Common use of Settlement Allocation Clause in Contracts

Settlement Allocation. In allocating such contributions as to each settlement, the contribution of the LUCENT intellectual property and the contribution of the PARADYNE intellectual property, if any, used in such settlement ("LUCENT Apportionment' and PARADYNE Apportionment", respectively) shall be used as follows (a) The LUCENT Apportionment shall be applied against the then maximum liability of LUCENT under Section 11.2(c). (b) The PARADYNE Apportionment shall be accounted for as follows: (i) If the PARADYNE Apportionment is equal to or less than the then applicable Deductible Amount, it shall be fully credited against such Deductible Amount and the remaining amount, if any, shall be the then applicable Deductible Amount for the settlement. (ii) If the PARADYNE Apportionment is greater than the then applicable Deductible Amount, no such Deductible Amount need be paid by PARADYNE to LUCENT and the amount of such PARADYNE Apportionment greater than such Deductible Amount, if any, shall be Editable against the Deductible Amount for each future settlement, at a rate of fifty cents per dollar of the PARADYNE contribution for such future settlement, till such PARADYNE Apportionment is fully accounted for. In no case shall the creditable amount be more than fifty cents per dollar of the Deductible Amount.

Settlement Allocation. In allocating such contributions as to each settlement, the contribution of the LUCENT intellectual property and the contribution of the PARADYNE intellectual property, if any, used in such settlement ("LUCENT Apportionment' " and "PARADYNE Apportionment", respectively) shall be used as follows (a) The LUCENT Apportionment shall be applied against the then maximum liability of LUCENT under Section 11.2(c). (b) The PARADYNE Apportionment shall be accounted for as follows: (i) If the PARADYNE Apportionment is equal to or less than the then applicable Deductible Amount, it shall be fully credited against such Deductible Amount and the remaining amount, if any, shall be the then applicable Deductible Amount for the settlement. (ii) If the PARADYNE Apportionment is greater than the then applicable Deductible Amount, no such Deductible Amount need be paid by PARADYNE to LUCENT and the amount of such PARADYNE Apportionment greater than such Deductible Amount, if any, shall be Editable against the Deductible Amount for each future settlement, at a rate of fifty cents per dollar of the PARADYNE contribution for such future settlement, till such PARADYNE Apportionment is fully accounted for. In no case shall the creditable amount be more than fifty cents per dollar of the Deductible Amount.