Common use of Non-Cancelable Orders Clause in Contracts

Non-Cancelable Orders. RED intends to purchase * million units of the Products from CloudMinds. RED acknowledges that CloudMinds’ commitment to Product development, competitive pricing and cost transparency may include costs of R&D (exclusive ID), IPR, Certifications for open market, Materials Purchases and Manufacturing. RED therefore agrees that orders for at least * units in the First Year (“Non-Cancelable Orders”) are necessary to support such development costs. If RED does not meet the Non-Cancelable Orders quantity in the First Year, then the total amount owed by RED for the First Year will include Supplemental NRE payments as described in Section 4.6.3. To be clear, RED is under no binding obligation to purchase any units beyond the agreed Non- Cancellable Orders..