Document:

exv10w2

 

Exhibit 10.2

Phase — 1 Consulting Agreement

Article 1

SCOPE OF PROJECT DEVELOPMENT AND PRELIMINARY

ENGINEERING SERVICES

This Phase – 1 Consulting Agreement (“the Agreement”) executed as of May 23, 2007 will confirm
the engagement of Agra Industries, Inc., having a place of business at 1211 West Water Street,
Merrill, Wisconsin 54452, a Wisconsin corporation (Consultant), and Ozark Ethanol, LLC, having a
place of business at 300 West Kneeland Street, Liberal, Missouri a Delaware limited liability
company (Client), for the purpose of evaluation and development of a proposed 50 mmgy (undenatured)
dry corn ethanol producing plant (hereafter referred to as the “Project.”

Client hereby retains Consultant and/or its divisions Merrill Fab, Inc. and Agra Construction, Co.,
hereafter known jointly as Agra Industries, Inc. and hereafter referred to as “Consultant,” hereby
agrees to provide per the terms of this agreement, the services described in this Section 1.1 to
help Client develop the Project.

     1.1 Basic Project Development Services: Agra shall:

1.1.1 Work with the Client to define Project specifications.

1.1.2 Assist in developing Project roles and responsibilities for all parties.

1.1.3 Develop a preliminary general Project Arrangement Drawings based on the
selected alternatives, site physical and geo-technical data provided by the Client.
These drawings shall comprise a customary Phase I Civil Engineering Package and
shall include, without limitation, the following component packages:

	 	(a)	 	Civil site plan showing all horizontal
control points;
	 
	 	(b)	 	Grading package;
	 
	 	(c)	 	Drainage package;
	 
	 	(d)	 	Erosion control package;
	 
	 	(e)	 	Subsurface package, including compaction,
surcharge and restoration data;
	 
	 	(f)	 	Utility package. including water, wells,
fire control, electricity and natural gas;
	 
	 	(g)	 	Road access package; and
	 
	 	(h)	 	Rail access package.

Drawings shall show key elevation points and other data customarily required in
such drawings. The drawings shall be coordinated with

 

 

consultants and other contractors identified by the Client and shall reflect
information provided to Client regarding utility, road and rail entry points to the
site.

1.1.4 Consultant shall assist Client in selecting an Architect for the project,
shall evaluate the capability of candidates and shall, together with Client,
approve the selection made. Consultant will coordinate the services provided by
the Architect and the Architect’s consultants with those services provided by the
Client and the Clients’ consultants.

1.1.5 Consultant shall consult with the Client, research applicable criteria,
attend Project meetings, communicate with members of the Project team, and issue
progress reports as requested by the Client.

1.1.6 Consultant will prepare and periodically update a schedule of Site
Evaluations and Planning Services that identifies milestone dates for the decisions
of the Client, services furnished by Consultant, and completion of documentation to
be provided by Consultant. Consultant will coordinate the Site Evaluations and
Planning Services schedule with the Client’s Project Schedule.

1.1.7 Consultant will assist the Client, as requested by the Client, in connection
with the Clients’ responsibility for filing documents required for the approval of
governing and reviewing authorities which have jurisdiction over the Project. These
documents may include plats, replats, property subdivisions, waivers, and variances
for zoning and other development guidelines. Consultant will, as requested by the
Client, analyze the Clients’ building program or programs with respect to the area
required for building: area required for parking, circulation, open space and other
program elements consistent for the purpose of the construction of Ethanol
Producing Plants.

1.1.8 Consultant will analyze the Clients’ site which may consist of: ownership,
on-site observations, circulation systems and parking studies, topography analysis,
studies regarding availability of construction materials, equipment, labor and
construction markets. Consultant will evaluate the site studies to assist the
Client in selecting the Project layout and general arrangements.

1.1.9 Consultant, based on the preliminary site analysis and as requested by the
Client, will prepare conceptual development drawings which may include land
utilization, structure placement, facility development, development phasing, access
and circulation of vehicles, rail system and utility systems. If requested,
Consultant will analyze surface and subsurface conditions, ecological requirements,
deeds, zoning and other legal restrictions, landscaping concepts and features.

 

 

1.1.10 As requested by Client, Consultant will establish requirements and prepare
initial plans for on-site utilities which may include electrical services and
distribution, gas services and distribution, process waste water treatment, storm
water collection and disposal. If requested, Consultant will also analyze the
availability of existing utility mains, transmission and distribution lines.

1.1.11 Consultant shall attend meetings, public hearings, and citizen information
meetings as directed by the Client. As requested by the Client, Consultant may
represent the Client in presenting the proposed development to governing agencies
for approval and/or prepare presentation materials for selection options and
present to the governing agencies at public meetings and hearings.

1.1.12 Consultant will negotiate with the Client in the development and execution
of a Letter of Intent, which is agreeable to both parties, to provide Engineering,
Procurement and Construction services for the complete Project.

1.1.13 Client may utilize Consultant’s experience in the Engineering, Procurement
and Construction of Ethanol Manufacturing Facilities to assist the Client in
determining the EPC Contract price.

Consultant shall continue to develop and make modifications and changes to each of the services
under section 1.1 as necessary or directed by the Client in accordance with changing or evolving
Project plans. Consultant shall provide such services at such times, and according to such
schedule, as is reasonably necessary to support the Client in effective development of the Project.
Other services may be provided by Consultant as are mutually agreed to.

     1.2 Clients’ Responsibilities: The entity that will own the Project, whether it is the Client
or another entity shall hereinafter be referred to as “Client.” In connection with the services to
be provided by Consultant, Client shall be responsible for the performance or delivery of the
following tasks, documents and events:

	 	1.2.1	 	Provide to Consultant, upon its request, such design
decisions and information related to site selection, plant size, interface of
the plant to other sections of the Project, a site topographic survey, a site
geotechnical report, a water analysis and other key Project design parameters
as Consultant may reasonably request from time to time.
	 
	 	1.2.2	 	Create a Project development strategy and timeline, in
cooperation with Consultant, for the purpose of fully defining the Project and
its specifications.

 

 

	 	1.2.3	 	Handle all matters relating to the financing of the Project.
	 
	 	1.2.4	 	Cooperate with Consultant to define the Project
specifications, and define Project development roles for all participating
parties.
	 
	 	1.2.5	 	Otherwise cooperate with Consultant in the development of
the Project.

Consultant’s timely performance of its obligations under Section 1.1 above shall be subject to the
timely performance of the foregoing tasks by Client. The Client shall designate a Project Manager
to serve as Consultant’s primary contact for the work and submittals to be performed and delivered
under this agreement. Consultant shall rely on and shall proceed according to the directions of the
Project Manager or such other individual as the Client may from time to time appoint in writing
with respect to this Agreement. Client shall have final authority with respect to the project and
work to be performed by Consultant.

Upon the execution of this Agreement, Client shall provide Consultant with one hundred fifty
thousand dollars ($150,000.00) payment to be maintained as a separate account entry against which
Consultant is authorized to draw funds in payment of all invoices (“Evergreen Fund”). If this
Agreement is terminated by the Client for any reason all used funds shall be non-refundable,
however, regardless of the amount of funds used, the non-refundable portion of the Evergreen Fund
shall not be less then fifty thousand dollars ($50,000.00). Such amount shall be retained by
Consultant. If Consultant terminates this Agreement for any reason, all unused funds shall be
returned to Client.

Consultant shall charge the Client for labor, per diems, and travel according to Agra’s scheduled
labor rates attached to this Agreement as Exhibit A. Reasonable out-of-pocket expenses, such as,
but not limited to, air fare, rental cars, long distance phone, shall be charged to the Client at
cost. The cost for outside engineering and consulting fees shall be subject to Client’s advance
approval and shall be charged to the Client at cost plus 10%. Invoicing periods shall be every two
(2) weeks. Consultant has provided services and incurred expenses prior to the execution of this
Agreement and may invoice for such services as mentioned above, including the fifty thousand
dollars ($50,000.00) for the original un-executed Consulting Agreement. Agra shall utilize the
Evergreen Fund for the payment of those invoices. Client shall replenish the Evergreen Fund within
ten (10) days of invoicing so the balance of the Evergreen Fund is one hundred fifty thousand
dollars ($150,000.00). If the Evergreen Fund is not replenished within this time period, Consultant
may at its discretion discontinue its work, cancel all work and all open purchase orders, and
demand payment in full.

Either party may terminate this Agreement at any time for any reason upon fifteen (15) days written
notice, delivered to the other party’s principal place of business as mentioned above, postage
pre-paid return receipt required. Client agrees to pay Consultant for all labor, cancellation fees,
and issued purchase orders that cannot be

 

 

cancelled and all cost as mentioned above. This Agreement does not obligate Consultant to do any
work outside the scope of this Agreement.

This Agreement shall be effective upon the date that it is fully executed by both parties hereto,
and shall remain in effect until ether it is replaced by a Letter of Intent or ether party
terminates as mentioned above.

Consultant agrees to hold information provided to it by Client and other consultants and
contractors of Client, and information generated by Consultant for Client under this Agreement, in
confidence for the exclusive benefit of Client.

This Agreement represents the entire understanding and agreement of the parties hereto and may be
modified or waived only in writing expressly so modifying or waiving this Agreement.

Consultant may not assign this Agreement without Client’s prior written consent.

This Agreement shall be governed and construed in accordance with the internal laws of the State of
Missouri, without regard to conflict of laws provisions or principles.

The courts of the State of Missouri shall have exclusive jurisdiction over disputes arising under
this Agreement, and the parties expressly waive any objection to such jurisdiction or venue.

	 	 	 	 	 	 	 
	OZARK ETHANOL, LLC

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Kerry Rose

	 	 	 	Date: June, 27, 2007	 	 
	 	 	 	 	 	 	 
	Kerry Rose President
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	AGRA INDUSTRIES, INC.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Pat Hinner

	 	 	 	Date: June 25, 2007	 	 
	 	 	 	 	 	 	 
	Pat Hinner PresidentEx-10.1

 

Exhibit
10.1

LifePoint Hospitals, Inc.

Change in Control Severance Plan and

Summary Plan Description

Effective June 1, 2002

As Amended and Restated May 9, 2006

 

 

LifePoint Hospitals, Inc.

Change in Control Severance Plan and

Summary Plan Description

table of contents

	 	 	 	 	 
	 	 	Page	 
	Introduction
	 	 	1	 
	 
	 	 	 	 
	Section 1 In General
	 	 	1	 
	 
	 	 	 	 
	Section 2 Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 3 What Benefits Are Provided Under the Plan?
	 	 	3	 
	 
	 	 	 	 
	Section 4 How Do I Become Eligible to Receive Benefits?
	 	 	6	 
	 
	 	 	 	 
	Section 5 How Do I Make a Claim for Benefits?
	 	 	7	 
	 
	 	 	 	 
	Section 6 Can I Lose My Plan Benefits?
	 	 	8	 
	 
	 	 	 	 
	Section 7 What Are My Rights if My Claim for Benefits Is Denied?
	 	 	8	 
	 
	 	 	 	 
	Section 8 May I Assign My Rights Under This Plan?
	 	 	9	 
	 
	 	 	 	 
	Section 9 What Events Can Cause the Plan To Be Changed or Terminated?
	 	 	9	 
	 
	 	 	 	 
	Section 10 Additional Information
	 	 	10	 
	 
	 	 	 	 
	Section 11 What Are My Rights Under ERISA?
	 	 	10	 
	 
	 	 	 	 
	Section 12 Summary of Plan Information
	 	 	11	 
	 
	 	 	 	 
	Exhibit A Eligible Employees
	 	 	13	 

 

 

Introduction

This Plan document is effective May 9, 2006, and is a summary of your benefits, rights and
obligations under the LifePoint Hospitals, Inc. Change in Control Severance Plan (the “Plan”). This
document is intended to comply with both the summary plan description and the written plan
requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and the regulations
issued under ERISA by the United States Department of Labor.

LifePoint Hospitals, Inc. (the “Company”) may generally amend or terminate the Plan at any time
prior to a “change in control” (see definitions). For that reason, all statements in this document
are subject to change at any time prior to a change in control without notice.

The Plan Administrator has the discretion to interpret the provisions of the Plan and make
determinations for the payment of Plan benefits. All such determinations are final, binding and
conclusive.

SECTION 1 In General

The Company has established the Plan with the intention of providing benefits to Eligible Employees
of the Company and its Affiliates under the conditions described in this document. Plan benefits
are intended to provide additional compensation to Eligible Employees whose positions are
eliminated or adversely affected following a change in control of the Company. Therefore, the
amount of your benefit is calculated without regard to your actual period of unemployment following
a change in control, if any.

This document constitutes the entire written Plan. Any oral or other written expressions of the
Plan or related to the Plan or its subject matter are completely superseded by this document.
Except for a formal written Plan amendment that is properly adopted by the Company, or a written
modification authorized under Section 9, any oral or written statements concerning the Plan shall
not modify or add to this Plan document.

As is more fully explained in Section 4, severance benefits are not provided under this Plan if
your employment termination is not connected with a Change in Control.

SECTION 2 Definitions

Defined terms in the Plan are indicated by initial capitalization of the term. References to a
“Section” mean a section of this Plan. Pronouns that refer to one gender include the other gender.
“You” or “your” means you, an individual in the employ of the Company.

     2.1 “Administrator” or “Plan Administrator” means a committee consisting of
the Company’s chief executive officer, the secretary of the Company, the senior 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. The
Administrator has absolute discretion to make all decisions under the Plan, including making
determinations about eligibility for and the amounts of

 

 

Benefits payable under the Plan and interpreting all Plan provisions. All decisions of the
Administrator are final, binding and conclusive. If a Change in Control occurs, as described in
Section 2.5, the members of the Plan Administrator committee shall be the individuals who were
committee members immediately prior to the Change in Control.

     2.2 “Affiliate” means the Company and all corporations, partnerships, trusts and other
entities that are members, with the Company, of a controlled group of corporations or a group of
trades or businesses under common control under Sections 414(b) and (c) of the Internal Revenue
Code and that have been approved by the Company in a writing that identifies the entity as an
“Affiliate” hereunder.

     2.3 “Annual Pay” means:

          (a) the rate of normal annual compensation payable to an Eligible Employee, provided that the
rate shall not be less than the highest rate in effect during the six month period immediately
prior to the time of a Change in Control that gives rise to payment of Benefits to the Eligible
Employee hereunder; and

          (b) the target cash bonus amount which an Eligible Employee would be eligible to receive in
the year in which the Change in Control occurs, assuming that all performance and conditions were
achieved with respect to such bonus, whether or not such conditions are actually achieved.

     2.4 “Benefit” means the severance and other benefits described in Section 3.

     2.5 “Change in Control” shall have the meaning specified in Section 12 of the
LifePoint Hospitals, Inc. 1998 Long-Term Incentive Plan.

     2.6 “Company” means LifePoint Hospitals, Inc. and its successors and assigns.

     2.7 “Eligible Employee” means an Employee who satisfies the eligibility requirements
of Section 4 and is employed in a position identified in Appendix A as Category One or Category
Two. An Employee who is subject to a written employment agreement with the Company or its
Affiliates that expressly provides the Employee is not eligible for this Plan is not an Eligible
Employee

     2.8 “Employee” means an employee of the Company or an Affiliate.

     2.9 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     2.10 “Plan” means the LifePoint Hospitals, Inc. Change in Control Severance Plan.

     2.11 “Successor Employer” means a person or entity that acquires all or any part of
the Company through purchase of assets, purchase of stock, trade of assets or stock, spin-off,
merger or acquisition in a transaction that is a Change in Control, or a person or entity that
acquires control of the Company in any similar type of transaction.

2

 

SECTION 3 What Benefits Are Provided Under the Plan?

     3.1 Severance Benefits: Only Eligible Employees who satisfy the conditions of Section
4 will be entitled to the severance benefits described in this Section 3.1. Benefits will be
determined by reference to the classification of an Eligible Employee at the time of the Change in
Control. Classification shall be determined by reference to Appendix A. The amount of Benefits
payable shall be calculated as follows:

          (a) A lump sum cash payment determined by the following:

               (1) For each Employee in Category One, 3 times Annual Pay.

               (2) For each Employee in Category Two, 1.5 times Annual Pay.

               (3) For an Employee in Category One or Category Two who is subject to a written
employment agreement with the Company or its Affiliates, or is eligible under a severance
policy or arrangement of the Company or its Affiliates, that at the time of a Change in
Control provides for a cash payment upon severance with the Company or its Affiliates, the
amount of the payment shall be the greater of the payment otherwise provided in this Section
3.1(a) or the cash payment specified in such agreement, policy or arrangement.

          (b) Participation in medical, life, disability and similar welfare benefit plans that are
offered to similarly situated employees of the Company, provided that the level of benefits shall
be substantially equivalent to the benefits provided by 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. If benefits are provided pursuant to COBRA continuation rights, the Company
shall waive all premiums that would otherwise be due by the Eligible Employee at the time of
severance for the period that corresponds to the Eligible Employee’s position noted below:

               (1) For each Employee in Category One, 12 months.

               (2) For each Employee in Category Two, 6 months.

               (3) For each Employee in Category One or Category Two who is subject to a written
employment agreement with the Company or its Affiliates, or is eligible under a severance
policy or arrangement of the Company or its Affiliates, that at the time of a Change in
Control provides for non-cash benefits similar to those specified in this Section 3.1(b),
the benefits provided to such Employee shall be the greater of those otherwise provided in
this Section 3.1(b) or those specified in such agreement, policy or arrangement.

          (c) Reasonable attorney’s fees and costs incurred in making a claim for Benefits, including
all costs of arbitration, mediation, or litigation.

3

 

     3.2 Additional Payments For Certain Tax Liabilities. If it is determined that any
payment or distribution by or on behalf of the Company to or for the benefit of an Eligible
Employee as a result of a change in control (whether paid or payable or distributed or
distributable pursuant to the terms of this Plan or otherwise, but determined without regard to any
additional payments required under this Section 3.2) (a “Payment”) would be subject to the excise
tax imposed by section 4999 of the Code, or any interest or penalties are incurred by an Eligible
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”), the Eligible Employee
shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that
after payment by Eligible 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, Eligible
Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments, subject to the following:

          (a) Subject to the provisions of Section 3.2(a)(2), all determinations required to be made
under this Section, 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 a 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
an Eligible Employee unless it delivers to the Eligible 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 the Eligible Employee’s applicable federal income tax return
will not result in the imposition of an accuracy-related or other penalty on the Eligible 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 the Eligible 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 the Eligible Employee a written report setting 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 the Eligible Employee. Any Gross-Up
Payment, as determined pursuant to this Section, shall be paid by the Company to the Eligible
Employee within 15 days of the receipt of the Tax Firm’s determination. Subject to the remainder of
this Section, any determination by the Tax Firm shall be binding upon the Company and the Eligible
Employee; provided, however, that the Eligible 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 3.2.(a)(2) that an Eligible 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 the Eligible
Employee. In determining the reasonableness of Tax Firm’s determinations hereunder, and the effect
thereof, the Eligible Employee shall be provided a reasonable opportunity to review such
determinations with Tax Firm and the Eligible

4

 

Employee’s tax counsel. Tax Firm’s determinations hereunder, and the Tax Opinion, shall not be
deemed reasonable until the Eligible Employee’s reasonable objections and comments thereto have
been satisfactorily accommodated by Tax Firm.

          (b) The Eligible 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 the Eligible 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 the Eligible Employee to notify the Company of such claim
(or to provide any required information with respect thereto) shall not affect any rights granted
to an Eligible Employee under this Section except to the extent that the Company is materially
prejudiced in the defense of such claim as a direct result of such failure. The Eligible 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 the Eligible Employee in writing
prior to the expiration of such period that it desires to contest such claim, the Eligible Employee
shall:

          (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 the Eligible Employee;

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

          (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 the Eligible Employee harmless, on an after-tax basis, for any Excise Tax or income tax
(including interest and penalties with respect thereto) imposed as a result of such representation
and payment of costs and expenses. Without limiting the foregoing provisions of this Section, 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 Eligible Employee to pay the tax claimed and sue for a refund
or contest the claim in any permissible manner, and the Eligible Employee shall 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 the Eligible Employee to pay such claim and sue for a refund, the

5

 

Company shall advance the amount of such payment to the Eligible Employee, on an interest-free
basis and shall indemnify and hold the Eligible 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 the Eligible 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 the Eligible 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.

          (c) If, after the receipt by an Eligible Employee of an amount advanced by the Company
pursuant to Section 3.2(a), the Eligible Employee becomes entitled to receive any refund with
respect to such claim, the Eligible Employee shall (subject to the Company’s complying with the
requirements of Section 3.2(a)(2)) 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 the Eligible Employee of an amount advanced by the Company pursuant to Section 3.2(a), a
determination is made that Eligible Employee is not entitled to a refund with respect to such claim
and the Company does not notify the Eligible Employee in writing of its intent to contest such
denial of refund prior to the expiration of 60 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.

     3.3 Schedule of Payments. The Company will pay cash Benefits described in Section
3.1(a) in a lump sum within 30 days of termination of employment. Benefits described in Section
3.1(b) will be provided periodically under the terms of the applicable benefit plans. Benefits
described in Section 3.1(c) shall be paid within 10 days of notice given by the Eligible Employee
of the amount of costs and expenses that have been incurred that are due to a third-party. The
Benefits described in Section 3.2 will be paid in accordance with the procedures described in
Section 3.2.

SECTION 4 How Do I Become Eligible to Receive Benefits?

You will become entitled to Benefits under the Plan if you are an Eligible Employee and, following
the occurrence of a Change in Control, satisfy any of the conditions described below in this
Section. Determinations of eligibility for Benefits are made by the Administrator. All decisions as
to eligibility, the availability of Benefits under the Plan or the interpretation of the Plan’s
provisions shall be made by the Administrator in its sole and absolute discretion. Such decisions
shall be final, binding and conclusive on all parties.

     4.1 You are not offered employment by the Company or a Successor Employer that is
substantially equivalent to the position you held with the Company immediately prior to the Change
in Control.

6

 

          (a) “Substantially equivalent,” as used in this Section 4, means an employment position that
is the same or better than the position to which it is being compared. This determination shall be
made by the Plan Administrator on the basis of all relevant facts and circumstances, including
compensation, retirement and welfare benefits, fringe benefits, level of responsibility, the
similarity of duties and responsibilities as compared to the Eligible Employee’s position at the
time of the Change in Control, and the amount of time reasonably required to perform the duties of
the position.

          (b) A position is not substantially equivalent unless:

               (1) The cash compensation offered is the same or higher than you earned immediately
prior to the Change in Control; and

               (2) Deferred compensation, incentive and equity compensation, and health and welfare
benefits are, in the aggregate, similar to those provided immediately prior to the Change in
Control; and

               (3) The position does not require the Eligible Employee to relocate or to commute more
than 30 miles each way to the place of employment.

     4.2 Your employment with the Company or, as applicable, a Successor Employer is involuntarily
terminated for any reason within 18 months following a Change in Control for any reason other than
cause. For this purpose, termination for “cause” means that your employment was involuntarily
terminated because: (i) you are convicted of a crime of moral turpitude that adversely affects the
reasonable business interests of the Company, (ii) you committed an act of fraud, embezzlement, or
material dishonesty against the Company or any of its affiliates, or (iii) you intentionally
neglect the responsibilities of your employment, and such neglect remains uncorrected for more than
30 days following written notice from the Company detailing the acts of neglect. The existence of
cause in termination shall be determined by the Committee in its sole discretion; any findings by a
court of law on the actions that gave rise to termination of employment may be considered by the
Committee but are not controlling.

     4.3 You voluntarily terminate employment within 18 months following a Change in Control
because your employment with the Successor Employer is modified so that your position is no longer
“substantially equivalent” (as described in Section 4.1) to the position you held immediately prior
to the time of the Change in Control. An Eligible Employee’s right to voluntarily terminate
employment and obtain Benefits under this Section 4.3 expires 180 days after beginning employment
in the position that is not “substantially equivalent” to Eligible Employee’s prior position.

SECTION 5 How Do I Make a Claim for Benefits?

If your Benefits are not automatically paid to you, you may file a request for Benefits in writing
with the Plan Administrator and a copy to the chief executive officer and/or the board of directors
of the Company.

7

 

SECTION 6 Can I Lose My Plan Benefits?

Generally, you will not be entitled to Plan Benefits if you do not satisfy the eligibility
requirements and conditions stated in Section 4. Failure to timely submit an application for
benefits in writing, as specified in Section 5, will result in a loss of Plan Benefits. You cannot
lose your Benefits if following termination of employment you become employed by the Company or an
Affiliate after Benefits are paid.

SECTION 7 What Are My Rights if My Claim for Benefits Is Denied?

If an Eligible Employee’s claim for Benefits is denied, the Administrator will furnish written
notice of denial to the Eligible Employee making the claim (the “Claimant”) 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 the Claimant 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, the Claimant may deem
the claim denied and seek review according to the appeals procedures set forth below.

     7.1 The notice of denial to the Claimant shall state:

     (a) The specific reasons for the denial;

     (b) Specific references to pertinent provisions of the Plan on which the denial was
based;

     (c) A description of any additional material or information needed for the Claimant to
perfect his or her claim and an explanation of why the material or information is needed;

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

     (e) The name and address of the Administrator to which the Claimant 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.

     7.2 If the Claimant appeals to the Administrator, the Claimant or his or her authorized
representative may submit in writing whatever issues and comments he or she 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 the Claimant in writing of:

          (a) The Administrator’s decision on appeal.

8

 

          (b) The specific reasons for the decision.

          (c) The specific provisions of the Plan 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.

SECTION 8 May I Assign My Rights Under This Plan?

No. Any attempt to assign rights under the Plan is invalid and void.

SECTION 9 What Events Can Cause the Plan To Be Changed or Terminated?

The Company may terminate or amend the Plan in its sole discretion at any time prior to a Change in
Control. However, once a Change in Control occurs, no amendment or termination will be effective
with respect to an Eligible Employee unless he or she consents to such amendment in writing after
consultation with legal counsel. Moreover, after a Change in Control, the identity of the
Administrator that is determined pursuant to Section 2.1, may not be changed by an amendment
without the express written consent of a majority of individuals who are or will become Eligible
Employees as a result of the Change in Control.

In compliance with Section 402(b)(3) of ERISA, the Company must comply with the following procedure
before any termination or amendment to the Plan is effective:

     9.1 The Plan may only be modified or terminated by a written amendment that is authorized by
the Company.

     9.2 The Company’s authorization of the amendment must be evidenced by one of the following:
(1) a resolution of the board of directors; (2) execution of the amendment by the chief executive
officer, president or secretary; or (3) ratification of the amendment by either a resolution of the
board of directors or written confirmation of ratification by the chief executive officer,
president or secretary.

     9.3 Notice of the amendment must be provided to the Administrator.

     9.4 Notice of the amendment must be provided to all Eligible Employees at least 30 days prior
to the effective date of the amendment.

Oral amendments and modifications of this Plan are not effective. All amendments and modifications
must be in writing and signed as provided above to be effective.

9

 

SECTION 10 Additional Information

These 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.

SECTION 11 What Are My Rights Under ERISA?

As a participant in the Plan, 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 Plan 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 Plan
Administrator. The Plan Administrator may make a reasonable charge for the copies.

Receive a summary of the Plan’s annual financial report. The Plan 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 Plan 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 Plan 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

10

 

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.

If you have any questions about your Plan, you should contact the Plan 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.

SECTION 12 Summary of Plan Information

Name of
Plan: LifePoint Hospitals, Inc. Change in Control Severance Plan

Name and Address of the Company:

LifePoint Hospitals, Inc.

103 Powell Court

Suite 200

Brentwood, TN 37027

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

The Company’s Employer Identification No.: 20-1538254

Plan Number: 510

Plan Year: January 1 to December 31

Plan Administrator, Name, Address and Telephone No.:

Administrator of the Change in Control Severance Plan

c/o Senior Vice President, Human Resources

LifePoint Hospitals, Inc.

103 Powell Court

Suite 200

Brentwood, TN 37027

615-372-8500

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

11

 

     IN WITNESS WHEREOF, LifePoint Hospitals, Inc. acting through the undersigned authorized
representative, has executed this amended and restated Plan on the
9th day
of May,
2006, to be effective as of May 9, 2006.

	 	 	 	 	 	 	 
	 	 	LifePoint Hospitals, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ William F. Carpenter III	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	Executive Vice President	 	 
	 

	 	 	 	 

	 	 

12

 

EXHIBIT A

Eligible Employees

     Subject to the conditions for eligibility set forth in Section 4 of the LifePoint Hospitals,
Inc. Change in Control Severance Plan, the individuals identified herein shall be Eligible
Employees as defined in the Plan, and shall be identified in the Plan in accordance with the
classifications specified below:

Category One:

     Senior Vice Presidents and higher

Category Two:

Vice Presidents (below Senior Vice President)

Chief Information Officer

Division Chief Financial Officer

13

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