Document:

Amendment To

 

DEBT CONVERSION/EXCHANGE AGREEMENT

 

This Agreement (the “Amendment Agreement”) is an
amendment to the Conversion/Exchange Agreement dated the 29th day of March, 2013 (“Conversion/Exchange Agreement”),
by and between LC CAPITAL MASTER FUND LTD. ("LC Capital"), and VUZIX CORPORATION, a Delaware corporation ("Borrower").

 

In consideration of the mutual covenants
and agreements contained herein and in the Conversion/Exchange Agreement, the parties agree to amend the Conversion/Exchange Agreement
effective immediately as follows:

 

 

		1.	Paragraph 1 (a) (1) of the Conversion/Exchange Agreement currently provides that:

 

(1) LC Capital agrees, subject to the conditions set
forth herein, to convert the principal and accrued but unpaid interest on the Convertible Note (“Debt Conversion”)
into shares of Common Stock (such shares to be owned by LC Capital, the "Conversion Shares") either, as LC Capital may
decide in its sole discretion, (i) pursuant to the terms of the Convertible Note or (ii) at a conversion price equal to the per
share offering price of the Company’s shares in its proposed secondary offering with Aegis Capital, as further described
in Section 4(a)(v),.

 

The Conversion/Exchange Agreement Paragraph 1 (b)
(1) is hereby amended to state:

 

(1) LC Capital agrees, subject to the conditions set
forth herein, to convert the principal and accrued but unpaid interest on the Convertible Note (“Debt Conversion”)
into shares of Common Stock (“Conversion Shares”) and Warrants to purchase shares of Common Stock,
which Warrants (the “Conversion Warrants”) will have the same terms as the warrants offered by the Company under the
Company’s Registration Statement on Form S-1 (File No. 333-185661), as amended (the “Existing Registration Statement”),
and will be issued in the same ratio to the Conversion Shares as the ratio of the warrants to the shares of common stock issued
to purchasers under the Existing Registration Statement either, as LC Capital may decide in its sole discretion, (i) pursuant
to the terms of the Convertible Note or (ii) at a conversion price equal to the offering price of the Company’s shares
and warrants under the Existing Registration Statement, as further described in Section 4(a)(v),.

 

 

		2.	Paragraph 2 (f) of the Conversion/Exchange Agreement currently provides that:

  

(f) The Borrower has, or will have as of prior to
the Closing Date registered its Common Stock to trade on NASDAQ Capital Markets and, any consents or approvals necessary to consummate
the transactions contemplated hereby (including from any government, self-regulatory organization, exchanges, contractual counterparty
or security holder of the Borrower) have been obtained (or will be obtained prior to the Closing).

 

The Conversion/Exchange Agreement Paragraph 2 (f)
is hereby amended to state:

 

(f) The Borrower has, or will have as of prior to
the Closing Date registered its Common Stock to trade on NASDAQ Capital Markets or the OTC Bulletin Board (OTCBB)
and, any consents or approvals necessary to consummate the transactions contemplated hereby (including from any government, self-regulatory
organization, exchanges, contractual counterparty or security holder of the Borrower) have been obtained (or will be obtained prior
to the Closing).

 

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		3.	Paragraph 4 (a) (v) of the Conversion/Exchange Agreement currently provides that:

 

(v) The Borrower shall have obtained the necessary
approvals for the listing of the Common Stock on the NASDAQ Capital Market and shall have consummated a public offering of its
securities as described in its Registration Statement on Form S-1, filed with the SEC on December 21, 2012.

 

The Conversion/Exchange Agreement Paragraph 4 (a)
(v) is hereby amended to state:

 

(v) The Borrower shall have consummated a public offering
of its securities as described in the Existing Registration Statement.

 

  

		4.	Paragraph 4 (b) (iii) of the Conversion/Exchange Agreement currently provides that:

 

(iii) The Borrower shall have obtained the necessary
approvals for the listing of the Common Stock on the NASDAQ Capital Market and shall have consummated a public offering of its
securities as described in its Registration Statement on Form S-1, filed with the SEC on December 21, 2012.

 

The Conversion/Exchange Agreement Paragraph 4 (b)
(iii) is hereby amended to state:

 

(iii) The Borrower shall have consummated a public
offering of not less than $5,000,000 of its securities as described in the Existing Registration Statement.

 

 

		5.	The first sentence of Paragraph 5 (a)(i) of the Conversion/Exchange Agreement currently provides that:

  

promptly and in any event not later than forty-five
(45) days following the Closing Date (the “Filing Deadline”), the Borrower shall prepare and file with the U.S. Securities
and Exchange Commission (the “SEC”), a Registration Statement on Form S-1 (or such other form as the Borrower is then
eligible to use) registering the resale from time to time by LC Capital of the Conversion Shares and the Exchange Shares pursuant
to a plan of distribution reasonably acceptable to LC Capital (the “Registration Statement”).

 

The first sentence of Paragraph 5 (a)(i) of the Conversion/Exchange
Agreement is hereby amended to state:

 

promptly and in any event not later than forty-five
(45) days following the Closing Date (the “Filing Deadline”), the Borrower shall prepare and file with the U.S. Securities
and Exchange Commission (the “SEC”), a Registration Statement on Form S-1 (or such other form as the Borrower is then
eligible to use) registering the resale from time to time by LC Capital of the Conversion Shares, the Exchange Shares and the
shares of common stock issuable upon exercise of the Exchange Warrants pursuant to a plan of distribution reasonably acceptable
to LC Capital (the “Registration Statement”).

 

    	Page 2 of 3

    	 

    

 

		6.	Paragraph 5 (a) (vii) of the Conversion/Exchange Agreement currently provides that:

 

(vii) The Borrower shall take all commercially reasonably
action to cause the Conversion Shares and the Exchange Shares to be listed on the NASDAQ Capital Market within 15 days of their
issuance;

 

The Conversion/Exchange Agreement Paragraph 5 (a)
(vii) is hereby deleted.

 

  

		7.	All other provisions and terms of the Conversion/Exchange Agreement and any amendments thereto shall remain the in effect in
accordance with their original terms.

  

 

EXECUTED on this 7th day of
June 2013.

 

 

	Borrower: Vuzix Corporation	 	LC Capital: LC CAPITAL MASTER FUND LTD.	 
			 			 
			 			 
	 By:	/s/ Paul Travers	 	By:	/s/ Richard F. Conway	 
		 	 			 
	 Name:	Paul Travers	 	Name:	Richard F. Conway	 
			 			 
	Title:	President & CEO	 	Title:	Director	 

 

    	Page 3 of 3Amendment To 

 

DEFERRED COMPENSATION DEFERRAL AND CONVERSION
OPTION AGREEMENT

 

This Agreement (the “Amendment Agreement”) is an
amendment to the DEFERRED COMPENSATION DEFERRAL AND CONVERSION OPTION AGREEMENT dated the 27th day of March, 2013 (“Conversion
Option Agreement”), by and between GRANT RUSSELL ("Executive"), and VUZIX CORPORATION, a Delaware corporation ("Company").

 

In consideration of the mutual covenants
and agreements contained herein and in the Conversion Option Agreement, the parties agree to amend the Conversion Option Agreement
effective immediately as follows:

 

		1.	Paragraph 2 (a) of the Conversion Option Agreement currently provides that:

 

 

2 (a) Executive may, subject to the conditions set
forth herein, convert, in whole or in part, any unpaid portion of the Deferred Compensation into shares of Common Stock (such shares
to be issued to the Executive, the "Conversion Shares") at a conversion price equal to the per share offering price of
the Company’s shares in its proposed secondary offering underwritten by Aegis Capital, as further described in Section 5
(b), and subject to the approval of the TSX Venture Exchange (“TSXV”).

 

The Conversion Option Agreement Paragraph 2 (a)

 

2 (a) Executive will may,
subject to the conditions set forth herein, convert the in whole the or in part, any
unpaid portion of the Deferred Compensation into shares of Common Stock (such shares to be issued to the Executive, the "Conversion
Shares") at a conversion price equal to the per share offering price of the Company’s shares in its proposed secondary
offering underwritten by Aegis Capital and Warrants to purchase shares of Common Stock, which Warrants (the “Conversion
Warrants”) will have the same terms as the warrants offered by the Company under the Company’s Registration Statement
on Form S-1 (File No. 333-185661), as amended (the “Existing Registration Statement”), and will be issued
in the same ratio to the Conversion Shares as the ratio of the warrants to the shares of common stock issued to purchasers under
the Existing Registration Statement, as further described in Section 4(a)(v),and subject to the approval
of the TSX Venture Exchange (“TSXV”).

 

		2.	Paragraph 2 (c) of the Conversion Option Agreement currently provides that:

 

2 (c) Subject to the terms and conditions set forth
herein, this Agreement will become effective on the day that the Company shall have obtained the necessary approvals for the listing
of its Common Stock on the NASDAQ Capital Market and shall have consummated a public offering of the securities as described in
its Registration Statement on Form S-1, filed with the SEC on December 21, 2012.

 

The Conversion Option Agreement Paragraph 2 (c) is
hereby amended to state:

 

2 (c) Subject to the terms and conditions set forth
herein, this Agreement will become effective on the day that the Company shall have obtained the necessary approvals for
the listing of its Common Stock on the NASDAQ Capital Market and shall have consummated a public offering of the securities
as described in its Registration Statement on Form S-1 (File No. 333-185661), as amended filed with the SEC
on December 21, 2012.

 

    	 

    	 

    

 

		3.	Paragraph 5 (a) (v) of the Conversion Option Agreement currently provides that:

 

5 (a) (v) Before June 30, 2013, the Company shall
have obtained the necessary approvals for the listing of its Common Stock on the NASDAQ Capital Market and shall have consummated
a public offering of its securities as described in its Registration Statement on Form S-1, filed with the SEC on December 21,
2012.

 

The Conversion Agreement Paragraph
5 (a) (v) is hereby amended to state:

 

5 (a) (v) Before June 30, 2013, the Company shall
have obtained the necessary approvals for the listing of its Common Stock on the NASDAQ Capital Market and shall have
consummated a public offering of its securities as described in its Registration Statement on Form S-1 (File No. 333-185661),
as amended filed with the SEC on December 21, 2012.

 

		4.	Paragraph 5 (b) (iii) of the Conversion Option Agreement currently provides that:

 

5 (b) (iii) Before June 30, 2013, the Company shall
have obtained the necessary approvals for the listing of its Common Stock on the NASDAQ Capital Market and shall have consummated
a public offering of its securities as described in its Registration Statement on Form S-1, filed with the SEC on December 21,
2012.

 

The Conversion Option Agreement Paragraph 5 (b) (iii)
is hereby amended to state:

 

5 (b) (iii) Before June 30, 2013, the Company shall
have obtained the necessary approvals for the listing of its Common Stock on the NASDAQ Capital Market and shall have
consummated a public offering of its securities as described in its Registration Statement on Form S-1 (File No. 333-185661),
as amended filed with the SEC on December 21, 2012.

 

		5.	Paragraph 6 (c) of the Conversion Option Agreement currently provides that:

 

6 (c) The Company shall take all commercially reasonably
action to cause the Conversion Shares to be listed on the NASDAQ Capital Market or the TSXV within 15 days of their issuance;

 

The Conversion Option Agreement Paragraph 6 (c) is
hereby amended to state:

 

6 (c) The Company shall take all commercially reasonably
action to cause the Conversion Shares and Conversion Warrants to be listed on the NASDAQ Capital Market,
or the TSXV within 15 days of their issuance;

 

		6.	All other references to “Conversion Shares” in the Conversion Option Agreement including Sections 3(a), 4 (d),
4 (e), 5 (a) (iv), 6 (a), 6(b), 6 (d), and 6 (v) and any amendments are to now state “Conversion Shares and Conversion
Warrants”, and shall otherwise remain the in effect in accordance with their original terms but will now include
the Conversion Warrants..

 

    	 

    	 

    

 

		7.	All other provisions and terms of the Conversion Option Agreement and any amendments thereto shall remain the in effect in
accordance with their original terms.

 

EXECUTED on this 7th day of
June 2013.

  

	Company: Vuzix Corporation	Executive: Grant Russell	 	 
	 	 	 	 
	 	 	 	 
	By: /s/ Paul Travers	By: /s/ Grant Russell	 	 
	                               	 	 	 
	Name:  Paul Travers    	Name:  Grant Russell    	 	 
	Title:  President & CEO	Title: EVP & CFO

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