I suspect that depending on the size of the distribution due TPL for the particular license / period in question, that either 5% or 10% of that distribution would be instead given to PTSC until the $1.1M is paid.

For example, if the size threshold is $2M, then it might be that any distribution due TPL of $2M or less, then 5% of that would go to PTSC instead of TPL. For ones over $2M, then it increases to 10%.

That's my take and is written that way to make sure from TPL's perspective that for smaller licenses, they don't lose too much, to protect them from a cash flow perspective.

Just a guess, but that's how I would make sense of it.

Still, ultimately, TPL is CONTINUING to get money for patent lobbying efforts that are NOT part of the original agreements. In the past that has been pretty substantial, and even in the current agreement, it consists of $172K up front, and then $86K per month from July until at least March of 2012 (60 days after the scheduled Markman hearing). In essence, per this agreement, PDS will pay TPL $172K + ($86K x 9 months) which equals $946K. PTSC receives $1.1M in part for agreeing to this.

I don't see that part as much of a win, but they called it a "settlement" not a victory, lol. This also incentives TPL to delay the Markman in the sense that they can continue to get $86K per month for themselves as long at the Markman hasn't occurred, based on the language in the 8-K. Considering these "lobbying efforts" benefit TPL dispropotionately since they represent multiple portfolios, I've NEVER liked or understood why PTSC ever had to pay so much for these efforts. IMO, it is simply bonus money to Leckrone that he's managed to package as some benefit to PTSC so that they can justify it in a 10q. That part is B.S. in my opinion.....BUT....provided PTSC negotiated some TEETH into these new conditions, and they result in MMP allocations of more than $5M for licenses sold to companies like Apple, (and it better MUCH MUCH MORE) then, it will hopefully lead to an elevated PPS, and an exit opportunity from this mess.