On the basis of the settlement reached, the parties hereby stipulate and agree

as follows:

1) Plaintiff e.Digital hereby voluntarily dismisses all claims brought in

this matter against Defendant and Counterclaimant Apple Inc. WITH

PREJUDICE.

2) Defendant and Counterclaimant Apple hereby voluntarily dismisses

all of its counterclaims brought in this matter against Plaintiff and

Counter-Defendant e.Digital WITHOUT PREJUDICE; and,

3) Each party shall bear its own costs and attorneys’ fees in this matter.

Thus, it is thereby respectfully requested, that the Court enter an order as

follows:

1) Plaintiff and Counter-Defendant e.Digital Corporation’s claims made

it in its Complaint against Apple are dismissed WITH PREJUDICE;

2) Defendant and Counterclaimant Apple’s against e.Digital Corporation

are hereby dismissed WITHOUT PREJUDICE; and,

3) Each party shall bear its own costs and attorneys’ fees.

Pursuant to Local Civil Rule 7.2, the parties hereto will separately submit a

Proposed Order granting the relief requested.

Respectfully submitted,

Dated: December 18, 2013

HANDAL & ASSOCIATES