Document:

Exhibit 10.3 - registration Rights Agreement, June 2, 2006

    Final
      Copy

    

     

    Registration
      Rights Agreement

     

    This
      Registration Rights Agreement (the “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 (“Holders”).
      Capitalized terms used and not defined herein shall have the respective meanings
      ascribed to them in the Securities Purchase Agreement dated as of the date
      hereof by and between the Company and the Holders (the “Purchase
      Agreement”).
      

     

    RECITALS

     

    WHEREAS,
      subject to the terms and conditions of the Purchase Agreement, the Company
      has
      sold and issued to the Holders and the Holders have purchased from the Company
      1,000,000 shares (the “Shares”)
      of the
      common stock of the Company, $0.001 par value per share (the “Common
      Stock”)
      and
      warrants (the “Warrants”)
      to
      purchase up to 1,000,000 shares of Common Stock (the “Warrant
      Shares”
and
      together with the Common Stock and Warrants, the “Securities”),
      to
      the Holders in a private placement (the “Offering”).

     

    NOW,
      THEREFORE, the parties hereto agree as follows: 

     

    1.  Registration
      Procedures and Expenses.
      The
      Company shall: 

     

    (a)  subject
      to receipt of reasonably necessary information from the holder or holders as
      the
      case may be, from time to time, of the Registrable Securities (as defined below)
      (the “Holder” or “Holders”), prepare and file with the Securities and Exchange
      Commission (“SEC”),
      within sixty (60) days after the Closing Date (the “Required
      Filing Date”),
      a
      Registration Statement on Form SB-2 (except if the Company is not then eligible
      to register on Form SB-2, in which case such registration shall be on another
      appropriate form in accordance herewith) (collectively, together with any
      registration statement filed pursuant to clause (b) below, the “Registration
      Statements”)
      to
      enable the resale by the Holders from time to time of (x) the Shares issuable,
      (y) the Warrant Shares issuable and (z) the shares of Common Stock issued or
      issuable upon any stock split, dividend or other distribution, recapitalization
      or similar event with respect to the foregoing (collectively, the “Registrable
      Securities”);
      

     

    (b)  use
      its
      best efforts, subject to receipt of necessary information from each Holder,
      to
      cause each Registration Statement to become effective as soon as practicable,
      but in no event later than one hundred twenty (120) days after the applicable
      Required Filing Date; 

     

    (c)  use
      its
      best efforts to prepare and file with the SEC such amendments and supplements
      to
      the Registration Statements and the Prospectus as may be necessary to keep
      each
      Registration Statement current and effective for a period ending on the earlier
      of (1) the second anniversary of the Closing, (2) the date on which the Holders
      may sell Registrable Securities pursuant to paragraph (k) of Rule 144 under
      the
      Securities Act or any successor rule (“Rule
      144”)
      or (3)
      such time as all Registrable Securities purchased by such Holder in the Offering
      have been sold pursuant to a registration statement or Rule 144 (the
“Effectiveness
      Period”),
      and
      to notify each Holder promptly upon each Registration Statement and each
      post-effective amendment thereto, being declared effective by the SEC;

     

    (d)  furnish
      to any Holder such number of copies of the Registration Statements and
      the
      Prospectuses (including
      supplemental prospectuses) as the Holder may reasonably request, in order to
      facilitate the public sale or other disposition of all or any of the Registrable
      Securities by the Holder; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e)  file
      documents required of the Company for normal blue sky clearance in states
      specified in writing by any Holder; provided, however, that the Company shall
      not be required to qualify to do business or consent to service of process
      in
      any jurisdiction in which it is not now so qualified or has not so consented;
      

     

    (f)  bear
      all
      expenses (other than underwriting discounts and commissions, if any) in
      connection with the procedures in paragraph (a) through (e) of this Section
      1
      and the registration of the Registrable Securities pursuant to the Registration
      Statements; 

     

    (g)  advise
      the Holders, promptly after it shall receive notice or obtain knowledge of
      the
      issuance of any stop order by the SEC delaying or suspending the effectiveness
      of each Registration Statement or of the initiation of any proceeding for that
      purpose; and it will promptly use its commercially reasonable efforts to prevent
      the issuance of any stop order or to obtain its withdrawal at the earliest
      possible moment if such stop order should be issued; and

     

    (h)  with
      a
      view to making available to the Holders the benefits of Rule 144 and any other
      rule or regulation of the SEC that may at any time permit the Holders to sell
      Registrable Securities to the public without registration, the Company covenants
      and agrees to use its commercially reasonable efforts to: (i) make and keep
      public information available, as those terms are understood and defined in
      Rule
      144, until the earlier of (A) such date as all of the Holder’s Registrable
      Securities may be resold pursuant to Rule 144(k) or any other rule of similar
      effect or (B) such date as all of the Holders’ Registrable Securities shall have
      been resold; (ii) file with the SEC in a timely manner all reports and other
      documents required of the Company under the Securities Act and under the
      Exchange Act; and (iii) furnish to each Holder, (A) a written statement by
      the Company that it has complied with the reporting requirements of the
      Securities Act and the Exchange Act, (B) a copy of the Company’s most recent
      Annual Report on Form 10-KSB or Quarterly Report on Form 10-QSB, and (C) such
      other information as may be reasonably requested in order to avail the Holder
      of
      any rule or regulation of the SEC that permits the selling of any such
      Registrable Securities without registration.

     

    It
      shall
      be a condition precedent to the obligations of the Company to take any action
      pursuant to this Section 1 that each Holder shall furnish to the Company a
      completed Questionnaire in the form attached hereto as Exhibit
      A.

     

    The
      Company understands that each Holder disclaims being an underwriter, but
      acknowledges that a determination by the SEC that the Holder is deemed an
      underwriter shall not relieve the Company of any obligations it has
      hereunder.

     

    2.  Transfer
      of Registrable Securities After Registration; Suspension. 

     

    (a)  Each
      Holder agrees that it will not effect any Disposition of the Securities that
      would constitute a sale within the meaning of the Securities Act other than
      in
      transactions exempt from the registration requirements of the Securities Act
      or
      as contemplated in any Registration Statement and as described below, and that
      it will promptly notify the Company of any material changes in the information
      set forth in the Registration Statements regarding the Holder or its plan of
      distribution. 

     

    
      
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    (b)  Except
      in
      the event that paragraph (c) below applies, the Company shall: (i) if deemed
      necessary by the Company, prepare and file from time to time with the SEC a
      post-effective amendment to each Registration Statement or a supplement to
      the
      related Prospectus or a supplement or amendment to any document incorporated
      therein by reference or file any other required document so that such
      Registration Statement will 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 not misleading, and so that, as thereafter delivered
      to purchasers of the Registrable Securities being sold thereunder, such
      Prospectus will 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; (ii) provide the Holders copies of any documents filed pursuant
      to Section 2(b)(i); and (iii) upon request, inform each Holder who so requests
      that the Company has complied with its obligations in Section 2(b)(i) (or that,
      if the Company has filed a post-effective amendment to any Registration
      Statement which has not yet been declared effective, the Company will notify
      the
      Holder to that effect, will use its best efforts to secure the effectiveness
      of
      such post-effective amendment as promptly as possible and will promptly notify
      the Holder pursuant to Section 2(b)(i) hereof when the amendment has become
      effective).

     

    (c)  Subject
      to paragraph (d) below, in the event: (i) of any request by the SEC or any
      other
      federal or state governmental authority during the period of effectiveness
      of
      any Registration Statement for amendments or supplements to the Registration
      Statement or related Prospectus or for additional information; (ii) of the
      issuance by the SEC or any other federal or state governmental authority of
      any
      stop order suspending the effectiveness of any Registration Statement or the
      initiation of any proceedings for that purpose; (iii) of the receipt by the
      Company of any notification with respect to the suspension of the qualification
      or exemption from qualification of any of the Registrable Securities for sale
      in
      any jurisdiction or the initiation of any proceeding for such purpose; or (iv)
      of any event or circumstance which necessitates the making of any changes in
      any
      Registration Statement or Prospectus, or any document incorporated or deemed
      to
      be incorporated therein by reference, so that, in the case of the Registration
      Statement, it will not contain any 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 not misleading, and that in the case of the Prospectus,
      it
      will not contain any 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 the light of the circumstances under which they were made, not
      misleading; then the Company shall promptly deliver a certificate in writing
      to
      the Holders (the “Suspension
      Notice”)
      to the
      effect of the foregoing and, upon receipt of such Suspension Notice, the Holders
      will refrain from selling any Registrable Securities pursuant to the
      Registration Statement (a “Suspension”)
      until
      the Holders are advised in writing by the Company that the current Prospectus
      may be used, and has received copies of any additional or supplemental filings
      that are incorporated or deemed incorporated by reference in any such
      Prospectus. In the event of any Suspension, the Company will use its reasonable
      best efforts to cause the use of the Prospectus so suspended to be resumed
      as
      soon as reasonably practicable after delivery of a Suspension Notice to the
      Holders. In addition to and without limiting any other remedies (including,
      without limitation, at law or at equity) available to the Holders, the Holders
      shall be entitled to specific performance in the event that the Company fails
      to
      comply with the provisions of this Section 2(c). The Holders covenant that
      from
      the date hereof they will maintain in confidence the receipt and content of
      any
      Suspension Notice provided in accordance with this paragraph (c) in
      accordance with and subject to Section 4.6 of Annex I to the Securities Purchase
      Agreement.

     

    (d)  Notwithstanding
      the foregoing paragraphs of this Section 2, the Company shall use its
      commercially reasonable efforts to ensure that any Suspension shall not exceed
      thirty (30) days. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e)  If
      a
      Suspension is not then in effect, the Holders may sell Registrable Securities
      under each Registration Statement, provided that they comply with any applicable
      prospectus delivery requirements. Upon receipt of a request therefor, the
      Company will provide an adequate number of current Prospectuses to each Holder
      and to any other parties requiring such Prospectuses. 

     

    (f)  In
      the
      event of a sale of Registrable Securities by a Holder, unless such requirement
      is waived by the Company in writing, the Holder must also deliver to the
      Company’s transfer agent, with a copy to the Company, a Certificate of
      Subsequent Sale substantially in the form attached hereto as Exhibit
      A,
      so that
      the Registrable Securities may be properly transferred. 

     

    (g)  The
      Company agrees that it shall, immediately prior to each Registration Statement
      being declared effective, deliver to its transfer agent an opinion letter of
      counsel, opining that at any time the Registration Statement is effective,
      the
      transfer agent shall issue, in connection with the sale of the Registrable
      Securities, certificates representing such Registrable Securities without
      restrictive legend, provided the Registrable Securities are to be sold pursuant
      to the Prospectus contained in the Registration Statement and the transfer
      agent
      receives a Certificate of Subsequent Sale in the form attached hereto as
Exhibit
      B.
      Upon
      receipt of such opinion, the Company shall cause the transfer agent to confirm,
      for the benefit of the Holder, that no further opinion of counsel is required
      at
      the time of transfer in order to issue such Registrable Securities without
      restrictive legend.

     

    The
      Company shall cause
      its
      transfer agent to issue
      a
      certificate without any restrictive legend to a purchaser of any Registrable
      Securities from the Holder, if (a) the sale of such Registrable Securities
      is
      registered under the applicable Registration Statement (including registration
      pursuant to Rule 415 under the Securities Act) and a Holder has delivered a
      Certificate of Subsequent Sale to the Transfer Agent; (b) the Holder has
      provided the Company with an opinion of counsel, in form, substance and scope
      customary for opinions of counsel in comparable transactions, to the effect
      that
      a public sale or transfer of such Registrable Securities may be made without
      registration under the Securities Act; or (c) such Registrable Securities are
      sold in compliance with Rule 144 under the Securities Act. In addition, the
      Company shall, at the request of a Holder, remove the restrictive legend from
      any Registrable Securities held by the Holder following the expiration of the
      holding period required by Rule 144(k) under the Securities Act (or any
      successor rule). 

    

    3.  Indemnification.
      For
      the
      purpose of this Section 3:

     

    (a)  the
      term
“Selling
      Shareholder”
shall
      mean each Holder and each person, if any, who controls the Holder within the
      meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act;
      

     

    (b)  the
      term
“Registration
      Statement”
shall
      include any final Prospectus, exhibit, supplement or amendment included in
      or
      relating to, and any document incorporated by reference in, the applicable
      Registration Statement (or deemed to be a part thereof) referred to in Section
      1; and 

     

    (c)  the
      term
“untrue
      statement”
shall
      mean any untrue statement or alleged untrue statement, or any omission or
      alleged omission to state in the applicable Registration Statement a material
      fact required to be stated therein or necessary to make the statements therein,
      not misleading.

     

    (d)  (i)The
      Company agrees to indemnify and hold harmless each Selling Shareholder from
      and
      against any losses, claims, damages or liabilities to which such Selling
      Shareholder may become subject (under the Securities Act or otherwise) insofar
      as such losses, claims, damages or liabilities (or actions or proceedings in
      respect thereof) arise out of, or are based upon (i) any untrue statement of
      a
      material fact contained in any Registration Statement, (ii) any inaccuracy
      in
      the representations and warranties of the Company contained in the Agreement
      or
      the failure of the Company to perform its obligations hereunder or (iii) any
      failure by the Company to fulfill any undertaking included in any Registration
      Statement, and the Company will reimburse such Selling Shareholder for any
      reasonable legal expense or other actual accountable out of pocket expenses
      reasonably incurred in investigating, defending or preparing to defend any
      such
      action, proceeding or claim; provided, however, that the Company shall not
      be
      liable in any such case to the extent that such loss, claim, damage or liability
      arises out of, or is based upon, an untrue statement made in such Registration
      Statement in reliance upon and in conformity with written information furnished
      to the Company by or on behalf of such Selling Shareholder specifically for
      use
      in preparation of the applicable Registration Statement, or any inaccuracy
      in
      representations made by such Selling Shareholder in the Holder Questionnaire
      or
      the failure of such Selling Shareholder to comply with its covenants and
      agreements contained in Sections 4.1, 4.2, 4.3, 4.4 of the Securities Purchase
      Agreement or Section 2 hereof or any statement or omission in any Prospectus
      that is corrected in any subsequent Prospectus that was delivered to the Selling
      Shareholder prior to the pertinent sale or sales by the Selling
      Shareholder.

     

    
      
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    (ii)  Each
      Holder agrees to indemnify and hold harmless the Company (and each person,
      if
      any, who controls the Company within the meaning of Section 15 of the Securities
      Act, each officer of the Company who signs any Registration Statement and each
      director of the Company) from and against any losses, claims, damages or
      liabilities to which the Company (or any such officer, director or controlling
      person) may become subject (under the Securities Act or otherwise), insofar
      as
      such losses, claims, damages or liabilities (or actions or proceedings in
      respect thereof) arise out of, or are based upon, (i) any failure to comply
      with
      the covenants and agreements contained in Sections 4.1, 4.2, 4.3, 4.4 of the
      Securities Purchase Agreement or Section 2 hereof, or (ii) any untrue statement
      of a material fact contained in the Registration Statement if, and only if,
      such
      untrue statement was made in reliance upon and in conformity with written
      information furnished by or on behalf of the Holder specifically for use in
      preparation of the Registration Statement, and the Holder will reimburse the
      Company (or such officer, director or controlling person), as the case may
      be,
      for any reasonable legal expense or other actual accountable out-of-pocket
      expenses reasonably incurred in investigating, defending or preparing to defend
      any such action, proceeding or claim. The obligation to indemnify shall be
      limited to the net amount of the proceeds received by a Holder from the sale
      of
      the Registrable Securities pursuant to the applicable Registration
      Statement.

     

    (iii)  Promptly
      after receipt by any indemnified person of a notice of a claim or the beginning
      of any action in respect of which indemnity is to be sought against an
      indemnifying person pursuant to this Section 3, such indemnified person shall
      notify the indemnifying person in writing of such claim or of the commencement
      of such action, but the omission to so notify the indemnifying party will not
      relieve it from any liability which it may have to any indemnified party under
      this Section 3 (except to the extent that such omission materially and adversely
      affects the indemnifying party’s ability to defend such action) or from any
      liability otherwise than under this Section 3. Subject to the provisions
      hereinafter stated, in case any such action shall be brought against an
      indemnified person, the indemnifying person shall be entitled to participate
      therein, and, to the extent that it shall elect by written notice delivered
      to
      the indemnified party promptly after receiving the aforesaid notice from such
      indemnified party, shall be entitled to assume the defense thereof, with counsel
      reasonably satisfactory to such indemnified person. After notice from the
      indemnifying person to such indemnified person of its election to assume the
      defense thereof (unless it has failed to assume the defense thereof and appoint
      counsel reasonably satisfactory to the indemnified party), such indemnifying
      person shall not be liable to such indemnified person for any legal expenses
      subsequently incurred by such indemnified person in connection with the defense
      thereof; provided, however, that if there exists or shall exist a conflict
      of
      interest that would make it inappropriate, in the reasonable opinion of counsel
      to the indemnified person, for the same counsel to represent both the
      indemnified person and such indemnifying person or any affiliate or associate
      thereof, the indemnified person shall be entitled to retain its own counsel
      at
      the expense of such indemnifying person; provided, however, that no indemnifying
      person shall be responsible for the fees and expenses of more than one separate
      counsel (together with appropriate local counsel) for all indemnified parties.
      In no event shall any indemnifying person be liable in respect of any amounts
      paid in settlement of any action unless the indemnifying person shall have
      approved the terms of such settlement; provided that such consent shall not
      be
      unreasonably withheld. No indemnifying person shall, without the prior written
      consent of the indemnified person, effect any settlement of any pending or
      threatened proceeding in respect of which any indemnified person is or could
      reasonably have been a party and indemnification could have been sought
      hereunder by such indemnified person, unless such settlement includes an
      unconditional release of such indemnified person from all liability on claims
      that are the subject matter of such proceeding.

     

    
      
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    (iv)  If
      the
      indemnification provided for in this Section 3 is unavailable to or insufficient
      to hold harmless an indemnified party under paragraphs 3(d)(i) or 3(d)(ii)
      above
      in respect of any losses, claims, damages or liabilities (or actions or
      proceedings in respect thereof) referred to therein, then each indemnifying
      party shall contribute to the amount paid or payable by such indemnified party
      as a result of such losses, claims, damages or liabilities (or actions in
      respect thereof) in such proportion as is appropriate to reflect the relative
      fault of the Company on the one hand and a Holder on the other in connection
      with the statements or omissions or other matters which resulted in such losses,
      claims, damages or liabilities (or actions in respect thereof), as well as
      any
      other relevant equitable considerations. The relative fault shall be determined
      by reference to, among other things, in the case of an untrue statement, whether
      the untrue statement relates to information supplied by the Company on the
      one
      hand or the Holder on the other and the parties’ relative intent, knowledge,
      access to information and opportunity to correct or prevent such untrue
      statement. The Company and the Holder agree that it would not be just and
      equitable if contribution pursuant to this subsection (d) were determined by
      pro
      rata allocation (even if the Holders were treated as one entity for such
      purpose) or by any other method of allocation which does not take into account
      the equitable considerations referred to above in this subsection (d). The
      amount paid or payable by an indemnified party as a result of the losses,
      claims, damages or liabilities (or actions in respect thereof) referred to
      above
      in this subsection (d) shall be deemed to include any legal or other expenses
      reasonably incurred by such indemnified party in connection with investigating
      or defending any such action or claim. Notwithstanding the provisions of this
      subsection (d), the Holder shall not be required to contribute any amount in
      excess of the amount by which the gross amount received by the Holder from
      the
      sale of the Registrable Securities to which such loss relates exceeds the amount
      of any damages which the Holder has otherwise been required to pay by reason
      of
      such untrue statement. No person guilty of fraudulent misrepresentation (within
      the meaning of Section 11(f) of the Securities Act) shall be entitled to
      contribution from any person who was not guilty of such fraudulent
      misrepresentation. Each Holder’s obligations in this subsection to contribute
      are several in proportion to their sales of Registrable Securities to which
      such
      loss relates and not joint.

     

    The
      parties to this Agreement hereby acknowledge that they are sophisticated
      business persons who were represented by counsel during the negotiations
      regarding the provisions hereof including, without limitation, the provisions
      of
      this Section 3, and are fully informed regarding said provisions. They further
      acknowledge that the provisions of this Section 3 fairly allocate the risks
      in
      light of the ability of the parties to investigate the Company and its business
      in order to assure that adequate disclosure is made in each Registration
      Statement as required by the Securities Act and the Exchange Act.

     

    4.  Termination
      of Conditions and Obligations. The
      conditions precedent imposed by Section 4 of the Securities Purchase Agreement
      or this Section 4 upon the transferability of the Registrable Securities shall
      cease and terminate as to any particular number of the Registrable Securities
      when such Registrable Securities shall have been effectively registered under
      the Securities Act and sold or otherwise disposed of in accordance with the
      intended method of disposition set forth in the Registration Statement covering
      such Registrable Securities or at such time as an opinion of counsel
      satisfactory to the Company shall have been rendered to the effect that such
      conditions are not necessary in order to comply with the Securities Act.

     

    
      
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    5.  Information
      Available. So
      long
      as any Registration Statement is effective covering the resale of Registrable
      Securities owned by a Holder, the Company will furnish (or, to the extent such
      information is available electronically through the Company’s filings with the
      SEC, the Company will make available) to the Holder: 

     

    (a)  as
      soon
      as practicable after it is available, one copy of (i) its Annual Report to
      Shareholders (which Annual Report shall contain financial statements audited
      in
      accordance with generally accepted accounting principles by an independent
      registered public accounting firm, and (ii) if not included in substance in
      the
      Annual Report to Shareholders, its Annual Report on Form 10-KSB (the foregoing,
      in each case, excluding exhibits); 

     

    (b)  upon
      the
      reasonable request of the Holder, all exhibits excluded by the parenthetical
      to
      subsection (a)(ii) of this Section 5 as filed with the SEC and all other
      information that is made available to shareholders; and 

     

    (c)  upon
      the
      reasonable request of the Holder, an adequate number of copies of the
      Prospectuses to supply to any other party requiring such Prospectuses; and
      the
      Company, upon the reasonable request of the Holder, will meet with the Holder
      or
      a representative thereof at the Company’s headquarters during the Company’s
      normal business hours to discuss all information relevant for disclosure in
      the
      Registration Statement covering the Registrable Securities and will otherwise
      reasonably cooperate with the Holder conducting an investigation for the purpose
      of reducing or eliminating the Holder’s exposure to liability under the
      Securities Act, including the reasonable production of information at the
      Company’s headquarters; provided, that the Company shall not be required to
      disclose any confidential information to or meet at its headquarters with the
      Holder until and unless the Holder shall have entered into a confidentiality
      agreement, in form and substance reasonably satisfactory to the Company, with
      the Company with respect thereto.

     

    6.  Piggy-Back
      Registrations. 

     

    (a) If
      at any
      time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than on Form S-4 or Form
      S-8 (each as promulgated under the Securities Act) or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with the stock option or other employee benefit plans, then the
      Company shall give prompt written notice to all Holders of Registrable
      Securities of its intention to do so and of such Holders’ rights under this
      Section 6. Upon the written request of any such Holder made within 15 days
      after
      the receipt of any such notice (which request shall specify the Registrable
      Securities intended to be disposed of by such Holder), the Company will use
      its
      best efforts to effect the registration under the Securities Act of all
      Registrable Securities which the Company has been so requested to register
      by
      the Holders thereof, to the extent requisite to permit the disposition of the
      Registrable Securities to be so registered; provided
      that (i)
      if, at any time after giving written notice of its intention to register any
      securities and prior to the effective date of the registration statement filed
      in connection with such registration, the Company shall determine for any reason
      not to proceed with the proposed registration of the securities to be sold
      by
      it, the Company may, at its election, give written notice of such determination
      to each Holder of Registrable Securities and, thereupon, shall be relieved
      of
      its obligation to register any Registrable Securities in connection with such
      registration (but not from its obligation to pay the registration expenses
      in
      connection therewith), and (ii) if such registration involves an underwritten
      offering, all Holders of Registrable Securities requesting to be included in
      the
      Company’s registration must sell their Registrable Securities to the
      underwriters selected by the Company on the same terms and conditions as apply
      to the Company, with such differences, including any with respect to
      indemnification and liability insurance, as may be customary or appropriate
      in
      combined primary and secondary offerings. If a registration requested pursuant
      to this Section 6(a) involves an underwritten public offering, any Holder of
      Registrable Securities requesting to be included in such registration may elect,
      in writing prior to the effective date of the registration statement filed
      in
      connection with such registration, not to register such securities in connection
      with such registration. The Company will pay all registration expenses in
      connection with each registration of Registrable Securities.

     

    
      
        7

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) If
      a
      registration pursuant to this Section 6 involves an underwritten offering and
      the managing underwriter advises the Company in writing that, in its opinion,
      the number of securities requested to be included in such registration exceeds
      the number which can be sold in such offering, so as to be likely to have an
      adverse effect on the price, timing or distribution of the securities offered
      in
      such offering as contemplated by the Company (other than the Registrable
      Securities), then the Company will include in such registration (i) first,
      100%
      of the securities the Company proposes to sell and (ii) second, to the extent
      of
      the number of Registrable Securities requested to be included in such
      registration pursuant to this Section 6 which, in the opinion of such managing
      underwriter, can be sold without having the adverse effect referred to above,
      the number of Registrable Securities which the Holders have requested to be
      included in such registration, such amount to be allocated pro rata among all
      requesting Holders on the basis of the relative number of shares of Registrable
      Securities then held by each such Holder (provided that any shares thereby
      allocated to any such Holder that exceed such Holder’s request will be
      reallocated among the remaining requesting Holders in like manner).

    

    7.  Limits
      on Additional Issuances.
      Except
      for the issuance of stock options under the Company’s stock option plans, the
      issuance of common stock under
      the
      Company’s employee stock purchase plan or upon
      exercise of outstanding options and warrants and the offering contemplated
      hereby, the Company will not, for a period of six (6) months following the
      Closing Date, offer for sale or sell any securities unless, in the opinion
      of
      the Company’s counsel, such offer or sale does not jeopardize the availability
      of exemptions from the registration and qualification requirements under
      applicable securities laws with respect to the Offering. The foregoing shall
      not
      apply to securities issued in connection with any acquisition, including by
      way
      of merger, or purchase of stock or all or substantially all of the assets of
      any
      third party. Except for the issuance of stock options under the Company’s stock
      option plans, the issuance of common stock under
      the
      Company’s employee stock purchase plan or upon
      exercise of outstanding options and warrants, the issuance of common stock
      purchase warrants, and the offering contemplated hereby, the Company has not
      engaged in any such offering during the six (6) months prior to the date of
      this
      agreement. The foregoing provisions shall not prevent the Company from filing
      a
“shelf” registration statement pursuant to Rule 415 under the Securities Act,
      but the foregoing provisions shall apply to any sale of securities
      thereunder.

     

    8.  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, (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: 

     

    
      
        8

      

      
        
        

        
          

        

      

      
        
        

      

    

    (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 a
      Holder, at its address on the signature page to the Stock Purchase
      Agreement.

     

    9.  Amendments;
      Waiver. This
      Agreement may not be modified or amended except pursuant to an instrument in
      writing signed by the Company and a majority in interest of the Holders. 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.

     

    10.  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 Holder may assign all or any of its rights and
      obligations hereunder to any affiliate of Holder that is controlled, directly
      or
      indirectly, by Renaissance Capital Group, Inc. (any such assignment by the
      Holder pursuant to the preceding proviso shall not, however, release or be
      deemed to release the Holder from its obligations hereunder, and the Holder
      shall remain liable for all such obligations).

     

    11.  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. 

     

    12.  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.  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. 

     

    14.  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.

     

    
      
        9

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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:
      Russell Cleveland

    

    

     

    

     

    SYMBOLLON
      PHARMACEUTICALS, INC.

     

    

     

    

     

    By:
      /s/ Paul C. Desjourdy

    Paul
      C.
      Desjourdy

    President/CEO

    

    

    

    

    

    

    

    

    [REGISTRATION
      RIGHTS AGREEMENT SIGNATURE PAGE]

    

    
      
        10

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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:
      Russell Cleveland

    

    

     

    

     

    SYMBOLLON
      PHARMACEUTICALS, INC.

     

    

     

    

     

    By:
      /s/ Paul C. Desjourdy

    Paul
      C.
      Desjourdy

    President/CEO

    

    

    

    

    

    

    

    

    [REGISTRATION
      RIGHTS AGREEMENT SIGNATURE PAGE]

    

    

    
      
        10

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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:
      Russell Cleveland

    

    

     

    

     

    SYMBOLLON
      PHARMACEUTICALS, INC.

     

    

     

    

     

    By: 
      /s/ Paul C. Desjourdy

     

         Paul
      C.
      Desjourdy

    President/CEO

    

    

    

    

    

    

    

    

    [REGISTRATION
      RIGHTS AGREEMENT SIGNATURE PAGE]

    

    

    
      
        10

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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:
      Russell Cleveland

    

    

     

    

     

    SYMBOLLON
      PHARMACEUTICALS, INC.

     

    

     

    

     

    By: 
      /s/ Paul C. Desjourdy

    Paul
      C.
      Desjourdy

    President/CEO

    

    

    

    

    

    

    

    

    [REGISTRATION
      RIGHTS AGREEMENT SIGNATURE PAGE]

    

    

    

    

    
      
        
          10

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Exhibit
      A

     

    Symbollon
      Pharmaceuticals, Inc.

    Selling
      Securityholder Questionnaire

     

    The
      undersigned beneficial owner of shares of Common Stock (including shares that
      may be acquired upon exercise of warrants) (the “Registrable
      Securities”)
      of
      Symbollon Pharmaceuticals, Inc. (the “Company”)
      understands that the Company has filed or intends to file with the Securities
      and Exchange Commission a registration statement (the “Registration
      Statement”)
      for the
      registration and resale under the Securities Act of 1933, as amended (the
“Securities
      Act”),
      of the
      Registrable Securities. This Questionnaire is delivered pursuant to the terms
      of
      the Registration Rights Agreement, dated as of June __, 2006 (the “Registration
      Rights Agreement”),
      among
      the Company and the Holders named therein. A copy of the Registration Rights
      Agreement is available from the Company upon request at the address set forth
      below. All capitalized terms not otherwise defined herein shall have the
      meanings ascribed thereto in the Registration Rights Agreement.

     

    Certain
      legal consequences arise from being named as a selling securityholder in the
      Registration Statement and the related prospectus. Accordingly, holders and
      beneficial owners of Registrable Securities are advised to consult their own
      securities law counsel regarding the consequences of being named or not being
      named as a selling securityholder in the Registration Statement and the related
      prospectus.

     

    The
      undersigned beneficial owner (the “Selling
      Securityholder”)
      of
      Registrable Securities hereby elects to include the Registrable Securities
      owned
      by it and listed below in Item 3 (unless otherwise specified under such Item
      3)
      in the Registration Statement.

     

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

     

    1. Name.

     

    
      	 	
              (a)

            	
              Full
                Legal Name of Selling
                Securityholder

            

    

     

    
      	 
	 

    

    

    
      	 	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities Listed in Item 3 below are
                held:

            

    

     

    
      	 
	 

    

    

    
      	 	
              (c)

            	
              Full
                Legal Name of each Control Person (which means a natural person that
                directly or indirectly has power to vote or dispose of the securities
                covered by this Questionnaire):

            

    

     

    
      	 
	 

    

    

     

    
      
        A-1

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.
      Address for Notices to Selling Securityholder:

     

    
      	 
	 
	 
	
              Telephone: 

            
	
              Fax: 

            
	
              Contact
                Person: 

            

    

    

    3.
      Beneficial Ownership of Registrable Securities:

     

    
      	 	
              (a)

            	
              Type
                and Principal Amount of Registrable Securities beneficially
                owned:

            

    

     

    
      	 
	 
	 
	 

    

    

     

    4.
      Broker-Dealer Status:

     

    
      	 	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes
       No
      

     

    
      	 	
              Note:

            	
              If
                yes, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    
      	 	
              (b)

            	
              Are
                you an affiliate of a
                broker-dealer?

            

    

     

    Yes
       No
      

     

    
      	 	
              (c)

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                bought
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable
                Securities?

            

    

     

    Yes
       No
      

     

    
      	 	
              Note:

            	
              If
                no, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    5.
      Beneficial Ownership of Other Securities of the Company Owned by the Selling
      Securityholder.

     

    Except
      as set forth below in this Item 5, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the Registrable
      Securities listed above in Item 3.

     

    
      	 	
              (a)

            	
              Type
                and Amount of Other Securities beneficially owned by the Selling
                Securityholder:

            

    

     

    
      	 
	 
	 

    

    

    
      
        A-2

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.
      Relationships with the Company:

     

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

     

    State
      any
      exceptions here:

     

    
      	 
	 
	 

    

    

     

    7. Claims
      against the Company:

     

    Except
      as set forth below, to the actual knowledge of the officers and directors or
      persons performing similar functions for the undersigned, neither the
      undersigned nor any of its Affiliates, officers, directors or principal equity
      holders (owners of 5% or more of the equity securities of the undersigned)
      has
      any claims against the Company, its directors, officers, agents and employees,
      and each Person who controls the Company (within the meaning of Section 15
      of
      the Securities Act and Section 20 of the Exchange Act) relating to the Company’s
      sale of Registrable Securities to the undersigned.

     

    State
      any
      exceptions here:

     

    ________________________________________________________________________________________________________________________________________________________________________________________________________________________

     

    

     

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein (other than changes in beneficial ownership
      of Common Stock after the effectiveness of the Registration Statement) that
      may
      occur subsequent to the date hereof at any time prior to the effectiveness
      of
      the Registration Statement or while the Registration Statement remains
      effective.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers hereto and the inclusion of such information
      in
      the Registration Statement and the related prospectus and any amendments or
      supplements thereto. The undersigned understands that such information will
      be
      relied upon by the Company in connection with the preparation or amendment
      of
      the Registration Statement and the related prospectus.

     

    
      
        A-3

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this
      Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

     

    Dated:
        Beneficial
      Owner:  

    
      

    

    By:  

    Name:

    Title:

    

    

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED QUESTIONNAIRE, AND RETURN THE ORIGINAL
      BY OVERNIGHT MAIL, TO:  

    

    Paul
      C. Desjourdy

    Symbollon
      Pharmaceuticals, Inc.

    37
      Loring Drive

    Framingham,
      MA 01702

    Fax
      No. (508) 620-7111

     

    

     

    
      
        
          A-4

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    Exhibit
      B

     

    Symbollon
      Pharmaceuticals, Inc.

    CERTIFICATE
      OF SUBSEQUENT SALE

    

    [Transfer
      Agent]

    

     

    
      	 	
              RE:

            	
              Sale
                of Securities of Common Stock of Symbollon Pharmaceuticals, Inc.
                (the
                “Company”)
                pursuant to the Company’s Prospectus dated _______________, 2006 (the
                “Prospectus”)

            

    

     

    Dear
      Sir/Madam:

     

    The
      undersigned hereby certifies, in connection with the sale of shares of Common
      Stock of the Company included in the table of Selling Shareholders in the
      Prospectus, that the undersigned has sold the Shares pursuant to the Prospectus
      and in a manner described under the caption “Plan of Distribution” in the
      Prospectus and that such sale complies with all applicable securities laws,
      including, without limitation, the Prospectus delivery requirements of the
      Securities Act of 1933, as amended.

     

    Selling
      Shareholder (the beneficial owner):

     

    Record
      Holder (e.g., if held in name of nominee):

     

    Restricted
      Stock Certificate No.(s):

     

    Number
      of
      Shares Sold:

     

    Date
      of
      Sale:

     

    In
      the
      event that you receive a stock certificate(s) representing more shares of Common
      Stock than have been sold by the undersigned, then you should return to the
      undersigned a newly issued certificate for such excess shares in the name of
      the
      Record Holder and BEARING A RESTRICTIVE LEGEND. Further, you should place a
      stop
      transfer on your records with regard to such certificate.

     

    Dated:        Very
      truly yours,

     

    By:

     

    Print
      Name:

     

    Title:Exhibit 10.1

SECOND AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

             This SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT dated as of May 31, 2006 (this
"Amendment"), is by and among JOS. A. BANK CLOTHIERS, INC., a Delaware corporation ("Company"), WELLS FARGO RETAIL FINANCE II, LLC ("WFRF")and the other lending institutions listed on the signature pages to the Credit Agreement (as hereinafter defined) (each individually referred to herein as a "Lender" and collectively as "Lenders"), and WELLS FARGO RETAIL FINANCE II, LLC, as agent for
Lenders (in such capacity, "Agent"). Capitalized terms not otherwise defined herein which are defined in the Credit Agreement shall have the same respective meanings herein as
therein. 

             WHEREAS, Company, Lenders and Agent are parties to an Amended and Restated Credit Agreement dated as of January 6, 2004 (as amended and in effect
from time to time, the "Credit Agreement"), pursuant to which Lenders have agreed, upon certain terms
and conditions, to make loans and otherwise extend credit to Company; and 

             WHEREAS, Company and Lenders have agreed to modify certain terms and conditions of the Credit Agreement as specifically set forth in this Amendment;

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

             §1.      Amendment to Section 1.1 of the Credit
Agreement. Section 1.1 of the Credit Agreement is hereby amended as follows: 

            (a)      by deleting the definitions of “Applicable Margin”, “Availability Reserves”, “Eligible Inventory Borrowing Base”, “Maturity Date” and “Permitted Acquisitions” in their
entirety and substituting the following new definitions in proper alphabetical order in lieu thereof:

     "Applicable Margin" means, for each period commencing on an Adjustment Date through the date immediately preceding the next Adjustment Date (each a "Rate
Adjustment Period"), the Applicable Margin shall be the applicable margin set forth below with respect to the Excess Availability based on
the average Excess Availability for the fiscal quarter ended immediately prior to the applicable Rate Adjustment Period. 

	 

		 
		

	  
    	
	  
    	
      
        LIBOR
	    	
	  
    	
      
        Prime
	    	
	  
    	

	  
    	
	  
    	

	  
    	 

	
	
Level 
		 
		
      
        Excess Availability 
	    	
	  
    	
      
        Rate
	    	
	  
    	
      
        Rate
	    	
	  
    	
      
        Documentary
	    	
	  
    	
      
        Standby
	    	 

	
	 

		 
		

	  
    	
	  
    	
      
        Margin
	    	
	  
    	
      
        Margin
	    	
	  
    	
      
        L/Cs
	    	
	  
    	
      
        L/Cs
	    	 

	
	

		

		

		

		

		

		

		

		

		

		

		 
	
	
I 
		 
		
Greater than 
		 
		

		 
		

		 
		

		 
		

		 

	
	 

		 
		
  $45,000,000 
		 
		
      
        1.00%
	    	
	  
    	
      
        -0.25%
	    	
	  
    	
      
        0.50%
	    	
	  
    	
      
        1.00%
	    	 
	

		

		

		

		

		
	  
	    

      	

		
	  
	    

      	

		
	  
	    

      	

		 
	
	
II 
		 
		
Less than or equal to 
		 
		

	  
    	
	  
    	

	  
    	
	  
    	

	  
    	
	  
    	

	  
    	 

	
	 

		 
		
$45,000,000 but greater 
		 
		
      
        1.25%
	    	
	  
    	
      
        0.00%
	    	
	  
    	
      
        0.75%
	    	
	  
    	
      
        1.25%
	    	 
	 

		 
		
       than $20,000,000 
	    
	 
		

	  
    	
	  
    	

	  
    	
	  
    	

	  
    	
	  
    	

	  
    	 

	
	

		

		

		

		

		
	  
	    

      	

		
	  
	    

      	

		
	  
	    

      	

		 
	
	
III 
		 
		
Less than or equal to 
		 
		

	  
    	
	  
    	

	  
    	
	  
    	

	  
    	
	  
    	

	  
    	 

	
	 

		 
		 $20,000,000 
		 
		
      
        1.50%
	    	
	  
    	
      
        0.00%
	    	
	  
    	
      
        1.00%
	    	
	  
    	
      
        1.375%
	    	 
	

		

		

		

		

		

		

		

		

		

		

		 
	

 

     Notwithstanding the foregoing, (a) for the Loans outstanding and the Letters of Credit fees payable during the period commencing on the Second Amendment Effective Date and ending on the last
day of Company’s fiscal quarter ending on or about April 30, 2006, the Applicable Margin shall be the Applicable Margin set forth in Level I above, and (b) if Company fails to deliver any Compliance Certificate pursuant to subsection 5.1(vi)
hereof then, for the period commencing on the next Adjustment Date to occur subsequent to such failure through the date immediately following the date on which such Compliance Certificate is delivered, the Applicable Margin shall be the highest
Applicable Margin set forth above. 

     "Availability Reserves" means such reserves as Agent from time to time determines in its reasonable discretion as being appropriate to reflect the impediments to Agent’s ability to realize
upon the Collateral.  Without limiting the generality of the foregoing, Availability Reserves may include (but are not limited to) reserves based on the following: (a) rent (in an amount to be determined in Agent’s reasonable discretion, but
which shall be no more than one (1) month’s rent) for any leased store location in a jurisdiction which recognizes landlord Liens for which a collateral access agreement, landlord lien waiver or functional equivalent, in each case in form and
substance satisfactory to Agent (it being agreed by the parties hereto that landlord lien waiver language contained within any lease in form substantially similar to the language set forth on Exhibit VII annexed hereto shall be deemed acceptable by Agent), has not been received by Agent (irrespective of whether any
rent is currently due); (b) returns, customer credits, gift certificates, layaway obligations, frequent shopper programs and similar liabilities of Company and its Subsidiaries to their retail customers and prospective customers; (c) payables (based
upon payables which are 60 days or more past due); (d) customer deposits; (e) taxes and other governmental charges, including tax Liens, ad valorem, personal property, sales, and other taxes which may have priority over the security interests of the
Lenders in the Collateral; (f) held or post-dated checks issued by Company; (g) any judgment lien against Company or any Collateral; (h) Company’s failure to pay when due and payable Indebtedness owing to any trade creditor; and (i)
non-duplicative Letter of Credit reserves; provided, however, Availability Reserves shall not include
reserves based on gift certificates or customer deposits so long as Excess Availability exceeds $15,000,000. 

     "Eligible Inventory Borrowing Base" means: (i) for the period commencing December 1st through August
31st of each calendar year, the lesser of: (a) 75% of the Cost of the sum of Eligible Landed Inventory and Eligible L/C Inventory; and (b) 85% of the Net Liquidation Value
of the sum of Eligible Landed Inventory and Eligible L/C Inventory; (ii) for the period commencing September 1st through November 30th of each calendar year, the lesser of:
(a) 80% of the Cost of the sum of Eligible Landed Inventory and Eligible L/C Inventory; and (b) 90% of the Net Liquidation Value of the sum of Eligible Landed Inventory and Eligible L/C Inventory; plus (iii) the lesser of (a) $3,000,000 and (b) 80% of the Net Liquidation Value of Eligible Raw Materials Inventory; minus (iv) the Inventory Reserve. 

     "Maturity Date" means April 30, 2010.

     "Permitted Acquisitions" means acquisitions by Company and its Subsidiaries of real or personal property not to exceed $40,000,000 in the aggregate after the date hereof, provided that Excess Availability exceeds $25,000,000 both before and after giving effect to any such acquisitions. Notwithstanding the foregoing Excess Availability

requirements, Company and its Subsidiaries may purchase an aircraft to be used in connection with Company’s and its Subsidiaries’ businesses in an aggregate amount not to exceed $10,000,000. 

(b) by adding the following new definition in proper alphabetical order therein: 

     "Second Amendment Effective Date" means the occurrence of the “Effective Date” under and as defined in Section 7 of that certain Second Amendment to Amended and Restated Credit
Agreement dated as of May 31, 2006, by and among Company, Agent and the Lenders. 

          §2.      Amendment to Section 2.1 of the Credit Agreement. Section 2.1 of the Credit Agreement is hereby amended by deleting paragraph H of such Section in its entirety and substituting the following new
paragraph H in proper numerical and alphabetical order in lieu thereof: 

     “H. Accordion Option. Unless a Potential Event of Default or an Event of Default has occurred and is then
continuing and except as otherwise provided herein, Company may make a maximum of one (1) request that the Accordion Lenders increase their Commitments hereunder (such increase, the "Accordion Activation"); provided that (i) Company shall have made such request subsequent to the Closing Date but prior to April 30, 2008, (ii) in no event shall the Commitments of the Accordion Lenders be increased
pursuant to this subsection 2.1H by an amount which exceeds, in the aggregate, the Accordion Amount, (iii) in no event shall the Commitment of all Lenders be increased under this subsection 2.1H so as to exceed, in the aggregate, the Maximum
Revolving Amount, (iv) on the effective date specified in any Confirmation of Increase in Commitment hereunder (as defined below), Company shall pay to Agent for the pro rata accounts of the Accordion Lenders, a nonrefundable activation fee in an
amount equal to 0.25% of the aggregate amount of the increase in Commitments as a result of such Accordion Activation, and (v) no Potential Event of Default or Event of Default will occur as a result of such Accordion Activation. Upon a request by
Company hereunder, each Accordion Lender shall increase its Commitment by an amount equal to its Accordion Commitment. The amount of each Accordion Lender's Accordion Commitment is set forth opposite its name on Schedule 2.1 annexed hereto. Each Accordion Lender increasing its Commitment pursuant to this subsection 2.1H shall execute a Confirmation of Increase in Commitment in the form of Exhibit VI attached
hereto (a “Confirmation of Increase in Commitment”). 

     On the effective date of the Accordion Activation effected in accordance with this subsection 2.1H, Schedule
2.1 annexed hereto shall be deemed to be amended to reflect (a) the name, address, Commitment, and Pro Rata Share of each Lender and (B) the Maximum Revolving Amount as
increased by such Accordion Activation.” 

          §3.      Amendment to Section 2.3 of the Credit Agreement. Section 2.3 of the Credit Agreement is hereby amended by deleting Section 2.3F in its entirety and substituting the following new Section 2.3F
in proper numerical and alphabetical order in lieu thereof: 

     “F. Computation of Interest.  Interest (and fees payable on a per annum basis) on the Loans shall be computed on
the basis of a 360-day year for the actual number of days elapsed in the period during which it accrues. For purposes of calculating

 

interest on the Loans, payments of principal or other funds received will be applied (conditional upon final collection) as a principal reduction on the Loans on the Business Day of receipt by Agent of the inter-branch
advice of deposit that such payments or other funds have been deposited in the Cash Collateral Account, if such payments are received within sufficient time (in accordance with Agent’s usual and customary practices as in effect from time to
time) and if not, then on the next Business Day. For purposes of calculating the amount of the Loans available to Company, such payments will be applied (conditional upon final collection) to the Loans on the Business Day of receipt by Agent, if
such payments are received within sufficient time (in accordance with Agent’s usual and customary practices as in effect from time to time) to credit Company's loan account on such day, and if not, then on the next Business
Day.” 

          §4.      Amendment to Section 2.4 of the Credit Agreement. Section 2.4 of the Credit Agreement is hereby amended by deleting subparagraph (i) of Section 2.4A in its entirety and substituting the
following new subparagraph (i) in proper numerical and alphabetical order in lieu thereof: 

     “(i) an unused line fee equal to: (a) the average daily Maximum Revolving Amount minus the average daily amount of
the sum of the average of the daily amount of Loans and the Letter of Credit Usage; times (b) 0.25% per annum calculated on the basis of a 360-day year and the actual number of
days elapsed and payable monthly in arrears on the first day of each calendar month through the Maturity Date so long as this Agreement has not terminated, provided,
however, that if this Agreement terminates on a date other than the first day of a month, the unused line fee will be prorated for the partial month on which the termination
occurs and payable on the date of termination;” 

          §5.      Amendment to Section 5.8 of the Credit Agreement. Section 5.8 of the Credit Agreement is hereby amended by deleting subparagraph (ii) of Section 5.8A in its entirety and substituting the
following new subparagraph (ii) in proper numerical and alphabetical order in lieu thereof: 

     “(ii) within 120 days, landlord lien waivers or functional equivalent (it being agreed by the parties hereto that landlord lien waiver language in form substantially similar to the
language set forth on Exhibit VII annexed hereto shall be deemed acceptable by Agent) from all
landlords of any location where Collateral is maintained and which jurisdiction has a statutory landlord’s lien, failing which the Current Asset Borrowing Base shall be reduced by one (1) month’s rent for each location with respect to
which a waiver is not so provided.” 

          §6.      Successor Agent;
Omnibus Amendment to Loan Documents. WFRF, in its capacity as Agent, has informed Company and the Lenders that it may assign its interest as Agent under the Credit Agreement
and the other Loan Documents to an Affiliate of WFRF, Wells Fargo Retail Finance, LLC (the "Successor Agent").  Notwithstanding the provisions of the Credit Agreement, including, without limitation, the notice and consent requirements set forth in Section 8.6 of the Credit Agreement, each of the parties hereto hereby consents to WFRF’s
contemplated assignment to the Successor Agent and hereby acknowledges and agrees that, to the extent WFRF elects to assign its interest as Agent under the Credit Agreement and the other Loan Documents to the Successor Agent, no further consent or
other action shall be required on behalf of such Person in order for such assignment to become effective. Each of the parties hereto hereby further agrees that upon consummation of any such assignment from WFRF to the Successor Agent (the
effectiveness of such consummation to be evidenced by written notice delivered from WFRF to

 

Company and each Lender), (i) the Successor Agent shall be deemed accepted as Agent by Company and the Lenders and shall become a party to the Loan Documents in such capacity and shall entitled to all the benefits afforded
to the Agent under the Loan Documents, all as if the Successor Agent had been the "Agent" party to the original execution and delivery thereof, (ii) notwithstanding the provisions of Section 8.7 of the Credit Agreement, the Successor Agent shall be
authorized to enter into any amendments to and/or modifications of the Collateral Documents to reflect such assignment and (iii) all references in the Loan Documents to the "Agent" shall thereafter be deemed to be references to the Successor Agent.

          §7.      Conditions to Effectiveness.  The provisions of this Amendment shall be deemed effective as of March 1, 2006 (the “Effective Date”) upon satisfaction of each of the following conditions, in each case in a manner and in form and
substance satisfactory to Agent: 

          (a)      This Amendment shall have been duly executed and delivered by each of Company, Agent and the Lenders; 

          (b)      Agent shall have received such evidence of corporate authority of Company to execute this Amendment as Agent may reasonably have requested; and 

          (c)      Agent shall have received for the accounts of the Lenders payment of a closing fee in the amount of $50,000. 

           §8.      Representations and Warranties. Company hereby repeats, on and as of the date hereof, each of the representations and
warranties made by it in Section 4 of the Credit Agreement, provided, that all references therein to the Credit Agreement shall refer to such Credit Agreement as amended
hereby. In addition, Company hereby represents and warrants that the execution and delivery by Company of this Amendment and the performance by Company of all of its agreements and obligations under the Credit Agreement as amended hereby are within
the authority of Company and have been duly authorized by all necessary action on the part of Company. 

           §9.      Ratification, Etc. Except as expressly amended hereby, the Credit Agreement and all documents, instruments and agreements related thereto, including, but not limited to the Collateral Documents, are hereby ratified and confirmed in all respects and
shall continue in full force and effect. The Credit Agreement and this Amendment shall be read and construed as a single agreement. All references in the Credit Agreement or any related agreement or instrument to the Credit Agreement shall hereafter
refer to the Credit Agreement as amended hereby. 

           §10.      No Waiver.  Except as otherwise specifically contained herein, nothing contained herein shall constitute a waiver of, impair or otherwise affect any Obligations, any other obligation of Company or any rights
of Agent or Lenders consequent thereon. 

           §11.      Counterparts. This Amendment may be executed in one or more counterparts, each of which
shall be deemed an original but which together shall constitute one and the same instrument. 

           §12.      Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS  (WITHOUT REGARDS TO CONFLICTS OF LAW PRINCIPLES). 

 

[Remainder of page intentionally left blank]

 

           IN WITNESS WHEREOF, the parties hereto have executed this Amendment as a document under seal as of the date first above written.   

	 	 	 	 	 
	 	JOS. A BANK CLOTHIERS, INC.	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	
      By: 
      
	
/s/ David E. Ullman 
		 
		 

	
	 	
	  
	

		
		 
	
	 	
      Title: 
      
	
Executive Vice President, CFO 
		 
		 

	
	 	 
		

		
		 
	

 

 

 

	 	 	 
	 	 	 
	 	 	 
	 	LENDERS AND AGENT: 
	 	 
	 	WELLS FARGO RETAIL FINANCE II, LLC, as Lender and as Agent 
	 	 
	 	 
	 	 	 
	 	 	 
	 	
By: 
		
/s/ Jennifer Blanchette 
	
		
		

	
	 	
Title: 
		
Vice President 
	
	 	 
		

	

 

 

	 	 
	 	NATIONAL CITY BUSINESS CREDIT, INC.
	 	 	 
	 	 	 
	 	 	 
	 	
By: 
		
/s/ Joe Kwasny 
	
		
		

	
	 	
Title: 
		
Director 
	
		
		

	

 

 

	 	 	 
	 	SIEMENS FINANCIAL SERVICES, INC.
	 	 	 
	 	 	 
	 	
By: 
		
/s/ Joseph A. Accardi 
	
		
		

	
	 	
Title: 
		
Managing Director 
	
	 	 
		

	

 

 

	 	 	 
	 	 
	 	WACHOVIA BANK 

    NATIONAL ASSOCIATION
	 	 	 
	 	 	 
	 	
By: 
		
/s/ Elizabeth Morris

	 	 
		

	
	 	
Title: 
		
Director

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