SPONSORSHIP AGREEMENT
This sponsorship agreement (hereinafter the "Agreement") is entered into in [City where the contract is signed] on [Contract date] between the following parties:
1. PARTIES
1.1 Sponsor:
[Sponsor's name/company]
Registry code: [Sponsor's registry code]
Address: [Sponsor's address]
Contact: [Sponsor's contact]
Representative: [Sponsor's representative]
(hereinafter the "Sponsor")
1.2 Sponsored Party:
[Sponsored party's name/company]
Registry code: [Sponsored party's registry code]
Address: [Sponsored party's address]
Contact: [Sponsored party's contact]
Bank account: [Sponsored party's bank account (IBAN)]
Representative: [Sponsored party's representative]
(hereinafter the "Sponsored Party")
2. OBJECT OF SPONSORSHIP
2.1 The subject matter of this Agreement is: [Object of sponsorship]. Type of sponsorship: [Type of sponsorship].
2.2 This Agreement is not a donation — the Sponsor receives the specific counter-services set out in this Agreement, and it is therefore a reciprocal business transaction.
2.3 The Sponsor has no right to interfere in the substantive, creative, sporting or editorial decisions of the Sponsored Party; the Sponsored Party decides on the content of its activities independently.
3. FORM AND AMOUNT OF SUPPORT
3.1 Form of support: [Form of support]; amount [Amount of support (€)] euros. Description of the in-kind support: [Description of in-kind/service support], estimated value [Estimated value (€)] euros. Payment schedule: [Payment schedule].
3.2 Monetary support shall be transferred to the Sponsored Party's bank account specified in clause 1.2. Ownership of in-kind support passes to the Sponsored Party upon its delivery, unless the Parties have agreed otherwise.
3.3 The Sponsored Party shall use the support for activities related to the object of sponsorship specified in clause 2.1.
4. SPONSORSHIP LEVEL
4.1 Sponsorship level: [Sponsorship level].
5. COUNTER-SERVICES
5.1 The Sponsored Party provides the Sponsor with the following counter-services:
[Counter-services]
Logo placement locations: [Logo placement locations].
5.2 This section is relevant to the Sponsor's tax documentation — sponsorship with documented counter-services is generally a business expense, not a donation.
5.3 The Sponsored Party shall provide the counter-services during the sponsorship period in the agreed volume and quality. If a counter-service is not provided or is provided only in part for a reason other than cancellation of the event due to force majeure (clause 10.1), the Sponsor has the right to demand a reduction of the support or the return of support already paid in the same proportion as the value of the counter-services not provided bears to the value of all agreed counter-services.
6. CATEGORY EXCLUSIVITY
6.1 Competing brands in the category "[Protected category]" may not sponsor the Sponsored Party during the sponsorship period.
7. BRAND GUIDELINES
7.1 The Sponsor shall provide the Sponsored Party with its logo and brand guidelines, which the Sponsored Party must follow. Materials featuring the Sponsor require the Sponsor's prior approval.
7.2 For the term of the Agreement, the Sponsor grants the Sponsored Party a simple licence to use the Sponsor's name, trademarks and logos solely to the extent necessary for providing the counter-services. The licence terminates upon termination of the Agreement, and the Sponsored Party shall cease using the Sponsor's designations, except in materials published before the termination of the Agreement whose removal is not reasonably possible.
8. PERIOD
8.1 Sponsorship period: [Sponsorship period].
8.2 The Agreement remains in force until the end of the sponsorship period and until the proper performance of the Parties' obligations, including the completion of reporting and settlements.
9. REPORTING AND DOCUMENTATION
9.1 The Sponsored Party shall document and submit to the Sponsor evidence of the performance of the counter-services (photographs of logo placement, social media extracts, number of participants, media coverage) within a reasonable time after the event has taken place or the sponsorship period has ended.
10. CANCELLATION OF THE EVENT AND FORCE MAJEURE
10.1 If the event is cancelled due to force majeure, clause 5.3 does not apply, and the Parties shall agree separately on the repayment of the support, its transfer to the next event or a partial repayment based on the counter-services already provided.
10.2 Force majeure is a circumstance which a Party could not influence and, based on the principle of reasonableness, the Party could not be expected to take into account at the time of entering into the Agreement, or to avoid or overcome the circumstance or its consequences (Law of Obligations Act (VÕS) § 103). A Party shall notify the other Party of circumstances of force majeure immediately.
10.3 If the event is cancelled or postponed for any other reason arising from the Sponsored Party, the Sponsored Party shall return the support in the part for which counter-services were not provided, unless the Parties agree on a new date for the event.
11. LIABILITY
11.1 The Sponsored Party is liable for the proper performance of the counter-services. The Sponsor is not liable for the content of the event.
11.2 A Party shall be liable for breach of obligations arising from the Agreement, unless the breach is excusable. The injured Party has the right to claim compensation for both direct patrimonial damage and loss of profit (VÕS § 128).
11.3 Each Party ensures that the advertising materials it provides comply with legislation, including the Advertising Act, and do not infringe the rights of third parties.
12. INTELLECTUAL PROPERTY
12.1 The Sponsor's trademarks shall be used in accordance with the brand guidelines referred to in clause 7.1. Content created by the Sponsored Party featuring the Sponsor requires the Sponsor's prior approval.
12.2 During the term of the Agreement, the Sponsor has the right to use the name of the Sponsored Party and the name of the object of sponsorship to publicise the sponsorship in its marketing in a manner that does not damage the reputation of the Sponsored Party.
13. CONFIDENTIALITY
13.1 The amount and terms of the sponsorship are confidential, unless the Parties agree otherwise in writing.
14. TERMINATION OF THE AGREEMENT
14.1 Notice period for ordinary cancellation: [Notice period for cancellation].
14.2 Either Party may cancel the Agreement without observing the notice period if the conduct of the other Party significantly damages its reputation.
14.3 Either Party may cancel the Agreement extraordinarily for good reason, in particular in the event of a material breach of an obligation by the other Party which has not been remedied within a reasonable time limit (VÕS § 196). In the event of cancellation, support paid in advance shall be returned in the part corresponding to the period following the cancellation (VÕS § 195 lg 5).
15. NOTICES
15.1 Notices related to the Agreement which have legal consequences shall be given to the other Party in writing or in a form which can be reproduced in writing (including by e-mail) at the contact details specified in clause 1 or at other details which the Party has notified to the other Party in writing.
15.2 Notices of a purely informative nature may also be communicated by telephone. A Party shall notify the other Party of any change in its contact details without delay.
16. DISPUTE RESOLUTION
16.1 Disputes arising from this Agreement shall be resolved primarily through negotiations and, failing agreement, as follows: [Dispute resolution].
16.2 The Agreement is governed by the law of [Governing law].
17. FINAL PROVISIONS
17.1 Each Party is itself responsible for the performance of the tax obligations imposed on it by law.
17.2 Amendments and supplements to the Agreement shall be made in writing or in a form which can be reproduced in writing and shall enter into force once both Parties have confirmed them.
17.3 A Party may not transfer the rights and obligations arising from the Agreement to a third party without the prior written consent of the other Party.
17.4 If any provision of the Agreement is or becomes invalid, this shall not affect the validity of the remaining provisions. The Parties shall replace the invalid provision with a valid one which is as close as possible to it in its economic substance.
17.5 The Agreement (together with its annexes) constitutes the entire agreement between the Parties and supersedes all prior oral and written agreements relating to the subject matter of the Agreement. The Agreement enters into force once both Parties have signed it.
18. LEGAL BASIS
18.1 This sponsorship agreement is subject to the general part of the Law of Obligations Act (freedom of contract). As regards taxation: sponsorship with documented counter-services is generally a business expense; in the absence of counter-services or in the case of personal benefit, it may constitute entertainment expenses (Income Tax Act (TuMS) § 49) or a fringe benefit; support to an organisation without counter-services may be taxable as an expense not related to business (TuMS § 51) if the recipient of the support is not on the list of associations benefiting from income tax incentives.