Document:

EX-10.17

Exhibit 10.17

DEMAND NOTE

			
	 	 	 
	$247,690.92
	 	June 16, 2000

     FOR VALUE RECEIVED, the undersigned, Interactive Imaging Systems, Inc. (Borrower), hereby
promises to pay to the order of Paul Travers (Lender), the principal sum of Two hundred forty seven
thousand six hundred ninety dollars and ninety two cents ($247,690.92), or if less, the aggregate
unpaid principal amount of all advances made by Lender to Borrower within 20 days from date of this
note. The Lender shall maintain a recorded of amounts of principal and interest payable by Borrower
from time to time, and the records of the Lender maintained in the ordinary course of business,
shall be prima facie evidence of the existence and amounts of Borrower’s obligations recorded
therein. In the event of transfer of this Note, or if the Lender shall otherwise deem it
appropriate, the Borrower hereby authorizes the Lender to endorse on this Note the amount of
advances and payments to reflect the principal balance outstanding from time to time. The lender
may send written confirmation of advances to Borrower but any failure to do so shall not relieve
the Borrower of the obligation to repay any advance.

     This note shall bear interest on the outstanding balances, until paid, at a rate per annum of
one point (1%) above the stated prime commercial lending rate of Chase Bank, N.A. in effect from
time to time, but never more than the maximum rate allowed by law. All changes in the rate of
interest hereunder due to a change in the stated prime rate shall occur automatically without
notice as of the effective date of the change of such prime rate by Chase Bank, N.A.

     The terms of this note cannot be changed, nor may a writing executed by the Lender discharge
this Note, in whole or in part, except. In the event that the Lender demands or accepts partial
payments of this note, such demands or acceptance shall not be deemed to constitute a waiver of the
right to demand the entire u aid balance of this note at any time in accordance with the terms
hereof. Any by the Lenders in exercising any rights hereunder shall not operate as a such rights.

	 	 	 	 	 	 	 
	 	 	INTERACTIVE IMAGING SYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Paul J. Travers
 

Paul J. Travers
	 	 
	 

	 	Title:
	 	PresidentEX-10.18

Exhibit 10.18

LOAN AGREEMENT

     LOAN AGREEMENT dated as of October ___, 2008, between Vuzix Corporation, a Delaware corporation
(the “Borrower”), and Paul J. Travers (the “Lender”). The parties hereto hereby
agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.01 Defined Terms. As used in this Agreement, the following terms have the following
meanings (terms defined in the singular to have the same meaning when used in the plural and vice
versa):

     “Agreement” means this Agreement, as amended, supplemented, or modified from time to time.

     “Business Day” means any day other than a Saturday, Sunday, or other day on which commercial
lenders in New York, New York are authorized or required to close under the laws of the State of
New York.

     “Loan(s)” shall have the meaning assigned to such term in Section 2.01.

     “Loan Documents” mean this Agreement and the Note. 
     “Note” shall have the meaning
assigned to such term in Section 2.04.

     “Office” means the Lender’s place of business at of 75 Town Centre Drive, Rochester, NY 14623
or such other address as may be designed by the Lender pursuant to the provisions of hereof.

ARTICLE II

AMOUNT AND TERMS OF THE LOAN 

     SECTION 2.01 Loans. Lender agrees, on the terms and conditions hereinafter set forth, to make
loans (the “Loans”) to the Borrower from time to time during the period from the date of this
Agreement up to but not including December 31, 2010, in such amounts as the Borrower may request
and the Lender may agree pursuant to the terms hereof. Borrower shall be entitled to draw the Loans
down in an initial installment of Seventy Thousand Dollars ($70,000.00) and subsequent installments
of at least Five Thousand Dollars ($5,000.00) each. The Lender may decline to make any Loan, in its
sole discretion, without further obligation or liability to the Borrower.

     SECTION 2.02 Notice and Manner of Borrowing. Each of the parties acknowledges that the initial
$70,000.00 installment of the Loan has already been funded. The Borrower shall give the

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Lender at least two (2) Business Days’ written or telegraphic notice (effective upon receipt) of
any subsequent request for Loans under this Agreement, specifying the date and amount thereof. On
the date of such Loan (and subject to his right to decline to make such Loans as set forth in
Section 2.01), the Lender will make such Loans available to the Borrower by bank check, unless in
any request for Loans the Borrower shall request that such Loan be funded in immediately available
funds, in which case the Lender shall make such Loan not later than 2:00 P.M. Eastern Standard time
on the date of such Loan by wire transfer to the account of Borrower, in accordance with wire
transfer instructions contained in Borrower’s notice.

     SECTION 2.03 Interest. The Borrower shall pay interest to the Lender on the outstanding and
unpaid principal amount of the Loans made under this Agreement at a rate per annum equal to twelve
percent (12%) per annum. Interest shall be calculated on the basis of a year of 360 days for the
actual number of days elapsed. Interest shall be paid in immediately available funds at maturity.

     SECTION 2.04 Note. All Loans made by the Lender under this Agreement shall be evidenced by,
and repaid with interest in accordance with, a single promissory note of the Borrower to the order
of the Lender, respectively, in substantially the form of Exhibit A. Such Note shall be
dated the date of this Agreement and payable to the Lender (the “Note”). The Lender is
hereby authorized by the Borrower to endorse on the schedule attached to the Note the amount of
each Loan and of each payment of principal received by the Lender on account of the Loans, which
endorsement shall, in the absence of manifest error, be conclusive as to the outstanding balance of
the Loans made by the Lender; provided, however, that the failure to make such notation with
respect to any Loan or payment shall not limit or otherwise affect the obligations of the Borrower
under this Agreement or the Note.

     SECTION 2.05 Payment and Prepayments. All Loans shall be payable on demand. The Borrower may,
at any time, prepay the Note in whole or in part without premium or penalty but with accrued
interest to the date of such prepayment on the amount prepaid.

     SECTION 2.06 Method of Payment. The Borrower shall make each payment under this Agreement and
under the Note on the date when due in lawful money of the United States to the Lender at his
Office in immediately available funds. Whenever any payment to be made under this Agreement or
under the Note shall be stated to be due on a Saturday, Sunday, or a public holiday, or the
equivalent for lenders generally under the laws of the State of New York, such payment shall be
made on the next succeeding Business Day, and such extension of time shall in such case be included
in the computation of the payment of interest.

ARTICLE III

SECURITY 

     SECTION 3.01 Security Interest. As security for the payment of principal and accrued interest
under this Agreement, the Borrower hereby grants to the Lender a security interest in all of the
its assets listed on Schedule A attached hereto (the “Collateral”). Borrower

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shall not and nothing in this Section 3.01 shall constitute, or be deemed to constitute, a grant of
authority to Borrower to, sell, lease, or otherwise dispose of or encumber the Collateral, or any
part of the Collateral, without the prior written consent of Lender, except in the ordinary course
of business or as otherwise provided herein. The security interest hereby created shall attach
immediately upon execution of this Agreement and concurrently herewith, the Borrower shall execute
any financing statement or financing statements requested by Lender to perfect the security
interest created hereby. Such financing statement or statements shall be on a form or forms
approved by the New York Secretary of State and Borrower shall forthwith pay to Lender the filing
fees required to file such statement or statements in the manner required by the Uniform Commercial
Code as in effect in the State of New York. In addition, Borrower shall pay from its own funds, as
they become due, all taxes and assessments levied or assessed against the Collateral, or any part
of the Collateral, prior to the final termination of this Agreement. Upon any event of default
hereunder, the Lender shall be entitled to all the rights and remedies of a secured creditor with
respect to such Collateral as provided for in the Uniform Commercial Code as in effect in the State
of New York.

ARTICLE IV

MISCELLANEOUS 

     SECTION 4.01 Amendments. Etc. No amendment, modification, termination, or waiver of any
provision of any Loan Document to which the Borrower is a party, nor consent to any departure by
the Borrower from any Loan Document to which it is a party, shall in any event be effective unless
the same shall be in writing and signed by the Lender, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given.

     SECTION 4.02 Notices, Etc. All notices and other communications provided for under this
Agreement and under the other Loan Documents to which the Borrower is a party shall be in writing
(including telegraphic communication) and mailed or telegraphed or delivered, if to the Borrower,
at its address at 75 Town Centre Drive, Rochester, NY 14623, Attention: Grant Russell, Chief
Operating Officer, and if to the Lender, at his Office or, as to each party, at such other address
as shall be designated by such party in a written notice to the other party complying as to
delivery with the terms of this Section 4.02. All such notices and communications shall, when
mailed or telegraphed, be effective when deposited in the mails or delivered to the telegraph
company, respectively, addressed as aforesaid.

     SECTION 4.03 No Waiver; Remedies. No failure on the part of the Lender to exercise, and no
delay in exercising, any right, power, or remedy under any Loan Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any right under any Loan Documents preclude
any other or further exercise thereof or the exercise of any other right. The remedies provided in
the Loan Documents are cumulative and not exclusive of any remedies provided by law.

     SECTION 4.04 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Borrower and the Lender and their respective successors and assigns, except that the
Borrower may not assign or transfer any of its rights under any Loan Document to which the Borrower
is a party without the prior written consent of the Lender.

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     SECTION 4.05 Costs, Expenses, and Taxes. The Borrower agrees to pay on demand all costs and
expenses in connection with the preparation, execution, delivery, filing, recording, and
administration of any of the Loan Documents, including, without limitation, the reasonable fees and
out-of-pocket expenses of counsel for the Lender, and any local counsel who may be retained by said
counsel, with respect thereto and with respect to advising the Lender as to his rights and
responsibilities under any of the Loan Documents.

     SECTION 4.06 Governing Law. This Agreement the Note and the other Loan Documents shall be
governed by, and construed in accordance with, the laws of the State of New York applicable to
contracts made and performed wholly within such state, without regard to conflict of laws
principles.

     SECTION 4.07 Severability of Provisions. Any provision of any Loan Document which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions of
such Loan Document or affecting the validity or enforceability of such provision in any other
jurisdiction.

     SECTION 4.08 Headings. Article and Section headings in the Loan Documents are included in such
Loan Documents for the convenience of reference only and shall not constitute a part of the
applicable Loan Documents for any other purpose.

     IN WITNESS WHEREOF, the parties hereto have duly caused this Loan Agreement to be executed by
their respective officers thereunto duly authorized as of the date first above written.

	 	 	 	 	 	 	 
	 	 	VUZIX CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Grant Russell
 

Grant Russell
	 	 
	 

	 	Title:
	 	Chief Operating Officer	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Paul Travers	 	 
	 	 	 	 	 
	 	 	Paul Travers	 	 

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EXHIBIT A

NOTE

October __, 2008

Rochester, New York

     FOR VALUE RECEIVED, the undersigned, Vuzix Corporation., a Delaware corporation (the
“Borrower”), DOES HEREBY PROMISE to pay to
the order of Paul Travers (the “Lender”), at its
office at 75 Town Centre Drive, Rochester, NY 14623, in lawful money of the United States and in
immediately available funds, the aggregate unpaid principal amount of all Loans made to the
Borrower by the Lender hereunder and pursuant to the Agreement, ON DEMAND, and to pay interest
(computed on the basis of a year of 360 days) from the date of this Note on the unpaid principal
amount hereof, in like money, at said office, at a rate per annum equal to twelve percent (12%) per
annum. Interest accrued on this Note shall be paid monthly on the first day of each month
commencing December 1, 2008. The principal balance hereof and interest accrued hereon shall be due
and payable in full on December 31, 2010 even if no demand for payment has been made

     The Borrower
hereby authorizes the Lender to endorse on the Schedule annexed to this Note all Loans made to the
Borrower and all payments of principal amounts in respect of such Loans, which endorsements shall,
in the absence of manifest error, be conclusive as to the outstanding principal amount of all
Loans; provided, however, that the failure to make such notation with respect to any Loan or
payment shall not limit or otherwise affect the obligations of the Borrower under the Agreement or
this Note.

     This Note is the Note referred to in a certain Loan Agreement between the Lender and the
Borrower, dated the same date as the date of this Note (the “Agreement”), and capitalized
terms used herein shall have the meanings ascribed to such terms in the Agreement. The Agreement,
among other things, contains provisions for prepayments on account of the principal of this Note
prior to demand upon the terms and conditions specified in the Agreement.

     This Note shall be governed by the laws of New York applicable to contracts made and performed
wholly within such state, without regard to conflict of laws principles.

	 	 	 	 	 	 	 
	 	 	Vuzix Corporation	 	 
	 

	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Grant Russell
	 	 
	 

	 	Title:
	 	Chief Operating Officer	 	 

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SCHEDULE TO NOTE

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of	 	 	 	 	 	 
	 	 	Amount of	 	Interest	 	Amount of Principal	 	Unpaid Principal	 	Name of Person
	Date	 	Loan	 	Paid	 	Paid	 	Balance of Note	 	Making Notation
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 
	      
	 	 	 	 	 	 	 	 	 	 

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SCHEDULE
B

All of the Borrower’s personal property of every kind and nature and wherever located, now owned or
hereafter acquired, and the proceeds thereof, as follows:

	(a)	 	All of Borrower’s Accounts (as defined in Section 9-106 of the Uniform Commercial Code as in
effect in the State of New York (the “UCC”)) whether secured or unsecured, now owned or
hereafter acquired, and the proceeds thereof (the “Accounts”);
	 
	(b)	 	All of Borrower’s Instruments (as defined in Section 9-105(1)(i) of the UCC), now owned or
hereafter acquired, and the proceeds thereof;
	 
	(c)	 	All of Borrower’s Chattel Paper (as defined in Section 9-105(1)(b) of the UCC), now owned or
hereafter acquired, and the proceeds thereof;
	 
	(d)	 	All of Borrower’s General Intangibles (as defined in Section 9-106 of the UCC), now owned or
hereafter acquired, and the proceeds thereof (the “General Intangibles”);
	 
	(e)	 	All of Borrower’s Inventory (as defined in Section 9-109(4) of the UCC), now owned or hereafter
acquired, and the proceeds thereof (the “Inventory”);
	 
	(f)	 	All of Borrower’s Equipment (as defined in Section 9-109(2) of the UCC) and all attachments,
accessories, parts or tooling relating thereto and all replacements for the foregoing, in each case
now owned or hereafter acquired, and the proceeds thereof (the “Equipment”);
	 
	(g)	 	All of Borrower’s Insurance with respect to the Inventory, General Intangibles, Fixtures,
Equipment and Goods against risks of fire, theft or any other physical damage or loss, now owned or
hereafter acquired, and the proceeds thereof, and all insurance insuring the payment of Accounts,
now owned or hereafter acquired, and the proceeds thereof;
	 
	(h)	 	All goodwill, trade names, trademarks, trade secrets, know-how, inventions, patents, patent
applications, copyrights and other intellectual property, now owned or hereafter acquired by
Borrower, or any rights of Borrower with respect to any of the foregoing, now owned or hereafter
acquired, whether or not any of the same are covered in other categories of this Schedule, and the
proceeds thereof;
	 
	(i)	 	All of Borrower’s Documents of Title (as defined in Section 1-201-(15) of the UCC), now owned
or hereafter acquired, and the proceeds thereof;

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	(j)	 	All of Borrower’s Goods (as defined in Section 2-105(1) of the UCC), now owned or hereafter
acquired, whether or not any of the same are covered in other categories of this Schedule, and the
proceeds thereof (the “Goods”);
	 
	(k)	 	All of Borrower’s Fixtures (as described in Section 9-313 of the UCC), now owned or hereafter
acquired, and the proceeds thereof (the “Fixtures”);
	 
	(l)	 	All of Borrower’s Investment Property (as defined in Section 9-115 of the UCC), now owned or
hereafter acquired, and all proceeds and General Intangibles arising therefrom (the “Investment
Property”);
	 
	(m)	 	All of Borrower’s right, title and interest in all of its books, records, ledger sheets, files
and other data and documents, now owned or hereafter existing, relating to any of the items listed
in Sections (a) through (k) above;
	 
	(n)	 	All of Borrower’s rights as a seller of goods under Article 2 of the UCC with respect to the
Inventory, and as to goods represented by or securing any of the Accounts, all of Debtor’s rights
therein including, without limitation, rights of stoppage in transit, replevin and reclamation; and
	 
	(o)	 	All guarantees, mortgages and real or personal property leases or other written or oral
agreements or property securing or relating to any of the items referred to above, or acquired for
the purpose of securing and enforcing any of such items; and
	 
	(p)	 	All sums at any time standing to Borrower’s credit on Secured Party’s books, and all moneys,
securities and other property of Borrower at any time in Secured Party’s possession or in which
Lender has a lien or security interest, and all proceeds thereof.

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