Document:

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                                                                    Exhibit 10.1

              AMENDMENT NO. 2 TO THE SHAREHOLDERS RIGHTS AGREEMENT

THIS AMENDMENT NO. 2 TO THE SHAREHOLDERS RIGHTS AGREEMENT, dated as of July 1,
2002 (this "Amendment"), between Shelbourne Properties III, Inc. (the "Company")
and American Stock Transfer & Trust Company, as rights agent (the "Rights
Agent"), at the Company's direction. Capitalized terms used herein and not
otherwise defined have the meanings ascribed to such terms in the Rights
Agreement (as defined below).

     WHEREAS, the Company and the Rights Agent entered into the Shareholder
Rights Agreement, dated February 8, 2001, as amended by Amendment of Rights
Agreement, dated as of February 14, 2002 (the "Rights Agreement"), setting forth
the terms of the Rights;

     WHEREAS, the Company and the Rights Agent may, from time to time,
supplement or amend the Rights Agreement pursuant to the provisions of Section
27 of the Rights Agreement;

     WHEREAS, the Board of Directors of the Company (the "Board of Directors"),
on July 1, 2002, resolved that it is advisable, fair and in the best interests
of the Company and the stockholders for HX Investors, L.P. and its affiliates
("HX Investors") to acquire up to 236,631 issued and outstanding shares of
common stock of the Company in connection with the Settlement Agreement (as
defined below) and the Stock Purchase Agreement (as defined below);

     WHEREAS, the Board of Directors further resolved to approve this Amendment
which provides, among other things, that (1) HX Investors, to the extent that HX
Investors shall not be the Beneficial Owner of more than 42% of the Common
Shares then outstanding, is exempt from the definition of Acquiring Person, (2)
the Settlement Agreement, the Stock Purchase Agreement and the transactions
contemplated thereby shall not constitute a Distribution Date, an event
described in Section 11(a)(ii) of the Rights Agreement, an event described in
Section 13 of the Rights Agreement, a Stock Acquisition Date or a Triggering
Event and (3) no Rights shall be exercisable pursuant to the Rights Agreement as
a result of the transactions contemplated by the Stock Purchase Agreement;

     NOW THEREFORE, in consideration of the premises and mutual agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Rights Agent
hereby agree as follows:

     SECTION 1. Amendment to Rights Agreement. The Rights Agreement is hereby
amended as follows:

     (a) The definition of "Acquiring Person" in Section 1 is amended by
inserting the following sentence at the end of such definition:

     "Notwithstanding anything in this Agreement to the contrary, none of HX
     Investors, L.P., a New York limited partnership ("HX Investors"), its
     Affiliates or its Associates, either individually or as a group, shall
     become an Acquiring Person by reason of the approval, execution or delivery
     of the Settlement and Mutual Release, dated July 1, 2002, between HX
     Investors and certain additional plaintiffs, as plaintiffs, and the
     Company, Shelbourne Properties I, Inc. and

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     Shelbourne Properties II, Inc., as defendants (the "Settlement Agreement"),
     the Stock Purchase Agreement, dated July 1, 2002, by and among HX
     Investors, Exeter Capital Corporation and the Company (the "Stock Purchase
     Agreement"), or the consummation of the transactions contemplated thereby
     or any announcement of the same."

     (b) A new Section 35 is added to read in its entirety as follows:

          "SECTION 35. Purchase of Stock by HX Investors. Notwithstanding
     anything in this Agreement to the contrary, none of HX Investors, its
     Affiliates or its Associates, either individually or as a group, to the
     extent they shall not be the Beneficial Owner of more than 42% of the
     Common Shares then outstanding, shall be considered an Acquiring Person,
     and no event described in Section 11(a)(ii), no event described in Section
     13, no Stock Acquisition Date and no Triggering Event shall occur and no
     Rights shall be exercisable pursuant to Section 7 or any other provision of
     this Agreement by reason of the approval, execution or delivery of the
     Settlement Agreement and the Stock Purchase Agreement, the consummation of
     the transactions contemplated thereby or announcement of the same."

     SECTION 2. Full Force and Effect. In all respects not inconsistent with the
terms and provisions of this Agreement, the Rights Agreement is hereby ratified
and confirmed. In executing and delivering this Amendment, the Rights Agent
shall be entitled to all of the privileges and immunities afforded to the Rights
Agent under the terms and conditions of the Rights Agreement.

     SECTION 3. Counterparts. This Amendment may be executed in two or more
counterparts and each such counterpart shall for all purposes be deemed to be an
original and all such counterparts shall together constitute but one and the
same instrument. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be as effective as delivery of a manually executed
counterpart of this Amendment.

     SECTION 3. Governing Law. This Amendment shall be deemed to be a contract
made under the laws of the State of Delaware and for all purposes shall be
governed by and construed in accordance with the laws of such state applicable
to contracts to be made and to be performed entirely within such state.

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to the
Rights Agreement to be duly executed as of the date first written above.

                                       SHELBOURNE PROPERTIES III, INC.

                                       By /s/ Donald Wallace Coons
                                          --------------------------------------
                                          Name:  Donald Wallace Coons
                                          Title: Director

                                       AMERICAN STOCK TRANSFER & TRUST COMPANY

                                       By /s/ Herbert J. Lemmer
                                          --------------------------------------
                                          Name:  Herbert J. Lemmer
                                          Title: Vice President

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         CERTIFICATION OF COMPLIANCE WITH SECTION 27 OF RIGHTS AGREEMENT
         ---------------------------------------------------------------

The undersigned officer of Shelbourne Properties III, Inc. (the "Company"),
being an appropriate officer of the Company and authorized to do so by
resolution of the board of directors of the Company, dated July 1, 2002, hereby
certifies to American Stock Transfer & Trust Company, as rights agent, that the
Amendment No. 2 to the Shareholder Rights Agreement is in compliance with the
terms of Section 27 of such agreement.

                                           SHELBOURNE PROPERTIES III, INC.

                                           By /s/ Donald Wallace Coons
                                              ----------------------------------
                                              Name:  Donald Wallace Coons
                                              Title: Director

     Acknowledged and Agreed:

     AMERICAN STOCK TRANSFER & TRUST COMPANY

     By /s/ Herbert J. Lemmer
        -------------------------------------
        Name:  Herbert J. Lemmer
        Title: Vice President

                                       8<PAGE>
                                                                  EXHIBIT 10.16

                FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

         THIS FOURTH AMENDMENT (this "Amendment"), made this _______ day of
June, 2002, is by and among U.S. Bank National Association (the "Bank") the
successor to Bank of America, N.A., the successor to NationsBank, N.A. ("Bank
of America"), Wilmington Surgery Center, L.P., a Tennessee limited partnership
(the "Borrower") and Symbion Ambulatory Resource Centres, Inc., a Tennessee
corporation and the successor to Ambulatory Resource Centres, Inc. (the
"Guarantor").

                                    RECITALS

         Bank of America has previously made a loan to the Borrower (the
"Wilmington Loan"), an Affiliate of Guarantor, pursuant to a Loan and Security
Agreement dated May 24, 1999 (as amended from time to time, the "Loan
Agreement"). Capitalized terms not otherwise defined in this Amendment shall
have the meaning provided in the Loan Agreement. The Loan Agreement was amended
pursuant to (i) an Amendment to Loan Agreements dated June 25, 1999 among Bank
of America, Borrower, Guarantor and ARC Kentucky, LLC, (ii) a Second Amendment
to Loan and Security Agreement dated April 12, 2000 among Bank of America,
Borrower and Guarantor and (iii) a Third Amendment to Loan and Security
Agreement dated March 29, 2001 among Bank of America, Borrower and Guarantor.
At the request of Borrower, Bank has acquired all of Bank of America's interest
in the indebtedness extended pursuant to the Loan Agreement, conditioned upon
the execution of this Amendment and compliance with the terms hereof. The
Wilmington Loan is secured by, among other things, a Guaranty and Suretyship
Agreement dated June 25, 1999 (the "Symbion Guaranty") pursuant to which
Symbion, Inc., a Tennessee corporation ("Symbion-Tennessee") guaranteed all
indebtedness owed to Bank of America by Borrower, ARC Kentucky, LLC and UniPhy
Healthcare, Inc. Symbion, Inc., a Delaware corporation ("Symbion"), intends to
succeed to all of the obligations of Symbion-Tennessee, including those
evidenced by the Symbion Guaranty. As a condition to the acquisition of the
Wilmington Loan by Bank, Bank of America released Symbion-Tennessee from
liability under the Symbion Guaranty solely with respect to any obligations of
Borrower and, concurrently with the execution of this Amendment and as a
condition to the acquisition by Bank of the Wilmington Loan, Symbion-Tennessee
is delivering to Bank a Guaranty and Suretyship in form and substance similar
to the Symbion Guaranty pursuant to which Symbion-Tennessee will guaranty the
indebtedness of Borrower.

         NOW, THEREFORE, the parties to this Amendment hereby agree as follows:

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Article I.        Amendment to Loan Agreement. The parties hereto amend the Loan
Agreement as follows:

         Section 1.1 The definition of "LOAN TERMINATION DATE" in the Loan
Agreement is hereby deleted in its entirety and replaced with the following:

                  `"LOAN TERMINATION DATE" means the earlier of (i) April 2,
         2003 or (ii) the financial closing of the credit facility
         substantially as described in the term sheet posted by Banc of America
         Securities LLC as of May 16, 2002 on IntraLinks.com.'

         Section 1.2 The following definitions are hereby added to the Loan
Agreement:

                  `"EBITDAR" means, for any Person and for any period of
         determination, the Net Income for such period plus (A) Interest
         Expense for such period deducted in the determination of Net Income,
         (B) federal and state taxes for such period deducted in the
         determination of Net Income, (C) depreciation deducted in the
         determination of Net Income, (D) amortization deducted in the
         determination of Net Income, (E) non-cash or non-recurring charges for
         such period deducted in the determination of Net Income, and (F)
         Rental Expense for such period deducted in the determination of Net
         Income, all as determined in accordance with generally accepted
         accounting principles consistently applied.

                  "FIXED CHARGE COVERAGE RATIO" means the ratio of (A) the sum
         of EBITDAR, minus maintenance Capital Expenditures, minus cash
         payments of federal and state taxes to (B) the sum of Interest
         Expense, plus Rental Expense, plus scheduled principal payments on
         Indebtedness, measured on a trailing four quarters basis.

                  "TWELVE MONTH PRO-FORMA EFFECT" means, in making any
         calculation to determine if Symbion is in compliance with Subparagraph
         6.15(g) of the Loan Agreement, that the calculation will be made
         assuming that (a) any Acquisition made during the twelve-month period
         ending on the date of determination (the "Reference Period"), and (b)
         any Indebtedness associated with (a) incurred during the Reference
         Period or to be incurred as of the date of determination, were made or
         incurred on the first day of the Reference Period. Any funds to be
         used in consummating an Acquisition will be assumed to have been used
         for that purpose as of the first day of the Reference Period. If
         EBITDA for the Reference Period associated with the assets acquired or
         to be acquired in any Permitted Acquisition is greater than

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         $0, such EBITDA will be included in the calculation of EBITDA, and any
         Indebtedness to be incurred in connection with the consummation of any
         Acquisition will be assumed to have been incurred on the first day of
         the Reference Period. Interest Expense with respect to such
         Indebtedness assumed to have been incurred on the first day of the
         Reference Period which bears interest at a floating rate shall be
         calculated at the current rate under the agreement governing such
         Indebtedness. Any Interest Expense incurred during the Reference
         Period which was or is to be refinanced with the proceeds of
         Indebtedness assumed to have been incurred as of the first day of the
         Reference Period will be excluded from the calculation for which a
         Pro-Forma Effect is being given.'

         Section 1.3 Section 2.2(a) of the Loan Agreement is hereby deleted in
its entirety and replaced with the following:

                  "(a) Interest shall be charged and paid on the Loan from the
         date of the initial advance until the Loan is paid at a rate equal to
         the LIBO Rate plus three hundred fifty basis points (3.5%), to be
         adjusted at the beginning of each Interest Period."

         Section 1.4 The following is hereby added to the Loan Agreement as
Section 6.15(g):

                  "(g) At the end of each Quarterly Period, the Fixed Charge
         Coverage Ratio of Symbion, calculated on a consolidated basis and
         giving Twelve-Month Pro-Forma Effect to any Acquisition made and any
         Funded Debt incurred in connection therewith, shall be greater than
         1.25 to 1.00."

         Article II . General.

         Section 2.1 Loan Agreement. Except as amended hereby, the provisions
of the Loan Agreement shall remain in full force and effect. References in the
Loan Agreement and the other Loan Documents shall be references to the Loan
Agreement as amended by this Amendment.

         Section 2.2 Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of Tennessee without
reference to its choice of law rules.

         Section 2.3 Execution in Counterparts. This Amendment may be executed
in one or more counterparts, each of which shall be considered an original
instrument, but all of which shall be considered one and the same agreement,
and

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shall become binding when one or more counterparts have been signed by each of
the parties and delivered to each of the parties.

         Section 2.4 Representations. Borrower hereby makes the following
representations and warranties:

                  (a) as of the date hereof, Borrower has no defense against
         payment of any or all of the Obligations;

                  (b) as of the date hereof, no Event of Default or Unmatured
         Default has occurred or is continuing (after giving effect to this
         Amendment).

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

BANK:                                      BORROWER:

U. S. BANK NATIONAL ASSOCIATION            WILMINGTON SURGERY
CENTER, L.P.,                          a Tennessee limited partnership

                                       By: Ambulatory Resource Centres of
                                           Wilmington, Inc., its General
                                           Partner

BY:
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     BY:
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TITLE:
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     TITLE:
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     BY:
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     TITLE:
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                                       GUARANTOR:

                                       SYMBION AMBULATORY
                                       RESOURCE CENTRES, INC.

BY:
   ----------------------------------

TITLE:
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BY:
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TITLE:
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SYMBION:

The undersigned guarantor of the indebtedness extended pursuant to the Loan
Agreement hereby acknowledges the foregoing amendment.

SYMBION, INC.

BY:
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TITLE:
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