AGREEMENT
Confidential
treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidentiality request.
Omissions
are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.
AGREEMENT
THIS
AGREEMENT (the “Agreement”) dated March 25, 2008 by and between the New
York
Yankees Partnership,
an Ohio
limited partnership with offices at Yankee Stadium, Xxxxx, Xxx Xxxx 00000 (the
“Yankees”) and SpongeTech
Delivery Systems, Inc.,
a
___________ corporation, having offices at 00 Xxxx 00xx
Xxxxxx,
Xxxxx 000, Xxx Xxxx, Xxx Xxxx 00000 (“Sponsor”).
W
I T
N E S S E T H
WHEREAS,
Sponsor seeks and the Yankees desires to grant to Sponsor the right and license
to display certain advertising in Yankee Stadium (the “Stadium”) during the 2008
Season (as defined below) in the manner set forth below;
WHEREAS,
the parties desire to make certain other commercial arrangements as set forth
in
this Agreement to be operative during the Term (as defined below).
NOW,
THEREFORE, in consideration of the foregoing premises, the agreements,
representations and warranties, covenants and obligations hereinafter contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows:
1. |
Grant
of Rights
|
(a) Subject
to Section 12, below, and in consideration for the payment of each Season’s
Sponsorship Fee by Sponsor, the Yankees hereby grants to Sponsor the right
and
license to display each Advertisement upon the respective Signage Space in
the
manner provided in this Agreement during the 2008 Major League Baseball (“MLB”)
Season. As used herein, “Season” means the period of time commencing the day the
New York Yankees Baseball Club (“Club”) plays its first Game and ending the day
after the Club plays its last Game during the Term, but specifically excludes
any Jewel Events. As used herein, “Game(s)” means the MLB regular season home
game(s) played by the Club in the Stadium. As used herein, “Jewel Events” means
any event that MLB may designate as a “Jewel Event” including, but not limited
to, the All Star Game and postseason (i.e.,
Division Series, League Championship Series and World Series). As used herein,
“Advertisement” means any visual display advertisement, including replacement(s)
thereof, exhibited on the Signage Space by Sponsor. As used herein, “Signage
Space” means the visual display advertising space specified in Exhibit
A,
annexed
hereto. Except as otherwise agreed to, all Advertisements and electronic
materials will be produced, supplied and installed by Sponsor at its sole cost
and expense.
(b) The
Yankees reserve the right to require that each Advertisement (i) be displayed
at
and during
any
Event, even if such Event will be the subject of a broadcast (live or replay)
by
means of any media now known or hereafter developed; and (ii) not be displayed
at and during any Event if such Advertisement is prohibited by governmental
rules or regulations or by the organizers of the Event. If the Yankees
determines, in its sole discretion, that the circumstances of the Event would
require the entire or partial covering, removing, obscuring or hiding of the
Advertisement, the Yankees may use all reasonable means for accomplishing this
in a manner that would not cause any physical damage to the Advertisement.
As
used herein, “Event” means any event or multiple events that may occur or be
held in or at the Stadium including, without limitation, religious events,
sporting events (amateur or professional, including the Games), banquets,
picnics, weddings, concerts, movies, television programs and/or commercials
as
well as the occurrence of such events including, without limitation, the
creation, filming, taping, development, exhibition, broadcast, telecast,
transmission or distribution of such events by any means and media now known
or
hereafter developed. In addition, and except as otherwise set forth in this
Agreement, the Yankees will solely determine the appropriate locations for
all
Advertisements in the Stadium.
(c) Subject
to the prior written approval with respect to each such use and any other
restrictions contained in this Agreement, Sponsor is granted the limited,
non-exclusive license during the Term to use the Marks (as defined below)
throughout the Yankees’ Home Television Territory, as defined by MLB from time
to time, in print advertisements, radio and television to advertise, promote
and
market Sponsor’s relationship with the Yankees. Sponsor acknowledges that by
virtue of this Agreement it obtains no ownership right to any copyright,
trademark, trade name or similar intangible owned by or acquired by the Yankees
during the Term and it will make no use whatsoever (including in publicity
for
itself) of any of them without the Yankees’ prior, written consent. Sponsor
further acknowledges that such trademarks include, but are not limited to,
the
name “New York Yankees,” the name “Yankee Stadium,” “Yankees” (script), Yankees’
Top Hat and interlocking “NY” logos,
and any and all variations of the foregoing, together with any other marks
owned
by the Yankees, whether or not registered (the
“Marks”). Sponsor may not utilize the Marks in conjunction with any other text
or intellectual property or
content (collectively, “Content”) in
a
manner that may cause confusion in the marketplace and/or create an entirely
new
xxxx that is not protected by the Yankees current intellectual property rights.
In addition, Sponsor will make no use whatsoever (including publicity for
itself) of the names or likeness of any of the Yankees’ staff or players,
including minor league staff or players, without the prior written consent
of
the Yankees and the particular staff member or player (as the case may be).
Moreover, any photographs, copyrighted materials or other intellectual property
provided to Sponsor by
the
Yankees or its agents or representatives
in
connection with any Advertising and Sponsorship Benefits, as set forth in
Exhibit B, may only be used for commemorative and non-commercial purposes,
except as otherwise specifically set forth in this Agreement. Sponsor may not
use such Content
or the Marks
as an
endorsement and/or certification by the Yankees of Sponsor or any of its goods
and services without the Yankees prior written consent. Marks
shall not be used in combination or co-joined or co-branded with any other
names, marks, words, symbols, letters or designs not previously approved in
writing by the Yankees, which approval may be withheld or granted in the sole
and absolute discretion of the Yankees. Sponsor shall promptly notify the
Yankees upon becoming aware of any third party infringing any of the
Marks.
2
2. |
Term
|
(a) The
term
of this Agreement will commence March 31, 2008 and will terminate on November
1,
2008 (the “Term”), unless earlier terminated as provided for in this
Agreement.
3. |
Sponsorship
Fee
|
(a) In
consideration of all the rights and Advertising and Sponsorship Benefits, as
set
forth in Exhibit
B,
granted
to Sponsor by this Agreement, Sponsor agrees to provide the Yankees with a
total
sponsorship fee of [***]
($[***])
Dollars
(the “Sponsorship Fee”) which shall be due and payable as follows:
i)
|
One-fifth
(i.e.,
$[***])
of the Sponsorship Fee on each of May 1, June 1, July 1 and August
1
during the Term; and
|
ii)
|
The
remainder on or prior to September 1 of the
Term.
|
(b) The
payment specified in subsection (a), above, must be paid by wire transfer or
by
check made payable to the “New York Yankees” drawn on a New York clearinghouse
bank. Payment by check must be made to the Yankees at the address specified
in
subsection 15(a). Sponsor will be responsible for and pay any taxes, including
sales taxes, levied as a result of this Agreement, other than any income taxes
levied upon the Yankees for the Sponsorship Fee paid. The obligations contained
in this subsection (b) will survive termination and/or expiration of the
Agreement.
(c) Any
invoice sent to Sponsor is due within thirty (30) days from the date of
Sponsor’s receipt of the invoice. Should Sponsor fail to make any payment when
due, the past-due amount will bear interest at the rate of One Percent (1%)
per
month or the maximum amount permitted by applicable law. Failure to pay any
invoice when due constitutes a material breach of the Agreement entitling the
Yankees, in its sole discretion, to terminate the Agreement or withhold any
of
the Advertising and Sponsorship Benefits set forth in Exhibit
B
if not
cured as set forth in Section 10. The withholding of any Advertising and
Sponsorship Benefits as a result of Sponsor’s failure to pay any invoice is
subject and without prejudice to any claims, rights and remedies which the
Yankees may have against Sponsor.
[***]CERTAIN
INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO SUCH OMITTED PORTIONS.
3
4. |
Content
of Advertisement
|
(a) The
content and format of each Advertisement will be provided by Sponsor and
thereafter: (i) be subject to the prior written approval of the Yankees, which
approval may not be unreasonably withheld or delayed; and (ii) only market,
promote or advertise Sponsor’s products and/or services described in Section 6
below.
(b) In
the
Yankees sole judgment, the Yankees may refuse any Advertisement or element
thereof that is, among other things: (i) of poor taste; (ii) considered
repugnant by the public, or contains any material that is defamatory, obscene,
profane or offensive; (iii) includes any material that describes or depicts
any
internal bodily function or symptomatic result of internal conditions in a
repellant manner, or refers to matters that are not considered socially
acceptable topics; (iv) of a political nature or makes an appeal for funds;
(v)
not of a suitable artistic and technical quality; (vi) contains any false,
unsubstantiated or unwarranted claims for any product or services; (vii)
contains any false or misleading statement or representation or unauthenticated
testimonials; (viii) advertises any habit-forming drug, tobacco product,
distilled liquor, weapon, firearm or ammunition; (ix) may violate the rights
of
any person, entity, firm or corporation, or infringes on another Sponsor’s
rights through copyright infringement, plagiarism or unfair imitation of either
an idea or copy; (x) gives rise to any other colorable claim of infringement,
misappropriation or other form of unfair competition or includes elements of
intellectual property without the owner’s consent to such use; (xi) disparages
or libels any competitors’ products; (xii) contains any material constituting or
relating to a lottery, a contest of any kind in which the public is unfairly
treated or any enterprise, service or product that tends to encourage, abet,
facilitate or promote illegal or legal gambling (unless otherwise agreed to);
(xiii) might be injurious, prejudicial, detrimental to or be in conflict with
the interests of the public, the Yankees, the Office of the Commissioner of
MLB
or honest advertising and reputable business in general; or (xiv) reasonably
determined by the Yankees to directly or indirectly disparage or derogate the
Yankees or any of its affiliates or portray the Yankees or any of its affiliates
in a false, competitively adverse or poor light; or that adversely diminishes
the value of the Yankees or any of its affiliates.
5. |
Installation
and Replacement
|
(a) Sponsor
is responsible for any and all actual and reasonable charges, costs and expenses
including those directly related to the installation, fabrication, insertion,
erection, development and/or affixation of the Advertisement on the Signage
Space (the “Installation”). Sponsor must pay to or on behalf of the Yankees any
and all charges, costs and expenses related to the Installation no later than
seven (7) days following the Yankees’ request.
(b) In
the
event Sponsor desires to change or substitute any Advertisement, Sponsor must:
(i) submit all samples, copies, camera ready artwork and/or digital displays
for
such Advertisement to the Yankees for approval in accordance with and subject
to
Section 4 above; and (ii) be responsible for any and all Installation charges,
costs and expenses for such Advertisement.
4
(c) The
Installation of any Advertisement may only occur when the Club is not playing
in
the Stadium and must comply with all applicable laws, regulations and
ordinances. The Installation may only occur at a time and in a manner that
is
acceptable to the Yankees’ Stadium Operation department and will occur under the
direction thereof. Sponsor further agrees that the Installation will not require
the Signage Space to be cut, drilled, built into, disfigured or otherwise
damaged or modified.
6. |
Products
to be Advertised
|
(a) The
written and graphic content of the Advertisement will be limited to the
following products and/or services (the “Product Category”): Car
Care.
(b) Sponsor
will not use the Signage Space for commercial or other announcements unrelated
to the "SpongeTech” brand in the Product Category, or to advertise or provide
information concerning any person, entity, product or service other than
“SpongeTech” and the “SpongeTech” brand in the Product Category. Each Signage
Space may not advertise more than one Product Category. Furthermore, Sponsor
may
not co-op, resell, sublease or otherwise grant any right to any Advertisement,
or portion thereof, to any person or entity that is not a party to the
Agreement.
7. |
Advertising
and Sponsorship
Benefits
|
In
full
consideration for Sponsor’s payment of the Sponsorship Fee and compliance with
all the terms and conditions of this Agreement during the Term, Sponsor will
receive the advertising and sponsorship benefits set forth in Exhibit
B
(the
“Advertising and Sponsorship Benefits”).
8. |
Representations
and Warranties
|
(a)
The
Yankees represents and warrants to Sponsor as follows:
(i) it
is a
limited partnership duly organized, validly existing and in good standing under
the laws of the State of Ohio;
(ii) this
Agreement has been duly executed and validly delivered and, subject to Section
12, constitutes a valid and binding obligation legally enforceable against
the
Yankees in accordance with its terms;
(iii) the
execution and delivery of this Agreement by the Yankees and the performance
of
its obligations hereunder are not in violation of, and do not conflict with
or
constitute a default under, any of the terms and provisions of its limited
partnership agreement or any agreement, indenture or instrument by which it
is
bound, or any law, regulation, order, decree, judgement or award to which it
is
subject and aware;
5
(iv) it
has
the legal right, power, authority and capacity to execute, deliver and perform
this Agreement; and
(v) that
it
shall comply with all applicable federal, state and local laws, rules
and
regulations in carrying out its obligations hereunder.
(b)
Sponsor
represents and warrants to the Yankees as follows:
(i) it
is a
corporation duly organized, validly existing and in good standing under the
laws
of the state of ____________;
(ii) this
Agreement has been duly executed and validly delivered and constitutes a valid
and binding obligation legally enforceable against it in accordance with its
terms;
(iii) the
execution and delivery of this Agreement by Sponsor and the performance of
its
obligations hereunder are not in violation of its organizational documents
or
bylaws, and do not conflict with or constitute a default under, any of the
terms
or provisions of or any agreement, indenture or instrument to which it is bound,
or any law, regulation, order, decree, judgment or award to which it is subject
and aware;
(iv) it
has
the legal right, power, authority and capacity to execute, deliver and perform
this Agreement;
(v) neither
the Advertisements, Promotional Items nor any of their respective
elements,
content
or
material will: (1) infringe on or violate any person’s or entity’s rights of
privacy or publicity or other personal property right of any other third party;
(2) libel, slander or otherwise defame or disparage any third party; (3)
violate that
party’s
copyright, trademark, service xxxx,
trade
dress
or moral
rights; or (4)
violate
any other applicable law;
and,
except with respect to Marks licensed hereunder, that Advertiser has all right,
title and interest in and to each Advertisement created by or for
Sponsor,
(vi)
it
will
maintain in good standing its qualification to do business in the State of
New
York and in every other jurisdiction in which the failure to be so qualified
or
authorized to do business could have a material adverse effect on this Agreement
and will comply in all material respects with all applicable governmental laws,
rules, regulations and orders; and
(vii) it
possess all rights, licenses and clearances to distribute (as well as permit
the
Yankees to distribute) the Promotional Item(s) during the Promotional
Day.
6
(c) Sponsor
further covenants and agrees as follows:
During
and following the Term of this Agreement, Sponsor shall not:
(i) infringe
upon, harm or contest the rights of the Yankees in or to any of the
Marks;
(ii) adopt
or
seek to register or take any action to use or establish rights in any name,
xxxx, word, symbol, letter or design which is confusingly similar to the Marks;
or
(iii) attack
or
perform any action, direct or indirect, which might challenge, impair or
otherwise affect the validity of the Marks or the Yankee’s ownership
thereof;
9. |
Right
to Terminate and/or
Amend
|
(a) The
Yankees has the right to terminate and/or amend this Agreement upon thirty
(30)
days’ prior written notice to Sponsor if:
(i) the
Yankees desires, at any time during the Term, to change, structurally alter
or
demolish the Stadium in a manner which would require the removal or obstruction
of the Advertisements;
(ii) the
Club
relocates from the Stadium;
(iii) the
Yankees sell naming rights, “Premier Partner” rights, or an equivalent, to the
Stadium; or
(iv)
the
Yankees, in its reasonable discretion, determines that the continued association
with Sponsor will be injurious to the goodwill and reputation of the
Yankees.
(b) In
the
event the Yankees exercises the right to terminate the Agreement as set forth
herein, the Sponsorship Fee will be adjusted by refunding to Sponsor a pro
rata
portion of the Sponsorship Fee paid. Such refund will be equal to the product
obtained by multiplying (i) the number of home games following the date of
the
termination of this Agreement by (ii) the Sponsorship Fee divided by 81.
(c) In
the
event the Yankees exercises its right to amend the Agreement as set forth
herein, the Sponsorship Fee will be adjusted by refunding to Sponsor the pro
rata portion of Sponsorship Fee paid for the affected Advertising and
Sponsorship Benefits. Such refund will be equal to the product obtained by
multiplying (i) the number of home games following the date of amendment of
this
Agreement by the Sponsorship Fee divided by 81.
7
10. |
Default;
Termination
|
(a)
Sponsor
will be in default of this Agreement if:
(i) it
fails
to timely pay the Yankees the Sponsorship Fee when due (as described in Section
3(c), or any other amount due under this Agreement, and such failure continues
for a period of thirty (30) business days after notice has been sent to Sponsor
of the amount due;
(ii) it
either
voluntarily files for bankruptcy, receivership, insolvency, reorganization,
dissolution, liquidation or any similar proceedings, as applicable, or
involuntarily has a proceeding instituted against it and such proceeding is
not
dismissed within thirty (30) days;
(iii)
it
makes
a general assignment for the benefit of creditors;
(iv) it
is in
material breach of this Agreement and such breach is not cured within thirty
(30) days of a notice specifying the breach; provided, however, the Yankees,
in
its sole discretion, may agree to a longer cure period if such breach cannot
be
cured within thirty (30) days but Sponsor has commenced action to effect such
cure within the thirty (30) day period and thereafter is diligently pursuing
the
same. If Sponsor fails to cure the default by the end of the thirty (30) days
or
a longer cure period, as agreed to by the Yankees, then:
(i) this
Agreement and the rights granted and licensed to Sponsor herein will terminate;
and
(ii) Sponsor
will not receive a refund of any portion of the Sponsorship Fee and will be
responsible for all costs and expenses related to the removal of the
Advertisements.
(b) Unless
otherwise specified and other than under the circumstances set forth in
subsection (a)(iv) above, if Sponsor is in default of this Agreement, the
Yankees will provide written notice (the “Default Notice”) to Sponsor stating
that this Agreement will expire and terminate on a specific date, which date
will not be less than ten (10) days after the date of the Default Notice (the
“Termination Date”). If Sponsor fails to cure the default by the Termination
Date, then:
(i) this
Agreement and the rights granted and licensed to Sponsor herein will terminate;
and
(ii) Sponsor
will not receive a refund of any portion of the Sponsorship Fee and will be
responsible for all costs and expenses related to the removal of the
Advertisements.
(c) Notwithstanding
the provisions of this Section, in the event that, pursuant to the Bankruptcy
Code, a trustee of Sponsor or Sponsor as debtor-in-possession is permitted
to
assume this Agreement and does so and, thereafter, desires to assign this
Agreement to a third party, which assignment satisfies the requirement of the
Bankruptcy Code, the trustee or Sponsor, as the case may be, must notify the
Yankees of the terms of such proposed assignment in writing. The giving of
such
notice will constitute an offer to the Yankees to have this Agreement assigned
to it or to its designee for the consideration, or its equivalent in money,
and
upon such terms, as is specified in the notice. This offer may be accepted
only
by written notice to the trustee or Sponsor, as the case may be, by the Yankees
within fifteen (15) days of the Yankees’ receipt of notice from the trustee or
Sponsor. If the Yankees fails to give its notice to the trustee or Sponsor
within fifteen (15) days, the trustee or Sponsor may complete the assignment
referred to in its notice, but only if such assignment is to the entity named
in
the notice and for the consideration and upon the terms specified therein.
Nothing contained herein will preclude or impair any rights which the Yankees
may have as a creditor in any proceeding.
8
(d)
The
Yankees will be in default of this Agreement if:
(i)
it is
in material breach of this Agreement and such breach is not cured within thirty
(30) days of a notice specifying the breach; provided, however, Sponsor, in
its
sole discretion, may agree to a longer cure period if such breach cannot be
cured within thirty (30) days but the Yankees has commenced action to effect
such cure within the thirty (30) day period and thereafter is diligently
pursuing the same.
(e) If
the
Yankees are in default of this Agreement, Sponsor will provide written notice
(the “Default Notice”) to the Yankees stating that this Agreement will expire
and terminate on a specific date, which date will not be less than ten (10)
days
after the date of the Default Notice (the “Termination Date”). If the Yankees
fail to cure the default by the Termination Date, then:
(i) this
Agreement and the rights granted and licensed to Sponsor herein will terminate;
and
(ii) Sponsor
will receive a pro-rata refund of any portion of the Sponsorship Fee paid.
11. |
Indemnification
|
(a) Each
party (“Indemnitor”) agrees to indemnify, defend and hold harmless the other
party, including such party's partners, parent and affiliated and subsidiary
companies, and each of their respective directors, officers, employees and
agents (each an “Indemnitee”) from and against, and to reimburse such Indemnitee
with respect to, any and all losses, damages, liabilities, costs or expenses
(including reasonable attorneys’ and professionals’ fees and disbursements)
arising out of or in connection with any breach or alleged breach of this
Agreement, any covenant
herein contained, any representation
made in it (including, without limitation, any claims by a third party that
the
exercise of the rights of a party to this Agreement in accordance with its
conditions and limitations infringes that third party’s rights) or any personal
injuries or property damage caused by the negligence or intentional acts of
the
Indemnitor or by its employees, representatives or agents. Without
limiting the generality of the foregoing,
Sponsor
agrees to indemnify, defend and hold harmless the Yankees, including the
Yankees’ partners, parent and affiliated and subsidiary companies, and each of
their respective directors, officers, employees and agents (each a “Yankees
Indemnitee”) from and against, and to reimburse such Yankees Indemnitee with
respect to, any and all third party claims, losses, damages, liabilities, costs
or expenses (including reasonable attorneys’ and
professional fees and
disbursements) arising out of or in connection with any (i) unauthorized use
of
the Marks, (ii) alleged or actual false advertising, fraud, misrepresentation,
libel, slander, illegal competition or trade practice, infringement of
trademarks, trade names or titles, violations of rights of privacy or publicity,
or infringement of copyrights or other proprietary and intellectual property
rights resulting from or arising out of or in connection with any Advertisement
or brochure, and (iii)
any
personal injury or property damage sustained by third parties caused or
occasioned by the negligence or intentional acts of Sponsor’s guests or invitees
or any user of any Loge Hall of Fame Suite Tickets or Game tickets provided
to
Sponsor pursuant to this Agreement. Notwithstanding
anything contained in this Agreement to the contrary, in the event that damage
to the Stadium results or arises out of the acts or omissions of Sponsor, its
agents, representatives, or invitees hereunder, the Sponsor’s indemnification
obligations under this Section 11 shall include, but not be limited to, any
indirect, consequential, or special damages (including lost profits or lost
opportunities) incurred by the Yankees or any Yankees Indemnitee.
9
(b) The
Indemnitee must give the Indemnitor notice of any matter which the Indemnitee
has determined has given or could give rise to a right of indemnification,
within thirty (30) days of such determination, stating the amount of the loss,
if known, and method of computation thereof, and containing a reference to
the
provisions of this Agreement in respect of which such right of indemnification
is claimed or arises (the “Indemnification Notice”); provided,
however,
the
failure to provide the Indemnification Notice will not release the Indemnitor
from any of its obligations under this Section except to the extent the
Indemnitor is materially prejudiced by such failure and will not relieve the
Indemnitor from any other obligation or liability that it may otherwise have
to
the Indemnitee. The Indemnitee must allow the Indemnitor the option to
participate in and, at the Indemnitor’s option, fully control any compromise,
settlement, litigation or other resolution of the claim or litigation, but
the
Indemnitor must not make any agreement that prospectively compromises or limits
the Indemnitee’s substantive rights without the Indemnitee’s prior written
consent (which consent will not be unreasonably withheld). The Indemnitee must
cooperate with the Indemnitor in the defense and make available to the
Indemnitor, at the Indemnitor’s expense, all witnesses, pertinent records,
materials and information in the Indemnitee’s possession or under the
Indemnitee’s control relating thereto as is reasonably required and requested by
the Indemnitor. In no case will any compromise or limitation implicate rights,
obligations or property beyond the subject matter of this Agreement. Without
limiting the generality of the foregoing, if the Indemnitor fails or refuses
to
assume the defense of any claims, action or cause of action to which its
indemnity applies (whether or not suit has formally been brought), the
Indemnitor will be responsible for payment of any settlement of such claim,
action or cause of action reached by the Indemnitee, as well as the costs and
expenses (including reasonable attorneys’ and professionals’ fees) incurred by
the Indemnitee in defending such claim, action or cause of action and/or in
reaching such settlement.
(c)
This
indemnification provision is in addition to, and not in lieu of, any remedy
either party may have for breach of this Agreement, and will survive the
termination or expiration of this Agreement.
10
(d) If
either
party brings an action against the other to enforce any provision of this
Agreement, the prevailing party may recover its reasonable attorneys’ and/or
professionals’ fees in addition to any other remedy it may have.
(e) Each
party warrants and represents that it has, or will secure, prior to the
Installation and will maintain during and for at least three years following
the
Term of this Agreement:
(i) worker’s
compensation coverage (including employment liability insurance) covering all
persons employed by it in connection with the Advertisement and Installation
which is sufficient under the laws of the State of New York; and
(ii) commercial
general liability insurance (including advertising injury coverage) having
a
limit of at least $1,000,000.00 for bodily injury and property damage combined
per occurrence for any one person and a limit of at least $3,000,000.00 for
injuries in the aggregate for all claims of bodily injury and property damage
combined.
(f) All
such
insurance must be issued by reputable insurers rated A or better by A.M. Best
and Co., contain commercially reasonable deductibles and the commercial general
liability insurance must cover the other party as an additional insured. Either
party must provide the other with evidence of such insurance upon the request
of
the other party throughout the Term. The liability insurance coverage will
be
considered primary and noncontributory with respect to any similar insurance
carried by the additional insureds.
12. |
MLB
Subservience
|
Notwithstanding
any other provision of this Agreement:
(a) This
Agreement and the rights, exclusivities and protections granted by the Yankees
to Sponsor hereunder will be subject to the prior written approval of MLB and
will in all respects be subordinate to, and will not prevent the issuance,
entering into, or amendment of, any of the following, each as may be issued,
entered into or amended from time to time (collectively, the “MLB Documents”):
(i) any present or future agreements or arrangements regarding the telecast,
broadcast, recording (audio or visual), or other transmission or retransmission
(including, but not limited to, transmission via the Internet or any other
medium of interactive communication, now known or hereafter developed) of MLB
games, and/or the accounts and descriptions thereof, entered into with third
parties by any of MLB, MLB Enterprises, Inc., MLB Properties, Inc., and/or
any
of their respective present or future affiliates, assigns or successors
(collectively, the “MLB Entities”), either on its own behalf or on behalf of the
MLB Clubs and/or other MLB Entities; (ii) any other present or future agreements
or arrangements entered into with third parties by, or on behalf of, any of
the
MLB Entities, including, without limitation, those relating to ticketing,
e-commerce, and/or the exploitation of intellectual property rights in any
medium, including the Internet or any other medium of interactive communication;
(iii) any present or future agreements or arrangements entered into by the
Yankees with the other MLB Clubs and/or one or more of the MLB Entities
(including, without limitation, the Major League Constitution and each agency
agreement and operating guidelines among the MLB Clubs and an MLB Entity);
and
(iv) the applicable rules, regulations, policies, bulletins or directives issued
or adopted either by MLB or otherwise pursuant to the Major League Constitution
or any such agency agreement. The Yankees and Sponsor will each comply with
all
applicable terms, conditions and requirements contained in the MLB Documents
with respect to the subject matter of this Agreement.
11
(b) No
rights
granted by the Yankees herein relate to the advertising or promotion of any
on-line system, computer network or Interactive Media-related services or other
on-line specific goods, services or brands. For purposes of this Agreement,
“Interactive Media” means (i) the Internet or any other on-line system or
computer network; (ii) any interactive wireless service, including any
interactive microwave or cellular service; (iii) any interactive satellite
service; (iv) any interactive broadcast television, broadcast radio or cable
television service; and (v) any other medium of interactive communication now
known or hereafter devised. Furthermore, no rights, exclusivities or obligations
involving the Internet or any on-line media (as defined by MLB Entities) are
conferred by this Agreement and it is expressly understood and agreed that
Sponsor will have no rights to any sponsorship benefits with respect to any
Interactive Media and any Yankees’ Internet web-site, including, without
limitation, xxx.xxxxxxx.xxx, or any MLB Internet web-site or any web-site of
any
affiliate of the Yankees or MLB or any future Internet site affiliated with
or
designated by the Yankees or MLB. It is further understood and agreed that
the
Agreement does not grant Sponsor the right or license to utilize the Marks
in
connection with any Interactive Media, including, without limitation, Sponsor’s
Internet site or any current or future Internet site affiliated or not
affiliated with Sponsor.
(c) The
Sponsor acknowledges that MLB Advanced Media (“MLBAM”) controls the Yankees’
Internet site, including the ability to sell sponsorships and/or advertisements
(e.g.,
banner
advertisements, pop-up advertisements, etc.) thereon as well as the ability
to
authorize the use of the Marks in connection with any Interactive Media (the
“Internet Sponsorship Package(s)”). As such, MLBAM may sell an Internet
Sponsorship Package to Sponsor’s competitor(s). Notwithstanding the foregoing,
the Sponsor may be provided with a limited “last look” opportunity to buy out
the Internet Sponsorship Package, but only in certain (not all) product
categories (as may be defined by MLBAM, from time to time) (the “MLBAM Product
Categories”). In connection with this limited right, MLBAM will notify the
Yankees whenever a proposed Internet Sponsorship Package is offered to a
prospective MLBAM sponsor and, if the Internet Sponsorship Package is within
the
MLBAM Product Categories, permit the Sponsor the option to match and/or buy
out
the Internet Sponsorship Package (“Internet Matching Option”), which if
exercised and paid for by Sponsor, would entitle Sponsor to the relevant
Internet Sponsorship Package (which may or may not include any exclusivity
and/or right of last refusal). In the event the Sponsor does not timely exercise
the Internet Matching Option or does not match/buy out the Internet Sponsorship
Package, then MLBAM would be free to sell the Internet Sponsorship Package
to
the prospective MLBAM sponsor. The Sponsor does not have the Internet Matching
Option for Internet Sponsorship Packages offered to the prospective MLBAM
sponsors in product categories outside the MLBAM Product Categories. Any actions
taken by MLBAM in connection with the Yankees’ Internet site including, without
limitation, the sale of Internet Sponsorship Packages to competitors of Sponsor
will not constitute a default of the Agreement by the Yankees.
12
(d) The
territory of this Agreement, and all rights, licenses and sponsorship benefits
granted hereunder, is limited to the Yankees’ Home Television Territory, as
established and amended from time to time pursuant to the MLB Documents. This
Agreement does not grant Sponsor any rights or sponsorship benefits outside
of
the Yankees’ Home Television Territory. Any attempt by Sponsor to exercise any
rights or sponsorship benefits outside the Yankees’ Home Television Territory
constitutes a material breach of this Agreement.
(e) The
Yankees have the right, at no cost or liability to it or any other club or
MLB
Entity, to terminate this Agreement at any time the Sponsor breaches its
obligations under subsections (a) through (d), above. The right to terminate
is
exercisable by delivering written notice to the Sponsor within thirty (30)
days
after the Yankees obtains actual knowledge that such breach has occurred and
the
effective date of such termination will be no more than thirty (30) days after
the date such notice is given, as specified by the Yankees in such notice.
(f) The
parties recognize that the Yankees are subject to the MLB Documents. The parties
agree and intend that this Agreement and the activities of each of them in
connection with this Agreement must conform to and comply with the terms and
restrictions of the MLB Documents, and that they will not undertake any
activities that are prohibited by the MLB Documents. If the rights, obligations
or benefits of any party to this Agreement are required to be modified, revised,
restricted or terminated because of the MLB Documents, this Agreement will
be
modified to the extent necessary to bring it into conformity with the MLB
Documents and, as revised, this Agreement will remain in full force and effect,
with each party obligated to perform its obligations and entitled to receive
its
benefits under this Agreement as revised. In the event that the modification(s),
revision(s), restriction(s) or termination of this Agreement pursuant to the
MLB
Documents decreases the value of the rights granted to Sponsor hereunder, the
parties will negotiate in good faith to adjust the terms of the Agreement to
provide Sponsor with a reasonable make-good for such decrease.
13. |
Limitation
of Liability; Disclosure of
Warranties
|
(a) EXCEPT
AS EXPRESSLY PROVIDED FOR IN SECTION 11 OF THIS AGREEMENT, NEITHER PARTY SHALL
BE LIABLE TO THE OTHER PARTY HEREUNDER FOR ANY PUNITIVE, INDIRECT, SPECIAL
OR
CONSEQUENTIAL DAMAGES (UNDER ANY THEORY OF LAW), INCLUDING DAMAGES FOR LOST
REVENUE, LOST PROFITS OR OTHER ECONOMIC DAMAGE, EVEN IF IT HAS BEEN ADVISED
OF
OR HAS FORESEEN THE POSSIBILITY OF SUCH DAMAGES, UNLESS SUCH DAMAGES ARISE
FROM
GROSS NEGLIGENCE, WILFULLNESS OR FRAUD.
13
(b) EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PARTIES DISCLAIM ALL EXPRESS
AND
IMPLIED WARRANTIES, INCLUDING THE IMPLIED WARRANTY OF MERCHANTABILITY, THE
IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR USE AND THE IMPLIED
WARRANTY OF NONINFRINGEMENT.
14. |
Notices
|
All
notices, requests, claims, demands and other communications must be in writing
and shall be duly given on the date of delivery, if transmitted by a nationally
recognized courier service or by facsimile (provided a copy of such facsimile
is
also sent at the time of such facsimile transmission to the recipient by any
other means permitted hereunder), so as to be received during the hours of
8:00
AM to 5:00 PM, Monday through Friday, or on the date of receipt, if mailed
to
the person to whom notice is to be given by certified or registered mail,
postage prepaid, and properly addressed to the addresses set forth above or
such
other address as may be set forth in written notice of change of address
transmitted in the manner set forth in this Section 14.
(a)
|
If
to the Yankees:
|
|
New
York Yankees
|
||
Yankee
Stadium
|
||
Xxxxx,
Xxx Xxxx 00000
|
||
Attention:
|
Xxxx
X. Xxxxx, Esq.
|
|
Chief
Operating Officer
|
||
Phone:
|
(000)
000-0000
|
|
Facsimile:
|
(000)
000-0000
|
|
(b) |
If
to Sponsor:
|
|
SpongeTech
Delivery Systems, Inc.
|
||
00
Xxxx 00xx Xxxxxx, Xxxxx 000
|
||
Xxx
Xxxx, Xxx Xxxx 00000
|
||
Attention:
|
Xxxxxx
Xxxxxxxxx
|
|
Chief
Operating Officer
|
||
Phone:
|
(000)
000-0000
|
|
Facsimile:
|
(___)
___-____
|
15. |
General
Provisions
|
(a) Separability.
In case any one or more of the provisions contained in this Agreement or any
application thereof shall be deemed invalid, illegal or unenforceable in any
respect, such affected provisions shall be construed and deemed rewritten so
as
to be enforceable to the maximum extent permitted by law, thereby implementing
to the maximum extent possible, the intent of the parties hereto, and the
validity, legality and enforceability of the remaining provisions contained
in
this Agreement shall not in any way be affected or impaired
thereby.
14
(b)
Waiver.
Any breach of any term or provision of this Agreement shall be waived only
by
means of a writing signed by the non-breaching party hereto which sets forth
with particularly the breach being waived and the scope of the waiver. Any
waiver of any term or condition of this Agreement shall not be construed as
a
waiver of any subsequent breach or a subsequent waiver of the same term or
condition, or a waiver of any other term or provision of this Agreement. No
waiver shall be implied from any conduct or action of the non-breaching party
hereto. The failure of either party hereto in asserting any of its rights
hereunder shall not operate as a waiver of any such rights.
(c) Entire
Agreement. This Agreement and Exhibit A and Exhibit B, annexed
hereto, constitute the entire agreement and understanding between the parties
hereto with respect to the subject matter hereof and supersede all prior
agreements and understandings, both written and oral, of the parties hereto
regarding the subject matter of Agreement. This Agreement and Exhibit A
and Exhibit B, annexed hereto, may be amended only by means of a written
agreement executed by each of the parties hereto.
(d) Binding
Effect; Assignment. This Agreement shall be binding upon, and shall inure to
the benefit, of the respective successors and permitted assigns of the parties
hereto.
This
Agreement and all obligations of the parties are binding upon the successors
and
permitted assigns of the parties. This Agreement will inure to the benefit
of
and be enforceable by the parties and their successors and permitted assigns.
Neither party may assign or otherwise transfer its rights or obligations under
this Agreement without the prior written consent of the other party; provided,
however, the Yankees may assign or otherwise transfer this Agreement to any
affiliate of the Yankees and/or in connection with the sale or transfer (by
merger, consolidation or otherwise) by the Yankees of all or substantially
all
of the Yankees’ assets. In the event Sponsor is authorized to assign this
Agreement, and actually assigns this Agreement, Sponsor will nevertheless remain
fully bound and liable under this Agreement.
(e) Signatures.
This Agreement may be executed and delivered via telecopier machine or other
form of electronic delivery by the parties hereto, which shall be deemed for
all
purposes as an original.
(f)
Specific
Performance; Remedies. Each of the parties hereto acknowledges and agrees
that its respective remedies at law for a breach or threatened breach of any
of
the provisions of this Agreement would be inadequate and, in recognition of
that
fact, agrees that, in the event of a breach or threatened breach by a party
hereto of the provisions of this Agreement, in addition to any remedies at
law,
the other party hereto shall, without posting any bond, be entitled to obtain
equitable relief in the form of specific performance, a temporary restraining
order, a temporary or permanent injunction or any other equitable remedy which
may then be available. No remedy herein conferred or reserved is intended to
be
exclusive of any other available remedy or remedies, and each and every remedy
shall be cumulative and shall be in addition to every remedy under this
Agreement or now or hereafter existing at law or in equity.
15
(g)
Waiver
of Jury Trial. EACH
PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY
IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF, OR RELATING TO, THIS AGREEMENT OR THE ACTIONS OF
THE
PARTIES TO THIS AGREEMENT IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND
ENFORCEMENT HEREOF. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF THE OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 15.
(h)
Third
Party Beneficiaries. The provisions of this Agreement are not intended to be
for the benefit of any creditor, person or other entity (other than MLB) to
whom
any debts, liabilities, or obligations are owed by (or who otherwise has any
claim against) the Sponsor or any related party; and no such creditor, person
or
other entity shall obtain any benefit from such provisions or shall, by reason
of any such foregoing provision, have any claim in respect of any debt,
liability, or obligation against the Yankees or any related party.
(i) Applicable
Law; Jurisdiction.
THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW YORK WITHOUT REGARD
TO
CONFLICT OF LAW RULES APPLIED IN SUCH STATE. EACH PARTY HERETO IRREVOCABLY
AGREES THAT ANY LEGAL ACTION, SUIT OR PROCEEDING AGAINST THEM ARISING OUT OF
OR
IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
DISPUTES RELATING HERETO (WHETHER FOR BREACH OF CONTRACT, TORTIOUS CONDUCT
OR
OTHERWISE) SHALL BE BROUGHT EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT
FOR
THE SOUTHERN DISTRICT OF NEW YORK, OR, IF SUCH COURT DOES NOT HAVE SUBJECT
MATTER JURISDICTION, THE STATE COURTS OF NEW YORK LOCATED IN BRONX COUNTY AND
HEREBY IRREVOCABLY ACCEPTS AND SUBMITS TO THE EXCLUSIVE JURISDICTION AND VENUE
OF THE AFORESAID COURTS
IN PERSONAM, WITH RESPECT TO ANY SUCH ACTION, SUIT OR PROCEEDING, AND WAIVES
ANY
CLAIM THAT SUCH FORUM IS INCONVENIENT OR ANY SIMILAR CLAIM.
IN
THE EVENT THAT A PARTY COMMENCES ANY ACTION AGAINST THE OTHER PARTY IN ANOTHER
JURISDICTION OR VENUE IN RESPECT OF ANY SUCH DISPUTE, SUCH OTHER PARTY SHALL
BE
ENTITLED, AT ITS OPTION, TO HAVE THE ACTION TRANSFERRED TO ONE OF THE
JURISDICTIONS AND VENUES DESCRIBED IN THIS SUBSECTION (i)
OR
IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH
ACTION DISMISSED WITHOUT PREJUDICE. EACH
PARTY AGREES THAT A FINAL JUDGMENT IN ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN SUCH COURT, AFTER ALL APPROPRIATE APPEALS, IS CONCLUSIVE AND BINDING
UPON IT.
16
(j) Service
of Process.
EACH OF THE PARTIES HERETO HEREBY ACKNOWLEDGES AND CONFIRMS THAT SERVICE OF
ANY
PROCESS, SUMMONS, NOTICE OR DOCUMENT BY U.S. REGISTERED MAIL TO, IN THE CASE
OF
THE YANKEES, THE ADDRESS SET FORTH IN SECTION 15 OF THIS AGREEMENT OR, IN THE
CASE OF THE SPONSOR, TO SPONSOR’S REGISTERED AGENT FOR SERVICE OR PROCESS IN THE
STATE OF NEW YORK SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT
OR
PROCEEDING IN NEW YORK WITH RESPECT TO ANY MATTERS FOR WHICH IT HAS SUBMITTED
TO
JURISDICTION PURSUANT TO SUBSECTION 15(i) OF THIS AGREEMENT AND WILL TO THE
FULLEST EXTENT ENFORCEABLE BY LAW, BE VALID PERSONAL SERVICE UPON AND PERSONAL
DELIVERY TO IT.
(k) Dispute
Resolution.
In the
event of any dispute with regard to the interpretation of this Agreement or
the
respective rights and obligations of the parties, and as a condition precedent
to any legal action, arbitration or alternative dispute resolution proceeding
being commenced by either party, a representative of the parties will attempt
in
good faith to resolve the parties’ differences. If after three (3) business days
they are unable to resolve the parties’ differences, the dispute will be
referred to the General Counsel (or a similarly situated person) of each party,
who will meet in person and attempt in good faith to resolve the dispute. If
the
dispute is then not resolved within five (5) business days, then the parties
may
agree to arbitration or may file an action to be resolved in the Courts of
the
State of New York, by non-binding arbitration at the offices of the American
Arbitration Association (the "AAA") in New York, New York under the Commercial
Arbitration Rules of the AAA then in effect or by any other alternative dispute
resolution proceeding. The Yankees’ determination in this regard is absolute
even in the event arbitration or another form of alternative dispute resolution
is favored or instituted by the Sponsor.
(l) Force
Majeure.
Neither
party will be liable to the other because of any failure to perform any part
of
this Agreement because of fire, earthquake, rain, flood, acts of terrorism,
or
any other acts of God, power failures, electrical or mechanical difficulties,
strikes (including any interruption of the playing of major league baseball,
regardless of the cause), lockout, work stoppages or other labor disturbances,
governmental regulations or restrictions, or any other cause or condition,
whether similar or dissimilar to any of the foregoing, beyond the reasonable
control of the Yankees or Sponsor. Any delay in the performance of this
Agreement by acts of God or other causes beyond the control of the Yankees,
or
because of any strike, sympathy strike, lockout, work stoppage, picketing,
damage or concerted action by an employee or any labor organization will not
constitute a breach of this Agreement or a ground for cancellation, suspension
or termination hereof. Any non-display of any Advertisement due to maintenance
thereof will not constitute a breach of this Agreement or a ground for
cancellation, suspension or termination hereof or entitle Sponsor to a credit,
make good or rebate of any kind.
(m) Relationship
of Parties.
Nothing
in this Agreement will create any association, partnership, joint venture or
agency relationship between the parties. All persons employed by Sponsor in
connection with its performance under this Agreement will be Sponsor’s employees
and Sponsor will be fully responsible for them, except as otherwise explicitly
provided in this Agreement. Likewise, all persons employed or engaged by the
Yankees will be employees or contractors of the Yankees and the Yankees will
be
fully responsible for them.
17
(n) Survival.
The
parties agree that the representations and warranties contained in this
Agreement will survive the termination of this Agreement.
(o) Sophisticated
Commercial Party.
Each
party to this Agreement represents that it is a sophisticated commercial party
capable of understanding all of the terms of this Agreement, that it has had
an
opportunity to review this Agreement with its counsel, and that it enters this
Agreement with full knowledge of the terms of this Agreement.
(p) Confidential
Information.
Each of
the parties hereto acknowledges and agrees that the terms of this Agreement
and
all Exhibits hereto and all information imparted to or learned by such party
from the other in connection with or pursuant to the Agreement and all Exhibits
hereto or any rights and obligations associated with any of the foregoing,
including, but not limited to, any estimates, budgets, proposals, projections,
financial settlements, physical or medical information or other documents
prepared in connection with the relationship proposed in the Agreement, is
confidential to the extent such information was not obtained through other
lawful means. Each party agrees that such party will not, unless specifically
consented to in writing in advance by the other party concerned, divulge,
transmit or otherwise disclose any confidential information to any person or
entity, except when disclosure is (i) appropriate in order to protect the rights
of such party in the event of a default or breach by the other party; (ii)
required by the MLB Documents; (iii) for either party’s attorneys, accountants,
bankers, consultants and/or investment bankers; and (iv) with respect to any
offerings of debt and/or equity by the Yankees or their past, present and future
subsidiaries, parent and sister corporations, limited liability companies,
partnerships, affiliates and successors and the like, by
any
means or media whatsoever and each party agrees that such party will not use
any
confidential information other than in such party’s performance of duties under
the Agreement. Except
to
the extent required by law, each party will take all reasonable steps to protect
the confidentiality of this Agreement,
(q) Interpretation.
All pronouns and any variation thereof shall be deemed to refer to the
masculine, feminine or neuter, singular or plural, as the identity of the entity
or entities may require. All references to a “Section” shall mean Section of the
Agreement, unless the context otherwise requires.
(r) Further
Assurances. Each party hereto shall execute, acknowledge, deliver, file and
record such further certificates, amendments, instruments and documents, and
to
do all such other acts and things, as may be required by law or as, in the
reasonable judgment of the other party hereto, may be necessary or advisable
to
carry out the intent and purposes of this Agreement.
(s) Fees
and Expenses. Each of the parties hereto shall pay its own fees and expenses
incurred in connection with the negotiation, preparation, execution and delivery
of this Agreement (including Exhibit A and Exhibit B annexed
hereto) and any other agreement or document contemplated hereby.
18
(t) Exculpated
Persons. No general or limited partner, shareholder, director, officer,
member, beneficiary, trustee, manager, other controlling person, investor,
employee, attorney, agent or independent contractor of either party hereto
(each
an “Exculpated Person”) shall be personally liable for any obligation or
liability of such party under this Agreement, and all obligations and
liabilities of such party under this Agreement are enforceable solely against
such party and such party’s assets, and not against any Exculpated Person or the
assets of any Exculpated Person.
(u) No
Presumption. This Agreement shall be construed without regard to any
presumption or rule requiring construction or interpretation against the party
which drafted or caused this Agreement to be drafted.
(v) Captions.
The captions used in this Agreement are intended for convenience of reference
only, shall not constitute any part of this Agreement and shall not modify
or
affect in any manner the meaning or interpretation of any of the provisions
of
this Agreement.
19
IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the day
and
year first above written.
New
York Yankees Partnership
|
||||
By:
|
/s/
Xxxxxx Xxxxxxxxx
|
By:
|
/s/
Xxxx X. Xxxxx
|
|
Xxxxxx
Xxxxxxxxx
|
Xxxx
X. Xxxxx, Esq.
|
|||
Chief
Operating Officer
|
20
EXHIBIT
A
(1) Diorama
Advertisement (sample Advertisement depicted).
21
(2)
Highway Marquee Clock Advertisements (sample Advertisement
depicted).
22
EXHIBIT
B
Advertising
and Sponsorship Benefits
1. |
Advertising
and Sponsorship
Benefits
|
In
consideration for the payment of the Sponsorship Fee, set forth in Section
3,
Sponsor will receive the following Advertising and Sponsorship Benefits during
the Term:
a. Designation.
Sponsor
will be designated as “A Proud Sponsor of the New York Yankees.”
b. Diorama
Advertisement.
One (1)
backlit Diorama Advertisement measuring seventy-two inches by forty-two inches
(72” x 42”). The Diorama Advertisement will be located on the Field, Main or
Tier Level of the Stadium. Subject to the MLB Documents, the Diorama
Advertisement will be displayed during each postseason game played in the
Stadium. The Diorama Advertisement shall resemble the advertisement depicted
in
Exhibit
A.
c. Highway
Marquee Clock Advertisements.
Two (2)
Highway Marquee Matrix Clock Advertisements, each measuring fourteen feet by
three feet (14’ x 3’), one (1) located on each side of the Highway Marquee
Matrix Board located adjacent to the Major Xxxxxx Highway. The Clock
Advertisements shall resemble the advertisement depicted in Exhibit
A.
d. Promotional
Day.
Sponsor
will receive one (1) promotional day (the “Promotional Day”) during the 2008
Season. Sponsor will be responsible for the cost and expense of supplying a
mutually agreed upon number of promotional items (the “Promotional Items”) for
the Promotional Day. Sponsor will supply: i) 20,000 Promotional Items to be
given to either the first 18,000 fans 14 and under in attendance or 21 and
over;
or ii) 60,000 Promotional Items to be given to all fans in attendance. In
addition, Sponsor hereby grants the Yankees title to the Promotional Items
and
the right to distribute any remaining Promotional Items following the
Promotional Day for charitable and other non-commercial purposes. Sponsor will
also be provided with the following customary marketing and hospitality benefits
in connection with the Promotional Day:
i) Radio
and
Television: The Promotional Day and Promotional Item will be mentioned and/or
displayed in a live read during live game radio broadcasts and live game
telecasts in select games preceding the Promotional Day; provided that each
mention and/or display will be subject to time availability. The timing of
the
reads and Games in which the reads are broadcast are solely determined by the
Yankees, subject to availability;
ii) In-Stadium
Marquee Matrix Board: Sponsor’s name and the Promotional Day will be spotlighted
in each of the ten (10) Games preceding the Promotional Day;
23
iii) DiamondVision:
One (1) full-color video spot promoting the Promotional Day will be displayed
in
each of the ten (10) Games preceding the Promotional Day;
iv) Highway
Marquee Matrix Board: Sponsor’s name and the Promotional Day will be spotlighted
during each of the ten (10) days preceding the Promotional Day;
v) Yankees
Magazine:
Sponsor’s name and the Promotional Day will be listed in each in-Season issue of
the Yankees
Magazine
on a
special promotion page, subject
to publication deadlines;
vi) Hall
of
Fame Suite Party: One (1) Hall of Fame Suite Party (including food and
beverages) on the Promotional Day for up to a maximum of twenty-four (24)
people;
vii) Game
Tickets: Two Hundred (200) complimentary Tier Reserved Game tickets (the seating
locations of which will be determined by the Yankees) to the Game on the
Promotional Day. All Game tickets (including Promotional Day tickets and suite
tickets) are provided subject to the condition that if the Agreement is
terminated, any unused Game tickets must be returned to the Yankees no later
than thirty (30) days following the termination of the Agreement. Sponsor will
be required to pay the face value of each Game ticket that has not been returned
within thirty (30) days following the termination date. No Game tickets may
be
resold for any consideration, monetary or otherwise, or used for including,
without limitation, promotions, contests, giveaways, sweepstakes, auctions,
etc., without the prior written approval of the Yankees. The exercise of such
right by the Yankees will not result in any liability on the part of the Yankees
or entitle Sponsor to any credits, make-goods, rebates or other benefits;
and
viii) On-Field
Ceremony: A pre-game On-Field Ceremony will be held prior to the Game on the
Promotional Day whereby the Yankees will express its thanks to Sponsor for
sponsoring the Promotional Day. Two (2) of Sponsor’s representatives may
participate in the pre-game On-Field Ceremony.
24