Document:

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                                                                   EXHIBIT 10.31

                           PROVINCE HEALTHCARE COMPANY
                          EXECUTIVE SEVERANCE AGREEMENT

        THIS EXECUTIVE SEVERANCE AGREEMENT ("Agreement") is entered into as of
this 1st day of January, 2002, by and between Province Healthcare Company (the
"Company") and STEPHEN M. RAY ("Employee").

                              W I T N E S S E T H:

        WHEREAS, Employee is employed as Senior Executive Vice President & Chief
Financial Officer of the Company; and

        WHEREAS, the Company desires to provide certain severance payments to
Employee in the event that Employee's employment with the Company is terminated
without cause or in connection with a change in control of the Company;

        NOW, THEREFORE, based upon the premises set forth herein and for other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

                             ARTICLE I. DEFINITIONS

        Terms used in this Agreement that are defined are indicated by initial
capitalization of the term. References to an "Article" or a "Section" mean an
article or a section of this Agreement. In addition to those terms that are
specifically defined herein, the following terms are defined for purposes
hereof:

        "Administrator" means a committee consisting of the Company's chief
executive officer, the secretary of the Company, the vice president of human
resources, and any other individuals appointed by the chief executive officer.
The Administrator may delegate any of its duties or authorities to any person or
entity. If a Change in Control occurs, as described in this Agreement, the
Administrator shall be the committee of individuals who were committee members
immediately prior to the Change in Control.

        "Benefit" means the benefits described in Article II and Article III.

        "Change in Control" means a transaction or circumstance in which any of
the following have occurred:

        (a) any "person" as such term is used in sections 13(d) and 14(d) of the
Exchange Act, other than the Company or a wholly-owned Subsidiary thereof or any
employee benefit plan of the Company, becomes the "beneficial owner" (as defined
in Rule 13d-3 under said Act), directly or indirectly, of securities of the
Company representing more than 50% of the total voting power represented by the
Company's then outstanding Voting Securities (as defined below), or

        (b) during any period of two consecutive years, individuals who at the
beginning of such period constitute the Board and any new director whose
election by the Board or nomination for election by the Company's shareholders
was approved by a vote of at least two-thirds of the directors then still in
office

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who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to
constitute a majority thereof, or

        (c) the shareholders of the Company approve a merger or consolidation of
the Company with any other corporation, other than a merger or consolidation
which would result in the Voting Securities (i.e., any securities of the entity
which vote generally in the election of its directors) of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into Voting Securities of the
surviving entity) more than 50% of the total voting power represented by the
Voting Securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation, or

        (d) the shareholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all of its assets.

        "Code" means the Internal Revenue Code of 1986, as amended.

        "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

        "Subsidiary" means any subsidiary of the Company or of any of its
subsidiaries.

                ARTICLE II. CHANGE IN CONTROL TERMINATION PAYMENT

SECTION 2.1 BENEFITS ON TERMINATION.

        (a) Amount. Subject to the conditions, limitations and adjustments that
are provided for herein, the Company will provide Benefits to Employee equal to
the sum of the amounts described below if, within the 24 month period following
a Change in Control, Employee's employment with the Company terminates for any
reason:

        (1)     An amount equal to 200% of the Employee's annual base
                compensation determined by reference to his base salary in
                effect at the time of Change in Control.

        (2)     An amount equal to 200% of the highest annual bonus that
                Employee would be eligible to receive during the fiscal year
                ending during which the Change in Control occurs.

        (3)     For a period of 24 months, participation in medical, life,
                disability and similar benefit plans that are offered to
                similarly situated employees of the Company immediately prior to
                the applicable Change in Control for the Eligible Employee and
                his dependents. Such participation may be pursuant to the
                continuation coverage rights of Eligible Employees pursuant to
                Part 6 of Title I of ERISA ("COBRA") or the Company may provide
                such benefits directly through the purchase of insurance or
                otherwise. Notwithstanding the foregoing, the period for
                participation in a self-funded medical plan pursuant to this
                paragraph 3 shall not exceed the maximum period of continuation
                coverage provided under COBRA. If benefits are provided pursuant
                to COBRA continuation rights, the Company shall pay a cash
                amount to the Eligible Employee at the time of severance that is
                sufficient to cover all premiums required for such COBRA
                coverage under the appropriate benefit plans.

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        (4)     For a period of 24 months, participation in general and
                executive fringe benefits offered to similarly situated
                executive employees immediately prior to the applicable Change
                in Control.

        (5)     Upon the effective date of any Change in Control, any stock
                purchase options held by Employee pursuant to any qualified or
                nonqualified Company option plan shall immediately vest and
                become exercisable. The provisions of this Section 2.1 shall
                supersede any contrary provisions of any other agreement by and
                between the parties hereto, now existing or hereafter created,
                unless the provisions of this Section 2.1 shall be referred to
                specifically therein and modified, amended or waived by both
                parties hereto.

        (b) Adjustments to the Amount of Benefit. Notwithstanding anything
herein to the contrary, the amounts due to Employee under Section 2.1(a) shall
be adjusted in accordance with Section 2.2 if any payment provided to Employee
is determined to be subject to the excise tax described in section 4999 of the
Code.

        (c) Time for Payment; Interest. The cash Benefits payable made under
this Section 2.1 shall be paid to Employee in a single lump sum within ten days
following the date of termination. The Company's obligation to pay to Employee
any amounts under this Section 2.1 will bear interest at the lesser of (i) 10%
or (ii) the maximum rate allowed by law until paid by the Company, and all
accrued and unpaid interest will bear interest at the same rate, all of which
interest will be compounded annually.

        2.2 BENEFIT ADJUSTMENTS.

        (a) Gross Up Payment. Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment or
distribution by or on behalf of the Company to or for the benefit of Employee as
a result of a "change in control," as defined in section 280G of the Code,
whether paid or payable or distributed or distributable pursuant to the terms of
this Agreement or otherwise, but determined without regard to any additional
payments required under this Section, (a "Payment") would be subject to the
excise tax imposed by section 4999 of the Code or any interest or penalties are
incurred by Employee with respect to such excise tax (such excise tax, together
with any such interest and penalties, are hereinafter collectively referred to
as the "Excise Tax"), then Employee shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by Employee
of all taxes (including any interest or penalties imposed with respect to such
taxes), including, without limitation, any income taxes (and any interest and
penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up
Payment, Employee retains an amount of the Gross-Up Payment equal to the Excise
Tax imposed upon the Payments.

        (b) Tax Opinion. Subject to the provisions of Section 2.2(c), all
determinations required to be made under this Section 2.2, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by a nationally recognized accounting firm or law firm selected by the Company
(the "Tax Firm"); provided, however, that the Tax Firm shall not determine that
no Excise Tax is payable by Employee unless it delivers to Employee a written
opinion (the "Tax Opinion") that failure to pay the Excise Tax and to report the
Excise Tax and the payments potentially subject thereto on or with Employee's
applicable federal income tax return will not result in the imposition of an
accuracy-related or other penalty on Employee. All fees and expenses of the Tax
Firm shall be borne solely by the Company. Within 15 business days of the
receipt of notice from Employee that there has been a Payment, or such earlier
time as is requested by the Company, the Tax Firm shall make all determinations
required under this Section, shall provide to the Company and Employee a written
report setting

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forth such determinations, together with detailed supporting calculations, and,
if the Tax Firm determines that no Excise Tax is payable, shall deliver the Tax
Opinion to Employee. Any Gross-Up Payment, as determined pursuant to this
Section, shall be paid by the Company to Employee within fifteen days of the
receipt of the Tax Firm's determination. Subject to the remainder of this
Section 2.2, any determination by the Tax Firm shall be binding upon the Company
and Employee; provided, however, that Employee shall only be bound to the extent
that the determinations of the Tax Firm hereunder, including the determinations
made in the Tax Opinion, are reasonable and reasonably supported by applicable
law. As a result of the uncertainty in the application of section 4999 of the
Code at the time of the initial determination by the Tax Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company
should have been made ("Underpayment"), consistent with the calculations
required to be made hereunder. In the event that it is ultimately determined in
accordance with the procedures set forth in Section 2.2(c) that Employee is
required to make a payment of any Excise Tax, the Tax Firm shall reasonably
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of
Employee. In determining the reasonableness of Tax Firm's determinations
hereunder, and the effect thereof, Employee shall be provided a reasonable
opportunity to review such determinations with Tax Firm and Employee's tax
counsel. Tax Firm's determinations hereunder, and the Tax Opinion, shall not be
deemed reasonable until Employee's reasonable objections and comments thereto
have been satisfactorily accommodated by Tax Firm.

        (c) Notice of IRS Claim. Employee shall notify the Company in writing of
any claims by the Internal Revenue Service that, if successful, would require
the payment by the Company of the Gross-Up Payment. Such notification shall be
given as soon as practicable but no later than 30 calendar days after Employee
actually receives notice in writing of such claim and shall apprise the Company
of the nature of such claim and the date on which such claim is requested to be
paid; provided, however, that the failure of Employee to notify the Company of
such claim (or to provide any required information with respect thereto) shall
not affect any rights granted to Employee under this Section 2.2 except to the
extent that the Company is materially prejudiced in the defense of such claim as
a direct result of such failure. Employee shall not pay such claim prior to the
expiration of the 30-day period following the date on which he gives such notice
to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the Company notifies Employee in
writing prior to the expiration of such period that it desires to contest such
claim, Employee shall do all of the following:

        (1)     give the Company any information reasonably requested by the
                Company relating to such claim;

        (2)     take such action in connection with contesting such claim as the
                Company shall reasonably request in writing from time to time,
                including, without limitation, accepting legal representation
                with respect to such claim by an attorney selected by the
                Company and reasonably acceptable to Employee;

        (3)     cooperate with the Company in good faith in order effectively to
                contest such claim;

        (4)     if the Company elects not to assume and control the defense of
                such claim, permit the Company to participate in any proceedings
                relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Employee harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect

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thereto) imposed as a result of such representation and payment of costs and
expenses. Without limiting the foregoing provisions of this Section 2.2, the
Company shall have the right, at its sole option, to assume the defense of and
control all proceedings in connection with such contest, in which case it may
pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may either
direct Employee to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and Employee agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs Employee to pay such
claim and sue for a refund, the Company shall advance the amount of such payment
to Employee, on an interest-free basis and shall indemnify and hold Employee
harmless, on an after-tax basis, from any Excise Tax or income tax (including
interest or penalties with respect thereto) imposed with respect to such advance
or with respect to any imputed income with respect to such advance; and further
provided that any extension of the statute of limitations relating to payment of
taxes for the taxable year of Employee with respect to which such contested
amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company's right to assume the defense of and control the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and Employee shall be entitled to settle or contest,
as the case may be, any other issue raised by the Internal Revenue Service or
any other taxing authority.

        (d) Right to Tax Refund. If, after the receipt by Employee of an amount
advanced by the Company pursuant to Section 2.2 Employee becomes entitled to
receive any refund with respect to such claim, Employee shall (subject to the
Company's complying with the requirements of Section 2.2(c)) promptly pay to the
Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by Employee of an
amount advanced by the Company pursuant to Section 2.2(c), a determination is
made that Employee is not entitled to a refund with respect to such claim and
the Company does not notify Employee in writing of its intent to contest such
denial of refund prior to the expiration of 30 days after such determination,
then such advance shall, to the extent of such denial, be forgiven and shall not
be required to be repaid and the amount of forgiven advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

               ARTICLE III. PAYMENT UPON TERMINATION WITHOUT CAUSE

        SECTION 3.1  BENEFITS ON TERMINATION.

        (a) Amount. Subject to the conditions, limitations and adjustments that
are provided for herein, in the absence of a Change in Control, and in the event
Employee's employment is terminated either by the Company without cause or by
the Employee with cause, as described below, Employee shall be entitled to
receive an amount equal to 200% of the Employee's annual base compensation
determined by reference to his base salary in effect at the time of termination.

        (1) By Company Without Cause Termination of employment by the Company
without cause shall occur if the Company provides oral or written notice to
Employee of involuntary termination that is not on account of just cause. For
this purpose, termination for "just cause" will only occur upon written notice
to Employee that employment is involuntarily terminated due to any of the
following:

        (i)     conviction of Employee for a crime involving fraud, dishonesty
                or theft, or of any felony which, in the reasonable judgment of
                the Board, materially affects Employee's ability to perform his
                duties pursuant to this Agreement;

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        (ii)    commission by Employee of an act of fraud, embezzlement, or
                material dishonesty against the Company or its affiliates; or

        (iii)   intentional neglect of or material inattention to Employee's
                duties, which neglect or inattention remains uncorrected for
                more than 30 days following written notice from the chief
                executive officer of the Company detailing the Company's
                concern.

        (2) By Employee With Cause. Termination of employment by Employee with
cause shall occur if Employee terminates employment for any of the following
reasons:

        (i)     A material adverse alteration in Employee's position,
                responsibilities or status.

        (ii)    A reduction in Employee's base compensation or a substantial
                reduction in the benefits provided to Employee.

        (iii)   Relocation of Employee by the Company to a location that is more
                than 35 miles from the Employee's current workplace.

        (iv)    The material breach of the Company of any portion of its
                employment policies and/or any employment agreement with
                Employee.

        (b) Adjustments to the Amount of Benefit. Notwithstanding anything
herein to the contrary, the amounts due to Employee under Section 3.1(a) shall
be adjusted in accordance with Section 2.2 of this Agreement if any payment
provided to Employee is determined to be subject to the excise tax described in
section 4999 of the Code.

        (c) Time for Payment; Interest. The cash Benefits payable made under
this Section 3.1 shall be paid to Employee in a single lump sum within ten days
following the date of termination. The Company's obligation to pay to Employee
any amounts under this Section 3.1 will bear interest at the lesser of (i) 10%
or (ii) the maximum rate allowed by law until paid by the Company, and all
accrued and unpaid interest will bear interest at the same rate, all of which
interest will be compounded annually.

        SECTION 3.2 COMPETITION.

                (a) Agreement Not to Compete. Employee agrees that, for a period
of 24 months after the termination of his employment as described in Section
3.1(a), he will not:

        (i)     directly or indirectly, own, manage, control, participate in,
                consult with or render services for (i) any business, the
                operating facilities of which compete with the operating
                facilities of the Company or its Subsidiaries within the
                geographical area included in the 50-mile radius around each
                location where the Company or any Subsidiary owns, leases,
                manages or otherwise maintains an operating facility, engages in
                business or, on the date of Employee's termination, plans to
                own, lease, manage or otherwise maintain a facility or engage in
                business, or (ii) any business in which the Company or any of
                its Subsidiaries has entered into a letter of intent or is or
                has been within one year prior to the date of termination of
                Employee's employment in active negotiations relating to the
                acquisition of such business by the

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                Company or its Subsidiaries; or

        (ii)    interfere with, disrupt or attempt to disrupt any present or
                prospective relationship, contractual or otherwise, between the
                Company and any customer, supplier or employee of the Company.

                (b) Remedies. Employee agrees and acknowledges that the
violation by Employee of the agreements contained in this Section 3.2 would
cause irreparable injury to the Company and that the remedy at law for any
violation or threatened violation thereof by him would be inadequate and that
the Company shall be entitled to temporary and permanent injunctive relief or
other equitable relief without the necessity of proving actual damages.

                           ARTICLE IV. ADMINISTRATION

        SECTION 4.1. The provisions of this Agreement are intended to provide
severance benefits and protection to Employee. The Administrator has absolute
discretion to interpret the terms of this Agreement and to make all
determinations required in the administration hereof, including making
determinations about eligibility for and the amounts of Benefits. All decisions
of the Administrator are final, binding and conclusive on all parties.

        SECTION 4.2. Benefits can only be denied or forfeited if Employee does
not satisfy the conditions for receiving payment that are described herein or if
the Company validly amends the Agreement as described in Section 5.4.

        SECTION 4.3. If Employee's claim for Benefits is denied, the
Administrator will furnish written notice of denial to Employee within 90 days
of the date the claim is received, unless special circumstances require an
extension of time for processing the claim. This extension will not exceed 90
days, and Employee must receive written notice stating the grounds for the
extension and the length of the extension within the initial 90-day review
period. If the Administrator does not provide written notice, Employee may deem
the claim denied and seek review according to the appeals procedures set forth
below.

        (a) Notice of Denial. The notice of denial to the Claimant shall state:

        (1)     The specific reasons for the denial.

        (2)     Specific references to pertinent provisions of the Agreement on
                which the denial was based.

        (3)     A description of any additional material or information needed
                for Employee to perfect his claim and an explanation of why the
                material or information is needed.

        (4)     A statement that Employee may request a review upon written
                application to the Administrator, review pertinent documents,
                and submit issues and comments in writing and that any appeal
                that Employee wishes to make of the adverse determination must
                be in writing to the Administrator within 60 days after Employee
                receives notice of denial of benefits.

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        (5)     The name and address of the Administrator to which Employee may
                forward an appeal. The notice may state that failure to appeal
                the action to the Administrator in writing within the 60-day
                period will render the determination final, binding and
                conclusive.

        (b) Appeals Procedure. If Employee appeals to the Administrator,
Employee or his authorized representative may submit in writing whatever issues
and comments he believes to be pertinent. The Administrator shall reexamine all
facts related to the appeal and make a final determination of whether the denial
of benefits is justified under the circumstances. The Administrator shall advise
Employee in writing of:

        (1)     The Administrator's decision on appeal.

        (2)     The specific reasons for the decision.

        (3)     The specific provisions of the Agreement on which the decision
                is based.

        Notice of the Administrator's decision shall be given within 60 days of
the Claimant's written request for review, unless additional time is required
due to special circumstances. In no event shall the Administrator render a
decision on an appeal later than 120 days after receiving a request for a
review.

                            ARTICLE V. GENERAL TERMS

        SECTION 5.1 NOTICES. All notices and other communications hereunder will
be in writing or by written telecommunication, and will be deemed to have been
duly given if delivered personally or if sent by overnight courier or by written
telecommunication, to the relevant address set forth below, or to such other
address as the recipient of such notice or communication will have specified to
the other party hereto in accordance with this Section:

         If to the Company to:

         Province Healthcare Company
         105 Westwood Place, Suite 400
         Brentwood, Tennessee 37027
         Attn:  Howard T. Wall, III,
                Senior Vice President and General Counsel

         If to Employee, to:

         Stephen M. Ray
         Province Healthcare Company
         105 Westwood Place, Suite 400
         Brentwood, TN 37027

        SECTION 5.2 WITHHOLDING; NO OFFSET. All payments required to be made by
the Company under this Agreement to Employee will be subject to the withholding
of such amounts, if any, relating to federal, state and local taxes as may be
required by law. No payment under this Agreement will be subject to offset or
reduction attributable to any amount Employee may owe to the Company or any
other person, except as required by law.

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        SECTION 5.3 ERISA RIGHTS AND INFORMATION. Attached hereto as Appendix A
is a description of certain ERISA rights and other information applicable to
this Agreement.

        SECTION 5.4 ENTIRE AGREEMENT; MODIFICATION. This Agreement and its
attachments constitute the complete and entire agreement between the parties
with respect to the subject matter hereof and supersedes all prior agreements
between the parties. The parties have executed this Agreement based upon the
express terms and provisions set forth herein and have not relied on any
communications or representations, oral or written, which are not set forth in
this Agreement.

        SECTION 5.5 AMENDMENT. This Agreement may not be modified by an
subsequent agreement unless the modifying agreement: (i) is in writing; (ii)
contains an express provision referencing this Agreement; (iii) is signed and
executed on behalf of the Company by an officer of the Company other than
Employee; and (v) is signed by Employee.

        SECTION 5.6 CHOICE OF LAW. This Agreement and the performance hereof
will be construed and governed in accordance with the laws of the State of
Tennessee, without regard to its choice of law principles, except to the extent
that federal law controls or preempts state law.

        SECTION 5.7 SUCCESSORS AND ASSIGNS. The obligations, duties and
responsibilities of Employee under this Agreement are personal and shall not be
assignable. In the event of Employee's death or disability, this Agreement shall
be enforceable by Employee's estate, executors or legal representatives. The
obligations, duties and responsibilities of Company hereunder shall be binding
upon any successor of the Company (whether through a transaction described as a
Change in Control or otherwise).

        SECTION 5.8 WAIVER OF PROVISIONS. Any waiver of any terms and conditions
hereof must be in writing and signed by the parties hereto. The waiver of any of
the terms and conditions of this Agreement shall not be construed as a waiver of
any subsequent breach of the same or any other terms and conditions hereof.

        SECTION 5.9 SEVERABILITY. The provisions of this Agreement and the
amount of Benefits payable hereunder shall be deemed severable, and if any
portion shall be held invalid, illegal or enforceable for any reason, the
remainder of this Agreement and/or Benefit payment shall be effective and
binding upon the parties.

        SECTION 5.10 COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which will be deemed an original, and all of which
together will constitute one and the same instrument.

<PAGE>

        IN WITNESS WHEREOF, Company and Employee have caused this Agreement to
be executed on the day and year indicated below to be effective on the day and
year first written above.

EMPLOYEE:

/s/ Stephen M. Ray                                  January 1, 2002
----------------------------------          -----------------------------
STEPHEN M. RAY                                           Date

COMPANY:

PROVINCE HEALTHCARE COMPANY

By: /s/ Martin S. Rash                              January 1, 2002
   -------------------------------          -----------------------------
                                                         Date
Its: Chief Executive Officer
    ------------------------------

<PAGE>

                                                                      APPENDIX A

                          ERISA RIGHTS AND INFORMATION

        The parties acknowledge that the following information is provided to
Employee hereunder in connection with Employee's rights as a welfare plan
participant under ERISA. The terms "you" and "yours" refer to Employee.

        As a participant in a welfare plan maintained by the Company, you are
entitled to certain rights and protections under ERISA. ERISA provides that all
plan participants shall be entitled to:

-       Examine, without charge, at the Administrator's office and at other
        specified locations, all plan documents, including insurance contracts,
        and copies of all documents filed by the plan with the U.S. Department
        of Labor, such as detailed annual reports and plan descriptions.

-       Obtain copies of all plan documents and other plan information upon
        written request to the Administrator. The Administrator may make a
        reasonable charge for the copies.

-       Receive a summary of the plan's annual financial report. The
        Administrator is required by law to furnish each participant with a copy
        of this summary annual report.

        In addition to creating rights for plan participants, ERISA imposes
duties upon the people who are responsible for the operation of the employee
benefit plan. The people who operate your plan, called "fiduciaries" of the
plan, have a duty to do so prudently and in the interest of you and other plan
participants and beneficiaries. No one, including the Company or any other
person, may fire you or otherwise discriminate against you in any way to prevent
you from obtaining a benefit under this plan or from exercising your rights
under ERISA.

        If a claim for a Benefit is denied in whole or in part, you must receive
a written explanation of the reason for the denial. You have the right to have
the Administrator review and reconsider your claim.

        Under ERISA, there are steps you can take to enforce the above rights.
For instance, if you request materials from the plan and do not receive them
within 30 days, you may file suit in a federal court. In such a case, the court
may require the Administrator to provide the materials and pay you up to $100 a
day until you receive the materials, unless the materials were not sent because
of reasons beyond the control of the Administrator.

        If you have a claim for benefits that is denied or ignored, in whole or
in part, you may file suit in a state or federal court. If it should happen that
plan fiduciaries misuse the plan's money or if you are discriminated against for
asserting your rights, you may seek assistance from the U.S. Department of Labor
or you may file suit in a federal court. The court will decide who should pay
court costs and fees. If you lose, the court may order you to pay these costs
and fees, for example, if it finds your claim is frivolous.

<PAGE>

        If you have any questions about your plan, you should contact the
Administrator. If you have any questions about this statement or about your
rights under ERISA, you should contact the nearest Area Office of the U.S.
Labor-Management Services Administration, Department of Labor.

                          SUMMARY OF ERISA INFORMATION

Name of Plan: Province Healthcare Company Executive Severance Plan

Name and Address of the Company:

         Province Healthcare Company
         105 Westwood Place, Suite 400
         Brentwood, Tennessee 37027

Who Pays for the Plan: The cost of the plan is paid entirely by the Company.

The Company's Employer Identification No.:  62-1710772

Plan Number: 599

Plan Year: January 1 to December 31

Plan Administrator, Name, Address and Telephone No.:

       Administrator of the Province Healthcare Company Executive Severance Plan
       c/o _____________
       Province Healthcare Company
       105 Westwood Place, Suite 400
       Brentwood, Tennessee 37027
       (615) 370-1377

Agent for Service of Legal Process on             Chief Executive Officer or
the Plan:                                         Administrator.

Benefits are paid out of the general assets of the Company. The Company may, in
its discretion establish a "grantor trust" to fund the payment of Benefits.
Otherwise, this plan does not give you any rights to any particular assets of
the Company. Cash amounts paid under a severance plan are generally considered
taxable income to the recipient.<PAGE>

                                                                    EXHIBIT 10.2

                        GEORGIA-CAROLINA BANCSHARES, INC.
                             1997 STOCK OPTION PLAN

                                   1. PURPOSE

         The purpose of the Georgia-Carolina Bancshares, Inc. 1997 Stock Option
Plan (the "Plan") is to encourage and enable eligible directors, officers and
key employees of Georgia-Carolina Bancshares, Inc. (the "Company") and its
Subsidiary to acquire proprietary interests in the Company, through the
ownership of Common Stock of the Company. The Company believes that directors,
officers and key employees who participate in the Plan will have a closer
identification with the Company by virtue of their ability as shareholders to
participate in the Company's growth and earnings. The Plan also is designed to
provide motivation for participating directors, officers and key employees to
remain in the employ of and to give greater effort on behalf of the Company and
its Subsidiary. It is the intention of the Company that the Plan provide for the
award of incentive stock options qualified under Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code") and the regulations promulgated
thereunder, as well as the award of nonqualified stock options. Accordingly, the
provisions of the Plan related to incentive stock options shall be construed so
as to extend and limit participation in a manner consistent with the
requirements of Section 422 of the Code.

                                 2. DEFINITIONS

         The following words or terms shall have the following meanings:

         (a)      "Agreement" shall mean a stock option agreement between the
                  Company and an Eligible Employee or Eligible Participant
                  pursuant to the terms of this Plan.

         (b)      "Board of Directors" shall mean the Board of Directors of the
                  Company.

         (c)      "Committee" shall mean the committee appointed by the Board of
                  Directors for the purpose of administering the Plan, which
                  committee shall at all times consist of two or more
                  Non-Employee Directors.

         (d)      "Company" shall mean Georgia-Carolina Bancshares, Inc., a
                  corporation chartered under the laws of the State of Georgia.

         (e)      "Eligible Employee(s)" shall mean key employees regularly
                  employed by the Company or a Subsidiary (including officers,
                  whether or not they are directors) as the Board of Directors
                  or the Committee shall select from time to time.

         (f)      "Eligible Participant(s)" shall mean an Eligible Employee, a
                  Non-Employee Director or consultants or advisors who are not
                  employees of the Company or a Subsidiary but who are providing
                  actual services to the Company or a Subsidiary.

<PAGE>

         (g)      "Market Price" shall mean the fair market value of the
                  Company's Common Stock as determined by the Board of Directors
                  or the Committee, acting in good faith, under any method
                  consistent with the Code, or Treasury Regulations thereunder,
                  which the Board of Directors or the Committee shall in its
                  discretion select and apply at the time of the grant of the
                  option concerned. Subject to the foregoing, the Board of
                  Directors or the Committee, in fixing the market price, shall
                  have full authority and discretion and be fully protected in
                  doing so.

         (h)      "Non-Employee Director(s)" means a member of the Board of
                  Directors or a member of the board of directors of a
                  Subsidiary, in each case, who is not a regular salaried
                  employee of the Company or one of its Subsidiaries. As it
                  relates to members of the Committee as such term is defined in
                  this Section 2 and for the purpose of Section 9 of the Plan,
                  "Non-Employee Director" shall have the meaning set forth in
                  Rule 16b-3(b)(3) under the Securities Exchange Act of 1934, as
                  amended.

         (i)      "Optionee" shall mean an Eligible Employee or Eligible
                  Participant having a right to purchase Common Stock pursuant
                  to the Plan.

         (j)      "Option(s)" shall mean the right or rights granted to Eligible
                  Employees or Eligible Participants to purchase Common Stock
                  under the Plan.

         (k)      "Permanent and total disability" shall be as defined in
                  Section 22(e)(3) of the Code.

         (l)      "Plan" shall mean this Georgia-Carolina Bancshares, Inc. 1997
                  Stock Option Plan.

         (m)      "Shares," "Stock" or "Common Stock" shall mean shares of the
                  $.001 par value common stock of the Company.

         (n)      "Subsidiary" shall mean any state banking association, if the
                  Company owns or controls, directly or indirectly, more than a
                  majority of the voting stock of such corporation.

         (o)      "Ten Percent Owner" shall mean an individual who, at the time
                  an Option is granted, owns directly or indirectly (under the
                  ownership attribution rules of Code Section 424(d)) more than
                  ten percent (10%) of the total combined voting power of all
                  classes of stock of the Company or a Subsidiary.

                                3. EFFECTIVE DATE

         The effective date of the Plan (the "Effective Date") shall be the date
the Plan is adopted by the Board of Directors or the date the Plan is approved
by the shareholders of the Company, whichever is earlier. The Plan must be
approved by the affirmative vote of not less than a majority of the Shares
entitled to vote at a meeting at which a quorum is present, which shareholder
vote must be taken within twelve (12) months after the date the Plan is adopted
by the Board of Directors. Such shareholder vote shall not alter the Effective
Date of the Plan. In the event shareholder approval of the adoption of the Plan
is not obtained within the aforesaid twelve (12) month period, then any Options
granted in the intervening period shall be void.

                                       2
<PAGE>

                           4. SHARES RESERVED FOR PLAN

         The Common Stock to be sold to Eligible Participants under the Plan may
at the election of the Board of Directors be either treasury shares or Shares
originally issued for such purpose. The maximum number of Shares which shall be
reserved and made available for sale under the Plan shall be 100,000; provided,
however, that such Shares shall be subject to the adjustments provided in
Section 8(h). Any Shares subject to an Option which for any reason expires or is
terminated unexercised may again be subject to an Option under the Plan.

                          5. ADMINISTRATION OF THE PLAN

         The Plan shall be administered by the Board of Directors or the
Committee.

         Within the limitations described herein and except as otherwise
provided in the Plan, the Board of Directors or the Committee shall administer
the Plan, select the Eligible Participants to whom Options will be granted,
determine the number of Shares to be optioned to each Eligible Participant and
interpret, construe and implement the provisions of the Plan. The Board of
Directors or the Committee shall also determine the price to be paid for the
Shares upon exercise of each Option, the period within which each Option may be
exercised, and the terms and conditions, consistent with the terms of the Plan,
of each Option granted pursuant to the Plan. The Board of Directors and
Committee members shall be reimbursed for out-of-pocket expenses reasonably
incurred in the administration of the Plan.

         If the Plan is administered by the Board of Directors, a majority of
the members of the Board of Directors shall constitute a quorum, and the act of
a majority of the members of the Board of Directors present at any meeting at
which a quorum is present, or acts approved in writing by all members of the
Board of Directors shall be the acts of the Board of Directors. If the Plan is
administered by the Committee, a majority of the members of the Committee shall
constitute a quorum, and the acts of a majority of the members present at any
meeting at which a quorum is present, or acts approved in writing by all of the
members of the Committee shall be the acts of the Committee.

                                 6. ELIGIBILITY

         Options granted pursuant to Section 8 shall be granted only to Eligible
Employees. Options granted pursuant to Section 9 may be granted to Eligible
Participants.

                             7. DURATION OF THE PLAN

         The Plan shall expire on the tenth anniversary of the Effective Date,
but with respect to Options granted hereunder prior to such date, shall remain
in effect until all Shares subject to or which may become subject to the Plan
shall have been purchased pursuant to such Options; provided that Options under
the Plan must be granted within ten (10) years from the Effective Date.

                                       3
<PAGE>

                      8. QUALIFIED INCENTIVE STOCK OPTIONS

         It is intended that Options granted under this Section 8 shall be
qualified incentive stock options under the provisions of Section 422 of the
Code and the regulations thereunder or corresponding provisions of subsequent
revenue laws and regulations in effect at the time such Options are granted.
Such Options shall be evidenced by Agreements in such form and not inconsistent
with this Plan as the Committee or the Board of Directors shall approve from
time to time, which Agreements shall contain in substance the following terms
and conditions:

         (a)      Price. The purchase price for Shares purchased upon exercise
                  will be equal to 100% of the Market Price on the day the
                  Option is granted, as determined by the Board of Directors or
                  the Committee; provided that the purchase price of Stock
                  deliverable upon the exercise of a qualified incentive stock
                  option granted to a Ten Percent Owner shall be not less than
                  one hundred ten percent (110%) of the Market Price on the day
                  the Option is granted, as determined by the Board of Directors
                  or the Committee, but in no case less than the par value of
                  such Stock.

         (b)      Number of Shares. The Agreement shall specify the number of
                  Shares which the Optionee may purchase under such Option.

         (c)      Exercise of Options. The Shares subject to the Option may be
                  purchased in whole or in part by the Optionee in accordance
                  with the terms of the Agreement, from time to time after
                  shareholder approval of the Plan, but in no event later than
                  ten (10) years from the date of grant of the Option.
                  Notwithstanding the foregoing, Shares subject to an Option
                  granted to a Ten Percent Owner shall be exercisable no later
                  than five (5) years from the date of grant of the Option.

         (d)      Medium and Time of Payment. Stock purchased pursuant to an
                  Agreement shall be paid for in full at the time of purchase.
                  Payment of the purchase price shall be in cash. Upon receipt
                  of payment, the Company shall, without transfer or issue tax,
                  deliver to the Optionee (or other person entitled to exercise
                  the Option) a certificate or certificates for such Shares.

         (e)      Rights as a Shareholder. An Optionee shall have no rights as a
                  shareholder with respect to any Shares covered by an Option
                  until the date of issuance of the stock certificate to the
                  Optionee for such Shares. Except as otherwise expressly
                  provided in the Plan, no adjustments shall be made for
                  dividends (ordinary or extraordinary, whether in cash,
                  securities or other property) or distributions or other rights
                  for which the record date is prior to the date such stock
                  certificate is issued.

         (f)      Non-assignability of Option. No Option shall be assignable or
                  transferable by the Optionee except by will or by the laws of
                  descent and distribution. During the lifetime of the Optionee,
                  the Option shall be exercisable only by him or her.

         (g)      Effect of Termination of Employment or Death. In the event
                  that an Optionee during his or her lifetime ceases to be an
                  employee of the Company or of a Subsidiary for any reason
                  (including retirement) other than death or permanent and total
                  disability, any Option or unexercised portion thereof which
                  was otherwise exercisable on the date of termination of
                  employment shall expire 90 days from the date of such
                  termination, but in no event after the term provided in the

                                       4
<PAGE>

                  Optionee's Agreement. In the event that an Optionee ceases to
                  be an employee of the Company or a Subsidiary for any reason
                  (including retirement) other than death or permanent and total
                  disability prior to the time that an Option or portion thereof
                  becomes exercisable, such Option or portion thereof which is
                  not then exercisable shall terminate and be null and void.
                  Whether authorized leave of absence for military or government
                  service shall constitute termination of employment for the
                  purpose of this Plan shall be determined by the Board of
                  Directors or the Committee, which determination shall be final
                  and conclusive.

         In the event that an Optionee ceases to be an employee of the Company
or a Subsidiary by reason of death or permanent and total disability, any Option
or unexercised portion thereof which was otherwise exercisable on the date such
Optionee ceased employment shall expire unless exercised within a period of one
(1) year from the date on which the Optionee ceased to be an employee, but in no
event after the term provided in the Optionee's Agreement. In the event that an
Optionee ceases to be an employee of the Company or a Subsidiary by reason of
death or permanent and total disability, any Option or portion thereof which was
not exercisable on the date such Optionee ceased employment shall become
immediately exercisable for a period of one (1) year from the date on which the
Optionee ceased to be an employee, but in no event after the term provided in
the Optionee's Agreement.

         In the event of the death of an Optionee, the Option shall be
exercisable by his or her personal representatives, heirs or legatees, as
provided herein.

         (h)      Recapitalization. In the event that dividends are payable in
                  Common Stock of the Company or in the event there are splits,
                  subdivisions or combinations of the Common Stock, the number
                  of Shares available under the Plan shall be increased or
                  decreased proportionately, as the case may be, and the number
                  and Option exercise price of Shares deliverable upon the
                  exercise thereafter of any Option theretofore granted shall be
                  increased or decreased proportionately, as the case may be, as
                  determined to be proper and appropriate by the Board of
                  Directors or the Committee.

         (i)      Reorganization. In case the Company is merged or consolidated
                  with another corporation and the Company is not the surviving
                  corporation, or in case the property or stock of the Company
                  is acquired by another corporation, or in case of a
                  separation, reorganization, recapitalization or liquidation of
                  the Company, the Board of Directors of the Company, or the
                  Board of Directors of any corporation assuming the obligations
                  of the Company hereunder, shall either (i) make appropriate
                  provision for the protection of any outstanding Options by the
                  substitution on an equitable basis of appropriate stock of the
                  Company, or of the merged, consolidated or otherwise
                  reorganized corporation which will be issuable in respect to
                  the Common Stock, provided only that the excess of the
                  aggregate fair market value of the Shares subject to Option
                  immediately after such substitution over the purchase price
                  thereof is not more than the excess of the aggregate fair
                  market value of the Shares subject to Option immediately
                  before such substitution over the purchase price thereof, or
                  (ii) upon written notice to the Optionee provide that the
                  Option (including, in the discretion of the Board of
                  Directors, any portion of such Option which is not then
                  exercisable) must be exercised within sixty (60) days of the
                  date of such notice or it will be terminated. If any
                  adjustment under this Section 8(i) would create a fractional
                  share of Stock or a right to acquire a fractional share, such
                  shall be disregarded and the number of Shares available under
                  the Plan and the number of Shares covered under any Options
                  previously granted pursuant to the Plan shall be the

                                       5
<PAGE>

                  next lower number of Shares, rounding all fractions downward.
                  An adjustment made under this Section 8(i) by the Board of
                  Directors shall be conclusive and binding on all affected
                  persons.

         Except as otherwise expressly provided in this Plan, the Optionee shall
have no rights by reason of any subdivision or consolidation of shares of stock
of any class, or the payment of any stock dividend or any other increase or
decrease in the number of shares of stock of any class, or by reason of any
dissolution, liquidation, merger, or consolidation or spin-off of assets or
stock of another corporation; and any issue by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall
not affect, and no adjustment by reason thereof shall be made with respect to,
the number or prices of Common Stock subject to an Option.

         The grant of an Option pursuant to the Plan shall not affect in any way
the right or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure or to merge or
to consolidate or to dissolve, liquidate or sell, or transfer all or any part of
its business or assets.

         (j)      Annual Limitation. The aggregate fair market value (determined
                  at the time the Option is granted) of the Shares with respect
                  to which qualified incentive stock options are exercisable for
                  the first time by an Optionee during any calendar year (under
                  all incentive stock option plans of the Company) shall not
                  exceed $100,000. Any excess over such amount shall be deemed
                  to be related to and part of a nonqualified stock option
                  granted pursuant to Section 9 of the Plan.

         (k)      General Restriction. Each Option shall be subject to the
                  requirement that if at any time the Board of Directors shall
                  determine, in its discretion, that the listing, registration
                  or qualification of the Shares subject to such Option upon any
                  securities exchange or under any state or federal law, or the
                  consent or approval of any government regulatory body, is
                  necessary or desirable as a condition of, or in connection
                  with, the granting of such Option or the issue or purchase of
                  Shares thereunder, such Option may not be exercised in whole
                  or in part unless such listing, registration, qualification,
                  consent or approval shall have been effected or obtained free
                  of any conditions not acceptable to the Board of Directors.
                  Alternatively, such Options shall be issued and exercisable
                  only upon such terms and conditions and with such restrictions
                  as shall be necessary or appropriate to effect exemption from
                  such listing, registration, or other qualification
                  requirement.

                          9. NONQUALIFIED STOCK OPTIONS

         (a)      Within the limitations described in Section 9(b), the Board of
                  Directors or the Committee may grant to Eligible Participants
                  Options under the Plan which are not qualified incentive stock
                  options under the provisions of Section 422 of the Code. Such
                  nonqualified stock options shall be evidenced by Agreements in
                  such form and not inconsistent with this Plan as the Board of
                  Directors or the Committee shall approve from time to time,
                  which Agreements shall contain in substance the same terms and
                  conditions as set forth in Section 8 hereof with respect to
                  qualified incentive stock options (except that, with respect
                  to Options awarded to Non-Employee Directors, references to
                  employment with the Company shall be deemed to mean service on
                  the Board of Directors); provided, however, that the
                  limitations set forth in Sections 8(a) and 8(c) with respect
                  to Ten Percent Owners shall not be applicable to nonqualified
                  stock options granted to any Ten Percent Owner, and the
                  limitation set forth in Section 8(j) with respect to the
                  annual limitation of

                                       6
<PAGE>

                  incentive stock options shall not be applicable to
                  nonqualified stock option grants; provided further, that
                  nonqualified stock options may be granted at a purchase price
                  equal to not less than 75% of the Market Price on the day the
                  Option is granted.

         (b)      With respect to Non-Employee Directors then serving on the
                  Committee, nonqualified stock options may be granted pursuant
                  to Section 9(a) of the Plan to such Non-Employee Directors
                  only upon authorization and approval by the Board of Directors
                  or the shareholders of the Company; provided that, where the
                  Board of Directors authorizes Option grants under this Section
                  9(b), the Non-Employee Director to receive such Options shall
                  not participate in the Board of Director's authorization of
                  such grant.

                            10. AMENDMENT OF THE PLAN

         The Plan may at any time or from time to time be terminated, modified
or amended by the affirmative vote of not less than a majority of the shares
present and voting thereon by the Company's shareholders at a meeting of the
shareholders at which a quorum is present. The Board of Directors may at any
time and from time to time modify or amend the Plan in any respect, except that
without shareholder approval the Board of Directors may not (1) increase the
maximum number of Shares for which Options may be granted under the Plan (other
than increases due to changes in capitalization as referred to in Section 8(h)
hereof), or (2) extend the maximum period during which Options may be granted or
exercised, or (3) change the class of persons eligible for Options under the
Plan, or (4) otherwise materially modify the requirements as to eligibility for
participation in the Plan. The termination or any modification or amendment of
the Plan shall not, without the written consent of an Optionee, affect his or
her rights under an Option or right previously granted to him or her. With the
written consent of the Optionee affected, the Board of Directors or the
Committee may amend outstanding Agreements in a manner not inconsistent with the
Plan. Without employee consent, the Board of Directors or the Committee may at
any time and from time to time modify or amend outstanding Agreements in such
respects as it shall deem necessary in order that incentive stock options
granted hereunder shall comply with the appropriate provisions of the Code and
regulations thereunder which are in effect from time to time respecting
qualified incentive stock options. The Board of Directors may also suspend the
granting of Options pursuant to the Plan at any time and may terminate the Plan
at any time; provided, however, no such suspension or termination shall modify
or amend any Option granted before such suspension or termination unless (a) the
affected participant consents in writing to such modification or amendment or
(b) there is a dissolution or liquidation of the Company.

                               11. BINDING EFFECT

         All decisions of the Board of Directors or the Committee involving the
implementation, administration or operation of the Plan or any offering under
the Plan shall be binding on the Company and on all persons eligible or who
become eligible to participate in the Plan.

                            12. APPLICATION OF FUNDS

         The proceeds received by the Company from the sale of Common Stock
pursuant to Options exercised hereunder will be used for general working
capital.

                                       7

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