Document:

EX-10.6

 Exhibit 10.6 

PLIANT THERAPEUTICS, INC. 

NON-EMPLOYEE DIRECTOR COMPENSATION POLICY 

The purpose of this Non-Employee Director Compensation Policy (the “Policy”) of Pliant Therapeutics,
Inc., a Delaware corporation (the “Company”), is to provide a total compensation package that enables the Company to attract and retain, on a long-term basis, high-caliber directors who are not employees or officers of the Company
or its subsidiaries (“Outside Directors”). This Policy will become effective as of the day prior to the effective time of the registration statement for the Company’s initial public offering of equity securities. In furtherance
of the purpose stated above, all Outside Directors shall be paid compensation for services provided to the Company as set forth below: 
  

	 	I.	 Cash Retainers 

(a) Annual Retainer for Board Membership: $35,000 for general availability and participation in meetings and conference calls of our
Board of Directors, to be paid quarterly in arrears, pro-rated based on the number of actual days served by the director during such calendar quarter. No additional compensation for attending individual Board
meetings. 
 (b) Additional Annual Retainers for Committee Membership: 

 

					
	 Audit Committee Chairperson:
	  	$	15,000	 
	 Audit Committee member:
	  	$	7,500	 
	 Compensation Committee Chairperson:
	  	$	10,000	 
	 Compensation Committee member:
	  	$	5,000	 
	 Nominating and Corporate Governance Committee Chairperson:
	  	$	8,000	 
	 Nominating and Corporate Governance Committee member:
	  	$	4,000	 
	 Research and Development Committee Chairperson:
	  	$	8,000	 
	 Research and Development Committee member:
	  	$	4,000	 

 (c) Additional Retainer for Non-Executive Chairperson or Lead
Director of the Board of Directors: $30,000 to acknowledge the additional responsibilities and time commitment of the Chairperson role, or in the absence of a Chairperson, of the Outside Director designated Lead Director. 

 

	 	II.	 Equity Retainers 

All grants of equity retainer awards to Outside Directors pursuant to this Policy will be automatic and nondiscretionary and will be made in accordance with
the following provisions: 

 (a) Value. For purposes of this Policy, “Value” means with respect
to (i) any award of stock options the grant date fair value of the option (i.e., Black-Scholes Value) determined in accordance with the reasonable assumptions and methodologies employed by the Company for calculating the fair value of options
under ASC 718; and (ii) any award of restricted stock and restricted stock units the product of (A) the closing market price on The Nasdaq Global Market (or such other market on which the Company’s Common Stock is then
principally listed) of one share of the Company’s Common Stock on the effective date of grant, or if no closing price is reported for such date, the closing price on the last date preceding such date for which a closing price is reported and
(B) the aggregate number of shares pursuant to such award. 
 (b) Sale Event Acceleration. In the event of a Sale Event
(as defined in the Company’s 2020 Stock Option and Incentive Plan (the “2020 Plan”)), the equity retainer awards granted to Outside Directors pursuant to this Policy shall become 100% vested and exercisable. 

(c) Initial Grant. Upon initial election or appointment to the Board of Directors, each new Outside Director will receive an initial, one-time grant of a non-statutory stock option to purchase 26,573 shares of the Company’s Common Stock (the “Initial Grant”) with an exercise price per
share equal to the closing price of a share of the Company’s Common Stock on the date of grant and a term of ten years, that vests substantially equal monthly installments over three years beginning on the grant date; provided, however, that
all vesting ceases if the director resigns from our Board of Directors or otherwise ceases to serve as a director, unless the Board of Directors determines that the circumstances warrant continuation of vesting. If any Initial Grant to an Outside
Director is to become effective as of the date of the Company’s initial public offering, it shall have an exercise price per share equal to the per share “price to the public” (or equivalent) set forth on the cover page for the final
prospectus relating to the Company’s initial public offering. This Initial Grant applies to Outside Directors who are first elected or appointed to, and who were not previously serving on, the Board of Directors effective as of or subsequent to
the Company’s initial public offering. 
 (d) Annual Grant. On the date of the Company’s Annual Meeting of Stockholders,
each Outside Director who will continue as a member of the Board of Directors following such Annual Meeting of Stockholders will receive a grant of a non-statutory stock option to purchase 13,286 shares of the
Company’s Common Stock (the “Annual Grant”) on the date of such Annual Meeting with an exercise price per share equal to the closing price of a share of the Company’s Common Stock on the date of grant and a term of ten
years, with 25% of the Annual Grant vesting on the first day of each calendar quarter following the grant date for three calendar quarters and the remaining 25% of the Annual Grant vesting on the earlier of (i) the one-year anniversary of the grant date or (ii) the next Annual Meeting of Stockholders; provided, however, that all vesting ceases if the director resigns from our Board of Directors or otherwise ceases
to serve as a director, unless the Board of Directors determines that the circumstances warrant continuation of vesting. 
  

	 	III.	 Expenses 

The Company will reimburse all reasonable out-of-pocket expenses incurred by
Outside Directors in attending meetings of the Board of Directors or any Committee thereof. 

	 	IV.	 Maximum Annual Compensation 

The aggregate amount of compensation, including both equity compensation and cash compensation, paid to any Outside Director in a calendar year period shall
not exceed (i) $1,000,000 in the first calendar year an individual becomes an Outside Director and (ii) $750,000 in any other year (or in each case, such other limits as may be set forth in Section 3(b) of the 2020 Plan or any similar provision
of a successor plan). For this purpose, the “amount” of equity compensation paid in a calendar year shall be determined based on the grant date fair value thereof, as determined in accordance with ASC 718 or its successor provision, but
excluding the impact of estimated forfeitures related to service-based vesting conditions. 
 Date Policy Approved: May 21, 2020Exhibit

EXHIBIT 10.1

EIGHTH AMENDING AGREEMENT 
(First Insurance Funding of Canada Inc.)
This Eighth Amending Agreement made as of May 20, 2020.
B E T W E E N:
FIRST INSURANCE FUNDING OF CANADA INC. 
 
(hereinafter referred to as the “Seller” or the “Servicer”)
- and -
CIBC MELLON TRUST COMPANY, in its capacity as trustee of PLAZA TRUST, 
 
(hereinafter referred to as the “Purchaser”)
RECITALS:
WHEREAS the parties hereto are parties to a receivables purchase agreement dated as of December 16, 2014 (as amended by amending agreements dated December 15, 2015, September 9, 2016, December 15, 2017, June 29, 2018, February 15, 2019, May 27, 2019 and January 15, 2020, the “RPA”);
AND WHEREAS the parties hereto have agreed to     further amend the RPA;
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
		
	1.
	Amendments

		
	(a)
	The definition of “Facility Limit” in Section 1.1 of the RPA is amended by deleting the reference to “$320,000,000” in such definition and replacing it with “$420,000,000”.

		
	2.
	General

		
	(a)
	This Eighth Amending Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

		
	(b)
	This Eighth Amending Agreement shall be binding upon and enure to the benefit of the parties hereto and their respective successors and permitted assigns.  

		
	(c)
	This Eighth Amending Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which, when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.

[signature page follows]

IN WITNESS WHEREOF the parties have caused this Eighth Amending Agreement to be executed by their respective duly authorized officers as of the date first above written.
	
				
	 
	 
	FIRST INSURANCE FUNDING OF CANADA INC. 

	By:
	/s/John Martin

	 
	Name:   John Martin

	 
	Title:   SVP Finance

	 
	 

	By:
	/s/Stuart Bruce

	 
	Name:   Stuart Bruce

	 
	Title:   CEO

	
				
	 
	 
	CIBC MELLON TRUST COMPANY, in its capacity as trustee of PLAZA TRUST, by its Financial Services Agent, ROYAL BANK OF CANADA

	By:
	/s/Nur Khan

	 
	Name:   Nur Khan

	 
	Title:   Authorized Signatory

	 
	 

	By:
	/s/Ian Benaiah

	 
	Name:   Ian Benaiah

	 
	Title:   Authorized SignatoryExhibit

EXHIBIT 10.2

Performance Guarantee Confirmation
Reference is made to a Performance Guarantee dated as of December 16, 2014 made by the undersigned in favour of the Purchaser (the “Performance Guarantee”).  The undersigned acknowledges and confirms that the performance guarantee remains in full force and effect notwithstanding the entering into of this eighth amendment.   
Dated as of the 20th day of May, 2020.

	
			
	 
	WINTRUST FINANCIAL CORPORATION

	By:
	/s/David A. Dykstra

	 
	Name:   David A. Dykstra

	 
	Title:   Vice Chairman and COO

	 
	 

	By:
	/s/Kathleen M. Boege

	 
	Name:   Kathleen M. Boege

	 
	Title:   EVP, General Counsel and Corp. Secretary

Signature Page to Eighth Amending AgreementExhibit

EXHIBIT 10.3

PLAZA TRUST 
c/o Royal Bank of Canada 
200 Bay Street, Royal Bank Plaza 
2nd Floor, North Tower 
Toronto, ON, M5J 2W7

May 20, 2020

First Insurance Funding of Canada Inc.
 
c/o Wintrust Financial Corporation
 
9700 West Higgins Road, Suite 800
 
Rosemont, IL  60018
Attention:    Mr. David Dykstra, Vice Chairman and Chief Operating Officer
Dear Sirs:
Receivables Purchase Agreement dated as of December 16, 2014 as amended by amending agreements dated December 15, 2015, September 9, 2016, December 15, 2017, June 29, 2018, February 15, 2019, May 27, 2019, January 15, 2020 and May 20, 2020 (as amended, supplemented, modified, restated or replaced from time to time, the “RPA”) between First Insurance Funding of Canada Inc. (the “Seller”) and Plaza Trust (the “Purchaser”)
All capitalized terms used but not defined herein shall have the meanings given to them in the RPA.  This letter agreement is the Fee Letter under the RPA and replaces the fee letter dated January 15, 2020.  For good and valuable consideration, the Seller and the Purchaser hereby agree as follows:
		
	1.
	Funding Cost Rate.  The “Funding Cost Rate” in respect of each day during a Settlement Period shall be the weighted average (weighted based on the relative portions of the Aggregate Net Investment funded) of the following rates:

		
	(a)
	with respect to that portion of the Aggregate Net Investment funded in a multi-seller conduit through the issuance of Commercial Paper, a rate equal to the CP Rate plus 0.82%; 

		
	(b)
	with respect to that portion of the Aggregate Net Investment funded in a multi-seller conduit other than through the issuance of Commercial Paper, a rate equal to the Prime Rate; and

		
	(c)
	with respect to that portion of the Aggregate Net Investment funded not in a multi-seller conduit, a rate equal to CDOR on such day plus 1.00%;

provided, on each day where a Termination Event has occurred and is continuing, the Funding Cost Rate will be the Prime Rate plus 2.00% per annum.
		
	2.
	CDOR.  For the purposes of paragraph 1(c) above, “CDOR” means, on any day the average rate which appears on the display designated as page “CDOR” for a one month period on the Reuters Monitor Money Rate Service (or such other page as may replace page “CDOR” on that service for the purpose of displaying bankers’ acceptance rates or as may be used to display average rates, any such replacement page to be acceptable to the Purchaser, acting reasonably) at or about 10:30 a.m. (Toronto time), or so soon thereafter as is practicable, on such day (or the prior Business Day if such day is not a Business Day), as determined by the Purchaser and reported to the Seller. If such average rate does not appear on such page, but such rates for particular financial institutions appear on such page unaveraged, the rate shall be determined on such day (or the prior Business Day if such day is not a Business Day) using such rates displayed on such page in the same manner as such average rate currently is determined on such page. If such rate or rates do not appear on such page, the rate shall be the bid rate quoted by the principal Toronto office of RBC as of 10:30 a.m. (Toronto time) on such day (or the prior Business Day if such day is not a Business Day) for the purchase of one month bankers’ acceptances issued by it.

		
	3.
	CP Rate. For the purposes of 1(a) above, “CP Rate” means, for each day during a Settlement Period, the weighted average annual rate of interest applicable to all Commercial Paper (other than subordinated Commercial Paper) outstanding during such Settlement Period; provided that (x) any such Commercial Paper may be issued in either United States dollars or Canadian dollars with the appropriate market rate currency swap agreements being entered into to match such issuance to the funding requirements of the Purchaser, and (y) the weighted average annual rate of interest at which such Commercial Paper is issued in respect of each day during a Settlement Period shall reflect any costs incurred by the Purchaser in connection with any such market rate currency swap agreements and any cost amounts payable to holders of such Commercial Paper in connection with any redemptions or repurchases of such Commercial Paper.  

		
	4.
	Notice.  The Purchaser shall provide to the Seller at least 1 Business Day before each Reporting Date, a report as to the Funding Cost Rate and the Funding Costs in respect of the related Settlement Period.  For the purposes of preparing such report and completing the settlements on the related Settlement Date, the Purchaser will assume that the Funding Cost Rate remains constant during the period from the day of delivery of such report to the last day of the related Settlement Period (a “stub period”). To the extent the actual Funding Cost Rate for each day during a stub period is different than the assumed Funding Cost Rate during the stub period, an appropriate adjustment to the Funding Costs for the following Settlement Period will be made, the details of which will be included in the report under this section 4 for that Settlement Period.        

		
	5.
	Non-Utilization Fee.  The Seller shall pay to the Purchaser on each Settlement Date a non-utilization fee equal to the sum of the amounts calculated for each day during the Settlement Period ending immediately prior to such Settlement Date which is equal to (x) 0.375%, multiplied by (y) the amount, if any, by which the Facility Limit exceeds the Aggregate Net Investment on such day and divided by (z) 365.  

		
	6.
	Renewal Fee.  The Seller shall pay to the Agent, for its sole account, on the date hereof, a fully-earned and non-refundable renewal fee equal to $100,000.  

This Fee Letter shall be construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.  This Fee Letter may be executed in counterparts, each of which shall be deemed to be an original and which together shall constitute one and the same agreement.  This Fee Letter may be executed and delivered by facsimile or other electronic transmission of a manually signed counterpart. 
[The remainder of this page intentionally left blank]

Yours truly,
	
				
	 
	 
	CIBC MELLON TRUST COMPANY, in its capacity as trustee of PLAZA TRUST, by its Financial Services Agent, ROYAL BANK OF CANADA

	By:
	/s/Nur Khan

	 
	Name:   Nur Khan

	 
	Title:   Authorized Signatory

	 
	 

	By:
	/s/Ian Benaiah

	 
	 
	Name:   Ian Benaiah

	 
	 
	Title:   Authorized Signatory

Agreed and accepted to by the undersigned as of the 20th day of May, 2020.
	
				
	FIRST INSURANCE FUNDING OF CANADA INC. 

	 
	 

	By:
	/s/John Martin

	 
	Name:   John Martin

	 
	Title:   SVP Finance

	 
	 

	By:
	/s/Stuart Bruce

	 
	Name:   Stuart Bruce
	 

	 
	Title:   CEO

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