Document:

Exhibit 10(a)

 

 

 

$800,000,000

CREDIT AGREEMENT

Dated as of November 16, 2006

among

Tenet
Healthcare Corporation

as Borrower

and

The
Lenders and Issuers Party Hereto

and

Citicorp
USA, Inc.

as Administrative Agent

* * *

Bank of
America, N.A.

as Syndication Agent

* * *

Citigroup Global Markets Inc.

and

Banc of
America Securities LLC

as Joint Lead Arrangers and Joint Lead Book
Runners

*   *   *

General Electric Capital Corporation

The Bank of Nova Scotia

as Co-Documentation Agents

Weil,
Gotshal & Manges LLP

767 Fifth Avenue

New York, New York 10153-0119

 

Table of Contents

	
  ARTICLE I

  	
   

  	
  DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.1

  	
  Defined Terms

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.2

  	
  Computation of Time Periods

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.3

  	
  Accounting Terms and Principles

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.4

  	
  Conversion of Foreign Currencies

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.5

  	
  Certain Terms

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  THE FACILITY

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.1

  	
  The Revolving Credit Commitments

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.2

  	
  Borrowing Procedures

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.3

  	
  Swing Loans

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.4

  	
  Letters of Credit

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.5

  	
  Reduction and Termination of the Revolving Credit
  Commitments

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.6

  	
  Repayment of Loans

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.7

  	
  Evidence of Debt

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.8

  	
  Optional Prepayments

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.9

  	
  Mandatory Prepayments

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.10

  	
  Interest

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.11

  	
  Conversion/Continuation Option

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.12

  	
  Fees

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.13

  	
  Payments and Computations

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.14

  	
  Special Provisions Governing Eurodollar Rate Loans

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.15

  	
  Capital Adequacy

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.16

  	
  Taxes

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.17

  	
  Substitution of Lenders

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.18

  	
  Incremental Facility

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  CONDITIONS TO LOANS AND LETTERS OF CREDIT

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.1

  	
  Conditions Precedent to Initial Loans and Letters of
  Credit

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.2

  	
  Conditions Precedent to Each Loan and Letter of
  Credit

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.3

  	
  Determinations of Initial Borrowing Conditions

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.4

  	
  Conditions Precedent to Each Incremental Credit
  Extension Date

  	
   

  	
  58

  
						

 i
 

Table of Contents

(Continued)

	
  ARTICLE IV

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.1

  	
  Corporate Existence; Compliance with Law

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.2

  	
  Corporate Power; Authorization; Enforceable
  Obligations

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.3

  	
  Subsidiaries; Borrower Information

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.4

  	
  Financial Statements

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.5

  	
  Material Adverse Change

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.6

  	
  Solvency

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.7

  	
  Litigation

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.8

  	
  Taxes

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.9

  	
  Full Disclosure

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.10

  	
  Margin Regulations

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.11

  	
  No Burdensome Restrictions; No Defaults

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.12

  	
  Investment Company Act; Public Utility Holding
  Company Act

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.13

  	
  Compliance with Health Care Laws

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.14

  	
  Use of Proceeds

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.15

  	
  Insurance

  	
   

  	
  65

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.16

  	
  Labor Matters

  	
   

  	
  65

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.17

  	
  ERISA

  	
   

  	
  65

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.18

  	
  Environmental Matters

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.19

  	
  Intellectual Property

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  FINANCIAL COVENANTS

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.1

  	
  Minimum Fixed Charge Coverage Ratio

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.2

  	
  Capital Expenditures

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
  REPORTING COVENANTS

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.1

  	
  Financial Statements

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.2

  	
  Default Notices

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.3

  	
  Litigation

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.4

  	
  Notices under Related Documents

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.5

  	
  SEC Filings

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.6

  	
  Labor Relations

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.7

  	
  ERISA Matters

  	
   

  	
  70

  
						

 

 ii
 

Table of Contents

(Continued)

	
   

  	
  Section 6.8

  	
  Environmental Matters

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.9

  	
  Borrowing Base Determination

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.10

  	
  Tax Reporting

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.11

  	
  Health Care Reportable Event

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.12

  	
  Other Information

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.1

  	
  Preservation of Corporate Existence, Etc

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.2

  	
  Compliance with Laws, Etc

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.3

  	
  Conduct of Business

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.4

  	
  Payment of Taxes, Etc

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.5

  	
  Maintenance of Insurance

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.6

  	
  Access

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.7

  	
  Keeping of Books

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.8

  	
  Maintenance of Properties, Etc

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.9

  	
  Application of Proceeds

  	
   

  	
  74

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.10

  	
  Additional Collateral and Guaranties

  	
   

  	
  74

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.11

  	
  Cash Management

  	
   

  	
  74

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.1

  	
  Indebtedness

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.2

  	
  Liens, Etc

  	
   

  	
  78

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.3

  	
  Investments

  	
   

  	
  78

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.4

  	
  Sale of Assets

  	
   

  	
  80

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.5

  	
  Restricted Payments

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.6

  	
  Prepayment and Cancellation of Indebtedness

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.7

  	
  Restriction on Fundamental Changes; Acquisitions

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.8

  	
  Change in Nature of Business

  	
   

  	
  82

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.9

  	
  Transactions with Affiliates

  	
   

  	
  82

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.10

  	
  Limitations on Restrictions on Subsidiary
  Distributions; No New Negative Pledge

  	
   

  	
  82

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.11

  	
  Modification of Constituent Documents

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.12

  	
  Margin Regulations

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.13

  	
  No Speculative Transactions

  	
   

  	
  83

  
						

 

 iii
 

Table of Contents

(Continued)

	
   

  	
  Section 8.14

  	
  Compliance with ERISA

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.15

  	
  Environmental

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.1

  	
  Events of Default

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.2

  	
  Remedies

  	
   

  	
  85

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.3

  	
  Actions in Respect of Letters of Credit

  	
   

  	
  85

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.4

  	
  Rescission

  	
   

  	
  86

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
  THE ADMINISTRATIVE AGENT

  	
   

  	
  86

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.1

  	
  Authorization and Action

  	
   

  	
  86

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.2

  	
  Administrative Agent’s Reliance, Etc

  	
   

  	
  87

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.3

  	
  Posting of Approved Electronic Communications

  	
   

  	
  88

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.4

  	
  The Administrative Agent Individually

  	
   

  	
  89

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.5

  	
  Lender Credit Decision

  	
   

  	
  89

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.6

  	
  Indemnification

  	
   

  	
  89

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.7

  	
  Successor Administrative Agent

  	
   

  	
  90

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.8

  	
  Concerning the Collateral and the Collateral
  Documents

  	
   

  	
  90

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.9

  	
  Collateral Matters Relating to Related Obligations

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.1

  	
  Amendments, Waivers, Etc

  	
   

  	
  92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.2

  	
  Assignments and Participations

  	
   

  	
  95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.3

  	
  Costs and Expenses

  	
   

  	
  98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.4

  	
  Indemnities

  	
   

  	
  99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.5

  	
  Limitation of Liability

  	
   

  	
  100

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.6

  	
  Right of Set-off

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.7

  	
  Sharing of Payments, Etc

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.8

  	
  Notices, Etc

  	
   

  	
  102

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.9

  	
  No Waiver; Remedies

  	
   

  	
  104

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.10

  	
  Binding Effect

  	
   

  	
  104

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.11

  	
  Governing Law

  	
   

  	
  104

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.12

  	
  Submission to Jurisdiction; Service of Process

  	
   

  	
  104

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.13

  	
  Waiver of Jury Trial

  	
   

  	
  105

  
						

 iv
 

Table of Contents

(Continued)

	
  

  	
  Section 11.14

  	
  Marshaling; Payments Set Aside

  	
   

  	
  105

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.15

  	
  Section Titles

  	
   

  	
  105

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.16

  	
  Execution in Counterparts

  	
   

  	
  106

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.17

  	
  Entire Agreement

  	
   

  	
  106

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.18

  	
  Confidentiality

  	
   

  	
  106

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.19

  	
  Patriot Act Notice

  	
   

  	
  106

  

 

 v
 

Table of Contents

(Continued)

Schedules

	
  Schedule I

  	
   

  	
  —

  	
   

  	
  Revolving Credit Commitments

  
	
  Schedule II

  	
   

  	
  —

  	
   

  	
  Applicable Lending Offices and Addresses for Notices

  
	
  Schedule 1.1(a) 

  	
   

  	
  —

  	
   

  	
  Excluded Subsidiaries

  
	
  Schedule 2.4

  	
   

  	
  —

  	
   

  	
  Existing Letters of Credit

  
	
  Schedule 4.2

  	
   

  	
  —

  	
   

  	
  Consents

  
	
  Schedule 4.3

  	
   

  	
  —

  	
   

  	
  Ownership of Subsidiaries

  
	
  Schedule 4.7

  	
   

  	
  —

  	
   

  	
  Litigation

  
	
  Schedule 4.8

  	
   

  	
  —

  	
   

  	
  Taxes

  
	
  Schedule 4.13

  	
   

  	
  —

  	
   

  	
  Compliance with Health Care Laws

  
	
  Schedule 4.16

  	
   

  	
  —

  	
   

  	
  Labor Matters

  
	
  Schedule 4.17

  	
   

  	
  —

  	
   

  	
  List of Plans

  
	
  Schedule 4.18

  	
   

  	
  —

  	
   

  	
  Environmental Matters

  
	
  Schedule 8.2

  	
   

  	
  —

  	
   

  	
  Existing Liens

  
	
  Schedule 8.3

  	
   

  	
  —

  	
   

  	
  Existing Investments

  
	
  Schedule 8.4

  	
   

  	
  —

  	
   

  	
  Asset Sales

  

Exhibits

	
  Exhibit A

  	
   

  	
  —

  	
   

  	
  Form of Assignment and Acceptance

  
	
  Exhibit B

  	
   

  	
  —

  	
   

  	
  Form of Revolving Credit Note

  
	
  Exhibit C

  	
   

  	
  —

  	
   

  	
  Form of Notice of Borrowing

  
	
  Exhibit D

  	
   

  	
  —

  	
   

  	
  Form of Swing Loan Request

  
	
  Exhibit E

  	
   

  	
  —

  	
   

  	
  Form of Letter of Credit Request

  
	
  Exhibit F

  	
   

  	
  —

  	
   

  	
  Form of Notice of Conversion or Continuation

  
	
  Exhibit G

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Counsel for the Loan Parties

  
	
  Exhibit H

  	
   

  	
  —

  	
   

  	
  Form of Guaranty

  
	
  Exhibit I

  	
   

  	
  —

  	
   

  	
  Form of Security Agreement

  
	
  Exhibit J

  	
   

  	
  —

  	
   

  	
  Form of Borrowing Base Certificate

  
	
  Exhibit K

  	
   

  	
   

  	
   

  	
  Form of Collection Deposit Account Agreement

  

 

 

 vi

Credit Agreement,
dated as of November 16, 2006, among Tenet Healthcare Corporation, a Nevada
corporation (the “Borrower”), the Lenders (as
defined below), the Issuers (as defined below), Citicorp USA, Inc. (“Citicorp”), as
agent for the Lenders and the Issuers (in such capacity, the “Administrative Agent”), Bank of America, N.A., as syndication
agent and General
Electric Capital Corporation and The Bank of Nova Scotia, as co-documentation
agents.

W i t n
e s s e t h:

Whereas, the Borrower
has requested that the Lenders and Issuers make available for the purposes
specified in this Agreement a revolving credit facility; and

Whereas, the Lenders
and Issuers are willing to make available to the Borrower such revolving credit
facility upon the terms and subject to the conditions set forth herein.

Now, Therefore, in
consideration of the premises and the covenants and agreements contained
herein, the parties hereto hereby agree as follows:

ARTICLE I

Definitions,
Interpretation and Accounting Terms

Section 1.1            Defined Terms

As used in this Agreement, the following terms have
the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined):

“Account” means,
collectively and without duplication: (i) any “account”
(as defined in the UCC), any accounts receivable (whether in the form of
payments for services rendered or goods sold), any “health-care
insurance receivables” (as defined in the UCC), any “payment intangibles” (as defined in the UCC) and all other
rights to payment and/or reimbursement of every kind and description, whether
or not earned by performance, (ii) all books and records pertaining to the
foregoing, (iii) all “supporting obligations”
(as defined in the UCC) in respect of the foregoing and (iv) all Proceeds of
any of the foregoing; provided, however,
that “Accounts” shall not include (a) rights to payment in respect of (1)
medical office building leases to physicians, (2) physician income guarantees,
or (3) Medicaid disproportionate share receivables, (b) any notes owed to the
Borrower or any of the Guarantors, which evidences indebtedness other than for
services rendered or goods sold and (c) proceeds of assets described in clause
(a) or (b) above.

“Account Debtor”
has the meaning given to such term in the UCC.

“Acquisition”
means any acquisition by the Borrower or any of its Subsidiaries of all or
substantially all of the assets or Stock of any Acquisition Target, or the
merger of any Acquisition Target with or into the Borrower or any Subsidiary of
the Borrower (and, in the case of a merger with (i) any Guarantor, with such
Guarantor being the surviving corporation and (ii) the Borrower, with the
Borrower being the surviving corporation).

“Acquisition Target”
means any Person or any operating division thereof subject to an Acquisition.

 “Administrative Agent” has the meaning specified in the
preamble to this Agreement.

“Advance Rate”
means (a) 85% in the case of Eligible Accounts that are not more than 120
days past the Discharge Date, (b) 50% in the case of Eligible Accounts
that are more than 120 days, but not more than 150 days, past the Discharge
Date and (c) 25% in the case of Eligible Accounts that are more than 150
days, but not more than 180 days, past the Discharge Date.

“Affected Lender”
has the meaning specified in Section 2.17
(Substitution of Lenders).

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly
controlling or that is controlled by or is under common control with such
Person.  For the purposes of this
definition, “control” means the possession of
the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities, by contract or
otherwise.

“Agent Affiliate”
has the meaning specified in Section 10.3(c)
(Posting of Approved Electronic Communications).

“Agreement”
means this Credit Agreement.

“Applicable Lending Office”
means, with respect to each Revolving Credit Lender, its Domestic Lending
Office in the case of a Base Rate Loan, and its Eurodollar Lending Office in
the case of a Eurodollar Rate Loan.

“Applicable Margin”
means (a) during the period commencing on the Closing Date and ending on
the date falling six (6) months after the Closing Date, with respect to (i)
Revolving Loans and Swing Loans maintained as Base Rate Loans, a rate equal to
0.75% per annum and (ii) Revolving Loans maintained as Eurodollar Rate
Loans, a rate equal to 1.75% per annum and (b) thereafter, as of any date
of determination, a per annum rate equal to the rate set forth below opposite
the applicable type of Loan and the then applicable Leverage Ratio (determined
on the last day of the most recent Fiscal Quarter for which Financial
Statements have been delivered pursuant to Section 6.1(a) or
(b) (Financial Statements))
set forth below:

	
  Leverage Ratio

  	
   

  	
  Base Rate

  Loans

  	
   

  	
  Eurodollar

  Rate Loans

  	
   

  
	
  Greater than or
  equal to 4.75 to 1

  	
   

  	
  0.75

  	
  %

  	
  1.75

  	
  %

  
	
  Less than 4.75 to 1

  	
   

  	
  0.50

  	
  %

  	
  1.50

  	
  %

  

 

Changes in the Applicable Margin resulting from a
change in the Leverage Ratio on the last day of any subsequent Fiscal Quarter
shall become effective as to all Revolving Loans and Swing Loans upon delivery
by the Borrower to the Administrative Agent of new Financial Statements
pursuant to Section 6.1(a) or (b) (Financial Statements),
as applicable.  Notwithstanding anything
to the contrary set forth in this Agreement (including the then effective
Leverage Ratio), if the 

 2
 

Borrower shall fail to deliver such Financial
Statements within any of the time periods specified in Section 6.1(a)
or (b) (Financial
Statements), the Applicable Margin from and including the 46th day after the end of such Fiscal Quarter or
the 91st day after the end of such Fiscal Year, as the
case may be, to but not including the date the Borrower delivers to the
Administrative Agent such Financial Statements shall equal the highest possible
Applicable Margin provided for by this definition.

“Approved Deposit Account”
means a Deposit Account that is the subject of an effective Deposit Account
Control Agreement and that is maintained by any Loan Party with a Deposit
Account Bank.  “Approved
Deposit Account” includes all monies on deposit in a Deposit Account
and all certificates and instruments, if any, representing or evidencing such
Deposit Account.

“Approved Electronic
Communications” means each notice, demand, communication,
information, document and other material that any Loan Party is obligated to,
or otherwise chooses to, provide to the Administrative Agent pursuant to any
Loan Document or the transactions contemplated therein, including (a) any
supplement to the Guaranty, any joinder to the Security Agreement and any other
written Contractual Obligation delivered or required to be delivered in respect
of any Loan Document or the transactions contemplated therein and (b) any
Financial Statement, financial and other report, notice, request, certificate
and other information material; provided, however, that, “Approved Electronic
Communication” shall exclude (i) any Notice of Borrowing,
Letter of Credit Request, Swing Loan Request, Notice of Conversion or
Continuation, and any other notice, demand, communication, information,
document and other material relating to a request for a new, or a conversion of
an existing, Borrowing, (ii) any notice pursuant to Section 2.8
(Optional Prepayments) and Section 2.9 (Mandatory Prepayments)
and any other notice relating to the payment of any principal or other amount
due under any Loan Document prior to the scheduled date therefor,
(iii) all notices of any Default or Event of Default and (iv) any
notice, demand, communication, information, document and other material
required to be delivered to satisfy any of the conditions set forth in Article III (Conditions to Loans and Letters of Credit) or
Section 2.4(a) (Letters of
Credit) or any other condition to any Borrowing or other extension
of credit hereunder or any condition precedent to the effectiveness of this
Agreement.

“Approved Electronic
Platform” has the meaning specified in Section 10.3(a)
(Posting of Approved Electronic Communications).

“Approved Fund”
means any Fund engaged in investing in commercial loans that is advised or
managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an
entity or Affiliate of an entity that administers or manages a Lender.

“Arranger” means
each of Citigroup Global Markets Inc. and Banc of America Securities LLC, in
their capacity as joint lead arrangers and joint book runners.

“Asset Sale” has
the meaning specified in Section 8.4 (Sale of
Assets).

“Assignment and Acceptance”
means an assignment and acceptance entered into by a Revolving Credit Lender
and an Eligible Assignee, and accepted by the Administrative Agent and, to the
extent required by Section 11.2 (Assignments
and Participations), the Borrower, in substantially the form of Exhibit A (Form of Assignment and Acceptance).

 3
 

“Availability Reserve”
means, as of two Business Days after the date of written notice of any
determination thereof to the Borrower by the Administrative Agent, such amounts
as the Administrative Agent deems necessary from time to time, in the
Administrative Agent’s commercially reasonable discretion, to establish against
the Facility in order to preserve the ability to collect Eligible Accounts
comprising a material portion of the Collateral and the ability of the
Secured Parties to realize the value of such Collateral.

“Available Credit”
means, at any time, (a) the lesser of (i) the then effective
Revolving Credit Commitments and (ii) the Borrowing Base at such time, minus (b) the sum of (i) the aggregate Revolving
Credit Outstandings at such time (ii) any Availability Reserve in effect
at such time and (iii) if the Excess Availability Condition has not been
satisfied at such time, any Eligible Obligations Reserve in effect at such time.

“Base Rate”
means, for any period, a fluctuating interest rate per annum as shall be in
effect from time to time, which rate per annum shall be equal at all times to
the highest of the following:

(a)           the
rate of interest announced publicly by Citibank in New York, New York, from
time to time, as Citibank’s base rate; and

(b)           0.5%
per annum plus the Federal Funds Rate.

“Base Rate Loan”
means any Swing Loan or any other Loan during any period in which it bears
interest based on the Base Rate.

“Benefit Plan”
means any employee benefit plan as defined in Section 3(3) of ERISA (whether
governed by the laws of the United States or otherwise) to which any Group
Member incurs or otherwise has any obligation or liability, contingent or
otherwise.

“Blockage Notice”
has the meaning specified in each Deposit Account Control Agreement.

“Borrower” has
the meaning specified in the preamble to this Agreement.

“Borrowing”
means a borrowing consisting of Revolving Loans made on the same day by the
Revolving Credit Lenders ratably according to their respective Revolving Credit
Commitments.

“Borrowing Base”
means, at any time, the sum of the products of (a)(x) the Dollar value of each
class of Eligible Accounts of the Borrower and the Guarantors minus (y) any Eligibility Reserve then in effect, multiplied by (b) the Advance Rate then in effect for such
class of Eligible Accounts.

“Borrowing Base Certificate”
means a certificate of the Borrower substantially in the form of Exhibit J (Form of Borrowing Base Certificate).

“Business Day”
means a day of the year on which banks are not required or authorized to close
in New York City and, if the applicable Business Day relates to notices,
determinations, fundings and payments in connection with the Eurodollar Rate or
any Eurodollar 

 4
 

Rate Loans, a day on which dealings in Dollar deposits
are also carried on in the London interbank market.

“Business Plan”
has the meaning set forth in Section 3.1(e)
(Conditions Precedent to Initial Loans and Letters of Credit).

“Capital Expenditures”
means, for any Person for any period, the aggregate of amounts that would be
reflected as additions to property, plant or equipment on a Consolidated cash
flow statement of such Person and its Subsidiaries, excluding interest
capitalized during construction and excluding expenditures constituting all or
a portion of the purchase price for Acquisitions.

“Capital Lease”
means, with respect to any Person, any lease of, or other arrangement conveying
the right to use, property by such Person as lessee that would be accounted for
as a capital lease on a balance sheet of such Person prepared in conformity
with GAAP.

“Capital Lease Obligations”
means, with respect to any Person, the capitalized amount of all Consolidated
obligations of such Person or any of its Subsidiaries under Capital Leases.

“Cash Collateral Account”
means any Deposit Account that is (a) established by the Administrative
Agent from time to time in its sole discretion to receive cash and Cash
Equivalents (or purchase cash or Cash Equivalents with funds received) from the
Loan Parties or Persons acting on their behalf pursuant to the Loan Documents,
(b) with such depositaries and as the Administrative Agent may determine
in its sole discretion, (c) in the name of the Administrative Agent (although
such account may also have words referring to the Borrower and the account’s
purpose), (d) under the control of the Administrative Agent and
(e) in the case of a Securities Account, with respect to which the
Administrative Agent shall be the Entitlement Holder and the only Person
authorized to give Entitlement Orders with respect thereto.

“Cash Equivalents”
means (a) securities issued or fully guaranteed or insured by the United
States federal government or any agency thereof, (b) demand
deposits, certificates of deposit, eurodollar time deposits, overnight
bank deposits and bankers’ acceptances of any Lender or any commercial bank
organized under the laws of the United States, any state thereof, the District
of Columbia, any foreign bank, or its branches or agencies (fully protected
against currency fluctuations) that, at the time of acquisition, are rated at
least “A-1” by S&P or “P-1” by Moody’s, (c) commercial paper of an issuer
rated at least “A-1” by S&P or “P-1” by Moody’s and (d) shares of any money market
fund that (i) has net assets whose Dollar Equivalent exceeds $500,000,000,
(ii) is continuously in compliance with Rule 2A-7 and (iii) if such
fund is not in compliance with Rule 2A-7, is rated at least “AAA” by S&P or Moody’s; provided, however, that the maturities of all obligations of the type
specified in clauses (a), (b) and (c) above shall
not exceed 365 days.

“Cash Interest Expense”
means, with respect to any Person for any period, the Interest Expense of such
Person for such period less the Non-Cash
Interest Expense of such Person for such period.

 5
 

“Cash Management Document”
means any certificate, agreement or other document executed by any Loan Party
in respect of the Cash Management Obligations of any Loan Party.

“Cash Management Obligation”
means, as applied to any Person, any direct or indirect liability, contingent
or otherwise, of such Person in respect of cash management services (including
treasury, depository, overdraft, credit or debit card, electronic funds
transfer and other cash management arrangements) provided after the date hereof
(regardless of whether these or similar services were provided prior to the
date hereof by the Administrative Agent, any Lender or any Affiliate of any of
them) by the Administrative Agent, any Lender or any Affiliate of any of them
in connection with this Agreement or any Loan Document (other than Cash
Management Documents), including obligations for the payment of fees, interest,
charges, expenses, attorneys’ fees and disbursements in connection therewith.

“Change of Control”
means the occurrence of any of the following: (a) any person or group of
persons (within the meaning of the Securities Exchange Act of 1934, as amended)
shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of
the Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended) of 35% or more of the issued and outstanding Voting Stock of
the Borrower or (b) during any period of twelve consecutive calendar
months, individuals who, at the beginning of such period, constituted the board
of directors of the Borrower (together with any new directors whose election by
the board of directors of the Borrower or whose nomination for election by the
stockholders of the Borrower was approved by a vote of at least a majority of
the directors then still in office who either were directors at the beginning
of such period or whose elections or nomination for election was previously so
approved) cease for any reason other than death or disability to constitute a
majority of the directors then in office or (c) the Borrower shall cease
to own and control at least 60% of the economic and voting rights associated
with the outstanding Stock of each Guarantor, unless the Stock of such
Guarantor has been sold in a transaction permitted by Sections
8.4(g) or (h) (Sale of Assets).

“Citibank” means
Citibank, N.A., a national banking association.

“Citicorp” has
the meaning specified in the preamble to this Agreement.

“Closing Date”
means the first date on which any Loan is made or any Letter of Credit is
Issued or deemed issued pursuant to Section 2.4(k)
(Letters of Credit).

“Code” means the
U.S. Internal Revenue Code of 1986, as currently amended.

“Collateral”
means all property and interests in property and proceeds thereof now owned or
hereafter acquired by any Loan Party in or upon which a Lien is granted under
any Collateral Document.

“Collateral Documents”
means the Security Agreement, the Deposit Account Control Agreements and any
other document executed and delivered by a Loan Party granting a Lien on any of
its property to secure payment of the Secured Obligations.

“Collection Deposit Account”
means (i) any Program Deposit Account and (ii) any other Deposit Account that
is not an Approved Deposit Account to which Accounts or the Proceeds thereof
are paid or credited and, in each case of (i) and (ii) above
that is maintained by 

 6
 

any Loan Party with a Deposit Account Bank.  “Collection Deposit Account”
includes all monies on deposit in a Deposit Account and all certificates and
instruments, if any, representing or evidencing such Deposit Account.

“Collection Deposit Account
Agreement” means an agreement, substantially in the form of Exhibit K (Form of Collection Deposit
Account Agreement) or otherwise in form and substance reasonably
satisfactory to the Administrative Agent, executed by the relevant Loan Party,
the Administrative Agent and the relevant financial institution.

“Compliance Certificate”
has the meaning specified in Section 6.1(c)
(Financial Statements).

“Concentration Account”
means any Deposit Account that is (a) established by the Administrative
Agent from time to time in its sole discretion to receive cash from the
Approved Deposit Accounts during a Liquidity Event Period pursuant to the Loan
Documents, (b) with such depositaries as the Administrative Agent may
determine in its sole discretion, (c) in the name of the Administrative
Agent (although such account may also have words referring to the Borrower and
the account’s purpose) and (d) under the control of the Administrative
Agent.

“Consolidated”
means, with respect to any Person, the consolidation of accounts of such Person
and its Subsidiaries in accordance with GAAP.

“Consolidated Net Income”
means, for any Person for any period, the Consolidated net income (or loss) of
such Person and its Subsidiaries for such period determined in accordance with
GAAP.

“Constituent Documents”
means, with respect to any Person, (a) the articles of incorporation,
certificate of incorporation, constitution or certificate of formation (or the
equivalent organizational documents) of such Person, (b) the by-laws
or operating agreement (or the equivalent governing documents) of such Person
and (c) any document setting forth the manner of election or duties of the
directors or managing members of such Person (if any) and the designation,
amount or relative rights, limitations and preferences of any class or series
of such Person’s Stock.

“Contaminant”
means any material, substance or waste that is classified, regulated or otherwise
characterized under any Environmental Law as hazardous, toxic, a contaminant or
a pollutant or by other words of similar meaning or regulatory effect,
including any petroleum or petroleum-derived substance or waste, asbestos
and polychlorinated biphenyls.

“Contractual Obligation”
of any Person means any obligation, agreement, undertaking or similar provision
of any Security issued by such Person or of any agreement, undertaking,
contract, lease, indenture, mortgage, deed of trust or other instrument (excluding
a Loan Document) to which such Person is a party or by which it or any of its
property is bound or to which any of its property is subject.

“Corporate Chart”
means a corporate organizational chart, list or other similar document in each
case in form reasonably acceptable to the Administrative Agent and setting
forth, for each Person that is a Loan Party, that is subject to Section 7.10 (Additional Collateral and Guaranties) or that
is a Subsidiary of any of them, (a) the full legal name of such Loan
Party, (b) the jurisdiction of organization, the organizational number (if
any) and the tax identification 

 7
 

number (if any) of such Loan Party, (c) the
location of such Loan Party’s chief executive office (or sole place of
business) and (d) the percentage of shares outstanding of each class of such
Person’s Stock owned (directly or indirectly) by any Loan Party or any
Subsidiary of any of them.

“Customary Permitted Liens”
means, with respect to any Person, any of the following Liens:

(a)           Liens
with respect to the payment of taxes, assessments or governmental charges in
each case that are not delinquent or that are being contested in good faith by
appropriate proceedings and with respect to which adequate reserves or other
appropriate provisions are being maintained to the extent required by GAAP;

(b)           Liens
of landlords arising by statute and liens of suppliers, mechanics, carriers,
materialmen, warehousemen or workmen and other similar Liens, in each case
(i) imposed by law or arising in the ordinary course of business,
(ii) for amounts not delinquent or that are being contested in good faith
by appropriate proceedings and (iii) with respect to which adequate
reserves or other appropriate provisions are being maintained to the extent
required by GAAP;

(c)           deposits
made in the ordinary course of business in connection with workers’
compensation, unemployment insurance or other types of social security benefits
or to secure the performance of bids, tenders, sales, contracts (other than for
the repayment of borrowed money) and surety, appeal, customs or performance
bonds;

(d)           encumbrances
arising by reason of zoning restrictions, easements, licenses, reservations,
covenants, rights-of-way, utility easements, building restrictions and other
similar encumbrances on the use of real property not materially detracting from
the value of such real property or not materially interfering with the ordinary
conduct of the business conducted and proposed to be conducted at such real
property;

(e)           encumbrances
arising under leases or subleases of real property that do not, in the
aggregate, materially detract from the value of such real property or interfere
with the ordinary conduct of the business conducted and proposed to be
conducted at such real property; and

(f)            financing
statements with respect to a lessor’s rights in and to personal property leased
to such Person in the ordinary course of such Person’s business other than
through a Capital Lease.

“Default” means
any event that, with the passing of time or the giving of notice or both, would
become an Event of Default.

“Deposit Account”
has the meaning given to such term in the UCC.

“Deposit Account Bank”
means a financial institution reasonably acceptable to the Administrative Agent
that maintains a Deposit Account for a Loan Party.

“Deposit Account Control
Agreement” has the meaning specified in the Security Agreement.

 8
 

“Discharge Date”
means, (i) with respect to services rendered or goods sold to any inpatient,
the date such inpatient is discharged and (ii) with respect to services
rendered or goods sold to any outpatient, the date on which such services are
rendered or goods are sold.

“Documentary Letter of
Credit” means any Letter of Credit that is drawable upon
presentation of documents evidencing the sale or shipment of goods purchased by
any Group Member in the ordinary course of its business.

“Dollar Equivalent”
of any amount means, at the time of determination thereof, (a) if such
amount is expressed in Dollars, such amount and (b) if such amount is
denominated in any other currency, the equivalent of such amount in Dollars as
determined by the Administrative Agent using any method of determination it
deems appropriate.

“Dollars” and
the sign “$” each mean the lawful money of the
United States of America.

“Domestic Lending Office”
means, with respect to any Revolving Credit Lender, the office of such
Revolving Credit Lender specified as its “Domestic Lending Office” opposite its
name on Schedule II (Applicable Lending Offices and
Addresses for Notices) or on the Assignment and Acceptance by which
it became a Revolving Credit Lender or such other office of such Revolving
Credit Lender as such Revolving Credit Lender may from time to time specify to
the Borrower and the Administrative Agent.

“Domestic Person”
means any “United States person” under and as defined in Section 7701(a)(30) of
the Code.

“Domestic Subsidiary”
means any Subsidiary of the Borrower organized under the laws of any state of
the United States of America or the District of Columbia.

“EBITDA” means,
with respect to any Person for any period, (a) Consolidated Net Income of
such Person for such period plus
(b) the sum of, in each case to the extent included in the calculation of
such Consolidated Net Income, but without duplication, (i) losses from discontinued
operations of such Person, which discontinued operations, in the case of the
Borrower or any of its Subsidiaries, (1) have been disclosed on the Borrower’s
financial statements for the period ended September 30, 2006 and (2) so long as
the Borrower’s RHD and Trinity operations are reported as discontinued
operations no later than as at the end of the Fiscal Quarter of the Borrower
ending September 30, 2007, the discontinued operations of the RHD and Trinity
operations, (ii) any provision for income taxes, (iii) any loss from the sale
of such Person’s facilities and long term investments, (iv) any expenses
attributable to minority interests, (v) Interest Expense, (vi) litigation
expenses and expenses in connection with the catastrophic events in each case
as disclosed in the Borrower’s Consolidated financial statements as at June 30,
2006, (vii) losses from extraordinary items or from the early extinguishment of
Debt, (viii) impairments of long-lived assets and goodwill and restructuring
charges, (ix) depreciation and amortization expenses and (x) stock based
compensation expense minus (c) the
sum of, in each case to the extent included in the calculation of such
Consolidated Net Income but without duplication, (i) the cumulative effect
(positive or negative, as the case may be) of changes in accounting principle,
(ii) income from discontinued operations of such Person, which discontinued
operations, in the case of the Borrower or any of its Subsidiaries, (1) have
been disclosed on the Borrower’s financial statements for the period ended
September 30, 2006 and (2) so long as the Borrower’s RHD and Trinity operations
are reported as discontinued operations no 

 9
 

later than as at the end of the Fiscal Quarter of the
Borrower ending September 30, 2007, the discontinued operations of the RHD and
Trinity operations, (iii) any net credit for taxes (iv) any income from the
sale of such Person’s facilities and long term investments, (v) any income
attributable to minority interests, (vi) income from extraordinary items or
from the early extinguishment of Debt and (vii) in the case of the Borrower or
any of its Subsidiaries, the amount by which cash restructuring expenses
incurred after September 30, 2006 exceed, in the aggregate, $50,000,000.

“Eligibility Reserves”
means, (a) amounts reasonably determined by the Administrative Agent in its
sole discretion after consultation with the Borrower constituting (i) the
estimated self-pay portion of private insurance Accounts, (ii) contractual
allowances in respect of billed and unbilled Accounts and (iii) Medicare
and Medicaid cost report liability and Program Accounts and (b) effective as of
two Business Days after the date of written notice of any determination thereof
to the Borrower by the Administrative Agent, such amounts as the Administrative
Agent, in its commercially reasonable discretion and in accordance with
customary business practices for comparable transactions, deems appropriate in
order to reflect risks or contingencies that may effect the ability to collect Eligible
Accounts or the ability of the Secured Parties to realize the value thereof and
that have not already been taken into account in the calculation of the
Borrowing Base.

“Eligible Accounts”
means the gross outstanding balance of each Account (including any Program
Account, but excluding any self-pay Account), of the Borrower and the
Guarantors arising out of the services rendered or goods sold in the ordinary
course of business, that is provided by the Borrower or any Guarantor at their
respective Acute-Care hospitals or specialty hospitals to a Person that is not
an affiliate of the Borrower or any Guarantors and that constitutes Collateral
in which the Administrative Agent has a fully perfected first priority lien; provided, however, that
an Account shall not be an “Eligible Accounts”
if any of the following shall be true:

(a)           such
Account was not billed within 15 days (or in timely manner in accordance with
the normal billing policies and timing procedures of the Borrower and the
Guarantors, but in any event within 45 days) following the Discharge Date; or

(b)           such
Account is more than 180 days past the Discharge Date; or

(c)           any
warranty contained in the Loan Documents with respect to such specific Account
is not true and correct with respect to such Account; or

(d)           the
Account Debtor on such Account has (i) filed a petition for bankruptcy or
any other relief under any law relating to bankruptcy, insolvency,
reorganization or relief of debtors, (ii) made an assignment for the
benefit of creditors, (iii) had filed against it any petition or other
application for relief under any such law, (iv) has failed, suspended
business operations, become insolvent, called a meeting of its creditors for
the purpose of obtaining any financial concession or accommodation or
(v) had or suffered a receiver or a trustee to be appointed for all or a
significant portion of its assets or affairs; or

(e)           the
services rendered or the goods sold represented by such Account were rendered
or sold to an Account Debtor located outside the United States; or

 10

(f)            such
Account is subject to a lien in favor of any Person other than (i) the
Administrative Agent for the benefit of the Secured Parties or (ii) any other
Person to the extent such Lien is permitted under the Loan Documents and is
subordinated (on terms acceptable to the Administrative Agent) to the
Administrative Agent’s Lien thereon; or

(g)           such
Account is not genuine, is evidenced by a judgment or is subject to any,
defense, deduction or counterclaim provided, that such Account shall be
ineligible pursuant to this clause (g) only
to the extent of such defense, deduction or counterclaim; or

(h)           if
such Account arises from the rendering of services, such services have not
actually been performed or were undertaken in material violation of any
applicable law; or

(i)            such
Account was generated by the Borrower or any Guarantor from a facility with
respect to which any applicable Governmental Authority: (i) has revoked or
suspended the applicable Medicaid, Medicare or similar governmental program
qualification pertaining to such facility, or (ii) has revoked or suspended any
material healthcare permit pertaining to such facility, and, in each case, to
the extent that such Account arose after the date of such Governmental
Authority action and such Governmental Authority action has not been reversed
or rescinded; or

(j)            the
Account debtor on such Account is located in any State of the United States
requiring the holder of such Account, as a precondition to commencing or
maintaining any action in the courts of such State, either to (i) receive
a certificate of authorization to do business in such State or be in good
standing in such State or (ii) file a Notice of Business Activities Report
with the appropriate office or agency of such State, in each case unless (x)
the holder of such Account has received such a certificate of authority to do
business, is in good standing or, as the case may be, has duly filed such a
notice in such State or (y) the failure to take one of the actions described in
clause (i) or (ii) may be cured retrospectively by the holder of such Account;
or

(k)           the
sale represented by such Account is denominated in a currency other than
Dollars; or

(l)            such
Account is not evidenced by an invoice or other writing in form acceptable to
the Administrative Agent, in its sole discretion; or

(m)          the
Borrower or the applicable Guarantor, in order to be entitled to collect such
Account, is required to perform any additional service for, or perform or incur
any additional obligation to, the Person to whom or to which it was made; or

(n)           the
total Accounts (except in the case of Program Accounts) of such Account Debtor
to the Borrower and the Guarantors represent more than 25% of the Eligible
Accounts of the Borrower and the Guarantors at such time, but only to the
extent of such excess.

“Eligible Assignee”
means (a) a Lender or an Affiliate or Approved Fund of any Lender,
(b) a commercial bank having total assets in excess of $5,000,000,000,
(c) a finance company, insurance company or any other financial institution
or Fund, in each case reasonably 

 11
 

acceptable to the Administrative Agent and regularly
engaged in making, purchasing or investing in loans and having a net worth,
determined in accordance with GAAP, in excess of $250,000,000 (or, to the
extent net worth is less than such amount, a finance company, insurance
company, other financial institution or Fund, reasonably acceptable to the
Administrative Agent and the Borrower) or (d) a savings and loan
association or savings bank organized under the laws of the United States or
any State thereof having a net worth, determined in accordance with GAAP, in
excess of $250,000,000.

“Eligible Obligations”
means, (a) the aggregate net obligations of the Loan Parties in respect of the
termination values of all Hedging Contracts between a Loan Party and any Person
that was a Lender or an Affiliate of a Lender at the time it entered into any
such Hedging Contract and (b) the Cash Management Obligation.

“Eligible Obligations
Reserve” means, as of two Business Days after the date of written
notice of any determination thereof to the Borrower by the Administrative
Agent, such amounts as the Administrative Agent may establish against the
Facility, in the Administrative Agent’s commercially reasonable discretion, in
respect of the Eligible Obligations.

“Entitlement Holder”
has the meaning given to such term in the UCC.

“Entitlement Order”
has the meaning given to such term in the UCC.

“Environmental Laws”
means all applicable Requirements of Law now or hereafter in effect and as
amended or supplemented from time to time, relating to pollution or the
regulation and protection of human or animal health, safety, the environment or
natural resources, including the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended (42 U.S.C. § 9601 et seq.); the Hazardous Material Transportation Act, as
amended (49 U.S.C. § 5101 et seq.); the
Federal Insecticide, Fungicide, and Rodenticide Act, as amended (7 U.S.C.
§ 136 et seq.); the Resource Conservation and Recovery
Act, as amended (42 U.S.C. § 6901 et seq.); the
Toxic Substance Control Act, as amended (15 U.S.C. § 2601 et seq.); the Clean Air Act, as amended (42 U.S.C.
§ 7401 et seq.); the Federal Water Pollution
Control Act, as amended (33 U.S.C. § 1251 et seq.);
the Occupational Safety and Health Act, as amended
(29 U.S.C. § 651 et seq.); the
Safe Drinking Water Act, as amended (42 U.S.C. § 300f et seq.);
and each of their state and local counterparts or equivalents and any transfer
of ownership notification or approval statute, including the Industrial Site
Recovery Act (N.J. Stat. Ann. § 13:1K-6 et seq.).

“Environmental Liabilities
and Costs” means, with respect to any Group Member, all liabilities,
obligations, responsibilities, Remedial Actions, losses, damages, punitive
damages, consequential damages, treble damages, costs and expenses (including
all fees, disbursements and expenses of counsel, experts and consultants and
costs of investigation and feasibility studies), fines, penalties, sanctions
and interest incurred as a result of any claim or demand by any other Person,
whether based in contract, tort, implied or express warranty, strict liability,
criminal or civil statute and whether arising under any Environmental Law,
Permit, order or agreement with any Governmental Authority or other Person, in
each case relating to any environmental, health or safety condition or to any
Release or threatened Release and resulting from the past, present or future
operations of, or ownership of property by, such Group Member.

“Environmental Lien”
means any Lien in favor of any Governmental Authority for Environmental
Liabilities and Costs.

 12
 

“Equipment” has
the meaning given to such term in the UCC.

“ERISA” means
the United States Employee Retirement Income Security Act of 1974.

“ERISA Affiliate”
means, collectively, any Group Member, and any Person under common control or
treated as a single employer. with any Group Member, within the meaning of
Section 414(b), (c), (m) or (o) of the Code.

“ERISA Event”
means (a) a reportable event described in Section 4043(b) (or, unless
the 30-day notice requirement has been duly waived under the applicable
regulations, Section 4043(c) of ERISA) with respect to a Title IV Plan,
(b) the withdrawal of any ERISA Affiliate from a Title IV Plan
subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer, as defined in Section 4001(a)(2) of ERISA,
(c) the complete or  partial
withdrawal of any ERISA Affiliate from any Multiemployer Plan, (d) with
respect to any Multiemployer Plan, the filing of notice of reorganization,
insolvency or termination (or treatment of a plan amendment as termination)
under Section 4041A of ERISA, (e) the filing of a notice of intent to
terminate a Title IV Plan (or the treatment of a plan amendment as
termination) under Section 4041 of ERISA, (f) the institution of
proceedings to terminate a Title IV Plan or Multiemployer Plan by the
PBGC, (g) the failure to make any required contribution to a Title IV
Plan or Multiemployer Plan, (h) the imposition of a lien under
Section 412 of the Code or Section 302 or 4068 of ERISA on any
property (or rights to property, whether real or personal) of any ERISA
Affiliate, (i) the failure of a Benefit Plan or any trust thereunder to
qualify for tax exempt status under Section 401 or 501 of the Code or other
Requirement of Law to qualify thereunder or (j) any other event or
condition that might reasonably be expected to constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Title IV Plan or Multiemployer Plan or the
imposition of any liability upon any ERISA Affiliate under Title IV of
ERISA other than for PBGC premiums due but not delinquent.

“Eurocurrency Liabilities”
has the meaning assigned to that term in Regulation D of the Federal Reserve
Board.

“Eurodollar Lending Office”
means, with respect to any Revolving Credit Lender, the office of such
Revolving Credit Lender specified as its “Eurodollar Lending Office” opposite
its name on Schedule II (Applicable Lending Offices and
Addresses for Notices) or on the Assignment and Acceptance by which
it became a Revolving Credit Lender (or, if no such office is specified, its
Domestic Lending Office) or such other office of such Revolving Credit Lender
as such Revolving Credit Lender may from time to time specify to the Borrower
and the Administrative Agent.

“Eurodollar Rate”
means, with respect to any Interest Period for any Eurodollar Rate Loan, the
rate determined by the Administrative Agent to be the offered rate for deposits
in Dollars for the applicable Interest Period appearing on the Dow Jones
Markets Telerate Page 3750 as of 11:00 a.m., London time, on the second
full Business Day next preceding the first day of each Interest Period.  In the event that such rate does not appear
on the Dow Jones Markets Telerate Page 3750 (or otherwise on the Dow Jones
Markets screen), the Eurodollar Rate for the purposes of this definition shall
be determined by reference to such other comparable publicly available service
for displaying eurodollar rates as may be selected by the Administrative Agent.

 13
 

“Eurodollar Rate Loan”
means any Loan that, for an Interest Period, bears interest based on the
Eurodollar Rate.

“Event of Default”
has the meaning specified in Section 9.1 (Events
of Default).

“Excess
Availability Condition” means the satisfaction of each of the
following: (a) the Available Credit is greater than 35% of the Maximum Credit
at such time, (b) the average Available Credit over the preceding twelve
calendar months (or, if less, the number of full calendar months since the
Closing Date), is greater than 35% of the average Maximum Credit over the
preceding twelve calendar months (or, if less, the number of full calendar
months since the Closing Date), and (c) no Event of Default has occurred and is
continuing, or would result from such payment or transaction, as applicable.

“Excluded Subsidiary”
means, (a) each Subsidiary of the Borrower designated by the Borrower as such; provided, however, that (i)
the aggregate total assets of all Excluded Subsidiaries on the last day of the
most recent fiscal period for which financial statement have been delivered
pursuant to Section 6.1 (Financial
Statements) shall be less than 20% of the Consolidated total assets
of the Borrower and its Subsidiaries as of such date and (ii) the aggregate
gross revenues of all such Subsidiaries for any Fiscal Quarter shall be less
than 10% of the Consolidated gross revenues of the Borrower and its
Subsidiaries for such Fiscal Quarter, in each case determined in accordance
with GAAP, (b) any Subsidiary of the Borrower of which less than 60% of
the outstanding Voting Stock is, at the time, directly or indirectly, owned or
controlled by the Borrower or one or more Guarantors and (c) each of the
Subsidiaries of the Borrower listed on Schedule 1.1(a)
(“Excluded Subsidiaries”).

 “Existing Letters of Credit” shall mean the Letters of Credit
issued pursuant to the Existing Letters of Credit Facility.

“Existing Letters of Credit
Facility” means Credit Agreement dated as of December 31, 2004 among
the Borrower, the lenders from time to time party thereto, Citicorp USA, Inc.,
as syndication agent, and Bank of America, N.A., as administrative agent and LC
Issuing Bank.

“Facility” means
the Revolving Credit Commitments and the provisions herein related to the
Revolving Loans, Swing Loans and Letters of Credit.

“Fair Market Value”
means (a) with respect to any asset or group of assets (other than a
marketable Security) at any date, the value of the consideration obtainable in
a sale of such asset at such date assuming a sale by a willing seller to a
willing purchaser dealing at arm’s length and arranged in an orderly manner
over a reasonable period of time having regard to the nature and characteristics
of such asset, as reasonably determined by the senior management of the
Borrower or, if such asset shall have been the subject of a relatively
contemporaneous appraisal by an independent third party appraiser, the basic
assumptions underlying which have not materially changed since its date, the
value set forth in such appraisal and (b) with respect to any marketable
Security at any date, the closing sale price of such Security on the Business
Day next preceding such date, as appearing in any published list of any
national securities exchange or the NASDAQ Stock Market or, if there is no such
closing sale price of such Security, the final price for the purchase of such
Security at face value quoted on such Business Day by a financial institution
of recognized standing regularly dealing in Securities of such type and
selected by the Administrative Agent.

 14
 

“Federal Funds Rate”
means, for any period, a fluctuating interest rate per annum equal for each day
during such period to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published for such day (or, if such day is not a
Business Day, for the next preceding Business Day) by the Federal Reserve Bank
of New York, or, if such rate is not so published for any day that is a
Business Day, the average of the quotations for such day on such transactions
received by the Administrative Agent from three Federal funds brokers of
recognized standing selected by it.

“Federal Reserve Board”
means the Board of Governors of the United States Federal Reserve System, or
any successor thereto.

“Fee Letter”
shall mean the letter dated September 27, 2006, addressed to the Borrower from
the Arrangers and accepted by the Borrower on September 27, 2006, with respect
to certain fees to be paid from time to time to the Arrangers.

“Financial Asset”
has the meaning given to such term in the UCC.

“Financial Covenant Debt”
of any Person means Indebtedness of the type specified in clauses (a), (b), (d), (e), (f) and (h) of the definition of “Indebtedness”
and non-contingent obligations of the type specified in clause (c) of such definition.

“Financial Statements”
means the financial statements of the Group Members delivered in accordance
with Section 4.4 (Financial Statements)
and Section 6.1 (Financial Statements).

“Fiscal Quarter”
means each of the three month periods ending on March 31, June 30,
September 30 and December 31.

“Fiscal Year”
means the twelve month period ending on December 31.

“Fixed Charge Coverage
Ratio” means, with respect to any Person for any period, the ratio
of (a) EBITDA of such Person for such period to (b) the Fixed Charges
of such Person for such period.

“Fixed Charges”
means, with respect to any Person for any period, the sum, determined on a
Consolidated basis, of (a) the Cash Interest Expense of such Person and
its Subsidiaries for such period, (b) the principal amount of Consolidated
Financial Covenant Debt of such Person and its Subsidiaries having a scheduled
due date during such period and (c) all cash dividends payable by such
Person and its Subsidiaries on Stock in respect of such period to Persons other
than such Person and its Subsidiaries.

“Fund” means any
Person (other than a natural Person) that is or will be engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business.

“GAAP” means
generally accepted accounting principles in the United States of America as in
effect from time to time set forth in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified Public
Accountants and the statements and pronouncements of the Financial Accounting
Standards Board, or in such other statements by such other 

 15
 

entity as may be in general use by significant
segments of the accounting profession, that are applicable to the circumstances
as of the date of determination.

“General Intangible”
has the meaning given to such term in the UCC.

“Governmental Authority”
means any nation, sovereign or government, any state or other political
subdivision thereof and any entity or authority exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government, including any central bank or stock exchange.

“Group Member”
means, collectively, the Borrower and its Subsidiaries.

“Group Members’ Accountants”
means KPMG, LLP or other independent nationally-recognized public accountants
reasonably acceptable to the Administrative Agent.

“Guarantor”
means each of the Borrower’s direct and indirect Domestic Subsidiaries other
than any such Subsidiary that is an Excluded Subsidiary; provided,
however, that any non-Wholly-Owned
Subsidiary of the Borrower shall not be a Guarantor hereunder unless the
Administrative Agent shall have received a certificate from a Responsible
Officer of such non-Wholly-Owned Subsidiary certifying that the execution and
delivery by such Guarantor of the Guaranty and any other Loan Document to which
such Subsidiary is party has been approved, or ratified, as the case may be, by
each holder of the economic and voting rights associated with the outstanding
Stock of such Subsidiary.

“Guaranty” means
the guaranty, in substantially the form of Exhibit H (Form of
Guaranty), executed by the Guarantors.

“Guaranty Obligation”
means, as applied to any Person, any direct or indirect liability, contingent
or otherwise, of such Person with respect to any Indebtedness of another
Person, if the purpose or intent of such Person in incurring the Guaranty
Obligation is to provide assurance to the obligee of such Indebtedness that
such Indebtedness will be paid or discharged, that any agreement relating
thereto will be complied with, or that any holder of such Indebtedness will be
protected (in whole or in part) against loss in respect thereof, including
(a) the direct or indirect guaranty, endorsement (other than for
collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of Indebtedness
of another Person and (b) any liability of such Person for Indebtedness of
another Person through any agreement (contingent or otherwise) (i) to
purchase, repurchase or otherwise acquire such Indebtedness or any security
therefor or to provide funds for the payment or discharge of such Indebtedness
(whether in the form of a loan, advance, stock purchase, capital contribution
or otherwise), (ii) to maintain the solvency or any balance sheet item,
level of income or financial condition of another Person, (iii) to make
take-or-pay or similar payments, if required, regardless of non-performance
by any other party or parties to an agreement, (iv) to purchase, sell or
lease (as lessor or lessee) property, or to purchase or sell services,
primarily for the purpose of enabling the debtor to make payment of such
Indebtedness or to assure the holder of such Indebtedness against loss or
(v) to supply funds to, or in any other manner invest in, such other Person
(including to pay for property or services irrespective of whether such
property is received or such services are rendered), if in the case of any
agreement described under clause (b)(i),
(ii), (iii),
(iv) or (v) above
the primary purpose or intent thereof is to provide assurance that Indebtedness
of another Person will be paid or discharged, that any agreement relating
thereto will be complied with or that any holder of such Indebtedness will be
protected 

 16
 

(in whole or in part) against loss in respect
thereof.  The amount of any Guaranty
Obligation shall be equal to the amount of the Indebtedness so guaranteed or
otherwise supported.

“Health Care Laws”
means all relevant federal and state laws regulating health services or
payment, including, but not limited to, the federal Anti-Kickback Statute (42
U.S.C. § 1320a-7b(b)), the Stark Law (42 U.S.C. § 1395nn), the Anti-Inducement
Law (42 U.S.C. § 1320a-7a(a)(5)), the civil False Claims Act (31 U.S.C. § 3729
et seq.), the administrative False Claims Law (42 U.S.C. § 1320a-7b(a)), the
exclusion laws (42 U.S.C. § 1320a-7), the civil monetary penalty laws (42
U.S.C. § 1320a-7a), the administrative simplification provisions of the Health
Insurance Portability and Accountability Act of 1996 (42 U.S.C. §§ 1320d-1320d-8),
Medicare (Title XVIII of the Social Security Act), Medicaid (Title XIX of the
Social Security Act), and any other state or federal law, regulation, guidance
document, manual provision, program memorandum, opinion letter, or other
issuance which regulates kickbacks, patient or program charges, recordkeeping,
referrals, the hiring of employees or acquisition of services or supplies from
those who have been excluded from government health care programs, quality,
safety, privacy, security, licensure, accreditation, or any other aspect of
providing health care.

“Health Care Reportable
Event” means (i) the Borrower or any of its Subsidiaries becomes
subject to any civil or criminal investigations, or any material inquiries,
validation reviews, program integrity reviews, reimbursement audits or
statements of deficiencies, involving and/or related to its compliance with
Health Care Laws; (ii) any material exclusion, voluntary disclosure, notice of
claim to recover material overpayments, revocation, suspension, termination,
probation, restriction, limitation, denial, or non-renewal affecting the
Borrower or any of its Subsidiaries with respect to any material Program; or
(iii) the occurrence of any reportable event under any settlement agreement or
corporate integrity agreement involving and/or related to its compliance with
Health Care Laws entered into with any Governmental Authority.

“Hedging Contracts”
means all Interest Rate Contracts, foreign exchange contracts, currency swap or
option agreements, forward contracts, commodity swap, purchase or option
agreements, other commodity price hedging arrangements and all other similar
agreements or arrangements designed to alter the risks of any Person arising
from fluctuations in interest rates, currency values or commodity prices.

“Incremental Credit
Extension Date”has the
meaning specified in Section 2.18 (Incremental
Facility).

“Indebtedness”
of any Person means without duplication (a) all indebtedness of such
Person for borrowed money, (b) all obligations of such Person evidenced by
notes, bonds, debentures or similar instruments or that bear interest,
(c) all reimbursement and all obligations with respect to letters of
credit, bankers’ acceptances, surety bonds and performance bonds, whether or
not matured, (d) all indebtedness for the deferred purchase price of
property or services in each case that are not overdue (other than trade
payables incurred in the ordinary course of business and deferred compensation
payable to employees of such Person), (e) all indebtedness of such Person
created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreement in the event
of default are limited to repossession or sale of such property), (f) all
Capital Lease Obligations of such Person and the present value of future rental
payments under all synthetic leases, (g) all Guaranty Obligations of such
Person in respect of Indebtedness of the types described in clauses (a) through (f),
(h) all obligations of 

 17
 

such Person to mandatorily purchase, redeem, retire,
defease or otherwise acquire for value at any time prior to six months after
the Scheduled Termination Date any Stock or Stock Equivalents of such Person,
valued, in the case of redeemable preferred stock, at the greater of its
voluntary liquidation preference and its involuntary liquidation preference
plus accrued and unpaid dividends, (i) all payments that such Person would
have to make in the event of an early termination on the date Indebtedness of
such Person is being determined in respect of Hedging Contracts of such Person
and (j) all Indebtedness of the type referred to above secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien upon or in property (including Accounts
and General Intangibles) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness.

“Indemnified Matter”
has the meaning specified in Section 11.4
(Indemnities).

“Indemnitee” has
the meaning specified in Section 11.4
(Indemnities).

“Indenture”
means the Indenture, dated as of November 6, 2001 (as amended and supplemented
from time to time), between the Borrower and The Bank of New York, as Trustee
with respect to the Borrower’s Senior Notes.

“Interest Expense”
means, for any Person for any period, Consolidated total interest expense of
such Person and its Subsidiaries for such period plus
interest capitalized during such period.

“Interest Period”
means, in the case of any Eurodollar Rate Loan, (a) initially, the period
commencing on the date such Eurodollar Rate Loan is made or on the date of
conversion of a Base Rate Loan to such Eurodollar Rate Loan and ending one week
or one, two, three or six months thereafter, as selected by the Borrower in its
Notice of Borrowing or Notice of Conversion or Continuation given to the
Administrative Agent pursuant to Section 2.2
(Borrowing Procedures) or 2.11
(Conversion/Continuation Option) and (b) thereafter, if such
Loan is continued, in whole or in part, as a Eurodollar Rate Loan pursuant to Section 2.11 (Conversion/Continuation Option), a period
commencing on the last day of the immediately preceding Interest Period
therefor and ending one week or one, two, three or six months thereafter, as
selected by the Borrower in its Notice of Conversion or Continuation given to
the Administrative Agent pursuant to Section 2.11
(Conversion/Continuation Option); provided, however, that all of the foregoing provisions relating to
Interest Periods in respect of Eurodollar Rate Loans are subject to the
following:

(i)            if
any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the next succeeding Business Day,
unless the result of such extension would be to extend such Interest Period
into another calendar month, in which event such Interest Period shall end on
the immediately preceding Business Day;

(ii)           any
Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of a
calendar month;

 18
 

(iii)          the
Borrower may not select any Interest Period that ends after the date of a
scheduled principal payment on the Loans as set forth in Article II
(The Facility) unless, after giving effect to such selection, the
aggregate unpaid principal amount of the Loans for which Interest Periods end
after such scheduled principal payment shall be equal to or less than the
principal amount to which the Loans are required to be reduced after such
scheduled principal payment is made;

(iv)          the
Borrower may not select any Interest Period in respect of Loans having an
aggregate principal amount of less than $1,000,000; and

(v)           there
shall be outstanding at any one time no more than twenty (20) Interest Periods
in the aggregate.

“Interest Rate Contracts”
means all interest rate swap agreements, interest rate cap agreements, interest
rate collar agreements and interest rate insurance.

“Inventory” has
the meaning given to such term in the UCC.

“Investment”
means, with respect to any Person, (a) any purchase or other acquisition
by such Person of (i) any Security issued by, (ii) a beneficial
interest in any Security issued by, or (iii) any other equity ownership
interest in, any other Person, (b) any purchase by such Person of all of
the assets constituting the business of a Person or division, branch or other
unit operation of any other Person, (c) any loan, advance (other than
deposits with financial institutions available for withdrawal on demand,
prepaid expenses, accounts receivable and similar items made or incurred in the
ordinary course of business as presently conducted) or capital contribution by
such Person to any other Person, including all Indebtedness of any other Person
to such Person arising from a sale of property by such Person other than in the
ordinary course of its business and (d) any Guaranty Obligation incurred
by such Person in respect of Indebtedness of any other Person.

“IRS” means the
Internal Revenue Service of the United States or any successor thereto.

“Issue” means,
with respect to any Letter of Credit, to issue (including any deemed issuance
pursuant to Section 2.4(k) (Letters of
Credit)), extend the expiry of, renew or increase the maximum face
amount (including by deleting or reducing any scheduled decrease in such
maximum face amount) of, such Letter of Credit. 
The terms “Issued” and “Issuance”
shall have a corresponding meaning.

“Issuer” means
each Lender or Affiliate of a Lender that (a) is listed on the signature
pages hereof as an “Issuer” or (b) hereafter becomes an Issuer with the approval
of the Administrative Agent (such approval not to be unreasonably withheld or
delayed) and the Borrower by agreeing pursuant to an agreement with and in form
and substance reasonably satisfactory to the Administrative Agent and the
Borrower to be bound by the terms hereof applicable to Issuers.

“Land” of any
Person means all of those plots, pieces or parcels of land now owned, leased or
hereafter acquired or leased or purported to be owned, leased or hereafter 

 19
 

acquired or leased (including, in respect of the Loan
Parties, as reflected in the most recent Financial Statements) by such Person.

“Leases” means,
with respect to any Person, all of those leasehold estates in real property of
such Person, as lessee, as such may be amended, supplemented or otherwise
modified from time to time.

“Lender” means
the Swing Loan Lender and each other financial institution or other entity that
(a) is listed on the signature pages hereof as a “Lender” or (b) from
time to time becomes a party hereto by execution of an Assignment and
Acceptance.

“Letter of Credit”
means any letter of credit Issued pursuant to Section 2.4
(Letters of Credit).

“Letter of Credit
Obligations” means, at any time, the Dollar Equivalent of the
aggregate of all liabilities at such time of the Borrower to all Issuers with
respect to Letters of Credit, whether or not any such liability is contingent,
including, without duplication, the sum of (a) the Reimbursement
Obligations at such time and (b) the Letter of Credit Undrawn Amounts at
such time.

“Letter of Credit
Reimbursement Agreement” has the meaning specified in Section 2.4(a)(vi) (Letters of Credit).

“Letter of Credit Request”
has the meaning specified in Section 2.4(c)
(Letters of Credit).

“Letter of Credit Sublimit”
means $300,000,000.

“Letter of Credit Undrawn
Amounts” means, at any time, the aggregate undrawn face amount of
all Letters of Credit outstanding at such time.

“Leverage Ratio”
means, with respect to any Person as of any date, the ratio of (a) (i)
Consolidated Indebtedness of such Person outstanding as of such date less (ii)
the amount by which such Person’s unencumbered Cash and Cash Equivalents is in
excess of $100,000,000 to (b) EBITDA for such Person for the last four
Fiscal Quarter period ending on or before such date.

“Lien” means any
mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit
arrangement, encumbrance, lien (statutory or other), security interest or
preference, priority or other security agreement or preferential arrangement of
any kind or nature whatsoever intended to assure payment of any Indebtedness or
the performance of any other obligation, including any conditional sale or
other title retention agreement, the interest of a lessor under a Capital Lease
and any financing lease having substantially the same economic effect as any of
the foregoing, and the filing of any financing statement authorized to be filed
by the Borrower or any of its Subsidiaries under the UCC or comparable law of
any jurisdiction naming the owner of the asset to which such Lien relates as
debtor.

“Liquidity Event Period”
means any period (a)(i) beginning on the first Business Day on which the
Available Credit is equal to or less than $100,000,000 and (ii) ending on the

 20

first Business Day on which the Available Credit is
greater than $100,000,000 for more than 30 consecutive days or (b) during which
an Event of Default shall have occurred and is continuing.

“Loan” means any
loan made by any Lender pursuant to this Agreement.

“Loan Documents”
means, collectively, this Agreement, the Revolving Credit Notes (if any), the
Guaranty, the Fee Letter, each Letter of Credit Reimbursement Agreement, each
Hedging Contract between any Loan Party and any Person that was a Lender or an Affiliate
of a Lender at the time it entered into such Hedging Contract, each Cash
Management Document, the Collateral Documents and each certificate, agreement
or document executed by a Loan Party and delivered to the Administrative Agent
or any Lender in connection with or pursuant to any of the foregoing.

“Loan Party”
means each of the Borrower, each Guarantor and each other Subsidiary of the
Borrower that executes and delivers a Loan Document.

“Material Adverse Change”
means a material adverse change in any of (a) the business, operations or
condition (financial or otherwise) of the Borrower and its Subsidiaries taken
as a whole, (b) the legality, validity or enforceability of any Loan
Document or any Related Document, (c) the perfection or priority of the
Liens granted pursuant to the Collateral Documents, (d) the ability of the
Borrower to repay the Obligations or of the other Loan Parties to perform their
respective obligations under the Loan Documents or (e) the rights and
remedies of the Administrative Agent, the Lenders or the Issuers under the Loan
Documents.

“Material Adverse Effect”
means an effect that results in or causes, or could reasonably be expected to
result in or cause, a Material Adverse Change.

“Maximum Credit”
means, at any time, (a) the lesser of (i) the Revolving Credit
Commitments in effect at such time and (ii) the Borrowing Base at such
time minus (b) the aggregate amount of
(i) any Availability Reserve and (ii) any Eligible Obligations Reserve, in each
case in effect at such time.

“Medicaid Accounts”
means Accounts for which Medicaid is the Account Debtor.

“Medicare Accounts”
means Accounts for which Medicare is the Account Debtor.

“Moody’s” means
Moody’s Investors Services, Inc.

“Multiemployer Plan”
means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to
which any Group Member or any ERISA Affiliate has any obligation or liability,
contingent or otherwise.

“Net Cash Proceeds”
means proceeds received by the Borrower or any of its Subsidiaries after the
Closing Date in cash or Cash Equivalents from any Asset Sale consisting of
Collateral, net of (i) the reasonable cash costs of sale, assignment or
other disposition, (ii) taxes paid or reasonably estimated to be payable
as a result thereof and (iii) any amount required to be paid or prepaid on
Indebtedness (other than the Obligations) secured by the assets subject to such

 21
 

Asset Sale, provided, however, thatevidence of
each of clauses (i), (ii) and
(iii) above is provided to the
Administrative Agent in form and substance satisfactory to it.

“Non-Cash Interest
Expense” means, with respect to any Person for any period, the sum
of the following amounts to the extent included in the definition of Interest
Expense; (a) the amount of debt discount and debt issuance costs amortized,
(b) charges relating to write-ups or write-downs in the book or carrying
value of existing Financial Covenant Debt, (c) interest payable in
evidences of Indebtedness or by addition to the principal of the related
Indebtedness and (d) other non-cash interest.

“Non-Consenting Lender”
has the meaning specified in Section 11.1(c)
(Amendments, Waivers, Etc.).

“Non-Funding Lender”
has the meaning specified in Section 2.2(d)
(Borrowing Procedures).

“Non-U.S. Lender”
means each Lender or Issuer (or the Administrative Agent) that is a Non-U.S.
Person.

“Non-U.S. Person”
means any Person that is not a Domestic Person.

“Notice of Borrowing”
has the meaning specified in Section 2.2(a)
(Borrowing Procedures).

“Notice of Conversion or
Continuation” has the meaning specified in Section 2.11
(Conversion/Continuation Option).

“Obligations”
means the Loans, the Letter of Credit Obligations and all other amounts,
obligations, covenants and duties owing by the Borrower to the Administrative
Agent, any Lender, any Issuer, any Affiliate of any of them or any Indemnitee,
of every type and description (whether by reason of an extension of credit,
opening or amendment of a letter of credit or payment of any draft drawn or
other payment thereunder, loan, guaranty, indemnification, foreign exchange or
currency swap transaction, interest rate hedging transaction or otherwise),
present or future, arising under this Agreement, any other Loan Document
(including Cash Management Documents and Hedging Contracts that are Loan
Documents), whether direct or indirect (including those acquired by
assignment), absolute or contingent, due or to become due, now existing or
hereafter arising and however acquired and whether or not evidenced by any
note, guaranty or other instrument or for the payment of money, including all
letter of credit, cash management and other fees, interest, charges, expenses,
attorneys’ fees and disbursements, Cash Management Obligations and other sums
chargeable to the Borrower under this Agreement, any other Loan Document
(including Cash Management Documents and Hedging Contracts that are Loan
Documents) and all obligations of the Borrower under any Loan Document to
provide cash collateral for any Letter of Credit Obligation.

“Patriot Act”
means the USA Patriot Act of 2001 (31 U.S.C. 5318 et seq.).

“PBGC” means the
Pension Benefit Guaranty Corporation or any successor thereto.

 22
 

“Permit” means
any permit, approval, authorization, license, variance, accreditation or
permission required from a Governmental Authority under an applicable
Requirement of Law or any accrediting organization.

“Permitted Refinancing”
means amendment to, or renewals, extensions, refinancings and refundings of,
Indebtedness permitted by Sections 8.1(b), (i), (j)
or (k) (Indebtedness) that (a) are in an aggregate principal amount
not greater than the principal amount of such Indebtedness then outstanding plus a reasonable premium or other reasonable amount paid,
and fees and expenses reasonably incurred, in connection with any of the
foregoing, (b) have a weighted average maturity and final maturity (measured as
of the date of such renewal, refinancing, extension or refunding) no shorter
than that of such Indebtedness and (c) with respect to any guarantee, security
or subordination provisions, shall have such provisions which are not
materially less favorable to the Lenders than such Indebtedness.

“Person” means
an individual, partnership, corporation (including a business trust), joint
stock company, estate, trust, limited liability company, unincorporated
association, joint venture or other entity or a Governmental Authority.

“Pro Forma Basis”
means, with respect to any determination for any period, that such
determination shall be made giving pro forma
effect to each acquisition consummated during such period, together with all
transactions relating thereto consummated during such period (including any
incurrence, assumption, refinancing or repayment of Indebtedness), as if such
acquisition and related transactions had been consummated on the first day of
such period, in each case based on historical results accounted for in
accordance with GAAP and, to the extent applicable, reasonable assumptions that
are specified in details in the relevant Compliance Certificate, Financial
Statement or other document provided to the Administrative Agent or any Lender
in connection herewith in accordance with Regulation S-X of the Securities Act
of 1933.

“Proceeds” has
the meaning given to such term in the UCC.

“Program” has
the meaning specified in Section 4.13(b).

“Program
Accounts” shall mean Medicare Accounts, Medicaid Accounts and any
other Account with respect to which the obligor is the United States or any
state of the United States (or any agency thereof).

“Program Deposit Account”
means a Deposit Account into which any Program Accounts or the Proceeds thereof
are paid or credited.

“Protective Advances” means
all expenses, disbursements and advances incurred by the Administrative Agent
pursuant to the Loan Documents after the occurrence and during the continuance
of an Event of Default that the Administrative Agent, in its sole discretion,
deems necessary or desirable to preserve or protect the Collateral or any
portion thereof or to enhance the likelihood, or maximize the amount, of
repayment of the Obligations.

“Purchasing Lender”
has the meaning specified in Section 11.7 (Sharing
of Payments, Etc.).

“Ratable Portion”
or (other than in the expression “equally and ratably”) “ratably”
means, with respect to any Revolving Credit Lender, the percentage obtained by 

 23
 

dividing (a) the Revolving Credit Commitment of
such Revolving Credit Lender by (b) the aggregate Revolving Credit
Commitments of all Revolving Credit Lenders (or, at any time after the
Revolving Credit Termination Date, the percentage obtained by dividing the
aggregate outstanding principal balance of the Revolving Credit Outstandings
owing to such Revolving Credit Lender by the aggregate outstanding principal
balance of the Revolving Credit Outstandings owing to all Revolving Credit
Lenders).

“Real Property”
of any Person means the Land of such Person, together with the right, title and
interest of such Person, if any, in and to the streets, the Land lying in the
bed of any streets, roads or avenues, opened or proposed, in front of, the air
space and development rights pertaining to the Land and the right to use such
air space and development rights, all rights of way, privileges, liberties,
tenements, hereditaments and appurtenances belonging or in any way appertaining
thereto, all fixtures, all easements now or hereafter benefiting the Land and
all royalties and rights appertaining to the use and enjoyment of the Land,
including all alley, vault, drainage, mineral, water, oil and gas rights,
together with all of the buildings and other improvements now or hereafter
erected on the Land and any fixtures appurtenant thereto.

“Reference Bank” means
the Lender (or any Affiliate thereof) that is then acting as the Administrative
Agentor an Affiliate of the Administrative
Agent.

“Register” has
the meaning specified in Section 2.7(b)
(Evidence of Debt).

“Reimbursement Date”
has the meaning specified in Section 2.4(h)
(Letters of Credit).

“Reimbursement Obligations”
means, as and when matured, the obligation of the Borrower to pay, on the date
payment is made or scheduled to be made to the beneficiary under each such
Letter of Credit (or at such other date as may be specified in the applicable
Letter of Credit Reimbursement Agreement) and in the currency drawn (or in such
other currency as may be specified in the applicable Letter of Credit
Reimbursement Agreement), all amounts of each drafts and other requests for
payments drawn under Letters of Credit, and all other matured reimbursement or
repayment obligations of the Borrower to any Issuer with respect to amounts
drawn under Letters of Credit.

“Related Documents”
means the Indenture and each other document and instrument executed with
respect thereof.

“Release” means,
with respect to any Person, any release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, leaching or migration, in
each case, of any Contaminant into the indoor or outdoor environment or into or
out of any property owned, leased or operated by such Person, including the
movement of Contaminants through or in the air, soil, surface water, ground
water or property.

“Remedial Action”
means all actions required to (a) clean up, remove, treat or in any other
way address any Contaminant in the indoor or outdoor environment,
(b) prevent the Release or threat of Release or minimize the further
Release so that a Contaminant does not migrate or endanger or threaten to
endanger public health or welfare or the indoor or outdoor environment or
(c) perform pre-remedial studies and investigations and post-remedial
monitoring and care.

 24
 

“Requirement of Law”
means, with respect to any Person, the common law and all federal, state, local
and foreign laws, treaties, rules and regulations, orders, judgments, decrees
and other determinations of, concessions, grants, franchises, licenses and
other Contractual Obligations with, any Governmental Authority or arbitrator,
applicable to or binding upon such Person or any of its property or to which
such Person or any of its property is subject.

“Requisite Lenders”
means, collectively, Revolving Credit Lenders having more than fifty percent
(50%) of the aggregate outstanding amount of the Revolving Credit Commitments
or, after the Revolving Credit Termination Date, more than fifty percent (50%)
of the aggregate Revolving Credit Outstandings. 
A Non-Funding Lender shall not be included in the calculation of “Requisite Lenders.”

“Responsible Officer”
means, with respect to any Person, any of the principal executive officers,
managing members or general partners of such Person but, in any event, with
respect to financial matters, the chief financial officer, treasurer or
controller of such Person.

“Restricted Payment”
means (a) any dividend, distribution or any other payment whether direct
or indirect, on account of any Stock or Stock Equivalent of the Borrower or any
of its Subsidiaries now or hereafter outstanding and (b) any redemption,
retirement, sinking fund or similar payment, purchase or other acquisition for
value, direct or indirect, of any Stock or Stock Equivalent of the Borrower or
any of its Subsidiaries now or hereafter outstanding.

“Revolving Credit
Commitment” means, with respect to each Revolving Credit Lender, the
commitment of such Revolving Credit Lender to make Revolving Loans and acquire
interests in other Revolving Credit Outstandings in the aggregate principal
amount outstanding not to exceed the amount set forth opposite such Revolving
Credit Lender’s name on Schedule I
(Revolving Credit Commitments) under the caption “Revolving Credit Commitment,” as amended to reflect each Assignment
and Acceptance executed by such Revolving Credit Lender and as such amount may
be reduced pursuant to this Agreement, and each additional commitment by a
Lender (if any) that is included under the Facility as part of a Revolving
Credit Commitment Increase.

“Revolving Credit
Commitment Increase” has the meaning specified in Section 2.18 (Incremental Facility).

“Revolving Credit Lender”
means each Lender that (a) has a Revolving Credit Commitment,
(b) holds a Revolving Loan or (c) participates in any Letter of
Credit.

“Revolving Credit Note”
means a promissory note of the Borrower payable to the order of any Revolving
Credit Lender in a principal amount equal to the amount of such Revolving
Credit Lender’s Revolving Credit Commitment evidencing the aggregate
Indebtedness of the Borrower to such Revolving Credit Lender resulting from the
Revolving Loans owing to such Revolving Credit Lender.

“Revolving Credit
Outstandings” means, at any particular time, the sum of (a) the
principal amount of the Revolving Loans outstanding at such time, (b) the
Letter of Credit Obligations outstanding at such time and (c) the
principal amount of the Swing Loans outstanding at such time.

 25
 

“Revolving Credit
Termination Date” shall mean the earliest of (a) the Scheduled
Termination Date, (b) the date of termination of all of the Revolving
Credit Commitments pursuant to Section 2.5
(Reduction and Termination of the Revolving Credit Commitments) and
(c) the date on which the Obligations become due and payable pursuant to Section 9.2 (Remedies).

“Revolving Loan”
has the meaning specified in Section 2.1 (The
Revolving Credit Commitments).

“Rule 2A-7”
means Rule 2A-F under the Investment Company Act of 1940, as amended.

“S&P” means
Standard & Poor’s Rating Services.

“Sarbanes-Oxley Act”
means the United States Sarbanes-Oxley Act of 2002.

“Scheduled Termination Date” means
November 16, 2011.

“SEC” means the
Securities and Exchange Commission.

“Secured Obligations”
means, in the case of the Borrower, the Obligations, and, in the case of any
other Loan Party, the obligations of such Loan Party under the Guaranty and the
other Loan Documents to which it is a party.

“Secured Parties”
means the Lenders, the Issuers, the Administrative Agent and any other holder
of any Secured Obligation.

“Securities Account”
has the meaning given to such term in the UCC.

“Securities Account
Control Agreement” has the meaning
specified in the Security Agreement.

“Security” means
any Stock, Stock Equivalent, voting trust certificate, bond, debenture, note or
other evidence of Indebtedness, whether secured, unsecured, convertible or
subordinated, or any certificate of interest, share or participation in, any
temporary or interim certificate for the purchase or acquisition of, or any
right to subscribe to, purchase or acquire, any of the foregoing, but shall not
include any evidence of the Obligations.

“Security Agreement”
means an agreement, in substantially the form of
Exhibit I (Form of Security Agreement), executed by the
Borrower and each Guarantor.

“Selling Lender”
has the meaning specified in Section 11.7 (Sharing
of Payments, Etc.).

“Senior Debt”
means with respect to any Person, any Indebtedness of such Person that ranks in
right of payment at least pari passu with
the other unsecured Indebtedness of such Person, and in the case of the
Borrower, includes the Senior Notes.

 26
 

“Senior Notes”
means each of the Borrower’s 6.375% Senior Notes due 2011, 6.875% Senior Notes
due 2031, 6.5% Senior Notes due 2012, 7.375% Senior Notes due 2013, 9.875%
Senior Notes due 2014 and 9.25% Senior Notes due 2015.

“Solvent” means,
with respect to any Person as of any date of determination, that, as of such
date, (a) the value of the assets of such Person (both at fair value and
present fair saleable value) is greater than the total amount of liabilities
(including contingent and unliquidated liabilities) of such Person,
(b) such Person is able to pay all liabilities of such Person as such
liabilities mature and (c) such Person does not have unreasonably small
capital.  In computing the amount of
contingent or unliquidated liabilities at any time, such liabilities shall be
computed at the amount that, in light of all the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.

“Special Purpose Vehicle”
means any special purpose funding vehicle identified as such in writing by any
Lender to the Administrative Agent.

“Standby Letter of Credit”
means any Letter of Credit that is not a Documentary Letter of Credit.

“Stock” means
shares of capital stock (whether denominated as common stock or preferred
stock), beneficial, partnership or membership interests, participations or
other equivalents (regardless of how designated) of or in a corporation, partnership,
limited liability company or equivalent entity, whether voting or non-voting.

“Stock Equivalents”
means all securities convertible into or exchangeable for Stock and all
warrants, options or other rights to purchase or subscribe for any Stock, whether
or not presently convertible, exchangeable or exercisable.

“Subordinated Debt”
means any Indebtedness that is subordinated to the payment in full of the
Obligations on terms and conditions satisfactory to the Administrative Agent.

“Subsidiary”
means, with respect to any Person, any corporation, partnership, limited
liability company or other business entity of which an aggregate of more than
50% of the outstanding Voting Stock is, at the time, directly or indirectly,
owned or controlled by such Person or one or more Subsidiaries of such Person.

“Substitute Institution”
has the meaning specified in Section 2.17
(Substitution of Lenders).

“Substitution Notice”
has the meaning specified in Section 2.17
(Substitution of Lenders).

“Super-Majority Lenders”
means, collectively, Revolving Credit Lenders having at least ninety percent
(90%) of the aggregate outstanding amount of the Revolving Credit Commitments
or, after the Revolving Credit Termination Date, at least ninety percent (90%)
of the aggregate Revolving Credit Outstandings. 
A Non-Funding Lender shall not be included in the calculation of “Super-Majority Lenders.”

“Swing Loan” has
the meaning specified in Section 2.3 (Swing
Loans).

 27
 

“Swing Loan Lender”
means Citicorp or any other Revolving Credit Lender that becomes the
Administrative Agent or agrees, with the approval of the Administrative Agent
and the Borrower, to act as the Swing Loan Lender hereunder, in each case in
its capacity as the Swing Loan Lender hereunder.

“Swing Loan Request”
has the meaning specified in Section 2.3(b) (Swing
Loans).

“Swing Loan Sublimit”
means $50,000,000.

“Syndication Completion
Date” means the earlier to occur of (a) the 45th day following the Closing Date and
(b) the date upon which each Arranger determines in its sole discretion
that the primary syndication of the Loans and Revolving Credit Commitments has
been completed.

“Tax Affiliate”
means, with respect to any Person, (a) any Subsidiary of such Person and
(b) any Affiliate of such Person with which such Person files or is
eligible to file consolidated, combined or unitary tax returns.

“Tax Return” has
the meaning specified in Section 4.8(a)
(Taxes).

“Taxes” has the
meaning specified in Section 2.16(a)
(Taxes).

“Title IV Plan”
means a pension plan, other than a Multiemployer Plan, covered by Title IV
of ERISA and to which any ERISA Affiliate has any obligation or liability,
contingent or otherwise.

“UCC” has the
meaning specified in the Security Agreement.

“Unused Commitment Fee”
has the meaning specified in Section 2.12(a)
(Fees).

“Unused Commitment Fee Rate”
means 0.375% per annum.

“U.S. Lender”
means each Lender or Issuer (or the Administrative Agent) that is a Domestic
Person.

“Voting Stock”
means Stock of any Person having ordinary power to vote in the election of members
of the board of directors, managers, trustees or other controlling Persons, of
such Person (irrespective of whether, at the time, Stock of any other class or
classes of such entity shall have or might have voting power by reason of the
happening of any contingency).

“Wholly-Owned Subsidiary”
of any Person means any Subsidiary of such Person, all of the Stock of which
(other than director’s qualifying shares, as may be required by law) is owned
by such Person, either directly or indirectly through one or more Wholly-Owned
Subsidiaries of such Person.

“Withdrawal Liability”
means, at any time, any liability incurred (whether or not assessed) by any
ERISA Affiliate and not yet satisfied or paid in full at such time with respect
to any Multiemployer Plan pursuant to Section 4201 of ERISA.

 28
 

Section 1.2            Computation of Time Periods

In this Agreement, in the computation of periods of
time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each
mean “to but excluding” and the word “through” means “to
and including.”

Section 1.3            Accounting Terms and Principles

(a)           Except as set forth
below, all accounting terms not specifically defined herein shall be construed
in conformity with GAAP and all accounting determinations required to be made
pursuant hereto (including for purpose of measuring compliance with Article V (Financial Covenants) shall, unless expressly
otherwise provided herein, be made in conformity with GAAP.

(b)           If any change in the
accounting principles used in the preparation of the most recent Financial
Statements referred to in Section 6.1
(Financial Statements) is hereafter required or permitted by the
rules, regulations, pronouncements and opinions of the Financial Accounting Standards
Board or the American Institute of Certified Public Accountants (or any
successors thereto) and such change is adopted by the Borrower with the
agreement of the Group Member’s Accountants and results in a change in any of
the calculations required by Article V (Financial
Covenants) or VIII (Negative Covenants)
that would not have resulted had such accounting change not
occurred, the parties hereto agree to enter into negotiations in order to amend
such provisions so as to equitably reflect such change such that the criteria
for evaluating compliance with such covenants by the Borrower shall be the same
after such change as if such change had not been made; provided,
however, that no change in GAAP that
would affect a calculation that measures compliance with any covenant contained
in Article V (Financial Covenants) or VIII (Negative Covenants) shall be given effect until such
provisions are amended to reflect such changes in GAAP.

(c)           For purposes of
making all financial calculations to determine compliance with Article V (Financial Covenants),all
components of such calculations shall be adjusted to include or exclude, as the
case may be, without duplication, such components of such calculations
attributable to any business or assets that have been acquired by the Group
Members (including through Acquisitions) after the first day of the applicable
period of determination and prior to the end of such period, as determined in
good faith by the Borrower on a Pro Forma Basis.

Section 1.4            Conversion of Foreign Currencies

(a)           Financial
Covenant Debt.  Financial
Covenant Debt denominated in any currency other than Dollars shall be
calculated using the Dollar Equivalent thereof as of the date of the Financial
Statements on which such Financial Covenant Debt is reflected.

(b)           Dollar
Equivalents.  The
Administrative Agent shall determine the Dollar Equivalent of any amount as
required hereby, and a determination thereof by the Administrative Agent shall
be conclusive absent manifest error.  The
Administrative Agent may, but shall not be obligated to, rely on any
determination made by any Loan Party in any document delivered to the
Administrative Agent.  The Administrative
Agent may determine or redetermine the Dollar Equivalent of any amount on any
date either in its own discretion or upon the request of any Lender or Issuer.

 29
 

(c)           Rounding-Off.  The Administrative Agent may set up
appropriate rounding off mechanisms or otherwise round-off amounts hereunder to
the nearest higher or lower amount in whole Dollar or cent to ensure amounts
owing by any party hereunder or that otherwise need to be calculated or
converted hereunder are expressed in whole Dollars or in whole cents, as may be
necessary or appropriate.

Section 1.5            Certain Terms

(a)           The terms “herein,” “hereof,” “hereto” and “hereunder” and
similar terms refer to this Agreement as a whole and not to any particular
Article, Section, subsection or clause in, this Agreement.

(b)           Unless otherwise
expressly indicated herein, (i) references in this Agreement to an Exhibit,
Schedule, Article, Section, clause or sub-clause refer to the appropriate
Exhibit or Schedule to, or Article, Section, clause or sub-clause in this
Agreement and (ii) the words “above” and “below”, when following a reference to a clause or a sub-clause
of any Loan Document, refer to a clause or sub-clause within, respectively, the
same Section or clause.

(c)           Each agreement
defined in this Article I shall include all
appendices, exhibits and schedules thereto. 
Unless the prior written consent of the Requisite Lenders is required
hereunder for an amendment, restatement, supplement or other modification to
any such agreement and such consent is not obtained, references in this
Agreement to such agreement shall be to such agreement as so amended, restated,
supplemented or modified.

(d)           References in this
Agreement to any statute shall be to such statute as amended or modified from
time to time and to any successor legislation thereto, in each case as in
effect at the time any such reference is operative.

(e)           The term “including” when used in any Loan Document means “including
without limitation” except when used in the computation of time periods.

(f)            The terms “Lender,” “Issuer” and “Administrative Agent” include, without limitation, their
respective successors.

(g)           Upon the appointment
of any successor Administrative Agent pursuant to Section 10.7
(Successor Administrative Agent), references to Citicorp in Section 10.4 (The Administrative Agent Individually)
and to Citibank in the definitions of Base Rate, Dollar Equivalent, and
Eurodollar Rate and Reference Bank shall be deemed to refer to the financial
institution then acting as the Administrative Agent or one of its Affiliates if
it so designates.

Article II

The Facility

Section 2.1            The Revolving Credit Commitments

On the terms and subject to the conditions contained
in this Agreement, each Revolving Credit Lender severally agrees to make loans
in Dollars (each a “Revolving Loan”)
to the Borrower from time to time on any Business Day during the period from
the date hereof until

 30

the Revolving Credit Termination Date in an aggregate
principal amount at any time outstanding for all such loans by such Revolving
Credit Lender not to exceed such Revolving Credit Lender’s Revolving Credit
Commitment; provided, however,
that at no time shall any Revolving Credit Lender be obligated to make a
Revolving Loan in excess of such Revolving Credit Lender’s Ratable Portion of
the Available Credit.  Within the limits
of the Revolving Credit Commitment of each Revolving Credit Lender, amounts of
Revolving Loans repaid may be reborrowed under this Section 2.1.

Section 2.2            Borrowing Procedures

(a)           Each Borrowing shall
be made on notice given by the Borrower to the Administrative Agent not later
than 11:00 a.m. (New York time) (i) one Business Day, in the case of
a Borrowing of Base Rate Loans, and (ii) three Business Days, in the case
of a Borrowing of Eurodollar Rate Loans, prior to the date of the proposed
Borrowing.  Each such notice shall be in
substantially the form of Exhibit C (Form of
Notice of Borrowing) (a “Notice of Borrowing”),
specifying (A) the date of such proposed Borrowing, (B) the aggregate
amount of such proposed Borrowing, (C) whether any portion of the proposed
Borrowing will be of Base Rate Loans or Eurodollar Rate Loans, (D) for each
Eurodollar Rate Loan, the initial Interest Period or Periods thereof and
(E) the Available Credit (after giving effect to (i) any Availability
Reserve then in effect, a notice with respect to which has been provided to the
Borrower prior to the delivery of such Notice of Borrowing, and (ii) the
proposed Borrowing).  The Revolving Loans
shall be made as Base Rate Loans unless, subject to
Section 2.14 (Special Provisions Governing Eurodollar Rate Loans),
the Notice of Borrowing specifies that all or a portion thereof shall be
Eurodollar Rate Loans.  Notwithstanding
anything to the contrary contained in Section 2.3(a)
(Swing Loans), if any Notice of
Borrowing requests a Borrowing of Base Rate Loans, the Administrative Agent may
make a Swing Loan available to the Borrower in an aggregate amount not to
exceed such proposed Borrowing, and the aggregate amount of the corresponding
proposed Borrowing shall be reduced accordingly by the principal amount of such
Swing Loan.  Each Borrowing shall be in
an aggregate amount of not less than $5,000,000 or an integral multiple of
$1,000,000 in excess thereof.

(b)           The Administrative
Agent shall give each Revolving Credit Lender a notice by not later than
2:00 p.m. (New York time) on the date a Notice of Borrowing has been
delivered to the Administrative Agent pursuant to Section
2.2(a) above of the Administrative Agent’s
receipt of such Notice of Borrowing and, if Eurodollar Rate Loans are properly
requested in such Notice of Borrowing, the applicable interest rate determined
pursuant to Section 2.14(a) (Determination of Interest
Rate).  Each Revolving Credit
Lender shall, before 11:00 a.m. (New York time) on the date of the
proposed Borrowing, make available to the Administrative Agent at its address
referred to in Section 11.8 (Notices, Etc.),
in immediately available funds, such Revolving Credit Lender’s Ratable Portion
of such proposed Borrowing.  Upon
fulfillment (or due waiver in accordance with
Section 11.1 (Amendments, Waivers, Etc.)) (i) on the
Closing Date, of the applicable conditions set forth in Section 3.1
(Conditions Precedent to Initial Loans and Letters of Credit) and
(ii) at any time (including the Closing Date), of the applicable
conditions set forth in Section 3.2
(Conditions Precedent to Each Loan and Letter of Credit), and after
the Administrative Agent’s receipt of such funds, the Administrative Agent
shall make such funds available to the Borrower.

(c)           Unless the
Administrative Agent shall have received notice from a Revolving Credit Lender
prior to the date of any proposed Borrowing that such Revolving Credit Lender
will not make available to the Administrative Agent such Revolving Credit
Lender’s 

 31
 

Ratable
Portion of such Borrowing (or any portion thereof), the Administrative Agent
may assume that such Revolving Credit Lender has made such Ratable Portion
available to the Administrative Agent on the date of such Borrowing in
accordance with this Section 2.2
and the Administrative Agent may, in reliance upon such assumption, make
available to the Borrower on such date a corresponding amount.  If and to the extent that such Revolving
Credit Lender shall not have so made such Ratable Portion available to the
Administrative Agent, such Revolving Credit Lender and the Borrower severally
agree to repay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to the Borrower until the date such amount is
repaid to the Administrative Agent, at (i) in the case of the Borrower,
the interest rate applicable at the time to the Loans comprising such Borrowing
and (ii) in the case of such Revolving Credit Lender, the Federal Funds
Rate for the first Business Day and thereafter at the interest rate applicable at
the time to the Loans comprising such Borrowing.  If such Revolving Credit Lender shall repay
to the Administrative Agent such corresponding amount, such corresponding
amount so repaid shall constitute such Revolving Credit Lender’s Loan as part
of such Borrowing for purposes of this Agreement.  If the Borrower shall repay to the
Administrative Agent such corresponding amount, such payment shall not relieve
such Revolving Credit Lender of any obligation it may have hereunder to the
Borrower.

(d)           The failure of any
Revolving Credit Lender to make on the date specified any Loan or any payment
required by it (such Lender being a “Non-Funding Lender”),
including any payment in respect of its participation in Swing Loans and Letter
of Credit Obligations, shall not relieve any other Revolving Credit Lender of
its obligations to make such Loan or payment on such date but no such other
Revolving Credit Lender shall be responsible for the failure of any Non-Funding
Lender to make a Loan or payment required under this Agreement.

Section 2.3            Swing
Loans

(a)           On the terms and
subject to the conditions contained in this Agreement, the Swing Loan Lender
may, in its sole discretion, make, in Dollars, loans (each a “Swing Loan”) otherwise available to the Borrower under the
Facility from time to time on any Business Day during the period from the date
hereof until the Revolving Credit Termination Date in an aggregate principal
amount at any time outstanding (together with the aggregate outstanding
principal amount of any other Loan made by the Swing Loan Lender hereunder in
its capacity as a Lender or the Swing Loan Lender) not to exceed the Swing Loan
Sublimit; provided, however,
that at no time shall the Swing Loan Lender make any Swing Loan to the extent
that, after giving effect to such Swing Loan, the aggregate Revolving Credit
Outstandings would exceed the Maximum Credit. 
Each Swing Loan shall be a Base Rate Loan and must be repaid in full
within fifteen days after its making or, if sooner, upon any Borrowing
hereunder and shall in any event mature no later than the Revolving Credit
Termination Date.  Within the limits set
forth in the first sentence of this clause (a),
amounts of Swing Loans repaid may be reborrowed under this clause (a).

(b)           In order to request
a Swing Loan, the Borrower shall telecopy (or forward by electronic mail or
similar means) to the Administrative Agent a duly completed request in
substantially the form of Exhibit D (Form of
Swing Loan Request), setting forth the requested amount and date of
such Swing Loan (a “Swing Loan Request”),
to be received by the Administrative Agent not later than 1:00 p.m. (New
York time) on the day of the proposed borrowing.  The Administrative Agent shall promptly
notify the Swing Loan Lender of the details of the requested Swing Loan.  Subject to the terms of this Agreement, the
Swing Loan Lender 

 32
 

may make a
Swing Loan available to the Administrative Agent and, in turn, the
Administrative Agent shall make such amounts available to the Borrower on the
date of the relevant Swing Loan Request. The Swing Loan Lender shall not make
any Swing Loan in the period commencing on the first Business Day after it
receives written notice from the Administrative Agent or any Revolving Credit
Lender that one or more of the conditions precedent contained in Section 3.2 (Conditions Precedent to Each Loan and Letter of
Credit) shall not on such date be satisfied, and ending when such
conditions are satisfied.  The Swing Loan
Lender shall not otherwise be required to determine that, or take notice
whether, the conditions precedent set forth in Section 3.2
(Conditions Precedent to Each Loan and Letter of Credit) have been
satisfied in connection with the making of any Swing Loan.

(c)           The Swing Loan
Lender shall notify the Administrative Agent in writing (which writing may be a
telecopy or electronic mail) weekly, by no later than 10:00 a.m. (New York
time) on the first Business Day of each week, of the aggregate principal amount
of its Swing Loans then outstanding.

(d)           The Swing Loan
Lender may demand at any time that each Revolving Credit Lender pay to the
Administrative Agent, for the account of the Swing Loan Lender, in the manner
provided in clause (e) below, such Revolving
Credit Lender’s Ratable Portion of all or a portion of the outstanding Swing
Loans, which demand shall be made through the Administrative Agent, shall be in
writing and shall specify the outstanding principal amount of Swing Loans
demanded to be paid.

(e)           The Administrative
Agent shall forward each notice referred to in clause (c)
above and each demand referred to in clause (d) above to each Revolving Credit Lender on the day such
notice or such demand is received by the Administrative Agent (except that any
such notice or demand received by the Administrative Agent after 2:00 p.m.
(New York time) on any Business Day or any such demand received on a day that
is not a Business Day shall not be required to be forwarded to the Revolving
Credit Lenders by the Administrative Agent until the next succeeding Business
Day), together with a statement prepared by the Administrative Agent specifying
the amount of each Revolving Credit Lender’s Ratable Portion of the aggregate
principal amount of the Swing Loans stated to be outstanding in such notice or
demanded to be paid pursuant to such demand, and, notwithstanding whether or
not the conditions precedent set forth in Sections 3.2 (Conditions
Precedent to Each Loan and Letter of Credit) and 2.1 (The Revolving Credit Commitments) shall have been
satisfied (which conditions precedent the Revolving Credit Lenders hereby
irrevocably waive), each Revolving Credit Lender shall, before 11:00 a.m.
(New York time) on the Business Day next succeeding the date of such Revolving
Credit Lender’s receipt of such notice or demand, make available to the Administrative
Agent, in immediately available funds, for the account of the Swing Loan
Lender, the amount specified in such statement. 
Upon such payment by a Revolving Credit Lender, such Revolving Credit
Lender shall, except as provided in clause (f)
below, be deemed to have made a Revolving Loan to the Borrower.  The Administrative Agent shall use such funds
to repay the Swing Loans to the Swing Loan Lender.  To the extent that any Revolving Credit
Lender fails to make such payment available to the Administrative Agent for the
account of the Swing Loan Lender, the Borrower shall repay such Swing Loan on
demand.

(f)            Upon the occurrence
of a Default under Section 9.1(f)
(Events of Default), each Revolving Credit Lender shall acquire,
without recourse or warranty, an undivided participation in each Swing Loan
otherwise required to be repaid by such Revolving Credit Lender pursuant to clause (e) above, which participation shall be in a
principal amount equal to 

 33
 

such Revolving
Credit Lender’s Ratable Portion of such Swing Loan, by paying to the Swing Loan
Lender on the date on which such Revolving Credit Lender would otherwise have
been required to make a payment in respect of such Swing Loan pursuant to clause (e) above, in immediately available funds, an
amount equal to such Revolving Credit Lender’s Ratable Portion of such Swing
Loan.  If all or part of such amount is
not in fact made available by such Revolving Credit Lender to the Swing Loan
Lender on such date, the Swing Loan Lender shall be entitled to recover any
such unpaid amount on demand from such Revolving Credit Lender together with
interest accrued from such date at the Federal Funds Rate for the first
Business Day after such payment was due and thereafter at the rate of interest
then applicable to Base Rate Loans.

(g)           From and after the
date on which any Revolving Credit Lender (i) is deemed to have made a
Revolving Loan pursuant to clause (e) above
with respect to any Swing Loan or (ii) purchases an undivided
participation interest in a Swing Loan pursuant to clause (f) above, the Swing Loan Lender shall promptly distribute
to such Revolving Credit Lender such Revolving Credit Lender’s Ratable Portion
of all payments of principal of and interest received by the Swing Loan Lender
on account of such Swing Loan other than those received from a Revolving Credit
Lender pursuant to clause (e) or
(f) above.

Section 2.4            Letters of Credit

(a)           On the terms and
subject to the conditions contained in this Agreement, each Issuer agrees to
Issue at the request of the Borrower and for the account of the Borrower (or
for the joint account of the Borrower and any of its Subsidiaries) one or more
Letters of Credit from time to time on any Business Day during the period
commencing on the Closing Date and ending on the earlier of the Revolving
Credit Termination Date and 30 days prior to the Scheduled Termination Date; provided, however, that
no Issuer shall be under any obligation to Issue (and, upon the occurrence of
any of the events described in clauses (ii),
(iii), (iv),
(v) and (vi)(A)
below, shall not Issue) any Letter of Credit upon the occurrence of any of the
following:

(i)            any
order, judgment or decree of any Governmental Authority or arbitrator shall
purport by its terms to enjoin or restrain such Issuer from Issuing such Letter
of Credit or any Requirement of Law applicable to such Issuer or any request or
directive (whether or not having the force of law) from any Governmental
Authority with jurisdiction over such Issuer shall prohibit, or request that
such Issuer refrain from, the Issuance of letters of credit generally or such
Letter of Credit in particular or shall impose upon such Issuer with respect to
such Letter of Credit any restriction or reserve or capital requirement (for
which such Issuer is not otherwise compensated) not in effect on the date of
this Agreement or result in any unreimbursed loss, cost or expense that was not
applicable, in effect or known to such Issuer as of the date of this Agreement
and that such Issuer in good faith deems material to it;

(ii)           such
Issuer shall have received any written notice of the type described in clause (d) below;

(iii)          after
giving effect to the Issuance of such Letter of Credit, the aggregate Revolving
Credit Outstandings would exceed the Maximum Credit at such time;

(iv)          after
giving effect to the Issuance of such Letter of Credit, the sum of (i) the
Dollar Equivalents of the Letter of Credit Undrawn Amounts at such time 

 34
 

and (ii) the Dollar Equivalents of the Reimbursement Obligations
at such time exceeds the Letter of Credit Sublimit;

(v)           such
Letter of Credit is requested to be denominated in any currency other than
Dollars; or

(vi)          (A) any
fees due in connection with a requested Issuance have not been paid,
(B) such Letter of Credit is requested to be Issued in a form that is not
acceptable to such Issuer or (C) the Issuer for such Letter of Credit
shall not have received, in form and substance reasonably acceptable to it and,
if applicable, duly executed by such Borrower, applications, agreements and other
documentation (collectively, a “Letter of Credit
Reimbursement Agreement”) such Issuer generally employs in the
ordinary course of its business for the Issuance of letters of credit of the
type of such Letter of Credit.

None of the Lenders (other than the Issuers in their
capacity as such) shall have any obligation to Issue any Letter of Credit.

(b)           In no event shall
the expiration date of any Letter of Credit be more than one year after the
date of issuance thereof; provided, however, that any Letter of Credit with a term less than or
equal to one year may provide for the renewal thereof for additional periods
less than or equal to one year, as long as, on or before the expiration of each
such term and each such period, the Borrower and the Issuer of such Letter of
Credit shall have the option to prevent such renewal.

(c)           In connection with
the Issuance of each Letter of Credit, the Borrower shall give the relevant
Issuer and the Administrative Agent at least two Business Days’ prior written
notice, in substantially the form of Exhibit E (Form of
Letter of Credit Request) (or in such other written or electronic
form as is acceptable to the Issuer), of the requested Issuance of such Letter
of Credit (a “Letter of Credit Request”).  Such notice shall be irrevocable and shall
specify the Issuer of such Letter of Credit, the currency of issuance and face
amount of the Letter of Credit requested, the date of Issuance of such
requested Letter of Credit, the date on which such Letter of Credit is to
expire (which date shall be a Business Day) and, in the case of an issuance,
the Person for whose benefit the requested Letter of Credit is to be
issued.  Such notice, to be effective,
must be received by the relevant Issuer and the Administrative Agent not later
than 11:00 a.m. (New York time) on the second Business Day prior to the
requested Issuance of such Letter of Credit.

(d)           Subject to the
satisfaction of the conditions set forth in this Section 2.4,
the relevant Issuer shall, on the requested date, Issue a Letter of Credit on
behalf of the Borrower in accordance with such Issuer’s usual and customary
business practices.  No Issuer shall
Issue any Letter of Credit in the period commencing on the first Business Day
after it receives written notice from any Revolving Credit Lender that one or
more of the conditions precedent contained in Section 3.2
(Conditions Precedent to Each Loan and Letter of Credit) or clause (a) above (other than those conditions set forth
in clauses (a)(i), (a)(vi)(B)
and (C) above and, to the extent such clause
relates to fees owing to the Issuer of such Letter of Credit and its
Affiliates, clause (a)(vi)(A) above) are not on
such date satisfied or duly waived and ending when such conditions are
satisfied or duly waived.  No Issuer
shall otherwise be required to determine that, or take notice whether, the
conditions precedent set forth in Section 3.2
(Conditions Precedent to 

 35
 

Each Loan and Letter of Credit) have been
satisfied in connection with the Issuance of any Letter of Credit.

(e)           The Borrower agrees
that, if requested by the Issuer of any Letter of Credit, it shall execute a
Letter of Credit Reimbursement Agreement in respect to any Letter of Credit
Issued hereunder.  In the event of any
conflict between the terms of any Letter of Credit Reimbursement Agreement and
this Agreement, the terms of this Agreement shall govern.

(f)            Each Issuer shall
comply with the following:

(i)            give
the Administrative Agent written notice (or telephonic notice confirmed
promptly thereafter in writing), which writing may be a telecopy or electronic
mail, of the Issuance of any Letter of Credit Issued by it, of all drawings
under any Letter of Credit Issued by it and of the payment (or the failure to
pay when due) by the Borrower of any Reimbursement Obligation when due (which
notice the Administrative Agent shall promptly transmit by telecopy, electronic
mail or similar transmission to each Lender);

(ii)           upon
the request of any Revolving Credit Lender, furnish to such Revolving Credit
Lender copies of any Letter of Credit Reimbursement Agreement to which such
Issuer is a party and such other documentation as may reasonably be requested
by such Revolving Credit Lender; and

(iii)          no
later than 10 Business Days following the last day of each calendar month,
provide to the Administrative Agent (and the Administrative Agent shall provide
a copy to each Lender requesting the same) and the Borrower separate schedules
for Documentary Letters of Credit and Standby Letters of Credit issued by it,
in form and substance reasonably satisfactory to the Administrative Agent,
setting forth the aggregate Letter of Credit Obligations, in each case
outstanding at the end of each month, and any information requested by the
Borrower or the Administrative Agent relating thereto.

(g)           Immediately upon the
issuance by an Issuer of a Letter of Credit in accordance with the terms and
conditions of this Agreement, such Issuer shall be deemed to have sold and
transferred to each Revolving Credit Lender, and each Revolving Credit Lender
shall be deemed irrevocably and unconditionally to have purchased and received
from such Issuer, without recourse or warranty, an undivided interest and
participation, to the extent of such Revolving Credit Lender’s Ratable Portion,
in such Letter of Credit and the obligations of the Borrower with respect
thereto (including all Letter of Credit Obligations with respect thereto) and
any security therefor and guaranty pertaining thereto.

(h)           The Borrower agrees
to pay to the Issuer of any Letter of Credit the amount of all Reimbursement
Obligations owing to such Issuer under any Letter of Credit issued for its
account no later than the date that is the next succeeding Business Day after
the Borrower receives written notice from such Issuer that payment has been made
under such Letter of Credit (the “Reimbursement Date”),
irrespective of any claim, set-off, defense or other right that the Borrower
may have at any time against such Issuer or any other Person.  In the event that any Issuer makes any
payment under any Letter of Credit and the Borrower shall not have repaid such
amount to such Issuer pursuant to this clause (h)
or any such payment by the Borrower is rescinded or set aside for any reason,
such Reimbursement Obligation shall be payable on demand with interest thereon
computed (i) from the date on which such Reimbursement 

 36
 

Obligation
arose to the Reimbursement Date, at the rate of interest applicable during such
period to Revolving Loans that are Base Rate Loans and (ii) from the
Reimbursement Date until the date of repayment in full, at the rate of interest
applicable during such period to past due Revolving Loans that are Base Rate
Loans, and such Issuer shall promptly notify the Administrative Agent, which
shall promptly notify each Revolving Credit Lender of such failure, and each
Revolving Credit Lender shall promptly and unconditionally pay to the
Administrative Agent for the account of such Issuer the amount of such
Revolving Credit Lender’s Ratable Portion of such payment (or the Dollar
Equivalent thereof if such payment was made in any currency other than Dollars)
in immediately available Dollars.  If the
Administrative Agent so notifies such Revolving Credit Lender prior to
11:00 a.m. (New York time) on any Business Day, such Revolving Credit
Lender shall make available to the Administrative Agent for the account of such
Issuer its Ratable Portion of the amount of such payment on such Business Day
in immediately available funds.  Upon
such payment by a Revolving Credit Lender, such Revolving Credit Lender shall,
except during the continuance of a Default or Event of Default under Section 9.1(f) (Events of Default) and notwithstanding
whether or not the conditions precedent set forth in Section 3.2
(Conditions Precedent to Each Loan and Letter of Credit) shall have
been satisfied (which conditions precedent the Revolving Credit Lenders hereby
irrevocably waive), be deemed to have made a Revolving Loan to the Borrower in
the principal amount of such payment. 
Whenever any Issuer receives from the Borrower a payment of a
Reimbursement Obligation as to which the Administrative Agent has received for
the account of such Issuer any payment from a Revolving Credit Lender pursuant
tothis clause (h),
such Issuer shall pay over to the Administrative Agent any amount received in
excess of such Reimbursement Obligation and, upon receipt of such amount, the
Administrative Agent shall promptly pay over to each Revolving Credit Lender,
in immediately available funds, an amount equal to such Revolving Credit Lender’s
Ratable Portion of the amount of such payment adjusted, if necessary, to
reflect the respective amounts the Revolving Credit Lenders have paid in
respect of such Reimbursement Obligation.

(i)            If and to the
extent such Revolving Credit Lender shall not have so made its Ratable Portion
of the amount of the payment required by clause (h)
above available to the Administrative Agent for the account of such Issuer,
such Revolving Credit Lender agrees to pay to the Administrative Agent for the
account of such Issuer forthwith on demand any such unpaid amount together with
interest thereon, for the first Business Day after payment was first due at the
Federal Funds Rate and, thereafter, until such amount is repaid to the
Administrative Agent for the account of such Issuer, at a rate per annum equal
to the rate applicable to Base Rate Loans under the Facility.

(j)            The Borrower’s
obligation to pay each Reimbursement Obligation and the obligations of the
Revolving Credit Lenders to make payments to the Administrative Agent for the
account of the Issuers with respect to Letters of Credit shall be absolute,
unconditional and irrevocable and shall be performed strictly in accordance
with the terms of this Agreement, under any and all circumstances whatsoever,
including the occurrence of any Default or Event of Default, and irrespective
of any of the following:

(i)            any
lack of validity or enforceability of any Letter of Credit or any Loan
Document, or any term or provision therein;

(ii)           any
amendment or waiver of or any consent to departure from all or any of the
provisions of any Letter of Credit or any Loan Document;

 37
 

(iii)          the
existence of any claim, set off, defense or other right that the Borrower, any
other party guaranteeing, or otherwise obligated with, the Borrower, any Subsidiary
or other Affiliate thereof or any other Person may at any time have against the
beneficiary under any Letter of Credit, any Issuer, the Administrative Agent or
any Lender or any other Person, whether in connection with this Agreement, any
other Loan Document or any other related or unrelated agreement or transaction;

(iv)          any
draft or other document presented under a Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect;

(v)           payment
by the Issuer under a Letter of Credit against presentation of a draft or other
document that does not comply with the terms of such Letter of Credit; and

(vi)          any
other act or omission to act or delay of any kind of the Issuer, the Lenders,
the Administrative Agent or any other Person or any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section 2.4,
constitute a legal or equitable discharge of the Borrower’s obligations
hereunder.

Any action taken or omitted to be taken by the
relevant Issuer under or in connection with any Letter of Credit, if taken or
omitted in the absence of gross negligence or willful misconduct, shall not
result in any liability of such Issuer to the Borrower or any Lender.  In determining whether drafts and other
documents presented under a Letter of Credit comply with the terms thereof, the
Issuer may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary and, in making any payment under any Letter of
Credit, the Issuer may rely exclusively on the documents presented to it under
such Letter of Credit as to any and all matters set forth therein, including
reliance on the amount of any draft presented under such Letter of Credit,
whether or not the amount due to the beneficiary thereunder equals the amount
of such draft and whether or not any document presented pursuant to such Letter
of Credit proves to be insufficient in any respect, if such document on its
face appears to be in order, and whether or not any other statement or any
other document presented pursuant to such Letter of Credit proves to be forged or
invalid or any statement therein proves to be inaccurate or untrue in any
respect whatsoever, and any noncompliance in any immaterial respect of the
documents presented under such Letter of Credit with the terms thereof shall,
in each case, be deemed not to constitute willful misconduct or gross
negligence of the Issuer.

(k)           Schedule 2.4
(Existing Letters of Credit) contains a schedule of certain letters
of credit issued prior to the Closing Date, including Existing Letters of
Credit, by Bank of America, N.A. for the account of the Borrower.  On the Closing Date (i) such letters of
credit, to the extent outstanding, shall be automatically and without further
action by the parties thereto converted to Letters of Credit issued pursuant to
this Section 2.4 for the account of the
Borrower and subject to the provisions hereof, and for this purpose the fees
specified in Section 2.12(b) (Fees) shall
be payable (in substitution for any fees set forth in the applicable letter of
credit reimbursement agreements or applications relating to such letters of
credit) as if such letters of credit had been issued on the Closing Date,
(ii) the issuers of such Letters of Credit shall be deemed to be “Issuers” hereunder solely for the purpose of maintaining
such letters of credit, for purposes of Section 2.16(f)
(Taxes) relating to the obligation to
provide the appropriate forms, 

 38
 

certificates
and statements to the Borrower and the Administrative Agent and any updates
required by Section 2.16(f) (Taxes) and for purposes of Section 2.7(c)
(Evidence of Debt) relating to the
entries to be made in the Register, (iii) the Dollar Equivalent of the
face amount of such letters of credit shall be included in the calculation of
Letter of Credit Obligations and (iv) all liabilities of the Borrower with
respect to such letters of credit shall constitute Obligations.  No letter of credit converted in accordance
with this clause (k) shall be amended,
extended or renewed without the prior written consent of the Administrative
Agent.

Section 2.5            Reduction and Termination of the
Revolving Credit Commitments

The Borrower may, upon at least three Business Days’ prior notice to
the Administrative Agent, terminate in whole or reduce in part ratably the
unused portions of the respective Revolving Credit Commitments of the Revolving
Credit Lenders; provided, however,
that each partial reduction shall be in an aggregate amount of not less than
$5,000,000 or an integral multiple of $1,000,000 in excess thereof.

Section 2.6            Repayment of Loans

The Borrower promises to repay the entire unpaid
principal amount of the Revolving Loans and the Swing Loans on the Scheduled
Termination Date or earlier, if otherwise required by the terms hereof.

Section 2.7            Evidence of Debt

(a)           Each Lender shall
maintain in accordance with its usual practice an account or accounts
evidencing Indebtedness of the Borrower to such Lender resulting from each Loan
of such Lender from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time under this
Agreement.  In addition, each Lender
having sold a participation in any of its Obligations or having identified a
Special Purpose Vehicle as such to the Administrative Agent, acting as agent of
the Borrower solely for this purpose and for tax purposes, shall establish and
maintain at its address referred to in Section 11.8
(Notices, Etc.) a record of ownership in which such Lender shall
register by book entry (i) the name and address of each such participant and
Special Purpose Vehicle (and each change thereto, whether by assignment or
otherwise) and (ii) the rights, interest or obligation of each such participant
and Special Purpose Vehicle in any Obligation, in any Revolving Credit
Commitment and in any right to receive payment hereunder.

(b)           (i)
The Administrative Agent, acting as agent of the Borrower solely for this
purpose and for tax purposes, shall establish and maintain at its address
referred to in Section 11.8 (Notices, Etc.)
a record of ownership (the “Register”) in
which the Administrative Agent agrees to register by book entry the
Administrative Agent’s, each Lender’s and each Issuer’s interest in each Loan,
each Letter of Credit and each Reimbursement Obligation, and in the right to
receive any payments hereunder and any assignment of any such interest or
rights.  In addition, the Administrative
Agent, acting as agent of the Borrower solely for this purpose and for tax
purposes, shall establish and maintain accounts in the Register in accordance
with its usual practice in which it shall record (i) the names and addresses of
the Lenders and the Issuers, (ii) the Revolving Credit Commitments of each
Lender from time to time, (iii) the amount of each Loan made and, if a
Eurodollar Rate Loan, the Interest Period applicable thereto, (iv) the 

 39
 

amount of any drawn Letters of Credit, (v) the amount of any principal
or interest due and payable, and paid, by the Borrower to, or for the account
of, each Lender hereunder, (vi) the amount that is due and payable, and paid,
by the Borrower to, or for the account of, each Issuer, including the amount of
Letter Credit Obligations (specifying the amount of any Reimbursement
Obligations) due and payable to an Issuer, and (vii) the amount of any sum
received by the Administrative Agent hereunder from the Borrower, whether such
sum constitutes principal or interest (and the type of Loan to which it
applies), fees, expenses or other amounts due under the Loan Documents and each
Lender’s and Issuer’s, as the case may be, share thereof, if applicable.

(ii)           Notwithstanding
anything to the contrary contained in this Agreement, the Loans (including the
Revolving Credit Notes evidencing such Loans) and the drawn Letters of Credit
are registered obligations and the right, title, and interest of the Lenders
and the Issuers and their assignees in and to such Loans or drawn Letters of
Credit, as the case may be, shall be transferable only upon notation of such
transfer in the Register.  A Revolving
Credit Note shall only evidence the Lender’s or a registered assignee’s right,
title and interest in and to the related Loan, and in no event is any such
Revolving Credit Note to be considered a bearer instrument or obligation.  This Section 2.7(b)
and Section 11.2 (Assignments
and Participations) shall be construed so that the Loans and drawn
Letters of Credit are at all times maintained in “registered
form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2)
of the Code and any related regulations (or any successor provisions of the
Code or such regulations).

(c)           The entries made in
the Register and in the accounts therein maintained pursuant to clauses (a) and (b) above
shall, to the extent permitted by applicable law, be prima facie
evidence of the existence and amounts of the obligations recorded therein; provided, however, that
the failure of any Lender or the Administrative Agent to maintain such accounts
or any error therein shall not in any manner affect the obligations of the
Borrower to repay the Loans in accordance with their terms.  In addition, the Loan Parties, the
Administrative Agent, the Lenders and the Issuers shall treat each Person whose
name is recorded in the Register as a Lender or as an Issuer, as applicable,
for all purposes of this Agreement. 
Information contained in the Register with respect to any Lender or
Issuer shall be available for inspection by the Borrower, the Administrative
Agent, such Lender or such Issuer at any reasonable time and from time to time
upon reasonable prior notice.

(d)           Notwithstanding any
other provision of the Agreement, in the event that any Revolving Credit Lender
requests that the Borrower execute and deliver a promissory note or notes
payable to such Revolving Credit Lender in order to evidence the Indebtedness
owing to such Revolving Credit Lender by the Borrower hereunder, the Borrower
shall promptly execute and deliver a Revolving Credit Note or Revolving Credit
Notes to such Revolving Credit Lender evidencing the Revolving Loans of such
Revolving Credit Lender, substantially in the form of Exhibit B
(Form of Revolving Credit Note).

Section 2.8            Optional Prepayments

The Borrower may prepay the outstanding principal
amount of the Revolving Loans and Swing Loans in whole or in part at any time; provided, however, that
if any prepayment of any Eurodollar Rate Loan is made by the Borrower other
than on the last day of an Interest Period for such Loan, the Borrower shall
also pay any amount owing pursuant to Section 2.14(e)
(Breakage Costs).

 40

Section 2.9            Mandatory Prepayments

(a)           Upon receipt by any
Group Member of Net Cash Proceeds arising from an Asset Sale of any Collateral,
the Borrower shall immediately prepay the Loans (or provide cash collateral in
respect of Letters of Credit) in an amount equal to 100% of such Net Cash
Proceeds.  Any such mandatory prepayment
shall be applied in accordance with clause (b)
below.

(b)           Subject to the
provisions of Section 2.13(g) (Payments and Computations), any prepayments made by the
Borrower required to be applied in accordance with this clause (b)
shall be applied as follows: first, to repay
the outstanding principal balance of the Swing Loans until such Swing Loans
shall have been repaid in full; second, to
repay the outstanding principal balance of the Revolving Loans until such
Revolving Loans shall have been paid in full; and then,
if an Event of Default has occurred and is continuing, to provide cash
collateral for any Letter of Credit Obligations in an amount equal to 105% of
such Letter of Credit Obligations in the manner set forth in Section 9.3 (Actions in Respect of Letters of Credit)
until all such Letter of Credit Obligations have been fully cash collateralized
in the manner set forth therein.

(c)           If at any time, the
aggregate principal amount of Revolving Credit Outstandings exceeds the
aggregate Maximum Credit at such time, the Borrower shall forthwith prepay the
Swing Loans first and then the Revolving Loans then outstanding in an amount
equal to such excess.  If any such excess
remains after repayment in full of the aggregate outstanding Swing Loans and
Revolving Loans, the Borrower shall provide cash collateral for the Letter of
Credit Obligations in the manner set forth in Section 9.3
(Actions in Respect of Letters of Credit) in an amount equal to 105%
of such excess.

(d)           The Borrower hereby
irrevocably waives the right to direct, during a Liquidity Event Period, the
application of all funds in the Cash Collateral Account and agrees that the
Administrative Agent may and, upon the written direction of the Requisite
Lenders given at any time during such Liquidity Event Period, shall
(i) deliver a Blockage Notice to each Deposit Account Bank for each
Approved Deposit Account and (ii) except, as provided in Section 2.13(g) (Payments and Computations)
and clause (b) above,following the occurrence and during the continuance of an
Event of Default, apply all payments in respect of any Obligations and all
available funds in the Cash Collateral Account on a daily basis as follows: first,to repay the
outstanding principal amount of the Swing Loans until such Swing Loans have
been repaid in full; second, to
repay the outstanding principal balance of the Revolving Loans until such
Revolving Loans shall have been repaid in full; and then to
any other Obligation then due and payable. 
The Administrative Agent agrees to apply such funds and the Borrower
consents to such application.  If
(i) following such application, (ii) outside of a Liquidity Event
Period or (iii) after all Letters of Credit shall have expired or be fully
drawn and all Revolving Credit Commitments shall have been terminated, there
are no Loans outstanding and no other Obligations that are then due and payable
(and, if an Event of Default shall have occurred and be continuing, cash collateral
has been provided in an amount equal to 105% of the Letter of Credit
Obligations in the manner required in Section 9.3 (Actions
in Respect of Letters of Credit)), then the Administrative Agent
shall cause any remaining funds in the Cash Collateral Account to be paid at
the written direction of the Borrower (or, in the absence of such direction, to
the Borrower or another Person lawfully entitled thereto).

(e)           At any time during a
Liquidity Event Period, subject to Section 2.9(d)
all amounts collected in the Concentration Account pursuant to Section 7.11 (Cash Management) 

 41
 

shall be
applied on each Business Day by the Administrative Agent first,
to prepay the Loans (including Swing Loans) and then,
if an Event of Default shall have occurred and be continuing, to provide cash
collateral for any Letter of Credit Obligations in an amount equal to 105% of
such Letter of Credit Obligations in the manner set forth in Section 9.3 (Actions in Respect of Letters of Credit)
until all such Letter of Credit Obligations have been fully cash collateralized
in the manner set forth therein. 
Following such application, the Administrative Agent shall, subject to Section 2.9(d) cause any remaining funds in the
Concentration Account to be paid at the written direction of the Borrower (or,
in the absence of such direction, to the Borrower or another Person lawfully
entitled thereto).

Section 2.10         Interest

(a)           Rate of
Interest.  All Loans and the
outstanding amount of all other Obligations (other than pursuant to Hedging
Contracts that are Loan Documents, to the extent such Hedging Contracts provide
for the accrual of interest on unpaid obligations) shall bear interest, in the
case of Loans, on the unpaid principal amount thereof from the date such Loans
are made and, in the case of such other Obligations, from the date such other
Obligations are due and payable until, in all cases, paid in full, except as
otherwise provided in clause (c)
below, as follows:

(i)            if
a Base Rate Loan or such other Obligation, at a rate per annum equal to the sum
of (A) the Base Rate as in effect from time to time and (B) the
Applicable Margin for Revolving Loans that are Base Rate Loans; and

(ii)           if
a Eurodollar Rate Loan, at a rate per annum equal to the sum of (A) the
Eurodollar Rate determined for the applicable Interest Period and(B) the Applicable Margin in effect from time to time
during such Eurodollar Interest Period.

(b)           Interest
Payments.  (i) Interest
accrued on each Base Rate Loan (other than Swing Loans) shall be payable in
arrears (A) on the first Business Day of each calendar quarter, commencing
on the first such day following the making of such Base Rate Loan and
(B) if not previously paid in full, at maturity (whether by acceleration
or otherwise) of such Base Rate Loan, (ii) interest accrued on Swing Loans
shall be payable in arrears on the first Business Day of the immediately
succeeding calendar month, (iii) interest accrued on each Eurodollar Rate
Loan shall be payable in arrears (A) on the last day of each Interest Period
applicable to such Loan and, if such Interest Period has a duration of more
than three months, on each date during such Interest Period occurring every
three months from the first day of such Interest Period, (B) upon the
payment or prepayment thereof in full or in part and (C) if not previously
paid in full, at maturity (whether by acceleration or otherwise) of such
Eurodollar Rate Loan and (iv) interest accrued on the amount of all other
Obligations shall be payable on demand from and after the time such Obligation
becomes due and payable (whether by acceleration or otherwise).

(c)           Default
Interest.  Notwithstanding the
rates of interest specified in clause (a)
above or elsewhere herein, upon (i) the occurrence of an Event of Default
specified in Section 9.1(a), (b), or (f) (Events of Default) and (ii) the election of the
Administrative Agent or the Requisite Lenders (in their sole discretion) with
respect to any other Event of Default (and following written notice thereof to
the Borrower) and for as long thereafter as such Event of Default shall be
continuing, the principal balance of all Loans and the amount of all other
Obligations then due and payable shall, commencing, in the case of clause (i) above, on the date when the applicable Event of
Default first occurred and, in the case of clause (ii)
above, on the 

 42
 

date of
delivery of the written notice as provided therein, bear interest at a rate
that is two percent per annum in excess of the rate of interest applicable to
such Loans or other Obligations from time to time.  Such interest shall be payable on the date
that would otherwise be applicable to such interest pursuant to clause (b) above or otherwise on demand.

Section 2.11         Conversion/Continuation Option

(a)           The Borrower may
elect (i) at any time on any Business Day, to convert Base Rate Loans
(other than Swing Loans) or any portion thereof to Eurodollar Rate Loans and
(ii) at the end of any applicable Interest Period, to convert Eurodollar
Rate Loans or any portion thereof into Base Rate Loans or to continue such
Eurodollar Rate Loans or any portion thereof for an additional Interest Period;
provided, however,
that the aggregate amount of the Eurodollar Loans for each Interest Period must
be in the amount of at least $1,000,000 or an integral multiple of $1,000,000
in excess thereof.  Each conversion or
continuation shall be allocated among the Loans of each Revolving Credit Lender
in accordance with such Revolving Credit Lender’s Ratable Portion.  Each such election shall be in substantially
the form of Exhibit F (Form of Notice of Conversion or
Continuation) (a “Notice of Conversion or
Continuation”) and shall be made by giving the Administrative Agent
at least three Business Days’ prior written notice specifying (A) the
amount and type of Loan being converted or continued, (B) in the case of a
conversion to or a continuation of Eurodollar Rate Loans, the applicable
Interest Period and (C) in the case of a conversion, the date of such
conversion.

(b)           The Administrative
Agent shall give to each Lender a notice by not later than 2:00 p.m. (New York
time) on the date a Notice of Conversion or Continuation has been delivered to
the Administrative Agent pursuant to Section 2.11(a) above
of the Administrative Agent’s receipt of such Notice of Conversion or
Continuation and of the options selected therein.  Notwithstanding the foregoing, (i) no
conversion in whole or in part of Base Rate Loans to Eurodollar Rate Loans
having an Interest Period of longer than one month shall be permitted at any
time prior to the Syndication Completion Date and (ii) no conversion in
whole or in part of Base Rate Loans to Eurodollar Rate Loans and no
continuation in whole or in part of Eurodollar Rate Loans upon the expiration
of any applicable Interest Period shall be permitted at any time at which
(A) a Default or an Event of Default shall have occurred and be continuing
or (B) the continuation of, or conversion into, a Eurodollar Rate Loan
would violate any provision of Section 2.14 (Special
Provisions Governing Eurodollar Rate Loans).  If, within the time period required under the
terms of this Section 2.11, the
Administrative Agent does not receive a Notice of Conversion or Continuation
from the Borrower containing a permitted election to continue any Eurodollar
Rate Loans for an additional Interest Period or to convert any such Loans,
then, upon the expiration of the applicable Interest Period, such Loans shall
be automatically converted to Base Rate Loans. 
Each Notice of Conversion or Continuation shall be irrevocable.

Section 2.12         Fees

(a)           Unused
Commitment Fee.  The Borrower
agrees to pay in immediately available Dollars to each Revolving Credit Lender
a commitment fee on the actual daily amount by which the Revolving Credit
Commitment of such Revolving Credit Lender exceeds such Revolving Credit Lender’s
Ratable Portion of the sum of (i) the aggregate outstanding principal
amount of Revolving Loans and (ii) the outstanding amount of the aggregate
Letter of Credit Obligations (the “Unused Commitment Fee”)
from the date hereof through the Revolving Credit Termination Date at the
Unused Commitment Fee Rate, payable in arrears (x) on the first 

 43
 

Business Day
of each calendar quarter, commencing on the first such Business Day following
the Closing Date and (y) on the Revolving Credit Termination Date.

(b)           Letter of
Credit Fees.  The Borrower
agrees to pay the following amounts with respect to Letters of Credit issued by
any Issuer:

(i)            to
the Administrative Agent for the account of each Issuer of a Letter of Credit,
with respect to each Letter of Credit issued by such Issuer, an issuance fee
equal to 0.125% per annum of the Dollar Equivalent of the maximum undrawn face
amount of such Letter of Credit, payable in arrears (A) on the first
Business Day of each calendar quarter, commencing on the first such Business
Day following the issuance of such Letter of Credit and (B) on the
Revolving Credit Termination Date;

(ii)           to
the Administrative Agent for the ratable benefit of the Revolving Credit
Lenders, with respect to each Letter of Credit, a fee accruing in Dollars at a
rate per annum equal to the Applicable Margin for Revolving Loans that are
Eurodollar Rate Loans on the maximum undrawn face amount of such Letter of
Credit, payable in arrears (A) on the first Business Day of each calendar
quarter, commencing on the first such Business Day following the issuance of
such Letter of Credit and (B) on the Revolving Credit Termination Date; provided, however, that
during the continuance of an Event of Default (to the extent that additional
interest accrues on the Loans or other Obligations pursuant to Section 2.10(c) (Default Interest)), such fee shall be
increased by two percent per annum (instead of, and not in addition to, any
increase pursuant to Section 2.10(c)
(Default Interest)) and shall be payable
on demand; and

(iii)          to
the Issuer of any Letter of Credit, with respect to the issuance, amendment or
transfer of each Letter of Credit and each drawing made thereunder, documentary
and processing charges in accordance with such Issuer’s standard schedule for
such charges in effect at the time of issuance, amendment, transfer or drawing,
as the case may be.

(c)           Additional
Fees.  The Borrower has agreed
to pay to the Administrative Agent and the Arranger additional fees, the amount
and dates of payment of which are embodied in the Fee Letter.

Section 2.13         Payments and Computations

(a)           The Borrower shall
make each payment hereunder (including fees and expenses) not later than
11:00 a.m. (New York time) on the day when due, in the currency specified
herein (or, if no such currency is specified, in Dollars) to the Administrative
Agent at its address referred to in Section 11.8
(Notices, Etc.) in immediately available funds without set-off or
counterclaim.  The Administrative Agent
shall promptly thereafter cause to be distributed immediately available funds
relating to the payment of principal, interest or fees to the Lenders, in
accordance with the application of payments set forth in clause (f)
or (g) below, as applicable, for the
account of their respective Applicable Lending Offices; provided, however, that amounts payable pursuant to Section 2.15 (Capital Adequacy), Section 2.16
(Taxes) or Section 2.14(c)
or (d) (Special Provisions Governing Eurodollar Rate
Loans) shall be paid only to the affected Lender or Lenders and
amounts payable with respect to Swing Loans shall be paid only to the Swing
Loan Lender.  Payments received by the
Administrative Agent after 11:00 a.m. (New York time) shall be deemed to
be received on the next Business Day.

 44
 

(b)           All computations of
interest and of fees shall be made by the Administrative Agent on the basis of
a year of 360 days (or, in the case of interest accruing at the Base Rate, 365
days or 366 days, as applicable), in each case for the actual number of days
(including the first day but excluding the last day) occurring in the period
for which such interest and fees are payable. 
Each determination by the Administrative Agent of a rate of interest
hereunder shall be conclusive and binding for all purposes, absent manifest
error.

(c)           Each payment by the
Borrower of any Loan, Reimbursement Obligation (including interest or fees in
respect thereof) and each reimbursement of various costs, expenses or other
Obligation shall be made in the currency in which such Loan was made, such
Letter of Credit issued or such cost, expense or other Obligation was incurred;
provided, however,
that (i) the Letter of Credit Reimbursement Agreement for a Letter of
Credit may specify another currency for the Reimbursement Obligation in respect
of such Letter of Credit and (ii) other than for payments in respect of a
Loan or Reimbursement Obligation, Loan Documents duly executed by the
Administrative Agent or any Hedging Contract may specify other currencies of
payment for Obligations created by or directly related to such Loan Document or
Hedging Contract.

(d)           Whenever any payment
hereunder shall be stated to be due on a day other than a Business Day, the due
date for such payment shall be extended to the next succeeding Business Day,
and such extension of time shall in such case be included in the computation of
payment of interest or fees, as the case may be; provided, however, that if such extension would cause payment of
interest on or principal of any Eurodollar Rate Loan to be made in the next
calendar month, such payment shall be made on the immediately preceding
Business Day.  All repayments of any
Revolving Loans shall be applied as follows: first,
to repay such Loans outstanding as Base Rate Loans and then,
to repay such Loans outstanding as Eurodollar Rate Loans, with those Eurodollar
Rate Loans having earlier expiring Eurodollar Interest Periods being repaid
prior to those having later expiring Eurodollar Interest Periods.

(e)           Unless the
Administrative Agent shall have received notice from the Borrower to the
Lenders prior to the date on which any payment is due hereunder that the
Borrower will not make such payment in full, the Administrative Agent may
assume that the Borrower has made such payment in full to the Administrative
Agent on such date and the Administrative Agent may, in reliance upon such
assumption, cause to be distributed to each Lender on such due date an amount
equal to the amount then due such Lender. 
If and to the extent that the Borrower shall not have made such payment
in full to the Administrative Agent, each Lender shall repay to the
Administrative Agent forthwith on demand such amount distributed to such Lender
together with interest thereon (at the Federal Funds Rate for the first
Business Day and thereafter at the rate applicable to Base Rate Loans) for each
day from the date such amount is distributed to such Lender until the date such
Lender repays such amount to the Administrative Agent.

(f)            Except for payments
and other amounts received by the Administrative Agent and applied in
accordance with the provisions of clause (g) below
(or required to be applied in accordance with Section 2.9(b)
or (d) (Mandatory Prepayments)), all
payments and any other amounts received by the Administrative Agent from or for
the benefit of the Borrower shall be applied as follows: first,
to pay principal of, and interest on, any portion of the Loans the
Administrative Agent may have advanced pursuant to the express provisions of
this Agreement on behalf of any Lender, for which the Administrative Agent has
not then been reimbursed by such Lender or the Borrower, second,
to pay all other Obligations then due and payable and third,
as the Borrower so designates.  Payments
in respect of Swing Loans received by the 

 45
 

Administrative
Agent shall be distributed to the Swing Loan Lender; payments in respect of
Revolving Loans received by the Administrative Agent shall be distributed to
each Revolving Credit Lender in accordance with such Revolving Credit Lender’s
Ratable Portion; and all payments of fees and all other payments in respect of
any other Obligation shall be allocated among such of the Lenders and Issuers
as are entitled thereto and, for such payments allocated to the Revolving
Credit Lenders, in proportion to their respective Ratable Portions.

(g)           Notwithstanding the
provisions of Section 2.9(d) (Mandatory Prepayments)
above, the Borrower hereby irrevocably waives the right to direct the
application of any and all payments in respect of the Obligations and any
proceeds of Collateral after the occurrence and during the continuance of an
Event of Default and agrees that, notwithstanding the provisions of Section 2.9(b) (Mandatory Prepayments)
and clause (f) above, the
Administrative Agent may, and, upon either (A) the written direction of
the Requisite Lenders or (B) the acceleration of the Obligations pursuant
to Section 9.2 (Remedies), shall,
deliver a Blockage Notice to each Deposit Account Bank for each Approved
Deposit Account and apply all payments in respect of any Obligations and all
funds on deposit in any Cash Collateral Account and all other proceeds of
Collateral in the following order:

(i)            first, to pay interest on and then
principal of any portion of the Revolving Loans that the Administrative Agent
may have advanced on behalf of any Lender for which the Administrative Agent
has not then been reimbursed by such Lender or the Borrower;

(ii)           second, to pay Secured Obligations
in respect of any expense reimbursements or indemnities and Cash Management
Obligations then due to the Administrative Agent;

(iii)          third, to pay Secured Obligations in
respect of any expense reimbursements or indemnities and Cash Management
Obligations then due to the Lenders and the Issuers;

(iv)          fourth, to pay Secured Obligations
in respect of any fees then due to the Administrative Agent, the Lenders and
the Issuers;

(v)           fifth, to pay interest then due and
payable in respect of the Loans and Reimbursement Obligations;

(vi)          sixth, to pay or prepay principal
amounts on the Loans and Reimbursement Obligations, to provide cash collateral
for outstanding Letter of Credit Undrawn Amounts in the manner described in Section 9.3 (Actions in Respect of Letters of Credit),
and to pay Cash Management Obligations and amounts owing with respect to
Hedging Contracts, ratably to the aggregate principal amount of such Loans,
Reimbursement Obligations and Letter of Credit Undrawn Amounts, Cash Management
Obligations, and Obligations owing with respect to Hedging Contracts; and

(vii)         seventh, to the ratable payment of
all other Secured Obligations;

provided, however,
that if sufficient funds are not available to fund all payments to be made in
respect of any Secured Obligation described in any of clauses(i), (ii), (iii), (iv), (v), (vi) and (vii) above the
available funds being applied with respect to any such Secured Obligation
(unless 

 46
 

otherwise specified in such clause) shall be allocated
to the payment of such Secured Obligation ratably, based on the proportion of
the Administrative Agent’s and each Lender’s or Issuer’s interest in the
aggregate outstanding Secured Obligations described in such clauses; provided, however, that
payments that would otherwise be allocated to the Revolving Credit Lenders
shall be allocated first to repay
Protective Advances and Swing Loans pro rata until
such Protective Advances and Swing Loans are paid in full and then to repay the Revolving Loans.  The order of priority set forth in clauses(i),
(ii), (iii),
(iv), (v),
(vi) and (vii)
above may at any time and from time to time be changed by the agreement of the
Requisite Lenders without necessity of notice to or consent of or approval by
the Borrower, any Secured Party that is not a Lender or Issuer or by any other
Person that is not a Lender or Issuer. 
The order of priority set forth in clauses (i),
(ii), (iii)
and (iv) above may be changed only with the
prior written consent of the Administrative Agent in addition to that of the
Requisite Lenders.

(h)           At the option of the
Administrative Agent, principal on the Swing Loans, Reimbursement Obligations,
interest, fees, expenses and other sums due and payable in respect of the
Revolving Loans and Protective Advances may be paid from the proceeds of Swing
Loans or Revolving Loans.  The Borrower
hereby authorizes the Swing Loan Lender to make such Swing Loans pursuant to Section 2.3(a) (Swing Loans) and the Revolving Credit
Lenders to make such Revolving Loans pursuant to Section 2.2(a)
(Borrowing Procedures) from time to time in the amounts of any and
all principal payable with respect to the Swing Loans, Reimbursement
Obligations, interest, fees, expenses and other sums payable in respect of the
Revolving Loans and Protective Advances, and further authorizes the
Administrative Agent to give the Lenders notice of any Borrowing with respect
to such Swing Loans and Revolving Loans and to distribute the proceeds of such
Swing Loans and Revolving Loans to pay such amounts.  The Borrower agrees that all such Swing Loans
and Revolving Loans so made shall be deemed to have been requested by it
(irrespective of the satisfaction of the conditions in Section 3.2
(Conditions Precedent to Each Loan and Letter of Credit), which
conditions the Lenders irrevocably waive) and directs that all proceeds thereof
shall be used to pay such amounts.

Section 2.14         Special Provisions Governing Eurodollar
Rate Loans

(a)           Determination of Interest Rate

The Eurodollar Rate for each Interest Period for
Eurodollar Rate Loans shall be determined by the Administrative Agent pursuant
to the procedures set forth in the definition of “Eurodollar
Rate.”  The Administrative
Agent’s determination shall be presumed to be correct absent manifest error and
shall be binding on the Borrower.

(b)           Interest
Rate Unascertainable, Inadequate or Unfair

In the event that (i) the Administrative Agent determines
that adequate and fair means do not exist for ascertaining the applicable
interest rates by reference to which the Eurodollar Rate then being determined
is to be fixed or (ii) the Requisite Lenders notify the Administrative
Agent that the Eurodollar Rate for any Interest Period will not adequately
reflect the cost to the Revolving Credit Lenders of making or maintaining such
Loans for such Interest Period, the Administrative Agent shall forthwith so
notify the Borrower and the Revolving Credit Lenders, whereupon each Eurodollar
Loan shall automatically, on the last day of the current Interest Period for
such Loan, convert into a Base Rate Loan and the obligations of the Revolving
Credit Lenders to make Eurodollar Rate Loans or to convert Base Rate Loans into
Eurodollar Rate Loans shall be suspended until the Administrative Agent shall
notify the Borrower that the 

 47
 

Requisite Lenders have determined that the
circumstances causing such suspension no longer exist.

(c)           Increased Costs

If at any time any Revolving Credit Lender determines
that the introduction of, or any change in or in the interpretation of, any
law, treaty or governmental rule, regulation or order (other than any change by
way of imposition or increase of reserve requirements included in determining
the Eurodollar Rate) or the compliance by such Revolving Credit Lender with any
guideline, request or directive from any central bank or other Governmental
Authority (whether or not having the force of law), shall have the effect of
increasing the cost to such Revolving Credit Lender of agreeing to make or
making, funding or maintaining any Eurodollar Rate Loans, then the Borrower
shall from time to time, upon demand by such Revolving Credit Lender (with a
copy of such demand to the Administrative Agent), pay to the Administrative
Agent for the account of such Revolving Credit Lender additional amounts
sufficient to compensate such Revolving Credit Lender for such increased
cost.  A certificate as to the amount of
such increased cost, setting forth in reasonable detail the basis for the
amount so determined, submitted to the Borrower and the Administrative Agent by
such Revolving Credit Lender, shall be conclusive and binding for all purposes,
absent manifest error.

The Borrower shall pay to each Lender, as long as such
Lender shall be required to maintain reserves with respect to Eurocurrency
Liabilities, or under any similar or successor regulation with respect
Eurocurrency Liabilities or Eurocurrency funding, additional interest on the
unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs
of such reserves allocated to such Eurodollar Rate Loan by such Lender (as
determined by such Lender in good faith, which determination shall be
conclusive), which shall be due and payable on each date on which interest is
payable on such Eurodollar Rate Loan, provided, however,
the Borrower shall have received at least 10 days’ prior notice (with a copy to
the Administrative Agent) of a request to be paid such additional interest from
such Lender.  If a Lender fails to give
notice 10 days prior to the relevant interest payment date, such additional
interest shall be due and payable 10 days from receipt of such notice.

(d)           Illegality

Notwithstanding any other provision of this Agreement,
if any Revolving Credit Lender determines that the introduction of, or any
change in or in the interpretation of, any law, treaty or governmental rule,
regulation or order after the date of this Agreement shall make it unlawful, or
any central bank or other Governmental Authority shall assert that it is
unlawful, for any Revolving Credit Lender or its Eurodollar Lending Office to
make Eurodollar Rate Loans or to continue to fund or maintain Eurodollar Rate
Loans, then, on notice thereof and demand therefor by such Revolving Credit
Lender to the Borrower through the Administrative Agent, (i) the
obligation of such Revolving Credit Lender to make or to continue Eurodollar
Rate Loans and to convert Base Rate Loans into Eurodollar Rate Loans shall be
suspended, and each such Revolving Credit Lender shall make a Base Rate Loan as
part of any requested Borrowing of Eurodollar Rate Loans and (ii) if the
affected Eurodollar Rate Loans are then outstanding, the Borrower shall
immediately convert each such Loan into a Base Rate Loan.  If, at any time after a Revolving Credit
Lender gives notice under this clause (d),
such Revolving Credit Lender determines that it may lawfully make Eurodollar
Rate Loans, such Revolving Credit Lender shall promptly give notice of that determination
to the Borrower and the Administrative Agent, and the Administrative Agent
shall promptly transmit the notice to each other Lender.  The Borrower’s 

 48
 

right to request, and such Revolving Credit Lender’s
obligation, if any, to make Eurodollar Rate Loans shall thereupon be restored.

(e)           Breakage
Costs

In addition to all amounts required to be paid by the
Borrower pursuant to Section 2.10
(Interest), the Borrower shall compensate each Revolving Credit
Lender, upon demand, for all losses, expenses and liabilities (including any
loss or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by such Revolving Credit Lender to fund or
maintain such Revolving Credit Lender’s Eurodollar Rate Loans to the Borrower
but excluding any loss of the Applicable Margin on the relevant Loans) that
such Revolving Credit Lender may sustain (i) if for any reason (other than
solely by reason of such Lender being a Non-Funding Lender) a proposed
Borrowing, conversion into or continuation of Eurodollar Rate Loans does not
occur on a date specified therefor in a Notice of Borrowing or a Notice of
Conversion or Continuation given by the Borrower or in a telephonic request by
it for borrowing or conversion or continuation or a successive Interest Period
does not commence after notice therefor is given pursuant to Section 2.11 (Conversion/Continuation Option),
(ii) if for any reason any Eurodollar Rate Loan is prepaid (including
mandatorily pursuant to Section 2.9
(Mandatory Prepayments)) on a date that is not the last day of the
applicable Interest Period, (iii) as a consequence of a required
conversion of a Eurodollar Rate Loan to a Base Rate Loan as a result of any of
the events indicated in clause (d)
above or (iv) as a consequence of any failure by the Borrower to repay
Eurodollar Rate Loans when required by the terms hereof.  The Revolving Credit Lender making demand for
such compensation shall deliver to the Borrower concurrently with such demand a
written statement setting forth in reasonable detail the basis for the amount
so determined as to such losses, expenses and liabilities, and this statement
shall be conclusive as to the amount of compensation due to such Revolving
Credit Lender, absent manifest error.

Section 2.15         Capital Adequacy

If at any time any Lender determines that (a) the
adoption of, or any change in or in the interpretation of, any law, treaty or
governmental rule, regulation or order after the date of this Agreement
regarding capital adequacy, (b) compliance with any such law, treaty,
rule, regulation or order or (c) compliance with any guideline or request
or directive from any central bank or other Governmental Authority (whether or
not having the force of law) shall have the effect of reducing the rate of return
on such Lender’s (or any corporation controlling such Lender’s) capital as a
consequence of its obligations hereunder or under or in respect of any Letter
of Credit to a level below that which such Lender or such corporation could
have achieved but for such adoption, change, compliance or interpretation,
then, upon demand from time to time by such Lender (with a copy of such demand
to the Administrative Agent), the Borrower shall pay to the Administrative
Agent for the account of such Lender, from time to time as specified by such
Lender, additional amounts sufficient to compensate such Lender for such
reduction.  A certificate as to such
amounts submitted to the Borrower and the Administrative Agent by such Lender
shall be conclusive and binding for all purposes absent manifest error.

Section 2.16         Taxes

(a)           Except as otherwise
provided in this Section 2.16, any and all
payments by any Loan Party under each Loan Document shall be made free and
clear of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or 

 49
 

withholdings,
and all liabilities with respect thereto, excluding (i) in the case of
each Lender, each Issuer and the Administrative Agent (A) taxes measured
by its net income, and franchise taxes imposed on it, and similar taxes imposed
by the jurisdiction (or any political subdivision thereof) under the laws of
which such Lender, such Issuer or the Administrative Agent (as the case may be)
is organized or in which such Lender’s, Issuer’s, or Administrative Agent’s
principal office is located or in which such Lender’s, Issuer’s, or
Administrative Agent’s Applicable Lending Office is located and (B) any
U.S. withholding taxes payable with respect to payments under the Loan
Documents under laws (including any statute, treaty or regulation) in effect on
the Closing Date (or, in the case of (x) an Eligible Assignee, the date of the
Assignment and Acceptance, (y) a successor Administrative Agent, the date of
the appointment of such Administrative Agent, and (z) a successor Issuer, the
date such Issuer becomes an Issuer) applicable to such Lender, such Issuer or
the Administrative Agent, as the case may be, but not excluding any U.S.
withholding taxes payable as a result of any change in such laws occurring after
the Closing Date (or the date of such Assignment and Acceptance or the date of
such appointment of such Administrative Agent or the date such Issuer becomes
an Issuer) so long as, in the case of any Non-U.S. Lender, such Non-U.S. Lender
has complied with Section 2.16(f) hereof and
(ii) in the case of each Lender or each Issuer, taxes measured by its net
income and franchise taxes imposed on it as a result of a present or former
connection between such Lender or such Issuer (as the case may be) and the jurisdiction
of the Governmental Authority imposing such tax or any taxing authority thereof
or therein (all such non-excluded taxes, levies, imposts, deductions, charges,
withholdings and liabilities being hereinafter referred to as “Taxes”).  If any Taxes
shall be required by law to be deducted from or in respect of any sum payable
under any Loan Document to any Lender, any Issuer or the Administrative Agent
(w) the sum payable shall be increased as may be necessary so that, after
making all required deductions (including deductions applicable to additional
sums payable under this Section 2.16),
such Lender, such Issuer or the Administrative Agent (as the case may be)
receives an amount equal to the sum it would have received had no such
deductions been made, (x) the relevant Loan Party shall make such
deductions, (y) the relevant Loan Party shall pay the full amount deducted
to the relevant taxing authority or other authority in accordance with
applicable law and (z) the relevant Loan Party shall deliver to the
Administrative Agent evidence of such payment.

(b)           In addition, each
Loan Party agrees to pay any present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies of the United
States or any political subdivision thereof or any applicable foreign
jurisdiction, and all liabilities with respect thereto, in each case arising
from any payment made under any Loan Document or from the execution, delivery
or registration of, or otherwise with respect to, any Loan Document
(collectively, “Other Taxes”).  Each Loan Party authorizes the Administrative
Agent to pay such Other Taxes in the name of such Loan Party and, for such
purpose, to submit a Notice of Borrowing for Revolving Loans in the currency
such Other Taxes are owed (or, if not available, in Dollars) (i) after the
occurrence of any Event of Default and in respect of any event occurring on the
Closing Date and (ii) otherwise, with the consent of such Loan Party, in
the name of the Loan Party owing such Other Taxes and in an aggregate principal
amount not to exceed all amounts owing in respect of such Other Taxes.  If such a Notice of Borrowing is prepared by
the Administrative Agent, the Borrowing corresponding thereto shall be made
without regard to the conditions precedent set forth in Section 3.2
(Conditions Precedent to Each Loan and Letter of Credit) and the
proceeds thereof shall be disbursed to the Administrative Agent in the name of
the Borrower and shall be used by the Administrative Agent solely to pay such
Other Taxes (any excess thereof to be used to repay such Borrowing).  The Administrative Agent may also make Swing
Loans and Protective Advances to pay such Other Taxes in the name of such Loan
Party

 50

and may pay
such Other Taxes and seek separate reimbursement of such Other Taxes hereunder
as a Secured Obligation.

(c)           Each Loan Party
shall, jointly and severally, indemnify each Lender, each Issuer and the
Administrative Agent for the full amount of Taxes and Other Taxes (including
any Taxes and Other Taxes imposed by any jurisdiction on amounts payable under
this Section 2.16) paid by such Lender,
such Issuer or the Administrative Agent (as the case may be) and any liability
(including for penalties, interest and expenses) arising therefrom or with
respect thereto, whether or not such Taxes or Other Taxes were correctly or
legally asserted.  This indemnification
shall be made within 30 days from the date such Lender, such Issuer or the
Administrative Agent (as the case may be) makes written demand therefor.

(d)           Within 30 days after
the date of any payment of Taxes or Other Taxes by any Loan Party, the Borrower
shall furnish to the Administrative Agent, at its address referred to in Section 11.8 (Notices, Etc.), the original or a
certified copy of a receipt evidencing payment thereof.

(e)           Without prejudice to
the survival of any other agreement of any Loan Party hereunder or under the
Guaranty, the agreements and obligations of such Loan Party contained in this Section 2.16 shall survive the payment in full of the
Obligations.

(f)            Each Non-U.S.
Lender that is entitled to an exemption from U.S. withholding tax, or that is
subject to such tax at a reduced rate under an applicable tax treaty, shall
(v) on or prior to the Closing Date in the case of each Non-U.S. Lender
that is a signatory hereto, (w) on or prior to the date of the Assignment
and Acceptance pursuant to which such Non-U.S. Lender becomes a Lender, on or
prior to the date a successor Issuer becomes an Issuer or on or prior to the
date a successor Administrative Agent becomes the Administrative Agent,
(x) on or prior to the date on which any such form or certification
expires or becomes obsolete, (y) after the occurrence of any event requiring
a change in the most recent form or certification previously delivered by it to
the Borrower and the Administrative Agent, and (z) from time to time
thereafter if requested by the Borrower or the Administrative Agent, provide
the Administrative Agent and the Borrower with two completed originals of each
of the following, as applicable:

(i)            (A) Form
W-8ECI (claiming exemption from U.S. withholding tax because the income is
effectively connected with a U.S. trade or business) or any successor form,
(B) Form W-8BEN (claiming exemption from, or a reduction of, U.S.
withholding tax under an income tax treaty) or any successor form, (C) in
the case of a Non-U.S. Lender claiming exemption under Sections 871(h) or
881(c) of the Code, a Form W-8BEN (claiming exemption from U.S. withholding tax
under the portfolio interest exemption) or any successor form or (D) any
other applicable form, certificate or document prescribed by the IRS certifying
as to such Non-U.S. Lender’s entitlement to such exemption from U.S.
withholding tax or reduced rate with respect to all payments to be made to such
Non-U.S. Lender under the Loan Documents. 
Unless the Borrower and the Administrative Agent have received forms or
other documents satisfactory to them indicating that payments under any Loan
Document to or for a Non-U.S. Lender are not subject to U.S. withholding tax or
are subject to such tax at a rate reduced by an applicable tax treaty, the Loan
Parties and the Administrative Agent shall withhold amounts required to be
withheld by applicable Requirements of Law from such payments at the applicable
statutory rate.

 51
 

(ii)           Each
U.S. Lender shall (v) on or prior to the Closing Date in the case of each
U.S. Lender that is a signatory hereto, (w) on the date of the Assignment
and Acceptance pursuant to which such U.S. Lender becomes a Lender, on or prior
to the date a successor Issuer becomes an Issuer or on or prior to the date a
successor Administrative Agent becomes the Administrative Agent hereunder,
(x) on or prior to the date on which any such form or certification
expires or becomes obsolete, (y) after the occurrence of any event
requiring a change in the most recent form or certification previously
delivered by it to the Borrower and the Administrative Agent and (z) from
time to time if requested by the Borrower or the Administrative Agent, provide
the Administrative Agent and the Borrower with two completed originals of Form
W-9 (certifying that such U.S. Lender is entitled to an exemption from U.S.
backup withholding tax) or any successor form. 
Solely for purposes of this Section 2.16(f),
a U.S. Lender shall not include a Lender, an Issuer or an Administrative Agent
that may be treated as an exempt recipient based on the indicators described in
Treasury Regulation section 1.6049-4(c)(1)(ii).

(g)           Any Revolving Credit
Lender claiming any additional amounts payable pursuant to this Section 2.16 shall use its reasonable efforts
(consistent with its internal policies and Requirements of Law) to change the
jurisdiction of its Applicable Lending Office if the making of such a change
would avoid the need for, or reduce the amount of, any such additional amounts
that would be payable or may thereafter accrue and would not, in the sole
determination of such Revolving Credit Lender, be otherwise disadvantageous to
such Revolving Credit Lender.

Section 2.17         Substitution of Lenders

(a)           In the event that
(i) any Revolving Credit Lender makes a claim under Section 2.14(c)
(Increased Costs) or 2.15 (Capital Adequacy),
(ii) it becomes illegal for any Revolving Credit Lender to continue to
fund or make any Eurodollar Rate Loan and such Revolving Credit Lender notifies
the Borrower pursuant to Section 2.14(d)
(Illegality), (iii) any Loan Party is required to make any
payment pursuant to Section 2.16 (Taxes)
that is attributable to a particular Revolving Credit Lender or (iv) any
Revolving Credit Lender becomes a Non-Funding Lender, (any such Lender, an “Affected Lender”), the Borrower may substitute any Lender
and, if reasonably acceptable to the Administrative Agent, any other Eligible
Assignee (a “Substitute Institution”) for such
Affected Lender hereunder, after delivery of a written notice (a “Substitution Notice”) by the Borrower to the Administrative
Agent and the Affected Lender within a reasonable time (in any case not to
exceed 90 days) following the occurrence of any of the events described in clauses (i) through (iv) above that
the Borrower intends to make such substitution; provided,
however, that, if more than one Lender
claims increased costs, illegality or right to payment arising from the same
act or condition and such claims are received by the Borrower within 30 days of
each other, then the Borrower may substitute all, but not (except to the extent
the Borrower has already substituted one of such Affected Lenders before the
Borrower’s receipt of the other Affected Lenders’ claim) less than all, Lenders
making such claims.

(b)           If the Substitution
Notice was properly issued under this Section 2.17,
the Affected Lender shall sell, and the Substitute Institution shall purchase,
all rights and claims of such Affected Lender under the Loan Documents, and the
Substitute Institution shall assume, and the Affected Lender shall be relieved
of, the Affected Lender’s Revolving Credit Commitments and all other prior
unperformed obligations of the Affected Lender under the Loan Documents (other
than in respect of any damages (which, pursuant to Section 11.5
(Limitation of Liability), do not include exemplary or punitive
damages, to the extent permitted by applicable 

 52
 

law) in
respect of any such unperformed obligations). 
Such purchase and sale (and the corresponding assignment of all rights
and claims hereunder) shall be recorded in the Register maintained by the
Administrative Agent and shall be effective on (and not earlier than) the later
of (i) the receipt by the Affected Lender of its Ratable Portion of the
Revolving Credit Outstandings, together with any other Obligations owing to it,
(ii) the receipt by the Administrative Agent of an agreement in form and substance
satisfactory to it and the Borrower whereby the Substitute Institution shall
agree to be bound by the terms hereof and (iii) the payment in full to the
Affected Lender in cash of all fees, unreimbursed costs and expenses and
indemnities accrued and unpaid through such effective date.  Upon the effectiveness of such sale, purchase
and assumption, the Substitute Institution shall become a “Lender”
hereunder for all purposes of this Agreement having a Revolving Credit
Commitment in the amount of such Affected Lender’s Revolving Credit Commitment
assumed by it and such Revolving Credit Commitment of the Affected Lender shall
be terminated; provided, however,
that all indemnities under the Loan Documents shall continue in favor of such
Affected Lender.

(c)           Each Revolving
Credit Lender agrees that, if it becomes an Affected Lender and its rights and
claims are assigned hereunder to a Substitute Institution pursuant to this Section 2.17, it shall execute and deliver to the
Administrative Agent an Assignment and Acceptance to evidence such assignment,
together with any Revolving Credit Note (if such Loans are evidenced by a
Revolving Credit Note) evidencing the Loans subject to such Assignment and
Acceptance; provided, however,
that the failure of any Affected Lender to execute an Assignment and Acceptance
shall not render such assignment invalid.

Section 2.18         Incremental Facility

(a)           The Borrower may
from time to time after the Closing Date request one or more increases in the
Revolving Credit Commitments (each, a “Revolving Credit
Commitment Increase”); provided, however, that (i) the aggregate amount of all Revolving
Credit Commitment Increases shall not exceed $200,000,000, (ii) no Revolving
Credit Commitment Increases shall be requested later than six months prior to
the Scheduled Termination Date and (iii) each Revolving Credit Commitment
Increase shall be in an amount not less than $25,000,000.  Nothing in this Agreement shall be construed
to obligate the Administrative Agent, any Arranger or any Lender to negotiate
for, solicit, provide or commit to provide any Revolving Credit Commitment
Increase.  Following the receipt by the
Administrative Agent of the Borrower’s request to obtain a Revolving Credit
Commitment Increase, the Administrative Agent shall promptly notify each Lender
of such proposed Revolving Credit Commitment Increase and of the proposed terms
and conditions therefor as provided in the Borrower’s notice with respect
thereto.  Each such Lender (and each of
their Affiliates and Approved Funds) may, in its sole discretion, commit to
participate in such Revolving Credit Commitment Increases by forwarding its
commitment therefor to the Administrative Agent in form and substance
satisfactory to the Administrative Agent. 
The Administrative Agent and the Borrower shall allocate the commitment
under such Revolving Credit Commitment Increase among the Lenders and other
Eligible Assignees from which the Administrative Agent has received written
commitments with respect thereto.  Each
Revolving Credit Commitment Increase shall become effective on a date agreed by
the Borrower and the Administrative Agent (each, an “Incremental
Credit Extension Date”), which shall be in any case on or after the
date of satisfaction of the conditions precedent set forth in Section 3.4 (Conditions Precedent to Each Incremental Credit Extension
Date).  The Administrative
Agent shall notify the Lenders and the Borrower, on or before 11:00 a.m., New
York City time, on the Business Day following an Incremental Credit Extension Date
of the effectiveness of a Revolving 

 53
 

Credit Commitment Increase and
shall record in the Register all applicable additional information in respect
of such Revolving Credit Commitment Increase.

(b) (i) The commitments under each Revolving Credit Commitment Increase
shall be deemed for all purposes part of the Revolving Credit Commitments, (ii)
each Lender or Eligible Assignee participating in such Revolving Credit
Commitment Increase shall become a Revolving Credit Lender with respect to the
Revolving Credit Commitments and all matters relating thereto and (iii) the
commitments under each Revolving Credit Commitment Increase shall have the same
terms and conditions as the Revolving Credit Commitments.  On the Incremental Credit Extension Date for
any Revolving Credit Commitment Increase, each Lender or Eligible Assignee
participating in such Revolving Credit Commitment Increase shall purchase and
assume from each existing Revolving Credit Lender having Revolving Loans and
participations in Letters of Credit and Swing Loans outstanding on such
Incremental Credit Extension Date, without recourse or warranty, an undivided
interest and participation, to the extent of such Lender’s Ratable Portion of
the new Revolving Credit Commitments (after giving effect to such Revolving
Credit Commitment Increase), in the aggregate outstanding Revolving Loans and
participations in Letters of Credit and Swing Loans, so as to ensure that, on
the Incremental Credit Extension Date after giving effect to such Revolving
Credit Commitment Increase, each Revolving Lender is owed only its Ratable
Portion of the Revolving Loans and participations in Letters of Credit and
Swing Loans outstanding on such Incremental Credit Extension Date.

Article III

Conditions to Loans and Letters of Credit

Section 3.1            Conditions Precedent to Initial
Loans and Letters of Credit

The obligation of each Revolving Credit Lender to make
the Loans requested to be made by it on the Closing Date and the obligation of
each Issuer to Issue Letters of Credit on the Closing Date is subject to the
satisfaction or due waiver in accordance with Section 11.1
(Amendments, Waivers, Etc.) of each of the following conditions
precedent on or before November 16, 2006:

(a)           Certain
Documents.  The Administrative
Agent shall have received on or prior to the Closing Date (and, to the extent
any Borrowing of any Eurodollar Rate Loans is requested to be made on the
Closing Date, in respect of the Notice of Borrowing for such Eurodollar Rate
Loans, at least three Business Days prior to the Closing Date) each of the
following, each dated the Closing Date unless otherwise indicated or agreed to
by the Administrative Agent, in form and substance satisfactory to the
Administrative Agent and in sufficient copies for each Lender:

(i)            this
Agreement, duly executed and delivered by the Borrower and, for the account of
each Lender requesting the same, a Revolving Credit Note of the Borrower
conforming to the requirements set forth herein;

(ii)           the
Guaranty, duly executed by each Guarantor;

 54
 

(iii)          the
Security Agreement, duly executed by the Borrower and each Guarantor, together
with each of the following:

(A)          evidence
satisfactory to the Administrative Agent that, upon the filing and recording of
instruments delivered at the Closing, the Administrative Agent (for the benefit
of the Secured Parties) shall have a valid and perfected first priority
security interest in the Collateral, including (x) such documents duly
executed by each Loan Party as the Administrative Agent may request with respect
to the perfection of its security interests in the Collateral (including
financing statements under the UCC and other applicable documents under the
laws of any jurisdiction with respect to the perfection of Liens created by the
Security Agreement) and (y) copies of UCC search reports as of a recent
date listing all effective financing statements that name any Loan Party as
debtor, together with copies of such financing statements, none of which shall
cover the Collateral, except for those that shall be terminated on the Closing
Date or are otherwise permitted hereunder; and

(B)           all
Deposit Account Control Agreements, duly executed by the corresponding Deposit
Account Bank and Loan Party, that, in the reasonable judgment of the
Administrative Agent, shall be required for the Loan Parties to comply with Section 7.11 (Cash Management);

(iv)          a
favorable opinion of (A) Gibson, Dunn & Crutcher LLP counsel to the
Loan Parties, in substantially the form of Exhibit G (Form of
Opinion of Counsel for the Loan Parties), (B) (1) counsel to
the Loan Parties in Alabama, Florida, Georgia, Missouri, North Carolina, South
Carolina and Tennessee and (2) in-house counsel to the Loan Parties in
Louisiana, Pennsylvania and Texas, in each case addressed to the Administrative
Agent and the Lenders and addressing such other matters as any Lender through
the Administrative Agent may reasonably request and (C) counsel to the
Administrative Agent as to the enforceability of this Agreement and the other
Loan Documents to be executed on the Closing Date;

(v)           a
copy of the articles or certificate of incorporation (or equivalent Constituent
Document) of each Loan Party, certified as of a recent date by the Secretary of
State of the state of organization of such Loan Party, together with certificates
of such official attesting to the good standing of each such Loan Party;

(vi)          a
certificate of the Secretary or an Assistant Secretary of each Loan Party
certifying (A) the names and true signatures of each officer of such Loan
Party that has been authorized to execute and deliver any Loan Document or
other document required hereunder to be executed and delivered by or on behalf
of such Loan Party, (B) the by-laws (or equivalent Constituent Document)
of such Loan Party as in effect on the date of such certification, (C) the
resolutions of such Loan Party’s Board of Directors (or equivalent governing
body) approving and authorizing the execution, delivery and performance of this
Agreement and the other Loan Documents to which it is a party and (D) that
there have been no changes in the certificate of incorporation (or equivalent
Constituent Document) of such Loan Party from the certificate of incorporation
(or equivalent Constituent Document) delivered pursuant to clause (v)
above;

 55
 

(vii)         a
certificate of a Responsible Officer of the Borrower, stating that the Borrower
and the Loan Parties, taken as a whole, are Solvent after giving effect to the
initial Loans and Letters of Credit, the application of the proceeds thereof in
accordance with Section 7.9 (Application of Proceeds)
and the payment of all estimated legal, accounting and other fees related
hereto and thereto;

(viii)        a
certificate of a Responsible Officer to the effect that (A) the condition
set forth in Section 3.2(b) (Conditions Precedent to
Each Loan and Letter of Credit) has been satisfied and (B) no
action, suit, investigation, litigation or proceeding not listed on Schedule 4.7 (Litigation) has been commenced against
any Loan Party or any of its Subsidiaries that (x) could have a Material Adverse
Effect or (y) restrains, prevents or imposes or can reasonably be expected to
impose materially adverse conditions upon the Facility or the transactions
contemplated hereby;

(ix)           evidence
satisfactory to the Administrative Agent that the insurance policies required
by Section 7.5 (Maintenance of Insurance)
and any Collateral Document are in full force and effect, together with, if
applicable, endorsements naming the Administrative Agent, on behalf of the
Secured Parties, as an additional insured or loss payee under all insurance
policies required by Section 7.5
(Maintenance of Insurance); and

(x)            such
other certificates, documents, agreements and information respecting any Loan
Party as any Lender through the Administrative Agent may reasonably request.

(b)           Cash
Management. The Administrative Agent shall have received evidence
that, as of the Closing Date, the procedures with respect to cash management
required by the Collateral Documents have been established and are currently
being maintained by each Loan Party, together with copies of all executed
Deposit Account Control Agreements executed by such Loan Party in connection
therewith.

(c)           Fee and
Expenses Paid.  There shall
have been paid to the Administrative Agent, for the account of the Administrative
Agent and the Lenders, as applicable, all fees and expenses (including
reasonable fees and expenses of counsel) due and payable on or before the
Closing Date (including all such fees described in the Fee Letter).

(d)           Consents, Etc.  Each
Group Member shall have received all consents and authorizations required
pursuant to any material Contractual Obligation with any other Person and shall
have obtained all Permits of, and effected all notices to and filings with, any
Governmental Authority, in each case, as may be necessary to allow each Group
Member lawfully (i) to execute, deliver and perform, in all material
respects, their respective obligations hereunder and under the Loan Documents
and the Related Documents to which each of them, respectively, is, or shall be,
a party and each other agreement or instrument to be executed and delivered by
each of them, respectively, pursuant thereto or in connection therewith and
(ii) to create and perfect the Liens on the Collateral to be owned by each
of them in the manner and for the purpose contemplated by the Loan Documents.

(e)           Financial
Statements and Forecasts.  The
Lenders shall have received (i) audited financial statements of the Borrower
and its Subsidiaries for the Fiscal Year ending December 31, 2005 by KPMG LLP,
(ii) interim unaudited quarterly financial statements of the 

 56
 

Borrower and
its Subsidiaries through the fiscal quarter ending March 31, 2006 (or, if
later, the most recent fiscal quarter for which the Borrower’s quarterly report
to stockholders on form 10-Q has been filed with the SEC under the Securities
Exchange Act of 1934, as amended) and (iii) the Borrower’s business plan (the “Business Plan”) which shall include annual financial
forecasts for the year in which the Closing Date occurs through the year of the
Revolving Credit Termination Date, prepared by the Borrower’s management, in
each case, satisfactory to the Administrative Agent.

(f)            Existing Letters of Credit Facility.  The Existing Letters of Credit Facility and
all Liens and guarantees granted thereunder or with respect thereto shall have
been terminated in form and substance satisfactory to the Administrative Agent;
provided, that the Existing Letters of
Credit shall be subject to the provisions of Section 2.4(k)
(Letters of Credit).

Section 3.2            Conditions Precedent to Each Loan
and Letter of Credit

The obligation of each Revolving Credit Lender on any
date (including the Closing Date) to make any Loan and of each Issuer on any
date (including the Closing Date) to Issue any Letter of Credit is subject to
the satisfaction of each of the following conditions precedent:

(a)           Request for
Borrowing or Issuance of Letter of Credit.  With respect to any Loan, the Administrative
Agent shall have received a duly executed Notice of Borrowing (or, in the case
of Swing Loans, a duly executed Swing Loan Request), and, with respect to any
Letter of Credit, the Administrative Agent and the Issuer shall have received a
duly executed Letter of Credit Request.

(b)           Representations
and Warranties; No Defaults. 
The following statements shall be true on the date of such Loan or
Issuance, both before and after giving effect thereto and, in the case of any
Loan, to the application of the proceeds thereof:

(i)            the
representations and warranties set forth in Article IV
(Representations and Warranties) and in the other Loan Documents
shall be true and correct on and as of the Closing Date and shall be true and
correct in all material respects on and as of any such date after the Closing
Date with the same effect as though made on and as of such date, except to the
extent such representations and warranties expressly relate to an earlier date,
in which case such representations and warranties shall have been true and
correct in all material respects as of such earlier date; and

(ii)           no
Default or Event of Default shall have occurred and be continuing.

(c)           Borrowing
Base.  The Borrower shall have
delivered the Borrowing Base Certificate required to be delivered by Section 6.9(a) (Borrowing Base Determination).  After giving effect to the Loans or Letters
of Credit requested to be made or Issued on any such date and the use of
proceeds thereof, the Revolving Credit Outstandings shall not exceed the
Maximum Credit at such time.

(d)           No Legal
Impediments.  The making of
the Loans or the Issuance of such Letter of Credit on such date does not
violate any Requirement of Law on the date of or 

 57
 

immediately
following such Loan or Issuance of such Letter of Credit and is not enjoined,
temporarily, preliminarily or permanently.

Each submission by the Borrower to the Administrative
Agent of a Notice of Borrowing or a Swing Loan Request and the acceptance by
the Borrower of the proceeds of each Loan requested therein, and each
submission by the Borrower to an Issuer of a Letter of Credit Request, and the
Issuance of each Letter of Credit requested therein, shall be deemed to
constitute a representation and warranty by the Borrower as to the matters
specified in clause (b) above on the date
of the making of such Loan or the Issuance of such Letter of Credit.

Section 3.3            Determinations of Initial Borrowing
Conditions

For purposes of determining compliance with the
conditions specified in Section 3.1
(Conditions Precedent to Initial Loans and Letters of Credit), each
Revolving Credit Lender shall be deemed to have consented to, approved,
accepted or be satisfied with, each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to
the Revolving Credit Lenders unless an officer of the Administrative Agent
responsible for the transactions contemplated by the Loan Documents shall have
received notice from such Revolving Credit Lender prior to the initial
Borrowing, borrowing of Swing Loans or Issuance or deemed Issuance hereunder
specifying its objection thereto and such Revolving Credit Lender shall not
have made available to the Administrative Agent such Revolving Credit Lender’s
Ratable Portion of such Borrowing or Swing Loans.

Section 3.4            Conditions Precedent to Each
Incremental Credit Extension Date

Each Revolving Credit Commitment Increase shall not
become effective prior to the satisfaction of all of the following conditions
precedent:

(a)           The Administrative
Agent shall have received on or prior to the Incremental Credit Extension Date
each of the following, each dated as of such Incremental Credit Extension Date
unless otherwise indicated or agreed to by the Administrative Agent and each in
form and substance satisfactory to the Administrative Agent:

(i)            written
commitments duly executed by existing Lenders (or their Affiliates or Approved
Funds) or Eligible Assignees in an aggregate amount equal to the amount of the
proposed Revolving Credit Commitment Increase (as agreed between the Borrower
and the Administrative Agent but in any case not to exceed, in the aggregate,
the maximum amount set forth in Section 2.18 (Incremental
Facility)) and, in the case of each such Eligible Assignee that is
not an existing Lender, an assumption agreement in form and substance
satisfactory to the Administrative Agent and duly executed by the Borrower, the
Administrative Agent and such Eligible Assignee;

(ii)           an
amendment to this Agreement (including to Schedule I), effective as of such
Incremental Credit Extension Date and executed by the Borrower and the Administrative
Agent, to the extent necessary to implement terms and conditions of such
Revolving Credit Commitment Increase as agreed by the Borrower and the
Administrative Agent;

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(iii)          certified
copies of resolutions of the Board of Directors of the Borrower and each
Guarantor approving the consummation of such Revolving Credit Commitment
Increase and the execution, delivery and performance of the corresponding
amendments to this Agreement and the other documents to be executed in
connection therewith;

(iv)          a
favorable opinion of counsel for the Borrower and each Guarantor, addressed to
the Administrative Agent, the Lenders and the Issuers and in form and substance
and from counsel reasonably satisfactory to the Administrative Agent; and

(v)           such
other documents as the Administrative Agent may reasonably request or as any
Lender participating in such Revolving Credit Commitment Increase may require
as a condition to its commitment therein.

(b)           The Administrative
Agent shall have received a certificate from a Responsible Officer of the
Borrower, certifying that on the Incremental Credit Extension Date and
immediately after giving effect to the Revolving Credit Commitment Increase the
Borrower shall be in compliance with the financial covenants contained in Article V (Financial Covenants), in each case
determined on a pro forma basis after giving effect to such Revolving Credit
Commitment Increase, as of (i) the Incremental Credit Extension Date and (ii)
the last day of the most recently ended fiscal quarter of the Borrower for
which financial statements have been delivered to the Administrative Agent
pursuant to Sections 5.1(a) or (b),
as applicable, in each case in form and substance and with supporting
documentation reasonably satisfactory to the Administrative Agent.

(c)           There shall have
been paid to the Administrative Agent, for the account of itself and the
Lenders, as applicable, all fees and expenses (including reasonable fees and
expenses of counsel) due and payable on or before such Incremental Credit Extension
Date.

(d)           The conditions
precedent set forth in Section 3.2
shall have been satisfied both before and after giving effect to such Revolving
Credit Commitment Increase.

Such Revolving Credit Commitment Increase shall have
been made on the terms and conditions set forth in Section 2.18
(Incremental Facility).

Article IV

Representations and Warranties

To induce the Lenders, the Issuers and the
Administrative Agent to enter into this Agreement, the Borrower represents and
warrants each of the following to the Lenders, the Issuers and the
Administrative Agent, on and as of the Closing Date and after giving effect to
the making of the Loans and the other financial accommodations on the Closing
Date and on and as of each date as required by Section 3.2(b)(i)
(Conditions Precedent to Each Loan and Letter of Credit):

 59
 

Section 4.1            Corporate Existence; Compliance with Law

Each Group Member (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, (b) is duly qualified to do business as a foreign entity and
in good standing under the laws of each jurisdiction where such qualification
is necessary, except where the failure to be so qualified or in good standing
would not, in the aggregate, have a Material Adverse Effect, (c) has all
requisite power and authority and the legal right to own, pledge, mortgage and
operate its properties, to lease the property it operates under lease and to
conduct its business as now or currently proposed to be conducted, (d) is
in compliance with its Constituent Documents, (e) is in compliance with
all applicable Requirements of Law (including all Health Care Laws) except
where the failure to be in compliance would not, in the aggregate, have a
Material Adverse Effect and (f) has all necessary Permits from or by, has
made all necessary filings with, and has given all necessary notices to, each
Governmental Authority having jurisdiction, to the extent required for such
ownership, operation and conduct, except for Permits or filings that can be
obtained or made by the taking of ministerial action to secure the grant or
transfer thereof or the failure to obtain or make would not, in the aggregate,
have a Material Adverse Effect.

Section 4.2            Corporate Power; Authorization;
Enforceable Obligations

(a)           The execution,
delivery and performance by each Loan Party of the Loan Documents to which it
is a party and the consummation of the transactions contemplated thereby:

(i)            are
within such Loan Party’s corporate, limited liability company, partnership or
other powers;

(ii)           have
been or, at the time of delivery thereof pursuant to Article III
(Conditions to Loans and Letters of Credit) will have been duly
authorized by all necessary action, including the consent of shareholders,
partners and members where required;

(iii)          do
not and will not (A) contravene or violate such Loan Party’s or any of its
Subsidiaries’ respective Constituent Documents, (B) violate any other
Requirement of Law applicable to such Loan Party (including Regulations T, U and
X of the Federal Reserve Board), or any order or decree of any Governmental
Authority or arbitrator applicable to such Loan Party, (C) conflict with
or result in the breach of, or constitute a default under, or result in or
permit the termination or acceleration of, any Related Document or any other
material Contractual Obligation of such Loan Party or any of its Subsidiaries
or (D) result in the creation or imposition of any Lien upon any property
of such Loan Party or any of its Subsidiaries, other than those in favor of the
Secured Parties pursuant to the Collateral Documents; and

(iv)          do
not require the consent of, authorization by, approval of, notice to, or filing
or registration with, any Governmental Authority or any other Person, other
than those listed on Schedule 4.2
(Consents) and that have been or will be, prior to the Closing Date,
obtained or made, copies of which have been or will be delivered to the
Administrative Agent pursuant to Section 3.1
(Conditions Precedent to Initial Loans and Letters of Credit), and
each of which on the Closing Date will be in full force and effect

 60

and, with
respect to the Collateral, filings required to perfect the Liens created by the
Collateral Documents.

(b)           This Agreement has
been, and each of the other Loan Documents will have been upon delivery thereof
pursuant to the terms of this Agreement, duly executed and delivered by each
Loan Party party thereto.  This Agreement
is, and the other Loan Documents will be, when delivered hereunder, the legal,
valid and binding obligation of each Loan Party party thereto, enforceable
against such Loan Party in accordance with its terms.

Section 4.3            Subsidiaries; Borrower Information

(a)           Set forth on Schedule 4.3(a) (Ownership of Subsidiaries) is a
complete and accurate list showing, as of the Closing Date, all Subsidiaries of
the Borrower other than the Excluded Subsidiaries and, as to each such
Subsidiary, the jurisdiction of its organization.  No Stock of any Guarantor is subject to any
outstanding option, warrant, right of conversion or purchase of any similar
right.  All of the outstanding Stock of
each Guarantor owned (directly or indirectly) by the Borrower has been validly
issued, is fully paid and non-assessable (to the extent applicable) and is
owned by the Borrower or a Guarantor, free and clear of all Liens (other than
Liens permitted pursuant to Section 8.2 (Liens, Etc.)),
options, warrants, rights of conversion or purchase or any similar rights.  The Borrower does not own or hold, directly
or indirectly, any Stock of any Person other than such Subsidiaries and
Investments permitted by Section 8.3 (Investments).

(b)           Schedule 4.3(b)
(Borrower Information) sets forth as of the Closing Date the name,
address of principal place of business and tax identification number of the
Borrower.

Section 4.4            Financial Statements

(a)           The Consolidated
balance sheet of the Borrower and its Subsidiaries as at December 31, 2005, and
the related Consolidated statements of income and cash flows of the Borrower
and its Subsidiaries for the fiscal year then ended, certified by KPMG, LLP,
and the Consolidated balance sheets of the Borrower and its Subsidiaries as at
June 30, 2006, and the related Consolidated statements of income and cash flows
of the Borrower and its Subsidiaries for the 6 months then ended, copies of
which have been furnished to each Lender, fairly present, subject, in the case
of said balance sheets as at June 30, 2006, and said statements of income and
cash flows for the 6 months then ended, to the absence of footnote disclosure
and normal recurring year-end audit adjustments, the Consolidated financial condition
of the Borrower and its Subsidiaries as at such dates and the Consolidated
results of the operations of the Borrower and its Subsidiaries for the period
ended on such dates, all in conformity with GAAP.

(b)           The Business Plan is
based upon estimates and assumptions stated therein, all of which the Borrower
believed to be reasonable and fair in light of current conditions and facts
known to the Borrower as of the date the Business Plan was submitted to the
Administrative Agent and, as of the Closing Date, reflect the Borrower’s good
faith and reasonable estimates of the future financial performance of the
Borrower and its Subsidiaries and of the other information projected therein
for the periods set forth therein.

 61
 

Section 4.5            Material Adverse Change

Since December 31, 2005, there has been no Material
Adverse Change and there have been no events or developments that, in the
aggregate, have had a Material Adverse Effect.

Section 4.6            Solvency

Both before and after giving effect to (a) the
Loans and Letter of Credit Obligations to be made or extended on the Closing
Date or such other date as Loans and Letter of Credit Obligations requested
hereunder are made or extended, (b) the disbursement of the proceeds of
such Loans pursuant to the instructions of the Borrower and (c) the
payment and accrual of all transaction costs in connection with the foregoing,
the Loan Parties, taken as a whole, are Solvent.

Section 4.7            Litigation

Except as set forth on Schedule 4.7 (Litigation), there are no pending or, to
the knowledge of any Group Member, threatened actions, investigations,
litigations, or proceedings affecting the Borrower or any of its Subsidiaries
before any court, Governmental Authority or arbitrator other than those that,
in the aggregate, (x) could not have a Material Adverse Effect or (y) do not
restrain, prevent or impose or can reasonably be expected to impose materially
adverse conditions upon the Facility or the transactions contemplated
hereby.  The performance of any action by
any Loan Party required or contemplated by any Loan Document or any Related
Document is not restrained or enjoined (either temporarily, preliminarily or
permanently).

Section 4.8            Taxes

(a)           All federal, and
other material state, local and foreign income and franchise and other material
tax returns, reports and statements (collectively, the “Tax Returns”)
required to be filed by the Borrower or any of its Tax Affiliates have been
filed with the appropriate Governmental Authorities in all jurisdictions in
which such Tax Returns are required to be filed, all such Tax Returns are true
and correct in all material respects, and all taxes, charges and other
impositions reflected therein or otherwise due and payable have been paid
except where contested in good faith and by appropriate proceedings if adequate
reserves therefor have been established on the books of the Borrower or such
Tax Affiliate in conformity with GAAP. 
Except as disclosed on Schedule 4.8,
no Tax Return is under audit or examination by any Governmental Authority and
no notice of such an audit or examination or any assertion of any claim for
Taxes has been given or made by any Governmental Authority.  The Borrower and each of its Tax Affiliates
have complied in all material respects with the tax, social security and unemployment
withholding provisions of applicable Requirements of Law and such withholdings
have been timely paid to the respective Governmental Authorities.

(b)           Except as disclosed
on Schedule 4.8, none of the Borrower or
any of its Tax Affiliates has (i) executed or filed with the IRS or any
other Governmental Authority any agreement or other document extending, or
having the effect of extending, the period for the filing of any Tax Return or
the assessment or collection of any charges, (ii) incurred any obligation
under any tax sharing agreement or arrangement other than those of which the
Administrative Agent has received a copy prior to the date hereof or
(iii) been a member of an affiliated, combined or unitary group other than
the group of which the Borrower (or its Tax Affiliate) is the common parent.

 62
 

Section 4.9            Full Disclosure

The information prepared or furnished by or on behalf of any Group
Member in connection with this Agreement or the consummation of the
transactions contemplated hereunder and thereunder taken as a whole, does not
contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements contained therein or herein not
misleading in light of the circumstances under which such statements were made.

Section 4.10         Margin Regulations

The Borrower is not engaged in the business of
extending credit for the purpose of purchasing or carrying margin stock (within
the meaning of Regulation U of the Federal Reserve Board), and no proceeds of
any Loan will be used to purchase or carry any such margin stock or to extend
credit to others for the purpose of purchasing or carrying any such margin
stock in contravention of Regulation T, U or X of the Federal Reserve Board.

Section 4.11         No Burdensome Restrictions; No Defaults

(a)           No Group Member
(i) is a party to any Contractual Obligation the compliance with one or
more of which would have, in the aggregate, a Material Adverse Effect or the
performance of which by any thereof, either unconditionally or upon the happening
of an event, would result in the creation of a Lien (other than a Lien
permitted under Section 8.2 (Liens, Etc.))on the assets of any thereof or (ii) is subject to one
or more charter or corporate restrictions that would, in the aggregate, have a
Material Adverse Effect.

(b)           No Group Member is
in default under or with respect to any Contractual Obligation owed by it and,
to the knowledge of the Borrower, no other party is in default under or with
respect to any Contractual Obligation owed to any Loan Party or to any
Subsidiary of any Loan Party, other than, in either case, those defaults that,
in the aggregate, would not have a Material Adverse Effect.

(c)           No Default or Event
of Default has occurred and is continuing.

(d)           To the best
knowledge of the Borrower, there are no Requirements of Law applicable to any
Loan Party or any Subsidiary of any Loan Party the compliance with which by
such Loan Party or such Subsidiary, as the case may be, would, in the
aggregate, have a Material Adverse Effect.

Section 4.12         Investment Company Act; Public Utility
Holding Company Act

No Group Member is (a) an “investment
company” or an “affiliated person”
of, or “promoter” or “principal
underwriter” for, an “investment company,”
as such terms are defined in the Investment Company Act of 1940, as amended or
(b) a “holding company” or an “affiliate” of a “holding company”
or a “subsidiary company” of a “holding company”, as each such term is defined and used in
the Public Utility Holding Company Act of 2005, enacted as part of the Energy
Policy Act of 2005, Pub. L. No. 109-58 as codified at §§ 1261 et seq., and the regulations adopted thereunder, as amended.

 63
 

Section 4.13         Compliance with Health Care Laws

(a)           Except as set forth
on Schedule 4.13(a), each of the Borrower
and its Subsidiaries has not received notice and has no knowledge that any
Governmental Authority or accreditation organization is considering limiting,
suspending, terminating, or revoking any such Permit which limitation,
suspension, termination or revocation could have a Material Adverse
Effect.  All such Permits are valid and
in full force and effect, except as could not have a Material Adverse Effect.

(b)           To the extent it
participates in a particular Program, each of the Borrower and its Subsidiaries
meets all of the requirements of participation and payment of Medicare,
Medicaid, any other state or federal government health care programs, and any
other public or private third party payor programs (each, a “Program”) and is a party to valid participation agreements
for payment by such Programs, except in each case as could not have a Material
Adverse Effect.  There is no
investigation, audit, claim review, or other action pending or, to the
knowledge of the Borrower, threatened which could result in a revocation,
suspension, termination, probation, material restriction, material limitation,
or non-renewal of any Program participation agreement or result in the Borrower’s
or any of its Subsidiaries’ exclusion from any Program, except as would not
have a Material Adverse Effect.  Schedule 4.13(b) sets forth, as of the Closing Date, an
accurate, complete and current list of (i) all Medicaid and other state and
federal government health care program participation agreements, or, in the
case of Medicare, each provider number, and (ii) the top twenty-five (25)
payors, by revenue, in each case, of the Borrower and its Subsidiaries, on a
consolidated basis.

(c)           Except as set forth
on Schedule 4.13(c), as of the Closing
Date, none of the Borrower, any of its Subsidiaries, or their respective
officers and directors has been or is currently excluded from participation in
government health care programs pursuant to 42 U.S.C. § 1320a-7 where such
exclusion would have a Material Adverse Effect.

(d)           Except as set forth
on Schedule 4.13(d), as of the Closing
Date, none of the Borrower or any of its Subsidiaries (i) is a party to a
corporate integrity agreement, (ii) has any reporting obligations pursuant to a
settlement agreement, plan of correction, or other remedial measure entered
into with any Governmental Authority, or (iii) has been served with or received
any search warrant, subpoena, civil investigative demand or contact letter from
any Governmental Agency related to its business operations, where, in the case
of clause (ii), the failure to comply with such reporting obligations, or, in
the case of clause (iii), the consequence of the receipt of such search
warrant, subpoena, demand or contact letter would have a Material Adverse
Effect.  The Borrower and each of its
Subsidiaries, as applicable, has complied with the terms and conditions of any
corporate integrity agreements, settlement agreements, plans of correction,
other remedial measures, search warrants, subpoenas, civil investigative
demands, or contract letters set forth on Schedule 4.13(d)
except where such exclusion would not result in a Material Adverse Effect.

Section 4.14         Use of Proceeds

The proceeds of the Loans and the Letters of Credit
are being used by the Borrower (and, to the extent distributed to them by the
Borrower, each other Loan Party) solely (a) for working capital and
general corporate purposes and (b) for the payment of transaction costs,
fees and expenses incurred in connection with this Agreement and the
transactions contemplated hereby.

 64
 

Section 4.15         Insurance

All policies of insurance of any kind or nature of the
Borrower or any of its Subsidiaries, including policies of life, fire, theft,
product liability, public liability, property damage, other casualty, employee
fidelity, workers’ compensation and employee health and welfare insurance, are
in full force and effect and are of a nature and provide such coverage as is
sufficient and as is customarily carried by businesses of the size and
character of such Person.  None of the
Borrower or any of its Subsidiaries has been refused insurance for any material
coverage for which it had applied or had any policy of insurance terminated
(other than at its request).

Section 4.16         Labor Matters

(a)           There are no
strikes, work stoppages, slowdowns or lockouts pending or threatened against or
involving any Group Member, other than those that, in the aggregate, would not
have a Material Adverse Effect.

(b)           There are no unfair
labor practices, grievances, complaints or arbitrations pending, or, to any
Group Member’s knowledge, threatened, against or involving any Group Member,
nor are there any arbitrations or grievances threatened involving any Group
Member, other than those that, in the aggregate, would not have a Material
Adverse Effect.

(c)           Except as set forth
on Schedule 4.16 (Labor Matters), as
of the Closing Date, there is no collective bargaining agreement covering any
employee of any Group Member.

Section 4.17         ERISA

(a)           Schedule 4.17
(List of Plans) separately identifies as of the Closing Date all
Title IV Plans, all Multiemployer Plans and all material Benefit Plans.

(b)           Each Benefit Plan,
and each trust thereunder, intended to qualify for tax exempt status under
Section 401 or 501 of the Code or other Requirements of Law so qualifies,
except where such failures, in the aggregate, would not have a Material Adverse
Effect.

(c)           Except for those
that would not, in the aggregate, have a Material Adverse Effect, (i) each
Benefit Plan is in compliance in all material respects with applicable
provisions of ERISA, the Code and other Requirements of Law, (ii) there are no
existing or pending (or, to the knowledge of any Group Member, threatened)
claims (other than routine claims for benefits in the normal course),
sanctions, actions, lawsuits or other proceedings or investigation involving
any Benefit Plan to which any Group Member incurs or otherwise has or could
have an obligation or any liability and (iii) no ERISA Event is reasonably
expected to occur.

(d)           On the Closing Date,
no ERISA Event has occurred in connection with which obligations and
liabilities (contingent or otherwise) remain outstanding.

(e)           Except to the extent
set forth on Schedule 4.17 (List of Plans),
no ERISA Affiliate would have any Withdrawal Liability as a result of a
complete withdrawal from any Multiemployer Plan on the date this representation
is made.

 65
 

Section 4.18         Environmental Matters

(a)           The operations of
each Group Member have been and are in compliance with all Environmental Laws,
including obtaining and complying with all required environmental, health and
safety Permits, other than non-compliances that, in the aggregate, would not
have a Material Adverse Effect.

(b)           No Group Member or
any Real Property currently or, to the knowledge of any Group Member,
previously owned, operated or leased by or for any Group Member is subject to
any pending or, to the knowledge of any Group Member, threatened, claim, order,
agreement, notice of violation, notice of potential liability or is the subject
of any pending or threatened proceeding or governmental investigation under or
pursuant to Environmental Laws other than those that, in the aggregate, would
not have a Material Adverse Effect.

(c)           Except as disclosed
on Schedule 4.18 (Environmental Matters),
as of the Closing Date, no Real Property owned, operated or leased by any Group
Member is a treatment, storage or disposal facility requiring a Permit under
the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., the regulations thereunder or any state analog.

(d)           There are no facts,
circumstances or conditions arising out of or relating to the operations or
ownership of the Borrower or of Real Property owned, operated or leased by any
Group Member that are not specifically included in the financial information
furnished to the Lenders other than those that, in the aggregate, would not
result in a Material Adverse Effect.

Section 4.19         Intellectual Property

Each Group Member owns or licenses or otherwise has
the right to use all licenses, permits, patents, patent applications,
trademarks, trademark applications, service marks, trade names, copyrights,
copyright applications, Internet domain names, franchises, authorizations and
other intellectual property rights that are necessary for the operations of its
respective businesses, without infringement upon or conflict with the rights of
any other Person with respect thereto, including all trade names associated
with any private label brands of any Group Member, that would result in a
Material Adverse Effect.  To the
knowledge of each Group Member, no license, permit, patent, patent application,
trademark, trademark application, service mark, trade name, copyright,
copyright application, Internet domain name, franchise, authorization, other
intellectual property right, slogan or other advertising device, product,
process, method, substance, part or component, or other material now employed,
or now contemplated to be employed, by any Group Member infringes upon or
conflicts with any rights owned by any other Person that would result in a
Material Adverse Effect, and no claim or litigation regarding any of the
foregoing is pending or threatened.

Article V

Financial Covenants

The Borrower agrees with the Lenders, the Issuers and
the Administrative Agent to each of the following as long as any Obligation or
any Revolving Credit Commitment remains outstanding and, in each case, unless
the Requisite Lenders otherwise consent in writing:

 66
 

Section 5.1            Minimum Fixed Charge Coverage Ratio

At any time when the Available Credit is less than or
equal to $100,000,000, the Borrower shall maintain a Fixed Charge Coverage
Ratio, as determined as of the last day of each Fiscal Quarter set forth below,
for the four Fiscal Quarters ending on the last day of such Fiscal Quarter, of
at least the minimum ratio set forth below opposite such Fiscal Quarter:

	
  Fiscal Quarter Ending

  	
   

  	
  Minimum Fixed Charge

  Coverage Ratio

  	
   

  
	
  March 31, 2007

  	
   

  	
  1.70
  to 1.00

  	
   

  
	
  June 30, 2007

  	
   

  	
  1.75
  to 1.00

  	
   

  
	
  September 30,
  2007

  	
   

  	
  1.75
  to 1.00

  	
   

  
	
  December 31,
  2007

  	
   

  	
  1.80
  to 1.00

  	
   

  
	
  March 31, 2008

  	
   

  	
  1.90
  to 1.00

  	
   

  
	
  June 30, 2008

  	
   

  	
  2.00
  to 1.00

  	
   

  
	
  September 30,
  2008

  	
   

  	
  2.00
  to 1.00

  	
   

  
	
  each Fiscal Quarter
  thereafter:

  	
   

  	
  2.10 to 1.00

  	
   

  

 

Section 5.2            Capital Expenditures

(a)           The
Borrower shall not (subject to Section 5.2(b)
below) make or incur, or permit to be made or incurred, Capital Expenditures
during each of the Fiscal Years set forth below to be, in the aggregate, in
excess of the maximum amount set forth below for such Fiscal Year:

	
  Fiscal Year Ending

  	
   

  	
  Maximum Capital

  Expenditures

  	
   

  
	
  December 31,
  2006

  	
   

  	
  $

  	
  800,000,000

  	
   

  
	
  December 31, 2007 and
  thereafter

  	
   

  	
  $

  	
  900,000,000

  	
   

  

 

provided, however,
that to the extent that actual Capital Expenditures for any such Fiscal Year
shall be less than the maximum amount set forth above for such Fiscal Year
(without giving effect to the carryover permitted by this proviso), 50% of the
difference between said stated maximum amount and such actual Capital
Expenditures shall, in addition, be available for Capital Expenditures in the
next succeeding Fiscal Year.

(b)           Notwithstanding anything in this Section 5.2, if prior to and after giving effect to each
Capital Expenditure, the Borrower satisfies the Excess Availability Condition
on a pro forma basis, the Borrower shall be
permitted to make such Capital Expenditures without being subject to the
foregoing limitations in Section 5.2(a) above.

Article VI

Reporting Covenants

The Borrower agrees with the Lenders, the Issuers and
the Administrative Agent to each of the following, as long as any Obligation or
any Revolving Credit Commitment remains outstanding and, in each case, unless
the Requisite Lenders otherwise consent in writing:

 67
 

Section 6.1            Financial Statements

The Borrower shall furnish to the Administrative Agent
(with sufficient copies for each of the Lenders) each of the following:

(a)           Quarterly
Reports.  Within 45 days after
the end of each of the first three Fiscal Quarters of each Fiscal Year,
financial information regarding the Borrower and its Subsidiaries consisting of
Consolidated unaudited balance sheets as of the close of such quarter and the
related statements of income and cash flow for such quarter and that portion of
the Fiscal Year ending as of the close of such quarter, setting forth in
comparative form (i) the figures of its Consolidated statement of income for
the corresponding period in the prior year and (ii) the figures of its
Consolidated statement of income and cash flow for that portion of the prior
Fiscal Year ending as of the close of such quarter in the prior Fiscal Year, in
each case certified by a Responsible Officer of the Borrower as fairly
presenting the Consolidated financial condition of the Borrower and its
Subsidiaries as at the dates indicated and the results of their operations and
cash flow for the periods indicated in accordance with GAAP (subject to the
absence of footnote disclosure and normal year-end audit adjustments).

(b)           Annual
Reports.  Within 90 days after
the end of each Fiscal Year, financial information regarding the Borrower and
its Subsidiaries consisting of Consolidated balance sheets of the Borrower and
its Subsidiaries as of the end of such year and related statements of income
and cash flows of the Borrower and its Subsidiaries for such Fiscal Year, all
prepared in conformity with GAAP and certified, in the case of such
Consolidated Financial Statements, without qualification as to the scope of the
audit or as to the Borrower being a going concern by the Group Member’s
Accountants, together with the report of such accounting firm stating that (i) such
Financial Statements fairly present the Consolidated financial condition of the
Borrower and its Subsidiaries as at the dates indicated and the results of
their operations and cash flow for the periods indicated in conformity with
GAAP applied on a basis consistent with prior years (except for changes with
which the Group Member’s Accountants shall concur and that shall have been
disclosed in the notes to the Financial Statements) and (ii) the
examination by the Group Member’s Accountants in connection with such
Consolidated Financial Statements has been made in accordance with generally
accepted auditing standards, and accompanied by a certificate stating that in
the course of the regular audit of the financial statements of the Borrower and
its Subsidiaries such accounting firm has obtained no knowledge that a Default
or Event of Default in respect of the financial covenants contained in Article V (Financial Covenants) has occurred and is
continuing, or, if in the opinion of such accounting firm, a Default or Event
of Default has occurred and is continuing in respect of such financial
covenants, a statement as to the nature thereof.

(c)           Compliance
Certificate. Together with each delivery of any Financial Statement
pursuant to clause (a) or (b)
above, a certificate of a Responsible Officer of the Borrower (each, a “Compliance Certificate”) (i) showing in reasonable
detail the calculations used in determining (1) the Leverage Ratio (for
purposes of determining the Applicable Margin) and (2) the Fixed Charge
Coverage Ratio for the last four Fiscal Quarter period ending on or before such
date and (3) demonstrating compliance with each of the financial covenants
contained in Article V (Financial Covenants)
that is tested on a quarterly basis and (ii) stating that no Default or
Event of Default has occurred and is continuing or, if a Default or an Event of
Default has occurred and is continuing, stating the nature thereof and the
action that the Borrower proposes to take with respect thereto.

 68
 

(d)           Corporate
Chart and Other Collateral Updates. 
Together with each delivery of any Financial Statement pursuant to clause (a) or (b) (i) a
certificate of a Responsible Officer of the Borrower certifying that the
Corporate Chart attached thereto (or the last Corporate Chart delivered
pursuant to this clause (d)) is true,
correct, complete and current as of the date of such Financial Statement and
(ii) above, a certificate of a Responsible Officer of the Borrower in
form and substance satisfactory to the Administrative Agent that all
statements, updates and other documents (including updated schedules) required
to be delivered pursuant to the Security Agreement by any Loan Party in the
preceding Fiscal Quarter have been delivered thereunder (or such delivery
requirement was otherwise duly waived or extended).  The reporting requirements set forth in this clause (d) are in addition to, and are not intended to
and shall not replace or otherwise modify, any obligation of any Loan Party
under any Loan Document (including other notice or reporting
requirements).  Compliance with the
reporting obligations in this clause (d) shall
only provide notice to the Administrative Agent and shall not, by itself,
modify any obligation of any Loan Party under any Loan Document, update any
Schedule to this Agreement or any schedule to any other Loan Document or cure,
or otherwise modify in any way, any failure to comply with any covenant, or any
breach of any representation or warranty, contained in any Loan Document or any
other Default or Event of Default.

(e)           Operating
Budget.  Within 30 days after
the end of each Fiscal Year, a copy of the Consolidated operating budget of the
Borrower and its Subsidiaries for each fiscal month in such Fiscal Year.

(f)            Acquisitions.  After the consummation of any Acquisition for
an aggregate consideration of $20,000,000 or more, (i) within five Business
Days after the consummation of such Acquisition, a certificate of a Responsible
Officer or the Borrower describing such Acquisition in reasonable detail and (ii)
promptly after the Administrative Agent’s reasonable request, but in any event
no later than ten Business Days after delivery of such request, such other
financial information, financial analysis, documentation or other information
relating to such Acquisition as the Administrative Agent or any Lender shall
reasonably request.

(g)           Deemed
Delivery.  Information required to be
delivered pursuant to clauses (a) and
(b) of this Section or Section 6.5 (SEC Filings) shall be deemed to have been
delivered on the date on which the Borrower posts such information on the
Borrower’s website on the Internet at
http://www.tenethealth.com/Tenethealth/InvestorCenter, at
www.sec.gov/edgar/searchedgar/webusers.htm or at another website identified in
a written notice to the Administrative Agent and the Lenders and accessible by
the Administrative Agent and the Lenders without charge; provided,
however, that the Borrower shall deliver electronic or paper copies
of the information required to be delivered pursuant to clauses (a)
and (b) to the Administrative Agent promptly
thereafter.

Section 6.2            Default Notices

As soon as practicable, and in any event within five
Business Days after a Responsible Officer of any Loan Party has actual
knowledge of the existence of any Default, Event of Default or other event
having had a Material Adverse Effect or having any reasonable likelihood of
causing or resulting in a Material Adverse Change, the Borrower shall give the
Administrative Agent notice specifying the nature of such Default or Event of
Default or other event, including the anticipated effect thereof, which notice,
if given by telephone, shall be promptly confirmed in writing on the next
Business Day.

 69
 

Section 6.3            Litigation

Promptly after the commencement thereof, the Borrower
shall give the Administrative Agent written notice of the commencement of all
actions, suits and proceedings before any domestic or foreign Governmental
Authority or arbitrator affecting any Group Member that (i) seeks
injunctive or similar relief or (ii) in the reasonable judgment of the
Borrower, would have a Material Adverse Effect.

Section 6.4            Notices under Related Documents

Promptly after the sending or filing thereof, the
Borrower shall send the Administrative Agent copies of all material notices,
certificates or reports delivered pursuant to, or in connection with, any
Related Document.

Section 6.5            SEC Filings

Promptly after the sending or filing thereof, the
Borrower shall send the Administrative Agent copies of (a) all reports
that Borrower sends to its security holders generally, (b) all reports and
registration statements that any Group Member files with the SEC or any
national or foreign securities exchange or the National Association of
Securities Dealers, Inc., and (c) all other statements concerning material
changes or developments in the business of such Group Member made available by
any Group Member to (x) the public or (y) any other creditor holding Securities
of any Group Members evidencing Indebtedness to all creditors holding such
Securities of an aggregate principal amount of $10,000,000 or more.

Section 6.6            Labor Relations

Promptly after becoming aware of the same, the
Borrower shall give the Administrative Agent written notice of (a) any
labor dispute to which any Group Member is or may become a party, including any
strikes, lockouts or other disputes relating to any of such Person’s plants and
other facilities, that would result in a Material Adverse Effect and
(b) any material Worker Adjustment and Retraining Notification Act or
related liability incurred with respect to the closing of any plant or other
facility of any such Person.

Section 6.7            ERISA Matters

The Borrower shall furnish the Administrative Agent
(with sufficient copies for each of the Lenders) each of the following:

(a)           promptly and in any
event within 30 days after any Group Member or any ERISA Affiliate knows or has
reason to know that any ERISA Event has occurred, written notice describing
such event; and

(b)           promptly and in any
event within 10 days after any ERISA Affiliate knows or has reason to know that
a request for a minimum funding waiver under Section 412 of the Code has
been filed with respect to any Title IV Plan or Multiemployer Plan, a
written statement of a Responsible Officer of the Borrower describing such ERISA
Event or waiver request and any action, that any ERISA Affiliate proposes to
take with respect thereto, together with a copy of any notice filed with the
PBGC or the IRS pertaining thereto.

 70

Section 6.8            Environmental Matters

The Borrower shall provide the Administrative Agent
promptly and in any event within 10 days after any Group Member learning of any
of the following, written notice of each of the following:

(a)           that any Loan Party
is or may be liable to any Person as a result of a Release or threatened
Release that would result in a Material Adverse Effect;

(b)           the receipt by any
Loan Party of any notice of violation of or potential liability under, or
knowledge by such Loan Party that there exists a condition that could
reasonably be expected to result in a violation of or liability under, any
Environmental Law, except for violations and liabilities the consequence of
which, in the aggregate, would not result a Material Adverse Effect; and

(c)           the commencement of
any judicial or administrative proceeding or investigation alleging a violation
of or liability under any Environmental Law, that, in the aggregate, would
result in a Material Adverse Effect.

Section 6.9            Borrowing Base Determination

(a)           The Borrower shall
deliver, as soon as available and in any event not later than twenty days after
the end of each fiscal month, a Borrowing Base Certificate as of the end of
such fiscal month executed by a Responsible Officer of the Borrower.  During a Liquidity Event Period, the Borrower
shall deliver, as soon as available and in any event not later than five
Business Days after the end the last day of each week, an additional Borrowing
Base Certificate as of the end of such period (containing available updated
figures for Eligible Accounts) executed by a Responsible Officer of the
Borrower.

(b)           The Borrower shall
promptly notify the Administrative Agent in writing in the event that at any
time the Borrower receives or otherwise gains knowledge that (i) the
Borrowing Base is less than 90% of the Borrowing Base reflected in the most
recent Borrowing Base Certificate delivered pursuant to clause (a)
above, (ii) the outstanding Revolving Credit Outstandings
exceed the Borrowing Base as a result of a decrease therein, in which case such
notice shall also include the amount of such excess or (iii) a Liquidity
Event Period has begun.

(c)           The Borrower shall
furnish to the Administrative Agent any information that the Administrative
Agent may reasonably request regarding the determination and calculation of the
Borrowing Base.  The Administrative Agent
may, at the Borrower’s sole cost and expense, make test verifications or
reviews of the Accounts in any manner and through any medium that the
Administrative Agent considers advisable, and the Borrower shall furnish all
such assistance and information as the Administrative Agent may require in
connection therewith; provided, however,
that unless a Liquidity Event Period shall then be in effect, no more than two
such test verifications or reviews shall be performed during any calendar
year.  If there is then in effect a
Liquidity Event Period, upon the Administrative Agent’s request and at the
expense of the Borrower, the Borrower shall cause independent public accountants
or others satisfactory to the Administrative Agent to furnish to the
Administrative Agent reports showing reconciliations, aging and test
verifications of, and trial balances for, the Accounts; provided,
however, that unless a Default or Event
of Default shall be continuing, the Administrative Agent shall request no more
than one such report during any calendar year.

 71
 

Section 6.10         Tax Reporting

If the Borrower determines that it intends to treat
the Loans and the Letters of Credit and the related transactions contemplated
hereby as a “reportable transaction” within the meaning of Treasury Regulation
Section 1.6011-4 of the Code, the Borrower shall give the Administrative Agent
written notice thereof and shall deliver to the Administrative Agent all IRS
forms required in connection therewith.

Section 6.11         Health Care Reportable Event

Promptly after any Loan Party becoming aware of the
same, the Borrower shall give the Administrative Agent written notice of any
Health Care Reportable Event that would result in a Material Adverse Effect.

Section 6.12         Other Information

The Borrower shall provide the Administrative Agent or
any Lender with such other information respecting the business, properties,
condition, financial or otherwise, or operations of the Group Members as the
Administrative Agent or such Lender through the Administrative Agent may from
time to time reasonably request.

Article VII

Affirmative Covenants

The Borrower agrees with the Lenders, the Issuers and
the Administrative Agent to each of the following, as long as any Obligation or
any Revolving Credit Commitment remains outstanding and, in each case, unless
the Requisite Lenders otherwise consent in writing:

Section 7.1            Preservation of Corporate Existence,
Etc.

Each Loan Party shall preserve and maintain its legal
existence, rights (charter and statutory) and franchises, except as permitted
by Sections 8.4 (Sale of
Assets) and 8.7 (Restriction on
Fundamental Changes; Acquisitions).

Section 7.2            Compliance with Laws, Etc.

Each Group Member shall comply with all applicable
Requirements of Law, Contractual Obligations and Permits, except where the
failure so to comply would not, in the aggregate, have a Material Adverse
Effect.

Section 7.3            Conduct of Business

Each Group Member shall (a) conduct its business
in the ordinary course and (b) use its reasonable efforts, in the ordinary
course of business, to preserve its business and the goodwill and business of
the customers, advertisers, suppliers and others having business relations with
any Group Member, except in each case where the failure to comply with the
covenants in each of clauses (a)
and (b) above would not, in the aggregate,
have a Material Adverse Effect.

 72
 

Section 7.4            Payment of Taxes, Etc.

Each Group Member shall file all Tax Returns required
to be filed by it before such returns are delinquent and will pay all taxes,
charges and other impositions reflected therein when due and payable, except
where contested in good faith, by proper proceedings and adequate reserves
therefor have been established on the books of such Group Member in conformity
with GAAP.

Section 7.5            Maintenance of Insurance

Each Group Member shall (a) maintain or cause to
be maintained  insurance with responsible
and reputable insurance companies or associations in such amounts and covering
such risks as is usually carried by companies engaged in similar businesses and
owning similar properties in the same general areas in which the Group Member
operates, and, in any event, all insurance required by any Collateral Documents
and (b) cause all applicable insurance relating to any Loan Party to name
the Administrative Agent on behalf of the Secured Parties as additional insured
or loss payee, as appropriate, and to provide that no cancellation, material
addition in amount or material change in coverage shall be effective until
after 30 days’ written notice thereof to the Administrative Agent.

Section 7.6            Access

Each Group Member shall from time to time permit the
Administrative Agent and the Lenders, or any agents or representatives thereof,
within five Business Days (or such longer period as agreed to by the
Administrative Agent) after written notification of the same (except that
during the continuance of an Event of Default, no such notice shall be
required) to (a) examine and make copies of and abstracts from the records
and books of account of each Group Member, (b) visit the properties of
each Group Member, (c) discuss the affairs, finances and accounts of each
Group Member with any officer or director of any Group Member and
(d) communicate directly with any certified public accountants (including
the Group Member’s Accountants).  Each
Group Member shall authorize its certified public accountants (including the
Group Members’ Accountants) of any Group Member to disclose to the
Administrative Agent or any Lender any and all financial statements and other
information of any kind, as the Administrative Agent or any Lender reasonably
requests and that such accountants may have with respect to the business,
financial condition, results of operations or other affairs of any Group
Member.

Section 7.7            Keeping of Books

Each Group Member shall keep proper books of record
and account in which full and correct entries shall be made in conformity with
GAAP of all financial transactions and the assets and business of each Group
Member.

Section 7.8            Maintenance of Properties, Etc.

Each Group Member shall maintain and preserve
(a) in good working order and condition all of its properties necessary in
the conduct of its business, (b) all rights, permits, licenses, approvals
and privileges (including all Permits) used or useful or necessary in the
conduct of its business and (c) all registered patents, trademarks, trade
names, copyrights and service marks with respect to its business, except where failure
to so maintain and preserve the 

 73
 

items set forth in clauses (a),
(b) and (c)
above would not, in the aggregate, have a Material Adverse Effect.

Section 7.9            Application of Proceeds

The Borrower (and, to the extent distributed to them
by the Borrower, each Loan Party) shall use the entire amount of the proceeds
of the Loans as provided in Section 4.14 (Use of
Proceeds).

Section 7.10         Additional Collateral and Guaranties

To the extent not delivered to the Administrative
Agent on or before the Closing Date (including in respect of after-acquired
Collateral and Persons that become a Subsidiary of any Loan Party (other than
an Excluded Subsidiary) after the Closing Date), each Group Member shall
promptly do each of the following, unless otherwise agreed by the
Administrative Agent:

(a)           deliver to the
Administrative Agent such duly-executed supplements and amendments to the
Guaranty, in each case in form and substance reasonably satisfactory to the
Administrative Agent and as the Administrative Agent deems necessary or
advisable in order to ensure that any Loan Party’s Subsidiary that has granted
a security interest in the Collateral pursuant to Section
7.10(b) below guaranties,
as primary obligor and not as surety, the full and punctual payment when due of
the Obligations or any part thereof;

(b)           deliver to the
Administrative Agent such duly-executed joinder and amendments to the Security
Agreement and, if applicable, other Collateral Documents, in each case in form
and substance reasonably satisfactory to the Administrative Agent and as the
Administrative Agent deems necessary or advisable in order to effectively grant
to the Administrative Agent, for the benefit of the Secured Parties, a valid,
perfected and enforceable first-priority security interest in the Collateral;

(c)           to take such other
actions necessary or advisable to ensure the validity or continuing validity of
the guaranties required to be given pursuant to clause (a)
above or to create, maintain or perfect the security interest
required to be granted pursuant to clause (b) above,
including the filing of UCC financing statements in such jurisdictions as may
be required by the Collateral Documents or by law or as may be reasonably
requested by the Administrative Agent; and

(d)           if requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent.

Section 7.11         Cash Management

(a)           Subject to clauses (c) and (d) below, the
Proceeds of the Accounts of a Loan Party shall be paid into any Approved
Deposit Account or Collection Deposit Account as required by clause (b) below; provided, however, that proceeds of the Accounts (including Program
Accounts) may be paid into Deposit Accounts that are neither an Approved
Deposit Account nor a Collection Deposit Account, so long as the amount of
Proceeds contained in all such Deposit Accounts does not exceed $1,000,000 in
the aggregate at the end of any Business Day.

 74
 

(b)           Each Loan Party
shall (i) instruct each Account Debtor or other Person obligated to make a
payment to any of them (x) under any Account (other than Program Accounts) to
make payment, or to continue to make payment, to an Approved Deposit Account or
a Collection Deposit Account and (y) under any Program Account to make payment,
or to continue to make payment, to a Collection Deposit Account and
(ii) deposit in an Approved Deposit Account or a Collection Deposit Account,
as applicable, promptly upon receipt all Proceeds of such Accounts received by
any Loan Party from any other Person; provided, however, that, at any time (including after the occurrence
and during the continuance of an Event of Default, and including after the
exercise by the Administrative Agent of its remedies provided under the Loan
Documents), any amount identified (with reasonably detailed written support) to
the Administrative Agent as (x) an “account” or “payment intangible” (as defined in the UCC) or (y) Proceeds
of any “account” or “payment
intangible” (as defined in the UCC) in each case not constituting
Proceeds of any Account (as defined herein) or “payment
intangible” (as defined in the UCC) pertaining to any Account (as
defined herein) will be promptly (an in no event later than two Business Days
after such written support is delivered) distributed to any Deposit Account as
directed by the Borrower or the Administrative Agent as requested by the
Borrower, as applicable.

(c)           Within 30 calendar
days after the Closing Date (or such later date as the Administrative Agent
may, in its sole discretion, consent in writing) the Borrower will, or will
cause each of the Loan Parties to, deliver to the Administrative Agent with
respect to each Deposit Account of the Borrower or such Loan Party which is to
serve as an Approved Deposit Account, a Deposit Account Control Agreement.

(d)           Within 60 calendar
days after the Closing Date (or such later date as the Administrative Agent
may, in its sole discretion, consent in writing) the Borrower will, or will
cause each of the Loan Parties to, deliver to the Administrative Agent with
respect of each Collection Deposit Account, a Collection Deposit Account
Agreement.  Each such Collection Deposit
Account Agreement shall provide, among other things, that from and after the
date thereof the financial institution at which any Collection Deposits
Accounts are maintained, agrees to transfer on each Business Day all amounts in
each such Collection Deposit Account to an Approved Deposit Account.

(e)           In the event
(i) any Loan Party or any Deposit Account Bank shall, after the date
hereof, terminate an agreement with respect to the maintenance of an Approved
Deposit Account for any reason, (ii) the Administrative Agent shall demand
such termination as a result of the failure of a Deposit Account Bank to comply
with the terms of the applicable Deposit Account Control Agreement or
(iii) the Administrative Agent determines in its sole discretion that the
financial condition of a Deposit Account Bank has materially deteriorated, each
Group Member notify all of their respective obligors that were making payments
to such terminated Approved Deposit Account to make all future payments to
another Approved Deposit Account.

(f)            The Administrative
Agent may establish one or more Cash Collateral Accounts with such depositaries
as it in its sole discretion shall determine. 
The Borrower agrees that each such Cash Collateral Account shall meet
the requirements of the definition of “Cash Collateral Account”.  Without limiting the foregoing, funds on
deposit in any Cash Collateral Account may be invested (but the Administrative
Agent shall be under no obligation to make any such investment) in Cash
Equivalents at the direction of the Administrative Agent and, except during the
continuance of an Event of Default, the Administrative Agent agrees with the
Borrower to issue Entitlement Orders for such investments in Cash Equivalents
as requested by 

 75
 

the Borrower; provided, however, that
the Administrative Agent shall not have any responsibility for, or bear any
risk of loss of, any such investment or income thereon.  No Group Member and no Person claiming on
behalf of or through any Group Member shall have any right to demand payment of
any funds held in any Cash Collateral Account at any time prior to the
termination of all outstanding Letters of Credit and the payment in full of all
then outstanding and payable monetary Obligations.  The Administrative Agent shall apply all
funds on deposit in a Cash Collateral Account as provided in Section 2.9(d) (Mandatory Prepayments).

(g)           The Administrative
Agent shall establish a Concentration Account with such depositary as it in its
sole discretion shall determine.  During
any Liquidity Event Period, any amounts in any Approved Deposit Account shall
be transferred on each Business Day to a Concentration Account for payments in
respect of the Loans and as Cash Collateral for Letter of Credit Obligations on
each Business Day pursuant to Section 2.9(e)( Mandatory
Prepayments).

(h)           The requirements of
this Section 7.11 (Cash
Management) shall not apply to any Group Member that is not a Loan
Party.

Article VIII

Negative Covenants

The Borrower agrees with the Lenders, the Issuers and
the Administrative Agent to each of the following, as long as any Obligation or
any Revolving Credit Commitment remains outstanding and, in each case, unless
the Requisite Lenders otherwise consent in writing:

Section 8.1            Indebtedness

No Group Member shall, directly or indirectly create,
incur, assume or otherwise become or remain directly or indirectly liable with
respect to any Indebtedness except for the following:

(a)           the Secured
Obligations (other than in respect of Hedging Contracts not permitted to be
incurred pursuant to clause (h)
below) and Guaranty Obligations in respect thereto;

(b)           Indebtedness
existing on the date of this Agreement and reflected on the Borrower’s
Consolidated balance sheet as at June 30, 2006, together with any Permitted
Refinancing of any Indebtedness permitted by this clause
(b);

(c)           Guaranty Obligations
incurred by any Group Member in respect of Indebtedness of any Group Member
that is otherwise permitted by this Section 8.1
(other than clause (a) above);

(d)           Capital Lease
Obligations, purchase money and mortgage financings Indebtedness incurred by
any Group Member to finance the acquisition of fixed assets or real property,
together with any Permitted Refinancing of any Indebtedness permitted by this clause (d); provided, however,that the Capital Expenditure related thereto is otherwise
permitted by Section 5.2 (Capital Expenditures) and
that the Dollar Equivalent of the aggregate outstanding 

 76
 

principal
amount of all such Capital Lease Obligations, purchase money Indebtedness and
mortgage financings shall not exceed $75,000,000 at any time;

(e)           a sale and leaseback
transaction to the extent such transaction would constitute Indebtedness;

(f)            Indebtedness
arising from intercompany loans owing to any Group Member and constituting an
Investment permitted under Section 8.3
(Investments);

(g)           Indebtedness arising
under any performance or surety bond entered into in the ordinary course of
business;

(h)           Obligations under
Hedging Contracts permitted under Section 8.13 (No Speculative Transactions);

(i)            unsecured
Indebtedness not otherwise permitted under this Section 8.1
and Permitted Refinancings thereof; provided, however, that the Dollar Equivalent of the aggregate
outstanding principal amount of all such unsecured Indebtedness shall not
exceed $50,000,000 at any time;

(j)            unsecured
Indebtedness of the Borrower that is subordinated to the payment in full of the
Obligations on terms satisfactory to the Requisite Lenders and Permitted
Refinancings thereof; provided, however, that (i) the aggregate Dollar Equivalent of the
principal amount of all such unsecured Indebtedness shall not exceed
$100,000,000 at any time and (ii) the terms of any such Indebtedness shall not
provide for any scheduled repayment, mandatory prepayment or redemption or
sinking fund obligation prior to six months after the Scheduled Termination
Date;

(k)           Indebtedness of a
Person, or in respect of assets, acquired pursuant to an Acquisition and
existing at the time of such Acquisition, including Permitted Refinancings
thereof; provided, however, that any such
Indebtedness that has been incurred or issued in contemplation of such
Acquisition shall only be secured by the assets acquired in such Acquisition;

(l)            Guaranty
Obligations in respect of customary indemnification and purchase price
adjustment obligations incurred in connection with Asset Sales permitted
hereby;

(m)          Guaranty
Obligations granted in favor of title insurers; provided,
however, that any such Guaranty Obligations entered into by the
Borrower or any Subsidiary thereof shall apply to real property assets of the
Borrower and its Subsidiaries;

(n)           other unsecured
Indebtedness; provided, however, that at the
time of incurrence of such Indebtedness and after giving effect thereto, (i) no
Event of Default shall have occurred and be continuing and (ii) the Leverage
Ratio, after giving pro forma effect
to such Indebtedness, shall be less than 5.0 to 1.0 as at the end of each of
the most recently ended four consecutive Fiscal Quarters for which financial
statements have been delivered to the Administrative Agent; and

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(o)           Indebtedness secured
by assets other than Collateral; provided, however,
that the aggregate Dollar Equivalent of the principal amount of all such
Indebtedness shall not exceed $200,000,000 at any time.

Section 8.2            Liens, Etc.

No Group Member shall create or suffer to exist, any
Lien upon or with respect to any of their respective properties or assets,
whether now owned or hereafter acquired, or assign any right to receive income
or profits, except for the following:

(a)           Liens created pursuant
to the Loan Documents;

(b)           Liens existing on
the date of this Agreement and disclosed on Schedule 8.2
(Existing Liens);

(c)           Customary Permitted
Liens on the assets of Group Members;

(d)           purchase money or
mortgage Liens granted by the Borrower or any of its Subsidiaries (including
the interest of a lessor under a Capital Lease and purchase money Liens to
which any property is subject at the time, on or after the date hereof, of the
Borrower’s or such Subsidiary’s acquisition thereof) securing Indebtedness
permitted under Section 8.1(d) or Section 8.1(k) (Indebtedness) and limited in each case to
the property purchased with the proceeds of such purchase money or mortgage
Indebtedness or subject to such Capital Lease or assumed in connection with the
Acquisition;

(e)           any Lien securing
the renewal, extension, refinancing or refunding of any Indebtedness secured by
any Lien permitted by clause (b)
or (d) above or this clause (e)
without any change in the assets subject to such Lien;

(f)            Liens in favor of
lessors securing operating leases (to the extent such operating leases are
permitted hereunder) or, to the extent such transactions create a Lien
hereunder, sale and leaseback transactions;

(g)           Liens not otherwise
permitted by the foregoing clauses of this Section 8.2
securing obligations or other liabilities (other than Indebtedness) of any Loan
Party; provided, however,
that the Dollar Equivalent of the aggregate outstanding amount of all such
obligations and liabilities shall not exceed $25,000,000 at any time;

(h)           any Lien in respect
of Indebtedness permitted under Section 8.1(k)
(Indebtedness), limited in each case to the property of the Person
or the assets acquired with the proceeds of such Indebtedness;

(i)            Liens arising in
connection with the sale or disposition of Accounts permitted under Section 8.4(a) (Sale of Assets); and

(j)            Liens securing
Indebtedness incurred pursuant to Section 8.1(o)
(Indebtedness), limited in each case to property other than
Collateral.

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Section 8.3            Investments

No Group Member shall make or maintain, directly or
indirectly, any Investment except for the following:

(a)           Investments existing
on the date of this Agreement and disclosed on Schedule 8.3
(Existing Investments);

(b)           (i) Investments made
with proceeds of Collateral in cash and Cash Equivalents held in a Deposit
Account in compliance with Section 7.11(a)
(Cash Management) and (ii) Investments of
any asset or property not constituting Collateral or proceeds thereof in cash
and Cash Equivalents;

(c)           Investments by Group
Members that are captive insurance companies in connection with treasury
operations of such companies;

(d)           Investments in
payment intangibles, chattel paper (each as defined in the UCC) and Accounts,
notes receivable and similar items arising or acquired in the ordinary course
of business of the Group Members;

(e)           Investments received
in settlement of amounts due to any Group Member effected in the ordinary
course of business;

(f)            loans or advances
to employees of any Group Member in the ordinary course of business other than
any loans or advances that would be in violation of Section 402 of the
Sarbanes-Oxley Act; provided, however, that the Dollar Equivalent of the aggregate
principal amount of all loans and advances permitted pursuant to this clause (f) shall not exceed $1,000,000 at any time;

(g)           Guaranty Obligations
permitted by Section 8.1 (Indebtedness);

(h)           Investments by (i)
any Loan Party in any other Loan Party, (ii) any Group Member that is not a
Loan Party in any Group Member, (iii) Investments constituting Acquisitions,
Investments in joint ventures, and Investments in Subsidiaries (other than Loan
Parties) or (iv) any other Investments not otherwise permitted pursuant to
this Section 8.3; provided,
however, that at the time of making an Investment pursuant to clauses (iii) or (iv) above and after giving effect thereto, (A) if the Excess
Availability Condition is not satisfied, any such Investment shall be permitted
only if, or to the extent that, the Dollar Equivalent of the aggregate amount
of all such Investments made following the Closing Date at any time when the
Excess Availability Condition is not satisfied immediately after giving effect
to such Investments would not exceed $100,000,000 and (B) if such Investment is
an Acquisition or an Investment pursuant to clause (iv) above,
in each case (1) no Default or Event of Default shall have occurred and be
continuing or result therefrom and (2) the Borrower is in pro forma
compliance with Section 5.1 (Minimum Fixed Charge Coverage
Ratio) as at the end of the last day of the four consecutive Fiscal
Quarters most recently ended for which financial statements have been delivered
to the Administrative Agent, calculated giving pro forma
effect to such Acquisition or other Investment as if such Acquisition or other
Investment had been consummated on the first day of such four consecutive
Fiscal Quarters; and

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(i)            Investments
constituting non-cash consideration received by the Borrower or any Subsidiary
in connection with Asset Sales permitted hereby, to the extent such non-cash
consideration is permitted to be received hereunder.

Section 8.4            Sale of Assets

No Loan Party shall sell, convey, transfer, lease or
otherwise dispose of, any of their respective assets or any interest therein
(including the sale or factoring at maturity or collection of any accounts) to
any Person, or permit or suffer any other Person to acquire any interest in any
of their respective assets or (except in the case of the Borrower) issue or
sell any shares of their Stock or any Stock Equivalents (any such disposition
being an “Asset Sale”), except for the following:

(a)           the sale or
disposition of Cash Equivalents or Inventory, in each case in the ordinary
course of business, and the sale or disposition of private or self-pay Accounts
that are more than 270 days past the Discharge Date;

(b)           the sale or
disposition of Equipment that has become obsolete, worn-out surplus or is no
longer used or useful in the business of such Loan Party or is replaced in the
ordinary course of business;

(c)           (i) a true lease or
sublease of Real Property not constituting Indebtedness and not constituting a
sale and leaseback transaction and (ii) a sale of assets pursuant to a sale and
leaseback transaction;

(d)           assignments and
licenses of intellectual property of the Loan Parties in the ordinary course of
business;

(e)           any Asset Sale to
the Borrower or any Guarantor;

(f)            any Group Member
can issue or sell any shares of its Stock or any Stock Equivalents thereof in
connection with any bona fide joint venture arrangement;

(g)           any Asset Sale
disclosed on Schedule 8.4 (Asset Sales),
subject as provided below; and

(h)           as long as no
Default or Event of Default is continuing or would result therefrom, any other
Asset Sale not otherwise permitted under clauses (a) through
(g) above; provided,
however, that with respect to any such
Asset Sale pursuant to this clause (h), (x)
the aggregate book value of all assets subject to all such Asset Sales
following the Closing Date, after giving pro forma
effect thereto, shall not exceed 35% of the Consolidated net book value of the
assets of the Borrower and its Subsidiaries as reflected on the Borrower’s
Consolidated balance sheet as at June 30, 2006; and (y) the seller of such
assets shall receive at least 75% of the consideration for any such Asset Sale
in cash (provided, that for the purpose of this clause (y), secured notes issued by the buyer of such assets
that are secured by the assets being sold and evidencing obligations to pay up
to 20% of the cash consideration for any such asset shall be deemed cash);

provided, further, that
in the case of any Asset Sale pursuant to clauses (g) or (h) above (or Asset Sales, if such assets are sold in a
series of related transactions) with respect to

 80

assets having a net book value greater than
$20,000,000 each such Asset Sale shall only be permitted hereby if it has been
formally approved by the Borrower’s board of directors and on reasonable arms’
length terms.

Section 8.5            Restricted Payments

No Group Member shall, directly or indirectly,
declare, order, pay, make or set apart any sum for any Restricted Payment
except for the following:

(a)           Restricted Payments
by any (i) Subsidiary of the Borrower to the Borrower or any Guarantor and (ii)
Subsidiary of the Borrower that is not a Loan Party to the holders of its
equity interests on a pro rata basis in accordance with their holdings in such
Subsidiary;

(b)           dividends
and distributions declared and paid on the common Stock of the Borrower and
payable only in common Stock of the Borrower;

(c)           so long as no
Default or Event of Default has occurred and is continuing or would result
therefrom, the repurchase of shares of, or options to purchase shares of, Stock
or Stock Equivalents issued by the Borrower from employees, officers or
directors of the Borrower or any Subsidiary thereof in any aggregate amount not
to exceed $2,500,000 in any calendar year or $10,000,000 in the aggregate at
any time; and

(d)           Restricted Payments
not otherwise permitted by this Section 8.5 in
an aggregate amount not to exceed $10,000,000 at any time.

Section 8.6            Prepayment and Cancellation of
Indebtedness

No Group Member shall prepay, redeem, purchase,
defease or otherwise satisfy prior to the scheduled maturity thereof in any
manner, or make any payment in violation of any subordination terms of, any (1)
Subordinated Debt or (2) Senior Debt with an aggregate principal amount greater
than $50,000,000; provided, however,
that each Group Member may (i) prepay the Obligations in accordance with
the terms of this Agreement, (ii) make regularly scheduled or otherwise
required repayments or redemptions of Indebtedness, (iii) prepay any
Indebtedness payable to the Borrower by any of its Subsidiaries,
(iv) renew, extend, refinance and refund Indebtedness, as long as such
renewal, extension, refinancing or refunding is permitted under Section 8.1(Indebtedness) and (v) if prior to and after
giving effect to any such prepayment, redemption, repurchase, defeasance or
other satisfaction of any such Senior Debt, the Borrower is in pro forma compliance with the Excess Availability Condition,
such Group Member shall be permitted to prepay, redeem, repurchase, defease or
otherwise satisfy any Senior Debt without limitation.

Section 8.7            Restriction on Fundamental Changes;
Acquisitions

No Loan Party shall, (a) except in connection
with an Acquisition or an Investment permitted pursuant to Section 8.3
(Investments), (i) merge with any Person other than any other
Loan Party, (ii) consolidate with any Person other than any other Loan
Party, (iii) acquire all or substantially all of the Stock or Stock
Equivalents of any Person, (iv) acquire all or substantially all of the
assets of any Person or all or substantially all of the assets constituting the
business of a division, branch or other unit operation of any Person or
(v) enter 

 81
 

into any joint venture or partnership with any Person
or (b) acquire or create any Subsidiary unless, after giving effect to
such creation or acquisition, the Borrower is in compliance with Section 7.10 (Additional Collateral and Guaranties).

Section 8.8            Change in Nature of Business

No Loan Party shall make any material change in the
nature or conduct of its business as carried on at the date hereof, whether in
connection with an Acquisition or otherwise.

Section 8.9            Transactions with Affiliates

No Group Member shall enter into any transaction
directly or indirectly with or for the benefit of any Affiliate of the Borrower
that is not a Guarantor (including guaranties and assumptions of obligations of
any such Affiliate), except for (i) transactions on a basis no less
favorable to the Borrower or, as the case may be, such Subsidiary thereof as
could be reasonably obtained in a comparable arm’s length transaction with a
Person not an Affiliate thereof, (ii) salaries and other director or
employee compensation to officers or directors of the Borrower or any of its
Subsidiaries commensurate with current compensation levels and (iii) Asset
Sales, Investments and Restricted Payments permitted pursuant to this
Agreement.

Section 8.10         Limitations on Restrictions on
Subsidiary Distributions; No New Negative Pledge

Except pursuant to the Loan Documents and any
agreements governing purchase money or mortgage financing Indebtedness or
Capital Lease Obligations permitted by Section 8.1(b),
(d), (e) or (k)
(Indebtedness) (in the case of
agreements permitted by such clauses, any prohibition or limitation shall only
be effective against the assets financed thereby), no Group Member shall
(a) suffer to exist or become effective any consensual encumbrance or
restriction of any kind on the ability of such Subsidiary to pay dividends or
make any other distribution or transfer of funds or assets or make loans or
advances to or other Investments in, or pay any Indebtedness owed to, any Group
Member or (b) enter into or suffer to exist or become effective any
agreement prohibiting or limiting the ability of any Group Member to create,
incur, assume or suffer to exist any Lien upon any of its property, assets or revenues,
whether now owned or hereafter acquired, to secure the Obligations, including
any agreement requiring any other Indebtedness or Contractual Obligation to be
equally and ratably secured with the Obligations, except for the following:

(i)            restrictions
imposed by other permitted Indebtedness ranking pari passu with the
Obligations; provided, however, that such
restrictions are no more restrictive than those imposed by the Related
Documents;

(ii)           restrictions
with respect solely to any Subsidiary imposed pursuant to a binding agreement
which has been entered into for the sale of all or substantially all of the
Stock or assets of such Subsidiary; provided, however,
that such restrictions apply solely to the Stock or assets of such Subsidiary
which are being sold;

(iii)          in
connection with any permitted lease of property entered into in the ordinary
course of business, customary provisions restricting the subletting or
assignment of, or Liens on, the property subject to such lease; and

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(iv)          by
reason of customary provisions restricting assignments, subletting or other
transfers contained in leases, licenses, joint venture agreements and similar
agreements.

Section 8.11         Modification of Constituent Documents

No Group Member shall change its capital structure
(including in the terms of its outstanding Stock) or otherwise amend its
Constituent Documents, except for changes and amendments that could not
reasonably be expected to result in a Default or Event of Default.

Section 8.12         Margin Regulations

No Group Member shall use all or any portion of the
proceeds of any credit extended hereunder to purchase or carry margin stock
(within the meaning of Regulation U of the Federal Reserve Board) in
contravention of Regulation U of the Federal Reserve Board.

Section 8.13         No Speculative Transactions

No Group Member shall engage in any speculative
transaction or in any transaction involving Hedging Contracts except for the
sole purpose of hedging in the normal course of business and consistent with
industry practices.

Section 8.14         Compliance with ERISA

No ERISA Affiliate shall cause or suffer to exist
(a) any event that could result in the imposition of a Lien with respect
to any Title IV Plan or Multiemployer Plan or (b) any other ERISA Event
that would have a Material Adverse Effect in the aggregate.  No Group Member shall cause or suffer to
exist any event that could result in the imposition of a Lien with respect to
any Benefit Plan.

Section 8.15         Environmental

No Group Member shall allow a Release of any
Contaminant in violation of any Environmental Law; provided, however, that the Borrower shall not be deemed in violation
of this Section 8.15 if all Environmental
Liabilities and Costs incurred or reasonably expected to be incurred by the
Loan Parties as the consequence of all such Releases would not result in a
Material Adverse Effect.

Article IX

Events of Default

Section 9.1            Events of Default

Each of the following events shall be an Event of
Default:

(a)           the Borrower shall
fail to pay any principal of any Loan or any Reimbursement Obligation when the
same becomes due and payable; or

 83
 

(b)           the Borrower shall
fail to pay any interest on any Loan, any fee under any of the Loan Documents
or any other Obligation (other than one referred to in clause (a)
above) and such non-payment continues for a period of three Business
Days after the due date therefor; or

(c)           any representation
or warranty made or deemed made by any Loan Party in any Loan Document or by
any Loan Party (or any of its officers) in connection with any Loan Document
shall prove to have been incorrect in any material respect when made or deemed
made; or

(d)           any Loan Party shall
fail to perform or observe (i) any term, covenant or agreement contained
in Article V (Financial Covenants),
Section 6.1 (Financial Statements), 6.2(Default Notices), 6.9 (Borrowing Base
Determination), 7.1 (Preservation of
Corporate Existence, Etc.), 7.6 (Access),
7.9 (Application of Proceeds), 7.10 (Additional
Collateral and Guaranties), or 7.11 (Cash Management) or
Article VIII (Negative Covenants) or
(ii) any other term, covenant or agreement contained in this Agreement or
in any other Loan Document if such failure under this clause (ii)
shall remain unremedied for 30 days after the earlier of (A) the date on
which a Responsible Officer of the Borrower becomes aware of such failure and
(B) the date on which written notice thereof shall have been given to the
Borrower by the Administrative Agent or any Lender; or

(e)           (i) Any Group
Member shall fail to make any payment on any Indebtedness of such Group Member
(other than the Obligations) or any Guaranty Obligation in respect of
Indebtedness of any other Person, and, in each case, such failure relates to
Indebtedness having a principal amount of $20,000,000 or more, when the same
becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), (ii) any other event shall occur or
condition shall exist under any agreement or instrument relating to any such
Indebtedness, if the effect of such event or condition is to accelerate, or to
permit the acceleration of, the maturity of such Indebtedness or (iii) any
such Indebtedness shall become or be declared to be due and payable, or be
required to be prepaid or repurchased (other than by a regularly scheduled required
prepayment), prior to the stated maturity thereof; or

(f)            (i) Any Loan
Party shall generally not pay its debts as such debts become due, shall admit
in writing its inability to pay its debts generally or shall make a general
assignment for the benefit of creditors, (ii) any proceeding shall be
instituted by or against any Loan Party seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or its debts, under any
Requirement of Law relating to bankruptcy, insolvency or reorganization or
relief of debtors, or seeking the entry of an order for relief or the
appointment of a custodian, receiver, trustee or other similar official for it
or for any substantial part of its property; provided,
however, that, in the case of any such
proceedings instituted against any Loan Party (but not instituted by any Loan
Party), either such proceedings shall remain undismissed or unstayed for a
period of 60 days or more or any action sought in such proceedings shall occur
or (iii) any Loan Party shall take any corporate action to authorize any
action set forth in clauses (i) and
(ii) above; or

(g)           one or more
judgments or orders (or other similar process) involving, (i) in the case of
money judgments, an aggregate amount whose Dollar Equivalent exceeds
$20,000,000, and (ii) in the case of non-monetary judgments, such judgments, in
the aggregate, that would result in a Material Adverse Effect, in each case, to
the extent not covered by insurance (excluding insurance where the applicable
insurer has disputed its obligations to pay 

 84
 

thereunder),
shall be rendered against one or more of the Borrower and its Subsidiaries and
such judgment, order or similar process shall continue unsatisfied and unstayed
for a period of 30 days; or

(h)           an ERISA Event shall
occur and the Dollar Equivalent of the amount of all liabilities and
deficiencies resulting therefrom, whether or not assessed, exceeds $10,000,000
in the aggregate; or

(i)            any provision of
any Loan Document after delivery thereof shall for any reason fail or cease to
be valid and binding on, or enforceable against, any Loan Party party thereto,
or any Loan Party shall so state in writing; or

(j)            any Collateral
Document shall for any reason fail or cease to create a valid and enforceable
Lien on any Collateral purported to be covered thereby or, except as permitted
by the Loan Documents, such Lien shall fail or cease to be a perfected and
first priority Lien, or any Loan Party shall so state in writing; or

(k)           there shall occur
any Change of Control.

Section 9.2            Remedies

During the continuance of any Event of Default, the
Administrative Agent (a) may, and, at the request of the Requisite
Lenders, shall, by notice to the Borrower declare that all or any portion of
the Revolving Credit Commitments be terminated, whereupon the obligation of
each Revolving Credit Lender to make any Loan and each Issuer to Issue any
Letter of Credit shall immediately terminate and (b) may, and, at the
request of the Requisite Lenders, shall, by notice to the Borrower, declare the
Loans, all interest thereon and all other amounts and Obligations payable under
this Agreement to be forthwith due and payable, whereupon the Loans, all such
interest and all such amounts and Obligations shall become and be forthwith due
and payable, without presentment, demand, protest or further notice of any
kind, all of which are hereby expressly waived by the Borrower; provided, however, that
upon the occurrence of the Events of Default specified in Section 9.1(f)
(Events of Default), (x) the Revolving Credit Commitments of
each Revolving Credit Lender to make Loans and the commitments of each
Revolving Credit Lender and Issuer to Issue or participate in Letters of Credit
shall each automatically be terminated and (y) the Loans, all such
interest and all such amounts and Obligations shall automatically become and be
due and payable, without presentment, demand, protest or any notice of any
kind, all of which are hereby expressly waived by the Borrower.  In addition to the remedies set forth above,
the Administrative Agent may exercise any remedies provided for by the
Collateral Documents in accordance with the terms thereof or any other remedies
provided by applicable law.

Section 9.3            Actions in Respect of Letters of
Credit

At any time (i) upon the Revolving Credit
Termination Date, (ii) after the Revolving Credit Termination Date when
the aggregate funds on deposit in Cash Collateral Accounts shall be less than
105% of the Letter of Credit Obligations, (iii) as may be required by Section 2.9 (Mandatory Prepayments), the Borrower shall pay
to the Administrative Agent in immediately available funds at the
Administrative Agent’s office referred to in Section 11.8
(Notices, Etc.), for deposit in a Cash Collateral Account,
(x) in the case of clauses (i)
and (ii) above, the amount required to that,
after such payment, the aggregate funds on deposit in the 

 85
 

Cash Collateral Accounts equals or exceeds 105% of the
sum of all outstanding Letter of Credit Obligations and (y) in the case of
clause (iii) above, the amount
required by Section 2.9 (Mandatory Prepayments).  The Administrative Agent may, from time to
time after funds are deposited in any Cash Collateral Account, apply funds then
held in such Cash Collateral Account to the payment of any amounts, in
accordance with Section 2.9(d) (Mandatory Prepayments)
and Section 2.13(g) (Payments and Computations),
as shall have become or shall become due and payable by the Borrower to the Issuers
or Lenders in respect of the Letter of Credit Obligations.  The Administrative Agent shall promptly give
written notice of any such application; provided, however, that the failure to give such written notice shall
not invalidate any such application.

Section 9.4            Rescission

If at any time after termination of the Revolving
Credit Commitments or acceleration of the maturity of the Loans, the Borrower
shall pay all arrears of interest and all payments on account of principal of
the Loans and Reimbursement Obligations that shall have become due otherwise
than by acceleration (with interest on principal and, to the extent permitted
by law, on overdue interest, at the rates specified herein) and all Events of
Default and Defaults (other than non-payment of principal of and accrued
interest on the Loans due and payable solely by virtue of acceleration) shall
be remedied or waived pursuant to Section 11.1
(Amendments, Waivers, Etc.), then upon the written consent of the
Requisite Lenders and written notice to the Borrower, the termination of the
Revolving Credit Commitments or the acceleration and their consequences may be
rescinded and annulled; provided, however, that such action shall not affect any subsequent
Event of Default or Default or impair any right or remedy consequent
thereon.  The provisions of the preceding
sentence are intended merely to bind the Lenders and the Issuers to a decision
that may be made at the election of the Requisite Lenders, and such provisions
are not intended to benefit the Borrower and do not give the Borrower the right
to require the Lenders to rescind or annul any acceleration hereunder, even if
the conditions set forth herein are met.

Article X

The Administrative Agent

Section 10.1         Authorization and Action

(a)           Each Lender and each
Issuer hereby appoints Citicorp as the Administrative Agent hereunder and each
Lender and each Issuer authorizes the Administrative Agent to take such action
as agent on its behalf and to exercise such powers under this Agreement and the
other Loan Documents as are delegated to the Administrative Agent under such
agreements and to exercise such powers as are reasonably incidental
thereto.  Without limiting the foregoing,
each Lender and each Issuer hereby authorizes the Administrative Agent to execute
and deliver, and to perform its obligations under, each of the Loan Documents
to which the Administrative Agent is a party, to exercise all rights, powers
and remedies that the Administrative Agent may have under such Loan Documents
and, in the case of the Collateral Documents, to act as agent for the Lenders,
Issuers and the other Secured Parties under such Collateral Documents.

(b)           As to any matters
not expressly provided for by this Agreement and the other Loan Documents
(including enforcement or collection), the Administrative Agent shall not be
required to exercise any discretion or take any action, but shall be required
to act or to refrain 

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from acting
(and shall be fully protected in so acting or refraining from acting) upon the
instructions of the Requisite Lenders, and such instructions shall be binding
upon all Lenders and each Issuer; provided, however, that the Administrative Agent shall not be
required to take any action that (i) the Administrative Agent in good
faith believes exposes it to personal liability unless the Administrative Agent
receives an indemnification satisfactory to it from the Lenders and the Issuers
with respect to such action or (ii) is contrary to this Agreement or
applicable law.  The Administrative Agent
agrees to give to each Lender and each Issuer prompt notice of each notice
given to it by any Loan Party pursuant to the terms of this Agreement or the
other Loan Documents.

(c)           In performing its
functions and duties hereunder and under the other Loan Documents, the Administrative
Agent is acting solely on behalf of the Lenders and the Issuers except to the
limited extent provided in Section 2.7(c)
(Evidence of Debt), and its duties are entirely administrative in
nature.  The Administrative Agent does
not assume and shall not be deemed to have assumed any obligation other than as
expressly set forth herein and in the other Loan Documents or any other
relationship as the agent, fiduciary or trustee of or for any Lender, Issuer or
holder of any other Obligation.  The
Administrative Agent may perform any of its duties under any Loan Document by
or through its agents or employees.

(d)           In the event that
Citicorp or any of its Affiliates shall be or become an indenture trustee under
the Trust Indenture Act of 1939 (as amended, the “Trust Indenture Act”) in
respect of any securities issued or guaranteed by any Loan Party, the parties
hereto acknowledge and agree that any payment or property received in
satisfaction of or in respect of any Obligation of such Loan Party hereunder or
under any other Loan Document by or on behalf of Citicorp in its capacity as
the Administrative Agent for the benefit of any Loan Party under any Loan
Document (other than Citicorp or an Affiliate of Citicorp) and which is applied
in accordance with the Loan Documents shall be deemed to be exempt from the
requirements of Section 311 of the Trust Indenture Act pursuant to Section
311(b)(3) of the Trust Indenture Act.

(e)           The Arranger shall
have no obligations or duties whatsoever in such capacity under this Agreement
or any other Loan Document and shall incur no liability hereunder or thereunder
in such capacity.

(e)           Notwithstanding
anything to the contrary contained in this Agreement, Bank of America, N.A., is
a Lender designated as a “syndication agent” and each of General Electric
Capital Corporation and The Bank of Nova Scotia, is a Lender designated as “co-documentation
agent”, in each case for title purposes only and in such respective capacity
shall have no obligations or duties whatsoever under this Agreement or any
other Loan Document to any Loan Party, any Lender or any Issuer, and shall have
no rights separate from its rights as a Lender.

Section 10.2         Administrative Agent’s Reliance, Etc.

None of the Administrative Agent, any of its
Affiliates or any of their respective directors, officers, agents or employees
shall be liable for any action taken or omitted to be taken by it, him, her or
them under or in connection with this Agreement or the other Loan Documents,
except for its, his, her or their own gross negligence or willful
misconduct.  Without limiting the
foregoing, the Administrative Agent (a) may treat the payee of any
Revolving Credit Note as its holder until such Revolving Credit Note has been
assigned in accordance with  Section 11.2 (Assignments and Participations),
(b) may rely on the Register to the extent set forth in 

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Section 2.7
(Evidence of Debt), (c) may consult
with legal counsel (including counsel to the Borrower or any other Loan Party),
independent public accountants and other experts selected by it and shall not
be liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts,
(d) makes no warranty or representation to any Lender or Issuer and shall not
be responsible to any Lender or Issuer for any statements, warranties or
representations made by or on behalf of any Group Member in or in connection
with this Agreement or any other Loan Document, (e) shall not have any
duty to ascertain or to inquire either as to the performance or observance of
any term, covenant or condition of this Agreement or any other Loan Document,
as to the financial condition of any Loan Party or as to the existence or
possible existence of any Default or Event of Default, (f) shall not be
responsible to any Lender or Issuer for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the attachment,
perfection or priority of any Lien created or purported to be created under or
in connection with, this Agreement, any other Loan Document or any other
instrument or document furnished pursuant hereto or thereto and (g) shall
incur no liability under or in respect of this Agreement or any other Loan
Document by acting upon any notice, consent, certificate or other instrument or
writing (which writing may be a telecopy or electronic mail) or any telephone
message believed by it to be genuine and signed or sent by the proper party or
parties.

Section 10.3         Posting of Approved Electronic
Communications

(a)           Each of the Lenders,
the Issuers and each Group Member agree that the Administrative Agent may, but
shall not be obligated to, make the Approved Electronic Communications
available to the Lenders and Issuers by posting such Approved Electronic Communications
on IntraLinksTM or a substantially similar electronic platform chosen by the
Administrative Agent to be its electronic transmission system (the “Approved Electronic Platform”).

(b)           Although the
Approved Electronic Platform and its primary web portal are secured with
generally-applicable security procedures and policies implemented or modified
by the Administrative Agent from time to time (including, as of the Closing
Date, a dual firewall and a User ID/Password Authorization System) and the Approved
Electronic Platform is secured through a single-user-per-deal authorization
method whereby each user may access the Approved Electronic Platform only on a
deal-by-deal basis, each of the Lenders, the Issuers and each Group Member
acknowledges and agrees that the distribution of material through an electronic
medium is not necessarily secure and that there are confidentiality and other
risks associated with such distribution. 
In consideration for the convenience and other benefits afforded by such
distribution and for the other consideration provided hereunder, the receipt
and sufficiency of which is hereby acknowledged, each of the Lenders, the
Issuers, and each Group Member hereby approves distribution of the Approved
Electronic Communications through the Approved Electronic Platform and
understands and assumes the risks of such distribution.

(c)           The Approved Electronic Platform and the
Approved Electronic Communications are provided “as is” and “as available”.  None of the Administrative Agent or any of
its Affiliates or any of their respective officers, directors, employees,
agents, advisors or representatives (the “Agent Affiliates”) warrant the
accuracy, adequacy or completeness of the Approved Electronic Communications or
the Approved Electronic Platform and each expressly disclaims liability for
errors or omissions in the Approved Electronic Platform and the Approved
Electronic Communications.  No warranty
of any kind, express, 

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implied or statutory, including, without limitation, any warranty of merchantability,
fitness for a particular purpose, non-infringement of third party rights or
freedom from viruses or other code defects, is made by the Agent Affiliates in
connection with the Approved Electronic Platform or the Approved Electronic
Communications.

(d)           Each of the
Lenders, the Issuers and each Group Member agree that the Administrative Agent
may, but (except as may be required by applicable law) shall not be obligated
to, store the Approved Electronic Communications on the Approved Electronic Platform
in accordance with the Administrative Agent’s generally-applicable document
retention procedures and policies.

Section 10.4         The Administrative Agent Individually

With respect to its Ratable Portion, Citicorp shall
have and may exercise the same rights and powers hereunder and is subject to
the same obligations and liabilities as and to the extent set forth herein for
any other Lender.  The terms “Lenders”, “Revolving Credit Lenders”,
“Requisite Lenders” and any similar terms
shall, unless the context clearly otherwise indicates, include, without
limitation, the Administrative Agent in its individual capacity as a Lender, a
Revolving Credit Lender or as one of the Requisite Lenders.  Citicorp and its Affiliates may accept
deposits from, lend money to, and generally engage in any kind of banking,
trust or other business with, any Loan Party as if Citicorp were not acting as
the Administrative Agent.

Section 10.5         Lender Credit Decision

Each Lender and each Issuer acknowledges that it
shall, independently and without reliance upon the Administrative Agent or any
other Lender, conduct its own independent investigation of the financial
condition and affairs of the Borrower and each other Loan Party in connection
with the making and continuance of the Loans and with the issuance of the
Letters of Credit.  Each Lender and each
Issuer also acknowledges that it shall, independently and without reliance upon
the Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement and other
Loan Documents.  Except for documents
expressly required by any Loan Document to be transmitted by the Administrative
Agent to the Lenders or the Issuers, the Administrative Agent shall not have
any duty or responsibility to provide any Lender or any Issuer with any credit
or other information concerning the business, prospects, operations, property,
financial and other condition or creditworthiness of any Loan Party or any
Affiliate of any Loan Party that may come into the possession of the
Administrative Agent or any Affiliate thereof or any employee or agent of any
of the foregoing.

Section 10.6         Indemnification

Each Revolving Credit Lender agrees to indemnify the
Administrative Agent and each of its Affiliates, and each of their respective
directors, officers, employees, agents and advisors (to the extent not
reimbursed by the Borrower), from and against such Revolving Credit Lender’s
aggregate Ratable Portion of any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses and
disbursements (including fees, expenses and disbursements of financial and
legal advisors) of any kind or nature whatsoever that may be imposed on,
incurred by, or asserted against, the Administrative Agent or any of its
Affiliates, directors, officers, employees, agents and advisors in any way
relating to or arising out of this 

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Agreement or the other Loan Documents or any action
taken or omitted by the Administrative Agent under this Agreement or the other
Loan Documents; provided, however,
that no Revolving Credit Lender shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the Administrative Agent’s
or such Affiliate’s gross negligence or willful misconduct.  Without limiting the foregoing, each
Revolving Credit Lender agrees to reimburse the Administrative Agent promptly
upon demand for its ratable share of any out-of-pocket expenses (including
fees, expenses and disbursements of financial and legal advisors) incurred by
the Administrative Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
its rights or responsibilities under, this Agreement or the other Loan
Documents, to the extent that the Administrative Agent is not reimbursed for
such expenses by the Borrower or another Loan Party.

Section 10.7         Successor Administrative Agent

The Administrative Agent may resign at any time by
giving written notice thereof to the Lenders and the Borrower.  Upon any such resignation, the Requisite
Lenders shall have the right to appoint a successor Administrative Agent.  If no successor Administrative Agent shall
have been so appointed by the Requisite Lenders, and shall have accepted such
appointment, within 30 days after the retiring Administrative Agent’s giving of
notice of resignation, then the retiring Administrative Agent may, on behalf of
the Lenders, appoint a successor Administrative Agent, selected from among the
Lenders.  In either case, such
appointment shall be subject to the prior written approval of the Borrower
(which approval may not be unreasonably withheld and shall not be required upon
the occurrence and during the continuance of an Event of Default).  Upon the acceptance of any appointment as
Administrative Agent by a successor Administrative Agent, such successor
Administrative Agent shall succeed to, and become vested with, all the rights,
powers, privileges and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and
obligations under this Agreement and the other Loan Documents.  Prior to any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the retiring Administrative
Agent shall take such action as may be reasonably necessary to assign to the
successor Administrative Agent its rights as Administrative Agent under the
Loan Documents.  After such resignation,
the retiring Administrative Agent shall continue to have the benefit of this Article X as to any actions taken or omitted to be
taken by it while it was Administrative Agent under this Agreement and the
other Loan Documents.

Section 10.8         Concerning the Collateral and the
Collateral Documents

(a)           Each Lender and each
Issuer agrees that any action taken by the Administrative Agent or the
Requisite Lenders (or, where required by the express terms of this Agreement, a
greater proportion of the Lenders) in accordance with the provisions of this
Agreement or of the other Loan Documents, and the exercise by the
Administrative Agent or the Requisite Lenders (or, where so required, such
greater proportion) of the powers set forth herein or therein, together with
such other powers as are reasonably incidental thereto, shall be authorized and
binding upon all of the Lenders, Issuers and other Secured Parties.  Without limiting the generality of the
foregoing, the Administrative Agent shall have the sole and exclusive right and
authority to (i) act as the disbursing and collecting agent for the
Lenders and the Issuers with respect to all payments and collections arising in
connection herewith and with

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the Collateral
Documents, (ii) execute and deliver each Collateral Document and accept
delivery of each such agreement delivered by any Group Member, (iii) act
as collateral agent for the Lenders, the Issuers and the other Secured Parties
for purposes of the perfection of all security interests and Liens created by
such agreements and all other purposes stated therein, provided,
however, that the Administrative Agent
hereby appoints, authorizes and directs each Lender and Issuer to act as
collateral sub-agent for the Administrative Agent, the Lenders and the Issuers
for purposes of the perfection of all security interests and Liens with respect
to the Collateral, including any Deposit Accounts maintained by a Loan Party
with, and cash and Cash Equivalents held by, such Lender or such Issuer,
(iv) manage, supervise and otherwise deal with the Collateral, including
the making of Protective Advances in an aggregate amount not to exceed the
lesser of $25,000,000 and the aggregate amount of the unused Revolving Credit
Commitments (unless, in the case of Protective Advances, the Administrative
Agent has been instructed by the Requisite Lenders not to make Protective
Advances), (v) take such action as is necessary or desirable to maintain
the perfection and priority of the security interests and Liens created or
purported to be created by the Collateral Documents and (vi) except as may
be otherwise specifically restricted by the terms hereof or of any other Loan
Document, exercise all remedies given to the Administrative Agent, the Lenders,
the Issuers and the other Secured Parties with respect to the Collateral under
the Loan Documents relating thereto, applicable law or otherwise.

(b)           Each of the Lenders
and the Issuers hereby consents to the release and hereby directs, in
accordance with the terms hereof, the Administrative Agent to release (or, in
the case of clause (ii) below, release or
subordinate) any Lien held by the Administrative Agent for the benefit of the
Lenders and the Issuers against any of the following:

(i)            all
of the Collateral and all Loan Parties, upon termination of the Revolving
Credit Commitments and payment and satisfaction in full of all Loans, all
Reimbursement Obligations and all other Obligations that the Administrative
Agent has been notified in writing are then due and payable (and, in respect of
contingent Letter of Credit Obligations, with respect to which cash collateral
has been deposited or a back-up letter of credit has been issued, in either
case in the appropriate currency and on terms satisfactory to the
Administrative Agent and the applicable Issuers);

(ii)           any
assets that are subject to a Lien permitted by Section 8.2(d)
or (e) (Liens, Etc.); and

(iii)          any
part of the Collateral sold or disposed of by a Loan Party if such sale or disposition
is permitted by this Agreement (or permitted pursuant to a waiver of or consent
to a transaction otherwise prohibited by this Agreement).

Each of the Lenders and the Issuers hereby directs the
Administrative Agent to execute and deliver or file such termination and
partial release statements and do such other things as are necessary to release
Liens to be released pursuant to this Section 10.8
promptly upon the effectiveness of any such release.

Section 10.9         Collateral Matters Relating to Related
Obligations

The benefit of the Loan Documents and of the
provisions of this Agreement relating to the Collateral shall extend to and be
available in respect of any Secured Obligation arising under any Hedging
Contract or Cash Management Obligation or that is otherwise owed to Persons
other than the Administrative Agent, the Lenders and the Issuers (collectively,
“Related 

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Obligations”)
solely on the condition and understanding, as among the Administrative Agent
and all Secured Parties, that (a) the Related Obligations shall be
entitled to the benefit of the Loan Documents and the Collateral to the extent
expressly set forth in this Agreement and the other Loan Documents and to such
extent the Administrative Agent shall hold, and have the right and power to act
with respect to, the Guaranty and the Collateral on behalf of and as agent for
the holders of the Related Obligations, but the Administrative Agent is
otherwise acting solely as agent for the Lenders and the Issuers and shall have
no fiduciary duty, duty of loyalty, duty of care, duty of disclosure or other
obligation whatsoever to any holder of Related Obligations, (b) all
matters, acts and omissions relating in any manner to the Guaranty, the
Collateral, or the omission, creation, perfection, priority, abandonment or
release of any Lien, shall be governed solely by the provisions of this
Agreement and the other Loan Documents and no separate Lien, right, power or
remedy shall arise or exist in favor of any Secured Party under any separate
instrument or agreement or in respect of any Related Obligation, (c) each
Secured Party shall be bound by all actions taken or omitted, in accordance
with the provisions of this Agreement and the other Loan Documents, by the
Administrative Agent and the Requisite Lenders, each of whom shall be entitled
to act at its sole discretion and exclusively in its own interest given its own
Revolving Credit Commitments and its own interest in the Loans, Letter of
Credit Obligations and other Obligations to it arising under this Agreement or
the other Loan Documents, without any duty or liability to any other Secured
Party or as to any Related Obligation and without regard to whether any Related
Obligation remains outstanding or is deprived of the benefit of the Collateral
or becomes unsecured or is otherwise affected or put in jeopardy thereby,
(d) no holder of Related Obligations and no other Secured Party (except
the Administrative Agent, the Lenders and the Issuers, to the extent set forth
in this Agreement) shall have any right to be notified of, or to direct,
require or be heard with respect to, any action taken or omitted in respect of
the Collateral or under this Agreement or the Loan Documents and (e) no
holder of any Related Obligation shall exercise any right of setoff, banker’s
lien or similar right except to the extent provided in Section 11.6
(Right of Set-off) and then only to the extent such right is
exercised in compliance with Section 11.7 (Sharing
of Payments, Etc.).

Article XI

Miscellaneous

Section 11.1         Amendments, Waivers, Etc.

(a)           No amendment or
waiver of any provision of this Agreement or any other Loan Document (other
than the Fee Letter, the Deposit Account Control Agreements, the Securities
Account Control Agreements, the Hedging Contracts, the Letter of Credit
Reimbursement Agreements and the Cash Management Documents) nor consent to any
departure by any Loan Party therefrom shall in any event be effective unless
the same shall be in writing and (x) in the case of any such waiver or
consent signed by the Requisite Lenders (or by the Administrative Agent with
the consent of the Requisite Lenders), (y) in the case of any amendment to the
definition of the term “Borrowing Base”
and related provisions of this Agreement for the purposes of including in the
Borrowing Base (and such assets and properties becoming part of the
Collateral), (1) eligible inventory, equipment and/or machinery, signed by the
Administrative Agent and the Super-Majority Lenders (or by the Administrative
Agent with the consent of the Super-Majority Lenders) and (2) in the case of
any other asset or property, signed by the Administrative Agent and each Lender
(or by the Administrative Agent with the consent of each Lender) and
(z) in the case of any other amendment, by the Requisite Lenders (or 

 92
 

by the
Administrative Agent with the consent of the Requisite Lenders ) and the
Borrower, and then any such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided, however, that
no amendment, waiver or consent shall, unless in writing and signed by each
Lender directly affected thereby, in addition to the Requisite Lenders (or the
Administrative Agent with the consent thereof), do any of the following:

(i)            waive
any condition specified in Section 3.1
(Conditions Precedent to Initial Loans and Letters of Credit) or 3.2(b) (Conditions Precedent to Each Loan and Letter of Credit),
except with respect to a condition based upon another provision hereof, the
waiver of which requires only the concurrence of the Requisite Lenders and, in
the case of the conditions specified in Section 3.1
(Conditions Precedent to Initial Loans and Letters of Credit),
subject to the provisions of Section 3.3
(Determinations of Initial Borrowing Conditions);

(ii)           increase
the Revolving Credit Commitment of such Lender or subject such Lender to any
additional obligation;

(iii)          extend
the scheduled final maturity of any Loan owing to such Lender, or waive, reduce
or postpone any scheduled date fixed for the payment or reduction of principal
or interest of any such Loan or fees owing to such Lender (it being understood
that Section 2.9 (Mandatory Prepayments)
does not provide for scheduled dates fixed for payment) or for the reduction of
such Lender’s Revolving Credit Commitment;

(iv)          reduce,
or release the Borrower from its obligations to repay, the principal amount of
any Loan or Reimbursement Obligation owing to such Lender (other than by the
payment or prepayment thereof);

(v)           reduce
the rate of interest on any Loan or Reimbursement Obligation outstanding and
owing to such Lender or any fee payable hereunder to such Lender;

(vi)          expressly
subordinate any of the Secured Obligations or any Liens securing the Secured
Obligations;

(vii)         postpone
any scheduled date fixed for payment of interest or fees owing to such Lender
or waive any such payment;

(viii)        change
the aggregate Ratable Portions of Lenders required for any or all Lenders to
take any action hereunder;

(ix)           release
all or substantially all of the Collateral except as provided in Section 10.8(b) (Concerning the Collateral and the Collateral
Documents) or release the Borrower from its payment obligation to
such Lender under this Agreement or the Revolving Credit Notes owing to such
Lender (if any) or release any Guarantor from its obligations under the
Guaranty except in connection with the sale or other disposition of a Guarantor
(or all or substantially all of the assets thereof) permitted by this Agreement
(or permitted pursuant to a waiver or consent of a transaction otherwise
prohibited by this Agreement);

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(x)            increase
any of the percentages set forth in the definition of “Advance Rate” above the
maximum percentages stated in such definitions on the date hereof; or

(xi)           amend
Section 10.8(b) (Concerning the Collateral and
the Collateral Documents), Section 11.7 (Sharing
of Payments, Etc.), this Section 11.1 or
definition of any of the terms “Ratable Portion”,
“Requisite Lenders” or “Super-Majority Lenders”;

and provided, further, that (x) no amendment, waiver or consent
shall, unless in writing and signed by any Special Purpose Vehicle that has
been granted an option pursuant to Section 11.2(e)
(Assignments and Participations), affect
the grant or nature of such option or the right or duties of such Special Purpose
Vehicle hereunder, (y) no amendment, waiver or consent shall, unless in
writing and signed by the Administrative Agent in addition to the Lenders
required above to take such action, affect the rights or duties of the
Administrative Agent under this Agreement or the other Loan Documents and
(z) no amendment, waiver or consent shall, unless in writing and signed by
the Swing Loan Lender in addition to the Lenders required above to take such
action, affect the rights or duties of the Swing Loan Lender under this
Agreement or the other Loan Documents; and provided,
further, that the Administrative
Agent may, with the consent of the Borrower, amend, modify or supplement this
Agreement to cure any ambiguity, omission, defect or inconsistency, so long as
such amendment, modification or supplement does not adversely affect the rights
of any Lender or any Issuer, and provided, further, that the Borrower and the Administrative Agent may
enter into any amendment necessary to implement the terms of a Revolving Credit
Commitment Increase in accordance with the terms of this Agreement without the
consent of any Lender.

(b)           The Administrative
Agent may, but shall have no obligation to, with the written concurrence of any
Lender, execute amendments, modifications, waivers or consents on behalf of
such Lender.  Any waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which it was given.  No notice to or
demand on the Borrower in any case shall entitle the Borrower to any other or
further notice or demand in similar or other circumstances.

(c)           If, in connection
with any proposed amendment, modification, waiver or termination requiring the
consent of all affected Lenders, the consent of Requisite Lenders is obtained
but the consent of other Revolving Credit Lenders whose consent is required is
not obtained (any such Revolving Credit Lender whose consent is not obtained as
described in this Section 11.1 being referred
to as a “Non-Consenting Lender”), then, as long
as the Revolving Credit Lender acting as the Administrative Agent is not a
Non-Consenting Lender, at the Borrower’s request, any Eligible Assignee
acceptable to the Administrative Agent shall have the right with the
Administrative Agent’s consent and in the Administrative Agent’s sole
discretion (but shall have no obligation) to purchase from such Non-Consenting
Lender, and such Non-Consenting Lender agrees that it shall, upon the
Administrative Agent’s request, sell and assign to the Revolving Credit Lender
acting as the Administrative Agent or such Eligible Assignee, all of the
Revolving Credit Commitments, and Revolving Credit Outstandings of such
Non-Consenting Lender for an amount equal to the principal balance of all Loans
held by the Non-Consenting Lender and all accrued and unpaid interest and fees
with respect thereto through the date of sale; provided,
however, that such purchase and sale
shall be recorded in the Register maintained by the Administrative Agent and
shall not be effective until (x) the Administrative Agent shall have
received from such Eligible Assignee an agreement in form and substance
satisfactory to the 

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Administrative
Agent and the Borrower whereby such Eligible Assignee shall agree to be bound
by the terms hereof and (y) such Non-Consenting Lender shall have received
payments of all Loans held by it and all accrued and unpaid interest and fees
with respect thereto through the date of the sale.  Each Revolving Credit Lender agrees that, if
it becomes a Non-Consenting Lender, it shall execute and deliver to the
Administrative Agent an Assignment an Acceptance to evidence such sale and
purchase and shall deliver to the Administrative Agent any Revolving Credit
Note (if the assigning Revolving Credit Lender’s Loans are evidenced by a
Revolving Credit Note) subject to such Assignment and Acceptance; provided, however, that
the failure of any Non-Consenting Lender to execute an Assignment and
Acceptance shall not render such sale and purchase (and the corresponding
assignment) invalid and such assignment shall be recorded in the Register.

Section 11.2         Assignments and Participations

(a)           Each Revolving
Credit Lender may sell, transfer, negotiate or assign to one or more Eligible
Assignees all or a portion of its rights and obligations hereunder (including
all of its rights and obligations with respect to the Revolving Loans, the
Swing Loans and the Letters of Credit); provided, however, that (i) if any such assignment shall be of
the assigning Revolving Credit Lender’s Revolving Credit Outstandings and
Revolving Credit Commitments, such assignment shall cover the same percentage
of such Revolving Credit Lender’s Revolving Credit Outstandings and Revolving
Credit Commitments, (ii) the aggregate amount being assigned pursuant to
each such assignment (determined as of the date of the Assignment and
Acceptance with respect to such assignment) shall in no event (if less than the
assignor’s entire interest) be less than $5,000,000 or an integral multiple of
$1,000,000 in excess thereof, except, in either case, (A) with the consent
of the Borrower and the Administrative Agent or (B) if such assignment is
being made to a Lender or an Affiliate or Approved Fund of such Lender and
(iii) if such Eligible Assignee is not, prior to the date of such
assignment, a Lender or an Affiliate or Approved Fund of a Lender, such
assignment shall be subject to the prior consent of the Administrative Agent
and the Borrower (which consent of the Borrower shall not be unreasonably
withheld or delayed); and provided, further, that, notwithstanding any other provision of this Section 11.2, the consent of the Borrower shall not be
required for any assignment occurring when any Event of Default shall have
occurred and be continuing.

(b)           The parties to each
such assignment shall execute and deliver to the Administrative Agent, for its
acceptance and recording in the Register, an Assignment and Acceptance,
together with any Revolving Credit Note (if the assigning Revolving Credit
Lender’s Loans are evidenced by a Revolving Credit Note) subject to such
assignment.  Upon the execution,
delivery, acceptance and recording in the Register of any Assignment and
Acceptance and, other than in respect of assignments made pursuant to Section 2.17 (Substitution of Lenders) and Section 11.1(c) (Amendments, Waivers,
Etc.), the receipt by the Administrative Agent from the assignee of
an assignment fee in the amount of $3,500 from and after the effective date
specified in such Assignment and Acceptance, (i) the assignee thereunder
shall become a party hereto and, to the extent that rights and obligations
under the Loan Documents have been assigned to such assignee pursuant to such
Assignment and Acceptance, have the rights and obligations of a Revolving
Credit Lender and, if such Revolving Credit Lender were an Issuer, of such
Issuer hereunder and thereunder, (ii) the Revolving Credit Notes (if any)
corresponding to the Loans assigned thereby shall be transferred to such
assignee by notation in the Register and (iii) the assignor thereunder
shall, to the extent that rights and obligations under this Agreement have been
assigned by it pursuant to such Assignment and Acceptance, relinquish its
rights 

 95
 

(except for
those surviving the payment in full of the Obligations) and be released from
its obligations under the Loan Documents, other than those relating to events
or circumstances occurring prior to such assignment (and, in the case of an
Assignment and Acceptance covering all or the remaining portion of an assigning
Revolving Credit Lender’s rights and obligations under the Loan Documents, such
Revolving Credit Lender shall cease to be a party hereto).

(c)           The Administrative
Agent shall maintain at its address referred to in Section 11.8
(Notices, Etc.) a copy of each Assignment and Acceptance delivered
to and accepted by it and shall record in the Register the names and addresses
of the Lenders and Issuers and the principal amount of the Loans and
Reimbursement Obligations owing to each Lender from time to time and the
Revolving Credit Commitments of each Lender. 
Any assignment pursuant to this Section 11.2
shall not be effective until such assignment is recorded in the Register.

(d)           Upon its receipt of
an Assignment and Acceptance executed by an assigning Revolving Credit Lender
and an assignee, the Administrative Agent shall, if such Assignment and
Acceptance has been completed, (i) accept such Assignment and Acceptance,
(ii) record or cause to be recorded the information contained therein in
the Register and (iii) give prompt notice thereof to the Borrower.  Within five Business Days after its receipt
of such notice, the Borrower, at its own expense, shall, if requested by such
assignee, execute and deliver to the Administrative Agent, new Revolving Credit
Notes to the order of such assignee in an amount equal to the Revolving Credit
Commitments assumed by it pursuant to such Assignment and Acceptance and, if
the assigning Revolving Credit Lender has surrendered any Revolving Credit Note
for exchange in connection with the assignment and has retained Revolving Credit
Commitments hereunder, new Revolving Credit Notes to the order of the assigning
Revolving Credit Lender in an amount equal to the Revolving Credit Commitments
retained by it hereunder.  Such new
Revolving Credit Notes shall be dated the same date as the surrendered
Revolving Credit Notes and be in substantially the form of Exhibit B
(Form of Revolving Credit Note).

(e)           In addition to the
other assignment rights provided in this Section 11.2,
each Revolving Credit Lender may do each of the following:

(i)            grant
to a Special Purpose Vehicle the option to make all or any part of any Loan
that such Revolving Credit Lender would otherwise be required to make hereunder
and the exercise of such option by any such Special Purpose Vehicle and the
making of Loans pursuant thereto shall satisfy (once and to the extent that
such Loans are made) the obligation of such Revolving Credit Lender to make
such Loans thereunder, provided, however, that (x) nothing herein shall constitute a
commitment or an offer to commit by such a Special Purpose Vehicle to make
Loans hereunder and no such Special Purpose Vehicle shall be liable for any
indemnity or other Obligation (other than the making of Loans for which such
Special Purpose Vehicle shall have exercised an option, and then only in
accordance with the relevant option agreement) and (y) such Lender’s
obligations under the Loan Documents shall remain unchanged, such Lender shall
remain responsible to the other parties for the performance of its obligations
under the terms of this Agreement and shall remain the holder of the
Obligations for all purposes hereunder; and

(ii)           assign,
as collateral or otherwise, any of its rights under this Agreement, whether now
owned or hereafter acquired (including rights to payments of principal or interest
on the Loans), to (A) without notice to or consent of the Administrative
Agent or the Borrower, any Federal Reserve Bank (pursuant to 

 96
 

Regulation A of the Federal Reserve Board) and (B) without consent
of the Administrative Agent or the Borrower, (1) any holder of, or trustee
for the benefit of, the holders of such Revolving Credit Lender’s Securities
and (2) any Special Purpose Vehicle to which such Revolving Credit Lender
has granted an option pursuant to clause (i) above;

provided, however,
that no such assignment or grant shall release such Revolving Credit Lender
from any of its obligations hereunder except as expressly provided in clause (i) above and except, in the case of a
subsequent foreclosure pursuant to an assignment as collateral, if such
foreclosure is made in compliance with the other provisions of this Section 11.2 other than this
clause (e) or clause (f) below.  Each party hereto acknowledges and agrees
that, prior to the date that is one year and one day after the payment in full of
all outstanding commercial paper or other senior debt of any such Special
Purpose Vehicle, such party shall not institute against, or join any other
Person in instituting against, any Special Purpose Vehicle that has been
granted an option pursuant to this clause (e) any
bankruptcy, reorganization, insolvency or liquidation proceeding (such
agreement shall survive the payment in full of the Obligations).  The terms of the designation of, or
assignment to, such Special Purpose Vehicle shall not restrict such Lender’s
ability to, or grant such Special Purpose Vehicle the right to, consent to any
amendment or waiver to this Agreement or any other Loan Document or to the
departure by the Borrower from any provision of this Agreement or any other
Loan Document without the consent of such Special Purpose Vehicle except, as
long as the Administrative Agent and the Lenders, Issuers and other Secured
Parties shall continue to, and shall be entitled to continue to, deal solely
and directly with such Lender in connection with such Lender’s obligations
under this Agreement, to the extent any such consent would reduce the principal
amount of, or the rate of interest on, any Obligations, amend this clause (e) or postpone any scheduled date of payment
of such principal or interest.  Each
Special Purpose Vehicle shall be entitled to the benefits of Sections 2.15 (Capital Adequacy) and 2.16 (Taxes) and of Section 2.14(d)
(Illegality) as if it were such Lender; provided, however, that anything herein to the contrary notwithstanding,
no Borrower shall, at any time, be obligated to makeunder
Section 2.15 (Capital Adequacy), 2.16 (Taxes) or 2.14(d) (Illegality) to
any such Special Purpose Vehicle and any such Lender any payment in excess of
the amount the Borrower would have been obligated to pay to such Lender in
respect of such interest if such Special Purpose Vehicle had not been assigned
the rights of such Lender hereunder; and provided, further, that such Special Purpose Vehicle shall have no
direct right to enforce any of the terms of this Agreement against the
Borrower, the Administrative Agent or the other Lenders.

(f)            Each Lender may
sell participations to one or more Persons in or to all or a portion of its
rights and obligations under the Loan Documents (including all its rights and
obligations with respect to the Revolving Loans and Letters of Credit).  The terms of such participation shall not, in
any event, require the participant’s consent to any amendments, waivers or
other modifications of any provision of any Loan Documents, the consent to any
departure by any Loan Party therefrom, or to the exercising or refraining from
exercising any powers or rights such Lender may have under or in respect of the
Loan Documents (including the right to enforce the obligations of the Loan
Parties), except if any such amendment, waiver or other modification or consent
would (i) reduce the amount, or postpone any date fixed for, any amount
(whether of principal, interest or fees) payable to such participant under the
Loan Documents, to which such participant would otherwise be entitled under
such participation or (ii) result in the release of all or substantially
all of the Collateral other than in accordance with Section 10.8(b)
(Concerning the Collateral and the Collateral Documents).  In the event of the sale of any participation
by any 

 97
 

Lender,
(w) such Lender’s obligations under the Loan Documents shall remain
unchanged, (x) such Lender shall remain solely responsible to the other
parties for the performance of such obligations, (y) such Lender shall
remain the holder of such Obligations for all purposes of this Agreement and
(z) the Borrower, the Administrative Agent and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement.

(g)           Any Issuer may at
any time assign its rights and obligations hereunder to any other Lender by an
instrument in form and substance satisfactory to the Borrower, the
Administrative Agent, such Issuer and such Lender, subject to the provisions of
Section 2.7(c) (Evidence of Debt) relating to notations of transfer in the
Register.  If any Issuer ceases to be a
Lender hereunder by virtue of any assignment made pursuant to this Section 11.2, then, as of the effective date of such
cessation, such Issuer’s obligations to Issue Letters of Credit pursuant to Section 2.4 (Letters of Credit) shall terminate and
such Issuer shall be an Issuer hereunder only with respect to outstanding
Letters of Credit issued prior to such date.

Section 11.3         Costs and Expenses

(a)           The Borrower agrees
upon demand to pay, or reimburse the Administrative Agent and each Arranger
for, all of the Administrative Agent’s or such Arranger’s, as the case may be,
reasonable internal and external audit, legal, appraisal, valuation, filing,
document duplication and reproduction and investigation expenses and for all
other reasonable out-of-pocket costs and expenses of every type and nature
(including, without limitation, the reasonable fees, expenses and disbursements
of the Administrative Agent’s counsel, Weil, Gotshal & Manges LLP, local
legal counsel, auditors, accountants, appraisers, field examiners, printers,
insurance and environmental advisors, and other consultants and agents)
incurred by the Administrative Agent in connection with any of the following:
(i) the Administrative Agent’s audit and investigation of the Group
Members in connection with the preparation, negotiation or execution of any
Loan Document or the Administrative Agent’s periodic audits of the Group
Members, as the case may be, (ii) the preparation, negotiation, execution
or interpretation of this Agreement (including, without limitation, the
satisfaction or attempted satisfaction of any condition set forth in Article III (Conditions to Loans and Letters of Credit),
any Loan Document or any proposal letter or commitment letter issued in
connection therewith, or the making of the Loans hereunder, (iii) the
creation, perfection or protection of the Liens under any Loan Document (including
any reasonable fees, disbursements and expenses for local counsel in various
jurisdictions), (iv) the ongoing administration of this Agreement and the
Loans, including consultation with attorneys in connection therewith and with
respect to the Administrative Agent’s rights and responsibilities hereunder and
under the other Loan Documents, (v) the protection, collection or
enforcement of any Obligation or the enforcement of any Loan Document,
(vi) the commencement, defense or intervention in any court proceeding
relating in any way to the Obligations, any Loan Party, any of the Borrower’s
Subsidiaries, the Related Documents, this Agreement or any other Loan Document,
(vii) the response to, and preparation for, any subpoena or request for
document production with which the Administrative Agent is served or deposition
or other proceeding in which the Administrative Agent is called to testify, in
each case, relating in any way to the Obligations, any Loan Party, any of the
Borrower’s Subsidiaries, the Related Documents, this Agreement or any other
Loan Document or (viii) any amendment, consent, waiver, assignment,
restatement, or supplement to any Loan Document or the preparation, negotiation
and execution of the same.  The foregoing
notwithstanding, unless an Event of Default shall have occurred and be
continuing, the Borrower 

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shall only be
obligated to reimburse the Administrative Agent and Lenders for two audits
and/or appraisals in any Fiscal Year.

(b)           The Borrower further
agrees to pay or reimburse the Administrative Agent and each of the Lenders and
Issuers upon demand for all out-of-pocket costs and expenses, including
reasonable attorneys’ fees (including allocated costs of internal counsel and
costs of settlement), incurred by the Administrative Agent, such Lenders or
such Issuers in connection with any of the following: (i) in enforcing any
Loan Document or Obligation or any security therefor or exercising or enforcing
any other right or remedy available by reason of an Event of Default, (ii) in
connection with any refinancing or restructuring of the credit arrangements
provided hereunder in the nature of a “work-out” or in any insolvency or
bankruptcy proceeding, (iii) in commencing, defending or intervening in
any litigation or in filing a petition, complaint, answer, motion or other
pleadings in any legal proceeding relating to the Obligations, any Loan Party,
any of the Borrower’s Subsidiaries and related to or arising out of the
transactions contemplated hereby or by any other Loan Document or Related
Document or (iv) in taking any other action in or with respect to any suit
or proceeding (bankruptcy or otherwise) described in clause (i),
(ii) or (iii)
above.

Section 11.4         Indemnities

(a)           The Borrower agrees
to indemnify and hold harmless the Administrative Agent, each Arranger, each
Lender and each Issuer (including each Person obligated on a Hedging Contract
that is a Loan Document if such Person was a Lender or Issuer at the time of it
entered into such Hedging Contract) and each of their respective Affiliates,
and each of the directors, officers, employees, agents, trustees,
representatives, attorneys, consultants and advisors of or to any of the
foregoing (including those retained in connection with the satisfaction or
attempted satisfaction of any condition set forth in Article III
(Conditions to Loans and Letters of Credit) (each such Person being
an “Indemnitee”) from and against any and
all claims, damages, liabilities, obligations, losses, penalties, actions,
judgments, suits, costs, disbursements and expenses, joint or several, of any
kind or nature (including reasonable fees, disbursements and expenses of
financial and legal advisors to any such Indemnitee) that may be imposed on,
incurred by or asserted against any such Indemnitee in connection with or
arising out of any investigation, litigation or proceeding, whether or not such
investigation, litigation or proceeding is brought by any such Indemnitee or
any of its directors, security holders or creditors or any such Indemnitee,
director, security holder or creditor is a party thereto, whether direct,
indirect, or consequential and whether based on any federal, state or local law
or other statutory regulation, securities or commercial law or regulation, or
under common law or in equity, or on contract, tort or otherwise, in any manner
relating to or arising out of this Agreement, any other Loan Document, any
Obligation, any Letter of Credit, any Related Document, or any act, event or
transaction related or attendant to any thereof, or the use or intended use of
the proceeds of the Loans or Letters of Credit or in connection with any
investigation of any potential matter covered hereby (collectively, the “Indemnified Matters”); provided, however, that the Borrower shall not have any liability
under this Section 11.4 to an Indemnitee with
respect to any Indemnified Matter that has resulted primarily from the gross
negligence or willful misconduct of that Indemnitee, as determined by a court
of competent jurisdiction in a final non-appealable judgment or order.  Without limiting the foregoing, “Indemnified Matters” include (i) all Environmental
Liabilities and Costs arising from or connected with the past, present or
future operations of any Group Member involving any property subject to a
Collateral Document, or damage to real or personal property or natural
resources or harm or injury alleged to have resulted from any Release of 

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Contaminants
on, upon or into such property or any contiguous real estate, (ii) any
costs or liabilities incurred in connection with any Remedial Action concerning
any Group Member, (iii) any costs or liabilities incurred in connection
with any Environmental Lien and (iv) any costs or liabilities incurred in
connection with any other matter under any Environmental Law, including the
Comprehensive Environmental Response, Compensation and Liability Act of 1980
(49 U.S.C. § 9601 et seq.) and
applicable state property transfer laws, whether, with respect to any such
matter, such Indemnitee is a mortgagee pursuant to any leasehold mortgage, a
mortgagee in possession, the successor in interest to any Group Member, or the
owner, lessee or operator of any property of any Group Member by virtue of
foreclosure, except, with respect to those matters referred to in clauses (i), (ii), (iii) and (iv) above, to
the extent (x) incurred following foreclosure by the Administrative Agent,
either Arranger, any Lender or any Issuer, or the Administrative Agent, the
Arrangers, any Lender or any Issuer having become the successor in interest to the
any Group Member and (y) attributable solely to acts of the Administrative
Agent, such Arranger, such Lender or such Issuer or any agent on behalf of the
Administrative Agent, such Arranger, such Lender or such Issuer.

(b)           The Borrower shall
indemnify the Administrative Agent, each Arranger, the Lenders and each Issuer
for, and hold the Administrative Agent, the Lenders and each Issuer harmless
from and against, any and all claims for brokerage commissions, fees and other
compensation made against the Administrative Agent, the Arrangers, the Lenders
and the Issuers for any broker, finder or consultant with respect to any
agreement, arrangement or understanding made by or on behalf of any Loan Party
or any of its Subsidiaries in connection with the transactions contemplated by
this Agreement.

(c)           The Borrower, at the
request of any Indemnitee, shall have the obligation to defend against any
investigation, litigation or proceeding or requested Remedial Action, in each
case contemplated in clause (a) above,
and the Borrower, in any event, may participate in the defense thereof with
legal counsel of the Borrower’s choice. 
In the event that such Indemnitee requests the Borrower to defend
against such investigation, litigation or proceeding or requested Remedial
Action, the Borrower shall promptly do so and such Indemnitee shall have the
right to have legal counsel of its choice participate in such defense.  No action taken by legal counsel chosen by
such Indemnitee in defending against any such investigation, litigation or
proceeding or requested Remedial Action, shall vitiate or in any way impair the
Borrower’s obligation and duty hereunder to indemnify and hold harmless such
Indemnitee.

(d)           The Borrower agrees
that any indemnification or other protection provided to any Indemnitee
pursuant to this Agreement (including pursuant to this Section 11.4)
or any other Loan Document shall (i) survive payment in full of the
Obligations and (ii) inure to the benefit of any Person that was at any
time an Indemnitee under this Agreement or any other Loan Document.

Section 11.5         Limitation of Liability

(a)           The Borrower agrees
that no Indemnitee shall have any liability (whether in contract, tort or
otherwise) to any Loan Party or any of their respective Subsidiaries or any of
their respective equity holders or creditors for or in connection with the
transactions contemplated hereby and in the other Loan Documents and Related
Documents, except to the extent such liability is determined in a final
non-appealable judgment by a court of competent jurisdiction to have resulted
primarily from such Indemnitee’s gross negligence or willful misconduct.  In no event,
however, shall any Indemnitee be liable on any theory of liability for any
special, indirect,

 100

consequential
or punitive damages (including, without limitation, any loss of profits,
business or anticipated savings).  The
Borrower hereby waives, releases and agrees (each for itself and on behalf of
its Subsidiaries) not to sue upon any such claim for any special, indirect,
consequential or punitive damages, whether or not accrued and whether or not
known or suspected to exist in its favor.

(b)           In no event shall any Agent Affiliate have any
liability to any Loan Party, Lender, Issuer or any other Person for damages of
any kind, including direct or indirect, special, incidental or consequential
damages, losses or expenses (whether in tort or contract or otherwise) arising
out of any Loan Party or any Agent Affiliate’s transmission of Approved
Electronic Communications through the Internet or any use of the Approved
Electronic Platform, except to the extent such liability of any Agent Affiliate
is found in a final non-appealable judgment by a court of competent
jurisdiction to have resulted primarily form such Agent Affiliate’s gross
negligence or willful misconduct.

Section 11.6         Right of Set-off

Upon the occurrence and during the continuance of any
Event of Default and so long as the Requisite Lenders have requested that the
Administrative Agent declare the Obligations to be immediately due and payable
pursuant to Section 9.2, or the Obligations have
become immediately due and payable without notice pursuant to Section 9.2, then each Lender and each Affiliate of a Lender
is hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
Indebtedness at any time owing by such Lender or its Affiliates to or for the
credit or the account of any Group Member against any and all of the
Obligations now or hereafter existing whether or not such Lender shall have
made any demand under this Agreement or any other Loan Document and even though
such Obligations may be unmatured.  Each
Lender agrees promptly to notify the Borrower after any such set-off and
application made by such Lender or its Affiliates; provided, however, that the failure to give such notice shall not
affect the validity of such set-off and application.  The rights of each Lender under this Section 11.6 are in addition to the other rights and
remedies (including other rights of set-off) that such Lender may have.

Section 11.7         Sharing of Payments, Etc.

(a)           If any Revolving
Credit Lender (directly or through an Affiliate thereof) obtains any payment
(whether voluntary, involuntary, through the exercise of any right of set-off
(including pursuant to Section 11.6
(Right of Set-off)) or otherwise) of the
Loans owing to it, any interest thereon, fees in respect thereof or amounts due
pursuant to Section 11.3 (Costs and Expenses) or
11.4 (Indemnities) (other than
payments pursuant to Section 2.14 (Special
Provisions Governing Eurodollar Rate Loans),
2.15 (Capital Adequacy) or 2.16 (Taxes))
or otherwise receives any Collateral or any “Proceeds” (as defined in the
Security Agreement) of Collateral (other than payments pursuant to Section 2.14 (Special Provisions Governing Eurodollar Rate Loans), 2.15 (Capital Adequacy) or 2.16 (Taxes))
(in each case, whether voluntary, involuntary, through the exercise of any
right of set-off (including pursuant to Section 11.6 (Right
of Set-off)) or otherwise) in excess of its Ratable Portion of all
payments of such Obligations obtained by all the Revolving Credit Lenders, such
Revolving Credit Lender (a “Purchasing Lender”)
shall forthwith purchase from the other Lenders (each, a “Selling
Lender”) 

 101
 

such
participations in their Loans or other Obligations as shall be necessary to
cause such Purchasing Lender to share the excess payment ratably with each of
them.

(b)           If all or any
portion of any payment received by a Purchasing Lender is thereafter recovered
from such Purchasing Lender, such purchase from each Selling Lender shall be
rescinded and such Selling Lender shall repay to the Purchasing Lender the
purchase price to the extent of such recovery together with an amount equal to
such Selling Lender’s ratable share (according to the proportion of
(i) the amount of such Selling Lender’s required repayment in relation to
(ii) the total amount so recovered from the Purchasing Lender) of any
interest or other amount paid or payable by the Purchasing Lender in respect of
the total amount so recovered.

(c)           The Borrower agrees
that any Purchasing Lender so purchasing a participation from a Selling Lender
pursuant to this Section 11.7 may, to the
fullest extent permitted by law, exercise all its rights of payment (including
the right of set-off) with respect to such participation as fully as if such
Lender were the direct creditor of the Borrower in the amount of such
participation.

Section 11.8         Notices, Etc.

(a)           Addresses
for Notices.  All notices,
demands, requests, consents and other communications provided for in this
Agreement shall be given in writing, or by any telecommunication device capable
of creating a written record (including electronic mail), and addressed to the
party to be notified as follows:

(i)            if to the Borrower:

TENET
HEALTHCARE CORPORATION

13737 Noel Road

Dallas, Texas  75240

Attention: Chief Financial Officer

Telecopy no: (469) 893-2707

E-Mail Address:
biggs.porter@tenethealth.com

Attention: Treasurer

Telecopy no: (469) 893-2364

E-Mail Address:
jeff.sherman@tenethealth.com

Attention:              General
Counsel

Telecopy no:         (469) 893-2654
E-Mail Address: peter.urbanowicz@tenethealth.com

with a copy to:

GIBSON, DUNN & CRUTCHER
LLP

2029 Century Park East

Los Angeles, California 90067-3026

Attention: Brian D. Kilb

 102
 

Telecopy no:         (310) 551-8871

E-Mail Address: Bkilb@gibsondunn.com

(ii)           if
to any Revolving Credit Lender, at its Domestic Lending Office specified
opposite its name on Schedule II
(Applicable Lending Offices and Addresses for Notices) or on the
signature page of any applicable Assignment and Acceptance;

(iii)          if
to any Issuer, at the address set forth under its name on Schedule II
(Applicable Lending Offices and Addresses for Notices); and

(iv)          if
to the Administrative Agent or the Swing Loan Lender:

CITICORP USA, INC.

388 Greenwich Street, 20th Floor

New York, New York 10013

Attention: William M. Washburn

Telecopy no:  (212) 816-2613

E-Mail Address: 
william.washburn@citigroup.com

with a copy to:

WEIL, GOTSHAL & MANGES LLP

767 Fifth Avenue,

New York, New York 10153-0119

Attention: Daniel S. Dokos

Telecopy no:         (212) 310-8007

E-Mail Address: Daniel.dokos@weil.com

or at such other address as shall be notified in
writing (x) in the case of the Borrower, the Administrative Agent and the
Swing Loan Lender, to the other parties and (y) in the case of all other
parties, to the Borrower and the Administrative Agent.

(b)           Effectiveness
of Notices.  All notices,
demands, requests, consents and other communications described in clause (a) above shall be effective (i) if
delivered by hand, including any overnight courier service, upon personal
delivery, (ii) if delivered by mail, when deposited in the mails,
(iii) if delivered by posting to an Approved Electronic Platform, an
Internet website or a similar telecommunication device requiring that a user
have prior access to such Approved Electronic Platform, website or other device
(to the extent permitted by Section 10.3
(Posting of Approved Electronic Communications) to
be delivered thereunder), when such notice, demand, request, consent and other
communication shall have been made generally available on such Approved
Electronic Platform, Internet website or similar device to the class of Person
being notified (regardless of whether any such Person must accomplish, and
whether or not any such Person shall have accomplished, any action prior to
obtaining access to such items, including registration, disclosure of contact
information, compliance with a standard user agreement or undertaking a duty of
confidentiality) and such Person has been notified that such communication has
been posted to the Approved Electronic Platform and (iv) if delivered by
electronic mail or any other telecommunications device, when transmitted to an
electronic mail address (or by another means of electronic delivery) as
provided in clause (a) above; provided, however, that
notices and communications to the Administrative Agent pursuant to Article II (The 

 103
 

Facility) or Article X
(The Administrative Agent) shall not be
effective until received by the Administrative Agent.

(c)           Use of
Electronic Platform. 
Notwithstanding clauses (a)
and (b) above (unless the Administrative
Agent requests that the provisions of clause (a)
and (b) above be followed) and any other
provision in this Agreement or any other Loan Document providing for the
delivery of any Approved Electronic Communication by any other means the Loan
Parties shall deliver all Approved Electronic Communications to the
Administrative Agent by properly transmitting such Approved Electronic
Communications in an electronic/soft medium in a format acceptable to the
Administrative Agent to oploanswebadmin@citigroup.com or such other electronic
mail address (or similar means of electronic delivery) as the Administrative
Agent may notify the Borrower.  Nothing
in this clause (c) shall prejudice the
right of the Administrative Agent or any Lender or Issuer to deliver any Approved
Electronic Communication to any Loan Party in any manner authorized in this
Agreement or to request that the Borrower effect delivery in such manner.

Section 11.9         No Waiver; Remedies

No failure on the part of any Lender, Issuer or the
Administrative Agent to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or
the exercise of any other right.  The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

Section 11.10       Binding Effect

This Agreement shall become effective when it shall
have been executed by the Borrower and the Administrative Agent and when the
Administrative Agent shall have been notified by each Lender and Issuer that
such Lender or Issuer has executed it and thereafter shall be binding upon and
inure solely to the benefit of the Borrower, the Administrative Agent and each
Lender and Issuer and, in each case, their respective successors and assigns; provided, however, that
the Borrower shall not have the right to assign its rights hereunder or any
interest herein without the prior written consent of the Lenders.

Section 11.11       Governing Law

This Agreement and the rights and obligations of the
parties hereto shall be governed by, and construed and interpreted in
accordance with, the law of the State of New York.

Section 11.12       Submission to Jurisdiction; Service of
Process

(a)           Any legal action or
proceeding with respect to this Agreement or any other Loan Document may be
brought in the courts of the State of New York located in the City of New York
or of the United States of America for the Southern District of New York, and,
by execution and delivery of this Agreement, the Borrower hereby accepts for
itself and in respect of its property, generally and unconditionally, the
jurisdiction of the aforesaid courts. 
The parties hereto hereby irrevocably waive any objection, including any
objection to the laying of venue or based on the grounds of forum non conveniens, that any of them may now or hereafter have to
the bringing of any such action or proceeding in such respective jurisdictions.

 104
 

(b)           The Borrower hereby
irrevocably consents to the service of any and all legal process, summons,
notices and documents in any suit, action or proceeding brought in the United
States of America arising out of or in connection with this Agreement or any
other Loan Document by the mailing (by registered or certified mail, postage prepaid)
or delivering of a copy of such process to the Borrower at its address
specified in Section 11.8 (Notices, Etc.).  The Borrower agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

(c)           Nothing contained in
this Section 11.12 shall affect the
right of the Administrative Agent or any Lender to serve process in any other
manner permitted by law or commence legal proceedings or otherwise proceed
against the Borrower or any other Loan Party in any other jurisdiction.

(d)           If for the purposes
of obtaining judgment in any court it is necessary to convert a sum due
hereunder in Dollars into another currency, the parties hereto agree, to the
fullest extent that they may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase Dollars with such other currency at the
spot rate of exchange quoted by the Administrative Agent at 11:00 a.m. (New
York time) on the Business Day preceding that on which final judgment is given,
for the purchase of Dollars, for delivery two Business Days thereafter.

Section 11.13       Waiver
of Jury Trial

Each of the Administrative
Agent, the Lenders, the Issuers and the Borrower irrevocably waives trial by
jury in any action or proceeding with respect to this Agreement or any other
Loan Document.

Section 11.14       Marshaling; Payments Set Aside

None of the Administrative Agent, any Lender or any
Issuer shall be under any obligation to marshal any assets in favor of the
Borrower or any other party or against or in payment of any or all of the
Obligations.  To the extent that the Borrower
makes a payment or payments to the Administrative Agent, the Lenders or the
Issuers or any such Person receives payment from the proceeds of the Collateral
or exercise their rights of setoff, and such payment or payments or the
proceeds of such enforcement or setoff or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
to be repaid to a trustee, receiver or any other party, then to the extent of
such recovery, the obligation or part thereof originally intended to be
satisfied, and all Liens, right and remedies therefor, shall be revived and
continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred.

Section 11.15       Section Titles

The section titles contained in this Agreement are and
shall be without substantive meaning or content of any kind whatsoever and are
not a part of the agreement between the parties hereto, except when used to
reference a section.  Any reference to
the number of a clause, sub-clause or subsection hereof immediately followed by
a reference in parenthesis to the title of the Section containing such clause,
sub-clause or subsection is a reference to such clause, sub-clause or
subsection and not to the entire Section; provided, however, that, in case of 

 105
 

direct conflict between the reference to the title and
the reference to the number of such Section, the reference to the title shall
govern absent manifest error.  If any
reference to the number of a Section (but not to any clause, sub-clause or
subsection thereof) is followed immediately by a reference in parenthesis to
the title of a Section, the title reference shall govern in case of direct
conflict absent manifest error.

Section 11.16       Execution in Counterparts

This Agreement may be executed in any number of
counterparts and by different parties in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.  Signature pages may be detached from multiple
separate counterparts and attached to a single counterpart so that all
signature pages are attached to the same document.  Delivery of an executed signature page of
this Agreement by facsimile transmission, electronic mail or by posting on the
Approved Electronic Platform shall be as effective as delivery of a manually
executed counterpart hereof.  A set of
the copies of this Agreement signed by all parties shall be lodged with the
Borrower and the Administrative Agent.

Section 11.17       Entire Agreement

This Agreement, together with all of the other Loan
Documents and all certificates and documents delivered hereunder or thereunder,
embodies the entire agreement of the parties and supersedes all prior
agreements and understandings relating to the subject matter hereof.  In the event of any conflict between the
terms of this Agreement and any other Loan Document, the terms of this
Agreement shall govern.

Section 11.18       Confidentiality

Each Lender and the Administrative Agent agree to use
all reasonable efforts to keep information obtained by it pursuant hereto and
the other Loan Documents confidential in accordance with such Lender’s or the
Administrative Agent’s, as the case may be, customary practices and agrees that
it shall not disclose any such information other than (a) to such Lender’s
or the Administrative Agent’s, as the case may be, employees, representatives
and agents that are or are expected to be involved in the evaluation of such
information in connection with the transactions contemplated by this Agreement
and are advised of the confidential nature of such information, (b) to the
extent such information presently is or hereafter becomes available to such
Lender or the Administrative Agent, as the case may be, on a non-confidential
basis from a source other than the Borrower or any other Loan Party,
(c) to the extent disclosure is required by law, regulation or judicial
order or requested or required by bank regulators or auditors or (d) to
current or prospective assignees, participants and Special Purpose Vehicle
grantees of any option described in Section 11.2(e)
(Assignments and Participations), contractual counterparties in any
Hedging Contract permitted hereunder and to their respective legal or financial
advisors, in each case and to the extent such assignees, participants, grantees
or counterparties agree to be bound by, and to cause their advisors to comply
with, the provisions of this Section 11.18.  Notwithstanding any other provision in this
Agreement, the Administrative Agent hereby agrees that the Borrower (and each
of its officers, directors, employees, accountants, attorneys and other
advisors) may disclose to any and all persons, without limitation of any kind,
the U.S. tax treatment and U.S. tax structure of the Facility and the transactions
contemplated hereby and all materials of any kind (including opinions and other
tax analyses) that are provided to it relating to such U.S. tax treatment and
U.S. tax structure.

 106
 

Section 11.19       Patriot Act Notice

Each Lender subject to the Patriot Act hereby notifies
the Borrower that, pursuant to Section 326 of the Patriot Act, it is required
to obtain, verify and record information that identifies the Borrower,
including the name and address of the Borrower and other information that will
allow such Lender to identify the Borrower in accordance with the Patriot Act.

[Signature Pages
Follow]

 107

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written.

	
  

  	
  TENET HEALTHCARE CORPORATION,

  
	
   

  	
   

  	
  as Borrower

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Sherman

  
	
   

  	
   

  	
  Name: Jeffrey Sherman

  	
   

  	
   

  
	
   

  	
   

  	
  Title: Treasurer

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

	
  

  	
  CITICORP USA, INC.,

  
	
   

  	
   

  	
  as Administrative Agent, Swing Loan Lender and
  Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  William
  Washburn

  
	
   

  	
   

  	
  Name:  William
  Washburn

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   
  Director/Vice President

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

 

	
  

  	
  CITIBANK, N.A., 

  
	
   

  	
   

  	
  as Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  William
  Washburn

  
	
   

  	
   

  	
  Name:  William
  Washburn

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   
  Director/Vice President

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

 

	
  

  	
  GENERAL ELECTRIC CAPITAL

  
	
   

  	
   

  	
  CORPORATION,

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Peter B.
  Zone

  
	
   

  	
   

  	
  Name:  Peter
  B. Zone

  	
   

  	
   

  
	
   

  	
   

  	
  Title:    Its
  Duly Authorized Signatory

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

 

	
  

  	
  THE BANK OF NOVA SCOTIA,

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  V. H.
  Gibson

  
	
   

  	
   

  	
  Name:  V. H.
  Gibson

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   
  Assistant Agent

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

 

	
  

  	
  LASALLE BUSINESS CREDIT, LLC,

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Thomas J.
  Brennan

  
	
   

  	
   

  	
  Name:  Thomas J.
  Brennan

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   
  First Vice President

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

 

	
  

  	
  CIT HEALTHCARE LLC,

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Scot R.
  Sandel

  
	
   

  	
   

  	
  Name:  Scot R.
  Sandel

  	
   

  	
   

  
	
   

  	
   

  	
  Title:    Vice President

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

 

	
  

  	
  MERRILL
  LYNCH CAPITAL,

  
	
   

  	
   

  	
  a division of Merrill Lynch Business Financial
  Services Inc.,

  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Amy
  Hansen

  
	
   

  	
   

  	
  Name:  Amy
  Hansen

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   
  Assistant Vice President

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

 

	
  

  	
  SIEMENS FINANCIAL SERVICES, INC.

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Mark
  Picillo

  
	
   

  	
   

  	
  Name:  Mark
  Picillo

  	
   

  	
   

  
	
   

  	
   

  	
  Title:    Vice
  President

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

 

	
  

  	
  UBS LOAN FINANCE LLC,

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Richard
  L. Tavrow

  
	
   

  	
   

  	
  Name:  Richard
  L. Tavrow

  	
   

  	
   

  
	
   

  	
   

  	
  Title:    Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Irja R.
  Otsa

  
	
   

  	
   

  	
  Name:  Irja R.
  Otsa

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   
  Associate Director

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

	
  

  	
  STATE OF CALIFORNIA PUBLIC

  
	
   

  	
   

  	
  EMPLOYEES’ RETIREMENT SYSTEM

  
	
   

  	
   

  	
  as Lender

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Arnold B.
  Phillips

  
	
   

  	
   

  	
  Name:  Arnold
  B. Phillips

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   
  Senior Portfolio Manager

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

	
  

  	
  BANK
  OF AMERICA, N.A.,

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Hance
  VanBeber

  
	
   

  	
   

  	
  Name:  Hance
  VanBeber

  	
   

  	
   

  
	
   

  	
   

  	
  Title:    Sr.
  Vice President

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

	
  

  	
  GMAC COMMERCIAL FINANCE LLC -

  
	
   

  	
   

  	
  STRUCTURED FINANCE DIVISION

  
	
   

  	
   

  	
  as Lender

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  W.
  Wakefield Smith

  
	
   

  	
   

  	
  Name:  W.
  Wakefield Smith

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   
  Director

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

	
  

  	
  ALLIED IRISH BANKS, P.L.C.

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  John F.
  Farrace

  
	
   

  	
   

  	
  Name:

  	
  John F. Farrace

  
	
   

  	
   

  	
  Title:    

  	
  Co-Head Leverage Finance

  Director of Corporate Banking

  North America

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Eanna P.
  Mulkere

  
	
   

  	
   

  	
  Name:  Eanna
  P. Mulkere

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   
  Assistant Vice President

  	
   

  	
   

  
						

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

	
  

  	
  CAPITAL SOURCE FINANCE LLC

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Patrick
  L. Coffey

  
	
   

  	
   

  	
  Name:

  	
  Patrick L. Coffey

  
	
   

  	
   

  	
  Title:    

  	
  Director — Healthcare & Specialty

  Finance

  
						

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

	
  

  	
  GOLDMAN SACHS CREDIT 

  
	
   

  	
   

  	
  PARTNERS L.P.,

  
	
   

  	
   

  	
  as Lender

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Bruce
  Mendelsohn 

  
	
   

  	
   

  	
  Name:  Bruce
  Mendelsohn 

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   
  Authorized Signatory

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

	
  

  	
  HFG HEALTHCO — 5 LLC,

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  HFG Healthco — 5, Inc.,

  	
   

  	
   

  
	
   

  	
   

  	
  a Member

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Mary L.
  Brady

  
	
   

  	
   

  	
  Name:  Mary L.
  Brady

  	
   

  	
   

  
	
   

  	
   

  	
  Title:    Vice
  President

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

	
  

  	
  WELLS FARGO FOOTHILL, LLC.

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Dennis
  King

  
	
   

  	
   

  	
  Name:  Dennis
  King

  	
   

  	
   

  
	
   

  	
   

  	
  Title:    Vice
  President

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO TENET
HEALTHCARE CORPORATION CREDIT AGREEMENT]

 

Exhibit A

to

Credit Agreement

Form of Assignment and Acceptance

Assignment
and Acceptance, dated
as of              
    ,         
(this “Assignment and Acceptance”) (between [NAME OF ASSIGNOR] (the “Assignor”) and [NAME
OF ASSIGNEE] (the “Assignee”).

Reference is made to the Credit Agreement, dated as of
November    , 2006 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Tenet Healthcare Corporation, a Nevada
corporation (the “Borrower”), the Lenders and
Issuers party thereto, Citicorp USA, Inc., as agent for the Lenders and Issuers
(in such capacity, the “Administrative Agent”),
and Banc of America Securities LLC, as syndication agent.  Capitalized terms used herein and not otherwise
defined herein are used herein as defined in the Credit Agreement.

The Assignor and the Assignee hereby agree as follows:

1.                                       As of the Effective Date (as defined
below), the Assignor hereby sells and assigns to the Assignee, and the Assignee
hereby purchases and assumes from the Assignor, all of the Assignor’s rights
and obligations under the Credit Agreement to the extent related to the amounts
and percentages specified in Section 1
of Schedule I hereto.

2.                                       The Assignor (a) represents and
warrants that (i) it is the legal and beneficial owner of the interest being
assigned by it hereunder and that such interest is free and clear of any
adverse claim and (ii) it has full power and authority, and has taken all
actions necessary, to execute and deliver this Assignment and Acceptance and to
consummate the transactions contemplated hereby, (b) makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or any other Loan Document or any other instrument or document
furnished pursuant thereto or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement or
any other Loan Document, any other instrument or document furnished pursuant
thereto or any collateral thereunder, (c) makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of the Borrower and any other Loan Party or the performance or observance by
the Borrower and any other Loan Party of any of its obligations under the
Credit Agreement or any other Loan Document or any other instrument or document
furnished pursuant thereto and (iv) attaches the Revolving Credit Note(s),
if any, held by the Assignor and requests that the Administrative Agent
exchange such Revolving Credit Note(s) for a new Revolving Credit Note or
Revolving Credit Notes in accordance with Section 11.2(d)(Assignments
and Participations) of the Credit Agreement.

3.                                       The Assignee (a) agrees that it
will, independently and without reliance upon the Administrative Agent, the
Assignor or any other Revolving Credit Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement, 

 A-1
 

                                                (b) appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under the Credit Agreement and the other Loan Documents as are
delegated to the Administrative Agent by the terms thereof, together with such
powers as are reasonably incidental thereto, (c) agrees that it will
perform in accordance with their terms all of the obligations that, by the
terms of the Credit Agreement, are required to be performed by it as a Lender,
(d) represents and warrants that it (i) is an Eligible Assignee, (ii) has
full power and authority, and has taken all actions necessary, to execute and
deliver this Assignment and Acceptance and to consummate the transactions
contemplated hereby and (iii) is sophisticated with respect to decisions to
acquire assets of the type represented by the Assigned Interest and either it
or the Person exercising discretion in making the decision to acquire the Assigned
Interest is experienced in acquiring assets of such type, (e) confirms it
has received or has been given the opportunity to receive such documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Acceptance and to purchase the
Assigned Interest independently and without reliance upon the Administrative
Agent, the Assignor or any Lender, (f) specifies as its Domestic Lending
Office (and address for notices) and Eurodollar Lending Office the offices set
forth beneath its name on the signature pages hereof and (g) if
applicable, attaches two properly completed Forms W-8BEN, W-8ECI or successor
or form prescribed by the Internal Revenue Service of the United States,
certifying that such Assignee is entitled to receive all payments under the
Credit Agreement and the Revolving Credit Notes payable to it without deduction
or withholding of any United States federal income taxes.

4.                                       Following the execution of this
Assignment and Acceptance by the Assignor and the Assignee, it will be
delivered to the Administrative Agent (together with an assignment fee in the
amount of $3,500 payable by the Assignee to the Administrative Agent if
required pursuant to Section 11.2(b)(Assignments
and Participations)) for acceptance and recording by the
Administrative Agent.  The effective date
of this Assignment and Acceptance shall be the effective date specified in Section 2 of Schedule I hereto
(the “Effective Date”).

5.                                       Upon such acceptance and recording by the
Administrative Agent, then, as of the Effective Date, (a) the Assignee
shall be a party to the Credit Agreement and, to the extent provided in this
Assignment and Acceptance, have the rights and obligations under the Credit
Agreement of a Lender and, if such Lender were an Issuer, of such Issuer and
(b) the Assignor shall, to the extent provided in this Assignment and
Acceptance, relinquish its rights (except those surviving the payment in full
of the Obligations) and be released from its obligations under the Loan
Documents other than those relating to events or circumstances occurring prior
to the Effective Date.

6.                                       Upon such acceptance and recording by the
Administrative Agent, from and after the Effective Date, the Administrative
Agent shall make all payments under the Loan Documents in respect of the
interest assigned hereby (a) to the Assignee, in the case of amounts
accrued with respect to any period on or after the Effective Date, and
(b) to the Assignor, in the case of amounts accrued with respect to any
period prior to the Effective Date.

7.                                       This Assignment and Acceptance shall be
governed by, and be construed and interpreted in accordance with, the law of
the State of New York.

 A-2
 

 

8.                                       This Assignment and Acceptance may be
executed in any number of counterparts and by different parties on separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute but one and the same
agreement.  Delivery of an executed
counterpart of this Assignment and Acceptance by telecopier shall be effective
as delivery of a manually executed counterpart of this Assignment and
Acceptance.

[SIGNATURE
PAGES FOLLOW]

 

 A-3

	
  

  	
  IN WITNESS WHEREOF, the parties hereto have caused this
  Assignment and Acceptance to be executed by their respective officers
  thereunto duly authorized, as of the date first above written.

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR],

  
	
   

  	
  as Assignor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE],

  
	
   

  	
  as Assignee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Domestic Lending Office (and address for notices):

  
	
   

  	
   

  
	
   

  	
  [Insert Address (including contact name, fax number
  and e-mail address)]

  
	
   

  	
   

  
	
   

  	
  Eurodollar Lending Office:

  
	
   

  	
   

  
	
   

  	
  [Insert Address (including contact name, fax number
  and e-mail address)]

  

 

[SIGNATURE PAGE TO
ASSIGNMENT AND ACCEPTANCE]

ACCEPTED AND AGREED

this    
day of                      :

	
  CITICORP USA, INC.,

  
	
  as Administrative Agent

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  [TENET HEALTHCARE CORPORATION](1)

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

(1)             If
required pursuant to Section 11.2 of the Credit Agreement.

[SIGNATURE PAGE TO
ASSIGNMENT AND ACCEPTANCE]

SCHEDULE I

TO

ASSIGNMENT AND ACCEPTANCE

	
  SECTION 1.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ratable Portion assigned to
  Assignee:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Revolving Credit
  Facility

  	
   

  	
   

  	
  %

  
	
  Term Loan
  Facility

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Revolving Credit
  Commitment assigned to Assignee:

  	
   

  	
  $

  	
            

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Aggregate outstanding
  principal amount of Revolving Loans assigned to Assignee:

  	
   

  	
  $

  	
            

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
             ,
        

  	
   

  

 

Exhibit
B

to

Credit Agreement

Form of Revolving Credit Note

	
  Lender: [Name of Lender]

  	
   

  	
  New York, New York

  
	
  Principal Amount: [$               ]

  	
   

  	
                          ,       

  

 

For
value received, the
undersigned, Tenet Healthcare
Corporation, a Nevada corporation (the “Borrower”),
hereby promises to pay to the order of the Lender set forth above (the “Lender”) the Principal Amount set forth above, or, if less,
the aggregate unpaid principal amount of all Revolving Loans (as defined in the
Credit Agreement referred to below) of the Lender to the Borrower, payable at
such times, and in such amounts, as are specified in the Credit Agreement.

The Borrower promises to
pay interest on the unpaid principal amount of the Revolving Loans from the
date made until such principal amount is paid in full, at such interest rates,
and payable at such times, as are specified in the Credit Agreement.

Both principal and
interest are payable in Dollars to Citicorp USA, Inc., as Administrative Agent,
at 388 Greenwich Street, 20th Floor, New York, New York 10013, in immediately
available funds.

This Revolving Credit
Note is one of the Revolving Credit Notes referred to in, and is entitled to
the benefits of, the Credit Agreement, dated as of November    ,
2006 (as the same may be amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”),
among the Borrower, the Lenders and Issuers party thereto, Citicorp USA, Inc.,
as agent for the Lenders and Issuers, and Banc of America Securities LLC, as
syndication agent.  Capitalized terms
used herein and not defined herein are used herein as defined in the Credit
Agreement.

The Credit Agreement,
among other things, (a) provides for the making of Revolving Loans by the
Lender to the Borrower in an aggregate amount not to exceed at any time
outstanding the Principal Amount set forth above, the indebtedness of the
Borrower resulting from such Revolving Loans being evidenced by this Revolving
Credit Note and (b) contains provisions for acceleration of the maturity
of the unpaid principal amount of this Revolving Credit Note upon the happening
of certain stated events and also for prepayments on account of the principal
hereof prior to the maturity hereof upon the terms and conditions therein
specified.

This Revolving Credit
Note is entitled to the benefits of the Guaranty and is secured as provided in
the Collateral Documents.

Demand, diligence,
presentment, protest and notice of non-payment and protest are hereby waived by
the Borrower.

This Revolving Credit
Note shall be governed by, and construed and interpreted in accordance with,
the law of the State of New York.

[Signature Page Follows]

 

 B-1

IN
WITNESS WHEREOF, the
Borrower has caused this Revolving Credit Note to be executed and delivered by
its duly authorized officer as of the day and year and at the place set forth
above.

	
  

  	
   

  	
  TENET HEALTHCARE CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  

 

[SIGNATURE PAGE TO REVOLVING CREDIT NOTE]

EXHIBIT C

TO

CREDIT AGREEMENT

FORM OF NOTICE OF BORROWING

                 
   ,     

CITICORP
USA, INC.,
      as Administrative Agent under the 
      Credit Agreement referred to below

388 Greenwich Street, 20th Floor

New York, New York 10013

Attention:

Re:                           TENET HEALTHCARE CORPORATION (the “Borrower”)

Reference is made to the Credit Agreement, dated as of
November    , 2006 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Credit
Agreement”), among the Borrower, the Lenders and Issuers party
thereto, Citicorp USA, Inc., as agent for the Lenders and Issuers, and Banc of
America Securities LLC, as syndication agent. 
Capitalized terms used herein and not otherwise defined herein are used
herein as defined in the Credit Agreement.

The Borrower hereby gives you notice, irrevocably,
pursuant to Section 2.2 (Borrowing Procedures)
of the Credit Agreement that the undersigned hereby requests a Borrowing under
the Credit Agreement and, in connection therewith, sets forth below the
information relating to such Borrowing (the “Proposed
Borrowing”) as required by Section 2.2 (Borrowing
Procedures) of the Credit Agreement:

(a)           The date of the Proposed Borrowing is
                 
   ,      (the “Funding Date”).

(b)           The aggregate amount of the Borrowing
is $          , of which
amount [$          consists of Base Rate Loans] [and $ 
        consists of Eurodollar Rate Loans
having an initial Interest Period of [one] [two] [three] [six] month[s]].

(c)           After giving effect to the Proposed
Borrowing, the Available Credit amount is $ 
       (1).

The undersigned hereby
certifies that the following statements are true on the date hereof and shall
be true on the Funding Date both before and after giving effect to the Proposed
Borrowing and to the application of the proceeds therefrom:

(1) To be calculated after giving effect to any Availability Reserve in
effect as per a notice with respect to which has been provided to the Borrower.

 C-1
 

(a)           the representations and warranties
set forth in Article IV (Representations and
Warranties) of the Credit Agreement and the other Loan Documents are
true and correct in all material respects on and as of the Funding Date with
the same effect as though made on and as of such date, except to the extent
such representations and warranties expressly relate to an earlier date, in
which case such representations and warranties shall have been true and correct
as of such date; and

(b)           no Default or Event of Default has
occurred and is continuing on the Funding Date.

 

 C-2

 

	
  

  	
  TENET HEALTHCARE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

[signature page to notice of
borrowing]

Exhibit
D

to

Credit Agreement

Form of Swing Loan
Request

                 
    ,             

Citicorp
USA, Inc.,
     as Administrative Agent under the 
     Credit Agreement referred to below

388 Greenwich Street, 20th Floor

New York, New York 10013

Attention:

Re:                               Tenet Healthcare
Corporation  (the “Borrower”)

Reference is made to the Credit Agreement, dated as of
November    , 2006 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Credit
Agreement”), among the Borrower, the Lenders and Issuers party
thereto, Citicorp USA, Inc., as agent for the Lenders and Issuers, and Banc of
America Securities LLC, as syndication agent. 
Capitalized terms used herein and not otherwise defined herein are used
herein as defined in the Credit Agreement.

The Borrower hereby gives you notice, irrevocably,
pursuant to Section 2.3 (Swing Loans) of the
Credit Agreement that the undersigned hereby requests that the Swing Loan
Lender make Swing Loans available to the Borrower under the Credit Agreement
and, in that connection therewith, sets forth below the information relating to
such Swing Loans (the “Proposed Advance”)
as required by Section 2.3 (Swing Loans) of the
Credit Agreement:

(a)           The date of the Proposed Advance is                  
    ,             
(the “Funding Date”).

(b)           The aggregate amount of the Proposed
Advance is $          .

The undersigned hereby
certifies that the following statements are true on the date hereof and shall
be true on the Funding Date both before and after giving effect to the Proposed
Advance and to the application of the proceeds therefrom:

(a)           the representations and warranties
set forth in Article IV (Representations and
Warranties) of the Credit Agreement and the other Loan Documents are
true and correct in all material respects on and as of the Funding Date with
the same effect as though made on and as of such date, except to the extent
such representations and warranties expressly relate to an earlier date, in
which case such representations and warranties shall have been true and correct
as of such date; and

(b)           no Default or Event of Default has
occurred and is continuing on the Funding Date.

 

 

 

[Signature
Page Follows]

 

 D-1

 

	
  

  	
  Tenet Healthcare Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

[Signature
Page to Swing Loan Request]

 

 

Exhibit
E

to

Credit Agreement

Form of Letter of Credit Request

                
    ,        

[Name of Issuer], as an Issuer
  under the Credit Agreement referred
  to below

Citicorp
USA, Inc.,

as Administrative Agent under the 

Credit Agreement referred to below

388 Greenwich Street, 20th Floor

New York, New York 10013

Attention:

Re:                     Tenet
Healthcare Corporation (the “Borrower”)

Reference is made to the Credit Agreement, dated as of
November    , 2006 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Credit
Agreement”), among the Borrower, the Lenders and Issuers party
thereto, Citicorp USA, Inc., as agent for the Lenders and Issuers, and Banc of
America Securities LLC, as syndication agent. 
Capitalized terms used herein and not otherwise defined in this Letter
of Credit Request are used herein as defined in the Credit Agreement.

The Borrower hereby gives you notice, irrevocably,
pursuant to Section 2.4(c) (Letters of Credit)
of the Credit Agreement that the undersigned requests the issuance of a Letter
of Credit by [Name of Issuer] in the form of a [standby] [documentary] letter
of credit for the benefit of [Name of Beneficiary], in the amount of [$              ],
to be issued on                 
    ,       (the “Issue Date”) and having an expiration date of                 
    ,        .

The form of the requested Letter of Credit is attached
hereto.

The undersigned hereby
certifies that the following statements are true on the date hereof and shall
be true on the Issue Date both before and after giving effect thereto:

(a)           the representations and warranties
set forth in Article IV (Representations and
Warranties) of the Credit Agreement and the other Loan Documents are
true and correct in all material respects on and as of the Issue Date with the
same effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date, in which
case such representations and warranties shall have been true and correct as of
such date; and

(b)           no Default or Event of Default has
occurred and is continuing on the Issue Date.

 

 

[Signature Page Follows]

 

 E-1

 

	
  

  	
  Tenet Healthcare Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 

[Signature Page to Letter of Credit Request]

 

Exhibit
F

to

Credit Agreement

Form of
Notice of Conversion or Continuation

               
   ,     

Citicorp USA, Inc.,

as Administrative Agent under the 

Credit Agreement referred to below

388 Greenwich Street, 20th Floor
 New York, New York 10013

Attention:

Re:                     Tenet
Healthcare Corporation  (the “Borrower”)

Reference is made to the Credit Agreement, dated as of
November    , 2006 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Credit
Agreement”), among the Borrower, the Lenders and Issuers party
thereto, Citicorp USA, Inc., as agent for the Lenders and Issuers, and Banc of
America Securities LLC, as syndication agent. 
Capitalized terms used herein and not otherwise defined herein are used
herein as defined in the Credit Agreement.

The Borrower hereby gives you notice, irrevocably,
pursuant to Section 2.11 (Conversion/Continuation Option)  of the Credit Agreement that the undersigned
hereby requests a [conversion] [continuation] on                
   ,      of $              
in principal amount of presently outstanding Revolving Loans that are [Base
Rate Loans] [Eurodollar Rate Loans] having an Interest Period ending on                
   ,      [to] [as] [Base
Rate][Eurodollar Rate] Loans.  [The
Interest Period for such amount requested to be converted to or continued as
Eurodollar Rate Loans is [one] [two] [three] [six] month[s]].]

 

 

[Signature Page
Follows]

 

 F-1

In connection herewith, the undersigned hereby
certifies that no Default or Event of Default has occurred and is continuing on
the date hereof.

	
  

  	
  Tenet Healthcare
  Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

[Signature
Page to Notice of Conversion or/Continuation]

 

 

EXHIBIT G

TO

CREDIT AGREEMENT

FORM OF OPINION OF COUNSEL FOR THE LOAN PARTIES

Final opinion
provided separately.

 

EXHIBIT H

Guaranty

Guaranty, dated as of November 16, 2006 (this “Guaranty”), by each of the entities listed on the signature
pages hereof or that becomes a party hereto pursuant to Section 24
(Additional Guarantors) hereof (collectively, the “Guarantors” and individually a “Guarantor”),
in favor of the Administrative Agent, each Lender, each Issuer and each other
holder of an Obligation (as each such term is defined in the Credit Agreement
referred to below) (each, a “Guarantied Party”
and, collectively, the “Guarantied Parties”).

W i t n e s s e t h:

Whereas, pursuant to
the Credit Agreement dated as of November 16, 2006 (together with all
appendices, exhibits and schedules thereto and as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms defined therein and
used herein having the meanings given to them in the Credit Agreement) among Tenet Healthcare Corporation (the “Borrower”), the Lenders and Issuers party thereto and
Citicorp USA, Inc., as agent for the Lenders and Issuers (in such capacity, the
“Administrative Agent”), the Lenders and
Issuers have severally agreed to make extensions of credit to the Borrower upon
the terms and subject to the conditions set forth therein;

Whereas, each
Guarantor is a direct or indirect Subsidiary of the Borrower;

Whereas, each
Guarantor will receive substantial direct and indirect benefits from the making
of the Loans, the issuance of the Letters of Credit and the granting of the
other financial accommodations to the Borrower under the Credit Agreement; and

Whereas, a condition
precedent to the obligation of the Lenders and the Issuers to make their
respective extensions of credit to the Borrower under the Credit Agreement is
that the Guarantors shall have executed and delivered this Guaranty for the
benefit of the Guarantied Parties;

Now, Therefore, in
consideration of the premises set forth above, the terms and conditions
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

Section 1               Guaranty

(a)           To
induce the Lenders to make the Loans and the Issuers to issue Letters of
Credit, each Guarantor hereby absolutely, unconditionally and irrevocably
guarantees, jointly with the other Guarantors and severally, as primary obligor
and not merely as surety, the full and punctual payment when due and in the
currency due, whether at stated maturity or earlier, by reason of acceleration,
mandatory prepayment or otherwise in accordance herewith or any other Loan
Document, of all the Obligations, whether or not from time to time reduced or
extinguished or hereafter increased or incurred, whether or not recovery may be
or hereafter may become barred by any statute of limitations, whether or not
enforceable as against the Borrower, whether now or hereafter existing, and
whether due or to become due, including principal, interest (including interest
at the contract rate applicable upon default accrued or accruing after the 

 H-1
 

commencement of any proceeding under the
Bankruptcy Code, or any applicable provisions of comparable state or foreign
law, whether or not such interest is an allowed claim in such proceeding), fees
and costs of collection.  This Guaranty
constitutes a guaranty of payment and not of collection.

(b)           Each
Guarantor further agrees that, if (i) any payment made by Borrower or any
other Person and applied to the Obligations is at any time annulled, avoided,
set aside, rescinded, invalidated, declared to be fraudulent or preferential or
otherwise required to be refunded or repaid, or (ii) the proceeds of
Collateral are required to be returned by any Guarantied Party to the Borrower,
its estate, trustee, receiver or any other party, including any Guarantor,
under any bankruptcy law, equitable cause or any other Requirement of Law,
then, to the extent of such payment or repayment, any such Guarantor’s
liability hereunder (and any Lien or other Collateral securing such liability)
shall be and remain in full force and effect, as fully as if such payment had
never been made.  If, prior to any of the
foregoing, this Guaranty shall have been cancelled or surrendered (and if any
Lien or other Collateral securing such Guarantor’s liability hereunder shall
have been released or terminated by virtue of such cancellation or surrender),
this Guaranty (and such Lien or other Collateral) shall be reinstated in full
force and effect, and such prior cancellation or surrender shall not diminish,
release, discharge, impair or otherwise affect the obligations of any such
Guarantor in respect of the amount of such payment (or any Lien or other
Collateral securing such obligation).

Section 2               Limitation of Guaranty

Any term or provision of this Guaranty or any other Loan
Document to the contrary notwithstanding, the maximum aggregate amount of the
Obligations for which any Guarantor shall be liable shall not exceed the
maximum amount for which such Guarantor can be liable without rendering this
Guaranty or any other Loan Document, as it relates to such Guarantor, subject
to avoidance under applicable law relating to fraudulent conveyance or
fraudulent transfer (including Section 548 of the Bankruptcy Code or any
applicable provisions of comparable state law) (collectively, “Fraudulent Transfer Laws”), in each case after giving effect
(a) to all other liabilities of such Guarantor, contingent or otherwise, that
are relevant under such Fraudulent Transfer Laws (specifically excluding,
however, any liabilities of such Guarantor in respect of intercompany
Indebtedness to the Borrower to the extent that such Indebtedness would be
discharged in an amount equal to the amount paid by such Guarantor hereunder)
and (b) to the value as assets of such Guarantor (as determined under the
applicable provisions of such Fraudulent Transfer Laws) of any rights to
subrogation, contribution, reimbursement, indemnity or similar rights held by
such Guarantor pursuant to (i) applicable Requirements of Law, (ii) Section 3 (Contribution)
of this Guaranty or (iii) any other Contractual Obligations providing for
an equitable allocation among such Guarantor and other Subsidiaries or
Affiliates of the Borrower of obligations arising under this Guaranty or other
guaranties of the Obligations by such parties.

Section 3               Contribution

To the extent that any Guarantor shall be required
hereunder to pay a portion of the Obligations exceeding the greater of
(a) the amount of the economic benefit actually received by such Guarantor
from the Revolving Loans and the other financial accommodations provided to the
Borrower under the Loan Documents and (b) the amount such Guarantor would
otherwise have paid if such Guarantor had paid the aggregate amount of the
Obligations (excluding the amount thereof repaid by the Borrower) in the same
proportion as such Guarantor’s net worth at 

 H-2
 

the date enforcement is sought hereunder bears to the
aggregate net worth of all the Guarantors at the date enforcement is sought
hereunder, then such Guarantor shall be reimbursed by such other Guarantors for
the amount of such excess, pro rata, based on the respective net worths of such
other Guarantors at the date enforcement hereunder is sought.

Section 4               Authorization; Other Agreements

The Guarantied Parties are hereby authorized, without
notice to, or demand upon, any Guarantor, which notice and demand requirements
each are expressly waived hereby, and without discharging or otherwise
affecting the obligations of such Guarantor hereunder (which obligations shall
remain absolute and unconditional notwithstanding any such action or omission
to act), from time to time, to do each of the following:

(a)           supplement,
renew, extend, accelerate or otherwise change the time for payment of, or other
terms relating to, the Obligations, or any part of them, or otherwise modify,
amend or change the terms of any promissory note or other agreement, document
or instrument (including the other Loan Documents) now or hereafter executed by
the Borrower and delivered to the Guarantied Parties or any of them, including
any increase or decrease of principal or the rate of interest thereon;

(b)           waive
or otherwise consent to noncompliance with any provision of any instrument
evidencing the Obligations, or any part thereof, or any other instrument or
agreement in respect of the Obligations (including the other Loan Documents)
now or hereafter executed by the Borrower and delivered to the Guarantied
Parties or any of them;

(c)           accept
partial payments on the Obligations;

(d)           receive,
take and hold additional security or collateral for the payment of the
Obligations or any part of them and exchange, enforce, waive, substitute,
liquidate, terminate, abandon, fail to perfect, subordinate, transfer,
otherwise alter and release any such additional security or collateral;

(e)           settle,
release, compromise, collect or otherwise liquidate the Obligations or accept,
substitute, release, exchange or otherwise alter, affect or impair any security
or collateral for the Obligations or any part of them or any other guaranty
therefor, in any manner;

(f)            add,
release or substitute any one or more other guarantors, makers or endorsers of
the Obligations or any part of them and otherwise deal with the Borrower or any
other guarantor, maker or endorser;

(g)           apply
to the Obligations any payment or recovery (x) from the Borrower, from any
other guarantor, maker or endorser of the Obligations or any part of them or
(y) from any Guarantor in such order as provided herein, in each case
whether such Obligations are secured or unsecured or guaranteed or not
guaranteed by others;

(h)           apply
to the Obligations any payment or recovery from any Guarantor of the
Obligations or any sum realized from security furnished by such Guarantor upon
its indebtedness or obligations to the Guarantied Parties or any of them, in
each case whether or not such indebtedness or obligations relate to the
Obligations; and

 H-3
 

(i)            refund
at any time any payment received by any Guarantied Party in respect of any
Obligation, and payment to such Guarantied Party of the amount so refunded
shall be fully guaranteed hereby even though prior thereto this Guaranty shall
have been cancelled or surrendered (or any release or termination of any
Collateral by virtue thereof), and such prior cancellation or surrender shall
not diminish, release, discharge, impair or otherwise affect the obligations of
any Guarantor hereunder in respect of the amount so refunded (and any
Collateral so released or terminated shall be reinstated with respect to such
obligations);

even if any right of reimbursement or subrogation or
other right or remedy of any Guarantor is extinguished, affected or impaired by
any of the foregoing (including any election of remedies by reason of any
judicial, non-judicial or other proceeding in respect of the Obligations
that impairs any subrogation, reimbursement or other right of such Guarantor).

Section 5               Guaranty Absolute and
Unconditional

Each Guarantor hereby waives any defense of a surety
or guarantor or any other obligor on any obligations arising in connection with
or in respect of any of the following and hereby agrees that its obligations
under this Guaranty are absolute and unconditional and shall not be discharged
or otherwise affected as a result of any of the following:

(a)           the
invalidity or unenforceability of any of the Borrower’s obligations under the
Credit Agreement or any other Loan Document or any other agreement or
instrument relating thereto, or any security for, or other guaranty of the
Obligations or any part of them, or the lack of perfection or continuing perfection
or failure of priority of any security for the Obligations or any part of them;

(b)           the
absence of any attempt to collect the Obligations or any part of them from the
Borrower or other action to enforce the same;

(c)           failure
by any Guarantied Party to take any steps to perfect and maintain any Lien on,
or to preserve any rights to, any Collateral;

(d)           any
Guarantied Party’s election, in any proceeding instituted under chapter 11 of
the Bankruptcy Code, of the application of Section 1111(b)(2) of the
Bankruptcy Code or any applicable provisions of comparable state or foreign
law;

(e)           any
borrowing or grant of a Lien by the Borrower, as debtor-in-possession,
or extension of credit, under Section 364 of the Bankruptcy Code or any
applicable provisions of comparable state or foreign law;

(f)            the
disallowance, under Section 502 of the Bankruptcy Code, of all or any
portion of any Guarantied Party’s claim (or claims) for repayment of the
Obligations;

(g)           any
use of cash collateral under Section 363 of the Bankruptcy Code;

(h)           any
agreement or stipulation as to the provision of adequate protection in any
bankruptcy proceeding;

(i)            the
avoidance of any Lien in favor of the Guarantied Parties or any of them for any
reason;

 H-4
 

(j)            any
bankruptcy, insolvency, reorganization, arrangement, readjustment of debt,
liquidation or dissolution proceeding commenced by or against the Borrower, any
Guarantor or any of the Borrower’s other Subsidiaries, including any discharge
of, or bar or stay against collecting, any Obligation (or any part of them or
interest thereon) in or as a result of any such proceeding;

(k)           failure
by any Guarantied Party to file or enforce a claim against the Borrower or its
estate in any bankruptcy or insolvency case or proceeding;

(l)            any
action taken by any Guarantied Party if such action is authorized hereby;

(m)          any
election following the occurrence of an Event of Default by any Guarantied
Party to proceed separately against the personal property Collateral in
accordance with such Guarantied Party’s rights under the UCC or, if the
Collateral consists of both personal and real property, to proceed against such
personal and real property in accordance with such Guarantied Party’s rights
with respect to such real property;

(n)           any
change in the corporate existence or structure of the Borrower or any other
Loan Party;

(o)           any
defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by any
Guarantor or any other Person against any Guarantied Party;

(p)           any
Requirement of Law affecting any term of any Guarantor’s obligations under this
Guaranty; or

(q)           any
other circumstance that might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor or any other obligor on any
obligations, other than the payment in full of the Obligations.

Section 6               Waivers

Each Guarantor hereby waives diligence, promptness,
presentment, demand for payment or performance and protest and notice of
protest, notice of acceptance and any other notice in respect of the
Obligations or any part of them, and any defense arising by reason of any
disability or other defense of the Borrower. 
Each Guarantor shall not, until the Obligations are irrevocably paid in
full and the Revolving Credit Commitments have been terminated, assert any
claim or counterclaim it may have against the Borrower or set off any of its
obligations to the Borrower against any obligations of the Borrower to it;
provided, however, that, so long as the Borrower has not received a written “notice
of default” and no Default or Event of Default shall have occurred and be
continuing, the foregoing shall not apply to the settlement of intercompany
debt or netting of intercompany obligations in the ordinary course of business.  In connection with the foregoing, each
Guarantor covenants that its obligations hereunder shall not be discharged,
except by complete performance.

 H-5
 

Section 7               Reliance

Each Guarantor hereby assumes responsibility for
keeping itself informed of the financial condition of the Borrower and any
endorser and other guarantor of all or any part of the Obligations, and of all
other circumstances bearing upon the risk of nonpayment of the Obligations, or
any part thereof, that diligent inquiry would reveal, and each Guarantor hereby
agrees that no Guarantied Party shall have any duty to advise any Guarantor of
information known to it regarding such condition or any such
circumstances.  In the event any
Guarantied Party, in its sole discretion, undertakes at any time or from time
to time to provide any such information to any Guarantor, such Guarantied Party
shall be under no obligation (a) to undertake any investigation not a part
of its regular business routine, (b) to disclose any information that such
Guarantied Party, pursuant to accepted or reasonable commercial finance or
banking practices, wishes to maintain confidential or (c) to make any
other or future disclosures of such information or any other information to any
Guarantor.

Section 8               Waiver of Subrogation and
Contribution Rights

Until the Obligations have been irrevocably paid in
full and the Revolving Credit Commitments have been terminated, the Guarantors
shall not enforce or otherwise exercise any right of subrogation to any of the
rights of the Guarantied Parties or any part of them against the Borrower or
any right of reimbursement or contribution or similar right against the
Borrower by reason of this Guaranty or by any payment made by any Guarantor in
respect of the Obligations.

Section 9               Subordination

Each Guarantor hereby agrees that any Indebtedness of
the Borrower now or hereafter owing to any Guarantor, whether heretofore, now
or hereafter created (the “Guarantor Subordinated
Debt”), is hereby subordinated to all of the Obligations and that, except
as permitted under Section 8.5
(Restricted Payments) of the Credit
Agreement, the Guarantor Subordinated Debt shall not be paid in whole or in
part until the Obligations have been paid in full and this Guaranty is
terminated and of no further force or effect. 
No Guarantor shall accept any payment of or on account of any Guarantor
Subordinated Debt at any time in contravention of the foregoing.  Upon the receipt of a written “notice of
default” advising of the occurrence and during the continuance of an Event of
Default, the Borrower shall pay to the Administrative Agent any payment of all
or any part of the Guarantor Subordinated Debt and any amount so paid to the
Administrative Agent shall be applied to payment of the Obligations as provided
in Section 2.13(f) (Payments and Computations) of the Credit Agreement.  Each payment on the Guarantor Subordinated
Debt received in violation of any of the provisions hereof shall be deemed to
have been received by such Guarantor as trustee for the Guarantied Parties and
shall be paid over to the Administrative Agent immediately on account of the
Obligations, but without otherwise affecting in any manner such Guarantor’s
liability hereof.  Each Guarantor agrees
to file all claims against the Borrower in any bankruptcy or other proceeding
in which the filing of claims is required by law in respect of any Guarantor
Subordinated Debt, and the Administrative Agent shall be entitled to all of
such Guarantor’s rights thereunder.  If
for any reason a Guarantor fails to file such claim at least ten Business Days
prior to the last date on which such claim should be filed, such Guarantor
hereby irrevocably appoints the Administrative Agent as its true and lawful
attorney-in-fact and is hereby authorized to act as attorney-in-fact in such
Guarantor’s name to file such claim or, in the Administrative Agent’s
discretion, to assign such claim to and cause proof of claim to be filed in the
name of the Administrative Agent or its nominee.  In all such cases, whether in administration,
bankruptcy or otherwise, the person or persons authorized 

 H-6
 

to pay such claim shall pay to the Administrative
Agent the full amount payable on the claim in the proceeding, and, to the full
extent necessary for that purpose, each Guarantor hereby assigns to the
Administrative Agent all of such Guarantor’s rights to any payments or
distributions to which such Guarantor otherwise would be entitled.  If the amount so paid is greater than such
Guarantor’s liability hereunder, the Administrative Agent shall pay the excess
amount to the party entitled thereto.  In
addition, each Guarantor hereby irrevocably appoints the Administrative Agent
as its attorney-in-fact to exercise all of such Guarantor’s voting
rights in connection with any bankruptcy proceeding or any plan for the
reorganization of the Borrower.

Section 10             Default; Remedies

The obligations of each Guarantor hereunder are
independent of and separate from the Obligations.  If any Obligation is not paid when due, or
upon any Event of Default hereunder and during the continuance thereof or upon
any default by the Borrower as provided in any other instrument or document
evidencing all or any part of the Obligations, the Administrative Agent may, at
its sole election, proceed directly and at once, without notice, against any
Guarantor to collect and recover the full amount or any portion of the
Obligations then due, without first proceeding against the Borrower or any
other guarantor of the Obligations, or against any Collateral under the Loan
Documents or joining the Borrower or any other guarantor in any proceeding
against any Guarantor.  At any time after
maturity of the Obligations, the Administrative Agent may (unless the
Obligations have been irrevocably paid in full), without notice to any
Guarantor and regardless of the acceptance of any Collateral for the payment
hereof, appropriate and apply toward the payment of the Obligations
(a) any indebtedness due or to become due from any Guarantied Party to
such Guarantor and (b) any moneys, credits or other property belonging to
such Guarantor at any time held by or coming into the possession of any
Guarantied Party or any of its respective Affiliates.

Section 11             Irrevocability

This Guaranty shall be irrevocable as to the
Obligations (or any part thereof) until the Commitments have been terminated
and all monetary Obligations then outstanding have been fully and completely
repaid in cash, at which time this Guaranty shall automatically be
cancelled.  Upon such cancellation and at
the written request of any Guarantor or its successors or assigns, and at the
cost and expense of such Guarantor or its successors or assigns, the
Administrative Agent shall execute in a timely manner a satisfaction of this
Guaranty and such instruments, documents or agreements as are necessary or
desirable to evidence the termination of this Guaranty.

Section 12             Setoff

Upon the occurrence and during the continuance of an
Event of Default and so long as the Requisite Lenders have requested that the
Administrative Agent declare the Obligations to be immediately due and payable
or the Obligations have become immediately due and payable without notice
pursuant to Section 9.2 of the Credit Agreement, each Guarantied Party and each
Affiliate of a Guarantied Party may, without notice to any Guarantor and
regardless of the acceptance of any security or collateral for the payment
hereof, appropriate and apply toward the payment of all or any part of the
Obligations (a) any indebtedness due or to become due from such Guarantied
Party or Affiliate to such Guarantor and (b) any moneys, credits or other
property belonging to such Guarantor, at any time held by, or coming into, the
possession of such Guarantied Party or Affiliate.

 H-7
 

Section 13             No Marshalling

Each Guarantor consents and agrees that no Guarantied
Party or Person acting for or on behalf of any Guarantied Party shall be under
any obligation to marshal any assets in favor of any Guarantor or against or in
payment of any or all of the Obligations.

Section 14             Enforcement; Waivers; Amendments

(a) No delay on the part of any Guarantied Party in
the exercise of any right or remedy arising under this Guaranty, the Credit
Agreement, any other Loan Document or otherwise with respect to all or any part
of the Obligations, the Collateral or any other guaranty of or security for all
or any part of the Obligations shall operate as a waiver thereof, and no single
or partial exercise by any such Person of any such right or remedy shall
preclude any further exercise thereof. 
Failure by any Guarantied Party at any time or times hereafter to
require strict performance by the Borrower, any Guarantor, any other guarantor
of all or any part of the Obligations or any other Person of any provision,
warranty, term or condition contained in any Loan Document now or at any time
hereafter executed by any such Persons and delivered to any Guarantied Party
shall not waive, affect or diminish any right of any Guarantied Party at any
time or times hereafter to demand strict performance thereof and such right
shall not be deemed to have been waived by any act (except by a written
instrument pursuant to Section 14(b)
or knowledge of any Guarantied Party, or its respective agents, officers or
employees.  No waiver of any Event of
Default by any Guarantied Party shall operate as a waiver of any other Event of
Default or the same Event of Default on a future occasion, and no action by any
Guarantied Party permitted hereunder shall in any way affect or impair any
Guarantied Party’s rights and remedies or the obligations of any Guarantor
under this Guaranty.  Any determination
by a court of competent jurisdiction of the amount of any principal or interest
owing by the Borrower to a Guarantied Party shall be conclusive and binding on
each Guarantor irrespective of whether such Guarantor was a party to the suit
or action in which such determination was made.

(b) None of the terms or provisions of this Guaranty
may be waived, amended, supplemented or modified except in accordance with Section11.1 (Amendments, Waivers, Etc.) of the Credit Agreement.

Section 15             Successors and Assigns

This Guaranty shall be binding upon each Guarantor and
upon the successors and assigns of such Guarantors and shall inure to the
benefit of the Guarantied Parties and their respective successors and assigns;
all references herein to the Borrower and to the Guarantors shall be deemed to
include their respective successors and assigns.  The successors and assigns of the Guarantors
and the Borrower shall include, without limitation, their respective receivers,
trustees and debtors-in-possession. 
All references to the singular shall be deemed to include the plural
where the context so requires.

Section 16             Representations and Warranties;
Covenants

Each Guarantor hereby (a) represents and warrants
that the representations and warranties as to it made by the Borrower in Article IV (Representations and Warranties) of the
Credit Agreement are true and correct in all material respects, except to the
extent that any of such representations and warranties relate by their terms to
a prior date (in which case such representation or warranty shall be true and
correct as of such prior date) as required by 

 H-8
 

Section 3.2(b)(i)
(Conditions Precedent to Each Loan and Letter of Credit) of
the Credit Agreement and (b) agrees to take, or refrain from taking, as
the case may be, each action necessary to be taken or not taken, as the case
may be, so that no Default or Event of Default is caused by the failure to take
such action or to refrain from taking such action by such Guarantor.

Section 17             Governing Law

This Guaranty and the rights and obligations of the
parties hereto shall be governed by, and construed and interpreted in
accordance with, the law of the State of New York.

Section 18             Submission to Jurisdiction; Service
of Process

(a)           Any
legal action or proceeding with respect to this Guaranty, and any other Loan
Document, may be brought in the courts of the State of New York or of the
United States of America for the Southern District of New York, and, by
execution and delivery of this Guaranty, each Guarantor hereby accepts for
itself and in respect of its property, generally and unconditionally, the
jurisdiction of the aforesaid courts. 
The parties hereto hereby irrevocably waive any objection, including any
objection to the laying of venue or based on the grounds of forum non conveniens, that any of them may now or hereafter have to
the bringing of any such action or proceeding in such respective jurisdictions.

(b)           Each
Guarantor hereby irrevocably designates, appoints and empowers CT Corporation,
111 Eighth Avenue, 13th Floor, New York, New York 10011 (telephone number:
(212) 894-8940) (the “Process Agent”),
in the case of any suit, action or proceeding brought in the United States of
America as its designee, appointee and agent to receive, accept and acknowledge
for and on its behalf, and in respect of its property, service of any and all
legal process, summons, notices and documents that may be served in any action
or proceeding arising out of, or in connection with, this Guaranty or any other
Loan Document.  Such service may be made
by mailing (by registered or certified mail, postage prepaid) or delivering a
copy of such process to such Guarantor in care of the Process Agent at the
Process Agent’s above address, and such Guarantor hereby irrevocably authorizes
and directs the Process Agent to accept such service on its behalf.  As an alternative method of service, each
Guarantor irrevocably consents to the service of any and all process in any
such action or proceeding by the mailing (by registered or certified mail,
postage prepaid) of copies of such process to the Process Agent or such
Guarantor care of the Borrower at the Borrower’s address specified in Section 11.8 (Notices, Etc.)
of the Credit Agreement or at such other address as the Borrower may specify
pursuant to such Section 11.8.  Each Guarantor agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by
law.

(c)           Nothing
contained in this Section 18 (Submission to Jurisdiction;
Service of Process) shall affect the right of the Administrative
Agent or any other Guarantied Party to serve process in any other manner
permitted by law or commence legal proceedings or otherwise proceed against a
Guarantor in any other jurisdiction.

(d)           If
for the purposes of obtaining judgment in any court it is necessary to convert
a sum due hereunder in Dollars into another currency, the parties hereto agree,
to the fullest extent they may effectively do so, that the rate of exchange
used shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase Dollars with such other currency at the
spot rate of exchange quoted by the Administrative Agent at 

 H-9
 

11:00 a.m. (New York time) on the
Business Day preceding that on which final judgment is given, for the purchase
of Dollars, for delivery two Business Days thereafter.

Section 19             Waiver of Judicial Bond

To the fullest extent permitted by applicable law, the
Guarantor waives the requirement to post any bond that otherwise may be
required of any Guarantied Party in connection with any judicial proceeding to
enforce such Guarantied Party’s rights to payment hereunder, security interest
in or other rights to the Collateral or in connection with any other legal or
equitable action or proceeding arising out of, in connection with, or related
to this Guaranty and the Loan Documents to which it is a party.

Section 20             Certain Terms

The following rules of interpretation shall apply to
this Guaranty: (a) the terms “herein,” “hereof,” “hereto” and “hereunder” and similar terms refer to this Guaranty as a
whole and not to any particular Article, Section, subsection or clause in this
Guaranty, (b) unless otherwise indicated, references herein to an Exhibit,
Article, Section, subsection or clause refer to the appropriate Exhibit to, or
Article, Section, subsection or clause in this Guaranty and (c) the term “including” means “including without
limitation” except when used in the computation of time periods.

Section 21             Waiver of Jury Trial

Each of the Administrative Agent,
the other Guarantied Parties and each Guarantor irrevocably waives trial by
jury in any action or proceeding with respect to this Guaranty and any other
Loan Document.

Section 22             Notices

Any notice or other communication herein required or
permitted shall be given as provided in Section 11.8
(Notices, Etc.) of the Credit Agreement and, in the case of any
Guarantor, to such Guarantor in care of the Borrower.

Section 23             Severability

Wherever possible, each provision of this Guaranty
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Guaranty shall be prohibited by or
invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity without invalidating the remainder of such
provision or the remaining provisions of this Guaranty.

Section 24             Additional Guarantors

Each of the Guarantors agrees that, if, pursuant to Section 7.10(b) (Additional Collateral and Guaranties) of
the Credit Agreement, the Borrower shall be required to cause any Subsidiary
thereof that is not a Guarantor to become a Guarantor hereunder, or if for any
reason the Borrower desires any such Subsidiary to become a Guarantor
hereunder, such Subsidiary shall execute and deliver to the Administrative
Agent a Guaranty Supplement in substantially the form of Exhibit A
(Guaranty Supplement) attached hereto and shall thereafter for all
purposes be a 

 H-10
 

party hereto and have the same rights, benefits and
obligations as a Guarantor party hereto on the Closing Date.

Section 25             Collateral

Each Guarantor hereby acknowledges and agrees that its
obligations under this Guaranty are secured pursuant to the terms and
provisions of the Collateral Documents executed by it in favor of the
Administrative Agent, for the benefit of the Secured Parties, and covenants
that it shall not grant any Lien with respect to its Property in favor, or for
the benefit, of any Person other than the Administrative Agent, for the benefit
of the Secured Parties except as otherwise permitted by Section 8.2
(Liens, etc.) of the Credit Agreement.

Section 26             Costs and Expenses

In accordance with the provisions of Section 11.3 (Costs and Expenses) of the Credit Agreement,
each Guarantor agrees to pay or reimburse the Administrative Agent and each of
the other Guarantied Parties upon demand for all out-of-pocket costs and
expenses, including reasonable attorneys’ fees (including allocated costs of
internal counsel and costs of settlement), incurred by the Administrative Agent
and such other Guarantied Parties in enforcing this Guaranty against such
Guarantor or any security therefor or exercising or enforcing any other right
or remedy available in connection herewith or therewith.

Section 27             Waiver of Consequential Damages

Each Guarantor hereby irrevocably
and unconditionally waives, to the maximum extent not prohibited by law, any
right it may have to claim or recover any special, exemplary, punitive or
consequential damage in any legal action or proceeding in respect of this
Guaranty or any other Loan Document.

Section 28             Entire Agreement

This Guaranty, taken together with all of the other
Loan Documents executed and delivered by the Guarantors, represents the entire
agreement and understanding of the parties hereto and supersedes all prior
understandings, written and oral, relating to the subject matter hereof.

Section 29             Counterparts

This Guaranty may be
executed in any number of separate counterparts and by different parties in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.  Signature pages may be
detached from multiple counterparts and attached to a single counterpart so
that all signature pages are attached to the same document.  Delivery of an executed counterpart by
facsimile transmission or electronic mail shall be effective as delivery of a
manually executed counterpart.

[Signature Pages Follow]

 

 H-11

In witness whereof,
this Guaranty has been duly executed by the Guarantors as of the day and year
first set forth above.

	
  

  	
  Guarantors:

  
	
   

  	
   

  
	
   

  	
  [Name of Guarantor]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 

 

 

[SIGNATURE PAGE TO GUARANTY OF TENET HEALTHCARE CORPORATION’S CREDIT
AGREEMENT]

 

Acknowledged
and Agreed

as of the date first above written:

Citicorp
USA, Inc.

as Administrative Agent

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

 

[SIGNATURE PAGE TO GUARANTY OF TENET HEALTHCARE CORPORATION’S CREDIT
AGREEMENT]

 

Exhibit A

to

Guaranty

Form of
Guaranty Supplement

The undersigned hereby agrees to be bound as a
Guarantor for purposes of the Guaranty, dated as of November    ,
2006 (the “Guaranty”), among certain Subsidiaries
of Tenet Healthcare Corporation listed on the signature pages thereof and
acknowledged by Citicorp USA, Inc., as Administrative Agent, and the
undersigned hereby acknowledges receipt of a copy of the Guaranty.  The undersigned hereby represents and
warrants that each of the representations and warranties contained in Section 16 (Representations and Warranties; Covenants) of
the Guaranty applicable to it is true and correct on and as the date hereof as
if made on and as of such date.  Without
limiting the foregoing, the undersigned hereby absolutely, unconditionally and
irrevocably guarantees the payment and performance of all Obligations, to the
extent provided therefor in Sections 1 and 2 of the Guaranty.  Capitalized terms used herein but not defined
herein are used with the meanings given them in the Guaranty.

In witness whereof,
the undersigned has caused this Guaranty Supplement to be duly executed and
delivered as of                  ,
    .

	
  

  	
  [Name of Guarantor]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Acknowledged
and Agreed

as of the date first above written:

Citicorp
USA, Inc.

as Administrative Agent

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

EXHIBIT I

 

PLEDGE AND SECURITY
AGREEMENT

Dated as of November 16,
2006

among

Tenet Healthcare Corporation

as a Grantor

and

Each
Other Grantor

From Time to Time Party Hereto

and

Citicorp USA, Inc.

as Administrative Agent

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, New York 10153-0119

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  Article I

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.1

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.2

  	
  Certain Other Terms

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article II

  	
   

  	
  Grant of Security Interest

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.1

  	
  Collateral

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.2

  	
  Grant of Security Interest in Collateral

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article III

  	
   

  	
  Representations and Warranties

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.1

  	
  Title; No Other Liens

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.2

  	
  Perfection and Priority

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.3

  	
  Jurisdiction of Organization; Chief Executive Office

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.4

  	
  Accounts

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.5

  	
  Deposit Accounts

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article IV

  	
   

  	
  Covenants

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.1

  	
  Generally

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.2

  	
  Maintenance of Perfected Security Interest; Further
  Documentation

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.3

  	
  Changes in Locations, Name, Etc

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.4

  	
  Pledged Collateral

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.5

  	
  Accounts

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.6

  	
  Payment of Obligations

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article V

  	
   

  	
  Remedial Provisions

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.1

  	
  Code and Other Remedies

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.2

  	
  Accounts and Payments in Respect of General
  Intangibles

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.3

  	
  Pledged Collateral

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.4

  	
  Proceeds to be Turned Over To Administrative Agent

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.5

  	
  Deficiency

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article VI

  	
   

  	
  The Administrative Agent

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.1

  	
  Administrative Agent’s Appointment as
  Attorney-in-Fact

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.2

  	
  Duty of Administrative Agent

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.3

  	
  Authorization of Financing Statements

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.4

  	
  Authority of Administrative Agent

  	
   

  	
  12

  
							

 i
 

TABLE OF CONTENTS

(continued)

	
  

  	
   

  	
  

  	
   

  	
  Page

  
	
  Article VII

  	
  Miscellaneous

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.1

  	
  Amendments in Writing

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.2

  	
  Notices

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.3

  	
  No Waiver by Course of Conduct; Cumulative Remedies

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.4

  	
  Successors and Assigns

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.5

  	
  Counterparts

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.6

  	
  Severability

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.7

  	
  Section Headings

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.8

  	
  Entire Agreement

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.9

  	
  Governing Law

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.10

  	
  Additional Grantors

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.11

  	
  Release of Collateral

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.12

  	
  Reinstatement

  	
   

  	
  15

  
						

 ii
 

TABLE OF CONTENTS

(continued)

ANNEXES AND SCHEDULES

	
  Annex 1-A

  	
   

  	
  Form of Deposit Account Control Agreement

  
	
  Annex 1-B

  	
   

  	
  Form of Program Account Agreement

  
	
  Annex 2

  	
   

  	
  Form of Pledge Amendment

  
	
  Annex 3

  	
   

  	
  Form of Joinder Agreement

  
	
   

  	
   

  	
   

  
	
  Schedule 1

  	
   

  	
  Jurisdiction of Organization; Principal Executive
  Office

  
	
  Schedule 2

  	
   

  	
  Pledged Collateral

  
	
  Schedule 3

  	
   

  	
  Filings

  
	
  Schedule 4

  	
   

  	
  Bank Accounts

  

 

 iii

Pledge and Security Agreement,dated
as of November 16, 2006, by Tenet
Healthcare Corporation (the “Borrower”) and
each of the other entities listed on the signature pages hereof or that becomes
a party hereto pursuant to Section 7.10
(Additional Grantors) (each a “Grantor” and,
collectively, the “Grantors”), in
favor of Citicorp USA, Inc. (“CUSA”),
as agent  (in such capacity, the “Administrative Agent”) for the Secured Parties (as defined
in the Credit Agreement referred to below).

W I T N E S S E T H:

Whereas, pursuant to
the Credit Agreement, dated as of November 16, 2006 (as the same may be
amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the Lenders and
Issuers party thereto and CUSA, as agent for the Lenders and Issuers, the
Lenders and the Issuers have severally agreed to make extensions of credit to
the Borrower upon the terms and subject to the conditions set forth therein;

Whereas, the Grantors
other than the Borrower are party to the Guaranty pursuant to which they have
guaranteed the Obligations (as defined in the Credit Agreement); and

Whereas, it is a
condition precedent to the obligation of the Lenders and the Issuers to make
their respective extensions of credit to the Borrower under the Credit
Agreement that the Grantors shall have executed and delivered this Agreement to
the Administrative Agent;

Now,
therefore, in consideration of the premises and to induce the Lenders,
the Issuers and the Administrative Agent to enter into the Credit Agreement and
to induce the Lenders and the Issuers to make their respective extensions of
credit to the Borrower thereunder, each Grantor hereby agrees with the
Administrative Agent as follows:

ARTICLE
I                              DEFINED
TERMS

Section 1.1                                   Definitions

(a)           Unless otherwise
defined herein, terms defined in the Credit Agreement and used herein have the
meanings given to them in the Credit Agreement.

(b)           Terms used herein
without definition that are defined in the UCC have the meanings given to them
in the UCC, including the following terms (which are capitalized herein):

“Account Debtor”

“Chattel Paper”

“Deposit Account”

“General Intangible”

“Health-care Insurance Receivables”

“Instruments”

“Payment Intangibles”

“Proceeds”

“Supporting Obligations”

(c)           The following terms
shall have the following meanings:

 I-1
 

“Account” means,
collectively and without duplication: (i) any “account”
(as defined in the UCC), any accounts receivable (whether in the form of
payments for services rendered or goods sold), any Health-care Insurance
Receivables, any Payment Intangibles and all other rights to payment and/or
reimbursement of every kind and description, whether or not earned by
performance, (ii) all books and records pertaining to the foregoing, (iii) all
Supporting Obligations in respect of the foregoing and (iv) all Proceeds of any
of the foregoing; provided, however, that “Accounts”
shall not include (a) rights to payment in respect of (1) medical office
building leases to physicians, (2) physician income guarantees, or (3) Medicaid
disproportionate share receivables, (b) any notes owed to the Borrower or any
of the Grantors, which evidences Indebtedness other than for services rendered
or goods sold and (c) Proceeds of assets described in clause (a) or (b) above.

“Additional Pledged
Collateral” means any Pledged Collateral acquired by any Grantor
after the date hereof and in which a security interest is granted pursuant to Section 2.2 (Grant of Security Interest in Collateral),
including, to the extent a security interest is granted therein pursuant to Section 2.2 (Grant of Security Interest in Collateral),
all interest, cash, Instruments and other property or Proceeds from time to
time received, receivable or otherwise distributed in respect of or in exchange
for any of the foregoing.  “Additional Pledged Collateral” may be General Intangibles or
Instruments.

“Agreement”
means this Pledge and Security Agreement.

“Collateral” has
the meaning specified in Section 2.1
(Collateral).

“Collection Deposit Account
Agreement” means an agreement, substantially in the form of Exhibit 1-B (Form of Collection Deposit
Account Agreement) or otherwise in form and substance reasonably
satisfactory to the Administrative Agent, executed by the relevant Grantor, the
Administrative Agent and the relevant financial institution.

“Deposit Account Control
Agreement” means a letter agreement, substantially in the form of Annex 1-A (Form of Deposit Account
Control Agreement) (with such changes as may be agreed to by the
Administrative Agent), executed by the relevant Grantor, the Administrative
Agent and the relevant financial institution.

“Excluded Property”
means, collectively, any permit, lease, license, contract, instrument or other
agreement held by any Grantor that prohibits or requires the consent of any
Person other than the Borrower and its Affiliates as a condition to the
creation by such Grantor of a Lien thereon, or any permit, lease, license
contract or other agreement held by any Grantor to the extent that any
Requirement of Law applicable thereto prohibits the creation of a Lien thereon,
but only, in each case, to the extent, and for so long as, such prohibition is
not terminated or rendered unenforceable or otherwise deemed ineffective by the
UCC or any other Requirement of Law; provided, however, “Excluded Property”
shall not include any Proceeds, substitutions or replacements of Excluded
Property (unless such Proceeds, substitutions or replacements would constitute
Excluded Property).

“Pledged Collateral”
means, collectively, the Instruments and all Chattel Paper or certificates
representing such Instruments, to the extent such Instruments or Chattel Paper
constitute Collateral.  Pledged
Collateral may be General Intangibles or Instruments.

 I-2
 

“Program Deposit Account”
means a Deposit Account into which any Program Accounts or the Proceeds thereof
are paid or credited.

“UCC” means the
Uniform Commercial Code as from time to time in effect in the State of New
York; provided, however,
that, in the event that, by reason of mandatory provisions of law, any of the
attachment, perfection or priority of the Administrative Agent’s and the
Secured Parties’ security interest in any Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of New
York, the term “UCC” shall mean the Uniform
Commercial Code as in effect in such other jurisdiction for purposes of the
provisions hereof relating to such attachment, perfection or priority and for
purposes of definitions related to such provisions.

Section 1.2                                   Certain
Other Terms

(a)           In this Agreement,
in the computation of periods of time from a specified date to a later
specified date, the word “from” means “from
and including” and the words “to” and “until” each mean “to but excluding” and the word “through” means “to and including.”

(b)           The terms “herein,” “hereof,” “hereto” and “hereunder” and
similar terms refer to this Agreement as a whole and not to any particular
Article, Section, subsection or clause in this Agreement.

(c)           References herein to
an Annex, Schedule, Article, Section, subsection or clause refer to the
appropriate Annex or Schedule to, or Article, Section, subsection or clause in
this Agreement.

(d)           The meanings given
to terms defined herein shall be equally applicable to both the singular and plural
forms of such terms.

(e)           Where the context
requires, provisions relating to any Collateral, when used in relation to a
Grantor, shall refer to such Grantor’s Collateral or any relevant part thereof.

(f)            Any reference in
this Agreement to a Loan Document shall include all appendices, exhibits and
schedules thereto, and, unless specifically stated otherwise all amendments,
restatements, supplements or other modifications thereto, and as the same may
be in effect at any time such reference becomes operative.

(g)           The term “including” means “including without limitation” except when
used in the computation of time periods.

(h)           The terms “Lender,” “Issuer,” “Administrative Agent” and “Secured
Party” include their respective successors.

(i)            References in this Agreement
to any statute shall be to such statute as amended or modified and in effect
from time to time.

 I-3
 

ARTICLE II                          GRANT OF
SECURITY INTEREST

Section 2.1                                   Collateral

For the purposes of this Agreement, all of the
following property now owned or at any time hereafter acquired by a Grantor or
in which a Grantor now has or at any time in the future may acquire any right,
title or interests is collectively referred to as the “Collateral”:

(a)           all Accounts and all
other “accounts” (as defined in the UCC) at any
time deposited in or credited to any Approved Deposit Account or Collection
Deposit Account;

(b)           all other security
interests or Liens and property subject thereto from time to time purporting to
secure the payment of any Accounts;

(c)           all rights to payment
of any interest or finance charges and other obligations related to any
Accounts;

(d)           all Chattel Paper,
General Intangibles, Instruments and all documents, books and records
pertaining to any Accounts; and

(e)           to the extent not
otherwise included, all Proceeds of the foregoing, as well as any Deposit
Accounts into which proceeds of Accounts are deposited;

provided, however, that “Collateral” shall not include any Excluded Property; and provided, further, that
if and when any property shall cease to be Excluded Property, to the extent
that such property that has ceased to be Excluded Property qualifies as
Collateral under this section, such property shall be deemed at all times from
and after the date hereof to constitute Collateral.

Section 2.2                                   Grant
of Security Interest in Collateral

Each Grantor, as collateral security for the full,
prompt and complete payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of the Secured Obligations of such
Grantor, hereby mortgages, pledges and hypothecates to the Administrative Agent
for the benefit of the Secured Parties, and grants to the Administrative Agent
for the benefit of the Secured Parties a lien on and security interest in, all
of its right, title and interest in, to and under the Collateral of such
Grantor; provided, however,
that, if and when any property that at any time constituted Excluded Property
becomes Collateral, the Administrative Agent shall have, and at all times from
and after the date hereof be deemed to have had, a security interest in such
property.

ARTICLE
III                      Representations and Warranties

To induce the Lenders, the Issuers and the
Administrative Agent to enter into the Credit Agreement, each Grantor hereby
represents and warrants each of the following to the Administrative Agent, the
Lenders, the Issuers and the other Secured Parties:

Section 3.1                                   Title;
No Other Liens

Except for the Lien granted to the Administrative
Agent pursuant to this Agreement and the other Liens permitted to exist on the
Collateral under the Credit Agreement, 

 I-4
 

such Grantor (a) is the record and beneficial owner of
the Pledged Collateral pledged by it hereunder constituting Instruments and (b)
has rights in or the power to transfer each other item of Collateral in which a
Lien is granted by it hereunder, free and clear of any other Lien.

Section 3.2                                   Perfection
and Priority

The security interest granted pursuant to this
Agreement shall constitute a valid and continuing perfected security interest
in favor of the Administrative Agent in the Collateral for which perfection is
governed by the UCC upon (i) in the case of all Collateral in which a
security interest may be perfected by filing a financing statement under the
UCC, the completion of the filings and other actions specified on Schedule 3  (Filings) (which, in the case of all
filings and other documents referred to on such schedule, have been obtained by
or delivered to the Administrative Agent in completed and duly executed form),
(ii) the delivery to the Administrative Agent of all Collateral consisting of
Instruments, properly endorsed for transfer to the Administrative Agent or in
blank and (iii) the execution of Deposit Account Control Agreements with
respect to all Deposit Accounts of a Grantor in which a security interest is
granted hereunder.  Such security
interest shall be prior to all other Liens on the Collateral except for
Customary Permitted Liens having priority over the Administrative Agent’s Lien
by operation of law or otherwise as permitted under the Credit Agreement.

Section 3.3                                   Jurisdiction
of Organization; Chief Executive Office

Such Grantor’s
jurisdiction of organization, legal name, organizational identification number,
if any, and the location of such Grantor’s chief executive office or sole place
of business, in each case as of the date hereof, is specified on Schedule 1 (Jurisdiction of Organization; Principal Executive
Office).

Section 3.4                                   Accounts

No amount payable to such Grantor under or in
connection with any Account is evidenced by any Instrument or Chattel Paper
that has not been delivered to the Administrative Agent, properly endorsed for
transfer, to the extent delivery is required by Section 4.4
(Pledged Collateral).

Section 3.5                                   Deposit
Accounts

(a)           The only Deposit
Accounts into which proceeds of Accounts or other assets otherwise constituting
Collateral hereunder maintained by any Grantor on the date hereof are those
listed on Schedule 4  (Bank
Accounts), which sets forth such information separately for each
Grantor.

(b)           (i) The only Program
Deposit Accounts maintained by any Grantor on the date hereof are those listed
on Schedule 4 (Bank
Accounts), which sets forth such information separately for each
Grantor.

(c)           Within 60 calendar
days after the Closing Date (or such later date as the Administrative Agent
may, in its sole discretion, consent in writing) such Grantor shall deliver to
the Administrative Agent with respect of each Collection Deposit Account of
such Grantor, a Collection Deposit Account Agreement.

 I-5
 

ARTICLE
IV                     Covenants

Each Grantor agrees with the Administrative Agent to
the following, as long as any Obligation or Revolving Credit Commitment remains
outstanding and, in each case, unless the Requisite Lenders otherwise consent
in writing:

Section 4.1                                   Generally

Such Grantor shall (a) except for the security
interest created by this Agreement, not create or suffer to exist any Lien upon
or with respect to any Collateral, except Liens permitted under Section 8.2 (Liens, Etc.) of the Credit Agreement,
(b) not use or permit any Collateral to be used unlawfully or in violation
of any provision of this Agreement, any other Loan Document, any Related
Document, any Requirement of Law or any policy of insurance covering the
Collateral and (c) not enter into any agreement or undertaking restricting
the right or ability of such Grantor or the Administrative Agent to sell,
assign or transfer any Collateral if such restriction would have a Material
Adverse Effect.

Section 4.2                                   Maintenance
of Perfected Security Interest; Further Documentation

(a)           Such Grantor shall
maintain the security interest created by this Agreement as a perfected
security interest having at least the priority described in Section 3.2 (Perfection and Priority) and
Section 2.2 and shall defend such security interest and such priority against
the claims and demands of all Persons.

(b)           At any time and from
time to time, upon the written request of the Administrative Agent, and at the
sole expense of such Grantor, such Grantor shall promptly and duly execute and
deliver, and have recorded, such further instruments and documents and take
such further action as the Administrative Agent may reasonably request for the
purpose of obtaining or preserving the full benefits of this Agreement and of
the rights and powers herein granted, including the filing of any financing or
continuation statement under the UCC (or other similar laws) in effect in any
jurisdiction with respect to the security interest created hereby and the
execution and delivery of Deposit Account Control Agreements in respect of Deposit
Accounts (other than Program Deposit Accounts) constituting Collateral
hereunder.

Section 4.3                                   Changes
in Locations, Name, Etc.

(a)           Except upon five
Business Days’ prior written notice to the Administrative Agent and delivery to
the Administrative Agent of all additional financing statements and other
documents reasonably requested by the Administrative Agent to maintain the
validity, perfection and priority of the security interests provided for
herein, such Grantor shall not do any of the following:

(i)            change
its location (as determined in accordance with Section 9-307 of the UCC), in
each case from that referred to in Section 3.3
(Jurisdiction of Organization; Chief Executive Office); or

(ii)           change
its legal name or organizational identification number, if any, or corporation,
limited liability company or other organizational structure to such an extent 

 I-6
 

that any financing statement filed in connection with
this Agreement would become misleading.

(b)           Such Grantor shall
keep and maintain at its own cost and expense satisfactory and complete records
of the Collateral, including a record of all payments received and all credits
granted with respect to the Collateral and all other dealings with the
Collateral.

Section 4.4                                   Pledged
Collateral

(a)           Such Grantor shall
deliver to the Administrative Agent, within five Business Days from the receipt
thereof, all certificates and Instruments representing or evidencing any
Pledged Collateral (including Additional Pledged Collateral), whether now
existing or hereafter acquired, in suitable form for transfer by delivery or,
as applicable, accompanied by such Grantor’s endorsement, where necessary, or
duly executed instruments of transfer or assignment in blank, all in form and
substance satisfactory to the Administrative Agent, together, in respect of any
Additional Pledged Collateral, with a Pledge Amendment, duly executed by the
Grantor, in substantially the form of Annex 2 (Form of
Pledge Amendment), an acknowledgment and agreement to a Joinder
Agreement duly executed by the Grantor, in substantially the form in the form
of Annex 3 (Form of Joinder Agreement),
or such other documentation acceptable to the Administrative Agent.  Such Grantor authorizes the Administrative
Agent to attach each Pledge Amendment to this Agreement.  The Administrative Agent shall have the
right, at any time in its discretion and without notice to the Grantor, to
transfer to or to register in its name or in the name of its nominees any
Pledged Collateral.

(b)           Any sums paid upon
or in respect of any Pledged Collateral upon the liquidation or dissolution of
any issuer of any Pledged Collateral, any distribution of capital made on or in
respect of any Pledged Collateral or any property distributed upon or with
respect to any Pledged Collateral pursuant to the recapitalization or
reclassification of the capital of any issuer of Pledged Collateral or pursuant
to the reorganization thereof shall, unless otherwise subject to a perfected
security interest in favor of the Administrative Agent, be delivered to the
Administrative Agent to be held by it hereunder as additional collateral
security for the Secured Obligations.  If
any sum of money or property so paid or distributed in respect of any Pledged
Collateral shall be received by such Grantor, such Grantor shall, until such
money or property is paid or delivered to the Administrative Agent, hold such
money or property in trust for the Administrative Agent, segregated from other
funds of such Grantor, as additional security for the Secured Obligations.

Section 4.5                                   Accounts

(a)           Such Grantor shall
execute and deliver a Program Account Agreement with respect to each Program
Deposit Accounts of such Grantor.

(b)           Such Grantor shall
not, other than in the ordinary course of business, (i) grant any extension
of the time of payment of any Account, (ii) compromise or settle any
Account for less than the full amount thereof, (iii) release, wholly or
partially, any Person liable for the payment of any Account, (iv) allow
any credit or discount on any Account or (v) amend, supplement or modify
any Account in any manner that could adversely affect the value thereof.

 

 I-7

Section 4.6                                   Payment
of Obligations

Such Grantor shall pay and discharge or otherwise
satisfy at or before maturity or before they become delinquent, as the case may
be, all taxes, assessments and governmental charges or levies imposed upon the
Collateral or in respect of income or profits therefrom, as well as all claims
of any kind (including claims for labor, materials and supplies) against or
with respect to the Collateral, except that no such charge need be paid if the
amount or validity thereof is currently being contested in good faith by
appropriate proceedings, reserves in conformity with GAAP with respect thereto
have been provided on the books of such Grantor and such proceedings could not
reasonably be expected to result in the sale, forfeiture or loss of any
material portion of the Collateral or any interest therein.

ARTICLE V                                                      Remedial
Provisions

Section 5.1                                   Code
and Other Remedies

During the continuance of an Event of Default, the
Administrative Agent may exercise, in addition to all other rights and remedies
granted to it in this Agreement and in any other instrument or agreement
securing, evidencing or relating to the Secured Obligations, all rights and
remedies of a secured party under the UCC or any other applicable law.  Without limiting the generality of the
foregoing, the Administrative Agent, without demand of performance or other
demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law referred to below) to or upon any Grantor or any other
Person (all and each of which demands, defenses, advertisements and notices are
hereby waived), may in such circumstances forthwith collect, receive,
appropriate and realize upon any Collateral, and may forthwith sell, lease,
assign, give option or options to purchase, or otherwise dispose of and deliver
any Collateral (or contract to do any of the foregoing), in one or more parcels
at public or private sale or sales, at any exchange, broker’s board or office
of the Administrative Agent or any Lender or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit
risk.  The Administrative Agent shall have
the right upon any such public sale or sales, and, to the extent permitted by
the UCC and other applicable law, upon any such private sale or sales, to
purchase the whole or any part of the Collateral so sold, free of any right or
equity of redemption of any Grantor, which right or equity is hereby waived and
released.  Each Grantor further agrees,
at the Administrative Agent’s request, to assemble the Collateral and make it
available to the Administrative Agent at places that the Administrative Agent
shall reasonably select, whether at such Grantor’s premises or elsewhere.  The Administrative Agent shall apply the net
proceeds of any action taken by it pursuant to this Section 5.1,
after deducting all reasonable and actual costs and expenses of every kind
incurred in connection therewith or incidental to the care or safekeeping of
any Collateral or in any way relating to the Collateral or the rights of the
Administrative Agent and any other Secured Party hereunder, including
reasonable attorneys’ fees and disbursements, to the payment in whole or in
part of the Secured Obligations, in such order as the Credit Agreement shall
prescribe, and only after such application and after the payment by the
Administrative Agent of any other amount required by any provision of law, need
the Administrative Agent account for the surplus, if any, to any Grantor.  To the extent permitted by applicable law,
each Grantor waives all claims, damages and demands it may acquire against the
Administrative Agent or any other Secured Party arising out of the exercise by
them of any rights hereunder.  If any
notice of a proposed sale or other disposition of Collateral shall be 

 I-8
 

required by law, such notice shall be deemed
reasonable and proper if given at least 10 days before such sale or other
disposition.

Section 5.2                                   Accounts
and Payments in Respect of General Intangibles

(a)           In addition to, and
not in substitution for, any similar requirement in the Credit Agreement, if
required by the Administrative Agent at any time during the continuance of an
Event of Default, any payment of Accounts (other than Program Accounts), when
collected by any Grantor, shall be forthwith (and, in any event, within two
Business Days) deposited by such Grantor in the exact form received, duly
indorsed by such Grantor to the Administrative Agent, in an Approved Deposit
Account or a Cash Collateral Account, subject to withdrawal by the
Administrative Agent as provided in Section 5.4 (Proceeds
to be Turned Over To Administrative Agent).  Until so turned over or turned over, such
payment shall be held by such Grantor in trust for the Administrative Agent,
segregated from other funds of such Grantor. 
Each such deposit of Proceeds of Accounts shall be accompanied by a
report identifying in reasonable detail the nature and source of the payments
included in the deposit.

(b)           At the
Administrative Agent’s request, during the continuance of an Event of Default,
each Grantor shall deliver to the Administrative Agent all original and other
documents evidencing, and relating to, the agreements and transactions that
gave rise to the Accounts, including all original orders, invoices and shipping
receipts.

(c)           The Administrative
Agent may, without notice, at any time during the continuance of an Event of
Default, limit or terminate the authority of a Grantor to collect its Accounts
(other than Program Accounts) or amounts due under General Intangibles or any
thereof.

(d)           The Administrative
Agent in its own name or in the name of others may at any time during the
continuance of an Event of Default communicate with Account Debtors to verify
with them to the Administrative Agent’s satisfaction the existence, amount and
terms of any Account or amounts due under any General Intangible.

(e)           Upon the request of
the Administrative Agent at any time during the continuance of an Event of
Default, each Grantor shall notify Account Debtors that the Accounts (other
than such Grantor’s Program Accounts) have been collaterally assigned to the
Administrative Agent and that payments in respect thereof shall be made
directly to the Administrative Agent.  In
addition, subject to any applicable law, the Administrative Agent may at any
time during the continuance of an Event of Default enforce such Grantor’s
rights against such Account Debtors.

(f)            Anything herein to
the contrary notwithstanding, each Grantor shall remain liable under each of
the Accounts and payments in respect of General Intangibles to observe and
perform all the conditions and obligations to be observed and performed by it
thereunder, all in accordance with the terms of any agreement giving rise
thereto.  Neither the Administrative
Agent nor any other Secured Party shall have any obligation or liability under
any agreement giving rise to an Account by reason of or arising out of this
Agreement or the receipt by the Administrative Agent nor any other Secured
Party of any payment relating thereto, nor shall the Administrative Agent nor
any other Secured Party be obligated in any manner to perform any obligation of
any Grantor under or pursuant to any agreement giving rise to an Account, to
make any payment, to make any inquiry as to the nature or the sufficiency of
any 

 I-9
 

payment
received by it or as to the sufficiency of any performance by any party
thereunder, to present or file any claim, to take any action to enforce any performance
or to collect the payment of any amounts that may have been assigned to it or
to which it may be entitled at any time or times.

Section 5.3                                   Pledged
Collateral

(a)           During the
continuance of an Event of Default, upon notice by the Administrative Agent to
the relevant Grantor or Grantors, the Administrative Agent shall have the right
to receive any Proceeds of the Pledged Collateral and make application thereof
to the Obligations in the order set forth in the Credit Agreement; provided, however, that
the Administrative Agent shall have no duty to any Grantor to exercise any such
right and shall not be responsible for any failure to do so or delay in so
doing.

(b)           Each Grantor hereby
expressly authorizes and instructs each issuer of any Pledged Collateral
pledged hereunder by such Grantor to (i) comply with any instruction
received by it from the Administrative Agent in writing that (A) states
that an Event of Default has occurred and is continuing and (B) is
otherwise in accordance with the terms of this Agreement, without any other or
further instructions from such Grantor, and each Grantor agrees that such
issuer shall be fully protected in so complying and (ii) unless otherwise
expressly permitted hereby, pay any payment with respect to the Pledged
Collateral directly to the Administrative Agent.

Section 5.4                                   Proceeds
to be Turned Over To Administrative Agent

Unless otherwise expressly provided in the Credit
Agreement, all Proceeds received by the Administrative Agent hereunder in cash
or Cash Equivalents shall be held by the Administrative Agent in a Cash
Collateral Account.  All Proceeds while
held by the Administrative Agent in a Cash Collateral Account (or by such
Grantor in trust for the Administrative Agent) shall continue to be held as
collateral security for the Secured Obligations and shall not constitute
payment thereof until applied as provided in the Credit Agreement.

Section 5.5                                   Deficiency

Each Grantor shall remain liable for any deficiency if
the proceeds of any sale or other disposition of the Collateral are
insufficient to pay the Secured Obligations and the fees and disbursements of
any attorney employed by the Administrative Agent or any other Secured Party to
collect such deficiency.

ARTICLE VI                                                  The
Administrative Agent

Section 6.1                                   Administrative
Agent’s Appointment as Attorney-in-Fact

(a)           Each Grantor hereby
irrevocably constitutes and appoints the Administrative Agent and any officer
or agent thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of such Grantor and in the name of such Grantor or in its own name, for
the purpose of carrying out the terms of this Agreement, to take any
appropriate action and to execute any document or instrument that may be
necessary or desirable to accomplish the purposes of this Agreement, and,
without limiting the generality of the foregoing, each Grantor hereby gives the
Administrative 

 I-10
 

Agent the
power and right, on behalf of such Grantor, without notice to or assent by such
Grantor, to do any of the following:

(i)            in
the name of such Grantor or its own name, or otherwise, take possession of and
indorse and collect any check, draft, note, acceptance or other instrument for
the payment of moneys due under any Account or with respect to any other
Collateral and file any claim or take any other action or proceeding in any
court of law or equity or otherwise deemed appropriate by the Administrative
Agent for the purpose of collecting any such moneys due under any Account or
with respect to any other Collateral whenever payable;

(ii)           pay
or discharge taxes and Liens levied or placed on or threatened against the
Collateral or effect any repair thereof;

(iii)          execute,
in connection with any sale provided for in Section 5.1 (Code and
Other Remedies), any endorsement, assignment or other instrument of
conveyance or transfer with respect to the Collateral; or

(iv)          (A) direct
any party liable for any payment under any Collateral to make payment of any
moneys due or to become due thereunder directly to the Administrative Agent or
as the Administrative Agent shall direct, (B) ask or demand for, collect,
and receive payment of and receipt for, any moneys, claims and other amounts
due or to become due at any time in respect of or arising out of any
Collateral, (C) sign and indorse any invoice, freight or express bill,
bill of lading, storage or warehouse receipt, draft against debtors,
assignment, verification, notice and other document in connection with any
Collateral, (D) commence and prosecute any suit, action or proceeding at
law or in equity in any court of competent jurisdiction to collect any
Collateral and to enforce any other right in respect of any Collateral,
(E) defend any suit, action or proceeding brought against such Grantor
with respect to any Collateral, (F) settle, compromise or adjust any such
suit, action or proceeding and, in connection therewith, give such discharges
or releases as the Administrative Agent may deem appropriate and (G) generally,
sell, transfer, pledge and make any agreement with respect to or otherwise deal
with any Collateral as fully and completely as though the Administrative Agent
were the absolute owner thereof for all purposes, and do, at the Administrative
Agent’s option and such Grantor’s expense, at any time, or from time to time,
all acts and things that the Administrative Agent deems necessary to protect,
preserve or realize upon the Collateral and the Administrative Agent’s and the
other Secured Parties’ security interests therein and to effect the intent of
this Agreement, all as fully and effectively as such Grantor might do.

Anything in this clause (a)
to the contrary notwithstanding, the Administrative Agent agrees that it shall
not exercise any right under the power of attorney provided for in this clause (a) unless an Event of Default shall be
continuing.

(b)           If any Grantor fails
to perform or comply with any of its agreements contained herein, the
Administrative Agent, at its option, but without any obligation so to do, may
perform or comply, or otherwise cause performance or compliance, with such
agreement.

(c)           The expenses of the
Administrative Agent incurred in connection with actions undertaken as provided
in this Section 6.1, together with interest
thereon at a rate per 

 I-11
 

annum equal to
the rate per annum at which interest would then be payable on past due
Revolving Loans that are Base Rate Loans under the Credit Agreement, from the
date of payment by the Administrative Agent to the date reimbursed by the
relevant Grantor to the extent such expenses are reimbursable in accordance
with the terms of Credit Agreement, shall be payable by such Grantor to the
Administrative Agent on demand.

(d)           Each Grantor hereby
ratifies all that said attorneys shall lawfully do or cause to be done during
the continuance of an Event of Default by virtue hereof.  All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable
until this Agreement is terminated and the security interests created hereby
are released.

Section 6.2                                   Duty
of Administrative Agent

The Administrative Agent’s sole duty with respect to
the custody, safekeeping and physical preservation of the Collateral in its
possession shall be to deal with it in the same manner as the Administrative
Agent deals with similar property for its own account.  Neither the Administrative Agent, any other
Secured Party nor any of their respective officers, directors, employees or
agents shall be liable for failure to demand, collect or realize upon any
Collateral or for any delay in doing so or shall be under any obligation to
sell or otherwise dispose of any Collateral upon the request of any Grantor or
any other Person or to take any other action whatsoever with regard to any
Collateral.  The powers conferred on the
Administrative Agent hereunder are solely to protect the Administrative Agent’s
interest in the Collateral and shall not impose any duty upon the
Administrative Agent or any other Secured Party to exercise any such
powers.  The Administrative Agent and the
other Secured Parties shall be accountable only for amounts that they actually
receive as a result of the exercise of such powers, and neither they nor any of
their respective officers, directors, employees or agents shall be responsible
to any Grantor for any act or failure to act hereunder, except for their own
gross negligence or willful misconduct.

Section 6.3                                   Authorization
of Financing Statements

Each Grantor authorizes the Administrative Agent and
its Affiliates, counsel and other representatives, at any time and from time to
time, to file or record financing statements, amendments to financing
statements, and other filing or recording documents or instruments with respect
to the Collateral in such form and in such offices as the Administrative Agent
reasonably determines appropriate to perfect the security interests of the
Administrative Agent under this Agreement. 
Each Grantor hereby also authorizes the Administrative Agent and its
Affiliates, counsel and other representatives, at any time and from time to
time, to file continuation statements with respect to previously filed
financing statements.  A photographic or
other reproduction of this Agreement shall be sufficient as a financing statement
or other filing or recording document or instrument for filing or recording in
any jurisdiction.

Section 6.4                                   Authority
of Administrative Agent

Each Grantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Agreement with respect
to any action taken by the Administrative Agent or the exercise or non-exercise
by the Administrative Agent of any option, voting right, request, judgment or
other right or remedy provided for herein or resulting or arising out of this
Agreement shall, as between the Administrative Agent and the other Secured
Parties, 

 I-12
 

be governed by the Credit Agreement and by such other
agreements with respect thereto as may exist from time to time among them, but,
as between the Administrative Agent and the Grantors, the Administrative Agent
shall be conclusively presumed to be acting as agent for the Administrative
Agent and the other Secured Parties with full and valid authority so to act or
refrain from acting, and no Grantor shall be under any obligation, or
entitlement, to make any inquiry respecting such authority.

ARTICLE VII                                              Miscellaneous

Section 7.1                                   Amendments
in Writing

None of the terms or provisions of this Agreement may
be waived, amended, supplemented or otherwise modified except in accordance
with Section 11.1 (Amendments, Waivers, Etc.)
of the Credit Agreement; provided, however, that annexes to this Agreement may be supplemented
(but no existing provisions may be modified and no Collateral may be released)
through Pledge Amendments and Joinder Agreements, in substantially the form of Annex 2 (Form of Pledge Amendment) and Annex 3 (Form of Joinder Agreement) respectively, in
each case duly executed by the Administrative Agent and each Grantor directly
affected thereby.

Section 7.2                                   Notices

All notices, requests and demands to or upon the
Administrative Agent or any Grantor hereunder shall be effected in the manner
provided for in Section 11.8 (Notices, Etc.) of
the Credit Agreement; provided, however, that any such notice, request or demand to or upon
any Grantor shall be addressed to the Borrower’s notice address set forth in
such Section 11.8.

Section 7.3                                   No
Waiver by Course of Conduct; Cumulative Remedies

Neither the Administrative Agent nor any other Secured
Party shall by any act (except by a written instrument pursuant to Section 7.1 (Amendments in Writing)), delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default.  No failure to exercise, nor any delay in
exercising, on the part of the Administrative Agent or any other Secured Party,
any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.  A waiver by the Administrative Agent or any
other Secured Party of any right or remedy hereunder on any one occasion shall
not be construed as a bar to any right or remedy that the Administrative Agent
or such other Secured Party would otherwise have on any future occasion.  The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

Section 7.4                                   Successors
and Assigns

This Agreement shall be binding upon the successors
and assigns of each Grantor and shall inure to the benefit of the
Administrative Agent and each other Secured Party and their successors and
assigns; provided, however,
that no Grantor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the
Administrative Agent.

 I-13
 

Section 7.5            Counterparts

This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts (including by
telecopy), each of which when so executed shall be deemed to be an original and
all of which taken together shall constitute one and the same agreement.  Signature pages may be detached from multiple
counterparts and attached to a single counterpart so that all signature pages
are attached to the same document. 
Delivery of an executed counterpart by telecopy shall be effective as
delivery of a manually executed counterpart.

Section 7.6                                   Severability

Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

Section 7.7                                   Section
Headings

The Article and Section titles contained in this
Agreement are, and shall be, without substantive meaning or content of any kind
whatsoever and are not part of the agreement of the parties hereto.

Section 7.8                                   Entire
Agreement

This Agreement together with the other Loan Documents
represents the entire agreement of the parties and supersedes all prior
agreements and understandings relating to the subject matter hereof.

Section 7.9                                   Governing
Law

This Agreement and the rights and obligations of the
parties hereto shall be governed by, and construed and interpreted in
accordance with, the law of the State of New York.

Section 7.10                            Additional
Grantors

If, pursuant to Section 7.10
(Additional Collateral and Guaranties) of the Credit Agreement, the
Borrower shall be required to cause any Subsidiary that is not a Grantor to
become a Grantor hereunder, such Subsidiary shall execute and deliver to the
Administrative Agent a Joinder Agreement substantially in the form of Annex 3 (Form of Joinder Agreement) and shall
thereafter for all purposes be a party hereto and have the same rights,
benefits and obligations as a Grantor party hereto on the Closing Date.

Section 7.11                            Release
of Collateral

(a)           At the time provided
in Section 10.8(b)(i) (Concerning the Collateral and the Collateral Documents) of
the Credit Agreement, the Collateral shall be released from the Lien created
hereby and this Agreement and all obligations (other than those expressly
stated to survive such termination) of the Administrative Agent and each
Grantor hereunder shall 

 I-14
 

terminate, all
without delivery of any instrument or performance of any act by any party, and
all rights to the Collateral shall revert to the Grantors.  At the request and sole expense of any
Grantor following any such termination, the Administrative Agent shall deliver
to such Grantor any Collateral of such Grantor held by the Administrative Agent
hereunder and execute and deliver to such Grantor such documents as such
Grantor shall reasonably request to evidence such termination.

(b)           If the
Administrative Agent shall be directed or permitted pursuant to Section 10.8(b)(ii) or (iii)
(Concerning the Collateral and the Collateral
Documents) of the Credit Agreement to release any Lien created
hereby upon any Collateral (including any Collateral sold or disposed of by any
Grantor in a transaction permitted by the Credit Agreement), such Collateral
shall be released from the Lien created hereby to the extent provided under,
and subject to the terms and conditions set forth in, Section 10.8(b)(ii)
or (iii) (Concerning
the Collateral and the Collateral Documents) of the Credit Agreement.  In connection therewith, the Administrative
Agent, at the request and sole expense of the Borrower, shall execute and
deliver to the Borrower all releases or other documents, including, without
limitation, UCC termination statements, reasonably necessary or desirable for
the release of the Lien created hereby on such Collateral.  At the request and sole expense of the
Borrower, a Grantor shall be released from its obligations hereunder in the
event that all the capital stock of such Grantor shall be so sold or disposed; provided, however, that
the Borrower shall have delivered to the Administrative Agent, at least ten
Business Days, or such shorter period as the Administrative Agent may agree to,
prior to the date of the proposed release, a written request for release
identifying the relevant Grantor and the terms of the sale or other disposition
in reasonable detail, including the price thereof and any expenses in
connection therewith, together with a certification by the Borrower in form and
substance satisfactory to the Administrative Agent stating that such
transaction is in compliance with the Credit Agreement and the other Loan
Documents.

Section 7.12                            Reinstatement

Each Grantor further agrees that, if any payment made
by any Loan Party or other Person and applied to the Obligations is at any time
annulled, avoided, set aside, rescinded, invalidated, declared to be fraudulent
or preferential or otherwise required to be refunded or repaid, or the proceeds
of Collateral are required to be returned by any Secured Party to such Loan
Party, its estate, trustee, receiver or any other party, including any Grantor,
under any bankruptcy law, state or federal law, common law or equitable cause,
then, to the extent of such payment or repayment, any Lien or other Collateral
securing such liability shall be and remain in full force and effect, as fully
as if such payment had never been made or, if prior thereto the Lien granted
hereby or other Collateral securing such liability hereunder shall have been
released or terminated by virtue of such cancellation or surrender), such Lien
or other Collateral shall be reinstated in full force and effect, and such
prior cancellation or surrender shall not diminish, release, discharge, impair
or otherwise affect any Lien or other Collateral securing the obligations of
any Grantor in respect of the amount of such payment.

[Signature Pages Follow]

 I-15
 

 

In witness whereof,
each of the undersigned has caused this Pledge and Security Agreement to be
duly executed and delivered as of the date first above written.

	
  

  	
  Tenet Healthcare
  Corporation,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [Grantors],

  
	
   

  	
  as Grantor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Accepted and Agreed

  	
   

  	
   

  	
   

  
	
  as of the date
  first above written:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Citicorp USA, Inc.,

  	
   

  	
   

  	
   

  
	
  as
  Administrative Agent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO PLEDGE AND SECURITY AGREEMENT FOR
TENET’S CREDIT AGREEMENT]

 I-16

ANNEX 1-A

TO

PLEDGE AND SECURITY AGREEMENT

FORM OF DEPOSIT ACCOUNT CONTROL AGREEMENT

                       
   ,     

[Financial Institution]

[Address]

Ladies and Gentlemen:

Reference is made to account no. [               ]
maintained with you (the “Bank”) by [                ]
(the “Company”), [as borrower] [as guarantor]
into which funds are deposited from time to time (the “Account”).  The Company has entered into a Pledge and
Security Agreement, dated as of November 16, 2006 (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Pledge and Security Agreement”), among the Company, [Tenet
Healthcare Corporation], certain of its [subsidiaries][affiliates] party
thereto and Citicorp USA, Inc., as agent for the Secured Parties referred to
therein (in such capacity the “Administrative Agent”).  All references herein to the “UCC” shall mean
the Uniform Commercial Code as in effect in the State of New York.

Pursuant to the Pledge and Security Agreement and
related documents, the Company has granted to the Administrative Agent, for the
benefit of the Secured Parties, a security interest in certain property of the
Company, including, among other things, accounts, instruments, general
intangibles and all proceeds thereof (the “Collateral”).  Payments with respect to the Collateral are
or hereafter may be made to the Account. 
You, the Company and the Administrative Agent are entering into this
letter agreement to perfect the security interest of the Administrative Agent
in the Account.

The Company hereby transfers to the Administrative
Agent exclusive control of the Account. 
By your execution of this letter agreement, you (i) agree that you
shall comply with instructions originated by the Administrative Agent directing
disposition of the funds in the Account without further consent of the Company
and (ii) acknowledge and agree that the Administrative Agent now has
exclusive control of the Account and that all funds and other property on
deposit in the Account shall be transferred to the Administrative Agent upon
receipt of a Blockage Notice, as described below.

The Account shall not be subject to deduction,
set-off, banker’s lien, counterclaim, defense, recoupment or any other right in
favor of any person or entity other than the Administrative Agent.  By your execution of this letter agreement
you also acknowledge that, as of the date hereof, you have received no notice
of any other pledge or assignment of the Account and have not executed any
agreements with third parties covering the disposition of funds in the Account
at any time from and after the date hereof. 
You agree with the Administrative Agent as follows:

 1-A-1
 

 

(a)           Prior to the delivery to you of a
written notice from the Administrative Agent in the form of Exhibit A hereto
(a “Blockage Notice”), you are authorized to
accept instructions from the Company with respect to the management and
direction of the Account in all aspects, including the disposition of funds
maintained in the Account.

(b)           From and after the delivery to you of
a Blockage Notice, you shall transfer (by wire transfer or other method of
transfer mutually acceptable to you and the Administrative Agent) to the
Administrative Agent, in same day funds, on each business day, the entire
balance in the Account to the following account:

	
  

  	
   

  	
  ABA Number:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Citibank, N.A.

  	
   

  	
   

  
	
   

  	
   

  	
  388 Greenwich Street

  	
   

  	
   

  
	
   

  	
   

  	
  New York, New York 10013

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Account Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Concentration Account

  	
   

  	
   

  
	
   

  	
   

  	
  Account Number:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Reference:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:

  	
   

  	
   

  	
   

  
										

 

or to such other account as the Administrative Agent
may from time to time designate in writing (the “Administrative
Agent Concentration Account”).

(c)           All customary service charges and
fees with respect to the Account shall be debited to the Account.  In the event insufficient funds remain in the
Account to cover such customary service charges and fees, the Company shall pay
and indemnify you for the amounts of such customary service charges and fees.

This letter agreement shall be binding upon and shall
inure to the benefit of you, the Company, the Administrative Agent, the Secured
Parties referred to in the Pledge and Security Agreement and the respective
successors, transferees and assigns of any of the foregoing.  This letter agreement may not be modified except
upon the mutual consent of the Administrative Agent, the Company and you. You
may terminate the letter agreement only upon 30 days’ prior written notice to
the Company and the Administrative Agent. 
The Administrative Agent may terminate this letter agreement upon 10
days’ prior written notice to you and the Company, unless such termination is
in connection with the payment in full of the obligations secured as provided
in the Pledge and Security Agreement, in which case the termination of this
letter agreement shall be effective upon receipt by you of the Administrative
Agent’s written acknowledgment of the payment in full of the obligations
secured as provided in the Pledge and Security Agreement.

This letter agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which when
taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a
signature page to this letter agreement by telecopier shall be effective as
delivery of a manually executed counterpart of this letter agreement.

 1-A-2
 

 

This letter agreement supersedes all prior agreements,
oral or written, with respect to the subject matter hereof and may not be
amended, modified or supplemented except by a writing signed by the
Administrative Agent, the Company and you. 
Without the prior consent of the Administrative Agent and the Company,
you shall not, agree with any third part to comply with instructions or other
directions concerning the Account or the disposition of funds in the Account
originated by such third party.

The Company hereby agrees to indemnify and hold you,
your directors, officers, agents and employees harmless against all claims,
causes of action, liabilities, lawsuits, demands and damages, including,
without limitation, all court costs and reasonable attorney fees, in each case
in any way related to or arising out of or in connection with this letter
agreement or any action taken or not taken pursuant hereto, except to the
extent caused by your gross negligence or willful misconduct.

Both this letter agreement and the Account shall be
governed by, and construed in accordance with, the laws of the State of New
York.  Regardless of any provision in any
other agreement governing the Account, you agree that the “bank’s jurisdiction”
for purposes of this letter agreement and the UCC shall be the State of New
York.

 

 1-A-3

Upon acceptance of this
letter agreement it shall be the valid and binding obligation of the Company,
the Administrative Agent, and you, in accordance with its terms.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Company]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Citicorp USA, Inc.,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Acknowledged and Agreed

  	
   

  	
   

  	
   

  
	
  as of the date
  first above written:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [Financial Institution]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  

 

 

 

[SIGNATURE PAGE TO DEPOSIT ACCOUNT CONTROL ACCOUNT AGREEMENT]

 1-A-4

Exhibit A

to

Deposit Account Control Agreement

Form of
Administrative Agent Blockage Notice

[Financial Institution]

[Address]

Re:          Account
No.                                    
(the “Account”)

Ladies and Gentlemen:

Reference is made to the Account and that certain
Deposit Account Control Agreement dated                      , 20  
among you, Citicorp USA, Inc., as Administrative Agent (the “Administrative Agent”), and [                        ]
(the “Deposit Account Control Agreement”).  Capitalized terms used herein shall have the
meanings given to them in the Deposit Account Control Agreement.

The Administrative Agent hereby notifies you that,
from and after the date of this notice, you are hereby directed to transfer (by
wire transfer or other method of transfer mutually acceptable to you and the
Administrative Agent) to the Administrative Agent, in same day funds, on each
business day, the entire balance in the Account to the Administrative Agent
Concentration Account specified in clause (b) of
the Deposit Account Control Agreement or to such other account as the
Administrative Agent may from time to time designate in writing.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Citicorp USA, Inc,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 1-A-5

 

ANNEX 1-B

PLEDGE AND SECURITY AGREEMENT

FORM OF COLLECTION
DEPOSIT ACCOUNT AGREEMENT

                
   ,       

[Financial Institution]

[Address]

Ladies and Gentlemen:

Reference is made to account no. [                ]
maintained with you (the “Bank”) by [                ]
(the “Company”), [as borrower] [as guarantor]
into which funds are deposited from time to time (the “Account”).  The Company has entered into a Pledge and
Security Agreement, dated as of November 16, 2006 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Pledge and
Security Agreement”), among the Company, [Tenet Healthcare
Corporation], certain of its [subsidiaries][affiliates] party thereto and
Citicorp USA, Inc., as agent for the Secured Parties referred to therein (in
such capacity the “Administrative Agent”).  All references herein to the “UCC” shall mean
the Uniform Commercial Code as in effect in the State of New York.

Pursuant to the Pledge and Security Agreement and
related documents, the Company has granted to the Administrative Agent, for the
benefit of the Secured Parties, a security interest in certain property of the
Company, including, among other things, accounts, instruments, general
intangibles and all proceeds thereof (the “Collateral”).  Payments with respect to the Collateral are
or hereafter may be made to the Account.

By your execution of this letter agreement you also
acknowledge that, as of the date hereof, you have received no notice of any
other pledge or assignment of the Account and have not executed any agreements
with third parties covering the disposition of funds in the Account at any time
from and after the date hereof.  You
agree with the Administrative Agent as follows:

(d)           You are authorized to accept instructions
from the Company with respect to the management and direction of the Account in
all respects.  EACH OF THE PARTIES HERETO
AGREE AND CONFIRM THAT THE COMPANY HAS SOLE DOMINION AND CONTROL OVER THE
ACCOUNT.

(e)           You shall transfer (by wire transfer
or other method of transfer mutually acceptable to you and the Administrative
Agent) to [Tenet Healthcare Corporation], in same day funds, on each business
day, the entire balance in the Account to the following account:

ABA Number:

[Tenet Healthcare Corporation]

Address:

 1-B-1
 

 

	
  Account Name:

  	
   

  	
   

  
	
   

  	
  Concentration
  Account

  	
   

  
	
  Account Number:

  	
   

  	
   

  
	
  Reference:

  	
   

  	
   

  
	
  Attn:

  	
   

  	
   

  
				

 

or to such other account as the Company may from time
to time designate in writing .

(f)            All customary service charges and
fees with respect to the Account shall be debited to the Account.  In the event insufficient funds remain in the
Account to cover such customary service charges and fees, the Company shall pay
and indemnify you for the amounts of such customary service charges and fees.

You shall notify the Administrative Agent immediately
in the event the Company instructs you to alter any of the arrangements set
forth in paragraphs (a) through (c) above. 
The Company agrees that any such instructions to [the Financial
Institution] contrary to those set forth in paragraphs (a) through (c) above
shall constitute an Event of Default under the terms of the Credit
Agreement.  In such event, the Company
acknowledges that the Administrative Agent shall have the right to seek an
immediate court order directing [the Financial Institution] to transfer to the
Administrative Agent, in same day funds, on each Business Day, the entire
balance in the Account to an account to be designated by the Administrative
Agent.

This letter agreement shall be binding upon and shall
inure to the benefit of you, the Company, the Administrative Agent, the Secured
Parties referred to in the Pledge and Security Agreement and the respective
successors, transferees and assigns of any of the foregoing.  This letter agreement may not be modified
except upon the mutual consent of the Administrative Agent, the Company and
you. You may terminate the letter agreement only upon 30 days’ prior written
notice to the Company and the Administrative Agent.  The Administrative Agent may terminate this
letter agreement upon 10 days’ prior written notice to you and the Company,
unless such termination is in connection with the payment in full of the
obligations secured as provided in the Pledge and Security Agreement, in which
case the termination of this letter agreement shall be effective upon receipt
by you of the Administrative Agent’s written acknowledgment of the payment in
full of the obligations secured as provided in the Pledge and Security Agreement.

This letter agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which when
taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a
signature page to this letter agreement by telecopier shall be effective as
delivery of a manually executed counterpart of this letter agreement.

This letter agreement supersedes all prior agreements,
oral or written, with respect to the subject matter hereof and may not be
amended, modified or supplemented except by a writing signed by the
Administrative Agent, the Company and you. 
Without the prior consent of the Administrative Agent and the Company,
you shall not, agree with any third part to comply with instructions or other
directions concerning the Account or the disposition of funds in the Account
originated by such third party.

 1-B-2
 

The Company hereby agrees to indemnify and hold you,
your directors, officers, agents and employees harmless against all claims,
causes of action, liabilities, lawsuits, demands and damages, including,
without limitation, all court costs and reasonable attorney fees, in each case
in any way related to or arising out of or in connection with this letter
agreement or any action taken or not taken pursuant hereto, except to the
extent caused by your gross negligence or willful misconduct.

Both this letter agreement and the Account shall be
governed by, and construed in accordance with, the laws of the State of New
York.  Regardless of any provision in any
other agreement governing the Account, you agree that the “bank’s jurisdiction”
for purposes of this letter agreement and the UCC shall be the State of New
York.

 1-B-3
 

Upon acceptance of this letter agreement it shall be
the valid and binding obligation of the Company, the Administrative Agent, and
you, in accordance with its terms.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF COMPANY]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITICORP USA, INC.,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

ACKNOWLEDGED AND AGREED

as of the date first above written:

 

	
  [FINANCIAL INSTITUTION]

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title

  	
   

  
					

 

 1-B-4

 

ANNEX 2

TO

PLEDGE AND SECURITY AGREEMENT

Form of
Pledge Amendment

This Pledge Amendment, dated as of                   ,
20  , is delivered pursuant to Section 4.4(a)
(Pledged Collateral) of the Pledge and
Security Agreement, dated as of November 16, 2006, by Tenet Healthcare Corporation (the “Borrower”),
the [undersigned Grantor and the other ]Subsidiaries of the Borrower from time
to time party thereto as Grantors in favor of Citicorp USA, Inc., as agent for
the Secured Parties referred to therein (the “Pledge and
Security Agreement”) and the undersigned hereby agrees that this
Pledge Amendment may be attached to the Pledge and Security Agreement and that
the Pledged Collateral listed on this Pledge Amendment shall be and become part
of the Collateral referred to in the Pledge and Security Agreement and shall
secure all Secured Obligations of the undersigned.  Capitalized terms used herein but not defined
herein are used herein with the meaning given them in the Pledge and Security
Agreement.

	
  

  	
  [GRANTOR]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Pledged
Instruments

	
  ISSUER

  	
   

  	
  DESCRIPTION OF DEBT

  	
   

  	
  CERTIFICATE NO(S).

  	
   

  	
  FINAL MATURITY

  	
   

  	
  PRINCIPAL 

  AMOUNT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 A2-1
 

Acknowledged
and Agreed

as of the date first above written:

	
  Citicorp USA, Inc.,

  	
   

  
	
  as Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

 A2-2

 

ANNEX 3

TO

PLEDGE AND SECURITY AGREEMENT

FORM OF
JOINDER AGREEMENT

This JOINDER AGREEMENT, dated as of                   
  , 20   , is delivered pursuant to Section 7.10 (Additional Grantors) of
the Pledge and Security Agreement, dated as of November 16, 2006, by Tenet Healthcare Corporation (the “Borrower”) and the Subsidiaries of the Borrower listed on
the signature pages thereof in favor of the Citicorp USA, Inc., as agent for
the Secured Parties referred to therein (the “Pledge and
Security Agreement”). 
Capitalized terms used herein but not defined herein are used with the
meanings given them in the Pledge and Security Agreement.

By executing and delivering this Joinder Agreement,
the undersigned, as provided in Section 7.10
(Additional Grantors) of the Pledge and Security Agreement, hereby
becomes a party to the Pledge and Security Agreement as a Grantor thereunder
with the same force and effect as if originally named as a Grantor therein and,
without limiting the generality of the foregoing, hereby grants to the
Administrative Agent, as collateral security for the full, prompt and complete
payment and performance when due (whether at stated maturity, by acceleration
or otherwise) of the Secured Obligations of the undersigned, hereby
collaterally assigns, mortgages, pledges and hypothecates to the Administrative
Agent and grants to the Administrative Agent a Lien on and security interest
in, all of its right, title and interest in, to and under the Collateral of the
undersigned and expressly assumes all obligations and liabilities of a Grantor
thereunder.

The information set forth in Annex 1-A
is hereby added to the information set forth in Schedules 1 through 4 to the Pledge and Security Agreement.

The undersigned hereby represents and warrants that
each of the representations and warranties contained in Article III
(Representations and Warranties) of the
Pledge and Security Agreement applicable to it is true and correct on and as
the date hereof as if made on and as of such date.

In witness whereof,
the undersigned has caused this Joinder Agreement to be duly executed and
delivered as of the date first above written.

	
  

  	
  [ADDITIONAL GRANTOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 A3-1
 

Acknowledged
and Agreed

as of the date first above written:

[Each Grantor Pledging 

Additional Collateral]

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  Citicorp USA, Inc.,

  	
   

  
	
  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 A3-2

EXHIBIT J

FORM OF

BORROWING BASE CERTIFICATE

TENET HEALTHCARE CORPORATION

Borrowing Base Certificate

Period ending    /   /   

Citicorp USA, Inc., 

as Administrative Agent under the

Credit Agreement referred to below

388 Greenwich Street,
20th Floor

New York, NY 10013

Reference is made
to the Credit Agreement, dated as of November    , 2006 (as
the same may be amended, restated, supplemented or otherwise modified from time
to time, the “Credit Agreement”), among the
Borrower, the Lenders and Issuers party thereto, Citicorp USA, Inc., as agent
for the Lenders and Issuers, and Banc of America Securities LLC, as syndication
agent.  Capitalized terms used herein and
not otherwise defined herein are used herein as defined in the Credit
Agreement.

The undersigned Responsible
Officer of the Borrower hereby certifies that (i) the information attached
hereto as Exhibit A is true, complete and correct as of the close of
business on the period end set forth above and (ii) no Default or Event of
Default has occurred and is continuing on the date hereof.

TENET
HEALTHCARE CORPORATION

	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
					

 

 J-1
 

EXHIBIT A

TENET
HEALTHCARE CORPORATION

DETAILED AVAILABILITY SCHEDULE

AS OF                            
   ,       

	
   

  	
   

  	
  Mgd Care &

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Comm Insur

  	
   

  	
  Medicaid

  	
   

  	
  Medicare

  	
   

  	
  Totals

  	
   

  
	
  Acute aging
  balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Specialty aging
  balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross aging balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contractual
  allowances on acute aging

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contractual
  allowances on specialty aging

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Amounts over 120
  days - acute

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Amounts over 120
  days - specialty

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tenet Choices,
  net of contractuals

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cost report
  liability - contras

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Unreconciled
  delta - GL versus aging

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Estimated self
  pay included

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total ineligible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total eligible

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available @ 85%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Availability on 120-150 days @ 50%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Availability on 150-180 days @ 25%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total availability

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contractual allowance
  rate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 J-2

Exhibit
K

Form of Collection Deposit Account Agreement

[Financial Institution]

[Address]

Ladies and Gentlemen:

Reference is made to account no. [              ]
maintained with you (the “Bank”) by [              ]
(the “Company”), [as borrower] [as guarantor]
into which funds are deposited from time to time (the “Account”).  The Company has entered into a Pledge and
Security Agreement, dated as of November 16, 2006 (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Pledge and Security Agreement”), among the Company, [Tenet
Healthcare Corporation], certain of its [subsidiaries][affiliates] party
thereto and Citicorp USA, Inc., as agent for the Secured Parties referred to
therein (in such capacity the “Administrative Agent”).  All references herein to the “UCC” shall mean
the Uniform Commercial Code as in effect in the State of New York.

Pursuant to the Pledge and Security Agreement and
related documents, the Company has granted to the Administrative Agent, for the
benefit of the Secured Parties, a security interest in certain property of the
Company, including, among other things, accounts, instruments, general
intangibles and all proceeds thereof (the “Collateral”).  Payments with respect to the Collateral are
or hereafter may be made to the Account.

By your execution of this letter agreement you also
acknowledge that, as of the date hereof, you have received no notice of any
other pledge or assignment of the Account and have not executed any agreements
with third parties covering the disposition of funds in the Account at any time
from and after the date hereof.  You
agree with the Administrative Agent as follows:

(a)           You are authorized to accept
instructions from the Company with respect to the management and direction of
the Account in all respects.  EACH OF THE
PARTIES HERETO AGREE AND CONFIRM THAT THE COMPANY HAS SOLE DOMINION AND CONTROL
OVER THE ACCOUNT.

(b)           You shall transfer (by wire transfer
or other method of transfer mutually acceptable to you and the Administrative
Agent) to [Tenet Healthcare Corporation], in same day funds, on each business
day, the entire balance in the Account to the following account:

	
  ABA Number(1):

  	
   

  	
   

  
	
  [Tenet
  Healthcare Corporation]

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Account Name:

  	
   

  	
   

  
	
   

  	
  Concentration Account

  	
   

  
	
  Account Number:

  	
   

  	
   

  
	
  Reference:

  	
   

  	
   

  
	
  Attn:

  	
   

  	
   

  
							

or to such other account
as the Company may from time to time designate in writing.

(1)             Insert
details of the applicable Approved Deposit Account.

 K-1
 

(c)           All customary service charges and
fees with respect to the Account shall be debited to the Account.  In the event insufficient funds remain in the
Account to cover such customary service charges and fees, the Company shall pay
and indemnify you for the amounts of such customary service charges and fees.

You shall notify the Administrative Agent immediately
in the event the Company instructs you to alter any of the arrangements set
forth in paragraphs (a) through (c) above. 
The Company agrees that any such instructions to [the Financial
Institution] contrary to those set forth in paragraphs (a) through (c) above
shall constitute an Event of Default under the terms of the Credit
Agreement.  In such event, the Company acknowledges
that the Administrative Agent shall have the right to seek an immediate court
order directing [the Financial Institution] to transfer to the Administrative
Agent, in same day funds, on each Business Day, the entire balance in the
Account to an account to be designated by the Administrative Agent.

This letter agreement shall be binding upon and shall
inure to the benefit of you, the Company, the Administrative Agent, the Secured
Parties referred to in the Pledge and Security Agreement and the respective
successors, transferees and assigns of any of the foregoing.  This letter agreement may not be modified
except upon the mutual consent of the Administrative Agent, the Company and
you. You may terminate the letter agreement only upon 30 days’ prior written
notice to the Company and the Administrative Agent.  The Administrative Agent may terminate this
letter agreement upon 10 days’ prior written notice to you and the Company,
unless such termination is in connection with the payment in full of the
obligations secured as provided in the Pledge and Security Agreement, in which
case the termination of this letter agreement shall be effective upon receipt
by you of the Administrative Agent’s written acknowledgment of the payment in
full of the obligations secured as provided in the Pledge and Security
Agreement.

This letter agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which when
taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a
signature page to this letter agreement by telecopier shall be effective as
delivery of a manually executed counterpart of this letter agreement.

This letter agreement supersedes all prior agreements,
oral or written, with respect to the subject matter hereof and may not be
amended, modified or supplemented except by a writing signed by the
Administrative Agent, the Company and you. 
Without the prior consent of the Administrative Agent and the Company,
you shall not, agree with any third part to comply with instructions or other
directions concerning the Account or the disposition of funds in the Account
originated by such third party.

The Company hereby agrees to indemnify and hold you,
your directors, officers, agents and employees harmless against all claims,
causes of action, liabilities, lawsuits, demands and damages, including,
without limitation, all court costs and reasonable attorney fees, in each case
in any way related to or arising out of or in connection with this letter
agreement or any action taken or not taken pursuant hereto, except to the
extent caused by your gross negligence or willful misconduct.

Both this letter agreement and the Account shall be
governed by, and construed in accordance with, the laws of the State of New
York.  Regardless of any provision in any
other agreement governing the Account, you agree that the “bank’s jurisdiction”
for purposes of this letter agreement and the UCC shall be the State of New
York.

 K-2
 

Upon acceptance of this letter agreement it shall be
the valid and binding obligation of the Company, the Administrative Agent, and
you, in accordance with its terms.

	
   

  	
  Very truly yours,

  
	
   

  	
  [Name of
  Company]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  Citicorp USA,
  Inc.,

  
	
   

  	
  as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Acknowledged
and Agreed

as of the date first above written:

[Financial
Institution]

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title

  	
   

  
				

 

 K-3Exhibit
10(d)

 

SECOND
AMENDED AND RESTATED

INFORMATION
TECHNOLOGY AND MANAGEMENT AGREEMENT

between

TENET
HEALTHCARE CORPORATION

and

PEROT
SYSTEMS CORPORATION

NOVEMBER,
2006*

 

 

 

 

 

*                 Confidential
portions of this document have been omitted and separately filed with the
Securities and Exchange Commission pursuant to an application for confidential
treatment under Rule 24b-2 under the Securities Exchange Act of 1934, as
amended, as indicated by the notation “[**]” on pages iv, v, vi, 7, 21, 22, 23,
24, 28, 30, 31, 33, 35, 36, 37, 38, 40, 41, 42, 45, 46, 54, 55, 56, 59, 60, 61,
63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 77, 84, 90, 91, 92, 93, 94, 95,
98, 99, 101, 102 and 103.

TABLE OF CONTENTS

	
  

  	
   

  	
  

  	
   

  	
  Page

  
	
  ARTICLE 1.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  	
   

  	
  TERM

  	
   

  	
  22

  
	
  2.01

  	
   

  	
  Initial Term

  	
   

  	
  22

  
	
  2.02

  	
   

  	
  Renewals

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  	
   

  	
  2001 CORE OBLIGATIONS AND CORE ENTERPRISE SERVICES

  	
   

  	
  22

  
	
  3.01

  	
   

  	
  2001 Core Obligations

  	
   

  	
  22

  
	
  3.02

  	
   

  	
  Core Enterprise Services

  	
   

  	
  23

  
	
  3.03

  	
   

  	
  Current Environment

  	
   

  	
  23

  
	
  3.04

  	
   

  	
  Enterprise Machines

  	
   

  	
  23

  
	
  3.05

  	
   

  	
  Enterprise Machine Maintenance

  	
   

  	
  23

  
	
  3.06

  	
   

  	
  Relief

  	
   

  	
  23

  
	
  3.07

  	
   

  	
  Replacement

  	
   

  	
  23

  
	
  3.08

  	
   

  	
  Enterprise Machine Refresh

  	
   

  	
  24

  
	
  3.09

  	
   

  	
  Leased Tenet Enterprise Machines

  	
   

  	
  25

  
	
  3.10

  	
   

  	
  Enterprise Applications Software

  	
   

  	
  25

  
	
  3.11

  	
   

  	
  Additional Third Party Enterprise Applications
  Software

  	
   

  	
  25

  
	
  3.12

  	
   

  	
  Tenet Enterprise Applications Software Maintenance

  	
   

  	
  25

  
	
  3.13

  	
   

  	
  Enterprise Systems Software

  	
   

  	
  26

  
	
  3.14

  	
   

  	
  Enterprise Systems Software Maintenance

  	
   

  	
  26

  
	
  3.15

  	
   

  	
  New Releases and Versions of the Enterprise Software

  	
   

  	
  27

  
	
  3.16

  	
   

  	
  Voice Communications

  	
   

  	
  27

  
	
  3.17

  	
   

  	
  Data Telecommunications

  	
   

  	
  27

  
	
  3.18

  	
   

  	
  Disposition of Assets

  	
   

  	
  28

  
	
  3.19

  	
   

  	
  Supplies

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4.

  	
   

  	
  CORE PROJECTS

  	
   

  	
  28

  
	
  4.01

  	
   

  	
  Core Project Management

  	
   

  	
  28

  
	
  4.02

  	
   

  	
  Core Project Schedules

  	
   

  	
  29

  
	
  4.03

  	
   

  	
  Core Project Testing Environments

  	
   

  	
  29

  
	
  4.04

  	
   

  	
  Core Project Acceptance Tests

  	
   

  	
  29

  
	
  4.05

  	
   

  	
  Core Project Completion

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5.

  	
   

  	
  CORE FACILITY SERVICES

  	
   

  	
  29

  
	
  5.01

  	
   

  	
  Core Facility Services

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6.

  	
   

  	
  ADDITIONAL CORE OBLIGATIONS

  	
   

  	
  30

  
	
  6.01

  	
   

  	
  Changes to the Core Obligations

  	
   

  	
  30

  

 

 i
 

 

	
  6.02

  	
   

  	
  Procurement

  	
   

  	
  30

  
	
  6.03

  	
   

  	
  Improved
  Technology

  	
   

  	
  30

  
	
  6.04

  	
   

  	
  Licenses and
  Permits

  	
   

  	
  31

  
	
  6.05

  	
   

  	
  Changes in Law
  and Regulations

  	
   

  	
  31

  
	
  6.06

  	
   

  	
  RESERVED

  	
   

  	
  31

  
	
  6.07

  	
   

  	
  Strategic Plan

  	
   

  	
  31

  
	
  6.08

  	
   

  	
  Manufacturers’
  Warranties

  	
   

  	
  31

  
	
  6.09

  	
   

  	
  Charge Back
  System

  	
   

  	
  32

  
	
  6.10

  	
   

  	
  Third Party
  Services

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7.

  	
   

  	
  THIRD PARTY
  CONTRACT ADMINISTRATION AND MANAGEMENT

  	
   

  	
  32

  
	
  7.01

  	
   

  	
  PSC Responsibilities

  	
   

  	
  32

  
	
  7.02

  	
   

  	
  Performance
  Under Agreements

  	
   

  	
  32

  
	
  7.03

  	
   

  	
  Third Party
  Invoices

  	
   

  	
  33

  
	
  7.04

  	
   

  	
  Appointment as
  Agent

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8.

  	
   

  	
  SPECIAL SERVICES

  	
   

  	
  33

  
	
  8.01

  	
   

  	
  Special Services

  	
   

  	
  33

  
	
  8.02

  	
   

  	
  Continuing
  Special Services Schedules

  	
   

  	
  36

  
	
  8.03

  	
   

  	
  Development
  Services

  	
   

  	
  36

  
	
  8.04

  	
   

  	
  Development
  Baseline Annual Hours

  	
   

  	
  36

  
	
  8.05

  	
   

  	
  Special Services
  Timeframe

  	
   

  	
  37

  
	
  8.06

  	
   

  	
  Special Services
  Acceptance Tests

  	
   

  	
  37

  
	
  8.07

  	
   

  	
  Minimum
  Commitment for Special Services

  	
   

  	
  37

  
	
  8.08

  	
   

  	
  Third Party
  Services

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  	
   

  	
  CUSTOMER
  SATISFACTION

  	
   

  	
  38

  
	
  9.01

  	
   

  	
  Baseline
  Customer Satisfaction Survey

  	
   

  	
  38

  
	
  9.02

  	
   

  	
  Annual Customer
  Satisfaction Survey

  	
   

  	
  38

  
	
  9.03

  	
   

  	
  End-User
  Customer Satisfaction Surveys

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10.

  	
   

  	
  PERFORMANCE
  STANDARDS

  	
   

  	
  39

  
	
  10.01

  	
   

  	
  2001 Core
  Obligations

  	
   

  	
  39

  
	
  10.02

  	
   

  	
  Core Performance
  Standards

  	
   

  	
  39

  
	
  10.03

  	
   

  	
  Special Services

  	
   

  	
  40

  
	
  10.04

  	
   

  	
  Adjustment of
  Performance Standards

  	
   

  	
  40

  
	
  10.05

  	
   

  	
  Additional
  Performance Standards

  	
   

  	
  40

  
	
  10.06

  	
   

  	
  Reports

  	
   

  	
  41

  
	
  10.07

  	
   

  	
  Root-Cause
  Analysis

  	
   

  	
  41

  
	
  10.08

  	
   

  	
  Offshore
  Disruptions

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11.

  	
   

  	
  BENCHMARKING

  	
   

  	
  41

  
	
  11.01

  	
   

  	
  Benchmark
  Overview

  	
   

  	
  41

  

 

 ii
 

 

	
  11.02

  	
   

  	
  Benchmarker

  	
   

  	
  41

  
	
  11.03

  	
   

  	
  Benchmark

  	
   

  	
  42

  
	
  11.04

  	
   

  	
  Benchmark Information

  	
   

  	
  42

  
	
  11.05

  	
   

  	
  Benchmarking Results

  	
   

  	
  42

  
	
  11.06

  	
   

  	
  Benchmark Results Review Period and Adjustments

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12.

  	
   

  	
  SERVICE LOCATIONS

  	
   

  	
  42

  
	
  12.01

  	
   

  	
  Service Locations

  	
   

  	
  42

  
	
  12.02

  	
   

  	
  Physical Security Procedures

  	
   

  	
  43

  
	
  12.03

  	
   

  	
  Security Relating to Competitors

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 13.

  	
   

  	
  GLOBALIZATION

  	
   

  	
  43

  
	
  13.01

  	
   

  	
  IT Migration and Risk Mitigation Plan

  	
   

  	
  43

  
	
  13.02

  	
   

  	
  Implementation of Tier 1 Offshore Services

  	
   

  	
  43

  
	
  13.03

  	
   

  	
  Implementation of Tier 2 Offshore Services

  	
   

  	
  43

  
	
  13.04

  	
   

  	
  Migration of Special Services

  	
   

  	
  44

  
	
  13.05

  	
   

  	
  Relocation of Services from Countries Outside the
  United States Due to PSC Material Breach

  	
   

  	
  45

  
	
  13.06

  	
   

  	
  Withdrawal of Approval of Migration/Relocation of
  Services Not Related to PSC Material Breach

  	
   

  	
  47

  
	
  13.07

  	
   

  	
  Systems Location

  	
   

  	
  53

  
	
  13.08

  	
   

  	
  Offshore Disruptions

  	
   

  	
  53

  
	
  13.09

  	
   

  	
  Tenet Consents

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 14.

  	
   

  	
  PROJECT TEAM

  	
   

  	
  54

  
	
  14.01

  	
   

  	
  Management Committee

  	
   

  	
  54

  
	
  14.02

  	
   

  	
  PSC Client Executive

  	
   

  	
  54

  
	
  14.03

  	
   

  	
  PSC Quality Manager

  	
   

  	
  55

  
	
  14.04

  	
   

  	
  Key Employees

  	
   

  	
  55

  
	
  14.05

  	
   

  	
  PSC Project Personnel

  	
   

  	
  55

  
	
  14.06

  	
   

  	
  Review Meetings

  	
   

  	
  56

  
	
  14.07

  	
   

  	
  Subcontractors

  	
   

  	
  56

  
	
  14.08

  	
   

  	
  Conduct of PSC Project Personnel

  	
   

  	
  57

  
	
  14.09

  	
   

  	
  Background Checks

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 15.

  	
   

  	
  MANAGEMENT AND CONTROL

  	
   

  	
  61

  
	
  15.01

  	
   

  	
  Management Procedures Manual

  	
   

  	
  61

  
	
  15.02

  	
   

  	
  Change Control Procedures

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 16.

  	
   

  	
  PROPRIETARY RIGHTS

  	
   

  	
  62

  
	
  16.01

  	
   

  	
  Tenet Software

  	
   

  	
  62

  
	
  16.02

  	
   

  	
  PSC Proprietary Software

  	
   

  	
  63

  
	
  16.03

  	
   

  	
  PSC Third Party Software

  	
   

  	
  63

  
	
  16.04

  	
   

  	
  Developed Software

  	
   

  	
  63

  

 

 iii
 

 

	
  16.05

  	
   

  	
  Infringement

  	
   

  	
  64

  
	
  16.06

  	
   

  	
  Changes and Upgrades to the Systems

  	
   

  	
  64

  
	
  16.07

  	
   

  	
  Documentation

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 17.

  	
   

  	
  REQUIRED CONSENTS

  	
   

  	
  64

  
	
  17.01

  	
   

  	
  Consents

  	
   

  	
  64

  
	
  17.02

  	
   

  	
  Work-Around

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 18.

  	
   

  	
  TENET RESPONSIBILITIES

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 19.

  	
   

  	
  REPORTS AND DATA

  	
   

  	
  66

  
	
  19.01

  	
   

  	
  Ownership of Tenet Data

  	
   

  	
  66

  
	
  19.02

  	
   

  	
  Correction of Errors

  	
   

  	
  66

  
	
  19.03

  	
   

  	
  Return/Destruction of Tenet Data

  	
   

  	
  67

  
	
  19.04

  	
   

  	
  Reports

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 20.

  	
   

  	
  CONTINUED PROVISION OF SERVICES

  	
   

  	
  67

  
	
  20.01

  	
   

  	
  Disaster Recovery

  	
   

  	
  67

  
	
  20.02

  	
   

  	
  Force Majeure

  	
   

  	
  67

  
	
  20.03

  	
   

  	
  Allocation of Resources

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 21.

  	
   

  	
  PAYMENTS

  	
   

  	
  69

  
	
  21.01

  	
   

  	
  2001 Core Fees

  	
   

  	
  69

  
	
  21.02

  	
   

  	
  Core Enterprise Annual Fees

  	
   

  	
  69

  
	
  21.03

  	
   

  	
  Core Facility Fees

  	
   

  	
  69

  
	
  21.04

  	
   

  	
  Special Services Fees

  	
   

  	
  69

  
	
  21.05

  	
   

  	
  Rights of Set off

  	
   

  	
  69

  
	
  21.06

  	
   

  	
  Expenses

  	
   

  	
  69

  
	
  21.07

  	
   

  	
  Adjustment to Fees

  	
   

  	
  70

  
	
  21.08

  	
   

  	
  Unused Credits

  	
   

  	
  71

  
	
  21.09

  	
   

  	
  [**]

  	
   

  	
  71

  
	
  21.10

  	
   

  	
  Shared Cost Savings

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 22.

  	
   

  	
  PAYMENT SCHEDULE

  	
   

  	
  71

  
	
  22.01

  	
   

  	
  Monthly Invoice

  	
   

  	
  71

  
	
  22.02

  	
   

  	
  Detailed Invoices

  	
   

  	
  71

  
	
  22.03

  	
   

  	
  Time of Payment

  	
   

  	
  72

  
	
  22.04

  	
   

  	
  Disputed Fees or Credits

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 23.

  	
   

  	
  TAXES

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 24.

  	
   

  	
  AUDIT RIGHTS/REGULATORY COMPLIANCE

  	
   

  	
  74

  
	
  24.01

  	
   

  	
  Processing

  	
   

  	
  74

  
	
  24.02

  	
   

  	
  Fees

  	
   

  	
  75

  
	
  24.03

  	
   

  	
  HHS Audit

  	
   

  	
  75

  

 

 iv
 

 

	
  24.04

  	
   

  	
  Unauthorized Access

  	
   

  	
  76

  
	
  24.05

  	
   

  	
  Record Retention

  	
   

  	
  76

  
	
  24.06

  	
   

  	
  Access and Reports

  	
   

  	
  76

  
	
  24.07

  	
   

  	
  Audit Software

  	
   

  	
  77

  
	
  24.08

  	
   

  	
  Facilities

  	
   

  	
  77

  
	
  24.09

  	
   

  	
  Third Party Audit

  	
   

  	
  77

  
	
  24.10

  	
   

  	
  HIPAA Compliance

  	
   

  	
  77

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 25.

  	
   

  	
  CONFIDENTIALITY

  	
   

  	
  86

  
	
  25.01

  	
   

  	
  Confidential Information

  	
   

  	
  86

  
	
  25.02

  	
   

  	
  Attorney-Client Privilege

  	
   

  	
  87

  
	
  25.03

  	
   

  	
  Injunctive Relief

  	
   

  	
  87

  
	
  25.04

  	
   

  	
  Unauthorized Acts

  	
   

  	
  87

  
	
  25.05

  	
   

  	
  Legal Action

  	
   

  	
  88

  
	
  25.06

  	
   

  	
  Return/Destruction of Confidential Information

  	
   

  	
  88

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 26.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  88

  
	
  26.01

  	
   

  	
  By THC

  	
   

  	
  88

  
	
  26.02

  	
   

  	
  By PSC

  	
   

  	
  89

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 27.

  	
   

  	
  DISCLAIMER

  	
   

  	
  90

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 28.

  	
   

  	
  TERMINATION

  	
   

  	
  90

  
	
  28.01

  	
   

  	
  Termination for Convenience

  	
   

  	
  90

  
	
  28.02

  	
   

  	
  Termination for Change in Control

  	
   

  	
  90

  
	
  28.03

  	
   

  	
  Termination for Cause

  	
   

  	
  91

  
	
  28.04

  	
   

  	
  Termination for Non-Payment

  	
   

  	
  91

  
	
  28.05

  	
   

  	
  Termination for Insolvency

  	
   

  	
  91

  
	
  28.06

  	
   

  	
  Termination for [**]

  	
   

  	
  92

  
	
  28.07

  	
   

  	
  Termination for Material Change in Business

  	
   

  	
  92

  
	
  28.08

  	
   

  	
  Partial Termination

  	
   

  	
  92

  
	
  28.09

  	
   

  	
  Other Terminations

  	
   

  	
  92

  
	
  28.10

  	
   

  	
  Divestiture of Affiliate

  	
   

  	
  92

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 29.

  	
   

  	
  TERMINATION FEE

  	
   

  	
  92

  
	
  29.01

  	
   

  	
  Termination for Convenience

  	
   

  	
  92

  
	
  29.02

  	
   

  	
  Termination for Change of Control

  	
   

  	
  92

  
	
  29.03

  	
   

  	
  Termination for Material Change in Business

  	
   

  	
  93

  
	
  29.04

  	
   

  	
  Proration

  	
   

  	
  93

  
	
  29.05

  	
   

  	
  Partial Termination of the Services

  	
   

  	
  93

  
	
  29.06

  	
   

  	
  No Additional Fees

  	
   

  	
  93

  

 

 v
 

 

	
  ARTICLE 30.

  	
   

  	
  TERMINATION ASSISTANCE

  	
   

  	
  94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 31.

  	
   

  	
  EXIT PLAN

  	
   

  	
  94

  
	
  31.01

  	
   

  	
  Exit Rights and Obligations

  	
   

  	
  94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 32.

  	
   

  	
  DISPUTE RESOLUTION

  	
   

  	
  95

  
	
  32.01

  	
   

  	
  Account Executives

  	
   

  	
  95

  
	
  32.02

  	
   

  	
  Management Committee

  	
   

  	
  96

  
	
  32.03

  	
   

  	
  Senior Management

  	
   

  	
  96

  
	
  32.04

  	
   

  	
  Arbitration

  	
   

  	
  96

  
	
  32.05

  	
   

  	
  Institution of Legal Proceedings

  	
   

  	
  97

  
	
  32.06

  	
   

  	
  Continuity of Services

  	
   

  	
  97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 33.

  	
   

  	
  INDEMNIFICATION

  	
   

  	
  97

  
	
  33.01

  	
   

  	
  By THC

  	
   

  	
  97

  
	
  33.02

  	
   

  	
  By PSC

  	
   

  	
  98

  
	
  33.03

  	
   

  	
  Indemnification Procedures

  	
   

  	
  100

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 34.

  	
   

  	
  DAMAGES

  	
   

  	
  101

  
	
  34.01

  	
   

  	
  Direct Damages

  	
   

  	
  101

  
	
  34.02

  	
   

  	
  Consequential Damages

  	
   

  	
  102

  
	
  34.03

  	
   

  	
  Performance Credits

  	
   

  	
  102

  
	
  34.04

  	
   

  	
  Exclusions

  	
   

  	
  102

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 35.

  	
   

  	
  INSURANCE, FINANCIAL STATEMENTS [**]

  	
   

  	
  103

  
	
  35.01

  	
   

  	
  Insurance

  	
   

  	
  103

  
	
  35.02

  	
   

  	
  [**]

  	
   

  	
  103

  
	
  35.03

  	
   

  	
  Financial Audit

  	
   

  	
  103

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 36.

  	
   

  	
  MISCELLANEOUS PROVISIONS

  	
   

  	
  103

  
	
  36.01

  	
   

  	
  Assignment and Change of Control

  	
   

  	
  103

  
	
  36.02

  	
   

  	
  Notices

  	
   

  	
  104

  
	
  36.03

  	
   

  	
  Counterparts

  	
   

  	
  105

  
	
  36.04

  	
   

  	
  Headings and References

  	
   

  	
  105

  
	
  36.05

  	
   

  	
  Relationship

  	
   

  	
  105

  
	
  36.06

  	
   

  	
  Consents, Approvals and Requests

  	
   

  	
  105

  
	
  36.07

  	
   

  	
  Severability

  	
   

  	
  105

  
	
  36.08

  	
   

  	
  Waiver

  	
   

  	
  106

  
	
  36.09

  	
   

  	
  Publicity

  	
   

  	
  106

  
	
  36.10

  	
   

  	
  Entire Agreement

  	
   

  	
  106

  
	
  36.11

  	
   

  	
  Amendments

  	
   

  	
  106

  
	
  36.12

  	
   

  	
  Governing Law

  	
   

  	
  106

  
	
  36.13

  	
   

  	
  Survival

  	
   

  	
  106

  
	
  36.14

  	
   

  	
  Third Party Beneficiaries

  	
   

  	
  107

  

 

 vi
 

 

	
  36.15

  	
   

  	
  Acknowledgment

  	
   

  	
  107

  
	
  36.16

  	
   

  	
  Interpretation

  	
   

  	
  107

  
	
  36.17

  	
   

  	
  Covenant of Further Assurances

  	
   

  	
  107

  
	
  36.18

  	
   

  	
  Solicitation

  	
   

  	
  107

  
	
  36.19

  	
   

  	
  Remedies

  	
   

  	
  109

  
	
  36.20

  	
   

  	
  Amendment and Restatement of 2001 Agreement

  	
   

  	
  109

  

 

 vii
 

LIST
OF EXHIBITS

	
  Exhibit 1

  	
   

  	
  Contingency Plan

  
	
  Exhibit 2

  	
   

  	
  Core Obligations

  
	
  Exhibit 3

  	
   

  	
  Applications Software

  
	
  Exhibit 4

  	
   

  	
  Core Project

  
	
  Exhibit 5

  	
   

  	
  Core Performance Standards and Core Performance
  Credits

  
	
  Exhibit 6

  	
   

  	
  Pre-approved Subcontractors

  
	
  Exhibit 7

  	
   

  	
  Service Locations

  
	
  Exhibit 8

  	
   

  	
  Key Employees

  
	
  Exhibit 9

  	
   

  	
  Third Party Agreements

  
	
  Exhibit 10

  	
   

  	
  Fees

  
	
  Exhibit 11

  	
   

  	
  Disaster Recovery Services

  
	
  Exhibit 12

  	
   

  	
  Audit Procedures

  
	
  Exhibit 13

  	
   

  	
  PSC Expense Policy

  
	
  Exhibit 14

  	
   

  	
  Critical Services

  
	
  Exhibit 15

  	
   

  	
  IT Migration Plan

  
	
  Exhibit 16

  	
   

  	
  Termination Fees

  
	
  Exhibit 17

  	
   

  	
  RESERVED

  
	
  Exhibit 18

  	
   

  	
  Terminations Assistance Services

  
	
  Exhibit 19

  	
   

  	
  Continuing Special Services Schedules

  
	
  Exhibit 20

  	
   

  	
  End User Customer Satisfaction Questionnaire

  

 

 viii

This SECOND AMENDED AND RESTATED INFORMATION TECHNOLOGY AND
MANAGEMENT AGREEMENT, entered into as of the Effective Date, by and
between TENET HEALTHCARE CORPORATION (“THC”)
and PEROT SYSTEMS CORPORATION (“PSC”),
amends and restates that certain Amended and Restated Information Technology
and Management Agreement, dated July 1, 2001, between THC and PSC, as amended
through November 15, 2006.

WITNESSETH:

WHEREAS,
THC and PSC desire to amend certain terms and conditions of the 2001 Agreement
and restate the terms of such agreement, as amended, in its entirety;

WHEREAS,
the overall goals of the 2001 Agreement were to update the 1995 Agreement to
provide THC with (1) flexibility to increase or decrease the scope and volume
of the services being provided by PSC, (2) continuously improving performance
standards and customer satisfaction, (3) competitive pricing, (4) increased
control over its technology direction and (5) the ability to effectively manage
and operate in a competitive fashion and to comply with regulatory and business
changes as they occur; and,

WHEREAS,
the overall goals of this Agreement are to update the 2001 Agreement to
recognize and adapt to changes in technologies and business practices since
2001 while continuing to provide THC with (1) flexibility to increase or
decrease the scope and volume of the services being provided by PSC, (2)
continuously improving performance standards and customer satisfaction, (3)
competitive pricing, (4) increased control over its technology direction and
(5) the ability to effectively manage and operate in a competitive fashion and
to comply with regulatory and business changes as they occur;

NOW,
THEREFORE, for and in
consideration of the agreements of the Parties set forth below, THC and PSC
agree as follows:

ARTICLE 1.                                DEFINITIONS.

The
following defined terms shall have the meanings specified below:

 

	
  (1)

  	
  “1995 Agreement” means that certain
  Information Technology and Management Agreement, dated July 1, 1995, between
  THC and PSC.

  
	
   

  	
   

  
	
  (2)

  	
  “2001 Agreement” means that certain Amended
  and Restated Information Technology and Management Agreement, dated July 1,
  2001, between THC and PSC, as amended through November 15, 2006.

  

 

 

	
  (3)

  	
  “2001 Core Fees” has the meaning set forth in
  Exhibit 10.

  
	
   

  	
   

  
	
  (4)

  	
  “2001 Core Obligations” has the meaning given
  to Core Obligations in the 2001 Agreement.

  
	
   

  	
   

  
	
  (5)

  	
  “2001 Core Performance Credits” means, in the
  event PSC fails, during the period beginning on the Effective Date up to the
  Commencement Date, to provide the 2001 Core Obligations in accordance with
  the 2001 Core Performance Standards, the performance credits to be incurred
  by PSC and applied against the 2001 Core Fees as identified in, and in
  accordance with, Exhibit 5 to the 2001 Agreement.

  
	
   

  	
   

  
	
  (6)

  	
  “2001 Core Performance Standards” means the
  levels of service applicable to the 2001 Core Obligations as described in the
  Exhibit 5 to the 2001 Agreement.

  
	
   

  	
   

  
	
  (7)

  	
  “2001 India Special Services Hourly Rate” has
  the meaning set forth in Exhibit 10  [Fees].

  
	
   

  	
   

  
	
  (8)

  	
  “2001 Onshore Special Services Hourly Rate”
  has the meaning set forth in Exhibit 10  [Fees].

  
	
   

  	
   

  
	
  (9)

  	
  “AAA” means the American Arbitration
  Association.

  
	
   

  	
   

  
	
  (10)

  	
  “Additional Equipment” has the meaning set
  forth in Section 3.09.

  
	
   

  	
   

  
	
  (11)

  	
  “Additional Software License” has the meaning
  set forth in Section 3.11.

  
	
   

  	
   

  
	
  (12)

  	
  “Affiliate” means, with respect to a Party,
  any entity controlled by (including a 50 percent, or lesser if controlling,
  interest in a joint venture), controlling or under common control with that
  Party. The term “Affiliate” shall also mean, with respect to THC, any entity
  managed or operated by THC or by any entity controlled by, controlling or
  under common control with THC; provided, however, any Tenet Free Standing
  Operation in which Tenet has an equity interest shall also be deemed, for
  purposes of this Agreement, an Affiliate.

  
	
   

  	
   

  
	
  (13)

  	
  “Agreed Tier 2 Offshore Fee Adjustment”
  means, with respect to each Agreed Tier 2 Tenet Software program, the dollar
  amount listed in the “Offshore Fee Adjustment” column of Exhibit 3  [Applications Software].

  
	
   

  	
   

  
	
  (14)

  	
  “Agreed Tier 2 Offshore Services” are those
  Core Enterprise Services identified in the IT Migration Plan for the Agreed
  Tier 2 Tenet

  

 

 2
 

 

	
  

  	
  Software which the Parties have agreed shall be
  implemented at the PSC Service Locations in India, as identified in Exhibit
  7, in accordance with the IT Migration Plan.

  
	
   

  	
   

  
	
  (15)

  	
  “Agreed Tier 2 Tenet Software” are those
  Tenet Enterprise Applications Software programs denoted with an “Agreed” in
  the “Agreed Tier 2 Offshore or Optional Tier 2 Offshore” column of Exhibit
  3  [Applications
  Software].

  
	
   

  	
   

  
	
  (16)

  	
  “Agreement” means this Second Amended and
  Restated Information Technology and Management Agreement by and between THC
  and PSC, dated as of the Effective Date.

  
	
   

  	
   

  
	
  (17)

  	
  “Base Index” means the CPI published in
  December one year prior to the Current Index.

  
	
   

  	
   

  
	
  (18)

  	
  “Benchmark Information” means the Industry
  Benchmark Information or Offshore Benchmark Information, or both, as the case
  may be.

  
	
   

  	
   

  
	
  (19)

  	
  “Benchmark Results” means the Industry
  Benchmark Results or the Offshore Benchmark Results, or both, as the case may
  be.

  
	
   

  	
   

  
	
  (20)

  	
  “Benchmark Review Period” means the sixty
  (60) day-period following receipt of the Benchmark Results during which Tenet
  and PSC review such Benchmark Results.

  
	
   

  	
   

  
	
  (21)

  	
  “Benchmarker” means the PSC Benchmarker or
  the Third Party Benchmarker, as the case may be.

  
	
   

  	
   

  
	
  (22)

  	
  “Benchmarking Processes” means the Industry
  Benchmarking Process and the Offshore Benchmarking Process, collectively.

  
	
   

  	
   

  
	
  (23)

  	
  “Benchmarks” means the Industry Benchmark and
  the Offshore Benchmark, collectively.

  
	
   

  	
   

  
	
  (24)

  	
  “Change(s)” means all changes to the Systems
  and the Core Obligations that would alter the functionality or technical
  environment of the Systems.

  
	
   

  	
   

  
	
  (25)

  	
  “Change Control Procedures” means the written
  procedures for handling and implementing Changes as set forth in the
  Management Procedures Manual and Article IV of Exhibit 2.

  
	
   

  	
   

  
	
  (26)

  	
  “Commencement Date” means January 1, 2007.

  

 

 3
 

 

	
  

  	
   

  
	
  (27)

  	
  “Confidential Information” of a Party means
  all confidential or proprietary information and documentation of such Party
  and its Affiliates, including (a) with respect to THC, all Tenet Data, Tenet
  Software, and other information of THC or its Affiliates or their customers
  that is not permitted to be disclosed to third parties under local laws,
  rules and regulations or information otherwise designated by Tenet as
  confidential or proprietary information and (b) the terms of this Agreement.

  
	
   

  	
   

  
	
  (28)

  	
  “Consents” means the PSC Consents and the
  Tenet Consents.

  
	
   

  	
   

  
	
  (29)

  	
  “Consequential Damages” means any indirect,
  special or consequential damages or amounts for loss of income, profits or
  savings arising out of or relating to Tenet’s or PSC’s performance under this
  Agreement.

  
	
   

  	
   

  
	
  (30)

  	
  “Contingency Plans” means the contingency
  plans set forth in Exhibit 1  [Contingency
  Plans] or set forth in any PSS or Service Request.

  
	
   

  	
   

  
	
  (31)

  	
  “Continuing Special Services Performance Credits”
  means, with respect to each Continuing Special Services Schedule with
  Continuing Special Services Performance Standards set forth in such
  Continuing Special Services Schedule, any performance credits described in
  such Continuing Special Services Schedule to be incurred by PSC and applied
  against the Special Services Fees set forth in such Continuing Special
  Services Schedule in the event PSC fails to provide the Special Services
  described in such Continuing Special Services Schedule in accordance with
  such Continuing Special Services Performance Standards as described in such
  Continuing Special Services Schedule.

  
	
   

  	
   

  
	
  (32)

  	
  “Continuing Special Services Performance
  Standards” means, with respect to each Continuing Special Services
  Schedule, any levels of service to be provided by PSC for the Special Service
  set forth in such Continuing Special Services Schedule pursuant to the terms
  of such Continuing Special Services Schedule.

  
	
   

  	
   

  
	
  (33)

  	
  “Continuing Special Services Schedules” means
  the written Special Services Schedules listed in Exhibit 19 that were
  mutually agreed to and executed by PSC and THC under the 2001 Agreement or
  the 1995 Agreement for the provision of Special Services.

  
	
   

  	
   

  
	
  (34)

  	
  “Contract Year” means each 12-month period
  commencing on the Effective Date or any anniversary of the Effective Date
  during the Term.

  

 

 4
 

 

	
  (35)

  	
  “Core Enterprise Annual Fee” has the meaning
  set forth in Exhibit 10  [Fees].

  
	
   

  	
   

  
	
  (36)

  	
  “Core Enterprise Applications Maintenance” is
  included in the Core Enterprise Services and has the meaning set forth in Section
  3.12.

  
	
   

  	
   

  
	
  (37)

  	
  “Core Enterprise Monthly Fee” has the meaning
  set forth in Exhibit 10  [Fees].

  
	
   

  	
   

  
	
  (38)

  	
  “Core Enterprise Services” means the services
  and obligations (a) set forth in Article I of Exhibit 2  [Core Obligations] and Exhibit 4  [Core Enterprise Project] and (b)
  otherwise identified in this Agreement as being part of the Core Enterprise
  Services.

  
	
   

  	
   

  
	
  (39)

  	
  “Core Enterprise Systems Software Maintenance”
  is included in the Core Enterprise Services and has the meaning set forth in Section
  3.14.

  
	
   

  	
   

  
	
  (40)

  	
  “Core Facility Monthly Fees” has the meaning
  set forth in Exhibit 10  [Fees].
  Core Facility Monthly Fees do not include approved pass-through expenses, if
  any, for additional circuits for Tenet Service Locations.

  
	
   

  	
   

  
	
  (41)

  	
  “Core Facility Services” means the services
  and obligations (a) set forth in Article II of Exhibit 2  [Core Obligations] and (b) otherwise identified in
  this Agreement as being part of the Core Facility Services.

  
	
   

  	
   

  
	
  (42)

  	
  “Core Fees” has the meaning set forth in Exhibit
  10  [Fees].

  
	
   

  	
   

  
	
  (43)

  	
  “Core Hospitals” has the meaning set forth in
  Exhibit 10  [Fees].

  
	
   

  	
   

  
	
  (44)

  	
  “Core Obligations” means (a) the Core
  Enterprise Services, (b) the Core Facility Services, and (c) the services and
  obligations otherwise identified in this Agreement as being part of the Core
  Obligations.

  
	
   

  	
   

  
	
  (45)

  	
  “Core Performance Credit(s)” means, in the
  event of a failure to provide the Core Obligations in accordance with the
  Core Performance Standards, the performance credits to be incurred by PSC and
  applied against the Core Fees as identified in, and in accordance with, Exhibit
  5  [Core Performance Standards and Core
  Performance Credits].

  
	
   

  	
   

  
	
  (46)

  	
  “Core Performance Standards” means the levels
  of service for the Core Obligations described in Exhibit 5  [Core Performance Standards and Core Performance
  Credits], as may be adjusted pursuant to Section 10.03.

  

 

 5
 

 

	
  (47)

  	
  “Core Project” is included as part of Core
  Enterprise Services and has the meaning set forth in Section 4.02.

  
	
   

  	
   

  
	
  (48)

  	
  “Core Project Acceptance Test” means any
  mutually agreed upon acceptance test(s) in respect of the Core Project
  described in Exhibit 4  [Core
  Project].

  
	
   

  	
   

  
	
  (49)

  	
  “Core Project Schedule” means any
  implementation schedule in respect of the Core Project set forth in Exhibit
  4  [Core Project].

  
	
   

  	
   

  
	
  (50)

  	
  “CPI” means the Consumer Price Index for all
  Urban Consumers, U.S. City Average, for all Items (1982-1984 = 100), as
  published by the Bureau of Labor Statistics of the United States Department
  of Labor.

  
	
   

  	
   

  
	
  (51)

  	
  “Critical Services” means those Services set
  forth in Exhibit 14  [Critical
  Services].

  
	
   

  	
   

  
	
  (52)

  	
  “Current Environment” shall mean the
  information system technology environment existing at each of the Tenet
  Service Locations as of the Effective Date.

  
	
   

  	
   

  
	
  (53)

  	
  “Current Index” means the CPI published in
  December of the prior calendar year.

  
	
   

  	
   

  
	
  (54)

  	
  “Data Aggregation” means “data aggregation”
  as such term is defined under HIPAA as contained in Section 164.501,
  as amended from time to time.

  
	
   

  	
   

  
	
  (55)

  	
  “Designated Record Set” means “designated
  record set” (as such term is defined in 45 CFR Part 164.501 of HIPAA) stored
  on the Systems operated and maintained by PSC under this Agreement or
  otherwise in the possession of PSC or its agents, contractors or subcontractors.

  
	
   

  	
   

  
	
  (56)

  	
  “Developed Software” means PSC Developed
  Software and Tenet Developed Software, collectively.

  
	
   

  	
   

  
	
  (57)

  	
  “Development Baseline Annual Hours” has the
  meaning set forth in Section 8.04.

  
	
   

  	
   

  
	
  (58)

  	
  “Development Baseline Monthly Hours” means, with
  respect to each month during the Term, one-twelfth (1/12th) of the
  Development Baseline Annual Hours for the Contract Year in which such month
  occurs.

  
	
   

  	
   

  
	
  (59)

  	
  “Development Services” has the meaning set
  forth in Section 8.03.

  

 

 6
 

 

	
  (60)

  	
  “Direct Damages Cap” means $[**].

  
	
   

  	
   

  
	
  (61)

  	
  “Disaster” means any event which is not
  solely within the control of Tenet which (a) causes an unscheduled disruption
  in access to the Tenet Enterprise Applications Software at any Tenet Service
  Location or (b) causes one or more of the Critical Services to be unavailable
  at any Tenet Service Location.

  
	
   

  	
   

  
	
  (62)

  	
  “Documentation” means, except as set forth in
  Section 16.02 and Section 16.03 with respect to the PSC
  Software, all documentation, written materials, work papers, configurations,
  manuals (including the Management Procedures Manual and the Change Control
  Procedures) and other work product prepared by or on behalf of PSC or
  otherwise used by PSC, PSC Project Personnel or PSC Company Contractors in
  connection with providing the Core Obligations.

  
	
   

  	
   

  
	
  (63)

  	
  “Effective Date” means November 16, 2006.

  
	
   

  	
   

  
	
  (64)

  	
  “Electronic Media” means “electronic media”
  as defined under HIPAA as contained in 45 CFR Part 162.103, as amended from
  time to time.

  
	
   

  	
   

  
	
  (65)

  	
  “Electronic Protected Health Information”
  means “electronic protected health information” (as such term is defined
  under HIPAA as contained in 45 CFR 160.103, as amended from time to time)
  received by PSC, PSC Project Personnel or PSC Company Contractors from THC or
  any of its Affiliates, or which is created or derived by PSC, PSC Project
  Personnel or PSC Company Contractors on behalf of THC or any of its
  Affiliates pursuant to this Agreement.

  
	
   

  	
   

  
	
  (66)

  	
  “Enterprise Machines” means the PSC
  Enterprise Machines and the Tenet Enterprise Machines.

  
	
   

  	
   

  
	
  (67)

  	
  “Enterprise Refresh” has the meaning set
  forth in Section 3.08.

  
	
   

  	
   

  
	
  (68)

  	
  “Enterprise Software” means the Tenet
  Enterprise Software and the PSC Enterprise Software, collectively.

  
	
   

  	
   

  
	
  (69)

  	
  “Enterprise Systems” means the PSC Enterprise
  Systems and the Tenet Enterprise Systems, collectively.

  
	
   

  	
   

  
	
  (70)

  	
  “Enterprise Systems Software” means any
  operating system software required to operate the Machines on which the Tenet
  Enterprise Applications Software is installed and operating or to support the
  Tenet Enterprise Applications Software, which may include Developed Software.

  

 

 7
 

 

	
  (71)

  	
  “Facility Machines” means the PSC Facility
  Machines and the Tenet Facility Machines.

  
	
   

  	
   

  
	
  (72)

  	
  “Facility Transitioned Employees” has the
  meaning set forth in Article II of Exhibit 2.

  
	
   

  	
   

  
	
  (73)

  	
  “Federal Healthcare Programs” has the meaning
  set forth in Section 14.09(2)(c).

  
	
   

  	
   

  
	
  (74)

  	
  “Federal Privacy Regulations” means the
  federal privacy regulations under HIPAA as contained in 45 CFR Parts 160 and
  164, as amended from time to time.

  
	
   

  	
   

  
	
  (75)

  	
  “Federal Security Regulations” means the
  federal security standards under HIPAA as contained in 45 CFR Parts 160, 162
  and 164, as amended from time to time.

  
	
   

  	
   

  
	
  (76)

  	
  “Federal Transaction Regulations” means the
  federal transaction standards under HIPAA as contained in 45 CFR Parts 160
  and 162, as amended from time to time.

  
	
   

  	
   

  
	
  (77)

  	
  “Fees” means the Core Fees and the Special
  Services Fees, collectively.

  
	
   

  	
   

  
	
  (78)

  	
  “Force Majeure Event” means any failure or
  delay caused, directly or indirectly, by fire, flood, earthquake, elements of
  nature or acts of God, acts of war, terrorism, riots, civil disorders,
  rebellions or revolutions, strikes, lockouts, or labor difficulties, court
  order, third party nonperformance (except the non-performing Party’s
  Affiliates, subcontractors or agents or the subcontractors or agents of such
  Affiliates) or any other similar cause beyond the reasonable control of a
  Party and without the fault or negligence of such Party.

  
	
   

  	
   

  
	
  (79)

  	
  “Health Care Operations” means “health care
  operations” as such term is defined under HIPAA as contained in Section
  164.501, as amended from time to time.

  
	
   

  	
   

  
	
  (80)

  	
  “Healthcare Exclusion Lists” has the meaning
  set forth in Section 14.09(2)(a).

  
	
   

  	
   

  
	
  (81)

  	
  “Hearing” means a non-binding resolution
  procedure whereby each Party presents its case at a hearing before a panel
  consisting of two senior executives of each of the Parties and, if such
  executives can agree upon such an individual, a mutually acceptable neutral
  advisor.

  

 

 8
 

 

	
  (82)

  	
  “HIPAA” means the Health Insurance
  Portability and Accountability Act of 1996, as amended and as such may be
  further amended from time to time, including all final rules and regulations
  promulgated thereunder.

  
	
   

  	
   

  
	
  (83)

  	
  “Improved Technology” means any new
  commercially available PSC information processing technology developments,
  including new software and hardware developments, that could reasonably be
  expected to have a positive impact on Tenet’s business.

  
	
   

  	
   

  
	
  (84)

  	
  “Indemnifying Party” means the Party to whom
  the Indemnitee shall give notice of a claim that is covered by Section
  33.01 or Section 33.02.

  
	
   

  	
   

  
	
  (85)

  	
  “Indemnitee” means the party against whom a
  third party makes a claim covered by Section 33.01 or Section 33.02
  with respect to which such party seeks indemnification.

  
	
   

  	
   

  
	
  (86)

  	
  “India Special Services Hourly Rate” has the
  meaning set forth in Exhibit 10 [Fees].

  
	
   

  	
   

  
	
  (87)

  	
  “Industry Benchmark” has the meaning set
  forth in Section 11.01, which includes each comparison measurement of
  the Industry Benchmarking Process.

  
	
   

  	
   

  
	
  (88)

  	
  “Industry Benchmark Information” means the
  objective third party information that will be required to conduct or support
  the Industry Benchmark, as it is jointly determined by THC and PSC.

  
	
   

  	
   

  
	
  (89)

  	
  “Industry Benchmark Results” means the final
  results of the Industry Benchmarking Process delivered by the Benchmarker in
  a written report including identification of the figures and supporting
  documentation.

  
	
   

  	
   

  
	
  (90)

  	
  “Industry Benchmarking Process” means the
  objective measurement and comparison process (utilizing baselines and
  industry standards agreed to by THC and PSC) established by THC and PSC
  pursuant to Section 11.01 for the Industry Benchmark.

  
	
   

  	
   

  
	
  (91)

  	
  “Initial Term” has the meaning set forth in Section
  2.01.

  
	
   

  	
   

  
	
  (92)

  	
  “ISD” means the Information Services
  Department of Tenet.

  
	
   

  	
   

  
	
  (93)

  	
  “IT Migration Plan” has the meaning set forth
  in Section 13.01.

  

 

 9
 

 

	
  (94)

  	
  “Key Employee(s)” means the PSC Project
  Persons who are assigned to the key positions identified in Exhibit 8  [Key Employees], plus such other PSC
  Project Persons identified, and agreed upon, from time to time by the Tenet
  Account Executive and the PSC Client Executive as important to a particular
  Core Project.

  
	
   

  	
   

  
	
  (95)

  	
  “Machines” means the Tenet Machines and the
  PSC Machines, collectively.

  
	
   

  	
   

  
	
  (96)

  	
  “Management Committee” has the meaning set
  forth in Section 14.01.

  
	
   

  	
   

  
	
  (97)

  	
  “Management Procedures Manual” has the
  meaning set forth in Section 15.01.

  
	
   

  	
   

  
	
  (98)

  	
  “Mexico Special Services Hourly Rate” has the
  meaning set forth in Exhibit 10  [Fees].

  
	
   

  	
   

  
	
  (99)

  	
  “Notice of Breach” means a written notice
  from one Party to this Agreement to the other Party specifying the nature of
  a breach of this Agreement in reasonable detail.

  
	
   

  	
   

  
	
  (100)

  	
  “Notice of Offshore Relocation” has the
  meaning set forth in Section 13.05(1).

  
	
   

  	
   

  
	
  (101)

  	
  “Offshore Benchmark” has the meaning set
  forth in Section 11.01, which includes each comparison measurement of
  the Offshore Benchmarking Process.

  
	
   

  	
   

  
	
  (102)

  	
  “Offshore Benchmark Information” means the
  objective performance metric information that will be required in order to
  conduct or support the Offshore Benchmark, as it is jointly determined by THC
  and PSC.

  
	
   

  	
   

  
	
  (103)

  	
  “Offshore Benchmark Results” means the final
  results of the Offshore Benchmarking Process delivered by the Benchmarker in
  a written report including identification of the figures and supporting
  documentation.

  
	
   

  	
   

  
	
  (104)

  	
  “Offshore Benchmarking Process” means the
  objective measurement and comparison process (utilizing quality performance
  metrics agreed to by THC and PSC) established by THC and PSC pursuant to Section
  11.01 for the Offshore Benchmark.

  
	
   

  	
   

  
	
  (105)

  	
  “Offshore Remediation Plan” has the meaning
  set forth in Section 13.05(1)(b).

  

 

 10

 

	
  (106)

  	
  “Offshore Special Services” has the meaning
  set forth in Section 13.04.

  
	
   

  	
   

  
	
  (107)

  	
  “Onshore Special Services Hourly Rate” has
  the meaning set forth in Exhibit 10  [Fees].

  
	
   

  	
   

  
	
  (108)

  	
  “Optional Tier 2 Offshore Fee Adjustment” means,
  with respect to each Optional Tier 2 Tenet Software program, the dollar
  amount listed in the “Offshore Fee Adjustment” column of Exhibit 3  [Applications
  Software].

  
	
   

  	
   

  
	
  (109)

  	
  “Optional Tier 2 Offshore Services” are those
  Core Enterprise Services identified in the IT Migration Plan for the Optional
  Tier 2 Tenet Software for which THC has the option to include in the Core
  Enterprise Services to be implemented in the PSC Service Locations in India,
  as identified in Exhibit 7, in accordance with the IT Migration Plan.

  
	
   

  	
   

  
	
  (110)

  	
  “Optional Tier 2 Tenet Software” are those
  Tenet Enterprise Applications Software programs denoted with an “Optional” in
  the “Agreed Tier 2 Offshore or Optional Tier 2 Offshore” column of Exhibit
  3  [Applications
  Software].

  
	
   

  	
   

  
	
  (111)

  	
  “Other Offshore Special Services Hourly Rate”
  has the meaning set forth in Exhibit 10  [Fees].

  
	
   

  	
   

  
	
  (112)

  	
  “Parties” means THC and PSC, collectively.

  
	
   

  	
   

  
	
  (113)

  	
  “Party” means either THC or PSC, as the case
  may be.

  
	
   

  	
   

  
	
  (114)

  	
  “Performance Credits” means the 2001 Core
  Performance Credits, the Core Performance Credits, the Special Services
  Performance Credits and the Continuing Special Services Performance Credits,
  collectively.

  
	
   

  	
   

  
	
  (115)

  	
  “Performance Standards” means the 2001 Core
  Performance Standards, the Core Performance Standards, the Special Services
  Performance Standards and the Continuing Special Services Performance
  Standards, collectively.

  
	
   

  	
   

  
	
  (116)

  	
  “Privileged Work Product” means certain
  documents, data and databases created by PSC and its subcontractors and
  agents for Tenet and all associated communications thereto subject to the
  attorney-client privilege or the attorney work product privilege.

  
	
   

  	
   

  
	
  (117)

  	
  “Procurement Management Fee” has the meaning
  set forth in Section 6.02(2).

  

 

 11
 

 

	
  (118)

  	
  “Procurement Procedures” has the meaning set
  forth in Section 6.02(1).

  
	
   

  	
   

  
	
  (119)

  	
  “Protected Health Information” means
  “protected health information” (as such term is defined under HIPAA as
  contained in 45 CFR 164.501, as amended from time to time) received by PSC,
  PSC Project Personnel or PSC Company Contractors from THC or any of its
  Affiliates, or which is created or derived by PSC, PSC Project Personnel or
  PSC Company Contractors on behalf of THC or any of its Affiliates pursuant to
  this Agreement.

  
	
   

  	
   

  
	
  (120)

  	
  “PSC” means Perot Systems Corporation, a
  Delaware corporation, with a principal place of business at 2300 West Plano
  Parkway, Plano, Texas, 75075.

  
	
   

  	
   

  
	
  (121)

  	
  “PSC Benchmarker” has the meaning set forth
  in Section 11.02.

  
	
   

  	
   

  
	
  (122)

  	
  “PSC Client Executive” has the meaning set
  forth in Section 14.02.

  
	
   

  	
   

  
	
  (123)

  	
  “PSC Company Contractor” means (a) the PSC
  Affiliates performing Services; and (b) any other subcontractor or agent of
  PSC or such PSC Affiliates (other than individual subcontractors or agents of
  PSC or PSC Affiliates all of whom that are assigned to perform any of the
  Services are considered PSC Project Persons) to whom PSC or a PSC Affiliate
  subcontracts any of the Services under this Agreement.

  
	
   

  	
   

  
	
  (124)

  	
  “PSC Consents” means all consents, approvals,
  authorizations, notices, requests and acknowledgements that are necessary to
  allow (a) PSC to use the PSC Software, the PSC Developed Software and the PSC
  Machines to provide the Services, (b) PSC to assign to Tenet all rights and
  title in the PSC Developed Software in accordance with the terms of this
  Agreement, and (d) Tenet to use the PSC Software and the PSC Developed
  Software during the Term and upon expiration or termination of this Agreement
  pursuant to Article 30.

  
	
   

  	
   

  
	
  (125)

  	
  “PSC Developed Software” means (a) any
  software and related documentation developed pursuant to this Agreement by
  PSC, PSC Project Personnel or PSC Company Contractors (including any
  modifications or enhancements to the Tenet Software made by PSC, PSC Project
  Personnel or PSC Company Contractors pursuant to this Agreement); and (b) any
  modifications or enhancements to Tenet Developed Software by PSC, PSC Project
  Personnel or PSC Company Contractors pursuant to this Agreement, but
  excluding any Tenet Developed Software (except as provided in clause (b)
  above).

  

 

 12
 

 

	
  (126)

  	
  “PSC Enterprise Machines” means those
  machines and equipment owned or leased by PSC or a PSC Affiliate that are
  utilized by PSC in the performance of the Core Enterprise Services under this
  Agreement.

  
	
   

  	
   

  
	
  (127)

  	
  “PSC Enterprise Proprietary Software” means
  the software and related documentation (a) owned by PSC or a PSC Affiliate
  prior to the Effective Date; or (b) of which PSC or a PSC Affiliate acquires
  ownership after the Effective Date, or is developed by or on behalf of PSC or
  a PSC Affiliate after the Effective Date, and, in either case, used to
  provide the Core Enterprise Services, including any Enterprise System
  Software owned by PSC or a PSC Affiliate; excluding, however, Tenet Software
  and the Developed Software.

  
	
   

  	
   

  
	
  (128)

  	
  “PSC Enterprise Software” means the PSC
  Enterprise Proprietary Software and the PSC Enterprise Third Party Software,
  collectively.

  
	
   

  	
   

  
	
  (129)

  	
  “PSC Enterprise Systems” means the PSC
  Enterprise Software and the PSC Enterprise Machines, collectively.

  
	
   

  	
   

  
	
  (130)

  	
  “PSC Enterprise Third Party Software” means
  all software and related documentation licensed or leased from a third party
  by PSC or a PSC Affiliate prior to or after the Effective Date and used to
  provide the Core Enterprise Services, including any Enterprise System
  Software licensed or leased from a third party by PSC or a PSC Affiliate.

  
	
   

  	
   

  
	
  (131)

  	
  “PSC Facility Machines” means those machines
  and equipment owned or leased by PSC or a PSC Affiliate that are utilized by
  PSC in the performance of the Core Facility Services under this Agreement;
  excluding, however, any such machines and equipment that also constitute PSC
  Enterprise Machines.

  
	
   

  	
   

  
	
  (132)

  	
  “PSC Facility Proprietary Software” means the
  software and related documentation (a) owned by PSC or a PSC Affiliate prior
  to the Effective Date; or (b) of which PSC or a PSC Affiliate acquires
  ownership after the Effective Date, or is developed by or on behalf of PSC or
  a PSC Affiliate after the Effective Date, and, in either case, used to
  provide the Core Facility Services; excluding, however, (i) any such software
  and related documentation that also constitutes PSC Enterprise Software, (ii)
  Tenet Software, or (iii) the Developed Software.

  
	
   

  	
   

  
	
  (133)

  	
  “PSC Facility Software” means the PSC
  Facility Proprietary Software and the PSC Facility Third Party Software.

  

 

 13
 

 

	
  (134)

  	
  “PSC Facility Systems” means the PSC Facility
  Software and the PSC Facility Machines, collectively.

  
	
   

  	
   

  
	
  (135)

  	
  “PSC Facility Third Party Software” means all
  software and related documentation licensed or leased from a third party by
  PSC or a PSC Affiliate prior to or after the Effective Date and used to
  provide the Core Facility Services; excluding, however, any such software and
  related documentation that also constitutes PSC Enterprise Software.

  
	
   

  	
   

  
	
  (136)

  	
  “PSC Help Desk” has the meaning set forth in Exhibit
  2  [Core
  Obligations]

  
	
   

  	
   

  
	
  (137)

  	
  “PSC India Resources” means PSC Project
  Personnel whose primary place of employment is located in India and such
  individuals provide the applicable Services to Tenet from India.

  
	
   

  	
   

  
	
  (138)

  	
  “PSC Machines” means the PSC Enterprise
  Machines, the PSC Facility Machines and the PSC Special Services Machines.

  
	
   

  	
   

  
	
  (139)

  	
  “PSC Mexico Resources” means PSC Project Personnel
  whose primary place of employment is located in Mexico and such individuals
  provide the applicable Services to Tenet from Mexico.

  
	
   

  	
   

  
	
  (140)

  	
  “PSC Onshore Resources” means PSC Project
  Personnel whose primary place of employment is located in the United States
  and such individuals provide the applicable Services to Tenet from the United
  States.

  
	
   

  	
   

  
	
  (141)

  	
  “PSC Other Offshore Resources” means PSC
  Project Personnel whose primary place of employment is located in a country
  outside the United States (other than India or Mexico) and such individuals
  provide the applicable Services to Tenet from a country outside the United
  States (other than India or Mexico).

  
	
   

  	
   

  
	
  (142)

  	
  “PSC Project Person” means any individual who
  is (a) an employee of (i) PSC; (ii) a PSC Affiliate, or (iii) a PSC Company
  Contractor (other than a PSC Affiliate); or (b) an individual subcontractor
  or agent of (i) PSC, (ii) a PSC Affiliate; or (iii) a PSC Company Contractor
  (other than a PSC Affiliate), in each case, to the extent such individual is
  assigned to perform any of the Services under this Agreement.

  
	
   

  	
   

  
	
  (143)

  	
  “PSC Project Personnel” means all PSC Project
  Persons, collectively.

  

 

 14
 

 

	
  (144)

  	
  “PSC Proprietary Software” means the PSC
  Enterprise Proprietary Software, the PSC Facility Proprietary Software and
  the PSC Special Services Proprietary Software, collectively.

  
	
   

  	
   

  
	
  (145)

  	
  “PSC Quality Manager” has the meaning set
  forth in Section 14.03.

  
	
   

  	
   

  
	
  (146)

  	
  “PSC Service Locations” means the service
  locations owned, leased or under the control of PSC or a PSC Affiliate that
  are (i) set forth in Article I of Exhibit 7  [Service Locations]  or (ii) are
  approved by the Management Committee.

  
	
   

  	
   

  
	
  (147)

  	
  “PSC Software” means the PSC Enterprise
  Software, the PSC Facility Software and the PSC Special Services Software,
  collectively.

  
	
   

  	
   

  
	
  (148)

  	
  “PSC Special Services Machines” means those
  machines and equipment owned or leased by PSC or a PSC Affiliate that are
  utilized by PSC in the performance of Special Services under this Agreement;
  excluding, however, any such machines and equipment that also constitute PSC
  Enterprise Machines or PSC Facility Machines.

  
	
   

  	
   

  
	
  (149)

  	
  “PSC Special Services Proprietary Software”
  means the software and related documentation (a) owned by PSC or a PSC
  Affiliate prior to the Effective Date; or (b) of which PSC or a PSC Affiliate
  acquires ownership after the Effective Date, or is developed by or on behalf
  of PSC or a PSC Affiliate after the Effective Date, and, in either case, used
  to provide Special Services under this Agreement; excluding, however, (i) any
  such software and related documentation that also constitutes PSC Enterprise
  Software or PSC Facility Software, (ii) Tenet Software, or (iii) the
  Developed Software.

  
	
   

  	
   

  
	
  (150)

  	
  “PSC Special Services Software” means the PSC
  Special Services Proprietary Software and the PSC Special Services Third
  Party Software, collectively.

  
	
   

  	
   

  
	
  (151)

  	
  “PSC Special Services Systems” means the PSC
  Special Services Software and the PSC Special Services Machines,
  collectively.

  
	
   

  	
   

  
	
  (152)

  	
  “PSC Special Services Third Party Software”
  means all software and related documentation licensed or leased from a third
  party by PSC or a PSC Affiliate prior to or after the Effective Date and used
  to provide Special Services under this Agreement; excluding, however, any
  such software and related documentation that also constitutes PSC Enterprise
  Software or PSC Facility Software.

  

 

 15
 

 

	
  (153)

  	
  “PSC Systems” means the PSC Enterprise
  Systems, the PSC Facility Systems and the PSC Special Services Systems,
  collectively.

  
	
   

  	
   

  
	
  (154)

  	
  “PSC Third Party Software” means the PSC
  Enterprise Third Party Software, the PSC Facility Third Party Software and
  the PSC Special Services Third Party Software, collectively.

  
	
   

  	
   

  
	
  (155)

  	
  “PSS” or “Project Services Schedule”
  has the meaning set forth in Section 8.01(1)(b).

  
	
   

  	
   

  
	
  (156)

  	
  “PSS Proposal” has the meaning set forth in Section
  8.01(1)(a)

  
	
   

  	
   

  
	
  (157)

  	
  “Qualified Benchmarker” has the meaning set
  forth in Section 11.02.

  
	
   

  	
   

  
	
  (158)

  	
  “Reassignment Waiver(s)” means, in respect of
  any Key Employee, the individual’s (a) voluntary resignation from PSC, (b)
  dismissal by PSC for (i) misconduct (e.g., fraud, drug abuse, theft)
  or (ii) unsatisfactory performance as determined by PSC in respect of his or
  her duties and responsibilities to Tenet pursuant to this Agreement or (c)
  inability or unavailability to work due to a death, disability, military
  service leave or any other leave under applicable laws, including the Family
  Medical and Leave Act.

  
	
   

  	
   

  
	
  (159)

  	
  “Renewal Term(s)” has the meaning set forth
  in Section 2.02.

  
	
   

  	
   

  
	
  (160)

  	
  “Report(s)” means those reports (a) prepared
  by PSC as of the Effective Date and (b) as THC may reasonably require from
  time to time during the Term to meet Tenet’s operational requirements.

  
	
   

  	
   

  
	
  (161)

  	
  “Required By Law” means “required by law” as
  such term is defined under HIPAA as contained in Section 164.103, as amended
  from time to time.

  
	
   

  	
   

  
	
  (162)

  	
  “Sales Taxes” has the meanings set forth in Section
  23.02.

  
	
   

  	
   

  
	
  (163)

  	
  “Savings” has the meaning set forth in Section
  21.10.

  
	
   

  	
   

  
	
  (164)

  	
  RESERVED

  
	
   

  	
   

  
	
  (165)

  	
  RESERVED

  
	
   

  	
   

  
	
  (166)

  	
  “Security Incident” means “security incident”
  as such term is defined under HIPAA as contained in Section 164.304, as
  amended form time to time. “Security Incident” does not include trivial incidents
  that (i) occur on a frequent basis, such as scans or “pings” that constitute
  unsuccessful attempts to penetrate computer networks or servers; and 

  

 

 16
 

 

	
  

  	
  (ii) do not result in loss of data or a degradation
  of computer networks or servers.

  
	
   

  	
   

  
	
  (167)

  	
  “Service Locations” means the Tenet Service
  Locations and the PSC Service Locations.

  
	
   

  	
   

  
	
  (168)

  	
  “Service Request” has the meaning set forth
  in Section 8.01(2)(d).

  
	
   

  	
   

  
	
  (169)

  	
  “Service Request Proposal” has the meaning
  set forth in Section 8.01(2)(a).

  
	
   

  	
   

  
	
  (170)

  	
  “Services” means the Core Obligations and the
  Special Services, collectively.

  
	
   

  	
   

  
	
  (171)

  	
  “SMS” shall mean Siemens Medical Systems
  Solutions Health Services Corporation, a Delaware corporation, formerly known
  as Shared Medical Systems Corporation.

  
	
   

  	
   

  
	
  (172)

  	
  “SMS Software” shall mean the software
  provided by SMS to certain Tenet Service Locations.

  
	
   

  	
   

  
	
  (173)

  	
  “Software” means the PSC Software, the Tenet
  Software and the Developed Software, collectively.

  
	
   

  	
   

  
	
  (174)

  	
  “Special Services” means those services
  requested by THC of PSC that are (1) in addition to, or outside the scope of,
  the Core Obligations or (2) which require resources not covered by the Core
  Fees. Special Services include Development Services.

  
	
   

  	
   

  
	
  (175)

  	
  “Special Services Fees” means the fees
  charged to THC for Special Services provided by PSC under a PSS or a Service
  Request which unless set forth in the applicable PSS or Service Request or
  Continuing Special Services Schedule or otherwise agreed in writing by the
  Parties, shall be charged on a time and materials basis at the applicable
  Special Services Hourly Rate.

  
	
   

  	
   

  
	
  (176)

  	
  “Special Services Hourly Rate” means the 2001
  India Special Services Hourly Rate, the 2001 Onshore Special Services Hourly
  Rate, the India Special Services Hourly Rate, the Onshore Special Services
  Hourly Rate, the Mexico Special Services Hourly Rate or the Other Offshore
  Special Services Hourly Rate, as applicable, pursuant to the terms of Article
  II of Exhibit 10  [Fees].

  
	
   

  	
   

  
	
  (177)

  	
  “Special Services Performance Credit” means,
  with respect to each PSS or Service Request that contains Special Services Performance

  

 

 17
 

 

	
  

  	
  Standards, any performance credits described in such
  PSS or Service Request to be incurred by PSC and applied against the Special
  Services Fees for such PSS or Service Request in the event PSC fails to
  provide the Special Services set forth in such PSS or Service Request in
  accordance with such Special Services Performance Standards, as identified in
  such PSS or Service Request.

  
	
   

  	
   

  
	
  (178)

  	
  “Special Services Performance Standards”
  means, with respect to each PSS or Service Request executed by PSC and Tenet,
  any levels of service to be provided by PSC for the Special Services
  described in such PSS or Service Request (a) pursuant to the terms of such
  PSS or a Service Request executed by PSC and THC or (b) otherwise mutually
  established in writing by THC and PSC.

  
	
   

  	
   

  
	
  (179)

  	
  “Systems” means the PSC Systems and the Tenet
  Systems, collectively.

  
	
   

  	
   

  
	
  (180)

  	
  “Tenet” means THC and all Affiliates of Tenet
  to whom PSC is providing Services under this Agreement.

  
	
   

  	
   

  
	
  (181)

  	
  “Tenet Account Executive” means the
  individual who is appointed by THC who will act as the primary point of
  contact for PSC with respect to each Party’s obligations under this
  Agreement.

  
	
   

  	
   

  
	
  (182)

  	
  “Tenet Consents” means all consents,
  approvals, authorizations, notices, requests and acknowledgements that are
  necessary to allow PSC to use the Tenet Software, the Tenet Developed
  Software, the Tenet Machines, and the services under Tenet’s third party
  service contracts to provide the Services.

  
	
   

  	
   

  
	
  (183)

  	
  “Tenet Data” means all data and information
  submitted to PSC by Tenet or processed by PSC on Tenet’s behalf in connection
  with the Services including, but not limited to, the identity of patients,
  Protected Health Information, Designated Record Sets, the content of any
  medical records, the content of any Medicare, Medicaid or other medical care
  claims submission or reimbursement, and financial and tax information.

  
	
   

  	
   

  
	
  (184)

  	
  “Tenet Developed Software” means any code or
  materials provided or created by Tenet, its subcontractors or agents that is
  contained in PSC Developed Software, excluding any modifications or
  enhancements to Tenet Developed Software by PSC, PSC Project Personnel or PSC
  Company Contractors pursuant to this Agreement.

  
	
   

  	
   

  
	
  (185)

  	
  “Tenet Enterprise Applications Software”
  means the software set forth in Exhibit 3  [Applications Software].

  

 

 18
 

 

	
  (186)

  	
  “Tenet Enterprise End-User Machines” means
  the devices, including personal computers, dedicated terminals, mainframe
  printers, thin-client terminals, and hand-held devices, which are owned by
  Tenet and used by Tenet to access the Tenet Enterprise Applications Software
  supported by PSC, or the Core Enterprise Services provided by PSC, under this
  Agreement.

  
	
   

  	
   

  
	
  (187)

  	
  “Tenet Enterprise Machines” means (a) those
  machines and equipment owned or leased by Tenet (i) that are operated by PSC
  under this Agreement as part of the Core Enterprise Services, or (ii) which
  PSC requires access in order to perform the Core Enterprise Services under
  this Agreement; and (b) the Tenet Enterprise End-User Machines.

  
	
   

  	
   

  
	
  (188)

  	
  “Tenet Enterprise Proprietary Software” means
  the Tenet Enterprise Applications Software and any Enterprise System
  Software, in either case, owned by Tenet.

  
	
   

  	
   

  
	
  (189)

  	
  “Tenet Enterprise Software” means the Tenet
  Enterprise Proprietary Software and the Tenet Enterprise Third Party
  Software, collectively.

  
	
   

  	
   

  
	
  (190)

  	
  “Tenet Enterprise Systems” means the Tenet
  Enterprise Software and the Tenet Enterprise Machines, collectively.

  
	
   

  	
   

  
	
  (191)

  	
  “Tenet Enterprise Third Party Software” means
  the software and related documentation licensed or leased from a third party
  by Tenet prior to or after the Effective Date and used by PSC to provide the
  Core Enterprise Services, including any Tenet Enterprise Applications
  Software and Enterprise System Software licensed or leased from a third party
  by Tenet.

  
	
   

  	
   

  
	
  (192)

  	
  “Tenet Facility Machines” has the meaning set
  forth in Article II of Exhibit 2  [Core Obligations].

  
	
   

  	
   

  
	
  (193)

  	
  “Tenet Facility Software” has the meaning set
  forth in Article II of Exhibit 2  [Core Obligations].

  
	
   

  	
   

  
	
  (194)

  	
  “Tenet Facility Systems” means the Tenet
  Facility Software and the Tenet Facility Machines, collectively.

  
	
   

  	
   

  
	
  (195)

  	
  “Tenet Free Standing Operations” has the
  meaning set forth in Exhibit 10  [Fees].

  
	
   

  	
   

  
	
  (196)

  	
  “Tenet Machines” means the Tenet Enterprise
  Machines, the Tenet Facility Machines and the Tenet Special Services
  Machines, collectively.

  

 

 19
 

 

	
  (197)

  	
  “Tenet Proprietary Software” means (a) the
  Tenet Enterprise Proprietary Software; (b) the Tenet Facility Software to the
  extent any such software is owned by Tenet; and (c) the Tenet Special
  Services Proprietary Software.

  
	
   

  	
   

  
	
  (198)

  	
  “Tenet Service Locations” means the service
  locations set forth in Article II of Exhibit 7  [Service Locations].

  
	
   

  	
   

  
	
  (199)

  	
  “Tenet Software” means the Tenet Proprietary
  Software, the Tenet Third Party Software and any related documentation in Tenet’s
  possession on or after the Effective Date.

  
	
   

  	
   

  
	
  (200)

  	
  “Tenet Special Services Machines” means those
  machines and equipment owned or leased by Tenet (a) that are operated by PSC
  under this Agreement as part of Special Services; or (b) which PSC requires
  access in order to perform Special Services under this Agreement; excluding,
  however, any such machines and equipment that also constitute Tenet
  Enterprise Machines or Tenet Facility Machines.

  
	
   

  	
   

  
	
  (201)

  	
  “Tenet Special Services Proprietary Software”
  means the software and related documentation (a) owned by Tenet prior to the
  Effective Date; or (b) of which Tenet acquires ownership after the Effective
  Date, or is developed by or on behalf of Tenet after the Effective Date, and,
  in either case, used to provide Special Services under this Agreement;
  excluding, however, any such software and related documentation that also
  constitutes Tenet Enterprise Software or Tenet Facility Software.

  
	
   

  	
   

  
	
  (202)

  	
  “Tenet Special Services Software” means the
  Tenet Special Services Proprietary Software and the Tenet Special Services
  Third Party Software, collectively.

  
	
   

  	
   

  
	
  (203)

  	
  “Tenet Special Services Systems” means the
  Tenet Special Services Software and the Tenet Special Services Machines,
  collectively.

  
	
   

  	
   

  
	
  (204)

  	
  “Tenet Special Services Third Party Software”
  means the software and related documentation licensed or leased from a third
  party by Tenet prior to or after the Effective Date and used by PSC to
  provide Special Services under this Agreement; excluding, however, any such
  software and related documentation that also constitutes Tenet Enterprise
  Software or Tenet Facility Software.

  
	
   

  	
   

  
	
  (205)

  	
  “Tenet Systems” means the Tenet Enterprise
  Systems, the Tenet Facility Systems and the Tenet Special Services Systems,
  collectively.

  

 

 20

	
  (206)

  	
  “Tenet Third Party Software” means (a) the
  Tenet Enterprise Third Party Software, (b) the Tenet Facility Software to the
  extent such software is licensed or leased from a third party by Tenet, and
  (c) the Tenet Special Services Third Party Software.

  
	
   

  	
   

  
	
  (207)

  	
  “Term” means the Initial Term and the Renewal
  Term(s), collectively.

  
	
   

  	
   

  
	
  (208)

  	
  “Termination Assistance Period” means a
  period of time designated by THC, commencing no more than one hundred eighty
  (180) days prior to the date of termination or expiration of this Agreement,
  and continuing for a period not to exceed [**] months after the effective
  date of such termination or expiration.

  
	
   

  	
   

  
	
  (209)

  	
  “Termination Assistance Services” means (a)
  the cooperation of PSC with Tenet in effecting the orderly transfer of the
  Services to a third party or the resumption of the Services by Tenet upon
  request by THC and (b) the performance by PSC of such services as may be
  reasonably requested by THC and in accordance with Exhibit 18, in connection
  with the transfer of the Services to a third party or the resumption of the
  Services by Tenet.

  
	
   

  	
   

  
	
  (210)

  	
  “Third Party Agreements” means the agreements
  for the information technology assets retained by Tenet which are set forth
  in Exhibit 9  [Third Party
  Agreements] as may be updated by PSC and THC from time to time
  during the Term.

  
	
   

  	
   

  
	
  (211)

  	
  “THC” means Tenet Healthcare Corporation, a
  Nevada corporation, with a principal place of business at 13737 Noel Road,
  Dallas, Texas 75240-2019.

  
	
   

  	
   

  
	
  (212)

  	
  “Third Party Agreement Invoice(s)” means each
  invoice or, when used in the plural, all invoices submitted to PSC by third
  parties in connection with the Third Party Agreements.

  
	
   

  	
   

  
	
  (213)

  	
  “Third Party Benchmarker” has the meaning set
  forth in Section 11.02.

  
	
   

  	
   

  
	
  (214)

  	
  “Third Party Services” has the meaning set
  forth in Section 8.08.

  
	
   

  	
   

  
	
  (215)

  	
  “Tier 1 Offshore Services” are those Core
  Enterprise Services identified in the IT Migration Plan to be included in the
  first wave of Core Enterprise Services that shall be implemented at the PSC
  Service Locations in India or Mexico, as identified in Exhibit 7 in
  accordance with the IT Migration Plan.

  

 21
 

 

	
  (216)

  	
  “Tier 2 Offshore Fee Adjustments” means the
  Agreed Tier 2 Offshore Fee Adjustments and the Optional Tier 2 Offshore Fee
  Adjustments, collectively.

  
	
   

  	
   

  
	
  (217)

  	
  “Tier 2 Offshore Services” means the Agreed
  Tier 2 Offshore Services and Optional Tier 2 Offshore Services, collectively.

  
	
   

  	
   

  
	
  (218)

  	
  “Tier 2 Tenet Software” means the Agreed Tier
  2 Tenet Software and the Optional Tier 2 Tenet Software, collectively.

  
	
   

  	
   

  
	
  (219)

  	
  “Transactions” has the meaning set forth in Section
  24.10(2)(A).

  
	
   

  	
   

  
	
  (220)

  	
  RESERVED

  
	
   

  	
   

  
	
  (221)

  	
  “Transitioned Employees” means any former
  employees or agents of Tenet hired by PSC in connection with this Agreement
  (including the Facility Transitioned Employees) or the 1995 Agreement or the
  2001 Agreement.

  
	
   

  	
   

  
	
  (222)

  	
  “Triggering Event” has the meaning set forth
  in Section 35.02.

  
	
   

  	
   

  
	
  (223)

  	
  “United States” means the fifty states,
  excluding territories and protectorates.

  

 

ARTICLE 2.                                                        TERM.

2.01         Initial
Term.  The initial term of this
Agreement shall commence on the Effective Date, and shall continue until 12:00
midnight (Eastern Standard Time) ten (10) years from the Effective Date, unless
terminated earlier pursuant to Article 28 (the “Initial Term”).

2.02         Renewals.
This Agreement shall renew for up to [**] additional [**]-year periods (each, a
“Renewal Term”;
collectively, the “Renewal Terms”)
upon 180 days’ notice from THC prior to the expiration of the Initial Term or a
Renewal Term that THC desires to renew this Agreement.  This Agreement shall renew pursuant to this Section
2.02 at the charges (as adjusted in accordance with Section 21.07)
[**].

ARTICLE 3.                                                        2001
CORE OBLIGATIONS AND CORE ENTERPRISE SERVICES.

3.01         2001
Core Obligations.  Commencing on the
Effective Date and continuing until the Commencement Date, PSC shall provide to
Tenet the 2001 Core Obligations.

 22
 

3.02         Core
Enterprise Services.  Commencing on
the Commencement Date and continuing throughout the remainder of the Term, PSC
shall provide to Tenet the Core Enterprise Services.

3.03         Current
Environment.  PSC shall provide the
Core Enterprise Services with respect to the Current Environment at each Tenet
Service Location.

3.04         Enterprise
Machines.  PSC shall provide the Core
Enterprise Services using the Enterprise Machines.  As part of the Core Obligations, PSC shall
use for the benefit of Tenet such PSC Enterprise Machines as may be necessary
to provide the Services (including such PSC Enterprise Machines as may be
necessary to use PSC proprietary and third party software tools).

3.05         Enterprise
Machine Maintenance.  As part of the
Core Enterprise Services, PSC shall provide maintenance and support services,
including installing, maintaining and supporting upgrades, for the Enterprise
Machines as described in Article I of Exhibit 2  [Core Obligations] and as otherwise may be
necessary for PSC to perform the Core Enterprise Services in accordance with
the Core Performance Standards.

3.06         Relief.  Notwithstanding the obligations set forth in Sections
3.04 and 3.05, PSC shall be relieved from its obligations under Section
3.04 and 3.05 with respect to Tenet Enterprise Machines leased by
Tenet to the extent Tenet does not have the necessary rights under the
applicable third-party lease agreement to allow PSC to perform such
obligations; provided PSC (1) gives THC written notice of Tenet’s failure to
secure such rights promptly after PSC becomes aware of such failure, except
when PSC becomes aware of such failure by notification from Tenet, and (2)
cooperates with THC in securing such necessary rights or instituting a
reasonable work-around; provided, further, such relief from liability shall not
apply with respect to (a) any such necessary Tenet Consents that PSC was
obligated to obtain pursuant to Article 17; or (b) any such necessary
rights with respect to Additional Equipment procured by PSC in Tenet’s name
pursuant to Section 6.02 to the extent PSC failed to obtain such rights
and failed to obtain THC’s approval as described in the Procurement Procedures.

3.07         Replacements.  As part of the Core Enterprise Services, PSC
shall provide additional Enterprise Machines and replace or upgrade the
Enterprise Machines, including such additional Enterprise Machines,
replacements and upgrades to such Enterprise Machines as may be necessary for
PSC to perform the Core Enterprise Services in accordance with the Core
Performance Standards, subject to Section 6.02 with respect to any
additional, replacement or upgraded Tenet Enterprise Machines that PSC procures
on Tenet’s behalf pursuant to this Section 3.07.  Notwithstanding the preceding sentence, [**]
shall pay the cost of any such additional Tenet Enterprise Machines and
upgrades to, or replacements of,

 23
 

Tenet Enterprise
Machines, plus the Procurement Management Fee for any such additional Tenet
Enterprise Machines, and any such upgrades or replacements of Tenet Enterprise
Machines[**].  In the event the
additional, replacement or upgrade of a Tenet Enterprise Machine requires an
upgrade or modification to the Enterprise Software, PSC shall not acquire,
install or use such Tenet Enterprise Machine without first notifying THC of the
impact of the proposed changes and obtaining THC’s consent.  Upon receipt of THC’s consent, PSC shall
provide the additional, replacement or upgraded Tenet Enterprise Machine as
specified in PSC’s notice and shall be responsible[**] for installing any
upgrades or modifications to the Core Enterprise Software or additional
software necessary as a result of PSC’s use of additional Tenet Enterprise
Machines, replacements or upgrades to the Tenet Enterprise Machines.  Upon THC’s request and as part of the Core
Enterprise Services, PSC shall be responsible for (1) configuring, installing,
testing, implementing and maintaining (including warranty services) all
additions, replacements and upgrades to the Enterprise Machines in accordance
with Article I of Exhibit 2  [Core
Obligations] and (2) notifying Tenet’s authorized movers in
accordance with Tenet’s moving policies, packing and de-installing in
accordance with Article I of Exhibit 2  [Core Obligations] and disposing of the Tenet Enterprise
Machines pursuant to Section 3.18. 
PSC shall bear the cost of any replacement or upgrade of PSC Enterprise
Machines or any additional PSC Enterprise Machines, including the cost of any
upgrades or modifications to the Core Enterprise Software, or additional
software necessary as a result of PSC’s use of additional, replacement or
upgraded PSC Enterprise Machines.  THC
and PSC agree that PSC’s ability to achieve certain Performance Standards may
be negatively affected if THC withholds or delays the consent contemplated by
this Section 3.07.  In such event,
THC and PSC will evaluate the affect of such withheld or delayed consent on PSC’s
ability to achieve the Performance Standards and will modify the affected
Performance Standards and related Performance Credits accordingly.

3.08         Enterprise
Machine Refresh. As part of the Core Enterprise Services, PSC shall, during
the Term, monitor the performance of the Enterprise Machines, except Tenet
Enterprise End-User Machines, currently being used to provide the
Services.  As part of the Core Enterprise
Services and for the Procurement Management Fee, PSC shall, upon THC’s request,
replace, at [**] expense, the Tenet Enterprise Machines (with hardware and
software purchased, leased or rented by PSC) by performing procurement,
configuration, installation, testing, implementation, software migration,
security administration and maintenance services (such services, collectively,
an “Enterprise Refresh”),
subject to Section 6.02.  The
Enterprise Refresh services described in this Section 3.08 [**].  As part of the Core Enterprise Services, PSC
shall provide the hardware, and the configuration, installation, testing,
implementation and maintenance services, in respect of the PSC Machines as may
be necessary to perform the Services in accordance with the Performance
Standards.

 24
 

3.09         Leased
Tenet Enterprise Machines.  With respect
to any additional, replacement or upgraded Tenet Enterprise Machines that PSC
procures on Tenet’s behalf pursuant to Section 3.07 or Section 3.08
(“Additional Equipment”),
the Parties shall follow the procurement process set forth in Section 6.02.

3.10         Enterprise
Applications Software. As part of the Core Enterprise Services, and more
fully described in Section 3.11 and Exhibit 2  [Core Obligations] and Exhibit 3  [Applications Software], PSC shall have
certain administrative, operational maintenance, and financial maintenance
responsibilities for the Tenet Enterprise Applications Software.  In addition, THC and PSC, respectively, have
financial obligations for certain Tenet Enterprise Applications Software as
specified in Exhibit 3  [Applications
Software].

3.11         Additional
Third Party Enterprise Applications Software.  With repect to any additional third party
applications that Tenet requests PSC procure on Tenet’s behalf (each an “Additional Software License”), the
Parties shall follow the procurement process set forth in Section 6.02
for procurement of such additional third party applications; provided, however,
the financial responsibility for the acquisition of such additional third party
applications software shall be determined by the Management Committee.  As part of the Core Enterprise Services, PSC
shall have administrative, operational and maintenance responsibility for any
additional third-party applications software relating to the Core Enterprise
Services requested by THC during the Term as agreed upon by the Parties.  Additionally, PSC shall use best commercial
efforts to have included in each such Additional Software License the  right for THC and PSC to attend all user
group meetings offered by the software vendor.

3.12         Tenet
Enterprise Applications Software Maintenance.  As part of the Core Enterprise Services and
subject to THC’s obligations pursuant to this Agreement, PSC shall provide
Tenet with applications software maintenance and applications software
production support services for the Tenet Enterprise Applications Software as
described in Article I of Exhibit 2  [Core Obligations], including: (1) preventive and corrective
maintenance to correct defects and failures in the Tenet Enterprise
Applications Software, (2) changes to support the day-to-day operations of
Tenet’s business as may be agreed to by THC and PSC, (3) installing, testing
and maintaining upgrades to the Tenet Enterprise Applications Software, (4)
following receipt of notice in accordance with Section 6.05, modifying
the Tenet Enterprise Applications Software to the extent necessary to comply
with Tenet’s regulatory requirements, including modifying the Tenet Enterprise
Application Software to the extent necessary to enable Tenet to comply with the
Federal Privacy Regulations, the Federal Transaction Regulations and the
Federal Security Regulations, and (5) changes to the Tenet Enterprise
Applications Software necessary due to changes to the Enterprise Systems
Software; (6)

 25
 

maintaining all
interfaces relating to the Tenet Enterprise Applications Software maintained on
the Effective Date by Tenet or PSC under the 2001 Agreement and additional
interfaces relating to the Tenet Enterprise Applications Software developed by
PSC under this Agreement, and (7) appropriately handling all requests and
inquiries with respect to the Tenet Enterprise Applications Software that are
referred by the PSC Help Desk provided by PSC (such applications software
maintenance and applications software production support services, including
(1) through (7), collectively, “Core
Enterprise Applications Maintenance”). PSC’s obligations,
however, to provide Core Enterprise Applications Maintenance support for the
SMS Software are conditioned on SMS maintaining and providing its software
support services to Tenet and then PSC’s obligations are limited to receiving,
logging, and tracking help desk calls pertaining to SMS Software and forwarding
such calls to SMS.  Notwithstanding the
foregoing, PSC shall be relieved from its obligations to provide Core Enterprise
Applications Maintenance with respect to Tenet Enterprise Third Party Software
to the extent Tenet does not have the necessary rights under the applicable
third-party license agreement to allow PSC to perform such Core Enterprise
Applications Maintenance.

3.13         Enterprise
Systems Software. Except as otherwise provided herein, as part of the Core
Enterprise Services, PSC shall have financial, administrative, operational and
maintenance responsibility for the Enterprise Systems Software as described in Section
3.14 and Exhibit 2, except for operating system software installed
on Tenet Enterprise End-User Machines; provided, however, THC shall have
financial responsibility for Enterprise Systems Software for the AS/400
Machines which are owned or leased by Tenet.

3.14         Enterprise
Systems Software Maintenance. As part of the Core Enterprise Services and
subject to THC’s obligations pursuant to this Agreement, PSC shall provide
Tenet with Enterprise Systems Software maintenance and Enterprise Systems
Software production support services as described in Article I of  Exhibit 2  [Core Obligations], including: (1) preventive and corrective
maintenance to correct defects and failures in the Enterprise Systems Software;
(2) installing, testing and maintaining upgrades to the Enterprise Systems
Software; (3) following receipt of notice in accordance with Section 6.05,
modifying the Enterprise Systems Software to the extent necessary to comply
with Tenet’s regulatory requirements; and, (4) changes, enhancements and replacements
of the Enterprise Systems Software or additional Enterprise Systems Software,
as PSC deems necessary, in order to perform the Core Enterprise Services in
accordance with the Core Performance Standards (including (1) through (4),
collectively “Core Enterprise Systems
Software Maintenance”). 
Notwithstanding the foregoing, PSC shall be relieved from its
obligations to perform Core Enterprise Systems Software Maintenance with
respect to Tenet Enterprise Third Party Software to the extent Tenet does not
have the necessary rights under the applicable third-party license

 26
 

agreement to allow PSC
to perform such Core Enterprise Systems Software Maintenance.

3.15         New
Releases and Versions of the Enterprise Software.

(1)           As
part of the Core Enterprise Services, PSC shall: (a) provide and maintain new
releases and versions of the Enterprise Software so that the Enterprise
Software used by Tenet or otherwise used to provide the Core Enterprise
Services is at the current release level or one release level below the current
release level unless otherwise agreed or requested by THC, (b) test new
releases and versions of such Software, (c) install such Software and ensure
that such Software is operational and (d) distribute, install and implement
code fixes for such Software (including any such new releases and versions)
according to the schedules agreed upon by THC and PSC.

(2)           PSC
shall: (a) not install any new release or version of the Enterprise Software
that is a first installation or beta release without THC’s consent and (b) use
best commercial efforts to install any new release or version of the Enterprise
Software within the time period mandated by any regulatory agency for the
installation of such new release or version.

(3)           Notwithstanding
the obligations set forth in Sections 3.15(1) and (2), PSC shall be
relieved from its obligations under Section 3.15(1) and (2) with
respect to Tenet Enterprise Third Party Software to the extent Tenet does not
have the necessary rights under the applicable third party license agreement to
allow PSC to perform such obligations; provided PSC (i) gives THC written
notice of Tenet’s failure to secure such rights promptly after PSC becomes
aware of such failure, except when PSC becomes aware of such failure by
notification from Tenet, and (ii) cooperates with THC in securing such
necessary rights or instituting a reasonable work-around; provided, further,
such relief from liability shall not apply with respect to (A) any such
necessary Tenet Consents that PSC was obligated to obtain pursuant to Article
17; or (B) any such necessary rights under an Additional Software License
procured by PSC in Tenet’s name pursuant to Section 6.02 to the extent
PSC failed to obtain such rights and failed to obtain THC’s approval as
described in the Procurement Procedures.

3.16         Voice
Communications.  As part of the Core
Enterprise Services, PSC shall provide the voice telecommunications as
described in Article I of Exhibit 2  [Core Obligations].

3.17         Data
Telecommunications.  As part of the
Core Enterprise Services, PSC shall (1) provide one (1) T-1 line as described
in Article I of Exhibit 2  [Core
Obligations] to the PTC (as defined in Exhibit 2) from each
Core Hospital, (2) provide one (1) MPLS T1 to the Internet from each Core
Hospital, (3) be responsible

 27
 

for all data
communications hardware, software and bandwidth for connections between PSC
Service Locations, and (4) the data telecommunications provided by PSC as
described in Article I of Exhibit 2.

3.18         Disposition
of Assets.  Upon THC’s request and as
part of the Core Enterprise Services, PSC shall administer and manage, on Tenet’s
behalf, as Tenet’s agent, the disposition, of the assets set forth in Exhibit
3  [Applications Software]
(each as may be updated by the Parties from time to time during the Term) in
connection with the replacement or refreshment of such assets during the
Term.  In connection with such
disposition and as part of the Core Enterprise Services, PSC shall, upon THC’s
request, as Tenet’s agent (1) use best commercial efforts on Tenet’s behalf to
identify and solicit, upon terms and prices most favorable to Tenet, purchasers
of such Tenet assets, including by providing fair market value listings, and
(2) return leased equipment or software to the lessor.  Prior to the sale of any such asset, PSC
shall provide THC with a written estimate of the amount PSC expects to receive
for such asset as well as the costs associated with the disposition of such
asset.  Such estimate shall be
non-binding and for informational purposes only; provided, however, that THC
must instruct PSC with respect to such asset disposition within five business
days of THC’s receipt of such estimate. 
PSC shall dispose of such asset within five business days of receipt of
THC’s approval.  PSC shall remit to THC the
amount received by PSC on Tenet’s behalf for such asset within five business
days of PSC’s receipt of such amount, less a fee equal to [**] percent of the
gross amount received by PSC.  PSC shall
notify THC immediately in the event that the amount actually received by PSC
for such asset is less than the amount stated in the applicable estimate
provided to THC in accordance with this Section 3.18.  If PSC incurs additional costs (other than
personnel-related costs) in connection with the disposition of an asset
pursuant to this Section 3.18, THC shall reimburse PSC for such
additional costs associated with the disposition of such assets.

3.19         Supplies.
As part of the Core Enterprise Services, PSC shall be responsible for data
processing related forms and supplies required for PSC Enterprise Systems
operations, including, but not limited to, pre-printed forms and stock labels,
magnetic tapes, and printer consumables, provided that if there is a material
change in the Core Enterprise Services that affects the volume of data
processing related forms and supplies required for such PSC Enterprise Systems
operations, the Parties shall negotiate an appropriate adjustment to the Core
Enterprise Annual Fee.

ARTICLE 4.                                                        CORE
PROJECTS.

4.01         Core
Project Management.  As part of the
Core Enterprise Services, PSC shall provide the project management,
installation, testing, training,

 28
 

documentation and
related services described in Exhibit 4  [Core
Project] in connection with the Core Project.

4.02         Core
Project Schedules.  Subject to Tenet’s
performance of its obligations identified in Exhibit 4  [Core Project] or in the Core Project
Schedule, as part of the Core Enterprise Services, PSC shall provide the
services and deliverables described in Exhibit 4 (“Core Project”) in accordance with any
applicable Core Project Schedule.

4.03         Core
Project Testing Environments.  As
part of the Core Enterprise Services, subject to THC approval and where testing
with data representative of the production environment is necessary, PSC may
use a copy of Tenet production data; provided, however, that such test data
shall not contain actual client names or addresses to the extent that the same
is prohibited by statutory or regulatory requirements.

4.04         Core
Project Acceptance Tests. As part of the Core Enterprise Services, THC and
PSC shall perform the Core Project Acceptance Test(s) established by the
Parties for the Core Project.

4.05         Core Project Completion. With
respect to the Core Project Acceptance Test(s) established by the Parties for
the Core Project, within 30 days of the date of notification by PSC of the
successful completion of such Core Project Acceptance Test(s) for the Core
Project, THC shall notify PSC whether the implementation of the Core Project is
complete in accordance with the Core Project Acceptance Test(s).  In the event THC notifies PSC that the
implementation is not complete, PSC shall have thirty (30) days to either (1)
complete the Core Project in accordance with the Core Project Acceptance
Test(s) and notify Tenet of the successful completion of such Core Project
Acceptance Test(s); or (2) dispute THC’s allegation that the Core Project was
not completed in accordance with the Core Project Acceptance Test(s) and submit
the issue for dispute resolution pursuant to Article 32.  In the event PSC notifies THC in accordance
with clause (1), THC shall then have seven (7) days to re-conduct the Core
Project Acceptance Test (s).  If THC fails to provide notice to PSC within
such 30-day or 7-day periods, the implementation of the Core Project shall be
deemed to be complete.

ARTICLE 5.                                                        CORE
FACILITY SERVICES.

5.01         Core
Facility Services.  Beginning on the
Commencement Date, and continuing throughout the Term, PSC shall provide to
Tenet the Core Facility Services in accordance with Article II of Exhibit
2  [Core Obligations].

 

 29

ARTICLE 6.                                                        ADDITIONAL
CORE OBLIGATIONS.

6.01         Changes to the Core Obligations.  Except as may be necessary on an emergency
basis to maintain the continuity of the Core Obligations, PSC shall not,
without THC’s consent, modify (1) the composition or nature of the Core
Obligations or (2) the manner in which the Core Obligations are provided or
delivered (except that THC’s consent shall not be required in order for PSC to
modify the manner in which administrative and other services that are
transparent to end-users of the Services are provided or delivered).

6.02         Procurement.

(1)           Procurement Process.  As part of the Core Obligations, upon THC’s
request or as required in Section 3.09 and Section 3.11, PSC
shall assist THC in procuring additional equipment and additional third party
software (including Additional Software Licenses and Additional Equipment), on
Tenet’s account, at THC’s expense, either in Tenet’s or in PSC’s name, as THC
shall determine, and on such terms and conditions as THC may approve.  Additionally, specific procedures for
procuring such additional equipment and third party software (including
Additional Software Licenses and Additional Equipment) shall be set forth in
the Management Procedures Manual (“Procurement Procedures”).

(2)           Procurement Management Fee.  As part of PSC’s obligations under Section
6.02(1) above, PSC shall identify, manage and negotiate at the lowest price
commercially available to PSC, all hardware, software and communication
purchases, leases and licenses on behalf of Tenet for a management fee  equal to [**] percent of the gross price for
such procured item (the “Procurement
Management Fee”), subject to THC’s written authorization to
finalize each purchase, lease and license on terms acceptable to THC.  Without limiting the foregoing, if, prior to
giving authorization to PSC to finalize a purchase, lease or license, Tenet
locates comparable, as determined by THC and PSC, hardware, software or
communications products or services at a lower cost than that offered by PSC
(exclusive of the Procurement Management Fee), PSC shall procure the hardware,
software and communication product or services at the lower cost and PSC shall
not be entitled to any Procurement Management Fee for the purchase, lease or
license of the comparable products or services. 
Unless otherwise agreed by THC, the Procurement Management Fee shall not
apply to any recurring maintenance or license fees associated with any
purchase, lease or license by PSC pursuant to this Section 6.02. At THC’s
request, PSC shall solicit and evaluate competitive bids with respect to any
such purchase, lease or license.

6.03         Improved Technology.  As part of the Core Obligations, PSC shall
provide to THC for Tenet’s evaluation and testing in connection with the
Services, at the same time as access is provided to other PSC customers, any
new,

 30
 

commercially
available PSC information processing technology developments, including new
software and hardware developments, that could reasonably be expected to have
an impact on Tenet’s business. If, after such evaluation and testing, THC
requests that PSC provide any Improved Technology to Tenet for Tenet’s use, PSC
shall provide such Improved Technology to Tenet at reasonable commercial rates
as may be agreed to by THC and PSC.

6.04         Licenses and Permits.  As part of the Core Obligations, PSC is
responsible for obtaining all licenses, authorizations and permits required by
applicable legislative enactments and regulatory authorizations, for PSC to
perform the Services and otherwise carry out its obligations under this
Agreement.  Additionally, PSC has
financial responsibility for, and shall pay, all fees and taxes associated with
obtaining such licenses, authorizations and permits.

6.05         Changes in Law and Regulations.  Each Party shall identify and notify the
other of changes in applicable legislative enactments and regulations that it
becomes aware of in the ordinary course of its business and shall work with the
other to identify the impact of such changes on how Tenet uses the Services.  As part of the Core Obligations, PSC shall
identify the impact of such changes on the Services.  If requested by THC, PSC shall promptly make
any resulting modifications to the Services reasonably necessary as a result of
such changes through the Change Control Procedures.  PSC shall be responsible for, and shall pay
for, the cost of any such changes relating solely to PSC’s business.  [**]

6.06         RESERVED.

6.07         Strategic Plan.  Upon THC’s request, and as part of the Core
Obligations, PSC shall assist THC with the preparation of a strategic systems
plan that will present opportunities for Tenet to utilize alternative
technologies, such as hardware and applications software that support
comprehensive processing correlating to Tenet’s strategic business direction.  Upon THC’s request, PSC shall assist in the
preparation of such strategic systems plan in cooperation with a third party
consultant designated by THC. 
Notwithstanding any such assistance from PSC, the adoption of such a
strategic systems plan, in whole or in part, shall be within THC’s sole
discretion.

6.08         Manufacturers’ Warranties.  As part of the Core Obligations, PSC shall
without limitation of any of Tenet’s other rights or remedies, pass through to
Tenet, whenever such pass through is permitted, the manufacturer’s or vendor’s
warranty on all hardware, Software, or any installation or maintenance services
provided in connection with such hardware or Software, and, in the event of any
warranty claim, cooperate fully with Tenet in asserting such claim against the
warrantor.

 31
 

6.09         Charge Back System.  Upon THC’s request, and as part of the Core
Obligations, PSC shall assist THC in developing, implementing, improving and
maintaining an internal charge back system.

6.10         Third Party Services. Subject to
Section 28.08 and Section 29.05, Tenet shall have the right to
contract with a third party to perform any of the Core Obligations.  In the event Tenet contracts with a third
party to perform any Core Obligations, PSC shall cooperate with Tenet and such
third party to the extent reasonably required by THC, including provision of
(1) written requirements, standards and procedures for Tenet systems operations
maintained by PSC so that the enhancements or developments of such third party
may be operated by PSC, (2) assistance and support services to such third party
at the applicable then-current Special Services Hourly Rate, and (3) if
permitted by third party vendors, access to the Software and the Machines as
may be reasonably required by such third party and approved by THC in
connection with such Core Obligations. 
THC shall require such third parties to comply with PSC’s reasonable
requirements regarding operations, data center standards and security and to
sign a non-disclosure agreement with PSC in a form reasonably acceptable to
PSC.  PSC will provide to such third
parties or to THC, upon request, copies of any such reasonable requirements
regarding operations, data center standards and security.  In the event THC exercises its rights under
this Section 6.10, PSC and THC will evaluate the impact of such exercise
on the Performance Standards and any related Performance Credits and PSC and
THC will modify such Performance Standards and any such related Performance
Credits accordingly.

ARTICLE 7.                                                        THIRD
PARTY CONTRACT ADMINISTRATION AND MANAGEMENT. 

7.01         PSC Responsibilities. Throughout
the Term, PSC shall be responsible for administering and maintaining the Third
Party Agreements.  PSC shall use best
commercial efforts as agreed upon by THC and PSC to reduce THC’s financial
responsibility with respect to the Third Party Agreements.  PSC shall provide THC with reasonable notice
of any renewal, termination or cancellation dates and fees in respect of the
Third Party Agreement.  PSC may, upon THC’s
consent, to the extent permitted by the Third Party Agreements, modify,
terminate or cancel any such Third Party Agreements.  Any modification, termination or cancellation
fees or charges imposed upon Tenet in connection with any such modification,
termination or cancellation without THC’s consent shall be paid by PSC.

7.02         Performance Under Agreements.  Each of THC and PSC shall promptly inform the
other Party of any breach of, or misuse or fraud in connection with, any Third
Party Agreements and shall cooperate with the other Party to prevent or stay
any such breach, misuse or fraud.  PSC
shall pay all amounts due

 32
 

for
any penalties or charges incurred by Tenet as a result of (1) the breach of, or
misuse or fraud in connection with, any Third Party Agreement by Tenet or its
employees, contractors (other than PSC), agents or representatives if PSC (a)
has actual knowledge, or reasonably should have had actual knowledge, of such
breach, fraud or misuse and (b) fails to notify THC of such breach, fraud or
misuse; or (2) the breach of, or misuse or fraud in connection with, any Third
Party Agreement by PSC, PSC Project Personnel or PSC Company Contractors;
provided, however with respect to clause (1), PSC shall only be liable for
amounts incurred after PSC has actual knowledge, or reasonably should have had
actual knowledge, of such breach, fraud or misuse.

7.03         Third Party Invoices. PSC shall
receive all Third Party Agreement Invoices. 
PSC shall review and correct any errors in and pay the Third Party
Agreement Invoices for services which accrue on or after the Effective Date as
well as those errors, if any, which accrued under the 2001 Agreement.  Any administration or maintenance fees of PSC
in connection with the Third Party Agreement Invoices [**].  [**] shall be responsible for any late fees
in respect of the Third Party Agreement Invoices for services which accrue on
or after the Effective Date, as well as those late fees, if any, which accrued
under the 2001 Agreement, [**].

7.04         Appointment as Agent. THC hereby
appoints PSC as Tenet’s sole, limited purpose agent for all administration and
maintenance matters pertaining to the Third Party Agreements.

ARTICLE 8.                                                        SPECIAL
SERVICES. 

8.01         Special Services.  THC may, from time to time after the
Effective Date and subject to Section 8.08, request that PSC perform
Special Services.  Following receipt of
such request, PSC shall, as soon as reasonably practicable, notify THC as to
whether PSC desires to perform such Special Services as follows:

(1)           Project Services Schedules.  With respect to any Special Services that (i)
require twelve (12) months or more to perform; or (ii) the total estimated
charges (including charges for the Special Services and any charges for
hardware, software, implementation, travel, ongoing expenses and any other
charges or expenses) will exceed five hundred thousand dollars ($500,000.00);
or (iii) will be charged on a fixed fee basis (e.g., Special Services
charged at a fixed price or at a monthly rate); or (iv) include any ongoing
Special Services Performance Standards; or (v) include any ongoing fees or
expenses, if PSC desires to perform such Special Services:

 33
 

(a)           PSC shall provide to THC, as soon as
reasonably practicable following receipt of THC’s request, a proposal for such
Special Services substantially in the form of a “Form Project Services Schedule”
approved by the Management Committee (a “PSS
Proposal”).

(b)           In the event THC elects to have PSC
perform the Special Services described in a PSS Proposal, THC and PSC shall
execute the PSS Proposal.  Once THC and
PSC have duly executed a PSS Proposal in accordance with this Section
8.01(1)(b), such PSS Proposal shall constitute a “PSS” or a “Project Services Schedule” and shall be
binding on the Parties and PSC shall provide to Tenet the Special Services set
forth in such PSS.  PSC shall not begin
performing any such Special Services until a PSS has been duly executed by THC
and PSC pursuant to this Section 8.01(2)(b).

(2)           Service Requests.  With respect to any Special Services that (i)
will be charged on a time and materials basis at an hourly rate; (ii) require
less than twelve (12) months to perform; (iii) the total estimated charges
(including charges for the Special Services and charges for any hardware,
software, implementation, travel and any other expenses or charges) will not
exceed five hundred thousand dollars ($500,000.00); and (iv) do not include any
ongoing Special Services Performance Standards or any ongoing fees or expenses,
if PSC desires to perform such Special Services:

(a)           PSC shall provide to THC, as soon as
reasonably practicable following receipt of THC’s request, a proposal for such
Special Services (i) via the SR Tracker system, the OPAS system, the eProject
system or another mutually agreed upon electronic system, or (ii) via email, or
(iii) in a hard-copy; each substantially in the form of a “Form Service Request”
approved by the Management Committee (a “Service
Request Proposal”).

(b)           Each Service Request Proposal shall
include (i) a description of the scope of such Special Services; (ii) an
estimated schedule for commencing and completing such Special Services (i.e.,
the term); (iii) whether PSC will utilize PSC Onshore Resources or PSC India
Resources, or PSC Other Offshore Resources located in offshore PSC Service
Locations that (A) are listed in Exhibit 7 without a notation in such
exhibit that approval by the Management Committee is required for PSC to
provide services at such locations, or (B) have been approved by the Management
Committee, to provide such Special Services; (iv) an estimate of the hours
necessary to perform the Special Services; (v) the applicable charges for such
Special Services (i.e., the applicable Special Services Hourly Rate); (vi)
applicable Tenet billing information (CER # or facility/department/sub-account
codes); and (vii) if applicable (A) a description of any hardware, software,
implementation and training PSC shall provide under the Service Request
Proposal and the estimated charges for such items, (B) any travel necessary for
PSC Project

 34
 

Personnel
to provide such Special Services and the estimated travel expenses for such
travel; and (C) any acceptance criteria relating to such Special Services.  PSC shall only provide Special Services under
a Service Request from PSC Service Locations listed in Exhibit 7 or that
were approved by the Management Committee.

(c)           In the event THC elects to have PSC
perform the Special Service described in a Service Request Proposal:

(i)            If the Service Request Proposal was
submitted utilizing one of the electronic systems identified in Section
8.01(2)(a)(i), THC shall approve the Service Request Proposal via such
system; or

(ii)           if the Service Request Proposal was
submitted via email, THC shall approve the Service Request Proposal via email;
or

(iii)          if the Service Request Proposal was
submitted via the document identified in Section 8.01(2)(a)(iii), THC
and PSC shall execute such document.

(d)           Once THC has approved, or THC and PSC
have executed, as the case may be, a Service Request Proposal in accordance
with Section 8.01(2)(c), such Service Request Proposal shall constitute
a “Service Request” and
shall be binding on the Parties.  PSC
shall not begin performing any such Special Services until THC has approved, or
THC and PSC have executed, as the case may be, a Service Request Proposal
pursuant to Section 8.01(2)(c).

(e)           In any event, a Tenet vice president
may determine that a Special Service of the type described in Section
8.01(2) may be agreed to pursuant to a Service Request, in which case the
Tenet vice president shall execute or approve, as the case may be, the
applicable Service Request.

(3)           If PSC becomes aware that the actual
resources (including software, hardware, human and run-time resources) expended
by PSC or PSC Company Contractors in performing the Special Services pursuant
to a PSS or Service Request exceed or are likely to exceed the estimated
resources set forth in such PSS or Service Request, PSC shall promptly notify
THC of the extent, or likely extent, that the actual resources exceed or are
expected to exceed the anticipated resources. 
PSC shall within [**] days of giving such notice perform a root-cause
analysis to identify the cause of the need for such excess resources and
provide a report detailing the circumstances resulting in the need for such
excess resources.  Neither THC nor any
THC Affiliate shall be responsible for such excess costs associated with such
PSS or Service Request unless THC approves such costs in advance.  If THC does not approve such costs, PSC shall
no longer be obligated to continue to provide the Special Services subject to
such PSS or Service Request.  In

 35
 

the
event of such excess resources, unless otherwise specified in the application
PSS or Service Request[**].  PSC shall be responsible for
any resources expended by PSC or PSC Company Contractors in performing the
Special Services that exceed the estimated resources set forth in the
applicable PSS or Service Request that are not approved by THC.

(4)           If THC does not approve a PSS
Proposal or Service Request Proposal as set forth in Section 8.01(2)(b)
or Section 8.01(3)(c), PSC shall not perform such Special Services and
Tenet shall have the right to contract with a third party for such services, as
set forth in Section 8.08.

8.02         Continuing Special Services
Schedules.  With respect to the
Special Services contracted for under the Continuing Special Services
Schedules, such Continuing Special Services Schedules shall continue under this
Agreement, subject to any amendments to such Continuing Special Services
Schedules set forth in Exhibit 19, which shall contain amendments to
certain agreed upon Continuing Special Services Schedules that are not
calculated on an hourly basis to account for the then-current and applicable
Special Services Hourly Rates.

8.03         Development Services. As Special
Services, PSC shall provide, upon THC’s request, resources for use in
connection with new projects or such other services designated by Tenet,
including consulting services and developing, modifying and enhancing such
existing and new applications as may be requested by THC (the “Development Services”).  Development Services do not include (1)
implementing the Core Project, (2) performing Core Enterprise Applications
Maintenance, (3) providing operational or administrative support or (4) providing
any other services otherwise included in the Core Obligations.  If Tenet requests such Development Services,
the Parties shall follow the PSS or Service Request procedures set forth in
this Article 8.

8.04         Development Baseline Annual Hours.  As Special Services, each Contract Year PSC
shall provide PSC Onshore Resources to perform Development Services consisting
of at least the number of person hours set forth below (the “Development Baseline Annual Hours”):

 

	
  

  

  Contract Year

  	
   

  	
  Development Baseline

  Annual Hours

  (Number of Person Hours)

  
	
  1

  	
   

  	
  [**]

  
	
  2

  	
   

  	
  [**]

  
	
  3

  	
   

  	
  [**]

  
	
  4

  	
   

  	
  [**]

  
	
  5

  	
   

  	
  [**]

  
	
  6

  	
   

  	
  [**]

  
	
  7

  	
   

  	
  [**]

  
	
  8

  	
   

  	
  [**]

  
	
  9

  	
   

  	
  [**]

  
	
  10

  	
   

  	
  [**]

  

 

 36
 

Subject to Section
8.01, PSC shall increase or decrease the amount of the resources providing
Development Services according to THC’s request for Development Services.  Development Services provided pursuant to
this Article 8 shall be charged on a time and materials basis at the
then-current applicable Special Services Hourly Rate or on a fixed fee basis as
specified in the applicable PSS or Service Request.  Each month, in accordance with Section
22.01, PSC shall issue a credit to THC in an amount equal to the
Development Baseline Monthly Hours for such month multiplied by the
then-current Onshore Special Services Hourly Rate.

8.05         Special Services Timeframe.  PSC shall perform the Special Services in
accordance with the schedule, if any, set forth in the PSS or Service Request,
as applicable.

8.06         Special Services Acceptance Tests.  As part of Special Services, THC and PSC
shall perform the mutually agreed upon acceptance test(s) for such Special
Services, if any, set forth in the PSS or Service Request, as applicable (“Special Services Acceptance Tests”).

8.07         Minimum Commitment for Special
Services.  During each of the first
[**] Contract Years, THC agrees to procure from PSC Special Services to be
performed by PSC in an amount equal to [**] dollars ($[**]) in excess of an
amount equal to the Development Baseline Annual Hours for such Contract Year
multiplied by the then-current Onshore Special Services Hourly Rate.

8.08         Third Party Services.  Notwithstanding any request made to PSC or
the submission of a PSS Proposal or a Service Request Proposal by PSC pursuant
to Section 8.01, Tenet shall have the right to contract with a third
party to perform any services which are in addition to, or outside the scope
of, the then-current Services or which require resources not covered by the
Fees or require additional start-up expenses (the “Third Party Services”).  If Tenet contracts with a third party to
perform any Third Party Services, PSC shall cooperate with Tenet and such third
party to the extent reasonably required by THC, including provision of (1)
written requirements, standards and procedures for the Systems maintained by
PSC under this Agreement so that enhancements or developments of such third
party may be operated by PSC, (2) assistance and support services to such third
party at the then-current applicable Special Services Hourly Rate, and (3)
access to the Software and the Machines as may be reasonably required by such
third party 

 37
 

and
approved by THC in connection with such Third Party Service.  THC shall require such third parties to
comply with PSC’s reasonable requirements regarding operations, data center
standards and security.  PSC shall
cooperate with such Third Party Service provider at THC’s request, provided the
Third Party Service provider complies with any written requirements, standards
and policies for system operations provided to Tenet by PSC.  THC agrees to consider recommendations from
PSC regarding the technical architecture or environment for any such Third
Party Service.  If a Third Party Service
provider fails to comply with PSC’s reasonable requirements regarding
operations, data center standards and security, PSC and THC will evaluate the
effect of such failure to cooperate on PSC’s ability to achieve the Performance
Standards and PSC and THC will modify the Performance Standards and related
Performance Credits accordingly.

ARTICLE 9.                                                        CUSTOMER
SATISFACTION.

9.01         Baseline Customer Satisfaction
Survey.  The ISD survey, dated
October  2006, which was conducted by PSC
under the 2001 Agreement, shall serve as the baseline for measurement of ISD
performance improvements described in Section 9.02.

9.02         Annual Customer Satisfaction Survey.
Upon request by THC, but not more often than once every 12 months during the
Term and as part of the Core Obligations, PSC shall conduct a customer
satisfaction survey of the senior managers of the ISD which shall focus on
satisfaction with the functional interface between Tenet and PSC (“Annual Customer Satisfaction Survey”).  The general scope, content, and methodology
for conducting an Annual Customer Satisfaction Survey shall be in accordance
with PSC’s then-current corporate standards for conducting customer
satisfaction surveys of its customers; provided, however, such standards shall
at least cover overall customer satisfaction and attributes relating to
responsiveness, competence (e.g., accuracy/quality), timeliness,
communication, and reliability. The timing of the Annual Customer Satisfaction
Surveys is subject to THC’s approval.  At
THC’s request, PSC shall provide THC and the Management Committee with a
summary (in form and substance satisfactory to THC) of the results of any
Annual Customer Satisfaction Survey conducted by PSC pursuant to this Section
9.02.  It is the goal of PSC to
achieve at least [**] percent customer satisfaction for such survey.  In the event that such customer satisfaction
level falls below [**] percent at any time during the Term, PSC shall use best
commercial efforts to increase the customer satisfaction level to at least [**]
percent within [**] months of the initial determination that such customer
satisfaction level fell below [**] percent. 
In the event that PSC fails to increase the customer satisfaction level
to [**] percent within such [**] month period, PSC shall, as soon as reasonably
practicable, perform an analysis to identify the cause of such failure and
provide THC with a report detailing the cause of, and containing
recommendations for

 38
 

correcting,
such failure.  PSC agrees that increasing
measured customer satisfaction shall be a key performance incentive for
compensation for key executives assigned to the Tenet account.

9.03         End-User Customer Satisfaction
Surveys.  PSC shall conduct periodic
end user customer satisfaction surveys as follows, which survey may be reviewed
and updated annually by the Management Committee:

(1)           With respect to incident tickets
created by the PSC Help Desk in which an end user email is listed in the email
field, the PSC Help Desk system randomly selects 1 out of every 3 such tickets
and automatically sends an email to the listed email address, which requests
the end user to complete an on-line satisfaction survey via a link contained in
the email (“End User Satisfaction Survey”).

(2)           The End User Satisfaction Survey
currently resides on the eTenet Tenet Enterprise Applications Software system
and consists of a questionnaire containing a standard set of questions relating
to the end user’s satisfaction with respect to the quality of the assistance
provided to the end user in response to the incident ticket.  The questionnaire as of the Effective Date is
set forth in Exhibit 20.  If the end
user elects to complete the End User Satisfaction Survey, the end user accesses
the questionnaire via the email link described in Section 9.03(1) and
completes, and submits, the questionnaire on-line.

(3)           PSC will provide a monthly report to
THC containing an analysis of the End User Satisfaction Surveys completed and
submitted during the prior month.

(4)           At THC’s request, the Management
Committee shall meet to discuss any modifications to the questionnaire or to
the format of the monthly report; provided, however, the questionnaire and the
format of the monthly report must be consistent for the entire Tenet account.

ARTICLE 10.                                                  PERFORMANCE
STANDARDS.

10.01       2001 Core Obligations. From the
Effective Date until the Commencement Date, PSC shall provide the 2001 Core
Obligations at least at the 2001 Core Performance Standards, subject to the
provisions of Exhibit 5 to the 2001 Agreement.

10.02       Core Performance Standards.  From the Commencement Date through the Term,
PSC shall provide the Core Obligations at least at the Core Performance
Standards described in Exhibit 5  [Core
Performance Standards and Core Performance Credits], subject to the
provisions of  such Exhibit 5.

 39

10.03       Special Services.

(1)           Special Services Performance
Standards. With respect to any Special Services with Special Services
Performance Standards set forth in the applicable PSS or the Service Request or
for which the Parties have otherwise agreed in writing to certain Special
Services Performance Standards, PSC shall provide such Special Services in
accordance with the applicable Special Services Performance Standards, subject
to the provisions set forth in the applicable PSS or Service Request.

(2)           Continuing Special Services
Performance Standards. With respect to any Special Services with Continuing
Special Services Performance Standards set forth in the applicable Continuing
Special Service Schedule or for which the Parties have otherwise agreed in writing
to certain Continuing Special Services Performance Standards, PSC shall provide
such Special Services in accordance with the applicable Continuing Special
Services Performance Standards, subject to the provisions set forth in the
applicable Continuing Special Services Schedule.

10.04       Adjustment of Performance Standards.
The Management Committee shall review during the last quarter of every Contract
Year and may adjust, as appropriate, and as agreed upon by THC and PSC, the
Performance Standards for the following Contract Year.  In addition, either THC or PSC may, at any
time upon notice to the other Party, initiate discussions to review and, upon
agreement by the Management Committee, adjust any Performance Standard which
such Party in good faith believes is inappropriate at that time.

10.05       Additional Performance Standards.

(1)           Within [**] of the Commencement Date,
PSC and THC shall recommend  additional
Core Performance Standards for certain of the Tenet Enterprise Applications
Software set forth in Exhibit 3  [Applications
Software] for review by the Management Committee.  Upon agreement of any such additional Core
Performance Standards by THC and PSC, the Parties shall execute an amendment to
Exhibit 5  [Core Performance Standards
and Core Performance Credits] to document such mutually agreed upon
additional Core Performance Standards. 
Commencing on the mutually agreed upon effective date for such
additional Core Performance Standards as set forth in such amendment, PSC shall
perform the Core Obligations related to such agreed upon priority Tenet
Enterprise Software Applications in accordance with the additional Core
Performance Standards included in such amendment to Exhibit 5.

(2)           Within [**] of the Commencement Date,
PSC and THC shall establish and document a process to implement Core
Performance Standards on 

 40
 

other
agreed upon Tenet Enterprise Applications Software (other than priority Tenet
Enterprise Applications Software referenced in Section 10.05(1)) and any
new Tenet Enterprise Applications Software for review by the Management
Committee.  Upon agreement of such
process by THC and PSC, such process shall be documented in an amendment to
this Article 10 or Exhibit 5  [Core
Performance Standards and Core Performance Credits].  Upon the execution of such amendment by PSC
and THC, PSC shall implement such process.

10.06       Reports. As part of the Core
Obligations, PSC shall provide monthly performance reports to THC in a form
agreed upon by THC and PSC.

10.07       Root-Cause Analysis.  Upon the earlier of the identification by PSC
or receipt of notice from THC that the Services have not been provided in
accordance with the Performance Standards, PSC shall within [**] days (1)
perform a root-cause analysis to identify the cause of such failure, (2)
correct such failure, (3) provide THC with a report detailing the cause of, and
procedure for correcting, such failure and (4) provide THC with reasonable
evidence that such failure will not reoccur.

10.08       Offshore Disruptions.  In the event that Contingency Plans are
invoked pursuant to Section 13.08, the applicable Performance Standards
shall be temporarily adjusted pursuant to Section 13.08.

ARTICLE 11.                                                  BENCHMARKING.

11.01       Benchmark Overview.  At THC’s request, THC and PSC shall agree
upon and document the Industry Benchmarking Process or the Offshore
Benchmarking Process, or both, within one hundred eighty (180) days of THC’s
request in order to ensure that (1) PSC provides Tenet with technology and
Performance Standards equal to or greater than [**] (“Industry Benchmark”); and (2) the
quality of the Services being performed by PSC India Resources, PSC Mexico
Resources and PSC Other Offshore 
Resources is equal to or greater than [**] (“Offshore Benchmark”).

11.02       Benchmarker. Subject to Section
11.03, no more than [**], one or both of the Benchmarks shall be conducted
by PSC representatives who, in each case, shall be acceptable to THC (the “PSC Benchmarker”).  Notwithstanding the foregoing, at THC’s
option, no more than [**], one or both of the Benchmarks  may be conducted by a third party selected in
accordance with this Section 11.02 and paid for by THC (the “Third Party Benchmarker”).  If THC elects to engage a Third Party
Benchmarker, THC shall provide PSC with notice of its intention to retain a
Third Party Benchmarker.  Within five
business days of PSC’s receipt of such notice, PSC shall provide THC with a
list of three third party benchmarkers acceptable to PSC (each, a “Qualified Benchmarker”).  THC may engage any 

 41
 

Qualified
Benchmarker to act as the Third Party Benchmarker.  If PSC fails to provide THC with a list of
three Qualified Benchmarkers within five business days of PSC’s receipt of
notice, THC may, at its sole discretion, engage any third party benchmarker to
act as the Third Party Benchmarker.  Any
Third Party Benchmarker must execute a non-disclosure agreement in a form
acceptable to PSC.

11.03       Benchmark. Subject to Section
11.02, at THC’s request, the Benchmarker shall conduct one or both of the
Benchmarking Processes [**] during the Term. 
Within thirty (30) days of THC’s request, THC and PSC shall agree upon
the period during which the one or both of the Benchmarking Processes shall be
conducted [**].

11.04       Benchmark Information. THC and PSC
shall jointly determine the Benchmark Information.  THC and PSC shall (1) review the Benchmark
Information and (2) schedule a meeting to address any issues either Party may
have with the Benchmark Information.  PSC
shall provide the Benchmark Information benchmarked by the PSC Benchmarker
(including, with respect to the Industry Benchmark, information relating to
other customer sites, if available) at no additional cost to THC.

11.05       Benchmarking Results. Within sixty
(60) days after the completion of the Benchmarking Processes conducted in such
Contract Year, the Benchmarker(s) shall deliver the Benchmark Results in a
written report, including identification of the figures and supporting
documentation, to the Management Committee.

11.06       Benchmark Results Review Period and
Adjustments. THC and PSC shall review the Benchmark Results during the
Benchmark Review Period.

(1)           Industry Benchmark Results.  In the event the Management Committee agrees
with the Industry Benchmark Results, [**].

(2)           Offshore Benchmark Results. In
the event the Management Committee agrees with the Offshore Benchmark Results,
[**].

(3)           In the event either Party disputes
the Benchmark Results within the Benchmark Review Period, the Benchmark Results
shall be subject to the dispute resolution procedures set forth in Article
32.

ARTICLE 12.                                                  SERVICE
LOCATIONS.

12.01       Service Locations. The Services
shall be provided from the PSC Service Locations and the Tenet Service
Locations set forth in Exhibit 7  [Service

 42
 

Locations].
PSC shall not provide services to a third party from a Tenet Service Location
without THC’s consent.

12.02       Physical Security Procedures.  As part of the Core Obligations, PSC shall
maintain and enforce at the PSC Service Locations safety and physical security
procedures that are at least (1) equal to industry standards for such Service
Locations and (2) as rigorous as those procedures in effect at the PSC Service
Locations as of the Effective Date.  As
part of the Core Obligations, PSC shall comply with the safety and physical
security procedures that are in effect at the Tenet Service Locations as may be
reasonably required by THC.

12.03       Security Relating to Competitors.
If (1) PSC provides the Services to Tenet from a PSC Service Location that is
shared with a third party or third parties and (2) any part of the business of
PSC or any such third party is now or in the future competitive with Tenet’s
business, then PSC, at THC’s request, shall develop a process, subject to
approval of THC, to restrict access in any such shared environment to THC’s
Confidential Information so that the PSC Personnel and PSC Company Contractors
engaged in such competitive business shall have no access to THC’s Confidential
Information. In the event of the occurrence of the situation described in this Section
12.03, PSC will document such process in the Management Procedures Manual.

ARTICLE 13.                                                  GLOBALIZATION.

13.01       IT Migration and Risk Mitigation Plan.  PSC will perform the migration activities
described in this Article 13 in accordance with the IT Migration and
Risk Mitigation Plan set forth in Exhibit 15  [IT Migration and Risk Mitigation Plan] (the “IT Migration Plan”).

13.02       Implementation of Tier 1 Offshore
Services.  PSC shall implement the
Tier 1 Offshore Services in accordance with the IT Migration Plan.  The IT Migration Plan identifies the PSC Service
Locations where such services shall be implemented and describes the
obligations and tasks of PSC and Tenet with respect to such migration.  Except as set forth in Section 13.09,
the implementation activities of the Tier 1 Offshore Services shall commence on
the Effective Date and such implementation is estimated to be completed by
December 31, 2007.

13.03       Implementation of Tier 2 Offshore
Services.

(1)           Agreed Tier 2 Offshore Services.  PSC shall implement the Agreed Tier 2
Offshore Services in accordance with the IT Migration Plan.  The IT Migration Plan identifies the PSC
Service Locations where such services shall be implemented and describes the
obligations and tasks of PSC and Tenet with respect 

 43
 

to
such migration.  Except as set forth in Section
13.09, the implementation activities of the Agreed Tier 2 Offshore Services
shall commence on the Effective Date and such implementation is estimated to be
completed within two (2) years.

(2)           Optional Tier 2 Offshore Services.  THC is under no obligation to approve the
implementation of the Optional Tier 2 Offshore Services to India.  THC shall have the option to elect whether
PSC migrates the performance of the Optional Tier 2 Offshore Services to India.  If THC elects to have PSC migrate any of the
Optional Tier 2 Offshore Services to India, THC shall provide PSC with written
notice.  Within ninety (90) days after
receipt of THC’s written notice, PSC shall commence the implementation of the
Optional Tier 2 Offshore Services for the Optional Tier 2 Tenet Software
identified in THC’s notice in accordance with the IT Migration Plan; provided,
however, prior to commencement of the migration activities associated with the
Optional Tier 2 Offshore Services for each Optional Tier 2 Tenet Software
application identified in THC’s notice, the IT Migration Plan shall be amended
by the Parties to identify the time frame and any other migration
specifications for the completion of the migration for each such
application.  Upon the completion of the
migration of the Optional Tier 2 Offshore Services for each Option Tier 2 Tenet
Software application identified in THC’s notice, the Core Enterprise Annual Fee
shall be decreased in an amount equal to the Optional Tier 2 Offshore Fee
Adjustment for such application.  There
shall be no adjustment to the Core Enterprise Annual Fee if THC does not
provide approval for the migration of the performance of any of the Optional
Tier 2 Offshore Services from the United States.

13.04       Migration of Special Services.  THC shall have the option to elect whether
PSC performs any Special Services utilizing PSC Onshore Resources, PSC India
Resources, PSC Mexico Resources or PSC Other Offshore Resources.  Prior to the performance of any Special
Services by PSC India Resources, PSC Mexico Resources or PSC Other Offshore
Resources (“Offshore Special Services”),
the Parties shall enter into a PSS or Service Request to identify (1) the
applicable Special Services, (2) whether such Special Services will be
performed by PSC India Resources or PSC Other Offshore Resources located in
offshore PSC Service Locations that (a) are listed in Exhibit 7 without
a notation in such exhibit that approval by the Management Committee is
required for PSC to provide services at such locations, or (b) have been
approved by the Management Committee, and (3) the costs and fees associated
therewith.  If the Parties agree that a
migration and risk management plan for such Special Services is necessary, such
migration and risk management plan shall be agreed upon and included in such
PSS or Service Request or otherwise documented in writing.  Notwithstanding the foregoing, with respect
to any Special Services or Additional Core Obligations to be provided offshore
that are substantially similar to Tier 1 Offshore Services or Tier 2 Offshore
Services, the applicable Contingency Plan(s) set forth in Exhibit 1
shall be deemed the Contingency Plan(s) for such services.

 44
 

13.05       Relocation of Services from Countries
Outside the United States Due to PSC Material Breach.

(1)           If PSC commits a material breach of
its obligations under this Agreement with respect to its performance of any
Services previously implemented in countries outside the United States (e.g.,
Core Obligations implemented in India or Mexico, as applicable, pursuant to Section
13.02 or 13.03), and PSC does not either:

(a)           cure the breach within forty-five
(45) days of its receipt of the Notice of Breach from THC; or

(b)           if such breach cannot reasonably be
cured within such forty-five day period, provide to THC within forty-five (45)
days of its receipt of THC’s Notice of Breach, a commercially reasonable plan
to cure such breach that is acceptable to THC (which acceptance THC will not
withhold if such plan is commercially reasonable) (“Offshore Remediation Plan”), which plan
may not include increased or additional fees or an unreasonably long cure
period (i.e., the Offshore Remediation Plan will be deemed not commercially
reasonable if it includes increased or additional fees or an unreasonably long
cure period), but may include relocating the Services that are the subject of
the breach to one or more PSC service centers in the United States or to one or
more PSC service centers in other countries outside the United States (where
PSC has the necessary facilities and staff to provide such Services), or a
combination of both, then:

No later than one
hundred five (105) days of PSC’s receipt of THC’s Notice of Breach (unless the
Parties mutually agree to an extension), THC may provide further written notice
to PSC to relocate the performance of the Services that are the subject of the
breach back to the United States or to another country outside the United
States (where PSC has the necessary facilities and staff to provide such
Services) (“Notice of Offshore Relocation”).  Within [**] of PSC’s receipt of such Notice
of Offshore Relocation and [**] in the Core Enterprise Annual Fee with respect
to a material breach of Core Obligation services previously implemented in
countries outside the United States, or [**] in the Special Services Fees with
respect to a material breach of Offshore Special Services previously
implemented in countries outside the United States, whichever is applicable,
PSC shall relocate such Services in accordance with the Notice of Offshore
Relocation.

(2)           If THC accepts the Offshore
Remediation Plan, THC shall provide PSC with written notice of such acceptance
within sixty (60) days of THC’s receipt of the Offshore Remediation Plan.  Upon PSC’s receipt of THC’s notice of
acceptance, PSC shall commence relocating the Services that are the subject of
the breach in accordance with the Offshore Remediation Plan; provided, however,
if PSC receives such THC notice of acceptance after PSC has cured the breach
(i.e., 

 45
 

between
PSC’s submission of the Offshore Remediation Plan and PSC’s receipt of THC’s
notice of acceptance, PSC cured the breach), PSC will not be obligated to
relocate such Services in accordance with the Offshore Remediation Plan,
however, PSC shall notify THC of such cure if THC is not already aware of such
cure.

(3)           If THC rejects the Offshore
Remediation Plan because THC determined such plan is not commercially
reasonable and PSC disputes THC’s determination, such dispute shall be resolved
in accordance with Article 32.  In
such event, THC may not provide PSC with a Notice of Offshore Relocation and
PSC shall not be obligated to relocate the performance of the Services that are
the subject of the breach unless and until it is determined through the dispute
resolution process set forth in Article 32 that the Offshore Remediation
Plan was commercially unreasonable.

(4)           Except as may otherwise be determined
pursuant to the dispute resolution process set forth in Article 32 as
described in Section 13.05(3), [**] will be responsible for all one-time
transition costs and increased Sales Tax, if any, associated with the
relocation of such Services pursuant to this Section 13.05.

(5)           Except as may otherwise be determined
pursuant to the dispute resolution process set forth in Article 32 as
described in Section 13.05(3), PSC’s relocation of such Services
pursuant to this Section 13.05 shall be [**] in the Core Enterprise
Annual Fee with respect to a material breach of offshore Core Obligation
services, or [**] in the Special Services Fees with respect to a material breach
of Offshore Special Services; provided, however:

(a)           with respect to any Core Obligation
services that are the subject of the breach, if the operational costs incurred
by PSC in performing such Core Obligation services due to the relocation
pursuant to this Section 13.05 are [**], the Core Enterprise Annual Fee
shall be [**]; and

(b)           with respect to any Offshore Special
Services that are the subject of the breach, (i) if such Offshore Special
Services were being provided on a time and materials basis at the applicable
Special Services Hourly Rate (or at a monthly rate calculated utilizing the
applicable Special Services Hourly Rate), and the Special Services Hourly Rate
applicable to the country to which such Offshore Special Services are being
relocated pursuant to this Section 13.05 is [**] than the Special
Services Hourly Rate for the country from which such Offshore Special Services
are being relocated, the Special Services Hourly Rate applicable to the [**]
shall apply on and after the date PSC begins performing such Offshore Special
Services in such country; or (ii) if such Offshore Special Services were being
provided on a fixed price basis, the Special Services Fees shall [**].

 46
 

(6)           Upon the occurrence (but not before
the occurrence) of an event described in Section 13.05(6)(a) or (b),
whichever is applicable, (1) if Core Obligation services are the subject of a
material breach, THC may elect to terminate such Core Obligation services, or
terminate the Agreement in accordance with Section 28.03; or (2) if
Offshore Special Services are the subject of the breach, THC may terminate the
PSS or the Service Request that is the subject of the material breach, as
applicable, in each case, by providing PSC with further written notice.  Termination of a PSS or Service Request in
accordance with this Section 13.05(6) shall be in lieu of THC’s right to
terminate the Agreement set forth in Section 28.03, but is in addition
to THC’s other termination rights set forth in the Agreement.

(a)           If THC approves the Offshore
Remediation Plan and PSC (i) fails to relocate the performance of such Services
in accordance with the Offshore Remediation Plan, or (ii) relocates the
performance of such Services in accordance with the Offshore Remediation Plan,
but still fails to cure the material breach, in either case within the time
frame set forth in the Offshore Remediation Plan following PSC’s receipt of THC’s
notice of acceptance pursuant to Section 13.05(2).

(b)           If THC provides PSC with a Notice of
Offshore Relocation and PSC fails to (i) relocate the performance of such
Services to the United States, or to one of the other countries, if any,
specified in THC’s Notice of Offshore Relocation, or (ii) relocates the
performance of such Services to the United States, or to one of the other
countries, if any, specified in THC’s Notice of Offshore Relocation, but still
fails to cure the material breach, in either case, within thirty (30) days of
PSC’s receipt of such Notice of Offshore Relocation.

13.06       Withdrawal of Approval of Migration/Relocation
of Services Not Related to PSC Material Breach.  In addition to THC’s rights under Section
13.05 due to a material breach by PSC, THC may, at its option, (i) withdraw
its approval to implement Tier 1 Offshore Services or Tier 2 Offshore Services
offshore pursuant to Section 13.02 or Section 13.03 prior to the
implementation of such services (or during the implementation such services);
(ii) elect the relocation of any or all Core Obligation services previously
implemented in countries outside the United States (e.g., Core
Obligations implemented in India or Mexico, as applicable, pursuant to Section
13.02 or 13.03); (iii) withdraw its approval of the performance of
Offshore Special Services by PSC India Resources, PSC Mexico Resources or PSC
Other Offshore Resources PSC pursuant to Section 13.04 prior to the
implementation of such services (or during the implementation such services);
or (iv) elect the relocation of any or all Offshore Special Services
then-currently being performed by PSC India Resources, PSC Mexico Resources or
PSC Other Offshore Resources as follows: 

(1)           Withdrawal of Approval for Tier 1
Offshore Services.  With respect to
Tier 1 Offshore Services that have not previously been implemented in 

 47
 

India
or Mexico pursuant to Section 13.02, if THC wishes to withdraw its
approval for PSC to implement any or all of such Tier 1 Offshore Services, THC
shall request from PSC and PSC shall provide to THC within ten (10) days of PSC’s
receipt of request from THC, a quote describing the estimated increased actual,
reasonable costs to PSC to perform such Tier 1 Offshore Services in the United
States as compared to the costs PSC would have incurred in performing such
services in India or Mexico, as applicable, plus a reasonable mark-up.  If THC approves such quote in writing, or the
Parties otherwise agree in writing upon an increase in the Core Enterprise
Annual Fee, PSC shall not migrate to India or Mexico, as applicable, any of the
Tier 1 Offshore Services identified in THC’s notice.  In addition, effective as of the Commencement
Date, the Core Enterprise Annual Fee shall be increased (retroactively if THC’s
notice is received after the Commencement Date) in an amount equal to the
approved quoted amount or the Parties agreed upon increase, as the case may
be.  In addition, THC shall reimburse PSC
for reasonable expenses, if any, incurred by PSC to prepare for the
implementation that is the subject of THC’s withdrawal.

(2)           Withdrawal of Approval for Agreed
Tier 2 Offshore Services.  With respect
to each Agreed Tier 2 Tenet Software application for which Agreed Tier 2
Offshore Services have not previously been implemented in India pursuant to Section
13.03(1), THC may withdraw its approval to implement the Agreed Tier 2
Offshore Services in India for such Agreed Tier 2 Tenet Software application by
providing PSC with written notice of withdrawal.   If THC exercises such election, upon PSC’s
receipt of THC’s notice, PSC shall not migrate to India any of the Agreed Tier
2 Offshore Services for the Agreed Tier 2 Tenet Software application identified
in THC’s notice of withdrawal.  In
addition, (a) effective as of the Commencement Date, the Core Enterprise Annual
Fee shall be increased (retroactively if THC’s notice is received after the
Commencement Date) in an amount equal to the sum of the Tier 2 Offshore Fee
Adjustments for the Tier 2 Tenet Software applications identified in THC’s
notice of withdrawal; and (b) THC shall reimburse PSC for reasonable expenses,
if any, incurred by PSC to prepare for the implementation that is the subject
of THC’s withdrawal.  If such withdrawal
occurs during the implementation of such Agreed Tier 2 Offshore Services and
Tenet desires to relocate any Agreed Tier 2 Offshore Services previously
implemented offshore, Section 13.06(6) shall apply to a relocation back
to the United States and Section 13.06(7) shall apply to a relocation to
other countries outside the United States, unless such previously relocated
Agreed Tier 2 Offshore Services are the subject of a material breach by PSC, in
which case Section 13.05 shall apply.

(3)           Optional Tier 2 Offshore Services.  With respect to each Optional Tier 2 Tenet
Software application for which THC has provided its approval to implement the
Optional Tier 2 Offshore Services in India pursuant to Section 13.03(2),
prior to the implementation of any of the Optional Tier 2 Offshore Services 

 48
 

for
such Optional Tier 2 Tenet Software application pursuant to Section 13.03(2),
THC may withdraw its approval to implement the Optional Tier 2 Offshore
Services in India for such Optional Tier 2 Tenet Software application by
providing PSC with written notice of withdrawal.  If THC exercises such election, upon PSC’s
receipt of THC’s notice, PSC shall not migrate to India any of the Optional
Tier 2 Offshore Services for such Optional Tier 2 Tenet Software application
identified in THC’s notice.  There shall
be no adjustment to the Core Enterprise Annual Fee in connection with such THC
withdrawal of approval; provided, however, THC shall reimburse PSC for
reasonable expenses, if any, incurred by PSC, during the period from the date
of its receipt of THC’s notice of approval pursuant to Section 13.03(2)
until the date of its receipt of THC’s notice of withdrawal pursuant to this
section, to prepare for the implementation that is the subject of THC’s
withdrawal.  If such withdrawal occurs
during the implementation of such Optional Tier 2 Offshore Services and Tenet
desires to relocate any Optional Tier 2 Offshore Services previously
implemented offshore, Section 13.06(6) shall apply to a relocation back
to the United States and Section 13.06(7) shall apply to a relocation to
other countries outside the United States, unless such previously relocated
Optional Tier 2 Offshore Services are the subject of a material breach by PSC,
in which case Section 13.05 shall apply.

(4)           Withdrawal of Approval of Offshore
Special Services.  Prior to the
commencement of the performance of such Offshore Special Services by PSC India
Resources, PSC Mexico Resources or PSC Other Offshore Resources pursuant to the
applicable PSS or the applicable Service Request, THC may withdraw its approval
of the performance of such Offshore Special Services by PSC India Resources,
PSC Mexico Resources or PSC Other Offshore Resources by providing PSC with
written notice of withdrawal.  If THC
exercises such election, upon PSC’s receipt of THC’s notice, PSC shall not
perform such Offshore Special Services utilizing PSC India Resources, PSC
Mexico Resources or PSC Other Offshore Resources.  If such Offshore Special Services were going
to be performed offshore on a time and materials basis at the applicable
Special Services Hourly Rate (or at a monthly rate calculated utilizing the
applicable Special Services Hourly Rate), PSC will perform such Offshore
Special Services utilizing PSC Onshore Resources, and the Onshore Special
Services Hourly Rate shall apply on and after the date PSC begins performing
such Special Services utilizing PSC Onshore Resources.  If such Offshore Special Services were going
to be provided on a fixed price basis, within ten (10) days of PSC’s receipt of
THC’s request, PSC shall provide THC a fixed price quote to perform such
services utilizing PSC Onshore Resources. 
If the Parties agree upon a fixed price for PSC to perform such services
utilizing PSC Onshore Resources, PSC shall perform such services utilizing PSC
Onshore Resources and shall charge for such services at the agreed upon fixed
price.  If the Parties do not agree upon
a fixed price for PSC to perform such services utilizing PSC Onshore Resources,
PSC shall not be obligated to perform such services utilizing PSC 

 49
 

Onshore
Resources and THC may contract with a third party to perform such services in
accordance with Section 8.08.  In
addition, if PSC performs such services utilizing PSC Onshore Resources as
described in this section, THC shall reimburse PSC for reasonable expenses, if
any, incurred by PSC, during the period from the effective date of the
applicable PSS or Service Request pursuant to Section 13.04 until the
date of its receipt of THC’s notice of withdrawal pursuant to this section, to
prepare for the implementation that is the subject of THC’s withdrawal.

(5)           Withdrawal During Implementation.  If a THC withdrawal referenced in Section
13.06(1), Section 13.06(2), Section 13.06(3) or Section
13.06(4) occurs during the implementation of such Services offshore and
Tenet desires to relocate to the United States or to another country outside
the United States any related Services that have been previously implemented
offshore (i.e., the implementation offshore of a portion of the Core Obligation
services that are the subject of the implementation has been completed at the
time of the THC withdrawal), Section 13.06(6) shall apply if Tenet
desires to relocate such services to the United States and Section 13.06(7)
shall apply if Tenet desires to relocate such services to other countries
outside the United States, unless such services are the subject of a material
breach by PSC, in which case Section 13.05 shall apply.

(6)           Relocation to the United States.  With respect to any Services previously
implemented in countries outside the United States (e.g., Core
Obligation services implemented in India or Mexico, as applicable, pursuant to Section
13.02 or 13.03), THC may elect the relocation of any or all of such
Services to the United States by providing PSC with prior written notice at
least ninety (90) days before THC desires PSC to commence such relocation.  Prior to such notice of relocation, THC shall
request from PSC and PSC shall provide to THC within ten (10) days of PSC’s
receipt of request from THC, a quote describing the estimated increased actual,
reasonable costs to PSC in performing such Tier 1 Offshore Services, Tier 2
Offshore Services (if such election is made after the second anniversary of the
Effective Date) or Special Services (if such Offshore Special Services were
being provided on a fixed price basis) in the United States as compared to the
costs PSC would have incurred in performing such services offshore plus a
reasonable mark-up.  Upon PSC’s receipt
of such THC notice, the Parties will meet to negotiate and agree upon a time
frame for the completion of such relocation. 
THC shall be responsible for all reasonable one-time transition costs
and increased Sales Taxes, if any, associated with such relocation of such Core
Obligations.  In addition::

(i)            Tier 1 Offshore Services.  If THC approves the quoted amount or the
Parties otherwise agree upon an increase in the Core Enterprise Annual Fee for
PSC to perform such Tier 1 Offshore Services in the United States and THC
elects the relocation of all or a portion of such Tier 1 Offshore Services to
the United States, PSC will relocate such Tier 1 Offshore Services to the
United

 50
 

States
and the Core Enterprise Annual Fee shall be increased in an amount equal to the
approved quoted amount or the agreed upon increase, as the case may be.  If THC rejects the quoted amount and the
Parties do not otherwise agree upon an increase in the Core Enterprise Annual
Fee, (a) the Parties shall use the dispute resolution process set forth in Article
32 to resolve the dispute(s) regarding the increased costs to PSC in
performing such Tier 1 Offshore Services in the United States as compared to
the costs PSC would have incurred in performing such services offshore or  the mark-up on such costs, or both, and (b)
PSC shall not relocate such Tier 1 Offshore Services to the United States until
such dispute is resolved pursuant to Article 32.

(ii)           Tier 2 Offshore Services.

(A)          If THC’s notice is received by PSC on
or before the second anniversary of the Effective Date, and THC elects the
relocation of such Tier 2 Offshore Services to the United States, the Core
Enterprise Annual Fee shall be increased in an amount equal to the sum of the
Tier 2 Offshore Fee Adjustments for the Tier 2 Tenet Software applications
migrated back to the United States pursuant to THC’s notice; or

(B)           If (1) THC’s notice is received by
PSC after the second anniversary of the Effective Date; (2) THC approves the
quoted amount or the Parties otherwise agree upon an increase in the Core
Enterprise Annual Fee for PSC to perform such Tier 2 Offshore Services in the
United States, and (3) THC elects the relocation of such Tier 2 Offshore
Services to the United States, PSC will relocate such Tier 2 Offshore Services
to the United States, and the Core Enterprise Annual Fee shall be increased in
an amount equal to the approved quoted amount or the agreed upon increase, as
the case may be.  If THC rejects the
quoted amount and the Parties do not otherwise agree upon an increase in the
Core Enterprise Annual Fee, (a) the Parties shall use the dispute resolution
process set forth in Article 32 to resolve the dispute regarding the the
increased costs to PSC in performing such Tier 2 Offshore Services in the
United States as compared to the costs PSC would have incurred in performing
such services offshore or the mark-up on such costs, or both, and (b) PSC shall
not relocate such Tier 2 Offshore Services to the United States until such
dispute is resolved pursuant to Article 32.

(iii)          Offshore Special Services.

(A)          If such Offshore Special Services were
being performed offshore on a time and materials basis at the applicable
Special Services Hourly Rate (or at a monthly rate calculated utilizing the
applicable Special Services Hourly Rate) and THC elects the relocation of such
Offshore Special Services to the United States, PSC shall perform such services
utilizing PSC Onshore Resources and the Onshore Special Services Hourly Rate
shall apply on 

 51
 

and
after the date PSC begins performing such Special Services utilizing PSC
Onshore Resources; or

(B)           If (1) such Offshore Special Services
were being provided on a fixed price basis, (2) THC approves the quoted amount
or the Parties otherwise agree upon an increase in the Special Services Fees
for PSC to perform such Offshore Special Services utilizing PSC Onshore
Resources, and (3) THC elects the relocation of such Offshore Special Services
to the United States, PSC will perform such services utilizing PSC Onshore
Resources, and the Special Services Fees shall be increased in an amount equal
to the approved quoted amount or the agreed upon increase, as the case may
be.  If THC rejects the quoted amount and
the Parties do not otherwise agree upon an increase in the Special Services
Fees, PSC shall not be obligated to perform such services utilizing PSC Onshore
Resources and THC may terminate the applicable PSS by providing PSC with
written notice and contract with a third party to perform such services in
accordance with Section 8.08.

(7)           Relocation Outside the United
States.  With respect to any Services
previously implemented in countries outside the United States (e.g.,
Core Obligations implemented in India or Mexico, as applicable, pursuant to Section
13.02 or 13.03), if THC wishes PSC to relocate such Services to
another country outside the United States, THC shall provide PSC with written
notice.  Upon PSC’s receipt of such
notice, the Parties will meet and negotiate in good faith to agree upon the
terms and conditions of such relocation, which shall include (a) with respect
to any Core Obligations services, adjustments in the Core Enterprise Annual Fee
associated with any increase or decrease in PSC’s operational costs in such
country; and (b) with respect to any Offshore Special Services, the applicable
Special Services Hourly Rate or adjustments in any fixed price Special Services
Fees associated with any increase or decrease in PSC’s operational costs in
such country; provided, however, unless the Parties agree otherwise in writing,
THC shall be responsible for all reasonable one-time transition costs and
increases in Sales Taxes, if any, associated with such relocation of such
Services.  If the Parties do not agree on
the terms and conditions of such relocation, PSC will not be obligated to
relocate such Services.

(8)           Relocation at PSC’s Requ est.  THC consent for relocation of any Services
provided under this Agreement is a prerequisite for any relocation of such
Services.  In the event THC approves a
request from PSC to relocate the performance of any Services (other than as set
forth in Sections 13.02 through Section 13.06(7)), the Parties
shall mutually agree upon who shall pay the 
transition costs and the allocation of cost savings associated with such
relocation, if any.

 52

13.07       Systems Location.  All Tenet Systems, Enterprise Systems
Software and Tenet Data shall be physically located at Service Locations within
the United States, regardless if any Services are migrated offshore or not.

13.08       Offshore Disruptions.

(1)           PSC shall establish and maintain
Contingency Plans to deal with disruptions of Tier 1 Offshore Services, Tier 2
Offshore Services and Offshore Special Services substantially similar to Tier 1
Offshore Services or Tier 2 Offshore Services. 
As of the Effective Date, the current Contingency Plan for such offshore
services is attached hereto as Exhibit 1.

(2)           Except for disruptions resulting from
PSC’s failure to perform its obligations under the Agreement (excluding any
such failures caused by Force Majeure Event(s) as described Section 20.02)),
in so far as the applicable Contingency Plan(s) for the services described in
this Section 13.08 provides for the reallocation of PSC resources on a
temporary basis and, as a result of such reallocation, (a) PSC is unable to
maintain the Core Performance Standards or Special Services Performance
Standards, PSC’s failure to maintain such Performance Standards shall be
excused until the earlier of the end of the disruption(s) or, if applicable,
the completion of the implementation of the migration plan referenced in
Section 13.08(3) below, and (b) PSC shall not be required to perform any Core
Enterprise Services that are not necessary to support the day-to-day critical
business operations of Tenet (e.g., installing upgrades, application
development activities, planned maintenance, new system installation) until the
ealier of the end of the disruption(s) or, if applicable, the completion of the
implementation of the migration plan referenced in Section 13.08(3) below, (a);
provided, however, PSC shall use commercially reasonable efforts to minimize
any degradation of service caused by the reallocation of the resources.

(3)           If PSC determines after a reasonable
period of time after the occurrence of the disruptions that PSC will be unable
to restore the impacted Tier 1 Offshore Services, Tier 2 Offshore Services or
Offshore Special Services substantially similar to Tier 1 Offshore Services or
Tier 2 Offshore Services at the affected offshore PSC Service Location(s) for
an extended period of time due to such disruptions, PSC will develop a plan to
migrate the performance of such impacted offshore services to one or more other
PSC service centers in the United States or other countries outside the United
States (where PSC has the necessary facilities and staff to provide such
services), which plan shall include (i) the identity of such PSC service
center(s); (ii) an estimated time frame for the completion of such migration;
(iii) equitable adjustments to the Fees due to the additional costs of
performing such services in such PSC service center(s); and (iv) any one-time
costs associated with such migration and which Party shall be responsible for
such costs.  

 53
 

Such plan will be
delivered to THC no later than forty-five (45) days after the occurrence of the
disruption and will be subject to THC’s approval, which shall not be
unreasonably withheld; provided, however, if the disruptions are the result of
PSC’s failure to perform its obligations under the Agreement (excluding any
such failure caused by Force Majeure Event(s) as described Section 20.02),
[**].  Nothing in this Section 13.08
is intended to limit Tenet’s termination rights described in Section
[**] of the Agreement.

13.09       Tenet Consents.  Notwithstanding Section 13.02, PSC
shall not commence implementation of the Tier 1 Offshore Services for specific
third party software applications for which a Tenet Consent as set forth in Section
17.01(3)(c) or a work-around for such Tenet Consents as set forth in Section
17.02 is required until such Tenet Consent or work-around has been obtained
for the specific application. 
Notwithstanding Section 13.03, if the Agreed Tier 2 Offshore
Services for a particular Agreed Tier 2 Tenet Software application can not be
migrated to India as scheduled as a result of the inability to obtain a Tenet
Consent described in Section 17.01(3)(c) or a work-around for such Tenet
Consent as set forth in Section 17.02, Tenet may elect to substitute
such Agreed Tier 2 Tenet Software application for an Optional Tier 2 Tenet
Software application and the Parties shall make an equitable financial
adjustment to the applicable Fees and costs associated with the affected
applications.

ARTICLE 14.                                                  PROJECT
TEAM.

14.01       Management Committee. The
management committee shall consist of five members appointed by THC, namely the
Chief Information Officer, Vice President for Clinicals, Vice President for
Financials, Vice President for Patient Systems, and Vice President for
Operations; and five members appointed by PSC, namely the PSC Client Executive,
Chief Operations Officer, Senior Manager Financials, Senior Manager Patient
Systems, and Senior Manager Infrastructure (the “Management Committee”). 
A member of the Management Committee may be replaced at any time by the
Party that originally appointed such member to the Management Committee with
the prior consent of the other Party. 
Unless otherwise agreed by the Parties, the chairperson of the
Management Committee will be the PSC Client Executive.  No Management Committee member shall have
voting power greater than any other Management Committee member.  The Management Committee shall be authorized
and responsible for (1) generally overseeing the performance of this Agreement
and (2) providing strategic direction with respect to this Agreement.

14.02       PSC Client Executive. PSC shall
appoint one of its employees to serve on a full-time basis as the primary PSC
contact under this Agreement (the “PSC
Client Executive”).  PSC’s
appointment of any PSC Client Executive shall be subject to THC’s consent.  The initial PSC Client Executive under this 

 54
 

Agreement
shall be [**].  The PSC Client Executive
shall be subject to the Key Employee restrictions set forth in Section 14.04,
except that he or she shall not be replaced for at least two years after his or
her designation as the PSC Client Executive. 
A PSC Client Executive may be removed by THC upon reasonable prior
notice to PSC.  The PSC Client Executive
shall be located at PSC’s offices in the greater Dallas, Texas, metropolitan
area unless otherwise agreed upon by the Parties.

14.03       PSC Quality Manager.  PSC shall appoint one of its employees to
serve as the quality manager under this Agreement (the “PSC Quality Manager”).  The PSC Quality Manager is responsible for
measuring process performance against standards and analyzing and reporting
variances, monitoring improvement of repeatable processes, facilitating risk
mitigation for compliance issues, and maintaining the PSC internal quality
management plan for the Tenet account. 
This position is independent of the Tenet account operations and has a
dotted line to PSC’s Division Healthcare Quality Manager.  The initial PSC Quality Manager shall be
[**].  The PSC Quality Manager shall be
subject to the Key Employee restrictions set forth in Section 14.04,
except that he or she will not be assigned to the Tenet account on a full-time
basis.

14.04       Key Employees. THC and PSC shall
meet annually in respect of each Contract Year during the Term to update the
list of Key Employees.  Except for the
PSC Quality Manager, the Key Employees shall be assigned to the Tenet account
on a full-time basis unless otherwise agreed by THC.  Except for a replacement or reassignment of a
Key Employee due to the occurrence of a Reassignment Waiver or a specific
waiver by the Management Committee, PSC shall (1) not reassign off the Tenet
account any Key Employee (A) for one year after his or her initial designation
as a Key Employee or (B) identified by the Tenet Account Executive and the PSC
Client Executive as important to a particular Project prior to the time that
such Project is completed to the reasonable satisfaction of THC; (2) not
reassign off the Tenet account any Key Employee unless PSC can demonstrate to
THC’s reasonable satisfaction that such reassignment off the Tenet account will
not have an adverse effect on the business of Tenet; and, (3) only replace or
reassign a Key Employee after notice to THC.

14.05       PSC Project Personnel.  Subject to the terms of this Article 14,
PSC shall appoint and manage the PSC Project Personnel such that, in respect of
each Contract Year, the turnover rate of the PSC Project Personnel whose
primary assignment is the provision of Services to Tenet shall not exceed [**]
percent of the total number of such PSC Project Personnel so employed in such
Contract Year (excluding for purposes of this calculation, any individual who
voluntarily resigns from PSC or is dismissed by PSC for (i) misconduct  (e.g., fraud, drug abuse, theft) or
(ii) unsatisfactory performance as determined by PSC in respect of his or her
duties and responsibilities to Tenet pursuant to this Agreement or (iii)
inability or 

 55
 

unavailability
to work due to a death, disability, military leave or leave under applicable
laws, including the Family Medical and Leave Act).  PSC shall notify THC as soon as possible
after dismissing or reassigning any of the PSC Project Personnel whose normal
work location is at a Tenet Service Location.

14.06       Review Meetings.  THC and PSC shall hold periodic meetings
between their representatives as frequently as the Parties shall agree.  At a minimum these meetings shall include the
following: (1) meetings among operational personnel to discuss ongoing issues
relating generally to daily performance and planned or anticipated activities
and changes; (2) management meetings to review the performance report, the
project schedule report, the changes report and such other matters as
appropriate; and, (3) senior management meetings to review relevant contract
and performance issues.  All meetings
shall have a published agenda issued by PSC sufficiently in advance of the
meeting to allow meeting participants a reasonable opportunity to prepare for
such meeting.  Notwithstanding the
foregoing, PSC is willing to participate in such meetings as often as THC shall
reasonably request.

14.07       Subcontractors.

(1)           PSC may not subcontract or outsource
any of the Services to any subcontractors other than the Pre-approved
Subcontractors listed in Exhibit 6 without THC’s consent, except as
provided in Section 14.07(2).

(2)           PSC may subcontract without THC’s
consent (a) administrative and clerical services and (b) programmers and other
skilled personnel within the United States to the extent that the total number
of such subcontracted programmers and other skilled personnel does not exceed
[**] percent of the total number of programmers and other skilled personnel
providing Core Obligations within the United States whose primary assignment is
the provision of Services to Tenet (other than former ISD employees or
subcontractors of ISD engaged by PSC as subcontractors or consultants as of the
Effective Date).

(3)           The consent of THC to any
subcontracting shall not relieve PSC of its responsibility for the performance
of its obligations under this Agreement. 
PSC shall be responsible for the work and activities of each of its
subcontractors, including compliance with the terms of this Agreement.  PSC shall be responsible for all payments to
its subcontractors.

(4)           Except as set forth in this
Agreement, in no event shall PSC subcontract or permit the performance of any
Services outside of the United States without THC express prior written
consent.

(5)           Subject to Section 14.07(1),
if PSC subcontracts or outsources any of the Services or any other of its
obligations under this Agreement which, by 

 56
 

their
nature, involve use of, custody of, disclosure of, creation of, or afford
access to Protected Health Information, the provisions of Section
24.10(1)(B)(ii) herein shall apply to such contractors or outsource
providers.  Further, PSC shall obtain and
maintain enforceable agreements with its permitted subcontractors and outsource
providers whose duties, by their nature, involve use of, custody of,  disclosure of, creation of, or afford access
to Protected Health Information to ensure that its subcontractors and outsource
providers are bound to adhere to and comply with the confidentiality, rights in
data, audit, and regulatory compliance obligations assumed by PSC under this
Agreement and that such subcontractors and outsource providers are prohibited
from further subcontracting or outsourcing their services without the prior
written consent of PSC.  PSC shall not
consent to such further subcontracting or further outsourcing without THC’s
approval.

14.08       Conduct of PSC Project Personnel. While
at the Tenet Service Locations, PSC Company Contractors and PSC Project
Personnel shall (1) comply with THC’s requests, rules and regulations regarding
personal and professional conduct (including, but not limited to, the wearing
of an identification badge and adhering to regulations and general safety
practices or procedures) generally applicable to such Tenet Service Locations
and (2) otherwise conduct themselves in a businesslike and professional
manner.  In the event that THC determines
in good faith that a particular employee, contractor or subcontractor is not
conducting himself or herself in accordance with this Section 14.07, THC
may provide PSC with notice and documentation in respect of such conduct.  Upon receipt of such notice, PSC shall promptly
investigate the matter and take appropriate action.

14.09       Background Checks.

(1)           Background Checks.

(a)           United States.  With respect to any PSC Project Person whose
primary place of employment for performing the Services is (or will be) located
in the United States, prior to assigning any such PSC Project Person to perform
any of the Services, PSC will perform (or will have previously performed) a
background check, including educational background, work history, and criminal
background, as permitted by applicable law. 
The scope and manner of such background checks will be subject to a
commercially reasonable standard with respect to providers of similar services
in the United States.

(b)           Outside of the United States.  With respect to any PSC Project Person whose
primary place of employment for performing the Services is (or will be) located
in countries other than the United States, prior to assigning any such PSC
Project Person to perform any of the Services, PSC will perform (or will have
previously performed) a background check including educational background, work
history, and criminal background, as permitted by applicable law.  The scope 

 57
 

and
manner of such background checks will be subject to a commercially reasonable
standard with respect to providers of similar services in each such country.
Notwithstanding the foregoing, as permitted by applicable law, with respect to
Services to be provided in India, the criminal record background check shall
include physical verifications of the records of the jurisdictional police
stations associated with the PSC Project Person’s permanent residence address
in India and, if applicable, the PSC Project Person’s temporary residence
address in India, to the extent available. 
In the event that, in accordance with the terms of this Agreement, THC
requests a relocation of the Services to a country other than the country from
which the Services are then-currently being performed and the cost of
conducting such background checks in such new Service Location exceeds such
costs in the country from which the Services were relocated and such increased
costs are due solely to the relocation, then any such increased costs will be
considered as part of the “one-time transition costs” associated with such
relocation in accordance with Article 13 of this Agreement.

(2)           Healthcare Exclusion Lists.

(a)           Initial PSC Screened Group.  Within 90 days of the Effective Date (the “Screening Date”), PSC shall have
screened (i) PSC and the directors and officers of PSC, (ii) PSC’s owners
(other than shareholders who have an ownership interest of less than 5%), (iii)
each PSC Affiliate, as well as the respective directors and officers of each
such PSC Affiliate; (iv) each PSC Company Contractor (other than PSC
Affiliates) and each PSC Project Person; provided, however, with respect to
clauses (iii) and (iv) only if such PSC Affiliates, PSC Company Contractors and
PSC Project Personnel were performing Services as of the Effective Date or
performed Services between the Effective Date up through the Screening Date
(collectively, the “Initial PSC Screened
Group”) against the
following lists: (A) the Office of the Inspector General of the U.S. Department
of Health and Human Services General List of Excluded Individuals/Entities; and
(B) the U.S. General Services Administration’s List of Parties Excluded from
Federal Procurement and Non-procurement Programs (collectively, the “Healthcare Exclusion Lists”).

(b)           On an annual basis as of each
anniversary of the Screening Date, PSC shall screen (i) PSC and the directors
and officers of PSC, (ii) PSC’s owners (other than shareholders who have an
ownership interest of less than 5%), (iii) each PSC Affiliate, as well as the
respective directors and officers of each such PSC Affiliate; (iv) each PSC
Company Contractor (other than PSC Affiliates) and each PSC Project Person;
provided, however, with respect to clauses (iii) and (iv) only if such PSC
Affiliates, PSC Company Contractors and PSC Project Personnel were performing
Services as of such anniversary of the Screening Date (each a “Subsequent PSC Screened Group”) against
the Healthcare Exclusion Lists.  Prior to
assigning any PSC Project Personnel and PSC Company Contractors 

 58
 

to
perform any of the Services, PSC shall screen, or shall have screened no later
than as of the then most recent anniversary of the Screening Date, such PSC
Project Personnel and PSC Company Contractors against the Healthcare Exclusion
Lists.

(c)           PSC agrees to provide notice to THC
immediately in writing in the event it becomes aware that at any time during
the term of this Agreement, any member of the Initial PSC Screened Group or a
Subsequent PSC Screened Group is an Ineligible Person; provided, however, with
respect to PSC Affiliates (and their respective officers and directors), PSC
Company Contractors or PSC Project Personnel, only if such PSC Affiliates, PSC
Company Contractors or PSC Project Personnel were Ineligible Persons during any
period when they were  performing
Services.  For purposes of this
Agreement, “Ineligible Person” shall mean an individual or entity who (a) is
excluded, debarred, suspended or otherwise ineligible to participate in the
Federal health care programs as defined in 42 USC § 1320a-7b(f) (collectively, “Federal Healthcare Programs”); or (b)
has been convicted of a criminal offense that falls within the ambit of 42
U.S.C. § 1320a-7(a), but has not yet been excluded, debarred, suspended, or
otherwise declared ineligible.

(d)           PSC represents and warrants to THC
that (i) as of the Screening Date, (A) PSC has screened the Initial PSC
Screened Group against the Healthcare Exclusion Lists; and (B) none of the
Initial PSC Screened Group who were performing Services from the Effective Date
up through the Screening Date are Ineligible Persons; and (ii) as of each anniversary
of the Screening Date, (A) PSC has screened the Subsequent PSC Screened Group
as of such anniversary; and (B) none of such Subsequent PSC Screened Group who
were performing Services as of such anniversary date are Ineligible Persons.  Section 14.09(2)(d)(ii) shall
constitute an ongoing representation and warranty during the term of this
Agreement.

(e)           If PSC or any PSC Affiliate who is
then-currently providing any of the Services is excluded, debarred, suspended
or otherwise ineligible to participate in any of the Federal and State
Healthcare Programs[**].

(3)           Non-Assignment/Removal of PSC
Company Contractors and PSC Project Personnel.

(a)           Non-Assignment.

(i)            PSC Project Personnel.  PSC shall not assign any PSC Project Person
to perform any of the Services if (A) the background check referenced in Section
14.09(1)(a) or Section 14.09(1)(b), as applicable, revealed (or if
such background check was not performed, but would have revealed) or PSC is 

 59
 

otherwise
aware that the PSC Project Person has been convicted of, or has pleaded or
plead guilty to, any (1) crime involving fraud, which (assuming a commercially
reasonable standard) would represent a material risk if such individual is
allowed to perform the Services they are assigned to perform, or (2)
misdemeanor or felony involving a violent crime, drug trafficking, or U.S.
healthcare laws; or (B) the applicable Healthcare Exclusion Lists screening
process referenced in Section 14.09(2)(a) or (b) revealed (or if
such screening was not performed, but would have revealed) or PSC is otherwise
aware that such PSC Project Person is an Ineligible Person.  If PSC assigns any PSC Project Person to
perform any of the Services (x) when the background check referenced in Section
14.09(1)(a) or Section 14.09(1)(b), as applicable, revealed (or if
such background check was not performed, but would have revealed) or PSC is
otherwise aware that the PSC Project Person has been convicted of, or has
pleaded or plead guilty to, a misdemeanor or felony involving U.S. healthcare
laws; or (y) when the applicable Healthcare Exclusion Lists screening process
referenced in Section 14.09(2)(a) or (b) revealed (or if such
screening was not performed, but would have revealed) or PSC is otherwise aware
that such PSC Project Person is an Ineligible Person, PSC shall provide notice
to THC in accordance with Section 14.09(2)(c) above [**].

(ii)           PSC Company Contractors.  PSC shall not assign any PSC Company
Contractor to perform any of the Services if the applicable Healthcare
Exclusion Lists screening process referenced in Section 14.09(2)(a) or (b)
revealed (or if such screening was not performed, but would have revealed) or
PSC is otherwise aware that such PSC Company Contractor is an Ineligible
Person. If PSC assigns any PSC Company Contractor to perform any of the
Services when the applicable Healthcare Exclusion Lists screening process
referenced in Section 14.09(2)(a) or (b) revealed (or if such
screening was not performed, but would have revealed) or PSC is otherwise aware
that such PSC Company Contractor is an Ineligible Person, PSC shall provide
notice to THC in accordance with Section 14.09(2)(c) [**].

(b)           Removal.

(i)            PSC Project Personnel.  If PSC discovers through the applicable
Healthcare Exclusion Lists screening process referenced in Section
14.09(2)(a) or (b) (or if such screening was not performed, but PSC
would have discovered during such screening) or PSC otherwise becomes aware,
that any PSC Project Person who is then-currently performing any of the
Services (A) is an Ineligible Person; or (B) has been convicted of, or has
pleaded or plead guilty to, any (1) crime involving fraud, which (assuming a
commercially reasonable standard) would represent a material risk if such
individual is allowed to perform the Services they are assigned to perform; or
(2) misdemeanor or felony involving a violent crime, drug trafficking, or U.S.
healthcare laws, PSC shall promptly remove such 

 60
 

PSC
Project Person from performing any of the Services.  If PSC fails to so remove any such PSC Project
Person, [**].

(ii)           PSC Company Contractors.  If PSC discovers through the applicable
Healthcare Exclusion Lists screening process referenced in Section
14.09(2)(a) or (b) (or if such screening was not performed, but PSC
would have discovered during such screening) or PSC otherwise becomes aware,
that any PSC Company Contractor who is then-currently performing any of the
Services is an Ineligible Person, PSC shall promptly remove such PSC Company
Contractor from performing any of the Services. 
If PSC fails to so promptly remove any such PSC Company Contractor,
[**].

ARTICLE 15.                                                  MANAGEMENT
AND CONTROL.

15.01       Management Procedures Manual.  Prior to the Commencement Date, PSC shall
deliver to THC a management procedures manual in the form and scope agreed upon
by THC and PSC which establishes the procedures and policies that will be
adhered to during the Term (“Management
Procedures Manual”).  The
Management Committee may annually review the Management Procedures Manual.
Throughout the remaining Term of this Agreement, PSC shall maintain and
periodically update and modify the Management Procedures Manual, in a form
reasonably acceptable to THC.  PSC will
deliver copies of all revisions or updates to such Management Procedures Manual
within thirty (30) days following adoption of such revisions or updates.  The Parties anticipate that a Management
Procedures Manual shall generally summarize practices and procedures pertaining
to performance and management of:  (1)
the Core Obligations, (2) the computer hardware and software environments in
which the Services will be performed, (3) the documentation (such as operations
manuals, user guides and disaster recovery plans) which provides further
details regarding the Services and any new Performance Standards, and (4) the
procedures PSC intends to use and the activities PSC proposes to undertake in
order to manage the Services, including, when appropriate, those direction,
supervision, monitoring, staffing, reporting, planning and oversight activities
normally undertaken at the Tenet Service Locations where critical business,
commercial and financial data of Tenet are processed.  The Management Procedures Manual shall
include (a) a governance model; (b) enterprise architecture role; (c)
implementation plan for Change Control Procedures; (d) problem request process
for service management; and (e) in the event of the occurrence of the situation
described in Section 12.03, PSC’s process to restrict access in any
shared environment to Tenet’s Confidential Information so that PSC’s employees,
subcontractors or agents engaged in competitive business will not have access
to Tenet’s Confidential Information as set forth in Section 12.03.  Until any such time as the Management
Procedures Manual has been delivered to THC pursuant to this Section, and
except as otherwise required or permitted by this Agreement, PSC shall follow
and comply with the policies and 

 61
 

procedures
followed by and complied with by PSC as of the Effective Date in respect of the
Core Obligations under the 2001 Agreement. 
Except as may be expressly agreed to by the Parties pursuant to a
separate acknowledgement, the Management Procedures Manual shall not be deemed
to contradict the terms of this Agreement.

15.02       Change Control Procedures.  All modifications to the Change Control
Procedures shall be in writing and mutually agreed to by THC and PSC.  All Changes shall be made pursuant to the
Change Control Procedures.  No Change
shall be implemented without THC’s approval in accordance with the Change
Control Procedures except as may be necessary on a temporary basis to maintain
the continuity of the Services. As part of
its Core Obligations, PSC shall: (1) schedule all Changes so as not to
unreasonably interrupt Tenet’s business operations, (2) prepare and deliver to
THC a monthly rolling schedule for ongoing and planned Changes for the next
30-day period, (3) monitor the status of Changes against the applicable
schedule, (4) document and provide to THC notification (which may be given
orally provided that such oral notice is confirmed in writing to THC within
five days) of all Changes performed on a temporary basis to maintain the
continuity of the Services no later than the next business day after the Change
was made and (5) once every 180 days during the Term review and modify as
appropriate the Change Control Procedures. 
In the event of a conflict between the Change Control Procedures and
this Agreement, the terms of this Agreement shall control.  Any Change that results in a change or
modification to the Agreement shall be made in accordance with Section 36.11,
in addition to the Change Control Procedures.

ARTICLE 16.                                                  PROPRIETARY
RIGHTS.

16.01       Tenet Software. To the extent
permitted by the licenses or leases in respect of the Tenet Third Party
Software, but without limiting Tenet’s obligations under Article 17 and
the provisions of Section 3.11, Tenet hereby grants to PSC, at no cost
to PSC, solely to provide the Services, a non-exclusive, non-transferable right
to (1) use, (2) copy for archival purposes or as may otherwise be required by
this Agreement and (3) modify the Tenet Software; provided, however, that PSC
may not decompile, disassemble or otherwise reverse engineer the Tenet Software
in any manner.  As of the Effective Date,
Tenet shall, at no cost to PSC, provide PSC with access to the Tenet Software
in the form in use by Tenet as of the Effective Date.  Subject to Section 14.07 and Article
25, PSC may sublicense to PSC’s subcontractors the right to have access to
and operate the Tenet Software as may be necessary in connection with the
provision of the Services.  PSC shall not
purge source code to any Tenet Software without the prior written consent of
THC.  Except as otherwise agreed by the
Parties, rights granted to PSC in this Section 16.01 shall expire upon
the later of the expiration or the termination of this Agreement for any reason
or the expiration of the Termination Assistance Period.

 

 62

16.02       PSC Proprietary Software.  The PSC Proprietary Software shall be and
shall remain the exclusive property of PSC and Tenet shall have no rights or
interests in the PSC Proprietary Software except as described in this Section
16.02.  Prior to using any PSC
Proprietary Software to provide any of the Services, PSC shall notify THC that
it intends to use PSC Proprietary Software. 
As part of the Core Obligations, PSC shall during the Term: (1) use the
PSC Proprietary Software and such other software as THC and PSC may agree upon
from time to time, as may be required to provide the Services; and, (2) make
available to Tenet such PSC Proprietary Software for use by Tenet solely if
such use is reasonably required for Tenet to access Tenet Systems or to receive
the Services.  Upon the expiration of
this Agreement or the termination of this Agreement for any reason (other than
a termination by PSC pursuant to Section 28.03, Section 28.04 or Section
28.05), Tenet’s rights to the PSC Proprietary Software shall be as provided
in Article 31.  In the event of a
termination of this Agreement by PSC pursuant to Section 28.03, Section
28.04 or Section 28.05, upon THC’s request, with respect to PSC
Proprietary Software used to provide the Services as of the date of such termination,
provided that THC and PSC agree with respect to royalties and other applicable
terms and conditions, PSC shall grant to Tenet a license to use the PSC
Proprietary Software solely in connection with Tenet’s business.

16.03       PSC Third Party Software.  The PSC Third Party Software shall be and
shall remain the exclusive property of PSC’s third party licensors and Tenet
shall have no rights or interests in the PSC Third Party Software except as
described in this Section 16.03. 
As part of the Core Obligations, PSC shall during the Term: (1) use the
PSC Third Party Software to provide the Services; (2) to the extent permitted
by the licenses or leases in respect of the PSC Third Party Software, make
available to Tenet such software for use by Tenet solely if such use is
reasonably required for Tenet to access Tenet Systems or to receive the
Services; and, (3) to the extent permitted by the licenses or leases in respect
of the PSC Third Party Software, deliver to THC, upon THC’s request, no more
than once every quarter after the Effective Date, a copy of such software
(including related source code) (at no cost to Tenet) for archival purposes
only.  Upon the expiration or the
termination of this Agreement for any reason, Tenet’s rights to the PSC Third
Party Software shall be as provided in Article 31.

16.04       Developed Software.  The Developed Software shall be and will
remain the exclusive property of [**] or its third party licensor.  In consideration of the payments made
pursuant to Section 22.01 and subject to and without limiting the
Parties’ respective obligations in Article 17, [**] hereby assigns to
[**] all of [**] rights in and interests (if any) to the Developed
Software.  Subject to and without
limiting the Parties’ respective obligations in Article 17, [**] hereby
grants to [**] (at no cost to [**]) a non-exclusive, non-transferable right to
use the Developed Software [**].  As part
of the Core Obligations, PSC shall during the Term deliver to THC, upon THC’s
request, no more than once every quarter after the Effective

 63
 

Date,
a copy of the Developed Software (including related source code) for archival
purposes only.  Upon the later of the
expiration of this Agreement or the termination of this Agreement for any
reason or the expiration of the Termination Assistance Period, the rights
granted to [**]in this Section 16.04 shall immediately revert to [**]
and [**] shall: (1) deliver to [**], at no cost to [**], a current copy of all
such Developed Software in the form in use as of the date of such expiration or
termination; and, (2) erase or destroy all other copies of the Developed
Software in [**] possession.  PSC shall
not purge source code to any Developed Software without the prior written
consent of THC.

16.05       Infringement. In the event that
the Services, the PSC Proprietary Software, or PSC Developed Software
(excluding any modifications or enhancements to Tenet Developed Software or
Tenet Software for which Tenet has responsibility for Consents as set forth in Article
17 and lack of appropriate consent is the cause of such infringement) is
found to be infringing upon the proprietary rights of a third party, PSC shall,
at its own expense: (1) obtain the right to use the infringing material; (2)
modify the software or material so that it is no longer infringing; or, (3)
obtain and install functionally similar software or materials that are not
infringing.

16.06       Changes and Upgrades to the Systems.
Except as set forth in Sections 3.09 and 3.11, or as otherwise
approved by THC, PSC may not make any changes or modifications to the Tenet
Software or the Developed Software. 
Except as may be approved by THC, any changes or modifications to the
PSC Software made by PSC pursuant to this Agreement shall not have an adverse
effect on the functionality or performance of the Systems except as may be
necessary on an emergency basis to maintain the continuity of the Services.

16.07       Documentation.  Except as set forth in Section 16.02
and Section 16.03 with respect to the PSC Software, all Documentation
shall be and will remain the exclusive property of Tenet.  In consideration of the payments made
pursuant to Section 22.01, PSC hereby assigns to Tenet all rights and
interests that PSC has or may have in the future in and to the Documentation.

ARTICLE 17.                                                  REQUIRED
CONSENTS.

17.01       Consents.

(1)           PSC shall be responsible for
obtaining (a) the Tenet Consents that are necessary to allow PSC to use in the
United States the Tenet Enterprise Software, the Tenet Enterprise Machines, the
Tenet Developed Software and the services under Tenet’s third party service
contracts, any of which existed as of the Effective Date (and Tenet shall
cooperate with PSC in obtaining such Tenet Consents); and (b) the PSC Consents
that are necessary to allow (i) PSC to use and

 64
 

make
any modifications or enhancements to the Tenet Software and the Tenet Developed
Software made by PSC, PSC Project Personnel or PSC Company Contractors pursuant
to this Agreement that existed as of the Effective Date; (ii) PSC to use the
PSC Software, the PSC Developed Software (excluding any modifications or
enhancements to the Tenet Software or the Tenet Developed Software made by PSC,
PSC Project Personnel or PSC Company Contractors pursuant to this Agreement)
and the PSC Machines in the United States to provide the Services, (iii) PSC to
assign to Tenet all rights and title in the PSC Developed Software in
accordance with the terms of this Agreement (subject to Tenet’s obligations
under Section 17.01(3), and (iii) Tenet to use the PSC Software and the
PSC Developed Software (subject to Tenet’s obligations under Section
17.01(3)) during the Term and upon expiration or termination of this
Agreement pursuant to Article 30. 
The costs of obtaining such consents or a work-around as provided in Section
17.02 below shall be apportioned as follows: (a) [**] shall pay [**]
percent of all costs of obtaining such Consents up to $[**]; (b) [**] shall
[**] pay [**] percent of all costs of obtaining such Consents between $[**] and
$[**]; and (c) [**] shall pay [**] percent of all costs obtaining the Consents
above $[**].

(2)           PSC shall be responsible for
obtaining the PSC Consents that are necessary to allow PSC India Resources, PSC
Mexico Resources and PSC Other Offshore Resources to use the PSC Software, the
PSC Developed Software (excluding any modifications or enhancements to the
Tenet Software or the Tenet Developed Software made by PSC, PSC Project
Personnel or PSC Company Contractors pursuant to this Agreement after the
Effective Date) and the PSC Machines to provide the Services.  PSC shall be responsible for the costs of
obtaining such PSC Consents or a work-around as provided in Section 17.02
below.

(3)           Tenet shall be responsible for
obtaining, and PSC shall cooperate with Tenet in, obtaining the Tenet Consents
necessary to allow (a) PSC to use in the United States the Tenet Facility
Systems to provide the Services; (b) PSC to use in the United States any Tenet
Enterprise Software, Tenet Enterprise Machines and any services under Tenet’s
third party service contracts, any of which did not exist as of the Effective
Date (i.e., additional Tenet Software, Tenet Machines and additional Tenet
third party service contracts procured by Tenet) to provide the Services
(except as provided in Section 17.01(4));  (c) PSC to create after the Effective Date,
and use after the Effective Date, pursuant to this Agreement, any modifications
or enhancements to the Tenet Software or the Tenet Developed Software; (d) PSC
India Resources, PSC Mexico Resources and PSC Other Offshore Resources to use the
Tenet Software, the Tenet Developed Software, the Tenet Machines and the
services under Tenet’s third party service contracts to provide the
Services.  THC shall be responsible for
the costs of obtaining such Tenet Consents or a work-around as provided in Section
17.02 below.

 65
 

(4)           Any Consents associated with
Additional Equipment and Additional Software Licenses shall be governed by the
Procurement Procedures, in lieu of this Article 17.

17.02       Work-Around.  If PSC is not able to obtain a Consent under Section
17.1(1) or Section 17.1(2), or Tenet is not able to obtain a Consent
under Section 17.1(3), PSC and Tenet shall cooperate with each other in
achieving a reasonable work-around.  If
such a work-around is required, there shall be an equitable adjustment to the
terms of this Agreement as agreed upon by the Parties.

ARTICLE 18.                                                  TENET
RESPONSIBILITIES.

In addition to Tenet’s
other responsibilities provided for in this Agreement, during the Term, THC
shall be responsible for:

(1)           the appointment of the Tenet Account
Executive;

(2)           selecting or defining requirements
for applications software; and

(3)           cooperating with PSC by, among other
things, making available, as reasonably requested by PSC, personnel,
information, approvals and acceptances so that PSC may perform its obligations
hereunder in a timely and acceptable manner.

(4)           obtaining such consents, if any, that
might be required for delivery of Protected Health Information to PSC for the
purposes permitted under this Agreement.

ARTICLE 19.                                                  REPORTS
AND DATA.

19.01       Ownership of Tenet Data. The Tenet
Data is and shall remain the property of Tenet. 
The Tenet Data shall not be: (1) used by PSC other than in connection
with providing the Services; (2) disclosed, sold, assigned, leased or otherwise
provided to third parties by PSC (except as provided for in this Agreement and
subject to Section 14.07 and Articles 24 and 25); or, (3)
commercially exploited by or on behalf of PSC, its employees, subcontractors or
agents.

19.02       Correction of Errors.  As part of the Core Obligations, PSC shall
promptly correct any errors or inaccuracies in the Tenet Data and the Reports
(1) caused by PSC’s failure to perform its obligations under this Agreement or
(2) which fall within the [**] at Tenet’s facilities prior to the effective
date of the [**]; provided however, in regard to the SMS Software, PSC’s
obligations to correct errors or inaccuracies shall be limited to errors or
inaccuracies caused by PSC in connection with the use of the SMS Software.  PSC shall promptly correct, as a Special
Service, any other errors or inaccuracies in the Tenet Data and the Reports.

 66
 

Notwithstanding
the foregoing, PSC shall not make any changes to the Tenet Data without THC’s
prior approval.  Tenet is responsible for
(i) the accuracy and completeness of the Tenet Data and (ii) any errors or
inaccuracies in and with respect to data obtained from PSC because of any
inaccurate or incomplete Tenet Data.

19.03       Return/Destruction of Tenet Data.  Upon request by THC, at any time, PSC shall,
in accordance with Section 25.06, promptly provide copies to THC of all
or a portion of the Tenet Data as THC might specify, including Protected Health
Information and Designated Record Sets, then currently in PSC’s possession,
custody or control (including Tenet Data, if any, in the possession, custody or
control of PSC’s subcontractors and outsource providers).  At the cessation of all Termination
Assistance Services, PSC and its subcontractors and outsource providers, if
any, which have received Tenet Data hereunder, including Protected Health
Information, shall in accordance with Section 25.06 return or certified
as destroyed all Tenet Data then currently in their possession, custody or
control.  Data archival media containing
any Tenet Data shall be used solely for back-up purposes.

19.04       Reports. As part of the Core
Obligations, PSC shall provide to THC the Reports.  The Reports shall be prepared by PSC and
provided by PSC to THC according to the schedules and in the manner set forth
in Exhibit 2  [Core Obligations].

ARTICLE 20.                                                  CONTINUED
PROVISION OF SERVICES.

20.01       Disaster Recovery.  As part of the Core Obligations, PSC shall:
(1) maintain and manage the existing disaster recovery plans, as described in Exhibit
11; (2) at least once every calendar year thereafter during the Term,
recommend updates to and test the operability of the disaster recovery plans in
effect at that time; (3) upon THC’s request, certify to THC that the disaster
recovery plans are fully operational; and, (4) upon discovery by PSC,
immediately provide THC with a notice of a Disaster and implement the disaster
recovery plans upon the occurrence of a Disaster at a Service Location or
otherwise affecting the provision or receipt of the Services.  Subject to Section 20.02, PSC shall
reinstitute the Critical Services within [**] of the occurrence of a
Disaster.  In the event of a Disaster,
[**].  Nothing contained in this Section
20.01 shall be construed as requiring PSC to develop or provide disaster
recovery plans for the data center(s) operated by SMS.

20.02       Force Majeure.

(1)           Any failure or delay by Tenet or PSC
in the performance of its obligations pursuant to this Agreement, to the extent
such failure or delay is due to the occurrence of a Force Majeure Event, shall
not be deemed (A) a default of this

 67
 

Agreement,
(B) a ground for termination hereunder (except as provided in this Section
20.02) or (C) a ground for payment of a Core Performance Credit, provided
that such failure or delay could not have been prevented by reasonable
precautions and cannot reasonably be circumvented by the non-performing Party
through the use of alternate sources, work-around plans or other means
(including, but not limited to, adherence to the applicable Contingency Plans
with respect to any Force Majeure Event that affects PSC’s offshore performance
of Tier 1 Offshore Services,  Tier 2
Offshore Services or other Special Services or Additional Core Obligations
substantially similar to Tier 1 Offshore Services or Tier 2 Offshore Services).

(2)           Upon the occurrence of a Force
Majeure Event, the non-performing Party shall be excused from any further
performance of its obligations pursuant to this Agreement affected by the Force
Majeure Event for as long as (A) such Force Majeure Event continues; (B) such
Party continues to use its best efforts to recommence performance whenever and
to whatever extent possible without delay; and (C) with respect to any Force
Majeure Event that affects PSC’s offshore performance of Tier 1 Offshore
Services, Tier 2 Offshore Services or other Special Services or Additional Core
Obligations substantially similar to Tier 1 Offshore Services or Tier 2
Offshore Services, PSC complies with the applicable Contingency Plans.  The occurrence of a Force Majeure Event in
respect of another customer of PSC does not necessarily constitute a Force
Majeure Event under this Agreement.

(3)           The Party delayed by a Force Majeure
Event shall immediately notify the other Party by telephone (to be confirmed in
a notice within five days of the inception of such delay) of the occurrence of
a Force Majeure Event and describe in reasonable detail the nature of the Force
Majeure Event.  If a Force Majeure Event
prevents PSC from reinstituting a Critical Service within [**] days of such
Force Majeure Event, [**].  The occurrence
of a Force Majeure Event does not limit or otherwise affect PSC’s obligation to
provide either normal business continuation procedures (including, but not
limited to, adherence to the applicable Contingency Plans with respect to any
Force Majeure Event that affects PSC’s offshore performance of Tier 1 Offshore
Services, Tier 2 Offshore Services or other Special Services or Additional Core
Obligations substantially similar to Tier 1 Offshore Services or Tier 2
Offshore Services) or any other disaster recovery services as described in Section
20.01.

20.03       Allocation of Resources. Whenever
a Force Majeure Event or a Disaster causes PSC to allocate limited resources
between or among PSC’s customers and Affiliates, Tenet shall receive at least
the same priority in respect of such allocation as that received by [**].

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ARTICLE
21.    PAYMENTS.

21.01       2001 Core Fees. In consideration
of PSC providing the 2001 Core Obligations from the Effective Date through
December 31, 2006, THC shall pay to PSC the 2001 Core Fees in accordance with Section
1.02 of Exhibit 10  (Fees).

21.02       Core Enterprise Annual Fees.  In consideration of PSC providing the Core
Enterprises Services from the Commencement through the Term, THC shall pay to
PSC the Core Enterprise Annual Fees in accordance with Section 1.03 of Exhibit
10  (Fees).  PSC shall be responsible for all fees and
expenses incurred by PSC in connection with this Agreement prior to the
Effective Date; provided, however, this provision is not intended to release
Tenet from any payment obligations under the 2001 Agreement.  For the purposes of this Agreement, “as part
of the Core Obligations” means that such services or deliverables are included
in the Core Fees.

21.03       Core Facility Fees.  In consideration of PSC providing the Core Facility
Services from the Commencement Date through the Term, THC shall pay to PSC the
Core Facility Fees in accordance with Section 1.05 of Exhibit 10  (Fees).

21.04       Special Services Fees. In
consideration of PSC providing the Special Services, THC shall pay to PSC the
applicable Special Services Fees.

21.05       Rights of Set off.  With respect to any undisputed amount which
[**], the Party seeking the set off [**] until such time as the entire amount
determined to be owed has been paid.  THC
shall be relieved of its obligation to make any payments to PSC until such time
as all such amounts have been credited to THC and PSC shall be relieved of its
obligation to make any payments to THC until such time as such amounts have
been credited to PSC.

21.06       Expenses. Except as otherwise
provided in Article 12 or Article 13, all expenses (including
travel and travel-related expenses) incurred by PSC in connection with its
provision of the Core Obligations (other than travel and travel-related
expenses of persons performing the Development Services), are included in the
Core Fees and shall not be reimbursed by THC unless agreed upon by THC.  If agreed upon pursuant to a PSS or Service
Request executed by THC and PSC, THC shall pay or reimburse PSC for the
reasonable and actual documented expenses, including travel and travel-related
expenses, incurred by PSC in connection with its performance of the Special
Services or the Development Services provided that such expenses are incurred
in accordance with PSC’s policy for such expenses as set forth in Exhibit 13
[PSC Expense Policy] (with
receipts for all such expenses of $25.00 or more) or otherwise approved in
writing by the Tenet Account Executive. 
Tenet shall have no obligation to reimburse PSC for any such expenses
which are either

 69
 

not
properly approved in advance or which are not invoiced within [**] days of the
later of the date incurred or invoiced by the third party to PSC.

21.07       Adjustment to Fees.  Except as otherwise agreed upon by the
Parties and subject to this Section 21.07, PSC may not increase the Fees
or the Tier 2 Offshore Fee Adjustments during the Term.  PSC may increase the Fees and the Tier 2
Offshore Fee Adjustments in accordance with the following time frames and the
following formulas:

(1)           On July 1, 2007, PSC may increase the
following by [**] percent of the percentage point increase of the CPI published
in June of 2007 over the CPI published in June of 2006 (e.g., if the
June 2006 CPI = [**] and the June 2007 CPI = [**], such fees and rates may be
increased by [**]: (a) Core Facility Fees, (b) the Special Services Hourly
Rates, (c) any monthly rates for Special Services (other than monthly rates for
hardware expenses that are built into such monthly rates), and (d) fixed fees
(other than fixed fees for hardware expenses that are built into such fixed
fees) and, which respect to clause (d), for which the applicable PSS or Service
Request specifies the allowance of an increase.

(2)           On January 1, 2008, PSC may increase
the Core Enterprise Annual Fees and the Tier 2 Offshore Fee Adjustment by [**]
percent of the percentage point increase of the Current Index over the Base
Index (e.g., if the Base Index = [**] and the Current Index = [**], the
Fees and the Tier 2 Offshore Fee Adjustments may be increased by [**].

(3)           Commencing as of January 1, 2009, and
not more than once annually thereafter, PSC may:

(a)           Increase the Core Enterprise Annual
Fees and the Tier 2 Offshore Fee Adjustment by [**] percent of the percentage
point increase of the Current Index over the Base Index (e.g., if the
Base Index = [**] and the Current Index = [**], the Fees and the Tier 2
Offshore Fee Adjustments may be increased by [**]; and

(b)           Increase the following by [**]
percent of the percentage point increase of the Current Index over the Base
Index (e.g., if the Base Index = [**] and the Current Index = [**], such
fees and rates may be increased by [**]: (i) Core Facility Fees, (ii) the
Special Services Hourly Rates, (iii) any monthly rates for Special Services
(other than monthly rates for hardware expenses that are built into such
monthly rates), and (iv) fixed fees (other than fixed fees for hardware
expenses that are built into such fixed fees) and, which respect to clause
(iv), for which the applicable PSS or Service Request specifies the allowance
of an increase.

(4)           In the event that the Bureau of Labor
Statistics ceases to publish the CPI or substantially changes its content or
format, THC and PSC shall

 70
 

substitute
therefore another comparable measure published by an agreed-upon source;
provided, however, that if such change is to redefine the base year for the CPI
from 1982-1984 to some other year, the Parties will continue to use the CPI but
shall, if necessary, convert either the Base Index or the Current Index to the
same basis as the other by multiplying such index by the appropriate conversion
factor.

21.08       Unused Credits.  Any unused credits against future payments
issued to THC by PSC pursuant to this Agreement shall be paid to THC by PSC
within 30 days of the expiration or termination of this Agreement for any
reason.

21.09       [**]

21.10       Shared Cost Savings.  In the event PSC proposes any change in the
manner the Services are provided that requires THC’s prior consent, including
any substitutions for any Third Party Software, and THC agrees to such change,
and such change results in an out-of-pocket savings in cost to PSC (“Savings”), such Savings shall be
allocated as may be agreed by the Parties on a case by case basis.  THC shall be entitled to apply its portion of
such Savings as a credit against the Fees or, at THC’s election, THC may apply
an amount equal to 100 percent of such Savings against any Special Service;
provided, however, that PSC provides such Special Service at competitive prices
and comparable quality relative to what is available in the marketplace for
services comparable to such Special Service. 
PSC shall be responsible for the costs associated with the
implementation of the change.

ARTICLE 22.                                                  PAYMENT
SCHEDULE.

22.01       Monthly Invoice. PSC shall provide
THC with an invoice no earlier than the first day and no later than the tenth
day of each month that will include (1) charges for that month’s (A) Core
Enterprise Monthly Fees (reduced by a credit against that month’s Core
Enterprise Monthly Fee in the amount of the Development Baseline Monthly Hours
for such month multiplied by the then-current Onshore Special Services Hourly
Rate), (B) Core Facility Monthly Fees, and (C) Special Services Fees for any
Special Services charged on a fixed fee basis, and (2) charges for any Special
Services or other Services charged on a time and materials basis and performed
by PSC during the month [**].  The
invoice shall be payable within 30 days after receipt by THC.  PSC shall submit all invoices to THC,
including invoices for Services provided to Tenet’s Affiliates, and PSC shall
not invoice such Affiliates directly.

22.02    Detailed
Invoices.
Upon THC’s request, PSC shall provide a monthly invoice with a level of detail
similar to that contained in the monthly invoice provided by PSC to Tenet under
the 2001 Agreement or as otherwise reasonably requested by THC.

 

 71

22.03       Time of Payment. Any sum due PSC
pursuant to this Agreement for which payment is not otherwise specified shall
be due and payable 30 days after receipt by THC of an invoice from PSC.  Unless otherwise agreed, PSC may charge Tenet
only for services performed and costs incurred within [**] days before the
applicable invoice date.  All contested
invoice items must be identified to PSC within 90 days of receipt of a valid
invoice (including all supporting documentation required to determine amounts
due), or payment by THC will constitute acceptance of the accuracy of the
invoice subject only to THC’s audit rights pursuant to Article 24.  In the event that THC determines within 90
days after receipt of a valid invoice (including all supporting documentation
required to determine amounts due) that it has made any overpayment or paid any
charges not in fact due, THC shall be entitled to an immediate refund upon
notice to PSC of such overpayment or, at THC’s option, to credit the amount of
such overpayment against any amounts payable by THC to PSC hereunder, provided
that in the event of a dispute over any such credit, the disputed amount shall
be deposited into escrow on the same terms applicable to disputed payments
pursuant to Section 22.04.  All
amounts not paid or deposited into escrow by THC pursuant to Section 22.04
when due, and all amounts of any overpayments recoverable by THC as provided
above that are not repaid, credited or paid into escrow promptly upon notice
thereof, shall bear annualized interest thereafter at [**], but not to exceed
any maximum interest rate specified by applicable law.

22.04       Disputed Fees or Credits.  In the event either Party in good faith
disputes the accuracy or applicability of any Fee or credit, the Party shall
notify the other Party of the nature and support for such dispute within a
reasonable period after becoming aware of, and performing an investigation of,
the disputed matter.  The Party
contesting its obligations to pay a Fee or to grant a credit shall deposit any
disputed amount that cannot be resolved by the Management Committee which
exceeds $[**] in an interest-bearing escrow account in the United States bank
or depository specified by the other Party. 
In the event of a dispute pursuant to which a Party in good faith
believes it is entitled to withhold payment, (1) such Party shall continue to
pay the undisputed amounts and pay the disputed amounts into escrow in
accordance with this Section 22.04 and (2) the other Party shall
continue to provide the Services or otherwise perform its obligations.  Upon resolution of the dispute, the Parties
shall allocate the money in the escrow account and any fees relating to opening
and maintaining the escrow account, plus any interest earned on such money,
according to the resolution of the dispute. 
No failure by either Party to identify a contested Fee or credit prior
to payment of the invoiced amount shall limit or waive any of such Party’s
rights or remedies with respect to such Fees or credits, including such Party’s
right to withhold such disputed amounts from subsequent Fees or credits due to
the other Party and pay such sums into an escrow account as described in this Section
22.04.  Unpaid fees and credits that
are in 

 72
 

dispute,
and placed in escrow in accordance with this Section 22.04 shall not be
considered a basis for monetary or other default under this Agreement.

ARTICLE 23.                                                  TAXES.

23.01       PSC shall be responsible for any
applicable sales, use or personal property taxes attributable to periods on or
after the Effective Date (but prior to the expiration or termination of this
Agreement) based upon or measured by PSC’s cost in acquiring (other than from
Tenet) materials, supplies or services furnished or used by PSC in performing
or furnishing the Services, including all personal property and use taxes due
on the PSC Machines and the PSC Software provided by PSC.

23.02       Except as provided in Section 23.05,
in the event that a local, state or federal sales, use, excise, gross receipts,
tariff, value-added, duties, consumption, customs or services tax is based on
or measured by PSC’s charges to THC under this Agreement or on the provision of
the Services to Tenet under this Agreement (“Sales Taxes”), however levied or assessed, is imposed by a
taxing authority within the United States (other than any such Sales Taxes
imposed by a taxing authority within the United States due to the
implementation of the Tier 1 Offshore Services or the Tier 2 Offshore Services
in the initial PSC Service Locations in India pursuant to Article 13 (i.e.,
such Sales Taxes would not have been assessed but for such implementation in
such PSC Service Locations in India)), THC shall be responsible for and pay the
amount of any such Sales Taxes.

23.03       In the event that Sales Taxes, however
levied or assessed, are imposed by a taxing authority within the United States
due to the implementation of the Tier 1 Offshore Services in the initial PSC
Service Locations in India and Mexico or the Tier 2 Offshore Services in the
initial PSC Service Locations in India pursuant to Article 13 (i.e.,
such Sales Taxes would not have been assessed but for such implementation in
such PSC Service Locations in India or Mexico), [**] shall be responsible for
and pay the amount of any such Sales Taxes.

23.04       In the event that Sales Taxes, however
levied or assessed, are imposed by a taxing authority within India or Mexico
due to the implementation of the Tier 1 Offshore Services in the initial PSC
Service Location in India and Mexico or the Tier 2 Offshore Services in the
initial PSC Service Locations in India pursuant to Article 13, [**]
shall be responsible for and pay the amount of any such Sales Taxes.

23.05       Prior to relocating or rerouting the
delivery of any of the Services to, from or through a location other than the
Service Location then-currently used to provide the Services, the Parties will
negotiate in good faith and mutually agree upon which Party will be responsible
for the amount of any increase 

 73
 

in
any Sales Taxes, however levied or assessed, resulting from such relocation or
rerouting; provided, however (1) if any such relocating or rerouting is for PSC’s
convenience (unless otherwise agreed upon by the Parties), PSC shall be
responsible for and pay the amount of any such increases; and (2) for purposes
of clarity, [**] shall be responsible in accordance with Section 23.03
or Section 23.04, as applicable, for the Sales Taxes referenced in such
sections due to the relocation or rerouting of the Tier 1 Offshore Services to
the initial PSC Service Locations in India and Mexico or the Tier 2 Offshore
Services to the initial PSC Service Locations in India pursuant to Article
13.

23.06       As between PSC and Tenet, THC shall be
responsible for paying all personal property, sales or use taxes due on or with
respect to Tenet Machines and Tenet Software or any another machines or
software owned, leased or licensed by Tenet.

23.07       As between PSC and Tenet, THC shall bear
sole responsibility for all ad valorem and other real property-related levies
on the real property owned or leased by Tenet. 
PSC shall bear sole responsibility for all ad valorem and other real
property-related levies on the real property owned or leased by PSC or its
Affiliates.

23.08       THC and PSC shall cooperate to segregate
the fees payable under this Agreement into the following separate payment
streams:  (1) those for taxable Services
to Tenet, (2) those for nontaxable Services to Tenet, (3) those for which a
sales, use or similar tax has already been paid and (4) those for which PSC
functions merely as a paying agent for Tenet in receiving goods, supplies or
services (including leasing and licensing arrangements) that otherwise are
nontaxable or have previously been subject to tax.  In addition, THC and PSC shall cooperate with
each other to accurately determine each Party’s tax liability and to minimize
such liability to the extent legally permissible.  THC and PSC shall provide and make available
to the other any resale certificates, information regarding out-of-state sales
or use of equipment, materials or services, and any other exemption
certificates or information reasonably requested by the other Party.

23.09       On or prior to the Effective Date, THC
shall execute and deliver to PSC a Texas multi-state tax exemption certificate
in form and substance satisfactory to THC and PSC, and shall remit directly to
Texas sales and use tax, if any, due on the charges to THC under this
Agreement.

ARTICLE 24.                                                  AUDIT
RIGHTS/REGULATORY COMPLIANCE.

24.01       Processing.

(1)           Upon 10-days’ notice from THC, PSC
shall provide, and shall cause its subcontractors to provide, such auditors and
inspectors, as THC may from 

 74
 

time
to time designate, with reasonable access to the Service Locations and the
Software and Machines for the purpose of performing audits or inspections of
the Services and the business of Tenet (including data processing, application
development, the procurement of new systems, disaster recovery, maintenance and
support, telecommunications and the systems and physical environments on or in
which the Services are performed); provided, however, that such auditors or
inspectors have signed a nondisclosure agreement with PSC in a form reasonably
acceptable to PSC.  PSC shall provide,
and shall cause its subcontractors to provide, such auditors and inspectors any
assistance that they may reasonably require and THC shall pay PSC for such
assistance at the hourly rate for Special Services in connection with any such
audit or inspection.  Notwithstanding the
foregoing, nothing in this Section 24.01 shall require PSC to provide any
of its direct competitors in health care facilities management, if such
competitor may be performing such audit, with access to PSC’s trade secrets or
proprietary information other than as may be contained in PSC Systems being
used by PSC for Tenet.

(2)           If any audit by an auditor designated
by THC or a regulatory authority results in PSC being notified that it or its
subcontractors are not in compliance with any law, regulation, audit
requirement or generally accepted accounting principle relating to the
Services, PSC shall, and shall cause its subcontractors to, take actions to
comply with such audit. THC shall bear the expense of any such compliance that
is (a) required by a law, regulation or other audit requirement relating to
Tenet’s business or (b) necessary due to Tenet’s noncompliance with any law,
regulation or audit requirement imposed on Tenet.  PSC shall bear the expense of any such
response that is (i) required by a law, regulation or other audit requirement
relating solely to PSC’s business or (ii) necessary due to PSC’s noncompliance
with any law, regulation or audit requirement imposed on PSC.

24.02       Fees. PSC shall provide, and shall
cause its subcontractors to provide, to THC and its designees access to such
financial records and supporting documentation related to the Fees, and any
other fees, costs and expenses charged directly to THC under this Agreement, as
may be reasonably requested by THC.  Upon
reasonable notice from THC, THC may audit the Fees, and any other fees, costs
and expenses charged directly to THC to determine that such Fees, and any other
fees, costs or expenses are accurate and in accordance with this Agreement.

24.03       HHS Audit.  If required by applicable law, PSC agrees
that until four years after the termination or expiration of this Agreement,
PSC will make available to the Secretary of the United States Department of
Health and Human Services and the United States Comptroller General, and their
duly authorized representatives, this Agreement and all pertinent books, documents
and records necessary to certify the nature and extent of the costs of the
goods and services provided to Tenet under this Agreement and likewise require
the same of its 

 75
 

subcontractors
and outsource providers under this Agreement. 
The requirements of this Section 24.03 do not obligate PSC to
maintain records in any particular format. 
No attorney-client, accountant-client or other legal or equitable
privilege shall be deemed to have been waived by the Parties by virtue of this
provision.

24.04       Unauthorized Access.

(1)           In the event PSC, its subcontractors
or agents discover or are notified of a material breach or potential material
breach of security on a system, LAN or telecommunications network which
contains, processes or transmits Tenet’s Confidential Information, PSC shall
immediately: (a) notify such technology auditors as THC may designate in
writing to PSC during the Term; (b) investigate the breach or potential breach;
and, (c) provide THC and its designees with reasonable access to all resources
and information in PSC’s possession as may be necessary to investigate the
breach or potential breach.  THC shall
have the right to conduct and control any investigation relating to such breach
or potential breach that it determines is appropriate.

(2)           In the event PSC, its employees,
subcontractors or agents may have been, or are likely to be, involved in
unauthorized or illegal activities to obtain money or information from or
through Tenet, its clients or suppliers or in any way damage (or expose to
damage) Tenet, its clients or suppliers, PSC shall immediately:  (a) notify such technology auditors as THC
may designate in writing to PSC during the Term; (b) investigate such
activities; and, (c) provide THC and its designees with reasonable access to
all resources and information in PSC’s possession as may be necessary to
investigate such activities.  THC shall
have the right to conduct and control any investigation relating to such
activities that it determines is appropriate.

24.05       Record Retention.  Each of Tenet and PSC, as part of the Core
Obligations, shall, subject to Section 24.03, (1) retain records and
supporting documentation sufficient to document the Services and the Fees paid
or payable by THC under this Agreement in accordance with such Party’s record
and document retention policies and procedures and (2) upon notice from the
other Party, provide such Party and its auditors or inspectors with reasonable
access to such records and documentation.

24.06       Access and Reports.  As part of the Core Obligations, PSC shall
provide to THC and its auditors or inspectors who have signed a nondisclosure
agreement with PSC in a form reasonably acceptable to PSC access to (1) PSC’s
and its subcontractors’ staff, (2) records and supporting documentation (including
program source code to the extent permitted by law or under the applicable
third party agreements) relating to the Services and the Fees, (3) the Software
and (4) the Service Locations or other facilities, as may be necessary for THC
or its auditors or 

 76
 

inspectors
to perform the audits described in Section 24.01 and Section 24.02.  As part of the Core Obligations, PSC shall
provide to THC periodic status reports in accordance with the audit procedures
described in Exhibit 12 regarding PSC’s resolution of any audit-related
compliance activity for which PSC is responsible.

24.07       Audit Software. As a Special
Service, PSC shall, at THC’s request and to the extent permitted under the
applicable Third Party Agreements, operate and maintain such audit software as
THC or its auditors or inspectors may provide to PSC from time to time during
the Term.

24.08       Facilities.  To the extent reasonably available, PSC shall
provide to THC and its designees on PSC’s premises (or if the audit is being
performed of a subcontractor, the subcontractor’s premises if necessary) space,
office furnishings (including lockable cabinets), telephone and facsimile
service, utilities and office-related equipment and duplicating services as THC
or such auditors and inspectors may reasonably require to perform the audits
described in this Article 24. 
Such facilities and related assistance shall be provided as part of the
Core Obligations.

24.09       Third Party Audit.  PSC shall, on an annual basis in respect of
each Contract Year during the Term, execute [**] a Type II SAS70 audit (third
party review).  The written results of
such audit will be provided to THC by or on behalf of PSC within 30 days
following the date of issuance of such final results to PSC.

24.10       HIPAA Compliance.

(1)           HIPAA Privacy Compliance. If, when
and to the extent, and for so long as, required by HIPAA, PSC shall, as part of
Core Obligations, comply with the following provisions related to HIPAA and the
use and disclosure of Protected Health Information and Electronic Protected
Health Information thereunder:

(a)           Use of Protected Health
Information.  PSC shall only use
Protected Health Information for the purpose of performing PSC’s obligations
under the Agreement and: (i) as permitted under the Agreement, as amended; (ii)
as permitted under any notices provided by THC pursuant to Section 24.10(4);
(iii) as Required by Law; (iv) for the proper management and administration of
PSC or to carry out the legal responsibilities of PSC and (v) for Data
Aggregation purposes involving Health Care Operations, Reports as required by Section
19.04, or as otherwise requested by THC. 
Further, nothing in this Agreement, as amended, shall be construed as
authorizing PSC to use Protected Health Information in any manner that would
constitute a violation of the Federal Privacy Regulations if the Protected
Health Information were used in such a manner by Tenet.

 77
 

(b)           Disclosure of Protected Health
Information.

(i)            Disclosure to PSC Workforce.  PSC may disclose Protected Health Information
to members of its “workforce” (as such term is defined under HIPAA at 45 CFR
160.103, as amended from time to time), solely for the purposes of performing
its obligations under this Agreement and for those purposes set forth in Section
24.10(1)(a) hereof and as necessary for PSC’s proper internal management
and administration.  PSC shall take
appropriate disciplinary action against any member of PSC’s workforce who uses
or discloses Protected Health Information in violation of this Section
24.10(1).

(ii)           Disclosure to PSC Project
Personnel and PSC Company Contractors. If PSC, pursuant to Section 14.06,
carries out any of its duties under this Agreement through PSC Project
Personnel (other than PSC Project Persons who are employees of PSC or a PSC
Affiliate) or a PSC Company Contractor which duties, by their nature, involve
the use of, custody of, disclosure of, creation of, or afford access to
Protected Health Information, there shall be a written contract for such work
and the contract shall contain clauses substantially identical, in all material
respects, to the restrictions and conditions set forth in Sections 24.10(1),
(2) and (3).  In addition,
PSC hereby expressly acknowledges and agrees that, notwithstanding anything in
this Agreement to the contrary, PSC shall be liable for any use or disclosure
of Protected Health Information by PSC Project Personnel and PSC Company
Contractors in violation of the provisions of this Section 24.10.

(iii)          Disclosure of Protected Health
Information by PSC for Management and Administration.  PSC may disclose Protected Health Information
for the proper management and administration of PSC or to carry out the legal
responsibilities of PSC if (i) the disclosure is Required by Law; or (ii) PSC
obtains reasonable written assurances from the person to whom the information
is disclosed that it will remain confidential and used or further disclosed
only as Required by Law or for the purpose for which it was disclosed to the
person, and the person notifies PSC of any instances of which it is aware in
which the confidentiality of the information has been breached.  PSC will provide THC with prompt written
notice of such disclosures.

(iv)          Disclosure to Third Parties.  PSC shall not disclose Protected Health
Information to any other person or entity (except as provided in Sections
24.10(1)(b)(i), (ii) and (iii) hereof), except as permitted
by this Agreement, Required by Law or as approved by THC; provided, however,
that PSC shall promptly notify THC of any disclosure of Protected Health Information
made by PSC to a third party that was Required by Law other than such
disclosures made at the request of Tenet.

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(c)           Minimum Necessary and Restrictions
or Limitations on Use and Disclosure.

(i)            PSC (and PSC Project Personnel and
PSC Company Contractors) shall only request, use and disclose Protected Health
Information in accordance with Tenet’s minimum necessary policies and
procedures, which have been made available to PSC in writing or on-line, or as
directed by THC, if no minimum necessary policy and procedure is
applicable.  Notwithstanding the
foregoing, if PSC’s compliance with such minimum necessary policies and
procedures or directions delays, interferes with or precludes PSC from
performing its obligations under this Agreement, PSC shall be excused from
liability for the performance of PSC’s obligations until such time as PSC and
THC mutually agree upon a modification to either: (A) the minimum necessary
policy and procedure or direction such that they no longer delay, interfere
with or preclude PSC from performing its obligations under this Agreement or
(B) PSC’s obligation under this Agreement such that the minimum necessary
policy and procedures or directions no longer delay, interfere with or preclude
PSC from performing its obligations under this Agreement; provided however, PSC
shall only be excused from performing its obligations under this Agreement :
(1) to the extent such non-performance directly results from Tenet’s minimum
necessary policies and procedures or directions and (2) to the extent
practicable, PSC has provided THC with advanced written notice specifying in
detail the reasons that PSC’s compliance with Tenet’s minimum necessary
policies and procedures or directions would cause any such delay, interfere
with or preclude PSC from performing its obligations under this Agreement.  If providing advance notice is not
practicable, PSC will provide such notice as soon as it becomes aware that PSC’s
compliance with Tenet’s minimum necessary policies and procedures or directions
would cause any such delay, interfere with or preclude PSC from performing its
obligations under this Agreement.

(ii)           To the extent any changes,
limitations and/or restrictions referenced in Subsections 24.10(4)(b) – (d)
limit the use and/or disclosure of Protected Health Information by PSC, PSC
Project Personnel and PSC Company Contractors hereunder, PSC agrees to comply
with such changes, limitations and/or restrictions.  Notwithstanding the foregoing, if PSC’s
compliance with such changes, limitations and/or restrictions delays,
interferes with or precludes PSC from performing its obligations under this
Agreement, PSC shall be relieved of liability from the performance of PSC’s
obligations: (A) to the extent such non-performance directly results from such
changes, limitations and/or restrictions and (B) to the extent practicable, PSC
has provided THC with advanced written notice specifying in detail the reasons
that PSC’s compliance with such changes, limitations and/or restrictions would
cause any such delay, interfere with or preclude PSC from performing its
obligations under this Agreement.  If
providing advance notice is not practicable, PSC will provide such notice as
soon as it becomes 

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aware
that PSC’s compliance with Tenet’s minimum necessary policies and procedures or
directions would cause any such delay, interfere with or preclude PSC from
performing its obligations under this Agreement.

(d)           Safeguards.

(i)            PSC shall implement appropriate
safeguards in PSC’s facilities to the extent necessary to prevent the use or
disclosure of Protected Health Information other than as provided for by this
Agreement.  When providing any Services
at Tenet’s facilities, PSC shall comply with THC’s or the Tenet Affiliate’s
standard site-specific safeguards to prevent the use or disclosure of Protected
Health Information generally applicable to the employees and contractors of THC
or the THC Affiliate working at the applicable site, provided THC or the THC
Affiliate has given PSC written notice of such safeguards.  Notwithstanding the foregoing, PSC shall not
be financially responsible as part of Core Obligations for any upgrades,
replacements or modifications to any Tenet Machines or Tenet Software located
at a PSC facility to the extent such upgrades, replacements or modifications
are required in order for PSC to implement such safeguards at its facilities,
except to the extent PSC is otherwise obligated under the other terms of this
Agreement to be financially responsible for such upgrades, replacements or
modifications as part of Core Obligations.

(ii)           In addition to PSC’s obligations with
respect to Tenet Data contained in Article 18, PSC shall not disclose
de-identified Protected Health Information unless authorized in writing by
THC.  PSC may use Protected Health Information
that it has de-identified, or that has been de-identified by a subcontractor of
PSC, in each case, in accordance with 45 CFR 164.514(b)(2)(i), as amended from
time to time, as necessary, solely to perform its obligations under this
Agreement (e.g., use de-identified Protected Health Information for
testing and model office maintenance in support of Tenet’s day-to-day
operations), unless otherwise instructed by THC in writing.   Upon receipt of such notice, PSC and THC
agree to meet and discuss any terms under which PSC may use de-identified
Protected Health Information to perform its obligations hereunder; provided,
however, if THC prohibits PSC from using de-identified Protected Health
Information, to the extent such restriction interferes with PSC’s ability to
perform any of its obligations under this Agreement, PSC shall be relieved from
liability for such non-performance.  For
purposes of this Agreement, Protected Health Information shall be deemed “de-identified”
only if it meets the criteria set forth under HIPAA at 45 CFR 164.514(b)(2), as
amended from time to time.

(e)           Reporting of Unauthorized Uses
and/or Disclosures.  If PSC
(including PSC Project Personnel and PSC Company Contractors, if any) becomes
aware of any unauthorized use and/or unauthorized disclosure of Protected
Health Information by its workforce, PSC Project Personnel or PSC Company 

 80
 

Contractors,
PSC shall report information specifying in reasonable detail the patients
affected by, extent and cause of the unauthorized use and/or disclosure to THC
and the affected THC Affiliate in a timeframe commensurate with the severity of
the unauthorized use and/or disclosure and nature of the Protected Health
Information but in no event more than three (3) business days after PSC becomes
aware of the unauthorized use and/or disclosure.

(f)            Disclosure to U.S. Department
of Health and Human Services.  Only to
the extent required by applicable law, PSC shall make its internal practices,
books, and records relating to the use and disclosure of a patient’s Protected
Health Information available to the United States Secretary of Health and Human
Services to the extent required for determining Tenet’s compliance with subpart
E of 45 CFR Part 164.  Notwithstanding
the foregoing, no attorney-client, accountant-client, or other legal privilege
shall be deemed waived by PSC, THC or their Affiliates by virtue of this
Section.  If PSC receives such a request
from the United States Secretary of Health and Human Services or its designees,
PSC shall immediately notify THC.

(g)           Access to Protected Health
Information and Designated Record Sets. 
Upon THC’s request, PSC shall in accordance with Sections 19.03
and 25.06 provide copies to THC of all or a portion of Protected Health
Information and Designated Records Sets then-currently in PSC’s possession,
custody or control (including Protected Health Information and Designated
Records Sets, if any, in the possession, custody or control of PSC Project
Personnel or PSC Company Contractors) in order for Tenet to: (i) make the
Protected Health Information available in accordance with 45 CFR Part 164.524;
and (ii) amend the Protected Health Information in accordance with 45 CFR Part
164.526.  In the event an individual
requests access to, or an amendment to, Protected Health Information directly
from PSC, PSC shall promptly forward such request to THC.  Any denials of access to, or amendment of,
the Protected Health Information requested shall be the responsibility of THC.  Notwithstanding the foregoing, no
attorney-client, accountant-client, or other legal privilege shall be deemed
waived by PSC, THC or their Affiliates by virtue of this Section.

(h)           Accounting of Disclosures.  Within ten (10) days of PSC’s receipt of
written notice by THC of a request for an accounting of disclosures of
Protected Health Information made by PSC, PSC Project Personnel or PSC Company
Contractors regarding an individual during the six (6) years prior to the date
on which the accounting was requested by the individual, PSC shall make available
to THC the information relating to disclosures required to provide an
accounting of disclosures to enable Tenet to fulfill its obligations under
Section 164.528 of the Federal Privacy Regulations.  In accordance with the Federal Privacy
Regulations, PSC shall not include in any such accounting those disclosures
that are exempt from an accounting pursuant to Section 164.528(a)(1) of the
Federal 

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Privacy
Regulations, which include on the Effective Date disclosures made: (i) to carry
out treatment, payment or health care operations, as provided in Section
164.502 of the Federal Privacy Regulations; (ii) to individuals of Protected
Health Information about them as provided in Section 164.502 of the Federal
Privacy Regulations; (iii) incident to a use or disclosure otherwise permitted
or required by the Federal Privacy Regulations as provided in Section 164.502
of the Federal Privacy Regulations; (iv) pursuant to an authorization as
provided in Section 164.508 of the Federal Privacy Regulations; (v) to persons
involved in the individual’s care or other notification purposes as provided in
Section 164.510 of the Federal Privacy Regulations; (vi) for national security
or intelligence purposes as provided in Section 164.512(k)(2) of the Federal
Privacy Regulations; or (vii) to correctional institutions or law enforcement
officials as provided in Section 164.512(k)(5) of the Federal Privacy
Regulations; (viii) as part of a limited data set in accordance with Section
164.514(e) of the Federal Privacy Regulations; or (ix) that occurred prior to
April 14, 2003.  PSC shall implement a
process that allows for an accounting of such disclosures to be collected and
maintained by PSC, PSC Project Personnel and PSC Company Contractors; provided,
however PSC shall not be required to provide an accounting, or collect and
maintain information, (A) with respect to disclosures made by PSC, PSC Project
Personnel or PSC Company Contractors in PSC’s provision of Services or at the
request of Tenet, for which THC agrees in writing that THC, a THC Affiliate or
another third party shall collect and maintain such information and provide the
accounting, and (B) with respect to disclosures, if any, that PSC makes in the
performance of the Services under this Agreement or at the request of Tenet,
THC shall be responsible for ensuring that the Tenet Machines, Tenet Software,
tools or other information technology owned, leased or licensed by or on behalf
of Tenet contain the functionality necessary to track and document such
disclosures, except to the extent PSC is otherwise obligated under the other
terms of this Agreement to be financially responsible for the machines,
software, tools or other information technology necessary to collect and
maintain such information as part of Core Obligations.  At a minimum, such information shall include
the information required by Section 164.528(b) of the Federal Privacy
Regulations.  In the event that the
request for an accounting is delivered directly to PSC, PSC Project Personnel
or PSC Company Contractors, PSC shall, within five (5) days following receipt
by PSC of a request, forward it to THC in writing.  It shall be THC’s responsibility to prepare
and deliver any such accounting requested.

(i)            Return/Destruction of Protected
Health Information.  Upon termination
or expiration of this Agreement, PSC, and any Project Personnel or PSC Company
Contractors, if any, which have received Protected Health Information
hereunder, shall, if feasible, in accordance with Sections 19.03 and 25.06,
return or destroy (destroy only if requested by THC) all Protected Health
Information (including any copies thereof) provided by THC or any of its
Affiliates 

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or
created on behalf of THC or any of its Affiliates pursuant to this
Agreement.  PSC acknowledges and agrees
that neither PSC nor any PSC Project Personnel or PSC Company Contractors may
retain copies of any Protected Health Information that is destroyed pursuant to
this Section 24.10(1)(i).  If such
return or destruction is not feasible, the Parties agree that the requirements
of this Section 24.10 shall survive the expiration or earlier
termination of the Agreement and that PSC shall limit all further uses and
disclosures of such Protected Health Information to those purposes that make
the return or destruction of such information not feasible until all such
Protected Health Information has been returned or destroyed pursuant to this Section
24.10(1)(i).  Upon request, as set
forth in Section 25.06 of this Agreement, PSC and any applicable PSC
Company Contractors shall certify in writing their compliance with Section
24.10.

(j)            Duty to Mitigate.  PSC agrees to cooperate with THC in
mitigating, to the extent practicable, any harmful effect that becomes known to
PSC as a result of a use or disclosure of Protected Health Information by PSC,
PSC Project Personnel or PSC Company Contractors in violation of PSC’s
obligations in this Section 24.10.

(2)           Federal Transaction Regulation.  In addition to PSC’s obligations under Sections
3.07 and 3.10 hereof, PSC shall perform the following as a part of
Core Obligations:

(A)          To the extent this Agreement involves
the exchange of information using Electronic Media in a transaction as defined
in 45 CFR Part 160.103 (the “Transactions”),
PSC and THC acknowledge that nothing in this Agreement is intended to violate
the requirements contained in 45 CFR Part 162.915, as amended from time to
time.

(3)           Federal Security Regulations
Obligations.  In addition to PSC’s
obligations under Sections 3.07 and 3.10, by the compliance date
for the Federal Security Regulations, PSC shall:

(a)           Implement administrative, physical
and technical safeguards with respect to PSC’s facilities, PSC Machines and PSC
Proprietary Software that reasonably and appropriately protect the
confidentiality, integrity, and availability of Electronic Protected Health
Information as required by the Federal Security Regulations; provided, however,
with respect to administrative, physical, and technical safeguards that are
deemed “addressable” under the Federal Security Regulations, PSC will implement
solutions for such administrative, physical and technical safeguards that THC
deems are reasonable and appropriate within THC’s reasonable discretion.  When providing any Services at Tenet’s
facilities, or using Tenet Machines and Tenet Software, PSC shall comply with
THC’s or the THC Affiliate’s standard administrative, physical and technical 

 83
 

safeguards
to protect the confidentiality, integrity and availability of Electronic
Protected Health Information generally applicable to the employees and
contractors of THC or the THC Affiliate working at the applicable site, or
using the applicable machines or software, provided THC or the THC Affiliate
has given PSC written notice of such safeguards.  Notwithstanding the foregoing, PSC shall not
be financially responsible as part of the Core Obligations for any upgrades,
replacements or modifications to any Tenet Machines or Tenet Software located
at a PSC facility to the extent such upgrades, replacements or modifications
are required in order for PSC to implement such standards at its facilities,
except to the extent PSC is otherwise obligated under the other terms of this
Agreement to be financially responsible for such upgrades, replacements or
modifications as part of the Core Obligations.

(b)           Ensure that any PSC Project Person or
PSC Company Contractor to whom PSC provides Electronic Protected Health
Information is obligated to implement reasonable and appropriate safeguards to
protect Electronic Protected Health Information, and

(c)           Report to THC any Security Incident
of which PSC becomes aware in a timeframe commensurate with the severity of the
Security Incident but in no event more than three (3) business days after PSC
becomes aware of the Security Incident. 
Notwithstanding the foregoing, once the PSC Client Executive becomes
aware of any Security Incident, PSC shall notify THC of the Security Incident
in a timeframe commensurate with the severity of the Security Incident but in
no event more than [**] after the PSC Client Executive becomes aware of the
Security Incident.

(d)           To the extent THC deems it necessary
in order for Tenet to comply with its obligations pursuant to Section
164.308(a)(8) of the Federal Security Regulations relating to an evaluation of
security practices, THC or its authorized agents or contractors, may, at THC’s
expense, examine the facilities, systems, procedures and records of PSC and any
PSC Company Contractors who have been given access to Protected Health
Information as may be necessary for such agents or contractors to evaluate the
extent to which PSC or such PSC Company Contractors are complying with PSC’s
obligations under Subsection 24.10(3); provided, however, that such agents or
contractors have signed a nondisclosure agreement with PSC in a form reasonably
acceptable to PSC.  PSC shall provide,
and shall cause the PSC Company Contractors to provide, THC or such agents or
contractors any assistance that they may reasonably require in conducting such
evaluation and THC shall pay PSC for such assistance on a time and materials
basis at the then-current applicable Special Services Hourly Rate.  Notwithstanding the foregoing, nothing in
this Section shall require PSC to provide any of its direct competitors in
health care facilities management, if such competitor may be performing such
evaluation, with access to the trade secrets or proprietary information of PSC
or its Affiliates other than as may be contained in PSC Systems being used by
PSC for Tenet.

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(e)           When providing any Services at the
facilities of THC or any of its Affiliates, PSC shall comply with THC’s or the
THC Affiliate’s standard site-specific administrative procedures, physical
safeguards and technical security mechanisms to protect the integrity, privacy
and availability of Protected Health Information generally applicable to the
employees and contractors of THC or the THC Affiliate working at the applicable
site, provided THC or the THC Affiliate has given PSC written notice of such
procedures, safeguards and mechanisms.

(f)            At THC’s request, PSC shall, either
as a part of Core Obligations through the Change Control Procedures or as a
Special Service pursuant to Article 8, implement new administrative
procedures, physical safeguards, technical security services and technical
security mechanisms at the facilities of THC and its Affiliates to protect the
integrity, privacy and availability of Protected Health Information.

(g)           Maintain a comprehensive written
information security program that includes administrative, technical and
physical safeguards appropriate to and consistent with PSC’s obligations under
this Section 24.10(3).  Upon THC’s
request, PSC shall promptly provide THC with copies of: (i) the privacy and
security practices, policies and procedures relevant to, and established by PSC
or the PSC Company Contractors who have been given access to Protected Health
Information pursuant to, PSC’s obligations under this Section 24.10(3)
and (ii) any material changes to the foregoing policies, practices and
procedures.

(4)           Obligations of THC.  THC hereby agrees:

(a)           To obtain and maintain such
consent(s), authorization(s), or permission(s), if any, as may be necessary or
required under HIPAA, to permit THC or Tenet Affiliates to disclose Protected
Health Information to PSC in order for PSC to use and disclose Protected Health
Information as required or permitted in this Agreement.

(b)           To promptly inform PSC as soon as THC’s
Chief Privacy Officer or Chief Information Officer becomes aware of any
modification(s) to, restriction(s) on, defect(s) in, or revocation or other
termination of effectiveness of, any consent, authorization or permission
obtained by THC or a THC Affiliate pursuant to which THC or a THC Affiliate has
disclosed Protected Health Information to PSC to use and disclose as required
or permitted hereunder, to the extent such changes affect PSC’s permitted or
required uses and disclosures of Protected Health Information hereunder.

 

 85

(c)           To notify PSC of any limitation(s) in
its or a THC Affiliate’s notice of privacy practices in accordance with 45 CFR
Section 164.520, to the extent that such limitation(s) may affect PSC’s
permitted or required uses and disclosures of Protected Health Information
hereunder.

(d)           To notify PSC of any restriction to
the use or disclosure of Protected Health Information that THC or a THC
Affiliate has agreed to in accordance with 45 CFR Section 164.522, to the
extent that such restriction may affect PSC’s permitted or required uses and
disclosures of Protected Health Information hereunder.

(e)           If PSC is required in order to
perform its obligations under this Agreement, or otherwise instructed by THC or
a THC Affiliate, to disclose Protected Health Information to another business
associate (as defined in HIPAA) of THC or a THC Affiliate, THC or the
applicable THC Affiliate shall be responsible for obtaining a business
associate agreement with such business associate.

(f)            Tenet shall not request, and the
performance of the Services shall not require, that PSC use or disclose
Protected Health Information in a manner that would violate the Federal Privacy
Regulations if done by Tenet.  If PSC is
actually aware that such a request would violate the Federal Privacy Regulations,
PSC shall promptly notify THC in writing and the Parties shall mutually agree
on manner which would allow PSC to use and/or disclose the Protected Health
Information under this Agreement in compliance with the Federal Privacy
Regulations prior to such use and/or disclosure.

ARTICLE 25.                                                  CONFIDENTIALITY.

25.01       Confidential Information.

(1)           Each Party shall use at least the
same standard of care in the protection of Confidential Information of the
other Party as it uses to protect its own confidential or proprietary
information.  Each Party shall use the
Confidential Information of the other Party only in connection with the
purposes of this Agreement and shall make such Confidential Information
available only to its employees, subcontractors or agents having a “need to
know” with respect to such purpose.  Each
Party shall advise each such employee, subcontractor and agent of its
obligations under this Agreement and require such employees, subcontractors and
agents to abide by such obligations.

(2)           The obligations in this Section
25.01 shall not restrict any disclosure by a Party pursuant to any
applicable law, rule or regulation, or by order of any court or government
agency (provided that the disclosing party shall give prompt notice to the
non-disclosing party of such order). 
Confidential Information 

 86
 

of
a Party shall not be afforded the protection of this Agreement if such data was
(A) developed by the other Party independently, (B) rightfully obtained by the
other Party without restriction from a third party, (C) publicly available
other than through the fault or negligence of the other Party or (D) released
without restriction to anyone.

25.02       Attorney-Client Privilege.  PSC acknowledges that THC asserts that
Privileged Work Product has been or will be prepared in anticipation of
litigation and that PSC is performing the services in respect of Privileged
Work Product as an agent of Tenet, and that all matter related thereto is
protected from disclosure by Rule 26 of the Federal Rules of Civil Procedure.  THC will notify PSC of any Privileged Work
Product to which PSC has or may have access. 
After the PSC Client Executive is notified or otherwise becomes aware
that such documents, data, database or communications are Privileged Work
Product, only PSC Project Personnel for whom such access is necessary for the
purposes of providing Services to Tenet as provided in this Agreement may have
access to Privileged Work Product. 
Should PSC ever be notified of any judicial or other proceeding seeking
to obtain access to Privileged Work Product, PSC shall (1) immediately notify
the person signing this Agreement on behalf of THC and THC’s General Counsel
and (2) resist providing such access to the extent it may lawfully do so.  THC shall have the right and duty to
represent PSC in such resistance or to select and compensate counsel to so
represent PSC or to reimburse PSC for reasonable attorneys’ fees and expenses
incurred in resisting such access.  If
PSC is ultimately required, pursuant to an order of a court of competent
jurisdiction, to produce documents, disclose data or otherwise act in
contravention of the confidentiality obligations imposed in this Agreement, or
otherwise with respect to maintaining the confidentiality, proprietary nature
and secrecy of Privileged Work Product, PSC shall not be liable for breach of
such obligation.

25.03       Injunctive Relief.  Notwithstanding Article 32, each Party
acknowledges and agrees that, in the event of a breach or threatened breach of
any of the provisions of this Article 25, or PSC’s breach of its
obligations in Section 24.10, the non-breaching Party may have no
adequate remedy in damages and, accordingly, shall be entitled to seek an
injunction to prevent such breach or threatened breach; provided, however, that
no specification of a particular legal or equitable remedy shall be construed
as a waiver, prohibition or limitation of any legal or equitable remedies in
the event of a breach hereof; provided further, however, that no such
application for injunctive relief shall be subject to arbitration.

25.04       Unauthorized Acts.  Each Party shall: (1) notify the other Party
promptly of any unauthorized possession, use or knowledge, or attempt thereof,
of any Confidential Information by any person or entity which may become known
to it, (2) promptly furnish to the other Party full details of the unauthorized
possession, use or knowledge, or attempt thereof, and use reasonable efforts to

 87
 

assist
the other Party in investigating or preventing the reoccurrence of any unauthorized
possession, use or knowledge, or attempt thereof, of Confidential Information,
(3) cooperate with the other Party in any litigation and investigation against
third parties deemed necessary by such Party to protect its proprietary rights
and (4) promptly prevent a reoccurrence of any such unauthorized possession,
use or knowledge of Confidential Information.

25.05       Legal Action.  Neither Party shall commence any legal action
or proceeding in respect of any unauthorized possession, use or knowledge, or
attempt thereof, of Confidential Information by any person or entity not a
Party to this Agreement which action or proceeding identifies the other Party
or discloses its Confidential Information without such Party’s consent.

25.06       Return/Destruction of Confidential
Information.  (1) Tenet fully
reserves its rights to retrieve, transport and deliver to third parties copies
of all or any part of its Confidential Information, including all manipulations
of data derived from or associated with its Confidential Information.  At no cost to Tenet (other than payment by
THC for (A) the media then in use with respect to Confidential Information that
is electronically maintained, and (B) costs associated with making such copies
with respect to Confidential Information that is not electronically
maintained), PSC shall promptly deliver copies of all such material in the
format as of the date of the request (and with respect to Confidential
Information that is electronically maintained, on the media in use as of the
date of the request) to THC or its designee upon THC’s written request and PSC
shall not delay, hinder or impede THC’s exercise of such powers,
notwithstanding the pendency of any dispute between THC and PSC justification
to so act or the pendency of any other dispute between the Parties.  (2) 
Except as otherwise specifically provided in this Agreement or otherwise
agreed by the Parties in writing, upon the termination or expiration of this
Agreement for any reason, each Party shall: 
(A) immediately cease to use the other Party’s Confidential Information,
except as may be reasonably required for the completion of the Termination
Assistance Services; (B) not later than ten days following the cessation of all
Termination Assistance Services, return the Confidential Information to the
disclosing Party or, at the disclosing Party’s option, destroy such
Confidential Information and all copies thereof, unless otherwise provided in
this Agreement; and, (C) upon request, provide to the disclosing Party written
certifications and copies of records evidencing such destruction in accordance
with its obligations under in this Section 25.06.

ARTICLE 26.                                                  REPRESENTATIONS
AND WARRANTIES.

26.01       By THC.  THC represents and warrants that:

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(1)           as of the Effective Date, it is a
corporation validly existing and in good standing under the laws of Nevada;

(2)           as of the Effective Date, it has all
the requisite corporate power and authority to execute, deliver and perform its
obligations under this Agreement for itself and its Affiliates;

(3)           the execution, delivery and
performance of this Agreement has been duly authorized by THC as of the
Effective Date;

(4)           as of the Effective Date, no
approval, authorization or consent of any governmental or regulatory authority
is required to be obtained or made by it in order for it to enter into and
perform its obligations under this Agreement;

(5)           in connection with its obligations
under this Agreement, it shall be responsible for its compliance with all
applicable Federal, state and local laws and regulations and shall obtain all
applicable permits and licenses;

(6)           the Tenet Proprietary Software does
not and will not, and any code or materials provided or created by Tenet, its
subcontractors or agents (except for any code or materials provided or created
by PSC, its subcontractors or agents) that is contained on the Developed
Software will not, infringe upon the proprietary rights of any third
party;  and

(7)           it or its Affiliates are either the
owner or authorized by the owner of the Tenet Machines to use such Tenet
Machines in accordance with the terms of this Agreement.

26.02       By PSC.  PSC represents and warrants that:

(1)           as of the Effective Date, it is a
corporation validly existing and in good standing under the laws of Delaware;

(2)           as of the Effective Date, it has all
requisite corporate power and authority to execute, deliver and perform its
obligations under this Agreement;

(3)           the execution, delivery and
performance of this Agreement has been duly authorized by PSC as of the
Effective Date;

(4)           as of the Effective Date, no
approval, authorization or consent of any governmental or regulatory authority
is required to be obtained or made by it in order for it to enter into and
perform its obligations under this Agreement;

(5)           in connection with providing the
Services, it shall be responsible for its compliance with all applicable
Federal, state and local laws and regulations 

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and
has obtained all applicable permits, rights and licenses (including all rights
and licenses which are necessary to use the Systems);

(6)           it shall provide the Services in such
a manner so as to [**];

(7)           the PSC Proprietary Software does not
and will not, and the provision of the Services and the Developed Software
(except for any code or materials provided or created by Tenet, its
subcontractors or agents) will not, infringe upon the proprietary rights of any
third party;

(8)           it is either the owner or authorized
by the owner of the PSC Machines to use such PSC Machines in accordance with
the terms of this Agreement; and

(9)           the Developed Software shall perform
in accordance with the applicable specifications for [**] from the date such
Developed Software is placed in production.

ARTICLE 27.                                                  DISCLAIMER.

EXCEPT
AS SPECIFIED IN SECTION 26.01 AND SECTION 26.02, NEITHER PSC NOR
TENET MAKES ANY OTHER WARRANTIES.  EACH
PARTY EXPLICITLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING,
BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE IN RESPECT OF THE SERVICES AND THE SYSTEMS.

ARTICLE 28.                                                  TERMINATION.

28.01       Termination for Convenience.  Subject to Section 29.01, THC may
terminate this Agreement in its entirety at any time upon at least 180 days’
prior written notice to PSC; provided, however, that termination of this Agreement
pursuant to this Section 28.01 shall not be effective prior to the end
of the [**] Contract Year.

28.02       Termination for Change in Control.  Subject to Section 29.02, in the event
of a merger, consolidation or other similar corporate transaction in which THC
is not the surviving entity and the shareholders of THC immediately prior to
such merger, consolidation or other similar corporate transaction do not
continue to own at least 50 percent of the voting interests of the surviving
entity following such transaction, or a sale of substantially all of the assets
or stock of THC, then THC may terminate this Agreement in its entirety; such
termination to be effective at any time after the [**] Contract Year upon 180
days’ notice written notice to PSC 

 90
 

from
THC given within the later of (a) 12 months after the change of control or (b)
180 days after the end of the [**] Contract Year.

28.03       Termination for Cause. If either
Party commits a material default in the performance of its obligations under
this Agreement (other than a payment default), and such default is not cured
within [**] days after notice is received by the defaulting Party specifying,
in reasonable detail, the nature of the default, the non-defaulting Party may,
upon further notice to the defaulting Party, terminate this Agreement as of the
date specified in such notice of termination. 
[**]

28.04       Termination for Non-Payment.  Subject to Section 22.05, if THC
defaults in the payment of any amount due to PSC pursuant to this Agreement and
does not cure such default within 10 days after being given notice of such
default, PSC may terminate this Agreement upon notice to THC.

28.05       Termination for Insolvency.  Either Party may, by giving the other notice,
terminate this Agreement with immediate effect:

(1)           upon the institution by the other
Party of proceedings to be adjudicated bankrupt or insolvent, or the consent by
the other Party to institution of bankruptcy or insolvency proceedings against
it or the filing by the other Party of a petition or answer or consent seeking
reorganization or release under the Federal Bankruptcy Act, or any similar
applicable Federal or state law, or the consent by the other Party to the
filing of any such petition or the appointment of a receiver, liquidator,
assignee, trustee, or other similar official of the other Party or of all or
any substantial part of its property, or the making by the other Party of an
assignment for the benefit of creditors, or the admission in writing by the
other Party of its inability to pay its debts generally as they become due or
the taking of corporate action by the other Party in furtherance of any such
action; or

(2)           if, within 60 days after the
commencement of an action against the other Party seeking any bankruptcy,
insolvency, reorganization, liquidation, dissolution or similar relief
under  any present or future law or
regulation, such action shall not have been dismissed or all orders or
proceedings thereunder affecting the operations or the business of the other
Party stayed, or if the stay of any such order or proceeding shall thereafter
be set aside; or if, within 60 days after the appointment without the consent
or acquiescence of the other Party of any trustee, receiver or liquidator or
similar official of the other Party or of all or any substantial part of the
property of the other Party, such appointment shall not have been vacated.  In the event either Party becomes or is
declared insolvent or bankrupt, is the subject of any proceedings related to
its liquidation, insolvency or for the appointment of a receiver or similar
officer for it, makes an assignment for the benefit of all or substantially all
of its creditors, or enters onto an agreement for the composition, extension or
readjustment of all or substantially all of its 

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obligations,
then the other Party may, by giving notice thereof to such Party, terminate
this Agreement as of a date specified in such notice of termination.

28.06       Termination for [**].  If, at any time, [**], THC may, upon notice
to PSC, terminate this Agreement in its entirety without regard to Section
[**].  Nothing in this Section 28.06
should be deemed to limit THC’s right to terminate this Agreement pursuant to Section
[**].

28.07       Termination for Material Change in
Business.  In the event Tenet divests
or closes Core Hospitals such that the total number of Core Hospitals is
reduced to [**] or less, unless the Parties are able to agree after no more
than seventy-five (75) days of negotiations on adjustments to the Core Fees
and/or changes to any other terms of this Agreement (e.g., Performance
Standards) due to such decreased Core Hospitals, subject to Section 29.03,
THC may terminate this Agreement effective after the [**] Contract Year upon
thirty (30) days written notice.

28.08       Partial Termination.  Subject to Section 29.05, THC may
terminate this Agreement in part at any time during the Term upon [**] notice
to PSC.  In the event of such a
termination, PSC shall adjust the Fees in accordance with Section 29.05.

28.09       Other Terminations. This Agreement
may also be terminated pursuant to Section [**].  Any such termination shall not be subject to Section
[**].

28.10       Divestiture of Affiliate.  In the event that THC sells all or a portion
of its stock in any Affiliate and, as a consequence of such sale, such entity
is no longer an Affiliate, or in the event that such entity sells all or
substantially all of its assets to a third party, PSC shall, to the extent
permitted by third party relationships, at THC’s request, continue to perform
Services for such entity at the rates set forth in Section 1.03(2) of Exhibit
10  [Fees] for up to
thirty-six (36) months following such sale of stock or assets, as directed by
THC.

ARTICLE 29.                                                  TERMINATION
FEE. 

29.01       Termination for Convenience.  In the event of a termination pursuant to Section
28.01, THC shall pay to PSC on the date such termination is effective an
amount equal to the termination fee specified in Exhibit 16  [Termination Fees] for termination
pursuant to Section 28.01 for the Contract Year that such termination is
effected.

29.02       Termination for Change of Control.
In the event of a termination pursuant to Section 28.02, THC shall pay
to PSC on the date such termination is effective an amount equal to the
termination fee specified in Exhibit 16  

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[Termination Fees]
for termination pursuant to Section 28.02 for the Contract Year that
such termination is effected.

29.03       Termination for Material Change in
Business.  In the event of a
termination pursuant to Section 28.07, THC shall pay to PSC on the date
such termination is effective an amount equal to the termination fee specified
in Exhibit 16  [Termination Fees]
for termination pursuant to Section 28.07 for the Contract Year that
such termination is effected.

29.04       Proration. The termination fee
specified in Exhibit 16  [Termination
Fees] shall be prorated from the effective date of any termination
effected pursuant to Section 28.01, Section 28.02 or Section
28.07 according to the following formula:

[**]= Termination Fee

where:

[**]

[**]

[**]

29.05        Partial Termination of the Services.
In the event of a partial termination of the Services pursuant to Section
28.08, PSC shall adjust the Fees as follows:

(1)           PSC shall [**];

(2)           In the event the terminated Service
is replaced with a new service, the Parties shall negotiate appropriate fees
for the new service in accordance with Section 8.01 [**].

(3)           In the event the Parties cannot agree
upon the appropriate adjustment to the Fees pursuant to Section 29.05(1)
and Section 29.05(2), [**].

(4)           The net impact of the adjustment to
the Fees pursuant to this Section 29.05 per Contract Year shall not
exceed [**], which amount shall be adjusted annually in accordance with Section
21.07(2) and Section 27.01(3)(a).

29.06       No Additional Fees.  In the event of a termination of this Agreement,
THC shall not pay to PSC any fees or charges other than (1) those Fees for
Services provided prior to such termination; and (2) fees for Termination
Assistance Services as set forth in Article 30, and (3) the applicable
termination fees set forth in Section 29.01, Section 29.02, Section
29.03 and Section 29.04.  

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Notwithstanding
the foregoing, nothing in this Section 29.06 will constitute a waiver by
PSC of its right to seek to recover damages from THC due to a breach of Tenet’s
obligations under this Agreement.

ARTICLE 30.                                                  TERMINATION
ASSISTANCE. 

As a Special Service,
PSC shall perform, upon THC’s request, the Termination Assistance Services for
the Termination Assistance Period; provided, however, that PSC shall (1) except
as provided in clause (3), perform any portion of such Termination Assistance
Services that constitutes the Core Obligations as of the date of notice of
termination or the date of expiration of this Agreement, as applicable, for the
Core Fees in effect on such date (subject to adjustment in accordance with Section
21.07 during the Termination Assistance Period); (2) perform the Special
Services as of the date of notice of termination or the date of expiration of
this Agreement, as applicable, for the Special Services Fees set forth in the
applicable PSS or Service Request (subject to adjustment in accordance with Section
21.07 during the Termination Assistance Period); and (3) in the event of
a  termination of this Agreement pursuant
to Section [**], Section 28.03, Section 28.04, Section
28.05, Section 28.06, Section 28.09 or Section [**],
PSC shall perform Termination Assistance Services that constitute Core
Enterprise Services [**] for the applicable period of time set forth in Exhibit
18.  PSC shall not be obligated to
provide Termination Assistance Services to Tenet following a termination of
this Agreement pursuant to Section 28.04 unless PSC receives reasonable
assurances of THC’s ability to pay PSC for such Termination Assistance.  THC shall provide to PSC reasonable advance
written notice of the termination date of the Termination Assistance Period,
but in no event less than one hundred eighty (180) days prior to such
termination.

ARTICLE 31.                                                  EXIT
PLAN.

31.01       Exit Rights and Obligations.  Upon the expiration or the termination of
this Agreement for any reason:

(1)           At THC’s request, PSC shall provide
the Termination Assistance Services in accordance with Article 30;

(2)           Tenet shall allow PSC to use, at no
charge, those Tenet facilities being used to perform the Termination Assistance
Services for as long as PSC is providing the Termination Assistance Services to
enable PSC to effect an orderly transition of PSC’s resources;

(3)           except as provided in Section
31.01(5) or Section 31.01(9), each Party shall have the rights
specified in Article 16 in respect of the Software;

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(4)           upon THC’s request and provided this
Agreement is not terminated by PSC under Section 28.03, Section 28.04
or Section 28.05, with respect to PSC Proprietary Software used to
provide the Services as of the date of such expiration or termination, PSC
shall[**] grant to Tenet a perpetual, non-exclusive, royalty-free,
non-supported license to use the PSC Proprietary Software solely in connection
with Tenet’s business.

(5)           except as provided in Section
31.01(9), upon THC’s request, with respect to PSC Third Party Software used
to provide the Services as of the date of such expiration or termination, PSC
shall, if possible, [**] transfer, assign or sublicense such PSC Third Party
Software to Tenet or its designee; as between Tenet and PSC, THC shall be
responsible for any transfer fee or non-recurring charge imposed by the
applicable vendor;

(6)           upon THC’s request, with respect to
tools used in connection with the operation of PSC Proprietary Software and PSC
Third Party Software to provide the Services as of the date of such expiration
or termination, PSC shall, if possible, [**] grant a perpetual, non-exclusive,
royalty-free license to use such tools or, as appropriate, transfer, assign or
sublicense such tools to Tenet or its designee; as between PSC and Tenet, THC
shall be responsible for any transfer fee or non-recurring charge imposed by
the applicable vendor;

(7)           upon THC’s request, with respect to
any contracts applicable to services being provided to Tenet for maintenance,
disaster recovery services and other necessary third party services being used
by PSC to perform the Services as of the expiration or termination, PSC shall,
if possible, transfer or assign such agreements to Tenet or its designee, on
terms and conditions acceptable to both Parties; as between PSC and Tenet, THC
shall be responsible for any transfer fee or non-recurring charge imposed by
the applicable vendors; and

(8)           upon THC’s request, PSC shall sell to
Tenet or its designee the PSC Machines owned by PSC and being used exclusively
to provide the Services, free and clear of all liens, security interests or
other encumbrances, at PSC’s net book value.

(9)           Any transfer of any Additional
Equipment or any Additional Software Licenses leased or licensed, as
applicable, in PSC’s name shall be governed by the Procurement Procedures in
lieu of this Article 31.

ARTICLE 32.                                                  DISPUTE
RESOLUTION. 

32.01       Account Executives. All disputes
shall initially be referred jointly to the PSC Client Executive and the Tenet
Account Executive.  If the Account
Executives are unable to resolve the dispute within 10 business days after 

 95
 

referral
of the matter to them, the Parties shall submit the dispute to the Management
Committee.

32.02       Management Committee. The
Management Committee shall meet at least once every 90-day period during the
Term (or such other time as the Management Committee may agree from time to
time) for the purpose of overseeing the performance of this Agreement and
resolving the disputes that may arise under this Agreement.  The Management Committee shall consider the
disputes in the order such disputes are brought before it.  In the event the Management Committee is
unable to resolve a dispute within 10 business days from the date that the
Management Committee first considered the matter, the Management Committee
shall notify the senior management of each Party pursuant to Section 32.03.

32.03       Senior Management. Either Party
may, upon notice and within 10 business days of receipt of a notice from the
Management Committee pursuant to Section 32.02, elect to convene a
Hearing.  The Hearing shall occur no more
than 10 business days after a Party serves notice to commence the procedure set
forth in this Section 32.03.  Each
Party may be represented at the Hearing by lawyers.  If the matter cannot be resolved at such
Hearing by such senior executives, the neutral adviser, if one has been agreed
upon, may be asked to assist such senior executives in evaluating the strengths
and weaknesses of each Party’s position on the merits of the dispute.  Thereafter, such senior executives shall meet
and try again to resolve the matter.  If
the matter cannot be resolved at such meeting, such senior executives shall
inform their respective senior management and the proceedings occurring
pursuant to this Section 32.03 will have been without prejudice to the
legal position of either Party.  Each of
the Parties shall bear its respective costs incurred in connection with the
procedure set forth in this Section 34.03, except that they shall share
equally the fees and expenses of the neutral adviser, if any, and the costs of
the facility for the Hearing.

32.04       Arbitration.  Subject to Section 32.05, if a dispute
is not resolved pursuant to Section 32.03, then either Party may, within
30 business days after the completion of the procedures set forth in Section
32.02 and Section 32.03, as appropriate, upon notice, submit any
dispute to binding arbitration in accordance with this Section 32.04.

(1)           The arbitration shall be held in the
greater Dallas, Texas metropolitan area before a panel of three
arbitrators.  Either THC or PSC may, by
notice to the other Party, demand arbitration, by serving on the other Party a
statement of the dispute, controversy or claim, and the facts relating or giving
rise thereto, in reasonable detail, and the name of the arbitrator selected by
it.

 96

(2)           Within 15 days after receipt of such
notice, the other Party shall name its arbitrator, and the two arbitrators
named by the Parties shall, within 15 days after the date of such notice,
select the third arbitrator.

(3)           The arbitration shall be governed by
the Commercial Arbitration Rules of the AAA, except as expressly provided in
this Section 32.04; provided, however, that the arbitration shall be
administered by any organization agreed upon by the Parties.  The arbitrators may not amend or disregard any
provision of this Section 32.04.

(4)           The arbitrators shall allow such
discovery as is appropriate to the purposes of arbitration in accomplishing
fair, speedy and cost-effective resolution of disputes.  The arbitrators shall not be required to make
findings of fact or render opinions of law.

(5)           The arbitrators shall have no
authority to award damages in excess or in contravention of Article 34.

32.05       Institution of Legal Proceedings.
The Parties agree not to institute legal proceeding against each other until
after the procedures provided in Section 32.01, Section 32.02 and
Section 32.03 have been exercised, except for an action to seek
injunctive relief to prevent or stay a breach of any provision of Article 15,
Article 23, Article 24 or Article 32 of this Agreement.

32.06       Continuity of Services. During the
Term, PSC assumes an independent obligation to continue to perform the Services
during any dispute between the Parties, including any arbitration proceedings
pursuant to Section 32.04 or litigation proceedings, provided THC
fulfills its obligations to pay undisputed amounts or pays amounts disputed in
good faith into an escrow account pursuant to Section 22.04.

ARTICLE 33.                                                  INDEMNIFICATION.

33.01       By THC. THC shall indemnify PSC
and its Affiliates from, and defend PSC and its Affiliates against, any
liability or expenses arising out of or relating to:

(1)           any claim by a third party that (A)
the Tenet Proprietary Software or (B) the Tenet Developed Software or any code
or materials provided or created by Tenet, its subcontractors or agents that is
contained in the Tenet Software (except as may have been caused by a (i)
modification by PSC, PSC Project Personnel or PSC Company Contractors or (ii)
PSC’s combination, operation or use with devices, data or programs furnished by
PSC, PSC Project Personnel or PSC Company Contractors, if the infringement
would not have occurred but for such

 97
 

modifications,
combination, operation or use) infringes upon the proprietary rights of any
third party;

(2)           any claims in connection with the
Third Party Agreements arising prior to July 1, 1995;

(3)           any amounts, including taxes,
interest and penalties assessed against PSC which are obligations of THC
pursuant to Article 23;

(4)           the inaccuracy or untruthfulness of
any representation or warranty made by THC pursuant to Section [**];

(5)           a violation by Tenet or its
employees, subcontractors or agents (other than PSC) of Federal, state or other
laws or regulations for (a) the protection of medical records privacy or (b)
the protection of persons or members of a protected class or category;

(6)           sexual discrimination or harassment
by Tenet or its employees, subcontractors or agents;

(7)           work-related injury (except as may be
covered by PSC’s workers’ compensation) or death caused by Tenet, its
employees, subcontractors or agents (other than PSC);

(8)           vested employee benefits of any kind
not expressly assumed by PSC;

(9)           any representations, oral or written,
made by Tenet to Tenet’s employees;

(10)         tangible personal or real property damage
resulting solely from Tenet’s acts or omissions (subject to clause (7) above);
and

(11)         any payment or other obligations of
Tenet which accrue prior to the Effective Date and which were not PSC
obligations under the 1995 Agreement or the 2001 Agreement.

THC shall be responsible
for any reasonable costs and expenses incurred by PSC in connection with the
enforcement of this Section 33.01.

33.02       By PSC.  PSC shall indemnify Tenet from, and defend
Tenet against, any liability or expenses arising out of or relating to:

(1)           any claim by a third party that (a)
the Services, (b) the PSC Proprietary Software or (c) the PSC Developed
Software or any code or materials provided or created by PSC, PSC Project
Personnel or PSC Company Contractors

 98
 

that
is contained in the Tenet Software infringe upon the proprietary rights of any
third party (except as may have been caused by (i) a modification by Tenet’s
employees, subcontractors or agents (other than PSC) which was not at the
direction of PSC or in accordance with specifications provided by PSC or (ii)
the combination, operation or use by Tenet or its employees or subcontractors
or agents with devices, data or programs furnished by Tenet, its subcontractors
or agents (other than PSC) which was not , if such modification, combination,
operation or use was not at the direction of PSC or in accordance with
specifications provided by PSC and the infringement would not have occurred but
for such modification, combination, operation or use);

(2)           any claim by a third party in respect
of services or systems provided by PSC to a third party (other than a party
receiving the Services pursuant to this Agreement);

(3)           a failure by PSC to renew, terminate
or cancel Tenet’s agreements in respect of the Third Party Agreements in accordance
with Article 7;

(4)           any amounts including taxes, interest
and penalties assessed against Tenet which are obligations of PSC pursuant to Article
23;

(5)           the inaccuracy or untruthfulness of
any representation or warranty made by PSC pursuant to Sections [**] and
[**];

(6)           claims arising out of PSC’s breach or
violation of PSC’s subcontracting arrangements;

(7)           a violation of Federal, state or
other laws or regulations for the protection of persons or members of a
protected class or category of persons by PSC or its employees, subcontractors
or agents,

(8)           sexual discrimination or harassment
by PSC, PSC Project Personnel or PSC Company Contractors,

(9)           work-related injury (except as may be
covered by Tenet’s workers’ compensation) or death caused by PSC, its
employees, subcontractors or agents,

(10)         vested employee benefits of any kind
expressly assumed by PSC and

(11)         any representations, oral or written,
made by PSC to Tenet employees or the Transitioned Employees hired by PSC with
regard to the terms of their employment by PSC;

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(12)         tangible personal or real property
damage resulting solely from PSC’s acts or omissions (subject to clause (9)
above);

(13)         claims by SMS arising out of PSC’s
breach or violation of its confidentiality agreement between SMS and PSC, dated
June 24, 1997, and any similar or successor agreement between SMS and PSC; and

(14)         claims by Microsoft Corporation arising
out of PSC’s breach of the Microsoft® Select Outsourcer Enrollment Agreement
between Microsoft Corporation and PSC, dated July 16, 1997, and any similar or
successor agreement between Microsoft Corporation and PSC.  PSC shall be responsible for any reasonable
costs and expenses incurred by Tenet in connection with the enforcement of this
Section 33.02.

PSC shall be responsible
for any reasonable costs and expenses incurred by Tenet in connection with the
enforcement of this Section 33.02.

33.03       Indemnification Procedures. If any
third party makes a claim covered by Section 33.01 or Section 33.02
against an Indemnitee with respect to which such Indemnitee intends to seek
indemnification under Section 33.01 or Section 33.02, such
Indemnitee shall give notice of such claim to the Indemnifying Party (under Section
33.01 or Section 33.02), including a brief description of the amount
and basis therefore, if known.  Upon
giving such notice, the Indemnifying Party shall be obligated to defend such
Indemnitee against such claim, and shall be entitled to assume control of the
defense of the claim with counsel chosen by the Indemnifying Party, reasonably
satisfactory to the Indemnitee. 
Indemnitee shall cooperate fully with, and assist, the Indemnifying
Party in its defense against such claim in all reasonable respects.  The Indemnifying Party shall keep the
Indemnitee fully apprised at all times as to the status of the defense.  Notwithstanding the foregoing, the Indemnitee
shall have the right to employ its own separate counsel in any such action, but
the fees and expenses of such counsel shall be at the expense of such
Indemnitee; provided, however (1) if the Parties agree that it is advantageous
to the defense for the Indemnitee to employ its own counsel or (2) in the
reasonable judgment of the Indemnitee, based upon an opinion of counsel which
shall be provided to the Indemnifying Party, representation of both the
Indemnifying Party and the Indemnitee would be inappropriate under applicable
standards of professional conduct due to actual or potential conflicts of
interest between them, then reasonable fees and expenses of the Indemnitee’s
counsel shall be at the expense of the Indemnifying Party, provided that the
Indemnifying Party approves such counsel. 
Neither the Indemnifying Party nor any Indemnitee shall be liable for
any settlement of any action or claim effected without its consent.  Notwithstanding the foregoing, the Indemnitee
shall retain, assume or reassume sole control over all expenses relating to
every aspect of the defense that it believes is not the subject of the
indemnification provided for in Section 33.01 or Section 

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33.02.
Until both the Indemnitee receives notice from the Indemnifying Party that it
will defend and the Indemnifying Party assumes such defense, the Indemnitee
may, at any time after 10 days from the date notice of claim is given to the
Indemnifying Party by the Indemnitee, resist or otherwise defend the claim or,
after consultation with and consent of the Indemnifying Party, settle or
otherwise compromise or pay the claim. 
The Indemnifying Party shall pay all costs of the Indemnitee arising out
of or relating to that defense and any such settlement, compromise or
payment.  The Indemnitee shall keep the
Indemnifying Party fully apprised at all times as to the status of the defense.  Following indemnification as provided in Section
33.01 or Section 33.02, the Indemnifying Party shall be subrogated
to all rights of the Indemnitee with respect to the matters for which
indemnification has been made.

ARTICLE 34.                                                  DAMAGES.

34.01       Direct Damages.  Each of THC and PSC shall be liable to the
other Party for any direct damages arising out of or relating to a breach of
its obligations under this Agreement; provided, however, that neither Tenet nor
PSC shall be liable for any amount, in the aggregate, of direct damages whether
based on an action or claim, in contract, equity, negligence, tort or
otherwise, for all events, acts or omissions (except as provided in Section
34.04) that exceeds the Direct Damages Cap. 
The following shall be considered direct damages and neither Party shall
assert that they are Consequential Damages to the extent they result from a
Party’s failure to fulfill their obligations in accordance with this Agreement:

[**]

[**]

[**]

[**]

[**]

[**]

[**]

[**] 
Notwithstanding the foregoing, nothing in this Section 34.01 will
constitute a waiver by either Party of its right to dispute allegations that it
has failed to fulfill its obligations in accordance with this Agreement,
including its right to assert counterclaims and/or defenses, etc., to such
allegations in accordance with applicable Laws.

 101
 

34.02       Consequential Damages.  Neither Tenet nor PSC shall be liable for,
nor will the measure of damages include, any Consequential Damages.

34.03       Performance Credits.

(1)           2001
Core Obligations.  Except as
otherwise provided herein or in the 2001 Agreement, during the period beginning
on the Effective Date up to the Commencement Date, in the event PSC fails to
meet any of the 2001 Core Performance Standards for the specified measurement
period described in Exhibit 5 to the 2001 Agreement, PSC shall issue a credit
against the 2001 Core Fees equal to the applicable 2001 Core Performance
Credits in accordance with such Exhibit 5.

(2)           Core Obligations.  Except as otherwise provided herein, during
the period beginning on the Effective Date and through the Term, in the event
PSC fails to meet any of the Core Performance Standards for the specified
measurement period described in Exhibit 5  [Core Performance Standards and Core Performance Credits],
PSC shall issue a credit against the Core Fees equal to the applicable Core
Performance Credits in accordance with Exhibit 5  [Core Performance Standards and Core Performance
Credits]

(3)           Special Services.  Except as otherwise provided herein, in the
event PSC fails to meet (a) any of the Continuing Core Performance Standards
for the specified measurement period described in the applicable Continuing
Special Services Schedule; or (b) any of the Special Services Performance
Standards for the measurement period described in the applicable PSS or Service
Request, PSC shall issue a credit against the Special Service Fees for the
applicable PSS, Service Request or Continuing Special Services Schedule, as the
case may be, equal to the applicable Special Services Performance Credits or
Continuing Special Services Performance Credits in accordance with the
applicable PSS, Service Request or Special Services Schedule, as the case may
be.

(4)           The Performance Credits represent
negotiated amounts on the basis of reduced service levels and shall not be
deemed or construed as a penalty.  If the
cumulative Performance Credits incurred [**]. 
Nothing in this Section 34.03 shall be deemed to [**].

34.04       Exclusions.  The limitations or exculpations of liability
set forth in Section 34.01 and Section 34.03 are not applicable
to: (1) indemnification claims as set forth in [**]; (2) liability resulting
from the [**]; or, (3) any breach of [**]. 
The exculpation of liability set forth in Section 34.02 is not
applicable to: (1) indemnification claims as set forth in [**]; (2) any breach
of [**]; or, (3) failure of one Party to make payments due under this Agreement
to the other.

 102
 

ARTICLE 35.                                                  INSURANCE,
FINANCIAL STATEMENTS [**].

35.01       Insurance. Without limitation of
any of THC’s other rights or remedies, during the Term, PSC shall maintain at
PSC’s own expense insurance of the type and in the amounts specified below:

(1)           errors and omission insurance in the
amount of $[**], issued by a reputable insurance company or companies rated at
least “A minus” by Best’s Insurance Service, Inc.  The underwriter(s) and the terms of any such
insurance shall be subject to THC’s prior approval.  Upon termination of the policy and at THC’s
request and expense, PSC will purchase the 10-year extended reporting period
option for Tenet’s benefit;

(2)           statutory workers compensation in
accordance with all Federal, state and local requirements, employee liability
in an amount not less than $[**] per occurrence;

(3)           comprehensive general public
liability (including contractual liability insurance) in an amount not less
than $[**] per occurrence; and

(4)           comprehensive automobile liability
covering all vehicles that PSC owns, hires or leases in an amount not less than
$[**] per occurrence (combined single limit for bodily injury and property
damages).

Each such insurance
policy specified in Sections 35.01(3) and (4) shall name THC as
an additional insured and shall provide for at least 60 days’ notice to THC in
the event of any modification or cancellation, and in such event, PSC shall
secure replacement insurance to be effective upon expiration or termination of
the earlier policy so that there is no gap in coverage.  PSC will also notify THC at least 60 days in
advance if PSC desires to materially modify or cancel any such insurance.  Upon request, PSC shall furnish THC with
certificates of insurance to evidence its compliance with the provisions
hereof.

35.02       [**]

35.03       Financial Audit. In the event
[**]  PSC shall identify and make
available to THC or its designee all books, records and related documentation
relevant to the audit.  If the audit does
not provide THC with reasonable assurance that [**].

ARTICLE 36.                                                  MISCELLANEOUS
PROVISIONS.

36.01       Assignment and Change of Control.

 103
 

(a)           Neither Party may assign this
Agreement or any of its rights or obligations hereunder without the consent of
the other Party and any such attempted assignment shall be void, except that
either Party may assign this Agreement or any of its rights or obligations
hereunder without the consent of the other Party pursuant to a change of
control, including a merger, consolidation or other similar corporate
transaction, or sale of substantially all of its assets or stock.

(b)           Without limitation of any of THC’s
rights under Section 28.02, in the event of a change of control of THC,
THC (or its successor or assignee) and PSC shall review the Services being
provided under the Agreement and adjust the Services and Core Fees, as
appropriate, to meet Tenet’s changing business requirements.

36.02       Notices.  Except as otherwise specified in this
Agreement, all notices, requests, consents, approvals and other communications
required or permitted under this Agreement shall be in writing and shall be
sent by telecopy to the number specified below. 
A copy of any such notice shall also be sent by registered express air
mail or overnight express courier within twenty-four hours of the date such
notice is transmitted by telecopy to the address(es) specified below:

	
  (1)

  	
  If to THC:

  	
   

  
	
   

  	
  Tenet Healthcare Corporation

  13737 Noel Road

  Dallas, Texas 75240

  Attn: General Counsel

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  
	
   

  
	
   

  	
  Tenet
  HealthSystem Medical, Inc.

  Suite 100

  13737 Noel Road

  Dallas, Texas
  75240

  Attn: Chief
  Information Officer

  
				

 

	
  (2)

  	
  If to PSC:

  	
   

  
	
   

  	
  Perot Systems
  Corporations

  2300 West Plano
  Parkway

  Plano, Texas
  75075

  Attn: General
  Counsel

  
				

 

 104
 

 

	
  

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Perot Systems
  Corporation

  2300 West Plano
  Parkway

  Plano, Texas
  75075

  Attn: Tenet
  Account Executive

  
			

 

 

Either Party may change
its address or telecopy number for notification purposes by giving the other
Party notice of the new address or telecopy number and the date upon which it
will become effective.

36.03       Counterparts. This Agreement may
be executed in any number of counterparts, all of which taken together shall
constitute one single agreement between the Parties.

36.04       Headings and References. The
article and section headings and the table of contents are for reference and
convenience only and shall not be considered in the interpretation of this Agreement.  References to and mentions of the word “including”
means “including, without limitation.”

36.05       Relationship. The performance by
PSC of its duties and obligations under this Agreement shall be that of an
independent contractor and nothing contained in this Agreement, except for the
limited agency expressly provided for herein, shall create or imply an agency
relationship between Tenet and PSC, nor shall this Agreement be deemed to
constitute a joint venture or partnership between Tenet and PSC.  PSC agrees and represents that it is an
independent contractor and its personnel are not Tenet’s agents or employees
for federal tax purposes, and are not entitled to any Tenet employee
benefits.  PSC assumes sole and full
responsibility for the acts of its personnel and PSC and its personnel have no
authority to make commitments or enter into contracts on behalf of, bind or
otherwise obligate Tenet in any manner whatsoever, except for the limited
agency expressly provided for herein.

36.06       Consents, Approvals and Requests.
Unless otherwise specified in this Agreement, all consents and approvals,
acceptances or similar actions to be given by either Party under this Agreement
shall not be unreasonably withheld or delayed and each Party shall make only
reasonable requests under this Agreement.

36.07       Severability.  If any provision of this Agreement (other
than a term or provision relating to any payment obligation) is held by a court
of competent jurisdiction to be contrary to law, then the remaining provisions
of this Agreement or the application of such provision to persons or
circumstances other than those as to which it is invalid or unenforceable shall
not be affected thereby, and each such provision of this Agreement shall be
valid and enforceable to the extent granted by law.

 105

36.08       Waiver. No delay or omission by
either Party to exercise any right or power it has under this Agreement shall
impair or be construed as a waiver of such right or power.  A waiver by any Party of any breach or
covenant shall not be construed to be a waiver of any succeeding breach or any
other covenant.  All waivers must be in
writing and signed by the Party waiving its rights.

36.09       Publicity. Neither Party shall use
the other Party’s or its Affiliates’ names, trademarks or service marks or
refer to the other Party or its Affiliates directly or indirectly in any media
release, public announcement or public disclosure relating to this Agreement or
its subject matter to the extent the materials in such media release,
announcement or disclosure have not previously been made publicly available
(including any promotional or marketing materials, customer lists or business
presentations) without obtaining consent from the other Party for each such use
or release.  Notwithstanding the
foregoing limitation, either Party may use the other Party’s and its Affiliates’
name in any promotional or marketing materials designed for a particular
potential customer, provided such potential customer has signed a
confidentiality agreement requiring it not to disclose the contents of such
promotional or marketing materials to an unaffiliated third party.  Further, the restrictions contained in this Section
36.09 do not apply to any announcement intended solely for internal
distribution at Tenet or PSC or any disclosure required by legal, accounting or
regulatory requirements beyond the reasonable control of Tenet or PSC.

36.10       Entire Agreement. This Agreement,
the 2001 Agreement where specified, and each of the Exhibits, which are hereby
incorporated by reference into this Agreement, constitute the entire agreement
between the Parties with respect to its subject matter, and there are no other
representations, understandings or agreements between the Parties relative to
such subject matter.

36.11       Amendments.  No amendment to, or change, waiver or
discharge of, any provision of this Agreement shall be valid unless in writing
and signed by an authorized representative of the Party against which such
amendment, change, waiver or discharge is sought to be enforced.

36.12       Governing Law. This Agreement and
the rights and obligations of the Parties hereunder shall be construed in
accordance with and be governed by the laws of the State of Texas.  Both Parties agree to waive trial by jury for
claims arising pursuant to this Agreement.

36.13       Survival. The terms of Section
16.01, Section 16.02, Section 16.03, Section 16.04, Section
16.05, Section 16.07, Section 19.01, Section 19.03,  Article 21, Article 22, Article
23, Article 24, Article 25, Sections 26.01(5), 26.01(6),
26.01(7), 26.02(5), 26.02(7), 26.02(8), and 26.02(9)), Article 27, Article
30, Article 31, Article 32, Article 33, Article 34,
Section 36.01, Section 36.02, Section 36.03, 

 106
 

Section
36.04, Section 36.07, Section
36.08, Section 36.09, Section 36.10, Section 36.12,
this Section 36.13, Section 36.14, Section 36.15, Section
36.16, Section 36.17, Section 36.18, and Section 36.19
shall survive the expiration or termination of this Agreement for any reason.

36.14       Third Party Beneficiaries. Except
as expressly provided in this Agreement, each Party intends that this Agreement
shall not benefit, or create any right or cause of action in or on behalf of,
any person or entity other than THC or PSC.

36.15       Acknowledgment. THC and PSC each
acknowledge that the limitations and exclusions contained in this Agreement
have been the subject of active and complete negotiation between the Parties
and represent the Parties’ agreement based upon the level of risk to THC and
PSC associated with their respective obligations under this Agreement and the payments
to be made to PSC and credits to be issued to THC pursuant to this
Agreement.  The Parties agree that the
terms and conditions of this Agreement shall not be construed in favor of or
against any Party by reason of the extent to which any Party or its
professional advisors participated in the preparation of this Agreement.

36.16       Interpretation. It is the intent
of the Parties that individual Affiliates of Tenet shall have the option to use
this Agreement to order additional services from PSC and shall be jointly
responsible with THC for paying PSC for such additional services provided to
such individual Affiliate; provided, however, that individual Affiliates shall
not be jointly liable for obligations of other Affiliates or THC.

36.17       Covenant of Further Assurances.
THC and PSC covenant and agree that, subsequent to the execution and delivery
of this Agreement and without any additional consideration, each of THC and PSC
will execute and deliver any further legal instruments and perform any acts
which are or may become reasonably necessary to effectuate the purposes of this
Agreement.

36.18       Solicitation.

(1)           Upon the expiration of this Agreement
or termination of this Agreement for any reason and upon notice to the PSC
Client Executive, Tenet shall have the following rights:

(A)                              Tenet,
or a third party service provider designated by Tenet, may offer employment to
and employ any of the Transitioned Employees;

(B)                                Tenet
may interview PSC employees whose primary assignment is the provision of
Services to Tenet.  THC 

 107
 

will provide a list of
people whom it intends to interview to the PSC Client Executive prior to making
contact with any such employees.  PSC
reserves the right to identify certain key account, project and other non-application
specific employees as exceptions to this process; provided, however, that the
number of such employees shall not adversely effect Tenet’s ability to receive
the Services; and

(C)                                A
third party service provider designated by THC may interview PSC employees
whose primary assignment is the provision of Services to Tenet.  THC will provide a list of people whom the
third party intends to interview to the PSC Client Executive prior to making
contact with any such employees.  PSC
reserves the right to limit this access to employees who have specific Tenet
application or field service responsibilities.

(D)                               In
the event Tenet or a third party employs any PSC employee pursuant to this Section
36.18(1), PSC hereby waives any non-compete provisions in the employee’s
employment or other agreement with PSC; provided, however, that if the employee
is hired by a third party service provider and transferred by the third party
service provider to another outsourcing account within two years of the
employee’s termination from PSC, this waiver will be null and void.

Notwithstanding the
foregoing, the activities of Tenet or the third party service provider under
this Section 36.18(1) will not interfere with PSC’s ability to perform
the Services, including the Termination Assistance Services, in accordance with
this Agreement; and provided further, the effective date of any employment of
any such employee with Tenet or the third party service provider must be after
the date that such employee is needed by PSC to perform the Termination
Assistance Services.

(2)           Neither Party shall solicit the other
Party’s employees during the Term, for any reason, without the other Party’s
consent.

(3)           Notwithstanding the foregoing, either
Party may at any time directly or indirectly solicit and hire any employee of
the other Party after such employee’s service with such Party has been
terminated by the Party or the employee terminates his or her employment with
such Party without the intention of accepting employment from the other Party.

 108
 

36.19       Remedies.  All remedies, either under this Agreement or
by law or otherwise afforded, will be cumulative and not alternative.

36.20       Amendment and Restatement of 2001
Agreement.  This Agreement amends,
restates and supersedes the 2001 Agreement. 
Payment due from or on behalf of Tenet under the 2001 Agreement shall be
paid in accordance with the 2001 Agreement. 
Fees, expenses and charges regarding Continuing Special Services
Schedules shall be determined in accordance with Exhibit 10 and Exhibit
19 of this Agreement.  No termination
fee is due or payable with respect to the 2001 Agreement.  Nothing contained in this Section 36.20
shall limit either Party’s ability to enforce any right or cause of action
accruing under the 2001 Agreement.

 109
 

IN
WITNESS WHEREOF, each of THC and PSC
each have caused this Agreement to be signed and delivered by its duly
authorized representative.

	
  

  	
  TENET HEALTHCARE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen F. Brown

  
	
   

  	
  Name:

  	
  Stephen F. Brown

  
	
   

  	
  Title:

  	
  Executive Vice President and Chief

  
	
   

  	
   

  	
  Information Officer

  
	
   

  	
  Date:

  	
  11-16-2006

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PEROT SYSTEMS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles A. Lyles

  
	
   

  	
  Name:

  	
  Charles A. Lyles

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
  Date:

  	
  11-16-2006

  
				

 

 

 110

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