The MOU for Sponsorship is commonly used in the Philippines when parties wish to document their preliminary understanding regarding a sponsorship arrangement before committing to a full, binding agreement. This document type is particularly useful during the initial stages of sponsorship negotiations, allowing parties to outline key commercial terms while maintaining flexibility. The MOU typically includes provisions for sponsorship rights, financial terms, intellectual property usage, and the path toward a definitive agreement, all while operating within the Philippine legal framework. It's especially valuable for complex sponsorship arrangements where parties need to establish clear intentions and basic terms before investing in detailed contract negotiations. The document must comply with Philippine contract law principles while remaining appropriately non-binding in nature, except for specific provisions such as confidentiality and exclusivity where agreed.
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1. Parties: Identification of the sponsor and the sponsored entity, including full legal names and addresses
2. Background: Context of the sponsorship relationship and brief description of each party's business/activities
3. Definitions: Key terms used throughout the MOU including 'Sponsorship Period', 'Sponsorship Benefits', and 'Sponsorship Fee'
4. Purpose: Clear statement of the intended purpose and scope of the sponsorship arrangement
5. Sponsorship Rights and Benefits: Overview of the rights granted to the sponsor and benefits to be provided by the sponsored party
6. Financial Terms: Outline of sponsorship fees, payment schedule, and any in-kind contributions
7. Duration: Proposed timeframe for the sponsorship relationship
8. Intellectual Property: Basic terms for usage of logos, trademarks, and other brand materials
9. Confidentiality: Basic confidentiality obligations regarding the MOU and discussions
10. Non-Binding Nature: Clear statement that the MOU is non-binding except for specific clauses
11. Next Steps: Process and timeline for negotiating and executing a definitive agreement
12. Execution: Signature blocks and execution details
1. Exclusivity: Used when the sponsor requires category exclusivity or other exclusive rights
2. Event-Specific Terms: Include when sponsorship relates to specific events or tournaments
3. Digital Rights: Added when sponsorship includes significant digital or social media components
4. Territorial Rights: Include when sponsorship rights are limited to specific geographic areas
5. Regulatory Compliance: Added for regulated industries (e.g., alcohol, tobacco, gambling)
6. Force Majeure: Include when parties want to address potential disruptions to sponsorship activities
7. Moral Clauses: Used when reputation management is a key concern
8. Renewal Options: Include when parties want to outline potential extension terms
1. Schedule A - Sponsorship Benefits: Detailed list of all sponsorship rights, benefits, and deliverables
2. Schedule B - Brand Guidelines: Basic guidelines for usage of sponsor's logos and branding elements
3. Schedule C - Payment Schedule: Detailed breakdown of proposed payment terms and installments
4. Schedule D - Key Milestones: Timeline of key dates and deliverables for the sponsorship
5. Appendix 1 - Contact Details: Key contact persons for both parties
6. Appendix 2 - Initial Marketing Plan: Preliminary marketing and activation concepts
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