Document:

<PAGE>
                                                                   Exhibit 10.27

2001-04-09                   OFFER OF LOAN GUARANTEE                 Page 1 of 9
                                  (TRANSLATION)

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BY:  GARANTIE QUEBEC, a company legally constituted under the Act respecting
     Investissement-Quebec and Garantie-Quebec (R.S.Q. , c. I-16.1), having its
     head office at 1200 Route de l'Eglise, Suite 500, Sainte-Foy, Quebec, G1V
     5A3, and having a place of business at 393 Rue Saint-Jacques, Suite 500,
     Montreal, Quebec, H2Y 1N9, hereinafter called G.Q.

TO:  HENRY BIRKS & SONS HOLDING INC. and HENRY BIRKS & SONS INC., duly
     constituted legal persons having their principal place of business at 1240
     Phillips Square, Montreal (Quebec) H3B 3H4, hereinafter collectively
     referred as the Company.

1.   LOAN GUARANTEE
     --------------

     1.1  G.Q. offers the Company a guarantee, hereinafter referred to as the
          Guarantee, in the form of a suretyship of sixty-five percent (65%) of
          the net loss on a loan, hereinafter referred to as the Loan, for the
          maximum amount of three million dollars ($3,000,000), granted by GMAC
          COMMERCIAL CREDIT CORPORATION -- CANADA, pursuant to a Loan Agreement
          entered into between the Lender and the Company on October 15, 1996
          and amended thereafter by letters dated July 23, 1998, June 8, 1999,
          September 23, 1999, May 2, 2000 and January 30, 2001, hereinafter
          collectively referred to as the Loan Agreement.

     1.2  For the purposes of the Guarantee, the net loss is defined as the sum
          of the interest and the principal of the Loan authorized for
          disbursement by G.Q., due and unpaid on the Loan recall date, plus the
          accrued interest for a maximum period of three (3) months effective
          from the Loan recall date, after deducting the net proceeds of
          realization of the security granted to secure repayment of the Loan,
          it being understood, however, that the interest accrued on and since
          the Loan recall date shall at no time exceed, in the calculation of
          the net loss, ten percent (10%) of the balance of the principal of the
          Loan at the time of its recall.

     1.3  The Loan shall serve exclusively to finance the renovation and new
          store opening project, which along with its financing, is established
          as follows:

          Project
          -------
<TABLE>
          <S>                                                      <C>
          - New Victoria store location                            $     622,100
            Government Street (British Columbia)
          - Southgate store renovation (Alberta)                   $     473,500
          - Chinook store renovation (Alberta)                     $     532,600
          - Hillside store renovation (British Columbia)           $     254,300
          - New "Canada 1" store outside Quebec                    $     495,000
          - New "Canada 2" store outside Quebec                    $     495,000
          - Renovation or new location of a store outside Quebec
            (London, Halifax or others)                            $     458,000
                                                                   -------------
                                                             Total $3,330,500.00
                                                                   -------------
</TABLE>

--------------------    ---------------------------    -------------------------
Initials of G.Q.'s      Initials of the Company's
representative          representative

<PAGE>
2001-04-09                   OFFER OF LOAN GUARANTEE                 Page 2 of 9
                                  (TRANSLATION)

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          Financing
          ---------
<TABLE>
          <S>                                                      <C>

          - Term loan (65% guaranteed)                             $3,000,000.00
          - Working capital                                        $  330,500.00
                                                                   -------------
                                                             Total $3,330,500.00
                                                                   -------------
</TABLE>

          Project start date: 2000-06-01    Project end date: 2001-11-30
          -------------------               -----------------

2.   TERM OF THE GUARANTEE
     ---------------------

     The Guarantee is granted for a period of five (5) years from the date of
     the first advance on the Loan.

3.   COMMITMENTS TO FULFILL BEFORE THE GUARANTEE COMES INTO FORCE
     ------------------------------------------------------------

     3.1  Before the Guarantee comes into force, the Company shall have
          fulfilled the following conditions to G.Q.'s satisfaction, namely:

          3.1.1   The minimum security detailed in subsection 7.1 hereof shall
                  have been validly granted by the Company and a written
                  confirmation to this effect received from GMAC (GMAC
                  Commercial Credit Corporation -- Canada);

          3.1.2   The Company undertakes to fulfill the commitments included in
                  the Lender's letter of offer accepted by the Company on
                  January 30, 2001;

          3.1.3   Commitment to maintain the current level of employment for the
                  term of the guarantee, namely more than 300 jobs in Quebec.

4.   FEES
     ----

     4.1  COMMITMENT FEE
          --------------

          4.1.1   This offer is subject to the payment of management fees,
                  hereinafter referred to as the Commitment Fee, of one percent
                  (1%) of the amount of the Loan, namely thirty thousand dollars
                  ($30,000).

          4.1.2   The Commitment Fee, the balance of which shall be paid to G.Q.
                  upon acceptance of this offer, shall not be refundable, in
                  whole or in part, under any circumstances.

          4.1.3   The mere cashing of the Commitment Fee shall not create any
                  right in favour of the Company and shall in no way oblige G.Q.
                  to bring the Guarantee into force in any way; these rights and
                  obligations shall only be generated provided that the terms
                  and conditions mentioned in this offer are fulfilled.

--------------------    ---------------------------    -------------------------
Initials of G.Q.'s      Initials of the Company's
representative          representative

<PAGE>

2001-04-09                   OFFER OF LOAN GUARANTEE                 Page 3 of 9
                                  (TRANSLATION)

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     4.2  STANDBY FEES
          ------------

          4.2.1   Upon each advance on the Loan, a standby fee of two percent
                  (2%), calculated on the amount of the advance, shall be
                  payable to G.Q. upon receipt by the Company of an invoice to
                  that effect. The fees thus payable shall be adjusted in
                  proportion to the number of days remaining between the Loan
                  disbursement date and March 31 of the following year, out of
                  365.

          4.2.2   Moreover, in consideration of the Guarantee, the Company
                  undertakes to pay G.Q. annually, on the last business day of
                  April of each year, standby fees of two percent (2%),
                  calculated on the balance of the Loan as at March 31 preceding
                  each payment.

          4.2.3   Such standby fees shall always be payable in advance for the
                  upcoming guarantee period and shall not be refundable, in
                  whole or in part, under any circumstances.

          4.2.4   Notwithstanding the foregoing, G.Q., at its discretion, may
                  reduce the percentage of standby fees claimed from the Company
                  if there is a decrease in the percentage net loss it
                  guarantees.

     4.3  The Commitment Fee and the standby fees owed by the Company to G.Q.
          under the terms hereof shall be payable without notice or formal
          demand within the foregoing time limit, at G.Q.'s offices or at any
          other place which G.Q. may indicate to the Company in writing. G.Q.
          may claim from the Company, on any amount due, effective from
          maturity, interest calculated monthly, equal to the weekly variable
          rate prevailing at G.Q.

5.   ELECTRONIC DEBITS
     -----------------

     5.1  The Company hereby authorizes G.Q. to make, by manual or electronic
          debit from its bank account, any payment the Company must make to G.Q.
          in respect of the standby fees payable under the terms hereof and in
          respect of any amount G.Q. would have paid to the Lender in accordance
          with the Guarantee. To this effect, the Company hereby authorizes the
          bank or financial institution with which it deals to honour the debits
          made by G.Q.

     5.2  G.Q. shall send the Company a debit note in advance, containing all
          the information relating to the payments to be made by the Company.

     5.3  The Company undertakes to renew the authorization appearing above if
          it changes banks or financial institutions, as long as the Guarantee
          is in force, or as long as the Company may be indebted to G.Q. in
          respect of any payment made by G.Q. pursuant to the Guarantee and to
          inform G.Q. of this change by providing it with a cheque specimen from
          its new bank or financial institution marked "NIL" and containing all
          the necessary information.

--------------------    ---------------------------    -------------------------
Initials of G.Q.'s      Initials of the Company's
representative          representative

<PAGE>

2001-04-09                   OFFER OF LOAN GUARANTEE                 Page 4 of 9
                                  (TRANSLATION)

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     5.4  The Company accepts that payment of the standby fees owed hereunder
          shall be made by cheque if G.Q. deems this mode of payment preferable
          under the circumstances.

6.   REPAYMENT
     ---------

     6.1  The Company undertakes to repay G.Q., on demand, for any amount which
          the latter will be called upon to pay to the Lender pursuant to the
          Guarantee, both in principal and in interest, and to hold it harmless
          of any other loss, damage or expense which may result from G.Q.'s
          commitment to the Lender under the terms of the Guarantee.

7.   SECURITY
     --------

     7.1  The Company undertakes, for the duration of the Guarantee, to grant
          the Lender, to secure repayment of the Loan, the security prescribed
          in the Loan Agreement, which shall confer on the Lender in respect of
          the Loan the hypothecary rights resulting from:

          o    a movable hypothec on the universality of the movable property,
               corporeal and incorporeal, tangible and intangible, present and
               future, of Henry Birks & Sons Inc., in the amount of three
               million dollars ($3,000,000) ranking after the hypothecary rights
               already existing in favour of the lender in respect of the
               following credits granted pursuant to the Loan Agreement:

               --   GMAC credit LINE (maximum $50,000,000);

               --   GMAC term loan of seven hundred and fifty thousand dollars
                    ($750,000) (maximum balance of $262,500);

               --   GMAC term loan of four hundred thousand dollars (maximum
                    balance of $387,000);

               --   GMAC term loan of three million dollars ($3,000,000);

               --   GMAC terms loan of five million dollars ($5,000,000), G.Q.
                    file number D052950.

8.   OBLIGATIONS OF THE COMPANY
     --------------------------

     8.1  Effective from the date of acceptance of this offer, for the entire
          term of the Guarantee and until payment in full of any amount that may
          be owed to G.Q. by the Company hereunder or under the suretyship
          agreement, the Company undertakes to:

          8.1.1   furnish its audited annual financial statements, its audited
                  consolidated financial statements (where the Company must
                  prepare those according to the generally accepted accounting
                  practices of the Canadian Institute of Chartered Accountants)
                  within ninety (90) days of the end of any fiscal year and its
                  financial statements within ninety (90) days of the end of
                  each; also furnish, upon request, its semiannual financial
                  statements, the financial statements of its subsidiaries and,
                  if applicable, its consolidated financial statements or any
                  other financial statements required by G.Q. within the time
                  limit prescribed by G.Q.;

--------------------    ---------------------------    -------------------------
Initials of G.Q.'s      Initials of the Company's
representative          representative

<PAGE>

2001-04-09                   OFFER OF LOAN GUARANTEE                 Page 5 of 9
                                  (TRANSLATION)

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          8.1.2   furnish annual financial projections with the working
                  assumptions at the beginning of each fiscal year;

          8.1.3   furnish G.Q. annually with a copy of the renewal of its line
                  of credit;

          8.1.4   furnish G.Q., upon the latter's written request and within the
                  time limit provided in such request, with any and all
                  information and documents it will deem useful and relevant to
                  the application of the Guarantee and the Programme d'aide au
                  financement des enterprises (Business financing assistance
                  program);

          8.1.5   not amend its authorized and issued share capital at the date
                  hereof without G.Q.'s prior written agreement, except in
                  connection to stock options or deferred stock options granted
                  to the employees, directors or Executive officers of the
                  Company's affiliates;

          8.1.6   not liquidate, wind up or dissolve itself without G.Q.'s prior
                  written agreement;

          8.1.7   not grant loans or advances to its shareholders, directors or
                  officers, except in the normal course of the Company's
                  business, or act as guarantor for its shareholders, directors
                  or officers;

          8.1.8   deal on a business basis at arm's length in its business
                  dealings with any person;

          8.1.9   obtain G.Q.'s prior written agreement before declaring or
                  paying any dividend to a class or classes of shareholders,
                  except as provided under 8.1.19 hereof;

          8.1.10  not grant loans, advances or any other form of financial
                  assistance to affiliated companies or subsidiaires, nor make
                  investments therein, nor grant them security, nor engage in
                  transactions with them outside the normal course of its
                  operations;

          8.1.11  ensure that there is no change in the control of the Company
                  or in the ultimate control of the Company, except with G.Q.'s
                  prior consent;

                  control means the holding of Shares carrying a sufficient
                  number of voting rights to allow the election of the majority
                  of the directors of the Company. Ultimate control means the
                  holding of the said Shares by a natural person or persons
                  giving control of the Company through a legal person or legal
                  persons holding shares in each other or in the Company. In the
                  event of the death of the shareholder who has ultimate control
                  of the Company, the transmission of the Shares of the deceased
                  shareholder to his heirs shall not be deemed to constitute a
                  change in ultimate control of the Company, on condition that
                  said control remains in the hands of the deceased
                  shareholder's legal heirs;

          8.1.12  not divest more than ten percent (10%) of its assets (as per
                  the last audited financial statements), except with G.Q.'s
                  prior consent;

          8.1.13  allow G.Q's. representatives or any external auditor
                  designated by G.Q., upon prior notice to the Company, to enter
                  the Company's premises during normal business hours and, at
                  G.Q.'s expense, examine the Company's books, physical

--------------------    ---------------------------    -------------------------
Initials of G.Q.'s      Initials of the Company's
representative          representative

<PAGE>

2001-04-09                   OFFER OF LOAN GUARANTEE                 Page 6 of 9
                                  (TRANSLATION)

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                  facilities and inventory, in the manner they deem appropriate,
                  and obtain a copy of any document;

          8.1.14  allow G.Q. or its responsible Minister to disclose publicly,
                  if they deem it appropriate, the highlights of the financial
                  intervention granted to the Company, including, inter alia and
                  without limitation, the Company's name, its type of operation,
                  its location, the nature and the amount of the financial
                  intervention stipulated herein and the number of employees in
                  the Company's service;

          8.1.15  give G.Q. fifteen (15) day prior notice, if the Company wishes
                  to announce its project officially or proceed with an official
                  inauguration, so as to enable G.Q. or its responsible Minister
                  to participate;

          8.1.16  settle all expenses pertaining to the preparation, execution
                  or registration, if applicable, of the documents necessary to
                  give effect to this offer or to any amendment thereto;

          8.1.17  maintain a minimum working capital ratio of one point fifteen
                  (1.15) and a long-term debt / net equity ratio of one point
                  five (1.5), net equity also including shareholders' advances
                  and deferred subsidies; G.Q. recognizes the seasonal nature of
                  the Company and accepts that this ratio may not be provided
                  from time to time within a given fiscal year;

          8.1.18  maintain the ratios indicated in the preceding paragraph
                  regarding the guarantee previously granted by G.Q. to the
                  Company under number D052950 of its files;

          8.1.19  not pay dividends except in the following cases:

                  --    the Company generates net earnings after income taxes at
                        the end of the fiscal year; however, the amount of the
                        dividend shall not exceed one third of the net earnings
                        generated, and the working capital ratio and the term
                        debt / equity ratio, pro forma upon payment of
                        dividends, shall be maintained. In the event that the
                        Company realizes net earnings and has to pay a dividend
                        greater than the one heretofore determined, it
                        undertakes to repay the loan in an equivalent amount,
                        provided that the said ratios are maintained. Finally,
                        if in the course of a given fiscal year, the Company
                        does not exercise the privilege of paying dividends,
                        this amount shall serve as a reserve to increase the
                        redistribution in subsequent years;

                  --    the Company is subject to a takeover bid; in which case,
                        the working capital ratio and the term debt / equity
                        ratios, pro forma upon payment of the dividend, shall be
                        maintained.

          8.1.20  not redeem share capital of Henry Birks & Sons Holding Inc.
                  (this company holds 98% of the share capital of Henry Birks &
                  Sons Inc., the balance being held by management and the
                  employees (share capital and stock options));

          8.1.21  not grant loans or advances to its shareholders, except for
                  the shareholder employees, for the purchase of share capital
                  of the Company, the cumulative

--------------------    ---------------------------    -------------------------
Initials of G.Q.'s      Initials of the Company's
representative          representative

<PAGE>

2001-04-09                   OFFER OF LOAN GUARANTEE                 Page 7 of 9
                                  (TRANSLATION)

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                  amount of loans or advances to its shareholders being limited
                  to $500,000 per fiscal year;

          8.1.22  maintain the number of permanent jobs in Quebec at the current
                  minimum level of three hundred (300).

9.   EVENT OF DEFAULT
     ----------------

     9.1  Notwithstanding any other provision in this offer and even if the
          conditions are fulfilled, G.Q. reserves the right to cancel any
          portion not in force of the Guarantee or to defer its coming into
          force, at its discretion, and the Company undertakes to repay the loan
          on demand with interest, fees and incidentals, in the following cases
          which constitute cases of default:

          9.1.1   if the Company, without G.Q.'s prior written consent, moves
                  out of Quebec a substantial portion of the assets it holds in
                  Quebec, except in the normal course of the Company's business;

          9.1.2   if the Company assigns its property, is under a receivership
                  order pursuant to the Bankruptcy and Insolvency Act (R.S.C.
                  (1985) c. B-3), makes a proposal to its creditors or commits
                  an act of bankruptcy under the said Act, or if it is under a
                  winding-up order under the Winding-up Act (R.S.Q., c. L-4) or
                  any other Act to the same effect, or if it is insolvent or on
                  the verge of insolvency, or if its financial position
                  deteriorates so as to imperil its survival;

          9.1.3   if the Company avails itself of the provisions of the
                  Corporate Creditors' Arrangements Act (R.S.C. (1985) c. C-36);

          9.1.4   if the Company suspends or threatens to suspend the normal
                  operation of a substantial part of its business;

          9.1.5   if, in the opinion of G.Q. and without its consent, a material
                  change occurs in the nature of the Company's operations or in
                  the Company's level of financial or economic risk;

          9.1.6   if, at any time, the Company is part to a dispute or
                  proceedings before a court of law or a tribunal, or a
                  government commission or agency, without having disclosed it
                  to G.Q., and the said dispute has a material impact on the
                  Company's operations;

          9.1.7   in the event of fraud, misstatement or falsification of
                  documents submitted to G.Q. or the Lender by the Company or
                  its representatives;

          9.1.8   if the Company is in default of repayment to G.Q. of any sum
                  which may become due under the terms hereof;

          9.1.9   if the Company does not allocate the proceeds of the Loan to
                  the project submitted in the application for financing;

--------------------    ---------------------------    -------------------------
Initials of G.Q.'s      Initials of the Company's
representative          representative

<PAGE>

2001-04-09                   OFFER OF LOAN GUARANTEE                 Page 8 of 9
                                  (TRANSLATION)

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          9.1.10  if the Company fails to perform any of the clauses and
                  conditions of this offer, the loan contract to be entered into
                  between the Lender and the Company, any other document
                  incidental to the Loan and any amendment thereto, as
                  applicable, and in general, any agreement in respect of its
                  borrowing.

10.  NON-TRANSFERABILITY
     -------------------

     10.1 The Company may not assign or transfer the rights conferred upon it
          under the terms of this offer.

11.  REPRESENTATION
     --------------

     11.1 By its acceptance of this offer, the Company represents that all the
          information provided to G.Q. during the period of the negotiations
          which led to this offer is true and accurate.

12.  INTERPRETATION
     --------------

     12.1 This Guarantee is subject to the application of the terms and
          conditions set out in the Act respecting Investissement-Quebec and
          Garantie-Quebec and its regulations.

     12.2 Only the French version hereof shall be considered official and, in
          any event, it shall prevail over any translation which might accompany
          it.

GARANTIE QUEBEC

Per: _____________________________________  Date: 2001/04/09
                 Signature                        ----------

       Biagio Carangelo, Portfolio Manager
       -----------------------------------
        Name of authorized representative

Per: _____________________________________  Date: 2001/04/09
                 Signature                        ----------

     Jean-Charles Vincent, Regional Manager
     --------------------------------------
        Name of authorized representative

ACCEPTANCE BY THE COMPANY

Having read the terms and conditions set out in this offer, we accept this offer
of loan guarantee and attach a cheque for thirty thousand dollars ($30,000) in
payment of the Commitment Fee amounting to thirty thousand dollars ($30,000).

This cheque contains all the necessary information to allow G.Q., if applicable,
to repay any amount due under the Guarantee, by electronic debit.

--------------------    ---------------------------    -------------------------
Initials of G.Q.'s      Initials of the Company's
representative          representative

<PAGE>

2001-04-09                   OFFER OF LOAN GUARANTEE                 Page 9 of 9
                                  (TRANSLATION)

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HENRY BIRKS & SONS HOLDING INC.

Per:  ____________________________________  Date:  April 12, 2001
                 Signature                         --------------

          Marco Pasteris    John Ball
       ---------------------------------
       Name of authorized representative

HENRY BIRKS & SONS INC.

Per:  ____________________________________  Date:  April 12, 2001
                 Signature                         --------------

          Marco Pasteris    John Ball
       ---------------------------------
       Name of authorized representative

--------------------    ---------------------------    -------------------------
Initials of G.Q.'s      Initials of the Company's
representative          representative<PAGE>

                                                                   Exhibit 10.28

                              EMPLOYMENT AGREEMENT

      This Agreement shall be effective as of August 1, 2005 (The "Effective
date") by and between Michael Rabinovitch (the "Executive") and Mayor's
Jewelers, Inc., a Delaware corporation (the "Company").

      WHEREAS, the Executive declares not being prevented from working as such
in the United States and Canada;

      NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements, the parties agree as follows:

POSITION, RESPONSIBILITIES AND TERM OF AGREEMENT

      1.1 Employment and Duties. Subject to the terms and conditions of this
Agreement, the Company employs the Executive to serve on the Senior Management
Team as the Senior Vice President and Chief Financial Officer reporting to the
President & Chief Executive Officer and the Executive accepts such employment
and agrees to perform in a diligent, careful and proper manner such reasonable
responsibilities and duties commensurate with such position as may be assigned
to the Executive. The title and responsibilities and duties may be changed from
time to time so long as the Executive continues to be a member of the Senior
Management team and are consistent with his skills and experience. Executive
agrees to devote substantially all business time and efforts to and give
undivided loyalty to the Company.

      1.2 Place of work: The Executive shall be based in South Florida, provide
his services to the Company primarily in Florida and with the need to travel to
Montreal twice per month (one full week and one partial week) and any other
traveling needs required by the position.

      1.3 Effective Date. Subject to the provisions of this Agreement, this
Agreement shall start on August 1st, 2005 ("Effective Date") and shall continue
(the "Term") unless otherwise terminated as provided for in this Agreement.

2. COMPENSATION

      2.1 Base Salary. During the Term of this Agreement, the Company shall pay
the Executive an annual gross base salary of $300,000 less all applicable
deductions, taxes, and withholdings, payable in the manner dictated by the
Company's standard payroll policies. The Executive may be eligible to receive
annual base salary increases as determined at the Company's discretion based
upon the Executive's performance and the Company's performance. In no event
shall Executive's gross base salary be less than $300,000.

<PAGE>

      2.2 Incentive Compensation

"Fiscal Year" in this Agreement shall mean such period of approximately 12
months defined as such from time to time by the Company's Board of Directors.
The first Fiscal Year is from March 27, 2005, to March 25, 2006. In the event of
any change in the definition "Fiscal Year" it should not adversely affect any
bonus payment or other compensation based or calculated on the Fiscal Year.

            a) Annual Cash Bonus. For each Fiscal Year of the Company through
which the Executive remains an active employee of the Company, the Executive
will have the opportunity to earn a bonus based on achievement of a targeted
level of performance, as reflected in the annual bonus letter and based on
performance criteria set by the Company. For the Fiscal Year ending March 25,
2006, and each Fiscal Year thereafter, the target bonus is 50 % of the Base
Salary. For Fiscal Year ending March 25, 2006, the target bonus amount will be
prorated for that portion of the fiscal year worked. For Fiscal Year ending
March 25, 2006 only, the Executive shall receive an annual cash bonus equal to
the greater of: (i) a guaranteed payment of $75,000; or (ii) the target bonus
prorated for the portion of the Fiscal Year worked. The Executive will need to
be an active employee continuously from the Effective Date through June 30, 2006
in order to receive the payment. In addition, the Executive will receive a one
time signing bonus of $35,000 to be paid on September 1, 2005 and the Executive
must be an active employee continuously from the effective date through
September 1, 2005 to receive this payment. On an ongoing basis, the minimum
bonus pay out for any Fiscal Year is $0 and the maximum bonus pay out for any
Fiscal Year is the maximum allowed under the then current Management Bonus Plan.

            b) Long-term Incentive Awards. For each Fiscal Year of the Company
through which the Executive remains an active employee of the Company, the
Executive may be considered for a long-term incentive award of Mayor's units
subject to the approval of the Board of Directors and subject to any specific
conditions as may be stated by the Board of Directors and-or the Long-Term
Incentive Plan. This award, if granted, will vest over a multi-year period as
may be approved by the Board of Directors or stated in the Long-Term Incentive
Plan. For the Fiscal Year ending March 25, 2006 the Executive will be granted
the equivalent of 250,000 Mayors units or the equivalent number of Birks units
which approximate 21,739 units (whether stock options, SAR's, phantom stock,
etc,) with a 3 year vesting period. The grant and pricing of these units will be
subject to the earlier of the following two events: approval by the Board of
Directors or as soon as possible once the financial reorganization of Birks and
Mayors is completed and the Company is authorized to grant Long Term Equity
Incentives.

      2.3 Participation in Benefit Plans and Associate Discount Policy. If
acceptable by the Company's group insurers, the Company will provide the
Executive with the group insurance coverages (as of September 1, 2005),
currently including life, dental and medical insurance benefits, the cost of
which shall be borne by the Company according to the prevailing policies
applicable to other Senior Management members. The Executive will also be
provided an additional annual benefit payment in the amount of $15,000, paid on
a quarterly basis. In addition, the Executive will be entitled to

<PAGE>

participate in the Company's Associate Discount Policy. The Company may, at its
discretion, modify said policies from time to time. Nothing paid to the
Executive under any plan, policies or arrangement presently in effect or made
available in the future shall be deemed to be in lieu of other compensation to
the Executive hereunder as described in this Section 3.

      2.4 Vacation Days. The Executive shall be entitled to twenty days of
vacation for each Fiscal Year consistent with the Company's vacation policy for
Senior Management officers. The vacation days are earned for a given Fiscal Year
during that same Fiscal Year; as a result, for any portion of a Fiscal Year
worked, the vacation shall be prorated on the basis of the number of days worked
during the Fiscal Year. Unused vacation days may not be carried over from year
to year.

      2.5 Expenses. During the term of employment hereunder, the Executive shall
be entitled, without duplication, to receive reimbursement for all reasonable
and approved business expenses incurred by the Executive in accordance with the
policies and procedures established by the Company. In addition but without
duplication, the Executive shall receive the following gross all-inclusive
allowances:

            a) Car Allowance: The Executive shall be entitled to a car allowance
all-inclusive lump sum amount equal to $800 per month in accordance with the car
allowance policy applicable to other members of Senior Management as may be
amended from time to time. Any other automobile costs or expenses including,
without limitation, maintenance, insurance, repairs, lease or financing costs,
and mileage, are the sole responsibility of the Executive.

            b) One Time Reimbursement of Benefits: The Executive shall be
entitled to a one-time reimbursement of a maximum of $1,000 after submission of
receipts for the coverage of benefits during the waiting period.

            c) One Time Legal Allowance: The Executive will be provided a one
time allowance of up to $1,000 for the legal costs related to the review of this
employment agreement.

It is understood that to the extent these provisions generate taxable benefit
for income tax purposes, these taxes will be the sole responsibility of the
Executive.

3. TERMINATION

      3.1 Certain Definitions. For purposes of this Agreement, the following
terms have the meanings indicated:

            a) "Cause" shall mean: (i) the willful and continued failure by the
Executive to substantially perform the Executive's duties for the Company (other
than any such failure resulting from the Executive's incapacity due to physical
or mental illness, or any such actual or anticipated failure after the Executive
announces his intention to resign for Good Reason), (ii) the willful engaging by
the Executive in misconduct which is financially injurious to the Company, or
(iii) the Executive's conviction or a pleading of guilty or nolo contendre with
respect to the commission of a

<PAGE>

felony or a crime involving bad faith or dishonesty; (iv) the Executive's
insubordination; (v) any breach by the Executive of any material term of this
Agreement or any other written agreement between the Executive and the Company;
or (vi) the Executive's material violation of any of the Company's policies. No
act, or failure to act, on the Executive's part shall be considered "willful"
unless done, or omitted to be done, by the Executive not in good faith and
without reasonable belief that the action or omission was in the best interest
of the Company.

            b) "Code" shall mean the Internal Revenue Code of 1986, as amended.

            c) "Disability" shall mean the Executive's inability to perform the
Executive's duties by reason of mental or physical disability for at least
ninety (90) days in any three-hundred sixty-five (365) day period. In the event
of a dispute as to whether the Executive is disabled within the meaning hereof,
either party may from time to time request a medical examination of the
Executive by a doctor appointed by the Chief of Staff of a hospital selected by
mutual agreement of the parties, or as the parties may otherwise agree, and the
written medical opinion of such doctor shall be conclusive and binding upon the
parties as to whether the Executive has become disabled and the date when such
disability arose. The cost of any such medical examination shall be borne by the
Company.

            d) "Good Reason" shall mean (i) the Executive ceases to be a member
of the Senior Management of the Company, or (ii) the Company materially breaches
any material provision of this Agreement including, but not limited to the
Company requiring the relocation of the Executive outside South Florida. In the
event of a resignation for Good Reason, Executive must provide the Company with
a written "Notice of Resignation for Good Reason." The "Notice of Resignation
for Good Reason" shall include the specific section of this Agreement which was
relied upon and the reason that the Company's act or failure to act has given
rise to the Executive's resignation for Good Reason.

      3.2 Termination Without Cause, Resignation with Good Reason or a Required
Relocation outside South Florida.

            a) Executive may terminate this Agreement by giving the Company
written notice of such termination in accordance with Section 6.2 at least 90
days prior to the termination date, unless a shorter period is agreed upon
between the parties.

            b) In the event at any time of (i) the termination of the employment
of the Executive without Cause (for any reason other than by Death or
Disability) or (ii) the resignation of the Executive for an event constituting
Good Reason, or (iii) the required relocation of the Executive outside South
Florida, the Company shall pay or provide to the Executive only the following:

<PAGE>

                  (i) Any earned and accrued but unpaid installment of base
salary through the date of the Executive's resignation or termination at the
rate in effect immediately prior to such resignation or termination (or the rate
in effect immediately prior to the occurrence of an event that constitutes Good
Reason, whichever is greater) and all other unpaid amounts to which the
Executive is entitled as of such date under any compensation plan or program of
the Company (including payment for any vacation time not taken during the year
in which termination occurs and any reimbursements not yet paid but due for
business expenses previously incurred), such payments to be made in a lump sum
within 15 days following the date of resignation or termination; and

                  (ii) The amount the Executive would have been entitled to
pursuant to Section 2.2(a), had Executive remained employed through the end of
the Fiscal Year in which termination occurs, multiplied by a fraction, the
numerator of which is the number of days from the beginning of such Fiscal Year
to the date of termination, and the denominator of which is 365, such amount to
be paid no later than the time annual bonuses are paid to other executives of
the Company; and

                  (iii) In lieu of any further salary payments to the Executive
for periods subsequent to his date of resignation or termination, the Executive
will receive six (6) months of salary continuation at the same rate of base
salary in effect immediately prior to the Executive's resignation or termination
(or the base salary in effect immediately prior to the occurrence of an event
that constitutes Good Reason, whichever is greater). The Company will make the
salary continuation payments, less applicable taxes and other withholding, on
the Company's regular payroll dates. In the event the Company terminates the
Executive without cause, the Company may at its sole discretion, require the
Executive to continue providing services for a three (3) month working notice
period while said salary continuation payments are being made and such
continuation of services by the Executive shall not serve to extend the
six-month salary continuation period; and

                  (iv) The Company shall maintain in full force and effect for
the period described in Section 3.2(b)(iii), following the date of the
Executive's resignation or termination, health and dental programs (not life or
disability programs) in which the Executive was entitled to participate either
immediately prior to the Executive's resignation or termination or immediately
prior to the occurrence of an event that constitutes Good Reason, provided that
the Executive's continued participation is possible under the general terms and
provisions of such plans and programs. If applicable, to the extent Cobra is
available, the Company's obligations are satisfied by paying the Executive's
monthly premiums for the period described in Section 3.2(b)(iii) under Cobra,
and then the Executive may continue the Cobra coverage at the Executive's
expense;

                  (v) As a condition to his entitlement to receive termination
payments under subsections (ii) - (iv) of this Section, the Executive shall have
executed and delivered to the Company a release substantially in the form
attached hereto as Exhibit A.

<PAGE>

            c) Notwithstanding the foregoing, in the event the aggregate amount
of all payments that the Executive would receive pursuant to Section 3.2(b) plus
payment to be made to the Executive outside this Agreement would result in an
excess "parachute payment" (as defined in Section 280G(b)(2) of the Code) but
for this Section 3.2(b), as determined in good faith by the Company, the
aggregate amount of the payments required to be paid to the Executive pursuant
to this Section 3.2(b) shall be reduced to the largest amount that would result
in no portion of any payment to the Executive being subject to the excise tax
imposed by Section 4999 of the Code.

For greater clarity, except as set forth above, no other payment whatsoever
shall be due by the Company to the Executive.

      3.3 Termination for Cause, Disability, Death or Resignation without Good
Reason. In the event of the Executive's termination of employment for Cause,
Death or Disability or his resignation without Good Reason, only the amounts set
forth in clause (i) of Section 3.2(b) shall be payable to the Executive,
provided that in the event of Death and Disability, the amount set forth in
clause (ii) of Section 3.2(b) shall be payable as well.

      3.4 Withholding. The Company shall have the right to deduct from any
amounts payable under this Agreement an amount necessary to satisfy its
obligation, under applicable laws, to withhold income or other taxes of the
Executive attributable to payments made hereunder.

4. NON-COMPETITION/CONFIDENTIALITY

      4.1 The Executive agrees that during the Executive's employment with the
Company, and for a six-month period thereafter, the Executive will not, directly
or indirectly, do or suffer any of the following:

            a) Own, manage, control or participate in the ownership, management
or control of, or be employed or engaged by or otherwise affiliated or
associated (collectively, "Employed") as a consultant, independent contractor or
otherwise with, any other corporation, partnership, proprietorship, firm,
association, or other business entity, or otherwise engage in any business,
which is engaged in any manner in, or otherwise competes with, the business of
the Company or any of its affiliates (as conducted on the date the Executive
ceases to be employed by the Company in any capacity, including as a consultant)
(a "Prohibited Business") in the United States of America or any of the foreign
countries in which the Company or any of its affiliates is doing business (a
"Competing Business") for so long as this Section 4.1(a) shall remain in effect,
nor solicit any person or business that was at the time of the Executive's
termination of employment, or within one year prior thereto, a customer or
supplier of the Company or any of its affiliates; provided, however, that,
notwithstanding the foregoing, the Executive shall not be deemed to be Employed
by a Competing Business if the Board or a committee of the Board determines that
the Executive has established by clear and

<PAGE>

convincing evidence all of the following: (A) such entity (including its
affiliates in aggregate) does not derive Material Revenues (as defined below)
from the aggregate of all Prohibited Businesses, (B) such entity (including its
affiliates in aggregate) is not a Competitor (as defined below) of the Company
and its affiliates and (C) Executive has no direct responsibility for or
otherwise with respect to any Prohibited Business; for purposes of this clause
(a), "Material Revenues" shall mean that 5% or more of the revenues of the
entity (including its affiliates in aggregate) are derived from the aggregate of
all Prohibited Businesses; an entity shall be deemed a "Competitor" of the
Company and its affiliates if the combined gross receipts of the entity
(including its affiliates in aggregate) from any Prohibited Business is more
than 25% of the gross receipts of the Company and its affiliates in such
Prohibited Business; and an "affiliate" of an entity is any entity controlled
by, controlling or under common control with the entity;

            b) Employ, assist in employing, or otherwise engage in business with
any present executive, officer, employee or agent of the Company or its
affiliates;

            c) Induce any person who is an executive, officer, employee or agent
of the Company, or any member of the Company or its affiliates, to terminate
their relationship with the Company or any of its affiliates; and

            d) Disclose, divulge, discuss, copy or otherwise use or suffer to be
used in any manner, in competition with, or contrary to the interests of, the
Company, or any member of the Company or its affiliates, the customer lists,
manufacturing and marketing methods, product research or engineering data,
vendors, contractors, financial information, business plans and methods or other
confidential business information or trade secrets of the Company, or any member
of the Company or its affiliates, it being acknowledged by the Executive that
all such information regarding the business of the Company or its affiliates
compiled or obtained by, or furnished to, the Executive while the Executive
shall have been employed by or associated with the Company is confidential
information and the Company's exclusive property (it being understood, however,
that the information publicly disclosed by the Company shall not be subject to
this Section 4.1(d), provided that such information may not be used in
connection with any of the activities prohibited under clauses (a), (b) and (c)
of this Section 4.1 for so long as such clauses remain in effect).

      4.2 Upon the termination of the Executive's employment with the Company,
or at any time upon the request of the Company, the Executive (or the
Executive's heirs or personal representatives) shall deliver to the Company (a)
all documents and materials (including, without limitation, computer files)
containing confidential information relating to the business and affairs of the
Company and its direct and indirect subsidiaries, and (b) all documents,
materials and other property (including, without limitation, computer files)
belonging to the Company or its direct or indirect subsidiaries, which in either
case are in the possession or under the control of the Executive (or Executive's
heirs or personal representatives).

      4.3 The Executive expressly agrees and understands that the remedy at law
for any breach by the Executive of any of the provisions of this Section 4 will
be inadequate

<PAGE>

and that damages flowing from such breach are not readily susceptible to being
measured in monetary terms. Accordingly, it is acknowledged that upon adequate
proof of the Executive's violation of any legally enforceable provision of this
Section 4, the Company shall be entitled to immediate injunctive relief and may
obtain a temporary order restraining any threatened or further breach. Nothing
in this Section 4 shall be deemed to limit the Company's remedies at law or in
equity for any breach by the Executive of any of the provisions of this Section
4, which may be pursued or availed of by the Company.

      4.4 In the event the Executive shall violate any legally enforceable
provision of this Section 4 as to which there is a specific time period during
which he/she is prohibited form taking certain actions or from engaging in
certain activities, as set forth in such provision, then, such violation shall
toll the running of such time period from the date of such violation until such
violation shall cease; provided, however, the Company shall seek appropriate
remedies in a reasonably prompt manner after discovery of a violation by the
Executive.

      4.5 The Executive has carefully considered the nature and extent of the
restrictions upon him/her and the rights and remedies conferred upon the Company
under this Section 4, and hereby acknowledges and agrees that the same are
reasonable in time and territory, are designed to eliminate competition which
otherwise would be unfair to the Company, are designed to not stifle the
inherent skill and experience of the Executive, would not operate as a bar to
the Executive's sole means of support, are fully required to protect the
legitimate interests of the Company and do not confer a benefit upon the Company
disproportionate to the detriment to the Executive.

      4.6 If any court or arbitrators determine that any of the covenants
contained in this Section 4 (the "Restrictive Covenants"), or any part thereof,
is unenforceable because of the duration or geographical scope of such
provision, the duration or scope of such provision, as the case may be, shall be
reduced so that such provision becomes enforceable and, in its reduced form,
such provision shall then be enforceable and shall be enforced.

      4.7 The Company and the Executive intend to and hereby confer jurisdiction
to enforce the Restrictive Covenants upon the courts of South Florida. If the
courts of any one or more or such jurisdictions hold the Restrictive Covenants
wholly unenforceable by reason of breach of scope or otherwise, it is the
intention of the Company and the Executive that such determination not bar or in
any way affect the Company's right to the relief provided above in the courts of
any other jurisdiction within the geographical scope of such Restrictive
Covenants as to breaches of such Restrictive Covenants in such other respective
jurisdiction, such Restrictive Covenants as they relate to each jurisdiction
being, of this purpose, severable, diverse and independent covenants, subject,
where appropriate, to the doctrine of res judicata.

      The term "affiliates" in this Section 4 when used in referencing
affiliates of the Company includes, but is not limited to, Henry Birks & Sons,
Inc.

<PAGE>

5. ASSIGNMENT. The rights and obligations of the parties under this Agreement
shall not be assignable by either the Company or the Executive, provided that
this Agreement is assignable by the Company to any affiliate of the Company, to
any successor in interest to the business of any of the Company, or to a
purchaser of all or substantially all of the assets of any of the Company
including without limitation by way of merger or stock purchase.

6. MISCELLANEOUS.

      6.1 Governing Law. This Agreement shall be construed in accordance with
and governed for all purposes by the laws of the State of Florida.

      6.2 Notices. Any notice, request, or instruction to be given hereunder
shall be in writing and shall be deemed given when personally delivered or three
days after being sent by United States certified mail, postage prepaid, with
return receipt requested to, the parties at their respective addresses set forth
below:

                  a)       To the Company:

                           Mayor's Jewelers, Inc.
                           14051 Northwest, 14th Street
                           Sunrise, Florida  33323

                           Attention: Senior Vice President & CAO

                  b)       To the Executive:

      6.3 Severability. If any paragraph, subparagraph or provision hereof is
found for any reason whatsoever to be invalid or inoperative, that paragraph,
subparagraph or provision shall be deemed severable and shall not affect the
force and validity of any other provision of this Agreement. If any covenant
herein is determined by a court to be overly broad thereby making the covenant
unenforceable, the parties agree and it is their desire that such court shall
substitute a reasonable judicially enforceable limitation in place of the
offensive part of the covenant and that as so modified the covenant shall be as
fully enforceable as if set forth herein by the parties themselves in the
modified form. The covenants of the Executive in this Agreement shall each be
construed as an agreement independent of any other provision in this Agreement,
and the existence of any claim or cause of action of the Executive against the
Company, whether predicated on this Agreement or otherwise, shall not constitute
a defense to the enforcement by the Company of the covenants in this Agreement.

      6.4 Entire Agreement, Amendment and Waiver. This Agreement constitutes the
entire agreement and supersedes all prior agreements of the parties hereto
relating to the subject matter hereof, and there are no oral terms or
representations made by either

<PAGE>

party other than those herein. This Agreement may not be amended, supplemented
or waived except by a writing signed by the party against which such amendment
or waiver is to be enforced. The waiver by any party of a breach of any
provision of this Agreement shall not operate to, or be construed as a waiver
of, any other breach of that provision nor as a waiver of any breach of another
provision.

      6.5 Arbitration of disputes. Any controversy or claim arising out of or
relating to this Agreement, or breach thereof (other than those arising under
Section 4, to the extent necessary for the Company to avail itself of the rights
and remedies provided under Section 4), or any controversy or claim arising out
of the Executive's employment with the Company, shall be submitted to
arbitration in Broward County, Florida in accordance with the Rules of the
American Arbitration Association, and judgment upon the award may be entered in
any court having jurisdiction thereof, provided, however, that the parties agree
that (i) the panel of arbitrators shall be prohibited from disregarding, adding
to or modifying the terms of this Agreement; (ii) the panel of arbitrators shall
be required to follow established principles of substantive law and the law
governing burdens of proof; (iii) only legally protected rights may be enforced
in arbitration; (iv) the chairperson of the arbitration panel shall be an
attorney licensed to practice law in Florida who has experience in similar
matters; and (v) any demand for arbitration made by either party must be filed
and served, if at all, within 365 days of the occurrence of the act or omission
complained of, except where the applicable statute of limitations exceeds this
time period in which case the period provided under the statute of limitations
will apply. The award rendered in any arbitration proceeding held under this
Section shall be final and binding, and judgment upon the award may be entered
in any court having jurisdiction thereof, provided that the judgment conforms to
established principles of law and is supported by substantial record evidence.

      6.6 Enforcement.

            a) This Agreement shall inure to the benefit of and be enforceable
by the Executive's personal and legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If the
Executive should die while any amounts are still payable to the Executive
hereunder, all such amounts shall be paid in accordance with the terms of this
Agreement to the Executive's estate or beneficiary

            b) If either party is required to institute litigation or
arbitration to enforce their rights under this Agreement, then the prevailing
party, as determined by either a court of competent juridiction or arbitration,
shall be entitled to recover reasonable attorney's fees and costs.

      6.7 Survival of Rights and Obligations. The provisions of sections 3.2,
3.3 and 4 (but subject to the time limitations in Section 4.1) shall survive the
termination or expiration of this Agreement. Section 4.1(a) shall not survive
the termination or expiration of this Agreement if the Company terminates the
Executive without Cause, or if the Executive resigns with Good Reasons.

However, nothing in this subsection prohibits the Company from seeking relief
under Section 4 of this Agreement, including circumstances where the Executive
purports to

<PAGE>

resign with good reason.

      6.8 Counterparts. This Agreement may be executed in two counterparts, each
of which is an original but which shall together constitute one and the same
instrument.

      6.9 Written Resignation. In the event this Agreement is terminated for any
reason (except by death), the Executive agrees that if at the time Executive is
a director or officer of the Company or any of its direct or indirect
subsidiaries, Executive will immediately deliver a written resignation as such
director or officer, such resignation to become effective immediately.

      6.10 Executive's Representations. The Executive represents and warrants to
the Company that (i) the Executive is able to perform fully the Executive's
duties and responsibilities contemplated by this Agreement and (ii) there are no
restrictions, covenants, agreements or limitations of any kind on his right or
ability to enter into and fully perform the terms of this Agreement.

      6.11 For the avoidance of doubt, any references to monies or dollars set
forth in this Agreement shall be in United States Dollars.

<PAGE>

                                   EXECUTION

Upon execution below by both parties, this Agreement will enter into full force
and effect as of August 1, 2005.

                                            MAYOR'S JEWELERS, INC.

                                            By: /s/ Thomas A. Andruskevich
                                                --------------------------------
                                                Chairman, President and Chief
                                                Executive Officer

                                            EXECUTIVE

                                            By: /s/ Michael Rabinovitch
                                                --------------------------------

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