Exhibit 10.17


 


EMPLOYMENT AGREEMENT


 


THIS EMPLOYMENT AGREEMENT (the “Agreement”), is made and entered into
effective as of July 1, 2003 (the “Effective Date”), by and between IESI NJ
Corporation, a Delaware corporation (“Company” or “Employer”), and Edward
Apuzzi (“Employee”).


 


WITNESSETH


 


WHEREAS, the Company has previously entered into an Employment
Agreement dated July 1, 1998 with the Employee that expired July 1, 2003; and


 


WHEREAS, Employer desires to continue to employ Employee, and Employee
desires to continue to be employed by Employer, upon the terms and subject to
the conditions set forth in this Agreement;


 


NOW, THEREFORE, in consideration of the mutual promises and covenants
herein set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Employer and Employee, intending
to be legally bound, agree as follows:


 


1.                                       Employment - Employer hereby employs Employee upon the
terms and conditions and for the compensation herein provided.  Employee hereby agrees to be so employed and
to render the services specified herein for Employer and any subsidiaries or
affiliates of Employer.  In his capacity
as an employee of Employer, Employee shall have the title Vice President of
Governmental Affairs and Northeast Business Development Director and shall
devote his full and undivided business time and attention to his duties and
responsibilities for Employer; provided, however, that Employer
shall have the right to reassign Employee to other managerial positions with
the Company.


 


2.                                       Term of Employment - Subject to the provisions for termination
as provided in Section 5 hereof, the term of Employee's employment hereunder
(the “Term”) shall be for a period commencing as of the Effective Date and
terminating thirty (30) months after the Effective Date.


 


3.                                       Duties and Powers - During the Term, Employee agrees as
follows:  to devote his full and
exclusive business time and attention to the business of Employer and of any
subsidiaries or affiliates of the Company (excluding reasonable vacations and
sick leave in accordance with Employer's policies consistent with his
position); to perform all duties in a processional and prudent manner, to
devote the best of his skill, energy, experience and judgment to such duties; and
to communicate to Employer suggestions, ideas or information that may be
helpful to Employer in its businesses. 
Employee agrees to perform all of the duties associated with his
position, subject to all lawful policies and guidelines as may be established
by the Chief Executive Officer of Employer. 
Employee agrees not to engage in any other activity or own any interest
that would conflict with the


 

















 


interests of Employer or
would interfere with his responsibilities to Employer and the performance of
his duties hereunder; provided, however, that: (i) passive
investment of less that 5% of the outstanding securities of any company or any
other investment that does not conflict with Employee's performance of his
duties to Employer hereunder shall be deemed not to violate this provision, it
being understood that, except as set forth below, an investment of more that 5%
in a company other than Employer engaged in the solid waste industry shall be
deemed to conflict with Employee's performance of his duties hereunder;
(ii)  Employee may engage in activities
involving charitable, educational, religious and similar types of
organizations, speaking engagements and similar type activities to the extent
that such other activities do not detract from the performance by Employee of
his duties and obligations hereunder; and (iii) Employee may engage in non
solid waste related business activities and services, provided the time devoted
thereto does not interfere with his full and exclusive business time
responsibilities.  Employer may not
require Employee to move or work more that 50 miles from New York City.


 


4.                                       Compensation and Benefits - For all services rendered by Employee
pursuant to this Agreement, Employer shall compensate Employee as follows:


 


(a)           Base Compensation - In consideration of the full
and faithful performance by Employee of his obligations hereunder during the
Term and subject to the terms and conditions set forth herewith, Employer (or
any subsidiary or affiliate of Employer for which Employee also provides
services hereunder) shall pay to Employee $180,000.00 (such compensation as it
may be increased from time to time shall be referred to herein as the “Base
Compensation”).   Employee's Base
Compensation will be paid in accordance with Employer's customary payroll
practices (but not less frequently than monthly) and will be prorated based
upon the number of days elapsed in any partial year.  Base Compensation shall be reviewed annually and may be increased
at the sole discretion of the Chief Executive Officer of Employer, in
consultation with the Board.


 


(b)           Bonus - In addition to the Base Compensation
payable to Employee, Employee may be awarded cash performance bonuses from time
to time, in such amounts (up to 25% of Base Compensation) as determined in the
sole discretion of the Chief Executive Officer of Employer, in consultation
with the Board.


 


(c)           Stock Options - As a Northeast Region employee, you
will be eligible to participate in the IESI Stock Option Plan.  Option grants are reviewed annually and
subject to IESI's Board of Directors approval.


 


(d)           Benefits - During the Term, Employee shall be
entitled to such benefits (including health and disability coverage, life
insurance, holidays and sick days) as Employer may, from time to time, make
available to its management employees. 
Employee shall be entitled to three (3) weeks paid vacation during each
calendar year of employment, with such vacation allowance being prorated in
respect of any employment


 


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period of less than one full
calendar year.  Notwithstanding the
foregoing, Employee shall not be entitled to take more than one week's vacation
leave at any one time.  Unused vacation
shall not be carried forward.


 


(e)           Expenses - Employee shall be entitled to
reimbursement for his ordinary and necessary business expenses incurred in the
performance of his duties under this Agreement if supported by reasonable
documentation as required by Employer in accordance with its usual practices.


 


(f)            Car Allowance - During the Term, Employee shall be
entitled to a car allowance of $800 per month. 
Employee shall be responsible for all costs associated with such car
(other than fuel expenses reimbursable under section 4(d) hereof).


 


(g)           Liability for Taxes - Employer shall have no
liability for any tax obligation of Employee attributable to any payment made
under this Agreement except for customary federal and state withholding taxes
(e.g., social security, Medicare, etc.). 
Employer may withhold from any such payment such amounts as may be
required by applicable provisions of the Internal Revenue Code, other tax laws,
and the rules and regulations of the Internal Revenue Service and other tax
agencies, as in effect at the time of any such payment.


 


5.                                      Expiration/Termination of
Employment 


 


(a)           Expiration at End of Term - Unless earlier
terminated in accordance with the terms of this Agreement, Employee's
employment shall expire at the end of the Term.


 


(b)           Termination at Will - The parties acknowledge and
agree that Employee's employment hereunder is an employment at will.  Notwithstanding any other provision
contained in this Agreement, either Employee or Employer may terminate
Employee's employment hereunder at any time with or without Cause (as defined
in subsection 5(e)(i)) or for Good Reason (as defined in subsection 5(e)(ii))
at his election upon prior written notice (a “Termination Notice”) to the
other.  A Termination Notice shall be
effective upon delivery to the other party and the termination shall be
effective as of the date set forth in such Termination Notice (hereinafter, the
“Termination Date”).


 


(c)           Effect of Expiration or Termination For Cause or
Without Good Reason - Upon the expiration of the Agreement pursuant to
subsection 5(a) hereof or upon a termination of this Agreement pursuant to
subsection 5(b) hereof by Employer with Cause or by Employee without Good
Reason, Employee shall be entitled to payment of:  (i) Base Compensation through the Termination Date; (ii) amounts
accrued under benefit plans in which Employee is a participant as of the
Termination Date; and (iii) reimbursement of all outstanding expenses under
subsection 4(d).


 


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(d)           Effect of Termination Without Cause or For Good Reason
- Upon termination of this Agreement pursuant to subsection 5(b) hereof by
Employer without Cause or by Employee for Good Reason, Employee shall be
entitled to payment of:  (i) Base
Compensation for the remainder of the term of employment (payable promptly
following the Termination Date) and all benefits under Section 4(c) hereof for
the remainder of the Term; and (ii) amounts accrued under benefit plans in
which Employee is a participant as of such termination date; provided, however,
that upon any such event, Employee shall have a good faith duty to mitigate the
amounts and benefits due to him under this subsection 5(d).


 


(e)           Definitions of “Cause” and “Good Reason” - For
purposes of this Agreement, the terms “Cause” and “Good Reason” shall have the
following meanings:


 


(i)            “Cause” shall mean (1) the failure of Employee to perform
his duties as defined in paragraph 3 above with Employer (other than any such
failure resulting from death or the inability of Employee to perform the
essential functions of his job due to disability, with or without a reasonable
accommodation) or the breach of this Agreement by Employee if Employer gives
notice of such cause and it remains uncured for ten (10) days following such
notice; (2) any act by Employee of fraud or dishonesty with respect to any
aspect of Employer's business; (3) drug or alcohol abuse or related behavior
that impedes Employee's job performance or brings Employee or Employer into
disrepute in the community; (4) misappropriation of funds or any corporate opportunity;
(5) a conviction or affirmative finding by an appropriate administrative agency
that Employee is guilty of a felony or crime of moral turpitude (or a plea of
nolo contendere thereto); (6) acts by Employee attempting to secure or securing
any personal profit not fully disclosed to and approved by the Board in
connection with any transaction entered into on behalf of Employer; (7) gross,
willful or wanton negligence or misconduct by Employee; or (8) any action or
decision by the Trade  Waste Commission
to rescind Employee's right to work for Employer provided however, that in the
event the Employee seeks to dispute this action or decision with a court of
competent jurisdiction, the Employee will be entitle to all benefits under this
Agreement in the event such court finds that the Trade Waste Commission should
not have denied the Employee to be an employee of Employer.


 


(ii)           “Good Reason” shall mean a reduction (other that for
Cause) by Employer in Employee's Base Compensation, an attempt by Employer to
require Employee to work more than 50 miles from New York City or a material
adverse reduction in Employees responsibilities.


 


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6.                                      Non-Interference,
Non-Solicitation and Non-Competition Covenants


 


(a)           Pursuant to this Agreement, Employee has agreed to become
an employee of Employer and to comply with a non-disclosure provision in
Section 8 hereof.  Employee recognizes
and acknowledges that he will be given access to certain of Employer's
Confidential Information (as hereafter defined in Section 8(a)), and have
access to and authority to develop relationships with customers of Employer
because of his position and status as an employee of Company, which he would
not otherwise attain. In consideration of the foregoing, Employee agrees to
comply with the terms of this Section 6.


 


(b)           The restraints imposed by this Section 6 shall apply
during any period that Employee continues to receive payment of Base
Compensation hereunder, and for a period of six months thereafter (the
“Restricted Period”).  In the event that
any Court having jurisdiction should find that the Restricted Period is so long
and/or the scope (distance) (as set forth below) is so broad as to constitute an
undue hardship on Employee, then, in such event only, the Restricted Period and
area limitations shall be valid for the maximum time and area for which they
could be legally made and enforced.


 


(c)           During the Restricted Period, Employee shall not, as an
employee (other than of Employer or an affiliate of Employer), employer,
stockholder, officer, director, partner, consultant, advisor, proprietor,
lender, provider of capital or other ownership, operational or management
capacity, directly or indirectly, (i) solicit or hire any employee of Employer
or otherwise interfere with or disrupt the employment relationship between
Employer and any employee, (ii) solicit or do business with (a) Employer's
customers with whom Employer did business while Employee was employed under
this Agreement or (b) individuals or entities whom Employee met as a result of
his position with Employer while Employee was employed under this Agreement,
that results in competition with Employer in the non-hazardous waste disposal
business within 50 miles of the City of New York, in which any of such
customers have operations (other that customers whose business relationship
with Employer has terminated for at least 90 days) or in which Employer has
conducted business while Employee was employed under this Agreement
(collectively, the “Restricted Area”), or (iii) be associated with any entity
engaged in the business of non-hazardous waste disposal in the Restricted Area
that results in competition with Employer.


 


(d)           Employee expressly recognizes and agrees that the
restraints imposed by this Section 6 are (i) reasonable as to time, geographic
limitation and scope of activity to be restrained; (ii) reasonably necessary to
the enjoyment by Employer of the value of its assets and to protect its
legitimate interests; and (iii) not oppressive.  Employee further expressly recognizes and agrees that the
restraints imposed by this Section 6 represent a reasonable and necessary
restriction for the protection of the legitimate interests of Employer, that
the failure by the Employee to observe and comply with the covenants and
agreements in this Section 6 will cause irreparable harm to Employer, that it
is and


 


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will continue to be
difficult to ascertain the harm and damages to Employer that such a failure by
the Employee would cause, that the consideration received by the Employee for
entering into these covenants and agreements is fair, that the covenants and
agreements and their enforcement will not deprive Employee of his ability to
earn a reasonable living in the waste 
disposal field or otherwise, and that Employee has acquired knowledge
and skills in his field that will allow him to obtain employment without
violating these covenants and agreements. 
Employee further expressly acknowledges that he has been encouraged to
and has consulted independent counsel, and has reviewed and considered this
Agreement with that counsel before executing this Agreement.


 


7.                                       Memoranda, Notes, Records,
Etc. - All memoranda,
notes, records, customer lists or other documents made or complied by Employee
or otherwise made available to him concerning the business of Employer or its
subsidiaries or affiliates shall be Employer's property and shall be delivered
to Employer upon the expiration or termination of Employee's employment
hereunder or at any other time upon request by Employer, and Employee shall
retain no copies of those documents. 
Employee shall never at any time have or claim any right, title or
interest in any material or matter of any sort prepared for or used in
connection with the business or promotion of Employer.


 


8.                                      Nondisclosure


 


(a)           Employee hereby acknowledges that in connection with his
employment by Employer he will be exposed to and may obtain certain information
(including, without limitation, procedures, memoranda, notes, records and
customer and supplier lists whether such information has been or is made,
developed or compiled by Employee or otherwise has been or is made available to
him) regarding the business and operations of Employer and it subsidiaries or
affiliates.  Employee further
acknowledges that such information and procedures are unique, valuable,
considered trade secrets and deemed proprietary by Employer.  For purposes of this Agreement, such
information and procedures shall be referred to as “Confidential Information”,
expect that the following shall not be considered Confidential
Information:  (i) information disclosed
on a non-confidential basis to third parties by Employer (but not by Employee
in violation of this Agreement), (ii) information released from confidential
treatment by written consent of Employer, and (iii) information lawfully
available to the general public.


 


(b)           Employee agrees that all Confidential Information will
remain the property of Employer. 
Employee further agrees, for the duration of the Term and thereafter, to
hold in the strictest confidence all Confidential Information, and not to,
directly or indirectly, duplicate, sell, use, lease, commercialize, disclose or
otherwise divulge to any person or entity any portion of the Confidential
Information or use any Confidential Information for his own benefit or allow
any person, entity or third party, other than Employer and authorized Employees
of the same, to use or otherwise gain access to any Confidential Information.


 


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(c)           It is the intention of the parties that to the extent any
Confidential Information may constitute a “trade secret” as defined by
applicable law, then, in addition to the remedies set forth in this Agreement,
Employer may elect to bring an action against Employee in the case of any
actual or threatened misappropriation of such trade secret by Employee.


 


(d)           Regardless of whether any of the Confidential Information
or any of the items set forth in Section 7 shall constitute a trade secret as
defined by applicable law, Employee expressly recognizes and agrees that the
restrictions contained in Section 7 of this Agreement and this Section 8
represent a reasonable and necessary protection of the legitimate interests of
Employer, that his failure to observe and comply with his covenants and
agreements in those Sections will cause irreparable harm to Employer, that it
is and will continue to be difficult to ascertain the harm and damages to Employer
that such a failure by Employee could cause, and that a remedy at law for such
failure by Employee will be inadequate.


 


9.                                       Enforcement - The parties hereto recognize that the
covenants of Employee hereunder are special, unique and of extraordinary character.  Accordingly, it is the intention of the
parties that, in addition to any other rights and remedies which Employer may
have in the event of any breach of said Sections, Employer shall be entitled,
and hereby is expressly and irrevocably authorized by Employee, inter  alia,
to demand and obtain specific performance, including without limitation
temporary and permanent injunctive relief, and all other appropriate equitable
relief against Employee in order to enforce against Employee, or in order to prevent
any breach or any threatened breach by Employee of, the covenants and
agreements contained herein.  In case of
any breach of this Agreement, nothing herein contained shall be construed to
prevent Employer from seeking such other remedy in the courts as it may elect
or invoke.


 


10.                               Delegation of Duties and
Assignment of Rights 


 


(a)           Employee may not delegate the performance of any of his
obligations or duties hereunder, or assign any rights hereunder, without the
prior written consent of Employer.  Any
such purported delegation or assignment in the absence of such written consent
shall be null and void with no force or effect.


 


(b)           Employer may not assign this Agreement except with the
prior written consent of Employee, except that Employer may without Employee's
consent assign all of it rights and obligations under this Agreement to the
person or entity acquiring a majority of the assets or outstanding stock of
Employer, or the parent company of Employer, or pursuant to a merger or
consolidation of Employer, or the parent company of Employer.  In the event of such an assignment by
Employer, each reference in this Agreement to Employer shall include the
assignee from and after the date of such assignment.


 


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(c)           In the event of a valid assignment pursuant to this
Section 10, this Agreement shall be binding on and inure to the benefit of the
parties hereto and their respective heirs, representatives, successors and
permitted assigns and any receiver, trustee in bankruptcy or representative of
the creditors of each such person.


 


11.                                 Survival of Covenants - Notwithstanding anything contained in this
Agreement, upon the expiration of the Term or the Restricted Period, as
applicable, or in the event Employee's employment is terminated for any reason
whatsoever, the covenants and agreements of Employee contained in Sections 6
(to the extent set forth therein), 7, 8, 9 and 11 and the covenants of Employer
contained in Section 5 hereof shall survive any such expiration or termination
and shall not lapse except as provided herein.


 


12.                                 Warranty - Employee does hereby warrant that he has
not taken any action and covenants that during the Term of this Agreement, or
the Restricted Period, as applicable, he shall take no such action, that
constitutes or will constitute a breach of any agreement concerning
confidential information and trade secrets, confidentiality, solicitation or
non-competition to which he is bound as a party.


 


13.                                 Severability / Modification - If any term or provision of this Agreement
is held or deemed to be invalid or unenforceable in whole or in part, by a
court of competent jurisdiction, such term or provision shall be ineffective to
the extent of such invalidity or unenforceability without rendering invalid or
unenforceable the remaining terms and provisions of this Agreement.


 


14.                                 Governing Law - This agreement is entered into in New
Jersey, and the construction, validity and interpretation of this agreement
shall be governed by the law of the State of New Jersey without regard to the
laws of conflicts of laws.


 


15.                                 Effectiveness; Entire
Agreement; Amendment -
This Agreement contains the entire understanding and agreement between the
parties relating to the subject matter hereof. 
Neither this Agreement nor any provision hereof may be waived, modified,
amended, changed, discharged, or terminated, except by an agreement in writing
signed by the party against whom enforcement of any waiver, modification,
change, amendment, discharge or termination is sought.


 


16.                                 Notices - Any notice required or permitted to be
given under the provisions of this Agreement shall be in writing and shall be
deemed to have been duly given on the date of delivery if delivered personally
to the party to whom notice is to be given (or to the appropriate address
below), or on the third day after mailing if mailed to the party to whom notice
is to be given by certified or registered mail, return receipt requested,
postage prepaid, or by courier, addressed as follows, or to such other person
at such other address as any party may request in writing to the other party to
this Agreement.


 


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  To Employee:

  	
  Edward Apuzzi

  
	
   

  	
  17 Harvest Drive

  
	
   

  	
  Plainsboro, NJ  08536

  
	
   

  
	
  To Employer:

  	
  IESI NJ Corporation

  
	
   

  	
  IESI Corporation

  
	
   

  	
  Attention:  Thomas Fowler

  
	
   

  	
  6125 Airport Freeway

  
	
   

  	
  Haltom City, TX  76117

  
	
   

  	
  817-314-5800 (tel)

  
	
   

  	
  817-314-5238 (fax)

  



 


Any party may change its
address for purposes of this paragraph by giving the other parties written
notice of the new address in the manner set forth above.


 


17.                                 Headings - The section headings herein are for
convenience only and shall not be used in interpreting or construing this
Agreement.


 


18.                                 IESI's New York City Hauling
Company Purchase -
Provided Employee has not been terminated for Cause or breached any of the
terms and conditions of this Agreement, Employee shall have, along with Joseph
LoVerde, a joint right of first option to purchase the following businesses in
the event the Company decides to sell or an offer to purchase is received:  the New York City Hauling Company, located
at 2630 Park Avenue, Bronx, NY;  the
Varick Street C&D Transfer Station at 330 Seventh Ave., Brooklyn, NY; and
the Jersey City Recycling at 5 Linden Avenue E, Jersey City, NJ.  In the event Employee exercises the above
joint right of first option, then the Term of this Agreement shall expire on
the date of such exercise.


 


 


INTENTIONALLY LEFT BLANK


 


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IN WITNESS WHEREOF, the parties
hereto have executed this Employment Agreement to be effective as of the
Effective Date.


 


	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/Edward Apuzzi

  
	
   

  	
  Edward Apuzzi

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYER

  
	
   

  	
  IESI NJ
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles F. Flood

  
	
   

  	
   

  	
  Charles F. Flood,
  President and CEO

  



 


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