RESOLI]TIOI\ OF TIIE MEMBERS OF TIIE

CHATHAM COUNTY HOSPITAL AUTIIORITY

Effective as of April 15r2016
WHEREAS, The ChathamCounty Hospital Authority (the "Authority") is a public body
corporateand politic createdand existing pursuantto the Hospital Authorities Law, O.C.G.A.
g3I-7-70 et. seq and establishedand reconstitutedby ChathamCounty under resolutionsof the
Commissionersof ChathamCountY;
WHEREAS, the Authority owns Memorial Medical Center, an acute care general
hospitallocatedin Savannah,Georgia;
WHER.EAS, the Authority is a party to that certain Amended and RestatedLease
Agreement by and among Memorial Health University Medical Center, Inc. and Mernorial
Health,Inc., datedas of May I,2004, as amendedMay 1, 2012(Ihe "Lease");
WHEREAS, Memorial Health Inc. is in discussionswith Novant Health,Inc. ("Novant")
with regard to potential partnershipthat would require an amendmentto the Lease;
WHEREAS, the Authority has been askedby Novant to review and agreeto certainnonbinding specific conceptsto be addressedin an amendmentto the Lease,as set forth in the letter
attachedhereto at Exhibit "A" (the "Novant Letter"); and
WHEREAS, Novant has stated that execution of the non-binding Novant Letter is a
condition precedentto further discussionsand negotiationsbetween Novant and the Authority
regardinga proposedamendmentto the Lease.
NOW TIIEREFORE, THE AUTIIORITY HEREBY RESOLVES AS FOLLOWS:
Approval of Certain Correspondence
NOW, THEREFOR.E, BE IT RESOLVED, that the Authority doeshereby approvethe
transmittal letter in substantiallythe same form attachedhereto as Exhibit "B" (the "Transmittal
Letter") andthe Novant Letter;
FUR.THER R.ESOLVED, the appropriateofficers or membersof the Authority arehereby
authorizedto executeanddeliver the Novant Letter; and
FURTHER RESOLVED, the appropriateofficers or membersof the Authority arehereby
authorizedto executeand deliverthe TransmittalLetter'
Ratification of Prior Acts
FURTHER RESOLVED, that all prior actionstaken on the Authority's behalf by the
Authority's members,directorsand officers in furtheranceof the foregoing resolution are hereby
ratified,adoptedandapprovedin all respects.

8142328v2

EXIIIBIT "A"
l\ovant Letter

(Seeattached)

8142328v2

,lu;

'WSVAH
I-IHALTH

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April12;?016:

nqvanth*atttrr'.tr$

Hapl"/,t{bslam
Chair
Health"Inc.
Mennsrial
Avs,
47CI0Waters
eA3'14CI4
Sav*m+ah
IvIr.BonWatis
Ghait
Carrntfl'trssBit*IAuthori$
Chathnm
Avseqs
4700trV,llters
3t404
SavannahrGA
Fe4.r:Sentlernenl
No-vant
betweerr
Ttrankvor for takirrsthetimelastweekto discasstheproposedpartnsrship
wit&{he,tr+l sacliolr,NovantHealthhas
lil;itlt;t*, andMelr,oriall{oam In.sorrnegtion
ldbffiorial'a*dtheChathamCoqnfyHospital
to theLeaseiberweon
sev amer,tdrnent$
req$e$ied
ttrlop.4rties
:hd$ie
ghe
theKeyf,ffiilF $at *S beli,oYe
A rqllrmsnts
atrached
S-chpduio
aiitUtirfrl.
l;easeArnoadarent;
ag-reed
.OrVitkre$pectt$ thBpfopon+d
tentativo,ly
concppt*to
of y urorganizatiQn'regarding
tlcsundqf$tand,ing.
Iitlie,attac.l Koy T+rnutTsfrl$pt
indicated
;;ri;d"d iott* fu*r* Asrendme*,pfea*esigna*opy oflthisletterint]1e,s.ry.ace
QnQea
aleatp,!,r'{si-e11rerqpyfltt11i91t\0ry,
t*1"*t*O:umaila,copyof'rhesignecl'letterto

i"it.*1T11:19"1ctive
wewillea1h
*ig$"r{l*r;n"m*u orgapizafon'hss'brs{r,receiti+
Nof-1$y-*1i1bs
ilrapropcseAl"e{o,
cbncept$
oi*o*it ,.foa*Orialize:ti#Se
{ruenrl:rull,
thepaftieshava'
in this lpttefuntit
ttr'theKey Ternrs,ontilned
wlth.r,es,peot
teealiybCIund
Lease
Amendftont'
anddulysignedthe
$sbotieted

provi<iing
lvith Memarialartclrto
to lookfofwardtothepartnershijl
NovailtFleaithcontinu$s
'Chat}ram
Co$-rlty'
reruarkabje
Ser$to th* patiepts*f,h{emorialandtheresidents'sf

Peter$, Btilltstettef
Sx*cutiveVF& C,htefLegal0ffiEer
S. ..{rgaats
cci C'4r1.
Pigqid.epf,&,GfiQ
AftDa$a
R, Jonat-hss,Ilart

SCHEI}ULE A
SeeondAmendmentto Arnendedand RestatedLease
BetrvcenChatham County Hospital Authority and
MemorialHealth, In+..

Kev Terrns
1. Term - Resettermto 40 yearsat closing. Term automaticatlyresetsto 40 years.on l0'h
anniversaryof closingandevery5tl'yearthereafterunlesseitherpartyprovidesnoticeof
nonrenewal.Novanthasrieht to unwindMSA with Mernorialif leaseterm falls below
20 years.

2. Continudtionof Seruices
will rtotreducdlevet
3 NICUto Level
NICU andTraumaServims- Memorial
2 or rednceLevelI Traumato Level2 withoutapprovalfromCCHA. CCI-IA
in light of
will notwithholdapproval
reasonable
if reduotion
is commercially
healthcarernarketconditionn.ln theeventof dispute,cominercial
reasonableness
is subjectto bindingarbitration.
of reduction
b. Indigent Care --Menroriaito continuetc prnvideindigentcareto in cornpliance
with IntergovenmentalContract.
o. Graduate Medical Education- Memorialto continueto participatein CME to
ilre extentfundedby third parties.
+

Reversion- All assetswithin the Memoriallegal structurewill revertwithout

compensation.All physicalassetstansferredfrom Memorialto a Novantaffiliate will be
returneduponreversionwithsut cornpensation.CCFIA shallhavethe optionto purchase
al[, but not lessthanall, assetsheldby Novant outsideaf the Memoriallegalstructffie
that are locatedin the Countiesof Chatham,Bryan,andEffinghamfor fair rnarketvalue.
Bond Security - In lieu of a bondguaranty,Novantrvill causeMernorialto maintain
to theextentneededto rernedyanyuncuredpayment
rsssrvefundsthat canbe accessed
defaultunderthe 20|2A,MTI. The cornbinedbalanceof suchreservefundswill at all
underthe 20124 MTL Tiris
indebtedness
timesequalor exceedthEoutstandingprincipal
2AI2!,
upon
will
in
of
the
bonds.Exceptas
terminate
redenption full
obligation
prohibitedby the MTI or relatedagreements,
the reservefundswili be investedpursuani
Company.
agreernent
with NovantAssetManagernent
t0 a management

FundFlow- Subject
to reserve
andliquidityreguirements
ilr the20124MTI,
contained
therewill beno restriction
onMemorial'sabilitvto ffan$fsrcashto NovantHealthor its
affiliates.
Major Constr*ction-- Memcrialwill prqvide60daynoticeof newmaterial
construction/improvements.
Memorialwill obtainCCFIA'spl'iorwitten consent,
notto
beunreasonably
witlrlield,for anydemolition
ofbuildingsor otherrnaterial
or destruction
rnajorassets.

7. Roporting* Memorialto submitQuarterly

reportsts CCI{A (in thefonn provided
duringpreviousnegotiations).
8. ConditlonalClosing.*Newleaseis conditioned
materialchanges
onCCHAapproving
reasonably
a
to theDrall MSAthatwould
to have m'aterial
beexpected
adversE
effecton
CCHAor theHospital,

SesnandAgreed:

CHATHAM COTINTYHOSPITALAUTFIORITY

ur,-/ku-,"l+funDonWaters,
Chair
Date:4'l{,/b

MEMORIALFIEALTH.INC.
By:
I{amyHaslam,Chair

EXHIBIT "B"
Transmittal Letter

(Seeattached)

8142328v2

CHATHAMCOLINTYHOSPITALAUTHORITY
4700WatersAvenue
Savannah.
GA 31404
April15,2016
PeterS. Brunstetter
ExecutiveVice Presidentand
ChiefLegalOfficer
NovantHealth
2085FrontisPlazaBoulevard
Salem,NC 27103
DearMr. Brunstetter:
this week,whicll'I havesignedon behalfof
Enclosedis the letterof intentwe discussed
the Authority. The final leasemust providethat any of the referencedchangesto the NICU and
trauma serviceswill also require Authority consent,with the only limitation being that such
consentshallnot be unreasonably
withheld.
We look forwardto concludinstheleaseon this basis.

Sincerely,
CHATHA]\4COI.INTYHOSPITALAUTHORITY

l\'*'

knfr:LM-

Don Waters,Chairman

cc:

Carl S. Armato
R. JonathanHart
Art Dana

8742471v2