Document:

Exhibit 10.11

                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS AGREEMENT, dated as of August 11, 2004, is by and between American
Ref-Fuel Company LLC, a Delaware limited liability company (the "Company"), and
John T. Miller (the "Employee").

                                 WITNESSETH THAT

         WHEREAS, the Company considers it essential to the best interests of
its shareholders to foster the continued employment of key management personnel;
and

         WHEREAS, the Company wishes to provide for the continued employment by
the Company of the Employee and the Employee wishes to serve the Company and its
affiliated entities in the capacities and on the terms and conditions set forth
in this Agreement; and

         WHEREAS, this Agreement is the entire agreement between the parties
concerning the subject matter hereof and supersedes all prior agreements
concerning the same subject;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the Company and the Employee hereby agree as
follows:

         1. Term of the Agreement. This Agreement shall be in effect commencing
on the date above written (the "Effective Date") until December 31, 2006, unless
sooner terminated under Paragraph 4 or extended in writing by both parties
("Term of the Agreement").

         2. Position and Duties.

                  (a) The Employee shall serve as Chief Executive Officer of the
Company. The Employee shall have such responsibilities and duties as may be
assigned to Employee from time to time by the Board of Directors.

                  (b) Excluding any periods of vacation and sick leave to which
the Employee is entitled, the Employee shall devote substantially all of his
attention and time during working hours to the business and affairs of the
Company and its affiliates, and, to the extent necessary to discharge the
responsibilities assigned to the Employee, use the Employee's reasonable best
efforts to carry out such responsibilities faithfully and efficiently. It shall
not be considered a violation of the foregoing for the Employee to serve on
corporate, industry, civic, or charitable boards or committees, so long as such
activities do not interfere with the performance of the Employee's
responsibilities as an employee of the Company in accordance with this Agreement
or violate Paragraph 8 of this Agreement.

         3. Compensation. Except as expressly set forth otherwise herein, the
Employee's compensation shall be determined by, and in the sole discretion of,
the Board.

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<PAGE>

                  (a) Annual Base Salary. The Employee shall receive an annual
base salary of not less than $370,000 (the annual base salary in effect from
time to time, "Annual Base Salary"). The Annual Base Salary shall be payable in
accordance with the Company's regular payroll practice for its senior officers,
as in effect from time to time. The Annual Base Salary shall be reviewed at
least annually and, in the sole discretion of the Board, may be adjusted;
provided, however, in no case shall the Annual Base Salary be reduced. Any
increase in the Annual Base Salary shall not limit or reduce any other
obligation of the Company under this Agreement.

                  (b)      Incentive Compensation; Employee Benefits; Fringe
Benefits.

                           (i) The Employee shall be eligible to participate in
cash and equity-based short-term and long-term bonus and incentive compensation
arrangements, retirement plans, policies and arrangements (qualified and
nonqualified), supplemental retirement plans, policies and arrangements,
deferred compensation plans, policies and arrangements, and health and welfare
plans, policies and arrangements that are provided generally to other senior
officers of the Company at a level (in terms of the amount and types of benefits
and incentive compensation that the Employee has the opportunity to receive and
the terms thereof) substantially similar in the aggregate to that which is
provided generally to other senior officers of the Company (provided, that the
Company is under no obligation to provide any specific level of discretionary
awards); (ii) the Employee and/or the Employee's family, as the case may be,
shall be eligible for participation in, and shall receive all benefits under,
applicable welfare benefit plans, practices, policies, and programs provided by
the Company to the same extent as provided generally to other senior officers of
the Company; provided, however, except as may be expressly set forth elsewhere
in this Agreement, nothing contained in this paragraph or any other paragraph or
subparagraph of this Agreement shall entitle the Employee to receive duplicate
or multiple payments or benefits under the same plan or arrangement; (iii) the
Employee shall be entitled to receive fringe benefits substantially similar to
those enjoyed generally by other senior officers of the Company and shall be
entitled to participate in the vacation policy of the Company and avail himself
of paid holidays (as determined from time to time by the Company) on the same
terms and conditions as other senior officers of the Company.

         4. Termination of Employment.

                  (a) Death or Disability. The Employee's employment and this
Agreement shall terminate automatically upon the Employee's death. The Company
shall be entitled to terminate the Employee's employment and this Agreement
because of the Employee's Disability during the Term of the Agreement. For
purposes of this Agreement, the term "Disability" shall mean the Employee's
continued absence from the performance of his or her duties with the Company for
six (6) consecutive months as a result of the Employee's substantial incapacity
due to physical or mental illness or injury.

                  (b) By the Company.

                           (i) The Company may terminate the Employee's
employment and this Agreement during the Term of the
Agreement for Cause or without Cause.

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                           (ii) "Cause" means conduct amounting to: (1) fraud or
dishonesty against UAE Holdings and its affiliates and subsidiaries ("UAE
Holdings Group"), (2) willful misconduct, repeated refusal to follow the
reasonable direction of the Board of Directors of the Company and its affiliates
or Employee's supervisor, or committing a knowing violation of the law in the
course of the performance of Employee's duties, (3) repeated absences from work
without a reasonable excuse, (4) intoxication with alcohol while on the
Company's premises during regular business hours or any use of illegal
substances, (5) a conviction or plea of guilty or nolo contender to a
felony or a crime involving dishonesty, and (6) a breach or violation of the
terms of this Agreement and any other agreement to which Employee and a member
of the UAE Holdings Group are party.

                  (c) By the Employee.

                           (i)      The Employee may terminate  employment  and
this Agreement for Good Reason upon not less than 30 days prior written notice
or, upon not less than three months prior written notice, without Good Reason.

                           (ii) "Good Reason" means, without express written
consent, the occurrence of any one or more of the following: (1) a material
reduction or alteration in the nature, scope or status of Employee's
authorities, duties or responsibilities (not corrected by the
Company within 10 days of the Company's receipt of a Notice of Termination of
Good Reason), (2) a material reduction of the Employee's compensation; (3) UAE
Holdings Group's failure to pay any part of Employee's compensation within four
(4) weeks after such compensation was due; and (4) requiring the Employee to be
based at any office located more than 30 miles (based on the most direct route)
from the Company's current headquarters in Montvale, New Jersey; provided,
however, the stock sale, spin off, asset sale or other disposition of no more
than 4 of the 6 ARC facilities, resulting in Employee's termination as an
officer of such businesses, shall not constitute "Good Reason" under clause (1)
above.

The Employee's right to terminate his employment and this Agreement for Good
Reason shall not be affected by the Employee's incapacity due to physical or
mental illness; provided, that the Company may change the Employee's duties,
authorization or responsibilities in respect of any limitations caused by such
incapacity without triggering Good Reason. The Employee's continued employment
shall not constitute consent to, or a waiver of rights with respect to, any act
or failure to act constituting Good Reason hereunder. No such event described
hereunder shall constitute Good Reason unless the Employee has given a Notice of
Termination (as that term is defined below) for Good Reason to the Company
specifying the event relied upon for such termination within 180 days from the
occurrence of such event (but in no event beyond the Term of the Agreement).

                  (d)      Termination Procedures.

                           (i) Notice of Termination. Any purported termination
of the Employee's employment and this Agreement (other than by reason of death)
shall be communicated by written Notice of Termination from one party hereto to
the other party hereto in accordance with subparagraph 13(b) hereof. For
purposes of this Agreement, a "Notice of Termination" shall mean a notice that
indicates the specific termination provision in this Agreement relied upon and
sets forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Employee's employment under the provision so
indicated.

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<PAGE>

                                    (A) Terminations for Cause; Due Process. A
termination of the Employee's employment for
Cause shall be effected in accordance with the following procedures. The Board
shall give the Employee reasonable written notice ("Notice of Termination for
Cause") of its intention to terminate the Employee's employment for Cause within
six (6) months of the date the Company became aware of such event (but in no
event beyond this expiration of the Term of the Agreement) setting forth in
reasonable detail the specific conduct of the Employee that it considers to
constitute Cause and the specific provision(s) of this Agreement on which it
relies, and stating the date, time and place of the Board Meeting for Cause. The
"Board Meeting for Cause" means a meeting of the Board at which the Employee's
termination for Cause will be considered. The Employee shall be given an
opportunity, together with counsel, to be heard at the Board Meeting for Cause.
The Employee's termination for Cause shall be effective when and if a resolution
is duly adopted at the Board Meeting for Cause by the required vote of the
Board, stating that in the good faith opinion of the Board, the Employee is
guilty of the conduct described in the Notice of Termination for Cause, and that
such conduct constitutes Cause under this Agreement.

                                    (B) Termination for Good Reason. A Notice of
Termination for Good Reason shall specify in
reasonable detail the specific provision(s) in this Agreement and the event(s)
relied upon as the basis for such termination.

                           (ii) Date of Termination. Except as otherwise
provided in subparagraph 12(c) of this Agreement, "Date of Termination (and the
end of the Term of this Agreement)," with respect to any purported termination
of the Employee's employment during the Term of the Agreement, shall mean the
date specified in the Notice of Termination or if earlier, the date of the
Employee's death.

                           (iii) No Waiver. The failure to set forth any fact or
circumstance in a Notice of Termination shall not constitute a waiver of the
right to assert, and shall not preclude the party giving notice from asserting,
such fact or circumstance in an attempt to enforce any right under or provision
of this Agreement.

         5.       Obligations of the Company upon Termination

                  (a) By the Company other than for Cause, death or Disability,
or by the Employee for Good Reason.

                           (i) Basic Severance. If, during the Term of the
Agreement, the Company terminates the Employee's employment, other than for
Cause, death, or Disability, or the Employee terminates his employment for Good
Reason,

                                    (A) the Company shall pay or provide to the
Employee within 30 days the Accrued Obligations (as that term is defined in
subparagraph 5(b) below);

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<PAGE>

                                    (B) the Company shall continue to pay or
provide to the Employee, commencing with the month in which the Date of
Termination shall have occurred and continuing for a period of two (2) years
(hereinafter referred to as the "Severance Period") paid in the same form and at
the same time as would have been paid had the Employee's employment not
terminated, the sum of the following:

                  (1) the Employee's Annual Base Salary (at the same level that
                  was being paid to the Employee on the Date of Termination),
                  paid in equal installments over the Severance Period;

                  (2) an annual cash bonus equal to the average of the annual
                  cash bonuses earned by the Employee over the three years
                  preceding the Date of Termination, which shall be paid at the
                  same time and in the same manner as other annual bonus
                  payments which are made to similarly situated executives who
                  remain employed with the Company (or if there were no
                  continuing similarly situated executives, at the same time of
                  year and in the same manner as it was paid in the prior year);
                  and

                  (3) the Employee's prorated target cash bonus determined in
                  the manner set forth in Section 5(b)(iv) below, which prorated
                  bonus shall be paid at the same time and in the same manner as
                  other annual bonus payments for such year are made to
                  similarly situated executives who remain employed with the
                  Company (or if there were no continuing similarly situated
                  executives, at the same time of year and in the same manner as
                  it was paid in the prior year).

                                    (C) during the Severance Period, the
Employee shall be entitled to all health and welfare benefits under the
Company's welfare benefit plans (within the meaning of Section 3(1) of the
Employee Retirement Income Security Act of 1974, as amended), as if the Employee
were still employed during such period, at the same level of benefits and at the
same dollar cost to the Employee as is available to all of the Company's senior
executives generally. If and to the extent that equivalent benefits shall not be
payable or provided under any such plan(s), the Company shall pay or provide
equivalent benefits on an individual basis. The health and welfare benefits
provided in accordance with this subparagraph shall be reduced by any comparable
benefits provided by another employer.

                           (ii) Liquidated Damages. The payments and benefits
provided above are intended as liquidated damages for a termination of the
Employee's employment by the Company other than for Cause, death, or Disability
or for the actions of the Company leading to a termination of the Employee's
employment by the Employee for Good Reason, and shall be the sole and exclusive
remedy therefor.

         (b) Death or Disability; Cause; Without Good Reason. If, during the
Term of the Agreement, the Employee's employment is terminated by reason of the
Employee's death or Disability, or if the Employee's employment is terminated by
the Company for Cause or by the Employee for other than Good Reason, the Company
shall pay to the Employee or, in the case of the Employee's death, to the
Employee's designated beneficiaries (or, if there is no such beneficiary, to the
Employee's estate or legal representative) in a lump sum in cash within 30 days
after the Date of Termination, the sum of the following amounts (the "Accrued
Obligations"): (i) any portion of the Employee's Annual Base Salary through the
Date of Termination that has not yet been paid; (ii) any compensation previously
deferred by the Employee (together with any accrued interest or earnings
thereon) that has not yet been paid; (iii) any accrued but unpaid vacation pay;
and, (iv) in the event the Employee's employment is terminated by reason of the
Employee's death or Disability, a cash bonus calculated by using the Employee's
target cash bonus for the calendar year which includes the Date of Termination,
multiplied by a fraction, the numerator of which is the number of months of
employment (including any portion thereof) completed by Employee during the
calendar year which includes the Employee's Date of Termination, and the
denominator of which is 12. After making such payment(s), the Company shall have
no further obligations under this Agreement.

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<PAGE>

         (c) Termination of Employment After the Term of this Agreement. If
Employee remains in the employ of the Company or any of its affiliated entities
following the Term of this Agreement, Employee's employment shall be on an
"at-will" basis. If the Employee's employment terminates after the Term of this
Agreement, payments to the Employee of termination or severance payments, if
any, shall be provided only under the Severance Agreement attached as Exhibit A,
which Severance Agreement shall become effective on the date of the expiration
of the Term of this Agreement.

         6. Non-Exclusivity of Rights. Except as otherwise provided in this
Agreement, nothing in this Agreement shall prevent or limit the Employee's
continuing or future participation in any plan, program, policy or practice
provided by the Company or any of its affiliated companies for which the
Employee may qualify, (other than severance policies) nor shall anything in this
Agreement limit or otherwise affect such rights as the Employee may have under
any contract or agreement with the Company or any of its affiliated companies.
Vested benefits and other amounts that the Employee is otherwise entitled to
receive under any other plan, program, policy, or practice of, or any contract
or agreement with, the Company or any of its affiliated companies on or after
the Date of Termination shall be payable in accordance with the terms of each
such plan, program, policy, practice, contract, or agreement, as the case may
be, except as explicitly modified by this Agreement.

         7. Full Settlement; No Mitigation. The Company's obligation to make the
payments provided for in, and otherwise to perform its obligations under, this
Agreement shall not be affected by any set-off, counterclaim, recoupment,
defense, or other claim, right, or action that the Company may have against the
Employee or others. In no event shall the Employee be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Employee under any of the provisions of this Agreement and (except as
provided with respect to health and welfare benefits in subparagraph 5(a)(i)(C)
of this Agreement) the amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by the Employee as the
result of employment by another employer, by retirement benefits, by offset
against any amount claimed to be owed by the Employee to the Company, or
otherwise.

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         8. Non-Competition Provision and Confidential Information.

                  (a) Non-Competition. Without prior written consent of the
Company, during the period of the Employee's employment with the Company and for
24 months following the Date of Termination, the Employee shall not, as a
shareholder, officer, director, partner, consultant, employee, or otherwise,
engage directly or indirectly in any business or enterprise which is "in
competition" with the Company or its successors or assigns or affiliates thereof
or undertake any action which would be injurious to the Company or its
affiliates or assist the Company's or its affiliates' competitors; provided,
however, that the Employee's ownership of less than three percent of the issued
and outstanding voting securities of a publicly traded company shall not, in and
of itself, be deemed to constitute such competition. A business or enterprise is
deemed to be "in competition" if it (i) is engaged, or during such 24 month
period begins to or intends to begin to engage, as a part of its business, in
the business of acquiring and/or operating waste-to-energy projects in the
United States or acquiring and/or operating power generation or waste collection
and disposal businesses which compete with the Company's operations (the
"Business") and (ii) regularly competes, or during such 24 month period begins
to or intends to begin to regularly compete, with the Company for opportunities
to acquire and/or operate such projects. Notwithstanding the foregoing, the
Employee shall not be in violation of this Paragraph 8(a) if each of the
following items is satisfied: (i) the Business is an insignificant portion of
the business or enterprise with respect to which the Employee becomes
associated; (ii) the Employee's association with such business or enterprise is
not as an officer, director, partner, shareholder of a non-publicly traded
company, or owner of three percent or more of the issued and outstanding voting
securities of a publicly traded company; and (iii) the Employee demonstrates, to
the reasonable satisfaction of the Company, which may require a written
affirmation by the Employee, that the Employee does not and will not provide
services for, advise, or consult or otherwise share information with, the
portion of the business or enterprise, or the employees thereof, engaged in the
Business.

                  (b) Confidential Information. The Employee shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge, trade secrets, methods, know-how or data relating to the
Company or any of its affiliated companies and their respective businesses or
acquisition prospects that the Employee obtained or obtains during the
Employee's employment by the Company or any of its affiliated companies and that
is not public knowledge (other than as a result of the Employee's violation of
this Paragraph 8) ("Confidential Information"). The Employee shall not
communicate, divulge, or disseminate Confidential Information at any time during
or after the Employee's employment with the Company, except with the prior
written consent of the Company or as otherwise required by law or legal process;
provided, that if so required, the Employee will provide the Company with
reasonable notice to contest such disclosure.

                  (c) Non-Solicitation of Employees. Employee recognizes that he
will possess confidential information about other employees of the Company and
its respective affiliates relating to their education, experience, skills,
abilities, compensation and benefits, and inter-personal relationships with
suppliers to and customers of the Company and its respective affiliates.
Employee recognizes that the information he will possess about these other
employees is not generally known, is of substantial value to the Company and its
respective affiliates in developing their respective businesses and in securing
and retaining customers, and will be acquired by him because of his business
position with the Company. Employee agrees that, during the employment (and for
a period of 24 months following the Date of Termination), he will not, directly
or indirectly, solicit or recruit any employee of the Company or any of its
respective affiliates for the purpose of being employed by him or by any
business, individual, partnership, firm, corporation or other entity on whose
behalf he is acting as an agent, representative or employee and that he will not
convey any such confidential information or trade secrets about other employees
of the Company or any of its respective affiliates to any other person except
within the scope of Employee's duties hereunder.

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<PAGE>

                  (d) Employee agrees that for a period of 24 months following
the Date of Termination, he will not solicit any person who is a customer of or
supplier to one of the businesses conducted by the Company or its subsidiaries,
on behalf of an entity engaged in any such business or a similar business.

                  (e) Remedies; Severability.

                           (i) The Employee acknowledges that if the Employee
shall breach or threaten to breach any provision of Paragraphs 8(a) through (d),
the damages to the Company and its affiliates may be substantial, although
difficult to ascertain, and money damages will not afford the Company and its
affiliates an adequate remedy. Therefore, if the provisions of Paragraphs 8(a)
through (d) are violated, in whole or in part, the Company and its affiliates
shall be entitled to specific performance and injunctive relief, without
prejudice to other remedies the Company and/or its affiliates may have at law or
in equity.

                           (ii) If any term or provision of this Paragraph 8, or
the application thereof to any person or circumstances shall, to any extent, be
invalid or unenforceable, the remainder of this Paragraph 8, or the application
of such term or provision to persons or circumstances other than those as to
which it is held invalid or unenforceable, shall not be affected thereby, and
each term and provision of this Paragraph 8 shall be valid and enforceable to
the fullest extent permitted by law. Moreover, if a court of competent
jurisdiction deems any provision hereof to be too broad in time, scope, or area,
it is expressly agreed that such provision shall be reformed to the maximum
degree that would not render it unenforceable.

         9.       Certain Additional Payments by the Company

                  (a) Notwithstanding any other provision(s) in this Agreement
to the contrary, in the event it shall be determined that any payment or
benefits paid, payable or provided to the Executive or for his benefit pursuant
to the terms of this Agreement, when combined with other "parachute payments"
(as defined in Section 280G of the Internal Revenue Code of 1986, as amended,
(the "Code"), or any successor provision thereto) provided or to be provided to
the Executive from the Company, its affiliates and/or plans of the Company
and/or its affiliates, would be subject to the excise tax (the "Excise Tax")
imposed by Section 4999 of the Code (such payments and/or benefits, whether
provided under this Agreement or otherwise, the "Parachute Payments"), then such
Parachute Payments shall be reduced to the extent necessary so that no portion
of any Parachute Payment is subject to the Excise Tax if (a) the net amount of
such Parachute Payments, as so reduced (after deduction of all federal, state
and local income taxes on such reduced Parachute Payments) is greater than (b)
the excess of (i) the net amount of such Parachute Payments, without reduction
(but after deduction of all federal, state and local income taxes on such
Parachute Payments), less (ii) the amount of Excise Tax to which the Employee
would be subject in respect of such Parachute Payments. All determinations
required to be made under this Paragraph 9 shall be made by a lawyer, a
certified public accountant with a nationally recognized certified public
accounting firm, or a compensation consultant with a nationally recognized
actuarial and benefits consulting firm with expertise in the area of executive
compensation tax law, who shall be designated by the Company (the "Independent
Tax Counsel"), which shall provide detailed supporting calculations both to the
Company and the Employee within 15 business days of the receipt of notice from
the Employee that there has been a Parachute Payment, or such earlier time as is
requested by the Company. Such determination shall be binding on the parties
hereto. The determination of which payments or benefits shall be reduced to
avoid the Excise Tax shall be determined in the sole discretion of the Company;
provided, however, that unless the Executive gives written notice specifying a
different order to the Company to effectuate the limitations described above,
the Company shall first reduce or eliminate, as the case may be, those payments
or benefits that will cause a dollar-for-dollar reduction in total Parachute
Payments, and then by reducing or eliminating other Parachute Payments, to the
extent possible, in reverse order beginning with payments or benefits that are
to be paid the farthest in time from the date the reduction or elimination is to
be made. Any notice given by the Executive pursuant to the preceding sentence,
unless prohibited by law, shall take precedence over the provisions of any other
plan, arrangement or agreement governing the Executive's rights and entitlement
to any benefits or compensation. All fees and expenses of the Independent Tax
Counsel shall be borne solely by the Company.

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                  (b) In the event that the determination by the Independent Tax
Counsel is revised by the Internal Revenue Service in connection with a final
determination that the calculations by the Independent Tax Counsel were
incorrect, that amounts received or to be received by the Employee would exceed
the amount that is permitted to be received by the Employee without the
imposition of tax under Section 4999 of the Code (the "Excess"), the Employee
shall forego the Excess and not be entitled to receive the Excess or, as the
case may be, if necessary, shall return the Excess attributable to him to the
Company. The amounts to be foregone by the Employee shall be those scheduled to
be paid at the latest date. If after foregoing all payments then remaining to be
paid the Excess is not eliminated, the Employee shall return to the Company and
forego an amount sufficient to eliminate the Excess.

         10. Attorneys' Fees. The Company shall pay to the Employee, at the
conclusion of any contest, to the fullest extent permitted by law, all legal or
arbitration fees, court costs, and litigation or arbitration expenses reasonably
incurred by the Employee as a result of any contest by the Company, the
Employee, or others regarding the validity or enforceability of or liability
under, or otherwise involving, any provision of this Agreement, but only if the
Employee's material claim is, or claims are, successful.

         11. Arbitration. In the event of any dispute or difference between the
Company and the Employee with respect to the subject matter of this Agreement
and the enforcement of rights hereunder, such controversy shall be finally,
exclusively and conclusively settled by mandatory arbitration conducted
expeditiously in accordance with the American Arbitration Association rules, by
a single independent arbitrator. If the parties are unable to agree on the
selection of an arbitrator, then either the Employee or the Company may petition
the American Arbitration Association for the appointment of the arbitrator,
which appointment shall be made within ten (10) days of the petition therefor.
Either party to the dispute may institute such arbitration proceeding by giving
written notice to the other party. A hearing shall be held by the arbitrator in
New York, New York within thirty (30) days of his or her appointment. The
decision of the arbitrator shall be final and binding upon the parties and shall
be rendered pursuant to a written decision that contains a detailed recital of
the arbitrator's reasoning. Judgment upon the award rendered may be entered in
any court having jurisdiction thereof.

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         12.      Successors.

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

                  (b)      This  Agreement  shall inure to the benefit of and be
binding  upon the  Company and its  successors  and assigns.

                  (c) The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business and/or assets of the Company expressly to
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would have been required to perform it if no such
succession had taken place. Failure of the Company to obtain such assumption and
agreement prior to the effectiveness of any such succession shall be a breach of
this Agreement and shall entitle the Employee to compensation from the Company
in the same amount and on the same terms as the Employee would be entitled to
hereunder if the Employee were to terminate the Employee's employment for Good
Reason, except that, for purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Date of
Termination. As used in this Agreement, "Company" shall mean both the Company as
defined above and any such successor that assumes and agrees to perform this
Agreement, by operation of law or otherwise.

         13.      Miscellaneous.

                  (a) This Agreement shall be governed by, and construed in
accordance with, the laws of New Jersey, without reference to principles of
conflict of laws. 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. Any action by the Company to
amend or modify this Agreement must be approved by the Company's Board of
Directors.

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                  (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 Employee:

If to the Company:

or to such other address as either party furnishes to the other in writing in
accordance with this subparagraph (b) of this Paragraph 13. 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. All cash amounts required to be paid hereunder shall be
paid in United States dollars.

                  (e) The Employee's or the Company's failure to insist upon
strict compliance with any provision of, or to assert any right under, this
Agreement (including, without limitation, the right of the Employee to terminate
employment for Good Reason) 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 Employee and the Company acknowledge that this
Agreement supersedes and terminates any other severance and employment
agreements between the Employee and the Company or any Company affiliates.

                  (g) The rights and benefits of the Employee under this
Agreement may not be anticipated, assigned, alienated, or subject to attachment,
garnishment, levy, execution, or other legal or equitable process except as
required by law. Any attempts by the Employee to anticipate, alienate, assign,
sell, transfer, pledge, encumber, or charge the same shall be void. Payments
hereunder shall not be considered assets of the Employee in the event of
insolvency or bankruptcy. The obligations of the Company and the Employee under
this Agreement which by their nature may require either partial or total
performance after the expiration of the Term of the Agreement shall survive such
expiration.

                  (h) Notwithstanding anything in this Agreement, the provisions
of Paragraphs 8, 9, 10 and 11 shall survive a termination of Employee's
employment that occurs during the Term of this Agreement and shall remain in
effect for the periods specified therein, or, if no period is specified, until
all of Company's and Employee's obligations under such Paragraphs are satisfied.

                                       28
<PAGE>

                  (h) 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 Employee has hereunto set the Employee's hand
and, pursuant to the authorization of their respective Boards of Directors, the
Company has caused this Agreement to be executed in their name on their behalf,
all as of the day and year first above written.

                             COMPANY

                             By:_____________________________________

                             EXECUTIVE

                              By:_____________________________________
                                          John T. Miller

                                       29Exhibit 10.4

                              REF-FUEL HOLDINGS LLC
                            MANAGEMENT INCENTIVE PLAN

1.   Purpose. The purpose of this Plan is to encourage the highest level of
     performance by the executive officers of ARC, and to provide them with
     incentives to put forth maximum efforts for the success of the Group, in
     order to serve the best interests of the Group.

2.   Definitions. For purposes of the Plan, the following terms, when
     capitalized, shall have the definition attributed to them in this Section
     2:

     2.1. "Account" means a bookkeeping account established by the Company on
          behalf of each Participant to which the Participant's MIP Allocations
          are credited.

     2.2. "Affiliate" means DLJMB Funds, Highstar Funds and any other person or
          entity which, at the time of reference, directly, or indirectly
          through one or more intermediaries, controls or is controlled by UAE
          Holdings, as determined in good faith by UAE Holdings' Board of
          Directors.

     2.3. "Allocation Year" means each of the 2004, 2005 and 2006 calendar
          years. If performance target goals are met, it is the current
          intention of the Company that Allocation Year would extend to calendar
          years beyond 2006; provided however, that any such extension shall be
          at the sole and absolute discretion of the Board and there is no
          binding obligation to do so.

     2.4. "ARC" means American Ref-Fuel Company LLC, a Delaware limited
          liability company, and its successors and assigns.

     2.5. "Board" shall mean the Board of Directors of the Company.

     2.6. "Cause" means conduct amounting to (a) fraud or dishonesty against the
          Group, (b) willful misconduct, repeated refusal to follow the
          reasonable direction of the Board, or knowing violation of law in the
          course of performance of the duties of the Participant's employment
          with the Group, (c) repeated absences from work without a reasonable
          excuse, (d) intoxication with alcohol while on ARC's premises during
          regular business hours or any use of illegal substances, (e) a
          conviction or plea of guilty or nolo contendere to a felony or a crime
          involving dishonesty, or (f) a breach or violation of the terms of any
          employment or other agreement to which the Participant and the Group
          are party.

     2.7. "Code" means the Internal Revenue Code of 1986, as amended. References
          to a particular section of the Code include references to successor
          provisions.

     2.8. "Committee" means the Compensation Committee of the Board or such
          other committee appointed by the Company to administer the Plan.

     2.9. "Company" means Ref-Fuel Holdings LLC and its successors and assigns.

     2.10. "Date of Termination" shall have the meaning ascribed to such term in
          the Participant's employment agreement with the Group.

<PAGE>

     2.11. "Disability" means the Participant's continued absence from the
          performance of his or her duties with ARC for six (6) consecutive
          months as a result of the Participant's substantial incapacity due to
          physical or mental illness or injury.

     2.12. "DLJMB Funds" means DLJ Merchant Banking Partners III, L.P., DLJ
          Offshore Partners III, C.V., DLJ Offshore Partners III-1, C.V., DLJ
          Offshore Partners III-2, C.V., DLJMB Partners III GmbH & Co. KG,
          Millennium Partners II, L.P. and MBP III Plan Investors, L.P. and in
          the case of any DLJMB Fund, (A) any other DLJMB Fund, (B) any
          stockholder, member or general or limited partner of any DLJMB Fund (a
          "DLJMB Partner"), and any corporation, partnership, limited liability
          company, or other entity that is an Affiliate of any DLJMB Fund or any
          DLJMB Partner (collectively, "DLJMB Affiliates"), (C) any managing
          director, general partner, director, limited partner, officer or
          employee of any DLJMB Fund or any DLJMB Affiliate, or any spouse,
          lineal descendant, sibling, parent, heir, executor, administrator,
          testamentary trustee, legatee or beneficiary of any of the foregoing
          Persons described in this clause (C) (collectively, "DLJMB
          Associates"), or (D) any trust, the beneficiaries of which, or any
          corporation, limited liability company or partnership the
          stockholders, members or general or limited partners of which, include
          only such DLJMB Affiliates, DLJMB Associates, DLJMB Partners or the
          DLJMB Funds.

     2.13. "Effective Date" means January 1, 2004.

     2.14. "Equity Contribution Agreements" mean either (i) the Equity
          Contribution Agreement, dated as of April 30, 2001, among MSW Energy
          Holdings LLC (as successor to Duke Capital Corporation), United
          American Energy Corp., Duke/UAE Ref-Fuel LLC (now known as Ref-Fuel
          Holdings LLC) and Duke/UAE Holdings LLC (now known as American
          Ref-Fuel Company LLC), as amended, as the same may be further amended
          and in effect from time to time, or (ii) the Amended and Restated
          Company Support Agreement, dated as of December 1, 1997, between
          American Ref-Fuel Company of Essex County, Duke Capital Corporation,
          and Browning-Ferris Industries, Inc. and includes any substitute
          company support agreement entered into pursuant to the then applicable
          Company Support Agreement and any other amendments, modifications and
          supplements thereto from time to time.

     2.15. "Extraordinary Distribution" means a distribution in a given calendar
          year by UAE Holdings to its shareholders or MSW I to its members
          related to significant non-operational events such as a liquidation or
          dissolution of UAE Holdings and/or MSW I, incremental debt financings,
          major asset sales or buy-downs of power purchase contracts.

     2.16. "Good Reason" means the occurrence of any one or more of the
          following actions without the express written consent of the
          Participant: (a) a material reduction or alteration in the nature,
          scope or status of the Participant's authorities, duties or
          responsibilities; (b) a material reduction by ARC of the Participant's
          compensation; (c) the Group's failure to pay any part of the
          Participant's compensation within four weeks after such compensation
          was due; and (d) requiring the Participant to be based at any office
          located more than 30 miles (based on the most direct route) from ARC's
          current headquarters in Montvale, New Jersey; provided, however, the
          stock sale, spin off, asset sale or other disposition of no more than
          4 of the 6 ARC facilities, resulting in the Participant's termination
          as an officer of such businesses, shall not constitute "Good Reason"
          under clause (a) above.

                                       3
<PAGE>

     2.17. "Group" means UAE Holdings and its Affiliates.

     2.18. "Highstar Funds" means Highstar Renewable Fuels II LLC, a Delaware
          limited liability company, and, in the case of Highstar II, (A) any
          fund controlled by Highstar II or its Affiliates, including, without
          limitation, AIG Highstar Capital, L.P. and/or any successor funds
          thereto (a "Highstar Fund"), (B) any member of Highstar II and any
          stockholder, member or general or limited partner of Highstar II or
          any Highstar Fund (a "Highstar II Partner"), and any corporation,
          partnership, limited liability company, or other entity that is an
          Affiliate of Highstar II, any Highstar II Partner or any Highstar Fund
          (collectively, "Highstar II Affiliates"), (C) any managing director,
          general partner, director, limited partner, officer or employee of any
          Highstar Fund or any Highstar II Affiliate, or any spouse, lineal
          descendant, sibling, parent, heir, executor, administrator,
          testamentary trustee, legatee or beneficiary of any of the foregoing
          Persons described in this clause (C) (collectively, "Highstar II
          Associates"), or (D) any trust, the beneficiaries of which, or any
          corporation, limited liability company or partnership the
          stockholders, members or general or limited partners of which, include
          only such Highstar II Affiliates, Highstar II Associates, Highstar II
          Partners or Highstar Funds.

     2.19. "Mecklenburg" means the Company's indirect interest in the
          cogeneration Facility located in Mecklenburg, Virginia that is held
          indirectly by UAE Holdings.

     2.20. "MIP Allocation" means an allocation to a Participant pursuant to
          Section 5 hereof.

     2.21. "MSW I" means MSW Energy Holdings LLC and its successors and assigns.

     2.22. "Net Distributed Cash Flow" means, with respect to each Allocation
          Year, the amount of cash distributed in that calendar year by UAE
          Holdings and MSW I to their respective shareholders or members, as the
          case may be, attributed to the partners' equity investment and
          interest payments on the $40 Million Senior Note (specifically
          excluding any distributions attributable to Mecklenburg and the
          principal and interest on the $45 Million Senior Note that is due in
          2006); provided, however, that if in any Allocation Year there is an
          Extraordinary Distribution, the Committee shall have the discretion to
          treat such distribution as Net Distributed Cash Flow or adjust the
          Exercise Price of Options under Section 10.2 of the United American
          Energy Holdings Corp. 2004 Stock Option Plan effective January 1,
          2004, provided that at such time as the Exercise Price of Options is
          reduced to zero the Committee may not exercise such discretion and
          Extraordinary Distributions shall be treated as Net Distributed Cash
          Flow (except for any part of an Extraordinary Distribution to which a
          Participant becomes entitled to receive as a dividend distribution on
          Shares received from exercising Options).

     2.23. "Participant" means an executive officer of ARC, as designated by the
          Committee after consultation with the Chief Executive Officer of the
          Company, whose name is set forth on Schedule "A" attached hereto.

     2.24. "Plan" means the Ref-Fuel Holdings LLC Management Incentive Plan, as
          set forth herein and as may be amended from time to time.

                                       4
<PAGE>

     2.25. "Retirement" means the Participant's termination of employment with
          the Group where (a) the Participant is at least fifty-five (55) years
          of age and (b) the Participant's age plus years of service with the
          Group is at least sixty-five (65).

     2.26. "Triggering Event" shall have the meaning ascribed to such term in
          the United American Energy Holdings Corporation 2004 Stock Option
          Plan.

     2.27. "UAE Holdings" means United American Energy Holdings Corp., a
          Delaware corporation, and its successors and assigns (including a
          corporation owning at least 80% of the shares of United American
          Energy Holdings Corp.).

     2.28. "$40 Million Senior Note" means the Senior Notes Due 2013 issued by
          UAE Holdings with an initial face amount of $40,000,000.

     2.29. "$45 Million Senior Note" means the Senior Notes Due 2006 issued by
          UAE Holdings with an initial face amount of $45,000,000.

3.   Administration.

     3.1. The Committee. The Plan shall be administered by the Committee.

     3.2. Authority of the Committee. Except as limited by law or by the
          Certificate of Incorporation or the Bylaws of the Company, and subject
          to the provisions herein, the Committee shall have full power to
          select employees who shall participate in the Plan (after consultation
          with the Chief Executive Officer of the Company); determine the terms
          and conditions of MIP Allocations in a manner consistent with the
          Plan; construe and interpret the Plan and any agreement or instrument
          entered into under the Plan; establish, amend, or waive rules and
          regulations for the Plan's administration; and (subject to the
          provisions of Article 7 herein) amend the terms and conditions of any
          unpaid MIP Allocations to the extent such terms and conditions are
          within the discretion of the Committee. Further, the Committee shall
          make all other determinations which may be necessary or advisable for
          the administration of the Plan. As permitted by law, the Committee may
          delegate its authority as identified herein.

     3.3. Decisions Binding. All determinations and decisions made by the
          Committee pursuant to the provisions of the Plan and all related
          orders and resolutions of the Committee shall be final, conclusive and
          binding on all persons, including the Company, its Affiliates, its
          shareholders, directors, employees, consultants, Participants, and
          their estates and beneficiaries.

4.   Duration of Plan. The Plan shall become effective on the Effective Date and
     shall terminate on the earlier to occur of (a) a draw under any of the
     Equity Contribution Agreements, (b) a Triggering Event, or (c) satisfaction
     of all liabilities under the Plan to Participants and their beneficiaries.

5.   MIP Allocations.

     5.1. Accounts. Each Participant shall have an Account to which his or her
          MIP Allocations shall be credited.

                                       5
<PAGE>

     5.2. Allocation. Subject to Section 5.5 hereof, on December 31 of each
          Allocation Year, the Company shall make a MIP Allocation to the
          Account of each Participant who is employed on the last day of the
          Allocation Year by a member of the Group. The amount of such MIP
          Allocation shall be determined by multiplying the Net Distributable
          Cash Flow for such Allocation Year by the Participant's designated
          percentage, as set forth on the Participant's Award Agreement (a form
          of which is attached hereto as Schedule "B") which shall be the same
          for all Allocation Years.

     5.3. Vesting. Except as otherwise provided herein, (a) the MIP Allocation
          made for the 2004 Allocation Year would vest 25% on December 31, 2004
          with an additional 25% vesting on each of December 31, 2005, December
          31, 2006 and December 31, 2007; (b) the MIP Allocation made for the
          2005 Allocation Year would vest 25% on December 31, 2005 with an
          additional 25% vesting on each of December 31, 2006, December 31, 2007
          and December 31, 2008; and (c) the MIP Allocation made for the 2006
          Allocation Year would vest 25% on December 31, 2006 with an additional
          25% vesting on each of December 31, 2007, December 31, 2008 and
          December 31, 2009.

     5.4. Termination of Employment.

          (a)  Termination by the Group for Cause or by the Participant without
               Good Reason. If a Participant's employment with the Group is
               terminated by the Group for Cause or by the Participant without
               Good Reason, all MIP Allocations made prior to the Date of
               Termination shall be forfeited to the extent not vested on the
               Date of Termination and the Participant shall have no right to
               any future MIP Allocations.

          (b)  Termination by the Group other than for Cause, due to death or
               Disability, or by the Participant with Good Reason. If a
               Participant's employment with the Group is terminated by the
               Group for other than Cause (including, for this purpose, a
               termination on account of death or Disability but not on account
               of Retirement), or by the Participant with Good Reason, all MIP
               Allocations made prior to the Date of Termination shall
               immediately vest to the extent not vested on the Date of
               Termination and, except as otherwise provided in Section 5.5
               hereof, the Participant shall have no right to any future MIP
               Allocations.

          (c)  Termination due to Retirement. If a Participant's employment with
               the Group is terminated on account of his or her Retirement, all
               MIP Allocations made prior to the Date of Termination shall
               immediately vest to the extent not vested on the Date of
               Termination and the Participant shall have no right to any future
               MIP Allocations.

     5.5. Mid-Year Terminations. Notwithstanding Section 5.2 to the contrary, if
          a Participant's employment with the Group is terminated during an
          Allocation Year for reasons described in Section 5.4(b) hereof, then
          on December 31 of the Allocation Year that contains the Participant's
          Date of Termination, the Company shall make a prorated MIP Allocation
          to the Participant's Account for such Allocation Year. The amount of
          such prorated allocation shall be determined by multiplying (a) the
          MIP Allocation the Participant would have received had his or her
          employment not terminated prior to December 31 of such Allocation Year
          by (b) a fraction, the numerator of which is the number of days the
          Participant was employed with the Group during such Allocation Year up

                                       6
<PAGE>

          to and including the Date of Termination, and the denominator of which
          is 365. The prorated MIP Allocation shall be fully vested when made to
          the Participant's Account and shall be paid as though such allocation
          had vested as provided in Section 5.3 hereof.

     5.6. Certain Other Events.

          (a)  Triggering Event. Notwithstanding anything herein to the
               contrary, upon the occurrence of a Triggering Event, all MIP
               Allocations made prior to the date of the Triggering Event shall
               immediately vest to the extent not vested on the date of such
               Triggering Event and the Participant shall have no right to any
               future MIP Allocations.

          (b)  Draws Under Equity Contribution Agreements. Notwithstanding
               anything herein to the contrary, upon the occurrence of a draw
               under any of the Equity Contribution Agreements, the Plan shall
               automatically terminate, all unpaid MIP Allocations made prior to
               the date of the draw shall be forfeited, and the Participant
               shall have no right to any future MIP Allocations.

6.   Payment.

     6.1. Time of Payment.

          (a)  In General. Except as otherwise provided in Section 6.1(b), MIP
               Allocations shall be paid by the Company to the Participant (or,
               in the event of the Participant's death, the Participant's
               beneficiary, or, in the event that no beneficiary shall have been
               designated, the Participant's estate) as soon as reasonably
               practicable following the date on which such MIP Allocations
               vest, but in any event no later than 60 days after the date of
               vesting.

          (b)  Termination Events. If vesting is accelerated with respect to a
               MIP Allocation, as provided in Section 5.4 or 5.5 hereof, the MIP
               Allocation shall be paid by the Company as though such allocation
               had vested as provided in Section 5.3 hereof.

     6.2. Form of Payment. Benefits under the Plan shall be paid in cash.

7.   Amendment and Termination. The Company may at any time and from time to
     time amend, modify or terminate the Plan in whole or in part; provided,
     however, that no amendment, modification or termination shall adversely
     affect the Participant's rights with respect to MIP Allocations credited to
     his or her Account prior to the date of such amendment, modification or
     termination without written consent of the Participant.

8.   Withholding. The Company shall have the power and the right to deduct or
     withhold, or require a Participant to remit to the Company, an amount
     sufficient to satisfy federal, state and local taxes (including the
     Participant's share of employment taxes) required by law or regulation to
     be withheld with respect to the payment of benefits under the Plan.

9.   Dispute Resolution. Claims for benefits under the Plan shall be submitted
     to the Company for review. In the event of any controversy between a
     Participant and the Company arising out of, or relating to, this Plan which

                                       7
<PAGE>

     cannot be settled amicably by the parties, such controversy shall be
     finally, exclusively and conclusively settled by mandatory arbitration
     conducted expeditiously in accordance with the American Arbitration
     Association rules, by a single independent arbitrator. If the parties are
     unable to agree on the selection of an arbitrator, then either the
     Participant or the Company may petition the American Arbitration
     Association for the appointment of the arbitrator, which appointment shall
     be made within ten (10) days of the petition therefor. Either party to the
     dispute may institute such arbitration proceeding by giving written notice
     to the other party. A hearing shall be held by the arbitrator in New York,
     New York within thirty (30) days of his or her appointment. The decision of
     the arbitrator shall be final and binding upon the parties and shall be
     rendered pursuant to a written decision that contains a detailed recital of
     the arbitrator's reasoning. Judgment upon the award rendered may be entered
     in any court having jurisdiction thereof.

10.  Unfunded Plan. The Plan is intended to be an unfunded plan maintained
     primarily for the purpose of providing deferred compensation for a select
     group of management or highly compensated employees, within the meaning of
     Sections 201, 301 and 401 of the Employee Retirement Income Security Act of
     1974, as amended. All payments pursuant to the Plan shall be made from the
     general funds of the Company and no special or separate fund shall be
     established or other segregation of assets made to assure payment. No
     Participant or other person shall have under any circumstances any interest
     in any particular property or assets of the Company as a result of
     participating in the Plan. Notwithstanding the foregoing, the Company may
     (but shall not be obligated to) create one or more grantor trusts, the
     assets of which are subject to the claims of the Company's creditors, to
     assist it in accumulating funds to pay its obligations under the Plan.

11.  Successors and Assigns. The Plan shall be binding on all successors and
     assigns of the Company and the Participant, including without limitation,
     the estate of such Participant and the executor, administrator or trustee
     of such estate, or any receiver or trustee in bankruptcy or representative
     of the Participant's creditors.

12.  Nontransferability. No Participant may sell, transfer, assign, pledge,
     hypothecate or otherwise encumber his or her right or interest under the
     Plan.

13.  No Right to Employment or Awards. Participation in the Plan shall impose no
     obligation on the Group to continue the employment of a Participant and
     shall not lessen or affect the Group's right to terminate the employment of
     such Participant.

14.  Miscellaneous.

     14.1. Legal Construction. Except where otherwise indicated by the context,
          the plural shall include the singular, and the singular shall include
          the plural. References to sections, rules or regulations shall be
          deemed to include references to any successor sections, rules or
          regulations.

     14.2. Severability. In the event any provision of the plan shall be held
          illegal or invalid for any reason, the illegality or invalidity shall
          not affect the remaining parts of the Plan, and the Plan shall be
          construed and enforced as if the illegal or invalid provision had not
          been included.

                                       8
<PAGE>

     14.3. Governing Law. To the extent not preempted by federal law, the Plan
          shall be construed in accordance with and governed by the laws of
          Delaware.

                                       9

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