Document:

EX-10.36

 Exhibit 10.36 

SURGICAL CARE AFFILIATES, INC. 

2016 OMNIBUS LONG-TERM INCENTIVE PLAN 

CASH INCENTIVE AWARD AGREEMENT 

This Cash Incentive Award Agreement (this “Agreement”) is entered into as of
                     (the “Grant Date”), by and between Surgical Care Affiliates, Inc., a Delaware corporation (the
“Company”), and                     , an employee of the Company or one or more of its Subsidiaries (the
“Participant”). 
 Pursuant to the Surgical Care Affiliates, Inc. 2016 Omnibus Long-Term Incentive Plan (the
“Plan”), the Board of Directors of the Company, or its Compensation Committee or a designee thereof (the “Administrator”), has determined that the Participant shall be granted an Incentive Award in the form of a
cash bonus (the “Cash Incentive Award”) upon the terms and subject to the conditions hereinafter contained. Pursuant to Section 7 of the Plan, the Administrator has the authority to designate, and has so designated, the Cash
Incentive Award as “Performance-Based Compensation” in order to qualify such Cash Incentive Award as “performance-based compensation” under Section 162(m) of the Code. Capitalized terms used but not defined herein shall have the
meanings assigned to them in the Plan. 
 1.     Cash Incentive Award and Payment. The
Participant is hereby granted the right to earn a Cash Incentive Award in the target amount of $         (the “Target Award”), subject to the restrictions set forth herein. This Cash
Incentive Award represents the right to earn up to      percent (    %) of the Target Award and the actual amount of the Participant’s Cash Incentive Award, if any, shall be determined pursuant to
Section 2 below, upon the terms and subject to the conditions set forth in this Agreement and the Plan. For purposes of this Agreement, the term “Performance Period” shall be the period commencing on
                     and ending on
                    . 
 2.
    Performance Goal; Earned Cash Award. 
 (a)    The amount of the Cash Incentive Award
earned by the Participant for the Performance Period will be determined at the end of the Performance Period based on the level of achievement of the Performance Goal in accordance with Exhibit A. Subject to the terms of this Agreement, if
the threshold level of the Performance Goal is not reached for the Performance Period, the Participant’s right to receive the Cash Incentive Award pursuant to this Agreement shall automatically expire and be forfeited without payment of any
consideration, effective as of the last day of the Performance Period. All determinations of whether the Performance Goal has been achieved, the amount of the Cash Incentive Award earned by the Participant, and all other matters related to this
Section 2 shall be made by the Administrator in its sole discretion. 
 (b)    Promptly following completion of the
Performance Period, and in any event within two and one-half (2  1⁄2) months following the end of the Performance
Period, (a) the Administrator will review and certify in writing (i) whether, and to what extent, the Performance Goal for the Performance Period has been achieved, and (ii) the amount of the Cash Incentive Award that the Participant
has earned (the “Earned Cash Award”), and (b) the Company shall pay the amount of the Earned Cash Award to the Participant. Such written certification of the Administrator shall be final, conclusive and binding on the
Participant, and on all other persons, to the maximum extent permitted by law. 
 3.    Effect of Certain
Changes. 
 (a)    Notwithstanding Section 4 hereof, in the event the Company terminates the
Participant’s Employment without Cause following the consummation of a Change in Control, with such termination occurring during the Performance Period, then the Cash Incentive Award shall be deemed earned at the

 
Target Award level on the effective date of the Change in Control and such Earned Cash Award shall be paid as soon as practicable after such termination of Employment, and in any event not more
than 30 days following such termination of Employment, but only if permissible under Section 409A of the Code; if such settlement is not permissible under Section 409A of the Code, then settlement shall occur in accordance with the other
terms of this Agreement. For purposes hereof, “Cause” shall mean, unless otherwise provided in an employment agreement in effect immediately prior to such termination, (i) a failure of the Participant to reasonably and
substantially perform his or her duties to the Company or any of its Subsidiaries (other than as a result of physical or mental illness or injury); (ii) the Participant’s willful misconduct or gross negligence; (iii) a breach by the
Participant of the Participant’s fiduciary duty or duty of loyalty to the Company or any of its Affiliates; (iv) the commission by the Participant of any felony or other serious crime; or (v) a breach by the Participant of the
terms of any agreement with the Company or any Subsidiary or any Company policies. 
 (b)    If the Participant is a
party to an employment agreement with the Company or any subsidiary of the Company that contains a provision that provides for the payment of any portion of a cash bonus or cash incentive award upon a termination of Employment without Cause
following the consummation of a Change in Control, then the terms of Section 3(a) hereof shall be disregarded and the terms of such employment agreement shall control. 

4.     Termination of Employment. 

(a)    In the event that the Participant ceases to be Employed by the Company or any of its Subsidiaries for any reason
other than death or disability prior to the last day of the Performance Period, the Participant’s right to receive the Cash Incentive Award pursuant to this Agreement shall automatically expire and be forfeited without payment of any
consideration, effective as of the date of the termination of Employment. 
 (b)    In the event that the Participant
ceases to be Employed by the Company or any of its Subsidiaries as a result of the Participant’s death or disability prior to the last day of the Performance Period, the Participant will receive a pro rata portion of the Earned Cash Award
otherwise payable pursuant to Section 2 hereof, with such pro rata portion calculated by multiplying the Earned Cash Award that would have been paid had the Participant’s Employment not terminated during the Performance Period by a
fraction, the numerator of which equals the number of days that the Participant was employed during the Performance Period and the denominator of which equals the total number of days in the Performance Period. The Company shall pay the pro rata
portion of the Earned Cash Award in accordance with the timing specified in Section 2(b) hereof. 
 5.
    Taxes. The Participant shall be liable for the taxes with respect to the Earned Cash Award. The Company shall be entitled to offset the amount due for any such taxes against any amounts, including
shares of Common Stock, owed by the Company to the Participant, whether under this Agreement or otherwise, to the extent permitted by Section 409A of the Code. 

6.     No Guarantee of Employment. Nothing set forth herein or in the Plan shall
(i) confer upon the Participant any right of continued Employment for any period by the Company or any of its Subsidiaries, (ii) entitle the Participant to remuneration or benefits not set forth in the Plan, or (iii) interfere with or
limit in any way the right of the Company or any Subsidiary to terminate such Participant’s Employment. 
 7.
    Notices. Any notice required or permitted under this Agreement shall be in writing and deemed given when (i) delivered personally, (ii) mailed by United States certified or registered mail,
return receipt requested, postage prepaid, or (iii) delivered by overnight courier service. Such notices shall be sent to the Participant at the last address specified in the Company’s records (or such other address as

  
 2 

 
the Participant may designate in writing to the Company), or to the Company at the following address (or such other address as the Company may designate in writing to the Participant): 

Surgical Care Affiliates, Inc. 

569 Brookwood Village, Suite 901 

Birmingham, AL 35209 
 Attn:
General Counsel 
 8.     Failure To Enforce Not a Waiver. The failure of the Company to
enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof. 

9.     Governing Law. This Agreement shall be governed by and construed according to the laws
of the State of Delaware, without regard to its conflict of law principles. 
 10.     Incorporation of
Plan. A copy of the Plan is attached hereto and incorporated herein by reference and made a part of this Agreement. This Agreement and the Performance Shares shall be subject to the terms of the Plan, as it may be amended from time to
time, provided that such amendment of the Plan is made in accordance with Section 16 of the Plan. 
 11.
    Clawback Policies. Notwithstanding anything in the Plan to the contrary, the Company will be entitled, to the extent permitted or required by applicable law (including Section 409A of the Code), Company policy
and/or the requirements of an exchange on which the Company’s shares are listed for trading, in each case, as in effect from time to time, to recoup compensation of whatever kind paid by the Company or any of its Affiliates at any time to a
Participant under the Plan and the Participant, by accepting this award of Performance Shares pursuant to the Plan and this Agreement, agrees to comply with any Company request or demand for such recoupment. 

12.     Section 162(m). The payment of the Earned Cash Award under this Agreement is intended to
constitute “qualified performance-based compensation” within the meaning of Section 162(m) of the Code. This Cash Incentive Award shall be construed and administered in a manner consistent with such intent. 

13.    Employment Agreement. Notwithstanding anything contained in this Agreement to the
contrary, to the extent that the terms set forth in this Agreement are inconsistent with equivalent terms of any employment agreement between the Participant and the Company (including, without limitation, the terms relating to the consequences of a
termination of the Participant’s Employment), the terms of such employment agreement shall control. 

14.    Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original but all of which together shall represent one and the same agreement. 
  

							
	SURGICAL CARE AFFILIATES, INC.:	 		 	PARTICIPANT:
				
	By:	 	  
	 		 	  

		 	Name:	 		 	[Name]
		 	Title:	 		 	
		 		 		 	  

		 		 		 	Date:

  
 3 

 EXHIBIT A 

Performance Goal 
 The
Participant’s Target Award is $         and the Earned Cash Award will be based     % on the Company’s attainment of the Adjusted E-NCI
Target (as defined below),     % on the Company’s attainment of the Patient Satisfaction Net Promoter Score (“NPS”) Target (as defined below) and     % on the Company’s attainment of
the New Investments Performance Target (as defined below) (collectively, the “Performance Goal”). The Participant is eligible to receive (i) $         if the Company attains the Adjusted E-NCI Target (the “Adjusted E-NCI Award”), (ii) $         if the Company attains the Patient Satisfaction NPS Target
(the “Patient Satisfaction NPS Award”) and (iii) $         if the Company attains the New Investments Performance Target (the “New Investments Performance Award”). Depending
on the Company’s achievement of the Performance Goal, the Participant may earn between 0% (if the minimum thresholds set forth below are not reached) and     % of the Target Award (if the maximum thresholds set forth below
are reached). 
 Determining the Earned Cash Award 

Except as otherwise provided in the Plan or the Agreement, the Earned Cash Award with respect to the Performance Period shall be based on the
following three (3) Performance Criteria: 
  

	1.	Adjusted E-NCI: 

  

	 	(a)	“Adjusted EBITDA-NCI” (or “Adjusted E-NCI”) is defined as net income (loss) attributable to the Company
before interest income, income tax expense, debt related interest expense and amortization of debt discount, depreciation and amortization, income or loss from discontinued operations (net of income tax expense), and gains or losses on sale of
investments or disposal of assets; and any other adjustments for non-recurring items as approved by the Compensation Committee. 

 

	 	(b)	The target Adjusted E-NCI (the “Adjusted E-NCI Target”) for the Performance Period is
$        , and the percentage of the Adjusted E-NCI Award that the Participant will earn is based on the Company’s Adjusted
E-NCI in                      (“Actual Adjusted
E-NCI”) compared to the Adjusted E-NCI Target, as follows: 

  

	 	•	 	Threshold:     % of the Adjusted E-NCI Award is earned if Actual Adjusted E-NCI is     % of
the Adjusted E-NCI Target. None of the Adjusted E-NCI Award is earned if Actual Adjusted E-NCI is less than
    % of the Adjusted E-NCI Target. 

  

	 	•	 	Target:     % of the Adjusted E-NCI Award is earned if Actual Adjusted E-NCI is     % of the
Adjusted E-NCI Target. 

  

	 	•	 	Maximum:     % of the Adjusted E-NCI Award is earned if Actual Adjusted E-NCI equals or exceed
    % of the Adjusted E-NCI Target. 

  

	 	•	 	Interpolation: The Company will interpolate between the threshold, target and maximum goals. 

  
 4 

	2.	Patient Satisfaction NPS: 

  

	 	(a)	“Patient Satisfaction Net Promoter Score” (or “Patient NPS”) is a measure of loyalty based on asking patients whether they would recommend our facilities to a friend or family member or
colleague. 

  

	 	(b)	The target Patient Satisfaction NPS (the “Patient Satisfaction NPS Target”) for the Performance Period is a Patient Satisfaction NPS of
                    , and the percentage of the Patient Satisfaction NPS Award that the Participant will earn is based on the Company’s Patient
Satisfaction NPS in                      (“Actual Patient Satisfaction NPS”), as follows: 

 

	 	•	 	Threshold:     % of the Patient Satisfaction NPS Award is earned if the Actual Patient Satisfaction NPS is     . None of the Patient Satisfaction NPS Award is earned if the
Actual Patient Satisfaction NPS is less than     . 

  

	 	•	 	Target:     % of the Patient Satisfaction NPS Award is earned if the Actual Patient Satisfaction NPS is     . 

 

	 	•	 	Interpolation: The Company will interpolate between the threshold and target goals. 

  

	3.	New Investments Performance: 

  

	 	(a)	“New Investments Performance” is the performance of investments in new facilities for the trailing 24 months compared to the projected performance. 

 

	 	(b)	The target New Investments Performance (the “New Investments Performance Target”) for the Performance Period is     %, and the percentage of the New Investments Performance Award
that the Participant will earn is based on the Company’s New Investments Performance in                      (“Actual New Investments
Performance”), as follows: 

  

	 	•	 	Threshold:     % of the New Investments Performance Award is earned if Actual New Investments Performance is     %. None of the New Investments Performance Award is earned
if Actual New Investments Performance is less than     %. 

  

	 	•	 	Target:     % of the New Investments Performance Award is earned if Actual New Investments Performance is     %. 

 

	 	•	 	Maximum:     % of the New Investments Performance Award is earned if Actual New Investments Performance equals or exceeds     %. 

Interpolation: The Company will interpolate between the threshold, target and maximum goals. 

  
 5Exhibit 4.2

 

English Summary of the Office Lease Agreement dated as of May 30, 2004 by and between Azorei Mallal Industries Ltd. (the "Landlord") and CyberArk Software Ltd. (the "Company") (the "Original Lease"), as amended by those certain Addendums dated May 3, 2007, March 29, 2009, September 16, 2009, January 11, 2010, March 16, 2010, August 5, 2012, December 7, 2010, March 7, 2011, May 25, 2011, January 9, 2012, February 16, 2012, September 10, 2012, October 11, 2012, January 29, 2013, December 12, 2013, November 15, 2015, January 7, 2016, May 30, 2016, December 4, 2016, January 15, 2017, January 28, 2017 and February 19, 2017 (collectively, the "Lease Agreement").

 

		·	
Subject Matter of the Lease Agreement: Unprotected tenancy lease of office and parking spaces for the purpose of conducting the Company's business. Premises are located in Petach-Tikva, Israel.

 

		·	
Term of Original Lease:

 

		·	
The term of the Original Lease was thirty-six (36) months commencing on July 1, 2004, with the Company's right for early termination (which was not exercised by the Company). Under the Original Lease, the Company was given two options to extend the term of the lease, each by a twelve (12)-month period (subject to certain prior notices to the Landlord).

 

		·	
The term of the lease was extended several times over the years. Currently, the lease is set to expire on the later of June 30, 2017 and the date on which the Company receives control of the new premises it is leasing from the Landlord (with no right for early termination by the Company).

 

		·	
The term of the lease of all parking spaces leased by the Company from time to time is linked to the lease term of the main premises.

 

		·	
Premises Covered by the Lease Agreement:

 

		·	
Property – Under the Original Lease, the Company leased 843 square meters (gross) (approximately 9,074 square feet). Since then the Company has leased additional premises as follows: 550 square meters (gross) (approximately 5,920 square feet) under the May 3, 2007 Addendum, 630 square meters (gross) (approximately 6,781 square feet) under the February 16, 2012 Addendum, 867 square meters (gross) (approximately 9,332 square feet) under the January 29, 2013 Addendum, 670 square meters (gross) (approximately 7,212 square feet) under the December 12, 2013 Addendum, 250 square meters (gross) (approximately 2,691 square feet) under the November 15, 2015 Addendum, 579 square meters (gross) (approximately 6,232 square feet) under the January 7, 2016 Addendum, and 1,540 square meters (gross) (approximately 16,576 square feet) under the December 4, 2016 Addendum. In total, the Company currently leases 5,929 square meters (gross) (approximately 64,000 square feet).

 

		·	
Parking – The Company originally leased ten (10) parking spaces, and currently leases two hundred and thirty (230) parking spaces.

 

		·	
Rental Fees:

 

		·	
Property – Under the Original Lease, during the original lease term the Company was to pay monthly rental fees of US $10 per square meter (gross). Such rental fees were to increase to US $10.75 for the two option periods under the Original Lease. All rental fees under the Original Lease were based on a fixed 4.587 NIS/Dollar exchange rate, exclusive of VAT and index-linked to the Consumer Price Index published by the Central Bureau of Statistics (the "Index"); provided that the rental fees shall not be less than the nominal values listed above.

 

Currently, the monthly rental fee for the premises leased by the Company is NIS 67.87 per square meter (gross), plus VAT and linked to the Consumer Price Index published by the Central Bureau of Statistics and known on December 6, 2012 (and shall not be reduced below such amount); provided that the rental fees per square meter shall not be less than the nominal values listed above and provided further that, with respect to the premises leased under the November 15, 2015 Addendum, the monthly rental fee is NIS 71.00 per square meter, with respect to premises leased under the January 7, 2016 Addendum, the monthly rental fee is NIS 65.00 per square meter and with respect to premises leased under the December 4, 2016 Addendum, the monthly rental fee is NIS 72.00 per square meter. In the event that the lease is extended until December 31, 2018, the monthly rental fee shall be increased by 5% compared to the monthly rental fee actually paid by the Company for the December 2017 lease.

 

		·	
Parking – The monthly rental fee for the parking spaces currently leased by the Company ranges from NIS 360 to NIS 480 per parking space, in each case plus VAT and Index-linked.

 

		·	
Management Fees – The management fees currently being paid by the Company with respect of an aggregate of 2,023 square meters (gross) (approximately, 21,775 square feet) equal to NIS 15.5 per square meter (gross) and with respect of the remaining 3,906 square meters (gross) (approximately, 25,467 square feet) paid on a cost plus 15% basis (approximately NIS 20 per square meter), in each case plus VAT and Index-linked.

 

		·	
Guarantees –

 

		·	
An autonomous un-conditioned bank guarantee, for three (3) months' rental fee plus VAT, to be extended from time to time by the Company to remain in effect for the duration of the term of lease and for thirty (30) days thereafter.

 

		·	
Dispute Resolution –

 

		·	
The Lease Agreement shall be governed by an agreed-upon arbitrator, the identity of which shall be determined between the parties (and with respect to legal disputes – by the parties' legal counsels). In the lack of such agreement, the identity of the arbitrator shall be decided by the Chairman of the Israeli Bar Association or the Chairman of the Engineers and Architects' Association, as applicable.

 

		·	
Other Terms under the Lease Agreement:

 

		·	
The Company has a right to sub-lease the premises (or any portion thereof), subject to the Landlord's prior written consent (not to be unreasonably withheld). The Company may also transfer its rights to the premises to an affiliate, subject to the Landlord's prior written consent (not to be unreasonably withheld).

 

		·	
Similar to other lease agreements, the Company agreed to assume responsibility for all fees, municipal or local taxes, utility payments, etc.; provided that the Landlord shall bear any and all taxes and fees, which by their nature are levied on property owners.

 

		·	
Similar to other lease agreements, each party has agreed to assume responsibility for any damage, injury or loss (bodily or otherwise) resulting from any act, omission or negligence on its part, and with respect of the Company – relating to its use of the property being leased.

 

		·	
The Lease Agreement further includes terms concerning the following non-material matters:

 

		·	
Renovations – Generally, the Company may not perform any major renovations on the premises without prior written authorization from the Landlord. Subject to such advance approval by the Landlord, the Company may invest certain amounts on renovations for which the Landlord has agreed to reimburse the Company for a certain percentage of the costs.

 

		·	
Late Rental Fees – In the event the Company fails to pay any of its rental fees on time, the amount overdue accrues interest based on Bank Hapoalim Ltd.'s standard rate for unauthorized overdrafts starting from the tenth day following the payment due date until the actual date of payment. If the amount due is for rental, management or electricity fees, the Landlord is entitled to stop any of these services other than disconnecting water and power, provided it shall notify the Company in writing seven days in advance.

- 2 -

		·	
Utilities – The Company is responsible for paying for water, power and telephone utility bills, in addition to any taxes or fees, tolls, levies, property taxes and any other payments owed to governmental or local authorities relating to the property during the term of the Lease Agreement, unless such fees are specifically designated for the property owner.

 

		·	
No Right of set-off – The parties have agreed that any amounts owed shall not be subject to a set-off right.

 

		·	
Termination of the lease, vacating of premises and fixtures – Upon the termination of the Lease Agreement, the Company shall vacate the premises from any person or object which is not owned by the Landlord and return it to the Landlord in an undamaged, usable state. The Company has sole discretion to remove any fixtures, provided such removal does not damage the premises and provided that the Landlord will have no duty to compensate the Company for fixtures which it decides to leave.

 

		·	
Early termination rights and taxes with respect to parking spaces – The Company is entitled to park its vehicles on the premises during the term of the Lease Agreement, although the Landlord may terminate such right at any time upon 60 days advance notice. The Company has agreed to allow the Landlord to use the extra parking spaces at the premises on an as available basis. The fees that the Company pays for parking spaces under the Lease Agreement include maintenance and management fees but do not include property tax or any other fees imposed by local authorities and for which the Company shall be liable immediately upon demand.

 

		·	
Payment Method– The rental fees shall be paid three months in advance by no later than the fifth day of the month during which a payment is made. The Company has agreed to sign a direct debit with respect to the rental and management fees. In the event the Company is over-charged, that extra amount shall be remitted to the Company within five business days.

 

- 3 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}]]