of any kind to which the Company is a party and providing for
        the
        issuance or sale of any capital stock of the Company, any such convertible
        or
        exchangeable securities or any such rights, warrants or options. Without
        limiting the foregoing, no preemptive right, co-sale right, registration
        right,
        right of first refusal or other similar right exists with respect to the
        issuance and sale of the Shares, except as provided in the Agreements. There
        are
        no shareholders agreements, voting agreements or other similar agreements
        with
        respect to the Common Stock to which the Company is a party. 

       

      
        
          5

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.5 Legal
        Proceedings. There
        is
        no material legal or governmental proceeding pending, or to the knowledge
        of the
        Company, threatened, to which the Company is a party or of which the business
        or
        property of the Company is subject that is required to be disclosed and that
        is
        not so disclosed in the SEC Reports. Neither the Company is subject to any
        injunction, judgment, decree or order of any court, regulatory body,
        administrative agency or other government body.

       

      3.6 No
        Violations. The
        Company is not in violation of its Certificate of Incorporation, bylaws or
        other
        organizational documents, as amended, or in violation of any law, administrative
        regulation, ordinance or order of any court or governmental agency, arbitration
        panel or authority applicable to the Company, which violation, individually
        or
        in the aggregate, is reasonably likely to have a Material Adverse Effect,
        and
        the Company is not in default (and there exists no condition which, with
        the
        passage of time or otherwise, would constitute a default) in the performance
        of
        any bond, debenture, note or any other evidence of indebtedness or any
        indenture, mortgage, deed of trust or any other material agreement or instrument
        to which the Company is a party or by which the Company or its properties
        are
        bound, which default is reasonably likely to have a Material Adverse
        Effect.

       

      3.7 Governmental
        Permits, Etc. The
        Company has all necessary franchises, licenses, certificates and other
        authorizations from any foreign, federal, state or local government or
        governmental agency, department or body that are currently necessary for
        the
        operation of the business of the Company as currently conducted, except where
        the failure to currently possess such franchises, licenses, certificates
        and
        other authorizations is not reasonably likely to have a Material Adverse
        Effect.

       

      3.8 Intellectual
        Property.

       

      (a)  Except
        for matters which are not reasonably likely to have a Material Adverse Effect,
        (i) the Company has ownership of, or a license or other legal right to use,
        all
        patents, copyrights, trade secrets, trademarks, Internet domain names, customer
        lists, designs, manufacturing or other processes, computer software, systems,
        data compilation, research results or other proprietary rights used in the
        business of the Company (collectively, “Intellectual
        Property”)
        and
        (ii) all of the Intellectual Property owned by the Company consisting of
        patents, registered trademarks and registered copyrights have been duly
        registered in, filed in or issued by the United States Patent and Trademark
        Office, the United States Register of Copyrights or the corresponding offices
        of
        other jurisdictions and have been maintained and renewed in accordance with
        all
        applicable provisions of law and administrative regulations in the United
        States
        and/or such other jurisdictions.

       

      (b)  Except
        for matters which are not reasonably likely to have a Material Adverse Effect
        or
        as are detailed in the SEC Reports, all material licenses or other material
        agreements under which (i) the Company employs rights in Intellectual Property,
        or (ii) the Company has granted rights to others in Intellectual Property
        owned
        or licensed by the Company are in full force and effect, there is no default
        by
        the Company with respect thereto, and the consummation of the transactions
        contemplated by the Agreements will not result in any default, change or
        acceleration of any obligations under any such licenses or
        agreements.

       

      (c)  The
        Company believes that it has taken all steps reasonably required in accordance
        with sound business practice and business judgment to establish and preserve
        the
        ownership of all material Intellectual Property owned by the
        Company.

       

      
        
          6

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d)  Except
        for matters which are not reasonably likely to have a Material Adverse Effect,
        to the knowledge of the Company, (i) the present business, activities and
        products of the Company do not infringe any intellectual property of any
        other
        person; (ii) the Company has not misappropriated or is making unauthorized
        use
        of any confidential information or trade secrets of any person; and (iii)
        the
        activities of any of the employees of the Company, acting on behalf of the
        Company, do not violate any agreements or arrangements related to confidential
        information or trade secrets of third parties.

       

      (e)  No
        proceedings are pending, or to the knowledge of the Company, threatened,
        which
        challenge the rights of the Company to the use of Intellectual Property,
        except
        for matters which are not reasonably likely to have a Material Adverse
        Effect.

       

      (f)  Except
        for matters which are not reasonably likely to have a Material Adverse Effect,
        to the knowledge of the Company, no third parties are infringing upon or
        misappropriating any Intellectual Property owned by the Company.

       

      3.9 Financial
        Statements. The
        financial statements of the Company and the related notes contained in the
        SEC
        Reports present fairly and accurately in all material respects the financial
        position of the Company as of the dates therein indicated, and the results
        of
        its operations, cash flows and the changes in shareholders’ equity for the
        periods therein specified, subject, in the case of unaudited financial
        statements for interim periods, to normal year-end audit adjustments. Such
        financial statements (including the related notes) have been prepared in
        accordance with generally accepted accounting principles applied on a consistent
        basis at the times and throughout the periods therein specified, except that
        unaudited financial statements may not contain all footnotes required by
        generally accepted accounting principles. 

       

      3.10 No
        Material Adverse Change.
        Except
        as disclosed in the SEC Reports, in
        any
        press releases issued by the Company
        at least two (2) Business Days prior to the date of this Agreement,
        or
        disclosed directly to the Investor by the Company at least two (2) Business
        Days
        prior to the date of this Agreement, since March 31, 2006, there has not
        been
        (i) an event, circumstance or change that has had or is reasonably likely
        to have a Material Adverse Effect, (ii) any obligation incurred by the Company,
        direct or contingent, that is material to the Company, (iii) any dividend
        or distribution of any kind declared, paid or made on the capital stock of
        the
        Company, or (iv) any loss or damage (whether or not insured) to the physical
        property of the Company which has had a Material Adverse Effect. 

       

      3.11 Listing
        Compliance. The
        Company’s Common Stock is registered pursuant to Section 12(g) of the Securities
        Exchange Act of 1934, as amended (the “Exchange
        Act”),
        and
        is quoted on the Over-the-Counter Bulletin Board (the “OTCBB”), and the Company
        has taken no action intended to, or which to its knowledge could have the
        effect
        of, terminating the registration of the Common Stock under the Exchange Act
        or
        the quotation of the Common Stock from the OTCBB. The issuance of the Shares
        does not require shareholder approval. 

       

      3.12 Reporting
        Status.
        The
        Company has timely made all filings required under the Exchange Act during
        the
        twelve (12) months preceding the date of this Agreement, and all of those
        documents complied in all material respects with the SEC’s requirements as of
        their respective filing dates, and the information contained therein as of
        the
        respective dates thereof did not contain an untrue statement of a material
        fact
        or omit to state a material fact required to be stated therein or necessary
        to
        make the statements therein in light of the circumstances under which they
        were
        made not misleading. The Company is currently eligible to register the resale
        of
        Common Stock by the Investors pursuant to a registration statement on Form
        SB-2
        under the Securities Act (the “Registration
        Statement”).

       

      
        
          7

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.13 No
        Manipulation; Disclosure of Information. The
        Company has not taken and will not take any action designed to or that might
        reasonably be expected to cause or result in an unlawful manipulation of
        the
        price of the Common Stock to facilitate the sale or resale of the Securities.
        

       

      3.14 Accountants.
        Vitale,
        Caturano & Company, Ltd., who expressed their opinion with respect to the
        consolidated financial statements contained in the Company’s Annual Report on
        Form 10-KSB for the year ended December 31, 2005, have advised the Company
        that
        they are, and to the knowledge of the Company they are, an independent
        registered public accounting firm as required by the Securities Act and the
        rules and regulations promulgated thereunder.

       

      3.15 Contracts.
        Except
        for matters which are not reasonably likely to have a Material Adverse Effect
        or
        as are detailed in the SEC Reports and those contracts that are substantially
        or
        fully performed or expired by their terms, the contracts listed as exhibits
        to
        or described in the SEC Reports that are material to the Company, and all
        amendments thereto, are in full force and effect on the date hereof, and
        neither
        the Company nor, to the Company’s knowledge, any other party to such contracts
        is in breach of or default under any of such contracts.

       

      3.16 Taxes.
        Except
        for matters which are not reasonably likely have a Material Adverse Effect,
        each
        of the Company has filed all necessary federal, state and foreign income
        and
        franchise tax returns and has paid or accrued all taxes shown as due thereon,
        and the Company has no knowledge of a tax deficiency which has been asserted
        or
        threatened against the Company.

       

      3.17 Transfer
        Taxes.
        On the
        Closing Date, all stock transfer or other taxes (other than income taxes)
        which
        are required to be paid in connection with the sale and transfer of the Shares
        hereunder will be, or will have been, fully paid or provided for by the Company
        and the Company will have complied with all laws imposing such
        taxes.

       

      3.18 Investment
        Company.
        The
        Company is not an “investment company” or an “affiliated person” of, or
“promoter” or “principal underwriter” for an investment company, within the
        meaning of the Investment Company Act of 1940, as amended, and will not be
        deemed an “investment company” as a result of the transactions contemplated by
        this Agreement.

       

      3.19 Insurance.
        The
        Company maintains insurance of the types and in the amounts that the Company
        reasonably believes is adequate for its businesses, including, but not limited
        to, insurance covering real and personal property owned or leased by the
        Company
        against theft, damage, destruction, acts of vandalism and all other risks
        customarily insured against by similarly situated companies, all of which
        insurance is in full force and effect.

       

      3.20 Offering
        Prohibitions.
        Neither
        the Company nor any person acting on its behalf or at its direction has in
        the
        past or will in the future take any action to sell, offer for sale or solicit
        offers to buy any securities of the Company which would bring the offer or
        sale
        of the Securities as contemplated by this Agreement within the provisions
        of
        Section 5 of the Securities Act. Assuming the accuracy of the representations
        and warranties of the Investors contained in this Agreement, the offer, sale
        and
        issuance of the Securities will be exempt from the registration requirements
        of
        the Securities Act and will have been registered or qualified (or are exempt
        from registration and qualification) under the registration, permit or
        qualification requirements of all applicable state securities laws.

       

      3.21 Related
        Party Transactions. Except
        for (i) the transactions described and contemplated by the Agreements; and
        (ii)
        as disclosed in the SEC Reports, to
        the
        knowledge of the Company, no transaction
        has occurred between or among the Company or any of its affiliates, officers
        or
        directors or any affiliate or affiliates of any such officer or director
        that is
        required to be disclosed pursuant to Section 13, 14 or 15(d) of the Exchange
        Act. 

       

      
        
          8

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.22 Books
        and Records.
        The
        books, records and accounts of the Company accurately and fairly reflect,
        in
        reasonable detail, the transactions in, and dispositions of, the assets of,
        and
        the operations of, the Company. The Company maintains a system of internal
        accounting controls sufficient to provide reasonable assurances that (i)
        transactions are executed in accordance with management’s general or specific
        authorizations, (ii) transactions are recorded as necessary to permit
        preparation of financial statements in accordance with generally accepted
        accounting principles and to maintain asset accountability, (iii) access
        to
        assets is permitted only in accordance with management’s general or specific
        authorization and (iv) the recorded accountability for assets is compared
        with
        the existing assets at reasonable intervals and appropriate action is taken
        with
        respect to any differences.

       

      3.23 Employee
        Matters.
        With
        respect to the Benefit Plans, to the knowledge of the Company, no event has
        occurred and no condition or set of circumstances exist, in connection with
        which the Company could be subject to any material liability that would have
        a
        material adverse effect on it or its business under ERISA, the United States
        Internal Revenue Code of 1986, as amended, or any other applicable law. The
        term
“Benefit
        Plan”
means
        each “employee benefit plan” (within the meaning of Section 3(3) of the
        Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
        including, without limitation, multiemployer plans within the meaning of
        Section 3(37) of ERISA), and all stock purchase, stock option, severance,
        employment, change-in-control, fringe benefit, collective bargaining, bonus,
        incentive, deferred compensation, employee loan and all other employee benefit
        plans, agreements, programs, policies or other arrangements, whether or not
        subject to ERISA, under which (i) any current or former employee, director
        or consultant of the Company has any present or future right to benefits
        and
        which are contributed to, sponsored by or maintained by the Company or any
        of
        its respective subsidiaries or (ii) the Company has had or has any present
        or future liability. The transactions contemplated by this Agreement will
        not
        result in any severance, change of control or termination pay or termination
        benefits or otherwise require the Company to make any cash payments to any
        of
        its directors, officers, employees or other affiliates. 

       

      3.24 Rights
        Plan.
        The
        Company is not party to any contract or agreement with respect to, and does
        not
        maintain any, stockholders rights plan, poison pill or similar agreement,
        plan
        or arrangement with respect to its Common Stock or any other capital stock
        of
        the Company.

      

      3.25 Finder’s
        Fees.
        The
        Company has not incurred any placement fees, commissions, brokerage or finder’s
        fees in connection with this Agreement, except for the finder’s fees due to the
        Number One Corporation.

      

      4. Representations,
        Warranties and Covenants of the Investors.

       

      4.1 Investors
        Knowledge and Status.
        Each
        Investor represents and warrants to, and covenants with, the Company that:
        

       

      (i)
        the
        Investor was at the time it was offered the Securities, is as of the date
        hereof
        and of the Closings and will be on each date it exercises any Warrants an
        “accredited investor” as defined in Regulation D under the Securities Act, is
        knowledgeable, sophisticated and experienced in making, and is qualified
        to make
        decisions with respect to, investments in securities presenting an investment
        decision similar to that involved in the purchase of the Securities, and
        has
        requested, received, reviewed and considered all information it deemed relevant
        in making an informed decision to purchase the Securities and is able to
        bear
        the economic risk of an investment in the Securities and, at the present
        time,
        is able to afford a complete loss of such investment; 

       

      
        
          9

        

        
          
          

          
            

          

        

        
          
          

        

      

      (ii)
        the
        Investor understands that the Securities are “restricted securities” and have
        not been registered under the Securities Act and is acquiring the number
        of
        Securities set forth in paragraph 2 of the Securities Purchase Agreement
        in the
        ordinary course of its business and for its own account for investment only,
        has
        no present intention of distributing any of such Securities and has no
        arrangement or understanding with any other persons regarding the distribution
        of such Securities (this representation and warranty not limiting the Investor’s
        right to sell Securities pursuant to a Registration Statement filed under
        the
        Registration Rights Agreement or otherwise, or other than with respect to
        any
        claim arising out of a breach of this representation and warranty, the
        Investor’s right to indemnification under Section 3 of the Registration Rights
        Agreement); 

       

      (iii)
        the
        Investor will not, directly or indirectly, offer, sell, pledge, transfer
        or
        otherwise dispose (each a “Disposition”)
        of (or
        solicit any offers to buy, purchase or otherwise acquire or take a pledge
        of)
        any of the Securities except in compliance with the Securities Act, applicable
        state securities laws and the respective rules and regulations promulgated
        thereunder; 

       

      (iv)
        the
        Investor has answered all questions in paragraph 4 of the Securities Purchase
        Agreement and the Investor Questionnaire attached hereto as Exhibit
        D
        for use
        in preparation of the Registration Statement and for determining the
        availability of state “Blue Sky” exemptions and the answers thereto are true and
        correct as of the date hereof and will be true and correct as of the Closing
        Date; 

       

      (v)
        the
        Investor will notify the Company promptly of any change in any of such
        information until such time as the Investor has sold all of its Securities
        or
        until the Company is no longer required to keep the Registration Statement
        effective; 

       

      (vi)
        the
        Investor acknowledges that it has reviewed the materials presented to the
        Investor in connection with the Offerings and has been afforded (A) the
        opportunity to ask such questions as it has deemed necessary of, and to receive
        answers from, representatives of the Company concerning the terms and conditions
        of the offering of the Securities and the merits and risks of investing in
        the
        Securities; (B) access to information about the Company and its respective
        financial condition, results of operations, business, properties, management
        and
        prospects sufficient to enable it to evaluate its investment; and (C) the
        opportunity to obtain such additional information that the Company possesses
        or
        can acquire without unreasonable effort or expense that is necessary to make
        an
        informed investment decision with respect to the investment; and 

       

      (vii)
        the
        Investor has, in connection with its decision to purchase the number of
        Securities set forth in paragraph 2 of the Securities Purchase Agreement,
        relied
        upon the representations and warranties of the Company contained herein and
        the
        information contained in the SEC Reports. 

       

      The
        Investor understands that the issuance of the Securities to the Investor
        has not
        been registered under the Securities Act, or registered or qualified under
        any
        state securities law, in reliance on specific exemptions therefrom, which
        exemptions may depend upon, among other things, the representations made
        by the
        Investor in this Agreement. No person is authorized by the Company to provide
        any representation that is inconsistent with or in addition to those contained
        herein or in the SEC Reports, and the Investor acknowledges that it has not
        received or relied on any such representations.

       

      4.2 Power
        and Authority.
        Each
        Investor represents and warrants to the Company that (i) the Investor is
        an
        entity duly organized, validly existing and in good standing under the laws
        of
        the jurisdiction of its organization with full right, power, authority and
        capacity to enter into the Agreements and to consummate the transactions
        contemplated thereby and has taken all necessary action to authorize the
        execution, delivery and performance of the Agreements, and (ii) the Agreements
        constitute valid and binding obligations of the Investor enforceable against
        the
        Investor in accordance with their terms, except to the extent (1) rights
        to
        indemnity and contribution may be limited by state or federal securities
        laws or
        the public policy underlying such laws, (2) such enforceability may be limited
        by applicable bankruptcy, insolvency, reorganization, moratorium or similar
        laws
        affecting creditors’ and contracting parties’ rights generally and (3) such
        enforceability may be subject to general principles of equity (regardless
        of
        whether such enforceability is considered in a proceeding in equity or at
        law).

       

      
        
          10

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.3 Short
        Position Prior to the Date Hereof.
        From the
        earlier of (i) thirty (30) days prior to the date hereof and (ii) the date
        the
        Investors learned of the Offering, neither the Investors nor any affiliate
        has
        directly or indirectly established or agreed to establish any
        hedge, “put equivalent position” (as defined in Rule 16a-1 under the Exchange
        Act) or other position
        in the Common Stock that is outstanding on the Closing Date and
        that
        is designed to or could reasonably be expected to lead to or result in a
        Disposition by the Investor
        or any
        other person or entity. For purposes hereof, a “hedge or other position”
includes, without limitation, effecting any short sale or having in effect
        any
        short position (whether or not such sale or position is against the box and
        regardless of when such position was entered into) or any purchase, sale
        or
        grant of any right (including, without limitation, any put or call option)
        with
        respect to the Common Stock or with respect to any security (other than a
        broad-based market basket or index) that includes, relates to or derives
        any
        significant part of its value from the Common Stock.
        Each
        Investor acknowledges that this representation is made for the benefit of
        the
        Company.

       

      4.4 Short
        Sales and Confidentiality After the Date Hereof. Each
        Investor covenants that neither it nor any affiliates acting on its behalf
        or
        pursuant to any understanding with it will execute any short sales during
        the
        period after the date the Investor learned of the Offering and ending at
        the
        time that the transactions contemplated by this Agreement has been publicly
        disclosed following the Company’s announcement described
        in
        Section 6.2. Each Investor covenants that until such time as the transactions
        contemplated by this Agreement are publicly disclosed by the Company as
        described in 6.2, the Investor will maintain, the confidentiality of all
        disclosures made to it in connection with the Offering (including the existence
        and terms of the Offering). Each Investor understands and acknowledges that
        the
        SEC currently takes the position that coverage of short sales of shares of
        the
        Common Stock “against the box” prior to the effective date of the Registration
        Statement with the Securities is a violation of Section 5 of the Securities
        Act,
        as set forth in Item 65, Section 5 under Section A, of the Manual of Publicly
        Available Telephone Interpretations, dated July 1997, compiled by the Office
        of
        Chief Counsel, Division of Corporation Finance. Notwithstanding the foregoing,
        each Investor does not make any representation, warranty or covenant hereby
        that
        it will not engage in short sales in the securities of the Company after
        the
        time that the transactions contemplated by this Agreement are first publicly
        disclosed as described in Section 6.2. 

       

      4.5 No
        Investment, Tax or Legal Advice.
        Each
        Investor understands that nothing in the SEC Reports, this Agreement, or
        any
        other materials presented to the Investor in connection with the purchase
        and
        sale of the Securities constitutes legal, tax or investment advice. Each
        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 Securities. 

       

      4.6 Confidential
        Information.
        Each
        Investor covenants that from the date hereof it will maintain in confidence
        all
        material non-public information regarding the Company received by the Investor
        from the Company, including the receipt and content of any Suspension Notice
        (as
        defined in the Registration Rights Agreement)) until such information (a)
        becomes generally publicly available other than through a violation of this
        provision by the Investor or its agents or (b) is required to be disclosed
        in legal proceedings (such as by deposition, interrogatory, request for
        documents, subpoena, civil investigation demand, filing with any governmental
        authority or similar process) or as otherwise required by law; provided,
        however, that before making any disclosure in reliance on this Section 4.6,
        the
        Investor will give the Company at least fifteen (15) days prior written notice
        (or such shorter period as required by law) specifying the circumstances
        giving
        rise thereto and will furnish only that portion of the non-public information
        which is legally required and will exercise its commercially reasonable efforts
        to ensure that confidential treatment will be accorded any non-public
        information so furnished. The parties acknowledge and agree that as of the
        date
        hereof and as of the Closing Date, the Company has disclosed to the Investors
        the material non-public information described in Schedule 4.6 and that such
        information is subject to this Section 4.6.

       

      
        
          11

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.7 PATRIOT
        Act.
        Each
        Investor represents and warrants to, and covenants with, the Company that:
        

       

      (i) it
        is in compliance with Executive Order 13224 and the regulations administered
        by
        the U.S. Department of the Treasury (“Treasury”)
        Office
        of Foreign Assets Control, 

       

      (ii) its
        parents, subsidiaries, affiliated companies, officers, directors and partners,
        and to the Investor’s knowledge, its shareholders, owners, employees, and
        agents, are not on the List of Specially Designated Nationals and Blocked
        Persons maintained by Treasury and have not been designated by Treasury as
        a
        financial institution of primary money laundering concern, 

       

      (iii) to
        the Investor’s knowledge after reasonable investigation, all of the funds to be
        used to acquire the Securities are derived from legitimate sources and are
        not
        the product of illegal activities, and

       

      (iv) the
        Investor is in compliance with all other applicable U.S. anti-money laundering
        laws and regulations and has implemented, if applicable, an anti-money
        laundering compliance program in accordance with the requirements of the
        Bank
        Secrecy Act, as amended by the USA PATRIOT Act, Pub. L. 107-56.

       

      5. Survival
        of Representations, Warranties and Agreements. Notwithstanding
        any investigation made by any party to this Agreement, all covenants,
        agreements, representations and warranties made by the Company and the Investors
        herein shall survive the execution of this Agreement, the delivery to the
        Investors of the Securities being purchased and the payment therefor, and
        a
        party’s reliance on such representations and warranties shall not be affected by
        any investigation made by such party or any information developed thereby.
        

       

      6. Registration
        of Securities; Public Statements. 

       

      6.1 In
        connection with the purchase and sale of the Securities by the Investors
        contemplated hereby, the Company has entered into a Registration Rights
        Agreement with the Investors providing for the filing by the Company of a
        Registration Statement on Form SB-2 to enable the resale of the Shares and
        Warrant Shares by the Investors and their transferees and assigns from time
        to
        time.

       

      6.2 The
        Company agrees to disclose on a Current Report on Form 8-K the existence
        of the
        Offering and the material terms, thereof, including pricing, within one (1)
        Business Day after the respective Closing. The Company will not issue any
        public
        statement, press release or any other public disclosure listing the Investors
        as
        one of the purchasers of the Securities without the Investors’ prior written
        consent, except as may be required by applicable law or rules of any exchange
        on
        which the Company’s securities are listed. No Investor shall issue any press
        release, or otherwise make any such public statement regarding the Offering
        without the prior written consent of the Company, except as may be required
        by
        applicable law.

       

      
        
          12

        

        
          
          

          
            

          

        

        
          
          

        

      

      7. Notices.
        All
        notices, requests, consents and other communications hereunder shall be in
        writing, shall be delivered (A) if within the United States, by first-class
        registered or certified airmail, or nationally recognized overnight express
        courier, postage prepaid, or by facsimile, or (B) if from outside the United
        States, by International Federal Express (or comparable service) or facsimile,
        and shall be deemed given: 

       

      (i)
        if
        delivered by first-class registered or certified mail domestic, upon the
        Business Day received, 

       

      (ii)
        if
        delivered by nationally recognized overnight carrier, one (1) Business Day
        after
        timely delivery to such carrier, 

       

      (iii)
        if
        delivered by International Federal Express (or comparable service), two (2)
        Business Days after timely delivery to such carrier, or

       

      (iv)
        if
        delivered by facsimile, upon electric confirmation of receipt and shall be
        addressed as follows, or to such other address or addresses as may have been
        furnished in writing by a party to another party pursuant to this paragraph:
        

       

      (a) if
        to the
        Company, to:

       

      Symbollon
        Pharmaceuticals, Inc.

      37
        Loring
        Drive

      Framingham,
        MA 01702

      Attention: President

      Telephone: (508)
        620-7676 

      

      with
        a
        copy to: 

      

      Friedman
        Kaplan Seiler & Adelman LLP

      1633
        Broadway (46th
        Floor)

      New
        York,
        NY 10019

      Attn: Norman
        Alpert, Esq.

      Telephone: (212)
        833-1113

      

      (b) if
        to the
        Investors, at their addresses on the signature page to the Securities Purchase
        Agreement.

       

      8. Amendments;
        Waiver. This
        Agreement may not be modified or amended except pursuant to an instrument
        in
        writing signed by the Company and the Investors. Any waiver of a provision
        of
        this Agreement must be in writing and executed by the party against whom
        enforcement of such waiver is sought.

       

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

       

      10. Entire
        Agreement; Severability. This
        Agreement sets forth the entire agreement and understanding of the parties
        relating to the subject matter hereof and supersedes all prior and
        contemporaneous agreements, negotiations and understandings between the parties,
        both oral and written relating to the subject matter hereof. If any provision
        contained in this Agreement is determined to be invalid, illegal or
        unenforceable in any respect, the validity, legality and enforceability of
        the
        remaining provisions contained herein shall not in any way be affected or
        impaired thereby. 

       

      
        
          13

        

        
          
          

          
            

          

        

        
          
          

        

      

      11. Governing
        Law. This
        Agreement shall be governed by, and construed in accordance with, the internal
        laws of the State of Delaware, without giving effect to the principles of
        conflicts of law. 

       

      12. Successors
        and Assigns.
        This
        Agreement shall be binding upon and inure to the benefit of the parties and
        their successors and permitted assigns. No party may assign this Agreement
        or
        any rights or obligations hereunder without the prior written consent of
        the
        other; provided, however, that each Investor may assign all or any of its
        rights
        and obligations hereunder to any affiliate of Investor that is controlled,
        directly or indirectly, by Renaissance Capital Group, Inc., and that such
        affiliate agrees in writing to be bound to the terms and conditions contained
        herein that apply to the Investor. 

       

      13. Counterparts.
        This
        Agreement may be executed in two or more counterparts, each of which shall
        constitute an original, but all of which, when taken together, shall constitute
        but one instrument, and shall become effective when one or more counterparts
        have been signed by each party hereto and delivered to the other parties.
        In the
        event that any signature is delivered by fax transmission, such signature
        shall
        create a valid and binding obligation of the party executing (or on whose
        behalf
        such signature is executed) with the same force and effect as if such fax
        signature page were an original thereof.

       

      

      *
        * *
        *

      

      

      

      
        
          
            14

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      

       

      Exhibit
        A

       

      Symbollon
        Pharmaceuticals, Inc.

       

      FORM
        OF WARRANT

       

      

       

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        B

       

      Symbollon
        Pharmaceuticals, Inc.

       

      CERTIFICATE
        QUESTIONNAIRE

       

      Pursuant
        to Section 2 of the Agreement, please provide us with the following
        information:

       

      
        	 	 
	
                1.

              	
                The
                  exact name in which your Shares and Warrants are to be registered
                  (this is
                  the name that will appear on your stock certificate(s)). You may
                  use a
                  nominee name if appropriate:

              
	 	
                Shares

              	
                Warrants

              
	 	 	 
	 	 
	 	 
	
                2.

              	
                If
                  a nominee name is listed in response to item 1 above, the relationship
                  between the Investor and such nominee:

              
	 	
                Shares

              	
                Warrants

              
	 	 
	 	 
	 	 
	
                3.

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

              
	 	
                Shares

              	
                Warrants

              
	 	 
	 	 
	 	 
	
                4.

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

              
	 	
                Shares

              	
                Warrants

              
	 	 
	 	 
	 	 

      

      

      

      

      
        
          
             

            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        C

       

      Symbollon
        Pharmaceuticals, Inc.

       

      FORM
        OF REGISTRATION RIGHTS AGREEMENT

       

      

       

      

       

      

      

       

      
        
          
          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      

       

      Exhibit
        D

       

      Symbollon
        Pharmaceuticals, Inc.

       

      INVESTOR
        QUESTIONNAIRE

       

      (All
        information will be treated confidentially)

       

      To:
        Symbollon Pharmaceuticals, Inc., 

       

      The
        undersigned hereby acknowledges the following:

       

      This
        Investor Questionnaire (“Questionnaire”)
        must
        be completed by each potential investor in connection with the offer and
        sale of
        the shares of the common stock, par value $.001 per share (the “Shares”),
        and
        common stock purchase warrants (the “Warrants”
and
        together with the Shares, the “Securities”)
        of
        Symbollon Pharmaceuticals, Inc. (the “Company”).
        The
        Securities are being offered and sold by the Company without registration
        under
        the Securities Act of 1933, as amended (the “Securities
        Act”),
        and
        the securities laws of certain states, in reliance on the exemptions contained
        in Section 4 of the Securities Act and on Regulation D promulgated thereunder
        and in reliance on similar exemptions under applicable state laws. The Company
        must determine that a potential investor meets certain suitability requirements
        before offering or selling Securities to such investor. The purpose of this
        Questionnaire is to assure the Company that the investor will meet the
        applicable suitability requirements. The information supplied by the undersigned
        will be used in determining whether the undersigned meets such criteria,
        and
        reliance upon the private offering exemption from registration is based in
        part
        on the information herein supplied.

       

      This
        Questionnaire does not constitute an offer to sell or a solicitation of an
        offer
        to buy any security. The undersigned’s answers will be kept strictly
        confidential. However, by signing this Questionnaire the undersigned will
        be
        authorizing the Company to provide a completed copy of this Questionnaire
        to
        such parties as the Company deems appropriate in order to ensure that the
        offer
        and sale of the Securities will not result in a violation of the Securities
        Act
        or the securities laws of any state and that the undersigned otherwise satisfies
        the suitability standards applicable to purchasers of the Securities. All
        potential investors must answer all applicable questions and complete, date
        and
        sign this Questionnaire. The undersigned shall print or type its responses
        and
        attach additional sheets of paper if necessary to complete its answers to
        any
        item.

       

      A. Background
        Information

       

      Name:

       

      Business
        Address:

      (Number
        and Street)

       

      (City) (State) (Zip
        Code)

       

      Telephone
        Number: ( )

       

      Residence
        Address:

      (Number
        and Street)

       

      (City) (State) (Zip
        Code)

       

      Telephone
        Number: ( )

       

      If
        an
        individual:

       

      Age:______ Citizenship:__________ Where
        registered to vote:

       

      If
        a
        corporation, partnership, limited liability company, trust or other
        entity:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Type
        of
        entity:

       

      State
        of
        formation:______________ Date
        of
        formation:

       

      Social
        Security or Taxpayer Identification No.

       

      Send
        all
        correspondence to (check one): ____ Residence Address____
        Business Address

       

      B. Status
        as Accredited Investor

       

      The
        undersigned is an “accredited investor” as such term is defined in Regulation D
        under the Securities Act, because at the time of the sale of the Securities
        the
        undersigned falls within one or more of the following categories (Please
        initial
        one or more, as applicable):

       

      _____ (1) a
        bank as
        defined in Section 3(a)(2) of the Securities Act, or a savings and loan
        association or other institution as defined in Section 3(a)(5)(A) of the
        Securities Act whether acting in its individual or fiduciary capacity; a
        broker
        or dealer registered pursuant to Section 15 of the Securities Exchange Act
        of
        1934; an insurance company as defined in Section 2(13) of the Securities
        Act; an
        investment company registered under the Investment Company Act of 1940 or
        a
        business development company as defined in Section 2(a)(48) of that act;
        a Small
        Business Investment Company licensed by the U.S. Small Business Administration
        under Section 301(c) or (d) of the Small Business Investment Act of 1958;
        a plan
        established and maintained by a state, its political subdivisions, or any
        agency
        or instrumentality of a state or its political subdivisions for the benefit
        of
        its employees, if such plan has total assets in excess of $5,000,000; an
        employee benefit plan within the meaning of the Employee Retirement Income
        Security Act of 1974 if the investment decision is made by a plan fiduciary,
        as
        defined in Section 3(21) of such act, which is either a bank, savings and
        loan
        association, insurance company, or registered investment adviser, or if the
        employee benefit plan has total assets in excess of $5,000,000 or, if a
        self-directed plan, with the investment decisions made solely by persons
        that
        are accredited investors;

      
         

        _____ (2) a
          private
          business development company as defined in Section 202(a)(22) of the Investment
          Advisers Act of 1940;

         

        _____ (3) an
          organization described in Section 501(c)(3) of the Internal Revenue Code
          of
          1986, corporation, Massachusetts or similar business trust, or partnership,
          not
          formed for the specific purpose of acquiring the Securities offered, with
          total
          assets in excess of $5,000,000;

         

        _____ (4) a
          natural
          person whose individual net worth, or joint net worth with that person’s spouse,
          at the time of such person’s purchase of the Securities exceeds
          $1,000,000;

         

        _____ (5) a
          natural
          person who had an individual income in excess of $200,000 in each of the
          two
          most recent years or joint income with that person’s spouse in excess of
          $300,000 in each of those years and has a reasonable expectation of reaching
          the
          same income level in the current year;

         

        _____ (6) a
          trust,
          with total assets in excess of $5,000,000, not formed for the specific
          purpose
          of acquiring the Securities offered, whose purchase is directed by a
          sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D;
          and

         

        _____ (7) an
          entity
          in which all of the equity owners are accredited investors (as defined
          above).

         

      

      1 
        As used in this Questionnaire, the term “net worth” means the excess of total
        assets over total liabilities. In computing net worth for the purpose of
        subsection (4), the principal residence of the investor must be valued at
        cost,
        including cost of improvements, or at recently appraised value by a professional
        appraiser. In determining income, the investor should add to the investor’s
        adjusted gross income any amounts attributable to tax exempt income received,
        losses claimed as a limited partner in any limited partnership, deductions
        claimed for depreciation, contributions to an IRA or KEOGH retirement plan,
        alimony payments, and any amount by which income from long-term capital gains
        has been reduced in arriving at adjusted gross income.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      C. Representations

       

      The
        undersigned hereby represents and warrants to the Company as
        follows:

       

      1. Any
        purchase of the Securities would be solely for the account of the undersigned
        and not for the account of any other person or with a view to any resale,
        fractionalization, division, or distribution thereof.

       

      2. The
        information contained herein is complete and accurate and may be relied upon
        by
        the Company, and the undersigned will notify the Company immediately of any
        material change in any of such information occurring prior to the closing,
        if
        any, with respect to the purchase of Securities by the undersigned or any
        co-purchaser.

       

      3. There
        are
        no suits, pending litigation, or claims against the undersigned that could
        materially affect the net worth of the undersigned as reported in this
        Questionnaire.

       

      4. The
        undersigned acknowledges that there may occasionally be times when the Company,
        based on the advice of its counsel, determines that it must suspend the use
        of
        the Prospectus forming a part of the Registration Statement (as such terms
        are
        defined in the Securities Purchase Agreement to which this Questionnaire
        is
        attached) until such time as an amendment to the Registration Statement has
        been
        filed by the Company and declared effective by the Securities and Exchange
        Commission or until the Company has amended or supplemented such Prospectus.
        The
        undersigned is aware that, in such event, the Securities will not be subject
        to
        ready liquidation, and that any Securities purchased by the undersigned would
        have to be held during such suspension. The overall commitment of the
        undersigned to investments which are not readily marketable is not excessive
        in
        view of the undersigned’s net worth and financial circumstances, and any
        purchase of the Securities will not cause such commitment to become excessive.
        The undersigned is able to bear the economic risk of an investment in the
        Securities.

       

      5. The
        undersigned has carefully considered the potential risks relating to the
        Company
        and a purchase of the Securities and fully understands that the Securities
        are
        speculative investments which involve a high degree of risk of loss of the
        undersigned’s entire investment. Among others, the undersigned has carefully
        considered each of the risks described in the Company’s Annual Report on Form
        10-KSB for the year ended December 31, 2005.

       

      6. The
        following is a list of all states and other jurisdictions in which blue sky
        or
        similar clearance will be required in connection with the undersigned’s purchase
        of the Securities: 

       

      ___________________________________________

       

      ___________________________________________

       

      ___________________________________________

       

      The
        undersigned agrees to notify the Company in writing of any additional states
        or
        other jurisdictions in which blue sky or similar clearance will be required
        in
        connection with the undersigned’s purchase of the Securities.

       

      
        
           

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the undersigned has executed this Questionnaire this _____
        day
        of __________, 2006, and declares under oath that it is truthful and
        correct.

       

      Print
        Name

       

      By:

      Signature

       

      Title:

      (required
        for any purchaser that is a corporation, partnership, trust or other
        entity)

       

      

      

        

        
          1

        

      

      
        
          
          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      Exhibit
        E

       

      FORM
        OF LEGAL OPINION

       

      June
        [·],
        2006

      

      The
        Investors in Common Stock of Symbollon Pharmaceuticals, Inc.

      

      Ladies
        and Gentlemen:

       

      I
        have
        acted as general counsel for Symbollon Pharmaceuticals, Inc., a Delaware
        corporation (the “Company”), in connection with the offer and sale by the
        Company of (i) [·]
        shares
        (“Shares”) of common stock, par value $0.001 per share (the “Common Stock”), and
        (ii) a warrant (“Warrant”) to purchase up to [·]
        additional shares (“Warrant Shares”) of Common Stock from the Company, in each
        case pursuant to the Securities Purchase Agreement by the Company and you,
        as
        Investor, dated as of June [·],
        2006
        (the “Purchase Agreement”). The Shares, the Warrant and the Warrant Shares are
        referred to herein as the “Securities.” This opinion is being delivered to you
        pursuant to Article 2 of the Purchase Agreement. Capitalized terms used herein
        and not otherwise defined herein shall have the meanings ascribed thereto
        in the
        Purchase Agreement.

      

      As
        a
        basis for the opinions hereinafter expressed, I have reviewed the following
        documents:

      

      (i) an
        executed copy of the Purchase Agreement;

      

      (ii) an
        executed copy of the Registration Rights Agreement; 

      

      
        	(iii)  	
                executed
                  copies of the Warrant (the Purchase Agreement, the Registration
                  Rights
                  Agreement and the Warrant, collectively the “Transaction Documents”); and
                  

              

      

      

      
        	(iv)  	
                such
                  other documents that I have deemed necessary and appropriate in
                  order to
                  deliver the opinions contained herein, including copies of the
                  Company's
                  Certificate of Incorporation and By-Laws certified by the Secretary
                  of the
                  State of Delaware, and the corporate secretary of the Company,
                  respectively.

              

      

      

      I
        have
        made such other investigations as I have considered necessary or appropriate
        for
        the purpose of this opinion.

       

      The
        opinions expressed herein are limited to the Delaware General Corporation
        Law
        and laws of the Commonwealth of Massachusetts and the federal laws of the
        United
        States of America.

       

      As
        to
        questions of fact material to our opinion, I have relied, without independent
        verification, on the representations and warranties contained in the Transaction
        Documents and on certificates of officers of the Company and public
        officials.

       

      Insofar
        as the opinions expressed herein are indicated to be based on my knowledge
        or on
        matters known to me, such opinion is based upon my actual knowledge, and
        is
        intended to signify that during the course of my representation, no information
        has come to my attention, which would cause me to believe that any matters
        so
        qualified are not true and correct in all material respects.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Based
        on
        the foregoing, I am of the opinion that:

       

      1. The
        Company is a corporation duly incorporated, validly existing and in good
        standing under the laws of the State of Delaware, with the corporate power
        to
        conduct its business as presently conducted. The Company has the corporate
        power
        to execute, deliver and perform the Transaction Documents including, without
        limitation, the issuance and sale of the Shares and Warrant Shares.

       

      2. Each
        of
        the Transaction Documents has been duly authorized by all requisite corporate
        action, executed and delivered by the Company. Assuming due and effective
        authorization, execution and delivery by the Investor, each of the Transaction
        Documents constitutes the valid and binding agreement of the Company enforceable
        in accordance with its terms.

       

      3. The
        Shares and Warrant Shares have been duly authorized and, upon issuance, delivery
        and payment therefor as described in the Purchase Agreement and Warrant,
        will be
        validly issued, fully paid and nonassessable.

       

      4. The
        execution, delivery and performance of the Transaction Documents and the
        issuance and sale of the Securities in accordance with the Transaction Documents
        will not: (a) violate or conflict with, or result in a breach of or default
        under, the Articles of
        Incorporation
        or
        by-laws of the Company, (b) violate or conflict with, or constitute a default
        under any material agreement or instrument (limited, with your consent, to
        agreements filed with the Securities and Exchange Commission (the “SEC”) under
        the Exchange Act and applicable rules and regulations) to which the Company
        is a
        party, or (c) violate any law of
        the
        United States or the Commonwealth of Massachusetts, any rule or regulation
        of
        any governmental authority or regulatory body of the United States or the
        Commonwealth of Massachusetts, the Delaware General Corporation Law or any
        judgment, order or decree known to me and applicable
        to the Company
        of any
        court, governmental authority or arbitrator.

       

      5. To
        my
        knowledge, no consent, approval, authorization or order of, and no notice
        to or
        filing with, any governmental agency or body or any court is required to
        be
        obtained or made by the Company for the issue and sale of the Shares pursuant
        to
        the Agreement, except such as have been obtained or made and such as may
        be
        required under the federal securities laws or the Blue Sky laws of the various
        states.

       

      6. Assuming
        the representations made by each Investor and the Company set forth in the
        Agreement and the exhibits thereto are true and correct, the offer, sale,
        issuance and delivery of the Shares and Warrant to the Investors, in the
        manner
        contemplated by the Agreement, is exempt from the registration requirements
        of
        the Securities Act.

       

      7. I
        know of
        no pending
        or overtly threatened lawsuit or claim against the Company which is required
        to
        be described in
        the
reports
        filed by the
        Company
        with
        the
SEC
        under
        the Exchange Act
        and
        applicable rules and regulations thereunder that is not so described as
        required.

       

      The
        opinions expressed herein shall be interpreted in accordance with the Legal
        Opinion Principles issued by the Committee on Legal Opinions of the American
        Bar
        Association’s Business Law Section as published in 53 Business Lawyer 831 (May
        1998).

       

      The
        opinions expressed herein are qualified to the extent that (i) the
        enforceability of any right or remedy may be subject to or affected by any
        bankruptcy, liquidation, arrangement, avoidance, reorganization, insolvency,
        fraudulent conveyance, moratorium, homestead or other similar laws relating
        to
        or affecting the rights of creditors generally, whether the issue of
        enforceability is considered in a proceeding in equity or at law; (ii) the
        remedy of injunctive relief, specific performance and any other equitable
        remedies may be unavailable in any jurisdiction or may be withheld as a matter
        of judicial discretion; (iii) public policy considerations, which, in each
        case,
        may result in the possible unenforceability of certain remedial provisions
        of
        the documents or rights to indemnification thereunder and (iv) the
        enforceability of any right or remedy may be subject to general principles
        of
        equity including, without limitation, concepts of materiality, reasonableness,
        good faith and fair dealing (regardless of whether enforceability is considered
        in a proceeding in equity or in law) and to the discretion of the court before
        which proceedings thereof may be brought.

       

      The
        opinions expressed herein are being furnished to you solely for your benefit
        in
        connection with the transactions described above and may not be circulated,
        quoted or referred to, or relied upon by any other person without our prior
        written consent. 

       

      Very
        truly yours,

      

      

      

      Paul
        C.
        Desjourdy,

      General
        CounselExhibit 10.2 - Form of Warrant

    

    THE
      WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SHARES ISSUABLE UPON EXERCISE
      HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE "ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SECURITIES NOR ANY
      INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
      TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS
      EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) THE
      COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY,
      THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED
      IN
      ANY MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
      ACT OR APPLICABLE STATE SECURITIES LAWS.

    

    SYMBOLLON
      PHARMACEUTICALS, INC.

    

    Redeemable
      Warrant for the Purchase of Shares of Class A Common
      Stock,

    par
      value $.001 per share

    

    This
      Warrant Expires on June 30, 2011

    

    No.
      ___          
      ______
      Shares

    

    This
      is
      to verify that, FOR VALUE RECEIVED, ___________, with an address at
      ______________________, telephone no. (___) ________, or its
      registered permitted
      assigns (hereinafter referred to as the "Holder")
      is
      entitled to purchase, subject to the terms and conditions hereof, from
Symbollon
      Pharmaceuticals, Inc.,
      a
      Delaware corporation (the "Company"),
      __________ (_______) shares of the Class A Common Stock of the Company, par
      value $.001 per share (the "Common
      Stock"),
      at
      any time from June 30, 2006 (the “Initial
      Date”)
      and
      ending (except as otherwise provided in paragraph 5(b) hereof) at 5:00 p.m.
      Eastern Standard Time on June 30, 2011 (the "Termination
      Date"),
      at an
      exercise price per share of $1.00, as the same may hereafter be adjusted in
      accordance with the terms hereof (as the same may be adjusted, the "Exercise
      Price").
      The
      number of shares of Common Stock purchasable upon exercise of this Warrant
      (the
      "Warrant")
      shall
      be subject to adjustment from time to time upon the occurrence of certain events
      as set forth below. The shares of Common Stock issuable or issued upon exercise
      of this Warrant, as adjusted from time to time, are sometimes referred to
      hereinafter as "Exercise
      Shares."

    

    This
      Warrant is one of the warrants (collectively, including any warrants issued
      upon
      the exercise or transfer of any such warrants in whole or in part, the
“Warrants”) issued pursuant to an offering (the “Offering”) by the Company of
      1,000,000 shares of Common Stock, pursuant to a Securities Purchase Agreement,
      dated June __, 2006. As used herein the term “this Warrant” shall mean and
      include this Warrant and any Warrant or Warrants hereafter issued as a
      consequence of the exercise or transfer of this Warrant in whole or in
      part.

    

    
      
        1

      

      
         

        
          

        

      

      
         

      

    

    1. Exercise
      of Warrant; Issuance of Exercise Shares.

    

    (a) Exercise
      of Warrants.
      This
      Warrant may be exercised in whole at any time or in part from time to time
      on or
      after the Initial Date until and including the Termination Date, upon surrender
      of this Warrant on any Business Day, as hereinafter defined, to the Company
      at
      its principal office, presently located at the address of the Company set forth
      in Section 10 hereof (or such other principal office of the Company, if any,
      as
      shall theretofore have been designated by the Company by written notice to
      the
      Holder), together with: (i) a completed and duly executed Notice of Warrant
      Exercise in the form set forth in Exhibit
      A
      hereto
      and made a part hereof (an "Exercise
      Notice");
      (ii)
      payment in full of the Exercise Price for the number of Exercise Shares set
      forth in the Exercise Notice, in lawful money of the United States of America,
      by certified check or bank cashier's check made payable to the order of the
      Company, or by wire transfer of immediately available funds to an account
      designated by the Company; and (iii) such other instruments or agreements duly
      signed by the Holder as may, in the Company's discretion, be reasonably
      necessary or advisable in order that the issuance of such Exercise Shares comply
      with applicable rules and regulations under any applicable federal or state
      securities laws or any requirement of any national securities exchange,
      association or quotation system on which Common Stock may be traded
      (collectively, "Related
      Instruments").
      For
      purposes of this Warrant, the term "Business
      Day"
      shall
      be understood to mean any day upon which commercial banks in Middlesex County,
      Massachusetts are not required or authorized by law to be closed. Upon such
      surrender of this Warrant and related Exercise Notice (and any Related
      Instruments, if required) and payment of the Exercise Price as aforesaid, the
      Company shall issue and cause to be delivered with all reasonable dispatch
      to or
      upon the written order of the Holder and in such name or names as the Holder
      may
      designate, a certificate or certificates for the number of full shares of Common
      Stock comprising the applicable number of Exercise Shares so purchased upon
      the
      exercise of this Warrant. Such certificate or certificates shall be deemed
      to
      have been issued, and any person so designated to be named therein shall be
      deemed to have become a holder of record of the Exercise Shares represented
      thereby, as of the date of surrender of this Warrant (accompanied by the related
      Exercise Notice and Related Instruments, if any) and payment in full of the
      Exercise Price, as aforesaid, notwithstanding that the certificates representing
      such Exercise Shares shall not actually have been delivered or that the transfer
      shall not have been reflected on the stock transfer books of the Company. Upon
      any partial exercise of this Warrant, the Company shall issue to the Holder
      a
      new Warrant in respect of the Exercise Shares as to which this Warrant has
      not
      been exercised. This Warrant and all rights hereunder shall expire on the
      Termination Date and shall be wholly null and void to the extent this Warrant
      is
      not exercised prior to 5:00 p.m. Eastern Standard Time on the Termination
      Date.

    

    (b) Exercise
      Shares Fully Paid and Non-Assessable.
      The
      Company agrees and covenants that all Exercise Shares issuable upon the due
      exercise of this Warrant will, upon issuance in accordance with the terms
      hereof, be duly authorized, validly issued, fully paid and non-assessable and
      free and clear of all taxes with respect to the issuance thereof (other than
      taxes which, pursuant to Section 2 hereof, the Company shall not be obligated
      to
      pay) and any liens, charges and security interests created by the
      Company.

    

    (c) Reservation
      of Exercise Shares.
      The
      Company agrees and covenants that at all times prior to the Termination Date
      it
      will have authorized, and hold in reserve, a number of authorized but unissued
      shares of Common Stock as shall from time to time be sufficient to permit the
      issuance of all Exercise Shares issuable upon the full exercise of this
      Warrant.

     

    
      
        2

      

      
         

        
          

        

      

      
         

      

    

    

    2. Payment
      of Taxes.
      The
      Company will pay all documentary stamp taxes, if any, attributable to the
      initial issuance of Exercise Shares upon the exercise of this Warrant;
provided,
      however,
      that
      the Company shall not be required to pay any tax which may be payable in respect
      of any transfer involved in the issuance of this Warrant or in respect of any
      certificates for Exercise Shares issued pursuant hereto in a name other than
      that of the Holder upon the exercise of this Warrant, and the Company shall
      not
      be required to issue or deliver such certificates unless or until the person
      or
      persons requesting the issuance thereof shall have paid to the Company the
      amount of such tax or shall have established to the satisfaction of the Company
      that such tax has been paid or is not required to be paid.

    

    3. Limited
      Rights of Holder.
      The
      Holder shall not, by virtue of anything contained in this Warrant or otherwise
      (except upon exercise of this Warrant, with respect to the Exercise Shares
      purchased thereby), be entitled to any right whatsoever, either in law or
      equity, of a stockholder of the Company, including without limitation, the
      right
      to receive dividends or to vote or to consent or to receive notice as a
      stockholder in respect of meetings of stockholders or the election of directors
      of the Company or any other matter.

    

    4. Registration
      of Transfers and Exchanges.
      This
      Warrant shall be transferable, subject to the provisions of Section 8 hereof,
      upon the books of the Company to be maintained by it for that purpose, upon
      surrender of this Warrant to the Company at its principal office accompanied
      by
      a written instrument or instruments of transfer in the form of Exhibit
      B
      hereto
      or in such other form as may be satisfactory to the Company and duly executed
      by
      the Holder or by the duly appointed legal representative thereof or by a duly
      authorized attorney and upon payment of any necessary transfer tax or other
      governmental charge imposed upon such transfer. In all cases of transfer by
      an
      attorney, the original power of attorney, duly approved, or an official copy
      thereof, duly certified, shall be deposited and remain with the Company. In
      case
      of transfer by executors, administrators, guardians or other legal
      representatives, duly authenticated evidence of their authority shall be
      produced, and may be required to be deposited and remain with the Company in
      its
      discretion. Upon any such registration of transfer, a new Warrant shall (subject
      to Section 2 hereof) be issued to the transferee named in such instrument of
      transfer, and the surrendered Warrant shall be cancelled by the
      Company.

    

    
      
        3

      

      
         

        
          

        

      

      
         

      

    

    5. Adjustment
      of Warrant.
      The
      Exercise Price and the number and kind of securities issuable upon exercise
      of
      this Warrant shall be subject to adjustment from time to time as set forth
      below:

    

    (a) Dividends,
      Subdivisions or Combinations.
      If the
      Company shall at any time (i) pay a dividend or make a distribution on the
      Common Stock in shares of its Common Stock, (ii) subdivide its outstanding
      Common Stock, or (iii) combine its outstanding Common Stock into a smaller
      number of shares, the number of shares of Common Stock which may be purchased
      upon exercise of this Warrant thereafter shall be adjusted so that the number
      of
      shares thereafter purchasable upon exercise of this Warrant shall be equal
      to
      the number of shares which the Holder would have been entitled to receive after
      the happening of such event had this Warrant been exercised immediately prior
      to
      such event. Any adjustment made pursuant to this Paragraph 5(a) shall become
      effective retroactively to the relevant record date in the case of a dividend
      and shall become effective on the relevant effective date, in the case of any
      subdivision or combination. No adjustment hereunder shall be made in respect
      of
      any cash dividends.

    

    (b) Reclassifications,
      Reorganizations and other Transactions.
      In case
      of any reclassification, capital reorganization or other change of outstanding
      Common Stock (other than a subdivision or combination of the outstanding Common
      Stock and other than a change in the par value of the Common Stock), or in
      case
      of any consolidation or merger of the Company with or into another corporation
      (other than a merger with a subsidiary of the Company in which the Company
      is
      the continuing corporation and that does not result in any reclassification,
      capital reorganization or other change of outstanding Common Stock of the class
      issuable upon exercise of this Warrant), or in case of any sale, lease, transfer
      or conveyance to another corporation of the property and assets of the Company
      as an entirety or substantially as an entirety, the Company shall, as a
      condition precedent to such transaction, cause such successor or purchasing
      corporation, as the case may be (or, if the Company is not the surviving or
      acquiring entity, shall use its reasonable efforts to negotiate to cause such
      successor or acquiring corporation), to execute with the Holder an agreement
      granting the Holder the right thereafter, upon payment of the Exercise Price
      in
      effect immediately prior to such action, to receive upon exercise of this
      Warrant the kind and amount of shares and other securities and property which
      the Holder would have owned or would have been entitled to receive after the
      happening of such reclassification, capital reorganization, change,
      consolidation, merger, sale, lease, transfer or conveyance had this Warrant
      been
      exercised immediately prior to such action. Such agreement shall provide for
      adjustments in respect of such shares of stock and other securities and property
      which shall be as nearly equivalent as may be practicable to the adjustments
      provided for in this Section. As to any consolidation or merger, or any
      conveyance or transfer of the assets and properties of the Company substantially
      as an entirety, in which the Company shall not be the surviving or acquiring
      party and in connection with which the Company, despite its reasonable efforts
      to do so, is unable to negotiate the assumption of the obligations represented
      by this Warrant by the surviving or acquiring entity, or any transaction
      pursuant to which the Company shall have disposed of substantially all of its
      assets, or any transaction constituting the voluntary or involuntary
      dissolution, liquidation or winding up of the Company, the right to exercise
      this Warrant shall expire at the close of business on the later of the dates
      specified in the notice of such transaction delivered by the Company to the
      Holder pursuant to Section 6 hereof as the date on which any such consolidation,
      merger, conveyance, transfer, dissolution, liquidation or winding up is expected
      to become effective and the date as of which it is expected that holders of
      record of shares of Common Stock shall be entitled to exchange such shares
      for
      securities or other property, if any, deliverable upon the consolidation,
      merger, conveyance, transfer, dissolution, liquidation or winding up. If this
      Warrant has not been exercised in such cases on or prior to such aforesaid
      date,
      it shall, anything herein to the contrary notwithstanding, become void and
      all
      rights under this Warrant shall cease.

    

    
      
        4

      

      
         

        
          

        

      

      
         

      

    

    (c) Corresponding
      Exercise Price Adjustments.
      After
      any adjustment of the number or kind of shares or other securities or property
      issuable upon exercise of this Warrant pursuant to the provisions of this
      Section 5, the Exercise Price shall also be adjusted so that the aggregate
      Exercise Price thereafter payable upon exercise of this Warrant shall be equal
      to the aggregate Exercise Price which would have been payable upon exercise
      of
      this Warrant immediately prior to such adjustment for the purchase of the number
      or kind of shares or other securities or other property issuable upon exercise
      of this Warrant.

    

    (d) Adjustment
      Limitations.
      No
      adjustment in the number of Exercise Shares issuable upon exercise of this
      Warrant, or of the Exercise Price, shall be required to be made unless such
      adjustment would require an increase or decrease of at least five percent (5%);
      provided,
      however,
      that
      any adjustments which by reason of this Paragraph are not required to be made
      shall be carried forward and taken into account in any subsequent adjustment.
      All calculations under this Section 5 shall be made to the nearest cent or
      one-one hundredth of a share, as the case may be, but in no event shall the
      Company be obligated to issue fractional shares upon exercise of this Warrant
      or
      to make any cash payment in lieu thereof, and any fractional shares issuable
      upon the exercise hereof shall be rounded down to the immediately prior whole
      share.

    

    (e) Form
      of Warrant After Adjustments.
      The
      form of this Warrant need not be changed because of any adjustments in the
      Exercise Price or the number or kind of the Exercise Shares, and this Warrant,
      and any warrant thereafter issued in substitution for this Warrant, may continue
      to express the same Exercise Price and number and kind of Exercise Shares as
      are
      stated in this Warrant, as initially issued.

    

    6. Rights
      of Holder.
      Without
      limiting anything contained elsewhere herein, in case at any time:

    

    (a) The
      Company shall declare any dividend upon its Common Stock payable otherwise
      than
      in Common Stock of the Company; or

    

    (b) The
      Company shall offer for subscription to all of the holders of its Common Stock
      any additional shares of stock of any class or any other securities convertible
      into shares of stock or any rights to subscribe thereto; or

    

    (c) There
      shall be any capital reorganization or reclassification of the capital stock
      of
      the Company, or a sale of all or substantially all of the assets of the Company,
      or a consolidation or merger of the Company with another corporation, other
      than
      a merger with a subsidiary in which merger the Company is the continuing
      corporation and which does not result in any reclassification or change of
      the
      then outstanding shares of Common Stock or other capital stock issuable upon
      exercise of this Warrant other than a change in par value (or from par value
      to
      no par value or from no par value to par value); or

    

    
      
        5

      

      
         

        
          

        

      

      
         

      

    

    (d) 
      There
      shall be a voluntary or involuntary dissolution, liquidation or winding up
      of
      the Company;

    

    then,
      in
      any one or more of said cases, the Company shall cause to be mailed to the
      Holder, at the earliest practicable time (and, in any event, not less than
      10
      days before any record date or other date set for definitive action), written
      notice of the date on which the books of the Company shall close or a record
      shall be taken for such dividend, subscription, reorganization,
      reclassification, consolidation, merger, dissolution, liquidation or winding
      up,
      as the case may be. Such notice shall also set forth such facts as shall
      indicate the effect of such action (to the extent such effect may be known
      at
      the date of such notice) on the Exercise Price and the kind and amount of the
      shares of stock and other securities and property deliverable upon exercise
      of
      this Warrant. Such notice shall also specify the date as of which the holders
      of
      the Common Stock of record shall participate in said dividend or subscription
      rights or shall be entitled to exchange their Common Stock for securities or
      other property deliverable upon such reorganization, reclassification,
      consolidation, merger, dissolution, liquidation or winding up, as the case
      may
      be. Notwithstanding anything in this Section 6 to the contrary, however, it
      is
      agreed that the failure of the Company to give any such notice of a corporate
      action shall not invalidate such corporate action.

    

    7. Registration
      Rights.
      Certain
      registration rights covering the Exercise Shares are set forth in the
      Registration Rights Agreement dated _________, 2006 between the Company and
      the
      Holder.

    

    8. Restrictions
      on Transferability - Restrictive Legend.
      Neither
      this Warrant nor any of the Exercise Shares (nor any interest herein or therein)
      shall be sold, assigned, pledged, encumbered, or otherwise transferred or
      disposed of except in accordance with the provisions of this
      Section:

    

    (a) Restrictions
      on Transfer; Indemnification.
      Neither
      this Warrant nor any Exercise Shares may be offered for sale or sold, or
      otherwise transferred or disposed of, in any transaction which would constitute
      a sale thereof within the meaning of the Securities Act of 1933, as amended
      (the
      "Act"),
      unless (i) such security has been registered for sale under the Act and
      registered or qualified under applicable state securities laws relating to
      the
      offer and sale of securities, or (ii) exemptions from the registration
      requirements of the Act and the registration or qualification requirements
      of
      all such state securities laws are available and the Company shall have received
      an opinion of counsel satisfactory to the Company that the proposed sale or
      other transfer or disposition of such securities may be effected without
      registration under the Act and would not result in any violation of any
      applicable state securities laws relating to the registration or qualification
      of securities for sale. The Holder agrees to indemnify and hold harmless the
      Company against any loss, damage, claim or liability (including, without
      limitation, any legal costs or expenses incurred by the Company) arising from
      the sale, transfer or other disposition of this Warrant or any Exercise Shares
      held by the Holder, or any interest therein, in violation of the provisions
      of
      this Section 8.

    

    
      
        6

      

      
         

        
          

        

      

      
         

      

    

    (b) Restrictive
      Legends.
      Unless
      and until otherwise permitted by this Section 8, this Warrant, each warrant
      issued to the Holder pursuant hereto or to any transferee or assignee of this
      Warrant, and each certificate representing Exercise Shares issued upon exercise
      of this Warrant or any warrant issued to the Holder pursuant hereto or to any
      transferee or assignee of this Warrant, or to any transferee of the person
      to
      whom any Exercise Shares are issued, shall bear a legend setting forth the
      requirements of Paragraph (a) of this Section 8, together with such other legend
      or legends as may otherwise be deemed necessary or appropriate by counsel to
      the
      Company.

    

    (c) Notice
      of Proposed Transfers.
      Prior
      to any transfer, offer to transfer or attempted transfer of this Warrant or
      any
      Exercise Shares, the holder of such security shall give written notice to the
      Company of such holder's intention to effect such transfer. Each such notice
      (i)
      shall describe the manner and circumstances of the proposed transfer in
      reasonable detail, and shall contain an undertaking by the person giving such
      notice to furnish such other information as may be required, to enable counsel
      to the Company to make the determinations referred to below, and (ii) shall
      designate the counsel for the person giving such notice, such counsel to be
      reasonably satisfactory to the Company. The person giving such notice shall
      submit a copy thereof to the counsel designated in such notice, and the
      following provisions shall apply:

    

    (i) If,
      in
      the opinion of counsel to the Company, the proposed transfer of this Warrant
      or
      Exercise Shares, as appropriate, may be effected without registration of such
      security under the Act or under any applicable state law, the Company shall,
      as
      promptly as practicable, so notify the holder of such security and such holder
      shall thereupon be entitled to transfer such security in accordance with the
      terms of the notice delivered by such holder to the Company. Each certificate
      evidencing the securities thus to be transferred (and each certificate
      evidencing any untransferred balance of the securities evidenced by such
      certificate) shall bear the restrictive legends referred to in Paragraph (b)
      of
      this Section 8, unless in the opinion of counsel to the Company such legends
      are
      not required in order to ensure compliance with the Act.

    

    (ii) If,
      in
      the opinion of counsel to the Company, the proposed transfer of securities
      may
      not be effected without registration under the Act or under any applicable
      state
      law, the Company shall, as promptly as practicable, so notify the holder
      thereof. However, except as referenced in Section 7 hereof, the Company shall
      have no obligation to register such securities under the Act.

    

    The
      holder of the securities giving the notice under this Paragraph (c) shall not
      be
      entitled to transfer any of the securities that are the subject to such notice
      until receipt of notice from the Company under subparagraph (i) of this
      Paragraph (c) or registration of such securities under the Act, and under any
      applicable state law, has become effective.

    

    
      
        7

      

      
         

        
          

        

      

      
         

      

    

    (d) Removal
      of Legend.
      The
      Company shall, at the request of any registered holder of this Warrant or any
      Exercise Share issued upon the exercise hereof, exchange the certificate
      representing such security for a certificate representing the same security
      not
      bearing the restrictive legends required by Paragraph (b) of this Section 8
      if,
      in the opinion of counsel to the Company, such restrictive legends are no longer
      necessary.

    

    9. Redemption
      of the Warrants.

    

    (a) Redemption
      Right.
      On a
      date (the “Redemption Date”) not less than fifteen (15) days from the date
      notice (the “Notice of Redemption”) is given to the Holder, this Warrant may be
      redeemed, at the option of the Company, at a redemption price of $.01 per
      Warrant (the “Redemption Price”), in the event that during a period ending
      within sixty (60) days prior to the date on which the Notice of Redemption
      is
      given, (i) the last reported sales price of the Common Stock over twenty (20)
      successive trading days is equal to or greater than $5.00 (the “Target Price”)
      and (ii) the Class A Common Stock has an average trading volume in excess of
      twenty-five thousand (25,000) shares per day over the same twenty (20)
      successive trading days period of time, subject to adjustment as set forth
      in
      Paragraph 9(e) below. The date fixed for redemption of this Warrant is referred
      to herein as the “Redemption Date”.

    

    (b) Notice
      of Redemption.
      If the
      conditions set forth in Section 9(a) are met, and the Company desires to
      exercise its right to redeem this Warrant, the Company shall mail the Notice
      of
      Redemption to the Holder, first class, postage prepaid, at his address set
      forth
      on the first page hereof (or such other address of the Holder, if any, as shall
      theretofore have been designated by the Holder by written notice to the
      Company). Any notice mailed in the manner provided herein shall be conclusively
      presumed to have been duly given on the date mailed by the Company whether
      or
      not the Holder receives such notice. The Notice of Redemption shall specify
      (i)
      the Redemption Price, (ii) the Redemption Date, (iii) the place where the
      Warrant certificate shall be delivered and the Redemption Price paid and (iv)
      that the right to exercise this Warrant shall terminate at 5:00 p.m. Eastern
      Standard Time on the Business Day immediately preceding the Redemption Date.
      An
      affidavit of the Company’s Secretary or Assistant Secretary that the Notice of
      Redemption has been mailed shall, in the absence of fraud, be prima facie
      evidence of the facts stated therein.

    

    (c) Right
      to Exercise Warrant.
      Any
      right to exercise this Warrant shall terminate at 5:00 p.m. Eastern Standard
      Time on the Business Day immediately preceding the Redemption Date. On and
      after
      the Redemption Date, the Holder shall have no further rights except to receive,
      upon surrender of this Warrant, the Redemption Price.

    

    (d) Certificate
      Surrender; Payment of Redemption Price.
      From
      and after the Redemption Price, the Company shall at the place specified in
      the
      Notice of Redemption, upon presentation and surrender to the Company by or
      on
      behalf of the Holder thereof of the Warrant certificate, deliver or cause to
      be
      delivered to or upon the written order of the Holder a sum in cash equal to
      the
      Redemption Price of this Warrant. From and after the Redemption Date and upon
      the deposit or setting aside by the Company of a sum sufficient to redeem this
      Warrant, this Warrant shall expire and become void and all rights hereunder
      and
      under the Warrant certificate, except the right to receive payment of the
      Redemption Price, shall cease.

    

    
      
        8

      

      
         

        
          

        

      

      
         

      

    

    (e) Target
      Price Adjustment.
      If the
      Exercise Price is adjusted pursuant to Section 5 hereof, then the Target Price
      shall be correspondingly adjusted so that it shall remain at the same multiply
      of the Exercise Price. 

    

    10. Notices.
      All
      notices required or permitted to be given hereunder shall be in writing and
      shall be deemed to have been (a) when received, if delivered in person; (b)
      when
      sent, if sent by electronically confirmed facsimile transmission; or (c) five
      Business (5) Days following the mailing thereof, if mailed by certified first
      class mail, postage prepaid, return receipt request, in any such case as to
      the
      following addresses or facsimile transmission numbers:

    

    If
      to the
      Company, to:

    

    Symbollon
      Pharmaceuticals, Inc.

    37
      Loring
      Drive

    Framingham,
      Massachusetts 01702

    Attention:
      Paul C. Desjourdy, President

    Telephone:
      (508) 620-7676

    Telecopier:
      (508) 620-7111

    

    If
      to the
      Holder, to the address and facsimile transmission number set forth on the first
      page hereof, or in either case to such other address as the party shall have
      furnished in accordance with the Paragraph 9(b) hereof.

    

    10. Supplements
      and Amendments.
      The
      Company may from time to time supplement or amend this Warrant without the
      approval of the Holder in order to cure any ambiguity or to correct or
      supplement any provision contained herein which may be defective or inconsistent
      with any other provision, or to make any other provisions in regard to matters
      or questions herein or arising hereunder which the Company may deem necessary
      or
      desirable and which shall not materially adversely affect the interests of
      the
      Holder hereunder. Otherwise this Warrant may be amended or any of its provisions
      waived only by a written consent or consents executed by the Company and Holders
      of a majority of the then outstanding unexercised Warrants. Any amendment or
      waiver shall be binding upon all existing and future Holders.

    

    11  Lost,
      Stolen or Mutilated Warrants.
      Upon
      receipt of evidence satisfactory to the Company of the loss, theft, destruction
      or mutilation of any Warrant (and upon surrender of any Warrant if mutilated),
      and upon reimbursement of the Company’s reasonable incidental expenses and
      indemnity reasonably satisfactory to the Company, the Company shall execute
      and
      deliver to the Holder thereof a new Warrant of like date, tenor and
      denomination.

    

    
      
        9

      

      
         

        
          

        

      

      
         

      

    

    12  Successors
      and Assigns.
      This
      Warrant shall inure to the benefit of and be binding on the respective
      successors, permitted assigns and legal representatives of the Holder and the
      Company.

    

    13  Severability.
      If for
      any reason any provision or term of this Warrant is held to be invalid or
      unenforceable, all other valid provisions herein shall remain in full force
      and
      effect and all terms and provisions of this Warrant shall be deemed to be
      severable.

    

    14  Governing
      Law.
      This
      Warrant shall be governed by and construed in accordance with the laws of The
      Commonwealth of Massachusetts without regard to its conflict of laws
      provisions.

    

    15  Headings.
      Section
      and Paragraph headings used herein are included herein for convenience of
      reference only and shall not affect the construction of this Warrant nor
      constitute a part of this Warrant for any other purpose.

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be duly executed as of the date and year
      first above written.

    

    

    SYMBOLLON
      PHARMACEUTICALS, INC.

    

    

    

    By:_____________________________________

    Paul
      C.
      Desjourdy, President

    

    
      
        
          10

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    EXHIBIT
      A

    

    NOTICE
      OF WARRANT EXERCISE

    

    Pursuant
      to a Warrant issued by Symbollon Pharmaceuticals, Inc., a Delaware corporation
      (the "Company"),
      to
      the undersigned dated as of ___________, 2006, the undersigned hereby
      irrevocably elects to exercise its warrant to the extent of purchasing
      _______________ shares of Class A Common Stock (the "Exercise
      Shares")
      of the
      Company as provided for therein.

    

    The
      undersigned hereby represents and agrees that the Exercise Shares purchased
      pursuant hereto are being purchased for investment and not with a view to the
      distribution or resale thereof, and that the undersigned understands that said
      Exercise Shares have not been registered under the Securities Act of 1933,
      as
      amended.

    

    Payment
      of the full purchase price of the Exercise Shares is enclosed herewith, in
      the
      form of a check made payable to the Company, or has been wired, in the form
      of
      immediately available funds, to an account designated by the
      Company.

    

    The
      undersigned requests that a certificate for the Exercise Shares be issued in
      the
      name of:

    ______________________________

    ______________________________

    
      	 	 	
               

            

    

    (Please
      print name, address and social security number)

    

    and,
      if
      said number of shares shall not be all the number of shares of Common Stock
      purchasable hereunder, that a new Warrant certificate for the balance of the
      number of shares of Common Stock 

    purchasable
      under the Warrant be registered in the name of the undersigned and delivered
      to
      the

    address
      set forth under the undersigned's signature below.

    

    

    Name
      of
      Warrant holder (or registered assignee):
      ________________________________

    (Please
      Print)

    

    Address:________________________________________

    ________________________________________

    ________________________________________

    

    Signature:______________________________________ Date:____________________________

    

    Note:
      The
      above signature must correspond with the name as written upon the face of the
      Warrant in every particular, without alteration or enlargement or any change
      whatever unless this Warrant has been assigned on the records of the
      Company.

    

    
      
        
          11

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    EXHIBIT
      B

    

    

    ASSIGNMENT

    

    

    (To
      be
      signed only upon assignment of Warrant)

    

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

    ______________________________________________________________________________

    

    ______________________________________________________________________________

    

    (Name
      and
      Address of Assignee Must be Printed or Typewritten)

    

    

    

    the
      within Warrant, hereby irrevocably constituting and appointing
      ____________________ Attorney to transfer said Warrant on the books of the
      Company, with full power of substitution in the premises.

    

    

    Dated:
      _______, ____ __________________________________        Signature
      of Registered Holder

    

    Notice: 
      The
      above signature must correspond with the name as written upon the face of the
      within Warrant certificate in every particular, without alteration or
      enlargement or any change whatever.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]