##### 



Exhibit 10.3
 (Multicurrency  Cross Border)
 
 International Swap Dealers Association, Inc.
 MASTER AGREEMENT
 dated as of November 29, 2007
 MERRILL LYNCH CAPITAL 
SERVICES, INC.
(Party A)
    
    PSYCHIATRIC SOLUTIONS, INC.
(Party B)
   1. Interpretation
 Definitions.
 Inconsistency.
 Single Agreement.
 2. Obligations
 General Conditions.
    2046268.1by International Swap Dealers Association, Inc.




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Change of Account.
 Netting.
     Deduction or Withholding for Tax.
 Gross-Up.
       2
    
    ISDA® 1992




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Liability. If:
     Default Interest; Other Amounts.
 3. Representations
  (a) Basic Representations.
 Status.
 Powers.
 No Violation or Conflict.
 Consents.
 Obligations Binding.
 3
    
    ISDA® 1992




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Absence of Certain Events.
 Absence of Litigation.
 Accuracy of Specified Information.
 Payer Tax Representation.
 Payee Tax Representations.
 4. Agreements
  Furnish Specified Information.
     Maintain Authorisations.
 Comply with Laws.
 Tax Agreement.
 Payment of Stamp Tax.
 4
    
    ISDA® 1992




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5.
Events of Default and Termination Events
 Events of Default.
 Failure to Pay or Deliver.
 Breach of Agreement.
 Credit Support Default.
    Misrepresentation.
 Default under Specified Transaction.
 Cross Default.
 5
    
    ISDA® 1992




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Bankruptcy.
  Merger Without Assumption.
   Termination Events.
 6
    

ISDA® 1992




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Illegality.
   Tax Event.
 Tax Event Upon Merger.
 Credit Event Upon Merger.
 Additional Termination Event.
 Event of Default and Illegality.
 7
    

ISDA® 1992




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6. Early Termination
 Right to Terminate Following Event of Default.
 Right to Terminate Following Termination Event.
 Notice.
 Transfer to Avoid Termination Event.
   Two Affected Parties.
 Right to Terminate.
    8
    
    ISDA® 1992




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(c)
    
    Effect of Designation.
   (d)
    
    Calculations.
 Statement.
 Payment Date.
 Payments on Early Termination.
 Events of Default.
 First Method and Market Quotation.
 First Method and Loss.
 Second Method and Market Quotation.
 9
    
    ISDA® 1992




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Second Method and Loss.
 Termination Events.
 One Affected Party.
 Two Affected Parties.
    Adjustment for Bankruptcy.
 Pre-Estimate.
 10
    
    ISDA® 1992




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7. Transfer
     8. Contractual Currency
 Payment in the Contractual Currency.
 Judgments .
 Separate Indemnities.
 Evidence of Loss.
 11
    
    ISDA® 1992




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9. Miscellaneous
 Entire Agreement.
 Amendments .
 Survival of Obligations.
 Remedies Cumulative.
 Counterparts and Confirmations.
   No Waiver of Rights.
 Headings.
 10. Offices; Multibranch Parties
    11. Expenses
  12
    
    ISDA® 1992




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12. Notices
 Effectiveness.
       Change of Addresses.
 13. Governing Law and Jurisdiction
 Governing Law.
 Jurisdiction.
    Service of Process.
 13
    
    ISDA® 1992




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Waiver of Immunities.
 14. Definitions
  Additional Termination Event
 Affected Party
 Affected Transactions
 Affiliate
 Applicable Rate
     Burdened Party
 Change in Tax Law
 consent
 Credit Event Upon Merger
 Credit Support Document
 Credit Support provider
 Default Rate
 14
    
    ISDA® 1992




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Defaulting Party
 Early Termination Date
 Event of Default
 Illegality
 Indemnifiable Tax
 law lawful unlawful
 Local Business Day
 Loss
 Market Quotation
 15
    
    ISDA® 1992




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Non-default Rate
 Non-defaulting Party
 Office
 Potential Event of Default
 Reference Market-makers
 Relevant Jurisdiction
 Scheduled Payment Date
 Set-off
 Settlement Amount
   Specified Entity
 16
    
    ISDA® 1992




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Specified Indebtedness
 Specified Transaction
 Stamp Tax
 Tax
 Tax Event
 Tax Event Upon Merger
 Terminated
Transactions
 Termination Currency
 Termination Currency Equivalent
 Termination Event
 Termination Rate
 Unpaid Amounts
 17
    
    ISDA® 1992




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IN WITNESS WHEREOF
 MERRILL LYNCH CAPITAL SERVICES, INC.
    
    
    
    PSYCHIATRIC SOLUTIONS, INC.By:
    
    /s/ Angelina Lopes
    
    
    
    By:
    
    /s/ Brent TurnerName:
    
    
    
    
    
    
    
    Name:
    
    Brent TurnerTitle:Date:
    
    Authorized Signatory
    
    
    
    
    
    Title:
    
    Executive Vice President, Finance and
Administration
 18




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EXECUTION DOCUMENT
 SCHEDULE
 to the
 Master Agreement
 dated as of November 29, 2007
 between
 MERRILL LYNCH CAPITAL SERVICES, INC.,
a corporation organized under the laws of the State of Delaware
(Party A)
 and
 PSYCHIATRIC SOLUTIONS, INC.,
a corporation organized under the laws of the State of Delaware
(Party B)
 Part 1
 Termination Provisions
  Specified Entity
 Section 5(a)(v),
    
    Not ApplicableSection 5(a)(vi),
    
    Not ApplicableSection 5(a)(vii),
    
    Not ApplicableSection 5(b)(iv),
    
    Not Applicable
  Section 5(a)(v),
    
    Not ApplicableSection 5(a)(vi),
    
    Not ApplicableSection 5(a)(vii),
    
    Not ApplicableSection 5(b)(iv),
    
    Not Applicable
 Specified Transaction
 Cross Default
 19




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Specified Indebtedness
 Threshold Amount
 Credit Event Upon Merger
 (i)
    
    the party, any Credit Support Provider of the party or any Specified Entity
of the party consolidates or amalgamates with, or merges with or into, or transfers
all or substantially all its assets (or any substantial part of the assets comprising
the business of that party) to, or reorganizes, incorporates, reincorporates, or
reconstitutes into or as, another entity, or another entity consolidates or
amalgamates with, or merges with or into, or transfers all or substantially all its
assets to, or reorganizes, incorporates, reincorporates, reconstitutes into or as,
such party; or(ii)
    
    any person or entity acquires directly or indirectly the beneficial ownership
of equity securities having the power to elect a majority of the board of directors of
the party, any Credit Support Provider of the party or any applicable Specified Entity
of the party; or
 Automatic Early Termination not
 Payments on Early Termination.
 (i)
    
    Market Quotation will apply.(ii)
    
    The Second Method will apply.
 20




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Termination Currency
 Additional Termination Event
 The occurrence of any of the events set out in clauses (i) and (ii) immediately below shall
constitute the occurrence of an Additional Termination Event pursuant to Section 5(b)(v),
and Party B shall be the sole Affected Party.
 (i)
    
    (A)
    
    (x)
    
    the lending and other credit extension commitment of each lender and
other credit extension provider under the Credit Agreement have been terminated in full
and each loan and other extension of credit made pursuant to the Credit
Agreement have been repaid in full or refinanced; providedthat a refinancing of all or
any portion of the Credit Agreement shall not constitute an Additional Termination
Event if such refinancing indebtedness (i) is secured by substantially the same
Collateral as the Collateral immediately prior to such refinancing, (ii) does not
contain materially weaker financial covenants and (iii) Party Bs swap obligations to
Party A continue to be secured equally and ratably with Party Bs obligations to the
lenders under such credit facility; or
 (y)
    
    all or substantially all of the collateral (if
any) securing the obligations of Party B under the Credit Agreement is
released prior to the date on which no Transaction is outstanding under
this Agreement and no amount is owing to Party A under this Agreement.
 (ii) If at any time any of the priorities of payment accorded to Party A under the
Credit Agreement (as defined herein) and the Security Agreement (as defined herein)
with respect to proceeds from the Collateral (as defined herein) is lowered from that
accorded to Party A under Section 2.13 of the Credit Agreement (as defined herein, but
solely for the purposes of this clause (ii), without giving effect to any amendment to
such Credit Agreement after the date of this Agreement) as at the date of this
Agreement. As used herein, the terms Collateral and Security Agreement shall have
the meanings assigned respectively thereto under the Credit Agreement (as such term is
defined herein).
 21




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Part 2
 Tax Representations
 Payer Representations.
  Payee Representations.
 (i)
    
    The following representation applies to Party A:-Party A is a corporation organized under the laws of the State of Delaware.(ii)
    
    The following representation applies to Party B:-Party B is a corporation organized under the laws of the State of Delaware.
 22




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Part 3
 Agreement to Deliver Documents
   Party Required toDeliver Document
    
    Form/Document/Certificate
    
    Date by Which to be DeliveredParty A/Party B
    
    A correct, complete and
executed U.S. Internal
Revenue Service Form W-9
(or any successor
thereto), including
appropriate attachments,
that eliminates U.S.
federal backup
withholding tax on
payments under this
Agreement.
    
    (i) Before the first Payment
Date under this Agreement,
(ii) promptly upon
reasonable demand by the
other party, and (iii)
promptly upon learning that
any such form previously
provided by such party has
become obsolete or
incorrect.
  Party Required
    
    
    
    
    
    Covered byto Deliver
    
    Form/Document/
    
    Date by which
    
    Section 3(d)Document
    
    Certificate
    
    to be Delivered
    
    RepresentationParty A/Party B.
    
    Annual audited
financial
statements (or, in
the case of Party
A, of its Credit
Support Provider)
prepared in
accordance with
generally accepted
accounting
principles in the
country in which
the party (or, in
the case of Party
A, its Credit
Support Provider)
is organized.
    
    Promptly after
request.
    
    Yes.Party A/Party B.
    
    Quarterly unaudited
financial
statements (or, in
the case of Party
A, of its Credit
Support Provider)
prepared in
accordance with
generally accepted
accounting
principles in the
country in which
the party (or, in
the case of Party
A, its Credit
Support Provider)
is organized.
    
    Promptly after
request.
    
    Yes.Party A/Party B.
    
    Credit Support
Document, if any,
specified in Part 4
of the Schedule,
such Credit Support
Document being duly
executed if
required.
    
    Concurrently with
the execution of
this Agreement.
    
    No.Party A/Party B.
    
    Certified copies of
the resolution(s)
of its board of
directors or other
documents
authorizing the
execution and
delivery of this
Agreement.
    
    Concurrently with
the execution of
this Agreement.
    
    Yes.
 23




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Party Required
    
    
    
    
    
    Covered byto Deliver
    
    Form/Document/
    
    Date by which
    
    Section 3(d)Document
    
    Certificate
    
    to be Delivered
    
    RepresentationParty A/Party B.
    
    Incumbency
certificate or
other documents
evidencing the
authority of the
party entering into
this Agreement or
any other document
executed in
connection with
this Agreement.
    
    Concurrently with
the execution of
this Agreement or
of any other
documents executed
in connection with
this Agreement.
    
    Yes.
 24




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Part 4
 Miscellaneous
 Addresses for Notices:
 Party A
 Address:
    
    Merrill Lynch World Headquarters2 World Financial Center, 6thFloorNew York, New York 10281Attention:
    
    Swap GroupFacsimile No.:
    
    646-805-0218                     Telephone No.:  212 236-8709
   GMI Counsel
Merrill Lynch World Headquarters
4 World Financial Center, 12 th Floor
New York, New York 10080
Attention: Swaps Legal
Facsimile No.: 212 449-6993
 Party B
 Address:
    
    Psychiatric Solutions, Inc.6640 Carothers Parkway, Suite 500Franklin, Tennessee 37067Attention:
    
    Brent TurnerFacsimile No.:
    
    615-312-5711                    Telephone No.:  615-312-5746
  Process Agent.
   Offices.
 Multibranch Party.
   Calculation Agent.
 25




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Credit Support Document
   Credit Support Provider.
   Governing Law.
 Netting of Payments
 Affiliate
 26




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Part 5
 Other Provisions
 Financial Statements.
 Additional Representations
    Non-Reliance.
 Transfer.
 27




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(4)
    
    Method of Notice.Section 12(a)(ii) of the Master Agreement is deleted in its entirety.(5)
    
    Jurisdiction.
    (6)
    
    Set-off.
    Escrow.
 28




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Consent to Recording
 Waiver of Jury Trial.
 Secured Party.
 Swap Contract & Loan Document.
 29




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EXHIBIT A
 GUARANTEE OF MERRILL LYNCH & CO., INC.
 FOR VALUE RECEIVED Psychiatric Solutions, Inc. Merrill Lynch Capital Services,
Inc.
 This Guarantee shall be one of payment and not collection and shall be irrevocable in respect of
any payment obligations incurred by the Obligor prior to its termination as further provided below.
    payment
 1




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MERRILL LYNCH & CO., INC.By:Name:Title:Date: 2




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COVER STATEMENT
CLIENT/COUNTERPARTY RELATIONSHIP




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GENERIC RISKS ASSOCIATED WITH
OVER-THE-COUNTER FX AND DERIVATIVE TRANSACTIONS
  Market risk
 Credit risk
 Funding risk
 Operational risk




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This brief statement does not purport to disclose all of the risks and other material
considerations associated with OTC Transactions. You should not construe this generic disclosure
statement as business, legal, tax or accounting advice or as modifying applicable law. You should
consult your own business, legal, tax and accounting advisers with respect to proposed OTC
Transactions and you should refrain from entering into any OTC Transaction unless you have fully
understood the terms and risks of the transaction, including the extent of your potential risk of
loss.