Document:

EX-10.25

 Exhibit 10.25 

LEASE AGREEMENT 

THIS LEASE AGREEMENT (the “Lease”) is made as of October 11, 2006, by and between Foundation
Bariatric Real Estate of Huebner, L.P., as landlord (“Landlord”), and Foundation Bariatric Hospital of San Antonio, L.P., as tenant (“Tenant”), with reference to the
following: 
 A. Landlord owns Condominium Unit 301 (the “Unit”) in The Village on Huebner II Office
Condominiums (the “Project”), which is located at 9502 Huebner Road, San Antonio, Texas, which is improved with a building (the “Building”) and adjacent parking and other improvements. 

B. The land, the Building, the Unit, the adjacent parking and other improvements, are subject to that Condominium Declaration for The Villages
on Huebner II Office Condominiums, which is recorded as Document #20060164728 in Book 12250, Page 1744 in the records of Bexar County, Texas (the “Declaration”), which created the Project pursuant to the Texas Uniform
Condominium Act (the “Act”). 
  

	1.	Demised Description 

  

	 	A.	Landlord does hereby lease to Tenant the Unit and the related interests in the Common Elements and the Limited Common Elements as provided in the Declaration (the “Premises”). The legal description of
the Premises are set forth in Exhibit A attached hereto and incorporated herein. 

  

	 	B.	The Commencement Date of the Lease (“Commencement Date”) shall be the date first written above. 

  

	 	C.	Landlord represents that it has delivered to Tenant complete accurate copies of the Declaration and the “Plan,” “Plat,” and “Bylaws”
of the “Association,” (all as defined in the Act), and Tenant hereby approves of the same and agrees to be bound by and subject to all of the terms, conditions, obligations and restrictions affecting the
Premises set forth therein. 

  

	2.	Term 

  

	 	A.	The initial term of this Lease shall be for fifteen (15) years commencing on the Commencement Date. Concurrently with the execution of this Lease, Landlord and Tenant agree that they shall execute the Commencement
Date Certificate attached hereto as Exhibit B. The term “Term Year” means a period of twelve (12) consecutive months. The first Term Year shall begin on the Commencement Date if the Commencement Date is the first day of a
calendar month. Otherwise the first Term Year shall begin on the first day of the first calendar month after the Commencement Date. Each succeeding Term Year shall begin on the anniversary of the first Term Year. 

	 	B.	Tenant is hereby granted and shall, if no event of default exists at the time the option is exercised or at the time of the commencement of any additional term, have the options to renew this Lease for two
(2) additional terms of five (5) years each on the same terms, covenants and conditions and subject to the same restrictions and exceptions herein contained. This option shall be exercised by Tenant delivering to Landlord in person or by
United States mail not less three-hundred sixty-five (365) days and not more than Five Hundred Forty-five (545) days prior to the expiration of the then appropriate term, written notice of Tenant’s irrevocable election to renew the
term of this Lease as herein provided. 

  

	3.	Rent and Security Deposit. 

  

	 	A.	Commencing upon the Commencement Date, Tenant agrees to and shall pay to Landlord in equal monthly installments, as base rent for the Premises as follows (“Base Rent”):

  

									
	 Period
	  	Annual Base
Rent	 	  	Monthly
Base Rent	 
	 Term Year 1
	  	$	478,800.00	  	  	$	39,900.00	  
	 Term Year 2
	  	$	492,685.20	  	  	$	41,057.10	  
	 Term Year 3
	  	$	506,973.07	  	  	$	42,247.76	  
	 Term Year 4
	  	$	521,675.29	  	  	$	43,472.94	  
	 Term Year 5
	  	$	536,803.87	  	  	$	44,733.66	  
	 Term Year 6
	  	$	552,371.19	  	  	$	46,030.93	  
	 Term Year 7
	  	$	568,389.95	  	  	$	47,365.83	  
	 Term Year 8
	  	$	584,873.26	  	  	$	48,739.44	  
	 Term Year 9
	  	$	601,834.58	  	  	$	50,152.88	  
	 Term Year 10
	  	$	619,287.79	  	  	$	51,607.32	  
	 Term Year 11
	  	$	637,247.13	  	  	$	53,103.93	  
	 Term Year 12
	  	$	655,727.30	  	  	$	54,643.94	  
	 Term Year 13
	  	$	674,743.39	  	  	$	56,228.62	  
	 Term Year 14
	  	$	694,310.95	  	  	$	57,859.25	  
	 Term Year 15
	  	$	714,445.97	  	  	$	59,537.16	  

  
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 Base Rent shall be payable in advance on the first day of each calendar month during the term and
shall be proportionately reduced for any partial month during the term. Base Rent for the month in which the Commencement Date occurs, however, shall be payable on the first day of the following calendar month. Base Rent, Real Estate Taxes,
Assessments, and any other amounts which Tenant is or becomes obligated to pay Landlord or under this Lease or other agreement entered in connection herewith, are sometimes herein referred to collectively as “Rent,”
and all remedies applicable to the non-payment of rent shall be applicable thereto. 
  

	 	B.	Base Rent during any exercised renewal option shall increase annually by 2.9%. 

  

	 	C.	Tenant shall not be required to make any security deposit in connection with the Lease. 

  

	4.	Use 

 Tenant shall use and occupy the Premises in accordance with all of the terms and
conditions of the Declaration for the purpose of a medical clinic and related office uses and for no other purposes except those authorized in writing by Landlord, which authority shall not be unreasonably withheld, conditioned or delayed. Tenant
may operate on the Premises, at Tenant’s option, on a seven (7) days-a-week, twenty-four (24) hours-a-day basis, subject, however, to zoning and other regulatory requirements. 

 

	5.	Utilities, Taxes, and Association Assessments 

 Tenant shall pay all charges for water,
electricity, gas, telephone and other utility services furnished to the Premises during this term. Landlord agrees to bring water, electricity, gas and sanitary sewer to the Premises as provided in the Plans and Specifications. 

Tenant shall pay directly to the taxing authority all real estate taxes and general and special assessments that are separately taxed or
assessed by any lawful authority on the Premises as a separate parcel of real property (collectively, “Real Estate Taxes”). Real Estate Taxes shall not include: (i) income, profits, intangible, documentary stamp, franchise,
corporate, capital stock, succession, estate, gift or inheritance taxes or taxes substituted for or in lieu of the foregoing exclusions; or (ii) any assessment or additional tax associated with the development or further improvement of the
Premises, including, but not limited to, the widening of exterior roads, the installation of or hook up to sewer lines, sanitary and storm drainage systems and other utility lines and installations, or the installation of traffic signals. 

Tenant, at Tenant’s sole cost and expense, shall be entitled to contest Real Estate Taxes or valuation notices affecting the Premises and
Landlord shall reasonably cooperate with Tenant in any such proceeding (including withholding payment of Real Estate Taxes if required by applicable law in connection with a contest). Landlord shall furnish Tenant with copies of all tax bills or
valuation notices related to the Premises promptly upon receipt. If Tenant decides to contest, Tenant shall promptly notify Landlord. If Tenant prevails in a tax contest, it shall be entitled to recover the costs of the contest out of the savings
achieved. 

  
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 Within 30 days after payment, Tenant shall provide to Landlord written evidence that Real Estate
Taxes for the most recently due and owing period were paid in a timely manner. 
 Tenant will pay the full amount of all taxes, assessments,
impositions, levies, charges, excises, fees, licenses and other sums levied, assessed, charged or imposed by any governmental authority or other taxing authority upon Tenant’s leasehold interest under this Lease, and all alterations additions,
fixtures, (including removable trade fixtures, hereinafter defined), inventory and other property installed or placed or permitted at the Premises by Tenant. Within thirty (30) days after notice from Landlord, Tenant will furnish Landlord a
true copy of receipts evidencing such payment received by Tenant from the governmental authority or other taxing authority assessing such charges. 

Tenant shall pay before they are delinquent all assessments levied by the Association pursuant to the Declaration and Bylaws
(“Assessments”). Tenant shall not be obligated to make payment of the Assessments more than fifteen days before payment of the Assessments would be delinquent and Tenant shall not be obligated to pay Assessments pending a tax
contest if applicable law so provides. Tenant shall make the check for an Assessment payable directly to the Association. Within 30 days after payment, Tenant shall provide to Landlord with written evidence that an Assessment was paid in a timely
manner. Assessments and Real Estate Taxes covering any period not included in the term of this Lease shall be prorated between Landlord and Tenant. 
  

	6.	Alterations, Additions, Installations and Removal Thereof 

 Tenant may also, at its own
expense, either at the commencement of or during the term of this Lease, make such alterations in and/or additions to the Premises including, without prejudice to the generality of the foregoing, the addition of a television antenna, flue openings
and an emergency generator as well as alterations in the water, gas, and the electric wiring system, as may be necessary to fit the same for its business, upon first obtaining the written approval of Landlord as to the materials to be used and the
manner of making such alterations and/or additions. Landlord covenants not to unreasonably withhold, condition or delay its approval of alterations and/or additions proposed to be made by Tenant. All alterations, installations and remodels shall be
subject to the restrictions and conditions of the Declaration. 
 At any time prior to the expiration or earlier termination of this Lease,
Tenant may remove any or all such alterations, additions or installations in such a manner as will not substantially injure the Premises, or the portion or portions affected by such removal, and the Premises shall be restored to the same condition
as existed prior to the making of such alteration, addition, or installation, ordinary wear and tear, damage or destruction by fire, flood, storm, civil commotion, or other unavoidable cause excepted. All alterations, additions, or installations not
so removed by Tenant shall become the property of Landlord without liability on Landlord’s part to pay for the same. 

  
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	7.	Trade Fixtures, Personal Property 

 All articles of personal property and all business
and trade fixtures, machinery and equipment, furniture and movable partitions owned by Tenant or installed by Tenant after the Commencement Date at its expense in the Premises (“Tenant Trade Fixture”) shall be and
remain the property of Tenant and may be removed by Tenant at any time during the term of this Lease provided no event of default exists, and provided further that Tenant shall repair any damage caused by such removal. Tenant’s water treatment
equipment shall be considered a Tenant Trade Fixture for purposes of this Lease. 
  

	8.	Condition of Premises Maintenance and Repair 

 Tenant’s taking possession of any
portion of the Premises shall be conclusive evidence that such portion of the Premises was in good order and satisfactory condition when the Tenant took possession. No promise of the Landlord to alter, remodel or improve the Premises or the Building
and no representation by Landlord or its agents respecting the condition of the Premises or the Building have been made to Tenant or relied upon by Tenant other than as may be contained in this Lease or in any written amendment hereto signed by
Landlord and Tenant. 
 Except as hereinafter provided, Tenant shall maintain and keep the interior of the Premises in good repair, free of
refuse and rubbish and shall return the same at the expiration or termination of this Lease in as good condition as received by Tenant, ordinary wear and tear, and damage or destruction by fire, flood, storm, civil commotion or other unavoidable
causes excepted; provided, however, that if alterations, additions and/or installations shall have been made by Tenant as provided for in this Lease and approved in writing by Landlord, Tenant shall not be required to restore the Premises to the
condition in which they were prior to such alterations, additions and/or installations except as hereinafter provided. Tenant shall be responsible for maintenance and repair of Tenant’s equipment in the Premises and shall replace all broken
glass. 
 Landlord shall, without expense to Tenant, cause all other parts of the Premises to be maintained in good condition and repair and
all necessary repairs to the foundations, structure, load bearing walls, exterior walls, roof, gutters, and downspouts, if any, on or appurtenant to the Premises to be made, unless damage to any of the above are caused by the Tenant’s
negligence or any employee, agent, invitee, or guest of Tenant. Notwithstanding anything to the contrary in the foregoing sentence, to the extent that the Association is responsible under the Declaration for the repair or maintenance of any of the
above Landlord obligations, the Association shall be solely responsible for the repair or maintenance of such items. 
 Tenant shall be
responsible for the regular maintenance of the heating/air conditioning systems serving the Premises; and shall maintain a service agreement in effect at all times during the term of this Lease at the Tenant’s expense; and further provided that
the Tenant shall be responsible for the major repairs to and replacement of the systems. 

  
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	9.	Indemnification 

 Tenant agrees to indemnify and hold Landlord harmless against all
claims, demands, costs and expenses, including reasonable attorney’s fees for the defense thereof, arising from Tenant’s conduct, occupancy or management of Tenant’s business, its use of the Premises, from construction of improvements
by Tenant, or from any negligence of Tenant, its agents, servants, contractors or employees in the Premises. Notwithstanding anything to the contrary contained herein, the foregoing provision shall not be construed to make Tenant responsible for
loss, damage, liability or expense resulting from injuries caused by any negligence or intentional misconduct of Landlord, its agents, servants, contractors or employees. In case of any action or proceeding brought against Landlord by reason of such
claim as is described in the initial sentence of this Paragraph 9, Tenant, upon notice from Landlord, covenants to defend such action or proceeding by counsel reasonably acceptable to Landlord. 

Landlord agrees to indemnify and hold Tenant harmless against all claims, demands, costs and expenses, including reasonable attorney’s
fees for the defense thereof, arising from Landlord’s conduct, occupancy or management of Landlord’s business, from construction of improvements by Landlord, from any breach on the part of the Landlord of any conditions of this Lease, or
from any negligence of Landlord, its agents, servants, contractors or employees in the Premises. Notwithstanding anything to the contrary contained herein, the foregoing provision shall not be construed to make Landlord responsible for loss, damage,
liability or expense resulting from injuries caused by any negligence or intentional misconduct of Tenant, its agents, servants, contractors or employees. 
  

	10.	Insurance 

 At all times during the term, Tenant shall carry and maintain: 

 

	 	(i)	Bodily injury and property damage liability insurance equivalent to coverage offered by a commercial general liability form, with a combined single occurrence limit of not less than $1,000,000, and including personal
injury and contractual liability coverage for the performance by Tenant of the indemnity obligations in this Lease; 

  

	 	(ii)	Insurance covering all of the Tenant Trade Fixtures in an amount not less than the full replacement cost, on an “all risk” basis; and 

 

	 	(iii)	Worker’s compensation insurance insuring against and satisfying Tenant’s obligations and liabilities under the worker’s compensation laws of the State of Texas, including employer’s liability
insurance in the limits required by law. 

 The insurance referred to in (ii) shall name Landlord and Tenant as their
interests may appear. The insurance referred to in (i) shall name Landlord as an additional insured. Certificates of insurance will be delivered to Landlord prior to Tenant’s occupancy of the Premises and from time to time at least ten
days prior to the expiration of the Term of each such policy. All policies shall provide that the carrier will endeavor to provide at least ten days notice of any cancellation or material change in coverage. 

  
 6 

 Landlord and Tenant each waive any and all rights to recover against the other, or against the
officers, directors, shareholders, partners, joint venturers, employees, agents, customers, invitees, or business visitors of such other party or of such other Tenant, for any loss or damage to such waiving party arising from any cause covered by
any property insurance required to be carried by such party pursuant to this Lease or any other property insurance actually carried by such party to the extent of the limits of such policy. Landlord and Tenant from time to time will cause their
respective insurers to issue appropriate waiver of subrogation rights endorsements to all property insurance policies carried in connection with the Premises. 
  

	11.	Compliance With Laws 

 Tenant acknowledges that no trade or occupation shall be conducted
in the Premises or use made thereof which will be unlawful, improper, excessively noisy or offensive, or contrary to any law or any municipal by-law or ordinance in force in the state, city or town in which the Premises are situated. 

 

	 	A.	Tenant shall give prompt notice to Landlord of any written notice it receives of the violation of any law or requirement of public authority, and at its own expense shall comply with all laws and requirements of public
authorities which shall, with respect to the conduct of Tenant’s business in the Premises, or the abatement of any nuisance, impose any obligation, order or duty on Landlord or Tenant arising from (i) Tenant’s use of the Premises,
(ii) Tenant’s conduct of its business or operation of its installations, equipment or other property, (iii) any cause or condition created by or at the instance of Tenant, other than by Landlord’s performance of any work for or
on behalf of Tenant, or (iv) Tenant’s breach of its obligations under this Lease. Tenant, however, shall not be so required to make any structural or other substantial change in the Premises. Furthermore, Tenant need not comply with any
such law or requirement of public authority so long as Tenant shall be contesting the validity thereof or the applicability thereof to the Premises, in accordance with subdivision B of this paragraph. 

 

	 	B.	Tenant may, at its expense (and if necessary in the name of, but without expense to, Landlord) contest, by appropriate proceedings prosecuted diligently and in good faith, the validity, or applicability to the Premises,
of any law or requirement of public authority and Landlord shall cooperate with Tenant in such proceedings, provided that: 

  

	 	(i)	Landlord shall not be subject to any fine or criminal penalty or to prosecution for a crime nor shall the Premises or any part thereof be subject to being condemned or vacated, by reason of noncompliance or otherwise by
reason of such contest. 

  

	 	(ii)	Tenant shall defend, indemnify, and hold harmless the Landlord against all liability, loss or damage which Landlord shall suffer by reason of such noncompliance or contest, including reasonable attorney’s fees and
other expenses reasonably incurred by Landlord. 

  
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	 	(iii)	Tenant shall keep Landlord advised as to the status of such proceedings. 

  

	12.	Casualty Loss 

 In the event that the Premises or any part of the Project is damaged by
fire or other casualty, Landlord shall forthwith proceed to repair and restore the Premises or cause the Association to repair and restore the Premises or Project to the condition existing prior to the damage, subject to the terms and conditions of
the Declaration, including the required payment of any insurance proceeds, which shall take precedence with regards to Landlord’s obligation to repair or restore the Premises under this Paragraph 12. Tenant’s rent shall be abated in just
proportion during the period of impaired use of the Premises. If more than fifty percent (50%) of the inside space of the Premises or the limited common elements related to the Premises are so damaged, either Landlord or Tenant may cancel this
Lease on thirty (30) days notice and rent shall be apportioned as of the date of the casualty. If a registered engineer or architect jointly acceptable to Landlord and Tenant shall notify them within thirty (30) days after such fire or
casualty that, in his/her opinion, the damage to the Premises or the limited common elements related to the Premises cannot be repaired so as to substantially restore the Premises to its former condition within one hundred eighty (180) days
after such fire or casualty or if the Premises and the limited common elements related to the Premises are in fact not restored to substantially the same condition as existed prior to such fire or casualty within one hundred eighty (180) days
after such occurrence, then this Lease may be terminated by either Landlord or Tenant and rent shall be apportioned as of the termination date 
  

	13.	Condemnation 

 In the event the Premises or the limited common elements related to the
Premises shall be taken for public use by the city, state, federal government, public authority or other corporation having the power of eminent domain, then this Lease shall terminate as of the date on which possession thereof shall be taken for
such public use or, at the option of Tenant, as of the date on which the Premises shall become unsuitable for Tenant’s regular business by reason of such taking; provided, however, that if only a part of the Premises or any material portion of
the common elements of the Project or limited common elements allocated to the Premises, such termination shall be at the option of Tenant only. If such a taking occurs, and Tenant elects not to terminate this Lease, there shall be a proportionate
reduction of the rent to be paid under this Lease from and after the date such possession is taken for public use, but Landlord shall have no requirement to construct any additional improvements on or to its Premises. Tenant shall have not have the
right to participate, directly or indirectly, in any award for such public taking on account of such public taking. 
  

	14.	Default 

  

	 	A.	The following events shall be deemed to be events of default by Tenant under this Lease. 

  

	 	(1)	Tenant shall fail to pay any installment of the Rent herein when due, or any other payment or reimbursement to Landlord required herein when due, and such failure shall continue for a period of five (5) days from
the date written notice of such non-payment is delivered by Landlord to Tenant. 

  
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	 	(2)	Tenant shall become insolvent, or shall make a transfer in fraud of creditors, or shall make and assignment for the benefit of creditors, or shall permit the Premises or the leasehold estate created hereby to be taken
on execution or other process of law in any action against Tenant. 

  

	 	(3)	Tenant shall file a petition, or a petition is filed against Tenant, under any section or chapter of the United States Bankruptcy Code (Title 11 of the United States Code), as amended, or under any similar law or
statute of the United States or any State thereof, or Tenant shall be adjudged bankrupt or insolvent in proceedings filed against Tenant thereof. 

  

	 	(4)	A receiver or trustee shall be appointed for all or substantially all of the assets of the Tenant. 

  

	 	(5)	Tenant shall fail to take occupancy of the Premises within a reasonable time after the Commencement Date. 

  

	 	(6)	Tenant shall fail to comply with any term, provision or covenant of the Lease (other than any monetary payment obligation, which shall be subject to the cure period set forth in 14.A(1) above), and shall not cure such
failure within thirty (30) days after written notice thereof to Tenant provided; however, that if the nature of the default is such that the same cannot reasonably be cured within such period, Tenant shall not be deemed to be in default if
within such period Tenant shall commence such cure and thereafter diligently prosecute the same to completion, but in no event shall the Tenant have longer than ninety (90) days to cure such failure. 

 

	 	B.	Upon the occurrence of any of such events of default described in Paragraph 14(A) hereof, and after any applicable cure period, Landlord shall have the option to pursue any one or more of the remedies available to
Landlord at law or in equity in connection with such event of default, including the right to terminate Tenant’s right of possession, and to re-let the Premises and receive the rent therefor on Tenant’s account, which rent Landlord shall
first apply to any and all expenses it incurred in so re-letting the Premises and then to the satisfaction of Tenant’s obligations hereunder, and Tenant agrees to pay to the Landlord on demand any deficiency between the rental received from
subletting (after first covering Landlord’s expenses of re-letting) and the Rental reserved hereunder. Upon the occurrence of any event of default, Landlord shall use commercially reasonable efforts to mitigate its damages. 

  
 9 

 If Tenant fails to pay any installment of Rent hereunder within ten (10) days of the date
when such installment is due, to help defray the additional cost to Landlord for processing such late payments, Tenant shall pay to Landlord on demand a late charge in the amount of $3,000; and the failure to pay such amount within five
(5) days after Tenant’s receipt of written demand therefor shall be an event of default hereunder. The provision for such late charge shall be in addition to all of Landlord’s other rights and remedies hereunder or at law and shall
not be construed as liquidated damages or as limiting Landlord’s remedies in any manner. 
 All rights and remedies of Landlord herein
existing at law or in equity are cumulative and the exercise of one or more rights or remedies shall not be taken to exclude or waive the right to the exercise any other. No act or thing done by the Landlord or its agents during the term hereby
granted shall be deemed a termination of this Lease or an acceptance of the surrender of the Premises, and no agreements to terminate this lease or accept a surrender of said Premises shall be valid unless such agreement is in writing and signed by
Landlord. No waiver by Landlord or Tenant, of any violation or breach of any of the terms, provisions and covenants herein, contained shall be deemed or construed to constitute a waiver of any other violation or breach of any of the items, provision
and covenants herein contained. 
  

	15.	Landlord’s Right To Enter the Premises 

 Tenant shall permit Landlord or its agent
to enter at all reasonable times and upon reasonable notice (and in case of emergency at any time) to make such alterations or repairs therein as may be necessary for the safety or the preservation thereof, or for any other reasonable purposes.
Tenant shall also permit Landlord or its agents, on or after one hundred twenty (120) days next preceding the expiration of the term of this Lease, provided that the lease term has not been renewed, to show the Premises to prospective tenants
at reasonable times, and to place notices on the front of said Premises, or on any part thereof, offering the Premises for lease or for sale. 
  

	16.	Assignment and Subletting 

 Tenant shall not assign this Lease or sublet the whole or any
part of the Premises without the prior written consent of Landlord, such consent not to be unreasonably withheld, conditioned or delayed. In the event of any such assignment, Tenant shall deliver to Landlord within a reasonable time thereafter, a
written agreement from the assignee agreeing with Landlord to perform the material terms, covenants, and conditions of Tenant contained in this Lease. 

Notwithstanding anything contained herein to the contrary, Tenant may assign this Lease or sublease the Premises, in whole or in part, without
the consent of Landlord, to: 
  

	 	(a)	any entity into which or with which Tenant has merged or consolidated; 

  

	 	(b)	any parent, subsidiary, successor, or wholly-owned affiliate entity of Tenant; 

  

	 	(c)	any entity which acquires all or substantially all of the assets or ownership interests of Tenant; 

  
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	 	(d)	any partnership, the majority interest of which shall be owned by Tenant or a parent, subsidiary, successor or wholly-owned affiliate entity of Tenant; or 

 

	 	(e)	any purchaser of substantially all of the assets of Tenant in the Premises; 

 provided that any
such assignee or successor shall agree in writing to assume and perform all of the terms and conditions of this Lease on Tenant’s part to be performed from and after the effective date of such assignment or subletting. Notwithstanding anything
contained herein to the contrary, Landlord may assign this Lease without the consent of Tenant. 
  

	17.	Holding Over 

 If Tenant or anyone claiming under Tenant shall remain in possession of
the Premises or any part thereof after the expiration of the term of this Lease without any agreement in writing between the Landlord and Tenant with respect thereto, the person remaining in possession shall be deemed a month-to-month tenant at a
rental rate equal to one hundred fifty percent (150%) of the Base Rent in effect upon the date of such expiration or termination until the tenancy is terminated in a manner provided by law. 

 

	18.	Estoppel Certificates 

 Upon not less than ten (10) business days prior written
request, either Landlord or Tenant agrees, in favor of the other, to execute, acknowledge and deliver a statement in writing certifying that this Lease is unmodified and in full force and effect (or, if there have been any modifications that the
same are in full force and effect as modified and stating the modifications), the dates to which rent and other charges required under this Lease have been paid, and any other information reasonably requested. Any such statement delivered pursuant
to this paragraph may be relied upon by any prospective purchaser, mortgagee or lending source. 
  

	19.	Acts Of God 

 In any case where either party hereto is required to do any act, delays
caused by or resulting from acts of God, war, civil commotion, fire, flood or other casualty, labor difficulties, shortages of labor, materials or equipment, unusual government regulations, unusually severe weather, or other causes beyond such
party’s reasonable control shall not be counted in determining the time during which such act shall be completed, whether such time be designated by a fixed date, a fixed time or “a reasonable time,” and such time
shall be deemed to be extended by the period of such delay. 
  

	20.	Mortgage Subordination 

 This Lease shall be subordinate to any mortgage, deed of trust,
deed to secure debt, or other lien or security interest encumbering the Premises (collectively, a “Mortgage”), provided that the holder of which (the “Mortgagee”) has entered into a non-disturbance agreement (a
“Non-Disturbance Agreement”) pursuant to which: (i) this Lease shall not be terminated or otherwise affected, nor Tenant’s continued possession of the Premises disturbed, by reason of any foreclosure, trustee’s sale, deed in
lieu of foreclosure or 

  
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similar proceeding (collectively, a “Foreclosure”); and (ii) upon any Foreclosure, the purchaser automatically shall succeed to the interests and obligations of Landlord under this
Lease, this Lease shall constitute a direct lease between the purchaser, as landlord, and Tenant, as tenant, and Tenant shall attorn to the purchaser. The terms of the Non-Disturbance Agreement shall otherwise be reasonably satisfactory to Tenant
and the Mortgagee. Landlord warrants that as of the date of this Lease, no Mortgage encumbers the Premises except for the lien of Security Mutual Life Insurance Company of New York (the “Existing Lender”). Landlord shall provide to Tenant,
contemporaneously with the execution of this Lease, a Non-Disturbance Agreement from the Existing Lender in form and substance reasonably acceptable to Tenant. Upon request from time to time, Tenant shall execute agreements subordinating this Lease
to future Mortgages provided the subordination agreements contain Non-Disturbance Agreements as provided above. Any subordination agreement may include a provision that any subsequent amendment to this Lease made without the Mortgagee’s consent
will not be binding upon the Mortgagee or upon any purchaser on Foreclosure. 
 At the request of any Mortgagee, and subject to the
requirement that the Tenant receive a Non-Disturbance Agreement from such Mortgagee, Tenant shall attorn to such Mortgagee, its successors in interest, or any purchaser in a foreclosure sale. Tenant shall promptly execute and deliver any instrument
that such successor landlord may reasonably request (1) evidencing such attornment; and (2) setting forth the terms and conditions of Tenant’s tenancy. Upon such attornment, this Lease shall continue in full force and effect as a
direct lease between such successor landlord and Tenant on all of the terms, conditions, and covenants set forth in this Lease, except that such successor landlord shall not be (1) liable for any act or omission of Landlord, or required to cure
any default of Landlord, except to the extent: (a) such act or omission constitutes a nonmonetary default of Landlord; (b) such act or omission continues beyond the date when such successor landlord succeeds to Landlord’s interest;
and (c) Tenant shall have given prompt written notice of such act or omission to Mortgagee, with an opportunity to cure the same, in accordance with the terms hereof; (2) subject to any offsets, defenses, claims, counterclaims, offsets, or
setoffs that Tenant may have against Landlord; (3) bound by any Rent that Tenant may have paid more than one month in advance; (4) liable for any security or other deposit, or surrender of any letter of credit, whether or not still held by
Landlord, unless such security or other deposit was actually received by Mortgagee or such successor landlord, and in the event of receipt of any such security deposit, Mortgagee’s or such successor landlord’s obligations with respect
thereto shall be limited to the amount of such security deposit actually received by Mortgagee or such successor landlord, and Mortgagee or such successor landlord shall be entitled to all rights, privileges, and benefits of Landlord set forth in
this Lease with respect thereto; (5) bound by any agreement between Landlord and Tenant not expressly set forth in this Lease (or any exhibit thereto), as amended (subject to Mortgagee’s right to consent thereto); (6) bound by any
agreement, amendment, extension, modification, cancellation, or termination of this Lease that was made without the prior written consent of Mortgagee, which consent may be withheld, conditioned, or delayed for any reason, in the sole discretion of
Mortgagee; (7) liable to Tenant under this Lease or otherwise from and after such time as Mortgagee or such successor landlord ceases to be the owner of the Property; or (8) bound by, or liable for any breach of, any representation or
warranty or indemnity agreement of any kind contained in this Lease or otherwise made by Landlord. 

  
 12 

	21.	Quiet Enjoyment 

 Landlord agrees that if Tenant pays the rent and performs and observes
the agreements, conditions and other provisions on its part to be performed and observed, Tenant shall and may peaceably and quietly have, hold and enjoy the Premises during the term of this Lease and any extensions thereof without any manner of
hindrance or molestation from Landlord or anyone claiming under Landlord, subject, however, to the terms of this Lease and any instruments having a prior lien. Tenant shall have the right to terminate this Lease by notice to Landlord for breach of
any covenant contained in this Paragraph 21. 
  

	22.	Notices 

 Except as expressly provided to the contrary in this Lease, every notice or
other communication to be given by either party to the other with respect hereto or to the Premises or Project, shall be in writing and shall not be effective for any purpose unless the same shall be served personally or by national air courier
service, or United States certified mail, return receipt requested, postage prepaid, to the parties at the addresses set forth below or such other address or addresses as Tenant or Landlord may from time to time designate by notice given as above
provided. Every notice or other communication hereunder shall be deemed to have been given as of the third business day following the date of such mailing (or as of any earlier date evidenced by a receipt from such national air courier service or
the United States Postal Service) or immediately if personally delivered. Notices not sent in accordance with the foregoing shall be of no force or effect until received by the foregoing parties at such addresses required herein. Notices shall be
delivered to the following addresses: 
  

	 	A.	If given or served by Landlord, by delivering the notice to the Tenant at the Premises, with a copy addressed to: Foundation Management Affiliates, L.P., Attn. Legal Department, 13900 North Portland Ave., Suite 200,
Oklahoma City, OK 73134; or 

  

	 	B.	If given or served by Tenant, by delivering the notice to Landlord at 1800 Ridge, Suite 109, Evanston Illinois, 60201. 

  

	23.	Self-Help 

 If Tenant shall default in the performance or observance of any agreement or
condition in this Lease contained on its part to be performed or observed, other than an obligation to pay money, and shall not cure such default as provided herein, Landlord may, at its option, without waiving any claim for damages for breach of
this Lease, at any time thereafter, cure such default for the account of Tenant and any amount paid or any liability incurred by Landlord in so doing shall be deemed paid or incurred for the account of Tenant, and Tenant agrees to reimburse Landlord
thereafter and save Landlord harmless therefrom. 

  
 13 

 If Landlord shall default in the performance or observance of any agreement or condition in this
Lease contained on its part to be performed or observed and shall not cure such default as provided herein, Tenant may, at its option, without waiving any claim of damages for breach of this Lease, at any time thereafter, cure such default for the
account of Landlord and any amount paid or any liability incurred by Tenant in so doing shall be deemed paid or incurred for the account of Landlord and Landlord agrees to reimburse Tenant thereafter and save Tenant harmless therefrom. 

 

	24.	Hazardous Materials 

  

	 	A.	Landlord represents and warrants that as of the commencement of the term of this Lease, it has no knowledge of any Hazardous Material (as defined below) of whatever nature at the Project or the land upon which the
Project is located. If Landlord has performed testing at the Project (or land upon which the Project is located), Landlord warrants that it has provided Tenant with a copy of any reports resulting from such testing (i.e., a Phase 1 Study).
Landlord shall have no liability for nor indemnification obligation with respect to any hazardous or toxic material released onto the Project or the land upon which the Project is located, by Tenant or its agents, employees, contractors, invitees or
licensees. “Hazardous Material” shall mean any (1) hazardous waste as defined in the federal Resource Conservation and Recovery Act, as amended (42 U.S.C. §6901, et seq.), and regulations promulgated
thereunder; (2) hazardous substance as defined in the federal Comprehensive Environmental Response, Compensation, and Liability Act, as amended (42 U.S.C. §9601, et seq.), and regulations promulgated thereunder;
(3) petroleum or liquid petroleum or wastes; and (4) other toxic or hazardous substances that may be regulated from time to time by federal, state, or local environmental laws. 

 

	 	B.	Tenant shall comply with applicable laws (including all environmental laws) with respect to the use, transportation, storage, maintenance, generation, manufacturing, handling, and disposition of Hazardous Material.
Tenant will assume full responsibility and liability for and will indemnify, defend and hold Landlord harmless from any and all claims and criminal and/or civil liability as a result of any Hazardous Materials released onto the Premises, the Project
(or land upon which the Project is located) by Tenant. 

  

	25.	Miscellaneous 

  

	 	A.	This Lease shall be governed by and construed in accordance with the laws of the State of Texas, and if any provisions of this Lease shall to any extent be invalid, the remainder of this Lease shall not be affected
thereby. 

  

	 	B.	There are no oral or written agreements between Landlord and Tenant affecting this Lease. This Lease may be amended only by instruments in writing executed by Landlord and Tenant. 

  
 14 

	 	C.	The titles of the several paragraphs contained herein are for convenience only and shall not be considered in construing this Lease. 

 

	 	D.	Unless the context indicates otherwise, the words “Landlord” and “Tenant” appearing in this Lease shall be construed to
mean those named above and their respective successors and assigns and those claiming through or under them respectively. 

 

	 	E.	Tenant shall have the right to park at the Premises in accordance with the parking rights afforded the Unit pursuant to the Declaration. 

[SIGNATURE PAGE TO FOLLOW] 

  
 15 

 IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above
written. 
  

									
	TENANT:	 		 	 FOUNDATION BARIATRIC HOSPITAL OF SAN

ANTONIO, L.P.

				
		 		 	By:	 	 Foundation Bariatric General, L.L.C., its sole

general partner

					
		 		 		 	By	 	 /s/ Robert M. Byers

		 		 		 		 	Robert M. Byers, Manager
			
	 LANDLORD:
	 		 	 FOUNDATION BARIATRIC REAL ESTATE OF

HUEBNER, L.P., a Texas limited partnership

					
		 		 	By:	 		 	 TYCHE ASSET MANAGERS LLC,
 a Nevada limited
liability company,
 its general partner

					
		 		 	By:	 		 	ARCHIMEDES FINANCIAL LLC,
		 		 		 		 	its manager
					
		 		 	By:	 		 	 /s/ Michael B. Horrell

		 		 		 		 	Michael B. Horrell, Manager

  
 16 

 EXHIBIT A 

LEGAL DESCRIPTION OF PREMISES 
 Unit 301,
Building 3, New City Block 17195, The Villages on Huebner II Office Condominiums, a Condominium Project in the City of San Antonio, Bexar County, Texas as fully described in Condominium Declaration Volume 11250, Page 1744, Official Public Records of
Real Property of Bexar County, Texas, together with an undivided 65.84 percent interest in the common elements. 

 EXHIBIT B 

COMMENCEMENT DATE CERTIFICATE 

This Commencement Date Certificate is made as of this 11th day of October, 2006 between Foundation Bariatric Real Estate of Huebner, L.P.
hereinafter referred to as “Landlord” and Foundation Bariatric Hospital of San Antonio, L.P., hereinafter referred to as “Tenant”. 

WHEREAS, the parties entered into a lease dated 11th day of October, 2006 (the
“Lease”), attached hereto and incorporated by reference, in which Landlord leased to Tenant that certain property to be situated at 9502 Huebner Road, San Antonio, Texas, commonly known as Unit 301 in Building 3 of The Village on Huebner
II Office Condominiums (the “Premises”). 
 WHEREAS, Landlord and Tenant desire to confirm the Commencement Date of the Lease.

 NOW, THEREFORE in consideration of the mutual covenants herein contained and further good and valuable consideration, the parties hereto
incorporate the following into the terms of their existing Lease: 
  

	 	I.	Landlord and Tenant agree that the Commencement Date under the Lease shall be October llth., 2006 and the expiration of the initial term of the Lease shall be
October 10th , 2006, unless earlier terminated, extended or renewed in accordance with the terms of the Lease. 

 

	 	II.	Except for the specific modifications to the Lease contained in this Commencement Date Certificate, all terms of the Lease shall remain unchanged, and are hereby ratified, republished and reaffirmed and are incorporated
into this Agreement. 

 IN WITNESS WHEREOF, Landlord and Tenant have executed this Agreement as of the day and year first
above written. 
  

									
	TENANT:	 		 	LANDLORD:
			
	 FOUNDATION BARIATRIC HOSPITAL

OF SAN ANTONIO, L.P.
	 		 	 FOUNDATION BARIATRIC REAL
 ESTATE OF
HUEBNER, L.P.

					
	By	 	 /s/ Robert M. Byers
	 		 	By	 	 /s/ Illigible

	Name:	 	Robert M. Byers	 		 	Name	 	  

	Title:	 	Manager of Foundation Bariatric General,	 		 	Title	 	  

		 	L.L.C., its sole general partner	 		 		 	

  
 18EX-10.26

 Exhibit 10.26 

CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM 

Foundation Health Enterprises LLC 

Delaware Limited Liability Company 

(the “Company”) 

Offering of up to 
 $15,960,000

 Class B Units 
 at 

$105,000.00 per Unit 
 Foundation
Health Enterprises, LLC, a Delaware limited liability company (“Company”) is hereby offering (“Offering”) for sale 152 units of its Class B membership interests with a one percent (1%) Class B membership interest
representing one (1) unit (“Unit). 
 The Offering will expire at 5:00 p.m., Central Standard Time, on August 1, 2013, unless
sooner terminated or extended. All subscription amounts will be deposited into a separate, fully insured deposit account at the Company’s bank pending acceptance of the subscriptions. Subscriptions may be accepted by the Company at the
discretion of the Company. Therefore, subscriptions may be accepted from time to time as the Company may determine. Any subscription payment attributable to a subscription that is not accepted by the Company will be returned to the subscriber,
without interest. If the Offering is terminated, all payments for subscriptions will be refunded, without any interest earned thereon. 
 THE UNITS HAVE NOT
BEEN REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR REGISTERED UNDER THE SECURITIES LAWS OF ANY STATE, IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION AS PROVIDED IN
APPLICABLE STATUTES. THE SALE OR OTHER DISPOSITION OF THE UNITS IS RESTRICTED AND THE EFFECTIVENESS OF ANY SUCH SALE OR OTHER DISPOSITION MAY BE CONDITIONED UPON RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS
COUNSEL THAT SUCH SALE OR OTHER DISPOSITION CAN BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND OTHER APPLICABLE STATUTES. THE UNITS HAVE NOT BEEN APPROVED, DISAPPROVED OR RECOMMENDED BY THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THIS MEMORANDUM. ANY REPRESENTATION TO THE
CONTRARY IS UNLAWFUL. 
 March 18, 2013 

 

			
	THIS SUMMARY IS DELIVERED SOLELY TO:
		
	Name:	 	 

 
			
	Control No.:	 	  

 THIS CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM DOES NOT CONSTITUTE AN OFFER OR SOLICITATION TO ANYONE IN ANY
STATE OR IN ANY JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT AUTHORIZED. 
 THIS MEMORANDUM CONSTITUTES AN OFFER ONLY TO THE PERSON WHO HAS
RECEIVED IT FROM THE COMPANY. DELIVERY OF THIS MEMORANDUM, OR ANY OTHER DOCUMENTS OR INFORMATION FURNISHED TO AN OFFEREE TO ANYONE OTHER THAN THE PERSON WHO HAS RECEIVED IT FROM THE COMPANY IS UNAUTHORIZED, AND ANY REPRODUCTION HEREOF, IN WHOLE OR
IN PART, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY IS PROHIBITED. ANY PERSON ACTING CONTRARY TO THE FOREGOING RESTRICTIONS MAY PLACE HIMSELF AND THE COMPANY IN VIOLATION OF FEDERAL AND STATE SECURITIES LAWS. 

THE OFFEREE, BY ACCEPTING DELIVERY OF THIS INVESTMENT MEMORANDUM, AGREES TO RETURN IT AND ALL ENCLOSED DOCUMENTS TO THE MANAGER IF THE OFFEREE DOES NOT
UNDERTAKE TO PURCHASE ANY OF THE UNITS OFFERED HEREBY. ANY REPRODUCTION OR DISTRIBUTION OF THIS MEMORANDUM, IN WHOLE OR IN PART, OR THE DIVULGENCE OF ANY OF ITS CONTENTS, EXCEPT TO THE OFFEREE’S REPRESENTATNES OR ADVISORS, WITHOUT THE PRIOR
WRITTEN CONSENT OF THE MANAGER, IS PROHIBITED. 
 NO PERSON HAS BEEN AUTHORIZED TO FURNISH ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS WITH RESPECT TO OR
IN CONNECTION WITH THE OFFERING OF UNITS OTHER THAN THOSE CONTAINED IN THIS MEMORANDUM (INCLUDING THE EXHIBITS HERETO) OR OTHER INFORMATION WHICH IS FURNISHED BY THE COMPANY UPON REQUEST AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR
REPRESENTATION MAY NOT BE RELIED UPON BY ANY OFFEREE AS HAVING BEEN AUTHORIZED BY THE MANAGER OR BY THE COMPANY. 
 NO OFFERING LITERATURE OR ADVERTISING IN
ANY FORM WILL BE EMPLOYED IN THE OFFERING OF UNITS OTHER THAN THIS MEMORANDUM AND THE DOCUMENTS INCLUDED HEREWITH AND REFERRED TO HEREIN. ANY INFORMATION OR REPRESENTATIONS OTHER THAN THOSE CONTAINED HEREIN OR INFORMATION THAT IS FURNISHED BY THE
COMPANY UPON REQUEST SHOULD NOT BE RELIED UPON. NEITHER THE DELIVERY OF THIS MEMORANDUM NOR THE ACCEPTANCE OF ANY SUBSCRIPTION HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OR PROSPECTS
OF THE COMPANY SINCE THE DATES AT WHICH INFORMATION IS GIVEN HEREIN OR THE DATE HEREOF. 
 THIS MEMORANDUM REPLACES AND SUPERSEDES ANY AND ALL INFORMATION
AND MATERIALS RELATING TO THE UNITS WHICH THE MANAGER MAY HAVE FURNISHED TO ANY OFFEREE PRIOR TO THE DATE OF THIS MEMORANDUM. EACH OFFEREE MUST RELY EXCLUSIVELY ON THE INFORMATION CONTAINED OR REFERRED TO IN THIS MEMORANDUM OR FURNISHED BY THE
COMPANY UPON REQUEST IN DECIDING WHETHER TO PURCHASE ANY UNITS. 

  
 i 

 THE COMPANY WILL ANSWER ALL INQUIRIES FROM OFFEREES AND/OR THEIR ADVISORS CONCERNING THE UNITS, COMPANY AND ANY
OTHER MATTERS RELATING TO COMPANY AND THE OFFERING AND SALE OF THE UNITS AND WILL AFFORD OFFEREES AND/OR THEIR ADVISORS THE OPPORTUNITY TO OBTAIN ANY ADDITIONAL INFORMATION, TO THE EXTENT THAT THE COMPANY OR THE MANAGER POSSESS SUCH INFORMATION OR
CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE. 
 THE TAX IMPLICATIONS AND CONSEQUENCES WILL NOT BE THE SAME FOR ALL INVESTORS, AND ARE A MATERIAL
FACTOR WHICH SHOULD BE CONSIDERED BY EVERY OFFEREE. SEE “SUMMARY RISK FACTORS.” PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THE CONTENTS OF THIS MEMORANDUM AS LEGAL, TAX OR BUSINESS ADVICE. EACH INVESTOR IS ADVISED TO CONSULT WITH THE
OFFEREE’S FINANCIAL ADVISOR, LEGAL COUNSEL AND ACCOUNTANT AS TO ANY LEGAL OR RELATED MATTERS CONCERNING AN INVESTMENT IN THE UNITS. 
 THERE IS NO
PUBLIC OR PRIVATE MARKET FOR THE UNITS OFFERED HEREBY, NOR IS IT EXPECTED THAT ANY SUCH MARKET WILL DEVELOP. A PURCHASER OF UNITS IS REQUIRED TO RETAIN OWNERSHIP AND BEAR THE ECONOMIC RISK OF THE INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. 

THE UNITS ARE OFFERED ONLY TO OFFEREES WHO ARE ACCREDITED INVESTORS AND UP TO 35 NON-ACCREDITED INVESTORS UNDER THE FEDERAL SECURITIES LAWS AND WHO INTEND TO
ACQUIRE THEIR UNITS FOR· INVESTMENT PURPOSES, WITHOUT ANY VIEW TO THE DISTRIBUTION OR RESALE OF THE UNITS. NO SUBSCRIPTION TO PURCHASE UNITS WILL BE ACCEPTED WITHOUT THE APPROVAL OF THE MANAGER, WHICH HAS THE ABSOLUTE RIGHT TO REFUSE TO
ACCEPT ANY SUBSCRIPTION. 
 OWNERSHIP OF UNITS OF THE COMPANY INVOLVES A HIGH DEGREE OF RISK AND IS NOT RECOMMENDED FOR ANY INVESTOR WHO DOES NOT HAVE A
SUBSTANTIAL NET WORTH, WHO IS NOT IN A HIGH FEDERAL INCOME TAX BRACKET, AND WHO CANNOT AFFORD A TOTAL LOSS OF THE PROSPECTIVE INVESTOR’S INVESTMENT. 

THIS MEMORANDUM IS SUBMITTED IN CONNECTION WITH THE PRIVATE PLACEMENT OF THESE UNITS AND MAY NOT BE REPRODUCED OR USED FOR ANY OTHER PURPOSE. 

PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THE CONTENTS OF THIS MEMORANDUM OR ANY PRIOR OR SUBSEQUENT COMMUNICATION FROM THE COMPANY, THEIR AFFILIATES, OR ANY
PROFESSIONAL ASSOCIATED WITH THIS OFFERING, AS LEGAL, TAX OR INVESTMENT ADVICE. EACH INVESTOR SHOULD CONSULT WITH AND RELY ON HIS OWN PERSONAL COUNSEL, ACCOUNTANT AND OTHER ADVISORS AS TO LEGAL, TAX AND ECONOMIC IMPLICATIONS OF THE INVESTMENT
DESCRIBED HEREIN AND ITS SUITABILITY FOR THE INVESTOR. 

  
 ii 

 FORWARD-LOOKING STATEMENTS 

This Memorandum and the Exhibits attached hereto, including any financial information (“Financial Information”), contain statements that should be
deemed “forward-looking.” These forward-looking statements are based on certain assumptions and facts and are subject to many conditions and expectations. All forward-looking statements involve estimates by the Company and are subject to
various risks and uncertainties that may be beyond the Company’s control and may cause results to differ from the Company’s current expectations. Although the Company believes that the expectations reflected in such forward-looking
statements are reasonable based upon currently available information, it can give no assurance that such expectations will ultimately prove to be correct. You should read this Memorandum completely and with the understanding that the Company’s
actual results and performance may differ materially from the forward-looking statements and from future results or performance expressed or implied by such forward-looking statements. Except as required by law, the Company undertakes no duty to
update these forward-looking statements, even though the Company’s situation may change in the future. The Company qualifies all of its forward-looking statements by these cautionary statements. 

ADDITIONAL NOTICES TO INVESTORS 
 This
offering is made to a limited number of potential investors. The Units offered hereby have not been registered under the Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and are being offered and sold in
reliance on the exemption from the registration requirements provided by section 4(2) of the 1933 Act and the regulations promulgated thereunder and analogous provisions of certain state laws. The Units are subject to restrictions on transferability
and resale, and may not be transferred or resold except as permitted under the 1933 Act and applicable state securities laws, and pursuant to the terms of the Company’s Operating Agreement and the Subscription Agreement. Purchasers of the Units
will be required to represent to the Company that the Units are being acquired for investment only. 
 SUMMARY RISK FACTORS 

Investing in the healthcare industry involves certain risks. A variety of factors can have a material adverse effect on the expected cash flows, net income,
value of the underlying businesses and other matters described in the Financial Information, including many factors over which the Company will have no control. Such factors and risks are not described herein, and the investors are expected to
perform such due diligence as they deem necessary to evaluate an investment in the healthcare industry. 
 CERTAIN TRANSACTIONS 

FHE Manager, LLC, a Delaware limited liability company, is the manager of the Company (the “Manager”), and the Manager’s principals, have
engaged in, and may be expected to further engage in, certain transactions with the entities in which the Company holds an interest in the real estate, operations and equipment of some of the entities and may receive fees or other forms of
compensation in connection with such transactions. The Manager is an affiliate of the Class A Member of the Company. While the Manager and its principals believe the fees and other compensation received in connection with these transactions is
reasonable, such fees and other compensation are not negotiated on an arm’s length basis. 

  
 iii 

 ADDITIONAL INFORMATION 

This Memorandum and the Exhibits attached hereto do not contain all of the information that an investor would consider materially important in making an
investment decision in the Company. It is expected that persons investing in this Offering will conduct their own review of the health care industry in general and the medical facilities/surgical center sector in specific prior to making an
investment in the Company. Persons properly receiving this Memorandum are encouraged to ask any questions and review any documents, or to have their investment, tax or legal counsel do so on their behalf, prior to making an investment in the
Company. For additional information concerning this Offering, the Company or Graymark, please contact Mr. Michael Horrell, one of the managers of the Manager, at 401 S. LaSalle, Suite 203, Chicago, IL 60605, or Mr. Stanton Nelson the Chief
Executive Officer of Graymark at 204 N. Robinson, Floor 4, Oklahoma City, OK 73102. You may telephone Mr. Horrell at 847-867-0764 or Mr. Nelson at 405-601-5390. 

Investors in this Offering will be required to represent that: (i) they (or their investment representative) are knowledgeable in making
investments of this type; (ii) they have conducted their own investigation and have received answers to all questions asked by them of the Company; (iii) acknowledge that this Memorandum does not contain all of the information a reasonable
investor would consider as material to an investment decision in the Company; and (iv) they are not relying upon the Memorandum for all material information concerning an investment in the Company. 

Additionally, the limited information about the business and financial results of the Company’s expected investments has been provided to it by third
parties and has not been independently verified by the Company. While the Company has no reason to believe such information is not materially accurate or complete, no representation or warranty in this regard is being made herein by the Company.

 Circular 230 Notice. The following notice is based upon U.S. Treasury Regulations governing practice before the Internal Revenue Service:
(1) any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding U.S. federal tax penalties that may be imposed on the taxpayer; (2) any such advice is
written to support the promotion or marketing of the transactions described herein; and (3) each taxpayer should seek advice based an such taxpayer’s particular circumstances from an independent tax advisor. 

  
 iv 

 TABLE OF CONTENTS 

 
  

					
	 	  	Page	 
		
	 SUMMARY OF THE OFFERING
	  	 	1	  
		
	 The Company
	  	 	1	  
		
	 The Offering
	  	 	1	  
		
	 The Company’s Business
	  	 	2	  
		
	 Source and Estimated Use of Funds
	  	 	2	  
		
	 Summary of Key Terms of Preferred Equity Position in TSH
	  	 	2	  
		
	 SOURCE AND ESTIMATED USE OF PROCEEDS
	  	 	3	  
		
	 Anticipated Current Ownership of the Company
	  	 	4	  
		
	 The Manager
	  	 	4	  
		
	 Profit and Loss Participation
	  	 	4	  
		
	 Distributions
	  	 	4	  
		
	 Minimum Investment
	  	 	4	  
		
	 Investors
	  	 	4	  
		
	 RISK FACTORS
	  	 	5	  
		
	 Certain Transactions and Potential Conflicts of Interest
	  	 	7	  
		
	 Assignment
	  	 	8	  
		
	 BACKGROUND INFORMATION ON FHA, FSA AND FSHA
	  	 	9	  
		
	 FHA
	  	 	9	  
		
	 FSA
	  	 	9	  
		
	 FSHA
	  	 	9	  
		
	 INFORMATION ON GRAYMARK
	  	 	9	  
		
	 FHA AND GRAYMARK MERGER
	  	 	10	  

  
 i 

 EXHIBITS 
  

	A.	Operating Agreement of Foundation Health Enterprises, LLC 

  

	B.	Organization Chart of Foundation Healthcare Affiliates, LLC and Related Entities – Pre Merger 

  

	C.	Organization Chart of Foundation Healthcare Affiliates, LLC and Related Entities – Post Merger 

  

	D.	Operating Agreement of TSH Acquisition, LLC 

  

	E.	FSA and FSHA Financial Information 

  

	F.	Graymark Business 

  

	G.	Graymark Financial Information 

  

	H.	Subscription Materials 

  
 ii 

 SUMMARY OF THE OFFERING 

This is a summary of the principal terms under which Class B Units shall be offered. This Summary and the entire Memorandum is qualified in its entirety by
the information and terms contained in the Company’s Operating Agreement (the “Operating Agreement”) a copy of which is attached as Exhibit A hereto. Investors are encouraged to carefully review the Operating Agreement, which contains
all of the designations, terms, conditions, rights and privileges of the Class B Units of the Company, including rights and obligations relating to management, fees, distributions, indemnification, and other matters. The Operating Agreement is
incorporated herein in its entirety by reference and shall be controlling over anything contained in this Summary and Memorandum in the event of any conflict between the actual terms of the Operating Agreement and anything to the contrary contained
herein. 
 The Company: Foundation Health Enterprises, LLC (the “Company”) is a newly formed Delaware limited liability company. 

The Offering: This Confidential Private Placement Memorandum (the “Memorandum”) pertains to an offering to Accredited Investors and up to 35
Non-Accredited Investors, as defined in Rule 506 of Regulation D of the Securities Act of 1933 (the “Act”), of up to $15,960,000 Class B membership interests with a one percent (1%) Class B membership interest representing one unit
(“Unit”) in the Company at $105,000 per Unit (“Offering”) (being $15,200,000 plus 5% Syndication Fee). The Offering is being made on a best-efforts basis and will be closed on a rolling basis as subscriptions are received and
accepted by the Company generally as the Company is able to close on the purchase of the preferred membership interest in TSH Acquisition, LLC, a Delaware limited liability company (“TSH Preferred”) as further described herein. The Company
may reject any subscription and may terminate the Offering at any time. Amounts received will be held in escrow pending issuance of the Units to the subscriber. Prior to the issuance of the Units to the subscriber, the Company may reject and return
to such subscriber any subscription in full (without any interest thereon) that was accepted in contemplation of a purchase of the TSH Preferred that did not close. In such event, all amounts held in escrow will be returned to subscribers. The
amounts received will be held in escrow until the closing of the FHA and Graymark merger described herein. 
 Each Unit consists of (a) One Class B
Unit in the Company, and (b) as an additional incentive to make the investment, each Unit will also receive 10,000 restricted shares of the common stock of Graymark Healthcare, Inc., an Oklahoma corporation, the Company’s Class A
Member (“Graymark” or the “Class A Member”) (i.e. one share of restricted common stock of Graymark for every $10.00 invested in the Units, net of the 5% Syndication Fee). 

(a) Class B Units in the Company. The Class B Units in the Company are non-voting (except as otherwise provided in the Operating
Agreement or as the Delaware Limited Liability Company Act requires.) The Class B Units will provide for a cumulative preferred return of 9% per annum on any unreturned capital contribution and will be redeemed by the Company in four
(4) annual installments commencing at the end of the twelfth (12th) month after the close of the Offering and on each anniversary date thereafter, the first three (3) installments
of which shall be in the amount of $10,000 each (being 10% of the initial capital contribution of $100,000, net of Syndication Fee) and the fourth (4th) installment shall be in the full amount of the balance of any unreturned capital
contribution remaining plus the amount of any undistributed preferred distributions allocable to such Class B Unit. The Class B Units will not participate in or be allocated any income or gain of the Company over and above the preferred return and
redemption rights described herein. 

  
 1 

 In addition, the Class B Units are convertible at the election of the holder thereof at any time
prior to the complete redemption thereof into restricted shares of the common stock of Graymark with respect to the balance of any unreturned capital contribution remaining plus the amount of any undistributed preferred distributions allocable
thereto at such time at the conversion price of $2.00 per share. Graymark common stock issued upon conversion will not be registered and will be restricted shares. 

The Class B Units will not be certificated. 

(b) Common Stock of Graymark Healthcare, Inc. The common stock of Graymark is publicly held. Shares of Graymark common stock issued to
Class B Unit holders will not be registered and will be restricted shares. The financial information of Graymark for the year ended 2011 and for the interim period ended September 30, 2012 are attached hereto as Exhibit G. Further information,
including links to Graymark’s SEC filings may be found online at http://investor.graymarkhealthcare.com/phoenix.zhtml?c=187463&p=irol-irhome 

The Company’s Business: The Company intends to purchase the TSH Preferred in TSH Acquisition, LLC (“TSH”). TSH’s business is
investments in two (2) subsidiaries of Foundation HealthCare Affiliates, LLC, an Oklahoma limited liability company (“FHA”) consisting specifically of 100% of the membership interests in Foundation Surgery Affiliates, L.L.C., a Nevada
limited liability company (“FSA”), and Foundation Surgical Hospital Affiliates, L.L.C., a Nevada limited liability company (“FSHA”). 

The purchase by the Company of the TSH Preferred is as described in the TSH Operating Agreement. The TSH Operating Agreement is attached hereto as Exhibit D.

 Source and Estimated Use of Funds: As shown below, of the total of up to $15,960,000 ($105,000 per Unit) of Investor Contributions to the Company,
it is estimated that up to $15,200,000 ($100,000 per Unit) will be used to purchase the TSH Preferred and up to $760,000 ($5,000 per unit), representing a 5% Syndication Fee, will accrue to the account of or be paid to the Class A Member, which
shall be responsible for all of the expenses of organizing the Company, expenses related to the Offering and expenses incurred in managing the Company, including management fees, if any paid to the Manager. 

Summary of Key Terms of Preferred Equity Position in TSH: 

Pursuant to the TSH Operating Agreement (see Exhibit D) by and among the Company and Graymark, the Company will purchase the TSH Preferred in TSH with the
proceeds of this Offering. 
 Other Provisions: 

The Company will be admitted as a member of TSH, binding TSH and Graymark to the TSH Operating Agreement. 

Additionally, the FHA principals will not agree to any amendments to governing documents of FHA or its subsidiaries that could adversely affect the Company.
There is no agreement in place with the Company and Graymark or the Company and FHA that would limit the right to or prohibit either FHA, Graymark or TSH from issuing additional preferred membership interests in other subsidiaries. 

  
 2 

 SOURCE AND ESTIMATED USE OF PROCEEDS: 

 

					
	 Source
	  			
	 Investor Contributions:
	  	up to $	15,960,000.00	  
	 Estimated Use
	  			
	 Purchase of TSH Preferred:
	  	up to $	15,200,000.00	  
	 Syndicated Fee (Organization/Offering and Managerial Expenses):
	  	up to $	760,000.00	  
		  	  
	  
	 
	 Total:
	  	$	15,960,000.00	  

  
 3 

 Anticipated Current Ownership of the Company: The Class A membership interests of the Company are
owned entirely by Graymark Healthcare, Inc., an Oklahoma corporation (“Graymark” or the “Class A Member”). The Company will be manager managed and the Class A membership interests will be the sole voting class of membership
in the Company and will have the power to elect the manager and control the Company. As stated above, the purchase by the Company of the TSH Preferred will be pursuant to the TSH Operating Agreement. 

The Manager: FHE Manager LLC, a newly formed Delaware limited liability Company and affiliate of the Class A Member will be the manager
(“Manager”) of the Company. The business and affairs of the Company shall be directed, managed and controlled by the Manager. The Class A Member will be responsible for all expenses related to organizing the Company, expenses related
to the Offering and expenses incurred in managing the Company, including any management fee payable to the Manager, which in turn shall be fully responsible for all salaries and other compensation for employees and other agents of the Company, if
any, as may be fixed from time to time by the Manager. The membership interests of FHE Manager, LLC are owned by Graymark. 
 Neither the Class A
Member nor the Manager is in any way responsible or liable for, or has it in any way guaranteed or secured, any of the debts or obligations with respect to payment or performance under the Class B Units. 

Profit and Loss Participation: Profits and losses will be allocated solely to the Class A Member with respect to the Class A membership
interests after payments of the preferred return allocable to and any required redemption of the Class B Units. 
 Distributions: Distributions of
Company net cash flow will be made first to the holders of the Class B Units to the extent of the preferred return allocated to and any required redemption of such Class B Units and then entirely to the Class A Member with respect to the
Class A membership interest. Distributions shall be paid at such times and in such amounts as determined by the Manager in its discretion, except for distributions required to redeem the Class B Units, which shall be made as and when required.
No distribution or return of capital will be made or paid if thereafter the Company would be insolvent or the net assets of the Company would be less than zero. 

Minimum Investment: $105,000 (one Class B Unit) 

Investors: The Class B Units will be offered to certain individuals and entities whose financial sophistication and wherewithal are sufficient to be
deemed “accredited investors” or up to 35 “non-accredited investors” under Regulation D of the Securities Act of 1933. Offerees must be “accredited investors” or up to 35 “non-accredited investors” and meet
other financial qualifications established from time to time by the Manager. 

  
 4 

 RISK FACTORS 

PRIOR TO MAKING AN INVESTMENT DECISION, PROSPECTIVE INVESTORS SHOULD CAREFULLY CONSIDER, ALONG WITH ALL OF THE OTHER INFORMATION CONTAINED IN THIS
CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM, THE FOLLOWING RISK FACTORS ATTENDANT TO THAT INVESTMENT, AND SHOULD CONSULT WITH THEIR OWN LEGAL AND FINANCIAL ADVISORS WITH RESPECT THERETO: 

Risk Factors 
 Investing in privately issued securities is highly
speculative. You should not consider an investment in the Units unless you or your investment advisor/purchaser representative are familiar with the risks associated with this investment and are capable of evaluating the merits of this investment.
Additionally, the financial projections and certain other information contained herein are forward-looking statements and may not be representative of the actual results of an investment in the Units. All financial projections are inherently
speculative. To the extent any of these assumptions prove to be incorrect, the actual financial results of the Company (or of its investments), and the results of investing in the Units are likely to differ materially from the results projected
herein. Investors are encouraged to ask any questions and review any documents, or to have their investment, tax or legal counsel do so on their behalf, prior to making an investment in the Units. 

Risk Associated With Operating History 
 The Company was formed
in 2013 to acquire the TSH Preferred. While the Managers have extensive operating histories, the Company itself has no operating history. 
 Limited
Capitalization; Further Borrowing 
 Although the Company has made a good faith effort to provide for reasonably anticipated problems and expenses in the
development of its investment plan, there remains a risk that occurrences neither foreseen nor foreseeable could seriously increase the Company’s need for capital. There is an assessment provision in the Company’s Operating Agreement to
provide for those eventualities, and the burden of such events would require either additional borrowing by the Company or the raising of additional capital from the members of the Company. While the Managers believe that adequate reserves and
contingency strategies exist, and that this risk is unlikely in the present economy, the Company may not have revenues or borrowings available and therefore may have additional capital required from the Members of the Company. All investments of
this type are to one or another extent speculative and subject to market fluctuation. There is no agreement in place with the Company and Graymark or the Company and FHA that would limit the right to or prohibit either FHA, Graymark or TSH from
issuing additional preferred membership interests in other subsidiaries. 
 Skill of Management 

The success of the Company depends on the skills and abilities of several key principals of the Managers, particularly Stanton Nelson and Michael Horrell. If
these individuals were to cease to be involved with the Company for any reason (including, but not limited to, death or termination of employment), the success of the Company would depend in part on the ability of the Company to engage new people of
at least equivalent skill. There is no assurance that the Company will be able to replace any departed principal of the Managers. 

  
 5 

 Concentration of Control 

Following the completion of this Offering, the Manager will remain in absolute control of the Company. The Manager, by and through their officers and members,
exercise virtually total control over all aspects of the Company’s business operations and procedures. This means that purchasers of the Units will invest subject to the risks associated with not having control of the Company. The Manager of
the Company has complete discretion concerning all aspects of the Company. The Manager will continue to follow accepted business procedures and use its best efforts to implement this business plan. However, the Manager retains discretion to modify
this business plan within broad guidelines should business conditions or opportunities dictate. Further, there is the possibility that unexpected negative events concerning either TSH Preferred, Graymark, Foundation or the economy in general would
alter investment conditions to the extent that additional capital might be required from the members or that to the extent that dilution of existing investors might be required in order to raise necessary capital. While the Manager has the right to
loan additional capital to the Company, the Manager may not be in a position to do so. In such event, there can be no assurance that the current management team would remain in place or that the Company’s business plan would not materially
change as a result of a shift in control. 
 Competition with Other Ventures of the Manager and Its Members 

The Manager and its principals own and/or sponsor other investments and programs. These activities may compete for the time and resources of the Manager’s
personnel. The Company will not have the legal right to compel the Manager’s personnel to allocate their time in the Company’s favor, nor to forego opportunities for the sale of the Company’s interests. 

No Market for Units 
 There is presently no market for the Units
and none is anticipated. There are substantial restrictions upon the sale of Units. The Company’s exit strategy anticipates the eventual ability to sell or exchange the Units, but it may take longer to liquidate or exchange than anticipated.
There can be no absolute assurance of the final liquidation date or exchange date of the Company, nor a particular date upon which investments will be returned. 

Arbitrary Offering Price 
 The offering price of $105,000 per
Unit and the number of Units offered hereby have been determined arbitrarily by the Company. No independent opinion or other appraisal has been obtained in the determination of the value of the Company or offering price. 

Federal Income Tax Risks 
 THE COMPANY HAS NOT OBTAINED A LEGAL
OPINION CONCERNING THE TAX IMPLICATIONS OF AN INVESTMENT IN THE COMPANY. Investors are “accredited” or up to 35 “non accredited” as defined in federal law and are therefore presumed to have access to needed legal and tax advice.
Prospective purchasers of Units must consult their own tax advisors as to their own tax situation prior to investment in the Company. The cost of such consultation could, depending on the amount thereof, materially increase the cost of investment in
the Company and decrease any anticipated yield on the investment. A number of changes in the tax laws have been made and/or are under consideration, and such professional consultation is essential. 

  
 6 

 Risk of Audit 
 The
Company’s federal returns may be audited by the IRS. Such audit may result in the challenge and disallowance of some of the deductions or increase in the taxable income described in such returns. No assurance or warranty of any kind can be made
with respect to the deductibility or taxability of any such items in the event of either an audit or any litigation resulting from an audit. 
 Tax
Classification of the Company 
 The Manager expects the Company to be taxed as a partnership for federal income tax purposes. If the Company were to be
treated for tax purposes as a corporation, the tax benefits associated with an investment in the Company, if any, would not be available to the Members. The Company would, among other things, pay income tax on its earnings in the same manner and at
the same rate as a corporation, and losses, if any, would not be passed through to, and deductible by, the Members. 
 Investing in the Healthcare Industry
Involves Certain Risks 
 A variety of factors can have a material adverse effect on the expected cash flows, net income, value of the underlying businesses
and other matters described in the Financial Information, including many factors over which the Company will have no control. Such factors and risks are not described herein, and investors are expected to perform such due diligence as they deem
necessary to evaluate an investment in the healthcare industry. 
 The return on any investment in the Units ultimately will be dependent on the performance
of the assets and investments that make up the TSH Preferred, which includes investments in preferred interests in FSA, and FSHA, which are two subsidiaries of FHA. 

Investors will have no control over the Company after the Offering. The business and affairs of the Company will be directed, managed and controlled by the
Manager, which will be appointed solely by the Class A Member, which will have voting control. The Class B Units offered in this Offering will have no voting rights and no control of the Company, except as otherwise provided in the
Company’s Articles of Organization, Operating Agreement or as the Delaware Limited Liability Company Act requires. 
 Because there is no market for
the Class B Units, you may not be able to sell your Class B Units or recover any part of your investment, unless the Company is able to redeem and pay for the Class B Units as required by its terms. Also, the transfer and assignment of Class B Units
is restricted as described in “Assignment” below. 
 Certain Transactions and Potential Conflicts of Interest 

Graymark, the Manager, certain officers and directors of Graymark and principals of the Manager, and their affiliates, have engaged in, and may be expected to
further engage in, certain transactions with FHA, FSA, FSHA, TSH, and the manager of these entities (and their affiliates) and may receive fees or other forms of compensation and income in connection with such transactions and interests. While the
Manager and its principals believe the fees and other compensation received in connection with these transactions is reasonable, such fees and other compensation are not negotiated on an arm’s length basis. 

  
 7 

 Certain principals of the Manager are currently invested in, and may in the future invest in, one or more
entities that are affiliated with FHA. The Manager’s principals and some of the Company’s potential investors have an equity interest in the entities that own real property leased by FHA’s operating businesses. The Manager, including
its principals and affiliates, may in the future, but is not obligated to, offer additional investment opportunities to one or more of the Company’s investors (but not necessarily all investors) and to investors, principals, and affiliates of
FHA. 
 Michael B. Horrell is affiliated with Graymark and a principal of the Manager and is also a principal of certain interests in FHA subsidiaries. 

The investors hereby acknowledge and waive any claims in connection with a conflict of interest of the Company, the Manager, FHA, FSA, FSHA, TSH, or any
principals, affiliates or investors of any of the foregoing. 
 Assignment 

Class B Units may not be transferred or assigned without the prior written consent of the Manager and in no event will a transfer or assignment be allowed if
it would result in the Company failing to qualify for an exemption from the registration requirements of the federal or any applicable state securities laws. Similarly, shares of Graymark common stock issued to Class B Unit holders will not be
registered and will be restricted shares. 

  
 8 

 BACKGROUND INFORMATION ON FHA, FSA AND FSHA 

FHA 
 FHA is a physician-centric development and
management company of 15 ambulatory surgery centers and surgical hospitals. Founded by Thomas A. Michaud in 1996, FHA has two wholly-owned subsidiaries dedicated to these surgery centers and hospitals: FSA and FSHA, respectively. (See the corporate
brochure at www.foundationsurgery.com.) The unaudited financial information for FSA and FSHA are shown in Exhibit E for the interim period ended September 30, 2012. The organization chart attached as Exhibit C hereto depicts the organization
after the FHA and Graymark merger. 
 FSA 
 FSA is an
industry-leading ambulatory surgery center (ASC) management and development company focused on partnering with physicians and employees to create an outstanding patient experience while maximizing partner and shareholder value. FSA partners with
physicians through investment in a minority ownership position, usually 10-20 percent, based on physician needs. FSA will manage the ASC for, and with, physicians. FSA will also work with physicians in a joint-venture relationship with local
hospitals or health systems, if such a relationship is in the best interest of the physicians and ASC. FSA believes physician partners are the lifeline of any ASC and they should retain control of the facility — FSA focuses on adding value by
managing the business with physician partners while allowing the partners to focus on patient care. 
 FSA has ownership and management agreements in 11
ASCs. The FSA management team includes CEO Thomas Michaud; EVP/COO Thomas Newman; CFO Bradford Ottwell; and Vice Presidents Margo Carpenter, Randy Reynolds and Rob Andersen. www.foundationsurgery.com 

FSHA 
 FSHA was formed in 2008 from the success of the
FSA. FSHA is a healthcare management and development company that partners with physicians to develop and operate surgical hospitals. FSHA specializes in ASC to surgical hospital conversions; surgical hospital acquisition opportunities; and new
surgical hospital projects. FSHA also focuses on the development and inclusion of ancillary service lines, including hyperbarics, sleep labs, intraoperative monitoring and robotic surgery. FSHA assists facilities in reaching their clinical goals,
improving patient satisfaction and monitoring financial performance — resulting in a fair return for the surgeon and hospital partners. 
 FSHA has
ownership and management agreements in four surgical hospitals and operates three physician-owned hospitals. The FSHA management team includes CEO Thomas Michaud; President Robert Byers; CFO Scott Banks; and COO Mike Schuster.
www.foundationhospitals.com 
 INFORMATION ON GRAYMARK 

As described in the Graymark business description on Exhibit F, attached hereto, Graymark is in the business of providing care management solutions to the
sleep disorder market based on a number of independent sleep care centers and hospital sleep diagnostic programs operated in the United States. Graymark provides a comprehensive diagnosis and care management solution for patients suffering from
sleep disorders. 

  
 9 

 FHA AND GRAYMARK MERGER 

Graymark and FHA are currently in negotiations for a potential merger of their businesses. Graymark, the Class A Member of the Company,
believes the merger should occur by March 29, 2013, or such later date as is necessary related to such transaction. At the closing of the FHA and Graymark merger, as described herein, FHA will own (i) all of the issued and outstanding
membership interests (“FSA Membership Interests”) in FSA, and (ii) all of the issued and outstanding membership interests (“FSHA Membership Interests,”) in FSHA. FHA, TSH and Graymark have entered into that certain Amended
and Restated Membership Interest Purchase Agreement to effect the proposed merger between Foundation and Graymark. At the effective date of the proposed merger TSH will own 100% of the FSA Membership Interests and 100% of the FSHA Membership
Interests. The Company will own the TSH Preferred in TSH. The Class B Members of the Company will own the Class B Units. 
 In addition, the Class B Units
are convertible at the election of the holder thereof at any time prior to the complete redemption thereof into restricted shares of the common stock of Graymark with respect to the balance of any unreturned capital contribution remaining plus the
amount of any undistributed preferred distributions allocable thereto at such time at the conversion price of $2.00 per share. Graymark common stock issued upon conversion will not be registered and will be restricted shares. 

  
 10 

 Exhibit “A” 

Operating Agreement of Foundation Health Enterprises, LLC 

 LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 FOUNDATION HEALTH
ENTERPRISES, LLC 
 THIS AGREEMENT is made as of March 13, 2013, by Graymark Healthcare, Inc., an Oklahoma corporation
(“GRMH”) and the persons or entities set forth on any Joinder hereto for the purpose of setting forth the limited liability company agreement of FOUNDATION HEALTH ENTERPRISES, LLC, a Delaware limited liability company (the
“Company”). 
 For good and valuable consideration, it is agreed as follows: 

Section I. 
 Defined
Terms 
 The following capitalized terms shall have the meanings specified in this section. Other terms are defined throughout this
Agreement. 
 “Act” shall mean the Delaware Limited Liability Company Act, as amended from time to time. 

“Adjusted Capital Account Deficit” shall mean, with respect to any Interest Holder, the deficit balance, if any, in the
Interest Holder’s Capital Account as of the end of the relevant taxable year, after giving effect to the following adjustments: 
  

	 	(i)	the deficit shall be decreased by the amounts that the Interest Holder is deemed obligated to restore pursuant to Regulation Sections 1.704-2(g)(1) and (i)(5) (i.e., the Interest Holder’s share of Minimum
Gain and Member Minimum Gain); and 

  

	 	(ii)	the deficit shall be increased by the items described in Regulation Section 1.704-1 (b) (2) (ii) (d) (4), (5), and (6). 

“Affiliate” shall mean, with respect to any Member, any Person: (i) which owns more than 50% of the voting interests in
the Member; or (ii) in which the Member owns more than 50% of the voting interests; or (iii) in which more than 50% of the voting interests are owned by a Person who has a relationship with the Member described in clause (i) or (ii)
above. 
 “Agreement” shall mean this Agreement, as amended from time to time. 

“Capital Account” shall mean the account maintained by the Company for each Interest Holder.  

“Capital Contribution” shall mean the total amount of cash and the fair market value of any other assets contributed (or
deemed contributed under Regulation Section 1.704-1(b)(2)(iv)(d)) to the Company by a Member, net of liabilities assumed or to which the assets are subject. 

“Class A Member” shall mean Graymark Healthcare, Inc., an Oklahoma corporation, and any Person admitted as a Class A
Member in accordance with the terms hereof. 
 “Class B Members” shall mean each person executing a Member Signature
Page and Joinder of Member to Agreement in substantially the form of Exhibit “B” or any counterpart thereof to Class B Membership Interests and is subsequently admitted as a Class B Member as provided herein. 

 “Class B Redemption” means Class B Member’s right to give notice, which
right can be first exercised beginning on the first day of the First Class B Redemption Option Year, that the Company makes a distribution to the Class B Members, pursuant to Section 4.1A. During the First Class B Redemption Option Year and for
the two years thereafter, the amount of such distribution shall be equal to the greater of ten percent (10%) of (a) a Class B Member’s Capital Contribution with respect to the Preferred Equity, or (b) the sum of a Class B
Member’s Unreturned Capital Contribution and the Unpaid Preference; provided, however, that in no event shall such distribution be greater than the sum a Class B Member’s Unreturned Capital Contribution and the Unpaid
Preference. In the fifth (5th) calendar year after the date hereof, such distribution shall be equal to the sum of the balance of a Class B Member’s Unreturned Capital Contribution and
the Unpaid Preference. Such distribution will be charged to the Class B Member’s Capital Account, as provided in Section 3.5.2. the Class B Member may exercise its Class B Redemption by delivering written notice to the Manager and to the
Company and upon receipt of such notice, the Class B Redemption shall be exercised. 
 “Class B Redemption Obligation”
means the amount the Company is required to distribute to the Class B Members on account of the Class B Member’s election to exercise the Class B Redemption. 

“Class B Unit Conversion to GRMH Common Stock” refers to the option of the Class B Unit Holders, to give notice to the
Company to convert each Unit of Class B Membership Interest to GRMH Common Stock at a conversion rate of $2.00 per share. Upon such conversion of Class B Membership Interest Units to GRMH Common Stock, there will be corresponding reduction of the
Class B Member’s Unreturned Capital Contribution and the Unpaid Preference with respect to the Preferred Equity in the Company using the same conversion rate. At such time as the Unpaid Preference and the Unreturned Capital Contributions with
respect to Preferred Equity in the Company have been reduced to zero, there shall be no further rights of the Class B Unit Holders to convert such Units of Class B Membership Interest to GRMH Common Stock. 

“Code” shall mean the Internal Revenue Code of 1986, as amended, or any corresponding provision of any succeeding law.

 “Common Equity” shall mean the Class A Membership Interests in the Company that do not entitle the owner
to the Preference.  
 “Company” shall mean FOUNDATION HEALTH ENTERPRISES, LLC, the Delaware limited liability
company, organized pursuant to the Certificate of Formation and governed by this Agreement. 
 “Depreciation” shall
mean, for each calendar year, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable for federal income tax purposes with respect to an asset for the calendar year, except that if the adjusted book value of an
asset differs from its adjusted basis for federal income tax purposes at the beginning of the calendar year, then the depreciation, amortization, or cost recovery bears the same ratio to such beginning adjusted book value as federal income tax
depreciation, amortization, or other cost recovery deduction for the calendar year bears to the beginning adjusted tax basis. 

 “Discretionary Distribution” shall have the meaning provided in
Section 4.1B hereof. 
 “Distributable Cash” shall mean the amount of cash that the Manager, in its reasonable
discretion, deems available for distribution to the Interest Holders, taking into account (a) all cash funds derived from operations of the Company (including interest received on reserves), without reduction for any noncash charges, but less
cash funds used to pay current operating expenses and to pay or establish reasonable reserves for future expenses, debt payments, and capital improvements and replacements as determined by the Manager; and (b) any property that the Manager
determines is no longer suitable for use by the Company. At the discretion of the Manager, the amount of Distributable Cash shall be increased by the reduction of any reserve previously established. 

“Economic Interest” shall mean a Person’s share of the Profits and Losses of, and the right to receive distributions
from, the Company. 
 “First Class B Redemption Option Year” means the second calendar year after the date
hereof. 
 “Interest Holder” shall mean any Person who holds an Economic Interest, whether as a Member or as an
unadmitted assignee of a Member. 
 “Involuntary Transfer” shall mean, with respect to any Member, any Transfer that
occurs as a result of any of the following events: 
  

	 	(i)	an assignment for the benefit of creditors; 

  

	 	(ii)	any bankruptcy or insolvency proceeding; 

  

	 	(iii)	any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation; 

 

	 	(iv)	appointment of a trustee for, receiver for, or liquidation of the Member or of all or any substantial part of the Member’s properties; 

 

	 	(v)	if the Member is an individual, the Member’s death or adjudication by a court of competent jurisdiction as incompetent to manage the Member’s person or property; 

 

	 	(vi)	if the Member is acting as a Member by virtue of being a trustee of a trust, the termination of the trust; 

  

	 	(vii)	if the Member is a partnership or limited liability company, the dissolution and commencement of winding up of the partnership or limited liability company; 

 

	 	(viii)	if the Member is a corporation, the filing of a certificate of dissolution of the corporation or the lapse of 90 days after notice to the corporation of the revocation without reinstatement of its charter; or

  

	 	(ix)	if the Member is an estate, the distribution by the fiduciary of the estate’s entire interest in the company. 

 “Manager” shall mean FHE Manager, LLC, a Delaware limited liability company, or
any Manager appointed in accordance with the terms of this Agreement. 
 “Member” shall mean of the Class A
Member, GRMH, and the Class B Members admitted in accordance with the terms hereof. 
 “Member Loan Nonrecourse
Deductions” shall mean any Company deductions that would be Nonrecourse Deductions if they were not attributable to a loan made or guaranteed by a Member within the meaning of Regulation Section 1.704-2(i). 

“Member Minimum Gain” has the meaning set forth in Regulation Section 1.704-2(i) for “partner nonrecourse debt
minimum gain.” 
 “Membership Interest” shall mean all of the rights of a Member in the Company, including a
Member’s: (i) Economic Interest, (ii) right to inspect the Company’s books and records, (iii) right to participate in the management of and vote on matters coming before the Company, and (iv) unless this Agreement or
the Certificate of Formation provide to the contrary, right to act as an agent of the Company. 
 “Membership Interest
Percentage” shall mean the percentage shown for a Class A Common Equity holder on Exhibit A, as updated by the Managers to reflect the transfer or issuance of additional Common Equity pursuant to this Agreement. 

“Minimum Gain” has the meaning set forth in Regulation Section 1.704-2(d) for “partnership minimum gain”.
Minimum Gain shall be computed separately for each Interest Holder in a manner consistent with the Regulations under Code Section 704(b). 

“Negative Capital Account” shall mean a Capital Account with a balance of less than zero. 

“Nonrecourse Deductions” has the meaning set forth in Regulation Section 1.704-2(b)(1). The amount of Nonrecourse
Deductions for a taxable year of the Company shall be determined according to the provisions of Regulation Section 1.704-2(c). 

“Officer” shall mean each Person designated as such pursuant to Section V. 

“Person” whether of not capitalized shall mean an individual, corporation, partnership, association, limited liability
company, trust, estate, or other entity. 
 “Preference” shall mean an amount equal to a non-compounded annual rate
of return of 9% calculated on the average daily balance of the Unreturned Capital Contribution of each Class B Member with respect to the Preferred Equity.  

“Preferred Equity” shall mean Class B Membership Interests in the Company that entitle the owner to the Preference.
 
 “Principal” shall mean any person actively serving as an executive officer of a company and devoting
substantially all of his or her business time to the operations of the Company and/or its Affiliates. 
 “Profit”
and “Loss” shall mean, for each taxable year of the Company (or other period for which Profit or Loss must be computed), the Company’s taxable income or loss determined in accordance with Code Section 703(a), with the
following adjustments: 

	 	(i)	all items of income, gain, loss, deduction, or credit required to be stated separately pursuant to Code Section 703(a)(1) shall be included in computing taxable income or loss; 

 

	 	(ii)	any tax-exempt income of the Company, not otherwise taken into account in computing Profit or Loss, shall be included in computing taxable income or loss; 

 

	 	(iii)	any expenditures of the Company described in Code Section 705(a)(2) (B) (or treated as such pursuant to Regulation Section 1.704-1(b)(2)(iv)(i)) and not otherwise taken into account in computing Profit or
Loss, shall be subtracted from taxable income or loss; 

  

	 	(iv)	gain or loss resulting from any taxable disposition of Company property shall be computed by reference to the adjusted book value of the property disposed of notwithstanding the fact that the adjusted book value differs
from the adjusted basis of the property for federal income tax purposes; 

  

	 	(v)	in lieu of the depreciation, amortization, or cost recovery deductions allowable in computing taxable income or loss, there shall be taken into account the Depreciation for such taxable year; and 

 

	 	(vi)	notwithstanding any other provision of this definition, any items which are specially allocated pursuant to Section 4.3 hereof shall not be taken into account in computing Profit or Loss. 

“Regulation” shall mean the income tax regulations, including any temporary or proposed regulations, from time to time
promulgated under the Code. 
 “Secretary” shall mean the Secretary of State of Delaware. 

“Special Distributions” shall mean those distributions made pursuant to Section 4.1A hereof. 

“Transfer” shall include any and all means by which a Member or Interest Holder may be divested of a Membership Interest or
Economic Interest in the Company, including divestment by sale, merger, exchange, gift, assignment, operation of law, pledge, hypothecation, or otherwise. 

“Unpaid Preference” shall mean an amount equal to the cumulative Preference accrued with respect to a Class B Member on the
date of a distribution less any distributions that have been made to the Class B Members under Section 4.1.1 or 4.1.A.1 or (in the event the Class B Redemption Obligation is determined by reference to clause (b) of the definition of Class
B Redemption) the amount distributed pursuant to Section 4.1.A.2 with respect to the Unpaid Preference. 
 “Unreturned
Capital Contribution” shall mean an amount equal to the total Capital Contributions made by a Class B Member with respect to the Preferred Equity less any amount of distributions of Distributable Cash, Discretionary Distributions, or
Special Distributions at any time in excess of the Unpaid Preference. 
 “Voluntary Transfer” shall mean any
Transfer other than an Involuntary Transfer. 

 Section II. 

Formation and Name; Office; Purpose; Term 

2.1. Purpose. The Company is organized to hold membership interests and other equity interests in limited liability companies
and other entities owning, holding and operating surgery centers and surgical hospitals and will engage in any lawful act or activity related thereto in which limited liability companies organized under the Act may engage. 

2.2. Term. The term of existence of the Company shall be perpetual, unless terminated pursuant to Section VII of this Agreement.

 2.3. Principal Office. The principal office and place of business of the Company in the State of Oklahoma shall be
located at 204 N. Robinson, Floor 4, Oklahoma City, OK 73102, or at any other place determined by the Company’s Manager. 

2.4. The Company was organized on March 13, 2013, and has had one member, GRMH, and has not filed any income tax returns and has
existed as a disregarded entity as provided in Regulation §301.7701-3. Exhibit C is a complete list of the Membership Interests held by the Company as it may be amended from time to time, and the Member(s)’s adjusted basis of
each interests and the fair market value of each interests. 
 2.5. Class A Member. Graymark Healthcare, Inc., an
Oklahoma corporation, is the initial Class A Member and shall have and possess all the rights, duties and obligations of such Class A Member as set forth in this Agreement. 

2.6. Class B Members. Each person executing a Member Signature Page and Joinder of Member to Agreement in substantially the form of
Exhibit “B” or any counterpart thereof to Class B Membership Interests and is subsequently admitted as a Class B Member as provided herein. 

Section III. 
 Members;
Capital; Capital Accounts 
 3.1. Capital Contributions. The Class B Members will contribute in cash to the Company the
amounts set forth on Exhibit “A” and will have credited to the Class B Members’ Capital Account an amount equal to the contribution as provided in Section 3.5.1. GRMH will be deemed to contribute all of the Company’s assets
as of the date hereof and prior to the Class B Member’s contribution and, as provided in Section 3.5.1, will receive a capital account equal to the fair market value of such assets equal to the fair market value shown on Exhibit
B. 
 3.2. No Interest on Capital Contributions. Interest Holders shall not be paid interest on their Capital
Contributions. 
 3.3. Return of Capital Contributions. Except as otherwise provided in this Agreement, no Interest Holder
shall have the right to receive the return of any Capital Contribution. 

 3.4. Form of Return of Capital. If an Interest Holder is entitled to receive a
return of a Capital Contribution, the Company may distribute cash, notes, property, or a combination thereof to the Interest Holder in return of the Capital Contribution. 

3.5. Capital Accounts. A separate Capital Account shall be maintained for each Interest Holder as follows. 

3.5.1. An Interest Holder’s Capital Account shall be credited with the Interest Holder’s Capital Contributions, the
amount of any Company liabilities assumed by the Interest Holder (or which are secured by Company property distributed to the Interest Holder), the Interest Holder’s allocable share of Profit, and any item in the nature of income or gain
specially allocated to such Interest Holder pursuant to the provisions of Section IV (other than Section 4.3.3); and 

3.5.2. An Interest Holder’s Capital Account shall be debited with the amount of money and the fair market value of any
Company property distributed to the Interest Holder, the Interest Holder’s allocable share of Loss, and any item in the nature of expenses or losses specially allocated to the Interest Holder pursuant to the provisions of Section IV (other than
Section 4.3.3.). 
 3.5.3. If any Economic Interest is transferred pursuant to the terms of this Agreement, the
transferee shall succeed to the Capital Account of the transferor to the extent the Capital Account is attributable to the transferred Economic Interest. If the adjusted book value of Company property is adjusted pursuant to this Agreement, the
Capital Account of each Interest Holder shall be adjusted to reflect the aggregate adjustment in the same manner as if the Company had recognized gain or loss equal to the amount of such aggregate adjustment. It is intended that the Capital Accounts
of all Interest Holders shall be maintained in compliance with the provisions of the Regulations issued under Code Section 704, including Regulation Section 1.704-1(b), and all provisions of this Agreement relating to the maintenance of
Capital Accounts shall be interpreted and applied in a manner consistent with that Regulation. 
 3.6. Loans. Any Member may,
at any time, make or cause a loan to be made to the Company in any amount and on those terms upon which the Manager and the Member agree. 

3.7. Preferred Equity. Notwithstanding any other provision of this Agreement, at such time as the Unpaid Preference and the
Unreturned Capital Contributions with respect to Preferred Equity have been reduced to zero, such Preferred Equity shall be deemed cancelled and redeemed by the Company and the owners of such Preferred Equity shall have no further rights with
respect to such Preferred Equity. At that time, the Common Equity holders shall be the only members of the Company. 
 3.8.
Manager May Revise Exhibit A. Notwithstanding anything else to the contrary, the Manager may (i) update and revise Exhibit A from time to time so that Exhibit A correctly states the Members of the Company, the Capital
Contributions of such Members, and the Membership Interest of such Members, and (ii) attach any such updated Exhibit A to this Agreement as a replacement for the Exhibit A previously attached hereto. 

 Section IV. 

Profit, Loss, and Distributions 

4.1. Distributions of Distributable Cash. Subject to applicable law and any limitations contained elsewhere in this Agreement, in any
calendar year, the Manager shall direct the Company to distribute any Distributable Cash to the Interest Holders, which distributions shall be made to the Interest Holders as follows: 

4.1.1. First, to the Class B Members in an amount equal to their Unpaid Preference; 

4.1.2. Then, to the holders of Common Equity in accordance with their respective Membership Interest Percentages. 

4.1A Special Distribution. In a calendar year in which a Class B Member exercises its Class B Redemption, distributions of
Distributable Cash that are made after the exercise of the Class B Redemption shall be made as follows: 
 4.1A.1 First to the Class
B Member in an amount equal to its Unpaid Preference; 
 4.1A.2 Second, to the Class B Member in an amount equal to the unpaid Class B
Redemption Obligation; and 
 4.1A.3 Thereafter, to the holders of Common Equity in accordance with their respective Membership Interest
Percentages. 
 If the Manager determines that the unpaid Class B Redemption Obligation cannot be satisfied during the taxable year without
additional capital or the Manager determines that there is not sufficient Distributable Cash to fully satisfy the unpaid Class B Redemption Obligation, the Manager will direct GRMH to, and GRMH will promptly, recontribute any distributions received
by GRMH pursuant to this Article IV after the date hereof to the extent necessary to satisfy the unpaid Class B Redemption Obligation. It is expected that the Manager will operate the Company in a manner recognizing the Class B Redemption
Obligation, including imposing reasonable restrictions on the Company’s capital and non capital expenditures to allow the satisfaction of the Class B Redemption Obligation. 

4.2. Profit and Loss Allocations. Except as expressly provided to the contrary in this Section 4.2, after giving effect to
the special allocations set forth in Section 4.3, for any taxable year of the Company, Profit or Loss shall be allocated to the Interest Holders in proportion to their Membership Interest Percentages. 

4.3. Regulatory Allocations. 

4.3.1. Qualified Income Offset. No Interest Holder shall be allocated Losses or deductions to the extent the allocation
would, as of the end of the taxable year, create or increase an Adjusted Capital Account Deficit. If an Interest Holder receives (1) an allocation of Loss or deduction (or item thereof), or (2) any distribution which causes

 
the Interest Holder to have or increase an Adjusted Capital Account Deficit at the end of any taxable year, then all items of income and gain of the Company (consisting of a pro rata portion of
each item of Company income, including gross income and gain) for that taxable year shall be allocated to that Interest Holder before any other allocation is made of Company items for that taxable year, in the amount and in proportions required to
eliminate the excess as quickly as possible. This Section 4.3.1 is intended to comply with, and shall be interpreted consistently with, the “qualified income offset” provisions of the Regulations promulgated under Code
Section 704(b). 
 4.3.2. Minimum Gain Chargeback. Except as set forth in Regulation Section 1.704-2(f)(2),
(3), and (4), if, during any taxable year, there is a net decrease in Minimum Gain or Member Minimum Gain, each Interest Holder, prior to any other allocation pursuant to this Section IV, shall be specially allocated items of gross income and gain
for such taxable year (and, if necessary, subsequent taxable years) in an amount equal to that Interest Holder’s share of the net decrease of Minimum Gain or Member Minimum Gain. Allocations of gross income and gain pursuant to this
Section 4.3.2 shall be made first from gain recognized from the disposition of Company assets subject to nonrecourse liabilities (within the meaning of the Regulations promulgated under Code Section 752), to the extent of the Minimum Gain
or Member Minimum Gain attributable to those assets, and thereafter, from a pro rata portion of the Company’s other items of income and gain for the taxable year. It is the intent of the parties hereto that any allocation pursuant to this
Section 4.3.2 shall constitute a “minimum gain chargeback” under Regulation Sections 1.704-2(f) or 1.704-2(i)(4) and that this section be interpreted consistently therewith. 

4.3.3. Contributed Property and Book-Ups. In accordance with Code Section 704(c) and the Regulations thereunder, as
well as Regulation Section 1.704-1(b)(2)(iv)(d)(3), income, gain, loss, and deduction with respect to any property contributed (or deemed contributed) to the Company shall, solely for tax purposes, be allocated among the Interest Holders so as
to take account of any variation between the adjusted basis of the property to the Company for federal income tax purposes and its fair market value at the date of contribution (or deemed contribution). Unless the Manager elects otherwise, if the
adjusted book value of any Company asset is adjusted as provided herein, subsequent allocations of income, gain, loss, and deduction with respect to the asset shall take account of any variation between the adjusted basis of the asset for federal
income tax purposes and its adjusted book value in the manner required under Code Section 704(c) using the “traditional method” described in the Regulations thereunder. 

4.3.4. Code Section 754 Adjustment. To the extent an adjustment to the tax basis of any Company asset pursuant to
Code Section 734(b) or Code Section 743(b) is required, pursuant to Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of the adjustment to the Capital Accounts shall be
treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases basis), and the gain or loss shall be specially allocated to the Interest Holders in a manner consistent with the manner in which
their Capital Accounts are required to be adjusted pursuant to that Section of the Regulations. 

 4.3.5. Nonrecourse Deductions. Nonrecourse Deductions for a taxable year
or other period shall be specially allocated to the holders of Common Equity in accordance with their respective Membership Interest Percentages. 

4.3.6. Member Loan Nonrecourse Deductions. Any Member Loan Nonrecourse Deduction for any taxable year or other
period shall be specially allocated to the Interest Holder who bears the risk of loss with respect to the loan to which the Member Loan Nonrecourse Deduction is attributable in accordance with Regulation Section 1.704-2. 

4.3.7. Guaranteed Payments. Any distributions with respect to the Preference are intended to be guaranteed
payment under Code Section 707(c) paid to recipient other than in its capacity as a Member within the meaning of Code Section 707(a) and the partnership expense arising from such guaranteed payment shall be allocated to the Common Equity
holders based on their Membership Interest Percentages. To the extent any such distributions with respect to the Preference, any compensation paid to any Member by the Company, including any fees payable to any Member pursuant to Section 5.3
hereof, or the payment to a Class B Member made pursuant to Section 4.6, is determined by the Internal Revenue Service not to be a guaranteed payment under Code Section 707(c) or is not paid to the Member other than in the Person’s
capacity as a Member within the meaning of Code Section 707(a), the Member shall be specially allocated gross income of the Company in an amount equal to the amount of that payment, and the Member’s Capital Account shall be adjusted to
reflect the payment. 
 4.3.8. Unrealized Receivables. If an Interest Holder’s Interest is reduced
(provided the reduction does not result in a complete termination of the Interest Holder’s Interest), the Interest Holder’s share of the Company’s “unrealized receivables” and “substantially appreciated inventory”
(within the meaning of Code Section 751) shall not be reduced, so that, notwithstanding any other provision of this Agreement to the contrary, that portion of the Profit otherwise allocable upon a liquidation or dissolution of the Company
pursuant to Section 4.4 hereof which is taxable as ordinary income (recaptured) for federal income tax purposes shall, to the extent possible without increasing the total gain to the Company or to any Interest Holder, be specially allocated
among the Interest Holders in proportion to the deductions (or basis reductions treated as deductions) giving rise to such recapture. 

4.3.9. Withholding. All amounts required to be withheld pursuant to Code Section 1446 or any other provision
of federal, state, or local tax law shall be treated as amounts actually distributed to the affected Interest Holders for all purposes under this Agreement. 

4.4. Liquidation and Dissolution. 

4.4.1. If the Company is liquidated, the assets of the Company shall be distributed to the Interest Holders in accordance with
the following: 

 (i) First to Class B Members in an amount equal to the Unpaid Capital Contribution and Unpaid
Preference as of the date of the distribution; 
 (ii) Then, the balance to the holders of Common Equity in accordance with their respective
Membership Interest Percentages. 
 4.4.2. No Interest Holder shall be obligated to restore a Negative Capital Account. 

4.5. General. 

4.5.1. If any assets of the Company are distributed in kind to the Interest Holders, those assets shall be valued on the basis
of their fair market value, and any Interest Holder entitled to any interest in those assets shall receive that interest as a tenant-in-common with all other Interest Holders so entitled. Unless the Members (including the Class B Members) otherwise
agree, the fair market value of the assets shall be determined by an independent appraiser who shall be selected by the Members with the consent of the Class B Members. The Profit or Loss for each undistributed asset shall be determined as if the
asset had been sold at its fair market value, and the Profit or Loss shall be allocated as provided in Section 4.2 and shall be properly credited or charged to the Capital Accounts of the Interest Holders prior to the distribution of the assets
in liquidation pursuant to Section 4.4. 
 4.5.2. All Profit and Loss shall be allocated, and all distributions shall be
made, to the Persons shown on the records of the Company to have been Interest Holders as of the last day of the taxable year for which the allocation or distribution is to be made. All distributions shall be made to the Persons shown on the records
of the company to have been Interest Holders as of the date the distribution is to be made. Notwithstanding the foregoing, unless the Company’s taxable year is separated into segments, if there is a Transfer during the taxable year, the Profit
or Loss shall be allocated between the original Interest Holder and the successor on the basis of the number of days each was an Interest Holder during the taxable year; provided, however, the Company’s taxable year shall be segregated into two
or more segments in order to account for Profit, Loss, or proceeds attributable to any extraordinary nonrecurring items of the Company. 

4.5.3. The Manager is authorized, upon the advice of the Company’s tax counsel, to amend this Section IV to comply with
the Code and the Regulations promulgated under Code Section 704(b); provided, however, that no amendment shall materially affect distributions to an Interest Holder without the Interest Holder’s prior written consent. 

4.6. Clawback. Upon the dissolution of the Company, the Manager shall calculate the amount by which the Class B Member’s Capital
Contributions with respect to the Preferred Equity plus the Preference thereon exceeds all distributions made to the Class B Member on account of the provisions of Section IV. This calculated amount is hereinafter referred to as the
“Clawback Requirement”. GRMH shall contribute to the Company an amount (hereinafter referred to as the “Minimum Distribution”) equal to the lesser of (a) the Clawback Requirement

 
or (b) the aggregate amount of distributions received by GRMH from the Company after the date of this Agreement. The Company, upon receipt of the Minimum Distribution, shall pay an amount
equal to the Minimum Distribution to the Class B Member. The amount distributed to the Class B Member shall be accounted for as a guaranteed payment under Code Section 707(c). The partnership expense arising from such guaranteed payment shall
be allocated to GRMH. 
 Section V. 

Management: Rights, Powers, and Duties 

5.1. Management. 

5.1.1. Manager. The Company shall be managed by one or more Managers, who may, but need not, be Members. The initial Manager is
FHE Manager, LLC, a Delaware limited liability company. 
 5.1.2. General Powers. The Manager shall have full,
exclusive, and complete discretion, power, and authority, subject in all cases to the other provisions of this Agreement and the requirements of applicable law, to manage, control, administer, and operate the business and affairs of the Company and
to make all decisions affecting such business and affairs, including, for Company purposes, the power to: 
 (a) acquire by purchase, lease,
or otherwise, any real or personal property; 
 (b) construct, operate, maintain, finance, and improve, and to own, sell, convey, assign,
mortgage, or lease any real or personal property; 
 (c) enter into agreements and contracts and give receipts, releases, and discharges;

 (d) purchase liability and other insurance to protect the Company’s properties and business; 

(e) borrow money for and on behalf of the Company; 

(f) prepay, in whole or in part, refinance, amend, modify, or extend any mortgages or deeds of trust that may affect any asset of the Company
and in connection therewith to execute for and on behalf of the Company any extensions, renewals, or modifications of such mortgages or deeds of trust; 

(g) execute any and all other instruments and documents that may be necessary or in the opinion of the Managers desirable to carry out the
intent and purpose of this Agreement, including documents whose operation and effect extend beyond the term of the Company; 
 (h) make any
and all expenditures that the Manager, in its sole discretion, deems necessary or appropriate in connection with the management of the affairs of the Company and the carrying out of its obligations and responsibilities under this Agreement,
including all legal, accounting, and other related expenses incurred in connection with the organization and financing and operation of the Company; 

 (i) enter into any kind of activity necessary to, in connection with, or incidental to the
accomplishment of the purposes of the Company; 
 (j) invest and reinvest Company reserves in short- term instruments or money market funds;
and 
 (k) direct the Company to make a loan (with an interest rate equal to the applicable federal rate) to GRMH in an amount equal to the
Capital Contribution made by a Class B Member with respect to the Preferred Equity. 
 5.1.3. Extraordinary
Transactions. Notwithstanding anything to the contrary in this Agreement the Manager shall not undertake any of the following without the approval of the Class A Members: 

(a) the sale, exchange, lease, or other disposition of all or substantially all of the assets of the Company; 

(b) the merger, consolidation, or reorganization of the Company with or into any other Person; 

(c) subject to Section 5.1.4, the amendment or restatement of the Certificate of Formation of the Company or this Agreement; and 

(d) the admission of additional members to the Company. 

5.1.4. [RESERVED] 

5.1.5. Limitation on Authority of Members. 

(a) No Member is an agent of the Company solely by virtue of being a Member, and no Member has authority to act for the Company solely by
virtue of being a Member. 
 (b) Any Member who takes any action or binds the Company in violation of this section shall be solely
responsible for any loss and expense incurred by the Company as a result of the unauthorized action and shall indemnify and hold the Company harmless with respect to the loss or expense. 

5.1.6. Removal of Manager. GRMH at any time and from time to time and for any reason may remove any Manager then acting
and select a new Manager. 
 5.2. Meetings of and Voting by Members. 

 5.2.1. A meeting of the Class A Members may be called at any time by the
Manager or any Class A Member. Meetings of Class A Members shall be held at the Company’s principal place of business or at any other place designated by the Manager. Not less than ten (10) nor more than ninety (90) days
before each meeting, the Manager or the Class A Member calling the meeting shall give written notice of the meeting to each Class A Member. The notice shall state the time, place, and purpose of the meeting. Notwithstanding the foregoing
provisions, each Class A Member waives notice if before or after the meeting the Class A Member signs a waiver of the notice that is filed with the records of Class A Members meetings or is present at the meeting in person or by
proxy. Unless this Agreement provides otherwise, at a meeting of Class A Members, the presence in person or by proxy of GRMH constitutes a quorum. A Class A Member may vote either in person or by written proxy signed by the Class A
Member or by the Class A Member’s duly authorized attorney-in-fact. 
 5.2.2. Except as otherwise provided in this
Agreement, the affirmative vote of the Class A Members whose Membership Interest Percentages total more than fifty percent (50%) shall be required to approve any matter coming before the Class A Members. 

5.2.3. Except as otherwise provided in this Agreement, the Class B Members shall not be entitled to vote. 

5.2.4. In lieu of holding a meeting, the Class A Members may vote or otherwise take action by a written consent stating
the action taken executed by the Class A Members holding a majority or other required amount of Membership Interests then held by Class A Members. 

5.3. Personal Services. 

5.3.1. No Member shall be required to perform services for the Company solely by virtue of being a Member. Unless approved by
the Class A Members, no Member shall be entitled to compensation for services performed for the Company by the Member. However, upon substantiation of the amount and purpose thereof, the Members shall be entitled to reimbursement for expenses
reasonably incurred in connection with the activities of the Company, including but not limited to, reasonable expenses incurred in connection with services provided to the Company by employees of Affiliates. 

5.3.2. Unless approved by Class A Members whose Membership Interest Percentages total more than fifty percent (50%), a
Manager shall not be entitled to compensation for services performed for the Company. However, upon substantiation of the amount and purpose thereof, the Managers shall be entitled to reimbursement for expenses reasonably incurred in connection with
the activities of the Company. 

 5.4. Officers. Unless determined otherwise by GRMH, the Manager may appoint agents of the
Company, referred to as “Officers,” to carry out the Manager’s decisions and the day-to-day activities of the Company. Unless determined otherwise by GRMH, the Officers shall have
the titles, power, authority, and duties as from time to time may be assigned by the Manager or GRMH. 
 5.5. Duties of Parties. 

5.5.1. The Manager shall not be liable, responsible, or accountable in damages or otherwise to the Company or to any Member for
any action taken or any failure to act on behalf of the Company within the scope of the authority conferred on the Manager by this Agreement or by law, unless the action or omission constituted a breach of the Manager’s duty of loyalty, was not
in good faith, involved intentional misconduct or knowing violation of law, resulted in the receipt of an improper personal benefit, or constituted recklessness. 

5.5.2. Nothing in this Agreement shall be deemed to restrict in any way the rights of any Member, or of any Affiliate of any
Member, to conduct any other business or activity whatsoever, and the Member shall not be accountable to the Company or to any Member with respect to that business or activity even if the business or activity competes with the Company’s
business. The organization of the Company shall be without prejudice to the Member’s respective rights (or the rights of their respective Affiliates) to maintain, expand, or diversify such other interests and activities and to receive and enjoy
profits or compensation therefrom. Each Member waives any rights the Member might otherwise have to share or participate in such other interests or activities of any other Member or the Member’s Affiliates. 

5.5.3. Each Member understands and acknowledges that the conduct of the Company’s business may involve business dealings
and undertakings with Members and their Affiliates. In any of those cases, those dealings and undertakings shall be at arm’s length and on commercially reasonable terms. 

5.6. Indemnification. The Company shall indemnify the Manager and Officers for any action taken or failure to act on behalf of
the Company within the scope of the authority conferred on the Manager or Officers by this Agreement or by law, unless such action or omission was not in good faith, involved intentional misconduct or knowing violation of law, resulted in the
receipt of an improper personal benefit, or constituted recklessness. The Company shall promptly notify the Members whenever the Manager or an Officer has been indemnified by the Company for any act, matter, or thing whatsoever.  

Section VI. 
 Transfer of
Interests; Additions and Withdrawals of Members 
 6.1. Transfers. Except as provided in Section 4.7, no Member may
make a Voluntary Transfer of all, or any portion of, or any interest or rights in, the Membership Interests owned by the Member, and no Interest Holder may make a Voluntary Transfer of all, or any portion of, or any interest or rights in, any
Economic Interest. Each Member hereby acknowledges the  

 
reasonableness of this prohibition in view of the purposes of the Company and the relationship of the Members. Any attempt to make a Voluntary Transfer of any Membership Interests or Economic
Interests in violation of the prohibition contained in this Section 6.1 shall be invalid, null, and void, and of no force or effect. Any Person to whom a Membership Interest is attempted to be transferred in violation of this Section 6.1
shall not be entitled to vote on matters coming before the Members, participate in the management of the Company, act as an agent of the Company, receive distributions from the Company, or have any other rights in or with respect to the Membership
Interests. 
 6.2. Withdrawal. No Member shall have the right or power to withdraw voluntarily from the Company. 

6.3. Involuntary Transfer. Immediately upon the occurrence of an Involuntary Transfer, the successor of the Member shall thereupon
become an Interest Holder but shall not become a Member. 
 6.4. Additional Members. Notwithstanding anything in this Agreement to
the contrary, the Manager may, without the consent of the Members, (i) admit one or more additional Members to the Company, (ii) issue Preferred Equity to such additional Members, which shall entitle the holder to distributions pursuant to
Sections 4.1, 4.1A and 4.4 on the same terms and in the same priority as distributions payable to Class B Members thereunder. 
 Section
VII. 
 Dissolution, Liquidation, and Termination of the Company 

7.1. Events of Dissolution. The Company shall dissolve and its affairs shall be wound up on the first to occur of the following events:

 7.1.1. upon a determination by GRMH or 

7.1.2. upon the entry of a decree of judicial dissolution of the Company under the Act. 

7.2. Procedure for Winding Up and Dissolution. If the Company is dissolved, the Manager shall wind up the Company’s
affairs. On winding up of the Company, the assets of the Company shall be distributed, first, to creditors of the Company, including Interest Holders who are creditors, in satisfaction of the liabilities of the Company, and then to the Interest
Holders in accordance with Section 4.4. 
 7.3. Filing of Certificate of Cancellation. If the Company is dissolved, the
Manager shall promptly file Certification of Cancellation with the Secretary. If there is no Manager, the Certificate of Cancellation shall be filed by the remaining Members. If there are no remaining Members, the Certificate of Cancellation shall
be filed by the last Person to be a Member. If there is no Manager, remaining Members, or a Person who last was a Member, the Certificate of Cancellation shall be filed by the legal or personal representatives of the Person who last was a Member.

 Section VIII. 

Books, Records, Accounting, and Tax Elections 

8.1. Bank Accounts. All funds of the Company shall be deposited in a bank account or accounts opened in the Company’s name.
The Manager shall determine the institution or institutions at which the accounts will be opened and maintained, the types of accounts, and the Persons who will have authority with respect to the accounts and the funds therein. 

8.2. Books and Records. The Manager shall keep or cause to be kept complete and accurate books and records of the Company and
supporting documentation of the transactions with respect to the conduct of the Company’s business.  
 8.3. Annual
Accounting Period. The annual accounting period of the Company shall be its taxable year. The Company’s taxable year shall be selected by the Manager, subject to the requirements and limitations of the Code. 

Section IX. 
 General
Provisions 
 9.1. Assurances. Each Member shall execute all such certificates and other documents and shall do all such
filing, recording, publishing, and other acts as the Members deem appropriate to comply with the requirements of law for the formation and operation of the Company and to comply with any laws, rules, and regulations relating to the acquisition,
operation, or holding of the property of the Company. 
 9.2. Notifications. Any notice, demand, consent, election,
offer, approval, request, or other communication (collectively, a “notice”) required or permitted under this Agreement must be in writing and either delivered personally or sent by certified or registered mail, postage prepaid, return
receipt requested. A notice must be addressed to an Interest Holder at the Interest Holder’s last known address on the records of the Company. A notice to the Company must be addressed to the Company’s principal office. A notice delivered
personally will be deemed given only when acknowledged in writing by the person to whom it is delivered. A notice that is sent by mail will be deemed given three (3) business days after it is mailed. Any party may designate, by notice to all of
the others, substitute addresses or addressees for notices; and, thereafter, notices are to be directed to those substitute addresses or addressees. 

9.3. Specific Performance. The parties recognize that irreparable injury will result from a breach of any provision of this
Agreement and that money damages will be inadequate to fully remedy the injury. Accordingly, in the event of a breach or threatened breach of one or more of the provisions of this Agreement, any party who may be injured (in addition to any other
remedies which may be available to that party) shall be entitled to one or more preliminary or permanent orders (i) restraining and enjoining any act which would constitute a breach, or (ii) compelling the performance of any obligation
which, if not performed, would constitute a breach. 
 9.4. Complete Agreement. This Agreement constitutes the final,
complete, and exclusive statement of the agreement among the Members. It supersedes all prior written and oral statements, including any prior representation, statement, condition, or warranty. This Agreement may not be amended without the written
consent of all of the Members. 

 9.5. Headings. The headings in this Agreement are inserted as a matter of
convenience only, and do not define, limit, or describe the scope of this Agreement or the intent of the Members. 
 9.6.
Binding Provisions. This Agreement is binding upon, and inures to the benefit of, the parties hereto and their respective heirs, executors, administrators, personal and legal representatives, successors, and permitted assigns. 

9.7. Jurisdiction and Venue. Any suit involving any dispute or matter arising under this Agreement may only be brought in the
United States District Court for the Western District of Oklahoma or the District Court of Oklahoma County, Oklahoma. All Members hereby consent to the exercise of personal jurisdiction by any such court with respect to any such proceeding.

 9.8. Terms. Common nouns and pronouns shall be deemed to refer to the masculine, feminine, neuter, singular, and
plural, as the identity of the Person may in the context require. “Includes” and “including” are not limiting. The rule of construction that a document is to be construed most strictly against the party who drafted the document
shall not be applicable to this Agreement because both parties participated in the preparation of this Agreement. 
 9.9.
Separability of Provisions. Each provision of this Agreement shall be considered separable; and if for any reason, any provision or provisions herein are determined to be determined to be invalid and contrary to any existing or future law,
such invalidity shall not impair the operation of or affect those portions of this Agreement that are valid. 
 9.10.
Counterparts. This Agreement may be executed simultaneously in two or more counterparts each of which shall be deemed an original, and all of which, when taken together, constitute one and the same document. The signature of any party to any
counterpart shall be deemed a signature to, and may be appended to, any other counterpart. 
 9.11. Estoppel Certificate.
Each Member shall, within ten (10) days after written request by any Member or the Manager, deliver to the requesting Person a certificate stating, to the Member’s knowledge, that: (i) this Agreement is in full force and effect;
(ii) this Agreement has not been modified except by any instrument or instruments identified in the certificate; and (iii) there is no default hereunder by the requesting Person, or if there is a default, the nature and extent thereof.

 9.12. No Partnership Intended for Nontax Purposes. The Members have formed the Company under the Act, and expressly do
not intend hereby to form a partnership under either the Delaware Revised Uniform Partnership Act or the Delaware Revised Uniform Limited Partnership Act. The Members do not intend to be partners to one another, or partners to any third party. To
the extent any Member, by word or action, represents to another person that any other Member is a partner or that the Company is a partnership, the Member making such wrongful representation shall be liable to any other Member who incurs personal
liability by reason of such representation. No statement or action of any Member that occurred prior to the formation of the Company shall be construed to constitute the formation of a partnership of that Member with any other Member or any third
party. 

 9.13. Amendment. This Agreement may be amended solely upon the recommendation of
the Manager, subject to approval by a majority in interest of the Class A Members. Notwithstanding the foregoing or anything else to the contrary, the Class A Members hereby consent to the amendment of Exhibit A to
this Agreement by a Manager at any time to reflect the Membership Interest and Capital Contribution of any Member or the addition or withdrawal of any Member. 

9.14. Power of Attorney. 

9.14.1 Grant of Power. Each Member constitutes and appoints the Manager as the Member’s true and lawful attorney-in-fact
(“Attorney-in-Fact”), and in the Member’s name, place and stead, to make, execute, sign, acknowledge, and file: 
 9.14.1.1
one or more articles of organization; 
 9.14.1.2 all documents (including amendments to articles of organization) which the
Attorney-in-Fact deems appropriate to reflect any amendment, change, or modification of this Agreement; 
 9.14.1.3 any and all other
certificates or other instruments required to be filed by the Company under the laws of any state of jurisdiction, including, without limitation, any certificate or other instruments necessary in order for the Company to continue to qualify as a
limited liability company under the laws of the jurisdiction wherein the Company may be doing business or owning property; 
 9.14.1.4 one
or more fictitious or trade name certificates; and 
 9.14.1.5 all documents which may be required to dissolve and terminate the Company and
to cancel its articles of organization. 
 9.14.2 Irrevocability. The foregoing power of attorney is irrevocable and is coupled
with an interest, and, to the extent permitted by applicable law, shall survive the death or disability of a Member. It also shall survive the transfer of an economic interest, except that if the transferee is approved for admission as a Member,
this power of attorney shall survive the delivery of the assignment for the sole purpose of enabling the Attorney-in-Fact to execute, acknowledge and file any documents needed to effectuate the substitution. Each Member shall be bound by any
representations made by the Attorney-in-Fact acting in good faith pursuant to this power of attorney, and each Member hereby waives any and all defenses which may be available to contest, negate or disaffirm the action of the Attorney-in-Fact taken
in good faith under this power of attorney. 

 9.15 Member Representations and Agreements. Notwithstanding anything contained in
this Agreement to the contrary, each Member hereby represents and warrants to the Company, the Manager and to each other that: (a) the Membership Interest of such Member is acquired for investment purposes only, for the Member’s own
account, and not with a view to or in connection with any distribution, reoffer, resale or other disposition not in compliance with the Securities Act of 1933, as amended, and the rules and regulation thereunder (the “ 1933 Act”) and
applicable state securities laws; (b) such Member, alone or together with the Member’s representatives, possesses such expertise, knowledge and sophistication in financial and business matters generally, and in the type of transactions in
which the Company proposes to engage in particular, that the Member is capable of evaluating the merits and economic risks of acquiring and holding the Membership Interest and the Member is able to bear all such economic risks now and in the future;
(c) such Member has had access to all of the information with respect to the Membership Interest acquired by the Member under this Agreement that the Member deems necessary to make a complete evaluation thereof and has had the opportunity to
question the other Members and the Managers (if any) concerning such Membership Interest; (d) such Member’s decision to acquire the Membership Interest for investment has been based solely upon the evaluation made by the Member;
(e) such Member is aware that the Member must bear the economic risk of an investment in the Company for an indefinite period of time because Membership Interests have not been registered under the 1933 Act or under the securities laws of
various states and, therefore, cannot be sold unless such Membership Interests are subsequently registered under the 1933 Act and any applicable state securities laws or an exemption from registration is available; (f) such Member is aware that
only the Company can take action to register Membership Interests and the Company is under no such obligation and does not propose to attempt to do so; (g) such Member is aware that this Agreement provides restrictions on the ability of a
Member to sell, transfer, assign, mortgage, hypothecate or otherwise encumber the Member’s Membership Interest; (h) such Member agrees that the Member will truthfully and completely answer all questions, and make all covenants, that the
Company or the Managers may, contemporaneously or hereafter, ask or demand for the purpose of establishing compliance with the 1933 Act and applicable state securities laws; and (i) if that Member is an organization, that it is duly organized,
validly existing, and in good standing under the laws of its state of organization and that it has full organizational power and authority to execute and agree to this Agreement and to perform its obligations hereunder. 

[Signature page follows.] 

 THE MEMBERSHIP INTERESTS REFERENCED HEREIN HAVE NOT BEEN 

REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR 

PURSUANT TO THE PROVISIONS OF ANY STATE SECURITIES ACT 

CERTAIN RESTRICTIONS ON TRANSFERS OF 

INTERESTS ARE SET FORTH HEREIN 

IN WITNESS WHEREOF, the undersigned have executed this Operating Agreement for Foundation Health Enterprises LLC as of the date first set
forth above. 
  

			
	 GRAYMARK HEALTHCARE, INC.,
 an
Oklahoma corporation

		
	By:	 	 
		 	Stanton Nelson, President

 Exhibit A 

Membership Interests of Class A Member Common Equity Holders 

 

					
	 Member
	  	Percentage of
Common Equity
Membership Interest	 
	 Graymark Healthcare, Inc.
	  	 	100	% 

 CAPITAL CONTRIBUTIONS OF CLASS B MEMBERS 

 

					
	 Member’s Name
	 	 Member’s Address
	 	 Value of

Member’s
 Capital

Contribution

	Class B Members subscribing to new units	 	As identified in Subscription Agreement	 	$105,000.00 per one percent (1%) membership interest (“Unit”)

 EXHIBIT B 

FORM OF JOINDER 

JOINDER OF MEMBER TO 

OPERATING AGREEMENT 
 OF

 FOUNDATION HEALTH ENTERPRISES LLC 

The undersigned hereby joins in the execution of the Operating Agreement (the “Agreement”) of FOUNDATION HEALTH ENTERPRISES
LLC, a Delaware limited liability company (the “Company”). The undersigned hereby acknowledges that upon acceptance of this Joinder by the Company, (a) this Joinder shall be a counterpart execution of the Agreement and
(b) the undersigned shall be a party to the Agreement. The undersigned hereby agrees to be bound by all the terms of the Agreement as though the undersigned was an original party thereto. 

IN WITNESS WHEREOF, the undersigned has executed this Joinder as of this
            day of             , 2013. 

 

			
	  

	By:	 	  

		
	Address:	 	  

		 	  

		 	  

 ACCEPTANCE 

The foregoing Joinder is hereby accepted by the Company as of             ,
20            . 
  

			
	 FOUNDATION HEALTH ENTERPRISES LLC, 

a Delaware limited liability company

		
	By:	 	 
	Title:	 	  

 Exhibit C 

Membership Interests Held by the Company 

100% of the Preferred Equity Membership Interests in TSH Acquisitions, LLC 

 Exhibit “B” 

Organization Chart of Foundation Healthcare Affiliates, LLC and Related Entities – Pre Merger 

  
 

 

 Exhibit “C” 

Organization Chart of Foundation Healthcare Affiliates, LLC and Related Entities – Post Merger 

  
 

 

 Exhibit “D” 

Operating Agreement of TSH Acquisition, LLC 

 LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 TSH ACQUISTION, LLC

 THIS AGREEMENT is made as of March 13, 2013, by Graymark Healthcare, Inc., an Oklahoma corporation (“GRMH”) and
Foundation Health Enterprises, LLC, an Oklahoma limited liability company (“FHE”) for the purpose of setting forth the limited liability company agreement of TSH Acquistion, LLC, a Delaware limited liability company (the
“Company”). 
 For good and valuable consideration, it is agreed as follows: 

Section I. 
 Defined
Terms 
 The following capitalized terms shall have the meanings specified in this section. Other terms are defined throughout this
Agreement. 
 “Act” shall mean the Delaware Limited Liability Company Act, as amended from time to time. 

“Adjusted Capital Account Deficit” shall mean, with respect to any Interest Holder, the deficit balance, if any, in the
Interest Holder’s Capital Account as of the end of the relevant taxable year, after giving effect to the following adjustments: 
  

	 	(i)	the deficit shall be decreased by the amounts that the Interest Holder is deemed obligated to restore pursuant to Regulation Sections 1.704-2(g)(1) and (i)(5) (i.e., the Interest Holder’s share of Minimum
Gain and Member Minimum Gain); and 

  

	 	(ii)	the deficit shall be increased by the items described in Regulation Section 1.704-1 (b) (2) (ii) (d) (4), (5), and (6). 

“Affiliate” shall mean, with respect to any Member, any Person: (i) which owns more than 50% of the voting interests in
the Member; or (ii) in which the Member owns more than 50% of the voting interests; or (iii) in which more than 50% of the voting interests are owned by a Person who has a relationship with the Member described in clause (i) or (ii)
above. 
 “Agreement” shall mean this Agreement, as amended from time to time. 

“Capital Account” shall mean the account maintained by the Company for each Interest Holder. 

“Capital Contribution” shall mean the total amount of cash and the fair market value of any other assets contributed (or
deemed contributed under Regulation Section 1.704-1(b)(2)(iv)(d)) to the Company by a Member, net of liabilities assumed or to which the assets are subject. 

“Code” shall mean the Internal Revenue Code of 1986, as amended, or any corresponding provision of any succeeding law. 

“Common Equity” shall mean Membership Interests in the Company that do not entitle the owner to the Preference. 

 ‘Company” shall mean TSH Acquisition, L.L.C., the Delaware limited liability
company, organized pursuant to the Certificate of Formation and governed by this Agreement. 
 “Depreciation” shall
mean, for each calendar year, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable for federal income tax purposes with respect to an asset for the calendar year, except that if the adjusted book value of an
asset differs from its adjusted basis for federal income tax purposes at the beginning of the calendar year, then the depreciation, amortization, or cost recovery bears the same ratio to such beginning adjusted book value as federal income tax
depreciation, amortization, or other cost recovery deduction for the calendar year bears to the beginning adjusted tax basis. 

“Discretionary Distribution” shall have the meaning provided in Section 4.1B hereof. 

“Distributable Cash” shall mean the amount of cash that the Manager, in its reasonable discretion, deems available for
distribution to the Interest Holders, taking into account (a) all cash funds derived from operations of the Company (including interest received on reserves), without reduction for any noncash charges, but less cash funds used to pay current
operating expenses and to pay or establish reasonable reserves for future expenses, debt payments, and capital improvements and replacements as determined by the Manager; and (b) any property that the Manager determines is no longer suitable
for use by the Company. At the discretion of the Manager, the amount of Distributable Cash shall be increased by the reduction of any reserve previously established. 

“Economic Interest” shall mean a Person’s share of the Profits and Losses of, and the right to receive distributions
from, the Company. 
 “FHE Redemption” means FHE’s right to give notice, which right can be first exercised
beginning on the first day of the First FHE Redemption Option Year, that the Company make a distribution to FHE, pursuant to Section 4.1A. During the First FHE Redemption Option Year and for the two years thereafter, the amount of such
distribution shall be equal to the greater of ten percent (10%) of (a) FHE’s Capital Contribution with respect to the Preferred Equity, or (b) the sum of FHE’s Unreturned Capital Contribution and the Unpaid Preference;
provided, however, that in no event shall such distribution be greater than the sum FHE’s Unreturned Capital Contribution and the Unpaid Preference. In the fifth
(5th) calendar year after the date hereof, such distribution shall be equal to the sum of the balance of FHE’s Unreturned Capital Contribution and the Unpaid Preference. Such
distribution will be charged to FHE’s Capital Account, as provided in Section 3.5.2. FHE may exercise its FHE Redemption by delivering written notice to the Manager and to FHA and upon receipt of such notice, the FHE Redemption shall be
exercised. 
 “FHE Redemption Obligation” means the amount the Company is required to distribute to FHE on account of
FHE’s election to exercise the FHE Redemption. 
 “FHE Unit Conversion to GRMH Common Stock” refers to the option of
the FHE Unit Holders pursuant to the FHE Operating Agreement, to give notice to FHE to convert each Unit of FHE to GRMH Common Stock at a conversion rate of $2.00 per share. Upon such conversion of FHE Units to GRMH Common Stock, there will be
corresponding reduction of FHE’s Unreturned Capital Contribution and the Unpaid Preference with respect to the Preferred Equity in the Company using the same conversion rate. At such time as the Unpaid Preference and the Unreturned Capital
Contributions with respect to Preferred Equity in the Company have been reduced to zero, there shall be no further rights of FHE Unit Holders to convert such Units to GRMH Common Stock. 

 “First FHE Redemption Option Year” means the second calendar year after the date
hereof. 
 “Interest Holder” shall mean any Person who holds an Economic Interest, whether as a Member or as an unadmitted
assignee of a Member. 
 “Involuntary Transfer” shall mean, with respect to any Member, any Transfer that occurs as
a result of any of the following events: 
  

	 	(vii)	an assignment for the benefit of creditors; 

  

	 	(viii)	any bankruptcy or insolvency proceeding; 

  

	 	(ix)	any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation; 

 

	 	(x)	appointment of a trustee for, receiver for, or liquidation of the Member or of all or any substantial part of the Member’s properties; 

 

	 	(xi)	if the Member is an individual, the Member’s death or adjudication by a court of competent jurisdiction as incompetent to manage the Member’s person or property; 

 

	 	(xii)	if the Member is acting as a Member by virtue of being a trustee of a trust, the termination of the trust; 

  

	 	(xiii)	if the Member is a partnership or limited liability company, the dissolution and commencement of winding up of the partnership or limited liability company; 

 

	 	(xiv)	if the Member is a corporation, the filing of a certificate of dissolution of the corporation or the lapse of 90 days after notice to the corporation of the revocation without reinstatement of its charter; or

  

	 	(xv)	if the Member is an estate, the distribution by the fiduciary of the estate’s entire interest in the company. 

“Manager” shall mean the Person or Persons designated as such pursuant to Section V. 

“Member” shall mean each of GRMH and FHE and any Person who subsequently is admitted as a member of the Company. 

“Member Loan Nonrecourse Deductions” shall mean any Company deductions that would be Nonrecourse Deductions if they were not
attributable to a loan made or guaranteed by a Member within the meaning of Regulation Section 1.704-2(i). 
 “Member
Minimum Gain” has the meaning set forth in Regulation Section 1.704-2(i) for “partner nonrecourse debt minimum gain.” 

 “Membership Interest” shall mean all of the rights of a Member in the Company,
including a Member’s: (i) Economic Interest, (ii) right to inspect the Company’s books and records, (iii) right to participate in the management of and vote on matters coming before the Company, and (iv) unless this Agreement or the
Certificate of Formation provide to the contrary, right to act as an agent of the Company. 
 “Membership Interest
Percentage” shall mean the percentage shown for a Common Equity holder on Exhibit A, as updated by the Managers to reflect the transfer or issuance of additional Common Equity pursuant to this Agreement. 

“Minimum Gain” has the meaning set forth in Regulation Section 1.704-2(d) for “partnership minimum gain”.
Minimum Gain shall be computed separately for each Interest Holder in a manner consistent with the Regulations under Code Section 704(b). 

“Negative Capital Account” shall mean a Capital Account with a balance of less than zero. 

“Nonrecourse Deductions” has the meaning set forth in Regulation Section 1.704-2(b)(1). The amount of Nonrecourse
Deductions for a taxable year of the Company shall be determined according to the provisions of Regulation Section 1.704-2(c). 

“Officer” shall mean each Person designated as such pursuant to Section V. 

“Person” whether of not capitalized shall mean an individual, corporation, partnership, association, limited liability
company, trust, estate, or other entity. 
 “Preference” shall mean an amount equal to a non-compounded annual rate
of return of 9% calculated on the average daily balance of the Unreturned Capital Contribution of FHE with respect to the Preferred Equity.  

“Preferred Equity” shall mean Membership Interests in the Company that entitle the owner to the Preference. 

“Principal” shall mean any person actively serving as an executive officer of a company and devoting substantially all
of his or her business time to the operations of the Company and/or its Affiliates. 
 “Profit” and
“Loss” shall mean, for each taxable year of the Company (or other period for which Profit or Loss must be computed), the Company’s taxable income or loss determined in accordance with Code Section 703(a), with the following
adjustments: 
  

	 	(xvi)	all items of income, gain, loss, deduction, or credit required to be stated separately pursuant to Code Section 703(a)(1) shall be included in computing taxable income or loss; 

 

	 	(xvii)	any tax-exempt income of the Company, not otherwise taken into account in computing Profit or Loss, shall be included in computing taxable income or loss; 

 

	 	(xviii)	any expenditures of the Company described in Code Section 705(a)(2) (B) (or treated as such pursuant to Regulation Section 1.704-1(b)(2)(iv)(i)) and not otherwise taken into account in computing Profit or
Loss, shall be subtracted from taxable income or loss; 

  

	 	(xix)	gain or loss resulting from any taxable disposition of Company property shall be computed by reference to the adjusted book value of the property disposed of notwithstanding the fact that the adjusted book value differs
from the adjusted basis of the property for federal income tax purposes; 

	 	(xx)	in lieu of the depreciation, amortization, or cost recovery deductions allowable in computing taxable income or loss, there shall be taken into account the Depreciation for such taxable year; and 

 

	 	(xxi)	notwithstanding any other provision of this definition, any items which are specially allocated pursuant to Section 4.3 hereof shall not be taken into account in computing Profit or Loss. 

“Regulation” shall mean the income tax regulations, including any temporary or proposed regulations, from time to time
promulgated under the Code. 
 “Secretary” shall mean the Secretary of State of Delaware. 

“Special Distributions” shall mean those distributions made pursuant to Section 4.1A hereof. 

“Transfer” shall include any and all means by which a Member or Interest Holder may be divested of a Membership Interest or
Economic Interest in the Company, including divestment by sale, merger, exchange, gift, assignment, operation of law, pledge, hypothecation, or otherwise. 

“Unpaid Preference” shall mean an amount equal to the cumulative Preference accrued with respect to FHE on the date of a
distribution less any distributions that have been made to FHE under Section 4.1.1 or 4.1.A.1 or (in the event the FHE Redemption Obligation is determined by reference to clause (b) of the definition of FHE Redemption) the amount
distributed pursuant to Section 4.1.A.2 with respect to the Unpaid Preference. 
 “Unreturned Capital
Contribution” shall mean an amount equal to the total Capital Contributions made by FHE with respect to the Preferred Equity less any amount of distributions of Distributable Cash, Discretionary Distributions, or Special Distributions at
any time in excess of the Unpaid Preference. 
 “Voluntary Transfer” shall mean any Transfer other than an
Involuntary Transfer. 
 Section II. 

Formation and Name; Office; Purpose; Term 

2.1. Purpose. The Company is organized to hold membership interests and other equity interests in limited liability companies and other
entities owning, holding and operating surgery centers and surgical hospitals and will engage in any lawful act or activity related thereto in which limited liability companies organized under the Act may engage. 

2.2. Term. The term of existence of the Company shall be perpetual, unless terminated pursuant to Section VII of this Agreement. 

2.3. Principal Office. The principal office and place of business of the Company in the State of Oklahoma shall be located at 204 N.
Robinson, Floor 4, Oklahoma City, OK 73102, or at any other place determined by the Company’s Manager. 

 2.4. The Company was organized on March 13, 2013 and has had one member, GRMH, and
has not filed any income tax returns and has existed as a disregarded entity as provided in Regulation §301.7701-3. Exhibit B is a complete list of the Membership Interests held by the Company as it may be amended from time to time,
and the Member(s)’s adjusted basis of each interests and the fair market value of each interests. 
 Section III. 

Members; Capital; Capital Accounts 

3.1. Capital Contributions. Prior to March 31, 2013, FHE will contribute no more than $14,000,000 in cash to the Company
without the prior written consent of FHA and will have credited to FHE’s Capital Account an amount equal to the contribution as provided in Section 3.5.1. GRMH will be deemed to contribute all of the Company’s assets as of the date
hereof and prior to the FHE contribution and, as provided in Section 3.5.1, will receive a capital account equal to the fair market value of such assets equal to the fair market value shown on Exhibit B. 

3.2. No Interest on Capital Contributions. Interest Holders shall not be paid interest on their Capital Contributions. 

3.3. Return of Capital Contributions. Except as otherwise provided in this Agreement, no Interest Holder shall have the right to
receive the return of any Capital Contribution. 
 3.4. Form of Return of Capital. If an Interest Holder is entitled to
receive a return of a Capital Contribution, the Company may distribute cash, notes, property, or a combination thereof to the Interest Holder in return of the Capital Contribution. 

3.5. Capital Accounts. A separate Capital Account shall be maintained for each Interest Holder as follows. 

3.5.1. An Interest Holder’s Capital Account shall be credited with the Interest Holder’s Capital Contributions, the
amount of any Company liabilities assumed by the Interest Holder (or which are secured by Company property distributed to the Interest Holder), the Interest Holder’s allocable share of Profit, and any item in the nature of income or gain
specially allocated to such Interest Holder pursuant to the provisions of Section IV (other than Section 4.3.3); and 

3.5.2. An Interest Holder’s Capital Account shall be debited with the amount of money and the fair market value of any
Company property distributed to the Interest Holder, the Interest Holder’s allocable share of Loss, and any item in the nature of expenses or losses specially allocated to the Interest Holder pursuant to the provisions of Section IV (other than
Section 4.3.3.). 
 3.5.3. If any Economic Interest is transferred pursuant to the terms of this Agreement, the
transferee shall succeed to the Capital Account of the transferor to the extent the Capital Account is attributable to the transferred Economic Interest. If the adjusted book value of Company property is adjusted pursuant to this Agreement, the
Capital Account of each Interest Holder shall be adjusted to reflect the aggregate adjustment in the same manner as if the Company had recognized gain or loss equal to the 

 
amount of such aggregate adjustment. It is intended that the Capital Accounts of all Interest Holders shall be maintained in compliance with the provisions of the Regulations issued under Code
Section 704, including Regulation Section 1.704-1(b), and all provisions of this Agreement relating to the maintenance of Capital Accounts shall be interpreted and applied in a manner consistent with that Regulation. 

3.6. Loans. Any Member may, at any time, make or cause a loan to be made to the Company in any amount and on those terms upon
which the Manager and the Member agree. 
 3.7. Preferred Equity. Notwithstanding any other provision of this
Agreement, at such time as the Unpaid Preference and the Unreturned Capital Contributions with respect to Preferred Equity have been reduced to zero, such Preferred Equity shall be deemed cancelled and redeemed by the Company and the owners of such
Preferred Equity shall have no further rights with respect to such Preferred Equity. At that time, the Common Equity holders shall be the only members of the Company. 

Section IV. 
 Profit,
Loss, and Distributions 
 4.1. Distributions of Distributable Cash. Subject to applicable law and any limitations contained
elsewhere in this Agreement, in any calendar year, the Manager shall direct the Company to distribute any Distributable Cash to the Interest Holders, which distributions shall be made to the Interest Holders as follows: 

4.1.1. First, to FHE in an amount equal to its Unpaid Preference; 

4.1.2. Then, subject to Section 4.1B, to the holders of Common Equity in accordance with their respective Membership
Interest Percentages. 
 4.1A Special Distribution. In a calendar year in which FHE exercises its FHE Redemption, distributions
of Distributable Cash that are made after the exercise of the FHE Redemption shall be made as follows: 
 4.1A.1 First to FHE in an
amount equal to its Unpaid Preference; 
 4.1A.2 Second, to FHE in an amount equal to the unpaid FHE Redemption Obligation; and 

4.1A.3 Thereafter, subject to Section 4.1.B, to the holders of Common Equity in accordance with their respective Membership Interest
Percentages. 
 If the Manager determines that the unpaid FHE Redemption Obligation cannot be satisfied during the taxable year without
additional capital or the Manager determines that there is not sufficient Distributable Cash to fully satisfy the unpaid FHE Redemption Obligation, the Manager will direct GRMH to, and GRMH will promptly, recontribute any distributions received by
GRMH pursuant to this Article IV after the date hereof to the extent necessary to satisfy the unpaid FHE Redemption Obligation. It is expected that the Manager will operate the Company in a manner recognizing the FHE Redemption Obligation,
including imposing reasonable restrictions on the Company’s capital and non capital expenditures to allow the satisfaction of the FHE Redemption Obligation. 

 4.2. Profit and Loss Allocations. Except as expressly provided to the contrary in
this Section 4.2, after giving effect to the special allocations set forth in Section 4.3, for any taxable year of the Company, Profit or Loss shall be allocated to the Interest Holders in proportion to their Membership Interest
Percentages. 
 4.3. Regulatory Allocations. 

4.3.1. Qualified Income Offset. No Interest Holder shall be allocated Losses or deductions to the extent the allocation
would, as of the end of the taxable year, create or increase an Adjusted Capital Account Deficit. If an Interest Holder receives (1) an allocation of Loss or deduction (or item thereof), or (2) any distribution which causes the Interest
Holder to have or increase an Adjusted Capital Account Deficit at the end of any taxable year, then all items of income and gain of the Company (consisting of a pro rata portion of each item of Company income, including gross income and gain) for
that taxable year shall be allocated to that Interest Holder before any other allocation is made of Company items for that taxable year, in the amount and in proportions required to eliminate the excess as quickly as possible. This
Section 4.3.1 is intended to comply with, and shall be interpreted consistently with, the “qualified income offset” provisions of the Regulations promulgated under Code Section 704(b). 

4.3.2. Minimum Gain Chargeback. Except as set forth in Regulation Section 1.704-2(f)(2), (3), and (4), if, during
any taxable year, there is a net decrease in Minimum Gain or Member Minimum Gain, each Interest Holder, prior to any other allocation pursuant to this Section IV, shall be specially allocated items of gross income and gain for such taxable year
(and, if necessary, subsequent taxable years) in an amount equal to that Interest Holder’s share of the net decrease of Minimum Gain or Member Minimum Gain. Allocations of gross income and gain pursuant to this Section 4.3.2 shall be made
first from gain recognized from the disposition of Company assets subject to nonrecourse liabilities (within the meaning of the Regulations promulgated under Code Section 752), to the extent of the Minimum Gain or Member Minimum Gain
attributable to those assets, and thereafter, from a pro rata portion of the Company’s other items of income and gain for the taxable year. It is the intent of the parties hereto that any allocation pursuant to this Section 4.3.2 shall
constitute a “minimum gain chargeback” under Regulation Sections 1.704-2(f) or 1.704-2(i)(4) and that this section be interpreted consistently therewith. 

4.3.3. Contributed Property and Book-Ups. In accordance with Code Section 704(c) and the Regulations thereunder, as
well as Regulation Section 1.704-1(b)(2)(iv)(d)(3), income, gain, loss, and deduction with respect to any property contributed (or deemed contributed) to the Company shall, solely for tax purposes, be allocated among the Interest Holders so as
to take account of any variation between the adjusted basis of the property to the Company for federal income tax purposes and its fair market value at the date of contribution (or deemed contribution). Unless the Manager elects otherwise, if the
adjusted book value of any Company asset is adjusted as provided 

 
herein, subsequent allocations of income, gain, loss, and deduction with respect to the asset shall take account of any variation between the adjusted basis of the asset for federal income tax
purposes and its adjusted book value in the manner required under Code Section 704(c) using the “traditional method” described in the Regulations thereunder. 

4.3.4. Code Section 754 Adjustment. To the extent an adjustment to the tax basis of any Company asset pursuant to
Code Section 734(b) or Code Section 743(b) is required, pursuant to Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of the adjustment to the Capital Accounts shall be
treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases basis), and the gain or loss shall be specially allocated to the Interest Holders in a manner consistent with the manner in which
their Capital Accounts are required to be adjusted pursuant to that Section of the Regulations. 
 4.3.5. Nonrecourse
Deductions. Nonrecourse Deductions for a taxable year or other period shall be specially allocated to the holders of Common Equity in accordance with their respective Membership Interest Percentages. 

4.3.6. Member Loan Nonrecourse Deductions. Any Member Loan Nonrecourse Deduction for any taxable year or other period
shall be specially allocated to the Interest Holder who bears the risk of loss with respect to the loan to which the Member Loan Nonrecourse Deduction is attributable in accordance with Regulation Section 1.704-2. 

4.3.7. Guaranteed Payments. Any distributions with respect to the Preference are intended to be guaranteed payment under
Code Section 707(c) paid to recipient other than in its capacity as a Member within the meaning of Code Section 707(a) and the partnership expense arising from such guaranteed payment shall be allocated to the Common Equity holders based
on their Membership Interest Percentages. To the extent any such distributions with respect to the Preference, any compensation paid to any Member by the Company, including any fees payable to any Member pursuant to Section 5.3 hereof, or the
payment to FHE made pursuant to Section 4.6, is determined by the Internal Revenue Service not to be a guaranteed payment under Code Section 707(c) or is not paid to the Member other than in the Person’s capacity as a Member within
the meaning of Code Section 707(a), the Member shall be specially allocated gross income of the Company in an amount equal to the amount of that payment, and the Member’s Capital Account shall be adjusted to reflect the payment. 

4.3.8. Unrealized Receivables. If an Interest Holder’s Interest is reduced (provided the reduction does not result
in a complete termination of the Interest Holder’s Interest), the Interest Holder’s share of the Company’s “unrealized receivables” and “substantially appreciated inventory” (within the meaning of Code
Section 751) shall not be reduced, so that, notwithstanding any other provision of this Agreement to the contrary, that portion of the Profit otherwise allocable upon a liquidation or dissolution of the Company pursuant to Section 4.4
hereof which is taxable as ordinary income (recaptured) for federal income tax purposes shall, to the extent possible without increasing the total gain to the Company or to any Interest Holder, be specially allocated among the Interest Holders in
proportion to the deductions (or basis reductions treated as deductions) giving rise to such recapture. 

 4.3.9. Withholding. All amounts required to be withheld pursuant to Code
Section 1446 or any other provision of federal, state, or local tax law shall be treated as amounts actually distributed to the affected Interest Holders for all purposes under this Agreement. 

4.4. Liquidation and Dissolution. 

4.4.1. If the Company is liquidated, the assets of the Company shall be distributed to the Interest Holders in accordance with
the following: 
 (iii) First to FHE in an amount equal to the Unpaid Capital Contribution and Unpaid Preference as of the date of the
distribution; 
 (iv) Then, the balance to the holders of Common Equity in accordance with their respective Membership Interest Percentages.

 4.4.2. No Interest Holder shall be obligated to restore a Negative Capital Account. 

4.5. General. 

4.5.1. If any assets of the Company are distributed in kind to the Interest Holders, those assets shall be valued on the basis
of their fair market value, and any Interest Holder entitled to any interest in those assets shall receive that interest as a tenant-in-common with all other Interest Holders so entitled. Unless the Members (including FHE) otherwise agree, the fair
market value of the assets shall be determined by an independent appraiser who shall be selected by the Members with the consent of FHE. The Profit or Loss for each undistributed asset shall be determined as if the asset had been sold at its fair
market value, and the Profit or Loss shall be allocated as provided in Section 4.2 and shall be properly credited or charged to the Capital Accounts of the Interest Holders prior to the distribution of the assets in liquidation pursuant to
Section 4.4. 
 4.5.2. All Profit and Loss shall be allocated, and all distributions shall be made, to the Persons shown
on the records of the Company to have been Interest Holders as of the last day of the taxable year for which the allocation or distribution is to be made. All distributions shall be made to the Persons shown on the records of the company to have
been Interest Holders as of the date the distribution is to be made. Notwithstanding the foregoing, unless the Company’s taxable year is separated into segments, if there is a Transfer during the taxable year, the Profit or Loss shall be
allocated between the original Interest Holder and the successor on the basis of the number of days each was an Interest Holder during the taxable year; provided, however, the Company’s taxable year shall be segregated into two or more segments
in order to account for Profit, Loss, or proceeds attributable to any extraordinary nonrecurring items of the Company. 

 4.5.3. The Manager is authorized, upon the advice of the Company’s tax
counsel, to amend this Section IV to comply with the Code and the Regulations promulgated under Code Section 704(b); provided, however, that no amendment shall materially affect distributions to an Interest Holder without the Interest
Holder’s prior written consent. 
 4.6. Clawback. Upon the dissolution of the Company, the Manager shall calculate the amount by
which FHE’s Capital Contributions with respect to the Preferred Equity plus the Preference thereon exceeds all distributions made to FHE on account of the provisions of Section IV. This calculated amount is hereinafter referred to as the
“Clawback Requirement”. GRMH shall contribute to the Company an amount (hereinafter referred to as the “Minimum Distribution”) equal to the lesser of (a) the Clawback Requirement or (b) the aggregate amount of
distributions received by GRMH from the Company after the date of this Agreement. The Company, upon receipt of the Minimum Distribution, shall pay an amount equal to the Minimum Distribution to FHE. The amount distributed to FHE shall be accounted
for as a guaranteed payment under Code Section 707(c). The partnership expense arising from such guaranteed payment shall be allocated to GRMH. 

Section V. 
 Management:
Rights, Powers, and Duties 
 5.1. Management. 

5.1.1. Manager. The Company shall be managed by one or more Managers, who may, but need not, be Members. The initial
Managers are Stanton Nelson and Robert M. Byers. 
 5.1.2. General Powers. The Manager shall have full, exclusive, and
complete discretion, power, and authority, subject in all cases to the other provisions of this Agreement and the requirements of applicable law, to manage, control, administer, and operate the business and affairs of the Company and to make all
decisions affecting such business and affairs, including, for Company purposes, the power to: 
 (a) acquire by purchase, lease, or
otherwise, any real or personal property; 
 (b) construct, operate, maintain, finance, and improve, and to own, sell, convey, assign,
mortgage, or lease any real or personal property; 
 (c) enter into agreements and contracts and give receipts, releases, and discharges;

 (d) purchase liability and other insurance to protect the Company’s properties and business; 

(e) borrow money for and on behalf of the Company; 

 (f) prepay, in whole or in part, refinance, amend, modify, or extend any mortgages or deeds of
trust that may affect any asset of the Company and in connection therewith to execute for and on behalf of the Company any extensions, renewals, or modifications of such mortgages or deeds of trust; 

(g) execute any and all other instruments and documents that may be necessary or in the opinion of the Managers desirable to carry out the
intent and purpose of this Agreement, including documents whose operation and effect extend beyond the term of the Company; 
 (h) make any
and all expenditures that the Manager, in its sole discretion, deems necessary or appropriate in connection with the management of the affairs of the Company and the carrying out of its obligations and responsibilities under this Agreement,
including all legal, accounting, and other related expenses incurred in connection with the organization and financing and operation of the Company; 

(i) enter into any kind of activity necessary to, in connection with, or incidental to the accomplishment of the purposes of the Company; 

(j) invest and reinvest Company reserves in short- term instruments or money market funds; and 

(k) direct the Company to make a loan (with an interest rate equal to the applicable federal rate) to GRMH in an amount equal to the Capital
Contribution made by FHE with respect to the Preferred Equity. 
 5.1.3. Extraordinary Transactions. Notwithstanding
anything to the contrary in this Agreement (other than Section 5.1.4 below), the Manager shall not undertake any of the following without the approval of the Members: 

(a) the sale, exchange, lease, or other disposition of all or substantially all of the assets of the Company; 

(b) the merger, consolidation, or reorganization of the Company with or into any other Person; 

(c) subject to Section 5.1.4, the amendment or restatement of the Certificate of Formation of the Company or this Agreement; and 

(d) the admission of additional members to the Company. 

5.1.4. [RESERVED] 

 5.1.5. Limitation on Authority of Members. 

(a) No Member is an agent of the Company solely by virtue of being a Member, and no Member has authority to act for the Company solely by
virtue of being a Member. 
 (b) Any Member who takes any action or binds the Company in violation of this section shall be solely
responsible for any loss and expense incurred by the Company as a result of the unauthorized action and shall indemnify and hold the Company harmless with respect to the loss or expense. 

5.1.6. Removal of Manager. GRMH at any time and from time to time and for any reason may remove any Manager then acting
and select a new Manager. 
 5.2. Meetings of and Voting by Members. 

5.2.1. A meeting of the Members may be called at any time by the Manager or any Member. Meetings of Members shall be held at
the Company’s principal place of business or at any other place designated by the Manager. Not less than ten (10) nor more than ninety (90) days before each meeting, the Manager or the Member calling the meeting shall give written
notice of the meeting to each Member. The notice shall state the time, place, and purpose of the meeting. Notwithstanding the foregoing provisions, each Member waives notice if before or after the meeting the Member signs a waiver of the notice that
is filed with the records of Members meetings or is present at the meeting in person or by proxy. Unless this Agreement provides otherwise, at a meeting of Members, the presence in person or by proxy of GRMH constitutes a quorum. A Member may vote
either in person or by written proxy signed by the Member or by the Member’s duly authorized attorney-in-fact. 
 5.2.2.
Except as otherwise provided in this Agreement, the affirmative vote of the Members whose Membership Interest Percentages total more than fifty percent (50%) shall be required to approve any matter coming before the Members. 

5.2.3. Except as otherwise provided in this Agreement, FHE shall not be entitled to vote. 

5.2.4. In lieu of holding a meeting, the Members may vote or otherwise take action by a written consent stating the action
taken executed by the Members holding a majority or other required amount of Membership Interests then held by Members. 
 5.3. Personal
Services. 
 5.3.1. No Member shall be required to perform services for the Company solely by virtue of being a Member.
Unless approved by the Members, including FHE only so long as FHE holds Common Equity in the Company, no Member shall be entitled to compensation for services performed for the Company by the Member. However, upon substantiation of the amount and
purpose thereof, the Members shall be entitled to reimbursement for expenses reasonably incurred in connection with the activities of the Company, including but not limited to, reasonable expenses incurred in connection with services provided to the
Company by employees of Affiliates. 

 5.3.2. Unless approved by Members whose Membership Interest Percentages total
more than fifty percent (50%) and FHE only so long as FHE holds Common Equity in the Company, a Manager shall not be entitled to compensation for services performed for the Company. However, upon substantiation of the amount and purpose
thereof, the Managers shall be entitled to reimbursement for expenses reasonably incurred in connection with the activities of the Company. 

5.4. Officers. Unless determined otherwise by GRMH, the Manager may appoint agents of the Company, referred to as “Officers,” to carry out the Manager’s decisions and the day-to-day activities of the Company. Unless determined otherwise by GRMH, the Officers shall have the titles, power, authority, and duties as
from time to time may be assigned by the Manager or GRMH. 
 5.5. Duties of Parties. 

5.5.1. The Manager shall not be liable, responsible, or accountable in damages or otherwise to the Company or to any Member for
any action taken or any failure to act on behalf of the Company within the scope of the authority conferred on the Manager by this Agreement or by law, unless the action or omission constituted a breach of the Manager’s duty of loyalty, was not
in good faith, involved intentional misconduct or knowing violation of law, resulted in the receipt of an improper personal benefit, or constituted recklessness. 

5.5.2. Nothing in this Agreement shall be deemed to restrict in any way the rights of any Member, or of any Affiliate of any
Member, to conduct any other business or activity whatsoever, and the Member shall not be accountable to the Company or to any Member with respect to that business or activity even if the business or activity competes with the Company’s
business. The organization of the Company shall be without prejudice to the Member’s respective rights (or the rights of their respective Affiliates) to maintain, expand, or diversify such other interests and activities and to receive and enjoy
profits or compensation therefrom. Each Member waives any rights the Member might otherwise have to share or participate in such other interests or activities of any other Member or the Member’s Affiliates. 

5.5.3. Each Member understands and acknowledges that the conduct of the Company’s business may involve business dealings
and undertakings with Members and their Affiliates. In any of those cases, those dealings and undertakings shall be at arm’s length and on commercially reasonable terms. 

5.6. Indemnification. The Company shall indemnify the Manager and Officers for any action taken or failure to act on behalf of
the Company within the scope of the authority conferred on the Manager or Officers by this Agreement or by law, unless such action or omission was not in good faith, involved intentional misconduct or knowing violation of law, resulted in the
receipt of an improper personal benefit, or constituted recklessness. The Company shall promptly notify the Members whenever the Manager or an Officer has been indemnified by the Company for any act, matter, or thing whatsoever.  

 Section VI. 

Transfer of Interests; Additions and Withdrawals of Members 

6.1. Transfers. Except as provided in Section 4.7, no Member may make a Voluntary Transfer of all, or any portion of, or
any interest or rights in, the Membership Interests owned by the Member, and no Interest Holder may make a Voluntary Transfer of all, or any portion of, or any interest or rights in, any Economic Interest. Each Member hereby acknowledges the
reasonableness of this prohibition in view of the purposes of the Company and the relationship of the Members. Any attempt to make a Voluntary Transfer of any Membership Interests or Economic Interests in violation of the prohibition contained in
this Section 6.1 shall be invalid, null, and void, and of no force or effect. Any Person to whom a Membership Interest is attempted to be transferred in violation of this Section 6.1 shall not be entitled to vote on matters coming before
the Members, participate in the management of the Company, act as an agent of the Company, receive distributions from the Company, or have any other rights in or with respect to the Membership Interests. 

6.2. Withdrawal. No Member shall have the right or power to withdraw voluntarily from the Company. 

6.3. Involuntary Transfer. Immediately upon the occurrence of an Involuntary Transfer, the successor of the Member shall
thereupon become an Interest Holder but shall not become a Member. 
 6.4. Additional Members. Notwithstanding anything
in this Agreement to the contrary, the Manager may, without the consent of the Members, (i) admit one or more additional Members to the Company, (ii) issue Preferred Equity to such additional Members, which shall entitle the holder to
distributions pursuant to Sections 4.1, 4.1A, 4.1B, and 4.4 on the same terms and in the same priority as distributions payable to FHE thereunder.  

Section VII. 

Dissolution, Liquidation, and Termination of the Company 

7.1. Events of Dissolution. The Company shall dissolve and its affairs shall be wound up on the first to occur of the following
events: 
 7.1.1. upon a determination by GRMH or 

7.1.2. upon the entry of a decree of judicial dissolution of the Company under the Act. 

7.2. Procedure for Winding Up and Dissolution. If the Company is dissolved, the Manager shall wind up the Company’s
affairs. On winding up of the Company, the assets of the Company shall be distributed, first, to creditors of the Company, including Interest Holders who are creditors, in satisfaction of the liabilities of the Company, and then to the Interest
Holders in accordance with Section 4.4. 

 7.3. Filing of Certificate of Cancellation. If the Company is dissolved, the
Manager shall promptly file Certification of Cancellation with the Secretary. If there is no Manager, the Certificate of Cancellation shall be filed by the remaining Members. If there are no remaining Members, the Certificate of Cancellation shall
be filed by the last Person to be a Member. If there is no Manager, remaining Members, or a Person who last was a Member, the Certificate of Cancellation shall be filed by the legal or personal representatives of the Person who last was a Member.

 Section VIII. 

Books, Records, Accounting, and Tax Elections 

8.1. Bank Accounts. All funds of the Company shall be deposited in a bank account or accounts opened in the Company’s name.
The Manager shall determine the institution or institutions at which the accounts will be opened and maintained, the types of accounts, and the Persons who will have authority with respect to the accounts and the funds therein. 

8.2. Books and Records. The Manager shall keep or cause to be kept complete and accurate books and records of the Company and
supporting documentation of the transactions with respect to the conduct of the Company’s business.  
 8.3. Annual
Accounting Period. The annual accounting period of the Company shall be its taxable year. The Company’s taxable year shall be selected by the Manager, subject to the requirements and limitations of the Code. 

Section IX. 
 General
Provisions 
 9.1. Assurances. Each Member shall execute all such certificates and other documents and shall do all such
filing, recording, publishing, and other acts as the Members deem appropriate to comply with the requirements of law for the formation and operation of the Company and to comply with any laws, rules, and regulations relating to the acquisition,
operation, or holding of the property of the Company. 
 9.2. Notifications. Any notice, demand, consent, election,
offer, approval, request, or other communication (collectively, a “notice”) required or permitted under this Agreement must be in writing and either delivered personally or sent by certified or registered mail, postage prepaid, return
receipt requested. A notice must be addressed to an Interest Holder at the Interest Holder’s last known address on the records of the Company. A notice to the Company must be addressed to the Company’s principal office. A notice delivered
personally will be deemed given only when acknowledged in writing by the person to whom it is delivered. A notice that is sent by mail will be deemed given three (3) business days after it is mailed. Any party may designate, by notice to all of
the others, substitute addresses or addressees for notices; and, thereafter, notices are to be directed to those substitute addresses or addressees. 

9.3. Specific Performance. The parties recognize that irreparable injury will result from a breach of any provision of this
Agreement and that money damages will be inadequate to fully remedy the injury. Accordingly, in the event of a breach or threatened breach of one or more of the provisions of this Agreement, any party who may be injured (in addition to any other 

 
remedies which may be available to that party) shall be entitled to one or more preliminary or permanent orders (i) restraining and enjoining any act which would constitute a breach, or
(ii) compelling the performance of any obligation which, if not performed, would constitute a breach. 
 9.4. Complete
Agreement. This Agreement constitutes the final, complete, and exclusive statement of the agreement among the Members. It supersedes all prior written and oral statements, including any prior representation, statement, condition, or warranty.
This Agreement may not be amended without the written consent of all of the Members. 
 9.5. Headings. The headings in
this Agreement are inserted as a matter of convenience only, and do not define, limit, or describe the scope of this Agreement or the intent of the Members. 

9.6. Binding Provisions. This Agreement is binding upon, and inures to the benefit of, the parties hereto and their respective
heirs, executors, administrators, personal and legal representatives, successors, and permitted assigns. 
 9.7.
Jurisdiction and Venue. Any suit involving any dispute or matter arising under this Agreement may only be brought in the United States District Court for the Western District of Oklahoma or the District Court of Oklahoma County, Oklahoma. All
Members hereby consent to the exercise of personal jurisdiction by any such court with respect to any such proceeding. 
 9.8.
Terms. Common nouns and pronouns shall be deemed to refer to the masculine, feminine, neuter, singular, and plural, as the identity of the Person may in the context require. “Includes” and “including” are not limiting. The
rule of construction that a document is to be construed most strictly against the party who drafted the document shall not be applicable to this Agreement because both parties participated in the preparation of this Agreement. 

9.9. Separability of Provisions. Each provision of this Agreement shall be considered separable; and if for any reason, any
provision or provisions herein are determined to be determined to be invalid and contrary to any existing or future law, such invalidity shall not impair the operation of or affect those portions of this Agreement that are valid. 

9.10. Counterparts. This Agreement may be executed simultaneously in two or more counterparts each of which shall be deemed an
original, and all of which, when taken together, constitute one and the same document. The signature of any party to any counterpart shall be deemed a signature to, and may be appended to, any other counterpart. 

9.11. Estoppel Certificate. Each Member shall, within ten (10) days after written request by any Member or the Manager,
deliver to the requesting Person a certificate stating, to the Member’s knowledge, that: (i) this Agreement is in full force and effect; (ii) this Agreement has not been modified except by any instrument or instruments identified in
the certificate; and (iii) there is no default hereunder by the requesting Person, or if there is a default, the nature and extent thereof. 

 9.12. No Partnership Intended for Nontax Purposes. The Members have formed the
Company under the Act, and expressly do not intend hereby to form a partnership under either the Oklahoma Revised Uniform Partnership Act or the Oklahoma Revised Uniform Limited Partnership Act. The Members do not intend to be partners to one
another, or partners to any third party. To the extent any Member, by word or action, represents to another person that any other Member is a partner or that the Company is a partnership, the Member making such wrongful representation shall be
liable to any other Member who incurs personal liability by reason of such representation. No statement or action of any Member that occurred prior to the formation of the Company shall be construed to constitute the formation of a partnership of
that Member with any other Member or any third party. 
 [Signature page follows.] 

 EXECUTED as of the date first stated above: 

 

					
	MEMBER:
	
	GRAYMARK HEALTHCARE, INC., an Oklahoma corporation
		
	By:	 	  

		 	Stanton Nelson, CEO
	
	FOUNDATION HEALTH ENTERPRISES LLC, an Oklahoma limited liability company
	By:	 	FHE MANAGERS, LLC,a Delaware limited liability company,
		 	Its Manager
			
		 	By:	 	  

		 	Name:	 	  

		 	Its: Manager

 Exhibit A 

Membership Interests of Common Equity Holders 
  

					
	 Member
	  	Percentage of
Common Equity
Membership Interest	 
	 Graymark Healthcare, Inc.
	  	 	100	% 

 Exhibit B 

Membership Interests Held by the Company 

100% Membership Interests in Foundation Surgery Affiliates, LLC 

100% Membership Interests in Foundation Surgical Hospital Affiliates, LLC 

 Exhibit “E” 

FSA and FSHA Financial Information 

 Foundation Surgery Affiliates, LLC 

Balance Sheet 
 September 30, 2012 

 

					
	ASSETS	  			
	 Current Assets
	  			
	 Cash
	  	$	1,950,604	  
		  	  
	  
	 
	 Accounts Receivable:
	  			
	 Due from Centers
	  	 	459,773	  
	 Miscellaneous
	  	 	41,518	  
		  	  
	  
	 
	 Total Accounts Receivable
	  	 	501,291	  
		  	  
	  
	 
	 Deposits, Prepaids and Adv.
	  	 	90,550	  
		  	  
	  
	 
	 Total Current Assets
	  	 	2,542,445	  
		  	  
	  
	 
	 Property & Equipment:
	  			
	 Building Improvements
	  	 	219,523	  
	 Computer Equipment & Software
	  	 	1,148,129	  
	 Furniture, Fixtures, and Equipment
	  	 	297,451	  
		  	  
	  
	 
	 Total Property & Equipment
	  	 	1,665,103	  
	 Less Accumulated Depreciation
	  	 	(1,428,685	) 
		  	  
	  
	 
	 Property & Equipment - Net
	  	 	236,418	  
		  	  
	  
	 
	 Investment in Management Contracts
	  	 	2,325,229	  
		  	  
	  
	 
	 Investment in Centers
	  	 	7,307,080	  
		  	  
	  
	 
	 Total Assets
	  	$	12,411,171	  
		  	  
	  
	 

 

					
	LIABILITIES AND EQUITY	  			
	 Current Liabilities
	  			
	 Payables and Accruals:
	  			
	 Vendors Payable
	  	$	145,914	  
	 Other Payables
	  	 	521,471	  
	 Salaries Payable
	  	 	385,996	  
		  	  
	  
	 
	 Total Payables and Accruals
	  	 	1,053,381	  
		  	  
	  
	 
	 Current Portion of Long Term debt:
	  			
	 Total Current Portion of Long Term Debt
	  	 	1,240,103	  
	 Preferred Membership Interest Payable
	  	 	2,790,340	  
		  	  
	  
	 
	 Total Current Liabilities
	  	 	5,083,824	  
		  	  
	  
	 
	 Long Term Debt:
	  			
	 Total Long Term Debt
	  	 	4,298,146	  
		  	  
	  
	 
	 Preferred Membership Payable
	  	 	7,381,643	  
		  	  
	  
	 
	 Total Liabilities
	  	 	16,763,613	  
		  	  
	  
	 
	 Equity:
	  			
	 Retained Earnings
	  	 	1,727,070	  
	 Contributed Capital
	  	 	(287,764	) 
	 Distributions to Related Entities
	  	 	(8,300,712	) 
	 Current Year Income
	  	 	2,508,964	  
		  	  
	  
	 
	 Total Equity
	  	 	(4,352,443	) 
		  	  
	  
	 
	 Total Liabilities & Equity
	  	$	12,411,171	  
		  	  
	  
	 

 
 

 Foundation Surgery Affiliates, LLC 

Statement of Income 
 For The Nine Months Ended
September 30, 2012 
  

					
	 Revenues
	  			
	 Management Fees
	  	$	3,357,058	  
	 Profit Distributions
	  	 	3,963,350	  
	 Miscellaneous income
	  	 	105,194	  
		  	  
	  
	 
	 Total Revenues
	  	 	7,425,602	  
		  	  
	  
	 
	 Expenses
	  			
	 Salaries & Benefits
	  	 	2,435,921	  
	 Travel & Entertainment
	  	 	119,894	  
	 Equipment Rental
	  	 	67,207	  
	 Professional Fees
	  	 	387,354	  
	 Legal Fees
	  	 	124,198	  
	 Repairs & Maintenance
	  	 	57,583	  
	 Rent, Telephone & Insurance
	  	 	205,948	  
	 Other
	  	 	335,601	  
		  	  
	  
	 
	 Total Expenses
	  	 	3,733,706	  
	 Gain (Loss) on Sale of Investments in Affiliates
	  	 	347,702	  
		  	  
	  
	 
	 Ebitda
	  	 	4,039,598	  
	 Other Income/(Expense)
	  			
	 Interest Expense
	  	 	(1,007,609	) 
	 Interest Income
	  	 	2,061	  
	 Depreciation Expense
	  	 	(525,106	) 
		  	  
	  
	 
	 Net Income
	  	$	2,508,964	  
		  	  
	  
	 

 Foundation Surgical Hospital Affilates, LLC 

Balance Sheet 
 September 30, 2012 

 

					
	ASSETS	  			
	 Current Assets
	  			
	 Cash
	  	$	733,471	  
	 Restricted Cash
	  	 	400,000	  
		  	  
	  
	 
		  	 	1,133,471	  
		  	  
	  
	 
	 Accounts Receivable:
	  			
	 Due from Centers
	  	 	1,548,564	  
	 A/R Patients
	  	 	4,352,687	  
	 Miscellaneous
	  	 	83,735	  
		  	  
	  
	 
	 Total Accounts Receivable
	  	 	5,984,985	  
		  	  
	  
	 
	 Deposits, Prepaids and Adv.
	  	 	397,478	  
		  	  
	  
	 
	 Inventory
	  	 	776,189	  
		  	  
	  
	 
	 Total Current Assets
	  	 	8,292,123	  
		  	  
	  
	 
	 Notes Receivable
	  	 	—  	  
		  	  
	  
	 
	 Property & Equipment:
	  			
	 Building Improvements
	  	 	93,972	  
	 Medical Equipment
	  	 	10,293,142	  
	 Computer Equipment & Software
	  	 	5,788,681	  
	 Furniture, Fixtures, and Equipment
	  	 	810,540	  
		  	  
	  
	 
	 Total Property & Equipment
	  	 	16,986,335	  
	 Less Accumulated Depreciation
	  	 	(13,487,061	) 
		  	  
	  
	 
	 Property & Equipment - Net
	  	 	3,499,275	  
		  	  
	  
	 
	 Investment in Facilities
	  	 	(2,806,406	) 
		  	  
	  
	 
	 Other Investments
	  	 	374,183	  
		  	  
	  
	 
	 Total Assets
	  	$	9,359,175	  
		  	  
	  
	 

 

					
	LIABILITIES AND EQUITY	  			
	 Current Liabilities
	  			
	 Payables and Accruals
	  			
	 Vendors Payable
	  	$	3,091,526	  
	 Salaries Payable
	  	 	1,026,469	  
	 Other Payables
	  	 	2,976,120	  
		  	  
	  
	 
	 Total Payables and Accruals
	  	 	7,094,115	  
		  	  
	  
	 
	 Current Portion - Long Term Debt:
	  			
	 Hospital
	  	 	2,507,843	  
	 Corporate
	  	 	756,446	  
		  	  
	  
	 
	 Total Current Portion - Long Term Debt:
	  	 	3,264,289	  
		  	  
	  
	 
	 Preferred Member Interest Payable
	  	 	702,079	  
		  	  
	  
	 
	 Total Current Liabilities
	  	 	11,060,483	  
		  	  
	  
	 
	 Deferred Hospital & Healthplex Rent
	  	 	1,615,506	  
		  	  
	  
	 
	 Long Term Dept:
	  			
	 Hospital
	  	 	3,111,038	  
	 Corporate
	  	 	409,061	  
		  	  
	  
	 
	 Total Long Term Debt
	  	 	3,520,099	  
		  	  
	  
	 
	 Preferred Member Payable
	  	 	3,690,822	  
		  	  
	  
	 
	 Total Liabilities
	  	 	19,886,910	  
	 Equity
	  			
	 Retained Earnings
	  	 	(24,111,434	) 
	 Paid in Capital
	  	 	8,636,162	  
	 Minority Interest
	  	 	574,572	  
	 Current Year Income
	  	 	1,084,769	  
	 Distributions to Related entities
	  	 	4,026,847	  
	 Less Dividends
	  	 	(738,652	) 
		  	  
	  
	 
	 Total Equity
	  	 	(10,527,734	) 
		  	  
	  
	 
	 Total Liabilities & Equity
	  	$	9,359,175	  
		  	  
	  
	 

 
 

 Foundation Surgical Hospital Affilates, LLC 

Statement of Income 
 For The Nine Months Ended
September 30, 2012 
  

					
	 Revenues
	  			
	 Management Fees
	  	$	1,811,998	  
	 CBO Income
	  	 	806,994	  
	 Credentialing Income
	  	 	101,355	  
	 Profit Distributions
	  	 	1,075,393	  
	 Miscellaneous Income
	  	 	105,119	  
	 Net Patient Revenue
	  	 	24,271,115	  
		  	  
	  
	 
	 Total Revenues
	  	 	28,175,005	  
		  	  
	  
	 
	 Expenses
	  			
	 Medical Supplies
	  	 	6,836,004	  
	 Salaries & Benefits
	  	 	7,810,158	  
	 Travel & Entertainment
	  	 	91,145	  
	 Equipment Rental
	  	 	323,819	  
	 Professional Fees
	  	 	4,913,874	  
	 Legal Fees
	  	 	507,951	  
	 Repairs & Maintenance
	  	 	320,567	  
	 Rent, Telephone & Insurance
	  	 	2,645,894	  
	 Other
	  	 	1,469,187	  
		  	  
	  
	 
	 Total Expenses
	  	 	24,915,597	  
		  	  
	  
	 
	 Non-Operating Revenue
	  	 	627,646	  
	 Minority Interest
	  	 	(1,500,111	) 
		  	  
	  
	 
	 Ebitda 
	  	 	2,383,943	  
	 Other Income/(Expenses)
	  			
	 Interest Expense
	  	 	(698,478	) 
	 Interest Income
	  	 	135,544	  
	 Franchise Taxes
	  	 	(94,996	) 
	 Depreciation Expense
	  	 	(641,244	) 
		  	  
	  
	 
	 Net Income
	  	$	1,054,769	  
		  	  
	  
	 

 Exhibit “F” 

Graymark Business 

Graymark is one of the largest providers of care management solutions to the sleep disorder market based on number of independent sleep care
centers and hospital sleep diagnostic programs operated in the United States. Graymark provides a comprehensive diagnosis and care management solution for patients suffering from sleep disorders. 

Sleep Management Market 
 Graymark
believes that the market for sleep management solutions is large and growing with no clear market leader. A number of factors support the future growth of this market: 
  

	 	•	 	Large and undiagnosed population of patients that suffer from sleep disorders. There are a substantial number of undiagnosed patients who could benefit from diagnosis and treatment of sleep disorders. There are
an estimated 50 million Americans that suffer from chronic, long-term sleep disorders, according to the National Institutes of Health, or NIH. There are over 80 different sleep disorders, including obstructive sleep apnea, or OSA,
insomnia, narcolepsy and restless legs syndrome. The primary focus of Graymark’s business is OSA, which the National Sleep Foundation estimates occur in at least 18 million Americans. Moreover, according to the American College of
Physicians, about 80% of persons with sleep apnea go undiagnosed. 

  

	 	•	 	Increasing awareness of diagnosis and treatment options, particularly for OSA. Graymark believes there is an increasing awareness among the U.S. population and physicians in particular about the health risks and
the availability and benefits of treatment options for sleep disorders. Of significant importance, OSA can have serious effects on people’s health and personal lives. OSA is known to increase the risk for several serious health conditions,
including obesity, high blood pressure, heart disease, stroke, diabetes, depression and sexual dysfunction. Additionally, OSA may result in excessive daytime sleepiness, memory loss, lack of concentration and irritability. OSA and its effects may
increase the risk for automobile accidents and negatively affect work productivity and personal relationships. In addition, as physicians become aware of the links between OSA and other serious health conditions, physicians are increasingly
referring patients for sleep studies. 

  

	 	•	 	Growth in obesity rates. OSA is found in people of every age and body type, but is most commonly found in the middle-aged, obese population. Obesity is found in approximately 72 million adults in America and
is a growing problem in the United States. By 2020, the number of obese Americans is expected to be approximately 103 million. Obesity exacerbates OSA by enlarging the upper airway soft tissue structures and narrowing the airway. Not only does
obesity contribute to sleep disorders such as OSA, but sleep disorders can also contribute to obesity. We believe individuals suffering from OSA generally have less energy and ability to exercise or keep a strict diet. Medical studies have also
shown that sleep disorders can impair metabolism and disrupt hormone levels, promoting weight gain. 

  

	 	•	 	Large aging population. An aging U.S. population, led by approximately 78 million baby-boomers, is becoming increasingly at risk for OSA. As their soft palates enlarge, their pharyngeal fat pads increase in
size and the shape of bony structures around the airway change. 

 Graymark believes these factors present a significant business opportunity for Graymark because
Graymark provides a complete continuum of care for those who suffer from OSA – from initial diagnosis to treatment with a continuous positive airway pressure, or CPAP, device to providing ongoing CPAP supplies and long-term follow-up care.

  

	 	•	 	The amount being spent on sleep disorder diagnosis and treatment is increasing. A 2010 Frost & Sullivan report estimated the U.S. sleep diagnostic market was $1.4 billion in 2008, and that it will grow to
$3.4 billion by 2015 for a compound annual growth rate of 14.3%. 

  

	 	•	 	The sleep diagnostic market is highly fragmented. Graymark’s presence as one of the largest overall providers of sleep diagnostic services with 103 total diagnostic and therapy locations comprised of
21 independent sleep care centers and 82 hospital sleep diagnostic programs, out of a total Graymark estimate includes 4,000 sleep clinics in the United States, illustrates the level of fragmentation in the market. Only a limited
number of companies provide a comprehensive solution which includes initial diagnosis to treatment with a CPAP device and the provision of ongoing CPAP supplies and long-term follow-up care. 

Graymark Sleep Management Solution 

The Graymark sleep management solution is driven by the Graymark clinical approach to managing sleep disorders. The Graymark clinical model is
led by the Graymark staff of medical directors who are board-certified physicians in sleep medicine, who oversee the entire life cycle of a sleep disorder from initial referral through continuing care management. The Graymark approach to managing
the care of Graymark patients diagnosed with OSA is a key differentiator for Graymark. Five key elements support the Graymark clinical approach: 
  

	 	•	 	Referral: The Graymark medical directors, who are board-certified physicians in sleep medicine, have forged strong relationships with referral sources, which include primary care physicians, as well as
physicians from a wide variety of other specialties and dentists. 

  

	 	•	 	Diagnosis: Graymark owns and operates sleep testing clinics that diagnose the full range of sleep disorders including OSA, insomnia, narcolepsy and restless legs syndrome. 

 

	 	•	 	CPAP Device Supply: Graymark sells CPAP devices, which are used to treat OSA. 

  

	 	•	 	Re-Supply: Graymark offers a re-supply program for Graymark patients and other CPAP users to obtain the required components for their CPAP devices that must be replaced on a regular basis. 

 

	 	•	 	Care Management: Graymark provides continuing care to the Graymark patients led by our medical directors who are board-certified physicians in sleep medicine and their staff. 

The Graymark clinical approach increases the long-term compliance of Graymark patients, and enables Graymark to manage a patient’s sleep
disorder care throughout the lifecycle of the disorder, thereby allowing Graymark to generate a long-term, recurring revenue stream. Graymark generates revenues via three primary sources: providing the diagnostic tests and related studies for sleep
disorders through the Graymark sleep diagnostic centers, the sale of CPAP devices, and the ongoing re-supply of components of the CPAP device that need to be replaced. In addition, as a part of the Graymark ongoing care management program, Graymark
monitors the patient’s sleep disorder and as the patient’s medical condition changes, Graymark is paid for additional diagnostic tests and studies. 

 In addition, Graymark believes that the Graymark clinical approach to comprehensive patient care
provides higher quality of care and achieves higher patient compliance. Graymark believes that higher compliance rates are directly correlated to higher revenue generation per patient compared to our competitors through increased utilization of the
Graymark patient reorder supply program, or PRSP, and a greater likelihood of full reimbursement from federal payors and those commercial carriers who have adopted federal payor standards. 

Referral and Diagnosis 
 Patients at risk
for, or suspected of suffering from, a sleep disorder are referred to one of the Graymark sleep clinics by independent physicians, dentists, group practices, or self-referrals. At the Graymark independent sleep care centers and hospital sleep
diagnostic programs, which Graymark refers to as our sleep clinics, Graymark administers an overnight polysomnogram, or sleep study, to determine if the Graymark patients suffer from a sleep disorder. The Graymark medical directors provide a
diagnosis and comprehensive report to the referring physician based on analysis of the patient’s sleep study results. 
 CPAP Device Supply 

If the physician determines the patient suffers from OSA following the review of the sleep study results, then the patient is generally
prescribed the American Academy of Sleep Medicine’s, or AASM, preferred method of treatment, which is with a CPAP device. Patients return to the Graymark clinic for an overnight study to determine the optimal air pressure to prescribe with the
CPAP device. Sometimes, both the diagnosis and air pressure study are done in one night. Regulatory restrictions prevent Medicare from making payments to sleep diagnostics centers that sell CPAP devices unless the diagnosis has been made by a
medical director who is board-certified in sleep medicine or who meets other specified criteria. All of the sleep studies Graymark conducts, except for those conducted at one of Graymark non-accredited centers, qualifies Graymark to receive Medicare
reimbursement for the sale of CPAP devices. 
 Re-supply 

In addition to selling CPAP devices to people with OSA, Graymark offers the Graymark patient reorder supply program, or PRSP. The PRSP
periodically supplies the components of the CPAP device that must be regularly replaced (such as masks, hoses, filters, and other parts) to the Graymark patients and other CPAP users. This enables them to better maintain their CPAP devices,
increasing the probability of ongoing compliance and a better long-term clinical outcome and providing Graymark with a long-term recurring revenue stream. 

Care Management 
 The Graymark thorough
wellness and continuing care program led by the Graymark medical staff provides the greatest opportunity for Graymark patients to use their CPAP devices properly and stay compliant. After the initial CPAP device set-up, the Graymark clinical staff
contacts the patient regularly during the initial six months (at 48 hours, two weeks, two months and six months) and each six months thereafter to enhance patient understanding and to ensure the greatest chance for the short- and long-term
success for the patient. Most importantly, where Graymark has the program in place, the Graymark medical staff has an in-person visit with the patient and their CPAP device approximately 45 days after the initial set-up. The purpose of the
visit is to verify initial compliance and to enhance compliance by assuring proper fit and feel of the CPAP device (usually the mask), determining if there are any medical impediments to compliance (such as untreated allergies), and answering any
questions about the operation or care of the equipment. Graymark also works closely with the patient’s physicians to aid in their follow-up care and monitoring of the treatment. 

 Recently, as the public and medical communities have become increasingly aware of the sleep
diagnostic and treatment markets, federal and state lawmakers and regulators have taken a greater interest in implementing stricter criteria to ensure a high standard of care. Federal payors, and commercial carriers who have adopted similar
standards, will only pay CPAP providers for equipment over a 13-month period in equal installments. Payment is stopped if the CPAP provider cannot document patient compliance levels that meet their established standards within the first 90 days
after the initial set-up. 

 Exhibit “G” 

Graymark Financial Information 

 GRAYMARK HEALTHCARE, INC. 

Consolidated Condensed Balance Sheets 

(Unaudited) 
  

									
	 	  	September 30,
2012	 	 	December 31,
2011	 
	 ASSETS
	  				 			
	 Cash and cash equivalents
	  	$	113,327	  	 	$	4,915,032	  
	 Accounts receivable, net of allowances for contractual adjustments and doubtful accounts of $3,160,741 and $3,100,612,
respectively
	  	 	3,264,556	  	 	 	3,095,447	  
	 Inventories
	  	 	375,690	  	 	 	427,039	  
	 Current assets from discontinued operations
	  	 	34,486	  	 	 	1,059,023	  
	 Other current assets
	  	 	718,778	  	 	 	274,049	  
		  	  
	  
	 	 	  
	  
	 
	 Total current assets
	  	 	4,506,837	  	 	 	9,770,590	  
		  	  
	  
	 	 	  
	  
	 
	 Property and equipment, net
	  	 	3,128,640	  	 	 	2,935,992	  
	 Intangible assets, net
	  	 	1,092,591	  	 	 	1,214,633	  
	 Goodwill
	  	 	10,688,571	  	 	 	13,729,571	  
	 Other assets from discontinued operations
	  	 	—  	  	 	 	54,255	  
	 Other assets
	  	 	266,408	  	 	 	280,289	  
		  	  
	  
	 	 	  
	  
	 
	 Total assets
	  	$	19,683,047	  	 	$	27,985,330	  
		  	  
	  
	 	 	  
	  
	 
	 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
	  				 			
	 Liabilities
	  				 			
	 Accounts payable
	  	$	2,291,735	  	 	$	782,367	  
	 Accrued liabilities
	  	 	2,719,741	  	 	 	2,262,096	  
	 Current portion of long-term debt
	  	 	18,423,280	  	 	 	2,071,597	  
	 Current liabilities from discontinued operations
	  	 	580,391	  	 	 	723,274	  
		  	  
	  
	 	 	  
	  
	 
	 Total current liabilities
	  	 	24,015,147	  	 	 	5,839,334	  
		  	  
	  
	 	 	  
	  
	 
	 Long-term debt, net of current portion
	  	 	158,925	  	 	 	17,203,691	  
	 Other liabilities
	  	 	117,282	  	 	 	117,282	  
		  	  
	  
	 	 	  
	  
	 
	 Total liabilities
	  	 	24,291,354	  	 	 	23,160,307	  
	 Equity
	  				 			
	 Graymark Healthcare shareholders’ equity (deficit):
	  				 			
	 Preferred stock $0.0001 par value, 10,000,000 authorized; no shares issued and outstanding
	  	 	—  	  	 	 	—  	  
	 Common stock $0.0001 par value, 500,000,00 shares authorized; 15,195,634 and issued and outstanding respectively
	  	 	1,520	  	 	 	1,507	  
	 Paid-in capital
	  	 	40,214,976	  	 	 	40,080,923	  
	 Accumulated deficit
	  	 	(44,536,078	) 	 	 	(35,113,386	) 
		  	  
	  
	 	 	  
	  
	 
	 Total Graymark Healthcare shareholders’ equity (deficit)
	  	 	(4,319,582	) 	 	 	4,969,044	  
	 Noncontrolling interest
	  	 	(288,725	) 	 	 	(144,021	) 
		  	  
	  
	 	 	  
	  
	 
	 Total equity (deficit)
	  	 	(4,608,307	) 	 	 	4,825,023	  
		  	  
	  
	 	 	  
	  
	 
	 Total liabilities and shareholders’ equity (deficit)
	  	$	19,683,047	  	 	$	27,985,330	  
		  	  
	  
	 	 	  
	  
	 

 GRAYMARK HEALTHCARE, INC. 

Consolidated Condensed Statements of Operations 

For the Nine Months Ended September 30, 2012 and 2011 

(Unaudited) 
  

									
	 	  	2012	 	 	2011	 
	 Net Revenues:
	  				 			
	 Services
	  	$	9,711,137	  	 	$	9,388,267	  
	 Product sales
	  	 	3,254,655	  	 	 	3,707,840	  
		  	  
	  
	 	 	  
	  
	 
		  	 	12,965,792	  	 	 	13,096,107	  
		  	  
	  
	 	 	  
	  
	 
	 Cost of Services and Sales:
	  				 			
	 Cost of Services
	  	 	4,133,334	  	 	 	3,814,933	  
	 Cost of sales
	  	 	1,210,069	  	 	 	1,259,404	  
		  	  
	  
	 	 	  
	  
	 
		  	 	5,343,403	  	 	 	5,074,337	  
		  	  
	  
	 	 	  
	  
	 
	 Gross Margin
	  	 	7,622,389	  	 	 	8,021,770	  
		  	  
	  
	 	 	  
	  
	 
	 Operating Expenses:
	  				 			
	 Selling general and administrative
	  	 	10,989,745	  	 	 	10,039,289	  
	 Bad debt expense
	  	 	1,024,207	  	 	 	628,215	  
	 Impairment of goodwill
	  	 	3,041,000	  	 	 	—	  
	 Depreciation and amortization
	  	 	920,905	  	 	 	836,936	  
		  	  
	  
	 	 	  
	  
	 
		  	 	15,975,857	  	 	 	11,504,440	  
		  	  
	  
	 	 	  
	  
	 
	 Other (Expense):
	  				 			
	 Interest expense, net
	  	 	(843,562	) 	 	 	(975,735	) 
	 Other expense
	  	 	—	  	 	 	(12,234	) 
		  	  
	  
	 	 	  
	  
	 
	 Net other (expense)
	  	 	(843,562	) 	 	 	(987,969	) 
		  	  
	  
	 	 	  
	  
	 
	 Income (loss) from continuing operations, before taxes
	  	 	(9,197,030	) 	 	 	(4,470,639	) 
	 (Provision) benefit for income taxes
	  	 	—	  	 	 	(10,494	) 
		  	  
	  
	 	 	  
	  
	 
	 Income (loss) from continuing operations, net of taxes
	  	 	(9,197,030	) 	 	 	(4,481,133	) 
	 Income (loss) from discontinued operations, net of taxes
	  	 	(364,172	) 	 	 	376,478	  
		  	  
	  
	 	 	  
	  
	 
	 Net income (loss)
	  	 	(9,561,202	) 	 	 	(4,104,655	) 
	 Less: Net income (loss) attributable to noncontrolling interests
	  	 	(138,510	) 	 	 	(130,626	) 
		  	  
	  
	 	 	  
	  
	 
	 Net income (loss) attributable to Graymark Healthcare
	  	$	(9,422,692	) 	 	$	(3,974,029	) 
		  	  
	  
	 	 	  
	  
	 
	 Earnings per common share (basic and diluted):
	  				 			
	 Net income (loss) from continuing operations
	  	$	(0.60	) 	 	$	(0.42	) 
	 Income (loss) from discontinued operations
	  	 	(0.02	) 	 	 	0.04	  
		  	  
	  
	 	 	  
	  
	 
	 Net income (loss) per share
	  	$	(0.62	) 	 	$	(0.38	) 
		  	  
	  
	 	 	  
	  
	 
	 Weighted average number of common shares outstanding
	  	 	15,121,218	  	 	 	10,332,069	  
		  	  
	  
	 	 	  
	  
	 
	 Weighted average number of diluted shares outstanding
	  	 	15,121,218	  	 	 	10,332,069	  
		  	  
	  
	 	 	  
	  
	 

 Exhibit “H” 

Subscription Materials 

 152 

Class B Units 
 at

 $105,000.00 per Unit 

Foundation Health Enterprises LLC 

Subscription Materials 
 These
subscription materials (the “Subscription Materials”) are to be used to subscribe for Class B membership interests consisting of a one percent (1%) Class B membership interest in Foundation Health Enterprises, LLC, a Delaware limited
liability company (the “Company”) representing one Class B membership unit in the Company and 10,000 shares of restricted shares of common stock of Graymark Healthcare, Inc., (“Class B Units”) offered for sale pursuant to
Section 4(2) of the Securities Act of 1933, as amended, and Rule 506 promulgated thereunder. The Class B units are being offered for sale in units (each, a “Unit”) or fractional part thereof. These Subscription Materials are intended
for use only by the party to whom they were delivered by the Company for the purpose of such party’s possible investment in the Class B Units. By acceptance of the Subscription Materials said party acknowledges that the Subscription Materials
may not be distributed or reproduced, in whole or in part, or used for any other purpose without the express written consent of the Company. The Company reserves the right to request at any time that the Subscription Materials be returned to the
Company. 
 SUBSCRIPTION MATERIALS 

TO SUBSCRIBE: 
 PLEASE REMIT AN
ORIGINALLY EXECUTED COPY OF THESE SUBSCRIPTION MATERIALS TO: FOUNDATION HEALTH ENTERPRISES LLC, 210 PARK AVENUE #1350, OKLAHOMA CITY, OK 73102 

March 18, 2013 

Foundation Health Enterprises LLC 

 INSTRUCTIONS FOR COMPLETION AND EXECUTION OF SUBSCRIPTION MATERIALS 

- PLEASE READ CAREFULLY - 
 All of the
enclosed documents should be completed in accordance with these instructions and returned to the Company at 210 Park Avenue #1350, Oklahoma City, Ok 73102. For any questions, please contact Stanton Nelson, the Company’s Chief
Executive Officer, at (405) 601-5390 or by e-mail at Stanton Nelson <snelson@grmh.com> 
 The following procedure should be followed in
order to assure proper execution of the documents: 
  

	A.	Investor Questionnaire (pages 1-13) 

  

	 	1.	Complete thoroughly either Section I on pages 4-7 or Section II on pages 8-11, whichever is applicable. 

  

	 	2.	On page 12, date and sign on Signature of Subscriber line and otherwise complete the requested information. The signature of and certain information from your Investor Representative (if any) is also required on page
12. If the Subscriber is a corporation or a partnership, a Notary Public must complete and sign on page 13. 

  

	B.	Investor Representative Questionnaire (pages 14-18) 

  

	 	1.	The individual (if any) designated as your Investor Representative must complete all questions on pages 15, 16, 17 and 18. The signature of and certain information from your Investor Representative (if any) is required
on pages 17 and 18. 

  

	 	2.	The signature or acknowledgment of Subscriber is also required on the designated line on page 18. 

  

	C.	Subscription Agreement and Operating Agreement Subscription Page (pages 19-27) 

  

	 	1.	Fill in all information requested on pages 26 and 27. 

  

	 	2.	The signature of the subscriber is required on page 27. 

  

	D.	Joinder of Member to Second Amended and Restated Operating Agreement (page 28) 

  

	 	1.	Fill in the total dollar amount of your subscription where indicated on page 28. 

  

	 	2.	Date, sign and complete the address information on page 28. 

  
 1 

 PART A 

INVESTOR QUESTIONNAIRE 
 (pages
3-13) 
  

	 	1.	Complete either Section I on pages 4-7 or Section II on pages 8-11, whichever is applicable. 

  

	 	2.	On page 12, date and sign on Signature of Subscriber line. The signature of your Investor Representative (if any) is also required on page 12. If the Subscriber is a corporation or a partnership, a Notary Public must
complete and sign on page 13. 

 Please print or type your answers. If the answer to any question is “No” or “Not
Applicable,” please so state. Please provide information for every Subscriber, using a separate questionnaire for each. If your spouse is not a co-subscriber and you have listed property held in joint tenancy or tenancy-in-common, please
indicate your share of such property. Please do not confuse individual assets or income with assets or income of a trust, corporation or partnership in which you have an interest; do, however, list the value of your interest in such entities. 

  
 2 

 Foundation Health Enterprises LLC 

INVESTOR QUESTIONNAIRE 

ALL INFORMATION HEREIN WILL BE TREATED CONFIDENTIALLY UNLESS REQUIRED 

BY COURT ORDER OR OTHERWISE REQUIRED BY THE COMPANY TO 

DEMONSTRATE THE AVAILABILITY OF EXEMPTIONS FROM THE REGISTRATION 

REQUIREMENTS OF RELEVANT FEDERAL AND STATE LAWS GOVERNING THE 

OFFER AND SALE OF THE SECURITIES. 
 Foundation
Health Enterprises LLC 
 210 Park Avenue #1350 
 Oklahoma City,
Ok 73102 
 Gentlemen: 
 The information
contained herein is being furnished to the Company in order for it to determine whether the attached Subscription Agreement to subscribe for Class B membership interests consisting of a one percent (1%) Class B membership interest in Foundation
Health Enterprises, LLC, a Delaware limited liability company (the “Company”) representing one Class B membership unit in the Company and 10,000 shares of restricted shares of common stock of Graymark Healthcare, Inc., (“Class B
Units”), by the undersigned, either individually or as a partner or member of an investor which is a partnership or limited liability company, may be accepted by you in accordance with the requirements of the Securities Act of 1933, as amended
(the “Act”), and Regulation D promulgated thereunder (“Regulation D”). Accordingly, we acknowledge that the Company will rely on the information contained herein for purposes of determining whether the undersigned is an
Accredited Investor or Non-Accredited Investor in accordance with Regulation D. 
 I understand that my answers will at all times be kept
confidential unless required by court order or otherwise required by the Company to demonstrate the availability of exemptions from the registration requirements of relevant federal and state laws governing the offer and sale of the Units.
Furthermore, by signing this Investor Questionnaire I agree that the management of the Company (the “Management”) may present this Investor Questionnaire to such parties as they deem appropriate if called upon under law to establish the
availability under federal or state laws of an exemption from registration of the offer and sale of the Units. 

  
 3 

 INDIVIDUAL SUBSCRIBERS MUST COMPLETE SECTION I 

AND 
 CORPORATIONS,
PARTNERSHIPS, LLCS AND OTHER 
 ENTITY SUBSCRIBERS MUST COMPLETE SECTION II 

- ALL QUESTIONS IN THE APPROPRIATE SECTION MUST BE ANSWERED - 

SECTION I. QUESTIONS FOR INDIVIDUAL SUBSCRIBERS 

1.
Name:                                        
                                 
                                         
                       Age:                 
                 
 U.S. Citizen:    
Yes                No             

Number of Dependents:                    Social
Security
No.:                                        
                                         

2. Permanent residence address (other than Post Office Box), including telephone number: 

 
  
  

 
 3.(a) Name of current business,
business address and telephone number: 
  
  

 
  

(b) Type of current business position held, responsibilities involved in position and number of years employed in position: 

 
  
  

 
  

 
 4. Position(s) held during past five
(5) years, responsibilities involved and number of years employed or, if retired, position held in previous business, responsibilities involved in position and number of years employed in
position:                                       
  
  
  

 
  
  

 
  

 
  

 
 5. Send correspondence
to:            
Home:                Office:             

Other:                       
                                         
                                         
                                         
                                         
                                         
                  

  
 4 

 6. Business or professional education and the degrees received are as follows: 

 

					
	School	  	Degree	  	Year Received
	  
	  	  
	  	  

	  
	  	  
	  	  

 7. Are you purchasing the Units of the Company for your own account? 

                Yes       
                 No             

If no, please specify:              
                                         
                                         
                                         
                                         
            

8. Describe any other substantial experience in business, investment or financial 
matters that enables you to evaluate the merits
and risks of this investment:                                 
                                         
                                         
                                         
                                         
       
  
  

 
  
  

 
 9. Method of Investment
Qualification: An individual will qualify as an Accredited Investor if he or she meets any one of the following requirements. Please indicate if you meet any of the following requirements: 

 

	 	(A)	I am a natural person and had an individual income in excess of $200,000 in each of the two most recent years and reasonably expect an income in excess of $200,000 in the current year. For these purposes,
“income” means my individual adjusted gross income for federal income tax purposes, plus (i) any deduction for long term capital gains; (ii) any deduction for depletion; (iii) any exclusion for interest; and (iv) any
losses allocated to me with respect to the Units. 

                Yes       
                 No             

 

	 	(B)	I am a natural person and had a joint income with my spouse in excess of $300,000 in each of the two most recent years and reasonably expect a joint income with my spouse in excess of $300,000 in the current year. For
these purposes, “income” shall be determined as set forth in Section 9 (A) above. 

                Yes       
                 No             

 

	 	(C)	I am a natural person and had an individual net worth at the time of purchase (or joint net worth with spouse) in excess of $1 million (including my home, home furnishings and automobiles). 

                Yes       
                 No             

  
 5 

	 	(D)	I am a director or executive officer of the Company. 

                Yes       
                 No             

10. Method of Investment Evaluation: Each subscriber is required to retain the services of an advisor when such prospective subscriber does
not have sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of acquiring the Units. Please indicate below if you have such knowledge and experience or, alternatively, require the
services of an advisor. 
  

	 	(A)	I have such knowledge and experience in financial matters that I am capable of evaluating the merits and risks of an investment in the Units, and will not require the services of an Investor Representative. I offer as
evidence of such knowledge and experience in these matters the information contained in this Investor Questionnaire. 

                Yes       
                 No             

 

	 	(B)	I have retained the services of an Investor Representative(s). I acknowledge the following named person(s) to be my Investor Representative(s) in connection with evaluating the merits and risks of an investment in the
Units. 

                Yes       
                 No             

Name:                   
                                         
                                         
                                         
                                         
                                  

Answer the following only if you checked “Yes” to Question 10(B): 

The above-named Investor Representative(s) has furnished to me a completed Investor Representative Questionnaire, a copy of which I reviewed prior to signing
this questionnaire and I am delivering to you herewith. I and the above-named Investor Representative(s) together have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of an
investment in the Units. 

                Yes       
                 No             

IF YOU HAVE CHECKED “YES” UNDER METHOD B, THIS INVESTMENT QUESTIONNAIRE MUST BE ACCOMPANIED BY ONE COMPLETED AND SIGNED COPY OF THE INVESTOR
REPRESENTATIVE QUESTIONNAIRE. 

  
 6 

 I understand that the Company and the Management will rely upon the accuracy and completeness of my responses to
the foregoing questions and I represent and warrant to the Company and the Management as follows: 
  

	 	(a)	The answers to the above questions are complete and correct and may be relied upon by the Company and the Management in determining whether the undersigned is an Accredited Investor. 

 

	 	(b)	I will immediately notify the Company and the Management of any material change in any statement made herein occurring prior to the closing of any subscription for the Units. 

 

	 	(c)	I am a person who is able to bear the economic risk of an investment in the Units of the size contemplated. In making this statement, consideration has been given to whether I can afford to hold the investment for an
indefinite period of time and whether I can afford a complete loss of my investment. I offer as evidence of my ability to bear the economic risk the information contained in this Investor Questionnaire. 

 

	 	(d)	The purchase of the Units will be solely for my account, and not for the account of any other person or with a view toward transfer, resale, assignment, fractionalization or distribution thereof (except as expressly
permitted in the Subscription Agreement and Power of Attorney). 

  
 7 

 SECTION II. QUESTIONS FOR CORPORATIONS, PARTNERSHIPS AND OTHER ENTITY SUBSCRIBERS 

 

	 	1.	Name and Nature (e.g., limited partnership, corporation, trust, limited liability company) of
Entity:                                        
                                         
                                         
                           

  

	 	2.	Date of
Organization:                                       
                                         
                                         
    

  

	 	3.	State of
Organization:                                       
                                         
                                         
    

  

	 	4.	Taxpayer Identification
No.:                                        
                                         
                                  

 

	 	5.	Principal Business
Address:                                       
                                         
                                   

 

	 	6.	Telephone:
(    )                                    
                                         
                                         
                 

  

	 	7.	Send Correspondence to Principal
Office:                                        
  Other: (see below)                      

Other
Address:                                       
                                         
                                         
                        
  

                        
                                         
                                         
                                         
                      
  

	 	8.	Accredited Investor Suitability Requirements. 

  

	 	(A)	Has the subscribing corporation, partnership, employee benefit plan, individual retirement account or other entity been formed for the specific purpose of investing in the Units? 

Yes                    No 
            
  

	 	(B)	If your answer to question A is “No,” INITIAL OR CHECK whichever of the following statements is applicable to the subscribing entity; if your answer to question A is “Yes,” the subscribing
entity must be able to certify to statement (2) below in order to qualify as an “Accredited Investor.” 

  

	 	(1)	The undersigned entity certifies that it is an “Accredited Investor” because it is: 

(i) a bank as defined in Section 3(a)(2) of the Act, or a savings and loan association or other institution as defined in
Section 3(a)(5)(A) of the Act, whether acting in an individual or fiduciary capacity; 

Yes                    No 
            
 (ii) a broker or dealer registered pursuant to
Section 15 of the Securities Exchange Act of 1934; 

Yes                    No 
            

  
 8 

 (iii) an insurance company as defined in Section 2(13) of the Act; 

Yes                    No 
            
 (iv) an investment company registered under the
Investment Company Act of 1940; 

Yes                    No 
            
 (v) a business development company as defined in
Section 2(a)(48) of the Investment Company Act of 1940; 

Yes                    No 
            
 (vi) a Small Business Investment Company licensed
by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; 

Yes                    No 
            
 (vii) a plan established by a state or political
subdivision, or any agency or instrumentality of a state or political subdivision, for the benefit of its employees provided that such employee benefit plan has total assets in excess of $5,000,000; 

Yes                    No 
            
 (viii) an employee benefit plan within the meaning
of Title I of the Employee Retirement Income Security Act of 1974, provided that the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, and the plan fiduciary is either a bank, insurance company or
registered investment adviser or provided that the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, the investment decisions are made solely by persons that are Accredited Investors (if a self-directed plan
with more than one investment account, (1) each participant must maintain a separate investment account within the plan, and (2) the funds of the separate investment accounts within the plan must not be commingled); 

Yes                    No 
            
 (ix) a private business development company as
defined in Section 202(a)(22) of the Investment Advisers Act of 1940; 

Yes                    No 
            

  
 9 

 (x) an organization described in Section 501(c)(3) of the Internal Revenue
Code of 1986, as amended, a corporation, a Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the Units, with total assets in excess of $5,000,000; or 

Yes                    No 
            
 (xi) a trust, with total assets in excess of
$5,000,000, not formed for the specific purpose of investing in the Units, whose subscription is directed by a sophisticated person as defined in Rule 506(b)(2)(ii) promulgated under the Act. 

Yes                    No 
            
 (2) The undersigned entity certifies that it is an “Accredited
Investor” because each of its Unit holders, partners or beneficiaries meets at least one of the following conditions: 

(i) The Unit holder, partner or beneficiary is a natural person and had an individual net worth at the time of subscription
for (or joint net worth with spouse) in excess of $1 million (including my home, home furnishings and automobiles). 

Yes                    No 
            
 (ii) The Unit holder, partner or beneficiary is a
natural person and had an individual income (without including any income of spouse) in excess of $200,000 (or joint income with spouse in excess of $300,000) in each of the two most recent years and reasonably expect an individual income in excess
of $200,000 (or joint income with spouse in excess of $300,000) in the current year. For these purposes, “income” means my individual adjusted gross income for federal income tax purposes, plus (i) any deduction for long term capital
gains; (ii) any deduction for depletion; (iii) any exclusion for interest; and (iv) any losses allocated to me with respect to the Units. 

Yes                    No 
            
 (iii) The Unit holder, partner or beneficiary is a
corporation, partnership, trust or other entity which meets the description of at least one of the organizations specified in statement B(1) above. 

Yes                    No 
            
 9. Is the subscribing entity registered as a bank holding company
under the Bank Holding Company Act of 1956, as amended? 

Yes                    No 
            
 10. The undersigned corporation, partnership, employee benefit plan
or individual retirement account has all requisite authority to acquire the Units hereby subscribed for and to enter into the Subscription Agreement. 

Yes                    No 
            

  
 10 

 I understand that the Company and the Management will rely upon the accuracy and completeness of my responses to
the foregoing questions and I represent and warrant to the Company and the Management as follows: 
  

	 	(a)	The answers to the above questions are complete and correct and may be relied upon by the Company and the Management in determining whether the undersigned is an Accredited Investor. 

 

	 	(b)	I will immediately notify the Company and its Management of any material change in any statement made herein occurring prior to the closing of any subscription by me of the Units. 

 

	 	(c)	I am a person who is able to bear the economic risk of an investment in the Units of the size contemplated. In making this statement, consideration has been given to whether I can afford to hold the investment for an
indefinite period of time and whether I can afford a complete loss of my investment. I offer as evidence of my ability to bear the economic risk the information contained in this Investor Questionnaire. 

 

	 	(d)	The subscription of the Units will be solely for my account, and not for the account of any other person or with a view toward transfer, resale, assignment, fractionalization or distribution thereof. 

 

	 	(e)	The Units may not be suitable for certain categories of subscribers. The Company and its Management reserve the right to make additional inquiries of any subscriber and to require additional representations prior to
accepting any such subscriber’s subscription. 

  
 11 

 IN WITNESS WHEREOF, I have executed this Investor Questionnaire this
            day of             , 2013 and declare that it is truthful and correct. 

 

					
	INDIVIDUAL SUBSCRIBERS	 		 	 CORPORATIONS, PARTNERSHIPS AND
 OTHER
ENTITIES

			
	  
	 		 	  

	Signature of Subscriber	 		 	Name of Entity Subscribing
			
		 		 	  

		 		 	Authorized Signature
			
	  
	 		 	  

	PRINT Name of Subscriber	 		 	PRINT Name and Title of Person Signing
			
	Subscriber’s Address:	 		 	Subscriber’s Address:
			
	  
	 		 	  

			
	  
	 		 	  

			
	  
	 		 	  

 The undersigned Investor Representative hereby certifies that he or she has reasonable grounds to believe the
above Investor is a person who is able to bear the economic risk of an investment in the Units and that the above information has been properly completed. 
  

	
	   

	Signature of Investor Representative
	
	   

	PRINT Investor Representative Name
	
	 Investor Representative’s

    Office Address:

	
	    
	
	    
	
	    
	
	(    )
	Office Telephone Number

  
 12 

 ACKNOWLEDGEMENT FOR CORPORATE SUBSCRIBER 

(Individual Subscribers Need Not Use a Notary) 
  

			
	STATE OF                                	  	)
		  	) SS
	COUNTY OF                            	  	)

 On this             day of
            , 2013, before me personally appeared             to me known, who, being first by me duly sworn, did depose and say
that (s)he resides at             that (s)he is the             of
            , the corporation described in and which executed the above instrument; that [the corporation has no seal]* [(s)he knows the seal of said corporation; that the seal affixed to
said instrument is such corporate seal; that it is so affixed by order of the Board of Directors of said corporation]*, and that (s)he signed his(her) name thereto by order of said corporation’s Board of Directors. 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. 

 

	
	  

	Notary Public:
	  
 My Commission Expires:

 [SEAL] 

 

	*	Strike out whichever bracketed clause does not apply. 

  
 13 

 PART B 

INVESTOR REPRESENTATIVE QUESTIONNAIRE 

(pages 15-18) 
  

	1.	The individual (if any) designated as your Investor Representative must complete all questions on pages 15, 16, 17 and 18. The Investor Representative’s signature is required on pages 17 and 18. 

 

	2.	Subscriber’s signature or acknowledgment is also required on the letter on page 18. 

  
 14 

 Foundation Health Enterprises LLC 

INVESTOR REPRESENTATIVE QUESTIONNAIRE 

Foundation Health Enterprises LLC 
 210 Park Avenue #1350, 

Oklahoma City, Ok 73102 
 Gentlemen: 

The information contained herein is being furnished to you in order for you to determine whether a sale of Class B membership consisting of a one percent
(1%) Class B membership interest in Foundation Health Enterprises, LLC, a Delaware limited liability company (the “Company”) representing one Class B membership unit in the Company and 10,000 shares of restricted shares of common
stock of Graymark Healthcare, Inc., (“Class B Units”), may be made to the following individual (either individually or as a partner or member of an investor which is a partnership or limited liability company): 

 
  

(Insert name of Subscriber) 
 in light of your
decision to sell the Units only to qualified investor for purposes of Regulation D promulgated under the Securities Act of 1933, as amended (the “Act”). The undersigned understands that (i) you will rely on the information set forth
herein for purposes of determining whether the undersigned a qualified investor and (ii) this Questionnaire is not an offer to sell the Units or any other securities to the undersigned Investor Representative. 

I note that you have not provided to the above-named Subscriber any written material in connection with the offering of the Units OTHER THAN THE OPERATING
AGREEMENT AND THE SUBSCRIPTION MATERIALS TO WHICH THIS INVESTOR REPRESENTATIVE QUESTIONNAIRE IS ATTACHED, WHICH I UNDERSTAND IS NOT A COMPLETE DESCRIPTION OF ALL OF THE RISKS ATTENDANT WITH AN INVESTMENT IN THE COMPANY OR THE UNITS. 

It should be noted by you that nothing herein shall be construed as a representation by me that I have attempted to verify any of the foregoing information;
rather, to the contrary, the scope of my engagement by, and my discussions with, the above subscriber have been limited to a determination of the suitability of an investment in the Units by the above-named subscriber in light of such
subscriber’s current investment circumstances as such circumstances have been presented to me. For this purpose I have assumed, but do not in any way represent or warrant, either to you or to the above-named subscriber, that the information
stated above is accurate and complete in all material respects. Each and every statement made by me in the following paragraphs is qualified by reference to the foregoing. 

  
 15 

 With the above in mind, I herewith furnish you with the following information: 

 

	A.	(i) the Company has made available to me all documents relating to an investment in the Company that I have requested and has provided answers to all of my questions concerning the private placement; (ii) I have
discussed the Company with the above-named Subscriber with a view to determining whether an investment in the Units by such Subscriber is appropriate in light of such Subscriber’s financial circumstances, as such circumstances have been
disclosed to me by such Subscriber; and (iii) I have advised the party whom I represent as to the merits and risks of an investment in the Units. In evaluating the suitability of an investment in the Units for the Subscriber, I have not relied
upon any representation or other information, whether oral or written, or as contained in any documents, other than as set forth in the Subscription Agreement and answers to questions furnished to me in writing by the Company, if any. None of the
information provided to me orally (if any) contradicts any written statements contained in the Subscription Materials or exhibits thereto and I have not relied on any such oral statements in forming my opinion that this investment is suitable for
the Subscriber. 

  

	B.	I have such knowledge and experience in financial and business matters to be capable of evaluating, alone, or together with other investor representatives of the Subscriber, the merits and risks of an investment in the
Company. I offer as evidence thereof the following additional information (e.g., investment experience, business experience, profession, education): 

  

 
  

 
  

 
  

	C.	I am not “affiliated” with and am not “compensated” by the Company or any affiliate or selling agent of the Company directly or indirectly (see Note on the following page). 

There is no material relationship between me or my affiliates and the Company or the Management or other affiliates which now exists or is
mutually understood to be contemplated or which has existed at any time during the previous two years. 
  

 
  

 
 [State “No Exceptions” or
set forth exceptions and give details. Please note that any exceptions must not cause you to be “affiliated” with or “compensated” by the Company or an affiliate of the Company as defined on the following page]. 

[If any exceptions exist and are described above, please confirm that such exceptions were disclosed to the above-named Subscriber in writing
prior to the date hereof by attaching hereto a copy of such disclosure statement.] 

  
 16 

 NOTE: 

The relationships which will render a person “affiliated” include: (i) a present or intended relationship of employment, either
as an employee, employer, independent contractor or principal; (ii) any relationship within the definition of the term “affiliate” set forth below, or as an officer, director or general partner of an affiliate; and (iii) the
beneficial ownership by the Investor Representative of securities of the Company or its affiliates or selling agent, except that the ownership of one percent (1%) or less of such securities shall not render an Investor Representative
affiliated. 
 “Affiliate” of the Company shall mean a person controlling, controlled by or under common control with the Company.
A person controls another person within the meaning of this definition through the possession, direct or indirect, of the power to direct or cause the direction of the management, policies or actions of such other person. 

I agree to notify you promptly of any changes to the information described in this Questionnaire which may occur prior to the completion of
the transaction. 
  

											
		 		 		 		 		  	Very truly yours,
						
	Dated:             , 2013	 		 		 		 		  	  

		 		 		 		 		  	(Signature of Investor Representative)
						
		 		 		 		 		  	  

		 		 		 		 		  	Print Investor Representative Name
						
		 		 		 		 		  	Investor Representative’s Office Address:
		 		 		 		 		  	  

		 		 		 		 		  	  

	  
	 		 		 		  	  

	(Subscriber)	 		 		 		 		  	
						
	Subscriber’s Address:	 		 		 		 		  	
				
	  
	 		 		  	
	  

 
	 		 		  	

													
	Telephone 	 	 (    )
	 		 		 		 		  	

  
 17 

 Dear Sir/Madam: 

You have asked me to act as your Investor Representative in connection with the offering to you or to an investor, partnership or limited
liability company of which you are a partner or member by Foundation Health Enterprises LLC, (the “Company”), of Units (as described in the Company’s Operating Agreement). Prior to such appointment, I am required to disclose to you
any material relationship between me and (i) the Company or the management or Unit holders of the Company or (ii) any investor, partnership or limited liability company of which you are a partner or member or the management or equity
owners of such investor, partnership or limited liability company, which now exists or is contemplated or which has existed at any time during the last two years. [Describe material relationships below:] 

 
  
  

 
  

 
  

 
  

 
  

 
 I have no other relationship to
the Company or its Management, or the Company’s Unit holders or other affiliates that is material to this offering. 
  

									
		 		 	Very truly yours,
				
		 		 		 	  

		 		 		 	(Investor Representative)
				
	Received and acknowledged:	 		 		 	
					
	By:	 	  
	 		 		 	
		 	 Signature of Investor
	 		 		 	
				
	Date:                         , 2013	 		 		 	

  
 18 

 PART C 

SUBSCRIPTION AGREEMENT AND OPERATING AGREEMENT SUBSCRIPTION PAGE 

(pages 20-27) 
  

	 	1.	Fill in all information requested on pages 26 and 27. 

  

	 	2.	The signature of the subscriber is required on page 27. 

  

  
 19 

 Foundation Health Enterprises LLC 

SUBSCRIPTION AGREEMENT AND POWER OF ATTORNEY 

This Subscription Agreement and Power of Attorney (this “Subscription Agreement”) is made by and between Foundation Health Enterprises LLC, a
Delaware limited liability company (the “Company”), and the undersigned who is subscribing hereby for Class B membership interests consisting of a one percent (1%) Class B membership interest in Foundation Health Enterprises, LLC, a
Delaware limited liability company (the “Company”) representing one Class B membership unit in the Company and 10,000 shares of restricted shares of common stock of Graymark Healthcare, Inc., (“Class B Units”) of the Company
being sold as Class B Units (“Units”) through a private placement by the Company (the “Private Placement”). The terms of the units are described in the Company’s Operating Agreement, dated
            , 2013 (the “Operating Agreement”), with which this Subscription Agreement has been delivered. 

By executing this Agreement I hereby acknowledge that I have received a copy of the Operating Agreement. I further acknowledge that I (or my Investor
Representative) have read the Operating Agreement and that I fully understand the terms and conditions of the Operating Agreement and the Class B Units represented by the Units, including the terms and conditions governing the amount and timing of
distributions (if any) on such Class B Units 
 In consideration of the Company’s agreement to issue Units to the undersigned, upon the terms and
conditions set forth herein, the undersigned agrees and represents as follows: 
  

	 	A.	SUBSCRIPTION 

 1. The undersigned hereby subscribes for the number of Units (the
“Units”), or fractional part thereof, set forth on the signature page below, at a price of One Hundred Five Thousand Dollars ($105,000) per Unit, in cash payable in U.S. currency by money order, bank draft or check made payable to
“Foundation Health Enterprises LLC” at the time of the delivery of this executed Subscription Agreement to the Company, or by conversion of debt owed by the Company to the undersigned, The undersigned agrees to execute and deliver to the
Company any other documents or loan documents reasonably requested by the Company to substantiate satisfaction by the undersigned of the terms and conditions established for investors as conditions precedent to the issuance of Units of the Company
and any other documents subsequently required by any lender, state securities commission or other authority or by Management. If the foregoing subscription is accepted by the Company, the undersigned acknowledges that the undersigned will be issued
the Units. 
 2. The undersigned understands that the undersigned may become a Unit holder at any time following the Company’s receipt
and acceptance of this subscription at the discretion of Management, after execution of this Agreement and the remittance of funds to the Company (although such remittance of funds is not required to render this Agreement enforceable once signed and
delivered to the Company) at which time the undersigned’s subscription funds and other documents will be released for use by the Company. Subscriptions will be accepted or rejected on a rolling basis and there is no requirement that the Company
sell a minimum number of Class B Units before accepting this subscription. 
 3. The undersigned understands and acknowledges that: 

  
 20 

 a. This subscription may be accepted or rejected in whole or in part by Management in
Management’s sole and absolute discretion and that the undersigned will not become a member of the Company or be issued any Class B Units therein until the Subscription Agreement is countersigned by Management. Management shall have the right
to reduce each investor’s (including that of the undersigned) subscription to reduce the total subscription if such is deemed to be in the best interest of the Company and its Interest holders. 

b. If this subscription is accepted, the Units purchased pursuant hereto will be owned only in the name of the undersigned as indicated on the
signature page below. If this subscription is rejected, any funds submitted in connection with the Subscription Agreement will be refunded to the undersigned by check or bank draft, without interest. 

c. Except as provided under applicable state securities laws, this subscription is and shall be irrevocable, except that the undersigned shall
have no obligations hereunder in the event that this subscription is for any reason rejected or the Private Placement is for any reason canceled. 

d. The following securities law matters are applicable to the offering: 

THE UNITS OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES
LAWS OF ANY STATE, AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH LAWS. THE UNITS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, OR BY THE SECURITIES
REGULATORY AUTHORITY OF ANY STATE, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THESE SUBSCRIPTION MATERIALS. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL. THE UNITS
MAY NOT BE TRANSFERRED, WHOLLY OR IN PART, EXCEPT IN COMPLIANCE WITH APPLICABLE SECURITIES LAWS. 
 e. The Units are being purchased for
the undersigned’s own account for investment and not for distribution or resale to others. The undersigned agrees that the undersigned will not sell or otherwise transfer the undersigned’s Units unless they are registered under the
Securities Act of 1933, as amended (the “Securities Act”), or unless an exemption from such registration is available. The undersigned represents that the undersigned has adequate means of providing for the undersigned’s current needs
and possible personal contingencies and that the undersigned has no need for liquidity in this investment. It is understood that all documents, records and books pertaining to this investment have been made available for inspection by the
undersigned and as requested by any of the undersigned’s attorney, accountant and Investor Representative. 
 f. No federal or state
agency has made any finding or determination as to the adequacy of the information set forth herein or as to the fairness of the Private Placement or any recommendation or endorsement of the Units. 

g. Any federal or state tax results of an investment in the Units are not susceptible to absolute prediction and audit adjustments to Company
returns or returns of individual Unit holders, new developments in rulings of the Internal Revenue Service, court decisions or legislative or administrative changes may have an adverse effect on one or more of the tax consequences sought by the
Company. 

  
 21 

 h. Because the Units have not been registered under the Securities Act or any applicable state
securities laws, the economic risk of the investment must be borne indefinitely by the undersigned and the Units cannot be sold unless subsequently registered under the Securities Act and such laws. Any such registration is unlikely at any time in
the future. Neither the Company nor Management is obligated to file a notification under Regulation A of the Securities Act or a registration statement under the Securities Act; Rule 144 adopted under the Securities Act, governing the possible
disposition of the Units, is not currently available and is not expected to be available in the foreseeable future and neither the Company nor Management has covenanted to take any action necessary to make Rule 144 available for a resale of the
Units; additionally, it is not anticipated that there will be any market for resale of the Units in the foreseeable future. 
 i. The
undersigned acknowledges that the Units are subject to certain transfer restrictions set forth in the Operating Agreement. Further, if the undersigned desires to transfer any of the Units purchased hereby, in addition to complying with such transfer
restrictions the undersigned agrees to comply with applicable federal and state securities laws and regulations and applicable federal and state banking laws and regulations (collectively, the “Securities Laws”). 

j. The undersigned hereby acknowledges and agrees that this Subscription Agreement may not be canceled, revoked or withdrawn by the
undersigned, and that this Subscription Agreement and the documents submitted herewith shall survive death or disability of the undersigned. 

k. The undersigned understands and acknowledges that the Company is relying on representations, warranties and agreements made by the
undersigned to the Company herein and in the Investor Questionnaire delivered herewith by the undersigned to the Company (the “Investor Questionnaire”) and, therefore, hereby agrees to indemnify the Company, Management and their partners,
directors, officers, affiliates, employees, agents and attorneys, and hold each of them harmless against any and all loss, damage, liability or expense, including reasonable attorneys’ fees, which they or any of them may suffer, sustain or
incur by reason of or in connection with any misrepresentation or breach of warranty or agreement made by the undersigned under this Subscription Agreement, the Investor Questionnaire or in connection with the sale or distribution by the undersigned
of the Units purchased by the undersigned pursuant hereto: (i) in violation of the Securities Act or any other applicable law; or (ii) in violation of any of the Securities Laws. 

 

	 	B.	REPRESENTATIONS AND WARRANTIES 

 1. The undersigned hereby represents, warrants
and agrees that: 
 a. The undersigned is acquiring the Class B Units in the Company represented by the Units for the undersigned’s own
account and not with a view to distribution or resale; has not subdivided the Units subscribed for hereby, nor is the undersigned holding all or any portion of the Units for, any other person; and agrees not to sell, hypothecate or otherwise dispose
of all or any part of the undersigned’s Unit (except that transfers for estate planning purposes to a trust or other entity the beneficial ownership of which is held be members of the purchaser’s immediate family shall not be
prohibited) unless: (i) the Units represented thereby have been registered under the Securities Act and applicable state securities laws or, in the opinion of counsel acceptable to the Company, an exemption from the registration laws is
available; and (ii) such transfer will not, in the opinion of counsel acceptable to the Company, cause the Company to violate any of the Securities Laws. 

  
 22 

 b. The undersigned is an “Accredited Investor” because the undersigned meets the
suitability requirements discussed in the Subscription Materials attached hereto or is a “Non-Accredited Investor.” 
 c. The
undersigned’s overall commitment to investments that are not readily marketable is not disproportionate to the undersigned’s net worth and the undersigned’s investment in the Units will not cause such overall commitment to become
excessive. 
 d. The undersigned has adequate net worth and means of providing for the undersigned’s current needs and personal
contingencies necessary to sustain a complete loss of the undersigned’s investment in the Company and the undersigned has no need for liquidity in this investment in the Units. 

e. The undersigned has, or the undersigned and the undersigned’s Investor Representative have, such knowledge and experience in financial
and business matters in general and in particular with respect to this type of investment that the undersigned is, or they are, capable of evaluating the merits and risks of an investment in the Company. 

f. The undersigned has evaluated and understands the risks and terms of investing in the Company. 

g. The Company has made available to the undersigned and as requested to any of the undersigned’s attorney, accountant or Investor
Representative all documents that the undersigned or any of the foregoing has requested relating to an investment in the Company and has provided answers to all of the undersigned’s or their questions concerning the Private Placement and an
investment in the Company. In evaluating the suitability of an investment in the Company and acquiring the Units, the undersigned has not been furnished with or relied upon any representations or other information (whether oral or written) that
contradict or expand upon the information set forth herein and in the Operating Agreement. 
 h. The undersigned recognizes and understands
that there are substantial risks related to the purchase of Units. 
 i. The undersigned has discussed with the undersigned’s
professional, legal, tax and financial advisors the suitability of an investment in the Company for the undersigned’s particular tax and financial situation. 

j. The undersigned is a bona-fide resident of the State set forth in the undersigned’s address below and agrees that, in the event the
undersigned’s principal residence is changed prior to purchase of the Units, the undersigned will promptly notify Management, and if the change is to a State in which offers and/or sales of Units in the manner contemplated by the Management is
prohibited by applicable law, that any offer to sell the Units to him prior to notification of the changes shall be deemed retracted and the undersigned shall no longer be entitled to purchase Units pursuant to such offer. 

k. All information which the undersigned has provided to the Company concerning the undersigned and the undersigned’s financial position,
including, but not limited to, the Investor Questionnaire, is true, correct and complete as of the date set forth below, and shall be true, correct and complete as of the date of the acceptance hereof by the Company and the issuance of the Units to
the undersigned. 

  
 23 

 l. The undersigned is not an officer or director of and does not directly or indirectly hold any
interest in any company, partnership or other entity which is a licensed broker/dealer or which owns a bank or bank holding company other than as disclosed in the undersigned’s Investor Questionnaire. 

m. If the undersigned is a corporation, partnership, trust or other entity, it represents that: (i) it is duly organized, validly existing
and in good standing in its jurisdiction of incorporation or organization and has all the requisite power and authority to invest in the Units as provided herein; (ii) such investment does not result in any violation of, or conflict with, any
term or provision of the charter, organizational documents or bylaws of the undersigned or any other instrument or agreement; (iii) such investment has been duly authorized by all necessary action on behalf of the undersigned; and
(iv) this Subscription Agreement has been duly executed and delivered on behalf of the undersigned and constitutes a legal, valid and binding agreement of the undersigned. 

n. If the undersigned is a corporation or a partnership, the person signing this Subscription Agreement on its behalf hereby represents and
warrants that the information contained in any Investor Questionnaire completed by any Unit holders of such corporation or partners of such partnership are true and correct with respect to such Unit holders or partners (and if any such Unit holder
or partner is itself a corporation or a partnership, with respect to all persons having an interest in such corporation or partnership, whether directly or indirectly) and that the person signing this Subscription Agreement has made due inquiry to
determine the truthfulness and accuracy of the information contained in any such Investor Questionnaire. 
 o. If the undersigned is
purchasing the Units subscribed hereby in a representative or fiduciary capacity, the representations and warranties contained herein (and in any other written statement or document delivered to the Company in connection herewith) shall be deemed to
have been made on behalf of the person or persons for whom such Units are being purchased. 
 p. All information which the undersigned has
heretofore furnished and furnishes herewith to the Company, including, without limitation, the certification as to the undersigned’s status as an “accredited investor” or “non-accredited investor” within the meaning of
Regulation D promulgated under the Securities Act, and any other information with respect to the undersigned’s financial position and business experience set forth in the undersigned’s Investor Questionnaire is correct and complete as of
the date of this Subscription Agreement, and if there should be any material change in such information prior to the notification to the undersigned of the acceptance by the Company of this subscription for Units (the “Closing”), the
undersigned will immediately furnish such revised or corrected information to the Company. 
 q. Within five days after receipt of a request
from the Company, the undersigned hereby agrees to provide such information and to execute and deliver such documents as may be reasonably necessary to comply with any and all laws and ordinances to which the Company is subject. 

r. The undersigned has not distributed copies of these Subscription Materials to anyone other than the undersigned’s advisors or Investor
Representative, if any, and no one other than the undersigned and the undersigned’s advisors or Investor Representative, if any, has used these materials. 

s. The foregoing representations, warranties and agreements, together with all other representations and warranties made or given by the
undersigned to the Company in any other written statement or document delivered in connection with the transactions contemplated hereby, shall be true and correct in all respects on and as of the date of the Closing as if made on and as of such date
and shall survive such date. If more than one person is signing this Subscription Agreement, each representation, warranty and undertaking hereby shall be the joint and several representation, warranty and undertaking of each such person. 

  
 24 

 t. The undersigned acknowledges that the Company will impress appropriate legends on each
instrument representing the Units (if any), including the following: 
 The Units represented by this certificate have not been
registered under the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state law, and such Units may not be sold or otherwise transferred unless (a) they are registered under the Securities Act and any
applicable state law or (b) such sale or transfer is exempt from such registration and the Company has received an opinion of counsel acceptable to it to the effect that such sale or transfer is so exempt. 

u. The undersigned understands that the Company will not obtain a revenue ruling from the Internal Revenue Service or an opinion of counsel as
to the tax aspects of the transaction including the status of the Company for tax purposes. 
  

	 	C.	POWER OF ATTORNEY 

 The undersigned, desiring to become a Class B Member of the
Company, hereby agrees to all of the terms of the Operating Agreement and agrees to be bound by the terms and conditions thereof. The undersigned hereby constitutes and appoints the Manager of the Company or its successors as the undersigned’s
true and lawful attorney and in the undersigned’s name, place, and stead to make, execute, sign, acknowledge, swear to, deliver, record, and file the Operating Agreement and any documents or instruments which may be considered necessary or
desirable by the Management to carry out fully the provisions of the Operating Agreement and, without limitation by enumeration, an amendment or amendments to said Operating Agreement, or the Articles of Organization for the Company for the purpose
of adding the undersigned and others as members of the Company (in which amendments the undersigned hereby joins and executes and authorizes this Agreement to be attached to any such amendment) or otherwise amending said Operating Agreement or
Certificate or canceling the same, or any other action permitted and shall be irrevocable and survive the undersigned’s death, incapacity, insolvency, dissolution, or termination, as the case may be, or the undersigned’s delivery of an
assignment of the whole or any part of the undersigned’s Interests. This Power of Attorney shall be supplementary to any power of attorney granted in the Operating Agreement. 

 

	 	D.	MISCELLANEOUS 

 1. All pronouns and any variations thereof used herein shall be
deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the person or persons may require. 
 2. Notices
required or permitted to be given hereunder shall be in writing and shall be deemed to be sufficiently given when personally delivered or when sent by registered or certified mail, return receipt requested, addressed to the other party at the
address of such party set forth herein, or to such other address furnished by notice given in accordance with this Paragraph. 
 3. Failure
of the Company to exercise any right or remedy under this Subscription Agreement or any other agreement between the Company and the undersigned, or otherwise, or delay by the Company in exercising same, will not operate as a waiver thereof. No
waiver by the Company will be effective unless and until it is in writing and signed by the Company. 

  
 25 

 4. This Subscription Agreement shall be enforced, governed and construed in all respects in
accordance with the laws of the State of Delaware. This Subscription Agreement and the rights, powers and duties set forth herein shall be binding upon the undersigned, the undersigned’s heirs, estate, legal representatives, successors and
assigns and shall inure to the benefit of the Company, its successors and assigns. In the event that any provision of this Subscription Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be
deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or
enforceability of any other provision hereof. 
 5. The undersigned hereby certifies under the penalties of perjury that the social security
number or tax identification number provided below and the information provided with respect to Section 3406a(a)(1)(C) of the Internal Revenue Code of 1986, as amended, is true and correct. 

Pursuant to the Unit and Dividend Tax Compliance Act of 1983, payors of interest, dividends and certain other payments must withhold thirty
one percent (31%) of such amounts (this is referred to as “backup withholding”) if the payee fails to furnish the payor with: (i) the payee’s correct taxpayer identification number (the payee’s social security number);
and (ii) a statement certified under penalties of perjury concerning: (a) the accuracy of the payee’s taxpayer identification number; and (b) the fact that the payee is not subject to backup withholding because the Internal
Revenue Service has not notified the payee that he is subject to backup withholding due to a failure to report all interest and dividends. Funds deposited with the Company by subscribers may earn interest. Therefore, absent receiving the
undersigned’s taxpayer identification number and the foregoing certification by checking the appropriate box that he is not subject to backup withholding pursuant to Section 3406(a)(1)(C) of the Internal Revenue Code, backup withholding
will be applicable in general. 
 Make an “X” in the following blank if you are NOT subject to backup withholding under the
provisions of Section 3406(a)(1)(C) of the Internal Revenue Code of 1986, as amended.         

Taxpayer Identification Number or Social Security Number: 

6. This Subscription Agreement constitutes the entire agreement of the parties and there are no further agreements or understandings, written or oral, in
effect between the parties relating to the subject matter hereof. This Agreement supercedes all prior negotiations, agreements and undertakings (in each case, if any) between the parties with respect to the subject matter hereof. 

7. The undersigned has not been provided with any written information concerning the Company other than the Operating Agreement and the Subscription Materials
of which this Subscription Agreement is a part. No oral information provided to the undersigned conflicts with or in any way contravenes or diminishes any of the disclosures or risk factors set forth herein, and the undersigned has not relied on any
oral representations (if any) in making a decision to invest in the Units. 

  
 26 

 SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT AND POWER OF ATTORNEY 

IN WITNESS WHEREOF, the undersigned has executed, or has caused to be executed by its duly authorized officers, partners or other
representatives, this Subscription Agreement this             day of             , 2013, and declare that it is truthful and
correct. 
  

									
	Total Number of Class B Units at $105,000.00 per Unit:	  				  	  
	  	
				
	 Total Subscription Amount:
	  	 	$	  	  	  
	  	

  

					
	INDIVIDUAL SUBSCRIBER:	 		 	NON-INDIVIDUAL SUBSCRIBER:
			
	  
	 		 	  

	Signature of Subscriber	 		 	Printed Name of Subscriber
			
	  
	 		 	  

	Printed Name of Subscriber	 		 	Signature and Title of Officer, Partner or Other
		 		 	Representative
			
		 		 	  

		 		 	Printed Name of Officer or Authorized Agent
			
	Individual Subscriber’s Residence Address	 		 	Non-Individual Subscriber’s Office Address
	  
	 		 	  

	  
	 		 	  

	  
	 		 	  

 TO BE COMPLETED BY ALL SUBSCRIBERS 

 

									
	Subscriber’s Mailing Address	 		  		  		 	
	If other than provided above:	 	 	  		  	Tel:	 	  

		 	 	  		  		 	
		 	 	  		  	E-mail;	 	  

 ACCEPTANCE BY COMPANY: The undersigned, the Manager of Foundation Health Enterprises LLC, hereby accepts the
Subscription of the Subscriber listed above as of the date set forth below. 
  

									
	FOUNDATION HEALTH ENTERPRISES LLC	 		 	
					
	By:	 	  
	 		 		 	
					
	 Its:
	 	  
	 		 	Date:	 	  

  
 27 

 JOINDER OF MEMBER TO 

OPERATING AGREEMENT 
 FOR

 FOUNDATION HEALTH ENTERPRISES LLC 

The undersigned hereby joins in the execution of the Operating Agreement (the “Agreement”) for FOUNDATION HEALTH ENTERPRISES LLC, a
Delaware limited liability company (the “Company”) as a Class B Member with such rights provided by the Agreement. 
 The
undersigned hereby acknowledges that upon payment by the undersigned of a Capital Contribution to the Company in the amount of $            in cash and acceptance of this Joinder by the
Company (a) this Joinder shall be a counterpart execution of the Agreement and (b) the undersigned shall be a party to the Agreement as a Class B Member with Class B Units. The undersigned hereby agrees to be bound by all the terms of the
Agreement as though the undersigned was an original party thereto. 
 IN WITNESS WHEREOF, the undersigned has executed this Joinder as of
this             day of             , 2013. 

 

			
	  

	Signature	 	
	  

	Print Name	 	
	Address:	 	  

		 	  

		 	  

 ACCEPTANCE 

The foregoing Joinder is hereby accepted by the Company as of             , 2013.

  

			
	FOUNDATION HEALTH ENTERPRISES LLC
		
	By:	 	  

	Title:	 	  

  
 28

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