Company: VUZI
Filing Date: 2025-10-08
Form Type: S-3
Source: 0001104659-25-097917
Chunk: 5

Company: Vuzix Corp
Filing Date: 2025-10-08
Form: S-3
Chunk 5
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 Preferred Stock, or the Series B Preferred Stock.

In
connection with the Purchase Agreement, on September 3, 2024, the Company and Quanta entered into a registration rights agreement,
on October 28, 2024, we entered into an amendment to the registration rights agreement, and on July 20, 2025, the Company and
Quanta agreed to further modify the terms of the registration rights agreement. Pursuant to the registration rights agreement, as amended,
we agreed to use commercially reasonable efforts to file a registration statement with the SEC for the resale of the shares of common
stock issued in the first closing under the Purchase Agreement within 45 days from the first closing under the Purchase Agreement, and
to have such registration statement declared effective within 60 days from the first closing (or 90 days if the registration statement
was reviewed by the SEC). We also agreed to file a registration statement with respect to the shares issuable upon conversion of the
shares of Series B Preferred Stock issued in the second closing and third closing within 45 days from the third closing.

In connection with the Purchase Agreement, on September 3, 2024, we filed a certificate of designation of Series B Preferred Stock with the Secretary of State of Delaware. Pursuant to the certificate of designation, we designated 800,000 shares as Series B Preferred Stock. The Series B Preferred Stock entitles the holders to cumulative dividends at the annual rate of 1.5% of the original issuance price, payable quarterly. Upon any liquidation of the Company, holders of Series B Preferred Stock will be entitled to receive the original issuance price, plus any accrued dividends, prior to any payments to holders of common stock. Each share of Series B Preferred Stock is convertible, at the option of the holder, into ten shares of common stock, subject to adjustment for stock splits, stock dividends, and similar transactions. If a Triggering Event (as defined in the certificate of designation) occurs, holders may, at their option, require the Company to redeem the Series B Preferred Stock at a redemption price equal to the original issuance price plus any accrued dividends. The Company may, at its option at any time, redeem the Series B Preferred Stock. The Series B Preferred Stock does not entitle the holders to voting rights, except with respect to certain actions which will require the consent of the holders of 66 2/3% of the outstanding shares of Series B Preferred Stock, or as required by law.

The
first closing under the Purchase Agreement