Pursuant to the Master Agreement, PDS has committed to pay a quarterly amount ranging between $500,000 and $1,000,000 (based upon a percentage of the working capital fund balance of PDS) for supporting efforts to secure licensing agreements by TPL on behalf of PDS. During the fiscal years ended May 31, 2011 and 2010, PDS paid $2,500,000 and $1,500,000, respectively, to TPL pursuant to this commitment. This expense is recorded in the accompanying statements of operations presented below.
PDS reimburses TPL for payment of all legal and third-party expert fees and other related third-party costs and expenses, and certain internally generated costs as approved on August 17, 2009 and more fully described below. During the fiscal years ended May 31, 2011 and 2010, PDS expensed $6,833,708 and $3,684,154, respectively, to TPL pursuant to the agreement. This expense is recorded in the accompanying statements of operations presented below.
