TiVo 2011 Annual Report Download - page 131

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Patent Challenge with respect to any AT&T Licensed Patents. If either TiVo or any of its Subsidiaries breaches this Section 3.7(b),
AT&T shall notify TiVo in writing of such breach and TiVo shall have [*] to cure the breach (if possible). If TiVo fails to cure the
breach by the end of this period, AT&T shall be entitled to terminate the license granted in Section 3.2 with respect to the Patent(s)
subject to the Patent Challenge, and pursue all other remedies available at law or equity. Notwithstanding the foregoing, TiVo will file
a notice of withdrawal from the pending reexamination of U.S. Patent No. 6,983,478.
(c) The Parties agree that any breach of Sections 3.7(a) or 3.7(b) will cause irreparable harm to the non-breaching
Party. Accordingly, each Party hereby consents to the entry of temporary, preliminary and permanent injunctive relief to remedy any
breach of either Sections 3.7(a) or 3.7(b).
Section 4. PAYMENT
4.1. Payment to TiVo . AT&T shall pay TiVo a non-refundable payment in the total amount of Two Hundred and Fifteen
Million Dollars ($215,000,000.00) (“Fee ”), with payment being made in installments according to the following payment schedule:
Payment No. Due Date Amount of Payment
1 On the first business day after the
Effective Date $51,000,000.00 (“ Initial Payment Obligation” or “ Initial
Payment”)
2, 3, 4, and 5 Within thirty (30) days after the last
day of each calendar quarter in 2012 $5,000,000 per quarter
6, 7, 8, and 9 Within thirty (30) days after the last
day of each calendar quarter in 2013 $6,545,454.55 per quarter
10, 11, 12, and 13 Within thirty (30) days after the last
day of each calendar quarter in 2014
$6,545,454.55 per quarter
14, 15, 16, and 17 Within thirty (30) days after the last
day of each calendar quarter in 2015
$6,545,454.55 per quarter
18, 19, 20, and 21 Within thirty (30) days after the last
day of each calendar quarter in 2016
$6,545,454.55 per quarter
22, 23, 24, and 25 Within thirty (30) days after the last
day of each calendar quarter in 2017
$6,545,454.55 per quarter
26 and 27 Due within thirty (30) days after the
last day of the first two calendar
quarters in 2018
$6,545,454.55 per quarter
Total $215,000,000
Each of quarterly payments set forth in 2 – 27 of the above table are hereinafter referred to as an “Installment Payment ” and
collectively as the “Installment Payments ”.
4.2. Additional Monthly DVR Subscriber Fees. If the number of DVR Subscribers on the last day of any month (or partial
month in the case of July 2018) during the Term (each a “Calculation Date”) exceeds the Threshold Amount, then AT&T shall pay
TiVo an amount for that month equal to (a) the number of DVR Subscribers over the Threshold Amount on such Calculation Date up
to the Subscriber Fee Cap as of the Calculation Date, multiplied by (b) $[*] (“Additional Payments”). For example, if the number of
DVR Subscribers as of the Calculation Date for a particular month exceeds the Threshold Amount by 100,000, then AT&T will pay to
TiVo an Additional Payment in the amount of $[*] for that month. AT&T shall report and pay Additional Payments due under this
section quarterly within thirty (30) days after the last day of each calendar quarter during the Term (beginning with the calendar
quarter ending March 31, 2012 and ending with the calendar quarter ending September 30, 2018). For example, if the
[*]Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to
the omitted portions.