Document:

Form of Non-Qualified Stock Option Agreement

 Exhibit 10.2 
  
 MASSBANK CORP. 
 AMENDED AND RESTATED 
 1994 STOCK INCENTIVE PLAN 
 NON-QUALIFIED STOCK OPTION 
  

			
	 Name of Optionee:
                                        
            
	  	 
		
	 Number of Options:
                                        
          
	  	 Date of Grant:
                                    

		
	 Option Exercise Price
$                                        
        
	  	 Expiration Date:
                                

  
 Pursuant to the
MASSBANK Amended and Restated 1994 Stock Incentive Plan as amended, (the “Plan”), MASSBANK Corp. (the “Company”), a Delaware corporation, hereby grants to the Optionee named above, who is now a Director of the Company, an option
to purchase on or prior to the Expiration Date specified above all or any part of the number of shares of common stock, par value $1.00 per share (the “Common Stock”), of the Company specified above (the “Option Shares”) at the
Option Exercise Price per share specified above, subject to the terms and conditions set forth herein and in the Plan. This Stock Option is intended to be a Non-Qualified Stock Option. 
  
 1. Exercise of Stock Option. 
  

	 	(a)	 This Stock Option is fully vested and the Optionee may exercise this Stock Option at any time by delivering to the Option Committee of the Company (the “Option
Committee”) on any business day prior to the Expiration Date, a written notice specifying the number of shares of Common Stock Optionee then desires to purchase (the “Notice”). The Notice shall be accompanied (i) by payment thereof
either in cash equal to the option price for the total number of shares specified in the Notice (the “Total Option Price”) or, at Optionee’s election if permitted under applicable laws and regulations and subject to the terms of the
Plan, in shares of Common Stock of the Company having a fair market value, as determined in good faith by the Option Committee, equal to or less than the Total Option Price, plus cash in an amount equal to 

  

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the excess, if any, of the Total Option Price over the fair market value of such shares of Common Stock, and (ii) by such agreement, statement or other
evidence as the Company may require in order to satisfy itself that the issuance of the Option Shares being purchased pursuant to such exercise and any subsequent resale thereof will be in compliance with applicable laws and regulations, including
without limitation all applicable federal and state securities and banking laws and regulations. 
  

	 	(b)	Certificates for the Option Shares so purchased will be issued to Optionee upon compliance to the satisfaction of the Company with all requirements under applicable laws or
regulations in connection with such issuance. Until Optionee shall have complied with the requirements hereof and of the Plan, the Company shall be under no obligation to issue the Option Shares subject to this Stock Option, and the determination of
the Option Committee as to such compliance shall be final and binding on Optionee. Until such Option Shares shall have been issued and delivered in accordance with the foregoing provisions and until Optionee’s name shall have been entered as a
stockholder of record on the books of the Company, Optionee shall not be deemed for any purpose to be the owner of any Option Shares subject to this Stock Option. 

  

	 	(c)	The minimum number of Option Shares with respect to which this Stock Option may be exercised at any one time shall be 100 shares, or such lesser number as is equal to the total
number available at the time for purchase under this Stock Option. 

  

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 2. Termination of Directorship. This Stock Option, as to any unexercised portion hereof, shall
terminate at such time as the Optionee shall no longer serve as a Director of the Company; provided, however, that any portion of this Stock Option that was exercisable as of the date the Optionee shall no longer serve as a Director of
the Company may be exercised as to any shares not theretofore purchased for a period of three months following such date, except that if such termination of service as a Director results from Optionee’s death or disability, any such portion of
this Stock Option may be exercised (in the case of Optionee’s death by his/her executors or administrators) for a period of twelve months following such termination date. 
  
 No Stock Option will confer upon Optionee any right to continued status as a Director of the Company. 
  
 3. Incorporation of Plan. Notwithstanding anything herein to the
contrary, this Stock Option shall be subject to and governed by all the terms and conditions of the Plan. 
  
 4. Transferability. This Agreement is personal to Optionee, is non-assignable and is not transferable in any manner, by operation of law or
otherwise other than by will or by the laws of descent and distribution, and is exercisable, during Optionee’s lifetime, only by Optionee. Notwithstanding the foregoing, Optionee may transfer, without consideration for the transfer, this Stock
Option to members of Optionee’s immediate family, to trusts for the benefit of such family members and to partnerships in which such family members are the only partners. 
  
 5. Adjustment Upon Changes in Capitalization. 
  

	 	(a)	 the shares of stock covered by this Stock Option are shares of the Common Stock of the Company. If the shares of the Company’s Common Stock as a whole are
increased, decreased, changed into or exchanged for a different number or kind of shares or securities of the Company after the date of this Stock Option, whether through merger, consolidation, reorganization, recapitalization, reclassification,
stock dividend, stock split, combination of shares, exchange of shares, change in corporate structure or the like, an appropriate and 

  

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proportionate adjustment shall be made in the number, kind and per share exercise price of shares or other securities subject to any unexercised portions of
this Stock Option. In the event of any such adjustment in this Stock Option, Optionee thereafter shall have the right to purchase at the share price or per unit price, as so adjusted, the number of shares or securities under this Stock Option which
Optionee could purchase at the total purchase price applicable to the unexercised portion of this Stock Option immediately prior to such adjustment. 
  

	 	(b)	Adjustments under this Paragraph 5 shall be made by the Board of Directors or the Option Committee of the Company and such determinations shall be conclusive.

  
 6. Effect of Certain Transactions. Except
as set forth below, in the case of (i) the dissolution or liquidation of the Company, (ii) a reorganization, merger or consolidation in which the Company is acquired by another entity or in which the Company is not the surviving corporation, or
(iii) the sale of all or substantially all of the property of the Company to another corporation, this Stock Option shall terminate on the effective date of such transaction, unless provision is made in connection with such transaction for the
assumption of this Stock Option or the substitution for this Stock Option of a new option of the successor corporation or parent thereof, with appropriate adjustment as to the number and kind of shares and the per share exercise price, as provided
in Paragraph 5. In the event of such transaction which will trigger such termination, the Company shall give written notice thereof to Optionee at least twenty days prior to the effective date of any such transaction or the record date on which
stockholders of the Company entitled to participate in such transaction shall be determined, whichever shall first occur. In the event of such termination, any unexercised portion of this Stock Option, whether or not then vested and exercisable,
shall be exercisable in full for at least fifteen days prior to the date of such termination whether or not otherwise exercisable during such period; provided, however, that in no event shall this Stock Option be exercisable after the
Expiration Date. 
  

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 Notwithstanding anything to the contrary contained herein, neither the formation of a holding company at the direction of
the Company for the purpose of acquiring all or substantially all of the outstanding Common Stock of the Company nor the said acquisition by such a holding company shall trigger such a termination, and upon the effective date of such acquisition of
the outstanding Common Stock of the Company by the holding company, the options issued hereunder shall be considered options to purchase shares of the holding company. 
  
 7. Miscellaneous. Notice hereunder shall be mailed or delivered to the Company at its principal place of business,
and shall be delivered to Optionee in person or mailed or delivered to Optionee at the address last provided in writing to the Company, or in either case at such other address as one party may subsequently furnish to the other party in writing.

  
 [Remainder of Page Intentionally Left Blank]

  

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	 	 	 	 	 MASSBANK Corp.

				
	 	 	 	 	 By:
	 	  

	 	 	 	 	 Name:
	 	 
	 	 	 	 	 Title:
	 	 
	
	 The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned.

			
	 	 	 	 	 Optionee:

			
	 Dated:
                    
	 	 	 	

  

 6Form of Warrant to Purchase Common Stock

  
 Exhibit 10.7

  

			
	 Warrant No. [    ]
	  	December [    ], 2004

  
 WARRANT TO PURCHASE
COMMON STOCK 
 OF 
 STOCKERYALE, INC. 
  
 THIS WARRANT AND THE UNDERLYING SECURITIES
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE ASSIGNED
EXCEPT (1) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES THAT IS EFFECTIVE UNDER THE SECURITIES ACT OR, UPON RECEIPT OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, PURSUANT TO AN AVAILABLE EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT RELATING TO THE DISPOSITION OF SUCH SECURITIES AND (2) IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. 
  
 STOCKERYALE, INC., a Massachusetts corporation (the “Company”), hereby certifies that, for value received,
[                    ], (together with its successors and assigns and any transferee of this Warrant, and its successors and assigns, the
“Holder”), is entitled, subject to the terms and conditions set forth in this warrant (this “Warrant”), to purchase from the Company, at any time or times on or after the date hereof until 5:00 P.M., Boston,
Massachusetts time on the fifth anniversary of the date hereof (the “Expiration Date”), [            ] duly authorized, validly issued, fully paid, nonassessable
shares of the Company’s common stock, par value $.001 per share (the “Common Stock”), which shall be adjusted or readjusted from time to time as provided in this Warrant (the “Warrant Shares”), at an initial
purchase price per share equal to $1.38 (the “Initial Warrant Price”), which shall be adjusted or readjusted from time to time as provided in this Warrant (as adjusted, the “Warrant Price”).  
  
 Section 1. Exercise; Exchange of Warrant 
  
 1.1. Manner of Exercise; Exchange. 
  
 (a) Exercise. The Holder may exercise this Warrant,
in whole or in part (except as to a fractional share), at any time and from time to time during normal business hours on any Business Day following the date hereof and on or prior to the Expiration Date, by (i) delivering to the Company at its
principal executive offices a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), duly executed by the Holder, specifying the number of Warrant Shares (without giving effect to any adjustment
thereto) to be issued to the Holder as a result of such exercise, (ii) surrendering this Warrant to the Company, properly endorsed by the Holder (or if this Warrant has been destroyed, stolen or has otherwise been misplaced, by delivering to the
Company an affidavit of loss duly executed by the Holder, in which the Holder shall agree to indemnify the Company for any loss or expense incurred as a result), and (iii) by 

  

 
tendering payment for the shares of Common Stock designated by the Exercise Notice in lawful money of the United States in the form of cash, bank or
certified check made payable to the order of the Company, or in any combination thereof, of an amount equal to the product of (A) the Warrant Price (after giving effect to any adjustment pursuant to Section 2 hereof) and (B) the number of Warrant
Shares (after giving effect to any adjustment pursuant to Section 2 hereof) as to which this Warrant is being exercised. 
  
 (b) Net Exchange. The Holder may, at its option, in lieu of exercising or converting this Warrant pursuant to the terms of
Section 1.1(a), elect to exchange this Warrant, in whole or in part (except as to a fractional share), at any time and from time to time during normal business hours on any Business Day following the date hereof and on or prior to the
Expiration Date by (i) delivering to the Company at its principal executive offices a written notice, in the form attached hereto as Exhibit B (the “Exchange Notice”), duly executed by the Holder, specifying the number of
Warrant Shares (without giving effect to any adjustment thereto) to be issued to the Holder as a result of such exchange, and (ii) surrendering this Warrant to the Company, properly endorsed by the Holder (or if this Warrant has been destroyed,
stolen or has otherwise been misplaced, by delivering to the Company an affidavit of loss duly executed by the Holder, in which the Holder shall agree to indemnify the Company for any loss or expense incurred as a result), and the Holder shall
thereupon be entitled to receive the number of Warrant Shares equal to the product of (A) the number of Warrant Shares that would be issuable upon exercise of this Warrant (or, if only a portion of this Warrant is being exercised, issuable upon the
exercise of such portion) for cash, determined as provided in Section 2, and (B) a fraction, the numerator of which is the Fair Market Value per share of Common Stock at the time of such exercise minus the Warrant Price in effect at the time of such
exercise, and the denominator of which is the Fair Market Value per share of Common Stock at the time of such exercise, such number of shares so issuable upon such exchange to be rounded up or down to the nearest whole number of shares of Common
Stock. 
  
 (c) For all purposes of this Warrant
(other than this Section 1.1), any reference herein to the “exercise” of this Warrant shall be deemed to include a reference to the exchange of this Warrant into Common Stock in accordance with the terms of Section 1.1(b), and any
reference to an “Exercise Notice” shall be deemed to include a reference to an Exchange Notice in accordance with the terms of Section 1.1(b). 
  
 (d) Notwithstanding anything in this Warrant to the contrary, if this Warrant shall be surrendered for exercise within any period during
which the transfer books for the Company’s Common Stock or other securities purchasable upon the exercise of this Warrant are closed for any purpose, the Company shall not be required to make delivery of certificates for the shares of Common
Stock or other securities purchasable upon such exercise until the date of the reopening of said transfer books. 
  
 1.2. When Exercise Effective. Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of
business on the Business Day on which this Warrant shall be deemed to have been surrendered to the Company as provided in Section 1.1, and at such time the Person or Persons in whose name or names any certificate or certificates for shares of
Common Stock shall be issuable upon such exercise as provided in Section 1.3 shall be deemed to have become the Holder or Holders of record thereof, provided, however, that if, at 

  

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the date of surrender of such Warrant and payment of such Exercise Payment, the transfer books for the Common Stock or other class of stock purchasable upon
the exercise of such Warrant shall be closed, the certificates for the Shares shall be issuable as of the date on which such books shall next be opened (whether before, on or after the Expiration Date), and until such date the Company shall be under
no duty to deliver any certificate for such Shares. 
  
 1.3.
Delivery of Stock Certificates Upon Exercise. As soon as reasonably practicable after exercise of this Warrant, in whole or in part, and in any event within ten (10) business days thereafter, in accordance with this
Section 1, the Company shall, at its expense, cause to be issued in the name of and delivered to the Holder: (a) a certificate or certificates for the number of Warrant Shares, determined as provided in Section 2 of this Warrant, to
which the Holder shall be entitled upon such exercise and, (b) unless this Warrant has expired or has been exercised in full, a new Warrant (or Warrants) of like tenor, dated the date hereof, for the number of Warrant Shares remaining following such
exercise (without giving effect to any adjustment thereto), and shall be subject to adjustment as provided for in this Warrant as of the date hereof. 
  
 Section 2. Adjustments to Warrant Price and Warrant Shares 
  
 2.1. General. Following any adjustment to the Warrant Price pursuant to Section 2.2 below, the number of Warrant Shares that the
Holder shall be entitled to receive upon exercise of this Warrant shall be determined by multiplying the number of Warrant Shares which would be issuable upon such exercise immediately prior to such adjustment, by a fraction, (i) the numerator of
which shall be the Warrant Price as in effect immediately prior to such adjustment, and (ii) the denominator of which shall be Warrant Price in effect immediately following such adjustment. 
  
 2.2. Adjustments. 
  
 (a) Subdivision or Combination of Common Stock. If
the Company shall at any time, or from time to time, after the date hereof subdivide its outstanding shares of Common Stock into a greater number of shares (by any stock split, stock dividend or otherwise), then the Warrant Price in effect
immediately prior to such subdivision shall be proportionately reduced, and, conversely, if the Company shall at any time after the date hereof combine its outstanding shares of Common Stock into a smaller number of shares (by any reverse stock
split or otherwise), then the Warrant Price in effect immediately prior to such combination shall be proportionately increased. 
  
 (b) Reorganization or Reclassification. If any capital reorganization or reclassification of the capital stock of the Company shall
be effected in such a way that Holders of Common Stock shall be entitled to receive stock, securities or assets with respect to or in exchange for Common Stock, then, as a condition of such reorganization or reclassification, lawful and adequate
provisions shall be made whereby the Holder shall thereupon have the right to receive, upon the basis and upon the terms and conditions specified herein and in lieu of the Warrant Shares immediately theretofore receivable upon the exercise of this
Warrant in full, as the case may be, such shares of stock, securities or assets as may be issued or payable with respect to or in exchange for a number of outstanding shares of such Common Stock equal to the number of shares of such Common Stock
immediately theretofore receivable upon such exercise of this Warrant in full had such reorganization or reclassification not taken place, and in any such 

  

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case appropriate provisions shall be made with respect to the rights and interests of the Holder to the end that the provisions hereof (including, without
limitation, provisions for adjustments of the Warrant Price) shall thereafter be applicable, as nearly as may be, in relation to any shares of stock, securities or assets thereafter deliverable upon the exercise of such conversion rights.

  
 (c) Dividends and Distributions. In
case, at any time prior to the Expiration Date, the Company shall declare a cash dividend upon its Common Stock payable otherwise than out of earnings or earned surplus (determined in accordance with generally accepted accounting principles) or
shall distribute to holders of its Common Stock shares of its capital stock (other than Common Stock), stock or other securities of other persons, evidences of indebtedness issued by the Company or other persons, assets (excluding cash dividends and
distributions) or options or rights (excluding options to purchase and rights to subscribe for Common Stock or other securities of the Company convertible into or exchangeable for Common Stock), then, in each such case, immediately following the
record date fixed for the determination of the holders of Common Stock entitled to receive such dividend or distribution, provision shall be made so that the Holder shall receive upon exercise hereof, in addition to the number of Warrant Shares
issuable hereunder, the kind and amount of securities of the Company, cash or other property which the Holder would have been entitled to receive had this Warrant been exercised on the date of such event and had the Holder thereafter, during the
period from the date of such event to and including the date that the Holder exercises this Warrant, retained any such securities receivable during such period, giving application to all adjustments called for during such period under this Section 2
with respect to the rights of the Holder; provided, however, that, in the event any dividend or distribution subject to this Section 2.2(c) is not actually paid, no adjustment to the Warrant Shares receivable upon exercise hereof shall
be made. 
  
 Section 3. Merger, Consolidation, or Other Extraordinary
Transaction. 
  
 In case of any consolidation of the
Company with or merger of the Company with and into another corporation or other entity or any consolidation with or merger of any other corporation or other entity with and into the Company following which the Company’s stockholders
immediately prior to such transaction control less than 50% of the voting equity of the resulting corporation or other entity or in case of any sale or conveyance to another corporation or other person or entity of all or substantially all of the
assets of the Company as an entirety or substantially as an entirety (collectively, a “Consolidation”) (i) each Warrant Holder shall have the right to exercise any Warrant then held immediately prior to such Consolidation, upon
payment of the Warrant Price then in effect (regardless whether or not the first anniversary of the date hereof shall have occurred) and (ii) the Warrants shall terminate and be of no further force and effect as of the consummation of such
transaction. 
  
 Section 4. Covenants of the Company

  
 4.1. The Company covenants and agrees that:

  
 (a) all shares of Common Stock that may be
issued upon the exercise of the rights represented by this Warrant shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable; 
  

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 (b) during the period within which this Warrant may be exercised, it will at all times
have authorized and reserved a sufficient number of shares of Common Stock to provide for the exercise of rights represented by this Warrant; 
  
 (c) it shall not, by amendment to its certificate of incorporation (whether by way of merger, operation of law, or otherwise) or through
any reorganization, transfer of assets, consolidation, merger, dissolution, issuance or sale of securities, agreement or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed
hereunder by the Company and shall at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Holders
against impairment. 
  
 Section 5. Restrictions on Transfer

  
 5.1. Restrictive Legend. 

 
 (a) The Holder understands and agrees that each
certificate representing shares of Common Stock issued upon exercise of this Warrant, shall be stamped or otherwise imprinted with a legend in substantially the form as follows: 
  
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT (1) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES WHICH IS EFFECTIVE UNDER THE
SECURITIES ACT OR, UPON RECEIPT OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT RELATING TO THE DISPOSITION OF SUCH SECURITIES AND (2) IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS. 
  
 (b) If at any time any
securities other than shares of Common Stock shall be issuable upon the exercise of this Warrant, such securities shall bear a legend similar to the one set forth above. 
  
 5.2. Compliance with Securities Laws on Transfer. This Warrant and the Warrant Shares issuable upon
exercise of this Warrant may not be transferred or assigned in whole or in part without compliance with applicable federal and state securities laws by the transferor and the transferee (including, without limitation, the delivery of customary
investment representation letters and legal opinions reasonably satisfactory to the Company). No opinion of counsel shall be required in connection with the transfer by the Holder to a wholly-owned subsidiary of the Holder, provided that the
transferee agrees in writing to be subject to the terms of this Warrant. 
  
 5.3. Restrictions on Transfer. The Holder agrees with the Company not to, directly or indirectly, sell, offer, contract or grant any option to sell (including without limitation any 

  

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short sale), pledge, transfer, establish a “put equivalent position” as such term is defined by Rule 16a-1(h) under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), or otherwise dispose of the Warrant, any Warrant Shares, options or warrants to acquire any Warrant Shares, or securities exchangeable or exercisable for or convertible into any Warrant Shares
owned either of record or beneficially (as defined in Rule 13d-3 under the Exchange Act) by the Holder or publicly announce the Holder’s intention to do any of the foregoing or enter into any swap or other arrangement that transfers to another,
in whole or in part, any of the economic benefits or risks of ownership of any Warrant Shares, prior to the first anniversary of the date hereof without the prior written consent of the Company; provided, however, that the Holder may,
without the prior written consent of the Company, transfer the Warrant or the Warrant Shares to a natural person who is an affiliate (as such term is defined in Rule 405 under the Securities Act) of the Company so long as (a) such transfer is exempt
from the registration requirements of the Securities Act and the Holder delivers an opinion of counsel to such effect in form and substance reasonably satisfactory to the Company, (b) such transferee qualifies as an “accredited investor”
as defined in Rule 501 under the Securities Act and executes a representation letter in a form substantially similar to the one executed by the Holder on the date hereof, (c) such transferee agrees in writing to be bound by the transfer restrictions
in this Section 5.3 and (d) there are no more than ten (10) such transferees in the aggregate. For the sake of clarity, the restrictions set forth in this Section 5.3 do not affect the Holder’s right to exercise or exchange this Warrant in
accordance with Section 1 hereof. 
  
 Section 6.
Miscellaneous 
  
 6.1. Notice of
Adjustments. 
  
 (a) Upon the occurrence
of each adjustment or readjustment in the Warrant Price and the Warrant Shares issuable upon exercise of this Warrant, the Company, at its expense, shall promptly thereafter compute such adjustment or readjustment in accordance with the terms of
this Warrant and provide written report thereof certified by the Chief Financial Officer of the Company to the Holder stating the number of Warrant Shares and the Warrant Price, after giving effect to such adjustment or readjustment, and setting
forth in reasonable detail the method of calculation and the facts upon which such calculation is based. 
  
 (b) The Company shall also keep copies of all such reports generated pursuant to this Section 6.1 at its principal offices and will
cause the same to be available for inspection at such offices during normal business hours by Holder any prospective purchaser of this Warrant designated by Holder. 
  
 6.2. Notice of Certain Events. In case at any time: 
  
 (a) the Company shall pay any dividend upon, or make any
distribution in respect of, its Common Stock, whether in cash, property, stock or other securities and whether or not a regular cash dividend; 
  
 (b) there shall be any proposed capital reorganization, or reclassification of the capital stock of the Company, or consolidation or
merger of the Company with, or sale of all or substantially all of its assets to, another person or entity; or 
  

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 (c) there shall be a voluntary or involuntary dissolution, liquidation or winding up of
the Company; 
  
 then, in any one or more of said cases, the Company shall give
notice to Holder at least ten (10) days prior to the date on which (i) the books of the Company shall close or a record shall be taken for such dividend, distribution or subscription rights, or (ii) such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up shall take place, as the case may be. 
  
 6.3. Notice. Any notice that is required or provided to be given under this Warrant shall be deemed to have been
sufficiently given and received for all purposes when delivered in writing by hand, or five (5) days after being sent by certified or registered mail, postage and charges prepaid, return receipt requested, or two (2) days after being sent by a
nationally recognized overnight delivery service or by facsimile if receipt is confirmed, to the following addresses: if to the Company: StockerYale, Inc., Attn: Chief Financial Officer, 32 Hampshire Road, Salem, New Hampshire 03079, Facsimile:
(603) 898-8851, or at any other address designated in writing by the Company, to Holder; if to Holder, at the address on the signature page, or at any other address designated by Holder to the Company in writing. 
  
 6.4. No Change in Warrant Terms on
Adjustment. Irrespective of any adjustment in the Warrant Price or the number of shares of Common Stock, this Warrant, whether theretofore or thereafter issued or reissued, may continue to express the same price and number of
shares of Common Stock as are stated herein and the Warrant Price and such number of Common Stock shares specified herein shall be deemed to have been so adjusted. 
  
 6.5. Issuance and Transfer Taxes. The issuance of certificates for shares of Common Stock
upon any exercise of this Warrant shall be made without charge to Holder for any issuance tax in respect thereto; provided, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the
issuance and delivery of any certificate in a name other than that of Holder or upon any transfer of this Warrant. 
  
 6.6. Market Stand Off. Holder agrees, if requested by an underwriter engaged by the Company in connection with any
underwritten public offering of the Company’s securities, not to sell or otherwise transfer or dispose of the Warrant Shares held by it for such period, not to exceed one hundred eighty (180) days following the effective date of the relevant
registration statement filed under the Securities Act in connection with such public offering, as such underwriter shall specify reasonably and in good faith. 
  

6.7. Exchange of Warrant. This Warrant is exchangeable at no cost to the Holder upon the surrender hereof by Holder
at such office or agency of the Company, for a new warrant of like tenor representing in the aggregate the right to subscribe for and purchase the number of shares that may be subscribed for and purchased hereunder from time to time after giving
effect to all the provisions hereof, each of such new warrants to represent the right to subscribe for and purchase such number of shares as shall be designated by said Holder hereof at the time of such surrender. 
  

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 6.8. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost,
stolen, mutilated or destroyed, the Company shall at no cost to the Holder, on such reasonable terms as to indemnity or otherwise as it may in its discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof),
issue a new warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed. Any such new warrant shall constitute an original contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated
or destroyed Warrant shall be at any time enforceable by anyone. 
  
 6.9. Fractional Interest. The Company shall not be required to issue fractions of Warrant Shares on the exercise of a Warrant. If more than one Warrant shall be presented for exercise in full at the same time by the
same Warrant Holder, the number of Warrant Shares which shall be issuable upon the exercise thereof shall be computed on the basis of the aggregate number of Warrant Shares purchasable on exercise of the Warrants so presented. If any fraction of a
Warrant Share would, except for the provisions of this Section 6.9, be issuable on the exercise of any Warrant (or specified portions thereof), the number of Warrant Shares to be issued shall be rounded up or down to the nearest whole number.

  
 6.10. Governing Law. This Warrant shall
be deemed to be a contract made under, and shall be construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to conflict of laws principles thereof. 
  
 6.11. Section Headings; Construction. The descriptive
headings in this Warrant have been inserted for convenience only and shall not be deemed to limit or otherwise affect the construction of any provision thereof or hereof. The parties have participated jointly in the negotiation and drafting of this
Warrant and the other agreements, documents and instruments executed and delivered in connection herewith with counsel sophisticated in investment transactions. In the event an ambiguity or question of intent or interpretation arises, this Warrant
shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Warrant and the agreements, documents and instruments
executed and delivered in connection herewith. 
  
 6.12. Remedies; Severability. It is specifically understood and agreed that any breach of the provisions of this Warrant by any person subject hereto will result in irreparable injury to the other parties hereto, that
the remedy at law alone will be an inadequate remedy for such breach, and that, in addition to any other remedies which they may have, such other parties may enforce their respective rights by actions for specific performance (to the extent
permitted by law). Whenever possible, each provision of this Warrant shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be deemed prohibited or invalid under such
applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, and such prohibition or invalidity shall not invalidate the remainder of such provision or the other provisions of this Warrant. 
  
 6.13. Integration. This Warrant, including the exhibits
referred to herein, constitute the entire agreement and supersede all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. 
  

 8 

 6.14. No Rights or Liabilities as Stockholder. Except as expressly set forth herein,
nothing contained in this Warrant shall be construed as conferring upon Holder any rights as a stockholder of the Company or as imposing any obligation on Holder to purchase any securities or as imposing any liabilities on Holder as a stockholder of
the Company, whether such obligation or liabilities are asserted by the Company or creditors of the Company. 
  
 6.15. Waivers and Consents; Amendments. 
  
 (a) For the purposes of this Warrant and all documents executed pursuant hereto, no course of dealing
between or among any of the parties hereto and no delay on the part of any party hereto in exercising any rights hereunder or thereunder shall operate as a waiver of the rights hereof or thereof. No covenant or provision hereof may be waived
otherwise than by a written instrument signed by the party or parties so waiving such covenant or other provision contemplated herein. 
  
 (b) No amendment to this Warrant may be made without the written consent of the Company and Holder or Holders who retain the right to
receive greater than fifty percent (50%) of the shares of Common Stock issuable upon exercise of this Warrant. 
  
 (c) Any actions required to be taken with respect to consents, approvals or waivers required or contemplated to be given by Holder, shall
require the vote of Holder or Holders who retain the right to receive greater than 50% of the shares of Common Stock issuable under this Warrant, and any such action by such majority interest vote shall bind all Holders. 
  
 6.16. Certain Definitions. The following terms as used
in this Warrant shall have the following meanings: 
  
 (a) An “Affiliate” means any person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with the first mentioned person. A person shall be deemed to control
another person if such first person possesses directly or indirectly the power to direct, or cause the direction of, the management and policies of the second person, whether through the ownership of voting securities, by contract or otherwise.

  
 (b) “Business Day” means any
day other than a Saturday or a Sunday or a day on which commercial banking institutions in Boston, Massachusetts are authorized or obligated by law or executive order to be closed. Any reference to “days” (unless Business Days are
specified) shall mean calendar days. 
  
 (c)
“Code” means the Internal Revenue Code of 1986, as amended. 
  
 (d) “Fair Market Value” means the value of a share of Common Stock determined in accordance with the following
provisions: 
  
 (i) if such security is listed on
a national securities exchange registered under the Securities Exchange Act of 1934, as amended, a price equal to the average of the closing sales prices for such security on such exchange for each day during the ten (10) consecutive trading days
immediately preceding the date in question; and 
  

 9 

 (ii) if not so listed, and such security is quoted on the Nasdaq National Market or the
Nasdaq SmallCap Market, a price equal to the average of the closing bid and asked prices for such security quoted on such system each day during the ten (10) consecutive trading days immediately preceding the date in question. 
  
 If the security is not listed or quoted as contemplated above, the Fair
Market Value shall be the value of a share of Common Stock as determined by the Board of Directors of the Company in its reasonable good faith judgment. 
  
 6.17. Other Definitional Provisions. 
  

(a) Except as otherwise specified herein, all references herein: 
  
 (i) to any person other than the Company, shall be deemed to include such person’s successors and
assigns; 
  
 (ii) to the Company shall be deemed
to include the Company’s successors; and 
  
 (iii) to any applicable law defined or referred to herein, shall be deemed references to such applicable law as the same may have been or may be amended or supplemented from time to time. 
  
 (b) When used in this Warrant, the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall refer to this Warrant as a whole and not to any provision of this Warrant, and the words “Section” and “Exhibit” shall refer to Sections of, and
Exhibits to, this Warrant unless otherwise specified. 
  
 (c) Whenever the context so requires the neuter gender includes the masculine or feminine, and the singular number includes the plural, and vice versa. 
  

 10 

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

					
	STOCKERYALE, INC.
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
	
	ACKNOWLEDGED AND AGREED:
	
	_______________
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
			
	 	 	 Address:
	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 

  

  
 EXHIBIT A 

FORM OF EXERCISE NOTICE 
  
 [To be executed only upon exercise of Warrant pursuant to Section 1.1(a)] 
  
 To: STOCKERYALE, INC. 
  
 The undersigned registered Holder of the within Warrant hereby irrevocably exercises such Warrant for, and purchases thereunder,
                                        
                 shares of the Common Stock and herewith makes payment of
$                     therefor, and requests that the certificates for such shares be issued in the name of, and delivered to
                                        
        , whose address
is                                       
                      . 
  

					
			
	 Dated:
                                        
                
	 	 	 	  
	 	 	 	 	 (Signature must conform in all respects
 to name of
Holder as specified on the face of
 Warrant)

			
	 	 	 	 	 
	 	 	 	 	 (Street Address)

			
	 	 	 	 	 
	 	 	 	 	 (City)                    (State)                 
   (Zip Code)

  

  
 EXHIBIT B 

FORM OF EXCHANGE NOTICE 
  
 [To be executed only upon net exchange of the Warrant pursuant to Section 1.1(b)] 
  
 To: STOCKERYALE, INC. 
  
 The undersigned registered Holder of the within Warrant hereby irrevocably exchanges such Warrant with respect to
                                        
                                     shares of the Common Stock
which such Holder would be entitled to receive upon the exercise hereof, and requests that the certificates for such shares be issued in the name of, and delivered
to                                       
          , whose address is
                                        
                        . 
  

					
			
	 Dated:
                                        
            
	 	 	 	  
	 	 	 	 	(Signature must conform in all respects to name of Holder as specified on the face of Warrant)
			
	 	 	 	 	 
	 	 	 	 	 (Street Address)

			
	 	 	 	 	 
	 	 	 	 	 (City)                    (State)                 
   (Zip Code)

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