Common use of Hold Clause in Contracts

Hold. Iomega may at any time direct Venture to hold the Excess Components in inventory to be used to fulfill future Purchase Orders. If Iomega does so, beginning three (3) months after the last date on which the Excess Components would have been used had Iomega submitted Purchase Orders in accordance with this Agreement for which those Excess Components would have been used to fulfill, Iomega shall pay an inventory carrying charge determined by applying an annual rate equal to LIBOR plus [**]% to the total value of the Excess Components being held by Venture. For purposes of the foregoing sentence, the total value of the authorized Excess Components shall be the monthly averaged cost of materials of such components. Additionally, the applicable LIBOR rate shall be that rate in effect on the first business day of each month in which the provisions of this subsection apply. Venture will invoice Iomega on a monthly basis for any amounts due, and Iomega shall pay such amounts within [**] days after receipt of invoice. Venture shall use commercially reasonable efforts to use the Excess Components to fulfill future Purchase Orders issued by Iomega. Venture shall not in any event be obliged to hold any Excess Components for more than a total of nine (9) months and if any Excess Component remain unused after this period, Iomega shall at Venture's request purchase the Excess Components at a price equal to that paid by Venture to the supplier of such Excess Components (without prejudice to Iomega's obligation to pay the inventory carrying charge as aforesaid) in which event Iomega shall own and have the right to control the disposition of such Excess Components.

Hold. Iomega may at any time direct Venture to hold the Excess Long Lead Time Components in inventory to be used to fulfill future Purchase Orders. If Iomega does so, beginning three (3) months after the last date on which the Excess Authorized Long Lead Time Components would have been used had Iomega submitted Purchase Orders in accordance with this Agreement for which those Excess Authorized Long Lead Time Components would have been used to fulfill, Iomega shall pay an inventory carrying charge determined by applying an annual rate equal to LIBOR plus [**]% to the total value of the Excess Authorized Long Lead Time Components being held by Venture. For purposes of the foregoing sentence, the total value of the authorized Excess Authorized Long Lead Time Components shall be the monthly averaged cost of materials of such components. Additionally, the applicable LIBOR rate shall be that rate in effect on the first business day of each month in which the provisions of this subsection apply. Venture will invoice Iomega on a monthly basis for any amounts due, and Iomega shall pay such amounts within [**] days after receipt of invoice. Venture shall use commercially reasonable efforts to use the Excess Authorized Long Lead Time Components to fulfill future Purchase Orders issued by Iomega. Venture shall not in any event be obliged to hold any Excess Authorized Long Lead Time Components for more than a total of nine (9) months and if any Excess Authorized Long Lead Time Component remain unused after this period, Iomega shall at Venture's request purchase the Excess authorized Long Lead Time Components at a price equal to that paid by Venture to the supplier of such Excess Authorized Long Lead Time Components (without prejudice to Iomega's obligation to pay the inventory carrying charge as aforesaid) in which event Iomega shall own and have the right to control the disposition of such Excess Long Lead Time Components.