|
<PAGE>
EXHIBIT 10.63
FIRST AMENDMENT
TO
NAMING, PROMOTIONAL AND SPONSORSHIP AGREEMENT
Dated as of January 1, 2004
The parties to this First Amendment to Naming, Promotional and
Sponsorship
Agreement (this "Amendment") are Select Medical Corporation, a
Delaware
corporation ("Sponsor"), and Philadelphia Eagles, LLC, a
Pennsylvania limited
liability company ("Eagles").
RECITALS
A. NovaCare, Inc., a Delaware corporation ("NovaCare"), and
Philadelphia
Eagles Limited Partnership, a Delaware limited partnership
('PELP") have entered
into a Naming, Promotional and Sponsorship Agreement dated
October 1, 1997 (such
agreement, as assumed and confirmed by Sponsor pursuant to the
Assumption
referred to below, and as amended hereby, the "Naming Rights
Agreement"),
pursuant to which NovaCare obtained certain rights with respect
to the Eagles
Team. Capitalized terms used but not defined herein have the
meanings given to
them in the Naming Rights Agreement.
B. Pursuant to a Consent and Assumption dated November 19, 1999
(the
"Assumption"), Sponsor assumed and agreed to pay, perform and
discharge all of
NovaCare's liabilities and obligations under the Naming Rights
Agreement,
whether matured or unmatured, fixed or contingent, and whether
arising on or
after the date of the Assumption.
C. Eagles is the successor in interest to PELP and owns and
operates the
Eagles Team and has the right to grant sponsorship rights with
respect to the
Eagles Team.
D. Pursuant to the Eagles Lease, Eagles Stadium Operator, LLC
("ESO") has
the right to operate, and to exploit certain commercial,
advertising and related
opportunities at, the football-based stadium located at the
southeast corner of
11th Street and Pattison Avenue in Philadelphia, Pennsylvania,
currently named
Lincoln Financial Field (as such stadium may be renamed from
time to time, the
"New Stadium").
E. Sponsor and Eagles now wish to amend the Naming Rights
Agreement on the
terms set forth below.
NOW, THEREFORE, in consideration of the mutual representations,
warranties
and covenants contained herein, the parties agree as
follows:
1. Amendments to Naming Rights Agreement.
(a) Article I of the Naming Rights Agreement is hereby amended
as
follows:
(i) A new definition of "Affiliate" is added as follows:
"'Affiliate' shall mean, with respect to a specified
Person, any other Person
<PAGE>
directly or indirectly controlled by, controlling, or
under common control with the specified Person."
(ii) A new definition of "City" is added as follows: "'City'
shall mean The City of Philadelphia."
(iii) A new definition of "Commonwealth" is added as
follows:
"'Commonwealth' shall mean The Commonwealth of
Pennsylvania."
(iv) A new definition of "Eagles Lease" is added as follows:
"'Eagles Lease' shall mean the Sublease and Development
Agreement, dated December 7, 2001, between Eagles (as
successor to Philadelphia Eagles Limited Partnership, a
Delaware limited partnership) and the Philadelphia
Authority for Industrial Development ("PAID"), as
assigned, together with any amendments or replacements
thereto."
(v) The definition of "Home Game" is amended by removing and
replacing the existing definition with the following
definition: "'Home Game' shall mean any Game played at
the New Stadium."
(vi) A new definition of "Stadium Marks" is added as
follows:
"'Stadium Marks' shall mean the logos, name, trademarks,
trade names, service marks and any copyrighted design
elements of (or related to) the New Stadium."
(vii) The definition of "New Stadium" is amended by removing
and replacing the existing definition with the following
definition: "'New Stadium' shall mean the football-based
stadium located at the southeast corner of 11th Street
and Pattison Avenue in Philadelphia, Pennsylvania,
currently named Lincoln Financial Field (as such stadium
may be renamed from time to time)."
(viii) A new definition of "NovaCare Optional Services" is
added as follows: "'NovaCare Optional Services" shall
mean those physical therapy, occupational therapy,
rehabilitation, conditioning and nutritional services
requested by the Eagles pursuant to Article V.H."
(ix) A new definition of "Other Events" is added as follows:
"'Other Events' shall mean events held at the New
Stadium other than Home Games, including, without
limitation, (i) events sponsored or conducted by the
City or the Commonwealth and (ii) Private Events."
2
<PAGE>
(x) A new definition of "Private Events" is added as
follows: "'Private Events' shall mean events held at the
Stadium Premises that are not open to the general
public."
(xi) A new definition of "Stadium Premises" is added as
follows: "'Stadium Premises' shall mean the
approximately 43 acres of land located at the southeast
corner of 11th Street and Pattison Avenue, in the
Thirty-Ninth Ward of the City of Philadelphia, together
with the New Stadium."
(xii) A new definition of "Stadium Standards" is added as
follows: "'Stadium Standards' shall mean the rules,
regulations, standards, guidelines and manuals governing
the use, occupancy and operation of the New Stadium, as
established and amended by ESO from time to time."
(xiii) The definition of "Use Restrictions" is amended by
removing and replacing the existing definition with the
following definition: "'Use Restrictions' shall mean the
applicable provisions of all (i) Laws; (ii) NFL Rules;
and (iii) contractually imposed requirements of any
location, site or medium where (or through which) any
right, benefit or privilege granted to NovaCare may be
held, presented or transmitted, including the Stadium
Standards and other restrictions imposed on users or
advertisers at the New Stadium, in each case, as they
may be adopted, amended, supplemented or otherwise
changed from time to time; provided, however, that
clause (iii) shall not include any contractual
requirements applicable to the NovaCare Complex that may
adversely affect NovaCare's rights that have not been
approved by NovaCare, which approval shall not be
unreasonably withheld, conditioned or delayed."
(b) All references in the Naming Rights Agreement and this
Amendment
to "Eagles" shall be deemed to mean Philadelphia Eagles, LLC, a
Pennsylvania
limited liability company. All references in the Naming Rights
Agreement and
this Amendment to "NovaCare" shall be deemed to mean Select
Medical Corporation,
a Delaware corporation.
(c) Article III.A of the Naming Rights Agreement is amended
by
removing the words "will provide for NovaCare's benefit" and
replacing them with
the words "will provide, or cause to be provided, for NovaCare's
benefit".
(d) Article III.B(ii) of the Naming Rights Agreement is amended
by
removing and replacing the existing text in its entirety with
the following:
"(ii) the exclusive right to receive Name recognition on the
facade of the main office complex; the marquee at the
entrance
to the NovaCare Complex; the road/directional signage
leading
to the NovaCare Complex
3
<PAGE>
(to the extent Eagles control such signage); four (4)
locations in the center of the practice fields; the goal
pads
on the practice fields; the facade of the press conference
podium; permanent signage in either the Eagles Team's
conditioning room or locker room as agreed by NovaCare and
Eagles; one (1) sign on NovaCare's rehabilitation center at
the NovaCare Complex; and on all apparel worn by key
facility
(such as groundskeepers) and Training Staff. The precise
size
and location of all Name recognition described under the
preceding sentence shall be proposed by Eagles and subject
to
the approval of NovaCare, which shall not be unreasonably
withheld. All such recognition shall comply with all Use
Restrictions applicable to the NovaCare Complex and, subject
to Article XIII.B (with respect to renaming and other
changes)
and Article V.J (with respect to apparel to be provided by
NovaCare), shall be created and installed by Eagles at its
expense, except that NovaCare shall provide any required
artwork and design at its expense as and when reasonably
requested by Eagles; and"
(e) Article III.D of the Naming Rights Agreement is amended
removing
and replacing the existing text in its entirety with the
following:
"D. During the Term, the Eagles shall not grant any
Person the right to display signage on the rooftop of the
main
office complex or the indoor practice facility at the
NovaCare
Complex. If, at any time during the Term, the Eagles display
any signage on either rooftop (it being acknowledged that
such
signage may not reference any Person other than the Eagles
and
the Team), the Eagles will provide NovaCare with
commensurate
signage on such rooftop."
(f) Article III of the Naming Rights Agreement is amended by
adding
the following Article III.F and Article III.G:
"F. NovaCare acknowledges that: (a) third parties may be
granted the right to use all or a portion of the New
Stadium,
or to advertise or promote products or services at certain
Other Events, including, without limitation, the Super Bowl,
certain college or high school football games, concerts,
soccer games, major national or international championship
athletic events, (b) that during certain Other Events,
Eagles
may be required to remove, obscure, mask, cover or obstruct
(collectively, "Obscure") certain of NovaCare's advertising
at
the New Stadium if (i) reasonably necessary for the conduct
or
performance of such Other Event, (ii) required by Law during
such Other Event, (iii) reasonably necessary to meet the
religious objections of any user of the New Stadium during
such Other Event, or (iv) required by the third party user
of
the New Stadium because of exclusive sponsorship agreements
it
may have. If the New Stadium is hosting the Olympics or the
Olympic Trials, if required by the sanctioning body, (x)
Eagles may cause any of NovaCare's signage and name
recognition to be Obscured for the duration of such events
(and for a
4
<PAGE>
reasonable period before and after such events for set-up
and
break-down), but in no event shall such signage or name
recognition be Obscured during any Home Game, (y) NovaCare
shall have no right to receive certain rights, benefits and
privileges granted to NovaCare under the this Agreement with
respect to such events, and (z) NovaCare acknowledges that
third parties (including Category Competitors) may be
granted
the right to advertise or promote certain products and
services (including competing products in the Category) at
the
New Stadium during and with respect to such events. NovaCare
and Eagles acknowledge and agree that none of the foregoing
(whether or not it includes advertising for a Category
Competitor or for competing products or services in the
Category) shall be a violation of this Agreement."
"G. The precise size and location of any advertising
opportunities at the New Stadium provided pursuant to this
Agreement shall be determined by Eagles in its sole
discretion. All of NovaCare's signage and other advertising
at
the New Stadium (a) shall comply with and be subject to all
Use Restrictions applicable to the New Stadium, (b) shall be
subject to Eagles' approval rights under Article VI.B, and
(c)
subject to the following three sentences, shall be initially
created and installed by Eagles (or its designee) at Eagles'
expense (except that NovaCare shall provide any required
artwork and design, including any revisions, at NovaCare's
expense in accordance with Article VI.C. In the event
NovaCare
wishes to change, replace or reinstall any advertising sign,
such change, replacement or reinstallation shall (w) be at
NovaCare's sole cost and expense, and NovaCare shall pay all
related costs and expenses incurred by Eagles and their
respective Affiliates, (x) be performed by one or more
vendors
previously approved by Eagles for such purpose, (y) comply
with all Use Restrictions, and (z) be subject to Eagles'
approval rights in accordance with Article VI.B. All artwork
and design submitted pursuant to this Article VI.G shall be
customary for the type of sign or other display Eagles
intends
to display at the applicable location in the New Stadium.
With
respect to any advertising intended for electronic display,
NovaCare shall provide, at NovaCare's sole cost and expense,
all creative elements of such advertising (including all
software) in the form reasonably required by Eagles. Eagles
shall incorporate such creative elements into the actual New
Stadium advertising, subject to its approval rights in
accordance with Article VI.B. Eagles shall only be required
to
activate any electronic or illuminated signage during events
at the New Stadium other than Private Events."
(g) Article IV.B of the Naming Rights Agreement is hereby
amended by
removing and replacing the words "any new Stadium" in clause
(vi) and the
defined term "Veterans Stadium" in the final parenthetical with
the defined term
"the New Stadium".
(h) Clause (i) of Article VI.B of the Naming Rights Agreement
is
amended by removing and replacing the existing text in its
entirety with the
following:
5
<PAGE>
"(i) all commercials, advertisements, promotions and
other activities authorized by Eagles under this Agreement,
whether constituting a Promotion or any aspect of NovaCare
Marketing, and all proposed uses of the NovaCare Marks at
the
NovaCare Complex or the New Stadium (including as part of
the
Name) shall be subject to Eagles' review and prior approval,
which may be granted or withheld in Eagles' reasonable
discretion,"
(i) All references in the Naming Rights Agreement and this
Amendment
to "Eagles Indemnitees" shall include ESO, all other Affiliates
of Eagles, and
their respective direct and indirect, past, present and future
owners, officers,
directors, managers, members, partners, employees, licensees,
successors and
assigns.
(j) Article XVI of the Naming Rights Agreement is hereby amended
by
removing and rep
|