Document:

exv10w53

 

Exhibit 10.53

ADDENDUM TWO

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 17, 2007, and is entered into between GK FINANCING, LLC, a California
limited liability company (“GKF”), and SUNRISE HOSPITAL MEDICAL CENTER, LLC, d/b/a as Sunrise
Hospital Medical Center, [a Nevada corporation] (“Medical Center”), with reference to the following
recitals:

Recitals:

     A. On January 8, 2001, GKF and Medical Center executed a Lease Agreement for a Gamma Knife
Unit, which Lease Agreement was amended by a certain Addendum dated June 3, 1999 (such Lease
Agreement, as amended by such Addendum, is referred to herein as the “Lease”);

     B. Section 8 of the Lease obligates Medical Center to provide properly trained professional,
technical and support personnel (including, without limitation, physicists) for the proper
performance of Gamma Knife procedures utilizing the Equipment.

     C. Medical Center has requested GKF to provide the services of a medical radiation physicist,
and GKF is willing to provide such personnel on the terms and conditions 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. Provision of a Medical Radiation Physicist.

          a. For so long as GKF is under contract with a medical radiation physicist (a “Physicist”) to
provide the services set forth in Exhibit A (Specification) attached hereto (the “Services”), and
said physicist is available to provide the services, GKF shall make available such Physicist to
Medical Center to provide the services. The Services shall be performed at the Site. Medical
Center and the physicians performing the Gamma Knife radiosurgery procedure shall have sole
responsibility to supervise and direct the Physicist.

          b. Physicist shall only perform Services as, when and if requested by Medical Center, which
request shall be made telephonically or in writing not less than ten (10) days in advance of the
date the Services are requested, unless days of advance notice is mutually agreed to by both
parties.

- 1 -

 

          c. Medical Center shall have sole responsibility to credential the Physicist to provide the
Services at the Facility, and to verify that Physicist is in compliance with all state and
regulatory requirements in connection therewith.

          d. Medical Center agrees to reimburse GKF at the per case rates shown in Exhibit B (Rates)
attached hereto, which rates shall be subject to increase by the amount of any increase to GKF’s
costs. GKF shall submit a detailed invoice to Medical Center on a monthly basis for Services
rendered, and such invoices shall be payable within ten (10) days following receipt.

          e. As GKF is making the Physicist available to Medical Center as provided herein only as an
accommodation to Medical Center, Medical Center shall release, defend, indemnify, protect and hold
harmless GKF, its officers, directors, managers, members, affiliates, employees and agents, and
each of them, from any and all liability, obligation, damage, loss, cost, claim or demand
whatsoever of any kind or nature, including reasonable attorney’s fees, and costs arising directly
or indirectly from action taken or omissions made by Physicist in the provision of Services. This
Section shall survive the termination of this Agreement.

          f. Nothing set forth herein shall (i) relieve or release Medical Center of its obligation
under the Lease to provide properly trained professional, technical and support personnel
(including, without limitation, physicists) for the proper performance of Gamma Knife procedures
utilizing the Equipment; and/or (ii) obligate GKF to furnish a Physicist to Medical Center except
on the terms set forth herein.

     3. Captions. The captions and paragraph headings used herein are for convenience only
and shall not be used in construing or interpreting this Addendum.

     4. Full Force and Effect. Except as amended by this Addendum, all of the terms and
provisions of the Lease, including without limitation, the amount of the Lease Payments, shall
remain in full force and effect.

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

	 	 	 	 	 	 	 	 	 	 	 
	GK FINANCING, LLC	 	 	 	SUNRISE HOSPITAL AND MEDICAL CENTER	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Ernest A. Bates, M.D.
	 	 	 	By:
	 	/s/ Steve Otto	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Ernest A. Bates, M.D.
	 	 	 	Name:
	 	Steve Otto	 	 
	Title:

	 	Policy Committee Member
	 	 	 	Title:
	 	Chief Operating Officer and	 	 
	 

	 	 	 	 	 	 	 	Interim Chief Executive Officer	 	 

- 2 -

 

Exhibit A

SERVICES

Gamma Knife radiosurgery:

	 	•	 	Perform stereotactic treatment planning for Gamma Knife radiosurgeries.
	 
	 	•	 	Operate GK unit during treatment. Assure that all treatment parameters are set correctly
and documented.
	 
	 	•	 	Calibrate and perform quality assurance on Gamma Knife unit as required by state law and
JCAHO (daily, monthly, and annual schedule).
	 
	 	•	 	Work with client to select optimum imaging parameters (MRI, CT and/or angiography)
appropriate to each case.
	 
	 	•	 	Interface with physicians (radiation oncologists and neurosurgeons) to provide necessary
physics information for their treatment decisions.

- 3 -

 

Exhibit B

RATES

The following fees shall apply:

	 	•	 	Gamma Knife stereotactic radiosurgery case rate: * per case (multiple fraction cases
will be counted as a single case)
	 
	 	•	 	Monthly Gamma Knife calibration is included in the per case rate so long as at least one
(1) case is performed in any month.
	 
	 	•	 	Annual Gamma Knife calibration and submission of quality controls (one-time annual fee):
*

The foregoing fees include all expenses and fees associated with procedures, travel and
accommodations during scheduled visits.

- 4 -exv10w1

 

Exhibit 10.1

[Description of Mr. Talwalkar’s relocation benefits]

	 	 	 	Through May 23, 2008, LSI will provide Mr. Talwalkar with:
	 
	 	•	 	A $5,000 per month housing allowance.
	 
	 	 	 	and
	 
	 	•	 	Reimbursement of his reasonable and documented closing costs (including the reasonable
cost of a broker’s commission) associated with any sale of his home in Oregon and/or
purchase of a home in the San Jose, California area, provided that he complies with LSI’s
then existing relocation policy, if applicable, and provided that he uses a third party
reasonably satisfactory to LSI to handle such sale. LSI will also pay Mr. Talwalkar’s
reasonable costs associated with moving his household goods and personal items.

LSI will also make additional payments to him sufficient to pay any federal and state income and
employment taxes due as a result of the housing allowance and relocation payments and the
additional payments on account of taxes.exv10w2

 

Exhibit 10.2

	 	 	 	 	 	 	 
	APPROVALS

	 	 	 	 	 	Spec Number
	 

	 	 	 	CONTROLLERS	 	 
	 

	 	 	 	POLICIES
	 	COPY-REF COPY
	 

	 	
	 	 	 	CORP DOC CTRL
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Date: Feb. 1, 2007
	 
	 	 	 	 	 	 
	SUBJECT:       Employee Commuter Expense Reimbursement Policy

	 	 	 	 	 	 	 
	1.

	 	PURPOSE
	 	 	2	 
	2.

	 	APPROVALS
	 	 	2	 
	3.

	 	COMMUTER EXPENSE CATEGORIES
	 	 	2	 
	3.1.

	 	DIRECT COMMUTER TRAVEL EXPENSES
	 	 	2	 
	3.2.

	 	INDIRECT COMMUTER EXPENSES
	 	 	2	 
	4.

	 	DIRECT COMMUTER TRAVEL EXPENSE TYPES
	 	 	2	 
	4.1.1.

	 	SINGLE COMMUTE
	 	 	2	 
	4.1.2.

	 	MULTI-SEGMENT COMMUTE
	 	 	2	 
	5.

	 	TAX IMPLICATIONS FOR COMMUTERS
	 	 	2	 
	5.2.

	 	PAYROLL PROCESSES
	 	 	3	 
	6.

	 	COMMUTER EXPENSE CALCULATIONS
	 	 	3	 
	6.1.

	 	SINGLE COMMUTE
	 	 	3	 
	6.2.

	 	MULTI-SEGMENT COMMUTE
	 	 	3	 

1

 

	 	 	 	 	 	 	 
	APPROVALS

	 	 	 	 	 	Spec Number
	 

	 	 	 	CONTROLLERS	 	 
	 

	 	 	 	POLICIES
	 	COPY-REF COPY
	 

	 	
	 	 	 	CORP DOC CTRL
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Date: Feb. 1, 2007
	 
	 	 	 	 	 	 
	SUBJECT:       Employee Commuter Expense Reimbursement Policy

1. Purpose

	 	1.1.	 	This policy outlines the process by which expenses will be managed and considered for
reimbursement for employees who commute to/from LSI Corp. sites. An employee commuter
(referred to herein as the “Commuter”) is a regular fulltime employee whose primary place
of residence is more than 100 miles from their primary place of business. Primary place of
business is defined as the physical location where an employee spends more than 50% of
their hours worked. This policy will outline the reimbursement process and procedures.

2. Approvals

	 	2.1.	 	To initially establish the commute expense reimbursement benefit, approval must be
received from the Vice President of Human Resources (HR VP) and Chief Executive Officer
(CEO). Approval for Section 16(b) officers to participate in this policy must first be
approved by the Compensation Committee.
	 
	 	2.2.	 	Once established, Direct Commuter Travel Expenses will be reimbursed though the SAP
Travel Expense system and Indirect Commuter Travel reimbursements will be managed by the
Payroll department.

3. Commuter Expense Categories

	 	3.1.	 	Direct Commuter Travel Expenses

	 	3.1.1.	 	Direct Commuter Travel Expenses are defined as the expenses incurred by the Commuter
to and from their home location to and from their primary place of business. These
expenses include: round trip or one way flights to and from their home city to the LSI
office, car rental at the LSI site, airport parking expenses at the commuter’s home
location, taxi cab fees to or from the Commuter’s home to the airport or to/from the
LSI office to the airport, hotel expenses at the LSI location, and personal meals at
the LSI location.

	 	3.2.	 	Indirect Commuter Expenses

	 	3.2.1.	 	Indirect Commuter Expenses include: company-paid apartments, any utilities associated
with the apartment (e.g., telephone, cable TV, Internet connection, electricity, gas,
trash removal, water, association fees, etc.), and company-paid automobile leasing or
ownership.

4. Direct Commuter Travel Expense Types

	 	4.1.	 	Direct Commuter Travel Expenses can be broken into two groups: Single Commute and
Multi-Segment Commute. Any other kind of travel is referred to as Normal Business Travel.

	 	4.1.1.	 	Single Commute is defined as a trip directly from the Commuter’s home location to the
LSI location without any other stops (aside from a flight connection) on the way to,
from, or during the stay at the LSI site. For example: the Commuter’s home residence
is located in Phoenix, Arizona and they depart Phoenix on a Monday to their primary
place of business, the Milpitas LSI office. The Commuter stays in Milpitas for 4 days
and returns home on Thursday. This trip would be categorized as a Single Commute.
	 
	 	4.1.2.	 	Multi-Segment Commute is defined as a trip whereby the Commuter travels from their
home city to their primary place of business as well as conducts other business travel
outside their primary business location during the same trip. The order in which these
occur does not matter. For example: the Commuter lives in Phoenix, Arizona and makes a
trip to Milpitas, their primary place of business, for 2 days, then leaves Milpitas on
a trip to New York on company business. The Commuter then leaves New York and flies
directly back home to Phoenix. There would be no difference if the Commuter first went
to New York, then went to Milpitas, it would still be considered a Multi-Segment
Commute.
	 
	 	4.1.3.	 	Normal Business Travel would be any trip where the Commuter leaves their home and
travels to a non-primary place of business and returns back home. For example: our
Commuter who lives in Phoenix travels to Boston for a week then returns back home to
Phoenix without any stops at their primary place of business in Milpitas.

	5.	 	Tax Implications for Commuters

	 	5.1.	 	Direct and Indirect Commuter Travel expenses are a taxable fringe benefit and must be
included in the Commuter’s taxable income. Normal Business Travel is non-taxable and is not
considered taxable income.

2

 

	 	 	 	 	 	 	 
	APPROVALS

	 	 	 	 	 	Spec Number
	 

	 	 	 	CONTROLLERS	 	 
	 

	 	 	 	POLICIES
	 	COPY-REF COPY
	 

	 	
	 	 	 	CORP DOC CTRL
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Date: Feb. 1, 2007
	 
	 	 	 	 	 	 
	SUBJECT:       Employee Commuter Expense Reimbursement Policy

	 	 	 	If approved by the HR EVP and CEO, LSI may choose to pay the tax
burden for the Commuter by grossing-up the reimbursed commuting expense.

	 	5.2.	 	Section 16(b) officers receiving benefits under this policy must also receive
Compensation Committee approval to be eligible for tax gross-up treatment for qualifying
expenses as defined in this policy.

	 	5.3.	 	Payroll Processes

	 	5.3.1.	 	It will be the responsibility of the HR organization to notify the Payroll department
of the approval of the applicability of this policy to a new Commuter. HR VP and CEO
approval will be required.
	 
	 	5.3.2.	 	On a quarterly basis, Payroll will track and calculate the Commuter’s Direct and
Indirect commuting expenses. These amounts will be added to the Commuter’s taxable
income and reflected on their Form W-2 at the end of the calendar year. The amounts
will be grossed-up for tax purposes only if previously approved by the HR VP and CEO.

6. Commuter Expense Calculations

	 	6.1.	 	Single Commute

	 	6.1.1.	 	Direct Travel Expenses categorized as Single Commute are considered fully taxable, as
a fringe benefit, and will be added to the Commuter’s taxable income and reflected on
their Form W-2.

	 	6.2.	 	Multi-Segment Commute

	 	6.2.1.	 	Direct Travel Expenses categorized as Multi-Segment Commute are considered taxable
income and are calculated as follows:

	 	6.2.1.1.	 	For flight expenses, an average flight cost to/from the Commuter’s location is
calculated. This amount is subtracted from the price of the multi-segment flight.
The average flight cost is considered to be the taxable fringe benefit amount for
that trip. The balance is considered a Normal Business Expense and is non-taxable.
For example: a Commuter travels from their home in Phoenix to Milpitas (their
primary place of business), to New York, then back to Phoenix. The total ticket
cost is $800. The average ticket cost to/from Phoenix to Milpitas is $200.
Therefore, the taxable amount for this trip is $200 and this amount is added to the
Commuter’s taxable income. The balance of $600 is considered a non-taxable business
expense.
	 
	 	6.2.1.2.	 	For parking or transportation to/from the Commuter’s home airport, 33% of the
expense is treated as taxable and 67% is non-taxable. For example the Commuter
makes a multi-segment trip as defined above. The cost of parking their personal
vehicle at the Phoenix airport is $100. The taxable amount is $33 and this amount
is added to the Commuter’s taxable income. The balance of $67 is a non-taxable
business expense. This also applies if the Commuter took a taxi to/from their home
airport.
	 
	 	6.2.1.3.	 	The following expenses incurred while in the primary place of business on a
multi-segment trip are considered fully taxable and will be added to the Commuter’s
taxable income: rental cars, hotels, personal meals, transportation to/from the
airport(s) near the primary place of business. For example: the Commuter makes a
multi-segment trip through Milpitas, their primary place of business. While in
Milpitas they rent a car for 3 days and have a personal lunch. 100% of the meal and
car rental are taxable. If the Commuter took a taxi from the San Jose airport to
the office, then the cab fare would be fully taxable. Any expenses incurred on the
multi-segment trip outside of the Commuter’s primary place of business are
non-taxable.

	 	6.3.	 	Indirect Commuter expenses are considered a fully taxable as a fringe benefit and will
be added to the Commuter’s taxable income.

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]