Document:

Exhibit
10 (f)

 

DEFERRED
COMPENSATION AGREEMENT

 

This Deferred
Compensation Agreement (the “Agreement”), is made and dated as of May 31,
1997, by and between Tenet Healthcare Corporation (the “Company”) and Jeffrey
C. Barbakow (the “Executive”).

 

RECITALS

 

A.           The Executive is
employed as the Chief Executive Officer of the Company and is entitled to
remuneration from the Company in connection with such employment.

 

B.             The Company and the
Executive acknowledge that the payment of remuneration to the Executive during
fiscal year 1998 and future years could result in certain amounts being non-tax
deductible by the Company as a result of the limitations imposed by
section 162(m) of the Internal Revenue Code of 1986, as amended
(“Section 162(m)”).

 

C.             The parties desire to
enter into this Agreement to defer the payment to the Executive of certain
amounts that would cause the base salary of the Executive to exceed the
limitations of Section 162(m);

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants set forth herein and for
other good, valuable and sufficient consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows:

 

AGREEMENT

 

1.               LIMITATION AND
DEFERRAL OF PAYMENTS.  In the event that
all or any portion of the compensation (including base salary and all other
amounts that legally are required to be included in the Executive’s
compensation for purposes of Section 162(m)) to be paid to the Executive
during any fiscal year would be disallowed under Section 162(m) as a
federal income tax deduction by the Company, then the Executive shall receive
payments of his base salary during such fiscal year only to the extent such
amounts may be paid without disallowance of the Company’s deduction under
Section 162(m), as determined in good faith by the Company in its sole
discretion, and the balance of the base salary shall be deferred for later
payment to the Executive in accordance with paragraph 3 below.  For purposes of determining the amount of
the base salary that may be paid in any given fiscal year to the Executive in
accordance with the foregoing, it shall be assumed that the Executive will
remain in the Company’s employ through the close of the relevant fiscal year
and be paid at the same base salary rate as in effect on the first day of such
fiscal year.

 

2.               PRIORITY OF
DEFERRALS UNDER COMPANY PLAN.  Any
amounts to be deferred under the terms of the Company’s Executive Deferred
Compensation and Supplemental Savings Plan, as the same has been or from time
to time may be amended, restated, modified, supplemented, renewed or replaced
(the “Plan”), shall be deferred prior to any deferrals being made under the
terms of this Agreement.

 

 

3.               INTEREST
CREDITING.  Any amounts deferred under
the terms of this Agreement shall be held by the Company on behalf of the
Executive and shall accrue interest at a rate equal to the interest rate for
amounts deferred under, and on the same terms as those set forth in, the Plan.

 

4.               PAYMENT OF DEFERRED
AMOUNTS.  Any portion of the base salary
that is not paid to the Executive as a result of the limitation imposed by
paragraph 1 above, together with interest accrued in accordance with paragraph
3 above (collectively, the “Deferred Amounts”), shall be paid to the Executive
in full within 10 business days of the earlier of (i) the date on which his
employment with the Company terminates for any reason or (ii) the occurrence of
a “Change in Control” as defined in the Company’s 1995 Stock Incentive Plan (or
any successor plan); PROVIDED, HOWEVER, that all or any portion of the Deferred
Amounts shall be paid to the Executive in any earlier fiscal year or fiscal
years to the extent that (i) such amount, together with all other “applicable
employee remuneration” for such fiscal year, would not be disallowed as a
federal income tax deduction by the Company for such fiscal year because of the
limitation imposed by Section 162(m), as determined in good faith by the
Company in its sole discretion and (ii) the fiscal year of payment follows by
at least one complete calendar year the fiscal year in which the base salary
would have been paid to the Executive but for the provisions of this Agreement.

 

5.               TAX
WITHHOLDING.  The Company shall be
entitled to withhold for the payment of taxes all amounts required to be
withheld under federal, state and local income and other tax laws, including,
without limitation, all employment taxes that may be required to be paid on the
Deferred Amounts.

 

6.               UNSECURED RIGHTS;
NONTRANSFERABILITY.  The Executive’s
rights under this Agreement shall be those of a general unsecured creditor of
the Company, and all payments to the Executive of the Deferred Amounts shall be
made from the general assets of the Company. 
Notwithstanding the foregoing, the Company may in its discretion set
aside funds or assets to satisfy its obligations hereunder through the
establishment of a grantor trust subject to the claims of the Company’s
creditors, or through any other set aside of funds or assets that are held as
part of the Company’s general assets. 
The Executive’s rights under this Agreement may not be anticipated,
alienated, sold, transferred, assigned, pledge, encumbered, attached or
garnished by creditors of the Executive.

 

7.               SUCCESSORS;
BENEFICIARY.  This Agreement shall inure
to the benefit of and be binding upon the successors and assigns of the Company
upon any sale of all or substantially all of the Company’s assets, or upon any
merger, consolidation or reorganization of the Company with or into any other
corporation, all as though such successors and assigns of the Company and their
respective successors and assigns were the Company.  This Agreement shall inure to the benefit of and be binding upon
the executors, heirs, assigns and/or designees of the Executive.  The Executive shall be entitled to designate
a beneficiary for the payment upon his death of any Deferred Amounts to which
the Executive is entitled under this Agreement.

 

8.               GENERAL.  This Agreement shall be construed, interpreted
and enforced in accordance with the laws of the State of California, without
giving effect to the choice of law

 

2

 

principles thereof.  This
Agreement constitutes the entire agreement between the Company and the
Executive with respect to the subject matter hereof.

 

9.               NO THIRD-PARTY
BENEFICIARIES.  This Agreement is for
the benefit of only the Executive and the Company and, except as expressly
provided in paragraph 7, no other person shall be entitled to any benefits
hereunder.

 

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

 

	
  THE COMPANY

  	
  TENET HEALTHCARE
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  /s/ Scott M. Brown

  	
   

  
	
   

  	
  By:  Scott M. Brown

  
	
   

  	
  Title:  Sr. Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE EXECUTIVE

  	
  /s/ Jeffrey C. Barbakow

  	
   

  
	
   

  	
  Jeffrey C. Barbakow

  

 

3Exhibit 10 (l)

 

September 15, 2003

 

 

PERSONAL & CONFIDENTIAL

 

 

Trevor Fetter

Tenet Healthcare Corporation

3820 State Street

Santa Barbara, CA 93105

 

 

Dear Trevor,

 

I am pleased
to confirm the offer made by the Board of Directors for to you to become President
and Chief Executive Officer of Tenet Healthcare Corporation effective
September 12, 2003.  You will
report to the Board of Directors.

 

This letter
will serve to supplement the terms of your compensation and benefits set forth
in the November 7, 2002, letter provided to you when you were named
President.  All of the terms of that
letter remain in effect except the following:

 

a.                                       Base Compensation: 
Effective September 12, 2003 your base salary will be increased to
an annual rate of $1,050,000 payable bi-weekly.  The next scheduled increase in your base compensation will be
determined in March 2005 (retroactive to January 1, 2005).  The Compensation Committee will review your
performance and competitive compensation data in March 2004 and may
consider an adjustment at that time, although none is expected.

 

b.                                      Annual Incentive Plan: 
Your target award percentage in Tenet’s Annual Incentive Plan (AIP) will
be 100% of your base salary.  For
calendar year 2003, the performance bonus will be at the discretion of the
Compensation Committee based on the CEO base salary and Target Award
Percentage, each as if in effect for the full year.  For 2004 and beyond, the AIP Award bonus will be based on planned
goals with the actual award  determined
under provisions of the AIP adopted each year.

 

c.                                       Car Allowance: 
Your automobile allowance will be $24,200 per year, paid bi-weekly.

 

d.                                      ExecuPlan Medical: 
You will participate in Tenet’s ExecuPlan, which provides reimbursement
for out of pocket health and dental expenses at the $10,000 annual level.

 

e.                                       Stock Options: 
You will receive a one-time promotion grant of 350,000 non-qualified
stock options with a strike price equal to the closing market price on
September 15, 2003, the date of grant by the company’s Compensation Committee.  One third of the options will vest on the
first anniversary of the grant, the second third will vest on the second
anniversary of the grant and the final third will vest on the third anniversary
of the grant.  Also, you will receive a
grant of 500,000 non-qualified stock options in March 2004 (or earlier if
stock incentive awards are made to other key executives generally at an earlier
time) under the existing annual CEO grant guidelines.  If stock incentive awards to other key executives generally are
made in a form other than options, your grant will be adjusted to result in a
stock incentive award with a value equal to what the value of 500,000 options
being granted on such date would be.

 

 

Trevor Fetter

September 15, 2003

 

 

f.                                         Benefits:  You will receive all standard
employee benefits in accordance with the TenetSelect benefits and other
benefits generally provided to senior executives.

 

g.                                      Severance Protection Agreement:  In
lieu of the severance protection provided in your November 7, 2002,
letter, you will participate in the Tenet Executive Severance Protection Plan
(TESPP) at your current level, which provides severance protection equal to
three times base salary plus target bonus, benefits continuation and legal fees
reimbursement for a qualifying termination as defined in the TESPP.  The TESPP will be amended to include having
the restricted shares granted you in January 2003 subject to accelerated
vesting in full in the event of a qualifying termination as defined in the
TESPP.

 

Finally, your employment with the company will continue to be on an
at-will basis which means that either you or the company may terminate the
employment relationship with or without notice or with or without cause at any
time.  The term “cause” as used above
shall include, but not be limited to, dishonesty, fraud, willful misconduct,
self dealing or violation of the company’s Standards of Conduct, breach of
fiduciary duty (whether or not involving personal profit), failure, neglect or
refusal to perform your duties in any material respect, violation of law
(except traffic violations or similar minor infractions), violation of the
company’s Human Resources Operations or other Policies, or any material breach
of this agreement; provided, however, that a failure to achieve or meet
business objectives as defined by the company shall not be considered “cause”
so long as you have devoted your best and good faith efforts and full attention
to the achievement of those business objectives.

 

Your November 7, 2002, letter, as supplemented
by this letter, contains the entire agreement between you and Tenet regarding
the terms and conditions of your employment, and fully supersedes any and all
prior agreements that may have existed between you and Tenet regarding the
terms and conditions of your employment. 
Please sign, date, and return a copy of this letter to me indicating
your acceptance of these terms.

 

Congratulations and best wishes in your new position.

 

	
  Sincerely,

  	
  ACCEPTED AND AGREED TO:

  
	
   

  	
   

  	
   

  
	
  /s/ Edward A. Kangas

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Edward A. Kangas

  	
  s/s Trevor Fetter

  	
   

  	
  9/15/03

  	
   

  
	
  Chairman

  	
  Trevor Fetter

  	
  Date

  
	
   

  	
   

  	
   

  
	
  c:

  	
  Anthony Austin

  	
   

  	
   

  
	
   

  	
  Personnel File

  	
   

  	
   

  
							

 

2

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