Exhibit 10.19b
ASSIGNMENT, ASSUMPTION AND AMENDMENT OF
LEASE AGREEMENT FOR A GAMMA KNIFE UNIT
This ASSIGNMENT, ASSUMPTION AND
AMENDMENT OF LEASE AGREEMENT FOR A GAMMA KNIFE UNIT (this
“Amendment”) is made effective as of the close of
business on June 30, 2006 (the “Amendment Effective
Date”) and is entered into by and among Yale-New Haven
Ambulatory Services Corporation , a Connecticut corporation
(“ASC”), Yale-New Haven Hospital, Inc. a/k/a
Yale-New Haven Hospital, a Connecticut corporation
(“YNHH”) and GK Financing, LLC, a California
limited liability company (“GKF”).
RECITALS
WHEREAS, on April 10, 1997 GKF
and ASC entered into a Lease Agreement For A Gamma Knife Unit (the
“Lease”), which Lease was amended pursuant to an
Addendum dated as of October 25, 2005 (the
“Addendum”) (the Lease, as amended by the Addendum, is
hereinafter referred to as the “Amended Lease”);
WHEREAS, YNHH is an affiliate of ASC,
and ASC desires to transfer and assign its interest in the Amended
Lease (as further amended hereby) to YNHH; and
WHEREAS, ASC, YNHH and GKF desire to
further amend the Amended Lease with respect to reimbursement paid
to GKF and certain other provisions and to effect such transfer and
assignment.
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:
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1. |
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Definitions . All capitalized terms used but not defined
herein have the meanings given thereto in the Amended Lease. The
lease arrangement as amended and assigned to YNHH hereby is
referred to as the “Assigned Lease.” |
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2. |
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Additional Amendments to the Amended Lease. GKF and ASC
agree to amend the Amended Lease as follows: |
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a. |
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As of the Amendment Effective Date, Section 7 of the Lease
(captioned “Reimbursement to GKF”) and Section 4
of the Addendum (captioned “Lease Payment to GKF”) are
deleted and of no further force or effect. |
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b. |
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From and after the Amendment Effective Date, YNHH shall pay to
GKF the monthly “Lease Payments” (as defined below),
plus , if applicable, the “Additional Payments”
(as defined below). The Lease Payments shall be payable within
thirty (30) days after the conclusion of each calendar month
in which the applicable procedures were performed. In addition to
the Lease Payments and the Additional Payments, YNHH shall pay to
GKF quarterly payments in an amount equal to one quarter of
YNHH’s reasonable projection of the total * due on the
Equipment and paid by GKF for each “Contract Year” (as
defined below). Within thirty (30) days after the end of each
Contract Year, the sum of such quarterly projected payments made by
YNHH shall be reconciled against the actual amounts of such
expenses, and YNHH or GKF shall, within thirty (30) days
thereafter, make a “true up” payment to the other as
appropriate. Through the term of the Assigned Lease, and thereafter
until final settlement of all amounts owed to or claimed by either
party under the Assigned Lease, each party shall have the right at
reasonable times and upon reasonable advance notice to inspect,
audit and copy the other party’s books and |
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records which relate to scheduling and billing of, and
reimbursement for, Gamma Knife procedures, the Lease Payments and
Additional Payments, and the * associated with the Equipment.
Notwithstanding the foregoing, the compensation payable to GKF
pertaining to procedures performed prior to the Amendment Effective
Date shall be calculated and paid by ASC in accordance with
Section 4 of the Amended Lease. |
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(A) |
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“Lease Payment” shall mean and be equal to *
multiplied by each and every procedure performed after the
Amendment Effective Date during the applicable calendar month using
the Equipment, irrespective of (1) whether the procedure is
performed by YNHH, its representatives or affiliates, or any other
person or entity; or (2) the actual amounts billed or
collected, if any, pertaining to such procedures. |
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(B) |
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“Affiliate” shall mean as to any YNHH and/or ASC,
(1) any Person which, directly or indirectly, is in control
of, is controlled by, or is under common control with such YNHH
and/or ASC, or (2) any Person who is a director or officer
(aa) of YNHH and/or ASC, (bb) of any subsidiary of YNHH
and/or ASC, or (cc) of any Person described in clause
(1) above. For purposes of this definition, control of a
Person shall mean the power, direct or indirect, to direct or cause
the direction of the management and policies of such Person whether
through ownership of voting securities, by contract or
otherwise. |
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Without limiting the generality of the foregoing,
“Affiliate” shall expressly include the Yale-New Haven
Delivery Network and all of its constituent entities, including,
without limitation, Yale-New Haven Hospital, Yale-New Haven
Children’s Hospital, Yale-New Haven Psychiatric Hospital,
Yale-New Haven Ambulatory Services Corp (Temple Medical Center),
Yale-New Haven Independent Practice Association (IPA), Yale-New
Haven Physician Hospital Organization (PHO), and Medical Center
Pharmacy. |
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Notwithstanding the foregoing, “Affiliate” shall
expressly exclude (aaa) the Bridgeport Delivery Network,
comprised of Bridgeport Hospital, Ahlbin Rehabilitation Centers,
United Visiting Nurse Association and Bridgeport Hospital
Foundation, and (bbb) the Greenwich Delivery Network comprised
of Greenwich Hospital, Greenwich Physicians Association, Inc., and
Greenwich Hospital Hospice services. |
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(C) |
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“Contract Year” shall mean each successive twelve
(12) month period |
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