Document:

Exhibit 10.4

 

DEFERRAL AGREEMENT

 

THIS DEFERRAL AGREEMENT (“Agreement”) dated
as
of                        ,
is by and between Safety-Kleen HoldCo., Inc. (the “Company”) and [name]  (the
“Participant”).

 

The parties hereto, intending to be legally
bound hereby, agree to the following:

 

1.               Deferral.  The Participant has been awarded Restricted
Stock Units (“RSUs”) pursuant to the Safety-Kleen Equity Plan (the “Equity Plan”).  Subject to the terms of the Equity Plan and
the agreement evidencing the RSUs (the “RSU Agreement”), the RSUs are scheduled
to vest on the date or dates set forth on Exhibit A hereto, at which time
or times the Participant will be entitled to receive, pursuant to the terms of
the RSU Agreement, the number of shares of the Company’s Common Stock set forth
on Exhibit A next to the applicable vesting date.  Pursuant to the provisions of the
Safety-Kleen Deferred Compensation Plan (the terms of which are hereby
incorporated by reference) and this Agreement, the Participant and the Company
hereby agree that, notwithstanding the terms of the RSU Agreement, the receipt
by the Participant of such Company Common Stock will be deferred until the
Payment Date.  For purposes of this
Agreement, the “Payment Date” will be the date indicated below.

 

Please initial in one or more of the spaces
provided below, the Payment Date elected. 
If more than one date is indicated, the Payment Date shall be the
earliest to occur of the indicated dates.

 

	
   

  	
   

  	
  the date upon which the Participant’s employment or service with the
  Company and any of its Subsidiaries 

  
	
   

  	
   

  	
  terminates.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  the date upon which a Change in Control (as defined in the Equity
  Plan) occurs.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  the following date: 

  	
              

  	
  /

  	
              

  	
  /

  	
             

  	
  .

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  the date of a Public Offering (as defined in the Equity Plan) of the
  Company or any of its Subsidiaries.

  
	
   

  	
   

  	
   

  

Upon the Payment Date, the Participant shall
receive the shares of Company Common Stock in accordance with the other terms
and conditions of the RSU Agreement. However, if Participant’s employment or
service with the 

 

1

 

Company and any of its Subsidiaries is
terminated for Cause (as defined in the Equity Plan), the RSU’s in Participant’s
Investment Account will be forfeited. Capitalized terms that are used but not
defined herein shall have the meaning set forth in the Safety-Kleen Deferred
Compensation Plan (“the Deferred Compensation Plan”).

 

2.               Terms of Deferral.  As of the applicable vesting date or dates
with respect to the RSUs, the Company shall establish an unfunded Investment
Account in the Participant’s name and shall credit such Investment Account with
the number of shares of Company Common Stock which were scheduled to vest on
such date pursuant to the RSU Agreement. 
At all times prior to the Payment Date, the Investment Account shall
continue to be denominated in shares of Company Common Stock and shall not be
credited with interest during such period. 
The Investment Account shall be debited to reflect any payments made to
the Participant. By execution of this Agreement, the Participant agrees to the
terms and conditions of the Deferred Compensation Plan, and further
acknowledges that neither the Company nor any of its officers, directors or
agents have made any promise or representation with respect to the value which
the Company Common Stock may have as of a Payment Date.  The Participant acknowledges that he has been
advised by the Company to consult with his personal tax advisors prior to
executing this Agreement.

 

3.               Amendment and Duration of
the Agreement.  No
provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing signed by the
Participant and the Company.  No waiver
by either party hereto at any time of any breach of the other party hereto of,
or compliance with, any condition or provision of this Agreement to be
performed by such party will be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time.  No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have
been made by either party which are not set forth expressly in this Agreement.

 

4.               No Offset.  The payments made by the Company to the
Participant under this Agreement will not offset any severance or other
payments due to the Participant from the Company.

 

5.               Nontransferability.  The Participant will not have the right to
alienate, anticipate, commute, pledge, encumber or assign any of the benefits
or payments which he or she may expect to receive, contingently or otherwise,
under this Agreement.

 

 

2

 

6.               No Right To Continued
Employment.  Neither the
establishment of the Agreement, nor any modification thereof, nor the creation
of any fund, trust or account, nor the payment of any benefits will be
construed as giving the Participant the right to be retained in the employment
or service of the Company, any of its Subsidiaries or their respective
successors, and the Participant will remain subject to discharge to the same
extent as if this Agreement had never been executed.

 

7.               Successors.  This Agreement will be binding upon the
heirs, executors, administrators, successors and assigns of the parties,
including the Participant, present and future, and any successor to the
Company.

 

8.               Withholding Taxes.  All amounts to be paid hereunder will be paid
net of the amount of any taxes that the Company or its successor may be required
to withhold therefrom in respect of any federal, state, local or other income
or other taxes.

 

9.               Unfunded Status.  This Agreement will not be funded.  The Deferred Compensation Plan is an unfunded
plan of deferred compensation and nothing in the Deferred Compensation Plan or
this Agreement shall give the Participant, a Beneficiary or any other person
any interest of any kind in the assets of the Company or its affiliates or
create a trust or fiduciary relationship of any kind between the Company and any
such person.  The obligations hereunder
to any Participant shall be the sole responsibility of the Company and the
Participant shall have only the rights of a general unsecured creditor of the
Company with respect to amounts deferred hereunder.

 

10.         Beneficiary Designation. The
Participant may, upon execution of this Agreement, or from time to time, name
any beneficiary or beneficiaries (who may be named contingently or
successively) by whom any right under the Deferred Compensation Plan is to be
exercised in case of his death. Each designation will revoke all prior
designations by the same Participant, shall be submitted in writing to the
Committee, and will be effective only when acknowledged in writing by the
Committee.

 

	
   

  	
  I hereby designate 

  	
                                                          

  	
  as my beneficiary under this Agreement.

  

 

 

11.         Notices.  All notices and other communications under
this Agreement shall be in writing and shall be given by hand delivery to the
other party, by 

 

 

3

 

 

confirmed facsimile
transmission or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

 

If
to the Participant:

 

To the address on file with the Company

 

If
to the Company:

 

5400 Legacy Drive

Cluster 2, Building 3

Plano, Texas 75024

Attn: General Counsel

 

Either party may furnish to the other in
writing a substitute address and phone and fax numbers for delivery of notice
in accordance with Section 11. 
Notices and communications shall be effective when actually received by
the addressee.

 

12. Counterparts.  This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original but all of which
together will constitute one and the same instrument.

 

13.         Governing Law.  This Agreement and all determinations made
and actions taken pursuant hereto will be governed by the laws of the State of
Delaware without giving effect to its principles of conflict of laws.

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first above written.

 

	
   

  	
   

  	
  Safety-Kleen HoldCo., Inc.

  	
   

  	
   

  
	
   

  	
   

  	
  (“Company”)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Frederick J. Florjancic, Jr.

  	
   

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer & President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Participant] (“Participant”)

  	
   

  	
   

  

 

 

4

 

EXHIBIT “A”

 

                

 

	
                  
  

  	
  Restricted Stock Units vest on December 24, 2004

  
	
   

  	
   

  
	
                  

  	
  Restricted Stock Units vest on December 24, 2005

  
	
   

  	
   

  
	
               

  	
  Restricted Stock Units vest on December 24, 2006

  
	
   

  	
   

  
	
                  

  	
  Restricted Stock Units vest on December 24, 2007

  
	
   

  	
   

  

 

******

 

 

 

5Exhibit 10.5

 

RESTRICTED STOCK UNIT AGREEMENT

 

                                RESTRICTED STOCK
UNIT AGREEMENT (the “Agreement”) by and between Safety-Kleen HoldCo., Inc.
(the “Company”) and [              ] (the
“Grantee”), dated as of                   
(the “Date of Grant”).

 

1.                                       Definitions.  Capitalized terms which are not defined
herein shall have the meaning set forth in the Safety-Kleen Equity Plan (the “Plan”).

 

2.                                       Grant of Restricted Stock
Units.  The Company hereby grants to
the Grantee, pursuant to the Plan,                       restricted stock units (the “Restricted
Stock Units”).

 

3.                                       Vesting of Restricted Stock
Units.  Subject to the provisions of
this Agreement and the Plan and the Grantee’s continued employment or service
with the Company on the applicable vesting dates, the Restricted Stock Units
shall become vested and exercisable in four equal increments on each of the
first four anniversaries of December 24, 2003.

 

4.                                       Rights and Obligations Upon
Termination of Employment or Service.

 

(a)                                  If the Grantee’s employment
or service with the Company is terminated for Cause, the Grantee’s unvested
Restricted Stock Units shall immediately terminate.

 

(b)                                 If the Grantee’s employment
or service with the Company terminates by reason of the Grantee’s death or
Disability, then a pro-rata amount of the portion of the Restricted Stock Units
scheduled to vest in the year in which the termination occurs (based upon the
amount of service of the Grantee in such vesting year) shall vest upon such
termination and the unvested portion of the Restricted Stock Units shall
terminate upon such termination.

 

(c)                                  If the Grantee’s employment
or service with the Company is terminated by the Company other than for Cause,
then a pro-rata amount of the portion of the Restricted Stock Units scheduled
to vest in the year in which the termination occurs (based upon the amount of
service of the Grantee in such vesting year) shall vest upon such termination
and the remaining unvested portion of the Restricted Stock Units shall
immediately terminate upon such termination.

 

(d)                                 If the Grantee ‘s employment
or service with the Company  is
terminated  by the Optionee, then the
unvested portion of the Restricted Stock Units shall immediately terminate upon
such termination

 

5.                                       Payment of Restricted Stock
Units.  Unless otherwise provided
pursuant to a deferral agreement between Grantee and the Company entered into
pursuant to the authority of Section 11 of the Plan, no later than twenty
business days after

 

1

 

each vesting date (or, in the case of a termination of employment due
to the Grantee’s death or Disability or termination of the Grantee’s employment
or service by the Company other than for Cause, no later than twenty business
days after the date of Grantee’s death, Disability or termination, as the case
may be), the Company shall deliver to the Grantee (or to the Grantee’s
designated beneficiary) a number of Shares equal to the number of Restricted
Stock Units which vested on such date.

 

6.                                       Nontransferability of Restricted
Stock Units; Conditions to Transfer of Shares Acquired Pursuant to Restricted
Stock Units.  Without
limiting the provisions of the Plan and except as otherwise determined by the
Committee, the Restricted Stock Units shall not be assignable or transferable
otherwise than by a duly executed and attested will or by the laws of descent
and distribution.  As a condition
precedent to the transfer of any Shares acquired pursuant to the Restricted
Stock Units at any time prior to a Public Offering, the Grantee shall obtain
and provide to the Company the prior written agreement (in a form satisfactory
to the Committee) of any proposed transferee to the applicability of the
provisions of this Agreement, including Sections 6, 7 and 8 of this Agreement
to such transferee in the same manner as such provisions would apply to the
Grantee.  Any purported transfer in
violation of this Section 6 shall be void ab
initio and of no force or effect.

 

7.                                       Call Rights.

 

(a)                                  Call Right.  Upon and following the occurrence of any
event described in this Section 7(a) prior to a Public Offering, the
Company shall have the right to purchase (the “Call Right”), in its sole
discretion, any or all of the Shares then held or thereafter acquired by the
Grantee pursuant to Restricted Stock Units under the terms and conditions set
forth in Section 8 hereof (including Restricted Stock Units which have
been deferred pursuant to the Company’s Deferred Compensation Plan).  The events which cause the Call Right to
arise are:

 

(i)                                     termination of the Grantee’s
employment or service with the Company by the Company for Cause; and

 

(ii)                                  termination of the Grantee’s
employment or service for any reason other than Cause.

 

(b)                                 Notwithstanding the
foregoing, there shall be no Call Rights with respect to Shares acquired
pursuant to the Restricted Stock Units following a Public Offering.

 

8.                                       Terms and Conditions
Applicable to Exercise of Call Rights.

 

(a)                                  Price.  The Purchase Price per Share with respect to
Shares purchased by the Company in connection with the exercise of a Call Right
shall be the

 

2

 

Fair Market Value of such Share on the date
upon which the right is exercised.

 

(b)                                 Other Restrictions.  Notwithstanding anything to the contrary
contained herein, all repurchases of and payments for the Shares by the Company
shall be subject to applicable legal restrictions and any restrictions in the
Company’s and its affiliates’ debt and equity financing agreements.  If any such restrictions prohibit the repurchase
of or payment for the Shares hereunder, the Company shall make such repurchases
or payments as soon as it is permitted to do so under such restrictions.

 

(c)                                  Other Terms and Conditions.  Exercise of the Call Right shall be effected
by written notice in accordance with the provisions of Section 9.  Notices of the exercise of a Call Right shall
be irrevocable and shall specify the number of Shares to be purchased.  Subject to delivery of the applicable
certificates, settlement of the Call Right shall occur on a date determined by
the Company within thirty (30) days of the Company’s receipt or delivery of
notice of exercise, as applicable (or, in the event of an extension of the time
period for the Company to comply with its obligations in accordance with Section 8(b),
within thirty (30) days of the end of the extension period), and shall be made
in cash or by wire transfer or certified check. 
The Company shall be entitled to receive customary representations and
warranties as to ownership, title, authority to sell and the like from the
Grantee or his transferees regarding any repurchase hereunder and to receive
such other evidence as may reasonably be necessary to effect the repurchase of
the Shares hereunder.

 

9.                                       Notices.  All notices and other communications under
this Agreement shall be in writing and shall be given by hand delivery to the
other party, by confirmed facsimile transmission or by registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

 

If
to the Grantee:

 

To the address on file with the Company

 

If
to the Company:

 

5400 Legacy Drive

Cluster 2, Building 3

Plano, Texas 75024

Attn: General Counsel

 

Either
party may furnish to the other in writing a substitute address and phone and
fax numbers for delivery of notice in accordance with Section 9.  Notices and communications shall be effective
when actually received by the addressee.

 

3

 

10.                                 Incorporation of Plan;
Acknowledgment.  The Plan is
hereby incorporated herein by reference and made a part hereof, and the
Restricted Stock Units and this Agreement are subject to all terms and
conditions of the Plan.  In the event of
any inconsistency between the Plan and this Agreement, the provisions of the
Plan shall govern.  By signing this
Agreement, the Grantee acknowledges having received and read a copy of the
Plan.  This Agreement and the Plan embody
the complete agreement and understanding among the parties and supersede and
preempt any prior understandings, agreements or representations by or among the
parties, written or oral, which may have related to the subject matter hereof
in any way.

 

11.                                 Adjustment.  The Restricted Stock Units shall be subject
to adjustment as provided in Section 5 of the Plan.

 

12.                                 Governing Law.  This Agreement shall be governed by and
construed according to the laws of the State of Delaware, without regard to the
conflicts of law rules thereof.

 

13.                                 Amendment and Termination.  Rights and obligations under this Agreement
shall not be adversely altered or impaired by termination or amendment of the
Plan, except with the consent of the Grantee.

 

14.                                 Representations.

 

(a)                                  The Grantee hereby
represents and warrants that, upon vesting of the Restricted Stock Units, the
Grantee will be acquiring Shares for investment solely for his own account and
not with a view to, or for resale in connection with, the distribution or other
disposition thereof.  The Grantee agrees
and acknowledges that he will not, directly or indirectly, offer, transfer,
sell, assign, pledge, hypothecate or otherwise dispose of any Shares, or
solicit any offers to purchase or otherwise acquire or take a pledge of any
Shares, unless (i) such offer, transfer, sale, assignment, pledge,
hypothecation or other disposition complies with (A) the provisions of the
Plan and this Agreement and (B) the Securities Act or an exemption
therefrom and (ii) the Grantee shall have furnished the Company with an
opinion of counsel, which opinion and counsel shall be reasonably satisfactory
to the Company, to the effect that no registration under the Securities Act is
required because of the availability of an exemption from registration under
the Securities Act and all applicable state securities or “blue sky” laws.

 

(b)                                 The Grantee acknowledges and
represents that he has been advised by the Company that (i) the offer and
sale of the Shares have not been registered under the Securities Act; (ii) the
Shares must be held indefinitely and the Grantee must continue to bear the
economic risk of the investment in the Shares unless the offer and sale of such
Shares is subsequently registered under the Securities Act and all applicable
state securities laws or an

 

4

 

exemption from such registration is available; (iii) there is no
established market for the Shares and there may not be any public market for
the Shares in the foreseeable future; (iv) Rule 144 promulgated under
the Securities Act is not presently available with respect to the sale of any
securities of the Company, and the Company has made no covenant to make such Rule available;
(v) when and if the Shares may be disposed of without registration under
the Securities Act in reliance on Rule 144, such disposition can be made
only in limited amounts and in accordance with the terms and conditions of such
Rule; (vi) if the Rule 144 exemption is not available, public offer
or sale without registration will require the availability of an exemption
under the Securities Act; (vii) a restrictive legend with respect to the
foregoing shall be placed on the certificates representing the Shares, as well
as a restrictive legend to the effect of Section 14(a) above; and (viii) a
notation shall be made in the appropriate records of the Company indicating
that the Shares are subject to restrictions on transfer and appropriate
stop-transfer instructions will be issued to the Company’s transfer agent with
respect to the Shares.

 

15.                                 Counterparts.  This Agreement may be executed in several
counterparts, each of which shall be deemed an original, and said counterparts
shall constitute but one and the same instrument.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
and year set forth first above.

 

	
   

  	
  Safety-Kleen
  HoldCo., Inc.

  
	
   

  	
  (“Company”)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Frederick
  J. Florjancic, Jr.

  
	
   

  	
  Chief
  Executive Officer & President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [                                 ]
  (“Grantee”)

  
	
   

  	
   

  

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]