Summary of Scenarios Sample Clauses

Summary of Scenarios. Scenario Units Ordered by RED in First Year Final Cost to RED Incomplete Launch Mass Production Volume Sales not surpassed RED notifies CloudMinds to cease all future NRE expenditure and pays Actual NRE Cost to date based on RED approvals from the Monthly NRE Review. No Gross Margin is owed on any units not ordered, but RED may owe CloudMinds for Long Lead-time Components if within three (3) months of initiating Mass Production Volume Sales. Low Order Volume Non-Cancelable Orders or less RED pays CloudMinds a combination of Gross Margin on units and Supplemental NRE that is pro-rated based on the shortfall from Non-Cancelable Orders quantity. High Order Volume Non-Cancelable Orders and greater RED only pays Gross Margin on units ordered.
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Related to Summary of Scenarios

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