Document:

Exhibit 10.2

 

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.

 

STOCK PURCHASE AGREEMENT

 

THIS
STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of the Effective Date (as defined below) between and among
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 (the “Company”) and each of Jonathan Sachs (“JS”) and
Jerry Woodall (“JW”) (each a “Founder” and together the “Founders”). Vuzix,
the Company and each Founder are referred to herein individually as a “Party” and collectively as “Parties.”

 

The parties hereby agree
as follows:

 

1.            Definitions.

 

1.1            Defined
Terms Used in this Agreement. In addition to the terms defined elsewhere in this Agreement the following terms used in this Agreement
will be construed to have the meanings set forth or referenced below:

 

(a)            “Affiliate”
means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common
control with such Person, including, without limitation, any general partner, managing member, officer, director or trustee of such Person,
or any venture capital fund or registered investment company now or hereafter existing that is controlled by one or more general partners,
managing members or investment advisers of, or shares the same management company or investment adviser with, such Person.

 

(b)            “Atomistic
UK” means Atomistic Ltd. (Company Number 13607578), a private limited company formed under the laws of England and Wales.

 

(c)            “Backplane”
has the meaning ascribed to it in the License Agreement.

 

(d)            “Change
of Control Transaction” means any of the following or combination of the following in one or a series of related transactions:
(i) the sale, lease, transfer or other disposition of all or substantially all of Vuzix’s assets in one transaction or a series
of related transactions; (ii) the merger or consolidation of Vuzix with or into another entity (except a merger or consolidation
in which the holders of capital stock of Vuzix immediately prior to such merger or consolidation continue to hold at least 50% of the
voting power of the capital stock of Vuzix or the surviving or acquiring entity); (iii) the transfer (whether by merger, consolidation
or otherwise), in one transaction or a series of related transactions, to a Person or group of affiliated Persons (other than an underwriter
of Vuzix’s securities), of Vuzix’s securities if, after such transfer, such Person or group of affiliated Persons would hold
50% or more of the outstanding voting stock of Vuzix (or the surviving or acquiring entity); provided, however, that a
transaction shall not constitute a Change of Control Transaction if its sole purpose is to change the state of Vuzix’s incorporation
or to create a holding company that will be owned in substantially the same proportions by the Persons who held Vuzix’s securities
immediately prior to such transaction.

 

(e)            “Code”
means the Internal Revenue Code of 1986, as amended.

 

(f)            “Company
Common Stock” means the ordinary stock, 0.01 € par value per share, of the Company.

 

    	 	Page 1 of 20.
 
	 

     

    

 

(g)            “Company
Intellectual Property” means all patents, patent applications, registered and unregistered trademarks, trademark applications,
registered and unregistered service marks, service mark applications, tradenames, copyrights, trade secrets, domain names, mask works,
information and proprietary rights and processes, similar or other intellectual property rights, subject matter of any of the foregoing,
tangible embodiments of any of the foregoing, licenses in, to and under any of the foregoing, and any and all such cases as are necessary
to the Company in the conduct of the Company’s business as now conducted and as presently proposed to be conducted, including with
respect to the License Agreement.

  

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

 

(i)            “Field”
has the meaning ascribed to it in the License Agreement.

 

(j)            “Foundation
Materials” means the following:

 

[**]

 

(k)            “Granted
License” has the meaning ascribed to it in the License Agreement.

 

(l)            “Key
Employee” means each Founder and any executive-level employee (including division director and vice president-level positions)
as well as any employee or consultant who either alone or in concert with others develops, invents, programs or designs any Company Intellectual
Property.

 

(m)            “License
Agreement” means that certain license agreement that was executed and became binding upon the Parties as of the Effective Date.

 

(n)            “uLED”
means a micro light emitting diode developed in the Field by the Company.

 

(o)            “Milestone”
means the occurrence of any of the following:

 

		1.	[**]

 

		2.	[**]

 

		3.	[**]

 

		4.	[**]

 

		5.	[**]

 

		6.	[**]

 

(p)            “Person”
means any individual, corporation, partnership, trust, limited liability company, association or other entity.

 

(q)            “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

    	 	Page 2 of 20.
 
	 

     

    

 

(r)            “Series A
Preferred Stock” means the series A preferred stock 0.01 € par value per share, of the Company.

8.

 

(s)            “Series B
Preferred Stock” means the Series B1 Preferred Stock and Series B2 Preferred Stock.

 

(t)            “Series B1
Preferred Stock” means the series B1 preferred stock 0.01 € par value per share, of the Company.

 

(u)            “Series B2
Preferred Stock” means the series B2 preferred stock 0.01 € par value per share, of the Company.

 

(v)            “Shares”
means the shares of Company Common Stock, Series A Preferred Stock and Series B Preferred Stock.

 

(w)            “Shareholders’
Agreement” means that certain shareholders’ agreement, that was executed and became binding upon the Parties as of the
Effective Date, in the form of Exhibit A attached to this Agreement.

 

(x)            “Transaction
Agreements” means this Agreement, the Shareholders’ Agreement, the License Agreement, the Restated Certificate (as defined
below) and any other agreements, instruments or documents entered into in connection with this Agreement.

 

(y)            “Vuzix
Common Stock” means the common stock registered under the Securities Act, $0.001 par value per share, of Vuzix.

 

2.            Purchase
and Sale of Series B Preferred Stock.

 

2.1            Sale
of Series B Preferred Stock.

 

(a)            Foundation
Sales and Purchase. Subject to the terms and conditions of this Agreement, following presentation to the Company’s Board of
Directors (as defined in Section 6.4 below) of the Foundation Materials, on the eleventh (11th) month anniversary of
the Effective Date:

 

		1.	Vuzix will (A) pay $2,000,000 to [**]
                                            assigning to Vuzix 2,000 shares of Series B [**]; and (B) pay $500,000 [**] assigning
                                            to Vuzix 500 shares of Series B [**]

 

		2.	Vuzix will (A) issue 368,000 shares
                                            of Vuzix Common Stock to [**] assigning to Vuzix 4,784 shares of Series B [**]; and
                                            (B) issue 92,000 shares of Vuzix Common Stock [**] assigning to Vuzix 1,196 shares of
                                            Series B [**] provided, however that:

 

		a)	if the 10-day VWAP for
                                            Vuzix Common Stock immediately prior to the date such shares are issued is between $8 and
                                            $13 per share of Vuzix Common Stock, Vuzix will issue and/or pay [**] shares of Vuzix
                                            Common Stock (based on such 10-day VWAP for Vuzix Common Stock) and/or cash that total $4,784,000
                                            [**] and $1,196,000 [**]  such proportion of shares of Vuzix Common Stock and/or
                                            cash as determined by Vuzix in its sole discretion; and

 

    	 	Page 3 of 20.
 
	 

     

    

 

		b)	if the 10-day VWAP for Vuzix Common Stock
                                            immediately prior to the date such shares are issued is less than $8 per share of Vuzix Common
                                            Stock, Vuzix will issue and/or pay the value of shares of Vuzix Common Stock that total 598,000
                                            shares of Vuzix Common Stock multiplied by 10-day VWAP for Vuzix Common Stock at the time
                                            of issuance [**] 149,500 shares multiplied by 10-day VWAP for Vuzix Common Stock at
                                            the time of issuance [**] in such proportion of shares of Vuzix Common Stock and/or
                                            cash as determined by Vuzix in its sole discretion.

 

(b)            Milestone
Sales and Purchases.

 

		1.	Milestones. For each Milestone that,
                                            in Vuzix’s reasonable judgment, has been achieved Vuzix will (A) issue 172,000
                                            shares of Vuzix Common Stock [**] assigning to Vuzix 2,236 shares of Series B [**] and
                                            (B) issue 43,000 shares of Vuzix Common Stock [**] assigning to Vuzix 559 shares of
                                            Series B [**] provided, however that:

 

		a)	if the 10-day VWAP for Vuzix Common Stock
                                            immediately prior to the date such shares are issued is between $8 and $13 per share of Vuzix
                                            Common Stock, Vuzix will issue and/or pay [**] shares of Vuzix Common Stock (based
                                            on such 10-day VWAP for Vuzix Common Stock) and/or cash that total $2,236,000 [**] and
                                            $559,000 [**] in such proportion of shares of Vuzix Common Stock and/or cash as determined
                                            by Vuzix in its sole discretion.

 

		b)	if the 10-day VWAP for Vuzix Common Stock
                                            immediately prior to the date such shares are issued is less than $8 per share of Vuzix Common
                                            Stock, Vuzix will issue and/or pay the value of shares of Vuzix Common Stock that total 279,500
                                            shares of Vuzix Common Stock multiplied by 10-day VWAP for Vuzix Common Stock at the time
                                            of issuance [**] and 69,875 shares multiplied by 10-day VWAP for Vuzix Common Stock
                                            at the time of issuance [**] in such proportion of shares of Vuzix Common Stock and/or
                                            cash as determined by Vuzix in its sole discretion.

 

Each issuance
or payment by Vuzix and the corresponding transfer of shares [**] under this Section 2.1(b)(1) shall be referred to
as a “Milestone Closing”

 

		2.	Conditions of Milestone Closings.

 

		a)	A Milestone Closing may only occur after
                                            the eleventh (11th) month anniversary of the Effective Date.

 

		b)	A Milestone Closing with respect to a
                                            Milestone only occurs once upon the first achievement and acceptance of such Milestone.

 

    	 	Page 4 of 20.
 
	 

     

    

 

		c)	The order of each Milestone Closing is
                                            at the sole discretion of the Company and may occur at any time and in any sequence independent
                                            of the order enumerated in Section 1(o).

  

		d)	Vuzix may at any time in its sole discretion
                                            elect to accelerate any Milestone Closing by waiving all requirements for the achievement
                                            any remaining Milestone.

 

(c)            Delivery
of Certificates.

 

		1.	As a requirement for the completion of each
                                            purchase and sale of shares of Series B Preferred Stock in Section 2.1(a) and
                                            Section 2.1(b), [**] a share transfer form (ordre de mouvement) duly completed
                                            in favor of Vuzix and a Cerfa tax form no.2759 for registration purposes with the relevant
                                            French tax authorities, and the Company will deliver to Vuzix a copy of the updated share
                                            transfer register (registre de mouvements de titres) and individual shareholders accounts
                                            (comptes individuels d’associés) providing for the transfer of ownership
                                            in the shares of Series B Preferred Stock being purchased by Vuzix [**]

 

		2.	For each purchase and sale of shares of
                                            Series B Preferred Stock in Section 2.1(a) and Section 2.1(b) Vuzix
                                            will deliver [**] certificates representing that number of shares of Vuzix Common Stock issued
                                            hereunder.

 

2.2            Additional
Consideration.

 

(a)            “Valuation
Milestone” shall mean and be achieved if:

 

		1.	within five (5) years after the Effective
                                            Date, Vuzix either (i) engages in a Change of Control Transaction for an implied equity
                                            value of at least US $3,500,000,000 or (ii) attains a market capitalization for its
                                            publicly traded Vuzix Common Stock of at least US $3,500,000,000 (based on a trailing 10-day
                                            VWAP); and

 

		2.	a US based investment banker mutually agreeable
                                            to Vuzix and [**], in connection with such transaction determines that at least fifty percent
                                            (50%) of such implied equity value or market capitalization is directly attributable to the
                                            technology developed by the Company.

 

(b)            If
the Valuation Milestone is achieved prior to the Granted License terminating or the License Agreement terminating or after Vuzix owns
at least 25,250,000 shares of Company Common Stock according to the terms in the Restated Certificate, then:

 

		1.	Vuzix will issue or pay [**] as applicable

 

		a)	on closing of the Change of Control Transaction
                                            contemplated by Section 2.2(a)(1)(i) (and subject to the requirement in Section 2.2(a)(2))
                                            either (i) 15% of the number of shares of Vuzix Common Stock issued [**] under
                                            Section 2.1 subject to adjustment in Section 2.2(b)(2) or (ii) the cash
                                            equivalent represented by such additional shares contemplated by 2.2(b)(1)(a), in each case
                                            in exchange for (A) [**] assigning to Vuzix 3,030 shares of Series B [**];
                                            and (B) [**] assigning to Vuzix 758 shares of Series B [**] or

 

    	 	Page 5 of 20.
 
	 

     

    

  

		b)	within 10 business days in the event contemplated
                                            by Section 2.2(a)(1)(ii) (and subject to the requirement in Section 2.2(a)(2)),
                                            15% of the number of shares of Vuzix Common Stock issued [**] under Section 2.1,
                                            subject to adjustment in Section 2.2(b)(2), in exchange for (A) [**] assigning
                                            to Vuzix 3,030 shares of Series B [**]; and (B) [**] assigning to
                                            Vuzix 758 shares of Series B [**]

 

		2.	If any cash was paid according to Section 2.1
                                            by Vuzix [**], then the number of shares of Vuzix Common Stock issued according to Section 2.1
                                            as used in the calculation for Section 2.2(b)(1) shall be increased by an implied
                                            number of shares determined by dividing the amount of cash paid by Vuzix [**] on any date
                                            by either (a) if the the 10-day VWAP for Vuzix Common Stock used in Section 2.1
                                            was between $8 and $13, then the smaller of such amount per share of Vuzix Common Stock or
                                            the 10-day VWAP for Vuzix Common Stock immediately prior to the occurrence or acceleration
                                            of the Milestone Event or (b) if the 10-day VWAP for Vuzix Common Stock used in Section 2.1
                                            was less than $8 per share, then the smaller of $8 per share of Vuzix Common Stock or the
                                            10-day VWAP for Vuzix Common Stock immediately prior to the occurrence or acceleration of
                                            the Milestone Event.

 

(c)            Delivery
of Certificates.

 

		1.	For the purchase and sale of shares Series B
                                            Preferred Stock in Section 2.2(b) [**] a share transfer form (ordre de mouvement)
                                            duly completed in favor of Vuzix and a Cerfa tax form no.2759 for registration purposes with
                                            the relevant French tax authorities, and the Company will deliver to Vuzix a copy of the
                                            updated share transfer register (registre de mouvements de titres) and individual
                                            shareholders accounts (comptes individuels d’associés) providing for
                                            the transfer of ownership in the Series B Preferred Stock being purchased by Vuzix [**]

 

		2.	For the purchase and sale of Series B
                                            Preferred Stock in Section 2.2(b) Vuzix will deliver [**] certificates representing
                                            that number of shares of Vuzix Common Stock issued hereunder.

 

(d)            Acceleration.
Provided Vuzix owns at least 25,250,000 shares of Company Common Stock then it may at any time thereafter, in its sole discretion, elect
to accelerate the Valuation Milestone contemplated by Section 2.2(a) by waiving all requirements for the achievement of the
Valuation Milestone and issuing the shares of Vuzix Common Stock contemplated by Section 2.2(b).

 

    	 	Page 6 of 20.
 
	 

     

    

 

(e)            No
Multiple Issuances or Payments. The Valuation Milestone may only be achieved once for purposes of the issuance of shares contemplated
by Section 2.2(b) and once the share issuance or payment by Vuzix contemplated by Section 2.2(b) has been made [**]
will have no further rights under this Section 2.2.

 

2.3            Vuzix
Stock Split Adjustment. If Vuzix shall at any time effect a recapitalization, reclassification, stock split or other similar transaction
such that each share of Vuzix Common Stock shall be changed into a larger or smaller number of shares then upon the effective date thereof,
the number of shares of Vuzix Common Stock [**] per Section 2.1 or Section 2.2 [**] shall be increased or decreased in direct
proportion to the increase or decrease in the number of shares of Vuzix Common Stock by reason of such recapitalization, reclassification
or similar transaction, and the $13 and $8 figures stated in Section 2.1 or Section 2.2 shall be proportionally increased or
decreased.

 

2.4            [**]
prior to the achievement of a Milestone [**] will be entitled to receive any consideration due hereunder upon achievement of such a milestone,
even if the milestone is achieved by Vuzix [**]

 

3.            Representations
and Warranties of the Company. The Company hereby represents and warrants to Vuzix on the Effective Date and as of the date of each
Milestone Closing the following matters set forth in this Section 3: Except for Sections 3.2, 3.3, 3.4, 3.5, 3.8(a), 3.11 and 3.17
all references to Company in this Section 3 shall be deemed to include Atomistic UK.

 

3.1            Organization,
Good Standing, Corporate Power and Qualification. The Company is a corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction of its formation and has all requisite corporate power and authority to carry on its business as now
conducted and as presently proposed to be conducted. The Company is duly qualified to transact business and is in good standing in each
jurisdiction in where it is required to so qualify.

 

3.2            Capitalization.
The share capital of the Company consists, immediately prior to the Effective Date, of:

 

		1.	29,038 shares of Company Common Stock were
                                            issued and outstanding. All of the outstanding shares of Company Common Stock have been duly
                                            authorized, are fully paid and nonassessable and were issued in compliance with all applicable
                                            federal and state securities laws.

 

		2.	[**] Series B1 Preferred Stock were
                                            issued and outstanding. The rights, privileges and preferences of the Series B1 Preferred
                                            Stock are as stated in the Restated Certificate.

 

		3.	[**] Series B2 Preferred Stock were
                                            issued and outstanding. The rights, privileges and preferences of the Series B2 Preferred
                                            Stock are as stated in the Restated Certificate.

 

(b)            None
of the Company’s stock purchase agreements or stock option documents contains a provision for acceleration of vesting (or lapse
of a repurchase right) or other changes in the vesting provisions or other terms of such agreement or understanding upon the occurrence
of any event or combination of events. The Company has never adjusted or amended the exercise price of any stock options previously awarded,
whether through amendment, cancellation, replacement grant, repricing, or any other means. Except as set forth in the Shareholders’
Agreement or Restated Certificate, the Company has no obligation (contingent or otherwise) to purchase or redeem any of its capital stock.

 

    	 	Page 7 of 20.
 
	 

     

    

 

3.3            Subsidiaries.
Other than any subsidiary which is wholly-owned by the Company, the Company does not currently own or control, directly or indirectly,
any interest in any other corporation, partnership, trust, joint venture, limited liability company, association, or other business entity.

 

3.4     Authorization•     .
All corporate action required to be taken by the Company’s Board of Directors (as defined in Section 6.4 below) and stockholders
in order to authorize the Company to enter into the Transaction Agreements at the Effective Date has been taken. All action on the part
of the officers of the Company necessary for the execution and delivery of the Transaction Agreements, the performance of all obligations
of the Company under the Transaction Agreements to be performed as of the Effective Date has been taken prior to or on the Effective
Date. The Transaction Agreements, when executed and delivered by the Company, will constitute valid and legally binding obligations of
the Company, enforceable against the Company in accordance with their respective terms except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement
of creditors’ rights generally, or (ii) as limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies.

 

3.5            Valid
Issuance of Shares. The Shares, when issued, sold and delivered in accordance with the terms and for the consideration set forth
in this Agreement, will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions
on transfer under the Transaction Agreements, applicable state and federal securities laws and liens or encumbrances created by or imposed
by a purchaser. The Shares will be issued in compliance with all applicable laws. The Company Common Stock issuable upon conversion of
the shares of Series A Preferred Stock in accordance with the terms of the Restated Certificate, will be validly issued, fully paid
and nonassessable and free of restrictions on transfer other than restrictions on transfer under the Transaction Agreements, applicable
federal and state securities laws and liens or encumbrances created by or imposed by a purchaser. The Company Common Stock issuable upon
conversion of the shares of Series A Preferred Stock will be issued in compliance with all applicable laws.

 

3.6            Governmental
Consents and Filings. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or
filing with, any governmental authority is required on the part of the Company in connection with the consummation of the transactions
contemplated by this Agreement.

 

3.7            Litigation.
As of the Effective Date there is no claim, action, suit, proceeding, arbitration, complaint, charge or investigation pending or to the
Company’s knowledge, currently threatened (i) against the Company or any officer, director or Key Employee of the Company
or (ii) that questions the validity of the Transaction Agreements or the right of the Company to enter into them, or to consummate
the transactions contemplated by the Transaction Agreements. As of the Effective Date neither the Company nor, to the Company’s
knowledge, any of its officers, directors or Key Employees is a party or is named as subject to the provisions of any order, writ, injunction,
judgment or decree of any court or government agency or instrumentality (in the case of officers, directors or Key Employees) such as
would affect the Company. As of the Effective Date there is no action, suit, proceeding or investigation by the Company pending or which
the Company intends to initiate. The foregoing includes, without limitation, actions, suits, proceedings or investigations pending or
threatened in writing (or any basis therefor known to the Company) involving the prior employment of any of the Company’s employees,
their services provided in connection with the Company’s business, any information or techniques allegedly proprietary to any of
their former employers or their obligations under any agreements with prior employers.

 

    	 	Page 8 of 20.
 
	 

     

    

 

3.8            Compliance
with Other Instruments. The Company is not in violation or default (a) of any provisions of its Restated Certificate, (b) of
any instrument, judgment, order, writ or decree, under any note, indenture or mortgage, or (c) under any lease, agreement, contract
or purchase order to which it is a party or by which it is bound, or (v) of any provision of applicable law. The execution, delivery
and performance of the Transaction Agreements and the consummation of the transactions contemplated by the Transaction Agreements will
not result in any such violation or be in conflict with or constitute, with or without the passage of time and giving of notice, either
(i) a default under any such provision, instrument, judgment, order, writ, decree, contract or agreement; or (ii) an event
which results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, forfeiture,
or nonrenewal of any material permit or license applicable to the Company.

 

3.9            Agreements;
Actions.

 

(a)            Except
for the Transaction Agreements, there are no agreements, understandings, instruments, contracts or proposed transactions to which the
Company is a party or by which it is bound that involves the license of any patent, copyright, trademark, trade secret or other proprietary
right to or from the Company in the Field.

 

(b)            The
Company has not declared or paid any dividends, or authorized or made any distribution upon or with respect to any class or series of
its capital stock other than the Series B1 Preferred Stock.

 

(c)            The
Company is not a guarantor or indemnitor of any indebtedness of any other Person.

 

(d)            The
Company has not engaged in the past twelve (12) months in any discussion with any representative of any Person, other than Vuzix, regarding
(i) a sale or exclusive license of all or substantially all of the Company’s assets, or (ii) any merger, consolidation
or other business combination transaction of the Company with or into another Person.

 

3.10            Certain
Transactions.

 

(a)            Other
than agreements regarding payment for services on reasonable arms-length terms, there are no agreements, understandings or proposed transactions
between the Company and any of its officers, directors, consultants or Key Employees, or any Affiliate thereof.

 

(b)            The
Company is not indebted, directly or indirectly, to any of its directors, officers or employees or to their respective spouses or children
or to any Affiliate of any of the foregoing, other than in connection with expenses or advances of expenses incurred in the ordinary
course of business or employee relocation expenses and for other customary employee payroll and benefits made generally available to
all employees. None of the Company’s directors, officers or employees, or any members of their immediate families, or any Affiliate
of the foregoing are, directly or indirectly, indebted to the Company or, have any (i) material commercial, industrial, banking,
consulting, legal, accounting, charitable or familial relationship with any of the Company’s customers, suppliers, service providers,
joint venture partners, and licensees, (ii) direct or indirect ownership interest in any firm or corporation with which the Company
has a business relationship except that directors, officers, employees or stockholders of the Company may own stock in (but not exceeding
two percent (2%) of the outstanding capital stock of) publicly traded companies that may compete with the Company; or (iii) financial
interest in any contract with the Company other than the Transaction Documents.

 

(c)            [**]

 

    	 	Page 9 of 20.
 
	 

     

    

 

3.11            Rights
of Registration and Voting Rights. Except as contemplated in the Shareholders’ Agreement, no stockholder of the Company has
entered into any agreements with respect to the voting of capital shares of the Company.

  

3.12            Property.
The Company Intellectual Property in the Field that the Company owns is free and clear of all mortgages, deeds of trust or French trust
(“fiducie”), liens, loans and encumbrances, except for statutory liens for the payment of current taxes that are not
yet delinquent and encumbrances and liens that arise in the ordinary course of business and do not materially impair the Company’s
ownership or use of such property. With respect to the property and assets it leases, the Company is in compliance with such leases and
holds a valid leasehold interest free of any liens, claims or encumbrances other than those of the lessors of such property or assets.

 

3.13            Employee
Matters.

 

(a)            None
of its employees is obligated under any contract (including licenses, covenants or commitments of any nature) or other agreement, or
subject to any judgment, decree or order of any court or administrative agency, that would materially interfere with such employee’s
ability to promote the interest of the Company or that would conflict with the Company’s business. Neither the execution or delivery
of the Transaction Agreements, nor the carrying on of the Company’s business by the employees of the Company, nor the conduct of
the Company’s business as now conducted and as presently proposed to be conducted, will conflict with or result in a breach of
the terms, conditions, or provisions of, or constitute a default under, any contract, covenant or instrument under which any such employee
is now obligated.

 

(b)            The
Company is not delinquent in payments to any of its employees, consultants, or independent contractors for any wages, salaries, commissions,
bonuses, or other direct compensation for any service performed for it to the date hereof or amounts required to be reimbursed to such
employees, consultants or independent contractors. The Company has complied in all material respects with all applicable employment law,
including those related to wages, hours, worker classification and collective bargaining. The Company has withheld and paid to the appropriate
governmental entity or is holding for payment not yet due to such governmental entity all amounts required to be withheld from employees
of the Company and is not liable for any arrears of wages, taxes, penalties or other sums for failure to comply with any of the foregoing.

 

(c)            To
the Company’s knowledge, no Key Employee intends to terminate employment with the Company or is otherwise likely to become unavailable
to continue as a Key Employee. The Company does not have a present intention to terminate the employment of any of the foregoing.

 

3.14            Tax
Returns and Payments. There are no taxes due and payable by the Company which have not been timely paid. There are no accrued and
unpaid taxes of the Company which are due, whether or not assessed or disputed. The Company has duly and timely filed all tax returns
required to have been filed by it and there are in effect no waivers of applicable statutes of limitations with respect to taxes for
any year.

 

3.15            Employee
Agreements. Each Key Employee of the Company has executed or will execute an agreement with the Company regarding confidentiality
and proprietary information substantially in the form or forms delivered to the counsel for Vuzix (the “Confidential Information
Agreements”). No current or former Key Employee has excluded works or inventions from his or her assignment of inventions in
the Field pursuant to such Key Employee’s Confidential Information Agreement. Each current and former Key Employee has executed
or will execute an agreement to not compete in the Field. The Company is not aware that any of its Key Employees is in violation of any
agreement covered by this Section 3.15.

 

    	 	Page 10 of 20.
 
	 

     

    

 

3.16            Permits.
The Company has all franchises, permits, licenses and any similar authority necessary for the conduct of its business, the lack of which
could reasonably be expected to have a material adverse effect. The Company is not in default in any material respect under any of such
franchises, permits, licenses or other similar authority.

 

3.17            Corporate
Documents. The Restated Certificate of the Company is in the form provided to Vuzix. The minute books of the Company contains minutes
of all meetings of directors and stockholders and all actions by written consent without a meeting by the directors and stockholders
since the date of incorporation and accurately reflects in all material respects all actions by the directors (and any committee of directors)
and stockholders with respect to all transactions referred to in such minutes.

 

3.18            Disclosure.
The Company has made available to Vuzix all the information reasonably available to the Company that Vuzix has requested for deciding
whether to acquire the Shares. No representation or warranty of the Company contained in this Agreement and no certificate furnished
or to be furnished to Vuzix at the Effective Date contains any untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements contained herein or therein not misleading in light of the circumstances under which they were
made.

 

4.            Representations
and Warranties of Founders. Each of the Founders, severally and not jointly, represents and warrants to Vuzix on the Effective Date
and as of the date on which they are being issued Vuzix Common Stock under this Agreement as follows:

 

4.1            Conflicting
Agreements. Such Founder is not, as a result of the nature of the business now conducted or presently proposed to be conducted by
the Company or for any other reason, in violation of (a) any fiduciary or confidential relationship, (b) any term of any contract
or covenant (either with the Company or with another entity) relating to employment, patents, assignment of inventions, confidentiality,
proprietary information disclosure, non-competition in the Field, or (c) any other contract or agreement, or any judgment, decree
or order of any court or administrative agency binding on the Founder and relating to or affecting the right of such Founder to be employed
by or serve as a director or consultant to the Company. No such relationship, term, contract, agreement, judgment, decree or order conflicts
with such Founder’s obligations to use his or her best efforts to promote the interests of the Company nor does the execution and
delivery of this Agreement, nor such Founder’s carrying on the Company’s business as a director, officer, consultant or Key
Employee of the Company, conflict with any such relationship, term, contract, agreement, judgment, decree or order.

 

4.2            Litigation.
There is no action, suit or proceeding, or governmental inquiry or investigation, pending or, to such Founder’s knowledge, threatened
against such Founder, and, to such Founder’s knowledge, there is no basis for any such action, suit, proceeding, or governmental
inquiry or investigation.

 

4.3            Stockholder
Agreements. Except as contemplated by or disclosed in the Transaction Agreements, such Founder is not a party to and has no knowledge
of any agreements, written or oral, relating to the acquisition, disposition or voting of the securities of the Company.

 

4.4            Assignment
of Intellectual Property. Each Founder has assigned to the Company works or inventions in the Field.

 

4.5            Prior
Legal Matters. Such Founder has not been (a) subject to voluntary or involuntary petition under the federal bankruptcy laws
or any state insolvency law or the appointment of a receiver, fiscal agent or similar officer by a court for his or her business or property;
(b) convicted in a criminal proceeding or named as a subject of a pending criminal proceeding (excluding traffic violations and
other minor offenses); (c) subject to any order, judgment, or decree (not subsequently reversed, suspended, or vacated) of any court
of competent jurisdiction permanently or temporarily enjoining him or her from engaging, or otherwise imposing limits or conditions on
his or her engagement in any securities, investment advisory, banking, insurance, or other type of business or acting as an officer or
director of a public company; or (d) found by a court of competent jurisdiction in a civil action or by the Securities and Exchange
Commission or the Commodity Futures Trading Commission to have violated any federal or state securities, commodities or unfair trade
practices law, which such judgment or finding has not been subsequently reversed, suspended, or vacated.

 

    	 	Page 11 of 20.
 
	 

     

    

  

4.6            [**]

 

4.7            [**]

 

4.8            Foreign
Investors. If a Founder is not a United States person (as defined by Section 7701(a)(30) of the Code), it has satisfied itself
as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Vuzix Common Stock or
any use of this Agreement, including (i) the legal requirements within its jurisdiction for the sale of Shares of Vuzix Common Stock,
(ii) any foreign exchange restrictions applicable to such sale, (iii) any governmental or other consents that may need to be
obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the sale, holding, redemption, sale,
or transfer of the Vuzix Common Stock. The Founder’s subscription and payment for and continued beneficial ownership of the Shares
will not violate any applicable securities or other laws of the Founder’s jurisdiction.

 

4.9            No
General Solicitation. Neither the Founder, nor any of its officers, directors, employees, agents, stockholders or partners has either
directly or indirectly, including, through a broker or finder (a) engaged in any general solicitation, or (b) published any
advertisement in connection with the offer and sale of the Shares.

 

5.            Representations
and Warranties of Vuzix. Vuzix hereby represents and warrants to the Company and the Founders that:

 

5.1            Authorization.
Vuzix has full power and authority to enter into the Transaction Agreements. The Transaction Agreements to which Vuzix is a party, when
executed and delivered by Vuzix, will constitute valid and legally binding obligations of Vuzix, enforceable in accordance with their
terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and any other laws of
general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability of
specific performance, injunctive relief or other equitable remedies.

 

5.2            Purchase
Entirely for Own Account. This Agreement is made with the Company in reliance upon Vuzix’s representation to the Company, which
by Vuzix’s execution of this Agreement, Vuzix hereby confirms, that the Shares to be acquired by Vuzix will be acquired for investment
for Vuzix’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and
that Vuzix has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this
Agreement, Vuzix further represents that Vuzix does not presently have any contract, undertaking, agreement or arrangement with any Person
to sell, transfer or grant participations to such Person or to any third Person, with respect to any of the Shares. Vuzix has not been
formed for the specific purpose of acquiring the Shares.

 

5.3            Disclosure
of Information. Vuzix has had an opportunity to discuss the Company’s business, management, financial affairs and the terms
and conditions of the offering of the Shares with the Company’s management and has had an opportunity to review the Company’s
facilities. The foregoing, however, does not limit or modify the representations and warranties of the Company in Section 3 of this
Agreement or the right of Vuzix to rely thereon.

 

    	 	Page 12 of 20.
 
	 

     

    

  

5.4            Restricted
Securities. Vuzix understands that the Shares have not been, and will not be, registered under the Securities Act, by reason of a
specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature
of the investment intent and the accuracy of Vuzix’s representations as expressed herein. Vuzix understands that the Shares are
restricted securities under applicable U.S. federal and state securities laws and that, pursuant to these laws, Vuzix must hold the Shares
indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption
from such registration and qualification requirements is available. Vuzix acknowledges that the Company has no obligation to register
or qualify the Shares, or the Company Common Stock into which it may be converted, for resale. Vuzix further acknowledges that if an
exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to,
the time and manner of sale, the holding period for the Shares, and on requirements relating to the Company which are outside of Vuzix’s
control, and which the Company is under no obligation and may not be able to satisfy.

 

5.5            No
Public Market. Vuzix understands that no public market now exists for the Shares, and that the Company has made no assurances that
a public market will ever exist for the Shares.

 

5.6            Legends.
Vuzix understands that the Shares and any securities issued in respect of or exchange for the Shares, may be notated with one or all
of the following legends:

 

(a)            “The
shares represented hereby have not been registered under the securities act of 1933, and have been acquired for investment and not with
a view to, or in connection with, the sale or distribution thereof. No such transfer may be effected without an effective registration
statement related thereto or an opinion of counsel in a form satisfactory to the company that such registration is not required under
the securities act of 1933.”

 

(b)            Any
legend set forth in, or required by, the other Transaction Agreements.

 

(c)            Any
legend required by the securities laws of any state to the extent such laws are applicable to the Shares represented by the certificate,
instrument, or book entry so legended.

 

6.            Conditions
to Vuzix’s Obligations at the Effective Date. The obligations of Vuzix to purchase Series B Preferred Stock on the eleventh
(11th) month anniversary of the Effective Date is subject to the fulfillment, on or before the Effective Date, of each of
the following conditions, unless otherwise waived:

 

6.1            Representations
and Warranties. The representations and warranties of the Company contained in Section 3 and the representations and warranties
of the Founders in Section 4 will be true and correct in all respects as of the Effective Date.

 

6.2            Performance.
The Company and the Founders will have performed and complied with all covenants, agreements, obligations and conditions contained in
the Transaction Agreements that are required to be performed or complied with on or before the Effective Date.

 

6.3            Qualifications.
All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state
that are required in connection with the lawful issuance and sale of the Shares pursuant to this Agreement will be obtained and effective
as of the Effective Date.

 

    	 	Page 13 of 20.
 
	 

     

    

  

6.4            Board
of Directors. As of the Effective Date, the authorized size of the Board of Directors of the Company will be two (2) directors,
with a one director nominated by a majority of the holders of the Company Common Stock and the other director nominated by Vuzix (the
 “Board of Directors”). The voting rights for each director are as stipulated in the Shareholders’ Agreement.

 

6.5            Shareholders’
Agreement. The Company, Vuzix and the Founders will have executed and delivered the Shareholders’ Agreement.

 

6.6            Restated
Certificate. The Company will have filed amended by-laws (the “Restated Certificate”) with the Registry of Trade
and Companies of Lille Métropole on or prior to the Effective Date, which will be in full force and effect as of the Effective
Date.

 

6.7            President’s
Certificate. The President of the Company will have delivered to Vuzix at the Effective Date a certificate certifying (i) the
Restated Certificate of the Company, (ii) resolutions of the Board of Directors of the Company approving the Transaction Agreements,
and (iii) resolutions of the stockholder of the Company approving the Restated Certificate.

 

6.8            Proceedings
and Documents. All corporate and other proceedings in connection with the transactions contemplated at the Effective Date and all
documents incident thereto will be reasonably satisfactory in form and substance to Vuzix, and Vuzix (or its counsel) will have received
all such counterpart originals and certified or other copies of such documents as reasonably requested. Such documents may include good
standing certificates.

 

7.            Miscellaneous.

 

7.1            Survival
of Warranties. Unless otherwise set forth in this Agreement, the representations and warranties of the Company, the Founders and
Vuzix contained in or made pursuant to this Agreement will survive the execution and delivery of this Agreement and the Effective Date
and will in no way be affected by any investigation or knowledge of the subject matter thereof made by or on behalf of Vuzix, the Founders
or the Company.

 

7.2            Successors
and Assigns. The terms and conditions of this Agreement will inure to the benefit of and be binding upon the respective successors
and assigns of the Parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the Parties
hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

 

7.3            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
the Company:                Atomistic SAS 

3
Boulevard de Belfort 

59000
Lille 

France 

Attn: Jonathan
Sachs 

Email:
[**]

 

    	 	Page 14 of 20.
 
	 

     

    

 

To
The Founders:               Jonathan Sachs 

[**] 

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 

Email:
tanderson@hselaw.com

 

7.4            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.

 

7.5            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.

 

7.6            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.

 

7.7            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.

 

7.8            Force
Majeure. No Party will be liable hereunder to any other Party nor will be in breach for failure to perform its obligations caused
by circumstances beyond the control of any 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.

 

7.9            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.

 

    	 	Page 15 of 20.
 
	 

     

    

 

7.10            Assignment;
Change in Control. The rights under this Agreement may not be assigned by any Party (the “Assigning Party”) without
the written consent of the other Parties except (a) to any Affiliate of the Assigning Party, (b) to any Person which acquires
substantially all of the assets and business of Vuzix [**] or any successor Person who holds such Shares provided such Person signs a
deed of adherence to the Shareholders’ Agreement.

 

7.11            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.

 

7.12            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 7.12.
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 7.12 on any grounds or any law.

 

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

 

7.14            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.

 

7.15            Limitations.
Except for fraud or intentional misrepresentation, (a) the aggregate liability of the Company under this Agreement to Vuzix shall
be limited to the amount received by the Company under the License Agreement and [**] shall be limited to the return of any Vuzix Common
Stock or other consideration received [**]

 

    	 	Page 16 of 20.
 
	 

     

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

 

	 	Atomistic SAS
	 	 
	 	 
	 	By: 	/s/ Jonathan Sachs 
	 	 
	 	Name: Jonathan Sachs
	 	 
	 	Title:  President
	 	 
	 	 
	 	/s/
    Jonathan Sachs
	 	Jonathan Sachs
	 	 
	 	 
	 	/s/
    Jerry Woodall
	 	Jerry Woodall
	 	 
	 	 
	 	Vuzix Corporation
	 	 
	 	By:	/s/
    Paul Travers
	 	 
	 	Name: Paul Travers
	 	 
	 	Title:   President &
    CEO

  

    	 	Page 17 of 20.
 
	 

     

    

 

EXHIBIT A

  

Shareholders’
Agreement

 

    	 	Page 18 of 20.Exhibit 10.3

 

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.

 

On May 12th, 2022

 

 

 

Between

 

 

Jonathan Sachs

 

Jerry Woodall

 

 

and

 

 

Vuzix Corporation

 

 

 

 

 

 

	 

    SHAREHOLDERS’ AGREEMENT

     

    relating to ATOMISTIC

     

  

    	 	 	 

     

    

 

	ARTICLE 1.	Definitions and interpretation	4
	 	 	 
	ARTICLE 2.	Purpose of this Agreement	8
	 	 	 
	ARTICLE 3.	Representations and warranties	8
	 	 	 
	ARTICLE 4.	Governance	9
	 	 	 
	ARTICLE 5.	Notice of TRANSFERS; Permitted transfers; Call options	11
	 	 	 
	ARTICLE 6.	Information to VUZIX	13
	 	 	 
	ARTICLE 7.	Corporate social responsibility - ESG	14
	 	 	 
	ARTICLE 8.	Duration and termination of this Agreement	15
	 	 	 
	ARTICLE 9.	Attorney	15
	 	 	 
	ARTICLE 10.	Confidentiality	16
	 	 	 
	ARTICLE 11.	New Parties to this Agreement	17
	 	 	 
	ARTICLE 12.	Notices	18
	 	 	 
	ARTICLE 13.	Applicable law and jurisdiction	18
	 	 	 
	ARTICLE 14.	Preferential allocation in the event of a Liquidation event	18
	 	 	 
	ARTICLE 15.	Miscellaneous provisions	20
	 	 	 
	ARTICLE 16.	Electronic signature	21

 

    	 	Page 2 of 24.
 
	 

     

    

 

THIS SHAREHOLDERS' AGREEMENT IS ENTERED
BY AND BETWEEN:

 

		(1)	Dr. Jonathan
                                            Sachs [**]

 

(hereafter referred to as "Jonathan
Sachs")

 

		(2)	Dr. Jerry
                                            Woodall [**]

 

(hereafter referred to as "Jerry
Woodall")

 

(Jonathan Sachs and Jerry Woodall being
hereafter individually referred to as a “Founder” and collectively as the “Founders”)

 

of
the first part,

 

AND:

 

		(3)	Vuzix
                                            Corporation, a company incorporated under the laws of the state of Delaware, having its
                                            place of business located at 25 Hendrix Road, Suite A, West Henrietta, New York 14586,
                                            represented by Paul Travers, duly authorized,

 

(hereafter referred to as "Vuzix")

 

of
the second part,

 

(Jonathan Sachs,
Jerry Woodall and Vuzix are hereafter collectively referred to as the “Parties” and individually as a “Party”)

 

IN
THE PRESENCE OF:

 

		(4)	Atomistic,
                                            a French société par actions simplifiée, the registered office
                                            of which is located at 3 boulevard de Belfort – 59000 Lille, France, registered with
                                            the registry of commerce and companies of Lille Métropole under number 902 801
                                            950, represented by Dr. Jonathan Sachs, duly authorized, which is entering into this
                                            Agreement for the purposes of accepting the rights granted to it and acknowledging the obligations
                                            imposed on it pursuant to this Agreement,

 

(hereinafter referred to as the “Company”)WHEREAS:

 

    	 	Page 3 of 24.
 
	 

     

    

 

		A.	The share capital of the Company is
                                            set forth in Schedule A hereto.

 

		B.	In this context, the Parties have agreed
                                            to enter into this Agreement which purpose is described in Article 2.

 

Now
it is hereby agreed as follows:

 

ARTICLE 1.Definitions
and interpretation

 

		1.1	For the purposes of this Agreement, the
                                            terms listed hereafter shall have the following meaning:

 

		Affiliate	means, for any Party, (i) any
                                            fund or investment firm which controls such Party or which is managed (including through
                                            a delegation, as the case may be) by the same manager as such Party or by a manager Controlled
                                            by, Controlling or under the same Control as the manager of such Party (an “Affiliate
                                            Fund”) and (ii) any Entity Controlled by, Controlling or under the same Control
                                            as such Party or such Affiliate Fund or as the manager or investment advisor of such Party
                                            or such Affiliate Fund.

 

		Agreement	means this shareholders’
                                            agreement, as amended or supplemented from time to time by way of amendment.

 

		Anti-Corruption Laws	means
                                            the anti-bribery provisions of the French criminal code, anti-bribery legislation enacted
                                            by member states of the European Union and by signatories implementing the OECD Convention
                                            Combating Bribery of Foreign Officials, the U.S. Foreign Corrupt Practices Act of 1977, as
                                            amended, and other similar laws and regulations.

 

		Board of Directors	means
                                            the ”comité de surveillance” of the Company, as defined in the
                                            By-laws.

 

		Business Sale	means, other
                                            than to or with Vuzix, the sale (vente), transfer or other disposition of all or substantially
                                            all of the Company’s assets in one transaction or a series of related transactions,
                                            it being understood that any Business Sale will result in a Liquidation pursuant to Article 14.3.

 

		By-laws	has the meaning
                                            ascribed to it in Article 4.1.

 

		Call Options	means the
                                            Call Option and the Vuzix Call Option.

 

		Control	means (a) the direct or indirect
                                            holding of at least a majority of the share capital and/or voting rights of an Entity, (b) the
                                            right to appoint or cause the appointment of a majority of the board of directors (or similar
                                            governing body) of an Entity, or (c) the right to manage or direct the management of
                                            the assets of an Entity on a discretionary basis.

 

    	 	Page 4 of 24.
 
	 

     

    

 

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

 

		Entity	means any legal entity, company, corporation,
                                            group, investment fund, de facto company, association, partnership, or any similar organization,
                                            whether governmental or private, having or not a separate legal personality.

 

		Fair Market Value	means
                                            the fair market value (valeur vénale) of a Share (on a non-diluted basis) (i) determined
                                            by the Permitted Transferor and the Permitted Transferee or (ii), if the Permitted Transferor
                                            and the Permitted Transferee do not agree on such valuation, to be determined by an independent
                                            expert appointed, upon request of the most diligent Party concerned, by order of the president
                                            of the commercial court (tribunal de commerce) of Paris, ruling in a summary form (forme
                                            des référés) and without appeal, as set forth in article 1592 of
                                            the French civil code; the appointed expert shall, within thirty (30) days of his appointment,
                                            deliver his report to the concerned Permitted Transferor and the relevant Permitted Transferee;
                                            the expert’s fees shall be borne equally by the concerned Permitted Transferor and
                                            the concerned Permitted Transferee; it being specified that if the expert shall not be available,
                                            refuse or will otherwise not be in a position to carry out its mission as set forth here
                                            above, the concerned Party(ies) shall appoint an alternative expert under the same conditions
                                            as abovementioned.

 

		Field	has the meaning ascribed to it in the
                                            License Agreement.

 

		GAAP	means generally accepted accounting
                                            principles in the United States as in effect from time to time.

 

		Granted License	has
                                            the meaning ascribed to it in the License Agreement.

 

		Long Stop Date	has
                                            the meaning of “Date Butoir” as this term is defined in the Terms and Conditions.

 

		License Agreement	means
                                            that certain license agreement that was executed by and became binding upon the Parties and
                                            the Company as of the Effective Date.

 

		Liquidation	means the winding up, amicable
                                            liquidation or dissolution of the Company (excluding any judicial liquidation).

 

		Liquidation Event	means
                                            (i) the Business Sale; (ii) the Merger; (iii) the Sale or (iv) the Liquidation.

 

    	 	Page 5 of 24.
 
	 

     

    

 

		Merger	means, other than to or with Vuzix,
                                            the merger of the Company with or into another entity (except a merger or consolidation in
                                            which the holders of capital stock of the Company immediately prior to such merger or consolidation
                                            continue to hold more than 50% of the voting power of the capital stock of the Company or
                                            the surviving or acquiring entity).

 

		Ordinary Shares	means
                                            the ordinary stock (actions ordinaires) 0.01€ par value, of the Company.

 

		Permitted Dividends	means
                                            the cumulative amount of any and all tax credits

 

		Amount	received as deposits and/or cash by
                                            the Company and/or any Subsidiary in accordance with applicable Law.

 

		Permitted Transfer	means
                                            (a) the Call Option, (b) the Vuzix Call Option, (c) any Transfer of Securities
                                            according to the SPA and [**] any Transfer by a Permitted Transferor of Shares [**]

 

		Permitted Transferee	means
                                            the transferee of a Permitted Transfer.

 

		Permitted Transferor	means
                                            the transferor of Shares to a Permitted Transferee.

 

		Person	means any natural person and/or Entity.

 

		President	means the président
                                            of the Company within the meaning of article L. 227-6, §1, of the French Commercial
                                            Code.

 

		Sale	means, other than to or with Vuzix,
                                            the sale (vente) and/or contribution (apport), in one transaction or a series
                                            of related transactions, to a Person or group of affiliated Persons of 100% of the Securities.

 

		Securities or Security	means,
                                            now and in the future:

 

		(a)	the Shares;

 

		(b)	the valeurs mobilières donnant
                                            accès au capital or other securities giving the right, immediately or on a due
                                            date, to subscribe or otherwise acquire Shares, including but not limited to stock options
                                            (options de souscription ou d’achat d’actions), redeemable shares, warrants
                                            and founders’ warrants (bons de souscription de parts de créateur d’entreprise);

 

		(c)	the subscription rights attached to the
                                            Shares as well as to the securities mentioned in (b) above, in the event of an issue
                                            of Shares, valeurs mobilières donnant accès au capital or other securities
                                            giving a right, immediately or on a due date, to subscribe or otherwise acquire Shares; and

 

		(d)	any rights to receive free Shares, valeurs
                                            mobilières donnant accès au capital as well as to the securities mentioned
                                            in paragraph (b) above, which any of the Parties hold or may hold, for any reason whatsoever.

 

    	 	Page 6 of 24.
 
	 

     

    

 

		Series A Preferred Stock	means
                                            the series A preferred stock 0.01 € par value per share, of the Company (Actions
                                            de Préference A).

 

		Series B Preferred Stock	means
                                            together the Series B1 Preferred Stock and the the Series B2 Preferred Stock.

 

		Series B1 Preferred Stock	means
                                            the series B1 preferred stock 0.01 € par value per Share, of the Company (Actions
                                            de Préference B1).

 

		Series B2 Preferred Stock	means
                                            the series B2 preferred stock 0.01 € par value per Share, of the Company (Actions
                                            de Préference B2).

 

		Shares	means the shares issued or to be issued
                                            by the Company irrespective of class or category (including the Ordinary Shares, the Series A
                                            Preferred Stock and the Series B Preferred Stock).

 

		SPA	means that certain stock purchase agreement
                                            that was executed by and became binding upon the Parties and the Company as of the Effective
                                            Date.

 

		Shareholders	means the holders of one or
                                            several Shares.

 

		Subsidiary	means any company and/or undertaking
                                            and/or contractual or de facto venture, directly or indirectly, controlled by the
                                            Company within the meaning of article L. 233-3 of the French commercial code.

 

		Terms	and Conditionsmeans
                                            the terms and conditions of the Series A Preferred Stock and Series B Preferred
                                            Stock set forth in the By-laws.

 

		Third	Partymeans
                                            any individual or legal entity other than a Party or the Company.

 

		Transfer	means any transaction resulting
                                            or which may result at a later date (e.g., the granting of a put or call option or
                                            a pledge) in a transfer of ownership of Securities (propriété, nue-propriété
                                            ou usufruit) for any reason whatsoever (including but not limited to sales, gratuities,
                                            contributions, partial contributions of assets, mergers, de-mergers, transfers as a result
                                            of death or any combination of these methods of transfer of ownership).

 

		1.2	Pursuant to this Agreement and unless the
                                            context requires otherwise:

 

		(a)	references to Articles and Schedules
                                            are references to articles of, and schedules to, this Agreement, and the words "hereof",
                                            "herein" and "hereunder" and words of similar import, when used in this
                                            Agreement, shall refer to this Agreement as a whole and not to any particular provision of
                                            this Agreement;

 

    	 	Page 7 of 24.
 
	 

     

    

 

		(b)	headings are inserted for convenience
                                            only, in order to facilitate the reading of the Agreement and shall not affect the construction
                                            of the Agreement;

 

		(c)	the terms "including", "includes",
                                            "including in particular" or any similar terms shall be construed as having an
                                            illustrative purpose and shall not restrict the meaning of any terms following immediately
                                            such terms;

 

		(d)	references to a legal provision shall
                                            include such provision as amended from time to time;

 

		(e)	a reference to a document refers to this
                                            document, as amended, supplemented or replaced by any means whatsoever;

 

		(f)	meanings ascribed to terms defined herein
                                            shall be equally applicable to the singular and plural forms of such terms and to their other
                                            grammatical forms;

 

		(g)	French legal terms appearing in italics
                                            in this Agreement shall prevail, as to their meaning, over the English terms, and over any
                                            other possible French translation of those English terms, to which such French legal terms
                                            are referring;

 

		(h)	any statement which refers to the "best
                                            efforts" or "best endeavors" of a Party with respect to a given matter means
                                            that such Party has an "obligation de moyens" with respect to such matter;

 

		(i)	the provisions of articles 640 to 642
                                            of the French civil procedure code shall be applied to calculate any period of time for the
                                            purposes of this Agreement.

 

ARTICLE 2.Purpose
of this Agreement

 

The purpose of this Agreement is to set out the
rights and obligations of the Parties and the terms and conditions they have agreed to comply with for the duration of this Agreement
in pursuing their common objectives through the Company, it being specified that unless otherwise expressly specified herein, the Parties
are acting severally and not jointly (non solidairement).

 

ARTICLE 3.Representations
and warranties

 

Each Party represents and warrants to the other
Parties:

 

		3.1	for the Parties who are legal entities,
                                            that:

 

    	 	Page 8 of 24.
 
	 

     

    

 

		a)	it is legally incorporated or formed and
                                            in good standing under French law or the laws of the jurisdiction where it is established
                                            and that its legal representative has full powers and authority to sign and implement this
                                            Agreement; and

 

		b)	the execution and implementation of this
                                            Agreement has been validly authorized by such Party’s competent bodies, does not and
                                            will not result in a breach, termination or amendment of any term or condition of any other
                                            contract or deed to which such Party is a party and that this Agreement is not contrary to
                                            any term of any such contracts or deeds.

 

		3.2	for the Parties who are natural persons,
                                            that:

 

		a)	he or she has the capacity to sign and
                                            implement this Agreement; and

 

		b)	the execution and implementation of this
                                            Agreement does not and will not result in a breach, termination or amendment of any term
                                            or condition of any other contract or deed to which such Party is a party and that this Agreement
                                            is not contrary to any term of any such contracts or deeds.

 

		3.3	for all Parties, pursuant to French and
                                            other relevant laws and regulations against money laundering (réglementation sur
                                            la lutte contre le blanchiment de capitaux), that:

 

		a)	the funds used by such a Party in order
                                            to acquire Shares have not come from unlawful activities, including but not limited within
                                            the meaning of title VI (obligations relatives à la lutte contre le blanchiment
                                            de capitaux), Book V of the French code monétaire et financier, or violations
                                            of Anti-Corruption Laws or Sanctions,

 

		b)	it has neither favored by any means a
                                            deceitful justification of the origin of the assets or income of any offence’s perpetrator
                                            (auteur d’un délit ou d’un crime) whose offence provided the offence’s
                                            perpetrator a direct or indirect benefit, nor helped a transaction aiming at the investment,
                                            concealment or conversion of the direct or indirect benefit of any offence, and

 

		c)	it is not and is not acting for or on
                                            behalf of a Sanctioned Person.

 

ARTICLE 4.Governance

 

		4.1	As to the administration and management
                                            of the Company, each Party irrevocably undertakes to comply with the provisions of this Agreement
                                            as well as the by-laws (statuts) of the Company (the “By-laws”),
                                            as amended from time to time in accordance with the provisions of this Agreement, it being
                                            expressly agreed that, in the event of a conflict between the By-laws and this Agreement,
                                            this Agreement shall prevail among the Parties.

 

		4.2	The Company shall be administered by the
                                            President and, as the case may be, any General Manager (Directeur Général).

 

With regard to Third Parties, the President
has the widest possible powers to act in all circumstances in the name and on behalf of the Company, without prejudice of the prerogatives
of the Board of Directors described in Article 4.4 and 4.10 below or the powers of the body of shareholders of the Company pursuant
to the By-laws.

 

[**]

 

    	 	Page 9 of 24.
 
	 

     

    

 

		4.3	The Board of Directors shall be composed
                                            at all time of two (2) members as follows:

 

		i.	one (1) member who shall be appointed
                                            by a majority of the holders of the Ordinary Shares (the “OS Director”);

 

		ii.	one (1) member who shall be appointed
                                            by Vuzix (the “Vuzix Director”).

 

		4.4	The Company undertakes that none of the
                                            decisions listed below will be taken by the President, the Managing Director (Directeur
                                            général) as the case may be or any officer or legal representative of the
                                            Company or its Subsidiaries in the name thereof, without the prior approval of the Board
                                            of Directors including the positive vote of the Vuzix Director [**] :

 

		i.	[**]

 

		ii.	[**]

 

		iii.	[**]

 

		iv.	[**]

 

		v.	[**]

 

		vi.	[**]

 

		vii.	[**]

 

		viii.	[**]

 

		ix.	[**]

 

		x.	[**]

 

		xi.	[**]

 

		xii.	[**]

 

		xiii.	[**]

 

		xiv.	[**]

 

		xv.	[**]

 

		xvi.	[**]

 

		xvii.	[**]

 

		xviii.	[**]

 

		xix.	[**]

 

		xx.	[**]

 

[**]

 

    	 	Page 10 of 24.
 
	 

     

    

 

		4.5	[**]

 

		4.6	Each Party agrees that no adverse changes
                                            to the rights (including economic rights), preferences and privileges of the Series A
                                            Preferred Stock and the Series B Preferred Stock may be made without the prior approval
                                            of the holders of such Shares and notably:

 

[**]

 

In addition, pursuant to the Terms
and Conditions, each Party, within the limits of their power and their rights, undertakes to vote in favor of any shareholders’
resolution relating to (i) the creation of a specific accounting reserve for the sole purpose of the payment of the par value of
Ordinary Shares to be issued upon conversion of Series A Preferred Stock according to their Terms and Conditions (the “Specific
Reserve”) and (ii) the allocation, in one or several installments, of (a) any premiums (“prime d’émission”)
paid to subscribe Shares (including premiums paid for the subscription of Series B Preferred Stock) and (b) a portion of any
distributable profit of the Company to the Specific Reserve [**]

 

		4.7	The Parties undertake to vote or cause
                                            to vote in favor of any shareholders’ resolution and more generally to take any action
                                            required to effect and implement the provisions of this Article 4.

 

		4.8	The convening notices will be sent at least
                                            5 days in advance (except in emergencies), by any means, on the initiative of the President.

 

The quorum required for any meeting
of the Board of Directors upon first summons (convocation) (the “First Meeting”) shall include at least the
Vuzix Director (present or represented). In case such quorum is not met, the meeting may be adjourned to a new meeting to be held no
less than three (3) days after the First Meeting with the same agenda, at which no quorum other than the OS Director (present or
represented) shall be required.

 

		4.9	The Board of Directors may also deliberate
                                            by means of teleconference, videoconference or any other method of remote meeting, with the
                                            persons participating in the meeting in this manner being deemed to be present for the calculation
                                            of quorum and majority.

 

		4.10	Without prejudice to Article 4.4,
                                            the Board of Directors shall meet quarterly to discuss :

 

[**]

 

		4.11	No remuneration is paid for the duties
                                            of a member of the Board of Directors.

 

ARTICLE 5.Notice
of TRANSFERS; Permitted transfers; Call options

 

		5.1	For ten (10) years after the date
                                            of this Agreement, so long as the Granted License has not been terminated or the License
                                            Agreement has not been terminated during this period, the Founders may not Transfer any Shares
                                            [**] without the prior written consent of Vuzix and the Company will not recognize any Transfer
                                            in violation of this provision, which Transfer will be deemed null and void and of no force
                                            or effect.

 

    	 	Page 11 of 24.
 
	 

     

    

 

		5.2	Notwithstanding Article 5.1, a Permitted
                                            Transferor may make Permitted Transfers without the consent of the other Parties provided
                                            that (a) the Permitted Transferor provides the other Parties written notice of such
                                            transfer, and (b) such Permitted Transfer complies with Article 11. Each Party
                                            will provide the other Parties with written notice of any other transfers permitted by this
                                            Agreement.

 

		5.3	As from the date Vuzix owns at least 25,250,000
                                            Ordinary Shares (the “Call Option Trigger Date”), Vuzix shall have the
                                            right, upon its sole option, within three hundred sixty five (365) days following the Call
                                            Option Trigger Date (the "Call Option Period"), to purchase all Ordinary
                                            Shares [**] (the "Option Securities") in accordance with the provisions
                                            of this Article 5.3 (the "Call Option").

 

Vuzix accepts the benefit of the Call
Option as an irrevocable promise to sell [**]

 

The sale price of the Option Securities
under the Call Option shall be equal to EUR one (1 €) per share.

 

Vuzix shall have the right to exercise
the Call Option anytime within the Call Option Period by issuing a notice to the Company [**] of its desire to exercise such Call Option
(the “Call Option Exercise Notice”).

 

Should Vuzix exercise the Call Option
pursuant to the terms and conditions set forth above, the transfer of the Option Securities shall be completed by the delivery of the
share transfer forms and other documents (duly completed and executed) required for the transfer of ownership and the registration of
the transfer in the Company's share transfer register, in exchange for payment of the corresponding price, at the latest thirty (30)
days after the Call Option Exercise Notice (the “Call Option Completion Date”).

 

The payment of the sale price of the
Option Securities by Vuzix shall be made by wire transfer, in immediately available funds [**] the details of which will be provided
[**] prior to the Call Option Completion Date.

 

If the Call Option is not exercised
during the Call Option Period, such Call Option is automatically void.

 

		5.4	As from the 5th anniversary
                                            of the date of this Agreement, in the event that (i) the Valuation Milestone (as defined
                                            in the SPA) has not be achieved or accelerated according to section 2.2(a) or section
                                            2.2(d) respectively of the SPA at this date and that (ii) Vuzix owns at least 25,250,000
                                            Ordinary Shares upon conversion of 25,250 shares of Series A Preferred Stock, Vuzix
                                            shall have the right, upon its sole option, to purchase (a) 3,030 shares of Series B
                                            [**] and (b) 758 shares of Series B [**] (the "Vuzix Option Securities")
                                            in accordance with the provisions of this Article 5.4 (the “Vuzix Call Option”).

 

Vuzix accepts the benefit of such undertaking
as an irrevocable promise to sell [**]

 

    	 	Page 12 of 24.
 
	 

     

    

 

Vuzix shall exercise the Vuzix Call
Option [**] within three hundred sixty five (365) days following the later to occur of (i) the date of payment by the Company of
the dividends declared for the financial year ending before the 5th anniversary of the date of this Agreement or (ii) the
Call Option Trigger Date (the "Vuzix Call Option Period"), a notice indicating its decision to exercise the Vuzix Call
Option pursuant to this Article 5.4. In such case [**] shall be bound to Transfer to Vuzix all [**] Series B Preferred Stock
[**] for EUR ten (10 €) per share, within ten (10) days as from the notice from Vuzix [**]

 

The transfer of the shares of Series B
Prefered Stock to Vuzix shall be completed by the delivery of the share transfer forms and other documents (duly completed and executed)
required for the transfer of ownership and the registration of the transfer in the Company's share transfer register, in exchange for
payment of the corresponding price (the "Vuzix Call Option Completion Date”).

 

The payment of the sale price of the
Vuzix Option Securities by Vuzix shall be made by wire transfer, in immediately available funds [**] the details of which will be provided
[**] prior to the Vuzix Call Option Completion Date.

 

If the Vuzix Call Option is not exercised
during the Vuzix Call Option Period, such Vuzix Call Option is automatically void.

 

ARTICLE 6.Information
to VUZIX

 

		6.1	In addition to the rights granted to them
                                            by applicable laws and regulations, the Company and the Founders, within the limit of their
                                            respective powers, undertake that Vuzix shall be provided with the following financial statements
                                            with respect to the Company and its Subsidiaries, if any:

 

		i.	as soon as practicable, but in any event
                                            within ninety (90) days after the end of each fiscal year of the Company (i) a balance
                                            sheet as of the end of such year, (ii) statements of income and of cash flows for such
                                            year, and (iii) a statement of stockholders’ equity as of the end of such year,
                                            if requested by Vuzix, the Company will appoint a statutory auditor and all such financial
                                            statements will be audited, the cost of which audit will be borne by Vuzix;

 

		ii.	as soon as practicable, but in any event
                                            within forty-five (45) days after the end of each quarter of each fiscal year of the Company,
                                            unaudited statements of income and cash flows for such fiscal quarter, and an unaudited balance
                                            sheet as of the end of such fiscal quarter, all prepared in accordance with GAAP (except
                                            that such financial statements may (i) be subject to normal year-end adjustments; and
                                            (ii) not contain all notes thereto that may be required in accordance with GAAP);

 

		iii.	with respect to the financial statements
                                            called for in paragraph (i) of this Article 6.1, an instrument executed by the
                                            chief financial officer (if there is one) or the accountants for the Company certifying that
                                            such financial statements were prepared in accordance with GAAP consistently applied with
                                            prior practice for earlier periods (except as otherwise set forth in paragraph (ii) of
                                            this Article 6.1) and fairly present the financial condition of the Company and its
                                            results of operation for the periods specified therein.

 

    	 	Page 13 of 24.
 
	 

     

    

 

		6.2	Such other information relating to the
                                            financial condition, business, prospects, or corporate affairs of the Company as any shareholder
                                            of the Company may from time to time reasonably request.

 

		6.3	If, for any period, the Company has any
                                            Subsidiary whose accounts are consolidated with those of the Company, then in respect of
                                            such period the financial statements delivered pursuant to the foregoing sections shall be
                                            the consolidated and consolidating financial statements of the Company and all such consolidated
                                            Subsidiaries.

 

		6.4	In addition, the Company shall allow reasonable
                                            inspection of its properties and books and financial records by Vuzix, provided that Vuzix(and/or,
                                            as the case may be, its advisor) enters into customary non-disclosure agreements with respect
                                            to the information that may be provided to them on such inspection, and being specified that:

 

		i.	the fees and expenses of each such inspection
                                            shall be borne by Vuzix unless such inspection is made necessary because of a continued breach
                                            of the obligations under this Article 6 for more than sixty (60) days after notification
                                            of such breach to the Company, in which case such fees and expenses shall be borne by the
                                            Company, up to 20,000 € per financial year;

 

		ii.	the Company shall be informed at least
                                            five (5) business days in advance of any inspection; and

 

		iii.	such inspection shall be exercised
                                            during normal business hours.

 

ARTICLE 7.Corporate
social responsibility - ESG

 

The Company acknowledges that Vuzix and its Affiliates
make their investments and monitor their shareholdings in consideration of the environmental, social, corporate and the good corporate
governance standards, such as:

 

		•	use
                                            of the natural resources;

 

		•	environmental
                                            impact;

 

		•	employment;

 

		•	social
                                            dialogue;

 

		•	human
                                            resources;

 

		•	attention
                                            paid to people;

 

		•	relationship
                                            with suppliers and clients;

 

		•	relationship
                                            with the region and stakeholders in general;

 

    	 	Page 14 of 24.
 
	 

     

    

 

		•	governance;
                                            or

 

		•	management.

 

The Company undertakes to make its best efforts
to adopt a progress-making approach so that the Company and its Subsidiaries, as the case may be, operate their business in a way which
reconciles economic interest and corporate social responsibility.

 

ARTICLE 8.Duration
and termination of this Agreement

 

		8.1	This Agreement is entered into for a period
                                            of fifteen (15) years as from its execution. At the end of this first period of fifteen (15)
                                            years, this Agreement shall be automatically renewed for periods of five (5) years.
                                            On any renewal, any Party may terminate its participation to this Agreement, by notifying
                                            such decision to the other Parties at least six (6) months in advance.

 

		8.2	This Agreement will terminate as to any
                                            specific Party, on the date when such Party shall cease to hold any Shares or Security, save
                                            that (i) this shall not relieve that Party and the Company from any liabilities or obligations
                                            whatsoever in respect of matters, undertakings or conditions which shall have been done or
                                            not have been done, observed or performed by that Party prior to such termination, and (ii) provisions
                                            of Article 10 shall continue to bind that Party and the Company for a two (2) year
                                            period after the termination of this Agreement.

 

ARTICLE 9.Attorney

 

		9.1	In order to guarantee the exercise of the
                                            rights which the Parties mutually grant to each other and to give full effect to this Agreement,
                                            the Parties agree to designate, jointly and irrevocably, the Company as their common attorney
                                            in charge of administrating this Agreement (the “Attorney”).

 

The Company is entering into this Agreement
specifically to accept this power of attorney of common interest, in accordance with the following provisions. For the purpose of article
1161 of the French civil code, each Party represented for the purpose of this Agreement has expressly authorized, as the case may be,
its attorney to act as representative of any other Party.

 

		9.2	As the administrator of this Agreement,
                                            especially empowered by the Parties for the duration of this Agreement as provided in Article 9.1:

 

		i.	only the Attorney will be allowed to
                                            deal with and, as the case may be, to enforce the transfer orders (ordres de mouvement)
                                            issued by the Parties and relating to the Securities;

 

		ii.	the Attorney shall be bound to check
                                            the conformity of such transfer orders to the undertakings subscribed in this Agreement;

 

    	 	Page 15 of 24.
 
	 

     

    

 

		iii.	the Attorney shall register a transfer
                                            order only after ensuring that the procedures provided for in this Agreement have been complied
                                            with and that the execution of the transfer order may be completed;

 

		iv.	the Attorney shall ensure that (i) the
                                            shareholders of the Company holding 5% and less of the Shares on a non-fully diluted basis
                                            and (ii) the holders of options or warrants to subscribe or purchase Shares or other
                                            Securities execute a short-form shareholders’ agreement;

 

Consequently, the Parties hereby grant
to the Attorney all powers to execute the short-form shareholders’ agreement in the name and on behalf of all Parties;

 

		v.	the Attorney shall record adhesions to
                                            this Agreement as provided for in Article 11 (New parties to this Agreement);

 

		vi.	the Attorney will collect by all means
                                            the unanimous decisions of the Parties relating to the amendment, modification or waiver
                                            of any of the provisions hereof and will implement, as the case may be, the resulting changes
                                            to this Agreement.

 

		9.3	This power of attorney shall apply to all
                                            of the Securities held by the Parties.

 

ARTICLE 10.Confidentiality

 

		10.1	Each Party undertakes to consider as strictly
                                            confidential and not to divulge, sell or transfer to any Third Party, this Agreement and
                                            any documents or information which it may acquire or to which it may have access in the course
                                            of its relationship with or responsibilities in the Company concerning, in particular, the
                                            activities, products, clients, the strategy, the development, the commercial or partnership
                                            agreements and the financial situation of the Company or its Subsidiaries unless made:

 

		•	with
                                            the prior consent of the Parties (for this Agreement) and of the Company (for any document
                                            or information relating thereto),

 

		•	as
                                            required by the applicable mandatory laws or regulations,

 

		•	to
                                            the directors, managers, employees or professional advisers of a Party, provided that it
                                            be necessary to the performance by such Party of its obligations and undertakings or to the
                                            exercise of its rights in relation to the Company and provided that the director, manager,
                                            employee or professional adviser referred to above be subject to a customary confidentiality
                                            agreement or similar confidentiality obligation, which the Party concerned will make sure
                                            of, it being specified that the persons representing funds or investment firms which are
                                            Parties may communicate to the competent bodies of the companies managing such funds the
                                            information required to allow them to make decisions upon matters relating to the Company.
                                            In addition, the said managing companies may communicate the information required under applicable
                                            laws and regulatory or pursuant to their respective bona fide internal policies to the shareholders,
                                            partners or members of the relevant fund or investment firms, provided that the managing
                                            companies, shareholders, partners or members of the relevant fund or investment firms referred
                                            to above be subject to a customary confidentiality agreement or similar confidentiality obligation,
                                            which the Party concerned will make sure of,

 

    	 	Page 16 of 24.
 
	 

     

    

 

		•	regarding
                                            the existence of any pacte de préférence granted pursuant to this Agreement
                                            (but excluding its content), in accordance with article 1123 of the French civil code, to
                                            a Third Party by any Party who benefits from such pacte de préférence,
                                            but only in order to and to the extent necessary to preserve its right, being provided that
                                            such Party shall previously inform the Company of any request to this effect, or

 

		•	with
                                            the prior authorization of Vuzix, to a bona fide potential investor subject to a customary
                                            confidentiality agreement, which the Party concerned will make sure of.

 

		10.2	Information will not be regarded as confidential,
                                            however, if:

 

		•	it
                                            is in the public domain due to a third party and not because of the negligence of the Party
                                            concerned;

 

		•	it
                                            is available through other sources without breach of any confidentiality undertaking.

 

ARTICLE 11.New
Parties to this Agreement

 

Should a Party decide to Transfer
one or more of its Shares or other Securities to a Third Party if and as permitted hereby, such Party undertakes to require the Third
Party to, and such Transfer shall be conditioned upon:

 

		•	The
                                            written agreement by said Third Party (i) to adhere to and be bound by this Agreement
                                            and the SPA and become a Party for purposes of this Agreement and the SPA and the said Third
                                            Party shall accede to this Agreement and the SPA with the same quality, rights and obligations
                                            as the transferor of the Shares except for rights and obligations that are by their nature
                                            strictly personal to the transferor.

 

		•	The
                                            execution by said Third Party of deeds of adherence to this Agreement and the SPA as confirmation
                                            that such transferee shall be bound by all the terms and conditions of this Agreement and
                                            the SPA.

 

For this purpose, the Parties grant to the Company,
an irrevocable power to record such adhesion in their name and on their behalf.

 

Accordingly, the mere signature by the Company
of a copy of this Agreement signed also by said Third Party shall be deemed signed by all Parties.

 

The Company shall also have all powers to modify
this Agreement, but only to the extent required to insert therein the name of the Third Party, and all the Parties shall be bound by
the modifications so made.

 

    	 	Page 17 of 24.
 
	 

     

    

 

A copy of the amended Agreement shall then be
sent by the Company to each of the Parties.

 

If the Third Party does not execute a deed of
adherence to each of this Agreement and the SPA on the Transfer date at the latest, the Parties irrevocably instruct the Attorney not
to register the Transfer of Securities to the Third Party in the individual shareholders’ accounts until a deed of adherence to
each of this Agreement and the SPA signed by such Third Party has been secured.

 

ARTICLE 12.Notices

 

		12.1	All notices and other communications required
                                            or authorized hereunder shall be in writing and validly made if either delivered via courier
                                            or sent by registered letter (return receipt requested), facsimile or e-mail (provided that
                                            it be confirmed by same day registered letter, return receipt requested or courier on expedited
                                            basis for notices sent across international boundaries) to the registered office or residence
                                            of the Party concerned as specified in the above recitals.

 

Any change in address or representative
for purposes hereof shall be notified by the Party concerned to the other Parties as provided above.

 

		12.2	Notices and other communications delivered
                                            via courier shall be deemed to be received as of their date of delivery, as evidenced by
                                            the delivery receipt.

 

Notices and other communications sent
by registered mail, return receipt requested, shall deemed to be received as of their date of first presentation to the addressee.

 

Notices and other communications sent
by facsimile or e-mail shall be deemed to be received as of the date thereof, provided that they be confirmed by same day registered
letter, return receipt requested or courier on expedited basis for notices sent across international boundaries.

 

ARTICLE 13.Applicable
law and jurisdiction

 

This Agreement shall be governed as to its validity,
interpretation and performance by the laws of France.

 

Any dispute arising in connection with this Agreement
and its exhibits or as a result or consequence thereof not otherwise settled shall be subject to the exclusive jurisdiction of the Paris
commercial courts.

 

ARTICLE 14.Preferential
allocation in the event of a Liquidation event

 

		14.1	Pursuant to the Terms and Conditions,
                                            in cases where the Company is the subject of a Liquidation Event, the Parties agree to proceed
                                            with a specific distribution of the overall consideration resulting for them from such Liquidation
                                            Event.

 

    	 	Page 18 of 24.
 
	 

     

    

 

		14.2	For the purposes hereof, the “Amount
                                            for Allocation” in respect of a Liquidation Event will be (a) the Proceeds
                                            of the Transfer in the event of a Sale or (b) the Liquidation Proceeds in the event
                                            of a Liquidation (including the Liquidation resulting from a Business Sale pursuant to Article 14.3)
                                            or (c) the Merger Shares in the event of a Merger, it being understood that:

 

		(i)	the Amount for Allocation used for the
                                            application of the Allocation Key (as defined below) in respect of a Sale will be equal to
                                            the total Transfer price effectively received by the Parties participating to the Sale (the
                                            “Transfer Proceeds”), it being specified that if the Transfer Proceeds
                                            include a part whose payment is deferred or conditional on the occurrence of one or more
                                            events (the “Price Supplement”), the Parties undertake to apply the principles
                                            described in the Terms and Conditions and this Article 14 to the allocation of the Price
                                            Supplement between them;

 

		(ii)	the Amount for Allocation used for the
                                            application of the Allocation Key in respect of a Liquidation will be equal to the proceeds
                                            of the Liquidation available after settlement of all liabilities, payment of the liquidation
                                            costs of the Company, and repayment of the par value of all the outstanding Securities and,
                                            more generally, after any other priority payment made by the Company imposed by the law and
                                            the applicable regulations (the “Liquidation Proceeds”);

 

		(iii)	in respect of a Merger, the shares
                                            newly issued to the Parties participating in the Merger (the “Merger Shares”)
                                            by the corporation benefiting the contribution or the surviving corporation, as the case
                                            may be, in exchange for the Shares transferred to it by the Parties participating in the
                                            Merger would be allocated mutatis mutandis as described in the Allocation Key.

 

		14.3	In the event that a Business Sale occurs,
                                            the Parties undertake to vote or cause to vote in favor of a Liquidation to be completed
                                            within ninety (90) days of said Business Sale, and the proceeds from such liquidation shall
                                            be allocated as described in Article 14.4.

 

		14.4	The allocation of the Amount for Allocation
                                            will be made according to the following (the “Allocation Key”):

 

		(i)	in first place, the Amount for Allocation
                                            will be distributed between all the Parties participating to the Transaction, in proportion
                                            to the number of Shares held by each of them irrespective of their class, up to an amount
                                            per Share equal to five (5) percent of the Amount for Allocation;

 

		(ii)	in second place, the balance of the
                                            Amount for Allocation after payment of the amounts referred to in (i) above will be
                                            allocated to those Shareholders holding Series A Preferred Stock participating in the
                                            Liquidation Event, up to a total amount equal to forty-nine (49) percent of the Amount for
                                            Allocation irrespective of the number of shares of Series A Preferred Stock, and after
                                            deduction of the amounts referred to in (i) above paid in respect of each Series A
                                            Preferred Stock that they hold (the “Preference A Amount”);

 

    	 	Page 19 of 24.
 
	 

     

    

 

		(iii)	in third place, the balance of the
                                            Amount for Allocation after payment of the amounts referred to in (i) and (ii) above
                                            will be allocated to those Shareholders holding Series B Preferred Stock participating
                                            in the Liquidation Event (irrespective of their class) up to an amount per share of Series B
                                            Preferred Stock held by each of them equal to (i) the Preference A Amount divided by
                                            (ii) the total number of outstanding shares of Series A Preferred Stock, it being
                                            understood that, in the event that there would be no outstanding Series A Preferred
                                            Stock on the completion date of the Liquidation Event, the balance of the Amount for Allocation
                                            after payment of the amounts referred to in (i) and (ii) above will be allocated
                                            to those Shareholders holding Series B Preferred Stock participating in the Liquidation
                                            Event (irrespective of their class) up to an amount per share of Series B Preferred
                                            Stock held by each of them equal to the subscription price of the shares of Series B
                                            Preferred Stock;

 

		(iv)	finally, the remaining Amount for Allocation,
                                            if any, after payments of the amounts referred to in (i) to (iii) above, will be
                                            allocated among those Shareholders holding Ordinary Shares participating in the Liquidation
                                            Event pro rata based on the number of Ordinary Shares they hold.

 

		14.5	If, at one of the stages of the Allocation
                                            Key mentioned above, the fraction of the Amount for Allocation is insufficient to serve fully
                                            the relevant financial rights, the distribution of the available fraction will be made pro
                                            rata of the total financial rights of each holder of the Company’s Securities in respect
                                            of the relevant stage, in relation to all of the financial rights to be served in respect
                                            of this stage.

 

		14.6	Each Party undertakes to take all reasonable
                                            actions within its respective powers to apply and comply with the provisions of this Article 14.
                                            In particular, any Transfer contract giving rise to the application of the Allocation Key
                                            shall contain any stipulation required to allow the proceeds to be allocated in accordance
                                            with the above.

 

ARTICLE 15.Miscellaneous
provisions

 

		15.1	Except as otherwise expressly set forth
                                            herein, all references to a number of days shall be to calendar days.

 

		15.2	In the event any of the provisions hereof
                                            were held to be null or inapplicable, in any form and for any reason, the Parties undertake
                                            to consult each other to remedy the cause of such nullity, so that, except where impossible,
                                            this Agreement remains in full force without disruption.

 

		15.3	The Parties undertake to communicate,
                                            execute and deliver any information and any document, as well as to take any action or decision
                                            which may be necessary to the performance of this Agreement.

 

		15.4	The Parties and the Company acknowledge
                                            that, pursuant to the terms of this Agreement, they are bound by certain undertakings to
                                            Transfer Securities. As a consequence, and in accordance with article 1124 of the French
                                            civil code, each Party and the Company acknowledges that in case of any withdrawal or non-performance
                                            of a Transfer subsequent to the exercise of an option or an undertaking to Transfer Securities,
                                            it will not prevent the underlying agreement to be valid.

 

    	 	Page 20 of 24.
 
	 

     

    

 

Each Party and the Company further
agrees that if a Party defaults in the execution of any such undertakings hereunder (before or after the exercise of the right to purchase
Securities by the other Parties), the allocation of damages to the other Parties will not be an appropriate and sufficient remedy.

 

Each Party and the Company acknowledges
that, accordingly, (i) the beneficiary of any option or right hereunder shall, in any case, be entitled to pursue specific performance
(exécution forcée) without prejudice to any additional compensation (dommages et intérêts complémentaires)
and (ii) by exception to article 1221 of the French civil code, there exists no physical, legal nor moral obstacle that would prevent
such specific performance (exécution forcée) to take place and (iii) each Party and the Company may in any
case be entitled to pursue specific performance (exécution forcée) even if an obvious disproportion between the
cost of the performance of its obligation for the debtor and the interest of the beneficiary (for the purpose of article 1221 of the
French civil code) would result from such specific performance (exécution forcée).

 

		15.5	Each Party and the Company declares to
                                            assume all the risks arising from an unpredictable change of circumstances (changement
                                            de circonstances imprévisible) as a result of which implementing this Agreement
                                            would become excessively onerous for such Party and acknowledges that the valuation of the
                                            Shares or Securities may vary in the future. As a consequence, each Party waives its right
                                            to make any claim under article 1195 of the French civil code, in particular with respect
                                            to any variation of the value of the Shares.

 

		15.6	This Agreement will benefit to and be
                                            binding on the heirs, legatees, assignees, and legal representatives of each of the Parties.

 

		15.7	The Parties and the Company declare that
                                            they have sought counsel from their respective own lawyers and/or other advisors and have
                                            therefore been able to independently assess the scope of their rights and obligations under
                                            this Agreement. No advisor or lawyer shall be deemed to be the sole draftsman (rédacteur
                                            unique) of this Agreement vis-à-vis all the Parties.

 

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

 

ARTICLE 16.Electronic
signature

 

		16.1	The Parties and signatories of the Agreement
                                            acknowledge and agree:

 

    	 	Page 21 of 24.
 
	 

     

    

 

		(i)	that the Agreement is entered into in
                                            writing in electronic form, in accordance with the terms of article 1366 of the French Civil
                                            Code, and signed electronically by means of a reliable identification process implemented
                                            by DocuSign® (www.docusign.com), guaranteeing the link between each signature
                                            and this Agreement in accordance with the provisions of article 1367 of the French Civil
                                            Code;

 

		(ii)	that the signature of this Agreement
                                            via the affixing of an electronic signature is performed with full knowledge of the technology
                                            used to that end, of its terms of use and of provisions of articles 1366 and 1367 of the
                                            French Civil Code, and thus irrevocably and unconditionally waive any right he/she/it would
                                            have to make any claim or initiate legal proceedings directly or indirectly in relation to
                                            the reliability of such electronic signature process and/or evidence of his/her/its intention
                                            to enter into this Agreement in such respect;

 

		(iii)	that the Agreement has the same enforceability
                                            as a hard-copy written document pursuant to the provisions of article 1366 of the French
                                            Civil Code and the Agreement shall be validly invoked to evidence such enforceability;

 

		(iv)	that (i) the requirement of having
                                            one original copy of the Agreement per Party shall be deemed to be fulfilled if the Agreement
                                            electronically signed is established and stored pursuant to articles 1366 and 1367 of the
                                            French Civil Code and (ii) this process allows each Party to be provided with a copy
                                            of the Agreement on a material format or to have access to a copy of the Agreement, pursuant
                                            to the provisions of article 1375 of the French Civil Code;

 

		(v)	to designate Paris (France) as the place
                                            of signature of the Agreement; and

 

		(vi)	that the Agreement shall take effect
                                            on the Effective Date.

 

[Signature pages follow]

 

    	 	Page 22 of 24.
 
	 

     

    

 

Executed as of the Effective Date, via DocuSign,
by:

 

	 /s/ Jonthan Sachs
	 	/s/ Jerry Woodall

	‌Dr. Jonathan Sachs
	 	‌Dr. Jerry Woodall

	 	 	 
	 	 	 
	

    /s/ Paul Travers
	 	

    /s/ Jonathan Sachs

	Vuzix Corporation

    duly represented by Mr. Paul Travers 
	 	Atomistic

    duly represented by ‌Dr. Jonathan
    Sachs

 

    	 	Page 23 of 24.
 
	 

     

    

 

Schedule A

 

The capital of the Company immediately prior
to the date of this Agreement consists of:

 

		1.	29,038 Ordinary Shares [**]:

 

[**]

 

		2.	29,038 shares of Series B Preferred
                                            Stock [**]:

 

[**]

 

 

    	 	Page 24 of 24.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}]]