Allocation of Damages. (i) Subject to Section 5(g)(ii) of this Exhibit C, any recovery, damages, or settlement derived from the Defensive Patent Assertion will be pooled and then applied first in satisfaction of any costs and expenses relating to the Defensive Patent Assertion, including by way of the Defending Member recovering amounts reimbursed to Owner Member under Section 5(b) of this Exhibit C, and amounts incurred by the Defending Member under Section 5(f) of this Exhibit C. Any remaining amounts will be provided to the Owner Member. (ii) Notwithstanding Section 5(g)(i) of this Exhibit C, if the arrangement entered into by the Owner Member, Other Member and COPA (if applicable) under Section 4 of this Exhibit C results in COPA being awarded damages in connection with the Defensive Patent Assertion, such amounts will not be paid to the Owner Member. Instead, such amounts will be retained by COPA and used as working capital for COPA.
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Sources: Membership Agreement, Membership Agreement