Common use of Inventory Transfer Clause in Contracts

Inventory Transfer. Seller agrees to buy, from time to time, Buyer's on-hand inventory that is in excess of Buyer's own production requirements and is needed for Seller's production. Seller also agrees to make inventory in excess of Seller's production requirements available for sale to the Buyer, to any of Buyer's Affiliates or Authorized Agents or anyone else designated by Buyer. Seller's obligation to sell such inventory to any Buyer's Authorized Agent or to anyone else designated by Buyer, is subject to Seller's determining such entities' credit worthiness is acceptable to Seller. Transfer quantities and payment terms will be mutually agreed on a case-by-case basis. Prices shall be [*]. -------------------------------------------------------------------------------- Iomega WS, Supplier RM Rev. P, July 30, 1997 -- -- Page 4 of 26 --------------------------------------------------------------------------------