Exhibit 10.1

 

AMENDMENT NO. 2 TO LOAN AGREEMENT

 

THIS AMENDMENT NO. 2 TO LOAN AGREEMENT (the “Second Amendment”) is made and
entered into as of October 2, 2003 by and between SUNLINK HEALTH SYSTEMS, INC.
(“SunLink”), an Ohio corporation, as lender (the “Initial Lender”), and any
lenders party hereto from time to time (collectively the “Lenders”), and
HEALTHMONT, INC. (“HealthMont”), a Tennessee corporation, as borrower (the
“Borrower”).

 

W I T N E S S E T H:

 

WHEREAS, SunLink and Borrower have entered into that certain Loan Agreement
dated as of March 24, 2003, which was amended by an Amendment No. 1 To Loan
Agreement dated as of July 30, 2003 (such Loan Agreement, as so amended is
herein called the “Loan Agreement”); and

 

WHEREAS, SunLink and Borrower now desire to further amend the Loan Agreement by
extending the Scheduled Maturity Date (as defined in the Loan Agreement) from
December 31, 2004, to September 30, 2005;

 

NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION (the receipt, sufficiency,
and adequacy of which are hereby acknowledged), SunLink and Borrower agree as
follows:

 

1. Amendment. The definition of the defined term “Scheduled Maturity Date” set
forth in Section 1.01 on page 10 of the Loan Agreement is hereby amended and
modified by replacing the date “December 31, 2004” with the date “September 30,
2005”.

 

2. No Other Amendments. No other amendments are being made to the Loan
Agreement, except as those set forth above in Section 1 of this First Amendment.
All of the other provisions of the Loan Agreement are hereby ratified and
confirmed by the parties; and all of the provisions of the Loan Agreement, as
amended by this Second Amendment are to continue and remain in full force and
effect.

 

3. Governing Law. This Second Amendment is to be governed by, and construed and
enforced in accordance with, the laws of the State of Georgia without regard to
principles of conflicts of laws thereof.

 

[Signatures On Next Page]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be
duly executed and delivered under seal, all as of the date first stated above.

 

        BORROWER:                   HEALTHMONT, INC. (CORPORATE SEAL)          
      By:   /s/    TIMOTHY S. HILL                      

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Timothy S. Hill

President and Chief Executive Officer

 

        LENDER:                   SUNLINK HEALTH SYSTEMS, INC.

(CORPORATE SEAL)

                By:   /s/    ROBERT M. THORNTON, JR.                      

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Robert M. Thornton, Jr.

Chief Executive Officer