for OnQ Clause Samples

for OnQ. (i) In December of each year, COGS is estimated by Aerogen on basis of known variables, including Dance rolling forecast. (ii) Purchase lots are invoiced throughout the year on basis of December estimate, with addition of appropriate supply margin specified per the table above. (iii) Actual COGS for complete year are calculated during annual audit process, and provided to Dance for review. Aerogen issues an invoice or remits payment to balance projected against actual COGS. The Device Proprietary Components will be manufactured under Aerogen’s management and quality control systems as follows: