1. Trading Innovation Special Libraries Association 2012 Annual Conference July 17, 2012 Chicago, Illinois

2. About IPXI The worlds first financial exchange that facilitates non- exclusive licensing and trading of IP rights with market- based pricing and standardized terms. Developed with significant input from leading corporate, university, and laboratory IP owners. 2

3. IPXI Core Objectives IP Market ProblemIP ExchangeResult Incomplete or insufficient market information Detailed prospectus, published pricing, consumption data reporting, bid/ask TRANSPARENCY - enabling more accurate IP asset management and R&D decisions Arbitrary or unilaterally determined IP value Market-based pricing reflecting the value of a technology and increasing buy-side confidence PRICE DISCOVERY – ensuring fair and reasonable pricing Lack of standards, including course of dealing, contract terms, and pricing Standardized tradable license rights accessible to all market participants LEVEL PLAYING FIELD – accelerating technology transfer and innovation Time and transaction cost inefficiencies associated with bilateral licensing Central marketplace with market enhancing solutions, such as standard contracts, outsourced auditing, and alternative dispute resolution processes EFFICIENCY - providing easy access, liquidity, and increasing transaction volume A more efficient and transparent IP marketplace 3

4. Unit License Right (ULR) Contract – Specification SAMPLE UNIT LICENSE RIGHT SPECIFICATION USP X,XXX,137 A/B/C General Description:USP X,XXX,123 A/B/C Value Seat Insert Patent(s): USP X,XXX,137 and continuations, continuations-in-part and foreign counterparts Fields of Use:All Restrictions:All Secondary Market sales through IPXI Issuer Right to Use:Yes including all subsidiaries Unit Basis:Each ULR covers one automotive or light truck engine Total Offered Quantity:50 million ULRs offered in 10 unit lots Term of Rights:Until used Opening:Dutch Auction (50% minimum quantity & price) Encumbrances:Prior Licensing History IPXI Price Banding:+/- 1% Amnesty: Full Tranche Priced at U137A: 10 million ULR $0.50 per unit U137B: 10 million ULR$0.75 per unit U137C: 30 million ULR$1.00 per unit Follow-on Offerings Through Term (2017) 10 million ULR each Deemed Market Price SECONDARY MARKET PRICE DISCOVERY USP X,XXX,137 A/B/C Expiration: 12/31/17 OFFERING DATA TrancheAuthorizedIssuedConsumed U137A10,000,00010,000,0006,688,658 U137B10,000,0002,250,000 - U137C30,000,000 - - Follow-on10,000,000 - - (each) SECONDARY MARKET DATA % of Issued TrancheBidAsk URLs _ U137A$0.625$0.630 28% U137B$0.750$0.750 0% U137C - - - Follow-on - - - (each) 4

5. Licensor / Licensee Benefits Licensor Benefits Efficiently monetize patent portfolios Reduce transaction costs Avoid forced cross licensing Outsource marketing Outsource auditing Outsource enforcement Receive timely reports on licensee usage Flexible rights structure Licensee Benefits Efficiently obtain licenses to patent portfolios at market price Ability to resell unused ULRs to accommodate reduced future needs Fair and level playing field for all prospective licensees Fair and reasonable market determined licensing terms Selection Committee screening and public comment period promote quality offering and rational market pricing Potential amnesty for prior usage 5

6. 6 IPXI ULR vs. Other Monetization Methods Monetization Method Assumptions Estimated Revenues To IP-owner Sale through Broker or Auction* 75% Potential Market Penetration 75% Price Discount 15% Commission 15-20% of Total Licensing Revenues Third-Party Enforcement Program** 75% Potential Market Penetration 57% of Licensing Revenues Paid as Fees $1M to $5M in Legal Expenses Incurred 20-30% of Total Licensing Revenues Self-managed Licensing Program*** 50% Potential Market Penetration $1M to $5M in Legal Expenses Incurred Approximately $500,000 in Internal Costs Allocated to Licensing Program 40-50% of Total Licensing Revenues IPXI ULRs 15% Tranche Pricing Discount 20% of Licensing Revenues Paid to IPXI $100,000 Listing Fee and $5,000 Annual Membership Fee Approximately 68% of Total Licensing Revenues * 25% market discount reflects Purchaser expectations after acquiring the patent; 75% price discount reflects the typical discount necessary to assure sale to a single Purchaser in a limited market; 15% of licensing revenues payable as a fee to the brokerage/auction house facilitating the sale. ** 25% market discount based on expected ability of a specialized third-party enforcer to address the market of potential users of a patented technology; 57% of licensing revenues payable as fee to a third-party enforcer, based on a successful patent enforcement companys financial information; $1M to $5M additional costs consistent with AIPLAs estimate for patent litigation with potential damages of $1M to $25M+. *** 50% market discount based on the expected ability of a patent-owner to address the market of potential users of a patented technology; $1M to $5M litigation costs plus $500,000 of non-attorney costs related to the internal management of licensing or enforcement program has been added for this model.

7. IP Strategy Economics: IPXI vs. Other Monetization Methods 7 Monetization Method Revenue FactorsCost Factors Income to Sponsor Risk to Sponsor Total Revenue Potential Revenue after Market Discount Revenue after Price Discount Broker Fee/ Commission Additional Expenses Total Income Realized Loss of Patent Ownership Maximum Potential Loss Sale through Broker or IP Auction $42.5M $31.9M $8M$1.2M$0$6.8MYes$0 Third-Party Enforcement $42.5M $31.9M $18.2M$5M$8.7MYes$0 Self-managed Enforcement Program $42.5M $21.3M $0M$5.5M$15.8MNo$5.5M IPXI ULR Contracts $42.5M $8.5M$125,000$33.9MNo$105,000 CONFIDENTIAL

8. Rules Committee Business Conduct Committee Executive Committee IPXI Governance Market Operations Committee Enforcement Committee Selection Committee Board of Directors 8

9. Indicative Timeline and Task Allocation Time Period Task Day 1 Submit formal OS Document Day 2 - 30 IPXI internal vetting Review OS Document for preliminary acceptance or rejection by the Selection Committee Day 30 Preliminary acceptance of OS Document by the Selection Committee and execution of Submission Agreement Days 30 - 90 Initiate pre-marketing activities Preliminary Offering Memorandum and Selection Committee findings available for Exchange Member review and comment Use of external parties to further evaluate, including prior art search and valuation Assess all comments and reports Final Modification of OS Document, followed by its final assessment Day 90 Final decision regarding acceptance or rejection of preliminary Offering Memorandum Commitment fee is due and payable Grant of exclusive license option of relevant IP to Special Purpose Vehicle (Issuer) Days 91 -150 Form Issuer Market Authorized Product (Roadshow) Day 150 Exercise of exclusive license by Issuer Day 151 Initial Offering effective Day 152 Secondary Market 9

10. IPXI Update 26 new members since IPXIs funding announcement in December 2011 (32 in total and growing) Founding Members –5 U.S. University Founding Members –3 U.S. National Laboratory Founding Members –7 U.S. and foreign Corporate Founding Members First working version of the Rulebook approved by the Executive Committee $500 million+ in IP commitments 10

11. IPXI Market Rulebook – Working Edition 1.0 Approved by IPXI Executive Committee Available by request 11

12. IP as an Exchange Traded Unit – Accelerated Innovation Efficient and transparent technology transfer More accurate R&D and intangible asset management decision-making Greater technology access for small/medium enterprises at fair and reasonable prices An alternative for universities and research laboratories Level playing field 12

13. Intellectual Property Exchange International, Inc. Disclaimer: The concepts covered by this presentation and the information included herein are for discussion purposes only and are not intended to be all-inclusive on the topic of IPXI or related parties. Many of the concepts are illustrative only and do not necessarily represent final IPXI functions and processes. Additionally all of the information contained herein is confidential is and the recipient acknowledges that unauthorized disclosure or use of such confidential information, will cause the Company irreparable harm. Therefore recipient shall maintain Confidential Information in strict confidence at all times without the Companys written consent. Gerard J. Pannekoek IPXI Holdings, LLC 10 South LaSalle Street, Suite 2130 Chicago, IL 60603 Phone: +1 (312) 275-2701 gpannekoek@ipxi.com www.ipxi.com