Common use of PURCHASE RIGHTS AND COMMITMENTS Clause in Contracts

PURCHASE RIGHTS AND COMMITMENTS. 4.01 Subject to the terms and conditions of this Agreement, Seller agrees to sell and Buyer agrees to buy Products in accordance with the pricing and benefits set forth in Exhibit 2 of this Agreement. 4.02 Buyer agrees to place Purchase Orders for 1,000 RPSs to be delivered by December 31, 2000. This "Initial Purchase Commitment" is Buyer's sole commitment with respect to purchasing Products from Seller during the Term. Concurrent with execution of this Agreement, Buyer will issue a Purchase Order for 170 RPSs to be delivered before June 30, 2000, which RPSs shall be counted towards the Initial Purchase Commitment. Buyer will issue confirming Purchase Orders with specific delivery information such as Ship Date and location. An additional 750 RPSs of the Initial Purchase Commitment are to be delivered by December 31, 2000 pursuant to Purchase Orders issued by Buyer. Buyer may apply purchases of any of Seller's 38Ghz products to the Initial Purchase Commitment. If prices for Seller's future 38Ghz products are greater than the prices set forth in this Agreement, the Initial Purchase Commitment shall be measured by total purchase price not by the number of units.