Document:

Exhibit 10.5

 

HUDSON BAY MASTER FUND LTD.

 

June 1, 2012

 

Innovate/Protect, Inc.

380 Madison Avenue, 22nd Floor

New York, New York 10017

 

Ladies and Gentlemen:

 

This letter agreement
(this “Agreement”) sets forth the commitment, subject to the terms and conditions set forth herein, effective
upon the closing of the merger (the “Merger”) of Innovate/Protect Inc. (“Innovate/Protect”)
with and into VIP Merger Sub, Inc., a wholly owned subsidiary of Vringo, Inc. (“Vringo”) contemplated pursuant
to the terms of that certain Merger Agreement (the “Merger Agreement”), dated as of March 12, 2012, by and among
Innovate/Protect, VIP Merger Sub, Inc. and Vringo, of Hudson Bay Master Fund Ltd. or, at its election, one or more of its affiliated
funds or entities (the “Fund”), at the request of Innovate/Protect and subject to the terms and conditions contained
herein, to provide debt financing to Innovate/Protect in the aggregate principal amount of up to $6,000,000.

 

1.                 
Commitment. The Fund hereby commits, subject to the terms and conditions set forth herein, that, at any time within
eighteen (18) months following the closing of the Merger and upon the request of Innovate/Protect, it shall provide debt financing
to Innovate/Protect in the aggregate principal amount of up to $6,000,000 (the “Facility”) upon the terms contemplated
by the term sheet (the “Term Sheet”) attached hereto as Exhibit A (the “Commitment”).
The Fund’s Commitment hereunder shall be reduced, on a dollar for dollar basis, by (i) any cash or capital raised by Vringo,
Innovate/Protect and/or any of their subsidiaries (which for purposes of this Agreement means any entity in which the Vringo and/or
Innovate/Protect, directly or indirectly, owns any of the capital stock or holds an equity or similar interest) (each a “Vringo
Entity” and, together the “Vringo Entities”), including, without limitation, through the issuance
of any debt, equity and/or securities convertible, exercisable or exchangeable into equity of any of the Vringo Entities or the
incurrence of indebtedness by any of the Vringo Entities and (ii) any cash received by any Vringo Entity in connection with the
exercise of any of its outstanding warrants.

 

    	 

    	 	

    

 

2.                 
Conditions; Termination. The Commitment shall be subject to (a) the consummation of the Merger on the terms and
conditions contemplated thereby without any amendment or modification (unless consented to in writing by the Fund), (b) at the
time of any request to provide the Facility in accordance with Section 1 above, the satisfaction of each of the conditions set
forth in Section 6.2(f) (Litigation) and 6.2(j) (Patents) of the Merger Agreement, which shall be deemed incorporated into this
Agreement mutatis mutandis, as if the Fund was the beneficiary of such conditions, (c) at all times after the consummation
of the Merger and prior to the termination of this Agreement, Vringo using its best efforts to raise capital by issuing equity
securities of Vringo and/or securities convertible, exercisable or exchangeable for equity securities of Vringo, (d) the execution
by Innovate/Protect and the Fund of all documents necessary for the consummation of the transaction contemplated by the Commitment
on terms and conditions in all respects acceptable and satisfactory to Innovate/Protect and the Fund, (e) no Vringo Entity shall
have, pursuant to or within the meaning of Title 11, U.S. Code, or any similar Federal, foreign or state law for the relief of
debtors (collectively, “Bankruptcy Law”), (A) commenced a voluntary case, (B) consented to the entry of an
order for relief against it in an involuntary case, (C) consented to the appointment of a receiver, trustee, assignee, liquidator
or similar official (a “Custodian”), (D) made a general assignment for the benefit of its creditors or (E)
admitted in writing that it is generally unable to pay its debts as they become due, (f) a court of competent jurisdiction not
having entered an order or decree under any Bankruptcy Law that (A) is for relief against any Vringo Entity in an involuntary
case, (B) appoints a Custodian of any Vringo Entity or (C) orders the liquidation of any Vringo Entity, (g) from and after the
date hereof , there shall not have occurred a material adverse change or material adverse development in the business, assets,
properties, operations, condition (financial or otherwise), results of operations or prospects of any of the Vringo Entities,
and (h) no Vringo Entity shall be, prior to the consummation of the transactions contemplated by the Facility, or after giving
effect to the consummation of the transactions contemplated by the Facility, Insolvent. As used herein, “Insolvent”
means, with respect to any person or entity (“Person”), (i) the present fair saleable value of such Person’s
assets is less than the amount required to pay such Person’s total indebtedness), (ii) such Person is unable to pay its
debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, (iii)
such Person intends to incur or believes that it will incur debts that would be beyond its ability to pay as such debts mature
or (iv) such Person has unreasonably small capital with which to conduct the business in which it is engaged as such business
is now conducted and is proposed to be conducted. The obligations of the Fund under or in connection with this Agreement will
terminate automatically and immediately upon the earlier to occur of (a) the termination of the Merger Agreement pursuant to its
terms, (b) any default under or acceleration prior to maturity of any indebtedness of any Vringo Entity, (c) the failure of any
Vringo Entity to satisfy any of the conditions set forth above, (d) any event, which, if occurring prior to the closing of the
Merger, would have resulted in the failure of the conditions set forth in Section 6.2(f) (Litigation) and 6.2(j) (Patents) of
the Merger Agreement to be satisfied, (e) upon written notice to terminate this Agreement delivered by Innovate/Protect to the
Fund or (f) eighteen months after the consummation of the Merger. 

 

3.                 
Representations and Warranties. The Fund hereby represents and warrants to Innovate/Protect that (a) it has all limited
partnership, corporate or other organizational power and authority to execute, deliver and perform this Agreement, (b) the execution,
delivery and performance of this Agreement by it has been duly and validly authorized and approved by all necessary limited partnership
action by it, and no other proceedings or actions on the part of the Fund are necessary therefor, and (c) this Agreement has been
duly and validly executed and delivered by it and constitutes a valid and legally binding obligation of it, enforceable against
it in accordance with the terms of this Agreement, except as enforcement may be limited by equitable principles or by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally.

 

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4.                 
Indemnification.In consideration of the Fund’s execution and delivery of this Agreement, each of the Vringo
Entities hereby agree to jointly and severally defend, protect, indemnify and hold harmless the Fund and each of their stockholders,
partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents
or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this
Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether
any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’
fees and disbursements, incurred by any Indemnitee as a result of, or arising out of, or relating to any cause of action, suit
or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on
behalf of any of the Vringo Entities) arising out of or resulting from the execution, delivery, performance or enforcement of this
Agreement.

 

5.                 
Governing Law; Jurisdiction; Venue; Waiver of Jury Trial.

 

(a)               
This Agreement shall be governed by and construed and enforced in accordance with the domestic substantive laws of the State
of New York, without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws
of any other jurisdiction.

 

(b)              
All actions and proceedings arising out of or relating to this Agreement shall be heard and determined in the United States
District Court located in the Southern District of New York or if such action or proceeding may
not be brought in federal court, the state courts of the State of New York located in the Borough of Manhattan and the parties
hereto hereby irrevocably submit to the exclusive jurisdiction of such courts in any such action or proceeding and irrevocably
waive the defense of an inconvenient forum to the maintenance of any such action or proceeding.

 

(c)               
EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING BETWEEN THE PARTIES
HERETO ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

6.                 
Counterparts. This Agreement may be executed in any number of counterparts (including
by facsimile or by .pdf delivered via email), each such counterpart when executed being deemed to be an original instrument, and
all such counterparts shall together constitute one and the same agreement.

 

7.                 
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person,
except that each Indemnitee shall have the right to enforce the obligations of the Vringo Entities with respect to Section 3.

 

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8.                 
Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the parties
hereto, their affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement and
the instruments referenced herein and therein contain the entire understanding of the parties with respect to the matters covered
herein and therein and, except as specifically set forth herein or therein. No provision of this Agreement may be amended other
than by an instrument in writing signed by the parties hereto.

 

9.                 
Successors and Assigns. Except in connection with the Merger, Innovate/Protect shall not assign this Agreement or
any rights or obligations hereunder without the prior written consent of the Fund, including by way of any change of control. The
Fund may assign some or all of its rights hereunder to one or more affiliates of the Fund without the consent of Innovate/Protect.

 

10.             
Expenses. Notwithstanding the non-binding nature of the Term Sheet, the Company hereby
covenants and agrees to comply with the terms of the section entitled “Expenses” in the Term Sheet and to promptly
satisfy all obligations contemplated therein, provided that the reimbursement of expenses relating to this Agreement shall not
exceed $10,000.

 

[remainder of the
page intentionally left blank – signature page follows]

 

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Sincerely,

 

HUDSON BAY MASTER FUND
LTD.

 

 

By: HUDSON BAY CAPITAL MANAGEMENT, L.P., its investment
manager

 

 

By:  /s/ Yoav Roth

Name: Yoav Roth

Title: Authorized Signatory

 

Agreed to and accepted:

 

INNOVATE/PROTECT, INC.

 

 

By: /s/ Alexander R. Berger

Name: Alexander R. Berger

Title: Chief Operating Officer

 

 

 

 

    	SIGNATURE PAGE TO DEBT COMMITMENT LETTERExhibit 10.6

 

July 19, 2012

 

Vringo, Inc.

44 W. 28th Street, Suite 1414

New York , New York 10001

Re:
Lock-up Agreement

Ladies and Gentlemen:

 

The undersigned, a
holder of common stock, par value $0.01 per share (“Common Stock”), or rights to acquire Common Stock, of Vringo,
Inc. (the “Company”), for other good and valuable consideration,
receipt of which is hereby acknowledged, hereby agrees for the benefit of the Company that, without the prior written consent of
the Company, the undersigned will not, from the date hereof through the period ending six (6) months after the date hereof (the
“Lock-Up Period”), directly or indirectly: (1) offer, pledge, assign, encumber, announce the intention to sell,
sell, contract to sell (including any short sale), sell any option or contract to purchase, purchase any option or contract to
sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, any shares of Common Stock or any securities
convertible into or exercisable or exchangeable for Common Stock owned either of record or beneficially or may be deemed to be
beneficially owned (as defined in the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated
thereunder (the “Exchange Act”)) by the undersigned on the date hereof or hereafter acquired or (2) enter into
any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Common Stock,
whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Common Stock or such other securities,
in cash or otherwise, or (3) make any demand for or exercise any right with respect to, the registration of any shares of Common
Stock or any security convertible into or exercisable or exchangeable for Common Stock, or (4) publicly announce an intention to
do any of the foregoing (the “Lock-Up”).

 

The Lock-Up shall not
apply to:

 

(a) transfers of shares
of Common Stock or any security convertible into or exercisable or exchangeable for Common Stock (i) as a bona fide gift,
or gifts, (ii) to an immediate family member (as such term is defined in Item 404 of Regulation S-K) or a trust for the direct
or indirect benefit of the undersigned or such immediate family member of the undersigned, or (iii) by will or intestacy;

 

(b) the exercise of options granted under
the Company’s 2012 Employee, Director and Consultant Equity Incentive Plan (the “2012 Plan”) and 2006
Stock Option Plan (the “2006 Plan”) [AND WITH RESPECT TO DONALD STOUT – or assumed in connection with
the consummation of the transactions consummated by the Agreement and Plan of Merger, dated March 12, 2012, by and between the
Company, VIP Merger Sub, Inc. and Innovate/Protect, Inc. (the “Merger”)] provided that the shares of Common
Stock delivered upon such exercise are subject to the Lock-Up;

 

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(c) transfers of shares of Common Stock
to the Company (i) as forfeitures to satisfy tax withholding and remittance obligations of the undersigned in connection with
the vesting or exercise of equity awards granted pursuant to the Company’s 2012 Plan and/or 2006 Plan [AND WITH RESPECT TO
DONALD STOUT – or assumed in connection with the Merger];

 

[(d)the exercise of any of the Company’s
Series 1 Warrants and Series 2 Warrants issued to the undersigned in connection with the Merger (collectively, the “Warrants”)
and the sale or disposition of the shares of Common Stock issuable thereunder, in the event the Company calls such Warrants for
redemption pursuant to and in accordance with the provisions of the Warrants; and][ONLY APPLICABLE TO I/P’S FORMER OFFICERS
AND DIRECTORS]

 

(e) the conversion of the Company’s
Series A Preferred Stock that are outstanding as of the date hereof, provided that the shares of Common Stock delivered
upon such conversion are subject to the restrictions set forth in the Lock-Up; and

 

(f) the establishment of a trading plan
that complies with Rule 10b5-1 under the Exchange Act; provided, however, that (i) the restrictions shall apply in
full force to sales or other dispositions pursuant to such Rule 10b5-1 plan during the Lock-Up Period and (ii) no public announcement
or disclosure of entry into such Rule 10b5-1 plan is made or required to be made during the Lock-Up Period, including any filing
with the SEC under Section 13 or Section 16 of the Exchange Act;

 

provided that
in case of any transfer pursuant to clause (a) above, each transferee, trustee, donee or distributee shall sign and deliver a lock-up
letter substantially in the form of this Lock-Up Agreement, and provided further that such transfer shall not involve a
disposition for value and such transfer is not required to be reported in any public report or filing with the SEC during the Lock-Up
Period.

 

In furtherance of the
foregoing, the Company, and any duly appointed transfer agent for the registration or transfer of the securities described herein,
are hereby authorized to decline to make any transfer of securities if such transfer would constitute a violation or breach of
this Lock-Up Agreement.

 

The undersigned also
acknowledges that it may have to enter into a lock-up agreement or agreements with underwriters and/or placement agents engaged
by the Company in connection with future financing(s) of the Company and the undersigned hereby agrees to execute such lock-up
agreements in the form acceptable to the underwriters and/or placement agents.

 

The undersigned hereby
represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement. All authority herein
conferred or agreed to be conferred and any obligations of the undersigned shall be binding upon the successors, assigns, heirs
or personal representatives of the undersigned.

 

This
Lock-Up Agreement sets forth the entire agreement of the parties with respect to its subject matter and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee
or representative of any party to this Lock-Up Agreement with respect to such subject matter. Should a dispute arise between the
parties under or relating to this Lock-Up Agreement, each party agrees that prior to initiating any formal proceeding against the
other (except when injunctive relief is appropriate), the parties will each designate a representative for purposes of resolving
the dispute.  If the parties' representatives are unable to resolve the dispute within 14 business days, the dispute shall
be settled by mediation and then, if necessary, by arbitration under the then-current commercial arbitration rules of the American
Arbitration Association.  The location of the proceeding shall be in New York, NY. The award in any such arbitration shall
be final, binding, conclusive and not appealable. Judgment upon any award rendered by the arbitrator may be entered by any
court having jurisdiction thereof.

 

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This Lock-Up Agreement
may be executed in any number of counterparts, all of which shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered
by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page,
such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed)
with the same force and effect as if such signature page were an original thereof. Execution and delivery of this Agreement by
facsimile or other electronic signature is legal, valid and binding for all purposes.

 

This Lock-Up Agreement
shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws
principles thereof.

 

	 	 	 	Very truly yours,
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	Signature:	 	 
	 	 	 	 	 	 
	 	 	 	Print Name:	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Acknowledged:	 	 	 	 
	 	 	 	 	 	 
	VRINGO, INC.	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	 	 	 	 	 
	Name:	 	 	 	 	 
	Title:	 	 	 	 	 

 

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