Document:

Form of Exchange Agreement - Series B Convertible Preferred Stock

 Exhibit 10.21 
 EXCHANGE OFFER AGREEMENT 
 This EXCHANGE OFFER
AGREEMENT, dated as of December 29, 2009 (the “Agreement”) is made and entered into by and among Vringo, Inc., a Delaware corporation (the “Company”), Vringo (Israel) Ltd., a corporation organized under the laws of Israel
and a wholly-owned subsidiary of the Company (the “Subsidiary”), and each of the undersigned holders (each a “Series B Holder”, and collectively, the “Series B Holders”) of the Series B Convertible Preferred Stock of
the Company, par value $0.01 per share (the “Series B Shares”). 
 RECITALS 
 WHEREAS, the Series B Holders currently hold all of the 4,592,794 issued and outstanding shares of the Series B Shares and warrants (the
“Series B Warrants”) to purchase 1,201,471 shares of Common Stock (as defined herein); 
 WHEREAS, the Company, the
Subsidiary, the Series B Holders and the holders of the Series A Convertible Preferred Stock of the Company, par value $0.01 per share (the “Series A Holders”) are parties to that certain Investor Rights Agreement dated July 30, 2007
(the “Investor Rights Agreement”); 
 WHEREAS, the Company, the Series B Holders, the Series A Holders and the holders
of the common stock of the Company, par value $0.01 per share (the “Common Stock”) have entered into that certain Right of First Refusal, Co-Sale and Voting Agreement dated July 30, 2007 (the “ROFR Agreement”, and
collectively with the Investor Rights Agreement, the “Series B Agreements”); 
 WHEREAS, the Company has engaged Maxim
Group LLC (“Maxim”) to act as the Company’s placement agent in connection with a private placement of convertible notes and warrants of the Company in a minimum amount of $2,500,000 and a maximum amount of $3,000,000 (the
“Offering”); 
 WHEREAS, the Company anticipates that subsequent to the consummation of the Offering, it will conduct
an underwritten initial public offering of newly issued units, each comprised of one share of Common Stock and two warrants, with each warrant representing a right to purchase one share of Common Stock at an exercise price equal to 110% of the IPO
Offering Price (as defined below) (“Units”), at an offering price that is anticipated to be $5.00 per Unit (the actual offering price, the “IPO Offering Price”), following the effective date of, and pursuant to, a registration
statement that will be filed with the Securities and Exchange Commission (the “SEC”) with respect to the initial public offering of the Units (the “Registration Statement”) and that provides for the listing of such Units on the
Nasdaq Capital Market, the NYSE Amex, the OTC Bulletin Board or other similarly recognized national trading platform (the “IPO”); 
 WHEREAS, immediately prior to the IPO, the Company will execute a 1 for 6 reverse split of all shares of Common Stock in the event the IPO Offering Price is greater than or equal to $4.00 and a 1 for 6.4
reverse split in the event the IPO Offering Price is less than $4.00 (the “Reverse Split”); 

 WHEREAS, the Company and the Series B Holders desire to conduct a share exchange pursuant to
Section 3(a)(9) of the Securities Act of 1933, as amended (the “Act”), pursuant to which the Series B Holders will exchange all of their currently issued and outstanding Series B Shares for shares of Common Stock; and 
 WHEREAS, the Company, the Subsidiary and the Series B Holders executing this Agreement, constituting at least 75% of the outstanding Series
B Shares, desire to terminate the Series B Agreements and accept the consideration set forth herein in lieu of the rights set forth in the Series B Agreements. 
 NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises, representations and covenants and agreements herein contained, and for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  

	 	1.	Effective Date. The terms and conditions of this Agreement shall be deemed effective as of the date of the consummation of the IPO (the “Effective
Date”). This Agreement shall automatically terminate and become null and void upon the earliest of (i) December 31, 2009 if the Company fails to close the Offering, as contemplated by the term sheet attached hereto as Exhibit
A, on or before such date, (ii) January 31, 2010 if the Registration Statement is not filed with the SEC on or before such date, (iii) August 10, 2010 if the SEC has not declared the Registration Statement effective on or
before such date and (iv) the date on which the Company files with the SEC an application to withdraw the Registration Statement. 

  

	 	2.	Exchange of Shares. On the Effective Date and subject to the Reverse Split thereafter and the terms and conditions of this Agreement, the Series B Holders hereby
covenant and agree to exchange and transfer the 4,592,794 Series B Shares they hold to the Company and the Company hereby covenants and agrees to issue to the Series B Holders shares of Common Stock (“New Shares”) in the following amounts
and as set forth opposite each Series B Holder’s name in Exhibit B: 

  

	 	a.	If the IPO Offering Price is greater than $4.49, in a ratio of 1.33 New Shares for each Series B Share so exchanged for an aggregate amount of 6,108,416 New Shares;

	 	b.	If the IPO Offering Price is equal to or greater than $4.00 and equal to or less than $4.49, in a ratio of 1.40 New Shares for each Series B Share so exchanged for an
aggregate amount of 6,429,912 New Shares; and 

	 	c.	If the IPO Offering Price is less than $4.00, in a ratio of 1.55 New Shares for each Series B Share so exchanged for an aggregate amount of 7,118,831 New Shares.

 Prior to the consummation of the IPO, the Company shall not effect any stock dividend, stock
split, stock distribution or combination, subdivision, reclassification or other corporate actions having a similar effect with respect to the Series B Shares or the Common Stock, other than the Reverse Split, without the consent of a Series B
Holders holding a majority of the Series B Shares. 
 The Company represents and warrants that, as of the Effective Date, the New
Shares will be duly authorized and, upon issuance, exchange and transfer as contemplated by this Agreement, the New Shares will be validly issued, fully paid and non-assessable shares of the Company. 
  

	 	3.	Lockup of Securities. The Series B Holders hereby covenant and agree to comply with the lock-up provisions set forth in Exhibit D. 

  

	 	4.	Termination of Series B Agreements and Series B Warrants. On the Effective Date, the Series B Agreements and the Series B Warrants shall be terminated and
cancelled and be of no further force or effect. 

  

	 	5.	Registration Rights. 

  

	 	a.	As may be requested by Warburg Pincus Private Equity IX, L.P. (“Warburg Pincus”) or any transferees thereof (each of Warburg Pincus and any such transferees,
a “Holder”), the Company will, at the Company’s expense, qualify for registration on, and will promptly file with the SEC within 270 days (the “Registration Deadline”) after the IPO, a Form S-3 or any comparable or successor
form or forms or any similar short-form registration providing for the registration, and the sale on a continuous or delayed basis, of the Registrable Securities (as defined below) pursuant to Rule 415 under the Securities Act (“Registration
Statement”). Notwithstanding the foregoing, the Company shall not be required to effect or take any action to effect a Registration Statement pursuant to this Section 5(a) prior to its filing of a registration statement (“Bridge
Registration Statement”) covering the Common Stock issuable upon conversion or exercise of the securities issued in the Offering (the “Bridge Shares”) unless the filing of the Registration Statement will not limit the number of Bridge
Shares which may be registered in a Bridge Registration Statement. In connection with any such Registration Statement, the Company agrees to comply with the registration procedures set forth on Exhibit C attached hereto. Upon filing the Registration
Statement, the Company will, if applicable, cause such Registration Statement to be declared effective, will keep such Registration Statement effective with the SEC at all times (including by filing a new Registration Statement if such Registration
Statement automatically expires), and shall cooperate in amending or supplementing the prospectus statement related to such Registration Statement as may be requested by any Holder or as otherwise required, until the Holders who would require such
registration to effect a sale of the Registrable Securities no longer hold the Registrable Securities or the Registrable Securities may be sold without volume restrictions pursuant to Rule 144 promulgated under the Act. The Company will use its
commercially reasonable efforts to remain eligible to use Form S-3 registration or a similar short-form registration. The term “Registrable Securities” shall mean all Common Stock issued to Warburg Pincus pursuant to this Agreement.

	 	b.	In connection with any registration under this Section 5, the Company shall, without limitation as to time, indemnify and hold harmless, to the fullest extent
permitted by law, each Holder, the officers, directors, agents, partners and employees of each of them, each Person who controls each such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act),
the officers, directors, agents, partners and employees of each such controlling person and any financial or investment adviser (each, an “Registration Indemnified Party”), to the fullest extent lawful, from and against any and all losses,
claims, damages, liabilities, actions or proceedings (whether commenced or threatened), reasonable out-of-pocket costs (including, without limitation, reasonable costs of preparation and reasonable attorneys’ fees) and reasonable out-of-pocket
expenses (including reasonable expenses of investigation) (collectively, “Registration Losses”), as incurred, arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration
Statement, prospectus or form of prospectus or in any amendment or supplements thereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading, except to the extent that the same arise out of or are based upon information furnished in writing to the Company by such Registration Indemnified Party or the related Holder expressly for use therein
or (ii) any violation by the Company of any federal, state or common law rule or regulation applicable to the Company and relating to action required of or inaction by the Company in connection with any such Registration Statement.

  

	 	c.	 Each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such registration, qualification or
compliance is being effected, indemnify and hold harmless the Company, each of its directors and officers, legal counsel and accountants, and each underwriter, if any, of the Company’s securities covered by such a registration statement, each
person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, each other such Holder and each of its officers and directors, and each person controlling such other Holder, against all reasonable
out-of-pocket expenses, claims, losses, damages and liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based on (i) any untrue statement or alleged untrue statement of a material fact contained in any
prospectus, offering circular or other document, including any related registration statement, notification or the like, incident to any such registration, qualification or compliance or (ii) any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and such Holders, directors, officers, legal counsel, accountants, persons, underwriters or control persons for
any reasonable out-of-pocket legal or any other reasonable out-of-pocket expenses

	 	 
reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability, or action, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the Company by
such Holder under an instrument duly executed by such Holder and stated to be furnished by such Holder specifically for use therein; provided, however, that the obligations of such Holder hereunder shall not apply to amounts paid in settlement of
any such claims, losses, damages or liabilities (or actions in respect thereof) if such settlement is effected without the consent of such Holder (which consent shall not be unreasonably withheld); and provided that in no event shall any indemnity
under this Section 5(c) exceed the net proceeds from the offering received by such Holder. 

  

	 	6.	Waiver. On the Effective Date, each party hereby waives, releases, acquits, and forever discharges the other party and its respective agents, representatives,
officers, directors, and employees from any and all claims, causes of action, liability or damages of any kind, whether past or present, known or unknown, real or imagined, asserted or unasserted, foreseen or unforeseen that each party could have
asserted in connection with the Series B Agreements. Each party represents and warrants that it has not and will not assign, transfer, or dispose of, in any manner, any interest (either in whole or in part) in any claims, causes of action, liability
or damages that are the subject of the foregoing sentence. 

  

	 	7.	Condition Precedent. It shall be a condition precedent to the obligations of the parties to consummate this Agreement that the Company enter into an agreement
with the Series A Holders that is substantially similar to this Agreement and that the Company deliver a copy of such executed agreement to the Series B Holders. 

  

	 	8.	Entire Agreement. This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter thereof and merges and supersedes
all prior discussions, agreements and understandings of any and every nature among them. 

  

	 	9.	Counterparts; Governing Law. This Agreement may be executed in one or more counterparts, which taken together shall constitute one and the same instrument. This
Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. 

 [SIGNATURE
PAGES FOLLOW] 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by
their duly authorized representatives as of the date first written above. 
  

			
	VRINGO, INC.
		
	By:	 	 
	 Name:
 Title:

	
	VRINGO (ISRAEL) LTD.
		
	By:	 	 
	 Name:
 Title:

	
	Series B Holder
	
	  
	Name:Employment Agreement - Andrew Perlman

 Exhibit 10.22 
 [Vringo letterhead] 
 March 18, 2010 
 Andrew Perlman 
 75 Wall St. Apt. 36-F 

New York, NY 10005 
  

	 	Re:	Offer Letter 

 Dear Andrew:

 On behalf of Vringo, Inc. (the “Company”), I am pleased to share with you this offer letter for the position
as President of the Company. 
 1. Position. You will serve in a full-time capacity as President of the Company
and will retain your membership on the Board of Directors of the Company (the “Board”). As President, you will be responsible for managing operations of the Company, with direct responsibility for content strategy and contracts,
corporate marketing including brand management, public relations, lead generation and customer acquisition and strategic partnerships with large content aggregators, ringtone and ringback players. You will report directly to the Company’s Chief
Executive Officer and the Board, or as otherwise directed by the Board. 
 2. Start Date. Your effective date of
employment with the Company will be April 12, 2010 (the “Effective Date”). 
 3. Salary and
Bonus. You will be paid a salary bi-weekly at the annual rate of $175,000 (the “Salary”) from which appropriate deductions and withholdings shall be made, in accordance with the Company’s standard payroll practices. You
may also receive an annual bonus of an amount to be determined by the Board or its Compensation Committee. You will receive, at the end of each quarter, an advance of $5,000 towards this annual sum. 
 4. Medical and Other Benefits. As a Company employee, you will be eligible for standard health benefits effective the first
day of the first month subsequent to the Effective Date and other standard benefits provided to employees of the Company if and when enacted. 
 5. Options to Purchase Common Stock. 
 A. Subject to the approval of
the Board, the Company will grant you the following two stock options: 
 (i) an option to purchase seventy thousand
(70,000) shares of common stock of the Company (“Common Stock”) at an exercise price of US $0.01 per share (the “A Option Shares”); and 
 (ii) an option to purchase ninety thousand (90,000) shares of Common Stock at an exercise price per of US $5.50 per share (the
“B Option Shares”). 
 B. The A Option Shares and B Option Shares will be subject to the terms and conditions
of the Company’s Amended and Restated 2006 Stock Option Plan, as amended, and the stock option agreements between you and the Company (“Option Agreements”), all of which documents are incorporated herein by reference.

 Andrew Perlman 
 March 18, 2010 
 Page 2 of 5 
  

 C. The A Option Shares will vest over a three (3) year period from the consummation
of the initial public offering of the Company (the “IPO Date”) according to the following schedule: 33% of the A Option Shares will vest on the first anniversary of the IPO Date, and the remaining A Option Shares will vest in equal
annual installments for the two (2) years thereafter. Vesting of the A Option Shares will be subject to your continued employment with the Company under the terms of this offer letter on the applicable vesting date. 
 D. The B Option Shares will vest over a four (4) year period from the Effective Date according to the following schedule: 25% of the B
Option Shares will vest on the first anniversary of the Effective Date, and the remaining B Option Shares will vest in equal quarterly installments for the three (3) years thereafter. Vesting of the B Option Shares will be subject to your
continued employment with the Company under the terms of this offer letter on the applicable vesting date. 
 E. Upon a Change
of Control (as defined herein), fifty percent (50%) of the unvested portion of each of the A Option Shares and the B Option Shares will automatically and immediately become fully vested. For purposes of this Section 5.E., “Change of
Control” shall mean (i) the sale, conveyance, exchange, license or other transfer of all or substantially all of the intellectual property or assets of the Company, (ii) any acquisition of the Company by means of a consolidation,
stock exchange, merger or other form of corporate reorganization of the Company with any other corporation or entity in which the Company’s stockholders prior to the consolidation or merger own less than a majority of the voting securities of
the surviving entity or (iii) any transaction or series of related transactions following which the Company’s stockholders prior to such transaction or series of related transactions own less than a majority of the voting securities of the
Company (excluding the issuance of equity securities solely for capital raising purposes); provided that in each case that a reorganization by the Company shall not constitute a Change in Control. 
 F. In addition you will be entitled to participate in the Company’s long term incentive plan as and when approved by the Board.

 6. Confidentiality Agreement. During your employment with the Company, you will be privy to confidential and
proprietary information and trade secrets of the Company. That information and material has been developed and acquired by the Company over time through the expenditure of considerable resources, and provides the Company with competitive advantages
over others in the same industry who do not possess such information and material. Accordingly, and consistent with Company practices, you agree, as a condition to your employment with the Company, to sign the Company’s standard form of
Employment, Confidential Information and Inventions Assignment Agreement (the “Confidentiality Agreement”). In addition, by signing this offer letter, you hereby represent and warrant to the Company that you have no commitments or
obligations inconsistent with your obligations to the Company, including any commitments or obligations made or owed to your prior employers, and that you will indemnify the Company for any reasonable expenses it may incur defending against any
asserted claims. 
  

 2 

 Andrew Perlman 
 March 18, 2010 
 Page 3 of 5 
  

 7. At-Will Employment. 
 A. Your employment with the Company will be “at will,” meaning that either you or the Company will be entitled to terminate your
employment at any time and for any reason, with or without cause. Notwithstanding the foregoing, in the event you terminate your employment without Good Reason, you shall be required to provide the Company with three months notice of your intention
to leave the Company. Failure to provide the Company with such notice shall result in (a) the immediate forfeiture of the unvested portion of each of the A Option Shares and B Option Shares and (b) notwithstanding any provision in the
stock option agreement relating to the A Option Shares and B Option Shares, the vested portion of each of the A Option Shares and B Option Shares shall cease to be exercisable subsequent to the date your employment with the Company is terminated.
Any contrary representations which may have been made to you are superseded by this offer. The foregoing is the full and complete agreement between you and the Company on this term. Although your job duties, title, compensation and benefits, as well
as the Company’s human resources policies and procedures, may, to the extent permitted under this letter agreement, change from time to time, the “at will” nature of your employment may only be changed in an express written agreement
signed by you and a duly authorized officer of the Company. 
 B. As used herein, “Good Reason” means
(a) the Company’s failure to pay your salary to you within ten (10) days of your standard pay day, which failure is not cured (if curable) within ten (10) days of the Company’s receipt of written notice of breach from you;
(b) the failure of the Company to grant you the options to purchase the A Option Shares or B Option Shares within ninety (90) days of the date hereof; or (c) the material diminution of the overall level of your responsibilities,
duties, powers or authorities. 
 8. Outside Activities During Employment; Non-Competition and Non-Solicitation.

 A. During your employment with the Company, you will devote all of your business time and best effort to the performance of
services for the Company. Notwithstanding the foregoing, you may conduct activities for the following ventures provided that such activities are conducted on your own time and do not interfere in any way with your responsibilities to the Company:
(i) Webworks Holdings, LLC, (ii) AirWorks Funding, LLC, (iii) Spalding Rockwell Music, LLC and (iv) Waterfall Mobile, Inc. 
 B. During the term of your employment with the Company and for a period of twelve (12) months thereafter (the “Restricted Period”), you will not, directly or indirectly, engage or
participate in any Competing Business (as defined below). 
 C. In addition, during the Restricted Period, you will not,
directly or indirectly, either for yourself or any other person or entity: (a) solicit, attempt to solicit, aid in the solicitation of or accept any employment, consulting or orders from any person or entity to purchase products or services
from any Competing Business; (b) solicit, attempt to solicit or aid in the solicitation of any person or entity to cease doing business with or adversely alter its business relationship with the Company, if such person or entity has had any
business relationship (including, without limitation, as a customer, supplier, licensor or licensee) with the Company any time during the term of your employment with the Company; or (c) solicit or hire any person or entity who performs
services for the Company material to its business (whether as a director, officer, employee, independent contractor or agent), or who shall have performed said services for the Company within the prior twelve (12) months. 
  

 3 

 Andrew Perlman 
 March 18, 2010 
 Page 4 of 5 
  

 D. For purposes of this Section 8, a “Competing Business” shall
mean any person or entity that competes with the business of the Company as such is currently conducted or as such is conducted during the term of your employment with the Company, including any prospective businesses of the Company which were known
by you to be actively under development during the term of your employment with the Company. 
 9.
Withholding Taxes. All forms of compensation referred to in this letter are subject to reduction to reflect applicable taxes, FICA and all other amounts required to be withheld pursuant to any applicable law. 
 10. Entire Agreement. This letter and the agreements referred to in this letter contain all of the terms of your
employment with the Company and supersede any prior understandings or agreements, whether oral or written, between you and the Company with the exception of any agreements in connection with your service on the Board. 
 11. Amendment and Governing Law. This letter agreement may not be amended or modified except by an express written
agreement signed by you and a duly authorized officer of the Company. The terms of this letter agreement and the resolution of any disputes will be governed by the laws of the State of New York without regard to the principles of conflicts of laws.

 12. Headings. The headings of paragraphs of this letter agreement are inserted for convenience only and
shall not in any way affect the meaning or construction of any provision herein. 
 13. Counterparts. This
letter agreement may be executed in multiple counterparts, each of which will be deemed to be an original, but all of which together will constitute but one and the same instrument. 
 [This space left blank intentionally; signature page follows] 
  

 4 

 Andrew Perlman 
 March 18, 2010 
 Page 5 of 5 
  

 Andrew, we are delighted to extend this offer to you until March 31, 2010 and look
forward to working with you. To indicate your acceptance of the Company’s offer, please sign and date this letter in the space provided below and return it to me, along with a signed and dated copy of the Confidentiality Agreement. 

 

	
	Very truly yours,
	
	/s/ Jonathan Medved
	Name: Jonathan Medved
	Title: Chief Executive Officer

  

	
	 ACCEPTED AND AGREED TO this
 24th day of March, 2010

	
	/s/ Andrew Perlman
	Andrew Perlman

  

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]