Document:

EX-4.4

 Exhibit 4.4 
 EXECUTION VERSION 
 STOCKHOLDERS AGREEMENT 

THIS STOCKHOLDERS AGREEMENT (this “Agreement”) is made and entered into as of November 1, 2011, by and among Acadia
Healthcare Company, Inc., a Delaware corporation (the “Company”), each of the Persons listed on the Schedule of WCP Investors attached hereto, and each of the Persons listed on the Schedule of Management Investors
attached hereto (collectively referred to herein as the “Management Investors” and each individually as a “Management Investor”). The WCP Investors and the Management Investors are collectively referred to herein as
the “Stockholders” and each individually as a “Stockholder.” The Company and the Stockholders are sometimes collectively referred to herein as the “Parties” and each individually as a
“Party.” Capitalized terms used and not otherwise defined herein have the meanings set forth in Section 6. 
 WHEREAS, the WCP Investors and the Management Investors collectively own all of the outstanding equity securities of Acadia Healthcare Holdings, LLC, a Delaware limited liability company and the sole
stockholder of the Company as of the date hereof (“Holdings”); 
 WHEREAS, the Company is party to an Agreement
and Plan of Merger, dated as of May 23, 2011 (the “Merger Agreement”), pursuant to which, among other things, PHC, Inc., a Massachusetts corporation, will merge with and into Acadia Merger Sub, LLC, a Delaware limited liability
company and wholly-owned subsidiary of the Company (“Merger Sub”), with Merger Sub surviving as the surviving corporation in such merger (the “Merger”); 

WHEREAS, in connection with the transactions contemplated by the Merger Agreement, the WCP Investors desire to cause the liquidation and
dissolution of Holdings and the distribution of cash and shares of the Company’s common stock, par value $0.01 per share (“Common Stock”), to the members of Holdings in accordance with the terms of the limited liability company
agreement of Holdings (the “Distribution”); and 
 WHEREAS, in connection with the consummation of the
transactions contemplated by the Merger Agreement and the dissolution and liquidation of Holdings, each of the Company and the Management Investors has agreed to enter into this Agreement for the benefit of the WCP Investors for the purposes, among
others, of (i) providing the WCP Investors with the right to designate the election of certain members of the board of directors of the Company (the “Board”), (ii) setting forth the agreement of the Management Investors
with respect to the voting of their Stockholder Shares, and (iii) limiting the manner and terms pursuant to which the Management Investors may transfer certain of their Stockholder Shares. 

NOW, THEREFORE, in consideration of the mutual covenants, agreements and understandings contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

Section 1. Board of Directors. 
 1A. Board Composition. From and after the Effective Time (as defined in the Merger Agreement) and until the provisions of this Section 1A cease to be effective in accordance with
Section 1D, each Stockholder shall vote or cause to be voted all of his, her or its Stockholder Shares and any other voting securities of the Company over which such Stockholder has voting control and shall take all other customary and
reasonable actions within his, her or its control (whether in such Stockholder’s capacity as a stockholder, director, member of a board committee or officer of the Company or otherwise (unless, in the case of any action in such
Stockholder’s capacity as an officer, director or member of a board committee, such action would be inconsistent with such Stockholder’s fiduciary duties under 

 
applicable laws), and including attendance at meetings in person or by proxy for purposes of obtaining a quorum and execution of written consents in lieu of meetings), and the Company shall take
all necessary or desirable actions within its control (including calling special board and stockholder meetings, causing the designated individuals to be nominated for election to the Board, soliciting proxies in favor thereof and recommending that
stockholders of the Company elect to the Board each such designee), so that: 
 (i) except as otherwise contemplated by the
Certificate of Incorporation, (a) the authorized number of directors on the Board shall be established and maintained at twelve (12), (b) from and after the effective time of the Merger, the Board shall be divided into three classes
designated as Class I, Class II and Class III, (c) the term of office of the initial Class I directors shall expire at the first annual meeting of stockholders after the Merger, the term of office of the initial
Class II directors shall expire at the second succeeding annual meeting of stockholders after the Merger and the term of office of the initial Class III directors shall expire at the third succeeding annual meeting of the stockholders
after the Merger, and (d) at each annual meeting of stockholders after the Merger, directors elected to replace those of a Class whose terms expire at such annual meeting shall be elected to hold office until the third succeeding annual meeting
after their election and until their respective successors shall have been duly elected and qualified; 
 (ii) the following
persons shall be appointed to the Board as of immediately prior to the effective time of the Merger and nominated for re-election and elected to the Board as set forth below: 

(a) Joey A. Jacobs, as a Class III director and, after the expiration of his initial term as a director, for so long as he
serves as the chief executive officer of the Company or any of its Subsidiaries; 
 (b) Bruce A. Shear, as a
Class III director and, after the expiration of his initial term as a director, for one additional three-year term as a Class III director; 
 (c) three (3) representatives who meet the applicable director independence requirements of The Nasdaq National Market or any other securities exchange on which the securities of the Company may be
listed from time to time, one (1) of which shall be a Class II director designated by Bruce A. Shear and two (2) of which shall be Class III directors designated by the Board; 

(d) (I) for so long as the WCP Investors retain voting control over at least 50% of the outstanding voting securities of
the Company, seven (7) representatives designated by the WCP Investors, four (4) of which shall be Class I directors and three (3) of which shall be Class II directors; and (II) from and after such time as the WCP Investors cease to
have voting control over at least 50% of the outstanding voting securities of the Company, such number of directors that, when compared to the authorized number of directors on the Board, is closest to but not less than proportional (which, for the
avoidance of doubt, shall mean that the number of representatives shall be rounded up to the next whole number in all cases) to the total number of Stockholder Shares over which the WCP Investors retain voting control relative to the total number of
Stockholder Shares then issued and outstanding (it being understand that no reduction in the number of Stockholder Shares over which the WCP Investor retain voting control shall shorten the term of any incumbent director); 

(iii) if any director elected by virtue of being designated pursuant to Section 1A(ii) for any reason ceases to serve as a
member of the Board during his or her term of office, the resulting vacancy on the Board shall be filled by a representative designated by the Person(s) entitled to designate such director pursuant to Section 1A(ii); and 

  
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 (iv) a director shall be removed from the Board only upon the request of the Person(s)
entitled to designate such director pursuant to Section 1A(ii), and not otherwise. 
 1B. Controlled Company.
For so long as the Company qualifies as a “controlled company” under the applicable listing standards then in effect, the Company will elect to be a “controlled company” for purposes of such applicable listing standards, and will
disclose in its annual meeting proxy statement that it is a “controlled company” and the basis for that determination. The Company, the WCP Investors and the Management Investors acknowledge and agree that, as of the date of this
Agreement, the Company is a “controlled company.” 
 1C. Reimbursement; Compensation. The Company shall pay the
reasonable out-of-pocket expenses (including travel expenses) incurred by each of the Company’s directors in connection with attending the meetings of the Board and any committee thereof. The Company shall use its best efforts to maintain in
effect at all times directors and officers indemnity insurance coverage reasonably satisfactory to the Majority WCP Investors, and the Certificate of Incorporation and Bylaws shall at all times provide for indemnification, exculpation and
advancement of expenses to the fullest extent permitted under applicable law. 
 1D. Termination. The provisions of
Section 1A shall terminate automatically and shall be of no further force and effect from and after such time as the WCP Investors cease to hold at least 17.5% of the outstanding voting securities of the Company. The provisions of
Section 1C shall terminate automatically and shall be of no further force and effect from and after such time as no person who is a current or former officer, employee, manager, director, member, partner or co-investor of any WCP
Investor shall serve as a member of the Board. 
 Section 2. Voting Agreement; Irrevocable Proxy; Conflicting
Agreements. 
 2A. Voting Agreement. In the event that the approval of the Company’s stockholders is required in
connection with any election or removal of directors, merger, consolidation, business combination, recapitalization, conversion, sale, lease or exchange of all or substantially all of its property or assets, authorization or issuance of capital
stock or other securities (including, without limitation, the adoption of any incentive equity plan), executive compensation, stockholder proposal, amendment to or restatement of the certificate of incorporation or bylaws, or dissolution,
liquidation or winding up, whether at a meeting or by written consent, whether required by law or pursuant to the Certificate of Incorporation or Bylaws or pursuant to any contractual agreement to which such Management Investor is a party or is
bound, each Management Investor shall vote all of his, her or its Stockholder Shares and any other voting securities of the Company over which such holder has voting control, and shall take all other necessary or desirable actions within his, her or
its control (whether in his, her or its capacity as a stockholder, director, member of a board committee or officer of the Company or otherwise (unless, in the case of any action in such Management Investor’s capacity as an officer, director or
member of a board committee, such action would be inconsistent with such Management Investor’s fiduciary duties under applicable laws), and including attendance at meetings in person or by proxy for purposes of obtaining a quorum and execution
of written consents in lieu of meetings), so that all such Stockholder Shares and other voting securities of the Company are voted as directed by the Majority WCP Investors; provided that, in the case of any election or removal of directors,
such direction is consistent with the provisions of Section 1A. 
 2B. Irrevocable Proxy. In order to secure
the obligation to vote his, her or its Stockholder Shares and other voting securities of the Company in accordance with the provisions of Section 1A and Section 2A, each Management Investor hereby appoints Waud Capital
Partners II, L.P. (“WCP”) as such Management Investor’s true and lawful proxy and attorney-in-fact, with full power of 

  
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substitution, to vote all of such Management Investor’s Stockholder Shares and any other voting securities of the Company over which such Management Investor has voting control for the
election and/or removal of directors and all such other matters as expressly provided for in Section 1A and Section 2A. WCP may exercise the irrevocable proxy granted to it hereunder at any time a Management Investor fails to
comply with the provisions of this Agreement. The proxies and powers granted by each Management Investor pursuant to this Section 2B are coupled with an interest and are given to secure the performance of his, her or its obligations
under this Agreement. Such proxies and powers will be irrevocable for the term of this Agreement and will survive the death, incompetence or disability of such Management Investor. 

2C. Representations and Warranties; Conflicting Agreements. Each Stockholder represents that (i) this Agreement has been duly
authorized, executed and delivered by such Stockholder and constitutes the valid and binding obligation of such Stockholder, enforceable in accordance with its terms, and (ii) such Stockholder has not granted and is not a party to any proxy,
voting trust or other agreement which is inconsistent with or conflicts with the provisions of this Agreement. No Management Investor shall grant any proxy or become party to any voting trust or other agreement which is inconsistent with or
conflicts with the provisions of this Agreement. 
 2D. Termination. The provisions of Section 2A and
Section 2B shall terminate automatically and shall be of no further force and effect from and after such time as the WCP Investors cease to hold at least 17.5% of the outstanding voting securities of the Company. 

Section 3. Transfers of Restricted Common Stock. 
 3A. Required Consent. No Management Investor shall Transfer any interest in any Restricted Shares without first obtaining the prior written consent of the Majority WCP Investors, which consent may
be withheld in the Majority WCP Investors’ sole discretion (the “Required Consent”), except that the Management Investors may Transfer Restricted Shares to their respective Permitted Transferees, provided that such Management
Investor retains voting control of such Restricted Shares (such transfers, the “Exempt Transfers”). If any Person acquires Restricted Shares in an Exempt Transfer by virtue of such Person’s qualification as a Permitted
Transferee of a transferor, and such Person shall, at any time, cease to be a Permitted Transferee of such transferor, then such Person shall be required to Transfer such Person’s Restricted Shares to a Person that does qualify at the time of
such required transfer as a Permitted Transferee of the original transferor. 
 3B. Additional Restrictions on Transfer.

 (i) Execution of Counterpart. Each Transferee of Restricted Shares (including any Permitted Transferee in connection
with an Exempt Transfer) shall, as a condition precedent to such Transfer, agree to be bound by the provisions of this Agreement applicable to Management Investors. Notwithstanding the foregoing, any Person who acquires in any manner whatsoever any
Restricted Shares, irrespective of whether such Person has agreed to the terms and provisions of this Agreement, shall be deemed by the acceptance of the benefits of the acquisition thereof to have agreed to be subject to and bound by all of the
terms and conditions of this Agreement that any predecessor in such Restricted Shares of such Person was subject to or by which such predecessor was bound. 
 (ii) Notice. In connection with any Transfer or potential Transfer of any Restricted Shares, the holder of such Restricted Shares will deliver written notice to the Company and the WCP Investors
describing in reasonable detail the Transfer or proposed Transfer. 

  
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 (iii) Legal Opinion. No Transfer of Restricted Shares may be made unless such
Transfer would not violate any federal securities laws applicable to the Company, the Transferor or the Restricted Shares to be Transferred. Upon reasonable request of the Company or the Majority WCP Investors, the proposing Transferor shall deliver
to the Company and the WCP Investors prior to the date of the Transfer an opinion of counsel reasonably acceptable to the Company as to the foregoing. 
 (iv) No Avoidance of Provisions. No holder of Restricted Shares shall directly or indirectly (i) permit the Transfer of all or any portion of the direct or indirect equity or beneficial
interest in such holder or (ii) otherwise seek to avoid the provisions of this Agreement by issuing, or permitting the issuance of, any direct or indirect equity or beneficial interest in such holder, in any such case in a manner which would
fail to comply with this Section 3 if such holder had Transferred Restricted Shares directly. 
 3C. Legend.
Each certificate evidencing Restricted Shares and each certificate issued in exchange for or upon the Transfer of any Restricted Shares (if such shares remain Restricted Shares as defined herein after such Transfer) shall be stamped or otherwise
imprinted with a legend in substantially the following form: 
 “THE TRANSFER OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE IS SUBJECT TO THE CONDITIONS SPECIFIED IN A STOCKHOLDERS AGREEMENT, DATED AS OF NOVEMBER [    ], 2011, BY AND AMONG THE ISSUER OF SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF ITS STOCKHOLDERS
(THE “STOCKHOLDERS AGREEMENT”). A COPY OF SUCH CONDITIONS SHALL BE FURNISHED BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE.” 
 The Company shall imprint such legend on certificates evidencing Restricted Shares outstanding prior to the date hereof. The legend set forth above shall be removed from the certificates evidencing any
shares which cease to be Restricted Shares. 
 3D. Transfer Fees and Expenses. The Transferor and Transferee of any
Restricted Shares or other interest in the Company shall be jointly and severally obligated to reimburse the Company and the WCP Investors for all reasonable expenses (including attorneys’ fees and expenses) incurred by the Company or the WCP
Investors, as applicable, in connection with any Transfer or proposed Transfer, whether or not consummated. 
 3E. Void
Transfers. Any Transfer of any Restricted Shares in contravention of this Agreement (including, without limitation, the failure of the Transferee to agree to be bound by the provisions of this Agreement applicable to Management Investors) shall
be void and ineffectual and shall not bind or be recognized by the Company or any other Person. 
 Section 4. Lock-Up
Agreement. No Management Investor or other holder of Restricted Shares shall (A) offer, sell, contract to sell, pledge or otherwise dispose of (including sales pursuant to Rule 144), directly or indirectly, any equity securities of the
Company or any of its Subsidiaries, or any securities convertible into or exchangeable or exercisable for such securities (including equity securities of the Company or any of its Subsidiaries that may be deemed to be owned beneficially by such
holder in accordance with the rules and regulations of the Securities and Exchange Commission), (B) enter into a transaction which would have the same effect as described in clause (A) above, (C) enter into any swap, hedge or
other arrangement that transfers, in whole or in part, any of the economic consequences or 

  
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ownership of any securities referred to in clause (A) above, whether such transaction is to be settled by delivery of such securities, in cash or otherwise (each of (A),
(B) and (C) above, a “Sale Transaction”), or (D) publicly disclose the intention to enter into any Sale Transaction, in any such case from the date the Company gives notice to the Management Investors
that a preliminary or final prospectus has been circulated for a Public Offering and during the 90 days following the date of the final prospectus for such Public Offering (a “Holdback Period”), except as part of any such Public
Offering, unless the underwriters managing such Public Offering otherwise agree in writing. If requested by the managing underwriters, each Management Investor and each other holder of Restricted Shares agrees to execute customary lock-up agreements
consistent with the foregoing obligations with the managing underwriter(s) of an underwritten offering with a duration not to exceed the Holdback Period. If (i) the Company issues an earnings release or discloses other material information or a
material event relating to the Company occurs during the last 17 days of the Holdback Period or (ii) prior to the expiration of the Holdback Period, the Company announces that it will release earnings results during the 16-day period beginning
upon the expiration of such period, then to the extent necessary for a managing or co-managing underwriter of a registered offering required hereunder to comply with FINRA Rule 2711(f)(4), the Holdback Period will be extended until 18 days after the
earnings release or disclosure of other material information or the occurrence of the material event, as the case may be (a “Holdback Extension”). The Company may impose stop-transfer instructions with respect to the shares of its
common stock (or other securities) subject to the foregoing restriction during any Holdback Period or any period of Holdback Extension. 
 Section 5. Certain Affirmative and Negative Covenants. 
 5A.
Financial Statements and Other Information. Subject to the last sentence of this Section 5A, for so long as the WCP Investors continue to hold at least 17.5% of the outstanding voting securities of the Company (it being understood
that, for purposes of this Section 5A, (x) all holdings of Equity Securities by Persons who are Affiliates of each other shall be aggregated for purposes of meeting any threshold tests under this Agreement and (y) no Management
Investor shall be deemed an Affiliate of any WCP Investor), the Company shall deliver to each WCP Investor: 
 (i) as soon as
available but in any event within thirty (30) days after the end of each monthly accounting period in each fiscal year, unaudited consolidated and consolidating statements of income or operations, stockholders’ equity (or the equivalent)
and cash flows of the Company and its Subsidiaries for such monthly period and for the period from the beginning of the fiscal year to the end of such month, and an unaudited consolidated and consolidating balance sheet of the Company and its
Subsidiaries as of the end of such monthly period, setting forth for each monthly accounting period in each fiscal year comparisons to the Company’s annual budget and to the corresponding period in the preceding fiscal year, and all such
statements shall be prepared in accordance with GAAP, consistently applied (except for the absence of footnotes and subject to changes resulting from normal year-end audit adjustments for recurring accruals of the types included in the audited
financial statements of the Company and its Subsidiaries in prior fiscal years), and shall be certified by the Company’s chief financial officer; 
 (ii) as soon as available but in any event within forty-five (45) days after the end of each quarterly accounting period in each fiscal year, unaudited consolidated and consolidating statements of
income or operations, stockholders’ equity (or the equivalent) and cash flows of the Company and its Subsidiaries for such quarterly period and for the period from the beginning of the fiscal year to the end of such quarter, and an unaudited
consolidated and consolidating balance sheet of the Company and its Subsidiaries as of the end of such quarterly period, setting forth for each quarterly accounting period in each fiscal year comparisons to the annual budget and to the corresponding
period in the preceding fiscal year, and all such statements shall be prepared in accordance with GAAP, consistently applied (except for 

  
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the absence of footnotes and subject to changes resulting from normal year-end audit adjustments for recurring accruals of the types included in the audited financial statements of the Company
and its Subsidiaries in prior fiscal years), and shall be certified by the Company’s chief financial officer; 
 (iii) as
soon as available but in any event within ninety (90) days after the end of each fiscal year, audited consolidated and consolidating statements of income or operations, stockholders’ equity (or the equivalent) and cash flows of the Company
and its Subsidiaries for such fiscal year, and a consolidated and consolidating balance sheet of the Company and its Subsidiaries as of the end of such fiscal year, setting forth in each case comparisons to the annual budget and to the preceding
fiscal year, all prepared in accordance with GAAP, consistently applied, and accompanied by (a) an unqualified opinion of a “Big Four” independent accounting firm selected by the Company’s audit committee or another accounting
firm selected by the Company’s audit committee and (b) a copy of such firm’s annual management letter to the Company’s audit committee; 
 (iv) promptly upon receipt thereof, any additional reports, management letters or other detailed information concerning significant aspects of the Company’s or any of its Subsidiaries’
operations or financial affairs given to the Company or any of its Subsidiaries by their independent accountants (and not otherwise contained in other materials provided hereunder or received by the Board); 

(v) at least thirty (30) days but no more than sixty (60) days prior to the beginning of each fiscal year after 2011, an annual
budget and operating plan (as approved by the Board and the Majority WCP Investors) prepared on a monthly basis for the Company and its Subsidiaries for such fiscal year (displaying anticipated statements of income and cash flows and balance
sheets), and promptly upon preparation thereof any other significant budgets or operating plans prepared by the Company or any Subsidiary and any revisions of such annual or other budgets or operating plans, and within thirty (30) days after
any monthly period in which there is a material adverse deviation from the annual budget, a certificate explaining the deviation and what actions the Company and/or its Subsidiaries have taken and propose to take with respect thereto; 

(vi) with reasonable promptness, such other information and financial data concerning the Company and its Subsidiaries as any WCP
Investor may reasonably request. 
 Each of the financial statements referred to in Sections 5A(i), 5A(ii) and 5A(iii)
shall be true and correct and present fairly in all material respects the financial condition and operating results of the Company and its Subsidiaries as and to the extent specified above as of the dates and for the periods set forth therein,
subject in the case of unaudited financial statements to changes resulting from normal year-end adjustments for recurring accruals of the types included in audited financial statements from prior fiscal years (none of which would, individually or in
the aggregate, be material) and the absence of footnotes with respect thereto. The provisions of this Section 5A shall cease to be effective so long as the Company is subject to the reporting requirements of the Securities Exchange Act
and remains in compliance with such requirements. 
 5B. Inspection Rights. Subject to the last sentence of this
Section 5B, for so long as the WCP Investors continue to hold at least 17.5% of the outstanding voting securities of the Company (it being understood that, for purposes of this Section 5B, (x) all holdings of Equity
Securities by Persons who are Affiliates of each other shall be aggregated for purposes of meeting any threshold tests under this Agreement and (y) no Management Investor shall be deemed an Affiliate of any WCP Investor), the Company permit any
representatives designated by any WCP Investor, upon reasonable notice and execution of a customary confidentiality agreement and during normal business hours, to (i) visit and inspect any of the properties of the Company and its Subsidiaries,
(ii) examine the corporate, financial 

  
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and other records of the Company and its Subsidiaries and make copies thereof or extracts therefrom, and (iii) consult with the directors, officers, managers, key employees and independent
accountants of the Company and its Subsidiaries concerning the business, affairs, finances and accounts of the Company and its Subsidiaries. The presentation of an executed copy of this Agreement by any WCP Investor to the independent accountants of
the Company or any of its Subsidiaries shall constitute permission to its independent accountants to participate in discussions with any WCP Investors or their respective officers, directors, managers, employees, agents or advisors. 

5C. Negative Covenants. So long as the WCP Investors continue to hold at least 17.5% of the outstanding voting securities of the
Company (it being understood that, for purposes of this Section 5C, (x) all holdings of Equity Securities by Persons who are Affiliates of each other shall be aggregated for purposes of meeting any threshold tests under this
Agreement and (y) no Management Investor shall be deemed an Affiliate of any WCP Investor), the Company shall not (and shall cause each of its Subsidiaries not to), without the prior written consent of the Majority WCP Investors: 

(i) directly or indirectly declare or pay any dividends or make any distributions upon any of its capital stock or other Equity
Securities, except that a Subsidiary of the Company may declare any dividend or make any distribution upon any its capital stock or other Equity Securities to the Company or any other Subsidiary of the Company; 

(ii) directly or indirectly (a) redeem, repurchase or otherwise acquire, or permit any of its Subsidiaries to redeem, purchase or
otherwise acquire, any of the Company’s capital stock or other Equity Securities of the Company, or assign or transfer any rights or options to make any such redemption, repurchase or other acquisition, or (b) redeem, repurchase or make
any payments with respect to any stock appreciation rights, phantom stock plans or similar rights or plans of the Company, or permit any of its Subsidiaries to so redeem, repurchase or make such payments with respect to any stock appreciation
rights, phantom stock plans or similar rights or plans of the Company, or assign or transfer any rights or options to make such redemption, repurchase or payment with respect to any stock appreciation rights, phantom stock plans or similar rights or
plans of the Company, except, in each case, in connection with the “cashless” or “net” exercise of stock options as contemplated by Section 6.4(d) of the Company’s 2011 Incentive Compensation Plan; 

(iii) authorize, issue or enter into any agreement providing for the issuance (contingent or otherwise) of (a) any notes or debt
securities (other than intercompany notes or debt securities) containing equity features (including any notes or debt securities convertible into or exchangeable for capital stock or other Equity Securities, issued in connection with the issuance of
capital stock or other Equity Securities or containing profit participation features), or (b) any capital stock or other Equity Securities (or any securities convertible into or exchangeable or exercisable for any capital stock or other Equity
Securities or containing profit participation features), except that a Subsidiary of the Company may issue Equity Securities to the Company or any other Subsidiary of the Company; 

(iv) make, or permit any Subsidiary to make, any loans or advances to, guarantees for the benefit of, or investments in, any Person,
except for (a) loans or advances to, or guarantees for the benefit of, or investments in, the Company or any other Subsidiary of the Company, (b) reasonable advances to employees in the ordinary course of business (but expressly
prohibiting any loans or the arranging of any loans to or for the benefit of any employees for any purpose), (c) acquisitions permitted pursuant to Section 5C(ix), and (d) investments having a stated maturity no greater than
one year from the date the Company or any Subsidiary makes such investment in (1) obligations of the United States government or any agency thereof or obligations guaranteed by the United States government, (2) certificates of deposit of
commercial banks having combined capital and surplus of at least $50 million or (3) commercial paper with a rating of at least “Prime 1” by Moody’s Investors Service, Inc.; 

  
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 (v) merge or consolidate with any Person or permit any Subsidiary to merge or consolidate
with any Person or consummate, permit or in any manner facilitate a sale of the Company or any of its Subsidiaries or a change in control of the Company or any of its Subsidiaries, except that a Wholly-Owned Subsidiary may merge or consolidate with
any other Wholly-Owned Subsidiary and the Company and each of its Subsidiaries may consummate any sale, lease, license or disposition permitted by Section 5C(vii)(a); 

(vi) make or fail to make, or permit any Subsidiary to make or fail to make, any capital expenditures (including payments with respect to
capitalized leases, as determined in accordance with GAAP consistently applied), which capital expenditures made or failed to have been made (a) would deviate from the annual budget in any material respect or (b) would exceed $4,000,000
individually or $10,000,000 in the aggregate in any twelve-month period; 
 (vii) sell, lease, license or otherwise dispose of,
or permit any Subsidiary to sell, lease, license or otherwise dispose of, any assets (whether tangible or intangible and including the capital stock or other Equity Securities of any of its Subsidiaries), other than (a) sales, leases, licenses
or dispositions to the Company or any of its Subsidiaries and (b) sales of inventory in the ordinary course of business and other sales of assets in the ordinary course of business where the aggregate consideration (including the assumption of
liabilities, whether direct or indirect) does not exceed 25% of the consolidated assets of the Company and its Subsidiaries (computed on the basis of book value or fair market value) as of the date hereof; 

(viii) liquidate, dissolve or wind up the Company or any of its Subsidiaries or effect a recapitalization, reclassification or
reorganization or change in the form of organization in any form of transaction (including the formation of a parent holding company for the Company, the conversion of the Company or any of its Subsidiaries into a partnership or limited liability
company or a transaction to change the domicile of the Company or any of its Subsidiaries) or amend, supplement, modify, alter, repeal, terminate or waive any provision of the Governing Documents of the Company or any of its Subsidiaries, or file
any resolution with any Secretary of State; 
 (ix) acquire, or permit any Subsidiary to acquire, any interest in any company or
business (whether by a purchase of assets, purchase of stock or other equity interests, merger or otherwise), except any such acquisitions where the aggregate consideration payable by the Company and its Subsidiaries (including the assumption of
liabilities, whether direct or indirect) does not exceed $10,000,000 in the aggregate for all such acquisitions, or enter into, or permit any Subsidiary to enter into, any joint venture; 

(x) materially change, or cause or allow any Subsidiary to materially change, the business activities of the Company or any of its
Subsidiaries as currently conducted, or enter into, or permit any Subsidiary to enter into, the ownership, active management or operation of any business that is not related to the current business activities of the Company or any of its
Subsidiaries; 
 (xi) enter into, amend, modify or supplement, or waive any provisions of, or permit any Subsidiary to enter
into, amend, modify or supplement, or waive any provisions of, any agreement, transaction, commitment or arrangement with any of its or any of its Subsidiaries’ or any of its Affiliates’ direct or indirect officers, managers, directors,
key employees, members, partners, stockholders or Affiliates or with any Person related by blood, marriage or adoption to any such Person or any entity in which any of the foregoing owns a beneficial interest, except for entering into customary
employment arrangements (but not employment agreements) and benefit programs, in each case on reasonable terms as approved by the Board and, if applicable, subject to Section 5C(iii); 

  
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 (xii) create, incur, assume or suffer to exist, or permit any of its Subsidiaries to create,
incur, assume or suffer to exist, any Indebtedness exceeding an aggregate principal amount of $10,000,000 outstanding at any time on a consolidated basis (other than intercompany Indebtedness), or amend, modify, supplement or waive any provision of
the documents, agreements or instruments evidencing, securing or otherwise pertaining to any existing Indebtedness of the Company or any of its Subsidiaries (other than intercompany Indebtedness), refinance, substitute or replace any existing
Indebtedness of the Company or any of its Subsidiaries (other than intercompany Indebtedness), or otherwise take any action with respect to any existing Indebtedness of the Company or any of its Subsidiaries (other than intercompany Indebtedness)
that would reasonably be expected to result in an adverse economic consequence or tax liability to the WCP Investors; or 

(xiii) make an assignment for the benefit of creditors or admit in writing its inability to pay its debts generally as they become due,
file a voluntary bankruptcy or similar proceeding or fail to contest any bankruptcy, insolvency or similar proceeding filed against the Company or any of its Subsidiaries. 
 Notwithstanding anything to the contrary contained herein, for so long as Section 8.09 of the Credit Agreement remains binding on the Company or any of its Subsidiaries, in no event shall this
Agreement encumber or restrict the Company or any of its Subsidiaries from (i) pledging its property pursuant to the Loan Documents (as defined in the Credit Agreement) or any renewals, replacements, exchanges, refundings, or extensions
thereof, (ii) acting as a Loan Party (as defined in the Credit Agreement) pursuant to the Loan Documents (as defined in the Credit Agreement) or any renewals, replacements, exchanges, refundings, or extensions thereof, (iii) making any
Restricted Payment (as defined in the Credit Agreement) to a Loan Party (as defined in the Credit Agreement), (iv) pay any Indebtedness (as defined in the Credit Agreement) or obligation to a Loan Party (as defined in the Credit Agreement),
(v) make loans or advances to any Loan Party (as defined in the Credit Agreement) or (vi) transfer any of its property to any Loan Party (as defined in the Credit Agreement). For the avoidance of doubt, this paragraph shall terminate and
be of no further force or effect from and after such time as Section 8.09 of the Credit Agreement is no longer binding on the Company or any of its Subsidiaries. 
 Notwithstanding anything to the contrary contained herein, for so long as Section 4.08 of the Indenture remains binding on the Company or any of its Subsidiaries, in no event shall this Agreement
encumber or restrict the ability of any Restricted Subsidiary (as defined in the Indenture) to (i) pay dividends or make any other distributions on its Capital Stock (as defined in the Indenture) to the Company or any of its Restricted
Subsidiaries (as defined in the Indenture), or with respect to any other interest or participation in, or measured by, its profits, or pay any Indebtedness (as defined in the Indenture) owed to the Company or any of its Restricted Subsidiaries (as
defined in the Indenture), (ii) make loans or advances to the Company or any of its Restricted Subsidiaries (as defined in the Indenture) or (iii) sell, lease or transfer any of its properties or assets to the Company or any of its
Restricted Subsidiaries (as defined in the Indenture). 
 5D. Affirmative Covenants. So long as the WCP Investors
continue to hold at least 17.5% of the outstanding voting securities of the Company (it being understood that, for purposes of this Section 5D, (x) all holdings of Equity Securities by Persons who are Affiliates of each other shall
be aggregated for purposes of meeting any threshold tests under this Agreement and (y) no Management Investor shall be deemed an Affiliate of any WCP Investor), the Company shall (and shall cause each of its Subsidiaries to), unless it has
received the prior written consent of the Majority WCP Investors: 
 (i) maintain and keep its material tangible properties in
good repair, working order and condition, and from time to time make all reasonable repairs, renewals and replacements, so that its businesses may be properly conducted in all material respects at all times; 

  
 - 10 -

 (ii) maintain all material Intellectual Property Rights necessary to the conduct of its
business and enter into and maintain agreements providing for confidentiality, the assignment of Intellectual Property Rights to the Company, and other protection for proprietary information with all employees of the Company or any of its
Subsidiaries in a form reasonably acceptable to the Majority WCP Investors; 
 (iii) comply in all material respects with all
applicable laws, rules and regulations of all Governmental Entities and all other obligations which it incurs pursuant to any material agreement as such obligations become due, unless and to the extent that the same are being contested in good faith
and by appropriate proceedings and adequate reserves (as determined in accordance with GAAP consistently applied) have been established on its books with respect thereto; 
 (iv) cause to be done all things reasonably necessary to maintain, preserve and renew all licenses, permits and other approvals currently held by the Company or any of its Subsidiaries or necessary for
the conduct of their businesses or the consummation of the transactions contemplated by the Merger Agreement; 
 (v) pay and
discharge when payable all material taxes, assessments and governmental charges imposed upon its properties or upon the income or profits therefrom (in each case before the same becomes delinquent and before penalties accrue thereon), unless and to
the extent that the same are being contested in good faith and by appropriate proceedings and adequate reserves (as determined in accordance with GAAP consistently applied) have been established on its books with respect thereto; 

(vi) use commercially reasonable efforts to continue in force with one or more responsible insurance companies adequate insurance
covering risks of such types and in such amounts as are customary for companies of similar size engaged in similar lines of business and directors’ and officers’ liability insurance reasonably satisfactory to the Majority WCP Investors
(and not borrow against, assign, modify, cancel or surrender any such policy); and 
 (vii) maintain proper books of record and
account which present fairly in all material respects its financial condition and results of operations and make provisions on its financial statements for all such proper reserves as in each case are required in accordance with GAAP, consistently
applied. 
 5E. Company Name. For a period of two (2) years following the effective time of the Merger, the Company
will file a “dba” in Delaware and such other jurisdictions as it deems necessary to enable it to conduct business as “Pioneer Behavioral Health,” and the Company shall conduct business under such dba, including by using corporate
stationary bearing such name and by answering the telephone in the corporate offices under such name. The Company anticipates that each of the subsidiaries of the surviving company in the Merger will retain their current names from and after the
effective time of the Merger. 
 Section 6. Definitions. For the purposes of this Agreement, the following terms
have the meanings set forth below: 
 “Affiliate” of any particular Person means any other Person controlling,
controlled by or under common control with such particular Person, where “control” means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting
securities, contract or otherwise, and such “control” will be conclusively presumed if any Person owns ten percent (10%) or more of the voting capital stock or other ownership interests, directly or indirectly, of any other Person.

  
 - 11 -

 “Certificate of Incorporation” means the Amended and Restated Certificate
of Incorporation of Acadia Healthcare Company, Inc., a Delaware corporation, as amended and in effect from time to time in accordance with its terms, applicable law and this Agreement. 

“Common Stock” means the Company’s common stock, par value $0.01 per share. 

“Credit Agreement” means that certain Credit Agreement, dated as of April 1, 2011, by and among Acadia Healthcare
Company, Inc. (f/k/a Acadia Healthcare Company, LLC), the guarantors identified therein, the lenders identified therein and Bank of America, N.A. in its capacity as the Administrative Agent, as amended, modified, or supplemented from time to time.

 “Equity Securities” means any (i) capital stock (including the Common Stock) of, or membership,
partnership or other equity interests in, the Company or any of its Subsidiaries, (ii) obligations, evidences of indebtedness or other debt or equity securities or interests convertible or exchangeable into such capital stock of or other equity
interests in the Company or any of its Subsidiaries and (iii) warrants, options or other rights to purchase or otherwise acquire such capital stock of or other equity interests in the Company or any of its Subsidiaries. 

“Family Group” means, as to any particular Person, (i) such Person’s spouse and descendants (whether natural
or adopted), (ii) any trust solely for the benefit of such Person and/or such Person’s spouse and/or descendants, and (iii) any partnerships, corporations or limited liability companies where the only partners, stockholders or members
are such Person and/or such Person’s spouse, descendants and/or trusts referred to in clause (ii) of this definition. 

“Governing Documents” means, with respect to any Person, its certificate of incorporation or bylaws, its certificate of
formation and limited liability company agreement or limited partnership agreement or similar governing documents. 

“Governmental Entity” means (i) any federal, state, local, municipal, foreign or other government; (ii) any
governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, entity or self-regulatory organization and any court, arbitration body or other tribunal); (iii) any body exercising,
or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature, including any arbitral tribunal; or (iv) any agency, authority, board, bureau, commission,
department, office or instrumentality of any nature whatsoever of any federal, state, province, local, municipal or foreign government or other political subdivision or otherwise, or any officer or official thereof with requisite authority.

 “Indebtedness” means, with respect to the Company and its Subsidiaries at any date, without duplication:
(i) all obligations of such Persons for borrowed money or in respect of loans or advances, whether current, short-term or long-term, secured or unsecured, (ii) all obligations of such Persons evidenced by bonds, debentures, notes or other
similar instruments or debt securities (including any seller notes relating to prior acquisitions), (iii) any commitment by which any such Person assures a creditor against loss (including contingent reimbursement obligations with respect to
letters of credit and bankers’ acceptances), (iv) all obligations arising from cash/book overdrafts, (v) all obligations of such Persons secured by a Lien, (vi) all guarantees of the Company and its Subsidiaries of the
obligations of another Person (including guarantees in the form of an agreement to repurchase or reimburse), (vii) all capital lease obligations, (viii) all indebtedness for the deferred purchase price of property or services with respect
to which such a Person is liable, contingently or otherwise, as obligor or otherwise (including with respect to any earnout or similar payments), (ix) all liabilities of the Company classified as non-current liabilities in accordance with GAAP,
(x) all deferred compensation obligations that are owed or 

  
 - 12 -

 
that are not cancelable by unilateral action of the Company or a Subsidiary and may become owing, (xi) all obligations that are owed or that are not cancelable by unilateral action of the
Company and may become owing under agreements or arrangements existing as of the Closing in consideration for non-competition, non-solicitation, consulting, intellectual property assignment or protection, or information confidentiality obligations
of any current or former employee, consultant, agent, officer, director, contractor or other service provider of or to the Company, (xii) all deferred rent obligations, (vi) all guarantees of any such Person in connection with any of the
foregoing and any other indebtedness guaranteed in any manner by a Person (including guarantees in the form of an agreement to repurchase or reimburse), and (xiii) all accrued interest, prepayment premiums or penalties related to any of the
foregoing. 
 “Indenture” means that certain Indenture, dated as of November [1], 2011, by and among Acadia
Healthcare Company, Inc., the guarantors identified therein, and U.S. Bank National Association, as trustee, as amended, modified or supplemented from time to time. 
 “Intellectual Property Rights” means any and all of the following rights to the extent recognized in any jurisdiction throughout the world, and all corresponding proprietary
rights: (i) all inventions (whether or not patentable or reduced to practice), all improvements thereto, and all patents and industrial designs (including utility model rights, design rights and industrial property rights), patent and
industrial design applications, and patent disclosure statements, together with all reissues, continuations, continuations-in-part, revisions, divisionals, extensions, and reexaminations in connection therewith; (ii) all trademarks, service
marks, designs, trade dress, logos, slogans, trade names, business names, corporate names, Internet domain names, and all other indicia of origin, all applications, registrations, and renewals in connection therewith, and all goodwill associated
with any of the foregoing; (iii) all works of authorship (whether or not copyrightable), copyrights, mask works, database rights and moral rights, and all applications, registrations, and renewals in connection therewith; (iv) all trade
secrets, know-how, technologies, processes, techniques, protocols, methods, formulae, product specifications, data, algorithms, compositions, industrial models, architectures, layouts, designs, drawings, plans, specifications, methodologies, ideas,
research and development, and confidential information (including technical data, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals); (v) all rights of privacy and publicity, including
rights to the use of names, likenesses, images, voices, signatures and biographical information of real persons; (vi) all proprietary rights in software; and (vii) all other registrations, issuances, and certificates associated with any of
the foregoing proprietary rights. “Majority WCP Investors” means, as of the date of any determination, the WCP Investors holding a majority of the outstanding shares of Common Stock held by all WCP Investors as of such date.

 “Permitted Transferee” means, with respect to any Management Investor, such Management Investor’s
spouse and descendants (whether natural or adopted) and any trust solely for the benefit of such Management Investor and/or such Management Investor’s spouse and/or descendants. 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization and a Governmental Entity. 
 “Public
Offering” means any offering by the Company of its capital stock or other Equity Securities to the public pursuant to an effective registration statement under the Securities Act or any comparable statement under any similar federal statute
then in force. 

  
 - 13 -

 “Restricted Shares” means, with respect to any Management Investor, as of
the date of any determination, all Subject Shares held by such Management Investor that are not Unrestricted Shares as of such date. 
 “Securities Act” means the Securities Act of 1933, as amended. 

“Securities Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Stockholder Shares” means (i) any shares of Common Stock or other Equity Securities from time to time purchased or
otherwise acquired or held by any Stockholder, (ii) any Common Stock or other Equity Securities from time to time issued or issuable directly or indirectly upon the conversion, exercise or exchange of any securities purchased or otherwise
acquired by any Stockholder (excluding options to purchase Common Stock granted by the Company unless and until such options are exercised), and (iii) any other capital stock or other Equity Securities from time to time issued or issuable
directly or indirectly with respect to the securities referred to in clauses (i) or (ii) above by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other
reorganization. 
 “Subject Shares” means, with respect to any Management Investor, all Stockholder Shares
purchased or otherwise acquired or held by such Management Investor other than (i) any Stockholder Shares received by such Management Investor as consideration in the Merger, and (ii) any Stockholder Shares purchased or otherwise acquired
by such Management Investor after the effective time of the Merger (which, for purposes of clarity, shall not include any Stockholder Shares received by such Management Investor in the Distribution or otherwise in connection with the liquidation and
dissolution of Holdings). 
 “Subsidiary” means, with respect to any Person, any corporation, limited liability
company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of
directors or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association or
other business entity, a majority of the limited liability company, partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a
combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a
majority of the limited liability company, partnership, association or other business entity gains or losses or shall be or control the managing member, general partner or managing director of such limited liability company, partnership, association
or other business entity. 
 “Transfer” means any sale, transfer, assignment, pledge, mortgage, exchange,
hypothecation, grant of a security interest or other direct or indirect disposition or encumbrance of an interest, whether with or without consideration and whether voluntarily or involuntarily or by operation of law. The terms
“Transferee,” “Transferred,” and other forms of the word “Transfer” shall have correlative meanings. For the avoidance of doubt, a Transfer of any interest in a trust or other entity shall be deemed
a Transfer of Units for purposes of this Agreement. 
 “Unrestricted Shares” means, with respect to any
Management Investor, as of the date of any determination, a number of such Management Investor’s Subject Shares determined by multiplying (x) the total number of Subject Shares held by such Management Investor as of the date of this
Agreement (as appropriately adjusted for stock splits, stock dividends, stock combinations, recapitalizations and the 

  
 - 14 -

 
like), by (y) the result of 100% minus the WCP Liquidity Percentage; provided, that (i) from and after the third anniversary of the date hereof, no fewer than 33%
of the Subject Shares held by such Management Investor as of the date of this Agreement shall be Unrestricted Shares, (ii) from and after the fourth anniversary of the date hereof, no fewer than 67% of the Subject Shares held by such Management
Investor as of the date of this Agreement shall be Unrestricted Shares, and (iii) from and after the fifth anniversary of the date hereof, 100% of such Management Investor’s Subject Shares shall be Unrestricted Shares. 

“WCP Equity” means (i) the Common Stock held by the WCP Investors on the date of this Agreement and any other
Stockholder Shares from time to time issued to or otherwise acquired by the WCP Investors (other than pursuant to purchases made on the open market and not in connection with any private placement by the Company), and (ii) any securities issued
with respect to the securities referred to in clause (i) above by way of a stock split, stock dividend, or other division of securities, or in connection with a combination of securities, recapitalization, merger, consolidation, or other
reorganization. As to any particular securities constituting WCP Equity, such securities shall cease to be WCP Equity when they have been (A) effectively registered under the Securities Act and disposed of for cash in accordance with the
registration statement covering them, (B) purchased or otherwise acquired for cash by any Person other than a WCP Investor, or (C) redeemed or repurchased for cash by the Company or any of its Subsidiaries or any designee thereof.

 “WCP Liquidity Percentage” means, as of any date of determination, the percentage obtained by
dividing (i) the total number of Stockholder Shares constituting WCP Equity as of the date of such determination, by (ii) the total number of Stockholder Shares constituting WCP Equity as of the date of this Agreement (as
appropriately adjusted for stock splits, stock dividends, stock combinations, recapitalizations and the like). 
 “WCP
Investors” means, collectively, the Persons listed on the Schedule of WCP Investors attached hereto. 

“Wholly-Owned Subsidiary” means, with respect to any Person, a Subsidiary of which all of the outstanding capital stock
or other Equity Securities are owned by such Person or another Wholly-Owned Subsidiary of such Person. 
 Section 7.
Miscellaneous. 
 7A. Expenses. The Company shall pay, and hold each WCP Investor harmless against liability for
the payment of (i) the out-of-pocket fees and expenses of such Persons (including the fees and expenses of legal counsel or other third party advisors) arising in connection with (a) any completed or proposed financing, public offering,
reorganization, acquisition, merger, sale, recapitalization or similar transaction involving the Company or any of its Subsidiaries or the rendering of any other services by such Persons or their respective Affiliates to the Company or any of its
Subsidiaries or (b) any amendments or waivers (whether or not the same become effective) under or in respect of this Agreement, the Merger Agreement or the other agreements contemplated hereby or thereby (including in connection with any
completed or proposed financing, public offering, reorganization, acquisition, merger, sale or recapitalization or similar transaction by or involving the Company or any of its Subsidiaries), or (c) the interpretation, investigation and
enforcement of the rights granted under this Agreement, the Merger Agreement or the other agreements contemplated hereby or thereby, (ii) stamp and other similar taxes which may be payable in respect of the execution and delivery of this
Agreement, the Merger Agreement or the other agreements contemplated hereby or thereby or the issuance, delivery or acquisition of any shares of capital stock or other Equity Securities, (iii) the reasonable fees and expenses incurred by each
such Person in any filing with any Governmental Entity with respect to its 

  
 - 15 -

 
investment in the Company (including in connection with any transaction contemplated by clause (i)(a) above) or in any other filing with any Governmental Entity with respect to the Company or any
of its Subsidiaries which mentions such Person, or (iv) all reasonable travel expenses, legal fees and other fees and expenses as have been or may be incurred in connection with any Company-related financing or in connection with the rendering
of any other services by such Person or its Affiliates to the Company and its Subsidiaries (including reasonable fees and expenses incurred in attending meetings of the Board or committees thereof or other Company-related meetings). In addition, the
Company shall pay, and hold each Management Investor harmless against liability for the payment of (A) the reasonable out-of-pocket fees and expenses of such Management Investor (including the fees and expenses of legal counsel) arising in
connection with any amendments or waivers (whether or not the same become effective) under or in respect of this Agreement, the Merger Agreement or the other agreements contemplated hereby or thereby, (B) stamp and other similar taxes which may
be payable in respect of the execution and delivery of this Agreement, the Merger Agreement or the other agreements contemplated hereby or thereby or the issuance, delivery or acquisition of any shares of capital stock or other Equity Securities, or
(C) the reasonable fees and expenses incurred by each such Person in any filing with any Governmental Entity with respect to its investment in the Company (including in connection with any transaction contemplated by clause (i)(a) above) or in
any other filing with any Governmental Entity with respect to the Company or any of its Subsidiaries which mentions such Person. In the event that any Management Investor is the prevailing party in any dispute arising in connection with the
interpretation, investigation and enforcement of the rights granted under this Agreement, the Merger Agreement or the other agreements contemplated hereby or thereby, such Management Investor shall be entitled to, and the Company shall pay to such
Management Investor, the costs and expenses (including the fees and expenses of legal counsel) incurred by such Management Investor in connection with enforcing its rights or defending claims hereunder. 

7B. Remedies. Each WCP Investor and each Management Investor shall have all rights and remedies set forth in this Agreement, the
Certificate of Incorporation and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which such holders have under applicable law. Any Person having any rights under
any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted
by law. The parties hereto agree and acknowledge that the WCP Investors and the Management Investors would be irreparably harmed by, and money damages would not be an adequate remedy for, any breach of the provisions of this Agreement and that, in
addition to any other rights and remedies existing in its favor, any party shall be entitled to specific performance and/or other injunctive relief from any court of law or equity of competent jurisdiction (without posting any bond or other
security) in order to enforce or prevent violation of the provisions of this Agreement. 
 7C. Consent to Amendments.
Except as otherwise expressly provided herein, the provisions of this Agreement may be amended, and the Company may take any action herein prohibited, or fail to perform any act herein required to be performed by it, only if the Company has obtained
the prior written consent of the Majority WCP Investors; provided, that, if any such amendment would further limit the rights in any material respect or expand the obligations in any material respect of the Management Investors hereunder,
then such amendment shall also require the prior written consent of Joey Jacobs or his designee, as representative of the Management Investors. No course of dealing between or among the Company, any WCP Investor or any other holder of Equity
Securities (including the failure of any such Person to enforce any of the provisions of this Agreement) shall be deemed effective to modify, amend, waive or discharge any part of this Agreement or any rights or obligations of any party hereto under
or by reason of this Agreement, and the failure of any party hereto to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce
each and every provision of this Agreement in accordance with its terms. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any preceding or succeeding breach.

  
 - 16 -

 7D. Successors and Assigns. Except as otherwise expressly provided herein, all
covenants and agreements contained in this Agreement by or on behalf of any of the Parties shall bind and inure to the benefit of the respective successors and assigns of the Parties whether so expressed or not. In addition, and whether or not any
express assignment has been made, the provisions of this Agreement which are for any WCP Investor’s benefit as a WCP Investor are also for the benefit of, and enforceable by, any subsequent holder of such WCP Investor’s Stockholder Shares.
Notwithstanding anything herein to the contrary, the provisions of Section 1 and Section 5E are for the benefit of, and shall be enforceable in accordance with their terms by, Bruce A. Shear. 

7E. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Agreement or the application of any such provision to any Person or circumstance is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only in such
jurisdiction where so found and only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement in such jurisdiction or any provision of this Agreement in any other jurisdiction. 

7F. Counterparts. This Agreement may be executed simultaneously in two or more counterparts (including by means of facsimile or
electronic transmission in portable document format (pdf)), any one of which need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same Agreement. 

7G. Descriptive Headings; Interpretation. The headings and captions used in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement. The use of the phrase “ordinary course of business” shall mean “ordinary course of business consistent with past practice, including with respect to
frequency and quantity.” The use of the word “including” herein shall mean “including without limitation.” Any reference to the masculine, feminine or neuter gender shall be deemed to include any gender or all three as
appropriate. 
 7H. Governing Law. The corporate law of the State of Delaware shall govern all issues and questions
concerning the relative rights and obligations of the Company and its stockholders. All other issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement and the exhibits and schedules hereto shall be
governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Delaware. 
 7I. Notices. All notices, demands or
other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given only (i) when delivered personally to the recipient, (ii) one (1) business
day after being sent to the recipient by reputable overnight courier service (charges prepaid) provided that confirmation of delivery is received, (iii) upon machine-generated acknowledgment of receipt after transmittal by facsimile (provided
that a confirmation copy is sent via reputable overnight courier service for delivery within two (2) business days thereafter), or (iv) five (5) business days after being mailed to the recipient by certified or registered mail (return
receipt requested and postage prepaid). Such notices, demands and other communications shall be sent to the WCP Investors at the addresses set forth on the Schedule of WCP Investors attached hereto, to the Management Investors at the
addresses set forth on the Schedule of Management Investors attached hereto and to the Company at the addresses indicated below: 
 Notices to the Company: 
 Acadia Healthcare Company, Inc.

 725 Cool Springs Blvd., Suite 600 

Franklin, Tennessee 37067 
 Attention:        Chief Executive Officer 
 Facsimile:        615-732-6315 

  
 - 17 -

 or to such other address or to the attention of such other person as the recipient party has specified by
prior written notice to the sending party. 
 7J. No Strict Construction. The Parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring
or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. The Parties intend that each covenant and agreement contained herein shall have independent significance. If any party has breached any covenant or
agreement contained herein in any respect, the fact that there exists another covenant or agreement relating to the same subject matter (regardless of the relative levels of specificity) which such party has not breached shall not detract from or
mitigate the fact that such party is in breach of the first covenant or agreement. 
 7K. Complete Agreement. This
Agreement and the other agreements and instruments referred to herein contain the complete agreement between the Parties with respect to the subject matter hereof and thereof and supersede any prior understandings, agreements and representations by
or between the Parties (whether written or oral) which may have related to the subject matter hereof or thereof in any way. 

*    *    *    *    * 

  
 - 18 -

 IN WITNESS WHEREOF, the Parties have executed or caused to be executed on their behalf this
Stockholders Agreement as of the date first written above. 
  

			
	COMPANY
	
	ACADIA HEALTHCARE COMPANY, INC.

		
	By:	 	
 

			
	Name:	 	
 

			
	Its:	 	
 

			
	
	WCP INVESTORS
	
	WAUD CAPITAL PARTNERS II, L.P.

	
	By: Waud Capital Partners Management II, L.P.
	Its: General Partner
	
	By: Waud Capital Partners II, L.L.C.
	Its: General Partner
		
	By:	 	  

	Name: Reeve B. Waud
	Its: Authorized Signatory
	
	WAUD CAPITAL PARTNERS QP II, L.P.
	
	By: Waud Capital Partners Management II, L.P.
	Its: General Partner
	
	By: Waud Capital Partners II, L.L.C.
	Its: General Partner
		
	By:	 	  

	Name: Reeve B. Waud
	Its: Authorized Signatory

 IN WITNESS WHEREOF, the Parties have executed or caused to be executed on their behalf this
Stockholders Agreement as of the date first written above. 
  

			
	WCP INVESTORS
	
	WCP FIF II (ACADIA), L.P.
	
	By: Waud Capital Partners Management II, L.P.
	Its: General Partner
	
	By: Waud Capital Partners II, L.L.C.
	Its: General Partner

			
		
	By:	 	 /s/ Reeve B. Waud

	Name: Reeve B. Waud
	Its: Authorized Signatory
	
	WAUD CAPITAL PARTNERS III, L.P.
	
	By: Waud Capital Partners Management III, L.P.
	Its: General Partner
	
	By: Waud Capital Partners III, L.L.C.
	Its: General Partner

			
		
	By:	 	 /s/ Reeve B. Waud

	Name: Reeve B. Waud
	Its: Authorized Signatory
	
	WAUD CAPITAL PARTNERS QP III, L.P.
	
	By: Waud Capital Partners Management III, L.P.
	Its: General Partner
	
	By: Waud Capital Partners III, L.L.C.
	Its: General Partner

			
		
	By:	 	 /s/ Reeve B. Waud

	Name: Reeve B. Waud
	Its: Authorized Signatory

 IN WITNESS WHEREOF, the Parties have executed or caused to be executed on their behalf this
Stockholders Agreement as of the date first written above. 
  

			
	WCP FIF III (ACADIA), L.P.
	
	By: Waud Capital Partners Management III, L.P.
	Its: General Partner
	
	By: Waud Capital Partners III, L.L.C.
	Its: General Partner
		
	By:	 	 /s/ Reeve B. Waud

	Name: Reeve B. Waud
	Its: Authorized Signatory
	
	WAUD CAPITAL AFFILIATES II, L.L.C.
		
	By:	 	 /s/ Reeve B. Waud

	Name: Reeve B. Waud
	Its: Authorized Signatory
	
	WAUD CAPITAL AFFILIATES III, L.L.C.
		
	By:	 	 /s/ Reeve B. Waud

	Name: Reeve B. Waud
	Its: Authorized Signatory
	
	WAUD FAMILY PARTNERS, L.P.
		
	By:	 	 /s/ Reeve B. Waud

	Name: Reeve B. Waud
	Its: General Partner
	
	REEVE B. WAUD 2011 FAMILY TRUST
		
	By:	 	 /s/ Cornelius B. Waud

	Name: Cornelius B. Waud
	Its: Trustee

 IN WITNESS WHEREOF, the Parties have executed or caused to be executed on their behalf this
Stockholders Agreement as of the date first written above. 
  

	
	MANAGEMENT INVESTORS:
	
	 /s/ Danny Carpenter

	Name: Danny Carpenter
	
	 /s/ Norman K. Carter, III

	 Name: Norman K. Carter, III

	
	 /s/ Fred T. Dodd

	 Name: Fred T. Dodd

	
	 /s/ Christopher L. Howard

	 Name: Christopher L. Howard

	
	 /s/ Jack E. Polson

	 Name: Jack E. Polson

	
	 /s/ Karen Prince

	 Name: Karen Prince

	
	 /s/ Robert Swinson

	 Name: Robert Swinson

	
	 /s/ Randall Goldberg

	Name: Randall Goldberg

 IN WITNESS WHEREOF, the Parties have executed or caused to be executed on their behalf this
Stockholders Agreement as of the date first written above. 
  

			
	MANAGEMENT INVESTORS:
	
	 JOEY A. JACOBS 2011 GRANTOR
 RETAINED ANNUITY TRUST (ACADIA)

		
	By:	 	 /s/ Joey A. Jacobs

	Name: Joey A. Jacobs
	Its: Trustee
	
	 WILLIAM BRENT TURNER 2011 GRANTOR
 RETAINED ANNUITY TRUST

		
	By:	 	 /s/ William Brent Turner

	Name: William Brent Turner
	Its: Trustee
	
	 RON FINCHER 2011 GRANTOR
 RETAINED ANNUITY TRUST

		
	By:	 	 /s/ Ron Fincher

	Name: Ron Fincher
	Its: Trustee

 IN WITNESS WHEREOF, the Parties have executed or caused to be executed on their behalf this
Stockholders Agreement as of the date first written above. 
  

	
	MANAGEMENT INVESTORS:
	
	 /s/ Joey A. Jacobs

	Name: Joey A. Jacobs
	
	 /s/ William Brent Turner

	Name: William Brent Turner
	
	 /s/ Ron Fincher

	Name: Ron Fincher

 SCHEDULE OF WCP INVESTORS 
 Waud Capital Partners II, L.P. 
 Waud Capital Partners QP II, L.P. 

WCP FIF II (Acadia), L.P. 
 Waud Capital Partners
III, L.P. 
 Waud Capital Partners QP III, L.P. 
 WCP FIF III (Acadia), L.P. 
 Waud Capital Affiliates II, LLC 

Waud Capital Affiliates III, LLC 
 Waud Family
Partners, L.P. 
 Reeve B. Waud 2011 Family Trust 
  

					
	Notice address for the WCP Investors:	  	300 North LaSalle Street, Ste. 4900
		  	Chicago, Illinois 60654
		  	Attention: Reeve B. Waud
		  		  	 Charles E. Edwards
		  	Facsimile: (312) 676-8444

 SCHEDULE OF MANAGEMENT INVESTORS 

Danny Carpenter 
 Norman K. Carter, III

 Fred T. Dodd 
 Christopher L. Howard

 Jack E. Polson 
 Karen Prince

 Robert Swinson 
 Randall Goldberg

 Joey A. Jacobs 2011 Grantor Retained Annuity Trust (Acadia) 
 William Brent Turner 2011 Grantor Retained Annuity Trust 
 Ron Fincher 2011 Grantor Retained
Annuity Trust 
 Joey A. Jacobs 

William Brent Turner 
 Ron Fincher 

 

			
	Notice address for the Management Investors:	 	c/o Acadia Healthcare Company, Inc.
		 	830 Crescent Centre Drive, Suite 610,
		 	Franklin, TN 37067
		 	Attention: Joey Jacobs
		 	Facsimile:   (615) 261-9685EX-10.1

 Exhibit 10.1 
 SECOND AMENDMENT 
 THIS SECOND AMENDMENT (this “Amendment”) dated
as of July 12, 2011 to the Credit Agreement referenced below is by and among Acadia Healthcare Company, Inc. (f/k/a Acadia Healthcare Company, LLC), a Delaware corporation (the “Borrower”), the Guarantors identified on the
signature pages hereto, the Lenders identified on the signature pages hereto and Bank of America, N.A., in its capacity as Administrative Agent (in such capacity, the “Administrative Agent”). 

W I T N E S S E T H 
 WHEREAS, revolving credit and term loan facilities have been extended to the Borrower pursuant to the Credit Agreement (as amended, modified, supplemented, increased and extended from time to time, the
“Credit Agreement”) dated as of April 1, 2011 among the Borrower, the Guarantors identified therein, the Lenders identified therein and the Administrative Agent; 

WHEREAS, the Borrower has requested certain modifications to the Credit Agreement; and 

WHEREAS, the Required Lenders and the Required Revolving Lenders have agreed to the requested modifications to the Credit Agreement on
the terms and conditions set forth herein. 
 NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1.
Defined Terms. Capitalized terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the Credit Agreement. 
 2. Amendments. The Credit Agreement is amended as follows: 
  

	 	3.1	In Section 1.01 the following definitions are inserted in alphabetical order: 

“Bridge Senior Unsecured Indebtedness” has the meaning specified in Section 8.03(m). If any Indebtedness
constitutes Bridge Senior Unsecured Indebtedness and Permanent Senior Unsecured Indebtedness, then such Indebtedness shall be deemed Permanent Senior Unsecured Indebtedness; provided that, notwithstanding the foregoing, any rollover loan or
exchange notes issued in exchange of Bridge Senior Unsecured Indebtedness shall constitute Bridge Senior Unsecured Indebtedness. 

“Consolidated Senior Secured Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated
Funded Indebtedness (other than Funded Indebtedness that is not secured by a Lien on any property of the Borrower or any Subsidiary) as of such date to (b) Consolidated EBITDA for the period of the four fiscal quarters most recently ended.

 “Deficiency Note” has the meaning specified in Section 8.03(m). 

“Interest Rate Cap” means the “Interest Rate Cap” for the “”Bridge Loan Facility” as defined in
Section 3 of the redacted copy of the Fee Letter dated May 23, 2011 between Jefferies Finance LLC and the Borrower delivered to the Administrative Agent on July 11, 2011 and without giving effect to any amendment or other modification
thereto. 

 “Management Services Termination Fees” means the fees payable to the
Sponsor pursuant to the Management Services Termination Agreement. 
 “Permanent Senior Unsecured Indebtedness”
has the meaning specified in Section 8.03(m). 
 “Permitted Share Repurchase” has the meaning
specified in Section 8.06(f). 
 “PHC” means PHC, Inc., a Massachusetts corporation d/b/a Pioneer
Behavioral Health. 
 “PHC Acquisition” means the merger of PHC into a Wholly Owned Subsidiary of the Borrower
(with such Wholly Owned Subsidiary of the Borrower being the surviving entity) pursuant to the PHC Acquisition Documents. 

“PHC Acquisition Agreement” means the Agreement and Plan of Merger dated May 23, 2011 between the Borrower and PHC.

 “PHC Acquisition Documents” means the PHC Acquisition Agreement (including the disclosure schedules thereto)
and all other documents, agreements and instruments entered into in connection with the PHC Acquisition. 
 “PHC Joint
Ventures” means Seven Hills Psych Center, LLC and Behavioral Health Partners, LLC. 
 “PHC Transaction”
means, collectively, the incurrence of the Senior Unsecured Indebtedness on the Second Amendment Effective Date, the Permitted Share Repurchase, the PHC Acquisition, the incurrence of any Indebtedness on the Second Amendment Effective Date to any
Person who owns Equity Interests of the Parent on the Second Amendment Effective Date and the payment of the Management Services Termination Fees. 
 “Refinancing Costs” means, with respect to the refinancing of any Indebtedness, an amount equal to the premium or other reasonable amount paid, accrued interest (other than the non-cash
portion of the interest rate that accrued to principal) and fees and expenses incurred in connection with such refinancing. 

“Second Amendment Effective Date” means the date on which the conditions precedent to the effectiveness of the Second
Amendment to this Agreement are satisfied or waived in accordance with the terms thereof. 
 “Senior Unsecured
Indebtedness” means the Bridge Senior Unsecured Indebtedness and the Permanent Senior Unsecured Indebtedness. 

“Senior Unsecured Indebtedness Standard Terms” means each of the following: 

(a) such Indebtedness shall not be subject to any scheduled redemptions, scheduled repurchases or other scheduled payments
of principal (other than the scheduled payment of principal on the maturity date of such Indebtedness); 
 (b)
such Indebtedness shall not be subject to any covenants or events of default that are materially more restrictive than covenants and events of default that are 

  
 2 

 
usual and customary for senior unsecured high yield notes giving due regard to prevailing conditions in the syndicated loan and financial markets and operational requirements of the Borrower and
its Subsidiaries (it being understood and agreed that the covenants of the Bridge Senior Unsecured Indebtedness will be incurrence based covenants based on those contained in the preliminary offering memorandum used to market customary senior
unsecured high yield notes), unless approved by the Administrative Agent; and 
 (c) unless such Indebtedness is
traded on a public exchange, such Indebtedness shall not be held by an Affiliate of the Borrower. 
  

	 	3.2	In Section 1.01 the following definitions are amended to read as follows: 

 “Applicable Rate” means the following percentages per annum, based upon the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the
Administrative Agent pursuant to Section 7.02(b): 
  

															
	 Pricing
 Tier
	  	Consolidated Leverage Ratio	  	Eurodollar Rate
Loans	 	 	 Base Rate
 Loans
	 	 	 Commitment
 Fee
	 
	1	  	< 2.75:1.0	  	 	3.50	% 	 	 	2.50	% 	 	 	0.45	% 
	2	  	3 2.75:1.0 but < 3.25:1.0	  	 	3.75	% 	 	 	2.75	% 	 	 	0.50	% 
	3	  	3 3.25:1.0 but < 3.75:1.0	  	 	4.00	% 	 	 	3.00	% 	 	 	0.50	% 
	4	  	3 3.75:1.0 but < 5.00:1.0	  	 	4.25	% 	 	 	3.25	% 	 	 	0.55	% 
	5	  	3 5.00:1.0	  	 	4.50	% 	 	 	3.50	% 	 	 	0.55	% 

 Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Leverage
Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is required to be delivered pursuant to Section 7.02(b); provided, however, that if a Compliance Certificate
is not delivered when due in accordance with such Section, then, upon the request of the Required Lenders, Pricing Tier 5 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been
delivered and shall remain in effect until the first Business Day immediately following the date on which such Compliance Certificate is delivered. The Applicable Rate in effect from the Closing Date through the first Business Day immediately
following the date a Compliance Certificate is required to be delivered pursuant to Section 7.02(b) for the fiscal quarter ending June 30, 2011 shall be determined based upon Pricing Tier 3 and the Applicable Rate in effect from the
Second Amendment Effective Date through the first Business Day immediately following the date a Compliance Certificate is required to be delivered pursuant to Section 7.02(b) for the first fiscal quarter ending after the closing of the
PHC Acquisition shall be determined based upon Pricing Tier 5. Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Rate for any period shall be subject to the provisions of
Section 2.10(b). 
 “Change of Control” means an event or series of events by which: 

(a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, but excluding (i) any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan and (ii) the
Sponsor and its Controlled Investment Affiliates) becomes the “beneficial owner” (as defined in Rules 

  
 3 

 
13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all Equity Interests that such person or group
has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of thirty-five percent (35%) or more of the Equity Interests of the
Borrower entitled to vote for members of the board of directors or equivalent governing body of the Borrower on a fully diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any
option right); or 
 (b) during any period of 24 consecutive months, a majority of the members of the board of
directors or other equivalent governing body of the Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that
board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election
or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent
governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or
threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors); or 

(c) the occurrence of a “Change of Control” (or any comparable term) under, and as defined in, any agreement,
document or instrument governing or otherwise relating to any Senior Unsecured Indebtedness. 
 For purpose of clarification the
consummation of the PHC Transaction shall not constitute a Change of Control hereunder. 
 “Consolidated Fixed Charge
Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated Cash Flow for the period of the four fiscal quarters most recently ended to (b) Consolidated Fixed Charges for the period of the four fiscal
quarters most recently ended; provided that for purposes of calculating the Consolidated Fixed Charge Coverage Ratio: 

(i) as of the end of the fiscal quarter ending June 30, 2011, Consolidated Fixed Charges and Consolidated Cash Flow (other than
Consolidated EBITDA) shall be the actual amount of Consolidated Fixed Charges and the actual amount of Consolidated Cash Flow (other than Consolidated EBITDA) for the period of one fiscal quarter then ended multiplied by four (4); 

(ii) as of the end of the fiscal quarter ending September 30, 2011, Consolidated Fixed Charges and Consolidated Cash Flow (other
than Consolidated EBITDA) shall be the actual amount of Consolidated Fixed Charges and the actual amount of Consolidated Cash Flow (other than Consolidated EBITDA) for the period of two fiscal quarters then ended multiplied by two (2); 

  
 4 

 (iii) as of the end of the fiscal quarter ending December 31, 2011, Consolidated Fixed
Charges and Consolidated Cash Flow (other than Consolidated EBITDA) shall be the actual amount of Consolidated Fixed Charges and the actual amount of Consolidated Cash Flow (other than Consolidated EBITDA) for the period of three fiscal quarters
then ended multiplied by one and one-third (1 1/3); and 
 (iv) as of the end of the fiscal quarter ending March 31, 2011,
Consolidated Fixed Charges and Consolidated Cash Flow shall be the actual amount of Consolidated Fixed Charges and the actual amount of Consolidated Cash Flow for the period of four fiscal quarters then ended; 

provided that, notwithstanding the foregoing, for each of the first four fiscal quarters ending after the Second Amendment
Effective Date, Consolidated Interest Charges (for purposes of calculating Consolidated Fixed Charges) and income taxes paid in cash (for purposes of calculating Consolidated Cash Flow) shall be calculated as follows: 

(A) for the first fiscal quarter ending after the Effective Date (x) the Consolidated Interest Charges related to the Senior
Unsecured Indebtedness incurred on the Effective Date shall be the actual amount of such Consolidated Interest Charges for such fiscal quarter (calculated as if such Senior Unsecured Indebtedness were incurred on the first day of such fiscal
quarter) multiplied by four (4) and (y) income taxes paid in cash shall be the actual amount of income taxes that would have been paid in cash in such fiscal quarter if such Senior Unsecured Indebtedness were incurred on the first day of
such first fiscal quarter multiplied by four (4); 
 (B) for the second fiscal quarter ending after the Effective Date
(x) the Consolidated Interest Charges related to the Senior Unsecured Indebtedness incurred on the Effective Date shall be the actual amount of such Consolidated Interest Charges for the period of two fiscal quarters then ended (calculated as
if such Senior Unsecured Indebtedness were incurred on the first day of the period of two fiscal quarters then ended) multiplied by two (2) and (y) income taxes paid in cash shall be the actual amount of income taxes that would have been
paid in cash in the period of two fiscal quarters then ended if such Senior Unsecured Indebtedness were incurred on the first day of the period of two fiscal quarters then ended by two (2); 

(C) for the third fiscal quarter ending after the Effective Date (x) the Consolidated Interest Charges related to the Senior
Unsecured Indebtedness incurred on the Effective Date shall be the actual amount of such Consolidated Interest Charges for the period of three fiscal quarters then ended (calculated as if such Senior Unsecured Indebtedness were incurred on the first
day of the period of three fiscal quarters then ended) multiplied by one and one-third (1 1/3) and (y) income taxes paid in cash shall be the actual amount of income taxes that would have been paid in cash in the period of three fiscal quarters
then ended if such Senior Unsecured Indebtedness were incurred on the first day of the period of three fiscal quarters then ended by one and one-third (1 1/3); and 

  
 5 

 (D) for the fourth fiscal quarter ending after the Effective Date (x) the Consolidated
Interest Charges related to the Senior Unsecured Indebtedness incurred on the Effective Date shall be the actual amount of such Consolidated Interest Charges for the period of four fiscal quarters then ended (calculated as if such Senior Unsecured
Indebtedness were incurred on the first day of the period of four fiscal quarters then ended) and (y) income taxes paid in cash shall be the actual amount of income taxes that would have been paid in cash in the period of four fiscal quarters
then ended if such Senior Unsecured Indebtedness were incurred on the first day of the period of four fiscal quarters then ended; 
 “Consolidated Fixed Charges” means, for any period, for the Borrower and its Subsidiaries on a consolidated basis, an amount equal to the sum of (a) the cash portion of Consolidated
Interest Charges for such period plus (b) Consolidated Scheduled Funded Debt Payments for such period plus (c) Restricted Payments paid in cash (other than Tax Distributions and the Permitted Share Repurchase) for such period. 

“Guarantors” means, collectively, (a) each Domestic Subsidiary identified as a “Guarantor” on the
signature pages hereto, (b) each Person that joins as a Guarantor pursuant to Section 7.12 or otherwise, (c) with respect to obligations under any Swap Contract between any Subsidiary and any Secured Swap Provider that is
permitted to be incurred pursuant to Section 8.03(d) and obligations under any Treasury Management Agreement between any Subsidiary and any Lender or Affiliate of a Lender, the Borrower, and (d) the successors and permitted assigns
of the foregoing 
  

	 	3.3	In clause (b) of the definition of “Consolidated EBITDA” in Section 1.01 the “and” before clause (xvii) is deleted and the following
new clauses are inserted after clause (xvii) to read as follows: 

 (xviii) on the Second Amendment Effective
Date, costs and expenses relating to closing PHC offices and severance in an aggregate amount not to exceed $3,400,000, provided that commencing with the fiscal quarter ending December 31, 2011 such add-back shall be reduced by 25% of the
initial amount on the last day of such fiscal quarter and on the same day of each successive fiscal quarter; 
 (xix) on the
Second Amendment Effective Date, losses with respect to the Loan Parties’ Seven Hills facility in Las Vegas, NV in an aggregate amount not to exceed $800,000, provided that commencing with the fiscal quarter ending December 31, 2011 such
add-back shall be reduced by 25% of the initial amount on the last day of such fiscal quarter and on the same day of each successive fiscal quarter; 
 (xx) on the Second Amendment Effective Date, pro forma revenue related to a rate increase of 28% on a behavioral health management contract administered by Harmony Healthcare located in Nevada in an
aggregate amount not to exceed $1,800,000, provided that (A) on September 30, 2011 such add-back shall be reduced by 25% of the initial amount and (B) commencing with the fiscal quarter ending December 31, 2011 such add-back
shall be further reduced by 25% of the initial amount on the last day of such fiscal quarter and on the same day of each successive fiscal quarter; 

  
 6 

 (xxi) on the Second Amendment Effective Date, rent expense with respect to the Loan
Parties’ Capstone Academy facility in an aggregate amount not to exceed $700,000, provided that commencing with the fiscal quarter ending December 31, 2011 such add-back shall be reduced by 25% of the initial amount on the last day of such
fiscal quarter and on the same day of each successive fiscal quarter; 
 (xxii) on the Second Amendment Effective Date, pro
forma revenue related to the expansion of the contract with the Detroit-Wayne County CMHA in an aggregate amount not to exceed $200,000 during such period, provided that commencing with the fiscal quarter ending December 31, 2011 such add-back
shall be reduced by 25% of the initial amount on the last day of such fiscal quarter and on the same day of each successive fiscal quarter; 
 (xxiii) any financial advisory fees, accounting fees, legal fees and other similar advisory and consulting fees, management fees, transaction fees and out-of-pocket expenses incurred as a result of the
PHC Transaction in an aggregate amount not to exceed $23,600,000 provided that such fees and expenses are incurred within 120 days after the Second Amendment Effective Date; 
 (xxiv) the Management Services Termination Fees; and 
 (xxv) the arrangement fee
paid to the Arranger and the amendment fees paid to the Lenders in connection with the Second Amendment. 
  

	 	3.4	At the end of the definition of “Consolidated EBITDA” in Section 1.01 the following sentence is inserted. 

For purposes of clarification, when calculating Consolidated EBITDA on a Pro Forma Basis, Consolidated EBITDA attributed to PHC shall
include Consolidated EBITDA on a Pro Forma Basis of MeadowWood Hospital located at 575 South DuPont Highway, New Castle County, DE (“MeadowWood”) if MeadowWood is acquired by PHC prior to the Second Amendment Effective Date.

 3.5 The definition of “Excluded Equity Issuance” in Section 1.01 is amended to read as follows: 

“Excluded Equity Issuance” means any Equity Issuance by the Borrower (a) to the Sponsor, its Controlled Investment
Affiliates and any other Person that owns Equity Interests in the Borrower on the Closing Date; (b) to any director, officer, member of management or employee of the Borrower or any Subsidiary pursuant to any employment agreement, compensation,
bonus plan or employee stock option plan of the Borrower or any Subsidiary; (c) the Net Cash Proceeds of which or used (or the Equity Interests issued pursuant thereto are used) by the Borrower or any Subsidiary to finance Permitted
Acquisitions or capital expenditures so long as such Net Cash Proceeds are expended to finance such Permitted Acquisition or capital expenditure within 180 days of the receipt of such Net Cash Proceeds by the Borrower or any Subsidiary; (d) the
Net Cash Proceeds of which are used by the Borrower to refinance the Bridge Senior Unsecured Indebtedness; and (e) pursuant to preemptive rights arising from each of the foregoing issuances. 

  
 7 

	 	3.6	In clause (d) of the definition of “Permitted Acquisition” in Section 1.01, the “and” after clause (i) is deleted, “and” is
inserted after clause (ii) and a new clause (iii) is inserted to read as follows: 

 (iii) the
Consolidated Senior Secured Leverage Ratio recomputed as of the end of the period of the four fiscal quarters most recently ended for which the Borrower has delivered financial statements pursuant to Section 7.01(a) or
(b) would be 0.25 less than the maximum Consolidated Senior Secured Leverage Ratio permitted under Section 8.11(b) as of the end of the period of the four fiscal quarters most recently ended for which the Borrower has
delivered financial statements pursuant to Section 7.01(a) or (b) (or in the case of any such Acquisition consummated prior to the date a Compliance Certificate is required to be delivered pursuant to
Section 7.02(b) for the first fiscal quarter ending after the PHC Acquisition, the Consolidated Senior Secured Leverage Ratio recomputed as of the end of the period of the four fiscal quarters most recently ended for which the Borrower
has delivered financial statements pursuant to Section 7.01(a) or (b) would be 0.25 less than the maximum Consolidated Senior Secured Leverage Ratio permitted under Section 8.11(b) for the fiscal quarter ending
September 30, 2011). Notwithstanding anything to the contrary contained in the Loan Documents, the PHC Acquisition shall be a Permitted Acquisition. 
  

	 	3.7	Each reference to “Parent” other than the references to “Parent” in each of the definitions of “Acadia Audited Financial Statements”,
“Acadia Interim Financial Statements”, “Equity Repurchase”, “Management Agreement”, “Management Expenses” and “Management Fees” in Section 1.01; Section 6.05(c); and Sections 7.01(a)(i) and
(b)(i)) is amended to read “Borrower”. 

  

	 	3.8	In Section 2.05(b)(iv) each reference to “Consolidated Leverage Ratio” is amended to read “Consolidated Senior Secured Leverage Ratio”.

  

	 	3.9	In Section 7.01(a)(iii) the reference to “one hundred five days after the end of each fiscal year of the Borrower” is amended to read “ninety days
after the end of each fiscal year of the Borrower (or, if earlier, 15 days after the date required to be filed with the SEC (without giving effect to any extension permitted by the SEC))”. 

 

	 	3.10	In Section 7.02(b) the reference to “Sections 7.01(a) and (b)” is amended to read “Sections 7.01(a)(iii) and
(b)(iii)”. 

  

	 	3.11	In Article VII a new section 7.15 is inserted to read as follows: 

 7.15 PHC Office Closing. 
 The Borrower shall close
PHC’s offices located at 200 Lake Street, Suite 102, Peabody, MA 01960 by the date that is four months after the Second Amendment Effective Date. 

  
 8 

	 	3.12	In Section 8.03 the “and” after clause (l) is deleted, clause (m) is renumbered as clause (n) and a new clause (m) is inserted to
read as follows: 

  

	 	(m)	(i) senior unsecured bridge Indebtedness of the Borrower, including any rollover loan or exchange notes issued in exchange thereof (the “Bridge Senior Unsecured
Indebtedness”); provided that: 

 (A) the aggregate outstanding principal amount of Bridge Senior
Unsecured Indebtedness, Permanent Senior Unsecured Indebtedness and the Deficiency Note shall not at any time exceed the sum of $150 million plus the non-cash portion of the interest rate applicable to Bridge Senior Unsecured Indebtedness, Permanent
Senior Unsecured Indebtedness and the Deficiency Note that has accrued to principal plus Refinancing Costs; 
 (B) the maximum
interest rate applicable to such Indebtedness shall not exceed the Interest Rate Cap (including any original issue discount or any non-cash portion of the interest rate that accrues to principal but excluding (x) any default interest and
(y) up to 1.00% per annum of liquidated damages in the form of increased interest); 
 (C) such Indebtedness shall not
be subject to any mandatory redemption, mandatory repurchase or other mandatory prepayments of principal other than (1) in connection with a change of control (or other comparable term), (2) with the proceeds of any issuance of Equity
Interests, any issuance of Indebtedness or any sale or other disposition of property (including casualty events) in each case to the extent such proceeds are not required to prepay the obligations arising under this Agreement or any restatement,
renewal or refinancing thereof and (3) with excess cash flow provided that the obligations arising under this Agreement and all restatements, renewals and refinancings thereof have been repaid in full and the Commitments and all commitments to
extend credit under all such restatements, renewals and refinancings have been terminated; and 
 (D) such Indebtedness contains
each of the Senior Unsecured Indebtedness Standard Terms. 
 (ii) senior unsecured Indebtedness of the Borrower (the
“Permanent Senior Unsecured Indebtedness”); provided that: 
 (A) the aggregate outstanding principal
amount of Bridge Senior Unsecured Indebtedness, Permanent Senior Unsecured Indebtedness and the Deficiency Note shall not at any time exceed the sum of $150 million plus the non-cash portion of the interest rate applicable to Bridge Senior Unsecured
Indebtedness, Permanent Senior Unsecured Indebtedness and Deficiency Note that has accrued to principal plus Refinancing Costs; 

(B) the maturity date of such Indebtedness shall be at least 181 days after the Maturity Date; 

(C) the interest rate applicable to such Indebtedness shall be determined by the financial institution engaged by the Borrower in
connection with the arrangement of the issuance of such Indebtedness, in consultation with the Borrower, in light of the then prevailing market 

  
 9 

 
conditions for comparable securities; provided that the maximum interest rate applicable to such Indebtedness shall not exceed the Interest Rate Cap (including any original issue discount
or any non-cash portion of the interest rate that accrues to principal but excluding (x) any default interest and (y) up to 1.00% per annum of liquidated damages in the form of increased interest); 

(D) such Indebtedness shall not be subject to any mandatory redemption, mandatory repurchase or other mandatory prepayments of principal
other than in connection with (x) a change of control (or other comparable term) and (y) sales or other dispositions of property (including casualty events) in each case to the extent such proceeds are not required to prepay the
obligations arising under this Agreement or any restatement, renewal or refinancing thereof; 
 (E) such Indebtedness contains
each of the Senior Unsecured Indebtedness Standard Terms; and 
 (F) if any Bridge Senior Unsecured Indebtedness is outstanding,
the Borrower shall have delivered to the Administrative Agent consolidated forecasts prepared by management of the Borrower of the calculation of the Consolidated Fixed Charge Coverage Ratio for each year thereafter during the term of the Credit
Agreement. 
 (iii) Indebtedness issued by the Borrower on the Second Amendment Effective Date to any Person who owns Equity
Interests of the Parent on the Second Amendment Effective Date in connection with the PHC Transaction (the “Deficiency Note”) provided that (A) the aggregate outstanding principal amount of such Indebtedness plus any Senior
Unsecured Indebtedness shall not exceed $150 million on the Second Amendment Effective Date; (B) the maturity date of such Indebtedness shall be at least 181 days after the Maturity Date; (C) such Indebtedness shall not be subject to any
mandatory redemption, mandatory repurchase or other mandatory prepayments of principal other than in connection with a change of control (or other comparable term); (D) such Indebtedness shall not be subject to any scheduled redemptions,
scheduled repurchases or other scheduled payments of principal (other than the scheduled payment of principal on the maturity date of such Indebtedness); (E) such Indebtedness shall not be subject to any cash pay interest (i.e., all interest
shall accrue and be added to the principal); and (F) such Indebtedness shall be subordinated to the Obligations in a manner and to an extent reasonably acceptable to the Administrative Agent. 

 

	 	3.13	Section 8.04 is amended to read as follows: 

 Merge, dissolve, liquidate or consolidate with or into another Person, except that so long as no Default exists or would result therefrom, (a) the Borrower may merge or consolidate with any
Subsidiary, provided that the Borrower shall be the continuing or surviving Person, (b) any Subsidiary may merge or consolidate with any other Subsidiary, provided that (i) if a Guarantor is a party thereto, then a Guarantor shall
be the continuing or surviving Person and (ii) if a Guarantor is not a party thereto and a Domestic Subsidiary is a party thereto, then a Domestic Subsidiary shall be the continuing or surviving Person, (c) the Borrower or any Subsidiary
may merge with any 

  
 10 

 
other Person in connection with a Permitted Acquisition provided that if the Borrower is a party thereto, then the Borrower shall be the continuing or surviving Person and (d) any Subsidiary
may dissolve, liquidate or wind up its affairs at any time provided that such dissolution, liquidation or winding up, as applicable, could not have a Material Adverse Effect 

 

	 	3.14	In Section 8.06 the “and” after clause (d) is deleted, a “;” is inserted after clause (e) and a new clauses (f) and (g) are
inserted to read as follows: 

 (f) the Borrower may repurchase its Equity Interests with up to $90 million of the
Net Cash Proceeds from the incurrence of Senior Unsecured Indebtedness (the “Permitted Share Repurchase”), provided that the Permitted Share Repurchase is made within 2 Business Days after the Second Amendment Effective Date;
and 
 (g) the Borrower may make Restricted Payments in respect of fractional shares as set forth in the PHC Acquisition
Agreement. 
  

	 	3.15	In Section 8.08(a) the “and (v)” is deleted, “,” is inserted after clause (iv) and the following is inserted thereafter:

 (v) payment of the Management Services Termination Fees and execution, delivery and performance of the
Termination Agreement in respect of the Management Agreement (the “Management Services Termination Agreement”) and (vi) 
 In Section 8.08(b) the “.” at the end of clause (ii) is deleted, “and” is inserted in lieu thereof and a new clause (iii) is inserted to read as follows: 

(iii) the Management Services Termination Fees. 
  

	 	3.16	In Section 8.09 the “or” after clause (4) is deleted and replaced with “,” and new clauses (6) and (7) are inserted after clause
(5) to read as follows: 

 (6) restrictions and conditions contained in the documents, agreements and
instruments governing Senior Unsecured Indebtedness, or (7) restrictions and conditions contained in documents, agreements and instruments governing joint venture arrangements and similar Investments, 

 

	 	3.17	Section 8.11 is amended to read as follows: 

 Section 8.11 Financial Covenants. 
 (a) Consolidated Leverage Ratio.
Permit the Consolidated Leverage Ratio determined as of the end of any fiscal quarter of the Borrower set forth below to be greater than the ratio corresponding to such fiscal quarter: 

 

					
	 Fiscal Quarter Ending
	 	Maximum Consolidated
Leverage
Ratio	 
	 June 30, 2011
	 	 	4.25:1.0	  
	 September 30, 2011
	 	 	6.25:1.0	  
	 December 31, 2011
	 	 	6.00:1.0	  
	 March 31, 2012
	 	 	6.00:1.0	  
	 June 30, 2012
	 	 	6.00:1.0	  
	 September 30, 2012
	 	 	6.00:1.0	  
	 December 31, 2012
	 	 	5.50:1.0	  
	 March 31, 2013
	 	 	5.50:1.0	  
	 June 30, 2013
	 	 	5.50:1.0	  
	 September 30, 2013
	 	 	5.50:1.0	  
	 December 31, 2013
	 	 	4.75:1.0	  
	 March 31, 2014
	 	 	4.75:1.0	  
	 June 30, 2014
	 	 	4.75:1.0	  
	 September 30, 2014
	 	 	4.75:1.0	  
	 December 31, 2014 and each fiscal quarter ending thereafter
	 	 	4.00:1.0	  

  
 11 

 (b) Consolidated Senior Secured Leverage Ratio. Permit the Consolidated Senior
Secured Leverage Ratio determined as of the end of any fiscal quarter of the Borrower set forth below to be greater than the ratio corresponding to such fiscal quarter: 

 

					
	 Fiscal Quarter Ending
	 	Maximum Consolidated Senior
Secured Leverage Ratio	 
	 September 30, 2011
	 	 	3.50:1.0	  
	 December 31, 2011
	 	 	3.00:1.0	  
	 March 31, 2012
	 	 	3.00:1.0	  
	 June 30, 2012
	 	 	3.00:1.0	  
	 September 30, 2012
	 	 	3.00:1.0	  
	 December 31, 2012 and each fiscal quarter ending thereafter
	 	 	2.50:1.0	  

 (c) Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge
Coverage Ratio determined as of the end of any fiscal quarter of the Borrower to be less than (i) 1.25:1.0 for the fiscal quarter ending June 30, 2011 and (ii) 1.20:1.0 for the fiscal quarter ending September 30, 2011 and each
fiscal quarter ending thereafter; provided that if any Senior Unsecured Indebtedness incurred on the Second Amendment Effective Date has an interest rate in excess of 13% then such Consolidated Fixed Charge Coverage Ratio shall not be less
than 1.10:1.0 for the first two fiscal quarters of the Borrower ending after the Second Amendment Effective Date. 
  

	 	3.18	In Section 8.12 the following is added at the end of clause (a): 

 (other than the amendment and restatement of the bylaws and the certificate of incorporation of the Borrower in connection with the PHC Acquisition provided such amendments and restatements are
substantially in the forms of Exhibit B and Exhibit C, respectively, to the Second Amendment to this Agreement). 
  

	 	3.19	In Section 8.13 clause (a) is amended to read as follows: 

 (a) permit any Person (other than the Borrower or any Wholly Owned Subsidiary) to own any Equity Interests of any Subsidiary, except (A) to qualify directors where required by applicable Law or to
satisfy other requirements of applicable Law with respect to the ownership of Equity Interests of Foreign Subsidiaries and (B) other Persons holding Equity Interests in the PHC Joint Ventures 

  
 12 

	 	3.20	In Section 8.16 the phrase “any Merger Document or the Management Agreement” is amended to read “any Merger Document, any PHC Acquisition Document,
the Management Agreement or the Management Services Termination Agreement” and the following is added at the end thereof: 

 Notwithstanding anything to the contrary contained herein, the Management Services Termination Agreement is permitted. 
  

	 	3.21	Section 8.17 is amended to read as follows: 

 8.17 Senior Unsecured Indebtedness. 
 (a) Amend or modify
any Senior Unsecured Indebtedness or the Deficiency Note if such amendment or modification would add or change any terms in a manner materially adverse to the Lenders (unless, such Senior Unsecured Indebtedness, as so amended or modified, would at
such time be permitted to be incurred pursuant to Section 8.03(m)). 
 (b) Make (or give any notice
with respect thereto) any voluntary or optional payment or prepayment or redemption or acquisition for value of (including without limitation, by way of depositing money or securities with the trustee with respect thereto before due for the purpose
of paying when due), refund, refinance or exchange of any Senior Unsecured Indebtedness or Deficiency Note, other than the payment, prepayment, redemption, refund, refinance or exchange of Bridge Senior Unsecured Indebtedness with (i) the Net
Cash Proceeds of any concurrent issuance of Bridge Senior Unsecured Indebtedness or Permanent Senior Unsecured Indebtedness, (ii) the Net Cash Proceeds of any concurrent Equity Issuance or (iii) the proceeds of any Disposition or Recovery
Event to the extent such proceeds are not required to prepay the Loans and/or Cash Collateralize the L/C Obligations pursuant to Section 2.05(b)(ii). 
  

	 	3.22	In Section 9.01 clause (l) is renumbered as clause (m), the “.” after clause (l) is replaced with “; or” and a new clause (l) is
added thereto to read as follows: 

 (l) the maturity date of any Bridge Senior Unsecured
Indebtedness occurs without such Bridge Senior Unsecured Indebtedness being rolled over, exchanged or refinanced pursuant to Section 8.03(m); 
 3. Release of Parent. From and after the Effective Date, the Parent, is released and discharged from all of its obligations, claims and demands under the Loan Documents other than claims against
the Parent in connection with any proceeding under any Debtor Relief Laws of any of the Loan Parties if and to the extent any payment or other transfer made by any of the Loan Parties to the Administrative Agent, the L/C Issuer or any Lender on or
prior to the date hereof is avoided or otherwise rescinded, so that the Administrative Agent, the L/C Issuer or any Lender is required pursuant to any final order of a court of competent jurisdiction to repay such payment or transfer. 

4. Conditions Precedent. This Amendment shall become effective on the date on which each of the following conditions is satisfied
or waived by the Required Lenders (such date the “Effective Date”): 
 (a) Amendment.
Receipt by the Administrative Agent of counterparts of this Amendment executed by the Borrower, the Guarantors, the Required Lenders and the Required Revolving Lenders. 

  
 13 

 (b) Resolutions. Receipt by the Administrative Agent of resolutions
adopted by the board of directors (or equivalent governing body) of each Loan Party approving the Amendment and the transactions contemplated thereby, in each case certified by a secretary or assistant secretary of such Loan Party, as applicable, to
be true and correct as of the Effective Date and in each case in form and substance reasonably satisfactory to the Administrative Agent. 
 (c) Opinions of Counsel. Receipt by the Administrative Agent of opinions of legal counsel to the Loan Parties and any other local counsel reasonably required by the Administrative Agent, in each
case, addressed to the Administrative Agent and each Lender, dated as of the Effective Date, and in each case in form and substance reasonably satisfactory to the Administrative Agent. 

(d) PHC Acquisition. 
 (i) The Administrative Agent shall have received copies of the PHC Acquisition Agreement and all other material PHC Acquisition Documents certified by a Responsible Officer of the Borrower as true and
complete as of the date of this Amendment. Absent the consent of the Administrative Agent, no material provision of the PHC Acquisition Agreement or any other material PHC Acquisition Document shall have been amended, modified, supplemented, waived
or terminated since the date of this Amendment in a manner material and adverse to the Lenders. The PHC Acquisition Agreement and each other material PHC Acquisition Document shall be in full force and effect on the Effective Date. The Board of
Directors of PHC shall have approved the PHC Acquisition (and such approval shall continue until the consummation of the PHC Acquisition). 
 (ii) Substantially contemporaneous with the occurrence of the Effective Date (A) the PHC Acquisition shall have been consummated substantially in accordance with the PHC Acquisition Documents and in
compliance in all material respects with applicable Law and (B) the merger certificate evidencing the merger of PHC into a Wholly Owned Subsidiary of the Borrower shall have been filed and become effective. 

(e) Senior Unsecured Indebtedness. Substantially contemporaneous with the occurrence of the Effective Date the
Borrower shall have incurred Senior Unsecured Indebtedness. 
 (f) Consents. The Borrower shall have
received all necessary governmental, shareholder and third party consents necessary in connection with the PHC Transaction; and all applicable waiting periods shall have expired without any action being taken by any authority that could reasonably
be expected to restrain, prevent or impose any material and adverse conditions on the PHC Transaction. 
 (g)
Pro Forma Financial Statements; Forecasts. At least four (4) Business Days prior to the Effective Date the Administrative Agent shall have received the following, each in form and detail consistent with pro forma consolidated financial
statements and consolidated forecasts delivered to the Administrative Agent on or prior to the Closing Date or otherwise in form and 

  
 14 

 
detail reasonably satisfactory to the Administrative Agent: (i) pro forma consolidated financial statements as to the Borrower and its Subsidiaries giving effect to all elements of the PHC
Transaction to be effected on or before the Effective Date and (ii) consolidated forecasts prepared by management of the Borrower of balance sheets, income statements and cash flow statements as to the Borrower and its Subsidiaries on a
quarterly basis for the first year following the Effective Date and on an annual basis for each year thereafter during the term of the Credit Agreement. 
 (h) Representations and Warranties; No Default; Closing Certificate. 
 (A) The representations and warranties of each Loan Party contained in Sections 6.01(a) (as to valid existence), 6.01(b)(ii), 6.02 (other than 6.02(b)(i)), 6.03,
6.04, 6.14, 6.18 and 6.24 of the Credit Agreement shall be true and correct in all material respects on and as of the date of the Effective Date, except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date. 
 (B) The representations and warranties made by (or with respect to) PHC and its Subsidiaries in the PHC Acquisition Agreement and the other PHC Acquisition Documents (but only to the extent the Borrower
(or its applicable Affiliate) has the right to terminate the Borrower’s (or such Affiliate’s) obligations under the PHC Acquisition Agreement or decline to consummate the PHC Acquisition as a result of a breach of such representations and
warranties) that are material to the interests of the Lenders shall be true and correct in all material respects on and as of the Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in
which case they shall be true and correct in all material respects as of such earlier date. 
 (C) (i) No Default
shall exist on the date that is four (4) Business Days prior to the Effective Date and (ii) no Default under Section 9.01(a) or 9.01(f) and no Event of Default (other than as a result of non-compliance with
Section 8.11(c) on a Pro Forma Basis after giving effect to the PHC Transaction (as amended by the Second Amendment)) shall exist on the Effective Date or would exist after giving effect to the PHC Transaction. 

(D) Receipt by the Administrative Agent of a certificate signed by a Responsible Officer of the Borrower as of the date
that is four (4) Business Days prior to the Effective Date certifying that (x) the condition specified in clause (C)(i) above has been satisfied on and as of such date and (y) after giving effect to the PHC Transaction the condition
specified in Section 4(j) has been satisfied as of such date. 
 (E) Receipt by the Administrative
Agent of a certificate signed by a Responsible Officer of the Borrower as of the Effective Date certifying that (x) each of the conditions specified in clauses (A), (B) and (C)(ii) above have been satisfied on and as of the Effective Date
and (y) after giving effect to the PHC Transaction the conditions specified in Sections 4(d), (e), (f), (k), (l), (m) and (n) have been satisfied as of the Effective Date. 

(i) Pro Forma Compliance Certificate. At least four (4) Business Days prior to the Effective Date the Borrower
shall have delivered a Pro Forma Compliance Certificate to the Administrative Agent demonstrating that after giving effect to the PHC Transaction on a Pro Forma Basis the Consolidated Leverage Ratio recomputed as of the end of the period of four
fiscal quarters most recently ended for which the Borrower has delivered financial statements pursuant to Section 7.01(a) and (b) of the Credit Agreement would not exceed 5.85:1.0. 

  
 15 

 (j) Minimum EBITDA. At least four (4) Business Days prior to the
Effective Date the Administrative Agent shall have received evidence reasonably satisfactory to the Administrative Agent that after giving effect to the PHC Acquisition on a Pro Forma Basis Consolidated EBITDA (after giving effect to the amendment
to the definition of “Consolidated EBITDA” set forth herein) shall be not less than $53.5 million. 

(k) Availability under Aggregate Revolving Commitments. After giving effect to the PHC Transaction the unused
amount of the Aggregate Revolving Commitments shall be at least $20,000,000. 
 (l) Management Services
Termination Agreement. The Management Services Termination Agreement as executed by the parties thereto and as in effect on the Effective Date shall be in substantially the form of Exhibit A hereto. 

(m) Refinance of Existing Indebtedness. Substantially contemporaneous with the occurrence of the Effective Date PHC
shall have repaid all outstanding Indebtedness (other than Permitted Indebtedness) (the “Existing PHC Indebtedness”) and terminated all commitments to extend credit with respect to the Existing PHC Indebtedness, and all Liens
securing the Existing PHC Indebtedness (other than Permitted Liens) shall have been released. 
 (n) Material
Adverse Effect. Since June 30, 2010 there shall not have been or have occurred a Phoenix Material Adverse Effect (as defined in the PHC Acquisition Agreement). Since December 31, 2010 there shall not have been or have occurred an Ajax
Material Adverse Effect (as defined in the PHC Acquisition Agreement). 
 (o) Effective Date. The
Effective Date shall have occurred on or prior to December 15, 2011. 
 (p) Payment of Fees. The
Borrower shall have paid to the Administrative Agent, for the account of each Lender that approves this Amendment, an amendment fee equal to 0.25% on the amount of the Revolving Commitment of such Lender on the Effective Date plus the outstanding
principal amount of the Term Loan held by such Lender on the Effective Date. 
 (q) Payment of Expenses.
The Borrower shall have paid all other accrued reasonable and documented out-of-pocket expenses of the Lead Arranger and the Administrative Agent (including the fees and expenses of (i) one primary outside counsel to the Administrative Agent
and (ii) if this Amendment requires an amendment to any Mortgage, local real estate counsel for the Administrative Agent located in the state where the real property subject to such Mortgage is located) in connection with this Amendment, in
each case to the extent required by Section 11.04 of the Credit Agreement. 
 5. Amendment is a “Loan
Document”. This Amendment is a Loan Document and all references to a “Loan Document” in the Credit Agreement and the other Loan Documents (including, without limitation, all such references in the representations and warranties in
the Credit Agreement and the other Loan Documents) shall be deemed to include this Amendment. 
 6. Reaffirmation of
Obligations. Each Loan Party (a) acknowledges and consents to all of the terms and conditions of this Amendment, (b) affirms all of its obligations under the Loan Documents and (c) agrees that this Amendment does not operate to
reduce or discharge such Loan Party’s obligations under the Loan Documents. 

  
 16 

 7. Reaffirmation of Security Interests. Each Loan Party (a) affirms that each of
the Liens granted in or pursuant to the Loan Documents are valid and subsisting and (b) agrees that this Amendment does not in any manner impair or otherwise adversely effect any of the Liens granted in or pursuant to the Loan Documents.

 8. No Other Changes. Except as modified hereby, all of the terms and provisions of the Loan Documents shall remain in
full force and effect. 
 9. Counterparts; Delivery. This Amendment may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of this Amendment by facsimile or other electronic
imaging means shall be effective as an original. 
 10. Governing Law. This Amendment shall be deemed to be a contract
made under, and for all purposes shall be construed in accordance with, the laws of the State of New York. 
 [SIGNATURE PAGES
FOLLOW] 

  
 17 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly
executed as of the date first above written. 
  

							
	BORROWER:	 	ACADIA HEALTHCARE COMPANY, INC., a Delaware corporation
				
		 	By:	 	 /s/ Joey A. Jacobs
	 	
		 	Name:	 	Joey A. Jacobs	 	
		 	Title:	 	Chief Executive Officer	 	
		
	GUARANTORS:	 	ACADIA HEALTHCARE HOLDINGS, LLC, a Delaware limited liability company
		 	ACADIA MANAGEMENT COMPANY, INC., a Delaware corporation
				
		 	By:	 	 /s/ Joey A. Jacobs
	 	
		 	Name:	 	Joey A. Jacobs	 	
		 	Title:	 	Chief Executive Officer	 	
		
		 	ACADIA-YFCS HOLDINGS, INC., a Delaware corporation
		 	YOUTH & FAMILY CENTERED SERVICES, INC., a Georgia corporation
		 	ACADIA HOSPITAL OF LONGVIEW, LLC, a Delaware limited liability company
		 	KIDS BEHAVIORAL HEALTH OF MONTANA, INC., a Montana corporation
		 	ACADIA VILLAGE, LLC, a Delaware limited liability company
		 	 LAKEVIEW BEHAVIORAL HEALTH SYSTEM LLC,
 a Delaware limited liability company

		 	ACADIA RIVERWOODS, LLC, a Delaware limited liability company
		 	ACADIA LOUISIANA, LLC, a Delaware limited liability company
		 	ACADIA ABILENE, LLC, a Delaware limited liability company
		 	ACADIA HOSPITAL OF LAFAYETTE, LLC, a Delaware limited liability company
		 	YFCS MANAGEMENT, INC., a Georgia corporation
		 	YFCS HOLDINGS-GEORGIA, INC., a Georgia corporation
		 	OPTIONS COMMUNITY BASED SERVICES, INC., an Indiana corporation
		 	 OPTIONS TREATMENT CENTER ACQUISITION CORPORATION,
 an Indiana corporation

		 	RESOLUTE ACQUISITION CORPORATION, an Indiana corporation
		 	RESOURCE COMMUNITY BASED SERVICES, INC., an Indiana corporation
		 	RTC RESOURCE ACQUISITION CORPORATION, an Indiana corporation
		 	SUCCESS ACQUISITION CORPORATION, an Indiana corporation
		 	ASCENT ACQUISITION CORPORATION, an Arkansas corporation
		 	SOUTHWOOD PSYCHIATRIC HOSPITAL, INC., a Pennsylvania corporation
		 	 MEMORIAL HOSPITAL ACQUISITION CORPORATION,
 a New Mexico corporation

		 	MILLCREEK MANAGEMENT CORPORATION, a Georgia corporation
		 	REHABILITATION CENTERS, INC., a Mississippi corporation
		 	LAKELAND HOSPITAL ACQUISITION CORPORATION, a Georgia corporation
		 	PSYCHSOLUTIONS ACQUISITION CORPORATION, a Florida corporation
				
		 	By:	 	 /s/ Joey A. Jacobs
	 	
		 	Name:	 	Joey A. Jacobs	 	
		 	Title:	 	President	 	

							
		 	 YOUTH AND FAMILY CENTERED SERVICES OF NEW MEXICO, INC.,
 a New Mexico corporation

		 	 SOUTHWESTERN CHILDREN’S HEALTH SERVICES, INC.,
 an Arizona corporation

		 	 YOUTH AND FAMILY CENTERED SERVICES OF FLORIDA, INC.,
 a Florida corporation

		 	PEDIATRIC SPECIALTY CARE, INC., an Arkansas corporation
		 	CHILD & YOUTH PEDIATRIC DAY CLINICS, INC, an Arkansas corporation
		 	MED PROPERTIES, INC., an Arkansas corporation
		 	ASCENT ACQUISITION CORPORATION-CYPDC, an Arkansas corporation
		 	ASCENT ACQUISITION CORPORATION-PSC, an Arkansas corporation
		 	MEDUCARE TRANSPORT, L.L.C., an Arkansas limited liability company
		 	 PEDIATRIC SPECIALTY CARE PROPERTIES, LLC,
 an Arkansas limited liability company

		 	 CHILDRENS MEDICAL TRANSPORTATION SERVICES, LLC,
 an Arkansas limited liability company

		 	MILLCREEK SCHOOLS INC., a Mississippi corporation
		 	HABILITATION CENTER, INC., an Arkansas corporation
		 	MILLCREEK SCHOOL OF ARKANSAS, INC., an Arkansas corporation
		 	PSYCHSOLUTIONS, INC., a Florida corporation
				
		 	By:	 	 /s/ Joey A. Jacobs
	 	
		 	Name:	 	Joey A. Jacobs	 	
		 	Title:	 	President	 	

 [SIGNATURE PAGES FOLLOW] 

							
	ADMINISTRATIVE AGENT:	 	BANK OF AMERICA, N.A., as Administrative Agent
				
		 	By:	 	 /s/ Anne M. Zeschke
	 	
		 	Name:	 	Anne M. Zeschke	 	
		 	Title:	 	Vice President	 	

 [SIGNATURE PAGES FOLLOW] 

							
	LENDERS:	 	BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender
				
		 	By:	 	 /s/ Suzanne B. Smith
	 	
		 	Name:	 	Suzanne B. Smith	 	
		 	Title:	 	Senior Vice President	 	
			
		 	FIFTH THIRD BANK	 	
				
		 	By:	 	 /s/ William D. Priester
	 	
		 	Name:	 	William D. Priester	 	
		 	Title:	 	Vice President	 	
		
		 	GENERAL ELECTRIC CAPITAL CORPORATION
				
		 	By	 	 /s/ Jonathan Ruschhaupt
	 	
		 	Name:	 	Jonathan Ruschhaupt	 	
		 	Title:	 	Duly Authorized Signatory	 	
		
		 	CITIGROUP GLOBAL MARKETS, INC.
				
		 	By:	 	 /s/ Dina Garthwaite
	 	
		 	Name:	 	Dina Garthwaite	 	
		 	Title:	 	Vice President	 	
		
		 	REGIONS BANK
				
		 	By:	 	 /s/ Helen C. Hartz
	 	
		 	Name:	 	Helen C. Hartz	 	
		 	Title:	 	Vice President	 	
		
		 	RAYMOND JAMES BANK, FSB
				
		 	By:	 	 /s/ Alexander L. Rody
	 	
		 	Name:	 	Alexander L. Rody	 	
		 	Title:	 	Senior Vice President	 	
			
		 	ROYAL BANK OF CANADA	 	
				
		 	By:	 	 /s/ Sharon M. Liss
	 	
		 	Name:	 	Sharon M. Liss	 	
		 	Title:	 	Authorized Signatory	 	
		
		 	FIRST TENNESSEE BANK
				
		 	By:	 	 /s/ Cathy Wind
	 	
		 	Name:	 	Cathy Wind	 	
		 	Title:	 	Senior Vice President	 	

 [SIGNATURE PAGES FOLLOW] 

							
		 	CAPSTAR BANK
				
		 	By:	 	 /s/ Timothy B. Fouts
	 	
		 	Name:	 	Timothy B. Fouts	 	
		 	Title:	 	Senior Vice President	 	
		
		 	GE CAPITAL FINANCIAL INC.
				
		 	By:	 	 /s/ Heather-Leigh Glade
	 	
		 	Name:	 	Heather-Leigh Glade	 	
		 	Title:	 	Duly Authorized Signatory	 	

 Exhibit A 
 Management Services Termination Agreement 
 See attached. 

 EXECUTION COPY 
 TERMINATION AGREEMENT 
 THIS TERMINATION AGREEMENT (this
“Agreement”) is made and entered into as of November 1, 2011 by and between Waud Capital Partners, L.L.C., a Delaware limited liability company (“WCP”), and Acadia Healthcare Company, Inc., a Delaware corporation,
and its affiliates (the “Company”). Capitalized terms used and not otherwise defined herein have the meanings set forth in the Professional Services Agreement (as defined below). 

WHEREAS, WCP and the Company are party to that certain Professional Services Agreement, dated as of April 1, 2011 (the
“Professional Services Agreement”); 
 WHEREAS, the Company is party to an Agreement and Plan of Merger, dated
as of May 23, 2011 (the “Merger Agreement”), pursuant to which, among other things, PHC, Inc., a Massachusetts corporation, will merge with and into Acadia Merger Sub, LLC, a Delaware limited liability company and
wholly-owned subsidiary of the Company (“Merger Sub”), with Merger Sub surviving as the surviving corporation in such merger (the “Merger”); and 

WHEREAS, WCP and the Company have agreed to terminate the Professional Services Agreement effective as of the effective time of the
Merger in exchange for a cash termination fee to be payable upon consummation of the Merger. 
 NOW, THEREFORE, the parties
hereto, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, intending to be legally bound, hereby agree as follows: 

1. Termination of Professional Services Agreement; Termination Fee. Notwithstanding anything to the contrary contained in the
Professional Services Agreement, WCP and the Company agree that (a) upon consummation of the Merger, WCP shall be entitled to receive (i) an M&A transaction fee in the amount of $1,615,000 (the “M&A Fee”), (ii) a financing
fee in the amount of $2,750,000 (the “Financing Fee”), (iii) a sale transaction fee in the amount of $6,194,000 (the “Sale Fee”), and (iv) in exchange for its agreement hereunder to terminate the Professional
Services Agreement prior to the expiration of its term, the Company shall pay to WCP a termination fee in the aggregate amount of $10,000,000 (the “Termination Fee” and, collectively with the M&A Fee, the Financing Fee and the
Sale Fee, the “Transaction Fees”), as follows: $2,500,000 in respect of foregone Advisory Fees, $2,500,000 in respect of foregone M&A transaction fees, $2,500,000 in respect of foregone financing fees and $2,500,000 in respect
of foregone sale fees, (b) upon consummation of the Merger and receipt by WCP of all Transaction Fees payable hereunder, the Professional Services Agreement shall terminate automatically effective for all purposes and shall have no further force or
effect and none of the parties thereto shall have any rights, obligations or liabilities thereunder or with respect thereto. All Transaction Fees payable hereunder shall be paid to WCP on the date on which the Merger is consummated by wire transfer
of immediately available to an account or accounts designated by WCP to the Company. 
 2. Complete Agreement; Successors and
Assigns. This Agreement embodies the complete agreement and understanding among the parties hereto and supersedes and preempts any prior understandings, agreements or representations by or among the parties hereto, written or oral, which may
have related to the subject matter hereof in any way. This Agreement is intended to bind, inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns. 

3. Counterparts; Governing Law. This Agreement may be executed in two or more counterparts (including by means of facsimile or
other electronic transmission), each of which shall be deemed to be an original and all of which shall constitute the same instrument. This Agreement shall be governed by the laws of the State of Delaware, without giving effect to conflict of laws
provisions. 
 *    *    *    *    * 

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

			
	WAUD CAPITAL PARTNERS, L.L.C.
		
	By:	 	/s/ Reeve B. Waud
	Name:	 	Reeve B. Waud
	Its:	 	Authorized Signatory
	
	 ACADIA HEALTHCARE COMPANY, INC.

		
	By:	 	/s/ Christopher L. Howard
	Name:	 	Christopher L. Howard
	Its:	 	Executive Vice President, General Counsel and Secretary

 Exhibit B 
 Amended and Restated Bylaws of the Borrower 
 See Exhibit 3.2. 

 Exhibit C 
 Amended and Restated Certificate of Incorporation of the Borrower 
 See Exhibit 3.1

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