If my recollection is correct, according to the agreements with TPL & PTSC, TPL gets an advance from PDS each quarter that is 1/8th of the working capital fund for their work in securing MMP licenses. For example, if the working capital fund had $2M in it, TPL would get an advance of $250K for the quarter.

They also get 15% of the total license revenue brought in MINUS whatever advance they got at the beginning of the quarter, so for this latest quarter, they would have received 15% of $7.441M, or $1.116M MINUS whatever advance they received at the beginning of the quarter.

Going forward per the revised agreed amounts, additionally, they get a stipend of $67K per month for what is essentailly "patent" related lobbying work.

Then, they also turn around and bill PDS for all of the third party costs they incur.

My questions are as follows:

1. With respect to licensing efforts, are there "efforts" that TPL turns around and farms out to third parties, that in reality, they should be doing in house? If so, this would essentially be "double billing" PDS, though I don't think there's anything in the agreement that would prevent it.
2. With respect to third party costs, are there efforts that these third parties put forth with clients who license multiple portfolios, that the corresponding non-MMP related costs are instead being charged to PDS as MMP related expenses?
3. How does PTSC "audit" these charges to ascertain their accuracy / veracity?
4. Are the PTSC / TPL dispute costs being charged to PDS? or is each entity bearing its own expenses?
5. When you consider that last quarter, PDS' operational costs were $4.298M of which presumably $1.116M went to TPL for licensing, that leaves $3.182M in "third party" fees. I'm not sure what is considered the "standard rate" for a third party lawyer, but suppose it's $700/hr. If my math is right, that means, TPL incurred essentially 4546 hours last quarter in legal fees. Considering there are 167 "man hours" in a month, there is 501 working hours in a quarter. 4546 hours worth of legal fees means there were essentially 9 very high paid people working full time for the entire quarter for TPL on behalf of the MMP. Does that sound realistic for the efforts we're aware of through the PACERS?
6. Is $700/hr a realistic average hourly rate for this type of work? Higher, Lower?

Any legal eagles out there that can provide enlightenment on these topics would be appreciated.