Document:

nlst_Ex10_2

		
			Exhibit 10.2
		

		
			Confidential Treatment Requested by Netlist, Inc.
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		
			NETLIST, INC.
		

		

		
			INVESTMENT AGREEMENT
		

		
			Dated May 3, 2017
		

		

		
			TR GLOBAL FUNDING V, LLC
		

		
			as Investor
		

		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

		
			TABLE OF CONTENTS
		

			
					
						 

					
					
						 

					
					
						 

					
					
						Page

				
	
					
						 

					
					
						 

				
	
					
						SECTION 1.    DEFINITIONS; RULES OF CONSTRUCTION

					
2
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						1.1.

					
					
						 

					
					
						Definitions

					
2
				
	
					
						1.2.

					
					
						 

					
					
						Certain Matters of Construction

					
10
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 2.    REPRESENTATIONS AND WARRANTIES.

					
11
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2.1.

					
					
						 

					
					
						Plaintiff’s Representations and Warranties

					
11
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						2.1.1

					
					
						Common Interest/Confidentiality

					
11
				
	
					
						 

					
					
						 

					
					
						2.1.2

					
					
						Full Disclosure

					
11
				
	
					
						 

					
					
						 

					
					
						2.1.3

					
					
						No Impairment

					
11
				
	
					
						 

					
					
						 

					
					
						2.1.4

					
					
						Right to Bring the Litigation

					
11
				
	
					
						 

					
					
						 

					
					
						2.1.5

					
					
						Completeness and Accuracy

					
11
				
	
					
						 

					
					
						 

					
					
						2.1.6

					
					
						Liens of Investor

					
12
				
	
					
						 

					
					
						 

					
					
						2.1.7

					
					
						Taxes

					
12
				
	
					
						 

					
					
						 

					
					
						2.1.8

					
					
						Brokers

					
12
				
	
					
						 

					
					
						 

					
					
						2.1.9

					
					
						Compliance with Laws

					
12
				
	
					
						 

					
					
						 

					
					
						2.1.10

					
					
						Litigation

					
12
				
	
					
						 

					
					
						 

					
					
						2.1.11

					
					
						Patent Litigation

					
12
				
	
					
						 

					
					
						 

					
					
						2.1.12

					
					
						No Defaults

					
12
				
	
					
						 

					
					
						 

					
					
						2.1.13

					
					
						Defendant/Samsung

					
12
				
	
					
						 

					
					
						 

					
					
						2.1.14

					
					
						Litigation Counsel

					
12
				
	
					
						 

					
					
						 

					
					
						2.1.15

					
					
						IPR Counsel

					
12
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2.2.

					
					
						 

					
					
						No Representation or Warranty Regarding Assets or Litigation

					
13
				
	
					
						2.3.

					
					
						 

					
					
						Investor’s Representations

					
13
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						2.3.1

					
					
						Funds

					
13
				
	
					
						 

					
					
						 

					
					
						2.3.2

					
					
						Fully Informed

					
13
				
	
					
						 

					
					
						 

					
					
						2.3.3

					
					
						No Conflicts of Interest

					
13
				
	
					
						 

					
					
						 

					
					
						2.3.4

					
					
						No Waiver of Privilege

					
13
				
	
					
						 

					
					
						 

					
					
						2.3.5

					
					
						Secondary Market Financing

					
13
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2.4.

					
					
						 

					
					
						Mutual Representations

					
13
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						2.4.1

					
					
						Organization and Qualification

					
13
				
	
					
						 

					
					
						 

					
					
						2.4.2

					
					
						Power and Authority

					
14
				
	
					
						 

					
					
						 

					
					
						2.4.3

					
					
						Enforceability

					
14
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 3.    COVENANTS.

					
14
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						3.1.

					
					
						 

					
					
						Covenants of Plaintiff

					
14
				

		
			
		

		

		 

		

			 

		

 

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						3.1.1

					
					
						Reporting

					
14
				
	
					
						 

					
					
						 

					
					
						3.1.2

					
					
						Duty to Cooperate and Pursuit of Litigation

					
14
				
	
					
						 

					
					
						 

					
					
						3.1.3

					
					
						Pursuit of Claim

					
15
				
	
					
						 

					
					
						 

					
					
						3.1.4

					
					
						Duty to Inform

					
15
				
	
					
						 

					
					
						 

					
					
						3.1.5

					
					
						No Change in Litigation Counsel or IPR Counsel Without Investor Notice

					
16
				
	
					
						 

					
					
						 

					
					
						3.1.6

					
					
						Investor Consultation Rights Regarding Settlement

					
16
				
	
					
						 

					
					
						 

					
					
						3.1.7

					
					
						Good Faith Dealings

					
16
				
	
					
						 

					
					
						 

					
					
						3.1.8

					
					
						Compliance with the Investment Facility Documents

					
17
				
	
					
						 

					
					
						 

					
					
						3.1.9

					
					
						Required Actions

					
17
				
	
					
						 

					
					
						 

					
					
						3.1.10

					
					
						Compliance with Laws

					
17
				
	
					
						 

					
					
						 

					
					
						3.1.11

					
					
						Existence

					
17
				
	
					
						 

					
					
						 

					
					
						3.1.12

					
					
						Books and Records

					
17
				
	
					
						 

					
					
						 

					
					
						3.1.13

					
					
						Payment of Taxes

					
17
				
	
					
						 

					
					
						 

					
					
						3.1.14

					
					
						Permitted Liens

					
17
				
	
					
						 

					
					
						 

					
					
						3.1.15

					
					
						Distributions to Creditors

					
17
				
	
					
						 

					
					
						 

					
					
						3.1.16

					
					
						Fundamental Changes

					
17
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						3.2.

					
					
						 

					
					
						Waiver

					
17
				
	
					
						3.3.

					
					
						 

					
					
						Covenants of Investor

					
17
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						3.3.1

					
					
						No Waiver of Privilege

					
17
				
	
					
						 

					
					
						 

					
					
						3.3.2

					
					
						Good Faith Dealings

					
18
				
	
					
						 

					
					
						 

					
					
						3.3.3

					
					
						Settlement and Cooperation

					
18
				
	
					
						 

					
					
						 

					
					
						3.3.4

					
					
						No Present Interest in Patents

					
18
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 4.    COMMON INTEREST AND CONFIDENTIAL INFORMATION.

					
18
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						4.1.

					
					
						 

					
					
						Common Interest

					
18
				
	
					
						4.2.

					
					
						 

					
					
						Non-Disclosure Generally

					
18
				
	
					
						4.3.

					
					
						 

					
					
						Potentially Enforceable Disclosure Requests

					
19
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 5.    RETENTION OF COUNSEL.

					
19
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						5.1.

					
					
						 

					
					
						Retention of Litigation Counsel and IPR Counsel

					
19
				
	
					
						5.2.

					
					
						 

					
					
						Litigation Counsel

					
19
				
	
					
						5.3.

					
					
						 

					
					
						IPR Counsel

					
19
				
	
					
						5.4.

					
					
						 

					
					
						Compensation of Litigation Counsel

					
20
				
	
					
						5.5.

					
					
						 

					
					
						Compensation of IPR Counsel

					
20
				
	
					
						5.6.

					
					
						 

					
					
						Removal of Litigation Counsel

					
20
				
	
					
						5.7.

					
					
						 

					
					
						Removal of IPR Counsel

					
20
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 6.    FUNDING TERMS.

					
20
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						6.1.

					
					
						 

					
					
						Initial Investments

					
20
				
	
					
						6.2.

					
					
						 

					
					
						Post-Closing Investments

					
20
				
	
					
						6.3.

					
					
						 

					
					
						Counsel Fees

					
21
				
	
					
						6.4.

					
					
						 

					
					
						Review and Approval of Fee Arrangements

					
21
				

		
			
		

		

		 

		

			ii

		

 

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						6.4.1

					
					
						Investor Review and Approval

					
21
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						6.5.

					
					
						 

					
					
						Recoveries

					
21
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						6.5.1

					
					
						Resolution with Defendant

					
21
				
	
					
						 

					
					
						 

					
					
						6.5.2

					
					
						Recoveries in Forms Other Than Cash

					
22
				
	
					
						 

					
					
						 

					
					
						6.5.3

					
					
						Transaction Prior to Conclusion of Claim

					
22
				
	
					
						 

					
					
						 

					
					
						6.5.4

					
					
						Conditions to Change of Control or Impairment of Claim

					
22
				
	
					
						 

					
					
						 

					
					
						6.5.5

					
					
						No Commitment for Additional Investment

					
23
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 7.    CONDITIONS PRECEDENT.

					
23
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						7.1.

					
					
						 

					
					
						Conditions Precedent to Initial Investments

					
23
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						7.1.1

					
					
						Due Execution

					
23
				
	
					
						 

					
					
						 

					
					
						7.1.2

					
					
						No Dispositive Ruling

					
23
				
	
					
						 

					
					
						 

					
					
						7.1.3

					
					
						Request

					
23
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						7.2.

					
					
						 

					
					
						Conditions Precedent to All Investments

					
23
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						7.2.1

					
					
						No Default

					
23
				
	
					
						 

					
					
						 

					
					
						7.2.2

					
					
						Representations and Warranties True and Correct

					
23
				
	
					
						 

					
					
						 

					
					
						7.2.3

					
					
						No Contravention

					
24
				
	
					
						 

					
					
						 

					
					
						7.2.4

					
					
						Request

					
24
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 8.    SECURITY.

					
24
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						8.1.

					
					
						 

					
					
						Security Agreement

					
24
				
	
					
						8.2.

					
					
						 

					
					
						Condition to Investment

					
24
				
	
					
						8.3.

					
					
						 

					
					
						Plaintiff Assistance in Perfection of Security

					
24
				
	
					
						8.4.

					
					
						 

					
					
						Insolvency Proceeding

					
24
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 9.    TERMINATION BY INVESTOR.

					
24
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						9.1.

					
					
						 

					
					
						Investor Termination Events

					
24
				
	
					
						9.2.

					
					
						 

					
					
						Investor Termination Event Procedure

					
25
				
	
					
						9.3.

					
					
						 

					
					
						Waivers

					
25
				
	
					
						9.4.

					
					
						 

					
					
						Failure to Disclose Information Related to Claim

					
26
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						9.4.1

					
					
						Non-Material Disclosures

					
26
				
	
					
						 

					
					
						 

					
					
						9.4.2

					
					
						Procedure to Adjudicate Disclosure

					
26
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						9.5.

					
					
						 

					
					
						No Control of Litigation or Funded IPR Proceedings

					
26
				
	
					
						9.6.

					
					
						 

					
					
						Retention of Documents

					
26
				
	
					
						9.7.

					
					
						 

					
					
						Survival

					
26
				

		
			
		

		

		 

		

			iii

		

 

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 10.    TERMINATION BY PLAINTIFF.

					
26
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						10.1.

					
					
						 

					
					
						Plaintiff Termination Events

					
26
				
	
					
						10.2.

					
					
						 

					
					
						Plaintiff Termination Procedure

					
27
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 11.    MUTUAL TERMINATION EVENT.

					
27
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						11.1.

					
					
						 

					
					
						Mutual Termination

					
27
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 12.    TERMINATION.

					
27
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						12.1.

					
					
						 

					
					
						Remedies Upon Investor Termination Event

					
27
				
	
					
						12.2.

					
					
						 

					
					
						Remedies Upon Plaintiff Termination Event

					
27
				
	
					
						12.3.

					
					
						 

					
					
						Payments to Investor Upon Termination Event

					
27
				
	
					
						12.4.

					
					
						 

					
					
						Remedies Cumulative

					
27
				
	
					
						12.5.

					
					
						 

					
					
						Non-Performance

					
27
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 13.    PROCEEDS ACCOUNT.

					
28
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						13.1.

					
					
						 

					
					
						Proceeds Account

					
28
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 14.    DISPUTE RESOLUTION.

					
28
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						14.1.

					
					
						 

					
					
						Procedure

					
28
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						14.1.1

					
					
						Informal Settlement Meeting

					
28
				
	
					
						 

					
					
						 

					
					
						14.1.2

					
					
						Confidential

					
28
				
	
					
						 

					
					
						 

					
					
						14.1.3

					
					
						Statute of Limitations

					
29
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						14.2.

					
					
						 

					
					
						Arbitration

					
29
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						14.2.1

					
					
						Arbitral Confidentiality

					
29
				
	
					
						 

					
					
						 

					
					
						14.2.2

					
					
						Damages

					
29
				
	
					
						 

					
					
						 

					
					
						14.2.3

					
					
						Attorneys’ Fees

					
29
				
	
					
						 

					
					
						 

					
					
						14.2.4

					
					
						Federal Arbitration Act

					
29
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 15.    RIGHT OF FIRST REFUSAL.

					
29
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						15.1.

					
					
						 

					
					
						Further Litigations

					
29
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 16.    CONFIDENTIALITY.

					
29
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						16.1.

					
					
						 

					
					
						Information Disclosed Prior to the Effective Date

					
29
				
	
					
						16.2.

					
					
						 

					
					
						Information Disclosed From and After the Effective Date

					
30
				
	
					
						16.3.

					
					
						 

					
					
						Confidentiality of Investor’s Information

					
30
				
	
					
						16.4.

					
					
						 

					
					
						Agreement Confidentiality

					
30
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						16.4.1

					
					
						Strict Confidence

					
30
				
	
					
						 

					
					
						 

					
					
						16.4.2

					
					
						Disclosure to Court

					
31
				

		
			
		

		

		 

		

			iv

		

 

		

			 

		

	
					
						

					
						SECTION 17.    INDEMNIFICATION.

					
31
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						17.1.

					
					
						 

					
					
						Plaintiff Indemnification

					
31
				
	
					
						17.2.

					
					
						 

					
					
						Limitation of Liability for Certain Damages

					
31
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						SECTION 18.    MISCELLANEOUS.

					
31
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						18.1.

					
					
						 

					
					
						Governing Law

					
31
				
	
					
						18.2.

					
					
						 

					
					
						Jury Trial Waiver

					
32
				
	
					
						18.3.

					
					
						 

					
					
						Entire Agreement

					
32
				
	
					
						18.4.

					
					
						 

					
					
						Informed Consent and Knowledge

					
32
				
	
					
						18.5.

					
					
						 

					
					
						Expenses of the Parties

					
32
				
	
					
						18.6.

					
					
						 

					
					
						Cooperation

					
32
				
	
					
						18.7.

					
					
						 

					
					
						Waiver and Amendment

					
32
				
	
					
						18.8.

					
					
						 

					
					
						Construction

					
33
				
	
					
						18.9.

					
					
						 

					
					
						Successors and Assigns

					
33
				
	
					
						18.10.

					
					
						 

					
					
						Severability

					
33
				
	
					
						18.11.

					
					
						 

					
					
						Relationship of the Parties

					
33
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						18.11.1

					
					
						Investor

					
33
				
	
					
						 

					
					
						 

					
					
						18.11.2

					
					
						No Fiduciary Relationship

					
33
				
	
					
						 

					
					
						 

					
					
						18.11.3

					
					
						No Partnership

					
33
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						18.12.

					
					
						 

					
					
						No Rights of Third Parties

					
33
				
	
					
						18.13.

					
					
						 

					
					
						Notice to Parties

					
33
				
	
					
						18.14.

					
					
						 

					
					
						Counterparts

					
34
				

		
			 
		

		
			 
		

		
			

		 

		

			v

		

 

		

			 

		

		

		
			INVESTMENT AGREEMENT
		

		
			This Agreement (“Agreement”), effective as of May 3, 2017 (the “Effective Date”), is entered into by and between (a) TR Global Funding V, LLC, a Delaware limited liability company managed by TR Global Associates V, LLC (together with its successors and assigns, “Investor”) and (b) Netlist, Inc., a Delaware corporation (together with its successors and assigns, “Plaintiff”).
		

		
			RECITALS
		

		
			WHEREAS, at all times prior to and on the Effective Date, Plaintiff believes that it has valid and substantial claims against SK hynix Inc. and its Affiliates (collectively, the “Defendant”) arising from Defendant’s infringement of one or more claims of U.S. Patent Nos. 8,756,364, 8,516,185, 8,001,434, 8,359,501, 8,689,064, and 8,489,837 (collectively, the “Original Patents”) and 9,535,623, and 9,606,907 (the “Continuation Patents” and, together with the Original Patents, the “Patents”) based on Defendant’s manufacture, use, sale, offer for sale, importation, lease or other disposal of products that make unauthorized use of the technology described in the Patents; and
		

		
			WHEREAS, the Patents are owned in their entirety by Plaintiff; and 
		

		
			WHEREAS, Plaintiff already has filed litigation in the International Trade Commission (“ITC”) and the U.S. District Court for Central District of California (“CDCA”) against Defendant alleging that Defendant’s products infringe the Original Patents; and 
		

		
			WHEREAS, Plaintiff intends to add the Continuation Patents to the litigation currently pending in the CDCA; and
		

		
			WHEREAS, Defendant has commenced the Funded IPR Proceedings (as defined herein) against Plaintiff, six of which relate to the Patents; and 
		

		
			WHEREAS, Plaintiff seeks funding so that it may vigorously pursue the Litigation against Defendant and defend the Funded IPR Proceedings without having to bear the economic burden and risks of potentially expensive and uncertain litigation; and
		

		
			WHEREAS, Plaintiff wishes to secure from Investor an investment to vigorously pursue the Litigation against Defendant, including the defense of any Funded IPR Proceeding or other claim or counterclaim involving the enforceability of the Patents; and 
		

		
			WHEREAS, Plaintiff and Investor are committed to fully cooperating with one another in connection with Plaintiff’s prosecution and resolution of the Litigation with the intention of reasonably maximizing Recoveries; and 
		

		
			WHEREAS, Plaintiff and Investor wish to cooperate in connection with the prosecution and resolution of the Litigation and to share the Recoveries, under the terms and conditions set forth below, if the Litigation is successfully resolved, whether through a litigated resolution, settlement, a corporate transaction or otherwise; and 
		

		
			
		

		
			

		 

		

			1

		

 

		

			 

		

		

		
			WHEREAS, Investor is willing to provide an investment on a nonrecourse basis, such that it will be entitled to no payment on account of the Claims if there are no Recoveries, but provided that Investor will be secured by the Collateral to the extent of its rights to and interests in such Recoveries. 
		

		
			NOW, THEREFORE, Plaintiff and Investor agree as follows: 
		

		
			SECTION 1.   DEFINITIONS; RULES OF CONSTRUCTION
		

		
			1.1.       Definitions.  Capitalized terms have the meanings ascribed herein, whether in the preamble, the Recitals, the Definitions or otherwise.  
		

		
			“Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, controls or is controlled by or is under common control with the Person specified.  For purposes of this definition, “control” of a Person means the power, directly or indirectly, either to (a) vote 10% or more of the Equity Interests having ordinary voting power for the election of members of the board of directors of such Person or (b) direct or cause the direction of the management and policies of such Person whether by contract or otherwise.  For the avoidance of doubt, Investor shall not be considered an “Affiliate” of Plaintiff.
		

		
			“Agreement” has the meaning ascribed to such term in the preamble. 
		

		
			“Applicable Law” means all laws, rules, regulations and governmental guidelines applicable to the Person, conduct, transaction, agreement or matter in question, including all applicable statutory law, common law and equitable principles, and all provisions of constitutions, treaties, statutes, rules, regulations, orders and decrees of Governmental Authorities.
		

		
			“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the laws of, or are in fact closed in, New York.
		

		
			“Cash Recovery” has the meaning set forth in Section 6.5.1.
		

		
			“Cause” means the removal by Plaintiff of Litigation Counsel or IPR Counsel as a result of Litigation Counsel’s or IPR Counsel’s willful malfeasance, gross negligence, willful neglect, breach of any duty or responsibility owed by counsel to its client under the applicable rules of ethics or professional conduct or bad faith in the performance of its duties to Plaintiff.
		

		
			“Change of Control” means (i) the sale, lease or transfer (other than as a Permitted Lien), in one or a series of related transactions, of all or substantially all the assets of the Plaintiff and its Affiliates, taken as a whole, to a Person; or (ii) the acquisition by any Person or “group” (within the meaning of Sections 13(d)(3), 13(d)(5), or Section 14(d)(2) of the Exchange Act, or any successor provision), including any group acting for the purpose of acquiring, holding or disposing of securities (within the meaning of Rule 13d-5(b)(1) under the Exchange Act, or any successor provision) in a single transaction or in a related series of transactions, by way of merger, consolidation, amalgamation or other business combination or purchase of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision), of more than 25% or more on a fully diluted basis of the voting and/or economic interest in the equity 
		

		
			
		

		
			

		 

		

			2

		

 

		

			 

		

		

		
			securities of Plaintiff or (b) shall have obtained the power (whether or not exercised) to elect a majority of the members of the board of directors (or similar governing body) of Plaintiff.
		

		
			“Claim” means the Litigation, all settlement efforts arising from or related to the Litigation or the Patents, and any other proceeding within the scope of the Litigation Counsel Fee Agreement; provided,  however, that Claim shall not include the Funded IPR Proceedings, any third party claim against Plaintiff and any claim Defendant or any third party may assert against Plaintiff unrelated to the Patents, such as, without limitation, a claim that Plaintiff infringes Defendant’s patent(s) or other intellectual property.
		

		
			“Collateral” means the collateral provided to secure the obligations of Plaintiff under this Agreement, as described in the Security Agreement.
		

		
			“Common Interest Material” means any Document or Communication relating to the Claim or the Funded IPR Proceedings, including any evaluation thereof or negotiation with respect thereto, whether written or oral, between or among any of the Plaintiff, Litigation Counsel, IPR Counsel and Investor to the extent that such Document or Communication was intended to be protected by attorney-client privilege between Litigation Counsel and the Plaintiff, IPR Counsel and the Plaintiff, the work-product doctrine or any other privilege, immunity or protection from involuntary disclosure to another.  Notwithstanding the foregoing, information is not Common Interest Material if it (a) was or becomes generally available to the public other than by breach of this Agreement or a confidentiality agreement between or among any of Plaintiff, Litigation Counsel, IPR Counsel and Investor; or (b) is required to be disclosed by law, regulation or legal process.
		

		
			“Communication” means any oral, written or electronic transmission of information between entities and/or persons, including meetings, discussions, conversations, email messages (including attachments), text messages, voice mail messages, chat messages, instant messages, telephone calls, memoranda, notes, letters, telecopies, telexes, conferences or seminars.
		

		
			“Conclusion of the Claim” means the final resolution of the Claim, whether by settlement, the entry of a non-appealable final judgment against Plaintiff, the mutual agreement of the Parties to abandon the Claim, the enforcement of a final, non-appealable judgment in favor of Plaintiff or for any other means. 
		

		
			“Confidential Information” means: 
		

		
			(i)     the Common Interest Material; 
		

		
			(ii)    this Agreement, including any discussions and negotiations related to this Agreement, term sheets related to the subject matter of this Agreement and drafts of such term sheets and of this Agreement; 
		

		
			(iii)   to the extent not already covered as Common Interest Material, (a) Plaintiff’s, Litigation Counsel’s, IPR Counsel’s or Investor’s strategies, tactics, analyses or expectations regarding the Claim, the Litigation, or the Funded IPR Proceedings; (b) any professional work product relating to the Claim, the Litigation, or the Funded IPR Proceedings, whether prepared for Plaintiff, Litigation Counsel, IPR Counsel or Investor; and (c) any other material prepared by or 
		

		
			
		

		
			

		 

		

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			for Plaintiff, Litigation Counsel, IPR Counsel or Investor with the expectation that such material would be maintained as confidential from others. 
		

		
			(iv)   all Documents and Communications provided between or among any of Plaintiff, Litigation Counsel, IPR Counsel and Investor pursuant to a confidentiality agreement.  
		

		
			Notwithstanding the foregoing, information is not Confidential Information if it (a) was or becomes generally available to the public other than by breach of this Agreement or a confidentiality agreement between or among any of Plaintiff, Litigation Counsel, IPR Counsel and Investor; (b) was, as documented by the written records of the receiving Party, known by the receiving Party at the time of disclosure to it or was developed by the receiving Party or its representatives without using Confidential Information or information derived from Confidential Information; (c) was disclosed to the receiving Party in good faith by a third party who has an independent right to disclose such subject matter and information; or (d) is required to be disclosed by law, regulation or legal process. 
		

		
			“Continuation Patents” has the meaning set forth in the Recitals.
		

		
			“Costs” means, collectively, Litigation Costs and IPR Costs.
		

		
			“Debt” means, with respect to any Person, (i) all obligations (whether secured or unsecured) of such Person for money borrowed or with respect to deposits or advances of any kind and all other obligations (contingent or otherwise) of such Person with respect to surety bonds, letters of credit and bankers’ acceptances, whether or not matured; (ii) all obligations of such Person evidenced by notes, bonds, debentures, loan agreements, reimbursement agreements, note subscription agreements or similar instruments (including senior, mezzanine and junior borrowings); (iii) all obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property); (iv) all capital lease obligations of such Person; (v) all obligations in respect of derivative instruments to the extent required to be reflected as a liability on a balance sheet of such Person under GAAP; (vi) all indebtedness referred to in clause (i), (ii), (iii) or (iv) above secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property (including accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such indebtedness; and (vii) all Debt of others guaranteed by such Person or for which such Person has otherwise assumed responsibility on, before or after the date such indebtedness is incurred.
		

		
			“Defendant” has the meaning set forth in the Recitals.
		

		
			“Disclosing Party” has the meaning set forth in Section 4.3.
		

		
			“Document” means any recorded information (whether printed, typed, photocopied, handwritten, recorded, electronically stored, produced or reproduced or created by any other process), tangible thing or any other compilation of information that is within Plaintiff’s possession, custody or control, including any and all:
		

		
			
		

		
			

		 

		

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			(a) accountants’ work papers, advertising, circulars, advisories, agreements, appointment books, articles, bills, binders, books, brochures, bulletins, cables, calendars, charts, checks, circulars, compilations, computer printouts, confirmations, contracts, correspondence, desk pads, diaries, drafts, drawings, exhibits, facsimiles, financial statements, ledgers, forecasts, graphs, guidelines, invoices, instructions, letters, lists, logs, manuals, memoranda, messages, microfiche, microfilm, minutes of meetings, notebooks, notes, outlines, pamphlets, periodicals and clippings from periodicals, placement slips, pleadings, policies, post-it notes, projections, prospectuses, questionnaires, receipts, records, reports, rules, schedules, statements, studies, subscription agreements or pages, summaries, tables, telecopies, telefaxes, telegrams, telephone messages, telexes, translations, treaties, wire messages and worksheets; 
		

		
			(b) graphic or audio records or representations of any kind, including photographs, charts, drawings, graphs, microfiche, microfilm, videotapes, recordings and motion pictures; 
		

		
			(c) electric, electronic, magnetic, mechanical and optical records or representations of any kind, including e-mails, tapes, cassettes, computer discs, recordings, computer memories or other electronic data compilations;
		

		
			(d) final versions and all drafts; and
		

		
			(e) all originals, as well as copies that vary from the original in any respect, including variations due to handwritten notes, editing, interlineations, blind copies and other alterations.
		

		
			“Effective Date” has the meaning set forth in the preamble.
		

		
			“Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.
		

		
			“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.
		

		
			“Existing Financing Documents” means (i) all “Loan Documents” as defined in the Loan and Security Agreement, dated as of October 21, 2009, between Silicon Valley Bank and Plaintiff (as the same has been amended), and (ii) all “Transaction Documents” as defined in the Note Agreement.
		

		
			“Final Order” means an order or judgment of a court of competent jurisdiction that has been entered on the docket maintained by the clerk of such court and has not been reversed, vacated, or stayed and as to which (i) the time to appeal, petition for certiorari, or move for a new 
		

		
			 
		

		
			

		 

		

			5

		

 

		

			Confidential Treatment Requested.  Omitted portions are marked with [*****] and
have been filed separately with the Securities and Exchange Commission.

		

		

		
			trial, reargument, or rehearing has expired and no appeal, petition for certiorari, or other proceedings for a new trial, reargument, or rehearing is then pending or, (ii) if an appeal, writ of certiorari, new trial, reargument, or rehearing thereof has been sought, (a) such order or judgment has been affirmed by the highest court to which such order was appealed, certiorari has been denied, or a new trial, reargument, or rehearing has been denied or resulted in no modification of such order and (b) the time to take any further appeal, petition for certiorari, or move for a new trial, reargument, or rehearing has expired; provided, however, that the possibility that a motion under Rule 60 of the Federal Rules of Civil Procedure may be filed relating to such order shall not prevent such order from being a Final Order, except as provided in the Federal Rules of Appellate Procedure.
		

		
			“Funded IPR Proceeding” and “Funded IPR Proceedings” means [*****]
		

		
			  “Funding Date” means, individually and collectively, the Initial Funding Date and each Subsequent Funding Date.
		

		
			“Governmental Authority” means any federal, state, local, foreign or other agency, authority, body, commission, court, instrumentality, political subdivision, or other entity or officer exercising executive, legislative, judicial, regulatory or administrative functions for any governmental, judicial, investigative, regulatory or self-regulatory authority.
		

		
			“Indemnitees” has the meaning set forth in Section 17.1.
		

		
			“Indemnified Matters” has the meaning set forth in Section 17.1.
		

		
			“Initial Funding Date” has the meaning ascribed to such term in Section 7.1.
		

		
			“Insolvency Proceeding” means any case or proceeding commenced by or against a Person under any state, federal or foreign law for, or any agreement of such Person to, (a) the entry of an order for relief under the Bankruptcy Code, or any other insolvency, debtor relief or debt adjustment law; (b) the appointment of a receiver, trustee, liquidator, administrator, conservator or other custodian for such Person or any part of its property; or (c) an assignment for the benefit of creditors.
		

		
			“Intercreditor Agreement” means, collectively, each of (i) the Intercreditor Agreement, dated as of the Effective Date (the “SVB Intercreditor Agreement”), among Investor, Silicon Valley Bank, and Plaintiff, in form and substance satisfactory to Investor, a copy of which is attached hereto as Exhibit A-1, and (ii) the Intercreditor Agreement, dated as of the Effective Date (the “SVIC Intercreditor Agreement”), among Investor, SVIC and Plaintiff, in form and substance satisfactory to Investor, a copy of which is attached hereto as Exhibit A-2.
		

		
			“Investment” means sums advanced by Investor to pay Costs hereunder.
		

		
			
		

		
			

		 

		

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			Confidential Treatment Requested.  Omitted portions are marked with [*****] and
have been filed separately with the Securities and Exchange Commission.

		

		

		
			“Investment Facility” means the investment facility established hereunder for Investments by Investor.
		

		
			“Investment Facility Documents” means this Agreement, any Security Documents, the Intercreditor Agreement and any other agreement, instrument, certificate, report and other document executed and delivered pursuant hereto or thereto or otherwise evidencing or securing any Investment or any other Obligation.
		

		
			“Investment Request” means (a) a request for payment of Litigation Costs provided by Litigation Counsel to Investor in substantially the form annexed as Exhibit B1, which shall be accompanies by a certification from Plaintiff in substantially the form annexed as Exhibit B2, and (b) a request for payment of IPR Costs provided by Plaintiff to Investor, in each case to request an Investment, in substantially the form annexed as Exhibit B3.  Each Investment Request shall have attached to it the invoices that are to be paid by Investor pursuant to the terms of this Agreement.
		

		
			“Investor” has the meaning set forth in the preamble.
		

		
			“Investor Billing Guidelines” means the Investor Litigation Management and Billing Guidelines for Retained Counsel Effective as of January 1, 2017 (as the same may be amended or modified from time to time).
		

		
			“Investor Termination Event” has the meaning set forth in Section 9.1.
		

		
			“IPR Costs” means the costs properly incurred in defending the Funded IPR Proceedings from and after January 1, 2017 by or on behalf of Plaintiff, including the professional fees and expenses (including travel expenses) incurred by IPR Counsel in accordance with the IPR Counsel Fee Agreement and, subject to the terms of this Agreement: (i) professional fees and expenses for advisors, experts or witnesses retained by IPR Counsel, (ii) fees and expenses for trial preparation and presentation support services, (iii) fees and expenses for third-party document collection, storage and management fees, and (iv) fees due to the court or other costs within the scope of the IPR Counsel Fee Agreement, which costs shall not exceed the IPR Fee Cap.
		

		
			“IPR Counsel” means, collectively, Morrison & Foerster LLP and McAndrews Held and Malloy Ltd. and, subject to Investor’s rights pursuant to Section 3.1.5, any successor counsel retained by Plaintiff to defend the Claim. 
		

		
			“IPR Counsel Fee Agreement” has the meaning set forth in Section 5.5.
		

		
			“IPR Fee Cap” means [*****]; provided, that in no event shall (a) fees paid to IPR Counsel incurred in connection with any individual Funded IPR Proceeding exceed [*****] and (b) expenses incurred in connection with any individual Funded IPR Proceeding exceed [*****].      
		

		
			“ITC” has the meaning set forth in the Recitals.  
		

		
			“Lien” means any mortgage, deed of trust, pledge, lien (common law, statutory or otherwise), security interest, charge or other encumbrance or security or preferential arrangement of any nature, including, without limitation, any conditional sale or title retention arrangement, 
		

		
			
		

		
			

		 

		

			7

		

 

		

			Confidential Treatment Requested.  Omitted portions are marked with [*****] and
have been filed separately with the Securities and Exchange Commission.

		

		

		
			any capitalized lease and any assignment, deposit arrangement or financing lease intended as, or having the effect of, security.
		

		
			“Litigation” means, collectively, the investigation pending in the ITC Inv. No. 337-TA-1023 alleging that Defendant’s products infringe the Original Patents and the lawsuit Plaintiff filed against Defendant in the U.S. District Court for Central District of California Case No. 8-16-cv-1605, alleging that Defendant’s products infringe the Patents.  For the avoidance of doubt, consistent with Section I of the Litigation Counsel Fee Agreement (Scope of Engagement), “Litigation” does not include any appeal taken from a decision or adjudication reached or issued in either of Inv. No. 337-TA-1023 or Case No. 8-16-cv-1605, or any other litigation or adversarial proceeding. 
		

		
			“Litigation Costs” means the costs properly incurred in prosecuting the Claim from and after January 1, 2017 by or on behalf of Plaintiff, including the professional fees and expenses (including travel expenses) incurred by Litigation Counsel in accordance with the Litigation Counsel Fee Agreement and, subject to the terms of this Agreement: (i) professional fees and expenses for advisors, experts or witnesses retained by Litigation Counsel, (ii) fees and expenses for trial preparation and presentation support services, (iii) fees and expenses for third-party document collection, storage and management fees, and (iv) fees due to the court, ITC or other costs within the scope of the Litigation Counsel Fee Arrangement; provided, that, Investor shall not pay fees in excess of the ITC Fee Cap or the District Court Fee Cap (each as defined in the Litigation Counsel Fee Agreement).  For avoidance of doubt, Litigation Costs does not include costs incurred in connection with any patent other than the Patents or any matter not within the scope of the Litigation.
		

		
			“Litigation Counsel” means Mintz Levin; any additional counsel Mintz Levin reasonably determines to associate; and, subject to Investor’s rights pursuant to Section 3.1.5, any successor counsel retained by Plaintiff to prosecute the Claim.
		

		
			“Litigation Counsel Fee Agreement” has the meaning set forth in Section 5.4.
		

		
			“Material Adverse Change” means a material adverse change, as determined by the Investor in good faith, in or on (i) the ability of the Plaintiff to perform its obligations under this Agreement or any other Investment Document, (ii)  Investor’s right, title and interest in the Collateral or on the material rights and remedies of Investor under any Investment Document, (iii) the validity or enforceability of this Agreement or any other Investment Document, or (iv) the business, financial position, assets or properties of Plaintiff or its Affiliates.  For the avoidance of doubt, a Material Adverse Change does not include a material adverse change to the likelihood of the success of the prosecution of the Claim.
		

		
			“Mintz Levin” means Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
		

		
			“Note Agreement” means the Senior Secured Convertible Promissory Note and Warranty Purchase Agreement, dated as of November 18, 2015, between SVIC, Plaintiff, and each Subsidiary party thereto, as the same has been amended, restated, or otherwise modified.
		

		
			 
		

		
			

		 

		

			8

		

 

		

			 

		

		

		
			“Obligations” means (a) the obligation of Plaintiff to pay to Investor from the Recoveries pursuant to the terms of this Agreement, (b) the obligations of Plaintiff under Section 17.1, and (c) any other obligation of Plaintiff to pay money to Investor under this Agreement.
		

		
			“Original Patents” has the meaning set forth in the Recitals.
		

		
			“Parties” means Investor and Plaintiff, each of which, alone, is a “Party.” 
		

		
			“Patents” has the meaning set forth in the Recitals.
		

		
			“Payment Procedures” has the meaning set forth in Section 6.1.
		

		
			“Permitted Liens” means (i) Liens securing the Obligations, and (ii) Liens permitted under the Existing Financing Documents.
		

		
			“Person” means an individual, partnership, limited liability company, trust, estate, corporation, custodian, nominee or any other individual or entity acting on its own or in any representative capacity.
		

		
			“Plaintiff” has the meaning set forth in the preamble.
		

		
			“Plaintiff Termination Event” has the meaning set forth in Section 10.1.
		

		
			“Pre-Effective Date NDA” means the Nondisclosure Agreement, dated January 28, 2017, between the Plaintiff and Investor Capital Management, LLC.
		

		
			“Proceeds Account” means an account established as described in Section 13.1.  
		

		
			“Recoveries” means any and all consideration and value received by Plaintiff (prior to any netting, offset, reduction or deduction of any fees, costs, expenses, payment of taxes or payment of any other amounts) in partial or complete resolution of the Claim or the Litigation, including: (a) any and all gross, pre-tax monetary awards, damages, recoveries, judgments or other property or value awarded to, recovered by or on behalf of (or reduced to a debt owed to) Plaintiff or Investor on account or as a result or by virtue (directly or indirectly) of the Claim, whether by negotiation, arbitration, mediation, diplomatic efforts, lawsuit, settlement, or pursuant to a corporate transaction of any nature, or otherwise, and includes all of the Plaintiff’s legal and/or equitable rights, title and interest in and/or to any of the foregoing, whether in the nature of ownership, lien, security interest or otherwise, plus (b) any recovered interest, penalties, attorneys’ fees and costs in connection with any of the foregoing (including, without limitation, post-judgment interest, costs and fees), plus (c) any consequential, actual, punitive, exemplary or treble damages awarded or recovered on account thereof, plus (d) any interest awarded or later accruing on any of the foregoing (including, without limitation, post-judgment interest), plus (e) any recoveries against attorneys, accountants, experts or officers in connection with any of the foregoing or the pursuit of the Claim.
		

		
			“Reference Entity” means, individually and collectively, the Defendants and any other parties listed as defendants or counterclaim defendants in the Litigation, jointly and severally, and including their Affiliates, and any other person or entity added or joined to the Litigation from 
		

		
			
		

		
			

		 

		

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			time to time as a defendant or indemnitor or against whom proceedings are asserted or threatened even if such person or entity is not named or served.
		

		
			“Representatives” has the meaning set forth in Section 16.4.1.
		

		
			“Security Agreement” has the meaning set forth in Section 8.1.
		

		
			“Security Documents” means this Agreement and all other agreements, instruments and other documents delivered by or on behalf of Plaintiff that create or perfect any Lien on any property of Plaintiff.
		

		
			“Special Damages” has the meaning set forth in Section 17.2.
		

		
			“Subsequent Funding Date” has the meaning set forth in Section 1.1.
		

		
			“SVIC” means SVIC No. 28 New Technology Business Investment L.L.P. 
		

		
			“Tax Returns” has the meaning set forth in Section 2.1.7.
		

		
			“Termination Date” means the earlier to occur of (a) the date of termination of this Agreement by written consent of the Parties pursuant to Sections 11 and 12 of this Agreement, (b) the date of termination of this Agreement by Plaintiff or Investor pursuant to Sections 9,  10 and 12 of this Agreement, or (c) the date by which (i) all of the Litigation has been resolved by Final Order or settlement among the parties, (ii) all of the Funded IPR Proceedings have been resolved by Final Order or settlement among the parties, (iii) Plaintiff has remitted to Investor the Gross Recoveries, and (iv) all Obligations have been indefeasibly paid in full.
		

		
			“Termination Event” has the meaning set forth in Section 10.2.
		

		
			1.2.       Certain Matters of Construction.  The terms “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision.  Any pronoun used shall be deemed to cover all genders.  In the computation of periods of time from a specified date to a later specified date, “from” means “from and including,” and “to” and “until” each mean “to but excluding.”  The terms “include,” “includes,” and “including” shall mean “including, without limitation” and, for purposes of each Investment Facility Document, the parties agree that the rule of ejusdem generis shall not be applicable to limit any provision.  Section titles appear as a matter of convenience only and shall not affect the interpretation of any Investment Facility Document.  All references to (a) laws or statutes include all related rules, regulations, interpretations, amendments and successor provisions; (b) any document, instrument or agreement include any amendments, waivers and other modifications, extensions or renewals (to the extent permitted by the Investment Facility Documents); (c) any section mean, unless the context otherwise requires, a section of this Agreement; (d) any exhibits or schedules mean, unless the context otherwise requires, exhibits and schedules attached hereto, which are hereby incorporated by reference; (e) any Person includes successors and permitted assigns of such Person; (f) time of day means time of day at Investor’s notice address as specified in Section 18.3; or (g) discretion of a Person means the sole and absolute discretion of such Person.  The Definitions to this Agreement are a material part of this Agreement having the same force and effect as a mutual representation, warranty and covenant of the Parties.  
		

		
			
		

		
			

		 

		

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			References to agreements and other documents shall be deemed to include all subsequent amendments and other modifications thereto.
		

		
			SECTION 2.    REPRESENTATIONS AND WARRANTIES.
		

		
			2.1.      Plaintiff’s Representations and Warranties.  To induce Investor to enter into this Agreement and to make the Investments, Plaintiff represents and warrants on the Effective Date, and each Funding Date that:
		

		
			2.1.1    Common Interest/Confidentiality. Plaintiff has received advice from legal counsel of its choosing regarding the common interest doctrine and confidentiality in the context of and in connection with this Agreement.
		

		
			2.1.2    Full Disclosure. Plaintiff has (a) taken all reasonable efforts to provide Investor all material information related to the Claim and the Funded IPR Proceedings, other than any information protected solely by the attorney-client privilege, and (b) not intentionally withheld from Investor any non-privileged material information related to the Claim and the Funded IPR Proceedings; provided, as to both (a) and (b), that such information was reasonably necessary for Investor to evaluate the merits and value of, and the ability of Plaintiff to collect on, the Claim.  There is no information in the knowledge, possession or control of Plaintiff or any of its Representatives that is or is likely to be material to Investor’s assessment of the Claim and the Funded IPR Proceedings that has not been disclosed to Investor, and Plaintiff believes (and does not have, and has not been informed by any of its Representatives of, any belief to the contrary) that the Claim and the Funded IPR Proceedings are meritorious and Plaintiff is likely to prevail.
		

		
			2.1.3    No Impairment.  
		

		
			(a)     Plaintiff has not taken any action (including executing documents), or failed to take any action, the result of which would be to (i) adversely affect the Claim and the Funded IPR Proceedings, or (ii) except as set forth in the Existing Financing Documents, give any Person other than Plaintiff, Litigation Counsel, and Investor an interest in the Recoveries.  
		

		
			(b)     Except for the Litigation and the proceedings listed on Schedule 2.1.11, Plaintiff has not instituted any action, suit or arbitration concerning the Claim and will not institute any action, suit or arbitration concerning the Claim other than with the express written authorization of Investor until after the Conclusion of the Claim.
		

		
			2.1.4    Right to Bring the Litigation.  Plaintiff represents that it has the full right, title and authority to bring the Litigation and that no Person other than the Plaintiff has the right, title and authority to assert the Claim.  Plaintiff represents that no Person other than the Plaintiff has the right, title and authority to claim any right to or interest in the Claim or Recoveries, other than as provided in this Agreement.  Other than financing statements filed in favor of holders of Permitted Liens, no effective financing statement, notice of tax lien or other instrument similar in effect under any applicable law covering all or any part of the Collateral is on file in any filing office with respect to a valid Lien.
		

		
			2.1.5    Completeness and Accuracy.  (a) All material information Plaintiff has provided, or caused to be provided, to Investor, Litigation Counsel and/or IPR Counsel is to the 
		

		
			
		

		
			

		 

		

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			best of Plaintiff’s knowledge and belief true and correct in all material respects, and (b) all Plaintiff’s representations and warranties in this Agreement are to the best of Plaintiff’s knowledge and belief true and correct in all material respects.
		

		
			2.1.6    Liens of Investor.  All Liens granted to Investor in the Collateral are duly perfected (subject to the Perfection Requirements, as defined in the Security Agreement) (a) first priority Liens with respect to the Collateral other than the Patents, and (b) second Priority Liens with respect to the Patents.  Plaintiff has not transferred any interest in or created any Lien upon the Claim or Plaintiff’s right to any proceeds thereof (except Permitted Liens).
		

		
			2.1.7    Taxes.  Plaintiff has filed all federal, state, local and non-U.S. tax returns and other reports (“Tax Returns”) that it is required by Applicable Law to file.  All such Tax Returns were correct and complete in all material respects.  All taxes due and owing by the Plaintiff (whether or not shown on any Tax Return) have been paid.  There are no Liens for taxes (other than taxes not yet due and payable or taxes that are being contested in good faith to the extent reflected on Plaintiff’s financial statements) upon any Property of Plaintiff.
		

		
			2.1.8    Brokers.  There are no brokerage commissions, finder’s fees or investment banking fees payable in connection with any transactions contemplated by the Investment Facility Documents.
		

		
			2.1.9    Compliance with Laws.  Plaintiff has duly complied in all material respects with all Applicable Law.  To the best of Plaintiff’s knowledge, there have been no citations, notices or orders of material noncompliance issued to Plaintiff under any Applicable Law.
		

		
			2.1.10  Litigation.  Except for the Litigation, the Funded IPR Proceedings, and the proceedings or investigations listed on Schedule 2.1.10, there are no proceedings or investigations pending or threatened against Plaintiff.
		

		
			2.1.11  Patent Litigation.  The Litigation, the Funded IPR Proceedings and the proceedings listed on Schedule 2.1.11 represent all currently pending litigation or other proceedings regarding the Patents.
		

		
			2.1.12  No Defaults.  No event or circumstance has occurred or exists that constitutes an Investor Termination Event.
		

		
			2.1.13  Defendant/Samsung.  To the best of Plaintiff’s knowledge, Defendant is not an Affiliate or otherwise related to Samsung Electronics Co., Ltd. or any of its Affiliates.
		

		
			2.1.14  Litigation Counsel.  Litigation Counsel has agreed that it will comply with (a) the provisions that relate to Litigation Counsel herein, including the Payment Procedures set forth on Exhibit E, and (b) the Investor Billing Guidelines, a copy of which Plaintiff has provided to Litigation Counsel.
		

		
			2.1.15  IPR Counsel.  Each IPR Counsel has agreed that it will comply with (a) the provisions that relate to IPR Counsel herein, including the Payment Procedures set forth on Exhibit E, and (b) the Investor Billing Guidelines, a copy of which Plaintiff has provided to IPR Counsel.
		

		
			
		

		
			

		 

		

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			2.2.      No Representation or Warranty Regarding Assets or Litigation.  Nothing in this Agreement shall be construed to be (and Plaintiff expressly disclaims making) any representation or warranty regarding the merits or potential outcome of the Litigation or the Funded IPR Proceedings.
		

		
			2.3.      Investor’s Representations.  Investor hereby represents and warrants on the Effective Date that:
		

		
			2.3.1    Funds. Investor has and will continue to have sufficient funds available to fulfill its financial obligations under this Agreement. 
		

		
			2.3.2    Fully Informed.  Investor has reviewed all the information about the Claim and Funded IPR Proceedings provided to it.
		

		
			2.3.3    No Conflicts of Interest. 
		

		
			(a)     Investor has not: (a) paid a referral fee to any party, including Litigation Counsel, in connection with the Claim, Plaintiff or this Agreement; (b) entered any transaction with Litigation Counsel that has or would make Litigation Counsel a part owner of Investor; (c) contracted with any other party or potential party to the Claim; or (d) engaged in negotiations with any other party or potential party to the Claim.
		

		
			(b)     Investor will not: (a) pay a referral fee to any party, including Litigation Counsel, in connection with the Claim, Plaintiff or this Agreement; (b) transfer or agree to transfer any ownership in Investor to Litigation Counsel; or (c) contract with any other party or potential party to the Claim without full disclosure to Plaintiff. 
		

		
			(c)     Investor does not have a duty or contractual or other obligation to monetize its interest in the Claim within any particular time frame. 
		

		
			2.3.4    No Waiver of Privilege.  Investor has not disclosed any Common Interest Material to anyone without the prior written consent of Plaintiff.
		

		
			2.3.5    Secondary Market Financing.
		

		
			(a)     Investor has not sold or entered negotiations to sell any or all of its interest in the Claim or the Recoveries to anyone. 
		

		
			(b)     Investor will not securitize its interest in the Claim or the Recoveries.
		

		
			2.4.      Mutual Representations.
		

		
			2.4.1    Organization and Qualification.  Each Party is duly organized and validly existing under the laws of the State of Delaware and has all the requisite power and authority to own, lease and operate its assets, to execute, deliver and perform the Investment Facility Documents and to carry on its business as now conducted.
		

		
			
		

		
			

		 

		

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			2.4.2    Power and Authority.  Each Party represents that it has expressly authorized its undersigned representative to execute this Agreement on the Party’s behalf as its duly authorized agent.  Each Party is duly authorized to perform its obligations under the Investment Facility Documents and no other authorization, approval or other action by, or notice to, any Governmental Authority or any other Person is required in connection with the due execution, delivery and performance of the Investment Facility Documents.  The execution, delivery and performance of the Investment Facility Documents do not violate or contravene any Applicable Law or any contract or other agreement to which each Party is a party, or any order or decree directly binding on it.
		

		
			2.4.3    Enforceability.  Each Investment Facility Document is a legal, valid and binding obligation of Plaintiff, enforceable in accordance with its terms.  Each Party represents that the making and performance of this Agreement will not violate any provision of the Party’s articles of incorporation, membership agreement, charter, bylaws or other governing documents or any other agreement or instrument to which such Party is bound.  Each Party has had the opportunity to consult with legal counsel of its choosing with respect to the terms and effect of the Investment Facility Documents.
		

		
			SECTION 3.  COVENANTS.
		

		
			3.1.      Covenants of Plaintiff.
		

		
			3.1.1    Reporting.  Plaintiff covenants that all representations and warranties as to statements of fact shall, to the best of its knowledge and belief, remain true throughout the term of this Agreement and that it will promptly inform Investor if it determines that any such representation and warranty is not true.  Plaintiff further will use its best efforts to provide or cause to be provided to Investor and Litigation Counsel all material information relating to the merits and value of, and the ability of Plaintiff to collect on, the Claim, other than (with respect to Investor only) any information protected solely by the attorney-client privilege.  Notwithstanding the foregoing, nothing in this Section 3.1.1 shall affect the obligations of Plaintiff or Litigation Counsel to comply with the requirements of any protective order.  Plaintiff shall promptly provide to Investor copies of any reports regarding the Litigation and the Funded IPR Proceedings made publicly available after the Effective Date.
		

		
			3.1.2    Duty to Cooperate and Pursuit of Litigation. Plaintiff covenants to diligently and in good faith cooperate in and pursue the prosecution of the Claim, and the defense of the Funded IPR Proceedings.  Plaintiff shall: (a) pursue the Claim and all of the Plaintiff’s legal and equitable rights arising in connection with such Claim; (b) use its best efforts to bring about the reasonable monetization of the Claim; and (c) collect and enforce any settlement, final judgment or award; provided, however, that nothing in this Agreement shall require Plaintiff to continue to prosecute the Claim to the extent that Plaintiff reasonably determines that the Claim no longer has merit.  Plaintiff will promptly and fully assist Litigation Counsel and IPR Counsel, as applicable, as reasonably necessary to efficiently conduct and successfully conclude prosecution of the Claim and the Funded IPR Proceedings.  Notwithstanding the foregoing, Plaintiff agrees not to discontinue prosecution of the Claim or defense of the Funded IPR Proceedings without providing thirty days’ written notice to Investor and without giving good faith consideration to Investor’s response, if any; provided, further, that if Plaintiff proceeds to discontinue prosecution of the Claim 
		

		
			
		

		
			

		 

		

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			or defense of the Funded IPR Proceedings over Investor’s objection, Investor shall have the right to immediately cease funding hereunder and terminate this Agreement in accordance with Sections 9 and 12.  For the avoidance of doubt, such cooperation includes all actions any party to litigation can usually be expected to take, including, (a) making Documents and witnesses reasonably available to Litigation Counsel and IPR Counsel, as applicable; (b) responding to and participating in the discovery process to the full extent reasonably requested by Litigation Counsel and IPR Counsel, as applicable, including the production of all responsive Documents as directed by Litigation Counsel and IPR Counsel, as applicable; (c) submitting to examination, whether in deposition, at evidentiary hearings or otherwise; (d) verifying statements under oath; (e) appearing at any proceedings; and (f) making decisions concerning litigation and settlement strategy in a prompt and reasonable manner.  The examples in the preceding sentence are illustrative and do not limit Plaintiff’s duty to cooperate in any way.
		

		
			3.1.3    Pursuit of Claim.  Plaintiff shall not do anything to prejudice any benefits, rights or causes of action sought or advanced in connection with, or the general pursuit of, the Claim.
		

		
			3.1.4    Duty to Inform.  Subject to other subsections in this Section 3.1, Plaintiff agrees and undertakes to keep Investor informed or to cause Investor to be informed about the Claim and the Funded IPR Proceedings at all times and to provide all information regarding the Claim and the Funded IPR Proceedings, including at Investor’s request.  Without limiting the generality of the foregoing, Plaintiff acknowledges and agrees as follows:
		

		
			(a)     Non-Privileged Information. Pursuant to the Litigation Counsel Fee Agreement and the IPR Counsel Fee Agreement, Plaintiff has instructed Litigation Counsel and IPR Counsel, and if further instructions are needed, will use its best efforts to timely instruct Litigation Counsel and IPR Counsel, to provide Investor with all material non-privileged information relating to the Claim as soon as practicable, regardless of the information’s source, confidentiality or form, unless to do so would be a breach of an obligation to a third party, an order of a court or other governmental authority, or Investor already possesses or controls such information.
		

		
			(b)     Work Product. Acknowledging that this Agreement contains provisions requiring each Party to protect the confidentiality of any Confidential Information disclosed to it and that some such information is protected by the work product doctrine, Plaintiff has instructed Litigation Counsel, as set forth in the Litigation Counsel Fee Agreement, and IPR Counsel, as set forth in the IPR Counsel Fee Agreement, and if further instructions are needed, will use its best efforts to timely instruct Litigation Counsel and IPR Counsel, to provide Investor with all material work product relating to the Claim and the Funded IPR Proceedings as soon as practicable, regardless of the information’s source, confidentiality or form, unless to do so would be a breach of an obligation to a third party or an order of a court or other governmental authority, or Investor already possesses or controls such information, or unless Plaintiff in good faith and in consultation with Litigation Counsel or IPR Counsel, as applicable, concludes that such disclosure would create a substantial risk of waiver of the protections of the work product doctrine; provided, however, that in the event any Party has any concerns that the disclosure of any work product will in any way prejudice the outcome of the Litigation, the Claim, or the Funded IPR Proceedings, such Party shall consult in good faith with the other Party. 
		

		
			
		

		
			

		 

		

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			(c)     Attorney–Client Privileged Information. Relying on the Parties’ recognition and agreement that they share a common legal interest and that communicating attorney-client privileged information to Investor in the furtherance of that interest does not waive the attorney-client privilege, Plaintiff may undertake to share such information on a topic-by-topic basis, but only if (i) Plaintiff has discussed with Litigation Counsel, IPR Counsel, and/or legal counsel of Plaintiff’s choosing the information to be shared, the reason for sharing it and the likely consequences if the sharing is ultimately held to waive the privilege; (ii) Plaintiff has given written consent to such information sharing; and (iii) Investor is advised of the nature of the privileged information in sufficient detail that Investor can make its own risk assessment in determining whether to accept receipt of such privileged information and then accepts receipt of such information.  For avoidance of doubt, even if Plaintiff determines to provide such information to Investor, Investor may decline to accept receipt of such information.  
		

		
			3.1.5    No Change in Litigation Counsel or IPR Counsel Without Investor Notice. Plaintiff agrees and undertakes that it will not seek to replace Litigation Counsel or IPR Counsel without thirty days’ prior written notice to Investor and without giving good faith consideration to Investor’s response, if any; provided, that, if Plaintiff proceeds to retain a replacement law firm or any supplemental counsel over Investor’s objections, Investor shall have the right to immediately cease funding hereunder and terminate this Agreement in accordance with Sections 9 and 11.  In addition, Plaintiff agrees not to remove Mintz Levin as Litigation Counsel for the purposes of avoiding making the payments otherwise due to Mintz Levin under the Litigation Counsel Fee Agreement.
		

		
			3.1.6    Investor Consultation Rights Regarding Settlement.
		

		
			(a)     Plaintiff will immediately notify Investor upon receiving a settlement offer, informing Investor of the complete details of the offer.  Plaintiff will consult with Investor regarding the settlement offer before responding thereto, provided, that, Investor communicates its views within three Business Days of receiving notice of the offer, and, provided, further, that Plaintiff shall have no obligation to follow Investor’s advice.
		

		
			(b)     Plaintiff will consult with Investor before making any settlement offer.  Investor shall communicate its views concerning such potential settlement offer within three Business Days of Plaintiff’s request for consultation, but Plaintiff shall have no obligation to follow Investor’s advice.
		

		
			3.1.7    Good Faith Dealings. Plaintiff agrees it will act reasonably and in good faith toward Investor in every action Plaintiff takes in relation to the Claim and Plaintiff’s performance under this Agreement.  Plaintiff shall not consent to any request by SVIC to sell, transfer, assign or hypothecate the Note or any of its rights under the Transaction Documents (as each of those terms is defined in the Note Agreement) to any party that is not an Affiliate of SVIC without the prior written approval of Investor.  If the Conclusion of the Claim has not occurred on or before April 1, 2018, then, at Investor’s request, Plaintiff will amend the Investment Documents to provide Investor with any additional reasonable protections proposed by Investor to protect Investor’s ability to realize on its investment.
		

		
			
		

		
			

		 

		

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			3.1.8    Compliance with the Investment Facility Documents.  Until the Termination Date, Plaintiff shall comply with the Investment Facility Documents, including the reporting requirements and payment of the Obligations as set forth therein.
		

		
			3.1.9    Required Actions.  Until the Termination Date, promptly after Investor’s request to do so, Plaintiff shall deliver such instruments and agreements, and take such actions, to create, evidence or perfect Investor’s Liens on any Collateral, or otherwise necessary to give effect to the terms of this Agreement.
		

		
			3.1.10  Compliance with Laws.  Plaintiff shall comply with all Applicable Laws.
		

		
			3.1.11  Existence.  Plaintiff shall maintain and preserve its existence.
		

		
			3.1.12  Books and Records.  Plaintiff shall keep and maintain books and records currently in its possession or control and essential to the prosecution of the Litigation and defense of the Funded IPR Proceedings.
		

		
			3.1.13  Payment of Taxes.  Plaintiff shall pay and discharge all taxes due and owing by Plaintiff on a timely basis prior to the date on which any penalties may attach thereto.
		

		
			3.1.14  Permitted Liens.  Plaintiff shall not create or suffer to exist any Lien upon any of the Collateral, including the Recoveries, the Claim, the Litigation, or the Proceeds Account, except Permitted Liens.
		

		
			3.1.15  Distributions to Creditors.  Plaintiff shall not declare or make any distribution (a) from the Recoveries until such time as Investor has been paid therefrom pursuant to the terms of this Agreement, or (b) from any other asset of Plaintiff that is subject to Liens in favor of Investor if at the time of any such proposed distribution any Obligations under this Agreement are outstanding.
		

		
			3.1.16  Fundamental Changes.  Plaintiff shall not change its name or conduct business under any fictitious name; change its tax, charter or other organizational identification number (except to the extent required by Applicable Law, in which case such information shall be provided to Investor prior to the making of such change); change its form or state of organization; wind-up, liquidate or dissolve, or merge, combine, consolidate or amalgamate with any Person, in each case, whether in a single transaction or in a series of related transactions.
		

		
			3.2.      Waiver.  Upon written request of Plaintiff, Investor may waive, in writing, compliance with any covenant described in Section 3.1.
		

		
			3.3.      Covenants of Investor.
		

		
			3.3.1    No Waiver of Privilege. Notwithstanding any other provision of this Agreement, Investor shall not disclose any Common Interest Material to any third party without the prior written consent of Plaintiff.  For the avoidance of doubt, this prohibition prevents disclosure without Plaintiff’s prior written consent to Investor’s investors.  If consent is given, Investor shall enter into an agreement with such secondary recipients to preserve the confidentiality of the Common Interest Material on terms no less restrictive than those set forth in 
		

		
			
		

		
			

		 

		

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			this Agreement for Confidential Information.  This provision shall survive the termination of this Agreement.
		

		
			3.3.2    Good Faith Dealings. Investor agrees it will act reasonably and in good faith toward Plaintiff in every action Investor takes in relation to the Claim and Investor’s performance under this Agreement.  For the avoidance of doubt, and without limiting the foregoing, pressuring Plaintiff to negotiate or accept a settlement that Plaintiff believes is not in its best interests shall violate this covenant.  Notwithstanding the previous sentence, Investor’s exercise of its right to provide input to litigation and settlement strategy and its right to terminate funding for cause pursuant to Sections 9 and 12 shall not constitute breach of this covenant. 
		

		
			3.3.3    Settlement and Cooperation Investor will cooperate with Plaintiff, Litigation Counsel and IPR Counsel to the extent reasonably requested by Plaintiff.  Investor agrees that, upon request of Plaintiff, it will make itself reasonably available to assist with settlement strategy related to any mediation proceeding or otherwise, provided that Investor further agrees it will not directly or indirectly impede or interfere with the orderly progress of any such mediation or settlement discussions.  
		

		
			3.3.4    No Present Interest in Patents.  Subject to Section 9.1(g) hereof and the terms of the Security Agreement, nothing in this Agreement provides or is intended to provide Investor with a right or opportunity to control or to make binding or final decisions of any kind regarding the licensing, enforcement, or resolution of Plaintiff’s Claim and Patents, including Plaintiff’s sole settlement authority, and Investor hereby disclaims and waives all such rights.
		

		
			SECTION 4.   COMMON INTEREST AND CONFIDENTIAL INFORMATION.
		

		
			4.1.       Common Interest. The Parties agree that they share a common legal interest and, to the degree necessary to further their common legal interest, agree to share Common Interest Material in accordance with the provisions of Sections 2.1.1 and 4.1.  Plaintiff and Investor agree that Plaintiff would not share such material with Investor in the absence of their common legal interest in the successful prosecution of the Claim.  No waiver of the attorney-client privilege, work product doctrine or any other privilege or immunity from compelled disclosure is or shall be implied by the exchange or disclosure of any information or documents in connection with this Agreement.  Neither an inadvertent disclosure nor a purposeful disclosure pursuant to this Agreement or in connection with the transactions contemplated hereby shall constitute a waiver of any privilege or protection of any Party.
		

		
			4.2.       Non-Disclosure Generally. The recipient of Confidential Information shall not disclose, use or make available, directly or indirectly, any Confidential Information to anyone, except as needed to perform its obligations under this Agreement or as the disclosing Party otherwise authorizes in writing.  When disclosing, using or making Confidential Information available in connection with the performance of its obligations under this Agreement or as permitted by the other Party hereto, the disclosing Party shall cause the recipient of such Confidential Information to enter into an agreement with the disclosing Party to preserve the confidentiality of the Confidential Information on terms no less restrictive than as set forth in this Agreement.  The recipient agrees that neither the execution of this Agreement nor the provision of Confidential Information hereto enables the recipient to use the Confidential Information for any 
		

		
			
		

		
			

		 

		

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			purpose or in any way other than as specified in this Agreement; provided, however, that (a) Investor may disclose Confidential Information (including a copy of this Agreement), other than information protected as work product or attorney-client privileged, to Investor’s investors and (b) any Party may disclose Confidential Information, other than information protected as work product or attorney-client privileged, to the Party’s accountants and auditors to the minimum extent necessary to the performance of their duties. 
		

		
			4.3.       Potentially Enforceable Disclosure Requests.  In the event that any Party (the “Disclosing Party”) is requested or required by a governmental authority or otherwise pursuant to other legal process to disclose any Confidential Information, such Disclosing Party shall, to the extent permitted by applicable law, give the other Party prompt written notice of such request or requirement so that the other Party may seek an appropriate order or other remedy protecting the Confidential Information from disclosure, and the Disclosing Party will cooperate with the other Party to obtain such protective order or other remedy.  If such notice to the other Party is not permitted by applicable law, the Disclosing Party shall use good faith efforts to contest such disclosure.  In the event that a protective order or other remedy is not obtained or the other Party waives its right to seek such an order or other remedy, the Disclosing Party may, without liability under this Agreement, furnish only that portion of the Confidential Information that, in the written opinion of the Disclosing Party’s counsel, the Disclosing Party is legally required to disclose; provided, that, to the extent permitted under applicable law, such Disclosing Party shall give written notice of the Confidential Information to be disclosed as far in advance of its disclosure as practicable and use its best efforts to obtain assurances that confidential treatment will be accorded to such Confidential Information.
		

		
			SECTION 5.   RETENTION OF COUNSEL.
		

		
			5.1.       Retention of Litigation Counsel and IPR Counsel. Subject to the terms of this Agreement, Investor and Plaintiff acknowledge and agree that Plaintiff is free to select counsel of its choosing in the Litigation and the Funded IPR Proceedings.  Investor acknowledges and accepts that Plaintiff has retained Mintz Levin in connection with the Litigation, and Investor enters into this Agreement in reliance on that selection of counsel (among other things) pursuant to the terms set forth in the Litigation Counsel Fee Agreement.  In the event Plaintiff seeks to replace Litigation Counsel and/or IPR Counsel, Investor shall have the right to (a) approve in advance any new counsel retained to replace Litigation Counsel and/or IPR Counsel and (b) participate in the negotiation of fee arrangements with such other counsel.  Investor also shall have the right to approve and negotiate fee arrangements with vendors and other service providers to be retained in connection with the Litigation, the Funded IPR Proceedings and the Claim. 
		

		
			5.2.       Litigation Counsel. Plaintiff has instructed Litigation Counsel to remit all invoices in connection with the Litigation and the Claims directly to Investor.  Litigation Counsel shall submit all of its invoices directly to Investor by email addressed to Billing@trgpcap.com.  Notwithstanding that Investor will be responsible for payment of Litigation Counsel’s fees and expenses as and to the extent set forth herein, the Parties understand and agree that Litigation Counsel’s exclusive duties shall be owed to Plaintiff and not to Investor. 
		

		
			5.3.       IPR Counsel. Plaintiff has instructed IPR Counsel to remit all invoices in connection with the Funded IPR Proceedings directly to Plaintiff and not to Investor.  Investor 
		

		
			
		

		
			

		 

		

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			shall pay IPR Counsel’s fees and expenses as and to the extent set forth in this Agreement within 45 days of the date of Investor’s receipt of IPR Counsel’s invoice from Plaintiff.  Plaintiff agrees to submit all such invoices to Investor by email addressed to Billing@trgpcap.com.  Notwithstanding that Investor will be responsible for payment of IPR Counsel’s fees and expenses as and to the extent set forth herein, the Parties understand and agree that IPR Counsel’s exclusive duties shall be owed to Plaintiff and not to Investor.
		

		
			5.4.       Compensation of Litigation Counsel. Plaintiff and Mintz Levin are party to an engagement letter, dated as of the Effective Date, regarding Mintz Levin’s retention as Litigation Counsel (the “Litigation Counsel Fee Agreement”), a copy of which is attached hereto as Exhibit C.  The Litigation Counsel Fee Agreement amends a prior engagement letter entered into between Plaintiff and Mintz Levin, dated December 8, 2016.  Investor acknowledges that it has reviewed and understands, and further consents and agrees to, the terms of the Litigation Counsel Fee Agreement. 
		

		
			5.5.       Compensation of IPR Counsel. Each IPR Counsel has agreed, as set forth in the correspondence attached hereto as Exhibit D, that it will comply with (a) the provisions that relate to IPR Counsel herein, including without limitation, the provisions set forth in Exhibit E, and (b) the Investor Billing Guidelines, a copy of which Plaintiff has provided to IPR Counsel. 
		

		
			5.6.       Removal of Litigation Counsel. In the event Plaintiff removes Litigation Counsel, (a) Investor shall pay to Mintz Levin (or whomever is the approved Litigation Counsel at that time) the amounts owed to Litigation Counsel as of the date of such termination solely in accordance with the terms of the Litigation Counsel Fee Agreement; and (b) Plaintiff shall pay any additional amounts deemed to be due to Litigation Counsel under the Litigation Counsel Fee Agreement, on the basis of quantum meruit or otherwise.  
		

		
			5.7.       Removal of IPR Counsel. In the event Plaintiff removes IPR Counsel, Investor shall pay to Morrison & Foerster LLP and McAndrews Held and Malloy Ltd. (or whomever is the approved IPR Counsel at that time) the amounts owed to IPR Counsel as of the date of such termination solely in accordance with the terms of the IPR Counsel Fee Agreement and the provisions of this Agreement, including Section 5.3.  
		

		
			SECTION 6.  FUNDING TERMS.
		

		
			6.1.      Initial Investments.  Subject to all terms and conditions set forth in this Agreement, Investor agrees to pay (a) all Litigation Costs submitted by Plaintiff or Litigation Counsel to Investor incurred between January 1, 2017 and the Initial Funding Date and (b) all IPR Costs up to the IPR Fee Cap submitted by Plaintiff to Investor incurred between January 1, 2017 and the Initial Funding Date in accordance with this Agreement pursuant to the procedures set forth on Exhibit E (the “Payment Procedures”).
		

		
			6.2.      Post-Closing Investments.  Subject to all of the terms and conditions set forth herein, Investor agrees to pay all Litigation Costs and IPR Costs up to the IPR Fee Cap submitted by Plaintiff to Investor incurred between the Initial Funding Date until the Termination Date in accordance with the Payment Procedures, provided, that, Investor shall not have any obligation to make an Investment more frequently than monthly. 
		

		
			
		

		
			

		 

		

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			6.3.      Counsel Fees.  From and after the Effective Date, Investor, and not Plaintiff, shall be responsible for making, on behalf of Plaintiff, all payments due to Litigation Counsel under the Litigation Counsel Fee Agreement and all payments due to IPR Counsel, up to the IPR Fee Cap, under the IPR Counsel Fee Agreement, and such other Litigation Costs and IPR Costs within the scope of this Agreement, including without limitation Sections 5.6 and 5.5.
		

		
			6.4.      Review and Approval of Fee Arrangements.  
		

		
			6.4.1    Investor Review and Approval.  Investor shall have the right to approve in advance all financial arrangements, including staffing, rates and fee discounts, for all law firms, experts, consultants, vendors and other service providers that Plaintiff, Litigation Counsel and/or IPR Counsel seeks to retain or employ in connection with the Claim and the Funded IPR Proceedings, which approval shall not be unreasonably withheld or delayed.  Plaintiff or, as applicable, Litigation Counsel or IPR Counsel, shall instruct Litigation Counsel, IPR Counsel, vendors and other service providers to provide Investor (directly or, as appropriate, through Litigation Counsel or IPR Counsel, as applicable) with quarterly budgets relating to anticipated fees and expenses (including, in the case of Litigation Counsel, the anticipated expenses for experts and consultants); provide advance notice to Investor of expenditures to the extent practicable; give Investor the opportunity to participate in the selection of vendors and other service providers and to participate in the negotiation of pricing with experts, vendors and other service providers unless otherwise agreed; and submit all bills to Investor for review and approval.  Plaintiff, Litigation Counsel and IPR Counsel in all events shall endeavor to retain and use experts, consultants and vendors in the most cost-effective means possible in view of the demands of the Claim and the Funded IPR Proceedings.
		

		
			6.5.      Recoveries.  
		

		
			6.5.1    Resolution with Defendant.  Upon receipt by Plaintiff of (A) Recoveries payable to Plaintiff in the form of cash or cash equivalents, or (B) cash or cash equivalents from any Reference Entity that acquires a controlling interest in Plaintiff (in either case, a “Cash Recovery”), then such Cash Recovery shall be paid directly into the Proceeds Account and distributed as follows: 
		

		
			(a)     First, upon a Cash Recovery at any time, to Investor in an amount equal to 1.0 times its Investment; then 
		

		
			(b)     Second, upon a Cash Recovery at any time, to Litigation Counsel in an amount equal to the True-Up Payment (as defined in the Litigation Counsel Fee Agreement); then
		

		
			(c)     Third, (i) upon a Cash Recovery on or before [*****], to Investor in an amount equal to [*****] times its Investment, in which case Investor shall be entitled to no further compensation; or (ii) upon a Cash Recovery after [*****], an amount equal to [*****] times its Investment plus an additional [*****] times its Investment added on the first day of the calendar quarter commencing on [*****] and each calendar quarter thereafter (e.g., a [*****] multiple as of [*****], a [*****] multiple as of [*****], a [*****] multiple as of [*****], etc.); provided,  however,  
		

		
			 
		

		
			

		 

		

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			Confidential Treatment Requested.  Omitted portions are marked with [*****] and
have been filed separately with the Securities and Exchange Commission.

		

		

		
			that in no event shall Investor be entitled to an aggregate distribution equal to more than [*****] times its Investment; then 
		

		
			(d)     Fourth, to Litigation Counsel in an amount equal to the Fee Premium (as defined in the Litigation Counsel Fee Agreement); then
		

		
			(e)     Fifth, as to all remaining Recoveries, to Plaintiff.  
		

		
			6.5.2    Recoveries in Forms Other Than Cash.  In the event there are Recoveries payable to Plaintiff in a form other than Cash Recoveries, and Investor has not been indefeasibly paid in full the Obligations owed to it pursuant to Section 6.5.1, then the Parties (including any successor to Plaintiff) shall negotiate in good faith to determine the fair market value of such Recoveries in any form, including (a) an acquisition of the Patents by any Person, (b) a merger or other corporate transaction between Plaintiff and any Person, (c) securities, (d) cash payments to be made in installments or (e) payments in the form of other property other than cash or cash equivalents, shall be determined by generally recognized accounting and appraisal standards.  Plaintiff shall promptly provide to Investor all documents reflecting the financial terms of (i) an acquisition of the Patents by any Person, (ii) a merger or other corporate transaction between Plaintiff and any Person, (iii) securities, (iv) cash payments to be made in installments, or (v) payments in the form of other property not entirely cash or cash equivalents.  If the Parties (including any successor to Plaintiff) are unable to agree on the fair market value of such Recoveries, then the fair market value shall be determined in accordance with the dispute resolution procedures set forth in Section 14 of this Agreement.  All Recoveries in a form other than Cash Recoveries shall be made directly to Investor, which shall hold such Recoveries in trust for the Parties pending a determination of their fair market value pursuant to this Section 6.5.2.  After a determination has been made of the fair market value of such Recoveries, then such Recoveries shall be promptly distributed pursuant to Section 6.5.1.
		

		
			6.5.3    Transaction Prior to Conclusion of Claim. If, prior to the Conclusion of the Claim, Plaintiff sells or assigns (including by way of foreclosure of the Patents) any interest in the Patents or the Claim to any Person, or enters into a transaction with any Person that results in a Change of Control or in any way impairs the value of the Patents or the Claim, then Investor shall be entitled to the maximum payment that could be due to it under Section 6.5.1(c) (i.e., [*****] the amount of its Investment as of the date of the closing of the Change of Control), which payment shall be indefeasibly paid to Investor in cash within five Business Days after such closing.  Without limiting the generality of the foregoing, and solely by means of example, if Defendant or SVIC were to purchase 25% or more on a fully diluted basis of the voting and/or economic interests in the equity securities of Plaintiff, thus resulting in a Change of Control, then Investor shall be entitled to receive [*****] times its Investment, which payment shall be indefeasibly paid to Investor in cash within five Business Days after the effective date of such Change of Control.
		

		
			6.5.4    Conditions to Change of Control or Impairment of Claim. Plaintiff shall not enter into any transaction with any Person that would result in a Change of Control of Plaintiff or in any way impair the value of the Patents or the Litigation unless, as a condition of such transaction,: (a) Plaintiff’s counterparty or Plaintiff makes the payment to Investor required under Section 6.5.3 within five Business Days after the effective date of such Change of Control, and (b) 
		

		
			
		

		
			

		 

		

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			Confidential Treatment Requested.  Omitted portions are marked with [*****] and
have been filed separately with the Securities and Exchange Commission.

		

		

		
			Plaintiff’s counterparty assumes the Plaintiff’s rights and obligations under the Investment Documents (with the prior written consent of the Investor) and agrees to (i) continue to pursue the Claims pursuant to the terms of the Investment Documents, and (ii) make all payments at any time required to be made to Investor under Section 6.5.1 of this Agreement.
		

		
			6.5.5    No Commitment for Additional Investment.  Plaintiff acknowledges and agrees that Investor has not made any representation, undertaking, commitment or agreement to provide or assist Plaintiff in obtaining any financing, investment or other assistance, other than the Investments set forth herein.  In addition, Plaintiff acknowledges and agrees that (a) no statements, whether written or oral, made by Investor on or after the Effective Date shall create an obligation, commitment or agreement to provide or assist Plaintiff in obtaining any financing or investment; (b) Plaintiff shall not rely on any such statement by Investor; and (c) an obligation, commitment or agreement to provide or assist Plaintiff in obtaining any financing or investment may only be created by a written agreement, signed by Investor and Plaintiff, setting forth the terms and conditions of such financing or investment and stating that the Parties intend for such writing to be a binding obligation or agreement. 
		

		
			SECTION 7.  CONDITIONS PRECEDENT.
		

		
			7.1.      Conditions Precedent to Initial Investments. Investor shall not be required to make the requested initial Investment to Plaintiff pursuant to Section 6 until the date that each of the following conditions precedent has been (a) satisfied or (b) waived by Investor in its sole discretion (the “Initial Funding Date”):
		

		
			7.1.1    Due Execution.  Each Investment Facility Document has been duly executed and delivered to Investor by each of the signatories thereto, and Plaintiff shall be in compliance with all terms thereof.
		

		
			7.1.2    No Dispositive Ruling.  No dispositive ruling that is adverse to Plaintiff has been entered on the merits in the Litigation or the Funded IPR Proceedings.
		

		
			7.1.3    Request.  An Investment Request has been delivered on a timely basis to Investor in respect of the requested Initial Investment.
		

		
			7.2.      Conditions Precedent to All Investments.  In addition to the conditions set forth in Section 7.1, Investor shall not be required to fund any Investment to Plaintiff pursuant to Section 6 until the date that each of the additional conditions precedent are satisfied or waived by Investor (each, a “Subsequent Funding Date”):
		

		
			7.2.1    No Default.  No Event of Default or Investor Termination Event exists at the time of, or would result from, such funding, issuance or grant.
		

		
			7.2.2    Representations and Warranties True and Correct.  The representations and warranties of Plaintiff in the Investment Facility Documents are true and correct on and as of such date as though made on and as of the date of such Investment Request and on and as of the date for the making of such proposed Investment (except for representations and warranties that expressly relate to an earlier date, in which case such representations and warranties shall be true and correct on and as of such earlier date).
		

		
			 
		

		
			

		 

		

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			7.2.3    No Contravention.  The making of the Investment shall not contravene any law, rule, or regulation.
		

		
			7.2.4    Request.  An Investment Request has been delivered on a timely basis to Investor in respect of the requested Investments.
		

		
			SECTION 8.  SECURITY.
		

		
			8.1.      Security Agreement.  Plaintiff shall at all times provide Investor with sufficient security over the Collateral, in form and substance satisfactory to Investor, pursuant to a security agreement, dated as of the Effective Date, between Plaintiff, as grantor, and Investor, as secured party, in substantially the form of Exhibit F hereto (as the same may be amended, restated or modified after the date hereof in accordance with its terms, the “Security Agreement”).
		

		
			8.2.      Condition to Investment.  The provision of security to comply with Section 8.1 is both a condition precedent and a continuing obligation on the part of Plaintiff and a condition of Investor’s continued performance and is accordingly a condition of this Agreement, any breach of which shall entitle Investor to terminate this Agreement pursuant to Sections 9 and 12.  
		

		
			8.3.      Plaintiff Assistance in Perfection of Security.  Plaintiff shall take all steps, and provide such assistance as Investor may reasonably request, for the purpose of perfecting Investor’s security interests in the Collateral, including the making of any filings or notifications necessary or desirable in connection therewith.
		

		
			8.4.      Insolvency Proceeding.  All Obligations of Plaintiff under the Investment Facility Documents are intended to survive an Insolvency Proceeding of Plaintiff.
		

		
			SECTION 9.  TERMINATION BY INVESTOR.
		

		
			9.1.      Investor Termination Events.  Each of the following shall be an “Investor Termination Event” if it occurs for any reason whatsoever, whether voluntary or involuntary, by operation of law or otherwise:
		

		
			(a)     Plaintiff fails to remit the Recoveries to Investor as and when required hereunder;
		

		
			(b)     Plaintiff fails to take any steps with reasonable promptness (and in any event within fifteen days upon actual receipt of request from Investor) that are reasonably requested by Investor to create or perfect any security interest of Investor on any Collateral;
		

		
			(c)     any representation or warranty made by Plaintiff in this Agreement, any other Investment Facility Document or any certificate or other writing shall have been false in any material respect when made;
		

		
			(d)     any Material Adverse Change;
		

		
			(e)     Plaintiff becomes subject to an Insolvency Proceeding not dismissed within 10 days; 
		

		
			
		

		
			

		 

		

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			(f)     Plaintiff fails to perform or comply with any covenant or agreement contained in Sections 2.1.2 (Full Disclosure), 2.1.3 (No Impairment), 2.1.4 (Right to Bring the Litigation), 2.1.5 (Completeness and Accuracy), 3.1.2 (Duty to Cooperate), 3.1.4 (Duty to Inform), 3.1.5 (No Change in Litigation Counsel or IPR Counsel Without Investor Notice), 3.1.6 (Consultation Rights Regarding Settlement), 3.1.7 (Good Faith Dealings) and 13.1 (Proceeds Account);
		

		
			(g)     Plaintiff fails to perform or comply with any covenant or agreement contained in Sections 2 and 3 (other than those listed in Section 9.1(f) of this Agreement) or in any other Section of this Agreement or in any other Investment Facility Document and such failure, if capable of being remedied, shall remain unremedied for fifteen days after the earlier of the date on which Plaintiff obtains actual knowledge of such failure or the date written notice of such failure is given by Investor to Plaintiff; 
		

		
			(h)     an Event of Default under the Security Agreement;
		

		
			(i)      any material provision of any Investment Facility Document ceases at any time and for any reason (other than pursuant to the express terms thereof) to be valid and binding on or enforceable against Plaintiff, or the validity or enforceability thereof is contested by Plaintiff, or a proceeding is commenced by Plaintiff or any Governmental Authority having jurisdiction over Plaintiff, seeking to establish the invalidity or unenforceability thereof, or Plaintiff denies in writing that it has any liability or obligation created under any Investment Facility Document to Investor; 
		

		
			(j)      any Lien or security interest granted to Investor under the Investment Facility Documents ceases for any reason (other than as a direct result of Investor’s termination of, or failure to continue, its UCC-1 financing statement) to be a valid, perfected or first priority security interest;
		

		
			(k)     any event or condition shall occur which results in the acceleration of the maturity of any Debt (other than under the Investment Documents) of the Borrower which Debt or Debts in the aggregate are at least $1,000,000; or
		

		
			(l)      the occurrence of a Change of Control.
		

		
			9.2.      Investor Termination Event Procedure.  Investor may terminate this Agreement upon delivery of written notice to Plaintiff in accordance with Section 18.14 of this Agreement at any time after the occurrence of, and during the continuation of, any of an “Investor Termination Event”).
		

		
			9.3.      Waivers.  No waiver or course of dealing shall be established by (a) the failure or delay of Investor to require strict performance by Plaintiff with any terms of the Investment Facility Documents, or to exercise any rights or remedies with respect to Collateral or otherwise; (b) the making of an Investment during a Default (as defined in the Security Agreement), Investor Termination Event or other failure to satisfy any conditions precedent; or (c) acceptance by Investor of any payment or performance by Plaintiff under any Investment Facility Documents in a manner other than that specified therein.
		

		
			
		

		
			

		 

		

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			9.4.      Failure to Disclose Information Related to Claim.  
		

		
			9.4.1    Non-Material Disclosures.  Notwithstanding Section 9.1(f), failure to disclose material information about a Claim will not constitute a breach of Section 3.1.4 (Duty to Inform) if such information (a) supports or strengthens the Litigation, or (b) was not known by Plaintiff on the Effective Date, and at the time after the Effective Date it becomes known by Plaintiff, such information would not have effected Investor’s decision to invest in the Litigation had such information been known and disclosed by Plaintiff to Investor prior to the Effective Date.  
		

		
			9.4.2    Procedure to Adjudicate Disclosure.  If Investor disputes any assertion by Plaintiff made pursuant to Section 9.4.1 that a failure by Plaintiff to disclose information required by Section 3.1.4 does not constitute a material breach of the Agreement, then the Parties shall submit such dispute to private, confidential arbitration pursuant to JAMS’ Streamlined Arbitration Rules and Procedures in accordance with Section 14.
		

		
			9.5.      No Control of Litigation or Funded IPR Proceedings. Notwithstanding the occurrence of an Investor Termination Event or the enforcement of remedies in consequence thereof, in connection with their enforcement of Liens upon the Collateral, Investor will not be authorized to become the owner of (by strict foreclosure or otherwise), or to sell or otherwise transfer (by public sale or otherwise) any right, title or interest in, any civil action, contested matter or other Litigation that is an asset of Plaintiff’s, or to control the prosecution or settlement of any such civil action, contested matter or other Litigation unless and until abandoned in writing by Plaintiff.
		

		
			9.6.      Retention of Documents.  Notwithstanding anything to the contrary herein, following termination, Investor shall be entitled, in order to protect its own interest in relation to this Agreement, to keep copies of the documentation relating to the Litigation, the Claim, and the Funded IPR Proceedings, including Confidential Information provided to it by Plaintiff, Litigation Counsel or by IPR Counsel pursuant to instructions given to Litigation Counsel or IPR Counsel by Plaintiff hereunder, provided, that it adheres to the confidentiality requirements set forth in Section 4.
		

		
			9.7.      Survival. Notwithstanding the foregoing, the following Sections of this Agreement shall survive any termination of this Agreement and shall remain in full force and effect: Section 2.3.3(Conflicts of Interest), Section 2.3.4 (No Waiver of Privilege), Section 3.1.4 (Duty to Inform), Section 3.1.6 (Consultation Rights Regarding Settlement), Section 4 (Common Interest and Confidential Information), and Section 14 (Dispute Resolution).
		

		
			SECTION 10.     TERMINATION BY PLAINTIFF.
		

		
			10.1.    Plaintiff Termination Events.  Each of the following shall be a “Plaintiff Termination Event” if it occurs for any reason whatsoever, whether voluntary or involuntary, by operation of law or otherwise:
		

		
			(a)     any representation or warranty made by Investor in this Agreement, any other Investment Facility Document or any certificate or other writing shall have been false in any material respect when made; or
		

		
			
		

		
			

		 

		

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			(b)     Investor fails to fund any Cost pursuant to the terms of this Agreement and the Payment Procedures, and such failure shall remain unremedied for forty-five days after the earlier of the date on which Plaintiff obtains actual knowledge of such failure or the date written notice of such failure is given by Plaintiff to Investor.
		

		
			10.2.    Plaintiff Termination Procedure.  Plaintiff may terminate this Agreement upon delivery of written notice to Investor in accordance with Section 18.3 of this Agreement at any time after the occurrence of, and during the continuation of, any of a “Plaintiff Termination Event” (together with the Investor Termination Events, the “Termination Events,” and each, a “Termination Event”).
		

		
			SECTION 11.     MUTUAL TERMINATION EVENT.  
		

		
			11.1.    Mutual Termination.  This Agreement may be terminated by mutual agreement between the Parties.
		

		
			SECTION 12.     TERMINATION.
		

		
			12.1.    Remedies Upon Investor Termination Event.  Upon an Investor Termination Event, Investor may, in its sole discretion, immediately cease further funding under this Agreement; provided, however, that Investor will be responsible to pay all Costs otherwise due under this Agreement to the extent properly incurred as of the date of such Termination Event.  
		

		
			12.2.    Remedies Upon Plaintiff Termination Event.  Upon a Plaintiff Termination Event, Investor nevertheless shall be entitled to receive from, and only from, Recoveries the repayment of amounts it would have been entitled to receive pursuant to Section 6.5 had the Conclusion of the Claim occurred on such date.
		

		
			12.3.    Payments to Investor Upon Termination Event.  Upon a Termination Event, notwithstanding that it ceased funding, Investor shall be entitled to receive from any Recoveries an amount equal to all Recoveries that would have been due to Investor pursuant to Section 6.5 in the absence of such Termination Event.  In the event Investor, in its sole discretion, determines that such amounts are insufficient to compensate it for the consequences of such Termination Event, Investor may seek additional remedies under the provisions of Section 14.  After a Termination Event, Cash Recoveries shall be paid directly into the Proceeds Account, and Recoveries in a form other than cash and cash equivalents shall be made to Investor and distributed pursuant to Section 6.5.2.
		

		
			12.4.    Remedies Cumulative.  All agreements, warranties, guaranties, indemnities and other undertakings of either Party under the Investment Facility Documents are cumulative and not in derogation of each other.  The rights and remedies of either Party are cumulative, may be exercised at any time and from time to time, concurrently or in any order, and are not exclusive of any other rights or remedies available by agreement, by law, at equity or otherwise, including remedies that either Party has under this Agreement pursuant to Section 14.
		

		
			12.5.    Non-Performance.  In no event shall any termination of this Agreement relieve a Party from (a) liability for its breach or non-performance of its obligations under this Agreement prior to the date of such termination, and (b) obligations under this Agreement which by their terms 
		

		
			
		

		
			

		 

		

			27

		

 

		

			 

		

		

		
			expressly survive a Termination Event; provided, however, that, notwithstanding anything to the contrary contained in this Agreement, any Termination Event (including any automatic termination) may be waived in accordance with Section 18.8 of this Agreement, in which case such Termination Event so waived shall be deemed not to have occurred, this Agreement consequently shall be deemed to continue in full force and effect, and the rights and obligations of the Parties shall be restored, subject to any condition of such waiver.
		

		
			SECTION 13.     PROCEEDS ACCOUNT.
		

		
			13.1.    Proceeds Account. Investor shall establish a deposit account in its own name to be known as the “Proceeds Account.”  Only funds expressly required by the terms of the Investment Facility Documents to deposited into the Proceeds Account shall be so deposited, and no other funds shall be commingled in the Proceeds Account.  Plaintiff shall direct that all Cash Recoveries be paid directly into the Proceeds Account.  Investor shall be entitled to make distributions from the Proceeds Account in accordance with Section 6.5 of this Agreement.  Pursuant to the Litigation Counsel Fee Agreement, Plaintiff has instructed and, if further instructions are needed, shall instruct, Litigation Counsel to transfer any Cash Recoveries to the Proceeds Account within one Business Day of the day on which any such Recoveries are received by Litigation Counsel.  If any Cash Recoveries are paid directly to Plaintiff, then Plaintiff shall transfer such Cash Recoveries to the Proceeds Account within one Business Day of Plaintiff’s receipt of such Cash Recoveries.  Plaintiff shall further provide that all such funds shall be held by Litigation Counsel or Plaintiff, as the case may be, in trust for Investor, segregated from other funds of said recipient until transferred to the Proceeds Account.
		

		
			SECTION 14.      DISPUTE RESOLUTION. 
		

		
			14.1.    Procedure.  All disputes, controversies and Claim arising out of or relating to this Agreement shall be resolved by the Parties pursuant to this Section 14.
		

		
			14.1.1    Informal Settlement Meeting. The Parties shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement promptly by negotiation between executives who have authority to settle the controversy and who are at a higher level of management than the persons with direct responsibility for administration of this Agreement. Any Party may give the other Party written notice of a dispute not resolved in the normal course of business.  Within 14 days after delivery of such notice, the receiving Party shall submit a written response.  The notice and response shall include with reasonable particularity (a) a statement of each Party’s position and a summary of arguments supporting that position, and (b) the name and title of the executive who will represent the relevant Party.  Within 28 days after delivery of any such notice, the executives of the Parties shall meet, telephonically or at a mutually acceptable time and place.
		

		
			14.1.2    Confidential.  All offers, promises, conduct and statements, whether oral or written, made in the course of the negotiation by or on behalf of any of the Parties are confidential, privileged and inadmissible for any purpose, including impeachment, in arbitration or other proceeding involving the Parties, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the negotiation. 
		

		
			
		

		
			

		 

		

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			14.1.3    Statute of Limitations.  All applicable statutes of limitation and defenses based on the passage of time shall be tolled while the procedures specified in Section 14 are pending and for 14 days thereafter.  The Parties will take such action, if any, required to effectuate such tolling.
		

		
			14.2.    Arbitration.  At any time after the passage of 45 days after delivery of notice of dispute, any Party may initiate arbitration proceedings.  Any dispute, controversy or claim arising out of or relating to this Agreement, including the formation, interpretation, breach or termination thereof, including whether the claims asserted are arbitrable, will be referred to and finally determined through a private, confidential arbitration in accordance with Rule 12 of the JAMS Streamlined Arbitration Rules.  The place of arbitration will be New York, New York, unless the Parties otherwise agree in writing.  The language to be used in the arbitral proceedings will be English. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  
		

		
			14.2.1    Arbitral Confidentiality.  The parties shall maintain the confidential nature of the arbitration proceeding and the award, except as may be necessary to prepare for or conduct the arbitration hearing on the merits, or except as may be necessary in connection with a court application for a preliminary remedy, a judicial challenge to an award or its enforcement or unless otherwise required by law or judicial decision. 
		

		
			14.2.2    Damages.  The arbitrator shall be entitled to award damages to the prevailing party, including damages for lost profits and interest as allowed under New York law.  
		

		
			14.2.3    Attorneys’ Fees.  The arbitrator shall have discretion to award to the prevailing party, if any, the costs and attorneys’ fees reasonably incurred by the prevailing party in connection with the arbitration.  If the arbitrator determines a party to be the prevailing party under circumstances where the prevailing party won on some but not all of the issues, the arbitrator may award the prevailing party an appropriate percentage of the costs and attorneys’ fees reasonably incurred by the prevailing party in connection with the issue(s) on which the party prevailed in the arbitration.
		

		
			14.2.4    Federal Arbitration Act. The Parties acknowledge that this Agreement evidences a transaction involving interstate commerce.  Notwithstanding the provision in this Agreement with respect to applicable substantive law, any arbitration conducted pursuant to the terms of this Agreement shall be governed by the Federal Arbitration Act (9 U.S.C. Secs. 1-16).
		

		
			SECTION 15.     RIGHT OF FIRST REFUSAL.  
		

		
			15.1.    Further Litigations.  Investor shall have the right of first refusal to provide financing for any other litigation Plaintiff or its Affiliates may bring against any other Person for infringement relating to, arising under, or in connection with the technology that is the subject of this Agreement.
		

		
			SECTION 16.     CONFIDENTIALITY. 
		

		
			16.1.    Information Disclosed Prior to the Effective Date.  The Parties understand that all information relating to the Litigation and/or the Funded IPR Proceedings provided to Investor 
		

		
			
		

		
			

		 

		

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			by Plaintiff prior to the Effective Date has been provided pursuant to the Pre-Effective Date NDA.  The Parties acknowledge and agree that, on the Effective Date, the Parties’ communications shall be subject to the confidentiality provisions set forth hereunder, and the Pre-Effective Date NDA shall terminate and be of no further force and effect; provided, that, the Parties’ confidentiality obligations set forth in the Pre-Effective Date NDA shall survive its termination.
		

		
			16.2.    Information Disclosed From and After the Effective Date.  The Parties agree that all further communications from or on behalf of Plaintiff with Investor concerning any non-public information relating to the Litigation and/or the Funded IPR Proceedings, including information about litigation strategy, settlement strategy, drafts of briefs and otherwise, shall be provided to Investor and maintained by Investor in strict confidence and shall not be used by Investor for any purpose other than in connection with its rights and obligations under this Agreement; provided, however, that, under conditions of confidentiality, Investor may disclose this Agreement to its investors and each Party may disclose the Agreement to its lawyers, accountants and auditors; provided, further, that if the Litigation and/or any Funded IPR Proceeding is settled, the Parties may disclose the fact of the settlement, the settlement amount and such other terms to the extent reasonably necessary and appropriate to implement this Agreement.
		

		
			16.3.    Confidentiality of Investor’s Information. Plaintiff agrees that all information Investor has provided to Plaintiff concerning Investor’s business, including the financial terms Investor offered to Plaintiff at any time, are confidential and proprietary to Investor, and that Investor would suffer irreparable harm if any such information were disclosed without Investor’s express, written permission. Investor shall be entitled to relief, including injunctive and other equitable relief, in the event of a breach of Investor’s confidentiality.  
		

		
			16.4.    Agreement Confidentiality.  
		

		
			16.4.1    Strict Confidence.  The Parties shall maintain in strict confidence the existence and terms of the Investment Facility Documents, and the Parties’ discussions, negotiations, and exchanges of the terms of the Investment Facility Documents, in accordance with the terms of this Agreement; provided, however, that the existence and terms of the Investment Facility Documents may be disclosed: (a) to any affiliates, investors, prospective investors (including lenders and prospective lenders), employees, directors, officers, agents, advisors, counsel, auditors, representatives, officers and outside advisors (collectively, the “Representatives”) of such Party (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such information and agree in writing to keep such information confidential in accordance with this Section 16.4.1), (b) as permitted by Section 16.4.2 of this Agreement, (c) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Representatives (including any self-regulatory authority), (d) to the extent required by applicable laws or regulations, (e) in connection with the exercise of any remedies hereunder or under any other Investment Facility Document or any action or proceeding relating to this Agreement or any other Investment Facility Document or the enforcement of rights hereunder or thereunder, or (f) subject to an agreement containing provisions substantially the same as those of this Section 16.4.1.  Each Party will be responsible for any breach of this Agreement by its Representatives.
		

		
			
		

		
			

		 

		

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			16.4.2    Disclosure to Court.  In the event either Party is required by any court of competent jurisdiction or any competent judicial, governmental, supervisory, or regulatory entity or by subpoena to disclose any of the existence and terms of the Investment Facility Documents or information related thereto, each Party may disclose that portion of the existence and terms of the Investment Facility Documents or information that, in the opinion of such Party’s counsel, such Party is required to disclose.  Each Party agrees to notify the other promptly in the event of a request for such disclosure or receipt of a subpoena requesting such disclosure (unless such notification shall be prohibited by applicable law or legal process) and cooperate with the other Party in any attempt it may make to obtain a protective order or other appropriate assurance prior to such disclosure.
		

		
			SECTION 17.     INDEMNIFICATION.
		

		
			17.1.    Plaintiff Indemnification.  Plaintiff hereby agrees to defend, protect, indemnify and hold harmless Investor and its officers, directors and employees and Investor’s attorneys, consultants and agents engaged at any time in respect of the transactions contemplated by the Investment Facility Documents (collectively, the “Indemnitees”) from and against any and all losses, damages, liabilities, obligations, penalties, fees, reasonable costs and expenses (including reasonable attorneys’ fees, costs and expenses) incurred by such Indemnitees, from and after the Effective Date as a result of any claim, litigation, investigation or proceeding relating to the transactions contemplated by the Investment Facility Documents, whether or not any Indemnitee is a party thereto (collectively, the “Indemnified Matters”); provided, however, that Plaintiff shall not have any obligation to any Indemnitee under this Section for any Indemnified Matters (i) caused by the gross negligence or willful misconduct of such Indemnitee, as determined by a Final Order, or (ii) that relates to or arises out of any action, suit or other proceeding instituted by Plaintiff against Investor to enforce any Investment Facility Documents.
		

		
			17.2.    Limitation of Liability for Certain Damages.  No Party shall assert, and each Party hereby waives, any claim against the other Party and its officers, directors and employees and such Party’s attorneys, consultants and agents engaged at any time in respect of the transactions contemplated by this Agreement, for Special Damages (as defined below), as opposed to general or direct damages (on any theory of liability and whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement), that arises out of, in connection with, as a result of, or in any way related to, any Investment Facility Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, or any act or omission or event occurring in connection therewith, and each party hereby waives, releases and agrees not to sue upon any such claim for such Special Damages or seek to recover any such Special Damages, whether or not accrued and whether or not known or suspected to exist in its favor.  As used herein, the term “Special Damages” means any special, indirect, consequential or punitive damages.
		

		
			SECTION 18.     MISCELLANEOUS.
		

		
			18.1.    Governing Law. This agreement shall be governed by the law of the State of New York, exclusive of that jurisdiction’s conflicts of law principles.
		

		
			
		

		
			

		 

		

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			18.2.    Jury Trial Waiver. To the fullest extent permitted by Applicable Law, each of the Parties waives the right to trial by jury in any proceeding or dispute of any kind relating in any way to any Investment Facility Documents, Obligations or Collateral, and each Party acknowledges that the foregoing waiver is a material inducement to the other Party to enter into this Agreement.  Each Party has reviewed the foregoing waiver with its legal counsel and has knowingly and voluntarily waived its jury trial right following consultation with legal counsel.  In the event of litigation, this Agreement may be filed as a written consent to a trial by the court.
		

		
			18.3.    Entire Agreement. This Agreement sets forth the entire agreement between and among the Parties and fully supersedes any and all prior agreements and understandings, written or oral, between the Parties pertaining to the subject matter hereof. Except as explicitly set forth in this Agreement or any other agreement contemplated herein, there are no representations, warranties, promises or inducements, whether oral, written, expressed or implied, that in any way affect or condition the validity of this Agreement or alter or supplement its terms. Any statements, promises or inducements, whether made by any Party or the agent of any Party, that are not contained in this Agreement shall not be valid or binding. This Agreement shall have perpetual existence, except as otherwise provided herein.  
		

		
			18.4.    Informed Consent and Knowledge. The Parties expressly warrant and represent that (a) they have had the benefit of the professional advice of attorneys of their own choosing, (b) they have fully considered in consultation with such counsel the terms of the Investment Facility Documents, including those related to attorney-client privilege and work product issues and (c) they are fully satisfied with such advice and have decided to enter into the Investment Facility Documents.  The Parties also represent and acknowledge that, in executing the Investment Facility Documents, they do not rely and have not relied on any representation or statement made by the other Party or any of its agents, representatives or attorneys with regard to the subject matter, basis or effect of the Investment Facility Documents or otherwise, other than as specifically stated in this Agreement.
		

		
			18.5.    Expenses of the Parties.  Each Party shall bear its own expenses incurred in the negotiation and execution of this Agreement.
		

		
			18.6.    Cooperation. Each Party agrees to take such steps and to execute any documents as may be reasonably necessary or proper to effectuate the purpose and intent of this Agreement and to preserve its validity and enforceability.  In the event that any action or proceeding of any type whatsoever is commenced or prosecuted by any person not a Party hereto to invalidate, interpret or prevent the validation, enforcement or carrying out of all or any of the provisions of this Agreement, the Parties mutually agree, represent, warrant and covenant to cooperate in opposing such action or proceeding.
		

		
			18.7.    Waiver and Amendment.  No provision of or rights under this Agreement may be waived or modified unless in writing and signed by the Party whose rights are thereby waived or modified.  Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein (whether similar or not), nor shall such waiver constitute a continuing waiver unless otherwise expressly so provided.  This Agreement may not be amended except through an instrument in writing signed by the Parties hereto.
		

		
			
		

		
			

		 

		

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			18.8.    Construction.  The Investment Facility Documents are the jointly drafted product of good faith arms’-length negotiations between the Parties with the benefit of advice from their own respective legal counsel and each of them has had sufficient opportunities to propose and negotiate changes to each Investment Facility Document prior to its execution.  As such, no Party will claim that any ambiguity in any Investment Facility Document shall be construed against the other Party by reason of its identity as a drafter.
		

		
			18.9.    Successors and Assigns.  Except as expressly provided in this Agreement, neither this Agreement nor any of the rights and obligations set forth herein shall be assigned by either Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld; provided, that Investor may assign its rights and obligations hereunder to TRGP Capital Partners, L.P. or an Affiliate thereof without the prior consent of Plaintiff.
		

		
			18.10.  Severability.  If any provision of this Agreement is held invalid, illegal or unenforceable, the Parties shall negotiate in good faith so as to replace each invalid, illegal or unenforceable provision with a valid, legal and enforceable provision which will, in effect, from an economic viewpoint, most nearly and fairly approach the effect of the invalid, illegal or unenforceable provision and the intent of the Parties in entering into this Agreement.
		

		
			18.11.  Relationship of the Parties.  
		

		
			18.11.1    Investor.  The Investor and certain of its Affiliates are engaged in a capital provision and advisory business principally focused on assets connected to litigation, arbitration or mediation.  The Investor and its Affiliates are not law firms and are not engaged in the practice of law with respect to any Claim or the Plaintiff.  The Plaintiff may not, and shall not, rely on any of the Investor or their Affiliates for legal advice.
		

		
			18.11.2    No Fiduciary Relationship.  Nothing in this Agreement or any other Investment Document shall give rise to or be construed to create a fiduciary, lawyer-client, lender-borrower, agency or other non-contractual relationship between the Parties.
		

		
			18.11.3    No Partnership.  Neither this Agreement nor any other Investment Document shall create or be construed to create any joint venture, partnership or any other type of affiliation between the Parties, nor does this Agreement or any other Investment Document create a joint interest in any Claim for any purpose, including for U.S. federal, state and local income tax purposes.
		

		
			18.12.  No Rights of Third Parties.  The provisions of this Agreement are solely for the benefit of the Parties, Litigation Counsel and IPR Counsel.  The Parties hereby acknowledge that each of Litigation Counsel and IPR Counsel is a third-party beneficiary of, and may enforce directly, the provisions of (a), in the case of Litigation Counsel, Sections 5.6, and 6.5.1-6.5.3 of this Agreement and (b) in the case of IPR Counsel, Section 5.5 of this Agreement.  The Parties agree that, except as set forth in the prior sentence or otherwise expressly set forth in this Agreement, there are no intended third-party beneficiaries to this Agreement.
		

		
			18.13.  Notice to Parties.  Unless another person is designated in writing for receipt of notices hereunder, notices to the respective Parties shall be sent to the following persons designated below.  All notices shall be sent by both email and either (a) overnight mail or (b) certified mail. 
		

		
			
		

		
			

		 

		

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			Notice to Plaintiff:
		

		
			 
		

		
			Netlist, Inc.
		

		
			175 Technology
		

		
			Irvine, CA 92618
		

		
			Attn. Gail Sasaki
		

		
			Chief Financial Officer
		

		
			Direct: (949) 679-0113
		

		
			Cell: (714) 337-2155
		

		
			Fax: (949) 435-0031
		

		
			Email: gsasaki@netlist.com
		

		
			 
		

		
			Notice to Investor:
		

		
			 
		

		
			TR Global Funding V, LLC
		

		
			c/o TRGP Capital Management, LLC
		

		
			777 3rd Avenue, 31st Floor
		

		
			New York, New York 10017
		

		
			Attention: Michael K. Rozen
		

		
			Work: (212) 527-9605
		

		
			Cell: (917) 414-1385
		

		
			Email: mrozen@trgpcap.com
		

		
			 
		

		
			18.14.  Counterparts. This Agreement may be executed in one or more counterparts, all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered by email (via .pdf file), which shall be deemed the same as originals.
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, and intending to be legally bound hereby, each of the undersigned Parties has approved and executed this Agreement as of the date first written above.
		

			
					
						 

					
					
						 

				
	
					
						PLAINTIFF

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						NETLIST, INC. 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						/s/ Gail Sasaki

					
					
						 

				
	
					
						By:     Gail Sasaki 

					
					
						 

				
	
					
						Title:  CFO, VP, Secretary

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						INVESTOR

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						TR GLOBAL FUNDING V, LLC

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:     TR Global Associates V, LLC,

					
					
						 

				
	
					
						its managing member

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						/s/ Michael K. Rozen

					
					
						 

				
	
					
						By:     Michael K. Rozen

					
					
						 

				
	
					
						Title:  Managing Member

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			Investment Agreement 
Signature Page

		

 

		

			 

		

		

		
			EXHIBIT A1
TO
INVESTMENT AGREEMENT
		

		
			SVB Intercreditor Agreement
		

		
			(Filed as Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q
for the quarterly period ended July 1, 2017)
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			EXHIBIT A2
TO
INVESTMENT AGREEMENT
		

		
			SVIC Intercreditor Agreement
		

		
			(Filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q
for the quarterly period ended July 1, 2017)
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			EXHIBIT B1
TO
INVESTMENT AGREEMENT
		

		
			Form of Litigation Counsel Investment Request
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			[MINTZ LEVIN LETTERHEAD]
		

		
			[Date:]
		

		
			TR Global Funding V, LLC
		

		
			c/o TRGP Capital Management, LLC
		

		
			777 Third Avenue, 31st Floor
		

		
			New York, NY  10017
		

		
			E-Mail: Billing@trgpcap.com
		

		
			Re:     Investment Request – Netlist, Inc.
		

		
			Gentlemen:
		

		
			The undersigned, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. (“Mintz Levin”), refers to the Investment Agreement, dated [●], 2017 (as from time to time amended, the “Investment Agreement,” the terms defined therein being used herein as therein defined), between Netlist, Inc. and TR Global Funding V, LLC (together with its successors and assigns, “Investor”), and hereby gives you notice, irrevocably, pursuant to [Section ‎6.1] [FOR INITIAL INVESTMENT] [Section 6.2] [FOR SUBSEQUENT INVESTMENT] of the Investment Agreement, that the undersigned hereby requests an Investment under the Investment Agreement, and in that regard sets forth below the information relating to such Funding (the “Proposed Investment”): 
		

		
			(i)     The amount of the Proposed Investment is $_____________.
		

		
			(ii)    The account to which proceeds of the Proposed Borrowing should be      deposited is __________.
		

		
			Copies of all invoices supporting the Proposed Investment are attached hereto.
		

		
			Very truly yours,
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			cc:  Netlist, Inc. (via e-mail) 
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			EXHIBIT B2
TO
INVESTMENT AGREEMENT
		

		
			Form of Certification for Litigation Counsel Investment Request
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			[NETLIST INC. LETTERHEAD]
		

		
			[Date:]
		

		
			TR Global Funding V, LLC
		

		
			c/o TRGP Capital Management, LLC
		

		
			777 Third Avenue, 31st Floor
		

		
			New York, NY  10017
		

		
			E-Mail: Billing@trgpcap.com
		

		
			Re:     Investment Request – Netlist, Inc.
		

		
			Gentlemen:
		

		
			The undersigned, Netlist, Inc. (“Plaintiff”), refers to (1) the Investment Agreement dated [●], 2017 (as from time to time amended, the “Investment Agreement,” the terms defined therein being used herein as therein defined), between Plaintiff and TR Global Funding V, LLC (together with its successors and assigns, “Investor”), and (2) the Investment Request, dated [●], by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. (the “Mintz Levin Investment Request”).  Plaintiff has reviewed the Mintz Levin Investment Request and copies of all invoices supporting the Proposed Investment (as defined in the Mintz Levin Investment Request).
		

		
			The undersigned hereby certifies that the following statements are true on the date hereof and will be true on the date of the Proposed Investment:
		

		
			(A)     the representations and warranties contained in Section 2 of the Investment Agreement are true and correct on the Effective Date and on and as of the date hereof as if made on the date hereof (except to the extent any such representation or warranty speaks as of any earlier date, in which case they shall be true and correct as of such earlier date), and immediately after giving effect to the Proposed Investment and to the application of the proceeds therefrom; and
		

		
			(B)     no event has occurred and is continuing, or would result from such Proposed Investment or from the application of the proceeds therefrom, which constitutes an Investor Termination Event under the Investment Agreement or Event of Default under the Security Agreement.
		

		
			This Mintz Levin Investment Request is also a representation and warranty by Borrower that all other conditions specified in [Section ‎7.1 and Section 7.2] [Section ‎7.2] will be satisfied on and as of the date of the Proposed Investment.
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			Very truly yours,
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			cc: Mintz Levin (via e-mail) 
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			EXHIBIT B3
TO
INVESTMENT AGREEMENT
		

		
			Form of Plaintiff Investment Request
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			[NETLIST, INC. LETTERHEAD]
		

		
			[Date:]
		

		
			TR Global Funding V, LLC
		

		
			c/o TRGP Capital Management, LLC
		

		
			777 Third Avenue, 31st Floor
		

		
			New York, NY  10017
		

		
			E-Mail: Billing@trgpcap.com
		

		
			Re:     Investment Request – Netlist, Inc.
		

		
			Gentlemen:
		

		
			The undersigned, Netlist, Inc. (“Plaintiff”), refers to the Investment Agreement dated [●], 2017 (as from time to time amended, the “Investment Agreement,” the terms defined therein being used herein as therein defined), between Plaintiff and TR Global Funding V, LLC (together with its successors and assigns, “Investor”), and hereby gives you notice, irrevocably, pursuant to [Section ‎6.1] [FOR INITIAL INVESTMENT] [Section 6.2] [FOR SUBSEQUENT INVESTMENT] of the Investment Agreement, that the undersigned hereby requests an Investment under the Investment Agreement, and in that regard sets forth below the information relating to such Funding (the “Proposed Investment”): 
		

		
			(ii)     The amount of the Proposed Investment is $_____________.
		

		
			(ii)     The account to which proceeds of the Proposed Borrowing should be      deposited is __________.
		

		
			Copies of all invoices supporting the Proposed Investment are attached hereto.
		

		
			The undersigned hereby certifies that the following statements are true on the date hereof and will be true on the date of the Proposed Investment:
		

		
			(A)     the representations and warranties contained in Section 2 of the Investment Agreement are true and correct on the Effective Date and on and as of the date hereof as if made on the date hereof (except to the extent any such representation or warranty speaks as of any earlier date, in which case they shall be true and correct as of such earlier date), and immediately after giving effect to the Proposed Investment and to the application of the proceeds therefrom; and
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			(B)     no event has occurred and is continuing, or would result from such Proposed Investment or from the application of the proceeds therefrom, which constitutes an Investor Termination Event under the Investment Agreement or Event of Default under the Security Agreement.
		

		
			This Investment Request is a representation and warranty by Borrower that all other conditions specified in [Section ‎7.1 and Section 7.2] [Section ‎7.2] will be satisfied on and as of the date of the Proposed Investment.
		

		
			Very truly yours,
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			EXHIBIT C
TO
INVESTMENT AGREEMENT
		

		
			Litigation Counsel Fee Agreement
		

		
			[See Attached]
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			Confidential Treatment Requested.  Omitted portions are marked with [*****] and
have been filed separately with the Securities and Exchange Commission.

		

		

		
			[*****]
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			EXHIBIT D
TO
INVESTMENT AGREEMENT
		

		
			IPR Counsel Confirmations
		

		
			[See Attached]
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			Confidential Treatment Requested.  Omitted portions are marked with [*****] and
have been filed separately with the Securities and Exchange Commission.

		

		

		
			[*****]
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			EXHIBIT E
TO
INVESTMENT AGREEMENT
		

		
			Payment Procedures
		

		
			1.     Litigation Counsel.  
		

		
			a.     Litigation Counsel shall remit all Investment Requests simultaneously to Investor (by email addressed to Billing@trgpcap.com) and to Plaintiff.  
		

		
			b.     The initial Investment Request shall be accompanied by invoices for all Litigation Costs incurred during period from January 1, 2017 through the last day of the month preceding the date of such Investment Request.  
		

		
			c.     Each subsequent Investment Request shall be accompanied by invoices for all Litigation Costs incurred during the month preceding the date of such Investment Request.
		

		
			d.     Plaintiff shall review the Litigation Counsel invoices and submit a certification, in the form of Exhibit B2 to Investor within 10 Business Days.  Investor shall have no obligation to fund the Investment Request prior to receipt of such certification from Plaintiff.
		

		
			d.     Investor shall pay the Litigation Costs included in each Investment Request within 45 days of its receipt of such Investment Request.  
		

		
			2.     IPR Counsel.
		

		
			a.     Each IPR Counsel shall remit invoices for all IPR Costs incurred during month preceding the date of such remission to Plaintiff and not to Investor.  
		

		
			b.     Plaintiff shall submit Investment Requests for payment of IPR Costs directly to Investor by email addressed to Billing@trgpcap.com. 
		

		
			c.     The initial Investment Request for payment of IPR Costs shall be accompanied by invoices for all IPR Costs incurred during period from January 1, 2017 through the last day of the month preceding the date of such Investment Request.  
		

		
			d.     Each subsequent Investment Request shall be accompanied by invoices for all IPR Costs incurred during the month preceding the date of such Investment Request.
		

		
			e.      Investor shall pay the IPR Costs included in each Investment Request within 45 days of its receipt of such Investment Request.  
		

		
			3.     Fees Generally.  Plaintiff shall review all invoices submitted to it and use its best efforts to reconcile all fees, costs and expenses that are set forth therein.  In the event that Plaintiff determines that there is a discrepancy in such invoice (e.g., overbilling, non-compliance with the Investor Billing Guidelines, mathematical error, etc.), it shall promptly notify Investor and work 
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			in good faith with Investor to rectify such discrepancy with Litigation Counsel or IPR Counsel (or the vendor or other Person on whose behalf Litigation Counsel or IPR Counsel submitted such invoice).
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			EXHIBIT F
TO
INVESTMENT AGREEMENT
		

		
			Security Agreement
		

		
			(Filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q
for the quarterly period ended July 1, 2017)
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			SCHEDULE 2.1.10
TO
INVESTMENT AGREEMENT
		

		
			Litigation Related To The Asserted Patents
		

			
	
			
				 ·
			

			
	
			
			The ‘185, the ‘434 and the ‘501 patents were the subject of a complaint filed by Netlist on August 23, 2013, in Netlist, Inc. v. Smart Modular Technologies, Inc., Civil Action 4:13-cv-05889, pending in the Northern District of California.  On February 12, 2014, Netlist’s claims against Smart Modular were dismissed pursuant to a stipulation based on Smart Modular’s sworn statement that “SMART Modular does not and has not manufactured, used, sold, offered to sell, or imported the ULLtraDIMM storage product” and that “SMART Modular did not direct, finance, or otherwise participate in the development or production of the ULLtraDIMM line of products.”  The case was consolidated with Diablo Technologies, Inc. v. Netlist, Inc., Civil Action 4:13-cv-03901 on April 8, 2014.  On April 9, 2015, the district court granted a motion to stay the case pending inter partes review.  The case is stayed.

			
	
			
				 ·
			

			
	
			
			The ‘185, the ‘434 and the ‘501 patents were also the subject of a declaratory judgment complaint filed by Smart Modular Technologies, Inc. on August 23, 2013, in Smart Modular Technologies, Inc. v. Netlist, Inc., Civil Action 4:13-cv-03916, previously pending in the Northern District of California.  The case was dismissed on February 12, 2014, based on Smart Modular’s sworn statement that “SMART Modular does not and has not manufactured, used, sold, offered to sell, or imported the ULLtraDIMM storage product” and that “SMART Modular did not direct, finance, or otherwise participate in the development or production of the ULLtraDIMM line of products.”

			
	
			
				 ·
			

			
	
			
			The ‘185, the ‘434 and the ‘501 patents were also the subject of a declaratory judgment complaint filed by Diablo Technologies, Inc. on August 23, 2013, in Diablo Technologies, Inc. v. Netlist, Inc., Civil Action 4:13-cv-03901, previously pending in the Northern District of California.  The case was consolidated with Netlist, Inc. v. Smart Modular Technologies, Inc., Civil Action 4:13-cv-05889 on April 8, 2014, which is stayed. 

		
			

		 

		

			 

		

 

		

			 

		

		

		
			SCHEDULE 2.1.11
TO
INVESTMENT AGREEMENT
		

		
			Pending Litigation
		

			
	
			
				 ·
			

			
	
			
			See Schedule 2.1.10

			
	
			
				 ·
			

			
	
			
			The Litigation

			
	
			
				 ·
			

			
	
			
			Smart Modular v. Netlist, filed 9/13/12; Civil Action 2:12-cv-02319-MCE-EFB, pending in the EDCA.  

			
	
			
				 ·
			

			
	
			
			Netlist v. Google, filed 12/4/09; Civil Action 4:09-cv-05718, pending in the NDCA (currently stayed pending completion of inter partes reexaminations)

			
	
			
				 ·
			

			
	
			
			Netlist v. Inphi, filed 9/22/09; Civil Action 2:09-cv-06900, pending in the CDCA (currently stayed pending completion of inter partes reexaminations)nlst_Ex10_3

		
			Exhibit 10.3
		

		
			SECURITY AGREEMENT
		

		
			SECURITY AGREEMENT (this "Agreement"), dated as of May 3, 2017, made by Netlist, Inc., a Delaware corporation (together with its successors and assigns, "Grantor"), in favor of TR Global Funding V, LLC, a Delaware limited liability company managed by TR Global Associates  V, LLC (together with its successors and assigns, "Investor").
		

		
			RECITALS:
		

		
			WHEREAS, reference is made to that certain Investment Agreement, dated as of the date hereof (as it may be amended, restated, supplemented or otherwise modified from time to time, the "Investment Agreement"), between Grantor and Investor; and
		

		
			WHEREAS, it is a condition precedent to Investor making any Investment and providing any other financial accommodation to Grantor under the Investment Agreement that Grantor shall have executed and delivered this Agreement to Investor;  and
		

		
			WHEREAS, Grantor has determined that the execution, delivery and performance of this Agreement will directly benefit, and is in the best interests of, Grantor.
		

		
			NOW, THEREFORE, in consideration of the premises and the agreements herein and in order to induce Investor to make and maintain the Investments and to provide other financial accommodations to Grantor pursuant to the Investment Agreement, the Grantor hereby agrees with Investor as follows:
		

		
			Section 1.   Definitions.
		

		
			(a)       Reference is hereby made to the Investment Agreement for a statement of the terms thereof.  All capitalized terms used in this Agreement that are defined in the Investment Agreement or in Article 8 or 9 of the UCC and that are not otherwise defined herein shall have the same meanings herein as set forth therein; provided that terms used herein that are defined in the UCC on the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment of such statute except as Investor may otherwise determine.  If any conflict or inconsistency exists between this Agreement and the Investment Agreement, the Investment Agreement shall govern.
		

		
			(b)       The incorporation by reference of terms defined in the Investment Agreement shall survive any termination of the Investment Agreement until this Agreement is terminated.
		

		
			(c)       As used in this Agreement, the following terms shall have the following meanings, such meanings to be applicable equally to both the singular and plural forms of such terms:
		

		
			
		

		
			

		 

 

		

		
			"Agreement" has the meaning set forth in the preamble.
		

		
			"Collateral" has the meaning set forth in Section 2 hereof.
		

		
			“Event of Default” has the meaning set forth in Section 8(a) hereof.
		

		
			"Grantor" has the meaning set forth in the Recitals hereto.
		

		
			"Investment Agreement" has the meaning set forth in the Recitals hereto.
		

		
			"Patent Licenses" means all licenses, contracts or other agreements, whether written or oral, (i) naming Grantor as licensor and providing for the grant of any right to manufacture, use, practice, offer for sale, sell, make, have made or import products or any invention, as the case may be, covered by any Patent or (ii) naming Grantor as licensee and providing for the grant of any right to manufacture, use, practice, offer for sale, sell, make, have made or import products or any invention, as the case may be, covered by any  patent (other than the Patents),  and granted in connection with the resolution of the Claim.
		

		
			"Patents" means the patents and patent applications listed in Schedule A to the Patent Security Agreement attached as Exhibit A.
		

		
			"Perfection Requirements" has the meaning set forth in Section 5(r) hereof.
		

		
			"Reference Entity Debt"  has the meaning set forth in Section 2(c) hereof.
		

		
			"UCC" shall mean the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that in the event that, by reason of mandatory provisions of law, any or all of the perfection or priority of, or remedies with respect to, any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New York, the term "UCC" shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions hereof relating to such perfection, priority or remedies.
		

		
			Section 2.   Grant of Security Interest.   As collateral security for the payment, performance and observance of all of the Obligations, Grantor hereby pledges and assigns to Investor (and its agents and designees), and grants to Investor (and its agents and designees) a continuing security interest in all of Grantor’s right, title and interest in, to and under the following, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, (collectively, the "Collateral"):
		

		
			(a)        all Commercial Tort Claims set forth in Schedule 2(a) hereto (as such schedule may be updated from time to time);
		

		
			(b)        the Recoveries;
		

		
			(c)        the obligation of the Reference Entity to pay the Recoveries and any other amounts determined to be owing by the Reference Entity in respect of the Claim or the Litigation (collectively, the "Reference Entity Debt");
		

		
			
		

		
			

		 

		

			-2-

		

 

		

		
			(d)        all Supporting Obligations (as defined in the UCC) relating to the Reference Entity Debt, including any bond posted to insure the payment thereof;
		

		
			(e)        the Patents; 
		

		
			(f)        the Patent Licenses;  and
		

		
			(g)        all Proceeds, including all Cash Proceeds and Noncash Proceeds (each as defined in the UCC), and products of any and all of the foregoing Collateral;
		

		
			in each case, howsoever Grantor's interest therein may arise or appear (whether by ownership, security interest, claim or otherwise).    Without limiting the generality of the foregoing, the Collateral consists of all rights of Grantor in and to the Claim and all judgments, settlements and recoveries therein or other resolutions thereof.  The foregoing grant includes all rights, powers and options (but none of the obligations, if any) of Grantor under any instrument included in the Collateral, including the immediate and continuing right to claim for, collect, receive and give receipt for payments in respect of the Collateral and all other monies payable under the Collateral, to give and receive notices and other communications, to exercise all rights and options, to bring proceedings in the name of Grantor or otherwise and generally to do and receive anything that Grantor is or may be entitled to do or receive under or with respect to the Collateral.
		

		
			Section 3.   Security for Obligations.  
		

		
			(a)       The security interest created hereby in the Collateral constitutes continuing collateral security for all of the following obligations, whether now existing or hereafter incurred:
		

		
			(i)      the prompt and complete payment by Grantor, as and when due and payable (whether by declaration, demand or otherwise), of all amounts owing by Grantor in respect of the Investment Agreement and/or the other Investment Facility Documents, including, without limitation, (i) all Obligations and (ii) all indemnifications and all other amounts due or to become due under any Investment Facility Document; and
		

		
			(ii)     the prompt payment and due performance and observance by Grantor of all of its other obligations from time to time existing in respect of this Agreement and any other Investment Facility Document.
		

		
			(b)       Notwithstanding anything herein to the contrary, (i) Grantor shall remain liable for all obligations to third parties in respect of the Collateral, and nothing contained herein is intended or shall be a delegation of duties to Investor, (ii) Grantor shall remain liable under each agreement included in the Collateral to perform all of its obligations thereunder in accordance with, and pursuant to, the terms and provisions thereof, and Investor shall not have any obligation or liability under any such agreement by reason of, or arising out of, this Agreement or any other document related thereto prior to its acquisition thereof by enforcement of its rights under this Agreement or transfer in lieu of such enforcement, nor shall Investor have any obligation to make any inquiry as to the nature or sufficiency of any payment received by it or have any obligation to take any action to collect or enforce any rights under any agreement included in the Collateral, and (iii) the exercise by Investor of any of its rights hereunder shall not release Grantor from any of its 
		

		
			
		

		
			

		 

		

			-3-

		

 

		

		
			duties or obligations under the contracts and agreements included in the Collateral.
		

		
			Section 4.   [Reserved].
		

		
			Section 5.   Representations and Warranties.   Grantor represents and warrants as follows:
		

		
			(a)       Schedule 5(a)  (as may be amended, supplemented or otherwise modified from time to time in accordance with the terms hereof) hereto sets forth a complete and accurate list as of the date hereof of (i) the exact legal name of Grantor, (ii) the jurisdiction of organization of Grantor, (iii) the type of organization of Grantor, (iv) the organizational identification number of Grantor (or states that no such organizational identification number exists), and (v) location of Grantor's chief place of business and chief executive office.  As of the date hereof, except as provided on Schedule 5(a),  Grantor has not changed its name, principal residence or jurisdiction of organization, chief executive office or sole place of business, or its corporate structure in any way (e.g., by merger, consolidation, change in corporate form or otherwise), in each case, within the past five years.
		

		
			(b)       Grantor is qualified to do business in each jurisdiction in which the nature of its business so requires.  Grantor has not filed any certificates of dissolution or liquidation, any certificates of domestication, transfer or continuance in any other jurisdiction.
		

		
			(c)       [Reserved].
		

		
			(d)       [Reserved].
		

		
			(e)       [Reserved].
		

		
			(f)        [Reserved].
		

		
			(g)       Grantor has not set off or agreed to set off any amounts against the Claim or the Reference Entity Debt and no rights of set-off or similar rights against the Grantor exist which will permit any set-off of or counterclaim against the Claim and/or the Reference Entity Debt.
		

		
			(h)       Except as set forth in the Litigation, Grantor has not received any notice and is not otherwise aware that the Claim or the Reference Entity Debt or any portion thereof are subject to any impairment or are otherwise invalid or void.
		

		
			(i)        Grantor is not insolvent and has no Insolvency Proceedings threatened or outstanding against it.
		

		
			(j)        [Reserved].
		

		
			(k)       [Reserved].
		

		
			(l)        [Reserved].
		

		
			
		

		
			

		 

		

			-4-

		

 

		

		
			(m)      Schedule 5(m) hereto sets forth a complete and accurate list of all patents and patent applications, if any, applicable to the Claim.  Each Patent is subsisting and in full force and effect, has not been adjudged invalid or unenforceable in a non-appealable final judgment, is, to the best of Grantor's knowledge, valid and enforceable and has not been abandoned in whole or in part.  To the best of Grantor's knowledge, none of the Patents conflicts with the patent or other intellectual property rights of others and Grantor is not now infringing or in conflict with any such rights of others.    Except as related to the Litigation, Grantor has not received any notice that it is violating or infringing or that it has violated or infringed, or that invites Grantor to take a license under, the patent rights or other intellectual property rights of any Person.
		

		
			(n)       [Reserved].
		

		
			(o)      Except as set forth in the Litigation, to the best of Grantor's knowledge: (i) no employee, independent contractor or agent of Grantor has (mis)appropriated any patents, patent rights or other intellectual property rights of any other Person in the course of the performance of his or her duties as an employee, independent contractor or agent of Grantor; and (ii) no employee, independent contractor or agent of Grantor is in default or breach of any term of any employment agreement, non-disclosure agreement, assignment of inventions agreement or similar agreement, or contract relating in any way to the protection, ownership, development, use or transfer of the Patents.
		

		
			(p)       The Grantor is and will be at all times the sole and exclusive owner of, or otherwise have and will have adequate rights in, the Collateral free and clear of any Liens except for the Permitted Liens.  No effective financing statement or other instrument similar in effect covering all or any part of the Collateral is on file in any recording or filing office with respect to a valid Lien except such as may have been filed to perfect or protect any Permitted Lien.
		

		
			(q)       The exercise by Investor of any of its rights and remedies hereunder and pursuant to the Intercreditor Agreement, will not contravene any law or contractual obligation binding on or otherwise affecting Grantor or any of its properties and will not result in, or require the creation of, any Lien upon or with respect to any of its properties. 
		

		
			(r)        No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or any other Person, is required for (i) the due execution, delivery and performance by Grantor of this Agreement, or (ii) the grant by Grantor of the security interest purported to be created hereby in the Collateral.  No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or any other Person, is required for the perfection of the security interest purported to be created hereby in the Collateral, except (A) for the filing under the UCC as in effect in the applicable jurisdiction of the financing statements described in Schedule 5(r) hereto, all of which financing statements have been duly filed and are in full force and effect, (B) with respect to any action that may be necessary to obtain control of Collateral constituting Deposit Accounts the taking of such actions, and (C)  Investor's having possession of Documents, Instruments and cash constituting Collateral (subclauses (A)-(C), each a "Perfection Requirement" and collectively, the "Perfection Requirements").
		

		
			(s)       This Agreement creates a legal, valid and enforceable security interest in favor of Investor in the Collateral, as security for the Obligations.  The Perfection 
		

		
			
		

		
			

		 

		

			-5-

		

 

		

		
			Requirements result in the perfection of such security interests.  Such security interests are, or in the case of Collateral in which Grantor obtains rights after the date hereof, will be, perfected, first priority security interests, subject in priority only to the Permitted Liens, and the Perfection Requirements.
		

		
			(t)       Grantor owns the Collateral pledged by it and is the sole legal and beneficial owner of, and has good title to, all processes, applications, inventions, trade secrets, entitlements and other rights underlying the Claim and the Litigation free and clear of any and all Liens, rights or claims of all other persons, including Liens arising as a result of Grantor becoming bound (as a result of merger or otherwise) as debtor under a security agreement entered into by another Person (except for Permitted Liens).
		

		
			Section 6.   Covenants as to the Collateral.  During the period from the Effective Date until the Termination Date, unless Investor shall otherwise consent in writing:
		

		
			(a)       Further Assurances.  Grantor shall take such action and execute, acknowledge and deliver, at its sole cost and expense, such agreements, instruments or other documents as Investor may require from time to time in order (i) to perfect and protect, or maintain the perfection of, the security interest and Lien purported to be created hereby; (ii) to enable Investor to exercise and enforce its rights and remedies hereunder in respect of the Collateral; or (iii) otherwise to effect the purposes of this Agreement.  Grantor shall not take or fail to take any action which could in any manner impair the validity or enforceability of Investor's security interest in and Lien on any Collateral.  
		

		
			(b        Notices and Communications; Defense of Title; Amendments; Equity Issuances.  Grantor shall, at Grantor's expense:
		

		
			(i)      [Reserved]; and
		

		
			(ii)     defend Investor's right, title and security interest in and to the Collateral against the claims of any Person, keep the Collateral free from all Liens (except Permitted Liens), and not sell, exchange, transfer, assign, lease or otherwise dispose of the Collateral or any interest therein, except as permitted under the Investment Facility Documents.  
		

		
			(c)       Further Duties.
		

		
			(i)      Except for the Permitted Liens, Grantor shall not create or suffer to exist any Lien upon or with respect to any of the Collateral, and Grantor shall defend the Collateral against all persons at any time claiming any interest therein (other than Permitted Liens).
		

		
			(ii)     Promptly upon obtaining knowledge thereof, Grantor shall notify Investor in writing of any event that could reasonably be expected to have a material adverse effect on the value of the Collateral or any portion thereof, the ability of Grantor or Investor to dispose of the Collateral or any portion thereof, or the rights and remedies of Investor in relation thereto.
		

		
			(iii)    Patents.   Grantor has duly executed and delivered the Patent Security Agreement in the form attached hereto as Exhibit A.  Grantor will take all action necessary 
		

		
			
		

		
			

		 

		

			-6-

		

 

		

		
			to maintain all of the Patents and the Patent Licenses in full force and effect.  Grantor will cause to be taken all necessary steps in any proceedings before the United States Patent and Trademark Office to maintain each Patent.
		

		
			(iv)    Grantor shall not challenge the validity, perfection or priority (as and to the extent provided in this Agreement) of the Liens granted to Investor.
		

		
			(d)       Status of Security Interest.   Grantor shall maintain the security interest of Investor hereunder in all Collateral as a valid, perfected, first priority Lien, except for any Permitted Lien (provided that no filing by Investor of a UCC-3 financing statement amendment or failure of Investor to file a UCC continuation statement will be deemed to breach this covenant).
		

		
			(e)       Reliance.
		

		
			(i)      Grantor agrees and acknowledges that the duties contained in this Section 6 are a material inducement for Investor to enter into this Agreement, and that Investor may, if such covenants are breached, immediately exercise all of the remedies provided herein or under law.  Grantor further agrees that a breach of any of the covenants contained in this Section 6 will cause irreparable injury to Investor, that Investor has no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section 6 shall be specifically enforceable against Grantor, and Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that no default has occurred giving rise to the Obligations becoming due and payable prior to their stated maturities.  Nothing in this Section shall in any way limit the rights of Investor hereunder.
		

		
			(f)       Records; Inspection and Reporting.  
		

		
			(i)      Subject to attorney-client privilege, Investor shall at all times have full and free access during normal business hours upon three business days prior written notice to those of the books, correspondence and records of Grantor that relate to the Collateral, and Investor and its representatives may examine the same, take extracts there from and make photocopies thereof, and Grantor agrees to render to Investor, at Investor's cost and expense such clerical and other assistance as may be reasonably requested with regard thereto.    
		

		
			(ii)     Grantor shall not, without at least ten Business Days' prior written notice to Investor, amend, modify or otherwise change its name, organizational identification number or FEIN, its jurisdiction of organization, and chief executive office as set forth in Schedule 5.1(a) hereto.
		

		
			Section 7.   Additional Provisions Concerning the Collateral.
		

		
			(a)       To the maximum extent permitted by applicable law, and for the purpose of taking any action that Investor may deem necessary or advisable to accomplish the purposes of this Agreement, Grantor hereby (i) authorizes Investor to execute any such agreements, instruments or other documents in Grantor's name and to file such agreements, instruments or other documents in Grantor's name and in any appropriate filing office, 
		

		
			
		

		
			

		 

		

			-7-

		

 

		

		
			(ii) authorizes Investor at any time and from time to time to file, one or more financing or continuation statements and amendments thereto, relating to the Collateral that (A) describes or identifies the Collateral by type or in any other manner as Investor may determine, regardless of whether any particular asset of Grantor falls within the scope of Article 9 of the UCC or whether any particular asset of Grantor constitutes part of the Collateral, and (B) contains any other information required by Part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment, including, without limitation, whether Grantor is an organization, the type of organization and any organizational identification number issued to Grantor), (iii) ratifies such authorization to the extent that Investor has filed any such financing statements, continuation statements, or amendments thereto, prior to the date hereof,  and (iv) prepare, sign, and file for recordation in the proper registry, appropriate evidence of the lien and security interest granted herein in any Patent constituting Collateral in the name of Grantor as debtor, including the Patent Security Agreement.  A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law.
		

		
			(b)       Grantor hereby irrevocably appoints Investor as its attorney-in-fact and proxy, with full authority in the place and stead of Grantor and in the name of Grantor or otherwise, from time to time in Investor's discretion during the continuance of an Event of Default, to take any action and to execute any instrument that Investor may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation, (i) to ask, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under or in respect of any Collateral, (ii) to receive, endorse, and collect any drafts or other Instruments, Documents and Chattel Paper in connection with clause (i) above, (iii) to file any claims or take any action or institute any proceedings which Investor may deem necessary or desirable for the collection of any Collateral or otherwise to enforce the rights of Investor with respect to any Collateral, (iv) to receive, endorse and collect all Instruments made payable to Grantor in respect of the Claim and to give full discharge for the same, (v) to execute assignments, licenses and other documents to enforce the rights of Investor with respect to any Collateral, and (vi) to pay or discharge taxes or Liens levied or placed upon or threatened against the Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by Investor (in its sole discretion), and such payments made by Investor shall constitute additional Obligations of Grantor to Investor, be due and payable immediately without demand.  Grantor agrees to take all further acts that may be deemed necessary or advisable, in the reasonable judgment of Investor, to effectuate the purposes of this Section 7(b), including the execution of a power of attorney, effective under applicable law, providing for the authority to enter into the transactions described above in the name of Grantor.  This power is coupled with an interest and is irrevocable until the Termination Date.
		

		
			(c)       [Reserved].    
		

		
			(d)       If Grantor fails to perform any agreement or obligation contained herein, Investor may itself perform, or cause performance of, such agreement or obligation, in the name of Grantor or Investor, and the reasonable fees and expenses of Investor incurred in connection therewith shall be payable by the Grantor pursuant to Section 9 hereof constitute additional Obligations of the Grantor to Investor,  and be due and payable immediately without demand.
		

		
			
		

		
			

		 

		

			-8-

		

 

		

		
			(e)       The powers conferred on Investor hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers.  Other than the exercise of reasonable care to assure the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, Investor shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against other parties or any other rights pertaining to any Collateral and shall be relieved of all responsibility for any Collateral in its possession upon surrendering it or tendering surrender of it to any of the Grantor (or whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct).  Investor shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which Investor accords its own property.
		

		
			(f)       Anything herein to the contrary notwithstanding (i) Grantor shall remain liable under the Patent Licenses and otherwise in respect of the Collateral to the extent set forth therein to perform all of its obligations thereunder to the same extent as if this Agreement had not been executed, (ii) the exercise by Investor of any of its rights hereunder shall not release Grantor from any of its obligations under the Patent Licenses or otherwise in respect of  the Collateral, and (iii) Investor shall not have any obligation or liability by reason of this Agreement under the Patent Licenses or otherwise in respect of the Collateral, nor shall Investor be obligated to perform any of the obligations or duties of Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.
		

		
			Section 8.   Remedies Upon Default.  
		

		
			(a)       If any of the following has occurred and is continuing: (x) a Investor Termination Event, (y) a breach by Grantor of Sections 6(b) through 6(e) hereof, or (z) any material representation or warranty of Grantor contained herein shall be incorrect in any material respect when made (each of the foregoing, an "Event of Default"), then Investor may exercise in respect of the Collateral, in addition to all other rights and remedies provided for herein or otherwise available to it at law or in equity, all the rights and remedies of a secured party on default under the UCC (whether or not the UCC applies to the affected Collateral) to collect, enforce or satisfy any Obligations then owing, whether by acceleration or otherwise, and also may pursue any of the following separately, successively or simultaneously:
		

		
			(i)       [Reserved];
		

		
			(ii)      subject to the terms of the Investment Agreement,  Investor may be the purchaser of any or all of the Collateral at any public or private (to the extent the portion of the Collateral being privately sold is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations) sale in accordance with the UCC, and Investor shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such sale made in accordance with the UCC, to use and apply any of the Obligations as a credit on account of the purchase price for any Collateral payable by Investor at such sale.  Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of Grantor, and Grantor hereby waives (to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which it now has or may at any time in the future have under any rule of law or statute now existing 
		

		
			
		

		
			

		 

		

			-9-

		

 

		

		
			or hereafter enacted.  Grantor agrees that, to the extent notice of sale shall be required by law, at least ten days' notice to Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  Investor shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  Investor may adjourn any public or private sale from time to time by announcement at the time and place fixed there for, and such sale may, without further notice, be made at the time and place to which it was so adjourned.  Grantor agrees that it would not be commercially unreasonable for Investor to dispose of the Collateral or any portion thereof by using Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets.  Grantor hereby waives any claims against Investor arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale.  Nothing in this Section shall in any way limit the rights of Investor hereunder.  Grantor further agrees that a breach of any of the covenants contained in this Section will cause irreparable injury to the Investor, that the Investor has no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section shall be specifically enforceable against Grantor, and Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that no default has occurred giving rise to the Obligations becoming due and payable prior to their stated maturities.  Nothing in this Section shall in any way limit the rights of the Investor hereunder.
		

		
			(b)       Any cash held by Investor (or its agent or designee) as Collateral and all Cash Proceeds received by Investor (or its agent or designee) in respect of any sale of or collection from, or other realization upon, all or any part of the Collateral, Investor may, in the discretion of Investor, be held by Investor (or its agent or designee) as collateral for, and/or then or at any time thereafter applied (after payment of any amounts payable to Investor pursuant to Section 10 hereof) in whole or in part by Investor against, all or any part of the Obligations in such order as Investor shall elect, consistent with the provisions of the Investment Agreement.  Any surplus of such cash or Cash Proceeds held by Investor (or its agent or designee) and remaining after the Termination Date shall be paid over to whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct.
		

		
			(c)       Grantor hereby acknowledges that if Investor complies with any applicable requirements of law in connection with a disposition of the Collateral, such compliance will not adversely affect the commercial reasonableness of any sale or other disposition of the Collateral.
		

		
			(d)      Investor shall not be required to marshal any present or future collateral security (including, but not limited to, this Agreement and the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of Investor's rights hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights, however existing or arising.  To the extent that Grantor lawfully may, Grantor shall not invoke any law relating to the marshalling of collateral which might cause delay in or impede the enforcement of Investor's rights under this Agreement or under any other instrument creating or evidencing any of the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, 
		

		
			
		

		
			

		 

		

			-10-

		

 

		

		
			and, to the extent that it lawfully may, Grantor hereby irrevocably waives the benefits of all such laws.
		

		
			Section 9.     Indemnity.   Grantor agrees to defend, protect, indemnify and hold harmless Investor and each other Indemnitee in accordance with Section 17.1 of the Investment Agreement.  
		

		
			Section 10.   Notices, Etc.   All notices and other communications provided for hereunder shall be given in accordance with the notice provision of the Investment Agreement.
		

		
			Section 11.   Security Interest Absolute.  
		

		
			(a)         All rights of Investor, all Liens and all obligations of Grantor hereunder shall be absolute and unconditional irrespective of (i) any lack of validity or enforceability of the Investment Agreement or any other Investment Facility Document, (ii) any change in the time, manner or place of payment of, or in any other term in respect of, all or any of the Obligations, or any other amendment or waiver of or consent to any departure from the Investment Agreement or any other Investment Facility Document, (iii) any exchange or release of, or non-perfection of any Lien on any Collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Obligations, or (iv) any other circumstance that might otherwise constitute a defense available to, or a discharge of, any of the Grantor in respect of the Obligations.  All authorizations and agencies contained herein with respect to any of the Collateral are irrevocable and powers coupled with an interest.
		

		
			(b)         Grantor hereby waives (i) promptness and diligence, (ii) notice of acceptance and notice of the incurrence of any Obligation by any Borrower, (iii) notice of any actions taken by Investor or any other Person under any Investment Facility Document or any other agreement, document or instrument relating thereto, (iv) all other notices, demands and protests, and all other formalities of every kind in connection with the enforcement of the Obligations, the omission of or delay in which, but for the provisions of this subsection (b), might constitute grounds for relieving Grantor of Grantor's obligations hereunder and (v) any requirement that Investor protect, secure, perfect or insure any security interest or other lien on any property subject thereto or exhaust any right or take any action against Grantor or any other Person or any collateral.
		

		
			Section 12.   Miscellaneous.
		

		
			(a)         No amendment of any provision of this Agreement (including any Schedule attached hereto) shall be effective unless it is in writing and signed by Grantor and Investor, and no waiver of any provision of this Agreement, and no consent to any departure by Grantor therefrom, shall be effective unless it is in writing and signed by Investor, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.
		

		
			(b)         No failure on the part of Investor to exercise, and no delay in exercising, any right hereunder or under any other Investment Facility Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.  The rights and remedies of Investor provided herein and in the other Investment Facility Documents are cumulative and are in addition 
		

		
			
		

		
			

		 

		

			-11-

		

 

		

		
			to, and not exclusive of, any rights or remedies provided by law.  The rights of Investor under any Investment Facility Document against any party thereto are not conditional or contingent on any attempt by such Person to exercise any of its rights under any other Investment Facility Document against such party or against any other Person, including but not limited to, Grantor.
		

		
			(c)         This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect, subject to paragraph (e) below, until the Termination Date and (ii) be binding on Grantor all other Persons who become bound as debtor to this Agreement in accordance with Section 9-203(d) of the UCC, and shall inure, together with all rights and remedies of Investor hereunder, to the benefit of Investor and their respective successors, transferees and assigns.  Without limiting the generality of clause (ii) of the immediately preceding sentence, Investor may assign or otherwise transfer its respective rights and obligations under this Agreement and any other Investment Facility Document to any other Person pursuant to the terms of the Investment Agreement, and such other Person shall thereupon become vested with all of the benefits in respect thereof granted to Investor herein or otherwise.  Upon any such assignment or transfer, all references in this Agreement to Investor shall mean the assignee of Investor.  For the avoidance of doubt, Investor may assign its rights and obligations hereunder to TRGP Capital Partners, L.P. or an Affiliate thereof without the prior consent of Grantor.  None of the rights or obligations of Grantor hereunder may be assigned or otherwise transferred without the prior written consent of Investor, and any such assignment or transfer shall be null and void.
		

		
			(d)         After the occurrence of the Termination Date, (i) subject to paragraph (e) below, this Agreement and the security interests and licenses created hereby shall terminate and all rights to the Collateral shall revert to the Grantor, (ii) Investor agrees to file UCC amendments on or promptly after the Termination Date to evidence the termination of the Liens so released and (iii) Investor will, upon the Grantor's request and at the Grantor's cost and expense, (A) promptly return to the Grantor (or whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct) such of the Collateral as shall not have been sold or otherwise disposed of or applied pursuant to the terms hereof, and (B) promptly execute and deliver to the Grantor such documents and make such other filings as the Grantor shall reasonably request to evidence such termination, without representation, warranty or recourse of any kind.  In addition, upon any sale or disposition of any item of Collateral in a transaction expressly permitted under the Investment Agreement,  Investor agrees to execute a release of its security interest in such item of Collateral, and Investor shall, upon the reasonable request of the Grantor and at the Grantor' cost and expense, execute and deliver to the Grantor such documents as the Grantor shall reasonably request to evidence such release, without representation, warranty or recourse of any kind.  
		

		
			(e)         This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against Grantor for liquidation or reorganization under the United States Bankruptcy Code or similar insolvency, debtor relief or debt adjustment law, should Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of Grantor's assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment or performance of the Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a "voidable preference," "fraudulent conveyance," or otherwise, all as though such 
		

		
			
		

		
			

		 

		

			-12-

		

 

		

		
			payment or performance had not been made.  In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.
		

		
			(f)         THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT (I) AS REQUIRED BY MANDATORY PROVISIONS OF LAW AND (II) TO THE EXTENT THAT THE VALIDITY AND PERFECTION OR THE PERFECTION AND THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE SECURITY INTEREST CREATED HEREBY, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.
		

		
			(g)        In addition to and without limitation of any of the foregoing, this Agreement shall be deemed to be an Investment Facility Document.
		

		
			(h)        Grantor irrevocably and unconditionally waives any right it may have to claim or recover in any legal action, suit or proceeding with respect to this Agreement any special, exemplary, punitive or consequential damages.
		

		
			(i)         If any provision of this Agreement is held invalid, illegal or unenforceable, the Parties shall negotiate in good faith so as to replace each invalid, illegal or unenforceable provision with a valid, legal and enforceable provision which will, in effect, from an economic viewpoint, most nearly and fairly approach the effect of the invalid, illegal or unenforceable provision and the intent of the Parties in entering into this Agreement.
		

		
			(j)         Section headings herein are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.
		

		
			(k)        This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which shall be deemed an original, but all of such counterparts taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Agreement by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart. 
		

		
			(l)         For purposes of this Agreement, all references to each Schedule attached hereto shall be deemed to refer to each such Schedule as updated from time to time in accordance with the terms of this Agreement.
		

		
			 
		

		
			 
		

		
			

		 

		

			-13-

		

 

		

		
			IN WITNESS WHEREOF, Grantor has caused this Agreement to be executed and delivered by its officer thereunto duly authorized, as of the date first above written.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						GRANTOR:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						NETLIST, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/Gail Sasaki

				
	
					
						 

					
					
						 

					
					
						Name:Gail Sasaki

				
	
					
						 

					
					
						 

					
					
						Title:CFO, VP, Secretary

				

		
			 
		

		
			
		

		
			

		 

		

			Security Agreement

		

		

			Signature Page

		

 

		

		
			EXHIBIT A
		

		
			TO
		

		
			SECURITY AGREEMENT
		

		
			Patent Security Agreement
		

		
			 
		

		
			 
		

		
			

		 

		

			Security Agreement

		

		

			Signature Page

		

 

		

		
			PATENT SECURITY AGREEMENT
		

		
			This Patent Security Agreement (this "Patent Security Agreement") is made as of [●], 2017, by Netlist, Inc. ("Grantor"), in favor of TR Global Funding V, LLC, a Delaware limited liability company managed by TR Global Associates V, LLC (together with its successors and assigns, "Grantee").
		

		
			WHEREAS, Grantor owns the patents listed on the attached Schedule A, which patents are issued or applied-for in the United States Patent and Trademark Office (the "Patents");
		

		
			WHEREAS, Grantor has entered into and agreed to be bound by all of the terms and provisions of a security agreement, dated [●], 2017 (as amended, restated, supplemented, modified or otherwise changed from time to time, the "Security Agreement"), in favor of Grantee;
		

		
			WHEREAS, pursuant to the Security Agreement, Grantor has granted to Grantee, a continuing security interest in the Patents and all proceeds thereof, including, without limitation, any and all causes of action arising out of or relating to any infringement thereof and any and rights to recover from past, present and future violations thereof (collectively, the "IP Collateral"), as collateral security for the payment, performance and observance of the Obligations (as defined in the Security Agreement).
		

		
			NOW, THEREFORE, as collateral security for the payment, performance and observance of all of the Obligations, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor hereby pledges and grants to Grantee a continuing security interest in the IP Collateral.
		

		
			All capitalized terms used but not otherwise defined herein have the meanings given to them in the Security Agreement.
		

		
			Grantor does hereby further acknowledge and affirm that the rights and remedies of Grantee with respect to the IP Collateral are more fully set forth in the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein.
		

		
			This Patent Security Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Signature pages may be detached from multiple separate counterparts and attached to a single counterpart.
		

		
			[Remainder of page intentionally left blank; signature page follows.]
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

		
			IN WITNESS WHEREOF, Grantor has caused this Patent Security Agreement to be executed by a duly authorized officer of Grantor as of the date first set forth above.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						NETLIST, INC.,

				
	
					
						 

					
					
						as Grantor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Gail Sasaki

				
	
					
						 

					
					
						 

					
					
						Name: Gail Sasaki

				
	
					
						 

					
					
						 

					
					
						Title: CFO, VP, Secretary

				

		
			 
		

		
			
		

		
			

		 

		

			Parent Security Agreement

		

		

			Signature page

		

 

		

		
			SCHEDULE A
		

		
			TO 
		

		
			PATENT SECURITY AGREEMENT
		

		
			Patents
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Title

					
					
						Patent/Application No.

					
					
						Issue/Filing Date

				
	
					
						A MULTIRANK DDR MEMORY MODUAL WITH LOAD REDUCTION

					
					
						8756364

					
					
						6/17/2014

				
	
					
						MEMORY BOARD WITH SELF-TESTING CAPABILITY

					
					
						8001434

					
					
						8/16/2011

				
	
					
						MEMORY BOARD WITH SELF-TESTING CAPABILITY

					
					
						8359501

					
					
						1/22/2012

				
	
					
						MEMORY BOARD WITH SELF-TESTING CAPABILITY

					
					
						8689064

					
					
						4/1/2014

				
	
					
						SYSTEM AND METHOD UTILIZING DISTRIBUTED BYTE-WISE BUFFERS ON A MEMORY MODULE

					
					
						8516185

					
					
						8/20/2013

				
	
					
						SYSTEMS AND METHODS FOR HANDSHAKING WITH A MEMORY MODULE

					
					
						8489837

					
					
						7/16/2013

				
	
					
						MEMORY MODULE CAPABLE OF HANDSHAKING WITH A MEMORY CONTROLLER OF A HOST SYSTEM

					
					
						9,535,623

					
					
						1/3/2017

				
	
					
						MEMORY MODULE WITH DISTRIBUTED DATA BUFFERS AND METHOD OF OPERATION 

					
					
						9,606,907 

					
					
						3/28/2017

				

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

		
			SCHEDULE 2(a)
		

		
			TO
		

		
			SECURITY AGREEMENT
		

		
			Commercial Tort Claims
		

		
			The investigation pending in the ITC [Inv. No. 337-TA-1023] alleging that Defendant’s products infringe the Original Patents and the lawsuit Plaintiff filed against Defendant in the U.S. District Court for Central District of California [Case No. 8-16-cv-1605], alleging that Defendant’s products infringe the Patents.  
		

		
			The foregoing does not include any appeal taken from a decision or adjudication reached or issued in either of Inv. No. 337-TA-1023 or Case No. 8-16-cv-1605, or any other litigation or adversarial proceeding.  
		

		
			“ITC” means International Trade Commission
		

		
			“Defendant” means SK hynix Inc. and its Affiliates.
		

		
			“Original Patent” means U.S. Patent Nos. 8,756,364, 8,516,185, 8,001,434,8 8,359,501, 8,689,064, and 8,489,837
		

		
			“Patent” means the Original Patents and U.S. Patent Nos. 9,535,623, and 9,606,907. 
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			SCHEDULE 5(a)
		

		
			TO
		

		
			SECURITY AGREEMENT
		

		
			Organizational Information
		

		
			(i)     Exact legal name of Grantor:
		

		
			a.    Netlist, Inc.
		

		
			(ii)    Jurisdiction of organization of Grantor:
		

		
			a.    Delaware
		

		
			(iii)   Type of organization of Grantor:
		

		
			a.    Corporation
		

		
			(iv)   Organizational identification number of Grantor (or statement that no such organizational identification number exists):
		

		
			a.    3242099
		

		
			(v)    Address of Grantor's chief place of business and chief executive office:
		

		
			a.    175 Technology 
Irvine, CA 92618
		

		
			(vi)   Any different name, jurisdiction of organization, chief executive office or sole place of business used within the past five years:
		

		
			a.    None
		

		
			(vii)  Any merger, consolidation, change in corporate form within the past five years:
		

		
			a.    None
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			SCHEDULE 5(m)
		

		
			TO
		

		
			SECURITY AGREEMENT
		

		
			Patents
		

			
					
						Title

					
					
						Patent/Application No.

					
					
						Issue/Filing Date

				
	
					
						A MULTIRANK DDR MEMORY MODUAL WITH LOAD REDUCTION

					
					
						8756364

					
					
						6/17/2014

				
	
					
						MEMORY BOARD WITH SELF-TESTING CAPABILITY

					
					
						8001434

					
					
						8/16/2011

				
	
					
						MEMORY BOARD WITH SELF-TESTING CAPABILITY

					
					
						8359501

					
					
						1/22/2012

				
	
					
						MEMORY BOARD WITH SELF-TESTING CAPABILITY

					
					
						8689064

					
					
						4/1/2014

				
	
					
						SYSTEM AND METHOD UTILIZING DISTRIBUTED BYTE-WISE BUFFERS ON A MEMORY MODULE

					
					
						8516185

					
					
						8/20/2013

				
	
					
						SYSTEMS AND METHODS FOR HANDSHAKING WITH A MEMORY MODULE

					
					
						8489837

					
					
						7/16/2013

				
	
					
						MEMORY MODULE CAPABLE OF HANDSHAKING WITH A MEMORY CONTROLLER OF A HOST SYSTEM

					
					
						9,535,623

					
					
						1/3/2017

				
	
					
						MEMORY MODULE WITH DISTRIBUTED DATA BUFFERS AND METHOD OF OPERATION 

					
					
						9,606,907 

					
					
						3/28/2017

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			SCHEDULE 5(n)
		

		
			TO
		

		
			SECURITY AGREEMENT
		

		
			Patent Licenses
		

		
			Joint Development License Agreement, dated as of November 12, 2015, between Grantor and Samsung Electronics Co., Ltd.
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			SCHEDULE 5(r)
		

		
			TO
		

		
			SECURITY AGREEMENT
		

		
			UCC-1 Financing Statement Details
		

		
			A UCC financing statement to be filed in the office of the Delaware Secretary of State naming Grantor as debtor, Investor as secured party, and the Collateral as collateral.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}]]