Document:

Warrant to Purchase Common Stock

 Exhibit 10.3 
 NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN
OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 
 STOCKERYALE, INC. 
 WARRANT TO PURCHASE COMMON
STOCK 
 Warrant No.:
                     
 Number of Shares of Common
Stock: 1,000,000 
 Date of Issuance: January 26, 2007 (“Issuance Date”) 
 StockerYale, Inc., a corporation organized under the laws of the Commonwealth of Massachusetts (the “Company”), hereby certifies that,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Smithfield Fiduciary LLC, the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set
forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, upon surrender of this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or replacement
hereof, the “Warrant”), at any time or times on or after the date hereof, but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), one million (1,000,000) fully paid nonassessable shares of Common
Stock (as defined below) (the “Warrant Shares”). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 15. This Warrant is one of the Warrants to purchase Common
Stock (the “SPA Warrants”) issued pursuant to Section 1 of that certain Securities Purchase Agreement, dated as of January 26, 2007 (the “Subscription Date”), by and among the Company and the investor (the
“Buyer”) referred to therein (the “Securities Purchase Agreement”). 
 1. EXERCISE OF WARRANT.

 (a) Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in
Section 1(f)), this Warrant may be exercised by the Holder on any day on or after the date hereof, in whole or in part, by (i) delivery 

 
of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder's election to exercise this
Warrant and (ii) (A) payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in cash or
by wire transfer of immediately available funds or (B) by notifying the Company that this Warrant is being exercised pursuant to a Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required to deliver the original
Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original Warrant and issuance of a new Warrant
evidencing the right to purchase the remaining number of Warrant Shares. On or before the first (1st) Business
Day following the date on which the Company has received each of the Exercise Notice and the Aggregate Exercise Price (or notice of a Cashless Exercise) (the “Exercise Delivery Documents”), the Company shall transmit by facsimile an
acknowledgment of confirmation of receipt of the Exercise Delivery Documents to the Holder and the Company's transfer agent (the “Transfer Agent”). On or before the third (3rd) Business Day following the date on which the Company has received all of the Exercise Delivery Documents (the “Share Delivery Date”),
the Company shall (X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the Holder, credit such aggregate number of Warrant
Shares to which the Holder is entitled pursuant to such exercise to the Holder's or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer Agent is not participating in the DTC
Fast Automated Securities Transfer Program, issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company's share register in the name of the Holder or its designee, for the
number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant
Shares with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder's DTC account or the date of delivery of the certificates evidencing such Warrant Shares, as the case may be. If
this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an
exercise, then the Company shall as soon as practicable and in no event later than three Business Days after any exercise and at its own expense, issue a new Warrant (in accordance with Section 7(d)) representing the right to purchase the
number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the exercise of
this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number. The Company shall pay any and all taxes which may be payable with respect to the issuance and delivery of Warrant Shares upon
exercise of this Warrant. 
 (b) Exercise Price. For purposes of this Warrant, “Exercise Price” means $1.72, subject
to adjustment as provided herein. 
 (c) Company's Failure to Timely Deliver Securities. If the Company shall fail for any reason or
for no reason to issue to the Holder within three (3) Business Days of receipt of the Exercise Delivery Documents, a certificate to the Holder and register such shares 

  

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of Common Stock on the Company's share register or credit the Holder's balance account with DTC for the number of shares of Common Stock to which the Holder
is entitled upon the Holder's exercise hereunder, or if the Company fails to deliver to the Holder a certificate or certificates representing the applicable Warrant Shares within three (3) Trading Days after its obligation to do so under clause
(ii) below, and if on or after such Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of shares of Common Stock issuable upon such exercise or
receipt that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall, within three (3) Business Days after the Holder's request and in the Holder's discretion, either (i) pay cash to the
Holder in an amount equal to the Holder's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company's obligation to deliver such
certificate (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Warrant Shares and pay cash to the Holder in an amount equal to the
excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Closing Bid Price on the date of exercise. 
 (d) Cashless Exercise. Notwithstanding anything contained herein to the contrary, if a Registration Statement (as defined in the Registration Rights Agreement) covering the Warrant Shares that are the subject
of the Exercise Notice (the “Unavailable Warrant Shares”) is not available for the resale of such Unavailable Warrant Shares, the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making
the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to
the following formula (a “Cashless Exercise”): 
  

					
	Net Number =	  	(A x B) - (A x C)	  	
		  	B	  	
	
	For purposes of the foregoing formula:

  

			
	A= 	 	the total number of shares with respect to which this Warrant is then being exercised.
		
	B= 	 	the Closing Sale Price of the shares of Common Stock (as reported by Bloomberg) on the date immediately preceding the date of the Exercise Notice.
		
	C= 	 	the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

 (e) Disputes. In the case of a dispute as to the determination of the Exercise Price or
the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 12. 
  

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 (f) Limitations on Exercises  
 (i) Principal Market Regulation. The Company shall not be obligated to issue any shares of Common Stock upon exercise of this Warrant if the
issuance of such shares of Common Stock would exceed that number of shares of Common Stock which the Company may issue upon exercise of the SPA Warrants without breaching the Company's obligations under the rules or regulations of the Principal
Market (the “Exchange Cap”), except that such limitation shall not apply in the event that the Company (A) obtains the approval of its stockholders as required by the applicable rules of the Principal Market for issuances of
Common Stock in excess of such amount or (B) obtains a written opinion from outside counsel to the Company that such approval is not required, which opinion shall be reasonably satisfactory to the holders of the SPA Warrants representing at
least a majority of the Warrant Shares underlying the SPA Warrants then outstanding. Unless such approval or written opinion is obtained, the Buyer shall not be issued, upon exercise of the SPA Warrants, shares of Common Stock in an amount greater
than the product of the Exchange Cap. In the event that the Buyer shall sell or otherwise transfer any of the SPA Warrants, the transferee shall be allocated a pro rata portion of the Exchange Cap, and the restrictions of the prior sentence shall
apply to such transferee with respect to the portion of the Exchange Cap allocated to such transferee. 
 (ii) Beneficial Ownership.
The Company shall not effect the exercise of this Warrant, and the Holder shall not have the right to exercise this Warrant, to the extent that after giving effect to such exercise, such Person (together with such Person's affiliates) would
beneficially own in excess of 4.99% of the shares of Common Stock outstanding immediately after giving effect to such exercise (the “Maximum Percentage”). For purposes of the foregoing sentence, the aggregate number of shares of
Common Stock beneficially owned by such Person and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude
shares of Common Stock which would be issuable upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially owned by such Person and its affiliates and (ii) exercise or conversion of the unexercised or unconverted
portion of any other securities of the Company beneficially owned by such Person and its affiliates (including, without limitation, any convertible notes or convertible preferred stock or warrants) subject to a limitation on conversion or exercise
analogous to the limitation contained herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended. For purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding 

  

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shares of Common Stock as reflected in (1) the Company's most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the
Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. For
any reason at any time, upon the written or oral request of the Holder, the Company shall within one Business Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of
outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including the SPA Warrants, by the Holder and its affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. By written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% specified in such notice; provided that (i) any
such increase will not be effective until the sixty-first (61st) day after such notice is delivered to the
Company, and (ii) any such increase or decrease will apply only to the Holder and not to any other holder of SPA Warrants. 
 (g)
Insufficient Authorized Shares. If at any time while any of the Warrants remain outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance
upon exercise of the Warrants at least a number of shares of Common Stock equal to the number of shares of Common Stock (the “Required Reserve Amount”) as shall from time to time be necessary to effect the exercise of all of the Warrants
then outstanding (an “Authorized Share Failure”), then the Company shall immediately use its reasonable best efforts to take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient to
allow the Company to reserve the Required Reserve Amount for the Warrants then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no
event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with
such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders' approval of such increase in authorized shares of Common Stock and to cause its board of directors to
recommend to the stockholders that they approve such proposal. 
 2. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES UPON
SUBDIVISION OR COMBINATION OF COMMON STOCK. If the Company at any time on or after the Subscription Date subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock
into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the
Subscription Date combines (by combination, reverse stock split or otherwise) one or more classes of its 

  

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outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be
proportionately increased and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 2(a) shall become effective at the close of business on the date the subdivision or combination becomes effective.

 3. RIGHTS UPON DISTRIBUTION OF ASSETS. If the Company shall declare or make any dividend or other distribution of its assets (or
rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off,
reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case: 
 (a) any Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders of shares of Common
Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such record date, to a price determined by multiplying such Exercise Price by a fraction of which (i) the numerator shall be the Closing Bid
Price of the shares of Common Stock on the Trading Day immediately preceding such record date minus the value of the Distribution (as determined in good faith by the Company's Board of Directors) applicable to one share of shares of Common Stock,
and (ii) the denominator shall be the Closing Bid Price of the shares of Common Stock on the Trading Day immediately preceding such record date; and 
 (b) the number of Warrant Shares shall be increased to a number of shares equal to the number of shares of Common Stock obtainable immediately prior to the close of business on the record date fixed for the
determination of holders of shares of Common Stock entitled to receive the Distribution multiplied by the reciprocal of the fraction set forth in the immediately preceding paragraph (a); provided that in the event that the Distribution is of shares
of Common Stock (or common stock) (“Other Shares of Common Stock”) of a company whose common shares are traded on a national securities exchange or a national automated quotation system, then the Holder may elect to receive a
warrant to purchase Other Shares of Common Stock in lieu of an increase in the number of Warrant Shares, the terms of which shall be identical to those of this Warrant, except that such warrant shall be exercisable into the number of shares of Other
Shares of Common Stock that would have been payable to the Holder pursuant to the Distribution had the Holder exercised this Warrant immediately prior to such record date and with an aggregate exercise price equal to the product of the amount by
which the exercise price of this Warrant was decreased with respect to the Distribution pursuant to the terms of the immediately preceding paragraph (a) and the number of Warrant Shares calculated in accordance with the first part of this
paragraph (b). 
 4. PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS. 
 (a) Purchase Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will 

  

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be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) immediately before the date on which a record is taken for the grant, issuance or
sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights. 
 (b) Fundamental Transactions. (1) The Company shall not enter into or be party to a Fundamental Transaction unless (x) the Successor
Entity assumes in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section (4)(b)(1) pursuant to written agreements in form and substance satisfactory
to the Required Holders and approved by the Required Holders prior to such Fundamental Transaction, including agreements to deliver to each holder of Warrants in exchange for such Warrants a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant, including, without limitation, an adjusted exercise price equal to the value for the shares of Common Stock reflected by the terms of such Fundamental Transaction, and
exercisable for a corresponding number of shares of capital stock of the Successor Entity equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this
Warrant) prior to such Fundamental Transaction, and reasonably satisfactory to the Required Holders and (y) the Successor Entity (including its Parent Entity) is a publicly traded corporation whose Common Stock is quoted on or listed for
trading on an Eligible Market. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant
referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such
Successor Entity had been named as the Company herein. Upon consummation of such Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the
consummation of the Fundamental Transaction, in lieu of the shares of the Common Stock (or other securities, cash, assets or other property) issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of publicly
traded Common Stock (or their equivalent) of the Successor Entity, as adjusted in accordance with the provisions of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental
Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate
provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of such Fundamental Transaction but prior to the Expiration Date, in lieu of (x) the shares of the
Common Stock (or other securities, cash, assets or other property) purchasable upon the exercise of the Warrant prior to such Fundamental Transaction and (y) the Common Stock of the Successor Entity, such shares of stock, securities, cash,
assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had the Warrant been exercised immediately
prior to such Fundamental Transaction. Provision made pursuant to the preceding sentence shall be in a form 

  

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and substance reasonably satisfactory to the Required Holders. The provisions of this Section shall apply similarly and equally to each such successive
Fundamental Transactions and Corporate Events and shall be applied without regard to any limitations on the exercise of this Warrant. 
 (2)
Notwithstanding the provisions of Section 4(b)(1), the Company shall have the right to require that Holder waive the requirements of Section 4(b)(1) (the “Waiver”) in exchange for a payment of cash in an amount equal to
the value of the remaining unexercised portion of this Warrant on the date of such Fundamental Transaction, which value shall be determined by use of the Black Scholes Option Pricing Model, using a volatility equal to the 100 day average historical
price volatility prior to the date of the public announcement of such Fundamental Transaction, with the Waiver becoming effective, and this Warrant cancelled, concurrently with such payment of such cash amount (the “Fundamental Transaction
Amount”) to the Holder on the closing date of the Fundamental Transaction. Notwithstanding anything to the contrary in this Section 4(b), but subject to Section 1(f), until such time that the Holder receives the Fundamental
Transaction Amount (at which point this Warrant shall be cancelled), this Warrant may be exercised, in whole or in part, by the Holder (x) prior to the closing date of the Fundamental Transaction, into Common Stock pursuant to Section 1,
or (y) upon (which may be expressly conditioned upon the closing of the Fundamental Transaction) or after the closing date of the Fundamental Transaction, into any such shares of stock, securities, cash, assets or any other property whatsoever
(including warrants or other purchase or subscription rights, if applicable) which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had the Warrant been exercised immediately prior to such closing
date of the Fundamental Transaction. 
 5. NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by
amendment of its Articles of Organization, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the
generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be
necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as any of the SPA Warrants are outstanding, take
all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the SPA Warrants, the number of shares of Common Stock as shall from time to time be
necessary to effect the exercise of the SPA Warrants then outstanding (without regard to any limitations on exercise). 
 6. WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person's capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share
capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person's capacity as the Holder of this 

  

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Warrant, any of the rights of a shareholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any
reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares
which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this
Warrant or otherwise) or as a shareholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices
and other information given to the shareholders of the Company generally, contemporaneously with the giving thereof to the shareholders. 
 7. REISSUANCE OF WARRANTS. 
 (a) Transfer of Warrant. If this Warrant is to be transferred, the Holder shall
surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase
the number of Warrant Shares being transferred by the Holder and, if less then the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the
right to purchase the number of Warrant Shares not being transferred. 
 (b) Lost, Stolen or Mutilated Warrant. Upon receipt by the
Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary
form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then
underlying this Warrant. 
 (c) Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the
Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new
Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no Warrants for fractional shares of Common Stock shall be given. 
 (d) Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant
to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of
Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

  

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 8. NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise provided
herein, such notice shall be given in accordance with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable
detail a description of such action and the reason therefore. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment of the Exercise Price, setting forth in
reasonable detail, and certifying, the calculation of such adjustment and (ii) at least fifteen days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares
of Common Stock, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining
rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.

 9. AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may
take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the holders of the SPA Warrants representing at least a majority of the shares of Common
Stock underlying the SPA Warrants then outstanding; provided that no such action may increase the exercise price of any SPA Warrant or decrease the number of shares or class of stock obtainable upon exercise of any SPA Warrant without the written
consent of the Holder. No such amendment shall be effective to the extent that it applies to less than all of the holders of the SPA Warrants then outstanding. 
 10. GOVERNING LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall
be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of
any jurisdictions other than the State of New York. 
 11. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted
by the Company and all the Buyer and shall not be construed against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant.

 12. DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the
Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within two Business Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder
and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the

  

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Company shall, within two Business Days submit via facsimile (a) the disputed determination of the Exercise Price to an independent, reputable
investment bank selected by the Company and approved by the Holder or (b) the disputed arithmetic calculation of the Warrant Shares to the Company's independent, outside accountant. The Company shall cause at its expense the investment bank or
the accountant, as the case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later than ten Business Days from the time it receives the disputed determinations or calculations. Such
investment bank's or accountant's determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error. 
 13. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law
or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder right to pursue actual damages for any failure by the Company to comply with the terms of this Warrant.
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach
or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being
required. 
 14. TRANSFER. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company,
except as may otherwise be required by Section 2(f) of the Securities Purchase Agreement. 
 15. CERTAIN DEFINITIONS. For
purposes of this Warrant, the following terms shall have the following meanings: 
 (a) “Bloomberg” means Bloomberg
Financial Markets. 
 (b) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks
in The City of New York are authorized or required by law to remain closed. 
 (c) “Closing Bid Price” and “Closing
Sale Price” means, for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on
an extended hours basis and does not designate the closing bid price or the closing trade price, as the case may be, then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York time, as reported by
Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board
for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for 

  

 - 11 - 

 
such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the
“pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid
Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of
such security, then such dispute shall be resolved pursuant to Section 12. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable
calculation period. 
 (d) “Common Stock” means (i) the Company's shares of Common Stock, par value $0.001 per share,
and (ii) any capital stock into which such Common Stock shall have been changed or any capital stock resulting from a reclassification of such Common Stock. 
 (e) “Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock. 
 (f) “Eligible Market” means the Principal Market, The New York Stock Exchange, Inc., The NASDAQ Global Select Market or the American
Stock Exchange. 
 (g) “Expiration Date” means the date ten (10) years from the Closing Date or, if such date falls on
a day other than a Business Day or on which trading does not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday. 
 (h) “Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the
surviving corporation) another Person, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, or (iii) allow another Person to make a purchase,
tender or exchange offer that is accepted by the holders of more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the Person or Persons making or party to, or associated or affiliated with the
Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of
arrangement) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or
affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), (v) reorganize, recapitalize or reclassify its Common Stock, or (vi) any “person” or “group” (as these
terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power
represented by issued and outstanding Common Stock. 
  

 - 12 - 

 (i) “Options” means any rights, warrants or options to subscribe for or purchase shares
of Common Stock or Convertible Securities. 
 (j) “Parent Entity” of a Person means an entity that, directly or indirectly,
controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market
capitalization as of the date of consummation of the Fundamental Transaction. 
 (k) “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 
 (l) “Principal Market” means The NASDAQ Global Market. 
 (m) “Registration Rights Agreement” means that certain registration rights agreement by and among the Company and the Buyer. 
 (n) “Required Holders” means the holders of the SPA Warrants representing at least a majority of shares of Common Stock underlying the
SPA Warrants then outstanding. 
 (o) “Successor Entity” means the Person (or, if so elected by the Required Holders, the
Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Required Holders, the Parent Entity) with which such Fundamental Transaction shall have been entered into. 
 (p) “Trading Day” means any day on which the Common Stock are traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock are then traded; provided that “Trading Day” shall not include any day on which the Common Stock are
scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in
advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time). 
 [Signature
Page Follows] 
  

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 IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be duly
executed as of the Issuance Date set out above. 
  

			
	STOCKERYALE, INC.
		
	By:	 	 /s/ Mark W. Blodgett

	Name:	 	Mark W. Blodgett
	Title:	 	Chief Executive OfficerAgreement

 Exhibit 10.88 
 AGREEMENT 
 This Agreement (the “Agreement”) is made and entered into as of
January 25, 2007 (the “Effective Date”), by and between Perry Ellis International, Inc., a Florida corporation (the “Seller”) and Falic Fashion Group, LLC, a Florida limited liability company and a wholly owned
subsidiary of Duty Free Americas, Inc. (“Buyer” and together with Seller, the “Parties”). 
 RECITALS

  

	A.	On the date set forth above, Buyer, Seller and Seller’s affiliates (“Licensor”) have entered into that certain license agreement (the “License
Agreement”), pursuant to which Licensor grants to Buyer the sole and exclusive license and authorization during the term of the License Agreement to use the Licensed Marks in the Territory upon, and in connection with and/or in relation to
Licensed Products made by or for Buyer, including without limitation, the right to the sole and exclusive manufacture and distribution of Licensed Products in the Territory. 

  

	B.	Seller wishes to assign and transfer to Buyer all inventory of Licensed Products held by Seller, all of Seller’s know how and experience relating to and in connection with
Licensed Products and certain other assets held by Seller related to the Licensed Products, and Buyer wishes to acquire such rights, title and interest on the terms and conditions specified in detail below. 

  

	C.	Capitalized terms used herein but not defined shall have the meaning ascribed to such terms in the License Agreement. 

 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 1. Transactions. On the terms and subject to the conditions set forth in Section 2 of this Agreement, Seller shall sell,
assign, transfer, convey and deliver to Buyer, or cause to be sold, assigned, transferred, conveyed and delivered to Buyer, and Buyer shall purchase, acquire and accept from Seller all of Seller’s right, title and interest in and to
(i) all non-fulfilled sales orders relating to, or in connection with, Licensed Product as of the date hereof, as identified in Exhibit A attached hereto (the “Sales Orders”), (ii) all non-fulfilled purchase orders
relating to, or in connection with, Licensed Product as of the date hereof, as identified in Exhibit B 

 
attached hereto (the “Purchase Orders”), (iii) the Seller’s know how and experience as of the date hereof relating to and in
connection with Licensed Products and the existing operations of the business relating to and in connection to the Licensed Products, and the names and contact information relating to the Seller’s existing suppliers, fragrance houses,
manufacturers and distributors of Licensed Product set forth on Exhibit E attached hereto (the “Operations”) (all rights, title and interest in (i) Sales Orders, (ii) Purchase Orders, and (iii) Operations, are
hereinafter collectively referred to as the “Assets”), and (iv) all finished goods, raw materials and work-in process inventory of Licensed Products owned by Seller, other than the Excluded Inventory (as defined in
Section 3), and all promotional supplies of Licensed Products owned by Seller (collectively, the “Inventory”). A list of the estimated unit volume and dollar value of the Inventory is attached hereto as Schedule 1. 

2. Total Price; Payment. The aggregate price to be paid by Buyer to Seller consists of (i) forty two million dollars ($42,000,000) for the
Assets (the “Asset Price”); and (ii) approximately twenty one million dollars ($21,000,000) for the Inventory (the “Inventory Price” and, together with the Asset Price, the “Total Price”).
Buyer shall pay the Total Price as follows: 
 (i) on the Effective Date, Buyer shall pay, in immediately available funds, to
an account designated by Seller, the Inventory Price; and 
 (ii) on the Effective Date, Buyer shall pay, in immediately
available funds, to an account designated by Seller, the Asset Price. 
 On the Effective Date, Seller shall execute and deliver a bill of sale and such
other documents reasonably requested in connection with the sale of the Inventory and the Assets. 
 3. Delivery of Inventory.

 (a) On the Effective Date, Seller shall close its books with regard to the Inventory and shall not sell or dispose of Licensed Products
other than as set forth herein. Commencing January 26, 2007 (the “Inventory Transfer Date”), Buyer shall perform a physical count of the Inventory, along with Seller, which physical count shall be performed at the warehouses
owned or used by 

  

 - 2 - 

 
Parlux Fragrances, Inc., the prior licensee of the Licensed Marks (“Prior Licensee”) for the storage of Licensesd Products. From and after
the Effective Date (the “Transition Period”), Seller shall (i) discontinue all sales of Licensed Products and shall not fulfill or permit the Prior Licensee to fulfill any orders for Licensed Products, whether or not included in the
Sales Orders, except for Excluded Inventory, unless approved in writing by Buyer, and (ii) not place any orders relating to the manufacture of Licensed Products. Notwithstanding the foregoing, Buyer acknowledges that Seller owns up to two
million five hundred thousand dollars ($2,500,000) (valued at cost) of finished goods inventory of Licensed Products that is not included on the listing set forth on Schedule 1 and that has, as of the date hereof, been released and approved for
shipping by Prior Licensee (the “Excluded Inventory”), which Excluded Inventory and receivables relating thereto are not being sold or transferred to Buyer hereunder. 
 (b) During the Transition Period, Seller shall (i) use its best efforts to cause the Prior Licensee to permit Buyer to have access to all locations
where the Inventory of Licensed Products resides for any reason deemed necessary by Buyer including, but not limited to, to conduct a physical audit of the Inventory, (ii) use its best efforts to facilitate Buyer’s access to all third
parties that hold the Inventory and (iii) assist in transitioning inventory from suppliers, distributors and fragrance houses to Buyer. For the avoidance of doubt, during the Transition Period, Seller shall not have the right to dispose of any
stock or inventory of Licensed Products (other than the Excluded Inventory) to any person and Buyer does not consign such stock or inventory to Seller for any period, or for any purpose, whatsoever. 
 (c) As soon as practicable after the Inventory Transfer Date Seller and Buyer shall agree on a final report (the “Inventory Report”)
setting forth as of the Inventory Transfer Date, and without duplication, (i) the physical count of finished Licensed Products included in the Inventory, including Inventory at those locations where physical counts were not performed;
(ii) finished Licensed Products included in the Inventory that were in transit as of the Inventory Transfer Date; (iii) all finished Licensed Products received 

  

 - 3 - 

 
by Seller or Prior Licensee on Seller’s behalf after the Inventory Transfer Date and delivered to Buyer; (iv) the physical count of raw materials
and components in production or in transit with respect to Licensed Product as of the Inventory Transfer Date; (v) the raw materials and components in production or in transit with respect to Licensed Product that were utilized on and after the
Inventory Transfer Date; and (vi) the raw materials and components in production or in transit with respect to Licensed Product received by Seller or Prior Licensee during the Transition Period. On the Inventory Transfer Date, Seller shall
notify the Prior Licensee that it has transferred the Inventory to Buyer. Commencing on the Inventory Transfer Date Seller shall deliver to Buyer at the Prior Licensee’s warehouses or at third party facilities, and Buyer, at Buyer’s sole
expense, shall receive, accept, coordinate the movement of and move all finished inventory of Licensed Products to Buyer’s facilities (the “Inventory Transfer”). Seller shall cooperate with Buyer in transitioning the Inventory
of Licensed Products and the Operations. 
 (d) Within ten (10) days following the last shipment of Inventory pursuant to the Inventory
Transfer (the “Inventory Review Date”), Buyer shall prepare a report (the “Inventory True-up Report”) setting forth the calculation of the dollar value (at cost, based on the unit values set forth on Schedule 1) of
all raw materials and components in production or in transit with respect to Licensed Product and the Inventory as of the Inventory Transfer Date (the “Inventory True-Up Price”). The calculation shall include for the benefit of
Buyer a reduction for damaged merchandise which shall be separately itemized. Seller shall have three (3) business days to dispute any amounts on the Inventory True-up Report; provided, however, that Seller shall notify Buyer of the amount in
dispute, and provide an explanation of why the amount is in dispute. In the event of such a dispute, the Parties shall reconcile their differences within five (5) business days of Buyer’s receipt of notification of dispute, and any
resolution by them as to any disputed amounts shall be final and binding on the Parties. Within ten (10) business days of the Inventory Review Date, the following amount shall be paid: (i) if the Inventory True-Up Price is less than
twenty one million dollars ($21,000,000), Seller shall pay Buyer, in immediately available funds, an amount calculated as twenty one million dollars ($21,000,000) less the Inventory True-Up Price or (ii) if the 

  

 - 4 - 

 
Inventory True-Up Price is greater than twenty one million dollars ($21,000,000), Buyer shall pay Seller, in immediately available funds, an amount
calculated as Inventory True-Up Price less twenty one million dollars ($21,000,000). 
 (e) Buyer and Seller acknowledge and agree that, from
and after the Effective Date, (i) Buyer shall be entitled to receive all proceeds from, and relating to, the sales of Licensed Products (other than the Excluded Inventory), (ii) all Inventory shall be considered as being owned solely and
exclusively by Buyer, and any and all sales of Licensed Product (other than the Excluded Inventory) by Seller shall be subject to approval by Buyer and if approved, shall be made by Seller on behalf of Buyer with payment for same being made directly
to the account of Buyer as designated by Buyer, (iii) risk of loss with respect to the Inventory shall pass to Buyer, and (iv) Buyer shall be vested with good and marketable title to the Inventory free and clear of any liens, security
interests or other encumbrances, claims or other obligation or liability of any kind. Seller shall furnish Buyer upon execution of this Agreement a copy of the consent of Seller’s lenders to the transaction contemplated by this agreement, which
shall include an acknowledgement from Seller’s lender that the Inventory and Assets are not and shall not be subject to any liens in favor of Seller’s lenders. 
 4. Agreements. On the Effective Date, Buyer shall assume the obligations listed on Exhibit C with respect to the manufacture, supply, storage, and distribution of Licensed Products (the “Assumed
Obligations”), and agrees to pay, perform and discharge the Assumed Obligations accruing after the Effective Date and shall defend, indemnify and hold Seller harmless in regard to the Assumed Obligations including, but not limited to, any
liability incurred by Seller (i) to any customer by reason of (A) Seller’s failure to fulfill such customer’s Sales Order set forth on Exhibit A that had not been filled as of December 6, 2006 because of Buyer’s
request, or (B) Buyer’s failure to fulfill after the Effective Date such customer’s Sales Order set forth on Exhibit A that has not been filled as of the Effective Date or (ii) to any manufacturer or vendor by reason of
Buyer’s failure to pay any amount set forth on Exhibit B that is owing as of the Effective Date with respect to any Purchase Order. For the avoidance of doubt, Buyer shall not have any responsibility for or any liability arising from, under or
relating to any agreement, written or oral, of Seller or the Prior Licensee, in connection with 

  

 - 5 - 

 
the manufacture, supply, storage, and distribution of Licensed Products, other than the Assumed Obligations expressly listed on Exhibit C. In addition, with
respect to the Purchase Orders, Buyer shall have no obligation to pay, and Seller shall reimburse Buyer for the payment of, any Purchase Order in respect of which the related Inventory is included in the Inventory True-up Report in accordance with
Section 3(d) hereof. Buyer expressly understands and agrees that if (i) Seller does not receive full payment of the Total Price as set forth in Section 2 of this Agreement, or (ii) Buyer violates or breaches this Agreement,
Seller may unconditionally terminate the License Agreement (without the necessity for cause or any grace period). 
 5. Representations
and Warranties. 
 (a) Each of the Parties represents, covenants, warrants and agrees that, as of the Effective Date, (i) it has all
requisite power and authority to enter into this Agreement and to carry out the transactions contemplated hereby, and to perform its obligations hereunder, (ii) it is duly organized, validly existing and in good standing under the laws of its
state of organization and it has the requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder, (iii) the execution and delivery of this Agreement and the performance of its obligations
hereunder have been duly authorized by all necessary action on its part and each party shall deliver to the other, simultaneously with the execution of this Agreement, written confirmation of such authority. Buyer represents, covenants and warrants
that neither the purchase of the Assets or Inventory, nor the execution, delivery and performance of this Agreement does or will violate or conflict with any agreement to which Buyer is a party. Seller represents, covenants and warrants that:
(i) neither the sale of the Assets or Inventory, nor the execution, delivery and performance of this Agreement does or will violate or conflict with any agreement between Seller and the Prior Licensee, or any agreement between Seller and any
third party, or infringe, misappropriate or otherwise violate any third party intellectual property or other rights, or any applicable law; (ii) Exhibit C hereof sets forth any and all indebtedness owed and obligations, by Seller or to the best
of Seller’s knowledge and belief, the Prior Licensee, to any third party relating to, or in connection with, Licensed Product; (iii) Exhibit D hereof lists all 

  

 - 6 - 

 
distributors of Licensed Product, to the best of Seller’s knowledge and belief, all of such distributors, other than the Puerto Rico distributor
referred to below, will have no rights to distribute the Licensed Products after the Effective Date and may be terminated by Buyer without liability; and (iv) Exhibit E hereof lists all fragrance houses, liner suppliers, label suppliers, bottle
suppliers, pump suppliers, canister suppliers, packaging companies and shipping companies, and all other companies, used by Seller or, to the best of Seller’s knowledge and belief, the Prior Licensee, in connection with the manufacture and
distribution of Licensed Products. All Licensed Product received by Buyer pursuant to the Inventory Transfer shall have a shelf life of at least three (3) years from the Inventory Transfer Date as long as such items are stored in a manner
similar to those used by Prior Licensee. 
 (b) All Assets and Inventory are to be transferred to Buyer on the Effective Date, and Buyer
shall receive, on the Effective Date, good and marketable title, free and clear of any and all liens, security interests or any other encumbrance or claim of any kind. 
 (c) Buyer acknowledges that Seller has informed Buyer that the Prior Licensee had a distributor relationship in Puerto Rico which may not be terminated by Buyer except in compliance with applicable law; and Buyer
agrees to be financially responsible for and shall defend, indemnify and hold Seller harmless from claims relating to (i) Buyer’s attempt to terminate, alter or change such distributor relationship, any other breach by Buyer thereof, or
any liability arising under applicable law as a result of such termination, alteration, modification or breach, and (ii) Buyer, directly or indirectly, selling or distributing Licensed Product in Puerto Rico to any person or entity other than
such distributor. 
 (d) Seller shall be financially responsible for and shall defend, indemnify and hold Buyer harmless from the following
claims (the “Seller’s Indemnifiable Claims”): (i) all returned Licensed Products received by Seller, Buyer or Prior Licensee prior to March 31, 2007 which were sold and delivered by Seller or the Prior Licensee prior
to the Effective Date, (ii) chargeback claims and related administrative service fees for Licensed Products sold by Seller or the Prior Licensee prior to the Effective Date, (iii) customer, supplier, vendor and manufacturer claims that
arose prior to the Effective Date and received no later than one (1) year 

  

 - 7 - 

 
from the Effective Date, except as otherwise provided pursuant to Section 4 of this Agreement, (iv) claims received within one (1) year of the
Effective Date arising out of alleged defects in Licensed Products sold by Seller or the Prior Licensee to their respective distributors prior to the Effective Date, (v) claims by third parties relating to the execution of this Agreement and
the transactions contemplated hereby received no later than one (1) year from the Effective Date, (vi) claims and liabilities arising from Seller’s or the Prior Licensee’s actions prior to the Effective Date (A) under or in
respect of the Assumed Obligations received no later than one (1) year from the Effective Date, except as otherwise provided pursuant to Section 4 of this Agreement and (B) in connection with or related to the consummation by Seller
and the Prior Licensee of the transactions contemplated by the Agreement dated December 6, 2006 between Seller and the Prior Licensee (“Dec. 6 Agreement”), including, without limitation, any actions taken or omitted to be taken by
Seller in respect of the Prior Licensee’s attempt to transfer its rights under the License Agreement (as defined in the Dec. 6 Agreement) to a third party or Seller’s refusal to consent to such transfer, and (vii) any other claims or
liability resulting from a breach of any of Seller’s representations, warranties or covenants hereunder or under the License Agreement. Buyer shall afford Seller the opportunity to defend at Seller’s cost, all such claims, with counsel
reasonably acceptable to Buyer, and will not settle or compromise any such claims without Seller’s prior written consent, which consent will not be unreasonably withheld. Seller shall pay Seller’s Indemnifiable Claims promptly upon the
receipt of a written invoice for the same and shall pay all costs and expenses, including, without limitation, reasonable attorney’s fees, arising from or related to the defense of any such Seller’s Indemnifiable Claims. Seller shall use
its best efforts to enforce its rights and exercise all available recourse and remedies it has or may have against the Prior Licensee in the event that a third party, as a result of actions or inaction of the Prior Licensee, claims to have rights to
any of the Assets or Inventory sold to Buyer pursuant to this Agreement. 
 (e) Buyer shall be financially responsible for and shall defend,
indemnify and hold Buyer harmless from the following claims (the “Buyer’s Indemnifiable Claims”): (i) customer, supplier, vendor, distributor and manufacturer claims that arise after the Effective Date as a result of
Buyer’s sales of Licensed Products, including, but not limited to, the Assumed Obligations, (ii) claims and 

  

 - 8 - 

 
liabilities arising from Buyer’s failure to pay, perform and discharge the Assumed Obligations, and (iii) any other claims or liability resulting
from a breach of any of Buyer’s representations, warranties, agreements or covenants hereunder including, but not limited to, Section 4 and 5 of this Agreement. Seller shall afford Buyer the opportunity to defend at Buyer’s cost, all
such claims, with counsel reasonably acceptable to Seller, and will not settle or compromise any such claims without Buyer’s prior written consent, which consent will not be unreasonably withheld. Buyer shall pay all Buyer’s Indemnifiable
Claims promptly upon the receipt of a written invoice for the same and shall pay all costs and expenses, including, without limitation, reasonable attorney’s fees, arising from or related to the defense of any such Buyer’s Indemnifiable
Claims. 
 6. Governing Law; Legal Proceedings. This Agreement shall be governed by and construed in accordance with the laws of the
State of Florida without giving effect to its principles or rules of conflict of laws to the extent such principles or rules would require or permit the application of laws of another jurisdiction. Each Party irrevocably consents to the jurisdiction
of the courts of the State of Florida and of the United States District Court for the Southern District of Florida in any action arising out of, in connection with, or relating to this Agreement. 
 7. Miscellaneous. This Agreement, together with the License Agreement, represents the entire agreement between the Parties with respect to the
matters addressed herein and supersedes all prior negotiations, representations, or agreements between the Parties, whether oral or written, on the subject hereof. This Agreement shall be binding on all successors, administrators, executors,
representatives and assigns of each of the Parties. This Agreement may not be amended, modified, altered or rescinded except upon a written instrument designated as an amendment to this Agreement and executed by the Parties. 
 8. Further Assurances. At and after the Effective Date, from time to time, at Buyer’s request and expense, Seller shall execute and deliver
such other instruments and take such other actions as Buyer may reasonably request to more effectively put Buyer in possession and control of the Inventory and the Assets. Seller shall cooperate with Buyer to deliver such bills of sale,
endorsements, 

  

 - 9 - 

 
assignments and other good and sufficient instruments of conveyance and transfer in form and substance reasonably satisfactory to Buyer and its counsel, as
are commercially reasonable under the circumstances, to vest in Buyer good and valid title to the Assets and Inventory free and clear of any encumbrances. 
 9. Specific Performance. The Parties recognize and affirm that in the event of breach by either Party of any of the provisions of this Agreement, money damages would be inadequate and no adequate remedy at law
would exist. Accordingly, the Parties agree that each Party shall have the right, in addition to any other rights and remedies existing in its favor, to enforce its rights and the obligations of the other Party under this Agreement not only by an
action or actions for damages, but also by an action or actions for specific performance, injunction and/or other equitable relief in order to enforce or prevent any violations of the provisions of this Agreement. 
 10. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall, collectively and separately, constitute one
and the same agreement. 
 11. No Third Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any person
other than the Parties hereto and their respective successors and permitted assigns. 
 12. Assign; Buyer Designee. Seller shall have
the right to assign any and all of its rights under this Agreement to one or more of its subsidiaries or affiliates. Buyer shall not have the right to assign its rights under this Agreement without the prior written consent of Seller, which consent
shall not be withheld unreasonably. 
 13. Notices. All notices, requests, demands, claims, and other communications hereunder will be
in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given if (and then two business days after) it is sent by registered or certified mail, return receipt requested, postage prepaid, and addressed to
the intended recipient as set forth below: 
  

 - 10 - 

 If to BUYER: 
 Falic Fashion Group, LLC 
 6100 Hollywood Blvd, 7th Floor 
 Hollywood, Florida 33024 
 Attn: President

 If to Seller: 
 Perry Ellis
International, Inc. 
 3000 N.W. 107th Avenue 
 Miami, Florida 33172 
 Attn: Chief Executive Officer 
 With a copy to: 
 Perry Ellis International,
Inc. 
 3000 N.W. 107th Avenue 
 Miami, Florida 33172 
 Attn: General Counsel 
 Either Party may also send any notice, request, demand, claim, or other communication hereunder to
the intended recipient at the address set forth above using any other means (including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other
communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient. Either Party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be
delivered by giving the other parties hereto notice in the manner herein set forth. 
 14. Brokerages Fees; Certain Expenses.

 (a) Brokerage Fees. The Parties confirm and agree that no business broker/finder facilitated the transactions contemplated by this
Agreement and that no business broker/finder is entitled to a fee, commission, compensation or any other payment as a result of this Agreement. 
 (b) Certain Expenses. Except as otherwise provided in this Agreement and regardless of whether the transactions contemplated by this Agreement are consummated, each Party agrees to pay all expenses, fees and costs (including, without
limitation, legal, accounting and consulting expenses) incurred by it in connection with the transactions contemplated hereby. 
  

 - 11 - 

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

  

			
	FALIC FASHION GROUP, LLC
		
	By:	 	 /s/ Timothy McCloskey

		 	Timothy McCloskey
	Its:	 	Chief Financial Officer
	
	PERRY ELLIS INTERNATIONAL, INC.
		
	By:	 	 /s/ George Feldenkreis

		 	George Feldenkreis
	Its:	 	Chief Executive Officer

  

 - 12 - 

 SCHEDULE 1 
 INVENTORY (ESTIMATED) 
 SEE ATTACHED LISTING 
  

 EXHIBIT A 
 SALES ORDERS 
 Attached hereto 
  

 EXHIBIT B 
 PURCHASE ORDERS 
 Attached hereto 
  

 EXHIBIT C 
 ASSUMED OBLIGATIONS 
 Attached hereto 
  

 EXHIBIT D 
 LIST OF DISTRIBUTORS 
 Attached hereto 
  

 EXHIBIT E 
 LIST OF FRAGRANCE HOUSES, MANUFACTURES, 
 SUPPLIERS, PACKAGERS AND SHIPPERS 
 Attached hereto

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