Document:

EX-10.1 Employment Agreement

WASTE SERVICES, INC.

EXECUTIVE EMPLOYMENT AGREEMENT

This Employment Agreement (the “Agreement”) is dated as of July 22, 2008 by and between WASTE
SERVICES, INC., a Delaware corporation (the “Company”) and BRIAN A. GOEBEL (the “Executive”):

WHEREAS, the Company desires to employ Executive in an executive capacity and Executive desires to
enter into the Company’s employ upon the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein, the
receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

	1.	 	EMPLOYMENT.

The Company shall employ Executive, and Executive shall be employed by the Company, upon the terms
and subject to the conditions set forth in this Agreement, effective as of July 22, 2008 (the
“Effective Date”); provided, however that as a condition to effectiveness of this Agreement, the
Company and Executive shall have entered into an Indemnification Agreement substantially in the
form of Exhibit A attached hereto.

	2.	 	TERM OF EMPLOYMENT.

The period of Executive’s employment under this Agreement (the “Employment Term”) shall begin on
the Effective Date and shall continue until Executive’s employment is terminated in accordance with
Section 5 below.

	3.	 	DUTIES AND RESPONSIBILITIES.

	(a)	 	Executive shall serve as Senior Vice President, Controller and Chief Accounting Officer of
the Company and shall report to the Chief Financial Officer of the Company. In such capacity,
Executive shall have responsibility and authority and shall perform the duties necessary to
carry out those responsibilities and exercise that authority, as may be assigned to Executive
from time to time by the Chief Financial Officer of the Company.

	(b)	 	During the Employment Term, Executive shall devote his full 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; provided, however, that subject to the
limitations of Section 8 hereof and to the prior approval of the Chief Financial Officer of
the Company, Executive may serve on corporate, industry, civic or charitable Boards or
committees as long as such activities do not interfere with the performance of Executive’s
responsibilities to the Company. Executive agrees to act at all times in the best interests
of the Company and to take no action or make any statement, oral or

 

 

	 	 	written, which could reasonably be expected by Executive to injure the Company’s business,
financial condition, results of operations, prospects, interests or reputation.

	(c)	 	Executive agrees to comply at all times during the Employment Term with all applicable
policies, rules, codes and regulations of the Company in effect from time to time, including,
without limitation, all applicable codes of ethics or conduct and all policies regarding
trading in the Company’s common stock.

	4.	 	COMPENSATION AND BENEFITS.

	(a)	 	BASE SALARY. During the Employment Term, the Company shall pay Executive a base salary at
the annual rate of $236,900, or such higher rate as may be determined from time to time by the
Board of Directors or a duly authorized committee thereof (such amount, as increased from time
to time, the “Base Salary”). Such Base Salary shall be paid on the Company’s regular pay days
in accordance with the Company’s standard payroll practice for executive officers, subject
only to such payroll and withholding deductions as may be required by law and other deductions
applied generally to employees of the Company for insurance and other employee benefit plans.
For all purposes under this Agreement, Executive’s Base Salary shall include any amount which
is deferred under any nonqualified plan or arrangement of the Company.

	(b)	 	INCENTIVE COMPENSATION.

	 	(i)	 	ANNUAL CASH BONUS. In addition to the Base Salary, Executive shall be eligible
for an annual cash bonus (either pursuant to a bonus or incentive plan or program of
the Company or otherwise) for each fiscal year during the Employment Term. Executive’s
target annual cash bonus will be equal to 60% (the “Target Bonus Rate”) of his Base
Salary in effect at the beginning of the relevant fiscal year. The amount of the
annual cash bonus, which may be higher or lower than the Target Bonus Rate, shall be
determined by the Board of Directors or a duly authorized committee thereof based upon
applicable corporate and individual performance targets established by the Board of
Directors or such committee in its sole discretion (the “Annual Bonus”). For all
purposes under this Agreement, Executive’s Annual Bonus shall include any amount which
is deferred under any nonqualified plan or arrangement of the Company.

	 	(ii)	 	LONG-TERM OR SUPPLEMENTAL INCENTIVE COMPENSATION. Executive shall be eligible
to participate in any supplemental and/or long-term incentive compensation plans or
programs (which may consist of stock options, restricted stock, long-term cash awards
or other forms of long-term or supplemental incentive compensation) generally made
available to full-time senior executive officers of the Company.

	(c)	 	BENEFIT PLANS. Executive shall be eligible to participate in and receive benefits under all
retirement, health and welfare benefit plans, programs and arrangements which are

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	 	 	from time to time available to full-time senior executive officers of the Company in
accordance with the terms and conditions of such plans, programs and arrangements in effect
from time to time. Such benefit plans, programs and arrangements will include family
medical, family dental and family vision benefit plans and short-term and long-term
disability plans, and may include, without limitation, life insurance plans, accidental
death insurance plans, travel accident insurance plans, savings and retirement plans and
pension plans (all such benefit plans, the “Benefit Plans”). At his option, Executive may
pay directly the premiums for coverage under the above-mentioned disability plans and have
the Company pay to him, as additional income, an amount equal to the amount of those
premiums. Executive agrees to submit to a physical examination from time to time as
requested by the Company to facilitate Executive’s participation in one or more Benefit
Plans. The Company may terminate or reduce benefits under any such plans, programs or
arrangements to the extent such reductions apply uniformly to all full-time senior executive
officers of the Company, and Executive’s benefits shall be reduced or terminated
accordingly. The Company’s obligations under this Section 4(c) are expressly conditioned on
Executive and his family dependents taking all reasonable actions (including but not limited
to enrolling in all health and welfare benefit programs, plans and arrangements which are
from time to time available to the Company’s full-time senior executive officers as and when
Executive and his family dependents become eligible to participate in such programs, plans
and arrangements) and providing all information as the Company shall reasonably request and
as is necessary for the Company to fulfill such obligations.

	(d)	 	VACATION. In addition to normal statutory holidays recognized by the Company, Executive shall
be entitled to the greater of (a) four weeks of paid vacation for each fiscal year during the
Employment Term and (b) such other amount of paid vacation as may be afforded executive
officers under the Company’s policies in effect from time to time (“Vacation Time”).

	(e)	 	EXPENSE REIMBURSEMENT. The Company shall promptly reimburse Executive for travel and other
out-of-pocket expenses incident to his position in accordance with the Company’s customary
practices applicable to full-time senior executive officers. To the extent that these expense
reimbursements are reportable as taxable income, they will be grossed up to include the tax
due on them.

	(f)	 	FRINGE BENEFITS AND PERQUISITES. Executive shall be eligible to participate in and receive
benefits under all fringe benefit plans, practices, policies and programs of the Company to
the same extent, and subject to the same terms and conditions, as those arrangements are made
available to full-time senior executive officers of the Company.

	5.	 	TERMINATION OF EMPLOYMENT.

Executive’s employment under this Agreement may be terminated under any of the circumstances set
forth in this Section 5. Upon termination, Executive (or his beneficiaries or

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estate as the case may be) shall be entitled to receive the compensation and benefits described in
Section 6 and, if applicable, Section 7 below.

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

	(b)	 	TOTAL DISABILITY. The Company may terminate Executive’s employment hereunder, by written
notice to Executive delivered in accordance with Sections 5(g) and 16 hereof, upon a
determination pursuant to this Section 5(b) that Executive is “Totally Disabled.” For
purposes of this Agreement, For the purposes of this provision, “Totally Disabled” shall have
the same meaning as it has under the long-term disability policy covering Executive pursuant
to paragraph 4(c) herein. Executive’s receipt of disability benefits under the Company’s
long-term disability plan shall be deemed conclusive evidence of Total Disability for purposes
of this Agreement.

	(c)	 	TERMINATION BY THE COMPANY FOR CAUSE. The Company may terminate Executive’s employment
hereunder for “Cause” at any time, by written notice to Executive delivered in accordance with
Sections 5(g) and 15 hereof.

	 	(i)	 	For purposes of this Agreement, the term “Cause” shall mean any of the
following: (A) conviction of a crime (including conviction on a nolo contendre plea)
involving the commission by Executive of a felony or of a misdemeanor involving, in the
good faith judgment of the Board of Directors, fraud, dishonesty or moral turpitude;
(B) Executive’s deliberate and continual refusal to perform the duties and
responsibilities assigned to Executive under this Agreement (other than as a result of
vacation permitted under this Agreement, sickness, illness or injury); (C) fraud or
embezzlement by Executive, determined in accordance with the Company’s normal, internal
investigative procedures consistently applied; (D) gross misconduct or gross negligence
by Executive in connection with the business of the Company or an Affiliate (as defined
herein) unless Executive reasonably believed, in good faith, that his acts or omissions
were in or not opposed to the best interests of the Company (without intent of
Executive to gain therefrom, directly or indirectly, a profit to which he was not
legally entitled); or (E) any material breach by Executive of any of the provisions of
Section 8 of this Agreement or of any provisions of the Confidentiality and Proprietary
Information Agreement (as defined herein); provided, however, that the occurrence of an
act or omission covered by clauses (B), (D) or (E) of this paragraph 5(c)(i) shall not
constitute “Cause” if Executive remedies such act or omission within ten (10) business
days after delivery by the Company of written notice to Executive in accordance with
Section 15 hereof specifying in reasonable detail the facts and circumstances believed
by the Company to constitute such “Cause.”

	 	(ii)	 	Any determination of Cause under this Agreement shall be made by resolution
duly adopted by the affirmative vote of at least two-thirds of the members of the

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	 	 	 	Board of Directors (not including Executive if Executive is a member of the Board of
Directors) at a meeting of the Board of Directors called and held for that purpose;
provided that Executive shall have been given written notice of such meeting by
certified mail at least ten (10) business days prior to the meeting and shall have
been given the opportunity to be heard by the Board of Directors before such
resolution is passed. The failure by the Company to follow the procedures set forth
in this Section 5(c)(ii) shall result in the termination of the Executive’s
employment being deemed to be a termination by the Company without Cause.

	(d)	 	TERMINATION BY EXECUTIVE FOR GOOD REASON. Executive may terminate his employment hereunder
for Good Reason after delivery by Executive of written notice to the Company in accordance
with Sections 5(g) and 15 hereof within sixty (60) days after the occurrence of a Good Reason
Event (as hereinafter defined). For purposes of this Agreement, “Good Reason” means the
occurrence of any of the following events (each a “Good Reason Event”) without Executive’s
written consent during the Employment Term:

	 	(i)	 	A change in Executive’s responsibilities or titles or any other action by the
Company which represents a material diminution of Executive’s position, status or
authority, except in connection with or as a result of the termination of Executive’s
employment pursuant to any provision of this Section 5 (a “Dimunition”); provided,
however that such Dimunition shall not constitute “Good Reason” or a “Good Reason
Event” if the Company remedies such Dimunition within ten (10) business days after
delivery by Executive of written notice to the Company in accordance with Section 15
hereof specifying in reasonable detail the facts and circumstances believed by
Executive to constitute such Dimunition.
	 
	 	(ii)	 	A reduction by the Company in Executive’s Base Salary.
	 
	 	(iii)	 	A material breach by the Company of Section 4(c) hereof; provided, however
that such a breach shall not constitute “Good Reason” or a “Good Reason Event” if the
Company remedies such breach within ten (10) business days after delivery by Executive
of written notice to the Company in accordance with Section 15 hereof specifying in
reasonable detail the facts and circumstances believed by Executive to constitute a
material breach of Section 4(c).
	 
	 	(iv)	 	The failure by the Company to pay Executive any material amount of his Base
Salary, or any material amount of other compensation, that is due and payable under
this Agreement within ten (10) business days after Executive makes written demand for
such amount.

	 	(v)	 	The failure by the Company to enter into a written agreement with any entity
that purchases all or substantially all of the assets of the Company or any entity into
which the Company is merged (each a “Successor”) pursuant to which such

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	 	 	 	Successor agrees to assume all of the obligations of the Company under this
Agreement at and effective as of the closing of such sale of assets or merger.

	(e)	 	VOLUNTARY TERMINATION BY EXECUTIVE. Executive may terminate his employment hereunder without
Good Reason at any time during the Employment Term after providing thirty (30) days’ written
notice to the Company delivered in accordance with Sections 5(g) and 15 hereof.

	(f)	 	TERMINATION BY THE COMPANY WITHOUT CAUSE. At any time during the Employment Term, the
Company may terminate Executive’s employment hereunder without Cause by written notice to
Executive delivered in accordance with Sections 5(g) and 15 hereof. For purposes of this
Agreement, Executive’s employment will be deemed to have been terminated “Without Cause” if
Executive is terminated by the Company for any reason other than Death pursuant to Section
5(a), Total Disability pursuant to Section 5(b), or Cause pursuant to Section 5(c).

	(g)	 	NOTICE OF TERMINATION. Any termination of Executive’s employment by the Company for Cause
pursuant to Section 5(c), without Cause pursuant to Section 5(f), or as a result of
Executive’s Total Disability pursuant to Section 5(b), or by Executive for Good Reason
pursuant to Section 5(d), shall be communicated by Notice of Termination to the other party
hereto given in accordance with this Agreement. For purposes of this Agreement, a “Notice of
Termination” means a written notice which (i) indicates the specific termination provision in
this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive’s employment under the provision so
indicated, and (iii) specifies the effective date of termination, if such date is other than
the date of receipt of such notice (which effective date shall not be (A) less than ten (10)
business days after the giving of such notice in the case of termination by Executive for Good
Reason or (B) more than 15 days after the giving of such notice in all other cases). Any
voluntary termination of Executive’s employment by Executive pursuant to Section 5(e) shall be
communicated by written notice to the Company specifying (i) that Executive wishes to
terminate his employment with the Company pursuant to Section 5(e) hereof and (ii) indicating
the effective date of termination (which effective date shall not be less than 30 days after
the giving of such notice).

	6.	 	COMPENSATION AND BENEFITS 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)	 	COMPENSATION AND BENEFITS PAYABLE FOLLOWING TERMINATION FOR ANY REASON. The following
compensation and benefits shall be payable upon termination of Executive’s employment under
this Agreement for any reason:

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	 	(i)	 	Executive or his beneficiaries or estate shall be entitled to receive, within
fourteen (14) days after the effective date of termination, any accrued but unpaid Base
Salary for services rendered by Executive to the Company prior to the date of
termination, any accrued but unpaid expenses required to be reimbursed under this
Agreement, and cash compensation (at a rate per day equal to the Base Salary divided by
the number of business days in the relevant year) for any accrued Vacation Time that
remained unused by the Executive at the time of termination; and

	 	(ii)	 	Any earned benefits to which Executive (or his beneficiaries or estate) may be
entitled pursuant to the plans, policies and arrangements referred to in Sections 4(b),
4(c) and 4(g) hereof shall be determined and paid in accordance with the terms of such
plans, policies and arrangements. In the case of compensation previously deferred by
Executive, all amounts previously deferred and not yet paid by the Company shall be
paid to Executive (or his beneficiaries or estate) within fourteen (14) days after the
effective date of termination unless such payment is inconsistent with the terms of any
payment election made by Executive with respect to such deferred compensation.

	(b)	 	TERMINATION BY REASON OF DEATH. In the event that Executive’s employment is terminated by
reason of Executive’s death, the Company shall pay Executive’s estate the following
compensation and benefits in addition to the compensation and benefits provided for in Section
6(a) above:

	 	(i)	 	Executive’s estate shall be entitled to be paid:

	 	(A)	 	Executive’s Base Salary at the rate in effect immediately prior
to Executive’s date of death on the Company’s regular pay days for a period of
two (2) years from the effective date of termination as if his employment had
continued until the end of such two (2)-year period; and

	 	(B)	 	an aggregate amount equal to two (2) times the average of the
Annual Bonuses paid to Executive in the two (2) most recently completed fiscal
years preceding the effective date of termination, without regard to whether
the payment of all or any portion of such Annual Bonus has been deferred (such
average being hereinafter referred to as the “Bonus Average”), which shall be
paid in equal installments on the Company’s regular pay days over the course of
twenty-four (24) months from the effective date of termination; provided,
however, that if at the time of termination Executive has not been employed by
the Company for two fiscal years, the Bonus Average shall be deemed for all
purposes of this Agreement to equal Executive’s Target Bonus Rate multiplied by
his Base Salary at the rate in effect immediately prior to the effective date
of termination. The Company may purchase insurance to cover all or any part of
the obligations set forth in this Section 6(b)(i) and Executive agrees to
submit to a physical examination from time to time to facilitate the

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	 	 	 	procurement or renewal of such insurance. Any proceeds of such insurance
paid to Executive or his beneficiaries or estate shall be considered a
portion of the payments required to be made to Executive pursuant to this
Section 6(b)(i) and shall not be in addition thereto.

	 	(ii)	 	Executive’s dependents shall be entitled to continue to receive medical, dental
and vision insurance coverage at least equal in type and amount to that made available
to dependents of full-time senior executives of the Company immediately prior to
Executive’s death for a period of two (2) years from the effective date of termination,
or until Executive’s dependents become eligible for substantially equivalent
employer-provided health insurance benefits from any other person or business entity,
whichever occurs first. In the event that participation in any such plan, program or
arrangement of the Company is prohibited, the Company will arrange to provide benefits
substantially similar to those benefits which Executive’s dependents would have been
entitled to receive under such plan, program or arrangement for such period.

	 	(iii)	 	All of Executive’s then outstanding options to purchase shares of the
Company’s common stock shall be vested and exercisable in accordance with the terms of
the stock option plan of the Company pursuant to which such options were granted (the
“Governing Stock Option Plan”) as then in effect.

	(c)	 	TERMINATION BY REASON OF TOTAL DISABILITY. In the event that Executive’s employment is
terminated by reason of Executive’s Total Disability pursuant to Section 5(b) hereof, the
Company shall pay Executive the following compensation and benefits in addition to the
compensation and benefits provided for in Section 6(a) above:

	 	(i)	 	Subject to Section 6(c)(ii) below, Executive shall be entitled to be paid:

	 	(A)	 	his Base Salary at the rate in effect immediately prior to the
effective date of termination on the Company’s regular pay days for a period of
two (2) years from the effective date of termination as if his employment had
continued until the end of such two (2) year period; and

	 	(B)	 	an aggregate amount equal to two (2) times the Bonus Average,
which shall be paid in equal installments on the Company’s regular pay days
over the course of twenty-four (24) months from the effective date of
termination.

	 	(ii)	 	Whenever compensation is payable to Executive under Section 6(c)(i) during a
period in which he is partially or totally disabled, and such disability would (except
for the provisions hereof) entitle 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 Executive pursuant to any such

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	 	 	 	plan or program shall be considered a portion of the payments required to be made to
Executive pursuant to this Section 6(c) and shall not be in addition thereto. If
disability income is payable directly to Executive by an insurance company under the
terms of an insurance policy paid for by the Company, the amounts paid to Executive
by such insurance company shall be considered a portion of the payment to be made to
Executive pursuant to this Section 6(c) and shall not be in addition thereto.

	 	(iii)	 	Executive and his dependents shall be entitled to continue to receive medical,
dental and vision insurance coverage at least equal in type and amount to that made
available to full-time senior executives of the Company immediately prior to the
effective date of termination for a period of two (2) years from the effective date of
termination, or until Executive becomes eligible for substantially equivalent
employer-provided health insurance benefits from any other person or business entity,
whichever occurs first. In the event that participation in any such plan, program, or
arrangement of the Company is prohibited, the Company will arrange to provide benefits
substantially similar to those benefits which Executive would have been entitled to
receive under such plan, program, or arrangement, for such period.

	 	(iv)	 	All of Executive’s then outstanding options to purchase shares of the Company’s
common stock shall be vested and exercisable in accordance with the terms of the
Governing Stock Option Plan, as then in effect.

	(d)	 	TERMINATION FOR CAUSE. In the event that Executive’s employment is terminated by the Company
for Cause pursuant to Section 5(c) hereof, the Company shall not be obligated to make any
payments to Executive under this Agreement on or following the effective date of termination,
other than the compensation and benefits provided for in Section 6(a) above.

	(e)	 	VOLUNTARY TERMINATION BY EXECUTIVE. In the event that Executive terminates his employment
without Good Reason pursuant to Section 5(e) hereof, the Company shall not be obligated to
make any payments to Executive under this Agreement on or following the date of termination,
other than the compensation and benefits provided for in Section 6(a) above.

	(f)	 	TERMINATION BY THE COMPANY WITHOUT CAUSE OR BY EXECUTIVE FOR GOOD REASON. In the event that
Executive’s employment is terminated by the Company without Cause pursuant to Section 5(f)
hereof or by Executive for Good Reason pursuant to Section 5(d) hereof, the Company shall pay
to Executive the following compensation and benefits in addition to the compensation and
benefits provided for in Section 6(a) above:

	 	(i)	 	Executive shall be entitled to be paid:

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	 	(A)	 	his Base Salary at the rate in effect immediately prior to the
effective date of termination on the Company’s regular pay days for a period of
two (2) years from the effective date of termination as if his employment had
continued until the end of such two (2) year period; and

	 	(B)	 	an aggregate amount equal to two (2) times the Bonus Average,
which shall be paid in equal installments on the Company’s regular pay days
over the course of twenty-four (24) months from the effective date of
termination.

	 	(ii)	 	Executive and his dependents shall be entitled to continue to receive medical,
dental and vision insurance coverage at least equal in type and amount to that made
available to full-time senior executives of the Company immediately prior to the
effective date of termination for a period of two (2) years from the effective date of
termination, or until Executive becomes eligible for substantially equivalent
employer-provided health insurance benefits from any other person or business entity,
whichever occurs first. In the event that participation in any such plan, program or
arrangement of the Company is prohibited, the Company will arrange to provide benefits
substantially similar to those benefits which Executive would have been entitled to
receive under such plan, program or arrangement for such period.
	 
	 	(iii)	 	All of Executive’s then outstanding options to purchase shares of the
Company’s common stock shall be vested and exercisable in accordance with the terms of
the Governing Stock Option Plan, as then in effect;

provided,
however, that if the Company terminates Executive’s employment without Cause or
Executive terminates his employment with the Company for Good Reason within the one-year
period preceding, or within the two-year period following, a “Change of Control”, Executive
shall be paid the compensation and benefits provided for in Section 7 hereof rather than the
compensation and benefits provided for in this Section 6(f).

	(g)	 	NO OTHER BENEFITS OR COMPENSATION. Except as may be provided under this Agreement or under
the terms of any Compensation Plans or Benefit Plans in effect and applicable to Executive on
the effective date of termination, Executive shall have no right to receive any other
compensation, or to participate in any other plan, arrangement or benefit after such
termination and all other obligations of the Company and rights of Executive under this
Agreement shall terminate effective as of the effective date of termination.

	7.	 	CHANGE OF CONTROL.

	(a)	 	RESIGNATION FOLLOWING CHANGE OF CONTROL. If (i) the Company terminates Executive’s
employment without Cause or Executive terminates his

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	 	 	employment with the Company for Good Reason and (ii) a “Change of Control” has occurred
within the two-year period preceding, or within the one-year period following, the effective
date of termination, Executive shall be entitled to the compensation described in this
Section 7 in addition to the compensation and benefits provided for in Section 6(a) above
and in lieu of the compensation and benefits provided for in Section 6(f) above:

	 	(i)	 	a lump sum amount equal to two (2) times the sum of (A) and (B) below:

	 	(A)	 	his Base Salary at the rate in effect immediately prior to the
effective date of termination; and
	 
	 	(B)	 	the Bonus Average.

	 	(ii)	 	Executive and his dependents shall be entitled to continue to receive medical,
dental and vision insurance coverage at least equal in type and amount to that made
available to full-time senior executives of the Company immediately prior to the
effective date of termination for a period of two (2) years from the effective date of
termination, or until Executive becomes eligible for employer-provided health insurance
benefits from any other person or business entity (whether or not those health
insurance benefits are comparable to the health insurance benefits provided by the
Company), whichever occurs first. In the event that participation in any such plan,
program, or arrangement of the Company is prohibited, the Company will arrange to
provide benefits substantially similar to those benefits which Executive would have
been entitled to receive under such plan, program, or arrangement, for such period.

	 	(iii)	 	All of Executive’s then outstanding options to pursuant shares of the
Company’s common stock shall be vested and exercisable in accordance with the terms of
the Governing Stock Option Plan as then in effect.

	(b)	 	DEFINITION OF CHANGE OF CONTROL. For purposes of this Agreement, a “Change of Control” shall
be deemed to have occurred upon the happening of any of the following:

	 	(i)	 	the sale or lease of all or substantially all of the assets of the Company to
any other person or entity other than a direct or indirect wholly-owned subsidiary or
parent of the Company;

	 	(ii)	 	a merger, amalgamation, consolidation or other reorganization of the Company
with any other entity (other than a direct or indirect wholly-owned subsidiary or
parent of the Company) in which the Company is not the surviving entity or becomes
owned entirely by another entity, unless at least 50% of the outstanding voting
securities of the surviving or parent corporation, as the case may be, immediately
following such transaction are beneficially held by the same persons and/or entities
that beneficially held the outstanding voting securities of the

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	 	 	 	Company immediately prior to such transaction, and such outstanding voting
securities are beneficially held by such persons and/or entities in the same
proportion as such persons and/or entities beneficially held the outstanding voting
securities of the Company immediately prior to such transaction;

	 	(iii)	 	the acquisition of beneficial ownership, as such term is defined in the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) in a single
transaction or series of related transactions (by tender offer or otherwise), of more
than 50% of the voting securities of the Company by a single person or entity (other
than the Company or any affiliate (as such term is defined in Rule 12b-2 under the
Exchange Act) of the Company (each an “Affiliate”), a trustee or any other fiduciary or
committee of any employee benefit plan of the Company, or any corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of the stock of the Company) or “group” within the
meaning of Section 13(d)(3) of the Exchange Act, whether through the acquisition of
previously issued and outstanding voting securities or of voting securities that have
not been previously issued, or any combination thereof;
	 
	 	(iv)	 	the voluntary or involuntary dissolution, liquidation or winding up of the
Company, or the adoption of any resolution with respect thereto; or
	 
	 	(v)	 	the individuals who constituted the Board of Directors as of the Effective Date
(the “Incumbent Board”) ceasing 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 purposes of this Agreement, a member of the Incumbent
Board; and provided further that, notwithstanding anything herein to the contrary, a
Change of Control shall not be deemed to have occurred in connection with (i) any
public offering of the common stock of the Company for cash; (ii) any transaction with
an entity or group that includes, is affiliated with or is wholly or partially
controlled by, one or more executive officers of the Company in office immediately
prior to the transaction that would otherwise constitute a Change of Control; (iii) any
capital raising transaction (including any investment by one or more private equity
funds) for the purpose of financing acquisitions specifically identified by the Board
of Directors of the Company; or (iv) the U.S. Reorganization Transaction.

	(c)	 	CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY. In the event that any portion of the payments or
benefits provided to Executive under this Agreement or pursuant to any other plan, arrangement
or agreement between Executive and the Company or any Affiliate thereof (collectively, “Total
Payments”) would be subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Code
or any similar tax that may hereafter be imposed, then Executive shall be entitled to receive
an additional payment (the “Gross-up Payment”) in an amount which, when combined with the net

-12-

 

	 	 	amount of the Total Payments retained by Executive after giving effect to the application of
the Excise Tax and all other applicable taxes on the Total Payments (including any interest
or penalties imposed with respect to such taxes), will result in receipt by Executive of a
Gross-up Payment equal to the Excise Tax imposed upon the Total Payments.

	 	(i)	 	Determination by Accounting Firm. Subject to the provisions of Section
7(c)(ii) below, all determinations required to be made under this Section 7(c),
including whether a Gross-up Payment is required, the amount of the Gross-Up Payment
and the assumptions to be utilized in arriving at such determination, shall be made by
the Company’s independent auditors or such other certified public accounting firm
reasonably acceptable to Executive as may be designated by the Company (the “Accounting
Firm”). The Accounting Firm shall provide detailed calculations supporting the
Gross-up Payment to the Company and Executive. All fees and expenses of the Accounting
Firm shall be paid solely by the Company. Any Gross-Up Payment, as determined pursuant
to this Section 7(c), shall be paid by the Company to Executive not later than the due
date for the payment of any Excise Tax. Any determination by the Accounting Firm shall
be binding upon the Company and Executive. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have
been made by the Company should have been made (“Underpayment”), consistent with the
calculations required to be made hereunder. In the event that the Company exhausts its
remedies pursuant to Section 7(c)(ii) and Executive thereafter is required to make a
payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the
Company to or for Executive’s benefit.

	 	(ii)	 	The Company’s Right to Contest Excise Tax. Executive agrees to notify the
Company in writing of any claim 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 ten (10) business days after
Executive is informed 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.
Executive shall not pay such claim prior to the expiration of the 30-day period
following the date on which Executive 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 Executive in writing prior to the expiration of such period
that it desires to contest such claim, Executive agrees to:

	 	(A)	 	give the Company any information reasonably requested by the
Company relating to such claim,

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	 	(B)	 	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 reasonably selected by the Company;
	 
	 	(C)	 	cooperate with the Company in good faith in order to
effectively contest such claim, and
	 
	 	(D)	 	permit the Company to participate in any proceedings relating
to such claim;

provided, however, that the Company agrees to bear and pay directly all
costs and expenses (including additional interest and penalties) incurred in
connection with such contest and shall indemnify and hold 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
7(c)(ii), the Company shall control all proceedings taken in connection with such
contest and, at its sole option, may pursue or forego any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in respect
of such claim and may, at its sole option, either direct Executive to pay the tax
claimed and sue for a refund or contest the claim in any permissible manner, and
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 Executive to pay such claim and sue for a refund, the
Company shall advance the amount of such payment to Executive, on an interest-free
basis, and shall indemnify and hold 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 Executive’s taxable year with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount. Furthermore, the Company’s control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and 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.

	 	(iii)	 	Repayment to the Company. If, after the receipt by Executive of an amount
advanced by the Company pursuant to Section 7(c)(ii), Executive becomes entitled to
receive any refund with respect to such claim, Executive shall promptly pay to the
Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). Executive shall be entitled to deduct from any
payment made to the Company pursuant to the previous sentence

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	 	 	 	the amount of any taxes that Executive previously paid on the amount of such
payment. If, after the receipt by Executive of an amount advanced by the Company
pursuant to Section 7(c)(ii), a determination is made that Executive is not entitled
to any refund with respect to such claim and the Company does not notify 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.

	(d)	 	Notwithstanding anything herein to the contrary, to the extent that Executive has received
payments of Base Salary pursuant to Section 6(f)(i) hereof at a time when a “Change of
Control” occurs, such payments shall be deducted from the lump sum payment required to be made
to Executive pursuant to Section 7(a)(i) hereof.

	8.	 	RESTRICTIVE COVENANTS

	(a)	 	COMPETITIVE ACTIVITY. Executive covenants and agrees that at all times during Executive’s
employment with the Company, and during the Non-Compete Period (as defined below), Executive
will not, acting alone or in conjunction with others, without the prior written consent of the
Company, directly or indirectly, engage or participate in, assist, render services to or for,
or have any active interest or involvement in, whether as an employee, principal, agent,
consultant, creditor, lender, advisor, employer, officer, director, stockholder (excluding
holdings by Executive of up to 3% of the voting stock of any corporation subject to the
periodic reporting requirements of the Exchange Act), partner, proprietor or in any other
individual or representative capacity in or with, any person, entity or business which
competes, directly or indirectly, with the Company or any Affiliate in any of the business
areas or territories in which the Company or any Affiliate then conducts business or with any
development opportunity being pursued by the Company during the Non-Compete Period. (b)
NON-SOLICITATION. Executive covenants and agrees that at all times during Executive’s
employment with the Company, and during the Non-Compete Period, Executive will not, without
the prior written consent of the Company, directly or indirectly (i) induce, solicit or entice
any customer of the Company or any customer of any Affiliate to patronize any person, business
or entity which competes, directly or indirectly, with the Company or such Affiliate in any of
the business areas or territories in which the Company or such Affiliate then conducts
business; (ii) canvass, solicit or accept any business from any customer of the Company or any
customer of any Affiliate (other than in connection with the performance by Executive of his
duties and responsibilities for the Company in accordance with this Agreement) in any of the
business areas or territories in which the Company or any Affiliate of the Company then
conducts business; (iii) request or advise any customer of the Company or any customer of any
Affiliate to withdraw, curtail or cancel such customer’s business with the Company or such
Affiliate in any of the business areas or territories in which the Company or any Affiliate of
the Company then conducts business; (iv) contact, communicate with or solicit any prospect
that the Company is

-15-

 

	 	 	actively pursuing or any prospect that any Affiliate is actively pursuing (other than in
connection with the performance by Executive of his duties for the Company in accordance
with this Agreement); (v) disclose to any other person, entity or business the names or
addresses of any customer or acquisition prospect of the Company or any customer or
acquisition prospect of any Affiliate (other than as required in connection with the
performance by Executive of his duties for the Company in accordance with this Agreement);
(vi) cause, solicit, entice or induce any employee of the Company or any employee of any
Affiliate to leave the employ of the Company or such Affiliate, or to accept employment
with, or compensation from, Executive or any person, entity or business (other than the
Company or any Affiliate) with which Executive is affiliated or by whom Executive is
employed; or (vii) use any customer lists or customer leads, mail, telephone numbers,
printed material or other information obtained from the Company or any Affiliate or any
employee of any of the foregoing (other than in connection with the performance by Executive
of his duties for the Company in accordance with this Agreement).

	(c)	 	NON-DISPARAGEMENT.

	 	(i)	 	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 or any Affiliate
or any member of management of the Company or any Affiliate.

	 	(ii)	 	The Company covenants and agrees that it 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 or reputation of Executive.

	(d)	 	PROTECTED INFORMATION. Executive recognizes and acknowledges that Executive has had and will
continue to have access to various confidential and proprietary information concerning the
Company and its Affiliates which is of a special and unique value. As a condition to
commencement of Executive’s employment hereunder, Executive shall execute a Confidentiality
and Proprietary Rights Agreement in substantially the form of Exhibit C attached hereto (the
“Confidentiality and Proprietary Rights Agreement”). Any breach by Executive of the
Confidentiality and Proprietary Rights Agreement shall be considered a breach of this
Agreement.

	(e)	 	NON-COMPETE PERIOD. For purposes of this Agreement, the term “Non-Compete Period” shall have
the following meanings:

	 	(i)	 	in the event (A) Executive’s employment hereunder is terminated by the Company
without Cause pursuant to Section 5(f), or by Executive for Good

-16-

 

	 	 	 	Reason pursuant to Section 5(d), and (B) a Change of Control did not occur within
the two-year period preceding, and does not occur within the one-year period
following, the effective date of termination, the Non-Compete Period shall mean the
period beginning on the effective date of termination and ending on the second
anniversary of the effective date of termination;

	 	(ii)	 	in the event that (A) Executive’s employment hereunder is terminated by the
Company without Cause pursuant to Section 5(f), or by Executive for Good Reason
pursuant to Section 5(d), and (B) a Change of Control occurred within the two-year
period preceding the effective date of termination, there shall be no Non-Compete
Period;
	 
	 	(iii)	 	in the event (A) Executive’s employment hereunder is terminated by the Company
without Cause pursuant to Section 5(f), or by Executive for Good Reason pursuant to
Section 5(d), and (B) a “Change of Control” occurs within the one-year period following
the effective date of termination, the Non-Compete Period shall mean the period
beginning on the effective date of termination and ending on the effective date of the
“Change of Control”;
	 
	 	(iv)	 	in the event Executive’s employment hereunder is terminated by Executive
voluntarily pursuant to Section 5(e), or by the Company with Cause pursuant to Section
5(c), the Non-Compete Period shall mean the period beginning on the effective date of
termination and ending on the first anniversary of the effective date of termination;
and
	 
	 	(v)	 	in the event Executive’s employment hereunder is terminated by the Company upon
Death of Executive pursuant to Section 5(a), or upon the Total Disability of Executive
pursuant to Section 5(b), there shall be no Non-Compete Period.

	9.	 	ENFORCEMENT OF COVENANTS.

	(a)	 	TERMINATION OF EMPLOYMENT AND FORFEITURE OF COMPENSATION. Notwithstanding anything in this
Agreement to the contrary, in the event that the Board of Directors or a duly authorized
committee thereof determines in its good faith judgment that Executive has violated Sections
8(a) or 8(b) hereof, the Company shall have the right to suspend or terminate any or all
remaining payments or benefits payable pursuant to Section 6 and/or 7 of this Agreement. Such
suspension or termination of benefits shall be in addition to and shall not limit any and all
other rights and remedies that 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 with respect to which the
Company’s remedy at law for damages will be inadequate. Therefore, in the event of a breach
of the covenants set forth in Section 8 by Executive or if the Company has reasonable grounds
to believe that a breach by Executive of the covenants set forth in

-17-

 

	 	 	Section 8 is imminent, Executive and the Company agree that the Company shall be entitled to
the following particular forms of relief, in addition to remedies otherwise available to it
at law or in equity; (i) 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, in the event
the Company prevails on the merits after all available appeals have been exhausted (ii)
recovery of all reasonable sums expended and costs, including reasonable attorney’s fees,
incurred by the Company to enforce the covenants set forth in Section 8.

	(c)	 	SEPARABILITY OF COVENANTS. The covenants contained in Section 8 hereof constitute a series
of separate covenants, one for each applicable State in the United States and the District of
Columbia, and one for each province and Territory in Canada. 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.	 	MITIGATION OF DAMAGES; ATTORNEY’S FEES

          (a) Executive shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment.

          (b) If any legal action is filed by either party to enforce or interpret any of the provisions
of this Agreement, the non-prevailing party shall pay to the prevailing party, in addition to any
other amounts awarded in the action, all reasonable attorney’s fees and other fees and costs
incurred by the prevailing party in connection with such legal action, the amount of which shall be
fixed by the court hearing such action and made a part of any judgment rendered.

	11.	 	WITHHOLDING OF TAXES.

The Company may withhold all legally required taxes from any compensation and benefits payable
under this Agreement.

	12.	 	ASSIGNMENT.

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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
permitted assigns. The rights, benefits and obligations of Executive under this Agreement are
personal to Executive and no such right, benefit or obligation shall be subject to voluntary or
involuntary alienation, assignment or transfer; provided, however, that nothing in this Section 12
shall preclude Executive from designating a beneficiary or beneficiaries to receive any benefit
payable on his death. The Company shall require any Successor (whether by purchase of all or
substantially all of the assets of the Company, merger of the Company into another entity, or
otherwise) to assume and agree to perform this Agreement in the same manner and to the same extent
that the Company would have been required to perform if no such succession had taken place. Upon
any such assignment, all references herein to the Company shall be deemed to refer to such
assignee.

	13.	 	ENTIRE AGREEMENT; AMENDMENT.

This Agreement, together with all schedules, exhibits and other documents referred to herein, shall
supersede any and all existing oral or written agreements, representations, or warranties between
Executive and the Company relating to the terms of Executive’s employment by the Company. This
Agreement may not be amended, nor any provision waived, except by a written instrument signed by
the party against whom such amendment or waiver is sought to be enforced.

	14.	 	GOVERNING LAW; JURISDICTION.

This Agreement shall be governed by and construed in accordance with the internal substantive laws
of the State of Delaware, without giving effect to the conflict of law principles thereof. The
parties agree that all disputes, legal actions, suits and proceedings arising out of or relating to
this Agreement or Executive’s employment with the Company must be brought exclusively in a federal
district court or state court of competent jurisdiction located in the State of Delaware. Each
party hereby irrevocably consents and submits to the exclusive jurisdiction of such courts. No
legal action, suit or proceeding with respect to this Agreement or Executive’s employment with the
Company may be brought in any other forum. Each party hereby irrevocably waives all claims of
immunity from jurisdiction and any right to object on the basis that any dispute, action, suit or
proceeding brought in any such court has been brought in an improper or inconvenient forum or
venue.

	15.	 	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 if delivered personally, mailed by
registered or certified mail (return receipt requested), or by confirmed facsimile to those listed
below at their following respective addresses or at such other address as each may specify by
notice to the others:

-19-

 

     To the Company:

1122 International Blvd., Suite 601

Burlington, Ontario L7L 6Z8

Attention: General Counsel

To Executive: At the address for Executive set forth on the signature page below.

	16.	 	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.
The waiver by any party hereto of a breach of any provision of this Agreement shall neither
operate nor be construed as a general waiver or as a specific waiver of any subsequent breach
by any party, unless otherwise expressly provided in such waiver.

	(b)	 	SEPARABILITY. Subject to Section 9 hereof, if any term or provision of this Agreement or
application thereof to anyone or under any circumstances shall be determined to be invalid,
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..

	(f)	 	RELEASE. Notwithstanding anything herein to the contrary, the Company shall not be required
to make any of the payments, or provide any of the benefits, to the Executive pursuant to
Sections 6 or 7 hereof unless and until Executive executes and delivers a release of all
claims arising out of this Executive Employment Agreement through the date of the release, but
excluding claims for indemnification from the Company under the Indemnification Agreement
attached hereto as Exhibit A, local, state or federal statutory or constitutional claims, or
other claims not arising under this Executive Employment Agreement.

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	(g)	 	SURVIVAL. Notwithstanding anything in this Agreement to the contrary, the provisions of
Sections 8, 9, 10, 14, 15 and 16 shall survive any termination of Executive’s employment in
accordance with their respective terms.

[SIGNATURE PAGES TO FOLLOW]

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year
first above written.

THE COMPANY:

WASTE SERVICES, INC.

	 	 	 	 	 
	By:  	/s/ Edwin D. Johnson  	 	 
	 	Name:  	Edwin D. Johnson 	 
	 	Title:  	Executive Vice President and Chief Financial Officer
	 
	 
	Date: July 22, 2008 
	 
	EXECUTIVE:

 	 	 
	By:  	/s/ Brian A. Goebel
 	 	 
	 	Brian A. Goebel 	 	 
	 
	Date: July 22, 2008 

-22-EX-10.1  2008 Equity Incentive Plan

Exhibit 10.1

Royal Caribbean Cruises Ltd.

2008 Equity Incentive Plan

Table of Contents

	 	 	 	 	 	 	 
	Section	 	 	Page
	1.

	 	Purpose and Effectiveness
	 	 	1	 
	2.

	 	Definitions and Rules of Construction
	 	 	2	 
	3.

	 	Eligibility and Participation
	 	 	5	 
	4.

	 	Stock Subject to Plan
	 	 	5	 
	5.

	 	Forms and Terms of Awards Under the Plan
	 	 	6	 
	6.

	 	Exercises of Stock Options
	 	 	13	 
	7.

	 	Events Affecting Plan Reserve or Plan Awards
	 	 	14	 
	8.

	 	Administration
	 	 	17	 
	9.

	 	Government Regulations and Registration of Shares
	 	 	18	 
	10.

	 	Miscellaneous Provisions
	 	 	19	 
	11.

	 	Amendment and Termination of this Plan
	 	 	20	 

Section 1. Purpose and Effectiveness

     (A) The purpose of this 2008 Equity Incentive Plan (the “Plan”) is to promote the success of
Royal Caribbean Cruises Ltd., a Liberian corporation (the “Company”), by providing a method whereby
both employees and directors of the Company and its Affiliates may be encouraged to increase their
proprietary interest in the Company’s business. By offering incentive compensation opportunities
that are based on the Company’s common stock, the Plan will motivate Participants to achieve
long-range goals, further identify their interests with those of the Company’s other shareholders,
and promote the long-term financial interest of the Company. The Plan is further intended to aid
in attracting and retaining persons of exceptional ability and leadership qualities to become
officers, employees, and directors of the Company and its Affiliates.

     (B) The Plan was adopted by the Board of Directors on March 7, 2008 and shall be subject to
approval at the 2008 annual meeting of the Company’s shareholders. Any Awards granted under the
Plan prior to such shareholder approval shall be conditioned upon such shareholder approval and
shall be null and void if such approval is not obtained.

     (C) No Awards may be granted under the Plan following the 2018 annual meeting of the Company’s
shareholders.

-1-

 

Section 2. Definitions and Rules of Construction

     (A) Defined Terms. Capitalized terms not defined elsewhere in the Plan shall have the
following meanings (whether used in the singular or plural):

     (i) “Affiliate” means any business entity, regardless of whether organized as
a corporation, limited liability company, partnership or any other legal form, in
which the Company has (i) an ownership of 50% or greater, or (ii) in the sole
discretion of the Committee, a significant interest.

     (ii) “Agreement” means a written instrument, which need not be executed by
the Participant, that sets out the terms of the grant of an Award, as any such
Agreement may be supplemented or amended from time to time.

     (iii) “Award” means any award or benefit granted under the Plan, as further
defined in Section 5(A) of the Plan.

     (iv) “Beneficiary” means the individual(s) designated by the Participant to
succeed to his/her rights in all Awards granted to him/her under the Plan in the
eventuality of his/her death or Disability.

     (v) “Board” means the Board of Directors of the Company.

     (vi) “Code” means the Internal Revenue Code of 1986, as amended from time to
time, or any successor statute or statutes thereto. Reference to any specific
Code section shall include any successor section.

     (vii) “Committee” means the Compensation Committee of the Board.

     (viii) “Company” means Royal Caribbean Cruises Ltd., a Liberian corporation
and any successor entity.

     (ix) “Date of Grant” means the date on which the Committee takes the
corporate actions necessary to fix the major terms of an Award to a specified
Eligible Individual, including, in the case of an Option, the number of Shares
subject to the Option and the applicable Exercise Price.

     (x) “Director” means a duly elected or appointed member of the Board or the
Board of Directors of an Affiliate.

     (xi) “Disability” means permanent and total disability as defined in Section
22(e) of the Code.

     (xii) “Eligible Individual” means an Employee or Director who is described in
Section 3(A) of the Plan.

-2-

 

     (xiii) “Employee” means an individual who is employed by the Company or any
Affiliate.

     (xiv) “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time, or any successor statute or statutes thereto.
Reference to any specific ERISA section shall include any successor section.

     (xv) “Exchange Act” means the Securities Exchange Act of 1934, as amended
from time to time, or any successor statute or statutes thereto. Reference to any
specific Exchange Act section shall include any successor section.

     (xvi) “Executive Officer” means executive officer as defined in Rule 3b-7
under the Exchange Act, provided that, if the Board has designated the executive
officers of the Company for purposes of reporting under the Exchange Act, the
designation by the Board shall be conclusive for purposes of the Plan.

     (xvii) “Exercise Price” means the price that must be paid by an Optionee upon
exercise of an Option to purchase a share of Stock.

     (xviii) “Fair Market Value” of a Share of Stock as of any date means the mean
between the highest and lowest reported sale prices of the Stock (i) on the date
on the principal exchange or market on which the Stock is then listed or admitted
to trading, or (ii) if the day is not a date on which such exchange or market is
open, the last preceding date on which there was a sale of such Stock on such
exchange or market, or (iii) as otherwise determined by the Committee if the Stock
is not listed on an Exchange.

     (xix) “Option” means a right to purchase from the Company a stated number of
Shares at an Exercise Price and for a period of time established by the Committee.

     (xx) “Optionee” means an Eligible Individual who has received an Option under
this Plan, for the period of time during which such Option is held in whole or in
part.

     (xxi) “Option Shares” means, with respect to any Option granted under this
Plan, the Stock that may be acquired upon the exercise of such Option.

     (xxii) “Participant” means an Eligible Individual who has received an Award
under this Plan.

     (xxiii) “Plan” means this Royal Caribbean Cruises Ltd. 2008 Equity Incentive
Plan, as amended from time to time.

-3-

 

     (xxiv) “Secretary” means the secretary of the Company or his/her designee.

     (xxv) “Settlement Date” means the date on which Stock, cash, cash
equivalents, or any combination thereof are transferred by the Company to a
Participant with respect to, and in settlement of, a prior contractual commitment
made by the Company to such Participant under the Plan in the form of Restricted
Stock Units, Stock Appreciation Rights or Performance Shares.

     (xxvi) “Shares” or “Stock” mean shares of the common stock of the Company,
par value $.01, subject to any adjustments made under Section 7 of the Plan or by
operation of law.

     (xxvii) “Subsidiary” of the Company means any present or future subsidiary
(as that term is defined in Section 424(f) of the Code) of the Company An entity
shall be deemed a subsidiary of the Company for purposes of this definition only
for such periods as the requisite ownership or control relationship is maintained.

     (xxviii) “Substitute Awards“ shall mean Awards granted in assumption of, or
in substitution for, outstanding awards previously granted by a company acquired
by the Company or with which the Company combines.

     (xxix) “Termination of Service”, “Terminate” or “Termination” occurs when a
Participant ceases to be an Employee of, or ceases to be a Director of, the
Company and its Affiliates, as the case may be, for any reason.

     (xxx) “Vest”, “Vested”, and “Vesting” means, with respect to any portion of
an Award, that the Award will not be forfeited by the Participant pursuant to the
provisions of this Plan in the event the Participant Terminates Service with the
Company or any Affiliate.

     (xxxi) “Vesting Date” with respect to any Award granted hereunder means the
date on which such Award becomes Vested, as designated in or determined in
accordance with the Plan and with the Agreement with respect to such Award. If
more than one Vesting Date is designated for an Award, reference in the Plan to a
Vesting Date in respect of such Award shall be deemed to refer to each part of
such Award and the Vesting Date for such part.

     (B) Rules of Construction. Where the context permits, words in any gender shall
include the other gender, words in the singular shall include the plural, and the plural shall
include the singular.

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Section 3. Eligibility and Participation

     (A) The persons who shall be eligible to participate in the Plan and to receive Awards shall
be such Employees (including officers) and Directors as the Committee, in its sole discretion,
shall select. Awards may be made to Eligible Individuals who hold or have held Awards under this
Plan or any similar plan or other awards under any other plan of the Company. Holders of Options
and other types of Awards granted by a company acquired by the Company or with which the Company
combines are eligible for grant of Substitute Awards hereunder. Any member of the Committee shall
be eligible to receive Awards while serving on the Committee.

     (B) Awards may be granted by the Committee at any time and from time to time to new
Participants, or to then Participants, or to a greater or lesser number of Participants, and may
include or exclude previous Participants, as the Committee shall determine. All Awards made to
members of the Board shall be recommended by the Committee and approved by the full Board. Except
as required by this Plan, Awards granted at different times need not contain similar provisions.
The Committee’s determinations under the Plan (including without limitation, determinations of
which individuals, if any, are to receive Awards, the form, amount and timing of such Awards, the
terms and provisions of such Awards and the agreements evidencing same) need not be uniform and may
be made by it selectively among individuals who receive, or are eligible to receive, under the
Plan.

Section 4. Stock Subject to Plan

     (A) Subject to the following provisions of this Section 4 and to the provisions of Section 7,
the maximum number of Shares with respect to which any Awards may be granted, including Awards of
Incentive Options as defined in Section 5(A)(i), during the term of the Plan shall be 5,000,000.
During any calendar year, no one individual shall be granted, under this Plan, Awards with respect
to more than 500,000 Shares. Shares underlying Substitute Awards shall not reduce the number of
Shares remaining available for issuance hereunder.

     (B) During the term of this Plan, the Company will at all times reserve and keep available the
number of Shares that shall be sufficient to satisfy the requirements of this Plan. Shares will be
made available from the currently authorized but unissued shares of the Company or from shares
currently held or subsequently reacquired by the Company as treasury shares, including shares
purchased in the open market or in private transactions.

     (C) The grant of any Award hereunder shall count, equal in number to the Shares represented by
such Award as determined under Section
4(A), towards the share maximum indicated in Section 4(A).
To the extent that (i) any outstanding Option for any reason expires, is terminated, forfeited or
canceled without having been exercised, or if any other Award is forfeited or otherwise does not
result in the delivery of Shares by the Company, and (ii) any Shares covered by an Award are not
delivered because the Award is settled in cash, such Shares shall be deemed to have not been
delivered and shall be restored to the share maximum.

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Section 5. Forms and Terms of Awards Under the Plan

     (A) In General. The Committee may grant any of the following types of Awards, either
singly or in combination with other Awards:

     (i) Incentive Stock Options. An incentive stock option (an “Incentive Option”) is any
Option that complies with the requirements of Section 422 of the Code.

     (ii) Nonqualified Stock Options. A nonqualified stock option (a “Nonqualified
Option”) is any Option that is not an Incentive Option.

     (iii) Stock Appreciation Rights. A Stock Appreciation Right is an Award in the form
of a right to receive, upon surrender of the right, but without other payment an amount
based on appreciation in the value of Stock over a base price established in the Award
payable in Stock, at times and upon conditions (which may include a Change of Control), as
may be approved by the Committee.

     (iv) Stock Awards. Stock awards may be in the form of Shares not subject to any
restrictions or limitations imposed by this Plan (“Bonus Stock”), or of Restricted Stock.
Restricted Stock is an Award of Shares that is issued to a Participant such that the
Participant is thereupon the legal owner of such Shares with all of the attendant rights
and privileges of ownership, but remains subject to a risk of forfeiture of such ownership
back to the Company for a period of time specified on the Date of Grant. Such forfeiture
may be conditioned on the continued performance of services or the achievement of
individual, divisional, or corporate goals. Restricted Stock will also be subject to
restrictions on transfer and such other restrictions on incidents of ownership as the
Committee may determine, for the same period of time as the risk of forfeiture.

     (v) Restricted Stock Units. A Restricted Stock Unit is an Award payable in cash or
Stock and represented by a bookkeeping credit, in which both the number of Shares and the
Settlement Date (subject to any subsequent deferral election by the Participant) are fixed
on the Date of Grant. The value of each Restricted Stock Unit equals the Fair Market Value
of a share of Stock, as such value may change up to the date the Restricted Stock Unit is
settled. Further, the settlement of the Award may be made contingent, in the sole
discretion of the Committee, upon (A) solely continued service, or (B) other limitations or
restrictions. Restricted Stock Units are not outstanding shares of Stock and do not
entitle a Participant to voting or other rights or dividends with respect to Stock, unless
and until actually paid out in the form of Stock. The restrictions and limitations imposed
on Restricted Stock Unit Awards may vary among Participants and from year to year, and the
Committee may assign varying titles to different forms of Restricted Stock Units.

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     (vi) Performance Shares. A Performance Share is a variable Award payable in cash or
Stock and represented by a bookkeeping credit, in which the number of Shares (or value
thereof) to be transferred to the Participant at the end
of a performance measurement period will be a function of both continued service and
the relevant achievement of individual, divisional or corporate goals. The value of each
Performance Share equals the Fair Market Value of a share of Stock, as such value may
change up to the date the Performance Share is settled.

     (B) Provisions Applicable to All Forms of Awards.

     (i) Subsequent to the grant of any Award, the Committee may, at any time before the
complete expiration of such Award, accelerate the time or times at which such Award may
become nontransferable, exercisable and/or settled, in whole or in part.

     (ii) To the extent that the Company is required to withhold any Federal, state or
other taxes in respect of any compensation income realized by the Participant in respect of shares acquired pursuant to an Award, or in respect of the exercise, settlement, or vesting
of any such Awards, then the Company shall deduct from either Shares or any payments of any
kind otherwise due to such Participant the aggregate amount of such Federal, state or other
taxes required to be so withheld. If such payments are insufficient to satisfy such
Federal, state or other taxes, then such Participant will be required to pay to the
Company, or make other arrangements satisfactory to the Company regarding payment to the
Company of, the aggregate amount of any such taxes. All matters with respect to the total
amount of taxes to be withheld in respect of any such compensation income shall be
determined by the Company in its sole discretion.

     (C) Provisions Applicable to Options and Stock Appreciation Rights.

     (i) Subject to the limitations of the Plan, the Committee shall designate from time to
time those Eligible Individuals to be granted Options, the time when each Option shall be
granted, the number of Shares subject to such Option, whether such Option is an Incentive
Option or a Nonqualified Option, and the Exercise Price of the Option Shares. Options
shall be evidenced by Agreements in such form and containing such terms and provisions not
inconsistent with the provisions of the Plan as the Committee may from time to time
approve. Each Optionee shall be notified of such grant and a written Agreement shall be
delivered by the Company to the Optionee. Subject to the other provisions of the Plan, the
same person may receive Incentive Options and Nonqualified Options at the same time and
pursuant to the same Agreement, provided that Incentive Options and Nonqualified Options
are clearly designated as such.

     (ii) Option Agreements may provide that the grant of any Option under the Plan, or
that Stock acquired pursuant to the exercise of any Option, shall be subject to such other
conditions (whether or not applicable to an Option or Stock received by any other Optionee)
as the Committee determines appropriate, including, without limitation, provisions
conditioning exercise upon the occurrence of certain events or performance or the passage
of time,

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provisions to assist the Optionee in financing the purchase of Stock through the
exercise of Options, provisions for forfeiture, restrictions on resale or other disposition
of shares acquired pursuant to the exercise of Options, provisions conditioning the grant
of the Option or future Options upon the Optionee retaining ownership of Shares acquired
upon exercise for a stated period of time, and provisions to comply with federal and state
securities laws and federal and state income tax and other payroll tax withholding
requirements.

     (iii) The price at which Shares may be purchased upon exercise of an Option shall be
fixed by the Committee on the Date of Grant and may not be less than 100% of the Fair
Market Value of the Option Shares on the Date of Grant or, if specified by the Committee,
on a date subsequent to the Date of Grant that is identified as the effective date of the
Award. All Options shall specify the term during which the Option may be exercised, which
shall be in all cases ten years or less.

     (iv) No Option may be exercised in part or in full before the date(s) therefore set
forth in its terms, other than in the event of acceleration as provided in Section 7. No
Option may be exercised after the Option expires by its terms as set forth in the
applicable Agreement. In the case of an Option that is exercisable in installments,
installments that are exercisable and not exercised shall remain exercisable during the
term of the Option. The grant of an Option shall impose no obligation on the Optionee to
exercise such Option.

     (v) Subject to the terms of the Plan and the applicable Agreement, Options and Stock
Appreciation Rights shall be subject to vesting during a period of at least one year
following the date of grant, provided that Options and Stock Appreciation Rights may vest
in part on a pro-rata basis prior to the expiration of any vesting period, and provided,
further, that up to five percent of Shares available for grant under this Plan may be
granted without regard to the requirements of this sentence.

     (vi) No Option shall be transferable other than by will or the laws of descent and
distribution, other than pursuant to an order issued by a court of competent jurisdiction
in connection with the divorce or bankruptcy of the Participant. During the lifetime of
the Optionee, the Option shall be exercisable only by such Optionee or his/her
court-appointed legal representative or transferee. Notwithstanding anything herein to the
contrary, the Committee may, in its sole discretion, provide in the applicable Agreement
evidencing a Nonqualified Option that the Optionee may transfer, assign or otherwise
dispose of an option (i) to his/her spouse, parents, siblings and lineal descendants, (ii)
to a trust for the benefit of the Optionee and any of the foregoing, or (iii) to any
corporation or partnership controlled by the Optionee, subject to such conditions or
limitations as the Committee may establish to ensure compliance with any rule promulgated
pursuant to the Exchange Act, or for other purposes. The terms applicable to the assigned
Option shall be the same as those in effect for the Option immediately prior to such
assignment and shall be set forth in such

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documents issued to the assignee as the Company may deem appropriate. If an Optionee
has a Termination of Service by reason of his/her death or Disability prior to the
expiration date of his/her Option, or if an Optionee dies subsequent to his/her Termination
of Service on account of such Disability but prior to the expiration date of his/her
Option, and in either case all or some portion of such Option is Vested and exercisable
pursuant to the terms of this Plan and of the Option Agreement, such Option may be
exercised by the Optionee or by the Optionee’s estate, personal representative or
beneficiary, as the case may be, at any time prior to the earlier of (i) one year following
the date of the Optionee’s death or disability, or (ii) the expiration date of such Option.

     (vii) An Optionee or a transferee of an Option shall have no rights as a shareholder with
respect to any Share covered by his/her Option until he/she shall have become the holder of record
of such Share, and he/she shall not be entitled to any dividends or distributions or other rights
in respect of such Share for which the record date is prior to the date on which he/she shall have
become the holder of record thereof.

     (viii) Except in connection with a transaction described in Section 7(A) or in
connection with the grant of Substitute Awards, the Committee shall not, without first
having obtained the approval of the shareholders of the Company, effect the cancellation of
any or all outstanding Options under the Plan and the substitution therefore of new Options
covering the same or different number of Shares but with an exercise price per share based
on the Fair Market Value per Share on the new option grant date.

     (ix) The following additional provisions shall be applicable to Incentive
Options, but only if, and to the extent, required by section 422 of the Code:

          (a) Incentive Options shall be specifically designated as such in the applicable
Agreement, and may be granted only to those Eligible Individuals who are both (i) Employees
of the Company and/or a Subsidiary, and (ii) citizens or resident aliens of the United
States.

          (b) To the extent the aggregate Fair Market Value (determined as of the time the
Option is granted) of the Stock with respect to which any Incentive Options granted
hereunder may be exercisable for the first time by the Optionee in any calendar year (under
this Plan or any other compensation plan of the Company or any Subsidiary thereof) exceeds
$100,000, such Options shall not be considered Incentive Options.

          (c) No Incentive Option may be granted to an individual who, at the time the Option is
granted, owns directly, or indirectly within the meaning of Section 424(d) of the Code,
stock possessing more than 10% of the total combined voting power of all classes of stock
of the Company or of any Subsidiary thereof, unless such Option (i) has an exercise price
of at least 110% of
the Fair Market Value of the Stock on the Date of Grant of such option; and (ii) cannot be
exercised more than five years after the Date of Grant.

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          (d) The Exercise Price for Incentive Options shall not be less than the Fair Market
Value of the Stock on the Date of Grant.

     (x) Each of the above provisions with respect to the granting, vesting,
transferability and exercise of Options, except to the extent they are applicable solely to
(i) the actual purchase of stock and payment of consideration or (ii) Incentive Options,
shall also apply to the grant of Stock Appreciation Rights by the Committee under the Plan.

     (D) Provisions Applicable to Restricted Stock and Restricted Stock Units.

     (i) Awards of Restricted Stock and Restricted Stock Units shall be subject to the
right of the Company to require forfeiture of such Shares or rights by the Participant in
the event that conditions specified by the Committee in the applicable Agreement are not
satisfied prior to the end of the applicable vesting period established by the Committee
for such Awards. Conditions for repurchase (or forfeiture) may be based on continuing
employment or service or achievement of pre-established performance or other goals and
objectives. Subject to the terms of the Plan and the applicable Agreement, Restricted
Stock or Restricted Stock Units shall be subject to vesting during a period of at least
three years following the date of grant, provided that vesting during a period of at least
one year following the date of grant is permissible if vesting is conditioned upon the
achievement of Performance Goals imposed on the Award pursuant to paragraph (F)(ii) below,
and provided, further, that Restricted Stock or Restricted Stock Units may vest in part on
a pro-rata basis prior to the expiration of any vesting period, and provided, further, that
up to five percent of Shares available for grant under this Plan may be granted without
regard to the requirements of this sentence.

     (ii) A Restricted Stock Unit may provide the Participant with the right to receive
dividend equivalent payments with respect to Stock subject to the Award (both before and
after the Stock subject to the Award is earned, vested, or acquired) (“Dividend
Equivalents”), which payments may be either made currently or credited to an account for
the Participant, and may be settled in cash or Stock, as determined by the Committee. Any
such settlements, and any such crediting of dividends or dividend equivalents or
reinvestment in shares of Stock, may be subject to such conditions, restrictions and
contingencies as the Committee shall establish, including the reinvestment of such credited
amounts in Stock equivalents. A Participant may not accrue Dividend Equivalents during any
calendar year in excess of $500,000.

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     (iii) Shares represented by Restricted Stock Awards may not be sold, assigned,
transferred, pledged or otherwise encumbered, except as permitted by the Committee, during
the applicable vesting period. Such Shares shall be evidenced in such manner as the
Committee may determine. Any certificates
issued in respect of such Shares shall be registered in the name of the Participant
and, unless otherwise determined by the Committee, deposited by the Participant, together
with a stock power endorsed in blank, with the Company (or its designee). To the extent
Shares of a Restricted Stock Award become nonforfeitable, the Company (or such designee)
shall deliver such certificates to the Participant or, if the Participant has died, to the
Participant’s Beneficiary. Each certificate evidencing stock subject to Restricted Stock
Awards shall bear an appropriate legend referring to the terms, conditions and restrictions
applicable to such Award. Any attempt to dispose of stock in contravention of such terms,
conditions and restrictions shall be ineffective. During the restriction period, the
Participant shall have all the rights of a shareholder for all such Shares, including the
right to vote and the right to receive dividends thereon as paid.

     (E) Provisions Applicable to Restricted Stock Units and Performance Shares. The
Committee may provide in the terms of a Restricted Stock Unit or Performance Share Award for the
elective deferral by the Participant of the receipt of the actual payment of cash or Stock
otherwise due and payable to the Participant pursuant to such Award. In providing for such
deferral, the Committee shall limit eligibility, and shall specify such rules regarding the timing
and other features of the deferral, so as to comply with all applicable sections of ERISA, section
409A of the Code, and the constructive receipt and similar doctrines of the internal revenue laws.

     (F) Provisions Applicable to Qualified Performance-Based Compensation. 

     (i) Designation as Qualified Performance-Based Compensation. The Committee may
structure the terms and provisions of Stock Awards, Restricted Stock Units, Dividend
Equivalents or Performance Shares granted to an Employee so that such Awards may constitute
“qualified performance-based compensation” under section 162(m) of the Code, in which case
the provisions of this paragraph (F) shall apply. The Committee may also grant Options or
SARs under which the exercisability of the Options or SARs is subject to the achievement of
performance goals as described in this paragraph (F) or otherwise.

     (ii) Performance Goals. When Awards are made under this paragraph (F), the Committee
shall establish in writing (a) the objective performance goals that must be met, (b) the
period during which performance will be measured, (c) the maximum amounts that may be paid
if the performance goals are met, and (d) any other conditions that the Committee deems
appropriate and consistent with the requirements of section 162(m) of the Code for the
Awards to qualify as “qualified performance-based compensation.” Under 162(m) of the Code
the performance goals shall satisfy the requirements for “qualified performance-based
compensation,” including the requirement that the achievement of the goals be substantially
uncertain at the time they are established and that the performance goals be established in
such a way that a third party with knowledge of the relevant facts could determine whether
and to what extent the performance goals have been met. The Committee shall not have
discretion to
increase the amount of compensation that is payable, but may reduce the amount of
compensation that is payable, pursuant to Awards identified by the Committee as “qualified
performance-based compensation.”

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     (iii) Criteria Used for Objective Performance Goals. The Committee shall use
objectively determinable performance goals based on one or more of the following criteria:
stock price, earnings per share, price-earnings multiples, net earnings, operating
earnings, revenue, number of days sales outstanding in accounts receivable, productivity,
margin, cost management, EBITDA (earnings before interest, taxes, depreciation and
amortization), net capital employed, return on assets, shareholder return, return on
equity, return on invested capital, growth in assets, unit volume, occupancy rates, sales,
cash flow, market share, performance relative to a comparison group designated by the
Committee, or strategic business criteria consisting of one or more objectives based on
meeting specified revenue goals, market penetration goals, customer growth, customer
satisfaction, geographic business expansion, acquisition or investment goals, cost targets
or goals relating to investments, acquisitions or divestitures. The performance goals may
relate to one or more business units or the performance of the Company as a whole, or any
combination of the foregoing. Performance goals need not be uniform as among Participants.
Such goals may be determined on an absolute or relative basis or as compared to specific
competitor(s), peers or indices. The Committee may exclude the impact of any event or
occurrence which the Committee determines should appropriately be excluded, including
without limitations (a) restructurings, discontinued operations, extraordinary items and
other unusual or non-recurring changes (b) an event either not directly related to the
operations of the Company or not within the reasonable control of the Company’s management
or (c) a change in applicable accounting standards.

     (iv) Timing of Establishment of Goals. The Committee shall establish the performance
goals in writing either before the beginning of the performance period or during a period
ending no later than the earlier of (i) 90 days after the beginning of the performance
period or (ii) the date on which 25% of the performance period has been completed, or such
other date as may be required or permitted under applicable regulations under section
162(m) of the Code.

     (v) Certification of Results. Prior to any payment of an Award intended to qualify
as performance-based compensation, the Committee shall certify the performance results for
the performance period specified in the Award after the performance period ends. The
Committee shall determine the amount, if any, to be paid pursuant to each Award based on
the achievement of the performance goals and the satisfaction of all other terms of the
Award.

     (vi) Maximum Awards Payable. Notwithstanding any provision contained in this Plan to
the contrary, the maximum amount of “qualified performance-based compensation” payable to
any one Participant under the Plan for a given performance period is 500,000 shares, or in
the event such
performance-based compensation is paid in cash, the equivalent cash value thereof on
the last day of the performance period to which such Award relates.

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Section 6. Exercises of Stock Options

     (A) An Option may be exercised in whole or in part at any time during the term of such Option
as provided in the Agreement; provided, however, that (i) unless otherwise provided by Section 7,
an Option may be exercised only while the Optionee is an Employee or Director, and (ii) each
partial exercise shall be for whole Shares only. Unless otherwise provided by Section 7 or in the
Agreement, that portion of an Option that has not become Vested as of the date the Optionee ceases
to be an Employee or Director shall lapse and be null and void.

     (B) Each Option, or any exercisable portion thereof, may only be exercised by delivery to the
Secretary or his/her office, in accordance with such procedures for the exercise of Options as the
Company may establish from time to time, of (i) notice in writing signed by the Optionee (or other
person then entitled to exercise such Option) that such Option, or a specified portion thereof, is
being exercised; (ii) payment in full for the purchased Shares or adequate provision therefor;
(iii) such representations and documents as are necessary or advisable to effect compliance with
all applicable provisions of Federal or state securities laws or regulations; (iv) in the event
that the Option or portion thereof shall be exercised by any individual other than the Optionee,
appropriate proof of the right of such individual to exercise the Option or portion thereof; and
(v) full payment to the Company of all amounts which, under federal, state or other law, it is
required to withhold upon exercise of the Option or adequate provision therefor.

     (C) Except as noted in this paragraph, upon receiving notice of exercise and payment, the
Company will cause to be delivered to the Optionee, as soon as practicable, a certificate in the
Optionee’s name for the Shares purchased, and shall evidence such transfer on the books and records
of the Company. The Shares issuable and deliverable upon the exercise of an Option shall be fully
paid and nonassessable. Shares shall not be issued pursuant to the exercise of an Option unless
the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall
comply with all relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the
requirements of any stock exchange upon which the Shares may then be listed, and shall be further
subject to the approval of counsel for the Company with respect to such compliance.

     (D) The method or methods of payment of the purchase price for the Shares to be purchased upon
exercise of an Option and of any amounts required for tax withholding purposes shall be determined
by the Company and may consist of (i) cash, (ii) check, (iii) the tendering, by either actual
delivery or by attestation, of whole shares of Stock, valued at Fair Market Value as of the day of
exercise, (iv) through a special sale and remittance procedure pursuant to which the Optionee shall
concurrently provide irrevocable written instructions to (a) a brokerage firm acceptable to the
Company to effect the immediate sale of the purchased shares and remit to the Company, out of the

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sale proceeds available on the settlement date, sufficient funds to cover the aggregate
exercise price payable for the purchased shares plus all applicable Federal, state and other
employment taxes required to be withheld by the Company by reason of such exercise, and (b) the
Company to deliver the certificates for the purchased Shares directly to such brokerage firm in
order to complete the sale. The permitted method or methods of payment of the amounts payable upon
exercise of an Option may be transacted by the Optionee or by a broker designated by him/her (other
than a payment described in clause (iv) above), and, if other than in cash, shall be set forth in
the applicable agreement or (v) such other means as may be approved by the Committee from time to
time, including without limitation, by the withholding from the number of Shares otherwise issuable
upon exercise of the Option that number of shares having an aggregate Fair Market Value on the date
of exercise equal to the Exercise Price.

     (E) Each Agreement shall require that an Optionee pay to the Company, at the time of exercise
of a Nonqualified Option, such amount as the Company deems necessary to satisfy the Company’s
obligation to withhold federal or state income or other applicable taxes incurred by reason of the
exercise or the transfer of Shares thereupon. To the extent permitted by the Agreement, an
Optionee may satisfy such withholding requirements by having the Company withhold from the number
of Shares otherwise issuable upon exercise of the Option that number of shares having an aggregate
Fair Market Value on the date of exercise equal to the amount required by law to be withheld.

Section 7. Events Affecting Plan Reserve or Plan Awards

     (A) If the Company subdivides its outstanding shares of Stock into a greater number of shares
of Stock (including, without limitation, by stock dividend or stock split) or combines its
outstanding shares of Stock into a smaller number of shares (by reverse stock split,
reclassification or otherwise), or any stock dividend, extraordinary cash dividend,
reclassification, recapitalization, reorganization, split-up, spin-off, combination, exchange of
shares, warrants or rights offering to purchase Stock, or other similar corporate event (including
mergers or consolidations) affects the Stock such that an adjustment is required in order to
preserve the benefits or potential benefits intended to be made available under this Plan, then the
Committee shall, in such manner as it may deem equitable and appropriate, make such adjustments to
any or all of (i) the number of shares of Stock reserved for the Plan, (ii) the number of shares
subject to outstanding Options and other Awards, (iii) the Exercise Price with respect to
outstanding Options, and any other adjustment that the Committee determines to be equitable;
provided, however, that the number of shares subject to any Option shall always be a whole number.
The Committee may provide for a cash payment to any Participant of an Award in connection with any
adjustment made pursuant to this Section 7.

     (B) Any such adjustment to an Option shall comply with Section 409(A) and any other applicable
provisions of the Code and shall be made without a change to the total Exercise Price applicable to
the unexercised portion of the Option (except for any change in the aggregate price resulting from
rounding-off of share quantities or prices),
and shall be final and binding upon all Participants, the Company, their representatives, and
all other interested persons.

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     (C) In the event of a transaction involving (i) a merger or consolidation in which the Company
is not the surviving company or (ii) the sale or disposition of all or substantially all of the
Company’s assets, provision shall be made in connection with such transaction for the assumption of
Awards theretofore granted under the Plan, or the substitution for such Awards of new options of
the successor corporation, with appropriate adjustment as to the number and kind of Shares and the
purchase price for Shares thereunder. Alternatively, in the discretion of the Committee, the Plan
and the Awards issued hereunder shall terminate on the effective date of such transaction if
appropriate provision is made for payment to the Participant of an amount in cash equal to the
value of the number of Shares subject to the Awards (to the extent such Awards have not been
exercised) taking into account the transaction less the aggregate exercise price for such Awards
(to the extent such Awards have not been exercised) taking into account the transaction. Further,
any obligations under the Plan to deliver Shares of Stock in the future shall be similarly
adjusted.

     (D) If a Participant has a Termination of Service by reason of his/her death or Disability,
then notwithstanding any contrary waiting period, installment period or vesting schedule in any
Agreement or in the Plan, unless the applicable Agreement provides otherwise, each outstanding
Award granted to such Participant shall immediately become Vested and, if an Option, exercisable
in full in respect of the aggregate number of shares covered thereby and, if a Restricted Stock
Unit, Stock Appreciation Right or Performance Share Award, promptly settled.

     (E) If an Optionee has a Termination of Service for any reason other than his/her death or
Disability prior to the expiration date of his/her Option, and all or some portion of such Option
is Vested and exercisable pursuant to the terms of this Plan and of the Option Agreement, such
Vested portion of the Option may be exercised by the Optionee at any time prior to the earlier of
(i) twelve months following the date of the Optionee’s Termination, or (ii) the expiration date of
such Option.

     (F) The Company may determine whether any given leave of absence constitutes a Termination of
Service and, if it does not, whether the time spent on the leave will or will not be counted as
vesting credit; provided, however, that for purposes of the Plan (i) a leave of absence, duly
authorized in writing by the Company, if the period of such leave does not exceed 90 days, and (ii)
a leave of absence in excess of 90 days, duly authorized in writing by the Company, provided (a)
the Employee’s right to reemployment is guaranteed either by statute or contract, or (b) for the
purpose of military service, shall not be deemed a Termination of Service.

     (G) Following a Change of Control, if a Participant has a Termination of Service within
eighteen (18) months of such Change of Control, other than by reason of (i) death, (ii) Disability,
(iii) termination for Cause, or (iv) termination by the Participant for other than Good Reason,
then notwithstanding any contrary waiting period, installment period or vesting schedule in any
Agreement or in the Plan, each outstanding Award granted to such Participant shall immediately
become Vested, and,
if an Option, exercisable in full in respect of the aggregate number of shares covered
thereby.

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     (H) “Change of Control” shall mean (i) the acquisition by any individual, entity or group
(other than the Company, Cruise Associates and/or A. Wilhelmsen AS or an affiliate of any of them)
of beneficial ownership (as such term is defined in Rule 13d-3 promulgated under the Exchange Act)
of more than 50% of the then outstanding voting securities of the Company entitled to vote
generally in the election of Directors (the ”Voting Securities”); (ii) during any period of 24
consecutive months, a majority of the Board shall no longer be composed of individuals (a) who were
members of the Board on the first day of such period, or (b) whose election or nomination to the
Board were approved by a vote of at least two-thirds of the members of the Board who were members
of the Board on the first day of such period, or (c) whose election or nomination to the Board was
approved by a vote of at least two-thirds of the members of the Board referred to in the foregoing
subclauses (a) and (b); (iii) consummation of a reorganization, merger or consolidation or sale or
other disposition of all or substantially all of the assets of the Company (a “Business
Combination”) unless, following such Business Combination (a) the beneficial owners of the Voting
Securities of the Company immediately prior to the Business Combination beneficially own more than
50% of the combined voting power of the voting securities entitled to vote generally in the
election of directors of the corporation resulting from such Business Combination, and (b) at least
a majority of the board of directors of the corporation resulting from such Business Combination
were members of the Company’s Board at the time of the action of the Company’s Board providing for
such Business Combination; (iv) consummation of a reorganization, merger or consolidation with
another corporation or business entity not already under common control with the Company, or the
acquisition of stock or assets of such other corporation or business entity, if the market
capitalization of the other corporation or entity, or the stock or assets acquired, is equal to or
greater than the Company’s market capitalization immediately prior to the closing of such
transaction; or (v) approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company.

     (I) “Cause” shall mean (i) if such term is defined in an employment agreement between the
Participant and the Company or Affiliate, as such term is defined therein or (ii) (a) an act of
material dishonesty, including, without limitation, fraud, misappropriation, embezzlement,
financial misrepresentation or other similar behavior, (b) conviction of, or the entry of a plea of
guilty or nolo contendere to, the commission of a felony; (c) an action or failure to act that
demonstrates a conflict of interest in which the person acts for his or her own benefit to the
detriment of the Company; (d) an action or failure to act that constitutes a material breach of the
person’s duties to the Company; or (e) the failure to follow the lawful directives of the Company
provided that those directives are consistent with the person’s duties to the Company.

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     (J) “Good Reason” shall mean (i) if such term is defined in an employment agreement between
the Participant and the Company or Affiliate, as such term is defined therein or (ii) (a) the
assignment to the person without the person’s consent of any duties materially inconsistent with
the person’s position (including status, offices
and titles), authority, duties or responsibilities as they existed prior to the Change of
Control; (b) any action by the Company which results in a material diminution in the person’s
position, authority, duties, responsibilities, compensation or benefits as they existed prior to
the Change of Control without the person’s consent; or (c) the Company requiring that the person
relocate his or her principal business office more than 100 miles from the location existing prior
to the Change of Control without the person’s consent.

     (K) In addition to any action required or authorized by the terms of an Award, the Committee
may take any other action it deems appropriate to ensure the equitable treatment of Participants in
the event of or anticipation of a Change of Control, including but not limited to any one or more
of the following with respect to any or all Awards: (i) the acceleration or extension of time
periods for purposes of exercising, vesting in, or realizing gains from, the Awards, (ii) the
waiver of conditions on the Awards that were imposed for the benefit of the Company, (iii)
provision for the cash settlement of the Awards for their equivalent cash value, as determined by
the Committee, as of the date of the Change of Control; or (iv) such other modifications or
adjustments to the Awards as the Committee deems appropriate to maintain and protect the rights and
interests of Participants upon or following the Change of Control.

Section 8. Administration

     (A) The Plan shall be administered by the Compensation Committee of the Board unless a
different committee is appointed by the Board.

     (B) The Committee’s administration of the Plan shall be subject to the following:

     (i) Subject to the provisions of the Plan, the Committee will have the authority and
discretion to select from among the Eligible Individuals those persons who shall receive
Awards, to determine the time or times of receipt, to determine the types of Awards and the
number of shares covered by the Awards, to establish the terms, conditions, performance
criteria, restrictions, and other provisions of such Awards, and, subject to the
restrictions of Section 11, to cancel or suspend Awards.

     (ii) To the extent that the Committee determines that the restrictions imposed by the
Plan preclude the achievement of the material purposes of the Awards in jurisdictions
outside the United States, the Committee will have the authority and discretion to modify
those restrictions as the Committee determines to be necessary or appropriate to conform to
applicable requirements or practices of those jurisdictions.

     (C) The Committee may delegate to one or more Directors or officers of the Company, or a
committee of such Directors or officers, the authority, subject to such terms and limitations as
the Committee shall determine, to grant Awards to, or to cancel, modify, waive rights with respect
to, alter, discontinue, suspend or terminate Awards held by, Employees who are not officers or
Directors of the Company for purposes of
Section 16 of the Exchange Act provided, however, that any such delegation shall conform with
applicable law and the requirements of any exchange on which the Company’s securities are listed.

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     (D) The Company and its Affiliates shall furnish the Committee with such data and information
as it determines may be required for it to discharge its duties. The records of the Company and
its Affiliates as to an Employee’s or Participant’s employment (or other provision of services),
Termination of Service, leave of absence, reemployment and compensation shall be conclusive on all
persons unless determined to be incorrect. Participants and other persons entitled to benefits
under the Plan must furnish to the Company such evidence, data, or information, as the Committee or
the Company considers desirable to carry out the terms of the Plan.

     (E) The Committee is authorized, subject to the provisions of the Plan, to establish, amend
and rescind such rules and regulations, as it deems necessary or advisable for the proper
administration of the Plan and to take such other action in connection with or in relation to the
Plan, as it deems necessary or advisable. Each action and determination made or taken pursuant to
the Plan by the Committee, including any interpretation or construction of the Plan, shall be final
and conclusive for all purposes and upon all persons.

     (F) No member of the Committee or the Board shall be personally liable for any action,
determination or interpretation made by him/her or the Committee or the Board in good faith with
respect to the Plan or any Award granted pursuant thereto.

     (G) The Committee, the Company, and its officers and Directors, shall be entitled to rely upon
the advice, opinions or valuations of any attorneys, consultants, accountants or other persons
employed to assist them in connection with the administration of the Plan.

Section 9. Government Regulations and Registration of Shares

     (A) The Plan, and the grant and exercise of Awards hereunder, and the Company’s obligation to
sell and deliver stock under Options, shall be subject to all applicable federal and state laws,
rules and regulations and to such approvals by any regulatory or governmental agency as may be
required.

     (B) The obligation of the Company with respect to Awards shall be subject to all applicable
laws, rules and regulations and such approvals by any governmental agencies as may be required,
including, without limitation, the effectiveness of any registration statement required under the
Securities Act of 1933, and the rules and regulations of any securities exchange or association on
which the Stock may be listed or quoted.

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     (C) With respect to persons subject to Section 16 of the Exchange Act, it is the intent of the
Company that the Plan and all transactions under the Plan comply with all applicable provisions of
Rule 16b-3 or its successors under the Exchange Act. In addition, it is the intent of the Company
that Incentive comply with the applicable
provisions of Section 422 of the Code, that grants of “qualified performance-based
compensation” comply with the applicable provisions of Section 162(m) of the Code and that, to the
extent applicable, all Awards comply with the requirements of Section 409A of the Code. To the
extent that any legal requirement of Section 16 of the Exchange Act or Section 422, 
162(m) or 409A
of the Code as set forth in the Plan ceases to be required under such section, the Committee, in
its sole discretion, may decide that the applicable Plan provision shall cease to apply. The
Committee may revoke any Award if it is contrary to law, or may modify an Award to bring it into
compliance with any valid and mandatory government regulation.

Section 10. Miscellaneous Provisions

     (A) Rights of Company. Nothing contained in the Plan or in any Agreement, and no
action of the Company or the Committee with respect thereto, shall interfere in any way with the
right of the Company or an Affiliate to terminate the employment of the Participant at any time,
with or without cause. The grant of Awards pursuant to the Plan shall not affect in any way the
right or power of the Company to make reclassifications, reorganizations or other changes of or to
its capital or business structure or to merge, consolidate, liquidate, sell or otherwise dispose of
all or any part of its business or assets.

     (B) Designation of Beneficiaries. Each Participant who shall be granted a Plan Award
may designate a beneficiary or beneficiaries and may change such designation from time to time by
filing a written designation of beneficiary or beneficiaries with the Company on a form to be
prescribed by it, provided that no such designation shall be effective unless so filed prior to the
death of such person.

     (C) Payroll Tax Withholding. The Company’s obligation to deliver shares of Stock or
make payments under the Plan shall be subject to applicable federal, state and other tax
withholding requirements. Federal, state, and other tax due upon the exercise of any Award may, in
the discretion of the Company, be paid in shares of Stock already owned by the Optionee or through
the withholding of shares otherwise issuable to such Optionee, upon such terms and conditions
(including, without limitation, the conditions referenced in Section 6) as the Company shall
determine which shares shall have an aggregate Fair Market Value equal to the required minimum
withholding payment. If the Optionee shall fail to pay, or make arrangements satisfactory to the
Committee for the payment to the Company of all such federal, state and other taxes required to be
withheld by the Company, then the Company shall, to the extent permitted by law, have the right to
deduct from any payment of any kind otherwise due to such Optionee an amount equal to federal,
state or other taxes of any kind required to be withheld by the Company.

     (D) Employees Subject to Taxation Outside the United States. With respect to
Participants who are subject to taxation in countries other than the United States, the Committee
may grant Awards on such terms and conditions as the Committee deems appropriate to comply with the
laws of the applicable countries, and the Committee may create such procedures, addenda and
sub-plans and make such modifications as may be necessary or advisable to comply with such laws.

-19-

 

     (E) Exclusion from Benefit Computation. By accepting an Award, unless otherwise
provided in the applicable Agreement, each Participant shall be deemed to have agreed that such
Award is special incentive compensation that will not be taken into account, in any manner, as
salary, compensation or bonus in determining the amount of any payment under any health and
welfare, pension, retirement or other employee benefit plan, program or policy of the Company or
any Subsidiary. In addition, each Beneficiary of a deceased Participant shall be deemed to have
agreed that such Award will not affect the amount of any life insurance coverage, if any, provided
by the Company on the life of the Participant which is payable to such Beneficiary under any life
insurance plan covering employees of the Company or any Subsidiary.

     (F) Use of Proceeds. Proceeds from the sale of Shares pursuant to Options granted
under this Plan shall constitute general funds of the Company.

     (G) Form and Time of Elections. Unless otherwise specified herein, each election
required or permitted to be made by any Participant or other person entitled to benefits under the
Plan, and any permitted modification, or revocation thereof, shall be in writing filed with the
Company at such times, in such form, and subject to such restrictions and limitations, not
inconsistent with the terms of the Plan, as the Company shall require.

     (H) Unfunded Status. Neither a Participant nor any other person shall, by reason or
participation in the Plan, acquire any right in or title to any assets, funds or property of the
Company or any Affiliate whatsoever, including, without limitation, any specific funds, assets, or
other property which the Company or any Affiliate, in its sole discretion may set aside in
anticipation of a liability under the Plan. A Participant shall have only a contractual right to
the Stock or amounts, if any, payable under the Plan, unsecured by any assets of the Company or any
Subsidiary, and nothing contained in the Plan shall constitute a guarantee that the assets of the
Company or any Affiliate shall be sufficient to pay any benefits to any person.

Section 11. Amendment and Termination of this Plan

     The Committee may at any time terminate, suspend or discontinue this Plan. The Committee may
amend this Plan at any time, provided that no such amendment shall be made without the approval of
the Company’s stockholders (a) to the extent that such approval is required by applicable law or by
the listing standards of any applicable exchange(s) on or after the adoption of this Plan, (b) to
the extent that such amendment would materially increase the number of securities which may be
issued under the Plan, (c) to the extent that such amendment would materially modify the
requirements for participation in the Plan, or (d) to the extent that such amendment would
accelerate the vesting of any Restricted Stock or Restricted Stock Units under the Plan except as
otherwise provided in the Plan.

     The Committee may at any time alter or amend any or all Award Agreements under this Plan to include
provisions, or to effect a result, that would be authorized for a new Award under this Plan, so
long as such an amendment would not require approval of the Company’s shareholders if such
amendment were made to the Plan.
Notwithstanding the foregoing, except as may be provided in Section 7(C), no such action by the
Board or the Committee shall, in any manner adverse to a Participant, affect any Award then
outstanding without the consent in writing of the affected Participant.

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