PURCHASE COMMITMENT VOLUME Clause Samples
The PURCHASE COMMITMENT VOLUME clause defines the minimum quantity of goods or services that a buyer is obligated to purchase from a seller over a specified period. Typically, this clause outlines the exact volume or a formula for calculating it, and may include provisions for adjusting the commitment based on market conditions or mutual agreement. Its core practical function is to provide certainty and predictability for both parties regarding sales volumes, helping the seller plan production and inventory while ensuring the buyer secures supply.
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PURCHASE COMMITMENT VOLUME. The Buyer commits to purchase volume of [*] provided however, the production capability of the Seller to start shipments at below stated week of each frequency band at following table defined estimated level. The customer demand levels will be given in the bi-weekly sent Rolling Forecast and the agreed committed maximum capacity may be reviewed in the monthly management meetings and will be in alignment relative to the Rolling Forecast and the general business outlook. The minimum order commitment takes into account the number of units previously ordered by Nokia under the Nokia Agreement. For example, if on the date hereof, Nokia has already ordered from the Buyer under the Nokia Agreement [*] the minimum number of additional units (18/38 GHZ and 23/26 GHZ units combined) that the Buyer must order hereunder will be an [*]. To the extent that the Buyer fails to order such minimum amount, the Seller agrees that the only liability that the Buyer shall have to the Seller is assignment of the contractual claim that the Buyer has against Nokia under the Nokia Agreement for failure to procure the requisite minimum orders thereunder. The units manufactured for the rate demonstration will be shippable products according to the product specification. The same procedure will take place always when taking a new frequency product to the volume production. The committed volume is divided to different frequency bands as follows [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. I) 18/38 Ghz [*] II) 23/26 Ghz [*] Minimum order quantity / frequency band is [*] and if the total order volume of I) or II) exceeds the above mentioned amount then the other will diminish accordingly and the total commitment will stay as agreed [*]. As indicated above, [*] takes into account [*]. -------------------------------------------------------------------------------- [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. SPECIFICATIONS [NOKIA LOGO]