Document:

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EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into on this 25th
day of January 2007, but effective as of the Employment Date set forth below, by and between Waste
Management, Inc. (the “Company”), and Michael Jay Romans (the “Executive”).

     1. Employment.

     The Company shall employ Executive, and Executive shall be employed by the Company upon the
terms and subject to the conditions set forth in this Agreement.

     2. Term of Employment.

     The period of Executive’s employment under this Agreement shall commence on January 25, 2007
(“Employment Date”), and shall continue for a period of two (2) years, and shall automatically be
renewed for successive one (1) year periods on each anniversary of the Employment Date thereafter,
unless Executive’s employment is terminated in accordance with Section 5 below. The period during
which Executive is employed hereunder shall be referred to as the “Employment Period.”

     3. Duties and Responsibilities.

     (a) Executive shall serve as the Senior Vice President, People. In such capacity, Executive
shall perform such duties and have the power, authority, and functions commensurate with such
position in similarly-sized public companies, and have and possess such other authority and
functions consistent with such position as may be assigned to Executive from time to time by the
Chief Executive Officer or the Board of Directors (the “Board”) of the Company.

     (b) Executive shall devote substantially all of his working time, attention and energies to
the business of the Company, and its affiliated entities. Executive may make and manage his
personal investments (provided such investments in other activities do not violate the provisions
of Section 10 of this Agreement), be involved in charitable and professional activities, and, with
the prior written consent of the Board, serve on boards of other for-profit entities; provided such
activities do not materially interfere with the performance of his duties hereunder (however, the
Board does not typically allow officers to serve on more than one public company board at a time).

     4. Compensation and Benefits.

     (a) Base Salary. During the Employment Period, the Company shall pay Executive a base salary
at the annual rate of Three Hundred Seventy-Five Thousand Dollars ($375,000.00) per year, or such
higher rate as may be determined from time to time by the Company (“Base Salary”). Such Base
Salary shall be paid in accordance with the Company’s standard payroll practice for its executive
officers. Once increased, Base Salary shall not be reduced.

 

 

     (b) Annual Bonus. During the Employment Period, Executive will be entitled to
participate in an annual incentive compensation plan of the Company, as established by the
Management Development and Compensation Committee of the Board (“Compensation Committee”) from time
to time. Executive’s target annual bonus will be seventy-five percent (75%) of his Base Salary in
effect for such year (the “Target Bonus”), and his actual annual bonus may range from 0% to 150% of
Base Salary (i.e., a maximum possible bonus of two times the Target Bonus), and will be determined
based upon (i) the achievement of certain corporate performance goals, as may be established and
approved by from time to time by the Compensation Committee, and (ii) the achievement of personal
performance goals as may be established by Executive’s immediate supervisor.

     Executive’s annual bonus for calendar year 2007 will be prorated based on the number of
calendar days in 2007 from and after the Employment Date, divided by 365 days, provided Executive
remains employed through the end of the 2007 calendar year. The annual bonus for calendar year
2007 will be paid in 2008, if earned, at the same time as similarly situated executive employees
receive or would otherwise receive their bonuses, subject to the terms of the annual incentive
program generally applicable to similarly situated employees.

     (c) Benefit Plans and Vacation. Subject to the terms of such plans, Executive shall be
eligible to participate in or receive benefits under any pension plan, profit sharing plan, salary
deferral plan, medical and dental benefits plan, life insurance plan, short-term and long-term
disability plans, or any other health, welfare or fringe benefit plan, generally made available by
the Company to similarly-situated executive employees. The Company shall not be obligated to
institute, maintain, or refrain from changing, amending, or discontinuing any benefit plan or
perquisite, so long as such changes are generally applicable to similarly-situated employees.

     During the Employment Period, Executive shall be entitled to vacation each year in accordance
with the Company’s policies in effect from time to time, but in no event less than four (4) weeks
paid vacation per calendar year. Pursuant to Company policy, vacation days may not be carried over
from year to year, and vacation not used by the end of the year is forfeited.

     (d) Expense Reimbursement. The Company shall promptly reimburse Executive for the ordinary
and necessary business expenses incurred by Executive in the performance of the duties hereunder in
accordance with the Company’s customary practices applicable to its executive officers.

     (e) Other Perquisites. Executive shall be entitled to all perquisites provided to Senior Vice
Presidents of the Company as approved by the Compensation Committee, and as they may exist from
time to time, including the following:

	 	(i)	 	Automobile allowance at the annual rate of Twelve Thousand Dollars
($12,000.00), payable in accordance with the Company’s standard payroll practice for
its executive officers and prorated in any year that Executive does not work a full
calendar year;
	 
	 	(ii)	 	Financial planning services at actual cost, and not to exceed Fifteen Thousand
Dollars ($15,000.00) annually;

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	 	(iii)	 	Social organization initiation fees and dues with a benefit of a one-time
initiation fee at actual cost (not to exceed ten percent (10%) of Executive’s Base
Salary), and monthly dues at actual cost (not to exceed $500 per month); and
	 
	 	(iv)	 	An annual physical examination on a program designated by the Company.

     (f) Equity Based Incentive Awards. In order to compensate Executive for the forfeited awards
from his prior employer, on or about the Employment Date, the Company will grant Executive a
one-time award of 10,000 Restricted Stock Units equivalent to the Company’s common stock (“RSU’s”)
pursuant to the Waste Management, Inc. 2004 Stock Incentive Plan. This grant of RSU’s will be
subject to the restrictions imposed by, and governed by the provisions of, the 2004 Stock Incentive
Plan and the award agreement issued to Executive in connection thereto. The RSU’s shall vest in
their entirety on the third (3rd) anniversary of the grant date of the award, unless
earlier vested or forfeited pursuant to the terms of the 2004 Stock Incentive Plan or award
agreement.

     On or about January 29, 2007, Executive will also be entitled to receive grant(s) under the
Company’s equity based compensation plan(s) to the same extent and on the same basis as other
similarly-situated executive employees generally.

     (g) Office Location and Residence Relocation. Executive will maintain his business office at
the Company’s corporate offices in Houston, Texas. Executive will also relocate his residence to
the Houston, Texas area. Executive’s relocation of his residence from Florida to the Houston,
Texas area will be eligible for coverage under the Company’s relocation plan.

     5. Termination of Employment.

     Executive’s employment hereunder may be terminated during the Employment Period under the
following circumstances:

     (a) Death. Executive’s employment hereunder shall terminate upon Executive’s death.

     (b) Total Disability. The Company may terminate Executive’s employment hereunder upon
Executive becoming “Totally Disabled.” For purposes of this Agreement, Executive shall be
considered “Totally Disabled” if Executive has been physically or mentally incapacitated so as to
render Executive incapable of performing the essential functions of Executive’s position with or
without reasonable accommodation. Executive’s receipt of disability benefits under the Company’s
long-term disability plan or receipt of Social Security disability benefits shall be deemed
conclusive evidence of Total Disability for purpose of this Agreement.

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     (c) Termination by the Company for Cause. The Company may terminate
Executive’s employment hereunder for “Cause” at any time after providing a Notice of
Termination for Cause to Executive.

	 	(i)	 	For purposes of this Agreement, the term “Cause” means any of the following:
(A) willful or deliberate and continual refusal to perform Executive’s employment
duties reasonably requested by the Company after receipt of written notice to Executive
of such failure to perform, specifying such failure (other than as a result of
Executive’s sickness, illness or injury) and Executive fails to cure such
nonperformance within ten (10) days of receipt of said written notice; (B) breach of
any statutory or common law duty of loyalty to the Company; (C) has been convicted of,
or pleaded nolo contendre to, any felony; (D) willfully or intentionally caused
material injury to the Company, its property, or its assets; (E) disclosed to
unauthorized person(s) proprietary or Confidential Information of the Company; (F) any
material violation or a repeated and willful violation of Company policies or
procedures, including but not limited to, the Company’s Code of Business Conduct and
Ethics (or any successor policy) then in effect; or (G) breach of any of the covenants
set forth in Section 10 hereof.
	 
	 	(ii)	 	For purposes of this Agreement, the phrase “Notice of Termination for Cause”
shall mean a written notice that shall indicate the specific termination provision in
Section 5(c)(i) relied upon, and shall set forth in reasonable detail the facts and
circumstances which provide the basis for termination for Cause.

     (d) Voluntary Termination by Executive. Executive may terminate his employment hereunder with
or without Good Reason at any time upon written notice to the Company.

	 	(i)	 	A termination for “Good Reason” means a resignation of employment by Executive
by written notice (“Notice of Termination for Good Reason”) given to the Company’s
Chief Executive Officer or President within ninety (90) days after the occurrence of
the Good Reason event, unless such circumstances are substantially corrected prior to
the date of termination specified in the Notice of Termination for Good Reason. For
purposes of this Agreement, “Good Reason” shall mean the occurrence or failure to cause
the occurrence, as the case may be, without Executive’s express written consent, of any
of the following circumstances: (A) the Company substantially changes Executive’s core
duties or removes Executive’s responsibility for those core duties, so as to
effectively cause Executive to no longer be performing the duties of his position
(except in each case in connection with the termination of Executive’s employment for
Death, Total Disability, or Cause, or temporarily as a result of Executive’s illness or
other absence); provided that if the Company becomes a fifty percent or more subsidiary
of any other entity, Executive shall be deemed to have a substantial change in the core
duties of his position unless he is also the equivalent of a Senior Vice-President of
the Company or such other successor entity of the ultimate parent entity; (B) removal
or the non-reelection of Executive from the officer position with the Company specified
herein, or removal of Executive from

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	 	 	 	any of his then officer positions; (C) any material breach by the Company of any
provision of this Agreement, including without limitation Section 10 hereof; or (D)
failure of any successor to the Company (whether direct or indirect and whether by
merger, acquisition, consolidation or otherwise) to assume in a writing delivered to
Executive upon the assignee becoming such, the obligations of the Company hereunder.
	 
	 	(ii)	 	A “Notice of Termination for Good Reason” shall mean a notice that shall
indicate the specific termination provision relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
Termination for Good Reason. The failure by Executive to set forth in the Notice of
Termination for Good Reason all facts and circumstances which contribute to the showing
of Good Reason shall not waive any right of Executive hereunder or preclude Executive
from asserting such fact or circumstance in enforcing his rights hereunder. The Notice
of Termination for Good Reason shall provide for a date of termination not less than
ten (10) days nor more than sixty (60) days after the date such Notice of Termination
for Good Reason is given; provided that in the case of the events set forth in Sections
5(d)(i)(A) or (B), the date may be five (5) business days after the giving of such
notice. The Company, at its sole discretion, may waive this requirement.

     (e) Termination by the Company without Cause. The Company may terminate Executive’s
employment hereunder without Cause at any time upon written notice to Executive.

     (f) Effect of Termination. Upon any termination of employment for any reason, Executive shall
immediately resign from all Board memberships and other positions with the Company or any of its
subsidiaries held by him at such time.

     6. Compensation Following Termination of Employment.

     In the event that Executive’s employment hereunder is terminated in a manner as set forth in
Section 5 above, Executive shall be entitled to the compensation and benefits provided under this
Section 6, in each case subject to potential reduction as may be required by Section 23, as
applicable to the form of termination:

     (a) Termination by Reason of Death. In the event that Executive’s employment is terminated by
reason of Executive’s death, the Company shall pay the following amounts to Executive’s beneficiary
or estate:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to the date of death,
any accrued but unpaid expenses required to be reimbursed under this Agreement, any
vacation accrued to the date of termination, any earned but unpaid bonuses for any
prior calendar year, and, to the extent not otherwise paid, a prorated bonus or
incentive compensation payment for the current calendar year to the extent payments are
awarded to similarly-situated executive employees of the Company, and paid at the same
time such executive employees are paid.

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	 	(ii)	 	Any benefits to which Executive may be entitled pursuant to the plans, policies
and arrangements (including those referred to in Section 4(c) hereof), as determined
and paid in accordance with the terms of such plans, policies and arrangements.

     (b) Termination by Reason of Total Disability. In the event that Executive’s employment is
terminated by the Company by reason of Executive’s Total Disability (as determined in accordance
with Section 5(b)), the Company shall pay the following amounts to Executive:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to the date of
termination, any accrued but unpaid expenses required to be reimbursed under this
Agreement, any vacation accrued to the date of termination, and any earned but unpaid
bonuses for any prior calendar year. Executive shall also be eligible for a prorated
bonus or incentive compensation payment for the calendar year in which Executive is
terminated to the extent such awards are made to similarly-situated executive employees
of the Company, and paid at the same time such executive employees are paid.
	 
	 	(ii)	 	Any benefits to which Executive may be entitled pursuant to the plans, policies
and arrangements (including those referred to in Section 4(c) hereof) shall be
determined and paid in accordance with the terms of such plans, policies and
arrangements.

     (c) Termination for Cause. In the event that Executive’s employment is terminated by the
Company for Cause, the Company shall pay the following amounts to Executive:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to the date of
termination, any accrued but unpaid expenses required to be reimbursed under this
Agreement, any vacation accrued to the date of termination, and any earned but unpaid
bonuses for any prior calendar year.
	 
	 	(ii)	 	Any benefits to which Executive may be entitled pursuant to the plans, policies
and arrangements (including those referred to in Section 4(c) hereof up to the date of
termination) shall be determined and paid in accordance with the terms of such plans,
policies and arrangements.

     (d) Voluntary Termination by Executive. In the event that Executive voluntarily terminates
employment other than for Good Reason, the Company shall pay the following amounts to Executive:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to the date of
termination, any accrued but unpaid expenses required to be reimbursed under this
Agreement, any vacation accrued to the date of termination, and any earned but unpaid
bonuses for any prior calendar year.

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	 	(ii)	 	Any benefits to which Executive may be entitled pursuant to the plans, policies
and arrangements (including those referred to in Section 4(c) hereof up to the date of
termination) shall be determined and paid in accordance with the terms of such plans,
policies and arrangements.

     (e) Termination by the Company Without Cause Outside a Change in Control Period; Termination
by Executive for Good Reason Outside a Change in Control Period. In the event that Executive’s
employment is terminated by the Company outside a Change in Control Period (as defined in Section
7) for reasons other than death, Total Disability or Cause, or Executive terminates his employment
for Good Reason outside of a Change in Control Period, the Company shall pay the following amounts
to Executive:

	 	(ii)	 	Any accrued but unpaid Base Salary for services rendered to the date of
termination, any accrued but unpaid expenses required to be reimbursed under this
Agreement, any vacation accrued to the date of termination, and any earned but unpaid
bonuses for any prior calendar year.
	 
	 	(ii)	 	Any benefits to which Executive may be entitled pursuant to the plans, policies
and arrangements referred to in Section 4(c) hereof shall be determined and paid in
accordance with the terms of such plans, policies and arrangements.
	 
	 	(iii)	 	Subject to Executive’s execution of the Release (as defined in Section 7), an
amount equal to two times the sum of Executive’s Base Salary plus his Target Annual
Bonus (in each case, as then in effect), of which one-half shall be paid in a lump sum
within ten (10) days after such termination and one-half shall be paid during the two
(2) year period beginning on the date of Executive’s termination and shall be paid at
the same time and in the same manner as Base Salary would have been paid if Executive
had remained in active employment until the end of such period.
	 
	 	(iv)	 	Subject to Executive’s execution of the Release (as defined in Section 7), the
Company at its expense will continue for Executive and Executive’s spouse and
dependents, all health benefit plans, programs or arrangements, whether group or
individual, disability, and other benefit plans, in which Executive was entitled to
participate at any time during the twelve-month period prior to the date of
termination, until the earliest to occur of (A) two years after the date of
termination; (B) Executive’s death (provided that benefits provided to Executive’s
spouse and dependents shall not terminate upon Executive’s death); or (C) with respect
to any particular plan, program or arrangement, the date Executive becomes eligible to
participate in a comparable benefit provided by a subsequent employer. In the event
that Executive’s continued participation in any such Company plan, program, or
arrangement is prohibited, the Company will arrange to provide Executive with benefits
substantially similar to those which Executive would have been entitled to receive
under such plan, program, or arrangement, for such period on a basis which provides
Executive with no additional after tax cost.

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	 	(v)	 	Subject to Executive’s execution of the Release (as defined in Section 7),
Executive shall be eligible for a bonus or incentive compensation payment, at the same
time, on the same basis, and to the same extent payments are made to other
similarly-situated executive employees of the Company, prorated for the year in which
Executive is terminated.

     (f) Suspension and Refund of Termination Benefits for Subsequently Discovered Cause.
Notwithstanding any provision of this Agreement to the contrary, if within one (1) year of
termination of employment of Executive by the Company for any reason other than for Cause, it is
determined by Company that Executive could have been terminated for Cause then, to the extent
permitted by law:

	 	(i)	 	the Company may elect to cancel any and all payments of any benefits otherwise
due Executive, but not yet paid, under this Agreement or otherwise; and
	 
	 	(ii)	 	Executive will refund to the Company any amounts, plus interest, previously
paid by Company to Executive pursuant to Subsections 6(e)(iii), 6(e)(iv) or 6(e)(v).

     7. Resignation by Executive for Good Reason or Termination by Company Without Cause During a
Change in Control Period.

     (a.) Certain Terminations During a Change in Control Period. Subject to potential reduction
as may be required by Section 23, in the event a Change in Control occurs and (x) Executive
terminates his employment for Good Reason during a Change in Control Period, or (y) the Company
terminates Executive’s employment without Cause (and for reason other than Death of Total
Disability) during a Change in Control Period, the Company shall, subject to Executive’s execution
of the Release (as defined in this Section 7), pay the following amounts to Executive:

	 	(i)	 	The payments and benefits provided for in Section 6(e), except that (A) the
amount and period with respect to which severance is calculated pursuant to Section
6(e)(iii) will be three (3) years and the amount shall be paid in a lump-sum and (B)
the benefit continuation period in Section 6(e)(iv) shall be for three (3) years.
	 
	 	(ii)	 	Executive shall also receive a bonus or incentive compensation payment for the
calendar year of the termination, payable at 100% of the maximum bonus available to
Executive, prorated as of the effective date of the employment termination. Such bonus
payment shall be payable within five (5) days after the effective date of Executive’s
employment termination. Except as may be provided under this Section 7 or under the
terms of any incentive compensation, employee benefit, or fringe benefit plan
applicable to Executive at the time of Executive’s termination of employment, Executive
shall have no right to receive any other compensation, or to participate in any other
plan, arrangement or benefit, with respect to future periods after such resignation or
termination.

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     (b) Certain Definitions.

	 	(i)	 	For purposes of this Agreement, “Change in Control” means the first to occur on
or after the date on which this Agreement is first signed, the occurrence of any of the
following events:

(A) any Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing twenty-five percent (25%) or more of the
combined voting power of the Company’s then outstanding voting securities;

(B) the following individuals cease for any reason to constitute a majority of the
number of directors then serving: individuals who, on the Commencement Date,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election contest,
including but not limited to a consent solicitation, relating or the election of
directors of the Company) whose appointment or election by the Board or nomination
for election by the Company’s stockholders was approved or recommended by a vote of
at least two-thirds (2/3rds) of the directors then still in office who either were
directors on the Commencement Date or whose appointment, election or nomination for
election was previously so approved or recommended (the “Incumbent Board”);

(C) there is a consummated merger or consolidation of the Company with any other
corporation, other than (1) a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving or parent entity) more than fifty percent (50%) of the
combined voting power of the voting securities of the Company or such surviving or
parent entity outstanding immediately after such merger or consolidation or (2) a
merger or consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no Person, directly or indirectly, acquired
twenty-five percent (25%) or more of the combined voting power of the Company’s then
outstanding securities; or

(D) the stockholders of the Company approve a plan of complete liquidation of the
Company or there is consummated an agreement for the sale or disposition by the
Company of all or substantially all of the Company’s assets (or any transaction
having a similar effect), other than a sale or disposition by the Company of all or
substantially all of the Company’s assets to an entity, at least fifty percent (50%)
of the combined voting power of the voting securities of which are owned by
stockholders of the Company in substantially the same proportions as their ownership
of the Company immediately prior to such sale.

	 	(ii)	 	For purposes of this Section 7, “Beneficial Owner” shall have the meaning set
forth in Rule 13d-3 under the Exchange Act;

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	 	(iii)	 	For purposes of this Agreement, “Change in Control Period” means the period
commencing on the date occurring six months immediately prior to the date on which a
Change in Control occurs and ending on the second anniversary of the date on which a
Change in Control occurs.
	 
	 	(iv)	 	For purposes of this Agreement, “Exchange Act’ means the Securities and
Exchange Act of 1934, as amended from time to time;
	 
	 	(v)	 	For purposes of this Section 7, “Person” shall have the meaning set forth in
Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (1) the Company, (2) a trustee or
other fiduciary holding securities under an employee benefit plan of the Company, (3)
an employee benefit plan of the Company, (4) an underwriter temporarily holding
securities pursuant to an offering of such securities or (5) a corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of shares of Common Stock of the Company.
	 
	 	(vi)	 	For purposes of this Agreement, “Release” means that specific document which
the Company shall present to Executive for consideration and execution after any
termination of employment pursuant to Section 5(e), Section 6(e), or this Section 7,
wherein if he agrees to such, he will irrevocably and unconditionally release and
forever discharge the Company, it subsidiaries, affiliates and related parties from any
and all causes of action which Executive at that time had or may have had against the
Company (excluding any claim for indemnity under this Agreement, any claim under state
workers’ compensation or unemployment laws, or any claim under COBRA).

     8. No Other Benefits or Compensation. Except as may be provided under this Agreement, or
under the terms of any incentive compensation, employee benefit, or fringe benefit plan applicable
to Executive at the time of Executive’s termination or resignation, Executive shall have no right
to receive any other compensation, or to participate in any other plan, arrangement or benefit,
with respect to future periods after such termination or resignation.

     9. No Mitigation; No Set-Off. In the event of any termination of employment hereunder,
Executive shall be under no obligation to seek other employment, and, except as otherwise provided
in section 6(e)(iv), there shall be no offset against any amounts due Executive under this
Agreement on account of any remuneration attributable to any subsequent employment that Executive
may obtain. The amounts payable hereunder shall not be subject to setoff, counterclaim,
recoupment, defense or other right that the Company may have against Executive or others, except
upon obtaining by the Company of a final non-appealable judgment against Executive.

     10. Covenants

     (a.) Company Property. All written materials, records, data, and other documents prepared or
possessed by Executive during Executive’s employment with the Company are the

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Company’s property. All information, ideas, concepts, improvements, discoveries, and
inventions that are conceived, made, developed, or acquired by Executive individually or in
conjunction with others during Executive’s employment (whether during business hours and whether on
the Company’s premises or otherwise) which relate to the Company’s business, products, or services
are the Company’s sole and exclusive property. All memoranda, notes, records, files,
correspondence, drawings, manuals, models, specifications, computer programs, maps, and all other
documents, data, or materials of any type embodying such information, ideas, concepts,
improvements, discoveries, and inventions are the Company’s property. At the termination of
Executive’s employment with the Company for any reason, Executive shall return all of the Company’s
documents, data, or other Company property to the Company.

     (b) Confidential Information; Non-Disclosure. Executive acknowledges that the business of the
Company is highly competitive and that the Company has agreed to provide Executive with access to
“Confidential Information” relating to the business of the Company and its affiliates.

     For purposes of this Agreement, “Confidential Information” means and includes the Company’s
confidential and/or proprietary information and/or trade secrets that have been developed or used
and/or will be developed and that cannot be obtained readily by third parties from outside sources.
Confidential Information includes, by way of example and without limitation, the following
information regarding customers, employees, contractors, and the industry not generally known to
the public; strategies, methods, books, records, and documents; technical information concerning
products, equipment, services, and processes; procurement procedures and pricing techniques; the
names of and other information concerning customers, investors, and business affiliates (such as
contact name, service provided, pricing for that customer, type and amount of services used,
credit and financial data, and/or other information relating to the Company’s relationship with
that customer); pricing strategies and price curves; positions, plans, and strategies for expansion
or acquisitions; budgets; customer lists; research; weather data; financial and sales data; trading
methodologies and terms; evaluations, opinions, and interpretations of information and data;
marketing and merchandising techniques; prospective customers’ names and marks; grids and maps;
electronic databases; models; specifications; computer programs; internal business records;
contracts benefiting or obligating the Company; bids or proposals submitted to any third party;
technologies and methods; training methods and training processes; organizational structure;
personnel information, including salaries of personnel; payment amounts or rates paid to
consultants or other service providers; and other such confidential or proprietary information.
Information need not qualify as a trade secret to be protected as Confidential Information under
this Agreement, and the authorized and controlled disclosure of Confidential Information to
authorized parties by Company in the pursuit of its business will not cause the information to lose
its protected status under this Agreement. Executive acknowledges that this Confidential
Information constitutes a valuable, special, and unique asset used by the Company or its affiliates
in their businesses to obtain a competitive advantage over their competitors. Executive further
acknowledges that protection of such Confidential Information against unauthorized disclosure and
use is of critical importance to the Company and its affiliates in maintaining their competitive
position.

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     Executive will also have access to, or knowledge of, Confidential Information of third
parties, such as actual and potential customers, suppliers, partners, joint venturers, investors,
financing sources, and the like, of the Company and its affiliates.

     The Company also agrees to provide Executive with one or more of the following: a portion of
the Company’s Confidential Information; specialized training regarding the Company’s methodologies
and business strategies, and/or support in the development of goodwill such as introductions,
information and reimbursement of customer development expenses consistent with Company policy. The
foregoing is contingent upon Executive’s use of the Confidential Information access, specialized
training, and goodwill support provided by Company for the exclusive benefit of the Company and
upon Executive’s full compliance with the restrictions on Executive’s conduct provided for in this
Agreement.

     In addition to the requirements set forth in Section 5(c)(i), Executive agrees that Executive
will not after Executive’s employment with the Company, make any unauthorized disclosure of any
then Confidential Information or specialized training of the Company or its affiliates, or make any
use thereof, except in the carrying out of his employment responsibilities hereunder. Executive
also agrees to preserve and protect the confidentiality of third party Confidential Information to
the same extent, and on the same basis, as the Company’s Confidential Information.

     (c) Unfair Competition Restrictions. Ancillary to the rights provided to Executive following
employment termination, the Company’s provision of Confidential Information, specialized training,
and/or goodwill support to Executive, and Executive’s agreements, regarding the use of same, and in
order to protect the value of the above-referenced restricted stock, equity-based incentive awards,
training, goodwill support and/or the Confidential Information described above, the Company and
Executive agree to the following provisions against unfair competition. Executive agrees that for
a period of two (2) years following the termination of employment for any reason (“Restricted
Term”), Executive will not, directly or indirectly, for Executive or for others, anywhere in the
United States (including all parishes in Louisiana, and Puerto Rico) (the “Restricted Area”) do the
following, unless expressly authorized to do so in writing by the Chief Executive Officer of the
Company:

Engage in, or assist any person, entity, or business engaged in, the
selling or providing of products or services that would displace the
products or services that (i) the Company is currently in the
business of providing and was in the business of providing, or was
planning to be in the business of providing, at the time Executive
was employed with the Company, and (ii) that Executive had
involvement in or received Confidential Information about in the
course of employment; the foregoing is expressly understood to
include, without limitation, the business of the collection,
transfer, recycling and resource recovery, or disposal of solid
waste, hazardous or other waste, including the operation of
waste-to-energy facilities.

12

 

     It is further agreed that during the Restricted Term, Executive cannot engage in any of the
enumerated prohibited activities in the Restricted Area by means of telephone, telecommunications,
satellite communications, correspondence, or other contact from outside the Restricted Area.
Executive further understands that the foregoing restrictions may limit his ability to engage in
certain businesses during the Restricted Term, but acknowledges that these restrictions are
necessary to protect the Confidential Information the Company has provided to Executive.

     A failure to comply with the foregoing restrictions will create a presumption that Executive
is engaging in unfair competition. Executive agrees that this Section defining unfair competition
with the Company does not prevent Executive from using and offering the skills that Executive
possessed prior to receiving access to Confidential Information, confidential training, and
knowledge from the Company. This Agreement creates an advance approval process, and nothing
herein is intended, or will be construed as, a general restriction against the pursuit of lawful
employment in violation of any controlling state or federal laws. Executive shall be permitted to
engage in activities that would otherwise be prohibited by this covenant if such activities are
determined in the sole discretion of the Chief Executive Officer of the Company in writing to be no
material threat to the legitimate business interests of the Company.

     (d) Non-Solicitation of Customers. For a period of two (2) years following the termination of
employment for any reason, Executive will not call on, service, or solicit competing business from
customers of the Company or its affiliates whom Executive, within the previous twelve (12) months,
(i) had or made contact with, or (ii) had access to information and files about, or induce or
encourage any such customer or other source of ongoing business to stop doing business with
Company.

     (e) Non-Solicitation of Employees. During Executive’s employment, and for a period of two (2)
years following the termination of employment for any reason, Executive will not, either directly
or indirectly, call on, solicit, encourage, or induce any other employee or officer of the Company
or its affiliates whom Executive had contact with, knowledge of, or association within the course
of employment with the Company to terminate his employment, and will not assist any other person or
entity in such a solicitation.

     (f) Non-Disparagement. Executive covenants and agrees that Executive shall not engage in any
pattern of conduct that involves the making or publishing of written or oral statements or remarks
(including, without limitation, the repetition or distribution of derogatory rumors, allegations,
negative reports or comments) which are disparaging, deleterious or damaging to the integrity,
reputation or good will of the Company, its management, or of management of corporations affiliated
with the Company.

     11. Enforcement of Covenants.

     (a) Termination of Employment and Forfeiture of Compensation. Executive agrees that any
breach by Executive of any of the covenants set forth in Section 10 hereof during Executive’s
employment by the Company, shall be grounds for immediate dismissal of

13

 

Executive for Cause pursuant to Section 5(c)(i), which shall be in addition to and not
exclusive of any and all other rights and remedies the Company may have against Executive.

     (b) Right to Injunction. Executive acknowledges that a breach of the covenants set forth in
Section 10 hereof will cause irreparable damage to the Company with respect to which the Company’s
remedy at law for damages will be inadequate. Therefore, in the event of breach or anticipatory
breach of the covenants set forth in this section by Executive, Executive and the Company agree
that the Company shall be entitled to seek the following particular forms of relief, in addition to
remedies otherwise available to it at law or equity: (A) injunctions, both preliminary and
permanent, enjoining or restraining such breach or anticipatory breach and Executive hereby
consents to the issuance thereof forthwith and without bond by any court of competent jurisdiction;
and (B) recovery of all reasonable sums as determined by a court of competent jurisdiction expended
and costs, including reasonable attorney’s fees, incurred by the Company to enforce the covenants
set forth in this section.

     (c) Separability of Covenants. The covenants contained in Section 10 hereof constitute a
series of separate but ancillary covenants, one for each applicable State in the United States and
the District of Columbia, and one for each applicable foreign country. If in any judicial
proceeding, a court shall hold that any of the covenants set forth in Section 10 exceed the time,
geographic, or occupational limitations permitted by applicable laws, Executive and the Company
agree that such provisions shall and are hereby reformed to the maximum time, geographic, or
occupational limitations permitted by such laws. Further, in the event a court shall hold
unenforceable any of the separate covenants deemed included herein, then such unenforceable
covenant or covenants shall be deemed eliminated from the provisions of this Agreement for the
purpose of such proceeding to the extent necessary to permit the remaining separate covenants to be
enforced in such proceeding. Executive and the Company further agree that the covenants in Section
10 shall each be construed as a separate agreement independent of any other provisions of this
Agreement, and the existence of any claim or cause of action by Executive against the Company
whether predicated on this Agreement or otherwise, shall not constitute a defense to the
enforcement by the Company of any of the covenants of Section 10.

     12. Indemnification.

     The Company shall indemnify and hold harmless Executive to the fullest extent permitted by
Delaware law for any action or inaction of Executive while serving as an officer and director of
the Company or, at the Company’s request, as an officer or director of any other entity or as a
fiduciary of any benefit plan. This provision includes the obligation and undertaking of Executive
to reimburse the Company for any fees advanced by the Company on behalf of Executive should it
later be determined that Executive was not entitled to have such fees advanced by the Company under
Delaware law. The Company shall cover Executive under directors and officers liability insurance
both during and, while potential liability exists, after the Employment Period in the same amount
and to the same extent as the Company covers its other officers and directors.

14

 

     13. Arbitration.

     Except with respect to enforcement of the covenants contained in Section 11 herein, the
parties agree that any dispute relating to this Agreement, or to the breach of this Agreement,
arising between Executive and the Company shall be settled by arbitration in accordance with the
Federal Arbitration Act and the commercial arbitration rules of the American Arbitration
Association (“AAA”), or any other mutually agreed upon arbitration service. The arbitration
proceeding, including the rendering of an award, shall take place in Houston, Texas, and shall be
administered by the AAA (or any other mutually agreed upon arbitration service). The arbitrator
shall be jointly selected by the Company and Executive within thirty (30) days of the notice of
dispute, or if the parties cannot agree, in accordance with the commercial arbitration rules of the
AAA (or any other mutually agreed upon arbitration service). All fees and expenses associated with
the arbitration shall be borne equally by Executive and the Company during the arbitration, pending
final decision by the arbitrator as to who should bear fees, unless otherwise ordered by the
arbitrator. The arbitrator shall not be authorized to create a cause of action or remedy not
recognized by applicable state or federal law. The award of the arbitrator shall be final and
binding upon the parties without appeal or review, except as permitted by the arbitration laws of
the State of Texas. The award shall be enforceable through a court of law upon motion of either
party.

     14. Requirement of Timely Payments.

     If any amounts which are required, or determined to be paid or payable, or reimbursed or
reimbursable, to Executive under this Agreement are not so paid promptly at the times provided
herein, such amounts shall accrue interest, compounded daily, at an 8% annual percentage rate, from
the date such amounts were required or determined to have been paid or payable, reimbursed or
reimbursable to Executive, until such amounts and any interest accrued thereon are finally and
fully paid, provided, however, that in no event shall the amount of interest contracted for,
charged or received hereunder, exceed the maximum non-usurious amount of interest allowed by
applicable law.

     15. Withholding of Taxes.

     The Company may withhold from any compensation and benefits payable under this Agreement all
applicable federal, state, local, or other taxes.

     16. Source of Payments.

     All payments provided under this Agreement, other than payments made pursuant to a plan which
provides otherwise, shall be paid from the general funds of the Company, and no special or separate
fund shall be established, and no other segregation of assets made, to assure payment. Executive
shall have no right, title or interest whatever in or to any investments which the Company may make
to aid the Company in meeting its obligations hereunder. To the extent that any person acquires a
right to receive payments from the Company hereunder, such right shall be no greater than the right
of an unsecured creditor of the Company.

15

 

     17. Assignment.

     Except as otherwise provided in this Agreement, this Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective heirs, representatives, successors and
assigns. This Agreement shall not be assignable by Executive (but any payments due hereunder which
would be payable at a time after Executive’s death shall be paid to Executive’s designated
beneficiary or, if none, his estate) and shall be assignable by the Company only to any financially
solvent corporation or other entity resulting from the reorganization, merger or consolidation of
the Company with any other corporation or entity or any corporation or entity to or with which the
Company’s business or substantially all of its business or assets may be sold, exchanged or
transferred, and it must be so assigned by the Company to, and accepted as binding upon it by, such
other corporation or entity in connection with any such reorganization, merger, consolidation,
sale, exchange or transfer in a writing delivered to Executive in a form reasonably acceptable to
Executive (the provisions of this sentence also being applicable to any successive such
transaction).

     18. Entire Agreement; Amendment.

     This Agreement shall supersede any and all existing oral or written agreements,
representations, or warranties between Executive and the Company or any of its subsidiaries or
affiliated entities relating to the terms of Executive’s employment by the Company. It may not be
amended except by a written agreement signed by both parties.

     19. Governing Law.

     This Agreement shall be governed by and construed in accordance with the laws of the State of
Texas applicable to agreements made and to be performed in that State, without regard to its
conflict of laws provisions.

     20. Notices.

     Any notice, consent, request or other communication made or given in connection with this
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed
by registered or certified mail, return receipt requested, or by facsimile or by hand delivery, to
those listed below at their following respective addresses or at such other address as each may
specify by notice to the others:

	 	 	 
	To the Company:

	 	Waste Management, Inc.

1001 Fannin, Suite 4000

Houston, Texas 77002

Attention: Corporate Secretary
	 
	 	 
	To Executive:

	 	At the address for Executive set forth below.

16

 

     22. Miscellaneous.

     (a) Waiver. The failure of a party to insist upon strict adherence to any term of this
Agreement on any occasion shall not be considered a waiver thereof or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

     (b) Separability. Subject to Section 11 hereof, if any term or provision of this Agreement is
declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to
be enforceable, such term or provision shall immediately become null and void, leaving the
remainder of this Agreement in full force and effect.

     (c) Headings. Section headings are used herein for convenience of reference only and shall
not affect the meaning of any provision of this Agreement.

     (d) Rules of Construction. Whenever the context so requires, the use of the singular shall be
deemed to include the plural and vice versa.

     (e) Counterparts. This Agreement may be executed in any number of counterparts, each of which
so executed shall be deemed to be an original, and such counterparts will together constitute but
one Agreement.

     23. Potential Limitation on Severance Benefits.

     (a) Potential Reduction Due to Application of Maximum Severance Amount Policy.
Notwithstanding any provision in this Agreement to the contrary, in the event of a termination of
Executive’s employment it is determined by the Company that the Severance Benefits (as defined
below) owed to executive would exceed 2.99 times the sum of Executive’s then current base salary
and target bonus (the “Maximum Severance Amount”), then the Severance Benefits provided to
Executive shall be reduced to the Maximum Severance Amount. For purposes of this Section 23(a) ,
the term “Severance Benefits” means the aggregate present value of payments or distributions
payable to Executive by the Company, its subsidiaries or affiliated entities as a result of the
termination of employment (whether paid or provided pursuant to the terms of this Agreement or
otherwise), including: (i) cash amounts payable by the Company in the event of termination of
Executive’s employment; and (ii) the value of benefits or perquisites provided for periods after
termination of employment (but excluding benefits or perquisites provided to employees generally).
For purposes of this Section 23, however, the following will not be considered Severance Benefits:
(i) payments of salary, bonus or performance award amounts that had accrued through the date of
termination; (ii) payments based on accrued qualified and non-qualified deferred compensation
plans, including retirement and savings benefits; (iii) any benefits or perquisites provided under
plans or programs applicable to employees generally; (iv) amounts paid as part of any agreement
intended to “make-whole” any forfeiture of benefits from a prior employer; (v) amounts paid for
services following termination of employment for a reasonable consulting agreement for a period not
to exceed one year; (vi) amounts paid for post-termination covenants; (vii) the value of
accelerated vesting or payment of any outstanding equity-based award; and (viii) any payment that
the Board or any committee thereof determines in good faith to be a reasonable settlement of any
claim made against the Company.

17

 

     (b) Potential Reduction Due to Excise Taxation. Following application of Section 23(a),
including any resulting reduction in benefits, in the event that any payments from the Company to
Executive (including any payment or benefit received in connection with a Change in Control or the
termination of Executive’s employment) would be subject (in whole or part) to any excise tax
imposed under section 4999 of the Code (the “Excise Tax”), then the cash portion of the severance
payments shall first be further reduced, and the non-cash severance payments shall thereafter be
further reduced, to the extent necessary so that no portion of any payments from the Company to
Executive is subject to the Excise Tax, but only if (i) the net amount of the severance payments to
be received by Executive, as so reduced by this Section 23(b) (and after subtracting the net amount
of federal, state and local income taxes on such additionally reduced severance payments and after
taking into account the phase out of itemized deductions and personal exemptions attributable to
such additionally reduced severance payments) is greater than or equal to (ii) the net amount of
the severance payments to be received by Executive without such additional reduction (but after
subtracting the net amount of federal, state and local income taxes on such severance payments and
the amount of Excise Tax to which Executive would be subject in respect of such unreduced severance
payments and after taking into account the phase out of itemized deductions and personal exemptions
attributable to such unreduced severance payments); provided, however, that Executive may elect to
have the non-cash portion of the severance payments reduced (or eliminated) prior to any reduction
of the cash portion of the severance payments.

     (c) Calculation of Excise Tax. For purposes of determining whether and the extent to which
portions of the payments owed to Executive will be subject to the Excise Tax, (i) no portion of the
severance payments the receipt or enjoyment of which Executive shall have waived at such time and
in such manner as not to constitute a “payment” within the meaning of section 280G(b) of the Code
shall be taken into account, (ii) no portion of the severance payments shall be taken into account
which, in the opinion of tax counsel (“Tax Counsel”) who is reasonably acceptable to Executive and
selected by the accounting firm (the “Auditor”) which was, immediately prior to the Change in
Control, the Company’s independent auditor, does not constitute a “parachute payment” within the
meaning of section 280G(b)(2) of the Code (including by reason of section 280G(b)(4)(A) of the
Code) and, in calculating the Excise Tax, no portion of such severance payments shall be taken into
account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services
actually rendered, within the meaning of section 280G(b)(4)(B) of the Code, in excess of the “base
amount” (as defined in section 280G(b)(3) of the Code) allocable to such reasonable compensation,
and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the
severance payments shall be determined by the Auditor in accordance with the principles of sections
280G(d)(3) and (4) of the Code.

     (d) Determination of Present Value. For purposes of this Section 23, the present value shall
be determined in accordance with section 280G(d)(4) of the Code.

18

 

     24. Code Section 409A.

     It is the intention of the Company and Executive that this Agreement not result in an
unfavorable tax consequences to Executive under Section 409A of the Code (“Section 409A”).
Executive hereby consents to any amendment of this Agreement as the Company may reasonably make in
furtherance of such intention, and the Company shall promptly provide, or make available to,
Executive a copy of such amendment. Moreover, notwithstanding anything in this Agreement to the
contrary, if Executive is deemed to be a “specified employee” for purposes of Section 409A, no
severance payment or other payments pursuant to, or contemplated by, this Agreement or otherwise
that would reasonably be expected to result in excise taxes under Section 409A shall be
distributable to Executive from the Company until the amount of time has elapsed that is necessary
to avoid Executive incurring any excise taxes under Section 409A. Should application of the
preceding sentence result in a delay of payments to Executive, on the first day any such payments
may be made without Executive incurring a excise tax pursuant to Section 409A (the “409A Payment
Date”), the Company shall begin to make such payments as described in this Agreement, provided that
any amounts that would have been payable earlier but for the application of this Section 24, shall
be paid in a lump-sum on the 409A Payment Date. If any severance or post-employment payment made
to Executive is subject to any such excise or other tax, then payment of such tax is solely the
responsibility of Executive, and not the Company.

19

 

     IN WITNESS WHEREOF, this Agreement is executed on the date first set forth above and is
effective as of the Employment Date.

	 	 	 	 	 
	 	MICHAEL JAY ROMANS

(“Executive”)

 	 
	 	/s/ Michael Jay Romans
 
	 	Michael Jay Romans 	 
	 	 	 
	 	 
	 (Address)
	 	 
 

	 	 	 
	 	 	 
	 	WASTE MANAGEMENT, INC.

(The “Company”)

 	 
	 	By:  	/s/ David P. Steiner
 
	 	 	David P. Steiner 	 
	 	 	Chief Executive Officerexv4w1

 

Exhibit 4.1

	AUTHORIZED COMMON: 100,000,000 SHARES

	STOCK CERTIFICATE
CUSIP: [INSERT CUSIP NUMBER HERE]

	CUSIP NO. 871628 10 3

	SYNTHESIS ENERGY SYSTEMS, INC.

	THIS CERTIFIES THAT
IS THE RECORD HOLDER OF

	m Shares of SYNTHESIS ENERGY SYSTEMS, INC . Common Stock r
transferable on the books of the Corporation in person or by duly authorized attorney upon surrender of this Certificate
properly endorsed . This Certificate is not valid until countersigned by the Transfer Agent and registered by the Registrar .
Witness the facsimile seal of the Corporation and the facsimile signatures of its duly authorized officers .

	Dated :

 

 

			
	NOTICE:	 	Signature must be guaranteed by a firm which is a member of a registered national
stock exchange, or by a bank (other than a savings bank), or a trust company. The following
abbreviations, when used in the inscription on the face of this certificate, shall be construed as
though they were written out in full according to applicable laws or regulations.

	 	 	 	 	 
	 

	 	TEN COM — as tenants in common
	 	UNIF GIFT MIN ACT — Custodian
	 

	 	TEN ENT—as tenants by the entireties
	 	(Cust)       (Minor)   
	 

	 	JT TEN — as joint tenants with right of
survivorship and not as tenants in
common
	 	under Uniform Gifts to Minors   

Act                                           
	 

	 	 	 	(States)          
	 
	 	 	 	 
	 	 	Additional abbreviations may also be used though not in the above list.

For Value Received,                      hereby sell, assign and transfer unto

	 	 	 	 	 
	 	 	 	PLEASE INSERT SOCIAL SECURITY OR OTHER	 
	 	 	 	IDENTIFYING NUMBER OF ASSIGNEE	 
	 

	 	 	 	 
	 

	 	 	 	 

 

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OR ASSIGNEE)

 

 

 

                                                                     
            Shares of the capital stock represented by the within certificate, and do hereby irrevocably constitute
and appoint

 

                                                                     
           
Attorney to transfer the said stock on the books of the within named Corporation with
full power of substitution in the premises.

Dated                                                             

 

	 	 	 
	 
	NOTICE:

	 	THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF
THE CERTIFICATE IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

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