Document:

EX-10.19

 Exhibit 10.19 
  

 
 [*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed
separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
 ABANDONMENT
AGREEMENT 
 hereinafter (“Agreement”) 

made effective as of February 28th 2014 (“ Effective Date”). 

This Agreement, is entered into on the Effective Date by and between: 

 

	(1)	ZEALAND PHARMA A/S, a corporation organized and existing under the law of Denmark and having its registered office at Smedeland 36, DK-2600 Glostrup, Denmark (“Zealand”); and 

 

	(2)	PROTAGONIST PTY. LTD., a company organized and existing under the laws of Australia and having its registered office at 306 Carmody Road, St Lucia, Brisbane Qld 4072, Australia (“Protagonist Pty. Ltd.”)
; and 

  

	(3)	PROTAGONIST THERAPEUTICS, INC., a Delaware corporation having its principal place of business 521 Cottonwood Dr., Suite A, Milipitas, Ca95035-7404 (“Protagonist Therapeutics” and together with
Protagonist Pty. Ltd., collectively, “Protagonist,”) 

 (Collectively the “Parties” and each a
“Party”). 
 WHEREAS, the Parties are Parties to that certain Research Collaboration and License Agreement dated as of
June 16, 2012 as amended by Agreement on addition of Additional Collaboration Program, dated 16th September 2013 (the “Collaboration Agreement”); 

WHEREAS, the Collaboration Agreement governs the collaboration between Zealand and Protagonist in the field of identifying and
characterize DRPs that bind to and have activity on a target selected by Zealand and approved by Protagonist in order that Zealand can further develop such DRPs to become or to be used in the development of therapeutics for the treatment of human
and animal diseases; 
 WHEREAS, Zealand has on 30th October 2013 sent a formal notice to Protagonist of its decision to Abandon
the Collaboration Program and Protagonist has elected to assume the responsibility for development and/or commercialization of specific Selected DRP’s, Therapeutic Peptides or Products in the Abandoned Collaboration Program; and 

WHEREAS, the Parties wish to clarify certain matters relating to the Abandoned Collaboration Program. 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained, the Parties agree as follows:

 1. Capitalized Terms. Unless otherwise defined herein, any capitalized terms used in this Agreement shall have the meanings ascribed to them in
the Collaboration Agreement. 

  
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 2. Acknowledgements. 

(a) Zealand and Protagonist acknowledge and agree that (i) there are no Reimbursable Costs and (ii) Protagonist has accepted that
there are no Reimbursable Costs and (iii) notwithstanding the terms of the Collaboration Agreement, that Zealand and Protagonist are obligated to perform the obligations set forth in Sections 13.2, 13.3, 13.5 and 13.8. 

(b) Zealand acknowledges and agrees that other than the payment obligations set forth in Section 13.8, Protagonist has no obligations
under the Collaboration Agreement with respect to the development, manufacture, commercialization or other exploitation of Selected DRPs, Therapeutic Products or Products included in the Abandoned Collaboration Program (collectively, the
“Collaboration Assets”). Without limiting the generality of the foregoing, Protagonist may use any level of effort, or no effort, to develop, manufacture, commercialize or otherwise exploit the Collaboration Assets. 

3. Fulfillment of Information Transfer. Zealand’s obligation to provide Protagonist with information pertaining to the Abandoned Collaboration
Program as laid out in Sections 13.2-13.5 of the Collaboration Agreement shall be fulfilled by Zealand no later than 1st June 2014. The specific information to be provided by Zealand is
specified in Appendix A to this Agreement. Protagonist shall have a right to require from Zealand such additional information pertaining specifically to the Abandoned Collaboration Program which is necessary or useful for facilitation of further
development of the Abandoned Collaboration Program. This right will expire on 20th September 2014. Should Protagonist secure financing for development of the Abandoned Collaboration Program
Zealand will, notwithstanding the expiration on 20th September 2014 of Protagonist’s right to require additional information, be prepared but not obligated to provide such further
information necessary in order for Protagonist to initiate further development of the Abandoned Collaboration Program. 
 4. Conflicts. In the event
of any conflicts between the terms of the Collaboration Agreement and this Agreement, the terms of this Agreement shall control. 
 5. Counterparts.
This Agreement may be executed in any number of counterparts, each of which, when executed, shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures provided by facsimile transmission or in AdobeTM Portable Document Format (PDF) sent by electronic mail shall be deemed to be original signatures. 

IN WITNESS WHEREOF, the Parties have signed this Abandonment Agreement as of the Effective Date. 

[SIGNATURE PAGE FOLLOW] 

  
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[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

 

 
  
  

			
	ZEALAND PHARMA A/S
		
	By:	 	/s/ Arvind M. Hundal
	Name:	 	Arvind M. Hundal, PhD
	Title:	 	Senior Vice President CBO

  

			
	PROTAGONIST PTY. LTD
		
	By:	 	/s/ Dinesh V. Patel
	Name:	 	Dinesh V. Patel
	Title:	 	President & CEO

  

			
	PROTAGONIST THERAPEUTICS, INC.
		
	By:	 	/s/ Dinesh V. Patel
	Name:	 	Dinesh V. Patel
	Title:	 	President & CEO

  
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[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

 

 
  
 Appendix A: 

List of information to be provided to Protagonist by Zealand 

[THIS PAGE IS INTENTIALLY LEFT BLANK] 

  
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[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

 Appendix A: List of information to be provided by Zealand 

 

							
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[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
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[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.srcl-ex101_483.htm

Exhibit 10.1

Stericycle, Inc.
Plan of Compensation for Outside Directors 

 

		
	
 
	
Annual Compensation

	
Annual Compensation
	
$125,000, payable in 12 equal monthly installments if payment in cash is elected (see “Minimum Ownership Requirements—Eligibility for Cash Payment,” below).

 

This amount (a director’s “Annual Retainer”) is subject to adjustment as provided in the immediately following paragraph and will be reviewed annually and updated from time to time on the basis of formal or informal surveys of outside director compensation as determined by the Compensation Committee.  

 

If the annual meeting of stockholders (the “Annual Meeting”) in a given year occurs more than 10 days after or prior to the anniversary date of the prior year’s Annual Meeting, an incumbent director’s Annual Retainer will be increased or decreased, as the case may be, on a pro rata basis.  The pro rata adjustment will be added to or subtracted from the Annual Retainer, as applicable, based on a fraction, the numerator of which is the number of days the Annual Meeting occurs after or prior to the anniversary date of the prior year’s Annual Meeting and the denominator of which is 365.  For example, if the Annual Meeting for a given year occurs on May 21 and the prior year’s Annual Meeting occurred on May 1, an incumbent director’s Annual Retainer upon re-election at the Annual Meeting will be increased by an amount equal to $6,849.32 (20 days divided by 365 days, multiplied by $125,000) for a total Annual Retainer of $131,849.32.  The amount of the Annual Retainer as so adjusted shall be used to determine the conversion of the director’s stock option and restricted stock unit (RSU) awards in accordance with the terms of this Plan of Compensation for Outside Directors (the “Plan”).

 

	
Conversion to Option and RSU Award
	
Subject to the election by an eligible director to receive payment of his or her Annual Retainer in cash, the normal form of payment of a director’s Annual Retainer will be (i) a stock option reflecting the conversion of 75% of the director’s Annual Retainer ($93,750) and (ii) an RSU award reflecting the conversion of 25% of the director’s Annual Retainer ($31,250).

 

	
Number of Option Shares
	
The option will be for a number of shares equal to the quotient obtained by dividing (i) 5 times the amount of the director’s Annual Retainer to be converted into an option ($93,750) 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 (the “measurement period average closing price”).

 

	
Number of RSUs
	
The RSU award will be for a number of shares equal to the quotient obtained by dividing (i) 2 times the amount of the director’s Annual Retainer to be converted into an RSU award ($31,250) by (ii) the measurement period average closing price.

 

	
Grant Date and Exercise Price
	
The option and RSU award will be granted on the date of the Annual Meeting (the “grant date”) upon a director’s election or re-election to the Board at the Annual Meeting each year.

 

The exercise price of the option will be the closing price on the grant date.

 

		
	
Vesting
	
The option and RSU award will both fully vest on the first anniversary of the grant date.

 

If a director dies, or if a director resigns for a good reason (in the judgment of the Board of Directors), a pro rata portion of the director’s option and RSU award will vest as of the date of the director’s death or resignation.

 

This portion will be determined by multiplying the director’s option shares and RSUs by a fraction, the numerator of which is the number of months (including partial months) elapsed from the grant date to the date of the director’s death or resignation and the denominator of which is 12.

 

	
 
	
Minimum Ownership Requirements

	
Minimum Ownership
	
All directors will be required to hold a minimum position in Stericycle stock.

For a director with less than five years of service, the director must have a position equal to three times the director’s Annual Retainer, or $375,000.

For a director with five or more years of service, the director must have a position equal to five times the director’s Annual Retainer, or $625,000.

 

	
Measurement
	
A director’s ownership position will be measured by the value of the Stericycle stock that he or she directly or indirectly owns, the value of the vested and unvested RSUs that he or she holds, and the in-the-money value of the vested and unvested Stericycle stock options that he or she holds.

 

	
Eligibility for Cash Payment
	
A director who satisfies the minimum ownership requirement may elect to receive all or a portion his or her Annual Retainer in cash. The director’s election shall be made by written or electronic (email) notice to the Chairman of the Compensation Committee or to Stericycle’s General Counsel at least 10 days prior to the annual meeting of stockholders at which the director is standing for election or re-election.

 

A director who does not satisfy the applicable minimum ownership requirement must receive his or her Annual Retainer in the normal form of payment as a stock option and RSU award.

 

	
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
	
If the Chairman of the Board is an independent director under NASDAQ listing rules, the Chairman will be paid a fee for his or her services as Chairman in an amount to be determined by the Compensation Committee.

 

If the Chairman of the Board is not an independent director, no additional fees or compensation will be paid to the Chairman for his or her services as Chairman.

 

		
	
Audit Committee
	
The Chairman of the Audit Committee will be paid a fee of $10,000 per year for his or her services as Chairman.

 

	
Compensation Committee
	
The Chairman of the Compensation Committee will be paid a fee of $5,000 per year for his or her services as Chairman.

 

	
Payment of Chairmen’s Fees
	
The fees payable to the Chairman of the Board (if an independent director), Chairman of the Audit Committee and Chairman of the Compensation Committee will be paid by adding each Chairman’s fee to and treating it as a part of his or her Annual Retainer.

The Chairmen’s fees will be reviewed annually and updated from time to time on the basis of formal or informal surveys of outside director compensation as determined by the Compensation Committee.

	
 
	
Option Grants and RSU Awards to New Director

	
Joining Grant
	
A new director will be granted a stock option and an RSU award upon joining the Board and a second stock option and second RSU award for his or her annual compensation for service as a director.

 

The first option and RSU award, for joining the Board, will reflect the conversion of two different multiples of a director’s Annual Retainer: (i) the option will be for a number of shares equal to the quotient obtained by dividing (A) 10 times 75% of the Annual Retainer by (B) the average closing price of Stericycle stock during the 12-month period ending on the last trading day prior to the director’s election to the Board (the “new director measurement period average closing price”); and (ii) the RSU award shall be for a number of shares equal to the quotient obtained by dividing (A) 4 times 25% of the Annual Retainer by (B) the new director measurement period average closing price.

 

The option and RSU award shall be granted on the day of the new 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.

 

One-fifth of the option and one-fifth of the RSU award will vest on each of the first five anniversaries of the director’s election to the Board.

 

		
	
Annual Grant
	
The new director will also receive a second option and second RSU award reflecting the director’s annual compensation for service as a director.

 

If the new director is elected at an Annual Meeting, the option and RSU award will be as previously described (see “Annual Compensation” and “Conversion to Option and RSU Award,” above).

 

If the new director is elected other than at an annual meeting: (i) the second option will be for a number of shares equal to a pro rata portion of the quotient obtained by dividing (A) 5 times 75% of the director’s Annual Retainer by (B) the new director measurement period average closing price; and (ii) the second RSU award will be for a number of shares equal to a pro rata portion of the quotient obtained by dividing (A) 2 times 25% of the director’s Annual Retainer by (B) the new director measurement period average closing price.

The option and RSU award shall be granted on the day of the new 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. The option and RSU award will both fully vest 

on the first anniversary of the prior Annual Meeting.

 

The pro rata portion means a fraction, the numerator of which is the number of months (including partial months) until the next Annual Meeting 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 amendment and restatement of the Plan shall be effective as of the date first set forth above when approved by the full Board of Directors.

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