Document:

Ex-10.16 Exchange and Purchase Agreement

 

Exhibit 10.16

EXCHANGE AND PURCHASE AGREEMENT

     This Exchange and Purchase Agreement, dated as of November 17, 2006 (this “Agreement”)
by and among Hercules Holding II, LLC, a Delaware limited liability company (“Parent”) and
the other persons named in the signature pages hereto (the “Management Stockholders”).
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the
Merger Agreement (as defined below).

     WHEREAS, pursuant to an Agreement and Plan of Merger, dated as of July 24, 2006 (the
“Merger Agreement”), by and among Parent, Hercules Acquisition Corporation, a Delaware
corporation (“Merger Sub”) and HCA Inc., a Delaware corporation (the “Company”),
and subject to the terms and conditions set forth in the Merger Agreement, Merger Sub will be
merged with and into the Company (the “Merger”), with the Company surviving the Merger as a
subsidiary of Parent; and

     WHEREAS, in connection with the Merger, Parent has agreed to (i) permit the Management
Stockholders, and the Management Stockholders desire, immediately prior to the Effective Time, to
exchange certain shares (the “Exchanged Shares”) of common stock, par value $0.01 per
share, of the Company (the “Common Stock”), as specified by the Management Stockholder, for
limited liability company membership interests in Parent (“Limited Liability Company
Interests”) immediately prior to the Effective Time, which Limited Liability Company Interests
will be liquidated, immediately after the Effective Time, in exchange for shares of common stock,
par value $0.01 per share, of the Surviving Corporation (the “Surviving Common Stock”) and
cash in lieu of fractional shares, if any, and/or (ii) purchase from each Management Stockholder,
at a per share purchase price equal to the Merger Consideration, certain other shares of Common
Stock owned by such Management Stockholder, as specified by the Management Stockholder; and

     WHEREAS, the parties hereto intend that for U.S. federal income tax purposes, the exchange of
Exchanged Shares for Limited Liability Interests in Parent followed by the immediate liquidation of
such Limited Liability Interests for shares of Surviving Common Stock be disregarded and treated
with respect to each Management Stockholder as an exchange by the Management Stockholder of the
Exchanged Shares for the shares of Surviving Common Stock 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, except to the extent of cash received in lieu
of fractional shares.

     NOW, THEREFORE, in consideration of the foregoing and the respective representations,
warranties, covenants and agreements set forth in this Agreement, and intending to be legally bound
hereby, the parties hereto agree as follows:

ARTICLE I

THE SHARE EXCHANGE AND SHARE PURCHASE

     1.1 The Share Exchange.

     (a) Upon the terms and subject to the conditions set forth in this Agreement, at the Share
Closing (as defined below), each Management Stockholder shall transfer (the “Share 

 

 

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Exchange”) all right, title and interest in and to the shares of Common Stock set
forth under the caption “ROLLOVER OF UNRESTRICTED SHARES” in the corresponding signature page for
such Management Stockholder, free and clear of any Liens (as defined below), to Parent in exchange
for Limited Liability Company Interests in Parent that, immediately after the Effective Time, shall
be liquidated in exchange for a number of shares of Surviving Common Stock having a value
immediately after the Effective Time equal to the product of (i) the number of Exchanged Shares
being transferred by such Management Stockholder in the Share Exchange and (ii) $51.00, less any
applicable withholding taxes. Each of the parties hereto agrees to treat, to the extent
permitted by applicable law, the Share Exchange for U.S. federal tax purposes as an exchange of the
Exchanged Shares for Surviving Common Stock 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.

     (b) Notwithstanding the foregoing, no certificate or scrip representing fractional shares of
Surviving Common Stock shall be issued pursuant to the Share Exchange, and such fractional share
interests shall not entitle the owner thereof to vote or to any rights as a stockholder of the
Surviving Corporation with respect to any such fractional shares. In lieu of any such fractional
shares, each Management Stockholder who would otherwise have been entitled to a fraction of a share
of Surviving Common Stock pursuant to the Share Exchange in accordance with Section 1.1(a) above
shall be entitled to receive from Parent a cash payment in lieu of such fractional share in an
amount equal to such fraction multiplied by the per share value of the Surviving Corporation
immediately after the Merger (and giving effect to any shares issued pursuant to the Share
Exchange) less any applicable withholding taxes.

     (c) The Limited Liability Company Interests issued in respect of the Share Exchange to each
Management Stockholder may not be directly or indirectly offered, transferred, sold, assigned,
pledged, hypothecated or otherwise disposed of by any Management Stockholder. Such Limited
Liability Company Interests shall be uncertificated.

     1.2 The Share Purchase. Upon the terms and subject to the conditions set forth in
this Agreement, at the Share Closing (as defined below), Parent shall acquire (the “Share
Purchase”) from each Management Stockholder, and Management Stockholder shall sell, assign,
transfer and deliver to Parent, all right, title and interest in and to the shares of Common Stock
(the “Sold Shares”) set forth under the captions “UNRESTRICTED SHARES TO BE PURCHASED BY
PARENT” and “RESTRICTED SHARES TO BE PURCHASED BY PARENT” in the corresponding signature page for
such Management Stockholder, free and clear of any Liens (other than those, if any, created by
Parent), and Parent shall pay to such Management Stockholder in consideration therefor an aggregate
cash amount equal to the product of $51.00 and the number of Sold Shares, without interest and less
any applicable withholding taxes (such amount, the “Sold Share Consideration”), a portion
of which, to the extent relating to proceeds in respect of Sold Shares that are currently subject
to vesting or similar restrictions, may be used by such Management Stockholder upon election as set
forth under the caption “AFTER-TAX PROCEEDS FROM SALE OF RESTRICTED SHARES TO BE REINVESTED IN
SURVIVING CORPORATION SHARES” in his or her signature page to this Agreement, to satisfy all or a
portion of the purchase price in respect of such Management Stockholder’s purchase of Purchased
Stock (as defined in the Management Stockholder’s Agreement) pursuant to the Management
Stockholder’s Agreement (as defined below) (any amounts so used, the “Reinvestment
Amount”).

 

 

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     1.3 Share Closing. The closing (the “Share Closing”) of the Share Exchange
and Share Purchase shall take place at the offices of Simpson Thacher & Bartlett LLP, 425 Lexington
Avenue, New York, New York, on the date of the Closing but immediately prior to the Effective Time,
provided that the conditions set forth in Section 5.1 hereof shall have been satisfied or waived on
or prior thereto. At the Share Closing, (a) each of the Management Stockholders will deliver and
surrender or will cause to be delivered and surrendered to Parent the certificate or certificates
representing the Exchanged Shares and Sold Shares, in each case duly endorsed for transfer to
Parent and/or accompanied by stock or other appropriate powers duly endorsed in blank, or such
other instruments of transfer as Parent may reasonably request, including without limitation a
letter of instruction to the Company’s transfer agent, and a properly completed Internal Revenue
Service Form W-9, and (b) Parent will deliver or cause to be delivered to each of the Management
Stockholders, if applicable, an amount in cash equal to (i) the sum of (x) the Sold Share
Consideration in respect of such Management Stockholder’s Sold Shares and (y) any cash to be paid
such Management Stockholder in lieu of fractional shares of Surviving Common Stock pursuant to
Section 1.1(b) hereof less (ii) such Management Stockholder’s Reinvestment Amount, if any,
by certified bank check to the address designated by such Management Stockholder and set forth on
his or her signature page to this Agreement. Immediately after the Closing, Parent will deliver or
cause to be delivered to each of the Management Stockholders engaging in the Share Exchange, if
applicable, a stock certificate or certificates representing that number of shares of Surviving
Common Stock to be received by such Management Stockholder in the Share Exchange.

     1.4 Closing under the Merger Agreement. In the event that the Share Closing has
occurred but the Closing does not occur for any reason whatsoever, (a) each Management Stockholder
shall return, as promptly as practicable, to Parent an amount in cash equal to any Sold Share
Consideration and any cash received in lieu of fractional shares received by such Management
Stockholder at the Share Closing (less any applicable Reinvestment Amount) and (b) Parent shall
return, as promptly as practicable, to each Management Stockholder such Management Stockholder’s
Exchanged Shares and Sold Shares transferred to Parent at the Share Closing and, upon compliance
with the foregoing, no party shall have any further rights or obligations under this Agreement.

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF PARENT

     Parent hereby represents and warrants to the Management Stockholders as of the date hereof and
the date of the Share Closing that:

     2.1 Corporate Existence and Power. Parent is a limited liability company duly formed,
validly existing and in good standing under the laws of the State of Delaware.

     2.2 Authorization. The execution, delivery and performance by Parent of this
Agreement and the consummation of the transactions contemplated hereby are within Parent’s limited
liability company powers and have been duly authorized by all necessary action on the part of
Parent. This Agreement has been duly and validly executed and delivered by Parent. Assuming this
Agreement is the valid and binding agreement of each of the Management Stockholders, this Agreement
constitutes the legal, valid and binding agreement of Parent, enforceable against Parent in
accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of

 

 

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general application affecting enforcement or creditors’ rights generally and general equitable
principles.

     2.4 Noncontravention. The execution, delivery and performance by Parent of this
Agreement does not and will not (a) violate the certificate of formation or operating agreement of
Parent, (b) violate any law, rule, regulation, judgment, injunction, order or decree applicable to
or binding upon Parent, (c) require any consent or other action by any person under, constitute a
default under (with due notice or lapse of time or both), or give rise to any right of termination,
cancellation or acceleration of any right or obligation of Parent or to a loss of any benefit to
which Parent is entitled under any provisions of any agreement or other instrument binding upon
Parent or any of its assets or properties or (d) result in the creation or imposition of any
material mortgage, lien, pledge, charge, security interest or encumbrance (each, a “Lien”)
on any property or asset of Parent.

     2.5 Valid Issuance of Securities. The shares of Surviving Common Stock and Limited
Liability Company Interests which are being issued to the Management Stockholders hereunder will,
when issued, sold and delivered in accordance with the terms hereof for the consideration expressed
herein, have been duly and validly authorized and issued and will be fully paid and nonassessable.

     2.6 Sufficiency of Funds. At the Share Closing, Parent will have sufficient funds
necessary to pay the aggregate amount of all Sold Share Consideration (less all Reinvestment
Amounts) and cash in lieu of fractional shares payable to the Management Stockholders at such time.

     2.7 Company Action. Prior to the Share Closing, Parent shall use its reasonable best
efforts to cause the Company to take such actions as are necessary to permit the issuance of shares
of the Surviving Common Stock contemplated by this Agreement.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE MANAGEMENT STOCKHOLDERS

     Each Management Stockholder hereby represents and warrants, severally and not jointly, to
Parent as of the date hereof and the date of the Share Closing that:

     3.1 Authorization. This Agreement has been duly and validly executed and delivered by
such Management Stockholder. Assuming this Agreement is the valid and binding agreement of Parent,
this Agreement constitutes the legal, valid and binding agreement of such Management Stockholder,
enforceable against such Management Stockholder in accordance with its terms, except as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general
application affecting enforcement or creditors’ rights generally and general equitable principles.

     3.3 Noncontravention. The execution, delivery and performance by each of
the Management Stockholders of this Agreement does not and will not (a) violate any law, rule,
regulation, judgment, injunction, order or decree applicable to or binding upon such Management
Stockholder, (b) require any consent or other action by any person under, constitute a default
under (with due notice or lapse of time or both), or give rise to any right

 

 

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of termination, cancellation or acceleration of any right or obligation of such Management
Stockholder or to a loss of any benefit to which such Management Stockholder is entitled under any
provision of any agreement or other instrument binding upon such Management Stockholder or any of
his or her assets or properties or (c) result in the creation or imposition of any material Lien on
any property or asset of such Management Stockholder.

     3.5 Valid Title. Such Management Stockholder is the sole (or joint with his or her
spouse) record and beneficial owner of the Sold Shares and Exchanged Shares which are transferred
by such Management Stockholder to Parent hereunder and such Management Stockholder has good and
valid title to those shares, free and clear of any preemptive rights, Liens, transfer taxes,
claims, charges, assessments or encumbrances of any kind or other restrictions on transfer.

     3.6 Accredited Investor Status. Such Management Stockholder is an “accredited
investor” as defined in Rule 501(a) of Regulation D, as amended, under the Securities Act of 1933,
as amended.

     3.7 Additional Representations. Such Management Stockholder hereby makes those
representations and warranties set forth in Sections 2(f) and 2(g) of the Management Stockholder’s
Agreement with respect to the shares of Surviving Common Stock to be received by such Management
Stockholder under the Share Exchange.

ARTICLE IV

COVENANTS OF PARENT AND THE MANAGEMENT STOCKHOLDERS

     4.1 Other Agreements. At or prior to the Share Closing, (a) each of the Management
Stockholders and the Company shall enter into a Management Stockholder’s Agreement, the form of
which is attached hereto as Exhibit A (the “Management Stockholder’s Agreement”) and (b)
Parent and each of the Management Stockholders shall enter into a Sale Participation Agreement, the
form of which is attached hereto as Exhibit B (the “Sale Participation Agreement”). Each
Management Stockholder acknowledges and agrees that any shares of Surviving Common Stock received
at the Share Closing pursuant to the Share Exchange and such Management Stockholder’s rights in
respect thereof shall be subject to the terms and conditions set forth in the Management
Stockholder’s Agreement and Sale Participation Agreement, including without limitation the
restrictions on transfer set forth therein.

     4.2 Further Assurances. Parent and each Management Stockholder agree that, from time
to time, whether on or after the date of the Share Closing, each of them will execute and deliver
such further instruments of conveyance and transfer and take such other actions as may be necessary
to carry out the purposes and intents of this Agreement.

ARTICLE V

CONDITIONS TO SHARE CLOSING; TERMINATION

     5.1 Conditions to the Share Closing.

     (a) Each party’s respective obligations to consummate the transactions contemplated by Article
I is subject to (i) the satisfaction or waiver on or prior to the Share

 

 

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Closing of all conditions to closing set forth in Article VIII of the Merger Agreement (other
than those conditions which by their terms are to be satisfied at Closing under the Merger
Agreement) and (ii) each party to the Merger Agreement being ready, willing and able to consummate
the Merger following completion of the transactions contemplated by this Agreement.

     (b) Parent’s obligations to consummate the transactions contemplated by Article I with respect
to each Management Stockholder is further subject to (i) the representations and warranties of such
Management Stockholder contained in this Agreement being true in all material respects when made
and at and as of the Closing Date, as if made at and as of such date, (ii) such Management
Stockholder having performed in all material respects all of its obligations hereunder required to
be performed by it on or prior to the Closing Date, (iii) such Management Stockholder having
executed and delivered the Sale Participation Agreement and the Management Shareholders Agreement,
and (iv) such Management Stockholder shall have delivered to Parent a properly completed Internal
Revenue Service Form W-9.

     5.2 Termination. This Agreement shall terminate with respect to Parent and each
Management Stockholder automatically without any action on the part of the parties hereto on the
earlier to occur of (a) termination of the Merger Agreement in accordance with the terms thereof
and (b) the Effective Time, if the transactions contemplated by Article I with respect to such
Management Stockholder have not been consummated prior thereto as a result of the conditions set
forth in Section 5.1 not being satisfied.

     5.3 Effect of Termination. If this Agreement is terminated pursuant to Section 5.2,
this Agreement shall forthwith become null and void and there shall be no liability or obligation
on the part of Parent or any Management Stockholder or their Affiliates, provided that if
termination pursuant to Section 5.2(b) shall result from the willful failure of a party to perform
a covenant of this Agreement, such party shall not be relived of any liability for such breach
prior to such termination. Nothwithstanding the foregoing, the provisions in Sections 1.4, 6.4,
6.5 and 6.6 will survive the termination hereof.

ARTICLE VI

MISCELLANEOUS

     6.1 Notices. 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 Parent, to:

Hercules Holding II, LLC

c/o Merrill Lynch Global Private Equity

Four World Financial Center, Floor 23

 

 

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New York, NY 10080

Attention: George A. Bitar

Facsimile: (212) 449-1119

and

Bain Capital Partners, LLC

111 Huntington Avenue

Boston, MA 02199

Attention: Chris Gordon

Facsimile: (617) 516-2010

and

Kohlberg Kravis Roberts & Co. L.P.

2800 Sand Hill Road, Suite 200

Menlo Park, CA 94025

Attention: James C. Momtazee

Facsimile: (650) 233-6584

with copies to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention: David J. Sorkin

Facsimile: (212) 455-2500

	 	 	 	if to a Management Stockholder, at such Management Stockholder’s
address as set forth on his or her respective signature page hereto.

     6.2 Amendments and Waivers. (c) Any provision of this Agreement may be amended or
waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an
amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom
the waiver is to be effective; provided that, the foregoing notwithstanding, this Agreement may be
amended without the consent of the Management Stockholders unless such amendment (i) materially
adversely affects the rights or obligations of the Management Stockholders hereunder, in which case
such amendment shall not be effective unless and until such Management Stockholders have consented
thereto in writing or (ii) adversely affects the rights or obligations of the Management
Stockholders hereunder in more than a de minimus way but less than a material way, in which case
such amendment shall require the consent of a majority of the equity interests held by such
affected class of stockholders prior to becoming effective.

     (d) No failure or delay by any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

 

 

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     6.3 Successors and Assigns. The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns,
provided that no party may assign, delegate or otherwise transfer any of its rights or
obligations under this Agreement without the consent of (a) Parent, in the case of assignment,
delegation or transfer of any rights or obligations hereunder by a Management Stockholder, and (b)
a majority of the Management Stockholders, in the case of assignment, delegation or transfer of any
rights or obligations hereunder by Parent.

     6.4 Governing Law. This Agreement shall be governed by and construed in accordance
with the law of the State of Delaware.

     6.5 Jurisdiction; Arbitration.

     (a) 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.

     (b) 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 to this Agreement 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 Parent shall
reimburse all legal fees and arbitration fees incurred by the Management Stockholder to arbitrate
the dispute.

     6.6 Waiver Of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     6.7 Counterparts; Third Party Beneficiaries. This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. This Agreement shall become effective
as to a particular Management Stockholder when such Management Stockholder shall have received a
counterpart hereof signed by Parent. No provision of this Agreement shall confer upon any person
other than the parties hereto any rights or remedies hereunder.

     6.8 Entire Agreement. This Agreement constitutes the entire agreement between the
parties with respect to the subject matter of this Agreement and supersedes all prior agreements
and understandings, both oral and written, between the parties with respect to the subject matter
of this Agreement.

     6.9 Captions. The captions herein are included for convenience of reference only and
shall be ignored in the construction or interpretation hereof.

 

 

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     6.10 Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be deemed to be excluded from this
Agreement and the balance of this Agreement shall be interpreted as if such provision were so
excluded and shall be enforced in accordance with its terms to the maximum extent permitted by law.

     6.11 Interpretation. The headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

[Remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, each of the undersigned has executed this Agreement as of the date first
above written.

	 	 	 	 	 
	 	HERCULES HOLDING II, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

MANAGEMENT STOCKHOLDER SIGNATURE PAGE

	 	 	 
	Name:
	 	____________

	Address:
	 	 

	 	 	____________

	 	 	____________

	 	 	____________

Bank Account Information:

Bank Name:

Bank Address:

ABA #:

A/C Name:

A/C No.:

Contact:

Name:

Phone:

NOTE: YOU MAY NOT EXCHANGE OPTIONS TO PURCHASE COMMON STOCK OF THE COMPANY PURSUANT TO THIS
EXCHANGE AND PURCHASE AGREEMENT.

EXCHANGED SHARES

	 	1.	 	Are you exchanging shares of Common Stock that you currently own for shares of common stock
of the Surviving Corporation?

	 		 	o Yes o No

	 		 	If yes, please indicate the shares you agree to exchange in the grid below.

	 		 	If yes, please indicate the shares you agree to exchange in the grid below.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	DESCRIPTION OF EXCHANGED SHARES	 	 	 	 
	Name and Address of Registered	 	 	 	 	 	 	 	 	 	 	 
	Holder or Name and Address	 	 	 	 	 	 	 	 	 	Certificate	 
	of Broker and the Account
Number	 	 	 	 	 	Date Shares to be	 	 	Number(s) of Shares	 
	of the Broker Account in	 	Number of Shares to	 	 	Exchanged were	 	 	to be Exchanged, if	 
	Which Shares Are Held	 	be Exchanged	 	 	Acquired	 	 	applicable	 
	
	 		 		 	
	
	 		 		 	
	
	 	 	 	 	 	 	 	 	 	 	 	 
	
	 		 		 	
	
	 	 	 	 	 	 	 	 	 	 	 	 
	
	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 		 		 	

 

 

SOLD SHARES

	 	2.	 	Do you wish Parent to purchase shares of Common Stock that you currently own rather than
receiving Merger Consideration (as defined in the Merger Agreement) in respect of such shares
from the Company’s Paying Agent pursuant to the Merger Agreement?

	 	 	 	o Yes o No
	 
	 	 	 	If yes, please indicate the shares you wish Parent to purchase in the grid below.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	DESCRIPTION
OF SOLD SHARES	 	 	 	 
	Name and Address of Registered	 	 	 	 	 	 	 	 	 	 	 
	Holder or Name of Broker	 	 	 	 	 	 	 	 	 	Certificate	 
	and the Account
Number	 	 	 	 	 	Date Shares to be	 	 	Number(s) of Shares	 
	of the Broker Account in	 	Number of Shares to	 	 	Sold were	 	 	to be Sold, if	 
	Which Shares Are Held	 	be
Sold to Parent	 	 	Acquired	 	 	applicable	 
	
	 		 		 	
	
	 		 		 	
	
	 	 	 	 	 	 	 	 	 	 	 	 
	
	 		 		 	
	
	 	 	 	 	 	 	 	 	 	 	 	 
	
	 	 	 	 	 	 	 	 	 	 	 	 
	Total
number of restricted shares
Total number of unrestricted
shares
Total number of Sold Shares
	 		 		 	

YOU UNDERSTAND AND AGREE THAT (I) IN ORDER TO RECEIVE ANY SHARES IN THE SURVIVING CORPORATION
AND/OR ANY CASH CONSIDERATION IN RESPECT OF SHARES SOLD TO PARENT PURSUANT TO THIS EXCHANGE AND
PURCHASE AGREEMENT, YOU MUST SUBMIT ANY DOCUMENTATION APPLICABLE TO YOU AS SET FORTH IN SECTION 1.3
OF THIS EXCHANGE AND PURCHASE AGREEMENT AND (II) EXECUTION OF THIS AGREEMENT CONSTITUTES ASSENT TO
THE CONSUMMATION OF THE MERGER AND CONSTITUTES A WAIVER BY THE UNDERSIGNED OF ANY APPRAISAL OR
DISSENTERS’ RIGHTS WITH RESPECT TO ANY EXCHANGED SHARES AND SOLD SHARES UNDER THE GENERAL
CORPORATION LAW OF THE STATE OF DELAWARE (“DGCL”) WHETHER OR NOT THE UNDERSIGNED HAS PREVIOUSLY
MADE A WRITTEN DEMAND UPON THE COMPANY AND/OR OTHERWISE COMPLIED WITH THE APPRAISAL RIGHTS
PROVISIONS OF THE DGCL.

IN WITNESS WHEREOF, I hereby agree to be a party to this Agreement as a “Management Stockholder” as
of the date first above written.

Signature:___________________________

 

 

EXHIBIT A

FORM OF MANAGEMENT STOCKHOLDER’S AGREEMENT

 

 

EXHIBIT B

FORM OF SALE PARTICIPATION AGREEMENTEx-10.20 November 17, 2006 Management Agreement

 

Exhibit 10.20

MANAGEMENT AGREEMENT

     This Management Agreement (this “Agreement”) is entered into as of November 17, 2006
by and among HCA Inc., a Delaware corporation (the “Company”), Bain Capital Partners, LLC
(“Bain”), Kohlberg Kravis Roberts & Co. L.P. (“KKR”), Dr. Thomas F. Frist, Jr.,
Patricia F. Elcan, William R. Frist and Thomas F. Frist III (each, a “Frist” and
collectively, “Frist”) (“Frist”) and Merrill Lynch Global Partners, Inc.
(“ML” and together with Bain, KKR and each Frist, the “Managers”), provided that
each such entity shall cease to be a “Manager” for all purposes hereunder at such time as
investment funds affiliated with or Affiliated Entities of such Manager are no longer entitled to
designate any members of the Board of Managers of Hercules Holding II, LLC (“LLC”).
Certain capitalized terms used herein are specifically defined in Section 6.

RECITALS

     WHEREAS, each of LLC and Hercules Acquisition Corporation, a Delaware corporation
(“Hercules Acquisition”), has been formed for the purpose of engaging in a transaction in
which Hercules Acquisition will be merged with and into the Company, with the Company surviving
(the “Merger”), pursuant to an Agreement and Plan of Merger between Hercules Acquisition,
the Company and LLC dated as of July 24, 2006 (as amended from time to time, the “Merger
Agreement”).

     WHEREAS, to enable Hercules Acquisition to engage in the Merger and related transactions, the
Managers provided financial and structural advice and analysis as well as assistance with due
diligence investigations and negotiations (the “Financial Advisory Services”); and

     WHEREAS, the Company wants to retain the Managers to provide certain management, consulting
and advisory services to the Company, and the Managers are willing to provide such services, on the
terms set forth below.

AGREEMENT

     NOW THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto,
intending to be legally bound, hereby agree as follows:

     1. Services. Each of the Managers hereby agrees that, during the term of this
Agreement (the “Term”), it will provide the following management, consulting and financial
and other advisory services to the Company as requested from time to time by the Board of Directors
of the Company:

     (a) advice in connection with the negotiation of agreements, contracts, documents and
instruments relating to the Company’s financing;

     (b) financial, managerial and operational advice in connection with the Company’s
business, including, without limitation, advice with respect to the development and
implementation of strategies for improving the operating and financial performance of the
Company and its subsidiaries; and

 

 

     (c) advice in connection with financing, acquisition, disposition, merger, combination
or change of control transactions involving the Company or any of its subsidiaries (however
structured).

     (d) such other services (which may include financial and strategic planning and
analysis, consulting services, human resources and executive recruitment services and other
services) as such Manager and the Company may from time to time agree in writing.

Each of the Managers shall devote such time and efforts to the performance of services contemplated
hereby as such Manager deems reasonably necessary or appropriate; provided, however, that no
minimum number of hours is required to be devoted by Bain, KKR, ML or each Frist on a weekly,
monthly, annual or other basis. The Company acknowledges that each of the Managers’ services are
not exclusive to the Company and that each Manager will render similar services to other persons
and entities. The Managers and the Company understand that the Company may, at times, engage one
or more investment bankers or financial advisers to provide services in addition to, but not in
lieu of, services provided by the Managers under this Agreement. In providing services to the
Company, each Manager will act as an independent contractor and it is expressly understood and
agreed that this Agreement is not intended to create, and does not create, any partnership, agency,
joint venture or similar relationship and that no party has the right or ability to contract for or
on behalf of any other party or to effect any transaction for the account of any other party.

     2. Payment of Fees.

     (a) The Company will pay to the Managers (or such affiliates as they may respectively
designate), in consideration of the Managers providing the Financial Advisory Services, an
aggregate transaction fee (the “Transaction Fee”) in the amount of $175,000,000,
such fee being payable at the closing of the Merger. The Transaction Fee shall be divided
among the Managers as follows:

	 	 	 	 	 
	Bain:
	 	$	48,611,111.11	 
	KKR:
	 	$	48,611,111.11	 
	ML:
	 	$	48,611,111.11	 
	Frist1:
	 	$	29,166,666.67	 

     (b) During the Term, the Company will pay to the Managers (or such affiliates as they
may respectively designate), an annual fee (the “Periodic Fee”) of $15,000,000, such
fee to be increased annually at a rate equal to the Percentage Increase in Adjusted EBITDA
over the previous year, effective as of March 31 of each such year, (the first such increase
to be effective March 31, 2008) in exchange for the ongoing services provided by the
Managers under Section 1 of this Agreement, such fee being payable by the Company in equal
quarterly installments in arrears at the end of each

 

			
	1	 	To be allocated as follows: (i) Thomas F. Frist, Jr.: $10,496,208.33; (ii) Patricia F. Elcan: 6,117,416.67; (iii) Thomas
F. Frist III: $4,503,800.00 and (iv) William R. Frist: $8,049,241.67.

2

 

calendar quarter. The initial quarterly Periodic Fee payment shall be pro rated to
reflect the portion of the current fiscal quarter that will elapse after the Merger. The
final quarterly Periodic Fee payment shall be pro rated to reflect the portion of the final
quarter prior to the end of the Term. The Periodic Fee shall initially be divided among the
Managers as follows: 3/15ths to Frist2 and 4/15ths to each of Bain, KKR and ML.
The allocation of the Periodic Fee shall be appropriately adjusted in the event of any
changes to the proportion of the number of Shares owned in the aggregate by each Manager and
its Affiliated Entities (directly, or indirectly through their holdings of units of the LLC)
on the last business day in the applicable calendar quarter for which such Periodic Fee is
required to be paid (provided that, for purposes of this Agreement, (i) the Bain Group and
their respective Affiliated Entities shall be deemed to be investment funds affiliated with
Bain; (ii) the KKR Group and their respective Affiliated Entities shall be deemed to be
investment funds affiliated with KKR, (iii) the ML Group and their respective Affiliated
Entities shall be deemed to be investment funds affiliated with ML; and (iv) the Family
Group and their respective Family Affiliates shall be deemed to be investment funds
affiliated with Frist).

     (c) The Company will, for each financing, acquisition, disposition, merger, combination
or change of control transaction involving the Company or any of its subsidiaries (however
structured), which has a gross transaction value of at least $100,000,000, pay to the
Managers (or such affiliates as they may respectively designate) an aggregate fee (the
“Subsequent Fee”) in connection with each such transaction equal to one percent (1%)
of the gross transaction value (including the purchase price paid (whether in cash or other
property) and all liabilities assumed or otherwise included in the transaction) of such
transaction or such other amount as may be mutually agreed by the Company and the Requisite
Members, such fee to be due and payable for the foregoing services at the closing of such
transaction and, in the case of financing transactions, whether or not any such financing is
actually committed or drawn upon. Each Subsequent Fee shall be divided among the Managers
in the same proportion as the Periodic Fee would be apportioned if the date such Subsequent
Fee is required to be paid were the last business day of a quarter.

     3. Term. This Agreement shall continue in full force and effect until December 31,
2016; provided that this Agreement shall be automatically extended each December 31 for an
additional year unless the Company or the Requisite Members provide written notice of their desire
not to automatically extend the term of this Agreement to the other parties hereto at least 90 days
prior to such December 31; provided, however, (a) that the Requisite Members may cause this
Agreement to terminate at any time and (b) this Agreement shall terminate automatically immediately
upon the consummation of an initial public offering unless the Requisite Members determine
otherwise. In the event of a termination of this Agreement, the Company shall pay each of the
Managers (or such affiliates as they may respectively designate) (i) all unpaid Periodic Fees
(pursuant to Section 2(b) above), Subsequent Fees (pursuant to

 

			
	2	 	To be allocated to each Frist, in consideration of each Frist providing the ongoing services provided by the
Managers under Section 1 as follows: (i) Thomas F. Frist, Jr.: 35.987023%;
(ii) Patricia F. Elcan: 20.974009%; (iii) Thomas F. Frist III: 15.441588% and
(iv) William R. Frist: 27.597380%.

3

 

Section 2(c) above) and expenses (pursuant to Section 4(a) below) due with respect to periods
prior to the date of termination plus (ii) the sum of the net present values (using discount rates
equal to the then yield on U.S. Treasury Securities of like maturity) of the Periodic Fees that
would have been payable with respect to the period from the date of termination until the
expiration date in effect immediately prior to such termination. The amounts described in clause
(ii) above shall be divided among the Managers in the same proportion as the Periodic Fee would be
apportioned if the applicable termination date were the last business day of a quarter. Sections 4
and 5 of this Agreement and any and all accrued and unpaid obligations under Section 2 shall survive
any termination of this Agreement with respect to matters occurring before, on or after the date of
such termination.

     4. Expenses; Indemnification.

     (a) Expenses. The Company will pay on demand all Reimbursable Expenses. As
used herein, “Reimbursable Expenses” means (i) all expenses incurred or accrued
prior to the date on which the transactions contemplated by the Merger Agreement are
consummated (the “Closing Date”) by any of the Managers or their affiliates
(including, in the case of Frist, the Family Group and their respective Family Affiliates)
in connection with this Agreement, the Merger or any related transactions, consisting of
their respective out-of-pocket expenses for travel and other incidentals in connection with
such transactions (including, without limitation, all air travel (by first class on a
commercial airline, by charter or by privately owned airplane, as determined by the party
seeking reimbursement) and other travel related expenses) and the out-of-pocket expenses and
the fees and charges of outside counsel and any other consultants or advisors retained by
the Managers in connection with such transactions, (ii) reasonable out-of-pocket expenses
incurred from and after the Closing Date relating to their affiliated funds’ or Affiliated
Entities’ investment in, the operations of, or the services provided by the Managers or
former Managers to, the Company or any of its affiliates from time to time (including,
without limitation, all air travel (by first class on a commercial airline, by charter or by
privately owned airplane, as determined by the appropriate Manager or former Manager) and
other travel related expenses), provided, however, that the Requisite Members must approve
any expenses referred to in this clause (ii) other than routine out-of-pocket expenses (it
being understood that expenses of outside counsel incurred by the Managers for advice in the
ordinary course regarding the investment, as well as regarding any transactions involving
such investment, shall be deemed approved hereunder), and (iii) expenses incurred from and
after the Closing Date by the Managers or former Managers, and their affiliates, which the
Requisite Members agree are properly allocable to the Company under this Agreement.

     (b) Indemnity and Liability. The Company will indemnify, exonerate and hold
each of the Managers and former Managers, and each of their respective partners,
shareholders, members, affiliates, directors, officers, fiduciaries, managers, controlling
Persons, employees and agents and each of the partners, shareholders, members, affiliates,
directors, officers, fiduciaries, managers, controlling Persons, employees and agents of
each of the foregoing (collectively, the “Indemnitees”) free and harmless from and
against any and all actions, causes of action, suits, claims, liabilities, losses, damages
and costs and out-of-pocket expenses in connection therewith (including reasonable

4

 

attorneys’ fees and expenses) incurred by the Indemnitees or any of them before or
after the date of this Agreement (collectively, the “Indemnified Liabilities”), as a
result of, arising out of, or in any way relating to (i) this Agreement, the Merger, any
transaction to which the Company is a party or any other circumstances with respect to the
Company (other than any such Indemnified Liabilities to the extent such Indemnified
Liabilities arise out of any breach of the LLC Agreement or any related agreements by such
Indemnitee or its affiliated or associated Indemnitees or any transaction entered into after
the Closing Date or (ii) operations of, or services provided by any of the Managers or
former Managers to the Company, or any of its affiliates from time to time, whether pursuant
to this Agreement or otherwise; provided that the foregoing indemnification rights shall not
be available to the extent that any such Indemnified Liabilities arose on account of such
Indemnitee’s gross negligence or willful misconduct, and further provided that, if and to
the extent that the foregoing undertaking may be unavailable or unenforceable for any
reason, the Company hereby agrees to make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under applicable
law. For purposes of this Section 4(b), none of the circumstances described in the
limitations contained in the two provisos in the immediately preceding sentence shall be
deemed to apply absent a final non-appealable judgment of a court of competent jurisdiction
to such effect, in which case to the extent any such limitation is so determined to apply to
any Indemnitee as to any previously advanced indemnity payments made by the Company, then
such payments shall be promptly repaid by such Indemnitee to the Company.

The rights of any Indemnitee to indemnification hereunder will be in addition to any other
rights any such person may have under any other agreement or instrument referenced above or
any other agreement or instrument to which such Indemnitee is or becomes a party or is or
otherwise becomes a beneficiary or under law or regulation. None of the Indemnitees shall
in any event be liable to the Company or any of its affiliates for any act or omission
suffered or taken by such Indemniee in connection with, relating to or arising out of this
Agreement, including without limitation the services provided by such Indemniee to the
Company or any of its affiliates (a) that does not constitute gross negligence or willful
misconduct or (b) in excess of the fees received by the applicable Manager hereunder. If
the Indemnitees related to more than one Manager or former Manager are similarly situated
with respect to their interests in connection with a matter that may be an Indemnified
Liability and such Indemnified Liability is not based on a Third-Party Claim, the
Indemnitees may enforce their rights pursuant to this Section 4(b) with respect to such
matter only with the consent of at least a majority of the Managers or former Managers whose
Indemnitees are so involved. In the event that any party that was previously a Manager
hereunder ceases to be a Manager in accordance with the definition thereof, the provisions
hereof for the benefit of Indemnitees of such party shall inure to such Indemnitees and
their successors and assigns.

     5. Disclaimer and Limitation of Liability; Opportunities.

     (a) Disclaimer; Standard of Care. None of the Managers or former Managers
makes any representations or warranties, express or implied, in respect of the services to
be provided by any Manager or former Manager hereunder. In no event shall any

5

 

Manager or former Manager be liable to the Company or any of its affiliates for any
act, alleged act, omission or alleged omission that does not constitute gross negligence or
willful misconduct of such Manager or former Manager as determined by a final,
non-appealable determination of a court of competent jurisdiction.

     (b) Limitation of Liability. In no event will any of the Managers or former
Managers or any of their Indemnitees be liable to the Company or any of its affiliates or
either of the other Managers or former Managers or their Indemnitees for any indirect,
special, incidental or consequential damages, including, without limitation, lost profits or
savings, whether or not such damages are foreseeable, or for any third party claims (whether
based in contract, tort or otherwise), relating to, in connection with or arising out of
this Agreement, including without limitation the services to be provided by the Managers or
former Managers hereunder, or for any act or omission that does not constitute gross
negligence or willful misconduct or in excess of the fees received by the applicable Manager
hereunder.

     6. Definitions. For purposes of this agreement, the following terms shall have the
following meanings:

     “Adjusted EBITDA” shall have the meaning given to such term in the Indenture
dated as of November 17, 2006 between and among the Company, the guarantors listed on the
signature pages thereto and The Bank of New York, as trustee, relating to the issuance of
the 9 1/8% Senior Secured Notes due 2014, the 9 1/4 Senior Secured Notes due 2016 and the 9
5/8%/10 3/8% Senior Secured Toggle Notes due 2016.

     “Affiliated Entities” shall have the same meaning given to it in the LLC
Agreement.

     “Bain Group” shall have the meaning given to such term in the LLC Agreement.

     “Family Affiliates” shall have the same meaning given to it in the LLC
Agreement.

     “Family Group” shall have the meaning given to such term in the LLC Agreement.

     “KKR Group” shall have the meaning given to such term in the LLC Agreement.

     “LLC Agreement” means the Amended and Restated Limited Liability Company
Agreement dated November 17, 2006 among Hercules Holding II, LLC and the other parties
thereto, as the same may be amended from time to time in accordance with its terms.

     “Merrill Lynch Group” shall have the meaning given to such term in the LLC
Agreement.

     “Percentage Increase in Adjusted EBITDA” means the amount of increase,
expressed as a percentage, of the Adjusted EBITDA for the most recently completed

6

 

fiscal year as compared to the Adjusted EBITDA of the next most recently completed
fiscal year; provided that if there is no such increase, then the “Percentage Increase in
Adjusted EBITDA” shall be 0% for such applicable year.

     “Person” means any individual or corporation, association, partnership, limited
liability company, joint venture, joint stock or other company, business trust, trust,
organization, or other entity of any kind.

     “Requisite Members” shall have the meaning given to such term in the LLC
Agreement.

     “Shares” shall mean the shares of HCA Common Stock (as defined in the LLC
Agreement).

     “Third-Party Claim” means any (i) claim brought by a Person other than the
Company, LLC, a Manager or any indemnified Person related to a Manager and (ii) any
derivative claim brought in the name of the Company or LLC that is initiated by a Person
other than a Manager or any indemnified Person related to a Manager.

     7. Assignment, etc. Except as provided below, none of the parties hereto shall have
the right to assign this Agreement without the prior written consent of each of the other parties.
Notwithstanding the foregoing, (a) any Manager may assign all or part of its rights and obligations
hereunder to any of its respective affiliates which provides services similar to those called for
by this Agreement, in which event such Manager shall be released of its rights to fees under
Section 2 and reimbursement of expenses under Section 4(a) and all of its obligations hereunder,
(b) the provisions hereof for the benefit of Indemnitees of the Managers shall inure to the benefit
of such Indemnitees and their successors and assigns and (c) all amounts due and owing or payable
hereunder to any of the individuals identified in footnote 2 hereof shall be paid when due or owing
under the terms hereof to such person’s estate ; provided, that, the Company shall have
received written notice of such person’s death and all amounts that would be payable hereunder to
any of the individuals identified in footnote 2 hereof shall, after such persons death, be payable
pro rata among the other individuals identified in footnote 2.

     8. Amendments and Waivers. No amendment or waiver of any term, provision or condition
of this Agreement shall be effective, unless in writing and executed by the Requisite Members and
the Company; provided, that any amendment or waiver that discriminates against or would adversely
affect a Manager will require the consent of such Manager; and provided, further that any Manager
may waive any portion of any fee to which it is entitled pursuant to this Agreement, and, unless
otherwise directed by such Manager, such waived portion shall revert to the Company. No waiver on
any one occasion shall extend to or effect or be construed as a waiver of any right or remedy on
any future occasion. No course of dealing of any person nor any delay or omission in exercising
any right or remedy shall constitute an amendment of this Agreement or a waiver of any right or
remedy of any party hereto.

     9. Governing Law: Jurisdiction.

     (a) Choice of Law. This Agreement and all matters arising under or related to
this Agreement shall be governed by and construed in accordance with the domestic

7

 

substantive laws of the State of Delaware without giving effect to any choice or
conflict of law provision or rule that would cause the application of the domestic
substantive laws of any other jurisdiction.

     (b) Consent to Jurisdiction. Each party to this Agreement, by its execution
hereof, (i) hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the State of Delaware for the purpose of any action, claim, cause
of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation
arising out of or based upon this Agreement or relating to the subject matter hereof, (ii)
hereby waives to the extent not prohibited by applicable law, and agrees not to assert, and
agrees not to allow any of its subsidiaries to assert, by way of motion, as a defense or
otherwise, in any such action, any claim that it is not subject personally to the
jurisdiction of the above-named courts, that its property is exempt or immune from
attachment or execution, that any such proceeding brought in one of the above-named courts
is improper, or that this Agreement or the subject matter hereof or thereof may not be
enforced in or by such court and (iii) hereby agrees not to commence or maintain any action,
claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or
investigation arising out of or based upon this Agreement or relating to the subject matter
hereof or thereof other than before one of the above-named courts nor to make any motion or
take any other action seeking or intending to cause the transfer or removal of any such
action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding
or investigation to any court other than one of the above-named courts whether on the
grounds of inconvenient forum or otherwise. Notwithstanding the foregoing, to the extent
that any party hereto is or becomes a party in any litigation in connection with which it
may assert indemnification rights set forth in this agreement, the court in which such
litigation is being heard shall be deemed to be included in clause (i) above.
Notwithstanding the foregoing, any party to this Agreement may commence and maintain an
action to enforce a judgment of any of the above-named courts in any court of competent
jurisdiction. Each party hereto hereby consents to service of process in any such
proceeding in any manner permitted by Delaware law, and agrees that service of process by
registered or certified mail, return receipt requested, at its address specified pursuant to
Section 11 hereof is reasonably calculated to give actual notice.

     (c) WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH
CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS THAT IT WILL NOT ASSERT
(WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN
RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR
OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT
OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING.
EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT
THIS SECTION 9(c) CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY ARE RELYING AND WILL
RELY IN ENTERING INTO THIS AGREEMENT AND

8

 

THE TRANSACTIONS CONTEMPLATED HEREBY. ANY PARTY HERETO MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION 9(c) WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT
OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

     10. Entire Agreement. This Agreement contains the entire understanding of the parties
with respect to the subject matter hereof and supersedes any prior communication or agreement with
respect thereto.

     11. Notice. Any notices and other communications required or permitted in this
Agreement shall be in writing and (a) delivered personally, (b) sent by facsimile or e-mail (if
provided and the recipient acknowledges receipt thereof by reply e-mail or otherwise), or (c) sent
by overnight courier, in each case, addressed as follows:

     If to the Company, to it:

HCA Inc.

One Park Plaza

Nashville, Tennessee 37203

Attention: General Counsel

Email:

with copies to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Facsimile: (212) 455-2502

Attention: David Sorkin, Esq.

Email: dsorkin@stblaw.com

     If to Bain, to it:

Bain Capital Partners, LLC

111 Huntington Avenue

Boston, Massachusetts 02199

Facsimile: (617) 516-2710

Attention: John Connaughton

E-mail: jconnaughton@baincapital.com

with copies to:

Ropes & Gray LLP

One International Place

Boston, Massachusetts 02110

Facsimile: (617) 951-7050

Attention: R. Newcomb Stillwell, Esq.

9

 

            Julie H. Jones, Esq.

E-mail: nstillwell@ropesgray.com

            jjones@ropesgray.com

     If to KKR, to it:

c/o Kohlberg Kravis Roberts & Co. L.P.

2800 Sand Hill Road, Suite 200

Menlo Park, CA 94025

Facsimile: (650) 233-6561

Attention: Michael Michelson

E-mail: michm@kkr.com

with copies to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, NY 10017

Facsimile: (212) 455-2502

Attention: David Sorkin, Esq.

                  Sean Rodgers, Esq.

E-mail: dsorkin@stblaw.com

            srodgers@stblaw.com

     If to ML, to it:

c/o Merrill Lynch Global Private Equity

Four World Financial Center, Floor 23

New York, NY 10080

Facsimile: (212) 449-1119

Attention: George A. Bitar

                  Christopher Birosak

with copies (which shall not constitute notice) to:

c/o Proskauer Rose LLP

1585 Broadway

New York, NY 10036-8299

Facsimile: (212) 969-2900

Attention: James P. Gerkis, Esq.

                  Jeffery A. Horwitz, Esq.

and a copy to:

Merrill Lynch Global Private Equity

Strategic M&A and Private Equity Counsel

10

 

Four World Financial Center, Floor 23

New York, NY 10080

Facsimile: (212) 449-7902

Attention: Frank J. Marinaro, Esq.

     If to Frist, to it:

c/o Dr. Thomas F. Frist, Jr.

3100 West End Ave., Suite 500

Nashville, TN 372034

Telecopy: (615) 385-9101

with copies to:

Sullivan & Cromwell LLP

125 Broad Street

New York, NY 10004

Attention: John Evangelakos, Esq.

Telecopy: (212) 558-3588

     Unless otherwise specified herein, such notices or other communications shall be deemed
effective and duly given upon actual receipt (or refusal of receipt). Each of the parties hereto
shall be entitled to specify a different address by giving notice as aforesaid to each of the other
parties hereto.

     12. Severability. In the event that any provision hereof would, under applicable law,
be invalid or unenforceable in any respect, such provision shall be construed by modifying or
limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible
under, applicable law. The provisions hereof are severable, and in the event any provision hereof
should be held invalid or unenforceable in any respect, it shall not invalidate, render
unenforceable or otherwise affect any other provision hereof.

     13. Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, but all of which taken together shall constitute one instrument.
A facsimile signature shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original.

     14. Payments. Each payment made pursuant to Section 2, 3 or 4 shall be paid by wire
transfer of immediately available federal funds to the accounts specified to the Company in writing
prior to such payment.

[Remainder of Page Intentionally Left Blank]

11

 

     IN WITNESS WHEREOF, each of the undersigned has duly executed this Agreement (or caused this
Agreement to be executed on its behalf by its officer or representative thereunto duly authorized)
under seal as of the date first above written.

	 	 	 	 	 
	 	HCA INC.

 	 
	 	By:  	/s/ R. Milton Johnson
 	 
	 	 	Name:  	R. Milton Johnson 	 
	 	 	Title:  	Executive Vice President and Chief
Financial Officer 	 
	 

[Management Agreement Signature Page]

 

	 	 	 	 	 
	 	HERCULES HOLDING II, LLC

 	 
	 	By:  	/s/ Chris Gordon
 	 
	 	 	Name:  	Chris Gordon 	 
	 	 	Title:  	President 	 
	 

[Management Agreement Signature Page]

 

	 	 	 	 	 
	 	BAIN CAPITAL PARTNERS, LLC

 	 
	 	By:  	/s/
Stephen G. Pagliuca
 	 
	 	 	Name:  	Stephen G. Pagliuca 	 
	 	 	Title:  	Managing Director 	 
	 

[Management Agreement Signature Page]

 

	 	 	 	 	 
	 	KOHLBERG KRAVIS ROBERTS & CO. L.P.

 	 
	 	By: KKR & CO. LLC, its general partner 	
 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/
Michael W. Michelson 	 
	 	 	Name:  	Michael W. Michelson 	 
	 	 	Title:  	Member 	 
	 

[Management Agreement Signature Page]

 

	 	 	 	 	 
	 	MERRILL LYNCH GLOBAL PARTNERS, INC.

 	 
	 	By:  	/s/ George A. Bitar
 	 
	 	 	Name:  	George A. Bitar 	 
	 	 	Title:  	Managing Director 	 
	 

[Management Agreement Signature Page]

 

     IN WITNESS WHEREOF, each of the undersigned has duly executed this Agreement (or \
caused this Agreement to be executed on its behalf by its officers or representatives as thereunto duly
authorized) under seal as of the date that above written.

	 	 	 	 	 
	 	HCA INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	BAIN CAPITAL PARTNERS, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	KOHLBERG FRAVIS ROBERTS CO, L.P.

 	 
	 	By: KKR & CO. LLC, its general partner 	
 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	MERRILL LYNCH GLOBAL PARTNERS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Nathan Thorne 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Thomas F. Frist, Jr.
 	 
	 	 	Name:  	Dr. Thomas F. Frist, Jr. 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Patricia F. Elcan
 	 
	 	 	Name:  	Patricia F. Elcan 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ William R. Frist
 	 
	 	 	Name:  	William R. Frist 	 
	 	 	 	 

 

	 	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Thomas F. Frist III
 	 
	 	 	Name:  	Thomas F. Frist III

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