Document:

Limited Consent and Modification of Loan Agreements

 Exhibit 10.1 
 LIMITED CONSENT AND MODIFICATION TO 
 LOAN DOCUMENTS 

THIS LIMITED CONSENT AND MODIFICATION TO LOAN DOCUMENTS (this “Modification Agreement”) is entered into
as of March 1, 2011 by and among SUNLINK HEALTH SYSTEMS, INC., a corporation organized under the laws of the State of Ohio, SUNLINK HEALTHCARE LLC, a limited liability company organized under the laws of the State of Georgia, DEXTER HOSPITAL,
LLC, a limited liability company organized under the laws of the State of Georgia, CLANTON HOSPITAL, LLC, a limited liability company organized under the laws of the State of Georgia (“Clanton”), SOUTHERN HEALTH CORPORATION OF
ELLIJAY, INC., a corporation organized under the laws of the State of Georgia, SOUTHERN HEALTH CORPORATION OF DAHLONEGA, INC., a corporation organized under the laws of the State of Georgia, SOUTHERN HEALTH CORPORATION OF HOUSTON, INC., a
corporation organized under the laws of the State of Georgia, HEALTHMONT OF GEORGIA, INC., a corporation organized under the laws of the State of Tennessee, HEALTHMONT, LLC, a limited liability company organized under the laws of the State of
Georgia, HEALTHMONT OF MISSOURI, LLC, a limited liability company organized under the laws of the State of Georgia, SUNLINK SERVICES, INC., a corporation organized under the laws of the State of Georgia, SUNLINK SCRIPTSRX, LLC (f/k/a Sunlink
Homecare Services, LLC), a limited liability company organized under the laws of the State of Georgia, CENTRAL ALABAMA MEDICAL ASSOCIATES, LLC, a limited liability company organized under the laws of the State of Georgia (“CAMA”),
DAHLONEGA CLINIC, LLC, a limited liability company organized under the laws of the State of Georgia, CARMICHAEL’S CASHWAY PHARMACY, INC., a corporation organized under the laws of Louisiana, CARMICHAEL’S NUTRITIONAL DISTRIBUTOR, INC., a
corporation organized under the laws of Louisiana, and BREATH OF LIFE HOME HEALTH EQUIPMENT, INC., a corporation organized under the laws of Louisiana (each individually, a “Borrower” and, collectively, the
“Borrowers”), the other persons designated as “Credit Parties” on the signature pages hereof, the financial institutions who are parties to this Modification Agreement as Lenders (the “Lenders”), and
CHATHAM CREDIT MANAGEMENT III, LLC, a Georgia limited liability company (in its individual capacity “Chatham”), as Agent. 
 RECITALS 
 WHEREAS, the Agent, Union Bank of California,
N.A., as the funding agent (the “Funding Agent”), the financial institutions that are party thereto as lenders, the Borrowers and the other Credit Parties are parties to that certain Amended and Restated Credit Agreement, dated as
of August 1, 2008 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; unless otherwise defined herein, capitalized terms used herein that are not otherwise
defined herein shall have the respective meanings assigned to such terms in the Credit Agreement); 
 WHEREAS,
the Borrowers have requested that the Agent and Required Lenders (i) consent to certain matters relating to CAMA and Clanton more fully described herein as the “Requested Consents” and (ii) agree to change certain terms of
certain of the Loan Documents, in each case, in accordance with the terms of this Modification Agreement; and 

WHEREAS, the Agent and Required Lenders are willing to provide the Requested Consents and agree to change certain terms
of certain of the Loan Documents, in each case, on the terms and subject to the conditions described herein. 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual agreements and covenants contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereto hereby agree as follows: 

 Section 1.      Limited
Consent. CAMA owns 83% of the membership interest of Clanton (the “CAMA Units”) and certain physicians (the “Physicians”) own the remaining 17% of the membership interest of Clanton (the “Physician
Units”). The Credit Parties have advised the Agent and the Lenders that Clanton and CAMA desire to enter into certain transactions with Carraway Medical Systems, LLC, a Wyoming limited liability company (“Purchaser”) and
James R. Cheek, an individual resident of the State of Alabama (“Guarantor”), as described in detail as follows (collectively, the “Transactions”): (a) Clanton will transfer substantially all of its assets
(other than the assets described on Exhibit A hereto (the “Excluded Assets”)) (such transferred assets, the “Transferred Assets”) pursuant to the Asset Transfer Agreement between Clanton and CAMA dated as of
March 1, 2011 provided to Agent (the “Intercompany Transfer Agreement”), in each case, subject to the continuing liens and security interests granted to the Agent; (b) CAMA will then lease all such Transferred Assets back
to Clanton for a term of six years pursuant to (i) a Lease Agreement between Clanton and CAMA dated as of March 1, 2011 provided to Agent with respect to the real property portion of the Transferred Assets (the “Facility
Lease”) and (ii) a Personal Property Lease Agreement between Clanton and CAMA dated as of March 1, 2011 provided to Agent with respect to the personal property portion of the Transferred Assets (the “Personal Property
Lease” and collectively with the Facility Lease, the “Leases”) and Guarantor will guarantee the obligations of Clanton under the Leases; (c) pursuant to the terms of the Membership Interest Purchase Agreement dated as
of March 1, 2011 provided to Agent (the “Membership Interest Purchase Agreement”), CAMA will sell the CAMA Units to Purchaser in exchange for a promissory note issued by Purchaser to CAMA in the amount of $1,000,000 (the
“Purchaser Note”) secured by the pledge of, among other things, the CAMA Units pursuant to a Pledge Agreement (the “Membership Pledge Agreement”), in each case, substantially in the forms attached to the Membership
Interest Purchase Agreement provided to Agent; and (d) Purchaser will purchase the Physician Units from the Physicians and the Physicians will receive a promissory note issued by Purchaser to each Physician secured by the Physician Units held
by each Physician. Upon the consummation of the Transactions, (i) Purchaser will own 100% of the issued and outstanding membership interest of Clanton and (ii) Clanton, as owned by Purchaser, will lease the assets from CAMA for its
operations. 
 Section 6.2 of the Credit Agreement prohibits the disposition of assets by any Credit Party
without the consent of Agent and Required Lenders except for certain dispositions specifically authorized by Section 6.2. Section 6.25 prohibits sale and leaseback transactions without the consent of Agent and Required Lenders. The Credit
Parties request that the Agent and the Required Lenders consent to the Transactions notwithstanding the terms of Sections 6.2 and 6.25 and agree, upon consummation of the Transactions, Clanton will cease to be a Borrower and Credit Party under the
Credit Agreement and the Liens granted by Clanton under the Loan Documents securing the Obligations be deemed released (such consents, collectively, the “Requested Consents”). Subject to the terms of this Limited Consent and
satisfaction of each of the conditions to the Effective Date set forth herein, the Agent and the Required Lenders hereby agree to the Requested Consents. 
 Accordingly, as of the Effective Date (as defined in Section 3 below), the Agent and the Required Lenders agree and acknowledge that (i) all security interests and other Liens granted by Clanton
to Agent in any Excluded Assets provided by Clanton as security for the Obligations shall be released and discharged without the necessity of any further action by Clanton, (ii) Clanton shall no longer be deemed to be bound by or obligated
under the Loan Documents to which Clanton was a party immediately prior to the Effective Date except for those provisions of the Loan Documents (as amended or otherwise modified by this Modification Agreement) that specifically survive termination
thereof and each of the terms of this Modification Agreement and the Modification and Assumption of Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Filing dated as of the date hereof and (iii) the Lien
granted by CAMA on the CAMA Units pursuant to the Pledge Agreement dated April 23, 2008 (the “SunLink Pledge”) shall be released and the certificate representing the CAMA Units shall be promptly returned to CAMA for transfer to
Purchaser. From and after the Effective Date, Agent agrees to 

 
promptly take all reasonable additional steps requested by Credit Parties as may be necessary to release the Liens granted to Agent by Clanton in the Excluded Assets as security for the
Obligations. Credit Parties agree to pay Agent for all out-of-pocket costs and expenses reasonably incurred by Agent in connection with the matters referred to in the previous sentence. Clanton and each Credit Party acknowledge that Agent’s
execution of and/or delivery of any documents releasing any such Lien or security interest as set forth herein is made without recourse, representation, warranty or other assurance of any kind by Agent as to Agent’s rights in any collateral
security for amounts owing under the Loan Documents, the condition or value of any Collateral, or any other matter. Effective upon the Effective Date, Clanton and each Credit Party confirms that the commitments of Agent and/or any Lender to make any
further loans or other financial accommodations under the Loan Documents to Clanton are terminated and Agent and Lenders shall not have any further obligation to make any loans or other financial accommodations to Clanton. Each Borrower (other than
Clanton) acknowledges and agrees that such Borrower is and shall remain jointly and severally liable for all Obligations of Clanton which existed prior to the Effective Date and that the releases regarding Clanton contemplated above shall not
operate to release or novate any of such Borrower’s Obligations under Section 8.18 of the Credit Agreement. Notwithstanding anything to the contrary contained herein or in any of such releases or other documents, the obligations and
liabilities of the Borrowers (other than Clanton) and the other Credit Parties (other than Clanton) to Agent and Lenders under or in respect of the Loan Documents shall continue in full force and effect in accordance with their terms and not be
affected by this Modification Agreement or any of the releases or other documents delivered in connection herewith. Without limiting the foregoing, the terms of the foregoing paragraph shall not operate to release any Liens granted to the Agent by
CAMA as contemplated by the terms of Section 3 and Schedule 5.16 of this Modification Agreement. 

Section 2.      Changes to Credit Agreement and Pledge Agreement.
Subject to the satisfaction of the applicable conditions to the Effective Date set forth in Section 3 herein, the Borrowers, the other Credit Parties, the Agent and the Required Lenders hereby agree as follows: 

(a)        The respective definitions of “Consolidated Net Income” and
“Prepayment Event” set forth in Section 1.1 of the Credit Agreement are hereby revised and restated in their entirety to read as follows: 
 ““Consolidated Net Income”:  For any period, the consolidated net after tax income of the Borrowers and their Subsidiaries determined in accordance with GAAP;
provided that the following items shall be excluded in computing Consolidated Net Income (without duplication): (i) the net income (or loss) of any Person which is not a Subsidiary of the Borrower, except to the extent of the amount of
any dividends or other distributions actually paid to the Borrowers or any of their Subsidiaries during such period, (ii) except for determinations expressly required to be made on a pro forma basis, the net income (or loss) of any Person
accrued prior to the date it becomes a Subsidiary or all or substantially all of the property or assets of such Person are acquired by a Subsidiary, (iii) the net income of any Subsidiary to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary of such net income is not at the time permitted by the operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation
applicable to such Subsidiary, (iv) all legal fees and legal expenses charged to expense by the Borrowers for the litigation between Piedmont Healthcare Inc. and Piedmont Mountainside Hospital Inc. (Piedmont) and SunLink Health Systems, Inc.
SunLink Healthcare LLC and Southern Health Corporation of Jasper, Inc. (SunLink) for breach of agreement in the asset sale 

 
agreement in June 2004 in which Piedmont purchased Mountainside Medical Center from SunLink; (v) all legal fees and legal expenses charged to expense by the Borrowers for the settlement of
the UK Obligations; (iv) any income recognized as a result of any reduction or adjustment in any allowances or reserves established by any Credit Party with respect to accounts receivable and (vii) the net income (or loss) of
Clanton.” 
 ““Prepayment Event”:  Means: 

(a)    any sale, transfer or other disposition (including pursuant to a sale and leaseback
transaction) of any property or asset of any Credit Party other than dispositions described in Section 6.2(a), Section 6.2(b) and Section 6.2(c); 

(b)    any casualty or other insured damage to, or any taking under power of eminent domain or by
condemnation or similar proceeding of, any property or asset of any Credit Party, but only to the extent that the Net Insurance/Condemnation Proceeds therefrom have not been applied, or committed pursuant to a written agreement (including any
purchase orders) to be applied, to repair, restore or replace such property or asset within 180 days after such event, or within such longer period as agreed to by the Agent with respect to the repair, restoration, or replacement of any real
property; 
 (c)    any receipt by any Credit Party of any indemnity payments under the
Carmichael’s Acquisition Agreement from any of the Sellers or under any purchase agreement relating to any Permitted Acquisition from any sellers thereof which exceed (A) $100,000 individually or (B) when added to all other such
indemnity payments received after the Original Closing Date, $500,000 in the aggregate (the “Indemnity Payment Deductibles”); provided, however, that (i) any indemnity payments that relate to the reimbursement of,
or payment by, any Credit Party of any out-of-pocket costs in connection with the Carmichael’s Acquisition or a Permitted Acquisition and (ii) any indemnity amounts that are offset against the principal amounts of any promissory notes
issued to any of the Sellers in connection with the Carmichael’s Acquisition or any of the sellers in connection with a Permitted Acquisition shall be excluded from the determination of the foregoing Indemnity Payment Deductibles; 

(d)  any issuance of (i) Equity Interest in any Credit Party (other than pursuant to stock options issued
in accordance with stock option plans or other benefit plans for management or employees of any Credit Party) or (ii) Indebtedness of any Credit Party and 

(e)  any receipt by any Credit Party of: 

 

	 	(i)	 all cash proceeds received in connection with the exercise of the options to acquire any property subject to the Lease Agreements between Clanton
and CAMA dated as of March 1, 2011 and the Personal Property Lease Agreement dated as of March 1, 2011 between Clanton and CAMA (collectively, the “Lease Agreements”; together with the guarantee of such Lease Agreements by
James R. Cheek and any related purchase and sale agreement which may be executed pursuant to such Lease 

	 	 
Agreements and as the same may be amended, restated or otherwise modified from time to time, collectively, the “Clanton Lease Documents”) (provided that cash proceeds from any
rent payments or other charges paid pursuant to the Lease Agreements which do not constitute purchase price for the exercise of the options shall not be included in the scope of cash proceeds subject to a Prepayment Event under this clause (e)(i))
and/or 

  

	 	(ii)	 the cash proceeds, if any, pursuant to the Membership Interest Purchase Agreement dated as of March 1, 2011 between CAMA, as seller, and
Carraway Medical Systems, LLC (“Carraway”), as buyer and the related promissory note dated as of March 1, 2011 issued in favor of CAMA by Carraway and guaranteed by James R. Cheek (as the same may be amended, restated or
otherwise modified from time to time, collectively, the “Clanton Purchase and Note Documents” and together with the Clanton Lease Documents, collectively, the “Clanton Transaction Documents”).”

 (b)        Section 1.1 of the Credit Agreement
is revised by adding the following new defined terms in proper alphabetical order: 

“CAMA”:   Central Alabama Medical Associates, LLC, a Georgia Limited liability company.

 “Clanton”: Clanton Hospital, LLC, a Georgia limited liability company. 

“Clanton Transaction Documents” shall have the meaning ascribed to such term in clause (e) of the
definition of “Prepayment Event” set forth in Section 1.1. 

(c)        Section 2.6(a) of the Credit Agreement is revised in its entirety
to read as follows: 
 “(a)      Mandatory Prepayments
for a Prepayment Event. If at any time a Prepayment Event occurs, the Borrowers shall immediately repay the Loans in the amount of (i) 100% of the net cash proceeds realized by a Prepayment Event described in clause (a), clause (b), clause
(c) or clause (e) of the definition of the term “Prepayment Event” and (ii) 50% of the net cash proceeds realized by a Prepayment Event described in clause (d) of the definition of the term “Prepayment Event”.
Any such prepayments shall be applied to the Loans in accordance with Section 2.6(e).” 

(d)        Section 5.17(a) of the Credit Agreement is revised in its
entirety to read as follows: 
 “(a)      On or prior to
December 31, 2010, Borrowers shall cause to be delivered to Agent (i) one or more written proposal letters from lenders participating in the Rural Development Advance program (the “RDA Program”) to provide one or
more Borrowers with not less than $11 million of funded loans under the RDA Program on terms and conditions reasonably satisfactory to the Required Lenders (the “RDA Loans”), (ii) one or more written proposal letters
from other third party lenders reasonably satisfactory to the 

 
Required Lenders to provide one or more Borrowers with not less than $11 million of funded loans on terms and conditions reasonably satisfactory to the Required Lenders (the “New
Loans”), or (iii) one or more fully executed letters of intent with bona fide third parties with respect to the disposition of certain assets of one or more of the Borrowers in one or a series of transactions at fair market value for
net cash proceeds to Borrowers of not less than $11 million in the aggregate on terms, conditions, and with parties reasonably satisfactory to the Required Lenders (the “Approved Sales”) (the foregoing alternate delivery
requirements due by December 31, 2010, the “December Delivery Covenant”). On or prior to April 15, 2011, the Borrowers shall cause the closing and funding of the RDA Loans, the New Loans or the Approved Sales to be
consummated on terms and conditions consistent with the proposal letters and/or letters of intent (as applicable) referenced above and on terms reasonably satisfactory to the Required Lenders with all proceeds thereof being concurrently applied to
permanently repay the Term Loan (which proceeds, net of all reasonable transaction costs, expenses and holdbacks, shall not be less than $10,500,000) (the foregoing closing and paydown requirements due by April 15, 2011, the “April
Paydown Covenant”). The Borrowers, Agent and Lenders agree that notwithstanding anything to the contrary contained in this Agreement (including, without limitation, the terms of Section 7.1 hereof), the sole consequence of any
failure by Borrowers to satisfy any of the undertakings set forth in this Section 5.17(a) shall be the Special Pricing Increases (as defined below) and that no Default or Event of Default shall be deemed to occur solely as a result of
any failure by the Borrowers to timely comply with the terms of this Section 5.17(a). As used herein, “Special Pricing Increases” shall mean (a) if Borrowers fail to satisfy the December Delivery Covenant on or prior to
December 31, 2010, the Applicable Revolving Margin and the Applicable Term Loan Margin shall each be automatically increased (i) by 100 basis points over the levels which would otherwise be applicable under this Agreement and the Waiver
Agreement for the period commencing January 1, 2011 through and including March 31, 2011 and (ii) by 200 basis points over the levels which would otherwise be applicable under this Agreement and the Waiver Agreement for all periods
from and after April 1, 2011 or (b) if Borrowers timely comply with the December Delivery Covenant by December 31, 2010 but fail to timely comply with the April Paydown Covenant on or prior to April 15, 2011, the Applicable
Revolving Margin and the Applicable Term Loan Margin shall each be automatically increased (i) by 100 basis points over the levels which would otherwise be applicable under this Agreement and the Waiver Agreement for the period commencing
April 15, 2011 through and including July 14, 2011 and (ii) by 200 basis points over the levels which would otherwise be applicable under this Agreement and the Waiver Agreement for all periods from and after July 15, 2011. For
avoidance of doubt, (i) the Special Pricing Increases shall be in addition to and not in lieu of the “Interest Rate Changes” referenced in Section 2 of the Waiver Agreement and (ii) if a Special Pricing Increase occurs as a
result of clause (a) of the definition thereof, no additional Special Pricing Increase shall occur under clause (b) of the definition thereof. 
 The Borrowers, Agent and Lenders acknowledge and agree that the inclusion of any language in this Section 5.17(a) which refers to any matter being “reasonably satisfactory” to the
Required Lenders shall be limited to determining whether Borrowers have satisfied their obligations under this Section 5.17(a). Without 

 
limiting any of the obligations of the Borrowers described in this Section 5.17(a), nothing contained in this Section 5.17(a) shall be deemed to modify or limit the sole
and absolute discretion of the Agent and Required Lenders to approve or withhold approval to any proposed incurrence of Indebtedness, incurrence of Liens, release or subordination of any Liens in any Collateral, and/or any sale or disposition of any
assets of any Credit Party which is not otherwise expressly permitted by the terms of this Agreement.” 

(e)        Section 6.2(d) of the Credit Agreement is hereby deleted in its
entirety. 
 (f)        Article VI of the Credit Agreement is hereby
revised by adding at the end thereof, the following new Section 6.27: 
 “Section 6.27 Clanton
Transaction Documents. No Credit Party shall amend, restate, terminate, release, waive or otherwise modify any of the Clanton Transaction Documents or the pledge agreement dated as of March 1, 2011 executed by Carraway in favor of CAMA in
any manner adverse to a Credit Party, the Agent or the Lenders without obtaining the prior written consent of the Required Lenders.” 
 (g)        Schedule 1.1(b) to the Credit Agreement is revised by deleting such Schedule 1.1(b) in its entirety and replacing the same with Schedule
1.1(b) attached hereto. 
 (h)        Schedule 4.28 to the
Credit Agreement is revised by deleting such Schedule 4.28 in its entirety and replacing the same with Schedule 4.28 attached hereto. 
 (i)        Schedule 5.16 to the Credit Agreement is revised by deleting such Schedule 5.16 in its entirety and replacing the same with
Schedule 5.16 attached hereto. 
 (j)        Section 2
of the Pledge Agreement is hereby revised by (i) revising subsection 2(c) thereof in its entirety to read as provided below and (ii) adding the following new subsection 2(d) at the end thereof: 

“2(c)    (i) The promissory note dated as of March 1, 2011 issued to Central Alabama
Medical Associates, LLC (“CAMA”) by Carraway Medical Systems, LLC, a Wyoming limited liability company (“Carraway”), and guaranteed by James R. Cheek, and (ii) all rights under the pledge agreement dated as of March 1,
2011 executed by Carraway in favor of CAMA and all membership interests pledged thereby, including without limitation, all membership interest certificates and related assignments executed in blank from time to time delivered to CAMA in connection
therewith, in each case, as amended, restated, replace or otherwise modified from time to time. 

2(d)    All proceeds of any and all of the foregoing (including proceeds that constitute property of
types described above).” 
 Section 3.      Conditions
Precedent.    The terms of Section 1 and 2 of this Modification Agreement shall become effective as of the date each of the following conditions are satisfied (the “Effective Date”): 

 

	 	(a)	 The Agent shall have received duly executed counterparts to this Modification

	 	 
Agreement from each of the Credit Parties, Clanton, the Agent and the Required Lenders; 

  

	 	(b)	 The Agent shall have received a copy of the duly executed transaction documents reflecting and governing the Transactions, including, without
limitation, the Intercompany Transfer Agreement, the Leases and the Membership Interest Purchase Agreement and concurrent with the Effective Date, the transactions contemplated thereby shall have been fully consummated. 

 

	 	(c)	 The Agent shall have received the Modification and Assumption of Combination Mortgage, Security Agreement, Assignment Of Leases And Rents And
Fixture Filing with respect to the Chilton Medical Center property which is the subject of the Facility Lease, duly executed by CAMA in the form attached as Exhibit B together with a related fixture filing and a title policy or endorsement to
the existing title policy, in each case, in form and substance reasonably satisfactory to Agent; 

  

	 	(d)	 The Agent shall have received evidence that a protective UCC-1 Financing Statement naming Clanton as debtor/lessee, CAMA as secured party/lessor
describing the personal property being leased by CAMA to Clanton pursuant to the Personal Property Lease and otherwise in form reasonably satisfactory to Agent will be filed with the appropriate central UCC filing office in the State of
Clanton’s organization to protect and perfect the rights of CAMA in the personal property being leased to Clanton under the Personal Property Lease. 

 

	 	(e)	 The Agent shall have received evidence that a UCC-1 Financing Statement naming Clanton as debtor, CAMA as secured party and Agent as assignee of
secured party and otherwise in form reasonably satisfactory to Agent will be filed with appropriate central UCC filing office in the State of Clanton’s organization to perfect the lien being granted by Clanton under the Facility Lease in the
“Intangible Property” described therein. 

  

	 	(f)	 The Agent shall have received evidence that a UCC-1 Financing Statement naming Purchaser as debtor, CAMA as secured party and Agent as assignee of
secured party and otherwise in form reasonably satisfactory to Agent will be filed with appropriate central UCC filing office in the State of Purchaser’s organization to perfect the lien being granted by Purchaser under the Membership Pledge
Agreement. 

 Section 4.      Representations and
Warranties.    Each of the Credit Parties hereby represents and warrants to the Agent and Lenders, which representations and warranties shall survive the execution and delivery of this Modification Agreement, that:

 (a)          All of the representations and warranties
contained in Article IV of the Credit Agreement shall be true and correct in all material respects (except with respect to those representations and warranties which are qualified as to materiality in which case such specific materiality qualifiers
shall apply) on the Effective Date, with the same force and effect as if made on such date, unless such representation and warranty expressly applies to an earlier date, in which case such representation and warranty shall be deemed made as of such
earlier date. 
 (b)          The execution, delivery and
performance by each Credit Party of this Modification Agreement have been duly authorized by all necessary corporate action by such Credit Party. This Modification Agreement constitutes the legal, valid and binding obligations of each Credit Party
executing the same, enforceable against each Credit Party in accordance with its terms, subject to limitations as to enforceability which might result from bankruptcy, insolvency, moratorium and other

 
similar laws affecting creditors’ rights generally and subject to limitations on the availability of equitable remedies. 

(c)          The execution, delivery and performance by each Credit
Party of this Modification Agreement will not (i) violate any provision of any law, statute, rule or regulation or any order, writ, judgment, injunction, decree, determination or award of any court, governmental agency or arbitrator presently
in effect having applicability to such Credit Party, (ii) violate or contravene any provision of the Articles or Certificates of Incorporation or Formation, bylaws, operating agreement or partnership agreement of such Credit Party, or
(iii) result in a breach of or constitute a default under any indenture, loan or credit agreement or any other agreement, lease or instrument to which such Credit Party is a party or by which it or any of its properties may be bound or result
in the creation of any Lien thereunder. 
 (d)          Except
as specifically waived hereunder, no Default or Event of Default has occurred and is continuing. 

(e)          No order, consent, approval, license, authorization or
validation of, or filing, recording or registration with, or exemption by, any governmental or public body or authority is required on the part of any Credit Party to authorize, or is required in connection with the execution, delivery and
performance of, or the legality, validity, binding effect or enforceability of, this Modification Agreement. 

Section 5.      Acknowledgment; Release. The Credit Parties (other than Clanton)
acknowledge and agree that their obligations to the Agent and the Lenders under the Credit Agreement as revised hereby are owing without offset, defense or counterclaim assertable by the Credit Parties against the Agent or any Lender. The Credit
Parties (other than Clanton) further acknowledge and agree that the Security Documents continue to secure the obligations of the Borrowers under the Credit Agreement as revised hereby. Each of the Credit Parties (including Clanton) hereby waives,
releases and discharges Agent, the Funding Agent and Lenders from any and all claims, demands, actions or causes of action arising out of or in any way relating to the Loans, the other Obligations, the Loan Documents and/or any documents,
agreements, dealings or other matters connected with any of the foregoing including, without limitation, all known and unknown matters, claims, transactions, or things occurring prior to the date of this Modification Agreement related to the Loans,
the other Obligations, the Loan Documents and/or any documents, agreements, dealings or other matters connected with any of the foregoing. 
 Section 6.      General Provisions. 
 (a)          Except as specifically revised or waived set forth above, the Credit Agreement and the other Loan Documents shall remain in full force and
effect and are hereby ratified and confirmed. Each of the Credit Parties (other than Clanton) hereby confirms its respective guarantees, pledges, grants of security interests and mortgages and other obligations, as applicable, under and subject to
the terms of each of the other Loan Documents to which it is party, and agrees that, notwithstanding the effectiveness of this Modification Agreement, such guarantees, pledges, grants of security interests and mortgages and other obligations, and
the terms of each of the other Loan Documents to which it is a party, are not impaired or affected in any manner whatsoever and shall continue to be in full force and effect after giving effect to this Modification Agreement. 

(b)          The execution, delivery and effectiveness of this
Modification Agreement shall not operate as a waiver of any right, power or remedy of the Agent or any Lender under the Credit Agreement or any other Loan Document, nor constitute amendment of any provision of the Credit Agreement or any other Loan
Document, except as specifically set forth herein. Upon the Effective Date of this Modification Agreement, each reference in the Credit Agreement to “this Modification Agreement”, 

 
“hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Credit Agreement as revised hereby. 

(c)          Each Credit Party acknowledges and agrees that the
revisions, waivers and consents set forth herein are effective solely for the purposes set forth herein and shall not be deemed (i) except as expressly provided in this Modification Agreement, to be a consent by the Agent or any Lender to any
amendment, waiver or modification of any term or condition of the Credit Agreement or of any other Loan Document, (ii) to create a course of dealing or otherwise obligate the Agent or Lenders to forbear, waive, consent or execute similar
revisions or waivers under the same or similar circumstances in the future, or (iii) to amend, prejudice, relinquish or impair any right of the Agent or Lenders to receive any indemnity or similar payment from any Person or entity as a result
of any matter arising from or relating to this Modification Agreement. 

(d)          This Modification Agreement may be executed in any number
of counterparts, each such counterpart constituting an original but all together one and the same instrument. Any party delivering an executed counterpart of this Modification Agreement by fax shall also deliver an original executed counterpart, but
the failure to do so shall not affect the validity, enforceability or binding effect of this Modification Agreement. 
 (e)          In case any provision in or obligation under this Modification Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. 

(f)          This Modification Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns. 

(g)          Without limiting the general applicability of
Section 8.2 of the Credit Agreement, the Credit Parties (other than Clanton) agree to reimburse the Agent for the reasonable fees, costs and expenses of counsel in connection with the preparation, negotiation, execution, delivery and
administration of this Modification Agreement. 

(h)          This Modification Agreement shall constitute a Loan
Document. 
 (i)          Section headings in this
Modification Agreement are included herein for convenience of reference only and shall not constitute a part of this Modification Agreement for any other purposes. 

(j)          THE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THIS
MODIFICATION AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF GEORGIA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF. 

 IN WITNESS WHEREOF, the parties hereto have executed this
Modification Agreement as of the date first written above. 
  

							
	BORROWERS:
	
	 SUNLINK HEALTH SYSTEMS, INC.,
 as a Borrower and Borrowers’ Agent

		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Chief Financial Officer
	
	 SUNLINK HEALTHCARE, LLC,
 as a Borrower

	By its Sole Member SunLink Health Systems, Inc.
		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Chief Financial Officer
	
	 DEXTER HOSPITAL, LLC,
 as a Borrower

	 By its Sole Member SunLink Healthcare, LLC

	
	 By its Sole Member SunLink Health Systems, Inc.

			
		 	By:	 	/s/ Mark J. Stockslager
		 	Name:	 	Mark J. Stockslager
		 	Title:	 	Chief Financial Officer
	
	 SOUTHERN HEALTH CORPORATION OF ELLIJAY, INC.,
 as a Borrower

		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Assistant Treasurer
	
	 SOUTHERN HEALTH CORPORATION OF DAHLONEGA, INC.,
 as a Borrower

		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Assistant Treasurer

 
							
	 SOUTHERN HEALTH CORPORATION OF
 HOUSTON, INC.,

	as a Borrower
		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Assistant Treasurer
	
	 HEALTHMONT OF GEORGIA, INC.,
 as a Borrower

		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Vice President
	
	 HEALTHMONT, LLC,

as a Borrower

	By its Sole Member SunLink Health Systems, Inc.
		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Chief Financial Officer
	
	 HEALTHMONT OF MISSOURI, LLC,
 as a Borrower

	By its Sole Member HealthMont, LLC
	
	 By its Sole Member SunLink Health Systems, Inc.

			
		 	By:	 	/s/ Mark J. Stockslager
		 	Name:	 	Mark J. Stockslager
		 	Title:	 	Chief Financial Officer
	
	 SUNLINK SERVICES, INC.,
 as a Borrower

		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Vice President

 
							
	SUNLINK SCRIPTSRX, LLC
	 (f/k/a SunLink Homecare Services, LLC),
 as a Borrower

	By its sole member SunLink Health Systems, Inc.
		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Chief Financial Officer
	
	 CENTRAL ALABAMA MEDICAL ASSOCIATES, LLC,
 as a Borrower

	By its Sole Member SunLink Healthcare, LLC
	
	 By its Sole Member SunLink Health Systems, Inc.

			
		 	By:	 	/s/ Mark J. Stockslager
		 	Name:	 	Mark J. Stockslager
		 	Title:	 	Vice President, CFO
	
	 DAHLONEGA CLINIC, LLC,
 as a Borrower

	By its Sole Member Southern Health Corporation of Dahlonega, Inc.
			
		 	By:	 	/s/ Mark J. Stockslager
		 	Name:	 	Mark J. Stockslager
		 	Title:	 	Assistant Treasurer
	
	 CARMICHAEL’S CASHWAY PHARMACY, INC.,
 as a Borrower

		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Treasurer
	
	 CARMICHAEL’S NUTRITIONAL DISTRIBUTOR, INC.,
 as a Borrower

		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Treasurer

 
			
	BREATH OF LIFE HOME HEALTH EQUIPMENT, INC.,
	as a Borrower
		
	By:	 	/s/ Mark J. Stockslager
	Name:	 	Mark J. Stockslager
	Title:	 	Treasurer

  

					
	Acknowledged and Agreed:
	
	CLANTON HOSPITAL, LLC

 By its Sole Manager Central Alabama Medical Associates, LLC 
 By
its sole member, SunLink Healthcare, LLC 
 By its Sole Member SunLink Health Systems, Inc. 

					
			
		 	By:	 	/s/ Mark J. Stockslager
		 	Name:	 	Mark J. Stockslager
		 	Title:	 	Chief Financial Officer

 
			
	AGENT:
	
	 CHATHAM CREDIT MANAGEMENT III, LLC,
 as Agent

		
	By:	 	/s/  Nick Anacreonte
	Name:	 	Nick Anacreonte
	Title:	 	Partner

 
			
	FUNDING AGENT:
	
	 UNION BANK OF CALIFORNIA, N.A.,
 as Funding Agent

		
	By:	 	/s/ M. Duncan McDuffie
	Name:	 	M. Duncan McDuffie
	Title:	 	Vice President

 
			
	LENDERS:
	
	 CHATHAM CREDIT

MANAGEMENT III, LLC, not
 individually, but as
agent for
 CHATHAM INVESTMENT FUND QP

III, LLC, as a Lender and CHATHAM
 INVESTMENT
FUND III, LLC, as a
 Lender

		
	By:	 	/s/  Nick Anacreonte
	Name:	 	Nick Anacreonte
	Title:	 	Partner

 
			
	LENDERS:
	
	 UNION BANK OF CALIFORNIA,
 N.A., as a Lender

		
	By:	 	/s/ M. Duncan McDuffie
	Name:	 	M. Duncan McDuffie
	Title:	 	Vice PresidentPurchase and Sale Agreement

 Exhibit 10.2 
 PURCHASE AND SALE AGREEMENT 
 THIS PURCHASE AND SALE
AGREEMENT (the “Agreement”) is made and entered into by and between Central Alabama Medical Associates, LLC (“Seller”) and Clanton Hospital, LLC (“Buyer”) (together, the “Parties”). 

RECITALS 
 WHEREAS, Buyer and Seller desire to be bound be the terms of this Purchase and Sale Agreement in the event that Buyer exercises Buyer’s options as set forth in (i)Article XIX of the Lease Agreement
between the Parties entered into March 1, 2011 (the “Lease Agreement”) and (ii) Section 10 of the Personal Property Lease Agreement between the Parties entered into March 1, 2011 (the “Personal Property Lease
Agreement”); and 
 WHEREAS, all capitalized terms not separately defined herein and which are defined in
the Lease Agreement, are used herein as defined in the Lease Agreement. 
 NOW THEREFORE, Subject to the terms
and conditions of this Purchase Agreement, and for and in consideration of the sum of Ten Dollars ($10.00) and other valuable consideration to it in hand paid, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as
follows: 
 1.      BUYER’S OPTION. Upon the exercise by Buyer of
Buyer’s Option set forth in Article XIX of the Lease Agreement, this Purchase Agreement shall be and become effective without any further act on behalf of Seller or Buyer. The effective date of this Purchase Agreement (the “Effective
Date”) shall be the date of Buyer’s delivery of notice to Seller of Buyer’s exercise of the Option, and each of the time periods set forth in this Purchase Agreement shall proceed from the Effective Date. In the event that Buyer
elects not to exercise the Option on or before the expiration of the Option Term, this Purchase Agreement shall of no further force and effect. 
 2.      PURCHASE AND SALE. Subject to the terms and conditions of this Purchase Agreement, and for and in consideration of the sum of Ten Dollars ($10.00) and other valuable
consideration to it in hand paid, the receipt and sufficiency of which are hereby acknowledged, Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller all Seller’s right, title and interest in and to the following
(collectively with the foregoing, the “Leased Property”): 

a.      That certain real Leased Property located in the City of Clanton,
Chilton, County, Alabama, as more particularly described on Exhibit “A” attached hereto and made a part hereof, including all right, title and interest of Seller, if any, in and to all adjacent streets, alleys, waterways, rights of way,
buildings, improvements, and structures, any strips or gores between the Leased Property and adjacent properties, including all water and mineral rights, and all plants, shrubbery, trees, timber and all tenements, hereditaments, easements, access
rights, and parking rights benefitting the Leased Property. All of Seller’s rights and interest in and to the following (collectively the “Leased Property”): 

 b.      all buildings,
structures, fixtures and other improvements of every kind now or hereafter located on the Land including, alleyways and connecting tunnels, sidewalks, utility pipes, conduits and lines (on-site and off-site to the extent Seller has obtained any
interest in the same), parking areas and roadways appurtenant to such buildings and structures (collectively, the “Leased Improvements”); 

c.      all easements, rights and appurtenances relating to the Land and
the Leased Improvements (collectively, the “Related Rights”); 

d.      all equipment, machinery, fixtures, and other items of real
property constituting fixtures, including all components thereof, now and hereafter located in, and permanently affixed to or incorporated into the Leased Property, including all furnaces, boilers, heaters, permanently installed electrical, heating,
plumbing, lighting, ventilating, refrigerating, incineration, air and water pollution control, waste disposal, air-cooling and air-conditioning systems, apparatus, sprinkler systems, fire and theft protection equipment, and built-in oxygen and
vacuum systems, all of which are hereby deemed to constitute real estate, together with all replacements, modifications, alterations and additions thereto (collectively, the “Fixtures”); and 

e.      the “Leased Assets” as defined in the Personal Property
Lease Agreement. 
 SUBJECT, HOWEVER, to the easements, encumbrances, covenants, conditions and restrictions of
record and to other matters which affected the Leased Property as of the Commencement Date or created thereafter but free and clear of the (i) the lien of that certain Combination Mortgage, Security Agreement, Assignment of Leases and Rents and
Fixture Filing dated as of April 18, 2008 from Buyer to Chatham Credit Management III, LLC, (ii) the Security Agreement dated as of April 23, 2008 among SunLink Health Systems, Inc., Buyer and other subsidiaries of SunLink and Chatham
Credit Management, LLC and (iii) any Facility Mortgage or security agreement that may be entered into by Seller after the Commencement Date. 
 3.      PURCHASE PRICE. Subject to credits, adjustments and prorations for which provisions are hereinafter made in this Purchase Agreement, the total purchase price to be
paid by Buyer for the Leased Property, and received and accepted by Seller, is Three Million Seven Hundred Thousand and 00/100 Dollars ($3,700,000.00) less up to Six Hundred Fifteen Thousand and 00/100 Dollars ($615,000) to the extent paid by Buyer
or Guarantor to purchase all or a portion of the seventeen percent (17%) membership interest owned by physicians on the staff of the Facility (“Purchase Price”). The Purchase Price shall be payable at Closing by wire transfer of
immediately available funds to an account designated by the Escrow Agent. Upon payment in full of the Purchase Price, any unpaid balance of the Promissory Note shall be cancelled and any principal amount theretofore paid by Carraway Medical Systems,
LLC on the Promissory Note may be credited against the Purchase Price, provided, however, that any amount included in the principal of the Promissory Note on account of the purchase of networking capital shall not be cancelled and shall be paid over
to Seller plus accrued and unpaid interest thereon at 6% per annum. 

  
 2 

 4.      EARNEST MONEY. Concurrently with the
exercise by Buyer of its option as set forth in Article XIX of the Lease Agreement, the sum of One Hundred Thousand and 00/100 Dollars ($100,000.00) shall be deposited with Seller by Buyer as an earnest money deposit (the “Earnest Money”)
and shall be held subject to disbursement in accordance with the terms and provisions of this Purchase Agreement. Except as otherwise provided elsewhere in this Purchase Agreement, the Earnest Money and any interest earned thereon shall be credited
to and considered as payment of part of the total Purchase Price for the Leased Property at the time of the Closing. 
 5.      COVENANTS, REPRESENTATIONS AND WARRANTIES OF SELLER. Seller hereby covenants, represents and warrants to Buyer that the following facts are, as of the date hereof,
and will be, as of the date of Closing, true and correct: 

a.      Seller is the owner of fee simple title to the Leased Property and
has full right, power and authority to execute, deliver and carry out the terms and conditions of this Purchase Agreement and all other documents to be executed and delivered by Seller pursuant to or in connection with this Purchase Agreement. All
requisite resolutions, corporation or partnership, and any other consents, necessary for the consummation by Seller of the transaction herein described, have been or will before Closing be duly adopted and obtained. 

b.      No person or entity has any right of first refusal or option
granted by Seller to acquire the Leased Property. 

c.      Except as set forth in this Section 5 and otherwise in this
Purchase Agreement, the Leased Property is being sold “As-Is”, “where-is”. 

6.      TITLE AND SURVEY. 

a.      Title Commitment. Within thirty (30) days after the execution
hereof, Buyer may, in Buyer’s discretion and at Buyer’s cost, obtain and provide a copy to Seller a Commitment for Owner’s Title Insurance listing Buyer as the named insured (the “Title Commitment”) issued by a title company
of Buyer’s choosing (“Title Insurer”), setting forth the state of title to the Leased Property and all exceptions, including easements, deed restrictions, other restrictions, rights of way, covenants, reservations, and other
conditions, if any, affecting the Leased Property which would appear in an Owner’s Title Policy, if issued, and a certificate from the Title Insurer, indicating the amount, if any (or if none, so stating), of any real estate taxes attributable
to the Leased Property including, without limitation, taxes arising by virtue of any special use valuations affecting the Leased Property. 
 b.      Survey. Buyer may, in Buyer’s discretion and at Buyer’s cost, obtain a survey of the Leased Property (the “Survey”). In the event that Buyer
elects to obtain the Survey, then the Survey shall contain a legally sufficient description of the metes and bounds of the Leased Property which shall automatically (i) become a part of this

  
 3 

 
Purchase Agreement without the necessity of any further action by Seller or Buyer, (ii) replace the description of the Leased Property attached hereto as Exhibit “A”, and
(iii) be used in the deed at Closing. 
 c.      Title
Objections and Permitted Exceptions. In the event any exceptions appear in such Title Commitment or title documents or in the Survey that arose by, through or under Seller and not by, through or under Buyer which are unacceptable to Buyer
(“Buyer’s Objections”), then Buyer shall notify Seller in writing of such fact on or before the expiration of the Inspection Period. Seller shall use its best efforts to eliminate or modify such unacceptable exceptions to the
reasonable satisfaction of Buyer. In addition, Seller shall be obligated to remove at Closing, all mortgages, deeds of trust or other liens or encumbrances which encumber the Leased Property which can be cured or removed by the payment of money.
Buyer reserves the right to object, on or before the Closing Date, to any new matter shown in an updated title commitment, revised survey, updated title search, or any other new matter which arose by, through or under Seller and not by, through or
under Buyer which are (hereinafter, “New Matter”) of title not included in the Title Commitment or not shown on the Survey at the time Buyer delivers Buyer’s Objections to Seller. In the event that such New Matter is not cured by
Seller for any or no reason, Buyer shall be entitled to terminate this Purchase Agreement and receive a full refund of the Earnest Money. Any exceptions to title to which Buyer does not object on or before Closing and any matter objected to but not
cured by Seller and which Buyer elects to accept shall be deemed to be “Permitted Exceptions.” 

7.      CLOSING.  The Closing shall take place at the offices of Smith,
Gambrell & Russell, LLP, 1230 Peachtree Street, Suite 3100, Promenade II, Atlanta, Georgia 30309 or such other location as may be determined by Buyer, on or before thirty (30) days following the later to occur of (i) the
expiration of the Inspection Period, or (ii) the date upon which Buyer receives Loan Approval (the “Closing Date”). To the extent possible, the parties agree to cooperate to close the transaction by mail through the Title Insurer.
Seller shall deliver possession of the Leased Property to Buyer at Closing. 

a.      At Closing, Seller shall deliver to Buyer the following items,
which items shall be in form and substance reasonably satisfactory to Buyer: 

  i.      A Special or Limited Warranty Deed with covenants only
against grantor’s acts, in recordable form conveying good and valid fee simple title to the Leased Property, subject only to the Permitted Exceptions, reciting only nominal consideration and a quitclaim deed to the Leased Property based upon
the Survey. 
  ii.      A standard non foreign affidavit
stating Seller is not a foreign entity. 
 iii.      An
owner’s affidavit in the form required by the Title Insurer. 

  
 4 

 iv.      Any other items or
documents affecting the conveyance and sale of the Leased Property which may be reasonably requested by the Buyer or the Title Insurer to satisfy the Seller’s requirements and the “standard exceptions” as set forth in the Title
Commitment. 
 b.      Buyer shall deliver to Seller: 

 i.      The Purchase Price provided for in Section 2 herein.

 ii.      Any other items or documents affecting the conveyance
and sale of the Leased Property which may be reasonably requested by Seller or the Title Insurer. 

8.      COSTS PAID AT CLOSING. Seller shall pay the cost of Seller’s counsel, the cost
of preparing the deed, real property transfer tax (if any), document taxes and all charges for the preparation and recordation of any releases or instruments required to clear Seller’s title for conveyance in accordance with the provisions of
this Purchase Agreement. Buyer will pay the cost of Buyer’s counsel, the cost of any survey or survey update, recording fees, all charges for the recordation of the instruments conveying title to the Leased Property and the cost of an
Owner’s policy of title insurance. 
 9.      PRORATIONS.  There
will be no proration of income and expense attributable to the Leased Property, including all ad valorem taxes for the then current year utilities, or other customarily proratable items of income as Buyer will have been responsible for all such
items under the Lease Agreement. 
 10.    RISK OF LOSS.  The risk and liability
for loss, damage, destruction or injury by casualty to the Leased Property from all causes until the Closing has been consummated shall be borne by Buyer under the terms of the Lease Agreement. 

11.    APPLICATION OF EARNEST MONEY AND REMEDIES UPON DEFAULT. 

a.      Earnest Money. Upon the Closing of the purchase and sale hereunder,
the Earnest Money shall be applied to and credited toward the Purchase Price. 

b.      Seller Default. If the purchase and sale hereunder are not closed
by reason of Seller’s default hereunder, Buyer’s sole and exclusive remedies shall be the right to (i) specific performance of this Purchase Agreement or (ii) terminate this Purchase Agreement and receive a refund of the Earnest
Money. 
 c.      Buyer Default. If the purchase and sale
hereunder are not closed by reason of Buyer’s material default hereunder, then, as full liquidated damages for such default by Buyer, the Earnest Money shall be immediately paid to Seller. It is specifically understood and agreed that payment
of the Earnest Money to Seller, as liquidated damages, shall be Seller’s sole and exclusive remedy hereunder. The parties 

  
 5 

 
acknowledge that the actual amount of the damages which Seller would sustain as a result of Buyer’s breach of this Purchase Agreement are difficult or impossible to estimate and that the
payment of Earnest Money to Seller represents the parties’ best estimate of Seller’s damages in the event of such breach and is not to be construed as a penalty or forfeiture. The said stipulated sum is a reasonable pre-estimate of the
probable loss resulting from such a breach. 
 12.      BROKERAGE. Seller and
Buyer each represent and warrant to the other that neither has employed, retained or consulted any broker, agent, consultant, or finder in carrying on the negotiations in connection with this Purchase Agreement or the purchase and sale referred to
herein, and Seller and Buyer shall each indemnify and hold the other harmless from and against any and all claims, demands, causes of action, debts, liabilities, judgments and damages (including costs and reasonable attorneys’ fees incurred in
connection with the enforcement of this indemnity) which may be asserted or recovered against the indemnitor’s breach of this representation and warranty. The indemnity in this Paragraph shall survive the Closing or any termination of this
Purchase Agreement. Seller shall pay a brokerage commission to Broker in connection with this transaction at Closing pursuant to a separate Purchase Agreement. 
 13.      MISCELLANEOUS. 

Assignment.    Buyer shall obtain Seller’s consent, which such consent shall not be
unreasonably withheld, prior to assigning Buyer’s rights in this Purchase Agreement; provided, however, Buyer may assign Buyer’s rights in this Purchase Agreement to an affiliated entity of Buyer without the consent of Seller. 

Notices.  Any notice, consent, approval, waiver, and election which any party shall be required or
permitted to make or give under this contract shall be in writing and shall be deemed to have been sufficiently made or given if delivered by hand, courier, telecopier, certified mail, or overnight delivery service (such as Federal Express or United
Parcel Service), addressed to the respective parties at the addresses below: 
  

					
	 TO SELLER:
	  		 	
		
		  	 Central Alabama Medical Associates, LLC

c/o SunLink Health Systems, Inc.
 900 Circle 75 Parkway
 Suite 1120

Atlanta, GA 30339

		  	 Phone:
	 	 (770) 933-7000

		  	 Fax:
	 	 (770) 933-7010

		  	 Attention: Robert M. Thornton, Jr.

			
	 TO BUYER:
	  		 	
		
		  	 Clanton Hospital, LLC
 1010 Lay Dam Road (State Route 145)

  
 6 

					
		  	 Clanton, AL 35045
 Phone: 205-755-2500
 Fax:

Attention: James R. Cheek

 Such notices shall be deemed received upon delivery when delivered by hand, by courier or by overnight delivery service. Each notice given by telecopy shall be deemed given on the date shown on the
sender’s copy thereof or confirmation notice showing date, time of transmission and number of pages transmitted. In the event that the telecopy transmission to the above facsimile phone number fails for any reason, said notice shall be deemed
given on the date shown on the sender’s copy thereof or confirmation notice showing date and time of attempted transmission, so long as the sender makes reasonable efforts thereafter to deliver such notice. Refusal to accept, or inability to
deliver because of changed address of which no notice was given, shall be deemed receipt on the date of such refusal of delivery or inability to deliver. 
 Either party may, from time to time, change the address to which notices shall be sent by like notice given to the other party hereto, except that no party may change its address to other than a street
address. Any notice given that does not conform to this paragraph shall be effective only upon receipt. 

Entire Purchase Agreement.    This Purchase Agreement, with the exhibits attached hereto,
constitutes the entire Purchase Agreement between Seller and Buyer, and there are no other covenants, Purchase Agreements, promises, terms, provisions, conditions, undertakings, or understandings, either oral or written, between them concerning the
Leased Property other than those herein set forth and in the Lease Agreement. No subsequent alteration, amendment, change, deletion or addition to this Purchase Agreement shall be binding upon Seller or Buyer unless in writing and signed by both
Seller and Buyer. 
 Headings.  The headings, captions, numbering system, etc., are inserted
only as a matter of convenience and may not be considered at interpreting the provisions of the Purchase Agreement. 
 Binding Effect.    All of the provisions of this Purchase Agreement are hereby made binding upon the personal representatives, heirs, successors, and assigns of all parties
hereto. 
 Time of Essence.  Time is of the essence of this Purchase Agreement. 

Unenforceable or Inapplicable Provisions.    If any provision hereof is for any reason
unenforceable or inapplicable, the other provisions hereof will remain in full force and effect in the same manner as if such unenforceable or inapplicable provision had never been contained herein. 

Counterparts.    This Purchase Agreement may be executed in any number of counterparts, each
of which will for all purposes be deemed to be an original, and all of which are identical. 

  
 7 

 Facsimile Signature.    A signature transmitted
by facsimile transmission shall be effective between the parties. 
 Applicable Law, Place of
Performance.    This Purchase Agreement shall be construed under and in accordance with the laws of the State of Alabama. 
 Construction.    The parties acknowledge that each party and its counsel have reviewed and approved this Purchase Agreement and that the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Purchase Agreement or any amendments or exhibits hereto. 

Business Days.    If the final day of any period or any date of performance under this
Purchase Agreement falls on a Saturday, Sunday or legal holiday, then the final day of the period or the date of performance shall be extended to the next day which is not a Saturday, Sunday or legal holiday. 

Telecopies.    The parties hereto agree that documents transmitted by telecopy or facsimile
transmission shall be deemed to be written instruments and shall be binding on the parties executing and delivering such documents. 

  
 8 

 IN WITNESS WHEREOF, the Parties have caused this Purchase and Sale Agreement
to be duly executed as of the date first above written. 
  

					
		 	CENTRAL ALABAMA MEDICAL ASSOCIATES, LLC
		 	By its Sole Member SunLink Healthcare, LLC
		 	By its Sole Member SunLink Health Systems, Inc.
			
		 	By:	 	/s/ Mark J. Stockslager
		 	Name:	 	Mark J. Stockslager
		 	Title:	 	Chief Financial Officer
		
		 	CLANTON HOSPITAL, LLC
		 	By: By its Sole Member
		 	Carraway Medical Systems, LLC
		 	By its Manager,
		 	James R. Cheek
			
		 	By:	 	/s/ James R. Cheek
		 	Name:	 	James R. Cheek
		 	Title:	 	Manager

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