HomeMy WebLinkAboutAD07-010 - Original - Amiga, Inc. - Letter of Intent: Naming Rights Agreement - 04/17/2007 '
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LETTER OF INTENT—NAMING RIGHTS AGREEMENT
AMIGA CENTER at KENT
THIS LETTER OF INTENT is entered into among the City of Kent, a
Washington municipal cor oration, Amiga, Inc., and Thunderbird Hockey
Enterprises, L.L.C.
1. On or about February 24, 2007, Amiga and the Team entered into a
Naming Rights Deal Memorandum, an unsigned copy of which is
attached as Exhibit A. This Memorandum contemplates various rights
and obligations affecting all the parties related the naming rights to be
attached to the development and construction of an approximately 6025
seat events center in Kent. Kent was not a party to this Memorandum.
2. Subsequent to the two parties executing this Memorandum, Amiga and
the Team negotiated the naming rights terms with Kent. The payment
schedule in the Memorandum was adjusted to a $2,500,000 initial
payment to be followed by 15 annual payments of $500,000, with no
payments to be made for the last five years of naming rights for the
events center.
3. The parties have been negotiating in good faith to finalize and execute a
naming rights agreement, but due to time constraints have not been
able to finalize all terms of that agreement.
4. The parties will publicly announce the Team and the City's naming
rights partner, Amiga, at a special event to be held today, April 17,
2007. Accordingly, all parties agree, in principle, to the terms, rights
and obligations established in the attached Memorandum, including all
rights and obligations referenced that would inure to the City, subject to
negotiation and execution of a final naming rights agreement.
5. This Letter of Intent will take effect Tuesday, April 17, 2007.
A , INC. THUNDERBIRDS HOCKEY
ENTERPRISES, L.L.C.
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BY B1KNT,
� BY C Ca pbell
ITS ITS
DATE DATE
CITY WASHINGTON
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I S Ad hest t Officer
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Naming Rights Deal Memorandum
Amiga, Inc and Thunderbird Hockey Enterprises, LLC, agree that a naming rights agreement
by and among Amiga, Thunderbird Hockey Enterprises and the City of Kent for the planned
events center in the City of Kent, will include the following terms and deal points:
1) Event Center to be named—AMIGA CENTER AT KENT
2) Locations for signs with the name of the Center would include:
a. Front of the Center at the Main Entrance and on the side facing Highway 167
b. Possible placement on the roof
c Any Marquee that may or may not be put in Front of the center
d. City signs giving direction to the Center
e. Elements inside the Center
i. Name on the Score Clock
ii. Name under the Ice
iii. Name on the Zamboni's
3) Amiga will be given use of a Suite in the Center for the term of the agreement
4) Term and Payment: 20 year agreement beginning when the Center opens in 2008
and running through 2027.
Payment schedule - $5,000,000 00 up front, annual Payments of$500,000.00
would be due the first of October,beginning in 2008 and running through 2017, according
to the following schedule:
Up front payment: $ 5,000,000.00
1 2008 $ 500,000 00 Oct 1,2008
2 2009 $ 500,000 00 Oct 1,2009
3 2010 $ 500,000 00 Oct 1,2010
4 2011 $ 500,000 00 Oct 1,2011
5 2012 $ 500,000 00 Oct 1,2012
6 2013 $ 500,000 00 Oct 1,2013
7 2014 $ 500,000 00 Oct 1,2014
8 2015 $ 500,000 00 Oct 1,2015
9 2016 $ 500,000 00 Oct. 1,2016
10 2017 $ 500,000 00 Oct. 1,2017
11 2018 Oct 1,2018
12 2019 Oct 1,2019
13 2020 Oct 1,2020
14 2021 Oct 1,2021
15 2022 Oct 1,2022
16 2023 Oct 1,2023
17 2024 Oct. 1,2024
18 2025 Oct 1,2025
19 2026 Oct 1,2026
20 2027 Oct 1,2027
TOTAL $10,000,00000
EXHIBIT
5) Each party is able to use the other's logos for signage, souvenirs, etc with respect to
promoting the Event Center:
Amiga License to the City and the Thunderbirds
City and Thunderbird License to Amiga
6) Right of First Refusal to Extend:
Amiga has Right of First Refusal to extend the agreement.
7) Option to Change Center Mark:
Amiga may change center mark with approval from the City and subject to any
exclusivity deals that may be in place. Change of all signage would be at the expense
of Amiga.
Agreed to By: Agreed to By:
Bill McEwen Date Colin Campbell Date
Amiga, Inc. Thunderbird Hockey Enterprises, LLC
Naming Rights Deal Memorandum 2