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PatentGuy1

09/14/17 6:49 PM

#128880 RE: rige #128873

I respectfully disagree. If you look at the agreement, which is Exhibit 10-2 of LQMT's SEC 8-k filing on March 14, 2016 (https://www.sec.gov/Archives/edgar/data/1141240/000143774916027548/ex10-2.htm), you will see the following:

2.2. Patent License Grant to LMT. Upon the terms and conditions set forth herein (including the termination provisions in Article 7 hereof)
and subject to the Field of Use Restrictions, Eontec hereby grants to LMT a non-revocable, paid-up, royalty-free, perpetual license (or sublicense, as the
case may be) to the Eontec Licensed Patents and Eontec Licensed Technical Information to make, have made, use, offer to sell, sell, export and import
LMT Licensed Products within the LMT Field in the LMT Exclusive Territory and Non-Exclusive Territories. Such license shall be exclusive to LMT
(including to the exclusion of Eontec and its Affiliates) in the LMT Exclusive Territory and shall be non-exclusive in the Non-Exclusive Territories.
Notwithstanding the foregoing, nothing in this Agreement shall prohibit LMT from engaging in research or development activities in the Eontec
Exclusive Territory.
(See, Article 2 Patent License Grant and Related Covenants)



The license from Eontec to LQMT is subject to the Field of Use Restrictions.

The Field of Use Restrictions is found in Appendix C.

APPENDIX C
Field of Use Restrictions
The licenses granted under this Agreement shall be subject to the following exclusions, conditions, restrictions, and limitations:
1. The licenses granted to Eontec and LMT under this Agreement shall exclude the following products and fields of use:
a. Any Consumer Electronic Products (as defined below) or any components or sub-components suitable for use with any Consumer Electronic
Products. For this purpose, “Consumer Electronic Products” means personal computers (portable and desktop); tablet or slate style computing
devices; handheld electronic and/or communication devices (e.g., smartphones, digital music players, multi-function devices, etc.); any device
whose function includes the creation, storage or consumption of digital media; any component or sub-component in any Consumer Electronic
Product; and any accessory that is the same or similar (in the sole discretion of Apple, Inc.) to an accessory made or sold by or on behalf of Apple
(regardless of when Apple sold or started to sell such accessory, including after date of the closing of the Proposed Transaction) that is suitable
for use with any Consumer Electronic Product.



Section 2.2. clearly states the the license to LQMT is subject to the Field of Use Restriction, which clearly states that the license to LQMT excludes any consumer electronic product.

vanwes1

09/14/17 9:43 PM

#128901 RE: rige #128873

The way I read it that Enotec can't use CIP patents for CE. Li is already working with several phone companies to produce BMG phones. Li's IP is unrestricted except for geographic locations like in America and Europe. Lqmt is free to use Li's patents to produce anything they want in the CE or NonCE space. The agreement restricts the use of CIP patents only. If that weren't the case the Li would have made a second agreement with Apple.