Post Manufacturing Insertion Costs Sample Clauses

Post Manufacturing Insertion Costs. The Parties mutually understand ---------------------------------- that in order for the Three-Month Included Packages to be included in the boxes of Products (as set forth in Section 1.4) scheduled to be distributed during the period between the effective date of this Amendment and December 31, 2000 (the "Immediate Distribution Period"), eMachines may have to open previously sealed Product containers. In the event this occurs, eMachines will incur costs to insert the Three-Month Included Packages into the sealed boxes of such Products (the "Post Manufacturing Insertion Costs"). AOL agrees to pay eMachines the Post Manufacturing Insertion Cost per Product, requiring reopening in order to bundle a Three-Month Included Package as set forth in Section 1.4 above, in an amount equal to $1.00 per such Product. AOL shall pay such Post Manufacturing Insertion Cost for the first 400,000 Products requiring such Post Manufacturing Insertion Costs during the Immediate Distribution Period. In the event that eMachines will incur Post Manufacturing Insertion Costs for any Product after the first 400,000 Products, eMachines shall provide written notice to AOL prior to its incurring any further Post Manufacturing Insertion Costs, and AOL shall have the discretion to choose to allow those Products to be distributed without including the Three-Month Included Package. AOL shall notify eMachines in writing of its choice within two (2) business days of its receipt of eMachines' written notice. Further, AOL shall not pay Post Manufacturing Insertion Costs for any eMachines Products that are distributed after the Immediate Distribution Period. Notwithstanding the above, AOL shall have the right upon two (2) business days prior written notice to stop eMachines from including the Three-Month Included Packages in the Product boxes as set forth in Section 1.4; provided, that (a) AOL shall be responsible for disposing of or removing the remaining Three-Month Included Packages from the DC; and (b) AOL shall pay to eMachines the Post Manufacturing Insertion Costs with respect to Products which include the Three-Month Included Packages in the box up to and including the date of termination pursuant to this sentence.
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Related to Post Manufacturing Insertion Costs

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