Document:

Loan Agreement

 EXHIBIT 4.34 
  

					
			 UNOFFICIAL TRANSLATION
  

LOAN OFFER
		Page 1 of 7

 File: D139734 
 Company: E021661

 This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014 

 
  

			
	FROM:		INVESTISSEMENT QUÉBEC, a corporation established pursuant to the Act respecting Investissement Québec (L.R.Q., c. I-16.0.1) whose head office is located at 1200 route de l’Église, office 500, Quebec
City, Quebec, G1V 5A3, and with an office on 413 St-Jacques street, office 500, Montreal, Quebec, H2Y 1N9 (herein referred to as “IQ”).
		
	TO:		BIRKS GROUP INC., a duly constituted corporation whose head office is located at 1240 Phillips Square, Montreal, Quebec, H3B 3H4 (herein referred to as the “Company”).

  

	1.	LOAN 

  

	 	1.1.	IQ offers the Company a loan of two million dollars ($2,000,000) (herein referred to as the “Loan”), under the terms and conditions set forth herein. 

 

	 	1.2.	The words and expressions used herein and capitalized herein take on the meaning enumerated in Annex A, unless another distinctive meaning is specified, either in relation to the context or for the terms of a specific
clause. 

  

	 	1.3.	The Annexes herein form an integral part of this Loan Offer: 

 A GENERAL TERMS AND CONDITIONS OF
THE LOAN 
 B PROJECT AND FINANCING 

C PRE-AUTHORIZED DEBIT 
 D
POSTPONEMENT OF REPAYMENT OF CLAIM BY MONTROVEST B.V. 
  

	2.	PROJECT 

  

	 	2.1.	The Loan is offered solely for the improvement of the Company’s working capital (herein referred to as the “Project”), which, along with its financing, is described in Annex B herein. 

 

	3.	DISBURSEMENT 

  

	 	3.1.	IQ will make the Loan in one (1) disbursement, provided that the Company is not in default of one or more of the terms and conditions set forth herein. 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			
			UNOFFICIAL TRANSLATION		Page 2 of 7
			
			LOAN OFFER		
					
	File: D139734				
	Company: E021661				
					
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 
  

	4.	COMMITMENTS TO BE MET PRIOR TO THE DISBURSEMENT OF THE LOAN 

  

	 	4.1.	The disbursement of the Loan will only be made when IQ has obtained to its satisfaction, the following: 

  

	 	4.1.1.	The security provided for under the heading “SECURITY INTERESTS” herein with their confirmation of registration; 

  

	 	4.1.2.	The legal opinions from the Company’s external counsel with respect to the Company’s corporate status and borrowing capacity, the validity of the security provided for under the heading “SECURITY
INTERESTS” herein, the rank of such security, the Company’s capacity to provide such security, the enforceability of such security and any other item IQ may reasonably require; 

 

	 	4.1.3.	An up to date list of the equipment valued at more than twenty-five thousand dollars ($25,000) belonging to the Company, as well as a list of all intellectual property rights registered in the relevant registries, the
whole to the satisfaction of IQ; 

  

	 	4.1.4.	A postponement of repayment granted by Montrovest B.V. to Company pertaining to its advance to Company of one million five hundred thousand dollars ($1,500,000), with interest at the maximum rate of eleven percent
(11%) per year, in accordance with the terms of Annex D herein, with the understanding that the total amount of the claim can be converted into Class A voting shares from the share capital of the Company, in accordance;

  

	 	4.1.5.	A written confirmation from the Company’s external auditors stating that they can issue an unconditional opinion concerning the Company’s financial statements for the financial year ending March 31, 2014,
taking into account the improvement of the conditions provided for in the amendments entered into between the Company and its first ranking lenders on June 10, 2014. 

 

	 	4.1.6.	A written confirmation from the company’s board of directors of the consolidation of its Florida corporate office in its Montreal head office. 

 

	 	4.1.7.	Written confirmation that the Company has obtained at least one million dollars ($1 million) in financing from Bristol Real Estate SA - Capital Lease reimbursable over a period of 36 months and on terms acceptable to
IQ. 

  

	 	4.2.	Prior to the disbursement of the Loan, the Company will have to have submitted to IQ a disbursement request in a form acceptable to IQ, accompanied by the relevant pertaining documents. 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			
			UNOFFICIAL TRANSLATION		 Page
 3
 of 7
			
			LOAN OFFER		
					
	File: D139734				
	Company: E021661				
					
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 
  

	5.	SPECIFIC COMMITMENTS TO BE MET BY THE COMPANY 

  

	 	5.1.	In addition to the general undertakings stipulated in this Loan Offer, the Company commits to, from the date of acceptance of this Loan Offer and until the full repayment of the Loan: 

 

	 	5.1.1	Maintaining a minimum working capital ratio of one point fifteen (1.15); 

  

	 	5.1.2	Maintaining a maximum long-term debt ratio on adjusted net worth of two point five (2.5); 

  

	 	5.1.3	Providing its audited annual consolidated financial statements within one hundred twenty (120) days of the end of any fiscal year thereto; 

 

	 	5.1.4	Not reimbursing the advances made by the person mentioned at subparagraph 4.1.5, which advances will be extended by that person, however understood and agreed that these advances might be converted into capital stock;

  

	 	5.1.5	Providing to IQ, within thirty (30) days following the filing of annual information forms by the Company with the New York Stock Exchange (herein referred to as “NYSE”) or any appropriate authorities
responsible for the regulation of securities. 

  

	6.	INTEREST RATE 

  

	 	6.1.	The Loan will generate interest as of each disbursement, at a rate calculated monthly, equal to the Prime rate increased by a certain percentage (herein referred to as the “Variable rate”). The increase is
seven percent (10%) for a term of sixty (60) months, from the date of the first disbursement of the Loan (herein referred to as the “Initial term”). 

 

	 	6.2	The Prime rate is currently established, for reference purposes only, at three percent (3%) per year. 

  

	7.	PAYMENT OF INTEREST 

  

	 	7.1.	The Company will pay the interest, calculated at the rate and in accordance with the method prescribed under “INTEREST RATE”, on the last day of each month, starting on the last day of the month following the
first disbursement of the Loan. 

  

	8.	REPAYMENT OF THE LOAN 

  

	 	8.1.	The Company shall benefit from a moratorium from the reimbursement of the Loan for a period of twelve (12) months as of the date of the first disbursement of the Loan. 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			
			UNOFFICIAL TRANSLATION		 Page
 4
 of 7
			
			LOAN OFFER		
					
	File: D139734				
	Company: E021661				
					
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 
  

	 	8.2.	Following the moratorium period prescribed in the previous paragraph, the Company will reimburse the Loan in (48) consecutive monthly installments, payable on the last day of each month, starting on the last day of
the first month following the moratorium period, as follows: 

  

	 	8.2.1.	In forty-seven (47) installments of forty-one thousand five hundred dollars ($41,500); and 

  

	 	8.2.2.	One final installment of forty-nine thousand five hundred dollars ($49,500). 

  

	 	8.3.	The amounts of the monthly installments prescribed in the previous paragraph is calculated following an amortization period of forty-eight (48) months (herein referred to as the “Amortization”).

  

	 	8.4.	Notwithstanding the provisions set forth in the previous paragraphs, on the last day of the last month of the Term, or, on the last day of the previous month if the end of the Term occurs after the 20th day of the month, any balance due in capital, interest and fees will become payable and the Company will immediately be required to reimburse the balance of the Loan, unless the Loan is renewed as
prescribed below. 

  

	9.	RENEWAL OF THE LOAN 

  

	 	9.1	If the Loan bears interest at the Variable rate and the Amortization is not attained, the Loan will automatically be renewed at the end of the term under the same conditions stated in this Loan Offer, and these will be
applied to the Loan following such automatic renewal, unless a) IQ provides at least thirty (30) days before the end of the term a notice to the Company, specifying the new conditions of the Loan, or requesting the reimbursement of the Loan, or
b) the Company reimburses the Loan. 

  

	 	9.2	If the Loan bears interest at a fixed rate, a) IQ will provide at least thirty (30) days before the end of the term a notice to the Company, specifying the new conditions of the Loan, or requesting the
reimbursement of the Loan, or b) the Company will reimburse the Loan at the end of the term. 

  

	 	9.3	If IQ provides a renewal notice to the Company and at the end of the term the Loan is still not fully reimbursed, then the Loan will be renewed under the conditions stated in said notice, and this Loan Offer will be
deemed to be amended accordingly. 

  

	 	9.4	It is however understood and agreed that under no circumstance, will the term, following the renewal of the Loan, exceed the total of the amortization period and any moratorium period, if applicable. 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			
			UNOFFICIAL TRANSLATION		 Page
 5
 of 7
			
			LOAN OFFER		
					
	File: D139734				
	Company: E021661				
					
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 
  

	10.	SECURITY INTERESTS 

  

	 	10.1.	In order to provide a specific continuing guarantee of the fulfillment of all of the obligations of the Company vis-à-vis IQ under the terms hereof and in order to guarantee the execution of all other future and
current direct and indirect obligations towards IQ, the Company must: 

  

	 	10.1.1.	Consent to granting IQ a principal hypothec of two million dollars ($2,000,000) and an additional hypothec of four hundred thousand dollars ($400,000) charging all of its current and future tangible, intangible and
movable property; 

 Provided that the said hypothec is subject to all hypothecs already registered as of July 22, 2014.

  

	 	10.1.2	Send IQ an irrevocable letter of credit for an amount equal to the balance of the Loan at that moment, on terms and conditions satisfactory to IQ, in the event that any of the letters of credit issued by Montrovest B.V.
for the Project are cancelled. 

  

	 	10.1.3	Subscribe, to the satisfaction of IQ, to an all-risks insurance policy including a hypothecary clause providing coverage of its assets for the full amount of the Loan, thereby designating IQ as an additional insured.

  

	 	10.2	Subject to the Company not being in default in accordance with this Loan Offer, IQ acknowledges and agrees that: 

  

	 	10.2.1	The Company can dispose of its inventory in the ordinary course of business and allow its bankers a first ranking security interest in said inventory, the proceeds of insurance and accounts receivable to guarantee any
operating credit; 

  

	 	10.2.2	A lender can hold a first ranking moveable hypothec on all new equipment financed through a specific loan (other than provided for in the Project, if applicable) granted to the Company, provided that said hypothec is
used solely to guarantee the loan that finances the acquisition of said equipment; 

  

	 	10.2.3	A lender can hold a first ranking moveable hypothec on the tax credits financed through a specific loan granted to the Company, and for which the lender obtained a guarantee bond from IQ. 

 

	11.	EXAMINATION FEE, MANAGEMENT FEE AND AMENDMENT FEE 

  

	 	11.1	EXAMINATION FEE 

  

	 	11.1.1.	This Loan Offer is subject to the payment of examination-related fees (herein referred to as a “Review Fee”) of one percent (1%) of the amount of the Loan, namely fifty thousand dollars ($20,000).

  

	 	11.1.2.	This Review Fee, the balance of which must be paid to IQ upon acceptance of this Loan Offer, is not reimbursable, partially or fully, except if the Company ceases to implement of the Project for a reason which, in the
opinion of IQ, is out of its control. 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			
			UNOFFICIAL TRANSLATION		 Page
 6
 of 7
			
			LOAN OFFER		
					
	File: D139734				
	Company: E021661				
					
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 
  

	 	11.1.3.	Mere receipt of the Review Fee gives rise to no right in favour of the Company and does not oblige IQ to make any disbursement on the Loan, and these rights and obligations cannot be generated insofar as the terms and
conditions set out in this Loan Offer are not met. 

  

	 	11.2.	 MANAGEMENT FEE 

  

	 	11.2.1.	The Company agrees to pay annually, on the anniversary date of the acceptance hereof by all parties, a management fee of two thousand dollars ($2,000). 

 

	12.	OTHER PROVISIONS 

  

	 	12.1.	Only the French version of this Loan Offer will be deemed official and, in all cases, the latter will prevail over any translation provided therewith. 

 

	 	12.2.	The Company acknowledges that all provisions contained herein and annexed hereto have been freely discussed between the Company and IQ and that the Company has received adequate explanation on the nature and scope of
all provisions thereof. 

  

	13.	INFORMATION FOR DISBURSEMENTS 

  

	 	13.1.	If the Company wishes that IQ proceeds with the disbursements of the Loan by electronic transfer payments, the Company must attach a personalized, original cheque specimen inscribed with the name of the Company.

  

	 	13.2.	IQ will proceed with the disbursements of the Loan by cheque made payable to the Company if the Company fails to provide IQ with a personalized, original cheque specimen inscribed with the name of the Company.

  

	 	13.3.	In the event that an amendment is made relating to the banking information confirmed to IQ, the Company must provide IQ a new cheque specimen original and personalized with the name of the Company.

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			
			UNOFFICIAL TRANSLATION		 Page
 7
 of 7
			
			LOAN OFFER		
					
	File: D139734				
	Company: E021661				
					
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 
 INVESTISSEMENT QUÉBEC 

 

							
	By:		 /s/ Tarak Malad
		Date:		 July 25, 2014

			Signature				
				
			 Tarak Malad

Director of Portfolio
				
			Name of authorized signatory, printed				
				
	By:		 /s/ Bernard Rousseau
		Date:		 July 25, 2014

			Signature				
				
			 Bernard Rousseau

Regional Director

Regional Director of Montreal-Centre
				
			Name of authorized signatory, printed				

 ACCEPTANCE OF THE COMPANY 

After having acknowledged the terms and conditions described herein and in the annexes, we accept this Loan Offer and, we hereby attach a cheque of twenty
thousand dollars ($20,000) in payment of any Review Fee that is due. 
 We also include a duly completed and signed annex entitled “Pre-authorized
debit” in order to reimburse any amount that is due pursuant to this Loan Offer and any subsequent modifications thereto, if any. 
 BIRKS GROUP
INC. 
  

							
	By:		 /s/ Marco Pasteris
		Date:		 July 25, 2014

			Signature				
				
			 Marco Pasteris
				
			Name of authorized signatory, printed				

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			LOAN OFFER		
			
	File: D139734				
	Company: E021661				
	
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 
 ANNEX A 

GENERAL TERMS AND CONDITIONS OF THE LOAN

	1.	DEFINITIONS 

 For the purposes of this Loan Offer, the following expressions have been defined hereafter
unless the context requires a different meaning: 
 “Adjusted net worth” refers to the amounts in the balance sheet of the Company that reflect
(a) the shareholder’s equity, (b) the subordinated debt, if applicable, for the total payment of other debts, (c) the loans granted to the Company by entities or affiliated companies and that have been postponed for the term of
the Loan, (d) non-refundable subsidies from the federal, Quebec or municipal governments recorded as liabilities, (e) any future tax liability, and (f) non-redeemable preferred shares recorded as liabilities. Excluded from the
Adjusted net worth are reported fees, future tax equity, advances made by the Company to entities or companies, whether affiliated or not, to its shareholders, and employees, as well as assets that are unnecessary, superfluous or not related to
operations; 
 “Debt coverage ratio”, in accordance with the corporate balance sheet of the Company, refers to the EBITDA minus the sum of
dividends, buybacks and advances made to shareholders or related corporations, the total divided by the sum of the interest expenses and SPLTD paid within the fiscal year; 

“EBITDA” refers to the earnings before interest, tax, depreciation and amortization; 

“Eligible expenditure” refers to the expenses specified in Annex B herein; 

“Event of default” refers to a default of the terms described in Article 6 of this Annex under the heading “Event of Default”;

 “Fixed-charge coverage ratio”, in accordance with the consolidated balance sheet of the Company,
refers to the sum of EBITDA and new contributions of shareholders minus the sum of dividends, advances made to shareholders or related corporations and non-financed capital assets, the total divided by the sum of interest expenses and SPLTD; 

“Long-term debt” refers to the amount of financial obligations that the Company is not usually required to pay during the current fiscal year and
which appears in the long-term Liabilities section of its balance sheet other than loan granted to the Company by entities or affiliated companies, and that have been postponed for the term of the loan; 

“Long-term debt to Adjusted net worth ratio”, in accordance with the balance sheet of the Company, refers to the long-term liability minus the sum
of long-term tax liability and subordinated debt, the total divided by the Adjusted net worth; 
 “Material change” refers to all changes or
modifications, whether it be an increase or a decrease which in the opinion of IQ could significantly, negatively affect the completion of the Project or a Significant Component thereof; 

“Net sales” refers to gross sales minus returns, rebates, and cash discounts offered by the Company to its clients; 

“Prime rate” refers to the prime rate used by the majority of six (6) federally chartered banks selected by IQ, expressed on a yearly basis.
This rate is reviewed once a year and is therefore likely to vary weekly; 

 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			LOAN OFFER		
					
	File: D139734				
	Company: E021661				
					
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 

 “Significant component” refers to the legal existence of the Company, its financial situation, the
results of operations, its ability to operate, hold its assets and perform all its general obligations or on the terms of any credit or security agreement that it is a party to; 

“SPLTD” refers to the short term portion of a long-term debt; 

“Term” refers to the initial term or any subsequent renewal; 

“Total debt to Adjusted net worth ratio”, in accordance with the balance sheet of the Company, refers to the total liability minus the sum of future
long-term tax liabilities and subordinated debt, the total divided by the Adjusted net worth; 
 “Working capital ratio”, in accordance with the
balance sheet of the Company, refers to the short-term equity, divided by the short-term liability. 
  

	2.	INTEREST 

  

	 	2.1.	As of the final disbursement of the Loan, the Company will have the option to request from IQ, in writing, to change the Variable rate in respect of the Loan to the fixed interest rate effective at IQ at that time.

 If the Company requests that IQ change the Prime rate applied to the Loan to a fixed rate, it accepts that the rate will
be the one applicable at the time of the conversion, provided that the said rate has not increased since the request to convert. Should the opposite occur, the Company will be granted a delay of five (5) days, commencing on the date it has been
informed by IQ of the new effective fixed rate to accept or turn down in writing that said rate.

 IQ reserves the right to a maximum time limit of one (1) month to convert the Variable
rate to the fixed rate and such, provided that the funds at the fixed rate are available to IQ on acceptable terms. 
  

	 	2.2.	The Company accepts any and all variation of the Prime rate that IQ may determine from time to time and for which IQ will keep track of in calculating any interest payable on any amount due herein. 

 

	 	2.3.	All account statements sent to the Company by IQ will constitute irrefutable proof of the accuracy of the calculation, unless the company advises IQ of the contrary within ten (10) days of receipt of any account
statement. 

  

	 	2.4.	All outstanding payments in virtue of the agreement herein will bear interest as of the said date at the rate stipulated in this Loan Offer, without notice or formal demand. 

 

	 	2.5.	All outstanding unpaid interest will bear interest as of the said date at the rate stipulated in this Loan Offer, without notice or formal demand. 

 

	3.	PREPAYMENT 

  

	 	3.1.	The Company can reimburse in whole or in part the Loan in the form of prepayment, at any time and without notice, in the following manner: 

 

	 	3.1.1.	 If the Loan bears interest at the Variable rate, by paying, an indemnity equal to three (3) months of interest on the

 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			LOAN OFFER		
			
	File: D139734				
	Company: E021661				
	
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 

	 	
amount reimbursed in the form of a prepayment, and such, at the rate applicable to the Loan. 

  

	 	3.1.2.	If the Loan bears interest at the fixed rate, by paying an indemnity on the amount of the prepayment which is the higher of: 

  

	 	3.1.2.1.	Three (3) months interest at the rate applicable to the Loan; 

  

	 	3.1.2.2.	The interest rate differential applicable on the remaining Term equal to the difference between the interest rate applicable to the Loan and the interest rate applicable to Quebec bonds with a term equivalent to the
remaining Term, discounted to the interest rate applicable to Canada bonds with a term equal to the remaining Term on the Loan. 

  

	 	3.1.3.	However, the indemnity shall not exceed the amount of interest payable as of the date of the prepayment until the end date of the Term. 

 

	 	3.2.	Provided that the Company is not in default of this Offer, the Company can reimburse an amount of up to fifteen percent (15%) of the Loan balance without penalty in the ten (10) days before or after the
anniversary date of the acceptance of this Loan Offer. If the Company does not proceed with said annual reimbursement, the respective amount cannot be carried forward to the next year.

	 	3.3.	Any reimbursement of capital made in accordance with the previous paragraph will reduce the reimbursements provided for in this Loan Offer, starting with the payments which are due the latest. 

 

	4.	ELECTRONIC TRANSFERS 

  

	 	4.1.	The disbursement of the Loan can be made by IQ directly to the Company’s bank account, if IQ has obtained an original, personalized void cheque. However, IQ reserves the right to disburse the Loan by means of a
cheque if it deems this method of disbursement is preferable in the circumstances. 

  

	 	4.2.	The Company hereby authorizes IQ to effect manual or electronic debits from its bank account of all payments the Company must make to IQ as provided herein. To that effect, the Company hereby authorizes the bank or
financial institution with which it does business to honour the debits made by IQ, and accepts to complete and sign the annex entitled “Pre-authorized Automatic Debit” attached hereto. 

 

	 	4.3.	IQ will send to the Company, in advance, a debit note comprising any and all information related to the payments to be made by the Company. 

 

	 	4.4.	 The Company commits to renewing the aforementioned authorization if it changes bank or financial institution before the Loan is fully reimbursed or as
long as the Company remains indebted to IQ in connection with 

 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			LOAN OFFER		
			
	File: D139734				
	Company: E021661				
	
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 

	 	
all payments owed hereto and to inform IQ of this change by providing it with a new annex entitled Pre-Authorized Automatic debit”, duly completed and signed. 

 

	 	4.5.	The Company agrees that the reimbursement of any and all amounts owed in accordance with this Loan Offer shall be made by way of cheque should IQ deem this method of payment preferable in the circumstances.

  

	5.	GENERAL UNDERTAKINGS BY THE COMPANY 

 On and with effect from the date of acceptance of the said Loan
Offer and for the total duration of the Loan, the Company undertakes to: 
  

	 	5.1.	Upon IQ’s request, provide its audited financial statements, its semi-annual financial statements, the financial statements of its subsidiaries and of any surety and, if applicable, its consolidated financial
statements or any other financial statements, audited or not, requested by IQ within the delay requested, but in accordance with securities legislation and related regulations; 

 

	 	5.2.	provide annual financial forecasts along with any working hypothesis within ninety (90) days of the start of each fiscal year; 

  

	 	5.3.	not continue its corporate existence under a law other than its incorporating act; 

 

	 	5.4.	transact at arms-length with all persons, or as pertains to related person, in accordance with relevant securities legislation and related regulations; 

 

	 	5.5.	not consent to any loans, advances or any other form of financial aid to its shareholders, directors, officers or affiliated companies (with the exception of its wholly-owned subsidiaries), nor make any investments, nor
grant any security nor make any transactions outside the normal course of business or in contravention of industry standards; 

  

	 	5.6.	not merge with any third parties; 

  

	 	5.7.	not move a substantial portion of its business activities outside of the province of Quebec; 

  

	 	5.8.	ensure that there is no change in the ultimate control of the Company; 

  

	 	    	 “Control” means the holding of shares constituting a number of votes sufficient to elect a majority of the Company’s directors.
“Ultimate Control” means the holding of said shares by one or more individuals granting control to the Company by way of one or several corporate entities that are shareholders of each other or the Company. In the event of the death of a
shareholder having ultimate control of the Company, the transfer of shares from the deceased shareholder to his heirs is not deemed to constitute a change in the ultimate control of the Company,

 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			LOAN OFFER		
			
	File: D139734				
	Company: E021661				
	
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 

	 	
provided that said control remains with the legal heirs of the deceased shareholder. 

  

	 	5.9.	insure and maintain all-risks insurance coverage for the assets, for their replacement value, or subscribe to and maintain in force any and all insurance coverage thereof required by IQ and provide upon request copies
of the insurance policies thereby subscribed to and any renewals. In the event that the Company is in default of respecting this undertaking, IQ reserves the right to rectify the situation, at the cost of the Company, and such, without prejudice to
the exercise of any other rights in its favour; 

  

	 	5.10.	not hypothecate, sell or dispose in any way whatsoever the majority of its assets without prior written consent from IQ, except in the ordinary course of business and except with regard to what is expressly permitted
herein; 

  

	 	5.11.	disclose without delay to IQ any litigation or proceedings in a court of law or judicial tribunal, commission or government agency in which it is a party and in which its assets could significantly be affected;

  

	 	5.12.	Conform at all times with the laws to which it is subject in Quebec and more particularly, but without limiting the generality of the foregoing, standards relating to environmental protection, employment, and human
rights; 

	 	5.13.	adopt at all times sociable conduct and responsible policy; 

  

	 	5.14.	If in the opinion of IQ in its sole discretion acting reasonably, the financial situation of the Company deteriorates in a significant way, allow IQ (i) to designate one of its representatives as an observer on the
Company’s Board of Directors, or (ii) to ask the Company to create a management committee; 

  

	 	5.15.	maintain its operations in the ordinary course of business; 

  

	 	5.16.	make no significant changes to the Project without the prior written consent of IQ. If the actual cost of the Project surpasses the planned total, the Company shall provide or do the necessary to make sure its
shareholders provide the necessary funds to cover any and all amounts exceeding the planned amounts, and such, in an manner that IQ deems satisfactory or acting in a reasonable practicable, before the balance of the Loan is disbursed. If the actual
costs by the Company in connection with the Project are lower than the total expenses prescribed under the heading “Project”, IQ reserves the right to decrease the amount of the Loan proportionately; 

 

	 	5.17.	Throughout the Term of the Loan delivering to IQ at its request all documents that it may deem to be useful or pertinent;

 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			LOAN OFFER		
			
	File: D139734				
	Company: E021661				
	
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 

 

	 	5.18.	upon request from IQ, providing all certificates or documents that are required in accordance with the legislation in the province of Quebec; 

 

	 	5.19.	not assign or transfer any rights granted to it in accordance with the terms of this Offer without the prior written consent of IQ; 

  

	 	5.20.	pay all expenses related to the preparation and registration, if required, of all documentation necessary to give legal effect to this Loan Offer and any to any amendment thereto; 

 

	 	5.21.	pay all reasonable costs incurred by IQ to exercise its rights in terms of this Loan Offer, including those costs allowing IQ to execute all the obligations of the Company and its sureties, if any, to protect, execute
and preserve all security consented to in guarantee of the Loan or to proceed to an evaluation of the assets of the Company and its sureties, if any, upon request by IQ, including all legal fees, expenses and costs as well as the expenses and fees
of any agent, trustee or other; 

  

	 	5.22.	pay all reasonable costs that are billed by an external consultant, selected by IQ, to advise the latter on all questions related to the Loan; Specifically, the mandate assigned to the external consultant may extend to
the preparation of financial and operational analysis of the Company; the evaluation of the security offered and the elements of intellectual property related to the Project as well as any other question related to the protection of IQ’s
rights; 

	 	5.23.	upon prior notice to the Company, allow any and all representatives of IQ, to enter the Company’s premises during normal working hours to conduct, at IQ’s cost, an examination of the books, physical buildings,
and inventory of the Company and obtain copies of all documents; 

  

	 	5.24.	disclose to IQ without delay any financial aid granted to the Company, in any form whatsoever, by the government of Quebec, its ministries and agencies for the purpose of realizing the Project. 

 

	6.	EVENT OF DEFAULT 

 Notwithstanding any provision to the contrary hereof, and even if the conditions set
forth are respected, IQ reserves the right to, at its discretion, terminate the Loan or any portion of the Loan not yet disbursed by the latter or to defer the disbursement and terminate the moratorium on capital, where applicable, and the Company
undertakes to repay, upon demand, in part or in full, the sums disbursed on the Loan, with interest, fees and accessory charges, should the following occur: 
  

	 	6.1.	if the Company interrupts or abandons the Project in whole or in part; 

  

	 	6.2.	 if the Company or surety assigns its property, is under order of sequestration in virtue of the Bankruptcy and Insolvency Act, makes a proposal to its
creditors or falls into bankruptcy in virtue of said Act, or if or a surety it has been ordered to liquidate its assets in virtue of the rules for liquidation provided for in the Business Corporations Act or

 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			LOAN OFFER		
			
	File: D139734				
	Company: E021661				
	
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 

	 	
any other law with the same effect, or if it avails itself of the provisions set forth in the Companies’ Creditor Arrangement Act; 

 

	 	6.3.	if the Company or a surety is insolvent or about to become insolvent or if it or a surety fails to maintain its legal existence or if its financial situation or the financial situation of a surety deteriorates so as to
put survival in peril; 

  

	 	6.4.	if the Company is in default with the terms of an agreement or a guaranty related to its loans, namely, without limiting the generality of the foregoing, if it is in default of the terms of any agreement with IQ, or if
the Company is subject to a request for reimbursement of any loan payable upon demand; 

  

	 	6.5.	if there are any changes in the ultimate control of the Company that was not previously authorized in writing by IQ; 

  

	 	6.6.	if, according to IQ and without IQ’s consent, a Material Change arises in the Project or in its financing, in the nature of the Company’s operations or, generally, in the level of risk; 

 

	 	6.7.	if the project-related assets are liquidated or the project-related capital lease is terminated, as applicable; 

  

	 	6.8.	in the event of any significant errors or omissions in a declaration, concealment, false declaration, fraud, or falsification of documents by the Company or a surety; 

 

	 	6.9.	if the Company or its surety fails to comply with any or all of its obligations and conditions stipulated hereof. 

  

	7.	GENERAL PROVISIONS 

  

	 	7.1.	This contract shall be governed by the laws in the Province of Quebec, and in the event of any dispute, the tribunals in Quebec shall have sole competent jurisdiction. In addition, this Loan Offer is subject to the
terms and conditions prescribed in the Act Respecting Investissement Quebec. 

  

	 	7.2.	By accepting this Loan Offer, the Company declares that all information of technical or financial or economic nature provided to IQ on a historical basis is true. 

 

	 	7.3.	 For the purposes of this Offer, all notices must be sent in writing, by certified mail or courier, by fax or hand delivery. Notifications from IQ will
be sent to the Company’s head office, to the attention of the authorized representative who will sign the acceptance of this Loan Offer for and on behalf of the Company. All notifications from the Company or its shareholders will be sent to
Investissement Québec, to its office at 600 De la Gauchetière Ouest, bureau 1500, Montreal, Quebec, H3B 4L8, to the attention of its Corporate Secretary. All notices by personal delivery shall be deemed to have been received on
the day they are delivered; all notices by fax shall be deemed to have been received on the

 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			LOAN OFFER		
			
	File: D139734				
	Company: E021661				
	
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 

	 	
date of transmission if the notice was transmitted on a business day during normal business hours, otherwise the notice shall be deemed to have been received the following business day; all
notices by certified or registered mail shall be deemed to have been received on the third business day following their mailing by the sender. 

  

	 	7.4.	In the event that the Company is governed by new accounting principles, and these new principles have a significant impact on any provision of this Loan Offer regarding any calculation based on the financial statements
of the Company, IQ reserves the right to amend such provision to conform it to its original purpose. 

  

	8.	AVAILABILITY AND CANCELLATION FEES 

  

	 	8.1.	If the Company has not made any request for disbursement within six (6) following the acceptance of this Loan Offer, IQ will be entitled to cancel this Loan Offer. 

 

	 	8.2.	If the Company does not request the disbursement of any amount of the Loan which the Company is entitled to receive within six (6) months following the acceptance of this Loan Offer, IQ is entitled to cancel that
portion of the Loan, as well as any balance. 

  

	 	8.3.	The Company can request that the portion of the Loan to which it is entitled to receive be maintained by paying to IQ an indemnity calculated on a daily basis, as of the aforementioned

	 	
date, at the rate of one point five percent (1.5%) per year, on this portion of the Loan (herein referred to as the “Availability Fee”) and payable on the last day of every month,
starting on the last day of the month following the aforementioned date. 

  

	 	8.4.	The Company reserves the right to request, the cancellation of any balance not yet disbursed and the Availability Fee shall cease to accrue as of the date of IQ`s receipt of the Company`s written notice.

  

	 	8.5.	If the Company requests the cancellation of more than twenty-five percent (25%) of the Loan amount, a cancellation fee of zero point five percent (0.5%) on the cancelled amount will be due and payable on the last
day of the month following said cancellation. 

  

	9.	PUBLIC ANNOUNCEMENT 

  

	 	9.1.	By accepting this Loan Offer, the Company consents to IQ making a public announcement by communicating the principal parameters of the financial assistance granted to the Company, including but not limited to: the name
of the Company, Company’s type of operations, the nature and amount of the financial assistance provided for hereto, as well as the number of Company employees, it being understood that IQ should make reasonable efforts to obtain the
Company’s prior approval of the Company on the content of such announcement. 

 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			LOAN OFFER		
			
	File: D139734				
	Company: E021661				
	
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 

 

	 	9.2.	If the Company wishes to officially announce the Project or proceed to an official inauguration it shall notify IQ fifteen (15) days in advance, so as to allow the latter to participate. 

 

	 	9.3.	IQ consents to the filing of this contract with the securities authorities in accordance with the laws and regulations applicable to the Company.

 

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			LOAN OFFER		
			
	File: D139734				
	Company: E021661				
	
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 
 ANNEX B 

PROJECT AND FINANCING 
  

											
	 Project
	  	Total Costs
(Eligible
Expenses)	 	  	 Financing
	 
	Working Capital	  	$	10,000,000	  	  	Shareholder advances (USD) Letter of credit already issued	  	$	5,000,000	  
		  				  	New financing from Bristol Real Estate SA –capital Lease (USD)	  	$	1,000,000	  
		  				  	12-month capital standstill (CAD) already authorized by IQ	  	$	2,500,000	  
		  				  	IQ Loan	  	$	2,000,000	  
		  	  
	  
	 	  		  	  
	  
	 
	Total:		$	10,000,000	  		Total:		$	10,000,000	  
		  	  
	  
	 	  		  	  
	  
	 

  

  

					
	Initials of the IQ representative				Initials of the Company representative

					
			LOAN OFFER		
			
	File: D139734				
	Company: E021661				
	
	This Loan Offer cancels and supersedes the Loan Offer issued on July 22, 2014

 
 ANNEX D 

POSTPONEMENT OF REPAYMENT OF CLAIM 

(By a corporate body) 
 Re.: Loan in the
amount of two million dollars ($2,000,000) by Investissement Québec (“IQ”) to (the “Company”). 
 MONTROVEST B.V. (the
“Creditor”), a legally constituted corporate body having a place of business at Spoorsingel 11, 2871 TT Schoonhoven, Netherlands, declares: 
  

	 	a)	That it is the Creditor of one million five hundred thousand dollars ($1,500,000) (the “Claim”) due to the Creditor by the Company as a result of loans and advances of money to which the Creditor consented;

  

	 	b)	That it is a shareholder of the Company or has a business relationship with the latter and that the Creditor has an interest that this loan, of which the Creditor has knowledge of the terms and conditions thereof, be
approved by IQ. 

 THEREFORE, in order to permit the Company to comply with the terms and conditions of the said loan, and in consideration of
its declared interest, the Creditor undertakes: 
  

	 	1.	as long as the Company is a debtor of IQ, the Creditor shall not claim or accept the payment of a part or all of the principal of the Claim, nor any interest thereon; however, provided that the Company is not in default
of the terms of the said loan, interest not to exceed eleven percent (11%) per annum net of any tax withholdings may be paid to the Creditor; and it is understood that at all times, the total amount of the Claim plus interest thereon can be
converted to class A voting shares from the Company’s share capital; 

  

	 	2.	to not assign, sell, transport or negotiate the Claim or any of its constituting documents, or the right or interest of the Creditor in the Claim or in said documents. 

The Creditor releases IQ of all liability for any loss that the Creditor could incur arising from the undertakings of the Company as they relate to the Claim
or the undertakings of the Creditor to these terms, including all loss resulting from prescription. 
 This postponement shall be valid notwithstanding any
delay, respite, renewal or discharge that IQ may grant to the Company or to other persons. 
 IN WITNESS WHEREOF, MONTROVEST B.V. has signed at UTRECHT this
July 2014. 
  

							
	F. De Ruiter						
	  
				    (s)		  

	Name of signatory						Signature

  

					
	Initials of the IQ representative				Initials of the Company representativeRenewed and Amended Distribution Agreement

 Exhibit 4.36 
  

	[*]:	THE CONFIDENTIAL MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION 

1 
 RENEWED AND AMENDED
DISTRIBUTION AGREEMENT 
 This Renewed and Amended Distribution Agreement (the “Agreement”) is made as of October 3, 2014 by and between

 Birks Group Inc., a company incorporated under the laws of Canada having its principal office at 1240 Phillips Square, Montreal, Québec
(“Birks”), Mayor’s Jewelers, Inc., a wholly-owned subsidiary of Birks incorporated under the laws of Delaware and having its principal office at 5870 North Hiatus Road, Tamarac, Florida (“Mayors”) 

and 
 Damiani International B.V., a company
incorporated under the laws of The Netherlands having its principal office at Prins Bernhardplein, 200-11097 JB Amsterdam, The Netherlands (“Damiani INT.”),the parent company Damiani S.p.A., a company incorporated under the laws of Italy,
having its principal office at Piazza Damiano Grassi Damiani, 1 – 15078 Valenza (AL) together with Damiani INT. and Damiani S.p.A. direct or indirect subsidiaries and/or affiliates (the “Affiliates”) for the fulfilment of the
obligations of this Agreement (hereinafter collectively referred to as “Damiani”, which expression shall mean and include, unless contrary to the context or meaning thereof, its successors and assigns). 

(Birks and Mayors, together with any respective direct or indirect subsidiaries thereof, are hereafter also jointly referred to as the “B&M
Group” and B&M Group and Damiani collectively referred to as the “Parties”) 
 WHEREAS B&M Group and Damiani
International B.V. (“Damiani INT.”) entered into a Distribution Agreement effective September 26, 2009 and a First Amendment to Distribution Agreement and Settlement effective June 17, 2010 (both such agreements
collectively referred to herein as the “First Distribution Agreement”); 
 WHEREAS Damiani INT. has the ownership of and/or the
title to use the “DAMIANI”, “CALDERONI” “SALVINI”, ALFIERI & ST. JOHN” and “BLISS” trademarks and, inter alia, produces “DAMIANI”, “CALDERONI”, “SALVINI”,
ALFIERI & ST. JOHN” and “BLISS” lines of refined jewelry products, predominantly in gold, platinum, diamonds, gemstones and precious metals, including, without limitation, rings, wedding bands, earrings, bracelets, necklaces,
charms, armlets, pendants, brooches, as well as watches and other luxury products (the “Products”); 
 WHEREAS Damiani sells the
Products under various brands which it owns or has the right to use, including the following brands: 
  

	(a)	the Damiani brand (the “Major Brand”); and 

  

	(b)	the Calderoni, Salvini, Bliss and Alfieri & St. John brands (the “Minor Brands”); 

WHEREAS B&M Group wishes to continue to distribute Products under the Major Brand and the Minor Brands in the Canadian and U.S. markets; 

 WHEREAS B&M Group purchased the Products from Damiani INT. pursuant to the First Distribution
Agreement and some of those Products remain in B&M Group’s inventory (said remaining Products may also be referred to herein specifically as “Existing Products”). A list of Existing Products that is current as of
September 27, 2014 is attached hereto; 
 WHEREAS the First Distribution Agreement shall terminate on October 3, 2014 and the Parties are
interested to renew and amend the said agreement with reference to the distribution in the Canadian and U.S. markets of Products belonging to the Major Brand “Damiani” only (“New Damiani Products”); 

WHEREAS B&M Group wishes to return and replace some of its Existing Products with the refresh of New Damiani Products and purchases of additional
New Damiani Products; 
 WHEREAS Damiani can fulfill its obligations to sell and to deliver New Damiani Products under this Agreement to B&M
Group directly and/or through its Affiliates; and 
 WHEREAS B&M Group has agreed vis-à-vis Damiani to distribute and sell the New Damiani
Products in its stores pursuant to the terms of this Agreement. 
 NOW THEREFORE, the above recitals together with the Schedules hereto being
incorporated into and forming integral and essential part of this Agreement, in consideration of the mutual agreements hereinafter set forth, the parties hereto agree as follows: 

 

					
	Section 1		Existing Products
			
			1.1		B&M Group shall mutually agree with Damiani which of the Existing Products shall be sold in its store locations as set out in Schedule ‘A’ attached hereto (“Schedule ‘A’ Stores”), and which
of its Existing Products shall be sold in its store locations as set out in Schedule ‘B’ attached hereto (“Schedule ‘B’ Stores”). The Parties agree to meet within 15 days from the signature of this Agreement to
mutually select the Existing Products to be sold in “A” and “B” Stores.
			
			1.2		B&M Group shall have the right to exchange the Existing Products (with the exception of the purchases of Products made by B&M Group with the express clause of “not return”, unless otherwise agreed with Damiani) up
to a maximum Cost Value (as defined below) of two million US dollars (US$2,000,000), with New Damiani Products selected by B&M Group together with Damiani (the “Refreshed Products”). The Parties agree that the selection of the whole
value of Existing Products to be exchanged (the “Returned Products”) shall be made by B&M Group together with Damiani within 15 days from the signature of the present Agreement, and that the selection of the whole value of the
Refreshed Products shall be made by B&M Group together with Damiani within 30 days from the signature of the present Agreement. Damiani agrees to exchange the products requested by B&M Group within 30 days from the selection of the Refreshed
Products. B&M Group will return the Products for the same Cost Value of the Refreshed Products immediately upon receipt of the shipment of the Refreshed Products from Damiani and Damiani authorizes B&M Group to provide
the

  
 - 2 - 

					
					Returned Products to Damiani’s designated third party agent. The Parties agree that the return and the exchange will take place within the same fiscal year, provided that the request to return or exchange products is made
prior to 90 days before the end of such fiscal year. All Existing Products that are returned and exchanged for Refreshed Products shall be delivered free and clear of all liens granted in favour of third parties, in good and saleable condition and
in accordance with the quality standards in which the Existing Products were accepted by B&M Group. [*].
			
			1.3		The Refreshed Products shall not be returned and exchanged for other Refreshed Products.
		
	Section 2		Replenishment of Schedule ‘A’ Stores
			
			2.1		During the Term of this Agreement, B&M Group shall replenish the Existing Products [*] as provided in this Section 2.
			
			2.2		[*].
			
			2.3		B&M Group shall make best efforts to maintain a combined total annualized average inventory of [*] (“Inventory”) in [*] accordance with Schedule ‘C’, attached hereto, by way of anticipated quarterly
replenishment in order to maintain the level of Inventory as determined by B&M Group, on the following schedule:
			
					 •    by no later than January 31, 2015 for the quarterly period ending June 30, 2015;

			
					 •    by no later than April 30, 2015 for the quarterly period ending September 30, 2015;

			
					 •    by no later than July 31, 2015 for the quarterly period ending December 31, 2015;

			
					 •    by no later than November 30, 2015 for the quarterly period ending March 31, 2016;

			
			2.4		Notwithstanding anything to the contrary herein, B&M Group shall have no obligation to purchase New Damiani Products until B&M Group has received and returned a Cost Value (as defined below) of two million US dollars
(US$2,000,000) of Existing Products for Refreshed Products in accordance with section 1.2.
			
			2.5		The price to be paid by B&M Group to Damiani for purchases of New Damiani Products shall be [*] (“Cost Value”).

  
 - 3 - 

					
			
			2.6		B&M Group shall pay for all purchases of New Damiani Products ordered within 60 (sixty) days of its receipt of delivery of the New Damiani Products provided the corresponding invoice from Damiani is received within ten (10) days
of the due date.
			
			2.7		Damiani shall use its best efforts to deliver the New Damiani Products to B&M Group within ninety (90) days from receipt of a written order. B&M Group may cancel the purchase order if, following an additional grace period of
15 days, Damiani has not delivered the New Damiani Products for which an order was placed.
			
			2.8		The Parties agree that the B&M Group orders placed in the previous months with an approximate cost value of [*] and not already delivered by Damiani shall be delivered by Damiani within 15 days from the signature of this
Agreement and B&M Group shall pay Damiani within 90 (ninety) days of B&M Group’s receipt of said orders.
			
			2.9		Following its receipt of the New Damiani Products, B&M Group shall, at agreed upon stores, display the New Damiani Products for sale at Damiani’s suggested U.S. retail prices or Canadian Retail Prices, as the case may be,
or such other price deemed appropriate by B&M Group. The expression “Canadian Retail Prices” in this Agreement means that Canadian retail price suggested by B&M Group to Damiani for each Damiani Product which will be sold in
Canada by B&M Group to its retail customers calculated by applying an estimated currency exchange rate factor to the sum of the US retail price and the Canadian import duty. In the event that there are significant fluctuations either in the US
Dollar / Canadian Dollar exchange rate for an extended period or in the Canadian import duties, B&M Group will suggest new Canadian Retail Prices to Damiani for its approval which shall not be unreasonably withheld.
			
			2.10		The Parties agree to establish an annual business plan (the “Annual Business Plan”) that includes sales goals [*] that will be distributing Products as well the inventory turn objectives, GMROI goals, marketing,
event plans and management (e.g. location) of the Products, and such other goals as the Parties may mutually agree upon.
			
					The first Annual Business Plan under this Agreement, related to the fiscal year ending on March 31, 2015, shall be agreed upon by the Parties within thirty (30) days after the execution of this Agreement, and thereafter for the
subsequent fiscal year, the relevant Annual Business Plan shall be agreed by the Parties by the end of March of each year.
			
					In addition, the Parties shall meet on a quarterly basis to review actual progress against such goals and agree to use their best efforts to achieve these goals. In particular, the Parties agree to use their best efforts to achieve
sales, inventory turn and GMROI goals.

  
 - 4 - 

									
	Section 3		Payment for Existing Products under the First Distribution Agreement
			
			3.1		B&M Group shall make the following payments to Damiani related to the purchase of Existing Products (section 1.3(v) of the First Distribution Agreement) and co-advertising expenses (section 11.16 of the First
Distribution Agreement), in full and final settlement of the obligations that B&M Group may have towards Damiani INT. or Damiani regarding said points 1.3 (v) and 11.16 of the First Distribution Agreement, and Damiani and Damiani INT. hereby
release B&M Group from all claims in relation thereto:
			
					                  [*]
			
			3.2		B&M Group shall make additional annual payments on February 15th, 2015 and February 15th, 2016 (the
“Annual Payments”) for the Existing Products and the Refreshed Products delivered to B&M Group and sold by B&M Group. Each payment will be an amount equal to the greater of:
					
							(a)		the cumulative Cost Value of the Existing and the Refreshed Products sold by B&M Group since the date of the First Distribution Agreement up to the January 31 immediately preceding the applicable payment date, and
					
							(b)		the cumulative minimum annual amounts set forth below up to and including the applicable date,
				
							minus the cumulative Annual Payments made since the date of the First Distribution Agreement.
			
			3.3		The following are the minimum annual amounts and the payment dates:
					
							(i)		US$400,000 on February 15, 2010;
					
							(ii)		US$1 million on February 15, 2011;
					
							(iii)		US$1.1 million on February 15, 2012;
					
							(iv)		US$1.2 million on February 15, 2013;
					
							(v)		US$1.3 million on February 15, 2014;
					
							(vi)		US$500,000 on February 15, 2015;
					
							(vii)		US$500,000 on February 15, 2016.
		
	Section 4		Consignment Products
			
			4.1		Damiani may from time to time provide to B&M Group with New Damiani Products on consignment for special promotional events or other store events that may be mutually agreed upon from time to time by the Parties at
prices and terms which will be mutually agreed upon between the Parties from time to time.

  
 - 5 - 

					
		
	Section 5		Right to Return
			
			5.1		At the termination or expiration of this Agreement, B&M Group shall have the option, in its sole discretion, to return, within sixty (60) days following the termination or expiration of this Agreement, at Damiani’s expense,
up to US$4 million at the actual Cost Value of any unsold Existing Products to Damiani from Damiani NY Location (as defined herein below), free and clear of all Liens and in good and saleable condition and in accordance with the quality standards in
which the Existing Products were accepted by B&M Group, without any further obligation of B&M Group (the “Return Products”). The transfer of the title to the unsold Return Products to Damiani shall occur upon delivery
without any further notice or formality.
			
			5.2		In the event that the Return Products, the Cost Value of which has already been paid to Damiani, are returned by B&M Group to Damiani in accordance with Section 5.1, the Cost Value paid by B&M Group to Damiani for the Return
Products returned shall be reimbursed by Damiani to B&M Group as follows: (i) B&M Group will first offset any such amount against any accounts payable (even if not due yet) owed by B&M Group to Damiani; (ii) if such accounts payable are
insufficient to cover the amount to be reimbursed, then Damiani shall reimburse any remaining amount within ninety (90) days from the date that the Return Products were delivered to Damiani.
			
			5.3		In the event that B&M Group chooses not to return part or all of the Existing Products in accordance with section 5.1 hereof, B&M Group will pay Damiani the Cost Value of such unreturned, unsold and unpaid Products, in
addition to the purchased New Damiani Products at the due dates, within seventy-five (75) days after the termination or expiration of the Agreement.
			
			5.4		For the sake of clarity, B&M Group shall not have the right to return any New Damiani Products (refresh of Existing Products and purchase of additional Products) at the termination of this Agreement.
		
	Section 6		Delivery of Damiani Products
			
			6.1		With respect to the New Damiani Products to be delivered by Damiani to B&M Group pursuant to this Agreement, the Products shall be delivered by Damiani, in accordance with B&M Group’s prior written instructions given at
the time of the purchase order placement to Damiani, to one of the following B&M Group locations: (i) B&M Group distribution facility located at 5870 North Hiatus Road, Tamarac, Florida, or (ii) B&M Group distribution facility
located at 1240 Phillips Square, Montreal, Québec (collectively, the “Distribution Centres”).

  
 - 6 - 

					
			
			6.2		Damiani shall be responsible to arrange for, and to pay all costs, expenses, duties, excise and other taxes, customs and insurance and inspection charges, and other similar charges or fees related to, the transportation, freight and
delivery of all such New Damiani Products delivered by Damiani from Europe to its office or warehouse facility located in the City of New York (“Damiani NY Location”).
			
			6.3		Damiani shall be entitled to be reimbursed by B&M Group for the actual shipping expenses incurred and supported by a corresponding invoice in accordance with shipping standards agreed to by B&M Group that are incurred for
the transportation and delivery of the New Damiani Products from the Damiani NY Location to B&M Group distribution facility located at 5870 North Hiatus Road, Tamarac, Florida.
			
			6.4		Damiani shall be entitled to be reimbursed by B&M Group for the actual shipping expenses incurred and supported by a corresponding invoice in accordance with shipping standards agreed to by B&M Group that are incurred for
the transportation and delivery of the New Damiani Products from the Damiani NY Location to B&M Group distribution facility located at 1240 Phillips Square, Montreal, Québec. However, the Parties expressly agree that the Canadian
import duties and the relevant custom clearances shall be directly borne by B&M Group and at its sole expense.
			
			6.5		Any incremental shipping fees or costs due to expedited deliveries shall be borne by Damiani unless specifically agreed upon by the Parties or further to a specific request of B&M Group.
			
			6.6		Title to the purchased Products and risk of loss of the purchased Products shall pass from Damiani to B&M Group when B&M Group takes possession of the Products at its specified Distribution Centre.
			
			6.7		Upon the delivery in accordance with this Section 6 of any New Damiani Products, B&M Group shall have ten (10) Business Days to inspect such New Damiani Products in accordance with its “Quality Assurance Inspection
Program”. If any of the Products, do not meet the quality standards and specifications of B&M Group’s “Quality Assurance Inspection Program” – a copy of which shall have been provided to Damiani before the signature of
this agreement by B&M Group to Damiani, are damaged, contain a manufacturer’s defect or flaw or are otherwise not fit for resale to B&M Group’s customers, are not in conformity with the samples, specifications or other descriptions
provided by the B&M Group to Damiani, or in the event of a material breach by Damiani of any obligation hereunder or under any purchase order or any warranty, express or implied, any claim by B&M Group or any third party of non-compliance
with applicable laws or regulations (including, without limitation, infringement or alleged infringement of any trademark, copyright or trade name, and/or any claim of unfair competition or interference with contractual relations),
B&M

  
 - 7 - 

					
					Group shall within a reasonable period of time from becoming aware of the event provide a written notice to Damiani of such an event (stating in reasonable detail the nature of the event and shall consult with Damiani with respect
to the event). In the event that the quality standards or specifications are not met, B&M Group may, at its option, return such Product(s). Any and all Products returned to Damiani shall be at Damiani’s sole risk and expense. Damiani shall,
immediately upon return of any such products, provide the B&M Group with a refund of all monies paid by the B&M Group for such products or offset such amount against any sums owing to Damiani or, at Damiani’s option, repair or replace
such products at Damiani’s expense. Furthermore, any additional costs resulting from order discrepancies shall be assumed by Damiani. Damiani acknowledges that receipt and inspection of any Products does not waive any rights or stop the B&M
Group from asserting any rights (including, without limitation, the right to return the products and obtain a refund of all monies paid or offset such amount against sums owing to Damiani), claims or demands based on subsequently discovered defects,
defaults or breaches. In addition, the B&M Group retains its right to pursue all other remedies and damages available to it under the law or in equity and be indemnified in accordance with Section 8.1 hereof. Nothing in this Section 6 shall in
any way restrict or limit the general obligation at law of the B&M Group to mitigate any loss which it may incur as a result of any matter giving rise to any such claim.
			
			6.8		Subject to the provisions of this Agreement, in the event that the Products are not delivered within the delivery schedule required by the B&M Group, and a new delivery schedule is not agreed to, B&M Group shall have the
right to refuse the respective order, in its sole discretion.
		
	Section 7		Representations and Warranties of Damiani
			
			7.1		Damiani represents and warrants to B&M Group that:
		
	a)		Damiani is duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation;
		
	b)		Damiani has the power and authority to enter into and perform its obligations under this Agreement and to grant all rights which it grants hereunder;
		
	c)		the execution of this Agreement by Damiani and the performance by Damiani of its obligations hereunder have been duly authorized by all necessary corporate action on its part. Such execution and performance by Damiani
does not require any action or consent of, any registration with, or notification to, any person, or any action or consent under any laws to which Damiani is subject;
		
	d)		this Agreement constitutes a legal, valid and binding obligation of Damiani, enforceable against it in accordance with its terms;

  
 - 8 - 

					
		
	e)		the rights and obligations of Damiani hereunder are not in conflict with applicable law or with its constating documents or any of its contractual commitments, undertakings or third party agreements;
		
	f)		all Products provided by Damiani to B&M Group will be free from all defects in material and workmanship, considering the handmade nature of the product, and will conform to the quality and packaging standards that
may be provided to Damiani from time to time by B&M Group;
		
	g)		all Products to be delivered by Damiani to B&M Group pursuant to this Agreement shall conform in every manner to B&M Group’s “Quality Assurance Inspection Program” and to the samples, models,
drawings, plans, specifications and any other descriptions made to or received by Damiani or B&M Group as the case may be; and
		
	h)		all Products to be delivered by Damiani to B&M Group pursuant to this Agreement will be of consistent kind and high quality, conform to representations of merchantability and fitness for particular purpose and
conform to all government and regulatory standards of manufacture, specifications and quality.
			
			7.2		B&M Group has specifically relied upon such representations and warranties in entering into this Agreement. Damiani acknowledges that B&M Group is purchasing the Products for resale by B&M Group on its own behalf and,
accordingly, represents and warrants that Damiani’s and all other warranties with respect to the Products are transferable to B&M Group’s ultimate consumer and that all such warranties are completely effective and enforceable by
B&M Group and/or its ultimate consumer. All warranties, both express and implied, shall constitute conditions and survive inspection, acceptance and payment.
			
			7.3		Damiani further warrants that it is the owner of or has the right to use the Products’ Intellectual Property (as defined in Section 13.1 hereof) and that the Products and the Products’ Intellectual Property will not
interfere with any contractual rights or infringe upon any patents and/or copyrights and/or any trademark, trade dress, trade name or similar property right, and Damiani warrants and agrees that all Products delivered to B&M Group pursuant to
this Agreement shall be and remain free and clear of all encumbrances, liens, claims and debts of any nature whatsoever. Damiani warrants that at the time of transfer of the Products to B&M Group, Damiani shall have good and marketable title to
such products free and clear of all encumbrances, hypothecs and charges and that the transfer of such products, where applicable, shall be rightful and shall not be subject to any import quota, restrictions or regulation preventing or forbidding the
importation or sale of the products or any component part thereof. All Products shall be in full compliance with all domestic and foreign customs and other government regulations, including without limitation marking and packaging requirements.
Damiani hereby represents and warrants to B&M Group that all Products purchased from time to time by B&M Group are authentic and genuine as properly marked and represented. Without limitation, such products are accurately and properly
marked, labelled and manufactured by Damiani, and such products are neither counterfeit nor adulterated in any manner and Damiani has the lawful right to sell such products to B&M Group without breaching any third party rights and without any
resale restrictions imposed on B&M Group.

  
 - 9 - 

					
			
			7.4		Damiani will provide any person that purchases a Product at a B&M Group store with its standard warranty with respect to such Product. Damiani will provide B&M Group with copies of Damiani’s written warranty with
respect to each Product so that B&M Group may, on Damiani’s behalf, provide a copy of such written warranty for the benefit of any person that purchases a Product at a B&M Group store.
		
	Section 8		Indemnification by Damiani
			
			8.1		Upon written notice, Damiani shall protect, defend, indemnify and hold harmless B&M Group, its affiliates, officers, employees and agents against all liabilities and damages resulting from threats of actions, actions,
proceedings, suits, claims, liabilities, demands, penalties, fines, costs and expenses (including, without limitation, reasonable attorneys’ fees and costs), or any other cost or loss asserted against, incurred by or imposed upon B&M Group
by reason of any actual or alleged violation or breach by Damiani of any of the warranties, representations, covenants or other obligations of Damiani set forth herein or in any purchase order entered into hereunder or any claim of infringement or
alleged infringement of any copyright, a claim of infringement or alleged infringement of any trademark, trade dress, trade name, brand name, and/or any claim or alleged claim of unfair competition or interference with contractual relations;
provided, however, that no settlement of such threats of action, actions, proceedings, suits, claims, liabilities or demands may be made without the B&M Group’s prior written consent to the terms thereof. Damiani agrees to represent B&M
Group with attorneys reasonably acceptable to B&M Group or B&M Group, at its option, may represent itself and Damiani will promptly reimburse B&M Group for such reasonable expenses as incurred. Damiani’s indemnification shall apply
to recall or seizure of Products whether voluntary or involuntary as requested by any governmental agency, and to the effects of such actions as may be required to assure compliance with all appropriate laws, regulations, rules, guidelines,
ordinances and/or standards governing the importation, safety or labelling of such products. This Section 8.1 shall survive the termination or expiration of this Agreement.
		
	Section 9		Representations and Warranties of B&M Group
			
			9.1		B&M Group represents and warrants to Damiani that:
		
	a)		each of Birks and Mayors is duly incorporated, validly existing and in good standing under the laws of its respective jurisdiction of incorporation;

  
 - 10 - 

					
	b)		B&M Group has the power and authority to enter into and perform its obligations under this Agreement and to grant all rights which it grants hereunder;
		
	c)		the execution of this Agreement by B&M Group and the performance by B&M Group of its obligations hereunder have been duly authorized by all necessary corporate action on its part. Such execution and performance
by B&M Group does not require any action or consent of, any registration with, or notification to, any person, or any action or consent under any laws to which B&M Group is subject;
		
	d)		this Agreement constitutes a legal, valid and binding obligation of B&M Group, enforceable against it in accordance with its terms;
		
	e)		the rights and obligations of B&M Group hereunder are not in conflict with applicable law or with its constating documents or any of its contractual commitments, undertakings or third party agreements; and
		
	f)		Birks and/or Mayors, as the case may be, holds and shall maintain for the whole term of this Agreement, all licenses, permits and governmental or regulatory approvals required in order to sell and distribute the Products
in those jurisdictions in which B&M Group stores are operated. Birks and/or Mayors is/are responsible for obtaining any necessary import licences or permits required for the entry of the Products into Canada or the U.S.A. in case of direct
delivery from Damiani to B&M Group.
		
	Section 10		Indemnification by B&M Group
			
			10.1		Upon written notice, B&M Group shall protect, defend, indemnify and hold harmless Damiani, its affiliates, officers, employees and agents against all liabilities and damages resulting from threats of actions, actions,
proceedings, suits, claims, liabilities, demands, penalties, fines, costs and expenses (including, without limitation, reasonable attorneys’ fees and costs), or any other cost or loss asserted against, incurred by or imposed upon Damiani by
reason of any actual or alleged violation or breach by B&M Group of any of the warranties, representations, covenants or other obligations of B&M Group set forth herein or in any purchase order entered into hereunder; provided, however, that
no settlement of such threats of action, actions, proceedings, suits, claims, liabilities or demands may be made without Damiani’s prior written consent to the terms thereof. B&M Group agrees to represent Damiani with attorneys reasonably
acceptable to Damiani or Damiani, at its option, may represent itself and B&M Group will promptly reimburse Damiani for such reasonable expenses as incurred. This Section 10.1 shall survive the termination or expiration of this
Agreement.

  
 - 11 - 

					
	Section 11		Covenants of the Parties
			
			11.1		During the Term of this Agreement (as defined in Section 14.1) and beyond its termination, B&M Group shall not sell the Products outside of Schedule ‘A‘ Stores and Schedule ‘B‘ Stores.
			
			11.2		During the Term of this Agreement, Damiani undertakes to supply B&M Group with Products and B&M Group shall purchase Products only from Damiani or its Affiliates. It is strictly forbidden for B&M Group to purchase
directly or indirectly Products from other sellers, or to sell Products through sale channels other than its direct stores, during this present Agreement and beyond its termination, without Damiani’s prior express written consent.
			
			11.3		B&M Group shall use its commercially reasonable efforts to: (i) provide priority to the Major Brand (external windows and internal counters) in relation to the other jewelry brands offered in its Schedule ‘A’ Stores,
other than products under the Birks or Van Cleef & Arpels brands and other than the brands represented by “shop-in-shop” concepts in the Schedule ‘A’ Stores, the whole provided that the provision of such priority to the Major
Brand would not jeopardize the B&M Group’s sales or such individual store’s existing business, and (ii) promote and display the New Damiani Products consistent with the B&M Group’s existing display standards in its Schedule
‘A‘ Stores.
			
			11.4		B&M Group shall allow authorized Damiani personnel to take inventory of all Products in B&M Group stores on a semi-annual basis (whether such inventory is on display or is located in a secured area on or off the premises).
B&M Group shall also allow authorized Damiani personnel, at any time upon reasonable prior notice, to access B&M Group’s premises during regular business hours and to consult with B&M Group’s staff pertaining to any purchase or
sale of Products by B&M Group for the purpose of verifying B&M Group’s compliance with the terms of this Agreement.
			
			11.5		Unless otherwise agreed to by Damiani, B&M Group will only resell Products from the premises of a B&M Group store and such resells shall be limited to sales to bona fide and final customers of B&M Group. B&M
Group agrees that it shall not resell Products to other retail dealers, whether or not those dealers are authorized Damiani dealers, or to any buyer other than a bona fide and final customer of B&M Group.
			
			11.6		B&M Group, in addition to the existing Damiani “Corner” in B&M Group’s Calgary store location, shall operate a total of at least two (2) Damiani “Corner” concepts in Canada and two (2) Damiani
“Corner” concepts in the United States, as may be requested by Damiani during the Term, in B&M Group store locations to be mutually agreed by the Parties. The cost of building the Damiani Corners as well as the cost of all associated
fixtures, furniture and equipment (the cost of New Damiani Products is excluded) [*]. Within thirty (30) days after the execution of this Agreement, the Parties shall make best efforts to mutually develop a sales plan and inventory turn target for
the Damiani Corners.

  
 - 12 - 

							
			 	11.7	  		Within thirty (30) days after the execution of this Agreement by the Parties, the Parties shall work together in good faith to develop a detailed marketing plan for the Term of this Agreement. The Parties agree that the said
marketing plan shall be supported by a budget amount as provided below [*]
			
			 	11.8	  		The said marketing plan, as well the related budget, shall include the following:
			
			 	a)	  		Advertising materials.
			
							Notwithstanding the foregoing, advertising materials necessary for the advertising production (such as photos, layouts, etc.) shall be developed and provided by Damiani and approved by B&M Group, or in certain instances,
proposals can be made by B&M Group with the approval of Damiani, provided that production materials will be supplied by Damiani at no cost to B&M Group.
			
			 	b)	  		Marketing plan and expenses.
			
							The marketing plan shall include among other things, advertising, catalogue, direct mail and in-store events which shall be mutually agreed upon on an annual basis, the costs of which shall be shared in accordance with Section 11.7
above. B&M Group will pay for these mutually agreed upon expenses and Damiani shall reimburse B&M Group its share of the expenses within sixty (60) days from receipt of an invoice and supporting documentation from B&M Group for the
incurred expenses or B&M Group may offset any amount to be reimbursed by Damiani against any amounts due to Damiani by B&M Group. The Parties will agree upon those elements of the marketing plan for which the B&M Group will incur the
cost and for which the respective amount will be assumed by Damiani.
			
			 	c)	  		The “SHPP” events (super high profile promotion) which will promote the sale of Major Brand between the months of November and May of each year, will be mutually agreed upon and organized in the stores of B&M Group
where the Major Brand is offered to B&M Group’s retail customers or in the shopping malls where B&M Group stores are located and in the areas close to such stores, if appropriate and allowed by the shopping mall.
			
			 	d)	  		Special events to promote the Major Brand masterpiece collection of products (such collection to be defined by Damiani) will be organized during the whole year with reserved invitation to the top retail customers of B&M Group.
The Parties will agree on the scheduling and budget for each Major Brand masterpiece events.
			
			 	e)	  		 Catalogues.
  

If the Parties mutually agree to promote the sales of the Major Brand through the catalogues of B&M Group, B&M shall give priority visibility to the
Major Brand relative to other jewelry brands except for the Birks brand and the Van Cleef & Arpels brand.

			
			 	11.9	  		In addition to the foregoing, B&M Group undertakes to:
			
			 	a)	  		give to the New Damiani Products in Schedule ‘A‘ Stores a position in internal counters and external windows, when and where appropriate, that will have the

  
 - 13 - 

							
					priority in terms of visibility among other jewellery brands sold by B&M Group, except for products under the Birks brand, the Van Cleef & Arpels brand and other brands represented by “Shop-in-shop”
concepts. The Parties undertake to review and agree upon the possible solutions for the Schedule ‘A‘ Stores on a store by store basis;
			
			b)		provide a commission program to its sales professionals for the sale of New Damiani Products which shall be equal to the applicable commission program for the sale of products under the Birks brand and which is no less
than that offered with respect to any other brands offered by B&M Group and shall be at the sole expense of B&M Group;
			
			c)		in addition to the above, Damiani will have the right but not the obligation to grant at its sole expense to the sale professionals and to the store directors of B&M Group additional incentives that will be agreed
upon by the Parties to increase the sales of New Damiani Products through B&M Group stores (i.e. incentive travels, etc.);
			
			d)		the Parties will work together and agree on the way to include New Damiani Products in the “Client Appreciation events” that B&M Group usually organizes during the month of November of each year in order to
distinguish the New Damiani Products among the other jewellery brands to promote the Christmas sales.
			
			11.10		B&M Group undertakes:
				
					(1)		to market and distribute the Products through its own stores and only to the ultimate retail customers;
				
					(2)		to use its commercially reasonable efforts to promote and display the New Damiani Products in the Schedule ‘A‘ and “B” Stores;
				
					(3)		not to sell the Products by Internet and e-commerce channels or by other direct mail measures, or by door to door selling;
				
					(4)		agree to represent the Products in keeping with its quality image and prestige;
				
					(5)		to diligently safeguard the interests of the Products for the purpose of increasing sales of the Products without compromising B&M Group’s sales or an individual store’s existing or future business;
				
					(6)		to provide a monthly sales report, itemized by product, brand and store, which indicates the value and the quantity of the purchased Products sold and which will be sent to Damiani by B&M Group within 30 days from the end of
each month;
				
					(7)		to assume all risk of loss or damage of any Products which may be provided by Damiani to B&M Group on consignment, unless such loss or damage is caused by defects in such products;

  
 - 14 - 

							
					(8)		to obtain, maintain and provide proof of proper insurance coverage on terms reasonably acceptable to Damiani for any Products which may be provided by Damiani to B&M Group on consignment at B&M Group’s expense and to
name Damiani as an additional insured party in such reasonable amounts not to exceed the Cost Value of such products;
				
					(9)		to disclose to its lenders and creditors that any Products which may be provided by Damiani to B&M Group on consignment are not owned by B&M Group, are owned by Damiani and are held by B&M Group on consignment.
			
			11.11		In order to enable B&M Group to standardize Damiani’s sales techniques and to follow their expansion, so as to supply customers with the best possible service, only if expressly requested by Damiani, B&M
Group undertakes to attend with all its appropriate sale professionals yearly training courses that will be arranged by Damiani with the cooperation of B&M Group, and the expenses for said courses (i.e. trip, travelling expenses, board and
lodging B&M Group’s employees and other related expenses, etc.) shall be borne by Damiani unless otherwise mutually agreed between the Parties.
			
			11.12		All security interests and subordination agreements granted and executed pursuant to the First Distribution Agreement shall continue to be in full force and effect. Each party hereto undertakes to do all reasonable acts
and things and promptly execute and deliver all agreements, documents and instruments reasonably required by the other party in order to carry out the provisions and intent of this Agreement, including the continued effectiveness of the
aforementioned security interest and subordination agreements.
		
	Section 12		Confidentiality
			
			12.1		Both Damiani and B&M Group acknowledge that it may have access to and receive confidential and proprietary information from the other party, including, but not limited to, organizational structure, business plans,
marketing philosophy and objectives, competitive advantages and disadvantages, cost figures, sales or other financial results, vendor names and addresses, and distributor names and addresses. It is agreed that Damiani and B&M Group shall protect
the confidentiality of any information disclosed by the other party and that they each will not disclose such information of the other party, either directly or indirectly, to any third person or entity without the prior written consent of such
other party. This confidentiality covenant has no temporal, geographical or territorial restrictions. Notwithstanding the foregoing, the provisions of this confidentiality provision shall not apply to information: (i) which is in the public
domain other than through a violation of this provision, or (ii) which is required to be disclosed pursuant to the valid order, rule or regulation of an administrative agency or judicial court of competent jurisdiction, provided that the party
obligated to disclose such information shall notify the other party of any disclosure required by law and provide such other party with the opportunity to intervene and

  
 - 15 - 

					
					contest such disclosure. The terms of this provision shall survive the expiration or termination of this Agreement and/or the termination of the relationship between Damiani and B&M Group.
			
			12.2		Upon the termination of this Agreement or upon the request of either party, each party shall: (i) return or cause to be returned to the other party all copies of any confidential information of the other party in its possession or
in the possession of its Representatives, and (ii) destroy all copies of any analyses, compilations, studies or other documents prepared by the party or for its use containing, incorporating or reflecting any confidential information of the other
party, in either case, before the close of business 48 hours following the date of the termination of this Agreement or, as the case may be, the request by a party to return all confidential information.
			
			12.3		Either party may only issue press releases concerning this Agreement after receiving approval of the content of such releases by the other party.
		
	Section 13		Intellectual Property
			
			13.1		Damiani confirms that it is the owner of or has the right to use the various intellectual property it uses in connection with the Products, including, without limitation, the Major Brand name, the Minor Brand names, any and all
other brand names of Products (as the case may be), as well as all logos, product names, trade names and trademarks (whether registered or not) used in connection with the Products (collectively, the “Products’ Intellectual
Property”). Damiani hereby grants to B&M Group for the Term of this Agreement (as defined in Section 14.1 hereof) and for a period of six (6) months thereafter, a non-exclusive, royalty-free license to use the Products’
Intellectual Property for the purpose of distributing and selling the Products. Any use of the Products’ Intellectual Property by B&M Group in any approved advertising, marketing campaign or promotional materials shall be accompanied by a
notice that indicates that all Products’ Intellectual Property is the property of Damiani and is being used by B&M Group solely with Damiani’s permission.
			
			13.2		B&M Group expressly agrees that it has no right, title or interest to the Products’ Intellectual Property and that it may only use such Products’ Intellectual Property in accordance with the terms of Section 13.1
hereof.
			
			13.3		Upon the prior written consent of B&M Group, throughout the Term of this Agreement (as defined in Section 14.1 hereof), Damiani or any authorized affiliate of Damiani shall have the non-exclusive right to use the names
“Birks”, “Mayors”, “Birks & Mayors” and “Birks Group” in a corporate presentation or, in agreed to manner by B&M Group, on its corporate letterhead or other such written materials. Any use of the names
“Birks”, “Mayors”, “Birks & Mayors” or “Birks Group” in accordance with the foregoing shall be accompanied by a notice that indicates that all such names are the property of B&M Group and are being
used by Damiani solely with B&M Group’s permission.

  
 - 16 - 

							
			13.4		Damiani expressly agrees that it has no right, title or interest to the names “Birks”, “Mayors”, “Birks & Mayors” or “Birks Group” and that it may only use such names in
accordance with the terms of Section 13.3 hereof.
		
	Section 14		Term of the Agreement.
			
			14.1		The term of this Agreement (the “Term”) shall commence on the date hereof and, unless terminated, extended or renewed in accordance with Sections 14 and 15 hereof, shall terminate on March 31,
2016.
			
			14.2		Within 6 months prior to the expiration of the Term, the Parties shall re-evaluate in good faith the extension or renewal of this Agreement upon such terms and conditions as may be agreed to at such time by the
Parties.
		
	Section 15		Termination of the Agreement. Consequences.
			
			15.1		Material Breach. Either party may terminate this Agreement by notice to the other party if the other party shall fail to cure any material breach of this Agreement within 30 days after notification of such material
breach.
			
			15.2		Insolvency. This Agreement shall terminate automatically without notice to either party if any of Damiani, Birks or Mayors is adjudicated bankrupt, makes a general assignment for the benefit of its creditors, or takes
the benefit of any insolvency, re-organization or other relief act, or if a receiver or trustee is appointed for its property.
			
			15.3		In the event of termination or expiration of the Agreement, nothing shall be owed between the Parties by way of indemnification, except for any indemnification deriving from contract breaches or fraudulent and/ or
negligent actions.
			
			15.4		In case of termination or expiration of the Agreement, for any reason, B&M Group:
				
					a)		shall cease to use the Damiani’s trademark and any distinctive signage and shall cease to define itself a distributor of Damiani;
				
					b)		shall return to Damiani all documentation, productions, drawings of any nature whatsoever which may have remained in its possession and which pertain to the Products constituting the subject of this Agreement, or to
Damiani;
				
					c)		shall return all promotional and advertising materials in its possession supplied by Damiani;

  
 - 17 - 

							
					d)		in general shall refrain from acting in such a way that third parties may reasonably be induced to believe that the contractual relationship between B&M Group and Damiani is continuing;
				
					e)		shall bind itself not to use any sale method that is not in keeping with the image of prestige and quality concerning the Products, brands and distinctive signs;
				
					f)		B&M Group shall promptly return to Damiani any Products which may have been provided on consignment;
				
					g)		At its sole discretion and within three months from termination or expiration of this Agreement, Damiani shall have the right to buy back from B&M Group all or part of the inventory of the remaining Products not already returned
by B&M Group to Damiani in accordance with Section 5 hereof at the price calculated by discounting the Cost Value of the B&M Group with a percentage of [*]. The price paid by B&M Group to Damiani for such Products bought back by Damiani
shall be reimbursed by Damiani to B&M Group as follows: (i) B&M Group will first offset any such amount against any accounts payable (even if not due yet) owed by B&M Group to Damiani; (ii) if such accounts payable are insufficient to
cover the amount to be reimbursed, then Damiani shall reimburse any remaining amount within ninety (90) days from the date that the Products were delivered to Damiani.
			
			15.5		In case of termination or expiration of the Agreement each Party’s future rights and obligations hereunder shall cease immediately; provided that the termination does not affect (i) a Party’s accrued rights and
incurred obligations as at the date of termination or expiration and (ii) the continued existence and validity of the rights and obligations of the Parties under those clauses which expressly provide for the survival thereof after termination or
expiration of the Agreement and any provisions of this Agreement necessary for the interpretation or enforcement of this Agreement. For greater certainty but without limiting the generality of the foregoing, the provisions of Sections 5, 7, 8, 9,
10, 12, 15, 16 and 17 shall survive the termination or expiration of this Agreement.

  
 - 18 - 

					
	Section 16		Notices		
			
			16.1		Any notice or other communication to be given in connection with this Agreement by one party to the other shall be given in writing and shall be given by registered mail or by facsimile, and if by registered mail or facsimile shall
be addressed to the recipient as follows:

  

					
	        If to Damiani:
		
			Damiani International B.V.
			Prins Bernhardplein
			200-11097 JB Amsterdam
 The Netherlands

		
			Attention:         Legal Department
			Facsimile:        (+41) 919125060
		
			Damiani S.p.A.
			Piazza Damiano Grassi Damiani
			1 – 15078 Valenza (AL)
			ITALY
		
			Attention:         Legal Department
			Facsimile:        (+39) 131929521
	
	        If to B&M Group:
		
			Birks Group Inc.
			1240 Phillips Square
			Montreal, Québec
			H3B 3H4
		
			Attention:         Vice-President, Legal Affairs & Corporate Secretary

Facsimile:        (514) 397-2537

		
			
			16.2		Any notice or other communication is deemed to be delivered and received: (i) if sent by registered mail, on the third next business day, or (ii) if sent by facsimile, on the same business day of the date of confirmation of
transmission by the originating facsimile, or (iii) if given by personal delivery, on the same business day of delivery. For the purposes of this Agreement, “business day” means Monday to Friday, inclusively, exclusion made of any day that
is a statutory holiday in the Province of Québec.
			
			16.3		Either party may change its address for service from time to time by providing a notice in accordance with the foregoing. Any subsequent notice or other communication must thereafter be sent to such party at its changed
address.
		
	Section 17		General Provisions
			
			17.1		Time shall be of the essence of this Agreement.
			
			17.2		The relationship between Damiani and B&M Group is that of independent contractors, and neither party nor its employees, agents or representatives shall in

  
 - 19 - 

					
					any event be construed as the mandatary, principal, agent, partner, joint venturer, franchisor, franchisee or representative of the other. Both are independent contractors acting for their own accounts, and neither is authorized to
make any commitment or representation, express or implied, on the other’s behalf unless authorized to do so by the other party by way of a signed written instrument.
			
			17.3		This Agreement shall enure to the benefit of and shall be binding on and enforceable by the Parties and, where the context so permits, their respective successors and permitted assigns. No assignment by either party of any of its
respective rights and obligations hereunder shall be permitted without the prior written consent of the other party.
			
			17.4		The Parties recognize that either of them may for operating convenience or other reasons use standard printed orders or forms for ordering, purchasing, delivering, acknowledging or accepting products or for other similar purposes.
Notwithstanding the use of such orders or forms, the terms and conditions thereof are hereby waived and shall be considered as having no force and effect to the extent they are inconsistent with the terms set forth in this Agreement.
			
			17.5		B&M Group acknowledges that Damiani is a publicly-traded company listed on the Italian Stock Exchange (MTA) and acknowledges to be aware that the Italian securities laws may prohibit any person and entity who has material,
non-public information concerning Damiani S.p.A. and its subsidiaries from communicating such information to any other person or to use such information to make speculative transactions on Damiani securities. B&M Group acknowledges that the
“DAMIANI Group” adopted a Code of Conduct, declares to know it (“Codice Etico” – Schedule ‘D’) and undertakes to manage its business in compliance with the provisions of said Code of Conduct, provided it does not
conflict with B&M Group’s Code of Conduct or other applicable policies, and laws applicable to B&M Group.
			
			17.6		The terms and conditions of this Agreement are subject to the terms and conditions of the Subordination Agreement entered into on October 29, 2009 among B&M Group, Damiani and B&M Group’s lenders.
			
			17.7		The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision. If any provision of this Agreement is declared by any court of competent jurisdiction to
be illegal, void or unenforceable, all other provisions of this Agreement shall remain in full force and effect.
			
			17.8		Each party shall not be responsible for any failure to perform its obligations under this Agreement due to a superior force or cause (“force majeure”) beyond the reasonable control of such party, including, but not limited
to, sabotage, riot, fire, flood, insurrection, terrorism, war or acts of God.
			
			17.9		No modification of or amendment to this Agreement shall be valid or binding unless set forth in writing and duly executed by Damiani, on the one side, and

  
 - 20 - 

					
					Birks, acting for itself and in the name and on behalf of Mayors, on the other side. No waiver of any breach of any term or provision of this Agreement shall be effective or binding unless made in writing and signed by the party
purporting to give the same and, unless otherwise provided, shall be limited to the specific breach waived. No failure on the part of either party to exercise, and no delay in exercising, any right under this Agreement shall operate as a waiver of
such right. No single or partial exercise of any such right shall preclude any other or further exercise of any such right or the exercise of any other right.
			
			17.10		Each party shall from time to time execute and deliver all such further documents and instruments and do all acts and things as the other party may, either before or after the execution hereof, reasonably require to effectively
carry out or better evidence or perfect the full intent and meaning of this Agreement.
			
			17.11		The Parties agree that invoices from Damiani to B&M Group will be always denominated and paid in US dollars. However, suggested retail prices will be denominated in local currencies of the respective country (USA or
Canada).
			
			17.12		This Agreement constitutes the entire agreement between the Parties with respect to the sale and resale of Damiani’s products and to the subject matter hereof and cancels and supersedes any prior understandings and agreements
between the Parties with respect thereto, including the First Distribution Agreement. Therefore, starting from the date hereof, any inventory of Damiani’s products, either purchased by or held on consignment by B&M Group, shall be subject
to the provisions hereof. There are no representations, warranties, conditions, agreements, undertakings or acknowledgements, express or implied, that form part of or affect this Agreement, or which induced any party to enter into this Agreement or
on which reliance was placed by any party, except as specifically set forth in this Agreement.
			
			17.13		This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. The Parties agree that this Agreement may be
transmitted by telecopier and/or electronic PDF copy and that the reproduction of signatures by telecopier and/or electronic PDF copy will be treated as binding as if originals.
			
			17.14		This Agreement and all sales made pursuant to this Agreement shall be governed by and interpreted and enforced in accordance with the laws of the Province of Québec and the federal laws of Canada applicable therein. The
Parties hereby attorn to the non-exclusive jurisdiction of the courts of the Province of Québec. Damiani irrevocably waives, in connection with any such action or proceeding, any objection, (including without limitation, any objection to
venue or based on the grounds of forum non conveniens), which it may now or hereafter have to the bringing of any such action or proceedings in such jurisdiction. The application of the United Nations Convention for the International Sale of Goods
of April 11, 1980 as may be amended from time to time is expressly excluded.

  
 - 21 - 

					
			17.15		Where a US Dollar amount has to be converted or expressed in another currency, or where its equivalent in another currency has to be determined (or vice versa), the calculation is made at the spot rate announced by the Bank
of Canada at or around noon on the Business Day preceding the relevant date for the relevant currency against US Dollars (or vice versa).
			
			17.16		If a judgment is to be rendered against a Party for an amount owed hereunder and if the judgment is rendered in a currency (“Other Currency”) other than that in which this amount is owed under this Agreement
(“Currency of the Agreement”), such Party must pay, if applicable, at the date of payment of the judgment, an additional amount equal to the excess (i) of the amount owed under this Agreement, expressed into the Other Currency as at the
date of payment of the judgment, over (ii) the amount of the judgment. For the purposes of obtaining the judgment and making the calculation referred to in (i), the exchange rate shall be the average spot rate, on the relevant date, announced by the
Bank of Canada for the Other Currency. Any additional amount owed under this Section 17.16 will constitute a cause of action distinct from the cause of action which gave rise to the judgment, and said judgment shall not constitute res judicata in
that respect.
			
			17.17		The Parties hereto acknowledge that they have expressly required that the present Agreement and all schedules, documents and notices relating thereto be drafted in the English language. Les parties aux présentes
déclarent qu’elles ont expressément exigé que la présente convention et tous les annexes, documents ou avis qui y sont afférents soient rédigés en anglais.

 [Remainder of this page intentionally left blank] 

  
 - 22 - 

 IN WITNESS WHEREOF, the parties have caused their duly authorized representatives to execute this
Agreement as of the date first above written. 
  

			
	DAMIANI INTERNATIONAL B.V.
		
	By:		  

			Authorized Signing Officer
	
	DAMIANI S.p.A.
		
	By:		  

			Authorized Signing Officer
	
	BIRKS GROUP INC.
		
	By:		  

			Authorized Signing Officer
	
	MAYOR’S JEWELERS, INC.
		
	By:		  

			Authorized Signing Officer

  
 - 23 - 

 SCHEDULE ‘A’ STORES 

[*] 

 SCHEDULE ‘B’ STORES 

[*] 

 SCHEDULE ‘C’ 

[*] 

 SCHEDULE ‘D’ 

DAMIANI CODE OF CONDUCT 

  
 - 2 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]