Document:

Exhibit 10.6

 

 

STOCK OPTION AGREEMENT

 

STOCK
OPTION AGREEMENT (the “Agreement”) by and between Safety-Kleen HoldCo., Inc.
(the “Company”) and «First_Name» «Last_Name» (the “Optionee”), dated as of «Grant_Date» (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.                                      Number of Shares and
Exercise Price.  The Company
hereby grants to the Optionee an option (the “Option”), subject to the terms
and conditions set forth herein and in the Plan, to purchase «Options» Shares (subject to adjustment in
accordance with Section 5 of the Plan) at a price (the “Exercise Price”)
of $«Grant_Price».00 per Share (subject
to adjustment in accordance with Section 5 of the Plan).  The Option will not constitute an incentive
stock option under the Code.

 

3.                                      Term of Option and
Conditions of Exercise.

 

(a)                                 Term of Option.  Unless the Option is earlier terminated
pursuant to this Agreement or the Plan, the term of the Option shall commence
on the Date of Grant and terminate upon the tenth anniversary of the Date of
Grant.

 

(b)                                 Option Vesting.  Subject to the provisions of this Agreement
and the Plan and the Optionee’s continued employment or service with the
Company or its Subsidiaries on the applicable vesting dates, the Option shall
become vested and exercisable in four equal increments on each of the first
four anniversaries of «Vesting_Start_Date».

 

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

 

(a)                                 If the Optionee’s employment
or service with the Company and any of its Subsidiaries is terminated for
Cause, the entire Option (whether or not vested and exercisable) shall
terminate and may not be exercised following the cessation of the Optionee’s employment
or service.

 

(b)                                 If the Optionee’s employment
or service with the Company and any of its Subsidiaries terminates by reason of
the Optionee’s death or Disability, then a pro-rata amount of the portion of
the Option scheduled to vest in the year in which the termination occurs (based
upon the amount of service of the Optionee in such vesting year) shall vest and
the entire vested portion of the Option shall remain exercisable for the
two-year period commencing on such termination, subject to the provisions of
Sections 4(e) and 7 hereof.

 

(c)                                  If the Optionee’s employment
or service with the Company and any of its Subsidiaries is terminated by the
Company other than for Cause, then a pro-rata amount of the portion of the
Option scheduled to vest in the year 

 

 

in which the termination occurs (based upon the amount of service of
the Optionee in such vesting year) shall vest and the remaining unvested
portion of the Option shall immediately terminate.  Following such termination, the entire vested
portion of the Option shall remain exercisable for the 180 day period
commencing on such termination, subject to the provisions of Sections 4(e) and
7 hereof.

 

(d)                                 If the Optionee’s employment
or service with the Company and any of its Subsidiaries is terminated by the
Optionee, then the unvested portion of the Option shall immediately
terminate.  Following such termination,
the entire vested portion of the Option shall remain exercisable for the 90 day
period commencing on such termination, subject to the provisions of Sections 4(e) and
7 hereof.

 

(e)                                  Notwithstanding anything to
the contrary in this Agreement, the Option shall terminate no later than the
tenth anniversary of the Date of Grant.

 

5.                                      Nontransferability of
Option; Conditions to Transfer of Option Shares.  Without limiting the provisions of the Plan
and except as otherwise determined by the Committee, the Option shall not be
assignable or transferable otherwise than by a duly executed and attested will
or by the laws of descent and distribution; and the Option may be exercised,
during the lifetime of the Optionee, only by the Optionee or the Optionee’s
legal representative.  As a condition
precedent to the transfer of any Shares acquired pursuant to the Option at any
time prior to a Public Offering, the Optionee 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 5, 7 and 8 of this Agreement, to such transferee
in the same manner as such provisions would apply to the Optionee.  Any purported transfer in violation of this Section 5
shall be void ab initio and of no
force or effect.

 

6.                                      Exercise of Option.  The Option shall be exercised by a written
notice delivered to the Secretary of the Company at the Company’s principal
executive offices in accordance with Section 9, specifying the portion of
the Option to be exercised and accompanied by payment therefor.  The exercise price for any Shares purchased
pursuant to the exercise of the Option shall be paid in full upon such exercise
in cash, by wire transfer or certified check or by such other method as may be
approved by the Committee.

 

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
Optionee pursuant to this Option under the terms and conditions set forth in Section 8
hereof.  The events which cause the Call
Right to arise are:

 

2

 

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

 

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

 

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

 

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 Fair Market Value of such Share on the date upon which the right
is exercised, provided that in the case of an event described in Section 7(a)(i),
the purchase price per Share shall be the lower of (A) the Exercise Price
and (B) the 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
Optionee or his/her 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:

 

3

 

If
to the Optionee:

 

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.

 

10.                               Incorporation of Plan;
Acknowledgment.  The Plan is
hereby incorporated herein by reference and made a part hereof, and the Option
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 Optionee
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 of Option.  The Option 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 Optionee.

 

14.                               Representations.

 

(a)                                 The Optionee hereby
represents and warrants that, upon exercise of the Option, the Optionee 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 Optionee 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 

 

4

 

Agreement and (B) the Securities Act or an exemption therefrom and
(ii) the Optionee 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 Optionee 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 Optionee 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 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.                               Exercise of Options
Following Termination of Employment.  In the event that an Optionee’s employment or
service terminates prior to a Public Offering under the circumstances described
in Section 4(b), 4(c) or 4(d) and the Optionee makes a request
to the Company pursuant to this Section 15 (in compliance with the
provisions of Section 9 hereof) following such termination but no later
than  45 days prior to the end of the
period during which the Option may be exercised, the Company shall use
commercially reasonable efforts to (i) provide the Optionee with an
estimate of the then-current Fair Market Value of the Common Stock (it being
specifically understood that (A) the Company shall make no warranties with
respect to the accuracy of such estimate, (B) the Company will not be
required to engage a valuation expert in connection with providing such an
estimate, (C) the Optionee will not be entitled to information regarding
the basis for the estimate, and (D) the Optionee may be required to
execute such documentation as may be required by the Company in order to
receive an 

 

5

 

estimate) and (ii) provide the Optionee with contact information
that the Company may have with respect to third parties who have indicated an
interest in acquiring Common Stock.  The
Optionee specifically acknowledges that the provisions of this Section 15
in no way limit the Optionee’s representations pursuant to Section 14
hereof, nor do they require the Company to take any action which, in the discretion
of the Committee (in consultation with its legal advisors), may have an adverse
effect on the Company under any securities law or regulations or any other
applicable law or regulation.

 

16.                               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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  «First_Name» «Last_Name»(“Optionee”)

  

 

6Exhibit 10.7

 

EMPLOYMENT AGREEMENT

 

AGREEMENT by and between Safety-Kleen
Systems, Inc., a Wisconsin corporation (the “Company”), and Frederick J.
Florjancic, Jr. (the “Executive”), dated as of the 28th day of June,
2004 (the “Effective Date”).

 

WHEREAS, the Company has determined that it is in the best
interests of the Company to employ the Executive as the President and Chief
Executive Officer of the Company and Safety-Kleen Holdco, Inc. (“SK Holdco”),
and Executive desires to serve the Company in that capacity pursuant to the
terms set forth herein.

 

NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1.             Employment
Period.    The Company shall employ the Executive, and the
Executive shall serve the Company, on the terms and conditions set forth in
this Agreement, during the employment period which shall begin on the Effective
Date and continue for two years unless earlier terminated pursuant to the terms
of this Agreement (the “Employment Period”). This Agreement may be renewed, and
the Employment Period thereby extended if not previously terminated pursuant to
the terms hereof, by the Company upon the same terms and conditions as
contained herein, upon at least sixty (60) days written notice to Executive
prior to the end of the expiring term of the Employment Period.

 

2.             Position and Duties.    During
the Employment Period, the Executive shall serve as President and Chief
Executive Officer of the Company and SK Holdco and in appropriate positions in
the subsidiaries and affiliates of the Company, with the duties, functions,
responsibilities and authority customarily associated with such positions.
During the Employment Period, the Executive will devote substantially all of
his attention and time to the business and affairs of the Company, excluding
any periods of vacation and sick leave to which Executive is entitled, and will
not engage in any other business activities that will unreasonably interfere
with the Executive’s employment pursuant to this Agreement.  During the Employment Period, Executive will
be based out of the Company’s offices in Plano, Texas, and the Executive’s
services shall be performed at such locations where the Company conducts
business throughout North America as the needs and exigencies of the business
of the Company from time to time reasonably require.  Executive will relocate from his current
residence to the Plano, Texas area as soon as practical, but in any event
within 15 months of the Effective Date. 
The Company will reimburse Executive for any reasonable commuting
expenses for up to six months from the Effective Date.

 

3.             Compensation.

 

(a)           Salary.    From the Effective Date through the end of
the Employment Period, the Executive shall receive an annual base salary (the “Salary”)
of $500,000, payable in accordance with the Company’s normal payroll practices
for executives. Executive will receive an annual performance review on or about
each anniversary of the Effective Date, and may receive a corresponding Salary
increase at such time. Any new salary due to any such increase will thereafter
be deemed the “Salary” for purposes of this Agreement.

 

 

(b)           Annual Bonus.  Executive will have an annual target bonus
percentage of 100% of his Salary (the “Bonus”). The Bonus will be subject to
the terms and conditions of the annual bonus program approved by the SK Holdco
Board of Directors each year.

 

(c)           Options. On or about
the Effective Date, Executive shall receive an award of 400,000 SK Holdco
common stock options (“Options”) with a strike price of $6 per share.   The
Options will have a four year vesting period. The vesting period will start on
the Effective Date and 25% of the Options will thereafter vest on each
anniversary of the Effective Date during the Employment Period. Such Options
will be subject to SK Holdco’s Stock Option Plan and the terms of any SK Holdco
Stock Option Agreement, attached hereto and incorporated herein by reference.

 

(d)           Other Benefits.  During the Employment Period: (i) the
Executive shall be entitled to participate in the Company’s 401-k Plan,
applicable fringe benefit programs and other benefit plans, policies and
programs of the Company applicable to Executive as may be amended by the
Company from time to time; and (ii) the Executive shall be entitled to
four weeks of vacation, effective and vested immediately, and four weeks of
additional vacation effective and vested as of each anniversary of the
Effective Date during the Employment Period.

 

(e)           Programs,
Procedures and Policies.  Executive
will comply with and be bound by the Company’s applicable current and future
programs, procedures, plans and policies, as may be amended by the Company from
time to time, except to the extent such programs, procedures, plans or policies
are contrary to the terms and conditions of this Agreement.

 

4.             Termination of
Employment.

 

(a)           Death or Disability. In the event
of the Executive’s death during the Employment Period, the Executive’s
employment with the Company shall terminate automatically. In addition, the
Company shall have the right to terminate the Executive’s employment because of
the Executive’s Disability (as defined in the Company’s Long Term Disability
Benefit Plan) during the Employment Period. A termination of the Executive’s
employment by the Company for Disability shall be communicated to the Executive
by written notice, and shall be effective on the 5th day after receipt of such
notice by the Executive (the “Disability Effective Date”), unless the Executive
returns to full-time performance of the Executive’s duties before the
Disability Effective Date.

 

(b)           By the Company.  In addition to termination for death or
Disability, the Company may terminate the Executive’s employment during the
Employment Period with Cause or without Cause. For purposes of this Agreement, “Cause”
means:

 

(i)            the willful and continued failure
by Executive substantially to perform his duties with the Company (other than
any such failure resulting from Disability or other causes beyond Executive’s
reasonable control); or

 

(ii)           the willful engaging by
Executive in conduct that is demonstrably and 

 

2

 

materially
injurious to the Company, monetarily or otherwise; or

 

(iii)          the material failure of
Executive to comply with the terms and conditions of this Agreement; in each
case (i, ii, and iii) above after notice and a reasonable opportunity to cure
such matter.

 

(c)           Voluntarily
by the Executive.  The Executive may
voluntarily terminate his employment at any time during the Employment Period
by giving not less than 60 days prior written notice thereof to the Company.

 

(d)           Date
of Termination.  The “Date of
Termination” means the last day of the Employment Period if not otherwise
terminated early pursuant to any provision of this Agreement (“End of the Term”),
the date of the Executive’s death, the Disability Effective Date, the date on
which the termination of the Executive’s employment by the Company with Cause
or without Cause is effective, or the date on which the voluntary termination
of the Executive’s employment by Executive is effective, as the case may be.

 

5.             Obligations of the Company on
Termination. (a) If the Executive’s employment is terminated (i) due
to the Company failing to renew this Agreement in accordance with its terms at
least sixty (60) days prior to the End of the Term; (ii) by the Company
for any reason other than the Executive’s death, Disability or Cause, or (iii) due
to Executive resigning because the Company materially fails to comply with the
terms and conditions of this Agreement after notice from Executive and a reasonable
opportunity to cure such matter, the Company shall, upon execution by Executive
of the Company’s settlement agreement and general release, pay to the Executive
within 10 days after the Date of Termination, a lump-sum cash amount equal to
the sum of any portion of the Salary and any other compensation earned for the
period up to the Date of Termination that has not yet been paid, the cash
equivalent of any accrued but unused vacation, and one year’s worth of Salary.  Further, (a) all unvested Options granted
to Executive by SK Holdco that are scheduled to vest in the 12 months after the
Date of Termination, will vest prorata based upon the number of days from the
last vesting date to the Termination Date, divided by 365, (b) the
Management Incentive Plan (“MIP”) Bonus payment for the year in which the Date
of Termination occurs, will be payable to Executive when and as paid to other
Company employees, and will be calculated as if Executive remained employed
with the Company the entire MIP year (i.e., not prorated for length of
employment in that MIP year), and (c) provided Executive elects continued
health insurance coverage through COBRA, the Company will pay Executive’s
monthly COBRA contributions for health insurance coverage, as may be amended from
time to time, (less an amount equal to the premium contribution paid by active
Company employees) during such one year period; provided, however, that if at
any time Executive becomes eligible for health insurance through subsequent
employment or otherwise, the Company’s health benefit obligations shall
immediately cease, and the Company shall have no further obligation to make
COBRA contributions on Executive’s behalf.

 

(b)           Cause; Voluntary
Termination. If the Executive’s employment is terminated (i) due to the
Executive’s death or Disability, (ii) for Cause by the Company, or (iii) by
the Executive voluntarily during the Employment Period, the Company shall pay
the Executive, within 10 days after the Date of Termination, a lump-sum cash
amount equal to the sum of any 

 

3

 

portion
of the Salary and any other compensation earned for the period up to the Date
of Termination that has not yet been paid, plus the cash equivalent of any
accrued but unused vacation.

 

(c)           In addition to the payments and
benefits to which the Executive or the Executive’s estate may be entitled under
Sections 5(a) and (b) above and Section 5(d) below, the
Executive shall be entitled to receive any vested or other benefits to which he
may be entitled pursuant to the terms and conditions of the Company’s 401-k
Plan and any Company Life, Disability or Health Insurance Plan in which he may
participate, and any other amounts due under this Agreement.

 

(d)            Change in
Control.    If Executive’s employment
ends due to any of the items listed in Section 5(a) after or in
anticipation of a Change in Control (as defined below), instead of the amounts
in Section 5(a), the Company shall, upon execution by Executive of the
Company’s settlement agreement and general release, pay to the Executive within
10 days after the Date of Termination, a lump-sum cash amount equal to the sum
of any portion of the Salary and any other compensation earned for the period
up to the Date of Termination that has not yet been paid, the cash equivalent
of any accrued but unused vacation, and two year’s Salary. Further, (a) all
unvested Options granted to Executive by SK Holdco will fully vest upon such
Date of Termination, (b) the MIP Bonus payment for the year in which the
Date of Termination occurs, will be payable to Executive on a prorata basis
when and as paid to other Company employees, and (c) provided Executive
elects continued health insurance coverage through COBRA, the Company will pay
Executive’s monthly COBRA contributions for health insurance coverage, as may
be amended from time to time, (less an amount equal to the premium contribution
paid by active Company employees) during such year period; provided, however,
that if at any time Executive becomes eligible for health insurance through
subsequent employment or otherwise, the Company’s health benefit obligations
shall immediately cease, and the Company shall have no further obligation to
make COBRA contributions on Executive’s behalf. A “Change of Control” for
purposes of this Agreement means the sale, monetization or other disposition of
all or substantially all (greater than 50%) of the assets of the Company or SK
Holdco, or if a “person” or “group” (within the meaning of Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as in effect from time to
time) becomes the beneficial owner (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934, as in effect from time to time), directly or
indirectly, of more than 66 2/3 % of the common stock of SK Holdco having the
right to vote for the election of members of the SK Holdco Board of Directors
(but shall not include any initial or secondary public offering of SK Holdco
stock under the 1933 Securities Act, as in effect from time to time). If
Executive’s employment ends due to any of the items listed in Section 5(a) within
six (6) months prior to a Change of Control, it will be deemed to be “in
anticipation of a Change of Control” for purposes of this paragraph.

 

6.             Confidentiality
and Noncompetition. Executive agrees to execute, comply with and be
bound by the Non-disclosure, Non-solicitation and Non-competition Agreement
attached hereto as Exhibit “A” and incorporated herein by reference.
Executive will treat the terms of this Agreement as strictly confidential, and
will not disclose the same to any Company employees.

 

4

 

7.             Successors.    (a) This
Agreement is personal to the Executive and, without the prior written consent
of the Company, shall not be assignable by the Executive otherwise than by will
or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s legal representatives.

 

(b)           This Agreement
shall inure to the benefit of and be binding upon the Company and its
successors and assigns. The Company shall not assign this Agreement without the
prior written consent of the Executive, which consent shall not be unreasonably
withheld.

 

8.             Miscellaneous. (a) The
captions of this Agreement are not part of the provisions hereof and shall have
no force or effect. This Agreement may not be amended or modified except by a
written agreement executed by the parties hereto or their respective successors
and legal representatives.

 

(b)           All notices and
other communications under this Agreement shall be in writing and shall be
given by hand delivery to the other party or by registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

 

	
  If
  to the Executive:

  	
   

  	
  Frederick
  J. Florjancic, Jr.

  
	
   

  	
   

  	
  [Address
  on file with the Company]

  
	
   

  	
   

  	
   

  
	
  If to the Company:

  	
   

  	
  Safety-Kleen
  Systems, Inc.

  
	
   

  	
   

  	
  5400
  Legacy Drive,

  
	
   

  	
   

  	
  Cluster
  II, Building 3

  
	
   

  	
   

  	
  Plano,
  Texas 75024

  
	
   

  	
   

  	
  Attention:
  Chief Executive Officer

  

 

or
to such other address as either party furnishes to the other in writing in
accordance with this paragraph (b) of Section 8. Notices and
communications shall be effective when actually received by the addressee.

 

(c)           The invalidity
or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement. If any
provision of this Agreement shall be held invalid or unenforceable in part, the
remaining portion of such provision, together with all other provisions of this
Agreement, shall remain valid and enforceable and continue in full force and
effect to the fullest extent consistent with law.

 

(d)           Notwithstanding
any other provision of this Agreement, the Company may withhold from amounts
payable under this Agreement all federal, state, local and foreign taxes that
are required to be withheld by applicable laws or regulations.

 

(e)           The Executive’s or the
Company’s failure to insist upon strict compliance with any provision of, or to
assert any right under, this Agreement shall not be deemed to be a waiver of
such provision or right or of any other provision of or right under this
Agreement.

 

(f)            The Executive
and the Company acknowledge that this Agreement supersedes 

 

5

 

any other agreement, whether
written or oral, between them concerning the subject matter hereof, including
any prior employment agreement, severance agreement or plan, and change of
control agreement or plan.

 

(g)           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 Executive has hereunto set the Executive’s hand, and the
Company has caused this Agreement to be executed in its name on its behalf, all
as of the day and year first above written.

 

 

	
   

  	
    /s/ Frederick
  J. Florjancic, Jr.

  
	
   

  	
  Frederick
  J. Florjancic, Jr., Executive

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SAFETY-KLEEN
  SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Tom Arnst

  
	
   

  	
   

  	
  Tom
  Arnst

  
	
   

  	
   

  	
  Title:
  Authorized Company Signatory

  

 

6

 

	
  

  	
  T.R. Tunnell

  Executive Vice President and

  General Counsel

  
	
   

  
	
   

  
	
   

  
	
   

  	
  November 30,
  2006

  
			

 

Frederick J. Florjancic, Jr.

President and Chief
Executive Officer

Safety-Kleen Systems, Inc.

5400 Legacy Drive

Plano, TX 75024

 

Re:                               Amendment to Employment
Agreement dated June 28, 2004, as amended (the “Employment Agreement”)

 

Dear
Fred,

 

The
purpose of this letter is to confirm the decision of the Human Resource and
Compensation Committee to amend certain provisions of the Employment Agreement
as follows:

 

	
  A.

  	
   

  	
  The
  “Employment Period” under the Employment Agreement is extended until
  December 31, 2009.

  
	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  Section 3(b) of
  the Employment Agreement is amended in its entirety as follows effective as
  of January 1, 2007 (for clarification, this amendment does not modify
  the Executive’s annual bonus applicable to the 2006 MIP Plan year):

  

 

3.             Compensation.

 

	
   

  	
  ...

  

 

(b)           Annual Bonus.  Executive will have an annual bonus as a
percentage of Salary (the “Bonus”) as follows:

 

	
  Plan

  	
   

  	
  Plan +

  	
   

  	
  Plan ++

  	
   

  
	
  100

  	
  %

  	
  200

  	
  %

  	
  300

  	
  %

  

 

The Bonus will be subject to the terms and conditions of the annual
bonus program approved by the SK Holdco Board of Directors each year.

 

SAFETY-KLEEN HOLDCO, INC.

5400 LEGACY DRIVE, CII
B3        PLANO, TX
75024        972-265-2000

 

 

All
other terms and conditions of the Employment Agreement as amended shall remain
in full force and effect.   Please
acknowledge your agreement with these amendments by signing in the space
provided below.

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    /s/
  T.R. Tunnell

  	
   

  
	
  T.
  R. Tunnell

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged
  and Agreed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    /s/
  Frederick J. Florjancic, Jr.

  	
   

  
	
  Frederick
  J. Florjancic, Jr.

  	
   

  

 

 

	
  

  	
  T. R. Tunnell  

  Executive Vice President,

  Secretary & General Counsel

  
	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
  June 22,
  2006

  
			

 

Frederick J. Florjancic, Jr.

President and Chief
Executive Officer

Safety-Kleen Systems, Inc.

5400 Legacy Drive

Plano, TX 75024

 

Re:          Amendment to Employment Agreement
dated June 28, 2004

 

Dear
Fred,

 

As
you know, the Human Resource and Compensation Committee at its meeting on March 20,
2006 agreed to amend the definition of “Change of Control” to include a change
of beneficial ownership of the company of more than 50% of the common
stock.  I have attached a copy of the
Amended Equity Plan for your information.

 

The
purpose of this letter is to confirm that, in order to conform your Employment
Agreement to amended provision, Section 5(d) of the Employment
Agreement is amended by adding the following to the end of such paragraph:

 

Notwithstanding the foregoing, if the definition of “Change of Control”
in the Company’s Equity Plan (as amended from time to time) is more favorable
to the Executive, then such definition shall be controlling for purposes of
this Agreement.

 

All
other terms and conditions of the Employment Agreement shall remain in full
force and effect.   Please acknowledge
this change by signing in the space provided below.

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    /s/
  T.R. Tunnell

  	
   

  
	
  T.
  R. Tunnell

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged
  and Agreed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    /s/
  Frederick J. Florjancic, Jr.

  	
   

  
	
  Frederick
  J. Florjancic, Jr.

  	
   

  

 

SAFETY-KLEEN HOLDCO, INC.

5400
LEGACY DRIVE, CII B3          PLANO, TX
75024          972-265-2000

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"}]]