Document:

Ex-10.1 Form of Indemnification Agreement

Exhibit 10.1

LIFEPOINT HOSPITALS, INC.

INDEMNIFICATION AGREEMENT

     This INDEMNIFICATION AGREEMENT is made and entered into as of the 28th day of August, 2008
(this “Agreement”) by and between LifePoint Hospitals, Inc., a Delaware corporation (the
“Company”), and [l] (“Indemnitee”).

     WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve the Company and its related entities;

     WHEREAS, in order to induce Indemnitee to provide, or continue to provide, services to the
Company and its related entities, the Company wishes to provide for the indemnification of, and the
advancement of expenses to, Indemnitee to the maximum extent permitted by law;

     WHEREAS, the Company and Indemnitee recognize the continued difficulty in obtaining liability
insurance for directors, officers, employees, agents and fiduciaries, the significant increases in
the cost of such insurance and the general reductions in the coverage of such insurance;

     WHEREAS, the Company and Indemnitee recognize the substantial increase in corporate litigation
in general, subjecting directors, officers, employees, agents and fiduciaries to expensive
litigation risks and the limitations of coverage of liability insurance;

     WHEREAS, the Company and Indemnitee desire to continue to have in place the additional
protection provided by an indemnification agreement and to provide indemnification and advancement
of Expenses (as defined below) to Indemnitee to the maximum extent permitted by Delaware law;

     WHEREAS, the Board of Directors has determined that contractual indemnification as set forth
herein is not only reasonable and prudent but also promotes the best interests of the Company and
its stockholders;

     WHEREAS, the Company desires and has requested Indemnitee to serve or continue to serve as a
director, officer, employee, agent or fiduciary of the Company or any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise free from undue
concern for unwarranted claims for damages arising out of or related to such services;

     WHEREAS, Indemnitee is willing to serve, continue to serve or to provide additional service
for or on behalf of the Company on the condition that Indemnitee is furnished with the indemnity
provide for herein; and

     WHEREAS, in view of the considerations set forth above, the Company desires that Indemnitee
shall be indemnified and advanced Expenses by the Company as set forth herein;

 

 

     NOW, THEREFORE, the Company and Indemnitee hereby agree as set forth below:

     1. DEFINITIONS. As used in this Agreement, the following terms shall have the
following meanings:

          “By-laws” means the Second Amended and Restated By-laws of the Company, as such may be
amended.

          “Certificate” means the Amended and Restated Certificate of Incorporation of the
Company, as such may be amended.

          “Corporate Status” describes the status of a person who is or was a member of the
Board of Directors of the Company (the “Board”) or is or was otherwise a director, officer,
employee or agent or fiduciary of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise which such person is or was serving at
the request of the Company.

          “Disinterested Director” means a director of the Company who is not and was not a
party to the Proceeding in respect of which indemnification is sought by the Indemnitee.

          “Expenses” shall include attorneys’ fees, retainers, court costs, transcript costs,
fees of experts, filing fees, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and all other disbursements or
expenses and obligations of any nature whatsoever paid or incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, participating, or being or preparing to
be a witness in a Proceeding.

          “Independent Legal Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of Delaware corporation law and neither presently is, nor in the past five
(5) years has been, retained to represent: (i) the Company or Indemnitee in any matter material to
either such party (other than with respect to matters concerning Indemnitee under this Agreement)
or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not include any person
who, under the applicable standards of professional conduct then prevailing, would have a conflict
of interest in representing either the Company or the Indemnitee in an action to determine the
Indemnitee’s rights under this Agreement.

          “Proceeding” includes any threatened, pending or completed action, suit, arbitration,
proceeding, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing
or any other actual, threatened or completed proceeding, whether brought by or in the right of the
Company or otherwise and whether civil, criminal, administrative or investigative, in which an
Indemnitee was, is or will be involved as a party or otherwise, by reason of (i) the fact that
Indemnitee is or was a director, officer, employee, agent or fiduciary of the Company, (ii) any
action taken by Indemnitee or of any inaction on Indemnitee’s part while acting in a Corporate
Status or (iii) the fact that

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Indemnitee is or was serving at the request of the Company as a director, officer, employee or
agent or fiduciary of another corporation, partnership, joint venture, trust, employee benefit plan
or other enterprise. Any of the foregoing proceedings described in the immediately preceding
sentence (i) shall be deemed a Proceeding, whether or not Indemnitee is acting or serving in any
such capacity at the time any liability or expense is incurred for which indemnification can be
provided under this Agreement and (ii) shall include any Proceeding pending or threatened on or
before the date of this Agreement; provided, however, that such definition shall
exclude a Proceeding initiated by an Indemnitee pursuant to Section 9 to enforce
Indemnitee’s rights under this Agreement. For purposes hereof, threatened Proceedings shall
include, without limitation, any proceeding if any person (including the Company or any
governmental agent or agency) who may attempt to commence such a proceeding has manifested to the
Company, any entity as to which Indemnitee has a Corporate Status, any director, officer, employee,
agent or fiduciary of the Company or any of the foregoing or Indemnitee (i) an awareness of facts
that such person believes may form the basis for a Proceeding and (ii) that it may so attempt to
commence such a Proceeding, without regard to whether such manifestation is written, oral or
otherwise or such belief is reasonable.

     2. INTERPRETATION OF AGREEMENT; REQUEST TO SERVE. It is understood and agreed that
the parties hereto intend this Agreement to be interpreted and enforced so as to provide
indemnification, including advancement of Expenses, to the Indemnitee to the fullest extent now or
hereafter permitted by law. It also is understood and agreed that the parties intend that the
obligations of the Company to provide indemnification, including advancement of Expenses, shall be
interpreted broadly in favor of providing on a timely basis such indemnification and advancement of
Expenses to Indemnitee in a manner which favors resolving any disagreements over the right thereto
or procedures therefor in a manner which is prompt and cost-efficient to Indemnitee. For the
avoidance of doubt, in addition to any separate oral or written confirmation or request that the
Company may make, the Company expressly confirms (i) that Indemnitee is, or was, serving at the
request of the Company as a director, officer, employee or agent or fiduciary of (a) any
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise in which
the Company owns or owned at least 25% of the common or preferred equity (or such percentage of any
similar ownership interest) at any time during any such service or provides or provided to
Indemnitee any compensation for or right to reimbursement of any expenses or costs in respect of
such service and (b) of any employee benefit plan for the benefit of any officers, directors,
employees or agents of the Company, any of its subsidiaries or any enterprise described in clause
(a) as to which Indemnitee provides any service, and (ii) that any such service commencing after
the date hereof shall be deemed to be at the request of the Company.

     3. INDEMNITY. The Company hereby agrees to hold harmless and indemnify (including the
advancement of Expenses) the Indemnitee to the fullest extent authorized or permitted by law,
including without limitation, to the fullest extent authorized by Article Thirteenth of the
Company’s Certificate (“Article Thirteenth”) as the same exists on the date hereof
(or as such Certificate or the By-laws may hereafter be amended, but only to the extent that such
amendment authorizes or permits the Company to provide broader indemnification rights than
authorized or permitted prior to such

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amendment). In furtherance of the foregoing indemnification, and without limiting the
generality thereof:

          (a) Proceedings Other Than Proceedings by or in the Right of the Company. Indemnitee
shall be entitled to the rights of indemnification provided in this Section 3(a) if, by
reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be made, a party to or
participant in any Proceeding (including Proceedings arising out of or relating to Indemnitee’s
Corporate Status) other than a Proceeding by or in the right of the Company. Pursuant to this
Section 3(a), the Indemnitee shall be indemnified against all Expenses, judgments,
penalties, fines and amounts paid in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such Expenses, judgments, penalties,
fines or amounts paid in settlement) actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter therein, if
Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company and, with respect to any criminal Proceeding, had no
reasonable cause to believe Indemnitee’s conduct was unlawful.

          (b) Proceedings by or in the Right of the Company. The Indemnitee shall be entitled
to the rights of indemnification provided in this Section 3(b) if, by reason of Indemnitee
Corporate Status, Indemnitee is, or is threatened to be made, a party to or participant in any
Proceeding (including Proceedings arising out of or relating to Indemnitee’s Corporate Status)
brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this
Section 3(b), the Indemnitee shall be indemnified against all Expenses actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding if
Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company; provided, however, that, if
applicable law so provides, no indemnification against such Expenses shall be made in respect of
any claim, issue or matter in such Proceeding as to which the Indemnitee shall have been finally
adjudged to be liable to the Company unless and to the extent that the Court of Chancery of the
State of Delaware shall determine that such indemnification may be made.

          (c) Indemnification for Expenses if Indemnitee is a Party Who is Wholly or Partly
Successful. Notwithstanding any other provision of this Agreement, to the extent that the
Indemnitee is, by reason of Indemnitee’s Corporate Status, a party to and is successful, on the
merits or otherwise, in any Proceeding (including Proceedings arising out of or relating to
Indemnitee’s Corporate Status), Indemnitee shall be indemnified to the maximum extent permitted by
law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf
in connection therewith. If the Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall indemnify the Indemnitee against all Expenses
actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with each
successfully resolved claim, issue or matter. For purposes of this Section 3 and without
limitation, the termination of any claim, issue or matter in such a Proceeding by

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dismissal, with or without prejudice, shall be deemed to be a successful result as to such
claim, issue or matter.

     4. ADDITIONAL INDEMNITY. In addition to, and without regard to any limitations on,
the indemnification provided for in Section 3, the Company shall and hereby does indemnify
and hold harmless the Indemnitee against all Expenses, judgments, penalties, fines and amounts paid
in settlement (including all interest, assessments and other charges paid or payable in connection
with or in respect of such Expenses, judgments, penalties, fines or amounts paid in settlement)
actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf if, by reason of
Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be made, a party to or
participant in any Proceeding including a Proceeding by or in the right of the Company and
Proceedings arising out at or relating to Indemnitee’s Corporate Status, and will promptly advance
Expenses to Indemnitee upon request. The only limitation that shall exist upon the Company’s
obligations pursuant to this Section 4 shall be that the Company shall not be obligated to
make any payment to Indemnitee that is finally determined (under the procedures, and subject to the
presumptions, set forth in Sections 8 and 9 hereof) to be unlawful or contrary to public
policy.

     5. CONTRIBUTION IN THE EVENT OF JOINT LIABILITY.

          (a) Whether or not the indemnification provided in Sections 3 and 4 hereof is
available, in respect of any Proceeding in which the Company is jointly liable with Indemnitee (or
would be if joined in such Proceeding), Company shall pay the entire amount of any judgment,
penalty, fine or settlement (including all interest, assessments and other charges paid or payable
in connection with or in respect of such Expenses, judgments, penalties, fines or amounts paid in
settlement) of such Proceeding without requiring Indemnitee to contribute to such payment and the
Company hereby waives and relinquishes any right of contribution it may have against Indemnitee.
The Company shall not enter into any settlement of any Proceeding in which the Company is jointly
liable with Indemnitee (or would be if joined in such Proceeding) unless such settlement provides
for a full and final release of all claims asserted against Indemnitee.

          (b) Without diminishing or impairing the obligations of the Company set forth in the preceding
subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion
of any judgment or settlement in any threatened, pending or completed Proceeding in which the
Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), the Company
shall contribute an amount equal to 100% of the amount of Expenses, judgments, penalties, fines and
amounts paid in settlement (including all interest, assessments and other charges paid or payable
in connection with or in respect of such Expenses, judgments, penalties, fines or amounts paid in
settlement) actually and reasonably incurred and paid or payable by Indemnitee. If the Company is
prohibited by law from paying 100% of such Expenses, judgments, penalties, fines and amounts, then
the Company shall contribute to the amount of Expenses, judgments, penalties, fines and amounts
paid in settlement (including all interest, assessments and other charges paid or payable in
connection with or in respect of such Expenses, judgments, penalties, fines or amounts paid in
settlement) actually and

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reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits
received by the Company and all officers, directors or employees of the Company other than
Indemnitee who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on
the one hand, and Indemnitee, on the other hand, from the transaction from which such Proceeding
arose; provided, however, that the proportion determined on the basis of relative
benefit may, to the extent necessary to conform to law, be further adjusted by reference to the
relative fault of the Company and all officers, directors or employees of the Company other than
Indemnitee who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on
the one hand, and Indemnitee, on the other hand, in connection with the events that resulted in
such Expenses, judgments, penalties, fines or settlement amounts (including all interest,
assessments and other charges paid or payable in connection with or in respect of such Expenses,
judgments, penalties, fines or amounts paid in settlement), as well as any other equitable
considerations which the law may require to be considered. The relative fault of the Company and
all officers, directors or employees of the Company other than Indemnitee who are jointly liable
with Indemnitee (or would be if joined in such Proceeding), on the one hand, and Indemnitee, on the
other hand, shall be determined by reference to, among other things, the degree to which their
actions were motivated by intent to gain personal profit or advantage, the degree to which their
liability is primary or secondary, and the degree to which their conduct is active or passive.

          (c) To the maximum extent permitted by law, the Company shall indemnify and hold Indemnitee
harmless from any claims of contribution which may be brought by officers, directors, employees,
agents or fiduciaries of the Company who may be jointly liable with Indemnitee, including claims of
contribution for Expenses, judgments, penalties, fines and amounts paid in settlement (including
all interest, assessments and other charges paid or payable in connection with or in respect of
such Expenses, judgments, penalties, fines or amounts paid in settlement).

          (d) To the extent relevant, all presumptions and burdens of proof and persuasion set forth in
this Agreement that affect determinations as to the right to indemnification shall be applicable
similarly to any determination or obligation as to matters of contribution pursuant to this
Section 5.

     6. INDEMNIFICATION FOR EXPENSES OF A WITNESS. Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status (or
arising out of the same or relating thereto), a witness in any Proceeding to which Indemnitee is
not a party, the Company shall indemnify the Indemnitee against all Expenses actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.

     7. ADVANCEMENT OF EXPENSES.

          (a) Notwithstanding any other provision of this Agreement, the Company shall advance all
reasonable Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding by
reason of Indemnitee’s Corporate Status (including any Proceeding arising out of or relating to
Indemnitee’s Corporate Status) within fifteen

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(15) days after the receipt by the Company of a written statement or statements from
Indemnitee requesting such advance or advances from time to time, whether prior to or after final
disposition of such Proceeding. Such statement or statements shall reasonably evidence the
Expenses incurred by Indemnitee and shall be preceded or accompanied by an undertaking in the form
attached hereto as Exhibit A, manually executed by Indemnitee.

          (b) The Company shall not, as a condition precedent to or otherwise in connection with any
request to advance Expenses, assert any right to any condition, covenant, undertaking, agreement,
warranty or other term not set forth in Section 7(a) or in Exhibit A hereto. Any
advances and undertakings to repay pursuant to this Section 7 shall be unsecured and
interest free.

          (c) Notwithstanding anything herein or in Exhibit A, the Certificate or the By-laws to
the contrary, the Company shall not make or seek to make any determination that Indemnitee is not
permitted to be indemnified in respect of a Proceeding under applicable law unless (i) Indemnitee
has expressly requested to be indemnified pursuant to Section 8(a) of this Agreement or
Article Thirteenth; (ii) Indemnitee has not so requested on or before the 90th day prior
to the expiration of the statute of limitations in respect of the claim for indemnification in
respect of the Proceeding for which indemnification may be sought; or (iii) a final determination
of a court of competent jurisdiction is made with respect to the Proceeding for which
indemnification may be sought (as to which all rights of appeal have been exhausted or lapsed).

     8. PROCEDURES AND PRESUMPTIONS FOR DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION.
To better ensure that the intentions of the parties hereto are achieved, the parties agree that the
following procedures and presumptions shall apply in the event of any question as to whether
Indemnitee is entitled to indemnification under this Agreement:

          (a) To obtain indemnification under this Agreement which may, at the option of Indemnitee,
include indemnification under Article Thirteenth, Indemnitee shall submit to the Company a written
request for the same, together with a brief summary of the Proceeding as to which indemnification
is sought. The Secretary of the Company shall, promptly upon receipt of such a request for
indemnification, advise the Board in writing that Indemnitee has requested indemnification.

          (b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of
Section 8(a) hereof, other than a request solely for advancement of Expenses pursuant to
Section 7(a), a determination, if (but only if) required by applicable law, with respect to
Indemnitee’s entitlement thereto shall be made in the specific case by one of the following three
methods, which shall be at the election of Indemnitee to the extent permitted by law: (i) by a
majority vote of the Disinterested Directors, even though less than a quorum, or (ii) by
Independent Legal Counsel in a written opinion, or (iii) by the stockholders of the Company. In
the event that the Company fails or is unable to implement an election by Indemnitee it shall
promptly communicate the same to

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Indemnitee, and Indemnitee shall be afforded a right to seek a determination by another method
set forth in the proceeding sentence, provided, however that nothing in this
sentence shall preclude Indemnitee from seeking any remedy available to it in respect of such
failure or inability.

          (c) If the determination of entitlement to indemnification is to be made by Independent Legal
Counsel pursuant to Section 8(b) hereof, the Independent Legal Counsel shall be selected as
provided in this Section 8(c). The Independent Legal Counsel shall be selected by
Indemnitee (unless Indemnitee shall request that such selection be made by the Board). Indemnitee
or the Company, as the case may be, may, within 15 days after such written notice of selection
shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written
objection to such selection; provided, however, that such objection may be asserted
only on the ground that the Independent Legal Counsel so selected does not meet the requirements of
“Independent Legal Counsel” as defined in Section 1 of this Agreement, and the objection
shall set forth with particularity the factual basis of such assertion. Absent a proper and timely
objection, the person so selected shall act as Independent Legal Counsel. If a written objection
is made and substantiated, the Independent Legal Counsel selected may not serve as Independent
Legal Counsel unless and until such objection is withdrawn or a court has determined that such
objection is without merit. If, within 20 days after submission by Indemnitee of a written request
for indemnification pursuant to Section 8(a) hereof, no Independent Legal Counsel shall
have been selected and not objected to, either the Company or Indemnitee may seek judicial
resolution of any objection which shall have been made by the Company or Indemnitee to the other’s
selection of Independent Legal Counsel and/or for the appointment as Independent Legal Counsel of a
person selected by the court or by such other person as the court shall designate, and the person
with respect to whom all objections are so resolved or the person so appointed shall act as
Independent Legal Counsel under Section 8(b) hereof. The Company shall pay any and all
reasonable fees and expenses of Independent Legal Counsel incurred by such Independent Legal
Counsel in connection with acting pursuant to Section 8(b) hereof. The Company shall pay
all reasonable fees and expenses incident to the procedures of this Section 8(c),
regardless of the manner in which such Independent Legal Counsel was selected or appointed.

          (d) In making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall presume (unless there is clear and
convincing evidence to the contrary) that (i) Indemnitee is entitled to indemnification if
Indemnitee has submitted a request for indemnification in accordance with Section 8(a) of
this Agreement and (ii) all items that Indemnitee has identified as Expenses, individually and in
the aggregate, and for which Indemnitee has sought indemnification, including any request for
advancement thereof, are reasonable and entitled to indemnification. The Company shall not deny or
delay the advancement or indemnification of any Expenses for which Indemnitee has sought
indemnification on the basis that such Expenses are not reasonable or are otherwise not subject to
indemnification unless it shall have first sustained its burden of proof and burden of persuasion
to rebut the presumption set forth above in a final determination of a court of competent
jurisdiction (as to which all rights of appeal have been exhausted or

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lapsed). Anyone seeking to overcome this presumption shall have the burden of proof and the
burden of persuasion, by clear and convincing evidence.

          (e) Indemnitee shall be presumed to have acted in good faith if Indemnitee’s action is based
on the records or books of account of the Company, including financial statements, or on
information supplied to Indemnitee by the officers of the Company in the course of their duties, or
on the advice of legal counsel for the Company, the Board or any committee of the Board or on
information or records given or reports made to the Company by an independent certified public
accountant, by a financial advisor or by an appraiser or other expert selected with reasonable care
by the Company, the Board or any committee of the Board. In addition, the knowledge and/or
actions, or failure to act, of any director, officer, employee, agent or fiduciary of the Company
shall not be imputed to Indemnitee for purposes of determining the right to indemnification under
this Agreement. Whether or not the foregoing provisions of this Section 8(e) are
satisfied, it shall in any event be presumed (unless there is clear and convincing evidence to the
contrary) that Indemnitee has at all times acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking
to overcome this presumption shall have the burden of proof and the burden of persuasion, by clear
and convincing evidence.

          (f) The Company acknowledges that a settlement or other disposition short of final judgment
may be successful if it permits a party to avoid expense, delay, distraction, disruption and
uncertainty. In the event that any action, claim or proceeding to which Indemnitee is a party is
resolved in any manner other than by adverse judgment against Indemnitee (including, without
limitation, settlement of such Proceeding with or without payment of money or other consideration)
it shall be presumed (unless there is clear and convincing evidence to the contrary) that
Indemnitee has been successful on the merits or otherwise in such Proceeding. Anyone seeking to
overcome this presumption shall have the burden of proof and the burden of persuasion, by clear and
convincing evidence.

          (g) If the person, persons or entity empowered or selected under Section 8(b) to
determine whether Indemnitee is entitled to indemnification shall not have made a determination
within thirty (30) days after receipt by the Company of the request therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be entitled to such indemnification, thereto; provided, however, that the
foregoing provisions of this Section 8(g) shall not apply if the determination of
entitlement to indemnification is to be made by the stockholders pursuant to Section 8(b)
of this Agreement and if within fifteen (15) days after receipt by the Company of the request for
such determination the Board or the Disinterested Directors, if appropriate, resolve to submit such
determination to the stockholders for their consideration (i) at the next annual meeting thereof
and such determination is made thereat or (ii) if an annual meeting is not to be held within
seventy-five (75) days after such receipt, at a special meeting of stockholders held for such
purpose within seventy-five (75) days after such receipt.

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          (h) Indemnitee shall reasonably cooperate with the person, persons or entity making such
determination with respect to Indemnitee’s entitlement to indemnification, and provide to such
person, persons or entity upon reasonable advance request any documentation or information which is
under the control of or in the possession of Indemnitee and reasonably necessary to such
determination. Nothing in this Agreement shall require Indemnitee to waive any of Indemnitee’s
rights under the United States Constitution or to provide information which is privileged or
otherwise protected from disclosure. Any Independent Legal Counsel, member of the Board, or
stockholder of the Company shall act reasonably and in good faith in making a determination under
the Agreement of Indemnitee’s entitlement to indemnification. Any costs or expenses (including
attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company (irrespective of the
determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies
and agrees to hold Indemnitee harmless therefrom.

          (i) Neither the failure of the Company (including by the Board or Independent Legal Counsel)
to have made a determination prior to the commencement of any action pursuant to this Agreement
that indemnification is proper in the circumstances because Indemnitee has met the applicable
standard of conduct nor an actual determination by the Company (including by the Board or
Independent Legal Counsel) that Indemnitee has not met such applicable standard of conduct, shall
be a defense to the action or create a presumption that Indemnitee has not met the applicable
standard of conduct. The termination of a Proceeding by judgment, order, settlement or conviction,
or upon a plea of nolo contendere or its equivalent, shall not, of itself, (i) establish that
Indemnitee does not meet the criteria for entitlement to indemnification set forth in Section
3 or (ii) otherwise adversely affect the rights of Indemnitee to indemnification except as may
be provided herein.

          (j) Promptly after a determination has been made or is deemed to have been made that
Indemnitee is entitled to indemnification in respect of any Proceeding, or, if no such
determination is then required by law, within 30 days after receipt by the Company of a request for
indemnification pursuant to Section 8(a) the Company shall pay to Indemnitee all amounts
for which Indemnitee has sought indemnification. The Company shall not deny or delay payment of
any amount for which Indemnitee has sought indemnification for any reason unless a determination is
required by law to be made and has been made in the specific case that Indemnitee is not entitled
to Indemnification.

     9. REMEDIES.

          (a) In the event that (i) a determination is made pursuant to Section 8 of this
Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement
of Expenses is not timely made pursuant to this Agreement, (iii) no determination of entitlement to
indemnification shall have been made pursuant to Section 8(b) of this Agreement within 60
days after receipt by the Company of the request for indemnification, (iv) payment of
indemnification is not made pursuant to this

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Agreement within fifteen (15) days after receipt by the Company of a written request therefor,
or (v) payment of indemnification is not made within fifteen (15) days after a determination has
been made that Indemnitee is entitled to indemnification or such determination is deemed to have
been made pursuant to Section 8 of this Agreement, Indemnitee shall be entitled to an
adjudication of Indemnitee’s entitlement to such indemnification. The Company shall not oppose
Indemnitee’s right to seek any such adjudication.

          (b) In the event that a determination shall have been made pursuant to Section 8(b) of
this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding
commenced pursuant to this Section 9 shall be conducted in all respects as a de novo trial,
on the merits and Indemnitee shall not be prejudiced in any way by reason of that adverse
determination.

          (c) If a determination shall have been made pursuant to Section 8(b) of this Agreement
that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in
any judicial proceeding commenced pursuant to this Section 9, absent a prohibition of such
indemnification under applicable law.

          (d) In the event that Indemnitee, pursuant to this Section 9, seeks a judicial
adjudication of Indemnitee’s rights under, or to recover damages for breach of, this Agreement, or
to recover under any directors’ and officers’ liability insurance policies maintained by the
Company, the Company shall pay on Indemnitee’s behalf, in advance (within 10 days of receipt by the
Company of any request therefore), any and all expenses (including for these purposes all items
contemplated to be within the meaning of the term “Expenses” as if such adjudication were a
Proceeding) actually and reasonably incurred by Indemnitee in connection with such judicial
adjudication, regardless of whether Indemnitee ultimately is determined to be entitled to such
indemnification, advancement of expenses or insurance recovery.

          (e) The Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Section 9 that the procedures and presumptions of this Agreement are not
valid, binding and enforceable and shall stipulate in any such court that the Company is bound by
all the provisions of this Agreement and, in the event the Company shall hereafter fail to comply
with this covenant, to the fullest extent permitted by law, the Company hereby irrevocably and
unconditionally stipulates for the purpose of any such proceeding that such procedures and
presumptions are valid, binding and enforceable against it and that it is bound by all the
provisions of this Agreement.

          (f) In the event that Indemnitee commences a judicial proceeding or arbitration pursuant to
this Section 9, Indemnitee shall not be required to reimburse the Company for any advances
of expenses, pursuant to Section 7 or otherwise, until a final determination is made by a
court of competent jurisdiction with respect to Indemnitee’s entitlement to Indemnification (as to
which all rights of appeal have been exhausted or lapsed). Interest shall be paid by the Company
to Indemnitee at the legal rate under Delaware law for amounts which the Company indemnifies or is
obliged to indemnify for the period commencing with the date on which Indemnitee requests
indemnification (or

11

 

reimbursement or advancement of any expenses) and ending with the date on which such payment
is made to the Indemnitee by the Company.

     10. NON-EXCLUSIVITY; SURVIVAL OF RIGHTS; INSURANCE; SUBROGATION.

          (a) The rights of indemnification and advancement of Expenses provided by this Agreement shall
not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under
applicable law, the Certificate, the By-laws, any agreement, a vote of stockholders or a resolution
of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any
provision hereof or of the Certificate or the By-laws or of any provision thereof shall limit or
restrict any right of Indemnitee under this Agreement, the Certificate or the By-laws in respect of
any action taken or omitted by Indemnitee in Indemnitee’s Corporate Status prior to such amendment,
alteration or repeal. To the extent that a change in the law, whether by statute or judicial
decision, permits greater indemnification than would be afforded currently under this Agreement,
the Certificate or the By-laws it is the intent of the parties hereto that Indemnitee shall enjoy
by this Agreement the greater benefits so afforded by such change. No right or remedy herein
conferred is intended to be exclusive of any other right or remedy, and every other right and
remedy shall be cumulative and in addition to every other right and remedy given hereunder or now
or hereafter existing at law or in equity or otherwise. The assertion or employment of any right
or remedy hereunder, or otherwise, shall not prevent the concurrent or later assertion or
employment of any other right or remedy.

          (b) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, agents or fiduciaries of the Company or of
any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise
which such person serves at the request of the Company, Indemnitee shall be covered by such policy
or policies in accordance with its or their terms to the maximum extent of the coverage available
for any such director, officer, employee, agent or fiduciary under such policy or policies.

          (c) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of an Indemnitee, who shall execute all
papers required and take all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Company to bring suit to enforce such rights.

          (d) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually
received an indemnification, insurance or similar payment therefore under any insurance policy,
contract or agreement or otherwise pursuant to the exercise of statutory rights or as a result of
any Proceeding.

12

 

     11. EXCEPTION TO RIGHT OF INDEMNIFICATION. Notwithstanding any other provision of
this Agreement, Indemnitee shall not be entitled under this Agreement:

          (a) to indemnification or advancement of expenses with respect to any Proceeding brought by
Indemnitee, or any claim therein (except proceedings and claims brought to enforce rights to
indemnification under this Agreement or Article Thirteenth and claims by way of defense,
counterclaim or crossclaim), unless (i) the bringing of such Proceeding or making of such claim
shall have been approved by the Board, or (ii) as otherwise required under Section 145 of the
General Corporation Law of the State of Delaware, regardless of whether Indemnitee is determined to
be entitled to such indemnification or insurance recovery as the case may be; or

          (b) to indemnification or advancement of expenses with respect to any Proceeding for an
accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of
securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of
1934, as amended, or similar provisions of state statutory law or common law; or

          (c) to indemnification in respect of conduct which has been finally determined by a court of
competent jurisdiction (as to which all rights of appeal have been exhausted or lapsed) to have
been knowingly fraudulent or to constitute intentional misconduct or knowing violation of the law.

     12. DURATION OF AGREEMENT. All agreements and obligations of the Company contained
herein shall continue during the period Indemnitee is serving as a director, officer, employee,
agent or fiduciary of the Company or is serving at the request of the Company as a director,
officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise and shall continue thereafter so long as Indemnitee may
be subject to any possible Proceeding (or any proceeding commenced under Section 9 hereof)
by reason of (or arising out of or relating to) Indemnitee’s Corporate Status, whether or not
Indemnitee is acting or serving in any such capacity at the time such Proceeding is commenced or at
the time any liability or expense is incurred for which indemnification can be provided under this
Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by
the parties hereto and their respective successors (including any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the business or assets
of the Company), assigns, spouses, heirs, executors, administrators, and personal and legal
representatives. The Company shall not effect any sale, lease, exchange or other disposition of
all or substantially all of its assets determined on either an unconsolidated or consolidated basis
(in one or a series of related transactions) or be party to any merger, consolidation or similar
transaction in which it is not the surviving entity unless the acquiring or surviving entity agrees
in writing to (and does) assume all obligations of the Company under this Agreement, it being
understood and agreed that this Agreement shall continue in full force and effect after any such
transaction, and such surviving entity shall be bound by the terms hereof, whether or not this
sentence has been complied with. This Agreement shall continue in effect regardless

13

 

of whether Indemnitee continues to serve as an officer or director of the Company or any other
enterprise at the Company’s request.

     13. ENFORCEMENT.

          (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce Indemnitee to serve or continue to
serve in Indemnitee’s Corporate Status (and to eliminate any uncertainty regarding Indemnitee’s
continuing enforceable rights to indemnification, advancement of expenses and contribution for acts
or omissions occurring before, on or after the date hereof), and the Company acknowledges that
Indemnitee is relying upon this Agreement in serving or continuing to serve in any Corporate
Status, now or hereafter. The Company and Indemnitee concur that such service of Indemnitee, and
the warranties, covenants and agreements of the Company and Indemnitee contained herein comprise
good and valuable consideration the receipt and sufficiency of which are hereby acknowledged.

          (b) This Agreement, including Exhibit A hereto which is an integral part of this
Agreement and, to the extent enforcement may be sought hereunder, Article Thirteenth, constitute
the entire agreement between the parties hereto with respect to the subject matter hereof and
supersede all prior agreements and understandings, oral, written and implied, between the parties
hereto with respect to the subject matter hereof. It is understood and agreed that Article
Thirteenth which, at the election of Indemnitee may be enforced hereunder, is also an independent
right which may be enforced by Indemnitee independently of or concurrently with Indemnitee’s rights
under this Agreement.

          (c) The obligations of the Company and the rights of the Indemnitee pursuant to this
Agreement, including those that may arise under Article Thirteenth, are fully effective and vested
on the date of this Agreement, are for indemnification, advancement of Expenses and contribution in
respect of any action actually or alleged to have been taken or omitted by Indemnitee in any
Corporate Status regardless of whether such action or omission occurred prior to the date hereof or
hereafter, are not contingent or dependent upon the occurrence or existence of any other fact,
circumstance or event, and may not be limited or narrowed in any way after the date of this
Agreement, whether before or after any Proceeding with respect to any such actual or alleged action
or omission is commenced, except by an amendment hereto expressly agreed to in a writing manually
executed by the Indemnitee and delivered to the Company.

          (d) The Company and the Indemnitee agree that irreparable damage would occur in the event that
any of the provisions of this Agreement were not performed in accordance with their specific terms
or were otherwise breached. It is accordingly agreed that they each will be entitled to an
injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the
terms and provisions of this Agreement, this being in addition to any other remedy to which they
are entitled at law or in equity.

14

 

     14. SEVERABILITY. If any provision or provisions of this Agreement shall be held by a
court of competent jurisdiction to be invalid, void, illegal or otherwise unenforceable for any
reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of
this Agreement (including without limitation, each portion of any section of this Agreement
containing any such provision held to be invalid, void, illegal or unenforceable, that is not
itself invalid, illegal, void or otherwise unenforceable) shall not in any way be affected or
impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) to the
fullest extent possible, this Agreement and the provisions hereof (including, without limitation,
each portion of any section of this Agreement containing any such provision held to be invalid,
illegal, void or otherwise unenforceable, that is not itself invalid, illegal, void or otherwise
unenforceable) shall be construed so as to give effect to the intent manifested thereby and the
intended interpretation of this Agreement as expressed herein; and (c) a court shall have the power
to fashion and enforce another provision (or portion thereof), instead of any invalid, void,
illegal or otherwise unenforceable provision hereof (or portion thereof), that is enforceable to
carry out the intent of such provision and this Agreement as expressed herein.

     15. MODIFICATION AND WAIVER. No supplement, modification, termination or amendment of
this Agreement shall be binding or enforceable against the parties hereto unless the same is (i)
made by a court of competent jurisdiction pursuant to Section 14 hereof, (ii) if
enforcement is sought against Indemnitee, set forth in a writing manually executed by Indemnitee
and delivered to the Company; or (iii) if enforcement is sought against the Company, set forth in a
writing manually executed by the Company and delivered to the Indemnitee. The Company shall not
supplement, modify, terminate or amend the Certificate or By-laws, or any provision thereof, if the
effect thereof would directly or indirectly limit, narrow or diminish in any way any rights
thereunder in respect of indemnification, advancement of expenses or contribution (including
procedural rights and presumptions) from those in existence immediately prior to such supplement,
amendment, termination or modification. No waiver of any of the provisions of this Agreement shall
be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor
shall such waiver constitute a continuing waiver.

     16. NOTICE BY INDEMNITEE. Indemnitee agrees promptly to notify the Company in writing
upon being served with any summons, citation, subpoena, complaint, indictment, information or other
document relating to any Proceeding or matter which may be subject to indemnification covered
hereunder. The failure to so notify the Company shall not relieve the Company of any obligation
which it has to Indemnitee under this Agreement or otherwise.

     17. NOTICES. All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been duly given if (i) delivered by and receipted for by
the party to whom said notice or other communication shall have been directed or if (ii) mailed by
certified or registered mail with postage prepaid, on the third business day after the date on
which it is so mailed or (iii) on the first business day

15

 

following the date on which it is mailed if delivered by a nationally recognized next-day
courier service:

	 	(a)	 	If to Indemnitee, to:
	 
	 	(b)	 	If to the Company, to:
	 
	 	 	 	LifePoint Hospitals, Inc.

103 Powell Court, Suite 200

Brentwood, Tennessee 37027

Attn: Corporate Secretary
	 
	 	 	 	With copies to:
	 
	 	 	 	Dewey & LeBoeuf LLP

1301 Avenue of the Americas

New York, NY 10019

Attention: Frank R. Adams, Esq.

     18. IDENTICAL COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. The signatures of both parties need not
appear on the same counterpart, and delivery of an executed counterpart signature page by facsimile
is as effective as executing and delivering this Agreement manually in the presence of the other
party thereto. Only one such counterpart signed by the party against whom enforceability is sought
needs to be produced to evidence the existence of this Agreement.

     19. HEADINGS. The headings of the paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

     20. GOVERNING LAW. The parties agree that this Agreement, and all matters arising out
of or related to this Agreement, shall be governed by, and interpreted, construed and enforced in
accordance with, the laws of the State of Delaware but without giving effect to the applicable
conflict of laws principles thereof to the extent that the application of the laws of another
jurisdiction would be required thereby. The Company and Indemnitee hereby irrevocably and
unconditionally (i) agree that any action or proceeding arising out of or in connection with this
Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware
Court”), and not in any other

16

 

state or federal court in the United States of America or any court in any other country, (ii)
consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or
proceeding arising out of or in connection with this Agreement, (iii) irrevocably appoint and name,
to the extent such party is not otherwise subject to service of process in the State of Delaware,
Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808 as its
agent in the State of Delaware, including as such party’s agent for acceptance of legal process in
connection with any such action or proceeding against such party with the same legal force and
validity as if served upon such party personally within the State of Delaware, (iv) waive any
objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v)
waive, and agree not to plead or to make, any claim that any such action or proceeding brought in
the Delaware Court has been brought in an improper or inconvenient forum.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	LIFEPOINT HOSPITALS, INC.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 

	 

Indemnitee
	 

17

 

Exhibit A

UNDERTAKING

     1. I, [insert name], am the Indemnitee defined as such under that certain Indemnification
Agreement (the “Indemnification Agreement”) made and entered into as of the [l] day
of [l] 20__, by and between me and LifePoint Hospitals, Inc. (“LifePoint”), and I may
also be entitled to certain rights to advancement under the Amended and Restated Articles of
Incorporation of LifePoint Hospitals, Inc. (“LifePoint”), in particular Article Thirteenth
thereof (“Article Thirteenth”).1 I have read and understand the Indemnification
Agreement and the Amended and Restated Articles of Incorporation of LifePoint, in particular
Article Thirteenth. Capitalized terms used but not defined herein shall have the meanings ascribed
to them in the Indemnification Agreement.

     2. I am involved in a [insert brief description of the proceeding] (the “Proceeding”).

     3. I understand that:

(i)  pursuant to the Indemnification Agreement certain Expenses shall be advanced to
me in accordance with the terms of the Indemnification Agreement upon receipt of
this undertaking, and

(ii)  pursuant to Article Thirteenth, costs, charges, and expenses (including
attorneys’ fees) incurred by me in defending the Proceeding shall be paid by
LifePoint in advance of the final disposition of the Proceeding, in accordance with
the procedures set forth in such Article, upon receipt of an undertaking by me to
repay all amounts so advanced in the event that it shall ultimately be determined
that I am not entitled to be indemnified by LifePoint.

     4. I hereby request that LifePoint advance (i) in accordance with the terms of the
Indemnification Agreement, all Expenses incurred by me or on my behalf in connection with such
Proceeding, and (ii) to the extent applicable, in accordance with the terms of Article Thirteenth,
all costs, charges and expenses (including attorneys’ fees) incurred by me in defending the
Proceeding (it being understood and agreed that in the event of any conflict between the preceding
clauses (i) and (ii), the provisions providing for advancement of Expenses that are most favorable
to Indemnitee, including as to the amount and promptness of advance payments, shall be honored).

     5. (a) I undertake to repay all amounts advanced in the event that it shall ultimately be
determined that I am not entitled to indemnification by LifePoint, it being understood and agreed
that, in respect of any amount which is permitted to be advanced under both the Indemnification
Agreement and Article Thirteenth, I am not obligated to repay such amount unless and until it has
been determined that I am not entitled to indemnification in respect thereof under both of the
Indemnification Agreement and Article Thirteenth (with respect to the latter, whether or not I have
specifically sought advancement of Expenses thereunder).

 

			
	1	 	At the option and sole discretion of Indemnitee,
Clauses 3(ii) and 4(ii) of this undertaking may be omitted at the time
this undertaking is provided. It is understood and agreed that no such
omission shall be deemed an admission by Indemnitee that advancement of
expenses or indemnification pursuant to Article Thirteenth is not available to
Indemnitee or an election of remedies by Indemnitee.

 

Exhibit A

          (b) If, when and to the extent that the Company determines (in accordance with the
presumptions, burdens and procedures set forth in, and terms and conditions of, the Indemnification
Agreement, including for the avoidance of doubt those set forth in Section 7 and
Section 8 of the Indemnification Agreement) that I am not permitted to be indemnified under
applicable law, the Company shall be entitled to be reimbursed by me for all such amounts
theretofore paid to me as advancement of Expenses within thirty (30) days of the later of the date
of such determination and the date on which the judicial determination contemplated by clause (iii)
of Section 7(c) of the Indemnification Agreement ceases to be subject to appeal.

*  *  *

          I have made this undertaking required by the Indemnification Agreement as of the date written
under my signature below.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[Insert Name]	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:exv10w40

Exhibit 10.40

FIFTH AMENDMENT AGREEMENT

This Fifth Amendment Agreement dated as of August 28, 2008 (“Fifth Amendment”) is entered into with
reference to the Revolving Loan Agreement dated as of November 22, 2005, as amended (the “Loan
Agreement”), among KB HOME, a Delaware corporation (“Borrower”), the Banks party thereto, and Bank
of America, N.A., as Administrative Agent. Borrower and the Administrative Agent, acting on behalf
of the Required Banks under the Loan Agreement, agree to amend the Loan Agreement as follows:

	1.	 	Definitions. Capitalized terms used but not defined herein have the meanings set
forth in the Loan Agreement.

	2.	 	Amendments to Section 1.1 — Defined Terms.

	 	(a)	 	The definition of “Applicable Rates” set forth in Section 1.1 of the Loan
Agreement shall be amended to read in its entirety as follows:
	 
	 	 	 	“Applicable Rates” means, as of any date of determination, the following
percentages per annum, based upon the Applicable Pricing Level on that date:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable Letter of
	 	 	Applicable	 	Applicable	 	Credit Fee
	Applicable	 	Base Rate	 	Commitment	 	Applicable Eurodollar
	Pricing Level	 	Spread	 	Fee Rate	 	Rate Spread
	I
	 	0.000%
	 	0.350%
	 	1.375%
	II
	 	0.000%
	 	0.375%
	 	1.500%
	III
	 	0.000%
	 	0.400%
	 	1.750%
	IV
	 	0.000%
	 	0.425%
	 	2.000%
	V
	 	0.000%
	 	0.450%
	 	2.250%

	 	(b)	 	The definition of “Borrowing Base Certificate” set forth in Section 1.1 of
the Loan Agreement shall be amended by revising the form of Borrowing Base Certificate
contained in Exhibit B of the Loan Agreement to read in its entirety as set
forth in Annex I hereto.
	 
	 	(c)	 	The definition of “Commitment” set forth in Section 1.1 of the Loan Agreement
shall be amended to read in its entirety as follows:

“Commitment” means, subject to Sections 2.6, 2.7 and 2.9,
$800,000,000. The Pro Rata Shares of the Banks with respect to the
Commitment are set forth in Schedule 1.1.

	 	(d)	 	The definition of “Compliance Certificate” set forth in Section 1.1 of the
Loan Agreement shall be amended by revising the form of Compliance Certificate
contained in Exhibit C of the Loan Agreement to read in its entirety as set
forth in Annex II hereto.

-1-

 

	 	(e)	 	The definition of “Consolidated Interest Coverage Ratio” set forth in Section
1.1 of the Loan Agreement shall be amended to read in its entirety as follows:

“Consolidated Interest Coverage Ratio” means, as of any date of
determination, the ratio of (a) Consolidated Adjusted EBITDA for the 12
month period ending on such date to (b) Consolidated Interest Expense for
the 12 month period ending on such date.

	 	(f)	 	The definition of “Consolidated Interest Expense” set forth in Section 1.1 of
the Loan Agreement shall be amended to read in its entirety as follows:

“Consolidated Interest Expense” means, for any period, the aggregate
amount of interest, fees, charges and related expenses (but excluding
(i) premiums and non-cash amounts arising as a result of prepayment or
extinguishment of Indebtedness, (ii) Non-Cash Convertible Debt Interest
Expenses and (iii) accretion of original issue discount on long-term debt)
paid or payable to a lender by Borrower and its Consolidated Subsidiaries on
a consolidated basis in connection with borrowed money (including any
capitalized interest) and the interest portion of any capitalized lease
payments less interest income of Borrower and its Consolidated Subsidiaries
on a consolidated basis.

	 	(g)	 	The definition of “Consolidated Leverage Ratio” set forth in Section 1.1 of
the Loan Agreement shall be amended to read in its entirety as follows:

“Consolidated Leverage Ratio” means, as of any date of
determination, the ratio of (a) Consolidated Total Indebtedness on
that date to (b) the sum of (i) Consolidated Tangible Net Worth plus
(ii) the cumulative net amount of all Deferred Tax Valuation Allowances (not
to exceed $721,753,000 in the aggregate), each as of that date determined in
accordance with Generally Accepted Accounting Principles consistently
applied; provided, however, that for purposes of determining
the Applicable Pricing Level, “Consolidated Leverage Ratio” means, as of any
date of determination, the ratio of (a) Consolidated Total
Indebtedness on that date to (b) Consolidated Tangible Net Worth on that
date.

	 	(h)	 	The definition of “Consolidated Total Indebtedness” set forth in Section 1.1
of the Loan Agreement shall be amended to read in its entirety as follows:

“Consolidated Total Indebtedness” means, as of any date of
determination, all Indebtedness and Contingent Guaranty Obligations of
Borrower and its Consolidated Subsidiaries on a consolidated basis on that
date (without duplication for any guaranty by Borrower of a Consolidated
Subsidiary’s Indebtedness or any guaranty by a Consolidated Subsidiary of
either Borrower’s or another Consolidated Subsidiary’s Indebtedness or
otherwise) minus (a) all Indebtedness and Contingent Guaranty
Obligations of Financial Subsidiaries on a consolidated basis (but only to
the extent that such Financial Subsidiaries are also Consolidated
Subsidiaries and there is no recourse to Borrower or any other Consolidated
Subsidiary) on that date minus (b) all Indebtedness and Contingent
Guaranty Obligations of Foreign Subsidiaries of the Borrower on a
consolidated basis (but only to the extent that such Foreign Subsidiaries of
the Borrower are also Consolidated Subsidiaries and there is no recourse to
Borrower or any other Consolidated Subsidiary or any of their respective
Property) on that date minus (c) the greater of (X) the amount, if
any, by which Cash and Cash Equivalents of Borrower and its Consolidated
Subsidiaries (other than the

-2-

 

Financial Subsidiaries and Foreign Subsidiaries) on a consolidated basis on
that date exceed the sum of (i) Total Outstandings (excluding the aggregate
undrawn face amount of outstanding Letters of Credit) and (ii) $15,000,000
and (Y) the amount, if any, by which all Cash and Cash Equivalents of
Borrower and its Consolidated Subsidiaries (other than the
Financial Subsidiaries and Foreign Subsidiaries) on a consolidated basis on
that date other than Unrestricted Cash exceed $15,000,000.

	 	(i)	 	The definition of “Pro Rata Share” set forth in Section 1.1 of the Loan
Agreement shall be amended by revising Schedule 1.1 of the Loan Agreement to
read in its entirety as set forth in Annex III hereto.
	 
	 	(j)	 	The definition of “ Shareholders’ Equity” set forth in Section 1.1 of
the Loan Agreement shall be amended to read in its entirety as follows:

“Shareholders’ Equity” means, as of any date of determination,
shareholders’ equity (including preferred stock) as of that date determined
in accordance with Generally Accepted Accounting Principles consistently
applied; provided that there shall be excluded from Shareholders’ Equity any
amount attributable to capital stock (including preferred stock) that is,
directly or indirectly, required to be redeemed or repurchased by the issuer
thereof prior to the date which is one year after the Maturity Date or upon
the occurrence of specified events or at the election of the holder thereof.

	 	(k)	 	The definition of “Unrestricted Cash” set forth in Section 1.1 of the Loan
Agreement shall be amended to read in its entirety as follows:

“Unrestricted Cash” means, as of any date of determination, the Cash
and Cash Equivalents of Borrower and its Borrowing Base Subsidiaries to the
extent that such Cash and Cash Equivalents are free and clear of all Liens
and Rights of Others and are not subject to any restriction (including the
restrictions on the Reserve Account set forth in Section 6.11) pursuant to
any Contractual Obligations.

	 	(l)	 	Section 1.1 of the Loan Agreement shall be amended by adding the new
definitions below in their appropriate alphabetical positions:

“Applicable Reserve Account Multiplier” means: (i) four (4), for
the period beginning on the date of this Fifth Amendment and continuing
until the day the Compliance Certificate for the Fiscal Quarter ending
November 30, 2009 is delivered by Borrower; (ii) three (3), for the period
beginning on the first day after the Compliance Certificate for the Fiscal
Quarter ending November 30, 2009 is delivered by Borrower and continuing
until the day the Compliance Certificate for the Fiscal Quarter ending
February 28, 2010 is delivered by Borrower; (iii) two (2), for the period
beginning on the first day after the Compliance Certificate for the Fiscal
Quarter ending February 28, 2010 is delivered by Borrower and continuing
until the day the Compliance Certificate for the Fiscal Quarter ending May
31, 2010 is delivered by Borrower; and (iv) one (1), for the period
beginning on the first day after the Compliance

-3-

 

Certificate for the Fiscal Quarter ending May 31, 2010 is delivered by
Borrower and continuing until the Maturity Date.

“Deferred Tax Valuation Allowance” means the valuation allowance
applied to deferred tax assets resulting from the application of FASB
Statement No. 109, Accounting for Income Taxes, or otherwise required in
accordance with Generally Accepted Accounting Principles consistently
applied.

“Fifth
Amendment” means the Fifth Amendment Agreement dated as of
August 28, 2008, which amends this Agreement.

“Minimum Reserve Amount” has the meaning set forth in Section 6.11.

“Non-Cash Convertible Debt Interest Expenses” means non-cash
interest expense applied to convertible debt instruments resulting from the
application of FASB Staff Position APB 14-1, Accounting for Convertible Debt
Instruments That May Be Settled in Cash upon Conversion (Including Partial
Cash Settlement), or otherwise required in accordance with Generally
Accepted Accounting Principles consistently applied.

“Reserve Account” has the meaning set forth in Section 6.11.

“Third Amendment” means the Third Amendment Agreement dated as of
August 17, 2007, which amends this Agreement.

	3.	 	Amendment to Section 2.4 — Reduction of Swing Line. Section 2.4(a) of the Loan
Agreement shall be amended to read in its entirety as follows:

	 	(a)	 	Subject to the terms and
conditions set forth herein, the Swing Line Bank agrees, in
reliance upon the agreements of the other Banks set forth in
this Section 2.4, to make Swing Line Loans to Borrower from time
to time from the Closing Date through the Business Day
immediately preceding the Maturity Date in such amounts as
Borrower may request, provided that (i) giving effect to
such Swing Line Loan, the Swing Line Outstandings do not exceed
$60,000,000, (ii) the conditions to an Advance specified in
Article VIII have been satisfied (other than delivery of
a Loan Notice), (iii) without the consent of all of the Banks,
no Swing Line Loan may be made during the continuation of an
Event of Default, (iv) the Swing Line Bank has not given at
least 24 hours prior notice to Borrower that availability under
the Swing Line is suspended or terminated, (v) after giving
effect to such Swing Line Loan, the Total Outstandings shall not
exceed the Commitment and (vi) in no event shall the Swing Line
Bank be obligated to make a Swing Line Loan to Borrower if,
after giving effect to such Swing Line Loan, the provisions of
Section 6.17 would be violated. Borrower may borrow, repay and
reborrow under this Section 2.4. Unless notified to the
contrary by the Swing Line Bank, borrowings under the Swing Line
shall be made in amounts which are integral multiples of
$100,000.

-4-

 

	 	 	 	Unless notified to the contrary by the Swing Line Bank, each
repayment of a Swing Line Loan shall be in an amount which is
an integral multiple of $100,000. A Swing Line Loan may, at
any time and from time to time, voluntarily be prepaid at the
election of Borrower in whole or in part without premium or
penalty. Each Swing Line Loan shall be made pursuant to
Borrower’s irrevocable Swing Line Loan Notice to the
Administrative Agent at the Administrative Agent’s Office not
later than 4:00 p.m. Los Angeles time on the day the
requested Swing Line Loan is to be made. Each telephonic
Swing Line Loan Notice by the Borrower pursuant to this
Section 2.4(a) must be confirmed promptly by delivery to the
Administrative Agent of a written Swing Line Loan Notice,
appropriately completed and signed by a Responsible Official
of the Borrower.

	4.	 	Amendment to Section 2.5 — Reduction of Letter of Credit Commitment. Section
2.5(a) of the Loan Agreement shall be amended to read in its entirety as follows:

	 	(a)	 	Letter of Credit
Commitment. Subject to the terms and conditions of this
Agreement (including Section 8.3), Borrower may request
from time to time during the period from the Closing Date
through the day 30 days prior to the Maturity Date (unless the
Issuing Bank otherwise agrees to a later date prior to the
Maturity Date) that the Issuing Bank, in reliance upon the
agreements of the other Banks set forth in this Section 2.5,
issue Letters of Credit for the account of Borrower, and the
Issuing Bank agrees to issue for the account of Borrower one or
more Letters of Credit and to amend Letters of Credit previously
issued by it in accordance with Section 2.5(b), provided
that (i) Borrower shall not request that the Issuing Bank issue
any Letter of Credit if, after giving effect to such issuance,
the Total Outstandings exceeds the Commitment, (ii) Borrower
shall not request that the Issuing Bank issue any Letter of
Credit if, after giving effect to such issuance, Borrower would
not be in compliance with Section 6.17, (iii) Borrower shall not
request that the Issuing Bank issue any Letter of Credit having
an expiration date that is beyond 364 days from the Maturity
Date and (iv) the Borrower shall not request that the Issuing
Bank issue any Letter of Credit if, after giving effect to such
issuance, the Letter of Credit Usage would exceed $600,000,000
or any limit established by Law after the Closing Date on the
Issuing Bank’s ability to issue the requested Letter of Credit
at any time. Notwithstanding the foregoing, the Issuing Bank
shall not issue any Letter of Credit if, (A) on or prior to the
Business Day immediately preceding the issuance thereof any Bank
has notified the Issuing Bank in writing that the conditions set
forth in Section 8.3 have not been satisfied with respect to the
issuance of such Letter of Credit, (B) the expiry date of such
requested Letter of Credit would occur after 364 days from the
Maturity Date, unless all of the Banks have approved such expiry
date, or

-5-

 

	 	 	 	(C) after issuing such Letter of Credit the provisions of
Section 6.17 would be violated. The Issuing Bank shall not
be obligated to issue any Letter of Credit if, (x) any order,
judgment or decree of any Governmental Agency or arbitrator
shall by its terms purport to enjoin or restrain the Issuing
Bank from issuing such Letter of Credit, or any Law
applicable to the Issuing Bank or any request or directive
(whether or not having the force of law) from any
Governmental Agency with jurisdiction over the Issuing Bank
shall prohibit, or request that the Issuing Bank refrain
from, the issuance of letters of credit generally or such
Letter of Credit in particular or shall impose upon the
Issuing Bank with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which the
Issuing Bank is not otherwise compensated hereunder) not in
effect on the Closing Date, or shall impose upon the Issuing
Bank any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which the Issuing Bank in
good faith deems material to it, (y) the issuance of such
Letter of Credit would violate one or more policies of the
Issuing Bank applicable to the customers of the Issuing Bank
generally, or (z) a default of any Bank’s obligations to fund
under Section 2.5(c) exists or any Bank is at such time a
Defaulting Bank hereunder, unless the Issuing Bank has
entered into satisfactory arrangements with the Borrower or
such Bank to eliminate the Issuing Bank’s risk with respect
to such Bank.

	5.	 	Amendment to Section 2.6 — Reduction of Commitment. Section 2.6 of the Loan
Agreement shall be amended to read in its entirety as follows:

	 	2.6	 	Reduction of Commitment.

	 	(a)	 	Borrower shall have the right, at
any time and from time to time, without penalty or charge, upon
at least 5 Business Days prior written notice voluntarily to
reduce or terminate permanently and irrevocably, in aggregate
principal amounts in an integral multiple of $1,000,000 but not
less than $5,000,000 (unless all of the unused Commitment is
being terminated), all or a portion of the unused Commitment.
Borrower shall pay to the Administrative Agent (for the account
of each Bank, pro rata according to that Bank’s Pro Rata Share)
on the date of such termination all unpaid commitment fees which
have accrued to such date in respect of the terminated portion
of the Commitment.
	 
	 	(b)	 	If, at the end of any Fiscal
Quarter, Consolidated Tangible Net Worth is less than or equal
to $800,000,000 but greater than $500,000,000, then the
Commitment shall be automatically and permanently reduced to
$650,000,000 as of the date when the Compliance Certificate for
such Fiscal Quarter is required to be delivered pursuant to
Section 7.2.

-6-

 

	 	(c)	 	If, at the end of any Fiscal
Quarter, Consolidated Tangible Net Worth is less than or equal
to $500,000,000, then the Commitment shall be automatically and
permanently reduced to $500,000,000 as of the date when the
Compliance Certificate for such Fiscal Quarter is required to be
delivered pursuant to Section 7.2.
	 
	 	(d)	 	Upon any reduction of the
Commitment pursuant to this Section 2.6, the Pro Rata Share of
the Commitment of each Bank shall be reduced by such Bank’s Pro
Rata Share of such reduction amount. All interests and fees
accrued until the effective date of any reduction of the
Commitment shall be paid on the effective date of such reduction
for such reduction amount.

	6.	 	Amendment to Section 2.8 — Borrowing Base. Section 2.8(b)(v) of the Loan Agreement
shall be amended to read in its entirety as follows:

	 	(v)	 	Unrestricted Cash. 100% of the amount
(but only if such amount is a positive number) equal to (x)
Unrestricted Cash minus (y) the sum of (I) Total Outstandings
(excluding the aggregate undrawn face amount of outstanding Letters of
Credit) and (II) $15,000,000;

	7.	 	Amendment to Section 6.1 — Payment or Prepayment of Subordinated Obligations.
Section 6.1 of the Loan Agreement shall be amended to read in its entirety as follows:

	 	6.1	 	Payment or Prepayment of Subordinated
Obligations.

	 	(a)	 	Make any payment with respect to
any Subordinated Obligation in violation of the provisions in the
instruments governing such Subordinated Obligation;
	 
	 	(b)	 	At all times the Consolidated
Interest Coverage Ratio is greater than or equal to 2:00 to 1:00,
if a Default or Event of Default then exists or would result
therefrom, (i) make an optional or unscheduled payment or
prepayment of any principal (including an optional or unscheduled
sinking fund payment), interest or any other amount with respect
to any Subordinated Obligation, or (ii) make a purchase or
redemption of any Subordinated Obligation; or
	 
	 	(c)	 	At all times the Consolidated
Interest Coverage Ratio is less than 2:00 to 1:00, (i) make an
optional or unscheduled payment or prepayment of any principal
(including an optional or unscheduled sinking fund payment),
interest or any other amount with respect to any Subordinated
Obligation, or (ii) make a purchase or redemption of any
Subordinated Obligation; provided, however, that
the restrictions set forth in this clause (c) shall not apply if
all of the following conditions are met:

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	 	(A)	 	Unrestricted Cash
(calculated on a pro forma basis after giving effect to
such payment, prepayment, purchase or redemption) equals
or exceeds the Commitment;
	 
	 	(B)	 	Total
Outstandings (excluding the aggregate undrawn face
amount of outstanding Letters of Credit) are zero; and
	 
	 	(C)	 	no Default or
Event of Default then exists or would result therefrom.

	8.	 	Amendment to Section 6.9 — Consolidated Tangible Net Worth Covenant. Section 6.9
of the Loan Agreement shall be amended to read in its entirety as follows:

	 	6.9	 	Consolidated Tangible Net Worth.
Permit Consolidated Tangible Net Worth to be, at the end of any Fiscal
Quarter, less than an amount equal to (a) $1,000,000,000, plus
(b) an amount equal to 50% of aggregate of the cumulative Consolidated
Net Income (excluding the effect of any decrease in any Deferred Tax
Valuation Allowance) for each Fiscal Quarter contained in the fiscal
period commencing on June 1, 2008 and ending as of the last day of
such Fiscal Quarter (provided that there shall be no reduction
hereunder in the event of a consolidated net loss in any such Fiscal
Quarter), plus (c) an amount equal to 50% of the cumulative
net proceeds received by Borrower from the issuance of its capital
stock subsequent to May 31, 2008, minus (d) the cumulative net
amount of all Deferred Tax Valuation Allowances (not to exceed
$721,753,000 in the aggregate), as of the date of determination.

	9.	 	Amendment to Section 6.10 — Consolidated Leverage Ratio. Section 6.10 of the Loan
Agreement shall be amended to read in its entirety as follows:

	 	6.10	 	Consolidated Leverage Ratio.
Permit the Consolidated Leverage Ratio to be, at the end of any
Fiscal Quarter, greater than:

	 	(a)	 	2.00 to 1.00 (if the Consolidated
Interest Coverage Ratio at the end of that Fiscal Quarter is
greater than or equal to 1.50 to 1.00);
	 
	 	(b)	 	1.25 to 1.00 (if the Consolidated
Interest Coverage Ratio at the end of that Fiscal Quarter is
less than 1.50 to 1.00 but greater than or equal to 1.00 to
1.00); or
	 
	 	(c)	 	1.00 to 1.00 (if the Consolidated
Interest Coverage Ratio at the end of that Fiscal Quarter is
less than 1.00 to 1.00).

	10.	 	Amendment to Section 6.11 — Consolidated Interest Coverage Ratio. Section 6.11 of
the Loan Agreement shall be amended to read in its entirety as follows:

	 	6.11	 	Consolidated Interest Coverage Ratio.
Permit the Consolidated Interest Coverage Ratio to be, at the end of
any Fiscal Quarter, less than 1.00 to 1.00.

-8-

 

	 	 	 	Notwithstanding any other provisions of this Agreement, any failure
to comply with this Section 6.11 shall not constitute a Default or
Event of Default, if, concurrently with the delivery of financial
statements pursuant to Section 7.1(a) and (b) and the related
Compliance Certificate pursuant to Section 7.2, Borrower establishes
an interest-bearing interest reserve account with Administrative
Agent (the “Reserve Account”) and maintains (from the
Business Day immediately following the delivery of such Compliance
Certificate for so long as required by this Section 6.11) in the
Reserve Account immediately available funds in an amount (the
“Minimum Reserve Amount”) at least equal to the Consolidated
Interest Expense for the then most recently completed Fiscal Quarter,
as set forth on the Compliance Certificate for such Fiscal Quarter or
Fiscal Year delivered pursuant to Section 7.2, multiplied by
the Applicable Reserve Account Multiplier.
	 
	 	 	 	If a Compliance Certificate is not delivered on or prior to the date
required by Section 7.2, immediately available funds in an amount
equal to 10% of the then-effective Minimum Reserve Amount (if any)
shall be additionally deposited into the Reserve Account within 3
Business Days immediately following the date upon which such
Compliance Certificate was due under Section 7.2. If, as a result of
any restatement of or other adjustment to the financial statements of
Borrower or a calculation error, Borrower or Administrative Agent
determines that (i) the Consolidated Interest Expense as calculated
by Borrower as of any applicable date has changed and (ii) a
recalculation of the Consolidated Interest Expense results in an
increase in the Minimum Reserve Amount, immediately available funds
in an amount equal to such increase shall be additionally deposited
into the Reserve Account within 3 Business Days immediately following
the date of such determination by Borrower or Administrative Agent.
	 
	 	 	 	Borrower may withdraw all amounts deposited in the Reserve Account on
the first Business Day following receipt by the Administrative Agent
of a Compliance Certificate delivered pursuant to Section 7.2 with
respect to a Fiscal Quarter showing that the Consolidated Interest
Coverage Ratio for such Fiscal Quarter is greater than or equal to
1.00 to 1.00, provided that no Default or Event of Default
has then occurred and is continuing. Borrower may withdraw any
amounts from the Reserve Account that exceed the Minimum Reserve
Amount for the then most recently completed Fiscal Quarter, as shown
in the Compliance Certificate for such Fiscal Quarter or Fiscal Year
delivered pursuant to Section 7.2, provided that no Default
or Event of Default has then occurred and is continuing (and Borrower
delivers a certificate of a Senior Officer to this effect if such
withdrawal is made on a day other than the first Business Day
following receipt by the Administrative Agent of the applicable
Compliance Certificate).

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	11.	 	Amendment to Section 6.12. Section 6.12 of the Loan Agreement shall be amended to
read in its entirety as follows:

	 	6.12	 	Distributions.

	 	(a)	 	Make any Distribution if a
Default or an Event of Default then exists or if an Event of
Default or Default would result therefrom; or
	 
	 	(b)	 	At all times the Consolidated
Interest Coverage Ratio is less than 2:00 to 1:00, (i) retire,
redeem, purchase or otherwise acquire for value (other
than for capital stock of the same type of the Borrower
or any of its Consolidated Subsidiaries) any shares of capital
stock or any warrant or right to acquire shares of capital stock
or any other equity security issued by the Borrower or any of
its Consolidated Subsidiaries; or (ii) make any Investment in
any holder of 5% or more of the capital stock (or other equity
securities) of the Borrower or any of its Consolidated
Subsidiaries, if a purpose of such Investment is to avoid the
restrictions set forth in subclause (i) above; provided,
however, that the restrictions set forth in this
Section 6.12(b) shall not apply if all of the following
conditions are met:

	 	(1)	 	Unrestricted Cash
(calculated on a pro forma basis after giving effect to
such retirement, redemption, purchase, acquisition or
Investment) equals or exceeds the Commitment;
	 
	 	(2)	 	Total
Outstandings (excluding the aggregate undrawn face
amount of outstanding Letters of Credit) are zero; and
	 
	 	(3)	 	no Default or
Event of Default then exists or would result therefrom.

	 	 	 	Notwithstanding the other provisions of this Section 6.12,
Section 6.12 does not prohibit:

	 	(A)	 	repurchases or
exchanges of capital stock, warrants or rights to
acquire shares of capital stock or other equity
securities from or with employees of Borrower and its
Subsidiaries in connection with Borrower’s equity
incentive plans or other employee benefit plans or
agreements for tax withholding obligations, or in
connection with cashless exercises of options, warrants
or other rights to acquire or in lieu of fractional shares; provided that the total cash and
non-cash consideration paid by or on behalf of the
Borrower and its Subsidiaries for all such repurchases
and exchanges from or with
employees does not exceed in the aggregate $5,000,000
in any Fiscal Year;

-10-

 

	 	(B)	 	the purchase of
call options or call spreads by Borrower or its
Subsidiaries in connection with any convertible
securities offering of Subordinated Obligations by
Borrower, together with the repurchase of shares of
capital stock or settlement for cash (in whole or in
part) as may be required by the terms of such options or
spreads; or
	 
	 	(C)	 	a Distribution
made to Borrower or to a Guarantor Subsidiary.

	12.	 	Amendment to Section 6.16. Section 6.16 of the Loan Agreement shall be amended to
read in its entirety as follows:

	 	6.16	 	Investment in Subsidiaries and Joint
Ventures.
Permit, as of the last day of any Fiscal Quarter, Borrower’s equity
interest, computed in accordance with Generally Accepted Accounting
Principles consistently applied, in all Subsidiaries of Borrower
(other than Guarantor Subsidiaries), Financial
Subsidiaries, Foreign Subsidiaries, all Joint Ventures and all other
entities with financial statements not consolidated with those of
Borrower under Generally Accepted Accounting Principles consistently
applied to exceed 35% of the result of (a) Consolidated Tangible Net
Worth plus (b) the cumulative net amount of all Deferred Tax
Valuation Allowances (not to exceed $721,753,000 in the aggregate),
each as of such date determined in accordance with Generally Accepted
Accounting Principles consistently applied.

	13.	 	Amendment to Section 9.1(g). Section 9.1(g) of the Loan Agreement shall be amended
to read in its entirety as follows:

	 	(g)	 	Borrower or any of its Significant Subsidiaries
which is also a Consolidated Subsidiary (i) fails to pay the principal,
or any principal installment, of any present or future Indebtedness
(other than Non-Recourse Indebtedness), or any guaranty
of present or future Indebtedness (other than
Non-Recourse Indebtedness) on its part to be paid, when due (or within
any stated grace period), whether at the stated maturity, upon
acceleration, by reason of required prepayment or otherwise in excess
of $50,000,000 in the aggregate or (ii) fails to perform or observe any
other material term, covenant, or agreement on its part to be performed
or observed, or suffers to exist any condition, in connection with any
present or future Indebtedness (other than Non-Recourse
Indebtedness), or any guaranty of present or future Indebtedness
(other than Non-Recourse Indebtedness), in excess of
$50,000,000 in the aggregate, if as a result of such failure or such
condition any holder or holders thereof (or an agent or trustee on its
or their behalf) has the right to declare it due before the date on
which it otherwise would become due or has the right to cause a
demand such that such Indebtedness be repurchased, prepaid, defeased
or redeemed; or

-11-

 

	14.	 	Consent Fee. Borrower agrees to pay to the Administrative Agent, for the account
of each “Consenting Bank” (as defined in Annex IV hereto), a fee equal to the
“Consent Percentage” (as defined in Annex IV hereto) of the Pro Rata Share of the
Commitment (as modified by the amendment in Section 2 above) held by such Consenting Bank
(the “Consent Fee”). The Consent Fee shall be payable to the Consenting Banks only if
Consenting Banks constitute Required Banks and shall be paid by Borrower promptly after
receipt of consents from Required Banks and after the “Consent Deadline” (as defined in
Annex IV hereto). Upon payment by Borrower, the Consent Fee received by each
Consenting Bank shall be fully earned and nonrefundable.

	15.	 	Conditions Precedent. The effectiveness of this Fifth Amendment is conditioned
upon the receipt by the Administrative Agent of:

	 	(a)	 	this Fifth Amendment, duly executed and delivered by Borrower;
	 
	 	(b)	 	the attached Consent of Guarantors, duly executed and delivered by each
Guarantor Subsidiary;
	 
	 	(c)	 	written consents to the execution, delivery and performance hereof from the
Required Banks under the Loan Agreement;
	 
	 	(d)	 	the Consent Fee from the Borrower in the amount payable to each Consenting
Bank; and
	 
	 	(e)	 	such other fees and expenses in such amounts and at such times as heretofore
set forth in a letter agreement between Borrower, the Administrative Agent and BAS and
as otherwise required under the Loan Agreement.

	16.	 	Representations and Warranties. Borrower represents and warrants to the
Administrative Agent and the Banks that:

	 	(a)	 	No Default or Event of Default has occurred and remains continuing and that
each of the representations and warranties of Borrower (other than the
representations and warranties contained in Sections 4.4(a),
4.6, 4.9, 4.18 and 4.19 of the Loan Agreement)
contained in Article IV of the Loan Agreement (each as updated from time to
time in accordance with the terms of the Loan Agreement, and except that the financial
statements referred to in Section 4.7(a) of the Loan Agreement shall be deemed
to refer to the most recent financial statements delivered pursuant to
Section 7.1(a) of the Loan Agreement and the Borrowing Base Certificate
referred to in Section 4.7(b) of the Loan Agreement shall be deemed to refer to
the most recent Borrowing Base Certificate delivered pursuant to Section 2.8 of
the Loan Agreement) is true and correct in all material respects as of the date hereof
(other than those which relate by their terms solely to another date).
	 
	 	(b)	 	As of the date hereof, the assumptions upon which the projections delivered to
the Administrative Agent on August 4, 2008 are based are believed by management of
Borrower to be reasonable and consistent with other assumptions and facts known to
Borrower as of the date hereof. Nothing in this Section 16(b) shall be construed as a
representation or warranty as of any date other than the date hereof or that any of
such projections will in fact be achieved by Borrower.
	 
	 	(c)	 	As of the date hereof, without expanding the scope of the representations and
warranties set forth in Section 16(b), the information (or the most recent version
thereof in the case

-12-

 

	 		 	of updated information) provided by Borrower to the Banks in
connection with this Fifth Amendment, taken as a whole, has not contained any untrue
statement of a material fact and has not omitted a material fact necessary to make the
statements contained therein, taken as a whole, not misleading under the totality of
the circumstances existing at the date such information was provided and in the context
in which it was provided.

	17.	 	RELEASE. BORROWER AND EACH GUARANTOR SUBSIDIARY HEREBY ACKNOWLEDGE THAT THE
OBLIGATIONS UNDER THE LOAN AGREEMENT AND EACH LOAN DOCUMENT EXECUTED IN CONNECTION THEREWITH
ARE ABSOLUTE AND UNCONDITIONAL WITHOUT ANY RIGHT OF RESCISSION, SETOFF, COUNTERCLAIM,
DEFENSE, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN
BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE OBLIGATIONS
UNDER THE LOAN AGREEMENT AND EACH LOAN DOCUMENT EXECUTED IN CONNECTION THEREWITH OR TO SEEK
AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM ANY PARTY TO THE LOAN AGREEMENT OR
OTHER LOAN DOCUMENTS. BORROWER AND EACH GUARANTOR SUBSIDIARY HEREBY VOLUNTARILY AND
KNOWINGLY RELEASE AND FOREVER DISCHARGE EACH AGENT PARTY, EACH AGENT-RELATED PERSON, EACH
ISSUING BANK, EACH BANK AND ITS PREDECESSORS, AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES,
COUNSEL, AGENTS, ATTORNEYS-IN-FACT, SUCCESSORS, AND ASSIGNS (COLLECTIVELY, THE “RELEASED
PARTIES”), FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS,
EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED,
SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING
IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS FIFTH AMENDMENT IS EXECUTED, WHICH BORROWER OR
ANY GUARANTOR SUBSIDIARY MAY NOW OR HEREAFTER HAVE AGAINST THE RELEASED PARTIES, IF ANY, AND
IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR
REGULATIONS, OR OTHERWISE, WHICH ARISE FROM ANY OF THE “LOANS”, “LETTERS OF CREDIT” OR
OTHERWISE IN CONNECTION WITH THE LOAN AGREEMENT OR ANY OTHER LOAN DOCUMENT INCLUDING, WITHOUT
LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING
INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND
REMEDIES UNDER THE LOAN AGREEMENT OR OTHER LOAN DOCUMENTS, AND OUT OF OR IN CONNECTION WITH
OR BY REASON OF THE LOAN AGREEMENT AND EACH LOAN DOCUMENT EXECUTED IN CONNECTION THEREWITH,
INCLUDING NEGOTIATION FOR AND EXECUTION OF THIS FIFTH AMENDMENT.

	18.	 	Waiver of California Civil Code Section 1542. Borrower and each Guarantor
Subsidiary hereby expressly waive the provisions of Section 1542 of the Civil Code of
California, which provides as follows:

	 	 	 	A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

-13-

 

	19.	 	Third Amendment. Sections 2 and 7 of the Third Amendment Agreement to the Loan
Agreement, dated as of August 17, 2007, are of no further force and effect.

	20.	 	Counterparts. This Fifth Amendment may be executed in counterparts in accordance
with Section 11.7 of the Loan Agreement.

	21.	 	Expenses. The Borrower confirms its obligation, pursuant to Section 11.3 of the
Loan Agreement, to pay the reasonable actual out-of-pocket costs and expenses of the
Administrative Agent and BAS incurred in connection with this Fifth Amendment.

	22.	 	Confirmation. In all other respects, the terms of the Loan Agreement and the other
Loan Documents are hereby confirmed.

[signatures continued on following page]

-14-

 

IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to be duly executed as of
the date first written above.

	 	 	 	 	 
	 	KB HOME, a Delaware corporation

 	 
	 	By:  	/s/ Kelly Masuda
 	 
	 	Its:   Senior Vice President, Treasurer 	 
	 	 	 	 
	 
	 	BANK OF AMERICA, N.A., as Administrative Agent and as a Bank
 
	 	By:  	/s/ Theodore M. Becchetti
 	 
	 	Its:   Vice President

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