January 28, 2013
VIA Fax 886-3-563-2871 and Mail
AU Optronics Corp.
1 Li-Hsn Road 2
Attn: Paul Lee, Sr. Legal Counsel
Dear Mr. Lee:
As you are aware, on October 5, 2012, CopyTele notified AUO Optronics Corp. (AUO) of AUOs
continuing material breaches of the Exclusive License Agreement dated May 27, 2011 (the EPD
Agreement), and the License Agreement dated May 27, 2011 (the Nano Agreement), and
CopyTeles intent to terminate the EPD Agreement and the Nano Agreement.
Since the October 5 notice, AUO has declined numerous requests to meet with CopyTele to
discuss the pendency of EPD Agreement and the Nano Agreement, including the amicable
resolution of all issues in dispute, and the potential cure of AUOs breaches of the agreements.
As a result of AUOs unwillingness to meet with CopyTele, and the continued material breaches of
the EPD Agreement and the Nano Agreement by AUO, effective immediately, CopyTele hereby
terminates the EPD Agreement and the Nano Agreement, in their entireties, including without
limitation any and all rights, licenses, and sublicensing rights to the Licensed Technology and the
Licensed Patents, as defined in the respective agreements. Additionally and in the alternative,
CopyTele hereby demands the rescission of the EPD Agreement and the Nano Agreement.
CopyTele offers to restore the consideration that CopyTele has received under those Agreements
as set off against CopyTeles damages incurred as a result of AUOs conduct.
Robert A. Berman
900 Walt Whitman Road, Melville, NY 11747