Sample Format of Sponsorship Agreement

Narendra Kumar

15 Jun, 2019

Sample Format of Sponsorship Agreement

 An agreement between a party, called Sponsor and those entitled to enforce the sponsorship obligation is called a Sponsorship Agreement (or contract). Sponsorship agreement contains the number of terms and conditions. Generally, it is adopted as a marketing strategy as it involves the payment of sponsorship fees in return for a publicity related benefits. The sponsorship agreement is being adopted by both the parties as it balances the interest of both the parties.

What are the Benefits of Sponsorship Agreement?

1. Sponsorship often can generate media coverage which may not have been otherwise available.
2. The practice of using Sponsorship as a market strategy.
3. Favor the interest of both the parties.
4. Easy to enter and easy to exit.
5. Promotion of Trademark.
6. Warranty clause in the sponsorship agreement protects the interest of both the parties.
7. Direct advertisement of the product.

What are the Elements of Sponsorship Agreement?

A well-drafted sponsorship agreement must have the following clauses:-

 Term of Contract

The term of this contract when it shall commence and the tenure till when it will be in force or where either of the parties terminates pursuant to the terms and conditions of this contract.

2. Sponsorship Rights and Benefits

 What are the benefits that organizer is agreed to grant to the sponsor? Whether the rights granted are exclusive or non- exclusive. A complete list of rights should be given in the agreement.

3. Cooperation

 Both the parties will endeavor to conduct itself in a manner so as to present a professional and high-quality promotion and image of the event.

• The organizer must not bring into disrepute or otherwise damage the name or goodwill of [Sponsor Name] or the corporate identification.
• An organizer will use its best endeavors to ensure that all third parties act consistently with the Sponsorship Rights and Benefits and do everything necessary in order for [Organizer] to perform its obligations under this Agreement. [Organizer] will use its best endeavors to prevent any third party from infringing the rights of its sponsors and if necessary take legal action to stop any actions and protect the rights of any sponsors.

1. The Event/S

 All the events pertaining to the sponsorship must be the list out in the agreement; like

• Staging of the Event
• Quality of the Event
• References to the Event
• Official Event Logo of the Event

1. Advertising and Promotional Material

In respect of any advertising materials produced by [Sponsor Name] containing any corporate identification, [Sponsor Name] must obtain the approval of organizer before the advertising materials.  Such approval will not be unreasonably withheld or delayed.

1. Sponsorship Monies

 In consideration of the Rights and Benefits granted to [Sponsor Name], and the obligations to be performed by organizer under this Agreement, [Sponsor Name] will pay to the organizer the sponsorship monies in the installments and on or before the dates as set out in the Sponsorship Monies Payment Schedule below detailed:-

1. Tax Payment

 The parties must provide each other with all documentation required to claim an Input Tax Credit, set off, rebate or refund for or in relation to any GST included in any payment made under this Agreement.

2. Indemnity

• Indemnity by Organizer

Organizer indemnifies [Sponsor Name] against any claim, action, damage, loss, liability, cost or expense that [Sponsor Name] may suffer, pay, incur or is liable for directly or indirectly by reason of or in any way arising out of or in connection with:

• Any breach of this Agreement by Organizer; or
• Any negligent act or omission, fraud or willful misconduct on part of the organizer.
• Indemnity by Sponsor

[Sponsor Name] indemnifies organizer against any claim, action, damage, loss, liability, cost or expense that [NF Name] may suffer, pay, incur or is liable for directly or indirectly by reason of or in any way arising out of or in connection with:

• Any breach of this Agreement by [Sponsor Name]; or
• Any negligent act or omission, fraud or willful misconduct on part of the [Sponsor Name].

3. Termination

 Events for Default

Either [Sponsor Name] or [Organizer name] may immediately terminate this Agreement by written notice if:

• One party breaches a material term of this Agreement; and
  • It cannot be remedied; or
  • If capable of being remedied, such breach is not remedied within 14 business days of a written request by the other party to remedy that failure
• It becomes illegal for one party to perform any of its material obligations under this Agreement;
• An Insolvency Event occurs in relation to either party;
• Any warranty, representation or statement by either party is or becomes false or incorrect when made or regarded as made

 Amendments

 No amendment or variation of this Agreement is valid or binding on a party unless in writing and executed by all parties.

5. General

 Other clauses that may be covered are as follows:-

• Compliance with Laws
• Relationship of Parties
• Costs and Expenses
• Governing Law and Jurisdiction