Document:

Exhibit 10.4

 

WAIVER AND CONSENT 

 

This Waiver and Consent (“Consent”)
is made and entered into as of December ___, 2014, by and among Vuzix Corporation, a Delaware corporation (the “Company”),
and the party identified on the signature page hereto (the “Purchaser”). Capitalized terms used but not defined
herein will have the meanings assigned to them in the Warrant (as defined below).

 

WHEREAS, the Company consummated a public
offering (the “Public Offering”) of its securities on July 30, 2013 pursuant to which the Company sold shares
of its Common Stock and Warrants to purchase shares of Common Stock (the “Warrants”) to Aegis Capital Corp.,
as underwriter, (“Underwriter”); and

 

WHEREAS, in connection with the Public Offering,
certain holders of the Company’s outstanding debt (the “Company Debt”) agreed to convert such Company
Debt into securities of the Company (the “Debt Conversion”) with the same terms as the securities issued by
the Company in the Public Offering and, as a result, such holders of the Company Debt, upon such Debt Conversion, received shares
of Common Stock and Warrants; and

 

WHEREAS, as a result of either the distribution
of securities by the Underwriter or the Debt Conversion, the undersigned Purchaser is the beneficial holder of a Warrant; and

 

WHEREAS, the Company intends to enter into
a financing transaction which (i) is with a strategic investor that will generate gross proceeds of at least Ten Million Dollars
($10,000,000), (ii) is in consideration for securities of the Company which are sold at a minimum effective price of Five Dollars
($5.00) per share of Common Stock, (iii) by its terms would not otherwise trigger the anti-dilution rights of the Purchaser under
Section 2(b) of the Warrant, and (iv) will not include any price protection anti-dilution rights provisions (other than rights
of participation, “make-whole” options exercisable by the investor for cash (which may, in certain instances, be at
a per share price of less than $5.00) or upon violation of this Consent) (the “Proposed Offering”); and

 

WHEREAS, the Purchaser is entitled to certain
anti-dilution protections under the terms of the Warrant; and

 

WHEREAS, in connection with the Proposed
Offering, the Company and Purchaser agree to the following waivers and consents.

 

NOW, THEREFORE, for good and valuable consideration,
the receipt of which is hereby acknowledged, the Company and Purchaser hereby agree as follows:

 

1.            Provided the Proposed Offering closes on or before
February 27, 2015, Purchaser permanently and irrevocably waives the anti-dilution protections and other rights set forth in Section
2(b) of the Warrant.

 

2.            The waivers and consents set forth in this Consent
will be effective only if (i) holders of not less than 70% of the outstanding Warrants issued in the Public Offering and in connection
with the Debt Conversion, in the aggregate, execute and deliver this Consent to the Company and (ii) holders of 85% of the outstanding
principal amounts of notes as of December 31, 2014, which such notes were originally issued on June 3, 2014, execute and deliver
the form of Note Waiver annexed hereto as Exhibit A to the Company; on or before January 2, 2015.

 

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3.            The undersigned represents to the Company that it
is the holder of the Warrant issued in the Public Offering or the Debt Conversion, as the case may be, has not transferred or assigned
any rights under the Warrant to any third party and has the authority to enter into and deliver this Consent. The undersigned further
represents to the Company that it will not transfer or assign the Warrant or any rights thereunder to a third party unless such
third party agrees to execute a waiver and consent agreeing to the terms set forth herein.

 

4.            This Consent may be executed in counterparts, each
of which shall be deemed an original, but all of which shall together constitute one and the same instrument. This Consent may
be signed and delivered by facsimile or electronically and such facsimile or electronically signed and delivered Consent shall
be enforceable.

 

5.            This Consent will be subject to amendment and/or waiver
as described in the Warrant.

 

6.            The invalidity or unenforceability of any provision
hereof will in no way affect the validity or enforceability of any other provision.

 

7.            All notices, demands, requests, consents, approvals,
and other communications required or permitted in connection with this Consent shall be made and given in the same manner set forth
in the Warrant.

 

8.            This Consent shall be governed by, interpreted and
construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws and as further
described in Section 11 of the Warrant.

 

9.            The parties acknowledge that this Consent is also
being entered into for the benefit of the investor to the Proposed Offering who is hereby made a third party beneficiary of this
Consent with rights of enforcement. Until the sooner of the abandonment of the Proposed Offering or February 27, 2015, this Consent
may not be amended without the consent of such investor.

 

10.          Except as expressly set forth herein,
this Consent shall not be deemed to be a waiver, amendment or modification of any provisions of the Warrant or of any
right, power or remedy of the Purchaser, or constitute a waiver of any provision of the Warrant (except to the extent
herein set forth), or any other document, instrument and/or agreement executed or delivered in connection therewith and any other
agreement to which the Purchaser may be a party, in each case whether arising before or after the date hereof or as a result of
performance hereunder or thereunder. Except as set forth herein, the Purchaser reserves all rights, remedies, powers, or privileges
available under the Warrant and any other agreement to which the Purchaser may be a party, at law or otherwise. This Consent
shall not constitute a novation or satisfaction and accord of the Warrant or any other document, instrument and/or agreement
executed or delivered in connection therewith and any other agreement to which the Purchaser may be a party.

 

11.          The Company and the Purchaser acknowledge
that certain information provided to the Purchaser in connection with obtaining this Consent may constitute material, non-public
information related to the Company (the “Proposed Offering MNPI”). The Company agrees that it shall, on or before January
16, 2015, file a Current Report on Form 8-K with the Securities and Exchange Commission disclosing such Proposed Offering MNPI

 

(Signatures to follow)

 

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IN WITNESS WHEREOF, the Company and the undersigned Purchaser
have caused this Waiver to be executed as of the date first written above.

 

	 	VUZIX CORPORATION
	 	the “Company”
	 	 
	 	By:	 

 

“PURCHASER”

 

Name of Purchaser: ____________________________________________________________________

 

Signature of Authorized Signatory of Purchaser:
_____________________________________________

 

Name of Authorized Signatory: ___________________________________________________________

 

Title of Authorized Signatory: ____________________________________________________________

 

    	3EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT CANCELATION AGREEMENT 

This CANCELATION AGREEMENT (this “Agreement”) is entered into as of December 30, 2014 (the “Cancelation
Date”), by and between YRC Worldwide Inc., a Delaware Corporation (the “Company”), and James L. Welch (the “Executive”). 

WHEREAS the Company and the Executive are currently parties to that certain employment agreement (the “Employment Agreement”)
entered into July 22, 2011 and amended October 30, 2012. 
 WHEREAS, in connection with the termination of the Employment
Agreement, the Company and the Executive are entering into the severance agreement dated December 30, 2014 (the “Severance Agreement”) attached hereto as Exhibit A; 

WHEREAS, in consideration for canceling the Employment Agreement the Company is entering into the Severance Agreement and granting the
Executive 280,615 shares of restricted stock (the “Guaranteed Stock Grant”) which amount reflects the remaining shares of restricted stock guaranteed to be granted to the Executive under the Employment Agreement on the sole
condition that Executive remained employed through the end of his contract term; and 
 WHEREAS, the Company and the Executive desire to
terminate the Employment Agreement as of the Cancelation Date on the terms and conditions set forth below. 
 NOW, THEREFORE, in
consideration of the premises and mutual agreements contained in this Agreement, the parties agree as follows: 
 1. The Employment Agreement
shall, subject to this Agreement, terminate on the Cancelation Date. 
 2. The Company and the Executive shall enter into the Severance
Agreement. 
 3. In consideration for the cancelation of the Employment Agreement, the Company hereby grants to the Executive the Guaranteed
Stock Grant, which will vest 20% on February 28, 2015, 60% on July 31, 2015 and 20% on February 28, 2016. 
 4.
Section 4(c) of the Employment Agreement shall continue to apply in accordance with its terms. 
 5. Employee Benefits. For so
long as the Executive remains employed by the Company: 
 (i) Executive shall be entitled to participate in such employee
benefit plans and insurance programs made available generally to senior executives of the Company, or which it may adopt from time to time, for its employees, in accordance with the eligibility requirements for participation therein. 

(ii) Company shall pay for premiums for coverage under the Company’s medical and dental plans for Executive and
Executive’s eligible dependents participating in such plans. 

 The parties shall undertake commercially reasonable efforts to structure the benefits under this
Section 5(ii) in a manner that is most tax efficient for the parties (i.e., on an after-tax basis). Further, in the event that the payment of amounts payable hereunder this Section 5(ii) shall result in adverse tax consequences under
Chapter 100 of the Internal Revenue Code of 1986, as amended and the treasury regulations and other guidance promulgated thereunder (the “Code”), Code Section 4980D or otherwise to the Company, the parties shall undertake
commercially reasonable efforts to restructure such benefit in an economically equivalent manner to avoid the imposition of such taxes on the Company, provided, however, that should the Company’s auditors determine in good faith that no such
alternative arrangement is achievable, Executive shall not be entitled to his rights to payment under this Section 5(ii). 

(iii) Company shall provide Executive with a five hundred thousand U.S. dollar ($500,000) term life insurance policy and
maintain such policy with such beneficiary as designated by Executive. 

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

	
	YRC WORLDWIDE INC.
	
	 /s/ James E. Hoffman

	 Name: James E. Hoffman
 Title: Chairman of the
Board of Directors

	
	 /s/ James L. Welch

	James L. Welch

  
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