Document:

Exhibit 10.7

 

Execution Version

 

SECURITIES TRANSFER AGREEMENT

 

This Securities Transfer Agreement
is dated as of May 12, 2022 (this “Agreement”), by and among Prime Number Acquisition LLC, a Delaware limited liability
company (the “Seller”), and the parties identified on the signature page hereto (each a “Buyer”
and collectively, the “Buyers”).

 

WHEREAS, the Seller is one
of the sponsors of Prime Number Acquisition I Corp., a Delaware corporation (the “Company”), a newly-organized blank
check company, or special purpose acquisition company, formed for the purpose of effecting a merger, stock exchange, asset acquisition,
stock purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities (a “Business
Combination”);

 

WHEREAS, the Company is contemplating
its initial public offering of 6,000,000 units, each consisting one share of Class A common stock, $0.0001 par value, and one-half of
one warrant, and one right (the “IPO”);

 

WHEREAS, the Company has granted
the underwriters in the IPO an option (the “Over-allotment Option”) to purchase up to additional 900,000 units within
forty-five (45) days of the closing of the IPO;

 

WHEREAS, in connection with
the IPO, the Seller acquired 1,628,400 shares of Class A common stock of the Company, $0.0001 par value, among which, up to 212,400 shares
are subject to forfeiture if the Over-allotment Option is not exercised (each, a “Founder Share”, collectively, the
 “Founder Shares”) at the aggregate purchase price of $23,600, or approximately $0.0145 per share (the “Purchase
Price”);

 

WHEREAS, each of the Buyers
is an officer or director/director nominee or a personnel (and/or its designee) of the Company;

 

WHEREAS, on the terms and
subject to the conditions set forth in this Agreement, the Seller wishes to transfer to the Buyers and the Buyers wish to acquire from
the Seller, the aggregated amount of 138,500 Founder Shares at the Purchase Price immediately prior to or upon the effectiveness of the
registration statement in Form S-1 (File No. 333-262457, the “Registration Statement”) in connection with the IPO.

 

NOW, THEREFORE, in consideration
of the premises, representations, warranties and the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree
as follows:

 

Section 1.           Transfer
of Shares. Seller hereby agrees to transfer the aggregated amount of 138,500 Founder Shares to the Buyers immediately prior to or
upon the effectiveness of Registration Statement (the “Transfer”) as listed on the Schedule I attached hereto;
and the Buyers agree to pay the Seller an aggregate amount of $2,007.246 at the Transfer, in consideration of the transfer of the Founder
Shares.

 

     

     

    

 

Section 2.           Potential
Forfeiture of Shares.

 

(a)            In the event that
the Company determines for any reason not to nominate, elect or appoint any Buyer as a member of the board of directors of the Company,
or if any Buyer otherwise does not become a member of the board of directors of the Company for any reason, on or prior to the closing
of the Public Offering (as defined below), or if the Public Offering is not consummated on or prior to [], 2022, such Buyer shall automatically
forfeit all of the Shares held by such Buyer, which Shares shall automatically be assigned and returned to the Seller, and the Seller
shall promptly return the applicable portion of the Purchase Price to such Buyer. 

 

(b)            In
the event that, following the closing of the Public Offering and prior to the consummation of a Business Combination, any Buyer resigns
or otherwise ceases to serve as a member of the board of the directors for any reason, Seller (or its designee(s)) shall have the right,
but not the obligation, to purchase from the Buyer fifty percent (50%) of the Shares purchased by such Buyer hereunder, for a purchase
price equal to the per-share purchase price paid by such Buyer for such Shares hereunder. Such right shall be exercisable by Seller at
any time prior to the consummation of a Business Combination by providing written notice of such exercise to the applicable Buyer.

  

(c)            The
applicable Buyer shall take all actions as may be reasonably necessary to consummate any forfeiture or sale contemplated by this Section 2,
including entering into agreements and delivering certificates and instruments and consents as may be deemed by Seller to be necessary
or appropriate, and the applicable Buyer hereby grants to Seller and any representative designated by Seller without further action by
such Buyer a limited irrevocable power of attorney to effect any forfeiture or transfer contemplated hereby on behalf of such Buyer, which
power of attorney shall be deemed to be coupled with an interest.

 

Section 3.           No
Conflicts. Each party represents and warrants that neither the execution and delivery of this Agreement by such party, nor the consummation
or performance by such party of any of the transactions contemplated hereby, will with or without notice or lapse of time, constitute,
create or result in a breach or violation of, default under, loss of benefit or right under or acceleration of performance of any obligation
required under any agreement to which it is a party.

 

Section 4.           Investment
Representations. Each Buyer represents and warrants, with respect to himself or herself only, as set forth herein. Such Buyer hereby
acknowledges that an investment in the Shares involves certain significant risks. Such Buyer has no need for liquidity in its investment
in the Shares for the foreseeable future and is able to bear the risk of that investment for an indefinite period. Such Buyer acknowledges
and hereby agrees that the Shares will not be transferable under any circumstances unless registered by the Company in accordance with
federal and state securities laws or sold in compliance with an exemption under such laws and such transfer complies with all applicable
lock-up restrictions on such Buyer (as described in the Company’s draft registration statement on Form S-1, as may be amended
(the “Registration Statement”), under the Securities Act of 1933, as amended (the “Act”), relating
to a contemplated underwritten public offering by the Company (the “Public Offering”)). Such Buyer further understands
and agrees that Buyer will be required to execute and deliver (a) a letter agreement including, among other provisions, the foregoing
transfer restrictions, and (b) a stock escrow agreement with respect to such shares, in each case as described in the Registration
Statement, and that any certificates evidencing the Shares bear a legend referring to such transfer restrictions.

 

    2

     

    

 

The Shares are being
acquired solely for such Buyer’s own account, for investment purposes only, and are not being purchased with a view to or for
the resale, distribution, subdivision or fractionalization thereof; and such Buyer has no present plans to enter into any contract,
undertaking, agreement or arrangement for such resale, distribution, subdivision or fractionalization. Such Buyer has been given the
opportunity to (i) ask questions of and receive answers from the Seller and the Company concerning the terms and conditions of
the Shares, and the business and financial condition of the Company and (ii) obtain any additional information that the Seller
possesses or can acquire without unreasonable effort or expense that is necessary to assist such Buyer in evaluating the
advisability of the purchase of the Shares and an investment in the Company. Such Buyer is not relying on any oral representation
made by any person as to the Company or its operations, financial condition or prospects. Such Buyer is an “accredited
investor” as defined in Regulation D promulgated by the Securities and Exchange Commission under the Act. In the event such
Buyer does not join the Board of Directors of the Company upon the consummation of the Public Offering (whether and either at the
election of the Company or such Buyer for any reason), then the Buyer shall promptly return the Shares to the Company.

 

Section 5.           Miscellaneous.
This Agreement, together with the certificates, documents, instruments and writings that are delivered pursuant hereto, constitutes the
entire agreement and understanding of the parties hereto in respect of its subject matter. This Agreement may be executed in two or more
counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. This Agreement
may not be amended, modified or waived as to any particular provision, except by a written instrument executed by all parties hereto.
Except as otherwise provided herein, no party hereto may assign either this Agreement or any of its rights, interests, or obligations
hereunder without the prior written approval of the other party.

 

[Signature Page Follows]

 

    3

     

    

 

 

IN WITNESS WHEREOF, the undersigned have executed
this Agreement to be effective as of the date first set forth above.

 

	 	
    Prime Number Acquisition LLC

     

	 	 
	 	By:	/s/ Dongfeng Wang
	 	Name: Dongfeng Wang
	 	Title:   Manager
	 	 
	 	BUYERS:
	 	 
	 	/s/ Dongfeng Wang
	 	Dongfeng Wang
	 	
     

     

	 	/s/ David Friedman
	 	David Friedman
	 	
     

     

	 	/s/ Qinyu Wang
	 	Qinyu Wang
	 	
     

     

	 	/s/ David Sherman
	 	David Sherman
	 	 
	 	
     

    /s/ Chris Dunn

	 	Chris Dunn
	 	
     

     

	 	/s/ Sarah Gu
	 	Sarah Gu
	 	
     

     

	 	/s/ Kris Yang
	 	Kris Yang

 

[Signature Page to Securities Transfer
Agreement]

 

    4

     

    

 

Schedule I

 

	Name of Transferee	 	Number of Assigned 
 Shares	 	 	Purchase Price	 
	Dongfeng Wang	 	 	45,000	 	 	$	652.174	 
	David Friedman	 	 	30,000	 	 	$	434.783	 
	Qinyu Wang	 	 	15,000	 	 	$	217.391	 
	David Sherman	 	 	15,000	 	 	$	217.391	 
	Chris Dunn	 	 	15,000	 	 	$	217.391	 
	Sarah Gu	 	 	15,000	 	 	$	217.391	 
	Kris Yang	 	 	3,500	 	 	$	50.725	 
	 	 	 	Total: 138,500	 	 	 	Total: $2,007.246	 

 

    5Exhibit 10.1

 

Certain identified information has been excluded
from the exhibit because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly
disclosed.

 

LICENSE AGREEMENT

 

This
License Agreement (“Agreement”) is entered into as of the Effective Date (as defined below) by and between Vuzix Corporation,
a Delaware corporation having its place of business at 25 Hendrix Road, Suite A, West Henrietta, New York 14586 (“Vuzix”),
Atomistic SAS, a simplified stock company formed under the laws of France with a place of business at 3 Boulevard de Belfort, 59000 Lille,
France (“Atomistic”) and each of Jonathan Sachs (“JS”) and Jerry Woodall (“JW”)
only with regard to Sections 1, 6.1, 6.2, 6.5(a), 10, 11 and 13. Vuzix and Atomistic are referred
to herein collectively as “Companies.” The Companies, JS and JW are referred to herein collectively as “Parties.”

 

RECITALS

 

WHEREAS, Vuzix desires to
enter into an arrangement whereby it would license certain technology from Atomistic and Atomistic UK for developmental and commercial
products, and Atomistic directly and on behalf of Atomistic UK desires to grant to Vuzix an exclusive worldwide right and license to such
technology; and

 

WHEREAS, Vuzix desires to
fund a custom design of a backplane by Atomistic and Atomistic UK, and Atomistic directly and through Atomistic UK desires to design a
backplane in accordance with the terms and conditions of this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein, Vuzix, Atomistic (for itself and for
Atomistic UK) and, as limited for JS and JW to Sections 1, 6.1, 6.2, 6.5(a), 10, 11 and 13 as listed in the preamble and on the
signature page, hereby agree as follows:

 

1.            Definitions.
In addition to any terms defined elsewhere in this Agreement, the following terms will have the meanings set forth below:

 

1.1            “Abandoned
Patent” will have the meaning set forth in Section 7.2.

 

1.2            “Affiliate”
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common control
with, such first Person.

 

1.3            “Anti-Corruption
Laws” means, both collectively and separately, any anti-corruption, anti-bribery or similar governmental ethics and transparency
laws that have particular jurisdiction, including, without limitation, the US Foreign Corrupt Practices Act of 1977 (the “FCPA”)
and the UK Bribery Act 2010.

 

1.4            “Applicable
Laws” means all laws, ordinances, rules, and regulations applicable to this Agreement or the activities contemplated hereunder.

 

1.5            “Assigning
Party” will have the meaning set forth in Section 13.9.

 

1.6            “Atomistic
Indemnified Parties” will have the meaning set forth in Section 9.2(a).

 

    	 	Page 1 of 20.
 
	 

     

    

 

1.7            “Atomistic
UK” means Atomistic Ltd. (Company Number 13607578), a private limited company formed under the laws of England and Wales and
a wholly-owned subsidiary and Affiliate of Atomistic.

 

1.8            “Backplane”
means a specific design and delivery of a mask set and other elements required for production of a silicon chip with (a) pixel driving
circuitry, (b) one or more driver integrated circuits for providing voltages and currents to uLEDs or uLasers; and (c) a controller
integrated circuit for relaying image data to the driver integrated circuits developed as part of this Agreement.

 

1.9            “Confidential
Information” means any information communicated by one party hereto to the other, which, if in written or other tangible form,
is marked as proprietary or confidential by the disclosing party or, if orally disclosed, is declared confidential by the disclosing party
at the time of disclosure, in each case as further clarified in Section 11.

 

1.10            “Conflict
Minerals” means cassiterite, columbite-tantalite, gold, and wolframite; their derivatives including tantalum, tin, and tungsten;
and, any other mineral, derivative, or ore that the Organization for Economic Co-operation and Development (OECD), United States Securities
and Exchange Commission (SEC), United States government, or United States Secretary of State considers to be directly or indirectly financing
conflict in the Covered Countries.

 

1.11            “control”
(including, the terms “controlling,” “controlled by,” and “under common control with”),
as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of that Person, whether through the ownership of voting securities, by contract, or otherwise.

 

1.12            “Covered
Countries” means the Democratic Republic of Congo (DRC) and any adjoining country that shares an internationally recognized
border with the DRC.

 

1.13            “Disability”
[**] is entitled to receive benefits for “total disability,” “long term disability” or similarly categorized disability
under the terms of any law or under any policy of disability income insurance which may be maintained [**]

 

1.14            “Effective
Date” means May 12th, 2022, the date this Agreement was executed and became binding upon the Parties.

 

1.15            “Field”
means (a) uLED or uLaser based on [**]

 

1.16            “Granted
License” will have the meaning set forth in Section 2.1.

 

1.17            “Improvements”
means any new data, process, manufacture, improvement, discovery, claim, formula, trade secret, technology or know-how based on the Licensed
Technology.

 

1.18            “Indemnified
Party” will have the meaning set forth in Section 9.3(a).

 

1.19            “Indemnifying
Party” will have the meaning set forth in Section 9.3(a).

 

1.20            “Intellectual
Property Rights” means any and all common law and statutory rights in, arising out of, or associated with the following, throughout
the world: patents, utility models, and applications therefor and all reissues, divisions, re-examinations, renewals, extensions, provisionals,
continuations and continuations-in-part thereof and equivalent or similar rights in inventions and discoveries anywhere in the world,
including invention disclosures, rights associated with trade secrets, confidential and proprietary information and know-how, industrial
designs and any registrations and applications, copyrights, copyright registrations and applications therefor and all other rights corresponding
thereto, database rights, mask works, mask work registrations and applications therefor and any equivalent or similar rights in semiconductor
masks, layouts, architectures or topology, moral and economic rights of authors and inventors, however denominated and any similar or
equivalent rights to any of the foregoing.

 

    	 	Page 2 of 20.
 
	 

     

    

 

1.21            “Jointly
Own” means that each owner thereof is free to exploit such rights or property and authorize others to do so, with no obligation
to account to the other party or owner, for profits or otherwise, subject, in the case of Atomistic and Atomistic UK, to any Granted License
hereunder.

 

1.22            “Licensed
Patents” means all U.S. and international patents (including, without limitation, Provisional Patents, originals, divisions,
continuations, continuations in part or reissues) and U.S. and international patent applications in the Field that, at any time during
the Term of this Agreement, are owned by Atomistic, Atomistic UK or to which either has the right to grant licenses anywhere in the world.

 

1.23            “Licensed
Technology” means all Technology in the Field and all Intellectual Property Rights therein that, at any time during the Term
of this Agreement, are owned by Atomistic, Atomistic UK or to which either has the right to grant licenses anywhere in the world. Licensed
Technology includes, without limitation, any rights of Atomistic and/or Atomistic UK in any Jointly Owned Improvements. Licensed Technology
does not include Licensed Patents.

 

1.24            “Licensed
Products” means any product or service that is composed of or that includes Licensed Technology or Licensed Patents.

 

1.25            “Person”
means any individual, corporation, limited or general partnership, limited liability company, limited liability partnership, trust, association,
joint venture, or other entity or group.

 

1.26            “Provisional
Patents” means all U.S. and international provisional patent applications that, at any time during the Term of this Agreement,
are owned by Atomistic, Atomistic UK or to which either has the right to grant licenses anywhere in the world.

 

1.27            “Restated
Certificate” means the amended by-laws filed by Atomistic with the Registry of Trade and Companies of Lille Métropole
on or prior to the Effective Date.

 

1.28            “Royalties”
means all consideration received or booked as revenue by Atomistic or any Subsidiary, including without limitation, royalty payments,
milestone payments, upfront payments, development payments, earn-outs, consulting payments, related to or associated with:

 

(a)            the
sale, transfer, license or other grant of rights to or of the Licensed Technology and Licensed Patents (“License Royalties”);
and

 

(b)            the
sale, transfer, lease or disposition of any products or services composed of or including Licensed Technology and/or which would infringe
the Licensed Technology or Licensed Patents (“Product Royalties”).

 

1.29            “Shareholders’
Agreement” means that certain shareholders’ agreement that was executed and became binding upon the Parties as of the
Effective Date.

 

    	 	Page 3 of 20.
 
	 

     

    

 

1.30            “Stock
Purchase Agreement” means that certain stock purchase agreement that was executed and became binding upon the Parties as of
the Effective Date.

 

1.31            “Subsidiary”
means any Person that is ultimately controlled by Atomistic.

 

1.32            “Technology”
means any and all of the following in the Field: works of authorship, computer programs, source code and executable code, whether embodied
in software, firmware or otherwise, assemblers, applets, compilers, user interfaces, application programming interfaces, protocols, architectures,
documentation, annotations, comments, designs, files, records, schematics, test methodologies, test vectors, emulation and simulation
tools and reports, hardware development tools, models, tooling, prototypes, breadboards and other devices, data, data structures, databases,
data compilations, data sets, data derived, arrangement, organization, manner of aggregation, criteria, labels, objects, images, sounds,
collections, inventions (whether or not patentable), invention disclosures, discoveries, Improvements, technology, content, proprietary
and confidential ideas and information, know-how and information maintained as trade secrets, tools, concepts, insights, input, output,
outcomes, results, predictions, translations, analysis, visualizations, techniques, methods, processes, formulae, patterns, features,
algorithms and specifications, customer lists and supplier lists and any and all instantiations or embodiments of the foregoing.

 

1.33            “Third
Party Claim” will have the meaning set forth in Section 9.1(a).

 

1.34            “Transaction
Agreements” means this Agreement, the Shareholders’ Agreement, the Stock Purchase Agreement, the Restated Certificate
and any other agreements, instruments or documents entered into in connection with this Agreement.

 

1.35            “uLED”
is an inorganic micro light emitting diode.

 

1.36            “uLaser”
is an inorganic micro light emitting laser diode.

 

1.37            “U.S.”
means the United States of America.

 

1.38            “Vuzix
Indemnified Parties” will have the meaning set forth in Section 9.1(a).

 

2.            License
Grant.

 

2.1            Grant.
Subject to the terms and conditions of this Agreement, Atomistic for itself and Atomistic UK hereby grants to Vuzix, and Vuzix hereby
accepts, an exclusive, sub-licensable (the duration of which shall be limited according
to Section 5.5(c)), transferable (to the extent permitted in Section 13.9) worldwide, fully-paid up and royalty-free, perpetual
(except if this license terminates as provided in Section 5.4 or as contemplated in Section 5.6) license under the Licensed
Technology and Licensed Patents to develop, have developed, create derivative works, have created derivative works, make, have made, process,
use, market, distribute, sell, offer for sale, promote and import Licensed Products during the Term of this Agreement (the “Granted
License”). Atomistic and its Affiliates will retain the right to use the Licensed Technology and the Licensed Patents solely
to perform continued development in the Field including any and all obligations Atomistic and/or Atomistic UK may have in any related
project with Vuzix.

 

2.2            Reservation
of Rights; No Implied Licenses. All rights not granted herein by Atomistic are reserved.

 

    	 	Page 4 of 20.
 
	 

     

    

 

3.            Payments.

 

3.1            Installment
Payments. In consideration of the Granted License, the custom design of a Backplane and other rights of Vuzix in this Agreement, as
long as this Agreement has not been previously terminated, Atomistic is not then in default of any of its obligations under this Agreement
and no party (other than Vuzix) is in default of its obligations under the Stock Purchase Agreement, Vuzix has paid or will pay Atomistic
the following amounts within the following time periods, or at such other times as agreed in writing by Vuzix and Atomistic:

 

(a)            $2,110,000,
which amount was paid prior to the Effective Date;

 

(b)            $6,390,000
within ten (10) business days after the Effective Date;

 

(c)            $3,000,000
within ten (10) business days of July 1, 2022;

 

(d)            $7,000,000
within ten (10) business days of October 1, 2022;

 

(e)            $2,000,000
within ten (10) business days of January 1, 2023;

 

(f)            $6,000,000
within ten (10) business days of April 1, 2023;

 

(g)            $1,500,000
within ten (10) business days of July 1, 2023;

 

(h)            $1,000,000
within ten (10) business days of October 1, 2023; and

 

(i)            $1,000,000
within ten (10) business days of December 31, 2023.

 

3.2            Granted
License Renewal.

 

(a)            Vuzix
may (but is not obligated to) renew the Granted License for a calendar year beyond 31 December 2023 in such amount and in such manner
as agreed between Vuzix and Atomistic.

 

(b)            On
or before December 1, 2023 (and each applicable December 1st thereafter if applicable), Vuzix and Atomistic will
either (a) agree in writing on a payment schedule for the following calendar year in such amounts and at such times as agreed and
Vuzix will be obligated to make all payments as per such agreement (the “Granted License Renewal”); or (b) Vuzix
will notify Atomistic that it will not renew the Granted License.

 

3.3            Currencies.
Unless a different currency is specified, all payments under this Agreement will be made in United States dollars (“$”).

 

3.4            Withholding
Taxes. Vuzix may withhold appropriate tax from any payment to be made to Atomistic under this Agreement provided that such withholding
is required by Applicable Laws and Vuzix submits the amounts withheld to the applicable tax authorities. In such event Vuzix will furnish
Atomistic with proof of payment of such tax together with official or other appropriate evidence issued by the applicable government authority.
In such event Vuzix will appropriately adjust the payments set forth in Section 3 so that the amount of such payments minus the amount
of the taxes withheld by Vuzix is equal to the amounts set forth in Section 3.

 

3.5            Acceleration.
For so long as Vuzix is required to make payments due according to Section 3, Vuzix may accelerate and pre-pay its payment obligations
under this Agreement at any time in its sole discretion.

 

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4.            Ownership
and Use.

 

4.1            Subject
to Section 4.3(b), Atomistic will own all right, title and interest in and to any and all Intellectual Property Rights which existed
prior to the date of this Agreement or which it develops after the date hereof, including in the Field, which in the case of Licensed
Technology and Licensed Patents is subject to the Granted License.

 

4.2            Vuzix
will own all right, title and interest in and to any Improvements that are conceived, generated, or first reduced to practice solely by
Vuzix and any of its Affiliates’ employees, agents or contractors. Atomistic will own all right, title and interest in and to any
Improvements that are conceived, generated, or first reduced to practice solely by Atomistic employees, agents or contractors, and such
Improvements will be subject to the Granted License.

 

4.3            Vuzix
and Atomistic will Jointly Own all right, title and interest (including all Intellectual Property Rights) in and to (a) any Improvements
that are jointly conceived, generated, or reduced to practice by Vuzix employees, agents or contractors, and Atomistic employees, agents
or contractors during the Term as a result of the activities contemplated under this Agreement, subject to the Granted License in Jointly
Owned Improvements (whether patented or unpatented); and (b) a [**], regardless of whether it was jointly conceived, generated, or
reduced to practice by Vuzix employees, agents or contractors, and Atomistic employees, agents or contractors during the Term or independently
by Atomistic except that Vuzix shall own exclusively any design files and [**] (the “Design Elements”) and Atomistic
will retain the right to use the Design Elements for its development with no restrictions or limitations, financial or otherwise. Should
the Granted License be terminated according to Section 5.4 then Atomistic shall have a fully paid-up, royalty-free, irrevocable,
perpetual and non-exclusive right to use and sublicense the Design Elements.

 

5.            Term
and Termination.

 

5.1            Term.
The term of this Agreement will commence as of the Effective Date and will continue (unless terminated sooner as set forth below) until
the later of (i) twenty-five (25) years from the Effective Date, or (ii) the last Licensed Patent expires in every jurisdiction,
at which point the licenses granted hereunder will be deemed fully paid-up, royalty-free, irrevocable, and perpetual and non-exclusive
(the “Term”).

 

5.2            Termination
by Atomistic. Atomistic may terminate this Agreement upon written notice to Vuzix in the event that:

 

(a)            Vuzix
has failed to pay any amounts when due under Section 3, or as otherwise agreed in writing by the Companies, within thirty (30) days
following receipt by Vuzix of written notice from Atomistic demanding the payment of such amount;

 

(b)            Vuzix
has failed to perform any other material obligation under this Agreement, and has failed to cure such non-performance within sixty (60)
days following receipt by Vuzix of written notice from Atomistic specifying in reasonable detail the nature of such failure; or

 

(c)            A
voluntary agreement is approved, or an administration order is made, or a receiver or administrative receiver is appointed over any of
Vuzix’s assets or undertaking or a resolution or petition to wind up Vuzix is passed or presented (other than for the purposes of
a genuine scheme of solvent amalgamation or reconstruction) or if any circumstances arise which entitle the court or a creditor to appoint
a receiver, administrative receiver or administrator or to present a winding-up petition or make a winding-up order or Vuzix ceases to
carry on business; or if Vuzix suffers any event in a foreign jurisdiction analogous to or comparable with any of the foregoing.

 

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5.3            Termination
by Vuzix. Vuzix may terminate this Agreement as follows:

 

(a)            if
Atomistic has failed to perform any material obligation under this Agreement, and has failed to cure such non-performance within sixty
(60) days following receipt by Atomistic of written notice from Vuzix specifying in reasonable detail the nature of such failure;

 

(b)            if
Atomistic, Atomistic UK, JS or JW fail to perform any material obligation under the Transaction Agreements that are not cured within any
applicable cure periods in such agreements; or

 

(c)            upon
the death or Disability [**]

 

5.4            Termination
of Granted License. Atomistic may terminate the Granted License as follows:

 

(a)            If
Vuzix fails to make any payment when due under Section 3, or as otherwise agreed in writing by the Companies, within thirty (30)
days following receipt by Vuzix of written notice from Atomistic demanding the payment of such amount;

 

(b)            If
Vuzix does not fund an annual agreed Granted License Renewal for the Licensed Technology under Section 3.2(b), then Atomistic may
terminate the Granted License effective on the January 1st immediately following the applicable December 1st contemplated by
Section 3.2(b); or

 

(c)            Vuzix
breaches its obligations under Section 2 of the Stock Purchase Agreement, which breach is not cured within thirty (30) days following
receipt by Vuzix of written notice under the Stock Purchase Agreement of such breach.

 

5.5            Certain
Effects of Termination.

 

(a)            Vuzix
will have no obligation to pay any amounts under Section 3 for any payments having a payment date that are after the effective date
of a termination by Vuzix under Section 5.3; and

 

(b)            If
Atomistic terminates the Granted License under Section 5.4(b), Atomistic will pay Vuzix:

 

(i)            [**]
License Royalties according to the provisions set forth on Appendix A;

 

(ii)            [**]
royalty rate agreed to by the Companies of all Product Royalties according to the provisions set forth on Appendix A. If the Companies
are unable to agree on the royalty rate in this Section 5.5(b)(ii), they will engage a third-party having expertise and knowledge
of the royalty rates for sales of products such as those that are subject to the Product Royalties to set the applicable royalty rate
and that third-party’s determination will be binding on the Companies which will split any fees incurred for the third-party; and

 

    	 	Page 7 of 20.
 
	 

     

    

 

(iii)            If
Atomistic chooses to terminate its business operations associated with work in the Field, Vuzix will pay Atomistic within thirty (30)
days of being notified of its actual, documented and necessary out-of-pocket costs to reduce or cease its and any Subsidiary operations
and activities directly associated with work in the Field and to pay severance to terminated employees after such termination (assuming
that such development efforts or the services of such employees do not resume whether as employees or contractors other than by those
who remain that are required to manage the affairs of the business), which process must be completed within six (6) months after
such a termination or such additional period of time necessary to comply with Applicable Law. If upon notice Vuzix requests that Atomistic
extend the period of time to reduce or cease its operations up to twelve (12) months then Vuzix and Atomistic will in good faith discuss
the timing and costs for such an extended period. If the Companies are unable to agree, they will engage a third-party having expertise
and knowledge to fix timing and costs for such an extended period, that third-party’s determination will be binding on the Companies.
If once the agreement regarding a plan and additional payments by Vuzix to Atomistic is reached then Atomistic will reduce or cease its
operations according to such plan.

 

(c)            If
Atomistic terminates the Granted License under Section 5.4 then any sublicenses granted by Vuzix in connection with the exercise
of Vuzix’s right to have made, have developed and have created derivative works will automatically and immediately terminate.

 

5.6            Survival.
Termination or expiration will not relieve Vuzix or Atomistic from any obligations accrued as of the date of such termination or expiration.
The rights and obligations of Vuzix and Atomistic under Sections 3, 6.4, 7, 8, 9, 10 and 11, will survive termination or expiration of
this Agreement. Upon expiration or termination of this Agreement by Atomistic, the Granted License will immediately terminate. The Granted
License will survive termination by Vuzix under Section 5.3.

 

6.            Warranties,
Representations and Covenants.

 

6.1            Representations
and Warranties of the Parties. Each of the Parties severally and only with regard to themselves (for only this Section 6.1 each
a “Warrantor”) represents, warrants and covenants that:

 

(a)            Authority.
Such Warrantor possesses all right, title, interest, and authority necessary to enter into this Agreement, perform its obligations hereunder
and grant the rights embodied herein and that it is not aware of any legal impediment that would inhibit its ability to perform its obligations
under this Agreement.

 

(b)            No
Conflicts. That the execution, delivery, and performance of this Agreement by such Warrantor does not: (i) conflict with, or
constitute a breach of, any order, judgment, agreement or instrument to which such Warrantor is a party or is otherwise bound; or (ii) require
the consent of any person or entity (or if such consent is required, such Warrantor warrants that such consent has been sought and granted
prior to the Effective Date).

 

(c)            Anti-Corruption.
That such Warrantor has not and will not:

 

(i)            violate
or violated any Anti-Corruption Laws; and

 

(ii)            directly
or indirectly made or make any offer, payment, promise to pay, or authorize payment, or offer a gift, promise to give, or authorize the
giving of anything of value to any government official or any other person while knowing or having reason to know that all or a portion
of such money, gift or thing of value will be offered, paid or given, directly or indirectly, to any government official, for the purpose
of (1) improperly influencing an act or decision of the government official in his or her official capacity, (2) improperly
inducing the government official to do or omit to do any act in violation of the lawful duty of such official, (3) securing an improper
advantage, or (4) inducing the government official to use their influence to affect or influence any act or decision of a government
or instrumentality, in order to assist that Warrantor or any of its affiliates in obtaining or retaining business. If a Warrantor learns
or comes to have reason to know of any payment or transfer (or any offer or promise to pay or transfer) in connection with this Agreement
that would violate Anti-Corruption Laws, it shall immediately disclose it to the other Warrantors.

 

    	 	Page 8 of 20.
 
	 

     

    

 

6.2            Representations
and Warranties of Atomistic, JS and JW. Each of Atomistic, JS and JW represent, warrant and covenant severally and only with regard
to themselves the following:

 

(a)            Compliance
with Laws. Each of them will comply with all Applicable Laws.

 

(b)            Ownership
of and Right to Use Intellectual Property. There are no third party joint owners and Atomistic owns the entire right, title and interest
in and to the Licensed Patents and Licensed Technology, free of any lien, contractual commitment or other encumbrance; and that no licenses
have been issued by Atomistic, Atomistic UK, JS or JW to any other party to permit any third-party to make, have made, use, sell, offer
to sell or import products containing the Licensed Patents, Licensed Technology or any Technology in the Field.

 

(c)            No
Claims. There have been no claims made against Atomistic, Atomistic UK, JS or JW asserting the invalidity, unenforceability, abuse
or misuse of any of the Licensed Technology and Licensed Patents, and, to their knowledge, no grounds for any such claims exist. Neither
Atomistic nor Atomistic UK, nor JS nor JW has made any claim of any violation or infringement or misappropriation by others of Atomistic’s
rights in the Licensed Technology, or the Licensed Technology or Licensed Patents. Neither Atomistic nor Atomistic UK, nor JS nor JW has
received any written notice that any of them is in conflict with or infringing upon the asserted rights of others in connection with the
Licensed Technology, or the Licensed Technology or Licensed Patents.

 

(d)            Third
Party Intellectual Property. To the best of its knowledge, there are no patent or other Intellectual Property Rights owned or controlled
by any third party that would prevent Vuzix from making, using, selling, offering for sale or importing the Licensed Products pursuant
to this Agreement.

 

(e)            No
Conflicting Licenses. No licenses, non-assertions or covenants not to sue under the Licensed Technology or Licensed Patents, and no
rights to make, have made, use, sell, offer for sale, promote or import products containing the Licensed Technology or Licensed Patents,
have been or will be granted by any of them during the Term of this Agreement and as long as the Granted License has not been terminated
under Section 5.4.

 

(f)            No
Receipt of Government Support. No research support was received from any government body relating to the research or development of
the Licensed Technology or Licensed Patents.

 

6.3            Representations
and Warranties of Atomistic. Atomistic represents and warrants the following:

 

(a)            Written
Assignments. All employees, independent contractors, (including JS and JW) of Atomistic and Atomistic UK have or will execute and
UK Atomistic has executed written assignments expressly assigning to Atomistic all right, title and interest to any and all intellectual
property in the Field.

 

    	 	Page 9 of 20.
 
	 

     

    

 

(b)            Government
Official. Unless disclosed to Vuzix in a separate written statement, none of its employees, directors, officers or principals is a
government official with jurisdiction. Atomistic shall notify Vuzix in writing within ten (10) days if at any time during the term
of this Agreement any of its employees, directors, officers or principals is named, appointed, or otherwise becomes a government official.

 

6.4            Disclaimer.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS SECTION 6 (WARRANTIES), EACH OF ATOMISTIC, JS, JW AND VUZIX MAKE NO WARRANTIES, EXPRESS, IMPLIED,
STATUTORY OR OTHERWISE, AND SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT
AND TITLE.

 

6.5            Covenants.

 

(a)            Restrictions.
During the Term of this Agreement, as long as the Granted License has not been terminated under Section 5.2 or Section 5.4 and
except for such use as is required for Atomistic to perform its obligations under this Agreement, Atomistic, JS and JW will not directly
or indirectly:

 

(i)            provide
research, development or other services to any Person in the Field;

 

(ii)            engage
in research and development in the Field other than (1) in connection with this Agreement or (2) in and through Atomistic and
Atomistic UK;

 

(iii)            grant
to any Person any license, covenant not to sue, non-assertion covenant or other right to or under any Licensed Technology, any Licensed
Patent or Technology in the Field;

 

(iv)            [**]

 

(v)            sell,
assign or transfer to any Person Licensed Technology, any Licensed Patent or Technology in the Field; and

 

(vi)            make,
have made, sell or offer any product, component or subassembly composed of or including any Licensed Technology and/or which would infringe
the Intellectual Property Rights in the Field of Atomistic.

 

(b)            Invention
Assignments. Atomistic will have all former, existing, and new employees, independent contractors, including JS and JW, execute written
assignments expressly assigning to Atomistic all right, title and interest to any and all Intellectual Property Rights that are (i) encompassed
by the Licensed Technology and Licensed Patents and (ii) conceived, developed, invented, created, or reduced to practice in the Field
during the term of their employment or relationship with Atomistic.

 

(c)            Use
of Third-Party Intellectual Property Rights. Atomistic and Atomistic UK shall not knowingly cause their respective employees and contractors
to include, embed or incorporate into any Technology developed or licensed under this Agreement any Intellectual Property Rights owned
or controlled by any third-party, including any open source technology, without Vuzix’s prior consent.

 

7.            Patent
Preparation, Filing, Prosecution, Maintenance, Marking and Indexing.

 

    	 	Page 10 of 20.
 
	 

     

    

 

7.1            Responsibility.
Atomistic is responsible for preparing, filing, prosecuting, and maintaining the Licensed Patents, including any interferences, oppositions,
reissues or reexaminations (all such actions collectively, “Prosecution” or to “Prosecute”). Atomistic
will provide Vuzix with any Prosecution-related filings at least 15 days in advance of filing, and keep Vuzix apprised of the status of
Licensed Patents and Prosecution matters. Atomistic will prepare a patent prosecution plan and strategy with respect to Technology in
the Field, which plan it will update and provide to Vuzix prior to filing any applications. If Vuzix desires for Atomistic to Prosecute
corresponding foreign counterpart(s) of any Licensed Patent in any jurisdiction(s) in which Atomistic has not filed or has decided
not to file such corresponding foreign counterpart(s), Atomistic will Prosecute the foreign counterpart(s) of the corresponding Licensed
Patent in the jurisdiction(s) requested by Vuzix if, and only if, Vuzix pays Atomistic the out-of-pocket costs and expenses for Prosecuting
the foreign counterpart(s) in such jurisdictions.

 

7.2            Abandonment.
If Atomistic desires to abandon any patent or patent application that is part of the Licensed Patents (an “Abandoned Patent”),
it will provide reasonable written notice to Vuzix and provide Vuzix the opportunity, at Vuzix’s expense, to assume responsibility
for preparing, filing, prosecuting, and maintaining such Abandoned Patent, and, in such case, Atomistic will assign all right, title and
interest in and to such Abandoned Patent to Vuzix.

 

7.3            Cooperation.
Vuzix and Atomistic will cooperate in preparing, filing, prosecuting, and maintaining any patent applications and patents (including Jointly
Owned Improvements) developed jointly by Vuzix and Atomistic during the Term of this Agreement.

 

7.4            Patent
Prosecution and Maintenance Costs. Atomistic will pay for all costs associated with procuring and maintaining any Licensed Patent
other than those costs in Section 7.3, which Vuzix shall bear, and as contemplated by the last sentence of Section 7.1.

 

8.            Infringement
of Intellectual Property. Unless and until the Granted License is terminated:

 

8.1            Notice;
Enforcement Actions. If Atomistic becomes aware of any claim for infringement or threatened infringement of any of the Licensed Patents,
then Atomistic will give written notice to Vuzix within thirty (30) days of becoming aware of such infringement or threat. Vuzix will
have the right, but not the obligation, at its expense to request that Atomistic bring an enforcement action and take any other reasonable
steps to enforce the Licensed Patents, which steps may include the negotiation of appropriate settlements and cross-licenses (which cross-licenses
will be subject to the terms of this Agreement as a sub-license). Atomistic will have the right to approve any settlement, cross-license,
or similar arrangement, such approval not to be unreasonably withheld or delayed. In deciding whether or not to bring an action or take
other steps to defend, Vuzix will be entitled to consider strategic and financial factors that are critical to Vuzix’s business.
Atomistic hereby agrees to be joined as a party to any such action. Atomistic may retain its own counsel at its own expense or may elect
to be represented in the enforcement action by Vuzix’s counsel. If Vuzix does not initiate a response to any infringement claim
within ninety (90) days after it has received written notice thereof, Atomistic may request that Vuzix commence an infringement action
or other appropriate action or response. If Vuzix declines to do so or fails to respond to Atomistic’s request within sixty (60)
days after receipt thereof, then Atomistic will have the right to undertake such action itself at its own expense. Vuzix will have the
right to approve any settlement, cross-license, or similar arrangement, such approval not to be unreasonably withheld or delayed.

 

8.2            Distribution
of Amounts Paid. In any legal proceeding requested to be brought by Vuzix and funded solely by Vuzix, Vuzix will retain [**] of any
proceeds and Vuzix will pay Atomistic [**] of any amounts recovered as a result of the proceeding. If a proceeding is brought by Atomistic
and funded solely by Atomistic and the Granted License has not been terminated, Atomistic will retain [**] of any

    	 	Page 11 of 20.
 
	 

     

    

proceeds and Atomistic
will pay Vuzix [**] of any amounts recovered as a result of the proceeding. Any direct costs borne by either Vuzix or Atomistic in bringing
an action will be allocated between to Vuzix and Atomistic in proportion to their share of the recovery under this Section 8.2.

 

9.            Indemnification.

 

9.1            Atomistic
Indemnification.

 

(a)            Indemnity.
Atomistic will indemnify, defend and hold harmless Vuzix, its Affiliates, and their directors, officers, agents and employees (collectively,
the “Vuzix Indemnified Parties”) from and against all claims, demands, losses, liabilities, damages, costs and expenses
(including reasonable attorneys’ fees and any costs of settlement) incurred by the Vuzix Indemnified Parties resulting from or arising
in connection with any claim, suit, action or proceeding brought by a third party (a “Third Party Claim”) brought against
any such Vuzix Indemnified Party based on:

 

(i)            a
breach of any covenants, representations or warranties made by Atomistic hereunder;

 

(ii)            any
act or omission constituting recklessness, gross negligence or willful misconduct on the part of Atomistic.

 

(b)            Limitations
on Atomistic Indemnification. Atomistic will have no obligation to indemnify, defend or hold harmless the Vuzix Indemnified Parties
in connection with any Third Party Claim to the extent such Third Party Claim is covered by Vuzix’s obligations under Section 9.2,
or arises from: (i) a Vuzix Indemnified Party’s breach of any of Vuzix’s covenants, obligations, agreements, representations
or warranties hereunder; or (ii) any act or omission constituting recklessness, negligence or willful misconduct on the part of any
of the Vuzix Indemnified Parties.

 

9.2            Vuzix
Indemnification.

 

(a)            Indemnity.
Vuzix will indemnify, defend and hold harmless Atomistic, its Affiliates, and their directors, officers, agents and employees (collectively,
the “Atomistic Indemnified Parties”) from and against all claims, demands, losses, liabilities, damages, costs, and
expenses (including reasonable attorneys’ fees and any costs of settlement) incurred by the Atomistic Indemnified Parties resulting
from or arising in connection with a Third Party Claim brought against any such Atomistic Indemnified Party based on:

 

(i)            a
breach of any of any covenants, representations or warranties made by Vuzix hereunder;

 

(ii)            any
act or omission constituting recklessness, gross negligence or willful misconduct on the part of Vuzix.

 

(b)            Limitations
on Vuzix Indemnification. Vuzix will have no obligation to indemnify, defend or hold harmless the Atomistic Indemnified Parties in
connection with any Third Party Claim to the extent such Third Party Claim is covered by Atomistic’s obligations under Section 9.1,
or arises from: (i) an Atomistic Indemnified Party’s breach of any of Atomistic’s covenants, obligations, agreements,
representations or warranties hereunder; or (ii) any act or omission constituting recklessness, gross negligence or willful misconduct
on the part of any of the Atomistic Indemnified Parties.

 

9.3            Indemnification
Procedure.

    	 	Page 12 of 20.
 
	 

     

    

 

 

 

(a)            Notification
and Cooperation. The party seeking indemnification hereunder (the “Indemnified Party”) will: (i) promptly
notify in writing the party obligated to indemnify (the “Indemnifying Party”) of any claim, action or proceeding of
a third party for which the Indemnified Party seeks indemnification; and (ii) cooperate fully with the Indemnifying Party and its
legal representatives in the investigation of any such claim, action or proceeding. The Indemnified Party’s failure to comply with
its obligations under this Section 9.3 will not constitute a breach of this Agreement nor relieve the Indemnifying Party of its indemnification
obligations hereunder, except to the extent, if any, that the Indemnifying Party’s defense or settlement of the affected claim,
action or proceeding was actually and materially impaired thereby.

 

(b)            Defense.
The Indemnifying Party will conduct, at its own expense, the defense of any and all such claims, charges, suits or other actions by a
third party, and the Indemnified Party may, at its own expense, assist in such defense if it so chooses, provided that the Indemnifying
Party will control such defense and all negotiations relative to the settlement of any such claim. Notwithstanding the foregoing, either
party may elect to assume the defense of any Third Party Claim against, as the case may be, the Atomistic Indemnified Parties or the Vuzix
Indemnified Parties and such assuming party will reimburse the other party for all reasonable expenses (including reasonable attorneys’
fees which may include, without limitation, an allocation for in-house counsel) as such expenses are incurred, relating to the defense
of such Third Party Claim. Neither party will settle or admit liability with respect to any such claims, charges, suits or other actions
which could result in liability to the other party without the prior written consent of the other party, which consent will not be unreasonably
withheld or delayed.

 

10.            Limitation
of Liability.

 

10.1            NOTWITHSTANDING
ANYTHING IN THIS AGREEMENT TO THE CONTRARY, NO PARTY, NOR THEIR RESPECTIVE AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS, WILL
HAVE ANY LIABILITY TO THE OTHER FOR ANY SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES SUCH AS LOSS OF OPPORTUNITY,
USE, REVENUE OR PROFIT, IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, EVEN IF SUCH DAMAGES WERE FORESEEABLE, EXCEPT FOR ANY
DAMAGES ARISING FROM BREACH OF A PARTY’S CONFIDENTIALITY OBLIGATIONS UNDER THIS AGREEMENT AND EXCEPT FOR ANY DAMAGES ARISING FROM
BREACH OF A PARTY’S INTELLECTUAL PROPERTY RIGHTS.

 

10.2            No
party excludes or limits their liability in respect of the death of, or personal injury caused to, any person by negligence or for fraudulent
misrepresentation by either party or any other liability which by law neither party can limit or exclude.

 

11.            Confidentiality.

 

11.1            Nondisclosure
and Nonuse Obligations. During the Term of this Agreement, and thereafter following expiration or termination hereof, each party will
maintain all Confidential Information of the other parties disclosed to it on or after June 4, 2021 in trust and confidence and will
not disclose any Confidential Information of the other parties to any third party or use any Confidential Information of the other parties
except to the extent required to enjoy its rights or comply with its obligations under this Agreement. Confidential Information will be
disclosed only to employees, agents, Affiliates, and consultants who have a need for such information and who are bound by obligations
of nondisclosure and non-use at least as restrictive as those set forth herein. Each party will be responsible for any disclosure or use
of the Confidential Information by such employees, agents, Affiliates, and consultants. Each party will protect the other parties’
Confidential Information using not less than the same standard of care with which it treats its own Confidential Information, but at all
times will use at least reasonable care.

 

    	 	Page 13 of 20.
 
	 

     

    

 

11.2            Exceptions.
Confidential Information will not include any information which:

 

(a)            is
now, or lawfully becomes, generally known or available to the public through no fault of the recipient;

 

(b)            is
known by the receiving party at the time of receiving such information without there having been a breach of any obligations of confidentiality
by any person;

 

(c)            is
hereafter lawfully furnished to the receiving party by a third party, as a matter of right and without restriction on disclosure;

 

(d)            is
independently developed by the receiving party without any breach of this Section 11 as evidenced by its written records; or

 

(e)            is
the subject of a written permission to disclose provided by the disclosing party.

 

11.3            Authorized
Disclosure. Notwithstanding any other provision of this Agreement, each party may disclose Confidential Information of another party
if such disclosure is required: (a) by an order of a court or other governmental body, or any political subdivision thereof or arbitral
panel with jurisdiction over the disclosing party; or (b) by Applicable Laws or regulation (including, without limitation, to comply
with any applicable stock exchange disclosure requirements), but only to the extent that any such disclosure is necessary. With respect
to any order of a court or other governmental body, the disclosing party will first have given written notice to the other party hereto,
will have made a reasonable effort to obtain a protective order requiring that the Confidential Information so disclosed be used only
for the purposes for which the order was issued and will cooperate with the other party to minimize the scope and content of such disclosure.
With respect to disclosure required by Applicable Laws or regulations (including, without limitation, any applicable stock exchange disclosure
requirements), the disclosing party will first give written notice to the other party hereto and will, to the extent practicable, allow
the other party sufficient time to comment on the content of such disclosure and will consult with the other party with respect to the
comments of such other party.

 

11.4            Obligations
at End of Term. Each party agrees, at the request of any other party, upon the expiration or termination of this Agreement under Section 5.2
or Section 5.3, to destroy all originals and copies of the other party’s Confidential Information and to certify in writing
such destruction to the other party; provided, however (a) that the receiving party may keep one copy of the other party’s
Confidential Information in a secure location, solely for purposes of enforcing and determining such party’s rights and obligations
under this Agreement and (b) in the event of a termination under Section 5.3 Vuzix may retain the Company’s Confidential
Information to exercise its rights under the Granted License.

 

11.5            Injunctive
Relief. The Parties agree that any breach of the restrictions contained in Section 11 may cause irreparable harm to the non-breaching
party entitling the non-breaching party to seek injunctive or other preliminary relief in addition to all other legal remedies.

 

12.            Publicity.
All publicity, press releases and other announcements regarding this Agreement or the transactions contemplated hereby will be reviewed
in advance by, and subject to the written approval of the Companies; provided, however, that either Vuzix or Atomistic may, without the
written consent of the other, disclose the terms of this Agreement insofar as required to comply with Applicable Laws (including, without
limitation, any applicable stock exchange disclosure requirements). The disclosing party will consult with the other with respect to the
comments of the other and the Companies will cooperate to minimize the scope and content of such disclosure.

 

    	 	Page 14 of 20.
 
	 

     

    

 

13.            Miscellaneous.

 

13.1            Bankruptcy.
The Granted License for all purposes of Section 365(n) of Title XI of the United States Code (“Title XI”),
are licenses of rights to intellectual property as defined in Title XI. During the Term of this Agreement, Atomistic will create and maintain
current copies to the extent practicable of all such intellectual property. If a bankruptcy proceeding is commenced by or against Atomistic
under Title XI, Vuzix will be entitled to a copy of any and all such intellectual property, and the same, if not in the possession of
Vuzix, will be promptly delivered to it (a) upon Vuzix’s written request following the commencement of such bankruptcy proceeding,
unless Atomistic, or its trustee or receiver, elects within thirty (30) days to continue to perform all of its obligations under this
Agreement, or (b) if not delivered as provided under Section 13.1(a) above, upon Vuzix’s request following the rejection
of this Agreement by or on behalf of Atomistic. If Vuzix has taken possession of all applicable embodiments of the intellectual property
of Atomistic pursuant to this Section 13.1 and the trustee in bankruptcy of Atomistic does not reject this Agreement, Vuzix will
return such embodiments upon request. If Atomistic seeks or involuntarily is placed under Title XI and the trustee rejects this Agreement
as contemplated under 11 U.S.C. 365(n)(1), Vuzix hereby elects pursuant to Section 365(n) to retain all rights granted to Vuzix
under this Agreement to the extent permitted by law.

 

13.2            Notices.
All notices required or permitted hereunder will be given in writing to the following addresses and will be deemed given (a) when
received if sent by an internationally recognized express courier service, or (b) on the date sent by email if sent during normal
business hours of the recipient or on the next business day if sent outside of normal business hours of the recipient:

 

To Atomistic:          Atomistic
SAS

 

3 Boulevard de Belfort

 

59000 Lille

 

France

 

Attn: Jonathan Sachs

 

Email: [**]

 

To JS:               Jonathan
Sachs

 

[**]

 

To JW:               Jerry
Woodall

 

[**]

 

To Vuzix:          Vuzix
Corporation

 

25 Hendrix Road

 

West Henrietta,
New York 14586

 

Attn: Legal Department

 

Email: legal@vuzix.com

 

Copy to:          Harter
Secrest & Emery LLP

 

1600 Bausch & Lomb
Place

 

Rochester, NY 14604

 

Attn: Thomas R.
Anderson, Esq.

 

Email: tanderson@hselaw.com

 

13.3            Captions
and Section References. The titles, headings or captions in this Agreement do not define, limit, extend, explain or describe
the scope or extent of this Agreement or any of its terms or conditions and therefore will not be considered in the interpretations, construction
or application of this Agreement.

 

    	 	Page 15 of 20.
 
	 

     

    

 

13.4            Severability.
If any term or provision of this Agreement will be found to be invalid, illegal or otherwise unenforceable, such finding will not affect
the other terms or provisions of this Agreement, or the whole of this Agreement, but such term or provision will be deemed modified to
the extent necessary to render such term or provision enforceable, and the rights and obligations of the Parties will be construed and
enforced accordingly, preserving to the fullest permissible extent the intent and agreements of the Parties set forth in this Agreement.

 

13.5            Amendment.
No amendment, change or modification of any of the terms, provisions or conditions of this Agreement will be effective unless made in
a writing that expressly references this Agreement and is signed on behalf of the Parties hereto by their duly authorized representatives.

 

13.6            Waiver.
No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise, in any one or more instances, will be
deemed to be or construed as a further or continuing waiver of any such or other term, provision or condition of this Agreement.

 

13.7            Force
Majeure. No party will be liable hereunder to the other party nor will be in breach for failure to perform its obligations caused
by circumstances beyond the control of the party, including, but not limited to: acts of nature; fires; earthquakes; floods; riots; wars;
civil disturbances; sabotage; accidents; shortages or government actions. In the case of any such event, the affected party will promptly
notify the other parties, and will keep the other parties informed of the event in writing specifying the extent to which its performance
will likely be affected. The party affected will exert reasonable diligent efforts to eliminate, cure or overcome any such cause and resume
performance as soon as practicable.

 

13.8            Benefits
and Binding Nature of Agreement. This Agreement will be binding upon and will inure to the benefit of the Parties hereto and their
respective successors and assigns permitted under this Agreement.

 

13.9            Assignment;
Change in Control. The rights under this Agreement may not be assigned by the Companies (the “Assigning Party”)
without the written consent of the other except (a) to any Affiliate of the Assigning Party or (b) to any party which acquires
substantially all of the assets and business of the Assigning Party to which this Agreement pertains; provided that, in the event of any
such permitted assignment, the Assigning Party will remain primarily responsible for all of its obligations and agreements set forth herein,
notwithstanding such assignment and that, in the case of an acquisition of a controlling interest in Atomistic, the acquirer of such a
controlling interest will assume responsibility for fulfilling Atomistic’s obligations under this Agreement.

 

13.10            Entire
Agreement. This Agreement sets forth the entire agreement between the Parties hereto pertaining to the subject matter hereof and supersedes
and terminates all previous agreements, memoranda or letters of proposal or intent between the Parties hereto in connection with the subject
matter hereof entered into prior to the Effective Date.

 

13.11            Governing
Law and Forum. This Agreement and all claims related to it, its execution or the performance of the Parties under it, will be construed
and governed in all respects according to the laws of the State of New York. The Parties agree that all actions or proceedings arising
in connection with this Agreement will be tried and litigated exclusively in the courts located in the Western District of New York. This
choice of venue is intended by the Parties to be mandatory and not permissive in nature, and to preclude the possibility of litigation
between the Parties with respect to, or arising out of, this Agreement in any jurisdiction other than that specified in this Section 13.11.
Each party consents to the jurisdiction of such courts and waives any right it may have to challenge the jurisdiction of such court under
the law of any jurisdiction, including asserting the doctrine of forum non-conveniens or similar doctrine under any law, or to object
to venue with respect to any proceeding brought in accordance with this Section 13.11 on any grounds or any law.

 

    	 	Page 16 of 20.
 
	 

     

    

 

13.12            Dispute
Resolution. If any dispute arises between the Parties with respect to the interpretation or breach of this Agreement, any party may
notify the others of the dispute in writing and the Parties will attempt to resolve the dispute through discussions. If such Parties are
unable to resolve the dispute within thirty (30) days after the date written notice of the dispute is delivered, any party may seek such
other remedy, at law or in equity, as it may deem necessary or appropriate.

 

13.13            Counterparts.
This Agreement may be executed in counterparts and signed electronically by means of a reliable identification process implemented by
DocuSign® (www.docusign.com). For purposes hereof, a facsimile or scanned copy of this Agreement, including the signature page hereto,
will be deemed to be an original. Notwithstanding the foregoing, the Parties will deliver original execution copies of this Agreement
to one another as soon as practicable following execution thereof.

 

13.14            Duty
to Comply. The Parties shall in the performance of this Agreement comply with all Applicable Laws, executive orders, regulations,
ordinances, rules, proclamations, demands, and requisitions of all applicable state, local, national, or other governmental authority
which may now or hereafter govern performance hereunder including, without limitation, all laws, executive orders, regulations, ordinances,
rules, and proclamations.

 

13.15            U.
S. Export Control. Neither Vuzix or Atomistic will use, distribute, transfer or transmit any Licensed Products or technical information
(even if incorporated into other products) provided under this Agreement except in compliance with relevant export laws and regulations
(the “Export Laws”). Neither Vuzix or Atomistic will, directly or indirectly, export or re-export the Licensed Products
to any country, or to a national of any country that is in the then current list of prohibited countries specified in the applicable Export
Laws. The obligations stated above in this clause will survive the expiration, cancellation or termination of this Agreement or any other
related agreement.

 

13.16            Conflict
Minerals. Atomistic agrees to comply with and follow policies relating to Conflict Minerals, in compliance with the Dodd-Frank Wall
Street Reform and Consumer Protection Act. In the event these policies require disclosure of party’s business relationship for compliance,
then any applicable confidentiality obligations set forth in this or any other agreement are expressly waived with respect to such disclosures.

 

13.17            Language.
All correspondence between the Parties shall be conducted in English.

 

13.18            Independent
Manufacturing and Design. Atomistic hereby acknowledges that Vuzix engages in independent and concurrent manufacturing and design
relating to electronics, optics, displays, computers, software and related matters. This Agreement and any disclosures hereunder shall
not limit such manufacturing, designing, licensing and selling activities involving technology or ideas similar in nature to that disclosed
by Atomistic, Atomistic UK, JS and JW hereunder or prevent Vuzix from undertaking similar efforts or discussions with third parties, including
competitors of Atomistic, provided that Vuzix complies with the obligations of confidentiality in this Agreement and does not misappropriate
the Confidential Information of Atomistic or any of its subsudaries. Except as specifically set forth in Section 6.5(a) and
otherwise under this Agreement, this Agreement and any disclosures hereunder shall not limit the manufacturing, designing, licensing and
selling activities of Atomistic or Atomistic UK involving technology or ideas similar in nature to that disclosed by Vuzix hereunder or
prevent Atomistic or Atomistic UK from undertaking similar efforts or discussions with third parties, including competitors of Vuzix,
provided that Atomistic or Atomistic UK comply with the obligations of exclusivity and confidentiality in this Agreement and do not misappropriate
the Confidential Information of Vuzix.

 

    	 	Page 17 of 20.
 
	 

     

    

 

13.19            Independent
Contractors. The Companies are independent contractors. Nothing in this Agreement is intended to establish or authorize either party
as an agent, partner, legal representative, joint venture, franchisee, employee, or servant of the other for any purpose. Neither of the
Companies nor any of their employees are entitled to participate in any of the other’s benefit plans, including but not limited
to stock option plans, stock participation plans, profit sharing, retirement or pension plan contributions or savings or medical plans.
Neither of the Companies will make any contract, agreement, warranty, or representation on behalf of the other, or incur any debt or other
obligation in the name of the other, or act in any manner that has the effect of making one of the Companies the apparent agent of the
other. Neither of the Companies will assume liability for, or be deemed liable as a result of, any such action by the other. Neither Atomistic
or Vuzix will be liable by reason of any act or omission of the other in the conduct of its business or for any resulting claim or judgment.

 

13.20            No
Benefit to Others. The provisions of this Agreement are for the sole benefit of the Parties and their successors and permitted assigns,
and they shall not be construed as conferring any rights in any other persons except as otherwise provided in this Agreement.

 

[Signatures on next page.]

 

    	 	Page 18 of 20.
 
	 

     

    

 

IN
WITNESS WHEREOF, the Companies, and as limited for JS and JW to Sections 1, 6.1, 6.2, 6.5(a), 10, 11 and 13 as listed in the preamble
and on this signature page, have caused this Agreement to be executed as of the Effective Date.

 

 

	 	Atomistic SAS
	 	 
	 	 
	 	By: 	 /s/ Jonathan Sachs 
	 	 
	 	Name: Jonathan Sachs
	 	 
	 	Title:  President
	 	 
	 	 
	 	/s/ Jonathan Sachs
	 	Jonathan Sachs only with regard to Sections 1, 6.1, 6.2, 6.5(a), 10, 11 and 13.
	 	 
	 	 
	 	/s/ Jerry Woodall
	 	Jerry Woodall only with regard to Sections 1, 6.1, 6.2, 6.5(a), 10, 11 and 13.
	 	 
	 	 
	 	Vuzix Corporation
	 	 
	 	By:	 /s/ Paul Travers
	 	 
	 	Name: Paul Travers
	 	 
	 	Title:   President & CEO

 

    	 	Page 19 of 20.
 
	 

     

    

 

APPENDIX A

 

Royalty Provisions

 

    	 	Page 20 of 20.

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