Document:

exv10w1

 

Exhibit 10.1

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”). NO INTEREST IN THIS NOTE MAY BE OFFERED OR SOLD EXCEPT PURSUANT TO (i) AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT, (ii) TO THE EXTENT APPLICABLE, PURSUANT TO RULE 144 UNDER THE
ACT (OR ANY SIMILAR RULE UNDER THE ACT), OR (iii) AN EXEMPTION FROM REGISTRATION UNDER THE ACT
WHERE THE HOLDER HAS FURNISHED TO THE PAYOR AN ACCEPTABLE OPINION OF ITS COUNSEL THAT AN EXEMPTION
PROM REGISTRATION UNDER THE ACT IS AVAILABLE.

ARCADIA RESOURCES, INC.

PROMISSORY NOTE

			
	$21,000,000.00
	 	November 30, 2006

     FOR VALUE RECEIVED, the undersigned, Arcadia Resources, Inc., a Nevada corporation
(‘Payor”), having its executive office and principal place of business at 26777 Central Park
Boulevard, Suite 200, Southfield, Michigan 48076, hereby promises to pay to JANA Master Fund, Ltd.
(“Payee”), having an address at 200 Park Avenue, Suite 3300, New York, NY 10166, at Payee’s address
set forth above (or at such other place as Payee may from time to-time hereafter direct by notice
in writing to Payor), the principal sum of TWENTY-ONE MILLION DOLLARS ($21,000,000.00), in such
coin or currency of the United States of America as at the time shall be legal tender for the
payment of public and private debts in accordance with the terms hereof.

	1.	 	Payment of Principal and Interest.

	 	1.1	 	The principal amount of this Note outstanding
from time to time shall bear simple interest at
the annual rate (the “Note Rate”) equal to the
One Year Libor Rate (as such rate is published
in the Wall Street Journal) plus seven and one
half percent (7.5%) from the date hereof (“Base
Interest Rate”) until the entire principal
balance due under this Note has been paid in
full; provided, however, that in the event the
entire principal balance due under this Note
has not been paid in full as of January 31,
2007, the Base Interest Rate shall increase by
1% per month on the first day of each month
beginning February 1, 2007, not to exceed a
maximum aggregate increase of 5% in total.
	 
	 	1.2	 	The unpaid principal balance shall be due and
payable on January 31, 2008 (“Maturity Date”).
Accrued unpaid interest on the unpaid principal
balance due under this Note at the Note Rate
shall be due and payable on the following
dates: December 31, 2006; March 31, 2007; June
30, 2007; September 30, 2007; December 31,
2007; and the Maturity Date.
	 
	 	1.3	 	If Payor prepays any portion of the principal amount due under this Note
on or before December 30, 2006 (“Permitted Prepayment Date”), together
with the unpaid interest thereon accrued through the date of such
prepayment, Payor shall pay a prepayment fee equal to the One Year Libor
Rate (as such rate is

Page 1 of 7

 

	 	 	 	published in the Wall Street Journal on the date
of such prepayment) plus one and one-half percent (1.5%).
	 
	 	1.4	 	All payments (including prepayments) made by the Payor on this Note
shall be applied first to the payment of accrued unpaid interest on this
Note and then to the reduction of the unpaid principal balance of this
Note.
	 
	 	1.5	 	In the event that the date for the payment of any amount payable under
this Note falls due on a Saturday, Sunday or public holiday under the
laws of the State of New York, the time for payment of such amount shall
be extended to the next succeeding business day and interest at the Note
Rate shall continue to accrue on any principal amount so effected until
the payment thereof on such extended due date.

	2.	 	 Replacement of Note.

	 	2.1	 	In the event that this Note is mutilated, destroyed, lost or stolen,
Payor shall, at its sole expense, execute, register and deliver a new
Note, in exchange and substitution for this Note, if mutilated, or in
lieu of and substitution for this Note, if destroyed, lost or stolen. In
the case of destruction, loss or theft, Payee shall furnish to Payor
indemnity reasonably satisfactory to Payor, and in any such case, and in
the case of mutilation, Payee shall also furnish to Payor evidence to
its reasonable satisfaction of the mutilation, destruction, loss or
theft of this Note and of the ownership thereof. Any replacement Note
so issued shall be in the same outstanding principal amount as this Note
and dated the date to which interest shall have been paid on this Note
or, if no interest shall have yet been paid, dated the date of this
Note.
	 
	 	2.2	 	Every Note issued pursuant to the provisions of Section 2.1 above in
substitution for this Note shall constitute an additional contractual
obligation of the Payor, whether or not this Note shall be found at any
time or be enforceable by anyone.

	3.	 	Intentionally Omitted
	 
	4.	 	Covenants of Payor.
	 
	 	 	Payor, on behalf of itself and its subsidiaries, covenants and agrees that, so long as this Note remains outstanding
and unpaid, in whole, or in part:

	 	4.1	 	Payor and its subsidiaries will not sell, transfer or dispose of, nor
permit or suffer the placement of any lien (statutory or other),
priority, security interest, encumbrance or any other preferential
arrangement upon, any of their material assets (including but not
limited to real property and Payor’s equity interests in such
subsidiaries) without obtaining Payee’s written consent, other than
inventory in the ordinary course of business;
	 
	 	4.2	 	Payor shall upon Payee’s request furnish Payee with monthly financial
updates;
	 
	 	4.3	 	Payor and its subsidiaries will not pay any type of bonus to senior executive

Page 2 of 7

 

	 	 	 	officers unless Payor’s earnings before interest, taxes,
depreciation and amortization (“EBITDA”) for the fiscal year ending
March 30, 2007 is greater than Eleven Million Dollars ($11,000,000) or
Payee otherwise gives its written consent;
	 
	 	4.4	 	Payor and its subsidiaries will not engage in sale/lease back
transactions wherein real or personal property of Payor or its
subsidiaries is sold and then reacquired in any type of lease
transaction if the aggregate amount of all such transactions would
exceed Five Million Dollars ($5,000,000);
	 
	 	4.5	 	Payor and its subsidiaries will promptly pay and discharge all lawful
taxes, assessments and governmental charges or levies imposed upon any
of them, their income and profits, or any of their property, before the
same shall become in default, as well as all lawful claims for labor,
materials and supplies which, if unpaid, might become a lien or charge
upon such properties or any part thereof; provided, however, that Payor
or such subsidiary shall not be required to pay and discharge any such
tax, assessment, charge, levy or claim so long as the validity thereof
shall be contested in good faith by appropriate proceedings and Payor or
such subsidiary, as the case may be, shall set aside on its books
adequate reserves with respect to any such tax, assessment, charge, levy
or claim so contested;
	 
	 	4.6	 	Payor and its subsidiaries will do or cause to be done all things
necessary to preserve and keep in full force and effect each of their
corporate existence, rights and franchises and substantially comply with
all laws applicable to them as their counsel may advise;
	 
	 	4.7	 	Except with respect to any debt owing to Payee or the refinancing of any
existing debt of Payor and/or its subsidiaries owing to Payee, Payor and
its subsidiaries will not: (i) incur any obligation for borrowed money,
any obligation evidenced by bonds, notes or similar instruments
(including any obligations incurred in the acquisition of property,
assets or business), any reimbursement obligation, any deferred purchase
price obligation, any guarantees of any such obligations, or any similar
obligations (collectively, “debt”) which is senior or pari passu to the
debt under this Note, or to which the debt under this Note would be
structurally subordinate, if such debt together with such existing debt
of Payor and its subsidiaries would exceed Twenty Five Million Dollars
($25,000,000), without Payee’s consent or (ii) incur debt junior to the
debt under this Note in an aggregate amount which exceeds Twenty Five
Million Dollars ($25,000,000), other than to the extent such junior debt
is issued to finance acquisitions in the ordinary course of Payor or its
subsidiaries’ business, without Payee’s consent;
	 
	 	4.8	 	Payor and its subsidiaries will utilize the proceeds of any sale of any
of real or personal property for any of: (i) additional capital
expenditures, (ii) payment of any debt which is senior to the debt under
this Note, or (iii) the payment of debt arising under this Note;
	 
	 	4.9	 	Payor and its subsidiaries will not issue any form of equity or other
security

Page 3 of 7

 

	 	 	 	(other than debt) in a public or private placement capital
raise without Payee’s consent;
	 
	 	4.10	 	Payor and its subsidiaries will at all times maintain, preserve, protect
and keep each of their property used or useful in the conduct of
business in good repair, working order and condition (except for the
effects of reasonable wear and tear in the ordinary course of business)
and will from time to time, make all necessary and proper repairs,
renewals, replacements, betterments and improvements thereto;
	 
	 	4.11	 	Payor and its subsidiaries will keep adequately insured, by financially
sound reputable insurers, all property of a character usually insured by
similar corporations and carry such other insurance as is usually
carried by similar corporations;
	 
	 	4.12	 	Payor will, promptly following the occurrence of an Event of Default or
of any condition or event which, with the giving of notice or the lapse
of time or both, would constitute an Event of Default, furnish a
statement of Payor’s Chief Executive Officer or Chief Financial Officer
to Payee setting forth the details of such Event of Default or condition
or event and the action which Payor intends to take with respect
thereto; and
	 
	 	4.13	 	Payor will, and will cause each of its subsidiaries to, at all times
maintain books of account in which all of its financial transactions are
duly recorded in conformance with generally accepted accounting
principles.

	5.	 	Events of Default. The following events each constitute an “Event of Default”:

	 	5.1	 	The dissolution of Payor or any vote in favor thereof by the board of
directors and shareholders of Payor; or
	 
	 	5.2	 	Payor makes an assignment for the benefit of creditors, or files with a
court of competent jurisdiction an application for appointment of a
receiver or similar official with respect to it or any substantial part
of its assets, or Payor files a petition seeking relief under any
provision of the Federal Bankruptcy Code or any other federal or state
statute now or hereafter in effect affording relief to debtors, or any
such application or petition is filed against Payor, which application
or petition is not dismissed or withdrawn within sixty (60) days from
the date of its filing; or
	 
	 	5.3	 	Payor fails to pay the principal amount, or interest on, or any other
amount payable under this Note within five (5) days of when the same
becomes due and payable; or
	 
	 	5.4	 	Payor admits in writing its inability to pay its debts as they mature; or
	 
	 	5.5	 	Payor sells all or substantially all of its assets or merges or is
consolidated with or into another corporation other than a transaction
whose primary purpose is to re-domicile the Payor ; or
	 
	 	5.6	 	A proceeding is commenced to foreclose a security interest or lien in
any

Page 4 of 7

 

	 	 	 	property or assets of Payor as a result of a default in the payment
or performance of any debt (in excess of $350,000 and secured by such
	 
	 	5.7	 	property or assets) of Payor or of any subsidiary of Payor; or
5.7 A final judgment for the payment of money in excess of $350,000 is
entered against Payor by a court of competent jurisdiction, and such
judgment is not discharged (nor the discharge thereof duly provided for)
in accordance with its terms, nor a stay of execution thereof procured,
within sixty (60) days after the date such judgment is entered, and,
within such period (or such longer period during which execution of such
judgment is effectively stayed), an appeal therefrom has not been
prosecuted and the execution thereof caused to be stayed during such
appeal; or
	 
	 	5.8	 	An attachment or garnishment is levied against the assets or properties
of Payor or any subsidiary of Payor involving an amount in excess of
$350,000 and such levy is not vacated, bonded or otherwise terminated
within sixty (60) days after the date of its effectiveness; or
	 
	 	5.9	 	Payor or any subsidiary defaults in the due observance or performance of
any covenant, condition or agreement to be observed or performed
pursuant to the terms of this Note (other than the default specified in
Section 5.3 above) and such default continues uncured for a period of
thirty (30) days from the date Payor receives written notice from the
Payee; or

	 	 	Upon the occurrence of any such Event of Default and at any time thereafter, the holder of this Note shall have the
right (at such holder’s option) to declare the principal of, accrued unpaid interest on, and all other amounts payable
under this Note to be forthwith due and payable, whereupon all such amounts shall be immediately due and payable to
the holder of this Note, without presentment, demand, protest or other notice of any kind, all of which are hereby
expressly waived; provided.
	 
	6.	 	Suits for Enforcement and Remedies.

	 	6.1	 	If any one or more Events of Default shall occur and be continuing, the
Payee may proceed to (1) protect and enforce Payee’s rights either by
suit in equity or by action at law, or both, whether for the specific
performance of any covenant, condition or agreement contained in this
Note or in any agreement or document referred to herein or in aid of the
exercise of any power granted in this Note or in any agreement or
document referred to herein, (ii) enforce the payment of this Note, or
(iii) enforce any other legal or equitable right of the holder of this
Note. No right or remedy herein or in any other agreement or instrument
conferred upon the holder of this Note is intended to be exclusive of
any other right or remedy, and each and every such right or remedy shall be cumulative and shall be in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity
or by statute or otherwise.

Page 5 of 7

 

	7.	 	Unconditional Obligation; Fees, Waivers, Other.

	 	7.1	 	The obligation to make the payments provided for in this Note are
absolute and unconditional and are not subject to any defense, set-off,
counterclaim, rescission, recoupment or adjustment whatsoever.
	 
	 	7.2	 	If, following the occurrence of an Event of Default, Payee shall seek to
enforce the collection of any amount of principal of and/or interest on
this Note, there shall be immediately due and payable from Payor, in
addition to the then unpaid principal of, and accrued unpaid interest
on, this Note, all reasonable costs and expenses incurred by Payee in
connection therewith, including, without limitation, reasonable
attorneys’ fees and disbursements.
	 
	 	7.3	 	No forbearance, indulgence, delay or failure to exercise any right or
remedy with respect to this Note shall operate as a waiver or as an
acquiescence in any default, nor shall any single or partial exercise of
any right or remedy preclude any other or further exercise thereof or
the exercise of any other right or remedy.
	 
	 	7.4	 	This Note may not be modified or discharged (other than by payment)
except by a writing duly executed by Payor and Payee.
	 
	 	7.5	 	Payor hereby expressly waives demand and presentment for payment, notice
of nonpayment, notice of dishonor, protest, notice of protest, bringing
of suit, and diligence in taking any action to collect amounts called
for hereunder, and shall be directly and primarily liable for the
payment of all sums owing and to be owing hereon, regardless of and
without any notice, diligence, act or omission with respect to the
collection of any amount called for hereunder or in connection with any
right, lien, interest or property at any and all times which Payee had
or is existing as security for any amount called for hereunder.

	8.	 	Intentionally Deleted.
	 
	9.	 	Intentionally Deleted.
	 
	10.	 	Intentionally Deleted.
	 
	11.	 	 Miscellaneous.

	 	11.1	 	The headings of the various paragraphs of this Note are for convenience
of reference only and shall in no way modify any of the terms or
provisions of this Note.
	 
	 	11.2	 	All notices required or permitted to be given hereunder shall be in
writing and shall be deemed to have been duly given when personally
delivered or sent by registered or certified mail (return receipt
requested, postage prepaid), facsimile transmission or overnight courier
to the address of the intended recipient as set forth in the preamble to
this Note or at such other address as the intended recipient shall have
hereafter given to the other party hereto pursuant to the provisions of
this Note.

Page 6 of 7

 

	 	11.3	 	This Note and the obligations of Payor and the rights of Payee shall be
governed by and construed in accordance with the substantive laws of the
State of New York without giving effect to the choice of laws rules
thereof.
	 
	 	11.4	 	This Note shall bind Payor and its successors and assigns.
	 
	 	11.5	 	This Note amends, supersedes and restates in its entirety that certain
Note dated June 29, 2006, given by Payor to Payee, in the principal
amount of $15 million (the “June 29, 2006 Note”), which June 29, 2006
Note is hereby rendered null and void.

	 	 	 	 	 
	 	ARCADIA RESOURCES, INC.

 	 
	 	By:  	/s/  John E. Elliott, II
 	 
	 	 	John E. Elliott, II 	 
	 	 	Its: Chief Executive Officer 	 
	 

Accepted and Agreed to:

JANA MASTER FUND, LTD.

By: Its Investment Advisor, JANA Partners LLC

	 	 	 	 	 
	By:

	 	/s/ Marc Lehmann
 

Marc Lehmann
	 	 
	 
	 	 	 	 
	Its:

	 	Partner	 	 

Page 7 of 7exv10w1

 

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into on this 1st day of
December, 2006, but as effective as of the date set forth herein, by and between Waste Management,
Inc. (the “Company”), and Jeff Harris (the “Executive”).

     1. Employment.

     The Company shall employ Executive, and Executive shall be employed by the Company upon the
terms and subject to the conditions set forth in this Agreement.

     Executive acknowledges and represents that, any and all prior employment agreements, including
without limitation certain Employment Agreement between he and the Company dated November 3, 1999,
is terminated, and that any and all obligations of the Company created thereunder, whether express
or implied, are null and void and of no further force or effect, and that the only rights,
obligations and duties between the Company and Executive are those expressly set forth in this
Agreement.

     2. Term of Employment.

     The period of Executive’s employment under this Agreement shall commence on March 30, 2006
(“Employment Date”), and shall continue for a period of two (2) years, and shall automatically be
renewed for successive one (1) year periods on each anniversary of the Employment Date thereafter,
unless Executive’s employment is terminated in accordance with Section 5 below. The period during
which Executive is employed hereunder shall be referred to as the “Employment Period.”

     3. Duties and Responsibilities.

     (a) Executive shall serve as the Senior Vice President, Midwest Group. In such capacity,
Executive shall perform such duties and have the power, authority, and functions commensurate with
such position in similarly-sized public companies, and have and possess such other authority and
functions consistent with such position as may be assigned to Executive from time to time by the
Chief Executive Officer, President, Chief Operating Officer or the Board of Directors (the “Board”)
of the Company.

     (b) Executive shall devote substantially all of his working time, attention and energies to
the business of the Company, and its affiliated entities. Executive may make and manage his
personal investments (provided such investments in other activities do not violate, in any material
respect, the provisions of Section 10 of this Agreement), be involved in charitable and
professional activities, and, with the prior written consent of the Board, serve on boards of other
for profit entities, provided such activities do not materially interfere with the performance of
his duties hereunder (however, the Board does not typically allow officers to serve on more than
one public company board at a time).

 

 

     4. Compensation and Benefits.

     (a) Base Salary. During the Employment Period, the Company shall pay Executive a base salary
at the annual rate of Four Hundred Thirty-Five Thousand Four Dollars ($435,000.00) per year, or
such higher rate as may be determined from time to time by the Company (“Base Salary”). Such Base
Salary shall be paid in accordance with the Company’s standard payroll practice for its executive
officers. Once increased, Base Salary shall not be reduced.

     (b) Annual Bonus. During the Employment Period, Executive will be entitled to participate in
an annual incentive compensation plan of the Company, as established by the Compensation Committee
of the Board from time to time. Executive’s target annual bonus will be eighty-five percent (85%)
of his Base Salary in effect for such year (the “Target Bonus”), and his actual annual bonus may
range from 0% to 170% of Base Salary (i.e., a maximum possible bonus of two times the Target
Bonus), and will be determined based upon (i) the achievement of certain corporate performance
goals, as may be established and approved by from time to time by the Compensation Committee of the
Board, and (ii) the achievement of personal performance goals as may be established by Executive’s
immediate supervisor. Executive’s annual bonus for calendar year 2006 will be prorated between the
time he spent as Vice-President for the Michigan Market Area (using the applicable financial and
operational performance objectives, salary, and target bonus) and the time he spent as Senior Vice
President, Midwest Group. The annual bonus for calendar year 2006 will be paid in 2007, if earned,
at the same time as similarly situated executive employees receive or would otherwise receive their
bonuses, subject to the terms of the annual incentive program generally applicable to similarly
situated employees.

     (c) Benefit Plans and Vacation. Subject to the terms of such plans, Executive shall be
eligible to participate in or receive benefits under any pension plan, profit sharing plan, salary
deferral plan, medical and dental benefits plan, life insurance plan, short-term and long-term
disability plans, or any other health, welfare or fringe benefit plan, generally made available by
the Company to similarly-situated executive employees. The Company shall not be obligated to
institute, maintain, or refrain from changing, amending, or discontinuing any benefit plan, or
perquisite, so long as such changes are similarly applicable to similarly situated employees
generally.

     During the Employment Period, Executive shall be entitled to vacation each year in accordance
with the Company’s policies in effect from time to time, but in no event less than four (4) weeks
paid vacation per calendar year.

     (d) Expense Reimbursement. The Company shall promptly reimburse Executive for the ordinary
and necessary business expenses incurred by Executive in the performance of the duties hereunder in
accordance with the Company’s customary practices applicable to its executive officers.

     (e) Other Perquisites. Executive shall be entitled to all perquisites provided to Senior Vice
Presidents of the Company as approved by the Compensation Committee of the Board, and as they may
exist from time to time, including the following:

2

 

	 	(i)	 	Automobile allowance at the annual rate of Twelve Thousand Dollars
($12,000.00), payable in accordance with the Company’s standard payroll practice for
its executive officers and prorated in any year that Executive does not work a full
calendar year;
	 
	 	(ii)	 	Financial planning services at actual cost, and not to exceed Fifteen Thousand
Dollars ($15,000.00) annually;
	 
	 	(iii)	 	Social organization initiation fees and dues with a benefit of a one-time
initiation fee at actual cost (not to exceed ten percent (10%) of Executive’s Base
Salary), and monthly dues at actual cost (not to exceed $500 per month); and
	 
	 	(iv)	 	An annual physical examination on a program designated by the Company.

     (f) Promotional Equity Based Incentive Award. Subject to approval by the Compensation
Committee of the Board, effective on or about the Employment Date, Executive shall be granted a
one-time, promotional award of 7,000 Restricted Stock Units pursuant to the Waste Management, Inc.
2004 Stock Incentive Plan. Such Restricted Stock Units will be subject to the restrictions imposed
by, and governed by the provisions of, the Stock Incentive Plan and the award agreement issued to
Executive in connection thereto; provided, however, that, unless earlier vested or forfeited
pursuant to such award agreement, the restrictions on this promotional award will lapse on certain
anniversary dates of the grant date of the promotional award in accordance with the following
schedule: first anniversary of the grant date — 25%; second anniversary of the grant date — 50%;
third anniversary of the grant date — 75%; fourth anniversary of the grant date — 100%.

     (g) Initial Office Location and Relocation. From the Employment Date until such time as
Executive’s daughter graduates from high school, Executive will maintain his residence in Michigan.
Following that time, Executive will plan to relocate his residence to the Chicago, Illinois area.
Executive’s relocation of his residence from Michigan to the Chicago, Illinois area will be
eligible for coverage under the Company’s relocation plan. Any apartment or other residence
maintained by Executive in Chicago prior to his relocation will be at Executive’s sole expense.

     5. Termination of Employment.

     Executive’s employment hereunder may be terminated during the Employment Period under the
following circumstances:

     (a) Death. Executive’s employment hereunder shall terminate upon Executive’s death.

     (b) Total Disability. The Company may terminate Executive’s employment hereunder upon
Executive becoming “Totally Disabled.” For purposes of this Agreement, Executive shall be
considered “Totally Disabled” if Executive has been physically or mentally incapacitated so as to
render Executive incapable of performing the essential functions of

3

 

Executive’s position with or without reasonable accommodation. Executive’s receipt of
disability benefits under the Company’s long-term disability plan or receipt of Social Security
disability benefits shall be deemed conclusive evidence of Total Disability for purpose of this
Agreement.

     (c) Termination by the Company for Cause. The Company may terminate Executive’s employment
hereunder for “Cause” at any time after providing a Notice of Termination for Cause to Executive.

	 	(i)	 	For purposes of this Agreement, the term “Cause” means any of the following:
(A) willful or deliberate and continual refusal to perform Executive’s employment
duties reasonably requested by the Company after receipt of written notice to Executive
of such failure to perform, specifying such failure (other than as a result of
Executive’s sickness, illness or injury) and Executive fails to cure such
nonperformance within ten (10) days of receipt of said written notice; (B) breach of
any statutory or common law duty of loyalty to the Company; (C) has been convicted of,
or pleaded nolo contendre to, any felony; (D) willfully or intentionally caused
material injury to the Company, its property, or its assets; (E) disclosed to
unauthorized person(s) proprietary or confidential information of the Company; (F) any
material violation or a repeated and willful violation of Company policies or
procedures, including but not limited to, the Company’s Code of Business Conduct and
Ethics (or any successor policy) then in effect; or (G) breach of any of the covenants
set forth in Section 10 hereof.
	 
	 	(ii)	 	For purposes of this Agreement, the phrase “Notice of Termination for Cause”
shall mean a written notice that shall indicate the specific termination provision in
Section 5(c)(i) relied upon, and shall set forth in reasonable detail the facts and
circumstances which provide the basis for termination for Cause.

     (d) Voluntary Termination by Executive. Executive may terminate his employment hereunder with
or without Good Reason at any time upon written notice to the Company.

	 	(i)	 	A termination for “Good Reason” means a resignation of employment by Executive
by written notice (“Notice of Termination for Good Reason”) given to the Company’s
Chief Executive Officer or President within ninety (90) days after the occurrence of
the Good Reason event, unless such circumstances are substantially corrected prior to
the date of termination specified in the Notice of Termination for Good Reason. For
purposes of this Agreement, “Good Reason” shall mean the occurrence or failure to cause
the occurrence, as the case may be, without Executive’s express written consent, of any
of the following circumstances: (A) the Company substantially changes Executive’s core
duties or removes Executive’s responsibility for those core duties, so as to
effectively cause Executive to no longer be performing the duties of his position
(except in each case in connection with the termination of Executive’s employment for
Death, Total Disability, or Cause, or temporarily as a result of Executive’s illness or

4

 

	 	 	 	other absence); provided that if the Company becomes a fifty percent or more
subsidiary of any other entity, Executive shall be deemed to have a substantial
change in the core duties of his position unless he is also the equivalent of a
Senior Vice-President of the Company or such other successor entity of the ultimate
parent entity; (B) removal or the non-reelection of Executive from the officer
position with the Company specified herein, or removal of Executive from any of his
then officer positions; (C) any material breach by the Company of any provision of
this Agreement, including without limitation Section 10 hereof; or (D) failure of
any successor to the Company (whether direct or indirect and whether by merger,
acquisition, consolidation or otherwise) to assume in a writing delivered to
Executive upon the assignee becoming such, the obligations of the Company hereunder.
	 
	 	(ii)	 	A “Notice of Termination for Good Reason” shall mean a notice that shall
indicate the specific termination provision relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
Termination for Good Reason. The failure by Executive to set forth in the Notice of
Termination for Good Reason any facts or circumstances which contribute to the showing
of Good Reason shall not waive any right of Executive hereunder or preclude Executive
from asserting such fact or circumstance in enforcing his rights hereunder. The Notice
of Termination for Good Reason shall provide for a date of termination not less than
ten (10) nor more than sixty (60) days after the date such Notice of Termination for
Good Reason is given, provided that in the case of the events set forth in Sections
5(d)(i)(A) or (B), the date may be five (5) business days after the giving of such
notice. The Company, at its sole discretion, may waive this requirement.

     (e) Termination by the Company without Cause. The Company may terminate Executive’s
employment hereunder without Cause at any time upon written notice to Executive.

     (f) Effect of Termination. Upon any termination of employment for any reason, Executive shall
immediately resign from all Board memberships and other positions with the Company or any of its
subsidiaries held by him at such time.

     6. Compensation Following Termination of Employment.

     In the event that Executive’s employment hereunder is terminated in a manner as set forth in
Section 5 above, Executive shall be entitled to the compensation and benefits provided under this
Section 6, in each case subject to potential reduction as may be required by Section 23, as
applicable to the form of termination:

     (a) Termination by Reason of Death. In the event that Executive’s employment is terminated by
reason of Executive’s death, the Company shall pay the following amounts to Executive’s beneficiary
or estate:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to the date of death,

5

 

	 	 	 	any accrued but unpaid expenses required to be reimbursed under this Agreement, any
vacation accrued to the date of termination, any earned but unpaid bonuses for any
prior calendar year, and, to the extent not otherwise paid, a pro-rata bonus or
incentive compensation payment for the current calendar year to the extent payments
are awarded to senior executives of the Company and paid at the same time as senior
executives are paid.
	 
	 	(ii)	 	Any benefits to which Executive may be entitled pursuant to the plans, policies
and arrangements (including those referred to in Section 4(c) hereof), as determined
and paid in accordance with the terms of such plans, policies and arrangements.

     (b) Termination by Reason of Total Disability. In the event that Executive’s employment is
terminated by the Company by reason of Executive’s Total Disability (as determined in accordance
with Section 5(b)), the Company shall pay the following amounts to Executive:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to the date of
termination, any accrued but unpaid expenses required to be reimbursed under this
Agreement, any vacation accrued to the date of termination, and any earned but unpaid
bonuses for any prior calendar year. Executive shall also be eligible for a pro-rata
bonus or incentive compensation payment for the current calendar year to the extent
such awards are made to senior executives of the Company for the year in which
Executive is terminated, and to the extent not otherwise paid to Executive.
	 
	 	(ii)	 	Any benefits to which Executive may be entitled pursuant to the plans, policies
and arrangements (including those referred to in Section 4(c) hereof) shall be
determined and paid in accordance with the terms of such plans, policies and
arrangements.

     (c) Termination for Cause. In the event that Executive’s employment is terminated by the
Company for Cause, the Company shall pay the following amounts to Executive:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to the date of
termination, any accrued but unpaid expenses required to be reimbursed under this
Agreement, any vacation accrued to the date of termination, and any earned but unpaid
bonuses for any prior calendar year.
	 
	 	(ii)	 	Any benefits to which Executive may be entitled pursuant to the plans, policies
and arrangements (including those referred to in Section 4(c) hereof up to the date of
termination) shall be determined and paid in accordance with the terms of such plans,
policies and arrangements.

     (d) Voluntary Termination by Executive. In the event that Executive voluntarily terminates
employment other than for Good Reason, the Company shall pay the following

6

 

amounts to Executive:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to the date of
termination, any accrued but unpaid expenses required to be reimbursed under this
Agreement, any vacation accrued to the date of termination, and any earned but unpaid
bonuses for any prior calendar year.
	 
	 	(ii)	 	Any benefits to which Executive may be entitled pursuant to the plans, policies
and arrangements (including those referred to in Section 4(c) hereof up to the date of
termination) shall be determined and paid in accordance with the terms of such plans,
policies and arrangements.

     (e) Termination by the Company Without Cause Outside a Change in Control Period; Termination
by Executive for Good Reason Outside a Change in Control Period. In the event that Executive’s
employment is terminated by the Company outside a Change in Control Period (as defined in Section
7) for reasons other than death, Total Disability or Cause, or Executive terminates his employment
for Good Reason outside of a Change in Control Period, the Company shall pay the following amounts
to Executive:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to the date of
termination, any accrued but unpaid expenses required to be reimbursed under this
Agreement, any vacation accrued to the date of termination, and any earned but unpaid
bonuses for any prior calendar year.
	 
	 	(ii)	 	Any benefits to which Executive may be entitled pursuant to the plans, policies
and arrangements referred to in Section 4(c) hereof shall be determined and paid in
accordance with the terms of such plans, policies and arrangements.
	 
	 	(iii)	 	Subject to Executive’s execution of the Release (as defined in Section 7), an
amount equal to two times the sum of Executive’s Base Salary plus his Target Annual
Bonus (in each case, as then in effect), of which one-half shall be paid in a lump sum
within ten (10) days after such termination and one-half shall be paid during the two
(2) year period beginning on the date of Executive’s termination and shall be paid at
the same time and in the same manner as Base Salary would have been paid if Executive
had remained in active employment until the end of such period.
	 
	 	(iv)	 	Subject to Executive’s execution of the Release (as defined in Section 7), the
Company at its expense will continue for Executive and Executive’s spouse and
dependents, all health benefit plans, programs or arrangements, whether group or
individual, disability, and other benefit plans, in which Executive was entitled to
participate at any time during the twelve-month period prior to the date of
termination, until the earliest to occur of (A) two years after the date of
termination; (B) Executive’s death (provided that benefits provided to Executive’s
spouse and dependents shall not terminate upon Executive’s death); or (C) with respect
to any particular plan, program or arrangement, the date Executive

7

 

	 	 	 	becomes eligible to participate in a comparable benefit provided by a subsequent
employer. In the event that Executive’s continued participation in any such Company
plan, program, or arrangement is prohibited, the Company will arrange to provide
Executive with benefits substantially similar to those which Executive would have
been entitled to receive under such plan, program, or arrangement, for such period
on a basis which provides Executive with no additional after tax cost.
	 
	 	(v)	 	Subject to Executive’s execution of the Release (as defined in Section 7),
Executive shall be eligible for a bonus or incentive compensation payment, at the same
time, on the same basis, and to the same extent payments are made to senior executives
of the Company, pro-rated for the fiscal year in which Executive is terminated.

     (f) Suspension and Refund of Termination Benefits for Subsequently Discovered Cause.
Notwithstanding any provision of this Agreement to the contrary, if within one (1) year of
termination of employment of Executive by the Company for any reason other than for Cause, it is
determined by Company that Executive could have been terminated for Cause then, to the extent
permitted by law:

	 	(i)	 	the Company may elect to cancel any and all payments of any benefits otherwise
due Executive, but not yet paid, under this Agreement or otherwise; and
	 
	 	(ii)	 	Executive will refund to the Company any amounts, plus interest, previously
paid by Company to Executive pursuant to Subsections 6(e)(iii), 6(e)(iv) or 6(e)(v).

     7. Resignation by Executive for Good Reason or Termination by Company Without Cause During a
Change in Control Period.

     (a) Certain Terminations During a Change in Control Period. Subject to potential reduction as
may be required by Section 23, in the event a Change in Control occurs and (x) Executive terminates
his employment for Good Reason during a Change in Control Period , or (y) the Company terminates
Executive’s employment without Cause (and for reason other than Death of Total Disability) during a
Change in Control Period, the Company shall, subject to Executive’s execution of the Release (as
defined in this Section 7), pay the following amounts to Executive:

	 	(i)	 	The payments and benefits provided for in Section 6(e), except that (A) the
amount and period with respect to which severance is calculated pursuant to Section
6(e)(iii) will be three (3) years and the amount shall be paid in a lump-sum and (B)
the benefit continuation period in Section 6(e)(iv) shall be for three (3) years.
	 
	 	(ii)	 	Executive shall also receive a bonus or incentive compensation payment for the
calendar year of the termination, payable at 100% of the maximum bonus available to
Executive, pro-rated as of the effective date of the termination. Such bonus payment
shall be payable within five (5) days after the effective date of

8

 

	 	 	 	Executive’s termination. Except as may be provided under this Section 7 or under
the terms of any incentive compensation, employee benefit, or fringe benefit plan
applicable to Executive at the time of Executive’s termination of employment,
Executive shall have no right to receive any other compensation, or to participate
in any other plan, arrangement or benefit, with respect to future periods after such
resignation or termination.

     (b) Certain Definitions.

	 	(i)	 	For purposes of this Agreement, “Change in Control” means the first to occur on
or after the date on which this Agreement is first signed, the occurrence of any of the
following events:

(A) any Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing twenty-five percent (25%) or more of the
combined voting power of the Company’s then outstanding voting securities;

(B) the following individuals cease for any reason to constitute a majority of the
number of directors then serving: individuals who, on the Commencement Date,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election contest,
including but not limited to a consent solicitation, relating or the election of
directors of the Company) whose appointment or election by the Board or nomination
for election by the Company’s stockholders was approved or recommended by a vote of
at least two-thirds (2/3rds) of the directors then still in office who either were
directors on the Commencement Date or whose appointment, election or nomination for
election was previously so approved or recommended (the “Incumbent Board”);

(C) there is a consummated merger or consolidation of the Company with any other
corporation, other than (1) a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving or parent entity) more than fifty percent (50%) of the
combined voting power of the voting securities of the Company or such surviving or
parent entity outstanding immediately after such merger or consolidation or (2) a
merger or consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no Person, directly or indirectly, acquired
twenty-five percent (25%) or more of the combined voting power of the Company’s then
outstanding securities; or

(D) the stockholders of the Company approve a plan of complete liquidation of the
Company or there is consummated an agreement for the sale or disposition by the
Company of all or substantially all of the Company’s assets (or any transaction
having a similar effect), other than a sale or disposition by the Company of all or
substantially all of the Company’s assets to an entity, at least fifty percent (50%)
of the combined voting power of the voting securities of

9

 

which are owned by stockholders of the Company in substantially the same proportions
as their ownership of the Company immediately prior to such sale.

	 	(ii)	 	For purposes of this Section 7, “Beneficial Owner” shall have the meaning set
forth in Rule 13d-3 under the Exchange Act;
	 
	 	(iii)	 	For purposes of this Agreement, “Change in Control Period” means the period
commencing on the date occurring six months immediately prior to the date on which a
Change in Control occurs and ending on the second anniversary of the date on which a
Change in Control occurs.
	 
	 	(iv)	 	For purposes of this Agreement, “Exchange Act’ means the Securities and
Exchange Act of 1934, as amended from time to time;
	 
	 	(v)	 	For purposes of this Section 7, “Person” shall have the meaning set forth in
Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (1) the Company, (2) a trustee or
other fiduciary holding securities under an employee benefit plan of the Company, (3)
an employee benefit plan of the Company, (4) an underwriter temporarily holding
securities pursuant to an offering of such securities or (5) a corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of shares of Common Stock of the Company.
	 
	 	(vi)	 	For purposes of this Agreement, “Release” means that specific document which
the Company shall present to Executive for consideration and execution after any
termination of employment pursuant to Section 5(e) and Section 6(e), wherein if he
agrees to such, he will irrevocably and unconditionally release and forever discharge
the Company, it subsidiaries, affiliates and related parties from any and all causes of
action which Executive at that time had or may have had against the Company (excluding
any claim for indemnity under this Agreement, any claim under state workers’
compensation or unemployment laws, or any claim under COBRA).

     8. No Other Benefits or Compensation. Except as may be provided under this Agreement, or
under the terms of any incentive compensation, employee benefit, or fringe benefit plan applicable
to Executive at the time of Executive’s termination or resignation, Executive shall have no right
to receive any other compensation, or to participate in any other plan, arrangement or benefit,
with respect to future periods after such termination or resignation.

10

 

     9. No Mitigation; No Set-Off. In the event of any termination of employment hereunder,
Executive shall be under no obligation to seek other employment, and there shall be no offset
against any amounts due Executive under this Agreement on account of any remuneration attributable
to any subsequent employment that Executive may obtain. The amounts payable hereunder shall not be
subject to setoff, counterclaim, recoupment, defense or other right which the Company may have
against Executive or others, except upon obtaining by the Company of a final non-appealable
judgment against Executive.

     10. Covenants

     (a) Company Property. All written materials, records, data, and other documents prepared or
possessed by Executive during Executive’s employment with the Company are the Company’s property.
All information, ideas, concepts, improvements, discoveries, and inventions that are conceived,
made, developed, or acquired by Executive individually or in conjunction with others during
Executive’s employment (whether during business hours and whether on the Company’s premises or
otherwise) which relate to the Company’s business, products, or services are the Company’s sole and
exclusive property. All memoranda, notes, records, files, correspondence, drawings, manuals,
models, specifications, computer programs, maps, and all other documents, data, or materials of any
type embodying such information, ideas, concepts, improvements, discoveries, and inventions are the
Company’s property. At the termination of Executive’s employment with the Company for any reason,
Executive shall return all of the Company’s documents, data, or other Company property to the
Company.

     (b) Confidential Information; Non-Disclosure. Executive acknowledges that the business of the
Company is highly competitive and that the Company has provided and will continue to provide
Executive with access to “Confidential Information” relating to the business of the Company and its
affiliates.

     For purposes of this Agreement, “Confidential Information” means and includes the Company’s
confidential and/or proprietary information and/or trade secrets that have been developed or used
and/or will be developed and that cannot be obtained readily by third parties from outside sources.
Confidential Information includes, by way of example and without limitation, the following
information regarding customers, employees, contractors, and the industry not generally known to
the public; strategies, methods, books, records, and documents; technical information concerning
products, equipment, services, and processes; procurement procedures and pricing techniques; the
names of and other information concerning customers, investors, and business affiliates (such as
contact name, service provided, pricing for that customer, type and amount of services used,
credit and financial data, and/or other information relating to the Company’s relationship with
that customer); pricing strategies and price curves; positions, plans, and strategies for expansion
or acquisitions; budgets; customer lists; research; weather data; financial and sales data; trading
methodologies and terms; evaluations, opinions, and interpretations of information and data;
marketing and merchandising techniques; prospective customers’ names and marks; grids and maps;
electronic databases; models; specifications; computer programs; internal business records;
contracts benefiting or obligating the Company; bids or proposals submitted to any third party;
technologies and methods; training methods and training processes; organizational structure;
personnel information, including

11

 

salaries of personnel; payment amounts or rates paid to consultants or other service
providers; and other such confidential or proprietary information. Information need not qualify as
a trade secret to be protected as Confidential Information under this Agreement, and the authorized
and controlled disclosure of Confidential Information to authorized parties by Company in the
pursuit of its business will not cause the information to lose its protected status under this
Agreement. Executive acknowledges that this Confidential Information constitutes a valuable,
special, and unique asset used by the Company or its affiliates in their businesses to obtain a
competitive advantage over their competitors. Executive further acknowledges that protection of
such Confidential Information against unauthorized disclosure and use is of critical importance to
the Company and its affiliates in maintaining their competitive position.

     Executive has and will continue to have access to, or knowledge of, Confidential Information
of third parties, such as actual and potential customers, suppliers, partners, joint venturers,
investors, financing sources, and the like, of the Company and its affiliates.

     The Company also agrees to provide Executive with one or more of the following: access to
Confidential Information; specialized training regarding the Company’s methodologies and business
strategies, and/or support in the development of goodwill such as introductions, information and
reimbursement of customer development expenses consistent with Company policy. The foregoing is
not contingent on continued employment, but is contingent upon Executive’s use of the Confidential
Information access, specialized training, and goodwill support provided by Company for the
exclusive benefit of the Company and upon Executive’s full compliance with the restrictions on
Executive’s conduct provided for in this Agreement.

     In addition to the requirements set forth in Section 5(c)(i), Executive agrees that Executive
will not after Executive’s employment with the Company, make any unauthorized disclosure of any
then Confidential Information or specialized training of the Company or its affiliates, or make any
use thereof, except in the carrying out of his employment responsibilities hereunder. Executive
also agrees to preserve and protect the confidentiality of third party Confidential Information to
the same extent, and on the same basis, as the Company’s Confidential Information.

     (c) Unfair Competition Restrictions. The Company agrees to and shall provide Executive with
immediate access to Confidential Information. Ancillary to the rights provided to Executive
following employment termination, the Company’s provision of Confidential Information, specialized
training, and/or goodwill support to Executive, and Executive’s agreements, regarding the use of
same, and in order to protect the value of the above-referenced stock options, any restricted
stock, training, goodwill support and/or the Confidential Information described above, the Company
and Executive agree to the following provisions against unfair competition. Executive agrees that
for a period of two (2) years following the termination of employment for any reason (“Restricted
Term”), Executive will not, directly or indirectly, for Executive or for others, anywhere in the
United States (including all parishes in Louisiana, and Puerto Rico) (the “Restricted Area”) do the
following, unless expressly authorized to do so in writing by the Chief Executive Officer of the
Company:

12

 

Engage in, or assist any person, entity, or business engaged in, the
selling or providing of products or services that would displace the
products or services that (i) the Company is currently in the
business of providing and was in the business of providing, or was
planning to be in the business of providing, at the time Executive
was employed with the Company, and (ii) that Executive had
involvement in or received Confidential Information about in the
course of employment; the foregoing is expressly understood to
include, without limitation, the business of the collection,
transfer, recycling and resource recovery, or disposal of solid
waste, hazardous or other waste, including the operation of
waste-to-energy facilities.

     It is further agreed that during the Restricted Term, Executive cannot engage in any of the
enumerated prohibited activities in the Restricted Area by means of telephone, telecommunications,
satellite communications, correspondence, or other contact from outside the Restricted Area.
Executive further understands that the foregoing restrictions may limit his ability to engage in
certain businesses during the Restricted Term, but acknowledges that these restrictions are
necessary to protect the Confidential Information the Company has provided to Executive.

     A failure to comply with the foregoing restrictions will create a presumption that Executive
is engaging in unfair competition. Executive agrees that this Section defining unfair competition
with the Company does not prevent Executive from using and offering the skills that Executive
possessed prior to receiving access to Confidential Information, confidential training, and
knowledge from the Company. This Agreement creates an advance approval process, and nothing
herein is intended, or will be construed as, a general restriction against the pursuit of lawful
employment in violation of any controlling state or federal laws. Executive shall be permitted to
engage in activities that would otherwise be prohibited by this covenant if such activities are
determined in the sole discretion of the Chief Executive Officer of the Company to be no material
threat to the legitimate business interests of the Company.

     (d) Non-Solicitation of Customers. For a period of two (2) years following the termination of
employment for any reason, Executive will not call on, service, or solicit competing business from
customers of the Company or its affiliates whom Executive, within the previous twelve (12) months,
(i) had or made contact with, or (ii) had access to information and files about, or induce or
encourage any such customer or other source of ongoing business to stop doing business with
Company.

     (e) Non-Solicitation of Employees. During Executive’s employment, and for a period of two (2)
years following the termination of employment for any reason, Executive will not, either directly
or indirectly, call on, solicit, encourage, or induce any other employee or officer of the Company
or its affiliates whom Executive had contact with, knowledge of, or association within the course
of employment with the Company to terminate his employment, and will not assist any other person or
entity in such a solicitation.

13

 

     (f) Non-Disparagement. Executive covenants and agrees that Executive shall not engage in any
pattern of conduct that involves the making or publishing of written or oral statements or remarks
(including, without limitation, the repetition or distribution of derogatory rumors, allegations,
negative reports or comments) which are disparaging, deleterious or damaging to the integrity,
reputation or good will of the Company, its management, or of management of corporations affiliated
with the Company.

     11. Enforcement of Covenants.

     (a) Termination of Employment and Forfeiture of Compensation. Executive agrees that any
breach by Executive of any of the covenants set forth in Section 10 hereof during Executive’s
employment by the Company, shall be grounds for immediate dismissal of Executive for Cause pursuant
to Section 5(c)(i), which shall be in addition to and not exclusive of any and all other rights and
remedies the Company may have against Executive.

     (b) Right to Injunction. Executive acknowledges that a breach of the covenants set forth in
Section 10 hereof will cause irreparable damage to the Company with respect to which the Company’s
remedy at law for damages will be inadequate. Therefore, in the event of breach or anticipatory
breach of the covenants set forth in this section by Executive, Executive and the Company agree
that the Company shall be entitled to seek the following particular forms of relief, in addition to
remedies otherwise available to it at law or equity: (A) injunctions, both preliminary and
permanent, enjoining or restraining such breach or anticipatory breach and Executive hereby
consents to the issuance thereof forthwith and without bond by any court of competent jurisdiction;
and (B) recovery of all reasonable sums as determined by a court of competent jurisdiction expended
and costs, including reasonable attorney’s fees, incurred by the Company to enforce the covenants
set forth in this section.

     (c) Separability of Covenants. The covenants contained in Section 10 hereof constitute a
series of separate but ancillary covenants, one for each applicable State in the United States and
the District of Columbia, and one for each applicable foreign country. If in any judicial
proceeding, a court shall hold that any of the covenants set forth in Section 10 exceed the time,
geographic, or occupational limitations permitted by applicable laws, Executive and the Company
agree that such provisions shall and are hereby reformed to the maximum time, geographic, or
occupational limitations permitted by such laws. Further, in the event a court shall hold
unenforceable any of the separate covenants deemed included herein, then such unenforceable
covenant or covenants shall be deemed eliminated from the provisions of this Agreement for the
purpose of such proceeding to the extent necessary to permit the remaining separate covenants to be
enforced in such proceeding. Executive and the Company further agree that the covenants in Section
10 shall each be construed as a separate agreement independent of any other provisions of this
Agreement, and the existence of any claim or cause of action by Executive against the Company
whether predicated on this Agreement or otherwise, shall not constitute a defense to the
enforcement by the Company of any of the covenants of Section 10.

     12. Indemnification.

     The Company shall indemnify and hold harmless Executive to the fullest extent permitted

14

 

by Delaware law for any action or inaction of Executive while serving as an officer and
director of the Company or, at the Company’s request, as an officer or director of any other entity
or as a fiduciary of any benefit plan. This provision includes the obligation and undertaking of
Executive to reimburse the Company for any fees advanced by the Company on behalf of Executive
should it later be determined that Executive was not entitled to have such fees advanced by the
Company under Delaware law. The Company shall cover Executive under directors and officers
liability insurance both during and, while potential liability exists, after the Employment Period
in the same amount and to the same extent as the Company covers its other officers and directors.

     13. Arbitration.

     Except with respect to enforcement of the covenants contained in Section 11 herein, the
parties agree that any dispute relating to this Agreement, or to the breach of this Agreement,
arising between Executive and the Company shall be settled by arbitration in accordance with the
Federal Arbitration Act and the commercial arbitration rules of the American Arbitration
Association (“AAA”), or any other mutually agreed upon arbitration service. The arbitration
proceeding, including the rendering of an award, shall take place in Houston, Texas, and shall be
administered by the AAA (or any other mutually agreed upon arbitration service). The arbitrator
shall be jointly selected by the Company and Executive within thirty (30) days of the notice of
dispute, or if the parties cannot agree, in accordance with the commercial arbitration rules of the
AAA (or any other mutually agreed upon arbitration service). All fees and expenses associated with
the arbitration shall be borne equally by Executive and the Company during the arbitration, pending
final decision by the arbitrator as to who should bear fees, unless otherwise ordered by the
arbitrator. The arbitrator shall not be authorized to create a cause of action or remedy not
recognized by applicable state or federal law. The award of the arbitrator shall be final and
binding upon the parties without appeal or review, except as permitted by the arbitration laws of
the State of Texas. The award shall be enforceable through a court of law upon motion of either
party.

     14. Disputes and Payment of Attorney’s Fees.

     If at any time during the term of this Agreement or afterwards there should arise any dispute
as to the validity, interpretation or application of any term or condition of this Agreement, the
Company agrees, upon written demand by Executive (and Executive shall be entitled upon application
to any court of competent jurisdiction, to the entry of a mandatory injunction, without the
necessity of posting any bond with respect thereto, compelling the Company) to promptly provide
sums sufficient to pay on a current basis (either directly or by reimbursing Executive) Executive’s
costs and reasonable attorney’s fees (including expenses of investigation and disbursements for the
fees and expenses of experts, etc.) incurred by Executive in connection with any such dispute or
any litigation, provided that Executive shall repay any such amounts paid or advanced if Executive
is not the prevailing party with respect to at least one material claim or issue in such dispute or
litigation. The provisions of this Section 11, without implication as to any other section hereof,
shall survive the expiration or termination of this Agreement and of Executive’s employment
hereunder.

          15. Requirement of Timely Payments.

15

 

     If any amounts which are required, or determined to be paid or payable, or reimbursed or
reimbursable, to Executive under this Agreement (or any other plan, agreement, policy or
arrangement with the Company) are not so paid promptly at the times provided herein or therein,
such amounts shall accrue interest, compounded daily, at an 8% annual percentage rate, from the
date such amounts were required or determined to have been paid or payable, reimbursed or
reimbursable to Executive, until such amounts and any interest accrued thereon are finally and
fully paid, provided, however, that in no event shall the amount of interest contracted for,
charged or received hereunder, exceed the maximum non-usurious amount of interest allowed by
applicable law.

     16. Withholding of Taxes.

     The Company may withhold from any compensation and benefits payable under this Agreement all
applicable federal, state, local, or other taxes.

     17. Source of Payments.

     All payments provided under this Agreement, other than payments made pursuant to a plan which
provides otherwise, shall be paid from the general funds of the Company, and no special or separate
fund shall be established, and no other segregation of assets made, to assure payment. Executive
shall have no right, title or interest whatever in or to any investments which the Company may make
to aid the Company in meeting its obligations hereunder. To the extent that any person acquires a
right to receive payments from the Company hereunder, such right shall be no greater than the right
of an unsecured creditor of the Company.

     18. Assignment.

     Except as otherwise provided in this Agreement, this Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective heirs, representatives, successors and
assigns. This Agreement shall not be assignable by Executive (but any payments due hereunder which
would be payable at a time after Executive’s death shall be paid to Executive’s designated
beneficiary or, if none, his estate) and shall be assignable by the Company only to any financially
solvent corporation or other entity resulting from the reorganization, merger or consolidation of
the Company with any other corporation or entity or any corporation or entity to or with which the
Company’s business or substantially all of its business or assets may be sold, exchanged or
transferred, and it must be so assigned by the Company to, and accepted as binding upon it by, such
other corporation or entity in connection with any such reorganization, merger, consolidation,
sale, exchange or transfer in a writing delivered to Executive in a form reasonably acceptable to
Executive (the provisions of this sentence also being applicable to any successive such
transaction).

16

 

     19. Entire Agreement; Amendment.

     This Agreement shall supersede any and all existing oral or written agreements,
representations, or warranties between Executive and the Company or any of its subsidiaries or
affiliated entities relating to the terms of Executive’s employment by the Company. It may not be
amended except by a written agreement signed by both parties.

     20. Governing Law.

     This Agreement shall be governed by and construed in accordance with the laws of the State of
Texas applicable to agreements made and to be performed in that State, without regard to its
conflict of laws provisions.

     21. Notices.

     Any notice, consent, request or other communication made or given in connection with this
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed
by registered or certified mail, return receipt requested, or by facsimile or by hand delivery, to
those listed below at their following respective addresses or at such other address as each may
specify by notice to the others:

	 	 	 	 	 	 	 
	 

	 	To the Company:
	 	Waste Management , Inc.
	 	 
	 

	 	 	 	1001 Fannin, Suite 4000	 	 
	 

	 	 	 	Houston, Texas 77002	 	 
	 

	 	 	 	Attention: Corporate Secretary	 	 
	 
	 

	 	To Executive:
	 	At the address for Executive set forth below.	 	 

     22. Miscellaneous.

     (a) Waiver. The failure of a party to insist upon strict adherence to any term of this
Agreement on any occasion shall not be considered a waiver thereof or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

     (b) Separability. Subject to Section 11 hereof, if any term or provision of this Agreement is
declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to
be enforceable, such term or provision shall immediately become null and void, leaving the
remainder of this Agreement in full force and effect.

     (c) Headings. Section headings are used herein for convenience of reference only and shall
not affect the meaning of any provision of this Agreement.

     (d) Rules of Construction. Whenever the context so requires, the use of the singular shall be
deemed to include the plural and vice versa.

     (e) Counterparts. This Agreement may be executed in any number of counterparts,

17

 

each of which so executed shall be deemed to be an original, and such counterparts will
together constitute but one Agreement.

     23. Potential Limitation on Severance Benefits.

     (a) Maximum Severance Amount. Notwithstanding any provision in this Agreement to the
contrary, in the event of a qualifying termination (or resignation) under Section 6(e) or Section 7
of this Agreement it is determined by the Company that the present value of payments or
distributions by the Company, its subsidiaries or affiliated entities to or for the benefit of
Executive (whether paid or provided pursuant to the terms of this Agreement or otherwise)
(“Severance Benefits”) would exceed 2.99 times the sum of Executive’s then current base salary and
target bonus (the “Maximum Severance Amount”), then the aggregate present value of the Severance
Benefits provided to Executive shall be reduced by the Company to the Reduced Amount. The “Reduced
Amount” shall be an amount, expressed in present value, that maximizes the aggregate present value
of the Severance Benefits without exceeding the Maximum Severance Amount.

     (b) Calculation of Maximum Severance Amount. For purposes of determining the Maximum
Severance Amount under this Section 23, benefits included in the calculation of the Maximum
Severance Amount will include: (i) cash amounts payable by the Company in the event of termination
of Executive’s employment; and (ii) the present value of benefits or perquisites provided for
periods after termination of employment (but excluding benefits or perquisites provided to
employees generally). The calculation of the Maximum Severance Amount will not include the
following benefits: (i) payments of salary, bonus or performance award amounts that had accrued at
the time of termination; (ii) payments based on accrued qualified and non-qualified deferred
compensation plans, including retirement and savings benefits; (iii) any benefits or perquisites
provided under plans or programs applicable to employees generally; (iv) amounts paid as part of
any agreement intended to “make-whole” any forfeiture of benefits from a prior employer; (v)
amounts paid for services following termination of employment for a reasonable consulting agreement
for a period not to exceed one year; (vi) amounts paid for post-termination covenants (such as a
covenant not to compete); (vii) the value of accelerated vesting or payment of any outstanding
equity-based award; and (viii) any payment that the Board or any committee thereof determines in
good faith to be a reasonable settlement of any claim made against the Company.

     (c) Possible Further Reduction. Following application of Section 23(b), in the event that
the payment of the remaining Severance Benefits to Executive (including any payment or benefit
received in connection with a Change in Control or the termination of Executive’s employment),
would be subject (in whole or part), to any excise tax imposed under section 4999 of the Code (the
“Excise Tax”), then the cash portion of the Severance Benefits shall first be further reduced, and
the non-cash Severance Benefits shall thereafter be further reduced, to the extent necessary so
that no portion of the Severance Benefits is subject to the Excise Tax, but only if (i) the net
amount of the Severance Benefits to be received by Executive, as so additionally reduced by this
Section 23(c) (and after subtracting the net amount of federal, state and local income taxes on
such additionally reduced Severance Benefits and after taking into

18

 

account the phase out of itemized deductions and personal exemptions attributable to such
additionally reduced Severance Benefits) is greater than or equal to (ii) the net amount of the
Severance Benefits to be received by Executive without such additional reduction (but after
subtracting the net amount of federal, state and local income taxes on such Severance Benefits and
the amount of Excise Tax to which Executive would be subject in respect of such unreduced Severance
Benefits and after taking into account the phase out of itemized deductions and personal exemptions
attributable to such unreduced Severance Benefits ); provided, however, that Executive may elect to
have the non-cash portion of the Severance Benefits reduced (or eliminated) prior to any reduction
of the cash portion of the Severance Benefits.

     (d) Calculation of Excise Tax. For purposes of determining whether and the extent to which
portions of the Severance Benefits will be subject to the Excise Tax, (i) no portion of the
Severance Benefits the receipt or enjoyment of which Executive shall have waived at such time and
in such manner as not to constitute a “payment” within the meaning of section 280G(b) of the Code
shall be taken into account, (ii) no portion of the Severance Benefits shall be taken into account
which, in the opinion of tax counsel (“Tax Counsel”) who is reasonably acceptable to Executive and
selected by the accounting firm (the “Auditor”) which was, immediately prior to the Change in
Control, the Company’s independent auditor, does not constitute a “parachute payment” within the
meaning of section 280G(b)(2) of the Code (including by reason of section 280G(b)(4)(A) of the
Code) and, in calculating the Excise Tax, no portion of such Severance Benefits shall be taken into
account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services
actually rendered, within the meaning of section 280G(b)(4)(B) of the Code, in excess of the “base
amount” (as defined in section 280G(b)(3) of the Code) allocable to such reasonable compensation,
and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the
Severance Benefits shall be determined by the Auditor in accordance with the principles of sections
280G(d)(3) and (4) of the Code.

     (e) Determination of Present Value. For purposes of this Section 23, the present value of
Severance Benefits shall be determined in accordance with section 280G(d)(4) of the Code.

     24. Code Section 409A.

     It is the intention of the Company and Executive that his Agreement not result in an
unfavorable tax consequences to Executive under Section 409A of the Code (“Section 409A”).
Executive consents to any amendment of this Agreement as the Company may reasonably make in
furtherance of such intention, and the Company shall promptly provide, or make available to,
Executive a copy of such amendment. Moreover, notwithstanding anything in this Agreement to the
contrary, if Executive is deemed to be a “specified employee” for purposes of Section 409A, no
severance payment or other payments pursuant to, or contemplated by, this Agreement that would
otherwise result in excise taxes under Section 409A shall be made to Executive from the Company
until the amount of time has elapsed that is necessary to avoid incurring excise taxes under
Section 409A. Should this result in a delay of payments to Executive, on the first day any such
payments may be made without Executive incurring an excise tax pursuant to Section 409A (the “409A
Payment Date”), the Company shall begin to make such payments as described in this Agreement,
provided that any amounts that would have been payable earlier but for the application of this
Section 24, shall be paid in a lump-sum on the 409A Payment Date.”

19

 

     IN WITNESS WHEREOF, this Agreement is EXECUTED as of the date first set forth above and
effective as set forth therein.

	 	 	 	 
	/s/ Jeff Harris
 

	 	WASTE MANAGEMENT, INC. 
	Jeff Harris

	 	(The “Company”)
	(“Executive”)
	 	 	 
	 
	 	 	 
	 

	 	By: 	/s/ Jimmy LaValley
	 

	 	 	 
	Home Address

	 	 	Jimmy LaValley

Senior Vice President & Chief People Officer
	 
	 	 	 
	 

City, State, ZIP Code

	 	 	 

20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]