I know we've had this exchange before regarding the money TPL/Alliacense receives for their licensing efforts on behalf of the MMP. I know I've questioned whether there are any controls in place that allow for an audit or provide a periodical reporting/justification of those dollars. I believe your response was that you weren't aware of any, which obviously would concern me as I think it does you.

While in the big scheme of things, the dollars paid to Alliacense for licensing vs. those that are split with TPL/PTSC, when you take into account that there are obvious dollars that were spent on outside counsel (which were likely significant) during the preparation for litigation with the J3 and with the T3, it's probably not a HUGE issue with respect to what it ultimately might have taken out of PTSC's pocket. That being said though, that it appears no such audit has taken place, nor based on the reporting methods used, would we ever be privy to any if were to take place, speaks to the lack of transparency PTSC provides with respect to their minimally compliant financial reporting.

Furthermore, that PDS has a management commmitte of 3 people, TWO of which are TPL employees or principles, would lead one to surmise that even if an audit were warranted, it would be difficult for PTSC's concerns to be fairly addressed based on that committee makeup. Additionally, it appears from the master agreement, that disputes of that nature would have to take a longterm approach similar to what Moore outlined that he is facing with respect to arbitration vs direct legal action, so as not to undermine the ongoing licensing activities.

So, while it is typical for busineses to audit their activities, or to be audited by outside companies (ie insurance companies often audit companies they insure to ASSURE that the basis for thier insurance and the risks involved are as agreed and as outlined in their own requirements), it does not APPEAR as though PTSC behaves similarly with respect to its interests in PDS. Hopefully, that's an INCORRECT conclusion and HOPEFULLY, they do regularly audit PDS & Alliacense's efforts, but you know what they say about the word ASS/U/ME.

It would be nice to see a report that this fiduciary responsiblity is being taken seriously.