Note 8   Contingencies and Commitments Publisher Agreements The Company has entered into agreements with publishers wherein the publishers have granted the Company an exclusive right to sell certain reprints of each of the publishers  publications. On January 10, 2012, the Company amended one such agreement with a publisher. The original agreement, dated July 15, 2010, called for fixed royalty payments through December 2015. The agreement was amended replacing fixed royalty payments with percentage of revenue royalty payments beginning on January 1, 2012. The amended agreement specifies minimum annual payment thresholds, however, any shortfall on the minimum annual payment thresholds will be capped at $500,000 per year. The amended agreement also allows the publisher to terminate the existing agreement at any time after June 16, but prior to December 17, 2012. The table below summarizes the royalty payment obligations of the original and amended agreements: Calendar Year Original Agreement Payment Obligation Amended Agreement Payment Obligation 2012 $ 4,500,000 85% of revenue, if $2,500,000 min. annual pymt threshold not met shortfall capped at $500,000 2013 $ 4,800,000 85% of revenue, if $2,666,667 min. annual pymt threshold not met shortfall capped at $500,000 2014 $ 5,200,000 85% of revenue, if $2,888,889 min. annual pymt threshold not met shortfall capped at $500,000 2015 $ 5,600,000 85% of revenue, if $3,111,111 min. annual pymt threshold not met shortfall capped at $500,000 The Company will account for the amendment to the publisher agreement prospectively beginning on January 1, 2012. At December 31, 2011, there was no prepaid royalty and a royalty payable of $1,050,000 relating to the agreement. During the three months and six months ended December 31, 2011 , the Company paid these publishers $1,095,000 and $1,140,000, respectively, and in aggregate, for these rights. The Company records the cost of each of these contracts each reporting period on a straight line basis over the terms of the agreements inc