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Message: Alliacense Disputes

Unfortunately, I will not be able to listen in to the meeting tomorrow. If Cliff doesn't address the breach of the Novation agreement by Alliacense, and if questions are taken, would someone ask what the status is?

From Patriots 10Q

http://www.sec.gov/Archives/edgar/data/836564/000101968715001432/patriot_10q-022815.htm

p.20

Alliacense Disputes

PDS and Alliacense had been involved in multiple disputes regarding amounts asserted by Alliacense as owed by PDS. The disputed amounts included sums for past services and advances. On July 24, 2014, PDS and Alliacense entered into the Novation Agreement, which included provisions for resolving all of the claims in dispute for $623,000. Of that amount, $300,000 was paid by PDS to Alliacense in November 2013, with the balance paid by PDS to Alliacense in two payments of $161,500 each on June 20, 2014 and July 25, 2014. The Novation Agreement also provided for the addition of a second licensing company, however, to-date Alliacense has fulfilled only a portion of its obligations under the Novation Agreement associated with the deployment of the second licensing company despite our repeated demands. The PDS Management Committee is undertaking actions to compel Alliacense to perform, which if unsuccessful, could lead to the termination of the Alliacense agreements.

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