S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T .

B U I L D I N G D O M I N A N T I P S T R AT E G I E S

MDB CAPITAL INTELLECTUAL PROPERTY DEVELOPMENT SERVICES

The IP Investment Bank

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IP Development Servcies (“IPDS”) Mission

Build strategically positioned IP portfolios that protect competitive advantage and create licensing revenue streams

Product Leadership Sustain margin or volumes by protecting critical feature sets

Innovation Protection Extract value from research investments, position future products

Partnership Enabling Leverage technology expertise into one or more market verticals

IP Licensing Generate revenue and protect market ecosystem

IP Asset Sales Divest non-strategic IP separate from the business

Market Signaling Grow portfolios to indicate innovation activity

Exit Opportunities Entice strategic buyers with well positioned IP

Strategic IP Portfolios Provide Several Benefits

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Case Study: Consumer Electronics

TiVo Incorporated (NASDAQ: TIVO) • IP-based digital television recording

innovator was unable to prevent fast followers from copying

• IPO in 1999 with only 1 patent• 4.36 million subscribers in January 2006;

2.3 million by January 2012

Universal Display Corp (NASDAQ: PANL)• IP-based OLED innovator licenses its

innovations to players such as Samsung, LG, and Konica Minolta

• IPO in 1996 with 6 patents; 18 patents within a year; 162 patents today

• Sales of $11.9 million in 2006; $61.2 million in 2011

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Characteristics of Dominant IP Portfolios

Foundational

Sufficiently Large

Rapidly Scalable

Never Ending

Integrate IP and business strategy development

Prevent competitors from designing around small portfolios

Strike quickly while technology is truly disruptive

Capture new innovation continuously

A strategy for developing a dominant IP portfolio can grow a small business with disruptive technology into a $1 billion enterprise

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Fully Integrated Service Offering

Public Venture BankingPre-IPO Financings

IPOsFollow-On Financings

IP Development ServicesInvention DiscoveryIP Strategy Design

Patent Filing Execution

MDB Capital Group

Capital MarketsResearch

Equity Sales & TradingPost-Financing Marketing

MDB Capital is Wall Street’s only IP-focused investment bank• 15 years of experience launching technology companies with strong IP portfolios• Many clients have achieved market valuations of $1 billion or more

IPDS leverages MDB’s technology banking experience to provide a fully-integrated service• MDB’s banking heritage gives IPDS unique insight into aligning IP and business strategies• IPDS services are available to MDB banking and non-banking clients alike

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Current Disjointed Patent Development Process

Inventors have expertise in engineering, but may be siloed off from the rest of the company

Managers have market expertise, but may be distracted by managing day-to-day operations

IP counsel has patent expertise, but as a 3rd party may be removed from business goals and engineering realities

IP development requires cooperation from market, engineering, and patent experts, who may not work together well

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Our dedicated engineering team enables rapid scaling of patent application filing

Our investment banking background keeps business strategy at the forefront

PatentVest,® our proprietary database, provides unique insights into IP landscapes

Integrated IPDS Process

Organizations can optimize their ability to innovate by integrating teams and prioritizing intellectual property development

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Full-Spectrum Strategic IP Development

MDB audit team interviews both internal and external stakeholders

Develop inventory of existing inventions and understand technological differentiators

Inform strategy via additional analysis and IP landscaping using MDB’s proprietary tools

Management reviews each invention for prioritization on business objectives

Develop framework for IP evaluation on technical and competitive perspectives

Finalize IP strategy and innovation plan with inventors and management

Draft patent applications with input from inventors, management & attorneys

Refine IP strategy continuously to generate new inventions and support business needs

Protect against commoditization and copying by fast followers

Discover Design Execute

IPDS combines front-end expertise in developing strategic IP portfolios with back-end infrastructure to execute filings

9S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T .

MDB’s Proprietary PatentVest® Database

PatentVest® develops insightful IP landscapes to target high-ROI innovation• Measures, scores, and ranks US patents by company and portfolio• Parses data on over 4,000 public and private companies• Contains >4 million US patent grants, and >2 million US patent applications• Staffed by 10 highly-qualified technicians engineers; 75,000+ man-hours invested

Company Reports! Patent Search! Patent Filings!

Discover ExecuteDesign

Company Reports Patent Search Patent Filings

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0

20

40

60

80

100

120

140

160

180

Grants Apps Grants Apps Grants Apps Grants Apps Grants Apps Grants Apps Grants Apps Grants Apps Grants Apps Grants Apps

Modularity Onboard Electronics & Software

Common DC Bus Intelligent Management Design & Algorithms

Single Point of Grid Connection

Simultaneous and Dynamic Support of

Varied Load types

Electronics Bridge Topologies and Control

Algorithms

Universal Auto Tuning and Adjustment or Self-Configuartion Schemes

DC Bus Control (could include PIDE ramp

control loops)

Remote or Pre-Deployment or Pre-

Commissioning Configuration

Power and Energy Control Technologies

Next Tech Dyna Power Xantrex (acquired by Group Schneider) SMAA123 Systems Active Power Satcon EnersysCranfield University (UK) Axion Power International Ingeteam VarentecDanotek Validus DC Power (acquired by ABB) Green Charge Networks (part of Prosser Group)

PatentVest® Illuminates an Industry’s IP Landscape

Discover ExecuteDesign

Energy Grid Storage Patent Filings by Technology Area

Case Study: Client needed to understand energy grid storage IP landscape

Many inventions in these areas - limited whitespace Ample whitespace in these areas

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IPDS Core Design Principles

IPDS leverages MDB Capital banking expertise to design a strategy that maximizes return on IP investment

ExecuteDesignDiscover

Strengthen

Optimize

Expand

Prioritize

Align

Focus on interlocking and value driving portfolios over individual patents

Provide best practice architecture solutions for quality, cost, and speed

Generate new innovation through detailed review with company experts

Create a framework and methodology for new invention assessment

Collaborate with all stakeholders to develop high-quality solutions

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• IPDS’s dedicated engineering team extends clients’ core innovation capabilities and rapidly scales invention disclosure drafting

Execute IP Filings with Maximum Efficiency

• IPDS integrates with TeamPatent®, an intelligent patent drafting software application– Secure online collaboration workspace with patent-specific word processor and validation system

DesignDiscover Execute

13S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T .

A turnkey solution for strategic IP portfolios

Establish process to analyze and categorize IP in technical and competitive axes

Act as extension of company resources to eliminating con-flicts and bottlenecks

Dedicated engineers leverage TeamPatent to streamline and scale the patent filing process

Discover Design Execute

IPDS is the only service that combines investment banking expertise with a dedicated team of patent drafting engineers

The IPDS process creates dominant IP portfolios.

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IP Development Services Leadership

Erin-Michael Gill, Managing Director and Chief IP Officer for MDB Capital. Mr. Gill is a former Obama Administration official responsible for development and implementation of new strategic plan for the USPTO, a 10,000 person, $2B, fee-funded, performance-based federal agency. Focus included operational improvement, sustainable funding, global IP policy leadership, and IT modernization. Mr. Gill previously held IP and product management roles with DuPont and IP leadership positions for venture-backed IT companies in the US, Canada, and India. Mr. Gill began his IP career as a U.S. patent examiner while a graduate student in applied physics at the Johns Hopkins University. He has a B.S., Astronomy and a B.A., Physics from Benedictine College.

Adam Holiber, Managing Director and Head of Business Development. Mr. Holiber came to MDB from Intellectual Ventures where he was responsible for raising fund capital of $5B for IP focused investments and subsequently worked as a licensing executive in their multi-faceted and innovative licensing organization. Mr. Holiber is a veteran of Wall Street with over 25 years of investment analysis, institutional sales, and portfolio management experience. Mr. Holiber graduated form Cornell University with a B.A. in Physics and subsequently earned an MBA in Finance from UCLA’s Anderson School of Management. His early career involved service as a U.S. Air Force Captain where he worked on development of technical integration standards for the Space Shuttle program. He is a Chartered Financial Analyst.

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Adam HoliberDirector of Business Development, IPDS

Oscar ChowProject Supervisor

Ramon EyzaguirreIntellectual Property Analyst

Alejandro MarinIntellectual Property Analyst

Ivan MonteroIntellectual Property Analyst

Yessica MoralesIntellectual Property Analyst

Javier PenalbaIntellectual Property Analyst

Veralia SanchezIntellectual Property Analyst

IP Development Services Team

Erin-Michael GillChief Intellectual Property Officer

Jose AlgabaProject Supervisor

Alenka BendanaIntellectual Property Analyst

Jacqueline BermudezIntellectual Property Analyst

Alejandro BorgeIntellectual Property Analyst

Marcos CajinaIntellectual Property Analyst

Alejandro DelgadilloIntellectual Property Analyst

Laura EspinozaIntellectual Property Analyst

16S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T .S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T .

Headquarters

401 Wilshire Boulevard

Suite 1020

Santa Monica, CA 90401

310.526.5000

New York

1350 Avenue of the Americas

2nd Floor

New York, NY 10019

310.526.5000

Managua

Embajada de Mexico,

una cuadra arriba,

a la esquina, casa #100

Managua, Nicaragua

310.526.5000

The IP Investment Bank

Member FINRA/SIPC

S E E I N G V A L U E O T H E R S D O N O T . C R E A T I N G V A L U E O T H E R S C A N N O T .