Document:

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                           SELECT MEDICAL CORPORATION

                             1997 STOCK OPTION PLAN
                             ----------------------

          WHEREAS, Select Medical Corporation, a Delaware corporation, (the
"Company") desires to award incentive and nonqualified stock options to certain
individuals;

          NOW, THEREFORE, effective as of October 13, 2000, the Select Medical
Corporation 1997 Stock Option Plan as adopted October 30, 1997 is hereby amended
and restated under the following terms and conditions:

       1. Purpose. The Select Medical Corporation 1997 Stock Option Plan (the
          -------
"Plan") is intended to provide a means whereby the Company may, through the
grant of incentive stock options and nonqualified stock options (collectively,
the "Options") to purchase shares of common stock, par value $0.01 per share, of
the Company ("Common Stock") to officers and other key employees of the Company
or a "Related Corporation" (as defined below) ("Key Employees"), to non-employee
directors of the Company ("Non-Employee Directors"), and to consultants of the
Company or a Related Corporation who are not officers or employees thereof
("Consultants"), attract and retain such Key Employees, Non-Employee Directors
and Consultants and motivate each of them to exercise his or her best efforts on
behalf of the Company and any Related Corporation; provided that only
nonqualified stock options may be granted to Non-Employee Directors or to
Consultants.

          For purposes of the Plan, a "Related Corporation" shall mean, solely
in the case of incentive stock options, either a "subsidiary corporation" of the
Company, as defined in Section 424(f) of the Internal Revenue Code of 1986, as
amended (the "Code"), or the "parent corporation" of the Company, as defined in
Section 424(e) of the Code. The term "Related Corporation" shall mean, solely in
the case of nonqualified stock options, any of the following:

          (a) A subsidiary corporation of the Company as defined in Section
424(f) of the Code;

          (b) A parent corporation of the Company, as defined in Section 424(e)
of the Code; or

          (c) Any trade or business (whether or not incorporated) which is
directly or indirectly owned 50 percent or more by the Company or is directly or
indirectly controlled by the Company.

Further, as used in the Plan, (i) the term "ISO" shall mean an option which, at
the time such option is granted, qualifies as an incentive stock option within
the meaning of
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Section 422 of the Code and is designated as an ISO in the "Option Agreement"
(as defined in Section 8 hereof); and (ii) the term "NQSO" shall mean an option
which, at the time such option is granted, does not qualify as an ISO, and is
designated as a nonqualified stock option in the Option Agreement.

       2. Administration.
          --------------

          (a) The Plan shall be administered by the Company's Stock Option
Committee (the "Committee"), the members of which shall be appointed by, and
shall serve at the pleasure of, the Company's Board of Directors (the "Board").
The Board shall change the membership of the Committee, to the extent necessary,
so that on and after the date the Company first registers equity securities
under Section 12 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), the Committee shall consist solely of not fewer than two
non-employee directors (within the meaning of Rule 16b-3(b)(3) under the
Exchange Act, or any successor thereto) of the Company who are also outside
directors (within the meaning of Treas. Reg. Section 1.162-27(e)(3), or any
successor thereto) of the Company. Each member of the Committee, while serving
as such, shall be deemed to be acting in his or her capacity as a director of
the Company.

          (b) In the event a committee has not been established in accordance
with subsection (a) above, or cannot be constituted to vote on the grant of an
Option (for example, because of state laws governing corporate self-dealing),
the entire Board shall serve as the Committee for all purposes of the Plan;
provided, however, that a member of the Board shall not participate in a vote
approving the grant of an Option to himself or herself to the extent provided
under the laws of the State of Delaware governing corporate self-dealing.

          The Committee shall have full authority, subject to the terms of the
Plan, to select the Key Employees, Non-Employee Directors and Consultants to be
granted Options under the Plan, to grant Options on behalf of the Company, and
to set the date of grant and the other terms of such Options in accordance with
the Plan. The Committee may correct any defect, supply any omission, and
reconcile any inconsistency in this Plan and in any Option granted hereunder in
the manner and to the extent it deems desirable. The Committee may also, in its
discretion, (i) cancel an Option and grant a new Option to replace the cancelled
Option, or (ii) pay the Key Employee, Non-Employee Director or Consultant an
amount equal to the excess of the fair market value of the Common Stock on the
date of cancellation over the exercise price of Options which are exercisable at
that time. However, if the Committee adjusts the price of an Option or replaces
an Option, the resulting Option shall be treated as a new Option granted on the
date of such change or replacement and shall comply with the terms of the Plan
as such.

          The Committee also shall have the authority to establish such rules
and regulations, not inconsistent with the provisions of the Plan, for the
proper

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administration of the Plan, to amend, modify, or rescind any such rules and
regulations, and to make such determinations and interpretations under, or in
connection with, the Plan, as it deems necessary or advisable. All such rules,
regulations, determinations, and interpretations shall be binding and conclusive
upon the Company, its shareholders and all Key Employees, Non-Employee Directors
and Consultants, upon their respective legal representatives, beneficiaries,
successors, and assigns, and upon all other persons claiming under or through
any of them.

          No member of the Board or the Committee shall be liable for any action
or determination made in good faith with respect to the Plan or any Option
granted under it.

       3. Eligibility. The persons who shall be eligible to receive Options
          -----------
under the Plan shall be the Key Employees (including any directors who also are
officers or key employees), Non-Employee Directors and Consultants. Key
Employees shall be entitled to receive ISOs and NQSOs. Non-Employee Directors
and Consultants shall be eligible to receive only NQSOs. More than one Option
may be granted to a Key Employee, Non-Employee Director or Consultant under the
Plan. A Key Employee, Non-Employee Director or Consultant who has been granted
an Option under the Plan shall hereinafter be referred to as an "Optionee."

       4. Stock. Options may be granted under the Plan to purchase up to a
          -----
maximum of 10,000,000 shares of Common Stock, par value $0.01 per share, plus an
additional amount, calculated by the Committee from time to time, equal to 14%
of the Company's total issued and outstanding Common Stock in excess of
60,000,000 shares; provided that not more than 15,000,000 shares of Common Stock
may be issued upon exercise of Incentive Stock Options. Notwithstanding anything
to the contrary herein contained, in no event will the number of shares of
Common Stock available for grant under the Plan be less than 14% of the
Company's total issued and outstanding Common Stock. On and after the date the
Company first registers equity securities under Section 12 of the Exchange Act,
no Key Employee shall receive Options for more than 15,000,000 shares of the
Company's Common Stock either in any calendar year or over the life of the Plan.
However, both of the limits in the preceding sentence shall be subject to
adjustment as hereinafter provided. Shares issuable under the Plan may be
authorized but unissued shares or reacquired shares, and the Company may
purchase shares required for this purpose, from time to time, if it deems such
purchase to be advisable.

          If any Option granted under the Plan expires or otherwise terminates
for any reason whatsoever (including, without limitation, the Optionee's
surrender thereof) without having been exercised, the shares subject to the
unexercised portion of the Option shall continue to be available for the
granting of Options under the Plan as fully as if the shares had never been
subject to an Option; provided, however, that (i) if an Option is cancelled, the
shares of Common Stock covered by the cancelled Option shall

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be counted against the maximum number of shares for which Options may be granted
to a single Key Employee, and (ii) if the exercise price of an Option is reduced
after the date of grant, the transaction shall be treated as a cancellation of
the original Option and the grant of a new Option for purposes of such maximum.

       5. Granting of Options. From time to time until the expiration or earlier
          -------------------
suspension or discontinuance of the Plan, the Committee may, on behalf of the
Company, grant to Key Employees, Non-Employee Directors and Consultants under
the Plan such Options as it determines in its sole discretion are warranted;
provided, however, that grants of ISOs and NQSOs shall be separate and not in
tandem.

       6. Annual Limit.
          ------------

          (a) ISOs. The aggregate fair market value (determined under Section
              ----
7(b) hereof as of the date the ISO is granted) of the Common Stock with respect
to which ISOs are exercisable for the first time by a Key Employee during any
calendar year (counting ISOs under this Plan and under any other stock option
plan of the Company or a Related Corporation) shall not exceed $100,000. If an
Option intended as an ISO is granted to a Key Employee and the Option may not be
treated in whole or in part as an ISO pursuant to the $100,000 limitation, the
Option shall be treated as an ISO to the extent it may be so treated under the
limitation and as an NQSO as to the remainder. For purposes of determining
whether an ISO would cause the limitation to be exceeded, ISOs shall be taken
into account in the order granted.

          (b) NQSOs. The annual limits set forth above for ISOs shall not apply
              -----
to NQSOs.

       7. Terms and Conditions of Options. Options granted pursuant to the Plan
          -------------------------------
shall include expressly or by reference the following terms and conditions, as
well as such other provisions not inconsistent with the provisions of this Plan
and, for ISOs granted under this Plan, the provisions of Section 422(b) of the
Code, as the Committee shall deem desirable. Moreover, the Committee may provide
in the Option that said Option may be exercised only if certain conditions, as
determined by the Committee, are fulfilled.

          (a) Number of Shares. The Option shall state the number of shares of
              ----------------
Common Stock to which it pertains.

          (b) Price. The Option shall state the Option price which shall be
              -----
determined and fixed by the Committee in its discretion but, in the case of an
ISO, shall not be less than the higher of 100 percent (110 percent in the case
of a more-than-10-percent shareholder, as provided in subsection (k) below) of
the fair market value of the shares of Common Stock subject to the Option on the
date the ISO is granted, or the par value thereof, and, in the case of an NQSO,
may be less than 100 percent of the fair

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market value of such optioned shares, as determined by the Committee at the time
the NQSO is granted.

          The fair market value of a share of Common Stock shall mean (i) the
average of the closing prices of the sales of the class of Common Stock on all
securities exchanges on which such Common Stock may at the time be listed, or
(ii) if there have been no sales on any such exchange on any day, the average of
the highest bid and lowest asked prices on all such exchanges at the end of such
day, or (iii) if on any day such Common Stock is not so listed, the average of
the representative bid and asked prices quoted in the NASDAQ System as of 4:00
P.M., New York time, or (iv) if on any day such Common Stock is not quoted in
the NASDAQ System, the average of the highest bid and lowest asked prices on
such day in the domestic over-the-counter market as reported by the National
Quotation Bureau Incorporated or any similar successor organization. If at any
time such Common Stock is not listed on any securities exchange or quoted in the
NASDAQ System or the over-the-counter market, the fair market value shall be the
fair value of such Common Stock as determined in good faith by the Board.

          (c) Term
              ----

              (1) ISOs. Subject to earlier termination as provided in
                  ----
subsections (e), (f), and (g) below, the term of each ISO shall not be more than
10 years (five years in the case of a more-than-10-percent shareholder, as
discussed in subsection (k) below) from the date of grant of such ISO.

              (2) NQSOs. Subject to earlier termination as provided in
                  -----
subsections (e), (f), and (g) below, the term of each NQSO shall not be more
than 10 years from the date of grant.

          (d) Exercise. Options shall be exercisable in such installments, upon
              --------
fulfillment of such other conditions and on such dates as the Committee may
specify.

          Any exercisable Options may be exercised at any time up to the
expiration or termination of the Option. Exercisable Options may be exercised,
in whole or in part and from time to time, by giving written notice of exercise
to the Company at its principal office, specifying the number of shares to be
purchased and accompanied by payment in full of the aggregate Option exercise
price for such shares. Only full shares shall be issued under the Plan, and any
fractional share which might otherwise be issuable upon exercise of an Option
granted hereunder may be forfeited at the Company's discretion.

          The Option price shall be payable in the case of an ISO, if the
Committee in its discretion causes the Option Agreement so to provide, and in
the case of an NQSO, if the Committee in its discretion so determines at or
prior to the time of exercise --

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          (1) in cash or its equivalent;

          (2) in shares of Common Stock previously acquired by the Optionee;
provided that (i) if such shares of Common Stock were acquired through the
exercise of an ISO and are used to pay the Option price for ISOs, such shares
have been held by the Optionee for a period of not less than the holding period
described in Section 422(a)(1) of the Code on the date of exercise, or (ii) if
such shares of Common Stock were acquired through the exercise of an NQSO and
are used to pay the Option price of an ISO, or if such shares of Common Stock
were acquired through the exercise of an ISO or an NQSO and are used to pay the
Option price of an NQSO, such shares have been held by the Optionee for a period
of more than one year on the date of exercise;

          (3) in shares of Common Stock newly acquired by the Optionee upon
exercise of such Option (which shall constitute a disqualifying disposition in
the case of an Option which is an ISO);

          (4) by delivering a properly executed notice of exercise of the Option
to the Company and a broker, with irrevocable instructions to the broker
promptly to deliver to the Company the amount of sale or loan proceeds necessary
to pay the exercise price of the Option; or (5) if the Committee so determines,
at the date of grant in the case of an ISO, or at or after the date of grant in
the case of an NQSO, and if the Optionee thereafter so requests, (i) the Company
will loan the Optionee the money required to pay the exercise price of the
Option; (ii) any such loan to an Optionee shall be made only at the time the
Option is exercised; and (iii) the loan will be made on the Optionee's personal
negotiable demand promissory note, bearing interest at the lowest rate which
will avoid imputation of interest under Section 7872 of the Code, with a pledge
of the Common Stock acquired upon exercise (unless the Committee, at the time of
grant, chooses to waive the pledge requirement), and including such other terms
as the Committee may prescribe; or

          (6) in any combination of (1), (2), (3), (4), and (5) above.

       In the event the Option price is paid, in whole or in part, with shares
of Common Stock, the portion of the Option price so paid shall be equal to the
aggregate fair market value (determined under subsection (b) above, but as of
the date of exercise of the Option, rather than the date of grant) of the Common
Stock so surrendered in payment of the Option price.

          (e) Termination of Employment or Service. If an Optionee's employment
              ------------------------------------
by or service for the Company or a Related Corporation is terminated by any such
party prior to the expiration date fixed for his or her Option for any reason
other than death or disability, such Option may be exercised, to the extent of
the

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number of shares with respect to which the Optionee could have exercised it on
the date of such termination, or to any greater extent permitted by the
Committee, by the Optionee at any time prior to the earlier of (i) the
expiration date specified in such Option, or (ii) an accelerated expiration date
determined by the Committee, in its discretion, and set forth in the Option
Agreement; except that, such accelerated expiration date shall not be earlier
than the date of the Optionee's termination of employment or service, and in the
case of ISOs, such accelerated expiration date shall be no later than three
months after such termination of employment or service.

          (f) Exercise upon Disability of Optionee. If a Optionee becomes
              ------------------------------------
disabled (within the meaning of Section 22(e)(3) of the Code) during his or her
employment by or service for the Company or a Related Corporation and, prior to
the expiration date fixed for his or her Option, his or her employment or
service is terminated as a consequence of such disability, such Option may be
exercised, to the extent of the number of shares with respect to which the
Optionee could have exercised it on the date of such termination, or to any
greater extent permitted by the Committee, by the Optionee at any time prior to
the earlier of (i) the expiration date specified in such Option, or (ii) an
accelerated termination date determined by the Committee, in its discretion, and
set forth in the Option Agreement; except that, such accelerated termination
date shall not be earlier than the date of the Optionee's termination of
employment or service by reason of disability, and in the case of ISOs, such
accelerated termination date shall be no later than one year after such
termination of employment. In the event of the Optionee's legal disability, such
Option may be exercised by the Optionee's legal representative.

          (g) Exercise upon Death of Optionee. If an Optionee dies during his or
              -------------------------------
her employment by or service for the Company or a Related Corporation, and prior
to the expiration date fixed for his or her Option, or if an Optionee whose
employment or service is terminated for any reason, dies following his or her
termination of employment or service but prior to the earliest of (i) the
expiration date fixed for his or her Option, (ii) the expiration of the period
determined under subsections (e) and (f) above, or (iii) in the case of an ISO,
three months following termination of employment, such Option may be exercised,
to the extent of the number of shares with respect to which the Optionee could
have exercised it on the date of his or her death, or to any greater extent
permitted by the Committee, by the Optionee's estate, personal representative,
or beneficiary who acquired the right to exercise such Option by bequest or
inheritance or by reason of the death of the Optionee. Such post-death exercise
may occur at any time prior to the earlier of (i) the expiration date specified
in such Option or (ii) an accelerated termination date determined by the
Committee, in its discretion, and set forth in the Option Agreement; except
that, such accelerated termination date shall not be earlier than one year, nor
later than three years, after the date of death.

          (h) Extension of Accelerated Expiration Date. The Committee, in its
              ----------------------------------------
discretion, shall have the authority to extend any accelerated expiration date
otherwise

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fixed under subsection (e), (f), or (g) above; provided the Optionee or the
Optionee's estate, personal representative, or beneficiary consents to such
extension. In the case of an ISO, the Optionee or the Optionee's estate,
personal representative, or beneficiary must also acknowledge in writing that
such extension will cause the ISO to be treated as an NQSO thereafter.

          (i) Non-Transferability. No ISO and (except as otherwise provided in
              -------------------
any Option Agreement) no NQSO shall be assignable or transferable by the
Optionee other than by will or by the laws of descent and distribution, and
(subject to the preceding clause) during the lifetime of the Optionee, shall be
exercisable only by the Optionee or by the Optionee's guardian or legal
representative. If the Optionee is married at the time of exercise and if the
Optionee so requests at the time of exercise, the certificate or certificates
shall be registered in the name of the Optionee and the Optionee's spouse,
jointly, with right of survivorship.

          (j) Rights as a Shareholder. An Optionee shall have no rights as a
              -----------------------
shareholder with respect to any shares covered by his or her Option until the
issuance of a stock certificate to the Optionee for such shares.

          (k) Ten Percent Shareholder. If a Key Employee owns more than 10
              -----------------------
percent of the total combined voting power of all shares of stock of the Company
or of a Related Corporation at the time an ISO is granted to him, the Option
price for the ISO shall be not less than 110 percent of the fair market value
(as determined under subsection (b) above) of the optioned shares of Common
Stock on the date the ISO is granted, and such ISO, by its terms, shall not be
exercisable after the expiration of five years from the date the ISO is granted.
The conditions set forth in this subsection shall not apply to NQSOs.

          (l) Listing and Registration of Shares. Each Option shall be subject
              ----------------------------------
to the requirement that, if at any time the Committee shall determine, in its
discretion, that the listing, registration, or qualification of the shares of
Common Stock covered thereby upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of, or in connection with, the granting of
such Option or the purchase of shares of Common Stock thereunder, or that action
by the Company or by the Optionee should be taken in order to obtain an
exemption from any such requirement, no such Option may be exercised, in whole
or in part, unless and until such listing, registration, qualification, consent,
approval, or action shall have been effected, obtained, or taken under
conditions acceptable to the Committee. Without limiting the generality of the
foregoing, each Optionee or his or her legal representative or beneficiary may
also be required to give satisfactory assurance that shares purchased upon
exercise of an Option are being purchased for investment and not with a view to
distribution, and certificates representing such shares may be legended
accordingly.

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          (m) Withholding and Use of Shares to Satisfy Tax Obligations. The
              --------------------------------------------------------
obligation of the Company to deliver shares of Common Stock to a Key Employee
upon the exercise of any Option (or cash in lieu thereof) shall be subject to
applicable federal, state, and local tax withholding requirements.

          If the exercise of any Option is subject to the withholding
requirements of applicable federal tax law, the Committee, in its discretion,
may permit or require the Key Employee to satisfy the federal withholding tax,
in whole or in part, by electing to have the Company withhold shares of Common
Stock subject to the exercise (or by returning previously acquired shares of
Common Stock to the Company). The Company may not withhold shares in excess of
the number necessary to satisfy the minimum federal income tax withholding
requirements. Shares of Common Stock shall be valued, for purposes of this
subsection, at their fair market value under subsection (b) above, but as of the
date the amount attributable to the exercise of the Option is includable in
income by the Key Employee under Section 83 of the Code (the "Determination
Date"). If shares of Common Stock acquired by the exercise of an ISO are used to
satisfy the withholding requirement described above, such shares of Common Stock
must have been held by the Key Employee for a period of not less than the
holding period described in Section 422(a)(1) of the Code as of the
Determination Date.

          The Committee shall adopt such withholding rules as it deems necessary
to carry out the provisions of this subsection.

       8. Option Agreements -- Other Provisions. Options granted under the Plan
          -------------------------------------
shall be evidenced by written documents ("Option Agreements") in such form as
the Committee shall from time to time approve, and containing such provisions
not inconsistent with the provisions of the Plan (and, for ISOs granted pursuant
to the Plan, not inconsistent with Section 422(b) of the Code), as the Committee
shall deem advisable. The Option Agreements shall specify whether the Option is
an ISO or NQSO. Each Optionee shall enter into, and be bound by, an Option
Agreement in connection with the grant of an Option.

       9. Capital Adjustments. The number of shares which may be issued under
          -------------------
the Plan, and the maximum number of shares with respect to which Options may be
granted to any individual under the Plan, as stated in Section 4 hereof, and the
number of shares issuable upon exercise of outstanding Options under the Plan
(as well as the Option price per share under such outstanding Options) shall,
subject to the provisions of Section 424(a) of the Code, be adjusted, as may be
deemed appropriate by the Committee, to reflect any stock dividend, stock split,
share combination, or similar change in the capitalization of the Company. In
the event any such change in capitalization cannot be reflected in a straight
mathematical adjustment of the number of shares issuable upon the exercise of
outstanding Options (and a straight mathematical adjustment of the exercise
price thereof), the Committee shall make such adjustments

                                      -9-
<PAGE>

as are appropriate to reflect most nearly such straight mathematical adjustment.
Such adjustments shall be made only as necessary to maintain the proportionate
interest of Optionees, and preserve, without exceeding, the value of Options.

      10. Certain Corporate Transactions. In the event of a corporate
          ------------------------------
transaction (as that term is described in Section 424(a) of the Code and the
Treasury Regulations issued thereunder as, for example, a merger, consolidation,
acquisition of property or stock, separation, reorganization, or liquidation),
each outstanding Option shall be assumed by the surviving or successor
corporation.

      11. Exercise Upon Change in Control
          -------------------------------

          (a) Notwithstanding any other provision of this Plan, all outstanding
Options shall become fully vested and exercisable upon a Change in Control.

          (b) "Change in Control" shall be deemed to have taken place if:

              (1) any person, including a group but excluding the Company or any
stockholder of the Company as of October 13, 2000, becomes the beneficial owner
of shares of the Company having 50 percent or more of the total number of votes
that may be cast for the election of directors of the Company other than by
acquiring such shares directly from the Company;

              (2) there occurs any cash tender or exchange offer for shares of
the Company, merger or other business combination, or sale of assets, or any
combination of the foregoing transactions, and as a result of or in connection
with any such event persons who were directors of the Company before the event
shall cease to constitute a majority of the board of directors of the Company or
any successor to the Company; or

              (3) during any period of two consecutive calendar years beginning
after the date of the initial public offering of the Common Stock, members of
the Incumbent Board cease for any reason to constitute a majority of the Board;
for this purpose, the "Incumbent Board" shall consist of the individuals who at
the beginning of such period constitute the entire Board and any new director --
other than a director (i) designated or nominated by, or affiliated with, a
person who has entered into an agreement with the Company to effect a
transaction described in (2) above, or (ii) who initially assumed office as a
result of either an actual or threatened "Election Contest" (as described in
Rule 14a-11 under the Exchange Act) or other actual or threatened solicitation
of proxies or contests by or on behalf of a person other than the Board (a
"Proxy Contest"), including by reason of any agreement intended to avoid or
settle any Election Contest or Proxy Contest -- whose election by the Board or
nomination for election by the stockholders of the Company was approved by a
vote of at least 2/3rds of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for
election was previously so approved.

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<PAGE>

      12. Amendment or Termination of the Plan
          ------------------------------------

          (a) In General. The Board, pursuant to a written resolution, from time
              ----------
to time may suspend or terminate the Plan or amend it, and the Committee may
amend any outstanding Options in any respect whatsoever; except that, without
the approval of the shareholders (given in the manner set forth in subsection
(b) below) --

              (1) with respect to ISOs, no amendment may be made which would --

                  (A) change the class of employees eligible to participate in
the Plan;

                  (B) except as permitted under Section 9 hereof, increase the
maximum number of shares of Common Stock with respect to which ISOs may be
granted under the Plan; or

                  (C) extend the duration of the Plan under Section 19 hereof
with respect to any ISOs granted hereunder.

              (2) on and after the date the Company first registers equity
securities under Section 12 of the Exchange Act, no amendment may be made which
would require shareholder approval pursuant to Treas. Reg. Section
1.162-27(e)(4)(vi) or any successor thereto.

Notwithstanding the foregoing, no such suspension, discontinuance or amendment
shall materially impair the rights of any holder of an outstanding Option
without the consent of such holder.

          (b) Manner of Shareholder Approval. The approval of shareholders must
              ------------------------------
comply with all applicable provisions of the corporate charter and bylaws of the
Company, and must be effected --

              (1) by a method and in a degree that would be treated as adequate
under applicable state law in the case of an action requiring shareholder
approval (i.e., an action on which shareholders would be entitled to vote if the
action were taken at a duly held shareholders' meeting or by a duly executed
written consent); or

              (2) by a majority of the votes cast (including abstentions, to the
extent abstentions are counted as voting under applicable state law), in a
separate vote at a duly held shareholders' meeting at which a quorum
representing a majority of all outstanding voting stock is, either in person or
by proxy, present and voting on the Plan.

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<PAGE>

      13. Company's Right of First Refusal and Right to Repurchase Common Stock;
          ----------------------------------------------------------------------
Proxy or Voting Agreement. Any shares of Common Stock issued pursuant to the
-------------------------
exercise of Options that were granted under this Plan shall be subject to this
Section until the date the Company completes a public offering of its Common
Stock under the Securities Act of 1933, as amended (the "Securities Act").
Common Stock certificates issued on behalf of an Optionee shall include a legend
setting forth restrictions on transfer and any other legend required by the
Committee.

          (a) Proxy or Voting Agreement. The Committee may condition the
              -------------------------
issuance of shares of Common Stock to an Optionee or an Optionee's beneficiary
on such Optionee's or such beneficiary's entering into a proxy or voting
agreement with the Company with respect to such shares of Common Stock.

          (b) Company's Right of First Refusal. Optionees and beneficiaries
              --------------------------------
shall not sell, transfer, assign, pledge, or otherwise dispose of or encumber
(collectively, "Transfer"), whether voluntarily or by operation of law, any
shares of Common Stock or any interest therein except in accordance with the
terms and conditions of this subsection (b). Any Transfer in violation of this
subsection (b) shall be null and void and of no force and effect.

          An Optionee (or, if applicable, beneficiary) shall give the Company
prior written notice (the "Sale Notice") of any proposed Transfer of shares of
Common Stock to a third party (a "Transferee") (other than a Transfer in
connection with a registered public offering of the Common Stock under the
Securities Act or any sale to the public pursuant to Rule 144 promulgated under
the Securities Act effected through a broker, dealer, or market maker),
identifying the Transferee, the number of shares to be transferred, the amount
of cash to be paid for the shares and the other terms and conditions of the
proposed Transfer; provided, however in no event may an Optionee transfer any
shares of the Common Stock pursuant to this Section for any consideration other
than cash payable upon consummation of such Transfer or in installments over
time. The Company shall have the right, exercisable by written notice to the
Optionee (or beneficiary) within 60 calendar days following its receipt of the
Sale Notice, to repurchase the shares intended to be transferred by the Optionee
(or beneficiary). The purchase price to be paid to the Optionee (or beneficiary)
upon any such repurchase shall be a cash amount equal to the cash amount the
Optionee (or beneficiary) would have received from the proposed Transferee upon
such Transfer.

          Closing with respect to the repurchase of such shares of Common Stock
shall take place at the Company's principal office not more than 30 calendar
days following the date of the Company's notice of its intention to repurchase
the shares intended to be transferred by the Optionee (or beneficiary). The
purchase price of such shares shall be paid in cash, by check, or by wire
transfer. The Company may pay the purchase price for such shares by offsetting
amounts outstanding under any bona fide debts owed by the Optionee to the
Company.

                                      -12-
<PAGE>

          If the Company does not elect to repurchase the shares intended to be
transferred by the Optionee (or beneficiary), then the Optionee (or beneficiary)
may transfer such shares at a price and terms no more favorable to the proposed
Transferee during the 60-day period immediately following the expiration of the
60-day period during which the Company could have elected to repurchase the
shares. Any shares not transferred within such second 60-day period shall be
subject to the provisions of this Section upon a subsequent proposed Transfer.

          The restrictions contained in this Section 13 will not apply to (i)
Transfers of shares of the Common Stock pursuant to applicable laws of descent
and distribution, or (ii) Transfers of shares of the Common Stock among the
Optionee's "Family Group" (as defined below); provided that such restrictions
will continue to be applicable to the Common Stock following any such Transfer
and the Transferees of such Common Stock have agreed in writing to be bound by
the provisions of this Section. For purposes hereof, "Family Group" shall mean
the Optionee's spouse and descendants (whether natural or adopted) and any trust
created solely for the benefit of the Optionee and/or the Optionee's spouse
and/or descendants.

          (c) Company's Right to Repurchase Common Stock. Upon termination of an
              ------------------------------------------
Optionee's employment by or service for the Company or a Related Corporation for
any reason, including death, disability, voluntary resignation, and involuntary
termination with or without cause, the Company shall have the right, but not the
obligation, to purchase all, or any whole number of shares less than all, of the
shares of Common Stock then owned by the Optionee or the Optionee's beneficiary
or owned by them after the exercise of Options pursuant to Sections 7(e), 7(f),
or 7(g) hereof (the "Repurchase Right"). The purchase price of the shares
pursuant to the Repurchase Right shall be the fair market value thereof as
defined in Section 7(b) hereof. The Repurchase Right shall expire one year after
the later of (i) the Optionee's termination of employment by or service for the
Company or a Related Corporation or (ii) the date on which the right of the
Optionee or his or her legal representative, estate, personal representative, or
beneficiary, as the case may be, to exercise the Option covering the shares of
Common Stock expires, unless the Company has given written notice to the
Optionee (or the Optionee's legal representative, estate, personal
representative, or beneficiary) of its exercise of the Repurchase Right, prior
to the expiration of such one-year period.

          The fair market value of the shares of Common Stock shall be
determined, in the case of an exercise of a Repurchase Right under this
subsection (c), as of the date the Company gives the Optionee (or the Optionee's
legal representative, estate, personal representative, or beneficiary) written
notice of its exercise of the Repurchase Right.

          Closing with respect to any such repurchase of shares of Common Stock
by the Company pursuant to this subsection (c) shall be held as described in
subsection

                                      -13-
<PAGE>

(b) above. The purchase price of such shares shall be paid in cash, by check, or
by wire transfer. The Company may pay the purchase price for such shares by
offsetting amounts outstanding under any bona fide debts owed by the Optionee to
the Company. The Company shall be entitled to receive customary representations
and warranties from the sellers regarding such sale and to require all sellers'
signatures to be guaranteed.

          (d) Notwithstanding anything to the contrary contained in this
Section, all repurchases of Common Stock by the Company shall be subject to
applicable restrictions contained in the Delaware General Corporation Law and in
the Company's and its Related Corporations' debt and equity financing
agreements. If any such restrictions prohibit the repurchase of Common Stock
hereunder which the Company is otherwise entitled or required to make, the
Company may make such repurchases as soon as it is permitted to do so under such
restrictions.

      14. Rights. Neither the adoption of the Plan nor any action of the Board
          ------
or the Committee shall be deemed to give any individual any right to be granted
an Option, or any other right hereunder, unless and until the Committee shall
have granted such individual an Option, and then his or her rights shall be only
such as are provided by the Option Agreement. Notwithstanding any provisions of
the Plan or the Option Agreement with an Optionee, the Company and any Related
Corporation shall have the right, in its discretion but subject to any
employment contract or service agreement entered into with the Optionee, to
retire the Optionee at any time pursuant to its retirement rules or otherwise to
terminate an Optionee's employment or service at any time for any reason
whatsoever.

      15. Indemnification of Board and Committee. Without limiting any other
          --------------------------------------
rights of indemnification which they may have from the Company and any Related
Corporation, the members of the Board and the members of the Committee shall be
indemnified by the Company against all costs and expenses reasonably incurred by
them in connection with any claim, action, suit, or proceeding to which they or
any of them may be a party by reason of any action taken or failure to act
under, or in connection with, the Plan, or any Option granted thereunder, and
against all amounts paid by them in settlement thereof (provided such settlement
is approved by legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit, or proceeding, except a
judgment based upon a finding of willful misconduct or recklessness on their
part. Upon the making or institution of any such claim, action, suit, or
proceeding, the Board or Committee member shall notify the Company in writing,
giving the Company an opportunity, at its own expense, to handle and defend the
same before such Board or Committee member undertakes to handle it on his or her
own behalf. The provisions of this Section shall not give members of the Board
or the Committee greater rights than they would have under the Company's by-laws
or the Delaware General Corporation Law.

                                      -14-
<PAGE>

      16. Application of Funds. The proceeds received by the Company from the
          --------------------
sale of Common Stock pursuant to Options granted under the Plan shall be used
for general corporate purposes. Any cash received in payment for shares upon
exercise of an Option shall be added to the general funds of the Company and
shall be used for its corporate purposes. Any Common Stock received in payment
for shares upon exercise of an Option shall become treasury stock.

      17. Shareholder Approval. This Plan shall become effective on October 30,
          --------------------
1997 (the date the Plan was adopted by the Board); provided, however, that if
the Plan is not approved by the shareholders, in the manner described in Section
12(b) hereof, within 12 months before or after the date the Plan was adopted by
the Board, the Plan and all Options granted hereunder shall be null and void and
no additional Options shall be granted hereunder.

      18. No Obligation to Exercise Option. The granting of an Option shall
          --------------------------------
impose no obligation upon an Optionee to exercise such Option.

      19. Termination of Plan. Unless earlier terminated as provided in the
          -------------------
Plan, the Plan and all authority granted hereunder shall terminate absolutely at
12:00 midnight on October 12, 2010, which date is within 10 years after the date
the Plan was adopted by the Board, (or the date the Plan was approved by the
shareholders of the Company, whichever is earlier), and no Options hereunder
shall be granted thereafter. Nothing contained in this Section, however, shall
terminate or affect the continued existence of rights created under Options
issued hereunder, and outstanding on the date set forth in the preceding
sentence, which by their terms extend beyond such date.

      20. Governing Law. The Plan shall be governed by the applicable Code
          -------------
provisions to the maximum extent possible. Otherwise, the laws of the State of
Delaware shall govern the operation of, and the rights of Optionees under, the
Plan, and Options granted thereunder.

                                      -15-<PAGE>

                                                                   EXHIBIT 10.36

                 NAMING, PROMOTiONAL AND SPONSORSHIP AGREEMENT
                 ---------------------------------------------

                                October 1, 1997

     The parties to this Agreement are NovaCare, Inc., a Delaware corporation,
with an office located at 1016 West Ninth Avenue, King of Prussia, Pennsylvania
19406 ("NovaCare"), and the Philadelphia Eagles Limited Partnership, a Delaware
limited partnership with an office located at 3501 South Broad Street,
Philadelphia, Pennsylvania 19148-5298 ("Eagles").

                                   RECITALS
                                   --------

     A.   NovaCare is a provider of services in rehabilitation, occupational
therapy, Occupational Health (as defined below), physical therapy, conditioning
and nutrition, and orthotics and prosthetics.

     B.   The Eagles hold a franchise to play football representing the City of
Philadelphia and the surrounding territory in the National Football League
("NFL").

     C.   NovaCare wishes to obtain from the Eagles, and the Eagles wish to
grant to NovaCare, naming, sponsorship and promotional rights with respect to
the Eagles and to a corporate/team headquarters complex to be constructed for
the use of the Eagles and its NFL team (the "Eagles Team") in exchange for cash
sponsorship fees and other consideration.

     Accordingly, NovaCare and the Eagles have agreed as follows:

I.   Certain Definitions
     -------------------

     For purposes of this Agreement, the following capitalized terms shall have
the following meanings:

     "Category" shall mean the service category consisting of the provision of
direct services to patients in rehabilitation, occupational therapy,
Occupational Health, physical therapy, conditioning and nutrition, and the
product and services categories consisting of orthotics and prosthetics.

     "Category Competitor" shall mean any Person which (i) during the
immediately preceding fiscal year earned, or is part of a group of companies
majority owned by the same parent company which as a group earned, at least 35%
of its (or their) gross revenues from the provision of products or services in
the Category, or (ii) is primarily known in the Territory for its provision of
products or services in the Category, owns and operates at least ten outpatient
centers providing services in the Category in the Territory and had revenues
from the provision of products and services in the Category in the Territory of
at least $5 million in the immediately preceding fiscal year (such amount to be
increased at the rate of 7% per Contract Year beginning in its 1998 Contract
Year). Notwithstanding the foregoing, however, the term "Category
<PAGE>

Competitor" shall not include any division, subsidiary, affiliate or parent of
any Person that would be a Category Competitor under the preceding sentence if
that division, subsidiary, affiliate or parent does not operate under the same
tradename, trademarks or other identifying names or symbols used by such Person
in the provision of products and services in the Category.

     "Contract Year" shall mean the period beginning on the date of this
Agreement and ending December 31, 1997, and each subsequent twelve-month period
beginning on January 1 and ending on December 31.

     "Game" or "Games" shall mean an NFL football game or games played during
the NFL Season by the Eagles Team and shall include all actual play and all
other periods between the start of such Game or Games and the end thereof,
including, without limitation, all periods of time out, periods between quarters
and halves, and overtime periods.

     "Home Game" shall mean a Game played in Veterans Stadium, Philadelphia,
Pennsylvania, or any New Stadium.

     "Laws" shall mean all applicable statutes, rules, regulations, legally
binding governmental policies and directives, court orders and laws of any type.

     "Licensed Marks" shall mean the logos, name, trademarks, tradenames and
copyrighted design elements of the Eagles or the Eagles Team, as they may exist
from time to time.

     "Name" shall mean the name and related logo recognition for the NovaCare
Complex selected in accordance with Article III.B(i), subject to such changes as
may be made pursuant to Article XIII.B.

     "New Stadium" shall mean any new facility in the Territory where the
Eagles Team regularly plays home games during the Term.

     "NFL Entity" shall mean the NFL, NFL Properties, Inc., the NFL Trust, any
successor to any of the foregoing, or any of their respective affiliates or
subsidiaries in which a majority of NFL members has a direct or indirect
ownership interest from time to time.

     "NFL Rules" shall mean the Constitution, By-Laws, rules, regulations,
resolutions and agreements of the NFL Entities, as they may be in effect from
time to time.

     "NFL Season" shall mean the season (customarily commencing in July and
ending the following December or January) established by the NFL for playing NFL
professional football games. "NFL Season" shall include all pre-season and
regular season games but shall not include any post-season games unless
specifically stated in this Agreement.

     "NovaCare Complex" shall mean the combined corporate/team headquarters
complex to be constructed by or for the Eagles in the Territory, including any
replacements thereof constructed during the Term. For purposes of the provisions
of this Agreement that create

                                       2
<PAGE>

obligations for the Eagles, the term "NovaCare Complex" shall not include the
clinic that NovaCare has the right to construct at the site of the NovaCare
Complex unless specifically stated in the Agreement.

     "NovaCare Marks" shall mean NovaCare's logos, name, trademarks, tradenames
and copyrighted design elements, as they may exist from time to time, including
any NovaCare Marks incorporated as part of the Name.

     "NovaCare Marketing" shall have the meaning set forth in Article VI.A.

     "Occupational Health" shall mean the service category consisting of the
provision of a system of overall care and case management services with respect
to the full continuum of diagnosis, treatment and rehabilitation care that
arises from workplace injuries; provided, however, that Occupational Health
shall not be construed to apply to any Person providing physician or other
services that may consist of one or more elements of the foregoing but does not
include all of such services.

     "officially opens" and words of similar import applied to the NovaCare
Complex shall mean the date on which the Eagles obtain a certificate of
occupancy from the appropriate governmental authority for the office building
that will house the corporate/team headquarters that will form a part of the
NovaCare Complex.

     "Person" shall mean an individual, corporation, partnership, limited
liability company, estate, trust, joint venture, association, government (and
any branch, division, agency or instrumentality thereof), governmental entity,
or other entity.

     "Promotions" shall mean, collectively, the advertising and other promotion
rights described in Article III.A, and the naming rights described in Articles
III.B, in each case, subject to the terms of this Agreement.

     "Required Products and Services" shall mean, collectively, the equipment,
products and services that NovaCare is obligated to provide to the Eagles Team,
its current and former players and staff in each Contract Year during the Term
pursuant to this Agreement.

     "Term" shall have the meaning set forth in Article II.

     "Territory" shall mean the City of Philadelphia and the other areas forming
the Eagles Territory under NFL Rules.

     "Training Staff' shall mean a head trainer plus at least two assistant
trainers, a strength and conditioning coach and at least one assistant, and any
additional staff generally used from time to time by NFL teams whose functions
fall within the type of products or services provided by NovaCare or that are
included in the Category (for example, nutrition advisor).

                                       3
<PAGE>

     "Use Restrictions" shall mean the applicable provisions of all (i) Laws;
(ii) NFL Rules; and (iii) contractually imposed requirements of any location or
site where a Promotion or

NovaCare Marketing activity may be held or presented, including Veterans Stadium
and any New Stadium; provided, however, that this 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.

II.  Term
     ----

     The term of this Agreement shall begin on the date hereof and shall end on
the last day of the Contract Year in which the "Year 25" payments set forth on
Exhibit B have been made, unless sooner terminated pursuant to Article IX (the
"Term").

III. Advertising and Promotional Rights: Naming Rights
     -------------------------------------------------

     A.   The Eagles will provide for NovaCare's benefit the advertising and
other promotion rights specified in Exhibit A during each Contract Year of the
Term, subject to the terms and conditions specified in this Agreement (including
Exhibit A) and NovaCare's compliance with the provisions of this Agreement. The
Eagles will not, however, be obligated to begin providing or otherwise making
available any Promotions with respect to the NovaCare Complex until after the
official opening of the NovaCare Complex occurs. NovaCare shall only use the
Promotions that represent advertising or sponsorship opportunities to advertise
and promote products or services in the Category and the general corporate image
of NovaCare.

     B.   Subject to the terms and conditions specified in this Agreement and
NovaCare's compliance in all material respects with the provisions of this
Agreement, the Eagles shall cause NovaCare to receive the following rights at or
with respect to the NovaCare Complex from and after its official opening:

          (i)  the exclusive right (subject to Articles VI.B and XIII.B) to name
and create a logo for the NovaCare Complex. If the Eagles do not approve any
proposed name and logo prior to the official opening of the NovaCare Complex,
the name shall be "NovaCare Complex" and shall include logo recognition for
NovaCare in the form set forth on Exhibit D;

          (ii) the exclusive right to receive Name recognition on the facade of
the main office complex; the marquee at the entrance to the complex; the
road/directional signage leading to the complex (to the extent the Eagles
control such signage); the rooftop of the main office complex; the rooftop of
the indoor practice facility (if in a separate building on the site of the
NovaCare Complex); a reasonable number of locations on the fencing surrounding
the practice fields and in the center of the practice fields; the goal pads on
the practice fields; the facade of the press conference podium; and on all
apparel worn by key facility (such as groundkeepers) and Training Staff. The
precise size and location of all Name recognition described under the preceding
sentence shall be proposed by the Eagles and subject to the approval of
NovaCare, which shall not be unreasonably withheld. All such recognition shall
comply with all Use

                                       4
<PAGE>

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 the
Eagles at its expense, except that NovaCare shall provide any required artwork
and design at its expense as and when reasonably requested by the Eagles; and

          (iii) the exclusive right to Name recognition on any other permanent
signage at the NovaCare Complex, other than signage using the Licensed Marks and
the logos, name, trademarks, tradenames and copyright design elements associated
with the NFL, and customary labeling on products or point-of-sale material.

     C.   Notwithstanding anything to the contrary in Article III.B, the Eagles
shall have the right to display temporary signage at the NovaCare Complex on an
event-by-event basis (including both single and multiple day events) that relate
to or are sold in connection with the event for or by Persons who are not
Category Competitors; provided, however, that the Eagles shall not place any
temporary signage on the facade of the main office building without the prior
consent of NovaCare, which shall not be unreasonably withheld. Temporary signage
shall be displayed only during each event and for a reasonable time before the
beginning and after the conclusion of each event to allow for set-up and removal
(or covering up).

     D.   The Eagles shall cause the NovaCare Complex to be constructed to
conform to the high level of quality generally associated with the
corporate/team headquarters of NFL teams, and shall include a high quality press
room and high quality training room for players. The Eagles shall cause the
NovaCare Complex to be maintained in a high quality manner but shall not be
obligated to make capital improvements to cause the NovaCare Complex to conform
to evolving standards of NFL quality during the Term.

     E.   The Eagles shall refer, and shall use reasonable commercial efforts to
cause and encourage others to refer, to the NovaCare Complex by its title name.

IV.  Exclusivity
     -----------

     A.   [Intentionally Omitted]

     B.   During the Term, the Eagles shall not do any of the following:

          (i)   grant any Person the right to use the Licensed Marks in
connection with the advertising or promotion of products or services in the
Category;

          (ii)  grant any Person the right to identify itself as a provider or
supplier of products or services in the Category to the Eagles, its players or
its Training Staff;

          (iii) grant any Person one or more of the Promotion rights other than
the rights to acquire tickets, suites, parking passes and other rights generally
available to the public in the

                                       5
<PAGE>

Category or grant any Person any other present or future promotional,
advertising or sponsorship activities (including at any New Stadium) in the
Category;

          (iv) grant to any Category Competitor the right to use the Licensed
Marks in connection with advertising or promotion;

          (v)  grant to any Category Competitor the right to identify itself as
a sponsor of, or as a provider or supplier of products or services to the
Eagles, its players or its Training Staff; or

          (vi) grant to any Category Competitor one or more of the Promotion
rights (other than the rights to acquire tickets, suites, parking passes and
other rights generally available to the public) or grant any Category Competitor
any other present or future promotional, advertising or sponsorship activities
(including at any new Stadium).

     For purposes of this Section IV.B., a Person which is not a Category
Competitor at the time such Person enters into a promotional, advertising or
other sponsorship arrangement with the Eagles, but which becomes a Category
Competitor during the pendency of such arrangement (and any renewal or extension
of such arrangement), shall be subject only to Article IV.B(i)-(iii) but shall
not be a Category Competitor for any other purpose in this Agreement, including
Article IV.B(iv)-(vi), and shall be permitted to use the Licensed Marks and
appropriate designations in all general corporate advertising. The parties
expressly agree that any restrictions under this Agreement on the Eagles' right
to enter into arrangements with Category Competitors or other Persons apply only
to the acts of the Eagles with respect to media under their control and not to
the acts of third parties (such as Veterans Stadium or the broadcasters of Games
involving the Eagles team).

     C.   Except as expressly set forth in Section III.B and IV.B., the Eagles
shall not be subject to any restrictions of any kind or description on its
business activities, including, without limitation, any restrictions on its
right to license the Licensed Marks, grant rights to or sell promotional,
advertising or sponsorship products or services, acquire exclusive or non-
exclusive sources of supply of products or services, or otherwise permit third
parties to be associated with the Eagles, their players, coaches and staff.
Without limiting the generality of the preceding sentence, the Eagles shall have
the right (subject to Article III.B) to engage in transactions of any type with
Persons engaged in (i) the retail distribution of conditioning and nutritional
services (e.g., GNC, Bally's health club, Weight Watchers), (ii) the retail
distribution of orthotic and prosthetic products, where either orthotics or
prosthetics are not a primary aspect of the distributor's business (e.g.,
pharmacies, general retailers, medical supply companies), provided that such
transaction does not infringe on NovaCare's right to provide such services
directly to the Eagles, or (iii) in the hospital, medical or surgical care
categories or any health care category other than the Category, including,
without limitation, the right to renew, extend or replace its current
sponsorship and promotion agreement with the Allegheny Health, Education and
Research Foundation and its affiliates (together, "Allegheny"), which the Eagles
represent and Warrant does not provide Allegheny with any rights in the
Category, even if (subject to Article IV.B(i)-(iii)) Allegheny later becomes a
Category Competitor. In addition, the Eagles shall have

                                       6
<PAGE>

the right to acquire at its own expense from any third-party any product or
service (or any brand of any product or service) in the Category for the use of
its players or staff that is not supplied by NovaCare under Article V.H of this
Agreement, provided that the supplier of such services is not granted the right
to identify itself as a supplier to the Eagles.

     D.   [Intentionally Omitted].

     E.   If the NovaCare Complex is constructed at the site in Philadelphia
commonly referred to as the "Navyard," the Eagles shall cause NovaCare to
receive identification on the street name to be incorporated in the address of
the NovaCare Complex (but such identification need not extend to the street
itself). If the NovaCare Complex is constructed at any other site, the Eagles
shall use reasonable commercial efforts to obtain such street name
identification for NovaCare on the street name to be incorporated in the address
of the NovaCare Complex.

V.   Sponsorship Fees and Other Consideration
     ----------------------------------------

     In consideration for the rights granted to it under this Agreement, in each
Contract Year during the Term NovaCare shall pay the Eagles a cash sponsorship
fee, and shall provide the Required Products and Services, in accordance with
the following:

     A.   For the rights granted to it for the first Contract Year during the
Term, NovaCare shall pay the Eagles the amount of $850,000, of which $425,000
shall be paid contemporaneously with the execution of this Agreement and
$425,000 shall be paid on December 15, 1997.

     B.   Unless the NovaCare Complex has officially opened, in each of the
second (beginning January 1, 1998), third (beginning January 1, 1999) and fourth
(beginning January 1, 2000) Contract Years of this Agreement, and, if ground has
been broken on or prior to July 31, 2001 and construction is proceeding, in each
subsequent Contract Year until the NovaCare Complex officially opens, NovaCare
shall pay the Eagles the amount of $900,000 per Contract Year, which payments
shall be made in three equal installments of $300,000 on June 1, September 1 and
November 1 of each Contract Year, except that the June 1, 2001 payment may be
deferred until August 1, 2001 if ground has not been broken prior to June 1.

     C.   If ground has not been broken on the NovaCare Complex by July 31,
2001, or if the NovaCare Complex has not officially opened by July 31, 2004,
NovaCare shall have the right to terminate this Agreement in accordance with
Article IX.B(i). If ground has not been broken on the NovaCare Complex by July
31, 2003, the Eagles shall have the right to terminate this Agreement in
accordance with Article IX.C(ii). If neither party exercises its right of
termination in accordance with Article IX.B(i) or IX.C(ii), as the case may be,
the aggregate cash sponsorship fee in each Contract Year shall continue to be
$900,000 and shall continue to be payable on each June 1, September 1 and
November 1, until the official opening (or, if applicable, termination), occurs.

                                       7
<PAGE>

     D.   If the NovaCare Complex officially opens on or prior to the first Game
played by the Eagles Team in any Contract Year, the aggregate cash fee that
NovaCare is obligated to pay to the Eagles in that Contract Year shall be
increased to the amount set forth next to "Year 1" on Exhibit B (i.e.,
$1,400,000) and the aggregate cash sponsorship fee due in each of the twenty-
four subsequent Contract Years shall be equal to the amount set forth on Exhibit
B for years 2-25, as applicable. The aggregate amount due in the Contract Year
in which the official opening occurs and each subsequent Contract Year shall be
paid in four equal installments on March 1, June 1, September 1 and December 1
of each Contract Year (i.e., each installment shall be equal to one-fourth of
the aggregate cash sponsorship fee due in such Contract Year), except that if
the official opening is after March 1 and before June 1, the first installment
of the Year 1 payment may be paid on the official opening date, and if the
official opening is after June 1 and before the first Game of that NFL Season,
NovaCare shall pay $300,000 on June 1, the amount of the first and second
installment of the year 1 payment in excess of such $300,000 payment (i.e., an
additional $400,000) on the official opening date, and the two remaining
installments of $350,000 each on September 1 and December 1.

     E.   Notwithstanding the provisions of Article V.B. or C., if the NovaCare
Complex officially opens at any time during any Contract Year in which the
aggregate cash sponsorship fee would otherwise have been $900,000 and the Eagles
Team has already played one or more Games, the aggregate amount due in that
Contract Year shall be $900,000 plus an additional amount equal to (i) $500,000
multiplied by (ii) a fraction, the numerator of which shall be the remaining
number of Games the Eagles Team is scheduled to play during the balance of the
applicable NFL Season and the denominator of which shall be the total number of
Games the Eagles Team is scheduled to play during that NFL Season. (For example,
if the Eagles Team has played four pre-season and six regular season Games out
of a schedule of twenty Games, the fraction will be 10/20 and the additional
amount due will be $250,000). If the official opening occurs after June 1 but
prior to September 1, one-half of the additional amount shall be paid on each of
the September 1 and November 1 payment dates in the applicable Contract Year. If
the official opening occurs after September 1, the entire additional amount
shall be paid on the November 1 payment date in the applicable Contract Year (if
the opening has occurred by that date) or the December 15 of that Contract Year
(if the official opening occurs after November 1 but before the conclusion of
the applicable NFL Season). The aggregate cash sponsorship fee for the full
Contract Year immediately following the Contract Year in which the official
opening occurs shall be the amount set forth next to "Year 2" on Exhibit B and
the aggregate cash sponsorship fee for each succeeding Contract Year shall be
the amount set forth on Exhibit B for years 3-25, as applicable. Such aggregate
amounts shall be paid in four equal installments on March 1, June 1, September 1
and December 1 of each Contract Year.

     F.   All cash payments due to Eagles shall be made by wire transfer of
immediately available funds over the U.S. federal reserve wire transfer system
to the account described on Exhibit E, unless the Eagles shall designate another
account to NovaCare at least five (5) business days prior to the date the
payment is due. If any payment date is not a business day, the payment shall be
due on the next immediately succeeding business day. All payments shall be made
in U.S. dollars without set-off, reduction, or withholding of any kind (unless
NovaCare

                                       8
<PAGE>

shall have obtained a final and non-appealable determination that it is
owed an amount by the Eagles, in which case it may set-off the unpaid portion of
such amount) and time shall be of the essence with respect to each payment.

     G.   If any amount payable under this Agreement is not paid when due, such
amount shall bear interest until paid at the rate of 1.0% per month (or the
maximum rate of interest permitted by law from time to time if 1% per month
exceeds such maximum rate) but the paying of interest shall not limit any other
rights or remedies of the party to which such amount is owed may have.

     H.   NovaCare shall provide (and if it does not or cannot itself provide,
shall pay) for all rehabilitation, occupational therapy, physical therapy,
conditioning and nutritional services for the Eagles, and the coaches and
current and (subject to the next sentence) former players of the Eagles Team,
except that NovaCare shall not be obligated to provide or pay for any
nutritional services or general fitness related services for the coaches and
front office staff of the Eagles unless the provisions of such nutritional
and/or fitness related services have been authorized by the Eagles and are
reimbursable under applicable payor (which shall not be construed to be the
Eagles under any circumstances) arrangements. NovaCare's obligations under the
preceding sentence shall include, without limitation, providing all such
services to former Eagles players in locations where NovaCare maintains an
outpatient rehabilitation center. Except in situations where a current or former
player or coach, as applicable, specifically requests or independently seeks
such services from a provider other than NovaCare (in which case NovaCare shall
have no obligation to pay for such service), NovaCare shall have both the
obligation and the right to provide or pay for all such rehabilitation,
conditioning and nutritional services to such individuals. NovaCare shall have
the right, however, to bill the appropriate payors (which shall not be construed
to be the Eagles under any circumstance) for rehabilitation and for related
medical supplies and services provided at NovaCare centers or NovaCare locations
other than the outpatient clinic it may construct at the NovaCare Complex or
other facilities at the NovaCare Complex. NovaCare acknowledges that under the
Training Staffs current practice substantially all injuries or conditions
requiring the type of services rendered at off-site NovaCare centers or
locations are provided on-site for players, coaches and staff residing in the
Territory and that no payor is filed or such services, that it is the intention
of the Eagles to cause its Training Staff to continue such practice during the
Term and that NovaCare shall not cause or attempt to cause the Training Staff to
change its current practice with respect to the use of such off-site or outside
providers. NovaCare shall not have the right to bill any payor for services to
the Eagles, its players, coaches or staff other than in accordance with this
Article V.H.

     I.   (i) Subject to Article V.I(ii) below, during the Term NovaCare shall
pay all compensation and other costs of the type set forth on Exhibit F
associated with the employment of the current Training Staff. It is the
understanding of the parties that so long as each member of the current Training
Staff remains employed, he or she shall have a total compensation package that
is at least equal to what he or she would have received if employed by the
Eagles and that the Eagles would generally compensate such staff in an amount
comparable to what similar training staff employed at other major market NFL
teams receive, with perquisites

                                       9
<PAGE>

consistent with what comparable Eagles employees receive ("Prevailing NFL
Wage"). Exhibit F sets forth the total compensation obligation that the Eagles
reasonably expect to be due to the current members of the Training Staff in the
1997-99 Contract Years and NovaCare shall pay all such amounts plus any
additional amounts necessary to pay any current members of the Training Staff a
Prevailing NFL Wage during the term of their employment with the Eagles, except
that any person bound by an employment agreement shall receive at least the
amount set forth in his or her employment agreement during the term of such
agreement. If the Head Trainer, the first assistant to the Head Trainer or the
Head Strength and Conditioning coach currently employed by the Eagles are
replaced at any time during the Term in accordance with this Agreement, and the
Eagles select a replacement that is not then employed by NovaCare, NovaCare
shall be obligated to compensate the replacement at an amount equal to the
Prevailing NFL Wage if so requested by the Eagles because, in its reasonable
business judgment, the services of such replacement could not reasonably be
expected to be obtained at a lower amount. The total compensation of any new
member of the Training Staff that is a NovaCare employee at the time of his or
her selection, in accordance with Article V.I(ii) below (including any person
selected to be Head Trainer, the first assistant to the Head Trainer or the Head
Strength and Conditioning Coach), shall be determined in accordance with
NovaCare's employment policies, subject to reasonable consultation with the
Eagles, and need not be equal to the Prevailing NFL Wage. If the parties are
unable to obtain sufficient information about the Prevailing NFL Wage in any
Contract Year in which a Prevailing NFL Wage is due to a member of the Training
Staff, the aggregate compensation of the applicable member of the Training Staff
shall be increased by an amount agreed by the parties or, if they cannot agree,
by the rate of increase in the compensation of the coaching staff of the Eagles
Team (exclusive of the head coach and bonuses based upon team performance).

          (ii)   Not later than the end of the current NFL Season, the Eagles
and NovaCare shall take all steps necessary to cause the current members of the
Eagles' Training Staff to become employees of NovaCare. If the Eagles wish to
hire new members of the Training Staff or make any material changes in the day-
to-day reporting functions of the Training Staff during the Term, the Eagles
shall consult with NovaCare with respect to any possible new hires or reporting
function changes and, except with respect to the positions of Head Trainer,
first assistant to the Head Trainer and Head Strength and Coordinating Coach,
shall select a person proposed for its approval by NovaCare, the Eagles'
approval not to be unreasonably withheld. With respect to the positions of Head
Trainer, first assistant to the Head Trainer and Head Strength and Coordinating
Coach, the Eagles shall consider any qualified candidates recommended by
NovaCare that satisfy any criteria established by the Eagles, as well as any
candidates separately identified by the Eagles, but ultimately shall have the
right to make selections for those positions in its sole discretion. Subject to
compliance with Laws, the Eagles shall retain all final termination and
management authority with respect to the Training Staff, including the right to
delegate to the Head Trainer final decision-making ability within the areas of
the Head Trainer's functions; provided, however, that the Eagles shall not
require NovaCare to hire any person for the Training Staff unless that person
agrees not to accept any compensation or other remuneration from a Category
Competitor, other than dividends or distributions with respect to publicly
traded securities. Except as expressly set forth in this

                                       10
<PAGE>

Article V.I, NovaCare shall not have any consultation rights with respect to any
other hiring or reporting functions of Eagles' personnel, and expressly
recognizes that the Eagles' medical director and ancillary medical personnel are
currently provided (and may in the future continue to be provided) through other
Eagles' sponsors.

     J.   NovaCare shall provide attire to the Training Staff featuring the
Eagles' and NovaCare's logos at NovaCare's expense. All staff attire must be
approved by the Eagles and NovaCare and must comply with NFL Rules. NovaCare
acknowledges that under current NFL Rule, the Training Staff may not wear such
attire during game day; the Eagles shall however, authorize the wearing of such
attire to the extent permitted by any future changes in NFL Rules. All travel
expenses of the Training Staff for Eagles-related activities will be the
responsibility of the Eagles.

     K.   NovaCare shall provide, at its sole expense, the quantity and quality
of all medical and training supplies, and all rehabilitation equipment,
generally used by a majority of NFL teams from time to time during the Term that
is of the type or within the categories set forth on Exhibit C (the "Required
Supplies and Equipment"). If in any Contract Year the Eagles shall request any
type or quantity of supplies or equipment that NovaCare does not believe it is
obligated to provide at its expense, NovaCare shall promptly set forth the basis
of its objection in writing and the parties shall thereafter negotiate in good
faith to resolve their differences; each party shall, however, retain the right
to seek arbitration under Article XXII. Until its objection is resolved,
NovaCare shall continue to supply the quantity and quality of medical and
training supplies, and the rehabilitation equipment of the type set forth on
Exhibit C, it believes are generally used by a majority of NFL teams at that
time (and in any event at least the Required Supplies and Equipment it provided
in the immediately prior NFL Season).

VI.  NovaCare Marketing; Production and Approval of Promotional and Marketing
     ------------------------------------------------------------------------
Materials
---------

     A.   Subject to the limitations set forth in this Agreement, (i) NovaCare
shall have the right to use the Licensed Marks in connection with promoting and
advertising its rights as a sponsor of the Eagles and as the exclusive provider
(or "official provider" or any similar designation approved by the Eagles in
their reasonable discretion) to the Eagles Team of products or services in the
Category ("NovaCare Marketing"), as well as the right to use the Name and, so
long as it satisfies the definition of Category Competitor, the Licensed Marks
for general promotion, advertising and business purposes, but may not use the
Licensed Marks or the Name for the purpose of promoting or advertising products
or services not included in the Category or, subject to Article XIII.B, in
conjunction with any name other than the "NovaCare" name used alone or in
conjunction with a generic description relating to the Category (such as
NovaCare Nutrition), and (ii) the Eagles shall have the right to use the
NovaCare Marks to perform its obligations to NovaCare under this Agreement, the
right to use the Name for general promotion, advertising and business purposes,
and the exclusive right to exploit commercially the Name on products and
merchandise.

     B.   Notwithstanding anything to the contrary contained in this Agreement,
(i) all commercials, advertisements, promotions and other activities authorized
by the Eagles under this

                                       11
<PAGE>

Agreement, whether constituting a Promotion or any aspect of NovaCare Marketing,
and all proposed uses of the NovaCare Marks at the NovaCare Complex (including
as part of the Name) shall be subject to the Eagles' review and prior approval,
which may be granted or withheld in the Eagles' reasonable discretion, (ii) all
uses by the Eagles of the NovaCare Marks that are authorized under this
Agreement shall be subject to NovaCare's review and prior approval, which may be
granted or withheld in NovaCare's reasonable discretion. In order to facilitate
each party s review and to maintain the high standards, style, appearance,
propriety and quality associated with each party and its employees, if either
NovaCare wishes to use the Licensed Marks, or the Eagles wish to use the
NovaCare Marks, it shall submit to the other party the concept, keylines,
artwork, video, audio and/or storyboard for any proposed commercial,
advertisement or promotion using the Licensed Marks or NovaCare Marks, as the
case may be, before commencing production of any such commercial, advertisement
or promotion or undertaking such activity (or representing to a third party that
it will be authorized to conduct or execute such commercial, advertisement,
promotion or activity). Once the Eagles have approved any particular proposed
use of the Licensed Marks or NovaCare has approved any proposed use of the
NovaCare Marks, the party that has received the approval may make additional
uses of the Licensed Marks or the NovaCare Marks, as the case may be, that are
similar to the approved use, except that the party that received the approval
shall cease any similar use within a reasonable time if the other party
reasonably objects.

     C.   (i)  With respect to each element of a Promotion or of NovaCare
Marketing which includes material to be broadcast, published, distributed or
displayed, NovaCare shall prepare and produce such material, at NovaCare's sole
expense, in final form and shall provide such material to the Eagles at least
thirty (30) days prior to the first date on which such Promotion or NovaCare
Marketing is to be broadcast, published, distributed or displayed. The form,
content and presentation of each Promotion or NovaCare Marketing shall be
subject to the approval of the Eagles, the Use Restrictions and the Standards
and Practices of the applicable broadcasters, telecasters or publishers. Any
commercial or government censor and/or clearance requirements, and all matters
and costs with respect to any NovaCare Marketing or the fulfillment of any
Promotion opportunity granted to it by the Eagles under this Agreement (e.g.,
the cost of producing a commercial but not the cost of the television time
granted to it), shall be the sole responsibility, financial and otherwise, of
NovaCare, except to the extent set forth in Article III.B or elsewhere in this
Agreement.

          (ii) With respect to each authorized use of the NovaCare Marks to be
made by the Eagles which includes material to be broadcast, published,
distributed or displayed, the Eagles shall prepare and produce such material, at
the Eagles sole expense, in final form and shall provide such material to
NovaCare at least thirty (30) days prior to the first date on which such
material is to be broadcast, published, distributed or displayed. The form,
content and presentation of such material shall be subject to the approval of
NovaCare, the Use Restrictions and the Standards and Practices of the applicable
broadcasters, telecasters or publishers. Any commercial or government censor
and/or clearance requirements, and all matters and costs with respect to any
such material, shall be the sole responsibility, financial and otherwise, of the
Eagles, except to the extent expressly set forth in this Agreement.

                                       12
<PAGE>

     D.   Each party shall use its best efforts to notify the other, in writing,
of its approval or disapproval of a submitted item or materials (a "Proposal")
within ten (10) business days after its receipt of the Proposal. In the event
the receiving party has not notified the party making the Proposal of its
approval or disapproval of the Proposal within such 10-day period, the party
making the Proposal shall notify the receiving party in writing of that fact.
Upon receipt of such written notice, the receiving party shall have until the
end of the next business day either to approve or disapprove the Proposal. If
the receiving party has not responded by the end of the next business day, the
Proposal shall be deemed approved. After a Proposal has been approved, the party
making the Proposal shall not depart from the Proposal in any material respect
without the further review and prior approval of the receiving party.

     E.   Under no circumstances shall the Eagles approve "Lotteries," "games of
chance" or any other type of Promotion or NovaCare Marketing which the Eagles,
in their sole discretion, believes reflects unfavorably upon or disparages the
Eagles or their players, coaches or staff.

     F.   The rights granted to NovaCare under this Agreement shall not be
construed to include the right to manufacture, distribute, give away or sell any
product which incorporates any Licensed Mark or to use the Licensed Mark in
combination with the name, logo, trademark or other intellectual property of any
party other than NovaCare or any NovaCare subsidiary to which it is permitted to
assign its rights under this Agreement pursuant to Article XII.A(ii).

     G.   Each party's approval of any materials submitted to it is conditioned
upon the submitting party causing such materials to be in compliance with all
Laws and Use Restrictions, and any approval should not, therefore, imply a
representation that the approving party believes that such materials comply with
all Laws and Use Restrictions.

VII. Goodwill And Property Rights
     ----------------------------

     A.   NovaCare recognizes that (i) a portion of the value of the Licensed
Marks is attributable to goodwill, (ii) the goodwill attached to the Licensed
Marks belongs exclusively to the Eagles and/or an NFL Entity and (iii) such
Licensed Marks have secondary meanings in the minds of the public. NovaCare
shall not, during the Term or thereafter, challenge the property rights of the
Eagles or of any NFL Entity in and to the Licensed Marks, or challenge the
validity of the Licensed Marks and the Eagles' right to grant rights and
licenses relating to the Licensed Marks (other than grants that constitute a
breach of NovaCare's rights under this Agreement), including, without
limitation, the rights and licenses granted under this Agreement.

     B.   The Eagles recognize that (i) a portion of the value of the NovaCare
Marks is attributable to goodwill; (ii) the goodwill attached to the NovaCare
Marks belongs exclusively to NovaCare, and (iii) such NovaCare Marks have
secondary meanings in the minds of the public. The Eagles shall not, during the
Term or thereafter, challenge the property rights of NovaCare in and to the
NovaCare Marks or challenge the validity of the NovaCare Marks and NovaCare's
right to grant rights and licenses relating to the NovaCare Marks (other than
grants that constitute a breach of Eagles rights under this Agreement),
including, without limitation, the rights and licenses granted under this
Agreement.

                                       13
<PAGE>

      C.  Notwithstanding anything to the contrary contained in this Agreement,
the Eagles shall own and control all copyrights and trademarks including the
Licensed Marks and NovaCare shall own and control all copyrights and trademarks
including the NovaCare Marks. Nothing in this Agreement serves to assign, convey
or transfer any ownership right in any Licensed Mark to NovaCare, or any
NovaCare Marks to the Eagles. No copyright or trademark involving or making use
of a Licensed Mark may be procured or claimed by NovaCare without the prior
written permission of the Eagles, and any such copyright or trademark shall be
owned by and registered in the name of the Eagles or another entity designated
by the Eagles. No copyright or trademark involving or making use of a NovaCare
Mark may be procured or claimed by the Eagles without the prior written
permission of NovaCare, and any such copyright or trademark shall be owned by
and registered in the name of NovaCare or another entity designated by NovaCare.
NovaCare shall cause to appear on all materials used in the Promotions or
NovaCare Marketing or otherwise used or created in the exercise of the rights
granted to it under this Agreement appropriate copyright and/or trademark
notices in the name of the Eagles or an NFL Entity, as designated by the Eagles.
The Eagles shall cause to appear on all materials it uses or creates in the
exercise of its rights under this Agreement that use the NovaCare Marks an
appropriate copyright and/or trademark notice in the name of NovaCare.

VIII. Substitution for Unavailable Promotions: Changes in Technology
      --------------------------------------------------------------

      A.  NovaCare and Eagles acknowledge and agree that given an expected Term
of approximately twenty-nine years, certain of the Promotions may become
unavailable (e.g., due to cancellation of a particular television show), or
impossible or impracticable to provide, or may impose an economic burden on the
Eagles materially greater than the burden it could reasonably have expected to
incur on the date hereof (each an "Unavailable Promotion"). Subject to Article
IX.B(ii), the Eagles shall satisfy its obligations under this Agreement with
respect to any Unavailable Promotion if it offers to provide, in lieu of such
Unavailable Promotion, a different promotion, advertisement or marketing right
having substantially the same promotional value as the Unavailable Promotion, as
determined by the agreement of the parties (or if they cannot agree by an
arbitrator in accordance with Article XXII).

      B.  Certain of the Promotions set forth on Exhibit A require NovaCare to
deliver materials in a particular medium or format (e.g., Beta SP tapes). The
parties agree that if any such medium or format is generally superseded by a new
medium or format in the applicable industry, NovaCare shall supply such material
in the generally accepted medium or format if requested by the Eagles.

IX.   Termination
      -----------

      A.  This Agreement may be terminated by either party upon notice to the
other if any of the following shall occur:

          (i)   The relocation by the Eagles of the playing site of the home
Games of the Eagles Team to a stadium outside the geographic area currently
comprising the Philadelphia Designated Marketing Area (as defined by Neilson
Co.).

                                       14
<PAGE>

          (ii)  If the other party shall apply for or consent to the appointment
of a receiver, judicial manager, trustee, or liquidator of all or a substantial
part of its assets, files a voluntary petition in bankruptcy, or admits in
writing its inability to pay its debts as they come due, makes a general
assignment for the benefit of creditors, files a petition or an answer seeking
reorganization or arrangement with creditors or to take advantage of any
insolvency law, or files an answer admitting the material allegations of a
petition filed against it in any bankruptcy, reorganization, or insolvency
proceeding, or if any order, judgment, or decree shall be entered by any court
of competent jurisdiction, on the application of a creditor, adjudicating it a
bankrupt or insolvent or approving a petition seeking reorganization of it or
appointing a receiver, trustee, or liquidator of such party or of all or a
substantial part of its assets, and any such order, judgment, or decree shall
continue unstayed and in effect for any period of sixty (60) consecutive days.

          (iii) A final, non-appealable determination is made that the other
party has committed a material breach of this Agreement.

     B.   This Agreement may be terminated by NovaCare upon notice to the Eagles
if any of the following shall occur:

          (i)   Ground is not broken on the NovaCare Complex on or prior to July
31, 2001 or the NovaCare Complex does not officially open on or prior to July
31, 2004. These rights must be exercised by NovaCare by notice to the Eagles not
later than August 31, 2001 and August 31, 2004, respectively; if the right to
terminate because of the failure to break ground by July 31, 2001 is not
exercised by August 31, 2001, it may not be exercised in that Contract Year and
the right to terminate for the failure of the NovaCare Complex to be officially
opened shall be postponed until July 31, 2005 (and must be exercised by August
31, 2005). If, however, ground is not broken by July 31 in any Contract Year
subsequent to the 2001 Contract Year, NovaCare shall have the right to terminate
this Agreement by notice to the Eagles given by August 31 of that Contract Year;
if such termination right is not exercised by that August 31 such termination
right shall again lapse as to that Contract Year and the right to terminate for
the failure of the NovaCare Complex to be completed (and the date by which
notice of exercise of that termination right is due) shall each be postponed for
one additional year. The Eagles acknowledge that if NovaCare exercises its
termination right pursuant to this Article IX.B(i) NovaCare will have suffered
damages, the amount of which cannot be measured with precision. Accordingly,
upon exercise of the termination right by NovaCare with respect to the failure
to break ground, the Eagles shall pay NovaCare, as liquidated damages and not as
a penalty, the amount of Four Hundred Thousand Dollars ($400,000) not later than
the sixtieth (60th) day after notice of termination is given. Such liquidated
damages amount shall be NovaCare's sole and exclusive remedy for the failure of
the NovaCare Complex to be constructed, the loss of any related opportunities,
Promotions or NovaCare Marketing, and the termination of this Agreement, but
shall not limit the recourse of NovaCare for any other breaches of this
Agreement unrelated to such failure, loss or termination.

          (ii)  Notwithstanding anything to the contrary in Articles VIII.A and
XXI, if following the official opening of the NovaCare Complex there shall be a
final, non-appealable

                                       15
<PAGE>

determination that all or substantially all of the naming rights granted to
NovaCare under Article III.B are unavailable to NovaCare, except that if the
unavailability is the result of any act or omission of NovaCare the effective
date of the termination shall not be until eighteen months after the notice is
given.

     C.   This Agreement may be terminated by the Eagles upon notice to NovaCare
if any of the following shall occur:

          (i)   NovaCare fails to make any installment payment of the cash
sponsorship fee within five business days after receiving a notice from the
Eagles that such amount is past due.

          (ii)  Ground is not broken on the NovaCare Complex on or prior to July
31, 2003. This right must be exercised by the Eagles by notice to NovaCare not
later than August 31, 2003; if the termination option is not exercised by August
31, 2003, it may not be exercised in that Contract Year. If, however, ground is
not broken by July 31 in any subsequent Contract Year, the Eagles will have the
right to terminate this Agreement by notice to NovaCare given by August 31 of
that Contract Year, when the right shall again lapse as to that Contract Year.
The Eagles acknowledges that if it exercises its termination right pursuant to
this Article IX.C(ii), NovaCare will have suffered damages, the amount of which
cannot be measured with precision. Accordingly, upon exercise of this
termination right by the Eagles with respect to the failure to break ground, the
Eagles shall pay NovaCare, as liquidated damages and not as a penalty, the
amount of Four Hundred Thousand Dollars ($400,000) not later than the sixtieth
(60th) day after notice of termination is given. Such liquidated damages shall
be NovaCare's sole and exclusive remedy for the failure of the NovaCare Complex
to be constructed, the loss of any related opportunities, Promotions or NovaCare
Marketing, and the termination of this Agreement, but shall not limit the
recourse of NovaCare for any other breaches of this Agreement unrelated to such
failure, loss or termination.

     D.   Upon termination of this Agreement in accordance with this Article IX:

          (i)   NovaCare shall promptly cease all new uses of the Licensed Marks
and the title name of the NovaCare Complex, shall cause all prior uses of the
Licensed Marks and title name to cease during the succeeding 180 days and, not
later than thirty days after the giving of termination notice, shall pay the
Eagles all consideration due and payable (whether in cash or in kind) through
the date of termination, together, if the termination occurs (x) prior to the
official opening of the NovaCare Complex and during the NFL Season, with a pro
rata amount (based on the number of Games played versus the total number of
Games scheduled) of any additional consideration that would have been due in
that Contract Year or (y) after the official opening of the NovaCare Complex
with a pro rata amount (based on the number of days elapsed in the Contract
Year) of any additional consideration that would have been due in that Contract
Year.

          (ii)  The Eagles shall promptly cease all new uses of the NovaCare
Marks and the Name, and shall cause all prior uses of the NovaCare Marks and the
Name, other than on

                                       16
<PAGE>

permanent signage, to cease during the succeeding period of 180 days. The Eagles
shall use reasonable commercial efforts to remove any permanent signage using
the NovaCare Marks or the Name during such 180 day period, subject to extension
for any delay caused by the failure to obtain any required governmental or third
party approval notwithstanding its reasonable efforts to obtain such approval.
NovaCare shall pay all expenses of removal (including the costs associated with
obtaining any such approval) if the reason for the termination is an event under
Article IX.A(ii) or (iii) with respect to it or an event under Article IX.C(i).

X.   Indemnification Against Claims of Third Parties
     -----------------------------------------------

     A.   The Eagles shall indemnify NovaCare and hold NovaCare harmless from
and against any and all losses, costs, expenses, damages and liabilities
including, without limitation, reasonable attorneys' fees and other expenses of
defense (collectively "Liabilities and Expenses") incurred in connection with or
arising from any claim, suit, demand, litigation, arbitration, governmental
inquiry or other proceeding (a "Proceeding") commenced by any third party based
upon (i) the Eagles' misrepresentation in or breach of this Agreement, or (ii)
any claim that the Licensed Marks or the grant of rights to NovaCare under this
Agreement infringe the rights of any third party, or (iii) any claim relating to
or arising from the Eagles' operation of the NovaCare Complex, excepting only
those claims arising from or relating to the operation of clinic to be
constructed by NovaCare at the site of the NovaCare Complex or NovaCare's
negligence or willful misconduct.

     B.   NovaCare shall indemnify the Eagles and hold the Eagles harmless from
and against any and all Liabilities and Expenses arising from any Proceeding
commenced by any third party alleging or arising from (i) NovaCare's
misrepresentation in or breach of this Agreement, (ii) any claim that the
NovaCare Marks or the grant of rights to the Eagles under this Agreement
infringe the rights of any third party, (iii) any claim relating to the
advertising or promotion of NovaCare's products or services or any harm or
damage to any person or property as a result of any act or omission of NovaCare
or persons associated with it in the care or treatment of any person, including,
without limitation, any malpractice claim (the claims described in this clause
(iii) being collectively referred to as the "Treatment Claims"), or (iv) any
claim relating to or arising from NovaCare's operation of the clinic it may
construct at the site of the NovaCare Complex, excepting only those claims
arising from or relating to the Eagles operation of the remainder of the
NovaCare Complex or the Eagles' negligence or willful misconduct.

     C.   With respect to each separate matter brought by any third person
against which a party (referred to as the "Indemnitee") is indemnified by the
other party (referred to as the "Indemnitor") under this Article, the Indemnitor
shall be responsible, at its sole cost and expense, for controlling, litigating,
defending and/or otherwise attempting to resolve any Proceeding underlying such
matter, except that (i) the Indemnitee may, at its option, participate in such
defense or resolution at its expense and through counsel of its choice; (ii) if
the Indemnitor does not promptly and diligently pursue such defense or
resolution, the Indemnitee may, at its option, assume control of such defense or
resolution provided that the Indemnitor

                                       17
<PAGE>

shall continue to be obligated to indemnify the Indemnitee under this Agreement;
(iii) the Eagles and/or an NFL Entity shall control any and all Proceedings in
which the Licensed Marks (but no NovaCare Marks) are involved; (iv) NovaCare
shall control any and all Proceedings in which the NovaCare Marks (but no
Licensed Marks) are involved; (v) the parties shall cooperate in the defense of
any Proceeding involving both the Licensed Marks and the NovaCare Marks based on
the principle that, to the extent practicable and not disadvantageous to the
other party, NovaCare shall control all decisions relating to the NovaCare Marks
and the Eagles and/or an NFL Entity shall control all decisions relating to the
Licensed Marks, and that either party may seek to have claims relating to its
marks be severed, and (vi) neither Indemnitor nor Indemnitee shall agree to any
settlement without the Indemnitee's prior written consent (which shall not be
unreasonably withheld or delayed). In any event, Indemnitor and Indemnitee shall
in good faith cooperate with each other and their respective counsel with
respect to all such Proceedings.

      D.  With respect to each and every matter with respect to which any
indemnification may be sought hereunder ("Indemnified Matter"), upon the
Indemnitee's receipt of written notice pertaining to such Indemnified Matter,
Indemnitee shall promptly give reasonably detailed written notice to the
Indemnitor of the nature of such Indemnified Matter and the amount demanded or
claimed in connection therewith but the failure to give such notice shall not
affect its right to indemnification under this Agreement except to the extent
the ability of the Indemnitor to defend the action is adversely affected.

XI.   Entire Agreement: Amendment
      ---------------------------

      This Agreement constitutes the entire agreement between NovaCare and the
Eagles with respect to the subject matter hereof and supersedes all prior
agreements and understandings relating to the subject matter hereof. The
Agreement may be amended or supplemented only by a writing signed by NovaCare
and Eagles.

XII.  Governing Law: NFL Requirements
      -------------------------------

      This Agreement shall be governed by and construed in accordance with the
laws of the Commonwealth of Pennsylvania applicable to agreements made and to be
performed entirely in Pennsylvania. The parties' rights and obligations under
this Agreement shall in each case be subject to all NFL Rules.

XIII. Assignment: Name Changes
      ------------------------

      A.  Neither party may assign its rights, or delegate its duties under this
Agreement without the prior written consent of the other, which consent shall
not be unreasonably withheld, except that each party may assign all of its
rights and delegate all of its duties under this Agreement to an assignee of all
or substantially all of its assets (or to any legal successor by merger,
consolidation or otherwise) without the other's consent; each party may withhold
its consent to any partial assignment or partial delegation in its sole
discretion but otherwise may not unreasonably withhold its consent. No
assignment or delegation shall be permissible unless the assignee or delegate
assumes in writing the obligations of the assigning or delegating party

                                       18
<PAGE>

under this Agreement and, in the case of NovaCare, provides evidence reasonably
satisfactory to the Eagles of the assignee's ability to pay the required cash
sponsorship fees and furnish the Required Products and Services hereunder and,
in the case of the Eagles, provides evidence reasonably satisfactory to NovaCare
of its legal authority to assume and perform the Eagles' obligations under this
Agreement. Notwithstanding the foregoing, (i) the Eagles shall have the right to
assign to a commercial or institutional lender or other third party, or to an
affiliate or subsidiary of the Eagles organized to facilitate development of the
NovaCare Complex, all or any portion of its right to the cash sponsorship fees
under this Agreement, provided the assignee's right to receive such payments is
subject to any defenses NovaCare may have under this Agreement with respect to
its obligations to pay, the Eagles remains liable for its obligations under this
Agreement and the assignee acknowledges in writing NovaCare's rights under this
Agreement, and (ii) NovaCare shall have the right to assign one or more of the
Promotions to any direct or indirect subsidiary that does business under the
"NovaCare" name (or the NovaCare name in conjunction with a generic term
relating to the Category, such as NovaCare Nutrition) and that only engages in
the sale of products or services in the Category and other business activities
not material to its operations, provided that NovaCare owns both legally and
beneficially at least 80% of all outstanding shares of each class of capital
stock of such subsidiary, the remaining 20% of such class has been registered
under Section 12(g) of the Securities Exchange Act of 1934, as amended, and is
widely held, and the assignee acknowledges in writing that the right or rights
assigned to it are subject to the terms of this Agreement. Any assignment or
delegation not in compliance with this Article XIII. A shall be void.

     B.   If NovaCare assigns this Agreement to an assignee of all or
substantially all of its assets (or to any legal successor by merger,
consolidation or otherwise) in accordance with Article XIII.A or if NovaCare
changes its name or makes a generally applicable change in the NovaCare Marks,
NovaCare shall be entitled to rename the NovaCare Complex, cause the signage or
other recognition indicia at the NovaCare Complex to be changed and use the new
name in any Promotion using the Licensed Marks or the Name. If NovaCare
exercises its rights under the preceding sentence it shall consult with the
Eagles and obtain the Eagles' approval of any new name, which the Eagles shall
not unreasonably withhold. If NovaCare requests that any signage at the NovaCare
Complex or other recognition indica be changed, either as the result of a
renaming or a change in the NovaCare Marks, it shall pay all costs incurred by
the Eagles or its affiliates in effectuating the signage and/or other
recognition changes, all of which shall comply with the Use Restrictions and be
approved by the Eagles (such approval not to be unreasonably withheld), and
shall pay all other reasonable out of pocket costs incurred by the Eagles in
connection with the name change.

XIV. No Waiver
     ---------

     No failure of any party to give notice of or to seek a remedy for any
violation of this Agreement or to insist on strict performance hereunder shall
reduce, impair or affect such party's right to later seek such remedy or insist
on such performance with respect to the same or any other violation or failure,
regardless of such party's knowledge or lack of knowledge thereof.

                                       19
<PAGE>

XV.   Relationship of the Parties
      ---------------------------

      The relationship of NovaCare and the Eagles hereunder shall be solely that
of independent contractors and nothing herein shall be construed to create or
imply any relationship of employment, agency, joint venture, partnership or any
relationship other than that of independent contractors. NovaCare and the Eagles
acknowledge and agree that each of them is engaged in a separate and independent
business and neither shall state, represent or imply any interest in or control
over the business of the other.

XVI.  Notices
      -------

      All notices and other communications provided for hereunder shall be in
writing and shall be deemed effective only if and when delivered by hand, mailed
by prepaid certified or registered United States mail (return receipt requested)
or delivered by overnight courier service, addressed as follows:

<TABLE>
<CAPTION>
      If to NovaCare:                            If to Eagles:
      --------------                             ------------
      <S>                                        <C>
      NovaCare, Inc.                             Philadelphia Eagles Limited Partnership
      1016 West Ninth Avenue                     3501 South Broad Street
      King of Prussia, Pennsylvania 19406        Philadelphia, Pennsylvania 19148-5298
      Att:  Timothy E. Foster                    Att:  Len Komoroski
            Chief Executive Officer

                                                 with a copy to the same address to the
      with a copy to the same address to the     attention of Joe Banner
      attention of the General Counsel.
</TABLE>

or such other address as is given by notice.

XVII. Confidentiality
      ---------------

      A.  The parties may publicly disclose the existence of this Agreement but
shall not disclose to any Person its financial terms, except as expressly
permitted below.

      B.  The parties shall consult with and cooperate with one another on the
content and timing of all announcements relating to this Agreement.

      C.  Anything in this Article XXV to the contrary notwithstanding, (i) the
parties may disclose the financial terms of this Agreement (x) which have been
publicly disclosed (other than by a party in breach of its obligations under
this Article XVII), (y) to the extent that a party is or may become legally
compelled to disclose such information, and (z) to their respective owners,
officers, directors, attorneys, accountants and advisors, subject to equivalent
confidentiality requirements if it advises such persons of the confidentiality
requirements of this Agreement, and (ii) the Eagles may disclose such
information to any NFL Entity, the NFL Players' Association, any auditors
operating pursuant to the Collective Bargaining Agreement with the NFL Players'

                                       20
<PAGE>

Association, the Eagles' lenders and any parties involved in the planning,
development, financing or construction of the NovaCare Complex.

XVIII. Eagles Players: Endorsements
       ----------------------------

       This Agreement does not grant to NovaCare any rights with respect to the
use of the names or likenesses of Eagles players or coaches. NovaCare further
acknowledges that it shall not use the name or likeness of any player, coach or
staff person, as to constitute an endorsement of NovaCare or any of its products
or services unless NovaCare shall have first obtained the express written
consent of such player, coach or staff person.

XIX.   Representations and Warranties
       ------------------------------

       Each party hereto represents and warrants to the other that:

               a)   the execution, delivery and performance of this Agreement
                    has been duly and validly authorized by all necessary
                    corporate or partnership action;

               b)   this Agreement constitutes the legally valid and binding
                    obligation of such party; and

               c)   the execution, delivery and performance of this Agreement
                    will not violate or constitute a breach or default under any
                    other agreement by which it is bound.

XX.    No Third-Party Beneficiaries
       ----------------------------

       Nothing in this Agreement is intended or shall be construed to give any
other Person any legal or equitable right, remedy or claim under or in respect
of this Agreement or any provision contained in this Agreement.

XXI.   Invalidity
       ----------

       If any provision of this Agreement or the application thereof to any
Person or circumstance shall, to any extent, be invalid or unenforceable, the
remainder of this Agreement, or the application of such provision to Persons or
circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby and each provision of this Agreement shall be
valid and be enforceable to the fullest extent permitted by law. To the extent
that any determination of invalidity or unenforceability results in (i) NovaCare
not having one or more of the Promotions, the Eagles shall, if NovaCare has not
exercised any rights it may have under Article IX.B(ii), offer a different
promotion, advertisement or marketing right having substantially the same
promotional value as the Promotion not available to NovaCare, as determined by
the agreement of the parties (or if they cannot agree, by an arbitrator in
accordance with Article XXII), or (ii) the Eagles not receiving any Required
Products and Services, NovaCare shall offer different medical, training or
rehabilitation products, services or

                                       21
<PAGE>

equipment required by the Eagles having substantially the same value as the
Required Products and Services not received, or an increase in the cash
sponsorship fee equal to the retail value of Required Products and Services not
received, in each case as determined by the agreement of the parties (or if they
cannot agree by an arbitration in accordance with Article XXII).

XXII.  Arbitration:  Competent Courts
       ------------------------------

       A.  Except as otherwise expressly provided below, any and all disputes,
controversies, claims and differences between the parties arising out of or
relating to this Agreement, or any breach thereof, which cannot be settled
through correspondence and mutual consultation of the parties, shall be finally
settled by arbitration in accordance with the Rules of the American Arbitration
Association ("AAA"). The parties shall select a single arbitrator, or if they
cannot agree on an arbitrator, the AAA shall select such single arbitrator. If
either party does not participate in the selection of the arbitrator within ten
(10) days after service of the notice of demand for arbitration, then the AAA
shall select such arbitrator. Arbitration proceedings shall be held in
Philadelphia, Pennsylvania unless otherwise agreed to by the parties in writing.
The decision of the arbitrator shall be rendered within ninety (90) days of the
date on which arbitration proceedings are initiated, shall be final and binding
upon the parties hereto, shall not be subject to appeal and shall deal with the
questions of costs of the arbitration and all matters related thereto. The
arbitrator shall not be entitled to award punitive damages. Judgment upon the
award or decision rendered by the arbitrator may be entered in any court having
jurisdiction thereof (it being agreed by the parties that the Courts of Common
Pleas of Philadelphia, Pennsylvania have jurisdiction over them and the subject
matter hereof), or application may be made to such court for a judicial
recognition of the arbitration award or an order of enforcement thereof, as the
case may be. This agreement to arbitrate shall be specifically enforceable by
the parties, and they acknowledge and agree that, except as provided in the last
sentence of this Article XXII, they intend that all disputes, controversies or
claims of any kind, including disputes over whether and how to arbitrate, shall
be arbitrated. Notwithstanding this Article XXII, both parties acknowledge and
agree that equitable relief may be sought in any court of competent jurisdiction
in connection with the provisions of Articles XIII and XXIII.

       B.  To the extent provided in Article XXII.A, each party irrevocably
consents to the exclusive jurisdiction of the Courts of Common Pleas of the
Commonwealth of Pennsylvania located in Philadelphia or the United States
District Court for the Eastern District of Pennsylvania in any and all actions
and proceedings arising hereunder and irrevocably agrees to service of process
by registered or certified mail, return receipt requested, to such party's
address set forth herein.

XXIII. Equitable Relief
       ----------------

       The parties acknowledge that the rights granted under this Agreement by
the Eagles with respect to the Licensed Marks and by NovaCare with respect to
the NovaCare Marks, and the naming rights exclusively granted to NovaCare under
Article III.B, possess a special, unique and extraordinary character that makes
difficult the assessment of monetary damages that would be

                                       22
<PAGE>

sustained by the Eagles as a result of any unauthorized use of any Licensed Mark
or NovaCare as a result of any unauthorized use of the NovaCare Marks or
infringement of its exclusive naming rights under Article III.B. Accordingly, in
the event of any unauthorized use of any Licensed Mark by NovaCare (or a party
authorized or licensed by NovaCare), or any unauthorized use of any NovaCare
Mark by the Eagles (or a party authorized or licensed by the Eagles), or any
infringement of NovaCare's exclusive naming rights under Article III.B the party
so harmed shall, in addition to such other contractual, legal and equitable
rights and remedies as may be available to it, have, during the Term and after
the termination or expiration of this Agreement, the right to take such
reasonable steps as are necessary to prevent any further unauthorized use or
infringement of any such Licensed Mark, NovaCare Mark or naming rights, as the
case may be, without being required to prove actual damages or furnish a bond or
other security, including petitioning a court of competent jurisdiction for a
temporary restraining order, a preliminary or permanent injunction and/or a
decree for specific performance.

XXIV.  Force Majeure
       -------------

       If any party is unable to perform any of its obligations under this
Agreement due to an act of God, war, riot, civil commotion, labor dispute, fire,
act of public enemy, enactment of a government act, regulation or rule or any
other event which is generally regarded as force majeure (but specifically
excluding any lack of funds or credit), such inability to perform shall not make
such party liable to the other during the period in which the force majeure is
in effect (and for a reasonable period thereafter if the force majeure has
resulted in any harm that requires cure, provided the effected party is pursing
such cure in a commercially reasonable manner); provided, however, that if any
force majeure (including any casualty described in Article XXVI) causes there to
be (i) an Unavailable Promotion and the Eagles are unable to provide NovaCare
with a promotion, advertising or other right having substantially the same
promotional value as the Unavailable Promotion, the parties shall negotiate in
good faith a reduction in the consideration due from NovaCare during the
pendency of the force majeure that reflects the relative value of the
Unavailable Promotion to the value of all of NovaCare's rights under this
Agreement (which shall not be construed to have a value in excess of the amount
payable to the Eagles in the applicable Contract Year), or (ii) any Required
Products and Services to be unavailable to the Eagles and NovaCare is unable to
provide the Eagles with other medical, training or rehabilitation products,
services or equipment having substantially the same value as the unavailable
Required Products and Services, the parties shall negotiate in good faith an
increase in the cash sponsorship due to the Eagles during the pendency of the
force majeure that reflects the retail value of the unavailable Required
Products and Services. The preceding sentence shall not, however, limit the
parties' right to terminate in accordance with Article IX.B(i) or IX.C(ii) for
the failure to break ground by July 31, 2001 or July 31, 2003, as the case may
be.

XXV.   Insurance
       ---------

       The Eagles shall be obligated to maintain insurance reasonable in scope
and amount to cover personal injury and property damage arising from use,
construction or operation of the

                                       23
<PAGE>

NovaCare Complex and claims of the type described in Article X.A(iii). NovaCare
shall be obligated to maintain insurance reasonable in scope and amount to cover
personal injury and property damage arising from use, construction or operation
of a clinic at the site of the NovaCare Complex and claims of the type described
in Article X.B(iv), and to hold the Eagles harmless from any Treatment Claims.
Each party shall cause all such policies of insurance to include the other party
as an additional named insured and to cover claims arising from acts, omissions
or occurrences during the Term even if such claims are made after the end of the
Term, and shall furnish the other certificates of insurance evidencing that such
insurance is in effect if requested by the other (such requests to be made no
more often than twice per Contract Year and not to be made until construction of
the NovaCare Complex begins except with respect to coverage for the Treatment
Claims, which shall be implemented promptly after the date hereof). Neither
party shall cancel any insurance policy it is obligated to have in effect under
this Article XXV without giving the other at least thirty days prior notice.

XXVI.   Casualty
        --------

        If the NovaCare Complex is destroyed or otherwise rendered unusable for
any reason, the Eagles shall give NovaCare a notice within one year after the
casualty event stating whether it will rebuild or restore the NovaCare Complex.
If the notice states that the Eagles will not rebuild or restore the NovaCare
Complex, NovaCare shall have the right to terminate this Agreement by notice to
the Eagles given within the succeeding thirty (30) days. If the notice states
that the Eagles will rebuild or restore the NovaCare Complex, NovaCare shall not
have the right to terminate this Agreement as the result of the casualty unless
the rebuilt or restored NovaCare Complex does not officially open on or prior to
the third anniversary of the rebuild notice from the Eagles.

XXVII.  Annual Review
        -------------

        Beginning in 1998, NovaCare shall have the right to request a meeting
with the Eagles at least once per Contract Year to request replacements of
comparable value of any Promotions set forth on Exhibit A that it no longer
wishes to have. The Eagles shall, however, have no obligation to make any
replacements requested by NovaCare.

XXVIII. Interpretation
        --------------

        A.  All references to "Articles", "Schedules" or "Exhibits" shall be
references to the Articles, Schedules and Exhibits of or to this Agreement.

        B.  Terms for which meanings are defined in this Agreement shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine and
feminine forms. The term "including", whenever used in any provision of this
Agreement, means including but without limiting the generality of any
description preceding or succeeding such term. Each reference to a person or
entity shall include a reference to the successors and assigns of such person or
entity.

                                       24
<PAGE>

       C.  This Agreement shall be interpreted neutrally and without regard to
the party that drafted it and, in particular, no rule of construction shall be
applied as against any party that would result in the resolution of an ambiguity
contained herein against the drafting party.

       D.  The headings of the Articles of this Agreement are inserted for
convenience of reference only and shall be ignored in the construction or
interpretation of this Agreement.

       E.  The parties agree that any provision herein resulting in the
Training Staff's disemployment with the NFL is null and void and the parties
shall in good faith negotiate an alternative arrangement consistent with the
overall intent of this Agreement.

XXIX.  Counterparts
       ------------

       This agreement may be executed in one or more counterparts, which
together shall constitute one and the same instrument and shall become effective
when one or more counterparts have been signed by each of the parties and
delivered to each of the other parties.

       IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

NOVACARE, INC.                               PHILADELPHIA EAGLES LIMITED
                                             PARTNERSHIP

                                             By: Philadelphia Eagles, Inc.
By: /s/ Timothy E. Foster                        its general partner
   ------------------------------

       Name:_____________________            By: /s/ Joe Banner
       Title:____________________                ---------------------------
                                                 Joe Banner
                                                 Executive Vice President

                                       25
<PAGE>

                            CONSENT AND ASSUMPTION
                            ----------------------

                               November 19, 1999
                               -----------------

          The parties to this Consent and Assumption are NovaCare, Inc., a
Delaware corporation, with an office located at 1016 West Ninth Avenue, King of
Prussia, Pennsylvania 19406 ("NovaCare"), the Philadelphia Eagles Limited
Partnership, a Delaware limited partnership with an office located at 3501 South
Broad Street, Philadelphia, Pennsylvania 19148-5298 ("Eagles") and Select
Medical Corporation, a Delaware corporation with an office at 4718 Old
Gettysburg Road, Mechanicsburg, PA 17055.

RECITALS
--------

A.   NovaCare and Eagles are parties to a Naming, Promotional and Sponsorship
     Agreement dated October 1, 1997, as amended (the "Agreement").

B.   Select Medical has agreed to purchase the stock of the subsidiaries of
     NovaCare engaged primarily in the outpatient physical therapy and
     occupational health rehabilitation services business (the "Transaction").

C.   In connection with the Transaction, NovaCare wishes to assign all of its
     rights and delegate all of its duties under the Agreement to Select Medical
     (the "Assignment") and has requested that Eagles consent to such assignment
     and delegation.

D.   Eagles has agreed to give such consent, subject to the terms of this
     Consent and Assumption.

     Accordingly, the parties have agreed as follows:

     1.   Novacare and Select Medical represent and warrant to Eagles that they
          have consummated the Transaction contemporaneously with their
          execution of this Consent and Assumption.

     2.   For good and valuable consideration, the receipt and sufficiency of
          which are hereby acknowledged, Select Medical hereby assumes and
          agrees to pay, perform and discharge all of Seller's liabilities and
          obligations under the Agreement, whether matured or unmatured, fixed
          or contingent ("Liabilities"), and arising on or after the date of
          this Consent and Assumption. NovaCare hereby agrees that it shall
          remain liable for and shall pay, perform and discharge all Liabilities
          that arose prior to the date of this Consent and Assumption.

     3.   Select Medical will, at any time and from time to time upon the
          request of Eagles, execute and deliver or cause to be executed and
          delivered such other instruments
<PAGE>

          of assumption and take such other actions as may be reasonably
          requested by Eagles with respect to the assumption by Select Medical
          of NovaCare's liabilities and obligations under the Agreement.

     4.   At Eagles' request, Select Medical shall provide Eagles evidence
          reasonably satisfactory to Eagles of Select Medical's ability to pay
          the required cash sponsorship fees and furnish the Required Products
          and Services (as defined in the Agreement) under the Agreement.

     5.   Subject to paragraphs 1-4, Eagles hereby consents to the Assignment.

                                       NOVA CARE, INC.

                                       By: /s/ Richard Binstein
                                           ----------------------------
                                           Richard Binstein

                                       SELECT MEDICAL CORPORATION

                                       By: /s/ Michael E. Tarvin
                                           ----------------------------
                                           Michael E. Tarvin
                                           Vice President

                                       PHILADELPHIA EAGLES LIMITED PARTNERSHIP

                                       By: Philadelphia Eagles, Inc.

                                       By: /s/ Joe Banner
                                           ----------------------------
                                              Joe Banner
                                              Executive Vice President

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