Document:

exv10w1

 

EXHIBIT 10.1

Text of Amendment to Certain Stock Option Agreements

Applicable Agreements are amended to add the following at the end of each such Applicable
Agreement:

     “Extension of Post-Termination Exercise Period. Notwithstanding any provision herein or the
Plan to the contrary, if, at any time during the time period specified herein for exercising the
Option following the Optionee’s termination of employment or service (the “Post-Termination
Exercise Period”), the Company is not current in its reporting obligations under the Securities
Exchange Act of 1934, the vested portion of the Option shall remain exercisable until ninety (90)
calendar days following the date upon which the Company again becomes current in its reporting
obligations under the Securities Exchange Act of 1934; provided, however, that in the event the
foregoing extension is triggered, then in no event may the Option be exercised later than the
earlier of the expiration of the term of the Option as set forth herein and/or the applicable grant
notice or December 31, 2007.”exv10w2

 

EXHIBIT 10.2

Text of Amendment to Certain Stock Option Agreements of George Samenuk

Mr. Samenuk’s agreements are amended to add the following at the end of each such agreement:

     “Extension of Post-Termination Exercise Period. Notwithstanding any provision herein or the
Plan to the contrary, the vested portion of the Option shall remain exercisable for thirty (30)
calendar days following January 7, 2007; provided, however, that in no event may the Option be
exercised later than the earlier of the expiration of the term of the Option as set forth herein
and/or the applicable grant notice.”exv10w1

 

Exhibit 10.1

WCA Waste Corporation

MANAGEMENT INCENTIVE PLAN

(As Amended and Restated Effective January 1, 2007)

I. BACKGROUND AND OBJECTIVES

The overall executive compensation strategy of WCA Waste Corporation (“WCA” or “the Company”) is to
provide key executives with total direct pay opportunity that generally is competitive with similar
waste management companies. The two primary elements of the WCA cash compensation program are base
salary and the Management Incentive Plan (the “MIP” or the “Plan”). WCA base salaries generally
are competitive with industry standards and are used to reward an executive’s sustained job
performance over time. The MIP rewards annual performance and is described in detail in this
document.

The MIP for WCA provides annual incentive compensation opportunity for key executives for achieving
goals of WCA. The following provisions hereof define MIP eligibility, the size of potential award
opportunities, performance measurement, form and timing of award payments, administrative
guidelines and definitions for ongoing MIP management.

II. ELIGIBILITY

MIP award eligibility will be approved by the Compensation Committee of the WCA Board of Directors
(the “Compensation Committee”) at the beginning of each performance/award period. Generally, MIP
participants will be selected from key executives who primarily are responsible for the annual
growth and profitability of WCA, i.e., generally senior vice presidents and above. The number of
eligible MIP participants is expected to vary from year to year, as WCA expands and as the
Company’s compensation strategy and programs are refined.

III. AWARD OPPORTUNITIES

At the beginning of each fiscal year, each participant in the MIP will be assigned a targeted award
opportunity, expressed as a percent of salary, that can decrease to zero, based on performance
achievement. MIP award opportunities may be redefined from time to time, as modifications are made
in WCA’s executive compensation strategy.

1

 

Within 21/2 months after the end of each fiscal year, each participant’s salary rate at the end of
the prior fiscal year (just ended) will be multiplied by the actual MIP award percentage earned to
determine the dollar value of the award for the prior performance cycle.

IV. PERFORMANCE MEASURES

The MIP will provide annual incentive pay at risk, with potential MIP awards tied to WCA goal
achievement and individual executive performance. When MIP performance goals are met, the MIP
awards plus base salary will approximate total cash pay near the 75th percentile of the market
ranges for most plan participants.

The two primary performance measures for 2007 will be:

	 	•	 	Targeted EBITDA of $45.0 million from operations owned on January 1, 2007 while
maintaining capital expenditures for these operations within 110% of budget, weighted
50%; and
	 
	 	•	 	Investing $100 million in acquisitions that are mutually approved and accepted by
management and the Board, weighted 50%.

The Compensation Committee and the senior officers of WCA jointly will set MIP performance targets
at the beginning of each fiscal year. Performance goals for MIP awards may be equal to or exceed
the goals in the WCA business plan. MIP performance goals may be adjusted by the Compensation
Committee during the year, if a major change occurs in the Company’s capital structure, e.g., a
major acquisition.

In addition to the MIP targets, the Compensation Committee and the senior officers of WCA jointly
will establish a minimum acceptable performance goals, i.e., the performance levels below which no
incentive will be paid. MIP awards will be interpolated for actual performance falling between the
minimum acceptable and targeted goals. Prior to fiscal year end, the WCA senior officers and
Compensation Committee jointly will establish appropriate MIP goals for the next fiscal year, in
support of the new WCA business plan.

2

 

Exhibit 1 presents the performance matrix for calculating MIP awards for 2007. This performance
matrix may be revised in the future, as the Company’s business strategy and performance focus of
WCA changes.

V. FORM AND TIMING OF ANNUAL AWARD COMPONENTS

MIP awards will be paid 50% in cash and 50% in restricted shares of common stock of the Company,
$0.01 par value per share, annually within 21/2 months after year-end; provided, however, the Company
shall deduct from all MIP awards payable under this Plan any taxes required to be withheld by the
Federal or any state or local government. The number of shares of restricted stock payable
pursuant to the immediately preceding sentence will be computed by dividing the dollar amount
earned by the greater of $9.50 or the average of the closing bid and ask prices on the NASDAQ
market for the last 10 trading days of the calendar year in which the MIP award is earned. In
addition, the restricted shares will vest upon the earlier of one-third annually on each of the
three (3) anniversaries of the date the MIP award is earned and paid for the applicable MIP
measurement year, a Change of Control as defined in the participants’ employment contracts or the
achievement of a specific growth goal. For the 2007 MIP, the specific growth goal to accelerate
vesting will be reporting fifty-four cents ($0.54) earnings per share for any calendar year or
other rolling four (4) consecutive calendar quarter period during the vesting period for restricted
shares awarded for 2007 before extraordinary items in accordance with GAAP. No participant shall
be permitted to elect to defer all or any portion of his/her award relating to any relevant
measurement period hereunder.

All awards payable under this Plan shall be the obligation of the Company. If the Company
determines that any person entitled to payments under this Plan is physically or mentally
incompetent to receive or properly receipt for such payments, the Company shall make such payments
to the legal guardian or other personal representative of such person for the use and benefit of
such person. If the Company for any reason is unable to determine with reasonable certainty the
proper person to pay pursuant to the terms of the immediately preceding sentence, the Company shall
pay any amounts due hereunder into a court of competent jurisdiction in an interpleader proceeding
for purposes of being directed by such court as to the proper disposition of any such amounts due
hereunder. Any such payments so made by the Company, to the extent of the amounts thereof, shall
fully discharge the Company’s obligations hereunder.

3

 

Should the participant die prior to receiving all amounts due under this Plan, any unpaid amounts
due hereunder shall be made to the participant’s spouse, if such spouse survives the participant,
or, if there is no surviving spouse, to the legal representative of the participant’s estate, or if
no administration is had on the estate, to the person or persons to whom participant’s property
shall pass by applicable laws of descent and distribution.

VI. ADMINISTRATIVE GUIDELINES AND DEFINITIONS

The MIP shall be administered by the Compensation Committee. The Compensation Committee shall have
such authority and powers and may consult with WCA’s CEO or such other person or persons as it
shall deem necessary or advisable to facilitate the intent and purpose of the MIP. All decisions
made by the Compensation Committee shall be final and binding.

	 	•	 	Employee Termination – A participant must be an employee of the Company on the final
day of the measurement period.
	 
	 	•	 	New Hires – Newly hired participants shall earn MIP awards on a pro-rata basis,
based on their date of employment.
	 
	 	•	 	Base Salary Rate – Base salary for MIP award calculations shall be the annualized
base rate in effect at the end of the performance cycle for which the award is paid.
	 
	 	•	 	Support Documentation – The WCA CFO shall be responsible for maintaining all
necessary support documentation regarding performance and bonus calculations under the
MIP.

VII. MISCELLANEOUS

	 	(a)	 	Rights of Participants. Nothing in this Plan shall be construed to:

	 	(i)	 	Give the participant any rights whatsoever with respect to any
MIP award until such award becomes vested, nonforfeitable and distributable in
accordance with the terms of this Plan;
	 
	 	(ii)	 	Limit in any way the right of the Company to terminate the
participant’s employment by the Company at any time;

4

 

	 	(iii)	 	Give the participant or any other person any interest in any
fund or in any specific asset or assets of the Company;
	 
	 	(iv)	 	Give the participant or any other person any interest or right
other than those of any unsecured general creditor of the Company; or
	 
	 	(v)	 	Be evidence of any agreement or understanding, express or
implied, that the Company will employ the participant in any particular
position or at any particular rate of remuneration.

	 	(b)	 	Nonalienation of Benefits. No right or benefit under this Plan shall be
subject to anticipation, alienation, sale, assignment, pledge, encumbrance, or charge,
and any attempt to anticipate, alienate, sell, assign, pledge, encumber, or charge the
same will be void. No right to interest hereunder shall in any manner be liable for or
subject to any debts, contracts, liabilities, or torts of the person entitled to such
right or interest.
	 
	 	(c)	 	Prerequisites to Benefits. Neither the participant, nor any person claiming
through the participant, shall have any right or interest in this Plan, or any MIP
award hereunder, unless and until all the terms, conditions, and provisions of this
Plan which affect the participant or such other person shall have been complied with as
specified herein.
	 
	 	(d)	 	Section 162m Compliance. Should any participant in the Plan be or become a
“covered employee” as such term is defined in section 1.162-27(c)(2) of the Treasury
Regulations, then notwithstanding anything herein to the contrary, with respect to any
action taken under the Plan by the Compensation Committee in respect of any such
covered employee, the Compensation Committee shall be comprised solely of two or more
“outside directors” of the Company as such term is defined in section 1.162-27(e)(3) of
the Treasury Regulations, the material terms of the Plan shall be disclosed to and
approved by the stockholders of the Company prior to the payment of any MIP awards and
the Plan shall, in all other respects, meet the requirements of section 162(m) of the
Code and the regulations

5

 

	 	 	 	promulgated pursuant thereto, prior to any payments hereunder. In furtherance of
the above provisions of this Section VII(d), the Compensation Committee shall
bifurcate the Plan so as to restrict, limit or condition the use or application of
any provision of the Plan to participants who are covered employees without so
restricting, limiting or conditioning the Plan with respect to other participants,
unless the Compensation Committee, in its sole discretion, determines to apply such
restrictions, limitations or conditions to participants who are not covered
employees.

	 	(e)	 	Bonus Arrangement. This Plan is intended to be a bonus program that is
designed to provide an on-going, pecuniary incentive for the participant to produce the
participant’s best efforts to increase the value of the Company. This Plan is not
intended to provide retirement income or to defer the receipt of payments hereunder to
the termination of the participant’s covered employment or beyond. This Plan is
strictly an incentive bonus program (as described in U.S. Department of Labor
Regulation Section 2510.3-2(c) or any successor thereto), and not a pension or welfare
benefit plan that is subject to the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”). All interpretations and determinations hereunder shall be made on a
basis consistent with the status of the Plan as a bonus program.
	 
	 	(f)	 	Amendment. This Plan may be modified or terminated by the Company at any time;
provided, however, that no such modification or termination shall affect any right to
any MIP awards that are vested at the time of such modification or termination except
with the written consent of the affected participant.
	 
	 	(g)	 	Powers of the Company. The existence of outstanding and unpaid contingent
interests under the Plan shall not affect in any way the right or power of the Company
to make or authorize any adjustments, recapitalization, reorganization or other changes
in the Company’s capital structure or in its business, or any merger or consolidation
of the Company, or any issue of bonds, debentures, common or preferred stock, if
applicable, or the dissolution or liquidation of the

6

 

	 	 	 	Company, or any sale or transfer of all or any part of its assets or business, or
any other act or proceeding, whether of a similar character or otherwise.

	 	(h)	 	Waiver. A waiver by the Company, or the participant, of any of the terms or
conditions contained in the Plan shall not be construed as a general waiver by such
party of any other terms or conditions contained in this Plan.
	 
	 	(i)	 	Separability. If any provision or provisions of this Plan shall be found to be
invalid, illegal, or unenforceable in any respect, such invalid, illegal, or
unenforceable provision shall be severed from this Plan and shall not affect the
validity, legality and enforceability of the remainder of this Plan.
	 
	 	(j)	 	Gender, Tense and Headings. Whenever the context requires, words of the
masculine gender used herein shall include the feminine and neuter, and words used in
singular shall include plural. Headings of Articles and Sections, as used herein, are
inserted solely for convenience and reference and constitute no part of this Plan.
	 
	 	(k)	 	Governing Law. This Plan shall be subject to and governed by the laws of the
State of Texas and, to the extent applicable, the laws of the United States.
	 
	 	(l)	 	Notice. Any notice required or permitted to be given under this Plan shall be
sufficient if in writing and hand delivered, or sent by registered or certified mail,
to the Compensation Committee, the Company, participant or beneficiary, as applicable,
at the address last furnished by such person. Such notice shall be deemed given as of
the date of delivery or, if delivery is made by mail, as of the dates shown on the
postmark on the receipts for registration or certification.
	 
	 	(m)	 	Effective Date. This Plan is effective as of January 1, 2007 and any amendment
of this Plan shall be effective as of the date provided therein.

7

 

EXHIBIT 1

WCA Corporation

MANAGEMENT INCENTIVE PLAN

AWARD OPPORTUNITY VS CORPORATE PERFORMANCE

	 	 	 	 	 	 	 	 	 
	          % Targeted	 	% CEO/COO Base	 	% Base Salary
	       Goal Achieved	 	Salary Earned	 	Earned Below COO
	100% or Above
	 	100% of Salary	 	90% of Salary
	99%
	 	 	95	%	 	 	85.5	%
	98%
	 	 	90	%	 	 	81.0	%
	97%
	 	 	85	%	 	 	76.5	%
	96%
	 	 	80	%	 	 	72.0	%
	95%
	 	 	75	%	 	 	67.5	%
	94%
	 	 	70	%	 	 	63.0	%
	93%
	 	 	65	%	 	 	58.5	%
	92%
	 	 	60	%	 	 	54.0	%
	91%
	 	 	55	%	 	 	49.5	%
	90%
	 	 	50	%	 	 	45.0	%
	89%
	 	 	45	%	 	 	40.5	%
	88%
	 	 	40	%	 	 	36.0	%
	87%
	 	 	35	%	 	 	31.5	%
	86%
	 	 	30	%	 	 	27.0	%
	85%
	 	 	25	%	 	 	22.5	%
	<85% of Target
	 	0% of Salary	 	0% of Salary

Exhibit 1-1

 

EXHIBIT 2

WCA Corporation

MANAGEMENT INCENTIVE PLAN

SAMPLE AWARD CALCULATION

ASSUMPTIONS:

CEO’s salary is $300,000.

Targeted MIP award is 200% of salary or $600,000.

EBITDA is 90% of target and Acquisitions is 100% of target.

 

	 	 	 	 	 
	CALCULATIONS:
	 	 	 	 
	Current Salary:
	 	$	300,000	 
	Incentive Target:
	 	 	x 2.00	 
	 
	 	 	 
	 
	 	$	600,000	 

A. EBITDA Performance Component:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Incentive Target:
	 	$	300,000	 	 	 	 	 	 	 	 	 
	EBITDA Adjustment:
	 	 	x .50	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Unweighted EBITDA Component:
	 	 	 	 	 	$	150,000	 	 	 	 	 
	Weighting of EBITDA Component:
	 	 	 	 	 	 	x 1.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Weighted EBITDA Component:
	 	 	 	 	 	 	 	 	 	$	150,000	 

B. Acquisition Performance:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Incentive Target:
	 	$	300,000	 	 	 	 	 	 	 	 	 
	Acquisition Adjustment:
	 	 	x 1.00	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Unweighted Acquisition Performance Component:
	 	 	 	 	 	$	300,000	 	 	 	 	 
	Weighting of Acquisition Performance Component:
	 	 	 	 	 	 	x 1.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Weighted Acquisition Performance Component:
	 	 	 	 	 	 	 	 	 	$	300,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total MIP Award Adjusted for Corporate Performance:
	 	 	 	 	 	 	 	 	 	$	450,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 

Exhibit 2-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]