Not happy in place surrounded by sick (10)
I believe the answer is:
displeased
'not happy' is the definition.
(I've seen this before)
'place surrounded by sick' is the wordplay.
I cannot really understand how this works, but
'place' could be 'pl' (abbreviation used in postal addresses) and 'pl' is found in the answer.
'sick' could be 'diseased' (I've seen this before) and 'diseased' is present in the remaining letters.
No letters remain.
This explanation may well be incorrect...
'in' acts as a link.
(Other definitions for displeased that I've seen before include "Upset" , "Not happy" , "Angry" , "Furious" .)