The Sponsorship Commission Agreement serves as a critical document in the sponsorship industry, establishing clear parameters for compensation in sponsorship arrangements. This contract type is essential when engaging sponsorship agents or brokers who work to secure sponsorship opportunities. It addresses key aspects such as commission structures, performance metrics, payment schedules, and compliance requirements under U.S. federal and state regulations. The agreement helps prevent disputes by clearly defining the scope of services, commission calculations, and payment terms while ensuring compliance with FTC guidelines and industry standards.
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1. Parties: Identification of the sponsor and sponsorship agent/broker
2. Background: Context of the sponsorship arrangement and relationship between parties
3. Definitions: Key terms used throughout the agreement including Commission, Sponsorship Deals, Territory, etc.
4. Appointment and Scope: Terms of the agent's appointment and scope of authority to secure sponsorship deals
5. Commission Structure: Details of commission rates, calculation methods, and payment terms
6. Term and Termination: Duration of agreement and conditions for termination
7. Obligations of Parties: Specific duties and responsibilities of each party
8. Representations and Warranties: Standard assertions about legal capacity and authority to enter agreement
9. Confidentiality: Protection of confidential information shared during the relationship
10. General Provisions: Standard legal clauses including notices, amendments, governing law, etc.
1. Exclusivity Provisions: Used when parties want to establish exclusive relationships in specific territories or categories
2. Territory Restrictions: Geographic limitations on sponsorship activities and commission eligibility
3. Performance Metrics: Specific targets or KPIs for commission eligibility and performance standards
4. Intellectual Property: Provisions regarding use of trademarks, logos, and other IP in securing sponsorships
5. Compliance with Laws: Specific provisions regarding FTC guidelines, advertising laws, and industry regulations
1. Schedule A - Commission Rate Schedule: Detailed breakdown of commission rates, tiers, and calculation methods
2. Schedule B - Reporting Template: Standard format for performance and commission reporting
3. Schedule C - Approved Sponsorship Categories: List of permitted sponsorship types or industries
4. Schedule D - Payment Procedures: Detailed process for commission calculations, invoicing, and payment terms
5. Schedule E - Territory Definition: Detailed description of geographic territories covered by the agreement
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