Patriot Scientific

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http://www.secinfo.com/d12TC3.vt2n.c.htm

SCHEDULE 2
PROJECT DESCRIPTION

OBJECTIVES & ACTIVITIES

A.) Develop and execute a commercialization program for the rights to
the MSD Patents transferred by Patriot and TPL to P-Newco pursuant
to the Newco Licenses which:

i.) Establishes the MSD Patents as an income-producing,
commercially valuable asset; and

ii.) Builds long-term Project value; and

iii.) Minimizes risks to Project assets.

B.) Promote the commercialization program by encouraging the
implementation and use of the MSD Patents through licenses, and
various relationships.

C.) Transform selected unauthorized use of the MSD Patents into
strategically and commercially valuable authorized use.

D.) Pursue licensing discussions with multiple simultaneous identified
prospects.

E.) Pursue parallel litigation on a selective strategic basis.

F.) Negotiate and document agreements relating to the Project and the
MSD Patents.

G.) ***

H.) ***

I.) ***

COMMERCIALIZATION GUIDELINES

A.) TPL may enter into any settlement or license agreement or other
sub-license or other agreement related to the MSD Patents which: ***

SCHEDULE 2
(Page 1 of 2)

B.) ***

ADDITIONAL ACTIONS

A.) With the prior written consent of the P-Newco Management Committee,
TPL may enter into any settlement or license agreement or other
sub-license or other agreement related to the MSD Patents which do
not meet the Guidelines.

B.) ***

C.) ***

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BUSINESS PLAN

A.) A Business Plan detailing the implementation of the Project is
attached hereto as Attachment I and will remain in full force and
effect until duly amended or replaced.

SCHEDULE 2
(Page 2 of 2)

ATTACHMENT 1 TO SCHEDULE 2

BUSINESS PLAN

***

ATTACHMENT 1 TO SCHEDULE 2
(Page 4 of 4)

SCHEDULE 3
SCHEDULE OF OUTSTANDING ACTIVITIES/RIGHTS/CLAIMS

AGREEMENT DATE

TPL

1. Moore - TPL Commercialization Agreement 22 OCT 02

2. P-Newco - TPL - PTSC Commercialization Agreement 25 MAY 05

3. TPL - Intel License Agreement 28 JUN 04

PTSC

1. PTSC - AMD License Agreement _________

2. P-Newco - TPL - PTSC Commercialization Agreement 25 MAY 05

3. ________________________

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