Director and Audit Committee Chair Compensation Agreement between Surgical Care Affiliates, LLC and Frederick A. Hessler

Summary

This agreement outlines the compensation terms for Frederick A. Hessler as a director and Audit Committee Chair of Surgical Care Affiliates, LLC. Mr. Hessler will receive an annual cash retainer of $50,000 for board service and $30,000 in restricted stock units, vesting over two years. As Audit Committee Chair, he will receive an additional $15,000 annual cash retainer. He is expected to attend board and committee meetings, with reasonable travel expenses reimbursed. Continued service is subject to the company’s limited liability agreements.

EX-10.27 6 d656152dex1027.htm EX-10.27 EX-10.27

Exhibit 10.27

[Letterhead]

October 1, 2013

Frederick A. Hessler

169 East 69th Street, Penthouse B

New York, NY 10021

***@***

Dear Fred:

We would like to set forth the terms of your compensation as a director on the board of directors (the “Board”) of Surgical Care Affiliates, LLC, a Delaware limited liability company (“SCA”), and such other subsidiaries of SCA as the Managing Member of ASC Acquisition LLC, a Delaware limited liability company (the “Parent”), may reasonably request from time to time. The terms of this letter agreement (this “Agreement”) will be effective as of your appointment to the Board, expected October 1, 2013 (the “Effective Date”).

 

  I. Annual Board of Directors Compensation

For your service as a Board members, you will receive (a) an annual cash retainer of $50,000, payable in equal quarterly installments of $12,500 in arrears within 30 days after the end of each quarter of service (if you serve part of a quarter, the payment will be prorated based on the number of weeks in the quarter served and paid within 30 days of the termination of your service), and (b) $30,000 in the form of restricted stock units (the “RSUs”) of the Parent, pursuant to a Restricted Equity Unit Grant Agreement in the form attached hereto. The initial RSU grant will occur as soon as practicable after the date hereof and will be effective for purposes of vesting as of October 1, 2013. Thereafter you shall receive $30,000 in the form of RSUs of the Parent on or about each anniversary of October 1, subject to your continuing to serve on the Board on each such anniversary. The RSUs will vest ratably over a two-year period (i.e., 50% vested 12 months after the grant and 100% vested 24 months after the grant), subject to your continuing to serve on the Board through such date.

 

  II. Compensation for Service as Audit Committee Chair

This letter will also confirm your selection and your agreement to serve as the Chair of SCA’s Audit Committee. For such service, you will receive an annual cash retainer of $15,000, payable in equal quarterly installments of $3,750 in arrears within 30 days after the end of each quarter of service (if you serve part of a quarter, the payment will be prorated based on the number of weeks in the quarter served and paid within 30 days of the termination of your service).


  III. Attendance at Board and Audit Committee Meetings

You will be expected to use your reasonable best efforts to attend all Board and Audit Committee meetings, and will be expected to attend a minimum of three quarterly Board meetings each year in person. Otherwise, you may attend such meeting by telephonic or other electronic means. Reasonable expenses actually incurred by you in traveling to the Board or Audit Committee Meetings shall be reimbursed by SCA upon presentation of such documentation as SCA may reasonably request.

 

  IV. Reelection to the Board and as Audit Committee Chair

Your continued service on the Board will be subject in all respects to the provisions of the limited liability agreements of each of SCA and the Parent.

 

Sincerely,
ASC ACQUISITION LLC, sole member of Surgical Care Affiliates, LLC
By: TPG Partners V, L.P., its Managing Member
By: TPG GenPar V, L.P., its general partner
By: TPG Advisors V, Inc., its general partner
By:  

/s/ Todd Sisitsky

  Name:   Todd Sisitsky
  Title:   Vice President

 

ACCEPTED:

/s/ Frederick A. Hessler

Frederick A. Hessler
Date:  

Oct. 7, 2013