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Exhibit 10.1 LIFEPOINT HOSPITALS, INC.
INDEMNIFICATION AGREEMENT This
INDEMNIFICATION AGREEMENT is made and entered into as of the 28th
day of August, 2008 (this " Agreement ") by and between
LifePoint Hospitals, Inc., a Delaware corporation (the "
Company "), and [l] (" Indemnitee ").
WHEREAS, the Company desires to
attract and retain the services of highly qualified individuals,
such as Indemnitee, to serve the Company and its related entities;
WHEREAS, in order to induce
Indemnitee to provide, or continue to provide, services to the
Company and its related entities, the Company wishes to provide for
the indemnification of, and the advancement of expenses to,
Indemnitee to the maximum extent permitted by law;
WHEREAS, the Company and Indemnitee
recognize the continued difficulty in obtaining liability insurance
for directors, officers, employees, agents and fiduciaries, the
significant increases in the cost of such insurance and the general
reductions in the coverage of such insurance;
WHEREAS, the Company and Indemnitee
recognize the substantial increase in corporate litigation in
general, subjecting directors, officers, employees, agents and
fiduciaries to expensive litigation risks and the limitations of
coverage of liability insurance;
WHEREAS, the Company and Indemnitee
desire to continue to have in place the additional protection
provided by an indemnification agreement and to provide
indemnification and advancement of Expenses (as defined below) to
Indemnitee to the maximum extent permitted by Delaware law;
WHEREAS, the Board of Directors has
determined that contractual indemnification as set forth herein is
not only reasonable and prudent but also promotes the best
interests of the Company and its stockholders;
WHEREAS, the Company desires and has
requested Indemnitee to serve or continue to serve as a director,
officer, employee, agent or fiduciary of the Company or any other
corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise free from undue concern for unwarranted
claims for damages arising out of or related to such services;
WHEREAS, Indemnitee is willing to
serve, continue to serve or to provide additional service for or on
behalf of the Company on the condition that Indemnitee is furnished
with the indemnity provide for herein; and
WHEREAS, in view of the
considerations set forth above, the Company desires that Indemnitee
shall be indemnified and advanced Expenses by the Company as set
forth herein;
NOW, THEREFORE, the Company and
Indemnitee hereby agree as set forth below:
1. DEFINITIONS . As used
in this Agreement, the following terms shall have the following
meanings:
"
By-laws " means the Second Amended and Restated By-laws of
the Company, as such may be amended.
"
Certificate " means the Amended and Restated Certificate of
Incorporation of the Company, as such may be amended.
"
Corporate Status " describes the status of a person who is
or was a member of the Board of Directors of the Company (the "
Board ") or is or was otherwise a director, officer,
employee or agent or fiduciary of the Company or of any other
corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise which such person is or was serving at the
request of the Company.
"
Disinterested Director " means a director of the Company who
is not and was not a party to the Proceeding in respect of which
indemnification is sought by the Indemnitee.
"
Expenses " shall include attorneys’ fees, retainers,
court costs, transcript costs, fees of experts, filing fees,
witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees,
and all other disbursements or expenses and obligations of any
nature whatsoever paid or incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating,
participating, or being or preparing to be a witness in a
Proceeding.
"
Independent Legal Counsel " means a law firm, or a member of
a law firm, that is experienced in matters of Delaware corporation
law and neither presently is, nor in the past five (5) years
has been, retained to represent: (i) the Company or Indemnitee
in any matter material to either such party (other than with
respect to matters concerning Indemnitee under this Agreement) or
(ii) any other party to the Proceeding giving rise to a claim
for indemnification hereunder. Notwithstanding the foregoing, the
term "Independent Legal Counsel" shall not include any person who,
under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing
either the Company or the Indemnitee in an action to determine the
Indemnitee’s rights under this Agreement.
"
Proceeding " includes any threatened, pending or completed
action, suit, arbitration, proceeding, alternate dispute resolution
mechanism, investigation, inquiry, administrative hearing or any
other actual, threatened or completed proceeding, whether brought
by or in the right of the Company or otherwise and whether civil,
criminal, administrative or investigative, in which an Indemnitee
was, is or will be involved as a party or otherwise, by reason of
(i) the fact that Indemnitee is or was a director, officer,
employee, agent or fiduciary of the Company, (ii) any action
taken by Indemnitee or of any inaction on Indemnitee’s part
while acting in a Corporate Status or (iii) the fact that
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Indemnitee is or was serving at the request of the Company as a
director, officer, employee or agent or fiduciary of another
corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise. Any of the foregoing proceedings
described in the immediately preceding sentence (i) shall be
deemed a Proceeding, whether or not Indemnitee is acting or serving
in any such capacity at the time any liability or expense is
incurred for which indemnification can be provided under this
Agreement and (ii) shall include any Proceeding pending or
threatened on or before the date of this Agreement;
provided , however , that such definition
shall exclude a Proceeding initiated by an Indemnitee pursuant to
Section 9 to enforce Indemnitee’s rights under
this Agreement. For purposes hereof, threatened Proceedings shall
include, without limitation, any proceeding if any person
(including the Company or any governmental agent or agency) who may
attempt to commence such a proceeding has manifested to the
Company, any entity as to which Indemnitee has a Corporate Status,
any director, officer, employee, agent or fiduciary of the Company
or any of the foregoing or Indemnitee (i) an awareness of
facts that such person believes may form the basis for a Proceeding
and (ii) that it may so attempt to commence such a Proceeding,
without regard to whether such manifestation is written, oral or
otherwise or such belief is reasonable.
2. INTERPRETATION OF
AGREEMENT; REQUEST TO SERVE . It is understood and agreed that
the parties hereto intend this Agreement to be interpreted and
enforced so as to provide indemnification, including advancement of
Expenses, to the Indemnitee to the fullest extent now or hereafter
permitted by law. It also is understood and agreed that the parties
intend that the obligations of the Company to provide
indemnification, including advancement of Expenses, shall be
interpreted broadly in favor of providing on a timely basis such
indemnification and advancement of Expenses to Indemnitee in a
manner which favors resolving any disagreements over the right
thereto or procedures therefor in a manner which is prompt and
cost-efficient to Indemnitee. For the avoidance of doubt, in
addition to any separate oral or written confirmation or request
that the Company may make, the Company expressly confirms
(i) that Indemnitee is, or was, serving at the request of the
Company as a director, officer, employee or agent or fiduciary of
(a) any corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise in which the Company owns
or owned at least 25% of the common or preferred equity (or such
percentage of any similar ownership interest) at any time during
any such service or provides or provided to Indemnitee any
compensation for or right to reimbursement of any expenses or costs
in respect of such service and (b) of any employee benefit
plan for the benefit of any officers, directors, employees or
agents of the Company, any of its subsidiaries or any enterprise
described in clause (a) as to which Indemnitee provides any
service, and (ii) that any such service commencing after the
date hereof shall be deemed to be at the request of the Company.
3. INDEMNITY . The
Company hereby agrees to hold harmless and indemnify (including the
advancement of Expenses) the Indemnitee to the fullest extent
authorized or permitted by law, including without limitation, to
the fullest extent authorized by Article Thirteenth of the
Company’s Certificate (" Article Thirteenth ")
as the same exists on the date hereof (or as such Certificate or
the By-laws may hereafter be amended, but only to the extent that
such amendment authorizes or permits the Company to provide broader
indemnification rights than authorized or permitted prior to
such
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amendment). In furtherance of the foregoing indemnification, and
without limiting the generality thereof:
(a)
Proceedings Other Than Proceedings by or in the Right of the
Company . Indemnitee shall be entitled to the rights of
indemnification provided in this Section 3(a) if, by
reason of Indemnitee’s Corporate Status, Indemnitee is, or is
threatened to be made, a party to or participant in any Proceeding
(including Proceedings arising out of or relating to
Indemnitee’s Corporate Status) other than a Proceeding by or
in the right of the Company. Pursuant to this
Section 3(a) , the Indemnitee shall be indemnified
against all Expenses, judgments, penalties, fines and amounts paid
in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such
Expenses, judgments, penalties, fines or amounts paid in
settlement) actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection with such Proceeding or any
claim, issue or matter therein, if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company and, with respect to
any criminal Proceeding, had no reasonable cause to believe
Indemnitee’s conduct was unlawful.
(b)
Proceedings by or in the Right of the Company . The
Indemnitee shall be entitled to the rights of indemnification
provided in this Section 3(b) if, by reason of
Indemnitee Corporate Status, Indemnitee is, or is threatened to be
made, a party to or participant in any Proceeding (including
Proceedings arising out of or relating to Indemnitee’s
Corporate Status) brought by or in the right of the Company to
procure a judgment in its favor. Pursuant to this
Section 3(b) , the Indemnitee shall be indemnified
against all Expenses actually and reasonably incurred by Indemnitee
or on Indemnitee’s behalf in connection with such Proceeding
if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests
of the Company; provided , however ,
that, if applicable law so provides, no indemnification against
such Expenses shall be made in respect of any claim, issue or
matter in such Proceeding as to which the Indemnitee shall have
been finally adjudged to be liable to the Company unless and to the
extent that the Court of Chancery of the State of Delaware shall
determine that such indemnification may be made.
(c)
Indemnification for Expenses if Indemnitee is a Party Who is
Wholly or Partly Successful . Notwithstanding any other
provision of this Agreement, to the extent that the Indemnitee is,
by reason of Indemnitee’s Corporate Status, a party to and is
successful, on the merits or otherwise, in any Proceeding
(including Proceedings arising out of or relating to
Indemnitee’s Corporate Status), Indemnitee shall be
indemnified to the maximum extent permitted by law against all
Expenses actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection therewith. If the
Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less
than all claims, issues or matters in such Proceeding, the Company
shall indemnify the Indemnitee against all Expenses actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf
in connection with each successfully resolved claim, issue or
matter. For purposes of this Section 3 and without
limitation, the termination of any claim, issue or matter in such a
Proceeding by
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dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.
4. ADDITIONAL INDEMNITY
. In addition to, and without regard to any limitations on, the
indemnification provided for in Section 3 , the Company
shall and hereby does indemnify and hold harmless the Indemnitee
against all Expenses, judgments, penalties, fines and amounts paid
in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such
Expenses, judgments, penalties, fines or amounts paid in
settlement) actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf if, by reason of Indemnitee’s
Corporate Status, Indemnitee is, or is threatened to be made, a
party to or participant in any Proceeding including a Proceeding by
or in the right of the Company and Proceedings arising out at or
relating to Indemnitee’s Corporate Status, and will promptly
advance Expenses to Indemnitee upon request. The only limitation
that shall exist upon the Company’s obligations pursuant to
this Section 4 shall be that the Company shall not be
obligated to make any payment to Indemnitee that is finally
determined (under the procedures, and subject to the presumptions,
set forth in Sections 8 and 9 hereof) to be unlawful or
contrary to public policy. 5.
CONTRIBUTION IN THE EVENT OF JOINT LIABILITY .
(a) Whether
or not the indemnification provided in Sections 3 and 4
hereof is available, in respect of any Proceeding in which the
Company is jointly liable with Indemnitee (or would be if joined in
such Proceeding), Company shall pay the entire amount of any
judgment, penalty, fine or settlement (including all interest,
assessments and other charges paid or payable in connection with or
in respect of such Expenses, judgments, penalties, fines or amounts
paid in settlement) of such Proceeding without requiring Indemnitee
to contribute to such payment and the Company hereby waives and
relinquishes any right of contribution it may have against
Indemnitee. The Company shall not enter into any settlement of any
Proceeding in which the Company is jointly liable with Indemnitee
(or would be if joined in such Proceeding) unless such settlement
provides for a full and final release of all claims asserted
against Indemnitee.
(b) Without
diminishing or impairing the obligations of the Company set forth
in the preceding subparagraph, if, for any reason, Indemnitee shall
elect or be required to pay all or any portion of any judgment or
settlement in any threatened, pending or completed Proceeding in
which the Company is jointly liable with Indemnitee (or would be if
joined in such Proceeding), the Company shall contribute an amount
equal to 100% of the amount of Expenses, judgments, penalties,
fines and amounts paid in settlement (including all interest,
assessments and other charges paid or payable in connection with or
in respect of such Expenses, judgments, penalties, fines or amounts
paid in settlement) actually and reasonably incurred and paid or
payable by Indemnitee. If the Company is prohibited by law from
paying 100% of such Expenses, judgments, penalties, fines and
amounts, then the Company shall contribute to the amount of
Expenses, judgments, penalties, fines and amounts paid in
settlement (including all interest, assessments and other charges
paid or payable in connection with or in respect of such Expenses,
judgments, penalties, fines or amounts paid in settlement) actually
and
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reasonably incurred and paid or payable by Indemnitee in
proportion to the relative benefits received by the Company and all
officers, directors or employees of the Company other than
Indemnitee who are jointly liable with Indemnitee (or would be if
joined in such Proceeding), on the one hand, and Indemnitee, on the
other hand, from the transaction from which such Proceeding arose;
provided , however , that the
proportion determined on the basis of relative benefit may, to the
extent necessary to conform to law, be further adjusted by
reference to the relative fault of the Company and all officers,
directors or employees of the Company other than Indemnitee who are
jointly liable with Indemnitee (or would be if joined in such
Proceeding), on the one hand, and Indemnitee, on the other hand, in
connection with the events that resulted in such Expenses,
judgments, penalties, fines or settlement amounts (including all
interest, assessments and other charges paid or payable in
connection with or in respect of such Expenses, judgments,
penalties, fines or amounts paid in settlement), as well as any
other equitable considerations which the law may require to be
considered. The relative fault of the Company and all officers,
directors or employees of the Company other than Indemnitee who are
jointly liable with Indemnitee (or would be if joined in such
Proceeding), on the one hand, and Indemnitee, on the other hand,
shall be determined by reference to, among other things, the degree
to which their actions were motivated by intent to gain personal
profit or advantage, the degree to which their liability is primary
or secondary, and the degree to which their conduct is active or
passive.
(c) To
the maximum extent permitted by law, the Company shall indemnify
and hold Indemnitee harmless from any claims of contribution which
may be brought by officers, directors, employees, agents or
fiduciaries of the Company who may be jointly liable with
Indemnitee, including claims of contribution for Expenses,
judgments, penalties, fines and amounts paid in settlement
(including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses,
judgments, penalties, fines or amounts paid in settlement).
(d) To
the extent relevant, all presumptions and burdens of proof and
persuasion set forth in this Agreement that affect determinations
as to the right to indemnification shall be applicable similarly to
any determination or obligation as to matters of contribution
pursuant to this Section 5 .
6. INDEMNIFICATION FOR
EXPENSES OF A WITNESS . Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of
Indemnitee’s Corporate Status (or arising out of the same or
relating thereto), a witness in any Proceeding to which Indemnitee
is not a party, the Company shall indemnify the Indemnitee against
all Expenses actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection therewith.
7. ADVANCEMENT OF
EXPENSES .
(a) Notwithstanding
any other provision of this Agreement, the Company shall advance
all reasonable Expenses incurred by or on behalf of Indemnitee in
connection with any Proceeding by reason of Indemnitee’s
Corporate Status (including any Proceeding arising out of or
relating to Indemnitee’s Corporate Status) within fifteen
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(15) days after the receipt by the Company of a written
statement or statements from Indemnitee requesting such advance or
advances from time to time, whether prior to or after final
disposition of such Proceeding. Such statement or statements shall
reasonably evidence the Expenses incurred by Indemnitee and shall
be preceded or accompanied by an undertaking in the form attached
hereto as Exhibit A , manually executed by Indemnitee.
(b) The
Company shall not, as a condition precedent to or otherwise in
connection with any request to advance Expenses, assert any right
to any condition, covenant, undertaking, agreement, warranty or
other term not set forth in Section 7(a) or in
Exhibit A hereto. Any advances and undertakings to
repay pursuant to this Section 7 shall be unsecured and
interest free.
(c) Notwithstanding
anything herein or in Exhibit A , the Certificate or
the By-laws to the contrary, the Company shall not make or seek to
make any determination that Indemnitee is not permitted to be
indemnified in respect of a Proceeding under applicable law unless
(i) Indemnitee has expressly requested to be indemnified
pursuant to Section 8(a) of this Agreement or
Article Thirteenth; (ii) Indemnitee has not so requested
on or before the 90th day prior to the expiration of the statute of
limitations in respect of the claim for indemnification in respect
of the Proceeding for which indemnification may be sought; or
(iii) a final determination of a court of competent
jurisdiction is made with respect to the Proceeding for which
indemnification may be sought (as to which all rights of appeal
have been exhausted or lapsed).
8. PROCEDURES AND
PRESUMPTIONS FOR DETERMINATION OF ENTITLEMENT TO
INDEMNIFICATION . To better ensure that the intentions of the
parties hereto are achieved, the parties agree that the following
procedures and presumptions shall apply in the event of any
question as to whether Indemnitee is entitled to indemnification
under this Agreement:
(a) To
obtain indemnification under this Agreement which may, at the
option of Indemnitee, include indemnification under
Article Thirteenth, Indemnitee shall submit to the Company a
written request for the same, together with a brief summary of the
Proceeding as to which indemnification is sought. The Secretary of
the Company shall, promptly upon receipt of such a request for
indemnification, advise the Board in writing that Indemnitee has
requested indemnification.
(b) Upon
written request by Indemnitee for indemnification pursuant to the
first sentence of Section 8(a) hereof, other than a
request solely for advancement of Expenses pursuant to
Section 7(a) , a determination, if (but only if)
required by applicable law, with respect to Indemnitee’s
entitlement thereto shall be made in the specific case by one of
the following three methods, which shall be at the election of
Indemnitee to the extent permitted by law: (i) by a majority
vote of the Disinterested Directors, even though less than a
quorum, or (ii) by Independent Legal Counsel in a written
opinion, or (iii)
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