Document:

Exhibit 10.1

 Exhibit 10.1 
 PROMISSORY NOTE 
  

			
	$200,000	  	As of July 24, 2006

 Alexandria, VA 
 UNION STREET ACQUISITION CORP. (the “Maker”) promises to pay to the order of UNION STREET CAPITAL MANAGEMENT, LLC (the “Payee”) the principal sum of Two
Hundred Thousand Dollars ($200,000) and no cents in lawful money of the United States of America (this “Note”), on the terms and conditions described below. 
 1. Principal. The principal balance of this Note shall be payable on the earlier of (a) July 24, 2008 and (b) the date on
which Maker consummates an initial public offering of its securities under the Securities Act of 1933, as amended. 
 2. Interest. No interest shall accrue on the unpaid principal balance of this Note. 
 3. Application of
Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under this Note, including (without limitation) reasonable attorneys’ fees, then to the reduction of the unpaid
principal of this Note. 
 4. Events of Default. Each of the following shall constitute an event of default (“Event of
Default”) under this Note: 
 (a) Failure to Make Required Payments. Failure by Maker to pay the principal of this
Note within five (5) business days following the date when due. 
 (b) Voluntary Bankruptcy, Etc. The commencement by Maker
of a voluntary case under the Federal Bankruptcy Code, as now constituted or hereafter amended, or any other applicable federal or state bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or the consent by it to the
appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment for the benefit of
creditors, or the failure of Maker generally to pay its debts as such debts become due, or the taking of corporate action by Maker in furtherance of any of the foregoing. 
 (c) Involuntary Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of maker in an involuntary case under the Federal Bankruptcy Code, as
now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any
substantial part of its property, or ordering the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of sixty (60) consecutive days. 

 5. Remedies. 
 (a) Upon the occurrence of an Event of Default specified in Section 4(a) hereof, Payee may, by written notice to Maker, declare this Note to be immediately due and payable, whereupon the unpaid principal
amount of this Note, and all other amounts payable hereunder, shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the
documents evidencing the same to the contrary notwithstanding. 
 (b) Upon the occurrence of an Event of Default specified in either
Section 4(b) or Section 4(c) hereof, the unpaid principal balance of this Note, and all other amounts payable hereunder, shall automatically and immediately become due and payable, in all cases without any action on the part of Payee,
including presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived. 
 6. Waivers.
Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings
instituted by Payee under the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property, real or personal, or any part of the proceeds arising from any sale of any such property,
from attachment, levy or sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by
virtue hereof, on any writ of execution issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee. 
 7. Unconditional Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this Note, and agrees that its liability shall be unconditional,
without regard to the liability of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Payee, and consents to any and all extensions of time,
renewals, waivers, or modifications that may be granted by Payee with respect to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors, or sureties may become parties hereto without notice to it or
affecting its liability hereunder. 
 8. Notices. Any notice called for hereunder shall be deemed properly given if in writing
and (i) sent by certified mail, return receipt requested, (ii) personally delivered, (iii) dispatched by any form of private or governmental express mail or delivery service providing receipted delivery, (iv) sent by confirmed
telefacsimile or (v) sent by confirmed e-mail, to the following addresses or to such other address as either party may designate by notice in accordance with this Section: 

 If to Maker: 
 Union Street Acquisition Corp. 
 102 South Union Street 
 Alexandria, VA 22314 
 If to Payee: 
 Union Street Capital Management, LLC 
 102 South Union Street 
 Alexandria, VA 22314 
 Notice shall be deemed given on the earlier of (i) actual receipt by the receiving party, (ii) the
date shown on the confirmed telefacsimile transmission confirmation, (iii) the date on which an e-mail transmission was received by the receiving party’s on-line access provider, (iv) the date reflected on a signed delivery receipt,
or (v) two (2) Business Days following tender of delivery or dispatch by express mail or delivery service. 
 9. Governing
Law; Construction. This Note, the legal relations between the Maker and Payee and the adjudication and the enforcement hereof shall be governed by, and interpreted in accordance with, the laws of the State of New York applicable to contracts
executed in and to be performed in that state, without regard to the conflicts of law principles to the extent such principles and rules would require or permit the application of the laws of another jurisdiction. 
 10. Severability. Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. 

 IN WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be duly
executed the day and year first above written. 
  

			
	UNION STREET ACQUISITION CORP.
		
	By:	 	 /s/ A. Clayton Perfall

	Name:	 	A. Clayton Perfall
	Title:	 	Chief Executive OfficerPlan of Compensation for Outside Directors

 Exhibit 10.1 
 Plan of Compensation for Outside Directors 
 (Adopted on August 8, 2006) 
  

			
	Annual Compensation
		
	Annual compensation	  	$125,000
		
		  	This amount will be reviewed and updated annually based on informal surveys of outside director compensation.
		
	Conversion to option	  	Subject to the election by an eligible director to receive up to 50% of his annual compensation in cash (see “Minimum Ownership Requirements—Eligibility for cash payment,” below),
the normal form of payment of a director’s annual compensation will be a stock option reflecting a conversion of the cash compensation. This option will be granted upon reelection as a director at the annual meeting of stockholders each
year.
		
	Number of shares	  	The option will be for a number of shares equal to the quotient obtained by dividing (i) 2 times the amount of cash compensation to be converted into an option by (ii) the average closing price
of Stericycle stock during the period from the prior year’s annual meeting through the last trading day before the current annual meeting.
		
	Exercise price	  	The exercise price of the option will be the closing price on the day of the annual meeting.
		
	Vesting	  	The option will vest on the day of the next annual meeting.
		
	Cash payment	  	Any portion of a director’s annual compensation that he elects to receive in cash will be paid in arrears at the same time that the portion converted into an option vests (i.e., on the day
of the next annual meeting of stockholders).
	
	Minimum Ownership Requirements
		
	Minimum ownership	  	All directors will be required to hold a minimum position in Stericycle stock.

  

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		  	For a director with less than five years of service, he must have a position equal to three times the directors’ annual compensation, or $375,000.
		
		  	For a director with five or more years of service, he must have a position equal to five times the directors’ annual compensation, or $625,000.
		
	Measurement	  	A director’s ownership position will be measured by the value of the Stericycle stock that he directly or indirectly owns and the in-the-money value of the Stericycle stock options that he
holds.
		
	Eligibility for cash payment	  	A director who satisfies the minimum ownership requirement may elect to receive up to 50% of his annual compensation in cash. A director who does not satisfy the minimum ownership requirement
must receive his annual compensation in the normal form of payment as a stock option.
		
	Restriction on sale of stock	  	A director who does not satisfy the applicable minimum ownership requirement may not sell any Stericycle stock, with one exception: the director may engage in a “cashless” exercise of
an option and sell a number of shares sufficient to pay the exercise price of the option shares and the related taxes.
	
	Meeting and Other Fees
		
	Meeting fees	  	Directors will not be paid separate fees for attending meetings of the Board of Directors or its committees.
		
	Chairman of the Board	  	No additional fees or compensation will be paid to the Chairman of the Board for his service as chairman.
		
	Audit Committee	  	The chairman of the Audit Committee will be paid a fee of $10,000 per year for his service as chairman.
		
		  	This fee will be paid by adding it to and treating it as a part of the chairman’s annual compensation as a director, with the effect of making 50% of the fee eligible to be received in cash
(if the chairman satisfies the applicable minimum ownership requirement) and converting the balance of the fee (or the entire fee, if the chairman does not satisfy the minimum ownership requirement) into an option.

  

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		  	This fee will be reviewed and updated annually based on informal surveys of outside director compensation.
		
	Compensation Committee	  	The chairman of the Compensation Committee will be paid a fee of $5,000 per year for his service as chairman.
		
		  	This fee will be paid by adding it to and treating it as a part of the chairman’s annual compensation as a director, with the effect of making 50% of the fee eligible to be received in cash
(if the chairman satisfies the applicable minimum ownership requirement) and converting the balance of the fee (or the entire fee, if the chairman does not satisfy the minimum ownership requirement) into an option.
		
		  	This fee will be reviewed and updated annually based on informal surveys of outside director compensation.
	
	Option Grants to New Director
		
	Joining grant	  	A new director will receive two stock options upon joining the Board.
		
		  	The first option, for joining the Board, will be for a number of shares equal to the quotient obtained by dividing (i) 4 times the amount of the directors’ current cash compensation
($125,000) by (ii) the average closing price of Stericycle stock during the 12-month period ending on the last trading day before the director’s election to the Board. The exercise price of the option will be the closing price on the day of the
director’s election, and one-fifth of the option shares will vest on each of the first five anniversaries of the director’s election.
		
	Annual grant	  	The new director will also receive an option reflecting his annual compensation as a director.
		
		  	The option will be for a number of shares equal to a pro rata portion of the quotient obtained by dividing (i) 2 times the amount of the directors’ current cash compensation
($125,000) by (ii) the average closing price of Stericycle stock during the 12-month period ending on the last trading day immediately before the

  

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		  	director’s election to the Board. The exercise price of the option will be the closing price on the day of the director’s election, and the option will vest on the day of the next
annual meeting of stockholders.
		
		  	The pro rata portion means a fraction, the numerator of which is the number of months until the next annual meeting of stockholders and the denominator of which is 12.
	
	Implementation
		
	Procedures	  	Subject to the approval of the Compensation Committee, Stericycle will establish appropriate procedures to implement these compensation terms.
		
	Effective date	  	This plan shall take effect when approved by the full Board of Directors.
		
	Fees to chairmen	  	The additional fees payable to the chairmen of the Audit and Compensation Committees shall be payable for the current year by converting the fees into options as follows:
		
		  	 •      each option shall be for a number of shares equal to the quotient obtained by dividing the amount of
the fee by the average closing price of Stericycle stock during the 12-month period ending on the last trading prior to the approval of this plan by the Board

		
		  	 •      the exercise price of the option will be the closing price on the day of the Board’s
approval

		
		  	 •      the option will vest on the day of the next annual meeting of stockholders

  

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