Document:

Exhibit
10.5.1

 

EMPLOYMENT AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the “Agreement”) made as of this 23 day of September 2009,
by and between BALLANTYNE STRONG, INC., a Delaware corporation, with its
principal offices at 4350 McKinley Street, Omaha, Nebraska 68112 (the “Company”),
and JOHN P. WILMERS, an individual, residing at 17403 Harney Street, Omaha,
Nebraska 68118 (the “Employee”).

 

RECITALS:

 

This
Agreement is made with reference to the following facts and objectives:

 

A.            The Executive Employment
Agreement dated January 23, 2003 between the Company and Employee, as
amended by Amendment Nos. 1, 2 and 3 thereto, shall be collectively referred to
herein as the “Executive Employment Agreement.”

 

B.            As Employee is approaching
retirement, the Company is taking steps to establish a succession plan and has
engaged an executive search firm in order to find a successor to fill the
position of President and Chief Executive Officer (the “Successor”).  In anticipation of
the Company employing the Successor sometime prior to December 31, 2011,
the Company and Employee desire to enter into Amendment No. 4 attached
hereto as Exhibit A (“Amendment No. 4”) to extend the Employee’s
employment and to amend the Executive Employment Agreement to commence on January 23,
2010 and to terminate on the earlier to occur of the following: (i) the
first day the Successor commences employment as the President and Chief
Executive Officer of the Company, or (ii) December 31, 2011.

 

C.            In order to promote a smooth
transition in the event the Company employs the Successor prior to December 31,
2011, the Company and Employee desire to enter into this Agreement to secure
Employee’s service as an employee in a new capacity and to provide compensation
and benefits to Employee for the period commencing on the first day the
Successor commences employment through December 31, 2011.

 

D.            This Agreement and Amendment
No. 4 will be delivered concurrently.

 

AGREEMENT:

 

NOW,
THEREFORE, in consideration of the foregoing, and mutual covenants herein
contained, the parties hereto agree as follows:

 

1.             Employment.  The Company hereby employs the Employee, and
the Employee hereby agrees to be employed by the Company, under the terms and
conditions hereinafter set forth. 
Employee’s employment with the Company shall be on an “at will” basis
which means that termination of this Agreement may be initiated by Employee or
by the Company at any time, with or without cause, with or without notice, for
any reason (not expressly prohibited by law) or no reason.

 

2.             Title and
Duties.  Employee shall have such title
as may be assigned to him by the Board of Directors.  Employee shall report directly to the
Successor, President and Chief Executive Officer of the Company.  Employee shall devote such time and attention
to the 

 

 

business of the Company as
shall be necessary to perform and complete the duties assigned to him from time
to time by the Successor or the Board of Directors.

 

3.             Term of this
Agreement.  In the
event the Company employs the Successor on or prior to December 31, 2011,
the term of this Agreement shall commence on the first day the Successor
commences employment as the President and Chief Executive Officer of the
Company.  Unless terminated earlier as
specifically provided herein, Employee’s employment with the Company under this
Agreement shall end on December 31, 2011.

 

4.             Compensation.

 

4.1           Base Compensation.  For all the services to be rendered by
Employee in any capacity hereunder, the Company shall pay Employee a salary at
the annual rate of Two Hundred Seventy Five Thousand Dollars ($275,000.00), and
in no event shall the base compensation be less than the aforesaid amount.  The compensation paid hereunder to Employee
shall be paid in accordance with the payroll practices conducted by the Company
and shall be subject to the customary withholding taxes and other employment
taxes as required with respect to compensation paid by a corporation to an
employee.

 

4.2           Effect of Termination of Employment.  Upon termination of employment for any
reason, the Employee shall be entitled to receive the base compensation accrued
but unpaid as of the date of termination. 
Upon termination of employment of the Employee by the Company for any
reason other than for cause, the Employee shall also be entitled to receive the
severance compensation and retiree medical benefits as set forth below.

 

5.             Vacation.  The Employee shall be entitled to vacation
during each 12 months of employment in accordance with the applicable Company
policy.  All vacations shall be in
addition to recognized national holidays. 
During all vacations, the Employee’s compensation and other benefits as
stated herein shall continue to be paid in full.  Such vacation shall only be taken at times
convenient for the Company.

 

6.             Other Benefits.

 

6.1           Employee Benefit Plans.  In addition to the compensation and to the
rights provided for elsewhere in this Agreement, the Employee shall be entitled
to participate in each employee benefit plan of the Company now or hereafter
adopted for the benefit of the employees of the Company, to the extent
permitted by such plans and by applicable law.

 

6.2           Retiree Medical Benefits.  The Company further agrees to continue the
Employee’s medical coverage for Employee and his eligible dependents, at the
Company’s expense, until the Employee attains age sixty-five (65), and for the
Employee’s spouse until she attains the age of sixty-five (65), even though
such events may occur after this Agreement expires.  After age sixty-five (65), the Employee and
his eligible dependents shall only be entitled to medical insurance coverage to
the extent, if any, that the Company provides such coverage for other retired
senior executives, except that the Company shall continue to provide medical
coverage for the Employee’s spouse until she attains the age of sixty-five
(65), provided the Employee is not terminated for cause.

 

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7.             Severance Compensation.  In the event Employee’s employment is
terminated prior to December 31, 2011 for any reason other than for cause
at the initiation of the Company, then the Company shall remain liable for the
base compensation payable in accordance with Section 4.1 of this
Agreement.  Such payments shall continue
until December 31, 2011 and shall constitute the sole severance benefits
payable to Employee by the Company.  The
receipt of such payments by Employee shall be conditioned upon Employee’s
continued compliance with the obligations set forth in Section 10
(Restrictive Covenants) and Employee’s execution of the Company’s standard form
of general release.

 

8.             Termination
Prior to End of the Term.

 

8.1           Termination Due to Death.  This Agreement shall be terminated
automatically upon the Employee’s death. 
In the event of termination by reason of death, (i) the Employee’s
estate shall be paid all accrued sums due and owing under Section 4 above
and any benefits provided by the Company under Section 6 above, and (ii) the
date of termination of Employee’s employment will be deemed to have occurred
for purposes of this Agreement on the end of the month in which his death
occurs.

 

8.2           Termination for Cause.

 

8.2.1        Definition of Cause.  The Company may terminate, at any time, the
Employee’s employment for cause.  The
term for “cause” for purposes of this Agreement shall mean that the Employee
did any of the following:

 

(a)           Acted dishonestly or incompetently or engaged in
willful misconduct in the performance of Employee’s duties;

 

(b)           Breached fiduciary duties owed to the Company;

 

(c)           Intentionally failed to perform reasonably assigned
duties;

 

(d)           Willfully violated any law, rule, or regulation, or
court order (other than minor traffic violations or similar offenses), or
otherwise committed any act which would have a material adverse impact on the
business of the Company; or

 

(e)           Is in breach of this Agreement and such breach is
not cured by Employee within ten (10) days’ written notice to him.

 

8.2.2        For Cause Procedure.  Employee shall be sent written notice of
termination that specifically sets forth in reasonable detail the facts and
circumstances upon which the Board of Directors believes that the Employee has
given the Company cause for termination of Employee’s employment.  Said notice shall give the Employee an
opportunity, together with legal counsel, to be heard before the Board of
Directors of the Company.  Termination
for cause shall be based on a finding by two-thirds (2/3) of the Board of
Directors (not including Employee, should he be a member of the Board of Directors),
and said Board shall specify its findings concerning said termination in
detail.  For purposes of this Subsection,
no acts, or failure to act, on the Employee’s part will be considered willful
or willfully done unless 

 

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done, or admitted to be
done, by the Employee in bad faith and without reasonable belief that the
Employee’s action or omission was in the best interest of the Company.

 

8.2.3        Conviction.  Notwithstanding the foregoing, however, any
conviction of the Employee for any criminal act involving any violence,
dishonesty, fraud, or breach of trust or other felonious behavior, shall result
in the automatic termination of Employee’s employment, without notice, and
without any of the procedures specified in Subsection 8.2 above.

 

8.2.4        Effect of For Cause Termination.  In the event that the Employee is terminated
for cause, then he shall be entitled to receive any accrued compensation that
may be due and owing him under Section 4 above, but no other benefits or
compensation whatsoever.

 

9.             Employment by a
Subsidiary.  Either the
Company or a Subsidiary may be Employee’s legal employer. For purposes of this
Agreement, any reference to Employee’s termination of employment with the
Company means termination of employment with the Company and all Subsidiaries,
and does not include a transfer of employment between any of them. The
obligations created under this Agreement are obligations of the Company. For
purposes of this paragraph, a “Subsidiary” means an entity more than fifty
percent (50%) of whose equity interests are owned directly or indirectly by the
Company.

 

10.           Restrictive Covenants.

 

10.1         Need for Protection.  Employee acknowledges that, because of his
senior executive position with the Company, his knowledge of the affairs of the
Company and his relations with its dealers, distributors and customers are such
that he could do serious damage to the financial welfare of the Company, should
he compete or assist others in competing with the business of the Company.  Consequently, and in consideration of his
continued employment with the Company, and for the benefits he is to receive
under this Agreement, and for other good and valuable consideration, the
receipt of which he hereby acknowledges, the Employee agrees as follows:

 

10.2         Confidential Information.

 

A.            Non-Disclosure.  Except as the Company may permit or direct in
writing, during the term of this Agreement and thereafter, Employee agrees that
he will never disclose to any person or entity any confidential or proprietary
information, knowledge, or data of the Company, which he may have obtained
while in the employ of the Company, relating to any customers, customer lists,
methods of distribution, sales, prices, profits, costs, contracts, inventories,
suppliers, dealers, distributors, business prospects, business methods,
manufacturing ideas, formulas, plans or techniques, research, trade secrets, or
know how of the Company.

 

B.            Return of Records.  All records, documents, software, computer
disks, and any other form of information relating to the business of the
Company, which are or were prepared or created by Employee, or which may or did
come into his possession during the term of his employment with the 

 

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Company, including any and
all copies thereof, shall be returned to or, as the case may be, shall remain
in the possession of the Company.

 

C.            Future Employment.  Nothing in this section shall limit the
Employee’s right to carry the Employee’s accumulated career knowledge and professional
skills to any future employment, subject to the specific limitations of the
foregoing provisions of this section and the respective covenants set forth
below.

 

10.3         Covenant Not To Solicit.  Employee agrees that he will not, for a
period of at least one (1) year after his employment with the Company has
terminated:

 

A.            directly or indirectly, on behalf of himself or any
person or entity, engage in, or assist any other person or entity to engage in,
the manufacture, assembly, distribution, or sale to any customer, distributor
or dealer of the Company, wherever located, of said motion picture theater
equipment, restaurant equipment, or any other type of product manufactured,
assembled distributed or sold by the Company, if said customer, distributor or
dealer is one with whom he had contact or on whose account he worked on during
the twelve (12) months prior to the termination of his employment, or,

 

B.            directly or indirectly request or advise any of the
aforesaid customers, distributors or dealers referred to in Paragraph A. above,
of this subsection, to curtail their business with the Company or to patronize
another business which is in competition with the Company, or

 

C.            directly or indirectly, on behalf of himself or any
other person or entity, request, advise, or solicit any employee of the Company
to leave that employment in order to engage in, or assist any other person or
entity to engage in, competition with the Company.

 

10.4         Survival of Covenant Not to Solicit.  It is understood and agreed that Subsection
10.3 shall be applicable and remain in full force and effect for the greater of
the remaining term of Employee’s employment under this Agreement or the one (1) year
following the date of termination, whichever occurs later.

 

10.5         Judicial Modification.  In the event that any court of law or equity
shall consider or hold any aspect of this section to be unreasonable or
otherwise unenforceable, the parties hereto agree that the aspects of this
section so found may be reduced or modified by appropriate order of the court,
and shall thereafter continue, as so modified, in full force and effect.

 

10.6         Injunctive Relief.  The parties hereto acknowledge that the
remedies at law for breach of this section will be inadequate, and the Company
shall be entitled to injunctive relief for violation thereof; provided,
however, that nothing herein shall be construed as prohibiting the Company from
pursuing any other remedies available for such breach or threatened breach,
including the recovery of damages from the Employee.

 

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11.           Inventions and Discoveries.  The Employee hereby sells, transfers and
assigns to the Company or to any person or entity designated by the Company all
of the entire right, title and interest of the Employee in and to all
inventions, ideas, disclosures and improvements, whether patented or
unpatented, and copyrightable material made or conceived by the Employee,
solely or jointly, during the term hereof which relate to the products and services
provided by the Company or which otherwise relate or pertain to the business,
functions or operations of the Company. The Employee agrees to communicate
promptly and to disclose to the Company, in such form as the Employee may be
required to do so, all information, details and data pertaining to such
inventions, ideas, disclosures and improvements and to execute and deliver to
the Company such formal transfers and assignments and such other papers and
documents as may be required of the Employee to permit the Company or any
person or entity designated by the Company to file and prosecute the patent
applications, and, as to copyrightable material, to obtain copyrights thereof.

 

12.           Modification and Waiver.  No provision of this Agreement may be
modified, waived or discharged unless that waiver, modification or discharge is
agreed to in writing by Employee and that officer as may be specifically
designated by the Board of Directors of the Company. No waiver by either party
at any time of any breach by the other party of, or compliance with, any
condition or provision of this Agreement to be performed by that other party
will be deemed a waiver of similar or dissimilar provisions or conditions at
the time or at any prior or subsequent time.

 

13.           Entire Agreement; Construction.  This Agreement contains the entire agreement
of the parties.  This Agreement
supersedes any oral agreement between Employee and the Company and any oral
representation by the Company to Employee with respect to the subject matter of
this Agreement. The validity, interpretation, construction and performance of
this Agreement will be governed by the laws of the State of Nebraska.

 

14.           Severability.  If any one or more of the provisions of this
Agreement, including but not limited to Section 10 hereof, or any word,
phrase, clause, sentence or other portion of a provision is deemed illegal or
unenforceable for any reason, that provision or portion will be modified or
deleted in such a manner as to make this Agreement as modified legal and enforceable
to the fullest extent permitted under applicable laws. The validity and
enforceability of the remaining provisions or portions will remain in full
force and effect.

 

15.           Counterparts.  This Agreement may be executed in two (2) or
more counterparts, each of which will take effect as an original and all of
which will evidence one and the same agreement.

 

16.           Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, beneficiaries,
personal representatives, successors and assigns.

 

17.           Notice.  For purposes of this Agreement, notices and
all other communications provided for in this Agreement will be in writing and
will be deemed to have been duly given when delivered or mailed by United
States registered mail, return receipt requested, postage pre-paid, addressed
to the respective addresses set forth on the first page of this Agreement,
or to that other address as either party may have furnished to the other in
writing in accordance with this 

 

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Section 17, provided
that all notices to the Company will be directed to the attention of the
Secretary of the Company, and except that notice of change of address will be
effective only upon receipt.

 

18.           Remedies of Employee.  In the event that the Employee makes any
claim or demand based upon this Agreement, or the breach thereof, the Employee
hereby agrees that the damages which he may recover shall be limited to the
maximum amount of benefits to which he could possibly be entitled under this
Agreement.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.

 

	
   

  	
  BALLANTYNE
  STRONG, INC., a Delaware corporation, “Company”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William F. Welsh, II

  
	
   

  	
  Its:

  	
  Chairman
  of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John P. Wilmers

  
	
   

  	
  JOHN
  P. WILMERS, “Employee”

  

 

7Exhibit 10.52A

 

CLEAN HARBORS, INC.

MANAGEMENT INCENTIVE
PLAN

 

[as amended and
restated on May 10, 2010]

 

1.             Purposes.

 

The purpose of the Clean
Harbors, Inc. Management Incentive Plan (the “MIP”) is to provide each
year a strong financial incentive for performance of senior managers of the
Company and its Subsidiaries (other than the Company’s Chief Executive Officer)
by making available potential Annual MIP Bonuses payable in cash based upon the
level of corporate performance or satisfaction of certain other objective goals
for the year. The Compensation Committee of the Company’s Board of Directors
(the “Committee”) shall be responsible for determining the terms and potential
amounts of such Annual MIP Bonuses.

 

2.             Definitions in Last Section.

 

Unless defined where the
term first appears in the MIP, capitalized terms shall have the respective meanings
set forth in Section 6.

 

3.             Potential MIP Bonuses.

 

(a)           Establishment of Potential Annual MIP Bonuses.    On or before the 90th day of each Plan
Year, the Committee shall determine and set forth in writing (i) the
Performance Criteria for such Plan Year, and, where deemed appropriate by the
Committee, a Threshold, Target and Maximum Level of Achievement for each such
Performance Criteria, and (ii) the respective amounts of Annual MIP Bonuses
(which shall be expressed as a percentage of each Participant’s Base
Compensation for such Plan Year) which can potentially be earned based on
attainment of each such Level of Achievement. Each of the Performance Criteria and
the Levels of Achievement shall be objective such that a third party having
knowledge of the relevant facts could determine (1) whether or not the
Performance Criteria at each such Level of Achievement has been achieved and (2) the
total amount of the Annual MIP Bonus (if any) for each Plan Year (expressed as
a percentage of each Participant’s Base Compensation for such Plan Year) which
has been earned based on such performance. To the extent that the Committee determines
following the establishment of such Performance Criteria and Levels of
Achievement for any Plan Year that a change (either an increase or a decrease) is
appropriate in order to adjust for effects of extraordinary events (such as a
material acquisition or change in accounting methods) as determined under
generally accepted accounting principles (GAAP), which affect the calculation
of such Criteria or Levels and which become effective during such Plan Year,
the Committee shall have authority to make such change by setting forth the
revised terms thereof in writing. 
Furthermore, in the case of each Participant who is a member of the
Executive Staff and to whom the 

 

1

 

Committee
determines that potential payment of a Supplemental Executive Incentive Bonus
is appropriate, the Committee shall have authority to award a Supplemental
Executive Incentive Bonus of up to a specified percentage of Base Compensation
if such Participant meets or exceeds during a Plan Year the Personal Goals which
are established by the Committee for such Participant on or before the 90th day of such Plan Year
(or within 30 days after a Participant becomes a member of the Executive Staff
during such Plan Year).

 

(b)           Determination and Certification of Annual
MIP Bonuses.    Prior
to the payment date for each Plan Year which is described in Section 3(e) below,
the Committee shall determine and certify in writing to the Board (i) whether
or not each of the Performance Criteria for such Plan Year has been satisfied
and, if so, at what Level of Achievement, (ii) whether or not any Personal
Goals established for any Participant for such Plan Year have been met, and (iii) the
amount, if any, of the total Annual MIP Bonus payable for such Plan Year to each
of the Participants (which shall be expressed as a percentage of such
Participant’s Base Compensation for such Plan Year). The amount of any Annual MIP
Bonus, as so certified by the Committee, shall be communicated in writing to each
Participant and shall be payable to such Participant as provided in Section 3(e).

 

(c)           Definition of Accounting Terms.   Unless otherwise so determined by the
Committee and reflected in the terms of the potential Annual MIP Bonus
established pursuant to Section 3(a), accounting terms used by the
Committee in establishing the Performance Criteria, Levels of Achievement and
Personal Goals shall be defined, and the results based thereon shall be
measured, in accordance with generally accepted accounting principles as
applied by the Company in preparing its consolidated financial statements and
related financial disclosures for the Plan Year, as included in its reports
filed with the Securities and Exchange Commission.

 

(d)           Employment Requirement for Annual MIP Bonus
Payments and Exceptions Thereto.  In order to be eligible to receive an Annual
Incentive Bonus under this MIP for any Plan Year, a Participant must be
employed by the Company or a Subsidiary both (i) on the last day of such
Plan Year, and (ii) except in the case of a termination of employment due
to death, disability or a layoff (but not including either voluntary
termination or termination for “cause” as determined by the Committee) after
the last day of such Plan Year, on the date when the Annual MIP Bonus is paid.

 

(e)           Time of Payment.  Except as provided in this Section 3(e),
any Annual MIP Bonus to which a Participant becomes entitled under Section 3
with respect to a Plan Year shall be paid in a lump sum cash payment as soon as
practicable after the amount thereof is determined by the Committee, but not
later than the March 15th immediately following
completion of the Plan Year.

 

4.             Administration.

 

The MIP shall be
administered by the Committee. The Committee shall have the authority in its
sole discretion, subject to and not inconsistent with the express provisions

 

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of the MIP, to administer
the MIP and to exercise all the powers and authorities either specifically
granted to it under the MIP or necessary or advisable in the administration of
the MIP including, without limitation, to construe and interpret the MIP, to
prescribe, amend and rescind rules and regulations relating to the MIP,
and to make all other determinations deemed necessary or advisable for the
administration of the MIP.

 

The Committee may appoint a
chairperson and a secretary and may make such rules and regulations for
the conduct of its business as it shall deem advisable, and shall keep minutes
of its meetings. All determinations of the Committee shall be made by a
majority of its members either present in person or participating by conference
telephone at a meeting or by unanimous written consent. The Committee may
delegate to one or more of its members or to one or more agents such
administrative duties as it may deem advisable, and the Committee or any person
to whom it has delegated duties as aforesaid may employ one or more persons to
render advice with respect to any responsibility the Committee or such person
may have under the MIP. All decisions, determinations and interpretations of
the Committee shall be final and binding on all persons, including the Company,
any Participant (or any person claiming any rights under the MIP from or
through any Participant) and any shareholder.

 

No member of the Committee
shall be liable for any action taken or determination made in good faith with
respect to the MIP or any Annual MIP Bonus hereunder.

 

5.             General Provisions.

 

(a)           No Right to Continued Employment.    Nothing in the MIP or in any potential
Annual MIP Bonus hereunder shall confer upon any Participant the right to
continue in the employ of the Company or any Subsidiary in any capacity or to
be entitled to any remuneration or benefits not set forth in the MIP or to
interfere with or limit in any way the right of the Company or any Subsidiary to
terminate such Participant’s employment.

 

(b)           Withholding Taxes.    The Company shall deduct from all
payments under the MIP any taxes required to be withheld by federal, state or
local governments.

 

(c)           Amendment and Termination of the MIP.    The Board or the Committee may at
any time and from time to time alter, amend, suspend, or terminate the MIP in
whole or in part. Additionally, the Committee may make such amendments as it
deems necessary to comply with any applicable laws, rules and regulations.

 

(d)           Participant Rights.    No Participant in the MIP for a
particular Plan Year shall have any claim to be granted any Annual MIP Bonus
under the MIP for any subsequent Plan Year. Furthermore, there is no obligation
for uniformity of treatment of Participants in the event that more than one
Participant shall potentially be entitled to receive an Annual MIP Bonus with
respect to any Plan Year or any subsequent Plan Year.

 

(e)           Unfunded Status of Annual Incentive Bonuses.    The MIP is intended to constitute
an “unfunded” plan for incentive compensation. With respect to any payments
which at any time are not yet made to a Participant with respect to an Annual MIP
Bonus, 

 

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nothing
contained in the MIP or any related document shall give any such Participant
any rights that are greater than those of a general creditor of the Company.

 

(f)            Nonalienation of Benefits.  No right or benefit
under the MIP shall be subject to anticipation, alienation, sale, assignment,
pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell,
assign, pledge, encumber, or charge the same will be void.  No potential right to receive any Annual MIP
Bonus hereunder shall in any manner be subject to any debts, contracts,
liabilities, or torts of the person entitled to such right or interest.

 

(g)           Governing Law.    The MIP and the rights of all
persons claiming hereunder shall be construed and determined in accordance with
the laws of the Commonwealth of Massachusetts without giving effect to the
choice of law principles thereof, except to the extent that such law is
preempted by federal law.

 

(h)           Effective Date.    The effective date of the Plan shall
be January 1, 2009.

 

6.             Definitions.

 

The following terms, as used
herein, have the following meanings:

 

	
  (a)

  	
  “Annual
  MIP Bonus” means any Annual MIP Bonus to which a Participant may become
  entitled pursuant to the MIP; provided, however, that the establishment by
  the Committee of a potential Annual MIP Bonus with respect to a Participant
  pursuant to Section 3(a) does not, by itself, entitle the
  Participant to payment of any such Bonus until such Bonus has been earned and
  becomes payable pursuant to other provisions hereof.

  
	
   

  	
   

  
	
  (b)

  	
  “Base
  Compensation” means the actual earned base salary which each Participant
  receives or is entitled to receive from the Company or any Subsidiary for
  such Participant’s services during any Plan Year.

  
	
   

  	
   

  
	
  (c)

  	
  “Board”
  means the Board of Directors of the Company.

  
	
   

  	
   

  
	
  (d)

  	
  “Committee”
  means the Compensation Committee of the Board, which shall consist during the
  term of the Plan of not less than two members of the Board, each of whom, at
  the time of appointment to the Committee and at all times during service as a
  member of the Committee, shall be an “independent director” within the
  meaning of the listing requirements of the primary stock exchange on which
  the common stock of the Company may then be listed.

  
	
   

  	
   

  
	
  (e)

  	
  “Company”
  means Clean Harbors, Inc., a corporation organized under the laws of the
  Commonwealth of Massachusetts, or any successor corporation. 

  
	
   

  	
   

  
	
  (f)

  	
  “EBITDA”
  means the Company’s “Adjusted EBITDA” as reported in the Company’s Annual
  Report on Form 10-K.

  

 

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  (g)

  	
  “Executive
  Staff” means those senior executive officers of the Company and its
  Subsidiaries who shall report directly to the Company’s Chief Executive
  Officer.

  
	
   

  	
   

  
	
  (h)

  	
  “Levels
  of Achievement” means a Minimum Level of Achievement, a Target Level of
  Achievement, and a Maximum Level of Achievement which may be established by
  the Committee with respect to each Performance Criteria for each Plan Year.

  
	
   

  	
   

  
	
  (i)

  	
  “Maximum
  Level of Achievement” means a specified level of achievement of a Performance
  Criteria applicable to a Plan Year which must be attained for the maximum
  portion of an Annual MIP Bonus, which is based on achievement of that
  Performance Criteria, to be earned.

  
	
   

  	
   

  
	
  (j)

  	
  “MIP”
  means this Clean Harbors, Inc. Management Incentive Plan, as amended
  from time to time.

  
	
   

  	
   

  
	
  (k)

  	
  “MIP
  EBITDA” means the Company’s EBITDA with certain adjustments established by
  the Committee for amounts which are not derived from the Company’s normal
  operations and over which the Participants in the MIP do not exercise control
  (such as acquisition and integration costs, adjustments to environmental
  liabilities, gains and losses from currency exchange rates, and changes in
  accounting principles).

  
	
   

  	
   

  
	
  (l)

  	
  “Participant”
  means an employee of the Company or any Subsidiary who shall, based on such
  employee’s potential contribution to the corporate performance of the Company
  and its Subsidiaries for any Plan Year, be selected (as evidenced by a letter
  from the Company’s Chief Executive Officer to such Participant) by the
  Company’s Chief Executive Officer (based upon advice from the Executive
  Staff) to participate in the MIP for such Plan Year.

  
	
   

  	
   

  
	
  (m)

  	
  “Performance
  Criteria” means one or more pre-established, objective measures of
  performance by the Company during a Plan Year selected by the Committee in
  its discretion to determine whether an Annual MIP Bonus has been earned in
  whole or in part. Performance Criteria may be based on one or more of the
  following: the Company’s consolidated revenues, MIP EBITDA, ratio of MIP
  EBITDA to consolidated revenues (“MIP EBITDA Margin”), earnings per share, or
  such other objective criteria as the Committee shall  deem
  appropriate.  Such Performance Criteria may
  be based on the Company’s absolute performance under such measure for the
  year and/or upon a comparison of such performance with the performance of the
  Company in a prior period or the performance of a peer group of companies.
  The Performance Criteria and related Annual MIP Bonuses may also be based
  upon the Company’s performance over either one or more Plan Years.

  
	
   

  	
   

  
	
  (n)

  	
  “Personal
  Goals” means goals applicable to a Plan Year which are established by the
  Committee on the advice of the Company’s Chief Executive Officer with respect
  to any member of the Executive Staff and which may include, in the
  Committee’s 

  

 

5

 

	
   

  	
  discretion,
  as examples and without limitation, such factors as the performance of a
  business unit of the Company or a Subsidiary for which such Participant has
  responsibility or satisfaction of other objective criteria such as hiring of
  key employees or improvement in health, safety and compliance statistics.

  
	
   

  	
   

  
	
  (o)

  	
  “Plan
  Year” means the Company’s fiscal year.

  
	
   

  	
   

  
	
  (p)

  	
  “Subsidiary”
  means any company or other entity with respect to which the Company, either
  directly or indirectly through another Subsidiary, owns a majority of the
  common stock or other equity interests or otherwise has the power to vote or
  sufficient securities to elect a majority of the directors or other managers.

  
	
   

  	
   

  
	
  (q)

  	
  “Target
  Level of Achievement” means a specified level of achievement of a Performance
  Criteria applicable to a Plan Year which must be attained for the target
  portion of an Annual MIP Bonus which is based on achievement of that
  Performance Criteria to be earned. 

  
	
   

  	
   

  
	
  (r)

  	
  “Supplemental
  Executive Incentive Bonus” means a portion of an Annual MIP Bonus to which a
  member of the Executive Staff may become entitled based on achievement by
  such member of one or more Personal Goals established by the Committee for
  such member for any Plan Year.

  
	
   

  	
   

  
	
  (s)

  	
  “Threshold
  Level of Achievement” means a minimum level of achievement of a Performance
  Criteria applicable to a Plan Year which must be attained for the minimum
  level of an Annual MIP Bonus which is based on achievement of that
  Performance Criteria to be earned.

  

 

6

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