Document:

<PAGE>

                                                                   Exhibit 4.1

                            STOCK PURCHASE AGREEMENT

         STOCK PURCHASE AGREEMENT (this "AGREEMENT"), dated as of January __,
2002, by and between StockerYale, Inc., a Massachusetts corporation (the
"COMPANY"), and the investor named on the signature page hereof (the
"INVESTOR").

                               W I T N E S S E T H

         WHEREAS, the Company is offering for sale up to 1,200,000 shares (the
"SHARES") of its Common Stock (as defined below) at the price per share of
Common Stock negotiated with each purchaser, pursuant to a Confidential Offering
Memorandum dated as of January 17, 2002 (the "MEMORANDUM"), this transaction
generally being herein referred to as the "PRIVATE PLACEMENT"; and

         WHEREAS, the Investor desires to purchase from the Company shares of
Common Stock on the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth herein, and for good and valuable consideration the receipt of which
is hereby acknowledged, the parties agree as follows:

         1. DEFINITIONS. Unless specifically defined herein, capitalized terms
used herein have the meaning ascribed to such terms in the Memorandum except
that, unless the context requires otherwise, the following terms have the
meanings indicated:

         "BUSINESS DAY" shall mean any day except Saturday, Sunday and any day
which shall be in Boston, Massachusetts a legal holiday or a day on which
banking institutions are authorized or required by law or other government
action to close.

         "COMMON STOCK" shall mean the Common Stock, par value $0.001 per share,
of the Company.

         "INVESTORS" shall mean all of the purchasers of Shares sold in the
Private Placement.

         "PERSON" shall mean any individual, partnership, joint venture, firm,
corporation, association, trust or other enterprise or any government or
political subdivision or any agency, department or instrumentality thereof.

         "TOTAL PURCHASE PRICE" shall mean the aggregate purchase price for all
of the Shares sold in the Private Placement.

2. PURCHASE OF COMMON STOCK. Subject and pursuant to the terms and conditions
set forth in this Agreement, the Company agrees that it will issue and sell to
the Investor and the Investor agrees that it will purchase from the Company, at
$____ per share of Common Stock

<PAGE>

(the "PER SHARE PURCHASE PRICE"), _________ shares of Common Stock (the
"INVESTOR SHARES"). The aggregate purchase price for the shares of Common Stock
shall be $_________ (the "AGGREGATE PURCHASE PRICE"). The shares of Common Stock
are being offered pursuant to the Memorandum.

         3. DELIVERIES AT CLOSING.

              (a) DELIVERIES BY THE INVESTOR. At the Closing of the transactions
contemplated hereby, the Investor shall deliver to the Company the following:

                   (1) the Aggregate Purchase Price by wire transfer of
         immediately available funds to an account designated by the Company as
         set forth on ANNEX V hereto, which funds will be delivered to the
         Company in consideration of the Investor Shares issued at the closing
         of the transaction contemplated hereby;

                   (2) an executed Investor Questionnaire in the form attached
         as ANNEX I;

                   (3) an executed Managed Account Representation Letter in the
         form attached as ANNEX II, if the Investor is acting on behalf of a
         managed account in the purchase of the Investor Shares; and

                   (4) a completed Registration Statement Questionnaire in the
         form attached as ANNEX III.

              (b) DELIVERIES BY THE COMPANY. At the Closing of the transactions
contemplated hereby, the Company shall deliver to the Investor one or more
certificates representing the Investor Shares registered in the name of the
Investor or its nominee(s), as the Investor has specified in writing to the
Company.

         4. REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS.

              (a) INVESTOR REPRESENTATIONS, WARRANTIES AND COVENANTS. The
Investor represents, warrants and agrees as follows:

                   (1) The Investor has received and reviewed a copy of the
         Memorandum, and all appendices and supplements (if any) thereto,
         relating to the Shares and understands that no Person has been
         authorized to give any information or to make any representations that
         were not contained in the Memorandum, and the Investor has not relied
         on any such other information or representations in making a decision
         to purchase the Investor Shares. The Investor has had access to such
         financial and other information and has had the opportunity to ask
         questions and receive answers as deemed necessary in respect of the
         decision to purchase the Investor Shares, and has consulted with its
         advisors concerning the proposed investment in the Company. The
         Investor understands

                                       2

<PAGE>

         that an investment in the Company involves a high degree of risk for
         the reasons, among others, set forth under the caption "Risk Factors"
         in the Memorandum.

                   (2) The Investor has decided to invest in the Shares and, in
         making the decision to so invest, is not in any way relying on the fact
         that any other Person has decided to invest in the Shares.

                   (3) The Investor represents that the Investor (or, if
         applicable, each managed account on whose behalf the Investor Shares
         are being purchased by such Investor) is an "accredited investor" as
         defined in Rule 501 under the Securities Act of 1933, as amended (the
         "SECURITIES ACT"), as certified by the Investor in the Investor
         Questionnaire attached hereto as ANNEX I. The Investor further
         represents that the Investor (or, if applicable, each managed account
         on whose behalf the Investor Shares are being purchased) has such
         knowledge and experience in financial and business matters as to be
         capable of evaluating the merits and risk of an investment in the
         Shares and can bear the economic risk of loss of the entire investment
         in the Shares being purchased.

                   (4) The Investor understands and expressly acknowledges and
         agrees that none of the Shares has been, or will be, registered or
         qualified under the Securities Act, or under any applicable securities
         laws of any State of the United States ("APPLICABLE STATE LAW") and
         therefore may not be offered, sold, transferred, assigned, pledged,
         hypothecated or otherwise disposed of, directly or indirectly, unless
         subsequently registered or qualified under the Securities Act and under
         Applicable State Law or unless an exemption from the registration
         requirements of the Securities Act and Applicable State Law is
         available, in each case to the extent permitted by the terms of this
         Agreement.

                   (5) The Investor understands and agrees that all certificates
         representing the Investor Shares shall bear a legend which will be
         substantially in the form of the following:

                  "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN
                  ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE
                  SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
                  APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS ("APPLICABLE
                  STATE LAW"). THESE SECURITIES MAY NOT BE OFFERED, SOLD,
                  PLEDGED, TRANSFERRED OR HYPOTHECATED OR OTHERWISE ASSIGNED IN
                  THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION FROM
                  REGISTRATION UNDER THE ACT OR APPLICABLE STATE LAW RELATING TO
                  DISPOSITION OF SECURITIES."

                                       3

<PAGE>

                   (6) The Investor (or, if applicable, each managed account on
         whose behalf the Investor Shares are being purchased by the Investor)
         will acquire the Investor Shares pursuant to this Agreement for its own
         account for investment and not with a view to, or in connection with,
         the resale or distribution thereof or in any arrangement or
         understanding with any other persons regarding the distribution of such
         Investor Shares. The Investor hereby covenants and agrees that, during
         the six month period following the Closing, the Investor shall execute
         a lockup agreement, containing a restriction on the sale of Investor
         Shares for a period terminating on the earlier of the ninetieth day
         following closing of a primary offering by the Company or the six month
         anniversary of the Closing, and other standard terms and conditions,
         with any requesting underwriter participating in a primary offering (as
         defined in Section 5(a)(1) below).

                   (7) The Investor hereby covenants and agrees with the Company
         not to, directly or indirectly, sell, offer, contract or grant any
         option to sell (including without limitation any 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 any Investor Shares,
         options or warrants to acquire Investor Shares, or securities
         exchangeable or exercisable for or convertible into Investor Shares
         owned either of record or beneficially (as defined in Rule 13d-3 under
         the Exchange Act) by the Investor or publicly announce the Investor'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 the Investor Shares, prior
         to the date on which the Registration Statement (as defined in Section
         5(a)(2)) is declared effective (other than in connection with a sale
         pursuant to a registration statement effected under Section 5(a)(1)
         hereof).

                   (8) The Investor hereby covenants and agrees with the Company
         not to make any sale of the Investor Shares without causing the
         prospectus delivery requirement under the Securities Act to be
         satisfied or otherwise complying with the Securities Act, and the
         Investor acknowledges and agrees that the Investor Shares are not
         transferable on the books of the Company unless the certificate
         submitted to the transfer agent evidencing the Investor Shares is
         accompanied by (a) a separate certificate (i) in the form of ANNEX V
         hereto, (ii) executed by an officer of, or other authorized person
         designated by, the Investor, and (iii) to the effect that (A) the
         Investor Shares have been sold in accordance with a registration
         statement pursuant to Section 5 hereof and (B) the requirement of
         delivering a current prospectus has been satisfied; or (b) an opinion
         of counsel reasonably satisfactory to the Company stating that an
         exemption from registration is available under the Securities Act. The
         Investor acknowledges that there may be times when the Company may
         suspend the use of the prospectus forming a part of a registration
         statement in the event that, and during such period as, pending
         negotiations relating to, or consummation of, a transaction, or the
         occurrence of any other event, would require additional disclosure of
         material information by the Company in the registration statement and
         the Company determines that disclosing such information would (x)
         adversely affect the Company, (y) make it impractical or inadvisable to
         cause

                                       4

<PAGE>

         the registration statement to be filed or to become effective or
         to amend or supplement the registration statement or (z) otherwise
         render the Company unable to comply with the requirements of the
         Securities and Exchange Commission (the "COMMISSION"). In such event,
         subject to the last sentence of this Section 4(a)(8), the Company may
         suspend the use of such prospectus until such time as an amendment to
         such registration statement has been filed by the Company and declared
         effective by the Commission, or until such time as the Company has
         filed an appropriate report with the Commission pursuant to the
         Exchange Act. The Investor hereby covenants and agrees that it will not
         sell any Investor Shares pursuant to said prospectus during the period
         commencing at the time at which the Company gives the Investor written
         notice of the suspension of the use of said prospectus and ending the
         date on which the Company gives the Investor written notice that the
         Investor may thereafter effect sales pursuant to said prospectus.
         Anything herein to the contrary notwithstanding, the Company does not
         have the right to suspend the use of such prospectus for a period of
         more than forty-five (45) business days per suspension and the Company
         may not exercise this right to suspend the use of such prospectus more
         than twice in any twelve month period.

                   (9) The execution and delivery of this Agreement by the
         Investor and the performance of this Agreement and the consummation by
         the Investor or the Investor's advisory clients, as the case may be, of
         the transactions contemplated hereby have been duly authorized by all
         necessary (corporate, in the case of a corporation) action of the
         Investor and, if applicable, the Investor's advisory clients; and this
         Agreement, when duly executed and delivered by the Investor, will
         constitute a valid and legally binding instrument, enforceable in
         accordance with its terms against the Investor or any of the Investor's
         advisory clients, as the case may be.

                   (10) The Investor represents that:

                        (A) If the Investor is a corporation, it is a
              corporation duly incorporated, validly existing and in good
              standing under the laws of the jurisdiction of its incorporation,
              with full power and authority (corporate and other) to perform its
              obligations under this Agreement. If the Investor is a limited
              liability company, it is a limited liability company duly
              organized, validly existing and in good standing under the laws of
              the jurisdiction of its incorporation, with full power and
              authority (limited liability company and other) to perform its
              obligations under this Agreement. The execution and delivery of
              this Agreement and the performance by the Investor of the
              transactions contemplated hereby have been duly authorized by all
              necessary corporate or other action of the Investor.

                        (B) If the Investor is a corporation acting in an
              advisory capacity, it is a corporation duly organized, validly
              existing and in good standing under the laws of the jurisdiction
              of its incorporation, with full power and authority (corporate and
              other) to act on behalf of its advisory clients under this
              Agreement. If the Investor is a limited liability company acting
              in an advisory capacity, it is a limited liability company duly
              organized, validly existing and in good

                                       5

<PAGE>

              standing under the laws of the jurisdiction of its incorporation,
              with full power and authority (corporate and other) to act on
              behalf of its advisory clients under this Agreement.

                        (C) If the Investor is a trust, the trustee thereunder
              has been duly appointed as trustee of such Investor with full
              power and authority to act on behalf of such Investor and to
              perform the obligations of such Investor under this Agreement.
              Furthermore, the trustee under such trust has independently
              determined that the purchase of the Investor Shares is a suitable
              investment for such trust as authorized by the terms thereof and
              applicable laws and regulations.

                        (D) If the Investor is a limited partnership, it is a
              limited partnership duly organized, validly existing and in good
              standing under the laws of the jurisdiction of its organization,
              with full power and authority to perform its obligations under
              this Agreement.

                        (E) If the Investor is a limited partnership acting in
              an advisory capacity, it is a limited partnership duly organized,
              validly existing and in good standing under the laws of the
              jurisdiction of its organization, with full power and authority to
              act on behalf of its advisory clients under this Agreement.

                        (F) If the Investor is a corporation, limited liability
              company, partnership, trust or other form of business entity, the
              execution and delivery of this Agreement will not contravene or
              result in a default under any provision of existing law or
              regulations to which the Investor is subject, the provisions of
              its trust instrument, charter, by-laws or other governing
              documents or any indenture, mortgage or other agreement or
              instrument to which it is a party or by which it is bound and does
              not require on its part any approval, authorization, license or
              filing from or with any foreign, federal, state or municipal board
              or agency which has not been obtained or duly made.

                        (G) If the Investor is an individual, the Investor has
              full power and authority to perform its obligations under this
              Agreement.

                   (11) The Investor agrees to complete and execute and return
         to the Company (a) the Investor Questionnaire attached as ANNEX I to
         this Agreement representing that the Investor is investing in Shares as
         an "accredited investor;" (b) if the Investor is acting on behalf of a
         managed account in the purchase of any Investor Shares, the Managed
         Accounts Representation Letter attached as ANNEX II to this Agreement;
         and (c) the Registration Statement Questionnaire attached as ANNEX III,
         in each case together with an executed signature page to this
         Agreement. The Investor represents and warrants that the answers
         thereto are true and correct as of the date hereof and will be true and
         correct as of the effective date of the Registration Statement (as
         defined in Section 5). If any of the answers provided by the Investor
         in the questionnaires change prior to the effective date of the
         Registration Statement, the Investor will provide the Company with

                                       6

<PAGE>

         prompt written notice of such changes. The Investor further represents
         and warrants that it is not purchasing the Investor Shares on behalf of
         any managed account other than as listed in the Managed Account
         Representation Letter.

                   (12) The Investor has not entered into any contracts,
         arrangements, understandings or relationships (written or otherwise)
         with any other Person or Persons (other than the Company or a limited
         partner/member or affiliate of Investor, which in any case shall not
         violate any securities laws) with respect to any securities of the
         Company (including but not limited to transfer or voting of any of the
         securities, finder's fees, joint ventures, loan or option arrangements,
         puts or calls, guarantees of profits, division of profits or loss, or
         the giving or withholding of proxies) or the operations, management or
         control of the Company; the Investor is not bound together, under
         common control with, in a common enterprise with, or otherwise acting
         in concert with, any other Person or Persons (other than a limited
         partner/member or affiliate of Investor, which in any case shall not
         violate any securities laws) in connection with the transactions
         contemplated by this Agreement; and the Investor does not own any
         securities of the Company which are pledged or otherwise subject to a
         contingency the occurrence of which would give another Person voting
         power or investment power over such securities.

                   (13) Except as otherwise set forth in ANNEX III, as of the
         date hereof, the Investor does not beneficially own any shares of
         Common Stock.

                   (14) No state, federal or foreign regulatory approvals,
         permits, licenses or consents or other contractual or legal obligations
         are required for the Investor to enter into this Agreement or otherwise
         purchase the Investor Shares.

                   (15) The Investor hereby covenants and agrees not to disclose
         any confidential information provided to the Investor by the Company in
         the Memorandum or otherwise in connection with the Private Placement
         with respect to the Company, except as otherwise required by law.

         (b) COMPANY REPRESENTATIONS, WARRANTIES AND COVENANTS. The Company
hereby represents, warrants and agrees as follows:

                   (1) The Company has been duly incorporated and is validly
         existing in good standing under the laws of the jurisdiction of its
         incorporation, with full power and authority (corporate and other) to
         perform its obligations under this Agreement and to consummate the
         transactions contemplated hereby.

                   (2) The execution, delivery and performance of this Agreement
         by the Company and the consummation by the Company of the transactions
         contemplated hereby have been duly authorized by all necessary action
         of the Company and the Agreement has been duly executed and delivered
         by the Company; and this Agreement,

                                       7

<PAGE>

         when duly executed and delivered by the Investor, will constitute a
         valid and legally binding instrument of the Company enforceable in
         accordance with its terms.

                   (3) The Investor Shares have been duly authorized by the
         Company, and when issued and delivered by the Company against payment
         therefor as contemplated hereby and in accordance with the terms of the
         Memorandum, the Investor Shares will be validly issued, fully paid and
         nonassessable, free of preemptive rights and free from all taxes,
         liens, charges and security interests in respect of the issuance
         thereof.

                   (4) The execution and delivery of this Agreement, the
         consummation by the Company of the transactions herein contemplated and
         the compliance by the Company with the terms hereof do not and will not
         (i) violate the Articles of Organization (as amended to date) of the
         Company, or the By-Laws (as amended to date) of the Company, or (ii)
         result in a breach or violation of any of the terms or provisions of,
         or constitute a default under, any indenture, mortgage, deed of trust,
         loan agreement or other agreement or instrument to which the Company or
         any of its subsidiaries is a party or by which the Company or any of
         its subsidiaries is bound or to which any of their properties or assets
         are subject, or any applicable statute or any order, judgment, decree,
         rule or regulation of any court or governmental agency or body having
         jurisdiction over the Company or any of its subsidiaries or any of
         their properties or assets other than a breach or violation that could
         reasonably be expected to have a material adverse effect on the
         condition (financial or otherwise), business, assets or results of
         operations of the Company (a "MATERIAL ADVERSE EFFECT"); and no
         consent, approval, authorization, order, registration or qualification
         of or with any such court or governmental agency or body is required
         for the valid authorization, execution, delivery and performance by the
         Company of this Agreement, the issue of the Investor Shares or the
         consummation by the Company of the other transactions contemplated by
         this Agreement, except for such consents, approvals, authorizations,
         registrations or qualifications as may be required under Federal or
         state securities or "blue sky" laws or, with respect to requirements
         applicable to the Investor and except where the failure to obtain such
         consents, approvals, authorizations, registrations or qualifications
         that could not reasonably be expected to have a Material Adverse
         Effect.

                   (5) The information contained in the following documents,
         which the Company has furnished to the Investor does not contain any
         untrue statement of material fact or omit to state any material fact
         necessary in order to make the statements therein in light of the
         circumstances in which they were made not misleading as of the
         respective final dates of the documents. Each of the documents listed
         in (A), (B) and (C) below complied as to form in all material respects
         with the applicable requirements of the Securities Act or Exchange Act
         as of the date filed with the Commission.

                        (A) the Company's Annual Report to Stockholders on Form
              10-KSB for the fiscal year ended December 31, 2000, as amended
              (without exhibits);

                                        8

<PAGE>

                        (B) Notice to Stockholders and Proxy Statement for its
              Special Meeting in lieu of an Annual Meeting of Stockholders held
              May 24, 2001;

                        (C) the Company's Quarterly Reports on Form 10-QSB for
              the quarters ended March 31, 2001, June 30, 2001(as amended) and
              September 30, 2001; and

                        (D) the Memorandum.

                   (6) The balance sheets of the Company for the nine months
         ended September 30, 2001 have been prepared in conformity with
         generally accepted accounting principles applied on a consistent basis,
         are consistent in all material respects with the books and records of
         the Company and accurately present in all material respects the
         financial position of the Company and its subsidiaries as of September
         30, 2001. There has been no material adverse change in the financial
         condition or business or results of operations of the Company or its
         subsidiaries since September 30, 2001.

              (c) SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS.
Notwithstanding any investigation made by any party to this Agreement, all
covenants, agreements, representations and warranties made by the Company and
the Investor herein and in the certificates for the Investor Shares delivered
pursuant hereto shall survive the execution of this Agreement, the delivery to
the Investor of the Investor Shares and the payment therefor.

         5. REGISTRATION OF THE SHARES; COMPLIANCE WITH THE SECURITIES ACT.

              (a) REGISTRATION RIGHTS; REGISTRATION PROCEDURES AND EXPENSES.

                   (1) If at any time or times after the date hereof, the
         Company shall determine or be required to register any shares of its
         Common Stock or other equity securities for sale under the Securities
         Act in exchange for cash (whether in connection with a public offering
         of securities by the Company (a "PRIMARY OFFERING"), a public offering
         of securities by stockholders of the Company (a "SECONDARY OFFERING")
         or both), but not in connection with a registration effected solely to
         implement an employee benefit plan or a transaction to which Rule 145
         or any other similar rule of the Commission under the Securities Act is
         applicable, the Company shall:

                        (A) Promptly give written notice thereof to each of the
              Investors.

                        (B) Use commercially reasonable efforts to effect the
              registration under the Securities Act of all Investor Shares (but
              not any other shares) which such Investors request to be
              registered in a writing delivered to the Company within 10 days
              after such Investors' receipt of the notice referred to above,
              subject to subparagraph (iii) below.

                                        9

<PAGE>

                        (C) In the case of the registration of shares of Common
              Stock by the Company in connection with an underwritten public
              offering, (a) the Company shall not be required to include any
              Investor Shares in such underwriting unless the Investors thereof
              accept the terms of the underwriting as agreed upon between the
              Company and the underwriter or underwriters selected by it, and
              (b) if the underwriter(s) determines that marketing factors
              require a limitation on the number of Investor Shares to be
              offered, the Company shall not be required to register Investor
              Shares of the Investors in excess of the amount, if any, of shares
              of the capital stock which the principal underwriter of such
              underwritten offering shall reasonably and in good faith agree to
              include in such offering in excess of any amount to be registered
              for the Company, and in the event of any such limitation, the
              number of Investor Shares of any Investor requesting inclusion in
              such registration shall be based upon the relative holdings of
              Common Stock of all Investors requesting such registration (and if
              any Investor would thus be entitled to include more Investor
              Shares than such Investor requested to be registered, the excess
              shall be allocated among other requesting Investors PRO RATA based
              upon their relative holdings of Common Stock). All expenses
              relating to the registration and offering of Investor
              Shares pursuant to this Section 5(a)(1) and pursuant to Section
              5(a)(2) below shall be borne by the Company, except that the
              Investors shall bear underwriting and selling commissions
              attributable to their Investor Shares being registered, any
              transfer taxes on shares being sold by such Investors and the
              costs of any counsel or other professional advisors engaged by the
              Investors.

Notwithstanding the foregoing, the Company's obligations pursuant to this
Section 5(a)(1) shall be suspended for so long as the Registration Statement
filed pursuant to Section 5(a)(2) is effective.

                   (2) The Company shall:

                        (A) Subject to the provisions of subparagraph (B) of
              this Section 5(a)(2) and Sections 5(c) and 5(d) below, use
              commercially reasonable efforts to prepare and file with the
              Commission within 30 days of the Closing a registration statement
              under Rule 415 under the Securities Act (the "REGISTRATION
              STATEMENT") to enable the public offering and sale of the Investor
              Shares by the Investor from time to time through the Nasdaq
              National Market, the over-the-counter market or in
              privately-negotiated transactions or otherwise.

                        (B) The Company shall use commercially reasonable
              efforts, subject to receipt of necessary information from the
              Investor, to cause the Registration Statement to become effective
              within 90 days after the Closing.

                        (C) Promptly prepare and file with the Commission such
              amendments and supplements to the Registration Statement and the
              prospectus used in connection therewith as may be necessary to
              keep the Registration Statement

                                       10

<PAGE>

              effective for a period not exceeding the second anniversary of the
              Closing, or such shorter period which will terminate on the
              earlier of the date when (i) the Shares held by the Investor may
              be sold without registration under the Securities Act or (ii) all
              of the Shares covered by such Registration Statement have been
              sold pursuant to such Registration Statement or otherwise.

                        (D) Promptly furnish to the Investor with respect to the
              Investor Shares registered under the Registration Statement (and
              to each underwriter, if any, of such Investor Shares) such number
              of copies of the Registration Statement and any amendment or
              supplement thereto and of prospectuses and preliminary
              prospectuses in conformity with the requirements of the Securities
              Act as the Investor shall reasonably request.

                        (E) Promptly file documents required of the Company for
              customary "blue sky" clearance in states specified in writing by
              the Investor and reasonably required by the Investor in order to
              resell its Investor Shares; PROVIDED, HOWEVER, that the Company
              shall not be required to qualify to do business or consent to
              service of process in any jurisdiction in which it is not now so
              qualified or has not so consented.

                        (F) Promptly inform the Investor when any stop order by
              the Commission has been issued with respect to the Investor Shares
              and use commercially reasonable efforts to promptly cause such
              stop order to be withdrawn.

                        (G) Take such other actions as may reasonably be
              necessary to effect the registration of the resale of the Investor
              Shares in accordance with the terms of this Agreement and to allow
              such Investor Shares to trade in the same market system or
              exchange where the Company's Common Stock then trades.

                        (H) File the reports required to be filed by it under
              the Securities Act and the Exchange Act (or, if the Company is not
              required to file such reports, it will, upon the request of any
              holder of Investor Shares, make publicly available other
              information so long as necessary to permit sales under Rule 144
              under the Securities Act), all to the extent required from time to
              time to enable the Investor to sell Investor Shares without
              registration under the Securities Act within the limitations
              provided by (i) Rule 144 under the Securities Act, as such Rule
              may be amended from time to time, or (ii) any similar rule or
              regulation hereafter adopted by the Commission; PROVIDED,
              HOWEVER, that, except as otherwise expressly provided in this
              Section 5(a)(2)(H), nothing in this Agreement shall
              require the Company to file reports under the Securities Act or
              the Exchange Act, to register any of its securities under the
              Exchange Act, or to make publicly available any information
              concerning the Company at any time when it is not required by law
              or by any agreement by which it is bound to do any of the
              foregoing.

                                       11

<PAGE>

A questionnaire related to the Registration Statement to be completed by the
Investor is attached hereto as ANNEX IV.

         (b) TRANSFER OF SHARES. The Investor agrees not to effect any
disposition of the Investor Shares or the right to purchase the Investor Shares
that would constitute a sale within the meaning of the Securities Act except as
contemplated in Sections 5(a)(1) and (2) or pursuant to an exemption from
registration under the Securities Act. The Investor agrees to promptly notify
the Company of any changes in the information set forth in any registration
statement regarding the Investor Shares or the Investor.

         (c) The Investor hereby acknowledges and agrees that in the event that
the Company makes any filing with the SEC in connection with a primary
underwritten offering within 30 days following the Closing Date, the time period
for preparing and filing a Registration Statement as contemplated by Section
5(a)(2) above shall be extended until May 31, 2002 and the Company shall use
commercially reasonable efforts, subject to the receipt of necessary information
from the Investor, to cause the Registration Statement to become effective as
promptly thereafter as practicable.

         (d) POSTPONEMENT. The Company may postpone the filing or effectiveness
of any registration statement to be filed pursuant to this Section 5 for a
reasonable period of time if (i) the Company is engaged in confidential
negotiations or other confidential business activities, disclosure of which
would be required in such registration statement and (ii) the Board of Directors
of the Company determines in good faith that such disclosure would have a
material adverse effect on any such confidential negotiations or other
confidential business activities or would be materially detrimental to the
Company.

         (e) INDEMNIFICATION AND CONTRIBUTION.

                   (1) For the purpose of this Section 5(e):

                        (A) The term "SELLING SHAREHOLDER" shall include the
              Investor, officers, directors, trustees, or any affiliate of such
              Investor and each person, if any, who controls the Selling
              Shareholder within the meaning of the Securities Act and

                        (B) The term "REGISTRATION STATEMENT" shall include (i)
              the Registration Statement and any final prospectus, exhibit,
              supplement or amendment included in or relating to the
              Registration Statement and (ii) any registration statement filed
              in connection with Section 5(a)(1) and any final prospectus,
              exhibit, supplement or amendment included in or relating to such
              registration statement; and

                   (2) The Company agrees to indemnify and hold harmless each
         Selling Shareholder from and against any losses, claims, damages or
         liabilities to which such Selling Shareholder may become subject (under
         the Securities Act or otherwise) insofar

                                       12

<PAGE>

         as such losses, claims, damages or liabilities (or actions or
         proceedings in respect thereof) arise out of, or are based upon any
         untrue statement or alleged untrue statement of a material fact
         contained in the Registration Statement or 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 or arise out
         of any failure by the Company to fulfill any undertaking included in
         the Registration Statement and the Company will reimburse such Selling
         Shareholder for any reasonable legal or other expenses reasonably
         incurred in investigating, defending or preparing to defend any such
         action, proceeding or claim, PROVIDED, HOWEVER, that the Company shall
         not be liable in any such case to the extent that such loss, claim,
         damage or liability arises out of, or is based upon, any such untrue
         statement or omission made in such Registration Statement in reliance
         upon written information furnished to the Company by or on behalf of
         such Selling Shareholder for use in preparation of the Registration
         Statement, or the failure of such Selling Shareholder to comply with
         the covenants and agreements contained in Sections 4(a)(7) and 5(b)
         hereof respecting sale of the Shares or any statement or omission in
         any prospectus that is corrected or made not misleading in any
         subsequent prospectus that was delivered to the Investor prior to the
         pertinent sale or sales by the Investor. The Company will reimburse
         such Selling Shareholder, as the case may be, for any legal or other
         expenses reasonably incurred in investigating, defending or preparing
         to defend any such action, proceeding or claim.

                   (3) The Investor agrees to indemnify and hold harmless the
         Company (and each person, if any, who controls the Company within the
         meaning of Section 15 of the Securities Act, each officer of the
         Company who signs the Registration Statement and each director of the
         Company) from and against any losses, claims, damages or liabilities to
         which the Company (or any such officer, director or controlling person)
         may become subject (under the Securities Act or otherwise), insofar as
         such losses, claims, damages or liabilities (or actions or proceedings
         in respect thereof) arise out of, or are based upon, any failure to
         comply with the covenants and agreements contained in Sections 4(a)(7)
         and 5(b) hereof respecting sale of the Shares, or any untrue statement
         of a material fact contained in the Registration Statement on the
         effective date thereof if such untrue statement was made in reliance
         upon written information furnished by or on behalf of the Investor for
         use in preparation of the Registration Statement, PROVIDED, HOWEVER,
         that such Investor shall not be liable in any such case to the extent
         that the Investor has furnished in writing to the Company information
         expressly for use in such Registration Statement or any amendment
         thereof or supplement thereto which corrected or made not misleading
         information previously furnished to the Company prior to the filing of
         the Registration Statement, and if furnished to the Company after the
         filing of the Registration Statement, has notified the Company of such
         information immediately upon its occurrence or the Investor's knowledge
         of its occurrence. The Investor will reimburse the Company (or such
         officer, director or controlling person), as the case may be, for any
         legal or other expenses reasonably incurred in investigating, defending
         or preparing to defend any such action, proceeding or claim. In no
         event shall the liability of the Investor hereunder be greater in
         amount than the dollar amount of the proceeds received by such

                                       13

<PAGE>

         Investor (net of any underwriting discount) upon the sale of the Shares
         giving rise to such indemnification obligation.

                   (4) Promptly after receipt by any indemnified person of a
         notice of a claim or the beginning of any action in respect of which
         indemnity is to be sought against an indemnifying person pursuant to
         this Section 5(e), such indemnified person shall notify the
         indemnifying person in writing of such claim or of the commencement of
         such action, and, subject to the provisions hereinafter stated, in case
         any such action shall be brought against an indemnified person and such
         indemnifying person shall be entitled to participate therein, and, to
         the extent it shall wish, to assume the defense thereof, with counsel
         reasonably satisfactory to such indemnified person. After notice from
         the indemnifying person to such indemnified person of its election to
         assume the defense thereof, such indemnifying person shall not be
         liable to such indemnified person for any legal expenses subsequently
         incurred by such indemnified person in connection with the defense
         thereof, PROVIDED, HOWEVER, that if there exists or shall exist a
         conflict of interest that would make it inappropriate, in the opinion
         of counsel to the indemnified person, for the same counsel to represent
         both the indemnified person and such indemnifying person or any
         affiliate or associate thereof, the indemnified person shall be
         entitled to retain its own counsel at the expense of such indemnifying
         person; PROVIDED, HOWEVER, that no indemnifying person shall be
         responsible for the fees and expenses of more than one separate counsel
         for all indemnified parties. The indemnifying party shall not be liable
         for any settlement of any proceeding effected without its written
         consent, but, if settled with such consent or if there be a final
         judgment for the plaintiff, the indemnifying party agrees to indemnify
         the indemnified party or parties in accordance with the provisions of
         this Section 5(e).

                   (5) If the indemnification provided for in this Section 5(e)
         from the indemnifying person is determined by a court of competent
         jurisdiction to be unavailable to an indemnified person hereunder in
         respect of any losses, claims, damages, liabilities or expenses
         referred to herein, then the indemnifying person, in lieu of
         indemnifying such indemnified person, shall contribute to the amount
         paid or payable by such indemnified person 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 person
         and indemnified persons 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 person and indemnified persons 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,
         has been made by, or relates to information supplied by, such
         indemnifying person or indemnified persons, 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, subject to the limitations set forth
         in this Section 5(e), any reasonable legal or other fees

                                       14

<PAGE>

         or expenses reasonably incurred by such party in connection with any
         investigation or proceeding.

         The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(e) 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.
Notwithstanding the provisions of this Section 5(e), no Investor shall be
required to contribute any amount in excess of the dollar amount of the proceeds
received by such Investor (net of any underwriting discount) upon the sale of
the Shares giving rise to such contribution obligation. 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.

         (f) TERMINATION OF CONDITIONS AND OBLIGATIONS. The conditions precedent
imposed by Section 4(a)(8) or this Section 5 upon the transferability of the
Investor Shares shall cease and terminate as to any particular number of the
Investor Shares when such Investor Shares shall have been effectively registered
under the Securities Act and sold or otherwise disposed of in accordance with
the intended method of disposition set forth in the registration statement
covering such Investor Shares or when such Investor Shares shall have been sold
or otherwise disposed following receipt by the Company of an opinion of counsel
satisfactory to the Company stating that an exemption from registration is
available under the Securities Act to sell or otherwise dispose of such Investor
Shares.

         (g) INFORMATION AVAILABLE. So long as a registration statement is
effective covering the resale of the Investor Shares, the Company will furnish
to the Investor:

                   (1) As soon as practicable after available (but in the case
         of the Company's Annual Report to Shareholders, within one hundred
         twenty (120) days after the end of each fiscal year of the Company),
         one copy of (i) its Annual Report to Shareholders (which Annual Report
         shall contain financial statements audited in accordance with generally
         accepted accounting principles by a national firm of certified public
         accountants), (ii) if not included in substance in the Annual Report to
         Shareholders, its Annual Report on Form 10-KSB or equivalent form,
         (iii) its Quarterly Reports to Shareholders, (iv) if not included in
         substance in its Quarterly Reports to Shareholders, its quarterly
         reports on Form 10-QSB or equivalent form, and (v) a full copy of the
         particular registration statement covering the Shares (the foregoing,
         in each case, excluding exhibits); and

                   (2) Upon the reasonable request of the Investor, all exhibits
         to the reports and registration statement provided to the Investor
         pursuant to subparagraph (1) of this Section 5(g) and all other
         information that is made available to shareholders;

                   (3) Upon the reasonable request of the Investor, an adequate
         number of copies of the prospectuses to supply to any other party
         requiring such prospectuses;

                                       15

<PAGE>

and the Company, upon the reasonable request of the Investor, will meet with the
Investor or a representative thereof at the Company's headquarters to discuss
all information relevant for disclosure in the registration statement covering
the Investor Shares and will otherwise reasonably cooperate with any Investor
conducting an investigation for the purpose of reducing or eliminating such
Investor's exposure to liability under the Securities Act, including the
reasonable production of information at the Company's headquarters.

         6. MISCELLANEOUS.

              (a) FEES AND EXPENSES. Each of the parties hereto shall be
responsible for their own expenses incurred in connection with the transactions
contemplated hereby. The Company shall reimburse the Investor for its reasonable
out-of-pocket expenses, if any, incurred in connection with the procedures in
Section 5(a)(2)(A) through (H) hereof, other than fees and expenses, if any, of
one counsel or other advisors to all of the Investors upon delivery to the
Company of reasonable documentation setting forth such out-of-pocket expenses.

              (b) BINDING AGREEMENT; ASSIGNMENT. This Agreement shall be binding
upon, and shall inure solely to the benefit of, each of the parties hereto, and
each of their respective heirs, executors, administrators, successors and
permitted assigns, and no other person shall acquire or have any right under or
by virtue of this Agreement. The Investor may not assign any of its rights or
obligations hereunder to any other person or entity without the prior written
consent of the Company.

              (c) ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement among the parties hereto with respect to the subject matter hereof and
may be amended only by written execution by both parties. By executing this
Agreement below, the Investor agrees to be bound by all of the terms,
provisions, warranties, covenants and conditions contained herein. Upon
acceptance by the Company, this Agreement shall be binding on both parties
hereto.

              (d) CONSENT TO JURISDICTION. THIS AGREEMENT SHALL BE ENFORCED,
GOVERNED AND CONSTRUED IN ALL RESPECTS IN ACCORDANCE WITH THE LAWS OF THE
COMMONWEALTH OF MASSACHUSETTS, WITHOUT GIVING EFFECT TO ITS CONFLICTS OF LAWS
PRINCIPLES. FURTHERMORE, EACH INVESTOR HEREBY IRREVOCABLY SUBMITS TO THE
JURISDICTION OF THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS AND THE UNITED
STATES OF AMERICA FOR THE DISTRICT OF MASSACHUSETTS IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

              (e) NOTICES. All notices, requests, consents and other
communication hereunder shall be in writing, shall be mailed by first class
registered or certified mail, or nationally recognized overnight express courier
postage prepaid, and shall be deemed given when so mailed and shall be delivered
as addressed as follows:

                                       16

<PAGE>

         if to the Company, to:

                           StockerYale, Inc.
                           32 Hampshire Road
                           Salem, New Hampshire 03079
                           Attn:    Mark W. Blodgett,
                                    Chief Executive Officer

         with a copy mailed to:

                           Goodwin Procter LLP
                           Exchange Place
                           Boston, Massachusetts 02109
                           Attn:  Stuart M. Cable, P.C.

or to such other person at such other place as the Company shall designate to
the Investor in writing; and

if to the Investor, at its address as set forth at the end of this Agreement, or
at such other address or addresses as may have been furnished to the Company in
writing.

              (f) COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one in the same agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       17

<PAGE>

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

                                          STOCKERYALE, INC.

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

Accepted and Agreed as of the date first above written:

-----------------------------------------------------
Name of Investor (Print)

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

Address:
              ---------------------------------------

              ---------------------------------------

              ---------------------------------------

Telephone:
          -------------------------------------------
Facsimile:
          -------------------------------------------

Nominee (name in which Investor
Shares are to be registered, if
different than name of Investor)
                                 --------------------

Address of Nominee:

              ---------------------------------------

              ---------------------------------------

              ---------------------------------------

Taxpayer I.D. Number:
                     --------------------------------
(if acquired in the name of a nominee, the taxpayer I.D. number of such
nominee)

                  EACH INVESTOR EXECUTING THESE PURCHASE AGREEMENT SIGNATURE
                  PAGES ON BEHALF OF ONE OR MORE MANAGED ACCOUNTS SHOULD PROVIDE
                  THE NAME OF, AND FOREGOING INFORMATION WITH RESPECT TO, EACH
                  SUCH MANAGED ACCOUNT.

<PAGE>

                                     ANNEX I

                             INVESTOR QUESTIONNAIRE

         The Shares are being offered for sale to "accredited investors" as that
term is defined in Rule 501 under the Securities Act of 1933, as amended (the
"Act").

         The undersigned entity certifies that it (and each managed account on
whose behalf Investor Shares are being purchased by it) is an "accredited
investor" because it is (check one or more items below):

--------     i.    a bank as defined in section 3(a)(2) of the Act whether
                   acting in its individual or fiduciary capacity;

--------    ii.    a savings and loan association or other institution as
                   defined in section 3(a)(5)(A) of the Act whether acting in
                   its individual or fiduciary capacity;

--------    iii.   a broker dealer registered pursuant to section 15 of the
                   Securities Exchange Act of 1934, as amended;

--------    iv.    an insurance company as defined in section 2(13) of the Act;

--------     v.    an investment company registered under the Investment
                   Company Act of 1940, as amended (the "1940 Act");

--------    vi.    a business development company as defined in section
                   2(a)(48) of the 1940 Act;

--------    vii.   a Small Business Investment Company licensed by the U.S.
                   Small Business Administration under section 301(c) or (d)
                   of the Small Business Investment Act of 1958;

--------   viii.   a plan established and maintained by a state or its
                   political subdivision for the benefit of its employees,
                   provided that such plan has total assets in excess of
                   $5,000,000;

--------    ix.    an employee benefit plan within the meaning of Title I of the
                   Employee Retirement Income Security Act of 1974 ("ERISA"),
                   provided that the investment decision is made by a plan
                   fiduciary, as defined in section 3(21) of ERISA, and the plan
                   fiduciary is either a bank, savings and loan association,
                   insurance company or registered investment adviser or
                   provided that the employee benefit plan has total assets in
                   excess of $5,000,000; or if a self-directed plan, with
                   investment decisions made solely by persons that are
                   accredited investors;

--------     x.    a private business development company as defined in
                   section 202(a)(22) of the Investment Advisers Act of 1940;

<PAGE>

                                                                       ANNEX I
                                                                        Page 2

--------    xi.    an organization described in section 501(c)(3) of the
                   Internal Revenue Code, not formed for the specific purpose
                   of acquiring the Investor Shares, with total assets in
                   excess of $5,000,000;

--------    xii.   a director or executive officer, or general partner of the
                   Company;

--------   xiii.   a corporation, Massachusetts or similar business trust,
                   limited liability company or partnership, not formed for
                   the specific purpose of acquiring the Investor Shares, with
                   total assets in excess of $5,000,000;

--------    xiv.   a trust, with total assets in excess of $5,000,000, not
                   formed for the specific purpose of acquiring the Investor
                   Shares, and the purchase of the Investor Shares is directed
                   by a sophisticated person as described in Rule 506(b)(2)(ii)
                   under the Act;

--------    xv.    a natural person whose individual net worth, or joint net
                   worth with that person's spouse, at the time of his
                   purchase exceeds $1,000,000;

--------    xvi.   a natural person who had an individual income in excess of
                   $200,000 in each of 1998 and 1999 or joint income with that
                   person's spouse in excess of $300,000 in each of those years
                   and has a reasonable expectation of reaching the same income
                   level in 2000;

--------   xvii.   an entity in which all of the equity owners are accredited
                   investors (described in any of (i)-(xvi) above).

                                    INVESTOR:

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

<PAGE>

                                    ANNEX II

                [FORM OF MANAGED ACCOUNTS REPRESENTATION LETTER]

StockerYale, Inc.
32 Hampshire Road
Salem, New Hampshire 03079
Attn:    Mark W. Blodgett
         Chief Executive Officer

Ladies and Gentlemen:

         Reference is hereby made to that certain Stock Purchase Agreement,
dated as of January __, 2002 (the "Agreement"), by and between you and the
undersigned relating to the purchase of shares of the common stock, par value
$0.001 per share (the "Common Stock"), of StockerYale, Inc. ("Stocker").
Capitalized terms used herein that are not defined herein have the meaning set
forth in the Agreement.

         The undersigned has executed or is executing the Agreement as an
Investor.

         This Managed Accounts Representation Letter will serve to advise you
that in executing the Agreement, the undersigned has acted for or on behalf of
one or more persons ("Accounts") pursuant to authority granted to the
undersigned by each such Account.

         The undersigned hereby represents and warrants to, and covenants and
agrees with, you that:

              i.        the shares of Common Stock being purchased under the
                        Agreement by or for an Account are being purchased for
                        the benefit of the Account and the undersigned is not
                        acting for itself but is acting as a fiduciary on behalf
                        of such Account;

              ii.       the representations and warranties of the Investor set
                        forth in Section 4(a) of the Agreement are true and
                        correct as to each Account and the Investor Shares being
                        purchased by or for such Account;

              iii.      each such Account will be fully bound by and subject to
                        the Agreement in all respects as an Investor;

              iv.       the undersigned is fully authorized by each such Account
                        to enter into the Agreement with full authority
                        regarding the investment in and disposition of the
                        Investor Shares, the evaluation of the merits and risks
                        of the investment and to execute this Managed Accounts
                        Representation Letter for or on behalf of such Account;
                        and

<PAGE>

                                                                      ANNEX II
                                                                        Page 2

              v.        the undersigned is registered or licensed as either an
                        investment adviser or a dealer or broker and is in
                        compliance with all investment adviser or dealer and
                        broker requirements, as the case may be, in connection
                        with the sale of the Investor Shares and with all the
                        statutes, rules and regulations with respect to
                        registration or licensing in each state in which the
                        Investor Shares are sold by the undersigned.

         Executed as of the date as of which the Agreement is executed by the
undersigned.

                                          ACCOUNT MANAGER:

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

                                          On behalf of the following accounts:

<PAGE>

                                    ANNEX III

                      REGISTRATION STATEMENT QUESTIONNAIRE

         In connection with the preparation of the Registration Statement,
please provide us with the following information:

         1. For use in the "Selling Stockholder" section of the Registration
Statement, please state your or your organization's name exactly as it should
appear in the Registration Statement:

         2. If the Investor Shares are registered in the name of a nominee,
please provide the nominee's name:

         3. Please state the number of shares of Common Stock you or your
organization beneficially owned prior to the Purchase of Investor Shares:

         4. Please provide the following information, as of the Closing Date:

                    (1)                              (2)
         Number of Investor Shares         Number of shares of Common
         which are beingincluded in        Number of shares of Common
         the Registration Statement        Stock, if any, which will
         (if all purchased, put all);      be owned after completion
                                           of sale of the Investor
                                           Shares included in the
                                           Registration Statement;

<PAGE>

5. Have you or your organization had any position, office or other material
relationship within the past three (3) years with the Company or its affiliates
other than as disclosed in the Memorandum?

                        Yes                                         No
                  -----                                       -----

         If yes, please indicate the nature of any such relationship below:

         ------------------------------------------------------------------

         ------------------------------------------------------------------

         ------------------------------------------------------------------

         6. Please provide below the names of all persons or entities (including
all natural persons) who may be deemed to "beneficially own" all or a part of
the Investor Shares within the meaning of Rule 13d-3 of the Exchange Act. Rule
13d-3 defines a "beneficial owner" as any person or entity who "directly or
indirectly, through any contract, arrangement, understanding, relationship, or
otherwise has or shares (1) voting power which includes the power to vote, or to
direct the voting of, such security; and/or (2) investment power which includes
the power to dispose, or to direct the disposition of, such security."

         7. Are you or your organization a registered broker or dealer or an
affiliate of a registered broker or dealer?

                        Yes                                         No
                  -----                                       -----

         If you are an affiliate of a registered broker or dealer, please
         provide the name of such broker or dealer:

<PAGE>

                                    ANNEX IV

Attention:

                    INVESTOR'S CERTIFICATE OF SUBSEQUENT SALE

         The undersigned, [an officer of, or other person duly authorized by]
______________ [fill in official name of individual or institution] hereby
certifies that he/she [said institution] is the Investor in the shares evidenced
by the attached certificate, and as such, sold such shares on ______[date] in
accordance with registration statement number ________________[fill in the
number of or otherwise identify registration statement] and the requirement of
delivering a current prospectus and current annual and quarterly reports by the
Company has been complied with in connection with such sale.

Print or Type:

         Name of Investor
                  (Individual or
                  Institution)
                                               --------------------------------
         Name of Individual
                  Representing
                  Investor (if an
                  Institution):
                                               --------------------------------
         Title of Individual
                  Representing
                  Investor (if an
                  Institution):
                                               --------------------------------
Signature by:

         Individual Investor or
                  Individual representing
                  Investor:
                                               --------------------------------

<PAGE>

                                     ANNEX V

                                WIRE INSTRUCTIONS

                    AGGREGATE PURCHASE PRICE TO BE WIRED TO:

                                   Fleet Bank
                                Boston, MA 02211
                                ABA# 011-000-138
                         Account name: StockerYale, Inc.
                              Account # 0562781184QuickLinks
 -- Click here to rapidly navigate through this document
  

EXHIBIT 10.1  

[*] CONFIDENTIAL TREATMENT REQUESTED. THE REDACTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION.  

 
 

Nonexclusive License Agreement
  between AnorMED, Inc.
  and North American Scientific, Inc.    
  

        This Nonexclusive License Agreement ("Agreement") is entered into by and between AnorMED, Inc., a corporation doing business in British Columbia, Canada
("ANORMED"), and North American Scientific, Inc., organized and existing under the laws of Delaware ("LICENSEE"), on July 20, 2001 ("Effective Date"). 

1.0    Recitals.  

        1.1  WHEREAS,
ANORMED has developed and owns or is in possession of certain linker technology relating to the modification of proteins with a chemical compound known as hynic
and with other compounds useful in protein labeling; 

        1.2  WHEREAS,
LICENSEE, through its wholly-owned subsidiary, Theseus Imaging Corporation, is studying recombinant human annexin as a radiopharmaceutical for imaging apoptosis
and necrosis in
vivo and ANORMED'S linker technology may be usefully incorporated into the molecule for the purpose of radiolabelling; 

        1.3  WHEREAS,
ANORMED desires that its linker technology be used as soon as possible in the public interest, and to this end desires to license the linker technology to
companies capable of commercially exploiting its linker technology; and 

        1.4  WHEREAS,
LICENSEE desires, for the purpose of commercial exploitation, to acquire a nonexclusive license to certain patent rights in and to ANORMED's linker technology
and to receive certain confidential and non-confidential information relating to ANORMED's linker technology; 

        Now
therefore, for good and valuable consideration, the parties agree as follows: 

2.0    Definitions.  

        2.1  Terms
defined in this Article 2, or parenthetically defined elsewhere in this Agreement, shall throughout this Agreement have the meaning so provided. Defined
terms may be used in the singular or in the plural. Terms defined in this Article 2 will be printed in capital letters for ease of reference. 

        2.2  "AFFILIATE"
shall mean any company or business entity controlled by, controlling or under common control with a party. For purposes of this definition, "control" shall
mean the direct or indirect ownership of, or beneficial interest in, at least thirty-five percent (35%) (or, if less, the maximum permitted by applicable law) of the voting stock, equity
or income interest. 

        2.3  "FIELD
OF USE" shall mean only the in vivo use in mammals for diagnosis or prognosis of disease or other conditions,
except the in vivo diagnosis of cancer in mammals. For the avoidance of doubt, "FIELD OF USE" does not include in
vivo treatment. 

        2.4  "LICENSED
PATENTS" shall mean the United States patents and patent applications set forth in Exhibit A attached hereto, including all reissues, divisionals,
continuations, reexaminations and extensions thereof, together with all corresponding foreign patents, extensions, supplemental protection certificates and applications corresponding thereto now
issued or issued during the term of this Agreement. 

2

 

        2.5  "LICENSED
PRODUCT" shall mean pharmaceutical compositions approved by regulatory authorities for sale in the TERRITORY and FIELD OF USE in dosage form that contain MCP1
or Annexin protein of greater than 3,000 Daltons molecular weight that have been radiolabeled using a linker described in any of the LICENSED PATENTS. Pursuant to Article 3.2, this definition
of LICENSED PRODUCTS may be expanded to include additional proteins upon the exercise of the option set forth in Article 3.2. 

        2.6  "MAJOR
COUNTRY" shall mean the United States, Canada, Germany, France, United Kingdom or Japan. 

        2.7  "NET
SALES" shall mean the gross amount invoiced for any LICENSED PRODUCT (including all related components) by LICENSEE, its AFFILIATES or its SUBLICENSEES in arm's
length sales or other dispositions to unrelated third parties, less the following amounts incurred by LICENSEE, or its AFFILIATES or SUBLICENSEES with respect to the sale or disposition of the
LICENSED PRODUCT. 

        (a)  trade,
cash and quantity discounts or rebates actually allowed or taken; 

        (b)  credits
or allowances actually given or made for rejection of or return of previously sold LICENSED PRODUCTS or for retroactive price reductions (including Medicare and
similar types of rebates); 

        (c)  charges
for insurance, freight, and other transportation costs directly related to the delivery of LICENSED PRODUCT to the extent included in and separately itemized on
the invoice; 

        (d)  sales,
transfer and other excise taxes levied on the sale or delivery of a LICENSED PRODUCT (including any tax such as a value added or similar tax or government charge)
to be collected by the seller thereof and separately itemized on the invoice, other than franchise or income tax of any kind whatsoever; and 

        (e)  import
or export duties or their equivalent borne by the seller. 

        Any
LICENSED PRODUCT (including its related components) sold or otherwise disposed of in other than an arm's-length transaction or for other property (e.g., barter) shall be deemed
invoiced at its fair market value in the country of sale or disposition. 

        2.8  "SUBLICENSE"
shall mean the present, future or contingent transfer of any license, right, option, first right to negotiate or other right granted under the LICENSED
PATENTS, in whole or in part. SUBLICENSE shall include, without limitation, strategic partnerships, affiliations, and marketing collaborations.

        2.9  "SUBLICENSEE"
shall mean a third party which is granted a SUBLICENSE in accordance with this Agreement. 

        2.10 "TECHNICAL
INFORMATION" shall mean any technical facts, data, or advice, written or oral (in the form of information contained in patents and patent applications,
reports, letters, drawings, specifications, testing procedures, training and operational manuals, bills of materials, photographs and the like) that are directly related to the claims in the LICENSED
PATENTS, are conveyed or delivered to LICENSEE by ANORMED and are not subject to third party rights. 

        2.11 "TERRITORY"
means worldwide. 

3.0    Grant.  

        3.1  Subject
to the terms of this Agreement, ANORMED hereby grants to LICENSEE, and LICENSEE accepts, a nonexclusive, royalty-bearing license under the LICENSED PATENTS and 

3

 

TECHNICAL INFORMATION to import, make, have made, use, sell, offer for sale and have sold LICENSED PRODUCTS in the TERRITORY and for the FIELD OF USE. 

        3.2  LICENSEE
shall not use the LICENSED PATENTS or TECHNICAL INFORMATION outside the FIELD OF USE or for any purpose not licensed under Article 3.1. LICENSEE shall
not sell or provide any LICENSED PRODUCTS to any party that it knows or has reason to believe will use the LICENSED PRODUCTS outside the FIELD OF USE or for a purpose not licensed under
Article 3.1 

        3.3  To
the extent ANORMED has not granted exclusive license rights or otherwise limited its right to grant licenses to the LICENSED PATENTS or TECHNICAL INFORMATION any time
in the future, LICENSEE shall have the right to increase the scope of the license rights under Article 3.1 by enlarging the definition of LICENSED PRODUCT on a
protein-by-protein basis by giving ANORMED thirty (30) days' prior written notice and paying ANORMED on the effective date [*] for each protein
to be added to the definition (i.e., in addition to MCP1 and Annexin); provided, however, that each such protein that may be added to the definition of LICENSED PRODUCT hereunder shall be at least
3,000 Daltons in molecular weight; provided further, that no second or subsequent milestone payments under Article 8.1, second sentence, will be due (i.e., only one milestone payment with
respect to the first of any LICENSED PRODUCT will be due under this Agreement), and all other provisions of this Agreement shall apply to such protein when incorporated in a LICENSED PRODUCT,
including, but not limited to, the earned royalty provisions of Article 8.2 and the minimum royalty payments of Article 8.3, which additional minimum royalty payments shall commence on
June 30 of the second year after the addition of the protein to the definition of LICENSED PRODUCT; and, provided further, that the protein to be added to the definition of LICENSED PRODUCT has
been shown to be a possible product candidate in proof of principle experiments by, and is under development at, LICENSEE or its wholly-owned AFFILIATES. 

4.0    Sublicensing.  

        4.1  LICENSEE
shall have the right to grant sublicenses of its rights under Article 3.1 to its wholly-owned AFFILIATES so long as they remain its AFFILIATES. LICENSEE
and such wholly-owned AFFILIATES receiving sublicense rights may sublicense their rights to third parties only in connection with LICENSED PRODUCTS developed by LICENSEE or such AFFILIATES to the
stage of commencement of dosing of patients in a Phase 1 clinical trial (or the equivalent overseas) in the FIELD OF USE in a MAJOR COUNTRY if the LICENSED PRODUCT contains as an active agent a
protein that is proprietary to (i.e., is owned or controlled by) LICENSEE or such AFFILIATE. 

        4.2  Except
for the provisions of 4.1, LICENSEE shall not have the right to grant SUBLICENSES to LICENSED PATENTS or TECHNICAL INFORMATION. Except for wholly-owned AFFILIATES
who are SUBLICENSEES, SUBLICENSEES shall not have the right to grant SUBLICENSES. 

        4.3  Any
and all SUBLICENSES granted by LICENSEE pursuant to Article 4.1 shall be subject to the terms of this Agreement. LICENSEE shall be responsible for the
performance of all SUBLICENSEES and the payment of all amounts due pursuant to Article 8 with respect to LICENSED PRODUCTS of such SUBLICENSEES. 

        4.4  LICENSEE
shall give ANORMED reasonable advanced written notification of any proposed SUBLICENSES (including the proposed terms, proposed press release, projected
execution date and the name and address of the SUBLICENSEE) and shall promptly provide ANORMED with full and
complete copies of any SUBLICENSE it may grant under Article 4.1 (including any amendments thereto). 

4

 

5.0    Delivery and Handling of Information.  

        5.1  Within
thirty (30) days of the Effective Date, ANORMED shall provide to LICENSEE copies of all patents and patent applications comprising the LICENSED PATENTS. 

        5.2  ANORMED
shall provide LICENSEE with a copy of any future patent applications and issued patents covered by the LICENSED PATENTS that are subject to this Agreement. 

        5.3  At
a two day meeting to be held at ANORMED with scientific staff from LICENSEE or its wholly-owned AFFILIATE, Theseus Imaging Corporation, ANORMED will describe the
chemistry related to the LICENSED PATENTS, including organic synthesis of linkers, conjugation of proteins and radiolabeling, all of which information will be deemed TECHNICAL INFORMATION hereunder.
In addition, LICENSEE shall pay ANORMED [*] upon execution of this Agreement for the half-time services and availability of a full-time equivalent
employee at ANORMED over the next six months to answer questions regarding the use of the chemistry described in the LICENSED PATENTS to make and use LICENSED PRODUCTS. 

        5.4  LICENSEE
shall keep confidential and not disclose or use (except as licensed hereunder) any TECHNICAL INFORMATION (which includes information related to patent
applications) received from ANORMED and/or other information marked, designated and/or treated by ANORMED as confidential. LICENSEE further agrees to use the same degree of care to protect ANORMED's
confidential TECHNICAL INFORMATION from disclosure to unauthorized third parties as it uses to protect its own confidential information. 

        5.5  Except
as required by law, ANORMED shall maintain in confidence and not disclose all information received under this Agreement from LICENSEE designated in writing by
LICENSEE as proprietary and confidential. In the event of a legal request for such information, ANORMED shall inform LICENSEE of such request and cooperate fully to protect such confidential
information. 

        5.6  The
foregoing obligations set forth in Articles 5.4 and 5.5 shall not apply to any information to the extent it (a) was already known to the recipient at the time
of disclosure from sources other than the disclosing party, (b) is or becomes public knowledge through no fault of the recipient, or (c) is received without an obligation of
confidentiality from a third party having a lawful right to disclose the information. 

6.0    Diligence.  

        6.1  During
the term of this Agreement, LICENSEE shall use at least the same level of effort and diligence as LICENSEE and its AFFILIATES uses or in the past has used in
proceeding with other products to: 

        6.1.1  develop,
test and manufacture of LICENSED PRODUCT hereunder; 

        6.1.2  file
for or seek regulatory approvals as may be determined in the business plan; 

        6.1.3  create
a supply and demand for LICENSED PRODUCT; and 

        6.1.4  market
and sell of LICENSED PRODUCT. 

        6.2  ANORMED
may terminate this Agreement if, by October 1, 2002, LICENSEE or its SUBLICENSEE (a) does not have an active investigational new drug application
to permit dosing of human subjects (or a foreign equivalent, "IND") in force in a MAJOR COUNTRY, (b) has not dosed a human subject pursuant to such IND, and (c) is not actively pursuing
clinical trials in a MAJOR COUNTRY for a LICENSED PRODUCT. 

        6.3  If
LICENSEE fails to adhere to the diligence obligations set forth in this Article 6 or elsewhere in this Agreement, ANORMED may terminate this Agreement
immediately upon written 

5

 

notice for breach of Article 6.2 and upon ninety (90) days' prior written notice for breach of Article 6.1 if LICENSEE does not cure such breach of Article 6.1 within such
90-day period. 

        6.4  LICENSEE
shall keep ANORMED informed of its activities, progress and plans with respect to the activities set forth in Article 6.1 through oral or written updates
every six (6) months and a written report thirty (30) days after the end of LICENSEE's fiscal year, which updates and reports shall also include any relevant information pertaining to
LICENSEE's AFFILIATES and SUBLICENSEES. 

7.0    Patent Prosecution  

        7.1  ANORMED,
or its designee, shall have sole control, at its sole discretion, over the filing, prosecution, maintenance and defense of any and all patent applications
included in LICENSED PATENTS, whether pending or not yet filed as of the Effective Date, and the maintenance, defense and other management of any and all issued patents included in LICENSED PATENTS. 

        7.2  ANORMED
shall keep LICENSEE informed of the status of any and all new patents and/or patent applications that are part of LICENSED PATENTS. LICENSEE may provide comments
to ANORMED on courses of action with respect to the filing of new patent applications, prosecution of patent applications, and/or management of patents included in LICENSED PATENTS, provided ANORMED
shall have exclusive authority and discretion to file, prosecute and manage LICENSED PATENTS. 

8.0    Licensing Fees and Payments.  

        8.1  License Issue Fee; Milestone Fee.    LICENSEE shall pay to ANORMED a one-time,
non-refundable, non-creditable license issue fee of [*] upon execution of this Agreement. In addition, LICENSEE shall pay to ANORMED a
one-time, non-refundable, non-creditable milestone fee of [*] within ten (10) days after receiving written notice of the first
regulatory approval to market a LICENSED PRODUCT in any MAJOR COUNTRY by LICENSEE, its AFFILIATE or its SUBLICENSEE. LICENSEE shall promptly inform ANORMED of the expected and actual date for such
approval. 

        8.2  Earned Royalty.    LICENSEE shall also pay to ANORMED earned royalties at a rate of: 

        8.2.1  [*]
of NET SALES on annual NET SALES up to [*]; 

        8.2.2  [*]
of NET SALES on annual NET SALES from [*] to [*]; and 

        8.2.3  [*]
of NET SALES on annual NET SALES greater than [*]. 

It
is recognized and agreed that (a) NET SALES includes NET SALES of LICENSEE, its AFFILIATES and its SUBLICENSEES in all countries of the world, (b) annual NET SALES will be calculated
on the basis of LICENSEE's fiscal year, and (c) earned royalties will only be payable with the respect to LICENSED PRODUCTS, the making, using or selling of which in a country is covered by a
LICENSED PATENT. 

        8.3  Minimum Royalty Payment.    Regardless of NET SALES, LICENSEE shall pay to ANORMED at a minimum, the following
minimum royalties to ANORMED, which amounts shall be fully creditable against earned royalty payments due during the next twelve (12) months, according to the following schedule: 

        8.3.1  First
installment and second installment of [*] each by June 30, 2003 and June 30, 2004; 

        8.3.2  Third
installment and subsequent installments of [*] each by June 30, 2005 and each subsequent June 30. 

6

 

For
the avoidance of doubt, the foregoing minimum royalties and due dates apply to the current definition of LICENSED PRODUCT, and, as additional proteins get added to the definition of LICENSED
PRODUCT pursuant to Article 3.3, additional minimum royalty payments shall be due with respect to such protein added to the definition of LICENSED PRODUCT, such minimum royalty payments to
commence in accordance with Article 3.3 at [*] and to increase to [*] with the third installment (i.e., third year) after commencement, i.e., in
accordance with the timing of installments set forth above in this Article 8.3 after the first installment. 

        8.4  Multiple Royalty.    No multiple earned royalties shall be payable to ANORMED because any LICENSED PRODUCT, its
manufacture, use, or sale is covered by more than one patent application or issued patent included as part of LICENSED PATENTS. 

        8.5  Third Party Royalties.    If LICENSEE is required in the future to pay a fee or royalties to a third party that
is not an AFFILIATE in order to practice the LICENSED PATENTS because the practice is arguably the in vivo diagnosis of cancer in mammals, LICENSEE
shall be entitled to deduct such fee or royalties paid to such third party with respect to a particular LICENSED PRODUCT sold in a particular country from the earned royalty that would be due ANORMED
under Article 8.2 with respect to the sale of such LICENSED PRODUCT in such country. LICENSEE shall promptly notify ANORMED of the entering into an obligation to pay such fee or royalties to a
third party and promptly provide ANORMED with a complete copy of the agreement setting forth such obligation, together with any amendments thereto from time to time. 

        8.6  LICENSEE
shall pay earned royalties to ANORMED within thirty (30) days after the end of each of LICENSEE's fiscal quarters (i.e., 30 days after
October 31, January 31, April 30 and July 31). 

9.0    Reports.  

        9.1  With
each earned royalty payment to ANORMED, LICENSEE shall include a report setting forth the relevant details of the business conducted by LICENSEE and each AFFILIATE
and SUBLICENSEE, if applicable, during the preceding fiscal quarter. This report, for LICENSEE and each AFFILIATE and SUBLICENSEE shall include, at a minimum, the following: (a) the number of
units of each type of LICENSED PRODUCT manufactured, used, or sold by country; (b) the gross amounts invoiced for each type of LICENSED PRODUCT by country; (c) the names and addresses of
any and all SUBLICENSEES; (d) the amount of fees or royalties payable to a third party pursuant to Article 8.5 with respect to sales of each LICENSED PRODUCT in a country; (e) any
and all discounts or allowances granted to third parties; and (f) the calculation of total amounts due ANORMED. With each report, LICENSEE shall give ANORMED an estimate of its projected sales
for the next four quarters and estimate of earned royalties payable thereon to ANORMED. 

        9.2  Until
LICENSEE or any AFFILIATE or SUBLICENSEES engage in commercial use or sale of LICENSED PRODUCTS, LICENSEE shall prepare and submit a report regarding the progress
of LICENSEE and any SUBLICENSEE in developing LICENSED PRODUCTS for commercial exploitation to ANORMED within thirty (30) days of June 30 of each year. Said report shall include such
particulars as are necessary to demonstrate compliance with LICENSEE'S diligence obligations set forth in Article 6 of this Agreement. 

        9.3  On
or before the ninetieth (90th) day following the close of LICENSEE's fiscal year, LICENSEE shall provide ANORMED with LICENSEE's certified financial
statements for the preceding fiscal year, including, at a minimum, a Balance Sheet and an Operating Statement. 

        9.4  All
payments required under this Agreement shall be made in U.S. dollars by wire transfer, check or money order payable to ANORMED, and delivered to ANORMED as specified
in Article 12 of this Agreement; or, if so directed in writing by ANORMED, in such currency, form, and to such account as ANORMED may designate. The rate of exchange to be used in computing the
amount of 

7

 

currency equivalent to the United States dollars shall be the rate of exchange published in the Wall Street Journal (Western Edition) on the last
business day of the calendar quarter in which the NET SALES occurred. 

        9.5  LICENSEE
agrees to pay a late fee for any overdue payments due ANORMED under any of the terms of this Agreement. The late fee shall be computed as the prime rate set
forth by in Wall Street Journal (Western Edition) on the date on which such payment is due plus Two Percent (2%), of the outstanding, unpaid balance.
The payment of such a late fee shall not foreclose or limit ANORMED from exercising any other rights it may have as a consequence of the lateness of any payment. 

        9.6  All
payments under this Agreement shall be made without deduction or withholding for or on account of any tax unless deduction or withholding is required by applicable
law. It is recognized that currently there is no withholding requirement on any royalty payments from the United States to Canada (whether such payments relate to NET SALES in other countries or
otherwise). If LICENSEE is required to deduct or withhold (on such payments from the United States to Canada), LICENSEE shall (a) promptly notify ANORMED of such requirement and
(b) promptly forward to ANORMED an official receipt (or certified copy) or such other documentation reasonably acceptable to ANORMED, to evidence to such payment to such authorities. 

10.0    Record-Keeping and Audit.  

        10.1   LICENSEE
shall keep, and shall cause its AFFILIATES and SUBLICENSEES to keep, complete and accurate records and books of account containing all
information necessary for the computation and verification of the amounts to be paid hereunder. LICENSEE shall keep, and shall cause its AFFILIATES and SUBLICENSEES to keep, these records and books
for a minimum period of five (5) years following the end of the accounting period to which the information pertains. 

        10.2   LICENSEE
shall permit, and shall cause its AFFILIATES and SUBLICENSEES to permit, one or more accountants selected by ANORMED ("Accountant") to have
access to the records and books of account during of LICENSEE, its AFFILIATES and its SUBLICENSEES ordinary working hours in order: (a) to audit any financial records from any relevant payment
period; (b) to audit the correctness of any report or payment made under this Agreement, or (c) to obtain information as to the payments due for any such period where LICENSEE failed to
report or make payment pursuant to the terms of this Agreement. 

        10.3   The
Accountant shall not disclose to ANORMED any information relating to the business of LICENSEE except that which is necessary to inform ANORMED of:
(a) the accuracy or inaccuracy of LICENSEE's reports and payments; (b) compliance or noncompliance by LICENSEE with the terms and conditions of this Agreement; and (c) the extent
of any inaccuracy or noncompliance. 

        10.4   If
the Accountant believes that there may be an inaccuracy in any of the LICENSEE's payments or other forms of noncompliance by the LICENSEE with any of
the terms and conditions of this Agreement, the Accountant shall have the right to make and retain copies (including photocopies) of any pertinent portions of the records and books of account. 

        10.5   In
the event that LICENSEE underreports royalties for any quarterly period by more than Five Percent (5%), the costs of any audit and review initiated by
ANORMED will be borne by LICENSEE. In any other case, ANORMED shall bear its costs of any audit initiated by ANORMED. 

11.0    Term and Termination of Agreement.  

        11.1   The
term of this Agreement shall commence on the Effective Date and shall continue until the last of LICENSED PATENTS expires, unless sooner terminated in
accordance with the provisions set forth in Article 11. 

8

 

        11.2   If
LICENSEE breaches any material obligation imposed by this Agreement then ANORMED may, at its option, send a written notice that it intends to terminate
this Agreement. If LICENSEE does not cure the breach within ninety (90) days from the notice date, then ANORMED shall have the right to immediately terminate this Agreement. In addition,
ANORMED may terminate this Agreement in accordance with Article 6.3. 

        11.3   Subject
to Articles 11.4 and 11.5, LICENSEE shall have the right to terminate this Agreement with or without cause, upon ninety (90) days' prior
written notice to ANORMED. 

        11.4   Upon
termination of this Agreement for any reason, all rights and licenses granted to LICENSEE hereunder shall be terminated; provided, however, that the
parties' obligations under Articles 5.4, 5.5,
5.6, 8 (as to any unpaid amounts), 9, 10, 17, 18, 19, and 20 and any accrued obligations hereunder shall survive termination; and provided further, that the Confidentiality Agreement dated
May 31, 2001 between ANORMED and Theseus Imaging Corporation shall survive termination. 

        11.5   The
provisions under which this Agreement may be terminated shall be in addition to any and all other legal remedies which either party may have for the
enforcement of any and all terms hereof, and do not in any way limit any other legal remedy such party may have. 

12.0    Notices.  

        Any notice or other communication required or permitted to be given by either party hereto shall be deemed to have been properly given and be effective upon the
date of delivery if delivered in writing to the respective addresses set forth below, or to such other address as either party shall designate by written notice given to the other party. If notice or
other communication is given by facsimile transmission, said notice shall be confirmed by prompt delivery of the hardcopy original. 

LICENSEE:

North American Scientific, Inc.

20200 Sunburst Street

Chatsworth, California 91311

ATTN: President

Facsimile Address: (818) 734-5200 

ANORMED:

AnorMED Inc.

#200 - 20353 64th Avenue

Langley, British Columbia

Canada V2Y 1N5

ATTN: President

Facsimile Address: (604) 530.0976 

13.0    Proprietary Rights.  

        LICENSEE will not, by performance under this Agreement, obtain any ownership interest in LICENSED PATENTS, TECHNICAL INFORMATION or any other proprietary rights
or information of ANORMED, its officers, researchers, inventors, or agents. 

14.0    Patent Marking.  

        LICENSEE shall mark, and shall require any SUBLICENSEE to mark, any and all material forms of LICENSED PRODUCTS or packaging pertaining thereto made and sold by
LICENSEE (and/or by its SUBLICENSEES) in the United States with an appropriate patent marking identifying the pendency of any U.S. patent application and/or any issued U.S. or foreign patent forming
any part of LICENSED 

9

 

PATENTS. All LICENSED PRODUCTS shipped to or sold in other countries shall be marked in such a manner as to provide notice to potential infringers pursuant to the patent laws and practice of the
country of manufacture, use or sale. 

15.0    Patent Validity.  

        If any claim challenging the validity or enforceability of any of the LICENSED PATENTS is brought against ANORMED, ANORMED shall promptly notify LICENSEE. 

16.0    Use of Names.  

        Nothing contained in this Agreement shall be construed as conferring any right to use in advertising, publicity or other promotional activities any name, trade
name, trademark or other designation of a party hereto, including any contraction, abbreviation or simulation of any of the foregoing, unless the express written permission of the other party has been
obtained, provided that LICENSEE and ANORMED may state the existence of this Agreement and the fact that both parties entered into it. For any other use other than the foregoing, LICENSEE and ANORMED
hereby expressly agree not to use each other's name without prior written approval. 

17.0    Representations and Warranties; Disclaimers.  

        17.1   ANORMED
represents and warrants that it has the right to grant the license in and to LICENSED PATENTS and disclose the TECHNICAL INFORMATION set forth in
this Agreement. 

        17.2   Nothing
in this Agreement shall be construed as (a) a representation or warranty by ANORMED as to the validity, scope, usefulness or enforceability
of LICENSED PATENTS or (b) a representation or warranty by ANORMED that anything made, used, sold, or otherwise disposed of under any license granted in this Agreement is or will be free from
infringement of patents or other proprietary rights not included in LICENSED PATENTS. 

        17.3   EXCEPT AS SET FORTH IN ARTICLE 17.1, ANORMED MAKES NO OTHER REPRESENTATIONS OR WARRANTIES WITH RESPECT TO LICENSED PATENTS,
TECHNICAL INFORMATION OR LICENSED PRODUCTS AND EXPRESSLY DISCLAIMS ANY AND ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, PATENTABILITY AND NONINFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF OTHER PARTIES. ANORMED'S TOTAL LIABILITY UNDER THIS AGREEMENT IS LIMITED TO THE COSTS AND FEES PAID TO ANORMED
UNDER THIS AGREEMENT. 

18.0    Indemnification.  

        LICENSEE shall indemnify, hold harmless and defend ANORMED, its officers, directors, employees, shareholders and agents against any and all claims, suits, losses,
damages, costs, fees and expenses resulting from or arising out of the exercise of rights under this Agreement including, but not limited to, any claims, damages, losses or liabilities whatsoever with
respect to death or injury to any person and damage to any property arising from the possession, use, manufacture or sale of LICENSED PRODUCTS, LICENSED PATENTS or TECHNICAL INFORMATION by LICENSEE or
its AFFILIATES or SUBLICENSEES or any customers, users or others in any manner whatsoever. This indemnification clause shall survive the termination of this Agreement. 

10

 

19.0    Applicable Law and Venue.  

        19.1   LICENSEE
agrees to abide by all applicable federal, state, local and foreign laws and regulations pertaining to the management and commercial deployment
of LICENSED PRODUCTS under this Agreement and the exercise of license rights hereunder. 

        19.2   The
Parties agree this Agreement shall be governed by and interpreted in accordance with the laws of British Columbia, Canada, regardless of its conflict
of law provisions. 

20.0    General.  

        20.1   If
any provision, or portion thereof, of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions, or portion thereof, shall not be in any way affected or impaired thereby. 

        20.2   No
omission or delay of either party hereto in requiring due and punctual fulfillment of the obligations of any other party hereto shall be deemed to
constitute a waiver by such party of its rights to require such due and punctual fulfillment, or of any other of its remedies hereunder. 

        20.3   No
amendment or modification hereof shall be valid or binding upon the parties unless it is made in writing, cites this Agreement, and signed by duly
authorized representatives of LICENSEE and ANORMED. 

        20.4   Neither
this Agreement nor any right or obligation arising hereunder may be assigned or delegated, in whole or in part, without the prior written consent
of the other party, except to a successor or a purchaser of all or substantially all of the assets of the party related to its pharmaceutical business or, in the case of ANORMED, a wholly-owned
subsidiary of ANORMED located in North America. Any assignment or delegation that is not exempted and that is attempted without such consent shall be of no force and effect. This Agreement shall be
binding upon and inure to the benefit of the successors and permitted assigns of the parties. 

        20.5   The
headings of the several sections of this Agreement are inserted for convenience and reference only, and are not intended to be a part of or to affect
the meaning or interpretation of this Agreement. 

        20.6   This
Agreement, including all attachments hereto and together with the Confidentiality Agreement dated May 31, 2001, between ANORMED and LICENSEE's
wholly-owned subsidiary, Theseus Imaging Corporation (whose obligations thereunder are hereby guaranteed by LICENSEE), embodies the entire understanding of the parties and supersedes all previous
communications, representations, or understandings, either oral or written, between the parties relating to the subject matter hereof. 

        20.7   Neither
party by reason of this Agreement shall be considered an agent, joint venturer or partner of the other party for any purpose whatsoever. 

[This
space intentionally left blank.] 

11

 

        IN
WITNESS WHEREOF, ANORMED and LICENSEE have executed this Agreement, in duplicate originals but collectively evidencing only a single contract, by their respective duly authorized
officers, as of the date first above written. 

	

 	
 	

 	
 	

 	
 	

 
	 LICENSEE	 	ANORMED
	

 	
 	

 	
 	

 	
 	

 
	By:	 	/s/  L. MICHAEL CUTRER      
	 	By:	 	/s/  MICHAEL ABRAMS      

	Name:	 	L. Michael Cutrer	 	Name:	 	Michael Abrams
	Title:	 	President, North American Scientific, Inc.	 	Title:	 	President, AnorMED, Inc.

[*] CONFIDENTIAL TREATMENT REQUESTED. THE REDACTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION.  

12

EXHIBIT A

U.S. PATENTS AND PATENT APPLICATIONS  

	United States Patent No.:	 	5,420,285
	

Title:	
 	

Protein labeling utilizing certain pyridyl hydrazines, hydrazides and derivatives
	

Issue Date:	
 	

May 30, 1995
	

Assignee:	
 	

AnorMED Inc.
	

 	
 	

 
	

United States Patent No.:	
 	

5,206,370
	

Title:	
 	

Certain pyridyl hydrazines and hydrazides useful for protein labeling
	

Issue Date:	
 	

April 27, 1993
	

Assignee:	
 	

AnorMED Inc.
	

 	
 	

 
	

United States Patent No.:	
 	

5,753,520
	

Title:	
 	

Protein labeling
	

Issue Date:	
 	

May 19, 1998
	

Assignee:	
 	

AnorMED Inc.
	

 	
 	

 
	

United States Patent No.:	
 	

6,217,845
	

Title:	
 	

Protein labeling
	

Issue Date:	
 	

April 17, 2001
	

Assignee:	
 	

AnorMED Inc.
	

 	
 	

 
	

United States Patent No.:	
 	

5,350,837
	

Title:	
 	
Complexes with99mTC suitable for radiolabelling monoclonal antibodies or other macromolecules
	

Issue Date:	
 	

September 27, 1994
	

Assignee:	
 	

AnorMED Inc.

QuickLinks

Nonexclusive License Agreement between AnorMED, Inc. and North American Scientific, Inc.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]