Document:

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                                                                   EXHIBIT 10.25

                          REGISTRATION RIGHTS AGREEMENT

            REGISTRATION RIGHTS AGREEMENT, dated as of February 4, 2005 (this
"Agreement"), by and between Henry Birks & Sons Inc., a Canadian corporation
(the "Company"), and Prime Investments SA, a Luxembourg corporation (the
"Holder").

            WHEREAS the Holder holds 1,012,228 Series A Preferred Shares Series
A (the "Preferred Shares") of the Company and a US$2,500,000 Secured Convertible
Note, dated as of September 30, 2002, as amended (the "Note" and, together with
the Preferred Shares, the "Convertible Securities"), of the Company.

            WHEREAS the Convertible Securities are convertible into, or may be
exchanged for, Class A Voting Shares, without par value (the "Class A Shares"),
of the Company.

            NOW, THEREFORE, in consideration of the premises and the covenants
hereinafter contained and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and intending to be legally
bound hereby, it is agreed as follows:

            1.    Definitions. (a) Unless otherwise defined herein, the terms
below shall have the following meanings (such meanings being equally applicable
to both the singular and plural form of the terms defined):

            "Affiliate" shall mean, with respect to any specified Person, any
other Person that directly, or indirectly through one or more intermediaries,
Controls, is Controlled by, or is under common Control with, such specified
Person.

            "Agreement" shall mean this Registration Rights Agreement, including
all amendments, modifications and supplements and any exhibits or schedules to
any of the foregoing.

            "Business Day" shall mean any day that is not a Saturday, a Sunday
or a day on which commercial banks are required or permitted by law to be closed
in the City of New York in the State of New York or in the City of Montreal in
the Province of Quebec.

            "Control" (including the terms "Controlled by" and "under common
Control with") means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, as trustee or executor, by
contract or otherwise, including, without limitation, the ownership, directly or
indirectly, of securities having the power to elect a majority of the board of
directors or similar body governing the affairs of such Person.

            "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and all rules and regulations promulgated thereunder.

            "Holder" shall mean the Holder, and any transferee of the Holder to
whom Registrable Securities are permitted to be transferred in accordance with
the terms of this Agreement, and, in each case, who continues to be entitled to
the rights of the Holder hereunder.

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            "NASD" shall mean the National Association of Securities Dealers,
Inc., or any successor entity thereof.

            "Person" shall mean any individual, corporation, partnership, joint
venture, firm, trust, unincorporated organization, government or any agency or
political subdivision thereof or other entity.

            "Registrable Securities" shall mean (a) any Class A Shares (i)
issued by the Company to the Holder upon conversion or exchange of the
Convertible Securities and (ii) held by the Holder and (b) any Securities
issuable or issued or distributed in respect of any of the Class A Shares
identified in clause (a) by way of stock dividend or stock split or in
connection with a combination of shares, recapitalization, reorganization,
merger, consolidation or otherwise. For purposes of this Agreement, (i)
Registrable Securities shall cease to be Registrable Securities when a
Registration Statement covering such Registrable Securities has been declared
effective under the Securities Act by the SEC and such Registrable Securities
have been disposed of pursuant to such effective Registration Statement and (ii)
the Registrable Securities of the Holder shall not be deemed to be Registrable
Securities at any time when the entire amount of such Registrable Securities
then held by the Holder, in the opinion of counsel reasonably satisfactory to
the Company and the Holder, may be resold to the public pursuant to Rule 144 (or
any successor provision then in effect) under the Securities Act in any three
month period.

            "Registration Statement" shall mean the Piggy-Back Registration
Statement.

            "Securities Act" shall mean the Securities Act of 1933, as amended,
and all rules and regulations promulgated thereunder.

            "SEC" shall mean the Securities and Exchange Commission, or any
successor thereto.

            (b)   The following terms have the meanings set forth in the Section
set forth opposite such term:

            TERM                                           SECTION
            ----                                           -------
            Blackout Period                                6
            Class A Shares                                 Recitals
            Indemnified Party                              7(d)
            Indemnifying Party                             7(d)
            Maximum Number of Securities                   2(c)
            Piggy-Back Registration                        2(a)
            Piggy-Back Registration Statement              2(a)

            2.    Piggy-Back Registration.

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            (a)   If the Company proposes to file on its behalf and/or on behalf
of any holder of its securities a registration statement under the Securities
Act on any form (other than a registration statement on Form S-4, F-4 or S-8 or
any successor form for securities to be offered in a transaction of the type
referred to in Rule 145 under the Securities Act or to employees of the Company
pursuant to any employee benefit plan, respectively) for the registration of
Class A Shares (a "Piggy-Back Registration"), it will give written notice to the
Holder at least twenty (20) days before the initial filing with the SEC of such
piggy-back registration statement (a "Piggy-Back Registration Statement"), which
notice shall set forth the intended method of disposition of the securities
proposed to be registered by the Company. The notice shall offer to include in
such filing the aggregate number of shares of Registrable Securities as the
Holder may request.

            (b)   If the Holder desires to have Registrable Securities
registered under this Section 2 the Holder shall advise the Company in writing
within ten (10) days after the date of receipt of such offer from the Company,
setting forth the amount of such Registrable Securities for which registration
is requested. The Company shall thereupon include in such filing the number or
amount of Registrable Securities for which registration is so requested, subject
to paragraph (c) below, and shall use its reasonable efforts to effect
registration of such Registrable Securities under the Securities Act.

            (c)   If the Piggy-Back Registration relates to an underwritten
public offering and the managing underwriter of such proposed public offering
advises that, in its opinion, the amount of Registrable Securities requested to
be included in the Piggy-Back Registration in addition to the securities being
registered by the Company would be greater than the total number of securities
which can be sold in the offering without having a material adverse effect on
the distribution of such securities or otherwise having a material adverse
effect on the marketability thereof (the "Maximum Number of Securities"), then:

            (i)   in the event Company initiated the Piggy-Back Registration,
      the Company shall include in such Piggy-Back Registration first, the
      securities the Company proposes to register and second, the securities of
      all other selling security holders, including the Holder, to be included
      in such Piggy-Back Registration in an amount which together with the
      securities the Company proposes to register, shall not exceed the Maximum
      Number of Securities, such amount to be allocated among such selling
      security holders on a pro rata basis (based on the number of securities of
      the Company held by each such selling security holder including the
      Holder);

            (ii)  in the event any holder of Securities of the Company initiated
      the Piggy-Back Registration, the Company shall include in such Piggy-Back
      Registration first, the securities such initiating security holder
      proposes to register, second, the securities of any other
      selling security holders (including the Holder), in an amount which
      together with the securities the initiating security holder proposes to
      register, shall not exceed the Maximum Number of Securities, such amount
      to be allocated among such other selling security holders on a pro rata
      basis (based on the number of securities of the Company held by each such
      selling security holder including the Holder) and third, any securities
      the Company proposes to register, in an amount which together with
      the securities the

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      initiating security holder and the other selling security holders propose
      to register, shall not exceed the Maximum Number of Securities;

            (d)   The Company will not hereafter enter into any agreement, which
is inconsistent with the rights of priority provided in paragraph (c) above.

            3.    Blackout Periods. The Company shall have the right to delay
the filing or effectiveness of a Registration Statement required pursuant to
Section 2 hereof during no more than two (2) periods aggregating to not more
than 90 days in any twelve-month period (a "Blackout Period") in the event that
(i) the Company would, in accordance with the advice of its counsel, be required
to disclose in the prospectus information not otherwise then required by law to
be publicly disclosed and (ii) in the judgment of the Company's Board of
Directors, there is a reasonable likelihood that such disclosure, or any other
action to be taken in connection with the prospectus, would materially and
adversely affect or interfere with any financing, acquisition, merger,
disposition of assets (not in the ordinary course of business), corporate
reorganization or other similar transaction in which the Company is engaged or
in respect of which the Company proposes to engage in discussions or
negotiations with respect to, or has proposed or taken a substantial step to
commence, or there is an event or state of facts relating to the Company which
is material to the Company the disclosure of which would, in the reasonable
judgment of the Company be adverse to its interests; provided, however, that the
Company shall delay during such Blackout Period the filing or effectiveness of
any Registration Statement required pursuant to the registration rights of the
holders of any Securities of the Company. The Company shall promptly give the
Holder written notice of such Blackout Period containing an approximation of the
anticipated delay.

            4.    Registration Procedures. If the Company is required by the
provisions of Section 2 to use its reasonable efforts to effect the registration
of any of its securities under the Securities Act, the Company will, as
expeditiously as possible:

            (a)   prepare and file with the SEC a Registration Statement with
      respect to such securities and use its reasonable efforts to cause such
      Registration Statement promptly to become and remain effective for a
      period of time required for the disposition of such Securities by the
      holders thereof but not to exceed 30 days (or 90 days in the case of a
      Registration Statement filed pursuant to Rule 415 of the Securities Act);
      provided, however, that before filing such registration statement or any
      amendments thereto (for purposes of this subsection, amendments shall not
      be deemed to include any filing that the Company is required to make
      pursuant to the Exchange Act), the Company shall furnish the
      representatives of the Holder referred to in Section 5(m) copies of all
      documents proposed to be filed;

            (b)   prepare and file with the SEC such amendments and supplements
      to such Registration Statement and the prospectus used in connection
      therewith as may be necessary to keep such Registration Statement
      effective and to comply with the provisions of the Securities Act with
      respect to the sale or other disposition of all securities covered by such
      Registration Statement until the earlier of such time as all of such
      securities have been disposed of in a public offering or the expiration of
      30 days;

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            (c)   furnish to the Holder such number of conformed copies of the
      applicable Registration Statement and each such amendment and supplement
      thereto (including in each case all exhibits), and of a summary prospectus
      or other prospectus, including a preliminary prospectus, in conformity
      with the requirements of the Securities Act, and such other documents, as
      the Holder may reasonably request;

            (d)   use its reasonable efforts to register or qualify the
      securities covered by such Registration Statement under such other
      securities or blue sky laws of such jurisdictions within the United States
      as the Holder shall reasonably request, to keep such registration or
      qualification in effect for so long as such Registration Statement remains
      in effect, and to take any other action which may be reasonably necessary
      to enable the Holder to consummate the disposition in such jurisdictions
      of the securities owned by the Holder (provided, however, that the Company
      shall not be required in connection therewith or as a condition thereto to
      qualify to do business, subject itself to taxation in or to file a general
      consent to service of process in any jurisdiction wherein it would not but
      for the requirements of this paragraph (d) be obligated to do so; and
      provided, further, that the Company shall not be required to qualify such
      Registrable Securities in any jurisdiction in which the securities
      regulatory authority requires that the Holder submit any shares of its
      Registrable Securities to the terms, provisions and restrictions of any
      escrow, lockup or similar agreement(s) for consent to sell Registrable
      Securities in such jurisdiction unless the Holder agrees to do so), and do
      such other reasonable acts and things as may be required of it to enable
      the Holder to consummate the disposition in such jurisdiction of the
      securities covered by such Registration Statement;

            (e)   enter into customary agreements (including if the method of
      distribution is by means of an underwriting, an underwriting agreement in
      customary form) and take such other actions as are reasonably required in
      order to expedite or facilitate the disposition of such Registrable
      Securities;

            (f)   otherwise use its reasonable efforts to comply with all
      applicable rules and regulations of the SEC;

            (g)   use its reasonable efforts to cause all such Registrable
      Securities to be listed on each securities exchange or quotation system on
      which similar securities issued by the Company are listed or traded;

            (h)   give written notice to the Holder:

                  (i)   when such Registration Statement or any amendment
            thereto has been filed with the SEC and when such Registration
            Statement or any post-effective amendment thereto has become
            effective;

                  (ii)  of the issuance by the SEC of any stop order suspending
            the effectiveness of such Registration Statement or the initiation
            of any proceedings for that purpose;

                  (iii) of the receipt by the Company or its legal counsel of
            any notification with respect to the suspension of the qualification
            of the Class A

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            Shares for sale in any jurisdiction or the initiation or threatening
            of any proceeding for such purpose; and

                  (iv)  of the happening of any event that requires the Company
            to make changes in such Registration Statement or the prospectus in
            order to make the statements therein not misleading (which notice
            shall be accompanied by an instruction to suspend the use of the
            prospectus until the requisite changes have been made);

            (i)   use its reasonable efforts to prevent the issuance or obtain
      the withdrawal of any order suspending the effectiveness of such
      Registration Statement at the earliest possible time;

            (j)   furnish to the Holder, without charge, at least one copy of
      such Registration Statement and any post-effective amendment thereto,
      including financial statements and schedules, and, if the Holder so
      requests in writing, all exhibits (including those, if any, incorporated
      by reference);

            (k)   upon the occurrence of any event contemplated by Section
      4(h)(iv) above, promptly prepare a post-effective amendment to such
      Registration Statement or a supplement to the related prospectus or file
      any other required document so that, as thereafter delivered to the
      Holder, the prospectus will not contain an untrue statement of a material
      fact or omit to state any material fact necessary to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading. If the Company notifies the Holder in accordance with Section
      4(h)(iv) above to suspend the use of the prospectus until the requisite
      changes to the prospectus have been made, then the Holder shall suspend
      use of such prospectus and use its reasonable efforts to return to the
      Company all copies of such prospectus other than permanent file copies
      then in the Holder's possession, and the period of effectiveness of such
      Registration Statement provided for above shall be extended by the number
      of days from and including the date of the giving of such notice to the
      date the Holder shall have received such amended or supplemented
      prospectus pursuant to this Section 4(k);

            (l)   make reasonably available for inspection by the Holder, any
      underwriter participating in any disposition pursuant to such Registration
      Statement and any attorney, accountant or other agent retained by the
      Holder or any such underwriter all relevant financial and other records,
      pertinent corporate documents and properties of the Company and cause the
      Company's officers, directors and employees to supply all relevant
      information reasonably requested by such representative or any such
      underwriter, attorney, accountant or agent in connection with the
      registration; and

            (m)   use reasonable efforts to procure the cooperation of the
      Company's transfer agent in settling any offering or sale of Registrable
      Securities, including with respect to the transfer of physical stock
      certificates into book-entry form in accordance with any procedures
      reasonably requested by the Holder or the underwriters.

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            It shall be a condition precedent to the obligation of the Company
to take any action pursuant to this Agreement in respect of the Securities which
are to be registered at the request of the Holder that the Holder shall furnish
to the Company such information regarding the Securities held by the Holder and
the intended method of disposition thereof as the Company shall reasonably
request and as shall be required in connection with the action taken by the
Company.

            5.    Expenses. All expenses incurred in connection with each
registration pursuant to Section 2 of this Agreement, excluding underwriters'
discounts and commissions and broker fees and commissions, but including without
limitation all registration, filing and qualification fees, word processing,
duplicating, printers' and accounting fees (including the expenses of any
special audits or "comfort" letters required by or incident to such performance
and compliance), fees of the NASD or listing fees, messenger and delivery
expenses, all fees and expenses of complying with state securities or blue sky
laws, fees and disbursements of counsel for the Company, shall be paid by the
Company, except that:

            (a)   all such expenses in connection with any amendment or
      supplement to a Registration Statement or prospectus filed more than 30
      days after the effective date of such Registration Statement because the
      Holder has not effected the disposition of the Securities requested to be
      registered shall be paid by the Holder;

            (b)   The Holder shall bear and pay the (i) underwriting commissions
      and discounts and broker fees and commissions applicable to securities
      offered for their account in connection with any registrations, filings
      and qualifications made pursuant to this Agreement and (ii) any fees and
      expenses incurred in respect of counsel or other advisors to the Holder.

            6.    Rule 144 Information. With a view to making available the
benefits of certain rules and regulations of the Commission which may at any
time permit the sale of the Registrable Securities to the public without
registration, the Company agrees to:

            (i)   make and keep public information available, as those terms are
      understood and defined in Rule 144 under the Securities Act; and

            (ii)  use its reasonable efforts to file with the Commission in a
      timely manner all reports and other documents required of the Company
      under the Securities Act and the Exchange Act.

            7.    Indemnification and Contribution.

            (a)   The Company shall indemnify and hold harmless the Holder, the
Holder's directors and officers, each person who participates in the offering of
such Registrable Securities, including underwriters (as defined in the
Securities Act), and each person, if any, who controls the Holder or
participating person within the meaning of the Securities Act, against any
losses, claims, damages or liabilities, joint or several, to which they may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or proceedings

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in respect thereof) arise out of or are based on any untrue or alleged untrue
statement of any material fact contained in such registration statement on the
effective date thereof (including any prospectus filed under Rule 424 under the
Securities Act or any amendments or supplements thereto) or arise out of or are
based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and shall reimburse each the Holder, the Holder's directors and
officers, such participating person or controlling person for any legal or other
expenses reasonably incurred by them (but not in excess of expenses incurred in
respect of one counsel for all of them unless there is an actual conflict of
interest between any indemnified parties) in connection with defending any such
loss, claim, damage, liability or action; provided, however, that the indemnity
agreement contained in this Section 8 shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company; provided, further,
that the Company shall not be liable to the Holder, the Holder's directors and
officers, participating person or controlling person in any such case for any
such loss, claim, damage, liability or action to the extent that it arises out
of or is based upon an untrue statement or alleged untrue statement or omission
or alleged omission made in connection with such registration statement,
preliminary prospectus, final prospectus or amendments or supplements thereto,
in reliance upon and in conformity with information furnished expressly for use
in connection with such registration by the Holder, the Holder's directors and
officers, participating person or controlling person.

            (b)   If the Holder joins in a Registration Statement, the Holder
shall indemnify and hold harmless the Company, each of its directors and
officers, each person, if any, who controls the Company within the meaning of
the Securities Act, and each agent and any underwriter for the Company (within
the meaning of the Securities Act) against any losses, claims, damages or
liabilities, joint or several, to which the Company or any such director,
officer, controlling person, agent or underwriter may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or proceedings in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of any material fact contained
in such registration statement on the effective date thereof (including any
prospectus filed under Rule 424 under the Securities Act or any amendments or
supplements thereto) or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in such registration
statement, preliminary or final prospectus, or amendments or supplements
thereto, in reliance upon and in conformity with information furnished by or on
behalf of the Holder expressly for use in connection with such Registration
Statement; and the Holder shall reimburse any legal or other expenses reasonably
incurred by the Company or any such director, officer, controlling person, agent
or underwriter (but not in excess of expenses incurred in respect of one counsel
for all of them unless there is an actual conflict of interest between any
indemnified parties) in connection with defending any such loss, claim, damage,
liability or action; provided, however, that the indemnity agreement contained
in this Section 7(b) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Holder, and provided, further, that the liability of the
Holder hereunder shall be limited to the aggregate proceeds received by the
Holder in connection with

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the sale of Registrable Securities pursuant to a Piggy-Back Registration
Statement under the Securities Act.

            (c)   If the indemnification provided to any Person for in this
Section 7 (the "Indemnified Party") from the indemnifying party (the
"Indemnifying Party") is unavailable to an Indemnified Party hereunder in
respect of any losses, claims, damages, liabilities or expenses referred to
therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the Indemnifying
Party and Indemnified Parties in connection with the actions which resulted in
such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations. The relative fault of such Indemnifying Party
and Indemnified Parties shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact, has
been made by, or relates to information supplied by, such Indemnifying Party or
Indemnified Parties, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such action. The amount paid
or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include any legal or other
fees or expenses reasonably incurred by such party in connection with any
investigation or proceeding. If the allocation provided in this paragraph (c) is
not permitted by applicable law, the parties shall contribute based upon the
relevant benefits received by the Company from the initial issuance of the
Registrable Securities to the Holder on the one hand and the proceeds received
by the Holder from the sale of the Registrable Securities pursuant to a
Piggy-Back Registration Statement on the other.

            The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 7(c) were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding paragraph.
No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

            (d)   Any Indemnified Party agrees to give prompt written notice to
the Indemnifying Party after the receipt by the Indemnified Party of any written
notice of the commencement of any action, suit, proceeding or investigation or
threat thereof made in writing for which the Indemnified Party intends to claim
indemnification or contribution pursuant to this Agreement; provided, that the
failure so to notify the Indemnified Party shall not relieve the Indemnifying
Party of any liability that it may have to the Indemnifying Party hereunder
unless such failure is materially prejudicial to the Indemnifying Party. If
notice of commencement of any such action is given to the Indemnifying Party as
above provided, the Indemnifying Party shall be entitled to participate in and,
to the extent it may wish, to assume the defense of such action at its own
expense, with counsel chosen by it and reasonably satisfactory to such
Indemnified Party. The Indemnified Party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be paid by the Indemnified Party unless (i)
the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails
to assume the defense of such action, or (iii) the named parties to any such
action (including any impleaded parties) have been advised by such counsel that
either

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(A) representation of such Indemnified Party and the Indemnifying Party by the
same counsel would be inappropriate under applicable standards of professional
conduct or (B) there are one or more legal defenses available to it which are
substantially different from or additional to those available to the
Indemnifying Party. No Indemnifying Party shall be liable for any settlement
entered into without its written consent.

            (e)   The agreements contained in this Section 7 shall survive the
transfer of the Registered Securities by the Holder and sale of all the
Registrable Securities pursuant to any registration statement and shall remain
in full force and effect, regardless of any investigation made by or on behalf
of the Holder or such director, officer or participating or controlling Person.

            8.    Certain Additional Limitations on Registration Rights.
Notwithstanding the other provisions of this Agreement, the Company shall not be
obligated to register the Registrable Securities of the Holder (i) if the Holder
or any underwriter of such Registrable Securities shall fail to furnish to the
Company necessary information in respect of the distribution of such Registrable
Securities, or (ii) if such registration involves an underwritten offering, such
Registrable Securities are not included in such underwritten offering on the
same terms and conditions as shall be applicable to the other Securities being
sold through underwriters in the registration or the Holder fails to enter into
an underwriting agreement in customary form with the underwriter or underwriters
selected for such underwritten offering. In addition, the Holder agrees not to
effect any public sale or distribution of any Registrable Securities or of any
securities convertible into or exchangeable or exercisable for such Registrable
Securities, including a sale pursuant to Rule 144 under the Securities Act and
to enter into a customary lock-up agreement with the managing underwriter for an
offering, during the 180-day period beginning on the effective date of any
Piggy-Back Registration Statement or other underwritten offering (initiated by
the Company) (except as part of such registration), and the Company agrees to
use its reasonable efforts to cause its executive officers to enter into a
lock-up agreement of the same term, in each case if and to the extent requested
by the managing underwriter for such offering and if the Company and its
directors, executive officers and other significant stockholders enter into
similar agreements.

            9.    No Inconsistent Agreements. The Company will not hereafter
enter into any agreement with respect to its securities, which is inconsistent
in any material respects with the rights granted to the Holder in this
Agreement.

            10.   Miscellaneous.

            (a)   Specific Performance. The parties hereto agree that
irreparable damage would occur in the event any provision of this Agreement was
not performed in accordance with the terms hereof and that the parties hereto
shall be entitled to specific performance of the terms hereof, in addition to
any other remedy at law or in equity.

            (b)   Amendments and Waivers; Assignment. (i) Any provision of this
Agreement may be amended or waived if, and only if, such amendment or waiver is
in writing and signed, in the case of an amendment, by the Company and the
Holder or, in the case of a waiver, by the party or parties against whom the
waiver is to be effective.

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            (ii)  No failure or delay by any party in exercising any right,
power or privilege hereunder (other than a failure or delay beyond a period of
time specified herein) shall operate as a waiver thereof and no single or
partial exercise thereof shall preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. The rights and remedies
herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

            (c)   Notice Generally. All notices, request, claims, demands and
other communications hereunder shall be in writing and shall be given (and shall
be deemed to have been duly given upon receipt) by delivery in person, by
courier service, by fax or by registered or certified mail (postage prepaid,
return receipt requested) to the respective parties at the following addresses
(or at such other address for a party as shall be specified by notice given in
accordance with this Section 10(c):

            (i)   If to the Holder, at:

                  46A, avenue J.F. Kennedy
                  1855 Luxembourg
                  Luxembourg
                  attention:  Manacor / Marco Dijkerman
                  Facsimile: 011-352-421961

            (ii)  If to the Company, at

                  1240 Phillips Square
                  Montreal Quebec
                  H3B 3H4
                  Attention: General Counsel
                  Facsimile: (514) 397-2577

or at such other address as may be substituted by notice given as herein
provided.

            (d)   Successors and Assigns; Third Party Beneficiaries. This
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of the parties hereto as hereinafter provided. Except as
provided in Section 7, no Person other than the parties hereto and their
successors and permitted assigns is intended to be a beneficiary of this
Agreement.

            (e)   Headings. The headings and subheadings in this Agreement are
included for convenience and identification only and are in no way intended to
describe, interpret, define or limit the scope, extent or intent of this
Agreement or any provision hereof.

            (f)   Governing Law; Jurisdiction. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of New York.

            (i)   Any claim, action, suit or proceeding seeking to enforce any
      provision of, or based on any matter arising out of or in connection with,
      this Agreement or the transactions contemplated hereby may be heard and
      determined in any New York state or federal court sitting in The City of
      New York, County of Manhattan, and each of the

                                       11
<PAGE>

      parties hereto hereby consents to the non-exclusive jurisdiction of such
      courts (and of the appropriate appellate courts therefrom in any such
      claim, action, suit or proceeding) and irrevocably waives, to the fullest
      extent permitted by law, any objection that it may now or hereafter have
      to the laying of venue of any such claim, action, suit or proceeding in
      any such court or that any such claim, action, suit or proceeding that is
      brought in any such court has been brought in an inconvenient forum.

            (ii)  Subject to applicable law, process in any such claim, action,
      suit or proceeding may be served on any party anywhere in the world,
      whether within or without the jurisdiction of any such court. Without
      limiting the foregoing and subject to applicable law, each party agrees
      that service of process on such party as provided in Section 10(c) shall
      be deemed effective service of process on such party. Nothing herein shall
      affect the right of any party to serve legal process in any other manner
      permitted by law or at equity. WITH RESPECT TO ANY SUCH CLAIM, ACTION,
      SUIT OR PROCEEDING IN ANY SUCH COURT, EACH OF THE PARTIES IRREVOCABLY
      WAIVES AND RELEASES TO THE OTHER ITS RIGHT TO A TRIAL BY JURY, AND AGREES
      THAT IT WILL NOT SEEK A TRIAL BY JURY IN ANY SUCH PROCEEDING.

            (g)   Severability. If any term or other provision of this Agreement
is held to be invalid, illegal or incapable of being enforced by any rule of
Law, or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions is not affected in any manner materially
adverse to any party. Upon a determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in a mutually acceptable manner in
order that the transactions contemplated hereby be consummated as originally
contemplated to the fullest extent possible.

            (h)   Entire Agreement. This Agreement constitutes the entire
agreement among the parties hereto pertaining to the subject matter hereof and
supersedes all prior agreements and understandings pertaining thereto.

            (i)   Cumulative Remedies. The rights and remedies provided by this
Agreement are cumulative and the use of any one right or remedy by any party
shall not preclude or waive its right to use any or all other remedies. Said
rights and remedies are given in addition to any other rights the parties may
have by law, statute, ordinance or otherwise.

            (j)   Construction. Each party hereto acknowledges and agrees it has
had the opportunity to draft, review and edit the language of this Agreement and
that no presumption for or against any party arising out of drafting all or any
part of this Agreement will be applied in any Dispute relating to, in connection
with or involving this Agreement. Accordingly, the parties hereto hereby waive
the benefit of any rule of law or any legal decision that would require, in
cases of uncertainty, that the language of a contract should be interpreted most
strongly against the party who drafted such language.

                        [SIGNATURE APPEARS ON NEXT PAGE]

                                       12
<PAGE>

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

                               HENRY BIRKS & SONS INC.

                               By:  /s/ Thomas A. Andruskevich
                                    --------------------------------------------
                                    Name:  Thomas A. Andruskevich
                                    Title: President and Chief Executive Officer

                               PRIME INVESTMENTS SA

                               By:  /s/ Marco Dijkerman
                                    --------------------------------------
                                    Name:  Marco Dijkerman
                                    Title:

                                       13<PAGE>
                                                                  Exhibit 10.26

                            SECURED CONVERTIBLE NOTE

                                       OF

                             HENRY BIRKS & SONS INC.
                             A CANADIAN CORPORATION

                                        September 30, 2002

     FOR VALUE RECEIVED, the undersigned HENRY BIRKS & SONS INC., a Canadian
corporation (the "CORPORATION") promises to pay to the order of PRIME
INVESTMENTS SA (hereafter with any subsequent holder(s), the "HOLDER") at 1240
Phillips Square, Montreal, Quebec H3B 3H4, or at such other place or to such
other party as the Holder may from time to time designate in writing, the
principal sum of TWO MILLION FIVE HUNDRED THOUSAND UNITED STATES DOLLARS
(2,500,000), together with interest on the principal balance outstanding as
provided below. All payments hereunder shall be in lawful currency of the United
States and immediately available Funds.

1.   SECURITIES PURCHASE AGREEMENT AND HIPOTHEC

     This Secured Convertible Note (the "NOTE") is being issued pursuant to the
terms of the Securities Purchase Agreement dated as of August 15, 2002 between
the Corporation and the Investors named therein including the initial Holder
hereof (as such agreement may be, amended, restated, modified or waived in
accordance with its terms (the "SECURITIES PURCHASE AGREEMENT"), and is secured
by the collateral, including the Mayor's Present Shares and the Mayor's Future
Shares, and such terms are defined in and as such security is granted in and
governed by that certain Deed of Hypotec dated as of August 15, 2002 between the
Corporation in favor of National Bank Trust Inc. (the "TRUSTEE"), that certain
General Security Agreement dated as of August 15, 2002 between the Company and
the Trustee and that certain Deed of Mortgage dated as of August 15, 2002
between the Company and the Trustee in the forms attached as Exhibits C, D and E
to the Securities Purchase Agreements.

2.   INTEREST

     A. GENERAL. Unpaid Principal of this Note shall not bear interest from
September 30, 2002 until September 29, 2007 unless under the applicable tax laws
of Canada, interest is imputed to the Holder, in which case, the unpaid
principal of this Note shall bear interest at the lowest applicable imputed rate
permitted by law, payable on each anniversary of the date this Note was first
issued. Commencing on September 30, 2007 and ending on the date the unpaid
principal Note is paid in full, the unpaid amount of this Note shall bear
interest at the rate of six percent (6.0%) per annum, which amount shall be
payable on each Payment Date (as defined).

<PAGE>

     B.   INTEREST AFTER DEFAULT

          i. Overdue principal and (to the extend permitted by applicable law)
interest, if any, on this Note and all other overdue amounts payable hereunder
shall bear interest compounded monthly and payable on demand at a rate per annum
equal to three percent (3.0%) above the rate set forth in Section 2(a) hereof
until such amounts shall be paid in full (after, as well as before judgment, in
any).

          ii. During the continuance of an Event of Default (as defined), the
unpaid principal of this Note not overdue shall, until such Event of Default has
been cured or remedied or such Event of Default has been waived bear interest at
a rate per annum equal to three percent (3.0%) above the rate set forth in
Section 2(a) hereof.

3.   PRINCIPAL REPAYMENT

     a. GENERAL. If this Note has not been prepaid or converted, in whole or in
part as permitted hereby, on or before 5:00 p.m. Montreal, Canada time on
September 29, 2007, the unpaid principal balance outstanding on such date, shall
be repaid in three equal installments on September 30, 2007, 2008 and 2009,
respectively, in each case with any accrued and unpaid interest. (Each of such
dates shall be referred to as a "Payment Date".)

     b.   OPTIONAL PREPAYMENT AT THE ELECTION OF THE CORPORATION.

          i. At the Corporation's election at any time on or before September
29, 2004, the Corporation may elect to prepay all or any part of this Note for
an amount (the "PREPAYMENT AMOUNT") equal to the sum of (A) the principal amount
which the Corporation has elected to prepay, together with all accrued and
unpaid interest thereon through the Optional Repayment Date and (B) a premium
equal to (I) ten percent (10%) of the principal to be prepaid, if such
prepayment is made on or before September 30, 2003 or (II) a premium equal to
twenty percent (20%) of the principal to be prepaid, if such prepayment is made
after September 30, 2003 and before September 29, 2004.

          ii. Not less than twenty (20) days prior to the date (the "OPTIONAL
PREPAYMENT DATE"), the Corporation prepays the Note as permitted by this Section
2(b) the Corporation shall mail to the Holder written notice (the "OPTIONAL
PREPAYMENT NOTICE") setting forth the following information: (A) the principal
amount of the Note which the Corporation has elected to prepay, (B) the amount
of any accrued, but unpaid interest on the principal amount of the Note to be
prepaid through the Optional Prepayment Date and (C) the Optional Prepayment
Date. Subject to Section 4 hereof, on the Optional Prepayment Date, the
Corporation shall pay the Optional Prepayment Amount to the Holder in cash
together with all accrued but unpaid interest on the principal amount so prepaid
and the Holder shall make a notation on the reverse side of this Note indicating
the amount of the principal and interest so prepaid.

<PAGE>

          iii. Notwithstanding the Holder's receipt of an Optional Prepayment
Notice, the Holder of this Note may exercise its conversion rights, in whole or
in part, in accordance with Section 4 hereof on any date prior to the Optional
Prepayment Date.

     c.   MANDATORY OFFER TO PREPAY THE NOTES.

          i. The Corporation shall be required to offer to the Holder of this
Note the right to have the Note prepaid in whole or in part, at the Holder's
election, in the event of:

             (A) a merger, amalgamation, consolidation, combination, share
purchase or share exchange of voting securities of the Corporation by any person
or entity, other than

                 a merger, amalgamation, consolidation, combination, share
purchase or share exchange that would result in the voting securities of the
Corporation outstanding immediately prior thereto continuing to be held by the
same persons or entities in substantially the same proportions and continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) (aa) more than fifty percent (50%) of the
combined voting power of the Corporation or such surviving entity outstanding
immediately after such merger, amalgamation, consolidation, combination, share
purchase or share exchange if the Common Shares of the Corporation or such
surviving entity outstanding immediately after such merger, amalgamation,
consolidation, combination, share purchase or share exchange are not publicly
traded and listed on a U.S. stock exchange (or a Canadian stock exchange) or
quoted on the National Association of Securities Dealers Automated Quotation
System ("NASDAQ"), National Market System ("NMS") or Small Cap (the "NASDAQ-NMS
OR SMALL CAP") or (bb) not less than twenty-five percent (25%) of the combined
voting power of the Corporation or such surviving entry outstanding immediately
after such merger, amalgamation, consolidation, combination, share purchase or
share exchange of the Common Shares of the Corporation or such surviving entity
outstanding immediately after such merger, amalgamation, consolidation,
combination, share purchase or share exchange are publicly traded and listed on
a U.S. stock exchange (or a Canadian stock exchange) or quoted on the NASDAQ-NMS
or Small Cap; or

                 a merger, amalgamation, consolidation, combination, share
purchase or share exchange effected to implement a recapitalization of the
Corporation (or similar transaction) in which a person who was the beneficial
owner of more than fifty percent (50%) of the Corporation's voting securities
prior to the merger, amalgamation, consolidation, combination, share purchase or
share exchange retains or acquires, as the case may be, beneficial ownership of
(aa) more than fifty percent (50%) of the combined voting power of the
Corporation's outstanding securities after the merger, amalgamation,
consolidation, combination, share purchase or share exchange, if immediately
after such merger, amalgamation, consolidation, combination, share purchase or
share exchange, the Corporation's Common Shares are not publicly traded and
listed on a U.S. stock exchange (or a Canadian stock exchange) or quoted on the

<PAGE>

NASDAQ-NMS or Small Cap or (bb) twenty-five percent (25%) or more of the
combined voting power of the Corporation's outstanding securities after such
merger or combination, if immediately after such merger or combination, the
Corporation's Common Shares are publicly traded and listed on a U.S. securities
exchange (or a Canadian stock exchange) or quoted on the NASDAQ-NMS or Small
Cap; or

             B) the sale of other disposition (unless captured in (A) above) by
the Corporation of all or substantially all of the Corporation's assets.

          ii. The Corporation shall give the Holder written notice (an "OFFER TO
PREPAY") of any impending transaction of the type described in Section 3(c)(i)
not later than twenty (20) days prior to the shareholders' meeting called to
approve such transaction, or twenty (20) days prior to the closing of such
transaction, whichever is earlier, and shall also notify the Holder of the final
approval of such transaction. The Offer to Prepay shall describe the material
terms and conditions of the impending transaction and the provisions of this
Section 3(c) and the Corporation shall thereafter give the Holder prompt notice
of any material changes thereto. The transaction shall in no event take place
sooner than twenty (20) days after the Corporation has given the Offer to Prepay
or sooner than ten (10) days after the Corporation has given notice of any
material changes provided herein; provided, however, that such periods may be
shortened upon the written consent of the Holder.

          iii. In the event the requirements of this Section 3(c) are not
complied this Corporation shall forthwith either:

             (A) cause the closing of the applicable transaction to be postponed
until such time as the requirements of this Section 3(c) have been complied
with; or

             (B) cancel such transaction, in which event the rights of the
Holder and the terms of this Note shall revert to and be the same as existed
immediately prior to the first notice provided under Section 3(c) hereof.

          iv. At any time after its receipt of an Offer to Prepay, the Holder
may accept such offer by notifying the Corporation in writing (the "ACCEPTANCE")
setting forth the principal amount of the Note to be prepaid and the settlement
date thereof, which shall be no sooner than the closing date of the transaction
described in the Offer to Prepay. At the settlement, the Corporation shall
prepay in cash in U.S. Dollars, the principal amount of the Holder's Note as set
forth in the Acceptance, together with all accrued and unpaid interest through
the settlement date.

     D.   SUCCESSOR COMPANIES.

          The Corporation shall not enter into any of the transactions
contemplated in Section 3(c)(i)(A) hereof unless:

<PAGE>

          (A) the surviving entity shall execute, prior to or contempor-aneously
with the consummation of such transaction, such instruments as in the opinion of
the counsel to the Corporation and the Holder, acting reasonably, are necessary
or advisable to evidence the assumption by the surviving entity of all of the
obligations of the Corporation, as the case may be, including the assumption by
the surviving entity of the liability for the due and punctual payment of the
Note and the interest thereon and all other moneys payable under the Note;

          (B) such transaction shall be upon such terms as to preserve and not
to impair any of the rights and powers of the Holder thereunder; and

          (C) no condition or event shall exist as to the Corporation or the
surviving entity either at the time of or immediately after such transaction and
after giving full effect thereto or immediately after the surviving entity
complying with the provisions of Section 3(d)(i)(A) above with constitutes or
would constitute an Event of Default hereunder.

4.   CONVERSION. The Holder of this Note shall have the right (the "Conversion
Right") to convert the principal amount of this Note into the Corporation's
Common Shares (the "Common Shares") as set forth in this Section 4.

     a. Right to Convert. At the option of the Holder thereof, at any time after
the date of issuance of this Note, at the office of the Corporation or any
transfer agent for such shares, the Holder may convert the unpaid principal
amount of this Note, or any portion thereof, into such number of fully paid and
non-assessable Common Shares of the Corporation, without par value (the "COMMON
SHARES") as is determined by dividing the principal amount of this Note which
such Holder has elected to convert by the conversion price ("CONVERSION PRICE")
determined as hereafter provided, in effect on the date the Note is surrendered
for conversion. The initial Conversion Price shall be US$4.9396 provided,
however, that the Conversion Price for the Series A Preferred Stock shall be
subject to adjustment as set forth in Section 4(d).

     b. Automatic Conversion. The unpaid principal balance of this Note shall
automatically be converted into Common Shares at the Conversion Price at the
time in effect for this Note immediately upon the Corporation's sale of its
Common Shares in a bona fide firm commitment underwritten public offering
pursuant to a registration statement filed with, and declared effective by, the
Securities and Exchange Commission under the United States Securities Act of
1933, as amended (the "US SECURITIES ACT") or under a prospectus filed with, and
receipted by, the applicable securities commissions or similar regulatory
authorities in Canada (the "CANADIAN PROSPECTUS"), raising aggregate net
proceeds to the Company of at least US $55,000,000 at a minimum share price of
US $4.94 per Common Share (adjusted to reflect subsequent stock dividends, stock
splits or recapitalization) and in which the Common Shares are listed on a US
stock exchange or a Canadian stock exchange or quoted on the NASDAQ-NMS or Small
Cap.

<PAGE>

     c. Mechanics of Conversion. Before any Holder shall be entitled to convert
the Note, or any portion thereof, into Common Shares, such Holder shall
surrender this Note, together with a Notice of Conversion in substantially the
form annexed hereto, at the office of the Corporation, and shall give written
notice to the Corporation at its principal corporate office, of the election to
convert the same and shall state therein the name or names in which the
certificate or certificates for Common Shares are to be issued. The Corporation
shall, as soon as practicable thereafter, but in no event more than three (3)
business days after the receipt of this Note and the Notice of Conversion issue
and deliver at such office to such Holder, or to the nominee or nominees of such
Holder, a certificate or certificates for the number of Common Shares to which
such Holder shall be entitled as aforesaid and a new Note, evidencing the unpaid
principal balance of the Note. Such conversion shall be deemed to have been made
immediately prior to the close of business on the date of such surrender of the
Note to be converted, and the person or persons entitled to receive the Common
Shares issuable upon such conversion shall be treated for all purposes as the
record holder or holders of such Common Shares as of such date. If the
conversion is in connection with an underwritten offering of securities
registered pursuant to the US Securities Act of 1933, as amended or made
pursuant to a Canadian Prospectus, the conversion may, at the option of the
Holder tendering this Note, in whole or in part, for conversion, be conditioned
upon the closing with the underwriters of the sale of securities pursuant to
such offering, in which event the persons entitled to receive the Common Shares
upon conversion of this Note shall not be deemed to have converted this Note
until immediately prior to the closing of such sale of securities.

     d. Conversion Price Adjustments of Preferred Shares for Certain Dilutive
Issuances and Combinations. The Conversion Price of this Note shall be subject
to adjustment from time to time as follows:

        i. Stock Splits or Subdivisions. In the event the Corporation should at
any time or from time to time after August 20, 2002 (the "CLOSING DATE") fix a
record date for the effectuation of a split or subdivision of the outstanding
Common Shares or the determination of holders of Common Shares entitled to
receive a dividend or other distribution payable in additional Common Shares or
other securities or right convertible into, or entitling the holder thereof to
receive directly or indirectly, additional Common Shares (hereinafter referred
to as "COMMON SHARE EQUIVALENTS") without payment of any consideration by such
holder for the additional Common Shares or the Common Share Equivalents
(including the additional Common Shares issuable upon conversion or exercise
thereof), then, as of such record date (or the date of such dividend
distribution, split or subdivision if no record date is fixed), the Conversion
Price of this Note shall be appropriately decreased so that the number of Common
Shares issuable on conversion of the principal amount of this Note shall be
increased in proportion to such increase of the aggregate of Common Shares
outstanding and those issuable with respect to such Common Share Equivalents.

        ii. Combinations. If the number of Common Shares outstanding at any time
after the Closing Date is decreased by a combination of the outstanding

<PAGE>

Common Shares, then, following the record date of such combination, the
Conversion Price for this Note shall be appropriately increased so that the
number of Common Shares issuable on conversion of the unpaid principal amount of
this Note shall be decreased in proportion to such decrease in outstanding
shares.

        iii. Other Distributions. In the event the Corporation shall declare a
distribution payable in securities of other persons, evidences of indebtedness
issued by the Corporation or other persons, assets (excluding cash dividends) or
options or rights not referred to in Section 4(d)(i), then, in each such case,
upon the conversion of this Note, the Holder of this Note shall be entitled to a
proportionate share of any such distribution as though such Holder were the
holder of the number of Common Shares of the Corporation into which such
Holder's Note is convertible as of the record date fixed for the determination
of the holders of Common Shares of the Corporation entitled to receive such
distribution.

        iv. Recapitalizations. If at any time or from time to time there shall
be recapitalization of the Common Shares (other than a subdivision, combination
or merger or sale of assets transaction provided for elsewhere in Section 2(c),
provision shall be made so that the Holder of this Note shall thereafter be
entitled to receive upon conversion of this Note the number of shares or other
securities or property of the Corporation or otherwise, to which a holder of
Common Shares deliverable upon conversion would have been entitled on such
recapitalization. In any such case, appropriate adjustment shall be made in the
application of the provisions of this Section 4(d)(iv) with respect to the
rights of the holders of this Note after the recapitalization to the end that
the provisions of this Section 4(d) (including adjustment of the Conversion
Price then in effect and the number of shares purchasable upon conversion of
this Note) shall be applicable after that event as nearly equivalent as may be
practicable.

        v. No Impairment. The Corporation will not, by amendment of its Article
or By-laws or through any reorganization, recapitalization, transfer of assets,
consolidation merger, 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 to be observed or performed hereunder by the Corporation, but will at
all times in good faith assist in the carrying out of all the provisions of this
Section 4 and in the taking of all such action as may be necessary or
appropriate in order to protect the Conversion Rights of the Holder of this Note
against impairment.

        vi. No Fractional Shares and Certificate as to Adjustments.

            (A) No fractional shares shall be issued upon the conversion of this
Note, and the number of Common Shares to be issued shall be rounded to the
nearest whole share. Whether or not fractional shares are issuable upon such
conversion shall be determined on the basis of the principal amount of this Note
which the Holder is at the time converting into Common Shares and the number of
Common Shares issuable upon such aggregate conversion.

<PAGE>

            (B) Upon the occurrence of each adjustment or readjustment of the
Conversion Price of this Note pursuant to this Section 4(d), the Corporation, at
its expense, shall promptly compute such adjustment or readjustment in
accordance with the terms hereof and prepare and furnish to the Holder a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based. The Corporation
shall, upon the written request at any time of the Holder, furnish or cause to
be furnished to such holder a like certificate setting forth (I) such adjustment
and readjustment, (II) the Conversion Price for this Note at the time in effect,
and (III) the number of Common Shares and the amount, if any, of other property
which at the time would be received upon the conversion of the unpaid principal
balance of this Note.

        vii. Notices of Record Date. In the event of any taking by the
Corporation of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any
dividend (other than a cash dividend) or other distribution, any right to
subscribe for, purchase or otherwise acquire any shares of any class or any
other securities or property, or to receive any other right, the Corporation
shall mail to the Holder, at least twenty (20) days prior to the date specified
therein, a notice specifying the date on which any such record is to be taken
for the purpose of such dividend, distribution or right, and the amount and
character of such dividend, distribution or right.

        viii. Reservation of Common Shares Issuable Upon Conversion. The
Corporation shall at all times reserve and keep available out of its authorized
but unissued Common Shares, solely for the purpose of effecting the conversion
of this Note, such number of Common Shares as shall from time to time be
sufficient to effect the conversion of the entire unpaid principal balance of
this Note; and if at any time the number of authorized but unissued Common
Shares shall not be sufficient to effect the conversion of all then outstanding
unpaid principal balance of this Note, in addition to such other remedies as
shall be available to the Holder of this Note, the Corporation will take such
corporate action as may, in the opinion of its counsel, be necessary to increase
its authorized but unissued Common Shares to such number of shares as shall be
sufficient for such purposes, including, without limitation, engaging in best
efforts to obtain the requisite shareholder approval of any necessary amendment
to the Corporation's Articles.

5.   DEFAULT AND ENFORCEMENT

     a. Each of the following events shall constitute an event of default (an
"EVENT OF DEFAULT"):

        i. if the Corporation does not pay as and when due principal and/or
interest of this Note when it becomes due, or on a prepayment date, or on a
settlement date as the case may be, unless this Note has been converted in
accordance with Section 4;

<PAGE>

        ii. if an order is issued or a resolution is adopted for the purpose of
winding-up the Corporation, (ii) if the Corporation files a proposal or makes an
assignment of its property for the benefit of its creditors, (iii) if a petition
in bankruptcy is filed against the Corporation or any of its subsidiaries and
such petition is not dismissed within thirty days of the filing thereof, if a
trustee is appointed for the Corporation pursuant to the Bankruptcy and
Insolvency Act (Canada) or pursuant to any other legislation relating to
insolvent persons, or if an application is filed pursuant to the Companies'
Creditors Arrangement Act (Canada), or (iv) if a seizure is made (unless the
seizure is validly contested by the Corporation) or a judgment is executed
against all or a substantial part of the Corporation's property;

        iii. if the Corporation is no longer legally in existence or if it
ceases to operate within the ordinary course of business;

        iv. if the Corporation fails to carry out or comply with any other
undertaking or any other condition set forth herein (including, but not limited
to, if the Corporation fails to offer to the Holder of this Note, the right to
have the Note prepaid in whole or in part, at the Holder's election as provided
in Section 3(c)(i) hereof), or breaches in any material respect the
Corporation's Articles insofar as they relate to the Series A Preferred Shares
referred to therein or the Security Agreements, (as such terms are defined in
the Securities Purchase Agreement) and such failure or breach continues for a
period of thirty (30) days after the Corporation has received a notice to that
effect from the Holder;

        v. if the Corporation fails to pay when due an amount equal to $500,000
under the Diamond Conditional Sale Agreement or the Diamond Supply Agreement and
such failure shall continue for a period of thirty (30) days after the
Corporation has received written notice to that effect from the Holder; or

        vi. subject to subclause (v) above, if the New York Diamond Dealers Club
(or any successor thereto) determines that there has been a material breach by
the Corporation under the Diamond Supply Agreement.

     b. If an Event of Default occurs or continues, the Holder shall have the
option, in addition to all its other rights and recourses, to require the
immediate payment by the Corporation of the principal of and any accrued
interest on this Note, and the Corporation shall forthwith pay such amounts to
the Holder and, when such payment shall have been made, it shall be deemed to
release the Corporation from its obligations pursuant hereto.

         c. The exercise by the Holder of any right or recourse pursuant to an
Event of Default or to the failure to perform an undertaking or obligation set
forth herein shall not imply a waiver of any right or recourse which is then
available to the Holder nor shall it affect or exclude such right or recourse.

6.   NOTE REGISTER

<PAGE>

     a. The Corporation shall keep at its principal executive office a register
(herein sometimes refer to as the "NOTE REGISTER"), in which, subject to such
reasonable regulations as it may prescribe, but at its expense (other than
transfer taxes, if any) the Corporation shall provide for the registration and
transfer of this Note.

     b. Whenever this Note shall be surrendered at the principal executive
office of the Corporation for exchange, accompanied by a written instrument of
transfer inform reasonably satisfactory to the Corporation duly executed by the
Holder hereof or his or its attorney duly authorized in writing, the Corporation
shall execute and deliver in exchange therefore a new Note as may be requested
by such Holder, in the same aggregate unpaid principal amount and payable on the
same date as the principal amount of the Note so surrendered; each such new Note
shall be dated as of the date to which interest has been paid on the unpaid
principal amount of the Note so surrendered and shall be in such principal
amount and registered in such name or names as such Holder may designate in
writing.

     c. Upon receipt by the Corporation of evidence reasonably satisfactory to
it of the loss, theft, destruction or mutilation of this Note and of indemnity
reasonably satisfactory to it of the loss, theft, destruction or mutilation of
this Note and of indemnity reasonably satisfactory to it, and upon reimbursement
to the Corporation of all reasonable expenses incidental thereto, and upon
surrender and cancellation of this Note (in case of mutilation) the Company will
make and deliver in lieu of this Note a new Note of like tenor and unpaid
principal amount and dated as of the date to which interest has been paid on the
unpaid principal amount of this Note in lieu of which such new Note is made and
delivered.

7.   NOTICES

     Every notice or other communication required pursuant hereto shall be given
in writing and sent by telecopier (provided that a copy is subsequently sent by
messenger and that its receipt is confirmed) or delivered by hand:

       i.     to the Holder:
              Attention:
              Telecopier:

       ii.    To the Corporation:

              HENRY BIRKS & SONS INC.
              1240 Phillips Square
              Montreal, Quebec
              H3B 3H4
              Attention: President
              Telecopier number: (514) 337-2509

              with a copy to:

<PAGE>

              HENRY BIRKS & SONS INC.
              1240 Phillips Square
              Montreal, Quebec
              H3B 3H4
              Attention: Vice President, General Counsel and Corporate Secretary
              Telecopier number: (514) 337-2509; and

or, as regards each party, to any other address or telecopier number which the
party may indicate by means of a written notice sent to the other party.

       iii. Every notice or communication contemplated in Section 6 shall be
deemed to have been received on the business day after it was sent.

8. GOVERNING LAW. This Note shall be governed and interpreted in accordance with
the laws of Quebec and the laws of Canada applicable hereto.

9. SUCCESSORS AND ASSIGN. Subject to the restrictions on transfer described in
Section 12 below, the rights and obligations of the Corporation and Holder of
this Note shall be binding upon and benefit the successors, assigns, heirs,
administrators and transferees of the parties.

10. WAIVER AND AMENDMENT. Any provision of this Note may be amended, waived or
modified upon the written consent of the Company and the Holder.

11. TRANSFER OF THIS NOTE. The Holder may transfer this Note; (i) to a person
that directly or indirectly controls, is controlled by or is under common
control with such Holder; or (ii) in the Event of Default pursuant to Section 5.
In all other circumstances, the Company's consent shall be required to transfer
this Note, which consent shall not be unreasonably withheld.

12. UNCONDITIONAL OBLIGATION: FEES, WAIVERS OTHER.

     a. The obligations to make the payments provided for in this Note are
absolute and unconditional and not subject to any defense, set-off,
counterclaim, rescission, recoupement or adjustment whatsoever.

     b. No forbearance, indulgence, delay or failure to exercise any right or
remedy with respect to this Note shall operate as a waiver, nor as any
acquiescence in any default, nor shall any single or partial exercise of any
right or remedy preclude any other or further exercise thereof or the exercise
of any right or remedy.

     c. The Corporation hereby expressly waives demand and presentment for
payment, notice of nonpayment, notice of dishonor, protest, notice of protest,
binging of suit, and diligence in taking any action to collect amounts called
for hereunder, and shall be directly and primarily liable for the payment of all
sums owing and to be owing hereon, regardless of and without any notice,
diligence, act or omission with respect to the collection of any amount called
for hereunder or in connection with any right at any and all times which Holder
had or is existing hereunder.

<PAGE>

13. PAYMENT. Payment shall be made in lawful tender of the United States.

14. EXPENSES, WAIVERS. If action is instituted to collect this Note, the
Corporation promises to pay all costs and expenses, including, without
limitation, reasonably attorney's fees and costs, incurred in connection with
such action. The Corporation hereby waives notice of default, presentment or
demand for payment, protest or notice of nonpayment or dishonor and all other
notices or demands relative to this instrument.

15. APPLICATION OF PAYMENTS. All payments on account of the indebtedness
evidenced by this Note made prior to demand or acceleration shall be applied
first, to any and all costs, expenses, or charges then owed the Holder by the
Corporation, second, to accrued and unpaid interest, and third, to the unpaid
principal balance thereof. All payments so received after demand or acceleration
shall be applied in such manner as the Holder may determine in its sole and
absolute discretion.

16. SEVERABILITY. In the event any one or more of the provisions contained in
this Note shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality, or unenforceability shall not
affect any other provision of this Note and this Note shall be construed as if
such invalid, illegal, or unenforceable provision has never been contained
herein.

17. DUE AUTHORITY AND ENFORCEABILITY. The representative of the Corporation
executing this Note below represents that he has full power, authority and legal
right to execute and deliver this Note and that the debt hereunder constitutes a
valid and binding obligation of Corporation.

18. HEADINGS. The headings of this Note are for convenience of reference only
and shall not define or limit any terms or provisions hereof.

19. RATABLE TREATMENT. So long as any Notes issued under the Securities Purchase
Agreement remain outstanding, the Corporation shall deal ratably with the
holders thereof in any and all matters other than the conversion thereof at the
election of the Holder.

    IN WITNESS WHEREOF, the Corporation has duly executed this Note as of the
day and year above written.

                              CORPORATION

                              HENRY BIRKS & SONS INC.

                              By:   /s/ Thomas A. Andruskevich
                                    --------------------------------------------
                                    Name:       Thomas A. Andruskevich
                                    Title:      President and
                                                 Chief Executive Officer

<PAGE>

                AMENDMENT TO A SECURED CONVERTIBLE NOTE ISSUED BY
    HENRY BIRKS & SONS INC. - HENRY BIRKS ET FILS INC. ON SEPTEMBER 30, 2002

THIS AMENDMENT TO A SECURED CONVERTIBLE NOTE (this "Agreement") is entered into
on            between HENRY BIRKS & SONS INC. - HENRY BIRKS ET FILS INC. (the
"Corporation") and PRIME INVESTMENTS SA (the "Holder").

WHEREAS, on September 30, 2002, the Corporation issued to the Holder a Secured
Convertible Note (the "Note") convertible into common shares of the
Corporation's share capital;

WHEREAS the Corporation has amended its share capital to provide, inter alia,
for (a) the creation of Class A Voting Shares, (b) the conversion of each of the
issued and outstanding common shares of its share capital into 1.01166 Class A
Voting Share (rounded to the nearest whole share) and (c) the cancellation of
the authorized but unissued common shares of its share capital;

WHEREAS the Corporation and the Holder want to amend the Note to reflect such
amendments to the Corporation's share capital;

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1.   The Note is amended as follows:

     (a) all references to Common Shares of the Corporation are replaced by
     references to Class A Voting Shares of the Corporation; and

     (b) the Conversion Price shall, effective as of the date of this Amendment,
     be US$4.88267, subject to adjustment pursuant to Section 4(d) of the Note.

2.   All other terms and conditions of the Note shall remain unchanged.

     IN WITNESS WHEREOF, the Corporation and the Holder have duly executed this
amendment to the Note as of the day and year first above written.

                                     Corporation

                                     HENRY BIRKS & SONS INC.
                                     HENRY BIRKS ET FILS INC.

                                     By : /s/ Thomas A. Andruskevich
                                         ---------------------------------------
                                     Thomas A. Andruskevich

                                     PRIME INVESTMENTS SA

                                     By :
                                         ---------------------------------------
                                     Name:
                                     Title:

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