Charitable Sales Promotion Agreement

Charitable Sales Promotion / Co-Venture and Licensing Agreement
This Agreement is entered into this ___ day of _____, 20______, between the CHARITY, Inc., a
[STATE] corporation located at ___________________________________ (“CHARITY”), and
__________________________, a [STATE] corporation located at
__________________________________ (“COMPANY”). This Agreement is designed to clarify the
two parties’ responsibilities for regulatory compliance with state charitable sales promotions and
commercial co-venture laws and regulations.
PURPOSE
The purpose of this Agreement is to benefit CHARITY and advance its not-for-profit mission
to___________________________________. COMPANY desires to support CHARITY to carry out
its mission and agrees to provide the support described in this Agreement. COMPANY understands
that as a not-for-profit charitable organization CHARITY cannot promote or endorse COMPANY’s
products or services. CHARITY acknowledges that the Promotion as set forth herein does not
constitute any such impermissible promotion or endorsement.
NATURE AND TERM OF PROMOTION

COMPANY shall conduct a charitable sales promotion (the “Promotion”) in which it shall make a
donation to CHARITY for each sale of XXXXXX as described in Exhibit A (the “Promotion
Product”) from [DATE] to [DATE] (the “Promotion Period”). COMPANY shall provide to
CHARITY a total donation equal to $X multiplied by the number of Promotion Products purchased
during the Promotion Period. The geographic area of the Promotion shall be worldwide.
USE OF INTELLECTUAL PROPERTY

CHARITY hereby grants COMPANY a limited, non-exclusive worldwide license (without the right to
sublicense) to use CHARITY’s trademark, attached as Exhibit B (the “Mark”), for the duration of this
Agreement, for the sole purpose of manufacturing, distributing, marketing, promoting and selling the
Promotion Product embodying the Mark. COMPANY shall use the Mark only as permitted under this
Agreement. Any designs incorporating the Mark but be approved by CHARITY prior to production.
Nothing in this Agreement shall be deemed to constitute or result in an assignment of the Mark to
COMPANY or to give COMPANY any right, title or interest in or to the Mark other than the right to
use the Mark in accordance with this Agreement. COMPANY shall not register or apply to register the
Mark, or any confusingly similar mark, or represent that it owns the Mark. COMPANY will not attack
or challenge in any court of law, or in any other manner, the title of CHARITY to the Mark or
CHARITY’s ownership of any copyrights in or distinctive features of the Mark, or the validity or
enforceability of the Mark.
TERMINATION
Either Party may terminate this Agreement upon 14 days written notice to the other Party. Upon
termination of this Agreement, COMPANY shall provide CHARITY with final donations and
accounting as described below and cease using the CHARITY name in any promotional activities.
Furthermore, upon termination, COMPANY’s right to use the Mark shall cease, and COMPANY shall
immediately and permanently discontinue all use thereof. However, COMPANY may, for a period of
90 days following termination, continue to distribute and dispose of existing supplies of the Promotion
Product so long as it continues to make the charitable sales promotion payments to CHARITY. The
Intellectual Property provisions shall survive the expiration or termination of this Agreement.
PAYMENT AND ACCOUNTING
COMPANY shall make an initial donation to CHARITY, in the amount stated above based on sales of
the Promotion Product, within 90 days of the start of the Promotion Period. COMPANY shall continue
to make further donations to CHARITY, in the amount stated above based on sales of the Promotion
Product, every 90 days through expiration or termination of this Agreement. COMPANY agrees that it
will make a minimum donation to CHARITY of $_________ every 90 days. COMPANY shall
provide CHARITY with a final accounting within 90 days of the end of the Promotion Period of the
total donation made to CHARITY based on sales of the Promotion Product, and shall retain the final
accounting and make it available to the CHARITY for a period of three (3) years following
completion of the Promotion. The CHARITY donation is deemed to occur contemporaneously with
receipt of the funds from the consumer purchasing the Promotion Product. All CHARITY donations
are held in trust for CHARITY by the COMPANY. CHARITY donations not immediately paid or
delivered to CHARITY shall be held in trust for the benefit of CHARITY and be promptly paid or
delivered to CHARITY by the COMPANY as described above. All payments to CHARITY shall be
made ATTN: ________________________________________________________________.
DISCLOSURE OF DONATION
Materials that inform the consumer of the donation being made to CHARITY must clearly state the
amount or percentage of the CHARITY donation that shall result from the purchase of the Promotion
Product, the time period during which purchase shall result in a donation to CHARITY, and the
limitation, if any, on the contribution.
CO-VENTURE STATEMENT OF RELATIONSHIP

Whenever COMPANY offers a Promotion Product for purchase to the public or promotes or
advertises a Promotion Product, one of the following statements of relationship or a similarly-
worded statement of relationship must be included on the advertisement and offer for sale:
 For every purchase of X from [DATE] through [DATE], COMPANY will donate $____ of
the purchase price to the CHARITY.
 COMPANY is proud to support CHARITY. For every purchase of X from [DATE] through
[DATE], COMPANY will donate $_______ of the purchase price to the CHARITY.
COMPLIANCE WITH STATE LAWS

In conducting this promotion, both CHARITY and COMPANY agree to comply in a timely manner
with the requirements of state laws and regulations applicable to each respective party with respect to
the performance of its obligations hereunder. The parties further acknowledge and agree that the
Promotion set out in this Agreement is subject to the requirements of the various state charitable
solicitation laws. COMPANY and CHARITY acknowledge that some states impose registration
requirements on co-venturers. CHARITY represents and warrants that it has complied with all
federal and state laws allowing it to solicit funds, including in the District of Columbia. New York
law requires that written agreements for co-venture sales promotions conducted in the State of New
York must include the following provision: that the charitable organization may cancel this contract
without cost, penalty, or liability for a period of fifteen (15) days following the date on which the
contract is filed with the New York Attorney General. Notice of cancellation should be sent to
COMPANY at ___________________________________________. A duplicate notice of
cancellation should be sent to New York Attorney General, Attorney General Eric T. Schneiderman,
The Capitol, Albany, NY 12224-0341.
RESOLUTION OF CONFLICTS
The Parties agree in good faith to make every effort to resolve disputes that arise in the performance of
this Agreement. Each Party shall make its best efforts to resolve any disputes informally or through a
mutually agreed-upon mediator. However, in the event that mediation or informal resolution fails, the
Parties will bring their claims arising under this Agreement in a court in the District of Columbia, and
this Agreement shall then be governed by the laws of the District of Columbia.
LIABILITY AND INDEMNIFICATION

COMPANY and CHARITY agree that each party is responsible for its own business activities and will
not be held liable for the activities of the other party, except that COMPANY agrees to indemnify and
hold harmless CHARITY, and its employees, representatives, and agents from any and all liability,
loss, damage, cost or expense, including reasonable counsel fees and expenses, paid or incurred in
connection with COMPANY’s operation of the Promotion or sale of any products or services, or by
reason of COMPANY’s intentional or negligent conduct relating to performance of this Agreement.
CHARITY assumes no liability to third parties with respect to the provision of any goods or services
and/or any use of the Mark by COMPANY. COMPANY shall not be required to indemnify, defend or
hold CHARITY harmless against claims asserting that the Mark infringes any trademark, copyright or
other proprietary rights.
NOTICE
All notices pertaining to this Agreement shall be in writing and shall be transmitted either by personal
hand delivery, by overnight delivery, through the United States Postal Service by registered or
certified mail, return receipt requested, or by electronic mail. The addresses set forth below for the
respective parties shall be the places where notices shall be sent unless written notice of a change of
address is given:
For CHARITY:
For COMPANY:
MISCELLANEOUS PROVISIONS
 Waiver: No failure of any Party to exercise or enforce any of its rights under this Agreement
will act as a waiver of such rights.
 Severability: If any provision of this Agreement is found invalid or unenforceable, that

provision will be enforced to the maximum extent permissible, and the other provisions of this
Agreement will remain in force.
 Entire Agreement: This Agreement and its exhibits are the complete and exclusive agreement
between the Parties with respect to the subject matter hereof, superseding and replacing any
and all prior agreements, communications, and understandings, both written and oral, regarding
such subject matter.
 Modification: This Agreement may only be modified, or any rights under it waived, by a
written document executed by all Parties.
 Execution: This Agreement may be executed in any number of counterparts, all of which
taken together will constitute a single instrument. Execution and delivery of this Agreement
may be evidenced by facsimile transmission.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized representatives as of the date first written above.
Signatures (Two signatures by CHARITY officers required):
CHARITY, Inc. COMPANY, Inc.
By: _____________________ By: _________________________

Name Name
_________________________ _____________________________
Title Title
________________________ _____________________________
Date Date
By: _____________________
Name
_________________________
Title
________________________
Date
Exhibit A
Promotional Product Description

Exhibit B
Mark:

Charitable Sales Promotion Agreement

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Charitable Sales Promotion / Co-Venture and Licensing Agreement

NATURE AND TERM OF PROMOTION

USE OF INTELLECTUAL PROPERTY

CO-VENTURE STATEMENT OF RELATIONSHIP

COMPLIANCE WITH STATE LAWS

LIABILITY AND INDEMNIFICATION

 Severability: If any provision of this Agreement is found invalid or unenforceable, that

Signatures (Two signatures by CHARITY officers required):

CHARITY, Inc. COMPANY, Inc.

By: _ By: _____

Promotional Product Description

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