LOCAL DMA ADVERTISING GROUP. At such time as there are two (2) or more Cost Cutters businesses (including the FRANCHISEE'S Cost Cutters Business) in the FRANCHISEE'S DMA, COST CUTTERS will have the right to require that the FRANCHISEE become a member of, participate in, and contribute to a local DMA advertising group that will conduct and administer media advertising and promotions in the FRANCHISEE'S DMA. Each local DMA advertising group will have a membership with equal representation for each Cost Cutters business in the DMA, including the Cost Cutters businesses owned and operated in the DMA by COST CUTTERS. The costs for the media advertising and promotions conducted by the local DMA advertising group will be allocated among and paid by the members of the local DMA advertising group, based either on a percentage of Gross Revenues or on a pro rata basis, the selection of which method to be determined by the majority of the members of the local DMA advertising group. Payments to the local DMA advertising group by the FRANCHISEE for media advertising and promotion will be applied to the quarterly media advertising and promotional expenditures required under Article 6.6 above. However, the FRANCHISEE must contribute its proportionate share of the costs for the local media advertising and promotions conducted by the local DMA advertising group, as determined by the majority of its members in accordance with the method of allocation set forth above, even if this amount exceeds one percent (1%) of the FRANCHISEE'S Gross Revenues. Notwithstanding the foregoing, for the first (1st) through the thirty-fourth (34th) weeks of the FRANCHISEE'S operation of its Cost Cutters Business pursuant to this Agreement, the FRANCHISEE will not be obligated to pay any portion of the costs for media advertising and promotions conducted by the local DMA advertising group.
