where does this 2-4 million dollar a year figure of guaranteed revenues from matthews come from? if the orders are placed as the 8k spells out matthews will be manufacturing 3120 pieces of product for EI on the first production runs. what level of revenue will each item generate to EI? $10 an item, $50 an item, $100 an item, $500 an item, etc...different amounts for the different items...??? matthews assumes 100% of the financial risk. the cost of r&d, the cost of the designs, the cost of tooling, the cost of production and for this EI allows matthews to use the 2 licenses. with the pricing of products still being negotiated between EI and matthews what kind of revenue per product item can EI expect to reap when they assume none of the financial risk?
a. 250 Star Trek Urns (which Product and design have been previously approved);
b. 720 Vatican Observatory Urns;
c. 200 Vatican Observatory bronze memorial pieces; and
d. 2,000 Vatican Observatory caskets.
During each ninety (90) day period of a Contract Year, Matthews agrees to re-purchase from Eternal Image for re-sale and distribution the following Products, subject to a 20% permitted variance in the volume commitments outlined herein:
a. 62 Star Trek Urns (plus an additional 2 units in the fourth quarter);
b. 180 Vatican Observatory Urns;
c. 50 Vatican Observatory bronze memorial pieces; and
d. 500 Vatican Observatory caskets.
The pricing for the Products manufactured and purchased under this Agreement shall be negotiated in good faith by and between the parties at such time as they are respectively designed by Matthews and approved by Eternal Image.
AI
