Document:

Form of stock option agreement for option grant under 2008 Plan

 Exhibit 10.20 
 Stock Option Agreement 
 (Nonstatutory Stock Option
Under 
 Stericycle, Inc. 2008 Incentive Stock Plan) 
 Subject to the following terms, Stericycle, Inc., a Delaware corporation (the “Company”), grants to the following employee of the
Company or one of its subsidiaries (the “Employee”), as of the following grant date (the “Option Grant Date”), a nonstatutory stock option (the “Option”) to purchase the following number of shares of the Company’s
common stock, par value $.01 per share (the “Option Shares”), at the following purchase price per share (the “Exercise Price”), exercisable in installments in accordance with the following vesting schedule: 
  

			
	Employee:	 	
	Grant Date:	 	
	Number of Option Shares:	 	
	Exercise Price Per Share:	 	
	 Vesting Schedule:
	 	 One-fifth of the Option Shares will vest on each
 of the first five anniversaries of the Grant Date

	Expiration Date of Option:	 	

 Terms of Option 
 1. Plan. This Option has been granted under the Stericycle, Inc. 2008 Incentive Stock Plan (the “Plan”), which is
incorporated in this Agreement by reference. Capitalized terms used in this Agreement without being defined (for example, the term “Plan Administrator”) have the same meanings that they have in the Plan. 
 2. Exercisability. The Option may be exercised in whole or in part at any time prior to its Expiration Date to the extent that it is
vested at the time of exercise. 
 The Option shall not continue to vest after the Employee’s Termination Date (but the
Option shall become fully vested as of the Employee’s Termination Date if the Employee’s termination of employment occurs by reason of his or her death). 
 Any vested portion of the Option that remains unexercised shall expire on the Expiration Date. The Option shall be subject to earlier expiration as provided in Paragraph 5. 
 The Option shall become fully vested upon a Change in Control prior to the Employee’s Termination Date, as provided in Article 6 of the
Plan. 
 3. Manner of Exercise. The Option may be exercised in respect of a whole number of Option Shares (and only in
respect of a whole number) by: 
 (a) written notice of exercise to the Plan Administrator (or its designee) at
the Company’s principal executive offices (which are currently located at 28161 North Keith Drive, Lake Forest, Illinois 60045), which is received prior to the Option’s Expiration Date; 

 (b) full payment of the Exercise Price of the Option Shares in respect of
which the Option is exercised; and 
 (c) full payment of an amount equal to the Company’s federal, state
and local withholding tax obligation, if any, in connection with the exercise. 
 In addition, the exercise of the Option shall
be subject to any procedures and policies in effect at the time of exercise that the Plan Administrator has adopted to administer the Plan. 
 4. Manner of Payment. The Employee’s payment of the Exercise Price of the Option Shares in respect of which the Option is exercised, and his or her payment of the Company’s withholding
tax obligation, if any, in connection with the exercise, shall be made by certified or bank cashier’s check or by a wire transfer of immediately available funds. 
 Payment also may be made by means of a “cashless” net exercise through a broker approved by the Plan Administrator for the purpose, pursuant to which the full amount due to the Company is
remitted directly by the broker from the net proceeds of the sale of a sufficient number of Option Shares. In addition, payment may be made in any other manner authorized by the Plan and specifically permitted by the Plan Administrator at the time
of exercise. 
 5. Early Expiration of Option. If the Employee ceases to serve as an employee of the Company or a
Subsidiary, the unvested portion of the Option shall expire on the Employee’s Termination Date (unless the Employee’s termination of employment occurs by reason of his or her death, in which case, as provided in Paragraph 2, the Option
shall become fully vested as of the Employee’s Termination Date). 
 The vested portion of the Option shall expire on the
earlier of (i) 90 days after the Employee’s Termination Date or (ii) the Option’s Expiration Date, unless the Employee’s employment terminated by reason of his or her death. In this case, the Option shall expire on the
earlier of (i) the first anniversary of the Employee’s death or (ii) the Option’s Expiration Date. In any case, the exercisability of the Option may be extended by the Plan Administrator, in the Plan Administrator’s sole
discretion, to any date ending on or before the Option’s Expiration Date. 
 6. Transferability. The Option may not
be transferred, assigned or pledged (whether by operation of law or otherwise), except as provided by will or the applicable intestacy laws; and the Option shall not be subject to execution, attachment or similar process. The Option may be exercised
only by the Employee or, in the case of his or her death, by the person or persons to whom the Option passes by the Employee’s will or the applicable intestacy laws (or by the legal representative of the Employee’s estate). 
 7. Interpretation. This Agreement is subject to the terms of the Plan, as the Plan may be amended (but except as required by
applicable law, no amendment of the Plan after the Option Grant Date shall adversely affect the Employee’s rights in respect of the Option without the Employee’s consent). If there is a conflict or inconsistency between this Agreement and
the Plan, the terms of the Plan shall control. The Plan Administrator’s interpretation of this Agreement and the Plan shall be final and binding. 
  

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 8. No Employment Right. Nothing in this Agreement shall be considered to confer on
the Employee any right to continue in the employ of the Company or a Subsidiary or to limit the right of the Company or a Subsidiary to terminate the Employee’s employment. 
 9. Governing Law. This Agreement shall be governed in accordance with the laws of the State of Illinois. 
 10. Binding Effect. This Agreement shall be binding on the Company and the Employee and on the Employee’s heirs, legatees and
legal representatives. 
 11. Effective Date. This Agreement shall not become effective until the Employee’s
acceptance of this Agreement and the related Confidentiality, Nonsolicitation and Noncompetition Agreement. Upon the Employee’s acceptance, this Agreement shall become effective, retroactive to the Option Grant Date, without the necessity of
further action by either the Company or the Employee. 
  

 3Bonus conversion program (2010 plan year)

 Exhibit 10.21 
 Program Year 2010 
 BONUS CONVERSION PROGRAM 

 Summary of Program Terms 
 Program Objectives 
  

	 	•	 	 To increase the opportunity for employee ownership of Stericycle stock 

  

	 	•	 	 To provide an alternative means of deferring the tax obligation on incentive compensation 

 Program Overview 
 The Bonus Conversion
Program provides you with an opportunity to defer current taxation into the future and to increase your ownership of Stericycle stock. This Program allows you to receive a vested Stericycle non-qualified stock option in lieu of all or a portion of
any annual, quarterly or monthly cash bonus that Stericycle otherwise would pay you. If you elect to participate for the 2010 Program Year, you will receive a vested option during the first quarter of 2011 to purchase $4.00 or more worth of
Stericycle stock for every $1 of your annual bonus, quarterly bonuses or monthly bonuses for 2010 that you elected to forego. The number of option shares will be equal to (a) 4 times the amount that you elected to forego divided by (b) the
average closing price of Stericycle stock during 2010. The exercise price per share of the option will be the closing price of the stock on the date of the option grant. For example, if under this Program you elect to forego $10,000 of your annual
bonus for 2010, you will receive a vested option to purchase, at the option exercise price, a number of shares equal to $40,000 divided by the average closing price of Stericycle stock during 2010 (or, if lower, the closing price on the date of the
option grant). 
 The Bonus Conversion Program provides participants with an excellent opportunity to accumulate wealth if Stericycle stock
performs well. A stock investment includes a potential for significant gain as well as an investment risk. The program is designed to provide a $4-for-$1 or greater replacement ratio or premium for risk because if you participate you will be trading
certain cash for uncertain investment gain. With the $4-for-$1 or greater replacement ratio, your potential for gain depends on whether Stericycle stock performs well. However, your risk is that Stericycle stock may not appreciate and you may not
recover the amount of your cash bonus given up or match the earnings you could have received under an alternative investment. 
 Enrollment

 THE ENCLOSED ELECTION FORM MUST BE COMPLETED AND RETURNED AS INDICATED ON THE FORM. THIS FORM MUST BE COMPLETED AND RETURNED EVEN IF YOU
ELECT NOT TO PARTICIPATE. YOUR PARTICIPATION IN THE PROGRAM IS NOT A STERICYCLE PROMISE THAT YOU WILL RECEIVE A BONUS OF ANY PARTICULAR AMOUNT OR ANY BONUS AT ALL. 

 Program Design 
  

	 	•	 	 Participants may elect to convert up to 100% of their annual, quarterly or monthly cash bonuses for 2010 (if any) (minimum of $1,000 in the aggregate)
into a Stericycle non-qualified stock option 

  

	 	•	 	 Eligibility: Grade level S11 and above as approved by Board of Directors 

  

	 	•	 	 Replacement ratio, or premium for risk, is $4 for options to purchase Stericycle stock for every $1 of cash bonus foregone.

  

	 	•	 	 The number of option shares will be equal to (a) 4 times the amount that a participant elected to forego divided by (b) the average closing
price of Stericycle stock during 2010 (or, if lower, the closing price on the date of the option grant). The exercise price per share of the option will be the closing price of Stericycle stock on the date of the option grant.

  

	 	•	 	 In the case of quarterly or monthly bonuses, the percentage that a participant elects to convert will apply to each of the participant’s quarterly
or monthly bonuses for 2010. 

  

	 	•	 	 Participants forego all or a portion of their cash bonuses (before any withholding that would have been taken out) in order to receive stock options.
Generally, a participant will be taxed at ordinary income rates on the option gain upon exercise of the stock option. Upon sale of the shares, any additional gain or loss will be taxed as short-term or long-term capital gain or loss depending on the
holding period of the stock for tax law purposes. 

  

	 	•	 	 An election to participate in this Program must be made by the election deadline to avoid constructive receipt and securities law restrictions. An
election is irrevocable and cannot be changed by the participant after the election deadline. New employees who start after January 31, 2010 will not be eligible to participate in the Bonus Conversion Program for 2010.

  

	 	•	 	 Participants vest in the stock options immediately. 

  

	 	•	 	 Option term: 10 years—participants have 10 years from date of grant to exercise options. 

  

	 	•	 	 In the event of death, disability, resignation, retirement, or other termination of employment (other than termination for cause), the stock option
remains exercisable until the end of the 10-year option term. 

 Any stock options you elect to receive will be issued under
any available Stericycle stock option plan and the terms of that plan and the related option Agreement will apply to your stock option. 
  

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