Document:

Exhibit 10.iii

 

NOTE:     In this document, “X”
denotes information omitted pursuant to a request for confidential
treatment.  Such omitted material has
been filed separately with the Securities and Exchange Commission.

 

Long-Term
Incentive Plan for Senior Executives Pursuant to

Great
Lakes Chemical Corporation 2002 Stock Option and Incentive Plan (“Plan”)

 

Introduction
and Applicability

 

This Long-Term Incentive Plan (“LTIP”) is intended to encourage the
Named Officers, who are key employees of Great Lakes Chemical Corporation (the
“Company”), to remain with the Company through the Pay-out Date, as defined
below, and to motivate them to maximize long-term shareholder value during the
Performance Cycle.  As set forth herein,
the Named Officers may earn Awards if the conditions of this LTIP are met.  It is the Company’s intention that Awards
are to be tax-deductible to the Company under Section 162(m) of the
Internal Revenue Code.

 

The LTIP applies only to the Named Officers, and the Awards are payable
to the Named Officer only if there has been Continuous Service by the Named
Officer from May 1, 2003 through the Pay-out Date. This LTIP may be made
applicable to new or additional officers of the Company only by express action
of the Committee or the Board on such terms as either may designate.

 

Sections 2, 11, 14-23 and 25 of the Plan are incorporated by reference
into this LTIP.

 

Definitions

 

Unless otherwise indicated, all capitalized terms have the definitions
set forth in the Plan.  In addition, the
following definitions are applicable to the LTIP:

 

“After-Tax Interest Income (Expense)” means Interest Income (Expense) –
net, as shown on the Consolidated Statements of Operations in the Company’s
Annual Report on Form 10-K for the applicable year, multiplied by the quantity
(1- Continuing Operations Effective Tax Rate).

 

“Award” means Performance Shares or a Cash Pay-out achievable by a
Named Officer under this LTIP.

 

“Award Amount” means the value in United States dollars of an Award to
a Named Officer.

 

“Annual Net Income” means Income (Loss) from Continuing Operations, as
shown on the Consolidated Statements of Operations in the Company’s Annual
Report on Form 10-K for the applicable year adjusted as follows:  plus After-Tax Interest Expense or minus
After-Tax Interest Income, as the case may be for the applicable year.

 

“Cash Pay-out” means the payment of cash in lieu of Performance Shares
as permitted by Section 14 of the Plan.

 

“Committee” means the Compensation and Incentive Committee of the
Board, as appointed by the Board under Section 3 of the Plan.

 

“Continuing Operations Effective Tax Rate” means a percentage
calculated by dividing the amount of Income Taxes (Credit) for continuing
operations by the amount of Income (Loss) from Continuing Operations before
Income Taxes, both as shown on the Consolidated Statements of Operations in the
Company’s Annual Report on Form 10-K for the applicable year.

 

“EPS” means the earnings per share from continuing operations,
excluding special charges, accounting changes and one-time items, as publicly
announced by the Company, and before reconciliation to GAAP as required by
Regulation G and Item 10 of Regulation S-K of the SEC, for the applicable year.

 

“GAAP” means accounting principles generally accepted in the United States.

 

“Named Officer[s]” means John B. Blatz, Larry J. Bloom, Angelo C.
Brisimitzakis, Mark P. Bulriss, John J. Gallagher III, Richard T. Higgons,
Richard J. Kinsley, Jeffrey M. Lipshaw, Zoe F. Schumaker and/or Henri
Steinmetz.

 

1

 

“Net Assets,” as to the Company for the applicable year, means the
average of the following amounts as shown for the applicable year and the
preceding year on the Consolidated Balance Sheets in the Company’s Annual
Report on Form 10-K for the applicable year (e.g., for 2005, it would be the
average of the amounts for December 31, 2004 and December 31, 2005):
total assets from which are subtracted the amounts shown for (1) cash and cash
equivalents, (2) all non-interesting-bearing liabilities, (3) minority
interest, and (4) the net difference between non-current assets held for sale
from discontinued operation and non-current liabilities held for sale from
discontinued operations.  “Net Assets,”
as to an individual SBU, shall mean an equivalently derived amount for that
SBU, as shown by the Company’s books and records.

 

“Pay-out Date” means ten business days following the Committee’s
determination and certification in minutes signed by the Chairman of the
Committee that the performance goals established under this LTIP have been
attained or otherwise satisfied.  It is
expected that such certification shall occur no later than the first regularly
scheduled meeting of the Board after the filing with the SEC of the Company’s
Annual Report on Form 10-K for the year 2005.

 

“Performance Cycle” means the period beginning January 1, 2003 and
ending December 31, 2005.

 

“Performance Share Award” means that number of Restricted Shares
calculated by dividing the Award Amount by the Market Value of Shares on the
Pay-out Date, with any fractional amount to be paid in cash, subject to
applicable taxes and withholding.

 

“ROI” means return on net assets for the applicable year, determined as
a ratio with Annual Net Income as the numerator and Net Assets as the
denominator.

 

“SBU” means, as applicable, any of the Company’s FR-BPP, Polymer
Stablizers, Specialty Products and/or Performance Chemical Strategic Business
Units.

 

“SEC” means the United States Securities and Exchange Commission.

 

“Threshold” means the level at which an award begins to be earned.

 

Award Targets and
Calculation

 

Award Components

 

For Named Officers other than SBU Leaders, the components of any Award
will be as follows: 50% determined by the Company’s performance on EPS, and 50%
by the Company’s performance on ROI.

 

For Named Officers who are SBU Leaders, components of any Award will be
as follows:  25% determined by the
Company’s performance on EPS, 25% by the Company’s performance on ROI, and 50%
by his or her SBU’s performance on ROI.

 

2005 Targets &
Thresholds

 

	
   

  	
   

  	
  ROI

  	
   

  
	
   

  	
   

  	
  GLK

  	
   

  	
  SBU

  	
   

  	
  EPS

  	
   

  
	
   

  	
   

  	
  Threshold

  	
   

  	
  Target

  	
   

  	
  Threshold

  	
   

  	
  Target

  	
   

  	
  Threshold

  	
   

  	
  Target

  	
   

  
	
  M. P. Bulriss

  	
   

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  $

  	
  X.XX

  	
   

  	
  $

  	
  X.XX

  	
   

  
	
  L. J. Bloom

  	
   

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  $

  	
  X.XX

  	
   

  	
  $

  	
  X.XX

  	
   

  
	
  A.C. Brisimitzakis

  	
   

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  $

  	
  X.XX

  	
   

  	
  $

  	
  X.XX

  	
   

  
	
  H. Steinmetz

  	
   

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  $

  	
  X.XX

  	
   

  	
  $

  	
  X.XX

  	
   

  
	
  J. B. Blatz

  	
   

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  $

  	
  X.XX

  	
   

  	
  $

  	
  X.XX

  	
   

  
	
  J. J. Gallagher

  	
   

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  $

  	
  X.XX

  	
   

  	
  $

  	
  X.XX

  	
   

  
	
  R. T. Higgons

  	
   

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  $

  	
  X.XX

  	
   

  	
  $

  	
  X.XX

  	
   

  
	
  R. J. Kinsley

  	
   

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  $

  	
  X.XX

  	
   

  	
  $

  	
  X.XX

  	
   

  
	
  J. M. Lipshaw

  	
   

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  $

  	
  X.XX

  	
   

  	
  $

  	
  X.XX

  	
   

  
	
  Z. F. Schumaker

  	
   

  	
  XX

  	
  %

  	
  XX

  	
  %

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  $

  	
  X.XX

  	
   

  	
  $

  	
  X.XX

  	
   

  

 

2

 

Maximum Performance
Share Award and Cash Pay-out Option

 

The Committee intends there to be a Maximum Award Amount, if paid as a
Performance Share Award, of 1.65 times the Named Officer’s base salary and
target bonus for 2005 if the Company and SBU, as applicable, fully achieve or
exceed the Targets.

 

The Committee intends to permit Cash Pay-outs in lieu of a Performance
Share Award, at the option of the Named Officer (to be indicated in writing by
the Named Officer no later than five business days before the Pay-out Date).  In that case, the Maximum Award Amount shall
be 1.50 times the Named Officer’s base salary and target bonus for 2005 if the
Company and SBU, as applicable, fully achieve or exceed the Targets.

 

Minimum Pay-out
Threshold and Less-than-Maximum Awards

 

Awards will be paid under this LTIP only to the extent, for each
component applicable to a Named Officer, the Company or the SBU, as the case
may be, achieves at least the Threshold for 2005 for that component of the
Award.  Awards may be paid as to a
component for which a Threshold is achieved even if the Thresholds of other
components are not achieved.

 

The Award Amounts at the Threshold shall be as follows for each
component (whether paid as a Performance Share Award or a Cash Pay-out):

 

	
  Component

  	
   

  	
  Minimum
  Award Amount

  
	
   

  	
   

  	
   

  
	
  ROI

  	
   

  	
  XX% of the Maximum Award Amount

  
	
   

  	
   

  	
   

  
	
  EPS

  	
   

  	
  XX% of the Maximum Award Amount

  

 

If the Company or SBU achieves performance in any component in excess
of the Threshold but below the Target, the Award Amount in excess of the
Minimum Award Amount attributable to that component shall be determined ratably
between the Minimum and Maximum Award Amount in the same proportion as the
performance of the Company or SBU, as the case may be, falls between the
Threshold and the Target with respect to that component.

 

Example
1: A Named Officer who is an SBU leader had base
salary and target bonus for 2005 equal to $XXX.  The Company achieves 2005 ROI of XX% and EPS of $X.XX, and the
SBU has an ROI of XX%.  The Named
Officer elects to take a Performance Share Award.

 

The Award would be calculated as follows:

 

•              Company ROI achievement is at the
Target

 

•              Company EPS exceeds the Threshold
but is below the Target:  The amount for
this component equals the Minimum Award plus an apportionment above the Minimum
Award:

 

Minimum:

 

Apportioned:

 

•              SBU ROI is at the Threshold:

 

Total
Award Amount =

If
the stock closed at $XX on the day before the Pay-out Date, he would receive
XXX Restricted Shares and $XX in cash, subject to withholding.

 

Example
2: A corporate Named Officer had base salary and
target bonus for 2005 equal to $XXX. 
The Company achieves 2005 EPS of $X.XX and ROI of XX%.  The Named Officer elects to take a Cash
Pay-out.

 

The Award would be calculated as follows:

 

•              Company EPS is below the Target:

 

3

 

•                                          Company
ROI exceeds the Threshold but is below the Target:  The amount for this component equals the Minimum Award plus an
apportionment above the Minimum Award:

 

Minimum:  XXX

 

Apportioned:  XXX

 

Total
Award Amount = XXX

 

Change in Control,
Death and Disability

 

The Committee intends that (a) there be no pro-ration of an Award on
account of Change in Control, death or Disability before the end of the
Performance Cycle, (b) Section 17 of the Plan would apply to this LTIP if
a Change in Control were to occur after the end of the Performance Cycle, and
(c) an Award hereunder would be paid notwithstanding the death or Disability of
the Named Officer after the end of the Performance Cycle.

 

Restricted Share
Conditions

 

Restricted Shares awarded under this LTIP shall be fully vested in the
Named Officer as of the Pay-out Date. 
The Restricted Shares shall be subject to an Award Agreement to be
executed by the Company and the Named Officer providing that the Named Officer
shall not be permitted to transfer the Restricted Shares other than to satisfy
tax withholding requirements or by will or the laws of descent and distribution
until the first anniversary of the Pay-out Date; provided that such restriction
shall expire upon a Change in Control occurring after the Pay-out Date.

 

Discretion and
Interpretation

 

The Committee, in its sole discretion, may reduce any award as
calculated hereunder, on account of other goals (e.g., revenue growth) or
concerns (e.g., GAAP versus reported earnings) of the Company, as determined
from time to time by the Committee, whether or not communicated in advance to
any Named Officer.

 

The Committee, in its sole discretion, may modify this LTIP (except
insofar as it would cause awards to be made based on criteria other than those
set forth in Section 14 of the Plan) to take account of changes in
personnel, the businesses or strategies of the Company, law, regulations
(including orders or interpretations of the SEC), accounting rules, principles
or policies, or other circumstances deemed to be appropriate by the Committee.

 

The Committee retains sole authority to interpret and administer this
LTIP.  In the case of dispute or
disagreement between the Committee and a Named Officer, all determinations by
the Committee are binding and final.

 

4Exhibit 10(a)

 

COMPOSITE CONFORMED COPY

AS AMENDED BY AMENDMENTS NOS. 1, 2 & 3

 

(Signature pages reflect Lender group at
11/03/03 -

Syndication titles omitted)

 

 

FIVE-YEAR

 

CREDIT AGREEMENT

 

dated as of

 

March 1, 2001

 

among

 

Tenet Healthcare Corporation

 

The Lenders, Managing Agents and Co-Agents
Party Hereto

 

The Swingline Bank Party Hereto

 

The Bank of New York

The Bank of Nova Scotia

Salomon Smith Barney Inc.

as Documentation Agents

 

Bank of America, N.A.

as Syndication Agent

 

and

 

Morgan Guaranty Trust Company of New York

as Administrative Agent

 

 

Arranged by:

 

J.P. Morgan Securities Inc.

and

Banc of America Securities LLC,

Joint Lead Arrangers

and

Joint Bookrunners

 

 

	
  ARTICLE 1

  	
   

  
	
   

  	
  DEFINITIONS

  	
   

  
	
   

  	
  SECTION 1.01.  Definitions

  	
   

  
	
   

  	
  SECTION 1.02.  Accounting
  Terms and Determinations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  
	
   

  	
  THE
  CREDITS

  	
   

  
	
   

  	
  SECTION 2.01.  Syndicated
  Borrowings

  	
   

  
	
   

  	
  SECTION 2.02.  Notice
  of Syndicated Borrowing

  	
   

  
	
   

  	
  SECTION 2.03.  Money
  Market Borrowings

  	
   

  
	
   

  	
  SECTION 2.04.  Notice
  to Lenders; Funding of Loans

  	
   

  
	
   

  	
  SECTION 2.05.  Notes

  	
   

  
	
   

  	
  SECTION 2.06.  Maturity of Loans

  	
   

  
	
   

  	
  SECTION 2.07.  Optional Prepayments of Syndicated Loans

  	
   

  
	
   

  	
  SECTION 2.08.  Notice of Syndicated Prepayment

  	
   

  
	
   

  	
  SECTION 2.09.  Interest Rates

  	
   

  
	
   

  	
  SECTION 2.10.  Method of Electing Interest Rates

  	
   

  
	
   

  	
  SECTION 2.11.  Fees

  	
   

  
	
   

  	
  SECTION 2.12.  Termination or Reduction of Commitments

  	
   

  
	
   

  	
  SECTION 2.13.  General Provisions as to Payments

  	
   

  
	
   

  	
  SECTION 2.14.  Funding Losses

  	
   

  
	
   

  	
  SECTION 2.15.  Computation of Interest and Fees

  	
   

  
	
   

  	
  SECTION 2.16.  Swingline Loans

  	
   

  
	
   

  	
  SECTION 2.17.  Letters of Credit

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  
	
   

  	
  CONDITIONS

  	
   

  
	
   

  	
  SECTION 3.01.  Closing

  	
   

  
	
   

  	
  SECTION 3.02.  Termination of Existing Commitments

  	
   

  
	
   

  	
  SECTION 3.03.  Borrowings and Issuances or Extensions of Letters
  of Credit

  	
   

  
	
   

  	
  SECTION 3.04.  Existing Letters of Credit

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  
	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
  SECTION 4.01.  Corporate Existence and Power

  	
   

  
	
   

  	
  SECTION 4.02.  Corporate and Governmental Authorization

  	
   

  
	
   

  	
  SECTION 4.03.  Binding Effect

  	
   

  
	
   

  	
  SECTION 4.04.  Financial Information

  	
   

  
	
   

  	
  SECTION 4.05.  Litigation

  	
   

  
	
   

  	
  SECTION 4.06.  Compliance with ERISA

  	
   

  

 

2

 

	
   

  	
  SECTION 4.07.  Compliance with Laws

  	
   

  
	
   

  	
  SECTION 4.08.  Environmental Matters

  	
   

  
	
   

  	
  SECTION 4.09.  Taxes

  	
   

  
	
   

  	
  SECTION 4.10.  Material Subsidiaries

  	
   

  
	
   

  	
  SECTION 4.11.  Certain Laws Not Applicable

  	
   

  
	
   

  	
  SECTION 4.12.  Full Disclosure

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  
	
   

  	
  COVENANTS

  	
   

  
	
   

  	
  SECTION 5.01.  Information

  	
   

  
	
   

  	
  SECTION 5.02.  Maintenance of Property; Insurance

  	
   

  
	
   

  	
  SECTION 5.03.  Conduct of Business; Maintenance of Existence

  	
   

  
	
   

  	
  SECTION 5.04.  Compliance with Laws

  	
   

  
	
   

  	
  SECTION 5.05.  Inspection of Property, Books and Records

  	
   

  
	
   

  	
  SECTION 5.06.  Consolidations, Mergers and Sales of Assets

  	
   

  
	
   

  	
  SECTION 5.07.  Negative Pledge

  	
   

  
	
   

  	
  SECTION 5.08.  Debt of Subsidiaries

  	
   

  
	
   

  	
  SECTION 5.09.  Leverage Ratio

  	
   

  
	
   

  	
  SECTION 5.10.  Consolidated Net Worth

  	
   

  
	
   

  	
  SECTION 5.11.  Fixed Charge Ratio

  	
   

  
	
   

  	
  SECTION 5.12.  Restricted Payments

  	
   

  
	
   

  	
  SECTION 5.13.  Transactions with Affiliates

  	
   

  
	
   

  	
  SECTION 5.14.  Payment of Dividends by Material Subsidiaries

  	
   

  
	
   

  	
  SECTION 5.15.  Use of Proceeds

  	
   

  
	
   

  	
  SECTION 5.16.  Prepayment of Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  
	
   

  	
  DEFAULTS

  	
   

  
	
   

  	
  SECTION 6.01.  Events of Default

  	
   

  
	
   

  	
  SECTION 6.02.  Notice of Default

  	
   

  
	
   

  	
  SECTION 6.03.  Cash Cover

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  
	
   

  	
  THE AGENTS

  	
   

  
	
   

  	
  SECTION 7.01.  Appointment and Authorization

  	
   

  
	
   

  	
  SECTION 7.02.  Agents and Affiliates

  	
   

  
	
   

  	
  SECTION 7.03.  Action by the Administrative Agent

  	
   

  
	
   

  	
  SECTION 7.04.  Consultation with Experts

  	
   

  
	
   

  	
  SECTION 7.05.  Liability of the Agents

  	
   

  
	
   

  	
  SECTION 7.06.  Indemnification

  	
   

  
	
   

  	
  SECTION 7.07.  Credit Decision

  	
   

  
	
   

  	
  SECTION 7.08.  Successor Administrative Agent

  	
   

  
	
   

  	
  SECTION 7.09.  Fees

  	
   

  

 

3

 

	
   

  	
  SECTION 7.10.  Other Agents

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  
	
   

  	
  CHANGE IN CIRCUMSTANCE

  	
   

  
	
   

  	
  SECTION 8.01.  Basis for Determining Interest Rate Inadequate or
  Unfair

  	
   

  
	
   

  	
  SECTION 8.02.  Illegality

  	
   

  
	
   

  	
  SECTION 8.03.  Increased Cost and Reduced Return

  	
   

  
	
   

  	
  SECTION 8.04.  Taxes

  	
   

  
	
   

  	
  SECTION 8.05.  Base Rate Loans Substituted for Affected
  Euro-Dollar Loans

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  
	
   

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
  SECTION 9.01.  Notices

  	
   

  
	
   

  	
  SECTION 9.02.  No Waivers

  	
   

  
	
   

  	
  SECTION 9.03.  Expenses; Indemnification

  	
   

  
	
   

  	
  SECTION 9.04.  Set-offs; Sharing

  	
   

  
	
   

  	
  SECTION 9.05.  Amendments and Waivers

  	
   

  
	
   

  	
  SECTION 9.06.  Successors and Assigns

  	
   

  
	
   

  	
  SECTION 9.07.  No Reliance on Margin Stock as Collateral

  	
   

  
	
   

  	
  SECTION 9.08.  Confidentiality

  	
   

  
	
   

  	
  SECTION 9.09.  WAIVER OF JURY TRIAL

  	
   

  
	
   

  	
  SECTION 9.10.  GOVERNING LAW; SUBMISSION TO JURISDICTION

  	
   

  
	
   

  	
  SECTION 9.11.  Counterparts; Integration

  	
   

  
	
   

  	
   

  	
   

  
	
  Pricing Schedule

  
	
  Commitment Schedule

  
	
  Schedule 3.04

  	
  —

  	
  Existing Letters of Credit

  
	
  Schedule 4.05

  	
  —

  	
  Pending Litigation

  
	
   

  	
   

  	
   

  
	
  Exhibit
  A

  	
  —

  	
  Note

  
	
  Exhibit
  B

  	
  —

  	
  Money
  Market Request

  
	
  Exhibit
  C

  	
  —

  	
  Money
  Market Invitation

  
	
  Exhibit
  D

  	
  —

  	
  Money
  Market Quote

  
	
  Exhibit
  E

  	
  —

  	
  Swingline
  Note

  
	
  Exhibit
  F

  	
  —

  	
  Senior
  Officer’s Closing Certificate

  
	
  Exhibit
  G

  	
  —

  	
  Opinion
  of Gibson, Dunn & Crutcher LLP, Special Counsel for the Borrower

  
	
  Exhibit
  H

  	
  —

  	
  Opinion
  of General Counsel for the Borrower

  
	
  Exhibit
  I

  	
  —

  	
  Opinion
  of Davis Polk & Wardwell, Special Counsel for the Administrative Agent

  
	
  Exhibit
  J

  	
  —

  	
  Assignment
  and Assumption Agreement

  
					

 

4

FIVE-YEAR

CREDIT AGREEMENT

 

AGREEMENT dated as of March 1, 2001 among TENET HEALTHCARE
CORPORATION, the LENDERS, MANAGING AGENTS, CO-AGENTS and SWINGLINE BANK party
hereto, The Bank of New York, The Bank of Nova Scotia and Salomon Smith Barney
Inc., as Documentation Agents, Bank of America, N.A., as Syndication Agent, and
Morgan Guaranty Trust Company of New York, as Administrative Agent.

 

The parties hereto agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

SECTION 1.01.  Definitions.  The following terms, as used
herein, have the following meanings:

 

“Absolute Rate Auction”
means a solicitation of Money Market Quotes setting forth Money Market Absolute
Rates pursuant to Section 2.03.

 

“Adjusted London Interbank Offered
Rate” has the meaning set forth in Section 2.09(b).

 

“Administrative Agent”
means Morgan Guaranty Trust Company of New York, in its capacity as
Administrative Agent for the Lenders hereunder, and its successors in such
capacity.

 

“Administrative Questionnaire”
means, with respect to each Lender, an administrative questionnaire in the form
prepared by the Administrative Agent and submitted to the Administrative Agent
(with a copy to the Borrower) duly completed by such Lender.

 

“Affiliate” means, with
respect to any Person, (i) any Person that directly, or indirectly through
one or more intermediaries, controls such Person (a “Controlling Person”) or (ii) any Person which is
controlled by or is under common control with a Controlling Person.  As used herein, the term “control” means possession, directly or
indirectly, of the power to direct or cause the direction of the management of a
Person by voting securities, by contract or otherwise.

 

 

“Agents” means the
Administrative Agent, the Documentation Agents and the Syndication Agent, and “Agent” means any one of them.

 

“Aggregate LC Exposure”
means at any time the sum, without duplication, of (i) the aggregate
amount that is (or may thereafter become) available for drawing under all
Letters of Credit outstanding at such time and (ii) the aggregate unpaid
amount of all LC Reimbursement Obligations outstanding at such time.

 

“Applicable Lending Office”
means, with respect to any Lender, (i) in the case of its Base Rate Loans
and its participations in Letters of Credit, its Domestic Lending Office,
(ii) in the case of its Euro-Dollar Loans, its Euro-Dollar Lending Office
and (iii) in the case of its Money Market Loans, its Money Market Lending
Office.

 

“Approved Fund” means any
Fund that is managed (whether as manager or administrator) by (i) a Lender,
(ii) an affiliate of a Lender or (iii) an entity or an affiliate of an entity
that administers or manages a Lender.

 

“Availability Period”
means the period from and including the Closing Date to but excluding the
Termination Date.

 

“Base Rate” means, for any
day, a rate per annum equal to the higher of (i) the Prime Rate for such
day and (ii) the sum of 1⁄2 of 1% plus the Federal Funds Rate for such day.

 

“Base Rate Borrowing”
means a borrowing of Base Rate Loans pursuant to Section 2.01 or 2.16(h).

 

“Base Rate Loan” means a
Syndicated Loan which bears interest at the Base Rate (or any higher rate
determined pursuant to Section 2.09(a))
pursuant to the applicable Notice of Syndicated Borrowing or Notice of Interest
Rate Election or the provisions of Section 2.16(h) or Article 8.

 

“Borrower” means Tenet
Healthcare Corporation, a Nevada corporation, and its successors.

 

“Borrower’s Existing Credit Agreement”
means the $2,800,000,000 Credit Agreement dated as of January 30, 1997, as
amended, among the Borrower and the Lenders, Managing Agents and Co-Agents
party thereto, Bank of America, N.A. as Syndication Agent, The Bank of New York
and The Bank of Nova Scotia, as Documentation Agents, and Morgan Guaranty Trust
Company of

 

2

 

New York as Administrative
Agent, as in effect immediately before the Closing Date.

 

“Borrowing” means a
Syndicated Borrowing, a Money Market Borrowing or a Swingline Borrowing.

 

“Closing Date” means the
date on which all the conditions set forth in Section 3.01 have been satisfied (or waived in
accordance with Section 9.05).

 

“Co-Agents” means the
Lenders designated as Co-Agents on the signature pages hereof, in their
respective capacities as Co-Agents in connection with the credit facility
provided hereunder.

 

“Commitment” means
(i) with respect to any Lender listed on the Commitment Schedule, the
amount set forth opposite its name on the Commitment Schedule as its
Commitment or (ii) with respect to any Eligible Assignee, the amount of
the transferor Lender’s Commitment assigned to such Eligible Assignee pursuant
to Section 9.06(c), in each
case as such amount may be reduced from time to time pursuant to Section 2.12 or changed as result of an assignment
pursuant to Section 9.06(c).  The term “Commitment”
does not include the Swingline Commitment.

 

“Commitment Percentage”
means, with respect to any Lender at any time, the percentage which the amount
of such Lender’s Commitment at such time represents of the aggregate amount of
all the Lenders’ Commitments at such time. 
At any time after the Commitments shall have terminated, the term “Commitment Percentage” shall refer to a
Lender’s Commitment Percentage immediately before such termination, adjusted to
reflect any subsequent assignments pursuant to Section 9.06(c).

 

“Commitment Schedule”
means the Commitment Schedule attached hereto.

 

“Consolidated EBITDA”
means, for any period of four consecutive Fiscal Quarters, the sum of (i)
operating income plus (ii) to the
extent deducted in determining such operating income, the sum of (x)
depreciation and amortization and (y) impairment and other unusual charges
(except, for any such period, to the extent that the aggregate amount of such
charges that do not constitute Non-Cash Charges reported by the Borrower for
all fiscal periods commenced after November 30, 2000 exceeds three percent
(3.0%) of the Borrower’s consolidated total assets at the end of such
four-quarter period), in each case for the Borrower and its Subsidiaries on a
consolidated basis and determined (A) on a Pro Forma Basis and (B) in a manner
consistent with the determination of the amount of any

 

3

 

thereof reported in the
consolidated statement of income for the Fiscal Year ended May 31, 2000
included in the Borrower’s annual report to shareholders for such Fiscal Year, plus (iii) without duplication of any
amounts described in clause (ii)(y), to the extent deducted in determining such
operating income, (A) charges in an aggregate amount not in excess of
$225,000,000 recorded in the Fiscal Quarter ended September 30, 2003, and
(B) charges in excess of 10.0% of net operating revenue in the Fiscal Quarter
in which any such charges are recorded and in an aggregate amount not in excess
of $250,000,000 recorded after the Fiscal Quarter ended September 30,
2003, in each case in conjunction with the Borrower’s analysis of its accounts
receivable, including changes in the Borrower’s accounting policy for provision
for doubtful collection of accounts.

 

“Consolidated Interest Expense”
means, for any period of four consecutive Fiscal Quarters, the consolidated
interest expense of the Borrower and its Subsidiaries for such period,
determined on a Pro Forma Basis.

 

“Consolidated Net Worth”
means, at any time, the consolidated stockholders’ equity of the Borrower and
its Subsidiaries at such time.

 

“Consolidated Rental Expense”
means, for any period of four consecutive Fiscal Quarters, the consolidated
rental expense of the Borrower and its Subsidiaries for such period, determined
on a Pro Forma Basis.

 

“Consolidated Total Debt”
means at any time, without duplication, the sum of (i) the consolidated Debt of
the Borrower and its Subsidiaries, minus (ii) the consolidated amount of
unrestricted cash and cash equivalents of the Borrower and its Subsidiaries
which are not subject to Liens, to the extent such amount exceeds the aggregate
principal amount of Loans then outstanding.

 

“Continuing Director”
means (i) any individual who is a director of the Borrower on the date of
this Agreement and (ii) any individual who becomes a director of the
Borrower after the date of this Agreement and is elected or nominated for
election as a director of the Borrower by a majority of the individuals who
were Continuing Directors immediately before such election or nomination.

 

“Credit Exposure” means,
with respect to any Lender at any time, (i) the amount of its Commitment
at such time or (ii) if its Commitment shall have terminated, an amount
equal to the sum of the aggregate outstanding principal amount of its Loans
plus its LC Exposure at such time plus any participation in Swingline Loans
held by it pursuant to Section 2.16(h).

 

4

 

“Date of Determination”,
when used with respect to determining any amount for any period of four
consecutive Fiscal Quarters, means (i) the last day of such period, if
such amount is being determined for purposes of Section 5.11 or (ii) the day as of which the
debt ratio is being determined, if such amount is being determined for purposes
of Section 5.09.

 

“Debt” of any Person means
at any date, without duplication, (i) all obligations of such Person for
borrowed money, (ii) all obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments, (iii) all obligations of such
Person to pay the deferred purchase price of property or services, except trade
accounts payable arising in the ordinary course of business and deferred
compensation payable to members of management of such Person, (iv) all
obligations of such Person as lessee which are capitalized in accordance with
GAAP, (v) all obligations pursuant to any Synthetic Lease, (vi) all Debt
secured by a Lien on any asset of such Person, whether or not such Debt is
otherwise an obligation of such Person (such Debt of such Person to be in a
principal amount equal to the lesser of (x) the outstanding principal amount of
the Debt so secured and (y) the book value of such asset or assets) and (vii)
all Guarantees by such Person of obligations of other Persons of the types
described in the foregoing clauses (i) through (vi), inclusive (any such
Guarantee to be included in any calculation of the amount of such Person’s Debt
at an amount equal to the principal amount guaranteed thereby).  If such Person Guarantees Debt of another Person
by causing a letter of credit to be issued in support thereof, the “Debt” of
such Person includes (without duplication) such Person’s obligation to
reimburse the issuing bank for drawings (including any future drawings) in
respect of principal under such letter of credit.

 

“Default” means any
condition or event which constitutes an Event of Default or which with the
giving of notice or lapse of time or both would, unless cured or waived, become
an Event of Default.

 

“Domestic Business Day”
means any day except a Saturday, Sunday or other day on which commercial banks
in New York City are authorized by law to close.

 

“Domestic Lending Office”
means, as to each Lender, its office located at its address set forth in its
Administrative Questionnaire (or identified in its Administrative Questionnaire
as its Domestic Lending Office) or such other office as such Lender may
hereafter designate as its Domestic Lending Office by notice to the Borrower
and the Administrative Agent.

 

“Eligible Assignee” means
(a) a Lender; (b) an affiliate of a Lender; (c) an Approved Fund; and (d) any
other Person (other than a natural Person) approved

 

5

 

by the Administrative Agent,
the Swingline Bank and each LC Issuing Bank having a Letter of Credit
outstanding and, unless an Event of Default has occurred and is continuing, the
Borrower (each such approval not to be unreasonably withheld or delayed). If
the consent of the Borrower to an assignment or to an Eligible Assignee is
required hereunder (including a consent to an assignment which does not meet
the minimum assignment amount threshold), the Borrower shall be deemed to have
given its consent five Domestic Business Days after the date notice thereof has
been delivered to the Borrower by the assigning Lender (through the
Administrative Agent) unless such consent is expressly refused by the Borrower
prior to such fifth Domestic Business Day.

 

“Environmental Laws” means
any and all federal, state and local statutes, laws, judicial decisions,
regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions,
permits, concessions, grants, franchises, licenses, agreements and other
governmental restrictions relating to the environment, the effect of the
environment on human health or to emissions, discharges or releases of
pollutants, contaminants, Hazardous Substances or wastes into the environment
including, without limitation, ambient air, surface water, ground water or
land, or otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of pollutants,
contaminants, Hazardous Substances or wastes or the clean-up or other
remediation thereof.

 

“Equity Interest” means
(i) in the case of a corporation, any shares of its capital stock,
(ii) in the case of a partnership, any partnership interest (whether
general or limited), (iii) in the case of any other business entity, any
participation or other interest in the equity or profits thereof or
(iv) any warrant, option or other right to acquire any Equity Interest
described in the foregoing clauses  (i), (ii) and (iii), other than a
right to convert a debt security into, or exchange a debt security for, any
such Equity Interest.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, or any successor statute.

 

“ERISA Group” means the
Borrower, its Subsidiaries and all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with the Borrower or any Subsidiary, are treated
as a single employer under Section 414 of the Internal Revenue Code.

 

“Euro-Dollar Borrowing”
means a borrowing pursuant to Section 2.01
of Euro-Dollar Loans having the same initial Interest Period.

 

6

 

“Euro-Dollar Business Day”
means any Domestic Business Day on which commercial banks are open for
international business (including dealings in dollar deposits) in London.

 

“Euro-Dollar Lending Office”
means, as to each Lender, its office, branch or Affiliate located at its
address set forth in its Administrative Questionnaire (or identified in its
Administrative Questionnaire as its Euro-Dollar Lending Office) or such other
office, branch or Affiliate of such Lender as it may hereafter designate as its
Euro-Dollar Lending Office by notice to the Borrower and the Administrative
Agent.

 

“Euro-Dollar Loan” means a
Syndicated Loan which bears interest at a Euro-Dollar Rate pursuant to the
applicable Notice of Syndicated Borrowing or Notice of Interest Rate Election.

 

“Euro-Dollar Margin” means
a rate per annum determined in accordance with the Pricing Schedule.

 

“Euro-Dollar Rate” means a
rate of interest determined pursuant to Section 2.09(b) or (c) on the basis of an Adjusted London
Interbank Offered Rate.

 

“Euro-Dollar Reference Banks”
means the principal London offices of Morgan Guaranty Trust Company of New
York, Bank of America, N.A., The Bank of New York, The Bank of Nova Scotia and
Citicorp USA, Inc.

 

“Euro-Dollar Reserve Percentage”
has the meaning set forth in Section 2.09(b)
..

 

“Events of Default” has
the meaning set forth in Section 6.01.

 

“Evergreen Letter of Credit”
means a Letter of Credit that is automatically extended unless the relevant LC
Issuing Bank gives notice to the beneficiary thereof stating that such Letter
of Credit will not be extended.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

“Facility Fee Rate” means
a rate per annum determined in accordance with the Pricing Schedule.

 

“Federal Funds Rate”
means, for any day, the rate per annum (rounded upward, if necessary, to the
nearest 1/100th of 1%) equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers on such day, as published by

 

7

 

the Federal Reserve Bank of New
York on the Domestic Business Day next succeeding such day, provided that (i) if such day is not
a Domestic Business Day, the Federal Funds Rate for such day shall be such rate
on such transactions on the next preceding Domestic Business Day as so
published on the next succeeding Domestic Business Day, and (ii) if no
such rate is so published on such next succeeding Domestic Business Day, the
Federal Funds Rate for such day shall be the average rate quoted to Morgan
Guaranty Trust Company of New York on such day on such transactions as
determined by the Administrative Agent.

 

“Financial Obligations” of
any Person means at any date, without duplication:

 

(i)                                     Debt of such
Person,

 

(ii)                                  all obligations of
such Person to reimburse any bank or other Person in respect of amounts paid
under a letter of credit or similar instrument or to make any payment pursuant
to a Hedging Obligation, and

 

(iii)                               all Guarantees by such
Person of Financial Obligations of other Persons of the types described in
clauses  (i) and (ii) of this definition.

 

“Financing Documents”
means this Agreement (including the Schedules and Exhibits hereto), the Notes
and the Swingline Note, and “Financing
Document” means any one of them.

 

“Fiscal Quarter” means a
fiscal quarter of the Borrower.

 

“Fiscal Year” means a
fiscal year of the Borrower.

 

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

 

“GAAP” means at any time
generally accepted accounting principles as then in effect in the United
States, applied on a basis consistent (except for changes with which the
Borrower’s independent public accountants have concurred) with the most recent
audited consolidated financial statements of the Borrower and its Subsidiaries
theretofore delivered to the Lenders.

 

“Group of Loans” means at
any time a group of Syndicated Loans consisting of (i) all Syndicated
Loans which are Base Rate Loans at such time or (ii) all Syndicated Loans
which are Euro-Dollar Loans having the same Interest

 

8

 

Period at such time; provided that, if a Loan of any particular
Lender is converted to or made as a Base Rate Loan pursuant to Section 8.02 or 8.05,
such Loan shall be included in the same Group or Groups of Loans from time to
time as it would have been in if it had not been so converted or made.

 

“Guarantee” by any Person
means any obligation, contingent or otherwise, of such Person directly or
indirectly guaranteeing any Debt or other payment obligation of any other
Person, including without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of such Person
(i) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Debt or other payment obligation (whether arising by virtue of
partnership arrangements, by agreement to keep-well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement
conditions or otherwise) or (ii) entered into for the purpose of assuring
in any other manner the obligee of such Debt or other payment obligation of the
payment thereof or to protect such obligee against loss in respect thereof (in
whole or in part), provided that
the term Guarantee shall not include endorsements for collection or deposit in
the ordinary course of business.  The
term “Guarantee” used as a verb
has a corresponding meaning.

 

“Hazardous Substances”
means any toxic, radioactive, caustic or otherwise hazardous substance,
including petroleum, its derivatives, by-products and other hydrocarbons, or
any substance having any constituent elements displaying any of the foregoing
characteristics.

 

“Healthcare Business”
means any going concern healthcare business or any other going concern business
that is related or ancillary to one or more Healthcare Facilities or healthcare
businesses.

 

“Healthcare Facility”
means a hospital, outpatient clinic, long-term care facility, medical office
building or other comparable facility that is used or useful in providing
healthcare services.

 

“Hedging Obligation”
means, with respect to any Person, any obligation of such Person under
(i) any interest rate swap agreement, interest rate cap agreement or
interest rate collar agreement, (ii) any foreign exchange contract or
currency swap agreement or (iii) any other agreement or arrangement of a
type designed to protect a Person against fluctuations in interest rates or
currency exchange rates.

 

“Indemnitee” has the
meaning set forth in Section 9.03(b).

 

9

 

“Interest Period”
means:  (1)  with respect to
each Euro-Dollar Loan, the period commencing on the date of borrowing specified
in the applicable Notice of Syndicated Borrowing or on the date specified in an
applicable Notice of Interest Rate Election and ending one, two, three or six months  thereafter, as the Borrower may elect in the
applicable notice; provided that:

 

(a)                                  any Interest Period
which would otherwise end on a day which is not a Euro-Dollar Business Day
shall be extended to the next succeeding Euro-Dollar Business Day unless such
Euro-Dollar Business Day falls in another calendar month, in which case such
Interest Period shall end on the next preceding Euro-Dollar Business Day;

 

(b)                                 any Interest Period
which begins on the last Euro-Dollar Business Day of a calendar month (or on a
day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall, subject to
clause (c) below, end on the last Euro-Dollar Business Day of a
calendar month; and

 

(c)                                  any Interest Period
which would otherwise end after the Termination Date shall end on the
Termination Date;

 

(2)                                  with
respect to each Money Market LIBOR Borrowing, the period commencing on the date
of such Borrowing and ending such whole number of months thereafter as the
Borrower may elect in accordance with Section 2.03; provided
that:

 

(a)                                  any Interest Period
which would otherwise end on a day which is not a Euro-Dollar Business Day
shall be extended to the next succeeding Euro-Dollar Business Day unless such
Euro-Dollar Business Day falls in another calendar month, in which case such
Interest Period shall end on the next preceding Euro-Dollar Business Day;

 

(b)                                 any Interest Period
which begins on the last Euro-Dollar Business Day of a calendar month (or on a
day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall, subject to
clause (c) below, end on the last Euro-Dollar Business Day of a
calendar month; and

 

(c)                                  any Interest Period
which would otherwise end after the Termination Date shall end on the
Termination Date; and

 

(3)                                  with
respect to each Money Market Absolute Rate Borrowing, the period commencing on
the date of such Borrowing and ending such number of

 

10

 

days thereafter (but not less
than 7 days) as the Borrower may elect in accordance with Section 2.03; provided
that:

 

(a)                                  any Interest Period
which would otherwise end on a day which is not a Euro-Dollar Business Day
shall be extended to the next succeeding Euro-Dollar Business Day; and

 

(b)                                 any Interest Period
which would otherwise end after the Termination Date shall end on the
Termination Date.

 

“Internal Revenue Code”
means the Internal Revenue Code of 1986, as amended, or any successor statute.

 

“Investment” means, with
respect to any Person, any investment by such Person in any other Person
(including an Affiliate) in the form of loans, capital contributions (excluding
commission, travel and similar advances to officers and employees made in the
ordinary course of business), purchases or other acquisitions for consideration
of Debt, Equity Interests or other securities and all other items that are or
would be classified as investments on a balance sheet prepared in accordance
with GAAP.

 

“Investment Grade Rating”
means a rating of senior long-term unsecured debt securities of the Borrower
without any third party credit support as (i) BBB- or higher by S&P
and (ii) Baa3 or higher by Moody’s.

 

“Joint Lead Arrangers”
means J.P. Morgan Securities Inc. and Banc of America Securities LLC.

 

“LC Exposure” means, with
respect to any Lender at any time, an amount equal to its Commitment Percentage
of the Aggregate LC Exposure at such time.

 

“LC Fee Rate” means, at
any date, a rate per annum equal to the Euro-Dollar Margin at such date.

 

“LC Indemnitees” has the
meaning set forth in Section 2.17(m).

 

“LC Issuing Bank” has the
meaning set forth in Section 2.17(a).

 

“LC Office” means, with
respect to any LC Issuing Bank, the office at which it books any Letter of
Credit issued by it.

 

“LC Payment Date” has the
meaning set forth in Section 2.17(i).

 

11

 

“LC Reimbursement Due Date”
has the meaning set forth in Section 2.17(j).

 

“LC Reimbursement Obligations”
means, at any time, all obligations of the Borrower to reimburse the LC Issuing
Banks for amounts paid by the LC Issuing Banks in respect of drawings under
Letters of Credit, including any portion of any such obligation to which a
Lender has become subrogated pursuant to Section 2.17(k).

 

“Lender” means each lender
listed on the Commitment Schedule, each Eligible Assignee which becomes a
Lender pursuant to Section 9.06(c),
and their respective successors.  The
term “Lender” does not include the
Swingline Bank in its capacity as such.

 

“Lending Parties” means
the Lenders, the LC Issuing Banks, the Managing Agents, the Co-Agents, the
Swingline Bank and the Agents.

 

“Letter of Credit” means a
letter credit issued hereunder by an LC Issuing Bank.

 

“Leverage Ratio” has the
meaning set forth in Section 5.09.

 

“LIBOR Auction” means a
solicitation of Money Market Quotes setting forth Money Market Margins based on
the London Interbank Offered Rate pursuant to Section 2.03.

 

“Lien” means, with respect
to any asset, any mortgage, lien, pledge, charge, security interest or
encumbrance of any kind, or any other type of preferential arrangement that has
substantially the same practical effect as a security interest, in respect of
such asset.  For purposes of this
Agreement, the Borrower or any Subsidiary shall be deemed to own subject to a
Lien any asset which it has acquired or holds subject to the interest of a
vendor or lessor under any conditional sale agreement, capital lease or other
title retention agreement relating to such asset.

 

“Loan” means a Syndicated
Loan or a Money Market Loan and “Loans”
means both of the foregoing.  The term “Loan” does not include a Swingline Loan.

 

“London Interbank Offered Rate”
has the meaning set forth in Section 2.09(b)
..

 

12

 

“Managing Agents” means
the Lenders designated as Managing Agents on the signature pages hereof, in
their respective capacities as Managing Agents in connection with the credit
facility provided hereunder.

 

“Material Adverse Effect”
means a material adverse effect on the business, operations, properties,
financial condition or prospects of the Borrower and its Subsidiaries,
considered as a whole.

 

“Material Financial Obligations”
means non-contingent Financial Obligations (other than the Notes, the Swingline
Note and the LC Reimbursement Obligations) of the Borrower and/or one or more
Subsidiaries, arising in one or more related transactions, in an aggregate
principal or face amount exceeding $70,000,000; provided that, for purposes of this definition and clause
(g) of Section 6.01, (i) contingent obligations of the
Borrower or any Subsidiary to reimburse a bank or other Person for amounts not
yet drawn under a letter of credit or similar instrument shall be deemed to be
non-contingent (and to have been accelerated) if they are required to be
prepaid or cash collateralized as a result of a default under the relevant
reimbursement agreement, (ii) contingent obligations of the Borrower or
any Subsidiary under any Hedging Obligation shall be deemed to be
non-contingent (and to have been accelerated) if such Hedging Obligation is
terminated by reason of a default by the Borrower or any Subsidiary and (iii) in no event shall
the Metrocrest Lease, or any obligation of the Borrower or any of its Subsidiaries
thereunder or with respect thereto or under or with respect to any financing of
the Healthcare Facility subject to the Metrocrest Lease by the Metrocrest
Hospital Authority or any successor owner of such facility, constitute a
Material Financial Obligation.

 

“Material Plan” means at
any time a Plan or Plans having aggregate Unfunded Liabilities in excess of
$70,000,000.

 

“Material Subsidiary”
means any Subsidiary of the Borrower, except a Subsidiary that has assets of
less than $70,000,000 and liabilities of less than $70,000,000.

 

“Metrocrest Lease” means
the Fifth Amendment and Restatement of Lease Agreement dated as of
November 1, 1994 between Metrocrest Hospital Authority, as lessor, and
Tenet HealthSystems Hospitals Dallas, Inc. (formerly NME Hospitals Dallas,
Inc.), as lessee, as the same has been or may be amended, restated, modified,
renewed or replaced from time to time, which Metrocrest Lease shall be limited
to the lease of the RHD Memorial Medical Center, the Trinity Medical Center and
related facilities, including, without limitation, medical office buildings and
parking structures.

 

13

 

“Metrocrest Reimbursement Agreement”
means the Letter of Credit and Reimbursement Agreement dated as of
November 1, 1994 among the Borrower, the banks party thereto, and The Bank
of New York, as Issuing Bank and Agent thereunder, as amended from time to
time.

 

“Money Market Absolute Rate”
has the meaning set forth in Section 2.03(d).

 

“Money Market Absolute Rate Loan”
means a loan made or to be made by a Lender pursuant to an Absolute Rate
Auction.

 

“Money Market Borrowing”
means a borrowing of Money Market Loans pursuant to a LIBOR Auction or an
Absolute Rate Auction.

 

“Money Market Lending Office”
means, as to each Lender, its Domestic Lending Office or such other office,
branch or Affiliate of such Lender as it may hereafter designate as its Money
Market Lending Office by notice to the Borrower and the Administrative Agent; provided that any Lender may from time to
time by notice to the Borrower and the Administrative Agent designate separate
Money Market Lending Offices for its Money Market LIBOR Loans, on the one hand,
and its Money Market Absolute Rate Loans, on the other hand, in which case all
references herein to the Money Market Lending Office of such Lender shall be
deemed to refer to either or both of such offices, as the context may require.

 

“Money Market LIBOR Loan”
means a loan made or to be made by a Lender pursuant to a LIBOR Auction (including
such a loan bearing interest at the Base Rate pursuant to Section 8.01(a)).

 

“Money Market Loan” means
a Money Market LIBOR Loan or a Money Market Absolute Rate Loan.

 

“Money Market Margin” has
the meaning set forth in Section 2.03(d).

 

“Money Market Quote” means
an offer by a Lender to make a Money Market Loan in accordance with
Section 2.03.

 

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

 

“Multiemployer Plan” means
at any time an employee pension benefit plan within the meaning of
Section 4001(a)(3) of ERISA to which any member of the ERISA Group is
then making or accruing an obligation to make contributions or has within the
preceding five plan years made contributions, including for these

 

14

 

purposes any Person which
ceased to be a member of the ERISA Group during such five year period.

 

“Non-Cash Charge” means a
non-cash charge that is (i) deducted in the determination of (A) the
Borrower’s consolidated operating income for any Fiscal Quarter (for purposes
of any determination of Consolidated EBITDA) or (B) the Borrower’s
consolidated net income for any Fiscal Quarter (for purposes of Section 5.10), and (ii) does not reflect a
current expenditure of cash or reserve or accrual for a future expenditure of
cash.

 

“Non-Recourse Purchase Money Debt”
of any Person means Debt incurred to finance additions to its property, plant
and equipment (or to refinance Debt incurred for such purpose); provided that the lender or other obligee
of such Debt has no recourse (except for breach of representations, warranties
and/or covenants customary in asset-based financing) to assets of such Person,
the Borrower or any Subsidiary other than the assets financed or refinanced by
such Debt and cash flows attributable to such assets.

 

“Notes” means promissory
notes of the Borrower, substantially in the form of Exhibit A hereto, issued
hereunder to evidence the obligation of the Borrower to repay the Loans (other
than the Swingline Loans), and “Note”
means any one of such promissory notes.

 

“Notice of Borrowing”
means a Notice of Syndicated Borrowing (as defined in Section 2.02), a Notice of Money Market Borrowing
(as defined in Section 2.03(f))
or a Notice of Swingline Borrowing (as defined in Section 2.16(b)).

 

“Notice of Interest Rate Election”
has the meaning set forth in Section 2.10.

 

“Outstanding Committed Amount”
means, with respect to any Lender at any time, the sum of (i) the
outstanding principal amount of each of its Syndicated Loans, (ii) each
outstanding participation in Swingline Loans (if any) held by it pursuant to
Section 2.16(h) and
(iii) its LC Exposure, all determined at such time after giving effect to
any prior assignments by or to such Lender pursuant to Section  9.06(c).

 

“Parent” means, with
respect to any Lender, any Person controlling such Lender.

 

“Participant” has the
meaning set forth in Section 9.06(b).

 

15

 

“Person” means an
individual, a corporation, a partnership, an association, a trust or any other
entity or organization, including a government or political subdivision or an
agency or instrumentality thereof.

 

“Plan” means at any time
an employee pension benefit plan (other than a Multiemployer Plan) which is
covered by Title IV of ERISA or subject to the minimum funding standards under
Section 412 of the Internal Revenue Code and either (i) is
maintained, or contributed to, by any member of the ERISA Group for employees
of any member of the ERISA Group or (ii) has at any time within the
preceding five years been maintained, or contributed to, by any Person which
was at such time a member of the ERISA Group for employees of any Person which
was at such time a member of the ERISA Group.

 

“Pricing Schedule” means
the Pricing Schedule attached hereto.

 

“Prime Rate” means the
rate of interest publicly announced by Morgan Guaranty Trust Company of New
York in New York City from time to time as its Prime Rate.

 

“Pro Forma Basis”, when
used with respect to determining any amount for any period of four consecutive
Fiscal Quarters, means that if, at any time after such period began and on or
before the Date of Determination, the Borrower or any of its Subsidiaries
acquired or disposed of (i) an Equity Interest in a Person that is (or by
reason of such acquisition becomes) a Subsidiary or (ii) a Healthcare
Facility or Healthcare Business, such amount shall be determined (to the extent
practicable) as if such Equity Interest, Healthcare Facility or Healthcare
Business had been acquired or disposed of at the beginning of such period (and
as if the consideration therefor had been given or received and any related
incurrence or repayment of Debt had occurred at such time).

 

“Regulation U” means
Regulation U of the Board of Governors of the Federal Reserve System, as in
effect from time to time.

 

“Required Lenders” means
at any time Lenders having more than 50% of the aggregate amount of the Credit
Exposures at such time.

 

“Restricted Payment” has
the meaning set forth in Section 5.12.

 

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

 

“SEC” means the United
States Securities and Exchange Commission.

 

16

 

“Senior Officer of the Borrower”
means an Executive Vice President, a Senior Vice President or the Treasurer of
the Borrower.

 

“Subsidiary” means, as to
any Person at any date, any corporation or other entity the accounts of which
would be consolidated with those of such Person in its consolidated financial
statements if such statements were prepared as of such date in accordance with
GAAP.  Unless otherwise specified, “Subsidiary” means a Subsidiary of the
Borrower.

 

“Swingline Availability Period”
means the period from and including the Closing Date to but excluding the
Swingline Maturity Date.

 

“Swingline Bank” means Morgan
Guaranty Trust Company of New York, in its capacity as the Swingline Bank under
the swingline facility described in Section 2.16, and its successors in such capacity.

 

“Swingline Borrowing”
means a borrowing of a Swingline Loan pursuant to Section 2.16(a).

 

“Swingline Commitment”
means the obligation of the Swingline Bank to make Swingline Loans to the
Borrower in aggregate principal amount at any one time outstanding not to
exceed $10,000,000.

 

“Swingline Loan” means a
loan made by the Swingline Bank pursuant to Section 2.16(a).

 

“Swingline Maturity Date”
means the day that is 30 days before the Termination Date.

 

“Swingline Note” has the
meaning set forth in Section 2.16(d).

 

“Syndicated Borrowing”
means a Base Rate Borrowing pursuant to Section 2.01 or Section 2.16(h) or a Euro-Dollar Borrowing
pursuant to Section 2.01.

 

“Syndicated Loan” means a
loan made pursuant to Section 2.01 or Section 2.16(h); provided
that, if any such loan or loans (or portions thereof) are combined or
subdivided pursuant to a Notice of Interest Rate Election, the term “Syndicated Loan” shall refer to the
combined principal amount resulting from such combination or to each of the
separate principal amounts resulting from such subdivision, as the case may be.

 

17

 

“Synthetic Lease” means a
lease as to which (i) the obligations of the lessee are not capitalized in
accordance with GAAP but (ii) the lessee is treated as owner of the leased
property for purposes of the Internal Revenue Code.

 

“Termination Date” means
March 1, 2006 or, if such day is not a Euro-Dollar Business Day, the next
preceding Euro-Dollar Business Day.

 

“Unfunded Liabilities”
means, with respect to any Plan at any time, the amount (if any) by which
(i) the value of all benefit liabilities under such Plan, determined on a
plan termination basis using the assumptions prescribed by the PBGC for
purposes of Section 4044 of ERISA, exceeds (ii) the fair market value
of all Plan assets allocable to such liabilities under Title IV of ERISA
(excluding any accrued but unpaid contributions), all determined as of the then
most recent valuation date for such Plan, but only to the extent that such
excess represents a potential liability of a member of the ERISA Group to the
PBGC or any other Person under Title IV of ERISA.

 

“United States” means the
United States of America, including the States and the District of Columbia,
but excluding its territories and possessions.

 

SECTION 1.02.  Accounting Terms and
Determinations.  Unless
otherwise specified herein, all accounting terms used herein shall be
interpreted, all accounting determinations hereunder shall be made, and all
financial statements required to be delivered hereunder shall be prepared in
accordance with GAAP as in effect from time to time; provided that, if the Borrower notifies the Administrative
Agent that the Borrower wishes to amend any provision hereof to eliminate the
effect of any change in GAAP on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Required Lenders wish to
amend any provision hereof for such purpose), then such provision shall be
applied on the basis of GAAP as in effect immediately before the relevant
change in GAAP became effective, until either such notice is withdrawn or such
provision is amended in a manner satisfactory to the Borrower and the Required
Lenders.

 

ARTICLE 2

 

THE CREDITS

 

SECTION 2.01.  Syndicated Borrowings.  Each Lender severally agrees, on
the terms and conditions set forth in this Agreement, to make loans to the
Borrower pursuant to this Section from time to time during the
Availability Period; provided
that, immediately after each such loan is made, such Lender’s

 

18

 

Outstanding Committed Amount
shall not exceed its Commitment.  Each
borrowing under this Section shall be a Syndicated Borrowing made from the
several Lenders ratably in proportion to their respective Commitments.  Each such Syndicated Borrowing shall be in
an aggregate amount of $10,000,000 or any larger multiple of $1,000,000; provided that (i) any such Syndicated
Borrowing may be in the aggregate amount of the unused Commitments and
(ii) if such Syndicated Borrowing is made on the Swingline Maturity Date,
such Syndicated Borrowing may be in the aggregate amount of the Swingline Loans
outstanding on such date.  Within the
foregoing limits, the Borrower may borrow under this Section, repay, or to the
extent permitted by Section 2.07,
prepay Syndicated Loans and reborrow at any time during the Availability Period
under this Section.

 

SECTION 2.02.  Notice of Syndicated
Borrowing.  The Borrower
shall give the Administrative Agent notice (a “Notice of Syndicated Borrowing”) not later than (x) 11:00
A.M. (New York City time) on the date of each Base Rate Borrowing and
(y) 1:00 P.M. (New York City time) on the third Euro-Dollar Business Day
before each Euro-Dollar Borrowing, specifying:

 

(i)                                     the date of such
Borrowing, which shall be a Domestic Business Day in the case of a Base Rate
Borrowing or a Euro-Dollar Business Day in the case of a Euro-Dollar Borrowing,

 

(ii)                                  the aggregate amount
of such Borrowing,

 

(iii)                               whether such Borrowing
is to be a Base Rate Borrowing or a Euro-Dollar Borrowing, and

 

(iv)                              in the case of a
Euro-Dollar Borrowing, the duration of the initial Interest Period applicable
thereto.

 

Each Interest Period specified
in a Notice of Syndicated Borrowing shall comply with the provisions of the
definition of Interest Period.

 

SECTION 2.03.  Money Market Borrowings.

 

(a)                                  The Money Market Option.  At any time during the Availability Period,
the Borrower may, as set forth in this Section, request the Lenders to make
offers to make Money Market Loans to the Borrower; provided that, immediately after any such Money Market Loans
are made and any Loans to be repaid substantially concurrently therewith are
repaid:

 

19

 

(i)                                     if the Borrower
has an Investment Grade Rating, the aggregate outstanding principal amount of
the Money Market Loans shall be limited only by Section 3.03(c);

 

(ii)                                  if the Borrower does
not have an Investment Grade Rating, but its senior long-term unsecured debt
securities without any third-party credit support are rated BB+ or higher by
S&P and Ba1 or higher by Moody’s, the aggregate outstanding principal
amount of the Money Market Loans shall not exceed the lesser of (x) the
amount permitted by Section 3.03(c)
or (y) $500,000,000;

 

(iii)                               if the Borrower’s senior
long-term unsecured debt securities without any third-party credit support are
not rated BB+ or higher by S&P and Ba1 or higher by Moody’s, but are rated
BB or higher by S&P and Ba2 or higher by Moody’s, the aggregate outstanding
principal amount of the Money Market Loans shall not exceed the lesser of
(x) the amount permitted by Section 3.03(c)
or (y) $250,000,000; and

 

(iv)                              if the Borrower’s senior
long-term unsecured debt securities without any third-party credit support are
not rated BB or higher by S&P and Ba2 or higher by Moody’s, the Borrower may
not request or accept any offers to make Money Market Loans.

 

The Lenders may, but shall have
no obligation to, make such offers and the Borrower may, but shall have no
obligation to, accept any such offers.

 

(b)                                 Money Market Quote Request.  When the Borrower wishes to request offers
to make Money Market Loans under this Section, it shall transmit to the
Administrative Agent by telex or facsimile transmission a Money Market Quote
Request substantially in the form of Exhibit B hereto so as to be received no
later than 1:00 P.M. (New York City time) on (x) the fifth Euro-Dollar
Business Day prior to the date of Borrowing proposed therein, in the case of a
LIBOR Auction or (y) the Domestic Business Day next preceding the date of
Borrowing proposed therein, in the case of an Absolute Rate Auction (or, in
either case, such other time or date as the Borrower and the Administrative
Agent shall have mutually agreed and shall have notified to the Lenders not
later than the date of the Money Market Quote Request for the first LIBOR
Auction or Absolute Rate Auction for which such change is to be effective)
specifying:

 

(i)                                     the proposed date
of Borrowing, which shall be a Euro-Dollar Business Day in the case of a LIBOR
Auction or a Domestic Business Day in the case of an Absolute Rate Auction,

 

20

 

(ii)                                  the aggregate amount
of such Borrowing, which shall be $10,000,000 or a larger multiple of
$1,000,000;

 

(iii)                               the duration of the
Interest Period applicable thereto, subject to the provisions of the definition
of Interest Period, and

 

(iv)                              whether the Money Market
Quotes requested are to set forth a Money Market Margin or a Money Market
Absolute Rate.

 

The Borrower may request offers
to make Money Market Loans for more than one Interest Period in a single Money
Market Quote Request.  No Money Market
Quote Request shall be given within five Euro-Dollar Business Days (or such
other number of days as the Borrower and the Administrative Agent may agree) of
any other Money Market Quote Request.

 

(c)                                  Invitation for Money Market Quotes.  Promptly upon receipt of a Money Market
Quote Request, the Administrative Agent shall send to the Lenders by telex or
facsimile transmission an Invitation for Money Market Quotes substantially in
the form of Exhibit C hereto, which shall constitute an invitation by the
Borrower to each Lender to submit Money Market Quotes offering to make the
Money Market Loans to which such Money Market Quote Request relates in
accordance with this Section.

 

(d)                                 Submission and Contents of Money Market Quotes.  (i) Each Lender may submit a Money Market
Quote containing an offer or offers to make Money Market Loans in response to
any Invitation for Money Market Quotes. 
Each Money Market Quote must comply with the requirements of this
subsection (d) and must be submitted to the Administrative Agent by telex
or facsimile transmission at its offices specified in or pursuant to
Section 9.01 not later than
(x) 2:00 P.M. (New York City time) on the fourth Euro-Dollar Business Day
prior to the proposed date of Borrowing, in the case of a LIBOR Auction or
(y) 10:00 A.M. (New York City time) on the proposed date of Borrowing, in
the case of an Absolute Rate Auction (or, in either case, such other time or
date as the Borrower and the Administrative Agent shall have mutually agreed
and shall have notified to the Lenders not later than the date of the Money
Market Quote Request for the first LIBOR Auction or Absolute Rate Auction for
which such change is to be effective); provided
that Money Market Quotes submitted by the Administrative Agent (or any
affiliate of the Administrative Agent) in the capacity of a Lender may be
submitted, and may only be submitted, if the Administrative Agent or such
affiliate notifies the Borrower of the terms of the offer or offers contained
therein not later than (x) one hour prior to the deadline for the other
Lenders, in the case of a LIBOR Auction or (y) 15 minutes prior to the
deadline for the other Lenders, in the case of an Absolute Rate Auction.  Subject to Articles 3 and 6, any

 

21

 

Money Market Quote so made
shall be irrevocable except with the written consent of the Administrative
Agent given on the instructions of the Borrower.

 

(ii)                                  Each
Money Market Quote shall be substantially in the form of Exhibit D hereto and
shall in any case specify:

 

(A)                              the proposed date of
Borrowing,

 

(B)                                the principal amount of
the Money Market Loan for which each such offer is being made, which principal
amount (w) may be greater than or less than the Commitment of the quoting
Lender, (x) must be $10,000,000 or a larger multiple of $1,000,000,
(y) may not exceed the principal amount of Money Market Loans for which
offers were requested and (z) may be subject to an aggregate limitation as
to the principal amount of Money Market Loans for which offers being made by
such quoting Lender may be accepted,

 

(C)                                in the case of a LIBOR
Auction, the margin above or below the applicable London Interbank Offered Rate
(the “Money Market Margin”)
offered for each such Money Market Loan, expressed as a percentage (specified
to the nearest 1/10,000th of 1%) to be added to or subtracted from such base
rate,

 

(D)                               in the case of an
Absolute Rate Auction, the rate of interest per annum (specified to the nearest
1/10,000th of 1%) (the “Money Market Absolute
Rate”) offered for each such Money Market Loan, and

 

(E)                                 the identity of the
quoting Lender.

 

A Money Market Quote may set
forth up to five separate offers by the quoting Lender with respect to each
Interest Period specified in the related Invitation for Money Market Quotes.

 

(iii)                               Any
Money Market Quote shall be disregarded if it:

 

(A)                              is not substantially in
conformity with Exhibit D hereto or does not specify all of the information
required by subsection (d)(ii);

 

(B)                                contains qualifying,
conditional or similar language;

 

22

 

(C)                                proposes terms other
than or in addition to those set forth in the applicable Invitation for Money
Market Quotes; or

 

(D)                               arrives after the time
set forth in subsection (d)(i).

 

(e)                                  Notice to Borrower.  The Administrative Agent shall promptly
notify the Borrower of the terms of (x) any Money Market Quote submitted
by a Lender that is in accordance with subsection (d) and (y) any
Money Market Quote that amends, modifies or is otherwise inconsistent with a
previous Money Market Quote submitted by such Lender with respect to the same
Money Market Quote Request.  Any such
subsequent Money Market Quote shall be disregarded by the Administrative Agent
unless such subsequent Money Market Quote is submitted solely to correct a
manifest error in such former Money Market Quote.  The Administrative Agent’s notice to the Borrower shall specify
(A) the aggregate principal amount of Money Market Loans for which offers
have been received for each Interest Period specified in the related Money
Market Quote Request, (B) the respective principal amounts and Money
Market Margins or Money Market Absolute Rates, as the case may be, so offered
and (C) if applicable, limitations on the aggregate principal amount of
Money Market Loans for which offers in any single Money Market Quote may be
accepted.

 

(f)                                    Acceptance and Notice by Borrower.  Not later than (x) 1:00 P.M. (New
York City time) on the third Euro-Dollar Business Day prior to the proposed
date of Borrowing, in the case of a LIBOR Auction or (y) 11:00 A.M.
(New York City time) on the proposed date of Borrowing, in the case of an
Absolute Rate Auction (or, in either case, such other time or date as the
Borrower and the Administrative Agent shall have mutually agreed and shall have
notified to the Lenders not later than the date of the Money Market Quote
Request for the first LIBOR Auction or Absolute Rate Auction for which such
change is to be effective), the Borrower shall notify the Administrative Agent
of its acceptance or non-acceptance of the offers so notified to it pursuant to
subsection (e).  In the case of
acceptance, such notice (a “Notice of Money
Market Borrowing”) shall specify the aggregate principal amount of
offers for each Interest Period that are accepted.  Subject to the applicable limitation in
subsection (a) of this Section, the Borrower may accept any Money
Market Quote in whole or in part; provided
that:

 

(i)                                     the aggregate
principal amount of each Money Market Borrowing may not exceed the applicable
amount set forth in the related Money Market Quote Request,

 

(ii)                                  the principal amount
of each Money Market Borrowing must be $10,000,000 or a larger multiple of
$1,000,000,

 

23

 

(iii)                               acceptance of offers may
only be made on the basis of ascending Money Market Margins or Money Market
Absolute Rates, as the case may be, and

 

(iv)                              the Borrower may not
accept any offer that is described in subsection (d)(iii) or that
otherwise fails to comply with the requirements of this Agreement.

 

(g)                                 Allocation by Administrative Agent.  If offers are made by two or more Lenders
with the same Money Market Margins or Money Market Absolute Rates, as the case
may be, for a greater aggregate principal amount than the amount in respect of
which such offers are accepted for the related Interest Period, the principal
amount of Money Market Loans in respect of which such offers are accepted shall
be allocated by the Administrative Agent among such Lenders as nearly as
possible (in multiples of $1,000,000, as the Administrative Agent may deem
appropriate) in proportion to the aggregate principal amounts of such
offers.  Determinations by the
Administrative Agent of the amounts of Money Market Loans shall be conclusive
in the absence of manifest error.

 

SECTION 2.04.  Notice to Lenders; Funding of
Loans.  (a)  Upon receipt of a Notice of Syndicated
Borrowing or a Notice of Money Market Borrowing, the Administrative Agent shall
promptly notify each Lender participating in such Borrowing of the contents of
such Notice of Borrowing and such Lender’s share of such Borrowing.  Such Notice of Borrowing shall not thereafter
be revocable by the Borrower.

 

(b)                                 Not
later than 1:00 P.M. (New York City time) on the date of each such Borrowing,
each Lender participating therein shall make available its share of such
Borrowing, in Federal or other funds immediately available in New York City, to
the Administrative Agent at its address referred to in Section 9.01. 
Unless the Administrative Agent determines that any applicable condition
specified in Article 3 has not been satisfied, the Administrative Agent
shall (i) apply the funds so received from the Lenders to repay all
Swingline Loans (if any) then outstanding, together with interest accrued
thereon, and (ii) make the remainder of such funds available to the
Borrower at the Administrative Agent’s aforesaid address.

 

(c)                                  Unless
the Administrative Agent shall have received notice from a Lender prior to the
date of any such Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available to the
Administrative Agent on the date of such Borrowing in accordance with
subsection (b) of this Section and the Administrative Agent may,
in reliance upon

 

24

 

such assumption, make available
to the Borrower on such date a corresponding amount.  If and to the extent that such Lender shall not have so made its
share of such Borrowing available to the Administrative Agent, such Lender and
the Borrower severally agree to repay to the Administrative Agent forthwith on
demand such corresponding amount together with interest thereon, for each day
from the date such amount is made available to the Borrower until the date such
amount is repaid to the Administrative Agent, at (i) in the case of the
Borrower, a rate per annum equal to the higher of the Federal Funds Rate and
the interest rate applicable to such Borrowing pursuant to Section 2.09 and (ii) in the case of such
Lender, the Federal Funds Rate.  If such
Lender shall repay to the Administrative Agent such corresponding amount, such
amount so repaid shall constitute such Lender’s Loan included in such Borrowing
for purposes of this Agreement.  If the
Borrower shall repay such corresponding amount, such repayment shall not affect
any rights the Borrower may have against any defaulting Lender.

 

SECTION 2.05.  Notes.  (a)  The Borrower’s obligation to repay the Loans of each Lender shall
be evidenced by a single Note payable to the order of such Lender for the
account of its Applicable Lending Office.

 

(b)                                 Each
Lender may, by notice to the Borrower and the Administrative Agent, request
that its Base Rate Loans, its Euro-Dollar Loans or its Money Market Loans be
evidenced by a separate Note.  Each such
Note shall be substantially in the form of Exhibit A hereto, with appropriate
modifications to reflect the fact that it evidences solely the relevant type of
Loans.  Each reference in this Agreement
to a “Note” or the “Notes” of such Lender shall be deemed to
refer to and include any or all of such Notes, as the context may require.

 

(c)                                  Upon
receipt of each Lender’s Note pursuant to Section 3.01(b), the Administrative Agent shall
forward such Note to such Lender.  Each
Lender shall record the date, amount and type of each Loan made by it and the
date and amount of each payment of principal made with respect thereto, and
may, if such Lender so elects in connection with any transfer or enforcement of
its Note, endorse on the schedule forming a part thereof appropriate
notations to evidence the foregoing information with respect to each such Loan
evidenced thereby then outstanding; provided
that the failure of any Lender to make any such recordation or endorsement
shall not affect the obligations of the Borrower under this Agreement or the
Notes.  Each Lender is hereby irrevocably
authorized by the Borrower so to endorse its Note and to attach to and make a
part of its Note a continuation of any such schedule as and when required.

 

SECTION 2.06.  Maturity of Loans.  (a)  Each Syndicated Loan shall mature, and the principal amount
thereof shall be due and payable, on the Termination Date.

 

25

 

(b)                                 Each
Money Market Loan shall mature, and the principal amount thereof shall be due
and payable, on the last day of the Interest Period applicable thereto.

 

SECTION 2.07.  Optional Prepayments of
Syndicated Loans.  The
Borrower may at its option, by Notice of Syndicated Prepayment given in
accordance with Section 2.08,
prepay any Group of Loans (subject, in the case of a Group of Euro-Dollar
Loans, to Section 2.14), in
each case in whole at any time, or from time to time in part in amounts
aggregating at least $10,000,000, by paying the principal amount to be prepaid
together with interest accrued thereon to the date of prepayment.  Each such optional prepayment shall be
applied to prepay ratably the Loans of the several Lenders included in such
Group of Loans.

 

SECTION 2.08.  Notice of Syndicated
Prepayment.  (a)  The Borrower shall give the Administrative
Agent notice (a “Notice of Syndicated
Prepayment”) not later than (x) 1:00 P.M. (New York City time)
on the Business Day before each prepayment of Base Rate Loans and (y) 1:00
P.M. (New York City time) on the third Euro-Dollar Business Day before each
prepayment of Euro-Dollar Loans, specifying:

 

(i)                                     the date of such
prepayment, which shall be a Domestic Business Day in the case of a prepayment
of Base Rate Loans or a Euro-Dollar Business Day in the case of a prepayment of
Euro-Dollar Loans,

 

(ii)                                  the aggregate amount
of such prepayment, and

 

(iii)                               the Group or Groups of
Loans to which such prepayment is to be applied.

 

If the Borrower fails to
specify the Group or Groups of Loans to which any such prepayment is to be
applied, such Group or Groups of Loans shall be selected by the Administrative
Agent.  Each repayment or prepayment of
Syndicated Loans shall be applied ratably to the Loans included in the Group or
Groups of Loans selected by the Borrower or the Administrative Agent, as the
case may be.

 

(b)                                 Upon
receipt of a Notice of Syndicated Prepayment, the Administrative Agent shall
promptly notify each relevant Lender of the contents thereof and of such
Lender’s ratable share of such prepayment and such Notice of Syndicated
Prepayment shall not thereafter be revocable by the Borrower.

 

SECTION 2.09.  Interest Rates.  (a)  Each Base Rate Loan shall bear interest on the outstanding
principal amount thereof, for each day from and including the

 

26

 

date such Loan is made to but
excluding the date it becomes due, at a rate per annum equal to the Base Rate
for such day.  Such interest shall be
payable in arrears on the last Domestic Business Day of each Fiscal Quarter
and, with respect to the principal amount of any Base Rate Loan converted to a
Euro-Dollar Loan, on the date such amount is so converted.  Any overdue principal of or interest on any
Base Rate Loan shall bear interest, payable on demand, for each day until paid
at a rate per annum equal to the sum of 2% plus the Base Rate for such day.

 

(b)                                 Each
Euro-Dollar Loan shall bear interest on the outstanding principal amount
thereof, for each day during each Interest Period applicable thereto, at a rate
per annum equal to the sum of the Euro-Dollar Margin for such day plus the
Adjusted London Interbank Offered Rate applicable to such Interest Period.  Such interest shall be payable for each
Interest Period on the last day thereof and, if such Interest Period is longer
than three months, three months after the first day thereof.

 

The “Adjusted London Interbank
Offered Rate” applicable to any Interest Period means a rate per
annum equal to the quotient obtained (rounded upward, if necessary, to the next
higher 1/100 of 1%) by dividing (i) the applicable London Interbank
Offered Rate by (ii) 1.00 minus the Euro-Dollar Reserve Percentage.

 

The “London Interbank Offered Rate”
applicable to any Interest Period means the average (rounded upward, if
necessary, to the next higher 1/16 of 1%) of the respective rates per annum at
which deposits in dollars are offered to each of the Euro-Dollar Reference
Banks in the London interbank market at approximately 11:00 A.M. (London time)
two Euro-Dollar Business Days before the first day of such Interest Period in
an amount approximately equal to the principal amount of the Euro-Dollar Loan
of such Euro-Dollar Reference Bank to which such Interest Period is to apply
and for a period of time comparable to such Interest Period.

 

“Euro-Dollar Reserve Percentage”
means for any day that percentage (expressed as a decimal) which is in effect
on such day, as prescribed by the Board of Governors of the Federal Reserve
System (or any successor) for determining the maximum reserve requirement for a
member bank of the Federal Reserve System in New York City with deposits exceeding
five billion dollars in respect of “Eurocurrency
liabilities” (or in respect of any other category of liabilities
which includes deposits by reference to which the interest rate on Euro-Dollar
Loans is determined or any category of extensions of credit or other assets
which includes loans by a non-United States office of any Lender to United
States residents).

 

27

 

(c)                                  Any
overdue principal of or interest on any Euro-Dollar Loan shall bear interest,
payable on demand, for each day until paid, at a rate per annum equal to the
higher of (i) the sum of 2% plus the Euro-Dollar Margin for such day plus
the quotient obtained (rounded upward, if necessary, to the next higher 1/100
of 1%) by dividing (x) the average (rounded upward, if necessary, to the
next higher 1/16 of 1%) of the respective rates per annum at which one day (or,
if such amount due remains unpaid more than three Euro-Dollar Business Days,
then for such other period of time not longer than six months as the
Administrative Agent may select) deposits in dollars in an amount approximately
equal to such overdue payment due to each of the Euro-Dollar Reference Banks
are offered to such Euro-Dollar Reference Bank in the London interbank market
for the applicable period determined as provided above by (y) 1.00 minus
the Euro-Dollar Reserve Percentage (or, if the circumstances described in
clause  (a) or (b) of Section 8.01 shall exist, at a rate per
annum equal to the sum of 2% plus the Base Rate for such day) and (ii) the
sum of 2% plus the Euro-Dollar Margin for such day plus the Adjusted London
Interbank Offered Rate applicable to such Loan at the date such payment was
due.

 

(d)                                 Each
Euro-Dollar Reference Bank agrees to use its best efforts to furnish quotations
to the Administrative Agent as contemplated hereby.  If any Euro-Dollar Reference Bank does not furnish a timely
quotation, the Administrative Agent shall determine the relevant interest rate
on the basis of the quotation or quotations furnished by the remaining
Euro-Dollar Reference Bank or Banks or, if none of such quotations is available
on a timely basis, the provisions of Section 8.01 shall apply.

 

(e)                                  Subject
to Section 8.01(a), each
Money Market LIBOR Loan shall bear interest on the outstanding principal amount
thereof, for the Interest Period applicable thereto, at a rate per annum equal
to the sum of the London Interbank Offered Rate for such Interest Period
(determined in accordance with Section 2.09(b)
as if the related Money Market LIBOR Borrowing were a Syndicated Euro-Dollar
Borrowing) plus (or minus) the Money Market Margin quoted by the Lender making
such Loan in accordance with Section 2.03.  Each Money Market Absolute Rate Loan shall
bear interest on the outstanding principal amount thereof, for the Interest
Period applicable thereto, at a rate per annum equal to the Money Market
Absolute Rate quoted by the Lender making such Loan in accordance with
Section 2.03.  Such interest shall be payable for each
Interest Period on the last day thereof and, if such Interest Period is longer
than three months, at intervals of three months after the first day
thereof.  Any overdue principal of or
interest on any Money Market Loan shall bear interest, payable on demand, for
each day until paid at a rate per annum equal to the sum of 2% plus the Base
Rate for such day.

 

28

 

SECTION 2.10.  Method of Electing Interest
Rates.  (a) The Loans
included in each Syndicated Borrowing shall bear interest initially at the type
of rate specified by the Borrower in the applicable Notice of Syndicated
Borrowing.  Thereafter, the Borrower may
from time to time elect to change or continue the type of interest rate borne
by each Group of Loans (subject in each case to the provisions of Article 
8), as follows:

 

(i)                                     if such Loans are
Base Rate Loans, the Borrower may elect to convert such Loans to Euro-Dollar
Loans as of any Euro-Dollar Business Day; and

 

(ii)                                  if such Loans are
Euro-Dollar Loans, the Borrower may elect to convert such Loans to Base Rate
Loans or elect to continue such Loans as Euro-Dollar Loans for an additional
Interest Period, in each case effective on the last day of the then current
Interest Period applicable to such Loans.

 

Each such election shall be
made by delivering a notice (a “Notice of
Interest Rate Election”) to the Administrative Agent at least three
Euro-Dollar Business Days before the conversion or continuation selected in
such notice is to be effective.  A
Notice of Interest Rate Election may, if it so specifies, apply to only a
portion of the aggregate principal amount of the relevant Group of Loans; provided that (i) such portion is
allocated ratably among the Loans comprising such Group and (ii) the
portion to which such Notice applies, and the remaining portion to which it
does not apply, are each $10,000,000 or any larger multiple of $1,000,000.

 

(b)                                 Each
Notice of Interest Rate Election shall specify:

 

(i)                                     the Group of Loans
(or portion thereof) to which such notice applies;

 

(ii)                                  the date on which the
conversion or continuation selected in such notice is to be effective, which
shall comply with the applicable clause of subsection (a) above;

 

(iii)                               if the Loans comprising
such Group are to be converted to Euro-Dollar Loans, the duration of the
initial Interest Period applicable thereto; and

 

(iv)                              if such Loans are to be
continued as Euro-Dollar Loans for an additional Interest Period, the duration
of such additional Interest Period.

 

29

 

Each Interest Period specified
in a Notice of Interest Rate Election shall comply with the provisions of the
definition of Interest Period.

 

(c)                                  Upon
receipt of a Notice of Interest Rate Election from the Borrower pursuant to
subsection (a) above, the Administrative Agent shall promptly notify
each Lender of the contents thereof and such notice shall not thereafter be
revocable by the Borrower.  If the
Borrower fails to deliver a timely Notice of Interest Rate Election to the
Administrative Agent for any Group of Euro-Dollar Loans, such Loans shall be
converted to Base Rate Loans on the last day of the then current Interest
Period applicable thereto.

 

SECTION 2.11.  Fees.  The Borrower shall pay to the
Administrative Agent, for the account of the Lenders ratably in proportion to
their Credit Exposures, a facility fee calculated for each day at the Facility
Fee Rate on the aggregate amount of the Credit Exposures on such day.  Such facility fee shall accrue from and including
the Closing Date to but excluding the date on which the Credit Exposures are
reduced to zero and shall be payable quarterly on each March 31,
June 30, September 30 and December 31 and on the date on which
the Credit Exposures are reduced to zero.

 

SECTION 2.12.  Termination or Reduction of
Commitments.  The Borrower
may, upon at least three Domestic Business Days’ notice to the Administrative
Agent, (i) terminate the Commitments at any time, if there are no Syndicated
Loans, Swingline Loans or LC Exposures outstanding at such time, or (ii)
ratably reduce from time to time by an aggregate amount of $10,000,000 or any
multiple of $1,000,000 in excess thereof, the aggregate amount of the
Commitments in excess of the sum of the aggregate outstanding principal amount
of all Syndicated Loans and Swingline Loans and the Aggregate LC Exposure at
such time.  Unless previously
terminated, the Commitments shall terminate at the close of business on the
Termination Date.

 

SECTION 2.13.  General Provisions as to
Payments.  (a) The Borrower
shall make each payment of principal of, and interest on, the Loans and LC
Reimbursement Obligations, and of fees hereunder (other than fees payable
directly to the LC Issuing Banks), not later than 12:00 Noon (New York City
time) on the date when due, in Federal or other funds immediately available in
New York City, to the Administrative Agent at its address referred to in
Section 9.01 and without
reduction by reason of set-off or counterclaim.  The Administrative Agent will promptly distribute to each Lender
its ratable share (if any) of each such payment received by the Administrative
Agent for the account of the Lenders. 
Whenever any payment of principal of, or interest on, Base Rate Loans,
Swingline Loans or LC Reimbursement Obligations or any payment of fees shall be
due on a day which is not a Domestic Business Day, the date for

 

30

 

payment thereof shall be
extended to the next succeeding Domestic Business Day.  Whenever any payment of principal of, or
interest on, Euro-Dollar Loans shall be due on a day which is not a Euro-Dollar
Business Day, the date for payment thereof shall be extended to the next
succeeding Euro-Dollar Business Day unless such Euro-Dollar Business Day falls
in another calendar month, in which case the date for payment thereof shall be
the next preceding Euro-Dollar Business Day. 
Whenever any payment of principal of, or interest on, Money Market Loans
shall be due on a day which is not a Euro-Dollar Business Day, the date for
payment thereof shall be extended to the next succeeding Euro-Dollar Business
Day.  If the date for any payment of
principal is extended by operation of law or otherwise, interest thereon shall
be payable for such extended time.

 

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

 

SECTION 2.14.  Funding Losses.  If the Borrower makes any payment
of principal with respect to any Euro-Dollar Loan or any Euro-Dollar Loan is
converted to a Base Rate Loan (pursuant to Article 2, 6 or 8
or otherwise) on any day other than the last day of an Interest Period
applicable thereto, or the last day of an applicable period fixed pursuant to
Section 2.09(c), or the
Borrower fails to borrow or prepay or convert any Euro-Dollar Loans after
notice has been given to any Lender in accordance with Section 2.04(a) or 2.10(c), the Borrower shall reimburse each Lender within 15
days after demand for any resulting loss or expense incurred by it (or by an
existing or prospective Participant in the related Loan), including (without
limitation) any loss incurred in obtaining, liquidating or employing deposits
from third parties, but excluding loss of margin for the period after any such
payment or conversion or failure to borrow or prepay or convert, provided that such Lender shall have
delivered to the Borrower a certificate setting forth in reasonable detail the
amount of such loss or expense and the method of calculation thereof, which
certificate shall be conclusive in the absence of manifest error.

 

31

 

SECTION 2.15.  Computation of Interest and
Fees.  (a) Interest based on
the Prime Rate hereunder shall be computed on the basis of a year of 365 days
(or 366 days in a leap year) and paid for the actual number of days elapsed
(including the first day but excluding the last day).  All other interest and fees shall be computed on the basis of a
year of 360 days and paid for the actual number of days elapsed (including the
first day but excluding the last day).

 

(b)                                 The
Administrative Agent shall determine each interest rate applicable to the Loans
hereunder and each Facility Fee Rate and LC Fee Rate applicable hereunder.  The Administrative Agent shall give prompt
notice to the Borrower and the relevant Lenders of each interest rate, Facility
Fee Rate and LC Fee Rate so determined, and its determination thereof shall be
conclusive in the absence of manifest error.

 

SECTION 2.16.  Swingline Loans.  (a) Swingline Commitment. 
The Swingline Bank agrees, on the terms and conditions set forth in this
Agreement, to make loans to the Borrower pursuant to this Section from
time to time during the Swingline Availability Period; provided that, immediately after each such
loan is made, the aggregate outstanding principal amount of such loans shall
not exceed the Swingline Commitment. 
Each loan under this Section shall be in a principal amount of at
least $1,000,000 and shall bear interest for each day at the Base Rate for such
day.  Within the foregoing limits, the
Borrower may borrow under this Section, repay Swingline Loans and reborrow at
any time during the Swingline Availability Period under this Section.

 

(b)                                 Notice of Swingline Borrowing.  The Borrower shall give the Swingline Bank
notice (a “Notice of Swingline Borrowing”)
not later than 2:00 P.M. (New York City time) on the date of each Swingline
Borrowing, specifying (i) the date of such Borrowing, which shall be a
Domestic Business Day, and (ii) the amount of such Borrowing.

 

(c)                                  Funding of Swingline Loans.  Not later than 3:00 P.M. (New York City
time) on the date of each Swingline Borrowing, the Swingline Bank shall, unless
the Swingline Bank determines that any applicable condition specified in
Article 3 has not been satisfied, make available the amount of such
Swingline Borrowing, in Federal or other funds immediately available in New
York City, to the Borrower at the Swingline Bank’s address referred to in
Section 9.01.

 

(d)                                 Swingline Note.  The Borrower’s obligation to repay the Swingline Loans shall be
evidenced by a single Note substantially in form of Exhibit E hereto (the “Swingline Note”).

 

32

 

(e)                                  Optional Prepayment of Swingline Loans.  The Borrower may prepay the Swingline Loans in
whole at any time, or from time to time in part in a principal amount of at
least $1,000,000, by giving notice of such prepayment to the Swingline Bank not
later than 12:00 Noon (New York City time) on the date of prepayment and paying
the principal amount to be prepaid, together with interest accrued thereon to
the date of prepayment, to the Swingline Bank at its address referred to in
Section 9.01, in Federal or
other funds immediately available in New York City, not later than 3:00 P.M.
(New York City time) on the date of prepayment.

 

(f)                                    Mandatory Prepayment of Swingline Loans.  On the date of each Borrowing pursuant to
Section 2.01 or 2.03, the Borrower shall prepay all
Swingline Loans then outstanding, together with interest accrued thereon to the
date of prepayment.

 

(g)                                 Maturity of Swingline Loans.  All Swingline Loans outstanding on the
Swingline Maturity Date shall be due and payable on such date, together with
interest accrued thereon to such date.

 

(h)                                 Refunding Unpaid Swingline Loans.  If (i) the Swingline Loans are not paid
in full on the Swingline Maturity Date or (ii) the Swingline Loans become
immediately due and payable pursuant to Section 6.01, the Swingline Bank (or the Administrative Agent on its
behalf) may, by notice to the Lenders (including the Swingline Bank, in its
capacity as a Lender), require each Lender to pay to the Swingline Bank an
amount equal to such Lender’s Commitment Percentage of the aggregate unpaid
principal amount of the Swingline Loans then outstanding.  Such notice shall specify the date on which
such payments are to be made, which shall be the first Domestic Business Day
after such notice is given.  Not later
than 12:00 Noon (New York City time) on the date so specified, each Lender
shall pay the amount so notified to it to the Swingline Bank at its address
referred to in Section 9.01,
in Federal or other funds immediately available in New York City.  The amount so paid by each Lender shall
constitute a Base Rate Loan to the Borrower; provided
that, if the Lenders are prevented from making such Base Rate Loans to the
Borrower by the provisions of the United States Bankruptcy Code or otherwise,
the amount so paid by each Lender shall constitute a purchase by it of a
participation in the unpaid principal amount of the Swingline Loans (and
interest accruing thereon after the date of such payment).  Each Lender’s obligation to make such
payment to the Swingline Bank under this subsection (h) shall be
absolute and unconditional and shall not be affected by any circumstance,
including, without limitation, (i) any set-off, counterclaim, recoupment,
defense or other right which such Lender or any other Person may have against
the Swingline Bank or the Borrower, (ii) the occurrence or continuance of
a Default or an Event of Default or the termination of the

 

33

 

Commitments, (iii) any
adverse change in the condition (financial or otherwise) of the Borrower or any
other Person, (iv) any breach of this Agreement by the Borrower or any
other party hereto or (v) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing; provided that no Lender shall be obligated
to make any payment to the Swingline Bank under this
subsection (h) with respect to a Swingline Loan made by the Swingline
Bank at a time when it knew that a Default had occurred and was continuing.

 

(i)                                     Termination of Swingline Commitment.  The Borrower may, upon at least three
Domestic Business Days’ notice to the Administrative Agent, terminate the
Swingline Commitment at any time, if no Swingline Loans are outstanding at such
time.  Unless previously terminated, the
Swingline Commitment shall terminate at the close of business on the Swingline
Maturity Date.

 

SECTION 2.17.  Letters of Credit.  (a) LC Issuing Banks. 
The Borrower may, at any time, request any Lender to issue one or more
letters of credit hereunder.  Any Lender
may, but shall not be obligated to, agree to issue such letters of credit.  If any Lender so agrees, it shall send
notice to the Administrative Agent confirming its agreement, whereupon such
Lender shall become an “LC Issuing Bank”
for the purposes hereof.

 

(b)                                 Issuance. 
Each LC Issuing Bank agrees, on the terms and conditions set forth in
this Agreement, to issue at the request of the Borrower the Letters of Credit
that such LC Issuing Bank has agreed with the Borrower to issue; provided that (i) no Letter of Credit
shall be issued after the date that is thirty days before the Termination Date
and (ii) immediately after each such Letter of Credit is issued and
participations therein are sold to the Lenders as provided in this subsection,
no Lender’s Outstanding Committed Amount shall exceed its Commitment.  Whenever an LC Issuing Bank issues a Letter
of Credit hereunder, such LC Issuing Bank shall be deemed, without further
action by any party hereto, to have sold to each Lender (including such LC
Issuing Bank in its capacity as a Lender), and each Lender shall be deemed,
without further action by any party hereto, to have purchased from such LC
Issuing Bank, a participation in such Letter of Credit, on the terms specified
in this Section, equal to such Lender’s Commitment Percentage thereof.

 

(c)                                  Notice of Proposed Issuance.  With respect to each Letter of Credit, the
Borrower shall give the relevant LC Issuing Bank and the Administrative Agent
at least three Domestic Business Days’ prior notice (i) specifying the
date such Letter of Credit is to be issued and (ii) describing the
proposed terms of such Letter of Credit and the nature of the transactions to
be supported thereby.  Promptly after it
receives such notice, the Administrative Agent shall notify each Lender of the
contents thereof.

 

34

 

(d)                                 Conditions to Issuance.  No LC Issuing Bank shall issue any Letter of
Credit unless:

 

(i)                                     such Letter of
Credit shall be satisfactory in form and substance to such LC Issuing Bank,

 

(ii)                                  the Borrower shall
have executed and delivered such other instruments and agreements relating to
such Letter of Credit as such LC Issuing Bank shall have reasonably requested,

 

(iii)                               such LC Issuing Bank
shall have confirmed with the Administrative Agent on the date of such issuance
that the limitation specified in subsection (b)(ii) of this
Section will not be exceeded immediately after such Letter of Credit is
issued and

 

(iv)                              such LC Issuing Bank
shall not have been notified in writing by the Borrower, the Administrative
Agent or the Required Lenders that any condition specified in clause  (c),
(d) or (e) of Section 3.03 is not satisfied at the time such Letter
of Credit is to be issued.

 

(e)                                  Notice of Actual Issuance.  Promptly after it issues any Letter of
Credit, the relevant LC Issuing Bank shall notify the Administrative Agent of
the date, face amount, beneficiary or beneficiaries and expiry date of such
Letter of Credit.  Promptly after it
receives such notice, the Administrative Agent shall notify each Lender of the
contents thereof and the amount of such Lender’s participation in such Letter
of Credit.  Promptly after it issues any
Letter of Credit, the relevant LC Issuing Bank shall send a copy of such Letter
of Credit to the Administrative Agent.

 

(f)                                    Expiry Dates.  No Letter of Credit shall have an expiry date later than the fifth
Domestic Business Day before the Termination Date.  Subject to the preceding sentence, each Letter of Credit, when
issued hereunder, shall expire on or before the first anniversary of the date
of such issuance; provided that
the expiry date of any Letter of Credit may be extended from time to time
(i) at the Borrower’s request or (ii) in the case of an Evergreen
Letter of Credit, automatically, in each case so long as such extension is for
a period not exceeding one year and is granted (or the last day on which notice
can be given to prevent such extension occurs) no earlier than three months
before the then existing expiry date thereof.

 

(g)                                 Notice of Proposed Extensions of Expiry Dates.  The relevant LC Issuing Bank shall give the
Administrative Agent at least three Domestic Business

 

35

 

Days’ notice before such LC
Issuing Bank extends (or allows an automatic extension of) the expiry date of
any Letter of Credit issued by it.  Such
notice shall identify such Letter of Credit, the date on which it is to be
extended (or the last day on which notice can be given to prevent such
extension) and the date to which it is to be extended.  Promptly after it receives such notice, the
Administrative Agent shall notify each Lender of the contents thereof.  No LC Issuing Bank shall extend (or allow
the extension of) the expiry date of any Letter of Credit if:

 

(i)                                     such extension
does not comply with subsection  (f) of this Section or

 

(ii)                                  such LC Issuing Bank
shall have been notified by the Administrative Agent or the Required Lenders
that any condition specified in clause  (c), (d) or (e) of
Section 3.03 is not
satisfied at the time of such proposed extension.

 

If any Letter of Credit is not
extended after notice of a proposed extension thereof has been given to the
Lenders, the relevant LC Issuing Bank shall promptly notify the Administrative
Agent of such failure to extend. 
Promptly after it receives such notice, the Administrative Agent shall
notify each Lender thereof.

 

(h)                                 Fees. 
The Borrower shall pay to the Administrative Agent, for the account of
the Lenders ratably in proportion to their Commitment Percentages, a letter of
credit fee for each day at the LC Fee Rate for such day on the aggregate amount
available for drawing (whether or not conditions for drawing have been
satisfied) under all Letters of Credit outstanding at the close of business on
such day.  Such letter of credit fee
shall be payable with respect to each Letter of Credit in arrears on the last
Domestic Business Day of each calendar quarter and on the Termination
Date.  The Borrower shall pay to each LC
Issuing Bank fronting fees and other charges in the amounts and at the times
agreed between the Borrower and such LC Issuing Bank.  The LC Issuing Banks shall furnish to the Administrative Agent
upon request such information as the Administrative Agent shall require in
order to calculate the amount of any fee payable for the account of Lenders
under this subsection (h).

 

(i)                                     Drawings. 
If an LC Issuing Bank receives a demand for payment under any Letter of
Credit issued by it and determines that such demand should be honored, such LC
Issuing Bank shall (i) promptly notify the Borrower and the Administrative
Agent as to the amount to be paid by such LC Issuing Bank as a result of such
demand and the date of such payment (an “LC
Payment Date”) and (ii) make such payment in accordance with
the terms of such Letter of Credit.

 

36

 

(j)                                     Reimbursement by the Borrower.  (A) If any amount is drawn under
any Letter of Credit, the Borrower irrevocably and unconditionally agrees to
reimburse the relevant LC Issuing Bank for such amount, together with any and
all reasonable charges and expenses which such LC Issuing Bank may pay or incur
relative to such drawing.  Such
reimbursement shall be due and payable on the relevant LC Payment Date or the
date on which such LC Issuing Bank notifies the Borrower of such drawing,
whichever is later; provided
that, if such notice is given after 10:00 A.M. (New York City time) on the
later of such dates, such reimbursement shall be due and payable on the next
following Domestic Business Day (the date on which it is due and payable being
an “LC Reimbursement Due Date”).

 

(B)                                In addition, the
Borrower agrees to pay, on the applicable LC Reimbursement Due Date, interest
on each amount drawn under a Letter of Credit, for each day from and including
the date such amount is drawn to but excluding such LC Reimbursement Due Date,
at the Base Rate for such day.  The
Borrower also agrees to pay, on demand, interest on any overdue amount
(including any overdue interest) payable under this subsection (j), for
each day from and including the date when such amount becomes due to but
excluding the date such amount is paid in full, at a rate per annum equal to
the sum of 2% plus the Base Rate for such day.

 

(C)                                Each payment by the
Borrower pursuant to this subsection (j) shall be made to the relevant LC
Issuing Bank in Federal or other funds immediately available to it at its
address referred to in Section 9.01.

 

(k)                                  Payments by Lenders. 
(A) If the Borrower fails to pay any LC Reimbursement
Obligation in full when due, the relevant LC Issuing Bank may notify the
Administrative Agent of the unreimbursed amount and request that the Lenders
reimburse such LC Issuing Bank for their respective Commitment Percentages
thereof.  Promptly after it receives any
such notice, the Administrative Agent shall notify each Lender of the
unreimbursed amount and such Lender’s Commitment Percentage thereof.  Upon receiving such notice from the
Administrative Agent, each Lender shall make available to such LC Issuing Bank,
at its address referred to in Section 9.01,
an amount equal to such Lender’s Commitment Percentage of such unreimbursed
amount, in Federal or other funds immediately available to such LC Issuing
Bank, by 3:00 P.M. (New York City time) (i) on the date such Lender
receives such notice if it is received at or before 12:00 Noon (New York City
time) on such day or (ii) on the next Domestic Business Day if such notice
is received after 12:00 Noon (New York City time) on 

 

37

 

the date of receipt, in each
case together with interest on such amount for each day from and including the
relevant LC Payment Date to but excluding the day such payment is due from such
Lender at the Federal Funds Rate for such day. 
Upon payment in full thereof, such Lender shall be subrogated to the rights
of such LC Issuing Bank against the Borrower to the extent of such Lender’s
Commitment Percentage of the related LC Reimbursement Obligation (including
interest accrued thereon).

 

(B)                                If any Lender fails to
pay when due any amount to be paid by it pursuant to clause  (A) of
this subsection, interest shall accrue on such Lender’s obligation to make such
payment, for each day from and including the date such payment became due to
but excluding the date such Lender makes such payment, at a rate per annum
equal to (x) for each day from the day such payment is due to the third
succeeding Domestic Business Day, inclusive, the Federal Funds Rate for such
day and (y) for each day thereafter the sum of 2% plus the Base Rate for
such day.

 

(C)                                If the Borrower shall
reimburse any LC Issuing Bank for any drawing with respect to which any Lender
shall have made funds available to such LC Issuing Bank in accordance with
clause (A) of this subsection, such LC Issuing Bank shall promptly
upon receipt of such reimbursement distribute to such Lender its Commitment
Percentage thereof, including interest, to the extent received by such LC
Issuing Bank.

 

(l)                                     Exculpatory Provisions.  The Borrower’s obligations under this
Section shall be absolute and unconditional under any and all
circumstances and irrespective of any setoff, counterclaim or defense to
payment which the Borrower may have or have had against any LC Issuing Bank,
any Lender, any beneficiary of any Letter of Credit or any other Person.  The Borrower assumes all risks of the acts
or omissions of any beneficiary of any Letter of Credit with respect to the use
of such Letter of Credit by such beneficiary. 
None of the LC Issuing Banks (in the absence of its own gross negligence
or willful misconduct), the Lenders and their respective officers, directors, employees
and agents shall be responsible for, and the obligations of each Lender to make
payments to each LC Issuing Bank and of the Borrower to reimburse each LC
Issuing Bank for drawings pursuant to this Section  (other than
obligations resulting solely from the gross negligence or willful misconduct of
the relevant LC Issuing Bank) shall not be excused or affected by, among other
things, (i) the use which may be made of any Letter of Credit or any acts
or omissions of any beneficiary or transferee in connection therewith;
(ii) the validity, sufficiency or genuineness of documents presented under
any Letter of Credit or of any endorsements thereon, even if such

 

38

 

documents should in fact prove
to be in any or all respects invalid, insufficient, fraudulent or forged;
(iii) payment by any LC Issuing Bank against presentation of documents to
it which do not comply with the terms of the relevant Letter of Credit or
(iv) any dispute between or among the Borrower, any beneficiary of any
Letter of Credit or any other Person or any claims or defenses whatsoever of
the Borrower or any other Person against any beneficiary of any Letter of
Credit.  No LC Issuing Bank shall be liable
for any error, omission, interruption or delay in transmission, dispatch or
delivery of any message or advice, however transmitted, in connection with any
Letter of Credit.  Any action taken or
omitted by any LC Issuing Bank or any Lender in connection with any Letter of
Credit and the related drafts and documents, if done without willful misconduct
or gross negligence, shall be binding upon the Borrower and shall not place any
LC Issuing Bank or any Bank under any liability to the Borrower.

 

(m)                               Indemnification by Borrower.  The Borrower agrees to indemnify
and hold harmless each Lender, each LC Issuing Bank and the Administrative
Agent (collectively, the “LC Indemnitees”)
from and against any and all claims, damages, losses, liabilities, reasonable
costs and reasonable expenses (including, without limitation, the reasonable
fees and disbursements of counsel) which such LC Indemnitee may incur (or which
may be claimed against such LC Indemnitee by any Person whatsoever) by reason
of or in connection with any execution and delivery or transfer of or payment
or failure to pay under any Letter of Credit or any actual or proposed use of
any Letter of Credit; provided
that the Borrower shall not be required to indemnify any LC Issuing Bank for
any such claims, damages, losses, liabilities, costs or expenses to the extent,
but only to the extent, caused by (i) its own willful misconduct or gross
negligence or (ii) its failure to pay under any Letter of Credit issued by
it after the presentation to it of a request strictly complying with the terms
and conditions of such Letter of Credit. 
Nothing in this subsection is intended to limit the obligations of
the Borrower under any other provision of this Section.

 

(n)                                 Indemnification by Lenders.  The Lenders shall, ratably in proportion to their
Commitment Percentages, indemnify each LC Issuing Bank (to the extent not
reimbursed by the Borrower) against any claims, damages, losses, liabilities,
reasonable costs and reasonable expenses (including, without limitation,
reasonable fees and disbursements of counsel) that any such indemnitee may
suffer or incur in connection with this Section or any action taken or
omitted by such indemnitee under this Section; provided
that the Lenders shall not be required to indemnify any LC Issuing Bank for any
such claims, damages, losses, liabilities, costs or expenses to the extent, but
only to the extent, caused by (i) its own gross negligence or willful
misconduct, (ii) its failure to pay under any Letter of Credit issued by
it after the presentation to it of a request strictly complying with the terms
and condition of such Letter of Credit, (iii) its liabilities under any

 

39

 

Letter of Credit issued by it
in contravention of clause  (iii) (to the extent that the limitations
referred to therein were in fact exceeded) or clause  (iv) of
subsection (d) of this Section or (iv) its liabilities
under any Letter of Credit extended (or allowed to be automatically extended)
by it in contravention of clause  (i) or (ii) of subsection (g) of
this Section.

 

(o)                                 Liability for Damages.  Nothing in this Section shall preclude
the Borrower or any Lender from asserting against any LC Issuing Bank any claim
for direct (but not consequential) damages suffered by the Borrower or such
Lender to the extent, but only to the extent, caused by (A) the willful
misconduct or gross negligence of such LC Issuing Bank in determining whether a
request presented under any Letter of Credit issued by it complied with the
terms thereof or (B) such LC Issuing Bank’s failure to pay under any such
Letter of Credit after the presentation to it of a request strictly complying
with the terms and conditions thereof.

 

(p)                                 Dual Capacities.  In its capacity as a Lender, each LC Issuing Bank shall have the
same rights and obligations under this Section as any other Lender.

 

ARTICLE 3

 

CONDITIONS

 

SECTION 3.01.  Closing.  This Agreement shall become
effective when all the following conditions have been satisfied (or waived in
accordance with Section 9.05):

 

(a)                                  the
Administrative Agent shall have received (i) counterparts hereof signed by
the Borrower, the Lenders listed on the Commitment Schedule, the Swingline Bank
and the Agents or (ii) in the case of any such party as to which an
executed counterpart shall not have been received, telex, facsimile or other
written confirmation (in form satisfactory to the Administrative Agent) that a
counterpart hereof has been executed by such party;

 

(b)                                 the
Administrative Agent shall have received (i) a duly executed Note, dated
on or before the Closing Date and complying with the provisions of
Section 2.05, for each
Lender and (ii) a duly executed Swingline Note, dated on or before the
Closing Date, for the Swingline Bank;

 

(c)                                  the
Administrative Agent shall have received evidence satisfactory to it that the
Borrower will comply with the provisions of Section 3.02 on the Closing Date and that it has
received all consents (if any) required to enable it to

 

40

 

do so from the lenders under
the Borrower’s Existing Credit Agreement that are not parties to this
Agreement;

 

(d)                                 the
Administrative Agent shall have received a certificate, substantially in the
form of Exhibit F hereto, dated the Closing Date and signed by a Senior Officer
of the Borrower;

 

(e)                                  the
Administrative Agent shall have received an opinion of Gibson, Dunn &
Crutcher LLP, special counsel for the Borrower, substantially in the form of
Exhibit G hereto, dated the Closing Date and covering such other matters
incident to the transactions contemplated by this Agreement as any Agent shall
reasonably request;

 

(f)                                    the
Administrative Agent shall have received an opinion of the Borrower’s General
Counsel, dated the Closing Date, substantially in the form of Exhibit H hereto
and covering such other matters incident to the transactions contemplated by
this Agreement as any Agent shall reasonably request;

 

(g)                                 the
Administrative Agent shall have received an opinion of Davis Polk &
Wardwell, special counsel for the Administrative Agent, dated the Closing Date,
substantially in the form of Exhibit I hereto and covering such other matters
incident to the transactions contemplated by this Agreement as any Agent shall
reasonably request;

 

(h)                                 the
Administrative Agent shall have received a certificate of the Secretary of the
Borrower, dated the Closing Date, as to the restated articles of incorporation
and restated bylaws of the Borrower, the absence of amendments thereto, the
adoption by the Borrower’s board of directors of the resolutions referred to in
clause  (i) below and the incumbency of each officer of the Borrower who
executed or will execute any Financing Document or any other document to be
delivered pursuant to this Agreement on the Closing Date;

 

(i)                                     the
Administrative Agent shall have received a copy of resolutions (in form and
substance satisfactory to the Agents) of the Borrower’s board of directors
authorizing the execution, delivery and performance of the Financing Documents,
certified by the Secretary of the Borrower to be in full force and effect
without modification on the Closing Date;

 

(j)                                     the
Borrower shall have paid or made arrangements satisfactory to the
Administrative Agent for paying all expenses payable by the Borrower on or
before the Closing Date pursuant to Section 9.03(a);

 

41

 

(k)                                  the
Borrower shall have paid to the Administrative Agent for the account of each
Lender a fee in the amount heretofore mutually agreed upon by the Lenders and
the Administrative Agent; and

 

(l)                                     the
Administrative Agent shall have received all documents it may reasonably
request relating to the existence of the Borrower, the corporate authority for
and the validity of the Financing Documents and any other matters relevant
thereto, all in form and substance reasonably satisfactory to the
Administrative Agent.

 

When this Agreement becomes
effective, the Administrative Agent shall promptly notify the Borrower and the
Lenders that it is effective, and such notice shall be conclusive and binding
on all parties hereto.

 

SECTION 3.02.  Termination of Existing
Commitments.  The Borrower
agrees that on the Closing Date it will (i) prepay all loans outstanding under
the Borrower’s Existing Credit Agreement, (ii) terminate the commitments of the
lenders thereunder immediately after such prepayment and (iii) pay all interest
and facility fees accrued thereunder to but excluding the Closing Date.  The Lenders that are parties to the
Borrower’s Existing Credit Agreement waive the provisions thereof to the extent
(and only to the extent) that such provisions would otherwise require the
Borrower to give prior notice of such prepayment and termination of commitments
thereunder or would preclude termination of commitments thereunder on account
of the existence of outstanding letters of credit which will become Letters of
Credit hereunder on the Closing Date pursuant to Section 3.04.  Notwithstanding such termination, the
Borrower shall remain obligated on and after the Closing Date to compensate the
lenders under Section 2.14 of the Borrower’s Existing Credit Agreement for
any funding losses incurred by reason of such prepayment and under
Sections 8.03, 8.04 and 9.03 thereof for any amounts payable to them
thereunder.

 

SECTION 3.03.  Borrowings and Issuances or
Extensions of Letters of Credit.  The
obligation of any Lender to make a Loan on the occasion of any Borrowing
(except a Syndicated Borrowing pursuant to Section 2.16(h)), the obligation of the Swingline
Bank to make any Swingline Loan and the obligation of any LC Issuing Bank to
issue (or extend or allow the extension of the expiry date of) any Letter of
Credit are each subject to the satisfaction of the following conditions:

 

(a)                                  the
fact that the Closing Date shall have occurred on or prior to March 31,
2001;

 

42

 

(b)                                 receipt
by the Administrative Agent of a Notice of Borrowing as required by
Section 2.02, 2.03 or 2.16(b),
as the case may be, or receipt by the relevant LC Issuing Bank of a notice of proposed
issuance or extension as required by Section 2.17(b) or (e), as the case may be;

 

(c)                                  the
fact that, immediately after such Borrowing or issuance or extension of a
Letter of Credit, the sum of the aggregate outstanding principal amount of the
Loans plus the Aggregate LC Exposure (and, in the case of a Swingline
Borrowing, the Swingline Loans) will not exceed the aggregate amount of the
Commitments;

 

(d)                                 the
fact that, immediately before and after such Borrowing or issuance or extension
of a Letter of Credit, no Default shall have occurred and be continuing;

 

(e)                                  the
fact that the representations and warranties of the Borrower contained in this
Agreement shall be true on and as of the date of such Borrowing or issuance or
extension of a Letter of Credit;

 

(f)                                    the
Required Lenders have not provided notice to the Administrative Agent that, in
their good faith determination, there has been a material adverse change since
November 30, 2000 in the business, operations, properties, financial
condition or prospects of the Borrower and its Subsidiaries, considered as a
whole; and

 

(g)                                 the
fact that, with respect to a requested Borrowing, immediately after such
Borrowing the aggregate principal amount of all Loans and Swingline Loans then
outstanding is not in excess of $1,000,000,000.

 

Each Borrowing and each issuance or extension of a Letter of Credit
shall be deemed to be a representation and warranty by the Borrower on the date
of such Borrowing or issuance or extension of a Letter of Credit as to the
facts specified in clauses  (c), (d) and (e) of this Section.

 

SECTION 3.04.  Existing Letters of
Credit.  On and subject to
the occurrence of the Closing Date, each letter of credit set forth in
Schedule 3.04 hereto shall be deemed for all purposes of this Agreement a
Letter of Credit issued hereunder on the Closing Date, as to which the issuer
thereof is an LC Issuing Bank and as to which each other Lender has a
participation to the extent of its Commitment Percentage thereof.

 

43

 

ARTICLE 4

 

REPRESENTATIONS AND WARRANTIES

 

The Borrower represents and warrants that:

 

SECTION 4.01.  Corporate Existence and
Power.  The Borrower is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Nevada, and has all corporate powers and all material
governmental licenses, authorizations, consents and approvals required to carry
on its business as now conducted.

 

SECTION 4.02.  Corporate and Governmental
Authorization.  The
execution, delivery and performance by the Borrower of the Financing Documents
(i) are within its corporate powers, (ii) have been duly authorized by all
necessary corporate action, (iii) require no action by or in respect of, or
filing with, any governmental body, agency or official, (iv) do not contravene
any provision of applicable law or regulation or of the articles of
incorporation or by-laws of the Borrower, (v) do not constitute a breach of or
default under any agreement, judgment, injunction, order, decree or other
instrument binding upon the Borrower or any of its Subsidiaries, except for
breaches and defaults which, in the aggregate, could not reasonably be expected
to have a Material Adverse Effect or have an adverse effect on the validity or
enforceability of any material provision of any Financing Document, or (vi)
result in the creation or imposition of any Lien on any asset of the Borrower
or any of its Subsidiaries.

 

SECTION 4.03.  Binding Effect.  This Agreement constitutes a
valid and binding agreement of the Borrower and the Notes and the Swingline
Note, when executed and delivered in accordance with this Agreement, will
constitute valid and binding obligations of the Borrower, in each case
enforceable against the Borrower in accordance with its terms.

 

SECTION 4.04.  Financial Information.  (a) The consolidated balance
sheet of the Borrower and its Subsidiaries as of May 31, 2000 and the
related consolidated statements of operations, cash flows and changes in
stockholders’ equity for the Fiscal Year then ended, reported on by KPMG LLP
and set forth in the Borrower’s 2000 Form 10-K, a copy of which has been
delivered to each of the Lenders, fairly present, in conformity with GAAP, the
consolidated financial position of the Borrower and its Subsidiaries as of such
date and their consolidated results of operations and cash flows for such
Fiscal Year.

 

(b)                                 The
unaudited condensed consolidated balance sheet of the Borrower and its
Subsidiaries as of November 30, 2000 and the related unaudited condensed
consolidated statements of operations and cash flows for the six months then

 

44

 

ended, set forth in the
Borrower’s quarterly report on Form 10-Q for the Fiscal Quarter ended
November 30, 2000, a copy of which has been delivered to each of the
Lenders, fairly present, on a basis consistent with the financial statements
referred to in subsection (a) of this Section, the consolidated
financial position of the Borrower and its Subsidiaries as of such date and
their consolidated results of operations and cash flows for such six-month
period (subject to normal year-end adjustments).

 

SECTION 4.05.  Litigation.  Except as described in
Schedule 4.05 hereto, there are no actions, suits or proceedings pending
against, or to the knowledge of the Borrower threatened against, the Borrower
or any of its Subsidiaries or any of their respective properties, before any
court or arbitrator or any governmental body, agency or official in which there
is a reasonable possibility of adverse decisions which in the aggregate could
reasonably be expected to have a Material Adverse Effect or which in any manner
draw into question the validity of any of the Financing Documents.

 

SECTION 4.06.  Compliance with ERISA.  Each member of the ERISA Group
has fulfilled its obligations under the minimum funding standards of ERISA and
the Internal Revenue Code with respect to each Plan and is in compliance in all
material respects with the presently applicable provisions of ERISA and the
Internal Revenue Code with respect to each Plan.  No member of the ERISA Group has (i) sought a waiver of the
minimum funding standard under Section 412 of the Internal Revenue Code in
respect of any Plan, (ii) failed to make any contribution or payment to any
Plan or Multiemployer Plan, or made any amendment to any Plan, which has
resulted or could result in the imposition of a Lien or the posting of a bond
or other security under ERISA or the Internal Revenue Code or (iii) incurred
any liability under Title IV of ERISA other than a liability to the PBGC for
premiums under Section 4007 of ERISA.

 

SECTION 4.07.  Compliance with Laws.  The Borrower and its Subsidiaries
are in compliance in all material respects with all applicable laws, rules and
regulations (including without limitation health care laws, rules and
regulations), other than such laws, rules or regulations (i) the validity or
applicability of which the Borrower or such Subsidiary is contesting in good
faith by appropriate proceedings or (ii) failures to comply with which could
not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

SECTION 4.08.  Environmental Matters.  The Borrower has reviewed the
effect of Environmental Laws on the business, operations and properties of the
Borrower and its Subsidiaries, and has in good faith attempted to identify and
evaluate the associated liabilities and costs (including, without limitation,
capital or operating expenditures required for clean-up or closure of
properties presently

 

45

 

or previously owned, capital or
operating expenditures required to achieve or maintain compliance with
environmental protection standards imposed by law or as a condition of any
license, permit or contract, any related constraints on operating activities,
including any periodic or permanent shutdown of any facility or reduction in
the level of or change in the nature of operations conducted thereat, any costs
or liabilities in connection with off-site disposal of wastes or Hazardous
Substances, and  actual or potential
liabilities to third parties, including employees, and any related costs and
expenses).  On the basis of the foregoing
review, the Borrower has reasonably concluded that such associated liabilities
and costs, including the costs of compliance with Environmental Laws, are
unlikely to have a Material Adverse Effect.

 

SECTION 4.09.  Taxes.  The Borrower and its Subsidiaries
have filed all United States Federal income tax returns and all other material
tax returns which are required to be filed by them and have paid all taxes
shown to be due on such returns or pursuant to any assessment received by any
of them (unless such assessment is being contested in good faith by appropriate
proceedings).  The charges, accruals and
reserves on the books of the Borrower and its Subsidiaries in respect of taxes
or other governmental charges are, in the opinion of the Borrower, adequate.

 

SECTION 4.10.  Material Subsidiaries.  Each Material Subsidiary is a
corporation duly incorporated, validly existing and in good standing under the
laws of its jurisdiction of incorporation, and has all corporate powers and all
material governmental licenses, authorizations, consents and approvals required
to carry on its business as now conducted.

 

SECTION 4.11.  Certain Laws Not
Applicable.  The Borrower is
neither an “investment company”
nor a Person directly or indirectly “controlled”
by or “acting on behalf of” an “investment company” within the meaning of
the Investment Company Act of 1940, as amended.  The Borrower is neither a “holding
company”, nor an “affiliate”
of a “holding company” or a “subsidiary company” of a “holding company”, as such terms are defined
in the Public Utility Holding Company Act of 1935, as amended.

 

SECTION 4.12.  Full Disclosure.  All information heretofore
furnished by the Borrower to any Agent or any Lender for purposes of or in
connection with this Agreement or any transaction contemplated hereby is, and
all such information hereafter furnished by the Borrower to any Agent or any
Lender will be, taken as a whole, true and accurate in all material respects on
the date as of which such information is stated or certified.  The Borrower has disclosed to the Lenders in
writing any and all facts which have or may (to the extent the Borrower can now
reasonably foresee) have a Material Adverse Effect.

 

46

 

ARTICLE 5

 

COVENANTS

 

The Borrower agrees that, so long as any Lender has any Credit Exposure
hereunder or any Swingline Loan remains outstanding or any interest or fees
accrued hereunder remain unpaid:

 

SECTION 5.01.  Information.  The Borrower will deliver to each
Lender:

 

(a)                                  as
soon as available and in any event within 105 days after the end of each Fiscal
Year, an audited consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of such Fiscal Year and the related audited
consolidated statements of operations, cash flows and changes in stockholders’
equity for such Fiscal Year, setting forth in each case in comparative form the
figures for the previous Fiscal Year, all reported on in a manner acceptable to
the SEC by KPMG LLP or other independent public accountants of nationally
recognized standing;

 

(b)                                 as
soon as available and in any event within 60 days after the end of each of the
first three Fiscal Quarters of each Fiscal Year, a condensed consolidated
balance sheet of the Borrower and its Subsidiaries as of the end of such Fiscal
Quarter, the related condensed consolidated statements of operations for such
Fiscal Quarter and for the portion of the Fiscal Year ended at the end of such
Fiscal Quarter and the related condensed consolidated statement of cash flows
for the portion of the Fiscal Year then ended, setting forth in the case of
such condensed consolidated statements of operations and cash flows in
comparative form the figures for the corresponding Fiscal Quarter and the
corresponding portion of the previous Fiscal Year, all certified (subject to
normal year-end adjustments) as to fairness of presentation and consistency
with GAAP by a Senior Officer of the Borrower;

 

(c)                                  concurrently
with the delivery of each set of financial statements referred to in
clauses  (a) and (b) above, a certificate of a Senior Officer of the Borrower
(i) setting forth in reasonable detail the calculations required to
establish whether the Borrower was in compliance with the requirements of
Sections 5.09 to 5.11, inclusive, on the date of such
financial statements and (ii) stating whether any Default exists on the
date of such certificate and, if any Default then exists, setting forth the
details thereof and the action which the Borrower is taking or proposes to take
with respect thereto;

 

(d)                                 simultaneously
with the delivery of each set of financial statements referred to in
clause  (a) above, a statement by the firm of independent public
accountants which reported on such statements that, in making the examination

 

47

 

necessary for reporting on such
financial statements, they did not obtain knowledge of any Default hereunder
except as described in such statement;

 

(e)                                  within
five days after any officer of the Borrower obtains knowledge of any Default,
if such Default is then continuing, a certificate of a Senior Officer of the
Borrower setting forth the details thereof and the action which the Borrower is
taking or proposes to take with respect thereto;

 

(f)                                    promptly
upon the mailing thereof to the shareholders of the Borrower generally, copies
of all financial statements, reports and proxy statements so mailed;

 

(g)                                 promptly
upon the filing thereof, copies of all registration statements (other than the
exhibits thereto and any registration statements on Form S-8 or its
equivalent) and reports on Forms 10-K, 10-Q and 8-K (or their equivalents)
which the Borrower shall have filed with the SEC;

 

(h)                                 if
and when any member of the ERISA Group (i) gives or is required to give
notice to the PBGC of any “reportable event”
(as defined in Section 4043 of ERISA) with respect to any Plan which might
constitute grounds for a termination of such Plan under Title IV of ERISA, or
knows that the plan administrator of any Plan has given or is required to give
notice of any such reportable event, a copy of the notice of such reportable
event given or required to be given to the PBGC; (ii) receives notice of
complete or partial withdrawal liability under Title IV of ERISA or notice that
any Multiemployer Plan is in reorganization, is insolvent or has been
terminated, a copy of such notice; (iii) receives notice from the PBGC
under Title IV of ERISA of an intent to terminate, impose liability (other than
for premiums under Section 4007 of ERISA or premium-related penalties) in
respect of, or appoint a trustee to administer any Plan, a copy of such notice;
(iv) applies for a waiver of the minimum funding standard under
Section 412 of the Internal Revenue Code, a copy of such application;
(v) gives notice of intent to terminate any Plan under Section 4041(c) of
ERISA, a copy of such notice and other information filed with the PBGC;
(vi) gives notice of withdrawal from any Plan pursuant to
Section 4063 of ERISA, a copy of such notice; or (vii) fails to make
any payment or contribution to any Plan or Multiemployer Plan or makes any
amendment to any Plan which has resulted or could result in the imposition of a
Lien or the posting of a bond or other security, a certificate of a Senior
Officer of the Borrower setting forth details as to such occurrence and the
action, if any, which the Borrower or applicable member of the ERISA Group is
required or proposes to take; and

 

48

 

(i)                                     from
time to time such additional information regarding the financial position or
business of the Borrower and its Subsidiaries as the Administrative Agent, at
the request of any Lender, may reasonably request.

 

SECTION 5.02.  Maintenance of Property;
Insurance.  (a) The Borrower
and each Material Subsidiary will keep all property useful and necessary in its
business in good working order and condition, ordinary wear and tear excepted.

 

(b)                                 The
Borrower and each Material Subsidiary will maintain, with financially sound and
reputable insurance companies (which may be Affiliates of the Borrower or part
of the Borrower’s self-insurance program) insurance on all their properties in
at least such amounts and against at least such risks as are usually insured
against in the same general area and by companies engaged in the same or
similar businesses and maintain professional liability and malpractice
insurance against claims usually insured against by companies engaged in the
same or similar businesses, and furnish to each Lender, upon written request by
any of the Agents, full information as to the insurance carried.

 

SECTION 5.03.  Conduct of Business;
Maintenance of Existence.  (a)
The Borrower and its Material Subsidiaries will continue to engage primarily in
business of the same general type as now conducted by the Borrower and its
Material Subsidiaries.

 

(b)                                 The
Borrower and each Material Subsidiary will preserve, renew and keep in full
force and effect its corporate existence and take all reasonable action to
maintain its rights, privileges and franchises necessary or desirable in the
normal conduct of business, provided
that (i) the foregoing shall not prohibit any merger, consolidation or
sale of assets expressly permitted by Section 5.06 and (ii) any
Material Subsidiary may liquidate or dissolve if the Borrower in good faith
determines that such liquidation or dissolution is in the best interests of the
Borrower and its Subsidiaries and not materially adverse to the Lenders.

 

SECTION 5.04.  Compliance with Laws.  The Borrower and each Material
Subsidiary will comply with all material applicable laws, ordinances, rules,
regulations and requirements of governmental authorities (including without
limitation Environmental Laws, ERISA and the rules and regulations thereunder
and Public Law 92-603), and hold and maintain in full force and effect all
certifications, governmental approvals, licenses and permits necessary or
desirable to enable the Borrower and its Material Subsidiaries to conduct their
respective businesses as now conducted, except where the failure to comply
therewith or hold and maintain such certifications, governmental approvals,
licenses or permits could not, in the aggregate, reasonably be expected to have
a Material Adverse Effect.

 

49

 

SECTION 5.05.  Inspection of Property, Books
and Records.  The Borrower
and each Material Subsidiary will keep proper books of record and account in
which full, true and correct entries shall be made of all dealings and
transactions in relation to its business and activities; and will permit
representatives of the Administrative Agent (at the request of any Lender) at
such requesting Lender’s expense to visit and inspect any of their respective
properties, to examine and make abstracts (at such Lender’s expense, unless an
Event of Default shall have occurred and be continuing, in which case at the
Borrower’s expense) from any of their respective books and records and to
discuss their respective affairs, finances and accounts with officers of the
Borrower and with the accountants of the Borrower, all upon reasonable notice
and at such reasonable times and as often as may reasonably be desired.

 

SECTION 5.06.  Consolidations, Mergers and
Sales of Assets.  The
Borrower will not merge or consolidate with any other Person, or sell or
otherwise transfer all or substantially all of its assets to any other Person,
unless after giving effect to such merger, consolidation, sale or other
transfer, (i) no Default shall have occurred and be continuing and
(ii) the corporation surviving such merger or consolidation (if other than
the Borrower) or the Person acquiring such assets is organized under the laws
of a state of the United States and assumes in writing all the obligations of
the Borrower hereunder and said surviving corporation or acquiring Person
delivers to each Lender an opinion of counsel reasonably satisfactory to the
Required Lenders, in form and substance satisfactory to the Required Lenders,
to the effect that the assumption of such obligations by such surviving
corporation or acquiring Person is effective and is fully binding upon and
enforceable against such surviving corporation or acquiring Person.

 

SECTION 5.07.  Negative Pledge.  After the Closing Date, neither
the Borrower nor any Subsidiary will create, assume or suffer to exist any Lien
on any asset now owned or hereafter acquired by it, except:

 

(a)                                  any
Lien existing prior to the Closing Date securing Debt;

 

(b)                                 any
Lien on bonds issued by the Metrocrest Hospital Authority (and related proceeds
and other distributions) granted to secure the Borrower’s obligations under the
Metrocrest Reimbursement Agreement and the Securities Pledge and Security
Agreement referred to therein;

 

(c)                                  any
Lien arising out of the refinancing, extension, renewal or refunding of any
Debt secured by any Lien permitted by clause  (a) above; provided that (i) the principal
amount of such Debt is not increased and (ii) such Debt is not secured by
any additional assets;

 

50

 

(d)                                 if
the letters of credit issued pursuant to the Metrocrest Reimbursement Agreement
are replaced by other letters of credit issued for the same purpose, any Lien
securing the Borrower’s obligations under the reimbursement agreement relating
to such replacement letters of credit; provided
that (i) the aggregate amount of such letters of credit does not exceed
$70,000,000 and (ii) the Borrower’s obligations under the related reimbursement
agreement are not secured or required to be secured by any assets except the
assets by which the Borrower’s obligations under the Metrocrest Reimbursement
Agreement are secured or required to be secured;

 

(e)                                  any
Lien securing Non-Recourse Purchase Money Debt;

 

(f)                                    any
Lien on assets of a Person which becomes a Subsidiary after the Closing Date; provided that such Lien secures only
(i) Debt of such Person that is outstanding when such Person becomes a
Subsidiary and was not created in contemplation of such event or (ii) Debt
incurred solely for the purpose of refinancing Debt described in the foregoing
clause (i);

 

(g)                                 carriers’,
warehousemen’s, mechanics’, transporters, materialmen’s, repairmen’s or other
like Liens arising in the ordinary course of business;

 

(h)                                 any
Lien imposed by any governmental authority for taxes, assessments, governmental
charges, duties or levies not delinquent or which are being contested in good
faith and by appropriate proceedings; provided
that adequate reserves with respect thereto are maintained on the books of the
Borrower and its Subsidiaries in accordance with GAAP;

 

(i)                                     Liens
on cash and cash equivalents securing obligations of the Borrower and its
Subsidiaries with respect to workers’ compensation, malpractice and other
insurance policies;

 

(j)                                     Liens
arising in the ordinary course of business (other than Liens permitted by
clause (g), (h) or (i) above) which (i) do not secure Financial  Obligations and (ii) do not secure monetary
obligations in an aggregate outstanding amount exceeding $70,000,000;

 

(k)                                  Liens
on cash and cash equivalents securing Hedging Obligations, provided that the aggregate amount of cash
and cash equivalents subject to such Liens may not exceed $100,000,000 at any
time;

 

(l)                                     any
Lien on cash and cash equivalents securing LC Reimbursement Obligations
pursuant to Section 6.03;

 

51

 

(m)                               any
Lien on an asset leased by the Borrower or a Subsidiary under a capital lease
securing its obligations as lessee under such capital lease;

 

(n)                                 any
Lien on any asset of a Subsidiary securing Debt owed to the Borrower; and

 

(o)                                 Liens
(other than Liens on capital stock of a Subsidiary) not otherwise permitted by
the foregoing clauses of this Section securing Debt; provided that, immediately after any such
Debt is incurred, the sum of (i) the aggregate outstanding principal amount of
all Debt secured pursuant to this clause (o) and (ii) without duplication, the
aggregate outstanding principal amount of Debt of Subsidiaries incurred in
reliance on clause (g) of Section 5.08 shall not exceed 5.0% (or, if at
such time the Borrower has Investment Grade Ratings from S&P and Moody’s
and at least one such rating is BBB or Baa2 or better, 20.0%) of the
Consolidated Net Worth of the Borrower at such time.

 

SECTION 5.08.  Debt of Subsidiaries.  After the Closing Date, no
Subsidiary will incur, assume or otherwise be liable in respect of any Debt,
except:

 

(a)                                  Debt
outstanding at the close of business on November 30, 2000 in an aggregate
principal or face amount not exceeding $400,000,000;

 

(b)                                 Debt
owing to the Borrower;

 

(c)                                  Non-Recourse
Purchase Money Debt;

 

(d)                                 Debt
of any Person which becomes a Subsidiary after the Closing Date; provided that
(i) such Debt is outstanding when such Person becomes a Subsidiary and was not
created in contemplation of such event or (ii) such Debt is incurred solely for
the purpose of refinancing Debt described in the foregoing clause (i);

 

(e)                                  Guarantees
by any Subsidiary of Debt relating to any assets sold or otherwise disposed of
by it; provided that such Debt was outstanding when such assets were disposed
of and was not created in contemplation of the disposition thereof;

 

(f)                                    Debt
consisting of the obligations of any Subsidiary as lessee which are capitalized
in accordance with GAAP; and

 

(g)                                 Debt
of any Subsidiary not otherwise permitted by the foregoing clauses of this
Section; provided that immediately after any such Debt is incurred,

 

52

 

the sum of (i) the aggregate
outstanding principal amount of all Debt of Subsidiaries permitted by this
clause (g) and (ii) without duplication, the aggregate principal amount of
secured Debt of the Borrower or any Subsidiary incurred in reliance on clause
(o) of Section 5.07 shall not exceed 5.0% (or, if at such time the
Borrower has Investment Grade Ratings from S&P and Moody’s and at least one
such rating is BBB or Baa2 or better, 20%) of the Consolidated Net Worth of the
Borrower at such time.

 

SECTION 5.09.  Leverage Ratio.  At the close of business on any
day on or after the Closing Date, the ratio of (i) Consolidated Total Debt at
such time to (ii) Consolidated EBITDA for the period of four consecutive Fiscal
Quarters most recently ended at or prior to such time (the “Leverage Ratio”) will not be greater than
3.50 to 1.

 

SECTION 5.10.  Consolidated Net Worth.  Consolidated Net Worth will at no
time be less than the sum of (i) $3,600,000,000 plus (ii) 50% of the consolidated net income of the Borrower
and its Subsidiaries for each Fiscal Quarter commencing after November 30,
2000, if positive, plus (iii) 50%
of the amount by which Consolidated Net Worth shall have been increased as a
result of any issuance of capital stock of the Borrower after November 30,
2000 minus (iv) 100% of the
amount by which Consolidated Net Worth shall have been decreased as a result of
Non-Cash Charges reported after November 30, 2000 minus (v) 100% of the amount by which
Consolidated Net Worth shall have been decreased as a result of any repurchase
by the Borrower of its capital stock after November 30, 2000 that is
permitted under Section 5.12 hereof.

 

SECTION 5.11.  Fixed Charge Ratio.  At the end of each Fiscal Quarter
ending after the Closing Date, the ratio of (i) the sum of Consolidated EBITDA
plus Consolidated Rental Expense to (ii) the sum of Consolidated Interest
Expense plus Consolidated Rental Expense, all calculated for the period of four
consecutive Fiscal Quarters then ended, will not be less than 2.0 to 1.

 

SECTION 5.12.  Restricted Payments.  Neither the Borrower nor any
Subsidiary will declare or make (i) any dividend or other distribution on any
shares of capital stock of the Borrower (except dividends payable solely in
shares of its capital stock) or (ii) any payment on account of the purchase,
redemption or other acquisition of any Equity Interests in the Borrower (any
such dividend, distribution or payment, a “Restricted
Payment”), unless (x) no Default has occurred and is continuing
and (y) either (A) at the time such dividend or distribution is declared,
or such purchase redemption or other acquisition is made (or committed to be
made), and on a pro forma basis
giving effect thereto and to any Debt incurred to fund such dividend,
distribution or payment, the Leverage Ratio is less than 2.50 to 1 or (B) the
aggregate amount of Restricted Payments

 

53

 

 

made after the Closing Date
that are not permitted by clause (A) is less than $50,000,000 (provided that, in determining such
aggregate amount of Restricted Payments, the aggregate payment for a number of
shares of common stock of the Borrower repurchased by it after the Closing Date
up to but not exceeding the aggregate number of shares of such common stock
issued after the Closing Date upon exercise of employee stock options, shall be
deemed to be the positive difference, if any, between (1) the aggregate
purchase price of such repurchased shares and (2) the aggregate exercise price
of such stock options); provided,
however, that, notwithstanding
clause (y) (and without utilizing any amount available under subclause (y)(B)),
the Borrower may from time to time distribute to its stockholders Equity
Interests in other Persons held by the Borrower so long as (i) the
aggregate operating income of such Persons, plus their depreciation and
amortization expense, for the respective periods of four consecutive Fiscal
Quarters most recently ended prior to the respective dates of declaration of
distribution of Equity Interests therein, is less than 5% of Consolidated
EBITDA for the four-quarter period most recently ended prior to the date of
determination, and (ii) the aggregate net tangible assets of all such
Persons (less in the case of any
such Person that is not a wholly-owned Subsidiary, a portion of the net
tangible assets of such Person allocable, on a pro rata basis, to Equity
Interests of such Person held by Persons other than the Borrower and its
Subsidiaries) at the respective dates of declaration of such distributions of
the Equity Interests of such Persons are less than 5% of consolidated net
tangible assets of the Borrower at the end of the Fiscal Quarter of the
Borrower most recently ended prior to the date of declaration thereof; provided, however, that notwithstanding
anything herein to the contrary, neither the Borrower nor any Subsidiary shall
make any Restricted Payment pursuant to clause (y)(A) after September 30,
2003 and before June 30, 2004.

 

SECTION 5.13.  Transactions with
Affiliates.  The Borrower
will not, and will not permit any Subsidiary to, directly or indirectly, pay
any funds to or for the account of, make any investment (whether by acquisition
of stock or indebtedness, by loan, advance, transfer of property, guarantee or
other agreement to pay, purchase or service, directly or indirectly, any Debt,
or otherwise) in, lease, sell, transfer or otherwise dispose of any assets,
tangible or intangible, to, or participate in, or effect, any transaction with,
any Affiliate except on an arms-length basis on terms at least as favorable to
the Borrower or such Subsidiary as it could have obtained from a third party
who was not an Affiliate; provided
that the foregoing provisions of this Section shall not prohibit
(x) any such Person from declaring or paying any lawful dividend or other
payment ratably in respect of all of its capital stock of the relevant class so
long as, after giving effect thereto, no Default shall have occurred and be
continuing or (y) any such transaction between or among the Borrower and
its Subsidiaries.

 

54

 

SECTION 5.14.  Payment of Dividends by
Material Subsidiaries.  After
the Closing Date neither the Borrower nor any of its Material Subsidiaries will
enter into any agreement or arrangement which would limit in any way the
ability of any Material Subsidiary to pay any dividend.

 

SECTION 5.15.  Use of Proceeds.  (a) The proceeds of the Loans will
be used by the Borrower for general corporate purposes (including working
capital needs) of the Borrower and its Subsidiaries.

 

(b)                                 The
Letters of Credit will be used by the Borrower for the general corporate
purposes of the Borrower and its Subsidiaries.

 

(c)                                  Neither
the proceeds of the Loans nor any Letter of Credit will be used, directly or
indirectly, for the purpose, whether immediate, incidental or ultimate, of
buying or carrying any “margin stock”
within the meaning of Regulation U in any manner which would (i) violate any
applicable law or regulation or (ii) require any Form FRU-1 or any successor
form to be executed.

 

SECTION 5.16.  Prepayment of Debt.  Neither the Borrower nor any
Subsidiary shall prepay, repurchase, redeem or defease the principal of any
Debt (other than the Loans and Letters of Credit) having an outstanding
principal amount in excess of $50,000,000, at any time prior to the 90th day
before such Debt (or the portion thereof prepaid, repurchased, redeemed or
defeased) is due, at any time that the Leverage Ratio is greater than 2.50 to 1
(after giving effect to such prepayment, repurchase, redemption or defeasance
and the incurrence of any Debt in connection therewith), unless (i) there are
no Loans outstanding hereunder immediately before or immediately after such
prepayment, redemption or defeasance and (ii) the consolidated amount of
unrestricted cash and cash equivalents of the Borrower and its Subsidiaries
which are not subject to Liens is equal to or greater than $100,000,000 after
giving effect to such prepayment, repurchase, redemption or defeasance.

 

ARTICLE 6

 

DEFAULTS

 

SECTION 6.01.  Events of Default.  If one or more of the following
events (“Events of Default”) shall
have occurred:

 

(a)                                  any
principal of any Loan or Swingline Loan shall not be paid when due;

 

55

 

(b)                                 any
LC Reimbursement Obligation, any interest on any Loan, Swingline Loan or LC
Reimbursement Obligation, any fee or any other amount payable under any
Financing Document shall not be paid within three Domestic Business Days after
it becomes due;

 

(c)                                  the
Borrower or any Subsidiary shall fail to comply with any covenant applicable to
it contained in Section 5.01(e) and Sections 5.06 through 5.16, inclusive;

 

(d)                                 the
Borrower shall fail to observe or perform any covenant or agreement contained
in this Agreement (other than those covered by clause (a), (b) or
(c) above) within 30 days after the earlier of (i) the date the Borrower
first learns of such failure and (ii) the date written notice thereof has been
given to the Borrower by the Administrative Agent at the request of the
Required Lenders;

 

(e)                                  any
representation, warranty, certification or statement made by the Borrower in
this Agreement or by the Borrower or any Subsidiary in any certificate,
financial statement or other document delivered pursuant hereto shall prove to
have been incorrect in any material respect when made (or deemed made);

 

(f)                                    the
Borrower and/or one or more Subsidiaries shall fail to make one or more
payments in respect of Material Financial Obligations when due or within any
applicable grace period;

 

(g)                                 any
event or condition shall occur which results in the acceleration of the
maturity of any Material Financial Obligations, or enables (any applicable
grace period having expired) the holder or holders of any Material Financial
Obligations or any Person acting on their behalf to accelerate the maturity
thereof;

 

(h)                                 the
Borrower or any Material Subsidiary shall commence a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to
itself or its debts under any bankruptcy, insolvency or other similar law now
or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator,
custodian or other similar official of it or any substantial part of its
property, or shall consent to any such relief or to the appointment of or
taking possession by any such official in an involuntary case or other
proceeding commenced against it, or shall make a general assignment for the
benefit of creditors, or shall fail generally to pay its debts as they become
due, or shall take any corporate action to authorize any of the foregoing;

 

(i)                                     an
involuntary case or other proceeding shall be commenced against the Borrower or
any Material Subsidiary seeking liquidation, reorganization or

 

56

 

other relief with respect to it
or its debts under any bankruptcy, insolvency or other similar law now or hereafter
in effect or seeking the appointment of a trustee, receiver, liquidator,
custodian or other similar official of it or any substantial part of its
property, and such involuntary case or other proceeding shall remain
undismissed and unstayed for a period of 60 days; or an order for relief shall
be entered against the Borrower or any Material Subsidiary under the federal
bankruptcy laws as now or hereafter in effect;

 

(j)                                     any
member of the ERISA Group shall fail to pay when due an amount or amounts aggregating
in excess of $70,000,000 which it shall have become liable to pay under Title
IV of ERISA; or notice of intent to terminate a Material Plan shall be filed
under Title IV of ERISA by any member of the ERISA Group, any plan
administrator or any combination of the foregoing; or the PBGC shall institute
proceedings under Title IV of ERISA to terminate, to impose liability (other
than for premiums under Section 4007 of ERISA or premium-related
penalties) in respect of, or to cause a trustee to be appointed to administer
any Material Plan; or a condition shall exist by reason of which the PBGC would
be entitled to obtain a decree adjudicating that any Material Plan must be
terminated; or there shall occur a complete or partial withdrawal from, or a
default, within the meaning of Section 4219(c)(5) of ERISA, with
respect to, one or more Multiemployer Plans which could cause one or more
members of the ERISA Group to incur a current payment obligation in excess of
$70,000,000;

 

(k)                                  a
judgment or order for the payment of money in excess of $70,000,000 (net of
insurance to the extent that the insurer shall have admitted coverage thereof)
shall be rendered against the Borrower or any Subsidiary and such judgment or
order shall continue unsatisfied and unstayed for a period of 30 days; or

 

(l)                                     any
person or group of persons (within the meaning of Section 13 or 14 of the
Exchange Act) shall have acquired beneficial ownership (within the meaning of
Rule 13d-3 promulgated by the SEC under the Exchange Act) of 20% or more
of the outstanding shares of common stock of the Borrower; or Continuing
Directors shall no longer constitute a majority of the Borrower’s board of
directors;

 

then, and in every such event, while such event is continuing, the
Administrative Agent shall:

 

(i)                                     if requested by
Lenders having more than 50% in aggregate amount of the Commitments, by notice
to the Borrower terminate the Commitments and the Swingline Commitment and they
shall thereupon terminate,

 

57

 

(ii)                                  if requested by
Lenders having more than 50% of the Aggregate LC Exposure, by notice to each LC
Issuing Bank instruct such LC Issuing Bank (x) not to extend the expiry
date of any outstanding Letter of Credit and/or (y) in the case of any
Evergreen Letter of Credit, to give notice to the beneficiary thereof
terminating such Letter of Credit as soon as is permitted by the provisions
thereof, whereupon such LC Issuing Bank shall deliver notice to that effect
promptly (or as soon thereafter as is permitted by the provisions of the
relevant Letter of Credit) to the beneficiary of each such Letter of Credit and
the Borrower; and

 

(iii)                               if requested by Lenders
holding Notes evidencing more than 50% in aggregate outstanding principal
amount of the Loans, by notice to the Borrower declare the Notes and the
Swingline Note (in each case together with accrued interest thereon) to be, and
the Notes and the Swingline Note shall thereupon become, immediately due and
payable without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Borrower;

 

provided that, if
any Event of Default specified in clause  (h) or (i) above occurs
with respect to the Borrower, then without any notice to the Borrower or any
other act by the Administrative Agent or the Lenders, the Commitments and the
Swingline Commitment shall thereupon terminate and the Notes and the Swingline
Note (in each case together with accrued interest thereon) shall become
immediately due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Borrower.

 

SECTION 6.02.  Notice of Default.  The Administrative Agent shall
give notice to the Borrower under clause  (d) of Section 6.01 promptly upon being requested to do
so by the Required Lenders and shall thereupon notify all the Lenders thereof.

 

SECTION 6.03.  Cash Cover.  The Borrower agrees that, if an
Event of Default shall have occurred and be continuing and Lenders having more
than 50% of the Aggregate LC Exposure instruct the Administrative Agent to
request cash collateral pursuant to this Section, the Borrower will, promptly
after it receives such request from the Administrative Agent, pay to the
Administrative Agent an amount in immediately available funds equal to the then
aggregate amount available for subsequent drawings under all outstanding
Letters of Credit, to be held by the Administrative Agent, under arrangements
satisfactory to it, to secure the payment of all LC Reimbursement Obligations
arising from subsequent drawings under such Letters of Credit; provided that, if any Event of Default
specified in clause  (h) or (i) of Section 6.01 occurs with respect to the Borrower,

 

58

 

the Borrower shall pay such
amount to the Administrative Agent forthwith without any notice or demand or
any other act by the Administrative Agent or the Lenders.

 

ARTICLE 7

 

THE AGENTS

 

SECTION 7.01.  Appointment and
Authorization.  Each Lender
irrevocably appoints and authorizes the Administrative Agent to take such
action as agent on its behalf and to exercise such powers under this Agreement
as are delegated to it by the terms hereof, together with all such powers as
are reasonably incidental thereto.

 

SECTION 7.02.  Agents and Affiliates.  Each of Morgan Guaranty Trust
Company of New York, Bank of America, N.A., The Bank of New York, The Bank of
Nova Scotia and Salomon Smith Barney Inc. shall have the same rights and powers
under the Financing Documents as any other Lender and may exercise or refrain
from exercising the same as though it were not an Agent, and each of Morgan
Guaranty Trust Company of New York, Bank of America, N.A., The Bank of New
York, The Bank of Nova Scotia and Salomon Smith Barney Inc. and their
respective Affiliates may accept deposits from, lend money to, and generally
engage in any kind of business with the Borrower or any of the Borrower’s
Subsidiaries or Equity Affiliates as if it were not an Agent under any of the
Financing Documents.

 

SECTION 7.03.  Action by the Administrative
Agent.  The obligations of
the Administrative Agent hereunder are only those expressly set forth
herein.  Without limiting the generality
of the foregoing, the Administrative Agent shall not be required to take any
action with respect to any Default, except as expressly provided in
Article 6.

 

SECTION 7.04.  Consultation with
Experts.  The Administrative
Agent may consult with legal counsel (who may be counsel for the Borrower),
independent public accountants and other experts selected by it with reasonable
care and shall not be liable for any action taken or omitted to be taken by it
in good faith in accordance with the advice of such counsel, accountants or
experts.

 

SECTION 7.05.  Liability of the Agents.  None of the Agents, their
respective Affiliates and their respective directors, officers, agents or
employees shall be liable for any action taken or not taken by such Person in
connection with any Financing Document (i) in the absence of its own gross
negligence or willful

 

59

 

misconduct or (ii) with the
consent or at the request of the Required Lenders, provided that this clause  (ii) shall not affect
any rights the Borrower may have against the Lenders that made such
request.  None of the Agents, the
Managing Agents, the Co-Agents, their respective Affiliates and their
respective directors, officers, agents or employees shall be responsible for or
have any duty to ascertain, inquire into or verify (i) any statement,
warranty or representation made in connection with any Financing Document or
any Borrowing; (ii) the performance or observance of any of the covenants
or agreements of the Borrower in any Financing Document; (iii) the satisfaction
of any condition specified in Article 3, except, in the case of the
Administrative Agent, receipt of items required to be delivered to it; or (iv)
the validity, effectiveness or genuineness of any Financing Document or any
other instrument or writing furnished in connection therewith.  The Administrative Agent shall not incur any
liability by acting in reliance upon any notice, consent, certificate,
statement, or other writing (which may be a bank wire, telex, facsimile
transmission or similar writing) believed by it to be genuine or to be signed
by the proper party or parties.

 

SECTION 7.06.  Indemnification.  The Lenders shall, ratably in
accordance with their Credit Exposures, indemnify each Agent, the Swingline
Bank, their respective Affiliates and their respective directors, officers,
agents and employees (to the extent not reimbursed by the Borrower) against any
cost, expense (including counsel fees and disbursements), claim, demand,
action, loss or liability (except such as result from the relevant indemnitee’s
gross negligence or willful misconduct) that such indemnitees may suffer or
incur in connection with the Financing Documents or any action taken or omitted
by the relevant indemnitee thereunder.

 

SECTION 7.07.  Credit Decision.  Each Lender acknowledges that it
has, independently and without reliance upon any Agent, Managing Agent,
Co-Agent or other Lender, and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement.  Each Lender also
acknowledges that it will, independently and without reliance upon any Agent,
Managing Agent, Co-Agent or other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking any action under the Financing
Documents.

 

SECTION 7.08.  Successor Administrative
Agent.  The Administrative
Agent may resign at any time by giving notice thereof to the Lenders and the
Borrower.  Upon any such resignation,
the Required Lenders shall have the right to appoint a successor Administrative
Agent.  If no successor Administrative
Agent shall have been so appointed by the Required Lenders, and shall have
accepted such appointment, within 30 days after the retiring Administrative
Agent

 

60

 

gives notice of resignation,
then the retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Administrative Agent, which shall be a commercial bank organized or
licensed under the laws of the United States or of any State thereof and having
a combined capital and surplus of at least $50,000,000.  Upon the acceptance of its appointment as
Administrative Agent hereunder by a successor Administrative Agent, such
successor Administrative Agent shall thereupon succeed to and become vested
with all the rights and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and
obligations (excepting liabilities previously incurred) hereunder.  After any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of this
Article shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent.

 

SECTION 7.09.  Fees.  The Borrower shall pay to the
Administrative Agent for its own account fees in the amounts and at the times
previously agreed upon between the Borrower and the Administrative Agent.

 

SECTION 7.10.  Other Agents.  The Managing Agents, Co-Agents
and Agents (other than the Administrative Agent), in their capacities as such,
shall have no duties or obligations of any kind under the Financing
Documents.  The use of the term “Agent” in this Agreement is not intended to
connote any fiduciary or other implied (or express) obligations arising under
agency doctrine of any applicable law. 
Instead, such term is used merely as a matter of market custom, and, in
the case of the Administrative Agent, such term is intended to create or
reflect only an administrative relationship between independent contracting
parties.

 

ARTICLE 8

 

CHANGE IN CIRCUMSTANCE

 

SECTION 8.01.  Basis for Determining
Interest Rate Inadequate or Unfair  .  If on or prior to the first day
of any Interest Period for any Euro-Dollar Loan or Money Market LIBOR Loan:

 

(a)                                  the Administrative
Agent is advised by the Euro-Dollar Reference Banks that deposits in dollars
(in the applicable amounts) are not being offered to the Euro-Dollar Reference
Banks in the relevant market for such Interest Period, or

 

61

 

(b)                                 in the case of a Group
of Euro-Dollar Loans, Lenders having 50% or more of the aggregate principal
amount of such Loans advise the Administrative Agent that the Adjusted London
Interbank Offered Rate as determined by the Administrative Agent will not
adequately and fairly reflect the cost to such Lenders of funding such Loans
for such Interest Period,

 

the Administrative Agent shall forthwith give notice thereof to the
Borrower and the Lenders, whereupon until the Administrative Agent notifies the
Borrower that the circumstances giving rise to such suspension no longer exist,
(i) the obligations of the Lenders to make or maintain Euro-Dollar Loans
shall be suspended and (ii) each outstanding Euro-Dollar Loan shall be
converted into a Base Rate Loan on the last day of the then current Interest
Period applicable thereto.  Unless the
Borrower notifies the Administrative Agent at least two Domestic Business Days
before the date of any Euro-Dollar Borrowing or Money Market LIBOR Borrowing
for which a Notice of Borrowing has previously been given that it elects not to
borrow on such date, (i) if such Borrowing is a Euro-Dollar Borrowing,
such Borrowing shall instead be made as a Base Rate Borrowing and (ii) if
such Borrowing is a Money Market LIBOR Borrowing, the Money Market LIBOR Loans
comprising such Borrowing shall bear interest for each day from and including
the first day to but excluding the last day of the Interest Period applicable
thereto at the Base Rate for such day.

 

SECTION 8.02.  Illegality.  If, on or after the date of this
Agreement, the adoption of any applicable law, rule or regulation, or any
change in any applicable law, rule or regulation, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Lender (or its Euro-Dollar Lending Office) with
any request or directive (whether or not having the force of law) made on or
after the date of this Agreement by any such authority, central bank or
comparable agency shall make it unlawful or impossible for any Lender (or its
Euro-Dollar Lending Office) to make, maintain or fund its Euro-Dollar Loans and
such Lender shall so notify the Administrative Agent, the Administrative Agent
shall forthwith give notice thereof to the other Lenders and the Borrower,
whereupon until such Lender notifies the Borrower and the Administrative Agent
that the circumstances giving rise to such suspension no longer exist, the
obligation of such Lender to make Euro-Dollar Loans, or to convert outstanding
Base Rate Loans into Euro-Dollar Loans, shall be suspended.  Before giving any notice to the
Administrative Agent pursuant to this Section, such Lender shall designate a
different Euro-Dollar Lending Office if such designation will avoid the need
for giving such notice and will not, in the judgment of such Lender, be
otherwise disadvantageous to such Lender. 
If such notice is given, each Euro-Dollar Loan of such Lender then
outstanding shall be

 

62

 

converted to a Base Rate Loan
either (a) on the last day of the then current Interest Period applicable
to such Euro-Dollar Loan if such Lender may lawfully continue to maintain and
fund such Loan to such day or (b) immediately if such Lender shall
determine that it may not lawfully continue to maintain and fund such Loan to
such day.

 

SECTION 8.03.  Increased Cost and Reduced
Return.  (a) If, on or after
(x) the date hereof, in the case of any Euro-Dollar Loan or Letter of
Credit or any obligation to make Euro-Dollar Loans or issue or participate in
any Letter of Credit or (y) the date of the related Money Market Quote, in
the case of any Money Market Loan, the adoption of any applicable law, rule or
regulation, or any change in any applicable law, rule or regulation, or any
change in the interpretation or administration thereof by any governmental authority,
central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender (or its Applicable Lending
Office) or any LC Issuing Bank with any request or directive (whether or not
having the force of law) made on or after the date of this Agreement by any
such authority, central bank or comparable agency shall impose, modify or deem
applicable any reserve (including, without limitation, any such requirement
imposed by the Board of Governors of the Federal Reserve System, but excluding
with respect to any Euro-Dollar Loan any such requirement included in an
applicable Euro-Dollar Reserve Percentage), special deposit, insurance
assessment or similar requirement against assets of, deposits with or for the
account of, or credit (including Letters of Credit and participations therein)
extended by, any Lender (or its Applicable Lending Office) or any LC Issuing
Bank or shall impose on any Lender (or its Applicable Lending Office) or any LC
Issuing Bank or on the London interbank market any other condition affecting
its Euro-Dollar Loans, its Notes, its obligation to make Euro-Dollar Loans, its
Money Market Loans or its obligations hereunder in respect of Letters of
Credit, and the result of any of the foregoing is to increase the cost to such
Lender (or its Applicable Lending Office) or such LC Issuing Bank of making or
maintaining any Euro-Dollar Loan or Money Market Loan or issuing or
participating in any Letter of Credit, or to reduce the amount of any sum received
or receivable by such Lender (or its Applicable Lending Office) or such LC
Issuing Bank under this Agreement or under its Note with respect thereto, by an
amount deemed by such Lender or LC Issuing Bank to be material, then, within 15
days after demand by such Lender or LC Issuing Bank (with a copy to the
Administrative Agent), the Borrower shall pay to such Lender or LC Issuing Bank
such additional amount or amounts as will (subject to subsection (e) of
this Section) compensate such Lender or LC Issuing Bank for such increased cost
or reduction.

 

(b)                                 If
any Lender shall have determined that, after the date hereof, the adoption of
any applicable law, rule or regulation regarding capital adequacy, or

 

63

 

any change in any such law,
rule or regulation, or any change in the interpretation or administration
thereof by any governmental authority, central bank or comparable agency
charged with the interpretation or administration thereof, or any request or
directive regarding capital adequacy (whether or not having the force of law)
made on or after the date of this Agreement by any such authority, central bank
or comparable agency, has or would have the effect of reducing the rate of
return on capital of such Lender (or its Parent) as a consequence of such
Lender’s obligations hereunder to a level below that which such Lender (or its
Parent) could have achieved but for such adoption, change, request or directive
(taking into consideration its policies with respect to capital adequacy) by an
amount deemed by such Lender to be material, then from time to time, within 15
days after demand by such Lender (with a copy to the Administrative Agent), the
Borrower shall pay to such Lender such additional amount or amounts as will
(subject to subsection (d) of this Section) compensate such Lender (or its
Parent) for such reduction.

 

(c)                                  Each
Lender and LC Issuing Bank will promptly notify the Borrower and the
Administrative Agent of any event of which it has knowledge, occurring after
the date hereof, which will entitle such Lender or LC Issuing Bank to
compensation pursuant to this Section and will designate a different Applicable
Lending Office if such designation will avoid the need for, or reduce the
amount of, such compensation and will not, in the judgment of such Lender or LC
Issuing Bank, be otherwise disadvantageous to it.  A certificate of any Lender or LC Issuing Bank claiming
compensation under this Section and setting forth in reasonable detail the
additional amount or amounts to be paid to it hereunder and the method of
calculation thereof and shall be conclusive in the absence of manifest
error.  In determining such amount, such
Lender or LC Issuing Bank may use any reasonable averaging and attribution
methods.

 

(d)                                 No
Lender shall be entitled to claim compensation pursuant to this Section for
(i) Taxes or Other Taxes (as such terms are defined in Section 8.04)
or (ii) any increased cost or reduction incurred or accrued more than 90
days before such Lender first notifies the Borrower of the change in law or
other circumstance on which such claim is based.

 

SECTION 8.04.  Taxes.  (a) For purposes of this Section,
the following terms have the following meanings:

 

“Taxes” means any and all
present or future taxes, duties, levies, imposts, deductions, charges or
withholdings with respect to any payment by the Borrower pursuant to any
Financing Document, and all liabilities with respect thereto, excluding (i) in the case of each
Lending Party, taxes imposed on its income, and franchise or similar taxes
imposed on it, by a jurisdiction under the laws of which

 

64

 

it is organized or in which its
principal executive office is located or in which its Applicable Lending Office
is located and (ii) in the case of each Lender, any United States
withholding tax imposed on such payments but only to the extent that such
Lender is subject to United States withholding tax at the time such Lender
first becomes a party to this Agreement.

 

“Other Taxes” means any
present or future stamp or documentary taxes and any other excise or property
taxes, or similar charges or levies, which arise from any payment made pursuant
to any Financing Document, or from the execution or delivery of, or otherwise
with respect to, any Financing Document.

 

(b)                                 Any
and all payments by any Borrower to or for the account of any Lending Party
under any Financing Document shall be made without deduction for any Taxes or
Other Taxes; provided that, if
the Borrower shall be required by law to deduct any Taxes or Other Taxes from
any such payment, (i) the sum payable shall be increased as necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under this Section 8.04) such Lending Party receives an amount equal to the sum
it would have received had no such deductions been made, (ii) the Borrower
shall make such deductions, (iii) the Borrower shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance
with applicable law and (iv) the Borrower shall furnish to the
Administrative Agent, at its address referred to in Section 9.01, the original or a certified copy of
a receipt evidencing payment thereof.

 

(c)                                  The
Borrower agrees to indemnify each Lending Party for the full amount of Taxes or
Other Taxes (including, without limitation, any Taxes or Other Taxes imposed or
asserted by any jurisdiction on amounts payable under this Section 8.04) paid by such Lending Party and any
liability (including penalties, interest and expenses) arising therefrom or
with respect thereto.  This
indemnification shall be paid within 15 days after such Lending Party makes
demand therefor.

 

(d)                                 Each
Lending Party organized under the laws of a jurisdiction outside the United
States, on or prior to its execution and delivery of this Agreement in the case
of each Lending Party listed on the signature pages hereof and on or prior to
the date on which it becomes a Lending Party in the case of each other Lending
Party, and from time to time thereafter if requested in writing by the Borrower
(but only so long as such Lending Party remains lawfully able to do so), shall
provide the Borrower and the Administrative Agent with Internal Revenue Service
form W-8ECI or W-8BEN, as appropriate, or any successor form prescribed by the
Internal Revenue Service, certifying that such Lending Party is entitled to
benefits under an income tax treaty to which the United States

 

65

 

is a party which exempts such
Lending Party from United States withholding tax or reduces the rate of
withholding tax on payments of interest for the account of such Lending Party
or certifying that the income receivable pursuant to the Financing Documents is
effectively connected with the conduct of a trade or business in the United
States.

 

(e)                                  For
any period with respect to which a Lending Party has failed to provide the
Borrower and the Administrative Agent with the appropriate form pursuant to
Section 8.04(d) (unless
such failure is due to a change in treaty, law or regulation occurring after
the date on which such form originally was required to be provided), such
Lending Party shall not be entitled to indemnification under Section 8.04(b) or (c) with respect to Taxes
imposed by the United States; provided
that if a Lending Party, which is otherwise exempt from or subject to a reduced
rate of withholding tax, becomes subject to Taxes because of its failure to
deliver a form required hereunder, the Borrower shall take such steps as such
Lending Party shall reasonably request to assist such Lending Party to recover
such Taxes.

 

(f)                                    If
the Borrower is required to pay additional amounts to or for the account of any
Lender pursuant to this Section 8.04,
such Lender will change the jurisdiction of its Applicable Lending Office if,
in the judgment of such Lender, such change (i) will eliminate or reduce
any such additional payment which may thereafter accrue and (ii) is not
otherwise disadvantageous to such Lender.

 

SECTION 8.05.  Base Rate Loans Substituted
for Affected Euro-Dollar Loans.  If
(i) the obligation of any Lender to make Euro-Dollar Loans has been suspended
pursuant to Section 8.02 or
(ii) any Lender has demanded compensation under Section 8.03 or 8.04
with respect to its Euro-Dollar Loans and the Borrower shall, by at least five
Euro-Dollar Business Days’ prior notice to such Lender through the
Administrative Agent, have elected that the provisions of this Section shall
apply to such Lender, then, unless and until such Lender notifies the Borrower
that the circumstances giving rise to such suspension or demand for
compensation no longer exist, all Loans which would otherwise be made by such
Lender as (or continued as or converted into) Euro-Dollar Loans shall instead
be made as (or converted into) Base Rate Loans (on which interest and principal
shall be payable contemporaneously with the related Euro-Dollar Loans of the
other Lenders).  If such Lender notifies
the Borrower that the circumstances giving rise to such notice no longer apply,
the principal amount of each such Base Rate Loan shall be converted into a
Euro-Dollar Loan on the first day of the next succeeding Interest Period
applicable to the related Euro-Dollar Loans of the other Lenders.

 

66

 

ARTICLE 9

 

MISCELLANEOUS

 

SECTION 9.01.  Notices.  All notices, requests and other
communications to any party hereunder shall be in writing (including bank wire,
telex, facsimile transmission or similar writing) and shall be given to such
party:

 

(x)                                   in
the case of the Borrower, the Swingline Bank or the Administrative Agent, at
its address, facsimile number or telex number set forth on the signature pages
hereof,

 

(y)                                 in
the case of any Lender or Agent (other than the Administrative Agent), at its
address, facsimile number or telex number set forth in its Administrative
Questionnaire or

 

(z)                                   in
the case of any party, such other address, facsimile number or telex number as
such party may hereafter specify for the purpose by notice to the
Administrative Agent and the Borrower.

 

Each such notice, request or other communication shall be effective
(i) if given by telex, when such telex is transmitted to the telex number
referred to in this Section and the appropriate answerback is received,
(ii) if given by facsimile transmission, when transmitted to the facsimile
number referred to in this Section and confirmation of receipt is received,
(iii) if given by mail, 72 hours after such communication is deposited in
the mails with first class postage prepaid, addressed as aforesaid or
(iv) if given by any other means, when delivered at the address referred
to in this Section; provided that
notices to the Administrative Agent or an LC Issuing Bank under Article 2
or Article 8 shall not be effective until received.

 

SECTION 9.02.  No Waivers.  No failure or delay by any
Lending Party in exercising any right, power or privilege under any Financing
Document shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. 
The rights and remedies herein provided shall be cumulative and not
exclusive of any rights or remedies provided by law.

 

SECTION 9.03.  Expenses;
Indemnification.  (a) The
Borrower shall pay (i) all out-of-pocket expenses of the Administrative Agent,
including reasonable fees and disbursements of special counsel for the
Administrative Agent, in connection with the preparation and administration of
the Financing Documents, any waiver or consent thereunder or any amendment
thereof or any Default or alleged Default thereunder, (ii) all out-of-pocket
expenses of each Joint Lead Arranger (but not

 

67

 

any fees and disbursements of
its counsel) in connection with the preparation of the Financing Documents, any
waiver or consent thereunder or any amendment thereof and (iii) if an Event of
Default occurs, all out-of-pocket expenses incurred by each Lending Party,
including (without duplication) the fees and disbursements of outside counsel
and the allocated cost of inside counsel, in connection with such Event of
Default and any collection, bankruptcy, insolvency, workout or other
enforcement proceedings resulting therefrom.

 

(b)                                 The
Borrower shall indemnify each Lending Party, the Joint Lead Arrangers and their
respective Affiliates and the respective directors, officers, agents and
employees of the foregoing (each an “Indemnitee”)
and hold each Indemnitee harmless from and against any and all liabilities,
losses, damages, costs and expenses of any kind, including, without limitation,
the reasonable fees and disbursements of counsel, which may be incurred by such
Indemnitee in connection with any investigative, administrative or judicial
proceeding (whether or not such Indemnitee shall be designated a party thereto)
brought or threatened relating to or arising out of any Financing Document or
any actual or proposed use by the Borrower or any of its Subsidiaries or Equity
Affiliates of any Letters of Credit or any proceeds of the Loans; provided that no Indemnitee shall have the
right to be indemnified hereunder for such Indemnitee’s own gross negligence or
willful misconduct as determined by a court of competent jurisdiction.

 

SECTION 9.04.  Set-offs; Sharing.  (a) If (i) an Event of Default
has occurred and is continuing and (ii) the requisite Lenders have requested
the Administrative Agent to declare the Loans to be immediately due and payable
pursuant to Section 6.01, or the Loans have become immediately due and
payable without notice as provided in Section 6.01, then each Lending
Party is hereby authorized by the Borrower at any time and from time to time,
to the extent permitted by applicable law, without notice to the Borrower (any
such notice being expressly waived by the Borrower), to set off and apply all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Lending Party to or for
the account of the Borrower against any obligations of the Borrower to such
Lending Party now or hereafter existing under this Agreement, regardless of
whether any such deposit or other obligation is then due and payable or is in
the same currency or is booked or otherwise payable at the same office as the
obligation against which it is set off and regardless of whether such Lending
Party shall have made any demand for payment under this Agreement.  Each Lending Party agrees promptly to notify
the Borrower after any such set-off and application made by such Lending Party;
provided that any failure to give
such notice shall not affect the validity of such setoff and application.  The rights of the Lending Parties under this
subsection are in addition to any other rights and remedies which they may
have.

 

68

 

(b)                                 Each
Lender agrees that if it shall, by exercising any right of set-off or
counterclaim or otherwise, receive payment of a proportion of the aggregate
amount of principal and interest due with respect to the Loans and
participations in LC Reimbursement Obligations held by it which is greater than
the proportion received by any other Lender in respect of the aggregate amount
of principal and interest due with respect to the Loans and participations in
LC Reimbursement Obligations held by such other Lender, the Lender receiving
such proportionately greater payment shall purchase such participations in the
Loans and participations in LC Reimbursement Obligations held by the other
Lenders, and such other adjustments shall be made, as may be required so that
all such payments of principal and interest with respect to the Loans and
participations in LC Reimbursement Obligations held by the Lenders shall be
shared by the Lenders pro rata.

 

(c)                                  Nothing
in this Section shall impair the right of any Lender to exercise any right of
set-off or counterclaim it may have and to apply the amount subject to such
exercise to the payment of indebtedness of the Borrower other than its
indebtedness in respect of the Loans and the LC Reimbursement Obligations.

 

(d)                                 The
Borrower agrees, to the fullest extent it may effectively do so under
applicable law, that any holder of a participation in a Note or LC Reimbursement
Obligation, whether or not acquired pursuant to the foregoing arrangements, may
exercise rights of set-off or counterclaim and other rights with respect to
such participation as fully as if such holder of a participation were a direct
creditor of the Borrower in the amount of such participation.

 

SECTION 9.05.  Amendments and Waivers.  Any provision of this Agreement
or the Notes may be amended or waived if, but only if, such amendment or waiver
is in writing and is signed by the Borrower and the Required Lenders (and, if
the rights or duties of any Agent or LC Issuing Bank are affected thereby, by
such Agent or LC Issuing Bank, as the case may be); provided that no such amendment or waiver shall:

 

(i)                                     unless signed by
all the Lenders, increase or decrease any Commitment (except for a ratable
decrease in all the Commitments), postpone the date fixed for the termination
of any Commitment or, except as expressly provided in Section 2.17(g),
extend the expiry date of any Letter of Credit, reduce the principal of or rate
of interest on any Syndicated Loan or the amount of any LC Reimbursement
Obligation or any interest thereon, or postpone the Termination Date or any
date fixed for any payment of interest on any Syndicated Loan or of any LC
Reimbursement Obligation or any interest thereon;

 

69

 

(ii)                                  unless signed by the
Swingline Bank, increase the Swingline Commitment, postpone the date fixed for
the termination of the Swingline Commitment or otherwise affect any of its
rights or obligations hereunder;

 

(iii)                               unless signed by all the
Lenders entitled to receive such fees, reduce or postpone the date fixed for
any scheduled payment of fees hereunder;

 

(iv)                              unless signed by all the
Lenders, change any provision of this Section or any other provision of
this Agreement specifying which Lenders may take any action that the Lenders or
any of them are entitled to take hereunder; or

 

(v)                                 unless signed by each
Lender affected thereby, waive any condition set forth in clause  (b),
(c), (j) or (k) of Section 3.01.

 

SECTION 9.06.  Successors and Assigns.  (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns, except that the Borrower
may not assign or otherwise transfer any of its rights under the Financing
Documents without the prior written consent of all the Lenders, the LC Issuing
Banks and the Swingline Bank.

 

(b)                                 Any
Lender may at any time grant to one or more banks or other institutions (each a
“Participant”) participating
interests in its Commitment or any or all of its Loans and participations in
the Letters of Credit.  If any Lender
grants such a participating interest to a Participant, whether or not upon
notice to the Borrower and the Administrative Agent, such Lender shall remain
responsible for the performance of its obligations hereunder, and the Borrower,
the LC Issuing Banks and the Administrative Agent shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and
obligations under the Financing Documents. 
Any agreement pursuant to which any Lender may grant such a
participating interest shall provide that such Lender shall retain the sole
right and responsibility to enforce the obligations of the Borrower and the LC
Issuing Banks under the Financing Documents including, without limitation, the
right to approve any amendment, modification or waiver of any provision
thereof; provided that such
participation agreement may provide that such Lender will not agree to any
modification, amendment or waiver of this Agreement described in clause 
(i) or (iii) of Section 9.05
without the consent of the Participant. 
An assignment or other transfer which is not permitted by subsection (c)
or (d) below shall be given effect for purposes of this Agreement only to
the extent of a participating interest granted in accordance with this
subsection (b).

 

70

 

(c)                                  Any
Lender may at any time after the Closing Date assign to an Eligible Assignee
all, or a pro rata part of all, of its rights and obligations under the
Financing Documents, and such Eligible Assignee shall assume such rights and
obligations, pursuant to an Assignment and Assumption Agreement substantially
in the form of Exhibit J hereto signed by such Eligible Assignee and such
transferor Lender; provided that:

 

(A)                              such assignment may, but
need not, include rights of the transferor Lender in respect of outstanding
Money Market Loans;

 

(B)                                if such Eligible
Assignee is not an Affiliate of the transferor Lender and was not a Lender
immediately prior to such assignment, then, unless the Administrative Agent
and, so long as no Event of Default has occurred and is continuing, the
Borrower otherwise agree, the portion of the transferor Lender’s Commitment
assigned to such Eligible Assignee shall be at least $5,000,000; and

 

(C)                                unless the
Administrative Agent and, so long as no Event of Default has occurred and is
continuing, the Borrower otherwise agree or the transferor Lender assigns its
entire Commitment to such Eligible Assignee, the transferor Lender and/or its
Affiliates shall retain, in the aggregate, a Commitment at least equal to
$5,000,000.

 

When such Assignment and Assumption Agreement has been signed and
delivered to the Administrative Agent and such Eligible Assignee has paid to
such transferor Lender an amount equal to the purchase price agreed between
such transferor Lender and such Eligible Assignee, such Eligible Assignee shall
be a Lender party to this Agreement and shall have all the rights and
obligations of a Lender to the extent set forth in such Assignment and
Assumption Agreement, and the transferor Lender shall be released from its
obligations hereunder to a corresponding extent, and no further consent or
action by any party shall be required. 
Upon the consummation of any assignment pursuant to this
subsection (c), the transferor Lender, the Administrative Agent and the
Borrower shall make appropriate arrangements so that, if required, a new Note
is issued to the Eligible Assignee.  In
connection with any such assignment, either the transferor Lender or the
Eligible Assignee shall pay to the Administrative Agent an administrative fee
for processing such assignment in the amount of $3,500.  If the Eligible Assignee is not incorporated
under the laws of the United States or a State thereof, it shall deliver to the
Borrower and the Administrative Agent certification as to exemption from
deduction or withholding of any United States federal income taxes in
accordance with Section 8.04(d).

 

71

 

(d)                                 Any
Lender may at any time assign all or any portion of its rights under the
Financing Documents to a Federal Reserve Bank. 
No such assignment shall release the transferor Lender from its
obligations thereunder.

 

(e)                                  No
Eligible Assignee, Participant or other transferee of any Lender’s rights shall
be entitled to receive any greater payment under or by reason of Section 8.03 or 8.04
than such Lender would have been entitled to receive with respect to the rights
transferred, unless such transfer is made with the Borrower’s prior written
consent or by reason of the provisions of Section 8.02, 8.03
or 8.04 requiring such Lender to
designate a different Applicable Lending Office under certain circumstances or,
in the case of an Eligible Assignee, at a time when the circumstances giving
rise to such greater payment did not exist. 
Subject to the foregoing limitation, any Lender claiming compensation or
indemnification pursuant to Section 8.03
or 8.04 may include in its claim
similar compensation or indemnification for any Participant having a
participating interest in such Lender’s rights.

 

SECTION 9.07.  No Reliance on Margin Stock
as Collateral.  Each of the
Lenders represents to the Administrative Agent and each of the other Lenders
that it in good faith is not relying upon any “margin stock” (as defined in Regulation U) as collateral in
the extension or maintenance of the credit provided for in this Agreement.

 

SECTION 9.08.  Confidentiality.  Each Lending Party agrees to keep
any information delivered or made available by the Borrower to it confidential
from anyone other than persons employed or retained by such Lending Party who
are, or are expected to be, engaged in evaluating, approving, structuring or
administering the credit facility provided herein; provided that nothing herein shall prevent any Lending Party
from disclosing such information (a) to any other Lending Party,
(b) to any other Person if reasonably incidental to the administration of
the credit facility provided herein, (c) upon the order of any court or
administrative agency, (d) upon the request or demand of any regulatory
agency or authority, (e) which had been publicly disclosed other than as a
result of a disclosure by any Lending Party prohibited by this Agreement,
(f) in connection with any litigation to which such Lending Party or any
of its Affiliates may be a party, (g) to the extent necessary in connection
with the exercise of any remedy hereunder, (h) to such Lending Party’s
legal counsel and independent auditors, (i) to any Affiliate of such
Lending Party, solely in connection with this Agreement or any other
transaction or proposed transaction between such Lending Party and/or its
Affiliates and the Borrower and/or its Affiliates, and (j) subject to
provisions substantially similar to those contained in this Section, to any
actual or proposed Participant or Eligible Assignee.

 

72

 

SECTION 9.09.  WAIVER OF JURY TRIAL.  THE BORROWER AND EACH LENDING
PARTY HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THE FINANCING DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED THEREBY.

 

SECTION 9.10.  GOVERNING LAW; SUBMISSION TO
JURISDICTION.  EACH OF THE
FINANCING DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.  THE
BORROWER HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE
COURT SITTING IN NEW YORK CITY FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING
OUT OF OR RELATING TO THE FINANCING DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
THEREBY.  THE BORROWER IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH
PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

SECTION 9.11.  Counterparts;
Integration.  This Agreement
may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were
upon the same instrument.  This
Agreement constitutes the entire agreement and understanding among the parties
hereto and supersedes any and all prior agreements and understandings, oral or
written, relating to the subject matter hereof.

 

73

 

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

 

	
   

  	
  TENET HEALTHCARE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen D. Farber

  	
   

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Tenet Healthcare Corporation

  
	
   

  	
  3820 State Street

  
	
   

  	
  Santa Barbara, CA 93105

  
	
   

  	
  Attention:  Treasurer

  
	
   

  	
  (with a copy to General Counsel)

  
	
   

  	
  Telephone: (805) 563-7001

  
	
   

  	
  Facsimile:  (805) 563-6943

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, as Administrative

  Agent and as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Laura S. Cumming

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  c/o JPMorgan Chase

  
	
   

  	
  1111 Fannin, 10th Floor

  
	
   

  	
  Houston, Texas 77002

  
	
   

  	
  ABA 021000021

  
	
   

  	
  Attention: Jennifer Anyigbo (Account Manager)

  
	
   

  	
  Telephone: (713) 750-2110

  
	
   

  	
  Facsimile: (713) 750-2782

  

 

74

 

	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin Wagley

  	
   

  
	
   

  	
   

  	
  Title: Principal

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NOVA SCOTIA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Carolyn A. Calloway

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUNTRUST BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Brooks Hubbard

  	
   

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FLEET NATIONAL BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan B. Gardner

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rebecca K. Levine

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITICORP USA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter C. Bickford

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  

 

75

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jay Chall

  	
   

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Lally

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUMITOMO MITSUI BANKING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Al Galluzzo

  	
   

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UBS LOAN FINANCE LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas J. Donnelly

  	
   

  
	
   

  	
   

  	
  Title: Executive Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wilfred V. Saint

  	
   

  
	
   

  	
   

  	
  Title: Associate Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UFJ BANK LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Toshiko Boyd

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  

 

76

 

	
   

  	
  MERRILL LYNCH CAPITAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael E. O’Brien

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MIZUHO CORPORATE BANK, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Greg Botshon

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT
  LYONNAIS NEW YORK BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Charles Heidsieck

  	
   

  
	
   

  	
   

  	
  Title: Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Constance D. Maher

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeanette A. Griffin

  	
   

  
	
   

  	
   

  	
  Title: Director

  

 

77

 

	
   

  	
  KBC BANK N.V.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Snauffer

  	
   

  
	
   

  	
   

  	
  Title: First Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Raymond F. Murray

  	
   

  
	
   

  	
   

  	
  Title: First Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christian E. Stein III

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BNP PARIBAS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis Zinkand

  	
   

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PJ de Filippis

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HUA NAN COMMERCIAL BANK, LTD, NEW

  YORK AGENCY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeng-Fang Geeng

  	
   

  
	
   

  	
   

  	
  Title: General Manager

  

 

78

 

	
   

  	
  NATIONAL CITY BANK OF KENTUCKY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Erica Dowd

  	
   

  
	
   

  	
   

  	
  Title: Banking Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SOUTHTRUST BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James A. Barnes

  	
   

  
	
   

  	
   

  	
  Title: Group Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PB CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tyler J. McCarthy

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chris Ruzzi

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALLIED IRISH BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Anthony O’Reilly

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Hilary Patterson

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  

 

79

 

	
   

  	
  CHINATRUST COMMERCIAL BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Teng

  	
   

  
	
   

  	
   

  	
  Title:
  Executive Vice President and

  General Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMERICA BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Colleen M. Murphy

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMMERCEBANK N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward Tietjen

  	
   

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK LEUMI USA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joung Hee Hong

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HIBERNIA NATIONAL BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kay St. John

  	
   

  
	
   

  	
   

  	
  Title: Senior Vice President

  
					

 

80

 

	
   

  	
  MORGAN STANLEY SENIOR FUNDING INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jaap L. Tonckens

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE GOVERNOR & COMPANY OF THE BANK

  OF IRELAND

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joe Shine

  	
   

  
	
   

  	
   

  	
  Title: Assistant Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ G. Hammon

  	
   

  
	
   

  	
   

  	
  Title: Authorised Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MALAYAN BANKING BERHAD

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wan Fadzmi Othman

  	
   

  
	
   

  	
   

  	
  Title: General Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CANPARTNERS INVESTMENTS IV, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R.C.B. Evensen

  	
   

  
	
   

  	
   

  	
  Title: Managing Partner

  

 

81

 

	
   

  	
  GOLDENTREE HIGH YIELD II

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GOLDENTREE HIGH YIELD I

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

82

 

PRICING SCHEDULE

 

The “Facility Fee Rate”
and “Euro-Dollar Margin” for any
day are the respective rates per annum set forth below in the applicable row
under the column corresponding to the Pricing Level that applies on such day:

 

	
  Pricing Level

  	
   

  	
  Level I

  	
   

  	
  Level II

  	
   

  	
  Level III

  	
   

  	
  Level IV

  	
   

  	
  Level V

  	
   

  	
  Level VI

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Fee Rate:

  	
   

  	
  0.500

  	
  %

  	
  0.500

  	
  %

  	
  0.500

  	
  %

  	
  0.600

  	
  %

  	
  0.700

  	
  %

  	
  0.800

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Euro-Dollar Margin:

  	
   

  	
  1.000

  	
  %

  	
  1.000

  	
  %

  	
  1.000

  	
  %

  	
  1.500

  	
  %

  	
  2.000

  	
  %

  	
  2.500

  	
  %

  

 

For purposes of this Pricing Schedule, the following terms have the
following meanings:

 

“Level I Pricing” applies
during any Rate Period if, at the end of the Preceding Fiscal Quarter, the
Leverage Ratio was less than 1.75 to 1.

 

“Level II Pricing” applies
during any Rate Period if no higher Pricing Level applies and, at the end of
the Preceding Fiscal Quarter, the Leverage Ratio was equal to or greater than
1.75 to 1.

 

“Level III Pricing”
applies during any Rate Period if no higher Pricing Level applies and, at the
end of the Preceding Fiscal Quarter, the Leverage Ratio was equal to or greater
than 2.00 to 1.

 

“Level IV Pricing” applies
during any Rate Period if no higher Pricing Level applies and, at the end of
the Preceding Fiscal Quarter, the Leverage Ratio was equal to or greater than
2.50 to 1.

 

“Level V Pricing” applies
during any Rate Period if no higher Pricing Level applies and, at the end of
the Preceding Fiscal Quarter, the Leverage Ratio was equal to or greater than
3.00 to 1.

 

“Level VI Pricing” applies
during any Rate Period if, at the end of the Preceding Fiscal Quarter, the
Leverage Ratio was equal to or greater than 3.25 to 1.

 

“Preceding Fiscal Quarter”
means, with respect to any Rate Period, the most recent Fiscal Quarter ended
before such Rate Period begins.

 

“Pricing Level” refers to
the determination of which of Level I Pricing, Level II Pricing, Level III
Pricing, Level IV Pricing, Level V Pricing or Level VI

 

1

 

Pricing applies on any day.
Pricing Levels are referred to in ascending order (e.g., Level II Pricing is a
higher Pricing Level than Level I Pricing).

 

“Rate Period” means any
period from and including the 46th day of a Fiscal Quarter to and including the
45th day of the immediately succeeding Fiscal Quarter.

 

2

 

COMMITMENT SCHEDULE

 

	
  Lender

  	
   

  	
  Commitment

  
	
  JPMorgan Chase

  	
   

  	
  $

  	
  120,000,000

  
	
  The Bank of Nova Scotia.

  	
   

  	
  $

  	
  90,000,000

  
	
  SunTrust Bank

  	
   

  	
  $

  	
  90,000,000

  
	
  Fleet National Bank

  	
   

  	
  $

  	
  80,200,000

  
	
  The Bank of New York.

  	
   

  	
  $

  	
  76,800,000

  
	
  Bank of America

  	
   

  	
  $

  	
  76,000,000

  
	
  Citicorp USA, Inc

  	
   

  	
  $

  	
  74,000,000

  
	
  Credit Suisse First Boston

  	
   

  	
  $

  	
  64,200,000

  
	
  Sumitomo Mitsui Banking Corporation

  	
   

  	
  $

  	
  48,000,000

  
	
  UBS AG, Stamford Branch

  	
   

  	
  $

  	
  47,400,000

  
	
  UFJ Bank Limited.

  	
   

  	
  $

  	
  34,000,000

  
	
  Merrill Lynch Capital Corporation

  	
   

  	
  $

  	
  33,000,000

  
	
  Mizuho Corporate Bank Limited.

  	
   

  	
  $

  	
  32,200,000

  
	
  Credit Lyonnais New York Branch

  	
   

  	
  $

  	
  32,000,000

  
	
  PNC Bank

  	
   

  	
  $

  	
  30,600,000

  
	
  KBC Bank N.V.

  	
   

  	
  $

  	
  26,000,000

  
	
  US Bank N.A.

  	
   

  	
  $

  	
  24,400,000

  
	
  BNP Paribas

  	
   

  	
  $

  	
  22,600,000

  
	
  National City Bank of Kentucky

  	
   

  	
  $

  	
  20,000,000

  
	
  Hua Nan Commercial Bank, Ltd. New York
  Agency

  	
   

  	
  $

  	
  20,000,000

  
	
  SouthTrust Bank

  	
   

  	
  $

  	
  18,000,000

  
	
  PB Capital Corporation

  	
   

  	
  $

  	
  16,000,000

  
	
  Morgan Stanley Senior Funding Inc.

  	
   

  	
  $

  	
  16,000,000

  
	
  Canpartners Investments IV, LLC.

  	
   

  	
  $

  	
  14,200,000

  
	
  Wachovia Bank.

  	
   

  	
  $

  	
  6,000,000

  
	
  Commercebank, N.A.

  	
   

  	
  $

  	
  12,000,000

  
	
  Comerica Bank N.A.

  	
   

  	
  $

  	
  12,000,000

  
	
  Chinatrust Commercial Bank

  	
   

  	
  $

  	
  12,000,000

  
	
  Allied Irish Bank

  	
   

  	
  $

  	
  12,000,000

  
	
  Hibernia National Bank.

  	
   

  	
  $

  	
  9,000,000

  
	
  Bank Leumi USA

  	
   

  	
  $

  	
  9,000,000

  
	
  The Governor & Company of The Bank of
  Ireland

  	
   

  	
  $

  	
  6,000,000

  
	
  Goldentree High Yield II

  	
   

  	
  $

  	
  5,200,000

  
	
  Goldentree High Yield I

  	
   

  	
  $

  	
  5,200,000

  
	
  Malayan Banking Berhad.

  	
   

  	
  $

  	
  4,000,000

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  1,200,000,000

  

 

1

 

SCHEDULE 3.04

 

 

Existing Letters of Credit

 

1.                Bank of America, N.A. Letter of Credit
number 3024264, dated as of March 28, 2000, issued in favor of Traveler’s
Indemnity Company (Aetna Casualty & Surety).

 

2.                Bank of America, N.A. Letter of Credit
number 3024288, dated as of March 28, 2000, issued in favor of Bank of
Bermuda as Trustee for HFIC.

 

3.                Bank of America, N.A. Letter of Credit
number 3025581, dated as of May 23, 2000, issued in favor of I.R.S. Assistant
Commissioner (International).

 

4.                Bank of America, N.A. Letter of Credit
number 3026368, dated as of June 1, 2000, issued in favor of
Transportation Insurance Co. (CNA).

 

5.                Bank of America, N.A. Letter of Credit
number 3026500, dated as of June 7, 2000, issued in favor of Safety
National Casualty.

 

6.                Bank of America, N.A. Letter of Credit
number 3026948, dated as of July 5, 2000, issued in favor of National
Union Fire Insurance Co. (AIG).

 

7.                Bank of America, N.A. Letter of Credit
number 3026922, dated as of July 19, 2000, issued in favor of Reliance
National Indemnity Company.

 

8.                Bank of America, N.A. Letter of Credit
number 3026551, dated as of July 25, 2000, issued in favor of National
Union Fire Insurance Co. (AIG).

 

9.                Bank of America, N.A. Letter of Credit
number 3027547, dated as of July 25, 2000, issued in favor of Health Care
Property Investors, Inc. (formerly AHE of Irvine).

 

10.          Bank of America, N.A. Letter of Credit number
3027925, dated as of August 3, 2000, issued in favor of Rangers Insurance
Co.

 

11.          Bank of America, N.A. Letter of Credit number
3027926, dated as of August 4, 2000, issued in favor of Fremont Indemnity
Company.

 

12.          Bank of America, N.A. Letter of Credit number
3026550, dated as of September 14, 2000, issued in favor of Ace American
Insurance Company.

 

13.          The Bank of New York Letter of Credit number
S00031638, dated as of December 6, 1994, issued in favor of The Chase
Manhattan Bank - Texas (formerly known as Texas Commerce Bank National
Association), Trustee.

 

2

 

14.          The Bank of New York Letter of Credit number
S00031639, dated as of December 6, 1994, issued in favor of The Chase
Manhattan Bank - Texas (formerly known as Texas Commerce Bank National
Association), Trustee.

 

3

 

SCHEDULE 4.05

 

Pending Litigation

 

The Borrower hereby incorporates by reference the disclosure concerning
the legal proceedings referred to in its annual report on Form 10-K for its
fiscal year ended May 31, 2000 and its quarterly reports on Form 10-Q for
its fiscal quarters ended August 31, 2000 and November 30, 2000.

 

4.05-1

 

EXHIBIT A

 

NOTE

 

New York, New York

,
200  

 

For value received, TENET HEALTHCARE CORPORATION, a Nevada corporation
(the “Borrower”), promises to pay
to the order of
                       
(the “Lender”), for the account of
its Applicable Lending Office, the unpaid principal amount of each Loan made by
the Lender to the Borrower pursuant to the Credit Agreement referred to below
on the maturity date provided for in the Credit Agreement.  The Borrower promises to pay interest on the
unpaid principal amount of each such Loan on the dates and at the rate or rates
provided for in the Credit Agreement. 
All such payments of principal and interest shall be made in lawful
money of the United States in Federal or other immediately available funds at
the office of Morgan Guaranty Trust Company of New York, 60 Wall Street,
New York, New York.

 

All Loans made by the Lender, the respective dates and amounts thereof
and all payments of the principal with respect thereto shall be recorded by the
Lender and, if the Lender so elects in connection with any transfer or
enforcement hereof, appropriate notations to evidence the foregoing information
with respect to each such Loan then outstanding may be endorsed by the Lender
on the schedule attached hereto, or on a continuation of such
schedule attached to and made a part hereof; provided that the failure of
the Lender to make any such recordation or endorsement shall not affect the
obligations of the Borrower hereunder or under any other Financing Document.

 

This note is one of the Notes referred to in the Five-Year Credit
Agreement dated as of  March 1,
2001 among the Borrower and the Lenders, Managing Agents, Co-Agents, Swingline
Bank and Agents party thereto (as the same may be amended from time to time,
the “Credit Agreement”).  Terms defined in the Credit Agreement are
used herein with the same meanings. 
Reference is made to the Credit Agreement for provisions for the
prepayment hereof and the acceleration of the maturity hereof.

 

	
   

  	
  TENET HEALTHCARE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

A-1

 

LOANS AND PAYMENTS OF PRINCIPAL

 

	
  Date

  	
   

  	
  Amount of

  Loan

  	
   

  	
  Type of

  Loan

  	
   

  	
  Amount of

  Principal

  Repaid

  	
   

  	
  Notation

  Made by

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-2

 

EXHIBIT B

 

Form of Money Market Quote Request

 

 

[Date]

 

To:                              Morgan Guaranty Trust
Company of New York

(the “Administrative Agent”)

 

From:                  Tenet Healthcare Corporation

 

Re:                               Five-Year Credit
Agreement dated as of March 1, 2001 (the “Credit Agreement”) among the Borrower and the Lenders,
Managing Agents, Co-Agents, Swingline Bank and Agents party thereto

 

We hereby give notice pursuant to Section 2.03 of the Credit
Agreement that we request Money Market Quotes for the following proposed Money
Market Borrowing(s):

 

Date of Borrowing:

 

	
  Principal
  Amount(1)

  	
   

  	
  Interest Period(2)

  
	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

Such Money Market Quotes should offer a Money Market [Margin] [Absolute
Rate]. [The applicable base rate is the London Interbank Offered Rate.]

 

(1)
Amount must be $10,000,000 or a larger multiple of $1,000,000.

 

(2)
Not less than one month (LIBOR Auction) or not less than 7 days (Absolute Rate
Auction), subject to the provisions of the definition of Interest Period.

 

B-1

 

Terms used herein have the meanings assigned to them in the Credit
Agreement.

 

	
   

  	
  Tenet Healthcare Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

B-2

 

EXHIBIT C

 

 

Form of Invitation for Money Market Quotes

 

 

To:                              [Name of Lender]

 

Re:                               Invitation for Money
Market Quotes to Tenet Healthcare Corporation (the “Borrower”)

 

Pursuant to Section 2.03 of the Five-Year Credit Agreement dated
as of March 1, 2001 among the Borrower and the Lenders, Managing Agents,
Co-Agents, Swingline Bank and Agents party thereto, we, as Administrative
Agent, are pleased on behalf of the Borrower to invite you to submit Money
Market Quotes to the Borrower for the following proposed Money Market
Borrowing(s):

 

Date of Borrowing:

 

	
  Principal
  Amount

  	
   

  	
  Interest Period

  
	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

Such Money Market Quotes should offer a Money Market [Margin] [Absolute
Rate].  [The applicable base rate is the
London Interbank Offered Rate.]

 

Please respond to this invitation by no later than [2:00 P.M.] [10:00
A.M.] (New York City time) on [date].

 

	
   

  	
  MORGAN
  GUARANTY TRUST

  COMPANY OF NEW YORK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

C-1

 

EXHIBIT D

 

 

Form of Money Market Quote

 

To:                              Morgan Guaranty Trust
Company of New York, as Administrative Agent

 

Re:                               Money Market Quote to
Tenet Healthcare Corporation (the “Borrower”)

 

In response to your invitation on behalf of the Borrower dated
                          ,
200   , we hereby make the following Money Market Quote on the
following terms:

 

1.                                       Quoting
Lender:

 

2.                                       Person
to contact at Quoting Lender:

 

3.                                       Date
of
Borrowing:                                 (3)

 

4.                                       We
hereby offer to make Money Market Loan(s) in the following principal amounts,
for the following Interest Periods and at the following rates:

 

	
  Principal Amount(4)

  	
   

  	
  Interest
  Period(5)

  	
   

  	
  Money
  Market

  Margin(6)

  	
   

  	
  Absolute
  Rate (7)

  
	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(3)
As specified in the related Invitation.

 

(4)
Principal amount bid for each Interest Period may not exceed principal amount
requested.  Specify aggregate limitation
if the sum of the individual offers exceeds the amount the bank is willing to
lend.  Bids must be made for $10,000,000
or a larger multiple of $1,000,000.

 

(5)
Not less than one month or not less than 7 days, as specified in the related
Invitation.  No more than five bids are
permitted for each Interest Period.

 

(6)
Margin over or under the London Interbank Offered Rate determined for the
applicable Interest Period.  Specify
percentage (to the nearest 1/10,000 of 1%) and specify whether “PLUS” or
“MINUS”.

 

(7)
Specify rate of interest per annum (to the nearest 1/10,000th of 1%).

 

D-1

 

[Provided, that the aggregate principal amount of Money Market Loans
for which the above offers may be accepted shall not exceed
$                  .]

 

We understand and agree that the offer(s) set forth above, subject to
the satisfaction of the applicable conditions set forth in the Five-Year Credit
Agreement dated as of March 1, 2001 among the Borrower and the Lenders,
Managing Agents, Co-Agents, Swingline Bank and Agents party thereto,
irrevocably obligates us to make the Money Market Loan(s) for which any
offer(s) are accepted, in whole or in part.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF LENDER]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  
				

 

D-2

 

EXHIBIT E

 

 

SWINGLINE NOTE

 

 

	
   

  	
  New York, New York

  
	
   

  	
  , 2001

  

 

For value received, TENET HEALTHCARE CORPORATION, a Nevada corporation
(the “Borrower”), promises to pay
to the order of MORGAN GUARANTY TRUST COMPANY OF NEW YORK (the “Swingline Bank”) the unpaid principal
amount of each Swingline Loan made by the Swingline Bank to the Borrower
pursuant to the Credit Agreement referred to below on the maturity date
provided for in the Credit Agreement. 
The Borrower promises to pay interest on the unpaid principal amount of
each such Swingline Loan on the dates and at the rate or rates provided for in
the Credit Agreement.  All such payments
of principal and interest shall be made in lawful money of the United States in
Federal or other immediately available funds at the office of Morgan Guaranty
Trust Company of New York, 60 Wall Street, New York, New York.

 

All Swingline Loans made by the Swingline Bank and all repayments of
the principal thereof shall be recorded by the Swingline Bank and, if the
Swingline Bank so elects in connection with any transfer or enforcement hereof,
appropriate notations to evidence the foregoing information with respect to
each such Swingline Loan then outstanding may be endorsed by the Swingline Bank
on the schedule attached hereto, or on a continuation of such
schedule attached to and made a part hereof; provided that the failure of
the Swingline Bank to make any such recordation or endorsement shall not affect
the obligations of the Borrower hereunder or under any other Financing
Document.

 

This note is the Swingline Note referred to in the Five-Year Credit
Agreement dated as of March 1, 2001 among the Borrower and the Lenders,
Managing Agents, Co-Agents, Swingline Bank and Agents party thereto (as the
same may be amended from time to time, the “Credit
Agreement”).  Terms defined
in the Credit Agreement are used herein with the same meanings.

 

E-1

 

Reference is made to the Credit
Agreement for provisions for the prepayment hereof and the acceleration of the
maturity hereof.

 

	
   

  	
  TENET HEALTHCARE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

E-2

 

LOANS AND PAYMENTS OF PRINCIPAL

 

	
  Date

  	
   

  	
  Amount of

  Loan

  	
   

  	
  Amount of

  Principal

  Repaid

  	
   

  	
  Notation Made

  by

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

E-3

 

EXHIBIT F

 

 

SENIOR

OFFICER’S

CLOSING CERTIFICATE

 

 

I, David L. Dennis, Chief Financial Officer of Tenet Healthcare
Corporation, a Nevada corporation (the “Borrower”),
in connection with (i) the closing held today (the “Closing”) under the $1,500,000,000 Five-Year Credit Agreement
dated as of March 1, 2001 (the “Borrower’s
Credit Agreement”) among the Borrower and the Lenders, Managing
Agents, Co-Agents, Swingline Bank and Agents party thereto, and (ii) the
borrowing today (the “First Borrowing”)
by the Borrower thereunder, DO HEREBY CERTIFY that:

 

1.                                       The
representations and warranties made by the Borrower in the Borrower’s Credit
Agreement are true on and as of the date hereof.

 

2.                                       Immediately
before and after the First Borrowing under the Borrower’s Credit Agreement, no
Default will have occurred and be continuing.

 

3.                                       The
Borrower has made available, or has irrevocably instructed the Administrative
Agent to make available from the proceeds of the First Borrowing, to Morgan
Guaranty Trust Company of New York, as Agent under the Borrower’s Existing
Credit Agreement, funds sufficient to pay in full the principal of all loans
outstanding under the Borrower’s Existing Credit Agreement on the date hereof
and all interest and fees accrued thereunder to but excluding the date hereof.

 

4.                                       The
officer who executed the Borrower’s Credit Agreement on behalf of the Borrower
was authorized by the Borrower’s board of directors to, and did, approve of the
terms of the Borrower’s Credit Agreement.

 

Terms used herein and not defined herein have the meanings assigned to
them in the Borrower’s Credit Agreement.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:  David L. Dennis

  
	
   

  	
   

  	
  Title:    Chief Financial
  Officer

  
	
  [Closing Date]

  	
   

  	
   

  

 

F-1

 

EXHIBIT G

 

 

OPINION OF

GIBSON, DUNN & CRUTCHER LLP

SPECIAL COUNSEL TO THE BORROWER

 

 

[Closing Date]

 

 

To:                              The Lenders, Managing
Agents,

Co-Agents, Swingline Bank

and Agents Party to the Credit

Agreement referred to herein

 

Re:                               Five-Year Credit
Agreement dated as of March 1, 2001 among Tenet Healthcare Corporation and
the Lenders, Managing Agents, Co-Agents, Swingline Bank and Agents party
thereto

 

Ladies and Gentlemen:

 

We have acted as special counsel to Tenet Healthcare Corporation, a
Nevada corporation (the “Borrower”),
in connection with the Five-Year Credit Agreement dated as of March 1,
2001 (the “Credit Agreement”)
among the Borrower and the Lenders, Managing Agents, Co-Agents, Swingline Bank
and Agents party thereto.  Terms defined
in the Credit Agreement and not otherwise defined herein are used herein as
therein defined.

 

This opinion is delivered pursuant to Section 3.01(e) of the
Credit Agreement.

 

In rendering this opinion, we have examined originals or copies
certified or otherwise identified to our satisfaction as being true copies of
the following documents and instruments:

 

(a)                                  the Credit Agreement,
including the Exhibits and Schedules thereto;

 

(b)                                 the Notes;

 

(c)                                  the Swingline Note;

 

G-1

 

(d)                                 a certificate of even
date herewith of the corporate secretary of the Borrower as to resolutions,
incumbency of certain officers and the form of articles of incorporation and
by-laws of the Borrower in effect on the date hereof;

 

(e)                                  a certificate of even
date herewith executed by an officer of the Borrower setting forth or
certifying certain factual matters; and

 

(f)                                    a certificate of
recent date of the Secretary of State of Nevada as to the legal existence of the
Borrower in good standing under the laws of Nevada.

 

The documents referred to in Items (a) through (c) are sometimes
referred to herein collectively as the “Financing
Documents”.

 

We have, with your permission, assumed, without independent
investigation or inquiry with respect to any such matter, that:

 

(a)                                  The
Borrower is a validly existing corporation in good standing under the laws of
the State of Nevada.  The Borrower has
requisite corporate power and authority to own and operate its properties, to conduct
its business in the manner in which it presently is conducted, and to execute,
deliver and perform its obligations under each of the Financing Documents.

 

(b)                                 Each
of the Financing Documents has been duly authorized by all necessary corporate
action on the part of the Borrower. 
Each of the Financing Documents has been duly executed and delivered on
behalf of the Borrower.

 

(c)                                  Each
Lender and the Administrative Agent each has all requisite power and authority
to execute, deliver and perform its obligations under the Credit Agreement; the
execution and delivery of the Credit Agreement and performance of such
obligations have been duly authorized by all necessary action on the part of
such Lender and the Administrative Agent; and the Credit Agreement is the
legal, valid and binding obligation of such Lender or the Administrative Agent,
enforceable against it in accordance with its terms.

 

(d)                                 The
execution and delivery of the Credit Agreement by each Lender and the
Administrative Agent and performance by each of them of their respective
obligations thereunder comply with all laws and regulations that are applicable
to such Lender or the Administrative Agent or the transactions contemplated by
the Credit Agreement because of the nature of their respective businesses
(provided that the assumption stated in this subparagraph (d) does not relate
to any matter as to which we expressly state our opinion herein).

 

G-2

 

(e)                                  The
signatures on all documents examined by us are genuine, and all individuals
executing such documents were thereunto duly authorized.

 

(f)                                    The
documents submitted to us as originals are authentic and the documents
submitted to us as certified or reproduction copies conform to the originals.

 

With respect to questions of fact material to the opinions expressed
below, we have, with your consent, relied upon certificates of public officials
and officers of the Borrower, in each case without having independently
verified the accuracy or completeness thereof.

 

With respect to any opinion herein in regard to the existence or
absence of facts that is stated to be to our actual knowledge, such statement
means that, during the course of our representation of the Borrower, no
information has come to the attention of the lawyers in our Firm participating
in such representation that has given them actual knowledge of facts contrary
to the existence or absence of the facts indicated.  No inference as to our knowledge of the existence or absence of
such facts should be drawn from our representation of the Borrower.

 

Based upon the foregoing, and subject to the qualifications,
exceptions, limitations and assumptions hereinafter set forth, we are of the
opinion that:

 

(1)                                  Each
of the Financing Documents constitutes the legal, valid and binding obligation
of the Borrower and is enforceable against the Borrower in accordance with its
terms.

 

(2)                                  No
consent, approval or authorization of, and no registration, declaration or
filing with any administrative, governmental or other public authority is
required under the laws of the United States of America or the State of New
York which, in our experience, are generally applicable to transactions of the
type contemplated by the Credit Agreement, or under the Nevada General
Corporation Law, to be obtained or made in connection with the execution,
delivery and performance by the Borrower, or for the validity or enforceability
against the Borrower, of any of the Financing Documents.

 

(3)                                  Neither
the execution and delivery of the Financing Documents and the performance by
the Borrower of its obligations thereunder nor the consummation of the
transactions contemplated thereby constitutes or will constitute a violation of
any laws of the United States of America or the State of New York which, in our
experience, are generally applicable to transactions of the type contemplated
by the Credit Agreement, or under the Nevada General

 

G-3

 

Corporation Law or the
California Corporations Code, or, to our actual knowledge, of any order of any
court or governmental authority that is applicable to the Borrower.

 

(4)                                  The
Borrower is neither an “investment company” nor a Person directly or indirectly
“controlled” by or “acting on behalf of” an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.  The Borrower is neither a “holding company”,
nor an “affiliate” of a “holding company” or a “subsidiary company” of a
“holding company”, as such terms are defined in the Public Utility Holding
Company Act of 1935, as amended.

 

(5)                                  Neither
the making of the Loans on the Closing Date pursuant to, nor the application of
the proceeds of the Loans in accordance with, the Credit Agreement will violate
Regulation U or X promulgated by the Board of Governors of the Federal Reserve
System.

 

Each of the opinions set forth above is subject to the following
exceptions, qualifications, limitations and assumptions:

 

(a)                                  Our
opinions are subject to the effect of bankruptcy, insolvency, reorganization,
moratorium, arrangement or other similar laws affecting enforcement of
creditors’ rights generally, including, without limitation, the effect of
statutory or other laws regarding fraudulent conveyances or transfers,
preferential transfers, and of laws affecting distributions by corporations to
stockholders.

 

(b)                                 Our
opinions are subject to the application of general principles of equity,
whether considered in a case or proceeding at law or in equity, including,
without limitation, concepts of materiality, reasonableness, good faith and
fair dealing.

 

(c)                                  Our
opinions are subject to the qualifications that indemnification provisions in
any of the Financing Documents may be unenforceable to the extent that such
indemnification may be held to be in violation of or against public policy.

 

This opinion is limited to the effect of (i) the laws of the United
States of America and the State of New York, (ii) for purposes only of our
opinion expressed in Paragraph 3 herein, the California Corporations Code, and
(iii) to the limited extent set forth below, the General Corporation Law of the
State of Nevada.  Although we are not
admitted to practice in the State of Nevada, we are generally familiar with the
General Corporation Law of the State of Nevada and

 

G-4

 

have made such inquiries as we
consider necessary to render our opinions expressed in Paragraphs 2 and 3
hereof.  This opinion relates to the
present state of the laws referred to herein and, in rendering this opinion, we
assume no obligation to revise or supplement this opinion should the present
laws, or the interpretation thereof, be changed.

 

This opinion is rendered to the Lenders, the Managing Agents, the
Co-Agents, the Swingline Bank and the Agents as of the date hereof in
connection with the Credit Agreement, and may not be relied upon by any other
person (except an LC Issuing Bank) or by them in any other context.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Gibson, Dunn & Crutcher LLP

  

 

G-5

 

EXHIBIT H

 

 

OPINION OF

CHRISTI R. SULZBACH

GENERAL COUNSEL FOR THE BORROWER

 

 

[Closing Date]

 

 

To:                              The Lenders, Managing
Agents,

Co-Agents, Swingline Bank

and Agents Party to the Credit

Agreement referred to herein

 

Ladies and Gentlemen:

 

I am the General Counsel of Tenet Healthcare Corporation, a Nevada
corporation (the “Borrower”), and
have acted as such in connection with the Five-Year Credit Agreement dated as
of March 1, 2001 (the “Credit Agreement”)
among the Borrower and the Lenders, Managing Agents, Co-Agents, Swingline Bank
and Agents party thereto.

 

This opinion is delivered to you pursuant to Section 3.01(f) of
the Credit Agreement.  Terms used herein
which are defined in the Credit Agreement have the respective meanings set
forth in the Credit Agreement, unless otherwise defined herein.

 

In connection with this opinion, I have examined executed copies of
each of the Credit Agreement (including all of the Schedules and Exhibits
thereto), the Notes and the Swingline Note (together, the “Financing Documents”) and such corporate
documents and records of the Borrower and its Subsidiaries and certificates of
public officials and officers of the Borrower and its Subsidiaries, and such
other documents, as I have deemed necessary or appropriate for the purposes of
this opinion.  In stating my opinion, I
have assumed the genuineness of all signatures and the authority of persons
signing the Financing Documents on behalf of parties thereto other than the
Borrower, the authenticity of all documents submitted to me as originals and
the conformity to authentic original documents of all documents submitted to me
as certified, conformed or photostatic copies.

 

H-1

 

This opinion is limited to the
laws of California and the United States of America, and to the general
corporate laws of the State of Nevada.

 

Based upon the foregoing, I am of the opinion that:

 

1.              Corporate
Existence; Compliance with Law. 
The Borrower (a) is duly organized, validly existing and in good
standing under the laws of the State of Nevada, and (b) has the corporate
power, authority and legal right to own or operate its properties or to lease
the properties it operates and to conduct the business in which it is currently
engaged.  Except as could not, in the
aggregate, reasonably be expected to have a Material Adverse Effect or an
adverse effect on the validity or enforceability of any material provision of
any Financing Document, (x) the Borrower is duly qualified as a foreign
corporation, and in good standing under the laws of each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business
requires such qualification, and (y) each of the Borrower and its Subsidiaries
is in compliance with all laws, regulations, decrees and orders applicable to
the Borrower or any of its Subsidiaries (including, without limitation, laws,
regulations, decrees and orders relating to environmental, occupational and
health standards and controls and in respect to antitrust, monopoly, restraint
of trade or unfair competition).  The
Borrower and its Subsidiaries have obtained all certifications, licenses,
accreditations and approvals that are necessary to conduct their respective
businesses.  None of the Borrower or any
of its Subsidiaries has received or, to the best of my knowledge, expects to
receive, any order or notice of any violation or claim of violation of any law,
regulation, decree, rule, judgment or order of any governmental authority or
agency relating to the ownership or operation of any hospital or other facility
owned or operated by it, as to which the cost of compliance or the consequences
of noncompliance, individually or in the aggregate, would have a Material
Adverse Effect or which would impair the ability of the Borrower to discharge
any of its obligations under any of the Financing Documents.

 

2.              Corporate
Power; Authorization.  The
Borrower has the corporate power, authority and legal right to execute, deliver
and perform the Financing Documents and to borrow and obtain the issuance of
letters of credit thereunder, and has taken all necessary corporate action to
authorize the borrowings and the issuance of such letters of credit on the
terms and conditions of the Financing Documents and to authorize the execution,
delivery and performance of the Financing Documents.  No consent of any other Person, and no authorization of, notice
to, or other act by or in respect of the Borrower by any governmental
authority, agency or instrumentality is required in connection with borrowings
or the issuance of letters of credit thereunder or with the execution,
delivery,

 

H-2

 

performance, validity or
enforceability of the Financing Documents. 
The Borrower has duly executed and delivered each Financing Document.

 

3.              No
Legal Bar.  The execution,
delivery and performance by the Borrower of the Financing Documents, the
borrowings and the issuance of letters of credit thereunder and the use of the
proceeds of such borrowings and the use of such letters of credit will not
violate (except to the extent that such violation, if any, would not have a
Material Adverse Effect or an adverse effect on the validity or enforceability
of any material provision of any Financing Document) any provision of any
existing law or regulation applicable to the Borrower or any of its
Subsidiaries or of any award, order or decree applicable to the Borrower or any
of its Subsidiaries known to me (after due inquiry) of any court, arbitrator or
governmental authority, or of the restated articles of incorporation or
restated by-laws of the Borrower or, to the best of my knowledge (after due
inquiry), of any security issued by the Borrower or of any material mortgage,
indenture, lease, contract or other agreement or undertaking to which the
Borrower is a party or by which the Borrower or any of its respective
properties or assets may be bound, and will not result in or require the
creation or imposition of any Lien prohibited by the Credit Agreement on any of
its properties or revenues pursuant to the provisions of any such mortgage,
indenture, contract, lease or other agreement or other undertaking.

 

4.              No
Material Litigation.  To the
best of my knowledge, after due inquiry, (i) there are no pending or threatened
actions, suits, proceedings or investigations against the Borrower or any of
its Subsidiaries in any court or by or before any arbitrator or governmental
authority that calls into question the validity of the Financing Documents and
(ii) except as disclosed in Schedule 4.05 to the Credit Agreement, there
are no such pending or threatened actions, suits, proceedings or investigations
in which there is a reasonable possibility of an adverse determination that
could reasonably be expected to have a Material Adverse Effect or an adverse
effect on the validity or enforceability of any material provision of any
Financing Document.  For purposes of the
preceding sentence, I have assumed that, in medical malpractice actions now
pending or threatened against the Borrower and its Subsidiaries, damages would
be assessed consistent with the Borrower’s past experience.  The past experience of the Borrower has been
that damages assessed in such suits have been adequately covered by insurance.  In rendering the opinions set forth in this
paragraph 4, I have not conducted a search of any federal or state court
docket.  My inquiry has been limited to
consultation with counsel representing the Borrower and its Subsidiaries in
litigation matters.

 

This opinion relates to the present state of the laws referred to
herein and, in rendering this opinion, I assume no obligation to revise or
supplement this

 

H-3

 

opinion should the present
laws, or the interpretation thereof, be changed.  This opinion is rendered to the Lenders, the Managing Agents, the
Co-Agents, the Swingline Bank and the Agents as of the date hereof in
connection with the Credit Agreement, and may not be relied upon by any other
person (except an LC Issuing Bank) or by them in any other context.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Christi R. Sulzbach

  General Counsel

  

 

H-4

 

EXHIBIT I

 

 

OPINION OF

DAVIS POLK & WARDWELL

SPECIAL COUNSEL FOR THE ADMINISTRATIVE AGENT

 

 

[Closing Date]

 

 

To the Lenders, Managing Agents,

Co-Agents, Swingline Bank

and Agents

c/o Morgan Guaranty Trust Company

of New York, as Administrative Agent

60 Wall Street

New York, New York  10260

 

Ladies and Gentlemen:

 

We have participated in the preparation of the $1,500,000,000 Five-Year
Credit Agreement dated as of March 1, 2001 (the “Credit Agreement”) among Tenet Healthcare
Corporation, a Nevada corporation, and the Lenders, Managing Agents, Co-Agents,
Swingline Bank and Agents party thereto, and have acted as special counsel for
the Administrative Agent for the purpose of rendering this opinion pursuant to
Section 3.01(g) of the Credit Agreement. 
Terms defined in the Credit Agreement are used herein as therein
defined.

 

We have examined originals or copies, certified or otherwise identified
to our satisfaction, of such documents, corporate records, certificates of
public officials and other instruments and have conducted such other
investigations of fact and law as we have deemed necessary or advisable for
purposes of this opinion.

 

Upon the basis of the foregoing, we are of the opinion that:

 

The Credit Agreement constitutes a valid and binding agreement of the
Borrower, and the Notes and Swingline Note constitute valid and binding
obligations of the Borrower, in each case enforceable in accordance with its
terms, except as the same may be limited by bankruptcy, insolvency or similar
laws affecting creditors’ rights generally and by general principles of equity.

 

I-1

 

We are members of the Bar of the State of New York and the foregoing
opinion is limited to the laws of the State of New York and the federal laws of
the United States of America. Insofar as the foregoing opinions involve matters
governed by the laws of any other jurisdiction, we have relied, with your
permission and without independent investigation, upon the opinions of Gibson,
Dunn & Crutcher LLP and Christi R. Sulzbach, Esq., each dated the date
hereof, a copy of each of which has been delivered to you, and we have assumed,
without independent investigation, the correctness of the matters set forth in
each such opinion, our opinion being subject to the qualifications and
limitations set forth in each such opinion with respect thereto.  In addition, we express no opinion as to the
effect (if any) of any law of any jurisdiction (except the State of New York)
in which any Lender is located which limits the rate of interest that such
Lender may charge or collect.

 

This opinion is rendered solely to you in connection with the above
matter.  This opinion may not be relied
upon by you for any other purpose or relied upon by any other Person (except an
LC Issuing Bank) without our prior written consent.

 

 

	
   

  	
  Very truly yours,

  

 

I-2

 

EXHIBIT J

 

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

 

AGREEMENT dated as of
                  ,
200  between [ASSIGNOR] (the “Assignor”)
and [ASSIGNEE] (the “Assignee”).

 

W I T N E S S E T H

 

WHEREAS, this Assignment and Assumption Agreement relates to the
Five-Year Credit Agreement dated as of March 1, 2001 among Tenet
Healthcare Corporation (the “Borrower”)
and the Lenders, Managing Agents, Co-Agents, Swingline Bank and Agents party
thereto (as amended from time to time, the “Credit
Agreement”);

 

[WHEREAS, as provided under the Credit Agreement, the Assignor has a
Commitment to make Loans to the Borrower and participate in Letters of Credit
and Swingline Loans in the amount of
$                              ,
under which the Assignor has outstanding Syndicated Loans in the aggregate
principal amount of
$                      
at the date hereof];

 

[WHEREAS, Letters of Credit with a total amount available for drawing
thereunder of
$                
are outstanding at the date hereof, and Swingline Loans in the aggregate
principal amount of
$                            
are outstanding at the date hereof; and]

 

[WHEREAS, the Assignor proposes to assign to the Assignee all of the
rights of the Assignor under the Credit Agreement in respect of a portion of
its Commitment in an amount equal to
$                    
(the “Commitment Assigned Amount”),
together with a corresponding portion of each of its outstanding Syndicated
Loans, its LC Exposure and its obligations with respect to outstanding
Swingline Loans, and the Assignee proposes to accept such assignment of such
rights and assume the corresponding obligations from the Assignor;]

 

[WHEREAS, the Assignor also proposes to assign to the Assignee Money
Market Loans in an aggregate outstanding principal amount of
$                    ;]

 

J-1

 

NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements contained herein, the parties hereto agree as follows:

 

SECTION 1.  Definitions. All capitalized terms not
otherwise defined herein have the respective meanings set forth in the Credit
Agreement.

 

SECTION 2.  Assignment.  The Assignor hereby assigns and sells to the Assignee all of the
rights of the Assignor under the Credit Agreement with respect to its
Commitment to the extent of the Commitment Assigned Amount, and the Assignee
hereby accepts such assignment from the Assignor and assumes all of the
obligations of the Assignor under the Credit Agreement to the extent of the
Commitment Assigned Amount, including the purchase from the Assignor of a
pro-rata portion of the outstanding principal amount of each Syndicated Loan
made by the Assignor, a pro rata portion of its LC Exposure and a pro rata
portion of its obligations with respect to outstanding Swingline Loans.  Upon the execution and delivery hereof by
the Assignor and the Assignee, [the Borrower,] each Issuing Bank having a
Letter of Credit outstanding, the Swingline Bank [and the Administrative Agent]
and the payment of the amounts specified in Section 3 required to be paid
on the date hereof, (i) the Assignee shall, as of the date hereof, succeed to
the rights and be obligated to perform the obligations of a Lender under the
Credit Agreement with a Commitment in an amount equal to the Commitment
Assigned Amount, (ii) the Commitment of the Assignor shall, as of the date
hereof, be reduced by a like amount and the Assignor released from its
obligations under the Credit Agreement to the extent such obligations have been
assumed by the Assignee.  The assignment
provided for herein shall be without recourse to the Assignor.

 

SECTION 3.  Payments. 
As consideration for the assignment and sale contemplated in
Section 2 hereof, the Assignee shall pay to the Assignor on the date
hereof in Federal funds the amount heretofore agreed between them.(8)  Facility fees accrued with respect to the
Commitment Assigned Amount to the date hereof are for the account of the
Assignor and such fees accruing with respect to the Commitment Assigned Amount
on and after the date hereof are for the account of the Assignee.  Each of the Assignor and the Assignee agrees
that if it receives any amount under the Credit Agreement which is for the
account of the other party hereto, it shall receive the same for the account of
such other party to the extent of such other party’s interest therein and shall
promptly pay the same to such other party.

 

(8)
Amount should combine principal together with accrued interest and breakage
compensation, if any, to be paid by the Assignee.  It may be preferable in an appropriate case to specify these
amounts generically or by formula rather than as a fixed sum.

 

J-2

 

SECTION 4.  Consent of [the Borrower], the LC Issuing Banks, the
Swingline Lender [and the Administrative Agent.]  This Agreement is conditioned upon the
consent of [the Borrower,] each LC Issuing Bank having a Letter of Credit
outstanding, the Swingline Bank [and the Administrative Agent] pursuant to the
Credit Agreement.

 

SECTION 5.  Non-Reliance on Assignor.  The Assignor makes no representation or
warranty in connection with, and shall have no responsibility with respect to,
the solvency, financial condition or statements of the Borrower or the validity
and enforceability of the obligations of the Borrower in respect of any
Financing Document.  The Assignee
acknowledges that it has, independently and without reliance on the Assignor,
and based on such documents and information as it has deemed appropriate, made
its own credit analysis and decision to enter into this Agreement and will
continue to be responsible for making its own independent appraisal of the
business, affairs and financial condition of the Borrower.

 

SECTION 6.  Governing Law.  This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

 

SECTION 7.  Counterparts.  This Agreement may be signed in any number of counterparts, each
of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

 

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

 

	
   

  	
  [ASSIGNOR]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [ASSIGNEE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

J-3

 

The undersigned consent to the foregoing assignment:

 

	
   

  	
  [TENET HEALTHCARE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:]

  
	
   

  	
   

  	
   

  
	
   

  	
  MORGAN GUARANTY TRUST

  COMPANY OF NEW YORK,

  as Swingline Bank [and as

  Administrative Agent]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [LC ISSUING BANKS]

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

J-4

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