Document:

Exhibit 10.2

 

LEASE AGREEMENT FOR A GAMMA KNIFE
UNIT

 

THIS LEASE AGREEMENT FOR A GAMMA KNIFE UNIT
dated as of October 29, 1996, (hereinafter, referred to as the “Agreement”) is entered into between GK Financing, LLC,
a California Limited Liability Company, (hereinafter referred to as “GKF”), and METHODIST HEALTHCARE SYSTEM OF SAN
ANTONIO, LTD. dba SOUTHWEST TEXAS METHODIST HOSPITAL, a Texas corporation, (hereinafter referred to as “Hospital'').

 

RECTALS

 

WHEREAS,
Hospital wants to lease a LekselI Stereotactic Gamma Unit distributed by Elekta Instruments, Inc., (hereinafter referred to as
the “Equipment”) and desires from GKF certain marketing and administrative support related to utilization of said equipment,
and

 

WHEREAS,
GKF is willing to lease the Equipment which GKF has acquired from Elekta Instruments, Inc., a Georgia corporation (hereinafter
referred to as “Elekta''), to Hospital, pursuant to the terms and conditions of this Agreement and is willing to provide
to Hospital its marketing and administrative capabilities; and.

 

NOW, therefore,
in consideration of the foregoing premises and the promises contained herein, the parties hereto hereby agree as follows:

 

1.          Execution
of LGK Agreement by and between Hospital and Elekta. GKF hereby leases the Equipment to the Hospital on the terms and conditions
hereinafter set forth. Hospital agrees that simultaneously with the execution of this Agreement it shalI execute that certain LGK
Agreement with Elekta, (hereinafter referred to as the “LGK Agreement”), a copy of which is attached hereto as Exhibit
A and incorporated herein by this reference. Hospital agrees to fulfill all of its obligations under the LGK Agreement and acknowledges
that GKF is a third party beneficiary of the LGK Agreement.

 

2.          Delivery
of the Equipment and Site preparation. GKF shall arrange to have the Equipment delivered to Hospital, at _____________(the
“Site”) in coordination with Elekta. The Equipment shall be the latest Gamma Knife technology available at the date
of this Agreement, including all hardware and software options. GKF shall exert its best faith efforts to expedite the delivery
of the Equipment to a site mutually agreeable to GKF and Hospital in accordance with the terms and conditions of the Purchase Agreement
for the Equipment by and between GKF and Elekta. Notwithstanding the preceding sentence, it is understood and agreed that GKF has
made no representations and warranties to Hospital concerning actual delivery dates or schedules for the Equipment at the Site.
GKF shall coordinate with Hospital the estimated delivery date of equipment.

 

     

     

    

 

Hospital shall provide a safe,
convenient and properly prepared Site, at its own expense, in accordance with all of the Equipment manufacturer's (Elekta's) guidelines,
specifications, technical instruments and Site Planning Criteria (which Site Planning Criteria are attached hereto as Exhibit B
and incorporated herein by this reference), which criteria shall include Elekta's estimated delivery schedule when and as received
by GKF, on Hospital controlled property for the proper performance of Gamma Knife procedures. Site location shall be acceptable
to GKF. Hospital shall prepare at its sole cost and expense the requisite site plans and specifications and shall submit them to
Elekta and GKF for approval before implementation of such plans. Hospital shall apply for, in a timely manner and use its best
efforts to obtain as soon as reasonably possible thereafter a User License from the Nuclear Regulatory Commission and/or appropriate
state agency authorizing it to take possession of the Cobalt Supply and shall obtain such other licenses, permits, approvals, consents
and authorizations, which may be required by local governmental or other regulatory agencies for the Site, its preparation, the
charging of the Equipment with its Cobalt Supply, the conduct of Acceptance tests, and the use of the Equipment all as more fully
set forth in Article 2.1 of the LGK Agreement.

 

3.          Gamma
Knife Service Term. GKF agrees to provide to Hospital, and Hospital agrees to accept and utilize from GKF, the Equipment pursuant
to the terms of this Agreement for a term (the “Gamma Knife Service Term”) commencing on the day (the “Commencement
Date”) that the first procedure using the Equipment is performed on a patient of the Hospital for which payment is due GKF
from the Hospital pursuant to the provisions of Section 6 of this Agreement, and ending on that date which is ten (10) years thereafter,
unless terminated earlier in accordance with the terms of this Agreement. Hospital shall be liable to GKF for the payments referred
to in Paragraph 6 below, as applicable, upon the Commencement Date.

 

4.          Costs
of Site Preparation: Costs of Installation. Hospital's obligations shall include preparation of plans and specifications for
the construction and preparation of the Site in such form as will result in the Site, when constructed in accordance with such
plans and specifications, being in full compliance with Elekta's Site Planning Criteria. Hospital shall at its own expense and
risk, prepare, construct and make ready the Site as necessary, for the installation of the Equipment, including, but not limited
to, providing any temporary and/or permanent shielding for the charging of the equipment and its use, selecting and preparing a
proper foundation for the Equipment and for such shielding and walls, as well as proper alignment of the Site and wiring. Hospital
shall be responsible for the positioning of the Equipment on its foundation at the Site in compliance with Elekta's Site Planning
criteria (attached as Exhibit B).

 

Hospital
shall also at its own expense select, purchase and install all radiation monitoring equipment and devices, safety circuits and
radiation warning signs needed for the Equipment at the Site, according to all applicable federal, state and local laws and regulations.

 

Hospital
warrants that the Site will be prepared in compliance with the Site Planning Criteria.

 

Hospital
shall be liable to GKF for any damage to the Equipment caused by (a) defects in construction of the Site or defects in the positioning
of the Equipment at the Site; (b) defects arising out of materials or parts provided, modified or designed by Hospital with respect
to the Site; or (c) negligent or intentional acts of omission or commission by Hospital or any of its officers, agents, physicians,
and employees in connection with the Site preparation; or (d) operation of the Equipment at the Site.

 

     

     

    

 

Hospital
warrants that it shall utilize its reasonable efforts to fulfill on an timely basis its obligations under this Paragraph 4. Hospital
further warrants that it shall on a regular basis keep GKF informed of Hospital's progress in fulfilling its obligations pursuant
to this Paragraph 4. Should Hospital not have all Site preparations completed by the delivery date (which delivery date the parties
shall negotiate in good faith and document) plus a sixty (60) day grace period such that the Site is acceptable for positioning
and installation of the Equipment, Hospital shall reimburse GKF at an interest rate of Bank of America's prime rate plus 2% on
GKF's Equipment cost until the site is prepared to allow positioning and installation of the Equipment. Should the Equipment not
be delivered by the delivery date plus a sixty (60) day grace period, other than by reasons of force majeure (see Section 27(c))
or Hospital's failure to complete Site preparations necessary for the positioning and installation of the Equipment, GKF shall
reimburse Hospital at an interest rate of bank of America's prime rate plus two percent (2%) on Hospital's costs in constructing
and finishing out the Site until the Equipment is delivered.

 

5.          Marketing
Support GKF will assist and provide financial marketing support to Hospital of at least $250,000 during the first five (5)
years of this project, subject to approval by Hospital.

 

6.          Per
Procedure Payments. As its sole consideration for the lease of the Equipment and the provision of marketing and administrative
support, Hospital shall pay GKF the per procedure payment of eight thousand five hundred dollars ($8,500) for each procedure that
is performed on Hospital's patients using the Equipment during the first five (5) years of this Agreement.

 

The fee
per procedure during Years Six (6) through Ten (10) shall be determined on an annual basis as follows.

 

	Years 6 and 7
	Annual Procedures	 	Fee Per Procedure	 
	1 through 100	 	$	8,200	 
	101 through 125	 	$	7,000	 
	126 through 150	 	$	6,000	 
	Each procedure after 150th	 	$	5,000	 

 

     

     

    

 

 

	Years  8 through 10
	Annual Procedures	 	Fee Per Procedure	 
	1 through 100	 	$	7,000	 
	101 through 125	 	$	6,000	 
	126 through 150	 	$	5,000	 
	Each procedure after 150th	 	$	4,000	 

 

If at any time during the initial
term of this Agreement the total number of procedures equals 1,400, Hospital shall pay GKF a per procedure payment of $4,000 for
each procedure in excess of 1,400 procedures.

 

If no procedures
are performed utilizing the Equipment, no charges shall be incurred by Hospital.

 

A procedure shall be defined
as a single patient treatment session that may include one or more isocenters during that session. Hospital shall be billed on
the fifteenth (15th) and the last day of each month for the actual number of procedures performed during the first and second half
of the month, respectively. Hospital shall pay the procedures invoiced within thirty (30) days after being invoiced. Interest shall
accrue at the rate of 1-1/2% per month on all invoices remaining unpaid after 45 days.

 

Billing
statements, as provided above, will set forth two components of the charges. The equipment-related component will equal sixty-eight
(68%) percent of the total fee per procedure and the administrative component will equal thirty-two (32%) percent of the total
fee per procedure.

 

7.          Use
of the Equipment. The Equipment may be used at Hospital only at the Site identified and shall not be removed therefrom. Hospital
shall not use nor permit the Equipment to be used by any personnel who are not properly trained or in any manner nor for any purpose
for which Elekta or GKF has notified the Hospital the Equipment is not designed or reasonably suitable. Hospital shall not permit
any liens, whether voluntary or involuntary, to attach to the Equipment, without the prior written consent of GKF.

 

8.          Additional
Covenants of Hospital. In addition to the other covenants made by Hospital, Hospital shall at its own cost and expense:

 

(a)          Provide
properly trained professional, technical and support personnel and supplies required for the proper performance of medical procedures
utilizing the Equipment. Hospital will have on staff a minimum of two (2) Gamma Knife trained teams of neurosurgeons, radiation
therapists and physicists. Parties acknowledge that physicians, radiation therapists and physicists are not employees of the Hospital
and are independent contractors.

 

     

     

    

 

(b)          Notwithstanding
any requirements to the contrary or the absence of any requirements in the bylaws, rules and regulations of Hospital's medical
staff, Hospital shall cause all neurosurgeons, radiation therapists and physicists that may use the Equipment as contemplated in
this Agreement to obtain and maintain, at no expense to GKF, throughout the Gamma Knife Service Term, a policy or policies
of insurance insuring their respective risks of professional medical liability incurred in connection with providing professional
services utilizing the Equipment as contemplated in this Agreement, in amounts for each such person which shall be not less than
$500,000 per incident and $1,000,000 in the annual aggregate. Upon expiration of the Gamma Knife Service Term or its earlier termination
in accordance with the terms of this Agreement, if occurrence coverage has not been carried, Hospital shall cause, at no cost to
GKF, professional liability tail coverage to be obtained and maintained with respect to each such person with the same limits as
in effect on the last day of the term of this Agreement, such tail coverage policy or policies to cover such person's risks of
professional medical liability arising during the Gamma Knife Service Term. Also, upon the expiration or termination of any such
policy prior to the expiration of the Gamma Knife Service Term or its earlier termination, Hospital shall cause, at no cost to
GKF, a substitute policy or tail coverage to be obtained and maintained with the same limits as in effect on the date of expiration
or termination, such substitute policy or tail coverage to cover any such person's risk of professional medical liability arising
during the Gamma Knife Service Term. Prior to the commencement of the Gamma Knife Service Term or before a neurosurgeon, radiation
therapists or physicist first uses the Equipment, and annually, thereafter (i.e., upon policy renewal), Hospital shall provide
GKF (or cause neurosurgeons, radiation therapists and physicists to provide GKF) with certificates of insurance or other written
evidence with respect to each such policy. Hospital shall also cause all such neurosurgeons, radiation therapists and physicists
to provide GKF with written notice of any change to such coverage throughout the Gamma Knife Service Term.

 

(c)          Fully
comply with all of its obligations under the LGK Agreement.

 

(d)          Indemnify
GKF as herein provided:

 

(i)          Hospital
shall fully indemnify, hold harmless and/or reimburse GKF (and its members and their respective officers, directors, agents, employees
and affiliates) for any loss, liability, damage, penalty, action, claim, cost or expense (including reasonable attorneys' fees)
(hereinafter collectively referred to as “damages”) which GKF may suffer or incur which are solely caused by Hospital's
Site preparation and the Equipment's positioning, if the Site preparation or the Equipment's positioning was not done in compliance
with Elekta's Site Planning Criteria. Except as relates to Site plans, specifications and positioning plans reviewed and approved
by GKF and/or Elekta, or construction of other Site preparation done in compliance with Elekta's Site Planning Criteria, Hospital
shall be liable for any damages to the Equipment caused by (a) defects in construction of the Site or defects in positioning of
the Equipment at the Site: (b) defects arising out of materials or parts provided, modified or designed by Hospital with respect
to the Site: (c) negligent or intentional acts of omission or commission by Hospital or any of its officers, agents or employees
in connection with the Site preparation; or (d) negligent operation of the Equipment at the Site. However, neither the review and
approval of Site plans, specifications and/or positioning plans by GKF and/or Elekta, nor the construction of any other Site preparation,
shall relieve hospital for liability for damages to the Equipment caused by the failure to comply with applicable federal, state
or local laws or regulations, including building codes, or those portions of the Site Planning Criteria relating to the load bearing
capacity of the floor of the treatment room and to radiation protection.

 

     

     

    

 

(ii)         Hospital
shall fully indemnify, hold harmless and/or reimburse (including reasonable attorneys fees) GKF (and its members and their respective
officers, directors, agents employees and affiliates), on a prompt basis for any and all damages to the Equipment (including any
violation by Hospital, its agents, officers, employees, successors and assigns, or by any physician-users of the Equipment, of
the Services Agreement described in Section 15 hereof) to the extent such damages are caused by the negligent or wrongful acts
or omissions of Hospital, its agents, officers, employees, successor or assigns or by any physician-users of the Equipment. In
the event the Equipment is destroyed or rendered unusable, this indemnification shall extend up to the full replacement value of
the Equipment at the time of its destruction less salvage value, if any.

 

(iii)        Hospital
shall fully indemnify, hold harmless and/or reimburse GKF (and its members and their respective officers, directors, agents, employees
and affiliates) for any damages which GKF may suffer or incur as a result of Hospital's breach or alleged breach of this Lease
Agreement.

 

(iv)        Hospital
shall fully indemnify, hold harmless and/or reimburse GKF (and its members and their respective officers, directors, agents, employees
and affiliates) for any damages, claims, judgments and liabilities by or to third parties (plus litigation costs incurred and reasonable
attorneys fees) which GKF may suffer or incur resulting from injury to or death of any person or physical loss or damage to property
arising out of the negligent operation or negligent medical use of the Equipment by or for Hospital (but which is not attributable
to defective materials, workmanship or manufacture of the Equipment), the defective maintenance of the Equipment by or for Hospital
(but only to the extent not performed by or on behalf of Elekta), the failure of the Site to comply with the Site Planning Criteria,
or the training referred to in Section 3.2 of the LGK Agreement. It is agreed that non-employee physician/users of the Equipment
are independent of the Hospital and are not acting by or for the Hospital.

 

(e)          Provide
reasonable and customary marketing materials (i.e. brochures, announcements, etc.) and marketing support from an administrative
and clinical (i.e. seminars by neurosurgeons and radiation therapists to referring physicians, etc.) standpoint for this service.

 

(f)          Keep
and maintain the Equipment and Site fully protected, secure and free from unauthorized access or use by any person.

 

9.          Additional
Covenants, Representations and Warranties of GKF. In addition to the other covenants, representations and warranties, made
by GKF in this Agreement:

 

(a)          GKF
represents and warrants that GKF has full power and authority to enter into this Agreement, and that this Agreement does not and
will not violate any agreement, contract or instrument binding upon GKF.

 

(b)          GKF
represents and warrants to Hospital that, upon delivery of the Equipment to Hospital, GKF shall use its reasonable commercial efforts
to require that Elekta meets its contractual obligations to GKF and in putting the Equipment, as required by the LGK Purchase Agreement,
into good, safe and serviceable condition and fit for its intended use in accordance with the manufacturer's specifications, guidelines
and field modification instructions.

 

     

     

    

 

(c)          GKF
represents and warrants that throughout the term of this Agreement, Hospital shall enjoy the use of the Equipment, free of the
rights of any other persons except for those rights reserved by GKF or the right of access granted to Elekta under the LGK Agreement
or under the LGK Purchase Agreement with GKF.

 

(d)          During
the entire term of this Agreement and subsequent extension thereof, GKF shall maintain in full force and effect: (i) the Service
Agreement referenced in Paragraph 15 hereof. GKF represents and warrants that during the entire term of this agreement and any
subsequent extensions thereof, that it will fully pursue any and all remedies it may have against Elekta under the Service Agreement
to insure that the Equipment will be in conformity with Elekta's warranties so that it is free from defects in design, materials,
and workmanship which result in noncompliance with the specifications and/or Elekta's warranties to GKF. ln no event, however,
shall the warranty obligations of GKF to Hospital with respect to the Equipment be greater or more extensive than Elekta's warranty
obligations to GKF with respect to the Equipment. Hospital and GKF acknowledge that Exhibit D of that certain LGK Purchase Agreement,
dated as of October 11, 1995, by and between Elekta and GKF (the “LGK Purchase Agreement”) sets forth the warranties
with respect to the Equipment granted by Elekta to GKF, which warranties are identical in form and content to the warranties provided
by Elekta to Hospital in Exhibit D of the LGK Agreement. Hospital is an intended third-party beneficiary of the warranties granted
by Elekta to GKF in Exhibit D of the LGK Purchase Agreement and Hospital shall be entitled to enforce the obligations of Elekta
thereunder directly.

 

10.         Ownership/Title.
It is expressly understood that Hospital shall acquire no right, title or interest in or to the Equipment, other than the leasehold
interests conveyed hereunder, including, the right to the possession and use of the same in accordance with the terms of this Agreement,
except as outlined under Paragraph 17. Hospital shall have no interest in the Equipment other than the rights acquired as a lessee
hereunder and the Equipment shall remain the property of GKF regardless of the manner in which it may be installed or attached
at the Site. Hospital shall, at GKF's request, affix to the Equipment tags, decals, or plates furnished by GKF, indicating GKF's
ownership of the Equipment.

 

GKF may
at its sole discretion finance the Equipment. Financing may be in the form of an installment loan or a financing lease or other
commercially available debt instrument. Should GKF finance the Equipment through an installment loan, GKF shall be required to
provide the Equipment as collateral against the loan. Should GKF finance the Equipment through a financing lease title shall vest
with the lessor until GKF exercises its buy-out option. In addition, should GKF finance the equipment, said Agreement may be used
as collateral against the loan. Hospital's right to possess and use the Equipment hereunder shall be subject to the interest of
GKF's financing entities, if any. GKF shall instruct any such financing entities to notify (the “Default Notice”) GKF
and Hospital in writing within ten (10) business days after any payment defaults by GKF to any financing entity with respect to
the Equipment at the Site (each, a “Payment default”). If GKF has not provided Hospital with reasonably satisfactory
evidence that it has cured any such Payment Default within twenty (20) business days after Hospital's receipt of the Default Notice,
Hospital shall have the right to cure any such Payment Default by paying to any such financing entity, as appropriate, the amount
of the Payment Default and providing GKF with reasonably satisfactory written evidence of any such payment. Any amounts paid by
Hospital to any such financing entity pursuant to the provisions of this Section 10 shall be offset against amount due GKF from
the Hospital pursuant to Paragraph 6 of this Agreement. Except as otherwise specifically provided in this Paragraph 10, Hospital
shall have no rights of set off against amounts due GKF form the Hospital pursuant to this agreement or otherwise.

 

     

     

    

 

11.         Cost
of Use of the Equipment. Except as is otherwise provided herein, Hospital shall bear the entire cost of using the Equipment
during the Term of this Agreement. This shall include, but not be limited to, providing trained professionals, technical and support
personnel and supplies to properly operate the Equipment.

 

12.         Taxes.
GKF shall pay any personal property and sales and use taxes levied against the Equipment and any other taxes or governmental fees
or assessments, however denoted, whether of the federal government, any state government or any local government, levied or based
on this Agreement or the use of the Equipment except for taxes, if any, assessed on the basis of net income, gross income or gross
receipts of Hospital.

 

13.         Maintenance
and Inspections. GKF agrees to exercise due and proper care in the maintenance of the Equipment and to keep the Equipment in
a good state of repair, reasonable wear and tear excepted.

 

GKF (and
Elekta) shall have the right of access to the Equipment for the purpose of inspecting same at all reasonable times and upon reasonable
notice and with a minimum of interference to Hospital's operations. In the event the Equipment is improperly used by Hospital or
its employees, agents, officers, physicians, or any other non-GKF or non-Elekta individual GKF may service or repair the same as
needed and such expense shall be paid by Hospital, unless the repair is covered by the Service Agreement described in Paragraph
15 hereof.

 

Any work
so performed by or in the service or maintenance of the Equipment as a result of Hospital's failure or neglect to do so shall not
deprive GKF of any of its rights, remedies or actions against Hospital for damages caused by such failure or neglect.

 

14.         Equipment
Modifications/Additions/Upgrades. The parties agree that the necessity and financial responsibility for future modifications/additions/upgrades
to the Equipment, including the reloading of the Cobalt-60 source, shall be discussed and mutually agreed to by GKF and Hospital.

 

15.         Service
Agreement. GKF warrants that it shall simultaneously with the execution of this Agreement enter into a Service Agreement with
Elekta. Service Agreement shall be at GKF's sole expense.

 

16.         Intentionally
omitted

  

     

     

    

 

17.         Options

 

(a)          Hospital
shall have the option, exercisable as set forth below, to:

 

(i)          Renegotiate
this Agreement on terms mutually agreeable to GKF for a specified renewal term taking into account the first ten (10) years of
activity of the Equipment at the Site. Pursuant to Paragraph 17(a)(ii), if terms and conditions of Agreement extension are not
executed by both parties by the end of the 114th month, this Agreement shall terminate. Both parties shall negotiate in good faith
on the terms and conditions of an extension of this Agreement.

 

(ii)         Terminate
this Agreement. lf Hospital fails to renew the Equipment Term at the end of the initial term, GKF shall, at its sole expense remove
the Gamma Knife within a reasonable period of time after the expiration of the ten (10) year initial Term. Hospital shall cooperate
in good faith in such removal.

 

(iii)        Purchase
the Equipment from GKF at a price equal to $1.00 if at least one thousand four hundred (1,400) paid procedures have been
performed during the ten (10) year initial Equipment Term. Hospital shall also be eligible to purchase the Equipment on an
agreed upon formula, if Hospital performs at least one thousand three hundred (1,300) but less than one thousand four hundred
(1,400) procedures during the ten (10) year initial Equipment Term. The formula will stipulate that Hospital has the option
to purchase the Equipment for a price equal to the difference between 1,400 and the actual number of paid procedures, if the
number of paid procedures is greater than 1,300 procedures, multiplied by $4,400 (i.e. 1,400 procedures minus 1,380 paid
procedures times $4,400 equals $88,000.) This purchase price is contingent upon Hospital paying for the cost to reload the
Cobalt on this Equipment during approximately the eighth year of the original Equipment Term of this Agreement, if required.
The Equipment Term shall be extended by the number of business days the Equipment is not available for clinical use during
Cobalt reloading.

 

(iv)        Purchase
the Equipment from GKF at a price equal to 80% of its Fair Market Value. Should Hospital pay for the cost to reload the Cobalt
on this Equipment during the original Equipment Term of this Agreement, increase in Equipment value attributed to Cobalt reloading
will be excluded from determining the Equipment's Fair Market Value.

 

Hospital
shall exercise one (1) of the four (4) options referred to above, by mailing an irrevocable written notice thereof to GKF at Four
Embarcadero Center, Suite 3620, San Francisco, California, 94111, by registered mail, postmarked on or before the end of the ninth
(9th) year of the ten (10) year initial Equipment Term of this Agreement. Any such notice shall be sufficient if it states in substance
that Hospital elects to exercise its option and states which of the four (4) options referred to above Hospital is exercising.

 

18.         No
Warranties by GKF. Hospital warrants that as of the Commencement Date, it shall have (a) thoroughly inspected the Equipment;
(b) determined for itself that all items of the Equipment are of a size, design, capacity and manufacture selected by it; and (c)
satisfied itself that to the best of its knowledge the Equipment is suitable for Hospital's stated purposes. GKF SUPPLIES THE EQUIPMENT
“AS IS” AND NOT BEING THE MANUFACTURER OF THE EQUIPMENT OR THE MANUFACTURER'S AGENT, MAKES NO WARRANTY OR REPRESENTATION,
EITHER EXPRESSED OR IMPLIED, AS TO THE EQUIPMENT'S MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, DESIGN, CONDITION, DURABILITY,
CAPACITY, MATERIAL OR WORKMANSHIP OR AS TO PATENT INFRINGEMENT OR THE LIKE, it being agreed that all such risks as between GKF
and Hospital, shall be borne by Hospital. Hospital agrees to look solely to the manufacturer (Elekta) or to suppliers of the Equipment
(and its software) for any and all warranty claims. GKF will use reasonable commercial efforts to enforce any and all warranties
made by Elekta on behalf of Hospital during the ten (10) year initial Equipment Term and any extensions hereof. Hospital agrees
that GKF shall not be responsible for the delivery, installation, or operation of the Equipment or for any delay or inadequacy
of any or all of the foregoing. GKF shall not be responsible for any direct or indirect consequential loss or damage resulting
from the installation, operation or use of the Equipment or otherwise. Hospital expressly waives any right or claim to hold GKF
liable hereunder for any claims, demands and liabilities arising out of or in connection with the design, manufacture, possession
or operation of the Equipment.

 

     

     

    

 

19.         Events
of Default and Remedies. The occurrence of any one of the following shall constitute an Event of Default hereunder:

 

(a)          Hospital
fails to pay any installment of semi-monthly procedure payments when due when such default continues for a period of thirty (30)
days after notice thereof from GKF or its assignee is given to Hospital.

 

(b)          Hospital
attempts to remove, sell, transfer, encumber, sublet or part with possession of the Equipment or any items thereof, except as expressly
permitted herein;

 

(c)          Hospital
shall fail to observe or perform any of the other obligations required to be observed or performed by Hospital hereunder and such
failure shall continue for twenty (20) days after written notice thereof to Hospital by GKF, unless Hospital has cured or is attempting
to cure such failure during such period. So long as Hospital is diligently attempting to cure its failure to observe or perform
any of its obligations, in good faith, such failure shall not constitute an Event of Default hereunder, unless such failure results
in material damage or loss to GKF.

 

(d)          Hospital
ceases doing business as a going concern, makes an assignment for the benefit of creditors, admits in writing its inability to
pay its debts as they become due, files a voluntary petition in bankruptcy, is adjudicated a bankrupt or an insolvent, files a
petition seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar arrangement
under any present or future statute, law or regulation or files an answer admitting the material allegations of a petition filed
against it in any such proceeding, consents to or acquiesces in the appointment of a trustee, receiver, or liquidator of it or
of all or any substantial part of its assets or properties, or it or its shareholders or directors shalI take any action looking
to its dissolution or liquidation.

 

(e)          Within
sixty (60) days after the commencement of any proceedings against Hospital seeking reorganization, arrangement, readjustment, liquidation,
dissolution or similar relief under any present or future statute, law or regulation, such proceedings shall not have been dismissed,
or if within thirty (30) days after the appointment without Hospital's consent or acquiescence of any trustee, receiver or liquidator
of it or of all or any substantial part of its assets and properties, such appointment shall not be vacated.

 

     

     

    

 

Upon the
occurrence of an Event of Default, GKF may at its option do any or all of the following: (i) by notice to Hospital, terminate this
Agreement as to the Equipment in default, wherever situated, and for such purposes, enter upon the Site without liability for so
doing or GKF may cause Hospital and Hospital hereby agrees to return the Equipment to GKF at Hospital's sole cost and expense;
(ii) recover from, as liquidated damages for the loss of the bargain and not as a penalty, an amount equal to the present value
of the unpaid estimated future lease payments by Hospital to GKF through the end of the Equipment Term discounted at the rate of
nine percent (9%), which payment shall become immediately due and payable. Unpaid estimated future lease payments shall be based
on the prior 12 months lease payments and incorporating an annual five (5%) percent increase; (iii) sell, dispose of, hold, use
or lease the Equipment in default, as GKF in its sole discretion may determine (and GKF shall not be obligated to give preference
to the sale, lease or other disposition of the Equipment over the sale, lease or other disposition of similar Equipment owned or
leased by GKF). In any event, Hospital shall, without further demand, pay to GKF an amount equal to all sums due and payable for
all periods up to and including the date on which GKF had declared this Agreement to be in default.

 

In the
event that Hospital shall have paid to GKF the liquidated damages referred to in (ii) above, GKF hereby agrees to pay to Hospital
promptly after receipt thereof, all rentals or proceeds received from the reletting or sale of the Equipment during the balance
of the ten (10) year initial Equipment Term (after deduction of all expenses incurred by GKF (including costs of unloading, shipping,
installing, and reloading the equipment); said amount never to exceed the amount of the liquidated damages paid by Hospital). Hospital
agrees that GKF shall have no obligation to sell the Equipment. Hospital shall in any event remain fully liable for reasonable
damages as provided by law for all costs and expenses incurred by GKF on account of such default, including but not limited to,
all court costs and reasonable attorneys' fees. Hospital hereby agrees that, in any event, it shall be liable for any deficiency
after any sale, lease or other disposition of the Equipment by GKF. The rights afforded GKF hereunder shall not be deemed to be
exclusive, but shall be in addition to any other rights or remedies provided by law.

 

20.         IInsurance.

 

(a) During
the ten (10) year initial Equipment Term of this Agreement (and any successive terms) GKF shall, at its own cost and expense, keep
in effect an all risk and hazard insurance policy covering the Equipment. The all risk and hazard insurance policy shall be for
an amount not less than the replacement cost of the Equipment. Hospital shall be named as an additional insured under the all risk
and hazard insurance policy maintained by GKF to the extend to its leasehold interest. Evidence of such insurance coverage shall
be furnished by GKF to Hospital upon written request. During the ten (10) year initial Equipment Term of this Agreement, Hospital
shall, at its own cost and expense keep in effect public liability and professional liability insurance policies concerning the
possession and operation-of the Equipment by Hospital. Said policies shall be in the amounts of not less than $1,000,000 per occurrence
and $5,000,000 in aggregate per year. GKF and its members, successors and assigns, shall be named as additional insureds under
the liability and professional liability policies maintained by Hospital. Evidence of such insurance coverages shall be furnished
by Hospital to GKF upon written request, by no later than the Commencement Date.

 

     

     

    

 

(b)          If
the Equipment is rendered unusable as a result of any physical damage to, or destruction of, the Equipment, Hospital shall give
to GKF immediate notice. GKF shall determine, within thirty (30) days after the date of occurrence of such damage or destruction,
whether the Equipment can be repaired. In the event GKF determines that the Equipment cannot be repaired, GKF at its sole cost
and expense shall promptly replace the Equipment. This Agreement shall continue in full force and effect as though such damage
or destruction had not occurred. In the event GKF determines that the Equipment can be repaired, GKF shall cause the Equipment
to be promptly repaired.

 

21.         Notices.
Any notices required under this Agreement shall be sent in writing and shall be deemed to have been duly given if delivered by
hand or mailed by certified or registered mail to the following addresses:

 

		To GKF:	Craig K. Tagawa, C.E.0.

Four Embarcadero Center, Suite 3620 

San Francisco,
CA 94111

 

		To Hospital:	James C. Scoggin, Jr. , CEO

Southwest Texas Methodist Hospital

7700 Floyd Curl Drive 

San
Antonio, TX 78229

  

Or to such
other addresses as either party may specify for the reception of notice from time to time in writing to the other party. Any such
notice shall be effective only when actually received by the party to whom addressed.

 

22.         lntegration/Supersedure.
This Agreement together with all exhibits and addenda attached hereto contains the full and entire Agreement between the parties
hereto, and no oral or written understanding is of any force or effect whatsoever unless expressly contained in a writing executed
subsequent to the date of this Agreement.

 

23.         Waivers.
To the extent that GKF fails or chooses not to pursue any of its remedies under this Agreement or pursuant to applicable law, such
shall not prejudice GKF's rights to pursue any of those remedies at any future time and shall not constitute a waiver of GKF's
rights. To the extent that Hospital fails or chooses not to pursue any of its remedies under this Agreement or pursuant to applicable
law, such shall not prejudice Hospital1s rights to pursue any of those remedies at any future time and shall not constitute a waiver
of Hospital's rights.

 

24.         Assignments.
This Agreement is binding upon and shalI inure to the benefit of the permitted successors or assigns of the respective parties
hereto, except that Hospital may not assign its rights or obligations under this Agreement without the express written consent
of GKF (which consent shall not be unreasonably withheld). Hospital shall not assign or sublease the Equipment or its rights hereunder
without the prior written consent of GKF; which consent shall not be unreasonably withheld. No permitted assignment or sublease
shall relieve Hospital of any of its obligations hereunder. For purposes of this Section 24, a reorganization, recapitalization,
merger, or other business combination or restructuring of Hospital shall not be considered an assignment of this Agreement, so
long as Methodist Healthcare System of San Antonio, Ltd., retains at least a fifty percent (50%) direct or indirect ownership interest
in the Hospital.

 

     

     

    

 

25.         Amendments.
This Agreement shall not be amended or altered in any manner unless such amendment or alteration is in a writing signed by both
parties.

 

26.         Record-Keeping
Requirements. To the extent required by the regulations promulgated by the Health Care Financing Administration pursuant to
Section 952 of the Omnibus Reconciliation Act of 1980, GKF shall:

 

(a)          Until
the expiration of four (4) years following the furnishing of services pursuant to this Agreement, GKF agrees to make available
upon written request of the Secretary of Health and Human Services or the U.S. Comptroller General or any of their duly authorized
representatives, this Agreement, any books, documents and records necessary to verify the nature and extent of costs incurred by
Hospital by reason of the activities of GKF under this Agreement; and

 

(b)          If
GKF elects to delegate any of its duties under this Agreement (which have a cost or value of Ten Thousand Dollars ($10,000.00)
or more over a twelve (12) month period) to a related organization, only through a subcontractor which provides that, until the
expiration of four (4) years following the furnishing of services under such subcontract, the related organization shall make available,
on request of the Secretary of Health and Human Services or the U.S. Comptroller General or any of their authorized representatives,
the subcontract, and books, documents and records of the nature and extent of costs incurred by Hospital by reason of activities
of such related organization under such subcontract. No delegation by GKF of its duties hereunder shall relieve GKF from liability
hereunder.

 

27.         Miscellaneous
Provisions.

 

(a)          The
invalidity or unenforceability of any portion or provision of this Agreement shall not effect the validity or enforceability of
any other portion, nor shall either party's implied or express consent to the breach or waiver of any provision of this Agreement
constitute a waiver of such provision as to any subsequent breach.

 

(b)          In
the event of any claim or controversy arising hereunder, the prevailing party in such claim or controversy shall be entitled to
a reasonable attorneys' fee in addition to whatever other relief said party would be otherwise entitled.

 

(c)          Force
Majeure. Failure to perform any obligation hereunder (except for the payment of money) by either party will be excused in the
event of any delay or inability to perform its duties under this Agreement directly or indirectly caused by conditions beyond its
reasonable control including without limitation, fires, floods, earthquakes, snow, ice, disasters, Acts of God, accidents, riots,
wars, operation of law, strikes, governmental action or regulations, shortages of labor, fuel, power, materials, manufacturer delays
or transportation problems.

 

(d)          Governing
Law. The Agreement will be governed by Texas law.

 

     

     

    

 

(e)          Dispute
Resolution. Should a dispute arise out of this contract, the parties to the dispute shall first attempt to resolve it through
direct discussions in the spirit of mutual cooperation. If the parties' attempts to resolve their disagreements through negotiation
fail, the dispute shall be mediated by a mutually acceptable third-party to be chosen by the disputing parties within thirty (30)
days after written notice by one of them demanding mediation. The disputing parties shall share the cost of the mediation equally.
By mutual agreement the parties may postpone mediation until each has completed some specified but limited discovery about the
dispute. By mutual agreement the parties may use a nonbinding form of dispute resolution other than mediation. Any nonbinding dispute
resolution process conducted under the terms of this section shall be confidential within the meaning of Tex. Civ. Prac. and Rem.
Code sec. 154.053 and 154.073. ln the event that neither a negotiated or mediated resolution is obtained within the time periods
provided by this section, the parties may pursue any available legal or equitable remedy.

 

IN WITNESS WHEREOF, the parties
have signed this Agreement on the day and year first above written.

 

	SOUTHWEST TEXAS 	GK FINANCING, LLC
	METHODIST HOSPITAL	 
	By: /s/ James C. Scoggin, Jr.	By: /s/ Craig K. Tagawa
	James C. Scoggin, Jr.	Craig K. Tagawa
	Chief Executive Officer	Chief Executive OfficerExhibit 10.2a

 

ADDENDUM TO

 

LEASE AGREEMENT FOR A GAMMA KNIFE UNIT

 

1.                 
GKF shall participate jointly with Hospital in the design, development and construction contract solicitation required in connection
with the preparation of the Site for the Equipment. In this regard:

 

(a)              
GKF and Hospital have identified and approved Garza, Bomberger and Associates as the architectural firm to be engaged by Hospital
to develop the design, layout, and plans and specifications for the Site. GKF shall assist Hospital with, and the Hospital shall
regularly consult with GKF with regard to, the design or layout of the Site and all matters related to the preparation of the plans
and specifications.

 

(b)              
GKF also shall participate with Hospital in the identification and review of possible construction, engineering and/or design firms
(general contractors and/or any subcontractors) to be engaged by Hospital to construct the Site. GKF shall have the right to interview
all construction, engineering and/or design firms proposed by Hospital or GKF for the project. All bids to perform the construction,
engineering and/or design work for the Site shall be submitted to GKF for review prior to Hospital’s selection thereof. The
construction, engineering and/or design firm(s) finally selected by Hospital to perform the work and its bid shall be subject to
the written approval of GKF, which approval shall not be unreasonably withheld, conditioned or delayed.

 

2.                 
As soon as reasonably possible after Hospital enters into the principal contracts for the design, preparation and construction
of the Site (i.e., design/layout, architectural engineering and general construction), Hospital shall determine in writing the
aggregate costs and expenses previously incurred and shall estimate the aggregate costs and expenses to be subsequently incurred
by Hospital to design, plan, prepare, construct and complete the Site for the Equipment (the “Site Preparation Costs”)
based upon the amounts reflected in said contracts. A copy of the written determination shall be delivered by Hospital to GKF.
If the aggregated Site Preparation Costs set forth in the written determination are Nine Hundred Fifty Thousand ($950,000.00) or
less, Hospital shall be responsible for the payment of all Site Preparation Costs. If the aggregate Site Preparation Costs set
forth in the written determination are more than Nine Hundred Fifty Thousand Dollars ($950,000.00), GKF shall reimburse Hospital
in the manner set forth in Section 3 below for the amount of Site Preparation Costs set forth in the written documentation in excess
of Nine Hundred Fifty Thousand Dollars ($950,000.00) (the “Excess Site Preparation Amount”).

 

     

     

    

 

3.                 
If GKF is required to reimburse Hospital the Excess Site Preparation Costs:

 

(a)              
Concurrent with the payment of any invoices or periodic installments for Site Preparation Costs, Hospital shall deliver to GKF
a copy of all invoices or statements, a copy of all evidences of payment (e.g., copies of checks), an accounting of the aggregated
Site Preparation Costs, and a comparison of the estimated Site Preparation Costs (as set forth in the written determination) to
the actual Site Preparation Costs paid by Hospital. The inadvertent failure of Hospital to provide the foregoing documentation
will not affect Hospital’s right to reimbursement hereunder, so long as such documentation is provided to GKF promptly upon
request by GKF. When the aggregate Site Preparation Costs paid by Hospital, exceed Nine Hundred Fifty Thousand Dollars ($950,000.00),
Hospital shall itemize and request in writing that GKF reimburse Hospital for such excess costs. GKF shall reimburse the Hospital
for the excess costs up to the Excess Site Preparation Amount not more than (30) days after the written request for reimbursement
and other items described herein are delivered by Hospital to GKF.

 

(b)              
Modifications or additions to the Site Preparation Costs, including change orders, shall be subject to written approval of GKF,
which approval shall not be unreasonably withheld, conditioned or delayed.

 

(c)              
Hospital shall regularly report to GKF on the status of the preparation and construction of the Site. Upon reasonable advance request
by GKF, GKF shall have the right to visit and inspect the Site to review the progress of construction.

 

4.                 
Except as otherwise set forth in this Addendum, all of the provisions of the Lease Agreement remain in full force and effect.

  

	
        GK Financing, LLC,

        a California limited liability company
	
        Methodist Healthcare System of San

        Antonio, LTD., dba Southwest Texas

        Methodist Hospital, a Texas Corporation

         

	
        By: /s/ Craig K. Tagawa

        Craig K. Tagawa
	
        By: /s/ James C. Scoggin, Jr.

        James C. Scoggin, Jr.

	Chief Executive Officer	Chief Executive Officer
	Dated: October 31, 1996	Dated: October 31, 1996

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