Document:

Ex-10.22(c) Second Amendment to Supplemental Execu

 

Exhibit 10.22 (c)

SECOND AMENDMENT TO THE

HCA SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     This is the Second Amendment to the HCA Supplemental Executive Retirement Plan, as effective
July 1, 2001 (the “Plan”). Under Section 8.1 of the Plan, the Board of Directors of HCA Inc. has
the right to amend the Plan in the following particulars. Accordingly, the Board of Directors
hereby amends the Plan in the following particulars effective as of November 16, 2006, except as
otherwise noted.

1.

The definition of Actuarial Factors is revised effective January 1, 2007 to read as follows:

“Actuarial Factors” means (a) interest at the long-term Applicable Federal Rate
under Code section 1274(d) or any successor thereto as of the first day of November
preceding the Plan Year in which the Participant’s Retirement, death, Disability, or
termination with Benefit rights under Section 5.3 or 6.2 occurs, and (b) mortality
based on the prevailing commissioners’ standard table (described in Code section
807(d)(5)(A)) used in determining reserves for group annuity contracts.

2.

     A revised definition of Change in Control is adopted, to replace the existing definition, and
to read as follows:

“Change in Control” means: (a) a change in ownership of the Company; (b) a change
in effective control of the Company; or (c) a change in the ownership of a
substantial portion of the assets of the Company. For purposes of the preceding
sentence: (a) a “change in ownership of the Company” means the acquisition by one
person or entity or a group of persons and/or entities of greater than fifty percent
(50%) of the total fair market value or total voting power of the stock of the
Company (when such acquirer(s) previously owned less than fifty percent (50%) of the
value and voting power of such stock); (b) a “change in effective control of the
Company” means either: (i) the acquisition by one person or entity or a group of
persons and/or entities within a 12-month period of ownership of stock of the
Company possessing 35 percent (35%) or more of the total voting power; or (ii) a
replacement of a majority of the Board during a 12-month period by directors whose
appointment or election is not endorsed by a majority of the members of the Board
prior to such appointment or election; and (c) a “change in ownership of a
substantial portion of the assets of the Company” means acquisition by any person or
entity or a group of persons and/or entities during a 12-month period of assets from
the Company that have a total gross fair market value equal to or more than 40
percent (40%) of the total gross fair market value of all of the assets of the
Company immediately prior to acquisition, provided that a sale to a related person
or entity or a group of related persons and/or entities will not constitute a change
in ownership of a substantial portion of the assets of the Company. The foregoing
provisions will be interpreted in accordance with the

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applicable final regulations issued under Code Section 409A with respect to the
definition of a change in control.

3.

Section 2.2 is revised to read as follows:

	2.2	 	Election to Participate Not Necessary. An Employee chosen by the Board or the
Committee to participate need not take any action in order to participate. Only those
Employees listed on Schedule A shall be eligible to participate.

4.

Section 3.1 is revised to read as follows:

	3.1	 	Benefit Amount.

	 	(a)	 	The amount of a Participant’s annual Benefit in the form
of a life annuity beginning as of the first day of the month coincident
with or next following Normal Retirement shall be based on the following
formula:

	 	(1)	 	Schedule A Accrual Rate Percentage
(i.e., 2.2% or 2.4%) for the Participant multiplied by
the Participant’s Years of Service, multiplied by the
Participant’s Pay Average; less
	 
	 	(2)	 	The life annuity amount calculated as
of the first day of the month coincident with or next following
the Normal Retirement date, produced by the sum of the
employer-provided amount of (1) the accrued benefits under the
Qualified Plans, (2) the Qualified Plans’ Distribution Amount,
(3) the accrued benefits under the Nonqualified Plans, and (4)
the Nonqualified Plans’ Distribution Amount, utilizing the
Actuarial Factors to convert any amount or benefit to a life
annuity.

	 	(b)	 	The amount of a participant’s annual Benefit in the form
of a life annuity beginning as of the first day of the month coincident
with or next following Early Retirement shall be based on the following
formula:

	 	(1)	 	Schedule A Accrual Rate Percentage
(i.e., 2.2% or 2.4%) for the Participant multiplied by
the Participant’s Years of Service, multiplied by the
Participant’s Pay Average; with such amount then reduced by
three percent (3%) for each year that Retirement occurs before
age 62, provided that, in the case of a fractional part of a
year, this reduction factor will be adjusted by straight-line
interpolation; less

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	 	(2)	 	The life annuity amount calculated as
of the first day of the month coincident with or next following
the Early Retirement date, produced by the sum of the
employer-provided amount of (1) the accrued benefits under the
Qualified Plans, (2) the Qualified Plans’ Distribution Amount,
(3) the accrued benefits under the Nonqualified Plans, and (4)
the Nonqualified Plans’ Distribution Amount, utilizing the
Actuarial Factors to convert any amount or benefit to a life
annuity.

Subject to the provisions of Article V and the provisions of Section 6.2,
should a Participant retire or cease working for the Employer prior to
satisfying the Retirement conditions, he shall receive nothing from the
Plan. Benefits payments will be made monthly.

5.

Section 4.1 is revised to read as follows:

	4.1	 	Benefit Payments.

	 	(a)	 	Subject to subsections (c) and (d) below, a Participant
who is entitled to a Benefit pursuant to Section 3.1 upon Early
Retirement or Normal Retirement will be paid that Benefit in the form
of a life annuity supplied by the Company from its general assets.
Except as provided in Section 5.3, payment of annuity Benefits pursuant
to this subsection (a) or subsection (b) will commence as of the first
day of the month coincident with or next following the date that is six
(6) months after the date of Retirement, provided that Retirement will
not be deemed to occur and payments will not commence until base
compensation payments cease, with respect to a Participant who ceases
working at the request of Employer prior to expiration of payments of
base compensation pursuant to his employment agreement. Annuity
payments will be calculated as of the first day of the month coincident
with or next following the Early or Normal Retirement date, and a
lump-sum payment amount of the first six monthly payments plus interest
earnings calculated at the interest rate of the Actuarial Factors will
be paid with the first annuity payment, to cover the full months after
the applicable Early or Normal Retirement date and prior to the initial
payment date.
	 
	 	(b)	 	If a life annuity is the applicable Retirement Benefit
form, in lieu of a life annuity, a married Participant may elect to
receive his Benefit in the form of a joint and 50%, 75% or 100%
survivor annuity payable over the joint lives of the Participant and
the spouse which is actuarially equivalent (utilizing Actuarial
Factors) to the life annuity. In the event of such an election, if the
Participant is not married as of his Retirement date, his Benefit will

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	 	 	 	be paid in the form of a life annuity, and no survivor benefits will
be paid to anyone after the death of the Participant.
	 
	 	(c)	 	A Participant who experiences Retirement or a
termination with Benefit rights under Section 5.3 on or after January
1, 2007 will receive his Benefit in the form of a lump-sum distribution
in cash if (1) the Participant elects the lump-sum distribution
Retirement Benefit prior to 2008 (or prior to the first day of
participation, with respect to an individual who first becomes a
Participant after 2007), (2) the Participant fails to elect the annuity
form of payment with respect to his Retirement Benefits prior to 2008
(or prior to the first day of participation, with respect to an
individual who first becomes a Participant after 2007), or (3)
notwithstanding anything in clauses (1) or (2) to the contrary, the
Participant experiences Retirement on or prior to June 1, 2007 or
experiences a termination with Benefit rights under Section 5.3 during
2007, and has not elected an annuity form of Retirement Benefits
payment prior to 2007. Any lump sum will be paid on or as soon as
administratively feasible following the first day of the month
coincident with or next following the date that is six (6) months after
the date of Retirement, provided that Retirement will not be deemed to
occur and the lump-sum payment will not be made until base compensation
payments cease, with respect to a Participant who ceases working at the
request of Employer prior to expiration of payments of base
compensation pursuant to his employment agreement. Any lump-sum
distribution payment will be calculated as of the first day of the
month coincident with or next following the Early or Normal Retirement
date, and the lump-sum payment amount will include interest earnings
from such calculation date through the payment date at the interest
rate of the Actuarial Factors.
	 
	 	(d)	 	Notwithstanding the preceding provisions of this
Section 4.1 or any other provision of the Plan, in the case of a
Participant who experiences a Retirement, terminates employment with
Benefit rights under Section 5.3, incurs a Disability, or dies on or
after January 1, 2006, the Committee shall pay the Participant’s
Benefit in a lump-sum distribution in cash if the present value of the
Benefit, as calculated using Actuarial Factors as the first day of the
month coincident with or next following Retirement, termination with
Benefit rights under Section 5.3, death or Disability (whichever is
applicable), does not exceed $1,000,000.
	 
	 	(e)	 	Should a Benefit payment be delayed and the primary
cause thereof is not any action(s) or failure(s) to act of the
Participant or other payee, then the late payment will bear interest at
the interest rate of the Actuarial Factors. If an annuity is elected,
in lieu of the Company making payments from its general assets, at its
discretion, the Committee may utilize Company assets to purchase

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	 	 	 	an annuity from a commercial annuity supplier to fund the annuity.
Benefit payments will be calculated as of the first day of a month.

6.

Section 4.3 is amended by addition of the following paragraph, to follow the last sentence
thereof:

Section 4.3 will not apply to any Participant who retires in 2007 and begins
receiving payment of his Benefits (or receives all of his Benefits) in 2007.
Instead, the provisions of Section 4.1 will apply.

7.

Section 5.1, relating to death benefits, is revised to read as follows:

	5.1	 	Death.

	 	(a)	 	Subject to subsection (b) below and Section 4.1(d), in
the event of the death of a married Participant prior to Retirement,
but after attainment of age 55, an annuity will be supplied for the
benefit of the Participant’s surviving spouse with payments beginning
as soon as administratively feasible following death which shall
provide the surviving spouse with payments for life equal to the 100%
survivor portion of a joint and 100% survivor annuity which could have
been provided (assuming eligibility conditions met) for the Participant
and spouse with the Participant’s Benefit as determined on the day
immediately preceding the date of the Participant’s death. The Early
Retirement factors supplied in Section 3.1(b)(1) will be utilized to
calculate the Benefit that would exist if a life annuity was payable.
(Such Benefit amount will then be utilized to calculate the actual
survivor annuity Benefit.) Subject to subsection (b), in the event of
death of a married Participant prior to age 55, annuity will be
supplied for the Participant’s surviving spouse with payments beginning
as soon as administratively feasible following death which will supply
the surviving spouse with payments for life equal to the 100% survivor
portion of a joint and 100% survivor annuity which could have been
provided (assuming eligibility conditions were met) for the Participant
and spouse with the Participant’s Benefit as determined on the day
immediately preceding the date of the Participant’s death. The Early
Retirement factors supplied in Section 3.1(b)(1) will be utilized to
calculate the Benefit at age 55, and such age 55 Benefit shall then be
reduced by Actuarial Factors to the date of death, to calculate the
Benefit that would exist if a single life annuity was payable. (Such
Benefit amount shall then be utilized to calculate the actual survivor
annuity Benefit.) Subject to subsection (b), should a married
Participant die after Retirement, but before his Benefit payments begin
and before a benefits

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	 	 	 	election form has been received by the Committee, then an annuity
will be supplied for the benefit of the Participant’s surviving
spouse with payments beginning as soon as administratively feasible
following death which will supply the surviving spouse with payments
for life equal to the 50% survivor portion of a joint and 50%
survivor annuity which could have been provided for the Participant
and spouse with the Participant’s Benefit as determined on the day
immediately preceding the date of the Participant’s death. No death
benefits shall exist whatsoever for a single Participant.
	 
	 	(b)	 	The death benefit payable pursuant to subsection (a)
with respect to a married Participant who dies on or after January 1,
2007 will be paid to the Participant’s surviving spouse in a lump sum
in cash if (1) the Participant elects the lump-sum distribution death
Benefit form prior to 2008 (or prior to the first day of participation,
with respect to an individual who first becomes a Participant after
2007), (2) the Participant fails to elect the annuity form of payment
with respect to his death Benefits prior to 2008 (or prior to the first
day of participation with respect to an individual who first becomes a
Participant after 2007), or (3) notwithstanding anything in clauses (1)
or (2) to the contrary, the Participant dies in 2007 and did not elect
an annuity with respect to his death Benefit prior to 2007. The
lump-sum distribution will be calculated as of the first day of the
month coincident with or next following the Participant’s death, and it
will be actuarially equivalent (based on the Actuarial Factors) to the
survivor benefit of the applicable joint and survivor annuity
commencing on such date. Any lump sum will be paid on or as soon as
administratively feasible following the date of death. Interest
earnings will not be paid. If a lump sum election has been made and
there is no surviving spouse, no benefits whatsoever will be paid.

8.

Section 5.2, relating to disability benefits, is revised to read as follows:

	5.2	 	Disability.

	 	(a)	 	Subject to subsection (b) below and Section 4.1(d), in
the event of the Disability of a Participant prior to Retirement, the
Benefit amount determined as of the date of Disability shall be
utilized to supply an annuity (either a life annuity or a joint and
survivor annuity) pursuant to the annuity terms of Sections 3.1 and 4.1
with payments to begin at age 55 (or immediately, if the Participant
has already attained age 55), provided that if payments begin prior to
age 62, they shall be reduced in accordance with the Early Retirement
provisions of Section 3.1. Subject to subsection (b), a single
Participant shall receive a life annuity, and a married

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	 	 	 	Participant shall receive either a life annuity or a joint and
survivor annuity.

	 	(b)	 	In the case of a Participant who incurs a Disability on
or after January 1, 2007, the Disability Benefit payable pursuant to
subsection (a) will be paid to the Participant in a lump sum in cash if
(1) the Participant elects the lump-sum distribution Disability benefit
form prior to 2008 (or prior to the first day of participation, with
respect to an individual who first becomes a Participant after 2007),
(2) the Participant fails to elect the annuity form of payment with
respect to his Disability Benefit prior to 2008 (or prior to the first
day of participation with respect to an individual who first becomes a
Participant after 2007); or (3) notwithstanding anything in clause (1)
or (2) to the contrary, the Participant becomes Disabled in 2007 and
did not elect an annuity with respect to his Disability Benefit prior
to 2007. The lump-sum distribution will be calculated as of the first
day of the month coincident with or next following the date of
Disability, and it will be actuarially equivalent (based on the
Actuarial Factors) to the life annuity determined under subsection (a).
Any lump sum will be paid on or as soon as administratively feasible
following the date of Disability. The lump-sum payment amount will
include interest earnings from such calculation date through the
payment date at the interest rate of the Actuarial Factors.
	 
	 	(c)	 	Notwithstanding the foregoing provisions of this
section, if any payment in this section 5.2 would reduce the amount
payable to the Participant under any disability program of the
Employer, payments hereunder shall not be made or commenced until such
time as the payments would not result in a reduction in such disability
benefits.

9.

Section 5.3, relating to a Change in Control, is revised to read as follows:

	5.3	 	Change in Control. In the event of a Change in Control, with
respect to Participants actively employed on the date of the Change in Control:
(a) the Normal Retirement age will be age 60 (instead of age 62 with ten (10)
Years of Service or age 65), without reduction of Benefits ordinarily
applicable to Early Retirement; (b) all Benefits will be payable beginning at
age 60, or prior to age 60 if the Participant attains age 55 with twenty (20)
or more Years of Service, with the reductions ordinarily applicable to Early
Retirement in accordance with Section 3.1 for each year or partial year of
payments prior to age 60, (c) the Benefit form provisions of Section 4.1
applicable to Retirement will apply, except that (i) in accordance with the
payment provisions of Section 4.1, a Participant who elected to receive a
lump-sum distribution for Retirement Benefits will be paid his Benefits in a
lump-sum on or as soon as administratively feasible

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	 	 	following the first day of the month coincident or next following the date
that is six (6) months after his date of termination of employment following
a Change in Control, and (ii) in accordance with the lump-sum payment
provision of Section 4.1, a Participant who elected to receive annuity
Retirement Benefits will be paid his Benefits in a lump-sum distribution on
or as soon as administratively feasible following the first day of the month
coincident or next following the date that is six (6) months after
termination of employment following a Change in Control, if the present
value of his Benefit does not exceed $1,000,000, as calculated using the
Actuarial Factors on the first day of the month coincident with or next
following termination of employment; and (d) subject to the first two
sentences of Section 6.1, all Benefits shall be nonforfeitable. In the
event of termination of employment of Employee by Employer (or the successor
employer) when Cause does not exist, or a termination of employment by the
Employee when Good Reason exists, within six (6) months before or after the
Change in Control, in addition to the provisions described in the preceding
sentence, an additional three (3) Years of Service shall be granted (not to
exceed 25, in total) and the noncompete provisions of Section 6.3 will not
apply. In the event of a Change in Control as a result of consummation of
the July 24, 2006 merger agreement between HCA Inc., Hercules Holding II,
LLC and Hercules Acquisition Corporation, with respect to Plan Participants
as of July 24, 2006, except as otherwise required by law, the Plan will not
be terminated and, subject to the Plan’s limitations on benefit accrual,
benefit accruals will not cease, on or after the consummation of such
merger, until such time as all such Participants have become fully vested
(or have had the opportunity to become fully vested) in the maximum Benefits
available as of July 24, 2006.

10.

The following two sentences are added to Section 6.2, to follow the second sentence thereof:

If Benefits are so granted, such Benefits will be paid in a lump-sum distribution in
cash as soon as administratively feasible after six (6) months have passed since the
date that the Participant ceased to be an Employee. Such Benefits will include
interest earnings calculated at the interest rate of the Actuarial Factors.

11.

All provisions of the Plan not inconsistent herewith are hereby ratified and confirmed.

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8 of 8Ex-10.26 HCA 2007 Senior Officer Performance Excel

 

Exhibit 10.26

HCA INC.

2007 SENIOR OFFICER PERFORMANCE EXCELLENCE PROGRAM

Purpose and Administration of the Program

The 2007 Senior Officer Performance Excellence Program (the “Program”) has been established by
HCA Inc. (the “Company”) to encourage outstanding performance from its senior officers. Subject to
applicable law, all designations, determinations, interpretations, and other decisions under or
with respect to the Program or any award shall be within the sole discretion of the Compensation
Committee (the “Committee”), may be made at any time and shall be final, conclusive and binding
upon all persons. Designations, determinations, interpretations, and other decisions made by the
Committee with respect to the Program or any award need not be uniform and may be made selectively
among Participants (as defined below), whether or not such Participants are similarly situated.

Participation

All officers of the Company who have been designated by the Board of Directors as “executive
officers” of the Company during 2007 (the “Fiscal Year”) are eligible to receive an award pursuant
to the Program.

Incentive Calculation and Payment of Awards

The Committee will make awards pursuant to the Program as set forth on Schedule A
hereto, such awards to be made on such terms as the Committee may prescribe based on the
performance criteria set forth on Schedule A hereto and such other factors as it may deem
appropriate. The targets for the performance criteria shall be determined by the Committee in its
discretion within the first three months of the Fiscal Year. The Committee shall determine whether
and to what extent each performance or other goal has been met. Awards shall be paid within the
three months following the end of the Fiscal Year, or as soon as thereafter practicable after
financial results for the Fiscal Year are known. No awards will be paid to a Participant if the
Committee determines that the Participant’s conduct during the Fiscal Year was inconsistent with
the Company’s stated mission and values, the Code of Conduct or the Corporate Integrity Agreement.
Awards pursuant to the Program will be paid in cash and on such other terms as the Committee may
prescribe. Except as the Committee may otherwise determine in its sole and absolute discretion,
termination of a Participant’s employment prior to the end of the Fiscal Year, other than for
reasons of death or disability, will result in the forfeiture of the award by the Participant, and
no payments shall be made with respect thereto. This Program is not a “qualified” plan for federal
income tax purposes, and any payments are subject to applicable tax withholding requirements.

Adjustments for Unusual or Nonrecurring Events

The Committee is hereby authorized to make adjustments in the terms and conditions of, and the
criteria included in, awards in recognition of unusual or nonrecurring events affecting any
Participant, the Company, or any subsidiary or affiliate, or the financial statements of the
Company or of any subsidiary or affiliate; in the event of changes in applicable laws, regulations
or accounting principles; or in the event the Committee determines that such adjustments are
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Program. The Committee is also authorized to adjust
performance targets or awards (other than with respect to performance awards to Named Executive
Officers) to avoid unwarranted penalties or windfalls.

 

 

No Right to Employment

The grant of an award shall not be construed as giving a Participant the right to be retained in
the employ of the Company or any subsidiary or affiliate.

No Trust or Fund Created

Neither the Program nor any award shall create or be construed to create a trust or separate fund
of any kind or a fiduciary relationship between the Company or any subsidiary or affiliate and a
Participant or any other person. To the extent that any person acquires a right to receive
payments from the Company or any subsidiary or affiliate pursuant to an award, such right shall be
no greater than the right of any unsecured general creditor of the Company or any subsidiary or
affiliate.

No Rights to Awards

No person shall have any claim to be granted any award and there is no obligation for uniformity of
treatment among Participants. The terms and conditions of awards, if any, need not be the same
with respect to each Participant.

2

 

Schedule A

2007 Measures and Weightings

	 	 	 	 	 	 	 	 	 
	 	 	EBITDA2	 	 	Other3	 
	Named Executive Officers1
	 	 	100	%	 	 	—	 
	 
	 	 	 	 	 	 
	All other Senior Officers
	 	 	80	%	 	 	20	%
	 
	 	 	 	 	 	 

 

			
	1	 	Named Executive Officers shall include the Chairman and Chief Executive
Officer, the President and Chief Operating Officer, the Executive Vice President and Chief
Financial Officer, and the Group Presidents.
	 
	2	 	Eastern, Central, Western and Outpatient Group executives’ EBITDA goals will be
based 50% on group performance and 50% on overall Company performance. For the purposes of this
calculation, EBITDA means earnings before income taxes, depreciation and amortization (but
excluding any expenses for share-based compensation under FAS-123R with respect to any awards
granted under the Program), as determined in good faith by the Board in consultation with the Chief
Executive Officer.
	 
	3	 	Other measures may include patient, physician, employee or client satisfaction,
or other individual goals.

2007 Named Executive Officer PEP Opportunities:

     Each Participant in the Program is assigned an annual award target expressed as a percentage
of salary. The annual award targets and maximums (as percentages of base salary) for officers who
were designated as Named Executive Officers for 2007 are as set forth below.

	 	 	 	 	 	 	 	 	 
	 	 	2007 Target	 	 	2007 Maximum	 
	Chairman & CEO
	 	 	120	%	 	 	240	%
	 
	 	 	 	 	 	 
	President & COO
	 	 	90	%	 	 	180	%
	 
	 	 	 	 	 	 
	Executive Vice President &CFO and Group Presidents
	 	 	60	%	 	 	120	%
	 
	 	 	 	 	 	 

     The annual award targets for senior officers other than the Named Executive Officers range
from 30% to 50% of base salary, with maximums ranging from 60% to 100% of base salary. Participants
shall receive 100% of the target award for target performance, 50% of the target award for a
minimum acceptable (threshold) level of performance, and a maximum of 200% of the target award for
maximum performance. Payouts between threshold and maximum shall be calculated by the Committee in
its sole discretion using interpolation. The threshold, target and maximum performance levels
shall be set by the Committee in its sole discretion.

3

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