Joint Appendix (Part 1)

Case 2:10-cv-02225-JAK -JC Document 172-1#:2776Filed 01/11/12 Page 3 of 47 Page ID12345678910111213141516171819202122232425262728dismissal of all claims in the suit.” A true and correct copy of Mr. Teran’s email datedOctober 27, 2010 reflecting the above is attached hereto as “Exhibit D.”8. As recently as August 21, 2011, Defendants made a written demand tosettle this action in exchange for a lump sum payment from Plaintiff to Defendants for$200,000 in addition to an unrestricted and royalty-free license for Defendants to usePlaintiff’s patent. Defendants’ counsel reasoned in the same letter that:Therefore, over one year into this lawsuit, your client haslittle to no likelihood of a successful outcome at trial. Instead,the Court’s claim construction and summary judgment rulinghave positioned Defendants to not only prove noninfringement,but also frivolousness to expose your client totreble damages and an award for Defendants’ attorney fees.Defendants’ attorney fees will exceed $320,000 to take thiscase to trial.Your client is in a hole that is getting deeper every day.Accordingly, now is a most opportune time for your client tosettle this case and limit his exposure to a very bad result.Defendants further conditioned their settlement demand on Plaintiff paying Defendantsthe full $200,000 as a lump sum within ten days of execution of a settlement agreement.A true and correct copy of Mr. Teran’s letter reflecting the above dated August 21, 2011is attached hereto as “Exhibit E.”9. Even more recently, on November 28, 2011, when all counsel met andconferred after the final pretrial conference in this case [in the attorney work room/loungeof the Courthouse], Defendants counsel told myself and Mr. Handal that “Plaintiff shouldhave accepted $20,000 from Defendants when they offered it to him at the beginning ofthis case.”I was perplexed because I never recalled any such offer being made.Moreover, since I would have been bound to convey any such offer to my client, I wouldhave remembered doing so, as it is my routine and regular practice to immediatelyforward on any settlement offers to my clients as soon as they are made.2DUSHANE DECL. RE PLAINTIFF’S MOTIONS FOR ENCHANCED DAMAGES ANDATTORNEY FEES PURSUANT TO 35 U.S.C. §§ 284 AND 285(CASE NO: 2:10-cv-02225-JAK-JCX)-A282-