Document:

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                                                                   Exhibit 10.18

                                 CHAIRMAN & CEO

                                   EMPLOYMENT
                                    AGREEMENT

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                           <C>
TERMS AND CONDITIONS OF EMPLOYMENT.........................................................................   1

COMPENSATION...............................................................................................   2

TERM AND TERMINATION OF EMPLOYMENT.........................................................................   4

COMPENSATION UPON TERMINATION OF EMPLOYMENT................................................................   4

TAX WITHHOLDING............................................................................................   8

RESTRICTIVE COVENANTS......................................................................................   8

SUCCESSORS.................................................................................................  11

NOTICES....................................................................................................  12

GOVERNING LAW..............................................................................................  12

ENTIRE AGREEMENT...........................................................................................  12

SEVERABILITY...............................................................................................  12

NO ASSIGNMENT BY EXECUTIVE; BINDING EFFECT.................................................................  13

HEADINGS...................................................................................................  13

DEFINITIONS................................................................................................  13

COUNTERPARTS...............................................................................................  18
</TABLE>

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                              EMPLOYMENT AGREEMENT

                  THIS EMPLOYMENT AGREEMENT (this "Agreement") dated as of June
25, 2001 (the "Effective Date"), between LifePoint CSGP, LLC, a Delaware limited
liability company ("LifePoint" or the "Company") and Kenneth C. Donahey (the
"Executive").

                              W I T N E S S E T H:

                  WHEREAS, LifePoint desires to secure the services of the
Executive as its Chairman of the Board of Directors and Chief Executive Officer,
on the terms and conditions set forth herein; and

                  WHEREAS, the Executive is willing to serve LifePoint as the
Chairman of the Board of Directors, a member of such Board and Chief Executive
Officer of LifePoint Hospitals, Inc. on the terms and conditions set forth
herein.

                  NOW, THEREFORE, in consideration of good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby covenant and agree as follows:

         1.   TERMS AND CONDITIONS OF EMPLOYMENT

                  (a) Employment. LifePoint hereby agrees to employ the
Executive and the Executive hereby agrees to remain in the employ of LifePoint
on and subject to the terms and conditions of this Agreement.

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                  (b) Positions, Duties and Responsibilities. The Executive at
all times shall serve as, and with the title, office, and authority of, the
Chief Executive Officer of LifePoint, reporting directly to the Board of
Directors of LifePoint (the "Board of Directors" or "Board") as well as serving
as a member of the Board and as the Chairman of the Board. LifePoint shall use
its best efforts to take such action as may be required to maintain the
Executive's status as such.

                  (c) Full-Time Employment. The Executive agrees to devote
substantially all of his professional working time and attention to the benefit
of LifePoint under the terms of this Agreement; provided, however, that nothing
in this Agreement is intended nor shall be construed as limiting or restricting
the Executive's right to engage in any activity that is unrelated to his
position specified in paragraph (b) above, including, without limitation,
managing private, passive investments, engaging in church, community, and civic
activities and other activities approved by the Board, and serving as a director
or a member of an advisory committee of any corporation or other entity on which
the Executive is serving as of the Effective Date or any other corporation or
entity that is not in competition with LifePoint, provided that such activities
do not impinge in any material way upon the requirement that the Executive
devote substantially all of his professional working time and attention to the
Company and perform the duties of his position specified in paragraph (b) above.

         2.   COMPENSATION

                  In consideration of the services rendered by the Executive
during the Agreement Term (as defined below), LifePoint shall (except as
otherwise provided in item (iii) of paragraph (b) below), pay or provide the
Executive with the compensation and benefits set forth below.

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                  (a) Salary. The Executive shall be paid a base salary (the
"Base Salary") equal to $520,000 per annum, payable in bi-weekly installments.
The Executive's Base Salary shall be reviewed not less than once each calendar
year by the Compensation Committee of the Board of Directors of LifePoint and
may be increased, but not decreased, in such Compensation Committee's sole and
absolute discretion.

                  (b) Annual Bonus. Effective for calendar year 2001, and
continuing for each subsequent calendar year ending during the Agreement Term,
the Executive shall be entitled to receive a bonus (an "Annual Bonus") based on
the extent to which LifePoint achieves or exceeds its target performance goals
for the relevant calendar year (the "Annual Targets"). Such Annual Bonus for any
calendar year shall equal 75% of the Executive's Base Salary (as in effect on
the last day of such year) if LifePoint shall achieve but not exceed the
applicable Annual Targets and shall exceed 75% of such Base Salary if LifePoint
shall exceed the applicable Annual Targets, but in no event shall such Annual
Bonus exceed 100% of such Base Salary. The establishment of Annual Targets for
each calendar year, the adjustment to be made in the Annual Bonus in the event
of attainment of specified percentages of such Annual Targets, and the method
for determining the achievement of such Annual Targets shall be established by
the Compensation Committee of the LifePoint Board of Directors in consultation
with the Executive.

                  (c) Benefits. The Executive, as of any date, shall be entitled
to participate in the benefit plans offered at such time at a level which is no
less than commensurate with the benefit level offered generally to other senior
executives at such time.

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         3.   TERM AND TERMINATION OF EMPLOYMENT

                  (a) Term. The term of this Agreement shall commence on the
Effective Date and shall end on the third anniversary of the Effective Date (the
"Agreement Term"); provided, however, that the Agreement Term shall be
automatically extended for an additional year on the second anniversary of the
Effective Date and on each succeeding anniversary of the Effective Date, unless
written notice of non-extension is provided by LifePoint or the Executive to the
other party at least 90 days prior to the applicable anniversary.

                  (b) Termination of Employment. Nothing in this Agreement shall
be construed to prevent the Executive from voluntarily terminating his
employment with LifePoint at any time or to prevent LifePoint from terminating
the Executive's employment at any time. Upon such termination, the provisions of
Section 4 shall apply.

         4.   COMPENSATION UPON TERMINATION OF EMPLOYMENT.

                  If the Executive's employment with LifePoint is terminated
during the Agreement Term, the Executive shall be entitled to the following in
full satisfaction of his rights under this Agreement, notwithstanding anything
elsewhere in this Agreement:

                  (a) Involuntary Termination Without Cause or Termination for
Good Reason. In the event the Executive's employment is terminated by the
Company other than for Cause, death, or Disability, or is terminated by the
Executive for Good Reason, the Company shall pay the Executive, and provide him
with, the following:

                  (i) His earned but unpaid Base Salary through the date of
         termination, any earned but unpaid bonus under Section 2(b) for the
         calendar year that ended prior to the

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         date of termination and amounts due to the Executive from the Company
         as of the date of termination, all of which amounts shall be paid in a
         lump sum no later than fifteen (15) days after the date the Executive's
         employment terminates, and any payments, rights and benefits due as of
         the date of termination under the terms of all employee benefit plans
         and programs (in which he was a participant) in accordance with the
         terms of such plans and programs (collectively the "Accrued Rights").

                  (ii) Continued monthly payments at an annual rate of 100% of
         the Base Salary from the date of such termination until the second
         anniversary of such termination (the "Cut-Off Date").

                  (iii) 75% of Base Salary (based on his Base Salary at the time
         of his termination) for each calendar year or fraction of a calendar
         year in the period from the first day of the calendar year in which
         such termination occurs through the Cut-Off Date, with the amount
         payable hereunder for the calendar year in which the Cut-Off Date
         occurs to be prorated (based on calendar days), all of which amounts
         shall be paid in a lump sum no later than fifteen (15) days after the
         date the Executive's employment terminates.

                  (iv)   His Insurance Coverage.

                  (b) Voluntary Termination; Termination for Cause. In the event
the Executive voluntarily terminates his employment hereunder or is terminated
by the Company for Cause, the Company shall pay the Executive, and provide him
with, any Accrued Rights.

                   (c) Disability; Death. In the event the Executive's
employment is terminated by reason of the Executive's death, or the Board of
Directors determines in good faith that the

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Executive is Disabled, the Company shall pay, and provide the Executive (or his
legal representative) with, the following:

                  (i)   His Accrued Rights.

                  (ii) Continued monthly payments at an annual rate of 100% of
         his then Base Salary from the date of such termination until the
         Cut-Off Date.

                  (iii) 75% of his Base Salary (based in each case on the Base
         Salary at the time of his termination) for each calendar year or
         fraction of a calendar year in the period from the first day of the
         calendar year in which such termination occurs through the Cut-Off
         Date, with the amount payable hereunder for the calendar year in which
         the Cut-Off Date occurs to be prorated (based on calendar days) and
         with the amount payable hereunder for any calendar year to be payable
         as promptly as practicable after the close of such calendar year.

                  (iv)   His Insurance Coverage (if he is Disabled).

                  For purposes of this Agreement, "Disability" shall mean the
inability of the Executive, after reasonable accommodation, to perform the
duties required hereunder for a period equal to or in excess of the waiting
period under the Company's long term disability insurance policy, as determined
in good faith by the Board of Directors.

                  (d) Termination after Agreement Term. If the Executive's
employment with the Company is terminated upon or following the close of the
Agreement Term, he shall be entitled to the following in full satisfaction of
his rights under this Agreement, notwithstanding anything elsewhere in this
Agreement:

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                  (i)   His Accrued Rights.

                  (ii) If his employment terminates in the calendar year in
         which the Agreement Term ends and is not for Cause, 75% of his Base
         Salary prorated (based on calendar days) for the portion of such
         calendar year prior to the close of the Agreement Term (based on the
         Base Salary on the last day of the Agreement Term), all of which
         amounts shall be paid in a lump sum no later than fifteen (15) days
         after the date his employment terminates.

                  (e) Stock Options. Any options covering shares of Common Stock
held by the Executive at the time of the Executive's termination of employment
shall be exercisable on or after the date of such termination in accordance with
their terms.

                  (f) Taxes. If there is a determination that the payments and
other benefits called for under this Agreement, in combination with any other
payments or benefits to or for the benefit of the Executive from LifePoint or
any predecessor or successor organization, will result in the Executive's being
subject to an excise tax under Section 4999 of the Code and/or if such an excise
tax is assessed against the Executive as a result of such payments or other
benefits, LifePoint shall make a Gross Up Payment (as defined in this Section
4(f)) to or on behalf of the Executive as and when such determination(s) and
assessment(s), as appropriate, are made, provided the Executive takes such
action as LifePoint reasonably requests under the circumstances to mitigate or
challenge, or to mitigate and challenge, such tax and LifePoint complies with
its obligations described below in this Section 4(f).

         A "Gross Up Payment" means a payment to or on behalf of the Executive
which shall be sufficient to pay (i) any such excise tax in full, (ii) any
federal, state and local income tax and

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social security and other employment tax on the payment made to pay the
Executive's excise tax as well as any additional excise tax on such payment and
(iii) any interest or penalties assessed by the Internal Revenue Service on the
Executive if such interest or penalties are attributable to LifePoint's failure
to comply with its obligations under this Section 4(f) or applicable law. Any
determination under this Section 4(f) by LifePoint or LifePoint's accountants
shall be made in accordance with Section 280G of the Code and any applicable
related regulations (whether proposed, temporary or final) and any related
Internal Revenue Service rulings and any related case law and, if LifePoint
reasonably requests that the Executive take action to mitigate or challenge, or
to mitigate and challenge, any such tax or assessment and the Executive complies
with such request, LifePoint shall provide Executive with such information and
such expert advice and assistance from LifePoint's accountants, lawyers and
other advisors as he may reasonably request and shall pay for all expenses
incurred in effecting such compliance and any related fines, penalties, interest
and other assessments.

         5.   TAX WITHHOLDING

                  All compensation payable pursuant to this Agreement shall be
subject to reduction by all applicable withholding, social security and other
federal, state and local taxes and deductions.

         6.   RESTRICTIVE COVENANTS

                  (a) Confidentiality/Trade Secrets. The Executive acknowledges
that his position with the Company will be one of the highest trust and
confidence, both by reason of his position and by reason of his access to and
contact with the trade secrets and confidential and proprietary business
information of the Company and all of its Affiliates (which term as used in this

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Agreement shall include, any person, corporation, partnership, general partner
or other entity that directly, or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with the Company), both
during the term of this Agreement and thereafter. The Executive covenants and
agrees as follows:

                  (i) Protection. That he shall at all times use his best
         efforts and exercise diligence to protect and safeguard the trade
         secrets and confidential and proprietary information of the Company and
         its Affiliates, including, without limitation, the identity of their
         patients or customers (including third-party payers of any kind or
         nature) and suppliers, their arrangements with their patients or
         customers and suppliers, and their technical data, records,
         compilations of information, processes, computer software, and
         specifications relating to their patients or customers, suppliers,
         products and services.

                  (ii) Nondisclosure. That he shall not at any time disclose any
         of such trade secrets and confidential and proprietary information,
         except as Executive reasonably decides may be required in the course of
         his employment with the Company under Section 1 hereof or as may be
         required by law.

                  (iii) Nonusage. That he shall not at any time use, directly or
         indirectly, for his own benefit or for the benefit of another, any of
         such trade secrets and confidential and proprietary information.

                  The covenants contained in this Section 6(a) shall not be
applicable to any information which is in the public domain, other than as a
result of action by the Executive in violation of this Section 6(a), or which
was obtained from sources other than the Company or its Affiliates who are not
under a duty of nondisclosure. All files, records, documents, drawings,

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specifications, computer software, memoranda, notes, or other documents relating
to the business of the Company and its Affiliates, whether prepared by the
Executive or otherwise coming into his possession, shall be the exclusive
property of the Company and its Affiliates and shall be delivered to the Company
or its Affiliates as appropriate, and not retained by the Executive, upon
termination of his employment for any reason whatsoever.

                  (b) Non-Competition. The Executive covenants and agrees that,
so long as he is employed by the Company, and for a period of two years
following his termination of employment for Good Reason or his voluntary
termination under Section 4(b), the Executive shall not, without the prior
written consent of the Company, directly or indirectly, as an employee, company,
agent, principal, proprietor, partner, ten percent (10% or more) stockholder,
consultant, director, or corporate officer, engage in any business that is in
competition with the hospitals owned by the Company at the time of termination.

                  (c) Modification. If the scope of any of the restrictions
contained in this Section 6 is too broad to permit enforcement of such
restrictions to their full extent, then such restrictions shall be enforced to
the maximum extent permitted by law, and the Executive hereby consents and
agrees that such scope may be modified accordingly in any proceeding brought to
enforce such restrictions.

                  (d) Remedies for Breach of Restrictive Covenants. The
covenants set forth in this Section 6 shall continue to be binding upon the
Executive notwithstanding the termination of his employment with the Company for
any reason whatsoever. Such covenants shall be deemed and construed as separate
agreements independent of any other provision of this Agreement. The existence
of any claim or cause of action by the Executive against the Company or any of
its

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Affiliates, whether predicated on this Agreement or otherwise, shall not
constitute a defense to the enforcement by the Company or any of its Affiliates
of any or all of such covenants. It is expressly agreed that the remedy at law
for the breach of any such covenant is inadequate and that temporary and
permanent injunctive relief shall be available to prevent the breach or any
threatened breach thereof, without the necessity of proof of actual damages and
without the necessity of posting a bond, cash or otherwise.

         7.   SUCCESSORS

                  (a) This Agreement shall be binding upon and shall inure to
the benefit of LifePoint, its successors and assigns and any person, firm,
corporation or other entity which succeeds to all or substantially all of the
business, assets or property of LifePoint in accordance with Section 7. Any
successor to LifePoint shall be treated the same as LifePoint under this
Agreement. LifePoint will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business, assets or property of such company, to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that such
company would be required to perform it if no such succession had taken place.

                  (b) This Agreement and all rights of the Executive hereunder
shall inure to the benefit of and be enforceable by the Executive's personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive should die while any
amounts are due and payable to him hereunder, all such amounts, unless otherwise
provided herein, shall be paid to the legal representatives of the Executive's
estate.

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         8.   NOTICES

                  Any notice, demand, or communication required, permitted or
desired to be given hereunder must be in writing to be effective, and shall be
deemed effectively given when personally delivered or mailed by prepaid
certified mail, return receipt requested, addressed as follows:

       If to the Executive:      Kenneth C. Donahey

                                 5101 Country Club Drive
                                 Brentwood, TN 37027

       If to LifePoint:          LifePoint Hospitals, Inc.
                                 103 Powell Court, Suite 200
                                 Brentwood, TN  37027
                                 Attn:  Senior Vice President, Human Resources

         9.   GOVERNING LAW

                  This Agreement has been executed and delivered and shall be
interpreted, construed, and enforced in accordance with the laws of the State of
Tennessee.

         10.    ENTIRE AGREEMENT

                  This Agreement shall constitute the entire agreement of the
parties hereto and may not be amended except in writing signed by all of the
parties hereto. No oral statements or prior written materials not specifically
incorporated herein shall be of any force or effect.

         11.    SEVERABILITY

                  In the event any provision of this Agreement is held to be
unenforceable or void for any reason, the remainder of this Agreement shall be
unaffected and shall remain in full force and effect in accordance with its
terms.

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         12.    NO ASSIGNMENT BY EXECUTIVE; BINDING EFFECT

                  The Executive shall not assign this Agreement to any other
party or parties without the prior written consent of LifePoint. This Agreement
shall inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns.

         13.    HEADINGS

                  The headings used herein are for convenience only and do not
limit the contents of this Agreement.

         14.  DEFINITIONS

         (a)  For purposes of this Agreement, "Cause" shall mean:

                  (i) The conviction of the Executive of a felony under the laws
         of the United States or any state thereof, whether or not appeal is
         taken, as determined by the Board of Directors in good faith.

                  (ii) The conviction of the Executive for a violation of
         criminal law involving the Company and its business that materially
         damages the Company as determined by the Board of Directors in good
         faith.

                  (iii) The willful misconduct of the Executive, or the willful
         or continued failure by the Executive (except in the case of a
         Disability as provided in Section 4(c) hereof) to substantially perform
         his duties hereunder, in either case which has a material adverse
         effect on the Company as determined by the Board of Directors in good
         faith.

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                  (iv) The willful fraud or material dishonesty of the Executive
         in connection with his performance of his duties to the Company and
         involving the finances of the Company as determined by the Board of
         Directors in good faith.

                  (v) Executive's repeated use of alcohol in a manner which in
         the opinion of the Board of Directors materially impairs the ability of
         the Executive to effectively perform the Executive's duties and
         obligations under this Agreement, or the illegal use, possession, or
         sale of, or impaired performance due to the illegal use of, controlled
         substances.

                  (vi) a violation of the Company's policies on sexual or other
         illegal harassment of a Company employee by the Executive as determined
         by the Board of Directors in good faith.

In no event, however, shall the Executive's employment be considered to have
been terminated for "Cause" under this Agreement unless and until the Executive
receives written notice from the Board of Directors stating in detail the acts
or omissions constituting Cause and the Executive has the opportunity to cure to
the Board of Directors' satisfaction any such acts or omissions, in the case of
(iii), (v) or (vi) above, within 30 days of the Executive's receipt of such
notice. The foregoing shall not limit the right of the Board of Directors to
suspend the Executive from his day-to-day responsibilities with the Board of
Directors pending the completion of such notice and cure procedures.

         (b) For purposes of this Agreement, "Good Reason" shall mean: (i) the
assignment to the Executive of any duties inconsistent with the Executive's
position (including the loss of any of his titles or position as Chairman of the
Board, a member of the Board and Chief Executive

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Officer, and any other status, offices, titles or reporting relationships),
authority, duties or responsibilities as contemplated by Section 1 hereof, any
adverse change in the Executive's reporting responsibilities, or any action by
LifePoint that results in a diminution in such position, authority, duties or
responsibilities, but excluding for these purposes an isolated and insubstantial
action not taken in bad faith and which is remedied by LifePoint promptly after
receipt of notice thereof given by the Executive; (ii) any diminution in
Executive's total compensation in violation of Section 2; (iii) the relocation,
without the consent of the Executive, of LifePoint's principal executive offices
or the offices of the Executive to a location more than 40 miles from Nashville,
Tennessee, (iv) a termination of Executive's employment for any reason (other
than his death) within twelve months after a Change in Control, or (v) any
breach under Section 7 of this Agreement.

         (c)  For purposes of this Agreement, "Change in Control" shall mean:

                  (i) An acquisition (other than directly from LifePoint) of any
         voting securities of LifePoint (the "Voting Securities") by any
         "Person" (as the term Person is used for purposes of Section 13(d) or
         14(d) of the Securities Exchange Act of 1934, as amended (the "1934
         Act")) immediately after which such Person has "Beneficial Ownership"
         (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of
         twenty percent (20%) or more of the combined voting power of the then
         outstanding Voting Securities; provided, however, that in determining
         whether a Change in Control has occurred, Voting Securities which are
         acquired in a "Non-Control Acquisition" (as hereinafter defined) shall
         not constitute an acquisition which would cause a Change in Control. A
         "Non-Control Acquisition" shall mean an acquisition by (i) an employee
         benefit plan (or a trust forming a part thereof) maintained by (A)
         LifePoint or (B) any corporation or

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         other Person of which a majority of its voting power or its equity
         securities or equity interest is owned directly or indirectly by
         LifePoint (a "Subsidiary") or (ii) LifePoint or any Subsidiary.

                  (ii) The individuals who are members of the Board (the
         "Incumbent Board"), cease for any reason to constitute at least
         two-thirds of the Board; provided, however, that if the election or
         nomination for election by LifePoint's stockholders, of any new
         director was approved by a vote of at least two-thirds of the Incumbent
         Board, such new director shall, for purposes of this Agreement, be
         considered as a member of the Incumbent Board; provided further,
         however, that no individual shall be considered a member of the
         Incumbent Board if (1) such individual initially assumed office as a
         result of either an actual or threatened "Election Contest" (as
         described in Rule 14a-11 promulgated under the 1934 Act) or other
         actual or threatened solicitation of proxies or consents by or on
         behalf of a Person other than the Board (a "Proxy Contest") including
         by reason of any agreement intended to avoid or settle any Election
         Contest or Proxy Contest or (2) such individual was designated by a
         Person who has entered into an agreement with LifePoint to effect a
         transaction described in clause (i) or (iii) of this Section 14(c); or

                  (iii) The consummation, after approval by stockholders of
         LifePoint, of:

                           (A) merger, consolidation or reorganization involving
                  LifePoint unless

                           (1) The stockholders of LifePoint, immediately before
                           such merger, consolidation or reorganization, own,
                           directly or indirectly immediately following such
                           merger, consolidation or reorganization, at least
                           seventy-five percent (75%) of the combined voting
                           power of the outstanding

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                           Voting Securities of the corporation resulting from
                           such merger or consolidation or reorganization or its
                           parent corporation (the "Surviving Corporation") in
                           substantially the same proportion as their ownership
                           of the Voting Securities immediately before such
                           merger, consolidation or reorganization;

                           (2) The individuals who were members of the Incumbent
                           Board immediately prior to the execution of the
                           agreement providing for such merger, consolidation or
                           reorganization constitute at least two-thirds of the
                           members of the board of directors of the Surviving
                           Corporation; and

                           (3) No Person (other than LifePoint, any Subsidiary,
                           any employee benefit plan (or any trust forming a
                           part thereof) maintained by LifePoint, the Surviving
                           Corporation or any Subsidiary, or any Person who,
                           immediately prior to such merger, consolidation or
                           reorganization, had Beneficial Ownership of twenty
                           percent (20%) or more of the then outstanding Voting
                           Securities) has Beneficial Ownership of twenty
                           percent (20%) or more of the combined voting power of
                           the Surviving Corporations then outstanding Voting
                           Securities.

                  (B)  A complete liquidation or dissolution of LifePoint; or

                  (C) An agreement for the sale or other disposition of all or
substantially all of the assets of LifePoint to any Person (other than a
transfer to a Subsidiary).

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                  Notwithstanding the foregoing, a Change in Control shall not
be deemed to occur solely because any Person (the "Subject Person") acquired
Beneficial Ownership of more than the permitted amount of the outstanding Voting
Securities as a result of the acquisition of Voting Securities by LifePoint
which, by reducing the number of Voting Securities outstanding, increased the
proportional number of shares Beneficially Owned by the Subject Person;
provided, however, if a Change in Control would occur (but for the operation of
this sentence) as a result of the acquisition of Voting Securities by LifePoint,
and after such share acquisition by LifePoint, the Subject Person becomes the
Beneficial Owner of any additional Voting Securities which increases the
percentage of the then outstanding Voting Securities Beneficially Owned by the
Subject Person, then a Change in Control shall occur.

         15.  COUNTERPARTS

                  This Agreement may be executed in counterparts, each of which
will deem to be an original, but all of which together will constitute one in
the same Agreement.

                  IN WITNESS WHEREOF, LifePoint and the Executive have executed
this Agreement as of the date first above written.

                                    --------------------------------------------
                                    EXECUTIVE

                                    LIFEPOINT CSGP, LLC

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

                                       18<PAGE>
                                                                   EXHIBIT 10.40

                     LOAN DOCUMENTS MODIFICATION AGREEMENT

         THIS LOAN DOCUMENTS MODIFICATION AGREEMENT (hereinafter referred to as
this "Amendment") is made and entered into as of the 11th day of May, 2001, by
and among SOUTHTRUST BANK, an Alabama banking corporation (hereinafter referred
to as "Lender"), and SUBURBAN LODGES OF AMERICA, INC., a Georgia corporation,
SUBURBAN HOLDINGS, L.P., a Georgia limited partnership and SUBURBAN
CONSTRUCTION, INC., a Georgia corporation (hereinafter collectively referred to
as "Borrower").

                              BACKGROUND STATEMENT

         Borrower and Lender are parties to (i) that certain Non-Revolving
Draw-Down Term Note dated September 27, 2000, made by Borrower to the order of
Lender in the original principal amount of Ten Million and No/100 Dollars
($10,000,000.00) (hereinafter referred to as the "Term Note", and the loan
evidenced thereby as the "Term Loan"); (ii) that certain Amended and Restated
Line of Credit Note dated September 27, 2000, made by Borrower to the order of
Lender in the original principal amount of Fifteen Million and No/100 Dollars
($15,000,000.00) (hereinafter referred to as the "Line of Credit Note", and the
loan evidenced thereby as the "Line of Credit Loan", the Line of Credit Note
and the Term Note hereinafter collectively referred to as the "Note" and the
loans evidenced thereby as the "Loan"). The Note is secured by (a) that certain
Mortgage, Assignment of Rents and Security Agreement from Borrower to Lender,
dated February 18, 2000, recorded as Document No. 1680514, in the Records of
the County Recorder of Dakota County, Minnesota, as modified by that certain
First Modification to Security Deed dated September 27, 2000, recorded as
Document No. 1722211, aforesaid records (hereinafter referred to as the "Dakota
Security Deed"), (b) that certain Mortgage, Assignment of Rents and Security
Agreement from Borrower to Lender, dated February 18, 2000, recorded as
Document No. 1488409, in the Records of the County Recorder of Anoka County,
Minnesota, as modified by that certain First Modification to Security Deed dated
September 27, 2000, recorded as Document No. 1527507, aforesaid records
(hereinafter referred to as the "Anoka Security Deed"), (c) that certain
Mortgage, Assignment of Rents and Security Agreement from Borrower to Lender,
dated February 18, 2000, recorded at Clerk's File No. 2000-0032600, in the
Records of the County Clerk of Bexar County, Texas, as modified by that certain
First Modification to Security Deed dated September 27, 2000, recorded at
Clerk's File No. 2000-0170867, aforesaid records (hereinafter referred to as
the "Bexar Security Deed"), (d) that certain Mortgage, Assignment of Rents and
Security Agreement from Borrower to Lender, dated February 18, 2000, recorded
at Clerk's File No. 905707, in the Records of the County Clerk of Dallas
County, Texas as modified by that certain First Modification to Security Deed
dated September 27, 2000, recorded at Clerk's File No. 1155751, aforesaid
records (hereinafter referred to as the "Dallas Security Deed"), (e) that
certain Mortgage, Assignment of Rents and Security Agreement from Borrower to
Lender, dated February 18, 2000, recorded at Clerk's File No. 2000-0012575 in
the Records of the County Clerk of El Paso County, Texas as modified by that
certain First Modification to Security Deed dated September 27, 2000, recorded
at Clerk's File No. 20000071649, aforesaid records (hereinafter referred to as
the "El Paso Security Deed"), (f) that certain Tennessee Deed of Trust
Assignment of Rents and Leases and Security Agreement from Borrower to Lender,
dated February 18, 2000, recorded as Instrument No. 200000022400189, in Book
5542, Page 944 in the Public Records of Hamilton County, Tennessee as modified
by that certain First Modification to Security Deed dated September 27, 2000,
recorded as Instrument No. 20000101600383, aforesaid records (hereinafter
referred to as the "Tennessee Security Deed"), (g) that certain Mortgage,
Assignment of Rents and Security Agreement from Borrower to Lender, dated
February 18, 2000, recorded as Document No. R2000-027503, in the Public Records
of Dupage County, Illinois as modified by that certain First Modification to
Security Deed dated September
<PAGE>
27, 2000, recorded as Document No. R2000-153061, aforesaid records (hereinafter
referred to as the "Dupage Security Deed"), (h) that certain Mortgage,
Assignment of Rents and Security Agreement from Borrower to Lender, dated
November 8, 2000, recorded as Document No. 2000-1115, in the Public Records of
Cook County, Illinois (hereinafter referred to as the "Cook Security Deed"),
(i) that certain Mortgage, Assignment of Rents and Security Agreement from
Borrower to Lender, dated February 18, 2000, recorded as Instrument No.
200002230035892, in the Records of the County Recorder of Franklin County,
Ohio, as modified by that certain First Modification to Security Deed dated
September 27, 2000, recorded as Instrument No. 200010020199082, aforesaid
records (hereinafter referred to as the "Ohio Security Deed;" the Ohio Security
Deed, the Cook Security Deed, the Dupage Security Deed, the Dakota Security
Deed, the Anoka Security Deed, the Bexar Security Deed, the Tennessee Security
Deed, the Dallas Security Deed, and the El Paso Security Deed hereinafter
collectively referred to as the "Security Deed"), and (j) all of the "Loan
Documents," as that term is defined in the Security Deed. Certain obligations
of Borrower are contained in a Amended and Restated Loan Agreement by and
between Borrower and Lender dated September 27, 2000 (hereinafter referred to
as the "Loan Agreement") as subsequently amended herein and from time to time.
Borrower and Lender have agreed to amend the Loan Agreement and all of the
other Loan Documents, and the parties hereto are entering into this Amendment
to evidence their agreements.

                                   AGREEMENT

     FOR AND IN CONSIDERATION of the sum of Ten and No/100 Dollars ($10.00),
the foregoing recitals, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Borrower and Lender do hereby
agree as follows:

          1.   Ratification; Expenses. Except as herein expressly modified or
amended, all the terms and conditions of the Note are hereby ratified,
affirmed, and approved. In consideration of Lender agreeing to amend the Loan
Agreement, the Term Note and the Line of Credit Note, Borrower agrees to pay
all fees and expenses incurred in connection with this Amendment.

          2.   Modification of Loan Agreement. As of the date hereof, Borrower
hereby reaffirms and restates each and every covenant, warranty and
representation set forth in the Loan Agreement except as modified herein. In
addition, Borrower and Lender hereby acknowledge and agree to the following
modifications of the Loan Agreement:

          (a)  The definition of "Suburban Debt Service Coverage Ratio" in
Article 101 of the Loan Agreement is hereby deleted in its entirety, and is
replaced by the following definition of "Suburban Debt Service Coverage Ratio:"

     ""Suburban Debt Service Coverage Ratio" shall mean, as of any particular
     date and with respect to Suburban, net income after taxes, plus
     depreciation, plus amortization, plus interest, less dividends, divided by
     current maturities of all long-term debt payments, excluding any principal
     amounts due under this Agreement, plus interest. Notwithstanding anything
     herein to the contrary, this definition shall exclude (i) any write-downs
     which may or may not be made from losses arising in connection with the
     investment in HotelTools, Inc., as permitted pursuant to that certain June
     27, 2000 consent letter by Lender to Borrower, and (ii) any first (1st)
     quarter 2001 write-downs relating to losses incurred in connection with
     undeveloped sites."
<PAGE>

         (b)  Section 507(c) Minimum Tangible Net Worth of the Loan Agreement is
hereby deleted in its entirety, and is replaced by the following Section 507(c)
Minimum Tangible Net Worth:

         "Minimum Tangible Net Worth: Suburban shall maintain a Tangible Net
     Worth of no less than $160,000,000.00."

     3.  Modification of Loan Documents: As of the date hereof, Borrower hereby
reaffirms and restates each and every warranty and representation set forth in
the Loan Documents. All references in the Loan Documents to the Loan Agreement
shall hereafter refer to the Loan Agreement as herein amended.

     4.  No Defenses; Release. For purposes of this Paragraph 4, the terms
"Borrower Parties" and "Lender Parties" shall mean and include Borrower and
Lender, respectively, and each of their respective predecessors, successors and
assigns, and each past and present, direct and indirect, parent, subsidiary and
affiliated entity of each of the foregoing, and each past and present employee,
agent, attorney-in-fact, attorney-at-law, representative, officer, director,
shareholder, partner and joint venturer of each of the foregoing, and each
heir, executor, administrator, successor and assign of each of the foregoing;
references in this paragraph to "any" of such parties shall be deemed to mean
"any one or more" of such parties; and references in this sentence to "each of
the foregoing" shall mean and refer cumulatively to each party referred to in
this sentence up to the point of such reference. Each Borrower hereby
acknowledges, represents and agrees: that each Borrower has no defenses,
setoffs, claims, counterclaims or causes of action of any kind or nature
whatsoever with respect to the Security Deed, Assignment of Rents or any
amendments thereto, the Note, and the other Loan Documents or the indebtedness
evidenced and secured thereby, or with respect to any other documents or
instruments now or heretofore evidencing, securing or in any way relating to
the Loan, or with respect to the administration or funding of the Loan or the
development, operation or financing of the "Premises" (as said term is defined
in the Security Deed) or with respect to any other transaction, matter or
occurrence between any of the Borrower Parties and any Lender Parties or with
respect to any acts or omissions of any Lender Parties (all of said defenses,
setoffs, claims, counterclaims or causes of action being hereinafter referred
to as "Loan Related Claims"); that, to the extent that either Borrower may be
deemed to have any Loan Related Claims, each Borrower does hereby expressly
waive, release and relinquish any and all such Loan Related Claims, whether or
not known to or suspected by Borrower; that Borrower shall not institute or
cause to be instituted any legal action or proceeding of any kind based upon
any Loan Related Claims; and that each Borrower shall indemnify, hold harmless
and defend all Lender Parties from and against any and all Loan Related Claims
and any and all losses, damages, liabilities, costs and expenses suffered or
incurred by any Lender Parties as a result of any assertion or allegation by
any Borrower Parties of any Loan Related Claims or as a result of any legal
action related thereto. Borrower hereby reaffirms and restates, as of the date
hereof, all covenants, representations and warranties set forth in the Loan
Documents.

     5.  No Novation. Borrower and Lender hereby acknowledge and agree that
this Amendment shall not constitute a novation of the indebtedness evidenced by
the Loan Documents, and further that the terms and provisions of the Loan
Documents shall remain valid and in full force and effect except as may be
hereinabove modified and amended.

         6. No Waiver or Implication. Borrower hereby agrees that nothing herein
shall constitute a waiver by Lender of any default, whether known or unknown,
which may exist under the Note or any other Loan Documents. Borrower hereby
further agrees that no action, inaction or agreement by Lender,
<PAGE>
including, without limitation, any extension, indulgence, waiver, consent or
agreement of modification which may have occurred or have been granted or
entered into (or which may be occurring or be granted or entered into hereunder
or otherwise) with respect to nonpayment of the Loan or any portion thereof, or
with respect to matters involving security for the Loan, or with respect to any
other matter relating to the Loan, shall require or imply any future extension,
indulgence, waiver, consent or agreement by Lender. Borrower hereby acknowledges
and agrees that Lender has made no agreement, and is in no way obligated, to
grant any future extension, indulgence, waiver or consent with respect to the
Loan or any matter relating to the Loan.

         7.     No Release of Collateral. Borrower further acknowledges and
agrees that this Agreement shall in no way occasion a release of any collateral
held by Lender as security to or for the Loan, and that all collateral held by
Lender as security to or for the Loan shall continue to secure the Loan.

         8.     Successors and Assigns. This Amendment shall be binding upon
and inure to the benefit of Borrower and Lender and their respective successors
and assigns, whether voluntary by act of the parties or involuntary by operation
of law.

         9.    Cross References. All references in any of the Loan Documents
to any of the Loan Documents shall hereafter include the modifications to the
Loan Documents set forth herein.

         IN WITNESS WHEREOF, this Amendment has been duly executed under seal
by Borrower and Lender as of the day and year first above written.

                                  BORROWER:

                                  SUBURBAN LODGES OF AMERICA, INC.,
                                  a Georgia corporation

                                  By: /s/ Paul A. Criscillis, Jr.
                                      ------------------------------------
                                      Paul A. Criscillis, Jr.,
                                      Chief Financial Officer

(CORPORATE SEAL)           Address:    300 Galleria Parkway, Suite 1200
                                       Atlanta, Georgia 30337
                                       Attn.: Chief Financial Officer

                           Copy to:    300 Galleria Parkway, Suite 1200
                                       Atlanta, Georgia 30337
                                       Attn.: Corporate Secretary

                  [SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

                                  SUBURBAN CONSTRUCTION, INC., a
                                  Georgia corporation

<PAGE>
                                        By: /s/ Paul A. Criscillis, Jr.
                                            ------------------------------------
                                            Paul A. Criscillis, Jr.
                                            Chief Financial Officer

(CORPORATE SEAL)           Address:     300 Galleria Parkway, Suite 1200
                                        Atlanta, Georgia 30337
                                        Attn: Chief Financial Officer

                           Copy to:     300 Galleria Parkway, Suite 1200
                                        Atlanta, Georgia 30337
                                        Attn: Corporate Secretary

                                        SUBURBAN HOLDINGS, L.P., a
                                        Georgia limited partnership

                                        By:  Suburban Management, Inc., its
                                             General Partner

                                        By: /s/ Paul A. Criscillis, Jr.
                                            -------------------------------
                                            Paul A. Criscillis, Jr.
                                            Chief Financial Officer

                           Address:     300 Galleria Parkway, Suite 1200
                                        Atlanta, Georgia 30337
                                        Attn: Chief Financial Officer

                           Copy to:     300 Galleria Parkway, Suite 1200
                                        Atlanta, Georgia 30337
                                        Attn: Corporate Secretary

                                        LENDER:

                                        SOUTHTRUST BANK, an Alabama banking
                                        corporation,

                                        By: /s/ William Harris
                                            ------------------------------------
                                            William Harris, Vice President

                           Address:     One Georgia Center
                                        600 West Peachtree Street, Suite 450
                                        Atlanta, GA 30308
                                        Attn: William Harris, Vice President

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