Document:

SHARED SERVICES AGREEMENT

 

This SHARED SERVICES
AGREEMENT (this “Agreement”) is entered into and made effective as of June 15, 2012 (the “Effective
Date”), by and between TDG ACQUISITION COMPANY, LLC, a Delaware limited liability company (“Buyer”),
and VUZIX CORPORATION, a Delaware corporation (“Seller”).

 

WITNESSETH :

 

WHEREAS, Buyer and
Seller have entered into a certain Asset Purchase Agreement dated June 15, 2012 (the “Purchase Agreement”) pursuant
to which Buyer is purchasing certain business assets from Seller as more fully set forth in the Purchase Agreement;

 

WHEREAS, also pursuant
to the Purchase Agreement, Buyer and Seller have agreed to enter into this Agreement pursuant to which Seller will provide certain
transition, administrative and support services to Buyer, and Buyer shall provide certain transition services to Seller, all on
the terms set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, Buyer and Seller, intending to be legally bound, do hereby mutually covenant and
agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1          Definitions.
Capitalized terms used herein (including the Appendix hereto) and not otherwise defined herein shall have the meanings assigned
to such terms in the Purchase Agreement.

 

1.2          Usage.
For purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise requires: (i) words
using the singular or plural number also include the plural or singular number, respectively, and the use of any gender herein
shall be deemed to include the other genders; (ii) references herein to “Articles,” “Sections,” “subsections”
and other subdivisions, and to the Appendix and other attachments, without reference to a document are to the specified Articles,
Sections, subsections and other subdivisions of, and the Appendix and other attachments to, this Agreement; (iii) a reference to
a subsection without further reference to a Section is a reference to such subsection as contained in the same Section in which
the reference appears, and this rule shall also apply to other subdivisions within a Section or subsection; (iv) the words “herein,”
“hereof,” “hereunder,” “hereby” and other words of similar import refer to this Agreement as
a whole and not to any particular provision and (v) the words “include,” “includes” and “including”
are deemed to be followed by the phrase “without limitation.”

 

ARTICLE II

SHARED SERVICES

 

2.1          Shared
Services. Upon the terms and subject to the conditions set forth in this Agreement, the Seller will provide Buyer with certain
shared services (the “Seller Shared Services”) and Buyer shall provide Seller with certain shared services (the
“Buyer Shared Services”), all as set forth on the Appendix attached hereto and incorporated herein by this reference.
Such Seller Shared Services to be provided by Seller as Buyer shall reasonably request from time to time during the term hereof,
and such Buyer Shared Services to be provided by Buyer as Seller shall reasonably request from time to time during the term hereof.
The Seller Shared Services and Buyer Shared Services collectively referred to herein as the “Shared Services”.

 

    	 

    	 

    

 

2.2          Personnel.
In providing Shared Services, Seller and Buyer, as applicable, shall each utilize personnel that are acceptable to the other party
in such other party’s reasonable discretion. Further, Seller may employ the services of third parties to provide Seller Shared
Services to the extent such third party services were routinely utilized to provide similar services to the Seller prior to the
Effective Date or are reasonably necessary for the efficient performance of the Seller Shared Services, provided such third parties
are acceptable to Buyer in Buyer’s reasonable discretion.

 

2.3          Representatives.
Seller and Buyer shall each appoint a representative to act as its primary contact person for the provision of all of the Shared
Services (collectively, the “Primary Coordinators”). The initial Primary Coordinators shall be Michael McCrackan
for Seller and Rich Ryan for Buyer. Each party may treat an act of the Primary Coordinator of the other party as being authorized
by such other party without inquiring behind such act or ascertaining whether such Primary Coordinator had authority to so act.
Buyer and Seller shall advise each other in writing of any change in the Primary Coordinators, setting forth the name of the Primary
Coordinator to be replaced and the name of the replacement, and certifying that the replacement Primary Coordinator is authorized
to act for such party in all matters relating to this Agreement. Buyer and Seller agree that all communications relating to the
provision of the Shared Services shall be directed to the Primary Coordinators.

 

2.4          Level
of Shared Services.

 

(a)          Seller
and Buyer, as applicable, shall each, in all material respects, use commercially reasonable efforts to provide their respective
Shared Services in a commercially reasonable manner in accordance with general industry standards and exercising the same degree
of care as it exercised or would exercise in performing the same or similar services for its own account.

 

(b)          In
addition to being subject to the terms and conditions of this Agreement for the provision of the Shared Services, Buyer agrees
that the Seller Shared Services provided by third parties shall be subject to the terms and conditions of any agreements between
Seller and such third parties. Seller shall consult with Buyer, and obtain Buyer’s approval (which cannot be unreasonably
withheld or delayed) concerning the terms and conditions of any such agreements to be entered into, or proposed to be entered into,
with third parties after the date hereof for provision of any of the Seller Shared Services.

 

2.5          Limitation
of Liability. In the absence of negligent acts or omissions or willful misconduct on the part of Seller or Buyer, as applicable,
in providing Shared Services, neither Seller nor Buyer shall be liable for any claims, liabilities, damages, losses, costs, expenses
(including settlements, judgments, court costs and reasonable attorneys’ fees), fines and penalties, arising out of any actual
or alleged injury, loss or damage of any nature whatsoever in providing Shared Services for which it is responsible hereunder.
Notwithstanding anything to the contrary contained herein, in the event Seller or Buyer commits an error with respect to or incorrectly
performs or fails to perform any Shared Service, at the other party’s request, such party shall use reasonable efforts and
good faith to correct such error, re-perform or perform such Shared Service at no additional cost to the other party.

 

2.6          Access.
Seller shall with reasonable advance notice and during normal business hours provide personnel of Buyer, including consultants
and other representatives or advisors, with access to its equipment, offices, warehouse, plant, telecommunications and computer
equipment and systems, and any other areas and equipment to the extent reasonably required for personnel of Buyer to monitor the
progress and performance of the Seller Shared Services.

 

    	 

    	 

    

 

ARTICLE III

COMPENSATION

 

3.1          Consideration.
As consideration for the Shared Services, Buyer shall pay to Seller and Seller shall pay to Buyer, as applicable, the fees or other
compensation as may be specified for each of the Shared Services as set forth in the Appendix.

 

3.2          Invoices.
Seller will submit one invoice to Buyer each month for all Seller Shared Services provided to Buyer by Seller during the prior
month. Similarly, Buyer will submit one invoice to Seller each month for all Buyer Shared Services provided to Seller by Buyer
during the prior month. Each invoice shall include a reasonably detailed summary of the Shared Services provided, including those
for which there are fixed dollar fees and those provided on a non-fixed fee basis, together with documentation supporting each
of the invoiced amounts that are not covered by a fixed fee. Each party shall have the right to setoff any amount owed to it by
the other party against amounts it owes to such other party hereunder. All invoices shall be sent to the attention of the Primary
Coordinators at the addresses set forth in Section 6.5 hereof or to such other addresses as shall have specified by proper notice
by either party.

 

3.3          Payment
of Invoices. Payment of all invoices in respect of a Shared Service shall be made by check or electronic funds transmission
in U.S. Dollars, within thirty (30) days of the invoice date unless otherwise specified in the Appendix relating to such Shared
Service.

 

ARTICLE IV

CONFIDENTIALITY

 

4.1          Obligation.
Each party shall not use or permit the use of (without the prior written consent of the other party) and shall keep, and shall
cause its consultants and advisors to keep, confidential all Confidential Information (hereafter defined) of the other party received
pursuant to or in connection with this Agreement.

 

4.2          Care
and Inadvertent Disclosure. With respect to any Confidential Information, each party agrees as follows:

 

(a)          it
shall use the same degree of care in safeguarding the Confidential Information of the other party as it uses to safeguard its own
information which must be held in confidence; and

 

(b)          upon
the discovery of any inadvertent disclosure or unauthorized use of the other party’s Confidential Information, or upon obtaining
notice of such a disclosure or use from the other party, it shall take all necessary actions to prevent any further inadvertent
disclosure or unauthorized use, and such other party shall be entitled to pursue any other remedy which may be available to it.

 

4.3          Injunctive
Relief. Seller, on the one hand, and Buyer, on the other, acknowledge and agree that the other party would be damaged irreparably
if any provisions of ARTICLE IV are not performed in accordance with their specific terms or are otherwise breached, and that money
damages alone would be an inadequate remedy to compensate the other party for any such breach. Accordingly, each party agrees that
the other party will be entitled to an injunction or injunctions to prevent breaches of the provisions of ARTICLE IV and to enforce
specifically ARTICLE IV in any action instituted in any court of the United States or any state thereof having jurisdiction over
the parties and the matter, in addition to any other remedy to which a party may be entitled at law or in equity, which other remedies,
including monetary damages, will in no way be limited by the foregoing.

 

    	 

    	 

    

 

4.4          Definition.
For purposes of this Agreement, the term “Confidential Information” means any and all non-public or trade secret
information related, in any manner whatsoever, to the business, operations, or condition (financial or otherwise) of a party hereto,
whether now existing or acquired or developed after the date hereof. Notwithstanding the above, Confidential Information shall
not include any information of a party which is or becomes part of the public domain, except for information which became part
of the public domain as a result of disclosure by the other party or its employees, representatives or advisors of Confidential
Information of the other party in violation of this Agreement or the wrongful disclosure of such information by a third party.

 

ARTICLE V

TERM AND TERMINATION

 

5.1          Term.
This Agreement shall become effective on the Effective Date and shall remain in force until either (i) Buyer sends notice to Seller,
at least ten (10) days in advance of the date of such termination, that it no longer requires any Seller Shared Services, or (ii)
until such time as the term of all Shared Services have expired, as provided on the Appendix as related to each such Shared Service,
whichever first occurs, unless this Agreement is terminated prior thereto pursuant to Section 5.2. If this Agreement is terminated
by Buyer pursuant to Subsection 5.1(i), Seller shall nevertheless remain entitled to receive the Buyer Shared Services pursuant
to this Agreement, on the terms contained herein, for the term then in effect and each applicable renewal term.

 

5.2          Termination.
Buyer may terminate any Seller Shared Services to be provided to it under this Agreement at any time, by providing Seller with
at least ten (10) days’ prior written notice, specifying the date on which such Shared Services are to be terminated; provided,
however, in the event that Seller retains a third party to perform any Seller Shared Services, such notice period shall be extended
to be the same notice period for cancellation contractually or legally required to be given to such third party by Seller, but
in no event to longer than thirty (30) days. In the event of any such termination, the termination will not affect this Agreement
with respect to any Shared Services not so terminated by Buyer under this Section. In addition to Buyer’s right to terminate
Shared Services, if either party (hereafter called the “Defaulting Party”) shall fail to materially perform
or default in the performance of any of its obligations under this Agreement, the party entitled to the benefit of such performance
(hereinafter referred to as a “Non-Defaulting Party”) may give written notice to the Defaulting Party specifying
the nature of such failure or default and stating that the Non-Defaulting Party intends to terminate this Agreement with respect
to the Defaulting Party if such failure or default is not cured (i) in the case of a payment default, within three (3) business
days of such written notice, or (ii) in the case of all other defaults, within fifteen (15) days of such written notice or, in
the case of defaults not susceptible to being cured with fifteen (15) days, to a reasonable period of time provided the Defaulting
Party commences curing with such fifteen (15) days and diligently pursues the cure until completed. If any failure or default so
specified is not cured within such applicable period, the Non-Defaulting Party may elect to immediately terminate this Agreement
with respect to the Defaulting Party. Such termination shall be effective upon giving a written notice of termination from the
Non-Defaulting Party to the Defaulting Party and shall be without prejudice to any other right or remedy which may be available
to the Non-Defaulting Party against the Defaulting Party under this Agreement or at law or in equity, including any right of the
Non-Defaulting Party to seek specific performance and/or obtain replacement or substitute services, if available, for any Shared
Services not provided by the Defaulting Party, at the expense of the Defaulting Party.

 

    	 

    	 

    

 

5.3          Survival
of Certain Obligations. Without prejudice to the survival of the other agreements of the parties, the following obligations
shall survive the termination of this Agreement: (a) the obligations of each party under Articles IV, V, and VI and (b) a party’s
right to receive the compensation for the Shared Services provided by it hereunder provided in Section 3.1 above incurred prior
to the effective date of termination.

 

ARTICLE VI

MISCELLANEOUS

 

6.1          Complete
Agreement; Construction. This Agreement, including the Appendix hereto, shall constitute the entire agreement between the parties
with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect
to such subject matter. In the event of any inconsistency between this Agreement and any Appendix hereto, the Appendix shall prevail.

 

6.2          Other
Related Agreements. This Agreement is not intended to address, and should not be interpreted to address, any other matters
specifically and expressly covered by the Purchase Agreement or any other document executed in connection with the transaction
contemplated under the Purchase Agreement.

 

6.3          Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall
become effective when one or more such counterparts have been signed by each of the parties and delivered to the other parties.

 

6.4          Survival
of Agreements. Except as otherwise contemplated by this Agreement, all covenants and agreements of the parties contained in
this Agreement shall survive the Effective Date.

 

6.5          Notices.
All notices and other communications hereunder shall be in writing and hand delivered or mailed by certified mail (return receipt
requested) or sent by nationally-recognized overnight courier service or sent by any means of electronic message transmission with
delivery confirmed (by voice or otherwise) to the parties at the following addresses (or at such other addresses for a party as
shall be specified by like notice) and will be deemed given on the date on which such notice is received:

 

If to the Seller:

 

Vuzix Corporation

Attn: Steve Ward

75 Town Centre Drive

Rochester, NY 14623

with a copy to:

 

Woods Oviatt Gilman LLP

2 State Street

Rochester, NY 14618

Attention: Robert F. Mechur

 

If to the Buyer:

 

TDG Acquisition Company, LLC

Attn: Mr. Rich Ryan

2166 Brighton Henrietta Town
Line Road          Rochester NY 14623

 

    	 

    	 

    

 

with a copy to:

 

Metz Lewis Brodman Must O’Keefe, LLC

11 Stanwix Street, 18th Floor

Pittsburgh, Pennsylvania 15222

Attn: Christopher A. Brodman, Esq.

 

6.6         Waivers.
The failure of any party to require strict performance by any other party of any provision in this Agreement will not waive or
diminish that party’s right to demand strict performance thereafter of that or any other provision hereof.

 

6.7         Amendments.
This Agreement may not be modified or amended except by an agreement in writing signed by each of the parties hereto.

 

6.8         Assignment.
This Agreement may not be assigned by either party without the consent of the other party. Any assignment in contravention of this
Section 6.8 shall be void.

 

6.9          Successors
and Assigns. The provisions to this Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties
and their respective successors and permitted assigns.

 

6.10        Third
Party Beneficiaries. This Agreement is solely for the benefit of the parties hereto and should not be deemed to confer upon
third parties any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference
to this Agreement.

 

6.11        Title
and Headings. Titles and headings to sections herein are inserted for the convenience of reference only and are not intended
to be a part of or to affect the meaning or interpretation of this Agreement.

 

6.12        GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS
MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK.

 

6.13        Consent
to Jurisdiction. Each of the parties irrevocably submits to the exclusive jurisdiction of (a) the courts of the State of Delaware,
and (b) the United States District Court for the Western District of New York , for the purposes of any suit, action or other proceeding
arising out of this Agreement or any transaction contemplated hereby. Each of the parties agrees to commence any action, suit or
proceeding relating hereto either in the United States District Court for the Western District of New York or if such suit, action
or other proceeding may not be brought in such court for jurisdictional reasons, in the applicable New York state court sitting
in Monroe County, New York. Each of the parties further agrees that service of any process, summons, notice or document by U.S.
registered mail to such party’s respective address set forth above shall be effective service of process for any action,
suit or proceeding in New York with respect to any matters to which it has submitted to jurisdiction in this Section 6.13. Each
of the parties irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising
out of this Agreement or the transactions contemplated hereby in (i) the New York state court sitting in Monroe County, New York,
or (ii) the United States District Court for the Western District of New York, and hereby further irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has
been brought in an inconvenient forum.

 

    	 

    	 

    

 

6.14          Severability.
In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any
way be affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

 

6.15          Relationship
of Parties. It is expressly agreed and understood that in providing the Shared Services the Seller and Buyer are independent
contractors working for themselves and neither such party is, nor shall it be deemed to be, and shall not hold itself out as, an
agent, legal representative or employee of the other. Nothing in this Agreement shall be deemed or construed by the parties or
any third party as creating the relationship of principal and agent, partnership or joint venture between the parties, it being
understood and agreed that no provision contained herein, and no act of the parties, shall be deemed to create any relationship
between the parties other than the relationship of buyer and seller of services nor be deemed to vest any rights, interests or
claims in any third parties. The parties do not intend to waive any privileges or rights to which they may be entitled.

 

[Remainder
of Page Blank; Signature Page Follows]

 

    	 

    	 

    

Signature
Page to Shared Services Agreement

 

IN WITNESS WHEREOF, the
parties hereto have caused this Shared Services Agreement to be executed the day and year first above written.

 

	 	TDG ACQUISITION COMPANY, LLC
	 	 	 	 
	 	By:	  James P. Balet
	 	 	 	 
	 	 	Name:	James P. Balet
	 	 	 	 
	 	 	Title:	Secretary
	 	 	 	 
	 	VUZIX CORPORATION
	 	 	 	 
	 	By:	  /s/ Paul Travers
	 	 	 	 
	 	 	Name:	Paul Travers
	 	 	 	 
	 	 	Title:	CEOVuzix
Authorized Reseller Agreement

 

This Agreement, effective June 15, 2012,
is made between VUZIX Corporation, with a principal place of business located at 75 Town Centre Drive, Rochester, New York
14623 U.S.A. (herein referred to as “VUZIX”) and TDG Acquisition Company, LLC, with a principal place of business
located at 2166 Brighton Henrietta Town Line Road, Rochester New York 14623 (hereinafter referred to as “RESELLER”)
each a ”Party” and, collectively, the “Parties”.

 

		I.	GRANT AND AREA OF RESPONSIBILITY

 

		1.1.	VUZIX grants to RESELLER the exclusive right to sell, promote
and distribute the products listed in Schedule B (hereinafter referred to as the “Products”) in the Exclusive Markets
within the territory described on Schedule A (such markets within that territory being referred to herein as the “Territory”).

 

		1.2.	This right to sell, promote and distribute the Products is limited
to the Territory, and does not extend to any other area or market. No re-exporting of Products to any customers outside of the
Territory, either directly or indirectly, is authorized unless written permission is granted by VUZIX.

 

		II.	RESELLER’S OBLIGATION

 

		2.1.	RESELLER agrees to promote the sale, distribution and promotion
of the Products in the Territory as it deems appropriate.

 

		2.2.	RESELLER may use such promotional aids, selling aids, educational
materials, advertising materials and related items as VUZIX may furnish to RESELLER. RESELLER, at its own cost, may develop its
own promotional materials which shall maintain the image of VUZIX and the Products and protect VUZIX’ trademarks. RESELLER
shall provide VUZIX with copies of all such materials before they are released publicly. If VUZIX provides any written comments
within ten days (10) after its receipt of such materials, RESELLER will work with VUZIX to implement or address those suggestions
and RESELLER shall not use such materials until it has obtained VUZIX’ written approval. If such approval is not granted
by VUZIX, in its sole discretion, the materials may not be used or distributed by RESELLER.

 

		2.3.	RESELLER will (i) use good faith efforts to avoid deceptive,
misleading or unethical practices that are or might be detrimental to VUZIX or the Products; (ii) make no representation known
by it to be false or misleading with regard to VUZIX or the Products; (iii) not publish or employ advertising material known by
it to be deceptive with regard to VUZIX or the Products; (iv) make no representations, warranties or guarantees to customers or
the trade with respect to the specifications, features or capabilities of the Products other than those made by VUZIX in the Products’
user documentation.

 

		2.4.	Both Parties shall comply with all applicable international,
national, provincial, state, regional, and local laws and regulations, including but not limited to export and import laws and
regulations, in performing its duties hereunder and in any of their dealings with respect to the Products.

 

		2.5.	RESELLER covenants and agrees not to distribute or resell any
of the Products under any trade names or trademarks other than those employed by VUZIX with respect thereto, which tradenames and
trademarks RESELLER is hereby authorized to use for such purposes, subject to the further provisions hereof.

 

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		2.6.	RESELLER will distribute VUZIX products with all packaging, warranties,
disclaimers, and License Agreements intact as shipped from VUZIX. RESELLER special packaging needs may be provided only by VUZIX,
subject to possible incremental charges, at the sole option of VUZIX.

 

		III.	VUZIX’ OBLIGATIONS

 

		3.1.	VUZIX will, at the request of RESELLER, provide RESELLER with
information and materials reasonably necessary for RESELLER's marketing as contemplated hereby. VUZIX shall furnish to RESELLER,
free of charge, such number of copies as required by RESELLER, within reason, of all available manuals in the English Language,
and its standard Product related sales and advertising material, product manuals, installation and operation manuals in the English
language then in general use by VUZIX (unless specifically prepared for another customer of VUZIX). For the avoidance of doubt,
VUZIX shall have no obligation to create for or provide to RESELLER any materials other than its then-existing standard materials.

 

		3.2.	At its option, VUZIX may provide RESELLER with additional sales
and marketing assistance. Any Market Development Funding, Product samples, shared advertising reimbursements and other related
activities if offered by VUZIX will be covered in separate letters of agreement. VUZIX does not represent that any of the foregoing
will be made available to RESELLER.

 

		3.3.	VUZIX shall, at its offices in Rochester, New York, make available
to RESELLER technically competent personnel to counsel RESELLER's engineers in a manner reasonably necessary to enable RESELLER's
marketing of the Products as contemplated herein.

 

		3.4.	VUZIX shall provide to RESELLER access to any reasonably necessary
technical training courses that it develops and makes generally available to other resellers of VUZIX products, free of charge,
at VUZIX’ premises. RESELLER shall bear the expenses of having its personnel attend such courses, including, but not limited
to, the expenses of transportation, accommodation, food and salaries. The foregoing shall not apply to courses that are developed
at the request and expense of another reseller.

 

		3.5.	In the event where the Territory is or includes geographical
areas outside the United States, VUZIX in cooperation with the RESELLER shall prepare, obtain or transmit to RESELLER and all parties
concerned, all documents that are required to export the Products from the United States to RESELLER’s designated shipment
point provided, however, that VUZIX shall not prepare, obtain or transport documents providing for the export of the Products in
violation of applicable United States export regulations or where such export is prohibited or substantially restricted. VUZIX
shall not be responsible for delivery delays caused by its inability to obtain export clearance so long as VUZIX reasonably attempts
to obtain such clearance. In no case shall RESELLER export the Products without valid, required export licenses.

 

		IV.	TERMS OF SALE AND SHIPMENT

 

		4.1.	All sales to RESELLER shall be in accordance with VUZIX’
then current prices for resellers, which is determined based on volume discounts from retail, as disclosed in Schedule C. VUZIX
reserves the right to change prices and discounts at any time, upon reasonable notice. VUZIX will use commercially reasonable efforts
to provide RESELLER with at least sixty (60) days written notice of such price changes on any of the Products.

 

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		4.2.	VUZIX reserves the right, to change at any time, and from time
to time, the Products, and the packaging, labeling, and promotional material and techniques relating to the Products. VUZIX will
use commercially reasonable efforts to inform the RESELLER in advance when such changes are intended.

 

		4.3.	All orders are subject to acceptance and written confirmation
by VUZIX, which acceptance shall not be unreasonably withheld. Delivery is subject to Product availability at the time RESELLER’s
order is received and, if any order is in excess of currently available stock levels after accounting for any pre-existing orders
and VUZIX’ manufacturing lead times, VUZIX will endeavor to fill orders promptly, but shall not be liable for any damages
resulting from any delay in delivery of such Products.

 

		4.4.	VUZIX will make every reasonable effort to meet delivery dates
quoted or acknowledged. If the Products are in short supply, VUZIX reserves the right to allocate the Products among VUZIX’
customers as VUZIX deems appropriate and shall not be liable for any damages (including incidental or consequential damages) resulting
from delays due to its inventory levels or production scheduling. Orders accepted by VUZIX may be canceled by RESELLER in the event
that there is a material delay in shipment.

 

		4.5.	VUZIX shall pack all Products it delivers in accordance with
good commercial practices. Shipment of Products will be made FOB VUZIX’ distribution facilities. Title and risk of loss pass
to RESELLER when the Products are delivered to the freight carrier. RESELLER is responsible for arranging its own freight insurance.
RESELLER is obligated to examine any shipment promptly upon receipt and report any shortage of or damage to merchandise as soon
as reasonably practical to the carrier, its agents or insurance agents and to VUZIX. In the event that RESELLER fails to notify
VUZIX of any shortage or fails to make a claim against VUZIX within Ten (10) days after receipt, RESELLER agrees that VUZIX is
not responsible for any shortage incurred. RESELLER agrees that VUZIX is not responsible for any losses or damage caused by the
freight carrier or any other cause during shipment. Any RESELLER claim for other adjustments of an invoice is deemed to be waived
if RESELLER fails to present such claim within thirty (30) days from the date of the receipt of the applicable Products. No claims,
credits, or offsets may be deducted from any VUZIX invoice by RESELLER.

 

		4.6.	Purchase Orders and instructions between VUZIX and RESELLER shall
be written and may be sent by facsimile machine, mail, electronic mail and/or hand delivered and shall be effective as to VUZIX
when received by VUZIX, subject to the other provisions of this Agreement. While each of RESELLER or VUZIX may employ its own form
of purchase documentation (purchase orders, acceptances, etc.), each understands and agrees that the terms of this Agreement shall
exclusively govern the sale of the Products and any terms or provisions of any such purchase documentation which are different
from or in addition to the terms of this Agreement shall be null, void and of no force and effect.

 

		4.7.	Payment for the Products purchased by RESELLER pursuant to this
Agreement shall be net thirty (30) days. Payments shall be made in United States Dollars, by wire transfer, credit card or check,
all in accordance with the terms stated on VUZIX’ invoices. If RESELLER fails to pay any sum when due, after fifteen (15)
days after written notice VUZIX may discontinue performance under this Agreement and pursue account collection activities.

 

		4.8.	While RESELLER is free to determine its own actual prices at
which the Products are sold by the RESELLER to its customers, VUZIX where allowed by law encourages a Minimum Suggested Retail
Price for all advertisements of the Products.

 

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		4.9.	Net RESELLER prices in Schedule C are FOB Rochester, New York
in U.S. Dollars, unless otherwise indicated on the quotation applicable to an order. VUZIX reserves the right to charge RESELLER
for any special routing, packing, handling, or insurance requested by RESELLER and agreed to by VUZIX. Orders shipped under special
routing instructions must be separately agreed upon and may be subject to additional charges.

 

		4.10.	Prices are exclusive of, and the RESELLER will report and pay
all applicable sales, use, service, excise, import duties, export duties, value added or like taxes, unless RESELLER has provided
VUZIX with an appropriate exemption certificate for the destination.

 

		4.11.	RESELLER acknowledges that any commitment made by RESELLER to
its customers, including without limitation with respect to price, quantities, delivery, specifications, warranties or suitability
will be RESELLER’s sole responsibility, and, except in cases of gross negligence or willful misconduct by VUZIX, RESELLER
will indemnify VUZIX from liability for any such commitment by RESELLER.

 

		V.	LIMITED WARRANTY

 

		5.1.	VUZIX makes warranties only to the end user purchaser of the
Products. VUZIX make no warranties, express or implied, to RESELLER, other than that the Products conform to their applicable specification
in all material respects..

 

		VI.	INDEMNIFICATION; DISCLAIMER OF WARRANTIES; LIMITED LIABILITY

 

		6.1.	Subject to the limitations set forth in this Agreement, VUZIX
agrees to defend or settle any claim against RESELLER made by RESELLER’s end-user customer or any other third parties and
VUZIX will indemnify and hold RESELLER harmless for any loss, damage or liability (including reasonable attorneys’ fees)
resulting from a claim for breach of the warranty that VUZIX provides to end-user customers or that the Products, delivered under
this Agreement (a) infringe a patent, utility model, industrial design, copyright, trade secret, mask work, trademark in the Territory
or country where Products are used, sold, or receive Support, (b) fail to meet the published specification relating to such Product
in any material respect, or (c) caused injury or other damages to any third party due to defects in design, material, workmanship,
or other cause, provided RESELLER (1) promptly notifies VUZIX in writing of any such claim; (2) cooperates reasonably with VUZIX
in, and grants VUZIX sole control of, the defense of such claim; (3) and has sold the subject Products in compliance with this
Agreement in all respects material to such claim. VUZIX will not settle any claim for which it must give indemnification hereunder
unless such settlement fully and finally releases RESELLER from any liability with respect thereto without cost, restriction or
liabilities to RESELLER.

 

		6.2.	If such a claim appears likely, VUZIX may modify the Product,
procure any necessary license, or replace it. If VUZIX determines that none of these alternatives is reasonably available, VUZIX
will refund RESELLER’s purchase price upon return of the Product including actual shipping expenses incurred to purchase
and to return the Product.

 

		6.3.	Notwithstanding the prior Section 6.1 and 6.2, VUZIX has no obligation
for any claim of infringement arising from: (1) VUZIX’ compliance with RESELLER’s designs, specifications or instructions;
(2) Product modification by RESELLER or a third party; (3) Product use not authorized by specifications or related application
notes or manuals; (4) or use of the Product with products not supplied or authorized by VUZIX.

 

		6.4.	RESELLER agrees to indemnify VUZIX (including reasonable attorney’s
fees and costs of litigation) against, and hold VUZIX harmless from, any and all claims by any person resulting from RESELLER’s
gross negligence, willful misconduct, or breach of the Agreement. VUZIX agrees to indemnify RESELLER (including reasonable attorney’s
fees and costs of litigation) against, and hold RESELLER harmless from, any and all claims by any person resulting from VUZIX’
gross negligence, willful misconduct, or breach of the Agreement.,

 

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		6.5.	The terms in this Section and the end user warranty included
with the Product state VUZIX’ entire liability to RESELLER and its customers for claims of intellectual property infringement.

 

		6.6.	VUZIX MAKES NO WARRANTIES OR REPRESENTATIONS AS TO PERFORMANCE
OF THE PRODUCTS EXCEPT AS SET FORTH IN VUZIX’ LIMITED WARRANTY CONTAINED HEREIN AND IN THE END USER WARRANTY CONTAINED WITH
THE PRODUCTS.

 

		6.7.	UNDER NO CIRCUMSTANCES SHALL VUZIX OR ITS SUPPLIERS BE LIABLE
TO RESELLER, END-USER CUSTOMERS OR ANY THIRD PARTIES ON ACCOUNT OF ANY CLAIM (WHETHER BASED UPON PRINCIPLES OF CONTRACT, WARRANTY,
NEGLIGENCE OR OTHER TORT OR OTHERWISE) FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR EXEMPLARY DAMAGES WHATSOEVER, INCLUDING BUT
NOT LIMITED TO LOST PROFITS AND BUSINESS INTERRUPTION.

 

		6.8.	VUZIX’ MAXIMUM LIABILITY UNDER ITS LIMITED WARRANTY SET
FORTH IN SECTION 5.1 TO RESELLER IS EXPRESSLY LIMITED TO THE AMOUNTS PAID BY RESELLER UNDER THIS AGREEMENT. The provisions of this
Section 6.8 or of Section 6.7 shall not be deemed to limit the obligations of VUZIX under Section 6.1 with respect to third party
claims.

 

		VII.	RESELLER’S STATUS AND MISCELLANEOUS RESPONSIBILITIES

 

		7.1.	RESELLER is an independent contractor, not an agent or employee
of VUZIX. This Agreement does not create an employer-employee, a franchisor-franchisee or a principal-agent relationship between
VUZIX and RESELLER. RESELLER does not have, nor will it represent that is has, any power, right or authority to enter into agreements
for or on behalf of VUZIX, to create any obligation due or owed VUZIX, to accept service of process on VUZIX or to bind VUZIX in
any manner.

 

		7.2.	VUZIX authorizes RESELLER to display one or more designated VUZIX
trademarks, logo types, trade names and insignia (“VUZIX Marks”) in the Territory solely to promote, distribute and
sell the Products, and to otherwise meet RESELLER’s obligations under this Agreement. Any display of VUZIX Marks must be
in good taste and in accordance with written standards provided by VUZIX for their display. RESELLER will not use any name or symbol
in a way, which may imply that RESELLER is an agency or branch of VUZIX. RESELLER will discontinue any use of any VUZIX Marks as
requested by VUZIX promptly upon notice. RESELLER will provide VUZIX with copies of any materials using the VUZIX Marks in advance
of any public use. RESELLER shall not use such materials unless approved by VUZIX. Any rights or purported rights in any VUZIX
Marks acquired through RESELLER’s use belong solely to VUZIX, and any goodwill in the VUZIX Marks will accrue to VUZIX. Upon
termination of this Agreement, RESELLER agrees to discontinue immediately any use of the VUZIX name or trademarks, service marks
and logos, and immediately remove the VUZIX name from any catalogs, websites, displays, telephone directories, trade literature
and all other advertising medium. Failure to discontinue the use of VUZIX name, marks and logos shall constitute trademark infringement.

 

    	Page 5 of 9

    	 

    

 

		7.3.	RESELLER grants VUZIX the non-exclusive, royalty free right to
display RESELLER’s trademarks (the “RESELLER Marks”) in advertising and promotional material solely for directing
prospective purchasers of Products to RESELLER’s selling locations. Any display of the RESELLER Marks must be in good taste
and in accordance with standards provided by RESELLER for their display. Any rights or purported rights in any RESELLER trademarks
acquired by VUZIX through this Agreement belong solely to RESELLER. Upon termination of this Agreement, VUZIX agrees to discontinue
immediately any use of the RESELLER name or trademarks, service marks and logos.

 

		7.4.	RESELLER acknowledges that all manufacturing specifications and
data, financial information, sales and marketing information, distribution agreements and their terms, repair, replacement and
maintenance information and data related to the Products (except for any Product information intended for disclosure without restriction
to customers or end users) which are obtained by RESELLER from VUZIX is commercially valuable confidential information of VUZIX
(the “Confidential Information”). RESELLER shall use the Confidential Information solely in connection with the distribution
of the Products and shall not use or disclose the Confidential Information for any other purpose.

 

		7.5.	RESELLER will protect the Confidential Information in the same
manner in which it protects its own like proprietary, confidential, and trade secret information. All such Confidential Information
will remain confidential for five (5) years after the date of disclosure.

 

		7.6.	Notwithstanding the above section, there are no obligation upon
the RESELLER with respect to Confidential Information which (a) was in the RESELLER’s possession before the disclosure; (b)
is or becomes a matter of public knowledge through no fault of the RESELLER; (c) is rightfully received by the RESELLER from a
third party that does not have a duty of confidentiality; (d) is disclosed by VUZIX to a third party without a duty of confidentiality
on the third party; (E) is disclosed under operation of law; or (F) is disclosed by the RESELLER with VUZIX’ prior written
approval.

 

		VIII.	TERMS AND TERMINATION

 

		8.1.	This Agreement will have a term of ten (10) years from the date
VUZIX accepts and signs this Agreement (the “Initial Term”) and following the end of the Initial Term will renew automatically
for a successor One (1) year period (each such one-year period a “Renewal Term”), unless terminated by either Party.

 

		8.2.	Either Party may terminate this Agreement at the end of the Initial
Term or any Renewal Term, by giving the other Party prior written notice of its intention to terminate this Agreement at least
sixty (60) days before the end of the Initial Term or a Renewal Term, as applicable.

 

		8.3.	If either Party becomes insolvent, is unable to pay its debt
when due, files for bankruptcy, is the subject of involuntary bankruptcy (which is not dismissed within sixty (60) days of filing),
has a receiver appointed, or has its assets assigned, the other Party may terminate this Agreement without notice and may cancel
any unfulfilled obligations.

 

		8.4.	Either Party may immediately terminate this Agreement because
of a material breach by the other Party of this Agreement unless such other Party cures the breach within sixty (60) days after
having received written notice of such breach from the non-breaching Party, provided that if such breach is not susceptible of
cure, this Agreement shall be terminated upon the giving of notice.

 

		8.5.	Upon termination of this Agreement for whatever reason, all amounts
owed from RESELLER to VUZIX shall immediately become due. Upon termination, RESELLER will immediately cease to be an authorized
VUZIX reseller. RESELLER shall not thereafter represent or hold itself out as an authorized VUZIX RESELLER or engage in any practices
that might make it appear that RESELLER is still an authorized VUZIX RESELLER. Upon termination, and will refrain from using any
VUZIX Trademark or name. Authorization of RESELLER and any of its authorized sub-resellers to use any VUZIX Mark will cease upon
such termination or expiration.

 

    	Page 6 of 9

    	 

    

 

		8.6.	Upon termination of this Agreement by VUZIX without cause, VUZIX
shall repurchase within a reasonable period of time from RESELLER, any or all Products then in the possession or under the control
of RESELLER that are still unopened, in like new merchantable condition and in their original packaging. Such repurchase shall
be made at the price paid for such Products by RESELLER, FOB RESELLER’s principal place of business, less any and all amounts
then owing, for whatever reasons, from RESELLER to VUZIX. In the event that VUZIX fails to repurchase any or all such Products,
in addition to any other remedies available to RESELLER for breach of this Section, RESELLER shall be entitled to sell such Products
to any person or entity, whether or not in the Territory or the Exclusive Markets, pursuant to the terms and conditions of this
Agreement as if this Agreement had not be terminated.

 

		8.7.	Acceptance of orders by VUZIX after notice of termination has
been given shall be construed as separate transactions and shall not operate as a renewal or revival of this Agreement or as a
waiver of such termination. VUZIX reserves the right for any reason and in its sole discretion to accept or reject, in whole or
in part, any such orders.

 

		8.8.	All obligations concerning outstanding transactions, warranties,
support, Products, intellectual property protection, limitations of liability and remedies, confidentiality, and the general terms
and conditions will survive termination or expiration of this Agreement, except that the provisions for confidentially will survive
only through the periods set forth in this Agreement.

 

		8.9.	The Party terminating this Agreement pursuant to the express
provisions hereof shall not incur any liability to the other Party by reason of termination of this Agreement either for compensation
or damages on account of the loss of present or prospective profits or expenditures or investments or for any reason.

 

		8.10.	The term "Force Majeure" as employed in this Section
means and includes the causes beyond the reasonable control of the Party so affected, including, but not limited to, war (declared
or undeclared), hostility, riot, revolution, embargo, fire, earthquake, flood, or other acts of God. The Party so affected shall
use its best efforts to provide the other Party with a prompt written notice within fourteen (14) days after occurrence thereof.

 

		8.11.	If the performance of this Agreement or any obligation hereunder
is prevented, delayed, restricted or intervened with by reason of Force Majeure, the Party so affected shall be excused from such
performance to the extent of such prevention, delay, restriction or interference and such shall not constitute a breach of this
Agreement, provided, however, that the Party so affected shall use its best efforts to avoid or remove such causes of non-performance
and whenever those are removed, it shall commence and/or continue performance promptly. Notwithstanding the foregoing, nothing
shall relieve the RESELLER from any payment obligations under this Agreement.

 

		8.12.	Notwithstanding the foregoing, in the event that the Force Majeure
remains uncured for a period of Ninety (90) days, the Party not so affected may, at no charge and without any liability to the
Party so affected (other than the obligation to pay amounts due or to become due and the obligation to continue to be bound by
the terms of this Agreement that expressly or by their nature survive termination), cancel all orders and terminate this Agreement
on prior written notice to the Party so affected.

 

    	Page 7 of 9

    	 

    

 

		IX.	ASSIGNMENTS

 

		9.1.	This Agreement may not be assigned or otherwise transferred by
RESELLER without the prior written consent of VUZIX, and any such assignment or transfer without VUZIX’ prior written consent
shall be null and void and of no force or effect.

 

		X.	CHOICE OF LAW AND ARBITRATION

 

		10.1.	This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, USA without regard to its conflict or choice of law provisions.

 

		10.2.	RESELLER and VUZIX agree to first enter into negotiations to
resolve any controversy, claim or dispute (“dispute”) arising under or relating to this Agreement. The Parties agree
to negotiate in good faith to reach a mutually agreeable resolution of such dispute within a reasonable period of time. If good
faith negotiations are unsuccessful, VUZIX and RESELLER agree to resolve the dispute by binding and final arbitration before a
single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. The
arbitration shall take place in the County of Monroe, New York, USA. The arbitrator shall be bound to follow the provisions of
this Agreement in resolving the dispute, and may not award punitive damages. The decision of the arbitrator may be entered or enforced
in any court of competent jurisdiction.

 

		XI.	INTERPRETATION OF THIS AGREEMENT

 

		11.1.	Both Parties acknowledge that they are familiar with RESELLER
agreements. In the construction of any terms in this Agreement, no term shall be construed against any Party on the basis of that
Party having drafted that language.

 

		XII.	WAIVER

 

		12.1.	In the event that either VUZIX or RESELLER waives any right under
any provision of this Agreement, such waiver shall not constitute a waiver with regard to any other rights set forth in this Agreement
or any subsequent occurrence of the waived event or circumstance.

 

		XIII.	VALIDITY OF AGREEMENT

 

		13.1.	VUZIX and RESELLER agree that if any portion of this Agreement
is found to be invalid, such a finding does not serve to invalidate any other provision of this Agreement, nor does such a finding
serve to invalidate this Agreement as a whole.

 

		XIV.	GENERAL

 

		14.1.	All notices that are required under this Agreement will be in
writing and will be considered given as of twenty-four (24) hours after sending by electronic means, facsimile transmission, overnight
courier, or hand delivery, or as of four (4) days of certified mailing and appropriately addressed to the locations noted at the
beginning of this Agreement, or elsewhere as directed by each Party, provided that in each case other than hand delivery notice
of delivery has been requested and received.

 

		14.2.	This Agreement constitutes the entire understanding between VUZIX
and RESELLER, and supersedes any previous communications, representations or agreements between the Parties, whether oral or written,
regarding transactions hereunder. No modification of this Agreement will be binding on either Party unless made in writing and
signed by both Parties.

 

    	Page 8 of 9

    	 

    

 

		14.3.	Parties hereto agree that neither will refer to this Agreement
or to the presence thereof in any advertising material or otherwise, or disclose the terms or conditions of this Agreement to a
third party without prior written consent of the other Party, such consent not to be unreasonably withheld.

 

		XV.	SIGNATURE

 

		15.1.	Each Party warrants that the person signing on its behalf is
its duly authorized representative, that it has read and understood this Agreement, that the Party enters into this Agreement freely
to advance its economic interests and that signature binds the Party to the obligations imposed upon it by this Agreement.

 

	VUZIX CORPORATION	 	TDG ACQUISITION COMPANY, LLC
	 	 	“RESELLER”
	 	 	 
	/s/ Paul Travers	 	/s/ James P. Balet
	Signature	 	Signature
	 	 	 
	Paul Travers	 	James P. Balet
	Print Name & Title	 	Print Name & Title
	 	 	 
	June 15, 2012	 	June 15, 2012
	Date Signed	 	Date Signed

 

    	Page 9 of 9

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