Document:

Pentair Ltd. Employee Stock Purchase and Bonus Plan

 Exhibit 10.2 
 PENTAIR LTD. 
 EMPLOYEE STOCK PURCHASE AND BONUS PLAN 

Effective September 28, 2012 
 SECTION 1 
 HISTORY AND BACKGROUND 

Pentair, Inc. (“Old Pentair”) adopted, effective March 1, 1977, the Pentair, Inc. Employee Stock Purchase and Bonus Plan
the (“Pre-Merger ESPP”) and, effective August 31, 1998, the Pentair, Inc. International Stock Purchase and Bonus Plan (the “Pre-Merger International ESPP”). The shareholders of Old Pentair approved amended and restated
versions of the Pre-Merger ESPP and the Pre-Merger International ESPP that became effective on May 1, 2004. Old Pentair adopted (1) the Pre-Merger ESPP to provide to U.S. employees of Old Pentair and the members of its controlled group of
companies an opportunity to purchase, as a long-term investment, shares of Old Pentair common stock, and (2) the Pre-Merger International ESPP to afford the employees of its international branches and subsidiaries a convenient and
cost-effective means for the regular and systematic purchase of Old Pentair common stock on terms substantially comparable to those available to Old Pentair U.S. employees. 
 In connection with the merger of Old Pentair with and into a wholly-owned subsidiary of Tyco Flow Control International Ltd. (to be renamed Pentair Ltd., and referred to herein as the
“Company”), which is expected to occur on or about September 28, 2012 (the “Merger”), the Company is adopting this Pentair Ltd. Employee Stock Purchase and Bonus Plan (the “Plan”) to provide to employees of the
Company and its designated divisions and subsidiaries the opportunity to purchase shares of the Company’s common stock after the Merger. The Plan shall become effective only upon the date the Merger is consummated (the “Commencement
Date”). The Plan is also considered a successor to the Pre-Merger ESPP and Pre-Merger International ESPP for all purposes, including satisfying the purchase obligations under those plans for the quarter ending September 30, 2012.

 The following sections of the Plan (other than Appendix A) shall apply to the U.S. employees of the Company and its
participating divisions and subsidiaries. The terms and conditions set forth in Appendix A shall apply exclusively to the non-U.S. employees of the Company’s participating international branches and subsidiaries. 

SECTION 2 

DEFINITIONS 
 Unless the context clearly requires otherwise, when capitalized the terms listed below shall have the following meanings when used in this Section or other parts of the Plan. 

(1) “Account” is an account maintained under the Plan by the Plan Agent to record the amount withheld from each
Participant’s Compensation or contributed directly by a Participant for the purpose of purchasing Stock, the amount of Company matching contributions made on behalf of a Participant, cash dividends paid with respect to such Stock, and the
number of shares of Stock held on behalf of each Participant under the Plan. 

 (2) “Affiliated Company” is (a) any corporation or business located in
and organized under the laws of one of the United States which is a member of a controlled group of corporations or businesses (within the meaning of Code section 414(b) or (c)) that includes the Company, but only during the periods such affiliation
exists, or (b) any other entity in which the Company may have a significant ownership interest, and which the Plan Administrator determines shall be an Affiliated Company for purposes of the Plan. 

(3) “Code” is the Internal Revenue Code of 1986, as amended. 

(4) “Company” is Pentair Ltd., a Swiss company. 

(5) “Compensation” is a Participant’s base wages or salary (i.e., exclusive of overtime or bonus payments), or the
equivalent thereof, paid to or on behalf of a Participant for services rendered to the Company or a Participating Employer. 

(6) “Eligible Employee” is an Employee, except those Employees: 

(i) who are included in a unit of Employees covered by a collective bargaining agreement between Employee representatives
and a Participating Employer, unless and to the extent such agreement provides that such Employees shall be covered by the Plan, or the Participating Employer and the Plan Administrator have otherwise agreed to extend coverage under the Plan to such
Employees; 
 (ii) who are covered under Appendix A; 

(iii) whose Employer is not a Participating Employer; or 

(iv) who are not treated as Employees by the Company or a Participating Employer for purposes of the Plan even though
they may be so treated or considered under applicable law, including Code section 414(n), the Federal Insurance Contribution Act or the Fair Labor Standards Act (e.g., individuals treated as employees of a third party or as self-employed).

 (7) “Employee” is an individual who is an employee of the Company or an Affiliated Company. 

(8) “Participant” is an Eligible Employee who has met the age and service requirements for Plan participation and
completed the authorization form necessary for participation. 
 (9) “Participating Employer” is an Affiliated
Company which is making, or has agreed to make, contributions under the Plan with respect to some or all of its Employees, but only during the period such agreement to contribute remains in effect. The Company must approve each Participating
Employer, except that any entity that is considered a Participating Employer under the Pre-Merger ESPP automatically shall be considered a Participating Employer hereunder on the Commencement Date without further action by the Company or such
employer. 

  
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 (10) “Plan” is the Pentair Ltd. Employee Stock Purchase and Bonus Plan as
described in this plan document effective September 28, 2012, and as it may be amended from time to time thereafter. 

(11) “Plan Administrator” is the Company, and may include an employee or committee of employees of the Company or any
subsidiary thereof that has been appointed by the Company to serve as the plan administrator of the Plan. 
 (12) “Plan
Agent” is the entity duly appointed by the Company to receive funds contributed by Participants and Participating Employers, to purchase shares of Stock with such funds, and to maintain Participant Accounts. 

(13) “Prospectus” is the prospectus, as in effect from and after September 28, 2012, which describes the Plan and
which is delivered to eligible Participants with respect to the purchase of Stock under the Plan. 
 (14)
“Stock” is the registered shares of the Company, nominal value CHF 0.50 per share, subject to any capital changes. 
 SECTION 3 
 ELIGIBILITY 

3.1 General. All Eligible Employees of a Participating Employer may elect to participate in the Plan after the Commencement
Date upon the attainment of age eighteen (18) and the completion of twelve (12) consecutive months of employment with the Company or an Affiliated Company, measured from such individual’s original date of hire. Notwithstanding the
foregoing, all Participants in the Pre-Merger ESPP as of the date immediately preceding the Commencement Date automatically shall be considered Participants hereunder on the Commencement Date without further action by such individuals. 

3.2 Determining Credit for Completed Service. 
 (a) Eligible Employee Who Leaves Employment. In the event an Employee who has completed the twelve (12) consecutive months of service necessary to elect to participate in the Plan leaves
employment with the Company and all Affiliated Companies and is subsequently rehired, credit for such completed service shall not be lost, regardless of the length of time between the date such employment ends and the individual’s rehire date.

 (b) Leaving Employment Before Eligible. An Employee who leaves employment with the Company and all Affiliated
Companies prior to the completion of twelve (12) consecutive months of service and is subsequently rehired shall not receive credit for any service completed prior to the time such first term of employment ended. 

(c) Collectively Bargained Employees. In those cases where a group of Employees who are covered by a collective bargaining
agreement becomes eligible to participate in the Plan pursuant to the terms of such agreement then, unless the agreement provides otherwise, such Employees shall be given credit for service completed prior to the effective date of such agreement for
purposes of determining eligibility to elect to participate in the Plan. 

  
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 (d) Newly Acquired Groups. In those cases where a company, partnership, joint venture
or other entity becomes an Affiliated Company, the Plan Administrator may, but shall not be required to, give credit to the Employees of such organization for service completed with their employer prior to the date such employer becomes an
Affiliated Company. 
 SECTION 4 
 PARTICIPATION 
 4.1 General. Plan participation is voluntary
and Eligible Employees do not automatically become Participants upon meeting the Plan’s eligibility requirements, except as set forth in Section 3.1. An Eligible Employee who has met the Plan’s eligibility requirements, as described
in Section 3, may commence Plan participation after the Commencement Date by delivering to the Human Resources Department of the Company or a Participating Employer an authorization for deductions from such individual’s Compensation, if
the individual intends to make contributions through payroll deductions. Notwithstanding the foregoing, the deduction authorization in effect for each Participant in the Pre-Merger ESPP as of the Commencement Date automatically shall be given effect
hereunder on and after the Commencement Date. 
 4.2 Withdrawal from Participation. A Participant may elect to
cease participation under the Plan at any time, even though he or she remains an Eligible Employee of the Company or a Participating Employer, by giving written notice to his or her employer. Such an individual may not elect to again participate in
the Plan until the calendar year following the calendar year in which he or she withdraws from participation. 
 SECTION 5

 CONTRIBUTIONS 
 5.1 Participant Contributions. Participants may make contributions under the Plan for purposes of purchasing Stock by using either or both of the methods described below. All such
contributions must be made in cash or a cash equivalent. 
 (a) Payroll Deductions. A Participant may authorize his or
her employer to make a deduction from each paycheck for purposes of purchasing Stock. The minimum deduction allowed is $10.00 per month; the maximum deduction allowed is the lesser of $750 per month and 15% of such Participant’s Compensation. A
Participant may change the amount of his or her payroll deduction at any time, but not more than once in any calendar year. 

(b) Additional Contributions. A Participant may also purchase Stock by making an additional cash contribution. Any such
contribution shall not be made by payroll deduction but shall be paid by the Participant directly to the Plan Agent. These contributions, if any, must be made at least quarterly, and the total quarterly contribution cannot exceed $3,000. 

5.2 Employer Bonus Contribution. Each month the Company and Participating Employers shall pay to the Plan Agent on behalf
of each Participant employed by such employer an amount equal to twenty-five percent (25%) of the contributions made by Participants through payroll deductions from Compensation. No such bonus contribution shall be made by the Company or any
Participating Employer with respect to any additional cash contributions made directly by Participants. 

  
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 5.3 Dividends. Cash dividends paid on Stock held in a Participant’s
Account shall be used by the Plan Agent to purchase additional shares of Stock on behalf of such Participant. Stock dividends declared by the Company shall be allocated to Accounts. 

5.4 Mandatory Suspension. To the extent required under applicable United States Treasury Regulations, a Participant who
receives a hardship withdrawal pursuant to the provisions of the Pentair, Inc. Retirement Savings and Stock Incentive Plan or such other retirement plan in which such Participant participates shall be required to cease contributions of any kind to
the Plan for a minimum of six (6) months from the date such hardship distribution is received. 
 SECTION 6

 PURCHASE OF STOCK 
 6.1 Participant Accounts. The Plan Agent shall establish for each Participant an Account to hold the Stock purchased on behalf of such Participant. All Stock and other amounts allocated to
such Account shall at all times be fully vested and nonforfeitable. 
 6.2 Purchasing Stock. The Plan Agent shall
use all Participant and employer contributions, regardless of type and including cash dividends, to purchase Stock on the open market. The Plan Agent shall make all such purchases over a number of business days each month as are agreed to by the
Plan Agent and the Company. All Stock so purchased shall be allocated to the Accounts of Participants on behalf of whom purchases were made based on the average purchase price obtained over said monthly purchase period. No interest shall be paid on
any cash amounts held by the Plan Agent regardless of whether such cash is being held in anticipation of the date on which Stock purchases shall be made or held pending a refund to a terminating Participant. 

SECTION 7 

ENDING PARTICIPATION 
 7.1 General. A Participant may elect to discontinue Plan participation even though he or she remains an Eligible Employee of the Company or a Participating Employer. In addition, a
Participant may cease Plan participation by reason of becoming an Employee of an Affiliated Company which is not a Participating Employer, by joining a group of Employees who are not Eligible Employees, or by qualifying for benefits under a
long-term disability plan maintained by the Company or a Participating Employer. At such time as a Participant shall cease employment with the Company and all Affiliated Companies, Plan participation shall cease and the individual may elect the
manner in which his or her Account shall be distributed. 
 7.2 Discontinuing Participation. An individual may
elect at any time to cease making contributions under the Plan, even though he or she remains an Eligible Employee of the Company or a Participating Employer. In addition, an individual who begins receiving long-term disability benefits shall cease
making contributions under the Plan. Such individuals may, but are not required to, request a full or partial cash or Stock disposition from their Accounts. 

  
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 7.3 Ceasing to be an Eligible Employee. Participants who cease to be Eligible
Employees but remain Employees of the Company or an Affiliated Company may, but are not required to, request a full or partial cash or stock disposition from their Accounts. 
 7.4 Termination of Employment. Participants who cease to be Employees of the Company or any Affiliated Company shall receive a distribution from their Accounts as described in
Section 8. 
 7.5 Death of Participant. In the event of the death of a Participant, such individual’s
Account shall be distributed as described in Section 8. 
 SECTION 8 

DISPOSITION OF ACCOUNTS 
 8.1 Termination of Participation. At such time as a Participant shall cease to participate in the Plan due to a termination of employment with the Company and all Affiliated Companies, the
Human Resources Department of such individual’s employer shall provide to the individual a notice of Account distribution options and a form whereby the individual can provide to the Plan Agent instructions as to the disposition of his or her
Account. A Participant may elect to receive whole shares of Stock, plus cash in lieu of fractional shares, or cash only. 
 (a)
Stock Election. If a terminating Participant elects to receive a Stock distribution, the Plan Agent shall deliver to such Participant the number of whole shares of Stock allocated to such Participant’s Account. Any fractional shares of
Stock being distributed shall be sold at the Stock’s then current market price and the proceeds of such sale, reduced by any costs associated with such sale, including brokerage fees due to the Plan Agent or any other party, shall be sent to
the Participant. Generally, all distributions shall be completed after all Stock purchases relevant to such Account have been made. 
 (b) Cash Election. If a terminating Participant elects to receive cash, the Plan Agent shall sell all whole and fractional shares of Stock allocated to such Participant’s Account. All such
Stock shall be sold at the then current market price and the proceeds of such sale, reduced by any costs associated with such sale, including brokerage fees due to the Plan Agent or any other party, shall be sent to the Participant. Generally, all
sales shall be completed after all Stock purchases relevant to such Account have been made. 
 (c) Default Provision. If
a terminating Participant does not make a distribution election within thirty (30) days of the date the Human Resources Department provides the notice described in Section 8.1, the Plan Agent shall proceed as if such Participant had
elected a Stock distribution. 
 8.2 Death of Participant. In the event of the death of a Participant, the legal
representative or administrator of such Participant’s estate shall be entitled to elect between a Stock or cash distribution, made at the times and in the manner described in Section 8.1, and shall be subject to the same default
distribution rules as a Participant. All distributions, regardless of form, shall be paid as directed by the Participant’s legal representative or administrator, or paid to the Participant’s estate if no such direction is provided. To the
extent the Plan Administrator determines that Participant Accounts may be held in joint tenancy with right of survivorship or adds to the Plan a provision permitting transfer on death designation, then the Stock held in the Account of a deceased
Participant shall be distributed according to any such designation duly made by the Participant. 

  
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 8.3 Withdrawal from Accounts. 

(a) In-service Distribution. Withdrawals from Accounts are available to Participants who (i) remain Eligible Employees but
cease making contributions under the Plan; (ii) are no longer Eligible Employees but remain Employees of the Company or an Affiliated Company; or (iii) are currently Participants. Such a withdrawal may be made in either cash or shares of
Stock. 
 (b) Stock Election. If a Participant described in Section 8.3(a) wishes to receive shares of Stock, then
he or she shall specify the number of whole shares of Stock to be distributed, if the request is for a distribution of less than the entire Account balance. If the request is for withdrawal of the entire Account balance, any fractional shares of
Stock held in such Account shall be sold at the Stock’s then current market price and the proceeds of such sale, reduced by any costs associated with such sale, including brokerage fees due to the Plan Agent or any other party, shall be sent to
the Participant. Generally, all such distributions shall be completed after all Stock purchases relevant to such Account have been made. 
 (c) Cash Election. If a Participant described in Section 8.3(a) wishes to receive cash, the Plan Agent shall sell all whole and fractional shares of Stock allocated to such Participant’s
Account or, if less than the entire Account, such number of shares of Stock as the Participant shall specify. All such Stock shall be sold at the then current market price and the proceeds of such sale, reduced by any costs associated with such
sale, including brokerage fees due to the Plan Agent or any other party, shall be sent to the Participant. Generally, all sales shall be completed after all Stock purchases relevant to such Account have been made. 

(d) Premature Withdrawal of Shares. If a Participant who has neither left employment with the Company and all Affiliated Companies
nor otherwise ceased to participate under the Plan requests that the Plan Agent sell some or all of the Stock acquired for his or her Account with amounts contributed by payroll deductions from Compensation within twelve (12) months after such
Stock is purchased, the Participant’s employer may cease to make bonus contributions for the benefit of such Participant for twelve (12) months following the date of such premature sale. 

SECTION 9 

ADMINISTRATION 
 9.1 Term of Plan. Contingent upon the consummation of the Merger, this Plan shall be effective September 28, 2012, or such other date as the Merger is consummated, and shall remain in
effect for a period of ten (10) years after such effective date, unless the Plan is earlier terminated as provided in Section 10.6. 
 9.2 Prospectus. Upon completing the eligibility requirements described in Section 3, an Eligible Employee shall receive from the Human Resources Department of the Company or his or her
Participating Employer a copy of the Prospectus which describes the Plan. 

  
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 9.3 Reporting. The Plan Agent shall provide to each Participant quarterly, or
at such other intervals as may be necessary or appropriate, the following information: 
 (a) the total amount contributed to
each Participant’s Account for such quarter, whether by payroll deduction, lump sum contributions, or the Participant’s employer; 
 (b) the number of shares of Stock purchased on behalf of the Participant with all of such contributions; and 
 (c) the total number of shares of Stock then allocated to the Participant’s Account. 
 9.4 Voting of Stock in Accounts. The Company shall provide to each Participant all notices and correspondence it provides to any shareholder of record who is not a Participant, including
proxy statements. The Plan Agent shall receive proxy instructions from each Participant and shall vote the Stock allocated to each Participant’s Account in accordance with the instructions, if any, provided by such Participant. 

9.5 Non-Alienation. No Participant may use his or her Account, or the Stock allocated to such Account, as collateral, or
otherwise assign, pledge or encumber such Stock. 
 9.6 Fees and Commissions. The Company shall pay commissions,
service charges or other costs incurred with respect to the purchase of Stock for purposes of the Plan. When any such Stock is sold, the Participant is responsible for payment of any commissions, service charges or other costs incurred on account of
such sale. 
 SECTION 10 
 MISCELLANEOUS 
 10.1 Voluntary Participation. Participation
in the Plan is entirely voluntary, and by maintaining the Plan the Company is not making a recommendation as to whether any Eligible Employee should invest in Stock. Investment in any stock involves risk, and each Eligible Employee must decide
whether to accept the risk of investing in Stock. 
 10.2 Employee Rights. The right of the Company or an
Affiliated Company to discipline or discharge Employees, or to exercise rights related to the tenure of any individual’s employment, shall not be affected in any manner by reason of the existence of the Plan or any action taken pursuant to the
Plan. 
 10.3 Construction. The Plan Administrator shall have full power and authority to interpret and construe
the Plan, to adopt rules and regulations not inconsistent with the Plan for purposes of administering the Plan with respect to matters not specifically covered in the Plan document and to amend and revoke any rules and regulations so adopted. Except
as otherwise provided in the Plan, any interpretation of the Plan and any decision on any matter within the discretion of the Plan Administrator which is made in good faith by the Plan Administrator shall be final and binding. 

  
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 10.4 Interpretation. Section and subsection headings are for convenience of
reference and not part of this Plan, and shall not influence its interpretation. Wherever any words are used in the Plan in the singular, masculine, feminine or neuter form, they shall be construed as though they were also used in the plural,
feminine, masculine or non-neuter form, respectively, in all cases where such interpretation is reasonable. 
 10.5 Plan
Amendment. The Company may, by written resolution of its Board of Directors or through action of the Compensation Committee of such Board, at any time and from time to time, amend the Plan in whole or in part. 

10.6 Plan Termination. The Company may, by written resolution of its Board of Directors or through action of the
Compensation Committee of such Board, terminate the Plan at any time. In the event the Plan terminates, the Participant’s Accounts shall be handled in the same manner as if the Participant had terminated employment with the Company and all
Affiliated Companies. 
 10.7 Choice of Law. To the extent not preempted by applicable federal law, the
construction and interpretation of the Plan shall be made in accordance with the laws of the State of Minnesota, but without regard to any choice or conflict of laws provisions thereof. 

10.8 Acceptance of Terms. By electing to participate in the Plan, each Participant shall be deemed to have accepted all of
the provisions of the Plan, and the terms and conditions set forth by the Plan Agent, and to have agreed to be fully bound thereby. 
 10.9 Computational Errors. In the event mathematical, accounting, or similar errors are made in maintaining Participant Accounts, the Plan Administrator or the Plan Agent, as the case may
be, may make such equitable adjustments as it deems appropriate to correct such errors. 
 10.10 Communications.
The Company, a Participating Employer or the Plan Agent may, unless otherwise prescribed by any applicable state or federal law or regulation, provide the Prospectus and any notices, forms or reports by using either paper or electronic means.

  
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 APPENDIX A 

PENTAIR LTD. 

INTERNATIONAL STOCK PURCHASE AND BONUS PLAN 
 Effective September 28, 2012 
 SECTION 1 

BACKGROUND AND PURPOSE 
 1.1 Background. See “Section 1 – History and Background” of the Plan. 
 1.2 Purpose. The purpose of the terms and conditions of the Plan set forth in this Appendix A (the “International Plan”) is to assist the Company and its international
subsidiaries in attracting and retaining personnel of outstanding abilities, to motivate employees to dedicate their maximum productive effort on behalf of the Company and its international branches and subsidiaries and to encourage long-tem
ownership of the Company’s common stock by such employees. 
 SECTION 2 

DEFINITIONS 
 Unless the context clearly requires otherwise, (1) when capitalized, the terms listed below shall have the meanings given below when used in this Section or other parts of the International Plan and
(2) when capitalized, terms used in the International Plan that are not defined in the International Plan shall have the meanings given in the other parts of the Plan. 
 (a) “Account” is the account maintained by the Trustee for each Participant to hold shares of Stock purchased in accordance with the International Plan, together with any other funds
belonging to the Participant. 
 (b) “Alternate Currency” is any currency other than United States dollars.

 (c) “Board” is the Board of Directors of the Company. 

(d) “Broker” is the entity selected by the Trustee from time to time pursuant to Section 7.2 to act as the broker
for the International Plan. 
 (e) “Committee” is the International Stock Plan Committee, which is a committee
of employees of the Company or its affiliates as appointed from time to time by the Board to administer the International Plan. 

(f) “Company” is Pentair Ltd., a Swiss company. 

(g) “Distribution Date” is the last business day, in the jurisdiction of the Trustee, of each calendar quarter.

 (h) “Eligible Employee” is each Regular Employee of a Participating
International Affiliate who is at least eighteen (18) years of age and has completed at least one (1) year of continuous employment with a Participating International Affiliate and who is not covered by the parts of the Plan other than
this Appendix A. 
 (i) “International Plan” is the Pentair Ltd. International Stock Purchase and Bonus
Plan, as described in this Appendix A effective September 28, 2012, and as it may be amended from time to time thereafter. 
 (j) “Participant” is an Eligible Employee who is enrolled in the International Plan. 
 (k) “Participating International Affiliate” is any branch office of the Company, and any corporation or other form of business or association owned or controlled, directly or indirectly,
by the Company, whose Regular Employees are, by action of the Committee, permitted to participate in the International Plan and which is identified on Schedule 1 hereto. Notwithstanding the foregoing, any branch office, corporation or other form of
business or association that is considered a Participating International Affiliate under the Pre-Merger International ESPP immediately prior to the Commencement Date automatically shall be considered a Participating International Affiliate hereunder
on the Commencement Date without further action by the Committee. 
 (l) “Plan” is the Pentair Ltd. Employee
Stock Purchase and Bonus Plan as described in this plan document effective September 28, 2012, and as it may be amended from time to time thereafter. 
 (m) “Regular Employee” is each employee of a Participating International Affiliate who works or is scheduled to work a minimum of fifteen (15) hours per week. 

(n) “Stock” is the registered shares of the Company, nominal value CHF 0.50 per share, subject to any capital
changes. 
 (o) “Trust” is the trust established by the Declaration of Trust, dated September 3, 1998 or
any successor thereto, for the purpose of holding Stock purchased by the Trustee for the benefit of Participants in accordance with the Plan. 
 (p) “Trustee” is the corporation which from time to time is the duly appointed and acting trustee of the Trust. 
 SECTION 3 
 ADMINISTRATION 

3.1 Administrator. The International Plan shall be administered by the Committee, which shall have full power and authority
to interpret and construe any provision of the International Plan, to adopt rules and regulations not inconsistent with the International Plan for carrying out the purposes of the International Plan with respect to matters not specifically covered
herein and to amend and revoke any rules or regulations so adopted. Except as otherwise provided herein or to the extent required by law, any interpretation of the International Plan and any decision on any matter within the discretion of the
Committee which is made by the Committee in good faith is binding on all persons. 

  
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 3.2 Rulemaking Authority. The Committee shall, to the extent necessary or
desirable, establish any special rules for Eligible Employees, former employees, or Participants located in a particular country. Such rules shall be set forth in Appendices to this International Plan, which shall be deemed incorporated into the
International Plan. 
 SECTION 4 
 PARTICIPATION 
 Each Eligible Employee may participate in the International
Plan at any time after the Commencement Date by delivering to the Participating International Affiliate by which he or she is employed: 
 (a) such forms as are required by the Trustee or the Committee for purposes of establishing an Account for the Participant and for the purchase by the Trustee of Stock for the account of the Participant;
and 
 (b) a completed and duly signed form authorizing the relevant Participating International Affiliate to make compensation
deductions for the Participant for purposes of enabling the Participant to make contributions to the International Plan as contemplated herein. 
 Participation in the International Plan by Eligible Employees is entirely voluntary. After the Commencement Date, participation in the International Plan will begin as soon as practicable after the
required forms are received and processed by the Participating International Affiliate and the Trustee and continue until the Participant ceases to be an Eligible Employee, the Trustee terminates the participation of the Participant pursuant to
Section 9 or written termination by the Participant of his or her participation in the International Plan is received and processed by the relevant Participating International Affiliate and the Trustee. 

Notwithstanding the foregoing, all Participants in the Pre-Merger International ESPP as of the date immediately preceding the
Commencement Date automatically shall be considered Participants hereunder on the Commencement Date without further action by such individuals and such individuals’ compensation deduction agreements shall be given effect hereunder. 

SECTION 5 

PARTICIPANT CONTRIBUTIONS 
 Participants may make contributions for the purchase of Stock under the International Plan in accordance with the following: 
 (a) Payroll Deductions. Participants may authorize the relevant Participating International Affiliate to make periodic payroll deductions from the Participant’s compensation for the purpose of
purchasing Stock. The deductions shall be forwarded by the relevant Participating International Affiliate to the Trustee on behalf of the Participant. Such deductions must be at least the minimum and not more than the maximum amounts set forth on
Schedule 2 

  
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attached hereto for each Participating International Affiliate, which minimum and maximum amounts may be reviewed and adjusted annually by the Committee. Payroll deductions will be automatically
terminated when the Participant’s applicable maximum amount is reached. A payroll deduction may be decreased or increased (subject to the above limitations) once each calendar quarter by the Participant completing and returning the appropriate
payroll deduction form to the relevant Participating International Affiliate. A payroll deduction may be terminated at any time by the Participant giving written notice to the relevant Participating International Affiliate. A Participant who
terminates his or her payroll deduction may not re-enroll in the International Plan until the next calendar year, unless the termination of participation resulted from the Participant’s termination of employment and he or she is subsequently
reemployed by a Participating International Affiliate, in which case the Participant may re-enroll in the International Plan in the calendar quarter following his or her rehire date in accordance with the procedures set forth in Section 4.

 (b) Lump Sum Contributions. Participants may also make additional lump sum contributions each calendar quarter in
amounts not to exceed the applicable maximum amounts as set forth on Schedule 2. Such lump sum contributions shall be made to the relevant Participating International Affiliate which shall forward the contribution to the Trustee on behalf of the
Participant. Such lump sum contributions shall not be subject to the bonus provisions described in Section 6. 
 (c)
Currency Conversion. The Trustee shall or shall cause the Broker to convert all funds received from Participants in an Alternate Currency into United States dollars in accordance with procedures established by the Committee. 

SECTION 6 

BONUS CONTRIBUTIONS 
 6.1 Employer Contributions. Each month, the Participating International Affiliate which employs the Participant will forward to the Trustee for such Participant’s Account a bonus equal
to 25% of the amount contributed by each Participant in the form of payroll deductions pursuant to Section 5(a), subject to the limitations set forth therein. Notwithstanding the above, if a Participant sells shares of Stock acquired under this
International Plan within the first year after their purchase, the relevant Participating International Affiliate may terminate the payment of any further bonus contributions for such Participant. 

6.2 Taxation. The Participant is responsible for the payment of all income taxes, employment, social insurance, welfare and
other taxes under applicable law relating to the bonus contributions made by the relevant Participating International Affiliate, the purchase and sale of Stock pursuant to this International Plan and the distribution of Stock or cash to the
Participant in accordance with this International Plan. The Participating International Affiliate is authorized to make appropriate withholding deductions from each Participant’s compensation, which shall be in addition to any payroll
deductions made pursuant to Section 5, and to pay such amounts to the appropriate tax authorities in the relevant country or countries in satisfaction of any of the above tax liabilities of the Participant under applicable law. All such
payments of applicable withholding tax in any relevant jurisdiction shall be the obligation of the relevant Participating International Affiliate, and the Trustee shall have no obligation to make any payments to the appropriate tax authorities in
res of the tax liabilities of the Participants. 

  
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 SECTION 7 
 PURCHASES, SALES AND WITHDRAWALS 
 7.1 Forwarding Funds. All
funds deducted from a Participant’s compensation by the relevant Participating International Affiliate, the bonus contributions made by the relevant Participating International Affiliate and any lump sum contribution made by such Participant
shall be forwarded to the Trustee, together with a list of Participants and the amounts allocable to their respective Accounts. No interest shall be paid on such funds by the Company, the Participating International Subsidiaries or the Trustee.

 7.2 Purchasing Stock. Upon receipt of funds from the Participating International Affiliates, the Trustee shall
transfer such funds to the Broker and shall direct the Broker to, as promptly as practicable, purchase on the New York Stock Exchange, as agent for the Participants, as many whole shares of Stock as the aggregate of such funds will permit, subject
to applicable regulations. The relevant Participating International Affiliate shall pay commissions on the purchases of such Stock and such other charges for the Trustee’s and Broker’s services as may be agreed from time to time.

 7.3 Recordkeeping. The Trustee or its agent shall maintain individual Accounts for each Participant. Shares of
Stock shall be allocated by the Trustee or its agent at the average cost of Stock at the time of purchase to each Participant’s Account in proportion to the amount received by the Trustee or its agent for the account of each Participant.
Allocations shall be made in full shares of Stock and in fractional interests in shares to four decimal places. 
 7.4
Holding Stock. At the time of purchase of Stock under the International Plan, each Participant for whom funds were received shall immediately acquire full ownership of all Stock and of any fractional interest in Stock purchased for his
or her Account. The Broker shall hold all shares purchased in street name for and on behalf of the Trustee until: 
 (a) the
Participant requests that a certificate for some or all of the Stock in his or her Account be issued to such Participant, 
 (b)
the Participant requests the Trustee to sell some or all of the Stock in his or her Account, or 
 (c) the Participant’s
Account is terminated. 
 7.5 Distribution of Account. A Participant may request the Trustee to (a) deliver
certificates for all or some of the Stock held in the Participant’s Account or (b) sell some or all of the Stock held in the Participant’s Account as of any Distribution Date. If a Participant requests the Trustee to deliver
certificates for all or some of the Stock held in the Participant’s Account, such Stock shall, at the option of the Participant as stipulated to the Trustee in writing, be delivered (i) by means of electronic transfer to the brokerage or
bank account designated by the Participant or (ii) in hard copies by means of registered mail to the mailing address designated by the Participant. Selling commissions, the costs of converting U.S. dollars into the relevant

  
 -5-

 
Alternate Currency after such sale and other service charges of the Trustee and the Broker shall be borne by the Participant. Requests for a distribution of Stock certificates or the sale of
Stock must be submitted to the Trustee no later than the fifteenth (15th) day of the month in which the calendar quarter ends. Upon receipt of requests for distributions or sales, the Trustee shall aggregate the same and instruct the Broker to
sell the Stock on the date determined by the Broker in its discretion, but in no event later than the Distribution Date. The Trustee shall convert the proceeds of such sale to the Alternate Currency specified by the Participant pursuant to rules
established by the Committee. Such proceeds, minus any costs charged to the Participant for commissions, currency conversion and other related charges, shall be paid to the relevant Participating International Affiliate on or about the Distribution
Date. The relevant Participating International Affiliate will distribute such proceeds to the Participant as soon as administratively feasible after receiving such proceeds. Any gains or losses attributable to the conversion of United States dollars
to the Alternate Currency in which the distribution is made will serve to increase or decrease, as the case may be, the amount of the distribution to which the Participant is entitled. 

SECTION 8 

ACCOUNTS AND REPORTS 
 Each Participant shall receive quarterly, or at such other intervals as may be necessary or appropriate, a statement of activity from the Trustee or its agent which shall include the following
information: 
 (a) the amount contributed for the period by the Participant and the relevant Participating International
Affiliate pursuant to the International Plan; 
 (b) the number of shares purchased for the Participant’s Account during
the period; 
 (c) the total number of shares held in the Participant’s Account; and 

(d) such other information as the Committee shall specify from time to time. 

SECTION 9 

ENDING PARTICIPATION 
 9.1 Termination of Participation. A Participant may voluntarily terminate participation in the International Plan at any time by giving written notice to the Trustee and the Participating
International Affiliate by which he or she is employed. In addition, the Trustee may terminate a Participant’s Account and dispose of the Stock therein pursuant to Section 9.2 if the Participant dies or terminates employment for any reason
with the relevant Participating International Affiliate. A Participant whose participation in the International Plan terminates may not reenter the International Plan during the same calendar year, unless the termination of participation resulted
from the Participant’s termination of employment and he or she is subsequently reemployed by any Participating International Affiliate. 

  
 -6-

 9.2 Disposition of Account Upon Termination of Participation. A
Participant’s written notice of termination of participation shall include instructions to the relevant Participating International Affiliate as to the disposition of the Stock in his or her Account. If a Participant elects cash, the Trustee
shall direct the Broker to sell the Stock allocated to the Participant’s Account at the then current market price, and the Trustee shall deliver the proceeds, less any brokerage commissions, currency conversion costs and other, related charges,
to the Participating International Affiliate which employs the Participant, which Participating International Affiliate will in turn forward such proceeds to the Participant. If the terminating Participant elects to receive Stock certificates or
makes no election, the Trustee shall deliver to the relevant Participating International Affiliate for forwarding to the Participant the number of full shares of Stock in his or her Account plus cash for any fractional shares. In the event of the
death of a Participant, all elections shall be made by, and all distributions made to, the designated beneficiary of the Participant or the legal representative of the Participant’s estate, as provided in Section 11.2 below. 

SECTION 10 

RIGHTS AS A STOCKHOLDER 
 10.1 Voting and Other Rights. As soon as administratively practicable after the Trustee receives notice of a meeting of the shareholders of the Company, the Trustee, or its agent, shall
deliver to each Participant by mail or otherwise, all notices of meetings, proxy statements and other materials distributed by the Company to its shareholders. At the meeting, or any adjournment thereof, the Trustee will vote shares of Stock
credited to such Accounts as of the record date for such vote in accordance with the instructions received by the Trustee from Participants. The combined fractional shares of Participants will be voted to the extent possible to reflect the
instructions of the Participants. The Trustee will not vote any shares of Stock held in Accounts for which it has not received instructions from Participants in time to be processed. 

10.2 Dividends and Other Proceeds. Cash dividends received in respect of Stock held in Accounts shall be credited by the
Trustee to such Accounts. All such cash shall be reinvested in Stock as promptly as practicable following receipt thereof. The relevant Participating International Affiliate shall pay all regular commissions in connection with the purchase of Stock
constituting such reinvestment of cash dividends. Stock dividends or stock splits in respect of Stock held in the Accounts shall be credited to such Accounts without charge. The Trustee shall direct the Broker to sell all other securities and rights
to subscribe for shares received in respect of Stock, if any, held in the Accounts and the proceeds therefrom shall be treated in the same manner as cash dividends. All cash dividends payable on Stock held by the Trustee for the Accounts shall be
paid net of applicable United States withholding taxes on such dividends which shall be withheld by the Company and paid to the appropriate United States tax authorities. The Trustee or its agent shall annually notify each Participant as part of its
periodic reporting obligations of the amount of such withholding applicable to each Participant’s Account to enable such Participant to apply for any applicable tax credit in each such Participant’s country. 

  
 -7-

 SECTION 11 
 TRANSFER OF RIGHTS 
 11.1 Non-alienation. Notwithstanding
Section 7.4, no shares of Stock held in a Participant’s Account or any Participant’s interest in this International Plan shall be transferable by a Participant, subject to the Participant’s right to sell such Stock, receive Stock
certificates or terminate his or her participation in this International Plan as elsewhere provided herein, and no assets in any Account or any other benefit under this International Plan may in any manner be mortgaged, alienated, sold, transferred,
assigned, pledged, encumbered or charged, and any attempt to do so is void. No such assets in an Account or any such benefit shall be subject to the debts, contracts, liabilities, engagements or torts of the person entitled to such assets or
benefits. 
 11.2 Rights of Beneficiary. Unless otherwise required by local law or the Committee, a Participant
may, by signing a form furnished by the Committee, designate any legal or natural person or persons who shall be entitled to exercise the Participant’s rights hereunder or to which the Participant’s benefits are to be paid if the
Participant dies before receiving all benefits payable under this International Plan. A beneficiary designation will be effective only when the signed form is filed while the Participant is alive with the Participating International Affiliate which
employs the Participant. Filing a new signed beneficiary designation form will cancel all beneficiary designation forms signed earlier. If a Participant has not designated a beneficiary, the Participant’s Account shall be disposed of and
distributed by the Trustee to the Participating International Affiliate which employed the Participant, and the Participating International Affiliate shall forward such assets to the legal representative of the Participant’s estate in
accordance with applicable law. 
 SECTION 12 
 MISCELLANEOUS 
 12.1 Term of International Plan. Contingent
upon the consummation of the Merger, this International Plan shall be effective September 28, 2012, or such other date as the Merger is consummated, and shall remain in effect for a period of ten (10) years after such effective date,
unless earlier terminated as provided in Section 12.2(b). 
 12.2 Amendment and Termination. 

(a) Plan Amendment. The Company may, by written resolution of the Board or through action of the Compensation Committee of such
Board, at any time and from time to time, amend the International Plan in whole or in part; provided, that no amendment to the International Plan which would have the effect of materially increasing the cost of administering the Trust or the
obligations of the Trustee in connection with such administration shall be adopted by the Company without the prior written consent of the Trustee, which consent will not be unreasonably withheld. 

(b) Plan Termination. The Company may, at any time, by written resolution of the Board or through action of the Compensation
Committee of such Board, terminate the International Plan. In addition, the Board or the Compensation Committee of the Board may at any time terminate this International Plan as to any individual Participating International Affiliate. All shares of
Stock and cash, if any, in Accounts of affected Participants shall, pursuant to rules adopted by the Committee, be distributed as soon as administratively feasible after such termination. 

  
 -8-

 (c) Trust Fund. The funds from time to time held by the Trust hereunder shall at all
times be in a trust fund separate and apart from the assets of the Company and the Participating International Affiliates, and no part thereof shall be or become available to the Company, the Participating International Affiliates or to creditors of
the Company or the Participating International Affiliates under any circumstances. 
 12.3 Employment Relationship.

 (a) Tenure of Employment. Nothing in this International Plan shall confer on any Participant any express or implied
right to employment or continued employment by the Company or any Participating International Affiliate, whether for the duration of the International Plan or otherwise. 
 (b) Contract of Employment. This International Plan shall not form part of any contract of employment between the Company or any of the Participating International Affiliates nor shall this
International Plan amend, abrogate or affect any existing employment contract between the Company or any of the Participating International Affiliates and their respective employees. Nothing in this International Plan shall confer on any person any
legal or equitable right against the Company or any of its affiliates, directly or indirectly, or give rise to any cause of action at law or in equity against the Company or any of its affiliates. 

(c) Severance. Neither the Stock purchased hereunder, any bonus contributions made hereunder nor other benefits conferred hereby
shall form any part of the wages or salary of any Eligible Employees for purposes of severance pay or termination indemnities, irrespective of the reason for termination of employment. Under no circumstances shall any person ceasing to be an
employee of the Company or any of its affiliates be entitled to any compensation for any loss of any right or benefit under this International Plan which such employee might otherwise have enjoyed but for ceasing to be an employee, whether such
compensation is claimed by way of damages for wrongful or unfair dismissal, breach of contract or otherwise. 
 12.4
Voluntary Participation. Participation in the International Plan is entirely voluntary, and by maintaining the International Plan the Company is not making a recommendation as to whether any Eligible Employee should invest in Stock.
Investment in any Stock involves risk, and each Eligible Employee must decide whether to accept the risk of investing in Stock. 

12.5 Communications. The Company, a Participating International Affiliate or the Trustee may, unless otherwise prescribed
by applicable laws or regulations, provide the prospectus and any notices, forms or reports by using either paper or electronic means. 
 12.6 Acceptance of Terms. By participating in the International Plan, each Participant shall be deemed to have accepted all the conditions of the International Plan and the terms and
conditions of any rules and regulations adopted by the Committee or the Trustee or its agents and shall be fully bound thereby. 

  
 -9-

 Exhibit A 
 Special Rules – Germany 
 These special rules, adopted pursuant to Section 3.2 of
the Pentair Ltd. International Stock Purchase and Bonus Plan, modify the terms of such Plan as in effect in Germany as follows: 
 The following
section is added to Section 11, Transfer of Rights, of the International Plan: 
 11.3 Provisions Applicable in
Germany. Notwithstanding the foregoing, if prior to the transfer of the Stock in a Participant’s Account to such Participant’s designated beneficiary the Trustee receives a certified copy of a Certificate of Heirship
(“Erbschein”), then the Trustee shall transfer the relevant shares of Stock to only the person or persons named in such Certificate, without regard to whether such person demands the sale of Stock and payment in cash and without any
further obligation on the part of the Trustee to investigate such transferees’ rights. If the Trustee transfers the Stock to a designated beneficiary or a person named in the Erbschein, the Trustee shall be released from all obligations to the
Participant and the Participant’s successors, assigns, and other persons who may have an interest in the Participant’s Account. 

  
 A-1

 Schedule 1 
 Participating International Affiliates 
  

			
	         Participating

International Affiliate
	  	Effective Date
	 Schroff GmbH
	  	August 31, 1998
	 Flex Elektrowerkzeuge GmbH
	  	January 1, 1999
	 Pentair Water France S.A.S.
	  	October 1, 1999
	 Schroff S.A.S.
	  	February 1, 1999
	 Schroff UK Ltd.
	  	September 1, 1999
	 Schroff K.K.
	  	April 1, 1999
	 Pentair Water Belgium W.V.
	  	January 1 , 2002
	 Pentair Water Filtration UK Ltd.
	  	September 1, 2003
	 Pentair Water Filtration France SAS
	  	September 1, 2003
	 Schroff S.r.l.
	  	September 1, 2003
	 Pentair Water Italy S.r.l.
	  	September 1, 2003

  
 Schedule-1

 Schedule 2 
 Minimum and Maximum Deductions 
  

													
	         Participating

International Affiliate
	  	Monthly
Minimum
Deduction	 	  	Monthly
Maximum
Deduction	 	  	Quarterly
Maximum
Contribution	 
	 Schroff GmbH
	  	€	10	  	  	€	750	  	  	€	3,000	  
	 Flex Elektrowerkzeuge GmbH
	  	€	10	  	  	€	750	  	  	€	3,000	  
	 Pentair Water France S.A.
	  	€	10	  	  	€	750	  	  	€	3,000	  
	 Schroff S.A.S.
	  	€	10	  	  	€	750	  	  	€	3,000	  
	 Schroff UK Ltd.
	  	£	6	  	  	£	450	  	  	£	1,800	  
	 Schroff K.K.
	  	¥	1,400	  	  	¥	100,000	  	  	¥	400,000	  
	 Pentair Water Belgium N.V.
	  	€	10	  	  	€	750	  	  	€	3,000	  
	 Pentair Water Filtration UK, Ltd.
	  	€	10	  	  	€	750	  	  	€	3,000	  
	 Pentair Water Filtration France SAS
	  	€	10	  	  	€	750	  	  	€	3,000	  
	 Schroff S.r.l.
	  	€	10	  	  	€	750	  	  	€	3,000	  
	 Pentair Water Italy S.r.l.
	  	€	10	  	  	€	750	  	  	€	3,000	  

  
 Schedule-2EX-10.26

 Exhibit 10.26 
 MORTGAGE LOAN AGREEMENT 
 by and between 

SOUTHERN HEALTH CORPORATION OF HOUSTON, INC., 
 a Georgia corporation (“Borrower”) 
 and 

STILLWATER NATIONAL BANK AND TRUST COMPANY (“Lender”) 

 TABLE OF CONTENTS 

 

							
	 1.
	  	LENDING AGREEMENT	  	 	1	  
	 2.
	  	BORROWER’S NOTE	  	 	2	  
		  	 2.1        Amount
	  	 	2	  
		  	 2.2        Interest
	  	 	2	  
		  	 2.3        Payments
	  	 	2	  
		  	 2.4        Maturity
	  	 	3	  
		  	 2.5        Advances
	  	 	3	  
	 3.
	  	RECOURSE	  	 	3	  
	 4.
	  	COLLATERAL SECURITY	  	 	3	  
		  	 4.1        Deed of Trust
	  	 	3	  
		  	 4.2        Assignment of Rents
	  	 	3	  
		  	 4.3        Security Interest
	  	 	3	  
		  	 4.4        Stock Pledge Agreement
	  	 	4	  
		  	 4.5        Assignment of Construction Contract
	  	 	4	  
		  	 4.6        Assignment of Architectural Agreement
	  	 	5	  
		  	 4.7        Assignment of Plans and Specifications
	  	 	5	  
	 5.
	  	GUARANTIES	  	 	5	  
		  	 5.1        Unlimited Guaranties
	  	 	5	  
		  	 5.2        USDA Limited Guaranty
	  	 	5	  
	 6.
	  	REPRESENTATIONS AND WARRANTIES	  	 	5	  
		  	 6.1        Borrower’s Existence
	  	 	5	  
		  	 6.2        Litigation
	  	 	6	  
		  	 6.3        No Default
	  	 	6	  
		  	 6.4        Ownership
	  	 	6	  
		  	 6.5        Financial Statements
	  	 	6	  
		  	 6.6        Full Disclosure
	  	 	6	  
		  	 6.7        Survival of Representations and Warranties
	  	 	6	  
	 7.
	  	CONDITIONS PRECEDENT TO LOAN	  	 	7	  
		  	 7.1        Loan Documents
	  	 	7	  
		  	 7.2        Authority
	  	 	7	  
		  	 7.3        Organization
	  	 	7	  
		  	 7.4        Good Standing
	  	 	8	  
		  	 7.5        Title
	  	 	8	  
		  	 7.6        Compliance with Governmental Regulations
	  	 	8	  
		  	 7.7        Environmental Report
	  	 	8	  
		  	 7.8        Survey
	  	 	8	  
		  	 7.9        Appraisal
	  	 	8	  
		  	 7.10      Origination Fee
	  	 	8	  
		  	 7.11      Financial Statements
	  	 	9	  
		  	 7.12      Tax returns
	  	 	9	  
		  	 7.13      Opinion of Borrower’s Counsel
	  	 	9	  
		  	 7.14      Conditional Commitment
	  	 	9	  
		  	 7.15      Balance Sheet Equity
	  	 	9	  
		  	 7.16      Site Inspections
	  	 	9	  
		  	 7.17      Licenses
	  	 	9	  
		  	 7.18      No Prior Liens
	  	 	9	  
		  	 7.19      Insurance
	  	 	9	  
		  	 7.20      Releases
	  	 	10	  
		  	 7.21      Chatham Subordination
	  	 	10	  
	 8.
	  	INSURANCE	  	 	10	  
		  	 8.1        Special Perils Insurance
	  	 	10	  
		  	 8.2        Flood Insurance
	  	 	11	  

							
		  	 8.3        Boiler and Machinery Insurance
	  	 	11	  
		  	 8.4        Builder’s Risk Insurance
	  	 	11	  
		  	 8.5        Business Interruption Insurance
	  	 	12	  
		  	 8.6        Liability Insurance
	  	 	12	  
		  	 8.7        Statutory Employees’ Insurance
	  	 	12	  
		  	 8.8        Fidelity Bonds
	  	 	13	  
		  	 8.9        Medical Malpractice Insurance
	  	 	13	  
		  	 8.10      Documentation
	  	 	13	  
		  	 8.11      Policy Requirements
	  	 	13	  
		  	 8.12      Blanket Coverage
	  	 	14	  
		  	 8.13      Protection of Lender’s Interest
	  	 	14	  
		  	 8.14      Lender’s Rights; No Liability
	  	 	15	  
	 9.
	  	ACCOUNT COLLECTIONS	  	 	15	  
	 10.
	  	COVENANTS	  	 	15	  
		  	 10.1      Performance of Obligations
	  	 	16	  
		  	 10.2      Information
	  	 	16	  
		  	 10.3      Guarantor Financial Statements
	  	 	16	  
		  	 10.4      Tax Returns
	  	 	17	  
		  	 10.5      Accounts Receivable Reports
	  	 	17	  
		  	 10.6      Financial Covenants
	  	 	18	  
		  	 10.7      Financial Ratios Compliance Certificate
	  	 	19	  
		  	 10.8      Litigation
	  	 	19	  
		  	 10.9      Construction Standards
	  	 	19	  
		  	 10.10    No Liens
	  	 	20	  
		  	 10.11    Use of Loan Proceeds
	  	 	20	  
		  	 10.12    Estoppel Certificates
	  	 	20	  
		  	 10.13    Payment of Taxes
	  	 	20	  
		  	 10.14    Books and Records
	  	 	20	  
		  	 10.15    Lender’s Access
	  	 	20	  
		  	 10.16    Post Completion Survey
	  	 	21	  
		  	 10.17    No Merger
	  	 	21	  
		  	 10.18    No Sale
	  	 	22	  
		  	 10.19    Business Restrictions
	  	 	22	  
		  	 10.20    Subcontractors
	  	 	22	  
		  	 10.21    Other Information
	  	 	22	  
		  	 10.22    Inspections
	  	 	22	  
		  	 10.23    Contingent Liabilities
	  	 	22	  
		  	 10.24    Other Agreements
	  	 	23	  
		  	 10.25    Additional Documents
	  	 	23	  
		  	 10.26    Other Indebtedness
	  	 	23	  
		  	 10.27    Bank Accounts
	  	 	23	  
		  	 10.28    Management Fees
	  	 	23	  
		  	 10.29    Intercompany Loans; Dividends
	  	 	23	  
		  	 10.30    Equal Employment Opportunity
	  	 	24	  
		  	 10.31    USDA Annual Fee Escrow
	  	 	24	  
		  	 10.32    Environmental Laws
	  	 	24	  
		  	 10.33    Environmental Indemnification
	  	 	25	  
		  	 10.34    Building Laws Indemnification
	  	 	25	  
		  	 10.35    SNDAs
	  	 	25	  
		  	 10.36    Maintenance and Covenant against Waste; MEP Inspection
	  	 	25	  
		  	 10.37    USDA Covenants
	  	 	25	  
	 11.
	  	ADMINISTRATION OF CONSTRUCTION ESCROW ACCOUNT	  	 	26	  
		  	 11.1      Purpose
	  	 	26	  
		  	 11.2      Conditions Subsequent to Escrow Funding
	  	 	26	  
		  	 11.3      Requests for Draws
	  	 	28	  
		  	 11.4      Inspection
	  	 	29	  

  
 ii 

							
		  	 11.5      Disbursements
	  	 	30	  
		  	 11.6      Retainage
	  	 	30	  
		  	 11.7      Termination of Drawing Rights
	  	 	30	  
	 12.
	  	ANTI-MONEY LAUNDERING AND INTERNATIONAL TRADE CONTROLS	  	 	31	  
		  	 12.1      Compliance with International Trade Control Laws and OFAC
Regulations
	  	 	31	  
		  	 12.2      Borrower’s Funds
	  	 	31	  
	 13.
	  	DEFAULT	  	 	32	  
		  	 13.1      Nonpayment of Notes
	  	 	32	  
		  	 13.2      Working Capital Loan Agreement Default
	  	 	32	  
		  	 13.3      Chatham Credit Agreement Default
	  	 	33	  
		  	 13.4      Other Nonpayment
	  	 	33	  
		  	 13.5      Breach of Covenants
	  	 	33	  
		  	 13.6      Creation of Liens
	  	 	33	  
		  	 13.7      Change of Ownership
	  	 	33	  
		  	 13.8      Liquidation or Disposition of Assets
	  	 	33	  
		  	 13.9      Judgment
	  	 	34	  
		  	 13.10    Casualty Loss; Condemnation
	  	 	34	  
		  	 13.11    Variance from Plans and Specifications
	  	 	34	  
		  	 13.12    Work Stoppage
	  	 	34	  
		  	 13.13    Bankruptcy
	  	 	34	  
		  	 13.14    Termination of Existence
	  	 	34	  
		  	 13.15    Governmental Requirements
	  	 	34	  
		  	 13.16    Representations
	  	 	35	  
		  	 13.17    Loan Documents
	  	 	35	  
		  	 13.18    Revocation of Authorization
	  	 	35	  
		  	 13.19    Loss of Licenses
	  	 	35	  
		  	 13.20    Certificate of Completion
	  	 	35	  
	 14.
	  	REMEDIES	  	 	35	  
		  	 14.1      Acceleration of Note
	  	 	35	  
		  	 14.2      Selective Enforcement
	  	 	36	  
		  	 14.3      Completion by Lender
	  	 	36	  
		  	 14.4      Cumulative Remedies
	  	 	37	  
		  	 14.5      Deposits; Setoff
	  	 	37	  
		  	 14.6      Appointment of Receiver
	  	 	37	  
	 15.
	  	MISCELLANEOUS	  	 	37	  
		  	 15.1      Origination
	  	 	37	  
		  	 15.2      Expenses
	  	 	37	  
		  	 15.3      Notices
	  	 	38	  
		  	 15.4      Amendment and Waiver
	  	 	39	  
		  	 15.5      Non-Waiver; Cumulative Remedies
	  	 	39	  
		  	 15.6      Applicable Law
	  	 	39	  
		  	 15.7      Descriptive Headings
	  	 	39	  
		  	 15.8      Integrated Agreement
	  	 	39	  
		  	 15.9      Time of Essence
	  	 	40	  
		  	 15.10    Binding Effect
	  	 	40	  
		  	 15.11    Third Party Beneficiary
	  	 	40	  
		  	 15.12    Right to Defend
	  	 	40	  
		  	 15.13    Participation
	  	 	40	  
		  	 15.14    Disclosure of Information; Confidentiality
	  	 	40	  
		  	 15.15    Accuracy of Information
	  	 	41	  
		  	 15.16    Maximum Legal Rate of Interest
	  	 	41	  
		  	 15.17    No Responsibility of Lender
	  	 	41	  
		  	 15.18    No Leasing or Drilling
	  	 	42	  
		  	 15.19    Notice of Title Protection
	  	 	42	  
		  	 15.20    Jurisdiction and Venue
	  	 	42	  
		  	 15.21    Counterparts
	  	 	42	  

  
 iii

							
		  	 15.22    New Loan
	  	 	42	  
		  	 15.23    USDA Consent
	  	 	43	  
		  	 15.24    Defined Terms
	  	 	43	  

  
 iv 

 MORTGAGE LOAN AGREEMENT 

THIS LOAN AGREEMENT (the “Loan Agreement”) is entered into effective this 5th day of July, 2012 (the
“Effective Date”), by and between SOUTHERN HEALTH CORPORATION OF HOUSTON, INC., a Georgia corporation (“Borrower”) and STILLWATER NATIONAL BANK AND TRUST COMPANY (“Lender”). 

RECITALS 
 WHEREAS, Borrower has requested that Lender extend certain credit and related financial accommodations including a loan of $9,975,000 to Borrower in connection with the refinancing of, and the making of
certain capital improvements to, Borrower’s real estate and related improvements in Houston, Mississippi (the “Mortgage Loan”); 
 WHEREAS, Lender has agreed to accommodate the request from Borrower for the loan subject to the provisions of this Loan Agreement including the receipt of certain guaranties; and 

WHEREAS, (i) SunLink Healthcare, LLC, a Georgia limited liability company (“Healthcare”), and SunLink
Health Systems, Inc., an Ohio corporation (“SunLink”) are each willing to separately guarantee 100% of the indebtedness and obligations of Borrower to Lender pursuant to their respective guaranties of even date herewith and (ii) the
United States Department of Agriculture is willing to guarantee 70% of the Mortgage Loan pursuant to a USDA 70% Guaranty Agreement; and 
 WHEREAS, concurrently herewith Lender is also extending certain credit to Borrower pursuant to a separate Working Capital Loan Agreement for a loan of up to one million dollars for working capital and
similar general corporate purposes dated as of an even date herewith with such loan evidenced by a revolving promissory note; 
 NOW THEREFORE, in consideration of the mutual covenants, conditions and agreements set forth herein, and other good and valuable consideration, the receipt and adequacy of which the parties hereto
acknowledge, Borrower and Lender hereby agree as follows: 
 1. LENDING AGREEMENT. Subject to the terms and
conditions hereinafter set forth, Lender agrees to lend to Borrower, and Borrower agrees to borrow from Lender the sum of NINE MILLION NINE HUNDRED SEVENTY-FIVE THOUSAND AND NO/100THS DOLLARS ($9,975,000.00) (the “Loan Commitment”), to be
used by Borrower solely for the purposes of (a) refinancing Borrower’s existing real estate mortgages and/or deeds of trust; (b) allowing Borrower to fund EIGHT HUNDRED FIFTY THOUSAND DOLLARS AND NO 100THS DOLLARS ($850,000.00) to the
Construction Escrow Account (defined in Section 4.3) to finance a portion of the cost of constructing a medical office building (“MOB”) as reflected in the Construction Budget (defined in Section 11.2.5), all in connection with two
parcels of real property and improvements located in Houston, Chickasaw County, Mississippi described at Exhibit “A” hereto (the “Property”); and (c) paying all fees and expenses required to be paid by Borrower hereunder.

 2. BORROWER’S NOTE. Borrower will execute and deliver to Lender a term
promissory note of even date herewith in form and substance and payable on terms approved by Lender (the “Mortgage Note”) having the following terms: 
  

	 	2.1.	 Amount. The principal face amount will be NINE MILLION NINE HUNDRED SEVENTY-FIVE THOUSAND AND NO/100THS DOLLARS ($9,975,000.00).

  

	 	2.2.	 Interest. The Mortgage Note will bear interest at the interest rate equal to the greater of (a) six percent (6.0%) per annum; or
(b) the Prime Rate plus one and one half percent (1.5%) per annum, which rate will be prospectively adjusted on June 30, 2012 and on the last day of every third month thereafter to reflect any change in the Prime Rate as in effect on
such date (the “Interest Rate”). “Prime Rate” means the Prime Rate as published in the “Money Rates” Section of the Wall Street Journal, which rate is not necessarily the lowest rate of interest charged by
Lender. All interest on the Mortgage Note shall be calculated for the actual number of days elapsed at a per diem charge based on a year consisting of 360 days. 

 

	 	2.3.	 Payments. 

  

	 	2.3.1.	 Regular Payments. Commencing August 1, 2012 and on the 1st day of each month thereafter, Borrower will make equal monthly payments in an
amount sufficient to fully amortize principal and interest over the remaining term of the Mortgage Note at the Interest Rate. The payment amount will be adjusted each time the Interest Rate is adjusted to reflect the change in the Interest Rate.

  

	 	2.3.2.	 Additional Payments. The first $500,000.00 of the incentive payments received by Borrower after the Effective Date pursuant to the Health
Information Technology for Economic and Clinical Act of 2009 (the “EHR Payments”), the terms and conditions of which are more particularly described at 42 U.S.C. § 1395ww(n), 42 C.F.R. § 495.104, et seq., 75
FED. REG. 44314, will be paid by Borrower to Lender within five (5) days of Borrower’s receipt thereof to be applied to the outstanding balance owing under the Mortgage Note. Unless a Default shall have
occurred and then be continuing, Borrower will be entitled to use EHR Payments in excess of $500,000.00 in Borrower’s sole and absolute discretion. If a Default shall have occurred and then be continuing, all EHR Payments after and during such
Default will be paid by Borrower to Lender within five (5) days after Borrower’s receipt thereof to be applied by Lender to reduce the outstanding principal balance of the Mortgage Note. 

 

	 	2.3.3.	 Prepayment Premium. Borrower will have the right to prepay the Mortgage Note in whole or in part at any time and from time to time with
interest accrued to the date of prepayment on the amount prepaid, conditioned upon ten (10) days prior written notice to Lender of Borrower’s intent to prepay 

  
 2 

	 	 
the Mortgage Note accompanied by delivery of the “Prepayment Premium” (defined below) to Lender. The “Prepayment Premium” shall be equal to five percent (5.0%) of the
amount of the outstanding principal balance of the Mortgage Note being repaid as of the date of the prepayment if such prepayment date is on or before the fifth anniversary date of the Mortgage Note. No Prepayment Premium shall be due for prepayment
made after the fifth anniversary of the Mortgage Note or prepayment made from EHR Payments. 

  

	 	2.4.	 Maturity. The entire unpaid principal balance plus all accrued interest owing on the Mortgage Note shall be due and payable on July 5,
2027 (the “Maturity Date”). 

  

	 	2.5.	 Advances. The Loan Commitment will be fully funded under the Mortgage Note upon the satisfaction of the conditions set forth in
Section 7 below. 

 3. RECOURSE. The Loan Commitment will be full recourse to Borrower
under the Mortgage Note, full recourse to SunLink and Healthcare under their guaranties, and limited recourse to USDA under its guaranty. 
 4. COLLATERAL SECURITY. The performance of all covenants and agreements contained in this Loan Agreement and in the other documents executed or delivered as a part of this transaction and
the payment of the Mortgage Note and all renewals, amendments and modifications thereof, all interest thereon and expenses of collection thereof shall be secured by the following: 

 

	 	4.1.	 Deed of Trust. Borrower shall grant Lender a first priority lien covering the Property together with all buildings, fixtures and improvements
now or hereafter located thereon to be evidenced by a deed of trust in form and substance approved by Lender (the “Deed of Trust”). 

  

	 	4.2.	 Assignment of Rents. Borrower shall grant Lender a first priority security interest in all of Borrower’s leases and rents with respect
to the Property pursuant to the terms of an assignment of leases and rents covering the Property in form and substance approved by Lender (the “Assignment of Rents”). 

 

	 	4.3.	 Security Interest. Borrower shall grant Lender (i) a first priority security interest covering all of Borrower’s medical equipment,
furniture, hospital beds, kitchen equipment and supplies, computer equipment, computer hardware, computer software, computer software licenses, general intangibles, and all other tangible personal property, whether now owned or hereafter acquired,
and all proceeds, products, rents, profits and income from the sale thereof (the “Equipment”); (ii) a first priority security interest covering the Borrower’s Account No. xxxxxxx (the “Construction Escrow Account”), and
Account No. xxxxxxx, a restricted account for the USDA origination and guaranty 

  
 3 

	 	 
fee (the “USDA Fee Account”), both maintained by Borrower with Lender (together, the “Mortgage Accounts”), (iii) a second priority security interest in all of
Borrower’s other accounts and deposit accounts with Lender, including but not limited to Account No. xxxxxxx (the “Medicare Account”) and Account No. xxxxxxx (the “Operating Account”), both maintained by the Borrower with
the Lender (all such accounts collectively, the “Deposit Accounts”), (iv) a second priority security interest in Borrower’s goods, chattels, revenue, income, certificates of title, medical supplies, and equipment (collectively,
the “Goods”), and (v) a second priority security interest in Borrower’s accounts receivable, government and non-government health care accounts receivable, including but not limited to health-care-insurance receivables, contract
rights and inventory whether now owned or hereafter acquired, and all proceeds, products, rents, profits, and income therefrom (collectively, the “Receivables”). The Equipment, the Mortgage Accounts, the Deposit Accounts, the Goods and the
Receivables are collectively referred to herein as the “Borrower’s Personal Property”. The security interests granted shall be evidenced by one or more security agreements in form and substance approved by Lender (the “Security
Agreement”). The lien covering the Deposit Accounts, the Goods and the Receivables will be subordinate only to the lien granted by Borrower to Lender in the same collateral to secure the Working Capital Note, but will be released by Lender upon
satisfaction of the following conditions: 

  

	 	4.3.1.	 Lender’s commitment under the Working Capital Loan Agreement is terminated, and 

 

	 	4.3.2.	 Indebtedness to the Lender under the Working Capital Loan Agreement is paid in full, provided that, in the event such indebtedness is refinanced
with another lender, Lender shall have consented, no such consent to be unreasonably withheld, delayed or conditioned, and entered into an appropriate, commercially reasonable intercreditor agreement with the replacement lender, which replacement
lender would have a senior lien on the Deposit Accounts, the Goods and the Receivables; and 

  

	 	4.3.3.	 No Default under this Loan Agreement shall have occurred and then be continuing. 

 

	 	4.4.	 Stock Pledge Agreement. In support of the unlimited guaranty to be delivered by Healthcare, Healthcare shall pledge 100% of the stock and
ownership interests in Borrower to Lender, to be evidenced by a Stock Pledge Agreement in form and substance approved by Lender (the “Stock Pledge Agreement”) and in connection therewith Healthcare shall deliver to Lender all original
stock certificates (the “Stock Certificates”) together with a stock power endorsed in blank (the “Stock Power”). 

  

	 	4.5.	 Assignment of Construction Contract. Borrower shall grant Lender a first priority security interest in Borrower’s interest under the
Construction Contract (as defined in Section 11.2.6) pursuant to an assignment thereof in form and substance approved by Lender (the “Assignment of Construction Contract”). 

  
 4 

	 	4.6.	 Assignment of Architectural Agreement. Borrower shall grant Lender a first priority security interest in Borrower’s interest in the
Architectural Agreement (as defined in Section 11.2.7) pursuant to an assignment thereof in form and substance approved by Lender (the “Assignment of Architectural Agreement”). 

 

	 	4.7.	 Assignment of Plans and Specifications. Borrower shall grant Lender a first priority security interest in Borrower’s Plans and
Specifications (as defined in Section 11.2.4) pursuant to an assignment thereof in form and substance approved by Lender (the “Assignment of Plans”). 

5. GUARANTIES. Payment of the Mortgage Note will be guaranteed as follows: 

 

	 	5.1.	 Unlimited Guaranties. SunLink and Healthcare shall each guarantee payment of all indebtedness evidenced by the Mortgage Note, to be evidenced
by guaranty agreements in form and substance approved by Lender (respectively, the “SunLink Guaranty” and the “Healthcare Guaranty”). SunLink and Healthcare are sometimes referred to hereafter together as the
“Guarantors”. 

  

	 	5.2.	 USDA Limited Guaranty. The United States Department of Agriculture or any of the agencies thereof approved by Lender (individually and
collectively, the “USDA”) shall guarantee 70% of the indebtedness evidenced by the Mortgage Note to be evidenced by a USDA 70% Guaranty Agreement in form and substance approved by Lender and USDA pursuant to a certain Conditional
Commitment for Guarantee issued by the USDA, a true and correct copy of which is attached at Exhibit “B” hereto (the “Conditional Commitment”). 

6. REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants that: 

 

	 	6.1.	 Borrower’s Existence. Borrower is, and will continue to be a corporation, duly incorporated and validly existing under the laws of the
State of Georgia; Borrower has adequate power, authority and legal right to own and hold the Property; Borrower is or will be, in all material respects, duly authorized, qualified and licensed under all applicable laws, regulations, ordinances and
orders of public authorities which in any such case is material to the ability of Borrower to carry on its business in the development, construction, equipping, operating and leasing of the Property; Borrower has adequate authority, power and legal
right to enter into and carry out the provisions of this Loan Agreement and other documents contemplated herein and to consummate the transactions contemplated hereby. 

  
 5 

	 	6.2.	 Litigation. All litigation in which the Borrower is involved as of the date hereof is set forth on Schedule “6.2” hereto. There is
no action, suit, proceeding or investigation pending or threatened against Borrower, or any of the owners of Borrower which would reasonably be expected to materially adversely affect Borrower, the Property or any of Borrower’s Personal
Property or materially impair the ability of Borrower to carry on its business substantially as now conducted or contemplated or result in any substantial liability above applicable deductibles not adequately covered by insurance.

  

	 	6.3.	 No Default. The making and performance by Borrower of this Loan Agreement or the documents to be executed in connection herewith will not
violate any material provision or constitute a material default under any indenture, agreement or instrument to which Borrower, the Property or any material portion of the Borrower’s Personal Property is bound or affected.

  

	 	6.4.	 Ownership. Borrower owns good marketable fee title to the Property, and Borrower has good title to Borrower’s Personal Property and,
upon completion of construction and/or installation and payment therefor, all of its other properties and assets, real or personal, tangible or intangible, which are or are to be constructed, owned, installed, or used in connection with any of the
Property, and none of such properties or assets is or will be subject to any mortgage, deed of trust, pledge, security interest, encumbrance, lien or charge of any kind excluding only “Permitted Encumbrances” as set forth at Schedule
“6.4” hereto. 

  

	 	6.5.	 Financial Statements. Except as set forth on Schedule “6.5A” hereto, Borrower’s and Guarantors’ financial statements
heretofore delivered to Lender (“Historical Financial Statements”) are true and correct in all material respects, have been prepared in accordance with United States generally accepted accounting principles consistently applied (except in
the case of unaudited financial statements, subject to the absence of financial footnotes and to normal and recurring year-end adjustments that are not likely to be material in amount) (“GAAP”), and present in accordance with GAAP the
financial condition reflected therein as of the times and for the respective periods referred to therein. For purposes of this Section 6.5, “Historical Financial Statements” means those financial statements set forth on Schedule 6.5B.

  

	 	6.6.	 Full Disclosure. Neither this Loan Agreement nor any statements or documents of Borrower referred to herein or delivered by Borrower pursuant
to this Loan Agreement contains any untrue statement of a material fact. 

  

	 	6.7.	 Survival of Representations and Warranties. All covenants, representations and warranties made herein and under all documents executed
pursuant hereto shall survive the making of the 

  
 6 

	 	 
loans hereunder and the delivery of the Mortgage Note and other instruments executed in connection therewith until complete repayment of the Mortgage Note and all renewals and modifications
thereof. Each request by Borrower for an advance hereunder shall constitute an affirmation that the foregoing representations and warranties remain true and correct as of the date of such request, or if given as of a specific date, as of such date
unless otherwise disclosed, except with respect to financial statements superseded by subsequent reporting to Lender. 

 7. CONDITIONS PRECEDENT TO LOAN. As soon as all of the conditions set forth at Sections 7.1 through 7.21 hereof have been satisfied, and so long as no Default has occurred hereunder, Lender
will advance the entire Loan Commitment from time to time, subject to the terms of this Loan Agreement, to be used solely for the purposes set forth in Section 1 hereof. 

 

	 	7.1.	 Loan Documents. This Loan Agreement, the Mortgage Note, the Deed of Trust, the Assignment of Rents, the Security Agreement, the Stock Pledge
Agreement, the Stock Certificates, the Stock Power, the Account Collection Agreement, the Environmental Indemnity, the Building Laws Indemnity, the SunLink Guaranty, the Healthcare Guaranty, the USDA 70% Guaranty Agreement and all other documents
executed pursuant thereto or in connection therewith as might be required by Lender (all of the foregoing are referred to herein as the “Loan Documents”) shall have been duly authorized, executed and delivered to Lender.

  

	 	7.2.	 Authority. A certificate of the Secretary or Assistant Secretary of Borrower, SunLink and Healthcare (or other appropriate officer, including
in the case of Healthcare, its sole member) dated as of the Effective Date and certifying to the following: 

  

	 	7.2.1.	 A true and correct copy of the corporate (or other) resolutions of such the applicable entity authorizing the execution, delivery and performance of
the Loan Documents to which such entity is a party contemplated hereby and thereby; 

  

	 	7.2.2.	 The incumbency, names, titles and signatures of the officers of such entity authorized to execute the Loan Documents to which such entity is a
party. 

  

	 	7.3.	 Organization. A certificate of the Secretary or Assistant Secretary of Borrower, SunLink and Healthcare (or other appropriate officer,
including in the case of Healthcare, its sole member) dated as of the Effective Date and certifying to the following: 

  

	 	7.3.1.	 A true and correct copy of the Articles of Incorporation or Certificate of Incorporation or Organization (or the equivalent) of each such entity
with all amendments thereto, certified by the appropriate governmental official of the jurisdiction of incorporation or organization as of a date not more than thirty (30) days prior to the Effective Date; and 

  
 7 

	 	7.3.2.	 A true and correct copy of the bylaws (or other constitutive documents such as a limited liability company operating agreement) for the applicable
entity. 

  

	 	7.4.	 Good Standing. A certificate of good standing for each of Borrower, SunLink and Healthcare in the jurisdiction of its incorporation or
organization and, in the case of Borrower, its good standing as a foreign corporation in the State of Mississippi, in each case certified by the appropriate governmental officials as of a date not more than thirty (30) days prior to the
Effective Date. 

  

	 	7.5.	 Title. A title commitment for a $9,975,000.00 mortgagee’s title insurance policy insuring the first priority status of the Deed of Trust
shall have been issued to Lender by Statewide Title Services, Inc., as agent for Fidelity National Title Group (the “Title Insurer”) satisfactory to Lender reflecting that fee simple title in all of The Property is vested in Borrower,
reflecting only those title exceptions approved by Lender and containing affirmative coverage against materialmen’s liens, an access endorsement, survey coverage, comprehensive endorsement, a zoning endorsement, a variable rate endorsement, and
a tax lot endorsement, and which removes the creditor’s rights exclusion and the arbitration provision. 

  

	 	7.6.	 Compliance with Governmental Regulations. Evidence to the satisfaction of Lender shall have been made available to Lender that (i) the
Property complies in all material respects with all applicable zoning, subdivision, environmental, air quality, flood hazard, fire safety, planning, building and other governmental laws, ordinances, codes, regulations or private use restrictions to
the extent any failure to do so would materially adversely affect the ability of Borrower to carry on its business substantially as presently conducted; (ii) Borrower holds all material licenses and permits required by law for Borrower to
operate Borrower’s hospital, nursing home and medical office businesses on the Property. 

  

	 	7.7.	 Environmental Report. Lender must have received a Phase I Environmental Report covering all of the Property reflecting environmental
conditions satisfactory to Lender. 

  

	 	7.8.	 Survey. At Borrower’s expense, an ALTA survey of the Property prepared by a licensed civil engineer or a surveyor approved by Lender
shall have been delivered to Lender, which shall be prepared within sixty (60) days prior to the date hereof in compliance with the requirements of Lender. 

 

	 	7.9.	 Appraisal. Lender shall have received an “as-complete” appraisal in form and substance satisfactory to Lender and reflecting a
value for the completed MOB and all of the existing Property acceptable to Lender. 

  

	 	7.10.	 Origination Fee. Borrower shall have paid or concurrently from the proceeds of the Mortgage Loan shall pay to Lender a $47,375.00 origination
fee, and Borrower shall have paid to Lender for the benefit of the USDA the $209,475.00 USDA origination fee which will be deposited in the USDA Guarantee Fee Account with Lender subject to the SNB Security Agreement, on or before the date of this
Loan Agreement. 

  
 8 

	 	7.11.	 Financial Statements. The financial statements of Borrower, SunLink and Healthcare as of the end of the most recent quarter shall have been
delivered to Lender. 

  

	 	7.12.	 Tax returns. The filed federal income tax returns for the fiscal year ended June 30, 2011 for Borrower, SunLink and Healthcare shall
have been delivered to and approved by Lender. 

  

	 	7.13.	 Opinion of Borrower’s Counsel. An opinion from Borrower’s counsel in form and substance satisfactory to Lender shall have been
delivered to Lender as to the due existence and good standing of Borrower, SunLink and Healthcare, and the due authorization of the execution and delivery of the Loan Documents, as applicable, by Borrower, SunLink and Healthcare.

  

	 	7.14.	 Conditional Commitment. Lender shall have received the fully executed Conditional Commitment from the USDA having terms and conditions
satisfactory to Lender, together with all documentation satisfactory to Lender evidencing the USDA’s approval of the substitution of Lender as Lender in the Conditional Commitment. 

 

	 	7.15.	 Balance Sheet Equity. Lender shall have received documentation satisfactory to Lender evidencing that Borrower has a minimum of ten percent
(10%) tangible balance sheet equity as of the date of this Loan Agreement. Borrower’s tangible balance sheet equity will be determined in accordance with USDA requirements. 

 

	 	7.16.	 Site Inspections. The Property shall have been inspected and approved by Lender. 

 

	 	7.17.	 Licenses. Borrower shall have provided Lender with copies of all material licenses and permits required by law for Borrower to operate Trace
Regional Hospital, Floy Dyer Manor nursing home, and the existing medical office businesses on the Property. 

  

	 	7.18.	 No Prior Liens. Lender shall have been provided with written documentation satisfactory to Lender that no liens, other than those in favor of
Lender and those included as Permitted Encumbrances, have been filed against the Property or Borrower’s Personal Property. 

  

	 	7.19.	 Insurance. Borrower shall have obtained all of the insurance as required by and in accordance with Section 8 hereof.

  
 9 

	 	7.20.	 Releases. Borrower shall have provided documentation satisfactory to Lender evidencing the complete release of Borrower from all personal
liability owing under any other lending agreement, indebtedness or similar obligation owing to any party other than Lender in each case for money borrowed except in connection with Permitted Indebtedness (defined below).

  

	 	7.21.	 Chatham Subordination. Chatham Credit Management III, LLC, as agent (“Chatham”) with respect to the Amended and Restated Credit
Agreement dated August 1, 2008 (as amended, restated or otherwise modified from time to time, the “Chatham Credit Agreement”) shall have delivered to Lender a subordination agreement in form and substance reasonably approved by Lender
and Chatham. For the purpose of determining compliance with the provisions of Section 10.6 below, the subordinated indebtedness to Chatham under the Chatham Credit Agreement shall be disregarded. 

8. INSURANCE. Borrower shall obtain and maintain during the time stated below the following insurance policies and comply
with the following obligations (those policies and obligations, collectively, the “Required Insurance”). 
  

	 	8.1.	 Special Perils Insurance. Borrower shall obtain and maintain at all times property insurance against all risks of loss to the Property
customarily covered by “All Risk” or “Special Perils Form” policies as available in the insurance market (the “Special Perils Insurance”). Any Special Perils Insurance policy shall contain a coinsurance waiver and
replacement cost value endorsement without reduction for depreciation. Special Perils Insurance shall cover at least the following perils: 

  

	 	8.1.1.	 Building collapse, fire, flood, impact of vehicles and aircraft, lightning, malicious mischief, mudslide, subsidence, vandalism, water damage, and
windstorm; and 

  

	 	8.1.2.	 Such other insurable perils as, under good insurance practices, other commercial property owners from time to time insure against for property and
buildings similar to the Property in height, location, nature, type of construction, and use; and 

  

	 	8.1.3.	 The additional expense of demolition and increased cost of construction including increased cost from any changes in laws on restoration (which may
be subject to a sub-limit for demolition and increased cost of construction of up to $10,000,000); and 

  

	 	8.1.4.	 At least one hundred percent (100%) of the replacement value of all buildings and improvements now or hereafter located on the Property (which
may be subject to a “margin clause” of up to 115% limiting coverage for each item (building, personal property, etc.) of the value reported on the statement of value as provided by Borrower to the insurer); and

  
 10 

	 	8.1.5.	 All tenant improvements and betterments that any of the leases on the Property require Borrower to insure (the “Insured Leasehold
Property”). 

  

	 	8.2.	 Flood Insurance. If any buildings or improvements located on the Property are located in an area designated as “flood prone” or a
“special flood hazard area” under the regulations for the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973, 42 U.S.C. §4001 et seq., Borrower shall obtain and maintain at all times at least the
maximum coverage for the Property available under the federal flood insurance plan which may be subject to a “flood blanket” sublimit of up to (i) $25,000,000 with respect to Trace Regional Hospital and (ii) $10,000,000 with
respect to other locations. 

  

	 	8.3.	 Boiler and Machinery Insurance. Borrower shall obtain and maintain at all times comprehensive boiler and machinery insurance covering all
mechanical and electrical equipment against physical damage, rent loss, extra expense, and expediting expense on the Property and the Insured Leasehold Property (the “Boiler and Machinery Insurance”). The Boiler and Machinery Insurance
shall be on a replacement cost value basis, and, for each accident, shall cover at least the greater of: (a) Fifteen percent (15%) of full replacement cost of the buildings and improvements now or hereafter located on the Property; or
(b) $500,000.00. 

  

	 	8.4.	 Builder’s Risk Insurance. Borrower shall obtain and maintain during construction of the MOB builder’s risk insurance for the full
completed insurable value of the MOB written on a “completed value” Form (100 percent non-reporting) or its equivalent and including an endorsement granting permission to occupy (the “Builder’s Risk Insurance”).
Builder’s Risk Insurance shall cover: 

  

	 	8.4.1.	 The same perils that Special Perils Insurance must cover with whatever limits and coverage extensions Lender requires, unless Borrower’s
Special Perils Insurance already includes that coverage; and 

  

	 	8.4.2.	 Loss of materials, equipment, machinery, and supplies whether on-site, in transit, or stored offsite, or of any temporary structure, hoist,
sidewalk, retaining wall, or underground property; and 

  

	 	8.4.3.	 Soft costs, plans, specifications, blueprints, and models to the extent of $850,000.00; and 

 

	 	8.4.4.	 Demolition and increased cost of construction, including increased costs arising from changes in laws at the time of restoration and coverage for
operation of building laws, all subject to a sublimit satisfactory to Lender; and 

  

	 	8.4.5.	 Business interruption (delayed opening) on an actual loss sustained basis and otherwise in compliance with Business Interruption Insurance
requirements. 

  
 11 

	 	8.5.	 Business Interruption Insurance. As an extension to Special Perils Insurance, Flood Insurance, and Boiler and Machinery Insurance, Borrower
shall obtain and maintain business interruption insurance on an “actual loss sustained” basis (“Business Interruption Insurance”). Borrower shall obtain and maintain Business Interruption Insurance equal to at least
$10,000,000.00. If a Default shall have occurred and then be continuing, after receipt of any Business Interruption Insurance proceeds, Lender will be entitled to apply any such proceeds to indebtedness then owing by Borrower to Lender under this
Loan Agreement or the Working Capital Loan Agreement and within three (3) Business Days therewith will deposit any excess proceeds into Borrower’s Operating Account. For purposes of this Loan Agreement, “Business Day” means any
day other than (i) a Saturday or Sunday or (ii) a day on which federally chartered banking institutions are not required to be open. 

  

	 	8.6.	 Liability Insurance. 

  

	 	8.6.1.	 Borrower shall obtain and maintain the following insurance for personal injury, bodily injury, death, accident, and property damages (collectively,
the “Liability Insurance”); 

  

	 	(a)	 Public liability insurance, including commercial general liability insurance; 

 

	 	(b)	 Owned (if any), hired, and non-owned automobile liability insurance; and 

 

	 	(c)	 Umbrella liability insurance. 

  

	 	8.6.2.	 Liability Insurance shall provide coverage of at least one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000.00) in
annual aggregate. If any Liability Insurance also covers other location(s) with a shared aggregate limit, the minimum Liability Insurance shall be increased by two million dollars ($2,000,000.00). 

 

	 	8.6.3.	 Liability Insurance shall include coverage for liability arising from premises and operations, elevators, escalators, independent contractors,
contractual liability (including liability assumed under any contracts and leases), and products and completed operations. Borrower will use commercially reasonable efforts to cause all Liability Insurance to name Lender as an “Additional
Insured” by endorsement. 

  

	 	8.7.	 Statutory Employees’ Insurance. Borrower shall obtain and maintain workers’ compensation and disability insurance as required by
law (“Statutory Employees’ Insurance”). 

  
 12 

	 	8.8.	 Fidelity Bonds. Borrower shall obtain fidelity bonds or employee dishonesty coverage for each employee of Borrower who has or will have
access to any of Borrower’s funds satisfactory to Lender. 

  

	 	8.9.	 Medical Malpractice Insurance. Borrower shall obtain and maintain or cause to be maintained medical malpractice insurance for each medical
professional employed by Borrower and Borrower shall use commercially reasonable efforts to require medical malpractice insurance to be maintained by each medical professional not employed by it working on the Property. 

 

	 	8.10.	 Documentation. Borrower shall provide to Lender the following documentation: 

 

	 	8.10.1.	 For Special Perils Insurance, Flood Insurance, and Boiler and Machinery Insurance, and Business Interruption Insurance (collectively, “Property
Insurance”), Borrower shall cause Lender to be named as “Lender Loss Payee” or “Mortgagee” on a standard noncontributory mortgagee endorsement (or its equivalent) naming Lender or its designee as the party to receive
insurance proceeds. 

  

	 	8.10.2.	 Borrower shall provide such additional evidence of Lender’s interest under any Required Insurance as Lender shall reasonably require from time
to time, including the following (the “Evidence of Insurance”): 

  

	 	(a)	 An ACORD 28 certificate of insurance for all Property Insurance and Builder’s Risk Insurance; and 

 

	 	(b)	 A certificate of insurance evidencing Borrower’s Liability Insurance; and to the extent Borrower can cause the following by commercially
reasonable efforts, such certificate will evidence Lender as an additional insured and otherwise reasonably evidence compliance with the Liability Insurance requirements of the Loan Documents. 

 

	 	8.10.3.	 Borrower shall deliver to Lender, promptly upon issuance and in all events within ten (10) days of Borrower’s receipt of the applicable
policy, copies of the insurance policies for all Required Insurance, and will use commercially reasonable efforts to obtain a representation by the carrier or its authorized representative that such copy is true and correct. Prior to any policy
expiration, Borrower shall deliver evidence of renewal in compliance with the Loan Documents. 

  

	 	8.11.	 Policy Requirements. Borrower shall obtain all Required Insurance from domestic carrier(s) authorized to do business in the State of
Mississippi and reasonably satisfactory to Lender with: (a) A claims paying ability of not less than “A” (or the equivalent) by S&P and one other rating agency satisfactory to Lender; and (b) “A:X” or better
financial strength rating by AM Best. 

  
 13 

	 	 
A change in carrier’s rating under clause (a) or clause (b) shall not constitute a Default so long as Borrower undertakes commercially reasonable efforts to obtain substitute
coverage from a carrier rated under clause (a) or clause (b) as promptly as is commercially practicable, taking into account the remaining policy periods and the cost of such substitute coverage. 

 

	 	8.12.	 Blanket Coverage. Borrower may provide any Required Insurance under a blanket policy or policies covering the Property and other property and
assets, provided that: 

  

	 	8.12.1.	 The blanket policy otherwise meets all requirements for Required Insurance, and, except in the case of Liability Insurance, specifies how much
coverage, and which sublimits, apply exclusively to the Property; and 

  

	 	8.12.2.	 The amount allocated to the Property equals or exceeds the Required Insurance. 

 

	 	8.13.	 Protection of Lender’s Interest. 

  

	 	8.13.1.	 Borrower shall cause its insurance carrier to agree: 

 

	 	(a)	 to provide Lender 30 days written notice (10 days prior written notice for nonpayment of premium) prior to any cancellation, termination or
nonrenewal of the required insurance; 

  

	 	(b)	 to allow Lender to pay premiums to continue the policy upon notice of cancellation for nonpayment. 

 

	 	8.13.2.	 Every Property Insurance policy shall by its terms remain valid and insure Lender’s interest regardless of any: 

 

	 	(a)	 Named insured’s act, failure to act, negligence, or violation of warranties, declarations, or conditions; 

 

	 	(b)	 Occupancy of use of the Property for purposes more hazardous than those permitted; or 

 

	 	(c)	 Exercise of any Lender’s remedies. 

 If Lender reasonably deems itself insecure, on Lender’s request, Borrower will be required to make monthly deposits for insurance premiums equal to one-twelfth (1/12) of the annual charges as
estimated by Lender to accumulate with Lender sufficient funds to pay the insurance premiums thirty (30) days prior to their due date, such deposits to be held by Lender without interest. 

  
 14 

	 	8.14.	 Lender’s Rights; No Liability. 

  

	 	8.14.1.	 Borrower irrevocably authorizes Lender, at any time, to communicate directly with Borrower’s insurance carrier(s), broker(s), and tenant(s)
about any Required Insurance. 

  

	 	8.14.2.	 Any determination or request that Lender makes about any Required Insurance shall impose no obligation or liability on Lender. Borrower shall not
rely on any such determination or request (or its absence) as an implied or express representation about the adequacy of Borrower’s insurance. Borrower acknowledges that any such determination or request would be made solely for Lender’s
own benefit and not for Borrower. Borrower retains sole responsibility for the adequacy and prudence of its insurance program. 

  

	 	8.14.3.	 If at any time Lender has not received satisfactory written evidence that Borrower maintains and has paid for all Required Insurance, then without
limiting Lender’s remedies, Lender may (but shall have absolutely no obligation to) force place any Required Insurance or take such other actions as Lender shall deem appropriate to protect its interests. Prior to force placing insurance,
Lender shall give notice to the Borrower. Lender’s costs of doing so shall constitute loans to Borrower, all of which Borrower agrees will be secured by the Loan Documents. 

9. ACCOUNT COLLECTIONS. Pursuant to the Account Collections Agreement, Borrower will instruct all of Borrower’s
account debtors that (a) the point of remittance for payments remitted by any non-electronic means shall be [Borrower to designate address]; (b) the point of remittance for electronic payments remitted by non-Medicare account debtors shall
be the Operating Account; and (c) the point of remittance for all electronically transmitted payments on accounts and accounts receivable of Borrower payable from any state or the federal government or any subdivision or agency thereof,
including but not limited to Medicare and Medicaid payments (the “Medicare Electronic Payments”) shall be the Medicare Account. Borrower will not, without the prior written consent of Lender, revoke or alter the instructions until such
time as all of the indebtedness owing by Borrower to Lender has been paid in full. Without limiting the foregoing, any payments received by Borrower other than as set forth above will be deposited or transferred within five (5) Business Days
into the Operating Account. Payments received by Lender will be processed in accordance with the terms and conditions of the Account Collections Agreement. Borrower authorizes and directs Lender to sweep all funds from the Medicare Account to the
Operating Account on a daily basis, and in the absence of a Default, such funds in the Operating Account may be used by Borrower, all in accordance with the terms of the Account Collections Agreement. Lender agrees that Lender will not have a right
of set off with respect to the Medicare Account. 
 10. COVENANTS. Until payment in full of the Mortgage Note and
all renewals and modifications thereof, and performance of all obligations owing to Lender under this Loan Agreement and the instruments executed pursuant hereto, unless Lender shall otherwise consent in writing, Borrower covenants and agrees as
follows: 

  
 15 

	 	10.1.	 Performance of Obligations. Borrower will promptly and punctually perform all of the obligations hereunder and under the Loan Documents, and
under all other instruments executed or delivered pursuant thereto. 

  

	 	10.2.	 Information. Borrower will promptly furnish to Lender all reasonably requested information concerning the Property, the progress of the
construction of the MOB and, the financial status of Borrower and updated budgets and disbursement schedules relating to the MOB. For each fiscal quarter, Borrower will provide Lender with a quarterly financial statement of Borrower (signed by an
officer of Borrower charged with such responsibility as having been prepared in accordance with GAAP) within forty-five (45) days after the end of the fiscal quarter. For each fiscal year, Borrower will provide Lender with an annual financial
statement of Borrower within one hundred five (105) days after the close of the fiscal year, certified by an officer charged with such responsibility as having been prepared in accordance with GAAP. If the date on which quarterly or annual
financial statements would be due is not a Business Day, the date shall be extended to the next Business Day. The annual financial statements may be unaudited if Borrower is included within the consolidating statements of SunLink’s audited
annual financial statement. Borrower will provide Lender with such other financial reports as may be reasonably required by Lender or USDA. All financial statements will consist of at least a balance sheet, income statement and statement of cash
flow. Financial reports which are not financial statements shall be prepared in such form as are customarily utilized by management, including, if applicable, in accordance with GAAP or in such other form as may be reasonably required by Lender or
USDA. 

  

	 	10.3.	 Guarantor Financial Statements. For each fiscal quarter, Borrower will cause SunLink and Healthcare to provide Lender with unaudited
quarterly financial statements within forty-five (45) days after the end of the fiscal quarter. For each fiscal year, Borrower will cause SunLink and Healthcare to provide Lender with audited annual financial statements within one hundred five
(105) days after the end of the fiscal year. If the date on which quarterly or annual SunLink or Healthcare financial statements would be due is not a Business Day, the date shall be extended to the next Business Day. Healthcare’s annual
financial statements may be unaudited if Healthcare is included within the consolidating statements of SunLink’s audited annual financial statements. All such financial statements will consist of at least a balance sheet, income statement and
statement of cash flows. SunLink’s financial statements will also include a statement of shareholders equity. All financial statements will be certified by an officer charged with such responsibility as having been prepared in accordance with
GAAP. Borrower will cause SunLink and Healthcare to provide Lender with such other financial reports of SunLink and Healthcare as reasonably may be required by Lender 

  
 16 

	 	 
or USDA. With respect to financial reports of SunLink or Healthcare that are not financial statements, such reports shall be prepared in such form as are customarily utilized by management,
including, if applicable, in accordance with GAAP or in such other form as may be reasonably required by Lender or USDA. As to SunLink, SunLink’s quarterly report on Form 10-Q and annual report on Form 10-K as required to be filed with the
United States Securities and Exchange Commission shall be satisfactory as to form for SunLink Financial Statements and the filing thereof with the SEC via the EDGAR system shall constitute the provision thereof to Lender.

  

	 	10.4.	 Tax Returns. Borrower will cause to be provided to Lender and, as required, USDA, copies of annual filed federal tax returns for Borrower,
SunLink and Healthcare (or any consolidated return with respect to one or more of them) for each year on or before the Submission Deadline. “Submission Deadline” is defined as the date which is fifteen (15) days after the Filing
Deadline. “Filing Deadline” is defined as the deadline for the filing of such tax returns established by the Internal Revenue Code (the “IRC”) for Borrower (or SunLink so long as Borrower is part of a SunLink consolidated group)
for the immediately preceding calendar year. If Borrower (or SunLink so long as Borrower is part of a SunLink consolidated group) (i) timely files an application for an extension of the Filing Deadline with the Internal Revenue Service
(“IRS”); (ii) timely pays any estimated tax liability and satisfies any other requirements established by the IRC in order to qualify for an extension of the Filing Deadline; and (iii) provides Lender with a copy of such filed
application for an extension of the Filing Deadline, evidence of the payment of any estimated tax liability, and documentation satisfactory to Lender evidencing compliance with any other requirements of the IRC on or before the Submission Deadline,
Borrower (or SunLink so long as Borrower is part of a SunLink consolidated group) will thereafter provide Lender with a copy of the filed tax return on or before the date which is fifteen (15) days after the extended Filing Deadline. Borrower
hereby represents, warrants, covenants and affirms to Lender that all tax returns now or hereafter provided by Borrower, SunLink and Healthcare to Lender are and will be true and correct copies of the original tax returns filed with the IRS. The
delivery by Borrower, SunLink and Healthcare of each tax return to Lender shall constitute a reaffirmation that such tax return is a true and correct copy of the original tax return filed with the IRS. 

 

	 	10.5.	 Accounts Receivable Reports. Commencing on July 20, 2012 and on the 20th day of each month thereafter, so long as Borrower has a security interest in the Receivables, Borrower will provide
Lender with a monthly accounts receivable report for Borrower for the immediately preceding calendar month. 

  
 17 

	 	10.6.	 Financial Covenants. 

  

	 	10.6.1.	 Debt Service Coverage Ratio. Borrower will maintain a Debt Service Coverage Ratio of at least 2.85 to 1.00 during the term of the Mortgage
Note and all renewals and modifications thereof. The ratio will be tested quarterly commencing with the fiscal quarter ending September 30, 2012 and subsequently as of the last day of every third month thereafter. “Debt Service Coverage
Ratio” means (i) Borrower’s net earnings, plus interest expense, plus depreciation expense, plus amortization expense, plus income tax expense, less EHR Payments, all for the immediately preceding one (1) fiscal quarter, divided
by (ii) Borrower’s scheduled principal payments on term debt, plus scheduled capital lease payments for the succeeding one (1) fiscal quarter plus interest expense for the immediately preceding one (1) fiscal quarter. The number
of fiscal quarters used in each component of the ratio shall increase by one (1) for each subsequent testing period, up to a maximum of four (4) fiscal quarters, at which time the Debt Service Coverage Ratio shall thereafter be tested on a
four quarter basis. 

  

	 	10.6.2.	 Fixed Charge Coverage Ratio. Borrower will maintain a Fixed Charge Coverage Ratio of at least 1.25 to 1.00 during the term of the Mortgage
Note and all renewals and modifications thereof. The ratio will be tested quarterly commencing with the fiscal quarter ending September 30, 2012 and subsequently as of the last day of every third month thereafter. The term “Fixed Charge
Coverage Ratio” means (i) Borrower’s net earnings, plus interest expense, plus depreciation expense, plus amortization expense, plus income tax expense, less EHR Payments, all for the immediately preceding one (1) fiscal quarter,
divided by (ii) Borrower’s scheduled principal payments on term debt, scheduled capital lease payments for the succeeding one (1) fiscal quarter, plus interest expense, plus distributions to Healthcare and Net Intercompany Funding
(excluding distributions and intercompany funding from EHR Payments), all for the preceding one (1) fiscal quarter. The number of fiscal quarters used in each component of the ratio shall increase by one (1) for each subsequent testing
period, up to a maximum of four (4) fiscal quarters at which time the Fixed Charge Coverage Ratio shall thereafter be tested on a four fiscal quarter basis. “Net Intercompany Funding” means (x) the change in receivables from
Affiliates during the test period less (y) the change in payables to Affiliates (excluding changes in Ordinary Affiliate Indebtedness) during the test period. 

 

	 	10.6.3.	 Liquidity. “Days Cash on Hand” means (i) Borrower’s unrestricted cash assets reported on Borrower’s balance sheet
plus the balance available to be advanced to Borrower under the Working Capital Note as of the test date divided by (ii) Borrower’s operating expenses, excluding depreciation and bad debt expense, for the immediately preceding four
(4) quarters divided by 365. Liquidity will be tested quarterly commencing with the fiscal quarter ending September 30, 2012 and subsequently as of the last day of every third month thereafter. For the test dates listed below, Borrower
must have a minimum Days Cash on Hand as indicated below: 

  
 18 

			
	 Test Dates
	  	Minimum Days Cash
On Hand
	 9/30/12
	  	10
	 12/31/12
	  	15
	 3/31/13 and thereafter
	  	20

  

	 	10.6.4.	 Funded Debt to EBITDA Ratio. “Funded Debt to EBITDA Ratio” means (i) the aggregate outstanding balances of all capital leases
and all interest-bearing and non-interest-bearing notes payable, as of the test date divided by (ii) Borrower’s net earnings, plus interest expense, plus depreciation expense, plus amortization expense, plus income tax expense, less EHR
Payments, all for the immediately preceding four (4) quarters,. The ratio will be tested quarterly commencing with the fiscal quarter ending September 30, 2012 and subsequently as of the last day of every third month thereafter. For the
test dates listed below, the Funded Debt to EBITDA Ratio shall not exceed the maximum indicated: 

  

			
	 Test Dates
	  	Maximum Funded
Debt to EBITDA
Ratio
	 9/30/12 – 3/31/17
	  	3.5 to 1
	 6/30/17 – 3/31/22
	  	3.25 to 1
	 6/30/22 and thereafter
	  	3.0 to 1

  

	 	10.7.	 Financial Ratios Compliance Certificate. Borrower will provide Lender with a Compliance Certificate in the form attached hereto as Schedule
“10.7” (a “Financial Ratios Compliance Certificate”) together with all other documentation as requested by Lender commencing November 15, 2012 and on the fifteenth
(15th) day of every third month thereafter reflecting
Borrower’s computation of the Debt Service Coverage Ratio, the Fixed Charge Coverage Ratio, the number of Days Cash on Hand, and the Funded Debt to EBITDA Ratio (the “Financial Covenants”) for the immediately preceding applicable
periods. 

  

	 	10.8.	 Litigation. Borrower will promptly furnish to Lender written notice of any litigation: in which Borrower is involved which may reasonably be
expected to materially adversely affect (i) the ability of Borrower to perform its obligations under the Loan Documents or (ii) the Property or which relates to construction of the MOB. 

 

	 	10.9.	 Construction Standards. Borrower will construct the MOB in compliance with the Plans and Specifications approved by Lender, and in compliance
with applicable ordinances, building codes, zoning regulations and other governmental requirements, including but not limited to the 

  
 19 

	 	 
Americans with Disabilities Act, and free from encroachment upon building lines, easements and property lines. The MOB will be designed utilizing accepted architectural and engineering practices
and will conform in all material respects to applicable federal, state and local codes and requirements. If applicable, Borrower will require the architect to certify that the Property complies with the seismic requirements of Executive Order 12699.

  

	 	10.10.	 No Liens. Borrower shall not create, assume or suffer to exist any mortgage, deed of trust, pledge, lien, charge, encumbrance, or security
interest on any of the Property or any of Borrower’s Personal Property, excluding only encumbrances in favor of Lender and Permitted Encumbrances. 

 

	 	10.11.	 Use of Loan Proceeds. Borrower shall not permit any funds advanced to Borrower under this Loan Agreement to be used for any purpose other
than those purposes described in Section 1 hereof and those itemized matters disclosed in the Construction Budget. 

  

	 	10.12.	 Estoppel Certificates. On request by Lender, either verbally or in writing, Borrower shall furnish promptly a written statement or affidavit,
in such form as shall be satisfactory to Lender, stating the unpaid balance of the Mortgage Note and that there are no known offsets or defenses against full payment of the Mortgage Note, or if there are such offsets and defenses, specifying the
same. 

  

	 	10.13.	 Payment of Taxes. All taxes, assessments and governmental charges or levies imposed on Borrower or on Borrower’s assets, income or
profits will be paid prior to the date on which penalties attach thereto unless being contested in good faith and by appropriate procedures. If Lender reasonably deems itself insecure, on Lender’s request, Borrower will be required to make
monthly deposits for real estate taxes, assessments and similar charges equal to one-twelfth (1/12) of the annual charges estimated by Lender or accumulate authorized funds with Lender to pay such impositions thirty (30) days prior to
their due dates, such deposits to be held by Lender in a non-interest bearing account. 

  

	 	10.14.	 Books and Records. Borrower will keep and maintain adequate and proper books and records of accounts in regard to Borrower’s hospital,
nursing home, medical office and related businesses located on the Property, which books and records shall be sufficient in all material respects to allow the preparation of the Financial Statements in accordance with GAAP.

  

	 	10.15.	 Lender’s Access. Borrower shall permit any person designated by the Lender, including but not limited to Lender’s Inspector, to, in
the absence of a Default, upon 48 hours prior written notice (which may be given by e-mail), and during normal business hours (i) visit and inspect any of the properties, books and financial records of Borrower, (ii) enter upon the
Property, including the MOB during and after construction, including to inspect the construction progress of the MOB and all materials to be used in the construction of 

  
 20 

	 	 
the MOB and to examine the current Plans and Specifications; (iii) examine and to make copies of the books of accounts and other financial records of Borrower, and (iv) discuss the
affairs, finances and accounts of Borrower with, and to be advised as to the same by, its officers. Such inspections may occur no more often than once per fiscal quarter so long as no Default exists, provided, however, that during construction of
the MOB, Lender’s Inspector may conduct such inspections with respect to construction of the MOB at such times and intervals and with such notice as Lender or Lender’s Inspector reasonably deems appropriate. Lender (or its designee) may
conduct audits, at Lender’s cost and expense, of Borrower’s books of account, records or other papers relating to the collateral no more frequently than once each quarter unless a Default exists. Each inspection, visit, audit, examination,
or reproduction of books and records or extracts thereof shall be subject to and conducted in accordance with applicable law, including all healthcare rules and regulations, including but not limited to the Health Insurance Portability and
Accountability Act (“HIPAA”) and confidentiality of patient information. Without limiting the foregoing, the aforementioned limitations on the frequency of and payments of costs and expenses associated with visits, inspections and/or
audits and any notice requirements shall cease to be applicable when any Default exists and shall not constitute a limitation on or a waiver of the rights of the USDA under applicable law. 

 

	 	10.16.	 Post Completion Survey. Immediately after completion of the construction of the MOB thereon, and if required by the Title Insurer in order
for the Title Insurer to issue the title insurance contemplated by this Loan Agreement, Borrower shall furnish to Lender, in form and substance acceptable to Lender, a survey of the Property showing the location of the MOB and all easements on and
appurtenant to the Property in addition to those items shown in any survey required under Section 7. 

  

	 	10.17.	 No Merger. Borrower will not merge into or with or consolidate with any corporation, partnership, limited liability company, or other legal
entity other than a merger or consolidation (i) as to which Lender shall have been given prior written notice, (ii) in which an Affiliate of SunLink is merged into or with or consolidated with Borrower where Borrower is the survivor and
immediately thereafter and after giving effect thereto Borrower is in compliance with Section 10.6, and (iii) no Default shall have occurred and then be continuing. For purposes of this Loan Agreement, “Affiliate” with respect to
Borrower means (i) SunLink, Healthcare and any entity controlled directly or indirectly by SunLink or Healthcare; (ii) any entity controlled directly or indirectly by Borrower; (iii) any entity that directly, or indirectly through one
or more intermediaries, subsequently controls Borrower (a “Controlling Person”); or (iv) any entity which is controlled by or is under common control with a Controlling Person. As used herein, the term “control” of an entity
means the possession, directly or indirectly, of the power: (A) to vote 50% or more of the voting securities of such entity (on a fully diluted basis) having ordinary power to vote in the election of the governing body of such entity or
(B) to direct or cause the direction of the management or policies of an entity, whether through the ownership of voting securities, by contract, or otherwise. 

  
 21 

	 	10.18.	 No Sale. Borrower will not sell, lease or convey all or any portion of the Property, or all or any portion of Borrower’s Personal
Property, without the advance written consent of the Bank and, if required by applicable law, USDA (such consent not to be unreasonably withheld or delayed); provided, however, that no advance written consent shall be necessary if no Default then
exists or if such sale, lease or conveyance consists of (i) the sale of inventory in the ordinary course of business, (ii) the transfer or sale of equipment in connection with the replacement of such equipment with new equipment of a
similar type and value, or (iii) leases made in the ordinary course of business, including but not limited to leases of the MOB or portions thereof; it being expressly anticipated that Borrower may in the future lease certain portions of the
improvements situated on the Property including the MOB to third parties, in which instance Borrower shall provide copies of such leases to Lender. 

  

	 	10.19.	 Business Restrictions. Borrower will not engage in any business other than the ownership and operation of hospital, nursing home, clinic and
medical offices located on the Property and the provision of services related thereto and activities ancillary thereto. 

  

	 	10.20.	 Subcontractors. Borrower agrees to furnish or cause to be furnished to Lender a list of all material subcontractors and suppliers who will
provide labor or materials related to the construction of the MOB, together with the contact information for all such material subcontractors and suppliers. 

 

	 	10.21.	 Other Information. Borrower agrees to furnish to Lender such other information concerning the business activities of Borrower, the Property
and Borrower’s Personal Property as Lender might reasonably request. 

  

	 	10.22.	 Inspections. Subject to applicable law, including all healthcare rules and regulations, including but not limited to HIPAA and
confidentiality of patient information, Borrower will provide Lender with the results of all inspections of the Property or hospital or nursing home operations, conducted by any local, state or federal regulatory, licensing or safety agency or
entity. Such results will be provided to Lender within ten (10) days after the end of each calendar quarter. 

  

	 	10.23.	 Contingent Liabilities. Except with respect to Permitted Contingent Liabilities as set forth in Schedule “10.23” hereto
(“Permitted Contingent Liabilities”), Borrower will not assume, guarantee, endorse or otherwise become contingently liable for the obligation of any other person, firm or corporation. 

  
 22 

	 	10.24.	 Other Agreements. Borrower will not enter into any agreement or do any act which reasonably would be expected to cause Borrower to be unable
to comply with the terms of the Loan Documents. 

  

	 	10.25.	 Additional Documents. Borrower agrees to execute and deliver any documents which are necessary in the reasonable judgment of Lender to
obtain, maintain and perfect the liens and security interests intended to be created by the Loan Documents or, at Lender’s expense, to enable Lender to comply with any federal or state law otherwise applicable to Lender.

  

	 	10.26.	 Other Indebtedness. Except for the indebtedness identified in Schedule “10.26A” hereto (the “Permitted Indebtedness”),
Borrower will not incur any other indebtedness for money borrowed, capital lease obligations or obligations for the deferred purchase of property to any party other than Lender, except in the ordinary course of Borrower’s business, without the
prior written consent of Lender and USDA. Except for indebtedness identified on Schedule “10.26B” hereto (“Ordinary Affiliate Indebtedness”), indebtedness or liabilities to affiliates of Borrower, including charges of insurance,
accounting and other shared costs, shall not be considered to be in the ordinary course of Borrower’s business. So long as no Default has occurred and is continuing, Borrower may also make intercompany periodic cash management transfers to and
from Affiliates if such transfers are properly accounted for in determining distributions and Net Intercompany Funding for the purposes of Section 10.6 above. 

 

	 	10.27.	 Bank Accounts. So long as any indebtedness is owing by Borrower to Lender, Borrower will maintain with Lender all of Borrower’s bank
accounts, including without limitation the Operating Account, the Medicare Account, the USDA Fee Account and the Construction Escrow Account; provided, however, Borrower may maintain (i) a local bank account(s) in Houston, Mississippi into
which checks, cash payments and negotiable instruments may be deposited which will be swept weekly into one of Borrower’s bank accounts with Lender and (ii) the Medicare Account may be maintained at Borrower’s current bank until
authorization to change such account to Lender is obtained from Medicare. 

  

	 	10.28.	 Management Fees. Borrower shall pay no fees for management or similar services to any party, including but not limited to SunLink,
Healthcare, or any other affiliate, parent or subsidiary of Borrower except for management fees set forth on Schedule “10.28” hereto (“Permitted Affiliate Management Fees”). After the occurrence and during the continuance of a
Default, Borrower will not pay any Permitted Affiliate Management Fees provided that this section shall not prohibit Borrower from paying Ordinary Affiliate Indebtedness. 

 

	 	10.29.	 Intercompany Loans; Dividends. Borrower will not make any distributions, loans or advances of any kind to any party or make or declare any
dividend during the term of the Mortgage Note and all renewals and modifications thereof except that Borrower may: (i) make 

  
 23 

	 	 
intercompany loans to SunLink and/or Healthcare so long as after making any such loan and giving effect thereto Borrower is otherwise in compliance with Section 10.6 above; (ii) declare
and pay cash dividends if: (x) at the date of declaration no Default shall have occurred and be continuing and the net amount of dividends declared and made for the period from July 1, 2012 and ending on the computation date in question
shall not exceed eighty percent (80%) of the net income of Borrower for the period from July 1, 2012 to such computation date (minus the case of a deficit, the net deficit of Borrower for such period); (y) Borrower shall have had
positive net income after taxes for the fiscal year preceding the year in which any such dividend is proposed to be declared or paid; and (z) after giving effect to the declaration and payment of any such dividend, Borrower shall be in
compliance with Section 10.6 above; (iii) pay or make distributions for Permitted Affiliate Management Fees; (iv) pay or make distributions for Ordinary Affiliate Indebtedness; and (v) pay or make distributions for Permitted
Contingent Liabilities. 

  

	 	10.30.	 Equal Employment Opportunity. All construction contracts relating to the Property will comply with Executive Order 11246 entitled “Equal
Employment Opportunity” as amended and as supplemented by applicable Department of Labor regulations, debarment requirements of 7 CFR part 3017, and the Copeland Anti-Kickback Act (18 U.S.C. § 874). 

 

	 	10.31.	 USDA Annual Fee Escrow. Commencing on January 20, 2013 and on January 20th of each year thereafter, Borrower will pay Lender the annual USDA guarantee fee in the amount of 0.25% of the portion
of the outstanding principal balance of the Mortgage Note guaranteed by the USDA as of December 31st of the immediately preceding year (the “Annual USDA Fee”) to be deposited in the USDA Fee Account subject to the Security Agreement, which annual fee will be paid to the USDA on or before
January 31 of each year. If Lender reasonably deems itself insecure, Borrower will make monthly deposits in the USDA Fee Account on the 20th day of every month in amounts sufficient to accumulate the entire Annual USDA Fee in the USDA Fee Account on or before
January 20th of each year.

  

	 	10.32.	 Environmental Laws. Borrower will observe and comply in all material respects with applicable laws relating to health, safety, pollution,
hazardous materials or other environmental matters. Borrower will give Lender prompt written notice of any violation as to any environmental matter by Borrower and of the commencement of any judicial or administrative proceeding relating to health,
safety or environmental matters (a) in which an adverse determination or result would reasonably be expected to result in the revocation of or have a material adverse effect on any operating permits, air emission permits, water discharge
permits, hazardous waste permits or other permits held by Borrower which are material to the operations of Borrower, or (b) which will or threatens to impose a material liability on Borrower to any person or which will require a material
expenditure by Borrower to cure any alleged problem or violation. 

  
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	 	10.33.	 Environmental Indemnification. Borrower, Healthcare and SunLink shall indemnify Lender against potential loss from environmental
contamination of the Property in accordance with an Environmental Indemnification Agreement in form and substance approved by Lender (the “Environmental Indemnity”). 

 

	 	10.34.	 Building Laws Indemnification. Borrower, Healthcare and SunLink shall indemnify Lender against violation of certain building laws and
regulations in accordance with a Building Laws Indemnification Agreement in form and substance approved by Lender (the “Building Laws Indemnity”). 

 

	 	10.35.	 SNDAs. Borrower shall use commercially reasonable efforts to cause each tenant prior to the Effective Date who has leased any space in the
Property and shall cause each tenant who leases any space in the Property after the Effective Date, in each case, to execute and deliver in favor of Lender, a Subordination, Non-Disturbance and Attornment Agreement and Estoppel Certificate in form
and substance reasonably satisfactory to Lender (the “SNDAs”). 

  

	 	10.36.	 Maintenance and Covenant against Waste; MEP Inspection. Borrower at all times shall (a) keep the Property in good order and repair;
(b) promptly repair, restore, replace or rebuild any part of the Property which may be damaged or destroyed by ordinary wear and tear or by any casualty whatsoever or which may be affected by any condemnation proceedings or exercises of eminent
domain; and (c) promptly notify the Lender of any damage to the Property in excess of Twenty-Five Thousand Dollars ($25,000.00). Borrower will not unreasonably defer maintenance in connection with any mechanical, electrical, plumbing, HVAC, or
other system the failure of which would have a material adverse affect on the Borrower’s ability to conduct Borrower’s business on the Property. Borrower will not, without the prior written consent of Lender, commit or suffer any material
waste of the Property and will not commit or suffer any demolition, removal or material alteration of any of the buildings or improvements considered together with the fixtures on the Property without the written consent of Lender, which consent
will not be unreasonably refused, conditioned, or delayed. 

  

	 	10.37.	 USDA Covenants. Borrower agrees to promptly perform and comply with all of the conditions and covenants contained in the Conditional
Commitment, including but not limited to each of the following: 

  

	 	10.37.1.	 Capital Expenditures. Commencing with the fiscal year beginning July 1, 2013 and exclusive of the $850,000.00 funded from the
Construction Escrow Account, Borrower will not make capital expenditures in any fiscal year in excess of an aggregate amount of $250,000.00 per year without the consent of Lender, which consent shall not be unreasonably refused, conditioned or
delayed. 

  
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	 	10.37.2.	 Debt to Tangible Net Worth Ratio. Commencing on June 30, 2012, and tested as of the last day of every third month thereafter, Borrower
will maintain a Debt to Tangible Net Worth Ratio of no more than 9.00 to 1.00 during the term of the Mortgage Note and all renewals and modifications thereof. “Debt to Tangible Net Worth Ratio” will mean the ratio of
(i) Borrower’s total liabilities divided by (ii) Borrower’s tangible net worth, all as determined in accordance with GAAP. 

  

	 	10.37.3.	 Current Ratio. Commencing September 30, 2012 and tested as of the last day of every third month thereafter, Borrower will maintain a
Current Ratio of at least 1.00 to 1.00 during the term of the Mortgage Note and all renewals and modifications thereof. “Current Ratio” means the current assets of Borrower divided by the current liabilities of Borrower computed in
accordance with GAAP. 

  

	 	10.37.4.	 Cash. Borrower will at all times maintain a minimum of $250,000.00 in cash on hand inclusive of the amounts deposited under all escrows under
this Loan Agreement and minus the amount of any undrawn commitment under the Working Capital Loan Agreement. 

  

	 	10.37.5.	 Retained Earnings. Borrower will maintain retained earnings as verified by year-end financial statements of not less than $4,000,000.00 so
long as the Mortgage Note shall be outstanding or until the Lender and the USDA shall agree to a lesser amount. 

 11. ADMINISTRATION OF CONSTRUCTION ESCROW ACCOUNT. After satisfaction of the conditions in Section 7, Lender shall advance $850,000.00 of the Loan Commitment to the Borrower which shall
be funded into the Construction Escrow Account from which Borrower shall be entitled to make draws, subject to the following: 
  

	 	11.1.	 Purpose. The amounts to be drawn shall be used for the sole purposes as set forth in Section 1 hereof. 

 

	 	11.2.	 Conditions Subsequent to Escrow Funding. If the following conditions are not satisfied within 120 days of funding to the Construction Escrow
Account, the Borrower’s right to draw from the Construction Escrow Account shall be deemed terminated in accordance with Section 11.7 below: 

 

	 	11.2.1.	 Inspector. Agreements among Lender, Lender’s Inspector (defined below), Borrower, and Borrower’s contractor shall have been
executed and delivered to Lender. 

  

	 	11.2.2.	 Soil Testing. A soil test report, the results of which shall be satisfactory to Lender from Borrower’s architect or engineer stating
that the foundations and structural members of the MOB have been adequately designed considering soil conditions at the Property shall have been delivered to Lender and approved by Lender and Lender’s Inspector. 

  
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	 	11.2.3.	 Initial Project Review. Lender’s Inspector shall have performed an Initial Project Review for construction of the MOB and Borrower shall
have satisfied all requirements reasonably made by Lender’s Inspector as a result of such review. 

  

	 	11.2.4.	 Plans and Specifications. Complete copies of the final plans and specifications relating to the MOB initialed by Borrower and Borrower’s
Architect (the “Plans and Specifications”) shall have been delivered to and approved by Lender, Lender’s Inspector and USDA. The Plans and Specifications shall not be changed without the prior written consent of Lender and USDA,
unless such changes do not result in an increase in the Construction Budget or the guaranteed maximum price set forth in the Construction Contract. 

  

	 	11.2.5.	 Construction Budget. The Construction Budget must have been delivered to and approved by Lender, Lender’s Inspector and USDA (the
“Construction Budget”). 

  

	 	11.2.6.	 Construction Contract; Bonds. A copy of Borrower’s executed construction contract, which is in a fixed price amount not greater than
that reflected on the Construction Budget, for the construction of the MOB with a general contractor satisfactory to Lender (the “Construction Contract”) shall have been delivered to Lender and shall have been approved by Lender,
Lender’s Inspector and USDA, and Borrower shall have executed and delivered to Lender the Construction Contract Assignment. Borrower shall have also delivered to Lender written evidence satisfactory to Lender that Borrower has obtained a
payment and performance bond covering the Construction Contract in form and substance satisfactory to Lender. 

  

	 	11.2.7.	 Architect’s Contract. A copy of Borrower’s executed architectural contract (the “Architectural Agreement”), which is in a
fixed price amount not greater than that reflected on the Construction Budget, relating to the MOB, shall have been delivered to Lender and shall have been approved by Lender, Lender’s Inspector and USDA, and Borrower shall have executed and
delivered to Lender the Assignment of Architectural Agreement. 

  

	 	11.2.8.	 Building Permit. Borrower shall have obtained a building permit for the construction of the MOB (the “Building Permit”).

  

	 	11.2.9.	 Documents. Lender shall have received the Assignment of Construction Contract, the Assignment of Architectural Agreement, and the Assignment
of Plans. 

  
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	 	11.3.	 Requests for Draws. For each draw under the Construction Escrow Account, Borrower shall deliver to Lender, a draw request for construction
costs in accordance with the Construction Budget, in form reasonably satisfactory to Lender (the “Draw Request”), and stating the amount of disbursement requested, at least ten (10) days before the requested date of disbursement. Each
Draw Request shall be approved and signed by Borrower and Lender’s Inspector and shall be accompanied by billing statements, vouchers and invoices as required by Lender or Lender’s Inspector. Lender will release funds from the Construction
Escrow Account for the actual costs incurred for construction of the MOB within the estimates set forth in the Construction Budget. Each Draw Request will expressly warrant that the work for which the advance is requested has been performed in all
material respects in accordance with the Plans and Specifications and is for actual costs incurred for the construction of the MOB within the estimates set forth in the Construction Budget. Each Draw Request shall constitute an affirmation made by
Borrower that Borrower is not in breach of its obligations under this Agreement and that no Default, or any event that with the passage of time would be a Default, has occurred and is continuing. Each Draw Request shall constitute an affirmation
that Borrower’s portion of all previously incurred construction costs have been paid in all material respects. Each Draw Request is subject further to the following conditions: 

 

	 	11.3.1.	 each of the conditions in Section 11.2 shall have been satisfied; 

 

	 	11.3.2.	 proof, satisfactory to Lender, that all invoices for labor and materials have been paid, except those contained in the current Draw Request;

  

	 	11.3.3.	 a list of every material subcontractor who provided labor and/or materials relating to the current Draw Request; 

 

	 	11.3.4.	 lien waivers from the general contractor and each of the subcontractors contained in the list provided to Lender referenced above in
Section 11.3.2; 

  

	 	11.3.5.	 lien waivers and/or lien releases from payees under previous Draw Requests if not previously submitted; 

 

	 	11.3.6.	 any written approval required from the USDA for Lender to fund the current Draw Request; 

 

	 	11.3.7.	 a report signed by Borrower’s Architect, and by Lender’s Inspector, which shall specify the estimated percentage of completion of the MOB,
together with detailed comments on the specific work performed since the date of the last report rendered to Lender, and which will certify that all work previously performed in developing, constructing and equipping the MOB has been completed in
all material respects in accordance with the Plans and Specifications; 

  

	 	11.3.8.	 an endorsement to Lender’s mortgagee’s title insurance policy, extending the effective date of the policy to the date of the endorsement,
showing no liens of record or additional encumbrances not acceptable to Lender, and increasing the effective amount of the coverage to the total amount outstanding under the Mortgage Note; 

  
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	 	11.3.9.	 a foundation survey shall have been delivered within a reasonable time after completion of the foundation, showing all construction to be within the
property lines and disclosing no encroachments or violations of setback or other restrictions; 

  

	 	11.3.10.	 verification that the actual costs in the aggregate of construction of the MOB do not exceed the aggregate budgeted costs on an itemized basis in
any material respect as shown in the Construction Budget, and such other itemization and information with respect to such costs as may be requested by Lender; provided that Borrower may amend the items in the Construction Budget if (a) Borrower
gives Lender written notice thereof, (b) the total amount of the Construction Budget is not increased, and (c) the total amount of the Construction Contract is not increased, unless such increases have been previously approved by Lender,
Lender’s Inspector, and USDA in writing; 

  

	 	11.3.11.	 a schedule, reasonably satisfactory to Lender, of the estimated amount and time of disbursements of the cash advances to be made hereunder;

  

	 	11.3.12.	 evidence, reasonably satisfactory to Lender, that Borrower has sufficient financial resources to complete the construction and equipping of the MOB
to any extent by which the costs shall exceed the amount of the Mortgage Note; 

  

	 	11.3.13.	 if requested by Lender, proof that all materials and equipment constituting the MOB building or a fixture and any other fixtures incorporated in the
MOB have been purchased so that absolute ownership is vested in Borrower; and 

  

	 	11.3.14.	 All of the above information shall be obtained and submitted to Lender at Borrower’s expense. 

11.4. Inspection. Lender or USDA may, at Lender’s or USDA’s option, cause the Property to be inspected by an Inspector
designated by Lender (the “Lender’s Inspector”), at Borrower’s expense, before funding any Draw Request for a reasonable time prior to funding such Draw Request, and Lender shall not be required to fund any Draw Request until
such examination has been made. Any such inspection shall not be unreasonably withheld, conditioned, or delayed. Borrower agrees to pay monthly billings of Lender’s Inspector for inspection services. Notwithstanding (a) Borrower’s
payment of monthly billings to Lender’s Inspector for inspection services, and/or (b) any prior written or verbal statements to the contrary, Borrower acknowledges and agrees that (i) the services provided by Lender’s Inspector
are solely for the benefit of Lender in connection with Lender’s administration of the loan contemplated hereby; and (ii) Lender’s Inspector shall owe no duty, contractual or otherwise, to Borrower in connection with the services
provided by Lender’s Inspector to Lender. 

  
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 11.5. Disbursements. The Construction Escrow Account shall be drawn only for payment
of the approved costs of development of the building site and construction and equipping of the MOB and other costs incidental thereto and approved herein, or, at the discretion of Lender, such draw may be made by delivering checks to approved
payees whose invoices are entitled to be paid from the proceeds of the Construction Escrow Account. Notwithstanding the foregoing disbursement procedure, in the event of a continuing Default hereunder or under the terms of any of the Loan Documents
executed pursuant hereto, Lender may, at its discretion, make all disbursements to a title company escrow account, and such title company will draw checks on such account for payment of the items approved by Lender. Any expense incurred because of
the disbursement through a controlled title company escrow account shall be paid by Borrower. 
 11.6. Retainage. An
amount equal to 10% of that portion of each requested disbursement which is payable to Borrower’s contractor or any subcontractor for work performed on construction of the MOB or materials delivered to the building site, shall be retained by
Lender (herein called the “Retainage”); provided, however, Lender shall withhold Retainage only to the extent Borrower has withheld retainage or is required to withhold retainage under the Construction Contract. The Retainage shall be
disbursed by Lender to Borrower upon the expiration of thirty (30) days after the completion of the MOB in accordance with the Plans and Specifications, provided: 
  

	 	11.6.1.	 a Draw Request shall have been submitted with respect to the Retainage; 

 

	 	11.6.2.	 all governmental requirements shall have been satisfied, and a certificate of occupancy and other certificates evidencing completion of the MOB
shall have been issued, if appropriate; 

  

	 	11.6.3.	 final endorsements to Lender’s title insurance policy shall have been issued without reflecting any liens or encumbrances as exceptions to
coverage, and which provides affirmative coverage against liens; 

  

	 	11.6.4.	 there shall be no Default under this Loan Agreement or any of the Loan Documents which shall have occurred and be continuing and all other
conditions enumerated in this Loan Agreement shall have been satisfied in all material respects. 

 11.7.
Termination of Drawing Rights. Lender shall not be obligated to fund any Draw Requests if: (i) any of the Loan Documents is not valid and in full force and effect; (ii) a Default shall have occurred and then be continuing for thirty
(30) days under the terms of this Loan Agreement or any of the Loan Documents; (iii) Borrower notifies Lender that Borrower elects not to proceed with construction of the MOB; or (iv) material issues identified in the initial project
review by Lender’s inspector are not addressed to the good faith and reasonable satisfaction of Lender’s inspector. Upon termination of drawing rights, Lender shall be entitled to offset the balance of the Construction Escrow Account and
apply it to the Mortgage Note. 

  
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 12. ANTI-MONEY LAUNDERING AND INTERNATIONAL TRADE CONTROLS. 

 

	 	12.1.	 Compliance with International Trade Control Laws and OFAC Regulations. Borrower represents, warrants and covenants to Lender that:

  

	 	12.1.1.	 Borrower is not now nor shall Borrower be at any time until after the Mortgage Note, and all renewals and modifications thereof, is fully repaid a
person with whom a U.S. person, including a financial institution, is prohibited from transacting business of the type contemplated by this Loan Agreement, whether such prohibition arises under U.S. law, regulation, executive orders or lists
published by the Office of Foreign Assets Control (“OFAC”) of the Department of the Treasury of the United States of America (including those executive orders and lists published by OFAC with respect to Specially Designated Nationals and
Blocked Persons) or otherwise; 

  

	 	12.1.2.	 None of Borrower, Healthcare, SunLink or any person after the Effective Date who owns a direct interest in Borrower or any person after the
Effective Date who controls any person who owns a direct or indirect interest in Borrower is now or shall be at any time until after the Mortgage Note, and all renewals and modifications thereof, is fully repaid a person with whom a U.S. person,
including a financial institution, is prohibited from transacting business of the type contemplated by this Loan Agreement, whether such prohibition arises under U.S. law, regulation, executive orders or lists published by the OFAC (including those
executive orders and lists published by OFAC with respect to Specially Designated Nationals and Blocked Persons) or otherwise. 

  

	 	12.2.	 Borrower’s Funds. Borrower represents, warrants and covenants to Lender that: 

 

	 	12.2.1.	 Borrower has taken, and shall continue to take until after the Mortgage Note, and all renewals and modifications thereof, is fully repaid, such
measures as are required by applicable law to verify that the funds invested in Borrower are derived (a) from transactions that do not violate U.S. law nor, to the extent such funds originate outside the United States, do not violate the
applicable laws of the jurisdiction in which they originated; and (b) from permissible sources under U.S. law and to the extent such funds originate outside the United States, under the laws of the jurisdiction in which they originated;

  
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	 	12.2.2.	 None of Borrower, Healthcare, SunLink, any person after the Effective Date who owns a direct interest in Borrower, or any person after the Effective
Date who controls any persons who owns a direct or indirect interest in Borrower, or, to Borrower’s knowledge, any person providing funds to Borrower (a) is under investigation by any governmental authority for, or has been charged with,
or convicted of, money laundering, drug trafficking, terrorist-related activities, any crimes which in the United States would be predicate crimes to money laundering, or any violation of any state or federal anti-money laundering laws; (b) has
been assessed civil or criminal penalties under any state or federal anti-money laundering laws; and (c) has had any of its/his/her funds seized or forfeited in any action under any state or federal anti-money laundering laws;

  

	 	12.2.3.	 Borrower shall make payments on the loan evidenced by the Loan Documents using funds invested in Borrower, donations and pledges, grants, operating
revenues or insurance proceeds unless otherwise agreed to by Lender; 

  

	 	12.2.4.	 As of the Effective Date and at all times during the term of the Mortgage Note and all renewals and modifications thereof, all operating revenues
are and will be derived from lawful business activities of Borrower or Borrower’s tenants or other permissible sources under U.S. law; and 

  

	 	12.2.5.	 On the Maturity Date, Borrower will take all necessary steps to verify that funds used to repay the Mortgage Note in full (whether in connection
with a refinancing, asset sale or otherwise) are from sources permissible under U.S. law and to the extent such funds originate outside the United States, permissible under the applicable laws of the jurisdiction in which they originated.

 13. DEFAULT. Each of the following shall constitute a default hereunder and under each of the Loan Documents
(“Default”): 
  

	 	13.1.	 Nonpayment of Notes. Failure to make payment when due of any interest on or principal of the Mortgage Note or the Working Capital Note, or
any renewals or modifications thereof and such failure shall continue for a period of three (3) Business Days or more after the date due; or 

  

	 	13.2.	 Working Capital Loan Agreement Default. The occurrence and continuance of any Default (as defined therein) under that certain Working Capital
Loan Agreement as defined therein of even date herewith signed by Borrower and Lender in connection with the Working Capital Note; or 

  
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	 	13.3.	 Chatham Credit Agreement Default. The occurrence of any “Event of Default” (as defined therein) under the Chatham Credit Agreement
which shall have occurred and then be continuing.; or 

  

	 	13.4.	 Other Nonpayment. Failure to make payment when due of any other amount payable under the terms of this Loan Agreement or any of the Loan
Documents within five (5) Business Days of the receipt of written demand therefor from Lender (unless the same or amount thereof is being contested in good faith by Borrower); or 

 

	 	13.5.	 Breach of Covenants. Breach by Borrower in the performance or observance of any covenant made under this Loan Agreement or any of the Loan
Documents, or under the terms of any other instrument delivered to Lender in connection with this Loan Agreement, provided that with respect to any such covenants which are non-monetary in nature, Borrower will have thirty (30) days following
receipt of written notice from Lender to Borrower to cure the breach of such covenant before such occurrence will constitute a Default hereunder; or 

  

	 	13.6.	 Creation of Liens. Excepting Permitted Encumbrances, the creation or enforcement of any lien, deed of trust, pledge, security interest,
encumbrances or other lien (including a lien of attachment, judgment or execution) securing a charge or obligation affecting any or all of the Property or all or any of Borrower’s Personal Property which continues more than thirty
(30) days following receipt of written notice from Lender; or 

  

	 	13.7.	 Change of Ownership. Except as permitted in Section 10.18, the assignment, sale, transfer, encumbrance or conveyance of all or any
portion of the Property not otherwise permitted by the Loan Documents without the prior written consent of Lender and USDA, or if the ownership of the Property becomes vested in a person or entity other than Borrower without the prior written
consent of Lender and USDA, or if there is a change in control of Borrower from Guarantor or any other wholly-owned subsidiary of SunLink which shall guarantee the obligations of Borrower under the Loan Agreement without Lender’s and
USDA’s prior written consent; or 

  

	 	13.8.	 Liquidation or Disposition of Assets. The liquidation or dissolution of Borrower or Borrower entering into any partnership, joint venture,
syndicate, pool, operating agreement, or other combination with respect to all of the operations of the Borrower’s hospital or nursing home whether in a single transaction or a series of related transactions or the assets or properties of
Borrower substantially as an entirety, or except in the ordinary course of business (including with respect to the disposition of used or obsolete Equipment), the conveyance, sale, assignment or lease of any material part of the assets or business
of Borrower, except in all such cases as otherwise provided by this Loan Agreement (including Sections 10.17 and 10.18), without the prior written consent of Lender and USDA; or 

  
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	 	13.9.	 Judgment. Entry by any court of final, non-appealable judgment (and the expiration of all appeals) against Borrower and not covered by
insurance in excess of $100,000.00, or an attachment of any property of Borrower which is not discharged to the reasonable satisfaction of Lender within sixty (60) days thereof; or 

 

	 	13.10.	 Casualty Loss; Condemnation. Substantial damage or destruction by casualty or taking by rights of eminent domain of all or any substantial
portion of the Property so as to materially and adversely affect Borrower’s ability to perform Borrower’s obligations hereunder; or 

  

	 	13.11.	 Variance from Plans and Specifications. Changes in the approved Plans and Specifications or any other changes in the construction of the MOB
by Borrower, without Lender’s and USDA’s prior written consent unless such changes do not exceed the amount of the Construction Budget or the guaranteed maximum price contained in the Construction Contract; or 

 

	 	13.12.	 Work Stoppage. The abandonment or cessation of the work on the MOB for a period of thirty (30) consecutive calendar days, unless such
cessation (but not such abandonment) shall have been the result of an act of God or other cause, which, with the exercise of due diligence, Borrower was unable to prevent or overcome; or 

 

	 	13.13.	 Bankruptcy. The occurrence of any of the following: (i) the institution of bankruptcy reorganization, liquidation or receivership
proceedings by or against Borrower, SunLink or Healthcare or any parent of Borrower or any controlled affiliate or subsidiary of Borrower which are not dismissed within sixty (60) days after the filing thereof, or (ii) the making of any
assignment for the benefit of creditors by or against Borrower, SunLink or Healthcare or any parent of Borrower or any controlled affiliate or subsidiary of Borrower, or (iii) if Borrower, SunLink or Healthcare or any parent of Borrower or any
controlled affiliate or subsidiary of Borrower becomes insolvent, or (iv) any admission by Borrower, SunLink or Healthcare or any parent of Borrower or any controlled affiliate or subsidiary of Borrower of its or their inability to pay debts as
such debts mature; or 

  

	 	13.14.	 Termination of Existence. Borrower ceases to be a validly existing Georgia corporation; or 

 

	 	13.15.	 Governmental Requirements. The issuance of any order, decree or judgment pursuant to any judicial or administrative proceeding declaring that
the Property, the MOB, the construction of the MOB, or the operation of the Property (including the MOB) is in material violation of any federal, state or local law, ordinance, rule or regulation which in any such case would materially adversely
affect Borrower’s business; or 

  
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	 	13.16.	 Representations. Any representation, warranty, statement, certificate, schedule or report made or furnished to Lender by Borrower proves to
be false or erroneous in any material respect at the time of the making thereof, and Borrower fails to take or cause to be taken corrective measures with respect to such representations or warranties satisfactory to Lender within thirty
(30) days after written notice by Lender, and such corrective measures are not completed to Lender’s satisfaction within sixty (60) days after such written notice is given; or 

 

	 	13.17.	 Loan Documents. Any of the Loan Documents cease to be valid, legally binding or enforceable which renders such documents inadequate for the
realization of the material benefits intended to be provided thereby; or 

  

	 	13.18.	 Revocation of Authorization. (i) The revocation by Borrower of any of the authorizations contained in the Account Collection Agreement
to sweep daily all funds contained in the Medicare Account into the Operating Account; or (ii) the revocation or modification of any authorization or instruction to any of Borrower’s account debtors in a manner inconsistent with the
Account Collection Agreement (Lender agrees that it must honor any such revocation by Borrower described in this Section 13.18 notwithstanding the fact that any such revocation constitutes a Default hereunder); or 

 

	 	13.19.	 Loss of Licenses. The suspension or termination of any of Borrower’s licenses or permits which are required by law and which suspension
or termination would materially adversely affect Borrower’s ability to operate Borrower’s hospital, nursing home, medical offices and related businesses on the Property substantially as presently conducted; or 

 

	 	13.20.	 Certificate of Completion. The failure of Borrower to obtain and provide Lender with a copy of a certificate of substantial completion of the
MOB from Borrower’s general contractor on or before March 31, 2013 except in the case of any delay resulting from any act of God, strike or labor disturbance, shortage of materials, change in law, regulation or governmental restriction or
other cause beyond the reasonable control of Borrower; or 

 14. REMEDIES. On the occurrence of
a Default, as defined in Section 13 of this Loan Agreement, Lender may, at its option: 
  

	 	14.1.	 Acceleration of Note. Terminate making advances under the Mortgage Note, and the Loan Documents, and declare the Mortgage Note or any
renewals or modifications thereof to be immediately due and payable whereupon the Mortgage Note or any renewals or modifications thereof shall become forthwith due and payable without presentment, demand, protest or notice of any kind, and Lender
shall be entitled to proceed simultaneously or selectively and successively to enforce its rights under the Mortgage Note, the Deed of Trust, this Loan Agreement, and any or all of the Loan Documents, and any of the instruments executed pursuant to
the terms thereof, or in connection therewith to evidence or secure the obligations of Borrower, and all renewals and modifications thereof. Nothing contained herein shall limit Lender’s rights and remedies available under applicable law.

  
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	 	14.2.	 Selective Enforcement. In the event Lender shall elect to selectively and successively enforce its rights under any of the Loan Documents,
such action shall not be deemed a waiver or discharge of any other lien, encumbrance or security instrument securing payment of the Mortgage Note until such time as Lender shall have been paid in full all sums advanced under the Mortgage Note. The
foreclosure of any lien provided pursuant to the terms of the Loan Documents without the simultaneous foreclosure of all such liens shall not merge the liens granted which are not foreclosed with any interest that Lender might obtain as a result of
such selective and successive foreclosure. 

  

	 	14.3.	 Completion by Lender. Subject to applicable law, Lender shall have the right, but shall not be obligated, to take possession of the Property
and proceed to complete the construction of the MOB according to the Plans and Specifications. In connection therewith, Borrower hereby appoints Lender as Borrower’s true and lawful attorney-in-fact with the full power of substitution (which
appointment is coupled with an interest and irrevocable) to complete, or cause to be completed, the MOB in Borrower’s name and shall empower Lender as follows: to use any funds of Borrower, including any balance which may be held in escrow and
any funds which remain unadvanced under the Mortgage Note for the purpose of completing the MOB in the manner called for in the Plans and Specifications; to make changes and corrections in the Plans and Specifications which shall be deemed necessary
or desirable by Lender; to employ such contractors, subcontractors, agents, architects and inspectors as shall be required; to pay, settle or compromise all existing bills and claims which are or may be liens against the Property or any part thereof
or may be necessary or desirable for completion of the work or the clearance of title; to execute all applications and certificates in Borrower’s name which may be required by any contract relating to construction of the MOB; and to do any and
every act with respect to construction of the MOB which Borrower may do in its own behalf. It is understood and agreed that this power of attorney shall be deemed to be a power coupled with an interest which cannot be revoked. Lender, as
Borrower’s attorney-in-fact, shall also have the power to prosecute and defend all actions or proceedings in connection with the construction of the MOB on the Property and to take such action and require such performance as is deemed
necessary. At the time Lender takes possession of the Property, all proceeds to complete construction of the MOB, and all materials on or near the Property or improvements shall become the property of Lender to be used in said completion. The cost
of said completion shall become an obligation payable to Lender by Borrower. Lender is authorized to add all costs necessary to complete construction of the MOB to Borrower’s indebtedness owing to Lender, holding the instruments executed in
connection with this loan as security for the payment thereof, irrespective of whether the aggregate amount of such costs and the sums previously advanced hereunder exceed the Loan Commitment. 

  
 36 

	 	14.4.	 Cumulative Remedies. The rights and remedies of Lender provided by the Loan Documents are cumulative and no right or remedy will be exclusive
of any other or of any other right or remedy which Lender might otherwise have by virtue of the occurrence of a Default and the exercise of any right or remedy by Lender will not impair Lender’s standing to exercise any other right or remedy.

  

	 	14.5.	 Deposits; Setoff. Regardless of the adequacy of Borrower’s Personal Property, any deposits or other sums credited by or due from Lender
to Borrower under this Loan Agreement or the Working Capital Loan Agreement, will at all times constitute collateral security for all obligations of Borrower to Lender under this Loan Agreement or the Working Capital Loan Agreement, and, except with
respect to funds in the Medicare Account, which Lender agrees are not subject to set off, may be set off against any and all liabilities, direct or indirect, absolute or contingent, now existing or hereafter arising, of Borrower to Lender under this
Loan Agreement or the Working Capital Loan Agreement. The rights granted by this paragraph will be in addition to the rights of Lender under any statutory bankers’ lien. 

 

	 	14.6.	 Appointment of Receiver. Lender will be entitled to obtain a court appointed receiver for the Property without notice to Borrower, SunLink or
Healthcare, which notice is hereby waived. 

 15. MISCELLANEOUS. It is further agreed as
follows: 
  

	 	15.1.	 Origination. Contemporaneously with the execution, closing and delivery of the Loan Documents, Borrower will pay Lender a loan origination
fee equal to $47,375.00 and Borrower will pay Lender the USDA guarantee fee of $209,475.00 to be deposited in the USDA Fee Account subject to the Security Agreement, to be paid to the USDA. 

 

	 	15.2.	 Expenses. Whether or not advances under this Loan Agreement are actually made, Borrower agrees to pay all fees, expenses and charges in
respect to the loan contemplated by this Loan Agreement and the Loan Documents, including, without limiting the generality thereof, the following: 

  

	 	15.2.1.	 the reasonable fees and out of pocket expenses of legal counsel employed by Lender in connection with the negotiation and preparation of the Loan
Documents and the closing of this loan; 

  

	 	15.2.2.	 all expenses incidental to obtaining a first priority Mississippi Deed of Trust on the Property, abstracting costs, title examination fees, title
insurance premiums, mortgage taxes, documentary stamp taxes, and closing costs; 

  
 37 

	 	15.2.3.	 survey costs, appraisal costs and costs for environmental reports, soil reports, and structural design reports; 

 

	 	15.2.4.	 recording and filing fees and notary fees; 

  

	 	15.2.5.	 fees of Lender’s Inspector; 

  

	 	15.2.6.	 other reasonable fees and expenses involved in the closing of this loan; 

 

	 	15.2.7.	 In addition to the legal fees described at Section 15.2.1, all attorneys’ fees and expenses payable by Lender which are incidental to
(a) the enforcement or defense after the occurrence and during the continuance of a Default of any or all of the Loan Documents and any instrument executed pursuant thereto; (b) the negotiation and preparation of any renewals or
modifications to any of the Loan Documents requested by Borrower, SunLink or Healthcare; and (c) rendering any advice to Lender related to the Loan Documents, and any transactions contemplated thereby or related to the enforcement or defense
thereof after the occurrence and during the continuance of a Default; and 

  

	 	15.2.8.	 Borrower’s obligations for fees, costs, expenses and charges under this Loan Agreement shall be in addition to its obligation to pay the amount
of the non-refundable origination and guarantee fees described at Section 15.1 hereof. 

  

	 	15.3.	 Notices. Any notices or other communications required or permitted hereunder shall be sufficiently given if delivered personally, by next day
courier service or sent by confirming facsimile transmission or by registered or certified mail, postage prepaid, return receipt requested and addressed as listed below or to such other address as the party concerned may substitute by written notice
to the other. All notices shall be deemed received on the date of personal delivery or courier delivery, the date of confirmation of receipt of a facsimile transmission, or within three days (excluding Saturdays, Sundays and holidays recognized in
the United States) after being mailed: 

  

	 	To Borrower:	 Southern Health Corporation of Houston, Inc. 

	 	    	 900 Circle 75 Parkway 

	 	    	 Atlanta, GA 30339 

	 	    	 Attn: Mark Stockslager 

  

	 	With a copy to:	 Smith, Gambrell & Russell, LLP 

	 	    	 1230 Peachtree Street, NE 

	 	    	 Suite 3100, Promenade Two 

	 	    	 Atlanta, GA 30309 

	 	    	 Attn: Howard E. Turner, Esq. 

  
 38 

	 	To Lender:	 Stillwater National Bank and Trust Company 

	 	    	 6301 Waterford Boulevard, Suite 101 

	 	    	 Oklahoma City, Oklahoma 73118 

	 	    	 Attn: Chief Credit Officer 

  

	 	With a copy to:	 Bryan J. Wells and Jared D. Giddens 

	 	    	 Conner & Winters, LLP 

	 	    	 One Leadership Square 

	 	    	 211 N. Robinson, Suite 1700 

	 	    	 Oklahoma City, OK 73102 

	 	    	 Fax No.: (405) 232-2695 

  

	 	15.4.	 Amendment and Waiver. This Loan Agreement and the Loan Documents may not be amended or modified in any way, except by an instrument in
writing executed by all of the parties thereto; provided, however, Lender may, in writing: (i) extend the time for performance of any of the obligations of Borrower; (ii) waive any breach or Default by Borrower; and (iii) waive the
satisfaction of any condition that is precedent to the performance of Lender’s obligations under this Loan Agreement. In the event of a waiver of a breach or Default by Lender, such specific breach or Default shall be deemed to have been cured
and not continuing, but no such waiver shall extend to the reoccurrence of the same breach or Default or any subsequent or other breach or Default or impair any consequence of such subsequent or other breach of Default. 

 

	 	15.5.	 Non-Waiver; Cumulative Remedies. No failure on the part of Lender to exercise and no delay in exercising any right hereunder shall operate as
a waiver thereof, nor shall any single or partial exercise by Lender of any right hereunder preclude any other or further right of exercise thereof. The remedies herein provided are cumulative and not alternative. 

 

	 	15.6.	 Applicable Law. This Loan Agreement, all of the Loan Documents and all other documents executed pursuant thereto and in connection therewith
to evidence or secure the loans contemplated hereby shall be deemed to be a contract made under the laws of the State of Oklahoma, except the Deed of Trust and Assignment of Rents which shall be governed by Mississippi law respectively. Nothing in
this Loan Agreement shall be construed to constitute Lender as a joint venturer with Borrower or to constitute a partnership among any of such parties. 

 

	 	15.7.	 Descriptive Headings. The descriptive headings of the sections and paragraphs of this Loan Agreement are for convenience only and shall not
be used in the construction of the terms hereof. 

  

	 	15.8.	 Integrated Agreement. This Loan Agreement, all of the Loan Documents and the other loan documents executed pursuant hereto or in connection
herewith constitute the entire agreement between the parties hereto, and there are no agreements, understandings, warranties or representations between the parties other than those set forth in such documents. 

  
 39 

	 	15.9.	 Time of Essence. Time is of the essence of this Loan Agreement. 

 

	 	15.10.	 Binding Effect. This Loan Agreement shall be binding on and inure to the benefit of the parties hereto and their respective successors,
personal representatives, legal representatives and assigns. 

  

	 	15.11.	 Third Party Beneficiary. Nothing in this Loan Agreement, express or implied, is intended to confer on any person, other than the parties
hereto and their respective successors and assigns, any rights or remedies under or by reason of this Loan Agreement. 

  

	 	15.12.	 Right to Defend. Lender shall have the right, but not the obligation, at Borrower’s expense, to commence, to appear in or to defend any
action or proceeding (initiated by a third party against Borrower) excluding any insured medical malpractice suit or claim, purporting to affect the rights or duties of the parties hereunder and in connection therewith pay out of the funds of the
loan all necessary expenses, including fees of counsel, if Borrower fails to so commence, appear in or defend any such action or proceedings with counsel reasonably satisfactory to Lender. 

 

	 	15.13.	 Participation. Lender is authorized to sell participation interests in the loan evidenced by this Agreement to other financial institutions;
and Borrower agrees that subject to the terms of the agreements of participation, each holder of a participation interest will be entitled to rely on the terms of the loan documents executed in connection herewith as if such holder had been named as
an original party to the loan documents. Borrower hereby ratifies and authorizes the delivery by Lender either before or after closing of any and all financial and other information regarding Borrower, together with copies of the Loan Documents, to
any potential or actual participant. 

  

	 	15.14.	 Disclosure of Information; Confidentiality. Lender agrees to hold any confidential information that it may receive from the Borrower,
Guarantor or SunLink pursuant to this Loan Agreement in confidence, except for disclosure: (a) on a confidential basis to legal counsel, independent public accountants and other professional advisors of Lender; (b) to regulatory officials
having jurisdiction over Lender; (c) as required by applicable law or legal process (provided that, in the event Lender is so required to disclose such confidential information, Lender shall promptly notify Borrower, so that Borrower, Guarantor
or SunLink or any of them may seek a protective order or other appropriate remedy) or in connection with any legal proceeding between Lender and Borrower, Guarantor, SunLink or any of them; and (d) to another financial institution in connection
with a disposition or proposed disposition to that financial institution of all or part of Lender’s interests hereunder or a participation 

  
 40 

	 	 
interest in the Loan, provided that such disclosure is made subject to an appropriate confidentiality agreement on terms substantially similar to this Section. For purposes of the foregoing,
“confidential information” shall mean all information respecting the Borrower, Guarantor, SunLink, or any of them, other than (i) information previously filed by the Borrower, Guarantor or SunLink with any governmental authority and
available to the public, and (ii) information previously published in any public medium from a source other than, directly or indirectly, Lender. Use of information by counsel in enforcement proceedings after Default shall not constitute a
prohibited disclosure of information under this section. 

  

	 	15.15.	 Accuracy of Information. This Loan Agreement has been entered into by Lender based upon the information, data and representations furnished
by Borrower to Lender, and Lender’s obligation to close and fund the loan is subject to the continued accuracy of all matters submitted to Lender herewith. By acceptance hereof, Borrower warrants to Lender that all such information, data and
representations heretofore and hereafter furnished to Lender are true and correct in all material respects, and there is contained therein no untrue statement of a material fact and this warranty shall be true at the time the Loan is closed and
shall survive closing. There shall be no material change at the time the Mortgage Loan is closed of the income and expenses of the Property, the financial condition of Borrower and all other features of the transaction shall be in all material
respects as represented by Borrower to Lender. 

  

	 	15.16.	 Maximum Legal Rate of Interest. Notwithstanding any other provisions of this Loan Agreement or any of the Loan Documents to the contrary, the
total interest charges incurred by Borrower pursuant to the Mortgage Note shall not exceed the maximum legal rate of interest under Oklahoma law. If the holder of the Mortgage Note shall ever be entitled to receive, collect or apply, as interest on
the loans, any amount in excess of the maximum legal rate of interest permitted to be charged by applicable law, and, in the event any holder of the Mortgage Note ever receives, collects or applies, as interest, any such excess, such amount which
would be excessive interest shall be applied to the reduction of the unpaid principal balance of the Mortgage Note, and if the principal balance is paid in full, any remaining excess shall be forthwith paid to Borrower. In determining whether or not
the interest paid or payable under any specific contingency exceeds the highest lawful rate, Borrower and Lender shall, to the maximum extent permitted, under applicable law: (a) characterize any non-principal payment as an expense, fee or
premium rather than as interest; (b) exclude voluntary prepayments and the effects thereof; (c) “spread” the total amount of interest on the Mortgage Note throughout the entire term of the Mortgage Note so that the interest rate
is uniform throughout the entire term of the Mortgage Note. 

  

	 	15.17.	 No Responsibility of Lender. No acceptance or approval (if any) of the Plans and Specifications or any changes thereto by Lender or anyone
acting on Lender’s behalf, nor any acknowledgment by Lender or anyone acting on Lender’s behalf, that the MOB have been developed or 

  
 41 

	 	 
constructed in accordance with the Plans and Specifications, shall in any way be deemed an express or implied warranty or representation or approval by Lender or any one on behalf of Lender, that
such improvements: (a) are or will be structurally sound, (b) are in good or workmanlike condition, repair or state of maintenance, (c) have any particular use or purpose, or (d) have any particular value, and Borrower hereby
indemnifies and holds Lender harmless from any such claims that might be made by any party. Further, notwithstanding any term or provision of the Loan Documents, Lender shall not have any obligation or responsibility for the management, conduct or
operation of the business and affairs of Borrower. No provision hereof or of any of the other Loan Documents shall be construed or interpreted to create any relationship between Borrower and Lender other than that of debtor and creditor.

  

	 	15.18.	 No Leasing or Drilling. Borrower shall not, without the prior written consent of Lender, permit any drilling or exploration for or
extraction, removal or production of any mineral, natural element, compound or substance from the surface or subsurface of the Property regardless of the depth thereof or the method of mining or extraction thereof and agree to defend, indemnify,
save and hold Lender, its officers, agents, servants, employees, successors and assigns harmless from any and all claims, liabilities, losses or expenses which may be incurred by Lender, and any and all other expenses or losses, either direct or
consequential, which are attributable, or alleged in any way to be attributable, to the development and exploitation of mineral rights in, on or around the Property by Borrower or any other party. 

 

	 	15.19.	 Notice of Title Protection. Lender is obtaining its own title protection in this transaction, and Borrower should seek competent advice as to
whether Borrower should obtain any additional title protection to protect Borrower. 

  

	 	15.20.	 Jurisdiction and Venue. Borrower hereby submits to the jurisdiction of any state or federal court located in Oklahoma County, Oklahoma, or
Chickasaw County, Mississippi, as elected by Lender or required by applicable state law, in connection with any action or proceeding commenced for the collection, enforcement, or defense of this Loan Agreement, the Mortgage Note, the Deed of Trust,
or any of the other Loan Documents, and hereby waives all objections to venue or any objections based on the theory of non-convenient forum in connection therewith. 

 

	 	15.21.	 Counterparts. This Loan Agreement may be executed in two or more counterparts, each of which will be an original instrument, but all of which
taken together will constitute one agreement. 

  

	 	15.22.	 New Loan. The loan made by Lender to Borrower pursuant to the terms hereof and the execution of this Loan Agreement do not impose legal
restrictions that will prevent Borrower from complying with 7 USC Section 1983(3) with respect to any loan obligations held or insured by the USDA, except for 

  
 42 

	 	 
the prior written consent of Lender which consent will not be unreasonably withheld but which consent will be conditional on the satisfaction of all of Lender’s underwriting and credit
standards, and such other factors as are consistent with prudent banking practices. 

  

	 	15.23.	 USDA Consent. Borrower and Lender hereby acknowledge and agree that any change, modification and/or consent negotiated between Borrower and
Lender regarding any terms of this Loan Agreement will not be effective without the prior written consent of the USDA. 

  

	 	15.24.	 Defined Terms. Capitalized terms defined herein shall have the same meaning in the Loan Documents unless otherwise defined therein. Certain
defined terms are located in the Sections identified below: 

  

			
	Term	  	Section
	 Affiliate
	  	10.17
	 Assignment of Construction Contract
	  	4.5
	 Assignment of Plans
	  	4.7
	 Assignment of Rents
	  	4.2
	 Borrower
	  	1st Paragraph
	 Borrower Personal Property
	  	4.3
	 Building Laws Indemnity
	  	10.34
	 Building Permit
	  	11.2.8
	 Business Days
	  	8.5
	 Chatham
	  	7.21
	 Chatham Credit Agreement
	  	7.21
	 Conditional Commitment
	  	5.2
	 Construction Budget
	  	11.2.5
	 Construction Contract
	  	11.2.6
	 Construction Escrow Account
	  	4.3
	 Current Ratio
	  	10.37.3
	 Debt to Tangible Net Worth Ratio
	  	10.37.2
	 Deed of Trust
	  	4.1
	 Default
	  	11.3
	 Draw Request
	  	13
	 EHR Payments
	  	2.3.2
	 Environmental Indemnity
	  	10.33
	 Filing Deadline
	  	10.4
	 Financial Covenants
	  	10.7
	 Financial Ratios Compliance Certificate
	  	10.7
	 Funded Debt to EBITDA Ratio
	  	10.6.4
	 GAAP
	  	6.5
	 Guarantors
	  	5.1
	 HIPAA
	  	10.15
	 Historical Financial Statements
	  	6.5

  
 43 

			
	 Interest Rate
	  	2.2
	 IRC
	  	10.4
	 IRS
	  	10.4
	 Lender
	  	1st Paragraph
	 Lender’s Inspector
	  	11.4
	 Loan Agreement
	  	1st Paragraph
	 Loan Commitment
	  	1
	 Loan Documents
	  	7.1
	 Maturity Date
	  	2.4
	 MOB
	  	1
	 Net Intercompany Funding
	  	10.6.2
	 OFAC
	  	12.1.1
	 Ordinary Affiliate Indebtedness
	  	10.26
	 Permitted Contingent Liabilities
	  	10.23
	 Permitted Encumbrances
	  	6.4
	 Permitted Indebtedness
	  	10.26
	 Plans and Specifications
	  	11.2.4
	 Prepayment Premium
	  	2.3.3
	 Prime Rate
	  	2.2
	 Property
	  	1
	 Retainage
	  	11.6
	 SNB Security Agreement
	  	4.3
	 SNDAs
	  	10.35
	 Stock Certificates
	  	4.4
	 Stock Pledge Agreement
	  	4.4
	 Stock Power
	  	4.4
	 Submission Deadline
	  	10.4
	 SunLink
	  	Recitals
	 SunLink Guaranty
	  	5.1
	 Term Loan
	  	Recitals
	 Title Insurer
	  	7.5
	 USDA Guaranty
	  	Recitals
	 Working Capital Loan Agreement
	  	Recitals
	 Working Capital Note
	  	Recitals

  
 44 

 IN WITNESS WHEREOF, the parties have caused this instrument to be duly
executed as of the day and year first above written. 
  

			
	SOUTHERN HEALTH CORPORATION OF HOUSTON, INC., a Georgia corporation
		
	By:	 	 
		 	 MARK J. STOCKSLAGER, Assistant Treasurer

		 	
	
	(the “Borrower”)

  

			
	STILLWATER NATIONAL BANK AND TRUST COMPANY
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	(the “Lender”)

  
 45

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