Document:

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                                                                    EXHIBIT 10.3

                             WASTE MANAGEMENT, INC.
                  Performance-Based Incentive Compensation Plan
                  (Amended and Restated as of January 1, 2001)

     1. Purpose. The principal purpose of the Waste Management, Inc.
Performance-Based Incentive Compensation Plan (the "Plan") is to advance the
interests of Waste Management, Inc. (the "Company") by providing for annual or
other periodic bonuses for key employees of the Company and its subsidiaries who
are designated as participants in the Plan in the manner hereinafter provided,
so as to attract and retain such individuals, make their compensation
competitive with other opportunities and provide them with an incentive to
strive to achieve the Company's financial and other business objectives.

     2. Administration. With respect to participation in the Plan by individuals
who are executive officers of the Company ("Key Participants"), the Plan shall
be administered by the Compensation Committee (the "Committee") of the Board of
Directors of the Company (the "Board"). With respect to participation in the
Plan by individuals who are not Key Participants, the Plan shall be administered
by a committee appointed by the Company's Chief Executive Officer, and all
references herein to the "Committee" shall be deemed to mean such committee as
to matters involving the participation in the Plan of such individuals who are
not Key Participants, provided, however, that in the event of a Change in
Control (as such term is defined in the Company's 1996 Stock Option Plan for
Non-Employee Directors, as may be amended from time to time) of the Company, the
Plan shall be administered by those members of the Committee, if any, and those
members of the Board, continuing as directors of the Company, but, if there are
no such continuing directors, decisions shall be made by the Committee as
constituted prior to the Change in Control. Any person serving on the Committee
shall be entitled to the full benefits of the indemnification provisions set
forth in Article X of the Company's By-Laws, including, without limitation, any
actions or failure to act by such persons administering this Plan following any
Change in Control.

     3. Eligibility.

     (a) Participants in the Plan for a calendar year (a "Plan Year") shall be
selected by the Committee at the beginning of such Plan Year from among the key
employees of the Company and its subsidiaries.

     (b) Notwithstanding the foregoing, individuals who become eligible to
participate in the Plan after the beginning of a Plan Year shall, subject to
selection and approval by the Committee, be entitled to a bonus prorated to
reflect such participant's number of months of participation during the Plan
Year or for any longer period determined by the Committee.

     (c) A participant whose employment terminates during the Plan Year shall
not be entitled to the payment of a bonus under the Plan, except, with respect
to a non-Key Participant, as the Committee may otherwise determine in its sole
discretion. The Committee, in its discretion, may also award all or part of a
target bonus to a Key

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Participant whose employment terminates due to his disability, death or other
circumstances of cessation of employment as determined appropriate by the
Committee.

     4. Bonuses. (a) Each participant in the Plan shall be eligible to receive
such bonus, if any, for each Plan Year as may be payable pursuant to the
performance criteria described below. Except as provided in Section 7 below, the
Committee shall establish each Plan Year a "target bonus" for each participant
equal to a percentage of such participant's annual base salary as of the last
day of such Plan Year, and the maximum amount of a target bonus that may be
awarded to a participant for a Plan Year shall be 200% thereof or as limited by
Section 6(c).

     (b) Participants shall have their bonuses, if any, determined on the basis
of the degree of achievement of performance goals which shall be established by
the Committee in writing, based on corporate objectives determined by the Board,
and which goals shall be stated in terms of the attainment of specified levels
of or percentage changes (as compared to a prior measurement period or the
current year's budget) in any one or more of the following measurements: the
Company's revenue, earnings per share of common stock (the "Common Stock"),
pretax income, cash flow from operations, total cash flow, return on equity,
return on capital, return on assets, net operating profits after taxes, economic
value added, total stockholder return, strategic growth, return on sales, or
other financial metrics or individual performance objectives which are measured
solely in terms of the attainment of quantitative targets related to the
Company's business, or any combination thereof. The Committee shall for each
Plan Year establish the performance goal or goals from among the foregoing to
apply to each participant and a formula or matrix prescribing the extent to
which such participant's target bonus shall be earned based upon the degree of
achievement of such performance goal or goals. Except as provided in Section 7
below, the Committee may also designate, with respect to a non-Key Participant,
any other factor or factors to serve as performance goals. The Committee may
determine that the bonus payable to any participant shall be based upon the
attainment of the above-specified performance goals but applied in whole or in
part to the results of a subsidiary, business unit, division or department of
the Company for which such participant has substantial management
responsibility.

     (c) Except as provided in Section 7 below, a non-Key Participant whose
target bonus or performance goals are changed by the Committee during the Plan
Year to reflect a change in responsibilities or otherwise shall have his or her
bonus award, if any, based on the amount of base salary earned and the
performance goals applicable while in each target bonus category during the Plan
Year.

     (d) The earnings per share of the Company's Common Stock for any year shall
be as determined by the Company's independent public accountants or a primary,
rather than fully-diluted, basis, and all other financial measurements which are
used as the performance goals set forth in this Section 4 (or as a component of
such performance goals) shall be determined in accordance with generally
accepted accounting principles, excluding as to both such earnings and other
measurements the effects of changes in

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accounting standards or methods and special, unusual or nonrecurring events as
determined appropriate by the Committee.

     (e) Except as provided in Section 6 below, the Committee may, in its sole
discretion, (i) award or increase the amount of bonuses payable to one or more
non-Key Participants even though not earned in accordance with the performance
goals established pursuant to this Section 4, or (ii) decrease the amount of
bonuses otherwise payable to one or more participants even though earned in
accordance with the performance goals established pursuant to this Section 4.

     5. Payment. Payment of bonuses for any Plan Year shall be made in cash as
soon as reasonably practicable after the end of such Plan Year.

     6. Participation by Certain Officers. Notwithstanding any other provisions
of the Plan to the contrary, the following provisions shall be applicable to
participation in the Plan by Key Participants:

     (a) Each such participant's target bonus under this Plan for such Plan Year
shall be based solely on achievement of one or more of the performance goals as
established by the Committee pursuant to Section 4 above.

     (b) With respect to each such participant, no bonus shall be payable
hereunder except upon written certification by the Committee that the
performance goals have been satisfied to a particular extent and that any other
material terms and conditions precedent to payment of a bonus pursuant to the
Plan have been satisfied.

     (c) The maximum bonus award payable to any such participant for any Plan
Year shall be $3,000,000.

     7. Adjustments for Changes in Stock, Mergers, Etc. In the event of
dividends payable in Common Stock or in the case of the subdivision or
combination of Common Stock, appropriate revision shall be made in any earnings
per share criteria established by the Committee pursuant to Section 4 above. In
the event of a Change in Control (as such term is defined in the Company's 1996
Stock Option Plan for Non-Employee Directors, as may be amended from time to
time) of the Company (i) the Plan Year shall end as of the date of such Change
in Control, (ii) the Committee shall cause any bonus awards payable to
participants for the current Plan Year to be promptly calculated (without any
discretionary decrease pursuant to Section 4(e)(ii)) and (iii) the Company shall
pay such bonus awards to participants (determined as of the date of the Change
in Control without regard to any subsequent termination of employment) as
promptly as practicable following the Committee's determination, notwithstanding
any other Plan provision to the contrary. In calculating the amount, timing,
eligibility and other factors affecting bonuses payable to participant in
connection with the Change in Control, the Committee, as constituted prior to
the Change in Control, is authorized to take into consideration such factors as
the shortened Plan Year, seasonal fluctuations in results of the criteria

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established under Section 4(b) hereof and any other equitable adjustments to the
formulae or matrices established by the Committee pursuant to Section 4 as it
deems appropriate.

     8. Participant's Interests. A participant's interest in any bonus awards
hereunder shall at all times be reflected on the Company's books as a general
unsecured and unfunded obligation to the Company subject to the terms and
conditions of the Plan. The Plan shall not give any person any right or security
interest in any asset of the Company or any fund in which any deferred payment
is deemed invested. Neither the Company, the Board nor the Committee shall be
responsible for the adequacy of the general assets of the Company to discharge
the payment of its obligations hereunder nor shall the Company be required to
reserve or set aside funds therefor.

     9. Non-Alienation of Benefits: Beneficiary Designation. All rights and
benefits under the Plan are personal to the participant and neither the Plan nor
any right or interest of a participant or any other person arising under the
Plan is subject to voluntary or involuntary alienation, sale, transfer, or
assignment without the Committee's consent, which may be withheld in its
discretion. Subject to the foregoing, the Company shall establish such
procedures as it deems necessary for a participant to designate one or more
beneficiaries to whom any bonus payment the Committee determines to make and any
deferred amounts would be payable in the event of the participant's death.
Absent such a designation, payment shall be made to the participant's estate.

     10. Withholding for Taxes. Notwithstanding any other provisions of this
Plan, the Company may withhold from any payment made by it under the Plan such
amount or amounts as may be required for purposes of complying with the tax
withholding or other provisions of the Code or the Social Security Act or any
state's income tax act or for purposes of paying any estate, inheritance or
other tax attributable to any amounts payable hereunder.

     11. No Employment Rights. Nothing contained in the Plan shall confer upon
any participant any right to be continued in the employ of the Company or any of
its subsidiaries or interfere in any way with the right of the Company or any of
its subsidiaries to terminate a participant's employment at any time.

     12. Gender and Number. Where the context admits, words denoting men include
women, the plural includes the singular, and the singular includes the plural.

     13. Committee or Company Determinations Final. Each determination provided
for in the Plan shall be made by the Committee or the Company, as the case may
be, under such procedures as may from time to time be prescribed by the
Committee or the Company and shall be made in the sole discretion of the
Committee or the Company, as the case may be. As such determination shall be
conclusive on all parties.

     14. Amendment or Termination. The Board may in its sole discretion
terminate or amend the Plan from time to time. No such termination or amendment
shall alter a participant's right to receive a distribution as awarded but
unpaid to such participant, as

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to which this Plan shall remain in effect following its termination until all
such amounts have been paid.

     15. Successors. The Plan is binding on and will inure to the benefit of any
successor to the Company, whether by way of merger, consolidation, purchase or
otherwise.

     16. Controlling Law. The Plan shall be construed in accordance with the
laws of the State of Texas.<PAGE>   1
                                                                    EXHIBIT 10.4

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into on
this 1st day of April, 2001 by and between Canadian Waste Services, Inc. (the
"Company"), and Domenic Pio (the "Executive"). The Company is an indirect
subsidiary of Waste Management, Inc. ("WMI").

         1.       EMPLOYMENT AND TERMINATION OF PREVIOUS EMPLOYMENT AGREEMENT.

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

         The Company and Executive hereby agree that the certain Employment
Agreement between Executive and Canadian Waste Services, Inc. dated on or about
April 6, 1999 is wholly and completely terminated, and any and all obligations
of the Company and Executive created thereunder, whether express or implied,
shall be null and void and of no further force or effect, and that the only
continuing rights, obligations, and duties between the Company and Executive
shall be those expressly set forth in this Agreement.

         2.       TERM OF EMPLOYMENT.

         The period of Executive's employment under this Agreement shall
commence on April 1, 2001 ("Employment Date"), and shall continue for a period
of two (2) years thereafter, and shall automatically be renewed for successive
one (1) year periods thereafter, unless Executive's employment is terminated in
accordance with Section 5 below. The period during which Executive is employed
hereunder shall be referred to as the "Employment Period."

         3.       DUTIES AND RESPONSIBILITIES.

         (A) Executive shall serve as President of Canadian Waste Services, Inc.
In such capacity, Executive shall perform such duties and have the power,
authority, and functions commensurate with such position in similarly-sized
public companies, and have and possess such other authority and functions
consistent with such position as may be assigned to Executive from time to time
by the Chief Executive Officer of WMI.

         (B) Executive shall devote substantially all of his working time,
attention and energies to the business of the Company, and its affiliated
entities. Executive may make and manage his personal investments (provided such
investments in other activities do not violate, in any material respect, the
provisions of Section 8 of this Agreement), be involved in charitable and
professional activities, and, with the prior written consent of the WMI Board of
Directors, serve on boards of other for profit entities, provided such
activities do not materially interfere with the performance of his duties
hereunder.

         4.       COMPENSATION AND BENEFITS.

         (A) BASE SALARY. During the Employment Period, the Company shall pay
Executive a base salary at the annual rate of Three Hundred Fifty-Four Thousand
Eight Hundred Ninety and

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00/100ths Canadian Dollars (C$354,890.00) per year, or such higher rate as may
be determined from time to time by the Company ("Base Salary"). Such Base Salary
shall be paid in accordance with the Company's standard payroll practice for its
executive officers. Once increased, Base Salary shall not be reduced.

         (B) ANNUAL BONUS. During the Employment Period, Executive will
be entitled to participate in an annual incentive compensation plan of the
Company. The Executive's target annual bonus will be seventy-five percent (75%)
of his Base Salary in effect for such year (the "Target Bonus"), and his actual
annual bonus may range from 0% to 150% (two times Target Bonus), and will be
determined based upon (i) the achievement of certain WMI and Company performance
goals, as may be established and approved by from time to time by the
Compensation Committee of the WMI Board of Directors, and (ii) the achievement
of personal performance goals as may be established by WMI's Chief Executive
Officer.

         (C) STOCK OPTIONS. Executive shall be eligible to be considered for
stock option grants under Waste Management Inc.'s annual stock option award
program as administered by, and at the discretion of, the Compensation Committee
of the WMI Board of Directors.

         (D) BENEFIT PLANS AND VACATION. Subject to the terms of such plans,
Executive shall be eligible to participate in or receive benefits under any
pension plan, profit sharing plan, salary deferral plan, medical and dental
benefits plan, life insurance plan, short-term and long-term disability plans,
or any other health, welfare or fringe benefit plan, generally made available to
similarly-situated WMI executive employees. Neither WMI nor the Company shall be
obligated to institute, maintain, or refrain from changing, amending, or
discontinuing any benefit plan, or perquisite, so long as such changes are
similarly applicable to similarly-situated employees generally.

         During the Employment Period, Executive shall be entitled to vacation
each year in accordance with the Company's policies in effect from time to time,
but in no event less than four (4) weeks paid vacation per calendar year.

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

         During the Employment Period, the Company shall pay Executive a taxable
monthly automobile allowance of one thousand (C$1,000) Canadian dollars per
month to cover the cost of ownership of an automobile or the Company shall lease
an automobile, which Executive shall be entitled to utilize on an exclusive and
taxable benefit basis during the Employment Period. The automobile lease cost
shall be comparable to the taxable automobile allowance in value.

         (F) OTHER PERQUISITES. Executive shall be entitled to all perquisites
provided to Senior Vice Presidents of WMI as approved by the Compensation
Committee of the WMI Board of Directors, and as they may exist from time to
time.

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         5.       TERMINATION OF EMPLOYMENT.

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

         (A) DEATH. Executive's employment hereunder shall terminate upon
Executive's death.

         (B) TOTAL DISABILITY. The Company may terminate Executive's employment
hereunder upon Executive becoming "Totally Disabled." For purposes of this
Agreement, Executive shall be considered "Totally Disabled" if Executive has
been physically or mentally incapacitated so as to render Executive incapable of
performing the essential functions of Executive's position with or without
reasonable accommodation. Executive's receipt of disability benefits under the
Company's long-term disability plan or receipt of Employment Insurance
disability benefits shall be deemed conclusive evidence of Total Disability for
purpose of this Agreement; provided, however, that in the absence of Executive's
receipt of such long-term disability benefits or Employment Insurance benefits,
WMI's Board of Directors may, in its reasonable discretion (but based upon
appropriate medical evidence), determine that Executive is Totally Disabled.

         (C) TERMINATION BY THE COMPANY FOR CAUSE. The Company may terminate
Executive's employment hereunder for "Cause" at any time after providing a
Notice of Termination for Cause to Executive.

         (i)  For purposes of this Agreement, the term "Cause" means any of the
              following: (A) willful or deliberate and continual refusal to
              perform Executive's employment duties reasonably requested by the
              Company after receipt of written notice to Executive of such
              failure to perform, specifying such failure (other than as a
              result of Executive's sickness, illness or injury) and Executive
              fails to cure such nonperformance within ten (10) days of receipt
              of said written notice; (B) breach of any statutory or common law
              duty of loyalty to the Company; (C) has been convicted of an
              indictable offense; (D) willfully or intentionally caused material
              injury to the Company, its property, or its assets; (E) disclosed
              to unauthorized person(s) proprietary or confidential information
              of the Company; or (F) breach of any of the covenants set forth in
              Section 8 hereof.

         (ii) For purposes of this Agreement, the phrase "Notice of Termination
              for Cause" shall mean a written notice that shall indicate the
              specific termination provision in Section 5(c)(i) relied upon, and
              shall set forth in reasonable detail the facts and circumstances
              which provide the basis for termination for Cause. Further, a
              Notification of Termination for Cause shall be required to include
              a copy of a resolution duly adopted by at least two-thirds (2/3)
              of the entire membership of the WMI Board of Directors at a
              meeting of the Board which was called for the purpose of
              considering such employment termination, and at which Executive
              and his representative had the right to attend and address the
              Board, finding that, in the good faith belief of the Board,
              Executive engaged in conduct set forth in Section 5(c)(i) herein
              and specifying the particulars thereof in reasonable detail.

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              The date of termination for Cause shall be the date indicated in
              the Notice of Termination for Cause. Any purported termination for
              Cause which is held by a court or arbitrator not to have been
              based on the grounds set forth in this Agreement or not to have
              followed the procedures set forth in this Agreement shall be
              deemed a termination by the Company without Cause.

        (D)  VOLUNTARY TERMINATION BY EXECUTIVE.  Executive may terminate his
employment hereunder with or without Good Reason at any time upon written notice
to the Company.

         (i)  A termination for "Good Reason" means a resignation of employment
              by Executive by written notice ("Notice of Termination for Good
              Reason") given to WMI's Chief Executive Officer within ninety (90)
              days after the occurrence of the Good Reason event, unless such
              circumstances are substantially corrected prior to the date of
              termination specified in the Notice of Termination for Good
              Reason. For purposes of this Agreement, "Good Reason" shall mean
              the occurrence or failure to cause the occurrence, as the case may
              be, without Executive's express written consent, of any of the
              following circumstances: (A) the Company substantially changes
              Executive's core duties or removes Executive's responsibility for
              those core duties, so as to effectively cause Executive to no
              longer be performing the duties of his position (except in each
              case in connection with the termination of Executive's employment
              for Cause or Total Disability or as a result of Executive's death,
              or temporarily as a result of Executive's illness or other
              absence), provided that the change in the geographic area of
              Executive's responsibility or the reassignment of Executive to a
              different geographical area within Canada or the change in
              reporting structure shall not constitute Good Reason under any
              circumstances; further provided that if the WMI becomes a fifty
              percent or more subsidiary of any other entity, Executive shall be
              deemed to have a substantial change in the core duties of his
              position unless he is a Senior Vice-President of the ultimate
              parent entity; (B) removal or the non-reelection of the Executive
              from the officer position with the Company specified herein, or
              removal of the Executive from any of his then officer positions;
              (C) any material breach by the Company of any provision of this
              Agreement, including without limitation Section 10 hereof; or (D)
              failure of any successor to the Company or to WMI (whether direct
              or indirect and whether by merger, acquisition, consolidation or
              otherwise) to assume in a writing delivered to Executive upon the
              assignee becoming such, the obligations of the Company hereunder.

         (ii) A "Notice of Termination for Good Reason" shall mean a notice that
              shall indicate the specific termination provision relied upon and
              shall set forth in reasonable detail the facts and circumstances
              claimed to provide a basis for Termination for Good Reason. The
              failure by Executive to set forth in the Notice of Termination for
              Good Reason any facts or circumstances which contribute to the
              showing of Good Reason shall not waive any right of Executive
              hereunder or preclude Executive from asserting such fact or
              circumstance in enforcing his rights hereunder. The Notice of
              Termination for Good Reason shall provide for a

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              date of termination not less than ten (10) nor more than sixty
              (60) days after the date such Notice of Termination for Good
              Reason is given, provided that in the case of the events set forth
              in Sections 5(d)(i)(A) or (B), the date may be five (5) business
              days after the giving of such notice.

         (E) TERMINATION BY THE COMPANY WITHOUT CAUSE. The Company may terminate
Executive's employment hereunder without Cause at any time upon written notice
to Executive.

         (F)  EFFECT OF TERMINATION. Upon any termination of employment for any
reason, Executive shall immediately resign from all Board memberships and other
positions with the Company, or any of its parent corporations or subsidiaries
held by him at such time.

         6.       COMPENSATION FOLLOWING TERMINATION OF EMPLOYMENT.

         In the event that Executive's employment hereunder is terminated,
Executive shall be entitled to the following compensation and benefits upon such
termination:

         (A)  TERMINATION BY REASON OF DEATH. In the event that Executive's
employment is terminated by reason of Executive's death, the Company shall pay
the following amounts to Executive's beneficiary or estate:

         (i)  Any accrued but unpaid Base Salary for services rendered to the
              date of death, any accrued but unpaid expenses required to be
              reimbursed under this Agreement, any vacation accrued to the date
              of termination, any earned but unpaid bonuses for any prior
              period, and, to the extent not otherwise paid, a pro-rata bonus or
              incentive compensation payment to the extent payments are awarded
              to senior executives of WMI and paid at the same time as senior
              executives are paid.

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

        (iii) An amount equal to the Base Salary (at the rate in effect as of
              the date of Executive's death) which would have been payable to
              Executive if Executive had continued in employment for two
              additional years. Said payments will be paid to Executive's estate
              or beneficiary at the same time and in the same manner as such
              compensation would have been paid if Executive had remained in
              active employment.

         (iv) As of the date of termination by reason of Executive's death,
              stock options previously awarded to Executive as of the date of
              death shall be fully vested, and Executive's estate or beneficiary
              shall have up to one (1) year from the date of death to exercise
              all such previously-awarded options, provided that in no event
              will any option be exercisable beyond its term. No stock options
              contemplated by this Agreement, but not yet awarded to Executive
              as of the time of his death, shall be granted.

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         (B)  TERMINATION BY REASON OF TOTAL DISABILITY. In the event that
Executive's employment is terminated by reason of Executive's Total Disability
as determined in accordance with Section 5(b), the Company shall pay the
following amounts to Executive:

         (i)  Any accrued but unpaid Base Salary for services rendered to the
              date of termination, any accrued but unpaid expenses required to
              be reimbursed under this Agreement, any vacation accrued to the
              date of termination, and any earned but unpaid bonuses for any
              prior period. Executive shall also be eligible for a pro-rata
              bonus or incentive compensation payment to the extent such awards
              are made to senior executives of WMI for the year in which
              Executive is terminated, and to the extent not otherwise paid to
              the Executive.

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

       (iii)  An amount equal to the Base Salary (at the rate in effect as of
              the date of Executive's Total Disability) which would have been
              payable to Executive if Executive had continued in active
              employment for two years following termination of employment, less
              any payments under any long-term disability plan or arrangement
              paid for by the Company. Payment shall be made at the same time
              and in the same manner as such compensation would have been paid
              if Executive had remained in active employment until the end of
              such period.

        (iv)  As of the date of termination by reason of Executive's Total
              Disability, stock options previously awarded to Executive as of
              the date of termination shall be fully vested, and Executive or
              his legal guardian shall have up to one (1) year from the date of
              death to exercise all such previously-awarded options, provided
              that in no event will any option be exercisable beyond its term.
              No stock options contemplated by this Agreement, but not yet
              awarded to Executive as of the time of his employment termination,
              shall be granted.

         (C) TERMINATION FOR CAUSE.  In the event that Executive's employment is
terminated by the Company for Cause, the Company shall pay the following amounts
to Executive:

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

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

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       (iii)  All options, whether vested or not vested prior to the date of
              such termination of employment, shall be automatically cancelled
              on the date of employment termination. However, it is expressly
              understood and agreed that Executive would have no obligation to
              repay or otherwise reimburse the Company for funds received as a
              result of Executive's having exercised any previously-vested stock
              options prior to his employment termination.

         (D)  VOLUNTARY TERMINATION BY EXECUTIVE.  In the event that Executive
voluntarily terminates employment other than for Good Reason, the Company shall
pay the following amounts to Executive:

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

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

       (iii)  Any stock options that have not vested prior to the date of such
              termination of employment shall be automatically cancelled as of
              that date, and Executive shall have ninety (90) days following the
              date of termination of employment to exercise any previously
              vested options; provided that in no event will any option be
              exercisable beyond its term. No stock options contemplated by this
              Agreement, but not yet awarded to Executive as of the time of his
              employment termination, shall be granted.

         (E)  TERMINATION BY THE COMPANY WITHOUT CAUSE; TERMINATION BY EXECUTIVE
FOR GOOD REASON. In the event that Executive's employment is terminated by the
Company for reasons other than death, Total Disability or Cause, or Executive
terminates his employment for Good Reason, the Company shall pay the following
amounts to Executive:

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

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

       (iii)  An amount equal to two times the sum of Executive's Base Salary
              plus his Target Annual Bonus (in each case as then in effect), of
              which one-half shall be paid in a lump sum within ten (10) days
              after such termination and one-half shall be paid

                                       7
<PAGE>   8

              during the two (2) year period beginning on the date of
              Executive's termination and shall be paid at the same time and in
              the same manner as Base Salary would have been paid if Executive
              had remained in active employment until the end of such period.

        (iv)  The Company at its expense will continue for Executive and
              Executive's spouse and dependents, all health benefit plans,
              programs or arrangements, whether group or individual, disability,
              and other benefit plans, in which Executive was entitled to
              participate at any time during the twelve-month period prior to
              the date of termination, until the earliest to occur of (A) two
              years after the date of termination; (B) Executive's death
              (provided that benefits provided to Executive's spouse and
              dependents shall not terminate upon Executive's death); or (C)
              with respect to any particular plan, program or arrangement, the
              date Executive becomes eligible to participate in a comparable
              benefit provided by a subsequent employer. In the event that
              Executive's continued participation in any such Company plan,
              program, or arrangement is prohibited, the Company will arrange to
              provide Executive with benefits substantially similar to those
              which Executive would have been entitled to receive under such
              plan, program, or arrangement, for such period on a basis which
              provides Executive with no additional after tax cost.

         (v)  Executive shall continue to vest in all stock option awards or
              restricted stock awards over the two (2) year period commencing on
              the date of such termination. Executive shall have two (2) years
              and six (6) months after the date of termination to exercise all
              options to the extent then vested, provided that in no event may
              any option be exercisable beyond its term.

         (F)  NO OTHER BENEFITS OR COMPENSATION. Except as may be provided under
this Agreement, under the terms of any incentive compensation, employee benefit,
or fringe benefit plan applicable to Executive at the time of Executive's
termination or resignation of employment, Executive shall have no right to
receive any other compensation, or to participate in any other plan, arrangement
or benefit, with respect to future periods after such termination or
resignation.

         (G)  NO MITIGATION; NO SET-OFF. In the event of any termination of
employment hereunder, Executive shall be under no obligation to seek other
employment and there shall be no offset against any amounts due Executive under
this Agreement on account of any remuneration attributable to any subsequent
employment that Executive may obtain. The amounts payable hereunder shall not be
subject to setoff, counterclaim, recoupment, defense or other right which the
Company may have against the Executive or others, except upon obtaining by the
Company of a final non-appealable judgment against Executive.

         7.       RESIGNATION BY EXECUTIVE FOR GOOD REASON AND COMPENSATION
PAYABLE FOLLOWING CHANGE IN CONTROL.

         (A)  RESIGNATION FOR GOOD REASON FOLLOWING CHANGE IN CONTROL. In the
event a "Change in Control" occurs and Executive terminates his employment for
Good Reason thereafter, or the Company terminates Executive's employment other
than for Cause, or such

                                       8
<PAGE>   9

termination for Good Reason or without Cause occurs in contemplation of such
Change in Control (any termination within six (6) months prior to such Change in
Control being presumed to be in contemplation unless rebutted by clear and
demonstrable evidence to the contrary), the Company shall pay the following
amounts to Executive:

         (i)  The payments and benefits provided for in Section 6(e), except
              that (A) the amount and period with respect to which severance is
              calculated pursuant to Section 6(e)(iii) will be three (3) years
              and the amount shall be paid in a lump-sum and (B) the benefit
              continuation period in Section 6(e)(iv) shall be for three years.

        (ii)  In lieu of Section 6(e)(v), Executive will be 100% vested in all
              benefits, awards, and grants (including stock option grants and
              stock awards, all of such stock options exercisable for three (3)
              years following Termination, provided that in no event will any
              option be exercisable beyond its term) accrued but unpaid as of
              the date of termination under any non-qualified pension plan,
              supplemental and/or incentive compensation or bonus plans, in
              which Executive was a participant as of the date of termination.
              Executive shall also receive a bonus or incentive compensation
              payment (the "bonus payment"), payable at 100% of the maximum
              bonus available to Executive, pro-rated as of the effective date
              of the termination. The bonus payment shall be payable within five
              (5) days after the effective date of Executive's termination.
              Except as may be provided under this Section 7 or under the terms
              of any incentive compensation, employee benefit, or fringe benefit
              plan applicable to Executive at the time of Executive's
              termination of employment, Executive shall have no right to
              receive any other compensation, or to participate in any other
              plan, arrangement or benefit, with respect to future periods after
              such resignation or termination.

         (B)  CHANGE IN CONTROL.  For purposes of this Agreement, "Change in
Control" means the occurrence of any of the following events:

         (i)  any Person is or becomes the Beneficial Owner, directly or
              indirectly, of securities of WMI (not including in the securities
              beneficially owned by such person any securities acquired directly
              from WMI or its Affiliates) representing twenty-five percent (25%)
              or more of the combined voting power of WMI's then outstanding
              voting securities;

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

                                       9
<PAGE>   10

       (iii)  there is a consummated merger or consolidation of WMI or any
              direct or indirect subsidiary of WMI with any other corporation,
              other than (A) a merger or consolidation which would result in the
              voting securities of WMI outstanding immediately prior thereto
              continuing to represent (either by remaining outstanding or by
              being converted into voting securities of the surviving or parent
              entity) more than fifty percent (50%) of the combined voting power
              of the voting securities of WMI or such surviving or parent equity
              outstanding immediately after such merger or consolidation or (B)
              a merger or consolidation effected to implement a recapitalization
              of WMI (or similar transaction) in which no Person, directly or
              indirectly, acquired twenty-five percent (25%) or more of the
              combined voting power of WMI's then outstanding securities (not
              including in the securities beneficially owned by such person any
              securities acquired directly from WMI or its Affiliates); or

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

         For purposes of this Section 7(b), the following terms shall have the
following meanings:

         (i)  "Affiliate" shall mean an affiliate of WMI, as defined in
              Rule 12b-2 promulgated under Section 12 of the Securities Exchange
              Act of 1934, as amended from time to time (the "Exchange Act");

        (ii)  "Beneficial Owner" shall have the meaning set forth in Rule 13d-3
              under the Exchange Act;

       (iii)  "Person" shall have the meaning set forth in Section 3(a)(9) of
              the Exchange Act, as modified and used in Sections 13(d) and 14(d)
              thereof, except that such term shall not include (1) WMI, (2) a
              trustee or other fiduciary holding securities under an employee
              benefit plan of WMI, (3) an underwriter temporarily holding
              securities pursuant to an offering of such securities or (4) a
              corporation owned, directly or indirectly, by the stockholders of
              WMI in substantially the same proportions as their ownership of
              shares of Common Stock of WMI.

         8.       COVENANTS

         (A)  THIS AGREEMENT. The terms of this Agreement constitute
Confidential Information, which Executive shall not disclose to anyone other
than Executive's spouse, lawyers, advisors, or as required by law. Disclosure of
these terms is a material breach of this Agreement and could subject Executive
to disciplinary action, including without limitation, termination of employment
for Cause.

                                       10
<PAGE>   11

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

         (C)  CONFIDENTIAL INFORMATION; NON-DISCLOSURE. Executive acknowledges
that the business of the Company is highly competitive and that the Company has
agreed to provide and immediately will provide Executive with access to
"Confidential Information" relating to the business of the Company, WMI, and
their respective affiliates.

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

                                       11
<PAGE>   12

disclosure and use is of critical importance to the Company, Waste Management,
Inc. and their respective affiliates in maintaining their competitive position.

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

         The Company also agrees to provide Executive with one or more of the
following: access to Confidential Information; specialized training regarding
the Company's and WMI's methodologies and business strategies, and/or support in
the development of goodwill such as introductions, information and reimbursement
of customer development expenses consistent with Company policy. The foregoing
is not contingent on continued employment, but is contingent upon Executive's
use of the Confidential Information access, specialized training, and goodwill
support provided by Company for the exclusive benefit of the Company and upon
Executive's full compliance with the restrictions on Executive's conduct
provided for in this Agreement.

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

         (D)  UNFAIR COMPETITION RESTRICTIONS. Upon Executive's Employment
Date, the Company agrees to and shall provide Executive with immediate access to
Confidential Information. Ancillary to the rights provided to Executive
following employment termination, the Company's provision of Confidential
Information, specialized training, and/or goodwill support to Executive, and
Executive's agreements, regarding the use of same, and in order to protect the
value of the above-referenced stock options, training, goodwill support and/or
the Confidential Information described above, the Company and Executive agree to
the following provisions against unfair competition. Executive agrees that for a
period of two (2) years following the termination of employment for any reason
("Restricted Term"), Executive will not, directly or indirectly, for Executive
or for others, anywhere in Canada (the "Restricted Area") do the following,
unless expressly authorized to do so in writing by the Chief Executive Officer
of WMI:

              Engage in, or assist any person, entity, or business engaged in,
              the selling or providing of products or services that would
              displace the products or services that (i) the Company or WMI are
              currently in the business of providing and were in the business of
              providing, or were planning to be in the business of providing, at
              the time Executive was employed with the Company, and (ii) that
              Executive had involvement in or received Confidential Information
              about in the course of employment; the foregoing is expressly
              understood to include, without limitation, the business of the
              collection, transfer, recycling and resource recovery, or disposal
              of
                                       12

<PAGE>   13

              solid waste, including the operation of waste-to-energy facilities
              and alternative energy facilities.

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

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

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

         (F)  NON-SOLICITATION OF EMPLOYEES. During Executive's
employment, and for a period of two (2) years following the termination of
employment for any reason, Executive will not, either directly or indirectly,
call on, solicit, encourage, or induce any other employee or officer of the
Company, WMI, or their respective affiliates whom Executive had contact with,
knowledge of, or association within the course of employment with the Company to
terminate his or her employment, and will not assist any other person or entity
in such a solicitation.

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

                                       13
<PAGE>   14

         9.       ENFORCEMENT OF COVENANTS.

         (A)  TERMINATION OF EMPLOYMENT AND FORFEITURE OF COMPENSATION.
Executive agrees that any breach by Executive of any of the covenants set forth
in Section 8 hereof during Executive's employment by the Company, shall be
grounds for immediate dismissal of Executive for Cause pursuant to Section
5(c)(i), which shall be in addition to and not exclusive of any and all other
rights and remedies the Company may have against Executive.

         (B)  RIGHT TO INJUNCTION. Executive acknowledges that a breach of
the covenants set forth in Section 8 hereof will cause irreparable damage to the
Company and/or WMI with respect to which the remedy at law for damages will be
inadequate. Therefore, in the event of breach or anticipatory breach of the
covenants set forth in this section by Executive, Executive and the Company
agree that the Company and/or WMI shall be entitled to seek the following
particular forms of relief, in addition to remedies otherwise available to it at
law or equity: (A) injunctions, both preliminary and permanent, enjoining or
restraining such breach or anticipatory breach and Executive hereby consents to
the issuance thereof forthwith and without bond by any court of competent
jurisdiction; and (B) recovery of all reasonable sums as determined by a court
of competent jurisdiction expended and costs, including reasonable lawyer's
fees, incurred by the Company and/or WMI to enforce the covenants set forth in
this section.

         (C)  SEPARABILITY OF COVENANTS. The covenants contained in
Section 8 hereof constitute a series of separate but ancillary covenants, one
for each applicable State in the United States and the District of Columbia, and
one for each applicable foreign country. If in any judicial proceeding, a court
shall hold that any of the covenants set forth in Section 8 exceed the time,
geographic, or occupational limitations permitted by applicable laws, Executive
and the Company agree that such provisions shall and are hereby reformed to the
maximum time, geographic, or occupational limitations permitted by such laws.
Further, in the event a court shall hold unenforceable any of the separate
covenants deemed included herein, then such unenforceable covenant or covenants
shall be deemed eliminated from the provisions of this Agreement for the purpose
of such proceeding to the extent necessary to permit the remaining separate
covenants to be enforced in such proceeding. Executive and the Company further
agree that the covenants in Section 8 shall each be construed as a separate
agreement independent of any other provisions of this Agreement, and the
existence of any claim or cause of action by Executive against the Company
whether predicated on this Agreement or otherwise, shall not constitute a
defense to the enforcement by the Company of any of the covenants of Section 8.

         10.      INDEMNIFICATION.

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

                                       14
<PAGE>   15

in the same amount and to the same extent as the Company covers its other
officers and directors.

         11.      DISPUTES AND PAYMENT OF LAWYER'S FEES.

         If at any time during the term of this Agreement or afterwards there
should arise any dispute as to the validity, interpretation or application of
any term or condition of this Agreement, the Company agrees, upon written demand
by Executive (and Executive shall be entitled upon application to any court of
competent jurisdiction, to the entry of a mandatory injunction, without the
necessity of posting any bond with respect thereto, compelling the Company) to
promptly provide sums sufficient to pay on a current basis (either directly or
by reimbursing Executive) Executive's costs and reasonable lawyer's fees
(including expenses of investigation and disbursements for the fees and expenses
of experts, etc.) incurred by Executive in connection with any such dispute or
any litigation, provided that Executive shall repay any such amounts paid or
advanced if Executive is not the prevailing party with respect to at least one
material claim or issue in such dispute or litigation. The provisions of this
Section 11, without implication as to any other section hereof, shall survive
the expiration or termination of this Agreement and of Executive's employment
hereunder.

         12.      WITHHOLDING OF TAXES.

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

         13.      SOURCE OF PAYMENTS.

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

         14.      ASSIGNMENT.

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

                                       15
<PAGE>   16

acceptable to Executive (the provisions of this sentence also being applicable
to any successive such transaction).

         15.      ENTIRE AGREEMENT; AMENDMENT.

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

         16.      GOVERNING LAW.

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

         17.      REQUIREMENT OF TIMELY PAYMENTS.

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

         18.      NOTICES.

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

                       To the Company:    Waste Management , Inc.
                                          1001 Fannin, Suite 4000
                                          Houston, Texas 77002
                                          Attention: Corporate Secretary

                       To Executive:      At the address for Executive set forth
                                          below.

                                       16
<PAGE>   17

         19.      MISCELLANEOUS.

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

         (B)  SEPARABILITY. Subject to Section 9 hereof, if any term or
provision of this Agreement is declared illegal or unenforceable by any court of
competent jurisdiction and cannot be modified to be enforceable, such term or
provision shall immediately become null and void, leaving the remainder of this
Agreement in full force and effect.

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

         (D)  RULES OF CONSTRUCTION.  Whenever the context so requires, the use
of the singular shall be deemed to include the plural and vice versa.

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

         IN WITNESS WHEREOF, this Agreement is EXECUTED and EFFECTIVE as of the
day set forth above.

                                             DOMENIC PIO
                                             ("Executive")

                                             /s/ DOMENIC PIO
                                             -----------------------------------
                                             Domenic Pio

                                             --------------------------(address)

                                             -----------------------------------

                                       17

<PAGE>   18

                                             CANADIAN WASTE SERVICES, INC.
                                             (The "Company")

                                             By: /s/ DAVID P. STEINER
                                                --------------------------------
                                                David Steiner
                                                Vice-President and Secretary

                                             WASTE MANAGEMENT, INC.

                                             By: /s/ A. MAURICE MYERS
                                                --------------------------------
                                                A. Maurice Myers
                                                President and Chief Executive
                                                 Officer

                                       18

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