Document:

Amendment and Waiver between StockerYale, Inc. and Laurus Master Fund, Ltd.

 Exhibit 10.11 
  
 AMENDMENT AND WAIVER 
  
 This Amendment and Waiver (the “Amendment and Waiver”) is entered into by and between StockerYale, Inc., a Massachusetts corporation (the
“Borrower”), and Laurus Master Fund, Ltd. (“Laurus”) and is effective as of August 10, 2005. 
  
 WHEREAS, the Borrower issued a Secured Convertible Note to Laurus on February 20, 2004 in the aggregate principal amount of $4,000,000 (the
“February 2004 Note”) payable on February 19, 2007 (the “February Note Maturity Date”); 
  
 WHEREAS, the Borrower issued a Secured Convertible Note to Laurus on June 10, 2004 in the aggregate principal amount of $5,000,000 (the “June 2004
Note”) payable on June 30, 2007 (the “June Note Maturity Date”); 
  
 WHEREAS, the Borrower issued a Secured Convertible Note to Laurus on December 8, 2004 in the aggregate principal amount of $500,000 (the “December 2004 Note”, together with the February 2004 Note and
the June 2004 Note, the “Notes”) payable on December 8, 2007 (the “December Note Maturity Date”); 
  
 WHEREAS, pursuant to Section 2.1 of each of the respective Notes, the Borrower is obligated to repay to Laurus 1/32nd of the principal amount (the “Monthly Principal Amount”) of each Note together with interest accrued thereon on the first business
day of each consecutive calendar month starting 120 days following the date of each Note; 
  
 WHEREAS, in July 2005, the Borrower and Laurus agreed to defer the payment of the Monthly Principal Amount due and payable under each Note for the month of July 2005 until the respective maturity dates of each Note,
with such amount to be included with the final payment due with respect to each Note on each Note’s Maturity Date (the “July Deferral”); 
  

WHEREAS, in connection with the July Deferral, the Borrower issued (i) a warrant to Laurus (the “Laurus Warrant”) to purchase 150,000
shares of the Borrower’s common stock (the “Common Stock”) for an exercise price of $0.80 per share, and (ii) a warrant (the “Smithfield Warrant”) to Smithfield Fiduciary LLC (“Smithfield”) to
purchase 18,621 shares of Common Stock for an exercise price of $0.80 per share; 
  
 WHEREAS, in connection with the issuance of the Laurus Warrant and the Smithfield Warrant, Laurus waived, solely with respect to the issuance of the Laurus Warrant and the Smithfield Warrant, the provisions of Section
3.7C of each of the respective Notes with respect to the adjustment of the conversion price set forth in each Note; 
  
 WHEREAS, in connection with the issuance of the Laurus Warrant and the Smithfield Warrant, the parties entered into a Registration Rights Agreement (the
“Registration Rights Agreement”) pursuant to which the Borrower (i) agreed to register for resale on a registration statement to be filed with the Securities and Exchange Commission the Common Stock issued 

 
or issuable upon exercise of the respective warrants, and (ii) granted the parties certain piggyback registration rights (the “Piggyback Registration
Rights”); 
  
 WHEREAS, the Borrower wishes to defer the
payment of the Monthly Principal Amount due and payable under each of the Notes for the months of August and September 2005 until the respective maturity dates of each Note and Laurus wishes to allow the Borrower to defer payment of such Monthly
Principal Amounts due for the months of August and September 2005 and furthermore, to allocate and include such amounts with the final payments due with respect to each Note on each Note’s respective Maturity Date, as is more fully described in
Sections 1, 2 and 3 below (collectively, the “August Deferral”); 
  
 WHEREAS, in connection with the August Deferral, the Borrower has agreed to issue 225,000 newly issued shares of Common Stock to Laurus (the “August Shares”), with Piggyback Registration Rights to be
granted to Laurus with respect to such shares; 
  
 WHEREAS, in
connection with the August Deferral, each of Laurus and Smithfield has indicated a willingness to terminate all of the Borrower’s obligations to file a registration statement pursuant to Section 2 of the Registration Rights Agreement, but such
parties are not willing to waive their Piggyback Registration Rights thereunder with respect to such securities; and 
  
 WHEREAS, in connection with the August Deferral, Laurus has agreed to unconditionally and irrevocably waive the provisions of Section 3.7C of each of the
respective Notes regarding the adjustment of the Conversion Price (as defined in each Note) but solely with respect to (i) the issuance of the August Shares,(ii) the issuance of securities by the Borrower in its next equity financing or financings
(which shall be consummated no event later than October 1, 2005) with gross proceeds to the Borrower not to exceed $2,500,000 in the aggregate (the “PIPE Shares”) and (iii) up to 23,684 shares of Common Stock to be issued to
Smithfield on or about the date hereof, and Laurus has further agreed that the Conversion Price set forth in each of the Notes (as defined in each such Note) shall remain unaffected as a result of the issuance and sale of the August Shares and the
PIPE Shares. 
  
 NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
  
 I. DEFERRAL OF AUGUST AND SEPTEMBER 2005 PRINCIPAL PAYMENTS; WAIVER OF CERTAIN REGISTRATION RIGHTS; ISSUANCE OF SHARES; WAIVER OF CONVERSION PRICE ADJUSTMENT.

  
 1. February 2004 Note. Laurus hereby agrees that
the Monthly Principal Amount for each of August and September 2005 due from the Borrower to Laurus under the February 2004 Note is hereby deferred until the February Note Maturity Date, at which time the Monthly Principal Amount due in August and
September 2005 shall be paid in full along with the final payment due on such date. Notwithstanding the foregoing, the Borrower shall be obligated to pay all of the Monthly Interest Amount (as defined in the February 2004 Notes) when due.

  

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 2. June 2004 Note. Laurus hereby agrees that the Monthly Principal Amount for each of August and
September 2005 due from the Borrower to Laurus under the June 2004 Note is hereby deferred until the June Note Maturity Date at which time the Monthly Principal Amount due in August and September 2005 shall be paid in full along with the final
payment due on such date. Notwithstanding the foregoing, the Borrower shall be obligated to pay all of the Monthly Interest Amount (as defined in the June 2004 Notes) when due. 
  
 3. December 2004 Note. Laurus hereby agrees that the Monthly Principal Amount for each of August and September 2005
due from the Borrower to Laurus under the December 2004 Note is hereby deferred until the December Note Maturity Date at which time the Monthly Principal Amount due in August and September 2005 shall be paid in full along with the final payment due
on such date. Notwithstanding the foregoing, the Borrower shall be obligated to pay all of the Monthly Interest Amount (as defined in the December 2004 Notes) when due. 
  
 4. Issuance of August Shares. 
  
 (a) The Borrower hereby agrees to issue to Laurus, on the date hereof, the August Shares. The Borrower shall deliver to
Laurus an original, newly issued stock certificate evidencing such August Shares within seven (7) business days after the date hereof. 
  
 (b) This Amendment and Waiver is made with Laurus in reliance upon Laurus’ representation to the Borrower, which by Laurus’ execution of this
Amendment and Waiver, Laurus hereby confirms, that the August Shares to be acquired by Laurus will be acquired for investment for Laurus’ own account, not as a nominee or agent, and not with a view to the resale or distribution of any part
thereof, and that Laurus has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Amendment and Waiver, Laurus further represents that Laurus does not presently have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the August Shares. Laurus has not been formed for the specific purpose of acquiring the
August Shares. Laurus agrees and acknowledges that it has had an opportunity to discuss the Borrower’s business, management, financial affairs and the terms and conditions of the offering of the August Shares with the Borrower’s
management. Laurus understands that the August Shares have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), by reason of a specific exemption from the registration provisions
of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of Laurus’ representations as expressed herein. Laurus understands that the August Shares are “restricted
securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, Laurus must hold the Shares indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state
authorities, or an exemption from such registration and qualification requirements is available. Laurus hereby represents and warrants to the Borrower that Laurus is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under
the Securities Act. Laurus acknowledges that the Borrower has no obligation to register or qualify the August Shares, or the Common Stock into which it may be converted, for resale 

  

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except as is otherwise set forth in this Amendment and Waiver and the Registration Rights Agreement. Laurus further acknowledges that if an exemption from
registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the August Shares, and on requirements relating to the Borrower which are
outside of Laurus’ control, and which the Borrower is under no obligation and may not be able to satisfy. 
  
 (c) Laurus understands that the August Shares may bear the following legend: 
  
 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.” 
  
 Certificates evidencing the August Shares shall not be required to contain the legend set forth above or any other legend (i) while a Registration Statement covering the resale of such August Shares is effective under the Securities Act;
provided that the holder thereof covenants that in connection with each sale of such securities, a copy of the final prospectus that forms a part of such Registration Statement will be delivered in accordance with the provisions of Section 5(b)(2)
of the Securities Act, and the rules and regulations promulgated thereunder, or (ii) following any sale of such Securities pursuant to Rule 144 under the Securities Act, or (iii) if such August Shares are eligible for sale under Rule 144(k) under
the Securities Act, or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the Staff of the Securities and Exchange Commission). The Borrower shall
cause its counsel to issue the legal opinion to permit the removal of the legend as permitted in the immediately preceding sentence to the Borrower’s transfer agent on the effective date of the Registration Statement covering the resale of the
August Shares. Following the effective date of such Registration Statement or at such earlier time as a legend is no longer required for the August Shares, the Borrower will no later than three trading days following the delivery by Laurus to the
Borrower or the Borrower’s transfer agent of a legended certificate representing such August Shares, deliver or cause to be delivered to Laurus a certificate representing such August Shares that is free from all restrictive and other legends.

  
 5. Piggyback Registration Rights. The Registration
Rights Agreement is hereby amended to terminate all of the Borrower’s obligations to file a registration statement pursuant to Section 2 of the Registration Rights Agreement. For the avoidance of doubt, all other rights and obligations of the
parties arising under the Registration Rights Agreement, including with respect to Piggyback Registration Rights, shall not be affected in any way or manner by the amendment described in the foregoing sentence. In addition, the definition of
“Registrable Shares” (as defined in the Registration Rights Agreement) is hereby amended to 

  

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mean “the August Shares and the shares of Common Stock issued or issuable upon exercise of the Warrants.” 
  
 6. Conversion Price. Laurus hereby unconditionally and irrevocably
waives the provisions of Section 3.7C of each of the respective Notes regarding the adjustment of the Conversion Price (as defined in each Note) that would otherwise be triggered as a result of the issuance of the August Shares and the PIPE Shares,
and hereby agrees that the Conversion Price set forth in each of the Notes (as defined in each such Note) shall remain unaffected as a result of the issuance and sale of the August Shares, the PIPE Shares and up to 23,684 shares of Common Stock to
be issued to Smithfield on or about the date hereof. This waiver relates exclusively to the issuance of the August Shares, the PIPE Shares up to 23,684 shares of Common Stock to be issued to Smithfield on or about the date hereof, and shall not
apply to any other subsequent issuances of any Common Stock or other securities by the Borrower. 
  
 II. MISCELLANEOUS. 
  
 1. No Other Amendments. Except as expressly set forth in this Amendment and Waiver, no other term or provision of any of the Notes is hereby amended or affected in any way, and the Notes shall remain in full force and effect after
the date hereof. 
  
 2. Governing Law. This Amendment and
Waiver shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws. 
  
 3. Facsimile Signatures; Counterparts. This Amendment and Waiver may be executed by facsimile signatures and in any number of counterparts, each of
which shall be an original, but all of which together shall constitute one instrument. 
  
 * * * * * 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Amendment and Waiver as of the date set forth
in the first paragraph hereof. 
  

			
	 STOCKERYALE, INC.

		
	By:	 	 /s/ Mark W. Blodgett

	 	 	 Mark W. Blodgett

	 	 	 President and CEO

  

			
	 LAURUS MASTER FUND, LTD.

		
	By:	 	 /s/ David Grin

	 Name:
	 	 David Grin

	 Title:
	 	 Director

  

 6Stock and Warrant Purchase Agreement dated August 12, 2005

 EXHIBIT 10.12 
  
 STOCK AND WARRANT PURCHASE AGREEMENT 
  
 STOCK AND WARRANT PURCHASE AGREEMENT (this “Agreement”), dated as of August 12, 2005, 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 $2,500,000 of its shares (the “Shares”) of Common Stock (as defined below) at the price
per share of Common Stock negotiated with each purchaser and warrants (the “Warrants”) to purchase such number of shares of Common Stock of the Company as is equal to one-third of the number of Shares sold by the Company, 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 and Warrants 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. 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 and
Warrants 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 and Warrants sold in the Private Placement. 
  
 2. Purchase of Common Stock and Warrants. 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, 

 
(a) at $0.90 per share of Common Stock (the “Per Share Purchase Price”), 2,222,222 shares of Common Stock (the “Investor
Shares”), and (b) warrants (the “Investor Warrants”) to purchase an aggregate of 740,741 shares of Common Stock, which Investor Warrants shall be exercisable for a period of five years at an exercise price of $1.17 per
share. The aggregate purchase price for the Investor Shares and the Investor Warrants shall be $2,000,000 (the “Aggregate Purchase Price”). 
  
 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 and Investor Warrants 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 Investor Warrants; 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 and the Investor Warrants 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 Company has offered and made available to the
Investor a Confidential Offering Memorandum dated as of July 27, 2005 (the “Memorandum”) containing information regarding the Company and the Private Placement. The Investor has declined to accept the Memorandum in connection with
its investment. 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 

  

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and Investor Warrants, and has consulted with its advisors concerning the proposed investment in the Company. The Investor is intentionally making the
investment in the Public Placement knowing that there may be material non-public information regarding the Company of which the Investor is not aware. The Investor is generally aware of the Company’s business affairs and financial condition and
has acquired sufficient information about the Company, its management, financial condition, business and operations and substantial risks associated with the investment in the Private Placement to reach an informed and knowledgeable decision to
acquire the Investor Shares and Investor Warrants. The Investor understands that an investment in the Company involves a high degree of risk and the Investor is knowingly assuming all such risks relating to its investment. 
  
 (2) The Investor has decided to invest in the Investor
Shares and Investor Warrants 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 and Warrants. 
  
 (3) The Investor represents that the Investor (or, if applicable, each managed account on whose behalf the
Investor Shares and Investor Warrants 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 and Investor Warrants are being purchased) has
such knowledge and experience in financial and business matters as to be capable of evaluating the merits and numerous substantial risks of an investment in the Investor Shares and Investor Warrants, is capable of making an informed investment
decision and can bear the economic risk of loss of the entire investment in the Investor Shares and Investor Warrants being purchased. 
  
 (4) The Investor understands and expressly acknowledges and agrees that none of the Investor Shares, Investor Warrants or shares issuable
upon exercise of the Investor Warrants (collectively, “Warrant Shares”) have 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. 
  

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 (5) The Investor understands and agrees that the Investor Warrants and all certificates
representing the Investor Shares and Warrant 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.” 
  
 (6) The Investor (or, if applicable, each managed account on whose behalf the Investor Shares and Investor Warrants are being purchased by
the Investor) will acquire the Investor Shares and Investor Warrants 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 and Investor Warrants. 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, Investor Warrants and Warrant 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, Investor Warrants, Warrant 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 

  

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the economic benefits or risks of ownership of the Investor Shares, the Investor Warrants and the Warrants 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, the Investor Warrants or the Warrant 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, the Investor Warrants and the Warrant Shares are not transferable on the books of the Company unless the certificate submitted to the transfer agent evidencing the Investor Shares, the
Investor Warrants or the Warrant Shares (as applicable) 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, the Investor Warrants or the Warrant 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 and agrees that, notwithstanding anything else in this Agreement to the
contrary, there may be times when the Company may suspend the use of the prospectus forming a part of a registration statement (or otherwise render the registration statement unavailable) 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 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, Investor Warrants or Warrant 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 

  

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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 sixty (60) business days per suspension and the Company may not exercise this right to suspend the use of such prospectus more than two times 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. If the Investor is any other form of business
entity, it is duly organized or formed, validly existing and in good standing under the laws of its jurisdiction of organization, with full power and authority to perform its obligations under this Agreement. 
  
 (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 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 

  

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trust has independently determined that the purchase of the Investor Shares and Investor Warrants 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) 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.

  
 (G) 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. 
  
 (H) 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 the Investor Shares and Investor Warrants as an “accredited investor;” (b) if the
Investor is acting on behalf of a managed account in the purchase of any Investor Shares and Investor Warrants, 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 

  

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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 prompt written notice of such changes. The Investor further represents and warrants that it is not purchasing the Investor Shares and Investor Warrants 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 and the Investor Warrants. 
  
 (15) The Investor hereby covenants and agrees not to disclose any confidential information provided to the Investor by the Company 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.

  

 8 

 (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, 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, Investor Warrants and Warrant Shares have been duly authorized by the Company, and when issued and delivered by
the Company against payment therefor as contemplated hereby (and, as to the Warrant Shares, as contemplated by the Investor Warrants), the Investor Shares, Investor Warrants and Warrant 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 would 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, the Investor Warrants, the Warrant 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 would not reasonably be expected to have a Material Adverse Effect. 
  

 9 

 (5) The balance sheets of the Company for the twelve months ended December 31, 2004 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 December 31, 2004. There has been no material adverse change in the financial condition or business or results of operations of the Company or its subsidiaries since December 31, 2004. 

 
 (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 Investor Warrants and certificates for the Investor Shares and
Warrant Shares delivered pursuant hereto shall survive the execution of this Agreement, the delivery to the Investor of the Investor Shares, the Investor Warrants and the Warrant 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 and Warrant 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. 
  
 (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 or Warrant Shares
in such underwriting unless the Investors thereof accept 

  

 10 

 
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 and Warrant Shares to be offered, the Company shall not be required to register Investor Shares or Warrant 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 and Warrant 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 and Warrant 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 and Warrant 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 and Warrant 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 as soon as reasonably practicable a registration statement on Form S-3 under Rule 415 under the Securities Act, or other eligible form of registration statement if Form S-3 is not then available to the
Company (the “Registration Statement”) to enable the public offering and sale of the Investor Shares and Warrant Shares by the Investor from time to time through the NASDAQ National Market, the Nasdaq SmallCap Market, the
over-the-counter market or in privately-negotiated transactions or otherwise. 
  
 (B) Use commercially reasonable efforts, subject to receipt of necessary information from the Investor, to cause the Registration
Statement to become effective within 120 days after the Closing. 
  

 11 

 (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 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 and Warrant Shares registered under the Registration Statement (and to each underwriter, if any, of such Investor Shares and Warrant 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 or Warrant
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 and the
Warrant Shares on a Registration Statement in accordance with the terms of this Agreement and to allow such Investor Shares and Warrant 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 and Warrant Shares, make publicly available other information so long as necessary
to permit sales under Rule 144 under the Securities Act), all to 

  

 12 

 
the extent required from time to time to enable the Investor to sell Investor Shares and Warrant 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. 
  
 A questionnaire related to the Registration Statement to be completed by the Investor is attached hereto as Annex IV. 
  
 (b) Transfer of Shares and Warrants. The Investor agrees not to effect
any disposition of the Investor Shares, the Investor Warrants or the Warrant Shares or the right to purchase the Investor Shares, Investor Warrants or the Warrant 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, the Investor Warrants and the Warrant 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 such time as is reasonably necessary or appropriate 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. 
  

 13 

 (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 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 

  

 14 

 
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 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 

  

 15 

 
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 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 and Warrant Shares shall cease and terminate as to any particular number of the Investor Shares and Warrant Shares when such Investor Shares and Warrant 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 and Warrant Shares or when such Investor Shares and Warrant Shares shall have been sold or
otherwise 
  

 16 

 
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 and Warrant Shares. 
  
 (g) Information Available. So long as a registration statement is effective covering the resale of the Investor Shares and the Warrant 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-K 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-Q 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; 
  
 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 the Warrant 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) Remedies. It is understood and agreed that any breach of the provisions of this Agreement by either party hereto will result in irreparable
injury to the other party hereto, that the remedy at law alone will be an inadequate remedy for such breach, and that, in addition to any other legal or equitable remedies which such party may have, such party may enforce its rights by actions for
specific performance (to the extent permitted by law). 
  

 17 

 (b) 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. 
  
 (c) 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. 
  
 (d) 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. 
  
 (e) 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. 
  
 (f) 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: 
  
 if to
the Company, to: 
  

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

  

 18 

 with a copy mailed to: 
  

			
	Browne Rosedale & Lanouette LLP
	31 St. James Avenue, Suite 850
	Boston, MA 02116
	Attn:    Thomas B. Rosedale

  
 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. 
  
 (g) 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] 
  

 19 

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

  

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

	 	 	Mark W. Blodgett
	 	 	President CEO

  
 Accepted and Agreed as of the
date 
 first above written: 
  
 The Eureka Interactive Fund Limited 
  

			
	By:	 	 /s/ Mark Hawtin

	 	 	 Name: Mark Hawtin
 Title: Partner, Marshall Wace LLP,
Investment Manager of the Eureka Interactive
Fund Limited

  

			
	Address:	 	  

	 	 	  

	 	 	  

	
	 Telephone:  

	
	 Facsimile:

	
	Nominee (name in which Investor Shares and Warrant 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. 
  

 20

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