8/18/2019 Memorial Letter of Intent

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RESOLI]TIOI\

OF TIIE

MEMBERS

OF TIIE

CHATHAM

COUNTY

HOSPITAL

AUTIIORITY

Effective

as of April 15r2016

WHEREAS,

The

Chatham

County Hospital

Authority

(the "Authority") is

a

public body

corporate

and

politic

created

and existing

pursuant

o the Hospital

Authorities

Law,

O.C.G.A.

g3I-7-70

et. seq

and established

nd reconstituted

y Chatham

County

under

resolutions

f the

Commissioners

f Chatham

CountY;

WHEREAS,

the Authority

owns Memorial

Medical

Center,

an

acute

care

general

hospital

ocated

n Savannah,

eorgia;

WHER.EAS,

the Authority

is a

party

to

that

certain Amended

and Restated

Lease

Agreement

by

and

among

Memorial

Health University

Medical

Center,

Inc.

and Mernorial

Health,

nc.,

dated

as

of May

I,2004,

as

amendedMay

1,

2012

Ihe "Lease");

WHEREAS,

Memorial

Health

nc. s

in discussions

ith Novant

Health,

nc.

("Novant")

with

regard

o

potential

partnership

hat would

require

an

amendment

o

the Lease;

WHEREAS,

the

Authority

has

been

askedby Novant

to review

and

agree o

certainnon-

binding

specific

concepts

o

be addressed

n an

amendment

o the Lease,

as set

forth

in the letter

attached

hereto

at Exhibit

"A"

(the

"Novant

Letter");

and

WHEREAS,

Novant

has stated

that

execution

of

the non-binding

Novant

Letter

is a

condition

precedent o

further

discussions

and negotiations

between

Novant

and

the Authority

regarding

a

proposed

mendment

o the Lease.

NOW TIIEREFORE, THE AUTIIORITY HEREBY RESOLVES AS FOLLOWS:

Approval

of Certain

Correspondence

NOW,

THEREFOR.E,

BE

IT RESOLVED,

that

the Authority

doeshereby

approve

he

transmittal

etter

in substantially

he same

orm

attached

hereto

as Exhibit

"B"

(the

"Transmittal

Letter")

and

he

Novant

Letter;

FUR.THER

R.ESOLVED,

the appropriate

fficers

or members

of

the Authority

arehereby

authorized

o execute

and

deliver

he Novant Letter;

and

FURTHER RESOLVED, the appropriate fficersor membersof the Authority arehereby

authorized

o execute

nd

deliver

he

Transmittal

Letter'

Ratification

of Prior

Acts

FURTHER

RESOLVED,

that all

prior

actions

aken

on the Authority's

behalf

by

the

Authority's

members,

directors

and officers

in furtherance

of

the foregoing

resolution

are hereby

ratified,

adopted

ndapproved

n all respects.

8142328v2

8/18/2019 Memorial Letter of Intent

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EXIIIBIT

"A"

l\ovant Letter

(See

attached)

8142328v2

8/18/2019 Memorial Letter of Intent

3/8

,lu;

WSVAH€

I-IHALTH

?0$$F*or*id la;:eauku{rrl

,Wi,nsiu$

ult'i[,

']C?]1O]

nqvanth*atttrr'.tr$

April12;?016:

Hapl"/,t{bslam

Chair

Mennsrial

ealth"

nc.

47CI0Waters

vs,

Sav*m+ah

A3'14CI4

IvIr.

Bon Wat€is

Ghait

Chathnmarrntf 'trssBit*I uthori$

4700trV,llters

vseqs

SavannahrGA

t404

cci C'4r1.

. ..{rgaats

Pigqid.epf,&,GfiQ

AftDa$a

R,

Jonat-hss,Ilart

Fe4.r:Sentlernenl

Ttrank or

for takirrs he

ime ast

week o

discass

he

proposed

artnsrship

etweerr

o-vant

lil;itlt;t*,

and

Melr,orial

{oam

In.sorrnegtionit&

he,

r+l

sacliolr,

ovant

Health

has

req$e$ied

ev

amer,tdrnent$

o theLeaseiberweon

dbffiorial'a*d

he

Chatham

oqnfy

Hospital

aiitUtirfrl.

ghe

atrached -chpduio

rqllrms€nts

he

Key

,ffiilF

$at

*S

beli,oYe

trlo

.4rties

hd$ie

tentativo,ly

g-reed

O

Vitk

e$pect

$ thB

pfopon+d

;easeArnoadarent;

Iitlie,attac.l KoyT+rnu Tsfrl$ptlcsundqf$tand,ing.f

y

urorganizatiQn'regarding

oncppt*

o

;;ri;d"d

iott*

fu*r*

Asrendme*,

fea*e

igna*opy

oflthis

etterint]1e,s.ry.ace

ndicated

t*1"*t*O:umail

a,copy

f'rhe

ignecl'letterto

leat

p, ,r'{si-e11rerqpyfltt11i91t\0ry,

nQea

*ig$"r{l*r;n"m

u

orgapizafon'hss'brs{r,receiti+

e

will

ea1h

"it.*1T11:19"1ctive

oi*o*it

,.foa*Orialize:ti#Se

bncept$

lrapropcseAl"e{o,

{ruenrl:rull,

o

f-1$y-*1i1bs

teealiy

bCIund

lth.r,es,peot

tr'theKey

Ternrs,ontilned

n

this

pttef

untit

he

paftieshava'

$sbotieted

nd

dulysignedthe

ease mendftont'

Novailt

Fleaith

ontinu$s

o ook

ofwardto

he

partnershijl

vith

Memarial

rtclrto

rovi

8/18/2019 Memorial Letter of Intent

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SCHEI}ULE

A

Seeond

Amendment

o Arnendedand

Restated

Lease

Betrvcen

Chatham

County Hospital

Authority

and

Memorial

Health,

n+..

Kev Terrns

1. Term

-

Reset erm o

40

years

at closing. Term automaticatly

esets

o

40 years.

n l0'h

anniversary

f

closingandevery

5tl'year hereafter nless

either

party

provides

notice

of

nonrenewal.

Novanthas ieht

to unwindMSA with Mernorial

f lease

erm falls

below

20

years.

2. Continudtion

f

Seruices

NICU andTraumaServims

Memorial ill

rtotreducdlevet

NICU o Level

2

or rednce evel Trauma

o

Level2 without pproval

rom

CCHA. CCI-IA

will not

withhold

pprovalf reduotions commercially

easonable

n light

of

health are narket

onditionn.

n

theevent f

dispute, ominercial

reasonableness

f

reduction

s subjecto binding

rbitration.

b. Indigent

Care

--Menroriai

o continue c

prnvide

ndigent

care o in cornpliance

with

Intergovenmental

ontract.

o. Graduate

Medical Education Memorial

o continue

o

participate

n

CME

to

ilre

extent unded y third

parties.

Reversion

All

assets

ithin

the Memorial egal structure

will revert

without

compensation.

ll

physical

assetsansferred rom

Memorial

o a Novantaffiliate will

be

returned

pon eversionwithsut

cornpensation. CFIA

shallhave he

option

o

purchase

al[, but not ess hanall, assets

eldby Novant outside

af the Memorial

egal structffie

that

are ocated n

the

Counties f

Chatham, ryan,

and

Effingham

or fair rnarketvalue.

Bond Security

-

In lieu of a bond

guaranty,

ovant

vill cause

Mernorial o maintain

rsssrve

unds

hat

can

be

accessed

o the extentneeded

o rernedy

nyuncured

ayment

defaultunder he20|2A,MTI. The cornbined alance f such eserveundswill atall

timesequalor

exceedhEoutstandingprincipalndebtedness

nder

he 20124 MTL Tiris

obligation

will

terminate

pon

edenption

n

full

of the

2AI2 ,

bonds.

Exceptas

prohibited

by

the

MTI

or related

greements,he reserve unds

wili be nvested

ursuani

t0 a management

greernent ith NovantAssetManagernent

ompany.

+

4

8/18/2019 Memorial Letter of Intent

5/8

{

FundFlow

Subject

o reserve nd iquidity

eguirements

ontained

lr the20124

MTI,

therewill beno

restriction

n Memorial's bilitv

o ffan$fsr

ash

o NovantHealth

r ts

affiliates.

Major

Constr*ction

-

Memcrialwill

prqvide

0day

notice

f newmaterial

construction/improvements.

emorial

ill

obtain

CCFIA's

l'ior

witten

consent,ot o

beunreasonablyitlrlield,

or anydemolition

r destruction

fbuildings

r other naterial

rnajor ssets.

Roporting

Memorial

o submit

Quarterly

eportss

CCI{A

(in

the

onn

provided

during

previous

egotiations).

Conditlonal

Closing.*Newease

s conditionedn CCHA

approving aterial

hanges

to theDrall MSA hatwouldeasonablyeexpectedo have m'aterialdversEffect n

CCHAor he

Hospital,

7.

8.

8/18/2019 Memorial Letter of Intent

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Sesn ndAgreed:

CHATHAM COTINTYHOSPITALAUTFIORITY

By:

I{amyHaslam,Chair

ur,

/ku-,"

+fun-

DonWaters, hair

Date:

' l { , /b

MEMORIAL

IEALTH.INC.

8/18/2019 Memorial Letter of Intent

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EXHIBIT

"B"

Transmittal Letter

(See

attached)

8142328v2

8/18/2019 Memorial Letter of Intent

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CHATHAMCOLINTY OSPITAL

UTHORITY

4700Waters

venue

Savannah.A 31404

April

15,2016

PeterS. Brunstetter

Executive

ice President nd

ChiefLegal

Officer

NovantHealth

2085Frontis

PlazaBoulevard

Salem, C

27103

DearMr.

Brunstetter:

Enclosed

s

the

etterof intentwe discussedhis week,

whicll'

havesignedon

behalfof

the

Authority. The final leasemust

provide

hat any of

the referenced

hangeso

the NICU and

trauma serviceswill also

require Authority consent,with

the only

limitation being

that such

consent hallnot be unreasonably ithheld.

We

ook forward o concludinshe ease

n

his basis.

Sincerely,

CHATHA]\4COI.INTYHOSPITALAUTHORITY

l\'*' knfr:LM-

Don Waters,

Chairman

cc:

Carl

S.

Armato

R. JonathanHart

Art Dana

8742471v2