Document:

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                                                                    EXHIBIT 10.6

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement"), dated as of September 27,
2000, is entered into between Waste Corporation of America, Inc. (the "Company"
or the "Employer") and Tom J. Fatjo, III (the "Executive"), is subject to the
closing (the "Closing") of that certain Asset Sale Agreement dated April 14,
2000 among the Company, Waste Management, Inc. ("WMI") and certain selling
subsidiaries of WMI and shall be effective as of the date of the Closing (the
"Effective Date").

                                    RECITALS

         A. The Executive is currently employed as an officer of the Company.

         B. The stockholders of the Company have requested that the Board of
Directors provide incentives to the Executive to continue to work for a period
of at least five years toward (1) the substantial growth of the Company and (2)
the initial public offering or sale of the Company and, in connection with any
such sale of the Company, to seek the alternative which is in the best interest
of such stockholders.

         C. The Board of Directors recognizes that, in connection with any sale
of the Company, the best alternative for the stockholders may involve the
replacement of the officers of the Company, including the Executive.

         D. In order to induce the Executive to continue as an officer of the
Company for a period of at least five years despite the prospect of such a sale
of the Company, the Company and the Executive have agreed as set forth herein.

                                    AGREEMENT

         In consideration of the mutual terms, conditions, and covenants set
forth herein, the Company and Executive agree to the following:

         1. Term of Employment. The Company hereby agrees to employ the
Executive, and the Executive hereby agrees to remain in the employ of the
Company, for the period commencing on the Effective Date of this Agreement and
ending on the earlier of: (a) the fifth anniversary of the Effective Date or (b)
such earlier date as this Agreement is terminated pursuant to Section 2. The
period between the Effective Date of this Agreement and the fifth anniversary of
the Effective Date is referred to herein as the "Term."

         2. Termination of Employment. Executive's employment with the Company
shall terminate upon the earliest of

         (a) the death of the Executive;

         (b) at any time after Executive has been receiving full or partial
salary payments under Employer's disability plans for a period of 18 consecutive
months, either Employer or Executive sending the other party written notice that
Executive is "permanently disabled" as
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such term is defined in the Company's long term disability plan as in effect
from time to time; provided, however, that during any period prior to such
termination of this Agreement in which Executive is receiving full or partial
salary payments under the Company's disability insurance policies, the
obligation of the Company to pay Executive salary pursuant to Section 4 shall
cease;

         (c) the Company's sending Executive written notice that Executive's
employment is terminated for "cause" which term shall mean the willful material
breach by Executive of this Agreement, (other than any breach resulting from
Executive's incapacity due to physical or mental illness), which breach
continues for thirty (30) days after actual receipt of written notice from the
Company and which results in, or is reasonably likely to result in, demonstrable
material damage to the Company, Executive's conviction of or plea of guilty to a
felony or Executive's conviction of a crime involving moral turpitude,
Executive's engagement in the fraud of or the misappropriation or embezzlement
of funds from Employer, or Executive's reckless disregard or willful misconduct
which misconduct, if ongoing, (as distinguished from an isolated incident),
continues for thirty (30) days after actual receipt of written notice from the
Company and which results in, or is reasonably likely to result in, demonstrable
and material damage to the Company;

         (d) the Executive's sending the Company written notice that Executive's
employment is terminated for "Good Reason" which term shall mean the occurrence
(without the Executive's express written consent) of any one of the following
acts by the Company, or failures by the Company to act, unless, in the case of
any act or failure to act described below, such act or failure to act is
corrected within thirty (30) days after actual receipt of written notice from
Executive: (i) the Company's breach of a material term or condition of the
Agreement; (ii) except for any changes required by applicable law, the failure
by the Company to continue in effect any compensation plan in which the
Executive participates immediately prior to the date hereof which is material to
the Executive's total compensation, including but not limited to the Company's
annual incentive plan, long term incentive plan, supplemental executive
retirement plan and stock option plan, as applicable, unless an equitable
arrangement (embodied in an ongoing substitute or alternative plan) has been
made with respect to such plan, or the failure by the Company to continue the
Executive's participation therein (or in such substitute or alternative plan) on
a basis not materially less favorable (as determined by the Executive in good
faith), both in terms of the amount or timing of payment of benefits provided
and the level of the Executive's participation relative to other participants,
as existed immediately prior to the Effective Date hereof; or (iii) the
Company's asking or requiring the Executive to take (or not to take) any action
which the Executive in good faith reasonably believes could be materially
misleading to the Company's employees, investors, accountants or attorneys
and/or any regulatory authority; provided, however, that the Executive's right
to terminate the Executive's employment for Good Reason shall not be affected by
the Executive's incapacity due to physical or mental illness, and that the
Executive's continued employment shall not constitute consent to, or a waiver of
rights with respect to, any act or failure to act constituting Good Reason
hereunder;

         (e) the expiration of the Term on the fifth Anniversary of the
Effective Date; provided, however, that the Company and the Executive may
mutually agree to continue Executive's employment on an "at-will" basis.

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         3. Position and Duties.

         (a) The Executive's positions shall be those of Vice President,
Treasurer and Secretary, and in such capacity Executive shall perform the
customary duties and responsibilities of the positions and such other services
and duties as shall be assigned to him by the executive management of the
Company in accordance with Company policy. Subject to the Company's actual
receipt of prior written consent of Executive, these positions, duties, and
responsibilities can be modified as required to suit the specific requirements
and needs of Employer, provided that any such modification shall result in
substantially similar, comparable or higher positions, duties and
responsibilities. Similarly, subject to the Company's actual receipt of prior
written consent of Executive, the Company may assign Executive part time or full
time to a Subsidiary (as defined in Section 10(c) of this Agreement) in which
case the Subsidiary shall be jointly and severally responsible as, and shall be
treated as, the Company or the Employer under this Agreement for the period of
time the Executive performs services for the Subsidiary. Executive's place of
employment will be located within the greater Houston, Texas metropolitan area,
but Executive will undertake appropriate business travel as required by
Employer.

         (b) Executive agrees to conduct all business in accordance with the
Company's general policies/directives as they may exist at any given time.
Executive shall comply materially with all applicable laws and regulations of
the countries in which Employer and its affiliates operate.

         (c) Executive agrees to devote his full time, attention, and efforts
during regular business hours, and at all such other times as may be requested
by the Company, consistent with industry practices, to the business affairs of
the Company during the Term of this Agreement and to perform his duties
faithfully and diligently to discharge the responsibilities assigned to the
Executive hereunder. The foregoing notwithstanding, the parties recognize and
agree that Executive may engage in passive personal investments and other
business, civic or charitable activities that do not conflict with the business
and affairs of the Company or interfere with Executive's performance of his
duties hereunder.

         4. Salary. Except if Executive's employment is terminated pursuant to
Section 2(a), (b), (c) or (d) (in which case Section 7(a) applies) and except as
otherwise provided in Section 2(b), during the Term, Employer shall pay
Executive a base salary of $165,000 per year, payable bi-monthly ("Base
Salary"). At least annually, Employer shall review Executive's Base Salary which
may be increased (but not decreased) in Employer's sole discretion.

         5. Stock Options. Not later than the Effective Date of this Agreement,
the Board shall take appropriate action to ensure that Executive shall be
granted a stock option in the form of the nonstatutory stock option grant
agreement attached hereto as Appendix A.

         6. Benefits. Except if Executive's employment is terminated pursuant to
Section 2(a), (b), (c) or (d) (in which case Section 7(a) applies), during the
Term, Executive and, to the extent applicable, Executive's family, dependents
and beneficiaries, may participate in the benefit or similar plans, policies or
programs (including, without limitation, the Company's Management Incentive
Plan, business and entertainment expense reimbursement policies, car allowance
policies, 401(k) plans, disability plans, pension plans, health insurance plans
and

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director and officer liability insurance policies) provided to similarly
situated Executives under Employer's standard employment practices as in effect
from time to time. Nothing herein shall be construed to require the Company to
continue or put into effect any plan, practice, policy, or program or any
element thereof. In addition, during the Term, Executive shall be entitled to
three (3) weeks of paid vacation days annually pursuant to applicable policies
and procedures of the Company as in effect from time to time.

         7. Effects of Termination of Employment.

         (a) Upon termination of Executive's employment with the Company for any
reason whatsoever, Employer shall pay to Executive (or in case of Executive's
death, to his estate), within thirty (30) days of the effective date of such
termination, all salary and expense reimbursements due to Executive through the
date of such termination, and Executive shall be entitled to such benefits as
are available pursuant to the terms of any benefit or similar plans, policies or
programs in which Executive was participating at the time of such termination
pursuant to Section 6 of this Agreement. In addition, upon termination of
Executive's employment with the Company for death or permanent disability, in
lieu of any further salary or bonus payments as severance to Executive for
periods subsequent to such termination and in lieu of any other severance
otherwise payable to Executive, the Company will pay to Executive (or to his
estate, as applicable), within thirty (30) days of such termination, a lump sum
severance payment, in cash equal to one (1) year of Executive's Base Salary as
in effect immediately prior to such termination of Executive's employment. Also,
if the Company terminates the Executive's employment for any reason other than
those set forth in Sections 2(a), (b) or (c), or if Executive terminates
Executive's Employment under Section 2(d), the Company shall continue throughout
the full Term of this Agreement to pay Executive's salary pursuant to Section 4
and to provide Executive's benefits pursuant to Section 6 (and, if the Company
pays Executive's salary and provides Executive's benefits for the full Term of
this Agreement, Executive shall be subject to the covenants contained in Section
9 through the full term of this Agreement).

         (b) Notwithstanding any termination of this Agreement or Executive's
employment hereunder, this Section 7 and Sections 10 and 11 of this Agreement,
and the rights and obligations created therein, shall survive without
limitation.

         8. Tax Withholding. All payments to Executive under this Agreement
shall be subject to withholding or deduction of such amounts as may be required
by law.

         9. Noncompetition and Confidentiality.

         (a) The parties recognize that the employment of Executive with the
Company has been and will continue to be special, unique and of an extraordinary
character, and in connection with such employment Executive has and will
continue to acquire special skill and training. The parties also recognize that
the covenants of Executive contained in this Section 9 are an essential part of
Executive's engagement by the Company and that, but for the agreement of the
Executive to comply with such covenants, the Company would not have entered into
this Agreement. Executive accordingly agrees that, during the Term, (i)
Executive shall not act or serve, directly or indirectly, as a principal, agent,
independent contractor, consultant, director, officer, executive, employee or
advisor or in any other position or capacity with or for, or acquire a

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direct or indirect ownership interest in or otherwise conduct (whether as
stockholder, partner, investor, joint venturer, or as owner of any other type of
interest), any Competing Business (defined below); provided, however, that this
clause shall not prohibit the Executive from being the owner of (A) up to 5% of
any class of outstanding securities of any entity if such class of securities is
publicly traded or (B) any other securities owned by Executive on the date of
this Agreement, and (ii) Executive shall not, in connection with or for the
benefit of any person or entity engaged in the non hazardous solid waste
business, solicit, induce, divert or take away, any officer, employee or
consultant of the Company.

         (b) From the date hereof, Executive shall hold in secrecy for the
Company all trade secrets and other confidential information relating to the
business and affairs of the Company that have come or may have come to his
attention during his employment with the Company, including information
concerning costs, profits, markets, sales, business development plans, fists of
clients or customers, lists of acquisition targets and other information about
such acquisition targets and other information of a similar nature (such
categories of information being referred to herein as "Confidential
Information"). Executive shall not use for his own benefit or disclose to any
person any Confidential Information other than in the ordinary course of the
Company's business or in response to a court order, unless such use or
disclosure has the prior written authorization of the Company. Executive shall
deliver to the Company, upon request, all correspondence, memoranda, notes,
records, plans, customer lists, product compositions and other documents and all
copies thereof, whether in hard copy form or electronically or magnetically
stored, made, composed, or received by the Executive, solely or jointly with
others, that are in the Executive's possession, custody or control and that are
related in any manner to the past, present or anticipated business of the
Company.

         (c) For the purposes of this Section 9, "Competing Business" shall mean
an individual, business, corporation, association, firm, undertaking,
partnership, joint venture, organization or other entity that operates
non-hazardous solid waste landfills, non-hazardous solid waste collection
businesses or similar facilities or businesses within a 50-mile radius of any of
the Company's landfills or similar facilities.

         (d) Should any portion of this Section 9 be deemed unenforceable
because of the scope, duration or territory encompassed by the undertakings of
the Executive hereunder, and only in such event, then the Executive and the
Employer consent and agree to such limitation on scope, duration or territory as
may be finally adjudicated as enforceable by a court of competent jurisdiction
after the exhaustion of all appeals.

         (e) The covenants in this Section 9 shall be construed as an agreement
ancillary to the other provisions of this Agreement, and the existence of any
claim or cause of action of the Executive against the Employer, whether
predicated on this Agreement or otherwise, other than a claim or cause of action
based on the Company's failure to pay Executive amounts payable to Executive
hereunder, shall not constitute a defense to the enforcement by the Employer of
this covenant.

         (f) It is expressly recognized and agreed that the covenants set forth
in this Section 9 are for the purpose of restricting the activities of the
Executive only to the extent necessary for the protection of the legitimate
business interests of the Company, and the Company and the

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Executive agree that said covenants are reasonable for that purpose and that
such covenants do not and will not preclude Executive from engaging in
activities sufficient for the purpose of earning a living.

         10. Additional Consideration.

         (a) In consideration of Executive's entering into this Agreement, on
the Effective Date the company shall pay to Executive, a lump sum in cash in the
aggregate amount of $62,500 less required withholding.

         (b) During the Term, Executive shall participate, on comparable terms,
in the Company's annual incentive plan in which similarly situated executives of
the Company participate and can earn up to seventy-five percent (75%) of Base
Salary as more fully described in Appendix B which is attached hereto and
incorporated into this Agreement for all purposes.

         (c) In the event of the occurrence of a "Change in Control" (defined
below), the Company shall pay to Executive, within thirty (30) days after such
Change in Control, a lump sum payment, in cash, equal to three (3) times
Executive's annual Base Salary as in effect immediately prior to the Change in
Control. "Change in Control" shall mean the occurrence during the Term of this
Agreement, of an one of the following events:

                  (i) An acquisition of any common stock ("Common Stock"), par
         value $.01 per share, of the Company or the Subsidiary (as defined
         below) or other securities entitled to voter or convertible into or
         exercisable for securities entitled to vote, in the election of
         directors (such Common Stock and other securities hereinafter being
         referred to as the "Voting Securities") of the Company or the
         Subsidiary by any Person (as specified in Section 3(a)(9) of the
         Securities Exchange Act of 1934, as amended (the 'Exchange Act"), and
         used in Sections 13(d) and 14(d) thereof), including for purposes of
         this Section the Company or its Affiliates (including the Subsidiary),
         immediately after which such Person has Beneficial Ownership (as
         defined below) of fifty percent (50%) or more of the combined voting
         power of the Company's or the Subsidiary's then outstanding Voting
         Securities; provided, however, a Change in Control shall not be deemed
         to have occurred by reason of an acquisition of fifty percent (50%) or
         more of the Company's or the Subsidiary's Voting Securities by an
         employee benefit plan maintained by the Company or any of its
         Affiliates (including the Subsidiary) or by a Person in a Non-Control
         Transaction (as defined below); or

                  (ii) The individuals who, as of the date of this Agreement are
         members of the Board or the Board of Directors of the Subsidiary (the
         "Incumbent Board"), cease for any reason to constitute at least
         two/thirds (2/3) of the members of the Board or the Board of Directors
         of the Subsidiary; provided, however, that an individual will be
         treated as a member of the Incumbent Board if the members of the Board
         or the Board of Directors of the Subsidiary prior to such individual's
         nomination unanimously approve such individual's nomination and
         election to the Board or the Board of Directors of the Subsidiary and
         provided further that no individual shall be considered a member of the
         Incumbent Board if such individual initially assumed office as a result
         of either an actual or threatened proxy contest or other actual or
         threatened solicitation of proxies or

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         consents by or on behalf of a Person other than the Board or the Board
         of Directors of the Subsidiary (a "Proxy Contest"), including by reason
         of any agreement intended to avoid or settle any Proxy Contest; or

                  (iii) The consummation of

                  (A) A merger, consolidation or reorganization with or into the
         Company or the Subsidiary or in which securities of the Company or the
         Subsidiary are issued (a "Merger"), unless such Merger, consolidation
         or reorganization occurs in connection with a Non-Control Transaction;

                  (B) A complete liquidation or dissolution of the Company or
         the Subsidiary; or

                  (C) The sale or other disposition of all or substantially all
         of the assets of the Company or the Subsidiary to any Person (other
         than a transfer to an employee benefit plan or Affiliate of the Company
         or under conditions that would constitute a Non-Control Transaction
         with the disposition of assets being regarded as a Merger of this
         purpose).

         Notwithstanding any other provision hereof to the contrary, no
transaction involving a sale or exchange or other disposition of Voting
Securities that are issued and outstanding on the Effective Date for a price of
less than three dollars ($3.00) a share shall qualify as a Change in Control. As
used herein the following terms have the following meanings:

                  (i) "Affiliate" shall have the meaning set forth in Rule 12b-2
         promulgated under Section 12 of the Exchange Act.

                  (ii) "Beneficial Ownership," "Beneficially Owned" and the like
         means having, with respect to a security or group of securities, the
         power to control or direct the voting or disposition of Voting
         Securities, as determined by Rule 13d-3 under the Exchange Act.

                  (iii) "Non-Control Transaction" means a Merger whereby (A) the
         individuals who were the president, chief executive officer and the
         chief financial officer of the Company or the Subsidiary hold such
         respective positions with, and individuals who were members of the
         Incumbent Board immediately prior to the execution of the agreement
         providing for the Merger, constitute at least a majority of the members
         of the board of directors of, the surviving corporation and (B) either
         (1) fifty percent (50%) or more of the combined voting power of the
         then outstanding voting securities of the surviving corporation is
         Beneficially Owned directly by the Beneficial Owners of the Company's
         or the Subsidiary's Voting Securities prior to the Merger or (2) the
         president, chief executive officer and/or chief financial officer of
         the Company, as a result of such Merger, acquire (or their Affiliates
         acquire) fifty percent (50%) or more of the combined voting power of
         the then outstanding voting securities of the surviving corporation.

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                  (iv) "Subsidiary" means WCA Waste Systems, Inc., a Delaware
         Corporation, or any other entity in which the Company owns fifty
         percent (50%) or more of the outstanding equity securities entitled to
         vote in the election of directors or their equivalent and shall include
         any successor to the business and/or assets of such entity.

         11. No Mitigation; Limited Offset. The Company agrees that, if
Executive's employment with the Company terminates during the Term, Executive is
not required to seek other employment or to attempt in any way to reduce any
amounts payable to Executive by the Company pursuant to this Agreement. Further,
the amount of any payment or benefit provided for in this Agreement shall not be
reduced by any compensation earned by the Executive as the result of employment
by another employer, by retirement benefits, by offset against any amount
claimed to be owed by the Executive to the Company (unless such amount is
evidenced by a promissory note signed by the Executive), or otherwise.

         12. Remedies. With respect to each and every breach or violation or
threatened breach or violation by Employee of Section 9, the Company, in
addition to all other remedies available at law or in equity, including specific
performance of the provisions thereof, shall be entitled to enjoin the
commencement or continuance thereof and may, with notice to Employee, but
without the necessity of posting a bond or otherwise, apply to any court of
competent jurisdiction for entry of an immediate restraining order or
injunction. The Company may pursue any of the remedies described in this Section
12 concurrently or consecutively in any order as to any such breach or
violation, and the pursuit of one of such remedies at any time will not be
deemed an election of remedies or waiver of the right to pursue any of the other
of such remedies.

         13. Severability. The provisions of this Agreement are severable, and
any judicial determination that one or more of such provisions, or any portion
thereof, is invalid or unenforceable shall not affect the validity or
enforceability of any other provisions, or portion thereof, but rather shall
cause this Agreement to first be construed in all respects as if such invalid or
unenforceable provisions, or portions thereof, were modified to terms which are
valid and enforceable; provided, however, that if necessary to render this
Agreement enforceable, it shall be construed as if such invalid or unenforceable
provisions, or portions thereof, were omitted.

         14. Successors. This Agreement is personal to the Executive and shall
not be assignable by the Executive without the prior written consent of the
Company. This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns.

         15. Governing, Law. The validity, interpretation and performance of
this Agreement and all rights and obligations of the parties hereunder shall be
governed by and construed under the laws of the State of Texas.

         16. Notices. For the purpose of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed, if to
Executive, to the address inserted below the Executive's signature on the final
page hereof and, if to the Company, to the address set forth below, or to such
other

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address as either party may have furnished to the other in writing in accordance
herewith, except that notice of change of address shall be effective only upon
actual receipt:

                  To the Company:

                  Waste Corporation of America, Inc..
                  One Riverway, Suite 1400
                  Houston, Texas 77056
                  Attention:  Mr. Tom Fatjo, Jr.

         17. Amendment. This Agreement may not be amended or modified other than
by a written agreement executed by the parties hereto or their respective
successors, assigns or legal representatives.

         18. Miscellaneous. No waiver by either party hereto at any time of any
breach by the other party hereto of, or of any lack of compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. This Agreement supersedes any other
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof which have been made by either party,
including, without limitation, any employment memorandum, memorandum of
understanding, or severance arrangements. Captions and Section headings in this
Agreement are provided merely for convenience and shall not affect the
interpretation of any of the provisions herein.

                [This space intentionally has been left blank.]

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         The parties have executed this Employment Agreement as of the date
first set forth above.

                           WASTE CORPORATION OF AMERICA, INC.

                           By:  /s/ Jerome M. Kruszka
                                ------------------------------------------------
                           Printed Name:         Jerome M. Kruszka
                                        ----------------------------------------
                           Title:                President
                                 -----------------------------------------------

                           EXECUTIVE:

                           /s/ Tom J. Fatjo, III

                           Printed Name:         Tom J. Fatjo, III
                                        ----------------------------------------
                           Title:                Senior Vice President
                                 -----------------------------------------------

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                                   APPENDIX A

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                    NONSTATUTORY STOCK OPTION GRANT AGREEMENT
                          PURSUANT TO THE TERMS OF THE
                       WASTE CORPORATION OF AMERICA, INC.
                      1999 NON-QUALIFIED STOCK OPTION PLAN

         1. Grant of Nonstatutory Stock Option. Waste Corporation of America,
Inc., a Delaware corporation (the "Company"), hereby grants to Tom J. Fatjo, III
("Optionee") the right, privilege and option as herein set forth (the
"Nonstatutory Stock Option") to purchase up to 83,350 shares (the "Shares") of
Common Stock, $.01 par value per share, of the Company (or any security or other
property into which such common stock may be changed by reason of any
transaction or event of the type described in the Company's Certificate of
Incorporation, as amended, or in the Plan) (the "Stock"), in accordance with the
terms of this agreement. The Nonstatutory Stock Option is granted pursuant to
the Waste Corporation of America, Inc. 1999 Non-Qualified Stock Option Plan (the
"Plan") and is subject to the provisions of the Plan, which is hereby
incorporated herein and is made a part hereof, as well as the provisions of this
document. By acceptance of the Nonstatutory Stock Option, Optionee agrees to be
bound by all of the terms, provisions, conditions and limitations of the Plan
and the Nonstatutory Stock Option. The Shares, when issued to Optionee upon the
exercise of the Nonstatutory Stock Option, shall be fully paid and
nonassessable. All capitalized terms used herein shall have the same meanings as
set forth in the Plan document unless otherwise specifically provided. The
Nonstatutory Stock Option is not intended to qualify as an "incentive stock
option" within the meaning of Section 422 of the Internal Revenue Code of 1986,
as amended (the "Code").

         2. Option Term. Subject to earlier termination as provided herein, or
in the Plan, the Nonstatutory Stock Option shall expire on the tenth (10th)
anniversary of the effective date hereof. The period during which the
Nonstatutory Stock Option is in effect shall be referred to as the "Option
Period".

         3. Option Exercise Price. The exercise price (the "Option Price") of
the Shares subject to the Nonstatutory Stock Option shall be $2.60 per Share for
Shares purchased during the Option Period.

         4. Vesting. Twenty-five percent (25%) of the total number of Shares
subject to the Nonstatutory Stock Option shall vest on the first anniversary of
the effective date hereof. An additional eighteen and three quarters percent
(18.75%) of the total Shares subject to the Nonstatutory Stock Option shall
become vested on each of the second (2nd), third (3rd), fourth (4th) and fifth
(5th) anniversaries of the effective date hereof and all or any portion of the
vested Shares that may be acquired under the Nonstatutory Stock Option may be
purchased at any time after becoming vested during the Option Period. In
addition; notwithstanding the preceding provisions of this Paragraph 4 to the
contrary, the total number of Shares subject to the Nonstatutory Stock Option
shall become fully vested upon the earliest of (i) the Company's termination of
the Optionee's employment other than for "cause" as that term is defined in
Section 2(c) of Optionee's Employment Agreement of even date herewith, (ii) the
Optionee's termination of Optionee's employment for "good reason" as that term
is defined in Section 2(d) of Optionee's Employment Agreement of even date
herewith, or (iii) the occurrence of one of the events described in Paragraph 4a
or 4b set forth immediately below.

<PAGE>

         a. Initial Public Offering. Shares subject to the Nonstatutory Stock
Option shall become fully vested upon the date that the Company completes an
initial public offering of the Company's equity securities under the Securities
Act of 1933, as amended (the "Securities Act") at a value of at least $6.00 per
share of such equity security (disregarding the effect of stock splits on the
public offering price).

         b. Change in Control. Shares subject to the Nonstatutory Stock Option
shall become fully vested upon the occurrence of a change in control. Change in
control shall mean the occurrence of any of the following events:

                  (1) An acquisition of any common stock ("Common Stock"), par
         value $.01 per share, of the Company or the Subsidiary (as defined
         below) or other securities entitled to vote, or convertible into or
         exercisable for securities entitled to vote, in the election of
         directors (such Common Stock and other securities hereinafter being
         referred to as the "Voting Securities") of the Company or the
         Subsidiary by any Person (as specified in Section 3(a)(9) of the
         Securities Exchange Act of 1934, as amended (the "Exchange Act"), and
         used in Sections 13(d) and 14(d) thereof), including for purposes of
         this Section the Company or its Affiliates (as defined below) including
         the Subsidiary, immediately after which such Person has Beneficial
         Ownership (as defined below) of fifty percent (50%) or more of the
         combined voting power of the Company's or the Subsidiary's then
         outstanding Voting Securities; provided, however, a Change in Control
         shall not be deemed to have occurred by reason of an acquisition of
         fifty percent (50%) or more of the Company's or the Subsidiary's Voting
         Securities by an employee benefit plan maintained by the Company or any
         of its Affiliates (including the Subsidiary) or by a Person in a
         Non-Control Transaction (as defined below); or

                  (2) The individuals who, as of the date of this Agreement are
         members of the Board or the Board of Directors of the Subsidiary (the
         "Incumbent Board"), cease for any reason to constitute at least two
         thirds (2/3) of the members of the Board; provided, however, that an
         individual will be treated as a member of the Incumbent Board if the
         members of the Board or the Board of Directors of the Subsidiary prior
         to such individual's nomination unanimously approve such individual's
         nomination and election to the Board or the Board of Directors of the
         Subsidiary and provided further that no individual shall be considered
         a member of the Incumbent Board if such individual initially assumed
         office as a result of either an actual or threatened proxy contest or
         other actual or threatened solicitation of proxies or consents by or on
         behalf of a Person other than the Board or the Board of Directors of
         the Subsidiary (a "Proxy Contest"), including by reason of any
         agreement intended to avoid or settle any Proxy Contest; or

                  (3) The consummation of:

                           (i)      A merger, consolidation or reorganization
                                    with or into the Company or the Subsidiary
                                    or in which securities of the Company or the
                                    Subsidiary are issued (a "Merger"), unless

                                       2
<PAGE>

                                    such Merger, consolidation or reorganization
                                    occurs in connection with a Non-Control
                                    Transaction;

                           (ii)     A complete liquidation or dissolution of the
                                    Company or the Subsidiary; or

                           (iii)    The sale or other disposition of all or
                                    substantially all of the assets of the
                                    Company or the Subsidiary to any Person
                                    (other than a transfer to an employee
                                    benefit plan or Affiliate of the Company or
                                    under conditions that would constitute a
                                    Non-Control Transaction with the disposition
                                    of assets being regarded as a Merger of this
                                    purpose).

                  Notwithstanding any other provision hereof to the contrary, no
         transaction involving a sale or exchange or other disposition of Voting
         Securities that are issued and outstanding on the Effective Date for a
         price of less than three dollars ($3.00) a share shall qualify as a
         Change in Control. As used in this Section 4, the following terms have
         the following meanings:

                           (1) "Affiliate" shall have the meaning set forth in
                  Rule 12b-2 promulgated under Section 12 of the Exchange Act.

                           (2) "Beneficial Ownership," "Beneficially Owned" and
                  the like means having, with respect to a security or group of
                  securities, the power to control or direct the voting or
                  disposition of Voting Securities, as determined by Rule 13d-3
                  under the Exchange Act.

                           (3) "Non-Control Transaction" means a Merger whereby
                  (A) the individuals who were the president, chief executive
                  officer and the chief financial officer of the Company or the
                  Subsidiary hold such respective positions with, and
                  individuals who were members of the Incumbent Board
                  immediately prior to the execution of the agreement providing
                  for the Merger, constitute at least a majority of the members
                  of the board of directors of, the surviving corporation and
                  (B) either (1) fifty percent (50%) or more of the combined
                  voting power of the then outstanding voting securities of the
                  surviving corporation is Beneficially Owned directly by the
                  Beneficial Owners of the Company's or the Subsidiary's Voting
                  Securities prior to the Merger or (2) the president, chief
                  executive officer and/or the chief financial officer of the
                  Company, as a result of such merger, acquire (or their
                  Affiliates acquire) fifty percent (50%) or more of the
                  combined voting power of the outstanding voting securities of
                  the surviving corporation.

                           (4) "Subsidiary" means WCA Waste Systems, Inc., a
                  Delaware corporation, or any other entity in which the Company
                  owns fifty percent (50%) or more of the outstanding equity
                  securities entitled to vote in the election of directors or
                  their equivalent and shall include any successor to the
                  business and/or assets of such entity.

                                       3
<PAGE>

         5. Method of Exercise. To exercise the Nonstatutory Stock Option,
Optionee shall deliver written notice to the Company stating the number of
Shares with respect to which the Nonstatutory Stock Option is being exercised
together with payment for such Shares. Payment shall be made (i) in cash or by
check acceptable to Company, (ii) provided Optionee can do so without incurring
liability. under Section 16(b) of the Exchange Act, in nonforfeitable,
unrestricted shares of the Company's Common Stock owned by Optionee at the time
of exercise of the Nonstatutory Stock Option having an aggregate fair market
value at the date of exercise equal to the aggregate Option Price as set forth
in Paragraph 3 herein, (iii) in shares to be received upon exercise of the
Option in accordance with the terms of the Plan or (iv) by a combination of (i),
(ii) and (iii).

         6. Certain Restrictions. By exercising the Nonstatutory Stock Option,
Optionee agrees that if at the time of such exercise the sale of Shares issued
hereunder is not covered by a valid registration statement filed under the
Securities Act, Optionee will acquire the Shares for his own account and without
a view to resale or distribution in violation of the Securities Act or any other
securities law, and upon any such acquisition Optionee will enter into such
written representations, warranties and agreements as Company may reasonably
request in order to comply with the Securities Act or any other securities law
or with this document. Absent such registration statement, Shares of Common
Stock issued pursuant to exercise of this Nonstatutory Stock Option shall
include the following legends and such other legends as in the opinion of the
Company's counsel may be required by the securities laws of any state in which
the Optionee resides:

                  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER
                  THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY SALE,
                  TRANSFER, PLEDGE OR OTHER DISPOSITION THEREOF MAY BE MADE ONLY
                  (i) IN A TRANSACTION REGISTERED UNDER SAID ACT OR (ii) IF AN
                  EXEMPTION FROM REGISTRATION UNDER SAID ACT IS AVAILABLE AND IS
                  ESTABLISHED TO THE SATISFACTION OF THE ISSUER.

Optionee agrees that the Company shall not be obligated to take any affirmative
action in order to cause the issuance or transfer of Shares hereunder to comply
with any law, rule or regulation that applies to the Shares subject to the
Nonstatutory Stock Option.

         7. Termination of Employment, Retirement, Death and Disability.
Termination of employment (as specially defined below), retirement, death or
disability of Optionee shall affect Optionee's rights under the Nonstatutory
Stock Option as follows:

                  c. Termination of employment Other than for Retirement, Death
         or Disability. If the employment of Optionee terminates (other than as
         a result of retirement, death or disability) (i) no further vesting
         shall occur after the date of said termination, (ii) Optionee may
         exercise his rights hereunder with respect to that portion of the
         Nonstatutory Stock Option that is vested as of the date of such
         termination for a period that shall end on the earlier of (1) the
         expiration of the Option Term or (2) the date that occurs one hundred
         eighty (180) calendar days after such termination date, and (iii) the

                                       4
<PAGE>

         Nonstatutory Stock Option and all rights hereunder shall wholly and
         completely terminate at the close of business on the last day the
         Nonstatutory Stock Option may be exercised.

                  d. Termination by Retirement, Death or Disability. If the
         employment of Optionee terminates on account of Optionee's retirement,
         death or disability, (i) any nonvested portion of the Nonstatutory
         Stock Option shall immediately terminate, and no further vesting shall
         occur, and (ii) subject to earlier expiration of the Option Period
         hereunder, any vested portion of the Nonstatutory Stock Option that has
         become exercisable may be exercised:

                           (1) in the case of termination of Optionee's
                  employment on account of retirement or disability, not later
                  than the last day of the one hundred eighty (180) day period
                  immediately following the end of the taxable year of the
                  Company in which occurs the date of retirement or disability;
                  and

                           (2) in the case of death of Optionee while serving as
                  a member of the Board or while in the employ of the Company or
                  following his retirement or incurring a disability, but prior
                  to expiration of the period in which the Optionee otherwise
                  could have exercised the Nonstatutory Stock Option, not later
                  than the last day of the one hundred eighty (180) day period
                  immediately following the end of the taxable year of the
                  Company in which occurs the date such date of death.

         The Nonstatutory Stock Option may be exercised by Optionee or, in the
case of death, by the executor or administrator of Optionee's estate, or the
person or persons to whom Optionee's rights under the Nonstatutory Stock Option
shall pass by will or by the applicable laws of descent and distribution, or in
the case of disability, by Optionee's personal representative.

         For all purposes of this Nonstatutory Stock Option, employment has the
same meaning as set forth in the Plan document.

         8. Changes in the Company's Capital Structure. The existence of the
Nonstatutory Stock Option shall not affect in any way the right or power of the
Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company's capital
structure or its business, or any merger or consolidation of Company or any
issue of bonds, debentures, preferred or prior preference stock ahead of or
affecting the Shares or the rights thereof, or the dissolution or liquidation of
the Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar
character or otherwise.

         9. Adjustment of Shares. In the event of stock dividends, spin-offs of
assets, or other extraordinary dividends, stock splits, combinations of shares,
recapitalizations, mergers, consolidations, reorganizations, liquidations,
issuances of rights or warrants and similar transactions or events affecting the
Nonstatutory Stock Option, the number of Shares subject to the Nonstatutory
Stock Option shall be appropriately adjusted pursuant to the terms of the Plan.

                                       5
<PAGE>

         10. No Rights in Shares. Optionee shall have no rights as a stockholder
in respect of Shares until such Optionee becomes the holder of record of such
Shares.

         11. Shares Reserved. The Company shall at all times during the Option
Period reserve and keep available such number of Shares as will be sufficient to
satisfy the requirements of this Nonstatutory Stock Option.

         12. Non transferability of Nonstatutory Stock Option. The Nonstatutory
Stock Option granted pursuant to this document is not transferable other than by
will, the laws of descent and distribution. The Nonstatutory Stock Option will
be exercisable during Optionee's lifetime only by Optionee or by Optionee's
guardian or legal representative.

         13. Amendment and Termination. No amendment or termination of the
Nonstatutory Stock Option shall be made by the Board or the Committee at any
time without the written consent of Optionee. No amendment of the Plan will
adversely affect the rights, privileges and option of Optionee under the
Nonstatutory Stock Option without consent of Optionee.

         14. No Guarantee of Employment. The Nonstatutory Stock Option shall not
confer upon Optionee any right with respect to continuance of employment or
other service with the Company or any parent or subsidiary, nor shall it
interfere in any way with any right the Company or any parent or subsidiary
would otherwise have to terminate such Optionee's employment or other service at
any time.

         15. Withholding of Taxes. The Company shall have the right to (i) make
deductions from the number of Shares otherwise deliverable upon exercise of the
Nonstatutory Stock Option in an amount sufficient. to satisfy withholding of any
federal, state or local taxes required by law, or (ii) take such other action as
may be necessary or appropriate to satisfy any such tax withholding obligations.

         16. No Guarantee of Tax Consequences. Neither the Company or any parent
or subsidiary nor the Committee makes any commitment or guarantee that any
federal or state tax treatment will apply or be available to any person eligible
for benefits under the Nonstatutory Stock Option.

         17. Severability. In the event that any provision of the Nonstatutory
Stock Option shall be held illegal, invalid, or unenforceable for any reason,
such provision shall be fully severable, but shall not affect the remaining
provisions of the Nonstatutory Stock Option, and the Nonstatutory Stock Option
shall be construed and enforced as if the illegal, invalid, or unenforceable
provision had never been included herein.

         18. Governing Law. The Nonstatutory Stock Option shall be construed in
accordance with the laws of the State of Texas to the extent federal law does
not supersede and preempt Texas law.

                                       6
<PAGE>

         19. Limitation on this Nonstatutory Stock Option. Notwithstanding
anything to the contrary herein or in said Plan, this option is expressly
conditioned upon the First Amendment of the Plan being approved by the
shareholders of the Company and shall not be exercisable until such approval has
been secured.

                 [This space intentionally has been left blank.]

                                       7
<PAGE>

Executed effective as of the 28th day of September, 2000.

                                    "COMPANY"

                                    WASTE CORPORATION OF AMERICA, INC.

                                    By: /s/ JEROME M. KRUSZKA
                                        ---------------------------------------
                                    Printed Name:         Jerome M. Kruszka
                                                 ------------------------------
                                    Title:                President
                                          -------------------------------------

Accepted effective as of the 28th day of September, 2000.

                                   "OPTIONEE"

                                    By: /s/ Tom J. Fatjo, III
                                        ---------------------------------------
                                    Printed Name:         Tom J. Fatjo, III
                                                 ------------------------------
                                    Title:                Senior Vice President
                                          -------------------------------------

                                       8
<PAGE>

                                   APPENDIX B

<PAGE>

                                   APPENDIX B

                                 WCA BONUS PLAN
                               SEPTEMBER 26, 2000

WCA WASTE SYSTEMS INC.: 70% weighting of overall Bonus

-    Milestones         (1)  No default or Event of Default during
                             the year unless waived by the lender
                        (2)  Company met its CapEx budget, unless
                             overages were approved by the Board

BONUS FORMULA:

<Table>
<S>                                    <C>                    <C>                       <C>
Bonus % of Base                               15%                    50%                       75%
                                       ------------------------------------------------------------
EBITDA(1) % of Budget                         95%                   100%                      110%
</Table>

-        For negative variance, for every 1% EBITDA performance change there is
         a 7% bonus change.

-        For positive variance, for every 1% EBITDA performance change there is
         a 2.5% bonus change

-        Bonus to be paid as soon as practicable after measurement period. If
         employment terminates during the measurement period, a pro rata bonus
         will be paid based on the number of days the Executive was employed
         during the measurement period.

<Table>
<Caption>
                          2001               2002              2003              2004              2005
                          ----               ----              ----              ----              ----
<S>                      <C>                <C>               <C>               <C>                <C>
EBITDA                   $18.9M             $20.2M            $21.9M            $23.7M
CapEx                    $ 7.0M             $ 6.4M            $ 7.3M            $ 5.5M
</Table>

WASTE CORPORATION OF AMERICA, INC., ("SOUTHERN"): 30% weighting of overall bonus

-    Milestones         (1)  EBITDA meets or exceeds debt service(2) and no
                             breach of covenant
                        (2)  Within 10% of CapEx budget

--------
(1) EBITDA is before Executives' bonuses.

(2) Debt service at Waste Corporation of America, Inc. ("Southern") is net of
    interest income.

<PAGE>

BONUS FORMULA:

<Table>
<S>                                    <C>                    <C>                       <C>
Bonus % of Base                               20%                    50%                       75%
                                       ------------------------------------------------------------
EBITDA % of Budget                            95%                   100%                      110%
</Table>

-        For negative variance, for every 1% EBITDA performance change there is
         a 6% bonus change.

-        For positive variance, for every 1% EBITDA performance change there is
         a 2.5% bonus change

-        Bonus to be paid as soon as practicable after measurement period. If
         employment terminates during the measurement period, a pro rata bonus
         will be paid based on the number of days the Executive was employed
         during the measurement period.

<Table>
<Caption>
                       2001              2002              2003              2004               2005
                       ----              ----              ----              ----               ----
<S>                  <C>               <C>               <C>               <C>                  <C>
EBITDA               $3.958M           $4.414M           $4.685M           $4.959M
CapEx                $  690K           $  685K           $  440K           $  430K
</Table>

Example #1

-        Waste Systems does 105% of budget

-        Southern Waste hits 100% of budget

<Table>
<Caption>
                             MIX          X      BONUS     =    WGT. AVG.
                           ---------   ------- ---------  --- -------------
<S>                        <C>         <C>     <C>        <C> <C>
Waste Systems            =   70%          X      62.5%     =     43.75%
Southern                 =   30%          X      50.0%     =     15.00%
                             Bonus = 58.75% of Base
</Table>

Example #2 - Best Case

-        Waste Systems does 110% of budget

-        Southern Waste hits 110% of budget

<Table>
<Caption>
                             MIX          X      BONUS     =    WGT. AVG.
                           ---------   ------- ---------  --- -------------
<S>                        <C>         <C>     <C>        <C> <C>
Waste Systems            =   70%          X      75%       =    52.50%
Southern                 =   30%          X      75%       =    22.50%
                             Bonus = 75% of Base
</Table>

Example #3 - Worst Paying Case

-        Waste Systems does 95% of budget

-        Southern Waste hits 95% of budget

<Table>
<Caption>
                             MIX          X      BONUS     =    WGT. AVG.
                           ---------   ------- ---------  --- -------------
<S>                        <C>         <C>     <C>        <C> <C>
Waste Systems            =   70%          X      15%       =      10.50%
Southern                 =   30%          X      20%       =       6.00%
                             Bonus = 16.50% of Base
</Table>

<PAGE>
                                  AMENDMENT #1
                              EMPLOYMENT AGREEMENT

This Amendment 1 to the Employment Agreement dated September 27, 2000 is entered
into between Waste Corporation of America, Inc. (the "Company" or the Employer")
and Tom J. Fatjo, III (the "Executive") and shall be effective as of September
30, 2001.

The following Amendment has been agreed upon by both parties:

SECTION 4 SALARY. Except if Executive's employment is terminated pursuant to
Section 2(a), (b), (c) or (d) (in which case Section 7(a) applies) and except as
otherwise provided in Section 2(b), during the Term, Employer shall pay
Executive a base salary of $187,500 per year, payable bi-monthly ("Base
Salary"). The Base Salary will be increased each year on the anniversary of the
Employment Agreement by 5% (five percent).

The parties have executed this Amendment 1 as of this ______ day of September,
2001.

                                    Waste Corporation of America, Inc.

                                    By:  /s/ Jerome M. Kruszka
                                         ______________________________________
                                    Printed Name:   Jerome M. Kruszka
                                                 ______________________________
                                    Title:          President
                                           ____________________________________

                                    Executive

                                    By:  /s/ Tom J. Fatjo, III
                                         ______________________________________
                                    Printed Name:   Tom J. Fatjo, III
                                                 ______________________________
<PAGE>
                               SECOND AMENDMENT TO
                              EMPLOYMENT AGREEMENT

      This Second Amendment to Employment Agreement ("Amendment"), is entered
into between WCA Management Company, L.P. (the "Company"), Waste Corporation of
America, Inc. (the "Guarantor") and Tom J. Fatjo, III (the "Executive") and is
effective as of May 1, 2002.

                                    RECITALS

      WHEREAS, the Executive is currently employed as an officer of the Company
pursuant to that certain Employment Agreement dated as of September 27, 2000, as
amended by that certain Amendment Number One dated September 30, 2001
(collectively, the "Employment Agreement") by and between the Guarantor and
Executive, which Employment Agreement was assigned to and assumed by the Company
as of January 1, 2002;

      WHEREAS, the Employment Agreement provides for certain payments, or
acceleration of payments to the Executive in the event of a "Change in Control"
as such term is defined in the Employment Agreement;

      WHEREAS, the Executive was granted nonstatutory stock options (the "Stock
Options") pursuant to the terms of the Waste Corporation of America, Inc. 1999
Non-Qualified Stock Option Plan (the "Stock Option Plan");

      WHEREAS, the vesting of such Stock Options may be accelerated in the event
of a "Change in Control" as defined in such Stock Option Plan; and

      WHEREAS, such payments and such acceleration of vesting of the Stock
Options could result in "excess parachute payments" (as such term is defined in
Section 280G(b) of the Internal Revenue Code of 1986 as amended (the "Code") to
the Executive, resulting in an excise tax to the Executive under Section 4999 of
the Code and a disallowance of deductions to the Company under Section 280G(a)
of the Code;

      NOW THEREFORE, in consideration of the mutual terms, conditions, and
covenants set forth herein, the Company and Executive agree to amend the
Employment Agreement as follows:

1.    Gross-Up Payment. If any payment or distribution by the Company or any of
      its affiliates or any acceleration of such payment or vesting of the Stock
      Options to or for the Executive, whether paid or payable or distributed or
      distributable under the Employment Agreement, this Amendment or under any
      other agreement, policy, plan, program or arrangement, including but not
      limited to the Employment Agreement or the Stock Option Plan, or the lapse
      or termination of any restriction under any agreement, policy, plan,
      program or arrangement (a "Payment"), would be subject to the excise tax
      imposed by Section 4999 of the Code by reason of being considered
      contingent on a change in ownership or control of the Company, with the
      meaning of Section 280G of the Code, or to any similar tax imposed by
      state or local law, or any interest or penalties with respect to such tax
      (such tax or taxes, together with any interest or penalties being
      hereafter collectively referred to as the "Excise Tax"), then Executive
      shall be entitled to receive

                                       1
<PAGE>
      an additional payment or payments (collectively, a "Gross-Up Payment").
      The Gross-Up Payment will be in an amount such that, after payment by
      Executive of all taxes (including any interest of penalties imposed with
      respect to such taxes), including any income tax or Excise Tax imposed on
      the Gross-Up Payment, Executive retains an amount equal to the Payment
      before any Excise Tax is imposed. Any Gross-Up Payment shall be due and
      payable to the Executive thirty (30) days prior to the due date of any
      Excise Tax.

2.    Scale-Back Agreement. Notwithstanding the foregoing, if no Excise Tax
      would apply if the aggregate Payments were reduced by three percent (3%),
      then the aggregate Payments shall be reduced by the amount necessary to
      avoid application of the Excise Tax, in such manner as the Executive shall
      direct, and no Gross-Up Payment will be made.

3.    Determination of Parachute Payments or Gross-Up. Any determination of the
      amount of Payments or Gross-Up required to be made under this Amendment
      shall be made in writing by a certified public accountant of the
      Executive's choosing, whose determination shall be conclusive and binding
      upon the Executive and the Company for all purposes. For this purpose, the
      accountant may make reasonable assumptions and approximations concerning
      applicable taxes and may rely on reasonable, good faith interpretations
      concerning the application of Sections 280G and 4999 of the Code. The
      Company and Executive shall promptly furnish to the accountant such
      information and documents as the accountant may reasonably request in
      order to make a determination hereunder. The Company shall bear the fees
      of the accountant and all costs the accountant may reasonably incur in
      connection with any calculations contemplated hereunder. The accountant
      shall be required to provide a detailed determination to the Company and
      the Executive within thirty (30) days after the date of receipt of all
      relevant information.

4.    Challenge by the IRS. If federal, state and local income or other tax
      returns filed by Executive are consistent with the determination of the
      accountant under paragraph 4 above, and the Internal Revenue Service or
      any other taxing authority asserts a claim or notice of deficiency
      (referred to in this Section as a "claim") against the Executive that, if
      successful, would require the payment by the Executive of an Excise Tax,
      the Company shall be obligated to make the Gross-Up Payment set forth
      above, provided that the Executive (i) notifies the Company within five
      (5) business days of the claim; (ii) does not pay such claim prior to the
      earlier of (1) the expiration of the thirty (30) calendar day period
      following the date on which he gives such notice to the Company and (2)
      the date that any payment of amount 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 will:

      (i)   Provide the Company with any written records or documents in his or
            her possession relating to such claim reasonably requested by the
            Company;

      (ii)  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

                                       2
<PAGE>
            competent in respect of the subject matter and reasonably selected
            by the Company;

      (iii) Cooperate with the Company in good faith in order to effectively
            contest such claim, which may include the payment of an amount
            advanced by the Company and assertion of claim for refund; and

      (iv)  Permit the Company to participate in any proceedings relating to
            such claim;

      provided, however, that the Company will bear and pay directly all costs
      and expenses (including interest and penalties) incurred in connection
      with such contest and will indemnify and hold harmless Executive, on an
      after-tax basis, for and against any Excise Tax or income tax, including
      interest and penalties with respect thereto, imposed as a result of such
      contest and any such payments. If the Company directs Executive to pay the
      tax claimed, or otherwise fails to contest the claim as described above,
      the Company will immediately pay to Executive the amount of the deficiency
      payment claimed by the IRS to be due, including but not limited to any
      interest, penalty or Excise Tax due on such deficiency (such payments to
      be collectively referred to as the "Deficiency Payment") and shall also
      pay to the Executive a Gross-Up Payment in an amount necessary to pay the
      income tax liability of the Executive on the Deficiency Payment and the
      Gross-Up Payment.

5.    Dispute Resolution. The Company and Executive agree that any dispute
      regarding the interpretation or enforcement of the Employment Agreement or
      this Amendment shall be decided by confidential, final and binding
      arbitration rather than by litigation in court, trial by jury or other
      forum. Executive and Company agree that in any dispute resolution
      proceedings arising out of the Employment Agreement or this Amendment, the
      Company shall be responsible for all reasonable attorney's fees and costs
      incurred by Executive, not to exceed $50,000 in connection with the
      resolution of the dispute in addition to any other relief granted.

6.    Guarantee by Waste Corporation of America, Inc. Notwithstanding the
      assignment of the Employment Agreement from the Guarantor to the Company,
      and the acceptance of all obligations of the Guarantor under the
      Employment Agreement by the Company, the Guarantor shall remain jointly
      and severally liable with respect to all obligations of the Guarantor
      under the Employment Agreement and hereby guarantees all the obligations
      of the Company under this Amendment.

7.    Employment Agreement Affirmed. Except as specifically amended by this
      amendment, the Employment Agreement is hereby ratified and affirmed in all
      respects.

      The parties have executed this Amendment as of the date first set forth
      above.

                           [SIGNATURE PAGE TO FOLLOW]

                                       3
<PAGE>
WASTE CORPORATION OF AMERICA, INC.

By:     /s/ Jerome M. Kruszka
   -----------------------------------------
Printed Name: Jerome M. Kruszka
             -------------------------------
Title:  President
      --------------------------------------

WCA MANAGEMENT COMPANY, L.P.

By:      WCA Management General, Inc.

         By:     /s/ Jerome M. Kruszka
            --------------------------------
         Printed Name: Jerome M. Kruszka
                      ----------------------
         Title:  President
               -----------------------------

Its:     General Partner

EXECUTIVE:

By:     /s/ Tom J. Fatjo, III
   -----------------------------------------
Printed Name: Tom J. Fatjo, III
             -------------------------------
Title:  Senior Vice President
      --------------------------------------

                                       4
<PAGE>
                               THIRD AMENDMENT TO
                              EMPLOYMENT AGREEMENT

      This Third Amendment to Employment Agreement ("Third Amendment"), is
entered into between WCA Management Company, L.P. (the "Company"), Waste
Corporation of America, Inc. (the "Guarantor") and Tom J. Fatjo, III (the
"Executive") and is entered into on April 13, 2004 ("Effective Date").

                                    RECITALS

      WHEREAS, the Executive is currently employed as an officer of the Company
pursuant to that certain Employment Agreement dated as of September 27, 2000 by
and between the Guarantor and Executive, which was assigned to and assumed by
the Company as of January 1, 2002 and which was amended by that certain First
Amendment to Employment Agreement dated September 30, 2001 and that certain
Second Amendment to Employment Agreement on or about May 1, 2002 (such
agreement, as assigned and amended, the "Employment Agreement"); and

      WHEREAS, the parties to the Employment desire to renew and extend the term
of the Employment Agreement and to amend the Agreement as set forth in this
Third Amendment.

      NOW THEREFORE, in consideration of the mutual terms, conditions, and
covenants set forth herein, the Company and Executive agree to amend the
Employment Agreement as follows:

1.    Section 1, "Term of Employment" is amended by striking the section in its
      entirety and substituting the following in its stead:

      "The Company hereby agrees to employ the Executive, and the Executive
      hereby agrees to remain in the employ of the Company, for a three-year
      period commencing on the Effective Date of this Agreement and on each
      subsequent anniversary of the Effective Date this Agreement will
      automatically renew for a three year term (the "Term"). This Agreement
      shall terminate on the earlier of (a) the last day of the Term or (b) such
      earlier date as this Agreement is terminated pursuant to Section 2."

2.    Section 2, "Termination of Employment" is amended by striking subsection
      (e) in its entirety.

3.    Section 7, "Effects of Termination of Employment" is amended by striking
      "equal to one (1) year of Executives' Base Salary" in the second sentence
      in subsection (a) and substituting the following in its stead:

      "equal to the Executives' Base Salary for the Remaining Term of the
      Agreement"

4.    Employment Agreement Affirmed. Except as specifically amended by this
      amendment, the Employment Agreement is hereby ratified and affirmed in all
      respects.
<PAGE>
The parties have executed this Amendment as of the date first set forth above.

WASTE CORPORATION OF AMERICA, INC.

By:      /s/ Jerome M. Kruszka
   -----------------------------------------
Printed Name: Jerome M. Kruszka
Title:        President

WCA MANAGEMENT COMPANY, L.P.

By:      WCA Management General, Inc.

         By:      /s/ Jerome M. Kruszka
            --------------------------------
         Printed Name: Jerome M. Kruszka
         Title:        President

Its:     General Partner

EXECUTIVE:

By:      /s/ Tom J. Fatjo, III
   --------------------------------------------------
Printed Name:     Tom J. Fatjo, III
Title:            Senior VP of Finance<PAGE>
                                                                   EXHIBIT 10.13

                          TAX DISAFFILIATION AGREEMENT

      TAX DISAFFILIATION AGREEMENT (the "Agreement") entered into as of May 20,
2004, but effective upon the occurrence of the Distribution (as defined herein),
by and between WCA Waste Corporation, a Delaware corporation, and Waste
Corporation of America, LLC, a Delaware limited liability company ("WCA").
Capitalized terms used in this Agreement are defined in Section 1.1 below.
Unless otherwise indicated all "Section" references in this Agreement are to
sections of this Agreement.

                                    RECITALS

      WHEREAS, WCA Waste Corporation is the common parent of an affiliated group
of corporations within the meaning of Section 1504(a) of the Internal Revenue
Code of 1986, as amended (the "Code"), (the "Consolidated Group").

      WHEREAS, the members of such Consolidated Group have heretofore joined in
filing consolidated federal Income Tax Tax Returns as well as certain
consolidated, combined, and unitary Tax Returns for state and local
jurisdictions.

      WHEREAS, prior to the Internal Reorganization, WCA was the parent
corporation of the Consolidated Group.

      WHEREAS, following and as a result of the Internal Reorganization, WCA
converted from a corporation to a limited liability corporation in which WCA
Waste Corporation has a 100 percent ownership interest.

      WHEREAS, as a result of the Internal Reorganization, WCA wholly-owns
directly or indirectly certain members of the Consolidated Group (the "WCA
Group").

      WHEREAS, the board of directors of WCA Waste Corporation determined that
it is in the best interests of WCA Waste Corporation to distribute its ownership
interest in WCA to its shareholders (the "Distribution").

      WHEREAS, subsequent to the Distribution, WCA and each member of the WCA
Group will no longer be members of the Consolidated Group except for those
purposes described herein.

      WHEREAS, WCA will be treated as a partnership for federal Income Tax
purposes after the Distribution.

      WHEREAS, the Consolidated Group and WCA desire on behalf of themselves and
their successors to set forth their rights and obligations with respect to Taxes
due for periods before and after the Distribution.

      NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
<PAGE>
                                   ARTICLE I
                                  DEFINITIONS

      1.1 For the purposes of this Agreement, the following terms have the
following meanings:

      "Agreement" shall have the meaning set forth in the preamble.

      "Business Day" means any day other than a Saturday, a Sunday, or a day on
which banking institutions located in the State of Texas are authorized or
obligated by law or executive order to close.

      "Carryforward Tax Attribute" means a deductible or creditable consolidated
United States federal Tax attribute, or similar state or local Tax attribute,
including (i) a consolidated net operating loss, a consolidated net capital
loss, a consolidated unused investment credit, a consolidated unused foreign Tax
credit, or a consolidated excess charitable contribution, and (ii) the
consolidated minimum Tax credit, credit for producing fuel from a
nonconventional source or other consolidated general business credits that can
be carried forward from one Tax period to subsequent Tax periods.

      "Code" shall have the meaning set forth in the Recitals.

      "Consolidated Group" shall have the meaning set forth in the Recitals.

      "Consolidated Return" means any consolidated, combined or unitary Tax
Return filed by WCA Waste Corporation for the Consolidated Period with respect
to United States federal, state or local Taxes, including Taxes imposed or based
on net income, net worth or gross receipts.

      "Consolidated Period" means (a) any Tax period of the Consolidated Group
ending before, with, or which includes the Distribution Date during which WCA or
any member of the WCA Group was a member of the Consolidated Group and (b) any
Tax period ending after the Distribution Date in which (i) WCA Waste Corporation
or a Continuing Member and (ii) WCA or a member of the WCA Group are required to
file a consolidated, combined or unitary state or local Tax Return.

      "Continuing Member" means any member of the Consolidated Group on the
Distribution Date other than any member of the WCA Group.

      "Distribution" shall have the meaning set forth in the Recitals.

      "Distribution Date" means the last date that the members of the WCA Group
are included in the Consolidated Group's consolidated federal Income Tax Tax
Return, either as a member or as a disregarded entity.

      "Distribution Tax" means any registration, transfer or Income Taxes
(including any Taxes incurred with regard to Section 311(b) of the Code)
directly resulting from the Distribution imposed upon WCA or any member of the
WCA Group; provided that such

                                     - 2 -
<PAGE>
term shall not refer to the collateral Tax effects of the Distribution
(including with regard to the Tax basis of assets).

      "Final Determination" shall mean with respect to any issue (a) a decision,
judgment, decree or other order by any court of competent jurisdiction, which
decision, judgment, decree or other order has become final and not subject to
further appeal; (b) a closing agreement entered into under Section 7121 of the
Code or any other binding settlement agreement entered into in connection with
or in contemplation of an administrative judicial proceeding; or (c) the
completion of the highest level of administrative proceedings if a judicial
contest is not, or is no longer, available.

      "Income Tax" means any United States federal, state, local or foreign Tax,
charge, fee, levy or other assessment which is determined with reference to (a)
net income or profits (including capital gains, gross receipts, value added or
minimum Tax, but not including sales or use Tax), or (b) multiple bases,
including but not limited to, corporate franchise, gross receipts, net worth,
privilege, doing business or occupation Taxes, if one of the bases is listed in
clause (a).

      "Independent Firm" shall have the meaning set forth in Section 6.2.

      "Internal Reorganization" means the transactions undertaken in connection
with the Distribution to restructure or separate those companies or entities
that will be owned directly or indirectly by WCA Waste Corporation on or after
the Distribution Date, on the one hand, and those companies or entities that
will be owned directly or indirectly by WCA, on the other hand.

      "Internal Reorganization Tax" means any registration, transfer or Income
Taxes (including any Taxes incurred with regard to Section 311(b) of the Code)
directly resulting from the Internal Reorganization imposed upon WCA or any
member of the WCA Group; provided that such term shall not refer to the
collateral Tax effects of the Internal Reorganization (including with regard to
the Tax basis of assets).

      "Loss" means all liabilities, costs, expenses, (including reasonable
expenses of investigation and attorneys' fees and expenses), losses, damages,
assessments, settlements or judgments arising out of or incident to the
imposition, assessment or assertion of any Tax liability.

      "Notice" shall have the meaning set forth in Section 8.2.

      "Proceeding" means any audit or other examination, protest, appeals or
other administrative or judicial proceeding relating to liability or refunds or
adjustments with respect to Taxes for any Tax period.

      "Regulations" means the regulations promulgated under the Code, in effect
from time to time.

                                     - 3 -
<PAGE>
      "Separate Return Tax Period" means a Tax period of WCA or a member of the
WCA Group which is not included in a Consolidated Period, or any Tax period of
WCA Waste Corporation subsequent to a final Consolidated Period.

      "Tax" means all taxes, charges, fees, levies, imposts, duties and other
assessments, including, without limitations, income, gross receipts, excise,
personal property, real property, sales, ad valorem, value-added, withholding,
social security, occupation, use, service, service use, leasing, leasing use,
license, payroll, franchise, transfer and recording taxes, fees and charges,
imposed by the United States or any state, local, or foreign governmental
authority whether computed on a separate, consolidated, unitary, combined or
another basis; and such term shall include (including without limitation any
duty to reimburse another party for indemnified Taxes or refunds or credit of
Taxes) any interest, fines, penalties and additional amounts attributable to,
imposed on, or with respect to, any such taxes, charges, fees, levies, imposts,
duties or other assessments, and interest thereon.

      "Tax Authority" means with respect to any Tax, the jurisdiction (or
political subdivision thereof) or governmental entity that imposes such Tax, and
the agency (if any) charged with the collection of such Tax for such
jurisdiction or governmental entity.

      "Tax Benefit" shall have the meaning set forth in Section 2.5(e).

      "Tax Item" shall have the meaning set forth in Section 2.1(a)(i).

      "Tax Return" shall mean any return, information return, form, report,
filing, statement, declaration or other document required to be filed with a Tax
Authority in respect of any Tax or Taxes.

      "WCA" means (a) WCA including WCA when it was a Delaware corporation prior
to its conversion to a Delaware limited liability company or (b) any successor
to WCA.

      "WCA Group" shall have the meaning set forth in the Recitals.

      "WCA Group Federal Tax Liability" means the WCA Group's consolidated
federal Income Tax liability, determined as of the end of the applicable Tax
period in accordance with Section 1.1502-1, et seq. of the Regulations as if (a)
the highest rate of Tax specified in Section 11(b) of the Code were the only
rate set forth in that subsection, and (b) the WCA Group was a separate
affiliated group of corporations filing a consolidated federal Income Tax
Return, including any elections that have been made for or on behalf of any
member of the WCA Group for the Consolidated Period pursuant to the Code or
Regulations.

      "WCA Group State and Local Tax Liability" means the WCA Group's liability
for Taxes as determined under Section 2.3(c) of this Agreement.

      "WCA Waste Corporation" means (a) WCA Waste Corporation, (b) any successor
common parent corporation described in Section 1.1502-75(d)(2)(i) or (ii) of

                                     - 4 -
<PAGE>
the Regulations, or (c) any corporation as to which WCA Waste Corporation (or
successor corporation described in clause (b) hereof) is the "predecessor"
within the meaning of Section 1.1502-1(f)(4) of the Regulations, if such
corporation acquires WCA Waste Corporation (or a successor corporation described
in clause (b) hereof) in an acquisition within the meaning of Section
1.1502-75(d)(3) of the Regulations.

                                   ARTICLE II

                  TAX RETURNS, TAX PAYMENTS AND EVENT OF LOSS

      2.1 Obligation to Prepare and File Tax Returns.

      (a) Consolidated or Combined Tax Returns.

            (i) WCA Waste Corporation shall prepare and file, or cause to be
prepared and filed, all Consolidated Returns (including any Consolidated Returns
that include the Distribution Date). WCA Waste Corporation shall have the
exclusive right, in its sole discretion, with respect to any Tax Return
described in this Section 2.1(a) to determine (1) the manner in which such Tax
Return shall be prepared and filed, including the elections, methods of
accounting, positions, conventions and principles of taxation to be used and the
manner in which any item of income, gain, loss, deduction, credit or other
attribute (a "Tax Item") shall be reported; (2) whether any extensions may be
requested; (3) the elections that will be made by WCA Waste Corporation; any
Continuing Member; WCA; and any member of the WCA Group on such Tax Return; (4)
whether any amended Tax Returns shall be filed; (5) whether any claims for
refund shall be made; (6) whether any refunds shall be paid by way of refund or
credited against liability for the related Tax; and (7) whether to retain
outside firms to prepare or review such Tax Return.

            (ii) For each Consolidated Period, WCA shall provide WCA Waste
Corporation with documents and other information including workpapers and
schedules, state apportionment schedules, fixed asset ledgers, detailed general
ledgers, Schedule M analysis and journal entries, in order for WCA Waste
Corporation to prepare Consolidated Returns for each jurisdiction in which WCA
or a member of the WCA Group is included in a Consolidated Return with any
Continuing Member, in each case, on or before the date which is fifteen (15)
Business Days prior to the due date of such Tax Return. Tax Items to be included
in any Consolidated Returns for the Consolidated Period that includes the
Distribution Date shall be determined by the method described in Section 2.1(a)
(iii).

            (iii) Notwithstanding anything in this Agreement to the contrary,
the WCA Group Federal Tax Liability for the Consolidated Period that includes
the Distribution Date shall be determined pursuant to Section 1.1502-76 of the
Regulations by including only that portion of the Tax year ending on the
Distribution Date, based on a closing of the books for Income Tax purposes and,
immediately before the Distribution Date, Tax Items will be taken into account
(to the extent not previously taken into account in the computation of the WCA
Group Federal Tax Liability) as required by the applicable intercompany
transaction Regulations.

                                     - 5 -
<PAGE>
      (b) Separate Returns.

            (i) WCA shall prepare and timely file Tax Returns and pay any member
of the WCA Group's separate Tax liabilities, or estimated separate Tax
liabilities, with respect to any Tax Authority under which a member of the WCA
Group is required to file (or does file) a separate state, local or foreign Tax
Return directly with the Tax Authority and not as a part of a Consolidated Group
Tax Return for a period that includes a Consolidated Period.

            (ii) WCA Waste Corporation and the Continuing Members, on the one
hand, and WCA and the WCA Group, on the other hand, shall each prepare and
timely file Tax Returns with, and pay their own Tax liabilities directly to, the
appropriate Tax Authorities for all Separate Return Tax Periods.

            (iii) If there are any adjustments to the Tax liabilities of any of
the members of the WCA Group for Separate Return Tax Periods or for separate
state or local Tax Returns for a Consolidated Period, WCA will control the
conduct of Proceedings related thereto, and will pay the Tax liability, if any,
directly to the relevant Tax Authority.

      2.2 Payment of Taxes for Consolidated Period to Taxing Authorities.

      (a) WCA Waste Corporation shall pay (or cause to be paid) to the
appropriate Tax Authorities, and shall indemnify WCA and each member of the WCA
Group against liability for, all Taxes with respect to the Consolidated Group's
Consolidated Returns for the Consolidated Period.

      (b) WCA shall pay (or cause to be paid) to the appropriate Tax
Authorities, and shall indemnify WCA Waste Corporation and each Continuing
Member against liability for, all Taxes with respect to any separate state,
local, or foreign Tax Return filed or required to be filed by WCA for the
Consolidated Period.

      2.3 Allocation of Taxes.

      (a) For each Consolidated Period, WCA shall be liable for and shall pay to
WCA Waste Corporation an amount equal to the sum of the WCA Group Federal Tax
Liability and the WCA Group State and Local Tax Liability for such Tax period.
The WCA Group Federal Tax Liability and the WCA Group State and Local Tax
Liability shall not include any Internal Reorganization Taxes, which are
provided for in Section 2.5(c), or any Distribution Taxes, which are provided
for in Section 2.5(d).

      (b) With respect to each Consolidated Period, the WCA Group Federal Tax
Liability for such Tax period shall be WCA 's liability for federal Income Taxes
for such Tax period, as determined in accordance with Section 2.1(a)(iii).

      (c) With respect to any Consolidated Period, the WCA Group State and Local
Tax Liability shall be the sum for such Tax period of the WCA Group's state and
local

                                     - 6 -
<PAGE>
Tax liability for each Consolidated Tax Return, as determined in a manner
consistent with the principles and procedures set forth in Section 2.1(a)(iii).

      2.4 Recomputation and Adjustment of Taxes; Amended Returns. For any
Consolidated Period, in the event of a redetermination of any Tax Item of any
Continuing Member or the WCA Group as a result of a Final Determination, the
filing of a Tax refund claim or the filing of an amended Tax Return pursuant to
which Taxes are paid to a Tax Authority or a refund of Taxes is received from a
Tax Authority, WCA Waste Corporation and WCA shall prepare jointly, in
accordance with the principles and procedures set forth in this Agreement,
revised Tax Returns, as appropriate, to reflect the redetermination of such Tax
Item as a result of such Final Determination, filing of a Tax refund claim or
filing of an amended Tax Return. Following the preparation of such revised Tax
Returns, WCA's payment obligations under Section 2.3 hereof shall be
redetermined. Without the prior written consent of WCA Waste Corporation (which
consent may be withheld in its sole discretion) WCA shall not amend any Tax
Return, including any foreign Tax Returns, for any Consolidated Period.

      2.5 Indemnification.

      (a) WCA Waste Corporation and each Continuing Member shall jointly and
severally indemnify WCA and each member of the WCA Group and their respective
directors, officers and employees, and hold them harmless from and against any
Tax or Loss that is attributable to, or results from, the failure of WCA Waste
Corporation to make any payment required to be made under this Agreement. WCA
and each member of the WCA Group shall jointly and severally indemnify WCA Waste
Corporation and each Continuing Member and their respective directors, officers
and employees, and hold them harmless from and against any Tax or Loss that is
attributable to, or results from, the failure of WCA to make any payment
required to be made under this Agreement.

      (b) WCA Waste Corporation and each Continuing Member shall jointly and
severally indemnify WCA, each member of the WCA Group and their respective
directors, officers and employees and hold them harmless from and against any
Tax or Loss attributable to the negligence of WCA Waste Corporation or any
Continuing Member in supplying WCA or any member of the WCA Group with
inaccurate or incomplete information, in connection with the preparation of any
Tax Return or the conduct of any Proceeding. WCA and each member of the WCA
Group shall jointly and severally indemnify WCA Waste Corporation, each
Continuing Member and their respective directors, officers and employees and
hold them harmless from and against any Tax or loss attributable to the
negligence of WCA or any member of the WCA Group in supplying WCA Waste
Corporation or any Continuing Member with inaccurate or incomplete information,
in connection with the preparation of any Tax Return or the conduct of any
Proceeding.

      (c) Notwithstanding anything in this Agreement to the contrary, WCA Waste
Corporation and each Continuing Member shall jointly and severally indemnify
WCA, each member of the WCA Group and their respective directors, officers and
employees, and hold them harmless from and against any Internal Reorganization
Taxes incurred by

                                     - 7 -
<PAGE>
WCA or any member of the WCA Group as a result of the Internal Reorganization,
which is not otherwise offset by net operating losses, net capital losses,
unused Tax credits and other deductible or creditable Tax attributes available
to the Consolidated Group.

      (d) Notwithstanding anything in this Agreement to the contrary, WCA Waste
Corporation and each Continuing Member shall jointly and severally indemnify
WCA, each member of the WCA Group and their respective directors, officers and
employees, and hold them harmless from and against any Distribution Taxes
incurred by WCA or any member of the WCA Group as a result of the Distribution,
which is not otherwise offset by net operating losses, net capital losses,
unused Tax credits and other deductible or creditable Tax attributes available
to the Consolidated Group.

      (E) If an indemnification obligation of any Continuing Member (including
WCA Waste Corporation) or the WCA Group (including WCA) under this Section 2.5
with respect to a Consolidated Period arises in respect of an adjustment that
makes allowable to an indemnified Continuing Member or an indemnified member of
the WCA Group any credit, deduction, amortization, exclusion from income or
other allowance (a "Tax Benefit") that would not, but for such adjustment, be
allowable, then any payment by any Continuing Member or any member of the WCA
Group pursuant to this Section 2.5 shall be an amount equal to the amount
otherwise due but for this subsection (e), minus the present value of the
product of (x) the Tax Benefit multiplied (y) (i) 100 percent for any portion of
a Tax Benefit that is treated as a credit or else (ii) by the maximum corporate
Tax rate of the Tax Authority as to which the Tax Benefit relates and as of the
period in which the Tax Benefit is first allowable. The present value of such
product shall be determined by discounting such product from the time the Tax
Benefit becomes allowable at a per annum rate equal to the long-term applicable
federal rate in effect on the last day of such period plus 200 basis points.

      2.6 Payment of Taxes for Separate Return Tax Periods. Except as otherwise
provided in this Agreement, WCA Waste Corporation shall pay or cause to be paid
all Taxes and shall be entitled to receive and retain all refunds of Taxes with
respect to Tax Returns relating to Separate Return Tax Periods for which WCA
Waste Corporation has filing responsibility, including under this Agreement.
Except as otherwise provided in this Agreement, WCA shall pay or cause to be
paid all Taxes and shall be entitled to receive and retain all refunds of Taxes
with respect to Tax Returns relating to Separate Return Tax Periods for which
WCA has filing responsibility, including under this Agreement.

      2.7 Interest. Payments pursuant to this Agreement that are not made within
the period prescribed in this Agreement or, if no period is prescribed, within
fifteen (15) Business Days after demand for payment is made shall bear interest
for the period from and including the date immediately following the fifteenth
(15th) Business Day after demand for payment is made through the date of payment
at a per annum rate equal to the long-term applicable federal rate in effect on
the last day of such period plus 200 basis points. Such interest will be payable
at the same time as the payment to which it relates

                                     - 8 -
<PAGE>
and shall be calculated on the basis of a year of 365 days and the actual number
of days for which due.

                                  ARTICLE III
                          CARRYFORWARD TAX ATTRIBUTES

      3.1 Separate Return Tax Period Carryforward Tax Attributes. Unless the
final or temporary Regulations require an allocation of particular items of
Consolidated Group's Carryforward Tax Attributes from the final Consolidated
Period to WCA's Separate Return Tax Periods, no Carryforward Tax Attributes will
be allocated to WCA or any member of the WCA Group. WCA Waste Corporation will
allocate to WCA and members of the WCA Group only that portion, if any, of
particular Carryforward Tax Attribute items as the final or temporary
Regulations require to be so allocated.

      3.2 Calculation of Carryforward Tax Attributes. Calculation of the portion
of any Carryforward Tax Attributes available to WCA and members of the WCA Group
shall be made by WCA Waste Corporation in accordance with this Article III. Such
calculation will be provided to WCA as soon as practicable but in any case
estimates shall be provided to WCA not later than a date that permits WCA
sufficient time to prepare and to timely file Tax Returns for WCA's and each
member of the WCA Group's Separate Return Tax periods, taking all extensions of
time to file Tax Returns into consideration. WCA Waste Corporation shall also
advise WCA of any adjustments to such calculations as a result of a Tax audit, a
Final Determination, or otherwise. WCA shall have a right to review WCA Waste
Corporation's calculations made pursuant to this Section 3.2.

      3.3 Tax Attributes to be Claimed for Separate Return Tax Periods. WCA
shall prepare and file all of its and for all of the members of the WCA Group's
Tax Returns for all Separate Return Tax Periods taking into account the amount
of the Carryforward Tax Attributes provided to WCA and members of the WCA Group
by WCA Waste Corporation pursuant to this Article III.

      3.4 Carryback Items from Separate Return Tax Periods. With respect to
carrybacks by WCA and members of the WCA Group of net operating losses, net
capital losses, unused Tax credits and other deductible or creditable Tax
attributes to a Consolidated Period from a Separate Return Tax Period which
would be permitted under the Code and the Regulations (or state law and state
regulations), taking into consideration the separate return limitation year
rules whenever appropriate to do so by the Code and the Regulations (or state
law and state regulations), WCA shall elect for itself and for members of the
WCA Group to relinquish any carryback period which would include any
Consolidated Period. In cases where WCA cannot relinquish the carryback period,
or if the parties otherwise agree, WCA Waste Corporation shall cooperate with
WCA in seeking Tax refunds from the appropriate Tax Authority, at WCA's expense,
and WCA or a member of the WCA Group shall be entitled to such refund, including
interest paid by the Tax Authority in connection with such refund; provided,
however, that WCA shall indemnify and hold WCA Waste Corporation harmless from
and against any and all collateral Tax consequences resulting from or

                                     - 9 -
<PAGE>
caused by the carryback of deductible or creditable Tax attributes by WCA or a
member of the WCA Group from a Separate Return Tax Period to a Consolidated
Period, including Tax attributes of WCA Waste Corporation or a Continuing Member
that expire unused and that would have been used but for such carryback. The
amount of such indemnity shall be limited to the actual Tax benefit to which WCA
Waste Corporation or a Continuing Member would have been entitled in the absence
of the carryback of the deductible or creditable Tax attribute of WCA or a
member of the WCA Group. WCA Waste Corporation shall only be entitled to
indemnification under this Section 3.4 if WCA Waste Corporation has used
reasonable efforts to avoid the collateral Tax consequence being indemnified.
WCA shall have the right to review the collateral Tax consequence being
indemnified. The amount of the refund due to WCA from WCA Waste Corporation
shall be reduced by the amount of the indemnification, if any.

      In the event that (i) WCA or a member of the WCA Group has filed a refund
claim with a Tax Authority for a Consolidated Period as contemplated by this
Section 3.4, (ii) the refund claim has been allowed, and (iii) the Tax Authority
has applied the refund to an amount owed by WCA Waste Corporation or a
Continuing Member, then WCA Waste Corporation shall pay WCA the amount of the
refund, including the amount of interest that would otherwise have been paid by
the Tax Authority to WCA or to a member of the WCA Group. The refund payment
shall be due to WCA within ten (10) Business Days after the earlier of (i) the
date that WCA Waste Corporation or a Continuing Member receives the refund from
the Tax Authority, or (ii) the date that WCA Waste Corporation receives notice
from the applicable Tax Authority that it has applied the refund to an amount
owed by WCA Waste Corporation or a Continuing Member.

                                   ARTICLE IV
                                   TAX AUDITS

      4.1 General. WCA Waste Corporation shall have the sole right to represent
the interests of the Consolidated Group, including WCA and each member of the
WCA Group, in any Proceeding in connection with any Tax liability for a
Consolidated Period for which a member of the Consolidated Group may be liable.
WCA Waste Corporation's rights shall extend to any matter pertaining to the
management and control of a Proceeding, including, without limitation, execution
of waivers, choice of forum, scheduling of conferences and the resolution of any
Tax Item. Notwithstanding the foregoing, if such Proceeding relates to Taxes as
to which WCA or a member of the WCA Group is solely liable for the payment of
such Taxes under this Agreement or otherwise and would not result in any
additional Tax liability or detriment to the Consolidated Group, WCA shall have
the right to represent the interests of WCA and members of the WCA Group in such
Proceeding so long as (x) WCA shall have agreed in writing to pay all costs and
expenses that it shall incur in connection with the Proceeding including all
attorneys', accountants' and investigatory fees and disbursements and (y) WCA
shall have acknowledged in writing its obligation to pay the Taxes and/or
indemnify the Consolidated Group against all costs and expenses with respect to
such Proceeding; provided, however, if such Proceeding would result in the
extension of the statute of limitations with respect to any Tax Return for which
any member of the

                                     - 10 -
<PAGE>
Consolidated Group may be liable, WCA Waste Corporation may, in its sole
discretion, on at least ten (10) Business Days notice to WCA, require WCA to pay
the Tax proposed and sue for a refund or to take any other action WCA Waste
Corporation may reasonably request to prevent such an extension.

      4.2 Notice of Proceeding. WCA Waste Corporation will notify WCA in writing
of any pending or threatened Proceeding in connection with any Tax liability for
which WCA may be liable, promptly upon receipt of notice of such Proceeding by
any Continuing Member. WCA will notify WCA Waste Corporation in writing of any
pending or threatened Proceeding in connection with any Tax liability for which
any member of the Consolidated Group may be liable, promptly upon receipt of
notice of such Proceeding by WCA. Notification must include a complete copy of
any written communication, and a complete written summary of any oral
communication. The failure of WCA Waste Corporation or WCA to timely forward
such notification shall not relieve the other party of its obligation to pay
such Tax, except to the extent that the failure to timely forward notification
prejudices the ability of the other party to contest the Tax liability.

                                   ARTICLE V
             COOPERATION, RECORD RETENTION, ACCESS, CONFIDENTIALITY

      5.1 Cooperation. WCA Waste Corporation and WCA will provide each other
with the cooperation and information reasonably requested by the other party in
connection with Tax planning, the preparation or filing of any Tax Return (or
claim for refund), the determination and payment of any Tax (or estimated Tax),
or the conduct of any Proceeding; provided, however, that neither party is
required to disclose privileged and confidential information. Such cooperation
and information includes: (i) promptly forwarding copies of appropriate notices
and other communications (including information document requests, revenue
agent's reports and similar reports, notices of proposed adjustments and notices
of deficiency) received from or sent to any Tax Authority, (ii) providing copies
of all relevant Tax Returns (including workpapers and schedules), and documents
relating to rulings or other determinations by Tax Authorities, (iii) providing
copies of records concerning the ownership and Tax basis of property, (iv)
providing other relevant information which either party may possess, including
explanations of documents and information provided under this Agreement, as well
as access to appropriate personnel, (v) the execution of any document that may
be necessary or reasonably helpful in connection with the filing of a Tax Return
(or claim for refund) or in connection with any Proceeding, including waivers,
consents or powers of attorney, and (vi) the use of the parties' reasonable
efforts to obtain any documentation from a governmental authority or a third
party that may be necessary or reasonable helpful in connection with any of the
foregoing.

      5.2 Record Retention; Access. WCA Waste Corporation and WCA shall each (a)
until sixty (60) days after the expiration of the relevant statute of
limitations (including any extensions of which it has actual notice) retain
records, documents, accounting data and other information (including computer
data) necessary for the preparation and filing of all Tax Returns for all
Consolidated Periods in respect of Taxes of WCA Waste

                                     - 11 -
<PAGE>
Corporation and members of the Consolidated Group or WCA and members of the WCA
Group or for the audit of such Tax Returns; and (b) give to the other party
reasonable access to such records, documents, accounting data and other
information (including computer data) and to its personnel (insuring their
cooperation) and premises, for the purpose of the review or audit of such Tax
Returns to the extent relevant to an obligation or liability of a party under
this Agreement. Prior to destroying any records, documents, data or other
information in accordance with this Section 5.2, the party wishing to destroy
such items will give the other party a reasonable opportunity to obtain such
items (at such other party's expense).

      5.3 Information Confidential. WCA Waste Corporation and each Continuing
Member and WCA and each member of the WCA Group shall hold and cause its
employees, consultants, advisors and any other agents to hold in strict
confidence, unless compelled to disclose by judicial or administrative process
or, in the opinion of its counsel, by other requirements of law, all information
(other than any such information relating solely to the business or affairs of
such party) concerning the other party furnished to it by the other party or its
representatives pursuant to this Agreement (except to the extent that such
information was (i) in the public domain through no fault of the party to which
it was furnished, or (ii) lawfully acquired from other sources by such party),
and shall not release or disclose such information to any other person, except
its auditors, attorneys, financial advisors, bankers and other consultants and
advisors who shall be advised of the provisions of this Section 5.3. Any
disclosure of information by either party to accountants for review purposes
pursuant to sections of the Agreement providing for review rights shall not
constitute a breach of confidentiality under this Agreement.

                                   ARTICLE VI
                               DISPUTE RESOLUTION

      6.1 Intent of Parties. Except as otherwise provided in this Agreement, it
is the intent of the parties that WCA's federal, state, local and foreign Tax
liability for all Tax periods, beginning with the Tax period that includes the
Distribution Date, will be determined as if the WCA and the members of the WCA
Group were a group of entities separate from the Consolidated Group. This
Agreement shall at all times be interpreted consistently with such intent.

      6.2 Dispute Resolution. In the event that WCA Waste Corporation and WCA
disagree as to the amount or calculation of any payment to be made under this
Agreement, or the interpretation or application of any provision under this
Agreement, the parties shall attempt in good faith to resolve such dispute. If
such dispute is not resolved within sixty (60) Business Days following the
commencement of the dispute, WCA Waste Corporation and WCA shall jointly retain
a nationally recognized law firm or "Big Four" accounting firm, which firm is
independent of both parties (the "Independent Firm"), to resolve the dispute.
The Independent Firm shall act as an arbitrator to resolve all points of
disagreement and its decision shall be final and binding upon all parties
involved. Following the decision of the Independent Firm, WCA Waste Corporation
and WCA shall each take or cause to be taken any action necessary to

                                     - 12 -
<PAGE>
implement the decision of the Independent Firm. The fees and expenses relating
to the Independent Firm shall be borne equally by WCA Waste Corporation and WCA.

                                  ARTICLE VII
                                   COVENANTS

      7.1 No Conversion to a Corporation. WCA agrees that it will not convert
into an entity treated as a corporation or an association for federal Income Tax
purposes before January 1st, 2006 without the prior written consent of WCA Waste
Corporation, which consent may be withheld in the sole discretion of WCA Waste
Corporation.

      7.2 No Transfer to a Corporation. WCA agrees that it will not transfer
substantially all of its assets to another entity that is treated as a
corporation or association for federal Income Tax purposes and that has
substantially the same ownership as that of WCA on the first (1st) Business Day
following the Distribution Date prior to January 1st, 2006 without the prior
written consent of WCA Waste Corporation, which consent may be withheld in the
sole discretion of WCA Waste Corporation.

                                  ARTICLE VIII
                            MISCELLANEOUS PROVISIONS

      8.1 Termination. Notwithstanding any other provision in this Agreement,
any liabilities determined under this Agreement shall not terminate any earlier
than sixty (60) days after the expiration of the applicable statute of
limitations for such liability. All other representations, warranties and
covenants under this Agreement shall survive indefinitely.

      8.2 Notices. Every notice, request, settlement, or bill or other
communication provided for in this Agreement (a "Notice") must be in writing and
may be personally served, provided a receipt is obtained, or may be sent by
certified mail, return receipt requested, postage prepaid, or may be sent by
facsimile, with acknowledgment of receipt requested, to the parties at the
following addresses (or such other address as one party may specify by Notice to
the other parties).

      If to WCA Waste Corporation:

            WCA Waste Corporation
            One River Way, Suite 1400
            Houston, Texas 77056
            Attention:    General Counsel
            Telecopy No.: (713) 572-4480

                                     - 13 -
<PAGE>
      If to WCA:

            Waste Corporation of America, LLC
            One River Way, Suite 1400
            Houston, Texas 77056
            Attention:    General Counsel
            Telecopy No.: (713) 572-4480

A Notice which is delivered personally is given as of the date specified in the
written receipt. A Notice sent by certified mail is given on the third (3rd)
Business Day following the date of mailing. A Notice by facsimile is given on
the date it is transmitted, provided that acknowledgment of receipt is received
by sender.

      8.3 Governing Law. All issues and questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by,
and construed in accordance with, the laws of the State of Texas, without giving
effect to any choice of law or conflict of law rules or provisions (whether of
the State of Texas or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Texas.

      8.4 Change in Law. If, due to any change in applicable law or regulation
or the interpretation thereof by any court of law or other governing body having
jurisdiction, subsequent to the date of the Agreement, performance of any
provision of or any transaction contemplated by this Agreement shall become
impracticable or impossible, the parties will use their best efforts to find and
employ an alternative means to achieve the same or substantially the same result
as that contemplated by this Agreement.

      8.5 Treatment of Payments. The parties hereto shall treat any payments
made pursuant to the terms of this Agreement as a capital transaction occurring
prior to the Distribution Date for all Tax purposes, except to the extent such
payments represent interest paid pursuant to Section 2.7.

      8.6 Binding Effect; No Assignment; Third Party Beneficiaries. This
Agreement shall be binding on, and shall inure to the benefit of, the parties
and their respective successors and assigns. WCA Waste Corporation and WCA
hereby guarantee the performance of all actions, agreements and obligations
provided for under this Agreement of each Continuing Member and WCA Group,
respectively. WCA Waste Corporation and WCA shall not assign any of their rights
or delegate any of their duties under this Agreement without the prior written
consent of the other party. No person (including, without limitation, any
employee of a party or any stockholder of a party) shall be, or shall be deemed
to be, a third party beneficiary of this Agreement.

      8.7 Entire Agreement; Amendments. This Agreement constitutes the entire
agreement of the parties concerning the subject matter hereof and supersedes all
prior agreements, whether or not written, concerning such subject matter. The
provisions of this Agreement may not be amended and parties hereto may not take
any action herein prohibited, or fail to perform any act herein required to be
performed by it, unless such

                                     - 14 -
<PAGE>
party has obtained the prior written consent of the other party. No other course
of dealing among the parties hereto or any delay in exercising any rights
hereunder or shall operate as a waiver of any rights hereunder. The parties
recognize and acknowledge their intention to enter into additional agreements
from time to time with respect to the allocation of Taxes not covered by this
Agreement.

      8.8 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be an original and all of which shall
constitute together the sane document.

      8.9 Interpretation; Descriptive Headings. Whenever the words "include,"
"includes" or "including" are used in this Agreement, they shall be deemed to be
followed by the words "without limitation." The words describing the singular
number shall include the plural and vice versa. The descriptive headings of this
Agreement are inserted for convenience only and do not constitute a substantive
part of this Agreement.

      8.10 Successors and Assigns. This Agreement shall inure to the benefit of,
and be binding upon the parties and their respective successors, predecessors
and assigns, but no assignment of this Agreement shall relieve any party of its
obligations without the written consent of the other party.

      IN WITNESS WHEREOF, each of the Parties has duly executed this Agreement
as of the date first set forth above.

                                       "WCA"

                                       WASTE CORPORATION OF AMERICA, LLC

                                       By:  /s/ Charles A. Casalinova
                                       Name:  Charles A. Casalinova
                                       Title: Senior Vice President

                                       WCA WASTE CORPORATION

                                       By:  /s/ Charles A. Casalinova
                                       Name:  Charles A. Casalinova
                                       Title: Senior Vice President

                                     - 15 -

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