Consideration for Sponsor’s Payment of The Sponsorship Fee
In full consideration for Sponsor’s payment of the Sponsorship Fee, Mohegan Sun, at its cost and expense, shall provide Sponsor the following benefits during the Term: Reserved Cabaret tickets – Upon reasonable request, Sponsor shall receive up to four (4) tickets to each event taking place at Mohegan Sun Cabaret, during the Term, for which tickets are sold to the general public generally, and for which Mohegan Sun has retained.
Arena Ticket Bank – Upon reasonable request, Mohegan Sun will provide Sponsor with a total of one hundred and eighty (180) tickets for events held at the Mohegan Sun Arena. Limit of four (4) tickets per event. Sponsor must request tickets no later than fourteen (14) days prior to event. All ticket requests are subject to availability. Complimentary Hotel Accommodation – Upon reasonable request, Sponsor shall have use of up to fifteen (15) complimentary room nights, room and tax only, at the Mohegan Sun hotel, subject to availability.
Unused accommodations can be refunded at $50 per night, at the end of the term. Arena Suite – Sponsor shall receive exclusive rights to six (6) uses of a 16-person suite in the Mohegan Sun Arena during the Term at no cost. Sponsor shall receive sixteen (16) tickets per use at no cost.
Mohegan Sun Golf Club – Sponsor shall be entitled to nine (9) complimentary rounds of golf to be used at its discretion, at the Mohegan Sun Golf Club. Free chocolate from Godiva – Sponsor shall be entitled to up to twelve (12) boxes of chocolate from Godiva, a nonaffiliated tenant of Mohegan Sun. SPONSORSHIP FEE In consideration for the sponsorship rights granted hereunder to Sponsor, Sponsor shall pay to Mohegan Sun the total sum of fifty Thousand dollars ($50,000), (“Sponsorship Fee”), which shall be paid at the time of signing of this Agreement. TERM This Agreement shall be effective as of January 1, 2020 and shall expire on December 31, 2022, unless earlier terminated by mutual agreement of the parties.
Assumptions: On January 1, 2020, Mohegan Sun (“MS”) expected 10 out of 15 hotel accommodations would be redeemed. However, MS could not reasonably predict how many arena tickets would be redeemed. MS hosts more than 30 events in arena per year. Cabaret had 20 events, 28 events, and 24 events in each of 2017, 2018, and 2019, respectively.
Standalone selling prices: Reserved Cabaret tickets $60 per ticket Arena Ticket Bank $180 per ticket Complimentary Hotel Accommodation $300 per night (inclusive of tax) Arena Suite $3,000 per event, inclusive of 16 tickets Mohegan Sun Golf Club $240 per round Free chocolate from Godiva $100 each, cost to MS is $50 each. On January 1, 2022, ABC Inc. and MS amend this agreement by adding a $500 food voucher that can be spent at MS owned restaurants in exchange for $1. The voucher is normally sold for $450 and will expire after one year. Due to low demand, the selling price of golf drops to $200 per round effective January 1, 2022. Record the entry on January 1, 2022. Answer