Document:

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                                                                    Exhibit 10.3

           STOCKHOLDER'S AGREEMENT, dated as of ______________, between
Community Health Systems Holdings Corp., a Delaware corporation, and the
undersigned (the "Employee"), who was granted the right and option (the
"Option") to acquire shares of Class C Nonvoting Common Stock, par value $.01
per share, of the Company pursuant to the terms and conditions of the Community
Health Systems Holdings Corp. Employee Stock Option Plan (the "Plan") and a
Stock Option Agreement, dated as of March 31, 1999, between the Company and the
Employee (the "Option Agreement").

           WHEREAS, the Option Agreement requires the Employee to enter into a
Stockholder's Agreement upon and as a condition to the exercise of the Option;

           WHEREAS, the Employee wishes to exercise the Option to acquire
shares of Class C Common Stock; and

           WHEREAS, the Employee and the Company wish to provide for certain
arrangements with respect to the Employee's rights to hold and dispose of the
shares of Class C Common Stock acquired by the Employee upon exercise of the
Option.

           NOW, THEREFORE, the parties hereto agree as follows:

1. DEFINITIONS.

           1.1 DEFINITIONS; RULES OF CONSTRUCTION.

                (a) The following terms, as used herein, shall have the
following meanings:

                "Act" shall mean the Securities Act of 1933, as amended.

                "Affiliate" shall mean, with respect to any Person, any other
Person which, directly or indirectly, is in control of, is controlled by, or is
under common control with, such Person.

                "Affiliate Securities" shall mean any securities issued by
an Affiliate of the Company.

                "Agreement" shall mean this Stockholder's Agreement, as amended,
supplemented or modified from time to time.

                "Book Value of the Company" shall mean the sum of (i) the total
assets minus the total liabilities of the Company on a consolidated basis, plus
(ii) the
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amount of any reduction in stockholders' equity resulting from the application
of EITF Issue Summary No. 88-16, Basis in Leveraged Buyouts, as of the Valuation
Date. For purposes of calculating the Book Value of the Company and the Book
Value Per Share, (i) all options and other rights to acquire equity interests in
the Company outstanding immediately prior to the date of the Repurchase Notice
or exercised between the Valuation Date and the date of the Repurchase Notice
shall be deemed to have been exercised on the Valuation Date, and (ii) the
number of outstanding shares on the Valuation Date shall be increased by the
number of shares subject to each such option or other right and the assets of
the Company shall be increased by the aggregate exercise price payable in
respect of the exercise of each such option or other right (with respect to
clauses (i) and (ii), in the case of any such option or other right, unless the
effect thereof would be to increase the Book Value Per Share).

                "Book Value Per Share" shall mean the amount which would be
payable on the Valuation Date in respect of one share of Class C Common Stock in
the event of a dissolution, liquidation or winding-up of the affairs of the
Company if the amount of assets available for distribution in the event of such
dissolution, liquidation or winding-up with respect to all shares of capital
stock of the Company outstanding (or deemed to be outstanding, as set forth in
the definition of "Book Value of the Company") on the Valuation Date were equal
to the Book Value of the Company. In the event there has been a Stock Dividend
after the Valuation Date and prior to the date of the Repurchase Notice, the
number of shares outstanding for purposes of determining Book Value Per Share
shall be the number of shares that would have been outstanding immediately after
the Stock Dividend on the Valuation Date had the Stock Dividend occurred on the
Valuation Date.

                "Capital Transaction" shall mean any Stock Dividend,
recapitalization (including, without limitation, any special dividend or
distribution), reclassification, spin-off, partial liquidation or similar
capital adjustments (including, without limitation, through merger or
consolidation).

                "Certificate of Incorporation" shall mean the Restated
Certificate of Incorporation of the Company, as in effect from time to time.

                "CHS Hospital" shall have the meaning ascribed to such term in
the definition of Competitor.

                "Class A Common Stock" shall mean the Class A Common Stock, par
value $0.01 per share, of the Company. There shall be included within the term
Class A Common Stock any Class A Common Stock now or hereafter authorized to be
issued, and any and all securities of any kind whatsoever of the Company which
may be issued
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after the date hereof in respect of, or in exchange for, shares of Class A
Common Stock pursuant to a Capital Transaction or otherwise.

                "Class C Common Stock" shall mean the Class C Nonvoting Common
Stock, par value $0.01 per share, of the Company. There shall be included within
the term Class C Common Stock any Class C Common Stock now or hereafter
authorized to be issued, and any and all securities of any kind whatsoever of
the Company which may be issued after the date hereof in respect of, or in
exchange for, shares of Class C Common Stock pursuant to a Capital Transaction
or otherwise. Without limiting the generality of the foregoing, all references
herein to the Class C Common Stock shall include, and the provisions hereof
(including, without limitation, Sections 3 and 4 hereof) shall also be
applicable to, the Class A Common Stock for which the Class C Common Stock shall
be exchanged pursuant to the Certificate of Incorporation.

                "Class C Exchange Rate" shall have the meaning ascribed to such
term in Section 3.2 hereof.

                "Company" shall mean Community Health Systems Holdings Corp., a
Delaware corporation, and shall include any successor thereto by merger,
consolidation, acquisition of substantially all the assets thereof, or
otherwise.

                "Competing Hospital" shall have the meaning ascribed to such
term in the definition of Competitive Activity.

                "Competing Operations" shall have the meaning ascribed to such
term in the definition of Competitive Activity.

                "Competitive Activity" shall mean engaging in any of the
following activities: (i) serving as a director of any Competitor; (ii) directly
or indirectly (X) controlling any Competitor or (Y) owning any equity or debt
interests in any Competitor (other than equity or debt interests which are
publicly traded and do not exceed 2% of the particular class of interests then
outstanding) (it being understood that, if any such interests in any Competitor
are owned by an investment vehicle or other entity in which the Employee owns an
equity interest, a portion of the interests in such Competitor owned by such
entity shall be attributed to the Employee, such portion determined by applying
the percentage of the equity interest in such entity owned by the Employee to
the interests in such Competitor owned by such entity); (iii) directly or
indirectly soliciting, diverting, taking away, appropriating or otherwise
interfering with any of the customers or suppliers of the Company or any
Affiliate controlled by the Company; or (iv) employment by (including serving as
an officer of), or providing consulting services to, any Competitor; provided,
however, that if the Competitor has more than one discrete and readily
distinguishable part of its business, employment by
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or providing consulting services to any Competitor shall be Competitive Activity
only if (1) his or her employment duties are at or involving the part of the
Competitor's business that competes with any of the businesses conducted by the
Company or any of its subsidiaries (the "Competing Operations"), including
serving in a capacity where any person at the Competing Operations reports to
the Employee, or (2) the consulting services are provided to or involve the
Competing Operations. For purposes of this definition, the term "control" means
the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of any Competitor, whether through the
ownership of equity or debt interests, by contract or otherwise. Notwithstanding
the foregoing, the Employee shall not be deemed to be engaged in a Competitive
Activity so long as his or her employment duties are not at or involving any
general acute care hospital located within a 50-mile radius of any CHS Hospital
(a "Competing Hospital"), including serving in a capacity where any person at
the Competing Hospital reports to the Employee. For purposes hereof, a person
shall be deemed to report to the Employee whether he or she reports directly to
the Employee or indirectly through one or more other persons.

                "Competitor" shall mean any Person that is engaged in owning,
operating or acquiring directly or indirectly (through a corporation, trust,
partnership or other Person) one or more short-term, general acute care
hospitals located within a 50-mile radius of any hospital which, at the time the
Employee is Terminated, is owned or operated by the Company or any of its
subsidiaries or which the Company or any of its subsidiaries intend to own,
operate or acquire (which intention was disclosed to the Employee prior to or in
connection with his Termination) (a "CHS Hospital").

                "Expenses of Sale" shall mean all expenses incurred by the FL &
Co. Companies in connection with the sale of the shares of the selling
stockholders pursuant to Section 3.2, 3.3 or 3.4 hereof to the extent that such
expenses are not paid or reimbursed by the Company.

                "FL & Co. Companies" shall mean the collective reference to
Forstmann Little & Co. Equity Partnership-V, L.P., a Delaware limited
partnership, and Forstmann Little & Co. Subordinated Debt and Equity Management
Buyout Partnership-VI, L.P., a Delaware limited partnership.

                "Legal Representative" shall mean the guardian, executor,
administrator or other legal representative of the Employee. All references
herein to the Employee shall be deemed to include references to the Employee's
Legal Representative, if any, unless the context otherwise requires.

                "Litigation" shall mean any actions, suits or proceedings
arising out of or relating to this Agreement and the transactions contemplated
hereby.
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                "Option," "Option Agreement" and "Plan" shall have the
respective meanings ascribed to such terms in the first paragraph hereof.

                "Permitted Transferee" shall have the meaning ascribed to such
term in Section 3.1(b) hereof.

                "Person" shall mean an individual, a corporation, a partnership,
an association, a trust or any other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof.

                "Prohibited Activity" shall have the meaning ascribed to such
term in Section 4.1 hereof.

                "Release Date" shall mean the date on which the FL & Co.
Companies and their Affiliates shall cease to own in the aggregate directly or
indirectly at least 25 percent of the then outstanding securities of the Company
having the power to vote in the election of directors of the Company.

                "Representative" shall have the meaning ascribed to such term
in Section 6.13(b).

                "Repurchase Notice" shall have the meaning ascribed to such term
in Section 4.2 hereof.

                "Sale Obligations" shall mean any liabilities and obligations
(including liabilities and obligations for indemnification, amounts paid into
escrow and post-closing adjustments) incurred by the selling stockholders in
connection with the sale of their shares pursuant to Section 3.2, 3.3 or 3.4
hereof.

                "Section 3.2 Notice" shall have the meaning ascribed to such
term in Section 3.2(a) hereof.

                "Section 3.3 Notice" shall have the meaning ascribed to such
term in Section 3.3(a) hereof.

                "Stock Dividend" shall mean any stock split, stock dividend,
reverse stock split or similar transaction which changes the number of
outstanding shares of capital stock of the Company.

                "Terminated" or "Termination" shall mean that the Employee's
employment on a full-time basis by the Company and its subsidiaries shall have
ceased
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for any reason whatsoever (including by reason of death, permanent disability or
adjudicated incompetency).

                "Third Party" shall mean any Person other than any of the FL &
Co. Companies or an Affiliate or a partner of any of the FL & Co.
Companies or an Affiliate of such partner.

                "Transaction" shall mean any sale pursuant to Section 3.2,
3.3 or 3.4 hereof.

                "Valuation Date" shall mean the last day of the fiscal year of
the Company immediately preceding the fiscal year in which the Employee's
employment is Terminated.

                (b) In this Agreement, unless the context otherwise requires,
words in the singular number or in the plural number shall each include the
singular number and the plural number.

2. ACQUISITION OF CLASS C COMMON STOCK.

           2.1 EXERCISE OF OPTION. The Employee hereby elects to exercise the
Option in respect of the shares of Class C Common Stock set forth in Annex A
hereto. Promptly upon payment in full of the exercise price for the shares of
Class C Common Stock in respect of which the Option is being exercised and
compliance by the Employee with the other provisions of Article 5 of the Option
Agreement and Section 6.13(a)(ii) hereof, the Company shall issue a stock
certificate in the name of the Employee representing the shares of Class C
Common Stock in respect of which the Option is being exercised and shall enter
the Employee's name on the books of the Company as the stockholder of record of
such shares of Class C Common Stock.

3. RIGHTS AND RESTRICTIONS ON CLASS C COMMON STOCK.

           3.1 NO SALE OR TRANSFER.

                 (a) The Employee shall not sell, transfer, assign, exchange,
pledge, encumber or otherwise dispose of any shares of Class C Common Stock
acquired hereunder or grant any option or right to purchase such shares or any
legal or beneficial interest therein, except in accordance with the provisions
of this Agreement.

                 (b) The Employee may transfer any shares of Class C Common
Stock acquired hereunder by will, but only to:
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                       (i)   any spouse, parent, child (whether natural or
                             adopted), grandchild, brother or sister of the
                             Employee, or

                       (ii)  any corporation or partnership which is controlled
                             by any spouse, parent, child (whether natural or
                             adopted), grandchild, brother or sister of the
                             Employee

(the person or persons to which shares of Class C Common Stock are transferred
in accordance with this Section 3.1(b) being herein referred to as the
"Permitted Transferee"); provided, that, for any transfer to the Permitted
Transferee to be effective hereunder, the Permitted Transferee shall agree in
writing to be bound by all the terms of this Agreement applicable to the
Employee (including, without limitation, Sections 4 and 6.13(b) hereof) as if
the Permitted Transferee originally had been a party hereto; and provided,
further, that all of the stockholders of any Permitted Transferee that is a
corporation and all of the partners of any Permitted Transferee that is a
partnership shall agree in writing not to transfer any shares they then own or
may hereafter acquire in the corporate Permitted Transferee or any partnership
interests they then own or may hereafter acquire in the partnership Permitted
Transferee except to a person described in paragraph (i) or (ii) above that has
made the same agreement in writing to the Company, so long as the corporate or
partnership Permitted Transferee shall own any shares of Class C Common Stock.
Any reference herein to the Employee shall be to the Permitted Transferee from
and after the date the transfer is effected in accordance with this Section
3.1(b). Without limiting the generality of the foregoing, the provisions of
Section 4.2 hereof shall be likewise applicable to any Permitted Transferee,
commencing upon the date that such person becomes a Permitted Transferee, for
the respective periods they would have applied to the Employee.

           3.2 PARTICIPATION IN SALE OF CLASS A COMMON STOCK. The Employee, at
the Employee's option, may participate proportionately (and the FL & Co.
Companies shall allow the Employee to participate proportionately) in any sale
(other than a public offering, which shall be governed by Section 3.3 hereof) of
all or a portion of the shares of Class A Common Stock owned by either of the FL
& Co. Companies to any Third Party by (a) exchanging (i) the same percentage of
the Employee's shares of Class C Common Stock as the FL & Co. Companies propose
to sell of their shares of Class A Common Stock to the Third Party (determined
on the basis of the aggregate number of shares of Class A Common Stock owned,
and the aggregate number of such shares being sold, by the FL & Co. Companies)
for (ii) shares of Class A Common Stock in accordance with the Class C Exchange
Rate, as defined in Subsection 5(d) of Section A of Article Fourth of the
Certificate of Incorporation (the "Class C Exchange Rate"), and (b) selling the
Class A Common Stock received in such exchange to the Third Party. Schedule I
hereto sets forth an example illustrating the calculation of the Class C
Exchange Rate. For purposes of determining the number of shares of Class C
Common
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Stock in respect of which the Employee may participate in such sale pursuant to
this Section 3.2, the Employee shall be deemed to own the shares of Class C
Common Stock acquired upon exercise of the Option at any time plus the shares of
Class C Common Stock subject to any then unexercised portion of the Option, in
each case other than any shares with respect to which any section of this
Agreement (including Section 4.3 hereof) or the Option Agreement (including
Section 6.2(c) thereof) provides that the Employee may not participate in such
sale. The Company shall notify the Employee in writing of the FL & Co.
Companies' intention to effect such a sale to a Third Party and the nature and
per share amount of consideration to be paid by such Third Party, and shall set
forth its calculation of the Class C Exchange Rate, at least 10 days, or such
shorter time as the Company deems practicable, before the closing of any such
proposed sale of shares of Class A Common Stock (the "Section 3.2 Notice"), and
the Employee shall notify the Company in writing within five days after receipt
of the Section 3.2 Notice of his or her intention to participate in such sale,
including the number of shares of Class C Common Stock with respect to which he
or she will so participate. Any failure by the Employee to so notify the Company
within such five-day period shall be deemed an election by the Employee not to
participate in such sale with respect to any of his or her shares. Any sale of
shares of Class A Common Stock by the Employee pursuant to this Section 3.2
shall be for the same consideration per share, on the same terms and subject to
the same conditions as the sale of shares of Class A Common Stock owned by the
FL & Co. Companies. The Company shall, immediately prior to, and contingent
upon, the consummation of such sale, exchange the shares of Class C Common Stock
with respect to which the Employee will participate in the sale for shares of
Class A Common Stock in accordance with the Class C Exchange Rate. If the
Employee sells any shares of Class A Common Stock pursuant to this Section 3.2,
the Employee shall pay and be responsible for the Employee's proportionate share
of the Expenses of Sale and the Sale Obligations.

           3.3 PUBLIC OFFERING OF CLASS A COMMON STOCK.

                 (a) If the FL & Co. Companies propose to sell all or any
portion of the shares of Class A Common Stock owned by the FL & Co. Companies in
a public offering, the Employee shall be entitled and required to participate in
such public offering by selling in the public offering the same percentage of
the Employee's shares of Class A Common Stock (such Class A Common Stock having
been or being received by him pursuant to the Certificate of Incorporation,
which provides that, upon the initial public offering of shares of Class A
Common Stock, immediately prior to, and contingent upon, the consummation of the
offering, all outstanding shares of Class C Common Stock shall be exchanged for
shares of Class A Common Stock in accordance with the Class C Exchange Rate) as
the FL & Co. Companies propose to sell of their shares in the public offering
(determined on the basis of the aggregate number of shares of Class A Common
Stock owned, and the aggregate number of such shares being sold,
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by the FL & Co. Companies). For purposes of determining the number of shares of
Class A Common Stock in respect of which the Employee may participate in such
public offering pursuant to this Section 3.3, the Employee shall be deemed to
own the shares of Class C Common Stock acquired upon exercise of the Option at
any time plus the shares of Class C Common Stock subject to any then unexercised
portion of the Option, in each case other than any shares with respect to which
any section of this Agreement (including Section 4.3 hereof) or the Option
Agreement (including Section 6.2(c) thereof) provides that the Employee may not
participate in such public offering. The Company shall notify the Employee in
writing of the FL & Co. Companies' intention to effect such public offering at
least 10 days, or such shorter time as the Company deems practicable, before the
filing with the Securities and Exchange Commission of the registration statement
relating to such public offering (the "Section 3.3 Notice") and shall cause the
Employee's shares to be sold in such public offering to be included therein. The
Employee shall notify the Company in writing within five days after receipt of
the Section 3.3 Notice of his or her intention to participate in such public
offering, including the number of shares of Class C Common Stock with respect to
which he or she will so participate. Any failure by the Employee to so notify
the Company within such five-day period shall be deemed an election by the
Employee not to participate in such public offering with respect to any of his
or her shares. If the Employee sells any shares of Class A Common Stock pursuant
to this Section 3.3, the Employee shall pay and be responsible for the
Employee's proportionate share of the Expenses of Sale and the Sale Obligations,
including, without limitation, indemnifying the underwriters of such public
offering, on a proportionate basis, to the same extent as the FL & Co. Companies
are required to indemnify such underwriters.

                (b) In connection with any proposed public offering of
securities of the Company, whether by any of the FL & Co. Companies or the
Company or otherwise, the Employee agrees (i) to supply any information
reasonably requested by the Company in connection with the preparation of a
registration statement and/or any other documents relating to such public
offering, and (ii) to execute and deliver any agreements and instruments
reasonably requested by the Company to effectuate such public offering,
including, without limitation, an underwriting agreement, a custody agreement
and a "hold back" agreement pursuant to which the Employee will agree not to
sell or purchase any securities of the Company (whether or not such securities
are otherwise governed by this Agreement) for the same period of time following
the public offering as is agreed to by the FL & Co. Companies with respect to
themselves. If the Company requests that the Employee take any of the actions
referred to in clause (i) or (ii) of the previous sentence, the Employee shall
take such action promptly but in any event within five days following the date
of such request.

           3.4 REQUIRED PARTICIPATION IN SALE OF CLASS A COMMON STOCK BY THE FL
& CO. COMPANIES. Notwithstanding any other provision of this Agreement to the
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contrary, if the FL & Co. Companies shall propose to sell (including by
exchange, in a business combination or otherwise) all or any portion of their
shares of Class A Common Stock in a bona fide arm's-length transaction, the FL &
Co. Companies, at their option, may require that (x) the Employee exchange the
same percentage of the Employee's shares of Class C Common Stock as the FL & Co.
Companies propose to sell of their shares in the transaction (determined on the
basis of the aggregate number of shares of Class A Common Stock owned, and the
aggregate number of such shares then being sold, by the FL & Co. Companies) for
shares of Class A Common Stock in accordance with the Class C Exchange Rate, and
(y) sell all the Class A Common Stock received in such exchange for the same
consideration per share, on the same terms and subject to the same conditions in
the same transaction and, if stockholder approval of the transaction is required
and the Employee is entitled to vote thereon, that the Employee vote the
Employee's shares in favor thereof. For purposes of determining the number of
shares of Class C Common Stock in respect of which the Employee is to
participate in such sale pursuant to this Section 3.4, the Employee shall be
deemed to own the shares of Class C Common Stock acquired upon exercise of the
Option at any time plus the shares of Class C Common Stock subject to any then
unexercised portion of the Option, in each case other than any shares with
respect to which any section of this Agreement (including Section 4.3 hereof) or
the Option Agreement (including Section 6.2(c) thereof) provides that the
Employee may not participate in such sale. The Company shall calculate the Class
C Exchange Rate and shall, immediately prior to, and contingent upon, the
consummation of the transaction, exchange the shares of Class C Common Stock
with respect to which the Employee will participate in the transaction for
shares of Class A Common Stock in accordance with the Class C Exchange Rate. If
the Employee sells any shares pursuant to this Section 3.4, the Employee shall
pay and be responsible for the Employee's proportionate share of the Expenses of
Sale and the Sale Obligations.

           3.5 TERMINATION OF RESTRICTIONS AND RIGHTS. Notwithstanding any other
provision of this Agreement to the contrary, but subject to the restrictions of
all applicable federal and state securities laws, including the restrictions in
this Agreement relating thereto, from and after the Release Date any and all
shares of Class C Common Stock owned by the Employee (a) may be sold,
transferred, assigned, exchanged, pledged, encumbered or otherwise disposed of
(and the Employee may grant any option or right to purchase such shares or any
legal or beneficial interest therein, or may continue to hold such shares), free
of the restrictions contained in this Agreement and (b) shall no longer be
entitled to any of the rights contained in this Agreement. Without limiting the
generality of the foregoing, from and after the Release Date, the provisions of
Articles 3 and 4 hereof (other than this Section 3.5 and Section 4.1 hereof)
shall terminate and have no further force or effect.
<PAGE>

4. PROHIBITED ACTIVITIES.

           4.1 PROHIBITION AGAINST CERTAIN ACTIVITIES. The Employee agrees that
(a) the Employee will not, at any time during the Employee's employment (other
than in the course of such employment) with the Company or any Affiliate thereof
or after a Termination, directly or indirectly disclose or furnish to any other
Person or use for the Employee's own or any other Person's account any
confidential or proprietary knowledge or information or any other information
which is not a matter of public knowledge and which was obtained in the course
of the Employee's employment with, or other performance of services for, the
Company or any Affiliate thereof or any predecessor of any of the foregoing, no
matter from where or in what manner the Employee may have acquired such
knowledge or information, and the Employee shall retain all such knowledge and
information in trust for the benefit of the Company, its Affiliates and the
successors and assigns of any of them, (b) if the Employee is Terminated, the
Employee will not for 18 months following such Termination directly or
indirectly solicit for employment, including without limitation recommending to
any subsequent employer the solicitation for employment of, any employee of the
Company (other than such Employee's secretary or administrative assistant), (c)
the Employee will not, at any time during the Employee's employment with the
Company or any Affiliate thereof or after a Termination, publish any statement
or make any statement (under circumstances reasonably likely to become public or
that the Employee might reasonably expect to become public) critical of the
Company or any Affiliate of the Company, or in any way adversely affecting or
otherwise maligning the business or reputation of any of the foregoing entities,
and (d) the Employee will not breach the provisions of Section 3.1 hereof (any
activity prohibited by clause (a), (b), (c) or (d) of this Section 4.1 being
referred to as a "Prohibited Activity").

           4.2 RIGHT TO PURCHASE SHARES. The Employee understands and agrees
that the Company has granted to the Employee the right to acquire shares of
Class C Common Stock to reward the Employee for the Employee's future efforts
and loyalty to the Company and its Affiliates by giving the Employee the
opportunity to participate in the potential future appreciation of the Company.
Accordingly, (a) if the Employee engages in any Prohibited Activity, or (b) if,
at any time during the Employee's employment with the Company or any of its
Affiliates or during the 18 months following a Termination, the Employee engages
in any Competitive Activity, or (c) if, at any time (whether during the
Employee's employment or after any Termination thereof), the Employee is
convicted of a crime against the Company or any of its Affiliates, then, in
addition to any other rights and remedies available to the Company, the Company
shall be entitled, at its option, exercisable by written notice (the "Repurchase
Notice") to the Employee, to purchase all of the shares of Class C Common Stock
then held by the Employee.
<PAGE>

           4.3 PURCHASE PRICE; CLOSING. The purchase price per share of the
shares of Class C Common Stock purchased pursuant to this Article 4 shall be
equal to the lesser of (a) $587.50 (adjusted to reflect any Capital Transaction
effected after the date hereof and prior to the date of the Repurchase Notice)
and (b) the Book Value Per Share. The closing of such purchase shall take place
at the principal office of the Company 10 days following the date of the
Repurchase Notice, except that if the Company is prohibited from repurchasing
any shares of Class C Common Stock pursuant to this Article 4 by any contractual
obligation of the Company or any of its Affiliates or by applicable law, the
closing of such purchase shall take place on the first practicable date on which
the Company is permitted to purchase such shares. At such closing, the Employee
shall sell, convey, transfer, assign and deliver to the Company all right, title
and interest in and to the shares of Class C Common Stock being purchased by the
Company, which shall constitute (and, at the closing, the Employee shall certify
the same to the Company in writing) good and unencumbered title to such shares,
free and clear of all liens, security interests, encumbrances and adverse claims
of any kind and nature (other than those in favor of the Company and the FL &
Co. Companies pursuant to this Agreement), and shall deliver to the Company the
certificates representing the shares duly endorsed for transfer, or accompanied
by appropriate stock transfer powers duly executed, and with all necessary
transfer tax stamps affixed thereto at the expense of the Employee, and the
Company shall deliver to the Employee, in full payment of the purchase price
payable pursuant to this Section 4.3 for the shares of Class C Common Stock
purchased, a check payable to the order of the Employee in the amount of the
aggregate purchase price for the shares purchased. Notwithstanding anything
herein to the contrary, from and after the date of the Repurchase Notice, the
Employee shall not have any rights with respect to any shares of Class C Common
Stock which the Employee is required to sell to the Company pursuant to this
Article 4 (including any rights pursuant to Section 3.2 or 3.3 hereof), except
to receive the purchase price therefor.

           4.4 TRANSACTION PROCEEDS. Notwithstanding anything to the contrary
set forth in Section 3.2, 3.3 or 3.4 hereof, if at the time of a Transaction in
which the Employee is participating, the Company is entitled to purchase the
Employee's shares of Class C Common Stock pursuant to this Article 4, and if the
purchase price per share for a purchase pursuant to this Article 4 would be less
than the proceeds per share to the Employee from such Transaction, then the
Employee shall be entitled to receive only the aggregate purchase price payable
under this Article 4, with the balance of the proceeds of sale in the
Transaction being remitted to the other stockholders of the Company
participating in such Transaction pro rata in accordance with their respective
participation in such Transaction.
<PAGE>

5.  STOCK CERTIFICATE LEGEND AND INVESTMENT REPRESENTATIONS; OTHER
    REPRESENTATIONS.

           5.1 LEGEND. All certificates representing shares of Class C Common
Stock acquired hereunder or hereafter by the Employee (unless registered under
the Act) shall bear the following legend:

                 "The shares represented by this certificate have not been
           registered under the Securities Act of 1933, as amended, or any
           securities regulatory authority of any state, and may not be sold,
           transferred, assigned, exchanged, pledged, encumbered or otherwise
           disposed of except in compliance with all applicable securities laws
           and except in accordance with the provisions of a Stockholder's
           Agreement with the Company, a copy of which is available for
           inspection at the offices of the Company."

           5.2 REPRESENTATIONS OF THE EMPLOYEE. The Employee represents and
warrants that: (a) the Employee understands that (i) the offer and sale of
shares of Class C Common Stock in accordance with this Agreement have not been
and will not be registered under the Act, and it is the intention of the parties
hereto that the offer and sale of the securities be exempt from registration
under the Act and the rules promulgated thereunder by the Securities and
Exchange Commission; (ii) the shares of Class C Common Stock being acquired
hereunder cannot be sold, transferred, assigned, exchanged, pledged, encumbered
or otherwise disposed of unless they are registered under the Act or an
exemption from registration is available; and (iii) the acquisition of Class C
Common Stock hereunder does not entitle the Employee to participate in any other
equity program of the Company, whether now existing or hereafter established;
(b) the Employee is acquiring the shares of Class C Common Stock being acquired
hereunder for investment for the Employee's own account and not with a view to
the distribution thereof; (c) the Employee will not, directly or indirectly,
sell, transfer, assign, exchange, pledge, encumber or otherwise dispose of any
shares of Class C Common Stock being acquired hereunder except in accordance
with this Agreement; (d) the Employee has, or the Employee together with the
Employee's advisers, if any, have, such knowledge and experience in financial
and business matters that the Employee is, or the Employee together with the
Employee's advisers, if any, are, and will be capable of evaluating the merits
and risks relating to the Employee's acquisition of shares of Class C Common
Stock under this Agreement; (e) the Employee has been given the opportunity to
obtain information and documents relating to the Company and to ask questions of
and receive answers from representatives of the Company concerning the Company
and the Employee's investment in the Class C Common Stock; (f) the Employee's
decision to invest in the Company has been based upon independent investigations
made by the Employee and the Employee's advisers, if any; (g) the
<PAGE>

Employee is able to bear the economic risk of a total loss of the Employee's
investment in the Company; and (h) the Employee has adequate means of providing
for the Employee's current needs and foreseeable personal contingencies and has
no need for the Employee's investment in the Class C Common Stock to be liquid.

6. MISCELLANEOUS.

           6.1 DISTRIBUTIONS. In the event of any dividend, distribution or
exchange paid or made in respect of the Class C Common Stock consisting of
Affiliate Securities, (a) the restrictions and rights with respect to the Class
C Common Stock that are contained in this Agreement shall be applicable to the
Affiliate Securities without further action of the parties (with the references
to Class C Common Stock being deemed references to the Affiliate Securities and
the references to the Company being deemed references to the Affiliate), and (b)
as a condition precedent to the receipt of the Affiliate Securities by the
Employee, the Employee shall enter into a stockholder's agreement containing
substantially equivalent terms with respect to the Affiliate Securities (but
reflecting the economics of the dividend, distribution or exchange and the
capitalization of the Affiliate) as are contained in Section 4.3 hereof. The
Board of Directors of the Company, in good faith, shall determine such economics
and its determination shall be final and binding on the Employee.

           6.2 FURTHER ASSURANCES. Each party hereto shall do and perform or
cause to be done and performed all further acts and things and shall execute and
deliver all other agreements, certificates, instruments, and documents as any
other party hereto reasonably may request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

           6.3 GOVERNING LAW. This Agreement and the rights and obligations of
the parties hereto shall be governed by, and construed and enforced in
accordance with, the laws of the State of New York, without giving effect to the
principles of conflicts of law thereof.

           6.4 SPECIFIC PERFORMANCE. The parties hereto acknowledge that there
will be no adequate remedy at law for a violation of any of the provisions of
this Agreement and that, in addition to any other remedies which may be
available, all of the provisions of this Agreement shall be specifically
enforceable in accordance with their respective terms.

           6.5 INVALIDITY OF PROVISIONS. The invalidity or unenforceability of
any provision of this Agreement in any jurisdiction shall not affect the
validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of this Agreement, including that
provision, in any other jurisdiction. If
<PAGE>

any provision of this Agreement is held unlawful or unenforceable in any
respect, such provision shall be revised or applied in a manner that renders it
lawful and enforceable to the fullest extent possible.

           6.6 NOTICE. All notices and other communications hereunder shall be
in writing and, unless otherwise provided herein, shall be deemed to have been
given when received by the party to whom such notice is to be given at its
address set forth below, or such other address for the party as shall be
specified by notice given pursuant hereto:

                (a)  If to the Company, to:

                     Community Health Systems Holdings Corp.
                     155 Franklin Road, Suite 400
                     Brentwood, TN  37027-4600
                     Attention:  President

                     with a copy to:

                     Forstmann Little & Co. Equity Partnership-V, L.P.
                     767 Fifth Avenue, 44th Floor
                     New York, New York  10153
                     Attention:  Ms. Sandra J. Horbach

                (b)  If to the Employee, to the address set forth below the
                     Employee's signature, and if to the Legal Representative,
                     to such Person at the address of which the Company is
                     notified in accordance with this Section 6.6.

           6.7 BINDING EFFECT. This Agreement shall inure to the benefit of and
shall be binding upon the parties hereto and their respective heirs, legal
representatives, successors and assigns. In addition, each of the FL & Co.
Companies shall be a third party beneficiary of this Agreement and shall be
entitled to enforce this Agreement.

           6.8 AMENDMENT AND MODIFICATION. This Agreement may be amended,
modified or supplemented only by written agreement of the party against whom
enforcement of such amendment, modification or supplement is sought.

           6.9 HEADINGS; EXECUTION IN COUNTERPARTS. The headings and captions
contained herein are for convenience only and shall not control or affect the
meaning or construction of any provision hereof. This Agreement may be executed
in any number of counterparts, each of which shall be deemed to be an original
and which together shall constitute one and the same instrument.
<PAGE>

           6.10 ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement, and supersedes all prior agreements and understandings, oral and
written, between the parties hereto with respect to the subject matter hereof.

           6.11 WITHHOLDING. The Company shall have the right to deduct from any
amount payable under this Agreement any taxes or other amounts required by
applicable law to be withheld. The Employee agrees to indemnify the Company
against any Federal, state and local withholding taxes (but not penalties or
interest) for which the Company may be liable in connection with the Employee's
acquisition, ownership or disposition of any Class C Common Stock.

           6.12 NO RIGHT TO CONTINUED EMPLOYMENT. This Agreement shall not
confer upon the Employee any right with respect to continuance of employment by
the Company or any Affiliate thereof, nor shall it interfere in any way with the
right of the Company or any Affiliate thereof to terminate the Employee's
employment at any time.

           6.13 POSSESSION OF CERTIFICATES; POWER OF ATTORNEY.

                (a) In order to provide for the safekeeping of the certificates
representing the shares of Class C Common Stock acquired by the Employee
pursuant hereto and to facilitate the enforcement of the terms and conditions
hereof, (i) the Company shall retain physical possession of all certificates
representing shares of Class C Common Stock issued to the Employee, and (ii)
concurrently with the Employee's execution and delivery to the Company of this
Agreement, the Employee shall deliver to the Company an undated stock power,
duly executed in blank, for each such certificate. The Employee shall be
relieved of any obligation otherwise imposed by this Agreement to deliver
certificates representing shares of Class C Common Stock if the same are in the
custody of the Company.

                (b) The Employee hereby irrevocably appoints the FL & Co.
Companies, and each of them (individually and collectively, the
"Representative"), the Employee's true and lawful agent and attorney-in-fact,
with full powers of substitution, to act in the Employee's name, place and
stead, to do or refrain from doing all such acts and things, and to execute and
deliver all such documents, as the Representative shall deem necessary or
appropriate in connection with a public offering of securities of the Company or
a sale pursuant to Section 3.2, 3.4 or 4.2 hereof, including, without in any way
limiting the generality of the foregoing, in the case of a sale pursuant to
Section 3.2 or 3.4 hereof, to execute and deliver on behalf of the Employee a
purchase and sale agreement and any other agreements and documents that the
Representative deems necessary in connection with any such sale, and in the case
of a public offering, to execute and deliver on behalf of the Employee an
underwriting agreement, a "hold
<PAGE>

back" agreement, a custody agreement, and any other agreements and documents
that the Representative deems necessary in connection with any such public
offering, and in the case of any sale pursuant to Section 3.2 or 3.4 hereof and
any public offering pursuant to Section 3.3(a) hereof, to receive on behalf of
the Employee the proceeds of the sale or public offering of the Employee's
shares, to hold back from any such proceeds any amount that the Representative
deems necessary to reserve against the Employee's share of any Expenses of Sale
and Sale Obligations and to pay such Expenses of Sale and Sale Obligations. The
Employee hereby ratifies and confirms all that the Representative shall do or
cause to be done by virtue of its appointment as the Employee's agent and
attorney-in-fact. In acting for the Employee pursuant to the appointment set
forth in this Section 6.13(b), the Representative shall not be responsible to
the Employee for any loss or damage the Employee may suffer by reason of the
performance by the Representative of its duties under this Agreement, except for
loss or damage arising from willful violation of law or gross negligence by the
Representative in the performance of its duties hereunder. The appointment of
the Representative shall be deemed coupled with an interest and as such shall be
irrevocable and shall survive the death, incompetency, mental illness or
insanity of the Employee, and any person dealing with the Representative may
conclusively and absolutely rely, without inquiry, upon any act of the
Representative as the act of the Employee in all matters referred to in this
Section 6.13(b). The Representative shall advise the Employee in writing of any
Sale Obligations imposed on the Employee in any document executed by the
Representative as the Employee's attorney-in-fact pursuant to this Section
6.13(b).

           6.14 CONSENT TO JURISDICTION. Each party hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction of the courts
of the State of New York and of the United States of America, in each case
located in the County of New York, for any Litigation (and agrees not to
commence any Litigation except in any such court), and further agrees that
service of process, summons, notice or document by U.S. registered mail to such
party's respective address set forth in Section 6.6 hereof shall be effective
service of process for any Litigation brought against such party in any such
court. Each party hereby irrevocably and unconditionally waives any objection to
the laying of venue of any Litigation in the courts of the State of New York or
of the United States of America, in each case located in the County of New York,
and hereby further irrevocably and unconditionally waives and agrees not to
plead or claim in any such court that any Litigation brought in any such court
has been brought in an inconvenient forum.
<PAGE>

           IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of
each of the parties hereto, all as of the date first above written.

EMPLOYEE                               COMMUNITY HEALTH SYSTEMS
                                       HOLDINGS CORP.

______________________________         By: ______________________________
Name:                                      Title:
Address:

The undersigned hereby agree to be bound by the provisions of Sections 3.2 and
3.3 of the foregoing Agreement.

                                  FORSTMANN LITTLE & CO. EQUITY
                                  PARTNERSHIP-V, L.P.

                                  By: FLC XXX Partnership,
                                      its general partner

                                      By: ____________________________
                                          Sandra J. Horbach,
                                          a general partner

                                  FORSTMANN LITTLE & CO. SUBORDINATED
                                  DEBT AND EQUITY MANAGEMENT
                                  BUYOUT PARTNERSHIP-VI, L.P.

                                  By: FLC XXIX Partnership,
                                      its general partner

                                      By: ____________________________
                                          Sandra J. Horbach,
                                          a general partner
<PAGE>

           The undersigned acknowledges that the undersigned has read the
foregoing Agreement between Community Health Systems Holdings Corp. and the
undersigned's spouse, understands that the undersigned's spouse has acquired
shares of Class C Common Stock of Community Health Systems Holdings Corp. as
reflected in such Agreement and agrees to be bound by the foregoing Agreement.

                                      ___________________________
                                      Employee's Spouse
<PAGE>

                                     ANNEX A

<TABLE>
<CAPTION>
                     Number Of Shares In              Cumulative Number Of
                     Respect Of Which Option          Shares Subject To The
                     Is Being Exercised On            Stockholder's Agreement
Date                 The Date Indicated               On The Date Indicated
----                 ------------------               ---------------------
<S>                  <C>                              <C>

</TABLE>
<PAGE>

                                   SCHEDULE I

Assume:  1)       Aggregate amount of assets available for distribution is
                  $2,200,000,000. THERE IS NO ASSURANCE THAT THE ACTUAL AMOUNT
                  OF ASSETS AVAILABLE FOR DISTRIBUTION WILL REACH THIS LEVEL.
         2)       449,123 shares of Class A Common Stock and 39,600 shares of
                  Class B Common Stock outstanding, and options granted to
                  acquire 9,000 shares of Class C Common Stock and 1,600 shares
                  of Class A Common Stock, all at the time of distribution.

<TABLE>
<CAPTION>
STEP 1
------
                                                                       To                 To                To
                                                                     CLASS A            CLASS B           CLASS C
                                                                     -------            -------           -------
<S>                     <C>                       <C>              <C>                <C>                <C>
First to A:             $1,073.52     x           450,723    =     $483,860,155

Second to B:               357.84     x            39,600    =                        $14,170,464
Third to C:                587.50     x             9,000    =                                           $5,287,500

Fourth to A:               279.17     x           450,723    =      125,828,340
and to C:                  279.17     x             9,000    =                                            2,512,530

Fifth to A               3,140.93*    x           450,723    =
and to B:                3,140.93*    x            39,600    =    1,415,691,577       124,381,020        28,268,414
                                                                  -------------       -----------        ----------
and to C:                3,140.93*    x             9,000    =

Total                                                            $2,025,380,072      $138,551,484       $36,068,444
                                                                 ==============      ============       ===========

STEP 2                                                         PER SHARE PROCEEDS   COST OF SHARES        NET GAIN
------                                                         ------------------   --------------        --------
           x = $ total for Class A divided by 450,723        =        $4,493.62        ($1,073.52)        $3,420.10
STEP 3
------
           y = $ total for Class B divided by 39,600         =        $3,498.77          ($357.84)        $3,140.93
STEP 4
------
           z = $ total for Class C divided by 9,000          =        $4,007.60          ($587.50)        $3,420.10

</TABLE>

Class B Exchange Rate = y/x or 0.779 of a share of Class A Common Stock for each
share of Class B Common Stock.

Class C Exchange Rate = z/x or 0.892 of a share of Class A Common Stock for each
share of Class C Common Stock.

---------------

*     Equals $2,200,000,000 less the payments from the first, second, third and
      fourth steps ($631,658,989) divided by 499,323 (449,123 plus 39,600 plus
      9,000 plus 1,600), rounded for presentation purposes.<PAGE>

                                                                    Exhibit 10.4

                     COMMUNITY HEALTH SYSTEMS HOLDINGS CORP.

                           EMPLOYEE STOCK OPTION PLAN

            1. PURPOSE. The purpose of the Community Health Systems Holdings
Corp. Employee Stock Option Plan is to provide financial incentives to employees
of the Company or its direct or indirect wholly owned subsidiaries whose
entrepreneurial and management talents and commitments will contribute to the
continued growth and expansion of the Company's business.

                  The options granted under the Plan are not intended to qualify
as Incentive Stock Options within the meaning of Section 422 of the Code.

            2. DEFINITIONS. For purposes of this Plan:

                  (a) "Affiliate" means any person directly or indirectly
controlling, controlled by or under common control with the person of which it
is an Affiliate.

                  (b) "Board" means the Board of Directors of the Company or the
Executive Committee of the Board of Directors of the Company.

                  (c) "Class A Common Stock" means the Class A Common Stock, par
value $.01 per share, of the Company and any other securities into which such
shares are changed or for which such shares are exchanged.

                  (d) "Class C Common Stock" means the Class C Nonvoting Common
Stock, par value $.01 per share, of the Company and any other securities into
which such shares are changed or for which such shares are exchanged, including
as described in Section 7 hereof.

                  (e) "Code" means the Internal Revenue Code of 1986, as
amended.
<PAGE>

                  (f) "Committee" means the Compensation Committee of the Board
of Directors of the Company, unless otherwise specified by the Board, in which
event the committee shall be as specified by the Board, which committee shall
administer the Plan and perform the functions set forth herein.

                  (g) "Company" means Community Health Systems Holdings Corp., a
Delaware corporation, and any successor to Community Health Systems Holdings
Corp. by merger, consolidation or otherwise.

                  (h) "Eligible Person" means any employee of the Company or any
of its direct or indirect wholly owned subsidiaries whom the Committee
designates as eligible to receive Options under the Plan.

                  (i) "FL & Co. Companies" means individually and collectively
Forstmann Little & Co. Equity Partnership-V, L.P., a Delaware limited
partnership, and Forstmann Little & Co. Subordinated Debt and Equity Management
Buyout Partnership-VI, L.P., a Delaware limited partnership.

                  (j) "Initial Public Offering" means the first Public Offering.

                  (k) "Legal Representative" means the guardian, executor,
administrator or other legal representative of the Optionee. All references
herein to the Optionee shall be deemed to include references to the Optionee's
Legal Representative, if any, unless the context otherwise requires.

                  (l) "Option" means an option to purchase shares of Class C
Common Stock granted under the Plan.

                  (m) "Optionee" means a person to whom an Option has been
granted under the Plan.

                  (n) "Option Price" means the price at which a share of Class C
Common Stock can be purchased pursuant to an Option.

                                      -2-
<PAGE>

                  (o) "Plan" means the Community Health Systems Holdings Corp.
Employee Stock Option Plan as set forth in this instrument and as it may be
amended from time to time.

                  (p) "Public Offering" means a public offering of Class A
Common Stock registered under the Securities Act of 1933, as amended.

                  (q) "Stock Option Agreement" means the written agreement
between an Optionee and the Company evidencing the grant of an Option under the
Plan and setting forth the terms and conditions of that Option.

                  (r) "Stockholder's Agreement" means the Stockholder's
Agreement governing the rights, duties and obligations of present or former
employees of the Company with respect to shares of Class C Common Stock granted
or sold to such persons, or issued pursuant to options granted or sold to such
persons, in the form attached hereto as Annex I or such form as is in use by the
Company at the time of exercise of the Option or any part thereof or such other
form which the Company elects to require the Optionee to execute in connection
with the Optionee's exercise of the Option. All references in any Stock Option
Agreement to sections of a Stockholder's Agreement shall be to sections of the
Stockholder's Agreement which is attached hereto or to the corresponding
sections of any Stockholder's Agreement in use by the Company at the time of
exercise of any Option or which the Company elects to require the Optionee to
execute in connection with the Optionee's exercise of the Option.

                  (s) "Third Party" means any person or entity which is not any
of the FL & Co. Companies or a partner or an Affiliate of any of the FL & Co.
Companies or an Affiliate of such partner.

                  (t) "Total Private Sale" means any of the following events:
(i) the merger or consolidation of the Company with or into another corporation
(other than a merger or consolidation in which the Company is the surviving
corporation and which does not result in any capital reorganization or
reclassification or other change of

                                      -3-
<PAGE>

the then outstanding shares of Class A Common Stock), or (ii) the liquidation of
the Company, or (iii) the sale to a Third Party of all or substantially all of
the assets of the Company pursuant to a plan of liquidation or otherwise, or
(iv) the sale to a Third Party of Class A Common Stock (other than through a
Public Offering); in each case provided that, as a result thereof, the FL & Co.
Companies, the direct and indirect partners of any of the FL & Co. Companies and
any Affiliates of any of the foregoing cease to own, directly or indirectly, any
shares of the voting stock of the Company.

            3. ADMINISTRATION. The Plan shall be administered by the Committee,
which shall hold meetings when it deems necessary and shall keep minutes of its
meetings. The Committee shall have all of the powers necessary to enable it to
carry out its duties under the Plan properly, including the power and duty to
construe and interpret the Plan and to determine all questions arising under it.
The Committee's interpretations and determinations shall be conclusive and
binding upon all persons. The Committee may also establish, from time to time,
such regulations, provisions, procedures and conditions regarding the Options
and granting of Options which in its opinion may be advisable in administering
the Plan. The acts of a majority of the total membership of the Committee at any
meeting, or the acts approved in writing by all of its members, shall be the
acts of the Committee; provided, that if at any time the Committee is the Board,
the acts of a majority of the members of the Board present at any meeting, or
the acts approved in writing by all of its members, shall be the acts of the
Committee.

            4. SHARES AVAILABLE FOR OPTION.

                  (a) The Committee shall have the authority to grant Options to
purchase up to an aggregate of 9,000 shares of Class C Common Stock.

                  (b) In the event that an Option granted under the Plan to any
Eligible Person expires or is for any other reason terminated, those shares of
Class C Common Stock covered by any portion of such Option that has not been
exercised prior thereto shall thereafter be available for the granting of future
Options under the Plan.

                                      -4-
<PAGE>

                  (c) The Company may, but shall not be required to, reserve out
of its authorized but unissued shares of Class C Common Stock, or out of shares
of Class C Common Stock held in treasury, or partly out of each, as may be
determined by the Board, shares of Class C Common Stock for issuance upon
exercise of any Option.

            5. GRANTING OPTIONS.

                  (a) Subject to the provisions of the Plan, the Committee shall
have full and final authority to select those Eligible Persons who will receive
Options. The Committee may also grant more than one Option to a given Eligible
Person during the term of the Plan, either in addition to, or in substitution
for, one or more Options previously granted that Eligible Person. Options shall
be issued pursuant to a Stock Option Agreement, in form and substance approved
by the Committee, executed by the Company and the Optionee.

                  (b) The Committee, in its sole discretion, shall establish the
Option Price at the time an Option is granted.

                  (c) The terms of each Option granted under the Plan may differ
from those of other Options granted under the Plan at the same time, or at some
other time.

                  (d) An Option shall be exercisable in such installments (which
need not be equal) and at such times as may be designated by the Committee and
set forth in the Stock Option Agreement. To the extent not exercised,
installments may accumulate and be exercisable, in whole or in part, at any time
after becoming exercisable, but not later than the date the Option expires. The
Committee may accelerate the exercisability of any Option or portion thereof at
any time. In no event shall the term of any Option granted under the Plan exceed
ten years.

                  (e) Options granted under the Plan shall not be transferable
by the Optionee except as approved by the Committee as reflected in the Stock
Option Agreement.

                                      -5-
<PAGE>

                  (f) Subject to the terms and conditions and within the
limitations of the Plan, the Committee may modify, extend, replace or renew
outstanding Options granted under the Plan, or accept the surrender of
outstanding Options (to the extent they have not yet been exercised) and grant
new Options in substitution for them. Notwithstanding the foregoing, however, no
modification of an Option shall adversely alter or impair any rights or
obligations under that Option without the affected Optionee's consent.

            6. EXERCISE OF OPTIONS.

                  (a) To exercise an Option, in whole or in part, the Optionee
shall deliver to the Committee a written notice of exercise specifying the
number of shares of Class C Common Stock in respect of which the Option is being
exercised. The Stock Option Agreement shall set forth the minimum number of
shares of Class C Common Stock, if any, which may be purchased at any one time
upon the exercise of an Option. An Optionee shall not be deemed the holder of
any shares of Class C Common Stock subject to the Option or have any rights of a
stockholder with respect thereto until the Option shall have been exercised in
accordance with the terms of the Stock Option Agreement, the shares of Class C
Common Stock in respect of which the Option was exercised shall have been issued
to such Optionee and the name of such Optionee shall have been entered as a
stockholder of record on the books of the Company. The Stock Option Agreement
may contain such other conditions to the exercise of an Option as the Committee
from time to time shall determine and may also contain provisions relating to
the ownership of the shares of Class C Common Stock issued upon the exercise of
the Option or may require the Optionee, as a condition of exercise of the
Option, to execute a Stockholder's Agreement.

                  (b) Except as provided in the Stock Option Agreement, any
Options held by an Optionee shall not be exercisable after the termination of
the Optionee's employment with the Company. In addition, except as provided in
the Stock

                                      -6-
<PAGE>

Option Agreement, Options granted under the Plan shall be exercisable only by
the Optionee or the Optionee's Legal Representative.

                  (c) All certificates representing shares of Class C Common
Stock issued pursuant to the exercise of an Option shall bear the following
legend:

                  "The shares represented by this certificate have not been
                  registered under the Securities Act of 1933, as amended, or
                  any securities regulatory authority of any state, and may not
                  be sold, transferred, assigned, exchanged, pledged, encumbered
                  or otherwise disposed of except in compliance with all
                  applicable securities laws and except in accordance with the
                  provisions of a Stockholder's Agreement with the Company, a
                  copy of which is available for inspection at the offices of
                  the Company."

            or such other legend to the same effect as approved by the
Committee.

                  (d) To the extent that an Option is not exercised prior to the
expiration of its term or such shorter period of time prescribed by the Plan and
the Stock Option Agreement, the Option shall lapse and all rights of the
Optionee with respect thereto shall terminate.

            7. CHANGES IN CLASS C COMMON STOCK.

                  (a) In the event that the outstanding shares of Class C Common
Stock are changed into or exchanged for a different number or kind of shares of
stock or other securities of the Company, whether through merger, consolidation,
reorganization, recapitalization, stock dividend, stock split-up or other
substitution of securities of the Company, the Committee shall make appropriate
adjustments to the maximum number and kind of shares of stock as to which
Options may be granted under the Plan and the number and kind of shares of stock
with respect to which Options have been granted under the Plan, the Option Price
for such shares and any other economic terms of the Option. The Committee's
adjustment shall be final and binding for all purposes of the Plan and each
Stock Option Agreement entered into under the Plan. No adjustment

                                      -7-
<PAGE>

provided for in this Section 7 shall require the Company to issue a fractional
share, and with respect to each Stock Option Agreement the total adjustment as
to the number of shares for which Options have been granted shall be effected by
rounding down to the nearest whole number of shares.

                  (b) Upon the effective date of any Total Private Sale, the
Plan and any unexercised Options granted under the Plan shall terminate unless
provision shall be made in writing in connection with such Total Private Sale
for the continuance of the Plan and such unexercised Options or for the
assumption of such unexercised Options by a successor to the Company or for the
substitution for such unexercised Options of new options covering shares of such
a successor with appropriate adjustments as to number and kind of shares and
prices of shares subject to such new options; provided, however, that in
connection with a Total Private Sale, the Committee may, in its discretion,
authorize the redemption of unexercised Options for a redemption price set forth
in the Stock Option Agreement. In the event that provision is made in writing as
aforesaid in connection with a Total Private Sale, the Plan and the unexercised
Options theretofore granted or the new options substituted therefor shall
continue in the manner and under the terms provided in the Plan and the Stock
Option Agreements and in such writing.

            8. AMENDMENT OR TERMINATION OF PLAN. The Board shall have the right
to amend, suspend or terminate the Plan at any time. The rights of an Optionee
under any Option granted prior to an amendment, suspension or termination of the
Plan shall not be adversely affected by any such action of the Board except upon
the consent of the Optionee; provided that an amendment to Section 4 of the Plan
to increase the number of shares of Class C Common Stock with respect to which
Options may be granted by the Committee shall not be deemed to adversely affect
any Optionee.

            9. INDEMNIFICATION OF THE COMMITTEE. The members of the Committee
shall be indemnified by the Company against all losses, claims, damages and
liabilities, joint or several (including all legal and other expenses reasonably
incurred in connection

                                      -8-
<PAGE>

with the preparation for, or defense of, any claim, action or proceeding,
whether or not resulting in any liability), for any acts or omissions which are
within the scope of such member's duties as a member of the Committee to the
fullest extent permitted by law.

            10. COMPLIANCE WITH LAW AND OTHER CONDITIONS. All Options and Stock
Option Agreements shall be governed by, and construed and enforced in accordance
with, the laws of the State of New York without giving effect to the principles
of conflicts of laws thereof, except that matters covered under the General
Corporation Law of the State of Delaware shall be governed thereby, to the
extent in either case not superseded by the laws of the United States.
Notwithstanding anything herein or in any agreements pursuant to which Options
are granted to the contrary, the Company shall not be required to issue shares
pursuant to the exercise of any Option granted under the Plan unless the
Company's counsel has advised the Company that such exercise and issuance comply
with all applicable laws including, without limitation, all applicable federal
and state securities laws.

            11. MISCELLANEOUS. Nothing in the Plan or in any Stock Option
Agreement shall (a) confer on any employee any right to continue in the employ
of the Company or any successor; or (b) affect the right of the Company or any
successor to terminate the employment of an employee at any time; or (c) be
deemed a waiver or modification of any provision contained in any agreement
between the employee and the Company or any successor.

            12. EFFECTIVE DATE AND DURATION OF PLAN. The effective date of the
Plan shall be the date of its adoption by the Board, subject only to the
approval of the stockholders of the Company entitled to vote thereon. No Options
may be granted under the Plan after the date twenty years from the date the Plan
is adopted by the Board.

                                      -9-
<PAGE>

                         Form of Stock Option Agreement

            STOCK OPTION AGREEMENT (the "Agreement"), dated as of _________,
between Community Health Systems Holdings Corp., a Delaware corporation
(together with its successors, the "Company"), and ___________ (the
"Optionee").

            1. GRANT OF OPTION.

                  1.1 GRANT. The Company hereby grants to the Optionee the right
and option (the "Option") to purchase all or any part of an aggregate of ____
whole shares of Class C Nonvoting Common Stock, par value $.01 per share, of the
Company (the "Class C Common Stock") (such number being subject to adjustment as
provided in Section 8 hereof) on the terms and conditions set forth in this
Agreement and in the Community Health Systems Holdings Corp. Employee Stock
Option Plan (the "Plan"), a copy of which is being delivered to the Optionee
concurrently herewith and is made a part hereof as if fully set forth herein.

                  1.2 NON-QUALIFIED OPTION. The Option is not intended to
qualify as an Incentive Stock Option within the meaning of Section 422 of the
Code.

                  1.3 DEFINED TERMS. Except as otherwise defined herein,
capitalized terms used in this Agreement shall have the same definitions as set
forth in the Plan.

            2. PURCHASE PRICE. The price at which the Optionee shall be entitled
to purchase shares of Class C Common Stock upon the exercise of this Option
shall be $587.50 per share (such price being subject to adjustment as provided
in Section 8 hereof) (the "Option Price").

            3. DURATION OF OPTION. The Option shall be exercisable to the extent
and in the manner provided herein for a term of 10 years from the date hereof;
provided, however, that the Option may be earlier terminated as provided in
Section 4, Section 6, Section 7 or Section 9 hereof.

            4. EXERCISABILITY OF OPTION.

                  4.1 AMOUNT OF EXERCISE. Subject to the provisions of this
Agreement and the Plan, the Option shall be exercisable in accordance with the
following schedule:

                  (a) on or after the first anniversary of the date hereof but
            before the second anniversary of the date hereof, the Option may be
            exercised to acquire up to one-fifth of the

                                      -10-
<PAGE>

            aggregate number of shares of Class C Common Stock which may be
            purchased pursuant to the Option as set forth in Section 1.1 hereof,
            less any shares previously acquired pursuant to the Option;

                  (b) on or after the second anniversary of the date hereof but
            before the third anniversary of the date hereof, the Option may be
            exercised to acquire up to 40% of the aggregate number of shares of
            Class C Common Stock which may be purchased pursuant to the Option
            as set forth in Section 1.1 hereof, less any shares previously
            acquired pursuant to the Option;

                  (c) on or after the third anniversary of the date hereof but
            before the fourth anniversary of the date hereof, the Option may be
            exercised to acquire up to 60% of the aggregate number of shares of
            Class C Common Stock which may be purchased pursuant to the Option
            as set forth in Section 1.1 hereof, less any shares previously
            acquired pursuant to the Option;

                  (d) on or after the fourth anniversary of the date hereof but
            before the fifth anniversary of the date hereof, the Option may be
            exercised to acquire up to 80% of the aggregate number of shares of
            Class C Common Stock which may be purchased pursuant to the Option
            as set forth in Section 1.1 hereof, less any shares previously
            acquired pursuant to the Option;

                  (e) on or after the fifth anniversary of the date hereof but
            before the expiration of the term of the Option, the Option may be
            exercised to acquire up to 100% of the aggregate number of shares of
            Class C Common Stock which may be purchased pursuant to the Option
            as set forth in Section 1.1 hereof, less any shares previously
            acquired pursuant to the Option.

                  4.2 TIMING OF EXERCISE. Prior to the completion of an Initial
Public Offering, unless the Committee otherwise determines, the Optionee may
exercise the Option (to the extent the Option is exercisable pursuant to Section
4.1 hereof at such time) only during the 60-day period following the date upon
which the Company delivers to the Optionee a certificate of the chief financial
officer of the Company stating that a copy of the Company's consolidated
financial statements for the preceding

                                      -11-
<PAGE>

fiscal year is available to the Optionee for his or her review at the principal
office of the Company or such other locations as the Company shall specify (the
"Annual Certificate"). The Company shall use its best efforts to deliver the
Annual Certificate within 30 days after the consolidated financial statements
referred to therein are completed. Upon the completion of an Initial Public
Offering, the Company shall no longer be required to deliver the Annual
Certificate and the Option may be exercised (to the extent the Option is
exercisable pursuant to Section 4.1 hereof at such time) at any time.

                  4.3 SALES OR OTHER EVENTS. The Company shall give the Optionee
10 days' notice (or, if not practicable, such shorter notice as may be
practicable) prior to the anticipated date of the consummation of a Total Sale
(as hereinafter defined) or the anticipated date of the consummation of a
Partial Sale (as hereinafter defined) (the "Sale Notice"). Upon receipt of the
Sale Notice, and for a period of five days thereafter (or such shorter period as
the Committee shall determine and so notify the Optionee), the Optionee shall be
permitted to exercise the Option to the extent provided in this Section 4.3,
whether or not the Option was otherwise so exercisable on the date the Sale
Notice was given; provided, that, in the event of a Total Sale or a Partial Sale
in which the Optionee would be required to participate pursuant to Section 3.4
of the Stockholder's Agreement were the Optionee then a party to such agreement,
the Company may require the Optionee to exercise the Option to the extent
necessary to enable the Optionee to participate therein or to forfeit the Option
(or portion thereof, as applicable). In the case of a Total Sale, the Option may
be exercised in whole or in part for up to the full amount of the shares of
Class C Common Stock covered thereby (less the number of shares previously
acquired by the Optionee upon exercise of the Option, if any). In the case of a
Partial Sale, the Option may be exercised in whole or in part, but not for more
than the excess, if any, of (a) the number of shares with respect to which the
Optionee would be entitled to participate in the Partial Sale pursuant to
Section 3.2 or 3.3, as applicable, of the Stockholder's Agreement, and will so
participate, over (b) the number of shares previously issued to the Optionee
upon exercise of the Option and not disposed of in a prior Partial Sale. In the
event the Total Sale or Partial Sale is not consummated, the Option will be
deemed not to have been exercised and shall be exercisable thereafter to the
extent it would have been exercisable if no such notice had been given. In lieu
of permitting or requiring the Optionee to exercise the Option in the event of a
Total Sale, the Committee, in its sole discretion, may instead cause the Company
to redeem the unexercised portion of the Option pursuant to Section 9 hereof. In
lieu of permitting the Optionee to exercise the Option in connection with a
Public Offering of all or a portion of the shares of Class A Common Stock owned
by the FL & Co. Companies (an "FL Public Offering"), the Company, at its option,
may instead cause the Option and the underlying shares to be registered under
applicable securities laws or make other arrangements consistent with such laws,
so as to permit the Optionee to sell for a period of time after the FL Public

                                      -12-
<PAGE>

Offering the same number of shares that he or she would have been able to sell
in the FL Public Offering but for this sentence.

                  For purposes hereof, (a) the term "Total Sale" shall mean any
of the following events: (i) the merger or consolidation of the Company with or
into another corporation (other than a merger or consolidation in which the
Company is the surviving corporation and which does not result in any capital
reorganization or reclassification or other change of the then outstanding
shares of Class A Common Stock), or (ii) the liquidation of the Company, or
(iii) the sale to a Third Party of all or substantially all of the assets of the
Company pursuant to a plan of liquidation or otherwise, or (iv) the sale to a
Third Party of Class A Common Stock (other than through a Public Offering); in
each case, provided that, as a result thereof, the FL & Co. Companies, the
direct and indirect partners of any of the FL & Co. Companies and any Affiliates
of any of the foregoing cease to own, directly or indirectly, any shares of the
voting stock of the Company, and (b) the term "Partial Sale" shall mean any sale
by the FL & Co. Companies of all or a portion of their shares of Class A Common
Stock to a Third Party, including through any Public Offering, which sale is not
a Total Sale.

                  4.4 TERMINATION OF OPTION. Subject to the provisions of
Section 9 hereof, the Option shall terminate simultaneously with the
consummation of a Total Sale to the extent that the Option has not theretofore
been exercised.

            5. MANNER OF EXERCISE AND PAYMENT.

                  5.1 NOTICE OF EXERCISE. Subject to the terms and conditions of
this Agreement and the Plan, the Option may be exercised by delivery of written
notice to the Company. Such notice shall state that the Optionee is electing to
exercise the Option, shall set forth the number of shares of Class C Common
Stock in respect of which the Option is being exercised and shall be signed by
the Optionee or, where applicable, by the Optionee's Legal Representative. The
Company may require proof satisfactory to it as to the right of the Legal
Representative to exercise the Option.

                  5.2 DELIVERIES. The notice of exercise described in Section
5.1 hereof shall be accompanied by (a) payment of the full purchase price for
the shares in respect of which the Option is being exercised, together with any
withholding taxes that may be due as a result of the exercise of the Option,
such payment to be made by delivery to the Company of a certified or bank check
payable to the order of the Company or cash by wire transfer or other
immediately available funds to an account designated by the Company, and (b) a
fully executed Stockholder's Agreement (a copy of which, in the form to be
executed by the Optionee (which may differ from the form attached to the Plan),
will be supplied to the Optionee upon request) and the undated stock power
referred to in Section 6.13(a)(ii) of the Stockholder's Agreement. Not less than
[____] shares of Class C Common Stock may be purchased at any one time upon

                                      -13-
<PAGE>

any exercise of the Option, unless the number of shares of Class C Common Stock
so purchased constitutes the total number of shares of Class C Common Stock then
purchasable under the Option.

                  5.3 ISSUANCE OF SHARES. Upon receipt of notice of exercise,
full payment for the shares of Class C Common Stock in respect of which the
Option is being exercised and a fully executed Stockholder's Agreement and stock
power, and subject to Section 10 of the Plan, the Company shall take such action
as may be necessary under applicable law to effect the issuance to the Optionee
of the number of shares of Class C Common Stock as to which such exercise was
effected.

                  5.4 STOCKHOLDER RIGHTS. The Optionee shall not be deemed to be
the holder of, or to have any of the rights of a holder with respect to, any
shares of Class C Common Stock subject to the Option until: (a) the Option shall
have been exercised in accordance with the terms of this Agreement and the
Optionee shall have paid the full purchase price for the number of shares in
respect of which the Option was exercised and any withholding taxes due, (b) the
Optionee shall have delivered the fully executed Stockholder's Agreement and
stock power to the Company, (c) the Company shall have issued the shares to the
Optionee, and (d) the Optionee's name shall have been entered as a stockholder
of record on the books of the Company. Upon the occurrence of all of the
foregoing events, the Optionee shall have full ownership rights with respect to
such shares, subject to the provisions of the Stockholder's Agreement.

                  5.5 PARTIAL EXERCISE. In the event the initial exercise of the
Option is an exercise in part only, then, in the event of any further exercise
of the Option, the Optionee, in lieu of executing a new Stockholder's Agreement,
may, at the Company's option, re-execute the original Stockholder's Agreement,
thereby reaffirming the representations, warranties, covenants and agreements
contained in the Stockholder's Agreement as of the date of re-execution, but
with an amended Annex A completed to set forth the number of shares of Class C
Common Stock in respect of which the Option is then being exercised and the
cumulative number of shares of Class C Common Stock which would then be subject
to the Stockholder's Agreement. If the initial exercise of the Option is by the
Optionee and any subsequent exercise of the Option is by the Legal
Representative, then the Legal Representative shall execute, at the Company's
option, either a new Stockholder's Agreement or a counterpart of the original
Stockholder's Agreement thereby agreeing to be bound by such agreement as though
such person were an original signatory thereto and affirming the truth of the
representations and warranties contained therein with respect to such person as
of the date of such person's execution of such counterpart.

                                      -14-
<PAGE>

            6. CERTAIN RESTRICTIONS.

                  6.1 NO SALE OR TRANSFER. The Optionee shall not sell,
transfer, assign, exchange, pledge, encumber or otherwise dispose of the Option
or any portion thereof, except in accordance with the provisions of this
Agreement.

                  6.2 EMPLOYMENT TERMINATION. (a) Except as may be agreed
between the Committee and the Optionee, if the Optionee shall no longer be
employed by the Company for any reason whatsoever (including by reason of death,
permanent disability or adjudicated incompetency) ("Terminated" or a
"Termination"), irrespective of whether the Optionee receives, in connection
with the Termination, any severance or other payment from the Company under any
employment agreement or otherwise (such Optionee being referred to herein as a
"Terminated Optionee"), (i) the Option, to the extent it is not exercisable
pursuant to Section 4.1 hereof at the date of such Termination, shall terminate
on and shall be of no further force and effect from and after the date of such
Termination, and (ii) the Company shall have the right, at its option,
exercisable by delivery of written notice to the Optionee within 90 days
following the date of Termination (the date of delivery of such written notice
being referred to herein as the "Election Date"), to redeem the Option to the
extent the Option is exercisable pursuant to Section 4.1 hereof immediately
prior to the date of the Optionee's Termination (the "Exercisable Portion of the
Option") or any portion thereof as determined by the Company (such portion to be
redeemed being referred to herein as the "Called Option") for the consideration
specified below.

                  (b) The redemption price of the Called Option (the "Redemption
Price") shall be equal to (i) the excess, if any, of (A) the amount which would
be payable on the Valuation Date (as defined below) in respect of one share of
Class C Common Stock in the event of a dissolution, liquidation or winding-up of
the affairs of the Company if the amount of assets available for distribution in
the event of such dissolution, liquidation or winding-up with respect to all
shares of capital stock of the Company outstanding as of the Valuation Date were
equal to the Book Value of the Company (as defined below), over (B) the Option
Price, multiplied by (ii) the number of shares of Class C Common Stock issuable
upon exercise of the Called Option. In the event there has been a stock split,
stock dividend or reverse stock split or similar transaction which changes the
number of outstanding shares of capital stock of the Company (each, a "Stock
Dividend") after the Valuation Date and prior to the Election Date, the number
of shares outstanding for purposes of determining the Redemption Price shall be
the number of shares that would have been outstanding immediately after the
Stock Dividend on the Valuation Date had the Stock Dividend occurred on the
Valuation Date.

                  The term "Book Value of the Company" shall mean the sum of (i)
the total assets minus the total liabilities of the Company on a consolidated
basis, plus

                                      -15-
<PAGE>

(ii) the amount of any reduction in stockholders' equity resulting from the
application of EITF Issue Summary No. 88-16, Basis in Leveraged Buyouts, all as
of the last day of the fiscal year immediately preceding the fiscal year in
which the Termination occurred (the "Valuation Date"). For purposes of
calculating the Book Value of the Company and the Redemption Price, all options
and other rights to acquire equity interests in the Company outstanding
immediately prior to the Delivery Date (as defined below) or exercised between
the Valuation Date and the Delivery Date shall be deemed to have been exercised
on the Valuation Date and the number of outstanding shares on the Valuation Date
shall be increased by the number of shares subject to each such option or other
right and the assets of the Company shall be increased by the aggregate exercise
price payable in respect of the exercise of each such option or other right (in
the case of any such option or other right, unless the effect thereof would be
to increase the per share Redemption Price).

                  If the Company exercises its right to redeem all or any
portion of the Exercisable Portion of the Option, then within 15 days following
the later of the Election Date or the date the financial statements referred to
below are available (such later date being referred to herein as the "Delivery
Date"), the Company shall deliver to the Terminated Optionee a certificate of
the chief financial officer of the Company setting forth the Redemption Price
and the calculation thereof and stating that a copy of the Company's
consolidated financial statements as of the Valuation Date is available to the
Terminated Optionee for his or her review at the principal office of the Company
(the "Redemption Price Certificate"), and shall make available to the Terminated
Optionee, for review at the principal office of the Company, a copy of such
financial statements.

                  The Book Value of the Company as of the Valuation Date as
reflected in the consolidated financial statements of the Company as of the
Valuation Date and the Redemption Price and the calculation thereof as certified
by the chief financial officer of the Company in the Redemption Price
Certificate shall be final and binding on the Company and the Terminated
Optionee for purposes of this Agreement. The Optionee shall keep the Redemption
Price Certificate, the financial statements and any other documentation provided
in connection therewith confidential, shall not use any such material or any
information contained therein for any purpose other than to verify the amount
due the Optionee in respect of the redemption of the Called Option, and shall
not disclose any such material or any information contained therein to anyone
other than to the Optionee's legal or financial advisers who have agreed in
writing to the equivalent confidentiality, non-use and non-disclosure provisions
contained in this paragraph.

                  (c) Subject to Section 6.2(d) hereof, the closing of the
redemption of the Called Option (the "Redemption Closing") shall take place at
the

                                      -16-
<PAGE>

principal office of the Company or such other place as may be specified by the
Company on the later of (i) 10 days after the Delivery Date and (ii) (if
applicable) 10 days after the appointment of the Optionee's Legal
Representative. At the Redemption Closing, the Company shall deliver to the
Terminated Optionee a check payable to the order of the Terminated Optionee in
the amount of the Redemption Price in full payment of the amount due the
Optionee in respect of the redemption of the Called Option. Upon payment by the
Company of the Redemption Price, if any, or, if no Redemption Price is owing,
upon delivery of the Redemption Price Certificate to the Optionee, the Called
Option shall automatically terminate and shall be of no further force or effect.
Notwithstanding anything herein to the contrary, from and after the Election
Date, the Optionee shall not have any rights with respect to the Called Option
(including any rights with respect to a Total Sale or a Partial Sale) except to
receive the Redemption Price therefor.

                  (d) Notwithstanding the provisions of Section 6.2(c) hereof,
if the Company exercises its option to redeem the Called Option but is
prohibited from effecting such redemption by any contractual obligation of the
Company or any of its Affiliates or by applicable law, the Redemption Closing
shall take place on the first practicable date on which the Company is permitted
to purchase the Called Option.

                  (e) If the Company elects not to exercise its right to redeem
the Exercisable Portion of the Option or any portion thereof, it shall so notify
the Terminated Optionee in writing within 90 days following the date of
Termination (the date of delivery of such written notice being referred to
herein as the "Notification Date"), and the Terminated Optionee shall have the
right, at his or her option, to exercise the portion of the Exercisable Portion
of the Option not being redeemed one time at any time within 60 days after the
Notification Date, but in no event after the expiration of the term of the
Option, and, until exercised, the portion of the Exercisable Portion of the
Option not being redeemed shall continue to be subject to the terms of this
Agreement, including Section 4.3 hereof. If an Initial Public Offering has not
been completed prior to the Notification Date and the Notification Date does not
fall within the 60-day exercise period set forth in Section 4.2 hereof, then,
for the 60-day exercise period provided for in this subsection (e), the Company
shall make available to the Terminated Optionee for his or her review at the
principal office of the Company, in addition to the most recent annual
consolidated financial statements of the Company then available, a copy of any
quarterly consolidated financial statements of the Company which have been
prepared by the Company and delivered to the lenders of the Company's subsidiary
after the date of such consolidated financial statements but on or prior to the
Notification Date. If the Terminated Optionee does not exercise the portion of
the Exercisable Portion of the Option not being redeemed within the 60-day
exercise period provided for in this subsection (e), such portion shall
terminate and shall be of no further force and effect from and after the final
date on which the Terminated Optionee

                                      -17-
<PAGE>

could have so exercised the portion of the Exercisable Portion of the Option not
being redeemed.

            7. PROHIBITED ACTIVITIES.

                  7.1 PROHIBITION. The Optionee agrees that (a) the Optionee
will not at any time during his or her employment (other than in the course of
his or her employment) with the Company or any Affiliate thereof, or after a
Termination, directly or indirectly disclose or furnish to any other person or
use for the Optionee's own or any other person's account any confidential or
proprietary knowledge or information or any other information which is not a
matter of public knowledge obtained during the course of his or her employment
with, or other performance of services for, the Company or any Affiliate thereof
or any predecessor of any of the foregoing, no matter from where or in what
manner the Optionee may have acquired such knowledge or information, and the
Optionee shall retain all such knowledge and information in trust for the
benefit of the Company, its Affiliates and the successors and assigns of any of
them, (b) the Optionee will not at any time during his or her employment with
the Company or any Affiliate thereof, or for 18 months following a Termination,
directly or indirectly solicit for employment, including without limitation
recommending to any subsequent employer the solicitation for employment of, any
employee of the Company, (c) the Optionee will not at any time during his or her
employment with the Company or any Affiliate thereof, or after a Termination,
publish any statement or make any statement (under circumstances reasonably
likely to become public or that the Optionee might reasonably expect to become
public) critical of the Company or any Affiliate of the Company, or in any way
adversely affecting or otherwise maligning the business or reputation of any of
the foregoing entities, and (d) the Optionee will not breach the provisions of
Section 6.1 hereof (any activity prohibited by clause (a), (b), (c) or (d) of
this Section 7.1 being herein referred to as a "Prohibited Activity").

                  7.2 RIGHT TO TERMINATE OPTION. The Optionee understands and
agrees that the Company is granting to the Optionee an option to purchase shares
of Class C Common Stock hereunder to reward the Optionee for the Optionee's
future efforts and loyalty to the Company and its Affiliates by giving the
Optionee the opportunity to participate in the potential future appreciation of
the Company. Accordingly, if, at any time during which any portion of the Option
(including the Exercisable Portion of the Option and the Called Option, as
applicable) is outstanding, (a) the Optionee engages in any Prohibited Activity,
or (b) the Optionee engages in any Competitive Activity (as hereinafter
defined), or (c) the Optionee is convicted of a crime against the Company or any
of its Affiliates, then, in addition to any other rights and remedies available
to the Company, the Company shall be entitled, at its option, to terminate the
Option (including the Exercisable Portion of the Option and the Called Option,
as applicable), or any unexercised portion thereof, which shall then be of no

                                      -18-
<PAGE>

further force and effect, and any amounts which may at the time be owing to the
Optionee pursuant to Section 6.2 hereof shall no longer be owing.

            The term "Competitor" shall mean any Person that is engaged in
owning, operating or acquiring directly or indirectly (through a corporation,
trust, partnership or other Person) one or more short-term, general acute care
hospitals located within a 50-mile radius of any hospital which, at the time the
Employee is Terminated, is owned or operated by the Company or any of its
subsidiaries or which the Company or any of its subsidiaries intend to own,
operate or acquire (which intention was disclosed to the Employee prior to or in
connection with his Termination) (a "CHS Hospital").

            The term "Competitive Activity" shall mean engaging in any of the
following activities: (i) serving as a director of any Competitor; (ii) directly
or indirectly (X) controlling any Competitor or (Y) owning any equity or debt
interests in any Competitor (other than equity or debt interests which are
publicly traded and do not exceed 2% of the particular class of interests then
outstanding) (it being understood that, if any such interests in any Competitor
are owned by an investment vehicle or other entity in which the Optionee owns an
equity interest, a portion of the interests in such Competitor owned by such
entity shall be attributed to the Optionee, such portion determined by applying
the percentage of the equity interest in such entity owned by the Optionee to
the interests in such Competitor owned by such entity); (iii) directly or
indirectly soliciting, diverting, taking away, appropriating or otherwise
interfering with any of the customers or suppliers of the Company or any
Affiliate controlled by the Company; or (iv) employment by (including serving as
an officer of), or providing consulting services to, any Competitor; provided,
however, that if the Competitor has more than one discrete and readily
distinguishable part of its business, employment by or providing consulting
services to any Competitor shall be Competitive Activity only if (1) his or her
employment duties are at or involving the part of the Competitor's business that
competes with any of the businesses conducted by the Company or any of its
subsidiaries (the "Competing Operations"), including serving in a capacity where
any person at the Competing Operations reports to the Optionee, or (2) the
consulting services are provided to or involve the Competing Operations. For
purposes of this definition, the term "control" means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of any Competitor, whether through the ownership of equity or debt
interests, by contract or otherwise. Notwithstanding the foregoing, the Optionee
shall not be deemed to be engaged in a Competitive Activity so long as his or
her employment duties are not at or involving any general acute care hospital
located within a 50-mile radius of any CHS Hospital (a "Competing Hospital"),
including serving in a capacity where any person at the Competing Hospital
reports to the Optionee. For purposes hereof, a person shall be deemed to report
to the Optionee whether he or she reports directly to the Optionee or indirectly
through one or more other persons.

                                      -19-
<PAGE>

            8. ADJUSTMENTS. In the event that shares of Class C Common Stock
(whether or not issued) are changed into or exchanged for a different number or
kind of shares of stock or other securities of the Company, whether through
merger, consolidation, reorganization, recapitalization, stock dividend, stock
split-up or other substitution of securities of the Company, the Committee shall
make appropriate adjustments to the number and kind of shares of stock subject
to the Option, the Option Price and the Redemption Price payable pursuant to
Section 6.2 hereof. The Committee's adjustment shall be final and binding for
all purposes of the Plan and this Agreement. No adjustment provided for in this
Section 8 shall require the Company to issue a fractional share, and the total
adjustment with respect to this Agreement shall be limited accordingly.

            9. TOTAL SALES.

                  9.1 CONTINUATION OF PLAN. Upon the effective date of any Total
Sale, any unexercised portion of the Option shall terminate unless provision
shall be made in writing in connection with such Total Sale for the continuance
of the Plan and such unexercised portion of the Option or for the assumption of
such unexercised portion of the Option by a successor to the Company or for the
substitution for such unexercised portion of the Option of new options covering
shares of such successor with appropriate adjustments as to number and kind of
shares and prices of shares subject to such new options, or unless the Committee
shall authorize the redemption of the unexercised portion of the Option pursuant
to Section 9.2 hereof. In the event that provision in writing is made as
aforesaid in connection with a Total Sale, the unexercised portion of the Option
or the new options substituted therefor shall continue in the manner and under
the terms provided in the Plan and this Agreement and in such writing.

                  9.2 REDEMPTION IN CONNECTION WITH A TOTAL SALE. In connection
with a Total Sale, the Committee may, in its sole discretion, authorize the
redemption of the unexercised portion of the Option for a consideration per
share of Class C Common Stock issuable upon exercise of the unexercised portion
of the Option equal to the excess of (i) the consideration payable in respect of
a share of Class C Common Stock in connection with such Total Sale (determined
by calculating the fraction of a share of Class A Common Stock for which a share
of Class C Common Stock would be exchanged in accordance with the Class C
Exchange Rate (as defined in Section 5(d) of the Certificate of Incorporation)
and multiplying that number by the proceeds payable in respect of a share of
Class A Common Stock in the Total Sale), adjusted as if all outstanding options
and other rights to acquire equity interests in the Company had been exercised
prior to the consummation of such Total Sale and further adjusted to take into
account all other equity interests in the Company (provided, however, that no
adjustment shall be made with respect to any option or other right to acquire
equity interests in the

                                      -20-
<PAGE>

Company if the exercise price for such option or other right is greater than the
consideration that would be payable per share of Class C Common Stock in
connection with such Total Sale if the adjustment were not made), over (ii) the
Option Price. Any redemption pursuant to this Section 9.2 shall occur
simultaneously with the occurrence of the Total Sale.

                  9.3 ALLOCABLE SHARE OF EXPENSES. In the event of a redemption
pursuant to Section 9.2 hereof, the Optionee shall be responsible for and shall
be obligated to pay a proportionate amount (determined as if the Optionee were a
holder of the number of shares of Class C Common Stock which would have been
issuable upon exercise of the portion of the Option redeemed pursuant to Section
9.2 hereof) of the expenses, liabilities and obligations incurred or to be
incurred by the stockholders of the Company in connection with such Total Sale
(including, without limitation, the fees and expenses of investment bankers,
legal counsel and other outside advisors and experts retained by or on behalf of
the stockholders of the Company in connection with such Total Sale, amounts
payable in respect of indemnification claims, amounts paid into escrow and
amounts payable in respect of post-closing adjustments to the purchase price)
("Expenses of Sale").

                  9.4 POWER OF ATTORNEY. (a) The Optionee hereby irrevocably
appoints the FL & Co. Companies, and each of them (individually and
collectively, the "Representative"), the Optionee's true and lawful agent and
attorney-in-fact, with full powers of substitution, to act in the Optionee's
name, place and stead, to do or refrain from doing all such acts and things, and
to execute and deliver all such documents, in connection with this Agreement or
the Option as the Representative shall deem necessary or appropriate in
connection with any Total Sale, including, without in any way limiting the
generality of the foregoing, to receive on behalf of the Optionee any payments
made in respect of the unexercised portion of the Option (including payments
made in connection with any redemption) in connection with any Total Sale, to
hold back from any such payments any amount which the Representative deems
necessary to reserve against the Optionee's share of any Expenses of Sale, and
to engage in any acts in which the Representative is authorized by and on behalf
of the holders of any of the Company's capital stock to engage in connection
with the Total Sale. The Optionee hereby ratifies and confirms all that the
Representative shall do or cause to be done by virtue of its appointment as the
Optionee's Representative.

                  (b) In acting for the Optionee pursuant to the appointment set
forth in paragraph (a) of this Section 9.4, the Representative shall not be
responsible to the Optionee for any loss or damage the Optionee may suffer by
reason of the performance by the Representative of its duties under this
Agreement, except for loss or damage arising from willful violation of law or
gross negligence in the performance of its duties hereunder. The appointment of
the Representative shall be deemed coupled

                                      -21-
<PAGE>

with an interest and shall be irrevocable, and any person dealing with the
Representative may conclusively and absolutely rely, without inquiry, upon any
act of the Representative as the act of the Optionee in all matters referred to
in this Section 9.4.

                  (c) Notwithstanding the foregoing, this power of attorney does
not empower the Representative to exercise the Option on behalf of the Optionee.

            10. WITHHOLDING. The Company shall have the right to deduct from any
amount payable under this Agreement any taxes or other amounts required by
applicable law to be withheld.

            11. NO RIGHT TO CONTINUED EMPLOYMENT. This Agreement and the Option
shall not confer upon the Optionee any right with respect to continuance of
employment by the Company or any Affiliate thereof, nor shall it interfere in
any way with the right of the Company or any Affiliate thereof to terminate the
Optionee's employment at any time.

            12. ENTIRE AGREEMENT. This Agreement and the Plan and, upon
execution thereof, the Stockholder's Agreement, constitute the entire agreement,
and supersede all prior agreements and understandings, oral and written, between
the parties hereto with respect to the Option granted hereby.

            13. MODIFICATION OF AGREEMENT. This Agreement may be modified,
amended or supplemented by written agreement of the parties hereto; provided,
that the Company may modify, amend or supplement this Agreement in a writing
signed by the Company without any further action by the Optionee if such
modification, amendment or supplement does not adversely affect the Optionee's
rights hereunder.

            14. INVALIDITY OF PROVISIONS. The invalidity or unenforceability of
any provision of this Agreement in any jurisdiction shall not affect the
validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of this Agreement, including that
provision, in any other jurisdiction. If any provision of this Agreement is held
unlawful or unenforceable in any respect, such provision shall be revised or
applied in a manner that renders it lawful and enforceable to the fullest extent
possible.

            15. ACKNOWLEDGMENT. The Optionee hereby acknowledges receipt of a
copy of the Plan and agrees to be bound by all the terms and provisions thereof
as the same may be amended from time to time. The Optionee hereby acknowledges
that the Optionee has reviewed the Plan and this Agreement and understands his
or her rights and obligations thereunder and hereunder. The Optionee also
acknowledges that the Optionee has been provided with such information
concerning the Company, the Plan and this Agreement as the Optionee and his or
her advisors have requested.

                                      -22-
<PAGE>

            16. BINDING EFFECT. This Agreement shall inure to the benefit of and
be binding upon the parties hereto and their respective heirs, legal
representatives, successors and assigns. In addition, each of the FL & Co.
Companies shall be a third party beneficiary of this Agreement and shall be
entitled directly to enforce this Agreement.

            17. HEADINGS. The headings and captions contained herein are for
convenience only and shall not control or affect the meaning or construction of
any provision hereof.

            18. RESOLUTION OF DISPUTES. Any dispute or disagreement which may
arise under, or as a result of, or which may in any way relate to, the
interpretation, construction or application of this Agreement shall be
determined by the Committee, in good faith, whose determination shall be final,
binding and conclusive for all purposes.

            19. GOVERNING LAW. This Agreement and the rights and obligations of
the parties hereto shall be governed by, and construed and enforced in
accordance with, the laws of the State of New York without giving effect to the
principles of conflicts of laws thereof.

            20. SPECIFIC PERFORMANCE. The parties hereto acknowledge that there
will be no adequate remedy at law for a violation of any of the provisions of
this Agreement and that, in addition to any other remedies which may be
available, all of the provisions of this Agreement shall be specifically
enforceable in accordance with their respective terms.

            21. NOTICE. All notices and other communications hereunder shall be
in writing and, unless otherwise provided herein, shall be deemed to have been
given when received by the party to whom such notice is to be given at its
address set forth below, or such other address for the party as shall be
specified by notice given pursuant hereto:

                  (a)   If to the Company, to it:

                          c/o Community Health Systems, Inc.
                          155 Franklin Road, Suite 400
                          Brentwood, TN 37027-4600
                          Attention: President

                                      -23-
<PAGE>

                        with a copy to:

                          Forstmann Little & Co. Equity Partnership-V, L.P.
                          767 Fifth Avenue, 44th Floor
                          New York, New York 10153
                          Attention: Ms. Sandra Horbach

                  (b) If to the Optionee or Legal Representative, to such person
at the address as reflected in the records of the Company.

            22. CONSENT TO JURISDICTION. Each party hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction of the courts
of the State of New York and of the United States of America, in each case
located in the County of New York, for any actions, suits or proceedings arising
out of or relating to this Agreement, the Option or the Plan and the
transactions contemplated hereby and thereby ("Litigation") (and agrees not to
commence any Litigation except in any such court), and further agrees that
service of process, summons, notice or document by U.S. registered mail to such
party's respective address set forth in Section 21 hereof shall be effective
service of process for any Litigation brought against such party in any such
court. Each party hereby irrevocably and unconditionally waives any objection to
the laying of venue of any Litigation in the courts of the State of New York or
of the United States of America, in each case located in the County of New York,
and hereby further irrevocably and unconditionally waives and agrees not to
plead or claim in any such court that any Litigation brought in any such court
has been brought in an inconvenient forum.

            IN WITNESS WHEREOF, this Agreement has been signed by or on behalf
of each of the parties hereto, all as of the date first above written.

OPTIONEE                               COMMUNITY HEALTH SYSTEMS
                                       HOLDINGS CORP.

______________________________         By: ______________________________
Name:    NAME
Address: ADDRESS

                                      -24-
<PAGE>

            The undersigned acknowledges that the undersigned has read the
foregoing Agreement between Community Health Systems Holdings Corp. and the
undersigned's spouse and the Employee Stock Option Plan, understands that the
undersigned's spouse has been granted an option to acquire shares of Class C
Common Stock of Community Health Systems Holdings Corp., which option is subject
to certain restrictions reflected in such Agreement and such Plan and agrees to
be bound by the foregoing Agreement and such Plan.

                                          ______________________________
                                                Optionee's Spouse

                                      -25-

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