Sponsorship Agreement

A sponsorship agreement is a legal contract that is entered into between a sponsor and an event organiser, allowing the sponsor to acquire certain rights and licenses in relation to the event. This article discusses the key clauses of a sample sponsorship agreement, including interpretation, grant of sponsorship rights, sponsorship fee, term, termination, and confidentiality. The interpretation clause provides definitions for specific terms such as business day, company logo, designated account, event, event logos, event period, event title, marks, sponsorship fee, and sponsorship rights. The grant of sponsorship rights clause appoints the sponsor to be the primary sponsor of the event and grants the sponsor exclusive rights to display advertising boards and banners, use marks on stationery, display and sell company products, be acknowledged as the sponsor of the event in all advertising, and more. The sponsorship fee clause specifies the amount of money that the sponsor will pay to the event organiser for the sponsorship rights. The term clause outlines the duration of the agreement and the termination clause explains the grounds for termination of the agreement by either party. The confidentiality clause prohibits the parties from disclosing any confidential information that they may obtain during the course of the agreement. The sample sponsorship agreement also includes schedules that provide more details on the company logo, company products, and marks that are subject to the agreement.

Overall, the sponsorship agreement is a legally binding document that outlines the terms and conditions of the sponsorship deal between the sponsor and event organiser. It ensures that the rights and obligations of both parties are clearly defined and understood. The agreement is crucial in preventing disputes and disagreements between the parties and also helps to protect the interests of both parties. It is important for both parties to carefully review and understand the terms of the agreement before signing it to avoid any future complications.

How to use this Document?

If you are a sponsor or event holder, using a sponsorship agreement can help you define the terms and conditions of your relationship. Here are the steps on how to use this document:

1. Interpretation: The first section defines the terms used in the agreement, including the Event, Event Holder, Sponsor, Business Day, and Marks, among others.

2. Grant of Sponsorship Rights: The next section details the Sponsor's exclusive and non-exclusive rights, licenses, and opportunities, including the right to display advertising, use the Marks, display and sell products, and provide a permanent trophy.

3. No Other Grant: The agreement states that the Event Holder will not grant any rights to any other party that may adopt the description of "Sponsor" of the Event. This means that the Sponsor will be the only company or organisation to have this status.

4. Official Supplier Status: This section outlines the Sponsor's official supplier status, subject to the conditions stipulated in the agreement. It also details the rights and responsibilities of the Sponsor in this regard.

5. Sponsorship Fee and Payment: The agreement specifies the Sponsorship Fee and how it should be paid. It also provides details on the designated account where the Sponsor should send the payment.

6. Warranties and Indemnities: This section covers the warranties and indemnities provided by both parties, including intellectual property rights, liabilities, and damages.

7. Term and Termination: The agreement specifies the duration of the sponsorship agreement and how either party may terminate the agreement.

8. Confidentiality: The agreement contains a confidentiality clause that prohibits both parties from disclosing any confidential information related to the agreement.

9. Notices: The final section provides details on how to deliver notices to each party, including by post, fax, or email.

By following these steps, the Sponsor and Event Holder can establish a clear and comprehensive sponsorship agreement that outlines the rights, responsibilities, and obligations of each party. This can help to avoid misunderstandings, disagreements, and disputes that could arise during the sponsorship period.