Document:

exv10w3

 

EXHIBIT 10.3

EXECUTIVE EMPLOYMENT AGREEMENT

          ALLIED WASTE INDUSTRIES, INC., a Delaware corporation (“Company”) and PETER S. HATHAWAY
(“Executive”) enter into this amended and restated Executive Employment Agreement (“Agreement”) to
set forth the terms and conditions of Executive’s employment. This Agreement supersedes any prior
employment agreement(s) between the parties. The parties agree as follows:

          1. Certain Definitions and Understandings. As used in this Agreement, the following terms have
the meanings prescribed below:

               Annual Incentive Compensation is defined in Section 4.2.

               Base Salary is defined in Section 4.1.

               Beneficial Owner is defined in Rule 13(d)-3 under the Exchange Act; provided, however, and
without limitation, that any individual, corporation, partnership, group, association or other
person or entity that has the right to acquire any Voting Stock at any time in the future, whether
such right is (a) contingent or absolute, or (b) exercisable presently or at any time in the
future, pursuant to any agreement or understanding or upon the exercise or conversion of rights,
options or warrants, or otherwise, shall be the Beneficial Owner of such Voting Stock.

               Board of Directors (or Board) means the Company’s Board of Directors.

               Cash Termination Excise Tax is defined in Section 6.6(a).

               Cause is defined in Section 5.3.

               Change in Control of the Company means one of the following: (a) the Company merges or
consolidates, or agrees to merge or to consolidate, with any other corporation (other than a
wholly-owned direct or indirect subsidiary of the Company) and is not the surviving corporation (or
survives as a subsidiary of another corporation), (b) the Company sells, or agrees to sell, all or
substantially all of its assets to any other person or entity, (c) the Company is dissolved, (d)
any third person or entity (other than Apollo Advisors, L.P., The Blackstone Group L.P., or a
trustee or committee of any qualified employee benefit plan of the Company) together with its
Affiliates shall become (by tender offer or otherwise), directly or indirectly, the Beneficial
Owner of at least 30% of the Voting Stock of the Company, or (e) the individuals who constitute the
Board of Directors of the Company as of the Initial Effective Date (“Incumbent Board”) shall cease
for any reason to constitute at least a majority of the Board of Directors; provided, that any
person becoming a director whose election or nomination for election was approved by a majority of
the members of the Incumbent Board shall be considered, for the purposes of this Agreement, a
member of the Incumbent Board.

               Change in Control Date is defined in Section 6.5.

               Change in Control Payment is defined in Section 6.6(a).

 

 

               Code means the Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated by the Internal Revenue Service thereunder.

               Common Stock means the Company’s common stock, par value $.01 per share.

               Company means Allied Waste Industries, Inc., a Delaware corporation.

               Compensation Plans is defined in Section 4.6.

               Confidential Information is defined in Section 7.2.

               Continuing Obligations is defined in Article 3.

               Date of Termination means the earliest to occur of (a) the date of the Executive’s death, or
(b) the date specified in the Notice of Termination, in accordance with Section 5.8.

               Disability means an illness or other disability which prevents the Executive from discharging
the essential functions of his responsibilities under this Agreement, with or without a reasonable
accommodation, for a period of 180 consecutive calendar days, or an aggregate of 180 calendar days
in any calendar year, during the Term, all as determined in good faith by the Board of Directors
(or a committee thereof).

               Effective Date means the effective date of this amended and restated Executive Employment
Agreement, which is January 1, 2005, except as may otherwise be provided herein.

               Exchange Act means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the Securities and Exchange Commission thereunder.

               Executive means Peter S. Hathaway (or, as applicable, his heirs).

               Good Reason is defined in Section 5.5.

               Gross-Up Payment is defined in Section 6.6(c).

               Initial Effective Date means January 1, 2004.

               LTIP means the Company’s Long-Term Incentive Plan.

               Notice of Termination is defined in Section 5.8.

               Paid Leave is defined in Section 4.3.

               Retirement is defined in Section 5.7.

               Safe Harbor Amount is defined in Section 6.6(a).

2

 

               Share Price has the same meaning as “Fair Market Value” as that term is defined in the
Company’s 1991 Incentive Stock Plan, as amended.

               Targeted Annual Incentive Compensation is defined in Section 4.2.

               Term is defined in Article 3.

               Threshold Share Price means (a) in the case of the calendar year beginning January 1, 2007, a
Share Price of $16 or more, or (b) in the case of subsequent calendar years, a Share Price which is
at least fifteen percent (15%) greater than the Threshold Share Price for the preceding calendar
year, provided that the annual increase is subject to review and adjustment as determined to be
appropriate by the Management Development/Compensation Committee of the Board of Directors.

               Unrestricted Payments means those payments to which the Executive is entitled under Sections
6.2(a)(1), 6.3(a)(1), 6.4(a), and 6.5(a)(1) of this Agreement.

               Voting Stock means all outstanding shares of capital stock of the Company entitled to vote
generally in an election of directors; provided, however, that if the Company has shares of Voting
Stock entitled to more or less than one (1) vote per share, each reference to a proportion of the
issued and outstanding shares of Voting Stock shall be deemed to refer to the proportion of the
aggregate votes entitled to be cast by the issued and outstanding shares of Voting Stock.

               Welfare Plans is defined in Section 4.7.

               Without Cause is defined in Section 5.4.

               In addition, throughout this Agreement, the parties have defined certain words and intend for
those definitions to apply whenever the parties have used a defined word in this Agreement. One of
the defined terms is “Company” which means Allied Waste Industries, Inc. However, the parties
expect that some or all of the Company’s obligations under this Agreement will be fulfilled through
its parent, subsidiary, related, or successor companies or businesses (which will be called
“Affiliates” in this Agreement). Accordingly, Executive acknowledges that the discharge of any
obligation of the Company under this Agreement, which may be through the acts of one or more
Affiliates, discharges any such obligation of the Company. Moreover, the obligations Executive
assumes under this Agreement will be owed to the Company and to its Affiliates. Accordingly, the
parties expressly intend for the Affiliates to be third-party beneficiaries of the promises made
and obligations assumed by Executive in this Agreement.

          2. General Duties of Company and Executive.

               2.1. The Company will employ the Executive as its Executive Vice President and Chief Financial
Officer. The Executive’s authority, duties and responsibilities shall be those assigned by the
Company’s Chief Executive Officer and/or Board of Directors (or a committee thereof) and agreed to
by the Executive. The Executive shall devote reasonable time and attention during normal business
hours to the affairs of the Company and use his best efforts to perform faithfully and efficiently
his duties and responsibilities. The Executive may (a) serve on corporate,

3

 

civic or charitable
boards or committees, (b) deliver lectures, fulfill speaking engagements or teach at educational
institutions, and (c) manage personal investments, so long as such activities do not significantly
interfere with the performance of the Executive’s duties and responsibilities.

               2.2. The Executive agrees and acknowledges that he owes a fiduciary duty of loyalty, fidelity
and allegiance to act at all times in the best interests of the Company and to do no act and to
make no statement, oral or written, which would injure the Company’s business, its interests or its
reputation, except as may be required by applicable law or regulation. The Executive also agrees
that he shall not knowingly become involved in a conflict of interest with the Company and, upon
discovery of any such conflict, that he will inform the Company of the conflict and will not allow
the conflict to continue.

               2.3. The Executive agrees to comply at all times with all applicable policies, rules and
regulations of the Company, including, but not limited to, the Company’s Code of Ethics and the
Company’s policies regarding trading in Common Stock, stock ownership and retention guidelines, and
reimbursement of expenses, as each is in effect from time to time.

          3. Term. The initial “Term” of this Agreement shall be a period of two (2) years, beginning on
the Initial Effective Date and ending on the second anniversary of the Initial Effective Date, and
thereafter this Agreement shall automatically renew for successive one (1) year Terms.
Notwithstanding the foregoing, either party may terminate this Agreement pursuant to Article 5 of
this Agreement, in which case the Term shall end on the Date of Termination specified in the Notice
of Termination (or on the Executive’s date of death if termination is due to the Executive’s
death). Neither the termination of this Agreement nor the consequent end of the Term shall affect
the Company’s obligations under Article 6 of this Agreement or the Executive’s obligations under
Articles 7 through 10 of this Agreement (or under Section 2.3 with respect to the Company’s
policies regarding trading in Common Stock) (collectively, “Continuing Obligations”).

          4. Compensation and Benefits.

               4.1. Base Salary. As compensation for services to the Company during the Term, the Company
shall pay to the Executive until the Date of Termination a base salary at the annual rate of Six
Hundred Fifteen Thousand Dollars ($615,000.00), as of March 1, 2007, or such higher rate as may be
determined from time to time in the discretion of the Board of Directors (or a committee thereof)
(“Base Salary”). Base Salary shall be payable in equal bi-weekly installments or in accordance with
the Company’s established policy, subject only to such payroll and withholding deductions as may be
required by law and other deductions that are either applied generally to employees of the Company
for insurance and other employee benefit plans or which are authorized by the Executive. For all
purposes under this Agreement, the Executive’s Base Salary shall include any portion thereof which
is deferred under any nonqualified plan or arrangement.

               4.2. Annual Incentive Compensation. In addition to Base Salary, the Executive shall be
eligible to be awarded, for each fiscal year during the Term until the Date of Termination, annual
cash incentive compensation (either pursuant to an incentive plan or program of the Company or
otherwise) (“Annual Incentive Compensation”) in an amount to be determined by the Board of
Directors (or a committee thereof) in its sole discretion and specified as a percentage of

4

 

the
Executive’s Base Salary (“Targeted Annual Incentive Compensation”). The Executive’s actual Annual
Incentive Compensation may range from zero percent (0%) to the maximum percentage of the
Executive’s Base Salary permitted by the terms of the Company’s annual incentive compensation
plan(s), as amended from time to time. All such Annual Incentive Compensation shall be payable at a
time to be determined by the Board of Directors (or a committee thereof) in its sole discretion.
For all purposes under this Agreement, the Executive’s Annual Incentive Compensation shall include
any portion thereof which is deferred under any nonqualified plan or arrangement.

               4.3. Paid Leave. Commencing on the Initial Effective Date and continuing until the Date of
Termination, for each full calendar year in which the Executive is employed under this Agreement,
the Executive shall be entitled to twenty (20) days’ paid leave (“Paid Leave”) during the year
without any reduction in the Compensation to which he is entitled under this Article 4. For any
partial calendar year during which the Executive is employed under this Agreement, he will be
entitled to a prorated amount of this Paid Leave, based on the number of weeks worked in the
calendar year and pursuant to the Company’s then current paid leave policy. Because the Company
intends for this Paid Leave to be used by the Executive, so that he benefits from having time away
from his customary employment duties, the Executive must use the Paid Leave provided under this
Section 4.3, for each calendar year, during the relevant calendar year for which it is provided. If
the Executive does not use all of the Paid Leave to which he is entitled in any calendar year, he
will forfeit this benefit at the end of that calendar year and shall have no right to take more
than twenty (20) days of Paid Leave in the following or any subsequent calendar year or to be
otherwise compensated for not having utilized the Paid Leave.

               4.4. Automobile Allowance. Commencing on the Initial Effective Date and continuing until the
Date of Termination, the Executive shall receive an automobile allowance of Six Hundred Dollars
($600.00) per month (“Automobile Allowance”). The Board of Directors (or a committee thereof), in
its discretion, may increase the Automobile Allowance based upon relevant circumstances.

               4.5.
Club Membership Dues. Commencing on the Initial Effective Date and continuing until the
Date of Termination, the Executive shall receive an allowance for monthly membership dues (i.e.,
the regular membership fee, and not incidental or ancillary charges such as food, beverages,
rentals, coaching, training, supplies, therapy, spa, etc.) for a club or organization of
Executive’s choice in the amount of Six Hundred Dollars ($600.00) per month (“Club Allowance”). The
Executive will not be entitled to this Club Allowance if the Company determines that membership in
the relevant club or organization would violate the letter or spirit of any Company policy.

               4.6. Incentive, Savings, Retirement and Stock Plans. The Executive shall be entitled to
participate in and be eligible to receive benefits under all executive incentive, savings,
retirement, deferral, and stock (including any stock option, restricted stock, restricted stock
units, phantom stock and other stock rights and interests, including derivative interests) plans
and programs currently maintained or hereinafter established by the Company for the benefit of its
similarly-situated executive officers (collectively “Compensation Plans”). The Executive’s
participation in the Compensation Plans shall be governed by the terms and conditions of those
plans. Subject to the terms of the Company’s stock ownership and retention guidelines, as adopted

5

 

and/or amended by the Board of Directors (or a committee thereof) from time to time, the Executive
is expected to retain fifty percent (50%) of the shares received upon the exercise of any options
or the vesting of any restricted stock (after netting such shares for the purpose of satisfying the
Executive’s income and payroll tax obligations incurred as the result of any exercise or vesting
event), until such time as he has accumulated stock with a value of at least two and one-half (2.5)
times the Executive’s Base Salary. For purposes of the preceding sentence, “Base Salary” shall be
(a) during the first year of the Term, the Executive’s Base Salary as of the Initial Effective
Date, and (b) during each successive year during the Term, the Executive’s Base Salary as of the
first day of such successive Term.

               4.7. Welfare Plans. The Executive shall be eligible to participate in and shall receive all
benefits under each welfare benefit plan of the Company currently maintained or subsequently
established by the Company for the benefit of its similarly-situated executive officers. Such
welfare benefit plans may include medical, dental, vision, disability, group life, accidental death
and travel accident insurance plans and programs (collectively “Welfare Plans”). The Executive’s
participation in the Welfare Plans shall be governed by the terms and conditions of those plans.

               4.8. Reimbursement of Expenses. The Executive may from time to time during the Term incur
various business expenses customarily incurred by persons holding positions of like responsibility,
including, without limitation, travel, entertainment and similar expenses incurred for the benefit
of the Company. The Company shall reimburse the Executive for all legitimate expenses incurred on
the Company’s behalf, upon the Company’s receipt of proper documentation for such expenses,
provided that reimbursement of the expenses would not violate the letter or spirit of any Company
policy regarding the reimbursement of such expenses.

               4.9. Indemnification and Insurance. At all times during the term of this Agreement, and for
such additional periods as are provided for in this Agreement, the Executive shall be covered under
the Company’s directors’ and officers’ liability insurance, if any, and under a separate Indemnity
Agreement with the Company.

          5. Termination. This Agreement may be terminated as follows:

               5.1. Death. This Agreement shall terminate automatically upon the death of the Executive.

               5.2. Disability. The Company may terminate this Agreement, upon written notice to the
Executive delivered in accordance with Sections 5.8 and 11.1, upon the Disability of the Executive.

               5.3. Cause. The Company may terminate this Agreement, upon written notice to the Executive
delivered in accordance with Sections 5.8 and 11.1, for Cause. For purposes of this Agreement,
“Cause” means (a) the Executive is convicted of, or pleads guilty or nolo contendere to, (i) a
felony, or (ii) any other crime involving the Company, (b) the Board of Directors makes a
reasonable, good faith determination that the Executive has breached any material term of this
Agreement, (c) the Board of Directors makes a reasonable, good faith determination that the
Executive has violated any applicable policies, rules, or regulations of the Company, including but

6

 

not limited to, the Company’s Code of Ethics and the Company’s policies regarding trading of Common
Stock and reimbursement of expenses, (d) the Board of Directors determines that the Executive
engaged in (i) willful or deliberate conduct, the result of which exposes the Company to actual or
potential financial or other injury, except as required by applicable law or regulation, (ii)
fraud, (iii) misappropriation of tangible or intangible property or funds of the Company, or (iv)
embezzlement of Company funds, (e) the Board of Directors determines that the Executive (i)
willfully or deliberately failed or refused to perform his assigned duties, except where the
performance of such duties would result in the Executive’s violation of applicable law or
regulation, and (ii) failed to cure his nonperformance within thirty (30) days of receipt of a
written notice from the Board of Directors setting forth in reasonable detail the facts and
circumstances of his nonperformance, or (f) the Executive breached any statutory or common law duty
of loyalty to the Company. For purposes of this Section 5.3, a determination by the Board of
Directors is evidenced by a resolution, duly adopted by at least two-thirds (2/3) of the entire
membership of the Board of Directors at a meeting called and held for the purpose of considering
the termination of the Executive’s employment for Cause, at which the Executive and his
representative have the right to attend and address the Board of Directors, finding that, in the
good faith belief of the Board of Directors the Executive engaged in conduct described in this
Section 5.3 and specifying the particulars thereof in reasonable detail. No determination by the
Board of Directors will prevent the Executive from contesting such determination through
arbitration, as provided in Section 11.9 of the Agreement.

               5.4. Without Cause. The Company may terminate this Agreement Without Cause, upon written
notice to the Executive delivered in accordance with Sections 5.8 and 11.1. For purposes of this
Agreement, the Executive will be deemed to have been terminated “Without Cause” if the Executive is
terminated by the Company for any reason other than Cause, Disability, or death.

               5.5. Good Reason. The Executive may terminate this Agreement for Good Reason, upon written
notice to the Company delivered in accordance with Sections 5.8 and 11.1. For purposes of this
Agreement, “Good Reason” means (a) the assignment to the Executive of any duties that are
materially inconsistent with the Executive’s duties or responsibilities as contemplated in this
Agreement, including any duties that would result in the Executive’s violation of applicable law or
regulation, (b) any other action by the Company which results in a material diminishment in the
Executive’s position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities (provided, however, that a temporary diminishment, whether material or
not, due to the Executive’s illness or injury, will not constitute grounds for a termination for
Good Reason by the Executive), (c) any material breach by the Company of any of the provisions of
this Agreement, (d) requiring the Executive to relocate permanently to any office or location,
except in the Phoenix-Scottsdale metropolitan area or any other location to which the majority of
the Company’s executive officers are relocated, without his consent, (e) any material reduction, or
attempted material reduction, at any time during the Term, of the Base Salary or in the aggregate
of the compensation or benefits described in Article 4 of this Agreement (provided, however, that
any change in the targeted percentage for purposes of determining the Executive’s Annual Incentive
Compensation, any change in the Company’s reimbursement policies, or any change in any Compensation
Plans or Welfare Plans, which affects a majority of the similarly situated executive officers
covered by those policies or plans, shall not be considered “Good Reason”), or (f) the Company’s
failure to comply, or the Company’s

7

 

preventing or impeding the Executive from compliance, with any
legal obligation which would subject the Executive to any civil or criminal liability, or which
would result in the Executive’s violation of applicable law or regulation.

               5.6. Without Good Reason. The Executive may terminate this Agreement Without Good Reason, upon
written notice to the Company delivered in accordance with Sections 5.8 and 11.1. For purposes of
this Agreement, the Executive will be deemed to have terminated “Without Good Reason” if the
Executive terminates this Agreement for any reason other than Good Reason or if this Agreement is
terminated due to the Executive’s death or Retirement.

               5.7. Retirement. The Executive may terminate this Agreement upon Retirement, upon written
notice to the Company delivered in accordance with Sections 5.8 and 11.1. For purposes of this
Agreement, “Retirement” means the Executive’s bona fide retirement from the Company, as determined
in good faith by the Board of Directors (or a committee thereof).

               5.8. Notice of Termination. Any termination of this Agreement by the Company for Cause,
Without Cause or as a result of the Executive’s Disability, or by the Executive for Good Reason or
Without Good Reason or upon Retirement shall be communicated by a Notice of Termination to the
other party. A “Notice of Termination” means a written notice which (a) indicates the specific
termination provision in this Agreement relied upon and (b) if the termination is by the Company
for Cause or by the Executive for Good Reason, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated. The Notice of Termination must specify the Date of Termination. In the case
of a termination by the Company for Cause or due to the Executive’s Disability or by the Executive
for Good Reason or due to Retirement, the Date of Termination may be as early as the date notice is
given but no later than thirty (30) calendar days after notice is given, unless otherwise agreed to
in writing by both parties. In the case of a termination by the Company Without Cause or by the
Executive Without Good Reason, the Date of Termination may be as early as fourteen (14) calendar
days after notice is given but no later than sixty (60) calendar days after notice is given, unless
otherwise agreed to by the parties in writing. The Notice of Termination shall also conform with
the provisions of Section 11.1.

          6. Obligations of Company Upon Termination.

               6.1. Cause, Without Good Reason. If this Agreement is terminated either by the Company for
Cause or by the Executive Without Good Reason, the Company shall pay to the Executive, in a lump
sum cash payment within thirty (30) days after the Date of Termination, the aggregate of (a) any
unpaid portion of the Executive’s Base Salary (as in effect on the Date of Termination) owed as of
the Date of Termination and (b) any accrued but unpaid Paid Leave as of the Date of Termination.
The Company also shall promptly pay or reimburse to the Executive any costs and expenses (and
moving and relocation expenses, if otherwise agreed to by the Company in writing) paid or incurred
by the Executive which would have been payable under Section 4.8 of this Agreement if the
Executive’s employment had not terminated.

                    All other obligations of the Company and rights of the Executive hereunder shall terminate
effective as of the Date of Termination; provided, however, that the Executive’s

8

 

rights under any
Compensation Plan or Welfare Plan shall be governed by the terms and provisions of each such plan
and are not necessarily severed on the Date of Termination.

               6.2. Death or Disability. If this Agreement is terminated as a result of the Executive’s death
or Disability:

                    (a) The Company shall pay to the Executive (or to his estate, in the event the Executive is
deceased) the following amounts:

               (1) any unpaid portion of the Executive’s Base Salary (as in effect on the Date of
Termination) owed as of the Date of Termination, any unpaid portion of the Annual Incentive
Compensation previously awarded to the Executive, and any accrued but unpaid Paid Leave as
of the Date of Termination, in a lump sum cash payment within thirty (30) days after the
Date of Termination; and

               (2) an amount equal to two (2) times the sum of the Executive’s Base Salary (as in
effect on the Date of Termination) plus the Executive’s Target Annual Incentive Compensation
for the fiscal year during which the Date of Termination occurs. If the termination is due
to death, this amount will be paid in substantially equal bi-weekly installments over a two
(2) year period following the Executive’s Date of Termination. If the termination is due to
Disability, this amount will be paid in substantially equal bi-weekly installments beginning
as of the first payroll date immediately following the six (6) month anniversary of the Date
of Termination and continuing until the first payroll date immediately following the two (2)
year anniversary of the Date of Termination; provided, however, that the first payment shall
include the amount that would have been paid prior to the actual first payment date had the
first payment date been the first payroll date immediately following the Date of
Termination. The Company may, to the extent feasible, purchase insurance to cover all or any
part of the obligation contemplated in this paragraph, and the Executive agrees to submit to
a physical examination and otherwise cooperate with the Company to facilitate the
procurement of such insurance.

                    (b) The Company shall, promptly upon submission by the Executive (or his estate) of supporting
documentation, pay or reimburse to the Executive any costs and expenses (including moving and
relocation expenses, if otherwise agreed to by the Company in writing) paid or incurred by the
Executive which would have been payable under Section 4.8 of this Agreement if the Executive’s
employment had not terminated.

                    (c) The Company shall continue providing medical, dental, and/or vision coverage to the
Executive and/or the Executive’s spouse and dependents, at least equal to that which would have
been provided to him under Section 4.7 if the Executive’s employment had not terminated, if such
coverage continues to be available to the Company, until the earlier of (1) the date the Executive
becomes eligible for any comparable medical, dental, or vision coverage provided by any other
employer, (2) the date the Executive becomes eligible for Medicare or any similar
government-sponsored or provided health care program (whether or not such coverage is equivalent to
that provided by the Company), or (3) the fifth (5th) anniversary of the Executive’s
Date of Termination.

9

 

                    (d) Whenever compensation is payable to the Executive under this Agreement during a period in
which he is partially or totally disabled, and such disability would (except for the provisions of
this Agreement) entitle the Executive to disability income or salary continuation payments from the
Company according to the terms of any plan or program presently maintained or hereafter established
by the Company, the disability income or salary continuation paid to the Executive pursuant to any
such plan or program shall be considered a portion of (and not in addition to) the payment to be
made to the Executive pursuant to this Section 6.2. If disability income is payable directly to the
Executive by an insurance company under the terms of an insurance policy paid for by the Company,
the amounts paid to the Executive by such insurance company shall be considered a portion of the
payment (and not in addition to the payment) to be made to the Executive pursuant to this Section
6.2.

                    (e) The Executive (or the Executive’s estate, as the case may be) shall continue to vest and,
if applicable, continue to be permitted to exercise, all of the rights and interests awarded to the
Executive under the Company’s stock plans, as if the Executive were still employed by the Company,
for a period of three (3) years following the Date of Termination (or, if less, for the remainder
of the stated terms of the rights or interests). Notwithstanding the foregoing, with respect to
any stock options that were both granted prior to January 1, 2004 and not vested as of December 31,
2004, the extension of the vesting and exercise periods for such options, pursuant to this
paragraph, shall be limited to (i.e., shall not extend beyond) the later of (1) the fifteenth
(15th) day of the third (3rd) calendar month following the date on which such
options would have otherwise expired based on the terms of such options as of their original date
of grant, or (2) December 31 of the calendar year in which such options would have otherwise
expired based on the terms of such options as of their original date of grant. Notwithstanding any
contrary provision of the LTIP, the Executive’s Awards for the Performance Cycles (as defined in
the LTIP) in effect as of the Date of Termination shall be prorated in the manner described in
Section 8(a) of the LTIP.

                    (f) The Executive (or the Executive’s estate, as the case may be) shall continue to be covered
under the Company’s directors’ and officers’ liability insurance, if any, and under his separate
Indemnity Agreement with the Company, as if the Executive’s employment had not terminated, for a
period of ten (10) years following his Date of Termination (or, in the case of the Indemnity
Agreement, for such longer term as may be provided for in the Indemnity Agreement).

                    (g) All other obligations of the Company and rights of the Executive hereunder shall terminate
effective as of the Date of Termination; provided, however, that except as otherwise specifically
modified by the terms of this Agreement the Executive’s rights under the Compensation Plans and
Welfare Plans shall be governed by the terms and provisions of those Plans and are not necessarily
severed on the Date of Termination.

               6.3. Good Reason; Without Cause. If this Agreement is terminated either by the Executive for
Good Reason or by the Company Without Cause (other than in connection with a Change in Control as
described in Section 6.5):

                    (a) The Company shall pay to the Executive the following amounts:

10

 

               (1) any unpaid portion of the Executive’s Base Salary (as in effect on the Date of
Termination) owed as of the Date of Termination, any unpaid portion of the Annual Incentive
Compensation previously awarded to the Executive, and any accrued but unpaid Paid Leave as
of the Date of Termination, in a lump sum cash payment within thirty (30) days after the
Date of Termination; and

               (2) an amount equal to three (3) times the sum of the Executive’s Base Salary (as in
effect on the Date of Termination) plus the Executive’s Target Annual Incentive Compensation
for the fiscal year during which the Date of Termination occurs, in substantially equal
bi-weekly installments beginning as of the first payroll date immediately following the six
(6) month anniversary of the Date of Termination and continuing until the first payroll date
immediately following the three (3) year anniversary of the Date of Termination; provided,
however, that the first payment shall include the amount that would have been paid prior to
the actual first payment date had the first payment date been the first payroll date
immediately following the Date of Termination.

                    (b) The Company shall promptly pay or reimburse to the Executive any costs and expenses
(including moving and relocation expenses, if otherwise agreed to by the Company in writing) paid
or incurred by the Executive which would have been payable under Section 4.8 of this Agreement if
the Executive’s employment had not terminated.

                    (c) The Company shall continue providing medical, dental, and/or vision coverage to the
Executive and/or the Executive’s spouse and dependents, at least equal to that which would have
been provided to the Executive under Section 4.7 if the Executive’s employment had not terminated,
until the earlier of (1) the date the Executive becomes eligible for any comparable medical,
dental, or vision coverage provided by any other employer, (2) the date the Executive becomes
eligible for Medicare or any similar government-sponsored or provided health care program (whether
or not such coverage is equivalent to that provided by the Company), or (3) the fifth anniversary
of the Executive’s Date of Termination.

                    (d) The Executive (or the Executive’s estate, as the case may be) shall continue to vest and,
if applicable, continue to be permitted to exercise, all of the rights and interests awarded to the
Executive under the Company’s stock plans, as if the Executive were still employed by the Company,
for a period of three (3) years following the Date of Termination (or, if less, for the remainder
of the stated terms of the rights and interests). Notwithstanding the foregoing, with respect to
any stock options that were both granted prior to January 1, 2004 and not vested as of December 31,
2004, the extension of the vesting and exercise periods for such options, pursuant to this
paragraph, shall be limited to (i.e., shall not extend beyond) the later of (1) the fifteenth
(15th) day of the third (3rd) calendar month following the date on which such
options would have otherwise expired based on the terms of such options as of their original date
of grant, or (2) December 31 of the calendar year in which such options would have otherwise
expired based on the terms of such options as of their original date of grant. Notwithstanding any
contrary provision of the LTIP, the Executive’s Awards for the Performance Cycles (as defined in
the LTIP) in effect as of the Date of Termination shall be prorated in the manner described in
Section 8(a) of the LTIP.

11

 

                    (e) The Executive shall continue to be covered under the Company’s directors’ and officers’
liability insurance, if any, and under his separate Indemnity Agreement with the Company, as if the
Executive’s employment had not terminated, for a period of ten (10) years following his Date of
Termination (or, in the case of the Indemnity Agreement, for such longer term as may be provided
for in the Indemnity Agreement).

                    (f) The Company shall (through an agency of Company’s choosing) provide outplacement services
to the Executive for a period of one (1) year following the Date of Termination, provided that the
cost of such services shall not exceed $50,000 or such higher amount as may be approved by the
Board of Directors (or a committee thereof).

                    (g) All other obligations of the Company and rights of the Executive hereunder shall terminate
effective as of the Date of Termination; provided, however, that except as otherwise specifically
modified by the terms of this Agreement the Executive’s rights under the Compensation Plans and
Welfare Plans shall be governed by the terms and provisions of these Plans and are not necessarily
severed on the Date of Termination.

                    (h) Notwithstanding anything to the contrary, if this Agreement is terminated either by the
Executive for Good Reason or by the Company Without Cause (other than in connection with a Change
in Control as described in Section 6.5) and the Date of Termination is within one (1) year of the
date on which the Executive would have satisfied the criteria for eligibility for normal (i.e., not
deferred) retirement payments as specified in Section 6.4(d)(1) below, the termination will be
deemed to have been in contemplation of the Executive’s Retirement, and the rights and obligations
of the parties shall be governed by Section 6.4 rather than this Section 6.3.

               6.4. Retirement. If this Agreement is terminated by the Executive due to Retirement:

                    (a) The Company shall pay to the Executive, in a lump sum cash payment within thirty (30) days
after the Date of Termination, the aggregate of the following amounts: (1) any unpaid portion of
the Executive’s Base Salary (as in effect on the Date of Termination) owed as of the Date of
Termination; (2) any unpaid portion of the Annual Incentive Compensation previously awarded to the
Executive; and (3) any accrued but unpaid Paid Leave as of the Date of Termination.

                    (b) The Company shall promptly pay or reimburse to the Executive any costs and expenses
(including moving and relocation expenses, if otherwise agreed to by the Company in writing) paid
or incurred by the Executive which would have been payable under Section 4.8 of this Agreement if
the Executive’s employment had not terminated.

                    (c) The Company shall continue providing medical, dental, and/or vision coverage to the
Executive and/or the Executive’s family, at least equal to that which would have been provided to
the Executive under Section 4.7 if the Executive’s employment had not terminated, until the earlier
of (1) the date the Executive becomes eligible for any comparable medical, dental, or vision
coverage provided by any other employer, or (2) the date the Executive becomes eligible for
Medicare or any similar government-sponsored or provided health care

12

 

program (whether or not such
coverage is equivalent to that provided by the Company). Following the date on which the Executive
becomes eligible for coverage under Medicare, the Executive may, at his election, continue to be
covered under the Company’s health coverage, if available, provided that the Executive pays all
applicable premiums charged by the Company or its third-party provider(s).

                    (d) The Company shall pay to the Executive retirement payments, as provided below:

               (1) If, as of the Date of Termination, the sum of the Executive’s age and years of
service with the Company equal at least sixty-three (63), the Executive is at least
fifty-five (55) years old, and the Executive has completed at least nine (9) years of
service with the Company, the Executive is entitled to normal retirement payments for each
year during the ten (10) year payment period equal to the product of sixty percent (60%) of
the Executive’s average Base Salary during the three (3) consecutive full calendar years of
employment immediately preceding the Date of Termination. Payments shall commence on the
first payroll date immediately following the six (6) month anniversary of the Date of
Termination and shall continue until the first payroll date immediately following the ten
(10) year anniversary of the Date of Termination (“Payment Period”). Payments shall be made
each payroll date during the Payment Period in substantially equal installments; provided,
however, that the first payment shall include the amount that would have been paid prior to
the actual first payment date had the first payment date been the first payroll date
immediately following the Date of Termination. Notwithstanding the foregoing, if, as of the
Date of Termination, the sum of the Executive’s age and years of service with the Company
equal at least sixty-three (63) and the Executive has completed at least nine (9) years of
service with the Company, but the Executive is younger than age fifty-five (55), the
Executive shall be entitled to deferred retirement payments, in the amount and form
described in the preceding sentence. The Executive’s deferred retirement payments shall
commence on the first payroll date immediately following the Executive’s attainment of age
fifty-five (55) and shall continue for ten (10) years thereafter; provided, however, that if
the Executive attains age fifty-five (55) prior to the six (6) month anniversary of the Date
of Termination, the first payment shall not be made until the first payroll period
immediately following the six (6) month anniversary of the Date of Termination and the first
payment shall include the amount that would have been paid prior to the actual first payment
date had the first payment date been the first payroll date immediately following the
Executive’s attainment of age fifty-five (55). For purposes of this Section 6.4(d), years of
service include all twelve (12) consecutive month periods of employment with the Company and
with any entity acquired by the Company, beginning with the Executive’s initial date of
employment with the Company or the acquired entity.

               (2) In the event of the Executive’s death prior to the payment of all of the retirement
payments determined under this Section 6.4(d), the balance of the payments shall be made to
the Executive’s surviving spouse, if any, or to any other beneficiary named by the Executive
in writing at the same time as such payments would have been made to the Executive.

13

 

               (3) In addition to the cessation provisions set forth in Section 6.7, any remaining
retirement payments shall immediately cease in the event the Executive works for a
competitor (as determined by the Company in its sole discretion) or becomes employed by any
other employer without the prior written consent of the Company. Notwithstanding the
foregoing, with the prior written consent of the Company, the Executive may be employed by
an entity which is not deemed by the Company to be in competition with the Company, in a
capacity in which the economic value of his total compensation is comparable to his total
compensation while employed by the Company, and receive retirement benefits which are
reduced proportionately by the compensation received by the Executive in the new position.
Also with the prior written consent of the Company, the Executive may be employed by an
entity which is not deemed by the Company to be in competition with the Company, in a
capacity in which his total compensation is materially less than his total compensation
while employed by the Company, in which case there would be no reduction in retirement
benefits.

                    (e) The Executive (or the Executive’s estate, as the case may be) shall continue to vest and,
if applicable, continue to be permitted to exercise, all of the rights and interests awarded to the
Executive under the Company’s stock plans, for a period of three (3) years following the Date of
Termination (or, if less, for the remainder of the stated terms of the rights and interests).
Notwithstanding the foregoing, with respect to any stock options that were both granted prior to
January 1, 2004 and not vested as of December 31, 2004, the extension of the vesting and exercise
periods for such options, pursuant to this paragraph, shall be limited to (i.e., shall not extend
beyond) the later of (1) the fifteenth (15th) day of the third (3rd) calendar
month following the date on which such options would have otherwise expired based on the terms of
such options as of their original date of grant, or (2) December 31 of the calendar year in which
such options would have otherwise expired based on the terms of such options as of their original
date of grant.

                    (f) The Executive shall continue to be covered under the Company’s directors’ and officers’
liability insurance, if any, and under his separate Indemnity Agreement with the Company, as if the
Executive’s employment had not terminated, for a period of ten (10) years following his Date of
Termination (or, in the case of the Indemnity Agreement, for such longer term as may be provided
for in the Indemnity Agreement).

                    (g) All other obligations of the Company and rights of the Executive hereunder shall terminate
effective as of the Date of Termination; provided, however, that except as otherwise specifically
modified by the terms of this Agreement the Executive’s rights under the Compensation Plans and
Welfare Plans shall be governed by the terms and provisions of these Plans and are not necessarily
severed on the Date of Termination.

                    (h) The payments and benefits provided under this Section 6.4 shall be in lieu of any payments
to which the Executive (or his family) may have otherwise been entitled under the terms of Section
6.2, 6.3 or 6.5, and vice versa.

          6.5. Change in Control. If this Agreement is terminated either by the Executive for Good
Reason or by the Company Without Cause, and the termination occurs within the six (6) month period
preceding, or the twelve (12) month period following, the date on which the Change in Control
occurs (“Change in Control Date”):

14

 

                    (a) As reasonable compensation for services rendered by the Executive to the Company prior to
the Date of Termination, the Company shall pay to the Executive the following amounts:

               (1) in a lump sum cash payment within thirty (30) days after the later to occur of the
Change in Control Date or the Date of Termination, any unpaid portion of the Executive’s
Base Salary (as in effect on the Date of Termination) owed as of the Date of Termination,
any unpaid portion of the Annual Incentive Compensation previously awarded to the Executive,
and any accrued but unpaid Paid Leave as of the Date of Termination; and

               (2) in a lump sum cash payment within thirty (30) days after the later to occur of the
Change in Control Date or the six (6) month anniversary of the Date of Termination, an
amount equal to three (3) times the sum of the Executive’s Base Salary (as in effect on the
Date of Termination) plus the Executive’s Target Annual Incentive Compensation for the
fiscal year during which the Date of Termination occurs.

                    (b) The Company shall promptly pay or reimburse to the Executive any costs and expenses
(including moving and relocation expenses, if otherwise agreed to by the Company in writing) paid
or incurred by the Executive which would have been payable under Section 4.8 of this Agreement if
the Executive’s employment had not terminated.

                    (c) The Company shall continue providing medical, dental, and/or vision coverage to the
Executive and/or the Executive’s family, at least equal to that which would have been provided to
the Executive under Section 4.7 if the Executive’s employment had not terminated, until the earlier
of (1) the date the Executive becomes eligible for any comparable medical, dental, or vision
coverage provided by any other employer, or (2) the date the Executive becomes eligible for
Medicare or any similar government-sponsored or provided health care program (whether or not such
coverage is equivalent to that provided by the Company).

                    (d) As reasonable compensation for services provided by the Executive to the Company prior to
the Date of Termination, the Company shall (through an agency of Company’s choosing) provide
outplacement services to the Executive for a period of one (1) year following the later of the Date
of Termination or the Change in Control Date, provided that the cost of such services shall not
exceed $50,000 or such higher amount as may be approved by the Board of Directors (or a committee
thereof).

                    (e) The Executive (or the Executive’s estate, as the case may be) shall become fully and
immediately vested as of the later of the Date of Termination or the Change in Control Date and, if
applicable, continue to be permitted to exercise, all of the rights and interests awarded to the
Executive under the Company’s stock plans (“Awards”), as if the Executive were still employed by
the Company, for a period of two (2) years following the later of the Date of Termination or the
Change in Control Date (or, if less, for the remainder of the stated terms of the rights and
interests); provided, however, that the extension of the exercise period provided for in this
Section 6.5(e) shall not apply to any Awards granted prior to the signature date of this Agreement.

15

 

                    (f) The Executive shall continue to be covered under the Company’s directors’ and officers’
liability insurance, if any, and under his separate Indemnity Agreement with the Company, as if the
Executive’s employment had not terminated, for a period of ten (10) years following his Date of
Termination (or, in the case of the Indemnity Agreement, for such longer term as may be provided
for in the Indemnity Agreement).

                    (g) All other obligations of the Company and rights of the Executive hereunder shall terminate
effective as of the Date of Termination; provided, however, that except as otherwise specifically
modified by the terms of this Agreement the Executive’s rights under the Compensation Plans and
Welfare Plans shall be governed by the terms and provisions of these Plans and are not necessarily
severed on the Date of Termination.

                    (h) In the event the Change in Control Date occurs subsequent to the Executive’s Date of
Termination, the payments and benefits provided under this Section 6.5 shall be reduced by and to
the extent of any payments and benefits previously paid or provided to the Executive under Section
6.3, and in no event shall the Executive or his family be entitled to any duplicate payments or
benefits.

          6.6. Change in Control Gross-Up Payments.

                    (a) In the event that (1) any payment or benefits provided for under this Agreement and/or any
other arrangement or agreement with the Company in connection with a Change in Control (“Change in
Control Payment”) would subject the Executive to the excise tax imposed by Code Section 4999 (“Cash
Termination Excise Tax”) and (2) the Change in Control Payment is less than 110% of the sum of
three (3) times the “base amount” (as defined in Code Section 280G) minus $1.00 (“Safe Harbor
Amount”), then any amounts payable under this Agreement shall be reduced so that the Change in
Control Payment, in the aggregate, is reduced to the Safe Harbor Amount. The reduction of the
amounts payable under this Agreement shall be made by first reducing the cash payments payable
under this Agreement (other than Unrestricted Payments), unless an alternative method of reduction
is agreed to by the Company and the Executive. No reduction shall occur if the Change in Control
Payment is 110% (or more) of the Safe Harbor Amount.

                    (b) In the event that (1) there is a Change in Control Payment which would subject the
Executive to the Cash Termination Excise Tax and is not subject to reduction under Section 6.6(a)
and (2) the closing stock price of the Company on the date of the Change in Control equals or
exceeds the Threshold Share Price, then the Executive shall be entitled to receive the payment
described in Section 6.6(c) below.

                    (c) If the requirements of Section 6.6(b) are met, the Executive shall be entitled to receive
an additional payment (a “Gross-Up Payment”) such that the net amount retained by the Executive,
after deduction of any excise tax on the Executive’s Change in Control Payment, as determined for
purposes of Code Section 280G, and any federal, state, and local income and employment taxes and
excise tax upon the Gross-Up Payment, shall be equal to the Change in Control Payment; provided,
however, that in determining the amount of the Gross-Up Payment to which the Executive is entitled
under this Section, the Gross-Up Payment (1) shall be capped at

16

 

250% of the “base amount” (as
defined in Code Section 280G), and (2) shall not include any amounts payable to the Executive under
the Allied Waste Industries, Inc. Supplemental Executive Retirement Plan. The Gross-Up Payment, if
any, shall be paid to the Executive, or, at the discretion of the Company, to governmental
authorities on the Executive’s behalf, as soon as practicable following the determination of the
Change in Control Payment, but, in any event, not later than five (5) business days immediately
following the payment of the Executive’s Change in Control Payment.

                    (d) Subject to the provisions of Section 6.6(e), all determinations required to be made under
this Section 6.6, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be
made by tax counsel appointed by the Company (the “Tax Counsel”). All fees and expenses of the Tax
Counsel shall be borne solely by the Company. As a result of the uncertainty in the application of
Code Section 4999 at the time of the initial determination by the Tax Counsel hereunder, it is
possible that Gross-Up Payments, which will not have been made by the Company, should have been
made (“Underpayment”). In the event that it is ultimately determined in accordance with the
procedures set forth in Section 6.6(e) that the Executive is required to make a payment of any
excise tax, the Tax Counsel shall determine the amount of the Underpayment that has occurred, and
any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive.

                    (e) The Executive shall notify the Company in writing of any claims by the Internal Revenue
Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such
notification shall be given as soon as practicable but no later than thirty (30) days after the
Executive actually receives notice in writing of such claim and shall apprise the Company of the
nature of such claim and the date on which such claim is requested to be paid. The Executive shall
not pay such claim prior to the expiration of the 30-day period following the date on which he
gives such notice to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to
the expiration of such period that it desires to contest such claim, the Executive shall:

               (1) give the Company any information reasonably requested by the Company relating to
such claim;

               (2) take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney selected by the Company and
reasonably acceptable to the Executive;

               (3) cooperate with the Company in good faith in order to effectively contest such
claim; and

               (4) if the Company elects not to assume and control the defense of such claim, permit
the Company to participate in any proceedings relating to such claim;

17

 

provided, however, that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and shall indemnify and
hold the Executive harmless, on an after-tax basis, for any excise tax or income tax (including
interest and penalties with respect thereto) imposed as a result of such representation and payment
of costs and expenses. Without limitation on the foregoing provisions of this Section 6.6(e), the
Company shall have the right, at its sole option, to assume the defense of and control all
proceedings in connection with such contest, in which case it may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in respect
of such claim and may either direct the Executive to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to
a determination before any administrative tribunal, in a court of initial jurisdiction and in one
or more appellate courts, as the Company shall determine; provided, however, that if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount
of such payment to the Executive, on an interest-free basis, and shall indemnify and hold the
Executive harmless, on an after-tax basis, from any excise tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and further provided, that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive with respect to
which such contested amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company’s right to assume the defense of and control the contest shall be limited
to issues with respect to which a Gross-Up Payment would be payable hereunder, and the Executive
shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

                    (f) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
Section 6.6(e), the Executive becomes entitled to receive any refund with respect to such claim,
the Executive shall (subject to the Company’s complying with the requirements of Section 6.6(e))
promptly pay to the Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 6.6(e), a determination is made that the Executive
shall not be entitled to any refund with respect to such claim, and the Company does not notify the
Executive in writing of its intent to contest such denial of refund prior to the expiration of
thirty (30) days after such determination, then such advance shall be forgiven and shall not be
required to be repaid, and the amount of such advance shall offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid.

          6.7. Payments Contingent on Executive’s Release of Company, Compliance with Continuing
Obligations, and Certain Other Contingencies. All of the payments and benefits to which the
Executive would otherwise be entitled under Sections 6.2, 6.3, 6.4, 6.5, or 6.6, except the
Unrestricted Payments, shall be contingent on (a) the Executive’s delivery to the Company of a
signed and enforceable release of all claims against the Company, in a form specified by the
Company, except that no such release shall be required in the event that the Company fails to
tender such release to the Executive for his signature within thirty (30) days of his Date of
Termination, and (b) the Executive’s compliance with the Continuing Obligations. In addition, if
the Executive fails to comply with the Continuing Obligations, then the Company shall have the
right, upon notice to the Executive (describing such failure to comply in reasonable detail) to
terminate all of the payments and benefits described in the preceding sentence, other than the

18

 

Unrestricted Payments, and to recover from the Executive (i) any and all payments made or benefits
paid to or for the benefit of the Executive, other than the Unrestricted Payments, that the Company
paid to or for the benefit of the Executive or to which the Executive otherwise would not have been
entitled if the Company had terminated the Executive for Cause as of the date of termination of
this Agreement, and (ii) any and all proceeds realized by the Executive subsequent to the date of
termination of this Agreement upon vesting, exercise, or sale of Common Stock granted or issued to
the Executive under the Company’s Compensation Plans. Furthermore, if the Company becomes aware,
subsequent to the Date of Termination, that the Executive was engaged in conduct during the Term
that, had the Company been aware of such conduct, would have permitted the Company to terminate
this Agreement during the Term for Cause, then the Company shall have the right, upon notice to the
Executive (describing such conduct in reasonable detail), (A) to terminate all payments and
benefits, other than the Unrestricted Payments, then remaining payable to or for the benefit of the
Executive under Sections 6.2, 6.3, 6.4, 6.5, or 6.6 (including but not limited to continued vesting
or payment of any unvested or unexercised awards under the Company’s Compensation Plans), and (B)
to recover from the Executive (1) any and all payments made or benefits paid to or for the benefit
of the Executive, including all or any portion of the Unrestricted Payments, that the Company would
not have been obligated to pay to or for the benefit of the Executive or to which the Executive
otherwise would not have been entitled if the Company had terminated the Executive for Cause as a
result of such conduct at or promptly after the time on which such conduct first occurred, and (2)
any and all proceeds realized by the Executive subsequent to the date on which such conduct first
occurred upon vesting, exercise, or sale of Common Stock granted or issued to the Executive under
the Company’s Compensation Plans. The Executive shall repay to the Company all amounts due under
the preceding sentences promptly upon demand for such payment by the Company.

          7.      Executive’s Confidentiality Obligation.

                    7.1. The Executive hereby acknowledges, understands and agrees that all Confidential
Information is the exclusive and confidential property of the Company and its Affiliates which
shall at all times be regarded, treated and protected as such in accordance with this Article 7.
The Executive acknowledges that all such Confidential Information is in the nature of a trade
secret.

                    7.2. For purposes of this Agreement, “Confidential Information” means information, not
generally known to the public, that is used in the business of the Company and (a) is proprietary
to, about or created by the Company, (b) gives the Company some competitive business advantage or
the opportunity of obtaining such advantage or the disclosure of which is likely to be detrimental
to the interests of the Company, (c) is designated as Confidential Information by the Company, is
known by the Executive to be considered confidential by the Company, or from all the relevant
circumstances should reasonably be assumed by the Executive to be confidential and proprietary to
the Company, or (d) is not generally known by non-Company personnel. Such Confidential Information
includes, without limitation, the following types of information and other information of a similar
nature (whether or not reduced to writing or designed as confidential):

                         (a) Internal personnel and financial information of the Company, information about vendors
that is not generally known but is known to the Company as a result of

19

 

the Company’s relationship
with the vendor (including vendor characteristics, services, prices, lists and agreements),
purchasing and internal cost information, internal service and operational manuals, and the manner
and methods of conducting the business of the Company;

               (b) Marketing and development plans, price and cost data, price and fee amounts, pricing and
billing policies, quoting procedures, marketing techniques, forecasts and forecast assumptions and
volumes, and future plans and potential strategies (including, without limitation, all information
relating to any acquisition prospect and the identity of any key contact within the organization of
any acquisition prospect) of the Company which have been or are being discussed;

               (c) Names of customers and their representatives, contracts (including their contents and
parties), customer services, and the type, quantity, specifications and content of products and
services purchased, leased, licensed or received by customers of the Company;

               (d) Confidential and proprietary information provided to the Company by any actual or
potential customer, government agency or other third party (including businesses, consultants and
other entities and individuals);

               (e) Any non-public information about the Company’s landfill development plans, landfill
capacity, and the status of the permitting process with respect to any aspect of the Company’s
business; and

               (f) Any non-public information about the existence or status of any governmental
investigation, charge, or lawsuit, the status or the position of the Company regarding the value of
any claim or charge (whether filed by the government or a third party), the Company’s interest in
resolving any such claim or charge; or any non-public information regarding the Company’s
compliance with federal, state or local laws.

          7.3. As a consequence of the Executive’s acquisition or anticipated acquisition of
Confidential Information, the Executive shall occupy a position of trust and confidence with
respect to the affairs and business of the Company. In view of the foregoing, and of the
consideration to be provided to the Executive, the Executive agrees that it is reasonable and
necessary that the Executive make each of the following covenants:

               (a) At any time during the Term and thereafter, the Executive shall not disclose Confidential
Information to any person or entity, either inside or outside of the Company, other than as
necessary in carrying out his duties and responsibilities as set forth in Article 2, without first
obtaining the Company’s prior written consent, unless such disclosure is required by applicable law
or regulation;

               (b) At any time during the Term and thereafter, the Executive shall not use, copy or transfer
Confidential Information other than as necessary in carrying out his duties and responsibilities as
set forth in Article 2, without first obtaining the Company’s prior written consent, except as
required by applicable law or regulation; and

20

 

               (c) On the Date of Termination, the Executive shall promptly deliver to the Company (or its
designee) all written materials, records and documents made by the Executive or which came into his
possession prior to or during the Term concerning the business or affairs of the Company,
including, without limitation, all materials containing Confidential Information.

          7.4. The Executive acknowledges and agrees that the use of the term “Company” in this Article
7 means both the Company and its Affiliates.

     8. Disclosure of Information, Ideas, Concepts, Improvements, Discoveries and Inventions.
Consistent with the Executive’s fiduciary duties to the Company, the Executive agrees that during
his employment by the Company, the Executive shall promptly disclose in writing to the Company all
information, ideas, concepts, improvements, discoveries and inventions, which are conceived,
developed, made or acquired by the Executive, either individually or jointly with others, and which
relate to the business, products or services of the Company, irrespective of whether the Executive
used the Company’s time or facilities and irrespective of whether such information, idea, concept,
improvement, discovery or invention was conceived, developed, discovered or acquired by the
Executive on the job, at home, or elsewhere. This obligation extends to all types of information,
ideas and concepts, including, information, ideas and concepts relating to new types of services,
corporate opportunities, acquisition prospects, the identity of key representatives within
acquisition prospect organizations, prospective trade names or service marks for the Company’s
business activities, and the like. The Executive acknowledges and agrees that the use of the term
“Company” in this Article 8 means both the Company and its Affiliates.

     9. Ownership of Information, Ideas, Concepts, Improvements, Discoveries and all Original Works
of Authorship.

          9.1. All information, ideas, concepts, improvements, and discoveries which are conceived,
made, developed or acquired by the Executive or which are disclosed or made known to the Executive,
individually or in conjunction with others, during the Executive’s employment by the Company and
which relate to the business, products or services of the Company (including, without limitation,
all such information relating to corporate opportunities, research, financial and sales data,
pricing and trading terms, evaluations, opinions, interpretations, acquisition prospects, the
identity of customers or their requirements, the identity of key contacts within the customers’
organizations or within the organization of acquisition prospects, marketing and merchandising
techniques, and prospective names and service marks) are and shall be the sole and exclusive
property of the Company. Furthermore, all drawings, memoranda, notes, records, files,
correspondence, manuals, models, specifications, computer programs, maps and all other writings or
materials of any type embodying any of such information, ideas, concepts, improvements, and
discoveries are and shall be the sole and exclusive property of the Company.

          9.2. In particular, the Executive hereby specifically sells, assigns, transfers and conveys to
the Company all of his worldwide right, title and interest in and to all such information, ideas,
concepts, improvements, and discoveries, and any United States or foreign applications therefore.
The Executive shall assist the Company and its nominee at all times and in all manners, during the
Term and thereafter, in the protection of such information, ideas, concepts, improvements, or
discoveries.

21

 

          9.3. In the event the Executive individually, or jointly with others, creates, during the Term
(whether the initial or any successive Term), any original work of authorship fixed in any tangible
medium of expression which is the subject matter of copyright (such as videotapes, written
presentations on acquisitions, computer programs, drawings, maps, architectural renditions, models,
manuals, brochures or the like) relating to the Company’s business products or services, the
Company shall be deemed the author of such work if the work is prepared by the Executive within the
scope of his employment; or, if the work is not prepared by the Executive within the scope of his
employment but is specially ordered by the Company as a contribution to a collective work, as a
part of a motion picture or other audiovisual work, as a translation, as a supplementary work, as a
compilation or as an instructional text, then the work shall be considered to be a work made for
hire, and the Company shall be the author of such work. If such work is neither prepared by the
Executive within the scope of his employment nor a work specially ordered and deemed to be a work
made for hire, then the Executive hereby agrees to sell, transfer, assign and convey, and by these
presents, does sell, transfer, assign and convey, to the Company all of the Executive’s worldwide
right, title and interest in and to such work and all rights of copyright therein. The Executive
agrees to assist the Company, at all times, during the Term and thereafter, in the protection of
the Company’s worldwide right, title and interest in and to such work and all rights of copyright
therein, which assistance shall include, but shall not be limited to, the execution of all
documents requested by the Company or its nominee and the execution of all lawful oaths and
applications for registration of copyright in the United States and foreign countries.

          9.4. The Executive acknowledges and agrees that the use of the term “Company” in this Article
9 means both the Company and its Affiliates.

     10. Executive’s Non-Competition and Non-Solicitation Obligations.

          10.1. For purposes of this Article 10:

                    (a) “Company” means both the Company and its Affiliates.

                    (b) “Competitor” means any company that provides Non-hazardous Solid Waste Management services
in any state in which the Company does business. “Principal Competitor” means Waste Management,
Inc., Republic Services, Inc., Capital Environmental Resource, Inc., Onyx Waste Services
Incorporated, Waste Industries USA, Inc., Waste Connections, Inc., or Casella Waste Systems, Inc.
(or their predecessors and successors, subsidiaries, or affiliate operations), or any other public
or private business (including their predecessors and successors, subsidiaries, or affiliate
operations) conducting Non-hazardous Solid Waste Management in three (3) or more states in which
the Company does business.

                    (c) For purposes of Section 10.3(c) and (d), “Rendering Services” means any of the following
activities, whether done directly or through others, whether done in person or through telephonic,
electronic, or some other means of communication, and whether done as a principal, director,
officer, agent, employee, contractor or consultant: (1) performing any kind of services or duties
related to Non-hazardous Solid Waste Management; (2) managing, selling, marketing or brokering
Non-hazardous Solid Waste Management services; (3) developing, managing or otherwise handling data
or information concerning potential or actual acquisitions of businesses that engage in
Non-hazardous Solid Waste Management; (4) participating in any

22

 

decision, or developing or
implementing any strategy, to acquire such businesses; (5) formulating, reviewing or implementing
marketing, sales, financial or operational strategies related to Non-hazardous Solid Waste
Management; (6) conducting or reviewing cost benefit analysis on actual or proposed projects
related to Non-hazardous Solid Waste Management; or (7) performing any functions that are the same
as, or substantially similar to, the duties Executive performed under Article 2 of this Agreement.

                    (d) For purposes of Section 10.3(e), “Rendering Services” means any of the following
activities, whether done directly or through others, whether done in person or through telephonic,
electronic, or some other means of communication, and whether done as a principal, director,
officer, agent, employee, contractor or consultant: (1) managing, selling, marketing or brokering
portable toilet, street sweeping or other services then provided by the Company; (2) formulating,
reviewing or implementing marketing, sales, financial or operational strategies related to portable
toilet, street sweeping or other services then provided by the Company; (3) conducting or reviewing
cost benefit analysis on actual or proposed projects related to portable toilet, street sweeping or
other services then provided by the Company; or (4) performing any functions that are the same as,
or substantially similar to, the duties Executive performed under Article 2 of this Agreement.

                    (e) “Contact” means any direct or indirect interaction between the Executive and any customer,
potential customer or acquisition prospect which takes place in an effort to further a business
relationship, whether done directly or through others, whether in person or through telephonic,
electronic, or some other means of communication, and whether done as a principal, director,
officer, agent, employee, contractor or consultant.

                    (f) “Non-hazardous Solid Waste Management” means the collection, hauling, disposal or
recycling of non-hazardous refuse.

                    (g) “Facility” means any office, transfer station, hauling operation, landfill, or recycling
center of the Company.

          10.2. Prohibition on Competition and Solicitation During Employment.

                    (a) At no time during the Term (whether the initial or any successive Term) will the
Executive, directly or indirectly, provide service as a principal, director, officer, agent,
employee, consultant or contractor in or to any business that conducts Non-hazardous Solid Waste
Management operations or provides portable toilet, street sweeping or any other services that the
Company provides.

                    (b) At no time during the Term (whether the initial or any successive Term) will the Executive
directly or indirectly (1) induce, entice or solicit any employee of the Company to leave his or
her employment, (2) Contact, communicate or solicit any customer, potential customer, or
acquisition prospect of the Company for the purpose of ending or avoiding a business relationship,
or (3) use any information regarding actual or potential customers or acquisition targets of the
Company for any purpose other than in performing his duties under this Agreement.

23

 

          10.3. Prohibition Against Competition After Employment.

                    (a) The Executive agrees that, after the Date of Termination, he will not compete with the
Company to the extent, and subject to the express limitations, provided in this Section 10.3. At no
time during the Term will the Executive, directly or indirectly, provide service as a principal,
director, officer, agent, employee, consultant or contractor in or to any business that conducts
Non-hazardous Solid Waste Management operations or provides portable toilet, street sweeping or any
other services that the Company provides.

                    (b) The Executive’s obligation not to compete with the Company will end three (3) years after
the Date of Termination. If a court concludes that three (3) years is an unreasonable time for that
obligation, the Executive’s obligation to not compete with the Company will end two (2) years after
the Date of Termination.

                    (c) During the Executive’s employment as Executive Vice President and Chief Financial Officer,
he will be active in all significant management and operational issues and will possess
Confidential Information regarding the Company’s operations across the nation, not just in any
particular geographic area around where his office is or will be located. Confidential Information
the Executive may be given about the Company’s strategic plans, its acquisition targets, and cost
and profit margins in various markets, for example, will not be limited to the area around the
corporate office or any other particular geographic area of the country. Thus, the scope of
Executive’s obligation to not compete with the Company cannot reasonably be limited to a particular
geographic area. Executive’s employment with any business that provides Non-hazardous Solid Waste
Management services, regardless of location, is likely to harm the Company’s business interests.
Accordingly, Executive agrees that he will not Render Services to any Competitor or any Principal
Competitor that are: (i) rendered in a state in which the Company does business; or (ii) directed
at achieving, or intended to achieve, a result in any such state.

                    (d) The parties acknowledge that they have chosen Arizona law to apply to this Agreement (see
Section 11.6) and that Arizona courts have not addressed under what circumstances, and to what
extent, restrictive covenants that apply to a multi-state area are enforceable. Thus, the parties
wish to include Section 10.3(d) as a back-up to the restrictions in Section 10.3(c) in the event a
court concludes that those restrictions are not reasonably limited and severs the applicable
portions of Section 10.3(c) under Arizona’s “blue pencil” rule. Accordingly, Executive will not
Render Services to any Competitor or Principal Competitor that are: (i) rendered within forty (40)
miles of any Facility; or (ii) directed at achieving, or intended to achieve, a result within forty
(40) miles of any Facility. Executive acknowledges that the restrictions in this Section 10.3(d)
are separate and apart from the restrictions in Section 10.3(c) above.

                    (e) Additionally, Executive will not Render Services to any business providing portable toilet
street sweeping or other services within forty (40) miles of any Facility at which the same or
similar services are provided.

                    (f) The non-compete restrictions in this Section 10.3 are expressly intended to preclude the
Executive from physically working in a geographic area that is not covered by the applicable
restriction (i.e., working in a state in which the Company is not conducting

24

 

business) but where
the Executive’s responsibilities would include any management, oversight or analysis of a business
unit in a geographic area covered by the applicable restriction.

          10.4. Prohibition Against Solicitation After Employment.

                    (a) The Executive agrees that, after the Date of Termination, he will limit his activities
relating to the customers, potential customers, acquisition prospects, and employees of the Company
to the extent, and subject to the express limitations, provided in this Section 10.4.

                    (b) The Executive’s obligations under this Section 10.4 will end three (3) years after the
Date of Termination. If a court concludes that three (3) years is an unreasonable time for those
obligations, Executive’s obligations under this Section 10.4 will end two (2) years after the Date
of Termination.

                    (c) The Executive will not Contact customers, potential customers, or acquisition prospects of
the Company for any purpose related to providing Non-hazardous Solid Waste Management services in
any state in which the Company does business. In the event a court concludes that this particular
restriction is not reasonably limited, the Executive will not Contact customers, potential
customers or acquisition prospects of the Company for any purpose related to providing
Non-hazardous Solid Waste Management services within forty (40) miles of any Facility.

                    (d) Additionally, the Executive will not Contact customers, potential customers or acquisition
prospects of the Company for any purpose related to providing portable toilet, street sweeping or
other services within forty (40) miles of any Facility at which the same or similar services are
provided.

                    (e) The Executive will not solicit any employee or consultant of the Company to work for any
other person or to leave his or her employment. The Executive will not, directly or indirectly, be
involved in the recruiting and/or hiring (whether that involvement is in the nature of serving as a
reference or as a decision-maker) of any person employed or retained as a consultant by the
Company.

                    (f) In the event a court concludes that the restrictions in Section 10.4(e) are not reasonably
limited, Executive will not: (i) solicit any employee or consultant of the Company who, directly
or indirectly, reported to Executive at any time during the Term, where the solicitation is to
encourage the employee or consultant to work for any other person or entity, or to leave his or her
employment; or (ii) be involved in the recruiting and/or hiring (whether that involvement is in the
nature of serving as a reference or as a decision-maker) of any such employee or consultant.

          10.5. Other Provisions.

                    (a) The Executive acknowledges and agrees that a violation of the promises he has made under
this Article 10 is likely to cause irreparable harm to the Company and justify the grant of
injunctive relief. Additionally, to provide the Company with the protections it

25

 

has bargained for
in this Article 10, any period of time in which the Executive has been in breach of the provisions
in this Article 10 will extend, by that amount of time, the time for which he should be precluded
from further breaching the promises made in this Article 10, provided that the Company does not
unreasonably delay in bringing appropriate legal action after discovery of any such breach by
Executive.

                    (b) If the applicable temporal or geographic limitations agreed to by the parties in this
Article 10 are found by a court to be overly broad, the parties expressly authorize the judge
before whom any dispute is brought to impose the broadest temporal and geographic limitations
permissible under the law, so as to effectuate the parties’ intent and ensure that the Company
obtains the protections it sought and for which it provided material consideration in this
Agreement.

     11. Miscellaneous.

          11.1. Notices. All notices and other communications required or permitted under this Agreement
shall be in writing and shall be deemed to have been given when delivered by hand or mailed by
registered or certified mail, return receipt requested, as follows (provided that notice of a
change of address shall be deemed given only when received):

If to the Company:

Allied Waste Industries, Inc.

18500 North Allied Way

Phoenix, Arizona 85054

Attn: General Counsel

If to the Executive:

Peter S. Hathaway, Executive Vice President and Chief Financial Officer

c/o Allied Waste Industries, Inc.

18500 North Allied Way

Phoenix, Arizona 85054

or to such other names or addresses as the Company or the Executive, as the case may be, shall
designate by notice to the other party in the manner specified in this Section 11.1.

          11.2. Waiver of Breach. The waiver by any party of a breach of any provision of this Agreement
shall neither operate nor be construed as a waiver of any subsequent breach by any party. No breach
shall be deemed waived unless the waiver is in a writing signed by the non-breaching party.

          11.3. Assignment. This Agreement shall be binding upon and inure to the benefit of the
Company, its Affiliates, successors, legal representatives and assigns, and upon the Executive, his
heirs, executors, administrators, legal representatives and assigns; provided, however, the
Executive agrees that his rights and obligations hereunder are personal to him and may not be
assigned without the express written consent of the Company.

26

 

          11.4. Entire Agreement, No Oral Amendments. This Agreement, together with any schedule or
exhibit attached hereto and any document, policy, rule or regulation referred to herein, replaces
and merges all previous agreements and discussions relating to the same or similar subject matter
between the Executive and the Company and constitutes the entire agreement between the Executive
and the Company with respect to the subject matter of this Agreement. This Agreement may not be
modified in any respect by any verbal statement, representation or agreement made by any employee,
officer, or representative of the Company or by any written agreement unless signed by an officer
of the Company who is expressly authorized by the Company to execute such document.

          11.5. Enforceability. If any provision of this Agreement or application thereof to anyone or
under any circumstances shall be determined to be invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provisions or applications of this Agreement which can
be given effect without the invalid or unenforceable provision or application.

          11.6. Jurisdiction, Venue. The laws of the State of Arizona shall govern the interpretation,
validity and effect of this Agreement without regard to the place of execution or the place for
performance thereof, and the Company and the Executive agree that the courts situated in Maricopa
County, Arizona shall have personal jurisdiction over the Company and the Executive to hear all
disputes arising under this Agreement. This Agreement is to be at least partially performed in
Maricopa County, Arizona, and as such, the Company and the Executive agree that venue shall be
proper with the courts in Maricopa County, Arizona to hear such disputes. In the event either party
is not able to effect service of process upon the other party with respect to such disputes, the
Company and the Executive expressly agree that the Secretary of State for the State of Arizona
shall be an agent of the Company and/or the Executive to receive service of process on behalf of
the Company and/or the Executive with respect to such disputes.

          11.7. Injunctive Relief. The Company and the Executive agree that a breach of any term of this
Agreement by the Executive would cause irreparable damage to the Company and that, in the event of
such breach, the Company shall have, in addition to any and all remedies of law, the right to any
injunction, specific performance and other equitable relief to prevent or to redress the violation
of the Executive’s obligations under this Agreement.

          11.8. Withholding. All payments made pursuant to this Agreement shall be net of payroll and
withholding deductions as may be required by law and other deductions that are either applied
generally to employees of the Company for insurance and other employee benefit plans or authorized
by Executive.

          11.9. Arbitration. With the sole exception of any breach by the Executive of the obligations
he assumed under Sections 10.1, 10.2, 10.3, 10.4 and/or 10.5 of this Agreement (the breach of which
permits the Company to obtain judicial relief due to the exigent circumstances presented by such a
breach), all other alleged breaches of this Agreement, or any other dispute between the parties to
this Agreement arising out of or in connection with the Executive’s employment with the Company
will be settled by binding arbitration to the fullest extent permitted by law. This Agreement to
arbitrate applies to any claim for relief of any nature, including but not limited to claims of
wrongful discharge under statutory law and common law; employment

27

 

discrimination based on federal,
state or local statute, ordinance, or governmental regulations, including discrimination prohibited
by: (a) Title VII of the Civil Rights Act of 1964, as amended, (b) the Age Discrimination in
Employment Act, (c) the Americans with Disabilities Act, (d) the Fair Labor Standards Act, and (e)
claims of retaliatory discharge or other acts of retaliation; compensation disputes; tortuous
conduct; allegedly contractual violations; ERISA violations; and other statutory and common law
claims and disputes, regardless of whether the statute was enacted or whether the common law
doctrine was recognized at the time this Agreement was signed.

          The parties to this Agreement understand that they are agreeing to substitute one legitimate
dispute resolution forum (arbitration) for another (litigation) because of the mutual advantages
this forum offers, and are waiving their right to have their disputes (except as to breaches of
Sections 10.1, 10.2, 10.3, 10.4 and/or 10.5 of this Agreement) resolved in court. This substitution
involves no surrender, by either party, of any substantive statutory or common law benefit,
protection, or defense.

          The arbitration proceeding shall be conducted in Maricopa County, Arizona, in accordance with
the National Rules for the Resolution of Employment Disputes (National Rules) of the American
Arbitration Association (AAA) in effect at the time a demand for arbitration is made.

          One arbitrator shall be used and he or she shall be chosen by mutual agreement of the parties
to this Agreement. If, within thirty (30) days after the Executive notifies the Company of an
arbitrable dispute, no arbitrator has been chosen, an arbitrator shall be chosen by the AAA
pursuant to its National Rules. The arbitrator shall coordinate and, as appropriate, limit all
pre-arbitration discovery. However, the parties to this Agreement will have the right to obtain
discovery through appropriate decision and award, stating the reasons for the award. The decision
and award shall be exclusive, final, and binding on both parties to this Agreement, their heirs,
executors, administrators, successors, and assigns.

          The Company will pay all costs and expenses of the arbitration, except for the filing fees and
costs that would have been required had the proceeding been initiated and maintained in the
Maricopa County Superior Court, which fees and costs the Executive will pay. Each party shall pay
their own attorneys’ fees and expenses throughout the arbitration proceeding. However, the
arbitrator may award the successful party its attorneys’ fees and expenses at the conclusion of the
arbitration (and any other relief provided by law).

28

 

	 	 	 	 	 	 	 	 	 
	Dated: March 2, 2007.	 	 	 	ALLIED WASTE INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	 	 	 
	 

	 	 	 	 	 	 

John J. Zillmer,
	 	 
	 

	 	 	 	 	 	      Chief Executive Officer	 	 
	 

	 	 	 	 	 	      & Chairman of the Board of Directors	 	 
	 

	 	 	 	 	 	“Company”	 	 
	 
	 	 	 	 	 	 	 	 
	Dated: March 2, 2007.

	 	 	 	 	 	 

Peter S. Hathaway
	 	 
	 

	 	 	 	 	 	 “Executive”	 	 

29exv10w4

 

EXHIBIT 10.4

EXECUTIVE EMPLOYMENT AGREEMENT

     ALLIED WASTE INDUSTRIES, INC., a Delaware corporation (“Company”) and EDWARD A. EVANS
(“Executive”) enter into this amended and restated Executive Employment Agreement (“Agreement”) to
set forth the terms and conditions of Executive’s employment. This Agreement supersedes any prior
employment agreement(s) between the parties. The parties agree as follows:

     1. Certain Definitions and Understandings. As used in this Agreement, the following terms have
the meanings prescribed below:

          Annual Incentive Compensation is defined in Section 4.2.

          Base Salary is defined in Section 4.1.

          Beneficial Owner is defined in Rule 13(d)-3 under the Exchange Act; provided, however, and
without limitation, that any individual, corporation, partnership, group, association or other
person or entity that has the right to acquire any Voting Stock at any time in the future, whether
such right is (a) contingent or absolute, or (b) exercisable presently or at any time in the
future, pursuant to any agreement or understanding or upon the exercise or conversion of rights,
options or warrants, or otherwise, shall be the Beneficial Owner of such Voting Stock.

          Board of Directors (or Board) means the Company’s Board of Directors.

          Cash Termination Excise Tax is defined in Section 6.6(a).

          Cause is defined in Section 5.3.

          Change in Control of the Company means one of the following: (a) the Company merges or
consolidates, or agrees to merge or to consolidate, with any other corporation (other than a
wholly-owned direct or indirect subsidiary of the Company) and is not the surviving corporation (or
survives as a subsidiary of another corporation), (b) the Company sells, or agrees to sell, all or
substantially all of its assets to any other person or entity, (c) the Company is dissolved, (d)
any third person or entity (other than Apollo Advisors, L.P., The Blackstone Group L.P., or a
trustee or committee of any qualified employee benefit plan of the Company) together with its
Affiliates shall become (by tender offer or otherwise), directly or indirectly, the Beneficial
Owner of at least 30% of the Voting Stock of the Company, or (e) the individuals who constitute the
Board of Directors of the Company as of the Effective Date (“Incumbent Board”) shall cease for any
reason to constitute at least a majority of the Board of Directors; provided, that any person
becoming a director whose election or nomination for election was approved by a majority of the
members of the Incumbent Board shall be considered, for the purposes of this Agreement, a member of
the Incumbent Board.

 

 

          Change in Control Date is defined in Section 6.5.

          Change in Control Payment is defined in Section 6.6(a).

          Code means the Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated by the Internal Revenue Service thereunder.

          Common Stock means the Company’s common stock, par value $.01 per share.

          Company means Allied Waste Industries, Inc., a Delaware corporation.

          Compensation Plans is defined in Section 4.6.

          Confidential Information is defined in Section 7.2.

          Continuing Obligations is defined in Article 3.

          Date of Termination means the earliest to occur of (a) the date of the Executive’s death, or
(b) the date specified in the Notice of Termination, in accordance with Section 5.8.

          Disability means an illness or other disability which prevents the Executive from discharging
the essential functions of his responsibilities under this Agreement, with or without a reasonable
accommodation, for a period of 180 consecutive calendar days, or an aggregate of 180 calendar days
in any calendar year, during the Term, all as determined in good faith by the Board of Directors
(or a committee thereof).

          Effective Date means the effective date of this amended and restated Executive Employment
Agreement, which is September 19, 2005, except as may otherwise be provided herein.

          Exchange Act means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the Securities and Exchange Commission thereunder.

          Executive means Edward A. Evans (or, as applicable, his heirs).

          Good Reason is defined in Section 5.5.

          Gross-Up Payment is defined in Section 6.6(c).

          LTIP means the Company’s Long-Term Incentive Plan.

          Notice of Termination is defined in Section 5.8.

2

 

          Paid Leave is defined in Section 4.3.

          Retirement is defined in Section 5.7.

          Safe Harbor Amount is defined in Section 6.6(a).

          Share Price has the same meaning as “Fair Market Value” as that term is defined in the
Company’s 1991 Incentive Stock Plan, as amended.

          Targeted Annual Incentive Compensation is defined in Section 4.2.

          Term is defined in Article 3.

          Threshold Share Price means (a) in the case of the calendar year beginning January 1, 2007, a
Share Price of $16 or more, or (b) in the case of subsequent calendar years, a Share Price which is
at least fifteen percent (15%) greater than the Threshold Share Price for the preceding calendar
year, provided that the annual increase is subject to review and adjustment as determined to be
appropriate by the Management Development/Compensation Committee of the Board of Directors.

          Unrestricted Payments means those payments to which the Executive is entitled under Sections
6.2(a)(1), 6.3(a)(1), 6.4(a), and 6.5(a)(1) of this Agreement.

          Voting Stock means all outstanding shares of capital stock of the Company entitled to vote
generally in an election of directors; provided, however, that if the Company has shares of Voting
Stock entitled to more or less than one (1) vote per share, each reference to a proportion of the
issued and outstanding shares of Voting Stock shall be deemed to refer to the proportion of the
aggregate votes entitled to be cast by the issued and outstanding shares of Voting Stock.

          Welfare Plans is defined in Section 4.7.

          Without Cause is defined in Section 5.4.

          In addition, throughout this Agreement, the parties have defined certain words and intend for
those definitions to apply whenever the parties have used a defined word in this Agreement. One of
the defined terms is “Company” which means Allied Waste Industries, Inc. However, the parties
expect that some or all of the Company’s obligations under this Agreement will be fulfilled through
its parent, subsidiary, related, or successor companies or businesses (which will be called
“Affiliates” in this Agreement). Accordingly, Executive acknowledges that the discharge of any
obligation of the Company under this Agreement, which may be through the acts of one or more
Affiliates, discharges any such obligation of the Company. Moreover, the obligations Executive
assumes under this Agreement will be owed to the Company and to its Affiliates. Accordingly, the
parties expressly intend for the Affiliates to be third-party beneficiaries of the promises made
and obligations assumed by Executive in this
Agreement.

3

 

     2. General Duties of Company and Executive.

          2.1. The Company will employ the Executive as its Executive Vice President and Chief Personnel
Officer. The Executive’s authority, duties and responsibilities shall be those assigned by the
Company’s Chief Executive Officer and/or Board of Directors (or a committee thereof) and agreed to
by the Executive. The Executive shall devote reasonable time and attention during normal business
hours to the affairs of the Company and use his best efforts to perform faithfully and efficiently
his duties and responsibilities. The Executive may (a) serve on corporate, civic or charitable
boards or committees, (b) deliver lectures, fulfill speaking engagements or teach at educational
institutions, and (c) manage personal investments, so long as such activities do not significantly
interfere with the performance of the Executive’s duties and responsibilities.

          2.2. The Executive agrees and acknowledges that he owes a fiduciary duty of loyalty, fidelity
and allegiance to act at all times in the best interests of the Company and to do no act and to
make no statement, oral or written, which would injure the Company’s business, its interests or its
reputation, except as may be required by applicable law or regulation. The Executive also agrees
that he shall not knowingly become involved in a conflict of interest with the Company and, upon
discovery of any such conflict, that he will inform the Company of the conflict and will not allow
the conflict to continue.

          2.3. The Executive agrees to comply at all times with all applicable policies, rules and
regulations of the Company, including but not limited to, the Company’s Code of Ethics and the
Company’s policies regarding trading in Common Stock, stock ownership and retention guidelines, and
reimbursement of expenses, as each is in effect from time to time.

     3. Term. The initial “Term” of this Agreement shall be a period of two (2) years, beginning on
the Effective Date and ending on the second anniversary of the Effective Date, and thereafter this
Agreement shall automatically renew for successive one (1) year Terms. Notwithstanding the
foregoing, either party may terminate this Agreement pursuant to Article 5 of this Agreement, in
which case the Term shall end on the Date of Termination specified in the Notice of Termination (or
on the Executive’s date of death if termination is due to the Executive’s death). Neither the
termination of this Agreement nor the consequent end of the Term shall affect the Company’s
obligations under Article 6 of this Agreement or the Executive’s obligations under Articles 7
through 10 of this Agreement (or under Section 2.3 with respect to the Company’s policies regarding
trading in Common Stock) (collectively, “Continuing Obligations”).

     4. Compensation and Benefits.

4

 

          4.1. Base Salary. As compensation for services to the Company during the Term, the Company
shall pay to the Executive until the Date of Termination a base salary at the annual rate of Four
Hundred Forty Six Thousand Dollars ($446,000.00), as of March 1, 2007, or such higher rate as may
be determined from time to time in the discretion of the Board of Directors (or a committee
thereof) (“Base Salary”). Base Salary shall be payable in equal bi-weekly installments or in
accordance with the Company’s established policy, subject only to such payroll and withholding
deductions as may be required by law and other deductions that are either applied generally to
employees of the Company for insurance and other employee benefit plans or which are authorized by
the Executive. For all purposes under this Agreement, the Executive’s Base Salary shall include any
portion thereof which is deferred under any nonqualified plan or arrangement.

          4.2. Annual Incentive Compensation. In addition to Base Salary, the Executive shall be
eligible to be awarded, for each fiscal year during the Term until the Date of Termination,
beginning with the 2006 calendar year, annual cash incentive compensation (either pursuant to an
incentive plan or program of the Company or otherwise) (“Annual Incentive Compensation”) in an
amount to be determined by the Board of Directors (or a committee thereof) in its sole discretion
and specified as a percentage of the Executive’s Base Salary (“Targeted Annual Incentive
Compensation”). The Executive’s actual Annual Incentive Compensation may range from zero percent
(0%) to the maximum percentage of the Executive’s Base Salary permitted by the terms of the
Company’s annual incentive compensation plan(s), as amended from time to time. All such Annual
Incentive Compensation shall be payable at a time to be determined by the Board of Directors (or a
committee thereof) in its sole discretion. For all purposes under this Agreement, the Executive’s
Annual Incentive Compensation shall include any portion thereof which is deferred under any
nonqualified plan or arrangement.

          4.3. Paid Leave. Commencing on the Effective Date and continuing until the Date of
Termination, for each full calendar year in which the Executive is employed under this Agreement,
the Executive shall be entitled to twenty (20) days’ paid leave (“Paid Leave”) during the year
without any reduction in the Compensation to which he is entitled under this Article 4. For any
partial calendar year during which the Executive is employed under this Agreement, he will be
entitled to a prorated amount of this Paid Leave, based on the number of weeks worked in the
calendar year and pursuant to the Company’s then current paid leave policy. For the 2005 calendar
year, the Executive will be eligible for eight (8) days of Paid Leave. Because the Company intends
for this Paid Leave to be used by the Executive, so that he benefits from having time away from his
customary employment duties, the Executive must use the Paid Leave provided under this Section 4.3,
for each calendar year, during the relevant calendar year for which it is provided. If the
Executive does not use all of the Paid Leave to which he is entitled in any calendar year, he will
forfeit this benefit at the end of that calendar year and shall have no right to take more than
twenty (20) days of Paid Leave in the following or any subsequent calendar year or to be otherwise
compensated for not having utilized the Paid Leave.

5

 

          4.4. Automobile Allowance. Commencing on the Effective Date and continuing until the Date of
Termination, the Executive shall receive an automobile allowance of Six Hundred Dollars ($600.00)
per month (“Automobile Allowance”). The Board of Directors (or a committee thereof), in its
discretion, may increase the Automobile Allowance based upon relevant circumstances.

          4.5. Club Membership Dues. Commencing on the Effective Date and continuing until the Date of
Termination, the Executive shall receive an allowance for monthly membership dues (i.e., the
regular membership fee, and not incidental or ancillary charges such as food, beverages, rentals,
coaching, training, supplies, therapy, spa, etc.) for a club or organization of Executive’s choice
in the amount of Six Hundred Dollars ($600.00) per month (“Club Allowance”). The Executive will not
be entitled to this Club Allowance if the Company determines that membership in the relevant club
or organization would violate the letter or spirit of any Company policy.

          4.6. Incentive, Savings, Retirement and Stock Plans. As of the Effective Date, the Executive
shall be granted options to acquire up to One Hundred and Fifty Thousand (150,000) shares of Common
Stock, and Twenty Thousand (20,000) restricted shares of Common Stock, subject to the terms of the
Company’s 1991 Incentive Stock Plan, as amended, and of the instruments evidencing the grants. In
addition, the Executive shall be entitled to participate in and be eligible to receive benefits
under all executive incentive, savings, retirement, deferral, and stock (including any stock
option, restricted stock, restricted stock units, phantom stock and other stock rights and
interests, including derivative interests) plans and programs currently maintained or hereinafter
established by the Company for the benefit of its similarly-situated executive officers
(collectively “Compensation Plans”). The Executive’s participation in the Compensation Plans shall
be governed by the terms and conditions of those plans. Subject to the terms of the Company’s stock
ownership and retention guidelines, as adopted and/or amended by the Board of Directors (or a
committee thereof) from time to time, the Executive is expected to retain fifty percent (50%) of
the shares received upon the exercise of any options or the vesting of any restricted stock (after
netting such shares for the purpose of satisfying the Executive’s income and payroll tax
obligations incurred as the result of any exercise or vesting event), until such time as he has
accumulated stock with a value of at least two and one-half (2.5) times the Executive’s Base
Salary. For purposes of the preceding sentence, “Base Salary” shall be (a) during the first year of
the Term, the Executive’s Base Salary as of the Effective Date, and (b) during each successive year
during the Term, the Executive’s Base Salary as of the first day of such successive Term. The
Executive shall participate in the 2004-2006 and 2005-2007 performance cycles under the Company’s
Long Term Incentive Plan (“LTIP”) on a pro-rated basis (based on the number of full calendar months
remaining in each of the performance cycles as of the Effective Date).

          4.7. Welfare Plans. The Executive shall be eligible to participate in and shall receive all
benefits under each welfare benefit plan of the Company currently maintained or subsequently
established by the Company for the benefit of its similarly-situated executive officers. Such
welfare benefit plans may include medical, dental,

6

 

vision, disability, group life, accidental death and travel accident insurance plans and
programs (collectively “Welfare Plans”). The Executive’s participation in the Welfare Plans shall
be governed by the terms and conditions of those plans.

          4.8. Reimbursement of Expenses. The Executive may from time to time during the Term incur
various business expenses customarily incurred by persons holding positions of like responsibility,
including, without limitation, travel, entertainment and similar expenses incurred for the benefit
of the Company. The Company shall reimburse the Executive for all legitimate expenses incurred on
the Company’s behalf, upon the Company’s receipt of proper documentation for such expenses,
provided that reimbursement of the expenses would not violate the letter or spirit of any Company
policy regarding the reimbursement of such expenses.

          4.9. Relocation Expense Allowance. The Company shall pay the Executive an allowance of Two
Hundred Thousand Dollars ($200,000.00) to assist the Executive in relocating from his current home
in New York to the Phoenix — Scottsdale metropolitan area. This payment will be made in one lump
sum within fifteen (15) business days of the Effective Date.

          4.10. Indemnification and Insurance. At all times during the term of this Agreement, and for
such additional periods as are provided for in this Agreement, the Executive shall be covered under
the Company’s directors’ and officers’ liability insurance, if any, and under a separate Indemnity
Agreement with the Company.

          4.11. Signing Bonus. The Executive will receive a one-time signing bonus in the gross amount
of One Hundred and Fifty Thousand Dollars ($150,000.00). Payment of the signing bonus will be made
to the Executive with thirty (30) days of the Effective Date and will be subject to Federal, State
and local tax withholding. If this Agreement is terminated by the Company for Cause, or by the
Executive Without Good Reason within ninety (90) days of the Effective Date, the Executive shall
repay the signing bonus to the Company.

     5. Termination. This Agreement may be terminated as follows:

          5.1. Death. This Agreement shall terminate automatically upon the death of the Executive.

          5.2. Disability. The Company may terminate this Agreement, upon written notice to the
Executive delivered in accordance with Sections 5.8 and 11.1, upon the Disability of the Executive.

          5.3. Cause. The Company may terminate this Agreement, upon written notice to the Executive
delivered in accordance with Sections 5.8 and 11.1, for Cause. For purposes of this Agreement,
“Cause” means (a) the Executive is convicted of, or pleads guilty or nolo contendere to, (i) a
felony, or (ii) any other crime involving the Company, (b) the Board of Directors makes a
reasonable, good faith determination that

7

 

the Executive has breached any material term of this Agreement, (c) the Board of Directors
makes a reasonable, good faith determination that the Executive has violated any applicable
policies, rules, or regulations of the Company, including but not limited to, the Company’s Code of
Ethics and the Company’s policies regarding trading of Common Stock and reimbursement of expenses,
(d) the Board of Directors determines that the Executive engaged in (i) willful or deliberate
conduct, the result of which exposes the Company to actual or potential financial or other injury,
except as required by applicable law or regulation, (ii) fraud, (iii) misappropriation of tangible
or intangible property or funds of the Company, or (iv) embezzlement of Company funds, (e) the
Board of Directors determines that the Executive (i) willfully or deliberately failed or refused to
perform his assigned duties, except where the performance of such duties would result in the
Executive’s violation of applicable law or regulation, and (ii) failed to cure his nonperformance
within thirty (30) days of receipt of a written notice from the Board of Directors setting forth in
reasonable detail the facts and circumstances of his nonperformance, or (f) the Executive breached
any statutory or common law duty of loyalty to the Company. For purposes of this Section 5.3, a
determination by the Board of Directors is evidenced by a resolution, duly adopted by at least
two-thirds (2/3) of the entire membership of the Board of Directors at a meeting called and held
for the purpose of considering the termination of the Executive’s employment for Cause, at which
the Executive and his representative have the right to attend and address the Board of Directors,
finding that, in the good faith belief of the Board of Directors the Executive engaged in conduct
described in this Section 5.3 and specifying the particulars thereof in reasonable detail. No
determination by the Board of Directors will prevent the Executive from contesting such
determination through arbitration, as provided in Section 11.9 of the Agreement.

          5.4. Without Cause. The Company may terminate this Agreement Without Cause, upon written
notice to the Executive delivered in accordance with Sections 5.8 and 11.1. For purposes of this
Agreement, the Executive will be deemed to have been terminated “Without Cause” if the Executive is
terminated by the Company for any reason other than Cause, Disability, or death.

          5.5. Good Reason. The Executive may terminate this Agreement for Good Reason, upon written
notice to the Company delivered in accordance with Sections 5.8 and 11.1. For purposes of this
Agreement, “Good Reason” means (a) the assignment to the Executive of any duties that are
materially inconsistent with the Executive’s duties or responsibilities as contemplated in this
Agreement, including any duties that would result in the Executive’s violation of applicable law or
regulation, (b) any other action by the Company which results in a material diminishment in the
Executive’s position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities (provided, however, that a temporary diminishment, whether material or
not, due to the Executive’s illness or injury, will not constitute grounds for a termination for
Good Reason by the Executive), (c) any material breach by the Company of any of the provisions of
this Agreement, (d) requiring the Executive to relocate permanently to any office or location,
except in the Phoenix-Scottsdale metropolitan area or any other location to which the majority of
the Company’s executive officers are relocated, without

8

 

his consent, (e) any material reduction, or attempted material reduction, at any time during
the Term, of the Base Salary or in the aggregate of the compensation or benefits described in
Article 4 of this Agreement (provided, however, that any change in the targeted percentage for
purposes of determining the Executive’s Annual Incentive Compensation, any change in the Company’s
reimbursement policies, or any change in any Compensation Plans or Welfare Plans, which affects a
majority of the similarly situated executive officers covered by those policies or plans, shall not
be considered “Good Reason”), or (f) the Company’s failure to comply, or the Company’s preventing
or impeding the Executive from compliance, with any legal obligation which would subject the
Executive to any civil or criminal liability, or which would result in the Executive’s violation of
applicable law or regulation.

          5.6. Without Good Reason. The Executive may terminate this Agreement Without Good Reason, upon
written notice to the Company delivered in accordance with Sections 5.8 and 11.1. For purposes of
this Agreement, the Executive will be deemed to have terminated “Without Good Reason” if the
Executive terminates this Agreement for any reason other than Good Reason or if this Agreement is
terminated due to the Executive’s death or Retirement.

          5.7. Retirement. The Executive may terminate this Agreement upon Retirement, upon written
notice to the Company delivered in accordance with Sections 5.8 and 11.1. For purposes of this
Agreement, “Retirement” means the Executive’s bona fide retirement from the Company, as determined
in good faith by the Board of Directors (or a committee thereof).

          5.8. Notice of Termination. Any termination of this Agreement by the Company for Cause,
Without Cause or as a result of the Executive’s Disability, or by the Executive for Good Reason or
Without Good Reason or upon Retirement shall be communicated by a Notice of Termination to the
other party. A “Notice of Termination” means a written notice which (a) indicates the specific
termination provision in this Agreement relied upon and (b) if the termination is by the Company
for Cause or by the Executive for Good Reason, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated. The Notice of Termination must specify the Date of Termination. In the case
of a termination by the Company for Cause or due to the Executive’s Disability or by the Executive
for Good Reason or due to Retirement, the Date of Termination may be as early as the date notice is
given but no later than thirty (30) calendar days after notice is given, unless otherwise agreed to
in writing by both parties. In the case of a termination by the Company Without Cause or by the
Executive Without Good Reason, the Date of Termination may be as early as fourteen (14) calendar
days after notice is given but no later than sixty (60) calendar days after notice is given, unless
otherwise agreed to by the parties in writing. The Notice of Termination shall also conform with
the provisions of Section 11.1.

     6. Obligations of Company Upon Termination.

9

 

          6.1. Cause, Without Good Reason. If this Agreement is terminated either by the Company for
Cause or by the Executive Without Good Reason, the Company shall pay to the Executive, in a lump
sum cash payment within thirty (30) days after the Date of Termination, the aggregate of (a) any
unpaid portion of the Executive’s Base Salary (as in effect on the Date of Termination) owed as of
the Date of Termination and (b) any accrued but unpaid Paid Leave as of the Date of Termination.
The Company also shall promptly pay or reimburse to the Executive any costs and expenses (and
moving and relocation expenses, if otherwise agreed to by the Company in writing) paid or incurred
by the Executive which would have been payable under Section 4.8 of this Agreement if the
Executive’s employment had not terminated.

          All other obligations of the Company and rights of the Executive hereunder shall terminate
effective as of the Date of Termination; provided, however, that the Executive’s rights under any
Compensation Plan or Welfare Plan shall be governed by the terms and provisions of each such plan
and are not necessarily severed on the Date of Termination.

          6.2. Death or Disability. If this Agreement is terminated as a result of the Executive’s death
or Disability:

                (a) The Company shall pay to the Executive (or to his estate, in the event the Executive is
deceased) the following amounts:

               (1) any unpaid portion of the Executive’s Base Salary (as in effect on the Date of
Termination) owed as of the Date of Termination, any unpaid portion of the Annual Incentive
Compensation previously awarded to the Executive, and any accrued but unpaid Paid Leave as
of the Date of Termination, in a lump sum cash payment within thirty (30) days after the
Date of Termination; and

               (2) an amount equal to two (2) times the sum of the Executive’s Base Salary (as in
effect on the Date of Termination) plus the Executive’s Target Annual Incentive
Compensation for the fiscal year during which the Date of Termination occurs. If the
termination is due to death, this amount will be paid in substantially equal bi-weekly
installments over a two (2) year period following the Executive’s Date of Termination. If
the termination is due to Disability, this amount will be paid in substantially equal
bi-weekly installments beginning as of the first payroll date immediately following the six
(6) month anniversary of the Date of Termination and continuing until the first payroll
date immediately following the two (2) year anniversary of the Date of Termination;
provided, however, that the first payment shall include the amount that would have been
paid prior to the actual first payment date had the first payment date been the first
payroll date immediately following the Date of Termination. The Company may, to the extent
feasible, purchase insurance to cover all or any part of the obligation contemplated in
this paragraph, and the Executive agrees to submit to a physical examination and otherwise
cooperate

10

 

with the Company to facilitate the procurement of such insurance.

          (b) The Company shall, promptly upon submission by the Executive (or his estate) of supporting
documentation, pay or reimburse to the Executive any costs and expenses (including moving and
relocation expenses, if otherwise agreed to by the Company in writing) paid or incurred by the
Executive which would have been payable under Section 4.8 of this Agreement if the Executive’s
employment had not terminated.

          (c) The Company shall continue providing medical, dental, and/or vision coverage to the
Executive and/or the Executive’s spouse and dependents, at least equal to that which would have
been provided to him under Section 4.7 if the Executive’s employment had not terminated, if such
coverage continues to be available to the Company, until the earlier of (1) the date the Executive
becomes eligible for any comparable medical, dental, or vision coverage provided by any other
employer, (2) the date the Executive becomes eligible for Medicare or any similar
government-sponsored or provided health care program (whether or not such coverage is equivalent to
that provided by the Company), or (3) the fifth anniversary of the Executive’s Date of Termination.

          (d) Whenever compensation is payable to the Executive under this Agreement during a period in
which he is partially or totally disabled, and such disability would (except for the provisions of
this Agreement) entitle the Executive to disability income or salary continuation payments from the
Company according to the terms of any plan or program presently maintained or hereafter established
by the Company, the disability income or salary continuation paid to the Executive pursuant to any
such plan or program shall be considered a portion of (and not in addition to) the payment to be
made to the Executive pursuant to this Section 6.2. If disability income is payable directly to the
Executive by an insurance company under the terms of an insurance policy paid for by the Company,
the amounts paid to the Executive by such insurance company shall be considered a portion of the
payment (and not in addition to the payment) to be made to the Executive pursuant to this 

Section
6.2.

          (e) The Executive (or the Executive’s estate, as the case may be) shall continue to vest and,
if applicable, continue to be permitted to exercise, all of the rights and interests awarded to the
Executive under the Company’s stock plans, as if the Executive were still employed by the Company,
for a period of two (2) years following the Date of Termination (or, if less, for the remainder of
the stated terms of the rights or interests). Notwithstanding any contrary provision of the LTIP,
the Executive’s Awards for the Performance Cycles (as defined in the LTIP) in effect as of the Date
of Termination shall be prorated in the manner described in Section 8(a) of the LTIP.

          (f) The Executive (or the Executive’s estate, as the case may be) shall continue to be covered
under the Company’s directors’ and officers’ liability insurance, if any, and under his separate
Indemnity Agreement with the Company, as if the Executive’s employment had not terminated, for a
period of ten (10) years following

11

 

his Date of Termination (or, in the case of the Indemnity Agreement, for such longer term as
may be provided for in the Indemnity Agreement).

               (g) All other obligations of the Company and rights of the Executive hereunder shall terminate
effective as of the Date of Termination; provided, however, that except as otherwise specifically
modified by the terms of this Agreement the Executive’s rights under the Compensation Plans and
Welfare Plans shall be governed by the terms and provisions of those Plans and are not necessarily
severed on the Date of Termination.

          6.3. Good Reason; Without Cause. If this Agreement is terminated either by the Executive for
Good Reason or by the Company Without Cause (other than in connection with a Change in Control as
described in Section 6.5):

               (a) The Company shall pay to the Executive the following amounts:

                    (1) any unpaid portion of the Executive’s Base Salary (as in effect on the Date of
Termination) owed as of the Date of Termination, any unpaid portion of the Annual Incentive
Compensation previously awarded to the Executive, and any accrued but unpaid Paid Leave as
of the Date of Termination, in a lump sum cash payment within thirty (30) days after the
Date of Termination; and

                    (2) an amount equal to two (2) times the sum of the Executive’s Base Salary (as in
effect on the Date of Termination) plus the Executive’s Target Annual Incentive
Compensation for the fiscal year during which the Date of Termination occurs, in
substantially equal bi-weekly installments beginning as of the first payroll date
immediately following the six (6) month anniversary of the Date of Termination and
continuing until the first payroll date immediately following the two (2) year anniversary
of the Date of Termination; provided, however, that the first payment shall include the
amount that would have been paid prior to the actual first payment date had the first
payment date been the first payroll date immediately following the Date of Termination.

               (b) The Company shall promptly pay or reimburse to the Executive any costs and expenses
(including moving and relocation expenses, if otherwise agreed to by the Company in writing) paid
or incurred by the Executive which would have been payable under Section 4.8 of this Agreement if
the Executive’s employment had not terminated.

               (c) The Company shall continue providing medical, dental, and/or vision coverage to the
Executive and/or the Executive’s spouse and dependents, at least equal to that which would have
been provided to the Executive under Section 4.7 if the Executive’s employment had not terminated,
until the earlier of (1) the date the

12

 

Executive becomes eligible for any comparable medical, dental, or vision coverage provided by
any other employer, (2) the date the Executive becomes eligible for Medicare or any similar
government-sponsored or provided health care program (whether or not such coverage is equivalent to
that provided by the Company), or (3) the fifth (5th) anniversary of the Executive’s
Date of Termination.

          (d) The Executive (or the Executive’s estate, as the case may be) shall continue to vest and,
if applicable, continue to be permitted to exercise, all of the rights and interests awarded to the
Executive under the Company’s stock plans, as if the Executive were still employed by the Company,
for a period of two (2) years following the Date of Termination (or, if less, for the remainder of
the stated terms of the rights and interests). Notwithstanding any contrary provision of the LTIP,
the Executive’s Awards for the Performance Cycles (as defined in the LTIP) in effect as of the Date
of Termination shall be prorated in the manner described in Section 8(a) of the LTIP.

          (e) The Executive shall continue to be covered under the Company’s directors’ and officers’
liability insurance, if any, and under his separate Indemnity Agreement with the Company, as if the
Executive’s employment had not terminated, for a period of ten (10) years following his Date of
Termination (or, in the case of the Indemnity Agreement, for such longer term as may be provided
for in the Indemnity Agreement).

          (f) The Company shall (through an agency of Company’s choosing) provide outplacement services
to the Executive for a period of one (1) year following the Date of Termination, provided that the
cost of such services shall not exceed $50,000 or such higher amount as may be approved by the
Board of Directors (or a committee thereof).

          (g) All other obligations of the Company and rights of the Executive hereunder shall terminate
effective as of the Date of Termination; provided, however, that except as otherwise specifically
modified by the terms of this Agreement the Executive’s rights under the Compensation Plans and
Welfare Plans shall be governed by the terms and provisions of these Plans and are not necessarily
severed on the Date of Termination.

     6.4. Retirement. If this Agreement is terminated by the Executive due to Retirement:

          (a) The Company shall pay to the Executive, in a lump sum cash payment within thirty (30) days
after the Date of Termination, the aggregate of the following amounts: (1) any unpaid portion of
the Executive’s Base Salary (as in effect on the Date of Termination) owed as of the Date of
Termination; (2) any unpaid portion of the Annual Incentive Compensation previously awarded to the
Executive; and (3) any accrued but unpaid Paid Leave as of the Date of Termination.

          (b) The Company shall promptly pay or reimburse to the

13

 

Executive any costs and expenses (including moving and relocation expenses, if otherwise
agreed to by the Company in writing) paid or incurred by the Executive which would have been
payable under Section 4.8 of this Agreement if the Executive’s employment had not terminated.

          (c) The Company shall continue providing medical, dental, and/or vision coverage to the
Executive and/or the Executive’s family, at least equal to that which would have been provided to
the Executive under Section 4.7 if the Executive’s employment had not terminated, until the earlier
of (1) the date the Executive becomes eligible for any comparable medical, dental, or vision
coverage provided by any other employer, or (2) the date the Executive becomes eligible for
Medicare or any similar government-sponsored or provided health care program (whether or not such
coverage is equivalent to that provided by the Company). Following the date on which the Executive
becomes eligible for coverage under Medicare, the Executive may, at his election, continue to be
covered under the Company’s health coverage, if available, provided that the Executive pays all
applicable premiums charged by the Company or its third-party provider(s).

          (d) The Company shall pay to the Executive retirement payments, as provided below:

               (1) If, as of the Date of Termination, the Executive has completed at least ten (10)
years of service with the Company, the Executive is entitled to retirement payments for
each year during the ten (10) year payment period equal to the product of sixty percent
(60%) of the Executive’s average Base Salary during the three (3) consecutive full calendar
years of employment immediately preceding the Date of Termination. For purposes of this
Section 6.4(d), years of service include all twelve (12) consecutive month periods of
employment with the Company, beginning with the Executive’s initial date of employment with
the Company. Payments shall commence on the first payroll date immediately
following the six (6) month anniversary of the Date of Termination and shall continue until
the first payroll date immediately following the ten (10) year anniversary of the Date of
Termination (“Payment Period”). Payments shall be made each payroll date during the Payment
Period in substantially equal installments; provided, however, that the first payment shall
include the amount that would have been paid prior to the actual first payment date had the
first payment date been the first payroll date immediately following the Date of
Termination.

               (2) In the event of the Executive’s death prior to the payment of all of the
retirement payments determined under this Section 6.4(d), the balance of the payments shall
be made to the Executive’s surviving spouse, if any, or to any other beneficiary named by
the Executive in writing at the same time as such payments would have been made to the
Executive.

               (3) In addition to the cessation provisions set forth in

14

 

Section 6.7, any remaining retirement payments shall immediately cease in the event
the Executive works for a competitor (as determined by the Company in its sole discretion)
or becomes employed by any other employer without the prior written consent of the Company.
Notwithstanding the foregoing, with the prior written consent of the Company, the Executive
may be employed by an entity which is not deemed by the Company to be in competition with
the Company, in a capacity in which the economic value of his total compensation is
comparable to his total compensation while employed by the Company, and receive retirement
benefits which are reduced proportionately by the compensation received by the Executive in
the new position. Also with the prior written consent of the Company, the Executive may be
employed by an entity which is not deemed by the Company to be in competition with the
Company, in a capacity in which his total compensation is materially less than his total
compensation while employed by the Company, in which case there would be no reduction in
retirement benefits.

          (e) The Executive (or the Executive’s estate, as the case may be) shall continue to vest and,
if applicable, continue to be permitted to exercise, all of the rights and interests awarded to the
Executive under the Company’s stock plans, for a period of two (2) years following the Date of
Termination (or, if less, for the remainder of the stated terms of the rights and interests).

          (f) The Executive shall continue to be covered under the Company’s directors’ and officers’
liability insurance, if any, and under his separate Indemnity Agreement with the Company, as if the
Executive’s employment had not terminated, for a period of ten (10) years following his Date of
Termination (or, in the case of the Indemnity Agreement, for such longer term as may be provided
for in the Indemnity Agreement).

          (g) All other obligations of the Company and rights of the Executive hereunder shall terminate
effective as of the Date of Termination; provided, however, that except as otherwise specifically
modified by the terms of this Agreement the Executive’s rights under the Compensation Plans and
Welfare Plans shall be governed by the terms and provisions of these Plans and are not necessarily
severed on the Date of Termination.

          (h) The payments and benefits provided under this Section 6.4 shall be in lieu of any payments
to which the Executive (or his family) may have otherwise been entitled under the terms of Section
6.2, 6.3 or 6.5, and vice versa.

     6.5. Change in Control. If this Agreement is terminated either by the Executive for Good
Reason or by the Company Without Cause, and the termination occurs within the six (6) month period
preceding, or the twelve (12) month period following, the date on which the Change in Control
occurs (“Change in Control Date”):

          (a) As reasonable compensation for services rendered by the

15

 

Executive to the Company prior to the Date of Termination, the Company shall pay to the
Executive the following amounts:

               (1) in a lump sum cash payment within thirty (30) days after the later to occur of the
Change in Control Date or the Date of Termination, any unpaid portion of the Executive’s
Base Salary (as in effect on the Date of Termination) owed as of the Date of Termination,
any unpaid portion of the Annual Incentive Compensation previously awarded to the
Executive, and any accrued but unpaid Paid Leave as of the Date of Termination; and

               (2) in a lump sum cash payment within thirty (30) days after the later to occur of the
Change in Control Date or the six (6) month anniversary of the Date of Termination, an
amount equal to three (3) times the sum of the Executive’s Base Salary (as in effect on the
Date of Termination) plus the Executive’s Target Annual Incentive Compensation for the
fiscal year during which the Date of Termination occurs.

          (b) The Company shall promptly pay or reimburse to the Executive any costs and expenses
(including moving and relocation expenses, if otherwise agreed to by the Company in writing) paid
or incurred by the Executive which would have been payable under Section 4.8 of this Agreement if
the Executive’s employment had not terminated.

          (c) The Company shall continue providing medical, dental, and/or vision coverage to the
Executive and/or the Executive’s family, at least equal to that which would have been provided to
the Executive under Section 4.7 if the Executive’s employment had not terminated, until the earlier
of (1) the date the Executive becomes eligible for any comparable medical, dental, or vision
coverage provided by any other employer, or (2) the date the Executive becomes eligible for
Medicare or any similar government-sponsored or provided health care program (whether or not such
coverage is equivalent to that provided by the Company).

          (d) As reasonable compensation for services provided by the Executive to the Company prior to
the Date of Termination, the Company shall (through an agency of Company’s choosing) provide
outplacement services to the Executive for a period of one (1) year following the later of the Date
of Termination or the Change in Control Date, provided that the cost of such services shall not
exceed $50,000 or such higher amount as may be approved by the Board of Directors (or a committee
thereof).

          (e) The Executive (or the Executive’s estate, as the case may be) shall become fully and
immediately vested as of the later of the Date of Termination or the Change in Control Date and, if
applicable, continue to be permitted to exercise, all of the rights and interests awarded to the
Executive under the Company’s stock plans, as if the Executive were still employed by the Company,
for a period of two (2) years following the later of the Date of Termination or the Change in
Control Date (or, if less, for the remainder of the stated terms of the rights and interests).

16

 

          (f) The Executive shall continue to be covered under the Company’s directors’ and officers’
liability insurance, if any, and under his separate Indemnity Agreement with the Company, as if the
Executive’s employment had not terminated, for a period of ten (10) years following his Date of
Termination (or, in the case of the Indemnity Agreement, for such longer term as may be provided
for in the Indemnity Agreement).

          (g) All other obligations of the Company and rights of the Executive hereunder shall terminate
effective as of the Date of Termination; provided, however, that except as otherwise specifically
modified by the terms of this Agreement the Executive’s rights under the Compensation Plans and
Welfare Plans shall be governed by the terms and provisions of these Plans and are not necessarily
severed on the Date of Termination.

          (h) In the event the Change in Control Date occurs subsequent to the Executive’s Date of
Termination, the payments and benefits provided under this Section 6.5 shall be reduced by and to
the extent of any payments and benefits previously paid or provided to the Executive under Section
6.3, and in no event shall the Executive or his family be entitled to any duplicate payments or
benefits.

     6.6. Change in Control Gross-Up Payments.

          (a) In the event that (1) any payment or benefits provided for under this Agreement and/or any
other arrangement or agreement with the Company in connection with a Change in Control (“Change in
Control Payment”) would subject the Executive to the excise tax imposed by Code Section 4999 (“Cash
Termination Excise Tax”) and (2) the Change in Control Payment is less than 110% of the sum of
three (3) times the “base amount” (as defined in Code Section 280G) minus $1.00 (“Safe Harbor
Amount”), then any amounts payable under this Agreement shall be reduced so that the Change in
Control Payment, in the aggregate, is reduced to the Safe Harbor Amount. The reduction of the
amounts payable under this Agreement shall be made by first reducing the cash payments payable
under this Agreement (other than Unrestricted Payments), unless an alternative method of reduction
is agreed to by the Company and the Executive. No reduction shall occur if the Change in Control
Payment is 110% (or more) of the Safe Harbor Amount.

          (b) In the event that (1) there is a Change in Control Payment which would subject the
Executive to the Cash Termination Excise Tax and is not subject to reduction under Section 6.6(a)
and (2) the closing stock price of the Company on the date of the Change in Control equals or
exceeds the Threshold Share Price, then the Executive shall be entitled to receive the payment
described in Section 6.6(c) below.

          (c) If the requirements of Section 6.6(b) are met, the Executive shall be entitled to receive
an additional payment (a “Gross-Up Payment”) such that the net amount retained by the Executive,
after deduction of any excise tax on the

17

 

Executive’s Change in Control Payment, as determined for purposes of Code Section 280G, and
any federal, state, and local income and employment taxes and excise tax upon the Gross-Up Payment,
shall be equal to the Change in Control Payment; provided, however, that in determining the amount
of the Gross-Up Payment to which the Executive is entitled under this Section, the Gross-Up Payment
(1) shall be capped at 250% of the “base amount” (as defined in Code Section 280G), and (2) shall
not include any amounts payable to the Executive under the Allied Waste Industries, Inc.
Supplemental Executive Retirement Plan. The Gross-Up Payment, if any, shall be paid to the
Executive, or, at the discretion of the Company, to governmental authorities on the Executive’s
behalf, as soon as practicable following the determination of the Change in Control Payment, but,
in any event, not later than five (5) business days immediately following the payment of the
Executive’s Change in Control Payment.

          (d) Subject to the provisions of Section 6.6(e), all determinations required to be made under
this Section 6.6, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be
made by tax counsel appointed by the Company (the “Tax Counsel”). All fees and expenses of the Tax
Counsel shall be borne solely by the Company. As a result of the uncertainty in the application of
Code Section 4999 at the time of the initial determination by the Tax Counsel hereunder, it is
possible that Gross-Up Payments, which will not have been made by the Company, should have been
made (“Underpayment”). In the event that it is ultimately determined in accordance with the
procedures set forth in Section 6.6(e) that the Executive is required to make a payment of any
excise tax, the Tax Counsel shall determine the amount of the Underpayment that has occurred, and
any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive.

          (e) The Executive shall notify the Company in writing of any claims by the Internal Revenue
Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such
notification shall be given as soon as practicable but no later than thirty (30) days after the
Executive actually receives notice in writing of such claim and shall apprise the Company of the
nature of such claim and the date on which such claim is requested to be paid. The Executive shall
not pay such claim prior to the expiration of the 30-day period following the date on which he
gives such notice to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to
the expiration of such period that it desires to contest such claim, the Executive shall:

               (1) give the Company any information reasonably requested by the Company relating to
such claim;

               (2) take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such

18

 

claim by an attorney selected by the Company and reasonably acceptable to the
Executive;

               (3) cooperate with the Company in good faith in order to effectively contest such
claim; and

               (4) if the Company elects not to assume and control the defense of such claim, permit
the Company to participate in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and shall indemnify and
hold the Executive harmless, on an after-tax basis, for any excise tax or income tax (including
interest and penalties with respect thereto) imposed as a result of such representation and payment
of costs and expenses. Without limitation on the foregoing provisions of this Section 6.6(e), the
Company shall have the right, at its sole option, to assume the defense of and control all
proceedings in connection with such contest, in which case it may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in respect
of such claim and may either direct the Executive to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to
a determination before any administrative tribunal, in a court of initial jurisdiction and in one
or more appellate courts, as the Company shall determine; provided, however, that if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount
of such payment to the Executive, on an interest-free basis, and shall indemnify and hold the
Executive harmless, on an after-tax basis, from any excise tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and further provided, that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive with respect to
which such contested amount is claimed to be due is limited solely to such contested amount.

Furthermore, the Company’s right to assume the defense of and control the contest shall be limited
to issues with respect to which a Gross-Up Payment would be payable hereunder, and the Executive
shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

          (f) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
Section 6.6(e), the Executive becomes entitled to receive any refund with respect to such claim,
the Executive shall (subject to the Company’s complying with the requirements of Section 6.6(e))
promptly pay to the Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 6.6(e), a determination is made that the Executive
shall not be entitled to any refund with respect to such claim, and the Company does not notify the
Executive in writing of its intent to contest such denial of refund prior to the expiration of

19

 

thirty (30) days after such determination, then such advance shall be forgiven and shall not
be required to be repaid, and the amount of such advance shall offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid.

     6.7. Payments Contingent on Executive’s Release of Company, Compliance with Continuing
Obligations, and Certain Other Contingencies. All of the payments and benefits to which the
Executive would otherwise be entitled under Sections 6.2, 6.3, 6.4, 6.5, or 6.6, except the
Unrestricted Payments, shall be contingent on (a) the Executive’s delivery to the Company of a
signed and enforceable release of all claims against the Company, in a form specified by the
Company, except that no such release shall be required in the event that the Company fails to
tender such release to the Executive for his signature within thirty (30) days of his Date of
Termination, and (b) the Executive’s compliance with the Continuing Obligations. In addition, if
the Executive fails to comply with the Continuing Obligations, then the Company shall have the
right, upon notice to the Executive (describing such failure to comply in reasonable detail) to
terminate all of the payments and benefits described in the preceding sentence, other than the
Unrestricted Payments, and to recover from the Executive (i) any and all payments made or benefits
paid to or for the benefit of the Executive, other than the Unrestricted Payments, that the Company
paid to or for the benefit of the Executive or to which the Executive otherwise would not have been
entitled if the Company had terminated the Executive for Cause as of the date of termination of
this Agreement, and (ii) any and all proceeds realized by the Executive subsequent to the date of
termination of this Agreement upon vesting, exercise, or sale of Common Stock granted or issued to
the Executive under the Company’s Compensation Plans. Furthermore, if the Company becomes aware,
subsequent to the Date of Termination, that the Executive was engaged in conduct during the Term
that, had the Company been aware of such conduct, would have permitted the Company to terminate
this Agreement during the Term for Cause, then the Company shall have the right, upon notice to the
Executive (describing such conduct in reasonable detail), (A) to terminate all payments and
benefits, other than the Unrestricted Payments, then remaining payable to or for the benefit of the
Executive under Sections 6.2, 6.3, 6.4, 6.5, or 6.6 (including but not limited to continued vesting
or payment of any unvested or unexercised awards under the Company’s Compensation Plans), and (B)
to recover from the Executive (1) any and all payments made or benefits paid to or for the benefit
of the Executive, including all or any portion of the Unrestricted Payments, that the Company would
not have been obligated to pay to or for the benefit of the Executive or to which the Executive
otherwise would not have been entitled if the Company had terminated the Executive for Cause as a
result of such conduct at or promptly after the time on which such conduct first occurred, and (2)
any and all proceeds realized by the Executive subsequent to the date on which such conduct first
occurred upon vesting, exercise, or sale of Common Stock granted or issued to the Executive under
the Company’s Compensation Plans. The Executive shall repay to the Company all amounts due under
the preceding sentences promptly upon demand for such payment by the Company.

     7. Executive’s Confidentiality Obligation.

20

 

     7.1. The Executive hereby acknowledges, understands and agrees that all Confidential
Information is the exclusive and confidential property of the Company and its Affiliates which
shall at all times be regarded, treated and protected as such in accordance with this Article 7.
The Executive acknowledges that all such Confidential Information is in the nature of a trade
secret.

     7.2. For purposes of this Agreement, “Confidential Information” means information, not
generally known to the public, that is used in the business of the Company and (a) is proprietary
to, about or created by the Company, (b) gives the Company some competitive business advantage or
the opportunity of obtaining such advantage or the disclosure of which is likely to be detrimental
to the interests of the Company, (c) is designated as Confidential Information by the Company, is
known by the Executive to be considered confidential by the Company, or from all the relevant
circumstances should reasonably be assumed by the Executive to be confidential and proprietary to
the Company, or (d) is not generally known by non-Company personnel. Such Confidential Information
includes, without limitation, the following types of information and other information of a similar
nature (whether or not reduced to writing or designed as confidential):

          (a) Internal personnel and financial information of the Company, information about vendors
that is not generally known but is known to the Company as a result of the Company’s relationship
with the vendor (including vendor characteristics, services, prices, lists and agreements),
purchasing and internal cost information, internal service and operational manuals, and the manner
and methods of conducting the business of the Company;

          (b) Marketing and development plans, price and cost data, price and fee amounts, pricing and
billing policies, quoting procedures, marketing techniques, forecasts and forecast assumptions and
volumes, and future plans and potential strategies (including, without limitation, all information
relating to any acquisition prospect and the identity of any key contact within the organization of
any acquisition prospect) of the Company which have been or are being discussed;

          (c) Names of customers and their representatives, contracts (including their contents and
parties), customer services, and the type, quantity, specifications and content of products and
services purchased, leased, licensed or received by customers of the Company;

          (d) Confidential and proprietary information provided to the Company by any actual or
potential customer, government agency or other third party (including businesses, consultants and
other entities and individuals);

          (e) Any non-public information about the Company’s landfill development plans, landfill
capacity, and the status of the permitting process with respect to any aspect of the Company’s
business; and

21

 

                (f) Any non-public information about the existence or status of any governmental
investigation, charge, or lawsuit, the status or the position of the Company regarding the value of
any claim or charge (whether filed by the government or a third party), the Company’s interest in
resolving any such claim or charge; or any non-public information regarding the Company’s
compliance with federal, state or local laws.

          7.3. As a consequence of the Executive’s acquisition or anticipated acquisition of
Confidential Information, the Executive shall occupy a position of trust and confidence with
respect to the affairs and business of the Company. In view of the foregoing, and of the
consideration to be provided to the Executive, the Executive agrees that it is reasonable and
necessary that the Executive make each of the following covenants:

               (a) At any time during the Term and thereafter, the Executive shall not disclose Confidential
Information to any person or entity, either inside or outside of the Company, other than as
necessary in carrying out his duties and responsibilities as set forth in Article 2, without first
obtaining the Company’s prior written consent, unless such disclosure is required by applicable law
or regulation;

                (b) At any time during the Term and thereafter, the Executive shall not use, copy or transfer
Confidential Information other than as necessary in carrying out his duties and responsibilities as
set forth in Article 2, without first obtaining the Company’s prior written consent, except as
required by applicable law or regulation; and

                (c) On the Date of Termination, the Executive shall promptly deliver to the Company (or its
designee) all written materials, records and documents made by the Executive or which came into his
possession prior to or during the Term concerning the business or affairs of the Company,
including, without limitation, all materials containing Confidential Information.

          7.4. The Executive acknowledges and agrees that the use of the term “Company” in this Article
7 means both the Company and its Affiliates.

     8. Disclosure of Information, Ideas, Concepts, Improvements, Discoveries and Inventions.
Consistent with the Executive’s fiduciary duties to the Company, the Executive agrees that during
his employment by the Company, the Executive shall promptly disclose in writing to the Company all
information, ideas, concepts, improvements, discoveries and inventions, which are conceived,
developed, made or acquired by the Executive, either individually or jointly with others, and which
relate to the business, products or services of the Company, irrespective of whether the Executive
used the Company’s time or facilities and irrespective of whether such information, idea, concept,
improvement, discovery or invention was conceived, developed, discovered or acquired by the
Executive on the job, at home, or elsewhere. This obligation extends to all types of information,
ideas and concepts, including, information, ideas and concepts relating to new types of services,
corporate opportunities,

22

 

acquisition prospects, the identity of key representatives within acquisition prospect
organizations, prospective trade names or service marks for the Company’s business activities, and
the like. The Executive acknowledges and agrees that the use of the term “Company” in this Article
8 means both the Company and its Affiliates.

     9. Ownership of Information, Ideas, Concepts, Improvements, Discoveries and all Original Works
of Authorship.

          9.1. All information, ideas, concepts, improvements, and discoveries which are conceived,
made, developed or acquired by the Executive or which are disclosed or made known to the Executive,
individually or in conjunction with others, during the Executive’s employment by the Company and
which relate to the business, products or services of the Company (including, without limitation,
all such information relating to corporate opportunities, research, financial and sales data,
pricing and trading terms, evaluations, opinions, interpretations, acquisition prospects, the
identity of customers or their requirements, the identity of key contacts within the customers’
organizations or within the organization of acquisition prospects, marketing and merchandising
techniques, and prospective names and service marks) are and shall be the sole and exclusive
property of the Company. Furthermore, all drawings, memoranda, notes, records, files,
correspondence, manuals, models, specifications, computer programs, maps and all other writings or
materials of any type embodying any of such information, ideas, concepts, improvements, and
discoveries are and shall be the sole and exclusive property of the Company.

          9.2. In particular, the Executive hereby specifically sells, assigns, transfers and conveys to
the Company all of his worldwide right, title and interest in and to all such information, ideas,
concepts, improvements, and discoveries, and any United States or foreign applications therefore.
The Executive shall assist the Company and its nominee at all times and in all manners, during the
Term and thereafter, in the protection of such information, ideas, concepts, improvements, or
discoveries.

          9.3. In the event the Executive individually, or jointly with others, creates, during the Term
(whether the initial or any successive Term), any original work of authorship fixed in any tangible
medium of expression which is the subject matter of copyright (such as videotapes, written
presentations on acquisitions, computer programs, drawings, maps, architectural renditions, models,
manuals, brochures or the like) relating to the Company’s business products or services, the
Company shall be deemed the author of such work if the work is prepared by the Executive within the
scope of his employment; or, if the work is not prepared by the Executive within the scope of his
employment but is specially ordered by the Company as a contribution to a collective work, as a
part of a motion picture or other audiovisual work, as a translation, as a supplementary work, as a
compilation or as an instructional text, then the work shall be considered to be a work made for
hire, and the Company shall be the author of such work. If such work is neither prepared by the
Executive within the scope of his employment nor a work specially ordered and deemed to be a work
made for hire, then the Executive hereby agrees to sell, transfer, assign and convey, and by these
presents,

23

 

does sell, transfer, assign and convey, to the Company all of the Executive’s worldwide right,
title and interest in and to such work and all rights of copyright therein. The Executive agrees to
assist the Company, at all times, during the Term and thereafter, in the protection of the
Company’s worldwide right, title and interest in and to such work and all rights of copyright
therein, which assistance shall include, but shall not be limited to, the execution of all
documents requested by the Company or its nominee and the execution of all lawful oaths and
applications for registration of copyright in the United States and foreign countries.

          9.4. The Executive acknowledges and agrees that the use of the term “Company” in this Article
9 means both the Company and its Affiliates.

     10. Executive’s Non-Competition and Non-Solicitation Obligations.

          10.1. For purposes of this Article 10:

                (a) “Company” means both the Company and its Affiliates.

                (b) “Competitor” means any company that provides Non-hazardous Solid Waste Management services
in any state in which the Company does business. “Principal Competitor” means Waste Management,
Inc., Republic Services, Inc., Capital Environmental Resource, Inc., Onyx Waste Services
Incorporated, Waste Industries USA, Inc., Waste Connections, Inc., or Casella Waste Systems, Inc.
(or their predecessors and successors, subsidiaries, or affiliate operations), or any other public
or private business (including their predecessors and successors, subsidiaries, or affiliate
operations) conducting Non-hazardous Solid Waste Management in three (3) or more states in which
the Company does business.

                (c) For purposes of Article 10, “Rendering Services” means performing any kind of services or
duties related to Non-hazardous Solid Waste Management, including performing any functions that are
the same as, or substantially similar to, the duties the Executive performed under Article 2 of
this Agreement, whether done directly or through others, whether done in person or through
telephonic, electronic, or some other means of communication, and whether done as a principal,
director, officer, agent, employee, contractor or consultant.

                (d) “Contact” means any direct or indirect interaction between the Executive and any customer,
potential customer or acquisition prospect which takes place in an effort to further a business
relationship, whether done directly or through others, whether in person or through telephonic,
electronic, or some other means of communication, and whether done as a principal, director,
officer, agent, employee, contractor or consultant.

               (e) “Non-hazardous Solid Waste Management” means the collection, hauling, disposal or
recycling of non-hazardous refuse.

24

 

                (f) “Facility” means any office, transfer station, hauling operation, landfill, or recycling
center of the Company.

          10.2. Prohibition on Competition and Solicitation During Employment.

                (a) At no time during the Term (whether the initial or any successive Term) will the
Executive, directly or indirectly, provide service as a principal, director, officer, agent,
employee, consultant or contractor in or to any business that conducts Non-hazardous Solid Waste
Management operations or provides portable toilet, street sweeping or any other services that the
Company provides.

                (b) At no time during the Term (whether the initial or any successive Term) will the Executive
directly or indirectly (1) induce, entice or solicit any employee of the Company to leave his or
her employment, (2) Contact, communicate or solicit any customer, potential customer, or
acquisition prospect of the Company for the purpose of ending or avoiding a business relationship,
or (3) use any information regarding actual or potential customers or acquisition targets of the
Company for any purpose other than in performing his duties under this Agreement.

          10.3. Prohibition Against Competition After Employment.

               (a) The Executive agrees that, after the Date of Termination, he will not compete with the
Company to the extent, and subject to the express limitations, provided in this Section 10.3. At no
time during the Term will the Executive, directly or indirectly, provide service as a principal,
director, officer, agent, employee, consultant or contractor in or to any business that conducts
Non-hazardous Solid Waste Management operations or provides portable toilet, street sweeping or any
other services that the Company provides.

               (b) The Executive’s obligation not to compete with the Company will end two (2) years after
the Date of Termination. If a court concludes that two (2) years is an unreasonable time for that
obligation, the Executive’s obligation to not compete with the Company will end one (1) year after
the Date of Termination.

                (c) During the Executive’s employment as Executive Vice President and Chief Personnel Officer,
he will be active in all significant management and operational issues and will possess
Confidential Information regarding the Company’s operations across the nation, not just in any
particular geographic area around where his office is or will be located. Thus, the scope of
Executive’s obligation to not compete with the Company cannot reasonably be limited to a particular
geographic area. Executive’s employment with any business that provides Non-hazardous Solid Waste
Management services, regardless of location, is likely to harm the Company’s business interests.
Accordingly, Executive agrees that he will not Render Services to any Competitor or any Principal
Competitor that are: (i) rendered in a state in which the Company does business; or (ii) directed
at achieving, or intended to achieve, a result in any such state.

25

 

                (d) The parties acknowledge that they have chosen Arizona law to apply to this Agreement (see
Section 11.6) and that Arizona courts have not addressed under what circumstances, and to what
extent, restrictive covenants that apply to a multi-state area are enforceable. Thus, the parties
wish to include Section 10.3(d) as a back-up to the restrictions in Section 10.3(c) in the event a
court concludes that those restrictions are not reasonably limited and severs the applicable
portions of Section 10.3(c) under Arizona’s “blue pencil” rule. Accordingly, Executive will not
Render Services to any Competitor or Principal Competitor that are: (i) rendered within forty (40)
miles of any Facility; or (ii) directed at achieving, or intended to achieve, a result within forty
(40) miles of any Facility. Executive acknowledges that the restrictions in this Section 10.3(d)
are separate and apart from the restrictions in Section 10.3(c) above.

                (e) Additionally, Executive will not Render Services to any business providing portable toilet
street sweeping or other services within forty (40) miles of any Facility at which the same or
similar services are provided.

                (f) The non-compete restrictions in this Section 10.3 are expressly intended to preclude the
Executive from physically working in a geographic area that is not covered by the applicable
restriction (i.e., working in a state in which the Company is not conducting business) but where
the Executive’s responsibilities would include any management, oversight or analysis of a business
unit in a geographic area covered by the applicable restriction.

          10.4. Prohibition Against Solicitation After Employment.

                (a) The Executive agrees that, after the Date of Termination, he will limit his activities
relating to the customers, potential customers, acquisition prospects, and employees of the Company
to the extent, and subject to the express limitations, provided in this Section 10.4.

                (b) The Executive’s obligations under this Section 10.4 will end two (2) years after the Date
of Termination. If a court concludes that two (2) years is an unreasonable time for those
obligations, Executive’s obligations under this Section 10.4 will end one (1) year after the Date
of Termination.

                (c) The Executive will not Contact customers, potential customers, or acquisition prospects of
the Company for any purpose related to providing Non-hazardous Solid Waste Management services in
any state in which the Company does business. In the event a court concludes that this particular
restriction is not reasonably limited, the Executive will not Contact customers, potential
customers or acquisition prospects of the Company for any purpose related to providing
Non-hazardous Solid Waste Management services within forty (40) miles of any Facility.

                (d) Additionally, the Executive will not Contact customers, potential customers or acquisition
prospects of the Company for any purpose related to

26

 

providing portable toilet, street sweeping or other services within forty (40) miles of any
Facility at which the same or similar services are provided.

                (e) The Executive will not solicit any employee or consultant of the Company to work for any
other person or to leave his or her employment. The Executive will not, directly or indirectly, be
involved in the recruiting and/or hiring (whether that involvement is in the nature of serving as a
reference or as a decision-maker) of any person employed or retained as a consultant by the
Company.

               (f) In the event a court concludes that the restrictions in Section 10.4(e) are not reasonably
limited, Executive will not: (i) solicit any employee or consultant of the Company who, directly or
indirectly, reported to Executive at any time during the Term, where the solicitation is to
encourage the employee or consultant to work for any other person or entity, or to leave his or her
employment; or (ii) be involved in the recruiting and/or hiring (whether that involvement is in the
nature of serving as a reference or as a decision-maker) of any such employee or consultant.

          10.5. Other Provisions.

                (a) The Executive acknowledges and agrees that a violation of the promises he has made under
this Article 10 is likely to cause irreparable harm to the Company and justify the grant of
injunctive relief. Additionally, to provide the Company with the protections it has bargained for
in this Article 10, any period of time in which the Executive has been in breach of the provisions
in this Article 10 will extend, by that amount of time, the time for which he should be precluded
from further breaching the promises made in this Article 10, provided that the Company does not
unreasonably delay in bringing appropriate legal action after discovery of any such breach by
Executive.

                (b) If the applicable temporal or geographic limitations agreed to by the parties in this
Article 10 are found by a court to be overly broad, the parties expressly authorize the judge
before whom any dispute is brought to impose the broadest temporal and geographic limitations
permissible under the law, so as to effectuate the parties’ intent and ensure that the Company
obtains the protections it sought and for which it provided material consideration in this
Agreement.

     11. Miscellaneous.

          11.1. Notices. All notices and other communications required or permitted under this Agreement
shall be in writing and shall be deemed to have been given when delivered by hand or mailed by
registered or certified mail, return receipt requested, as follows (provided that notice of a
change of address shall be deemed given only when received):

27

 

If to the Company:

Allied Waste Industries, Inc.

18500 North Allied Way

Phoenix, Arizona 85054

Attn: General Counsel

If to the Executive:

Edward A. Evans, Executive Vice President and Chief Personnel Officer

c/o Allied Waste Industries, Inc.

18500 North Allied Way

Phoenix, Arizona 85054

or to such other names or addresses as the Company or the Executive, as the case may be, shall
designate by notice to the other party in the manner specified in this Section 11.1.

          11.2. Waiver of Breach. The waiver by any party of a breach of any provision of this Agreement
shall neither operate nor be construed as a waiver of any subsequent breach by any party. No breach
shall be deemed waived unless the waiver is in a writing signed by the non-breaching party.

          11.3. Assignment. This Agreement shall be binding upon and inure to the benefit of the
Company, its Affiliates, successors, legal representatives and assigns, and upon the Executive, his
heirs, executors, administrators, legal representatives and assigns; provided, however, the
Executive agrees that his rights and obligations hereunder are personal to him and may not be
assigned without the express written consent of the Company.

          11.4. Entire Agreement, No Oral Amendments. This Agreement, together with any schedule or
exhibit attached hereto and any document, policy, rule or regulation referred to herein, replaces
and merges all previous agreements and discussions relating to the same or similar subject matter
between the Executive and the Company and constitutes the entire agreement between the Executive
and the Company with respect to the subject matter of this Agreement. This Agreement may not be
modified in any respect by any verbal statement, representation or agreement made by any employee,
officer, or representative of the Company or by any written agreement unless signed by an officer
of the Company who is expressly authorized by the Company to execute such document.

          11.5. Enforceability. If any provision of this Agreement or application thereof to anyone or
under any circumstances shall be determined to be invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provisions or applications of this Agreement which can
be given effect without the invalid or unenforceable provision or application.

          11.6. Jurisdiction, Venue. The laws of the State of Arizona shall govern the interpretation,
validity and effect of this Agreement without regard to the place of execution or the place for
performance thereof, and the Company and the Executive agree

28

 

that the courts situated in Maricopa County, Arizona shall have personal jurisdiction over the
Company and the Executive to hear all disputes arising under this Agreement. This Agreement is to
be at least partially performed in Maricopa County, Arizona, and as such, the Company and the
Executive agree that venue shall be proper with the courts in Maricopa County, Arizona to hear such
disputes. In the event either party is not able to effect service of process upon the other party
with respect to such disputes, the Company and the Executive expressly agree that the Secretary of
State for the State of Arizona shall be an agent of the Company and/or the Executive to receive
service of process on behalf of the Company and/or the Executive with respect to such disputes.

          11.7. Injunctive Relief. The Company and the Executive agree that a breach of any term of this
Agreement by the Executive would cause irreparable damage to the Company and that, in the event of
such breach, the Company shall have, in addition to any and all remedies of law, the right to any
injunction, specific performance and other equitable relief to prevent or to redress the violation
of the Executive’s obligations under this Agreement.

          11.8. Withholding. All payments made pursuant to this Agreement shall be net of payroll and
withholding deductions as may be required by law and other deductions that are either applied
generally to employees of the Company for insurance and other employee benefit plans or authorized
by Executive.

          11.9. Arbitration. With the sole exception of any breach by the Executive of the obligations
he assumed under Sections 10.1, 10.2, 10.3, 10.4 and/or 10.5 of this Agreement (the breach of which
permits the Company to obtain judicial relief due to the exigent circumstances presented by such a
breach), all other alleged breaches of this Agreement, or any other dispute between the parties to
this Agreement arising out of or in connection with the Executive’s employment with the Company
will be settled by binding arbitration to the fullest extent permitted by law. This Agreement to
arbitrate applies to any claim for relief of any nature, including but not limited to claims of
wrongful discharge under statutory law and common law; employment discrimination based on federal,
state or local statute, ordinance, or governmental regulations, including discrimination prohibited
by: (a) Title VII of the Civil Rights Act of 1964, as amended, (b) the Age Discrimination in
Employment Act, (c) the Americans with Disabilities Act, (d) the Fair Labor Standards Act, and (e)
claims of retaliatory discharge or other acts of retaliation; compensation disputes; tortuous
conduct; allegedly contractual violations; ERISA violations; and other statutory and common law
claims and disputes, regardless of whether the statute was enacted or whether the common law
doctrine was recognized at the time this Agreement was signed.

          The parties to this Agreement understand that they are agreeing to substitute one legitimate
dispute resolution forum (arbitration) for another (litigation) because of the mutual advantages
this forum offers, and are waiving their right to have their disputes (except as to breaches of
Sections 10.1, 10.2, 10.3, 10.4 and/or 10.5 of this Agreement) resolved in court. This substitution
involves no surrender, by either party, of any substantive statutory or common law benefit,
protection, or defense.

29

 

          The arbitration proceeding shall be conducted in Maricopa County, Arizona, in accordance with
the National Rules for the Resolution of Employment Disputes (National Rules) of the American
Arbitration Association (AAA) in effect at the time a demand for arbitration is made.

          One arbitrator shall be used and he or she shall be chosen by mutual agreement of the parties
to this Agreement. If, within thirty (30) days after the Executive notifies the Company of an
arbitrable dispute, no arbitrator has been chosen, an arbitrator shall be chosen by the AAA
pursuant to its National Rules. The arbitrator shall coordinate and, as appropriate, limit all
pre-arbitration discovery. However, the parties to this Agreement will have the right to obtain
discovery through appropriate decision and award, stating the reasons for the award. The decision
and award shall be exclusive, final, and binding on both parties to this Agreement, their heirs,
executors, administrators, successors, and assigns.

          The Company will pay all costs and expenses of the arbitration, except for the filing fees and
costs that would have been required had the proceeding been initiated and maintained in the
Maricopa County Superior Court, which fees and costs the Executive will pay. Each party shall pay
their own attorneys’ fees and expenses throughout the arbitration proceeding. However, the
arbitrator may award the successful party its attorneys’ fees and expenses at the conclusion of the
arbitration (and any other relief provided by law).

	 	 	 	 	 
	Dated: March 2, 2007.	 	ALLIED WASTE INDUSTRIES, INC.
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	“Company”
	 
	 	 	 	 
	Dated: March 2, 2007.
	 	 	 	 
	 	 	 
	 	 	Edward A. Evans
	 
	 	 	 	 
	 

	 	 	 	“Executive”

30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]