SEC Contract Filing

Filing Date: 2017-05-11

Document Content:
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<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>d368189dex103.htm
<DESCRIPTION>EX-10.3
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<TITLE>EX-10.3</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.3 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AMENDMENT NO. 1 TO </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>INCOME TAX RECEIVABLE AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This AMENDMENT NO. 1 TO INCOME TAX RECEIVABLE AGREEMENT (this &#147;<U>Amendment</U>&#148;), dated as of May 9, 2017, is hereby entered into
by and between Surgery Partners, Inc., a Delaware corporation (the &#147;<U>Corporation</U>&#148;), and H.I.G. Surgery Centers LLC, a Delaware limited liability company (the &#147;<U>Stockholders Representative</U>,&#148; in its capacity as such).
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, reference is hereby made to that certain Income Tax Receivable Agreement, dated as of September&nbsp;30, 2015, by and among the
Corporation, the Stockholders Representative and the other parties referred to therein (as amended or otherwise modified, the &#147;<U>Agreement</U>&#148;), and all capitalized terms used and not otherwise defined herein shall have the meanings
ascribed thereto in the Agreement; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Corporation and the Stockholders Representative desire to hereby amend the Agreement in
accordance with Section 7.06(c) of the Agreement; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, concurrently with the execution and delivery of this Amendment, the
Corporation and BCPE Seminole Holdings, LP, a Delaware limited partnership (the &#147;<U>Investor</U>&#148;) have entered into that certain Securities Purchase Agreement (the &#147;<U>Preferred Purchase Agreement</U>&#148;), dated as of the date
hereof, pursuant to which the Corporation has agreed to sell to the Investor and the Investor has agreed to purchase from the Corporation, shares of Corporation&#146;s 10.00% Series A Convertible Perpetual Participating Preferred Stock, par value
$0.01 per share, subject to the terms and conditions set forth therein; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, concurrently with the execution and delivery of this
Amendment, the Corporation, the Investor and H.I.G. Surgery Centers, LLC and H.I.G. Bayside Debt&nbsp;&amp; LBO Fund II L.P (collectively, &#147;<U>HIG</U>&#148;) have entered into that certain Stock Purchase Agreement (the &#147;<U>HIG Purchase
Agreement</U>&#148;), dated as of the date hereof, pursuant to which HIG has agreed to sell to Investor and Investor has agreed to purchase from HIG, all Common Stock (as defined in the Purchase Agreement) owned by HIG, subject to the terms and
conditions therein; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, concurrently with the execution and delivery of this Amendment, the Corporation, Merger Sub (as defined in
the NSH Merger Agreement (as defined below)), a Delaware corporation and a wholly owned subsidiary of the Corporation, NSH Holdco, Inc., a Delaware corporation (&#147;<U>NSH</U>&#148;), and IPC / NSH, L.P., a Delaware limited partnership, solely in
its capacity as the sellers&#146; representative, have entered into that certain Agreement and Plan of Merger (the &#147;<U>NSH Merger Agreement</U>&#148; and together with this Amendment, the HIG Purchase Agreement, the Preferred Purchase
Agreement, and any other agreement, disclosure letter, certificate or other document to be entered into or delivered pursuant to the terms hereof or in connection herewith or therewith, the &#147;<U>Transaction Documents</U>&#148;), dated as of the
date hereof, pursuant to which the Corporation has agreed to acquire all of the outstanding equity of NSH (the &#147;<U>NSH Acquisition</U>&#148;); and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, this Amendment is a condition to the willingness of HIG, the Corporation, and the Investor to enter into the Transaction Documents to
which they are a party. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements set
forth herein, and intending to be legally bound hereby, the parties hereto agree as follows: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments</U>.
As of the Effective Time (as defined below), the Agreement is hereby amended as follows: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;The
Agreement is hereby amended by replacing all references to &#147;Tax Benefit Payment&#148; therein with &#147;Settlement Payment&#148;. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;The Agreement is hereby amended by replacing the contents of Annex B to the Agreement with the
contents of Exhibit&nbsp;A to this Amendment. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-