Document:

<PAGE>

                                                                    EXHIBIT 10.1
                                                                    ------------

                               VOTING AGREEMENT

     THIS VOTING AGREEMENT (this "Agreement") is made as of October 18, 2000, by
and between Triad Hospitals, Inc., a Delaware corporation ("Triad"), and Welsh,
Carson, Anderson & Stowe VIII, L.P. (the "Stockholder").

     WHEREAS, Quorum Health Group, Inc., a Delaware corporation (the "Company"),
and Triad have entered into an Agreement and Plan of Merger, dated as of the
date hereof (as the same may be amended or supplemented, the "Merger
Agreement"), providing for the merger of the Company with and into Triad (the
"Merger"), upon the terms and subject to the conditions set forth in the Merger
Agreement;

     WHEREAS, as of the date hereof, the Stockholder beneficially owns the
number of shares of common stock, par value $.01 per share ("Company Common
Stock"), of the Company set forth opposite its name on Schedule A attached
                                                       ----------
hereto (such shares of Company Common Stock, together with the 6.0% Convertible
Subordinated Debentures, shares of Company Common Stock issuable upon conversion
of such debentures and any other shares of capital stock of the Company acquired
by the Stockholder after the date hereof and during the term of this Agreement,
being collectively referred to herein as the "Subject Shares"); and

     WHEREAS, as a condition to its willingness to enter into the Merger
Agreement, Triad has requested that the Stockholder enter into this Agreement
pursuant to which the Stockholder shall, among other things, vote in favor of
adopting and approving the Merger Agreement and the Merger in accordance with
the terms hereof and thereof.

     NOW, THEREFORE, to induce Triad to enter into, and in consideration of its
entering into, the Merger Agreement, and in consideration of the promises and
the representations, warranties and agreements contained herein, the parties
agree as follows:

     1.   Proxy.  Contemporaneously with the execution of this Voting Agreement,
          -----
Stockholder shall deliver to Triad a proxy in the form attached to this Voting
Agreement as Schedule B, which shall be irrevocable to the fullest extent
             ----------
permitted by law, with respect to the shares referred to therein (the "Proxy").

     2.   Representations and Warranties of Stockholder.  The Stockholder hereby
          ---------------------------------------------
represents and warrants to Triad as follows:

          (a)  Authority; No Conflict.  The Stockholder has all requisite
               ----------------------
power and authority to enter into this Agreement and to consummate the
transactions contemplated hereby. This Agreement has been duly executed and
delivered by the Stockholder and constitutes a valid and binding obligation of
the Stockholder enforceable against the Stockholder in accordance with its
terms. The execution and delivery of this Agreement does not, and the
consummation of the transactions contemplated hereby and compliance with the
terms hereof will not, conflict with, result in any violation of, or constitute
(with or without notice of lapse of time or both) default under, any provision
of any material

                                       1
<PAGE>

trust agreement, loan or credit agreement, bond, note, mortgage, indenture,
lease, partnership agreement or other contract, agreement, obligation,
commitment, arrangement, understanding, instrument, permit, concession,
franchise or license or any statute, law, ordinance, rule, regulation, judgment,
order, notice or decree applicable to the Stockholder or to any of the
Stockholder's property or assets.

          (b)  The Subject Shares. The Stockholder is the record and beneficial
               ------------------
owner of, and has good and marketable title to, the Subject Shares, free and
clear of any Liens (as defined in the Merger Agreement) whatsoever. The
Stockholder does not own, of record or beneficially, any shares of capital stock
of the Company other than the Subject Shares set forth opposite its name on
Schedule A attached hereto. The Stockholder has the sole right to vote such
----------
Subject Shares (other than the 6.0% Convertible Subordinated Debentures which
may not be voted prior to the issuance of the Company Common Stock upon
conversion), and none of such Subject Shares is subject to any voting trust or
other agreement, arrangement or restriction with respect to the voting of such
Subject Shares, except as contemplated by this Agreement.

     3.   Representations and Warranties of Triad.  Triad hereby represents and
          ---------------------------------------
warrants to the Stockholder that Triad has all requisite corporate power and
authority to enter into this Agreement and to consummate the transactions
contemplated hereby. This Agreement has been duly authorized, executed and
delivered by Triad and constitutes a valid and binding obligation of Triad
enforceable against Triad in accordance with its terms. The execution and
delivery of this Agreement does not, and the consummation of the transactions
contemplated hereby and compliance with the terms hereof will not, conflict
with, result in any violation of, or constitute (with or without notice or lapse
of time or both) default under, any provisions of the Certificate of
Incorporation, as amended, or Bylaws of Triad or any material trust agreement,
loan or credit agreement, bond, note, mortgage, indenture, lease or other
contract, agreement, obligation, commitment, arrangement, understanding,
instrument, permit, concession, franchise or license or any statute, law,
ordinance, rule, regulation, judgment, order, notice or decree applicable to
Triad or any of Triad's property or assets.

     4.   Covenants of Stockholder.  Subject to Section 7 hereof, the
          ------------------------
Stockholder agrees as follows:

          (a)  Without in any way limiting the Stockholder's right to vote the
Subject Shares in its sole discretion on any other matters that may be submitted
to a stockholder vote, consent or other approval (including by written consent),
at any meeting of the stockholders of the Company called upon to vote upon the
Merger and the Merger Agreement or at any adjournment thereof or in any other
circumstances upon which a vote, consent or other approval (including written
consent) with respect to the Merger and the Merger Agreement is sought, the
Stockholder shall vote (or cause to be voted) the Subject Shares (other than the
6.0% Convertible Subordinated Debentures which may not be voted prior to
conversion) (which number of shares may be greater or less than the number of
shares as of the date hereof):

                                       2
<PAGE>

          (i)  in favor of the Merger, the approval and adoption by the Company
of the Merger Agreement and approval of the other transactions contemplated by
the Merger Agreement; and

          (ii) against (A) any merger agreement or merger (other than the Merger
and the Merger Agreement), consolidation, combination, sale of substantially all
of the Company's assets, sale or issuance of securities of the Company or its
subsidiaries, reorganization, joint venture, recapitalization, dissolution,
liquidation or winding up of or by the Company or its subsidiaries and (B) any
amendment of the Company's Certificate of Incorporation or Bylaws or other
proposal or transaction involving the Company or any of its subsidiaries which
amendment or other proposal or transaction would or could reasonably be expected
to impede, frustrate, prevent, nullify or result in a breach of any covenant,
representation or warranty or any other obligation or agreement of the Company
under or with respect to, the Merger, the Merger Agreement or any of the
transactions contemplated by the Merger Agreement or by this Agreement.

          (b)  The Stockholder hereby agrees to convert the 6.0% Convertible
Subordinated Debentures immediately prior to the Effective Time (as defined in
the Merger Agreement).

          (c)  The Stockholder shall not, except as contemplated by this
Agreement, directly or indirectly, grant any proxies or powers of attorney with
respect to the Subject Shares, deposit the Subject Shares into a voting trust or
enter into a voting agreement with respect to the Subject Shares.

     5.   Certain Events. The Stockholder agrees that this Agreement and the
          --------------
obligations hereunder shall attach to the Subject Shares and shall be binding
upon any person or entity to which legal or beneficial ownership of such Subject
Shares shall pass, whether by operation of law or otherwise, including the
Stockholder's successors. In the event of any stock split, stock dividend,
merger, reorganization, recapitalization or other change in the capital
structure of the Company affecting the Company Common Stock, or the acquisition
of additional shares of Company Common Stock or other voting securities of the
Company by the Stockholder (whether by purchase, conversion or otherwise), the
number of Subject Shares listed in Schedule A beside the name of the Stockholder
                                   ----------
shall be adjusted appropriately and this Agreement and the obligations hereunder
shall attach to any additional or decreased shares of Company Common Stock or
other voting securities of the Company issued to or acquired or disposed of by
the Stockholder.

     6.   Assignment.  Neither this Agreement nor any of the rights, interests
          ----------
or obligations hereunder shall be assigned by the Stockholder, on the one hand,
without the prior written consent of Triad nor by Triad, on the other hand,
without the prior written consent of the Stockholder, except that Triad may
assign, in its sole discretion, any or all of its rights, interests and
obligations hereunder to any direct or indirect wholly owned subsidiary of
Triad. Subject to the preceding sentence, this Agreement will be binding upon,
inure to the benefit of and be enforceable by the parties and their respective
successors and assigns.

                                       3
<PAGE>

     7.   Termination.  This Agreement shall terminate, and the provisions
          -----------
hereof shall be of no further force or effect, upon the earlier of the
effectiveness of the Merger or the termination of the Merger Agreement in
accordance with its terms.

     8.   General Provisions.
          ------------------

          (a)  Amendments.  This Agreement may not be amended except by an
               ----------
instrument in writing signed by each of the parties hereto.

          (b)  Notice.  All notices, requests, claims, demands and other
               ------
communications hereunder shall be in writing and shall be deemed given if
delivered personally or sent by overnight courier (providing proof of delivery)
to Triad in accordance with Section 11.1 of the Merger Agreement and to the
Stockholder at its address set forth on the Company's stock ledger (or at such
other address for a party as shall be specified by like notice).

          (c)  Interpretation.  When a reference is made in this Agreement to a
               --------------
Section or Schedule, such reference shall be to a Section of or Schedule to this
Agreement unless otherwise indicated.  The headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.  Wherever the words "include," "includes" or
"including" are used in this Agreement, they shall be deemed to be followed by
the words "without limitation."

          (d)  Counterparts.  This Agreement may be executed in one or more
               ------------
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more of the counterparts have been signed by
each of the parties and delivered to the other parties.

          (e)  Entire Agreement; No Third Party Beneficiaries.  This Agreement
               ----------------------------------------------
(i) constitutes the entire agreement and supersedes all prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof and (ii) is not intended to confer upon any person other
than the parties hereto any rights or remedies hereunder.

          (f)  Governing Law.  This Agreement shall be governed by, and
               -------------
construed in accordance with the laws of the State of Delaware, regardless of
the laws that might otherwise govern under applicable principles of conflicts of
law thereof.

     9.   Enforcement.  The parties agree that irreparable damage would occur in
          -----------
the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement, this being in addition to any other
remedy to which they are entitled at law or in equity. Without limiting the
generality of the foregoing, the parties hereto expressly agree that the
obligations of the Stockholder set forth in Section 4 hereof shall be subject to
the foregoing provisions of this Section 9.

                                       4
<PAGE>

     10.  Public Announcements. Except as required by law, the Stockholder shall
          --------------------
not issue any press release or other public statement with respect to the
transactions contemplated by this Agreement and the Merger Agreement without the
prior written consent of Triad.

     11.  Severability.  In the event that any provision of this Agreement or
          ------------
the application thereof, becomes or is declared by a court of competent
jurisdiction to be illegal, void or unenforceable, the remainder of this
Agreement shall continue in full force and effect and the application of such
provision to other persons or circumstances will be interpreted so as to effect
the intent of the parties hereto. The parties further agree to replace such void
or unenforceable provision of this Agreement with valid and enforceable
provision that will achieve, to the fullest extent possible, the original intent
of the parties.

                                   * * * * *

                                       5
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first written above.

                                        TRIAD HOSPITALS, INC.

                                        By: /s/ James D. Shelton
                                            --------------------
                                            James D. Shelton
                                            Chairman and
                                              Chief Executive Officer

                                        Welsh, Carson, Anderson & Stowe VIII,
                                        L.P.

                                        By: /s/ Russell L. Carson
                                            ---------------------
                                            Russell L. Carson

                                       6
<PAGE>

                                  SCHEDULE A

                          Schedule of Share Ownership

Name                                         Shares

Welsh, Carson, Anderson &                    6,840,000 shares of common stock
  Stowe VIII, L.P.
                                             12,698,413 shares of common stock
                                             issuable upon conversion of $150.0
                                             million convertible subordinated
                                             debenture

<PAGE>

                                                                       SHEDULE B
                                                                       ---------

                           FORM OF IRREVOCABLE PROXY

          The undersigned stockholder of Quorum Health Group, Inc., a Delaware
corporation (the "Company"), hereby irrevocably (to the fullest extent permitted
by law) appoints and constitutes Triad Hospitals, Inc., a Delaware corporation
("Triad"), the attorney and proxy of the undersigned with full power of
substitution and resubstitution, to the full extent of the undersigned's rights
with respect to (i) all outstanding shares of capital stock of the Company owned
of record by the undersigned as of the date of this proxy, which shares are
specified on Schedule A to the Voting Agreement (as hereinafter defined), and
(ii) any and all other shares of capital stock of the Company which the
undersigned may acquire on or after the date hereof and which are Subject Shares
(as defined in the Voting Agreement). (The shares of the capital stock of the
Company referred to in clauses (i) and (ii) of the immediately preceding
sentence are collectively referred to as the "Shares.") Upon the execution
hereof, all prior proxies given by the undersigned with respect to any of the
Shares are hereby revoked, and the undersigned agrees that no subsequent proxies
will be given with respect to any of the Shares.

          This proxy is irrevocable, is coupled with an interest and is granted
in connection with the Voting Agreement, dated as of the date hereof, between
Triad and the undersigned (the "Voting Agreement"), and is granted in
consideration of Triad entering into the Agreement and Plan of Merger, dated as
of the date hereof, between Triad and the Company, as the same may be amended or
supplemented (the "Merger Agreement").

          The attorney and proxy named above will be empowered, and may exercise
this proxy, to vote the Shares at any time until the earlier to occur of the
valid termination of the Merger Agreement or the closing of the transactions
contemplated thereby at any meeting of the stockholders of the Company, however
called, or in connection with any solicitation of written consents from
stockholde rs of the Company:

2.   in favor of the Merger (as defined in the Merger Agreement), the approval
and adoption by the Company of the Merger Agreement and approval of the other
transactions contemplated by the Merger Agreement; and

3.   against (A) any merger agreement or merger (other than the Merger and the
Merger Agreement), consolidation, combination, sale of substantially all of the
Company's assets, sale or issuance of securities of the Company or its
subsidiaries, reorganization, joint venture, recapitalization, dissolution,
liquidation or winding up of or by the Company or its subsidiaries and (B) any
amendment of the Company's Certificate of Incorporation or Bylaws or other
proposal or transaction involving the Company or any of its subsidiaries which
amendment or other proposal or transaction would or could reasonably be expected
to impede, frustrate, prevent, nullify or result in a breach of any covenant,
representation or warranty or any other obligation or agreement of the Company
under or
<PAGE>

with respect to, the Merger, the Merger Agreement or any of the transactions
contemplated by the Merger Agreement or by this Agreement.

          This proxy shall be binding upon any person or entity to which legal
or beneficial ownership of the Subject Shares shall pass, whether by operation
of law or otherwise, including the Stockholder's successors.

          If any provision of this proxy or any part of any such provision is
held under any circumstances to be invalid or unenforceable in any jurisdiction,
then (a) such provision or part thereof shall, with respect to such
circumstances and in such jurisdiction, be deemed amended to conform to
applicable laws so as to be valid and enforceable to the fullest possible
extent, (b) the invalidity or unenforceability of such provision or part under
such circumstances and in such jurisdiction shall not affect the validity or
enforceability of such provision or part thereof under any other circumstances
or in any other jurisdiction, and (c) the invalidity or unenforceability of such
provision or part thereof shall not affect the validity or enforceability of the
remainder of such provision or the validity or enforceability of any other
provision of this proxy. Each provision of this proxy is separable from every
other provision of this proxy, and each part of each provision of this proxy is
separable from every other part of such provision.

                                       9
<PAGE>

          This proxy shall terminate upon the earlier of the valid termination
of the Merger Agreement or the closing of the transactions contemplated by the
Merger Agreement.

     Dated:  October 18, 2000.

                                                  By:
                                                      ----------------------

          NUMBER OF SHARES OF COMMON STOCK OF THE COMPANY OWNED OF RECORD AS OF
    THE DATE OF THIS PROXY:

19,538,413 common $150.0 million of convertible subordinated debentures

                                       10<PAGE>

                                                                    EXHIBIT 10.2
                                                                    ------------

                                                                October 18, 2000

Triad Hospitals Holdings, Inc.
13455 Noel Road
20th Floor
Dallas, TX  75240

               Re:  Project Quarterback -- Credit Facilities Commitment Letter
                    ----------------------------------------------------------

Ladies and Gentlemen:

          Triad Hospitals Holdings, Inc. ("you" or "Company" or "Borrower") has
                                           ---      -------      --------
advised Merrill Lynch Capital Corporation ("Merrill Lynch" or "we" or "us") that
                                            -------------      --      --
(i) Triad Hospitals, Inc., the parent of Company ("Triad"), intends to enter
                                                   -----
into a merger agreement (the "Merger Agreement") with a company previously
                              ----------------
identified to us and code-named Titans ("Target") pursuant to which Triad will
                                         ------
acquire (the "Acquisition") all of the capital stock of Target; (ii) immediately
              -----------
prior to the consummation of the Acquisition, Company will merge with and into
Triad, at which time the separate corporate existence of Company shall cease and
Triad shall continue as the surviving corporation; (iii) Triad will issue in
partial consideration for the Acquisition common equity of Triad as set forth in
the Merger Agreement (the "Equity Issuance"); (iv) Borrower will use a portion
                           ---------------
of the proceeds of the debt financings contemplated hereby to pay part of the
purchase price for the Acquisition; and (v) the sources and uses of the funds
necessary to consummate the Acquisition and the other transactions contemplated
hereby are set forth on Annex I to this Commitment Letter.
                        -------

          In addition, you have advised Merrill Lynch that in connection with
the consummation of the Acquisition, (a) Borrower will raise gross cash proceeds
of not less than $300.0 million from either (A) the issuance by it of $300.0
million of unsecured senior notes (the "Notes") all of which shall be due not
                                        -----
earlier than eight years from the date of issuance and have no scheduled
principal payments prior to maturity (the "Note Offering") or (B) the draw down
                                           -------------
under an unsecured senior interim loan (the "Interim Loan") which would be
                                             ------------
anticipated to be refinanced with debt securities substantially similar to the
Notes (the "Take-out Securities"); and (b) Borrower will enter into senior
            -------------------
secured credit facilities in the amount of $1,375.0 million (the "Senior Secured
                                                                  --------------
Credit Facilities" and, together with the Interim Loan, the "Credit
-----------------                                            ------
Facilities").

          In addition, you have advised us that, on the date of consummation of
the Acquisition (the "Closing Date"), Borrower will refinance its existing
                      ------------
senior credit facility and Target and its subsidiaries will repay all
indebtedness and preferred stock outstanding prior to the Closing Date and
terminate all commitments to make extensions of credit (such actions by
Borrower, Target and its subsidiaries, the "Refinancing") under their respective
                                            -----------
existing indebtedness (all such debt of Borrower, Target and its subsidiaries,
the "Existing Indebtedness").
     ---------------------

          The Acquisition, the Equity Issuance, the Note Offering (if
consummated), the Refinancing and the entering into and borrowings under the
Credit Facilities by the parties herein described are herein referred to as the
"Transactions".
 ------------
<PAGE>

          You have requested that Merrill Lynch commit to provide the Credit
Facilities to finance the Acquisition and the Refinancing and to pay certain
related fees and expenses.

          Accordingly, subject to the terms and conditions set forth below,
Merrill Lynch hereby agrees with you as follows:

          1.   Commitment.  Merrill Lynch hereby commits to provide to Borrower
               ----------
the Senior Secured Credit Facilities upon the terms and subject to the
conditions set forth or referred to herein, in the Fee Letter (the "Fee Letter")
                                                                    ----------
dated the date hereof and delivered to you, and in the Senior Secured Credit
Facilities Summary of Terms and Conditions attached hereto (and incorporated by
reference herein) as Exhibit A (the "Senior Secured Term Sheet").  Merrill Lynch
                     ---------       -------------------------
hereby also commits to provide to Borrower the Interim Loan upon the terms and
subject to the conditions set forth or referred to herein, in the Fee Letter,
and in the Interim Loan Summary of Terms and Conditions attached hereto (and
incorporated by reference herein) as Exhibit B (the "Interim Loan Term Sheet"
                                     ---------       -----------------------
and, together with the Senior Secured Term Sheet, the "Term Sheets").  To the
                                                       -----------
extent that an underwriting or purchase agreement is entered into in respect to
the Note Offering, the commitments hereunder shall be terminated on the date of
execution thereof in an amount equal to the expected aggregate gross proceeds
from the Notes covered thereby, first, in respect of the Interim Loan, and
                                -----
second, in respect of the Senior Secured Credit Facilities (and first to the
------
Asset Sale Facility thereunder and thereafter in amounts among the other
tranches thereof as determined by Merrill Lynch in consultation with Borrower).

          2.   Syndication.  We reserve the right and intend, prior to or after
               -----------
the execution of the definitive documentation for the Credit Facilities (the

"Credit Documents"), to syndicate all or a portion of our commitments to one or
-----------------
more financial institutions (together with Merrill Lynch, the "Lenders").  Our
                                                               -------
commitment hereunder is subject to Merrill Lynch (or one of its affiliates)
acting as a co-lead arranger and co-book-runner for the Senior Secured Credit
Facilities and co-lead arranger and sole book-runner for the Interim Loan.  We
(or one of our affiliates) will manage all aspects of the syndication (in
consultation with you), including decisions as to the selection of potential
Lenders to be approached and when they will be approached, when their
commitments will be accepted, which Lenders will participate and the final
allocations of the commitments among the Lenders (which are likely not to be pro
                                                                             ---
rata across facilities among Lenders), and we will perform all functions and
----
exercise all authority as customarily performed and exercised in such
capacities, including selecting counsel for the Lenders and negotiating the
Credit Documents.  Notwithstanding anything herein to the contrary, Borrower may
designate other financial institutions reasonably acceptable to Merrill Lynch to
function in connection with the underwriting and syndication of the Credit
Facilities with titles and responsibilities to be designated by Borrower and
reasonably acceptable to Merrill Lynch.  Subject to the foregoing, any other
agent or arranger titles (including co-agents) awarded to other Lenders are
subject to our prior approval and shall not entail any role with respect to the
matters referred to in this paragraph without our prior consent.  You agree that
no Lender will receive compensation outside the terms contained herein and in
the Fee Letter in order to obtain its commitment to participate in the Credit
Facilities.  We may select (with your consent, not to be unreasonably withheld,
delayed or conditioned) a Lender to act as an administrative agent (the

"Administrative Agent") for each of the Senior Secured Credit Fa-
---------------------
<PAGE>

                                      -3-

cilities and the Interim Loan to perform such ministerial and administrative
functions as we shall reasonably designate.

          You understand that we intend to commence the separate syndication of
each of the Senior Secured Credit Facilities and the Interim Loan promptly, and
you agree actively to assist us in achieving a timely syndication that is
satisfactory to us.  The syndication efforts will be accomplished by a variety
of means, including direct contact during the syndication between senior
management and advisors of Borrower and Target on the one hand, and the proposed
Lenders on the other hand and Borrower hosting, with Merrill Lynch, meetings
with prospective Lenders at such times and places as we may reasonably request.
You agree to, upon our request, (a) provide, and cause your advisors to provide,
and use your reasonable best efforts to have Target provide, to us all
information reasonably requested by us to successfully complete the syndication,
including the information and projections (including updated projections)
contemplated hereby, and (b) assist, and cause your advisors to assist, and use
your reasonable best efforts to have Target assist, us in the preparation of a
Confidential Information Memorandum and other marketing materials (the contents
of which you shall be solely responsible for) to be used in connection with the
syndication, including making available representatives of Target.  You also
agree to use your commercially reasonable best efforts to ensure that our
syndication efforts benefit materially from your existing lending relationships.

          3.   Fees.  As consideration for our commitment hereunder and our
               ----
agreement to arrange, manage, structure and syndicate the Credit Facilities, you
agree to pay to us the fees as set forth in the Fee Letter.

          4.   Conditions.  Merrill Lynch's commitment hereunder is subject to
               ----------
the conditions set forth elsewhere herein and in the Term Sheets.  For purposes
of this Commitment Letter and the Term Sheets, the "subsidiaries" of Borrower
shall be deemed to include those who will become subsidiaries of Borrower in
connection with the Transactions.

          Our commitment hereunder is also subject to (a) no disruption or
adverse change (or development that could reasonably be expected to result in an
adverse change) shall have occurred and be continuing in or affecting the loan
syndication or financial, banking or capital market conditions generally from
those in effect on the date hereof that, individually or in the aggregate in our
reasonable judgment would materially adversely affect our ability to syndicate
the Credit Facilities or the ability of Borrower to effect the sale of the Take-
out Securities; (b) we shall be satisfied that, after the date hereof and prior
to and during the syndication of the Credit Facilities, none of Borrower or any
of its subsidiaries shall have syndicated or issued, attempted to syndicate or
issue, announced or authorized the announcement of, or engaged in discussions
concerning the syndication or issuance of any debt facility or debt security of
any of them, including renewals thereof, other than the Credit Facilities and
the Notes and other than the amendment of Borrower's existing senior credit
facility to add a delayed draw term loan tranche of $200 million; (c) none of
the Information and Projections (each as defined below in Section 5 hereof)
shall be misleading or incorrect in any material respect taken as a whole, in
light of the circumstances under which such statements were made; and (d) the
consummation of the Transactions not violating, conflicting with or resulting in
a breach of, or constituting a default under (or resulting in an event which,
with notice or lapse of time or both, would
<PAGE>

                                      -4-

constitute a default) under any note, bond, mortgage, indenture, deed of trust,
concession, lease, contract or other instrument, obligation or agreement to
which Borrower or any of its subsidiaries is a party of by which Borrower or any
of its subsidiaries or any of their respective assets may be bound or affected.

          5.   Information and Investigations.  You hereby represent and
               ------------------------------
covenant that (a) all information and data (excluding financial projections)
that have been or will be made available by you or any of your representatives
or advisors to us or any Lender (whether prior to or on or after the date
hereof) in connection with the Transactions, taken as a whole (the

"Information"), is (or with respect to Information concerning Target, to the
 -----------
best of Borrower's knowledge, is) and will be (or with respect to Information
concerning Target, to the best of Borrower's knowledge, will be) complete and
correct in all material respects and does not (or with respect to Information
concerning Target, to the best of Borrower's knowledge, does not) and will not
(or with respect to Information concerning Target, to the best of Borrower's
knowledge, will not), taken as a whole, contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the
statements contained therein not misleading in light of the circumstances under
which such statements are made, and (b) all financial projections concerning
Borrower and its subsidiaries and the transactions contemplated hereby (the
"Projections") that have been made or will be prepared by or on behalf of you or
------------
any of your representatives or advisors and that have been or will be made
available to us or any Lender in connection with the transactions contemplated
hereby have been and will be prepared in good faith based upon assumptions
believed by you to be reasonable.  You agree to supplement the Information and
the Projections from time to time until the Closing Date and, if requested by
us, for a reasonable period thereafter necessary to complete the syndication of
the Credit Facilities so that the representation and covenant in the preceding
sentence remain correct in all material respects.  In syndicating the Credit
Facilities we will be entitled to use and rely primarily on the Information and
the Projections without responsibility for independent check or verification
thereof.

          6.   Indemnification.  You agree (i) to indemnify and hold harmless
               ---------------
Merrill Lynch and each of the other Lenders and their respective officers,
directors, employees, affiliates, agents and controlling persons (Merrill Lynch
and each such other person being an "Indemnified Party") from and against any
                                     -----------------
and all losses, claims, damages, costs, expenses and liabilities, joint or
several, to which any Indemnified Party may become subject under any applicable
law, or otherwise related to or arising out of or in connection with this
Commitment Letter, the Fee Letter, the Term Sheets, the Credit Facilities, the
loans under the Credit Facilities, the use of proceeds of any such loan, any of
the Transactions and the performance by any Indemnified Party of the services
contemplated hereby and will reimburse each Indemnified Party for any and all
reasonable expenses (including reasonable counsel fees and expenses) as they are
incurred in connection with the investigation of or preparation for or defense
of any pending or threatened claim or any action or proceeding arising
therefrom, whether or not such Indemnified Party is a party and whether or not
such claim, action or proceeding is initiated or brought by or on behalf of you,
Target, or any of your or Target's respective affiliates and whether or not any
of the Transactions are consummated or this Commitment Letter is terminated,
except to the extent resulting solely from such Indemnified Party's bad faith,
gross negligence or willful misconduct and (ii) not to assert any claim against
any Indemnified Party for consequential, punitive or exemplary damages on any
theory of
<PAGE>

                                      -5-

liability in connection in any way with the transactions described in or
contemplated by this Commitment Letter.

          You agree that, without our prior written consent, neither you nor any
of your affiliates or subsidiaries will settle, compromise or consent to the
entry of any judgment in any pending or threatened claim, action or proceeding
in respect of which indemnification has been or could be sought under the
indemnification provisions hereof (whether or not any other Indemnified Party is
an actual or potential party to such claim, action or proceeding), unless such
settlement, compromise or consent (i) includes an unconditional written release
in form and substance satisfactory to the Indemnified Parties of each
Indemnified Party from all liability arising out of such claim, action or
proceeding and (ii) does not include any statement as to or an admission of
fault, culpability or failure to act by or on behalf of any Indemnified Party.
You will not be obligated to indemnify an Indemnified Party with respect to any
loss, claim, damage, or liability settled, compromised or consented to without
your prior written consent (not to be unreasonably withheld, delayed or
conditioned).

          In the event that an Indemnified Party is requested or required to
appear as a witness in any action brought by or on behalf of or against you or
any of your subsidiaries or affiliates in which such Indemnified Party is not
named as a defendant, you agree to reimburse such Indemnified Party for all
expenses incurred by it in connection with such Indemnified Party's appearing
and preparing to appear as such a witness, including, without limitation, the
fees and expenses of its legal counsel.

          7.   Expenses.  You agree to reimburse us and our affiliates for our
               --------
and their reasonable expenses upon our request made from time to time
(including, without limitation, all reasonable due diligence investigation
expenses, fees of consultants engaged with your consent (not to be unreasonably
withheld), syndication expenses (including printing, distribution, and bank
meetings), appraisal and valuation fees and expenses, travel expenses,
duplication fees and expenses, audit fees, search fees, filing and recording
fees and the reasonable fees, disbursements and other charges of counsel (and
any local counsel) and any sales, use or similar taxes (and any additions to
such taxes) related to any of the foregoing) incurred in connection with the
negotiation, preparation, execution and delivery, waiver or modification,
collection and enforcement of this Commitment Letter, the Term Sheets, the Fee
Letter and the Credit Documents and the security arrangements (if any) in
connection therewith and whether or not such fees and expenses are incurred
before or after the date hereof or any loan documentation is entered into or the
Transactions are consummated or any extensions of credit are made under the
Credit Facilities or this Commitment Letter is terminated or expires, except
that Borrower shall have no obligation to reimburse Merrill Lynch for any such
expenses relating to any offering of Senior Notes which is consummated to the
extent excluded from being for the account of Borrower in any underwriting or
purchase agreement relating thereto that is executed and delivered by Borrower
and Merrill Lynch.

          8.   Confidentiality.  This Commitment Letter, the Term Sheets, the
               ---------------
contents of any of the foregoing and our and/or our affiliates' activities
pursuant hereto or thereto are confidential and shall not be disclosed by or on
behalf of you or any of your affiliates to any person without our prior written
consent, except that you may disclose this Commitment Letter and the Term Sheets
(i) to
<PAGE>

                                      -6-

your and Target's and your and its respective officers, directors, employees and
advisors, and then only in connection with the Transactions and on a
confidential need-to-know basis, (ii) to ratings agencies in connection with the
Credit Facilities or the Senior Notes, and (iii) as you are required to make by
applicable law or compulsory legal process (based on the advice of legal
counsel); provided, however, that in the event of any such compulsory legal
          --------  -------
process you agree to use best efforts to give us prompt notice thereof and to
cooperate with us in securing a protective order in the event of compulsory
disclosure and that any disclosure made pursuant to public filings shall be
subject to our prior review. You agree that you will permit us to review and
approve any reference to any of us or any of our affiliates in connection with
the Credit Facilities or the transactions contemplated hereby contained in any
press release or similar public disclosure prior to public release. You agree
that we and our affiliates may share information concerning you, Target and your
and Target's respective subsidiaries and affiliates solely among ourselves on a
confidential and "need-to-know" basis solely in connection with the performance
of our services hereunder and the evaluation and consummation of financings and
Transactions contemplated hereby.

          9.   Termination.  Our commitment hereunder is based upon the
               -----------
financial and other information regarding Target previously provided to us.  In
the event that by means of continuing review or otherwise we become aware of or
discover material new information or developments concerning conditions or
events previously disclosed to us that is inconsistent in any material adverse
respect with the Projections or the Information provided to us prior to the date
hereof, or if any event or condition has occurred or become known that in our
reasonable judgment has had or could reasonably be expected to have a material
adverse effect on the business, operations, financial condition, liabilities
(contingent or otherwise) or prospects of Borrower and its subsidiaries taken as
a whole (after giving effect to the Transactions) since December 31, 1999, this
Commitment Letter and Merrill Lynch's commitment hereunder shall terminate upon
written notice by Merrill Lynch.  In addition, Merrill Lynch's commitment
hereunder shall terminate in its entirety (A) on June 30, 2001 if the Credit
Documents are not executed and delivered by Borrower and the Lenders by such
date and (B) on the date of execution and delivery of the Credit Documents by
Borrower and the Lenders.  Notwithstanding the foregoing, the provisions of
Sections 6, 7, 8 and 11 hereof shall survive any termination pursuant to this
Section 9.

          10.  Assignment; etc.  This Commitment Letter and our commitment
               ---------------
hereunder shall not be assignable by any party hereto without the prior written
consent of the other parties hereto, and any attempted assignment shall be void
and of no effect; provided, however, that nothing contained in this Section 10
                  --------  -------
shall prohibit us (in our sole discretion) from (i) performing any of our duties
hereunder through any of our affiliates, and you will owe any related duties
(including those set forth in Section 2 above) to any such affiliate, and (ii)
granting (in consultation with you) participations in, or selling (in
consultation with you) assignments of all or a portion of, the commitments or
the loans under the Credit Facilities pursuant to arrangements satisfactory to
us.  This Commitment Letter is solely for the benefit of the parties hereto and
does not confer any benefits upon, or create any rights in favor of, any other
person.

          11.  Governing Law; Waiver of Jury Trial.  This Commitment Letter
               -----------------------------------
shall be governed by, and construed in accordance with, the laws of the State of
New York.  Each of the par
<PAGE>

                                      -7-

ties hereto waives all right to trial by jury in any action, proceeding or
counterclaim (whether based upon contract, tort or otherwise) related to or
arising out of any of the Transactions or the other transactions contemplated
hereby, or the performance by us or any of our affiliates of the services
contemplated hereby.

          12.  Amendments; Counterparts; etc.  No amendment or waiver of any
               -----------------------------
provision hereof or of the Term Sheets shall be effective unless in writing and
signed by the parties hereto and then only in the specific instance and for the
specific purpose for which given.  This Commitment Letter, the Engagement
Letter, the Term Sheets and the Fee Letter are the only agreements between the
parties hereto with respect to the matters contemplated hereby and thereby and
set forth the entire understanding of the parties with respect thereto.  This
Commitment Letter 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 taken together shall constitute one
and the same agreement.  Delivery of an executed counterpart by telecopier shall
be effective as delivery of a manually executed counterpart.

          13.  Public Announcements; Notices.  Following your public
               -----------------------------
announcement of the Transactions, we may, subject to your prior consent (not to
be unreasonably withheld, delayed or conditioned) at our expense, publicly
announce as we may choose the capacities in which we or our affiliates have
acted hereunder.  Any notice given pursuant hereto shall be mailed or hand
delivered in writing, if to (i) you, at your address set forth on page one
hereof, with a copy to Morton A. Pierce, Esq., at Dewey Ballantine LLP, 1301
Avenue of the Americas, New York, New York 10019; and (ii) Merrill Lynch, at
World Financial Center, North Tower, 250 Vesey Street, New York, New York 10281,
Attention:  Christopher J. Birosak, with a copy to Michael E. Michetti, Esq., at
Cahill Gordon & Reindel, 80 Pine Street, New York, New York 10005.

                           (Signature Page Follows)
<PAGE>

                                      -8-

          Please confirm that the foregoing correctly sets forth our agreement
of the terms hereof and the Fee Letter by signing and returning to Merrill Lynch
the duplicate copy of this letter and the Fee Letter enclosed herewith.  Unless
we receive your executed duplicate copies hereof and thereof by 5:00 p.m., New
York City time, on October 18, 2000, our commitment hereunder will expire at
such time.

          We are pleased to have this opportunity and we look forward to working
with you on this transaction.

                                       Very truly yours,
                                       MERRILL LYNCH CAPITAL CORPORATION

                                       By: /s/ Christopher Birosak
                                           -----------------------
                                           Christopher Birosak
                                           Managing Director

Accepted and agreed to as of the date first written above:

TRIAD HOSPITALS HOLDINGS, INC.

By: /s/ Burke Whitman
    ----------------------
    Burke Whitman
    Executive Vice President
    Chief Financial Officer
    and Treasurer
<PAGE>

                                                                         Annex I

                           Sources and Uses of Funds
                           -------------------------
                              (in $ in millions)
                              ------------------

<TABLE>
<CAPTION>
         Sources                                                  Uses
         -------                                                  ----
<S>                                          <C>
Term Loan Facilities     $1,125.0            Purchase price of equity of Target/1/  $1,457.3
Revolving Facility/2/       205.3            Refinance Debt                          1,133.7
Notes or Interim Loan       300.0            Severance Costs                            25.0
Equity Issuance           1,148.9            Qui Tam Settlement                         91.0
                                             Estimated fees and expenses                72.3
                         --------                                                   --------
     Total Sources       $2,779.3            Total Uses                             $2,779.3
                         ========                                                   ========
</TABLE>

____________________
/1/  Assumes a purchase price for each share of Target stock of $3.50 and 0.4107
     shares of Triad stock, a 78.8% stock, 21.2% cash transaction and a closing
     as if it had occurred as of December 31, 2000.

/2/  $250.0 of commitments at closing.
<PAGE>

CONFIDENTIAL                                                           EXHIBIT A
                                                                       ---------
                        SENIOR SECURED CREDIT FACILITIES
                        --------------------------------

                      SUMMARY OF TERMS AND CONDITIONS/1/

Borrower:                  Triad Hospitals Holdings, Inc. ("Borrower").
                                                            --------

Co-Book-Runner and         Merrill Lynch & Co. ("Merrill Lynch") together with
                                                 -------------
 Co-Lead Arrangers:        one or more other financial institutions designated
                           by Borrower and reasonably acceptable to Merrill
                           Lynch (together, the "Lead Arrangers").
                                                 --------------
Syndication Agent:         Merrill Lynch.

Administrative Agent:      A Lender or other financial institution to be
                           selected by Borrower and reasonably acceptable to the
                           Lead Arrangers (the "Administrative Agent").
                                                ---------------------

Lenders:                   Merrill Lynch Capital Corporation (or one of its
                           affiliates) and a syndicate of financial institutions
                           (the "Lenders") arranged by the Lead Arrangers and
                                 -------
                           reasonably acceptable to Borrower (including
                           financial institutions designated by Borrower and
                           reasonably acceptable to the Lead Arrangers).

Credit Facilities:         Senior secured credit facilities (the "Credit
                                                                  ------
                           Facilities") in an aggregate principal amount of up
                           ----------
                           to $1,375,000,000, such Credit Facilities comprising:

                              (A)  Term Loan Facilities. Term loan facilities in
                                   --------------------
                              an aggregate principal amount of $1,125,000,000
                              (the "Term Loan Facilities"), such aggregate

                              principal amount to be allocated among (i) a Term
                              of $400,000,000 (the "Term Loan A Facility"),
                                                     --------------------
                              (ii) an Asset Sale Facility in an aggregate
                              principal amount of $225,000,000 (the "Asset Sale
                                                                    -----------
                              Facility"), (iii) a Term
                              ---------

_______________________

Capitalized terms used herein and notes defeined shall have the meaning assigned
to such terms in the attached Credit Facilities Commitment Letter (the
"Commitment Letter").
------------------

                               [SENIOR SECURED]
<PAGE>

                                      -2-

                         Loan B Facility in an aggregate principal amount of
                         $250,000,000 (the "Term Loan B Facility"), and (iv) a
                                            --------------------
                         Term Loan C Facility in an aggregate principal amount
                         of $250,000,000 (the "Term Loan C Facility"). Loans
                                               --------------------
                         under the Term Loan Facilities are herein referred to
                         as "Term Loans".
                             ----------

                         (B)  Revolving Credit Facility. A reducing revolving
                              -------------------------
                         credit facility in an aggregate principal amount of
                         $250,000,000 (the "Revolving Facility"). Loans under
                                            ------------------
                         the Revolving Facility are herein referred to as
                         "Revolving Loans"; the Term Loans and the Revolving
                          ---------------
                         Loans are herein referred to collectively as "Loans".
                                                                       -----
                         An amount to be agreed of the Revolving Facility will
                         be available as a letter of credit subfacility and as a
                         swing line subfacility.

Documentation:         Usual for facilities and transactions of this type and
                       reasonably acceptable to Borrower and the Lenders. The
                       documentation for the Credit Facilities will include,
                       among others, a credit agreement (the "Credit
                                                              ------
                       Agreement"), guarantees and appropriate pledge, security
                       ---------
                       interest, mortgage and other collateral documents
                       (collectively, the "Credit Documents"). Borrower and the
                                           ----------------
                       Guarantors (as defined below under "Guarantors") are
                       herein referred to as the "Credit Parties" and
                                                  --------------
                       individually referred to as a "Credit Party".
                                                      ------------

Transactions:          As described in the Commitment Letter.

Availability/Purpose:  (A)  Term Loan Facilities.  Term Loans will be
                            --------------------
                       available to finance the Acquisition and the Refinancing
                       and to pay related fees and expenses, subject to the
                       terms and conditions set forth in the Credit Documents,
                       on the date of consummation of the Acquisition in one
                       draw (the "Closing Date"). Term Loans repaid or prepaid
                                  ------------
                       may not be reborrowed.

                       (B)  Revolving Facility.  The Revolving Facility will be
                           ------------------
                       available for the purposes described above and for
                       working capital and general corporate purposes on a fully
                       revolving basis, subject to the terms and conditions set
                       forth in the Credit Documents, in the form of revolving
                       loans, swing line loans and letters of credit on and
                       after the Closing Date until the date that is six years
                       after the Closing Date (the "R/C Maturity Date").
                                                    -----------------

                               [SENIOR SECURED]
<PAGE>

                                      -3-

Guarantors:         Each of Borrower's direct and indirect wholly-owned domestic
                    subsidiaries existing on the Closing Date or thereafter
                    created or acquired and each other direct or indirect
                    subsidiary (whether or not wholly-owned) of Borrower that
                    guarantees any other debt or other obligation of Borrower or
                    any of its subsidiaries shall unconditionally guarantee, on
                    a joint and several basis, all obligations of Borrower under
                    the Credit Facilities and (to the extent relating to the
                    Loans as designated therein) under each interest rate
                    protection agreement entered into with a Lender or an
                    affiliate of a Lender. Each guarantor of any of the Credit
                    Facilities is herein referred to as a "Guarantor" and its
                                                           ---------
                    guarantee is referred to herein as a "Guarantee".
                                                          ---------

Security:           The Credit Facilities, the Guarantees, and (to the extent
                    relating to the Loans as designated therein) the obligations
                    of Borrower under each interest rate protection agreement
                    entered into with a Lender or any affiliate of a Lender will
                    be secured by (A) a perfected lien on, and pledge of, all of
                    the capital stock and intercompany notes of each of the
                    direct and indirect subsidiaries of Borrower existing on the
                    Closing Date or thereafter created or acquired which capital
                    stock or intercompany notes are owned by Borrower or any of
                    its wholly owned subsidiaries, and (B) a perfected lien on,
                    and security interest in, all of the tangible and intangible
                    properties and assets (including all contract rights, real
                    property interests (other than real property interests of
                    Target), trademarks, trade names, equipment and proceeds of
                    the foregoing) of each Credit Party (collectively, the
                    "Collateral"), except in each case for those properties and
                     ----------
                    assets as to which the Lead Arrangers shall determine in its
                    sole discretion that the costs of obtaining such security
                    interest are excessive in relation to the value of the
                    security to be afforded thereby (it being understood that
                    none of the foregoing shall be subject to any other liens or
                    security interests, except for customary exceptions and
                    others to be agreed upon). All such security interests will
                    be created pursuant to documentation reasonably satisfactory
                    in all respects to the Lead Arrangers, and on the Closing
                    Date, such security interests shall have become perfected
                    (or arrangements for the perfection thereof reasonably
                    satisfactory to the Lead Arrangers shall have been made) and
                    the Lead Arrangers shall have received reasonably
                    satisfactory evidence as to the enforceability and priority
                    thereof.

                               [SENIOR SECURED]
<PAGE>

                                      -4-

Termination of Commitments:        The commitments in respect of the Credit
                                   Facilities (including pursuant to the
                                   Commitment Letter) will terminate in their
                                   entirety on June 30, 2001 if the initial
                                   funding under the Credit Facilities does not
                                   occur on or prior to such date.

Final Maturity:                    (A)  Term Loan Facilities. The Term Loan A
                                        --------------------
                                   Facility will mature on the sixth anniversary
                                   of the Closing Date, the Asset Sale Facility
                                   will mature on the second anniversary of the
                                   Closing Date, the Term Loan B Facility will
                                   mature on the seventh anniversary of the
                                   Closing Date and the Term Loan C Facility
                                   will mature on the seven and one-half
                                   anniversary of the Closing Date.

                                   (B)  Revolving Facility. The Revolving
                                        ------------------
                                   Facility will mature on the R/C Maturity
                                   Date.

Amortization Schedule:             The Term Loan A Facility will amortize on a
                                   quarterly basis (beginning with six months
                                   after the Closing Date) in amounts to be
                                   agreed.

                                   The Asset Sale Facility will amortize from
                                   net cash proceeds of asset sales as they
                                   occur with the balance paid in a single
                                   bullet payment at final maturity.

                                   The commitments under the Revolving Facility
                                   will reduce after the Closing Date pursuant
                                   to a schedule to be agreed upon (but such
                                   mandatory reductions will not result in the
                                   commitments being reduced below an amount to
                                   be agreed).

                                   Each of the Term Loan B Facility and the Term
                                   Loan C Facility will amortize at a rate of
                                   1.00% per annum on a quarterly basis
                                         --- -----
                                   (beginning with six months after the Closing
                                   Date) for the first six and six and one-half
                                   years, respectively, after the Closing Date
                                   with the balance paid in four equal quarterly
                                   installments thereafter.

Letters of Credit:                 Letters of credit under the Revolving
                                   Facility ("Letters of Credit") will be issued
                                              -----------------
                                   by a Lender to be agreed by the Lead
                                   Arrangers and Borrower (in such capacity, the
                                   "L/C Lender"). The issuance of all Letters of
                                    ----------
                                   Credit shall be subject to the customary
                                   procedures of the L/C Lender.

Letter of Credit Fees:             Letter of Credit fees will be payable for the
                                   account of the Revolving Facility Lenders on
                                   the daily average undrawn

                               [SENIOR SECURED]
<PAGE>

                                      -5-

                                   face amount of each Letter of Credit at a
                                   rate per annum equal to the applicable margin
                                        --- -----
                                   for Revolving Loans that are Euro LIBOR rate
                                   loans in effect at such time, which fees
                                   shall be paid quarterly in arrears. In
                                   addition, an issuing fee on the face amount
                                   of each Letter of Credit equal to 0.250% per
                                                                            ---
                                   annum shall be payable to the L/C Lender for
                                   -----
                                   its own account, which fee shall also be
                                   payable quarterly in arrears.

Interest Rates and Fees:           Interest rates and fees in connection with
                                   the Credit Facilities will be as specified on
                                   Annex I attached hereto.
                                   -------

Default Rate:                      Overdue principal, interest and other amounts
                                   shall bear interest at a rate per annum equal
                                                                 --- -----
                                   to 2% in excess of the applicable interest
                                   rate (including applicable margin).

Mandatory Prepayments/             Subject to the next paragraph, the Credit
Reductions in Commitments:         Facilities will be required to be prepaid
                                   with (a) 75% (50% after the Asset Sale
                                   Facility has been repaid in full) of annual
                                   Excess Cash Flow (to be defined), (b) 100% of
                                   the net cash proceeds (including insurance
                                   proceeds) of asset sales and other asset
                                   dispositions by Borrower or any of its
                                   subsidiaries (subject to baskets and
                                   exceptions to be agreed upon (including
                                   exclusions for (i) amounts reinvested within
                                   12 months and (ii) an annual amount per annum
                                   to be agreed)), (c) 100% of the net cash
                                   proceeds of the issuance or incurrence of
                                   debt or of any sale and lease-back by
                                   Borrower or any of its subsidiaries (subject
                                   to baskets and exceptions to be agreed upon),
                                   and (d) 50% (or 100% so long as the Asset
                                   Sale Facility is outstanding) of the net cash
                                   proceeds from any issuance of equity
                                   securities in any public offering or private
                                   placement or from any capital contribution
                                   (subject to baskets and exceptions to be
                                   agreed upon); provided, however, that there
                                                 --------  -------
                                   shall be no such obligation to prepay the
                                   Credit Facilities with Excess Cash Flow as
                                   described in the foregoing clause (a) so long
                                   as the Total Leverage Ratio is less than
                                   3.25:1.0.

                                   The proceeds of the Notes and of any equity
                                   issuance shall be applied to reduce to zero
                                   the commitments in respect of or, if after
                                   the Closing Date, to reduce to zero the
                                   funded amount of, first, the Interim Loan,
                                                     -----
                                   and second, the Credit Facilities.
                                       ------

                               [SENIOR SECURED]
<PAGE>

                                     -6-

                              Mandatory prepayments to be applied to the Credit
                              Facilities will be applied first to the Asset Sale
                              Facility and after it has been repaid in full pro
                                                                            ---
                              rata among the remaining Term Loan Facilities
                              ----
                              based on the aggregate principal amount of Term
                              Loans then outstanding under each such Term Loan
                              Facility. Any application to any Term Loan
                              Facility shall be applied pro rata to the
                                                        --- ----
                              remaining scheduled amortization payments in
                              respect thereof. Notwithstanding the foregoing,
                              any holder of Term Loans under the Term Loan B
                              Facility or Term Loan C Facility may, to the
                              extent that Term Loans are then outstanding under
                              the Term Loan A Facility, elect not to have
                              mandatory prepayments applied to such holder's
                              Term Loans under the Term Loan B Facility or Term
                              Loan C Facility, in which case the aggregate
                              amount so declined shall be applied to the
                              remaining scheduled amortization payments under
                              the Term Loan A Facility pro rata. To the extent
                                                       --- ----
                              that the amount to be applied to the prepayment of
                              Term Loans exceeds the aggregate amount of Term
                              Loans then outstanding, such excess shall be
                              applied to the Revolving Facility to permanently
                              reduce the commitments thereunder (first pro rata
                              to scheduled reductions and thereafter the
                              remaining commitments).

                              Revolving Loans will be immediately prepaid to the
                              extent that the aggregate extensions of credit
                              under the Revolving Facility exceed the
                              commitments then in effect under the Revolving
                              Facility. To the extent that the amount to be
                              applied to the repayment of the Revolving Loans
                              exceeds the amount thereof then outstanding,
                              Borrower shall cash collateralize outstanding
                              Letters of Credit.

Voluntary Prepayments/        (A)  Term Loan Facilities. Term Loans may be
                                   --------------------
Reductions in Commitments:    prepaid at any time in whole or in part at the
                              option of Borrower, in a minimum principal amount
                              and in multiples to be agreed upon, without
                              premium or penalty (except, in the case of LIBOR
                              borrowings, breakage costs related to prepayments
                              not made on the last day of the relevant interest
                              period). Voluntary prepayments will be applied
                              first to the Asset Sale Facility and after it has
                              been repaid in full pro rata among the remaining
                                                  --- ----
                              Term Loan Facilities based on the aggregate
                              principal amount of Term Loans then outstanding
                              under each such Term Loan Facility. Any
                              application to (x) the Term Loan A Facility shall
                              be applied pro rata to the re-
                                         --- ----

                               [SENIOR SECURED]
<PAGE>

                                      -7-

                              maining scheduled amortization payments
                              thereunder, and (y) the Term Loan B Facility or
                              Term Loan C Facility shall be applied to the
                              remaining scheduled amortization payments in
                              respect thereof pro rata among the amortization
                              payments in the last year prior to final maturity
                              and thereafter in inverse order of maturity.

                              (B)  Revolving Facility. The unutilized portion of
                                   ------------------
                              the commitments under the Revolving Facility may
                              be reduced and loans under the Revolving Facility
                              may be repaid at any time, in each case, at the
                              option of Borrower, in a minimum principal amount
                              and in multiples to be agreed upon, without
                              premium or penalty (except, in the case of LIBOR
                              borrowings, breakage costs related to prepayments
                              not made on the last day of the relevant interest
                              period).

Conditions to Effectiveness   The effectiveness of the credit agreement and the
  and to Initial Loans:       making of the initial Loans under the Credit
                              Facilities shall be subject to conditions
                              precedent that are usual for facilities and
                              transactions of this type, to those specified
                              herein and in the Commitment Letter and to such
                              additional conditions precedent as may reasonably
                              be required by the Lead Arrangers (all such
                              conditions to be satisfied in a manner reasonably
                              satisfactory to the Lead Arrangers and the Lenders
                              or the Required Lenders (as the case may be) (as
                              defined below under "Required Lenders")),
                              including, but not limited to, execution and
                              delivery of the Credit Documents acceptable in
                              form and substance to the Lenders by each Credit
                              Party party thereto prior to the Closing Date;
                              delivery of reasonably satisfactory borrowing
                              certificates and other customary closing
                              certificates; receipt of valid security interests
                              as contemplated hereby; absence of defaults,
                              prepayment events or creation of liens under debt
                              instruments or other material agreements as a
                              result of the transactions contemplated hereby;
                              absence of material litigation; evidence of
                              authority; compliance with applicable laws and
                              regulations in all material respects; delivery of
                              reasonably satisfactory legal opinions; and
                              adequate insurance.

                              The making of the initial Loans will be subject to
                              the following conditions:

                               [SENIOR SECURED]
<PAGE>

                         (A)  The delivery, on or prior to the Closing Date, of
                              a certificate on behalf of Borrower from the chief
                              financial officer of Borrower and in form and
                              substance reasonably satisfactory to the Lead
                              Arrangers with respect to the solvency (on a
                              consolidated basis) of each Credit Party
                              immediately after the consummation of the
                              Transactions to occur on the Closing Date.

                         (B)  Simultaneously with the making of the initial
                              Loans, either (i) the Note Offering shall be
                              consummated for gross proceeds of not less than
                              $300,000,000, or (ii) the drawdown of the Interim
                              Loan shall be consummated for gross proceeds of
                              not less than $300,000,000 pursuant to
                              documentation and on terms and conditions
                              reasonably satisfactory to the Lead Arrangers.

                         (C)  The Equity Issuance shall have been consummated on
                              terms and conditions pursuant to documentation
                              reasonably satisfactory to the Lead Arrangers.

                         (D)  To the extent requested by the Lead Arrangers, the
                              Lead Arrangers shall have received copies,
                              certified by Borrower, of all filings made with
                              any governmental authority in connection with the
                              Transactions.

                         (E)  The Transactions and the financing therefor shall
                              be in compliance with all laws and regulations in
                              all material respects or the Lead Arrangers shall
                              have determined such to be inapplicable to the
                              Transactions.

                         (F)  Simultaneously with the making of the initial
                              Loans, the Acquisition shall have been consummated
                              in all material respects in accordance with the
                              terms of the Merger Agreement (without the waiver
                              or amendment of any material condition unless
                              consented to by the Lead Arrangers and the
                              Lenders). Each of the parties thereto shall have
                              complied in all material respects with all
                              covenants set forth in the Merger Agreement to be
                              complied with by it on or prior to the Closing
                              Date (without the waiver or amendment of any of
                              the material terms thereof unless consented to by
                              the Lead Arrangers).

                               [SENIOR SECURED]
<PAGE>

                                      -9-

                              (G)  Simultaneously with the making of the initial
                                   Loans, Borrower shall have effected the
                                   Refinancing on terms and conditions and
                                   pursuant to documentation reasonably
                                   satisfactory to the Lead Arrangers. All liens
                                   in respect of the Existing Indebtedness
                                   (excluding capital leases and other currently
                                   secured debt permitted to remain outstanding)
                                   shall have been released and the Lead
                                   Arrangers shall have received evidence
                                   thereof satisfactory to the Lead Arrangers
                                   (or arrangements for such release reasonably
                                   satisfactory to the Lead Arrangers shall have
                                   been made) and a "pay-off" letter or letters
                                   reasonably satisfactory to the Lead Arrangers
                                   with respect to such Existing Indebtedness.

                              (H)  No law or regulation shall be applicable in
                                   the reasonable judgment of the Lead Arrangers
                                   that restrains, prevents or imposes material
                                   adverse conditions upon the Transactions or
                                   the financing thereof, including the Credit
                                   Facilities.

                              (I)  After giving effect to the Transactions,
                                   Borrower and its subsidiaries shall have
                                   outstanding no indebtedness or preferred
                                   stock (or direct or indirect guarantee or
                                   other credit support in respect thereof)
                                   other than the Loans, the Notes or the
                                   Interim Loan, $325,000,000 aggregate
                                   principal amount of senior subordinated notes
                                   due May 2009 of Borrower and such other debt
                                   or preferred stock as is reasonably
                                   acceptable to the Lead Arrangers.

                              (J)  There shall not have occurred or become known
                                   any material adverse change or any condition
                                   or event that could reasonably be expected to
                                   result in a material adverse change in the
                                   business, operations, financial condition,
                                   liabilities (contingent or otherwise) or
                                   prospects (each, a "Material Adverse Change")
                                                       -----------------------
                                   of Borrower and its subsidiaries taken as a
                                   whole (after giving effect to the
                                   Transactions) since December 31, 1999.

                              (K)  The Lead Arrangers shall have received
                                   reasonably satisfactory evidence (including
                                   satisfactory supporting schedules and other
                                   data) that the ratio of pro

                               [SENIOR SECURED]
<PAGE>

                                     -10-

                                   forma consolidated debt to pro forma EBITDA
                                   (to be defined) of Borrower and its
                                   subsidiaries calculated in a manner
                                   reasonable acceptable to the Lead Arrangers
                                   and after giving effect to the Transactions
                                   for the trailing four quarters ended
                                   immediately prior to the Closing Date was not
                                   greater than 4.25:1.0.

                              (L)  All requisite governmental authorities and
                                   material third parties shall have approved or
                                   consented to the Transactions and the other
                                   transactions contemplated hereby to the
                                   extent required (without the imposition of
                                   any materially burdensome condition or
                                   qualification in the reasonable judgment of
                                   the Lead Arrangers) and all such approvals
                                   shall be in full force and effect, all
                                   applicable waiting periods shall have expired
                                   and there shall be no governmental or
                                   judicial action, actual or threatened, that
                                   has or could have a reasonable likelihood of
                                   restraining, preventing or imposing
                                   materially burdensome or materially adverse
                                   conditions on any of the Transactions.

                              (M)  All accrued fees and expenses (including the
                                   reasonable fees and expenses of counsel to
                                   the Lead Arrangers) of the Lead Arrangers in
                                   connection with the Credit Documents shall
                                   have been paid.

                              (N)  The Lenders shall have received such other
                                   customary legal opinions, corporate documents
                                   and other instruments and/or certificates as
                                   they may reasonably request.

Conditions to All             Each extension of credit under the Credit
Extensions of Credit:         Facilities will be subject to customary
                              conditions, including the (i) absence of any
                              Default or Event of Default (to be defined), and
                              (ii) continued accuracy of representations and
                              warranties in all material respects.

Representations and           Customary for facilities similar to the Credit
 Warranties:                  Facilities and such additional representations and
                              warranties as may reasonably be required by the
                              Lead Arrangers.

Affirmative Covenants:        Customary for facilities similar to the Credit
                              Facilities and such affirmative covenants as may
                              reasonably be required by the Lead Arrangers.

                               [SENIOR SECURED]
<PAGE>

                                     -11-

Negative Covenants:                Customary for facilities similar to the
                                   Credit Facilities and such others as may
                                   reasonably be required by the Lead Arrangers
                                   (all such covenants to be subject to
                                   customary baskets and exceptions and such
                                   others to be agreed upon), including, but not
                                   limited to, limitation on indebtedness;
                                   limitation on liens and further negative
                                   pledges; limitation on investments;
                                   limitation on contingent obligations;
                                   limitation on dividends, redemptions and
                                   repurchases of equity interests; limitation
                                   on mergers, acquisitions and asset sales;
                                   limitation on capital expenditures;
                                   limitation on sale-leaseback transactions;
                                   limitation on transactions with affiliates;
                                   limitation on dividend and other payment
                                   restrictions affecting subsidiaries;
                                   limitation on changes in business conducted;
                                   limitation on amendment of documents relating
                                   to other material indebtedness and other
                                   material documents; limitation on creation of
                                   subsidiaries; and limitation on prepayment or
                                   repurchase of subordinated indebtedness.

Financial Covenants:               The Credit Facilities will contain financial
                                   covenants appropriate in the context of the
                                   proposed transaction based upon the financial
                                   information provided to the Lead Arrangers,
                                   including, but not limited to (definitions
                                   and numerical calculations to be set forth in
                                   the Credit Agreement): minimum net worth;
                                   minimum ratio of trailing four quarter EBITDA
                                   (to be defined) to total interest expense for
                                   the same period; minimum ratio of trailing
                                   four quarter EBITDA to the sum of interest
                                   expense , scheduled principal payments,
                                   capital expenditures and tax expenses for the
                                   same period; maximum ratio (the "Total
                                                                    -----
                                   Leverage Ratio") of total debt to trailing
                                   --------------
                                   four quarter EBITDA; and maximum ratio of
                                   total senior debt to trailing four quarter
                                   EBITDA. The financial covenants contemplated
                                   above will be tested on a quarterly basis and
                                   will apply to Borrower and its subsidiaries
                                   on a consolidated basis.

Interest Rate Management:          An amount designated by the Lead Arrangers of
                                   the projected outstandings under the Credit
                                   Facilities and the Interim Loan must be
                                   hedged on terms and for a period of time
                                   reasonably satisfactory to the Lead Arrangers
                                   with a counterparty reasonably acceptable to
                                   the Lead Arrangers.

Events of Default:                 Customary for facilities similar to the
                                   Credit Facilities and others as may
                                   reasonably be required by the Lead Arrangers.

                               [SENIOR SECURED]
<PAGE>

                                     -12-

Yield Protection and           Usual for facilities and transactions of this
 Increased Costs:              type.

Assignments and                Each assignment (unless to another Lender or its
 Participations:               affiliates) shall be in a minimum amount of $5.0
                               million (unless Borrower and the Lead Arrangers
                               otherwise consent or unless the assigning
                               Lender's exposure is thereby reduced to $ 0).
                               Assignments (which may be non-pro rata among
                               loans and commitments) shall be permitted with
                               Borrower's and the Lead Arrangers' consent (such
                               consent not to be unreasonably withheld, delayed
                               or conditioned), except that no such consent of
                               Borrower need be obtained to effect an assignment
                               to any Lender (or its affiliates) or if any
                               default has occurred and is continuing.
                               Participations shall be permitted without
                               restriction. Voting rights of participants will
                               be subject to customary limitations.

Required Lenders:              Lenders having a majority of the outstanding
                               credit exposure (the "Required Lenders"), subject
                                                     ----------------
                               to amendments of certain provisions of the Credit
                               Documents requiring the consent of Lenders having
                               a greater share (or all) of the outstanding
                               credit exposure.

Expenses and Indemnification:  In addition to those out-of-pocket expenses
                               reimbursable under the Commitment Letter, all
                               reasonable out-of-pocket expenses of the Lead
                               Arrangers and the Administrative Agent (and the
                               Lenders for enforcement costs and documentary
                               taxes) associated with the preparation, execution
                               and delivery of any waiver or modification
                               (whether or not effective) of, and the
                               enforcement of, any Credit Document (including
                               the reasonable fees, disbursements and other
                               charges of counsel for the Lead Arrangers) are to
                               be paid by the Credit Parties.

                               The Credit Parties will indemnify each of the
                               Lead Arrangers, the Administrative Agent and the
                               other Lenders and hold them harmless from and
                               against all costs, expenses (including reasonable
                               fees, disbursements and other charges of counsel
                               for the Lead Arrangers) and liabilities arising
                               out of or relating to any litigation or other
                               proceeding (regardless of whether the Lead
                               Arrangers, the Administrative Agent or any such
                               other Lender is a party thereto) that relate to
                               the Transactions or any transactions related
                               thereto (excluding

                               [SENIOR SECURED]
<PAGE>

                                     -13-

                               litigation among the Lenders), except to the
                               extent arising solely from such person's bad
                               faith, gross negligence or willful misconduct.

Governing Law and Forum:       New York.

Waiver of Jury Trial:          All parties to the Credit Documents waive the
                               right to trial by jury.

Special Counsel for Lead       Cahill Gordon & Reindel (including local counsel
 Arranger:                     as selected by the Lead Arrangers).

                               [SENIOR SECURED]
<PAGE>

                                      -1-

                                                                         ANNEX I
                                                                         -------

Interest Rates and Fees:       Borrower will be entitled to make borrowings
                               based on the ABR plus the Applicable Margin or
                               LIBOR plus the Applicable Margin. The "Applicable
                               Margin" shall be (A) with respect to LIBOR Loans
                               under the (i) Revolving Facility, 3.00% per
                                                                       ---
                               annum; (ii) Term Loan A Facility, 3.00% per
                               -----                                   ---
                               annum; (iii) Asset Sale Facility, 3.00% per
                               -----                                   ---
                               annum; (iv) Term Loan B Facility, 3.50% per
                               -----                                   ---
                               annum; and (v) Term Loan C Facility, 3.75% per
                               -----                                      ---
                               annum; and (B) with respect to ABR Loans under
                               -----
                               the (i) Revolving Facility, 2.00% per annum; (ii)
                                                                 ---------
                               Term Loan A Facility, 2.00% per annum; (iii)
                                                           ---------
                               Asset Sale Facility, 2.00% per annum; (iv) Term
                                                          ---------
                               Loan B Facility, 2.50% per annum; and (v) Term
                                                      ---------
                               Loan C Facility, 2.75% per annum.
                                                      ---------
                               Notwithstanding the foregoing, on and after the
                               date (the "Trigger Date") which is the latest of
                                          ------------
                               (A) if the Interim Loan is drawn down, the date
                               of issuance of Take-out Securities generating
                               gross proceeds to Borrower of at least $300.0
                               million, (B) the repayment in full of the Asset
                               Sale Facility, and (C) the first date after the
                               Closing Date on which Borrower delivers financial
                               statements and a computation of the Total
                               Leverage Ratio for the first fiscal quarter ended
                               at least six months after the Closing Date in
                               accordance with the Credit Agreement, the
                               Applicable Margins for the Revolving Facility and
                               Term Loan A Facility shall be subject to a grid
                               based on the most recent Total Leverage Ratio to
                               be negotiated.

                               "ABR" means the higher of (i) the corporate base
                                ---
                               rate of interest announced by the Administrative
                               Agent from time to time, changing effective on
                               the date of announcement of said corporate base
                               rate changes, and (ii) the Federal Funds Rate
                               plus 0.50% per annum. The corporate base rate is
                                          ---------
                               not

                               [SENIOR SECURED]
<PAGE>

                                      -2-

                               necessarily the lowest rate charged by the
                               Administrative Agent to its customers.

                               "LIBOR" means the rate determined by the
                               ------
                               Administrative Agent to be available to the
                               Lenders in the London interbank market for
                               deposits in US Dollars in the amount of, and for
                               a maturity corresponding to, the amount of the
                               applicable LIBOR Loan, as adjusted for maximum
                               statutory reserves.

                               Borrower may select interest periods of one, two,
                               three or six (or if available from all Lenders, 9
                               or 12) months for LIBOR borrowings. Interest will
                               be payable in arrears (i) in the case of ABR
                               Loans, at the end of each quarter and (ii) in the
                               case of LIBOR Loans, at the end of each interest
                               period and, in the case of any interest period
                               longer than three months, no less frequently than
                               every three months; provided, however, that if
                                                   --------  -------
                               the Interim Loan is drawn down, interest shall be
                               paid not less frequently than interest is paid on
                               the Interim Loan and in any event at least 15
                               days prior to payment of interest on the Interim
                               Loan. Interest on all borrowings shall be
                               calculated on the basis of the actual number of
                               days elapsed over (x) in the case of LIBOR Loans,
                               a 360-day year, and (y) in the case of ABR Loans,
                               a 365- or 366-day year, as the case may be.

                               Commitment fees accrue on the undrawn amount of
                               the Credit Facilities, commencing on the date of
                               the execution and delivery of the Credit
                               Documents. The commitment fee in respect of the
                               Credit Facilities will initially be 0.50% per
                                                                         ---
                               annum subject to a stepdown after the Trigger
                               -----
                               Date to subject to a grid based on the most
                               recent Total Leverage Ratio to be negotiated.

                               All commitment fees will be payable in arrears at
                               the end of each quarter and upon any termination
                               of any commitment, in each case for the actual
                               number of days elapsed over a 360-day year.

                               [SENIOR SECURED]
<PAGE>

                                      -3-

                               [SENIOR SECURED]
<PAGE>

CONFIDENTIAL                                                           EXHIBIT B
                                                                       ---------

                                  INTERIM LOAN
                                  ------------

                       SUMMARY OF TERMS AND CONDITIONS*
                       --------------------------------

Borrower:                      Triad Hospitals Holdings, Inc. ("Borrower").
                                                                --------

Sole Book-Runner and           Merrill Lynch & Co. (the "Lead Arranger").
Co-Lead Arranger:

Syndication Agent:             Merrill Lynch & Co.

Administrative Agent:          A Lender or other financial institution to be
                               selected by Borrower and reasonably acceptable to
                               the Lead Arranger (the "Administrative Agent").
                                                       --------------------

Lenders:                       Merrill Lynch Capital Corporation (or one of its
                               affiliates) and a syndicate of financial
                               institutions (the "Lenders") arranged by the Lead
                                                  -------
                               Arranger and reasonably acceptable to Borrower.

Interim Loan:                  Senior Unsecured Interim Loan (the "Interim
                                                                   -------
                               Loan").
                               -----

Principal Amount:              Up to $300,000,000.

Documentation:                 Usual for facilities and transactions of this
                               type and reasonably acceptable to Borrower and
                               the Lenders. The documentation for the Interim
                               Loan will include, among others, a credit
                               agreement (the "Interim Loan Agreement"),
                                               ----------------------
                               guarantees and other appropriate documents
                               (collectively, the "Interim Loan Documents").
                                                   ----------------------
Transactions:                  As described in the Commitment Letter.

Use of Proceeds:               Together with proceeds derived from the Senior
                               Secured Credit Facilities, to finance the
                               Acquisition and the Refinancing and to pay the
                               fees and expenses related to the Transactions.

Termination of Commitments:    The commitment in respect of the Interim Loan
                               (including pursuant to the Commitment Letter)
                               will automatically and permanently terminate on
                               June 30, 2001 if not drawn down on or

____________________________
*
     Capitalized terms used herein and not defined shall have the meanings
     assigned to such terms in the attached Credit Facilities Commitment Letter
     (the "Commitment Letter")
           ------------------

                                [INTERIM LOAN]
<PAGE>

                                      -2-

                               prior to such date. In addition, the commitments
                               in respect of the Interim Loan will automatically
                               and permanently terminate on the date of the
                               consummation of the Acquisition to the extent not
                               drawn down on such date.

Maturity:                      The Interim Loan will mature on the date (the
                               "Initial Maturity Date") that is twelve months
                                ---------------------
                               after the initial funding date (the "Funding").
                                                                    -------
                               Upon the satisfaction of the terms and conditions
                               described under "Exchange Feature; Rollover
                               Securities and Rollover Loans", the Interim Loan
                               will be exchanged for, at the option of each
                               Lender, either (i) unsecured senior debt
                               securities ("Rollover Securities"), evidenced by
                                            -------------------
                               an indenture in a form attached to the Interim
                               Loan Agreement and maturing on the eighth
                               anniversary of the Initial Maturity Date, or (ii)
                               unsecured senior loans maturing on the eighth
                               anniversary of the Initial Maturity Date (the
                               "Rollover Loans"), evidenced by the Interim Loan
                                --------------
                               Agreement.

Interest Rate:                 (A) Interim Loan. The Interim Loan will bear
                                   ------------
                               interest at a rate per annum expressed as a basis
                                                  ---------
                               point spread over 30-day LIBOR (as adjusted every
                               30 days and adjusted for all applicable reserve
                               requirements):

                                   From the         To the
                                   --------
                                   Beginning        End of
                                   ---------
                                   of Month         Month            Spread
                                   ---------      ---------      -----------
                                 -------------
                                       1               3            550 bps
                                       4               6            600 bps
                                       7               9            700 bps
                                       8              12            800 bps

                               (B) Rollover Securities and Rollover Loans. The
                                   --------------------------------------
                               Rollover Securities and the Rollover Loans will
                               bear interest at a rate per annum equal to the
                                                       --- -----
                               then-applicable six-month LIBOR rate (as adjusted
                               each six months and as adjusted for all
                               applicable reserves) plus 900 bps. Any holder of
                               Rollover Securities or Rollover Loans may elect,
                               at its sole option, to fix the interest rate per
                                                                            ---
                               annum on its Rollover Securities or Rollover
                               -----
                               Loans at the then effective rate of interest per
                               annum (in which case interest shall then be paid
                               semi-annually in arrears).

                               Interest Cash Cap - 14% per annum; Total Interest
                                                       ---------
                               Cap - 17% per annum (in each case exclusive of
                                         --- -----
                               any additional interest

                                [INTERIM LOAN]
<PAGE>

                                      -3-

                               payable due to an event of default and any fees
                               paid by adding the amount thereof to principal).
                               To the extent that the accrued interest exceeds
                               the interest that would accrue at the maximum
                               cash interest rate, the excess will be paid by
                               adding the amount thereof to the outstanding
                               principal.

                               Notwithstanding the foregoing, in no event will
                               the interest rate be less than 12% per annum.
                                                                  --- -----

                               To the extent that LIBOR cannot be determined or
                               any Lender is unable to maintain a LIBOR loan,
                               the Interim Loan shall bear interest at a rate
                               per annum equal to the higher of (x) the Federal
                               --- -----
                               Funds Rate plus 0.50% per annum or (y) the Prime
                                                     --- -----
                               Rate (as determined by the Administrative Agent),
                               plus in each case the spread as indicated above
                               (minus 100 bps).

Default Rate:                  Overdue principal, interest and other amounts
                               shall bear interest at a rate per annum equal to
                                                             --- -----
                               2% in excess of the applicable interest rate
                               (including applicable margin). Interest Payment
                               Dates:

                               (A) Interim Loan.  Monthly, in arrears.
                                   ------------

                               (B) Rollover Securities and Rollover Loans.
                                   --------------------------------------
                               Quarterly, in arrears.

Security:                      None (including in respect of the Rollover
                               Securities and Rollover Loans).

Guarantee:                     The Interim Loan will be guaranteed on an
                               unsecured senior basis by each subsidiary of
                               Borrower that guarantees the Senior Secured
                               Credit Facilities. Each such guarantee is herein
                               referred to as a "Guarantee" and each such
                                                 ---------
                               guarantor, a "Guarantor." The Guarantors and
                                             ---------
                               Borrower are herein referred to as the "Credit
                                                                       ------
                               Parties."
                               -------

Ranking:                       The Interim Loan (and the Rollover Securities and
                               Rollover Loans) will be an unsecured senior
                               obligation of Borrower ranking pari passu with
                                                              ---- -----
                               other senior indebtedness of Borrower, and senior
                               to all subordinated indebtedness of Borrower
                               which is not pari passu therewith.
                                            ---- -----

Optional Prepayment:           The Interim Loan will be prepayable at par at any
                               time at Borrower's option, in whole or in part,
                               plus accrued and unpaid interest. Breakage costs,
                               if any, will be paid by Borrower.

                                [INTERIM LOAN]
<PAGE>

                                      -4-

Mandatory Prepayment:            To the extent not prohibited by the Senior
                                 Secured Credit Facilities, upon the receipt by
                                 Borrower or any of its subsidiaries of the net
                                 cash proceeds from (i) the issuance of any debt
                                 (other than under the Senior Secured Credit
                                 Facilities and subject to exceptions and
                                 baskets to be negotiated), (ii) any capital
                                 contribution or the sale or issuance of any
                                 capital stock or any securities convertible
                                 into or exchangeable for capital stock or any
                                 warrants, rights or options to acquire capital
                                 stock (subject to baskets and exceptions to be
                                 agreed upon); and (iii) insurance proceeds or
                                 asset sales and other asset dispositions
                                 (subject to baskets and exceptions to be agreed
                                 upon), Borrower will prepay the Interim Loan in
                                 an amount equal to such net proceeds not
                                 previously applied to such prepayments at par,
                                 together with accrued interest thereon. In
                                 addition, upon the occurrence of a Change of
                                 Control (to be defined), Borrower will be
                                 required to offer to prepay the entire
                                 aggregate principal amount of the Interim Loan
                                 (or the Rollover Securities and Rollover Loans)
                                 in cash for a purchase price equal to 101% of
                                 the principal amount thereof, plus accrued and
                                 unpaid interest. Breakage costs, if any, will
                                 be paid by Borrower.

Exchange Feature; Rollover       On the Initial Maturity Date, unless Borrower
 Securities and Rollover Loans:  is in bankruptcy or there has been an
                                 acceleration of the Senior Secured Credit
                                 Facilities (or any refinancing thereof) or the
                                 Interim Loan and subject to the receipt of all
                                 fees due to the Lenders, each Lender (and
                                 participant) shall have its interest in the
                                 Interim Loan exchanged for, at the option of
                                 each Lender, either Rollover Securities or
                                 Rollover Loans. The Rollover Securities and the
                                 Rollover Loans will be (i) mandatorily
                                 redeemable or repayable (as the case may be) on
                                 the basis applicable to the Interim Loan,
                                 except that, in lieu of mandatory prepayments,
                                 Borrower shall be required to make mandatory
                                 offers to purchase such Rollover Securities or
                                 Rollover Loans and (ii) optionally redeemable
                                 or repayable (as the case may be) at declining
                                 premiums on terms customary for high-yield debt
                                 securities, including four year no-call
                                 provisions. All mandatory offers to purchase
                                 and all optional prepayments shall be made pro
                                                                            ---
                                 rata between the Rollover Securities and the
                                 ----
                                 Rollover Loans.

                                 The Rollover Securities will be evidenced by an
                                 indenture in form for qualification under the
                                 Securities Act and will otherwise contain
                                 provisions customary for public debt securities
                                 and the Rollover Loans will be evidenced by the
                                 Interim Loan

                                [INTERIM LOAN]
<PAGE>

                                      -5-

                                   Agreement. The holders of the Rollover
                                   Securities will be entitled to exchange offer
                                   and other registration rights to permit
                                   resale by the holders of Rollover Securities
                                   without restriction under applicable
                                   securities laws no less favorable to holders
                                   than those customarily applicable to an
                                   offering pursuant to Rule 144A.

Conditions to Effectiveness and to The making of the Interim Loan shall be
 Interim Loan:                     subject to the same conditions precedent that
                                   are set forth in Exhibit A to the Commitment
                                   Letter with respect to the Senior Secured
                                   Credit Facilities and to the following
                                   additional conditions:

     (a)   Borrower shall have provided to the Lead Arranger not later than 25
           days prior to the Closing Date a printed preliminary ("red herring")
           offering memorandum or prospectus usable in a customary high-yield
           road show relating to the issuance of the Notes, which contains all
           financial statements and other data to be included therein (including
           all audited financial statements, all unaudited financial statements
           (each of which shall have undergone a SAS 71 review)) and all
           appropriate pro forma financial statements prepared in accordance
           with, or reconciled to, generally accepted accounting principles in
           the United States and prepared in accordance with Regulation S-X
           under the Securities Act of 1933, as amended (the "Securities Act"),
                                                              --------------
           and substantially all other data (including selected financial data)
           that the Securities and Exchange Commission would require in a
           registered offering of the Senior Notes (collectively, the "Required
                                                                       --------
           Information").
           -----------

     (b)   Borrower shall have cooperated reasonably and in good faith with the
           marketing effort for the Note Offering with the view towards
           effecting the issuance of the Notes in lieu of the draw down of the
           Interim Loan. MLPF&S shall have had a period of not less than 25 days
           to market the Notes prior to the Closing Date.

     (c)   If requested in the reasonable judgment of the Lead Arranger, there
           shall have been provided in any confidential information memorandum
           relating to syndication of the Interim Loan, or in any other document
           relating to the syndication of the Interim Loan, reasonably detailed
           pro forma consolidated financial projections prepared by or on behalf
           of Borrower for Borrower and its consolidated entities for 1999 and
           the five subsequent fiscal years that are not different in a
           materially adverse manner as compared with those previously made
           available to the Lenders.

     (d)   Borrower shall have entered into the Senior Secured Credit Facilities
           with Merrill Lynch providing for $1,375,000,000 under the Senior
           Secured Credit Facilities pursuant to agreements and on terms and
           conditions thereunder, in form and substance reasonably satisfactory
           to the Lead Arranger.

                                [INTERIM LOAN]
<PAGE>

                                      -6-

Representations and Warranties:  Customary for facilities similar to the Interim
                                 Loan and such additional representations and
                                 warranties as may reasonably be required by the
                                 Lead Arranger.

Affirmative Covenants:           Customary for facilities similar to the Interim
                                 Loan and such affirmative covenants as may
                                 reasonably be required by the Lead Arranger.

                                 In addition, the Interim Loan Agreement will
                                 contain provisions pursuant to which Borrower
                                 shall undertake to (i) cooperate with the Take-
                                 out Banks (as defined below under "Refinancing
                                 of Interim Loan") and provide the Take-out
                                 Banks with information required by the Take-out
                                 Banks in connection with the Debt Offering (as
                                 defined below under "Refinancing of Interim
                                 Loan") or other means of refinancing the
                                 Interim Loan and the Rollover Securities and
                                 the Rollover Loans, (ii) assist the Take-out
                                 Banks in connection with the marketing of the
                                 Take-out Securities (including promptly
                                 providing to the Take-out Banks any information
                                 reasonably requested to effect the issue and
                                 sale of the Take-out Securities and making
                                 available senior management of Borrower for
                                 investor meetings), and (iii) cooperate with
                                 the Take-out Banks in the timely preparation of
                                 any registration statement or private placement
                                 memorandum relating to the Debt Offering and
                                 other marketing materials to be used in
                                 connection with the syndication of the Interim
                                 Loan.

                                 Upon issuance of the Rollover Securities and
                                 the Rollover Loans, the affirmative covenants
                                 shall conform to a customary high-yield
                                 indenture and, subject to market conditions,
                                 shall be substantially similar to those
                                 contained in the 11% Senior Subordinated Notes
                                 due 2009 of Borrower (the "Existing Notes").
                                                            --------------

Negative Covenants:              Customary for facilities similar to the Interim
                                 Loan and such others as may reasonably be
                                 required by the Lead Arranger (with customary
                                 baskets and exceptions to be agreed upon),
                                 including, but not limited to, limitation on
                                 indebtedness; limitation on liens; limitation
                                 on investments; limitation on contingent
                                 obligations; limitation on dividends,
                                 redemptions and repurchases of equity
                                 interests; limitation on mergers, acquisitions
                                 and asset sales; limitation on issuance, sale
                                 or other disposition of subsidiary stock;
                                 limitation on sale-leaseback transactions;
                                 limitation on transactions with affiliates;
                                 limitation on dividend and other payment
                                 restrictions affecting subsidiaries;

                                [INTERIM LOAN]
<PAGE>

                                      -7-

                                 limitation on changes in business conducted;
                                 and limitation on prepayment or repurchase of
                                 subordinated or other pari passu indebtedness.
                                                       ---- -----

                                 Upon issuance of the Rollover Securities and
                                 the Rollover Loans, the negative covenants
                                 shall conform to a customary high-yield
                                 indenture and, subject to market conditions,
                                 shall be substantially similar to the Existing
                                 Notes.

Events of Default:               Customary for facilities similar to the Interim
                                 Loan and such others as may reasonably be
                                 required by the Lead Arranger.

Refinancing of Interim Loan:     Borrower shall undertake to use its reasonable
                                 best efforts to (i) prepare an offering
                                 memorandum for a private placement through
                                 resale pursuant to Rule 144A or (ii) file a
                                 registration statement under the Securities Act
                                 with respect to the Take-out Securities (in
                                 each case, the "Debt Offering"), to refinance
                                                 -------------
                                 in full the Interim Loan or the Rollover
                                 Securities and the Rollover Loans and
                                 consummate such Debt Offering as soon as
                                 practicable thereafter in an amount sufficient
                                 to refinance the Interim Loan or the Rollover
                                 Securities and the Rollover Loans. Such Debt
                                 Offering shall be on such terms and conditions
                                 (including (without limitation) covenants,
                                 events of default, interest rate, yield and
                                 redemption prices and dates) as the financial
                                 institutions party to the Engagement Letter
                                 (the "Take-out Banks") may in their judgment
                                       --------------
                                 determine to be appropriate in light of
                                 prevailing circumstances and market conditions
                                 and the financial condition and prospects of
                                 Borrower and its subsidiaries at the time of
                                 sale and reasonably acceptable to Borrower and
                                 containing such other customary terms as
                                 determined by the Take-out Banks and reasonably
                                 acceptable to Borrower. If any Take-out
                                 Securities are issued in a transaction not
                                 registered under the Securities Act, all such
                                 Take-out Securities shall be entitled to the
                                 benefit of a registration rights agreement to
                                 be entered into by the relevant issuer (and any
                                 guarantor thereof) in respect of indebtedness
                                 being refinanced in customary form reasonably
                                 acceptable to the Take-out Banks (which shall
                                 include provisions for a customary registered
                                 exchange offer with respect to any Take-out
                                 Securities).

Yield Protection and Increased   Usual for facilities and transactions of this
 Costs:                          type.

                                [INTERIM LOAN]
<PAGE>

                                      -8-

Required Lenders:                Lenders having a majority of the outstanding
                                 credit exposure (the "Required Lenders"),
                                                       ----------------
                                 subject to amendments of certain provisions of
                                 the Interim Loan Documents requiring the
                                 consent of Lenders having a greater share (or
                                 all) of the outstanding credit exposure.

Assignments and Participations:  Each assignment (unless to another Lender or
                                 its affiliates) shall be in a minimum amount of
                                 $1.0 million (unless Borrower and the Lead
                                 Arranger otherwise consent or unless the
                                 assigning Lender's exposure is thereby reduced
                                 to $0). Assignments shall be permitted with
                                 Borrower's and the Lead Arranger's consent
                                 (such consent not to be unreasonably withheld,
                                 delayed or conditioned), except that no such
                                 consent of Borrower need be obtained to effect
                                 an assignment to any Lender (or its affiliates)
                                 or if any default or event of default has
                                 occurred and is continuing for any assignment
                                 by Merrill Lynch or its affiliates.
                                 Participations shall be permitted without
                                 restriction. Voting rights of participants will
                                 be subject to customary limitations.

Expenses and Indemnification:    In addition to those out-of-pocket expenses
                                 reimbursable under the Commitment Letter, all
                                 reasonable out-of-pocket expenses of the Lead
                                 Arranger and the Administrative Agent (and the
                                 Lenders for enforcement costs and documentary
                                 taxes) associated with the preparation,
                                 execution and delivery of any waiver or
                                 modification (whether or not effective) of, and
                                 the enforcement of, any Interim Loan Document
                                 (including the reasonable fees, disbursements
                                 and other charges of counsel for the Lead
                                 Arranger) are to be paid by Borrower.

                                 Borrower will indemnify each of the Lead
                                 Arranger, the Administrative Agent and the
                                 other Lenders and hold them harmless from and
                                 against all costs, expenses (including
                                 reasonable fees, disbursements and other
                                 charges of counsel for the Lead Arranger) and
                                 liabilities arising out of or relating to any
                                 litigation or other proceeding (regardless of
                                 whether the Lead Arranger, the Administrative
                                 Agent or any such other Lender is a party
                                 thereto) that relates to the Transactions
                                 (excluding litigation among Lenders), except to
                                 the extent arising solely from such person's
                                 bad faith, gross negligence or willful
                                 misconduct.

Governing Law and Forum:         New York.

                                [INTERIM LOAN]
<PAGE>

                                      -9-

Waiver of Jury Trial:           All parties to the Interim Loan Documents waive
                                right to trial by jury.

Special Counsel for             Cahill Gordon & Reindel (and such local counsel
  Lead Arranger:                as may be selected by the Lead Arranger).

                                [INTERIM LOAN]

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