Document:

exv10w2

 

Exhibit 10.2

EMPLOYMENT AGREEMENT

     This Employment Agreement is entered into as of September 10, 2004 (the
“Effective Date”) by and between SciClone Pharmaceuticals, Inc. (the “Company”)
and Richard A. Waldron (“Employee”).

     WHEREAS, the Company and Employee entered into an agreement regarding the
terms and conditions of employment in the form of an offer letter dated March
9, 2001 (the “Offer Letter”) which Employee agreed to and accepted.

     WHEREAS, the Company entered into a Change of Control Agreement with
Employee dated April 30, 2001 (the “Change of Control Agreement”) which
continues to remain in effect.

     WHEREAS, the Company now desires to provide Employee with certain
enhancements to his compensation package as well as other employment–related
benefits and hereby amends the Offer Letter as set forth herein.

     NOW, THEREFORE, in consideration of the promises and the terms and
conditions set forth in this Agreement, the parties agree as follows:

     1. Position and Duties. You will continue to be employed by the Company
as its Chief Financial Officer, reporting to the President and CEO. You agree
to continue your employment with the Company on the terms and conditions set
forth in this Agreement. Your duties will include, but not be limited to,
those duties normally performed by a CFO, as well as any other reasonable
duties that may be assigned to you from time to time, which will include your
service in the Office of President along with Dr. Alfred Rudolph during the
period until the Company selects a new CEO.

     2. Term of Employment. Your employment with the Company will continue to
be on an at-will basis, and may be terminated by you or the Company at any
time, with or without cause, subject to the provisions of paragraphs 4 and 5
below as well as the terms set forth in the Change of Control Agreement.

     3. Compensation. You will be compensated by the Company for your services
as follows:

          a. Salary: Your current annual base salary of $270,000 will be increased
effective July 14, 2004 by $40,000. All salary is less applicable withholding,
payable in accordance with the Company’s normal payroll procedures. Your
salary will be reviewed by the Company’s Board of Directors (the “Board”) from
time to time (but no more frequently than annually), and may be subject to
adjustment. Any adjustment to your salary shall be in the sole discretion of
the Board.

          b. Bonus: In addition to the Management Bonus described in the Offer
Letter, you will be eligible to receive a bonus equal to $50,000.00, less
applicable withholding,

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payable in January 2005 for work performed in the Office of the President
provided you remain with the Company through January 15, 2005.

          c. Benefits: You will continue to participate in and to receive benefits
under the Company’s group benefit plans, as well as under the Company’s
business expense reimbursement and other policies. You will continue to accrue
paid vacation in accordance with the Company’s vacation policy.

          d. Stock Option: You will be granted an option to purchase 50,000 shares
of the Company’s common stock under the Company’s stock option plan at an
exercise price equal to the fair market value of that stock on the grant date.
Provided you remain employed by the Company, this option will vest monthly over
a two year period with that vesting beginning as of the date of the Board’s
approval of this option. Your option will be governed by and subject to the
terms and conditions of the Company’s standard form of stock option agreement
(which you will be required to sign in connection with the issuance of your
option).

     4. Voluntary Termination. The section of the Offer Letter entitled
“Termination” shall be superseded by the following as well as paragraph 5. In
the event that you voluntarily resign from your employment with the Company,
you will be entitled to no compensation or benefits from the Company other than
those earned under Paragraph 3 through the date of your termination; however,
in the event that your employment terminates as a result of your death or
disability (meaning that you are unable to perform your duties for any 90 days
in any one year period, with or without reasonable accommodation, as a result
of a physical and/or mental impairment), you will also be entitled to a pro
rata portion of the bonuses under Paragraph 3b. You agree that if you
voluntarily terminate your employment with the Company for any reason, you will
provide the Company with 60 days’ written notice of your resignation. The
Company may, in its sole discretion, elect to waive all or any part of such
notice period and accept your resignation at an earlier date.

     5. Other Termination. Your employment may be terminated under the
circumstances set forth below. For purposes of this Agreement, the term
“Cause” shall have the meaning given to it in the Change of Control Agreement.
A copy of the Change of Control Agreement is attached for reference as Exhibit
A.

          a. Termination for Cause: If your employment is terminated by the Company
for Cause as such is defined in the Change of Control Agreement you shall be
entitled to no compensation or benefits from the Company other than those
earned under Paragraph 3 through the date of your termination for Cause.

          b. Termination Without Cause: If your employment is terminated by the
Company without Cause (and not as a result of your death or disability), and if
you sign a general release of known and unknown claims in a form satisfactory
to the Company,

               i. you will receive severance payments at your final base salary rate,
less applicable withholding, for the twelve (12) month period following the
date of your termination without cause. Severance payments will be made in
accordance with the Company’s normal payroll procedures. In addition, you will
also receive (i) payment of the bonus referred to

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in Paragraph 3(b) if not already paid and (ii) a pro-rated Management
Bonus (as defined in the Offer Letter) based on the previous year’s bonus.
During the period in which you are receiving severance payments and for an
additional twelve (12) month period thereafter, the Company will pay the
premiums to continue your group health insurance coverage under COBRA so long
as you timely elect COBRA coverage.

               ii. if such termination occurs prior to July 14, 2006 you will receive
full vesting of any unvested portion of your options and the post termination
exercise period with respect to this option will be for the 18 month period
following your termination of employment without cause. Your options
(including the option referenced in Paragraph 3 of this Agreement) will be
amended effective as of the date hereof to provide for such provisions.

     6. Limitation of Payments and Benefits. To the extent that any of the
payments and benefits provided for in this Agreement or otherwise payable to
you constitute “parachute payments” within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the “Code”), and, but for this
Paragraph 6, would be subject to the excise tax imposed by Section 4999 of the
Code or any similar or successor provision, the aggregate amount of such
payments and benefits will not exceed the amount which produces the greatest
after-tax benefit to the Employee. For purposes of the foregoing, the greatest
after-tax benefit will be determined within thirty (30) days of the occurrence
of such payment to the Employee, in the Employee’s sole and absolute
discretion. If no such determination is made by the Employee within thirty
(30) days of the occurrence of such payment, the Company will promptly make
such determination in a fair and equitable manner.

     7. Confidential and Proprietary Information. You continue to be subject
to the terms and conditions of the Company’s standard form of employee
confidentiality and assignment of inventions agreement.

     8. Dispute Resolution. The section of the Offer Letter entitled “Dispute
Resolution” shall be superseded and the following shall be in its place. In
the event of any dispute or claim relating to or arising out of your employment
relationship with the Company, this agreement, or the termination of your
employment with the Company for any reason (including, but not limited to, any
claims of breach of contract, wrongful termination or age, sex, race, national
origin, disability or other discrimination or harassment), all such disputes
shall be fully, finally and exclusively resolved by binding arbitration
conducted by the American Arbitration Association (“AAA”) under the AAA’s
National Rules for the Resolution of Employment Disputes then in effect, which
are available online at the AAA’s website at www.adr.org or by requesting a
copy from the Human Resources Department. You and the Company hereby waive
your respective rights to have any such disputes or claims tried before a judge
or jury.

     9. Severability. If any provision of this Agreement is deemed invalid,
illegal or unenforceable, such provision shall be modified so as to make it
valid, legal and enforceable, and the validity, legality and enforceability of
the remaining provisions of this Agreement shall not in any way be affected.

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     10. Assignment. In view of the personal nature of the services to be
performed under this Agreement by you, you cannot assign or transfer any of
your obligations under this Agreement.

     11. Employee’s Successors. All rights of the Employee hereunder shall
inure to the benefit of, and be enforceable by, the Employee’s personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.

     12. Entire Agreement. This Agreement and the agreements referred to above
constitute the entire agreement between you and the Company regarding the terms
and conditions of your employment, and they supersede all prior negotiations,
representations or agreements between you and the Company regarding your
employment, whether written or oral.

     13. Modification. This Agreement may only be modified or amended by a
supplemental written agreement signed by you and an authorized representative
of the Company.

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     Please sign and date this letter on the spaces provided below to
acknowledge your acceptance of the terms of this Agreement.

	 	 	 	 	 	 	 
	 	 	 	 	Sincerely,
	 
	 	 	 	 	 	 
	 	 	 	 	SciClone Pharmaceuticals, Inc.
	 
	 	 	 	 	 	 
	

	 	 	 	By:	 	 
	

	 	 	 	 	 	

	 	 	 	 	 	 	Chairman of the Board
	 
	 	 	 	 	 	 
	Agreed to and Accepted:	 	 	 	 
	 
	 	 	 	 	 	 
	Date:	 	 	 	 	 	  
	 	 	
	 	 	 	
Richard A. Waldron

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EXHIBIT A

SCICLONE PHARMACEUTICALS, INC.

CHANGE IN CONTROL AGREEMENT

     This
Change in Control Agreement (the “Agreement”) is effective as of
October                
   , 1999, by and between                                        (the “Employee”) and
SciClone Pharmaceuticals, Inc., a Delaware corporation (the
“Company”).

RECITALS

          a. The Employee presently serves as                                          of the
Company and performs significant strategic and management responsibilities
necessary to the continued conduct of the Company’s business and operations.

          b. The
Board of Directors of the Company (the “Board”) has determined that
it is in the best interests of the Company and its stockholders to assure that
the Company will have the continued dedication and objectivity of the Employee,
notwithstanding the possibility or occurrence of a Change in Control (as
defined below) of the Company.

          c. The Board believes that it is imperative to provide the Employee with
certain severance benefits upon the Employee’s termination of employment
following a Change in Control that will provide the Employee with enhanced
financial security and provide sufficient incentive and encouragement to the
Employee to remain with the Company following a Change in Control.

AGREEMENT

     The Employee and the Company agree as set forth below:

               i. Terms of Employment. The Company and the Employee agree that the
Employee’s employment is “at will” and that their employment relationship may
be terminated by either party at any time, with or without cause, and, if
applicable, in accordance with Section 2 below. If the Employee’s employment
with the Company terminates for any reason following a Change in Control, but
on or before the first anniversary of the Change in Control, the Employee shall
not be entitled to any payments, benefits, damages, awards or compensation
other than as provided by this Agreement. During his or her employment with
the Company, the Employee agrees to devote his or her full business time,
energy and skill to his or her duties with the Company. These duties shall
include, but not be limited to, any duties consistent with the Employee’s
position that may be assigned to the Employee from time to time by the Company
or the Board.

               ii. Severance Benefits Upon Termination following a Change in Control.
Subject to the limitations set forth in Sections 3 and 4 below, if the
Employee’s employment with the Company terminates following a Change in Control
but on or before the first anniversary of such Change in Control, then the
Employee shall be entitled to receive, in addition to the compensation and
benefits earned by the Employee through the date of his or her termination,
severance benefits as follows:

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                    (a) Involuntary Termination. If the Employee’s employment with the
Company is terminated as a result of Involuntary Termination, then the Employee
shall be entitled to receive the following severance benefits:

                         (i) The Employee shall be entitled to receive severance pay in an amount
equal to one hundred percent (100%) of his or her annual base salary as in
effect at the time of such termination. Any severance to which the Employee is
entitled pursuant to this section shall be paid in a lump sum, less applicable
withholding, within thirty (30) days following the Employee’s termination.

                         (ii) With respect to any unvested options to purchase shares of the stock
of the Company held by the Employee, the Employee shall immediately become
vested in full in such options at the time of such termination.

                         (iii) The Company shall, if permitted under the Company’s existing health
insurance plans, continue the Employee’s existing group health insurance
coverage. If not so permitted, the Company shall reimburse the Employee for
any COBRA premiums paid by the Employee for continued group health insurance
coverage. Such health insurance coverage or reimbursement of COBRA premiums
shall continue until the earlier of (1) twelve (12) months after the date of
the Employee’s Involuntary Termination or (2) the date on which the Employee
commences New Employment.

                    (b) Voluntary Resignation; Termination For Cause. If the Employee’s
employment terminates by reason of the Employee’s voluntary resignation (but
not as a result of an Involuntary Termination) or as a result of the Employee’s
termination for Cause, then the Employee shall not be entitled to receive any
severance pay or benefits under this Agreement.

                    (c) Disability; Death. If the Company terminates the Employee’s
employment as a result of the Employee’s Disability, or death, then the
Employee shall not be entitled to receive any severance pay or benefits under
this Agreement.

               iii. Release of Claims; Resignation. The Employee’s entitlement to any
severance pay or benefits under Section 2(a) is conditioned upon the Employee’s
execution and delivery to the Company of (a) a general release of known and
unknown claims in the form attached hereto as Exhibit A and (b) a resignation
from all of the Employee’s positions with the Company, including from the Board
of Directors and any committees thereof on which the Employee serves, in a form
satisfactory to the Company.

               iv. Parachute Payments. In the event that any payment or benefit received
or to be received by the Employee pursuant to this Agreement or otherwise
(collectively, the “Payments”) would result in a “parachute payment” as
described in section 280G of the Internal Revenue Code of 1986, as amended,
notwithstanding the other provisions of this Agreement, the amount of such
Payments will not exceed the amount which produces the greatest after-tax
benefit to the Employee. For purposes of the foregoing, the greatest after-tax
benefit will be determined within thirty (30) days of the occurrence of such
payment to the Employee, in the Employee’s sole and absolute discretion. If no
such

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determination is made by the Employee within thirty (30) days of the
occurrence of such payment, the Company will promptly make such determination
in a fair and equitable manner.

               v. Consulting Services. During the twenty-four (24) months following any
Involuntary Termination for which the Employee receives the severance pay and
benefits described in Section 2(a), the Employee shall be retained by the
Company as an independent contractor to provide consulting services to the
Company at its request for up to eight (8) hours per week. These services
shall include any reasonable requests for information or assistance by the
Company, including, but not limited to, the transition of the Employee’s
duties. Such services shall be provided at mutually convenient times. For the
actual provision of such services, the Company shall pay to the Employee a
consulting fee of $1,000 per day, plus reasonable out-of-pocket expenses (for
example, travel and lodging).

               vi. Definition of Terms. The following terms referred to in this
Agreement shall have the following meanings:

                    (a) “Cause” shall mean any of the following:

                         (i) the Employee’s theft, dishonesty, misconduct or falsification of any
records of the Company, its successor, or any subsidiary of the Company or its
successor (collectively, the “Company Group”);

                         (ii) the Employee’s misappropriation or improper disclosure of
confidential or proprietary information of the Company Group;

                         (iii) any intentional action by the Employee which has a material
detrimental effect on the reputation or business of the Company Group;

                         (iv) the Employee’s failure or inability to perform any reasonable
assigned duties after written notice from the Company Group of, and a
reasonable opportunity to cure, such failure or inability;

                         (v) any material breach by the Employee of any employment agreement
between the Employee and the Company Group, which breach is not cured pursuant
to the terms of such agreement; or

                         (vi) the Employee’s conviction of any criminal act which impairs the
Employee’s ability to perform his or her duties for the Company Group.

                    (b) “Change in Control” shall mean: (i) a merger or other transaction in
which the Company or substantially all of its assets is sold or merged and as a
result of such transaction, the holders of the Company’s common stock prior to
such transaction do not own or control a majority of the outstanding shares of
the successor corporation, (ii) the election of nominees constituting a
majority of the Board which nominees were not approved by a majority of the
Board prior to such election, or (iii) the acquisition by a third party of
twenty percent (20%) or more of the Company’s outstanding shares which
acquisition was without the approval of a majority of the Board in office prior
to such acquisition.

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                    (c) “Constructive Termination” shall mean any one or more of the
following:

                         (i) without the Employee’s express written consent, the assignment to the
Employee, following the Change in Control, of any title or duties, or any
limitation of the Employee’s responsibilities, that are substantially
inconsistent with the Employee’s title(s), duties, or responsibilities with the
Company Group immediately prior to the date of the Change in Control
(including, but not limited to, Employee’s failure to report to the Chief
Executive Officer and/or failure to be a member of the executive staff);

                         (ii) without the Employee’s express written consent, the relocation of the
principal place of the Employee’s employment, following the Change in Control,
to a location that is more than fifty (50) miles from the Employee’s principal
place of employment immediately prior to the date of the Change in Control, or
the imposition of travel requirements substantially more demanding of the
Employee than such travel requirements existing immediately prior to the date
of the Change in Control;

                         (iii) any failure by the Company Group, following the Change in Control,
to pay, or any material reduction by the Company Group of, (1) the Employee’s
base salary in effect immediately prior to the date of the Change in Control,
or (2) the Employee’s bonus compensation, if any, in effect immediately prior
to the date of the Change in Control (subject to applicable performance
requirements with respect to the actual amount of bonus compensation earned by
the Employee), unless base salary and/or bonus reductions comparable in amount
and duration are concurrently made for a majority of the other employees of the
Company Group who have substantially similar titles and responsibilities as the
Employee; and

                         (iv) any failure by the Company Group, following the Change in Control, to
(1) continue to provide the Employee with the opportunity to participate, on
terms no less favorable than those in effect for the benefit of any employee
group which customarily includes a person holding the employment position or a
comparable position with the Company Group then held by the Employee, in any
benefit or compensation plans and programs, including, but not limited to, the
Company Group’s life, disability, health, dental, medical, savings, profit
sharing, stock purchase and retirement plans, if any, in which the Employee was
participating immediately prior to the date of the Change in Control, or in
substantially similar plans or programs, or (2) provide the Employee with all
other fringe benefits (or substantially similar benefits), including, but not
limited to, relocation benefits, provided to any employee group which
customarily includes a person holding the employment position or a comparable
position with the Company Group then held by the Employee, which the Employee
was receiving immediately prior to the date of the Change in Control.

     However, the foregoing conditions shall not constitute a Constructive
Termination unless the Employee has given written notice of any such
condition(s) to the Chairman of the Board and allowed the Company Group at
least twenty (20) days thereafter to correct such condition(s). If such
condition(s) are not corrected within that twenty (20) day period, the Employee
may give written notice of his Constructive Termination to the Board, which
shall be an Involuntary Termination.

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                    (d) “Disability” means the inability of the Employee, in the opinion of a
qualified physician, to perform the essential functions of the Employee’s
position with the Company Group, with or without reasonable accommodation,
because of the sickness or injury of the Employee.

                    (e) “Involuntary Termination” shall mean the occurrence of either of the
following events after a Change in Control, but on or before the first
anniversary of such Change in Control:

                         (i) termination by Company Group of the Employee’s employment without
Cause; or

                         (ii) the Employee’s Constructive Termination.

     “Involuntary Termination” shall not include any termination of the
Employee’s employment that is (1) for Cause, (2) a result of the Employee’s
death or Disability, or (3) a result of the Employee’s voluntary resignation.

                    (f) “New Employment” shall mean any employment obtained by the Employee
after the termination of the Employee’s employment with the Company.

               vii. Nonsolicitation. During his or her employment with the Company, and
for a period of one (1) year following the termination of his or her employment
for any reason, the Employee shall not directly or indirectly recruit, solicit,
or induce any person who on the date hereof is, or who subsequently becomes, an
employee, sales representative or consultant of the Company, to terminate his
or her relationship with the Company.

               viii. Successors.

                    (a) Company’s Successors. Any successor to the Company or to all or
substantially all of the Company’s business and/or assets shall be bound by
this Agreement in the same manner and to the same extent as the Company. For
all purposes under this Agreement, the term “Company” shall include any
successor to the Company’s business and/or assets.

                    (b) Employee’s Successors. All rights of the Employee hereunder shall
inure to the benefit of, and be enforceable by, the Employee’s personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. The Employee shall have no right to
assign any of his obligations or duties under this Agreement to any other
person or entity.

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               ix. Notice.

                    (a) General. Notices and all other communications contemplated by this
Agreement shall be in writing and shall be deemed to have been duly given when
personally delivered or when mailed by U.S. registered or certified mail,
return receipt requested and postage prepaid. In the case of the Employee,
mailed notices shall be addressed to the Employee at the home address which he
or she most recently communicated to the Company in writing. In the case of
the Company, mailed notices shall be addressed to its corporate headquarters,
and all notices shall be directed to the attention of its Secretary.

                    (b) Notice of Termination. Any termination by the Company Group or the
Employee of their employment relationship shall be communicated by a written
notice of termination to the other party.

               x. Miscellaneous Provisions.

                         (a) No Duty to Mitigate. The Employee shall not be required to mitigate
the amount of any payment contemplated by this Agreement (whether by seeking
New Employment or in any other manner), nor shall any such payment be reduced
by any earnings that the Employee may receive from any other source.

                         (b) Waiver. No provision of this Agreement shall be modified, waived or
discharged unless the modification, waiver or discharge is agreed to in writing
and signed by the Employee and by an authorized officer of the Company (other
than the Employee). No waiver by either party of any breach of, or of
compliance with, any condition or provision of this Agreement by the other
party shall be considered a waiver of any other condition or provision or of
the same condition or provision at another time.

                         (c) Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
California.

                         (d) Severability. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision hereof, which shall remain in full force and effect.

                         (e) Arbitration. In the event of any dispute or claim relating to or
arising out of the Employee’s employment relationship with the Company, this
Agreement, or the termination of the Employee’s employment with the Company for
any reason (including, but not limited to, any claims of breach of contract,
wrongful termination, fraud or age, race, sex, national origin, disability or
other discrimination or harassment), the Employee and the Company agree that
all such disputes shall be fully, finally and exclusively resolved by binding
arbitration conducted by the American Arbitration Association in Santa Clara
County, California. Judgment upon any decision or award rendered by the
arbitrator may be entered in any court having jurisdiction over the matter.
The Employee and the Company knowingly and willingly waive their respective
rights to have any such disputes or claims tried to a judge or jury.

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                         (f) Prior Agreements. This Agreement supersedes all prior understandings
and agreements, whether written or oral, regarding the subject matter of this
Agreement.

     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in
the case of the Company by its duly authorized officer, as of the day and year
first above written.

	 	 	 	 	 
	 	 	SCICLONE PHARMACEUTICALS, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	 
	 	 	 	 
	 	 	EMPLOYEE
	 
	 	 	 	 
	 	 	

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Exhibit A

RELEASE

     In exchange for the severance pay and benefits described in the Change in
Control Agreement between SciClone Pharmaceuticals, Inc. (the “Company”) and me
of [date], I hereby release the Company, its parents and subsidiaries, and
their officers, directors, employees, attorneys, shareholders, successors,
assigns and affiliates, of and from any and all claims, liabilities, and causes
of action of every kind and nature, whether known or unknown, based upon or
arising out of any agreements, events, acts, omissions or conduct at any time
prior to and including the execution date of this Release, including, but not
limited to: all claims concerning my employment with the Company or the
termination of that employment; all claims pursuant to any federal, state or
local law, statute, or cause of action, including, but not limited to, the
federal Civil Rights Act of 1964, as amended; the federal Americans with
Disabilities Act of 1990; the federal Age Discrimination in Employment Act of
1967, as amended (“ADEA”); the California Fair Employment and Housing Act, as
amended; tort law; contract law; wrongful discharge; race, sex, age or other
discrimination or harassment; fraud; defamation; emotional distress; and breach
of the implied covenant of good faith and fair dealing.

     I am knowingly, willingly and voluntarily releasing any claims I may have
under the ADEA. I acknowledge that the consideration given for the release in
the preceding paragraph hereof is in addition to anything of value to which I
was already entitled. I further acknowledge that I have been advised by this
writing, as required by the ADEA, that: (a) this Release does not apply to any
rights or claims that may arise after I sign it; (b) I have the right to
consult with an attorney prior to signing this Release; (c) I have twenty-one
(21) days to consider this Release (although I may choose to voluntarily sign
this Release earlier); (d) I have seven (7) days after I sign this Release to
revoke it; and (e) this Release shall not be effective until the eighth day
after it is signed by me.

     In giving this release, which includes claims that may be unknown to me at
present, I acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: “A general release does not
extend to claims which the creditor does not know or suspect to exist in his
favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.” I hereby waive and
relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to my release of any unknown claims
I may have, and I affirm that it is my intention to release all known and
unknown claims that I have or may have against the parties released above.

     This Release contains the entire agreement between the Company and me
regarding the subjects above, and it cannot be modified except by a document
signed by me and an authorized representative of the Company.

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	 	 	 	 	EMPLOYEE
	Date:	 	 	 	 
	 	 	
	 	

	 
	 	 	 	 	 	 
	 	 	 	 	SCICLONE PHARMACEUTICALS, INC.
	 
	 	 	 	 	 	 
	Date:

	 	 	 	By:	 	 
	

	 	
	 	 	 	

	 
	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 
	

	 	 	 	 	 	

14<PAGE>

                                                                    EXHIBIT 10.1

SALE AND PURCHASE AGREEMENT

USPE HOLDINGS LIMITED

and

JENEBE INTERNATIONAL S.A.R.L.

and

DELPHIRICA INVESTMENTS S.A.R.L.

and

ALOSEM SOCIEDAD CIVIL

and

TESALIA SOCIEDAD CIVIL

and

CAPITAL STOCK S.C.R., S.A.

29 July 2004

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                                                          PAGE
<S>                                                                                                             <C>
1.        INTERPRETATION.....................................................................................     5
2.        OBLIGATION TO EVIDENCE AUTHORITY...................................................................     5
3.        OBJECT OF THE AGREEMENT............................................................................     6
4.        SALE AND PURCHASE..................................................................................     6
5.        TERMS FOR COMPLETION...............................................................................     6
6.        PRICE..............................................................................................     6
7.        ADJUSTMENT OF THE PRICE............................................................................     7
8.        POSITION OF PURCHASER..............................................................................     7
9.        COMPLETION.........................................................................................     8
10.       USPI'S PERMANENCE..................................................................................     9
11.       SELLER'S WARRANTIES................................................................................    10
12.       PURCHASER'S WARRANTIES.............................................................................    11
13.       OUTSTANDING SECURITY...............................................................................    11
14.       CONFIDENTIALITY....................................................................................    12
15.       PAYMENT AND NOTICES................................................................................    12
16.       FURTHER ASSURANCES.................................................................................    14
17.       GENERAL............................................................................................    14
18.       WHOLE AGREEMENT....................................................................................    15
19.       GUARANTEE BY THE GUARANTOR AND JOINT AND SEVERAL LIABILITY OF DELPHIRICA INVESTMENTS AND
          JENEBE INTERNATIONAL...............................................................................    15
20.       GOVERNING LAW AND ARBITRATION......................................................................    15

SCHEDULE 1...................................................................................................    17
The Company..................................................................................................    17
SCHEDULE 2...................................................................................................    18
The subsidiaries and Associated Companies....................................................................    18
Part 1 - The Subsidiaries ...................................................................................    18
Part 2 - Associated Companies................................................................................    30
SCHEDULE 3...................................................................................................    33
Seller's Warranties..........................................................................................    33
SCHEDULE 4...................................................................................................    38
Limits on Warranty claims....................................................................................    38
SCHEDULE 5...................................................................................................    42
Accounts.....................................................................................................    42
Part A - Completion Balance Sheet............................................................................    42
Part B - Reference Balance Sheet.............................................................................    44
Part C - Specific Policies for the preparation of the Completion Balance Sheet...............................    46
Part D - Completion Price....................................................................................    48
Part E - Balance sheet items for Completion Price Adjustment.................................................    52
SCHEDULE 6...................................................................................................    54
Purchaser Warranties.........................................................................................    54
SCHEDULE 7...................................................................................................    55
Pre-completion...............................................................................................    55
SCHEDULE 8...................................................................................................    58
Completion...................................................................................................    58
SCHEDULE 9...................................................................................................    60
Agreed form of Notarial Deed of Transfer.....................................................................    60
DATA ROOM DOCUMENTS..........................................................................................    61
INTERPRETATION...............................................................................................    62
LIST OF EMPLOYEES............................................................................................    69
</TABLE>

                                       1

<PAGE>

THIS AGREEMENT is made in Madrid on 29 July 2004

BETWEEN:

(1)       USPE HOLDINGS LIMITED, a company incorporated and existing in
          accordance with the laws of England and Wales, with its registered
          offices at 21 Worship Street, London EC2A 2DW, United Kingdom, and
          registered with number 4338651 (the Seller), represented by Mr. Jason
          B. Cagle, of legal age, of U.S. nationality, resident at 1111 Turner
          Avenue, Dallas, Texas 75208 and holder of passport number 132206958,
          acting by virtue of the authority vested in him by the Board of
          Directors of the company in its meeting of 28 July 2004, pending to be
          notarised and apostilled;

(2)       UNITED SURGICAL PARTNERS INTERNATIONAL, INC, a company incorporated
          and existing in accordance with the laws of Delaware, United States,
          with its registered offices at 15305 Dallas Parkway, Suite 1600 - LB
          28, Addison, TX 75001, with Federal Tax ID number 75-274976 (the
          GUARANTOR), represented by Mr. Jason B. Cagle, of legal age, of U.S.
          nationality, resident at 1111 Turner Avenue, Dallas, Texas 75208 and
          holder of passport number 132206958, acting under an irrevocable
          verbal mandate of the Guarantor;

(3)       JENEBE INTERNATIONAL S.A.R.L., a company of Luxembourg nationality,
          validly incorporated and existing under the laws of the Grand Duchy of
          Luxembourg on 19 January 2001, with domicile at 46A avenue John F.
          Kennedy, L-1855 Luxembourg, registered with the Companies and
          Commercial Registry under number RC B-80.602.

          It is represented by Mr. Jose Olivera Martinez, of legal age, married,
          of Spanish nationality, resident in Luxembourg, Rue du Marechal Foch
          40, with "carte de sejour" of Luxembourg number 198556-D. He acts in
          his capacity as Managing Director, with authority to represent and
          bind the company with his sole signature, in accordance with the
          certificate issued by the Notary of Luxembourg Mr. Andre-Jean-Joseph
          Schwachtgen, on 5 May 2004, duly apostilled pursuant to the Hague
          Convention.

(4)       DELPHIRICA INVESTMENTS S.A.R.L., a company of Luxembourg nationality,
          duly incorporated and validly existing under the laws of the Grand
          Duchy of Luxembourg, on 19 January 2001, domiciled at 46A avenue John
          F. Kennedy, L-1855 Luxembourg, registered with the Companies and
          Commercial Registry under number RC B-80.575.

          It is represented by Mr. Jose Olivera Martinez, of legal age, married,
          of Spanish nationality, resident in Luxembourg, Rue du Marechal Foch
          40, with "carte de sejour" of Luxembourg number 198556-D. He acts in
          his capacity as Managing Director, with authority to represent and
          bind the company with his sole signature, in accordance with the
          certificate issued by the Notary of Luxembourg Mr. Andre-Jean-Joseph
          Schwachtgen, on 5 May 2004, and duly apostilled pursuant to the Hague
          Convention.

(5)       ALOSEM SOCIEDAD CIVIL, a company of Spanish nationality, domiciled in
          Madrid, Paseo de la Castellana 216, incorporated by means of a public
          deed authorised by the Madrid Notary Public Mr, Fco. Javier Vigil de
          Quinones y Parga on 26 January 2001, under number 279 of his notarial
          records. Its Tax Identification Number is G-82890427.

          It is represented by Mr. Rafael Mate Rodriguez, of legal age, married,
          resident in Madrid, with domicile to such effects in Paseo de la
          Castellana 216, and with Identity Card Number 51.053.814-R, in
          accordance with the power arising from the deed of incorporation.

(6)       TESALIA SOCIEDAD CIVIL, a company of Spanish nationality, domiciled in
          Madrid, Paseo de la Castellana 216, incorporated by means of a public
          deed granted before the

                                       2
<PAGE>

          Madrid Notary public Mr. Fco. Javier Vigil de Quinones y Parga and 11
          January 2001, under number 82 of his corporate records. Its Tax
          Identification Number is G-82888090.

          It is represented by Mr. Rafael Mate Rodriguez and Mr. Javier Loizaga
          Jimenez acting jointly, of legal age, married, resident in Madrid,
          domiciled at Paseo de la Castellana 216, and with Tax Identification
          Number 51.053.814-R and 5.376.123-B, respectively, in accordance with
          the power of attorney granted in the incorporation deed.

(7)       CAPITAL STOCK S.C.R., S.A., of Spanish nationality, domiciled in
          Madrid, Fortuny number 45, incorporated for an indefinite period of
          time by means of a public deed authorised by the Madrid Notary Public
          Mr. Fco. Javier Vigil de Quinones y Parga, on 15 January 2001, under
          number 137 of his corporate records; registered in the Commercial
          Registry of Madrid under tomo 16160, folio 23, hoja M-273891. Its Tax
          Identification Number is A-82879701. It is registered with the
          Administrative Registry of Venture Capital Companies of the Spanish
          National Stock Market Commission ("Comision Nacional del Mercado de
          Valores") under number 51.

          It is represented by Mr. Javier Loizaga Jimenez, of legal age,
          married, with domicile for these purposes in Madrid, Paseo de la
          Castellana 216, and with National Identity Card number 5.376.123-B,
          acting under the power of attorney granted in his favour by means of
          the public deed granted before the Madrid Notary Public Mr. Francisco
          Javier Vigil de Quinones y Parga, on 15 January 2.001, under number
          138 of his notarial records, registered under the third entry in the
          Commercial Registry sheet of the Company

          The Parties listed in (3) (7) to above shall be referred to as THE
          INVESTMENT GROUP or THE PURCHASER)

BACKGROUND:

(A)       United Surgical Partners Europe, S.L. (the Company) is a limited
          liability company ("sociedad de responsabilidad limitada")
          incorporated in Spain on 5 May 1998 by virtue of a public deed granted
          on 5 May 1998 before the Madrid Notary Public Mr. Victor Manuel
          Garrido Palma under number 1084 of his corporate records, under the
          name of Comercial Walk Mil, S.L, with registered address at Calle
          Miguel Angel, 23, 3rd Floor, Madrid, Spain, and being registered with
          the Mercantile Register of Madrid, Volume 13115, Sheet 193, Section 8,
          Page M-211991 and with Tax Identification Code B82027566. The capital
          of the Company is on the date of this Agreement Euro 20,308,679.48
          divided into 3,277,903 Class A Participations of Euro 6.01 each,
          numbers 1 to 3,277,903 (inclusive), all of which are registered in the
          name of the Seller (the Class A Participations or the Participations)
          and 101,245 Class B participations of Euro 6.01 each, numbers
          3,277,904 to 3,379,148 (inclusive), all of which are registered in the
          name of the Management Members (Class B Participations) as defined
          below.

(B)       The Company owns and operates surgical facilities including private
          surgical hospitals and walk-in surgical centres in Spain (including
          well reputed centres such as Instituto Dexeus, Clinica Sagrado Corazon
          or Hospital San Carlos, and certain development projects, such as that
          affecting Instituto Dexeus) through the Subsidiaries and the
          Associated Companies.

(C)       Particulars of the Company and its Subsidiaries and Associated
          Companies are set out in the schedules headed "The Company" and
          "Subsidiaries and Associated Companies".

(D)       The Seller has full legal title to all of the Class A Participations,
          by virtue of the following:

          -         Participations sale and purchase deed entered into by USP
                    International Holdings Inc (as seller) and USPE Holdings
                    Limited (as buyer) and authorised on, 6 June 2002, by Notary
                    of Madrid, Andres de la Fuente O'Connor.

                                       3
<PAGE>

                    By means of this deed the Seller acquired 1,586,365
                    participations of the Company, numbered from 92,956 to
                    531,171, from 541,043 to 1,689,190 and number 1,689,191, all
                    of them inclusive, of E 6.010121 value each.

          -         Deed of amendment and of decrease of capital by means of
                    contributions' return authorised, on 6 June 2002, by Notary
                    of Madrid, Andres de la Fuente O'Connor, under his protocol
                    number 667.

                    By means of this public deed the nominal value of all the
                    participations created then in the Company decreased to
                    E 6.01 each.

          -         Deed of capital increase authorised, on 27 December 2002, by
                    Notary of Madrid, Fernando de la Camara Garcia, under his
                    protocol number 3,788.

                    By means of this public deed the Seller acquired 1,691,538
                    newly created participations in the Company, of E 6.01
                    value each, numbered from 1,689,192 to 3,380,729, both
                    inclusive.

          -         Deed of decrease of capital by means of amortisation of own
                    participatiosns authorised, on 27 December 2002, by the
                    Notary of Madrid, Fernando de la Camara Garcia, under his
                    protocol number 3,789.

                    By means of this public deed, 102,826 participations of the
                    Company were amortised and the remaining capital was divided
                    in 3,277,903 participations of E 6.01 value each,
                    numbered from 92,956 to 531,171, from 541,043 to 1,689,190,
                    number 1,689,191 and from 1,689,192 to 3,380,729, all of
                    them inclusive, owned by the Seller (which became then the
                    sole member of the Company).

          -         Deed of capital increase, partial amendment of by-laws and
                    loosing of sole member condition authorised, on 27 June
                    2003, by the Notary of Madrid, Fernando de la Camara Garcia,
                    under his protocol number 1,760.

                    By means of this public deed, the 3,277,903 participations
                    in which the capital was divided were renumbered so the
                    102,826 participations numbered from 3,277,904 to 3,380,729,
                    both inclusive, were given numbers 1 to 92,955 and 531,172
                    to 541,042, all of them inclusive.

                    Furthermore, 101,245 participations were created and assumed
                    by different individuals.

                    As consequence of this public deed, the capital of the
                    Company is on the date of this Deed Euro 20,308,679.48
                    divided into 3,277,903 Class A participations of Euro 6.01
                    each, numbers 1 to 3,277,903 (inclusive), all of which are
                    registered in the name of the Seller (the Participations as
                    defined above).

          The Class A Participations represent a 97 % of the capital of the
          Company.

(E)       The Investment Group, in order to determine the merits of pursuing the
          Transaction from an economical, financial, tax and legal point of
          view, has carried out a due diligence based on copies of the due
          diligence reports prepared by the Sellers' legal and financial
          advisors referred to in the Disclosure Letter (the Vendor's Due
          Diligence) and the analysis of certain of the documents made available
          to the Purchaser in the Data Room (the Data Room Documents listed in
          the Schedule "data room documents") located at the premises of the
          Seller's legal and financial advisors offices on 8, 9, 12, 20 and 28
          July 2004 with the guidance of its own professional advisors (the Due
          Diligence).

(F)       The Investment Group is a private equity investor with know-how and
          expertise in the industrial sector in which the Transaction Companies
          develop their businesses and it is

                                       4
<PAGE>

          fully aware of the functioning of the Spanish market in this sector.
          The Investment Group has been advised in relation to the Transaction
          by professional advisors with expertise in these types of transactions
          and in the field in which the Transaction Companies develop their
          businesses.

(G)       The Seller wishes to sell and the Investment Group wishes to purchase
          all the Participations, on the terms set out in this Agreement.

NOW THEREFORE, the Investment Group and the Seller have agreed to enter into
this Agreement pursuant to the following

CLAUSES:

1.        INTERPRETATION

1.1       In addition to terms defined elsewhere in this Agreement, the
          definitions and other provisions in schedule headed "Interpretation"
          apply throughout this Agreement, unless the contrary intention
          appears.

1.2       In this Agreement, unless the contrary intention appears, a reference
          to a clause or schedule is a reference to a clause or schedule to this
          Agreement.

1.3       The headings in this Agreement do not affect its interpretation.

2.        OBLIGATION TO EVIDENCE AUTHORITY

2.1       Mr. Jason B. Cagle hereby declares that he is a duly authorised
          representative of Seller and the Guarantor, under the laws applicable
          to the Seller and the Guarantor in respect of capacity and hereby
          undertakes to provide evidence of such authority in a form
          satisfactory to the Notary formalising this Agreement.

2.2       The Notary shall be deemed to have received satisfactory evidence of
          such authority if he receives (i) valid original powers of attorney
          duly legalised and apostilled evidencing the authority of Mr. Jason B.
          Cagle to enter into this Agreement on behalf of the Seller and the
          Guarantor prior to the date hereof or (ii) a ratification of this
          Agreement by a duly authorised representative of the Seller and the
          Guarantor whose authority is accredited by means of a valid original
          power of attorney duly notarised and apostilled and, in both cases,
          with any such other formalities as the Notary may require.

          In the particular case of the Guarantor, it will be accepted that he
          evidences his authority by means of any other document, provided that
          a legal opinion issued by a well reputed law firm in Delaware, United
          States, or with capacity to act in such State is attached, stating
          that the signatory is duly authorised to give the guarantee provided
          for hereunder.

2.3       When the Notary is deemed to have received satisfactory evidence of
          Mr. Jason B. Cagle's authority to represent the Seller and the
          Guarantor in accordance with the above, then the Notary shall deliver
          the two bank cheques ("cheques bancarios") referred to in clause
          6.2(a) to the Seller against acknowledgement of receipt to its entire
          satisfaction by the Seller. Such delivery shall be made in favour of
          the person authorised by the Seller to appear and produce the
          corresponding power of attorney upon recognition by the Notary of such
          authority.

2.4       If the action contemplated in clause 2.2 do not take place by 12
          August 2004 then the Purchaser shall have the option to require the
          specific performance of this provision or terminate this Agreement. In
          any of these two cases the Notary shall return the cheques referred to
          in 6.2(a) to the Purchaser. In case the Purchaser elects to require
          specific performance, then the amount payable under 6.2(b) will be the
          amount therein referred plus the six (6) million under 6.2(a) on
          Completion.

                                       5
<PAGE>

3.        OBJECT OF THE AGREEMENT

          The object of this Agreement is:

          (a)       to provide for the sale and purchase of the Participations,
                    subject to the satisfaction of the terms for Completion
                    under clause 5; and

          (b)       to set out the rights and obligations of the Parties between
                    Signing Date and Completion, and also thereafter in relation
                    to certain matters arising out of this Agreement.

4.        SALE AND PURCHASE

4.1       Subject to the satisfaction of the terms for Completion under clause
          5, subject to clause 13, and in accordance with the terms of this
          Agreement, the Seller hereby sells and the Investment Group hereby
          purchases (directly or through an investment vehicle) the
          Participations free from all charges, liens, encumbrances and claims
          whatsoever and together with all rights attaching to them at
          Completion (the Transaction).

4.2       The Seller undertakes that the Company shall not declare, pay or make
          any dividends or distributions between the Signing Date and
          Completion.

5.        TERMS FOR COMPLETION

          Completion of the Transaction and, therefore, the transfer of
          ownership of the Participations will take place upon compliance by the
          Seller with Clause 13 below not later than ninety (90) days since the
          Signing Date provided that, between the Signing Date and Completion,
          there has not occurred a Material Adverse Change. Material Adverse
          Change means any event or circumstance (or any combination thereof),
          which in the reasonable opinion of the Mandated Arranger has
          materially adversely affected or could materially adversely affect,
          during the period from the Signing Date to the Completion: (i) the
          business, condition (financial or otherwise), operations, performance,
          assets and rights of the Group Companies taken as a whole; (ii) the
          performance, by the Group Companies taken as a whole, of their
          relevant obligations to third parties, or (iii) the international or
          the syndicated loan market in Spain when the relevant event or
          circumstance is due to an exceptional cause of notorious magnitude
          which could materially prejudice syndication of the Facilities.

          For the avoidance of doubt, the Parties acknowledge and agree that
          nothing in the above paragraph shall prejudice the Purchaser's right
          to make Warranty Claims after Completion in the event of any material
          adverse change in any Group Company that would not prevent Completion
          from taking place because it does not entail a material adverse change
          in the Group Companies taken as a whole.

6.        PRICE

6.1       Price

          The Price for the sale and purchase of the Participations shall be the
          payment in cash by the Purchaser of the total sum of one hundred and
          twelve million thirty eight thousand four hundred and sixty two
          (112,038,462) Euro, payable in accordance with clause 6.2 (the Price)
          and subject to the adjustment provided in clause 7 below.

6.2       Payment of Price

          The Price shall be paid by the Purchaser to the Seller as follows:

          (a)       An amount equal to six million (6,000,000) Euro is hereby
                    delivered by the Investment Group, as advanced payment on
                    account of the Price by means of

                                       6
<PAGE>

                    banking cheques ("cheques bancarios nominativos") (the
                    Advanced Payment), which upon execution of this Agreement
                    shall be deposited with the Notary formalising this
                    transaction.

          (b)       At Completion the Purchaser shall deliver to the Seller the
                    remaining amount of the Price, this is, an amount equal to
                    one hundred and six million thirty eight thousand four
                    hundred and sixty two (106,038,462) Euro (the Payment at
                    Completion), as further provided for in the schedule headed
                    "Completion".

          (c)       If the Positive Price Adjustment is greater than Euro
                    250,000, within fifteen (15) Business Days following the
                    Determination Date, the Purchaser shall deliver to the
                    Seller an amount equal to the Positive Price Adjustment by
                    means of banking cheques or bank transfer to the account to
                    be indicated by the Seller, if possible value date
                    Completion date, and the Price shall be construed to mean in
                    this Agreement, other than in clauses 6 and 7, and amount
                    equal to the Price, as set out in clause 6.1, plus the
                    Positive Price Adjustment.

          (d)       If the Negative Price Adjustment is greater than Euro
                    250,000, within fifteen (15) Business Days following the
                    Determination Date, the Seller shall deliver to the
                    Purchaser an amount equal to the Negative Price Adjustment,
                    by means of banking cheques or bank transfer to the account
                    to be indicated by the Seller, if possible value date
                    Completion date, and the Price shall be construed to mean in
                    this Agreement, other than in clauses 6 and 7, and amount
                    equal to the Price, as set out in clause 6.1, less the
                    Negative Price Adjustment.

7.        ADJUSTMENT OF THE PRICE

7.1       If the Completion Price, calculated in accordance with the schedule
          headed "Completion Balance Sheet", is greater than the Price, as set
          out in clause 6.1, then the Positive Price Adjustment shall be equal
          to the difference between the Completion Price and the Price, as set
          out in clause 6.1.

7.2       If the Completion Price, calculated in accordance with the schedule
          headed "Completion Balance Sheet", is lower than the Price, as set out
          in clause 6.1, then the Negative Price Adjustment shall be equal to
          the difference between the Completion Price and the Price, as set out
          in clause 6.1.

7.3       If either the Positive Price Adjustment or the Negative Price
          Adjustment are equal or lower than Euro 250,000, then no Price
          adjustment shall apply.

8.        POSITION OF PURCHASER

8.1       The Purchaser acknowledges that details of the Participations and the
          items owned or used by the Company and its Subsidiaries and Associated
          Companies and their respective businesses have been made available to
          it for inspection prior to the date of this Agreement during the Due
          Diligence and that the Purchaser has been afforded an opportunity to
          inspect them during the Due Diligence.

8.2       The Seller has specifically told the Purchaser that the Purchaser must
          rely on the Purchaser's own opinion and/or professional advice
          concerning the Participations and the items owned and used by the
          Company and the Subsidiaries and Associated Companies and their
          respective businesses pursuant to this Agreement, their quality, state
          and condition, their fitness and/or suitability for any purpose, and
          the possibility that some of them may have defects.

8.3       The Purchaser acknowledges that it has entered into this Agreement
          having satisfied itself of all matters relating to it and without
          reliance on any warranty or representation made by the Seller (apart
          from clause 11 and the schedule headed "Seller's Warranties") or by
          any person acting or purporting to act on behalf of the Seller.

                                       7
<PAGE>

8.4       No waiver by or on behalf of the Seller of any of the requirements of
          this Agreement or any of its rights under this Agreement shall release
          the Purchaser from full performance of the obligations stated in this
          Agreement.

9.        COMPLETION

9.1       Completion shall take place at the offices of the Seller's Lawyers at
          10 a.m. on the tenth Business Day after the date on which the terms
          for Completion set out in Clause 5 have been met, or at such other
          time and on such other date as the Seller and the Purchaser may agree.

9.2       Pending Completion (and whether or not the terms for Completion set
          out in Clause 5 are satisfied) the provisions of the schedule headed
          "Pre-Completion" shall apply.

9.3       At Completion the Parties shall do or procure to be done those things
          set out in the schedule headed "Completion" which will be deemed to
          happen in a single act ("unidad de acto").

9.4       If Completion does not take place on the date set out in clause 9.1
          above as a result of the Purchaser failing to comply fully with an
          obligation under this clause 9 or the schedule headed "Completion",
          the Seller may at its option (but without prejudice to any other right
          or remedy it may have) by notice in writing to the Purchaser elect to:

          (a)       proceed to Completion in so far as reasonably practicable
                    and, in any case, without prejudice to its rights under this
                    Agreement;

          (b)       postpone the date for Completion to the first Business Day
                    on which the Seller reasonably believes that Completion may
                    happen or to such other date as may be agreed by the Parties
                    provided that such other agreed date shall be not longer
                    than one (1) month from the date set out in clause 9.1
                    above; or

          (c)       terminate this Agreement, in which case the Seller shall
                    keep the Advanced Payment as penalty clause ("clausula
                    penal"), without prejudice to any additional right to
                    damages.

          If the Seller elects to postpone the date for Completion in accordance
          with clause (b) above then the provisions of this Agreement shall
          apply as if such postponed date were the date for Completion for all
          purposes.

9.5       If Completion does not take place on the date set out in clause 9.1
          above as a result of the Seller failing to comply fully with a
          material obligation under clause 5, this clause 9 or the schedule
          headed "Completion", the Purchaser may at its option (but without
          prejudice to any other right or remedy it may have) by notice in
          writing to the Seller elect to:

          (a)       proceed to Completion in so far as reasonably practicable
                    and, in any case, without prejudice to its rights under this
                    Agreement; or

          (b)       postpone the date for Completion to the first Business Day
                    on which the Purchaser reasonably believes that Completion
                    may happen or to such other date as may be agreed by the
                    Parties provided that such other agreed date shall be not
                    longer than one (1) month from the date set out in clause
                    9.1 above; or

          (c)       terminate this Agreement, in which case the Purchaser shall
                    recover the Advanced Payment and shall be entitled to
                    receive an amount equivalent to the Advance Payment as
                    penalty clause ("clausula penal"), without prejudice to any
                    additional right to damages.

                                       8
<PAGE>

9.6       If the Purchaser elects to postpone the date for Completion in
          accordance with clause (b) then the provisions of this Agreement shall
          apply as if such postponed date were the date for Completion for all
          purposes.

9.7       If Completion does not take place in accordance with Clause 5 for any
          reason, and subject to clauses 9.4 and 9.5:

          (a)       except for this clause, clause 14 (Confidentiality), clause
                    15 (Payment and Notices), clause 16 (Further Assurances),
                    clause 17 (General) (except for clause 17.5), clause 18
                    (Whole Agreement) and clause 19 (Governing Law and
                    Arbitration), and the provisions of the clause and schedule
                    headed "Interpretation", all the other clauses of this
                    Agreement shall lapse and cease to have effect; but

          (b)       the lapsing of those provisions shall not affect any accrued
                    rights or liabilities of any Party.

9.8       Risk and ownership of all the Participations shall pass to the
          Purchaser on Completion.

9.9       The Parties further agree that if the financing is not obtained for
          reasons not attributable to the Purchaser, then the only consequence
          will be that Completion will not take place and the Seller will keep
          the Advanced Payment.

9.10      For the avoidance of doubt, if a Material Adverse Change occurs,
          Completion shall not take place and the Seller shall return the
          Advanced Payment to the Investment Group.

10.       USPI'S PERMANENCE

10.1      The Parties have agreed that either the Seller or the Guarantor (for
          these purposes, USPI) shall remain indirectly in the capital of the
          Company and, to that effect, that it shall acquire, on Completion, 15%
          of the capital ("USPI'S STAKE") of the vehicle that will be used to
          acquire the Participations ("NEWCO") provided that USPI's stake does
          not involve a contribution (including face value plus premium if
          applicable in excess of twelve million four hundred thousand
          (12,400,000) Euro USPI's Stake shall be acquired by USPI at the same
          price as the Purchaser shall acquire (by means of purchase, capital
          subscription, contribution or otherwise) Newco's shares or
          participations (the Newco Investment Price). The voting and
          pre-emption rights ("Derechos de asuncion o adquisicion preferente")
          attached to USPI's Stake shall be assigned to the Investment Group on
          Completion in the most effective manner, and this circumstance shall
          be regulated in the corresponding shareholders' or members' agreement.

10.2      During the permanence of USPI in the capital of Newco, USPI shall not
          (directly or indirectly) (i) carry out any activity or participate or
          have an interest in any business or company that competes with the
          Group Companies within the geographic area in which the Group
          Companies operate currently or in the future (excluding the U.S. and
          the U.K.) or (ii) approach any of the employees, officers directors or
          managers of the Group Companies offering a position, contract or
          employment, or contract with or give a position to any such employees,
          officers, directors or managers (in this latter case, except where
          such contract or position is entered into or given in the context of a
          recruitment process carried out through newspapers announcements,
          internet announcements or magazine announcements, addressed to the
          general public).

10.3      Also on Completion, USPI shall grant a call option over USPI's stake
          in favour of the Investment Group (the Call Option), that shall be
          exercisable within 90 days after the second anniversary of Completion,
          and in compensation the Investment Group shall grant a put option in
          favour of the Seller (the Put Option) that shall also be exercisable
          90 days after the second anniversary of Completion. The exercise price
          of both the Call Option and the Put Option shall be the Newco
          Investment Price paid by USPI, increased at a yearly compound interest
          rate of 3-month Euribor plus a margin of 1.5%. Payment of the price

                                       9
<PAGE>

          of the Call Option shall be guaranteed by the Investment Group by
          means of a bank guarantee ("aval bancario") to be issued by a Spanish
          bank to the reasonable satisfaction of the Seller and to be delivered
          to the Seller on Completion pursuant to the Schedule headed
          "Completion". The Parties shall establish an expeditious mechanism for
          the exercise of the Call Option and the Put Option, so that the
          transfer of USPI's Stake is automatic upon exercise of, and payment
          for, the relevant Option. The shareholder's agreement referred to in
          10.1 above shall provide that the Call Option and the Put Option shall
          be exercisable over any shares, participations or rights that may
          succeed USPI's Stake as a consequence of capital decreases,
          transformation, merger or other corporate restructuring in the
          understanding that the exercise price of the Call Option and the Put
          Option shall be as provided for in this clause 10.3 provided, however,
          that to the extent USPI receives any compensation as a consequence of
          such capital decrease, transformation, merger or other corporate
          restructuring the amount of such compensation shall be deducted from
          the price of the Call Option or the Put Option (as the case may be) in
          accordance with this clause 10.3.

11.       SELLER'S WARRANTIES

11.1      The Seller warrants to the Purchaser that, except as "Disclosed" to
          the Purchaser, each of the Warranties made by the Seller set out in
          this clause 11 and the schedule headed "Seller's Warranties" is and
          will be as of Completion true and accurate in all material respects
          and not misleading, and undertakes to indemnify and hold the Purchaser
          harmless from any Damages arising out of any such statements not being
          true or accurate or being misleading (Breach of Warranties).

          Disclosed means:

          (a)       a problem or contingency identified in the Disclosure Letter
                    (which includes specific disclosures and the Vendor's Due
                    Diligence) or information in the Disclosure Letter that
                    renders a specific Warranty untrue

          (b)       a problem or contingency identified in the Data Room, in
                    this latter case only to the extent that the Data Room
                    Documents would have led an independent third party to know
                    that any of the Warranties was not true and accurate or was
                    misleading,

          In this respect, the Seller represents and warrants to the Purchaser
          that as far as the Seller is aware there is nothing in the Data Room
          Documents that should have been Disclosed but is not the subject of a
          specific disclosure in the Disclosure Letter or is not disclosed in
          the Vendor's Due Diligence. For the avoidance of doubt, the liability
          of the Seller for Breach of Warranties (this is, for matters not
          Disclosed) shall only be subject to the limits set out in Schedule 4
          ("Limits on Warranty Claims") on this clause 11 but not limited in any
          other manner.

11.2      Each of the Warranties set out in the several paragraphs of the
          schedule headed "Seller's Warranties" is separate and independent and,
          except as expressly provided to the contrary in this Agreement, is not
          limited by reference to any other paragraph of that schedule or by
          anything in this Agreement.

11.3      The liability of the Seller in connection with the Warranties shall be
          subject to the limitations contained in, and to the other provisions
          of, the schedule headed "Limits on Warranty Claims" and any Warranty
          Claim shall be subject to the provisions of that schedule.

11.4      Any payment made by the Seller in respect of a Breach of the
          Warranties shall, to the extent possible, be deemed to be a reduction
          in the Price.

11.5      The Purchaser shall only be entitled to make a claim of any type or
          nature under or in connection with this Agreement to the Seller
          pursuant to the provisions of this clause

                                       10
<PAGE>

          (save with respect to claims relating to (i) the Adjustment of the
          Price, which shall be dealt with in accordance with clause 7 and the
          schedule headed "Completion Balance Sheet", (ii) Seller's obligations
          under the schedules headed "pre-completion" and "Completion", (iii)
          Seller's liabilities under clause 9.5(c), and clauses 10, 13 (which
          shall be dealt with in accordance with clause 9.5(c), 14, 15, 16, 17,
          and 18).

11.6      The Seller hereby agrees to fully indemnify and hold the Purchaser
          harmless, regardless of any other provision or Disclosure in this
          Agreement, in relation to any Damages arising from matter that has
          occurred before Completion and results in:

          (a)       any tax contingency affecting the Group Companies

          (b)       any labour contingency affecting the Group Companies (save
                    for the potential labour condition of some medical personnel
                    who renders services to the Group Companies identified in
                    the Vendor's Due Diligence)

          (c)       any contingency adversely affecting ownership over the
                    Participations or the shares or participaciones of the
                    Subsidiaries.

          (d)       None of the Group Companies not being the holder of all
                    exploitation rights ("derechos de explotacion") over the AHM
                    Software world-wide and for the whole term of their legal
                    protection.

          (e)       the net worth of the Group Companies that are under a
                    dissolution cause not having been restored by Completion.

          Claims under this provision shall be dealt with, mutatis mutandi, in
          all cases as Warranty Claims and, therefore, subject to the provisions
          of this clause and the schedule headed "Limit on Warranties" provided,
          however, that claims for any contingency adversely affecting ownership
          over the Participations or the shares or quotas of the Subsidiaries
          shall not be subject to any limitations, including the exclusions,
          financial limits, time limits or other limitations whatsoever.

12.       PURCHASER'S WARRANTIES

12.1      The Purchaser warrants to the Seller that each of the statements set
          out in the schedule headed "Purchaser's Warranties" is and will be as
          of Completion true, accurate and not misleading, and undertakes to
          indemnify and hold the Seller harmless from any such statements not
          being true and accurate or being misleading.

12.2      Each of the warranties set out in the several paragraphs of the
          schedule headed "Purchaser's Warranties" is separate and independent
          and, except as expressly provided to the contrary in this Agreement,
          is not limited by reference to any other paragraph of that schedule or
          by anything in this Agreement.

13.       OUTSTANDING SECURITY

13.1      The Seller undertakes that at Completion any existing pledge over the
          Participations and over the shares and participations of the
          Subsidiaries shall be cancelled on or before Completion as set out in
          the schedule headed "Completion".

13.2      The Seller undertakes that any security existing over any Group
          Companies' assets shall be cancelled (both economically and formally,
          provided that registration with the relevant registry shall not be
          necessary) on or before Completion, except the mortgage existing over
          the Marbella Hospital.

                                       11
<PAGE>

14.       CONFIDENTIALITY

14.1      Neither the Seller nor the Purchaser shall make (or permit any other
          member of the Seller's Group or the Purchaser's Group to make) any
          announcement concerning this Transaction, this Agreement or any
          ancillary matter before, on or after Completion.

14.2      The Purchaser shall and shall procure that:

          (a)       each member of the Purchaser's Group (from time to time)
                    shall keep confidential all information provided to it by or
                    on behalf of the Seller or otherwise obtained by or in
                    connection with this Agreement which relates to any member
                    of the Seller's Group; and

          (b)       if after Completion any Group Company holds confidential
                    information relating to the Seller's Group, it shall keep
                    that information confidential and, to the extent reasonably
                    practicable, shall return that information to the Seller or
                    destroy it, in each case without retaining copies.

14.3      The Seller shall and shall procure that:

          (a)       the Seller's Group shall keep confidential all information
                    provided to it by or on behalf of the Purchaser or otherwise
                    obtained by or in connection with this Agreement which
                    relates to any member of the Purchaser's Group; and

          (b)       if after Completion the Seller holds confidential
                    information relating to any Group Company, it shall keep
                    that information confidential and, to the extent reasonably
                    practicable, shall return that information to the Purchaser
                    or destroy it, in each case without retaining copies.

14.4      Nothing in this clause prevents any announcement being made or any
          confidential information being disclosed:

          (a)       with the written approval of the other Party, which in the
                    case of any announcement shall not be unreasonably withheld
                    or delayed; or

          (b)       to the extent required by law (including US securities
                    laws), any non-legally binding agreement with a Trade Union
                    or any competent regulatory body (including the requirements
                    of the NASDAQ National Stock Market), but a Party required
                    to disclose any confidential information shall promptly
                    notify the other Party, where practicable and lawful to do
                    so, before disclosure occurs and co-operate with the other
                    Party regarding the timing and content of such disclosure or
                    any action which the other Party may reasonably elect to
                    take to challenge the validity of such requirement.

14.5      Nothing in this clause prevents disclosure of confidential information
          by any Party:

          (a)       to the extent that the information is in or comes into the
                    public domain other than as a result of a breach of any
                    undertaking or duty of confidentiality by that Party; or

          (b)       to that Party's professional advisers, auditors or bankers,
                    but before any disclosure to any such person the relevant
                    Party shall procure that he is made aware of the terms of
                    this clause and shall use its best endeavours to procure
                    that such person adheres to those terms as if he were bound
                    by the provisions of this clause.

15.       PAYMENT AND NOTICES

15.1      All payments to be made under this Agreement shall be made in full
          without any set-off or counterclaim and free from any deduction or
          withholding save as may be required by law,

                                       12
<PAGE>

          in which event such deduction or withholding shall not exceed the
          minimum amount which it is required by law to deduct or withhold.

15.2      If any amount required to be paid under this Agreement is not paid
          when it is due, such amount shall bear interest at the rate of 3-month
          Euribor plus 2 % per annum, calculated on a daily basis for the period
          from the relevant due date for payment up to and including the date of
          actual payment, before and after any judgement.

15.3      Any notice given in connection with this Agreement must be in English
          unless the document is a statutory or other official document in which
          case, if required by the Seller, it shall be accompanied by an English
          translation.

15.4      Any notice or other formal communication given under this Agreement
          must be in writing (which does not include e-mail) and may be
          delivered, faxed or sent by overnight courier to the Party to be
          served at its fax number or address appearing in this clause or at
          such other fax number or address as it may have notified to the other
          Party in accordance with this clause. If sent by fax, it must be
          followed by a hardcopy by courier or its receipt acknowledged by the
          other Party.

15.5      Any notice or other formal communication shall be deemed to have been
          given:

          (a)       if delivered, on the day of delivery; or

          (b)       if faxed before 17.00 in the place of receipt, on the day
                    faxed or, otherwise, on the day after it was faxed; or

          (c)       if sent by overnight courier, at 10.00 a.m. on the day after
                    it was sent,

          provided that if such day is not a Business Day, such notice shall be
          deemed to have been given on the next Business Day.

15.6      In proving service of a notice or other formal communication it shall
          be sufficient to prove that delivery was made, a fax transmission
          report was obtained or that the envelope containing the communication
          was properly addressed and couriered.

15.7      Any notice sent to the Purchaser shall be sent to:

          Address:                  Paseo de la Castellana 216, 9(a), 28066
                                    Madrid
          Fax number:               +34 91 3449191
          For the attention of:     Javier Loizaga / Maria Sanz / Rafael Mate
                                    Rodriguez

          with copy to:

          Address:                  Ashurst, C/ Alcala 44 - 5 degrees, 28014
                                    Madrid
          Fax number:               +34 91 3649801/02
          For the attention of:     Jesus Almoguera

          and any notice sent to the Seller shall be sent to:

          Address:                  15305 Dallas Parkway, Suite 1600, Addison
                                    Texas 25001
          Fax number:               (922) 262 00 84
          For the attention of:     Chief Executive Officer

          with copy to:

          Address:                  Allen & Overy, Pedro de Valdivia, 10, 28006
                                    Madrid, Spain
          Fax number:               +34 91 782 9899
          For the attention of:     Fernando Torrente and Jose Antonio Sanchez
                                    Dafos

                                       13
<PAGE>

16.       FURTHER ASSURANCES

          All Parties shall, so far as reasonably able, do or procure all things
          as may be required to give effect to this Agreement, including,
          without limitation, the execution of all deeds and documents,
          procuring the convening of all meetings, the giving of all necessary
          waivers and consents and the passing of all resolutions and otherwise
          exercising all powers and rights available to them.

17.       GENERAL

17.1      Each of the obligations, Warranties, limitations on Warranty Claims
          and undertakings set out in this Agreement which is not fully
          performed at Completion will continue in force after Completion.

17.2      None of the rights or obligations under this Agreement may be assigned
          or transferred without the prior written consent of the other Party,
          which shall not be unreasonably withheld or delayed, provided,
          however, that the Purchaser shall in any event be entitled to assign
          its rights and obligations hereunder (i) to Newco; (ii) in the event
          of a transfer of the Company or its Subsidiaries, or any other
          restructuring, within the Purchaser's Group, or (iii) for purposes of
          obtaining or securing financing related to the purchase of the Company
          or as a consequence of the enforcement of security taken in relation
          to such financing.

17.3      Save as otherwise provided in this Agreement, each Party shall pay the
          costs and expenses incurred by it in connection with the entering into
          and completion of this Agreement provided that the Purchaser shall
          bear and pay all notarial costs in connection with the notarisation of
          the Agreement and documents connected with the transfer of the
          Participations provided for hereunder.

17.4      This Agreement may be executed in any number of counterparts, all of
          which taken together shall constitute one and the same agreement and
          any Party may enter into this Agreement by executing a counterpart.

17.5      The Purchaser agrees to provide the Seller, any other member of the
          Seller's Group, and their representatives and advisers on not less
          than 5 (five) days' notice and during normal business hours with full
          and free access (including the right to take copies) to the books of
          accounts and other financial records of the Company (subject to the
          Seller keeping such books and records confidential) which relate to
          the period up to Completion as the Seller, or any other member of the
          Seller's Group may reasonably request for the purpose of reviewing its
          statutory accounts or any computation or return relating to Tax or as
          may be required by any Tax Authority. The Purchaser further agrees for
          the same purposes to give the Seller and any other member of the
          Seller's Group and their representatives and advisers reasonable
          access to its employees (including the employees of the Group
          Companies) and to respond to reasonable requests for the information
          related to the above-mentioned period. In reciprocity, the Seller
          agrees to facilitate the Purchaser any information or assistance in
          relation to the fiscal years preceding this Agreement which may impact
          the taxation of the Purchaser after Completion.

17.6      This Agreement has been prepared and signed in English. The Parties
          agree that there will be a translation into Spanish to be prepared by
          the Purchaser by Completion. In the event of any discrepancy, the
          English version shall prevail.

17.7      If any provision of this Agreement is held to be illegal, invalid or
          unenforceable in whole or in part the legality, validity and
          enforceability of the remaining provisions of this Agreement shall not
          in any way be affected or impaired thereby, and the Parties shall
          negotiate in good faith to replace the offending provision by another
          enforceable, valid and legal provision that has the same or a similar
          as possible effect on the transactions hereby contemplated as the
          original provision.

                                       14
<PAGE>

17.8      The rights of each Party under this Agreement:

          (a)       may be exercised as often as necessary;

          (b)       are cumulative and not exclusive of rights and remedies
                    provided by law; and

          (c)       may be waived only in writing and specifically.

          Delay in exercising or non-exercise of any such right is not a waiver
          of that right.

18.       WHOLE AGREEMENT

18.1      This Agreement and the documents referred to in it contain the whole
          agreement between the Parties relating to the transactions
          contemplated by this Agreement and supersede all previous agreements
          between the Parties relating to these transactions.

18.2      Each Party acknowledges that in agreeing to enter into this Agreement
          it has not relied on any representation, warranty, collateral contract
          or other assurance (except those set out in this Agreement and the
          documents referred to in it) made by or on behalf of any other Party
          before the signature of this Agreement. Each Party waives all rights
          and remedies which, but for this clause, might otherwise be available
          to it in respect of any such representation, warranty, collateral
          contract or other assurance, provided that nothing in this clause
          shall limit or exclude any liability for gross negligence ("culpa
          grave") or wilful misconduct ("dolo").

19.       GUARANTEE BY THE GUARANTOR AND JOINT AND SEVERAL LIABILITY OF
          DELPHIRICA INVESTMENTS AND JENEBE INTERNATIONAL

19.1      The Guarantor hereby guarantees to the Investment Group (and, in turn,
          the Purchaser) the Seller's Warranties and the obligations and
          indemnity commitments assumed by the Seller hereunder. This guarantee
          is given on a joint and several basis with the obligations of the
          Seller, with an express waiver of the right to force the creditor to
          make use of legal remedies against the debtor before having recourse
          against this guarantee ("beneficio de excusion").

19.2      Delphirica Investments S.a.r.l and Jenebe International S.a.r.l. shall
          be liable for the obligations arising out of this Agreement for all of
          the Investment Group jointly and severally and guarantee jointly and
          severally the obligations of Alosem, S.C., Tesalia, S.C. and Capital
          Stock S.C.R., S.A.

20.       GOVERNING LAW AND ARBITRATION

20.1      This Agreement is governed by and shall be construed in accordance
          with Spanish law.

20.2      Any dispute which arises or occurs between the Parties in relation to
          any thing or matter arising out of or in connection with this
          Agreement shall be finally settled under the Rules of Arbitration of
          the International Chamber of Commerce by three arbitrators, one
          nominated by the Seller and other by the Investment Group each Party
          and the third, who shall be the chairman, selected by the two
          appointed arbitrators or, failing agreement, nominated by the chairman
          (from time to time) of the Court of Arbitration of the International
          Chamber of commerce. The place of the arbitration will be Geneva
          although hearings may be held elsewhere and they will be conducted in
          the English language. Arbitrators shall be licensed to practice
          Spanish law.

                                       15
<PAGE>

AS WITNESS whereof this Agreement has been entered into the day and year first
above written and is executed in two counterparts.

      USPE HOLDINGS LIMITED                    JENEBE INTERNATIONAL S.A.R.L.

________________________________              ________________________________
    SIGNED ON ITS BEHALF BY:                      SIGNED ON ITS BEHALF BY:

 DELPHIRICA INVESTMENTS S.A.R.L.                   ALOSEM SOCIEDAD CIVIL

________________________________              ________________________________
    SIGNED ON ITS BEHALF BY:                      SIGNED ON ITS BEHALF BY:

     TESALIA SOCIEDAD CIVIL                      CAPITAL STOCK S.C.R., S.A.

________________________________              ________________________________
    SIGNED ON ITS BEHALF BY:                      SIGNED ON ITS BEHALF BY:

                                       16
<PAGE>

                                   SCHEDULE 1

                                   THE COMPANY

Company name:                            United Surgical Partners Europe, S.L.

Mercantile Registry details:             Volume 13,115, Section 8 and Page
                                         number M-211991

                                         Mercantile Registry of Madrid

Tax identification code:                 B/82027566

Registered office:                       Miguel Angel 23, 3rd Floor, Madrid,
                                         Spain

Date and place of formation:             5 May 1998 - Madrid, Spain

Directors:                               Gabriel Masfurroll Lacambra (Chairman
                                         and Managing Director)

                                         Donald E. Steen

                                         Soledad Jorge Nebot (Vice Chairman)

                                         William H. Wilcox

                                         Monica Cintado Scokin

Secretary:                               Pedro Antonio Rueda Gonzalez
                                         (Secretary)

                                         Lourdes Ayala Munoz (Vice Secretary)

Accounting reference date:               31 December

Auditors:                                KPMG auditores, S.L.

Capital:                                 E 20,308,679.48

Participations:                          3,379,148

Stake held by the Seller's Group:        97%

                                       17
<PAGE>

                                   SCHEDULE 2

                    THE SUBSIDIARIES AND ASSOCIATED COMPANIES

                            PART 1 - THE SUBSIDIARIES

1.        BRUBA ADVANCE COMP. S.L. (SOCIEDAD UNIPERSONAL)

Mercantile Registry details:             Volume 34,796, Folio 108 and Page
                                         number B-25, 0307

                                         Mercantile Registry of Barcelona

Tax identification code:                 B/62940549

Registered office:                       Avenida Diagonal 652, Building C,
                                         6 degrees, 2nd Floor, Barcelona, Spain

Date and place of formation:             23 July 2002 - Barcelona, Spain

Directors:                               Instituto Dexeus (represented by
                                         Eduardo Serrat Bertran) (sole director)

Secretary:                               N/A

Accounting reference date:               31 December

Auditors:                                N/A

Capital:                                 E 3,006

Participations:                          3,006

Stake held by the Seller's Group:        100%

2.        CLINICA MATERNAL NUESTRA SENORA DE LA ESPERANZA, S..A (SOCIEDAD
          UNIPERSONAL)

Mercantile Registry details:             Volume 487, Folio 110 and Page number
                                         VI-1367

                                         Mercantile Registry of Alava

Tax identification code:                 A/01006790

Registered office:                       Esperanza 3, Vitoria, Spain

Date and place of formation:             19 May 1970 - Vitoria, Spain

Directors:                               Gabriel Masfuroll Lacambra (Chairman)

                                         Juan Pedro Calvo del Molino (Vice
                                         Chairman)

                                         United Surgical Partners Europe, S.L.
                                         (represented by Juan Ramon Arias
                                         Irigoyen) (Managing Director)

                                       18
<PAGE>

                                         Soledad Jorge Nebot

                                         Monica Cintado Scokin

Secretary:                               Gemma Jimenez de las Heras (Secretary)

                                         Jeronimo Herrero Manso (Vice Secretary)

Accounting reference date:               31 December

Auditors:                                KPMG auditores, S.L.

Capital:                                 E 116,259.78

Shares:                                  19,344

Stake held by the Seller's Group:        100%

3.        CLINICA SAGRADO CORAZON, S.L. (SOCIEDAD UNIPERSONAL)

Mercantile Registry details:             Volume 2,907, Folio 1, Page number
                                         SE-37,360

                                         Mercantile Registry of Sevilla

Tax identification code:                 B/41992215

Registered office:                       Avenida Manuel Siurot 49, Sevilla,
                                         Spain

Date and place of formation:             20 May 1999 - Sevilla, Spain

Directors:                               United Surgical Partners Europe, S.L.
                                         (represented by Pedro Ellauri Sanchez)
                                         (Managing Director)

                                         Soledad Jorge Nebot (Vice Chairman)

                                         Gabriel Masfurroll Lacambra (Chairman)

                                         Monica Cintado Scokin

Secretary:                               Juan Pedro Calvo del Molino (Secretary)

                                         Gemma Jimenez de las Heras (Vice
                                         Secretary)

Accounting reference date:               31 December

Auditors:                                KPMG auditores, S.L.

Capital:                                 E 4,433,704

Participations:                          4,433,704

Stake held by the Seller's Group:        100%

4.        DIAGNOSTICOS Y TRATAMIENTOS MEDICOS, S.A.

Mercantile Registry details:             Volume 31,399, Folio 122, Page number
                                         B-

                                       19
<PAGE>

                                         146,806

                                         Mercantile Registry of Barcelona

Tax identification code:                 A/58306036

Registered office:                       Paseo de la Bonanova 67, Barcelona,
                                         Spain

Date and place of formation:             30 December 1986 - Barcelona, Spain

Directors:                               Eduardo Serrat Bertran (Chairman)

                                         Consultorio Dexeus, S.A. (represented
                                         by Daniel Martinez Marroquin)

Secretary:                               Juan Pedro Calvo del Molino (Secretary)

                                         Gemma Jimenez de las Heras
                                         (Vice-Secretary)

Accounting reference date:               31 December

Auditors:                                N/A

Capital:                                 E 324,000

Shares:                                  180,000

Stake held by the Seller's Group:        76.94%

5.        HOSPITALIZACION Y SERVICIOS, S.A.

Mercantile Registry details:             Volume 1,774, Folio 91, Page number
                                         SE-14302

                                         Mercantile Registry of Sevilla

Tax identification code:                 A/41033861

Registered office:                       Avenida Manuel Siurot 49, Sevilla,
                                         Spain

Date and place of formation:             27 August 1973 - Sevilla, Spain

Directors:                               United Surgical Partners Europe, S.L.
                                         (represented by Juan Pedro Calvo del
                                         Molino)

                                         Clinica Sagrado Corazon, S.L. (Sociedad
                                         Unipersonal)

                                         (represented by Manuel Lopez Otero)

                                         Both are joint and several directors

Secretary:                               N/A

Accounting reference date:               31 December

Auditors:                                N/A

Capital:                                 E 60,101.21

                                       20
<PAGE>

Shares:                                  95,158

Stake held by the Seller's Group:        98%

6.        INSTITUTO POLICLINICO SANTA TERESA, S.A.

Mercantile Registry details:             Volume 2,244, Section 8, Folio 17, Page
                                         number C-2,142

                                         Mercantile Registry of La Coruna

Tax identification code:                 A/15015647

Registered office:                       Avenida Alfonso Molinar, Lugar
                                         Penarredonda 4, La Coruna, Spain

Date and place of formation:             2 July 1968 - La Coruna, Spain

Directors:                               Gabriel Masfurroll Lacambra (Chairman)

                                         Juan Pedro Calvo del Molino (Vice
                                         Chairman)

                                         Soledad Jorge Nebot

                                         United Surgical Partners Europe, S.L.
                                         (represented by Juan Ramon Arias
                                         Irigoyen) (Managing Director)

                                         Monica Cintado Scokin

Secretary:                               Gemma Jimenez de las Heras (Secretary
                                         and Legal Counsellor)

                                         Jose Luis Vazquez Travieso (Vice
                                         Secretary)

Accounting reference date:               31 December

Auditors:                                KPMG auditores, S.L.

Capital:                                 E 955,609.25

Shares:                                  31,800

Stake held by the Seller's Group:        95.89%

7.        OBRAS USP MADRID, S.L. (SOCIEDAD UNIPERSONAL)

Mercantile Registry details:             Volume 18,062, Folio 109, Page number
                                         M-312,312

                                         Mercantile Registry of Madrid

Tax identification code:                 B/83417089

Registered office:                       Juan Bravo 39, Madrid, Spain

Date and place of formation:             1 October 2002 - Madrid, Spain

                                       21
<PAGE>

Directors:                               Gemma Angela Jimenez de las Heras

                                         Ricardo Mateos Garcia

                                         Both are joint and several directors

Secretary:                               N/A

Accounting reference date:               31 December

Auditors:                                N/A

Capital:                                 E 3,006

Participations:                          600

Stake held by the Seller's Group:        100%

8.        RESONANCIA NUCLEAR MAGNETICA SANTA TERESA, S.L.

Mercantile Registry details:             Volume 920, Folio 77, Page number
                                         C-2,688

                                         Mercantile Registry of La Coruna

Tax identification code:                 B/15329535

Registered office:                       Penarredonda 4, La Coruna, Spain

Date and place of formation:             6 April 1991 - La Coruna, Spain

Directors:                               Gabriel Masfurroll Lacambra (Chairman)

                                         Juan Pedro Calvo del Molino

                                         Soledad Jorge Nebot

                                         United Surgical Partners Europe, S.L.
                                         (represented by Juan Ramon Arias
                                         Irigoyen) (Managing Director)

                                         Monica Cintado Scokin

Secretary:                               Carlos Peman Cubillo (Secretary)

                                         Jose Luis Vazquez Travieso (Vice
                                         Secretary)

Accounting reference date:               31 December

Auditors:                                N/A

Capital:                                 E 480,809.68

Participations:                          8,000

Stake held by the Seller's Group:        90.69%

9.        UNITED SURGICAL PARTNERS BARCELONA, S.L.

                                       22
<PAGE>

Mercantile Registry details:             Volume 29,961, Folio 53, Page number
                                         B-144,030

                                         Mercantile Registry of Barcelona

Tax identification code:                 B/61055992

Registered office:                       Avenida Diagonal 652, Building C,
                                         6 degrees 2nd, Barcelona, Spain

Date and place of formation:             14 February 1996 - Barcelona, Spain

Directors:                               Gabriel Masfurroll Lacambra (Chairman)

                                         Donald E. Steen

                                         William H. Wilcox

                                         Juan Pedro Calvo del Molino

                                         Monica Cintado Scokin

                                         Soledad Jorge Nebot

Secretary:                               Gemma Jimenez de las Heras

Accounting reference date:               31 December

Auditors:                                N/A

Capital:                                 E 5,241,912

Participations:                          873,652

Stake held by the Seller's Group:        99,99%

10.       UNITED SURGICAL PARTNERS COSTA DEL SOL, S.L.

Mercantile Registry details:             Volume 3,407, Folio 163, Page number
                                         MA-66,143

                                         Mercantile Registry of Malaga

Tax identification code:                 B/83574921

Registered office:                       Avenida Severo Ochoa 22, Marbella,
                                         Malaga, Spain

Date and place of formation:             25 Feburary 2003 - Sevilla, Spain

Directors:                               United Surgical Partners Europe, S.L.
                                         (represented by Soledad Jorge Nebot)

                                         (Managing Director)

                                         Laura Pellise Urquiza (Vice Chairman)

                                         Gabriel Masfurroll Lacambra (Chairman)

                                       23
<PAGE>

                                         Patricia Uson Casger

Secretary:                               Gemma Jimenez de las Heras (Secretary)

                                         Maria Cura Blasi (Vice Secretary)

Accounting reference date:               31 December

Auditors:                                N/A

Capital:                                 E 503,006

Participations:                          503,006

Stake held by the Seller's Group:        100%

11.       UNITED SURGICAL PARTNERS DEXEUS CENTRO DE SALUD DE LA MUJER, S.L.
          (SOCIEDAD UNIPERSONAL)

Mercantile Registry details:             Volume 2,024, Folio 143, Page number
                                         MU-43,516

                                         Mercantile Registry of Murcia

Tax identification code:                 B/83650135

Registered office:                       Avenida Juan de Borbon s/n corner with
                                         Abenai, Building "Parque Mediterraneo",
                                         Murcia, Spain

Date and place of formation:             9 May 2003 - Barcelona, Spain

Directors:                               Gabriel Masfurroll Lacambra (Chairman)

                                         Soledad Jorge Nebot (Vice Chairman)

                                         United Surgical Partners Europe, S.L.
                                         (represented by Juan Ramon Arias
                                         Irigoyen) (Managing Director)

                                         Pedro Hernandez Jimenez

Secretary:                               Juan Pedro Calvo del Molino (Secretary)

                                         Gemma Jimenez de las Heras (Vice
                                         Secretary)

Accounting reference date:               31 December

Auditors:                                N/A

Capital:                                 E 3,006

Participations:                          3,006

Stake held by the Seller's Group:        100%

                                       24
<PAGE>

12.       UNITED SURGICAL PARTNERS HOSPITAL DE MARBELLA, S.L. (SOCIEDAD
          UNIPERSONAL)

Mercantile Registry details:             Volume 3,407, Folio 175, Page number
                                         MA-66,144

                                         Mercantile Registry of Malaga

Tax identification code:                 B/83574905

Registered office:                       Avenida Severo Ochoa 22, Marbella,
                                         Malaga, Spain

Date and place of formation:             25 February 2003 - Barcelona, Spain

Directors:                               United Surgical Partners Europe, S.L.
                                         (represented by Pedro Ellauri Sanchez)

                                         Gabriel Masfurroll Lacambra (Chairman)

                                         Juan Ramon Arias Irigoyen (Vice
                                         Chairman)

                                         Manuel Lopez Otero

                                         Monica Cintado Scokin

Secretary:                               Juan Pedro Calvo del Molino (Secretary)

                                         Elena Cuadrado Gomez (Vice Secretary)

Accounting reference date:               31 December

Auditors:                                N/A

Capital:                                 E 3,006

Participations:                          3,006

Stake held by the Seller's Group:        100%

13.       UNITED SURGICAL PARTNERS MADRID, S.L.

Mercantile Registry details:             Volume 14,763, Section 8, Page number
                                         M-245,184

                                         Mercantile Registry of Madrid

Tax identification code:                 B/82452236

Registered office:                       Juan Bravo 39, Madrid, Spain

Date and place of formation:             24 September 1999 - Madrid, Spain

Directors:                               Gabriel Masfuroll Lacambra (Chairman)

                                         Soledad Jorge Nebot (Vice Chairman)

                                         Monica Cintado Scokin

                                         Juan Ramon Arias Irigoyen

                                       25
<PAGE>

                                         United Surgical Partners Europe, S.L.
                                         (represented by Jose Antonio Arqued
                                         Fernandez) (Managing Director)

Secretary:                               Maria Garcia Rubio de Casas (Secretary)

                                         Carlos Peman Cubillo (Vice Secretary)

Accounting reference date:               31 December

Auditors:                                KPMG Auditores, S.L.

Capital:                                 E 1,777,313

Participations:                          1,777,313

Stake held by the Seller's Group:        93.34%

14.       U.S.P. DERMOESTETICA, S.L.

Mercantile Registry details:             Volume 13,942, Section 8, Page number
                                         M-228,397

                                         Mercantile Registry of Madrid

Tax identification code:                 B/82260829

Registered office:                       Paseo Juan XXIII 40, 2nd Floor, Madrid,
                                         Spain

Date and place of formation:             24 February 1999 - Madrid, Spain

Directors:                               United Surgical Partners Europe,
                                         S.L. (represented by Juan Pedro
                                         Calvo del Molino) (Managing Director)

                                         Soledad Jorge Nebot (Chairman)

                                         Monica Cintado Scokin

                                         Carlos Alberich Herrera

Secretary:                               Angel Ramon Salas Martin (Secretary)

                                         Gemma Jimenez de las Heras (Vice
                                         Secretary)

Accounting reference date:               31 December

Auditors:                                KPMG auditores, S.L.

Capital:                                 E 6.600

Participations:                          1,100

Stake held by the Seller's Group:        100%

                                       26
<PAGE>

15.       USP HOSPITAL SAN CARLOS MURCIA, S.L. (SOCIEDAD UNIPERSONAL)

Mercantile Registry details:             Volume 1,946, Folio 126, Page number
                                         MU-42,798

                                         Mercantile Registry of Murcia

Tax identification code:                 B/82452558

Registered office:                       Avenida Miguel Hernandez 12, Murcia,
                                         Spain

Date and place of formation:             13 October 1999 - Madrid, Spain

Directors:                               Gabriel Masfurroll Lacambra (Chairman)

                                         Soledad Jorge Nebot (Vice Chairman)

                                         United Surgical Partners Europe, S.L.
                                         (represented by Soledad Jorge Nebot)

                                         Juan Ramon Arias Irigoyen

                                         Juan Pedro Calvo del Molino

                                         Monica Cintado Scokin

                                         Pedro Hernandez Jimenez

Secretary:                               Juan Pedro Calvo del Molino (Secretary)

                                         Gemma Jimenez de las Heras (Vice
                                         Secretary)

Accounting reference date:               31 December

Auditors:                                KPMG auditores, S.L.

Capital:                                 E 2,253,006

Participations:                          2.253,006

Stake held by the Seller's Group:        100%

16.       USP INSTITUTO DEXEUS, S.A.

Mercantile Registry details:             Volume 32,446, Folio 107, Page number
                                         B-18459

                                         Mercantile Registry of Barcelona

Tax identification code:                 A/08241572

Registered office:                       Paseo Bonanova 67-69, Barcelona, Spain

Date and place of formation:             16 October 1969 - Barcelona, Spain

Directors:                               Gabriel Masfurroll Lacambra (Chairman)

                                         Juan Ramon Arias Irigoyen

                                         United Surgical Partners Europe, S.L.

                                       27
<PAGE>

                                         (represented by Edurado Serrat Bertran)
                                         (Managing Director)

                                         Jose Maria Villarrubias Guillament

                                         Consultorio Dexeus, S.A. (represented
                                         by Pere N. Barri Raque)

                                         Donald E. Steen

                                         Monica Cintado Scokin

                                         Soledad Jorge Nebot

                                         Joan Sau Giralt

Secretary:                               Juan Pedro Calvo del Molino (Secretary)

                                         Gemma Jimenez de las Heras
                                         (Vice-Secretary)

Accounting reference date:               31 December

Auditors:                                KPMG Auditores, S.L.

Capital:                                 E 3,131,210

Shares:                                  52,100

Stake held by the Seller's Group:        79,06%

17.       USP OFTALMOLOGIA GALICIA, S.L. (SOCIEDAD UNIPERSONAL)

Mercantile Registry details:             Volume 2,776, folio 210, Page number
                                         C-32,131

                                         Mercantile Registry of La Coruna

Tax identification code:                 B/83707901

Registered office:                       Paseo Maritimo 1, La Coruna, Spain

Date and place of formation:             11 July 2003 - Madrid, Spain

Directors:                               Instituto Policlinico Santa Teresa,
                                         S.A. (represented by Soledad Jorge
                                         Nebot) (Managing Director)

                                         Gabriel Masfurroll Lacambra (Chairman)

                                         Juan Ramon Arias Irigoyen (Vice
                                         Chairman)

                                         Nicolas Pombo Liria

Secretary:                               Gemma Jimenez de las Heras (Secretary)

                                         Ana Barrera Lopez (Vice Secretary)

Accounting reference date:               31 December

                                       28
<PAGE>

Auditors:                                N/A

Capital:                                 E 257,103

Participations:                          257,103

Stake held by the Seller's Group:        91.14%

                                       29
<PAGE>

                          PART 2 - ASSOCIATED COMPANIES

1.        CENTRO DE PATOLOGIA CELULAR Y DIAGNOSTICO PRENATAL, S.A.

Mercantile Registry details:             Volume 22,242, Folio 48, Page number
                                         B-35,522

                                         Mercantile Registry of Barcelona

Tax identification code:                 A/58494378

Registered office:                       Londres 6, Entresuelo, Barcelona, Spain

Date and place of formation:             23 December 1987 - Barcelona, Spain

Directors:                               Jose Maria Carrera Macia (Chairman)

                                         Miguel Pardo Gonzalez

                                         Francese de P. Mata Enrich (Managing
                                         Director)

                                         Eduardo Serrat Bertran

                                         Juan Sabater Tobella

Secretary:                               Miguel Pardo Gonzalez

Capital:                                 E 61,422.2

Shares:                                  1,022

Stake held by the Seller's Group:        9.98%

2.        DENSITOMETRIA OSEA COMPUTERIZADA, S.L.

Mercantile Registry details:             Volume 24,094, Folio 65, Page number
                                         B-64,203

                                         Mercantile Registry of Barcelona

Tax identification code:                 B/58471475

Registered office:                       Avenida Diagonal 652, Building c, 6(0),
                                         2nd Floor, Barcelona, Spain

Date and place of formation:             4 December 1987 - Barcelona, Spain

Details of notarial deed of formation:

Directors:                               Consultorio Dexeus, S.A. (represented
                                         by Daniel Martinez Marroquin) (Sole
                                         Director)

Secretary:                               N/A

Capital:                                 E 28,547.50

Participations:                          475

Stake held by the Seller's Group:        26.74%

                                       30
<PAGE>

3.        IMAGENES DIAGNOSTICAS, S.A.

Mercantile Registry details:             Volume 32,446, Folio 148, Page number
                                         B-22,860

                                         Mercantile Registry of Barcelona

Tax identification code:                 A/08627858

Registered office:                       Paseo Bonanova 67, 2nd Floor,
                                         Barcelona, Spain

Date and place of formation:             8 February 1980 - Barcelona, Spain

Directors:                               Consultorio Dexeus, S.A. (represented
                                         by Daniel Martinez Marroquin) (Sole
                                         Director)

Secretary:                               N/A

Capital:                                 E 102,172.06

Shares:                                  1,700

Stake held by the Seller's Group:        13.18%

4.        ESTUDIOS FUNCIONALES, S.A.

Mercantile Registry details:             Volume 33,940, Folio 211, Page number
                                         B-17,465

                                         Mercantile Registry of Barcelona

Tax identification code:                 A/58174392

Registered office:                       Paseo Bonanova 89-91, Barcelona, Spain

Date and place of formation:             19 February 1986 - Barcelona, Spain

Directors:                               Consultorio Dexeus, S.A. (represented
                                         by Daniel Martinez Marroquin) (Sole
                                         Director)

Secretary:                               N/A

Capital:                                 E 75,125

Shares:                                  1,200

Stake held by the Seller's Group:        14.8%

5.        UNIDAD DE RECUPERACION DEL SUELO PELVICO, S.L.

Mercantile Registry details:             Volume 29,104, Folio 86, Page number
                                         B-149,401

                                       31
<PAGE>

                                         Mercantile Registry of Barcelona

Tax identification code:                 B/69907714

Registered office:                       Paseo Bonanova 67, 2 degrees,
                                         Barcelona, Spain

Date and place of formation:             18 July 1995 - Barcelona, Spain

Directors:                               Consultorio Dexeus, S.A. (represented
                                         by Daniel Martinez Marroquin) (Sole
                                         Director)

Secretary:                               N/A

Capital:                                 E 37,863

Participations:                          6,300

Stake held by the Seller's Group:        15%

                                       32
<PAGE>

                                   SCHEDULE 3

                               SELLER'S WARRANTIES

1.    GENERAL

1.1   DUE INCORPORATION AND CAPACITY

      The Seller and the Guarantor are corporations validly existing under the
      laws of England and Delaware, United State, respectively, with the
      requisite power and authority to enter into and perform, and have taken
      all necessary corporate action to authorise the execution and performance
      of, their obligations under this Agreement.

1.2   VALID OBLIGATIONS

      This Agreement constitutes valid and a binding obligation of the Seller.

1.3   FILINGS AND CONSENTS

      Other than as contemplated by this Agreement, no notices, reports or
      filings are required to be made by the Seller in connection with the
      transactions contemplated by this Agreement, nor are any consents,
      approvals, registrations, authorisations or permits required to be
      obtained by the Seller in connection with the execution and performance of
      this Agreement.

1.4   RECITALS

      The particulars relating to the Group Companies and Associated Companies
      set out in the recitals and the schedules to this Agreement are true and
      accurate and not misleading.

1.5   INCORPORATION AND CONDUCT OF BUSINESS

      Each Group Company a corporation validly existing under the laws of Spain
      with full power and authority to conduct its business in the ordinary
      course, and is not in breach of or fails to meet any material legal
      requirement that could prevent it to continue its business in the ordinary
      course, as it has been doing until now.

1.6   OWNERSHIP OF PARTICIPATIONS

      The Class A Participations and the Class B Participations constitute the
      whole of the capital of the Company.

      There is no option, right to acquire, mortgage, charge, pledge, lien or
      other form of security or encumbrance on, over or affecting any of the
      Participations and there is no agreement or commitment to give or create
      any of the foregoing, subject to clause 13.

      The Seller is entitled to transfer the ownership of the Participations on
      the terms set out in this Agreement and subject to clause 13.

1.7   SUBSIDIARIES AND ASSOCIATES

      The Seller is the indirect owner of the Transaction Companies in the
      percentages set out in the schedule headed "Subsidiaries and Associated
      Companies".

      Other than as set out in the schedule headed "The Subsidiaries and
      Associated Companies", no Group Company is the holder of, nor has agreed
      to acquire, any shares of any other company.

      None of the Group Companies is subject to compulsory dissolution.

                                       33
<PAGE>

1.8   ACCOUNTS

      The 31 December 2003 Accounts and the 30 June 2004 Accounts:

      (a)   have been prepared in accordance with Spanish GAAP;

      (b)   have been prepared on a consistent basis utilising the accounting
            policies of the Company for the preceding financial periods;

      (c)   make adequate provision for, or disclose, all liabilities of the
            Group Companies, whether actual or contingent; such liabilities are
            adequately recorded and valued in the Accounts, according to Spanish
            GAAP, consistently applied; and

      (d)   all material assets are correctly recorded and valued in the
            Accounts and appropriate provisions are made for all of them in
            accordance with the Group Companies accounting policies, valuation
            criteria and practices and under Spanish GAAP, consistently applied.

      The 31 December 2003 Accounts present the true and fair view ("imagen
      fiel") of the financial situation of the Group Companies (on a
      consolidated basis) and each of the Group Companies, their net worth
      position ("fondos propios") as at 31 December 2003 and the results of
      their operations for the period then ended;

      The 30 June 2004 Accounts present the true and fair view ("imagen fiel")
      of the financial situation of the Group Companies, their net worth
      position ("fondos propios") as at 30 June 2004 and the results of their
      operations for the period then ended on a consolidated basis.

1.9   POSITION SINCE THE ACCOUNTS DATE

      Since the Accounts Date and up to Completion:

      (a)   there has not occurred a material adverse change in the business,
            operations, assets or liabilities, or in the condition (financial,
            trading or otherwise) or profits of any of the Group Companies, or
            any other event or circumstance that may result in such a material
            adverse change which in any such case is incapable of being remedied
            or, if capable of being remedied, is not remedied by Completion;

      (b)   the business of the Group Companies has been carried on in the
            ordinary course in all material respects;

      (c)   no dividend or other distribution has been declared, paid or made by
            a Group Company;

      (d)   no share or loan capital has been issued or agreed to be issued by a
            Group Company;

      (e)   no disposal of, or agreement to dispose of, any material properties
            or assets of any Group Company has taken place or been agreed.

1.10  PROPERTIES AND MATERIAL ASSETS

      The Group Companies have sufficient legal title to use (i) the real estate
      properties in which they carry out their respective businesses and (ii)
      the movable assets that are material for the carrying out of their
      respective businesses.

      The properties and material assets of the Group Companies are free from
      liens, encumbrances, charges and third party rights save as disclosed in
      the Disclosure Letter.

                                       34
<PAGE>

1.11  EXISTING SUPPLIERS

      So far as the Seller is aware since the Accounts Date, no material
      supplier of the Group Companies has ceased or has notified the Seller or
      the Group Companies that it will cease supplying or that it will adversely
      and substantially alter the terms on which it supplies the Group
      Companies.

1.12  INTELLECTUAL PROPERTY RIGHTS ("DERECHOS DE PROPIEDAD INTELECTUAL E
      INDUSTRIAL")

      So far as the Seller is aware, no notice has been received by any Group
      Company claiming that it infringes any right in confidential information
      or other intellectual property right of any third party.

      All intellectual property rights used by each Group Company for the
      purpose of carrying on its business as currently carried on are vested
      solely and beneficially in or are licensed to a Group Company. In
      particular, the Company is the holder of all exploitation rights
      ("derechos de explotacion") over the AHM Software world-wide and for the
      whole term of their legal protection are owned within the Group Companies
      or, where this statement could be challenged because of the terms of the
      transfer deed of the AHM Software from Instituto Dexeus to the Company,
      the terms of such transfer deed are capable of being clarified or amended
      so that this Warranty would be true and accurate and not misleading. There
      are no licences over the AHM Software other than as set out in the
      Disclosure letter, and the AHM Software is internally maintained by
      employees of the Company within the scope of their contractual duties and
      under the instructions given by the Company.

      There is no outstanding infringement or formally notified infringement or,
      so far as the Seller is aware, the threat of any infringement of any
      intellectual property rights by a Group Company.

      So far as the Seller is aware, no Group Company has (except in the
      ordinary course of business, to its professional advisers, as required by
      law or any regulatory authority or subject to a confidentiality
      undertaking) disclosed to any person other than the Purchaser (and its
      professional advisers) any secret or confidential information relating to
      its business.

      No Group Company trades under any business name other than its corporate
      name.

1.13  CONTRACTS

      Save as disclosed in the Disclosure Letter, and so far as the Seller is
      aware, no Group Company is a party to any material contract (or has
      entered into any understanding or letter of intent for the entering into
      such contract) which:

      (a)   was entered into otherwise than in the ordinary course of trading;
            or

      (b)   is of a long-term nature (that is to say, incapable of performance
            in accordance with its terms within 12 months after the date on
            which it was entered into or undertaken); or

      (c)   involves the supply of goods the aggregate sales value of which will
            represent in excess of 10 per cent. of the turnover for the current
            financial year of the Group; or

      (d)   in any way restricts its freedom to carry on the whole or any
            material part of its business as it does at present; or

      (e)   has a change of control provision except as disclosed in the
            Disclosure Letter.

                                       35
<PAGE>

      So far as the Seller is aware, no Group Company has received notice that
      it is in default under any agreement, mortgage, charge or pledge which is
      material to the financial condition of the Group.

      There are no subsisting material contracts to which a Group Company is a
      party and in which any member of the Seller's Group has a material
      interest (other than, in the case of the Seller, its interest in the
      Participations).

      So far as the Seller is aware, no Group Company is nor has agreed to
      become a member of any partnership or other unincorporated association,
      joint venture or consortium (other than recognised trade associations),
      other than in respect of an Associated Company.

1.14  INDEBTEDNESS

      So far as the Seller is aware, no Group Company has received any notice to
      repay any borrowings or indebtedness under any agreements relating to any
      borrowing (or indebtedness in the nature of borrowing) which are repayable
      on demand; and no event of default has occurred and is outstanding under
      any agreement relating to any other borrowing or indebtedness in the
      nature of borrowing or other credit facility of a Group Company.

      So far as the Seller is aware, the total amount borrowed by each Group
      Company from its bankers does not exceed its overdraft and other
      facilities.

      So far as the Seller is aware, and except for intercompany loans to
      another Group Company, no Group Company has lent any money which is due to
      be repaid and, as at the date of this Agreement, has not been repaid or
      owns the benefit of any debt other than debts accrued in the ordinary
      course of its business.

1.15  LITIGATION

      Except as plaintiff in the collection of debts arising in the ordinary
      course of business and save as disclosed in the Disclosure Letter, no
      Group Company is a plaintiff or defendant in or otherwise a party to any
      material litigation, arbitration or administrative proceedings which are
      in progress nor, so far as the Seller is aware, have such proceedings been
      expressly threatened by or against any Group Company or any of its assets.

1.16  INSURANCES

      The Group Companies have taken out insurance coverage that is reasonable
      and customary for the type of activities they carry out any such insurance
      coverage is in full force and effect.

1.17  EMPLOYEES

      The Group Companies have complied in all material respects with all their
      respective labour obligations under the applicable law and in all material
      respects has paid salaries and remunerations as well as Social Security
      contributions as the same are due and/or customarily payable, save as
      disclosed in the Disclosure Letter. In accordance with Spanish GAAP, the
      Group Companies have established sufficient provision for the payment of
      all wages and Social Security amounts that have already accrued but which
      have not been paid and for which the voluntary period for their payment
      has not yet expired.

      Save as disclosed in the Disclosure Letter, and so far as the Seller is
      aware, the Group Companies do not have knowledge of any labour dispute or
      conflicts pending resolution.

      A descriptive chart of the employees of the Group Companies is attached as
      Schedule 16 identifying for each hospital average gross salary, seniority,
      age, and an indication of the professional standing of the personnel, the
      type of employment contract and the benefits

                                       36
<PAGE>

      in terms of cash remuneration, salary and of any other kind, including
      severance payments on termination of employment contracts and date of
      effectiveness of their agreements as well as any other relevant
      condition.] [Management to confirm the scope of this schedule.

2.    TAX WARRANTIES

      The Group Companies and have filed regularly and in due time all the Tax
      Returns, reports, data and accounting statements it is obliged to file in
      respect of these for all their Taxes and have paid the Tax due on time.
      All these documents were accurate, complete and correct when filed in all
      significant respects. In accordance with Spanish GAAP, the Group Companies
      have established sufficient provision for the payment of all taxes that
      have already accrued but which have not been paid and for which the
      voluntary period for their payment has not yet expired.

      The Group Companies have deducted or withheld from the recipients of
      payments, including employees, independent professionals, directors,
      agents, etc., the correct and precise amounts for all the relevant Tax
      periods in compliance with the applicable tax provisions, and has properly
      accounted for any Tax in this respect.

      So far as the Seller is aware, and save as disclosed in the Disclosure
      Letter, there is no Tax inspection of any of the Group Companies in
      progress or known.

      So far as the Seller is aware, the Group Companies have complied with any
      obligation to register for the purposes of VAT, goods and services tax,
      sale tax, business transfer tax, customs duties and similar Taxes.

      The Tax credit ("credito fiscal en cuota") arising from the aggregate
      available Tax losses of the Group Companies is Euro 5,882,000. The Group
      Companies keep all accounting documentation and of any other type, its
      supporting documents, including books and returns, corresponding to all
      years when they have recorded tax losses, even those that have prescribed.

3.    NO MATERIAL MISSTATEMENT OF INFORMATION

      So far as the Seller is aware, the information disclosed to the Purchaser
      during the Due Diligence and that is set out in this Agreement and its
      schedules in relation to the Group Companies is, in all material respects,
      true and accurate and not misleading and no material changes have occurred
      or are being negotiated in respect of such information.

      The Seller has no knowledge of any fact or circumstance that could impair
      the Group Companies to continue to operate in the manner they currently
      do. By way of exception, in this paragraph the Seller shall only be deemed
      to have knowledge if the fact or circumstance should have been known by a
      seller not acting with gross negligence or willful misconduct.

      The Seller has no knowledge of any information, facts or circumstances
      that could materially affect the Group Companies, their respective net
      worth ("patrimonios netos") or businesses that are not reflected in this
      Agreement and its Schedules and that, if they were known by a purchaser
      acting with the diligence of a prudent businessman ("ordenado
      comerciante") could make such purchaser not enter into this sale and
      purchase. All information about the Group Companies which might be
      relevant to a purchaser have been disclosed to the Purchaser in writing.
      By way of exception, in this paragraph the Seller shall only be deemed to
      have knowledge if the fact or circumstance should have been known by a
      seller not acting with gross negligence or willful misconduct.

      As far as the Seller is aware there is nothing in the Data Room Documents
      that should have been Disclosed but is not the subject of a specific
      disclosure in the Disclosure Letter or disclosed in the Vendor's Due
      Diligence.

                                       37
<PAGE>

                                   SCHEDULE 4

                            LIMITS ON WARRANTY CLAIMS

1.    ACKNOWLEDGEMENT

      The Purchaser acknowledges and agrees that:

      (a)   the Warranties are the only representations, warranties or other
            assurances of any kind given by or on behalf of the Seller or any
            member of the Seller's Group and on which the Purchaser may rely in
            entering into this Agreement;

      (b)   no other statement, promise or forecast made by or on behalf of the
            Seller or any member of the Seller's Group may form the basis of, or
            be pleaded in connection with, any claim by the Purchaser under or
            in connection with this Agreement; and

      (c)   at the time of entering into this Agreement, it is not aware of any
            matter or thing not Disclosed by the Seller which is inconsistent
            with the Warranties or constitutes a breach of any of them.

      This paragraph 1 shall be deemed to have been repeated by the Purchaser as
      at Completion.

2.    EXCLUSIONS

      The Seller shall not be liable in respect of a Warranty Claim to the
      extent that it relates to any liability or obligation on the part of a
      Group Company:

      (a)   to the extent that the Warranty Claim is attributable to any
            voluntary act, omission, transaction or arrangement carried out
            prior to Completion at the request of or with the consent of the
            Purchaser; or

      (b)   for which provision is made, or of which the payment or discharge is
            reflected, in the Accounts; or

      (c)   which would not have arisen but for a change in legislation or a
            change in the interpretation of legislation on the basis of case law
            made after Completion (whether relating to Taxation, the rate of
            Taxation or otherwise) or any amendment to or the withdrawal of any
            practice previously published by a Taxation Authority, in either
            case occurring after Completion, whether or not that change,
            amendment or withdrawal purports to be effective retrospectively in
            whole or in part; or

      (d)   which arises as a result of any change after Completion of the date
            to which the Company makes up its accounts or in the bases, methods
            or policies of accounting of the Company other than a change which
            is reported by the auditors for the time being of the Company to be
            necessary in their opinion because such bases, methods or policies
            of accounting as at the date of Completion are not in accordance
            with any published accounting practice or principle then current; or

      (e)   to the extent that the Warranty Claim is attributable to any act or
            omission of the Purchaser, the Purchaser's Group or any Group
            Company after Completion outside the ordinary course of the
            Company's business as it was operated up to Completion; or

                                       38
<PAGE>

      (f)   of which the Purchaser has been made aware in the Disclosure Letter
            or the Vendor's Due Diligence(1) (this is, that has been Disclosed
            by the Seller); or

      (g)   in respect of the information contained the Madrid, Barcelona, La
            Coruna, Murcia, Malaga, Sevilla and Alava Commercial Registries, and
            the Sevilla number 8, Barcelona number 8, La Coruna number 2, Madrid
            number 21, Vitoria number 2 and Marbella number 2 Land Registries as
            of 21 2004; or

      (h)   to the extent that either any Group Company, the Purchaser or any
            other member of the Purchaser's Group duly obtains the benefit of
            Relief in an accounting period after Completion for an expenditure,
            reserve or provision which was recognised in the Accounts; or

      (i)   which arises or is increased as a result of the failure or omission
            of any Group Company to make any valid claim, election, surrender or
            disclaimer, to give any valid notice or consent or to do any other
            thing under the provisions of any enactment or regulation relating
            to Taxation after Completion, the making, giving or doing of which
            was taken into account in computing the provisions for Taxation in
            the Accounts; or

      (j)   which arises or is increased as a result of any claim, election,
            surrender or disclaimer made or notice or consent given after
            Completion by any Group Company or any member of the Purchaser's
            Group under the provisions of any enactment or regulation relating
            to Taxation other than any claim, election, surrender, disclaimer,
            notice or consent assumed to have been made, given or done in
            computing the amount of any allowance, provision or reserve in the
            Accounts; or

      (k)   to the extent that the matter giving rise to the Warranty Claim is a
            liability of the Company for Tax arising because the assets of any
            Group Company are more than, or its liabilities are less than, those
            taken into account in computing the provision for Tax in the
            Accounts. This limitation on the Warranty Claim is extended
            exclusively up to the amount for which the Group Company's assets
            are more than, or its liabilities are less than, those taken into
            account in computing the provision for Tax in the Accounts, and only
            applies when the relevant assets or liabilities were not taken into
            account in computing the provision due to a mistake (although the
            Seller has no knowledge of such a circumstance); or

      (l)   if any Group Company or the tax consolidation group has not utilised
            tax losses ("bases imponibles negativas") available to any of them
            at Completion, to the extent that the additional taxable income of
            which the Warranty Claim would be based can be offset against such
            tax losses; or

      (m)   which would not have arisen but for a cessation, or any change in
            the nature or conduct, of any trade carried on by any Group Company
            at Completion, being a cessation or change occurring after
            Completion.

      The Purchaser irrevocably waives any right it may have to claim Damages
      and/or rescission and/or any other remedy available to it or any Group
      Company in law in respect of any breach by the Seller of any Warranty or
      this Agreement arising whether in contract or in tort ("responsabilidad
      extracontractual") unless it establishes gross negligence ("culpa grave")
      or wilful misconduct ("dolo") on the part of the Seller.

      The Purchaser undertakes not to bring any action against any director of
      any Group Company who holds or has held such position as at the date of
      Completion, other than as a result of gross negligence or wilful
      misconduct.

-----------
(1)

                                       39
<PAGE>

3.    FINANCIAL LIMITS

      The liability of the Seller under or in respect of the Warranties and this
      Agreement shall be limited as follows:

      (a)   there shall be disregarded for all purposes any breach of the
            Warranties in respect of which the amount of the Damages to which
            the Purchaser would otherwise be entitled is less than Euro 60,000;

      (b)   the Purchaser shall not be entitled to recover any Damages in
            respect of any breach or breaches of the Warranties or this
            Agreement except to the extent that the amount of Damages in respect
            of such breach or breaches exceeds in aggregate the sum of Euro
            300,000, in which case the Purchaser shall only be entitled to
            recover Damages for such excess; and

      (c)   the maximum aggregate liability of the Seller in respect of all and
            any Warranty Claims and all and any claims under this Agreement
            shall not exceed an amount of seventeen million four hundred and
            eighty thousand seven hundred and sixty nine (17,480,769) Euro.

4.    TIME LIMITS

      The liability of the Seller in respect of the Warranties shall terminate:

      (a)   on the expiry of the legal statute of limitation in respect of those
            matters set out in section 2 (Tax Warranties), and section 1.17
            (Employment) of the schedule headed "Seller's Warranties"; and

      (b)   on the expiry of eighteen (18) months since Completion in respect of
            all other matters contained in that schedule,

      except in respect of any Warranty Claim of which notice is given to the
      Seller before the relevant date. The liability of the Seller in respect of
      any Warranty Claim shall in any event terminate if proceedings in respect
      of it have not been commenced within 12 months of service of notice of
      that Warranty Claim; proceedings for these purposes means arbitral,
      judicial or administrative proceedings, ongoing negotiations in respect of
      a claim or an extra-judicial settlement process provided, however, that
      this time limit shall not apply to Warranty Claims that are not Third
      Party Claims or to Third Party Claims that refer to Tax, labour or Social
      Security matters.

5.    NOTICE OF WARRANTY CLAIMS

      If the Purchaser or any of the Group Companies becomes aware of a matter
      which is likely to give rise to a Warranty Claim, the Seller shall not be
      liable in respect of it unless the Purchaser has given notice of the
      relevant facts to the Seller as soon as reasonably practicable after
      becoming aware of those facts and in any event within 30 days of becoming
      aware of those facts.

6.    CONDUCT OF THIRD PARTY CLAIMS

      If a Warranty Claim arises as a result of, or in connection with, a
      liability or alleged liability to a third party (a Third Party Claim),
      then:

      (a)   the Purchaser shall procure the relevant Group Company to make
            available to the Seller such persons and all such information as the
            Seller may reasonably require for assessing, contesting, appealing
            or compromising the Third Party Claim;

      (b)   the Purchaser shall procure the relevant Group Company, to the
            extent reasonably practicable, to consult with the Seller in
            relation to the conduct of any appeal,

                                       40
<PAGE>

            dispute, compromise or defence of the Third Party Claim and not to
            compromise, admit liabilities in respect of, or settle the Third
            Party Claim without the Seller's prior written consent; and

      (c)   the Purchaser shall, and shall procure that the relevant Group
            Company shall, keep the Seller informed of the progress of the Third
            Party Claim.

7.    RECOVERY FROM THIRD PARTIES

      This paragraph applies if:

      (a)   the Seller makes a payment (excluding any interest on a late
            payment) in respect of a Warranty Claim (the Damages Payment); and

      (b)   any Group Company or the Purchaser receives any sum which would not
            have been received but for the circumstance which gave rise to that
            Warranty Claim (the Third Party Sum); and

      (c)   the receipt of the Third Party Sum was not taken into account in
            calculating the Damages Payment; and

      (d)   the aggregate of the Third Party Sum and the Damages Payment exceeds
            the amount required to compensate the Purchaser in full for the loss
            or liability which gave rise to the Warranty Claim in question, such
            excess being the Excess Recovery.

      If this paragraph applies, the Purchaser shall, promptly on receipt of the
      Third Party Sum by it or the relevant Group Company, repay to the Seller
      an amount equal to the lower of (i) the Excess Recovery and (ii) the
      Damages Payment, after deducting (in either case) all costs incurred by
      the Purchaser or the relevant Group Company in recovering the Third Party
      Sum and any taxation payable by the Purchaser or any Group Company by
      virtue of its receipt.

8.    INSURANCE

      Without prejudice to the Purchaser's duty to mitigate any loss in respect
      of any breach of the Warranties, if in respect of any matter which would
      otherwise give rise to a breach of the Warranties the Purchaser, the
      Purchaser's Group or any of the Group Companies is entitled to claim under
      any policy of insurance (or would have been so entitled had it maintained
      in force its insurance cover current at Completion), the amount of
      insurance monies to which that the Purchaser, the Purchaser's Group or any
      Group Company is or would have been entitled shall reduce pro tanto or
      extinguish the claim for breach of the Warranties.

9.    RESCISSION

      Subject to satisfaction of the terms for Completion under 5 above, the
      Purchaser shall not be entitled to rescind or terminate this Agreement
      after Completion in any circumstances.

                                       41
<PAGE>

                                   SCHEDULE 5

                                    ACCOUNTS

                        PART A - COMPLETION BALANCE SHEET

This schedule describes the procedure for the preparation of the Completion
Balance Sheet exclusively for the purposes of clauses 6 and 7 of the Agreement.

1.    As soon as reasonably practicable and by no later than ninety (90)
      calendar days following the date of Completion, the Seller shall be
      entitled to procure that the Company prepares and delivers to the Seller
      and the Purchaser a consolidated balance sheet of the Group Companies as
      of the last day of the month preceding the date of Completion (the Draft
      Completion Balance Sheet), except in the case that either Party or the
      Accountant believe that there may be significant differences or variations
      in some of the items of the Draft Completion Balance Sheet attributable to
      the month in which Completion takes place, in which case the Draft
      Completion Balance Sheet shall be prepared as of the date of Completion.
      The Draft Completion Balance Sheet will be prepared in the form and
      include the items shown at part B of this schedule and in accordance with
      the following:

      (a)   The specific policies set out in part C of this schedule;

      (b)   To the extent not covered by paragraph (a), the same accounting
            policies, principles, practices, evaluation rules and procedures,
            methods and bases adopted by the Company in the preparation of the
            Accounts; and

      (c)   To the extent not covered by paragraphs (a) and (b), Spanish GAAP in
            force at the Accounts Date, which shall prevail in case of
            discrepancy with (a) and /or (b) above.

2.    Within sixty (60) calendar days of delivery to the Purchaser of the Draft
      Completion Balance Sheet, the Purchaser and the Seller shall notify the
      other Party in writing of any item or items it wishes to dispute together
      with the reasons for such dispute and a list of proposed adjustments. An
      adjustment may only be proposed if it exceeds fifty thousand (50,000)
      Euro. If, by the expiry of such 60-day period, no such notice is received
      by either the Seller or either Party has notified the other Party that
      there are no items it wishes to dispute, the Draft Completion Balance
      Sheet shall constitute the Completion Balance Sheet for the purposes of
      this Agreement.

3.    If notice is received by the Seller or the Purchaser under paragraph 1.2
      of Part A of this schedule that there are items in dispute, the Seller and
      the Purchaser shall attempt to agree in writing the item or items disputed
      them. If such item or items is or are not agreed in writing between the
      Seller and the Purchaser within twenty-eight (28) calendar days of the
      delivery to the Purchaser of the Draft Completion Balance Sheet, the item
      or items in dispute shall be determined by Ernst & Young (the
      Accountants). Should Ernst & Young refuse to accept their appointment or
      fail to issue a decision within the prescribed time, the Accountants shall
      be an independent firm of accountants to be designated on application of
      any of the Parties to the "Instituto de Auditores y Censores Jurados de
      Cuentas de Espana" (IACJC), unless the Parties agree otherwise. The
      following instructions shall be provided to the IACJC in order to appoint
      the Accountants in accordance with this paragraph:

      (a)   it shall not be one of the firms who has advised the Parties in this
            transaction nor any other which at IACJC's sole discretion may have
            a conflict of interest with the Seller or the Purchaser; and

      (b)   it shall be an international firm ranking amongst the first eight
            (8) in terms of turnover in Spain in any of the last two years.

                                       42
<PAGE>

4.    Should the Accountants designated by the IACJC refuse to accept their
      appointment or fail to issue a decision within the prescribed time, any of
      the Parties may submit a new request to the IACJC as provided in this
      paragraph for the appointment of a new Accountant following, if feasible,
      the same criteria and disregarding the firms who have either refused to
      act or failed to reach a decision. If it is not possible for any
      Accountants to fulfil the aforesaid task within six (6) months from the
      date on which the relevant Party notified the other of the disputed item,
      any Party shall be entitled to initiate arbitrations proceedings under
      clause 20.2 for the final determination of the items in dispute.

5.    The Draft Completion Balance Sheet, adjusted to reflect the item or items
      as agreed between the Seller and the Purchaser in writing in accordance
      with paragraph 1.3 of Part A of this Schedule or as determined by the
      Accountants appointed under this schedule, shall constitute the Completion
      Balance Sheet for the purposes of this Agreement. The date on which the
      Completion Balance Sheet is finally determined by the Accountants, the
      Parties or otherwise under this schedule shall be the Determination Date.

6.    The Accountants shall act on the following basis:

      (a)   the Accountants shall act as experts and not as arbitrators and
            their decision shall be final and binding on the Parties;

      (b)   the item or items in dispute shall be notified to the Accountants in
            writing by the Seller and/or the Purchaser within fourteen (14)
            calendar days of the Accountants' appointment should be after expiry
            of the term of 1.3 above assuming that E&Y has already accepted
            appointment;

      (c)   their terms of reference shall be to determine the amount of the
            item or items in dispute (taking into account the provisions of this
            Agreement relating to the form and content of the Completion Balance
            Sheet and calculation of Completion Price) within forty-five (45)
            calendar days of receipt of notice pursuant to paragraph (b) of this
            paragraph;

      (d)   the Accountants shall decide the procedure to be followed in the
            determination;

      (e)   the Seller and the Purchaser shall each provide (and to the extent
            that they are reasonably able shall procure that their respective
            accountants and the Purchaser shall procure that the Company
            provides) the Accountants promptly with all information which they
            reasonably require and the Accountants shall be entitled (to the
            extent that they consider it appropriate) to base their opinion on
            such information and on the accounting and other records of the
            Company;

      (f)   the costs of the determination, including fees and expenses of the
            Accountants shall be borne equally as between the Seller on the one
            hand and the Purchaser on the other hand.

7.    The Seller and the Purchaser and their respective advisors shall provide
      each other with all information, assistance and access to books and
      records of account, documents, files and papers and information stored
      electronically which they reasonably require for the purposes of Part A of
      this Schedule. The Purchaser shall and shall procure that the Company and
      its advisors shall provide the Seller and its advisors with all
      information, assistance and access to books and records of account,
      documents, files, papers and information stored electronically which they
      may reasonably require for the purposes of Part A of this Schedule.

                                       43
<PAGE>

                        PART B - REFERENCE BALANCE SHEET

CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>
                000E                               30.6.2004
-------------------------------------              ---------
<S>                                                <C>
Start up costs                                          788
Gross intangible assets (excl.
  goodwill and start-up costs)                       18,972
Net intangible assets                                23,752
Gross tangible assets                               145,563
Net tangible assets                                  82,722
Financial assets                                      6,028
                                                    -------
Fixed assets                                        113,289
Goodwill on consolidation                            21,568
Deferred costs                                       31,600
Uncalled share capital
Inventories                                           2,986
Debtors                                              32,796
     VAT Marbella                                     1,982
Restricted cash on acquisitions                         180
Other restricted cash                                 1,954
Cash and bank                                         1,990
Short term investments                                   26
Prepayments                                             868
                                                    -------
Current assets                                       40,801
                                                    -------
Total assets                                        207,258
                                                    =======
Shareholder' equity                                  49,390
Minority interests                                    4,930
Negative goodwill                                     1,765
Deferred revenue                                      5,863
Provisions for risks                                    829
    Marbella retirement benefits                        184
    Other provisions for riks Financial                 645
Bank debt                                             9,481
Group loans                                          43,684
Lease creditors                                      46,557
Non-financial
Group trade creditors                                   895
Deferred tax                                          7,382
Other long term creditors                             1,945
                                                    -------
Long term liabilities                               109,943
Bank debt                                             5,890
Lease creditors                                       1,992
Trade creditors                                      15,265
Fixed asset suppliers                                 3,222
Creditors for acquisitions                            2,425
Other creditors                                       5,743
Deferred tax                                            750
    Other                                             4,993
                                                    -------
Current liabilities                                  34,537
                                                    -------
Total equity and liabilities                        207,259
                                                    =======
</TABLE>

                                       44
<PAGE>

CONSOLIDATED PROFIT & LOSS ACCOUNT

<TABLE>
<CAPTION>
             000E                                          S1 2004
------------------------------                             --------
<S>                                                        <C>
Patient revenue                                             59,933
Other revenue                                                1,250
Allowances                                                    (111)
                                                           -------
NET REVENUES                                                61,073
Operating expenses                                         (46,861)
                                                           -------
SITE EBITDAR                                                14,211
Operating rents & leases                                    (1,617)
                                                           -------
SITE EBITDA                                                 12,594
Overheads head-offices                                      (1,917)
                                                           -------
EBITDA                                                      10,676
D&A                                                         (5,080)
                                                           -------
EBIT                                                         5,596
Financial result                                            (3,116)
Extraordinary result                                             1
                                                           -------
EBT                                                          2,482
CIT                                                            139
Minority sharehold.                                           (267)
                                                           -------
PROFIT / (LOSS) FOR THE PERIOD                               2,354
                                                           =======
</TABLE>

                                       45
<PAGE>

 PART C - SPECIFIC POLICIES FOR THE PREPARATION OF THE COMPLETION BALANCE SHEET

1.    Subject to Schedule 6 "Completion Balance Sheet" Part A, clause 1.1, the
      Completion Balance Sheet shall:

      (a)   be prepared as if the period beginning with the opening of business
            on 1 January 2004 and ending as at the close of the business on the
            Completion date ("Completion Period") was a financial year of the
            Group headed by the Company (together with the appropriate
            apportionment of income and expenditure);

      (b)   be prepared on a consolidated basis based on the books and records
            of each company member of the Group headed by the Company and
            considering the appropriate consolidation adjustments;

      (c)   be prepared on the basis as a going concern for each company members
            of the Group headed by the Company and excluding any effect of the
            change of control or ownership of the Company contemplated by this
            Agreement;

      (d)   be prepared following the same classification criteria, as set out
            in the Reference Balance Sheet included in Part B of this Schedule
            6;

      (e)   to the extent not covered by the following clause 2. of this Part C,
            be prepared in accordance with the same accounting principles,
            policies, treatments, evaluation rules and procedures, methods and
            bases adopted by the Group headed by the Company in the preparation
            of the "Accounts" (defined as consolidated audited statutory
            accounts at 31 December 2003).

2.    In the preparation of the Completion Balance Sheet the following specific
      accounting policies shall be applied:

      (a)   The goodwill arisen from acquisitions shall be allocated across the
            tangible fixed assets following the same methods and original
            amounts that were applied in the preparation of the Accounts.
            Goodwill not allocated shall be amortised in a straight-line basis
            in 20 years.

      (b)   Tangible fixed assets shall be valued at cost, which comprises the
            original cost in the company which purchased the asset, plus legal
            revaluations in accordance with Spanish laws and the accounting
            allocation of goodwill (consolidation adjustment) as mentioned in
            2.a) above. Tangible fixed assets are depreciated on a straight-line
            basis over their estimated useful lives, which shall be the same
            applied by each company member of the Group headed by the Company at
            31 December 2003.

      (c)   No provision shall be recorded for depreciation or impairment of
            fixed assets. No write offs of fixed assets shall be recorded.

      (d)   The accounting policy in connection with leases, including the
            classification criterion between capital leases and operating leases
            and the calculation of the Deferred expenses shall follow the same
            criteria and original amounts adopted in the preparation of the
            Accounts.

      (e)   Debtor and creditor balances in foreign currency shall be valued at
            official rates at the Completion date. Unrealised losses arising
            shall be charged directly to the profit and loss account whereas
            unrealised gains shall be credited to deferred revenue on the
            balance sheet.

      (f)   Retirement benefits in accordance with collective wage agreements in
            certain centres shall be provided for in the Completion Balance
            Sheet, following the same criterion and basis of estimate as those
            used at the Accounts date.

                                       46
<PAGE>

      (g)   Bad debt provisions and Inventory values shall be calculated
            following the same policies and basis of estimate as those used by
            each company member of the Group headed by the Company at the
            Accounts date.

      (h)   Subject to any other sub-paragraphs of this clause 2, where a
            provision for risks was made in the 2003 audited consolidated
            statutory accounts in relation to any matter o series of matters, no
            increase in that provision shall be made.

      (i)   No provision shall be recorded in respect of or relating to the
            following:

            (i)   transfer taxes levied in connection with San Camilo shares
                  purchase;

            (ii)  any other tax, legal or labour exposures;

            (iii) any reorganisation, redundancy, dismissal or closure;

            (iv)  Group acquisition and/or financing restructuring costs;

            (v)   post balance sheet events occurring after the delivery of the
                  draft Completion Balance Sheet.

      (j)   The corporate income tax for the Completion period shall be
            calculated as though the Completion date was the last day of the
            current accounting period and following the same policies and
            treatments used at the Accounts date.

      (k)   No tax credit in connection with prior years' tax carry forward
            losses shall be recorded.

      In this Schedule, where the word "provision" is used in the context of the
      Completion Balance Sheet, that shall be deemed to include any other
      accrual, charge, write-off or adjustment which would have an equivalent
      effect on the value of the assets and liabilities.

                                       47
<PAGE>

                            PART D - COMPLETION PRICE

      For the purposes of clause 7, the Completion Price shall be calculated on
      the Determination Date in accordance with the terms of this schedule.

      The Completion Price will be calculated in accordance with the following
      formula:

              COMPLETION PRICE = P + 97% [-NDA + WCA + CEA + OALA]

      Where:

            P:     the Price, as set out in clause 6.1;

            NDA:   the Net Debt Adjustment;

            WCA:   the Working Capital Adjustment;

            CEA:   the Capital Expenditure Adjustment; and

            OALA:  the Other Assets and Liabilities Adjustment

      For the purposes of the above formula, the following definitions will be
      used:

OPENING NET DEBT

It means Euro seventy eight five hundred and eighty (78,580) thousand, being the
net debt at 30 June 2004 as per the Reference Balance Sheet, including the Items
detailed in the Balance Sheet Items for the Completion Price Adjustment in Part
E of this schedule:

-     Bank debt, short term and long term; plus

-     Short term and long term lease finance creditors, minus

-     Deferred expenses (interest) on leases; plus

-     Short term and long term debt with Group Companies; plus

-     Short term and long term debt with fixed assets suppliers; plus

-     Short term and long term debt in connection with acquisitions of
      companies; minus

-     Restricted cash on acquisitions (under "Fixed-term deposits"); minus

-     Other restricted cash on acquisitions (under "Short-term guarantee
      deposits"); plus

-     Provisions for retirement benefits; minus

-     Cash and banks (excluding restricted cash previously considered); minus

-     Short-term financial investments (excluding restricted investments
      previously considered).

                                       48
<PAGE>

CLOSING NET DEBT

It means the net debt at the date of Completion as per the Completion Balance
Sheet, including the items consistent with the Balance Sheet Items for the
Completion Price Adjustment in Part E of this schedule:

-     Bank debt, short term and long term; plus

-     Short term and long term lease finance creditors, minus

-     Deferred expenses (interest) on leases; plus

-     Short term and long term debt with Group Companies; plus

-     Short term and long term debt with fixed assets suppliers; plus

-     Short term and long term debt in connection with acquisitions of
      companies; minus

-     Restricted cash on acquisitions (under "Fixed-term deposits"); minus

-     Other restricted cash on acquisitions (under "Short-term guarantee
      deposits"); plus

-     Provisions for retirement benefits; minus

-     Cash and banks (excluding restricted cash previously considered); minus

-     Short-term financial investments (excluding restricted investments
      previously considered)).

NET DEBT ADJUSTMENT (NDA)

It means the amount by which Closing Net Debt is greater than Opening Net Debt
(in which case such amount shall be expressed as a positive amount) or by which
Closing Net Debt is lower than Opening Net Debt (in which case such amount shall
be expressed as a negative amount).

OPENING WORKING CAPITAL (NET OF PROVISIONS)

It means Euro sixteen thousand three hundred and ninety two (16,392) thousand,
being the working capital at 30 June 2004 as per the Reference Balance Sheet,
including the Items detailed in the Balance Sheet Items for the Completion Price
Adjustment in Part E of this schedule:

-     Inventories ("Stocks"); plus

-     Debtors; plus

-     Prepayments; minus

-     Trade creditors; minus

-     Other short-term creditors (excluding deferred tax and all the other items
      previously included as part of the net debt)

                                       49
<PAGE>

CLOSING WORKING CAPITAL

It means the working capital at the date of Completion, as per the Completion
Balance Sheet, including the items consistent with Balance Sheet Items for the
Completion Price Adjustment in Part E of this schedule:

-     Inventories ("Stocks"); plus

-     Debtors; plus

-     Prepayments; minus

-     Trade creditors; minus

-     Other short-term creditors (excluding deferred tax and excluding all the
      other items previously included as part of the net debt)

WORKING CAPITAL ADJUSTMENT (WCA)

It means the amount by which Closing Working Capital is greater than Opening
Working Capital (in which case such amount shall be expressed as a positive
amount) or by which Closing Working Capital is lower than Opening Working
Capital (in which case such amount shall be expressed as a negative amount).

OPENING GROSS TANGIBLE AND INTANGIBLE ASSETS

It means Euro one hundred sixty four thousand and five hundred and thirty five
(164,535) thousand, being the gross tangible assets and gross intangible assets
(excluding goodwill, goodwill on consolidation and start up costs) at 30 June
2004 as per the Reference Balance Sheet, including the Items detailed in Balance
Sheet Items for the Completion Price Adjustment in Part E of this schedule:

-     Gross tangible assets (before accumulated depreciation and provisions);
      plus

-     Gross intangible assets, excluding goodwill and start up costs (before
      accumulated amortisation and provisions).

CLOSING GROSS TANGIBLE AND INTANGIBLE ASSETS

It means the gross tangible assets and gross intangible assets (excluding
goodwill, goodwill on consolidation and start up costs) at the date of
Completion as per the Completion Balance Sheet, including the items consistent
with Balance Sheet Items for the Completion Price Adjustment in Part E of this
schedule:

-     Gross tangible assets (before accumulated depreciation and provisions);
      plus

-     Gross intangible assets, excluding goodwill and start up costs,(before
      accumulated amortisation and provisions).

CAPITAL EXPENDITURE ADJUSTMENT (CEA)

It means the amount by which Closing Gross Tangible and Intangible Assets is
greater than Opening Gross Tangible and Intangible Assets (in which case such
amount shall be expressed as a positive amount) or by which Gross Tangible and
Intangible Assets is lower than Opening Gross Tangible and Intangible Assets (in
which case such amount shall be expressed as a negative amount).

                                       50
<PAGE>

OPENING OTHER ASSETS AND LIABILITIES

It means the amounts in Euro four thousand and eighty three (4,083) thousand at
30 June 2004 resulting from the following formula as per the Reference Balance
Sheet, and including the following Items as detailed in Balance Sheet Items for
the Completion Price Adjustment in Part E of this schedule, of the following:

-     Long-term financial assets; minus

-     Other long-term creditors, (excluding deferred tax and all the other items
      previously included as part of the net debt)

CLOSING OTHER ASSETS AND LIABILITIES

It means the amounts resulting from the following formula at the date of
Completion as per the Completion Sheet and including the Items consistent with
Balance Sheet Items for the Completion Price Adjustment in Part E of this
schedule:

-     Long-term financial assets; minus

-     Other long-term creditors, (excluding deferred tax and all the other items
      previously included as part of the net debt)

OTHER ASSETS AND LIABILITIES ADJUSTMENT (OALA)

It means the amount by which "Closing Other Assets and Liabilities" is greater
than "Opening Other Assets and Liabilities" (in which case such amount shall be
expressed as a positive amount) or by which "Closing other Assets and
Liabilities" is lower than "Opening Other Assets and Liabilities" (in which case
such amount shall be expressed as a negative amount).

                                       51
<PAGE>

          PART E - BALANCE SHEET ITEMS FOR COMPLETION PRICE ADJUSTMENT

                                   SCHEDULE 6
                                     PART E
               BALANCE SHEET ITEMS FOR COMPLETION PRICE ADJUSTMENT
<TABLE>
<CAPTION>
                   (E'000)                                   AS OF 30/6/04
----------------------------------------------               -------------
<S>                                                          <C>
TOTAL NET DEBT:                                                  78,580
                                                                -------
TOTAL DEBT                                                       80,596
                                                                -------
defined as:

BANK DEBT
         Long Term                                                9,481
         Short Term                                               5,890
                                                                 ------
         TOTAL                                                   15,371

LEASE CREDITORS
         Long Term                                               46,557
         Short Term                                               1,992
         Deferred Expenses                                      (31,600)
                                                                 ------
         TOTAL                                                   16,949

AMOUNTS DUE TO GROUP COMPANIES
         Group loans                                             43,684
         Group trade creditors                                      895
                                                                 ------
         TOTAL                                                   44,579

FIXED ASSETS SUPPLIERS                                            3,222

CREDITORS FOR AQUISITIONS - NET
         Creditors for acquisitions                               2,425
         Restricted cash on acquisitions                           (180)
         Other restricted cash                                   (1,954)
                                                                  -----
         TOTAL                                                      291

PROVISION FOR PENSIONS AND SIMILAR COMMITMENTS                      184
                                                                -------
TOTAL CASH:                                                       2,016
                                                                -------
defined as:

CASH AND SHORT TERM INVESTMENTS
         Cash and banks (excl. Restricted cash)                   1,990
         Short term investments                                      26
                                                                -------
         TOTAL                                                    2,016
                                                                -------
NET WORKING CAPITAL:                                             16,392
                                                                -------
defined as:

CURRENT ASSETS
         Inventories                                              2,986
         Debtors                                                 32,796
         Prepayments                                                868
                                                                 ------
         TOTAL                                                   36,650
less:
</TABLE>

                                       52
<PAGE>

<TABLE>
<S>                                                          <C>
CURRENT LIABILITIES
         Trade creditors                                         15,265
         Other creditors (excluding deferred tax)                 4,993
                                                                -------
         TOTAL                                                   20,258
                                                                -------
GROSS TANGIBLE AND INTANGIBLE ASSETS                            164,535
                                                                -------
defined as:

Gross tangible assets                                           145,563
Gross intangible assets (excl. goodwill and start-up costs)      18,972
                                                                -------
OTHER ASSETS AND LIABILITIES                                      4,083
                                                                -------
defined as:

Long term financial assets                                        6,028
Other long term creditors                                        (1,945)
</TABLE>

                                       53

<PAGE>

                                   SCHEDULE 6

                              PURCHASER WARRANTIES

1.    CAPACITY

      The Investment Group (and, when appropriate, the Purchaser) has obtained
      all necessary corporate and other consents and approvals in relation to
      the performance of this Agreement and, accordingly, has full power to
      enter into and perform this Agreement which constitutes binding
      obligations on the Investment Group (and, when appropriate, the Purchaser)
      in accordance with its terms.

2.    FUNDING

      The Purchaser shall at the relevant time have immediately available on an
      unconditional basis (subject only to Completion) the necessary cash
      resources to meet its obligations under this Agreement.

3.    CONSENT

      No governmental regulatory or other consent is required to enable the
      Purchaser to fulfil its obligations under this Agreement.

4.    FEES AND COMMISSIONS

      The Purchaser has not entered into any contract or other arrangement or
      understanding with any person or entity that may result in the obligation
      of the any member of the Seller's Group to pay any fees or commissions to
      any broker or finder as a result of this Agreement or the Completion of
      the Transaction.

5.    BREACHES OF OTHER AGREEMENTS

      The execution of and performance of the terms of this Agreement by the
      Purchaser will not give rise to a breach of any other agreement between
      the Purchaser and any third party.

                                       54
<PAGE>

                                   SCHEDULE 7

                                 PRE-COMPLETION

1.    ACCESS

      Pending Completion, the Seller shall:

      (a)   procure that the Purchaser, its agents and representatives are given
            reasonable access to the properties and to the books and records of
            the Group Companies during normal business hours on any Business Day
            and on reasonable notice to the Seller; and

      (b)   provide such information regarding the businesses and affairs of the
            Group Companies as the Purchaser may reasonably require.

      (c)   Cancel all Outstanding Security on the date of Completion BUT prior
            to the excution of the Transaction.

2.    CONDUCT OF BUSINESS

      The Seller hereby undertakes to the Purchaser that in the period prior to
      Completion:

      (a)   the businesses of the Group Companies will be carried on as a going
            concern in the normal course;

      (b)   no physical assets of the Group Companies shall be removed from any
            of its properties or disposed of save in the ordinary course of
            normal day to day trading and market conditions;

      (c)   it will use its best endeavours to maintain the trade and trade
            connections of the Group Companies;

      (d)   it will procure that all debts which the Group Companies incurs in
            the normal course of the business will be settled by the Group
            Companies within the applicable periods of credit (where such
            periods expire prior to Completion);

      (e)   it shall promptly give to the Purchaser full details of any actual
            or potential material changes known to the Seller in the business,
            financial position and/or assets of the Group Companies;

      (f)   the Group Companies shall maintain in force policies of insurance
            with limits of indemnity at least equal to, and otherwise on terms
            no less favourable than, those policies of insurance currently
            maintained by the Group Companies;

      (g)   the Group Companies will properly record and/or account for all
            events, actions and transactions affecting or carried out by the
            Group Companies, in accordance with Spanish GAAP and with accounting
            policies and valuation criteria consistently applied by the Group
            Companies;

      (h)   the Group Companies shall not, otherwise than in the ordinary course
            of business:

            (i)   enter into, modify or agree to terminate any material contract
                  (other than in the ordinary course of business);

            (ii)  alter, or agree to alter, the terms and conditions of
                  employment (including benefits) of any of its employees or
                  workers, nor dismiss any of its employees or workers and the
                  Seller shall not directly or indirectly induce or

                                       55
<PAGE>

                  endeavour to induce any of such employees or workers to
                  terminate their employment prior to Completion:

            (iii) dispose of any material assets used or required for the
                  operation of the business or enter into any other transaction
                  otherwise than in the ordinary course of business;

            (iv)  create any encumbrance over any of its assets or its
                  undertaking nor, otherwise than in the ordinary course of the
                  business, give any guarantees or indemnities in respect of any
                  third party (provided that any such encumbrances or guarantees
                  must be cancelled by Completion pursuant to clause 13);

            (v)   institute, settle or agree to settle any material legal
                  proceedings relating to the business, save for debt collection
                  in the ordinary course of business;

      provided that the Seller and the Company shall be entitled to do any of
      the things specified in this clause with the prior written consent of the
      Purchaser, not to be unreasonably withheld. The Purchaser will be deemed
      to be unreasonably withholding consent if not carrying out any of the
      activities in this subclause will damage the business of the Company.

3.    COOPERATION

      During the period between the Signing Date and Completion, both the Seller
      and the Purchaser shall cooperate with the Purchaser to reach an
      expeditious and practical completion of the Transaction.

      In this respect, and if the Purchaser would so request, the Seller shall
      take the adequate steps to procure the change of the corporate year
      ("ejercicio social") of all the Group Companies that Purchaser indicates,
      before Completion. The Purchaser will provide administrative support to
      the Seller for this purpose.

      The Seller shall also facilitate the identification of assets of the Group
      Companies and the status of the process of cancellation of guarantees.

      The Seller shall also take on the Signing Date the necessary measures for
      the following to be achieved by Completion:

      (a)   regularisation of any deficiencies in compliance with Foreign
            Investments regulations;

      (b)   legalisation and updating of all corporate books of the Companies
            (including, in particular, the Registry Books of Shares and the
            Registry Book of Participations);

      (c)   deposit of the annual accounts of the Group Companies that should
            have been deposited but have not yet been deposited with the
            Commercial Registry.

      (d)   restoration of the net worth of the Group Companies that are under a
            dissolution cause ("causa de disolucion").

      (e)   formalisation of any legal documents as may be necessary to clarify
            that the Company is the holder of all exploitation rights ("derechos
            de explotacion") over the AHM Software world-wide and for the whole
            term of their legal protection.

4.    STOCK OF UNITED SURGICAL PARTNERS INTERNATIONAL INC.

      The Purchaser undertakes that in the period prior to Completion it shall
      not and shall procure that the members of the Purchaser's Group and its
      and their respective agents,

                                       56
<PAGE>

      employees and advisers having actual knowledge of the matters which are
      the subject of this Agreement shall not deal in any manner or enter into
      any trade or any agreement concerning or relating to the stock of United
      Surgical Partners International Inc.

                                       57
<PAGE>

                                   SCHEDULE 8

                                   COMPLETION

1.    AT COMPLETION:

1.1   On the date of Completion (but prior to the execution of the Transaction)
      the Seller shall execute a notarial deed cancelling all security
      associated with the Seller's Group Credit Facility and will at that time
      also deliver to the Purchaser a letter from the Seller's Group Credit
      Facility's Agent releasing the Seller and the Group Companies from any
      obligation or liability in connection with the Seller's Group Credit
      Facility, without prejudice and subject to clause 13.

1.2   The Seller shall procure (or shall have procured) the release by the
      relevant secured parties of any existing pledge, lien and charge over the
      Participations, and the shares and quotas of the Subsidiaries and of the
      security over the assets of the Group Companies;

1.3   The Seller shall procure that the Company, its Subsidiaries and the
      Management Members repay in cleared funds all debt together with interest
      owed at Completion to any other company in the Seller's Group;

1.4   The Parties shall appear before the Notary and execute the Notarial
      Transfer Deed and the Disclosure Letter;

1.5   Upon execution of the Notarial Transfer Deed, the Seller shall produce:

      (a)   sufficient powers of attorney required for the execution and
            completion of the Agreement in a public deed; and

      (b)   the public deeds ("polizas or escrituras") which evidence the
            Seller's title to the Participations in order for the notary public
            to record the transfer of the Participations in those public deeds.

1.6   Upon execution of the Notarial Transfer Deed, the Purchaser shall:

      (a)   produce sufficient powers of attorney required for the execution and
            completion of the Agreement in a public deed; and

      (b)   pay the Price to the Seller by way of banking cheques or bank
            transfer to the account designated by the Seller procuring that the
            value date of such payment is, if possible, the date of Completion.

1.7   The Seller shall deliver to the Purchaser or its representatives such
      evidence as is reasonably necessary to demonstrate:

      (a)   such waivers or consents as may be necessary to enable the Purchaser
            to become the owner of all the Participations;

      (b)   the resignations of all the directors of the Company;

      (c)   evidence of the cancellation of existing inter-company agreements
            between the Company and the Seller's Group.

1.8   The Seller shall deliver to the Purchaser or its representatives:

      (a)   the updated registry books of members or shareholders ("Libro
            Registro de Socios o de Acciones Nominativas") of the Group
            Companies.

                                       58
<PAGE>

1.9   The Seller shall deliver to the Purchaser any letters of resignation of
      directors of the Group Companies who are employees in the Seller's Group
      as required pursuant to the foregoing. The Purchaser undertakes to procure
      acceptance by the Group Companies of these resignations and their approval
      of the management carried out by such directors up to Completion.

1.10  The Parties shall sign and submit duly completed forms (D1A and D1B) to
      declare the Transaction to the Ministry of Economy's registry of foreign
      investments.

1.11  The Parties shall give effect to the provisions of clause 10 of this
      Agreement.

1.12  The Seller shall provide a certificate signed by the secretary of the
      Board of the Company, with the approval of its Chairman, stating that all
      corporate and contractual requirements for the transfer of the
      Participations have been complied with.

                                       59
<PAGE>

                                   SCHEDULE 9

                    AGREED FORM OF NOTARIAL DEED OF TRANSFER

                          [To be agreed by Completion]

                                       60
<PAGE>

                               DATA ROOM DOCUMENTS

                                       61
<PAGE>
                                 INTERPRETATION

1.    In this Agreement:

      "3-MONTH EURIBOR" in relation to any amount on any day, means:

      (a)   the rate per annum calculated and (rounded upwards to five decimal
            places) published or reported on Telerate page 248 (or such other
            screen or page as may replace that screen or page on that service)
            or about 12.00 p.m. on the second Business Day before such day as
            being the interest rate per annum offered in the European inter-bank
            market for deposits in Euro in an amount comparable with such amount
            for a three month period; or

      (b)   if the service in (i) above is not available, the rate per annum
            determined by the Party to whom monies are owed to be equal to the
            arithmetic mean (rounded upwards to five decimal places) of the
            rates (as notified to such Party) at which each of three leading
            banks in the Madrid market were offering deposits in Euro in an
            amount comparable with the relevant amount for a three month period
            at or about 12.00 p.m. on the second Business Day before such day;

      "ACCOUNTANTS" has the meaning given to it in section 1.4 of the schedule
      headed "Completion Balance Sheet", Part A.

      "ACCOUNTS" means:

      (a)   the Group Companies' audited statutory individual accounts
            (including the balance sheet, the profit and loss account, the
            annual report ("memoria") and the management report ("informe de
            gestion")) as at 31 December 2003, the Company's audited statutory
            consolidated accounts (including the balance sheet, the profit and
            loss account, the annual report ("memoria") and the management
            report ("informe de gestion")) as at 31 December 2003 (the 31
            December 2003 Audited Individual and Consolidated Accounts) and

      (b)   the Company's consolidated accounts (including the balance sheet and
            the profit and loss account) as at 30 June 2004 (the 30 June 2004
            Accounts).

      "ACCOUNTS DATE" means 31 December 2003 in relation to the 31 December 2003
      Audited Individual and Consolidated Accounts, and 30 June 2004 in relation
      to the 30 June 2004 Accounts.

      "ADVANCED PAYMENT" has the meaning given to it in subclause 6.2(a).

      "AGENT" means Suntrust Bank.

      "AGREEMENT" means this document and all the schedules and annexes referred
      to in it.

      "ASSOCIATED COMPANIES" means a company in which the Company has a direct
      or indirect participating interest and which is not a Subsidiary, basis
      information concerning each such company being set out in part B of the
      schedule headed "Subsidiaries and Associated Companies".

      "BALANCE SHEET" Items for the Completion Price Adjustment has the meaning
      given in Part E of the Schedule headed "Completion Balance Sheet".

      "BUSINESS DAY" means a day (other than Saturday or Sunday) on which banks
      are generally open in Madrid for normal business.

      "CAPITAL EXPENDITURE ADJUSTMENT" or "CEA" has the meaning given to it in
      the Schedule headed "Completion Balance Sheet", Part D.

                                       62
<PAGE>

      "CLASS A PARTICIPATIONS" has the meaning given to it in the Recital A.

      "CLASS B PARTICIPATIONS" has the meaning given to it in the Recital A.

      "CLOSING GROSS TANGIBLE AND INTANGIBLE ASSETS" has the meaning given to it
      in the Schedule headed "Completion Balance Sheet", Part D.

      "CLOSING NET DEBT" has the meaning given to it in the Schedule headed
      "Completion Balance Sheet", Part D.

      "CLOSING OTHER ASSETS AND LIABILITIES" has the meaning given to it in the
      Schedule headed "Completion Balance Sheet", Part D.

      "CLOSING WORKING CAPITAL" has the meaning given to it in the Schedule
      headed "Completion Balance Sheet", Part D.

      "COMPANY" has the meaning given to it in the Recital A.

      "COMPLETION" means the day when the Transaction is completed and the
      ownership and risk over the Participations is transferred to the
      Purchaser, subject to clause 9 and the schedule headed "Completion".

      "COMPLETION ADJUSTMENT" has the meaning given to it in clause 7.2.

      "COMPLETION BALANCE SHEET" has the meaning given to it in schedule headed
      "Completion Balance Sheet".

      "COMPLETION PRICE" has the meaning given to it in the Schedule headed
      "Completion Balance Sheet", Part D.

      "DAMAGES" means any damages limited to direct loss and loss of profit
      ("dano emergente y lucro cesante"), attributable to a Breach of Warranties
      under a valid Warranty Claim and suffered by any Group Company including
      any amount by which the net worth ("patrimonio") of any Group Company or
      the Group is lower than that reflected in the corresponding Accounts.

      Damages will have to be duly evidenced ("debidamente probados"), and will
      be payable by the Seller:

      (a)   when the Damages are accepted by the Seller or

      (b)   when the Damages arise from a Warranty Claim that is not a Third
            Party Claim and disagreement exists between the Parties, when the
            Damages are confirmed in an arbitration award according to clause
            19; or

      (c)   when the Damages arise from a Third Party Claim, (a) when a court or
            arbitral resolution is issued against the relevant Group Company or
            Associated Company or (b) when the matter is settled by the relevant
            Group Company or Associated Company, and

      (d)   when the Damages arise from a Third Party Claim related to Tax, or
            any labour or other administrative matter, at the time when the
            relevant Group Company or Associated Company is obliged to make a
            payment in relation to such Third Party Claim.

      Any Damages shall be calculated pro rata to the direct or indirect
      participation of the Purchaser in the Transaction Company in respect of
      which there has been a breach of the Warranties, except when they refer to
      any of the Group Companies, in which case the

                                       63
<PAGE>

      Damages to be compensated shall be the whole Damages suffered by the
      Purchaser or the relevant Group Company.

      "DAMAGES PAYMENT" has the meaning given in section 9 of the schedule
      headed "Limits on Warranty Claims".

      "DATA ROOM DOCUMENTS" means the documents listed in the Schedule headed
      "data room documents".

      "DATA ROOM" has the meaning given in Recital (E).

      "DETERMINATION DATE" has the meaning given to it in the schedule headed
      "Completion Balance Sheet".

      "DISCLOSURE LETTER" means the letter of the same date as the date of this
      Agreement and as updated on Completion from the Seller to the Purchaser as
      further described in paragraph 3 of the schedule headed "Seller's
      Warranties" provided, however, that no Disclosure shall be deemed to be
      made on Completion with regards to matters having occurred prior to the
      Signing Date or known to the Seller prior to the Signing Date.

      "DRAFT COMPLETION BALANCE SHEET" has the meaning given to it in section
      1.1 of the schedule headed "Completion Balance Sheet" Part A.

      "DUE DILIGENCE" has the meaning given to it in Recital D.

      "EXCESS RECOVERY" has the meaning given in section 9 of the schedule
      headed "Limits on Warranty Claims".

      "FACILITIES" means the financing package provided in relation to the
      Transaction.

      "GROUP COMPANIES" means the Company and the Subsidiaries.

      "INVESTMENT GROUP" means Jenebe International S.a.r.l., Delphirica
      Investments S.a.r.l., Alosem Sociedad Civil, Tesalia Sociedad Civil,
      Capital Stock S.C.R., S.A., or any company belonging to their respective
      groups, as defined in Section 42 of the Commercial Code and Section 4 of
      the Law on Securities Market ("Ley del Mercado de Valores").

      "ITEMS" are the items mentioned in the Balance Sheet Items for the
      Completion Price Adjustment in the Schedule headed "Completion Balance
      Sheet" Part B.

      "MANAGEMENT MEMBERS" has the meaning given to it in the schedule headed
      "The Company".

      "MANDATED ARRANGER" means ING Bank NV, London Branch.

      "MATERIAL ADVERSE CHANGE" means any event or circumstance (or any
      combination thereof), which in the reasonable opinion of the Mandated
      Arranger has materially adversely affected or could materially adversely
      affect, during the period from the Signing Date to the Completion: (i) the
      business, condition (financial or otherwise), operations, performance,
      assets and rights of the Group Companies taken as a whole; (ii) the
      performance, by the Group Companies taken as a whole, of their relevant
      obligations to third parties, or (iii) the international or the syndicated
      loan market in Spain when the relevant event or circumstance is due to an
      exceptional cause of notorious magnitude which could materially prejudice
      syndication of the Facilities.

      "NEGATIVE PRICE ADJUSTMENT" has the meaning given to it in clause 7.2.

      "NET DEBT ADJUSTMENT" or "NDA" has the meaning given to it in the Schedule
      headed "Completion Balance Sheet", Part D.

                                       64
<PAGE>

      "NOTARIAL DEED OF TRANSFER" means the notarial deed to be executed on
      Completion to raise to public document status this Agreement and the
      Disclosure Letter in order to complete the Transaction, such notarial deed
      to be substantially in the form of the schedule headed "Agreed Form of
      Notarial Deed of Transfer".

      "NOTARY" means the notary public of Madrid to be designated by the Buyer.

      "OPENING GROSS TANGIBLE AND INTANGIBLE ASSETS" has the meaning given to it
      in the Schedule headed "Completion Balance Sheet", Part D.

      "OPENING NET DEBT" has the meaning given to it in the Schedule headed
      "Completion Balance Sheet", Part D.

      "OPENING OTHER ASSETS AND LIABILITIES" has the meaning given to it in the
      Schedule headed "Completion Balance Sheet", Part D.

      "OPENING WORKING CAPITAL" has the meaning given to it in the Schedule
      headed "Completion Balance Sheet", Part D.

      "OTHER ASSETS AND LIABILITIES ADJUSTMENT" or "OALA" has the meaning given
      to it in the Schedule headed "Completion Balance Sheet", Part D.

      "PARTICIPATIONS" has the meaning given to it in the Recital A.

      "PARTIES" means the Seller and the Purchaser.

      "PARTY" means either the Seller or the Purchaser as appropriate.

      "PAYMENT AT COMPLETION" has the meaning given to it in clause 6.2(a).

      "POSITIVE PRICE ADJUSTMENT" has the meaning given to it in clause 7.1.

      "PRICE" has the meaning given to it in clause 6.

      "PURCHASER" has the meaning given to it on page one of the Agreement.

      "PURCHASER'S GROUP" means the Purchaser and any company within its group,
      as defined in Section 42 of the Commercial Code and Section 4 of the Law
      on Securities Market ("Ley del Mercado de Valores").

      "REFERENCE BALANCE SHEET" means the consolidated balance sheet of the
      Company at 30 June 2004, copy of which is attached in the Schedule headed
      "Reference Balance Sheet", Part B, including the Items detailed in the
      Balance Sheet Items for the Completion Price Adjustment in Part E of the
      same Schedule.

      "RELIEF" means any loss, relief, allowance, set-off, deduction, right to
      repayment or credit or other relief of a similar nature, granted by or
      available in relation to Tax pursuant to any legislation or otherwise.

      "SELLER" has the meaning given to it on page one of the Agreement.

      "SELLER'S GROUP CREDIT FACILITY" means the Second Amended and Restated
      Credit Agreement, a credit agreement as finally amended on 7 November 2002
      by means of which USP Domestic Holdings, Inc and the Seller (the debtors)
      were granted by different financial entities (being Suntrust Bank the
      agent for all of them) revolving loans, letter of credit and swing line
      loans up to USD 115,000,000 with maturity date as of 7 November 2005 .

                                       65
<PAGE>

      "SELLER'S GROUP CREDIT FACILITY" means the Second Amendment to the Second
      Amended and Restated Credit Agreement, a credit agreement as finally
      amended on 1 August 2003 by means of which USP Domestic Holdings, Inc and
      the Seller (the debtors) were granted by different financial entities
      (being Suntrust Bank the administrative agent for all of them) revolving
      loans, letter of credit and swing line loans up to USD 125,000,000 with
      maturity date as of 7 November 2005.

      "SELLER'S GROUP" means the group of companies to which the Seller belongs,
      as defined in section 42 of the Commercial Code.

      "SELLER'S LAWYERS" means Allen & Overy, Madrid of Pedro de Valdivia 10,
      28006 Madrid, Spain.

      "SIGNING DATE" means the date of this Agreement first mentioned on page
      one of this Agreement.

      "SPANISH GAAP" means generally accepted accounting principles and
      practices in Spain.

      "SUBSIDIARY" means a subsidiary of the Company for the purposes of article
      42 of the Spanish Commercial Code ("Codigo de Comercio"), basis
      information concerning each subsidiary of the Company being set out in
      part A of the schedule headed "Subsidiaries and Associated Companies".

      "SUPPLEMENTARY REPORT" means the supplementary legal due diligence report
      prepared by Allen & Overy entitled "Project Saturn - Legal Due Diligence
      Report- Supplementary Appendix" dated 22 July 2004.

      "TAX RETURN" means any return, computation, assessment, report, document,
      form, declaration, claim for refund, information report or return,
      statement, supplementary or supporting schedules or other information or
      correspondence filed with any Taxation Authority with respect to Taxes.

      "TAX, TAXES OR TAXATION" means all forms of taxation whether direct or
      indirect and whether levied by reference to income, profits or gross
      receipts, gains, net wealth, asset values, turnover, added value, sales,
      goods and services, use, real or personal property, capital stock,
      license, branch or other reference and statutory, governmental, state,
      provincial, local or municipal impositions, duties, fees, imposts,
      contributions, rates and levies, whenever and wherever imposed and all
      deductions or withholdings for or on account of Tax from payments required
      by law to be made by the Company all penalties, fines, assessments,
      additions, charges, costs and interest relating thereto and shall include
      taxes treated as, or deemed to be, payable and taxes on deemed profits,
      income and gains.

      "TAXATION AUTHORITY" means any taxing or other authority competent to
      impose, administer, audit or collect any Taxes.

      "THIRD PARTY CLAIM" has the meaning given in section 7 of the schedule
      headed "Limits on Warranty Claims".

      "THIRD PARTY SUM" has the meaning given in section 9 of the schedule
      headed "Limits on Warranty Claims".

      "TRANSACTION COMPANIES" means the Group Companies and the Associated
      Companies.

      "TRANSACTION" has the meaning given to it in clause 4.1.

      "VENDOR'S FINANCIAL DUE DILIGENCE REPORT" means the Seller's due diligence
      report prepared by Ernst & Young dated 28 June 2004.

                                       66
<PAGE>

      "VENDOR'S LEGAL DUE DILIGENCE REPORT" means the legal due diligence report
      prepared by Allen & Overy entitled "Project Saturn - Legal Due Diligence
      Report" and dated 1 July 2004.

      "WARRANTIES" means the warranties on the part of the Seller contained in
      clause 11 and the schedule headed "Seller's Warranties".

      "WARRANTY CLAIM" means a claim by the Purchaser for Damages due to any
      breach or alleged breach of any of the Warranties.

      "WORKING CAPITAL ADJUSTMENT" or "WCA" has the meaning given to it in the
      Schedule headed "Completion Balance Sheet", Part D.

2.    In this Agreement any reference, express or implied, to an enactment
      (which includes any legislation in any jurisdiction) includes references
      to:

      (a)   that enactment as amended, extended or applied by or under any other
            enactment before or after the date of this Agreement;

      (b)   any enactment which that enactment re-enacts (with or without
            modification); and

      (c)   any subordinate legislation (including regulations) made (before or
            after the date of this Agreement) under that enactment, as
            re-enacted, amended, extended or applied as described in paragraph
            (a) above, or under any enactment referred to in paragraph (b)
            above,

      except to the extent that any of the matters referred to in paragraphs (a)
      to (c) above occurring after the date of this Agreement creates, increases
      or alters the liability of the Seller under this Agreement.

3.    In this Agreement:

      (a)   words denoting persons shall include bodies corporate and
            unincorporated associations of persons;

      (b)   references to a natural person include his estate and personal
            representatives; and

      (c)   subject to the sub-clause on assignments in clause 16.3 (General),
            references to a Party to this Agreement include references to the
            successors or assigns (immediate or otherwise) of that Party.

4.    Where any provision is qualified or phrased by reference to the ordinary
      course of business, such reference shall be construed as meaning the
      customary course of trading for the business in the country concerned.

5.    Warranties in which reference is made to the knowledge of the Seller or
      which are made so far as the Seller is aware refer to facts or events
      known to the Seller or which should have been known by a seller acting
      with the diligence of a prudent businessman ("ordenado comerciante").

6.    References to "Euro" or "E" are to the currency introduced at the start of
      the third stage of European economic and monetary union pursuant to the
      Treaty establishing the European Community, as amended which is the lawful
      currency in Spain.

7.    Where there is any inconsistency between the definitions set out in this
      schedule and the definitions set out in any clause or schedule, then for
      the purposes of construing such clause or schedule, the definitions set
      out in such clause or schedule shall prevail.

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8.    The singular shall include the plural and vice versa and the masculine
      shall include the feminine and vice versa.

9.    Where any provision of clause 11.1 or of the schedule headed "Seller's
      Warranties" or the schedule headed "Pre-Completion" is qualified or
      phrased by reference to materiality, such reference shall, refer to a
      matter having an economical consequence involving damage of Euro 100,000
      or more.

10.   Although the Agreement is written in English, words appearing in Spanish
      in italics shall have their accepted meanings under Spanish law.

Paragraphs 1 to 10 above apply unless the contrary intention appears.

                                       68
<PAGE>

                                LIST OF EMPLOYEES

                                       69

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