Exhibit 10.40


 


[ ***] = Certain confidential information contained in this
document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange
Act of 1934, as amended.


 


EXECUTION VERSION


 


PATENT SECURITY AGREEMENT


 


THIS PATENT SECURITY
AGREEMENT, dated as of February 26, 2019, is made by each of the entities listed on the signature pages hereof (each a “Grantor”
and, collectively, the “Grantors”), in favor of POST ROAD ADMINISTRATIVE LLC, a Delaware limited liability
company (“Post Road”), as collateral agent (in such capacity, together with its successors and assigns
in such capacity, the “Collateral Agent”) for the Lenders and the other Secured Parties.


 


WITNESSETH:


 


WHEREAS, PARETEUM CORPORATION,
a Delaware corporation (the “Borrower”), any Subsidiaries of Borrower that are Guarantors or become Guarantors
pursuant to Section 8.10 or Section 8.17 of the Credit Agreement (collectively, the “Guarantors”,
and, together with Borrower, the “Credit Parties”), the Lenders from time to time party thereto (the
“Lenders”), Post Road, as administrative agent for the Lenders (in such capacity, together with its successors
and assigns in such capacity, the “Administrative Agent”) and the Collateral Agent for the Lenders, have
entered into a Credit Agreement, dated as of February 26, 2019 (as amended, restated, amended and restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”);


 


WHEREAS, all of the
Grantors are party to a Security Agreement of even date herewith in favor of the Collateral Agent (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Security Agreement”), pursuant to
which the Grantors are required to execute and deliver this Patent Security Agreement;


 


NOW, THEREFORE, in
consideration of the promises and to induce the Lenders and the Collateral Agent to enter into the Credit Agreement and to induce
the Lenders to make their respective extensions of credit to the Borrower thereunder, each Grantor hereby agrees with the Collateral
Agent as follows:


 


Section 1. Defined
Terms. Capitalized terms used herein without definition are used as defined in the Security Agreement.


 


Section 2. Grant
of Security Interest in Patent Collateral. Each Grantor, as collateral security for the prompt and complete payment and performance
when due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations of such Grantor, hereby mortgages
and pledges to the Collateral Agent for the benefit of the Secured Parties, and grants to the Collateral Agent for the benefit
of the Secured Parties a Lien on and security interest in, all of its right, title and interest in, to and under the following
Collateral of such Grantor (the “Patent Collateral”):


 


(a)       all
of its Patents and all Patent Licenses providing for the grant by or to such Grantor of any right under any Patent, including those
referred to on Schedule 1 hereto;


 


(b)       all
reissues, reexaminations, continuations, continuations-in-part, divisionals, and extensions of the foregoing; and


 


(c)       all
income, royalties, proceeds and liabilities at any time due or payable or asserted under and with respect to any of the foregoing,
including all rights to sue and recover at law or in equity for any past, present and future infringement, misappropriation, violation
or other impairment thereof.


 




     


     


    

 


[ ***] = Certain confidential information contained in this
document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange
Act of 1934, as amended.


 


EXECUTION VERSION


 


Section 3. Security
Agreement. The security interest granted pursuant to this Patent Security Agreement is granted in conjunction with the security
interest granted to the Collateral Agent pursuant to the Security Agreement and each Grantor hereby acknowledges and agrees that
the rights and remedies of the Collateral Agent with respect to the security interest in the Patent Collateral made and granted
hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein
as if fully set forth herein. In the event that any provision of this Patent Security Agreement conflicts with any provision of
the Security Agreement, the Security Agreement shall govern.


 


Section 4. Grantor
Remains Liable. Each Grantor hereby agrees that, anything herein to the contrary notwithstanding, such Grantor shall assume
full and complete responsibility for the prosecution, defense, enforcement or any other necessary or desirable actions in connection
with such Grantor’s Patents subject to a security interest hereunder.


 


Section 5. Counterparts.
This Patent Security Agreement may be executed in any number of counterparts and by different parties in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart.


 


Section 6. Governing
Law. THIS PATENT SECURITY AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REFERENCE TO CONFLICTS OF LAW PROVISIONS (OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). In addition, the provisions of Section 8.6, 8.7, 8.8
and 8.12 of the Security Agreement are incorporated herein by reference, mutatis mutandis.


 


[SIGNATURE PAGES FOLLOW]


 




     


     


    

 


[ ***] = Certain confidential information contained in this
document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange
Act of 1934, as amended.


 


IN WITNESS
WHEREOF, the Grantor has caused this Patent Security Agreement to be executed and delivered by its duly authorized officer as of
the date first set forth above.


 


	 	GRANTOR:
	 	 
	 	iPASS IP LLC
	 	 
	 	By:	/s/ Denis McCarthy
	 	Name:	Denis McCarthy
	 	Title:	Director/CEO


 




     


     


    

 


[ ***] = Certain confidential information contained in this
document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange
Act of 1934, as amended.


 


[Patent Security Agreement – Signature
Page]


 




     


     


    

 


[ ***] = Certain confidential information contained in this
document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange
Act of 1934, as amended.


 


SCHEDULE I


 


TO


 


PATENT SECURITY AGREEMENT


 


[***]