My notes taken while reviewing the case file PTSC vs TPL.....see #11. Sure hope this comes up at the SHAM along with the commingling concerns.

From the declaration of Carlton Johnson

9. On or about December 17, 2008, I observed that PDS had approved payments to TPL to “reimburse” TPL for payments that (according to Mr. Leckrone) had been made to outside counsel handling the patent infringement litigation at that time, Townsend, Townsend & Crew (“Townsend”).I discovered later that Mr. Leckrone had not paid the Townsend firm the $500,000 as represented and called him on it.Mr. Leckrone eventually paid Townsend the $500,00 that had been wired to the TPL account approximately two months earlier.

In late 2008, I learned of negotiations underway between TPL and a third party leading to settlement of one of the patent infringement litigation matters.In that case the MMP portfolio was the primary focus of the litigation, but that defendant had also sued TL for declaratory relief that it was not infringing on TPL’s core Flash patent portfolio, in which Patriot has no involvement.The case settled by negotiated terms of MMP and Core Flash patent licenses to the third party.During the course of that negotiation, I observed firsthand that the numbers changed such that the settlement consideration paid by that defendant became more heavily weighted in favor of the Core Flash portfolio and away from the MMP component.I asked questions about this of Mr. Leckrone and never received satisfactory answers.

11. Mr. Leckrone has made a number of representations of the “value” of the MMP portfolio.In general his position is that the MMP is worth $1,000,000,000 (One Billon U.S. Dollars).

12.I am particularly concerned by two licenses written by TPL in the first quarter of 2010 that appear substantially low in relation to the gross sales reported by those companies.The amounts of the licenses appear to be below the licensing criteria that we have agreed to with TPL under the Business Plan of the ComAg.