ADDENDUM TWO TO LEASE AGREEMENT FOR A GAMMA KNIFE UNIT
Exhibit
10.30b
ADDENDUM TWO
TO LEASE AGREEMENT FOR A GAMMA KNIFE UNIT
TO LEASE AGREEMENT FOR A GAMMA KNIFE UNIT
This ADDENDUM TWO TO LEASE AGREEMENT FOR A GAMMA KNIFE UNIT (this “Addendum”) is dated
effective as of January 9, 2008, between The Community Hospital Group, Inc., dba JFK Medical
Center, a New Jersey corporation (“JFK”), and GK Financing, LLC, a California limited liability
company (“GKF”).
RECITALS
WHEREAS, on December 11, 1996, GKF and JFK executed a Lease Agreement for a Gamma Knife Unit
(the “Original Lease”), which lease agreement was amended by a certain Addendum One dated effective
as of July 1, 2002 (such Lease Agreement, as amended by such Addendum One, is referred to herein as
the “Lease”); and
WHEREAS, the parties desire to further amend the terms and provisions of the Lease as set
forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
AGREEMENT
1. Defined Terms. Unless otherwise defined herein, the capitalized terms used herein
shall have the same meanings set forth in the Lease.
2. Extension of Lease Term.
a. It is acknowledged that the First Procedure Date under the Lease was April 25, 2000, and
therefore, pursuant to Section 4 of the Lease, the initial Term of the Lease will expire at 11:59
p.m. on April 24, 2010.
b. In consideration of the “Reload” of the cobalt-60 source as described below, the Term of
the Lease as set forth in Section 4 thereof, is hereby extended for an additional five (5) year
period (the “Extension”), which Extension shall commence at 12:00 a.m. on April 25, 2010, and shall
continue until 11:59 p.m. on April 24, 2015, at which time the Term shall expire.
c. All references in the Lease to the “Term” shall be deemed to refer to the Term, as extended
by the Extension.
3. Cobalt Reload of the Equipment. Section 15 of the Lease is hereby deleted in its
entirety and replaced with the following:
“15.1 Cobalt Reload. Subject to the terms and conditions set forth
below, (a) GKF, at GKF’s cost and expense, shall reload the Equipment
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with new
cobalt-60 that meets the manufacturer’s radioactivity level specifications (the
“Reload”), which Reload shall be performed at the Site and shall include any
required installation and rigging; and (b) GKF shall use its commercially
reasonable efforts to perform the Reload in first quarter 2008, subject to
scheduling availability. It is anticipated that the Equipment will be unavailable
to perform procedures for approximately four (4) weeks due to the Reload process.
“15.2 JFK Support. In connection with the Reload, JFK, at JFK’s cost
and expense, shall provide GKF with JFK personnel (including JFK’s physicists) and
services upon request and as required by GKF, among other things, to oversee,
supervise and assist with construction and compliance with local, state and
federal regulatory requirements and with nuclear regulatory compliance issues and
the calibration of the Equipment.
“15.3 Permits. Notwithstanding the foregoing, the Reload shall be
performed by GKF only after all necessary and appropriate licenses, permits,
approvals, consents and authorizations, including, without limitation, the proper
handling of the cobalt-60 (collectively, the “Permits”), have been obtained by JFK
at JFK’s sole cost and expense (other than any filing or registration fees which
shall be paid for by GKF). The timing and procedure for such Reload shall be as
mutually agreed upon between the parties. Notwithstanding anything to the
contrary
contained in this Agreement, GKF makes no representation or warranty to JFK
concerning the Reload, and GKF shall have no obligation or liability to pay any
damages to JFK resulting therefrom, including, without limitation, any lost
revenues or profits during the period of time that the Equipment is unavailable to
perform procedures due to the Reload process.”
4. Per Procedure Payment. Commencing from and after the first procedure performed
using the Equipment following the completion of the cobalt-60 Reload, the per procedure payment for
the use of the Equipment as set forth in Section 7 of the Lease shall be equal to * per procedure.
5. No Responsibility for Additional Upgrades or Reloading. It is understood by the
parties that GKF is not responsible for any additional upgrades, hardware, cobalt reloading,
software changes and/or other modifications to the Equipment, except as expressly set forth herein
or otherwise agreed upon in writing by JFK and XXX.
0. Assignment
by GKF to Subsidiary. GKF may, at any time, assign all of its rights and
obligations under the Lease (as now or hereafter amended) to its wholly-owned subsidiary whose
obligations thereunder shall be guaranteed by GKF.
7. Captions. The captions and paragraph headings used herein are for convenience only
and shall not be used in construing or interpreting this Addendum Two.
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8. Full Force and Effect. Except as amended by this Addendum Two, all of the terms
and provisions of the Lease shall remain in full force and effect, including, without limitation,
the charity care provisions set forth in Section 7 of the Lease.
IN WITNESS WHEREOF, the parties have executed this Addendum Two effective as of the date first
written above.
GKF: | JFK: | |||||||||
GK FINANCING, LLC | THE COMMUNITY HOSPITAL GROUP, INC., | |||||||||
dba JFK Medical Center | ||||||||||
By:
|
/s/ Xxxxxx X. Xxxxx, M.D. | By: | /s/ J. Xxxxx Xxxxxxx | |||||||
Xxxxxx X. Xxxxx, M.D. | Name: | J. Xxxxx Xxxxxxx | ||||||||
Policy Committee Member | Title: | EVP/COO
|
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