Document:

srcl-ex1028_761.htm

EXHIBIT 10.28

Program Year 2018

BONUS CONVERSION PROGRAM

Summary of Program Terms – Annual Incentive Plan Participants

Program Objectives

 

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

	
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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 2018 Annual Incentive Plan (AIP) bonus that Stericycle otherwise would pay you.

If you elect to participate for the 2018 Program Year, you will receive a vested option during the first quarter of 2019 to purchase $4 or more worth of Stericycle stock for every $1 of your AIP bonus for 2018 that you elected to forgo. The number of option shares will be determined by the dollar amount that you elected to forgo multiplied by 4 and then divided by the average closing price of Stericycle stock during 2018 (determined on December 31st 2018).  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 2018, you will receive a vested option to purchase, at the option exercise price, a number of shares equal to $20,000 divided by the average closing price of Stericycle stock during 2018 (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 $4-for-$1 replacement ratio or premium for risk so your participation means trading certain cash for uncertain investment gain. With the $4-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, 2017 to December 15, 2017
	
 
	
January 1, 2018– December 31, 2018
	
 
	
January 1, 2019 – 
2019  payout date
	
 
	
No later than March 15, 2019

	
- Bonus Conversion program (BCP) election period open for 2018 AIP plan year

 

-Forms must be returned by December 15, 2017

 

-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 2019 for the 2018 bonus plan year are based on BCP elections made in 2017 
	

	
-2018 average stock price determined after market close on 12/31/2018

 

-2018 AIP achievement levels and payouts determined and finalized (to be paid March 2019)

-2018 AIP payouts reduced and set aside based on the BCP election made in December 2017. Funds  are converted to 4:1 to stock options based on the 2018 average stock price

 
	

	
- AIP Payout date for 2018 plan year

-Stock Options are issued on the March 2019 AIP payout date to all 2018 BCP participants who made an election by December 15, 2017

 

-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

 

	
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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 2018 PROGRAM YEAR.  

	
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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.  

	
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ELECTION DEADLINE DATE IS:  December 15, 2017

	
PROGRAM SUMMARY

 

	
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Participants may elect to convert up to 100% of their Annual Incentive Plan (AIP) earned for 2018 (minimum of $1,000) into a Stericycle non-qualified stock option.

	
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 Participants vest in the stock options immediately.

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

	
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Replacement ratio, or premium for risk, is $4 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.  

	
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New employees who start after September 30, 2017, will not be eligible to participate in the BCP for 2018.

	
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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

 

	
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The number of option shares will be equal to (a) 4 times the amount that a participant elected to forgo divided by (b) the average closing price of Stericycle stock during 2018 (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.

	
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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.

	
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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.

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TERMINATION OF EMPLOYMENT

 

	
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If a participant’s employment terminates before receiving a stock option for his or her converted bonus/commission (s), the participant’s election will be canceled as of his or her termination date and all amounts previously withheld will be paid in cash.

	
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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

 

	
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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, Human Resources, Northbrook, Illinois.

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

3srcl-ex1032_762.htm

EXHIBIT 10.32

Director RSU

2017

Director Restricted Stock Unit Award

(Stericycle, Inc. 2017 Long-Term Incentive Plan)

 

Participant:

 

Award Grant Date (“Grant Date”):  

 

Number of shares subject to this Award:

 

THIS RESTRICTED STOCK UNIT AGREEMENT (this “Award Agreement”), dated as of the Grant Date specified above, by and between Stericycle, Inc. (the “Company”) and the Participant, is entered into pursuant to the Stericycle, Inc. 2017 Long-Term Incentive Plan (as the same may be amended, restated, supplemented and otherwise modified from time to time, the “Plan”).  This Award Agreement is subject to the terms and conditions of the Plan.  

 

Terms of Award

1.Defined Terms.  All capitalized terms not otherwise defined in the text of this Award Agreement have the meanings attributed to them in the Plan.  

2.Grant of RSUs.  Subject to the terms and conditions of the Plan and this Award Agreement, the Company hereby grants to the Participant a Full Value Award under the Plan in the form of restricted stock units (“RSUs”).  The RSUs shall vest based on the Participant’s continued service with the Company as a Non-Employee Director, as described in Section 3.  Each RSU constitutes an unfunded and unsecured promise of the Company to deliver (or cause to be delivered) to the Participant a share of the Company’s common stock, par value $.01 per share (“Common Stock”), or its cash equivalent, subject to the terms and conditions of the Plan and this Award Agreement, and is not an actual share of Common Stock.  Prior to settlement, as described in Section 4, RSUs are only bookkeeping entries, either on the Company’s own records or on those of E*Trade (or any other record keeper that the Company may use in connection with the administration of the Plan), and the Participant shall not have any rights as a stockholder of the Company in respect of his or her RSUs. 

3.Vesting of RSUs.  

	
 
	
(a)
	
General Vesting Rules.  This Award shall vest on XXXX (the “Vesting Date”)] [on each of the [first through fifth] anniversaries of the Grant Date (each a “Vesting Date”)] provided that the Participant’s Termination Date has not occurred as of the applicable Vesting Date.  Subject to the terms and conditions of this Award Agreement, the actual number of RSUs that become earned and vested as of a Vesting Date are referred to as “Vested RSUs”.  All RSUs that become Vested RSUs on a Vesting Date shall be distributed to the Participant in accordance with Section 4.  Except as otherwise provided by the Committee or this Award Agreement, if the Participant’s Termination Date occurs for any reason prior to the applicable Vesting Date, then, as of the Participant’s Termination Date, all then unvested RSUs shall be cancelled and shall be forfeited, none of unvested RSUs shall become Vested RSUs and the Participant shall have no rights under or with respect any of the unvested RSUs.  

 

 

	
 
	
(b)
	
Special Rules for Death.  Notwithstanding the provisions of paragraph 3(a), if the Participant’s Termination Date occurs prior to a Vesting Date on account of the Participant’s death, then all of the then outstanding unvested RSUs shall immediately vest and the date of the Participant’s death shall be the “Vesting Date” for such RSUs for purposes of Section 4.

	
 
	
(c)
	
Change in Control.  This Award shall vest upon a Change in Control prior to the Vesting Date as provided by the Committee provided that the Participant’s Termination Date has not occurred as of the date of the Change in Control.

Settlement. The Participant shall be entitled to payment (whether in shares of Common Stock or the cash equivalent thereof) only with respect to Vested RSUs.  The settlement of the Vested RSUs shall occur within 45 days following the Vesting Date applicable to such Vested RSUs.  Settlement of the Vested RSUs shall be made, in the sole discretion of the Committee, in (a) the form of shares of Common Stock (with one share of Common Stock distributed for each Vested RSU and cash equal in value to any fractional Vested RSU) registered in the name of the Participant, (b) a lump sum cash payment equal to the Fair Market Value (determined as of the Vesting Date) of the number of shares of Common Stock determined under paragraph (a), or (c) a combination of the payment forms described in paragraphs (a) and (b).  Notwithstanding the foregoing, if settlement of the RSUs is deferred under the terms of the Stericycle, Inc. Directors’ Deferred Stock Plan or another deferred compensation plan of the Company (“Deferred Compensation Plan”), whether pursuant to the Participant’s election or otherwise, settlement of the Vested RSUs shall be made at the time and in the form determined under, and otherwise accordance with the terms of, the Deferred Compensation Plan.

4.Withholding. The delivery of shares of Common Stock or the payment of cash in settlement of the Award pursuant to Section 4 shall be conditioned upon the satisfaction of any applicable withholding tax obligation.

5.Transferability. This Award may not be transferred, assigned or pledged (whether by operation of law or otherwise), except as provided by will or the applicable laws of intestacy. The Award shall not be subject to execution, attachment or similar process.

6.Interpretation.  This Award 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 Grant Date shall adversely affect the Participant’s rights in respect of the Award without the Participant’s consent).  If there is a conflict or inconsistency between this Award and the Plan, the terms of the Plan shall control. The Committee’s interpretation of this Award and the Plan shall be final and binding.

7.No Right to Continued Service. Nothing in this Award shall be considered to confer on The Participant any right to continue in the service of the Company or the right to be nominated for election as a director of the Company.

8.No Stockholder Rights. The Participant shall not have any rights as a stockholder of the Company in respect of any of RSUs unless and until this Award vests and is settled in shares of the Common Stock.

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9.Governing Law. This Award shall be governed in accordance with the laws of the State of Illinois.

10.Binding Effect. This Award shall be binding on the Company and the Participant and on The Participant’s heirs, legatees and legal representatives.

11.Code Section 409A.  It is intended that any amounts payable under this Award Agreement shall either be exempt from or comply with Section 409A of the Code and all regulations, guidance and other interpretive authority issued thereunder (“Code Section 409A”) so as not to subject the Participant to payment of any additional tax, penalty or interest imposed under Code Section 409A and any ambiguities herein shall be interpreted to so comply.  Neither the Company nor any of the Subsidiaries, however, makes any representation regarding the tax consequences of this Award.  

 

	
Stericycle, Inc.

	
 
	
 
	
 

	
By
	
 
	
 

	
 
	
 
	
Charles A. Alutto

	
 
	
 
	
President and CEO

 

Acceptance by Participant

I accept this Restricted Stock Unit Agreement and agree to be bound by all of its terms. I acknowledge receipt of a copy of the Stericycle, Inc. 2017 Long-Term Incentive Plan and a copy of the current Information Statement for the Plan. 

 

	
 
	
 
	
 

	
 
	
 
	
Director Name

 

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