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10.In late 2008, I learned of negotiations underway between TPL and a third party leading to settlement of one of the patent infringement litigation matters.In that case the MMP portfolio was the primary focus of the litigation, but the defendant had also sued TPL for declaratory relief that it was not infringing on TPL’s Core Flash patent portfolio, in which Patriot has no involvement.The case settled by negotiated terms of the MMP and Core Flash patent licenses to the third party. During the course of that negotiation, I observed firsthand that the numbers changed such that the settlement consideration paid by that defendant became more heavily weighted in favor of the Core Flash portfolio and away from the MMP component.I asked questions about this of Mr. Leckrone and never received satisfactory answers.
11. Mr. Leckrone has made a number of representations of the “value” of the MMP portfolio.In general his position is that the MMP portfolio is worth $1,000,000.000 (One Billion U.S. Dollars).
12. I am particulary concerned by two licenses written by TPL in the first quarter of 2010 that appear substantially low in relation to the gross sales reported by those companies. The amounts of the licenses appear to be below the licensing criteria that we have agreed to with TL under the Business Plan of the ComAg.
