On December 14, 2011, we contributed $200,000 to PDS following a determination by PDS’ management committee that additional funds were required so that PDS could fund the initial installment of a legal retainer payable to newly engaged IP counsel. In connection with our contribution, TPL forfeited rights to $200,000 of special litigation support payments due it pursuant to the October 6, 2011 settlement agreement. The forfeited right will be treated as an in-kind capital contribution of $200,000.

Let me see if I got this right. We agree to pay TPL 86K per month until 90 days after the Markman. This has been accruing on PDS' books. Then we give PDS another $200K which would have perhaps given PTSC the right to greater than a 50% ownership in PDS....however, Leckrone decides to forfeit his rights to $200,000 of the accrued money owed to him, so it will be treated as an in kind capital contribution. So is PTSC actually giving $400K but not getting a larger percentage of PDS?