milestone payments

Anyone with a better financial brain than me might want to have a stab at explaining how this will be sorted out.

When EDF and REH signed their agreement, EDF had to give lots of money to REH (in return for shares) at particular milestones. Now that CWE has taken on all of REH's rights and obligations in relation to EDF, I assume that those milestone payments will still be made, but to CWE.

In a nutshell, I think it means CWE will receive about $4 million dollars by the time CETO III is proven.

** MILESTONE 3: CETO III prototype unit has been manufactured and is ready to ship ex works. £500,000

** MILESTONE 4: One CETO III unit has been installed and connected to a high pressure flexible hose from the CETO III unit outlet to an adjacent support vessel. £750,000

** MILESTONE 5: 45 days of performance data collection has been completed in respect of the CETO III. £750,000

Here's the link if anyone wants to offer an opinion on how it will be worked out.


http://www.reh-plc.com/news.asp?article=304&offset=50