Contract analysis

I. EXECUTIVE SUMMARY Raymond Bautista was deposed on December 3, 2024, at the offices of Lumicore's outside litigation counsel, Hawthorne Vega & Cruz LLP, in Austin, Texas. The deposition lasted approximately six hours and forty-two minutes, including breaks, and produced a transcript of approximately 287 pages. Bautista was examined by Alan Ngo and Wendy Schultz on behalf of Optiwave Semiconductor Corp.; he was defe

1. Receipt of First FairPoint Letter. Bautista confirmed that he personally received FairPoint Licensing Group, LLC's first licensing letter dated January 15, 2023, addressed to him in his capacity as General Counsel of Lumicore Technologies, Inc. He estimated that the letter arrived at Lumicore's Austin headquarters approximately two to three business days after its date. This testimony establishes actual notice of

2. Forwarding to Outside Counsel. Bautista confirmed that he forwarded the January 15, 2023 FairPoint letter to outside counsel at Hawthorne Vega & Cruz LLP — specifically to Kate Rourke — within three business days of its receipt.

3. Receipt of Second FairPoint Letter. Bautista confirmed receipt of FairPoint's second licensing letter dated May 15, 2023, which added U.S. Patent No. 11,402,015 (the "'015 Patent") to the assertion and expanded the scope of accused products to include the LumiLink 800G-DR8.

4. Attendance at April 20, 2023 Licensing Meeting. Bautista confirmed that he attended the in-person licensing meeting held on April 20, 2023, at the HVC offices in Austin, Texas. He attended alongside Kate Rourke, and the OWS/FairPoint side was represented by Angela Reeves (FairPoint) and Rebecca Tanaka (OWS General Counsel). He further confirmed that no counter-offer or alternative licensing proposal was made by Lu

5. No Formal Design-Around Analysis Before LumiEdge 1600G-LR Launch. Bautista admitted that no formal design-around analysis was commissioned before the launch of the LumiEdge 1600G-LR in Q4 2023. This product was launched after both FairPoint licensing letters and after Lumicore's own declination letter of July 10, 2023.

6. Refusal to Disclose Opinion-of-Counsel Letters. When questioned regarding the substance, authorship, scope, and timing of the "competent legal opinions" referenced in Lumicore's July 10, 2023 declination letter, Bautista refused to answer on every occasion, and Rourke instructed the witness not to answer on privilege and work-product grounds. This pattern of refusal was noted on the record for purposes of the pend

II. BACKGROUND AND ROLE A. Professional Background Bautista testified that he holds the title of General Counsel at Lumicore Technologies, Inc. He was hired by Lumicore in 2017, approximately two years after the company's founding in 2015. He reports directly to Thomas "Tom" Kessler, Lumicore's Chief Executive Officer. Bautista described his responsibilities as encompassing all legal affairs for Lumicore, including i

III. RECEIPT AND HANDLING OF FAIRPOINT LICENSING LETTERS A. First FairPoint Letter — January 15, 2023 Bautista was shown Exhibit 3, a copy of the FairPoint Licensing Group, LLC letter dated January 15, 2023, sent by Angela Reeves, Managing Director of FairPoint, to Raymond Bautista at Lumicore's Austin headquarters address. Bautista confirmed that he received this letter. When asked to identify the date on which he f

IV. APRIL 20, 2023 IN-PERSON LICENSING MEETING A. Attendees and Setting Bautista confirmed that an in-person licensing meeting took place on April 20, 2023, at the offices of Hawthorne Vega & Cruz LLP, located at 600 Congress Avenue, Suite 2400, Austin, Texas. The meeting was held in a conference room at HVC's offices. Bautista identified the attendees as follows: OWS / FairPoint: • Angela Reeves, Managing Director,

V. LUMICORE'S JULY 10, 2023 DECLINATION LETTER A. The Letter Itself Bautista was shown Exhibit 6, a copy of Lumicore's letter dated July 10, 2023, sent from Raymond Bautista to Angela Reeves at FairPoint Licensing Group, LLC, formally declining to take a license under the asserted OWS patents. Bautista confirmed that he drafted this letter with input from outside counsel at HVC. He stated that the letter was sent on

VI. AWARENESS OF OWS PATENTS WITHIN LUMICORE A. Pre-FairPoint-Letter Knowledge A central issue in the willful infringement analysis is the extent of Lumicore's knowledge of OWS's patents before the receipt of the January 15, 2023 FairPoint letter. Bautista was examined on this topic at length, and his testimony was carefully qualified. Bautista stated that he was not personally aware of the specific OWS patent number

VII. DESIGN-AROUND ANALYSIS AND LUMILINK / LUMIEDGE PRODUCT LAUNCHES A. No Formal Design-Around Before LumiEdge 1600G-LR Launch One of the most significant admissions obtained during the Bautista deposition concerned the absence of any formal design-around analysis before the launch of the LumiEdge 1600G-LR, Lumicore's most advanced accused product. When asked directly whether Lumicore commissioned a formal design-ar

VIII. LUMICORE'S INTERNAL IP PROCESSES A. Patent Clearance and Freedom-to-Operate Bautista was questioned about Lumicore's general policies and practices concerning patent clearance and freedom-to-operate ("FTO") analyses. His testimony on this topic was extremely limited and evasive. When asked whether Lumicore has a policy or practice of conducting FTO analyses before launching new products, Bautista stated: "We ha

IX. LICENSING HISTORY AND THIRD-PARTY IP A. Lumicore's Licensing-In History Bautista confirmed that Lumicore holds inbound licenses from third parties for certain technology incorporated into its products. However, he refused to identify the licensors, the licensed technology, or the terms of the license agreements, citing confidentiality obligations under those agreements. Rourke also objected on relevance grounds,

X. INVOLVEMENT OF SENIOR MANAGEMENT A. CEO Tom Kessler Bautista confirmed that he briefed Tom Kessler on the FairPoint licensing letters and on the April 20, 2023 in-person licensing meeting. He stated that Kessler was kept informed of developments in the FairPoint licensing matter throughout the period from January 2023 through July 2023 and beyond. Bautista confirmed that Kessler authorized the July 10, 2023 declin

XI. DISCOVERY AND DOCUMENT PRESERVATION A. Litigation Hold Bautista confirmed that Lumicore implemented a litigation hold upon receiving the complaint in this action, which was served on or about May 1, 2024. He stated that the litigation hold was implemented promptly after service and that Lumicore took its preservation obligations seriously. However, when asked whether a litigation hold or any form of document pres

XII. EXHIBITS MARKED DURING DEPOSITION The following exhibits were marked during the deposition of Raymond Bautista on December 3, 2024:

XIII. OBJECTIONS AND PRIVILEGE LOG A. Summary of Privilege Assertions Kate Rourke instructed the witness not to answer on approximately thirty-four (34) occasions throughout the deposition. These instructions not to answer were based on assertions of attorney-client privilege, attorney work-product doctrine, or both. The privilege assertions covered the following subject-matter categories: • Substance, authorship, ti

XIV. KEY TESTIMONY EXCERPTS (PAGE/LINE REFERENCES) Note: Exact page and line references will be added upon receipt and review of the final certified transcript from the court reporter. The preliminary references below are based on the real-time transcript feed viewed during the deposition and notes taken by the examining team. All references are approximate and subject to confirmation. The following excerpts have bee

1. Confirmation of receipt of January 15, 2023 FairPoint letter and forwarding to HVC within three business days. Bautista's testimony on this point establishes actual notice and the promptness of Lumicore's internal escalation to outside counsel. This excerpt will be used to establish the starting date for the willfulness analysis.

2. Statement that no counter-offer was made at the April 20, 2023 licensing meeting. Bautista's unequivocal statement — "We did not make a counter-proposal at that meeting" — demonstrates Lumicore's failure to engage in good-faith licensing negotiations and supports the Read factor analysis.

3. Admission that no formal design-around analysis was commissioned before the LumiEdge 1600G-LR launch. Bautista's statement — "Not a formal study, no" — is the single most damaging admission obtained during the deposition and is central to the willfulness case.

4. Statement that the July 10, 2023 declination letter was authorized by CEO Tom Kessler. This excerpt establishes that the decision to reject the licensing demand was a deliberate corporate decision made at the highest level of management.

5. Reference to "competent legal opinions" followed by refusal to disclose any details. The series of exchanges in which Bautista referenced the declination letter's invocation of "competent legal opinions" but then refused, on instruction of counsel, to provide any details about those opinions, will be used in the pending privilege dispute and at trial on the issue of willfulness.

6. Statement regarding pre-notice awareness of OWS patents: "could not speak to what the engineering team may or may not have been aware of." This carefully worded non-denial leaves open the inference that Lumicore's engineering team had knowledge of the OWS patents before the FairPoint letter, an inference that is supported by Dr. Michaud's deposition testimony and the anticipated testimony of Melissa Chen.

XV. AREAS FOR FOLLOW-UP A. Supplemental Deposition Considerations If the Court grants OWS's pending Motion to Compel and orders Lumicore to produce the opinion-of-counsel letters referenced in the July 10, 2023 declination letter, OWS should promptly seek a supplemental deposition of Bautista. At that supplemental deposition, Bautista should be re-examined on the substance, timing, and scope of the opinions, includin

1. Actual notice established. The FairPoint letters of January 15, 2023 and May 15, 2023, were both received and acknowledged by Bautista. He confirmed that he read the letters in full, forwarded them to outside counsel, and understood that they constituted formal licensing demands based on specific, identified patents. There is no dispute as to actual notice.

2. No meaningful response. Lumicore did not make a counter-offer at the April 20, 2023 licensing meeting and did not propose alternative licensing terms. Lumicore's sole substantive response was the February 28, 2023 letter disputing infringement (the substance of which is shielded by privilege) and the July 10, 2023 declination letter referencing undisclosed "competent legal opinions."

3. Post-notice launch of new infringing product. The LumiEdge 1600G-LR was launched in Q4 2023, after both the January 15, 2023 and May 15, 2023 FairPoint letters and after Lumicore's own July 10, 2023 declination letter. No formal design-around analysis was conducted before this launch. Lumicore introduced a new product into the market with full knowledge of OWS's patent assertions and without taking any documented

4. Concealment of legal basis. Lumicore's refusal to produce or to allow testimony about the "competent legal opinions" that purportedly support its non-infringement position — while simultaneously relying on those opinions as a defense — creates a powerful inference that the opinions may not fully support Lumicore's position or may contain qualifications, caveats, or adverse analyses that Lumicore does not wish to d

XVI. DISTRIBUTION This Deposition Summary is designated as ATTORNEY WORK PRODUCT and is PRIVILEGED AND CONFIDENTIAL. Distribution is limited to the following individuals: Any further distribution requires the prior written approval of Alan Ngo.

XVII. APPENDICES Appendix A: Exhibit List (Full) A complete listing of Deposition Exhibits 1 through 24, including Bates-number ranges for each exhibit, will be populated upon receipt of final exhibit copies from the court reporter. The court reporter has been requested to provide certified copies of all marked exhibits, including any exhibits that were identified but not admitted. Bates numbers will be cross-referen