Document:

exv10w1

 

Exhibit 10.1

October 6, 2006

 

Mr. Mark A. Kalafut

Sioux City, IA

 

Amendment to Employment Severance Agreement

 

Dear Mr. Kalafut:

     This letter memorializes our mutual agreement to amend the Employment Severance Agreement
dated October 5, 2006 between you and Terra Industries Inc. (the “Agreement”) by adding the
following Section 4A, as follows:

4A. Consulting Services/Additional Compensation

     (a) Executive shall be obligated to provide up to fifty eight-hour days of consulting
services to Company at times and upon subjects mutually agreed between the parties. Such
duties shall include transitioning duties to the Company’s new General Counsel and providing
advice on pending matters. Executive’s obligations to provide consulting services shall
terminate one year after the effective date of the Agreement.

     (b) In consideration of Executive agreeing to provide the consulting services stated
herein, the Company will provide, in addition to the Severance Pay and other benefits stated
in the Agreement, an amount equal to one-half times Executive’s current Base Salary. Such
amount shall be payable to Executive according to the provisions of Section 4(c)(ii).

     This amendment is supplemental to the Agreement and nothing herein contained shall be
construed as amending or modifying the same except as specifically provided herein.

     Please acknowledge your agreement to the terms of this letter by signing below where
indicated.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ Michael L. Bennett
 	 
	 	 	 
	 	Michael L. Bennett

President and Chief Executive Officer 	 
	 

Agreed and Accepted:

 

/s/ Mark A. Kalafut

Mark A. KalafutEX-10.1 Employment Agreement with James O'Connor

 

EXHIBIT 10.1

AMENDMENT NUMBER TWO

     This AMENDMENT NUMBER TWO (hereinafter the “Amendment”) is made and entered into as of this
10th day of October, 2006, by and between REPUBLIC SERVICES, INC., a Delaware
corporation, (hereinafter the “Company”) and JAMES E. O’CONNOR, a Florida Resident (hereinafter the
“Employee”):

RECITALS

     WHEREAS, the Company and the Employee have heretofore entered into a certain Employment
Agreement dated as of October 25, 2000 (the “Employment Agreement”); and

     WHEREAS, the Company and the Employee have heretofore entered into that certain Amendment
Number One dated as of January 31, 2003 (“Amendment Number One” and, collectively, together with
the Employment Agreement, the “Agreement”); and

     WHEREAS, the Company and the Employee wish to make further amendments to the Agreement to
reflect various changes that have been agreed to since October 25, 2000, including changes to
Employee’s compensation, all as set forth below.

AGREEMENT

     NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the Company and the Employee agree as follows:

     A. The recitals set forth above are incorporated in this Amendment by reference thereto.

     B. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to
them in the Agreement.

     C. For all purposes therein, clauses (a) and (b) of Section 2 of the Agreement are hereby
deleted, in their entirety, and replaced with the following:

     2. Compensation.

     “(a) Base Salary. In consideration for the Employee’s services
hereunder and the restrictive covenants contained herein, the Employee shall be paid
an annual base salary of $840,000 for the 2006 Fiscal Year (the “Salary” or the
“Base Salary”), payable in accordance with the Company’s customary payroll
practices. Notwithstanding the foregoing, Employee’s annual Base Salary may be
increased at anytime and from time to time to levels greater than the levels set
forth in the preceding sentence at the discretion of the Board of Directors of the
Company to reflect merit or other increases. The Base Salary for each Fiscal Year

 

 

shall become effective as of January 1 of such Fiscal year. The Employee’s Base
Salary for any Fiscal Year after 2006 shall remain as set for the 2006 Fiscal Year
unless the Board of Directors expressly provides otherwise.

     (b) Bonus. In addition to the Base Salary, the Employee shall be
eligible to receive a bonus (“Bonus”) in an amount equal to 100% of the Employee’s
Base Salary during the 2006 Fiscal Year. The Bonus shall be based on the
achievement of corporate goals and objectives as established by the Compensation
Committee of the Board of Directors. The Bonus shall be subject to escalation as
provided in the Company’s Executive Incentive Plan (the “Plan”). The achievement of
said goals and objectives shall be determined by the Compensation Committee of the
Board of Directors. With respect to any Fiscal Year during which the Employee is
employed by the Company for less than the entire Fiscal Year, the Bonus shall be
prorated for the period during which the Employee was so employed. The Bonus shall
be payable within thirty (30) days after the end of the Company’s Fiscal Year. The
term “Fiscal Year” as used herein shall mean each period of twelve (12) calendar
months commencing on January 1st of each calendar year during the Employment Period
and expiring on December 31st of such year. The maximum percentage of Base Salary
which the Employee’s Bonus for any year after the 2006 Fiscal Year may represent
shall remain as set for the 2006 Fiscal Year unless the Board of Directors expressly
provides otherwise.”

     D. For all purposes therein, Section 2 of the Agreement is hereby amended to insert the
following clause (m):

     2. Compensation.

***

     “(m) Long Term Incentive. On April 26, 2001, the Board of Directors
adopted the Republic Services, Inc. Long Term Incentive Plan, effective January 1,
2001 to provide for long term incentive cash grants for specified employees of the
Company, including the Employee. Effective January 1, 2003, the Long Term Incentive
Plan was amended, restated and renamed to the Executive Incentive Plan (as
previously defined in Section 2, clause (b), the “Plan”) to provide not only for
long term incentive cash grants but also to include the annual Bonus referred to
above. Employee has participated in the Long Term Incentive Plan and the Plan since
inception, and Employee shall be entitled to continue to participate in the Plan for
purposes of receiving long term cash incentive grants pursuant to the terms and
condition of this Agreement and the Plan.”

     E. For all purposes therein, the following Sections 21 and 22 shall be added to the Agreement:

          “21. Retirement Eligibility. For all stock option or restricted stock awards
(“Equity Awards”) and all monetary awards (including annual bonus and long-term incentive
awards and retirement contributions to the deferred compensation program) (“Monetary Awards”
and together collectively with Equity Awards, “Awards”)

2

 

granted to Employee prior to July 26, 2006 (“Prior Awards”), such Employee shall be eligible
to retire for purposes of the Prior Awards upon attaining either (a) the age of fifty-five
(55) and having completed six (6) years of service with the Company or (b) the age of
sixty-five (65) without regard to years of service with the Company (the “Original
Retirement Policy”). For all Awards granted to Employee following July 26, 2006
(“Prospective Awards”), the Original Retirement Policy shall apply provided, and only to the
extent that, the Employee shall provide the Company with not less that twelve (12) months
prior written notice of Employee’s intent to retire. Failure by Employee to provide such
written notice shall cause the Revised Retirement Policy (as hereinafter defined) to apply
to Prospective Awards, but such failure shall have no effect whatsoever on the Prior Awards,
all of which shall continue to be subject to the Original Retirement Policy. For purposes
of this Agreement, “Revised Retirement Policy” shall mean Employee has attained the age of
(x) sixty (60) and has completed fifteen (15) years of continuous service with the Company
or (y) sixty-five (65) with five (5) years of continuous service with the Company.

          22. Timing of Severance Payments. Notwithstanding anything in this Agreement
to the contrary, if Employee is deemed to be a “key employee” for purposes of Internal
Revenue Code Section 409A (“Section 409A”), no Severance Payment or other payments pursuant
to, or contemplated by, this Agreement shall be made to Employee by 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 Employee, on the first day any such
payments may be made without incurring a penalty pursuant to Section 409A (the “409A Payment
Date”), the Company shall begin to make such payments as described in this Section 22,
provided that any amounts that would have been payable earlier but for the application of
this Section 22, shall be paid in a lump-sum on the 409A Payment Date.”

     F. All other provisions or terms of the Agreement are hereby ratified and confirmed, including
but not limited to, the provisions and terms of Sections 5, 6, and 7 thereof.

[Remainder of Page Intentionally Left Blank]

[Signature Page to Follow]

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     IN WITNESS WHEREOF, the Company and the Employee have executed this Amendment effective as of
the date first written above.

	 	 	 	 	 
	REPUBLIC SERVICES, INC.,	 	EMPLOYEE:
	a Delaware corporation	 	 
	 
	 	 
	 	 
	By:
	/s/ W. Lee Nutter

	 	/s/ J.E. O’Connor
	 	 

	 	 
	Its:
	Chairman of the Compensation

	 	JAMES E. O’CONNOR
	 	Committee of the Board of Directors
	 	 

4EX-10.2 Employment Agreement with Michael Cordesma

 

EXHIBIT 10.2

AMENDMENT NUMBER ONE

     This AMENDMENT NUMBER ONE (hereinafter the “Amendment”) is made and entered into as of this
10th day of October, 2006, by and between REPUBLIC SERVICES, INC., a Delaware
corporation, (hereinafter the “Company”) and MICHAEL CORDESMAN, a Florida Resident (hereinafter the
“Employee”):

RECITALS

     WHEREAS, the Company and the Employee have heretofore entered into a certain Employment
Agreement dated as of January 31, 2003 (the “Agreement”); and

     WHEREAS, the Company and the Employee wish to make further amendments to the Agreement to
reflect various changes that have been agreed to since January 31, 2003, including changes to
Employee’s compensation, all as set forth below.

AGREEMENT

     NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the Company and the Employee agree as follows:

     A. The recitals set forth above are incorporated in this Amendment by reference thereto.

     B. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to
them in the Agreement.

     C. For all purposes therein, clauses (a) and (b) of Section 2 of the Agreement are hereby
deleted, in their entirety, and replaced with the following:

     2. Compensation.

     “(a) Base Salary. In consideration for the Employee’s services
hereunder and the restrictive covenants contained herein, the Employee shall be
paid an annual base salary of $450,000 for the 2006 Fiscal Year (the “Salary” or
the “Base Salary”), payable in accordance with the Company’s customary payroll
practices. Notwithstanding the foregoing, Employee’s annual Base Salary may be
increased at anytime and from time to time to levels greater than the levels set
forth in the preceding sentence at the discretion of the Board of Directors of the
Company to reflect merit or other increases. The Base Salary for each Fiscal Year
shall become effective as of January 1 of such Fiscal year. The Employee’s

2

 

Base Salary for any Fiscal Year after 2006 shall remain as set for the 2006
Fiscal Year unless the Board of Directors expressly provides otherwise.

     (b) Bonus. In addition to the Base Salary, the Employee shall be
eligible to receive a bonus (“Bonus”) in an amount equal to 80% of the Employee’s
Base Salary during the 2006 Fiscal Year. The Bonus shall be based on the
achievement of corporate goals and objectives as established by the Compensation
Committee of the Board of Directors. The Bonus shall be subject to escalation as
provided in the Company’s Executive Incentive Plan (the “Plan”). The achievement
of said goals and objectives shall be determined by the Compensation Committee of
the Board of Directors. With respect to any Fiscal Year during which the Employee
is employed by the Company for less than the entire Fiscal Year, the Bonus shall
be prorated for the period during which the Employee was so employed. The Bonus
shall be payable within thirty (30) days after the end of the Company’s Fiscal
Year. The term “Fiscal Year” as used herein shall mean each period of twelve (12)
calendar months commencing on January 1st of each calendar year during the
Employment Period and expiring on December 31st of such year. The maximum
percentage of Base Salary which the Employee’s Bonus for any year after the 2006
Fiscal Year may represent shall remain as set for the 2006 Fiscal Year unless the
Board of Directors expressly provides otherwise.”

     D. For all purposes therein, Section 2 of the Agreement is hereby amended to insert the
following clause (m):

     2. Compensation.

***

          “(m) Long Term Incentive. On April 26, 2001, the Board of Directors
adopted the Republic Services, Inc. Long Term Incentive Plan, effective January 1,
2001 to provide for long term incentive cash grants for specified employees of the
Company, including the Employee. Effective January 1, 2003, the Long Term
Incentive Plan was amended, restated and renamed to the Executive Incentive Plan
(as previously defined in Section 2, clause (b), the “Plan”) to provide not only
for long term incentive cash grants but also to include the annual Bonus referred
to above. Employee has participated in the Long Term Incentive Plan and the Plan
since inception, and Employee shall be entitled to continue to participate in the
Plan for purposes of receiving long term cash incentive grants pursuant to the
terms and condition of this Agreement and the Plan.”

     E. In the preparation of Employee’s Agreement, certain cross references in Section 3, clause
(3) were incorrect due to an “autonumbering” error in the word-processing software utilized to
create such document. To correct such errors, and for all purposes therein, each reference to
Sections and clauses in the Agreement shall be changed to the references set forth below:

2

 

     (a) Each reference to Section 2(a) shall be changed to Section 2(1);

     (b) Each reference to Sections 6, 7 and 13 shall be changed to Sections 7, 8 and
14, respectively.

     F. In preparation of Employee’s Agreement, a cross reference in Section 4, clause (1) was also
incorrect due to an “autonumbering” error in the word processing software utilized to create such
document. To correct such error, and for all purposes therein, the reference to Section 3(c) in
Section 4, clause (1) shall instead refer to Section 3(1). In addition, in the ultimate sentence
in that Section 4, clause (1), the letter “b” shall be replaced with the word “by”.

     G. For all purposes therein, the following Sections 21 and 22 shall be added to the Agreement:

     “21. Retirement Eligibility. For all stock option or restricted stock awards
(“Equity Awards”) and all monetary awards (including annual bonus and long-term incentive
awards and retirement contributions to the deferred compensation program) (“Monetary
Awards” and together collectively with Equity Awards, “Awards”) granted to Employee prior
to July 26, 2006 (“Prior Awards”), such Employee shall be eligible to retire for purposes
of the Prior Awards upon attaining either (a) the age of fifty-five (55) and having
completed six (6) years of service with the Company or (b) the age of sixty-five (65)
without regard to years of service with the Company (the “Original Retirement Policy”).
For all Awards granted to Employee following July 26, 2006 (“Prospective Awards”), the
Original Retirement Policy shall apply provided, and only to the extent that, the Employee
shall provide the Company with not less that twelve (12) months prior written notice of
Employee’s intent to retire. Failure by Employee to provide such written notice shall
cause the Revised Retirement Policy (as hereinafter defined) to apply to Prospective
Awards, but such failure shall have no effect whatsoever on the Prior Awards, all of which
shall continue to be subject to the Original Retirement Policy. For purposes of this
Agreement, “Revised Retirement Policy” shall mean Employee has attained the age of (x)
sixty (60) and has completed fifteen (15) years of continuous service with the Company or
(y) sixty-five (65) with five (5) years of continuous service with the Company.

     22. Timing of Severance Payments. Notwithstanding anything in this Agreement
to the contrary, if Employee is deemed to be a “key employee” for purposes of Internal
Revenue Code Section 409A (“Section 409A”), no Severance Payment or other payments pursuant
to, or contemplated by, this Agreement shall be made to Employee by 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 Employee, on the first day any such
payments may be made without incurring a penalty pursuant to Section 409A (the “409A
Payment Date”), the Company shall begin to make such payments as described in this Section
22, provided that any amounts that would have been payable earlier but for the application
of this Section 22, shall be paid in a lump-sum on the 409A Payment Date.”

3

 

     H. All other provisions or terms of the Agreement are hereby ratified and confirmed, including
but not limited to, the provisions and terms of Sections 5, 6, and 7 thereof.

     IN WITNESS WHEREOF, the Company and the Employee have executed this Amendment effective as of
the date first written above.

	 	 	 	 	 
	REPUBLIC SERVICES, INC.,	 	EMPLOYEE:
	a Delaware corporation	 	 
	 
	 	 
	 	 
	 
	 	 
	 	 
	By:
	/s/ W. Lee Nutter

	 	/s/ M. Cordesman
	 	 

	 	 
	Its:
	Chairman of the Compensation

	 	MICHAEL CORDESMAN
	 	Committee of the Board of Directors
	 	 

4

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