Document:

Exhibit 10.16

 

FOURTH AMENDMENT 

TO THE 

ENTEGRA BANK

AMENDED AND RESTATED LONG TERM CAPITAL APPRECIATION
PLAN

 

THIS FOURTH AMENDMENT is
adopted this 22nd day of February, 2018, effective as of February 23, 2018, by Entegra Bank (formerly “Macon Bank,
Inc.”), a North Carolina commercial bank located in Franklin, North Carolina (the “Bank”).

 

WHEREAS, the Bank previously
adopted the Macon Bank Amended and Restated Long Term Capital Appreciation Plan on December 15, 2004, effective January 1, 2005,
and subsequently adopted the First Amendment thereto on December 10, 2008, effective January 1, 2005, the Second Amendment thereto
on March 16, 2011, effective February 28, 2011, and the Third Amendment thereto on the 26th day of February, 2015, effective
April 1, 2015 (as amended, the “Plan”); and

 

WHEREAS, the Board of Directors
of the Bank has deemed it advisable to amend the Plan to clarify certain administrative provisions concerning participant direction
of investment in the common stock of Entegra Financial Corporation.

 

NOW, THEREFORE the Plan
is hereby amended as follows, effective February 23, 2018 (the “Amendment Effective Date”):

 

Name of the Plan

 

The Plan shall hereafter
be referred to as the Entegra Bank Amended and Restated Long Term Capital Appreciation Plan.

 

Article II of the
Plan is amended by deleting Section 2.3 in its entirety and replacing it with a new Section 2.3, to read as follows:

 

2.3       Investment
Return on Deferrals.  During the Plan Year, the Bank shall credit (or charge) the Participant’s Account that
is attributable to Deferrals and Initial Credits under Section 2.2 with an investment return equal to actual Earnings on his Account
in accordance with Section 2.3a below. Each Participant who (a) has not had a Termination from Service as of the Amendment Effective
Date, or (b) makes a valid election under Section 2.6 hereof, shall have the right to direct the investment of the Participant’s
Account. However, the Bank may specify any limitations on the Participant’s right of vestment direction. The Participant
investment direction right is limited strictly to investment direction and the Participant will not be entitled to the distribution
of any Account asset except as the Plan otherwise permits in Section 3.9 hereof or otherwise. Except as otherwise provide in the
Plan or Trust, all Plan assets, including all incidents of ownership thereto, at all times will be the sole property of the Bank.

 

    	 

     

    

Article II of the
Plan is amended by adding a new Section 2.3a(e) immediately following Section 2.3a(d), such Section 2.3a(e) to read as follows:

 

2.3a       Directed
Investment Accounts.

 

(e)       Investment
in Common Stock of Entegra Financial Corporation. Notwithstanding any contrary provision in the Plan, a Participant’s
election to invest all or any portion of his Directed Account in the common stock of Entegra Financial Corporation shall be irrevocable.

 

Article III of the
Plan is hereby amended by adding a new Section 3.9 immediately following Section 3.8, such Section 3.9 to read as follows:

 

3.9       Common
Stock of Entegra Financial Corporation. Notwithstanding any Plan provision to the contrary, if a Participant has elected to
have all or any portion of his Directed Account invested in the common stock of Entegra Financial Corporation, then upon distribution
of all or a portion of such Directed Account to the Participant, the portion of such account that is so directed will be settled
by a fixed number of shares.

 

IN WITNESS WHEREOF,
the parties hereto have hereunto set their hands the day and year first above written.

 

	 	ENTEGRA BANK
	 	 
	 	By:	 
	 	Title:	President & CEO

 

 

Witnessed by:Exhibit

Exhibit 10.11

TRA Waiver and Assignment Agreement
This TRA waiver and assignment agreement (this "Agreement"), dated as of September 15, 2017, is hereby entered into by and among Surgery Partners, Inc., a Delaware corporation (the "Corporation"), and [•] ("Employee"). Reference is hereby made to that certain Income Tax Receivable Agreement, by and among the Corporation, the Stockholders Representative, Employee and the other parties referred to therein, dated as of September 30, 2015 and amended by that certain Amendment No. 1 to Income Tax Receivable Agreement dated as of May 9, 2017 (as amended or otherwise modified, the "Tax Receivable Agreement").  All capitalized terms used and not otherwise defined herein shall have the meanings ascribed thereto in the Tax Receivable Agreement.  In consideration of the respective covenants and agreements set forth herein, and intending to be legally bound hereby, the parties hereto agree as follows:
1.    The Corporation hereby agrees to pay to Employee the amount set forth opposite Employee's name below on or before the date which is ten (10) days after the date of this Agreement, by wire transfer of immediately available funds to such account or accounts as may be designated in writing by Employee no later than two (2) Business Days prior to such date:
	
		
	Employee
	Amount

	[•]
	[•]

2.    In consideration for the payments payable by the Corporation to Employee pursuant to Section 1 of this Agreement, Employee hereby agrees to assign and transfer to the Corporation, and otherwise hereby waives, one-hundred percent (100%) of Employee's right, title and interest in and to any ITR Payment payable pursuant to the Tax Receivable Agreement.  The Corporation hereby accepts such assignment and transfer and hereby agrees to hold such right, title and interest in accordance with and subject to the terms of the Tax Receivable Agreement and accordingly to be bound by the terms thereof to the extent applicable to such right, title and interest.  The Corporation hereby acknowledges that any and all requirements under Section 7.06(a) of the Tax Receivable Agreement with respect to such assignment and transfer are hereby satisfied.  For the avoidance of doubt, pursuant to and in accordance with this Section 2, with respect to each ITR Payment payable after the date of this Agreement, Employee will be entitled to receive zero percent (0%) of Employee’s share of such ITR Payment and the Corporation shall be entitled to receive or retain one-hundred percent (100%) of Employee's share of such ITR Payment.
3.    The Corporation shall be entitled to deduct and withhold from any payment payable pursuant to this Agreement such amounts as the Corporation is required to deduct and withhold with respect to the making of such payment under the Code, or any applicable provision of state or local or foreign Tax law.  To the extent that amounts are so withheld and paid over to the appropriate Taxing Authority by the Corporation, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to Employee.
4.    The amount of all or any portion of any payment payable by the Corporation to Employee pursuant to Section 1 of this Agreement not made to Employee when due under the terms of this Agreement shall be payable together with any interest thereon, computed at the Default Rate and commencing from the date on which such payment was due and payable.  Notwithstanding anything in this Agreement to the contrary, it shall not be a breach of this Agreement if the Corporation fails to make or cause to be made any payment payable by the Corporation to Employee pursuant to Section 1 of this Agreement when due to the extent that the Corporation determines in good faith that the Corporation has insufficient funds (taking into account funds of its wholly-owned Subsidiaries that are permitted to be distributed or loaned to the Corporation pursuant to the terms of any applicable credit agreements or other documents evidencing indebtedness (each as reasonably interpreted by the Corporation), but not taking into account funds of its 

     1

wholly-owned Subsidiaries that are not permitted to be distributed or loaned pursuant to the terms of such agreements or documents and not taking into account funds reasonably reserved for reasonably expected liabilities or expenses) to make such payment; provided that the interest provisions of the previous sentence shall apply to such late payment (unless the Corporation determines in good faith that (x) the Corporation does not have sufficient cash to make such payment as a result of limitations imposed by credit agreements or any other documents evidencing indebtedness to which the Corporation or its wholly-owned Subsidiaries is a party, guarantor or otherwise an obligor as of the date of this Agreement (the “Initial Debt Documents”) or any other document evidencing indebtedness to which the Corporation or its wholly-owned Subsidiaries becomes a party, guarantor or otherwise an obligor thereafter to the extent the terms of such other documents are not materially more restrictive in respect of the Corporation’s ability to receive from its direct or indirect Subsidiaries funds sufficient to make such payments compared to the terms of the Initial Debt Documents, as determined by the Corporation in good faith (any such document, collectively with the Initial Debt Documents, the “Permitted Debt Documents”), or (y) such payments could (I) be set aside as fraudulent transfers or conveyances or similar actions under fraudulent transfer laws or (II) could cause the Corporation and/or its wholly-owned Subsidiaries to be undercapitalized, in which case the interest provisions of the previous sentence shall apply, but the Default Rate shall be replaced by the Agreed Rate).  The Corporation represents to Employee that it has sufficient funds to make the payments pursuant to Section 1, there are no limitations pursuant to any agreements, including any credit agreements or other documents evidencing indebtedness, which would prevent the Corporation from making such payments, and the making of the payments under Section 1 will not result in it and/or its wholly-owned Subsidiaries being undercapitalized or result in the payment potentially being set aside as a fraudulent transfer or conveyance under fraudulent transfer laws.  
5.    Sections 1.02, 7.02, 7.03, 7.04 and 7.05 of the Tax Receivable Agreement are hereby incorporated by reference into this Agreement and shall apply as if fully set forth herein mutatis mutandis.  Employee may not assign any of Employee’s rights and obligations under this Agreement without the prior written consent of the Corporation.  No provision of this Agreement may be amended unless such amendment is approved in writing by the Corporation and Employee.  No provision of this Agreement may be waived unless such waiver is in writing and signed by the party against whom the waiver is to be effective.  All of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto and their respective successors, permitted assigns, heirs, executors, administrators and legal representatives.
6.    All notices, requests, consents and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by courier service, by fax, by electronic mail (delivery receipt requested) or by certified or registered mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be as specified in a notice given in accordance with this Section 6):
If to the Corporation, to: 
Surgery Partners, Inc. 
40 Burton Hills Boulevard 
Suite 500 
Nashville, Tennessee 37215 
Fax: (615) 234-5998 
Attention: General Counsel 
Email: jbaldock@surgerypartners.com
with a copy (which shall not constitute notice) to: 
Ropes & Gray LLP 
1211 Avenue of the Americas 
New York, NY 10036 
Attention: Carl Marcellino 

     2

Facsimile: (646) 728-1523 
Email: Carl.Marcellino@ropesgray.com 
If to Employee, to the address set forth under Employee’s name on the signature page hereto.

7.    Any and all disputes which cannot be settled amicably between the Corporation and any Employee, including any ancillary claims of any party, arising out of, relating to or in connection with the validity, negotiation, execution, interpretation, performance or non-performance of this Agreement (including the validity, scope and enforceability of this arbitration provision) shall be finally settled by arbitration conducted by a single arbitrator in accordance with the then existing Rules of Arbitration of the International Chamber of Commerce. The place of arbitration shall be New York, New York. The parties shall jointly select a single arbitrator who shall have the authority to hold hearings and to render a decision in accordance with the then existing Rules of Arbitration of the International Chamber of Commerce. If the Corporation and Employee fail to agree on the selection of an arbitrator within thirty (30) calendar days of the receipt of the request for arbitration, the arbitrator shall be selected by the International Chamber of Commerce. The arbitrator shall be a lawyer. The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. Section 1, et seq., and judgment on the award may be entered by any court having jurisdiction thereof. Performance under this Agreement shall continue if reasonably possible during any arbitration proceedings.  Notwithstanding the foregoing, either the Corporation or Employee may bring an action or special proceeding in any court of competent jurisdiction for the purpose of compelling a party to arbitrate, seeking temporary or preliminary relief in aid of an arbitration hereunder, and/or enforcing an arbitration award and, for such purposes, Section 7.07(c) of the Tax Receivable Agreement is hereby incorporated by reference into this Agreement and shall apply to any such action or proceeding as if fully set forth herein mutatis mutandis.
[Signature pages follow]

     3

IN WITNESS WHEREOF, the Corporation and Employee have duly executed this Agreement as of the date first written above.
		
	Corporation:
	SURGERY PARTNERS, INC.

    

By: ______________________________
Name: 
Title: 

		
	Employee:
	__________________________________

Name:  
                    
Address:
__________________________________
__________________________________
__________________________________
__________________________________

[Signature Page to TRA Waiver and Assignment Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00281-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00281-of-00352.parquet"}]]