THL’s Advertising Spend. [***]THL will spend the amounts received from Licensee pursuant to Sections 7.1.1 and 7.1.2 above within the applicable Annual Period in the Territory as follows: [***]. Each Annual Period, THL will use commercially reasonable efforts to expend an amount equivalent to at least [***] of the prior Annual Period’s Net Sales on advertising as set forth above. Such expenditures will include, without limitation, marketing, advertising, public relations, special events and promotions, production, administration and other costs directly related to all of the foregoing. Additionally, Licensee acknowledges that, THL may allocate a portion of Licensee's payments toward THL (or its Affiliates' or licensees') production of advertising materials and costs incurred in connection therewith (e.g. costs for photographers, models, usage rights, advertising shoots, etc.) provided Licensed Products are depicted in such materials. Any apportionment of advertising costs among Licensed Products and other products bearing the Trademark shall be made by THL in its reasonable discretion. Additionally, THL may undertake various endorsements, team and event sponsorship and other such activities as THL deems appropriate as part of a worldwide marketing program to develop its image internationally. Subject to the foregoing, THL will be entitled to allocate up to [***]% of Licensee's advertising payments (i.e., [***]% of the prior Annual Period’s Net Sales) toward Licensee's share of the cost of such program; provided, however, that such allocation will be increased to [***]% of Licensee’s advertising payments (i.e., [***]% of the prior Annual Period’s Net Sales) to the extent such marketing program generally includes Licensed Products (e.g., an influencer campaign provided such influencer is able to promote Licensed Products even if such Licensed Products are not featured in every printed material in which such influencer appears).
