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| 1.   | Purpose      of the Plan |
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|   | The      purpose of the American Ecology Corporation 2010 Executive Management      Incentive Plan (“Plan” or “MIP”) is to provide key executive management      employees, for the 2010 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 executive      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 2010 (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  2010. |
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| A)    | President and 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-adopted  objectives. |
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| B)    | Corporate Officer – Senior 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 CEO, 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 evaluative factors. |
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| C)    | Corporate Officers -      This category includes the four Corporate Vice Presidents and their Bonus      Awards shall be based on the followingcriteria: |
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| i.    | 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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| ii.    | 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 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, transportations      arrangements, teamwork, and development of out-year plans for operating      facility permit expansions and investments in operating facility plant and      equipment. |
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| iii.    | 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 CFO, 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 evaluativefactors. |
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| iv.    | 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 evaluative factors. |
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| A)    | Cash      award at target      performance: |
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| i.    | CEO: Seventy-five      percent (75%) of Participant’s basesalary. |
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| ii.    | Senior Vice President of Sales      and Marketing: Fifty percent (50%) of Participant’s base      salary. |
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| iii.    | CFO and Vice President of      Operations:  Forty percent (40%) of Participant’s base      salary. |
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| iv.    | Vice President, Controller and      Vice President Chief Information Officer:  Thirty five      percent (35%) of Participant’s basesalary. |
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| B)    | Additional      cash award: |
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| i.    | In      the event the Company exceeds the target performance goal, the CEO 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 CFO, Vice      President of Operations, Vice President and Chief Information Office, Vice      President and Controller, and Senior Vice President of Sales and Marketing      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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