Document:

Ex-10.12 Management Stockholder's Agreement

 

Exhibit 10.12

MANAGEMENT STOCKHOLDER’S AGREEMENT

          This
Management Stockholder’s Agreement (this
“Agreement”) is entered into as of November 17, 2006 between HCA Inc., a Delaware corporation (the “Company”), and the undersigned person
(the “Management Stockholder”) (the Company and the Management Stockholder being
hereinafter collectively referred to as the “Parties”). All capitalized terms not
immediately defined are hereinafter defined in Section 8(b) of this Agreement.

          WHEREAS, pursuant to the Agreement and Plan of Merger, dated as of July 24, 2006 (the
“Merger Agreement”), by and among Hercules Holding II, LLC, a Delaware limited liability
company (“Hercules Holding”), Hercules Acquisition Corporation, a Delaware corporation and
a direct wholly owned subsidiary of Hercules Holding (“Merger Sub”) and the Company, and
subject to the terms and conditions set forth in the Merger Agreement, Merger Sub will on the
Closing Date merge with and into the Company (the “Merger”), with the Company surviving the
Merger;

          WHEREAS, in connection with the Merger, each of Bain Capital Fund IX, L.P., KKR Millennium
Fund L.P., KKR 2006 Fund L.P. and ML Global Private Equity Fund, L.P. (collectively, the
“Investors”) are contributing certain funds to Hercules Holding in exchange for membership
interests representing, as of the Closing Date, [•]% of the issued and outstanding membership
interests of Hercules Holding (such percentage, as adjusted from time to time to reflect the
Investors’ then current ownership percentage in Hercules Holding, the “Investors HoldCo
Ownership Percentage”);

          WHEREAS, as a result of the Merger and after giving effect to the issuance of all Rollover
Stock and Purchased Stock (in each case as defined below) in connection therewith, as of the
Closing Date, Hercules Holdings will own, beneficially and of record, [•]% of the issued and
outstanding shares of the Company’s common stock, par value $0.01 per share (the “Common
Stock”) (such percentage, as adjusted from time to time to reflect the then current ownership
percentage of Hercules Holding in the Company, the “HoldCo Company Ownership Percentage”);

          WHEREAS, in connection with the Merger, the Management Stockholder has been selected by the
Company (i) to exchange certain shares of common stock of the Company owned immediately prior to
the Effective Time for new shares of Common Stock (the “Rollover Stock”) pursuant to an
Exchange and Purchase Agreement entered into between the Management Stockholder and Hercules
Holding (the “Exchange Agreement”), which exchange the Parties intend for U.S. federal
income tax purposes to be treated as an exchange of shares by the Management Stockholder in a
transaction described in section 1036 and/or section 368(a)(1)(E) of the Internal Revenue Code of
1986, as amended, in which no gain or loss is recognized by the Management Stockholder; (ii) to
exchange all or a portion of the Management Stockholder’s options to purchase shares of common
stock of the Company outstanding prior to the effective time of the Merger for fully-exercisable
options to purchase Common Stock after the Merger (the “Rollover Options”) pursuant to the
terms of the Company’s current option plan under which the options were issued (the “Pre-Merger
Plans”), as adjusted pursuant to the Option Rollover Agreement to be entered into between the
Management Stockholder and the Company (the “Option Rollover Agreement”); (iii) to be
permitted to transfer to the Company cash in exchange for shares of Common Stock (the
“Purchased Stock”); and/or (iv) to receive options to purchase shares of Common Stock (the

 

 

“New Options” and together with the Rollover Options, the “Options”) pursuant
to the terms set forth below and the terms of the 2006 Stock Incentive Plan for Key Employees of
HCA Inc. and its Affiliates (the “Option Plan”) and the Stock Option Agreement dated as of
the date hereof, entered into by and between the Company and the Management Stockholder (the
“New Option Agreement” and together with the Option Rollover Agreement, the “Stock
Option Agreements”); and

          WHEREAS, this Agreement is one of several other agreements (“Other Management Stockholders
Agreements”) which concurrently with the execution hereof or in the future will be entered into
between the Company and other individuals who are or will be key employees of the Company or one of
its subsidiaries (collectively, the “Other Management Stockholders”).

          NOW THEREFORE, to implement the foregoing and in consideration of the mutual agreements
contained herein, the Parties agree as follows:

          1. Issuance of Purchased Shares; New Options; Rollover Stock and Options; Voting.

          (a) Subject to the terms and conditions hereinafter set forth, the Management Stockholder
hereby subscribes for and shall purchase, as of the Closing Date (but immediately after the
Effective Time), and the Company shall issue and deliver to the Management Stockholder as of the
Closing Date, the number of shares of Purchased Stock at a per share purchase price (the “Base
Price”), in each case as set forth on Schedule I hereto, which Base Price is equal to
the effective per share purchase price payable by the Investors for the shares of the Company in
connection with the Merger.

          (b) Immediately prior to the Effective Time, the Management Stockholder shall, if applicable,
transfer to Hercules Holding the shares identified by such Management Stockholder in the Exchange
Agreement and immediately after the Effective Time the Management Stockholder will receive a number
of shares, in each case pursuant to the Exchange Agreement. The Parties agree that they will not
treat the Management Stockholder as holding a membership interest in Hercules Holding for U.S.
federal income tax purposes.

          (c) Subject to the terms and conditions hereinafter set forth and as set forth in the Option
Plan, as of the Closing Date the Company is granting to the Management Stockholder New Options to
acquire the number of shares of Common Stock as set forth on Schedule I hereto, at an
initial per share exercise price equal to the Base Price, and the Parties shall execute and deliver
to each other copies of the New Option Agreement concurrently with the issuance of the New Options.

          (d) Subject to the terms and conditions hereinafter set forth and as set forth in the Option
Rollover Agreement and the Pre-Merger Plans, as of the Effective Time, the Rollover Options shall
be adjusted as set forth in the Option Rollover Agreement.

          (e) The Company shall have no obligation to sell any Purchased Stock to any person who (i) is
a resident or citizen of a state or other jurisdiction in which the sale of the Common Stock to him
or her would constitute a violation of the securities or “blue sky” laws of such jurisdiction or
(ii) is not an employee or director of the Company or its subsidiaries as of the Closing Date.

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          2. Management Stockholder’s Representations, Warranties and Agreements.

          (a) The Management Stockholder agrees and acknowledges that he will not prior to a Change in
Control, directly or indirectly, offer, transfer, sell, assign, pledge, hypothecate or otherwise
dispose of (any of the foregoing acts being referred to herein as a “transfer”) any shares
of Purchased Stock, Rollover Stock and, at the time of exercise, Common Stock issuable upon
exercise of Options (“Option Stock”; together with all Purchased Stock, Rollover Stock and
any other Common Stock otherwise acquired and/or held by the Management Stockholder Entities as of
or after the date hereof, “Stock”), except as otherwise provided for herein. If the
Management Stockholder is an Affiliate of the Company, the Management Stockholder also agrees and
acknowledges that he or she will not transfer any shares of the Stock unless:

     (i) the transfer is pursuant to an effective registration statement under the
Securities Act of 1933, as amended, and the rules and regulations in effect thereunder (the
“Act”), and in compliance with applicable provisions of state securities laws; or

     (ii) (A) counsel for the Management Stockholder (which counsel shall be reasonably
acceptable to the Company) shall have furnished the Company with an opinion or other advice,
reasonably satisfactory in form and substance to the Company, that no such registration is
required because of the availability of an exemption from registration under the Act and (B)
if the Management Stockholder is a citizen or resident of any country other than the United
States, or the Management Stockholder desires to effect any transfer in any such country,
counsel for the Management Stockholder (which counsel shall be reasonably satisfactory to
the Company) shall have furnished the Company with an opinion or other advice reasonably
satisfactory in form and substance to the Company to the effect that such transfer will
comply with the securities laws of such jurisdiction.

Notwithstanding the foregoing, the Company acknowledges and agrees that any of the following
transfers of Stock are deemed to be in compliance with the Act and this Agreement (including
without limitation any restrictions or prohibitions herein) and no opinion of counsel is required
in connection therewith: (I) a transfer made pursuant to Sections 3, 4, 5, 6, 7 or 10 hereof, (II)
a transfer upon the death or Permanent Disability of the Management Stockholder to the Management
Stockholder’s Estate or a transfer to the executors, administrators, testamentary trustees,
legatees or beneficiaries of a person who has become a holder of Stock in accordance with the terms
of this Agreement; provided that it is expressly understood that any such transferee shall
be bound by the provisions of this Agreement, (III) a transfer made after the Closing Date in
compliance with the federal securities laws to a Management Stockholder’s Trust, provided
that such transfer is made expressly subject to this Agreement and that the transferee agrees in
writing to be bound by the terms and conditions hereof as a “Management Stockholder” with respect
to the representations and warranties and other obligations of this Agreement, and provided
further that it is expressly understood and agreed that if such Management Stockholder’s
Trust at any point includes any person or entity other than the Management Stockholder, his spouse
(or ex-spouse) or his lineal descendants (including adopted children) such that it fails to meet
the definition thereof as set forth in Section 8(b), such transfer shall no longer be deemed in
compliance with this Agreement and shall be subject to 3(c) below, (IV) a transfer of Stock made by
the Management Stockholder to Other Management Stockholders, provided that it is expressly
understood that any such transferee(s) shall be bound by the provisions of this Agreement,

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(V) a transfer made by the Management Stockholder, with the Board’s approval, to the Company or any
subsidiary of the Company and (VI) the Management Stockholder may transfer shares of Stock pursuant
to the terms of Sections 6, whereupon (x) any shares of Stock transferred to the Company pursuant
to Section 6 shall conclusively be deemed thereafter not to be Shares under this Agreement and not
to be subject to any of the provisions, or entitled to the benefit of any of the provisions of,
this Agreement and (y) any Shares transferred to the Investors or any of their respective
Affiliates shall conclusively be deemed thereafter to be included in the calculation of the
Aggregate Investor Ownership Share Number under this Agreement and will be subject to, and entitled
to the benefit of, the provisions hereof.

          (b) The certificate (or certificates) representing the Stock shall bear the following legend:

“THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED, SOLD, ASSIGNED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH TRANSFER, SALE,
ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION COMPLIES WITH THE PROVISIONS
OF THE MANAGEMENT STOCKHOLDER’S AGREEMENT BETWEEN HCA INC. (THE “COMPANY”) AND THE
MANAGEMENT STOCKHOLDER NAMED ON THE FACE HEREOF OR THE SALE PARTICIPATION AGREEMENT
AMONG SUCH MANAGEMENT STOCKHOLDER AND BAIN CAPITAL FUND IX, L.P., KKR MILLENNIUM
FUND L.P., KKR 2006 FUND L.P. AND ML GLOBAL PRIVATE EQUITY FUND, L.P., IN EACH CASE
DATED AS OF [•], 2006 (COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE
COMPANY).”

          (c) The Management Stockholder acknowledges that he has been advised that (i) the Stock are
characterized as “restricted securities” under the Act inasmuch as they are being acquired from the
Company in a transaction not involving a Public Offering and that under the Act (including
applicable regulations) the Stock may be resold without registration under the Act only in certain
limited circumstances, (ii) a restrictive legend in the form heretofore set forth shall be placed
on the certificates representing the Stock and (iii) a notation shall be made in the appropriate
records of the Company indicating that the Stock is subject to restrictions on transfer and
appropriate stop transfer restrictions will be issued to the Company’s transfer agent with respect
to the Stock.

          (d) If any shares of the Stock are to be disposed of in accordance with Rule 144 under the Act
or otherwise, the Management Stockholder shall promptly notify the Company of such intended
disposition and shall deliver to the Company at or prior to the time of such disposition such
documentation as the Company may reasonably request in connection with such sale and, in the case
of a disposition pursuant to Rule 144, shall deliver to the Company an executed copy of any notice
on Form 144 required to be filed with the SEC.

          (e) The Management Stockholder agrees that, if any shares of the Stock are offered to the
public pursuant to an effective registration statement under the Act (other than registration of
securities issued on Form S-8, S-4 or any successor or similar form), the Management Stockholder
will not effect any public sale or distribution of any shares of the Stock not covered by such
registration statement from the time of the receipt of a notice from

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the Company that the Company has filed or imminently intends to file such registration
statement to, or within 180 days (or such shorter period as may be consented to by the managing
underwriter or underwriters) in the case of the IPO and ninety (90) days (or in an underwritten
offering such shorter period as may be consented to by the managing underwriter or underwriters, if
any) in the case of any other Public Offering after the effective date of such registration
statement, unless otherwise agreed to in writing by the Company.

          (f) The Management Stockholder represents and warrants that (i) with respect to the Purchased
Stock, Rollover Stock and Option Stock, the Management Stockholder has received and reviewed the
available information relating to such Stock, including having received and reviewed the documents
related thereto, certain of which documents set forth the rights, preferences and restrictions
relating to the Options and the Stock underlying the Options and (ii) the Management Stockholder
has been given the opportunity to obtain any additional information or documents and to ask
questions and receive answers about such information, the Company and the business and prospects of
the Company which the Management Stockholder deems necessary to evaluate the merits and risks
related to the Management Stockholder’s investment in the Stock and to verify the information
contained in the information received as indicated in this Section 2(f), and the Management
Stockholder has relied solely on such information.

          (g) The Management Stockholder further represents and warrants that (i) the Management
Stockholder’s financial condition is such that the Management Stockholder can afford to bear the
economic risk of holding the Stock for an indefinite period of time and has adequate means for
providing for the Management Stockholder’s current needs and personal contingencies, (ii) the
Management Stockholder can afford to suffer a complete loss of his or her investment in the Stock,
(iii) the Management Stockholder understands and has taken cognizance of all risk factors related
to the purchase of the Stock (iv) the Management Stockholder’s knowledge and experience in
financial and business matters are such that the Management Stockholder is capable of evaluating
the merits and risks of the Management Stockholder’s purchase of the Stock as contemplated by this
Agreement, (v) with respect to the Purchased Stock, such Purchased Stock is being acquired by the
Management Stockholder for his or her own account, not as nominee or agent, and not with a view to
the resale or distribution of any part thereof in violation of the Act, and the Management
Stockholder has no present intention of selling, granting any particulation in, or otherwise
distributing the Purchased Stock in violation of the Act, and (vi) the Management Stockholder is an
“accredited investor” as defined in Rule 501(a) of Regulation D, as amended, under the Act.

          3. Transferability of Stock.

          (a) The Management Stockholder agrees that he or she will not transfer any shares of Stock at
any time during the period commencing on the date hereof and ending on the fifth anniversary of the
Closing Date; provided, however, that during such period, the Management
Stockholder may transfer shares of Stock during such time pursuant to one of the following
exceptions: (i) transfers permitted by Sections 4 (but only for the period set forth therein), 5, 6
or 7; (ii) transfers permitted by clauses (II), (III) and (IV) of Section 2(a); (iii) a sale of
shares of Common Stock pursuant to an effective registration statement under the Act filed by the
Company, including upon the proper exercise of registration rights of such Management Stockholder
under Section 10 (excluding any registration on Form S-8, S-4 or any successor or similar form);
(iv) transfers permitted pursuant to the Sale Participation Agreement (as defined in Section 8);
(v) transfers permitted by the Board or (vi) transfers to

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any of the Investors (any such exception, a “Permitted Transfer”). In addition,
during the period commencing on the fifth anniversary of the Closing Date through the eighth
anniversary of the Closing Date, the Management Stockholder may only transfer shares of Stock to
the extent that, at the time of any such transfer, the Management Stockholders Transfer Ratio does
not exceed the Investor Transfer Ratio. For purposes of this Section 3(a),

     (i) the “Management Stockholders Transfer Ratio” shall mean the quotient,
expressed as a percentage, of (x) the aggregate number shares of Common Stock transferred
(other than through Permitted Transfers described in clauses (ii) and (vi) of Section 3(a))
by the Management Stockholder Entities and all Other Management Stockholders (including the
Management Stockholder’s Trust and Management Stockholder’s Estate of such Other Management
Stockholders) prior to and including the date of the proposed transfer (including for the
avoidance of doubt shares of Common Stock proposed to be transferred on such date), as
recorded on the books of the Company and/or reflected in any relevant documentation
divided by (y) the aggregate number of shares of Common Stock (without duplication)
which have been issued or are otherwise issuable (upon the exercise of Options or otherwise)
to or have been or are otherwise owned by the Management Stockholder Entities and all Other
Management Stockholders (including the Management Stockholder’s Trust and Management
Stockholder’s Estate of such Other Management Stockholders) prior to and including the
relevant time and which are not subject to vesting or similar restrictions;

     (ii) the “Investor Transfer Ratio” shall mean the quotient, expressed as a
percentage, of (x) the number shares of Common Stock transferred for value by the Investors
(other than among Investors or to any of their respective affiliates or affiliated funds) on
or prior to the relevant time divided by (y) the Aggregate Investor Ownership Share
Number; and

     (iii) the “Aggregate Investor Ownership Share Number” shall mean the sum of (x)
the product of (A) the aggregate number of shares of Common Stock issued and outstanding as
of the Closing Date (but immediately after the Effective Time and giving effect to the
issuance of Purchased Stock and Rollover Stock on the Closing Date), times (B) the
Investors HoldCo Ownership Percentage as of the Closing Date (but immediately after the
Effective Time and giving effect to the issuance of Purchased Stock and Rollover Stock on
the Closing Date), times (C) the HoldCo Company Ownership Percentage as of the
Closing Date (but immediately after the Effective Time and giving effect to the issuance of
Purchased Stock and Rollover Stock on the Closing Date) and (y) the number of shares of
Common Stock acquired or held directly (for the avoidance of doubt, without duplication of
the ownership represented by clause (x)) by the Investors between the period from the
Closing Date up to the relevant time at which the Investor Transfer Ratio is determined.

          (b) Notwithstanding anything to the contrary herein, Section 3(a) shall terminate and be of no
further force or effect upon the occurrence of a Change in Control.

          (c) No transfer of any such shares in violation hereof shall be made or recorded on the books
of the Company and any such transfer shall be void ab initio and of no effect.

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          (d) Notwithstanding anything to the contrary herein, the Investors may, at any time and from
time to time, by unanimous agreement, waive the restrictions on transfers contained in Section
3(a), whether such waiver is made prior to or after the transferee has effected or committed to
effect the transfer, or has notified the Investors of such transfer or commitment to transfer. Any
transfers made pursuant to such waiver or which are later made subject to such a waiver shall, as
of the date of the waiver and at all times thereafter, not be deemed to violate any applicable
restrictions on transfers contained in this Agreement.

          4. Right of First Offer. (a) If, at any time after the fifth anniversary of the
Closing Date and prior to the consummation of the IPO, the Management Stockholder proposes to
transfer any or all of the Management Stockholder’s Stock to a third party (any such third party,
the “ROFO Transferee”) (other than any transfer pursuant to clauses (II), (III), (IV), (V)
and (VI) of Section 2(a), to the extent made to a third party), the Management Stockholder shall
notify the Company in writing of the Management Stockholder’s intention to transfer such Stock
(such written notice, a “ROFO Notice”). The ROFO Notice shall include a true and correct
description of the number of shares of Stock to be transferred and the material terms of such
proposed transfer or if requested by the Company, a copy of any proposed documentation to be
entered into with any ROFO Transferee in respect of such transfer) and shall contain an irrevocable
offer to sell such Stock to the Company (in the manner set forth below) at a purchase price equal
to the minimum price at which the Management Stockholder proposes to transfer such Stock to any
ROFO Transferee and on substantially the same terms and conditions as the proposed transfer. At
any time within thirty (30) days after the date of the receipt by the Company of the ROFO Notice,
the Company shall have the right and option to purchase, or to arrange for a subsidiary, third
party or Affiliate to purchase, all (but not less than all) of the shares of Stock proposed to be
transferred to a ROFO Transferee, pursuant to Section 4(b).

          (b) The Company shall have the right and option to purchase, or to arrange for a subsidiary,
third party or Affiliate to purchase, all of the shares of Stock proposed to be transferred to any
ROFO Transferee at a purchase price equal to the minimum price at which the Management Stockholder
proposes to transfer such Stock to any ROFO Transferee and otherwise on substantially the same
terms and conditions as the proposed transfer (or, if the proposed transfer to any ROFO Transferee
includes any consideration other than cash, then at the sole option of the Company, at the
equivalent all cash price, determined in good faith by the Board after consultation with the Chief
Executive Officer of the Company), by delivering (i) a certified bank check or checks in the
appropriate amount (or by wire transfer of immediately available funds, if the Management
Stockholder Entities provide to the Company wire transfer instructions) and/or (ii) any such
non-cash consideration to be paid to the Management Stockholder at the principal office of the
Company against delivery of certificates or other instruments representing the shares of Stock so
purchased, appropriately endorsed by the Management Stockholder. If at the end of the 30-day
period, the Company has not tendered the purchase price for such shares in the manner set forth
above, the Management Stockholder may, during the succeeding 60-day period, sell not less than all
of the shares of Stock proposed to be transferred to any ROFO Transferee on terms no less favorable
to the Management Stockholder than those contained in the ROFO Notice. Promptly after such sale,
the Management Stockholder shall notify the Company of the consummation thereof and shall furnish
such evidence of the completion and time of completion of such sale and of the terms thereof as may
reasonably be requested by the Company. If, at the end of sixty (60) days following the expiration
of the 30-day period during which the Company is entitled hereunder to purchase the Stock, the
Management

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Stockholder has not completed the sale of such shares of the Stock as aforesaid, all of the
restrictions on sale, transfer or assignment contained in this Agreement shall again be in effect
with respect to such shares of the Stock.

          (c) Notwithstanding anything in this Agreement to the contrary, this Section 4 shall terminate
and be of no further force or effect upon the earlier of occurrence of a Change in Control or the
IPO.

          5. Pre-Emptive Rights.

          (a) If at any time prior to the IPO, the Company issues or sells any shares of Common Stock
proposed to be purchased for value, directly or indirectly, by any of the Investors or any of their
respective Affiliates (the “Offered Stock”), or permits any direct or indirect subsidiary
to propose such issuance or sale, each Senior Management Stockholder (together with the other
Senior Management Stockholders, the “Pre-Emptive Rights Holders”) shall have a preemptive
right to purchase or subscribe for the number or amount of such shares of Offered Stock in the
offering as such Senior Management Stockholder may elect to purchase or subscribe for, up to and
including such Senior Management Stockholder’s ownership percentage (not including Common Stock
acquirable by exercise of options) in the Company (determined as of the time of the Board’s
approval of such issuance) of the total number or amount of Offered Stock proposed to be issued
(the “Participation Threshold”). The Company shall provide each Senior Management
Stockholder with notice of a proposed issuance or sale subject to this pre-emptive right at least
10 days prior to such issuance (the “Participation Notice”) specifying the principal terms
and conditions of the proposed issuance or sale, including (A) the amount and kind of Offered Stock
to be included in the issuance or sale, (B) the price per share of Common Stock subject to issuance
or sale, including a description of any pricing formulae and of any non-cash consideration
sufficiently detailed to permit valuation thereof and (C) the name and address of the Person to
whom the Offered Stock is proposed to be issued. If such Senior Management Stockholder exercises
his or her pre-emptive right, he or she shall be required to pay the same consideration for each
share of Offered Stock as the Company shall receive for each share of Offered Stock purchased by a
Person other than a Pre-Emptive Rights Holder and as the Company shall have specified in its notice
of the proposed issuance (except that if the Company or its subsidiary, as applicable, receives
non-cash consideration, the Senior Management Stockholder shall have the option, if he or she so
chooses, to pay in cash the Fair Market Value of such non-cash consideration). The pre-emptive
right given by the Company pursuant to this Section 5(a) shall terminate if the Senior Management
Stockholder shall not have notified the Company in writing of its election to exercise such right
within ten (10) days after receipt of the notice of the proposed issuance; provided that
such right shall become available once again if the price or any other material term of the
proposed issuance shall change, in which case the parties shall again follow the procedures set
forth in this Section 5(a).

          Each Pre-Emptive Rights Holder desiring to accept the offer contained in the Participation
Notice shall accept such offer by furnishing a written commitment to the Company or the issuing
subsidiary, as the case may be, within ten (10) days after the effectiveness of the Participation
Notice specifying the amount of Offered Stock (not in any event to exceed such Pre-Emptive Rights
Holder’s Participation Threshold) for which such Pre-Emptive Rights Holder desires to subscribe
(each a “Participating Buyer”). Each Participation Buyer who does not so accept such offer
in compliance with the above requirements, including the applicable time period, shall be deemed to
have waived all rights

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to participate in such issuance or sale, and the Company (or any of its subsidiaries, if
applicable) shall thereafter be free to issue the Offered Stock to the prospective subscriber and
any other Participating Buyers, at a price no less than the minimum price set forth in the
Participation Notice and on other principal terms not materially more favorable to the prospective
subscriber and any other Participating Buyers than those set forth in the Participation Notice,
without any further obligation to such non-accepting Pre-Emptive Rights Holders pursuant to this
Section 5(a). If, prior to consummation, the terms of such proposed issuance or sale shall change
with the result that the price shall be less than the minimum price set forth in the Participation
Notice or the other principal terms shall be materially more favorable to the prospective
subscriber than those set forth in the Participation Notice, it shall be necessary for a separate
Participation Notice to be furnished, and the terms and provisions of this Section 5(a) separately
complied with, in order to consummate such issuance or sale pursuant to this Section 5(a).

          (b) The acceptance of each Participating Buyer shall be irrevocable except as hereinafter
provided, and each such Participating Buyer shall be bound and obligated to acquire in the issuance
or sale on the same terms and conditions, with respect to each unit of Offered Stock issued, as the
prospective subscriber, such amount of Offered Stock as such Participating Buyer shall have
specified in such Participating Buyer’s written commitment; provided, however, that
if any of the economic terms of the issuance or sale change, including without limitation if the
per share price will be greater than the per share price disclosed in the Participation Notice, or
any of the other principal terms or conditions will be materially less favorable to the
Participating Buyer than those described in the Participation Notice, the Company or the issuing
subsidiary, as the case may be, will provide written notice thereof to each Participating Buyer and
each Participating Buyer will then be given an opportunity to withdraw the offer contained in such
holder’s written commitment (by providing prompt (and in any event within 5 business days) notice
of such withdrawal to the Company or the issuing subsidiary, whereupon such withdrawing
Participating Buyers will be released from all obligations thereunder.

          (c) If at the end of the 180th day following the date of the effectiveness of the
Participation Notice the Company or the issuing subsidiary, as the case may be, has not completed
the issuance or sale, each Participating Buyer shall be released from all obligations under the
written commitment, the Participation Notice shall be null and void, and it shall be necessary for
a separate Participation Notice to be furnished, and the terms and provisions of this Section 5
separately complied with, in order to consummate such Issuance pursuant to this Section 5.

          (d) The preemptive rights under Section 5(a) shall not apply to (i) securities issued to
officers, employees or directors (other than representatives of the Investors) of, or consultants
to, the Company or its subsidiaries pursuant to profit sharing, management stock option or other
management incentive plans; (ii) securities issued to non-Affiliates pursuant to any merger,
consolidation, acquisition of assets or businesses or similar transaction; (iii) securities issued
pursuant to a stock split or stock dividend; (iv) securities issued pursuant to the exercise of any
Option, warrant or convertible security; (v) securities issued pursuant to a Public Offering; (vi)
securities issued in connection with third-party debt financing; or (vii) securities issued to the
Company or any of its subsidiaries.

          (e) Notwithstanding anything to the contrary in the foregoing, in the event that the Company,
in its reasonable judgment, needs to sell securities to the Investors prior to

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the notice periods set forth in clauses (a), (b) or (c) above, the Company shall, promptly
following such issuance, give the Pre-Emptive Rights Holders the opportunity to invest in Offered
Stock in order to maintain its ownership percentage (measured prior to the issuance to the
Investors).

          6. The Management Stockholder’s Right to Resell Stock and
Options to the Company.

          (a) Except as otherwise provided herein, and subject to Section 7(g), if, prior to the
consummation of the IPO, the Management Stockholder’s employment with the Company (or, if
applicable, any of its subsidiaries or affiliates) terminates as a result of the death or Permanent
Disability of the Management Stockholder, then the applicable Management Stockholder Entity, shall,
for 365 days (the “Put Period”) following the date of such termination for death or
Permanent Disability, have the right to:

     (i) With respect to Stock, sell to the Company, and the Company shall be required to
purchase, on one occasion, all of the shares of Stock then held by the applicable Management
Stockholder Entities at a per share price equal to Fair Market Value on the Repurchase
Calculation Date (the “Section 6 Repurchase Price”);

     (ii) With respect to any outstanding Options, sell to the Company, and the Company
shall be required to purchase, on one occasion, all of the exercisable Options then held by
the applicable Management Stockholder Entities for an amount equal to the product of (x) the
excess, if any, of the Section 6 Repurchase Price over the Option Exercise Price and (y) the
number of Exercisable Option Shares, which Options shall be terminated in exchange for such
payment. In the event the Management Stockholder Entity elects to sell under this Section
6(a)(ii) and the foregoing Option Excess Price is zero or a negative number, all outstanding
exercisable Options granted to the Management Stockholder shall be automatically terminated
without any payment in respect thereof; and

     (iii) Request a statement of the Fair Market Value as of the date of the Redemption
Notice.

          (b) In the event the applicable Management Stockholder Entities intend to exercise their
rights pursuant to Section 6(a), such Management Stockholder Entities shall send written notice to
the Company, at any time during the Put Period, of their intention to sell shares of Stock in
exchange for the payment referred to in Section 6(a)(i) and/or to sell such Options in exchange for
the payment referred to in Section 6(a)(ii) and shall indicate the number of shares of Stock to be
sold and the number of Options to be sold with payment in respect thereof (the “Redemption
Notice”). The completion of the purchases shall take place at the principal office of the
Company on the tenth business day after the giving of the Redemption Notice. The applicable
Repurchase Price (including any payment with respect to the Options as described above) shall be
paid by delivery to the applicable Management Stockholder Entities, at the option of the Company,
of a certified bank check or checks in the appropriate amount payable to the order of each of the
applicable Management Stockholder Entities (or by wire transfer of immediately available funds, if
the Management Stockholder Entities provide to the Company wire transfer instructions) against
delivery of certificates or other instruments representing the Stock so purchased and appropriate
documents cancelling the Options so terminated appropriately endorsed or executed by the applicable
Management Stockholder Entities or any duly authorized representative.

10

 

          (c) Notwithstanding anything in this Section 6 to the contrary, if there exists and is
continuing a default or an event of default on the part of the Company or any subsidiary of the
Company under any loan, guarantee or other agreement under which the Company or any subsidiary of
the Company has borrowed money or if the repurchase referred to in Section 6(a) (or Section 7, as
the case may be) would result in a default or an event of default on the part of the Company or any
subsidiary of the Company under any such agreement or if a repurchase would not be permitted under
Section 170 of the Delaware General Corporation Law (the “DGCL”) or would otherwise violate
the DGCL or any federal or state securities laws or regulations (or if the Company reincorporates
in another state, the business corporation law of such state) (each such occurrence being an
“Event”), the Company shall not be obligated to repurchase any of the Stock or the Options
from the applicable Management Stockholder Entities to the extent prohibited by the Event for cash
but instead, with respect to such portion with respect to which cash settlement is prohibited, will
satisfy its obligations with respect to the Management Stockholder Entities’ exercise of their
rights under Section 6(a) by delivering to the applicable Management Stockholder Entity a note with
a principal amount equal to the amount payable under this Section 6 that was not paid in cash,
having terms acceptable to the Company’s lenders and permitted under the Company’s debt instruments
but which in any event (i) shall be mandatorily repayable to the extent that an Event no longer
prohibits the payment of cash to the applicable Management Stockholder Entity pursuant to this
Agreement; and (ii) shall bear interest at a rate equal to the effective rate of interest in
respect of the Company’s U.S. dollar-denominated subordinated public debt securities (including any
original issue discount). Notwithstanding the foregoing and subject to Section 7(d), if an Event
exists and is continuing for ninety (90) days, the Management Stockholder Entities shall be
permitted by written notice to rescind any Redemption Notice with respect to that portion of the
Stock and Options repurchased by the Company from the Management Stockholder Entities pursuant to
this Section 6 with the note described in the foregoing sentence, provided that, upon such
rescission, such note shall be immediately canceled without any action on the part of the Company
or the Management Stockholder Entities and, notwithstanding anything herein or in such note to the
contrary, the Company shall have no obligation to pay any amounts of principal or interest
thereunder.

          (d) Effect of Change in Control. Notwithstanding anything in this Agreement to the contrary,
except for any payment obligation of the Company which has arisen prior to the occurrence of a
Change in Control, this Section 6 shall terminate and be of no further force or effect upon the
occurrence of such Change in Control.

	 	7.	 	The Company’s Option to Purchase Stock and Options of the
Management Stockholder Upon Certain Terminations of Employment.

          (a) Termination for Cause by the Company, Termination by the Management Stockholder without
Good Reason (other than due to his death, Permanent Disability or Retirement) and other Call
Events. If, prior to the consummation of the IPO, (i) the Management Stockholder’s active
employment with the Company (or, if applicable, its subsidiaries or Affiliates) is terminated by
the Company (or, if applicable, its subsidiaries or affiliates) for Cause or (ii) the Management
Stockholder’s active employment with the Company (or, if applicable, its subsidiaries or
Affiliates) is terminated by the Management Stockholder without Good Reason (other than due to his
death or Permanent Disability) after notice from the Company of such impermissible transfer and a
reasonable opportunity to cure

11

 

such transfer (each, a “Section 7(a) Call Event”), then, subject to the provisions of
Section 7(g):

               (A) With
respect to Purchased Stock, Rollover Stock and Option Stock issued in
respect of Rollover Options, the Company may purchase all or any portion of the shares
of Purchased Stock, Rollover Stock and Option Stock issued in respect
of Rollover Options then held by the applicable Management Stockholder Entities at a per share
purchase price equal to Fair Market Value on the Repurchase Calculation Date. Notwithstanding the
foregoing, this clause (A) shall not confer any rights to the Company pursuant to a Section 7(a)
Call Event specified in clause (ii) of Section 7(a) that occurs after the fifth anniversary of the
Closing Date;

               (B) With respect to Option Stock issued in respect of New Options, the Company may purchase
all or any portion of the shares of such Option Stock then held by the applicable Management
Stockholder Entities at a per share purchase price (such price, the “Option Stock Call
Price”) equal to the lesser of (x) the applicable price paid for such Option Stock (which shall
be the Base Price for Option Stock issued in respect of New Options granted on the Closing Date)
and (y) Fair Market Value on the Repurchase Calculation Date. Notwithstanding the foregoing, in
the event the Company elects to repurchase under this Section 7(a)(B) pursuant to a Section 7(a)
Call Event specified in clause (ii) of Section 7(a) which occurs on or after the fifth anniversary
of the Closing Date, the purchase price shall be the Fair Market Value on the Repurchase
Calculation Date;

               (C) With respect to Rollover Options, in the event of a termination described in clause (i) of
Section 7(a) above or clause (ii) of Section 7(a) so long as the termination under clause (ii)
occurs prior to the fifth anniversary of the Closing Date, the Company may purchase all or any
portion of the Rollover Options held by the applicable Management Stockholder Entities for an
amount equal to the product of (x) the excess, if any, of the price equal to Fair Market Value on
the Repurchase Calculation Date over the Option Exercise Price and (y) the number of Exercisable
Option Shares (solely relating to Rollover Options), which Rollover Options shall be terminated in
exchange for such payment. In the event the Company elects to repurchase under this Section
7(a)(C) and the foregoing Option Excess Price is zero or a negative number, all outstanding
exercisable Rollover Options shall be automatically terminated without any payment in respect
thereof. Notwithstanding the foregoing, this clause (C) shall not confer any rights to the Company
pursuant to a Section 7(a) Call Event specified in clause (ii) of Section 7(a) that occurs after
the fifth anniversary of the Closing Date; and

               (D) With respect to New Options, in the event of a termination described in clause (ii) of
Section 7(a) above, the Company may purchase all or any portion of the exercisable New Options held
by the applicable Management Stockholder Entities for an amount equal to the product of (x) the
excess, if any, of the Option Stock Call Price over the Option Exercise Price and (y) the number of
Exercisable Option Shares (solely relating to New Options), which New Options shall be terminated
in exchange for such payment. In the event the Company elects to repurchase under this Section
7(a)(D) and the foregoing Option Excess Price is zero or a negative number, all outstanding
exercisable New Options shall be automatically terminated without any payment in respect thereof.
Notwithstanding the foregoing, in the event the Company elects to repurchase under this Section
7(a)(D) pursuant to a Section 7(a) Call Event specified in clause (ii) of Section 7(a) which occurs
on or after the fifth anniversary of the Closing Date, the purchase price shall be the Fair Market
Value on the Repurchase Calculation Date.

12

 

          (b) Termination without Cause by the Company (other than due to his death or Permanent
Disability), and Termination by the Management Stockholder with Good Reason. Except as otherwise
provided herein, if, prior to the consummation of the IPO, the Management Stockholder’s active
employment with the Company (or, if applicable, its subsidiaries or Affiliates) is terminated (i)
by the Company (or, if applicable, its subsidiaries or Affiliates) without Cause (other than due to
his death or Permanent Disability), or (ii) by the Management Stockholder with Good Reason or due
to the Management Stockholder’s Retirement (each, a “Section 7(b) Call Event”) then,
subject to the provisions of Section 7(g):

               (A) With respect to the Option Stock issued in respect of New Options, the Company may
purchase all or any portion of the shares of such Option Stock then held by the applicable
Management Stockholder Entities at a per share purchase price equal to Fair Market Value on the
Repurchase Calculation Date; and

               (B) With respect to New Options, the Company may purchase all or any portion of the
exercisable New Options held by the applicable Management Stockholder Entities for an amount equal
to the product of (x) the excess, if any, of the Fair Market Value on the Repurchase Calculation
Date of a share of Option Stock underlying such New Options over the Option Exercise Price and (y)
the number of Exercisable Option Shares (solely relating to New Options), which New Options shall
be terminated in exchange for such payment. In the event the Company elects to repurchase under
this Section 7(b)(B) and the foregoing Option Excess Price is zero or a negative number, all
outstanding exercisable New Options shall be automatically terminated without any payment in
respect thereof.

          (c) Termination for Death or Disability. Except as otherwise provided herein, if, prior to
the consummation of the IPO, the Management Stockholder’s employment with the Company (or, if
applicable, its subsidiaries or affiliates) is terminated as a result of the death or Permanent
Disability of the Management Stockholder (each a “Section 7(c) Call Event”), then, subject
to the provisions of Section 7(g):

               (A) With respect to Option Stock issued in respect of New Options, the Company may purchase
all or any portion of the shares of such Option Stock then held by the applicable Management
Stockholder Entities at a per share purchase price equal to Fair Market Value on the Repurchase
Calculation Date; and

               (B) With respect to New Options, the Company may purchase all or any portion of the
exercisable New Options for an amount equal to the product of (x) the excess, if any, of Fair
Market Value on the Repurchase Calculation Date of a share of Option Stock underlying such New
Options over the Option Exercise Price and (y) the number of Exercisable Option Shares (solely
relating to New Options), which New Options shall be terminated in exchange for such payment. In
the event the Company elects to repurchase under this Section 7(c)(B) and the foregoing Option
Excess Price is zero or a negative number, all outstanding exercisable stock options granted to the
Management Stockholder under the Option Plan shall be automatically terminated without any payment
in respect thereof.

          (d) Call Notice. The Company shall have a period (the “Call Period”) of one hundred
twenty (120) days from the date of any Call Event (or, if later, with respect to a Section 7(a)
Call Event, the date after discovery of, and the applicable cure period for, an impermissible
transfer constituting a Section 7(a) Call Event) in which to give notice in

13

 

writing to the Management Stockholder of its election to exercise its rights and obligations
pursuant to this Section 7 (“Repurchase Notice”). Notwithstanding the foregoing, the
Company reserves the right to extend the Call Period to ensure that the Management Stockholder
Entities are able to comply with the six-month stock ownership holding period identified in Section
7(g) below, but which shall in no event extend beyond thirty (30) days after the date that such
six-month holding period expires. The completion of the purchases pursuant to the
foregoing shall take place at the principal office of the Company on the tenth business day after
the giving of the Repurchase Notice. The applicable Repurchase Price (including any payment with
respect to the Options as described in this Section 7) shall be paid by delivery to the applicable
Management Stockholder Entities of a certified bank check or checks in the appropriate amount
payable to the order of each of the applicable Management Stockholder Entities (or by wire transfer
of immediately available funds, if the Management Stockholder Entities provide to the Company wire
transfer instructions) against delivery of certificates or other instruments representing the Stock
so purchased and appropriate documents canceling the Options so terminated, appropriately endorsed
or executed by the applicable Management Stockholder Entities or any duly authorized
representative.

          (e) Use of Note to Satisfy Call Payment. Notwithstanding any other provision of this Section
7 to the contrary, if there exists and is continuing any Event, the Company will, to the extent it
has exercised its rights to purchase Stock or Options pursuant to this Section 7, in order to
complete the purchase of any Stock or Options pursuant to this Section 7, deliver to the applicable
Management Stockholder Entities (i) a cash payment for any amounts payable pursuant to this Section
7 that would not cause an Event and (ii) a note having the same terms as that provided in Section
6(c) above with a principal amount equal to the amount payable but not paid in cash pursuant to
this Section 7 due to the Event. Notwithstanding the foregoing, if an Event exists and is
continuing for ninety (90) days, the Management Stockholder Entities shall be permitted by written
notice to cause the Company to rescind any Repurchase Notice with respect to that portion of the
Stock and Options repurchased by the Company from the Management Stockholder Entities pursuant to
this Section 7 with the note described in the foregoing sentence, provided that, upon such
rescission, such note shall be immediately canceled without any action on the part of the Company
or the Management Stockholder Entities and, notwithstanding anything herein or in such note to the
contrary, the Company shall have no obligation to pay any amounts of principal or interest
thereunder, and provided further that the Company shall have another thirty (30)
days from the date the Event ceases to exist to give another Repurchase Notice on the terms
applicable to the first Repurchase Notice.

          (f) Effect of Change in Control. Notwithstanding anything in this Agreement to the contrary,
except for any payment obligation of the Company which has arisen prior to the occurrence of a
Change in Control, this Section 7 shall terminate and be of no further force or effect upon the
occurrence of such Change in Control.

          (g) Effect of Accounting Principles. Notwithstanding anything set forth in Section 6 or 7 to
the contrary, in the event that it is determined by the Board that any of the provisions of either
of Section 6 or 7 would result in any of the Options being classified as a liability as
contemplated by FASB Statement No. 123R, Share-Based Payment, including any amendments and
interpretations thereto, then the following terms shall apply:

     (i) Any shares of Stock that are to be purchased by the Company pursuant to Section 6
or 7, as applicable, may only be so purchased if and when such shares have

14

 

     been held by the applicable Management Stockholder Entities for at least six months;
and

     (ii) With respect to any exercisable Options, upon the occurrence of the applicable
event identified in Section 6 giving rise to the Management Stockholder’s rights thereunder
or a Call Event, the Management Stockholder Entities may be required by the Company to
elect, in accordance with the terms of the relevant Stock Option Agreement, to receive from
the Company, on one occasion, in exchange for all of the exercisable Options then held by
the applicable Management Stockholder Entities, if any, a number of shares of Stock equal to
the quotient of (x) the product of (A) the excess, if any, of the Fair Market Value over the
Option Exercise Price and (B) the number of shares then acquirable on exercise,
divided by (y) the Fair Market Value, which Options shall be terminated in
exchange for such payment of shares of Stock (such shares of Stock, the “Net Settled
Stock”). (In the event the foregoing Option Excess Price is zero or a negative number,
all outstanding exercisable Options shall be automatically terminated without any payment in
respect thereof.) Upon the occurrence of such net settlement of all exercisable Options,
the Put Period or the Call Period, as applicable, shall be deemed to be the period that is
30 days following the date that is six months after the receipt by the applicable Management
Stockholder Entities of the Net Settled Stock, during which time the Company may, on
delivery of Repurchase Notice (or upon delivery of a Redemption Notice), purchase (or be
required to purchase in the case of Section 6) all (in the case of a purchase pursuant to
Section 6) or all or any portion (in the case of a purchase pursuant to Section 7) of the
Net Settled Stock held by the applicable Management Stockholder Entities, at a per share
price equal to the applicable Repurchase Price for Option Stock identified in Section 6 or
Section 7, as applicable.

          8. Adjustment of Repurchase Price; Effect of Accounting Principles; Definitions.

          (a) Adjustment of Repurchase Price. In determining the applicable repurchase price of the
Stock and Options, as provided for in Sections 6 and 7, above, appropriate adjustments shall be
made for any stock dividends, splits, combinations, recapitalizations or any other adjustment in
the number of outstanding shares of Stock in order to maintain, as nearly as practicable, the
intended operation of the provisions of Sections 6 and 7.

          (b) Definitions. All capitalized terms used in this Agreement and not defined herein shall
have such meaning as such terms are defined in the Option Plan. Terms used herein and as listed
below shall be defined as follows:

     “Act” shall have the meaning set forth in Section 2(a)(i) hereof.

     “Affiliate” means with respect to any Person, any entity directly or indirectly
controlling, controlled by or under common control with such Person.

     “Aggregate Investor Ownership Share Number” shall have the meaning set forth in
Section 3(a)(i) hereof.

     “Agreement” shall have the meaning set forth in the introductory paragraph.

15

 

     “Applicable Rate” shall mean at any date of determination, the interest rate that the
Company is then paying on its most current working capital bank financing.

     “Base Price” shall have the meaning set forth in Section 1(a) hereof.

     “Board” shall mean the board of directors of the Company.

     “Call Events” shall mean, collectively, Section 7(a) Call Events, Section 7(b) Call
Events, and Section 7(c) Call Events.

     “Call Notice” shall have the meaning set forth in Section 7(d) hereof.

     “Call Period” shall have the meaning set forth in Section 7(d) hereof.

     “Cause” shall mean “Cause” as such term may be defined in any employment agreement or
change in control agreement in effect at the time of termination of employment between the
Management Stockholder and the Company or any of its subsidiaries or Affiliates; or, if there is no
such employment or change in control agreement, “Cause” shall mean (i) the Management Stockholder’s
willful and continued failure (other than by reason of a Permanent Disability) to perform his or
her material duties with respect to the Company or its subsidiaries which continues beyond ten (10)
business days after a written demand for substantial performance is delivered to the Management
Stockholder by the Company (the “Cure Period”), (ii) the willful or intentional engaging by
the Management Stockholder in material misconduct that causes material and demonstrable injury,
monetarily or otherwise, to the Company, the Investors or their respective Affiliates, (iii)
conviction of, or a plea of nolo contendere to, a crime constituting (A) a felony under the laws of
the United States or any state thereof or (B) a misdemeanor for which a sentence of more than six
months’ imprisonment is imposed, or (iv) a willful and material breach by the Management
Stockholder of this Agreement or related agreements, or the Management Stockholder’s engaging in
any action in breach of the restrictive covenants made by the Management Stockholder under this
Agreement or any employment agreement between the Management Stockholder and the Company or any of
its subsidiaries, which continues beyond the Cure Period (to the extent that, in the Board’s
reasonable judgment, such breach can be cured).

     “Change in Control” means, in one or a series of transactions, (i) the transfer or
sale of all or substantially all of the assets of the Company (or any direct or indirect parent of
the Company) to an Unaffiliated Person; (ii) a merger, consolidation, recapitalization or
reorganization of the Company (or any direct or indirect parent of the Company) with or into
another Unaffiliated Person, or a transfer or sale of the voting stock of the Company (or any
direct or indirect parent of the Company), an Investor, or any Affiliate of any of the Investors to
an Unaffiliated Person, in any such event that results in more than 50% of the common stock of the
Company (or any direct or indirect parent of the Company) or the resulting company being held by an
Unaffiliated Person; or (iii) a merger, consolidation, recapitalization or reorganization of the
Company (or any direct or indirect parent of the Company) with or into another Unaffiliated Person,
or a transfer or sale by the Company (or any direct or indirect parent of the Company), an Investor
or any Affiliate of the Investors, in any such event after which the Investors and their Affiliates
(x) collectively own less than 15% of the Common Stock and (y) collectively have the ability to
appoint less than 50% of the directors to the Board (or any resulting company after a merger). For
purposes of this definition, the term “Unaffiliated Person” means a Person or Group who is not an
Investor, an

16

 

Affiliate of any of the Investors, or an entity in which any Investor holds, directly or
indirectly, a majority of the economic interest in such entity.

     “Closing Date” shall mean the date of closing of the Merger pursuant to the Merger
Agreement.

     “Common Stock” shall have the meaning set forth in the third “whereas” paragraph.

     “Company” shall have the meaning set forth in the introductory paragraph.

     “Confidential Information” shall mean all non-public information concerning trade
secret, know-how, software, developments, inventions, processes, technology, designs, the financial
data, strategic business plans or any proprietary or confidential information, documents or
materials in any form or media, including any of the foregoing relating to research, operations,
finances, current and proposed products and services, vendors, customers, advertising and
marketing, and other non-public, proprietary, and confidential information of the Restricted Group.

     “Custody Agreement and Power of Attorney” shall have the meaning set forth in Section
10(e) hereof.

     “DGCL” shall have the meaning set forth in Section 6(c) hereof.

     “Effective Time” shall have the meaning set forth in the Merger Agreement.

     “Event” shall have the meaning set forth in Section 6(c) hereof.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended (or any
successor section thereto).

     “Exercisable Option Shares” shall mean the shares of Common Stock that, at the time
that Redemption Notice or Repurchase Notice is delivered (as applicable), could be purchased by the
Management Stockholder upon exercise of his or her outstanding and exercisable Options.

     “Fair Market Value” shall mean the fair market value of the Common Stock on any given
date, as determined reasonably and in good faith by the Board after consultation with the Chief
Executive Officer of the Company.

     “Good Reason” shall mean “Good Reason” as such term may be defined in any employment
agreement or change-in-control agreement in effect at the time of termination of employment between
the Management Stockholder and the Company or any of its subsidiaries or Affiliates, or, if there
is no such employment or change-in-control agreement, “Good Reason” shall mean (i) (A) a reduction
in the Management Stockholder’s base salary (other than a general reduction in base salary that
affects all similarly situated employees (defined as all employees within the same pay grade as
that of the Management Stockholder) in substantially the same proportions that the Board implements
in good faith after consultation with the Chief Executive Officer and Chief Operating Officer of
the Company); (B) a reduction in the Management Stockholder’s annual incentive compensation
opportunity; or (C) the reduction of benefits payable to the Management Stockholder under the
Company’s Supplemental Executive Retirement Plan (if the Management Stockholder is a participant in
such plan), in each case other than any isolated, insubstantial and inadvertent

17

 

failure by the Company that is not in bad faith and is cured within ten (10) business days
after the Management Stockholder gives the Company written notice of such event, provided
that the events described in (i)(A) or (i)(B) above will not be deemed to give rise to Good Reason
if employment is terminated, but Management Stockholder declines an offer of employment involving a
loss of compensation of less than 15% from a purchaser, transferee, outsourced vendor, new
operating entity or affiliated employer; (ii) a substantial diminution in the Management
Stockholder’s title, duties and responsibilities, other than any isolated, insubstantial and
inadvertent failure by the Company that is not in bad faith and is cured within ten (10) business
days after the Management Stockholder gives the Company written notice of such event; or (iii) a
transfer of the Management Stockholder’s primary workplace to a location that is more than twenty
(20) miles from his or her workplace as of the date of this Agreement, provided that Good
Reason shall not be deemed to occur merely because Management Stockholder’s willful decision to
change position or status within the Company or any of its subsidiaries causes one or more of the
occurrences described in (i), (ii), or (iii) to come about.

     “Group” shall mean “group,” as such term is used for purposes of Section 13(d) or
14(d) of the Exchange Act.

     “Hercules Holding” shall have the meaning set forth in the first “whereas” paragraph.

     “HoldCo Company Ownership Percentage” shall have the meaning set forth in the third
“whereas” paragraph.

     “Investor Transfer Ratio” shall have the meaning set forth in Section 3(a)(iii)
hereof.

     “Investors” shall have the meaning set forth in the second “whereas” paragraph.

     “Investors HoldCo Ownership Percentage” shall have the meaning set forth in the second
“whereas” paragraph.

     “IPO” means the initial Public Offering by the Company (or any successor thereto).

     “Management Stockholder” shall have the meaning set forth in the introductory
paragraph.

     “Management Stockholder Entities” shall mean the Management Stockholder’s Trust, the
Management Stockholder and the Management Stockholder’s Estate, collectively.

     “Management Stockholder’s Estate” shall mean the conservators, guardians, executors,
administrators, testamentary trustees, legatees or beneficiaries of the Management Stockholder.

     “Management Stockholders Transfer Ratio” shall have the meaning set forth in Section
3(a)(ii) hereof.

     “Management Stockholder’s Trust” shall mean a partnership, limited liability company,
corporation, trust, private foundation or custodianship, the beneficiaries of which may include
only the Management Stockholder, his or her spouse (or ex-spouse) or his or her lineal descendants
(including adopted) or, if at any time after any such transfer there shall be no then living spouse
or lineal descendants, then to the ultimate beneficiaries of any such trust or to the estate of a
deceased beneficiary.

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     “Merger” shall have the meaning set forth in the first “whereas” paragraph.

     “Merger Agreement” shall have the meaning set forth in the first “whereas” paragraph.

     “Merger Sub” shall have the meaning set forth in the first “whereas” paragraph.

     “New Options” shall have the meaning set forth in the fourth “whereas” paragraph.

     “New Option Agreement” shall have the meaning set forth in the fourth “whereas”
paragraph.

     “Notice” shall have the meaning set forth in Section 10(b) hereof.

     “Offered Stock” shall have the meaning set forth in Section 5(a) hereof.

     “Options” shall have the meaning set forth in the fourth “whereas” paragraph.

     “Option Excess Price” shall mean the aggregate amount paid or payable by the Company
in respect of Exercisable Option Shares, as determined pursuant to Section 6 or 7, as applicable.

     “Option Exercise Price” shall mean the then-current weighted average exercise price of
the shares of Common Stock covered by the applicable Options.

     “Option Plan” shall have the meaning set forth in the fourth “whereas” paragraph.

     “Option Rollover Agreement” shall have the meaning set forth in the fourth “whereas”
paragraph.

     “Option Stock” shall have the meaning set forth in Section 2(a) hereof.

     “Option Stock Call Price” shall have the meaning set forth in Section 7(a)(B) hereof.

     “Other Management Stockholders” shall have the meaning set forth in the fifth
“whereas” paragraph.

     “Other Management Stockholders Agreements” shall have the meaning set forth in the
fifth “whereas” paragraph.

     “Participating Buyer” shall have the meaning set forth in Section 5(b).

     “Parties” shall have the meaning set forth in the introductory paragraph.

     “Permanent Disability” shall mean “Disability” as such term is defined in any
employment agreement between the Management Stockholder and the Company or any of its Subsidiaries,
or, if there is no such employment agreement, shall mean “Disability” as defined in the long-term
disability plan of the Company.

     “Permitted Transfer” shall have the meaning set forth in Section 3(a).

     “Person” shall mean “person,” as such term is used for purposes of Section 13(d) or
14(d) of the Exchange Act.

19

 

     “Piggyback Registration Rights” shall have the meaning set forth in Section 10(a)
hereof.

     “Pre-Emptive Rights Holders” shall have the meaning set forth in Section 5(a) hereof.

     “Proposed Registration” shall have the meaning set forth in Section 10(b) hereof.

     “Public Offering” shall mean the sale of shares of Common Stock to the public
subsequent to the date hereof pursuant to a registration statement under the Act which has been
declared effective by the SEC (other than a registration statement on Form S-4, S-8 or any other
similar form).

     “Purchased Stock” shall have the meaning set forth in the fourth “whereas” paragraph.

     “Put Period” shall have the meaning set forth in Section 6(a) hereof.

     “Redemption Notice” shall have the meaning set forth in Section 6(b) hereof.

     “Registration Rights Agreement” shall have the meaning set forth in Section 10(a)
hereof.

     “Repurchase Calculation Date” shall mean the last day of the month preceding the later
of (i) the month in which the event giving rise to the right to repurchase occurs, or, (ii) solely
in the event that Section 7(g) applies, the last day of the applicable six-month holding period
referenced therein.

     “Repurchase Notice” shall have the meaning set forth in Section 7(d) hereof.

     “Repurchase Price” shall mean the amount to be paid in respect of the Stock and
Options to be purchased by the Company pursuant to Section 6(a), Section 7(a), 7(b), or 7(c), as
applicable.

     “Request” shall have the meaning set forth in Section 10(b) hereof.

     “Restricted Group” shall mean, collectively, the Company, its subsidiaries, the
Investors and their respective affiliates.

     “Retirement” shall mean the Management Stockholder’s resignation (other than for Good
Reason) from service with the Company or any of its subsidiaries or affiliates (i) after attaining
65 years of age or (ii) after attaining 60 years of age and completing thirty-six (36) months of
service following the Closing Date.

     “ROFO Notice” shall have the meaning set forth in Section 4(a) hereof.

     “ROFO Transferee” shall have the meaning set forth in Section 4(a) hereof.

     “Rollover Options” shall have the meaning set forth in the fourth “whereas” paragraph.

     “Rollover Stock” shall have the meaning set forth in the fourth “whereas” paragraph.

20

 

     “Sale Participation Agreement” shall mean that certain sale participation agreement
entered into by and between the Management Stockholder and the Investors dated as of the date
hereof.

     “SEC” shall mean the Securities and Exchange Commission.

     “Senior Management Stockholder” shall mean any of the Management Stockholder or Other
Management Stockholders who have been designated as such on Schedule I hereto or the
corresponding schedule of the Other Management Stockholders Agreements, as applicable.

     “Stock” shall have the meaning set forth in Section 2(a) hereof.

     “Stock Option Agreements” shall have the meaning set forth in the fourth “whereas”
paragraph.

     “transfer” shall have the meaning set forth in Section 2(a) hereof.

          9. The Company’s Representations and Warranties and Covenants.

          (a) The Company represents and warrants to the Management Stockholder that (i) this Agreement
has been duly authorized, executed and delivered by the Company and is enforceable against the
Company in accordance with its terms and (ii) the Stock, when issued and delivered in accordance
with the terms hereof and the other agreements contemplated hereby, will be duly and validly
issued, fully paid and nonassessable.

          (b) If the Company becomes subject to the reporting requirements of Section 12 of the Exchange
Act, the Company will file the reports required to be filed by it under the Act and the Exchange
Act and the rules and regulations adopted by the SEC thereunder, to the extent required from time
to time to enable the Management Stockholder to sell shares of Stock without registration under the
Exchange Act within the limitations of the exemptions provided by (A) Rule 144 under the Act, as
such Rule may be amended from time to time, or (B) any similar rule or regulation hereafter adopted
by the SEC. Notwithstanding anything contained in this Section 9(b), the Company may de-register
under Section 12 of the Exchange Act if it is then permitted to do so pursuant to the Exchange Act
and the rules and regulations thereunder and, in such circumstances, shall not be required hereby
to file any reports which may be necessary in order for Rule 144 or any similar rule or regulation
under the Act to be available. Nothing in this Section 9(b) shall be deemed to limit in any manner
the restrictions on transfers of Stock contained in this Agreement.

          (c) The Company will not agree to any amendment of the terms of the credit agreement entered
into on the Closing Date, or to any corresponding provision in any successor or equivalent debt
agreement, that imposes any limits on the Company’s permission thereunder to repurchase stock, or
make payments on any note, in each case under Section 6(c) or 7(e) of this Agreement, that are
materially more restrictive than such provision under such credit agreement as in effect on the
Closing Date if, at or prior to the time of such agreement, restrictions corresponding and
proportionate thereto have not also been imposed thereunder on the payment of cash dividends on the
Common Stock.

          (d) The
Company agrees to use its reasonable best efforts to cause Common
Stock held by Management Stockholders to be converted into (or be
treated in a similar way to) interests of Hercules Holding (or any
other holding company above the Company) in the event that Hercules
Holding (or such other holding company) engages in a transaction that
would give rise to “tag along rights” under Section 1 of
the Sale Participation Agreement or “Piggyback Registration
Rights” under Section 10 hereto if the transaction had instead
been done by the Company.

          10. “Piggyback” Registration Rights. Effective after the occurrence of the initial
Public Offering:

21

 

          (a) A Senior Management Stockholder hereby agrees to be bound by all of the terms, conditions
and obligations of the piggyback registration rights contained in Section 3 of the Registration
Rights Agreement (the “Registration Rights Agreement”) entered into by and among the
Company and investors party thereto (the “Piggyback Registration Rights”), as in effect on
the date hereof (subject to any amendments thereto to which the Senior Management Stockholder has
agreed in writing to be bound), and, if any of the Investors are selling stock, shall have all of
the rights and privileges of the Piggyback Registration Rights (including, without limitation, the
right to participate in the initial Public Offering and any rights to indemnification and/or
contribution from the Company and/or the Investors), in each case as if the Senior Management
Stockholder were an original party (other than the Company) to the Registration Rights Agreement,
subject to applicable and customary underwriter restrictions; provided, however,
that at no time shall the Senior Management Stockholder have any rights to request registration
under Section 2 of the Registration Rights Agreement. All Stock purchased or held by the
applicable Management Stockholder Entities pursuant to this Agreement shall be deemed to be
“Registrable Securities” as defined in the Registration Rights Agreement.

          (b) In the event of a sale of Common Stock by any of the Investors in accordance with the
terms of the Registration Rights Agreement, the Company will promptly notify each Senior Management
Stockholder or any other Management Stockholder to whom the Board, after consultation with the
Chief Executive Officer of the Company, has decided to extend the Piggyback Registration Rights, in
writing (a “Piggyback Notice”) of any proposed registration (a “Proposed
Registration”), which Piggyback Notice shall include: the principal terms and conditions of the
proposed registration, including (A) the number of the shares of Common Stock to be sold, (B) the
fraction expressed as a percentage, determined by dividing the number of shares of Common Stock to
be sold by the Investors by the total number of shares held by the Investors selling the shares of
Common Stock, (C) the proposed per share purchase price (or an estimate thereof), and (D) the
proposed date of sale. If within fifteen (15) days of the receipt by the Senior Management
Stockholder or Management Stockholder, as the case may be, of such Piggyback Notice, the Company
receives from the applicable Management Stockholder Entities of the Senior Management Stockholder
or Management Stockholder, as the case may be, a written request (a “Request”) to register
shares of Stock held by the applicable Management Stockholder Entities (which Request will be
irrevocable unless otherwise mutually agreed to in writing by the Senior Management Stockholder or
Management Stockholder, if any, and the Company), shares of Stock will be so registered as provided
in this Section 10; provided, however, that for each such registration statement
only one Request, which shall be executed by the applicable Management Stockholder Entities, may be
submitted for all Registrable Securities held by the applicable Management Stockholder Entities.

          (c) The maximum number of shares of Stock which will be registered pursuant to a Request will
be the lowest of (i) the number of shares of Stock then held by the Management Stockholder
Entities, including all shares of Stock which the Management Stockholder Entities are then entitled
to acquire under an unexercised Option to the extent then exercisable, multiplied by a fraction,
the numerator of which is the aggregate number of shares of Stock being sold by the Investors and
any affiliated or unaffiliated investment partnerships and investment limited liability companies
investing with the Investors and the denominator of which is the aggregate number of shares of
Stock owned by the Investors and any investment partnerships and investment limited liability
companies investing with the Investors or (ii) the maximum number of shares of Stock which the
Company can register in

22

 

connection with such Request in the Proposed Registration without adverse effect on the
offering in the view of the managing underwriters (reduced pro rata as more fully described in
subsection (d) of this Section 10 or (iii) the maximum number of shares which the Senior Management
Stockholder (pro rata based upon the aggregate number of shares of Stock the Senior Management
Stockholder and all Other Management Stockholders who are Senior Management Stockholders have
requested to be registered) is permitted to register under the Piggyback Registration Rights.

          (d) If a Proposed Registration involves an underwritten offering and the managing underwriter
advises the Company in writing that, in its opinion, the number of shares of Stock requested to be
included in the Proposed Registration exceeds the number which can be sold in such offering, so as
to be likely to have an adverse effect on the price, timing or distribution of the shares of Stock
offered in such Public Offering as contemplated by the Company, then, unless the managing
underwriter advises that marketing factors require a different allocation, the Company will include
in the Proposed Registration (i) first, 100% of the shares of Stock the Company proposes to sell
and (ii) second, to the extent of the number of shares of Stock requested to be included in such
registration which, in the opinion of such managing underwriter, can be sold without having the
adverse effect referred to above, the number of shares of Stock which the selling Investors and any
affiliated or unaffiliated investment partnerships and investment limited liability companies
investing with the selling Investors, the Senior Management Stockholder and all Other Management
Stockholders who are Senior Management Stockholders and any other Persons who are entitled to
piggyback or incidental registration rights in respect of Stock (together, the “Holders”)
have requested to be included in the Proposed Registration, such amount to be allocated pro rata
among all requesting Holders on the basis of the relative number of shares of Stock then held by
each such Holder (including upon exercise of all exercisable Options) (provided that any
shares thereby allocated to any such Holder that exceed such Holder’s request will be reallocated
among the remaining requesting Holders in like manner).

          (e) Upon delivering a Request a Senior Management Stockholder or other Management Stockholder
having Piggyback Registration Rights pursuant to clause (b) of this Section 10 will, if requested
by the Company, execute and deliver a custody agreement and power of attorney having customary
terms and in form and substance reasonably satisfactory to the Company with respect to the shares
of Stock to be registered pursuant to this Section 10 (a “Custody Agreement and Power of
Attorney”). The Custody Agreement and Power of Attorney will provide, among other things, that
the Senior Management Stockholder or Management Stockholder, as the case may be, will deliver to
and deposit in custody with the custodian and attorney-in-fact named therein a certificate or
certificates (to the extent applicable) representing such shares of Stock (duly endorsed in blank
by the registered owner or owners thereof or accompanied by duly executed stock powers in blank)
and irrevocably appoint said custodian and attorney-in-fact as the Senior Management Stockholder’s
or Management Stockholder’s agent and attorney-in-fact with full power and authority to act under
the Custody Agreement and Power of Attorney on the Senior Management Stockholder’s or Management
Stockholder’s behalf with respect to the matters specified therein.

          (f) If the number of shares of Stock that the Senior Management Stockholder is permitted to
include in a Request pursuant to this Section 10 is limited by the fact that the Options are not
exercisable at the time of such Proposed Registration, then at such time as the Options become
exercisable (in whole or in part) and at any time thereafter,

23

 

the Senior Management Stockholder shall be entitled to register for public sale such
additional number of shares of Stock as the Senior Management Stockholder or Management Stockholder
could have registered at the time of the Proposed Registration.

          (g) Subject to the transfer restrictions set forth in Section 3, upon the occurrence of a sale
of Common Stock by the Investors in a Public Offering and at all times thereafter, the Company
shall maintain a registration statement on Form S-8 filed with the SEC that covers all shares of
Stock that the Management Stockholder could register in a public sale, in order to allow the
Management Stockholder to exercise his rights set forth in Section 10(f).

          (h) The Management Stockholder agrees that he will execute such other agreements as the
Company may reasonably request to further evidence the provisions of this Section 10, including
reasonable and customary lock-up agreements.

          11. Additional Rights of Management Stockholders. Notwithstanding anything herein to
the contrary, in the event that the Company receives notice of any event giving rise to any of the
tag-along, pre-emptive or piggyback registration rights of Senior Management Stockholders in
Sections 5 or 10 hereof or in the Sale Participation Agreement, the Board shall promptly (and in
event within such period of time to allow the Management Stockholder to exercise such right, if
applicable) after being informed of such notice consult with the Chief Executive Officer of the
Company to determine whether and to what extent any such rights shall be granted to the Management
Stockholder and the Other Management Stockholders who are not Senior Management Stockholders. Any
such grant shall be effective upon, and to the extent set forth in, any applicable resolution
passed by the Board, and the Company shall give prompt notice to the Management Stockholder and the
Other Management Stockholders of the adoption thereof.

          12. [Reserved].

          13. Rights to Negotiate Repurchase Price. Nothing in this Agreement shall be deemed
to restrict or prohibit the Company from purchasing, redeeming or otherwise acquiring for value
shares of Stock or Options from the Management Stockholder, at any time, upon such terms and
conditions, and for such price, as may be mutually agreed upon in writing between the Parties,
whether or not at the time of such purchase, redemption or acquisition circumstances exist which
specifically grant the Company the right to purchase, or the Management Stockholder the right to
sell, shares of Stock or any Options under the terms of this Agreement; provided that no
such purchase, redemption or acquisition shall be consummated, and no agreement with respect to any
such purchase, redemption or acquisition shall be entered into, without the prior approval of the
Board.

          14. Covenant Regarding 83(b) Election. Except as the Company may otherwise agree in
writing, the Management Stockholder hereby covenants and agrees that the Management Stockholder
will make an election provided pursuant to Treasury Regulation Section 1.83-2 with respect to the
Option Stock acquired on exercise of New Options; and the Management Stockholder further covenants
and agrees that he or she will furnish the Company with copies of the forms of election the
Management Stockholder files within thirty (30) days after the date hereof, and within thirty (30)
days after each exercise of the Management Stockholder’s Options and with evidence that each such
election has been filed in a timely manner.

24

 

          15. Notice of Change of Beneficiary. Immediately prior to any transfer of Stock to a
Management Stockholder’s Trust, the Management Stockholder shall provide the Company with a copy of
the instruments creating the Management Stockholder’s Trust and with the identity of the
beneficiaries of the Management Stockholder’s Trust. The Management Stockholder shall notify the
Company as soon as practicable prior to any change in the identity of any beneficiary of the
Management Stockholder’s Trust.

          16. Recapitalizations, etc. The provisions of this Agreement shall apply, to the full
extent set forth herein with respect to the Stock or the Options, to any and all shares of capital
stock of the Company or any capital stock, partnership units or any other security evidencing
ownership interests in any successor or assign of the Company (whether by merger, consolidation,
sale of assets or otherwise) which may be issued in respect of, in exchange for, or substitution of
the Stock or the Options by reason of any stock dividend, split, reverse split, combination,
recapitalization, liquidation, reclassification, merger, consolidation or otherwise.

          17. Management Stockholder’s Employment by the Company. Nothing contained in this
Agreement or in any other agreement entered into by the Company and the Management Stockholder
contemporaneously with the execution of this Agreement (subject to, and except as set forth in, the
applicable provisions of any offer letter, letter of employment provided to the Management
Stockholder by the Company or any employment agreement entered into by and between the Management
Stockholder and the Company or any of its subsidiaries) (i) obligates the Company or any subsidiary
of the Company to employ the Management Stockholder in any capacity whatsoever or (ii) prohibits or
restricts the Company (or any such subsidiary) from terminating the employment of the Management
Stockholder at any time or for any reason whatsoever, with or without Cause, and the Management
Stockholder hereby acknowledges and agrees that neither the Company nor any other person has made
any representations or promises whatsoever to the Management Stockholder concerning the Management
Stockholder’s employment or continued employment by the Company or any subsidiary of the Company.

          18. Binding Effect. The provisions of this Agreement shall be binding upon and accrue
to the benefit of the parties hereto and their respective heirs, legal representatives, successors
and assigns. In the case of a transferee permitted under Section 2(a) or Section 3(a) (other than
clauses (iii) or (iv) thereof) hereof, such transferee shall be deemed the Management Stockholder
hereunder; provided, however, that no transferee (including without limitation,
transferees referred to in Section 2(a) or Section 3(a) hereof) shall derive any rights under this
Agreement unless and until such transferee has delivered to the Company a valid undertaking and
becomes bound by the terms of this Agreement. No provision of this Agreement is intended to or
shall confer upon any Person other than the Parties any rights or remedies hereunder or with
respect hereto.

          19. Amendment. This Agreement may be amended by the Company at any time upon notice
to the Management Stockholder thereof; provided that any amendment (i) that materially
disadvantages the Management Stockholder shall not be effective unless and until the Management
Stockholder has consented thereto in writing and (ii) that disadvantages a class of stockholders in
more than a de minimus way but less than a material way shall require the consent of a majority of
the equity interests held by such affected class of stockholders.

25

 

          20. Closing. Except as otherwise provided herein, the closing of each purchase and
sale of shares of Stock pursuant to this Agreement shall take place at the principal office of the
Company on the tenth business day following delivery of the notice by either Party to the other of
its exercise of the right to purchase or sell such Stock hereunder.

          21. Applicable Law; Jurisdiction; Arbitration; Legal Fees.

          (a) The laws of the State of Delaware applicable to contracts executed and to be performed
entirely in such state shall govern the interpretation, validity and performance of the terms of
this Agreement.

          (b) In the event of any controversy among the parties hereto arising out of, or relating to,
this Agreement which cannot be settled amicably by the parties, such controversy shall be finally,
exclusively and conclusively settled by mandatory arbitration conducted expeditiously in accordance
with the American Arbitration Association rules by a single independent arbitrator. Such
arbitration process shall take place in Nashville, TN. The decision of the arbitrator shall be
final and binding upon all parties hereto and shall be rendered pursuant to a written decision,
which contains a detailed recital of the arbitrator’s reasoning. Judgment upon the award rendered
may be entered in any court having jurisdiction thereof.

          (c) Notwithstanding the foregoing, the Management Stockholder acknowledges and agrees that the
Company, its subsidiaries, the Investors and any of their respective affiliates shall be entitled
to injunctive or other relief in order to enforce the covenant not to compete, covenant not to
solicit and/or confidentiality covenants as set forth in Section 27(a) of this Agreement.

          (d) In the event of any arbitration or other disputes with regard to this Agreement or any
other document or agreement referred to herein, each Party shall pay its own legal fees and
expenses, unless otherwise determined by the arbitrator. If the Management Stockholder
substantially prevails on any of his or her substantive legal claims, then the Company shall
reimburse all legal fees and arbitration fees incurred by the Management Stockholder to arbitrate
the dispute.

          22. Assignability of Certain Rights by the Company. The Company shall have the right
to assign any or all of its rights or obligations to purchase shares of Stock pursuant to Sections
4, 6 and 7 hereof.

          23. Miscellaneous.

          (a) In this Agreement all references to “dollars” or “$” are to United States dollars and the
masculine pronoun shall include the feminine and neuter, and the singular the plural, where the
context so indicates.

          (b) If any provision of this Agreement shall be declared illegal, void or unenforceable by any
court of competent jurisdiction, the other provisions shall not be affected, but shall remain in
full force and effect.

          24. Withholding. The Company or its subsidiaries shall have the right to deduct from
any cash payment made under this Agreement to the applicable Management

26

 

Stockholder Entities any federal, state or local income or other taxes required by law to be
withheld with respect to such payment.

          25. Notices. All notices and other communications provided for herein shall be in
writing. Any notice or other communication hereunder shall be deemed duly given (i) upon
electronic confirmation of facsimile, (ii) one business day following the date sent when sent by
overnight delivery and (iii) five (5) business days following the date mailed when mailed by
registered or certified mail return receipt requested and postage prepaid, in each case as follows:

	 	(a)	 	If to the Company, to it at the following address:

HCA Inc.

One Park Plaza

Nashville, TN 37203

Attention: General Counsel

Telecopy: (615) 344-1531

with copies to:

Merrill Lynch Global Private Equity

Four World Financial Center, Floor 23

New York, NY 10080

Attention: George A. Bitar

Telecopy: (212) 449-1119

and

Bain Capital Partners, LLC

111 Huntington Avenue

Boston, MA 02199

Attention: Chris Gordon

Telecopy: (617) 516-2010

and

Kohlberg Kravis Roberts & Co. L.P.

2800 Sand Hill Road, Suite 200

Menlo Park, CA 94025

Attention: James C. Momtazee

Telecopy: (650) 233-6584

and

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention: David J. Sorkin, Esq.

Telecopy: (212) 455-2502

27

 

          (b) If to the Management Stockholder, to the Management Stockholder at the address set forth
below under the Management Stockholder’s signature;

or at such other address as either party shall have specified by notice in writing to the other.

          26. Confidential Information; Covenant Not to Compete; Covenant Not to
Solicit.

          (a) In consideration of the Company entering into this Agreement with the Management
Stockholder, unless otherwise provided in any employment agreement entered into by and between the
Management Stockholder and the Company or any of its subsidiaries (in which case the corresponding
provisions therein shall control), the Management Stockholder hereby agrees effective as of the
date of the Management Stockholder’s commencement of employment with the Company or its
subsidiaries, without the Company’s prior written consent, the Management Stockholder shall not,
directly or indirectly:

   (i) at any time during or after the Management Stockholder’s employment with the
Company or its subsidiaries, disclose any Confidential Information pertaining to the
business of the Company or any of its subsidiaries, except when required to perform his or
her duties to the Company or one of its subsidiaries, by law or judicial process;

   (ii) at any time during the Management Stockholder’s employment with the Company or
its subsidiaries and for a period of two years thereafter, directly or indirectly, act as a
proprietor, investor, director, officer, employee, substantial stockholder, consultant, or
partner in any business that directly or indirectly competes, at the relevant determination
date, with the business of the Company, any Investor or any of their respective affiliates
in any geographic area where the Company or its Affiliates manufactures, produces, sells,
leases, rents, licenses or otherwise provides products or services,

   (iii) at any time during the Management Stockholder’s employment with the Company or
its subsidiaries and for a period of two years thereafter, directly or indirectly (A)
solicit customers or clients of the Company, any of its subsidiaries, the Investors or any
of their respective affiliates to terminate their relationship with the Company, any of its
subsidiaries, the Investors or any of their respective affiliates or otherwise solicit such
customers or clients to compete with any business of the Company, any of its subsidiaries,
the Investors or any of their respective affiliates or (B) solicit or offer employment to
any person who is, or has been at any time during the twelve (12) months immediately
preceding the termination of the Management Stockholder’s employment employed by the
Company or any of its affiliates;

provided that in each of (ii) and (iii) above, such restrictions shall not apply with
respect to any Investor or any of their affiliates that is not engaged in any business that
competes, directly or indirectly, with the Company or any of its subsidiaries. If the Management

28

 

Stockholder is bound by any other agreement with the Company regarding the use or disclosure of
Confidential Information, the provisions of this Agreement shall be read in such a way as to
further restrict and not to permit any more extensive use or disclosure of Confidential
Information. Notwithstanding the foregoing, for the purposes of Section 26(a)(ii), (x) the term
“affiliates” will not include any Investor or their affiliates that are not engaged in business
that is competing with the Company, and (y) the Management Stockholder may, directly or indirectly
own, solely as an investment, securities of any Person engaged in the business of the Company or
its affiliates which are publicly traded on a national or regional stock exchange or quotation
system or on the over-the-counter market if the Management Stockholder (I) is not a controlling
person of, or a member of a group which controls, such person and (II) does not, directly or
indirectly, own 5% or more of any class of securities of such Person.

          (b) Notwithstanding clause (a) above, if at any time a court holds that the restrictions
stated in such clause (a) are unreasonable or otherwise unenforceable under circumstances then
existing, the parties hereto agree that the maximum period, scope or geographic area determined to
be reasonable under such circumstances by such court will be substituted for the stated period,
scope or area. Because the Management Stockholder’s services are unique and because the Management
Stockholder has had access to Confidential Information, the parties hereto agree that money damages
will be an inadequate remedy for any breach of this Agreement. In the event of a breach or
threatened breach of this Agreement, the Company or its successors or assigns may, in addition to
other rights and remedies existing in their favor, apply to any court of competent jurisdiction for
specific performance and/or injunctive relief in order to enforce, or prevent any violations of,
the provisions hereof (without the posting of a bond or other security).

          (c) In the event that the Management Stockholder breaches any of the provisions of Section
26(a), in addition to all other remedies that may be available to the Company, the Management
Stockholder shall be required to pay to the Company any amounts actually paid to him or her by the
Company in respect of any repurchase by the Company of any Options or Stock held by such Management
Stockholder; provided that with respect to Option Stock, the Management Stockholder shall
be required to pay to the Company only such amounts, if any, that the Management Stockholder
received in excess of the exercise price paid by the Management Stockholder in acquiring such
Option Stock, on a net after-tax basis.

          27. Effectiveness.

          Except for Sections 1, 2(a), 2(f), 2(g), 3, 17, 18, 19, 21, 23 and 25 and this Section 27,
which shall become effective as of the execution and delivery of this Agreement by the Parties,
this Agreement shall become effective upon the Closing and prior thereto shall be of no force or
effect. If the Merger Agreement shall be terminated in accordance with its terms prior to the
Closing, this Agreement shall automatically terminate and be of no force or effect.

[Signatures on next page.]

29

 

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

	 	 	 	 	 	 	 
	 	 	HCA INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

[signature page to Management Stockholder’s Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	MANAGEMENT STOCKHOLDER:
	 
	 	 	 
	 

	 	     Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ADDRESS:
	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 

[signature page to Management Stockholder’s Agreement]

 

 

Schedule I

PURCHASED STOCK

Number of shares of Purchased Stock:                     

Base Price:                     

NEW OPTIONS

Number of shares of Common Stock underlying New Options:                     

STATUS AS SENIOR MANAGEMENT STOCKHOLDER

o Yes o NoEx-10.13 Sale Participation Agreement

 

Exhibit 10.13

SALE PARTICIPATION AGREEMENT

November
17, 2006

To: The Person whose name is

      set forth on the signature page hereof

Dear Sir or Madam:

          You have entered into an Exchange and Purchase Agreement with Hercules Holding II, LLC, a
Delaware limited liability company and the parent entity of the Company (“Hercules
Holding”), and/or a Management Stockholder’s Agreement, dated as of the date hereof, between
HCA Inc., a Delaware corporation (the “Company”), and you (the “Stockholder’s
Agreement”) relating to (i) Rollover Stock (as defined in the Stockholder’s Agreement); (ii)
Rollover Options (as defined in the Stockholder’s Agreement); (iii) the purchase by you of
Purchased Stock (as defined in the Stockholder’s Agreement); and/or (iv) the grant by the Company
to you of new options (together with the Rollover Options, “Options”) to purchase shares of
common stock, par value $0.01 per share, of the Company (“Common Stock”). The undersigned,
Bain Capital Fund IX, L.P., KKR Millennium Fund L.P., KKR 2006 Fund L.P. and ML Global Private
Equity Fund, L.P. (each, an “Investor” and, collectively, the “Investors”), who
each hold interests in Hercules Holding, hereby agree with you as follows, effective as of the
Closing Date (as defined in the Stockholder’s Agreement):

          1. (a) In the event that at any time on or after the Closing Date any of the Investors
(together with any of their respective affiliates, to the extent provided for in Paragraph 9
hereof, the “Selling Investors”) proposes to sell, directly or indirectly, for cash or any
other consideration any shares of Common Stock owned, directly or indirectly, by it, in any
transaction other than a Public Offering (as defined in the Stockholder’s Agreement) or a sale,
directly or indirectly, to an affiliate of the Selling Investors, then, unless the Selling
Investors are entitled to and do exercise the drag-along rights pursuant to Paragraph 7 below and
the Drag Transaction is consummated, solely to the extent you are a Senior Management Stockholder
(as defined in the Stockholder’s Agreement) or the provisions hereof are otherwise applicable to
you pursuant to and in accordance with Section 11 of the Stockholder’s Agreement or as a result of
a decision by the Board (as defined in the Stockholder’s Agreement), after consultation with the
Chief Executive Officer of the Company, to extend the rights under this Section 1 to you, the
Selling Investors will notify you or your Management Stockholder’s Estate or Management
Stockholder’s Trust (as such terms are defined in the Stockholder’s Agreement, and collectively
with you, the “Management Stockholder Entities”), as the case may be, in writing (a
“Notice”) of such proposed sale (a “Proposed Sale”) specifying the principal terms
and conditions of the Proposed Sale (the “Material Terms”) including (A) the amount of
Common Stock to be included in the Proposed Sale, (B) the percentage of the outstanding Common
Stock at the time the Notice is given that is represented by the number of shares to be included in
the Proposed Sale, (C) the price per share of Common Stock subject to the Proposed Sale, including
a description of any pricing formulae and of any non-cash consideration sufficiently detailed to
permit valuation thereof, (D) the Tag Along Sale Percentage of the initial Selling Investor and

 

2

(E) the name and address of the Person (as defined in the Stockholder’s Agreement) to whom the Offered Stock is
proposed to be issued.

          (b) If, within 10 business days after the delivery of Notice under Section 1(a), the Selling
Investors receive from the Management Stockholder Entities a written request (a “Request”)
to include in the Proposed Sale an amount of Common Stock held by the Management Stockholder
Entities that does not exceed the Tag Along Sale Percentage multiplied by the total number of
shares of Common Stock held by the Management Stockholder Entities in the aggregate (which Request
shall be irrevocable except (a) as set forth in clauses (c) and (d) of this Section 1 below or (b)
if otherwise mutually agreed to in writing by the Management Stockholder Entities and the Selling
Investor(s)), the Common Stock held by you will be so included to the extent and as otherwise
provided herein; provided that only one Request, which shall be executed by the Management
Stockholder Entities, may be delivered with respect to any Proposed Sale for Common Stock held by
the Management Stockholder Entities. Promptly after the execution of the Sale Agreement, the
Selling Investors will furnish the Management Stockholder Entities with a copy of the Sale
Agreement, if any. For purposes of this Section 1(b), the “Tag Along Sale Percentage”
shall mean the fraction, expressed as a percentage, determined by dividing the number of shares of
Common Stock to be purchased from the initial Selling Investor by the total number of shares of
Common Stock owned directly or indirectly by such initial Selling Investor.

          (c) Notwithstanding anything to the contrary contained in this Agreement, if any of the
economic terms of the Proposed Sale change, including without limitation if the per share price
will be less than the per share price disclosed in the Notice, or any of the other principal terms
or conditions will be materially less favorable to the selling Management Stockholder Entities than
those described in the Notice, the prospective Selling Investors will provide written notice
thereof to each Management Stockholder Entity who has made a Request and each such Management
Stockholder Entity will then be given an opportunity to withdraw the offer contained in such
holder’s Request (by providing prompt (and in any event within five (5) business days; provided
that, notwithstanding the foregoing, if the proposed closing with respect to the Proposed Sale is
to occur within five (5) business days or less, no later than three (3) business days prior to such
closing) written notice of such withdrawal to the Selling Investors), whereupon such withdrawing
Management Stockholder Entity will be released from all obligations thereunder.

          (d) If the Selling Investors do not complete the Proposed Sale by the end of the 180th day
following the date of the effectiveness of the Notice, each selling Management Stockholder Entity
may elect to be released from all obligations under the applicable Request by notifying the Selling
Investors in writing of its desire to so withdraw. Upon receipt of that withdrawal notice, the
Notice of the relevant Management Stockholder Entities shall be null and void, and it will then be
necessary for a separate Notice to be furnished, and the terms and provisions of clauses (a) and
(b) of this Section 1 separately complied with, in order to consummate such Proposed Sale pursuant
to this Section 1, unless the failure to complete such proposed sale resulted from any failure by
any selling Management Stockholder Entity to comply with the terms of this Section 1.

          2. (a) The number of shares of Common Stock which the Management Stockholder Entities will be
permitted to include in a Proposed Sale pursuant to a Request will be

 

3

the lesser of (A) the number of shares of Common Stock such Management Stockholder Entities have offered to sell in the Proposed
Sale as set forth in the Request and (B) the number of shares of Common Stock determined by
multiplying (i) the number of shares of Common Stock to be included in the Proposed Sale by (ii) a
fraction the numerator of which is the number of shares of Common Stock owned by the Management
Stockholder Entities plus all shares of Common Stock which they are then entitled to
acquire under any unexercised portion of Options, to the extent such Option is then exercisable or
would become exercisable as a result of the consummation of the Proposed Sale, and the denominator
of which is the total number of shares of Common Stock owned by the Management Stockholder Entities
and all other Persons participating in such sale as tag-along sellers pursuant to Other Management
Stockholder Agreements (as defined in the Stockholder’s Agreement) or other agreements (all such
participants, together with the Selling Investors, the “Tag Along Sellers”) plus all shares of Common Stock which the
Tag Along Sellers are then entitled to acquire under any unexercised portion of Options, to the
extent such Options are then exercisable or would become exercisable as a result of the
consummation of the Proposed Sale, plus all shares of Common Stock owned by the Selling
Investors (the lesser of (A) or (B), the “Pro Rata Share”).

          (b) Any remaining shares of Common Stock subject to the Proposed Sale that would be allocated
to the Tag Along Sellers if each had offered to sell a number of shares equal to the Tag Along Sale
Percentage multiplied by the number of shares of Common Stock held by it shall be allocated to each
Tag Along Seller in an amount up to the excess of (i) the Tag Along Sale Percentage multiplied by
the number of shares of Common Stock held by such Tag Along Seller over (ii) its Pro Rata Share, or
as the Tag Along Sellers and the Selling Investors and any other Persons participating in such sale
may otherwise agree.

          3. Except as may otherwise be provided herein, shares of Common Stock subject to a Request
will be included in a Proposed Sale pursuant hereto and in any agreements with purchasers relating
thereto on the same terms and subject to the same conditions applicable to the shares of Common
Stock which the Selling Investors propose to sell (directly or indirectly) in the Proposed Sale
(with appropriate adjustments, as determined in good faith by the Selling Investors, in the event
that the Investors are proposing to transfer interests in Hercules Holding). Such terms and
conditions shall include, without limitation: the sale price; the payment of fees, commissions and
expenses; the provision of, and customary representations and warranties as to, information
reasonably requested by the Selling Investors covering matters regarding the Management Stockholder
Entities’ ownership of shares; and the provision of requisite indemnification; provided
that any indemnification provided by the Management Stockholder Entities shall be pro rata in
proportion with the number of shares of Common Stock to be sold; provided, further,
that no Management Stockholder Entity shall be required to indemnify any Person for an amount, in
the aggregate, in excess of the gross proceeds received in such Proposed Sale. Notwithstanding
anything to the contrary in the foregoing, if the consideration payable for shares of Common Stock
is securities and a Management Stockholder Entity is not able to acquire such securities under
U.S., foreign or state securities laws, such Management Stockholder Entity shall be entitled to
receive an amount in cash equal to the value of any such securities such Person would otherwise be
entitled to receive.

          4. Upon delivering a Request, the Management Stockholder Entities will, if requested by the
Selling Investors, execute and deliver a custody agreement and power of attorney in form and
substance reasonably satisfactory to the Selling Investors with respect to the shares of Common
Stock which are to be sold by the Management Stockholder Entities pursuant hereto (a “Custody
Agreement and Power of Attorney”). The Custody Agreement and Power of Attorney will contain
customary provisions and will provide, among other things, that the

 

4

Management Stockholder Entities
will deliver to and deposit in custody with the custodian and attorney-in-fact named therein a
certificate or certificates (if such shares are certificated) representing such shares of Common
Stock (duly endorsed in blank by the registered owner or owners thereof) and irrevocably appoint
said custodian and attorney-in-fact as the Management Stockholder Entities’ agent and
attorney-in-fact with full power and authority to act under the Custody Agreement and Power of
Attorney on the Management Stockholder Entities’ behalf with respect to the matters specified
therein.

          5. The Management Stockholder Entities’ right pursuant hereto to participate in a Proposed
Sale shall be contingent on the Management Stockholder Entities’ material compliance with each of
the provisions hereof and the Management Stockholder Entities’ respective willingness to execute
such documents in connection therewith as may be reasonably requested by the Selling Investors.

          6. If the consideration to be paid in exchange for shares of Common Stock in a Proposed Sale
pursuant to Section 1 includes any securities, and the receipt thereof by a Selling Investor and
Management Shareholder Entity would require under applicable law (a) the registration or
qualification of such securities or of any Person as a broker or dealer or agent with respect to
such securities or (b) the provision to any selling Management Shareholder Entity of any
information regarding the Company, its subsidiaries, such securities or the issuer thereof that
would not be required to be delivered in an offering solely to a limited number of “accredited
investors” under Regulation D promulgated under the Securities Act of 1933, as amended, and the
rules and regulations in effect thereunder, such Selling Investor and Management Shareholder Entity
shall not, subject to the following sentence, have the right to sell shares of Common Stock in such
proposed sale. In such event, the Selling Investors shall have the right to cause to be paid to
such selling Management Shareholder Entity in lieu thereof, against surrender of the shares of
Common Stock which would have otherwise been sold by such selling Management Shareholder Entity to
the prospective buyer in the proposed sale, an amount in cash equal to the Fair Market Value (as
defined in the Stockholder’s Agreement) of such shares of Common Stock as of the date such
securities would have been issued in exchange for such shares of Common Stock.

          7. (a) If any of the Investors (together with their respective affiliates) propose to
transfer, directly or indirectly, a number of shares of Common Stock equal to 50% or more of the
Current Selling Investors Ownership Share Number (such Person, the “Drag-Along Purchaser”),
then if requested by the Investors, the Management Stockholder Entities shall be required to sell a
number of shares of Common Stock equal to the aggregate number of shares of Common Stock held by
the Management Stockholder Entities (including shares of Common Stock underlying exercisable
Options) multiplied by a fraction, the numerator of which is the number of shares of Common Stock
proposed to be sold (directly or indirectly) by the Investors (together with their respective affiliates) and the denominator of which is the Current Selling Investors Ownership
Share Number (such transaction, a “Drag Transaction”).

     (b) Shares of Common Stock held by the Management Stockholder Entities included in a Drag
Transaction will be included in any agreements with the Drag-Along Purchaser relating thereto on
the same terms and subject to the same conditions applicable to the shares of Common Stock which
the Investors propose to sell in the Drag Transaction (provided

 

5

that appropriate adjustments, as
determined in good faith by the Investors, shall be made in the event the Investors are proposing
to transfer interests in Hercules Holding). Such terms and conditions shall include, without
limitation: the pro rata reduction of the number of shares of Common Stock to be sold by the
Investors and the Management Stockholder Entities to be included in the Drag Transaction if
required by the Drag-Along Purchaser; the sale price; the payment of fees, commissions and
expenses; the provision of, and representation and warranty as to, information reasonably requested
by the Investors covering matters regarding the Management Stockholder Entities’ ownership of
shares; and the provision of requisite indemnification; provided that any indemnification
provided by the Management Stockholder Entities shall be pro rata in proportion with the number of
shares of Common Stock to be sold; provided, further, that no Management
Stockholder Entity shall be required to indemnify any Person for an amount, in the aggregate, in
excess of the proceeds received in such Proposed Sale.

          (c) Your pro rata share of any amount to be paid pursuant to Paragraph 3 or 7(b) shall be
based upon the number of shares of Common Stock intended to be transferred by the Management
Stockholder Entities plus the number of shares of Common Stock you would have the right to acquire
under any unexercised portion of the Option which is then vested or would become vested as a result
of the Proposed Sale or Drag Transaction, assuming that you receive a payment in respect of such
Option.

          (d) Notwithstanding anything to the contrary in the foregoing, if the consideration payable
for shares of Common Stock is securities and a Management Stockholder Entity is not able to acquire
such securities under U.S., foreign or state securities laws, such Management Stockholder Entity
shall be entitled to receive an amount in cash equal to the value of any such securities such
Person would otherwise be entitled to receive.

          8. For purposes of this Agreement, the “Current Selling Investors Ownership Share
Number” shall mean the sum of (x) the product of (A) the aggregate number of shares of Common
Stock issued and outstanding as of the date of the proposed Drag Transaction, as applicable,
times (B) the Investors HoldCo Ownership Percentage (as defined in the Stockholder’s
Agreement) as of such date (calculated, in the case of a Proposed Sale pursuant to Section 1,
solely with respect to the Selling Investors, and with respect to a Drag Transaction, with respect
to all of the Investors), times (C) the HoldCo Company Ownership Percentage (as defined in the
Stockholder’s Agreement) as of such date and (y) the number of shares of Common Stock owned
directly by the Selling Investors (or all Investors, in the case of a Drag Transaction) and their
respective affiliates as of such date.

          9. The obligations of the Selling Investors hereunder shall extend only to the Management
Stockholder Entities and any transferees (“Permitted Transferees”) who (a) are Other
Management Stockholders (as defined in the Stockholder’s Agreement), (b) are party to a
Management Stockholder’s Agreement with the Company and (c) have acquired Common Stock
pursuant to a Permitted Transfer (as defined in the Stockholder’s Agreement), and none of the
Management Stockholder Entities’ successors or assigns, with the exception of any Permitted
Transferee and only with respect to the Common Stock acquired by such Permitted Transferee pursuant
to a Permitted Transfer, shall have any rights pursuant hereto.

 

6

          10. If the Investors or any of them transfer, directly or indirectly, any of their interests
in the Company or Hercules Holding to an affiliate of any of the Investors, such affiliate shall
assume the obligations hereunder of the Investors.

          11. This Agreement shall terminate and be of no further force and effect on the occurrence of
the earlier of the IPO (as defined in the Stockholder’s Agreement) or a Change in Control.

          12. All notices and other communications required or permitted hereunder shall be in writing
and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b)
when sent by confirmed facsimile if sent during normal business hours of the recipient, if not,
then on the next business day, (c) five (5) days after having been sent by registered or certified
mail, return receipt requested, postage prepaid or (d) one (1) business day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with written verification of
receipt. All communications shall be sent to such party’s address as set forth below or at such
other address or to such other person as the party shall have furnished to each other party in
writing in accordance with this provision:

          If to the Investors, to them at the following addresses:

Merrill Lynch Global Private Equity

Four World Financial Center, Floor 23

New York, NY 10080

Attention:    George A. Bitar

Telecopy:   (212) 449-1119

and

Bain Capital Partners, LLC

111 Huntington Avenue

Boston, MA 02199

Attention:   Chris Gordon

Telecopy:   (617) 516-2010

and

Kohlberg Kravis Roberts & Co. L.P.

2800 Sand Hill Road, Suite 200

Menlo Park, CA 94025

Attention:    James C. Momtazee

Telecopy:    (650) 233-6584

with copies to:

Hercules Holding II, LLC

c/o Merrill Lynch Global Private Equity

Four World Financial Center, Floor 23

New York, NY 10080

 

7

Attention: George A. Bitar

Telecopy:   (212) 449-1119

and

Bain Capital Partners, LLC

111 Huntington Avenue

Boston, MA 02199

Attention:    Chris Gordon

Telecopy:    (617) 516-2010

and

Kohlberg Kravis Roberts & Co. L.P.

2800 Sand Hill Road, Suite 200

Menlo Park, CA 94025

Attention:    James C. Momtazee

Telecopy:    (650) 233-6584

and

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention: David J. Sorkin, Esq.

Telecopy: (212) 455-2502

          If to the Company, to the Company at the following address:

HCA Inc.

One Park Plaza

Nashville, TN 37203

Attention: General Counsel

Telecopy: (615) 344-1531

with a copy to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention: David J. Sorkin, Esq.

Telecopy: (212) 455-2502

          If to you, to you at the address first set forth above herein;

          If to your Management Stockholder’s Estate or Management Stockholder’s Trust, to the address
provided to the Company by such entity.

 

8

          13. The laws of the State of Delaware shall govern the interpretation, validity and
performance of the terms of this Agreement. In the event of any controversy among the parties
hereto arising out of, or relating to, this Agreement which cannot be settled amicably by the
parties, such controversy shall be finally, exclusively and conclusively settled by mandatory
arbitration conducted expeditiously in accordance with the American Arbitration Association rules,
by a single independent arbitrator. Such arbitration process shall take place in Nashville,
Tennessee. The decision of the arbitrator shall be final and binding upon all parties hereto and
shall be rendered pursuant to a written decision, which contains a detailed recital of the
arbitrator’s reasoning. Judgment upon the award rendered may be entered in any court having
jurisdiction thereof. Each party shall bear its own legal fees and expenses, unless otherwise
determined by the arbitrator; provided that if the Management Stockholder substantially prevails on
any of his or her substantive legal claims, then the Investors shall reimburse all legal fees and
arbitration fees incurred by the Management Stockholder to arbitrate the dispute. Each party
hereto hereby irrevocably waives any right that it may have had to bring an action in any court,
domestic or foreign, or before any similar domestic or foreign authority with respect to this
Agreement.

          14. This Agreement may be executed in counterparts, and by different parties on separate
counterparts, each of which shall be deemed an original, but all such counterparts shall together
constitute one and the same instrument.

          15. It is the understanding of the undersigned that you are aware that no Proposed Sale is
contemplated and that such a sale may never occur.

          16. This Agreement may be amended by the Investors at any time upon notice to the Management
Stockholder thereof; provided that any amendment (i) that materially disadvantages the
Management Stockholder shall not be effective unless and until the Management Stockholder has
consented thereto in writing and (ii) that disadvantages a class of stockholders that in more than
a de minimus way but less than a material way shall require the consent of a majority of the equity
interests held by such affected class of stockholders.

[Signatures on following pages]

 

 

          If the foregoing accurately sets forth our agreement, please acknowledge your acceptance
thereof in the space provided below for that purpose.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	BAIN CAPITAL FUND IX, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	BAIN CAPITAL PARTNERS IX, L.P.,	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	BAIN CAPITAL INVESTORS, LLC,

its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	KKR MILLENNIUM FUND, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	KKR ASSOCIATES MILLENNIUM L.P.,	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	KKR MILLENNIUM GP LLC,	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	KKR 2006 FUND L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	KKR Associates 2006 L.P.	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	KKR 2006 GP LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[signature page to Sale Participation Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	ML GLOBAL PRIVATE EQUITY FUND, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	MLGPE LTD, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[signature page to Sale Participation Agreement]

 

 

	 
	Accepted and agreed this                      day of

	 

	                                        2006.

	 	 	 	 	 
	 	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 

[signature page to Sale Participation Agreement]

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