Document:

EX-10.3

 

Exhibit 10.3

CHS/Community Health Systems, Inc.

$3,021,331,000 Senior Notes due 2015

JOINDER TO THE PURCHASE AGREEMENT

July 25, 2007

Credit Suisse Securities (USA) LLC

Wachovia Capital Markets, LLC,

   As Representatives of the Several Purchasers,

     c/o Credit Suisse Securities (USA) LLC

       Eleven Madison Avenue,

          New York, N.Y. 10010-3629

Ladies and Gentlemen:

          Reference is made to the Purchase Agreement (the “Purchase Agreement”) dated June 27, 2007,
among CHS/Community Health Systems, Inc., a Delaware corporation (the “Company”), its subsidiary
guarantors (the “Guarantors”), Credit Suisse Securities (USA) LLC and Wachovia Capital Markets,
LLC, as Representatives for the Purchasers, concerning the purchase of the Offered Securities from
the Company by the Purchasers. Capitalized terms used herein but not defined herein shall have the
meanings ascribed to such terms in the Purchase Agreement. This is the Joinder Agreement to the
Purchase Agreement (this “Agreement”).

          Each of the parties hereto agrees that this Agreement is being executed and delivered in
connection with the issue and sale of the Offered Securities pursuant to the Purchase Agreement and
to induce the Purchasers to purchase the Offered Securities thereunder. This Agreement is being
executed on the Closing Date or, if applicable, the Escrow Release Date, concurrently with the
consummation of the Merger.

          1. Joinder. Each of Triad and the Triad Guarantors listed on Schedule C to the
Purchase Agreement (together, the “Joining Parties”) hereby agrees to become bound by the terms,
conditions and other provisions of the Purchase Agreement with all attendant rights, duties and
obligations stated therein, with the same force and effect as if originally named therein as a
party and as if such party executed the Purchase Agreement on the date thereof.

          2. Representations and Warranties of the Joining Parties. Each of the Joining
Parties represents and warrants to, and agrees with, the Purchasers on and as of the date hereof
that:

     (a) this Agreement has been duly authorized, executed and delivered by such Joining
Party; and

     (b) the representations and warranties set forth in Section 2 of the Purchase
Agreement are true and correct on and as of the date hereof.

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          3. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

          4. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall each be deemed to be an original, but all such counterparts shall together constitute
one and the same instrument.

          5. Amendments. No amendment or waiver of any provision of this Agreement, nor any
consent or approval to any departure therefrom, shall in any event be effective unless the same
shall be in writing and signed by the parties hereto.

          6. Headings. The headings herein are inserted for convenience of reference only and
are not intended to be part of, or to affect the meaning or interpretation of, this Agreement.

     If the foregoing is in accordance with your understanding, please indicate your acceptance of
this Agreement by signing in the space provided below.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 	 	 

[SIGNATURE
PAGES FOLLOW]

 

QHG of Enterprise, Inc.

QHG of Jacksonville, Inc.

QHG of Springdale, Inc.

Triad-El Dorado, Inc.

Abilene Hospital, LLC

Abilene Merger, LLC

Arizona DH, LLC

ARMC, LP

Birmingham Holdings, LLC

Bluffton Health System, LLC

Brownwood Hospital, L.P.

Brownwood Medical Center, LLC

Carlsbad Medical Center, LLC

Claremore Regional Hospital, LLC

Clarksville Holdings, LLC

College Station Hospital, L.P.

College Station Medical Center, LLC

College Station Merger, LLC

CP Hospital GP, LLC

CPLP, LLC

Crestwood Hospital LP, LLC

Crestwood Hospital, LLC

CSMC, LLC

CSRA Holdings, LLC

Deaconess Holdings, LLC

Deaconess Hospital Holdings, LLC

Desert Hospital Holdings, LLC

Detar Hospital, LLC

Dukes Health System, LLC

Gadsden Regional Medical Center, LLC

Greenbrier VMC, LLC

GRMC Holdings, LLC

Hobbs Medco, LLC

Las Cruces Medical Center, LLC

Lea Regional Hospital, LLC

Longview Merger, LLC

LRH, LLC

Lutheran Health Network of Indiana, LLC

Massillon Health System, LLC

Medical Center of Brownwood, LLC

MMC of Nevada, LLC

Navarro Hospital, L.P.

	 	 	 	 	 
	 	 	 
	 	By:  	        /s/ James W. Doucette
 	 
	 	 	Name:  	James W. Doucette 	 
	 	 	Title:  	Vice President, Finance and Treasurer 	 
	 

[SIGNATURE PAGES CONTINUED]

 

 

Navarro Regional, LLC

NRH, LLC

Oregon Healthcorp, LLC

Palmer-Wasilla Health System, LLC

Quorum Health Resources, LLC

Regional Hospital of Longview, LLC

Russellville Holdings, LLC

SACMC, LLC

San Angelo Community Medical Center, LLC

San Angelo Hospital, L.P.

San Angelo Medical, LLC

Southern Texas Medical Center, LLC

St. Joseph Health System, LLC

Tennyson Holdings, Inc.

Triad Holdings III, LLC

Triad Holdings IV, LLC

Triad Holdings V, LLC

Triad Healthcare Corporation

Triad of Alabama, LLC

Triad of Oregon, LLC

Triad-ARMC, LLC

Triad-Denton Hospital GP, LLC

Triad-Denton Hospital, L.P.

Triad-Navarro Regional Hospital Subsidiary, LLC

VHC Medical, LLC

Vicksburg Healthcare, LLC

Victoria Hospital, LLC

Victoria of Texas, L.P.

WHMC, LLC

Willamette Valley Medical Center, LLC

Women & Children’s Hospital, LLC

Woodland Heights Medical Center, LLC

Woodward Health System, LLC

QHG Georgia Holdings, Inc.

QHG Georgia, L.P.

Frankfort Health Partner, Inc.

IOM Health System, L.P.

QHG of Bluffton, Inc.

QHG of Clinton County, Inc.

QHG of Fort Wayne, Inc.

QHG of Warsaw, Inc.

QHG of Forrest County, Inc.

QHG of Hattiesburg, Inc.

	 	 	 	 	 
	 	 	 
	 	By:  	        /s/ James W. Doucette
 	 
	 	 	Name:  	James W. Doucette 	 
	 	 	Title:  	Vice President, Finance and Treasurer 	 
	 

[SIGNATURE PAGES CONTINUED]

 

 

QHG of Massillon, Inc.

SouthCrest, L.L.C.

River Region Medical Corporation

NC-DSH, Inc.

QHG of Barberton, Inc.

Triad-South Tulsa Hospital Company, Inc.

QHG of South Carolina, Inc.

QHG of Spartanburg, Inc.

	 	 	 	 	 
	 	 	 
	 	By:  	        /s/ James W. Doucette
 	 
	 	 	Name:  	James W. Doucette 	 
	 	 	Title:  	Vice President, Finance and TreasurerEX-10.4

 

Exhibit 10.4

PERFORMANCE BASED RESTRICTED STOCK AWARD AGREEMENT

(Most Highly Compensated Executive Officers)

(Grant Date 7/25/07 – Part A)

Community Health Systems, Inc.

     THIS AGREEMENT, between you and Community Health Systems, Inc., a Delaware corporation (the
“Company”) governs an award of restricted stock in the amount and on the date specified in your
award notification (the “Grant Date”).

     WHEREAS, the Company has adopted the Community Health Systems, Inc. Amended and Restated 2000
Stock Option and Award Plan (the “Plan”) in order to provide additional incentive to
certain employees and directors of the Company and its Subsidiaries;

     WHEREAS, the Compensation Committee (the “Committee”) of the Board of Directors (as described
in Section 3.1 of the Plan) has determined to grant to you an Award of Restricted Stock as provided
herein to encourage your efforts toward the continuing success of the Company;

     WHEREAS, the Committee has determined to place a performance-based restriction on the Award of
Restricted Stock to better align your economic interests with those of the other stockholders of
the Company and to ensure that the compensation attributable to the Award of Restricted Stock
constitutes “qualified performance-based compensation” pursuant to IRC §162(m) and the regulations
promulgated thereunder; and

     WHEREAS, the Committee has established the Performance Objective (as defined in Section 3.1
below) (a) utilizing objectively determinable criteria, (b) on a date which is prior to the
ninetieth (90th) day of the Performance Objective’s twelve-month measurement period, and
(c) at a time when the attainment of the Performance Objective is substantially uncertain.

     NOW, THEREFORE, the parties hereto agree as follows:

1. Grant of Restricted Stock.

     1.1 The Company hereby grants to you an award of Shares of Performance Based Restricted Stock
(the “Award”) in the number set out in an electronic notification by the Company’s stock
option plan administrator, as may be appointed from time to time (the “Plan Administrator”). The
Shares of Performance Based Restricted Stock granted pursuant to the Award shall be issued in the
form of book entry Shares in your name as soon as reasonably practicable after the Date of Grant
and shall be subject to your acknowledgement of the terms of this Agreement (or your estate, if
applicable) to the Company as provided in Section 9 hereof.

     1.2 This Agreement shall be construed in accordance and consistent with, and subject to, the
provisions of the Plan (the provisions of which are hereby incorporated by reference) and, except
as otherwise expressly set forth herein, the capitalized terms used in this Agreement shall have
the same definitions as set forth in the Plan.

2. Restrictions on Transfer.

     The Shares of Performance Based Restricted Stock issued under this Agreement may not be sold,
transferred or otherwise disposed of and may not be pledged or otherwise hypothecated until all

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restrictions on such Performance Based Restricted Stock shall have lapsed in the manner provided in
Section 3, 4 or 5 hereof.

3. Performance Objective; Lapse of Restrictions.

          3.1 The Award is subject to the Company attaining the following “Performance Objective”
(herein so called): either (a) the Company’s “Earnings per Share” for the twelve months
ended June 30, 2008 (the “Performance Objective’s measurement period”), as reported by the Company
to and approved by the Audit and Compliance Committee in connection with the preparation of the
earnings release for the second fiscal quarter of 2008, shall be not less than the amount which is
seventy-five percent (75%) of the projected “Earnings per Share” for the Performance Objective’s
measurement period, as identified (together with the footnoted adjustments) in an attachment to the
minutes of the Committee’s meeting dated July 18, 2007; or (b) the Company’s “Net Revenues”
for the Performance Objective’s measurement period, as reported by the Company to and approved by
the Audit and Compliance Committee in connection with the preparation of the earnings release for
the second fiscal quarter of 2008, shall be not less than the amount which is ninety percent (90%)
of the projected “Net Revenues”, as identified (together with the footnoted adjustments) in an
attachment to the minutes of the Committee’s meeting dated July 18, 2007. The Performance
Objective shall be adjusted upward or downward in accordance with GAAP to reflect the impact of
any material acquisition or divestiture transaction and shall also be adjusted for actual events as
identified in the “Notes” to the attachment to the minutes of the Committee’s meeting dated July
18, 2007. For purposes of this Agreement, “material acquisition” or “material divestiture”
transaction shall mean any single transaction or series of related transactions in which the
consideration exceeds fifteen percent (15%) of the Company’s assets on a consolidated basis. The
computation of “Earnings per Share” shall be adjusted for Changes in Capitalization (as defined in
the Plan).

          3.2 Except as provided in Sections 4, 5 and 6 hereof, if the Performance Objective is not
attained, the Award shall be forfeited in its entirety.

          3.3 Except as provided in Sections 4, 5 and 6 hereof, if the Performance Objective is
attained, all of Shares of Performance Based Restricted Stock issued hereunder shall vest, and the
restrictions with respect to such Performance Based Restricted Stock shall lapse upon the
determination by the Committee, which determination shall be certified by the Committee in writing.

4. Effect of Certain Terminations of Employment.

     If your employment terminates as a result of your death, Disability, or by your employer for
any reason other than for Cause, and such termination occurs on or after the Date of Grant and
before June 30, 2008, all Shares of Performance Based Restricted Stock shall vest, and the
restrictions on such Performance Based Restricted Stock shall lapse, as of the date of such
termination.

5. Effect of Change in Control.

     In the event of a Change in Control at any time on or after the Date of Grant and before June
30, 2008, all Shares of Performance Based Restricted Stock shall vest, and the restrictions on such
Performance Based Restricted Stock shall lapse immediately.

6. Forfeiture of Performance Based Restricted Stock.

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     In addition to the circumstance described in Section 9(a) hereof, any and all Shares of
Performance Based Restricted Stock which have not become vested in accordance with Section 3, 4 or
5 hereof shall be forfeited and shall revert to the Company upon your termination, whether
voluntarily by you or by the Company or its Subsidiaries for any reason other than those set forth
in Section 4 hereof prior to such vesting.

7. Delivery of Restricted Stock.

     7.1 Except as otherwise provided in Section 7.2 hereof, evidence of book entry Shares or, if
requested by you prior to such lapse of restrictions, a stock certificate evidencing the shares of
Performance Based Restricted Stock for which the restrictions have lapsed pursuant to Section 3, 4
or 5 hereof, shall be delivered to you as soon as practicable following the date on which the
restrictions on such Performance Based Restricted Stock have lapsed, free of all restrictions
hereunder.

     7.2 Evidence of book entry Shares with respect to shares of Performance Based Restricted Stock
in respect of which the restrictions have lapsed upon your death pursuant to Section 4 hereof or,
if requested by the executors or administrators of your estate upon such lapse of restrictions, a
stock certificate with respect to such shares of Performance Based Restricted Stock, shall be
delivered to the executors or administrators of your estate as soon as practicable following the
Company’s receipt of notification of your death, free of all restrictions hereunder. All
references herein to “you” shall also include your executors, administrators, heirs or assigns in
the event of your death.

8. Dividends and Voting Rights.

     Subject to Section 9(a) hereof, upon issuance of the Performance Based Restricted Stock, you
shall have all of the rights of a stockholder with respect to such Stock, including the right to
vote the Stock and to receive all dividends or other distributions paid or made with respect
thereto; provided, however, that dividends or distributions declared or paid on the
Performance Based Restricted Stock by the Company shall be deferred and reinvested in Shares of
Performance Based Restricted Stock based on the Fair Market Value of a Share on the date such
dividend or distribution is paid or made (provided that no fractional Shares will be issued), and
the additional Shares of Performance Based Restricted Stock thus acquired shall be subject to the
same restrictions on transfer, forfeiture and vesting schedule as the Performance Based Restricted
Stock in respect of which such dividends or distributions were made.

9. Acceptance of Terms of Award Agreement.

     (a) The Shares of Performance Based Restricted Stock granted to you pursuant to the Award
shall be subject to your acknowledgment and acceptance of the terms of this Agreement to the
Company or its Plan Administrator (including by electronic means, if so provided) no later than the
earlier of (i) one-hundred eighty (180) days from the Date of Grant, and (ii) the date that is
immediately prior to the date that the Performance Based Restricted Stock vests pursuant to Section 4 or 5 hereof (the “Return Date”); provided that if you die before the Return Date, this
requirement shall be deemed to be satisfied if the executor or administrator of your estate
acknowledges and accepts the terms of this Agreement through the Company or its Plan Administrator
no later than ninety (90) days following your death (the “Executor Return Date”). If this
Agreement is not so acknowledged and accepted on or prior to the Return Date or the Executor Return
Date, as applicable, the Shares of Performance Based Restricted Stock evidenced by this Agreement
shall be forfeited, and neither you nor your heirs, executors, administrators and successors shall
have any rights with respect thereto.

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     (b) If this Agreement is so acknowledged and accepted on or prior to your Return Date or the
Executor Return Date, as applicable, all dividends and other distributions paid or made with
respect to the Shares of Performance Based Restricted Stock granted hereunder prior to such Return
Date or Executor Return Date shall be treated in the manner provided in Section 8 hereof.

10. No Right to Continued Employment.

     Nothing in this Agreement or the Plan shall interfere with or limit in any way the right of
the Company or its Subsidiaries to terminate your employment, nor confer upon you any right to
continuance of employment by the Company or any of its Subsidiaries or continuance of service as a
Board member.

11. Withholding of Taxes.

     Prior to the delivery of a stock certificate or evidence of book entry Shares with respect to
shares of Performance Based Restricted Stock whose restrictions have lapsed, you (or your estate)
shall pay to the Company the federal, state and local income taxes and other amounts as may be
required by law to be withheld by the Company (the “Withholding Taxes”) as may be due upon
the lapse of restrictions. By accepting the terms of this Agreement in the manner provided in
Section 9 hereof, you shall be deemed to elect to have the Company withhold a number of shares of
Performance Based Restricted Stock having an aggregate Fair Market Value equal to the Withholding
Taxes due thereon in full satisfaction thereof, and such election shall continue in effect until
you notify the Company (prior to such delivery) that you will satisfy the Withholding Tax
obligation in cash, in which event the Company shall not withhold a portion of such Performance
Based Restricted Stock as otherwise provided in this Section 11.

12. You are Bound by the Plan.

     By acknowledging and accepting this award, you hereby confirm the availability and your review
of a copy of the Plan, the Prospectus, and other documents provided to you in connection with this
award, by the Company or its Plan Administrator, and you agree to be bound by all the terms and
provisions thereof.

13. Modification of Agreement.

     This Agreement may be modified, amended, suspended or terminated, and any terms or conditions
may be waived, but only by a written instrument executed by both parties hereto.

14. Severability.

     Should any provision of this Agreement be held by a court of competent jurisdiction to be
unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be
affected by such holding and shall continue in full force in accordance with their terms.

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15. Governing Law.

     The validity, interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Tennessee without giving effect to the conflicts of laws principles
thereof.

16. Successors in Interest.

     This Agreement shall inure to the benefit of and be binding upon any successor to the Company.
This Agreement shall inure to the benefit of your legal representatives. All obligations imposed
upon you and all rights granted to the Company under this Agreement shall be binding upon your
heirs, executors, administrators and successors.

17. Resolution of Disputes.

     Any dispute or disagreement which may arise under, or as a result of, or in any way relate to,
the interpretation, construction or application of this Agreement shall first be referred to the
Chief Executive Officer for informal resolution, and if necessary, referred to the Committee for
its determination. Any determination made hereunder shall be final, binding and conclusive on you,
your heirs, executors, administrators and successors, and the Company and its Subsidiaries for all
purposes.

18. Entire Agreement.

     This Agreement and the terms and conditions of the Plan constitute the entire understanding
between you and the Company and its Subsidiaries, and supersede all other agreements, whether
written or oral, with respect to the Award.

19. Headings.

     The headings of this Agreement are inserted for convenience only and do not constitute a part
of this Agreement.

[Signatures supplied by electronic grant and acceptance procedures of the plan administrator.]

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