|   | 1. | Purpose      of the Plan |
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|   | The      purpose of the American Ecology Corporation 2009 Executive Management      Incentive Bonus Plan (“Plan”) is to provide certain of its key senior      management employees, for the 2009 fiscal year, with incentive      compensation consistent with the interests of American Ecology Corporation      stockholders. |
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|   | 2. | Eligibility |
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|   | Eligibility      in the Plan is limited to Board approved and designated senior management      employees of the Company and its subsidiaries (the “Company”). For      purposes of the Plan, the Compensation Committee of the Company’s Board of      Directors is the PlanAdministrator. |
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|   | A      listing of employees approved by the Board of Directors (“Participants”)      with their respective Initial Base Percentage (“IBP”) and Excess      Percentage (“EP”) shall be maintained and administered by the Chief      Financial Officer (“CFO”) under the direction of the Plan Administrator      and is attached as Exhibit A. Participation      in the Plan supersedes any prior agreements relating to the subject matter      hereof, either written or verbal. |
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|   | Except      in the event of the Participant’s death, to be eligible for the maximum      incentive award (a “Bonus Award”) under the Plan, a Participant must have      been employed on a full-time basis by the Company for the entire 12 months      of 2009 (the “Performance Period”) and must be employed on the last day of      the Performance Period and at the date of such payment. Plan Participants      whose employment with the Company began during the Performance Period may      be eligible for a Bonus Award on a pro rata basis. Plan Participants whose      employment with the Company has been terminated, for any reason whatsoever      (except for death), prior to the payment of any Bonus Award, shall not be      eligible to receive any paymenthereunder. |
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|   | 3. | Participant      Groups |
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|   | The      Plan provides for four Participant categories in  2009. |
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|   | A) | Chief Executive Officer      (“CEO) - Fifty percent (50%) of the Bonus Award shall be based on      the Company achieving operating income objectives, taking into account the      cost of such Bonus Award. Up to an additional fifty percent (50%) shall be      awarded, with the approval of the Board of Directors, for achieving annual      priorities, updating and implementing Company initiatives and out year      strategic plans, and implementing processes to ensure tracking and      achievement of Board-adoptedobjectives. |
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|   | B) | Corporate Officers -      This category includes the President and Chief Operating Officer and the      four Corporate Vice Presidents and their Bonus Awards shall be based on      the following criteria: |
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|   | i. | President and Chief Operating      Officer (“COO”) - Fifty percent (50%) of the Bonus Award shall be      based on the Company achieving operating income objectives, taking into      account the cost of such Bonus Award. Up to an additional fifty percent      (50%) shall be awarded, at the discretion of the CEO, for management of      site efforts to achieve annual priorities, management of Company resources      and completion of approved capital projects within budget and on schedule,      effective management of health and safety programs, transportation      arrangements, teamwork, development of out year plans for operating      facility permit expansions and investments in operating facility plant and      equipment, driving the overall sales and marketing effort to meet      established territory targets, protecting existing business, team work,      investor relations, business development, market development planning for      out year growth and other evaluativefactors. |
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|   | ii. | Vice President and Chief      Financial Officer (“CFO”). Fifty percent (50%) of the Bonus Awards      shall be based on the Company achieving operating income objectives,      taking into account the cost of such Bonus Awards. Up to an additional      fifty percent (50%) shall be awarded, at the discretion of the CEO, for      compliance with federal securities regulations including financial      reporting requirements and compliance and internal control requirements,      investor relations, business development and financing initiatives,      development of out year capital structure and finance plans, team work,      and other evaluative factors. |
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|   | iii. | Vice President of      Operations. Fifty percent (50%) of the Bonus Award shall be based      on the Company achieving operating income objectives, taking into account      the cost of such Bonus Awards. Up to an additional fifty percent (50%)      shall be awarded, at the discretion of the President and COO for      management of site efforts to achieve annual priorities, management of      Company resources and completion of approved capital projects within      budget and on schedule, effective management of health and safety      programs, transportations arrangements, teamwork, and development of out      year plans for operating facility permit expansions and investments in      operating facility plant andequipment. |
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|   | iv.    | Vice President and Chief      Information Officer. Fifty percent (50%) of the Bonus Award shall      be based on the Company achieving operating income objectives, taking into      account the cost of such Bonus Awards. Up to an additional fifty percent      (50%) shall be awarded, at the discretion of the CEO, for achieving      priorities for support on potential acquisitions, new information systems      development and implementation, servicing ongoing Information Technology      needs, developing out year information system and technology plans to      support strategic plans, teamwork, support for the Company’s operating      facilities and other evaluative factors. |
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|   | v.     | Vice President and      Controller. Fifty percent      (50%) of the Bonus Award shall be based on the Company achieving operating      income objectives, taking into account the cost of such Bonus Awards. Up      to an additional fifty percent (50%) shall be awarded, at the discretion      of the CFO, for compliance with federal securities regulations including      financial reporting requirements and compliance, internal control      requirements, financing initiatives, acquisition integration, team work      and other evaluativefactors.                                                                                                                                         |

|   | C) | Corporate Officer - Vice      President of Sales and Marketing - Fifty percent (50%) of the Bonus      Award shall be based on the Company achieving operating income objectives,      taking into account the cost of such Bonus Award. Up to an additional      fifty percent (50%) shall be awarded, at the discretion of the President      and COO, for driving the overall sales and marketing effort to meet      established territory targets, protecting existing business, team work,      business development assessment, market development planning for out year      growth and other evaluativefactors. |
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|   | D) | Operating Facility      Management - This category includes three operating facility      General Managers. Twenty-five percent (25%) of the Bonus Awards shall be      based upon achievement of Company operating income objectives, taking into      account the cost of such bonuses and twenty-five percent (25%) shall be      based on Site operating income. Up to an additional fifty percent (50%)      shall be awarded, at the discretion of the President and COO, based on      achieving established annual priorities, regulatory compliance, health and      safety program effectiveness, effective use of Company resources,      completion of approved capital projects within budget and on schedule,      development of recommendations for out year permit expansions and      investments in operating facility plant and equipment, team work and other      evaluative factors. |
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|   | A) | Cash      award at target      performance: |
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|   | i. | Chief Executive Officer:      Seventy-five percent (75%) of Participant’s base      salary. |
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|   | ii. | President and Chief Operating      Officer:  Forty percent (40%) of Participant’s base      salary. |
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|   | iii. | Corporate      Officers:  Thirty-five percent (35%) of Participants’ base      salary for the Vice President and Chief Financial Officer, Vice President      of Operations, Vice President and Chief Information Office, and Vice      President and Controller. |
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|   | iv. | Corporate Officer - Vice      President of Sales and Marketing: Twenty-five percent (25%) of      Participant’s base salary. |
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|   | v. | Operating Facility      Management:  Thirty-five percent (35%) of Participants’      base salary. |
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|   | B) | Additional      cash award: |
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|   | i. | In      the event the Company exceeds the target performance goal, the Chief      Executive Officer will be eligible for an additional bonus payment      calculated by multiplying his base salary by 2.5% for every 1% increase      over the target performance goal. |
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|   | ii. | In      the event the Company exceeds the target performance goal, the President      and Chief Operating Officer, the Vice President and Chief Financial      Officer, Vice President of Operations, Vice President and Chief      Information Office, Vice President and Controller, Vice President of Sales      and Marketing and the three Operating Facility General Managers will be      eligible for an additional bonus payment calculated by multiplying their      respective salaries by 1% for every 1% increase over the target      performance goal. |
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|   | 4. | Procedure |
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|   | The      Plan Administrator shall have full power, discretion and authority to      administer and interpret the Plan, including the calculation and      verification of all Bonus Awards, and to establish rules and procedures      for its administration, as the Plan Administrator deems necessary and      appropriate. Any interpretation of the plan or other act of the Plan      Administrator in administering the Plan shall be final and binding on all      Plan Participants. No member of the Plan Administrator or the Board of      Directors shall be liable for any action, interpretation or construction      made in good faith with respect to the Plan. No member of the Plan      Administrator shall participate in the Plan. The Company shall indemnify,      to the fullest extent permitted by law, each member of the Board who      becomes liable in any civil action or proceeding with respect to decisions      made relating to the Plan. The CEO shall provide the Plan Administrator      with a year-end report of Participants in the Plan and their respective      annual salaries and recommendations for evaluative factor Bonus Awards for      all participants other than himself, along with any other information that      the Plan Administrator may request.  The Plan Administrator      shall determine any evaluative factor Bonus Award for the    CEO. |
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|   | A      Plan Participant may be removed from the Plan, with no right to any Bonus      Award under the Plan, if it is determined in the discretion of the Plan      Administrator that any of the following have  occurred: |
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|   | A) | Insubordination, misconduct,      malfeasance, or any formal disciplinary action taken by the Company      during the performance year or prior topayment. |
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|   | B) | Disability. Should a      Participant not be actively at work for an extended period of time due to      an illness or injury, in such a way as to qualify for long-term disability      benefits, he/she may not receive abonus. |
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|   | C) | Demotion. If a Plan      Participant is removed from the Participant group that made him or her an      eligible Participant under the Plan at any time during the Performance      Period, then such employee shall be deemed to be ineligible for      participation in the Plan and shall not receive any Bonus Award under the      Plan. |
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|   | 5. | Miscellaneous      Provisions. |
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|   | A) | Employment Rights. The      Plan does not constitute a contract of employment and participation in the      Plan will not give a Participant the right to continue in the employ of      the Company on a full-time, part-time or other basis or alter their      at-will employment status. Participation in the      Plan will not give any Participant any right or claim to any benefit under      the Plan, unless such right or claim has specifically been granted by the      Plan Administrator under the terms of thePlan. |
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|   | B) | Plan Administrator’s Final      Decision. Any interpretation of the Plan and any decision on any      matter pertaining to the Plan that is made by the Plan Administrator in      its discretion in good faith shall be binding on all    persons. |
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|   | C) | Governing Law. Except      to the extent superseded by the laws of the United States, the laws of the      State of Idaho, without regard to its conflicts of laws principles, shall      govern in all matters relating to thePlan. |
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|   | D) | Interests Not      Transferable. Any interest of a Participant under the Plan may not      be voluntarily sold, transferred, alienated, assigned or encumbered, other      than by will or pursuant to the laws of descent and distribution.      Notwithstanding the foregoing, if a Plan Participant dies during the      Performance Period, or prior to payment of the Bonus Award, then a pro      rata portion of the Bonus Award  that would otherwise be paid to      such deceased Participant if such Participant were to remain in the active      employment of the Company until the date of Payment of such Bonus Award      shall be paid to the deceased Participant’s beneficiary, as designated in      writing by such Participant; provided however, that if the deceased      Participant has not designated a beneficiary then such amount shall be      payable to the deceased Participant’s estate.  Payment to a      Participant’s estate or beneficiary pursuant to this Section 5(d) shall be      made in 2010. |
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|   | E) | Severability. In the      event any provision of the Plan shall be held to be illegal or invalid for      any reason, such illegality or invalidity shall not affect the remaining      parts of the Plan, and the Plan shall be construed and enforced as if such      illegal or invalid provisions had never been contained in the      Plan. |
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|   | F) | Withholding. The Company will      withhold from any amounts payable under the Plan applicable withholding      including federal, state, city and local taxes, FICA and Medicare as shall      be legally required. Additionally, the Company will withhold from any      amounts payable under the Plan, the applicable contribution for the      Participant’s 401(k) Savings and Retirement Plan as defined in the 401(K)      Plan description protected underERISA. |
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|   | G) | Effect on Other Plans or      Agreements. Payments or benefits provided to a Plan Participant      under any stock, deferred compensation, savings, retirements or other      employee benefit plan are governed solely by the terms of each of such      plans. |
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| Name      of Individual |   | Relationship      to Me |   | Birth      Date (if minor) |

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| Address |

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| Name      of Trust |   | Date      of Trust |

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| Trustee |

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| Name      of Individual |   | Relationship      to Me |   | Birth      Date (if minor) |

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| Address |

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