MAXD Update From CEO - Seite 3

German Court Action

On December 7, 2016 an offer was made to settle by Google and Netflix in the final hours of the day prior to the hearing in Germany, concerning the entire global patent portfolio. The VLL steering committee decided the offer required further consideration and significantly more detail around the terms and suspended the negotiations so not to jeopardize the value of the overall portfolio (specifically including the US).

On December 8, 2016 both parties presented arguments in the Nullity proceedings in Munich, Germany. The court will issue its written ruling early 2017. The VLL steering committee intends to continue negotiations with all parties concurrently. Further details will be provided in the very near future.

American Arbitration Association Proceeding

In August 2015, MAXD initiated an arbitration proceeding before the American Arbitration Association to confirm the rights it was granted by VSL pursuant under the Licensing Agreement and to prevent VSL, Nash and related parties from interfering with those rights. On August 25, 2015, an Emergency Arbitrator issued an Emergency Preliminary Injunction Arbitration Award in favor of MAXD prohibiting VSL from 1) disavowing the validity of the Contract (with MAXD); 2) altering any corporate or other entities formed, owned or controlled by VSL that has any connection with the Contract; or 3) licensing, selling, assigning or transferring, any of the technology, patents, or intellectual property, connected to the Contract in any manner, and 4) is required to cooperate with the pending ODT enforcement litigation and fulfill its contractual obligations.

MAXD filed a petition in California Superior Court seeking confirmation of the Emergency Arbitration Award. On Friday December 4, 2015 a California Superior Court ruled in MAXD's favor and confirmed the Emergency Arbitration Award against VSL. VSL attempted to overturn the decision by the California Superior Court by seeking a Writ of Appeal from the California Court of Appeals on December 10, 2015. The Court of Appeals denied VSL's appeal on December 16, 2015.

Since MAXD and Vedanti are now co-owners of the portfolio, we've withdrawn our claims against Vedanti and intend to soon terminate the AAA proceeding in its entirety.

The Legal Team

MAXD's attorneys in the United States agreed to handle the US lawsuits against Google on a contingency fee, reflecting their belief in the strength of MAXD's patent infringement claims. Together, we feel justice will be served, and MAXD and our Shareholders will prevail! Legal advisors of MAXD in the United States: Buether Joe & Carpenter, LLC www.bjciplaw.com