Document:

Prepared by MerrillDirect

PROMISSORY
NOTE

	$­86,902	May 9, 2001

             For
value received, Brian Derr ("Executive") promises to pay to
the order of Apropos Technology, Inc., an Illinois corporation (the "Company"),
at its offices in Oak Brook Terrace, Illinois, or such other place as is designated
in writing by the holder hereof, the aggregate principal sum of $86,902 in
eight equal quarterly installments of $10,862.75, commencing April 1, 2002, and
subsequent payments due on the first business day of each July, October,
January and April thereafter.  Subject
to the provisions of this Note, including provisions regarding the acceleration
of this Note , the remaining principal amount of this Note (together with
unpaid interest due thereon) shall become due in full on the earlier of (i)
January 2, 2004, or (ii) the thirtieth day following the last day that
Executive is employed by a "Company Entity," unless, in the case of
(ii), termination of employment is a result of a "Permitted
Termination."  The date of
maturity, whether as a result of (i) or (ii) above or earlier acceleration is
referred to as the "Maturity Date."

	•	"Permitted
  Termination" shall mean (i) a termination by a Company Entity other than
  for "Cause," (ii) a termination by the Executive for "Good
  Reason," or (iii) the death or "Permanent Disability" of the
  Executive.
	 	 
	•	"Company
  Entity" shall mean the Company, a subsidiary or their successors and
  assigns.
	 	 
	•	"Cause"
  shall mean the termination of employment of Executive as a result of (i) any
  act or acts of dishonesty undertaken by Executive and intended to result in
  substantial gain or personal enrichment of Executive at the expense of the
  Company, (ii) persistent failure by Executive to perform the duties and
  obligations of Executive's employment which are not remedied in a reasonable
  period of time after receipt of written notice from the Company; (iii) the
  conviction of Executive of a felony; or (iv) Executive's continued breach of
  any material term of any employment agreement between the Company and the
  Executive or a breach of the noncompetition, nondisclosure and developments
  agreement between the Company and Executive.
	 	 
	•	"Permanent
  Disability" shall mean that the Executive, at the time notice of
  termination is given, has been unable to perform his/her duties to the
  Company for a period of not less than six (6) consecutive months or for a
  period of two hundred seventy (270) days in any three hundred sixty-five
  (365) day period as the result of his incapacity due to physical or mental
  illness.
	 	 
	•	"Good
  Reason" shall mean termination by Executive of his/her employment as a
  result of (i) a material reduction in Executive's salary or benefits not
  agreed to by Executive (except in connection with a decrease to be applied
  because the Company's performance has decreased or which is also applied to
  employees or executives generally, and excluding the substitution of
  compensation and benefits substantially equivalent in value), (ii) a material
  change in Executive's responsibilities (other than as contemplated by, and
  consistent with the spirit of, any employment agreement between the Company
  and Executive) not agreed to by Executive or (iii) a breach by the Company of
  any employment agreement between the Company and Executive which is not cured
  within a reasonable time after written notice of breach to the Company.

 

             Subject
to the last sentence of this paragraph, interest shall accrue on the
outstanding principal amount of this Note, commencing on the date hereof and
with respect to each quarter, at a rate per annum equal to (i) the then current
yield on commercial paper issued by GE Capital Corp. with maturities of 60-89
days, as published in The Wall Street Journal on the last business day
of the immediately preceding calendar quarter, plus (ii) one-half of one
percent. Subject to the last sentence of this paragraph, interest shall be
compounded quarterly, and shall be payable on the first business day of each
calendar quarter, commencing April 1, 2002. 
If the Executive remains an employee of a Company Entity through January
2, 2004 (or ceases to be an employee prior to such time as a result of a
Permitted Termination), interest after January 2, 2004 shall no longer accrue
on the unpaid portion of this Note, unless and until Executive is entitled to
receive the benefit of AMT Recoveries (as hereinafter defined), and then
interest shall accrue only on the lesser of (i) the amount of AMT Recoveries,
and (ii) the unpaid balance of this Note; it being understood that such
interest shall begin accruing on the date Executive realizes the benefit from
the AMT Recoveries and shall continue until such amount is paid to Company.

             The
principal amount of this Note (together with all interest accrued and unpaid
thereon) may be prepaid on or prior to the Maturity Date.  Amounts not paid as provided herein,
including any past due interest, shall bear interest at the rate of two
percentage points above the applicable interest rate.

                           This
promissory note (the "Note") evidences a loan made to
Executive solely to fund certain alternative minimum tax ("AMT")
obligations of Executive arising on account of Executive's exercise of
incentive stock options to purchase Common Shares of the Company.  As an inducement to the Company to make this
loan, the Executive represents that (i) to the best of his knowledge, any
financial information previously delivered to the Company is true and correct
in all material respects, including tax return schedules, (ii) to the best of
his knowledge, the worksheet he has delivered to the Company computing his AMT
liability is true and correct in all material respects, and (iii) all of the
proceeds of the loan evidenced by this Note will be used to discharge such AMT
liability.

             The
Executive further consents and agrees that (i) he promptly shall provide
evidence of the AMT payment to the Company, (ii) he promptly shall provide to
the Company copies of all future tax returns both before and after the Maturity
Date if any amounts remain outstanding hereunder, (iii) he shall use any
available credits against taxes arising from the payment of the AMT (the “AMT
Credit”) against future tax obligations as soon as the AMT Credits are
available for use and promptly notify the Company in writing upon such use,
with supporting detail, and (iv) in the event there is a change in the United
States tax laws which results in the availability of a refund in connection
with Executive’s AMT liability, then the Executive shall use his best efforts
to obtain such refund and any related interest as soon as reasonably
practicable (collectively, the “AMT Refund”).

             The
amounts due under this Note are secured by a pledge of Common Shares of the
Company and possibly certain other assets (such collateral, as it exists from
time to time being "Pledged Collateral"), pursuant to a
certain Executive Stock Pledge, Security and Retention Agreements, dated as of
the date hereof, by and between the Company and Executive (the "Pledge
Agreement").

             Except
as to the greater of the amount of the AMT Recoveries and five percent of the
principal amount of this Note, for which amount Executive shall remain
personally liable both before and after the Maturity Date, this Note, and the
loan represented by this Note, shall be non-recourse against Executive, with
the sole recourse limited to the Pledged Collateral as provided in the Pledge
Agreement.  Notwithstanding the
foregoing, if Executive's employment with the Company Entity terminates before
January 2, 2004, other than as a result of a Permitted Termination, this Note
shall be fully recourse and Executive shall be fully personally liable
hereunder, notwithstanding any action taken or not taken under the Pledge
Agreement.  Executive agrees that to the
extent of his personal liability, the Holder of this Note may, but need not,
enforce this Note prior to proceeding against the Pledged Collateral.

             Notwithstanding
anything herein to the contrary, the outstanding principal amount of this Note
(together with interest accrued thereon) shall become immediately due and
payable whether before or after the Maturity Date:

	(w)	to
  the extent of the proceeds (whether cash or other property) of the Pledged
  Collateral resulting directly or indirectly from either of the following
  events: (i) Executive sells, pledges or otherwise transfers the Pledged
  Collateral, whether or not in violation of the Pledge Agreement, or(ii) a
  transaction occurs involving the Company (whether by merger, asset sale,
  stock sale or otherwise);
	 	 
	(x)	to
  the extent of the amount of the AMT Credit applied by the Executive or his
  successors against future tax obligations;
	 	 
	(y)	to
  the extent of any AMT Refund received by the Executive (the AMT Credit and
  the AMT Refund are collectively referred to as the “AMT Recoveries”);
  and
	 	 
	(z)	if
  there is a breach or default by Executive under this Note or under the Pledge
  Agreement, which breach or default, if capable of being cured, has not been
  cured within five (5) days written notice by the Company.

The amount of the proceeds in (w) shall
be computed net of any out of pocket taxes due as a result of such transaction
(i.e., after utilization of the AMT Credit), computed at the maximum applicable
combined state and federal marginal rate (the "Associated Tax Liability").

             Executive
hereby expressly waives any right to a trial by jury in any action or
proceeding to enforce or defend any rights (i) under this Note or under any
amendment, instrument, document or agreement delivered or which may in the
future be delivered in connection herewith, including the Pledge Agreement, or
(ii) arising from any lending relationship existing in connection herewith, and
agrees that any such action or proceeding will be tried before a court and not
before a jury.  Executive agrees that it
will not assert any claim against the Company on any theory of liability, for
special, indirect, consequential, incidental or punitive damages.

             Executive,
for himself and for his successors and assigns, hereby waives diligence,
presentment, protest and demand and notice of protest, demand, dishonor and
nonpayment of this Note, and expressly agrees that this Note, or any payment
hereunder, may be extended from time to time and that the holder hereof may
accept security for this Note, or release security for this Note, all without
in any way affecting the liability of Executive hereunder.

             This
Note shall be governed by the internal laws, not the laws of conflicts, of the
State of Illinois.  The parties hereto
agree that all claims, disputes or controversies between them arising out of,
connected with or related to the matters contemplated by this Note, whether
arising at law or equity, in contract, tort, or otherwise, if pursued in court
shall be resolved only by state or federal courts located in Cook or DuPage
Counties, Illinois.  Each party waives
in all disputes any objection that it may have to personal jurisdiction, the
venue of the court considering the dispute, or the convenience of the forum.

	 	Brian Derr
	 	

	 	ExecutivePrepared by MerrillDirect

Exhibit 10.3(e)

STOCKERYALE, INC.

AMENDMENT NO. 1 TO THE

2000 STOCK OPTION AND INCENTIVE PLAN

             This AMENDMENT NO. 1 dated as of
March 19, 2001 (this “Amendment”) to the StockerYale, Inc. 2000 Stock Option
and Incentive Plan, as approved by the Board of Directors of StockerYale, Inc.
(the “Company”) as of March 19, 2001 (the “Plan”), is adopted by the Board of
Directors, subject to the approval of the stockholders of the Company, on the
date hereof.  All capitalized terms used
and not defined herein shall have the meanings ascribed to such terms in the
Plan.

             Pursuant to Section 15 of the Plan,
the Board of Directors hereby amends the first sentence of Section 3(a) of the
Plan by deleting it in its entirety and replacing it with the following:

	 	(a)	Stock
  Issuable.  The maximum number of
  shares of Stock reserved and available for issuance under the Plan shall be
  2,800,000 shares of Stock, subject to adjustment as provided in Section 3(b);
  provided that not more than 200,000 shares shall be issued in the form of
  Unrestricted Stock Awards, Restricted Stock Awards, or Performance Share
  Awards except to the extent such Awards are granted in lieu of cash
  compensation or fees.

 

             Except as so amended, the Plan in
all other respects is confirmed and ratified and shall remain and continue in
full force and effect.

Adopted by the Board of Directors: March 19, 2001

Approved by the
Stockholders:  May 24, 2001

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