Document:

srcl-ex1025_1620.htm

	

	
EXHIBIT 10.25

Program Year 2017

BONUS CONVERSION PROGRAM

Summary of Program Terms

Program Objectives

	
•
	
To increase the opportunity for employee ownership of Stericycle common stock  (NASDAQ Symbol: SRCL)

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

Program Overview

The Bonus Conversion Program (BCP) provides you with an opportunity to defer current taxation into the future and to increase your ownership of Stericycle stock. The BCP allows you to receive vested Stericycle non-qualified stock option(s) in lieu of all or a portion of any 2017 Annual Incentive Plan (AIP) bonus that Stericycle otherwise would pay you.

If you elect to participate for the 2017 Program Year, you will receive a vested option during the first quarter of 2017 to purchase $5 or more worth of Stericycle stock for every $1 of your AIP bonus for 2017 that you elected to forgo. The number of option shares will be determined by the dollar amount that you elected to forgo multiplied by 5 and then divided by the average closing price of Stericycle stock during 2017 (determined on December 31st 2017).  The exercise price per share of the option will be the closing price of the stock on the date of the option grant which is the same as the payout date of the bonus. For example, if under the BCP you elect to forgo $5,000 of your annual bonus for 2017, you will receive a vested option to purchase, at the option exercise price, a number of shares equal to $25,000 divided by the average closing price of Stericycle stock during 2017 (or, if lower, the closing price on the date of the option grant) rounded to the nearest whole share.

The BCP 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 BCP is designed to provide a $5-for-$1 replacement ratio or premium for risk so your participation means trading certain cash for uncertain investment gain. With the $5-for-$1 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 full amount of your cash bonus forfeited or match the earnings you could have received under an alternative investment.

							
	
December 1, 2016 to December 15, 2016
	
 
	
January 1, 2017 – December 31, 2017
	
 
	
January 1, 2017 – 
March 3, 2017
	
 
	
March 4, 2018 (no later than March 15, 2018)

	
- Bonus Conversion program (BCP) election period open for 2017 AIP plan year

 

-Forms must be returned by December 15, 2016

 

-Every eligible participant must return a form, even if declining to participate

 
	

	
-Plan Year for the Annual Incentive Plan (AIP)

 

-NOTE: AIP payouts in March 2017 for the 2016 bonus plan year are based on BCP elections made in 2015 and are NOT subject to the BCP election made in December of 2016
	

	
-2017 average stock price determined after market close on 12/31/2017

 

-2017 AIP achievement levels and payouts determined and finalized (to be paid March 2018)

-2017 AIP payouts reduced and set aside based on the BCP election made in December 2016. Funds  are converted to 5:1 to stock options based on the 2017 average stock price

 
	

	
- AIP Payout date for 2017 plan year. 

-Stock Options are issued on the March 2018 AIP payout date to all 2017 BCP participants who made an election by December 15, 2016 

 

-Stock Options are issued at the closing strike price on AIP payout date

 

-Participants will be provided notification within 2-3 weeks of this date confirming the options are available to accept within E*Trade

 

 

 

	
	
ENROLLMENT

	
•
	
THE ELECTION FORM IS ATTACHED SEPARATELY AND 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 BCP IS NOT A STERICYCLE PROMISE THAT YOU WILL RECEIVE A BONUS OF ANY PARTICULAR AMOUNT OR ANY BONUS AT ALL.  YOUR ELECTION TO PARTICIPATE IS SUBJECT TO APPROVAL OF THE BCP FOR THE 2017 PROGRAM YEAR.  

	
•
	
An election to participate in the BCP must be made by the election deadline (as noted in your invitation e-mail) to avoid constructive receipt and securities law restrictions. An election is irrevocable and cannot be changed by the participant after the election deadline.  

	
•
	
ELECTION DEADLINE DATE IS:  December 15, 2016

	
PROGRAM SUMMARY

	
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Participants may elect to convert up to 100% of their Annual Incentive Plan (AIP) earned for 2017 (minimum of $1,000 in the aggregate) into a Stericycle non-qualified stock option.

	
•
	
 Participants vest in the stock options immediately.

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

	
•
	
Replacement ratio, or premium for risk, is $5 for options to purchase Stericycle stock for every $1 of cash bonus forgone.

 

	
	
PROGRAM ELIGIBILITY

	
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Eligibility: US based Grade level S11 and above as approved by the Board of Directors.  

	
•
	
New employees who start after September 30, 2016, will not be eligible to participate in the BCP for 2017.

	
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If your employment status changes during the Program Year (for example, due to a transfer to a sales commission position), your election to participate in the BCP for such Program Year will only apply to the AIP bonus that you actually receive.  Any sales commissions or other bonus payments that you may receive due to your ongoing employment for the remainder of such Program Year will be disregarded for purposes of your election under the BCP.

 

	
	
PROGRAM CONVERSION CALCULATION DETAILS

	
•
	
The number of option shares will be equal to (a) 5 times the amount that a participant elected to forgo divided by (b) the average closing price of Stericycle stock during 2017 (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 which is the same as the payout date as the annual AIP cash bonus.

	
 
	
•
	
Participants forgo all or a portion of their cash bonus (before any withholding tax 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.

	
 
	
•
	
If you elect to participate in the BCP, you acknowledge that any tax liabilities, investment outcomes, or other consequences resulting from such election (and any stock options you may receive) will be the sole responsibility of, and will be borne entirely by, you.  Stericycle gives no assurance that such consequences will not occur and specifically assumes no responsibility for any such consequences.  You are therefore encouraged to consult your own tax advisor before making an election to participant in the BCP.

 

	
	
TERMINATION OF EMPLOYMENT

	
•
	
If a participant’s employment terminates before receiving a stock option for his or her converted bonus/commission (s), the 

2

 

		
participant’s election will be canceled as of his or her termination date and all amounts previously withheld will be paid in cash.

	
•
	
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.

	
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Neither the BCP nor any Option Agreement shall confer upon you any right with respect to continuation of your employment with Stericycle (or any of its subsidiaries or affiliates), nor shall it interfere in any way with Stericycle’s right to terminate your employment at any time, with or without cause. 

 

	
	
PROGRAM ADMINISTRATION

 

	
•
	
If you elect to participate in this BCP you will receive information about your stock option account after the grant date from E* Trade who is the Stock Administration vendor for Stericycle.

	
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Any stock options you elect to receive will be issued under one or more available Stericycle, Inc. Incentive Stock Plans and the terms of those plan(s) and the related Option Agreement(s) will apply to your stock options received under the BCP.   Notwithstanding the foregoing, Stericycle will not be obligated, and will have no liability for any failure, to issue or deliver any stock options unless such issuance or delivery complies with all applicable laws (with such compliance determined solely by Stericycle in consultation with its legal counsel).

	
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E*TRADE Customer Service Number 800-838-0908 for all stock account related questions.

	
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Stericycle Program Administrator:  Corporate Compensation, Team Member Experience-HR, Northbrook, Illinois.

	
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Please send all questions via email at Human Resources-Compensation at HRCompensation@Stericycle.com

3srcl-ex1029_1083.htm

EXHIBIT 10.29

Indemnification Agreement

 

([name])

 

 

This Indemnification Agreement (this “Agreement”) is entered into by Stericycle, Inc., a Delaware corporation (“Stericycle”), and [name] (the “Indemnitee”), as of [date].

Background:

 

	
A.
	
The potential liabilities and cost of defense of lawsuits filed against corporate officers, directors, employees and agents in connection with the performance of their duties pose a significant deterrent to experienced and capable individuals who might otherwise be willing to serve or to continue to serve as officers, directors, employees or agents of Stericycle.

	
B.
	
As an inducement to the Indemnitee to serve or to continue to serve as an officer, director, employee or agent of Stericycle, Stericycle desires to provide the lndemnitee with specific contractual assurances of indemnification protection to the fullest extent permitted by law.

Now, therefore, in consideration of their mutual promises, Stericycle and the Indemnitee agree as follows:

	
1.
	
Definitions

Certain capitalized terms used in this Agreement are defined in the attached Exhibit A.

	
2.
	
Indemnification

Stericycle shall indemnify the lndemnitee against all Judgments and Expenses that the lndemnitee suffers or incurs in connection with any pending, completed or threatened Proceeding (other than a Derivative Proceeding) to which the Indemnitee is or was or is threatened to be made a party, or in which the lndemnitee is or was or is threatened to be made a witness or other participant, by reason of any action or inaction by the lndemnitee while providing Covered Service, whether before or after the date of this Agreement:

	
 
	
(a)
	
if the Indemnitee acted in good faith and in a manner that he or she reasonably believed to be in, or not opposed to, Stericycle’s best interests; or

	
 
	
(b)
	
in the case of a criminal Proceeding, if the lndemnitee did not have reasonable cause to believe that his or her conduct was unlawful.

The termination of any Proceeding by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not of itself create a presumption that the Indemnitee did not act in good faith and in a manner that he or she reasonably believed to be in, or not opposed to, Stericycle’s best interests or, in the case of a criminal Proceeding, that the Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

 

	
3.
	
Derivative Proceedings

Stericycle shall indemnify the Indemnitee against all Expenses that the Indemnitee suffers or incurs in connection with the defense or settlement of any pending, completed or threatened Derivative Proceeding to which the Indemnitee is or was or is threatened to be made a party, or in which the Indemnitee is or was or is threatened to be made a witness or other participant, by reason of any action or inaction by the lndemnitee while providing Covered Service, whether before or after the date of this Agreement:

	
 
	
(a)
	
if the Indemnitee acted in good faith and in a manner that he or she reasonably believed to be in, or not opposed to, Stericycle’s best interests; and

	
 
	
(b)
	
in addition, in the case of any claim, issue or matter as to which the Indemnitee has been adjudged liable to Stericycle, if (and only to the extent that) the court in which the Derivative Proceeding was brought determines upon application that despite the adjudication of liability, but in view of all of the circumstances of the case, the Indemnitee is fairly and reasonably entitled to indemnification for those Expenses that the court considers proper.

	
4.
	
Advances

Upon the Indemnitee’s written request, Stericycle shall advance the Expenses incurred by the Indemnitee in defending any Proceeding or Derivative Proceeding if the Indemnitee provides Stericycle with the Indemnitee’s written undertaking to repay the amounts advanced, without interest, if it is ultimately determined that the Indemnitee is not entitled to indemnification under this Agreement. No security shall be required on the Indemnitee’s undertaking.

If the lndemnitee provides this undertaking, Stericycle’s obligation to advance the Expenses incurred by the Indemnitee shall continue during the pendency of any action by the lndemnitee under Paragraph 6 to enforce his or her rights under this Agreement, notwithstanding any determination under Paragraph 5 that indemnification is not proper because the Indemnitee failed to meet the applicable standard of conduct.

	
5.
	
Procedures

Except as ordered by a court, indemnification under Paragraph 2 or 3 shall be made only as authorized in the specific case upon a determination that indemnification is proper under the circumstances because the lndemnitee has met the applicable standard of conduct. This determination shall be made as follows:

	
 
	
(a)
	
by the Board of Directors of Stericycle, by a majority vote of a quorum consisting of directors who were not parties to the Proceeding or Derivative Proceeding; or 

	
 
	
(b)
	
by a committee of such directors designated by a majority vote of such directors, even though less than a quorum; or

	
 
	
(c)
	
if such a quorum is not obtainable, or if it is obtainable but a quorum of disinterested directors directs, by independent legal counsel in a written opinion to the 

 

	
 
		
Board of Directors; or

	
 
	
(d)
	
by Stericycle’s stockholders.

	
6.
	
Right To Indemnification

The Indemnitee’s rights under this Agreement may be enforced by the Indemnitee in any court of competent jurisdiction. The burden of proving that indemnification is not appropriate shall be on Stericycle. Neither a determination under Paragraph 5 that indemnification is not proper, nor the fact that a determination has not yet been made, shall be a defense to the Indemnitee’s action to enforce his or her rights or create a presumption that the Indemnitee has not met the applicable standard of conduct. If and to the extent that the Indemnitee is successful in asserting his or her rights under this Agreement, Stericycle shall also indemnify the Indemnitee for his or her related Expenses.

	
7.
	
Expenses of Successful Defense

Regardless of any contrary determination under Paragraph 5, Stericycle shall indemnify the Indemnitee against all of his or her Expenses to the extent that the Indemnitee has been successful, on the merits or otherwise, in the defense of any Proceeding or Derivative Proceeding.

	
8.
	
Indemnification Not Exclusive

The rights to indemnification under this Agreement shall not be exclusive of any other rights that the Indemnitee may have under Stericycle’s certificate of incorporation or bylaws or under any agreement, vote of disinterested directors, vote of stockholders, or otherwise.

	
9.
	
Severability

If any provision of this Agreement is held invalid, illegal or unenforceable for any reason whatever, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected or impaired in any way, and to the fullest extent possible, the provisions of this Agreement shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

	
10.
	
Notice

The Indemnitee shall give Stericycle notice in writing as soon as reasonably practicable of any Proceeding against him or her for which indemnity will or could be sought under this Agreement. In addition, the Indemnitee shall provide Stericycle with such information and cooperation as it may reasonably require and as shall be within the Indemnitee’s power. Notice to Stericycle shall be directed to Stericycle, Inc., 28161 N. Keith Drive, Lake Forest, Illinois 60045 (or such other address as Stericycle shall designate in writing to the Indemnitee). Notice to the Indemnitee shall be directed to the address below the signature of the Indemnitee on this Agreement (or such other address as the Indemnitee shall designate in writing to Stericycle). Notices shall be deemed received three business days after the date postmarked, if sent by prepaid certified mail, return receipt requested, properly addressed or the next business day following dispatch by overnight courier service.

 

	
11.
	
Amendment

No amendment of this Agreement shall be effective unless it is in writing, makes specific reference to this Agreement and is signed by both Stericycle and the Indemnitee.

	
12.
	
Governing Law

This Agreement shall be governed by the laws of the State of Delaware.

	
13.
	
Counterparts

This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same original.

	
14.
	
Prior Agreement

Notwithstanding anything to the contrary in Paragraph 8, this Agreement supersedes and replaces any prior indemnification agreement between Stericycle and the Indemnitee.

	
15.
	
Binding Effect

This Agreement shall be binding on the successors and assigns of Stericycle (including the surviving corporation in the event of any merger to which Stericycle is a party), and shall inure to the benefit of the lndemnitee and his or her heirs and legal representatives. This Agreement shall continue in effect regardless of whether the Indemnitee continues to serve as an officer, director, employee or agent of Stericycle.

[signatures follow on the next page]

 

In witness, the parties have signed this Agreement.

 

Stericycle, Inc.

 

 

By

[name]

[title]

 

 

 

 

 

[name]

 

Address:

	
 
	

	
 

	
 
	

	
 

 

Exhibit A

 

Definitions

 

 

Covered Service means (i) service as a director, officer, employee, agent or fiduciary of Stericycle, any Subsidiary, or any employee benefit plan maintained by Stericycle or any Subsidiary and (ii) service at Stericycle’s request as a director, officer, employee, agent or fiduciary of any other corporation, partnership, joint venture, trust, enterprise or employee benefit plan.

Derivative Proceeding means a Proceeding by Stericycle or by one or more stockholders in its name and on its behalf.

Expenses means attorneys’ fees and other costs and expenses actually and reasonably incurred in connection with the investigation of, preparation for, defense of and appeal of any Proceeding to which the Indemnitee is or was or is threatened to be made a party, or in which the Indemnitee is or was or is threatened to be made a witness or other participant, by reason of any action or inaction by the Indemnitee while providing Covered Service.

Judgments means judgments, fines, penalties and amounts paid in settlement (if the settlement is approved in advance by Stericycle, whose approval shall not be unreasonably withheld), including related interest, assessments and charges.

Proceeding means any action, suit, proceeding or alternative dispute resolution procedure, whether civil, criminal, administrative or investigative in nature, and any hearing, investigation or inquiry that reasonably might be expected to lead to the initiation of any action, suit, proceeding or alternative dispute resolution procedure.

Subsidiary means any corporation, limited liability company, partnership, joint venture, trust or other entity in which, at the time of the Covered Service in question, Stericycle directly or indirectly held a majority of the outstanding equity interests.

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