Consumer Advertising Clause Samples

Consumer Advertising. Each year XXX and WWW shall jointly develop Consumer Advertising. XXX, with the assistance of WWW, shall develop and draft a comprehensive Consumer Advertising plan not later than 60 days prior to the commencement of the calendar year. At its sole expense and consistent with the Consumer Advertising plan, XXX shall itself or with the assistance of one or more third party(ies): (1) develop the Consumer Advertising pieces stated in the Consumer Advertising plan and (2) purchase the required media time and space for the Consumer Advertising stated in the Consumer Advertising plan. Each Consumer Advertising piece shall be shared with WWW and WWW shall provide comments to XXX prior to use by XXX. In support of Consumer Advertising, XXX shall spend, at a minimum, the following amounts on Consumer Advertising provided that WWW has not given notice of termination of this Agreement: a. From the Effective Date through the end of calendar year 2002, fifteen million dollars ($15,000,000). b. For the calendar year 2003, *****. c. For the calendar year 2004, *****. d. For the calendar year 2005, *****. e. For the calendar year 2006, *****. Should this Agreement be renewed for the additional five-year period pursuant to Section VIII(B), the Consumer Advertising to Non-Orthodontic Dentists will be specified in the renewal agreement. Without limiting the generality of the foregoing, XXX specifically agrees that for no calendar year during the term of this Agreement or any renewal thereof, shall the Consumer Advertising spent by XXX be less than ***** of the Minimum Sales Quota for such calendar year.

Consumer Advertising. During each Annual Period, Licensee shall pay to LS&CO., or to such other person or entity as LS&CO. may designate, an amount equal to [____]* on projected Net Sales up to [____]*, [____]* on projected Net Sales between [____]* and [____]*, and [____]* on projected Net Sales over [__]* on men's products only (the "Marketing Contribution"). Licensee shall pay these amounts to LS&CO. within thirty (30) days after receipt of invoices from LS&CO., it being understood that LS&CO. anticipates issuing these invoices at the time of the underlying expenditure for marketing activities. If actual aggregate Net Sales exceed projected Net Sales for any Annual Period, then Licensee shall pay to LS&CO. an agreed percentage of the excess, with that amount payable in, and for use during, the next Annual Period, in addition to the Marketing Contribution otherwise due for that Annual Period. Marketing Contributions shall be separate from and shall not be subject to credit for expenditures by Licensee for cooperative advertising, trade advertising, fixture programs, trade shows, sampling or any other promotional or sales material. LS&CO. shall use these funds for consumer marketing of the brand and branded products through vehicles and at the times and in the manner as LS&CO. may determine, Licensee acknowledging that it may not receive any direct or pro rata benefit from its Marketing Contributions.

Consumer Advertising. During the first Annual Period, Licensee will spend throughout the Territory for Consumer Advertising (as defined below) at least *. Beginning with the second Annual Period, Licensee will spend in the United States for Consumer Advertising at least * of Net Sales in such market for the immediately preceding Annual Period. Beginning with the second Annual Period, for the other markets in the Territory, Licensee or its distributors will jointly spend for Consumer Advertising an amount equal to at least * of Net Sales in such markets during the immediately preceding Annual Period. It is understood that such required or actual spending shall not in any way reduce Net Sales or Sales Royalties due hereunder or be used to satisfy or offset any other obligation of Licensee hereunder.

Consumer Advertising. Consumer Advertising shall be understood to include newspapers, magazines, television, radio, Internet, billboards (including related artwork and production charges for these five categories) cooperative advertising, retailer demonstration charges, retailers' catalogues, gifts-with-purchase (so long as any such gifts do not violate one of Roddick's or Licensor's existing or future endorsement relationships (i.e. Reebok, Rolex, etc.), direct mail, remittance envelopes, blow-ins, billing inserts (both scented and unscented), product samples, pamphlets, free goods (including those to Licensor for events and other public relations activities), window and counter displays (including testers, dummies, counter cards and other visual aids), in-store demonstrators and models, special events, contests, publicity and promotions.