Document:

Unassociated Document

 

MARATHON

 

CONSULTING AGREEMENT

 

This CONSULTING AGREEMENT (this “Agreement”) is entered into as of November 18, 2013, by and between Marathon Patent Group, Inc., a Nevada corporation (the “Company”) and Jeff Feinberg, an individual (the “Consultant”).

 

WHEREAS, the Company desires to engage Consultant to provide certain Services (as defined in Section 3 below) for compensation, and Consultant desires to provide the Services to the Company, upon the terms and subject to the conditions set forth below.

 

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.           Engagement.  The Company hereby engages Consultant to provide the Services during the Term (as defined below), and Consultant hereby accepts such engagement to provide the Services during the Term (the “Engagement”).

 

	
2.

	
Term of Engagement; Termination.

 

a.           Term.  The Engagement shall commence on the date hereof and shall terminate on the third anniversary of the date hereof, unless earlier terminated in accordance with Section 2(b) below (the “Term”).

 

b.           Termination.  The Company may terminate this Agreement at any time upon thirty (30) days prior written notice of such termination to the other party.

 

c.           Effect of Termination.  In the event of a termination of this Agreement, (i) Consultant shall still be entitled to receive all of the vested Options (as defined in Section 4) but all unvested Options shall be forfeited and (ii) the Company shall reimburse Consultant for all expenses previously approved by the Company incurred by Consultant in connection with Consultant’s Engagement.

 

3.           Services to be Provided by Consultant.  During the Term, Consultant shall provide services to the Company as of the type set forth on Exhibit A, that are mutually agreed between Consultant and the Company (collectively, the “Services”).   The parties hereto acknowledge and agree that the Services to be provided are in the nature of advisory services only, and Consultant shall not have any responsibility or obligation for execution of the Company’s business or any aspect thereof nor shall the Consultant have any ability to obligate or bind the Company in any respect.  The Consultant shall have control over the time, method and manner of performing the Services. The Company acknowledges and agrees, that Consultant will have obligations to other third parties and other clients that may conflict with Consultants obligations to its clients and that Consultant shall not be obligated to devote any particular number of hours or times to the business of the Company.  

 

  

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4.           Compensation.  In consideration for the Services to be provided hereunder, Consultant shall receive, promptly after the execution of this Agreement, as a consulting fee, an option to acquire 100,000 shares of the Company’s common stock, par value $0.0001 per share (the “Options”) in the form attached as Annex B. The Options shall vest 33% on the one-year anniversary of the date of issuance, 33% on the two-year anniversary of the date of issuance and 34% on the three-year anniversary of the date of issuance. The exercise price shall be based on the closing price of the Company’s common stock on the date the Options grant shall be approved by the Company’s Board of Directors.  The Company agrees to register the exercise of the options in a Registration Statement on Form S-8 and that such registration statement will remain in effect until the expiration of the Options.

 

5.           Expenses.  The Company shall reimburse Consultant for all reasonable expenses incurred by Consultant in providing the Services hereunder no later than thirty (30) days after the submission of an invoice evidencing such expenses in a form reasonably satisfactory to the Company; provided that the Company shall not be obligated to reimburse Consultant for expenses if incurred without the Company’s prior written approval.

 

6.           Independent Contractor Status.  It is understood and agreed that in the performance of the Services hereunder, Consultant is acting as an independent contractor and not as an agent or employee of, or partner, joint venture or in any other relationship with, the Company.  Consultant acknowledges that no income, social security or other taxes will be withheld or accrued by the Company, on Consultant’s behalf.  Neither the Company nor Consultant has the authority to bind the other in any agreement without the prior written consent of the entity to be bound.

 

7.           Confidentiality.  In connection with Consultant’s Engagement, it is contemplated that the Company will not supply Consultant with non-public or proprietary information concerning the Company and its business and operations and affiliates without the prior written agreement of Consultant to receive such Confidential Information (“Confidential Information”).

 

8.           Legal Representation.  Each party hereto acknowledges that it has been represented by independent legal counsel in the preparation of the Agreement. Each party recognizes and acknowledges that counsel to the Company has represented Consultant in connection with various legal matters and each party waives any conflicts of interest or other allegations that it has not been represented by its own counsel.

 

9.           General Terms.

 

a.           Any notice to be given hereunder by a party to any other party hereto may be effectuated in writing by personal delivery, by mail, registered or certified, postage prepaid, with return receipt requested, or by facsimile or other electronic transmission and addressed to such party at the address set forth on the signature page below.

 

b.           If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, that provision shall be deemed modified to the extent necessary to make it valid or enforceable, or if it cannot be so modified, then severed, and the remainder of the Agreement shall continue in full force and effect.

 

  

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c.           All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law thereof.  Each party agrees that all legal proceedings concerning the interpretations and enforcement of this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York for the adjudication of any dispute hereunder or in connection herewith or with respect to the enforcement of this Agreement, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by delivering a copy thereof via overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.

 

d.           This Agreement embodies the entire understanding of the parties hereto with respect to the subject matter hereof, and supersedes all prior or contemporaneous agreements, arrangements or understandings with respect to the subject matter hereof, whether oral or written.

 

e.           This Agreement may not be modified except in a writing signed by the parties hereto.

 

f.           No term of this Agreement may be waived, except in a writing signed by the party hereto entitled to the benefit of such term.

 

g.           Each party hereto represents and agrees that such party is authorized to enter into this Agreement and this Agreement constitutes a legal, valid and binding obligation of such party, enforceable in accordance with its terms.  This Agreement may not be assigned by any party.

 

h.           This Agreement may be executed in one or more counterparts each of which shall be deemed an original and all of which counterparts, taken together, shall constitute one and the same Agreement.

 

 

[SIGNATURE PAGE FOLLOWS]

 

  

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

 

 

	 
Consultant, Jeff Feinberg

	 
Marathon Patent Group, Inc.

	 	 
	 	 
	 
/s/ Jeff Feinberg

	 
By: /s/ Doug Croxall

 
Name: Doug Croxall

Title: Chief Executive Officer

	 	 
	 	 
	
Address for Notice:

 

______________________

______________________

______________________

	
Address for Notice:

 

Doug Croxall, Chief Executive Officer

Marathon Patent Group, Inc.

2331 Mill Road, Suite 100

Alexandria, VA 22314

 

  

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EXHIBIT A

 

Services

 

Consult with and assist the Company in developing and implementing appropriate plans and means for presenting the Company and its business plans, strategy and personnel to the financial community and creating the foundation for subsequent financial public relations efforts.

The Consultant may also decide, at his sole discretion, to attend a non-funding “Road Show” to assist in the presentation of the Company to potential investors.  Additionally, the Consultant may, at the Company’s request, review business plans, strategies, mission statements, budgets, proposed transactions and other plans for the purpose of advising the Company of the public relations implications thereof.

 

 

5agreement.htm

AMENDMENT NO. 1

TO THE

ADVISORY AGREEMENT

THIS AMENDMENT NO. 1 TO THE ADVISORY AGREEMENT (this “Amendment”), dated as of November 21, 2013, is entered into by and between MVP REIT, Inc., formerly MVP Monthly Income Realty Trust, Inc., a Maryland corporation (the “Company”), and MVP Realty Advisor, LLC, a Nevada limited liability company (the “Advisor” and collectively, the “Parties”).

 

W I T N E S S E T H

 

WHEREAS, the Parties entered into that certain Advisory Agreement (the “Advisory Agreement”), which provides for, among other matters, the management of the Company’s day-to-day activities by the Advisor;

WHEREAS, the one-year term of the Advisory Agreement was renewed, effective as of September 9, 2013, for an additional term of one year, and the Advisory Agreement may be renewed for an unlimited number of additional successive one-year terms; and

WHEREAS, the Parties now desire to amend the Advisory Agreement to provide that the Advisor shall not be entitled to reimbursement by the Company for personnel or related employment costs incurred by the Advisor or its affiliates.

 NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the Parties, intending to be legally bound, hereby agree as follows:

ARTICLE I

AMENDMENTS

 

           1.1.           Amendment to Section 9.1.  Each of clauses (iv), (ix), (x) and (xi) of Section 9.1 of the Advisory Agreement is hereby deleted and replaced in its entirety with “Intentionally Omitted.”

1.2.           Amendment to Section 9.1(xii). Section 9.1(xii) of the Advisory Agreement is hereby deleted and replaced in its entirety with the following:

“(xii) Audit, accounting and legal fees, and other fees for professional services provided by third parties relating to the operations of the Company and all such fees incurred at the request, or on behalf of, the Board or any committee of the Board; provided, however, that, pursuant to Section 9.1(xviii) of the Advisory Agreement (as added pursuant to this Amendment), prior to the first anniversary of a Liquidity Event, the Advisor shall not be entitled to reimbursement by the Company for any personnel or related employment costs incurred by the Advisor or its Affiliates in performing the services described in Article 3 hereof, including but not limited to salary and benefits of employees and overhead, whether incurred by the Advisor before or after the date of this Amendment.”

  

  

  

1.3.           Addition of New Section 9.1(xvii). Section 9.1 of the Advisory Agreement is hereby further amended to add the following clause (xviii) immediately after the end of clause (xvi) of Section 9.1 of the Advisory Agreement:

“(xviii)  The following costs incurred by the Advisor or its Affiliates, but only to the extent incurred from and after the first anniversary of the occurrence of any Liquidity Event (as defined hereunder):

(A)           Rent, utilities and other third party costs for office space;

(B)           All out-of-pocket expenses in connection with payments to the Board and meetings of the Board and Stockholders;

(C)           Out-of-pocket expenses of providing services for and maintaining communications with Stockholders, including the cost of preparation, printing, and mailing annual reports and other stockholder reports, proxy statements and other reports required by governmental entities; and

(D)           Personnel and related employment direct costs incurred by the Advisor or its Affiliates from and after the first anniversary of the occurrence of any Liquidity Event (as defined hereunder) (a) in performing the services described in Article 3 hereof or (b) as otherwise approved by the Independent Directors, including but not limited to salary, benefits, burdens and overhead of all employees directly involved in the performance of such services, plus all out-of-pocket costs incurred; provided that no reimbursement shall be made for costs of such employees of the Advisor or its Affiliates to the extent that such employees (A) perform services for which the Advisor receives Acquisition Fees or Disposition Fees or (B) serve as executive officers of the Company.

For purposes of the Advisory Agreement, “Liquidity Event” means any of the following: (i) a listing of the Company’s shares on a national securities exchange, or (ii) a merger, sale of all or substantially all of the Company’s assets or another transaction approved by the Company’s board of directors in which the Company’s stockholders will receive cash and/or shares of a publicly traded company).”

ARTICLE II

MISCELLANEOUS

2.1           Continued Effect. Except as specifically set forth herein, all other terms and conditions of the Advisory Agreement shall remain unmodified and in full force and effect, the same being confirmed and republished hereby. In the event of any conflict between the terms of the Advisory Agreement and the terms of this Amendment, the terms of this Amendment shall control.

 

2.2           Counterparts. This Amendment may be executed two counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and both of which shall together constitute one and the same instrument. This Amendment shall become binding when one or both counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

 

2.3           Governing Law. The provisions of this Amendment shall be construed and interpreted in accordance with the laws of the State of Nevada as at the time in effect, without regard to the principles of conflicts of laws thereof.

 

  

  

  

IN WITNESS WHEREOF, the undersigned have executed this Amendment No. 1 as of the date first written above.

 

MVP REIT, INC.

By:/s/ Michael V. Shustek                                           

      Michael V. Shustek

      President and Chief Executive Officer

MVP REALTY ADVISOR, LLC

By: :/s/ Michael V. Shustek

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