<p>The following details the program rates currently available for a SEP license for handsets:*</p>
<table class="rate-table">
<thead>
<tr>
<th></th>
<th class="th-cyan">TECHNOLOGY</th>
<th class="th-dark">RATE</th>
<th class="th-dark">ASP FLOOR</th>
<th class="th-blue">ASP CAP</th>
</tr>
</thead>
<tbody>
<tr>
<td rowspan="3" class="category-cell cell-grey">Cellular</td>
<td class="cell-grey">3G</td>
<td class="cell-grey">0.40%</td>
<td class="cell-grey">US $40.00</td>
<td class="cell-grey">US $100.00</td>
</tr>
<tr>
<td class="cell-grey">4G</td>
<td class="cell-grey">0.50%</td>
<td class="cell-grey">US $50.00</td>
<td class="cell-grey">US $200.00</td>
</tr>
<tr>
<td class="cell-grey">5G</td>
<td class="cell-grey">0.60%</td>
<td class="cell-grey">US $60.00</td>
<td class="cell-grey">US $200.00</td>
</tr>
<tr>
<td rowspan="3" class="category-cell cell-grey">Wi-Fi</td>
<td class="cell-grey">Wi-Fi 5<br><span class="subtext"> (and earlier
generations)</span></td>
<td class="cell-grey" colspan="3">Fixed per unit rate of $0.05</td>
</tr>
<tr>
<td class="cell-grey">Wi-Fi 6</td>
<td class="cell-grey" colspan="3">Fixed per unit rate of $0.10</td>
</tr>
<tr>
<td class="cell-grey">Wi-Fi 7</td>
<td class="cell-grey" colspan="3">Fixed per unit rate of $0.15</td>
</tr>
<tr>
<td class="category-cell cell-grey">Video</td>
<td class="cell-grey">HEVC Decoding</td>
<td c class="cell-grey" colspan="3">Fixed per unit rate of $0.10</td>
</tr>
</tbody>
</table>
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<p><em>* Handset pricing only. The foregoing is for informational purposes only, does not constitute a binding offer, and is subject to additional terms and conditions and execution of a definitive patent license agreement. The HEVC decoding and Wi-Fi rates reflect a discounted royalty rate for handsets when taking a license to those technologies in conjunction with a cellular SEP license.</em></p>
<p>For qualifying handset licensees, additional discounts may apply based on duration of the agreement, product volumes, payment timing and structure (e.g., fixed fee vs running royalty), and other factors.</p>
<p>Cellular and Wi-Fi rates are not cumulative across generations – the royalty rate that would apply would be that related to the most advanced technology present on the device. So, if it is a 4G phone (with 3G backwards capability), the cellular royalty rate that applies is the 4G rate and if it uses Wi-Fi 6 (with backwards capability to Wi-Fi 5), the Wi-Fi royalty rate that applies is the Wi-Fi 6 rate.</p>
<p><strong>Example:</strong> On a $500 smartphone that implements 3G and 4G standards, as well as Wi-Fi 6 and HEVC decoding video technologies, our rate per handset would total $1.20 (i.e., ($200 * 0.50%) + $0.10 + $0.10), subject to any additional discounts that may be available.</p>