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RESOLI]TIOI\ OF TIIE MEMBERS OF TIIE CHATHAM COUNTY HOSPITAL AUTIIORITY

Effective as of April 15r2016

WHEREAS, The ChathamCounty Hospital Authority (the "Authority") is a public body corporateand politic createdand existing pursuantto the Hospital Authorities Law, O.C.G.A. g3I-7-70 et. seq and establishedand reconstitutedby ChathamCounty under resolutionsof the Commissionersof ChathamCountY;

WHEREAS,

the Authority owns Memorial Medical Center, an acute care general

hospitallocated in Savannah,Georgia;

WHER.EAS, the Authority is a party to that certain Amended and RestatedLease Agreement by and among Memorial Health University Medical Center, Inc. and Mernorial Health,Inc., datedas of May I,2004, as amendedMay 1, 2012(Ihe "Lease");

WHEREAS, Memorial Health Inc. is in discussionswith Novant Health,Inc. ("Novant") with regard to potential partnershipthat would require an amendmentto the Lease;

WHEREAS, the Authority has been askedby Novant to review

and agreeto certainnon-

binding specific conceptsto be addressedin an amendmentto the Lease,as set forth in the letter

attachedhereto at Exhibit "A" (the "Novant Letter"); and

WHEREAS,

Novant has stated that execution of the non-binding Novant Letter is a

condition precedentto further discussionsand negotiationsbetween Novant and the Authority

regardinga proposedamendment to the Lease.

NOW TIIEREFORE, THE AUTIIORITY

HEREBY RESOLVES AS FOLLOWS:

Approval of Certain Correspondence

NOW, THEREFOR.E, BE IT RESOLVED, that the Authority doeshereby approvethe transmittal letter in substantiallythe same form attachedhereto as Exhibit "B" (the "Transmittal Letter") andthe Novant Letter;

FUR.THER R.ESOLVED, the appropriateofficers or authorizedto executeand deliver the Novant Letter; and

membersof

the Authority arehereby

FURTHER RESOLVED, the appropriateofficers or authorizedto executeand deliver the TransmittalLetter'

membersof

the Authority arehereby

Ratification of Prior Acts

FURTHER RESOLVED, that all prior actionstaken on the Authority's behalf by the Authority's members,directors and officers in furtheranceof the foregoing resolution are hereby ratified,adopted and approved in all respects.

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EXIIIBIT "A"

l\ovant Letter

(Seeattached)

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,lu;

'WSVAH€

I-IHALTH

April12;?016:

Hapl"/,t{bslam

Chair

Mennsrial Health" Inc.

47CI0Waters Avs,

Sav*m+aheA3'14CI4

IvIr.Bon Wat€is

Ghait

ChathnmCarrntf l'trssBit*I Authori$

4700trV,lltersAvseqs

SavannahrGA3t404

?0$$ F*or*idPla;:e &auku{rrl

,Wi,nsiu$ Sult'i[,l']C ?]1O]

nqvanth*atttrr'.tr$

Fe4.r:Sentlernenl

Ttrankvor for takirrsthe time last week to discassthe proposed partnsrship betweerr No-vant

lil;itlt;t*,

andMelr,orial l{oam In.sorrnegtionwit& {he,tr+l sacliolr,Novant Health has

req$e$iedsev

amer,tdrnent$ to the

aiitUtirfrl. ghe atrachedS-chpduio

Leaseiberweon ldbffiorial'a*d the Chatham CoqnfyHospital

ttrlop.4rties :hd$ie

A rqllrms€nts the Key f,ffiilF $at *S beli,oYe

tentativo,ly

ag-reed.O rVitk re$pect t$ thB pfopon+dl;ease Arnoadarent;

Iitlie,attac.l Koy T+rnutTsfrl$pt

;;ri;d"d

iott* fu*r*

tlcs undqf$tand,ing.

of

y urorganizatiQn'regarding

concppt*to

Asrendme*, pfea*esign a*opy oflthisletterint]1e,s.ry.ace

ale

indicated

t*1"*t*O:umail a,copyof'rhe signecl'letterto

*ig$"r{l*r;n"m *u

at p,!,r'{si-e11rerqpyfltt11i91t\0ry, QnQea

wewill

ea1h i"it.*1T11:19"1ctive

orgapizafon'hss'brs{r,receiti+

ilrapropcseAl"e{o,

oi*o*it ,.foa*Orialize:ti#Se cbncept$

teealiybCIund wlth.r,es,peot ttr'the Key

{ruenrl:rull, No f-1$y-*1i1bs

the paftieshava'

Ternrs,ontilnedin this lpttefuntit

$sbotieted

andduly signedthe Lease Amendftont'

NovailtFleaith continu$s to lookfofwardto the partnershijl lvith Memarialartclrto provi<iing

reruarkabjeSer$ to th* patiepts*f, h{emorialand the

residents'sf 'Chat}ram

Co$-rlty'

cci

C'4r1.S. ..

{rgaats

Pigqid.epf,&,GfiQ AftDa$a R, Jonat-hss,Ilart

Peter$, Btilltstettef Sx*cutiveVF& C,htefLegal0ffiEer

SCHEI}ULE A

SeeondAmendment to Arnendedand RestatedLease

BetrvcenChatham County Hospital Authority and

MemorialHealth, In+ ..

Kev Terrns

  • 1. Term - Resetterm to 40 yearsat closing. Term automaticatlyresets to 40 years.on l0'h anniversaryof closingand every 5tl'year thereafter unless either party provides notice of nonrenewal.Novant has rieht to unwindMSA with Mernorialif leaseterm falls below 20 years.

  • 2. Continudtionof Seruices

NICU andTrauma Servims - Memorialwill rtotreducdlevet

3 NICU to Level

2 or rednceLevel I Traumato Level2 withoutapproval from CCHA. CCI-IA

will notwithhold approval if reduotionis commerciallyreasonable

in light of

healthcare rnarket conditionn. ln theevent of dispute,cominercial

reasonableness of reduction is subjectto bindingarbitration.

  • b. Indigent Care --Menroriai to continuetc prnvideindigent care to in cornpliance with IntergovenmentalContract.

  • o. Graduate Medical Education - Memorialto continueto participatein CME to ilre extentfunded by third parties.

+

Reversion - All assetswithin the Memoriallegal structurewill revertwithout

compensation.All physicalassets tansferred from Memorialto a Novantaffiliate will be

returnedupon reversion withsut cornpensation.CCFIA shallhave the optionto purchase

al[, but not lessthan all, assetsheld by Novant outsideaf the Memoriallegal structffie

that are locatedin the Countiesof Chatham,Bryan, and Effingham for fair rnarketvalue.

  • 4 Bond Security - In lieu of a bondguaranty, Novant rvill causeMernorial to maintain rsssrvefunds that canbe accessedto the extentneeded to rernedyany uncuredpayment defaultunder the 20|2A,MTI. The cornbinedbalance of suchreserve funds will at all timesequal or exceedthE outstandingprincipal indebtedness under the 20124 MTL Tiris obligationwill terminateupon redenption in full of the 2AI2!, bonds.Except as prohibitedby the MTI or relatedagreements, the reservefunds wili be investedpursuani t0 a managementagreernent with NovantAsset Managernent Company.

{

FundFlow - Subjectto reserveand liquidity reguirements

contained ilr the20124 MTI,

therewill beno restrictionon Memorial'sabilitv to ffan$fsrcash to NovantHealth or its

affiliates.

Major Constr*ction -- Memcrialwill prqvide60 day notice of newmaterial

construction/improvements.

Memorial will obtainCCFIA's pl'ior witten consent,not to

beunreasonably

witlrlield, for anydemolition or destructionofbuildings or otherrnaterial

rnajorassets.

  • 7. Roporting * Memorialto submit Quarterly reportsts CCI{A (in thefonn provided duringprevious negotiations).

  • 8. ConditlonalClosing.*New lease is conditionedon CCHAapproving material changes to theDrall MSAthatwould reasonably be expected to havea m'aterialadversE effect on CCHAor theHospital,

Sesnand Agreed:

CHATHAM COTINTYHOSPITAL AUTFIORITY

ur,-/ku-," l+fun-

DonWaters, Chair

Date:4'l{,/b

MEMORIALFIEALTH.INC.

By:

I{amyHaslam, Chair

EXHIBIT "B"

Transmittal Letter

(Seeattached)

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CHATHAMCOLINTY HOSPITAL AUTHORITY

PeterS. Brunstetter

ExecutiveVice Presidentand

ChiefLegal Officer

NovantHealth

2085Frontis Plaza Boulevard

Salem,NC 27103

DearMr. Brunstetter:

4700Waters Avenue

Savannah.

GA 31404

April15,2016

Enclosedis the letterof intentwe discussedthis week,whicll' I havesigned on behalfof

the Authority. The final leasemust providethat any of the referencedchanges to the NICU and

trauma serviceswill also require Authority consent,with the only limitation being that such

consentshall not be unreasonablywithheld.

We look forwardto concludinsthe leaseon this basis.

cc:

Carl S. Armato

R. JonathanHart

Art Dana

Sincerely,

CHATHA]\4COI.INTY HOSPITAL AUTHORITY

l\'*'

knfr:LM-

Don Waters,Chairman

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