Dear Ms. Hartley,

I’ve e-mailed similar questions in past years without receiving any response from PTSC. With the current turmoil at PTSC and with the developments in the reexamination process for the MMP patents, I’d like to ask it again. As you know, TPL, through Alliacense, licenses several patent portfolios. Of the 66 or so licenses that they have signed for the MMP, at least six of those same companies have purchased either CORE Flash or Fast Logic licenses as well, many contemporaneously with MMP. Since TPL is a private company, they are not obligated to announce their license signings, so these are simply six that we know of based on what they did announce. Obviously, this creates an opportunity for the Alliacense time and expenses to be mixed between portfolio licensing work. Based on the various agreements that govern the partnership between TPL and PTSC, they are simply required to present the expenses for reimbursement, some enumerated and some not.

With this in mind, I have a few questions.

1.Has PTSC ever audited the Alliacense expenses to verify that they are all accurately attributable to MMP licensing efforts, and not part of these other licensing activities?

2.Does PTSC have a regular (annual or otherwise) policy of control that provides independent auditing of these expenses?

3.Is there an agreed to rate structure and mark up for overhead and profit that TPL/Alliacense is allowed to charge PDS for its efforts in licensing the MMP and is that in line with market rates?

4.Are the any other companies to whom Alliacense has sold licenses for other portfolios in addition to the MMP license that they have not announced publicly?

5.When a licensee signs both an MMP license and a CORE Flash or Fast Logic license, how does PTSC verify and assure that the negotiations for the MMP license were not compromised in order to also secure the other license? For example, how is PTSC able to verify that Allicense did not discount the MMP license for which TPL shares the revenues with PTSC through PDS, so that they could secure the other license for which TPL does not share the revenues with PTSC?

Thank you for your attention to these questions and your anticipated prompt response.