Common use of Fixed Cost Clause in Contracts

Fixed Cost. Phase II and III NRE – Costs to Company (Labor) $ 567,152 Development (DFM/DFA) Support Expenses $ 120,000 Total $ 687,152 Anticipated/Budgetary Travel Related Expenses** $ 39,200 4.2.1 Lead Time is assumed to be 9 months upon receipt of order and required deposit. Some variations in schedules may apply due to other requirements and / or timing and availability of M&M’s resources to complete the required tasks 4.2.2 To complete and verify the DFM/DFA process, upto ten DTS systems will be manufactured and assembled in stages, and atleast five will be delivered and utilized for further testing, integration and deployment purposes. 4.2.3 Travel by NuGen personnel to and fro Washington, DC, to India will be billed at actuals and are to be reimbursed to ▇▇▇▇▇ net US Dollars 4.2.4 To keep travel expenses low, it is assumed that ▇▇▇▇▇ will have access to M&M’s guest house facilities and any local road travel will be provided and picked up by M&M. All other travel related expenses to and from M&M’s facilities, external of the Mumbai / Nasik area, will be the responsibility of ▇▇▇▇▇ unless specifically requested and approved by M&M ahead of time.