LEGAL SERVICES FEE
AGREEMENT
This Legal Services Fee Agreement (as amended
from time to time, this "Agreement") is made and entered into this
14 th
day of April, 2006, by and between
Forgent Networks, Inc. (the "Client") and Hagans, Bobb &
Burdine, P.C. and Bracewell & Giuliani, L.L.P.(each
individually a “Law Firm” and collectively the "Law
Firms"). The Law Firms and the Client are sometimes collectively
hereinafter referred to as the "Parties." Any one of the Parties
may be sometimes hereinafter referred to as a "Party."
This Agreement concerns U.S. Patent Nos.
6,181,784, 6,285,746, 6,480,584, and 6,674,960, together with any
continuations, continuations-in-part, divisions and/or foreign
counterparts thereof (collectively, the "Patents"). The Client is
executing this Agreement for the purpose of retaining the Law Firms
to represent it in connection with (i) investigating and asserting
claims, including the filing and prosecution of lawsuits, against
any other person who may be infringing the Patents (any such claim
as to which litigation is filed being hereinafter referred to as a
"Lawsuit"), and (ii) negotiating with infringers to obtain and
secure licensing or sublicensing agreements between the Client and
the infringers (any such licensing or sublicensing agreements
negotiated by the Law Firms referred to herein as a "License
Agreement," and any negotiations for such License Agreements
referred to herein as the "License Negotiations"). The Client is
not engaging the Law Firms to market or commercialize its
technologies to non-infringers. The Client understands and
acknowledges that patent infringement litigation often presents
novel and difficult questions of both law and fact, and the
acceptance of the engagement by the Law Firm in this matter may
preclude engagements by the Law Firms on other matters.
NOW, THEREFORE, for and in consideration of the
mutual agreements set forth in this Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged and confessed by each Party, the Parties
agree as follows:
1.
Patents and Information
Provided by Client .
The Client agrees to use reasonable efforts to provide the Law
Firms with all information and documents in the possession of the
Client or any entities affiliated with the Client reasonably
required in connection with performing Law Firm's duties and
obligations hereunder.
2.
Client's Patent
Rights . The Client
represents and warrants that, to the best of its knowledge after
reasonable investigation, it owns the exclusive right to enforce
all rights with respect to the Patents, including, without
limitation, the exclusive right to bring actions against others for
infringement of the Patents, to license and sublicense the Patents,
and to collect all royalties, license fees, profits or other
revenue or valuable consideration to be paid or exchanged by anyone
else for the right to use the Patents. The Client agrees to timely
pay all maintenance fees due on the Patents.
3.
Contingent Fee Compensation
to Law Firm.
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For services
rendered pursuant hereto, the Client hereby agrees to pay the Law
Firms a contingent fee equal to 30% (15% to each Law Firm) of all
License Proceeds and Litigation Proceeds. For purposes hereof, (i)
"License Proceeds" shall mean any revenues, including but not
limited to, royalties or license fees, money or other valuable
consideration received by the Client through, under or as a result
of any License Agreement and/or any License Negotiations initiated
after the effective date of this Agreement, and (ii) "Litigation
Proceeds" shall mean any recovery realized out of or collected from
or in connection with any Lawsuit, either through settlement,
compromise or judgment, including, but not limited to, compensatory
damages, exemplary damages, attorneys' fees, prejudgment interest,
and post judgment interest (whether through trial or settlement of
any Lawsuit), initiated after the effective date of this
Agreement.
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The Law Firms
will receive their respective percentage interest in the License
Proceeds and Litigation Proceeds as they are paid to the Client or,
at the election of the Client, based upon the present value of the
amount of money that is to be paid to the Client over time. If the
Client chooses to waive any such future payments, it will pay each
Law Firm an amount equal to the Law Firm's interest in those
payments as they otherwise would have been made to the Client. The
Parties agree that (x) the License Proceeds shall include the full
fair market value of any non-monetary proceeds and shall not be
reduced by any cross-license, cross-action, setoff or other payment
by Client, which shall be the sole responsibility of Client, and
(y) the Litigation Proceeds shall include the full fair market
value of any non-monetary relief obtained or received directly by
the Client or any related entity as a proximate result of any
Lawsuit, such as injunctive relief. The Law Firms’ contingent
fees based on License Proceeds and Litigation Proceeds shall
collectively be referred to herein as the "Contingent Attorneys'
Fees."
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The Client
shall pay the Contingent Attorneys' Fees to the Law Firms
quarterly, on or before the 10 th day of each succeeding fiscal quarter. With each
such lump sum payment, the Client shall provide the Law Firms with
a (i) detailed accounting of all License Proceeds and Litigation
Proceeds received by the Client during the immediately preceding
fiscal quarter, and (ii) a calculation of the quarterly lump sum
amount being tendered to the Law Firms. Each Law Firm shall have 30
days following its receipt of each quarterly payment and the
accompanying detail within which to verify and/or object to the
Client's calculation of the quarterly payment amount. If a Law Firm
fails to object to any quarterly calculation within such 30 day
period, the calculation and the payment received shall, absent
fraud by the Client, be deemed to have been accepted by such Law
Firm and shall be final.
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4.
Client Payment of Related
Expenses . During
the term hereof, the Client shall be liable for and shall pay all
Related Expenses. For purposes hereof, "Related Expenses" shall
mean any reasonable expenses incurred by the Client or by the Law
Firms on the Client's behalf in connection with each Law Firm's
performance of its duties and responsibilities hereunder, including
but not limited to, travel expenses, long distance calls,
investigation fees, consultant fees, expert and witness fees,
charts, photographs, deposition fees and costs, court costs,
photocopying and other document reproduction costs, postage
charges, fax charges, on-line computer research. The Parties shall
advise each other in advance of incurring Related Expenses that
will exceed $5,000, and will provide each other with an updated
list of Related Expenses incurred, received or paid by such Party
on a monthly basis. It is anticipated that some Related Expenses
will be paid by Law Firms and then billed to Client while other
Related Expenses will be forwarded to Client for payment directly
to the third party. Notwithstanding the foregoing, the Related
Expenses shall be reimbursed to the Client out of any License
Proceeds or Litigation Proceeds up to, but not to exceed, 20% of
any such License Proceeds or Litigation Proceeds recovered from any
person(s) at any one time. For example, if License Proceeds or
Litigation Proceeds are recovered from a License Negotiation or any
Lawsuit from any person, then up to 20% of such total proceeds will
be paid to the Client as reimbursement for the Related Expenses
incurred, and the remainder of the License Proceeds or Litigation
Proceeds will be distributed to the Law Firms and the Client in
accordance with the provisions of Paragraph 3(a) above. In the
event that the total amount of the License Proceeds or Litigation
Proceeds recovered with respect to a particular License Negotiation
or Lawsuit are insufficient to reimburse the Client fully for the
Related Expenses, the Client agrees that the Client shall bear the
unreimbursed portion of the Related Expenses and that the Law Firms
shall not be liable for any of the Related Expenses not
reimbursed.
5.
Court Award of Attorneys
Fees or Costs .
Where reasonably appropriate under the circumstances in any
Lawsuit, the Law Firms shall apply to the Court for such amount of
compensation, costs, and liti
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