Document:

MOTR 2011.12.31 EX 10.58

EXECUTION VERSION

AMENDED AND RESTATED SECURITY AGREEMENT

THIS AMENDED AND RESTATED SECURITY AGREEMENT (“Agreement”) dated as of February 28, 2012 is by and among MOTRICITY, INC., a Delaware corporation (“Borrower”), MCORE INTERNATIONAL, INC., a Washington corporation (“Guarantor”) (Borrower and Guarantor, individually, is each a “Grantor”, and collectively, are the “Grantors”) with and in favor of HIGH RIVER LIMITED PARTNERSHIP, a Delaware limited partnership (together with its successors and assigns, the “Lender”).
R E C I T A L S
WHEREAS, on September 16, 2011, Lender made a loan in the original amount of $20,000,000, and the obligation to repay such loan was evidenced by a Promissory Note dated as of such date in favor of Lender (as the same has been amended prior hereto, the “Original Note”); 
WHEREAS, as security for obligations under the Original Note and all other Obligations (as defined in the Original Note), Borrower granted to Lender a security interest in the Collateral (as herein defined) pursuant to the terms of that certain Security Agreement dated as of September 16, 2011 (the “Original Security Agreement”);
WHEREAS, on the date hereof, Motricity, Inc., a Delaware corporation (the “Borrower”) is delivering to High River Limited Partnership, a Delaware limited partnership (the “Lender”) an Amended and Restated Promissory Note in the original principal balance of $20,827,193.13 (as the same may be amended, amended and restated, modified or supplemented from time to time, the “Note”), which Note amends and restates the Original Note in its entirety;
WHEREAS, on the date hereof, as security for obligations under the Note and all other Obligations (as defined in the Note), Guarantor has agreed to guarantee the Obligations pursuant to the terms of that certain Guaranty dated as of the date hereof; and
WHEREAS, on the date hereof, as security for obligations under the Note and all other Obligations (as defined in the Note), Borrower desires to confirm its grant to Lender of a security interest in that portion of the Collateral that was subject to the Original Security Agreement and grant to Lender a security interest in the Collateral subject hereto (whether or not subject to the Original Security Agreement), and Guarantor desires to provide a grant to Lender of a security interest in the Collateral subject hereto, and Borrower and Lender wish to amend and restate in its entirety the Original Security Agreement pursuant to the terms hereof;
NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of 

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which is hereby acknowledged, the parties hereto agree as follows:
     1.    DEFINITIONS.  
All terms used herein which are defined in the Note or in Article 1, 8 or Article 9 of the UCC shall have the meanings given therein unless otherwise defined herein.
2.    GRANT OF SECURITY INTEREST.

(a) Each Grantor hereby grants Lender, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Lender as collateral security for the Obligations, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. Each Grantor represents, warrants, and covenants that it has the power to transfer each item of Collateral upon which it purports to grant a security interest hereunder, and that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that may have superior priority to Lender’s Lien under this Agreement).
(b)    (i)    “Collateral” is each Grantor’s right, title and interest in and to all personal property, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof, including without limitation, the following: All goods, accounts (including receivables), equipment, inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, general intangibles, copyright rights, copyright applications, copyright registrations, copyright licenses, patents, patent applications, patent licenses, trademarks, trademark applications, trademark licenses and all goodwill associated with or symbolized therewith, commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letter-of-credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, including without limitation all Pledged Collateral, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and all books and records of each Grantor relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.  Notwithstanding the foregoing, (A) the Collateral does not include the deposit account(s) serving as cash collateral for the letters of credit issued by Silicon Valley Bank or cash management obligations owed to Silicon Valley Bank; and (B) in the case of capital stock of any Subsidiary of a Grantor that is not organized in the United States of America and is not a Guarantor, the portion of such capital stock that constitutes Collateral shall be only sixty-five (65%) percent of all of the capital stock of such Subsidiary.
(ii)    “Pledged Collateral” is all capital stock of each Subsidiary of each Grantor (including capital stock of each Guarantor), together with any securities, 

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investment properties, instruments or distributions of any kind issuable, issued or received by any Grantor upon conversion of, in respect of, or in exchange for any of such capital stock, including, but not limited to, those arising from a stock dividend, stock split, reclassification, reorganization, merger, consolidation, sale of assets or other exchange of securities or any dividends or other distributions of any kind upon or with respect to such capital stock; provided that in the case of capital stock of any Subsidiary of a Grantor that is not organized in the United States of America and is not a Guarantor, the portion of such capital stock that constitutes Pledged Collateral shall be only sixty-five (65%) percent of all of the capital stock of such Subsidiary.
(iii)    “Subsidiary” means, with respect to any Person, any Person of which more than fifty percent (50%) of the voting stock or other equity interests (in the case of Persons other than corporations) is owned or controlled, directly or indirectly, by such Person .
 (b) If any Grantor shall acquire a commercial tort claim with a value in excess of $50,000, such Grantor shall promptly notify Lender in a writing signed by such Grantor of the general details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Lender. 
(c) Each Grantor hereby assigns, pledges, delivers, and transfers to Lender, and hereby grants to Lender, a continuing first priority security interest in and against all right, title and interest of the following, whether now or hereafter existing or acquired by any Grantor: all Pledged Collateral, together with all proceeds and substitutions thereof, all cash, stock and other moneys and property paid thereon, all rights to subscribe for securities declared or granted in connection therewith, and all other cash and non-cash proceeds of the foregoing; and all books of any Grantor relating to the foregoing and any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and proceeds thereof. 
(d) If this Agreement is terminated, Lender’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations, Lender shall, at Grantor’s sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to the applicable Grantor. 
(e) Each Grantor hereby authorizes Lender to file financing statements, without notice to any Grantor, with all appropriate jurisdictions to perfect or protect Lender’s interest or rights hereunder.
(f) Each Grantor hereby authorizes Lender to record Intellectual Property Security Agreements (attached hereto as Exhibit A), without notice to any Grantor, with the United States Patent and Trademark Office to perfect or protect Lender’s interest or rights hereunder.

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(g) Beyond the custody thereof, in accordance with the same procedures it employs with regard to its own property, the Lender shall not have any duty as to any Collateral. 
3.    COLLATERAL COVENANTS.  
The Collateral is now and shall remain personal property so long as the applicable Grantor has rights in it, provided that Grantor shall not sell, lease, dispose, or otherwise transfer such Collateral in violation of the Loan Documents.  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 necessary or desirable actions in connection with its Collateral, subject to the rights of the Lender.  Each Grantor hereby irrevocably appoints Lender as Borrower’s true and lawful attorney-in-fact, and authorizes Lender, in any Grantor’s or Lender’s name, to do all acts and things which are necessary when an Event of Default exists, in Lender’s determination, to fulfill the Grantors’ obligations under this Agreement and the Note.  At the request of Lender at any time and from time to time, each Grantor shall, at such Grantor’s expense, duly execute and deliver, or cause to be duly executed and delivered, such further agreements, documents and instruments, and do or cause to be done such further acts as may be necessary or proper to evidence, perfect, maintain and enforce the security interests and the priority thereof in the Collateral and to otherwise effectuate the provisions or purposes of this Agreement or any of the other Loan Documents, provided however, that notwithstanding anything herein to the contrary, no Grantor shall have any obligation to maintain for the benefit of Lender the perfection of any security interests in the Collateral, or to represent or warrant that such security interest is perfected, except (i) as such perfection may be obtained by the filing of UCC financing statements in the applicable offices and recording Intellectual Property Security Agreements with the United States Patent and Trademark Office, (ii) Grantors shall endeavor to cause, prior to the date that is thirty (30) days after the date hereof, three-party control agreements to be entered into among the applicable Grantor, Lender, and the applicable depository bank or securities intermediary, as the case may be, in each case sufficient to perfect the security interest in favor of Lender in those deposit accounts and securities accounts of Grantors that hold more than $50,000.00, except in respect of any payroll or employee benefit accounts; and (iii) as may otherwise be requested by Lender.  Grantors covenant and agree that they shall not open or maintain additional deposit accounts or securities accounts that hold more than $50,000.00, without providing Lender prior written notice thereof and, except in respect of any payroll or employee benefit accounts, causing three-party control agreements, as requested by Lender, to be entered into among the applicable Grantor, Lender, and the applicable depository bank or securities intermediary, as the case may be, in each case sufficient to perfect the security interest in favor of Lender in those deposit accounts and securities accounts of Grantors.
4.    REMEDIES. 
At any time an Event of Default exists or has occurred and is continuing, Lender shall have all rights and remedies provided in this Agreement, the other Loan Documents, the UCC and other applicable law, all of which rights and remedies may be exercised without notice 

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to or consent by Borrower or Guarantor except as such notice or consent is expressly provided for hereunder or required by applicable law.  All rights, remedies and powers granted to Lender hereunder, under any of the other Loan Documents, the UCC or other applicable law, are cumulative, not exclusive and enforceable, in Lender’s discretion, alternatively, successively, or concurrently on any one or more occasions, and shall include, without limitation, the right to apply to a court of equity for an injunction, without requirement for any bond or surety,  to restrain a breach or threatened breach by Borrower or any Guarantor of this Agreement or any of the other Loan Documents.  Lender may at any time or times, proceed directly against Borrower or Guarantor to collect the Obligations without prior recourse to the Collateral or any other collateral.  Lender may at any time or times, proceed directly against Collateral to collect the Obligations without prior recourse to the Borrower or any Guarantor.
Without limiting the foregoing, or any of the Lender’s rights under the Note, upon an Event of Default, Lender may, in its discretion (a) take possession of the Collateral, without resort to legal process and without prior notice to any Grantor, for that purpose each Grantor irrevocably appoints the Lender its attorney-in-fact to enter upon any premises on which the Collateral or any part thereof may be situated and remove the Collateral therefrom, or require any Grantor to assemble the Collateral and make it available to Lender at a place designated by Lender; (b) collect, foreclose, receive, appropriate, setoff and realize upon any and all Collateral and/or (c) sell, lease, transfer, assign, deliver or otherwise dispose of any and all Collateral (including entering into contracts with respect thereto, public or private sales at any exchange, broker's board, at any office of Lender or elsewhere) at such prices or terms as Lender may deem reasonable, for cash, upon credit or for future delivery, with the Lender having the right to purchase the whole or any part of the Collateral at any such public sale, all of the foregoing being free from any right or equity of redemption of any Grantor, which right or equity of redemption is hereby expressly waived and released by each Grantor.  Lender, its employees, attorneys and agents may bid and become purchasers at any such sale, if public, and may purchase at any private sale any of the Collateral that is of a type customarily sold on a recognized market or which is subject to widely distributed standard price quotations.  Lender will give the applicable Grantor at least ten (10) days’ prior written notice of the time and place of any public sale thereof or the time after which any private sale or other intended disposition (which may include, without limitation, a public sale or lease of all or part of the Collateral) is to be made.  Each Grantor agrees that ten (10) days is a reasonable time for such notice.  
Each Grantor shall remain liable to Lender for the payment of any deficiency with interest at the highest rate provided for in the Note and all costs and expenses of collection or enforcement, including attorneys' fees and expenses as set forth in the Note.
5.    WAIVERS AND CONSENTS; GOVERNING LAW.  
(a)    This Security Agreement, the other Loan Documents, any supplements hereto or thereto, and any instruments or documents delivered or to be delivered in connection herewith or therewith represents the entire agreement and understanding concerning the subject matter hereof and thereof between the parties hereto, and supersede all other prior 

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agreements, understandings, negotiations and discussions, representations, warranties, commitments, proposals, offers and contracts concerning the subject matter hereof, whether oral or written.  In the event of any inconsistency between the terms of this Security Agreement and any schedule or exhibit hereto, the terms of this Security Agreement shall govern.
(b)    This Security Agreement and terms hereof or thereof may not be amended, waived, discharged or terminated unless such amendment, waiver, discharge or termination is in writing signed by the party to be charged with such amendment, waiver, discharge or termination, and such amendment, waiver, discharger or termination shall be effective and binding as to Lender only in the specific instance and for the specific purpose for which given.  
(c)    The validity, interpretation and enforcement of this Security Agreement and any dispute arising in connection herewith or therewith shall be governed by the internal laws of the State of New York (without giving effect to principles of conflicts of law).
(d)    Each Grantor irrevocably consents and submits to the non-exclusive jurisdiction of the Superior Courts located within New York County, New York and the United States District Court for the Southern District of New York and waives any objection based on venue or forum non conveniens with respect to any action instituted therein arising under this Security Agreement or in any way in connection with or related or incidental to the dealings of any Grantor and Lender in respect of this Security Agreement or any of the other Loan Documents or the transactions related hereto or thereto, in each case whether now existing or hereafter arising, and whether in contract, tort, equity or otherwise, and agrees that any dispute arising out of the relationship between any Grantor and Lender or the conduct of such Persons in connection with this Security Agreement shall be heard only in the courts described above (except that Lender shall have the right to bring any action or proceeding against any Grantor or any property of any Grantor in the courts of any other jurisdiction which Lender deems necessary or appropriate in order to realize on such assets or to otherwise enforce its rights against any Grantor or any property of any Grantor).
(c)    Each Grantor hereby waives personal service of any and all process upon it and consents that all such service of process may be made by certified mail (return receipt requested) directed to it and service so made shall be deemed to be completed five (5) days after the same shall have been so deposited in the U.S. mails, or, at Lender’s option, by service upon any Grantor in any other manner provided under the rules of any such courts.  Within thirty (30) days after such service, the applicable Grantor shall appear in answer to such process, failing which such Grantor shall be deemed in default and judgment may be entered by Lender against such Grantor for the amount of the claim and other relief requested.
(d)    EACH GRANTOR WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION,
(i)    ARISING UNDER THIS SECURITY AGREEMENT, OR
(ii)    IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO 

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THE DEALINGS BETWEEN ANY GRANTOR AND LENDER IN RESPECT OF THIS SECURITY AGREEMENT OR THE TRANSACTIONS RELATED HERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE.  EACH GRANTOR AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY.
EACH GRANTOR HEREBY ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS SECURITY AGREEMENT IS A PART IS A COMMERCIAL TRANSACTION, AND HEREBY VOLUNTARILY AND KNOWINGLY WAIVES SUCH RIGHTS AS IT MAY HAVE TO NOTICE AND/OR HEARING UNDER ANY APPLICABLE FEDERAL OR STATE LAWS PERTAINING TO THE EXERCISE BY LENDER OF SUCH RIGHTS AS THE LENDER MAY HAVE REGARDING THE RIGHT TO SEEK PREJUDGMENT REMEDIES AND/OR DEPRIVE ANY GRANTOR OF OR AFFECT THE USE OF OR POSSESSION OR ENJOYMENT OF SUCH GRANTOR’S PROPERTY PRIOR TO THE RENDITION OF A FINAL JUDGMENT AGAINST SUCH GRANTOR.  EACH GRANTOR FURTHER WAIVES ANY RIGHT IT MAY HAVE TO REQUIRE LENDER TO PROVIDE A BOND OR OTHER SECURITY AS A PRECONDITION TO OR IN CONNECTION WITH ANY PREJUDGMENT REMEDY SOUGHT BY LENDER, AND WAIVES ANY OBJECTION TO THE ISSUANCE OF SUCH PREJUDGMENT REMEDY BASED ON ANY OFFSETS, CLAIMS, DEFENSES OR COUNTERCLAIMS TO ANY ACTION BROUGHT BY THE LENDER.
6.    AMENDMENT AND RESTATEMENT.  
This Agreement is executed in substitution of, is a replacement for, and constitutes an amendment and restatement of the Original Security Agreement.  Borrower hereby confirms that the security interests granted therein shall continue to be in full force and effect, except to the extent expressly amended hereby.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, each Grantor and Lender have caused this Agreement to be duly executed as of the day and year first above written.

BORROWER:

MOTRICITY, INC.

By:_/s/ James R. Smith, Jr. _____ 
Name: James R. Smith, Jr.
Title: President and Interim Chief Executive
    Officer

GUARANTOR:

MCORE INTERNATIONAL, INC.

By: _/s/ James R. Smith, Jr. _____ 
Name: James R. Smith, Jr.
Title: President

Signature Page to Amended and Restated Security Agreement

LENDER:

HIGH RIVER LIMITED PARTNERSHIP 
By:  Hopper Investments LLC, its General Partner

By:_/s/ Edward E. Mattner_____ 
Name: Edward E. Mattner
Title: Authorized Signatory

Signature Page to Amended and Restated Security Agreement

EXHIBIT A

INTELLECTUAL PROPERTY SECURITY AGREEMENT

This INTELLECTUAL PROPERTY SECURITY AGREEMENT, dated as of February 28, 2012 (as amended, supplemented or otherwise modified from time to time, the (“Intellectual Property Security Agreement”), is made by MOTRICITY, INC., a Delaware corporation (“Borrower”), MCORE INTERNATIONAL, INC., a Washington corporation (“Guarantor”) (Borrower and Guarantor, individually, is each a “Grantor”, and collectively, are  the “Grantors”) with and in favor of HIGH RIVER LIMITED PARTNERSHIP, a Delaware limited partnership (together with its successors and assigns, the “Lender”).
WHEREAS, on September 16, 2011, Lender made a loan in the original amount of $20,000,000, and the obligation to repay such loan was evidenced by a Promissory Note dated as of such date in favor of Lender (as the same has been amended prior hereto, the “Original Note”); 
WHEREAS, as security for obligations under the Original Note and all other Obligations (as defined in the Note), Borrower granted to Lender a security interest in the Collateral (as herein defined) pursuant to the terms of that certain Security Agreement dated as of September 16, 2011 (the “Original Security Agreement”);
WHEREAS, on the date hereof, Motricity, Inc., a Delaware corporation (the “Borrower”) is delivering to High River Limited Partnership, a Delaware limited partnership (the “Lender”) an Amended and Restated Promissory Note in the original principal balance of $20,827,193.13 (as the same may be amended, amended and restated, modified or supplemented from time to time, the “Note”), which Note amends and restates the Original Note in its entirety;
WHEREAS, on the date hereof, as security for obligations under the Note and all other Obligations (as defined in the Note), Guarantor has agreed to guarantee the Obligations pursuant to the terms of that certain Guaranty dated as of the date hereof; and
WHEREAS, on the date hereof, as security for obligations under the Note and all other Obligations (as defined in the Note), Borrower desires to confirm its grant to Lender of a security interest in that portion of the Collateral that was subject to the Original Security Agreement and grant to Lender a security interest in the Collateral subject hereto (whether or not subject to the Original Security Agreement), and Guarantor desires to provide a grant to Lender of a security interest in the Collateral subject hereto, and Borrower and Lender wish to amend and restate in its entirety the Original Security Agreement pursuant to the terms of that certain Amended and Restated Security  Agreement dated as of even date herewith among Borrower, Lender, and Guarantor, which Collateral shall include without limitation, certain patents, trademarks and intellectual property of the Grantors, and the Grantors have agreed as a condition thereof to execute this Intellectual Property Security Agreement for recording with the United States Patent and Trademark Office and other applicable governmental authorities;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantors agree as follows:
1.    Defined Terms.
Capitalized terms used herein without definition are used as defined in the Note. 
2.    Grant of Security.
Each Grantor hereby grants to the Lender a security interest in and to all of such Grantor’s right, title and interest in and to the following, as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations:
(i)  all domestic and foreign patents, patent applications and patentable inventions, including, without limitation, each issued patent and patent application identified in Schedule 1 hereto all certificates of invention or similar property rights, (ii) all inventions and improvements described and claimed therein, (iii) the right to sue or otherwise recover for any and all past, present and future infringements and misappropriations thereof, (iv) all income, royalties, damages and other payments now and hereafter due and/or payable with respect thereto (including, without limitation, payments under all patent licenses entered into in connection therewith, payments arising out of any other sale, lease, license or other disposition thereof and damages and payments for past, present or future infringement thereof), and (v) all reissues, divisions, continuations, continuations-in-part, substitutes, renewals, and extensions thereof, all improvements thereon and all other rights of any kind whatsoever accruing thereunder or pertaining thereto (collectively, the “Patent Collateral”);
(ii)  all domestic and foreign trademarks, service marks, trade names, corporate names, company names, business names, trade dress, trade styles, logos, or other indicia of origin or source identification, Internet domain names, trademark and service mark registrations, and applications for trademark or service mark registrations and any renewals thereof, including, without limitation, each registration and application identified in Schedule 1 hereto, (ii) the right to sue or otherwise recover for any and all past, present and future infringements and misappropriations thereof, (iii) all income, royalties, damages and other payments now and hereafter due and/or payable with respect thereto (including, without limitation, payments under all trademark licenses entered into in connection therewith, and damages and payments for past, present or future infringements thereof), and (iv) all other rights of any kind whatsoever accruing thereunder or pertaining thereto, together in each case with the goodwill of the business connected with the use of, and symbolized by, each of the above (collectively, the “Trademark Collateral”); provided, however, that the Trademark Collateral shall not include any “intent-to-use” application for registration of a trademark filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement of Use” pursuant to Section 1(d) of the Lanham Act or an “Amendment to Allege Use” pursuant to Section 1(c) of the Lanham Act, solely to the extent, if any, and solely during 

the period, if any, in which the grant of a security interest therein would void said application or impair the validity or enforceability of any registration issuing therefrom; and 
(iii)      any and all proceeds of the foregoing.
3.    Recordation.  
Each Grantor authorizes and requests that the Commissioner of Patents and Trademarks and any other applicable government officer record this Intellectual Property Security Agreement.
4.    Execution in Counterparts.
This Intellectual Property Security Agreement may be executed by one or more of the parties to this Intellectual Property Security Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Intellectual Property Security Agreement by facsimile transmission or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.
5.    Governing Law.
This Intellectual Property Security Agreement and the rights and obligations of the parties hereunder shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of New York without regard to conflict of law principles that would result in the application of any law other than the law of the State of New York.
6.    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 necessary or desirable actions in connection with its Patent Collateral and Trademark Collateral, subject to the rights of the Lender.

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, each of the undersigned has caused this Intellectual Property Security Agreement to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.
                    
BORROWER:

MOTRICITY, INC.

By:_________________________ 
Name: ___________________
Title: ___________________

                    
GUARANTOR:

MCORE INTERNATIONAL, INC.

By:_________________________ 
Name: ___________________
Title: ___________________jorgensenemployment.htm

Exhibit 10.22

 

Nicholas Landekic

President & CEO

July 19, 2011

Daniel Jorgensen, MD, MPH, MBA

225 Devonshire Lane

Madison, CT  06443

Dear Dan;

I am very pleased to offer you the position of Senior Vice President, Clinical Development & Chief Medical Officer with PolyMedix.  In this capacity you will report directly to me. Your efforts will be key to PolyMedix’s success.  We are excited to have you join our team. We feel that your mix of talents and skills will bring an added strength to our efforts.

The principle elements of your offer are as follows:

	
1.  

	
Commencement Date: Your position, as a regular full-time employee, will be effective as of August 22, 2011, or other date as may be mutually agreed upon.

	
2.  

	
Duties and Responsibilities: You shall perform such duties as are consistent with your position and as are assigned to you by me. You agree to use your best efforts to perform such duties faithfully, and while you remain employed, not to engage in any other business activity that is in conflict with your duties and obligations to the Company. In the future as PolyMedix and its organizational structure evolve, your duties and reporting relationships may change.

	
3.  

	
Compensation.   You will receive an initial annual salary of $315,000 per year, paid monthly ($26,250). You will receive annual performance appraisals and will discuss annual objectives with me. You and I will develop your objectives within the first 90 days of your employment.  You will be eligible for increases in compensation based on your and the Company’s performance.

You will be eligible for a performance-based annual cash bonus of up to 50% of your annual base salary, contingent on your successful fulfillment of your assigned objectives; all bonuses for all employees are based on performance and the financial ability of the company to provide bonuses, and subject to the discretionary approval of the Chief Executive Officer and Board of Directors.

	
4.  

	
Stock Options. Subject to approval by the Board of Directors, you will be granted options to acquire 500,000 shares of PolyMedix Common Stock. These stock options shall be subject to the terms and provisions of PolyMedix’s Equity Compensation Plan, and vest monthly over a three year period following their grant.

You may receive additional stock options during the time of your employment.  Future option grants will be based on your and the Company’s performance.

	
5.  

	
Relocation.  To assist you with your relocation from Connecticut, PolyMedix will provide you with a sign-on bonus in the gross amount of $50,000. You will be responsible for any and all income and other taxes that may be applicable to or payable on this sign-on amount. PolyMedix can suggest a relocation company to you to help manage your relocation; however, you are not required to use the services of this company.  If you should voluntarily resign your employment with PolyMedix within 24 months from the date of your relocation, you agree to repay to PolyMedix the amount of this sign-on relocation bonus.  The repayment will be waived if your employment is involuntary terminated.  The Company reserves the right to withhold all or any portion of payments payable to you from the Company in order to satisfy full or partial repayment of this sign-on relocation bonus.

	
6.  

	
Benefits.  You will be provided with such retirement benefits, fringe benefits and insurance coverages as are made available to employees of the Company.  You will be eligible for these benefits on the first of the month following your hire date.  If you are not immediately eligible for medical benefits, PolyMedix will reimburse you for the cost of one month’s medical premium.

	
7.  

	
Time Away From Work. PolyMedix currently recognizes twelve (12) annual paid holidays including New Year's Day, Martin Luther King Day, President's Day, Memorial Day, July 4th, Labor Day, Thanksgiving Day, the day following Thanksgiving Day, Christmas Day and three (3) floating days per year to be used at your discretion. In addition, beginning January 1, 2012 you are eligible for twenty (20) days of annual discretionary paid vacation. Vacation days will accrue upon commencement of employment (at a rate of 1.66 days per month).  PolyMedix reserves the right to request deferral of discretionary vacation time within the annual period to meet business demands of the Company.  You will earn an additional vacation day for each year of service up to a maximum of five additional vacation days.  PolyMedix reserves the right to change this vacation policy at any time.

	
8.  

	
Termination. You will be free to resign from the Company at any time, and the Company will be free to terminate your employment at any time.  Upon any such termination or resignation, you will be entitled to any amounts earned and payable but not yet paid. PolyMedix will review the circumstances of the termination and at its sole discretion may determine the terms and conditions of severance.

In addition, if there is a “Change in Control” of PolyMedix, and subsequent to any such Change in Control event the Company terminates your employment other than by reason of your “disability”, then, in lieu of any other severance benefits otherwise payable under any Company policy, or any other damages payable in connection with such termination, you will be entitled to (i) full vesting of stock options awards previously granted to you, (ii) continued cash payments equal to your base salary cash payments equal to 12 months of compensation. Your right to such payments, vesting and/or grants and benefits pursuant to the preceding sentence shall be conditional upon your execution of a customary release of all claims against the Company and its affiliates and representatives in a form satisfactory to the Company.  You acknowledge that if your employment terminates (i) by reason of your death, (ii) by the Company on account of your “disability”, (iii) by the Company at its discretion for any reason other than under conditions of a Change in Control or your “disability”, you will not be entitled to such payments, vesting and/or grants.  For purposes of this paragraph 8,

“Disability” means a finding by the Company that you have been unable to perform your job functions by reason of a physical or mental impairment for a period of 90 consecutive days or any 90 days within a period of 180 consecutive days; and

  “Change of Control” shall be deemed to have occurred if (I) Any “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act) (other than persons who are stockholders on the effective date of the Plan) becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the voting power of the then outstanding securities of the Company; provided that a Change of Control shall not be deemed to occur as a result of a change of ownership resulting from the death of a stockholder, and as a result of a transaction in which the Company becomes a subsidiary of another corporation and in which the stockholders of the Company, immediately prior to the transaction, will beneficially own, immediately after the transaction, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the parent corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote); or (II) The consummation of (a) a merger or consolidation of the Company with another corporation where the stockholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the surviving corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote), or where the members of the Board, immediately prior to the merger or consolidation, would not, immediately after the merger or consolidation, constitute a majority of the board of directors of the surviving corporation, (b) a sale or other disposition of all or substantially all of the assets of the Company, or (c) a liquidation or dissolution of the Company.

	
9.  

	
Confidential Information.  You acknowledge and agree that confidential information,         obtained by you while employed by the Company, or any of its subsidiaries concerning the business affairs of the Company or any subsidiary of the Company are the property of the Company or such subsidiary (hereinafter, “Confidential Information”). You agree to sign and abide by Confidential Disclosure, Inventorship, Guiding Principles, and Code of Professional Ethics agreements as will be required by the Company of all employees. Consequently, you agree that, except to the extent required by applicable law, statute, ordinance, rule, regulation or orders of courts or regulatory authorities, you shall not at any time (whether during or after the your employment) disclose to any unauthorized person or use for your own account any Confidential Information without the prior written consent of the Company, unless and to the extent that the aforementioned matters are or become generally known to and available for use by the public other than as a result of your acts or omissions to act or as required by law.  You shall deliver to the Company at the termination of your employment, or at any other time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) containing or constituting Confidential Information which you may then possess or have under your control.

	
10.  

	
Future Cooperation.  You agree that upon the Company’s reasonable request following your termination of employment, you will use reasonable efforts to assist and cooperate with the Company in connection with the defense or prosecution of any claim that may be made against or by the Company or its affiliates arising out of events occurring during your employment, or in connection with any ongoing or future investigation or dispute or claim of any kind involving the Company or its affiliates, including any proceeding before any arbitral, administrative, regulatory,  judicial, legislative, or other body or agency. You will be entitled to reimbursement for reasonable out-of-pocket expenses (including travel expenses) incurred in connection with providing such assistance.

	
11.  

	
Withholding.  The Company shall have the right to withhold from any amount payable to you hereunder an amount necessary in order for the Company to satisfy any withholding tax obligation it may have under applicable law, and may condition the grant, vesting or exercise of any stock-based award on your making arrangements satisfactory to the Company to enable it to satisfy any withholding obligation arising in connection with such grant, vesting or exercise.

	
12.  

	
Governing Law.  The terms of this Letter Agreement, and any action arising hereunder, shall be governed by and construed in accordance with the domestic laws of the Commonwealth of Pennsylvania, without giving effect to any choice of law or conflict of law provision or rule (whether of the Commonwealth of Pennsylvania or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the Commonwealth of Pennsylvania.

	
13.  

	
Waiver.  This Letter Agreement may not be released, changed or modified in any manner, except by an instrument in writing signed by you and the Company. The failure of either party to enforce any of the provisions of this Letter Agreement shall in no way be construed to be a waiver of any such provision.  No waiver of any breach of this Letter Agreement shall be held to be a waiver of any other or subsequent breach. 

	
14.  

	
Survival.  Notwithstanding anything contained herein to the contrary, the provisions of paragraph 9, 10, 12, 13, 15 and 16 shall survive termination of your employment with the Company and its affiliates.

	
15.  

	
Entire Agreement; No Conflicts.  This Letter Agreement supersedes all previous and contemporaneous communications, agreements and understandings, whether oral or written, between you, on the one hand, and the Company or any of its affiliates, on the other hand, and constitutes the sole and entire agreement between you and the Company pertaining to the subject matter hereof. You represent and warrant to the Company that your acceptance of employment and the performance of your duties for the Company will not conflict with or result in a violation or breach of, or constitute a default under any contract, agreement or understanding to which you are or were a party or of which you are aware and that there are no restrictions, covenants, agreements or limitations on your right or ability to enter into and perform the terms of this Letter Agreement.

	
16.  

	
Counterparts.  This Letter Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become a binding agreement when one or more counterparts have been signed by each party and delivered to the other party.

	
17.  

	
This offer is contingent on satisfactory reference checks to the sole satisfaction of PolyMedix.

Please indicate your acceptance of our offer of employment on the terms and conditions outlined above by signing and returning to us one copy of this letter.   Also attached are three very important documents; The PolyMedix Guiding Principles, The PolyMedix Code of Professional Ethics, and the Confidentiality and Inventorship Agreement.  Please sign these and return with your signed offer letter.  You may bring these with you on your first day of employment.

Dan, I am looking forward to working together with you to make PolyMedix a tremendous success.  This offer expires on July 25, 2011 unless signed and written acceptance is received by PolyMedix by the close of business on that day.

Sincerely yours,

/s/ Nicholas Landekic

Nicholas Landekic

President & C.E.O.

 

AGREED TO AND ACCEPTED BY:

 

_/s/ Daniel Jorgensen_____________                                                                                                Date: 7/23/11

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