Exhibit 10.9
 
EXECUTION VERSION
 
PATENT LICENSE AGREEMENT
 
THIS PATENT LICENSE AGREEMENT (the “Agreement”) is made and entered into
effective as of January 29, 2015 by and among:
 
Marathon Patent Group, Inc., a Nevada corporation having its principal place of
business located at 11100 Santa Monica Blvd. Suite 380, Los Angeles, CA 90025
(the “Issuer”), the entities listed on Schedule I hereto (together with the
Issuer, the “Licensor”); and
 
DBD Credit Funding LLC, an entity incorporated under the laws of Delaware having
its principal place of business located at 1345 Avenue of the Americas, 46th
Floor, New York, NY 10105 (“Licensee”).
 
Licensor and Licensee are sometimes referred to herein individually as a “Party”
and collectively as the “Parties”.
 
WHEREAS, reference is made to the Revenue Sharing and Securities Purchase
Agreement, dated as of the date hereof (as it may be amended, restated,
supplemented or otherwise modified from time to time, the “Revenue Sharing and
Securities Purchase Agreement”), by and among the Licensor, the Purchasers
(including the Licensee) and the Licensee, acting as the Collateral Agent and
the Security Agreement, dated as of the date hereof (as it may be amended,
restated, supplemented or otherwise modified from time to time, the “Security
Agreement”), by and among the Grantors (as defined therein, including Licensor)
and the Licensee, acting as the Collateral Agent;
 
WHEREAS, in consideration of the investments set forth in the Revenue Sharing
and Securities Purchase Agreement, Licensor agreed to grant certain rights,
including rights to license patents and patent applications, to the Licensee for
the benefit of the Secured Parties; and
 
WHEREAS, Licensor is the owner of certain patents and patent applications
identified in Schedule I(a) of the Revenue Sharing and Securities Purchase
Agreement, which Schedule I(a) shall be an integral part of this Agreement; and
 
NOW, THEREFORE, in consideration of the premises and the mutual covenants and
agreements contained herein, the Parties hereto agree as follows:
 
1.
Definitions

 
In this Agreement, the following terms shall have the assigned
meaning.  Capitalized terms used in this Agreement but not defined herein shall
have the meaning given to them in the Revenue Sharing and Securities Purchase
Agreement and/or the Security Agreement, as applicable.
 
“Licensed Patents” shall mean the Patents listed on Schedule I(a) of the Revenue
Sharing and Securities Purchase Agreement.
 
2.
License

 
2.1
Subject to the terms and conditions herein and in the Revenue Sharing and
Securities Purchase Agreement, Licensor hereby grants to Licensee a
non-exclusive, transferrable, sub-licensable, divisible, irrevocable, fully
paid-up, royalty-free, and worldwide license to the Licensed Patents, including,
but not limited to, the rights to make, have made, market, use, sell, offer for
sale, import, export and distribute the inventions disclosed in the Licensed
Patents and otherwise exploit the Licensed Patents in any lawful manner in
Licensee’s sole and absolute discretion solely for the benefit of the Secured
Parties (“Patent License”), provided that Licensee shall only use the Patent
License following acceleration of the Note Obligations.

 
2.2
If Licensee elects to grant any sublicense(s) pursuant to the Patent License in
Section 2.1, Licensee shall provide written notice within fifteen days of
entering into any sublicense agreement.

 

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3.
Representations, Warranties and Acknowledgements

 
3.1
Each Party represents, warrants and covenant to the other that the execution,
delivery and performance of this Agreement is within each Party's powers and has
been duly authorized.

 
3.2
Licensor hereby represents, warrants and covenant that it is the sole and
exclusive owner of all rights, title and interest in and to the Licensed
Patents.

 
3.3
EXCEPT AS EXPRESSLY PROVIDED HEREIN, NEITHER PARTY MAKES ANY WARRANTIES OF ANY
KIND, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, AND EACH PARTY
SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING ANY WARRANTIES OF
MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE OR THAT
ARISE BY COURSE OF DEALING OR BY REASON OF CUSTOM OR USAGE IN THE TRADE, TO THE
MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW.

 
3.4
Notwithstanding anything to the contrary in this Agreement, no Party shall be
liable to the other or any third party for any indirect, incidental, exemplary,
special, punitive or consequential damages (including with respect to lost
revenue, lost profits or savings or business interruption) of any kind or nature
whatsoever suffered by the other Party or any third party howsoever caused and
regardless of the form or cause of action, even if such damages are foreseeable
or such party has been advised of the possibility of such damages.

 
4.
Infringement

 
Upon request, Licensee shall notify Licensor of any infringement of the Licensed
Patents by third parties of which Licensee become aware.  Licensor shall have
the sole right, at its expense, to bring any action on account of any such
infringement of the Licensed Patents, and Licensee shall reasonably cooperate
with Licensor, as Licensor may request and at Licensor’s expense, in connection
with any such action brought by Licensor.
 
5.
Termination

 
5.1
The Parties may terminate this Agreement at any time by mutual written agreement
executed by both Parties provided that any sublicenses granted hereunder prior
to the termination of this Agreement shall survive according to the respective
terms and conditions of such sublicenses.

 
5.2
The Agreement shall end after the later of (x) the expiration of the last
Licensed Patent to expire, (y) the date on which all statutes of limitations
have fully run for bringing infringement claims under the Licensed Patents and
(z) the termination of any sublicensing agreement by Licensee with regards to
the Licensed Patents.  Breach(es), material or otherwise, of this Agreement by
either Party or any other Person will not constitute grounds by which this
Agreement may be terminated, provided that it shall terminate upon payment by
Licensor in full of all obligations under the Revenue Sharing and Securities
Purchase Agreement and the Notes thereunder.

 
6.
Survival

 
Any rights and obligations which by their nature survive and continue after any
expiration or termination of this Agreement will survive and continue and will
bind the Parties and their successors and assigns, until such rights are
extinguished and obligations are fulfilled.
 

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7.
Statement of Intent With Respect to Bankruptcy.

 
The Parties intend that the licenses granted under this Agreement are, and shall
otherwise be deemed to be, for purposes of Section 365(n) of the United States
Bankruptcy Code, 111 U.S.C. § 101, et seq. (“Bankruptcy Code”), licenses of
rights to “intellectual property” as defined in the Bankruptcy Code.
 
8.
Assignment

 
Licensee and each of its sublicensees may, without the consent of Licensor,
assign any or all of their rights and interests, and delegate any or all of
their obligations without restriction.  The rights and obligations of the
Parties hereto shall inure to the benefit of, and be binding and enforceable
upon and by, the respective successors and assigns of the Parties.
 
9.
Entire Agreement and Construction

 
This Agreement along with the pertinent provisions of the Revenue Sharing and
Securities Purchase Agreement and other Documents constitute the sole, final and
entire understanding of the parties hereto concerning the subject matter hereof,
and all prior understandings having been merged herein.  This Agreement cannot
be modified or amended except by a writing signed by the Parties hereto.  The
language used in this Agreement will be deemed to be the language chosen by the
Parties hereto to express their mutual intent, and no rule of strict
construction will be applied against any Party.
 
10.
Severability

 
The provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.  If any provision of this
Agreement, or the application thereof to any Person or any circumstance, is
invalid or unenforceable, (a) a suitable and equitable provision shall be
substituted therefor in order to carry out, so far as may be valid and
enforceable, the intent and purpose of such invalid or unenforceable provision
and (b) the remainder of this Agreement and the application of such provision to
other Persons or circumstances shall not be affected by such invalidity or
unenforceability, nor shall such invalidity or unenforceability affect the
validity or enforceability of such provision, or the application thereof, in any
other jurisdiction.
 
11.
Notices

 
All notices, requests, claims, demands, and other communications hereunder shall
be in writing and shall be given (and shall be deemed to have been duly given
upon receipt) by delivery in person, or by overnight delivery service from a
recognized carrier, to the respective Party as follows:

if to Licensor:

Marathon Patent Group, Inc.
11100 Santa Monica Blvd., Suite 380
Los Angeles, CA 90025
Attn: Chief Executive Officer
Tel: 800-804-1690
Email: doug@marathonpg.com

With a copy to:

Harvey J. Kesner, Esq.
Sichenzia Ross Friedman Ference LLP
61 Broadway, 32nd Floor
New York, NY 10006
Phone: (212) 930-9700
Email: hkesner@srff.com

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if to Licensee:

Yoni Shtein
Vice President
Intellectual Property Finance Group
Fortress Investment Group
One Market Plaza
Spear Tower, 42nd Floor
San Francisco, CA 94105
Phone: 415-284-7415
Email: yshtein@fortress.com
CC: jnoble@fortress.com

With a copy to:

Alyson Allen
Ropes & Gray LLP
Prudential Tower, 800 Boylston Street
Boston, MA 02199-3600
Tel: 617-951-7483
Email: alyson.allen@ropesgray.com

or to such other address as the person to whom notice is given may have
previously furnished to the other Party in writing in the manner set forth
above.
 
12.
Governing Law; Jurisdiction; Venue

 
This Agreement, and all claims arising hereunder or relating hereto, shall be
governed by and construed in accordance with the internal laws of the State of
New York in the United States of America applicable to agreements made and to be
performed entirely within such State, without regard to the conflicts of law
principles of such State that would result in the application of the laws of
another jurisdiction.  In any action or proceeding between either of the Parties
arising out of or relating to this Agreement or any of the transactions
contemplated by this Agreement, each of the Parties (a) irrevocably and
unconditionally consents and submits to the exclusive jurisdiction and venue of
the state and federal courts residing in the State of New York and (b) agrees
that all claims in respect of such action or proceeding must be heard and
determined exclusively in the state or federal courts in the State of New
York.  Each Party shall be entitled to seek injunctive or other equitable
relief, without the posting of a bond, at any time (with or without delivering a
demand notice) whenever the facts or circumstances would permit a Party to seek
such equitable relief in a court of competent jurisdiction.
 
13.
Waiver

 
Except as otherwise provided herein, any failure of any Party to comply with any
obligation, covenant, agreement, or condition herein may be waived by the Party
entitled to the benefits thereof only by a written instrument signed by the
Party granting such waiver; provided, however, that such waiver or failure to
insist upon strict compliance with such obligation, covenant, agreement, or
condition shall not operate as a waiver of, or estoppel with respect to, any
subsequent or other failure.
 
14.
Counterparts

 
This Agreement may be executed in one or more counterparts, each of which will
be an original and both of which will constitute together the same
document.  Counterparts may be signed and delivered by facsimile or PDF file,
each of which will be binding when received by the applicable Party.
 
[Signature Page Follows]
 

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

Licensor:

MARATHON PATENT GROUP, INC.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO

SAMPO IP, LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

RELAY IP, INC.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO

CYBERFONE SYSTEMS, LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

VANTAGE POINT TECHNOLOGY, INC.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO
 
[Signature Page to Patent License Agreement]

 
 

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CRFD RESEARCH, INC.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO

E2E PROCESSING, INC.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO

LOOPBACK TECHNOLOGIES, INC.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO

 
LOOPBACK TECHNOLOGIES II, INC.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO

SIGNAL IP, INC.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO

HYBRID SEQUENCE IP, INC.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO

[Signature Page to Patent License Agreement]

 
 

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PME ACQUISITION LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

SOEMS ACQUISITION CORP.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO
 

IP LIQUIDITY VENTURES ACQUISITION LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

IP LIQUIDITY VENTURES, LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

SARIF BIOMEDICAL ACQUISITION LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

SARIF BIOMEDICAL LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

[Signature Page to Patent License Agreement]

 
 

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SELENE COMMUNICATION TECHNOLOGIES ACQUISITION LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

SELENE COMMUNICATION TECHNOLOGIES, LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

DA ACQUISITION LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

DYNAMIC ADVANCES, LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

CLOUDING CORP.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO

TLI ACQUISITION CORP.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

[Signature Page to Patent License Agreement]

 
 

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TLI COMMUNICATIONS LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

MEDTECH GROUP ACQUISITION CORP.

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: CEO
 

TLIF, LLC

/s/ Doug Croxall
__________________________________________
By:  Doug Croxall
Title: Manager

 
Licensee:

DBD CREDIT FUNDING LLC

/s/ Constantine M. Dakolias
__________________________________________
By:  Constantine M. Dakolias
Title: President
 
 
[Signature Page to Patent License Agreement]

 
 
 
 

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SCHEDULE I

LIST OF GUARANTORS
 
 
The confidential portion has been so omitted and filed separately with the
Securities and Exchange Commission (“SEC”).