Document:

EX-10.2

Exhibit 10.2

2007 EQUITY AND PERFORMANCE

INCENTIVE PLAN

 

 

Waste Services, Inc.

2007 Equity and Performance Incentive Plan

Plan Document

Table Of Contents

	 	 	 	 	 
	Section	 	Page #
	1. Purpose of the Plan
	 	 	2	 
	2. Definitions
	 	 	2	 
	3. Stock Subject to the Plan
	 	 	7	 
	4. Administration of the Plan
	 	 	8	 
	5. Eligibility
	 	 	9	 
	6. Option Rights
	 	 	9	 
	7. Stock Appreciation Rights (SARs)
	 	 	12	 
	8. Restricted Stock and Restricted Stock Units
	 	 	14	 
	9. Performance Compensation Awards
	 	 	16	 
	10. Other Awards
	 	 	17	 
	11. Awards to Non-Employee Directors
	 	 	18	 
	12. Fractional Shares
	 	 	18	 
	13. Transferability
	 	 	18	 
	14. Right of Recapture
	 	 	19	 
	15. Adjustment Upon Changes in Capital Structure and Other Events
	 	 	19	 
	16. Rights as a Stockholder
	 	 	21	 
	17. No Special Employment Rights; No Right to Stock Award
	 	 	21	 
	18. Securities Matters
	 	 	22	 
	19. Withholding Taxes
	 	 	22	 
	20. Amendment or Termination of the Plan
	 	 	23	 
	21. No Obligation to Exercise
	 	 	24	 
	22. Transfers Upon Death
	 	 	24	 
	23. Expenses and Receipts
	 	 	24	 
	24. Compliance with Rule 16b-3
	 	 	24	 
	25. Failure to Comply
	 	 	25	 
	26. Effective Date of Plan
	 	 	25	 
	27. Term of the Plan
	 	 	25	 
	28. Separability of Provisions
	 	 	25	 
	29. Applicable Law
	 	 	25	 
	30. Payments to Persons Other than Participants
	 	 	25	 
	31. Non-Exclusivity of Plan
	 	 	26	 
	32. Reliance on Reports
	 	 	26	 
	33. Other Agreements
	 	 	26	 

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Waste Services, Inc.

2007 Equity and Performance Incentive Plan

Plan Document

	1.	 	Purpose of the Plan
	 
	 	 	The purpose of the 2007 Equity and Performance Incentive Plan (the “Plan”) is to attract and
retain directors, officers and employees of Waste Services, Inc. and its Affiliates, and to
provide a means whereby directors, officers, employees, consultants and advisors (and
prospective directors, officers, employees, consultants and advisors) of the Company and its
Affiliates can acquire equity interests in the Company and to provide to such persons
incentives and rewards for superior performance and align the interests of such persons with
those of the Company’s stockholders.
	 
	2.	 	Definitions
	 
	 	 	As used in the Plan, the following definitions apply to the terms indicated below:
	 
	 	 	“Account” means an account established in the Participant’s name to track Awards to that
Participant.
	 
	 	 	“Affiliate” means (i) any person or entity that directly or indirectly controls, is
controlled by or is under common control with the Company and/or (ii) to the extent provided
by the Board, any person or entity in which the Company has a significant interest. The
term “control” (including, with correlative meaning, the terms “controlled by” and “under
common control with”), as applied to any person or entity, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of
such person or entity, whether through the ownership of voting or other securities, by
contract or otherwise.
	 
	 	 	“Beneficiary” means upon the employee’s death, the employee’s successors, heirs, executors
and administrators, as the case may be.
	 
	 	 	“Board” or “Board of Directors” means the Board of Directors of the Company.
	 
	 	 	“Cause” means, unless the applicable Evidence of Award provides otherwise:

	 	(i)	 	the Company or an Affiliate having “cause” to terminate a
Participant’s employment or service, as defined in any employment or consulting
agreement between the Participant and the Company or an Affiliate in effect at
the time of such termination; or
	 
	 	(ii)	 	in the absence of any such employment or consulting agreement
(or the absence of any definition of “Cause” contained therein),
	 
	 	 	 	(A) the Participant’s commission of, conviction for, plea of guilty or nolo
contendere to a felony or a crime involving moral turpitude, or other
material act or omission involving dishonesty or fraud,
	 
	 		 	(B) the Participant’s conduct that brings or is reasonably likely to bring
the Company or any of its Affiliates into public disgrace or disrepute and
that affects the Company’s or any Affiliate’s business in any material way,
	 
	 		 	(C) the Participant’s failure to perform duties as reasonably directed by
the Company or the Participant’s material violation of any rule, regulation,
policy or plan for the conduct of any service provider to the Company or its
Affiliates or its or their business (which, if curable, is not cured
within 10 days after notice thereof is provided to the Participant),

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Waste Services, Inc.

2007 Equity and Performance Incentive Plan

Plan Document

	 		 	(D) the Participant’s gross negligence, willful malfeasance or material act
of disloyalty with respect to the Company or its Affiliates (which, if
curable, is not cured within 10 days after notice thereof is provided to the
Participant), or
	 
	 		 	(E) any material breach by the Participant of any provisions of any
restrictive covenants contained in any employment agreements or similar
agreements.

	 	 	Any determination of whether Cause exists shall be made by the Committee in its sole
discretion. Any rights the Company may have hereunder in respect of the events giving rise
to Cause shall be in addition to the rights the Company may have under any other agreement
with a Participant or at law or in equity.
	 
	 	 	A “Change in Control” means the occurrence of any one of the following:

	 	(i)	 	the sale or lease of all or substantially all of the assets of
the Company to any other person or entity other than a direct or indirect
wholly-owned subsidiary or parent of the Company;
	 
	 	(ii)	 	a merger, amalgamation, consolidation or other reorganization
of the Company with any other entity (other than a direct or indirect
wholly-owned subsidiary or parent of the Company) in which the Company is not
the surviving entity or becomes owned entirely by another entity, unless at
least 50% of the outstanding voting securities of the surviving or parent
corporation, as the case may be, immediately following such transaction are
beneficially held by the same persons and/or entities that beneficially held
the outstanding voting securities of the Company immediately prior to such
transaction, and such outstanding voting securities are beneficially held by
such persons and/or entities in substantially the same proportion as such
persons and/or entities beneficially held the outstanding voting securities of
the Company immediately prior to such transaction;
	 
	 	(iii)	 	the acquisition of beneficial ownership, as such term is
defined in the Exchange Act in a single transaction or series of related
transactions (by tender offer or otherwise), of more than 50% of the voting
securities of the Company by a single person or entity (other than the Company
or any Affiliate (as such term is defined in Rule 12b-2 under the Exchange Act)
of the Company, a trustee or any other fiduciary or committee of any employee
benefit plan of the Company, or any corporation owned, directly or indirectly,
by the stockholders of the Company in substantially the same proportions as
their ownership of the stock of the Company) or “group” within the meaning of
Section 13(d)(3) of the Exchange Act, whether through the acquisition of
previously issued and outstanding voting securities or of voting securities
that have not been previously issued, or any combination thereof;
	 
	 	(iv)	 	the voluntary or involuntary dissolution, liquidation or
winding up of the Company, or the adoption of any resolution with respect
thereto; or
	 
	 	(v)	 	the individuals who constituted the Board of Directors as of
the Effective Date of the Plan (the “Incumbent Board”) ceasing for any reason
to constitute at least a majority of the Board; provided, that any person
becoming a director whose election or nomination for election was approved by a
majority of the members of the Incumbent Board shall be considered, for
purposes of this Plan, a member of the Incumbent Board; and provided further
that, notwithstanding anything herein to the contrary, a Change of Control
shall not be deemed to have occurred in

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2007 Equity and Performance Incentive Plan

Plan Document

	 	 	 	connection with (1) any public offering of the common stock of the Company
for cash; (2) any transaction with an entity or group that includes, is
affiliated with or is wholly or partially controlled by, one or more
executive officers of the Company in office immediately prior to the
transaction that would otherwise constitute a Change of Control; or (3) any
capital raising transaction (including any investment by one or more private
equity funds) for the purpose of financing acquisitions specifically
identified by the Board.

	 	 	“Code” means the Internal Revenue Code of 1986, as amended from time to time.
	 
	 	 	“Committee” means a committee of at least two people as the Board may appoint to administer
the Plan or, if no such committee has been appointed by the Board, the Board.
	 
	 	 	“Common Stock” means shares of common stock, par value $.01 per share, of the Company or any
security into which such shares of common stock may be changed by reason of any transaction
or event of the type referred to in Section 15 of this Plan.
	 
	 	 	“Company” means Waste Services, Inc., a Delaware corporation.
	 
	 	 	“Covered Employee” means a Participant who is, or is determined by the Committee to be
likely to become, a “covered employee” within the meaning of Section 162(m) of the Code (or
any successor provision).
	 
	 	 	“Date of Grant” means the date specified by the Committee on which a grant of an Award under
this Plan shall become effective (which date shall not be earlier than the date on which the
Committee takes action with respect thereto).
	 
	 	 	“Effective Date” means the first date upon which the Plan has been approved by both the
Board and the stockholders of the Company.
	 
	 	 	“Eligible Director” means a person who is (i) a “non-employee director” within the meaning
of Rule 16b-3, and (ii) an “outside director” within the meaning of Section 162(m) of the
Code.
	 
	 	 	“Eligible Person” means any (i) individual employed by the Company or an Affiliate, (ii)
Non-Employee Director; (iii) a consultant or advisor to the Company or an Affiliate who may
be offered securities registrable on Form S-8 under the Securities Act: or (iv) prospective
employees, officers, consultants or advisors who have accepted offers of employment or
consultancy from the Company or its Affiliates (and would satisfy the provisions of clauses
(i) or (iii) above once he or she begins employment or providing services to the Company or
its Affiliates).
	 
	 	 	“Evidence of Award” means an agreement, certificate, resolution or other type of writing or
other evidence approved by the Committee which sets forth the terms and conditions of the
Option Rights, Stock Appreciation Rights, Restricted Stock or Restricted Stock Units. An
Evidence of Award may be in an electronic medium, may be limited to a notation on the books
and records of the Company and, with the approval of the Committee, need not be signed by a
representative of the Company or a Participant.
	 
	 	 	“Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations
thereunder, as such law, rules and regulations may be amended from time to time.
	 
	 	 	“Fair Market Value” of a share of Common Stock means, as of any particular date, the closing
sale price per share of Common Stock on the national securities exchange on which the Common
Stock is then listed, the final reported bid sale price per share of Common Stock on the
principal

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2007 Equity and Performance Incentive Plan

Plan Document

	 	 	national automated system which the Common Stock is then quoted or, if the Common Stock is
not then listed or quoted, the fair market value of the Common Stock as determined by the
Committee.
	 
	 	 	“Incentive Stock Option” means an Option Right that is intended to qualify as an “incentive
stock option” under Section 422 of the Code and otherwise meets the requirements set forth
in the Plan.
	 
	 	 	“Incumbent Board” has the meaning given such term in the definition of “Change of Control”
	 
	 	 	“Immediate Family Members” means any person who is a “family member” of the
Participant, as such term is used in the instructions to form S-8 under the Securities Act.
	 
	 	 	“Indemnifiable Person” shall have the meaning set forth in Section 4(e) of this Plan.
	 
	 	 	“Mature Shares” means shares of Common Stock owned by a Participant that have been either
previously acquired by the Participant on the open market or meet such other requirements,
if any, as the Committee may determine are necessary in order to avoid an accounting
earnings charge on account of the use of such shares to pay the Option Price or satisfy a
withholding obligation of the Participant.
	 
	 	 	“Non-Employee Director” means a director of the Company who is not an employee of the
Company or any Affiliate.
	 
	 	 	“Non-Qualified Stock Option” means an Option Right that is not an Incentive Stock Option
within the meaning of Section 422 of the Code.
	 
	 	 	“Optionee” means the person named in an Evidence of Award evidencing an outstanding Option
Right.
	 
	 	 	“Option Period” shall have the meaning set forth in Section 6 (e) of the Plan.
	 
	 	 	“Option Price” means the purchase price payable on exercise of an Option Right.
	 
	 	 	“Option Right” means the right to purchase shares of Common Stock upon exercise of an option
granted pursuant to Section 6 or Section 11 of this Plan.
	 
	 	 	“Participant” means a person who is selected by the Committee to participate in the Plan and
to receive an Award under this Plan.
	 
	 	 	“Performance Compensation Award” shall mean any award designated by the Committee as a
Performance Compensation Award pursuant to Section 9 of the Plan.
	 
	 	 	“Performance Formula” shall mean, for a Performance Period, the one or more objective
formulae applied against the relevant Performance Goal to determine, with regard to the
Performance Compensation Award of a particular Participant, whether all, some portion but
less than all, or none of the Performance Compensation Award has been earned for the
Performance Period.
	 
	 	 	“Performance Goals” shall mean, for a Performance Period, the one or more goals established
by the Committee for the Performance Period based upon the Performance Objectives.

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Waste Services, Inc.

2007 Equity and Performance Incentive Plan

Plan Document

	 	 	“Performance Objectives” means the measurable performance objective or objectives
established pursuant to this Plan for Participants who have received, when so determined by
the Committee, Performance Compensation Awards pursuant to this Plan. The Performance
Objectives applicable to any award to a Covered Employee shall be based on specified levels
of performance of the Company (and/or one or more Affiliates, divisions or operational units
or any combination of the foregoing) and shall include the following: (i) net earnings or
net income (before or after taxes); (ii) basic or diluted earnings per share (before or
after taxes); (iii) net revenue or revenue growth; (iv) gross profit or gross profit growth;
(v) operating profit (before or after taxes); (vi) return measures (including, but not
limited to, return on assets, capital, invested capital, equity, or sales); (vii) cash flow
(including, but not limited to, operating cash flow, free cash flow, and cash flow return on
capital); (viii) earnings before or after taxes, interest, depreciation and/or amortization;
(ix) gross or operating margins; (x) share price (including, but not limited to, growth
measures and total stockholder return); (xi) expense targets; (xii) margins; (xiii)
operating efficiency; (xiv) objective measures of customer satisfaction; (xv) working
capital targets; (xvi) measures of economic value added; (xvii) enterprise value; (xviii)
sales; (xix) debt levels and net debt; (xx) timely opening of new facilities; (xxi)
completion of acquisitions; (xxii) customer retention; (xxiii) employee retention; and
(xxiv) objective measures of personal targets, goals or completion of projects.
	 
	 	 	“Performance Period” shall mean the one or more periods of time, as the Committee may
select, over which the attainment of one or more Performance Goals will be measured for the
purpose of determining a Participant’s right to, and the payment of, a Performance
Compensation Award.
	 
	 	 	“Permitted Transferee” shall have the meaning set forth in Section 13(b) of the Plan.
	 
	 	 	“Plan” means the Waste Services, Inc. 2007 Equity and Performance Incentive Plan, as it may
be amended from time to time.
	 
	 	 	“Restricted Period” means the period of time determined by the Committee during which an
Award is subject to restrictions or, as applicable, the period of time within which
performance is measured for purposes of determining whether an Award has been earned.
	 
	 	 	“Restricted Stock” means shares of Common Stock granted pursuant to Section 8 or Section 11
of this Plan as to which neither the substantial risk of forfeiture nor the prohibition on
transfers referred to in such Section 8 has lapsed.
	 
	 	 	“Restricted Stock Unit” means an unfunded and unsecured promise to deliver shares of Common
Stock, cash, other securities or other property, subject to certain restrictions (including
without limitation, a requirement that the Participant remain continuously employed or
provide continuous services for a specified period of time), granted pursuant to Section 8
or Section 11 of this Plan.
	 
	 	 	“Retirement” means a termination of employment with the Company and its Affiliate at or
after the attainment of (i) age 65, (ii) age 55 with at least 10 years of continuous
employment, (iii) 30 years of continuous employment, or (iv) as may otherwise be determined
by the Committee in its discretion.
	 
	 	 	“Rule 16b-3” means Rule 16b-3 of the Securities and Exchange Commission (or any successor
rule to the same effect) as in effect from time to time.
	 
	 	 	“SAR Period” shall have the meaning set forth in Section 7(f) of the Plan.
	 
	 	 	“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
thereunder, as such law, rules and regulations may be amended from time to time.

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2007 Equity and Performance Incentive Plan

Plan Document

	 	 	“Spread” means the excess of the Fair Market Value per share of the Common Stock on the date
when a Stock Appreciation Right is exercised, (or on the date when Option Rights are
surrendered in payment of the Option Price of other Option Rights) over the Option Price
provided for in the related Option Right, or where a SAR is granted independent of an Option
Right, over the exercise price determined by the Committee at the time of grant of the SAR.
	 
	 	 	“Stock Appreciation Right” or “SAR” means the right to receive in cash, stock, or any
combination thereof, the Spread of a share of Common Stock, which right is granted pursuant
to Section 7 or Section 11 hereof and subject to the terms and conditions contained therein.
	 
	 	 	“Stock Award” or “Award” means an Option Right, SAR, Restricted Stock, Restricted Stock
Unit, Performance Compensation Award or Stock Bonus Award granted pursuant to the terms of
the Plan.
	 
	 	 	“Stock Bonus” means a grant of a bonus payable in shares of Common Stock pursuant to Section
10 hereof.
	 
	 	 	“Subsidiary” means for purposes of any grant of Incentive Stock Options, any corporation in
which at the time the Company owns or controls, directly or indirectly, more than 50% of the
total combined voting power represented by all classes of stock issued by such corporation.
	 
	 	 	“Vesting Date” means the date established by the Committee on which a Participant has the
ability to acquire all or a portion of a grant of Option Rights, or SAR or the date upon
which the restrictions on a Restricted Stock grant shall lapse.
	 
	3.	 	Stock Subject to the Plan

	 	(a)	 	Subject to adjustment as provided in Section 15 of this Plan, the number of
shares of Common Stock that may be issued or transferred with respect to Awards granted
under the Plan shall not exceed in the aggregate 4,500,000 shares. Such shares may be
shares of original issuance or treasury shares or a combination of the foregoing. Upon
the payment of any Option Price by the transfer to the Company of Common Stock or upon
satisfaction of any withholding amount by means of transfer or relinquishment of Common
Stock, there shall be deemed to have been issued or transferred under this Plan only
the net number of shares of Common Stock actually issued or transferred by the Company.
	 
	 	(b)	 	No Participant shall be granted Option Rights or Stock Appreciation Rights for
more than 450,000 shares of Common Stock during any calendar year, subject to
adjustments as provided in Section 15 of this Plan.
	 
	 	(c)	 	The number of shares available in Section 3(a) above shall be adjusted to
account for shares relating to awards that expire, are forfeited or are transferred,
surrendered or relinquished upon the payment of any Option Price by the transfer to the
Company of shares of Common Stock or upon satisfaction of any withholding amount. Upon
payment in cash of the benefit provided by any award granted under this Plan, any
shares that were covered by that award shall again be available for issue or transfer
hereunder.
	 
	 	(d)	 	No more than 450,000 shares of Common Stock (subject to adjustments as
provided in Section 15 of this Plan) may be earned in respect of Performance
Compensation Awards granted pursuant to Section 9 of the Plan to any single
Participant for a single calendar year during a Performance Period, or in the event
such Performance Compensation Award is paid in cash, other securities, other Awards or
other property, no more than the

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Plan Document

	 	 	 	Fair Market Value of 450,000 shares of Common Stock (subject to adjustments as
provided in Section 15 of the Plan) on the last day of the Performance Period to
which such Award relates.

	4.	 	Administration of the Plan

	 	(a)	 	This Plan shall be administered by the Committee. To the extent required to
comply with the provisions of Rule 16b-3 (if the Board is not acting as the Committee
under the Plan) or necessary to obtain the exception for performance-based compensation
under Section 162(m) of the Code, as applicable, it is intended that each member of the
Committee shall, at the time he or she takes any action with respect to an Award under
the Plan, be an Eligible Director. However, the fact that a Committee member shall
fail to qualify as an Eligible Director shall not invalidate any Award granted by the
Committee that is otherwise validly granted under the Plan. The majority of the
members of the Committee shall constitute a quorum. The acts of a majority of the
members present at any meeting at which a quorum is present or acts approved in writing
by a majority of the Committee shall be deemed the acts of the Committee.
	 
	 	(b)	 	Subject to the provisions of the Plan and applicable law, the Committee shall
have the sole and plenary authority, in addition to other express powers and
authorizations conferred on the Committee by the Plan, to: (i) designate Participants;
(ii) determine the type or types of Awards to be granted to a Participant; (iii)
determine the number of shares of Common Stock to be covered by, or with respect to
which payments, rights, or other matters are to be calculated in connection with
Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to
what extent, and under what circumstances Awards may be settled or exercised in cash,
shares of Common Stock, other securities, other Awards or other property, or canceled,
forfeited, or suspended and the method or methods by which Awards may be settled,
exercised, canceled, forfeited, or suspended; (vi) determine whether, to what extent,
and under what circumstances the delivery of cash, Common Stock, other securities,
other Awards or other property and other amounts payable with respect to an Award shall
be deferred either automatically or at the election of the Participant or of the
Committee; (vii) interpret, administer, reconcile any inconsistency in, correct any
defect in and/or supply any omission in the Plan and any instrument or agreement
relating to, or Award granted under, the Plan; (viii) establish, amend, suspend, or
waive any rules and regulations and appoint such agents as the Committee shall deem
appropriate for the proper administration of the Plan; (ix) accelerate the vesting or
exercisability of, payment for or lapse of restrictions on Awards, provided that the
Committee may only exercise this authority in the event of a change of control or the
death, disability or Retirement of a Participant; and (x) make any other determination
and take any other action that the Committee deems necessary or desirable for the
administration of the Plan.
	 
	 	(c)	 	The Committee may delegate to one or more officers of the Company or any
Affiliate the authority to act on behalf of the Committee with respect to any matter,
right, obligation, or election that is the responsibility of or that is allocated to
the Committee herein, and that may be so delegated as a matter of law, except for
grants of Awards to persons (i) subject to Section 16 of the Exchange Act or (ii) who
are, or who are reasonably expected to be Covered Employees.
	 
	 	(d)	 	Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations, and other decisions under or with respect to the Plan
or any Award or any documents evidencing Awards granted pursuant to the Plan shall be
within the sole discretion of the Committee, may be made at any time and shall be
final, conclusive and

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	 	 	 	binding upon all persons or entities, including, without limitation, the Company,
any Affiliate, any Participant, any holder or beneficiary of any Award, and any
stockholder of the Company.
	 
	 	(e)	 	No member of the Committee shall be liable for any action, omission, or
determination relating to the Plan or any Award hereunder, and the Company shall
indemnify and hold harmless each member of the Committee and each other director or
employee of the Company to whom any duty or power relating to the administration or
interpretation of the Plan has been delegated (an “Indemnifiable Person”) against any
cost or expense (including counsel fees) or liability (including any sum paid in
settlement of a claim with the approval of the Committee) arising out of any action,
omission or determination relating to the Plan or any Award hereunder, provided, that
the Company shall have the right, at its own expense, to assume and defend any such
action, suit or proceeding and once the Company gives notice of its intent to assume
the defense, the Company shall have sole control over such defense with counsel of the
Company’s choice. The foregoing right of indemnification shall not be available to the
extent that a final judgment or other final adjudication (in either case not subject to
further appeal) binding upon such Indemnifiable Person determines that the acts or
omissions of such Indemnifiable Person giving rise to the indemnification claim
resulted from such Indemnifiable Person’s bad faith, fraud or willful criminal act or
omission or that such right of indemnification is otherwise prohibited by law or by the
Company’s Certificate of Incorporation or Bylaws. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to which
such Indemnifiable Person may be entitled under the Company’s Certificate of
Incorporation or Bylaws, as a matter of law, or otherwise, or any other power that the
Company may have to indemnify such Indemnifiable Person or hold them harmless.

	5.	 	Eligibility

	 	(a)	 	The persons who shall be eligible to receive Awards pursuant to the Plan shall
be such Eligible Persons as the Committee shall select in its discretion.
	 
	 	(b)	 	In order to facilitate the making of any grant or combination of grants under
this Plan, the Committee may provide for such special terms for Awards to Participants
who are foreign nationals or who are employed by the Company or any Affiliate outside
of the United States of America as the Committee may consider necessary or appropriate
to accommodate differences in local law, tax policy or custom. Moreover, the Committee
may approve such supplements to or amendments, restatements or alternative versions of
this Plan as it may consider necessary or appropriate for such purposes, without
thereby affecting the terms of this Plan as in effect for any other purpose, and the
Secretary or other appropriate officer of the Company may certify any such document as
having been approved and adopted in the same manner as this Plan. No such special
terms, supplements, amendments or restatements, however, shall include any provisions
that are inconsistent with the terms of this Plan as then in effect unless this Plan
could have been amended to eliminate such inconsistency without further approval by the
shareholders of the Company.

	6.	 	Option Rights
	 
	 	 	The Committee may, from time to time and upon such terms and conditions as it may determine,
authorize the granting to Participants of options to purchase shares of Common Stock. Each
such grant may utilize any or all of the authorizations, and shall be subject to all of the
requirements, contained in the following provisions:

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	 	(a)	 	Each Option Right granted under the Plan shall be clearly identified in the
applicable Evidence of Award as either an Incentive Stock Option or as a Non-Qualified
Stock Option. In the absence of such identification, an Option Right shall be deemed
to be a Non-Qualified Stock Option.
	 
	 	(b)	 	Each grant of Option Rights shall be evidenced by an Evidence of Award, which
shall contain such terms and provisions, consistent with this Plan, as the Committee
may approve. Certificates for shares of Common Stock purchased upon the exercise of an
Option Right shall be issued in the name of the Participant or his or her Beneficiary
(or Permitted Transferee), as the case may be, and delivered to the Participant or his
or her Beneficiary (or Permitted Transferee), as the case may be, as soon as
practicable following the effective date on which the Option Right is exercised.
	 
	 	(c)	 	Each grant shall specify the number of shares of Common Stock to which it
pertains, subject to the limitations set forth in Section 3 of this Plan.
	 
	 	(d)	 	Each grant shall specify an Option Price per share, which shall be at least be
equal to the Fair Market Value per share on the Date of Grant, except as permitted in
connection with the issuance of Option Rights in a transaction to which Section 424(a)
of the Code applies.
	 
	 	(e)	 	Option Rights shall vest and become exercisable in such manner and on such date
or dates determined by the Committee and shall expire after such period, not to exceed
ten years, as may be determined by the Committee (the “Option Period”); provided,
however, that the Option Period shall not exceed five years from the Date of Grant in
the case of an Incentive Stock Option granted to a Participant who on the Date of Grant
owns stock representing more than 10% of the voting power of all classes of stock of
the Company or any Affiliate; provided, further, that notwithstanding any Vesting Dates
set by the Committee, the Committee may, in its sole discretion, accelerate the
exercisability of any Option Right, which acceleration shall not affect the terms and
conditions of such Option Right other than with respect to exercisability, provided
that the Committee may only exercise this authority in the event of a change of control
or the death, disability or Retirement of a Participant. Unless a longer vesting
period is provided by the Committee in the Evidence of Award (i) an Option Right shall
vest and become exercisable to the extent of one-third of the number of shares covered
thereby one year after the Date of Grant and to the extent of an additional one-third
of such shares after each of the next two successive years thereafter; (ii) the
unvested portion of an Option Right shall expire upon termination of employment or
service of the Participant granted the Option Right, and the vested portion of such
Option Right shall remain exercisable for (A) one year following termination of
employment or service by reason of such Participant’s death, disability (as determined
by the Committee in its sole discretion) or Retirement, but not later than the
expiration of the Option Period; or (B) 90 days following termination of employment or
service for any reason other than such Participant’s death, disability or Retirement,
and other than such Participant’s termination of employment or service for Cause, but
not later than the expiration of the Option Period; and (iii) both the unvested and the
vested portion of an Option Right shall expire upon the termination of the
Participant’s employment or service by the Company for Cause. Such Option Rights shall
become fully vested and exercisable immediately prior to the Change in Control.
	 
	 	(f)	 	Each Option Right shall be exercisable in whole or in part; provided, however,
that no partial exercise of an Option Right shall be for an aggregate exercise price of
less than $1,000, unless such partial exercise represents the entire unexercised
portion of the Option Right or the entire portion of the Option Right that is then
exercisable. The partial

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	 	 	 	exercise of an Option Right shall not cause the expiration, termination or
cancellation of the remaining portion thereof. Upon the partial exercise of an
Option Right, the Evidence of Award evidencing such Option Right and any related
SARs shall be returned to the Participant exercising such Option Right together with
the delivery of the certificates described in Section 6(b) hereof.
	 
	 	(g)	 	An Option Right shall be exercised by delivering written or electronic notice
to the Company’s principal office, to the attention of its Secretary, and shall be
effective no later than five business days from the date of delivery of the written
notice. Such notice shall be accompanied by the Evidence of Award or agreements
evidencing the Option Right and any related SARs, shall specify the number of shares of
Common Stock with respect to which the Option Right is being exercised and the
effective date of the proposed exercise and shall be signed by the Participant. The
Participant may withdraw such notice at any time prior to the close of business on the
business day immediately preceding the effective date of the proposed exercise, in
which case such Evidence of Award or agreements shall be returned to him or her.
	 
	 	(h)	 	Payment for shares of Common Stock purchased upon the exercise of an Option
Right shall be made on the effective date of such exercise either:

	 	(i)	 	in cash, by certified check, bank cashier’s check or wire
transfer;
	 
	 	(ii)	 	unless provided otherwise in the applicable Evidence of Award,
in shares of Common Stock owned by the Participant that are not subject to any
pledge or other security interest and that are Mature Shares and that are
valued at their Fair Market Value on the effective date of such exercise, or
partly in shares of Common Stock with the balance in cash, by certified check,
bank cashier’s check or wire transfer;
	 
	 	(iii)	 	unless provided otherwise in the applicable Evidence of Award,
pursuant to procedures adopted by the Committee whereby the Participant, by a
properly written notice, shall direct (1) an immediate market sale or margin
loan respecting all or a part of the shares of Common Stock to which the
Participant is entitled upon exercise pursuant to an extension of credit by the
Company to the Participant of the exercise price, (2) the delivery of the
shares of Common Stock from the Company directly to the brokerage firm, and (3)
the delivery of the exercise price from the sale or margin loan proceeds from
the brokerage firm directly to the Company;
	 
	 	(iv)	 	at the discretion of the Committee and to the extent permitted
by law, by such other provision as the Committee may from time to time
prescribe; or
	 
	 	(v)	 	any combination of the foregoing.

	 	(i)	 	Each grant shall specify whether the Option Price shall be payable (i) in cash
or by check acceptable to the Company; (ii) by the actual or constructive transfer to
the Company of non-forfeitable, unrestricted shares of Common Stock owned by the
Optionee having a value at the time of exercise equal to the total Option Price; or
(iii) by a combination of such methods of payment.
	 
	 	(j)	 	Successive grants may be made to the same Participant whether or not any Option
Rights previously granted to such Participant remain unexercised.

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	 	(k)	 	The exercise of an Option Right shall result in the cancellation on a
share-for—share basis of any related Stock Appreciation Right authorized under Section
7 of the Plan.
	 
	 	(l)	 	To the extent that the aggregate Fair Market Value (determined as of the time
the Option Right is granted) of any stock with respect to which Incentive Stock Options
granted under this Plan and all other plans of the Company (and any plans of any
“subsidiary corporation” or “parent corporation” of the Company within the meaning of
Section 424 of the Code) are first exercisable by any employee during any calendar year
shall exceed the maximum limit, if any, imposed from time to time under Section 422 of
the Code, such Option Rights in excess of such limit shall be treated as Non-Qualified
Stock Options. In such an event, the determination of which Option Rights shall remain
Incentive Stock Options and which shall be treated as Non-Qualified Stock Options shall
be based on the order in which such Option Rights were granted. All other terms and
provisions of such Option Rights that are deemed to be Non-Qualified Stock Options
shall remain unchanged.
	 
	 	(m)	 	No Incentive Stock Option may be granted to an individual if, at the time of
the proposed grant, such individual owns stock possessing more than ten percent (10%)
of the total combined voting power of all classes of stock of the Company or any of its
“Subsidiary Corporations” (within the meaning of Section 424 of the Code), unless (i)
the exercise price of such Incentive Stock Option is at least one hundred ten percent
(110%) of the Fair Market Value of a share of Common Stock at the time such Incentive
Stock Option is granted and (ii) such Incentive Stock Option is not exercisable after
the expiration of five years from the date such Incentive Stock Option is granted.
	 
	 	(n)	 	Each Participant awarded an Incentive Stock Option under the Plan shall notify
the Company in writing immediately after the date he or she makes a disqualifying
disposition of any Common Stock acquired pursuant to the exercise of such Incentive
Stock Option. A “disqualifying disposition” is any disposition (including, without
limitation, any sale) of such Common Stock before the later of (A) two years after the
date of grant of the Incentive Stock Option or (B) one year after the date of exercise
of the Incentive Stock Option. The Company may, if determined by the Committee and in
accordance with procedures established by the Committee, retain possession of any
Common Stock acquired pursuant to the exercise of an Incentive Stock Option as agent
for the applicable Participant until the end of the period described in the preceding
sentence.

	7.	 	Stock Appreciation Rights (SARs)
	 
	 	 	The Committee may also authorize the granting of Stock Appreciation Rights in respect of
Option Rights granted hereunder at any time prior to the exercise or termination of such
related Option Rights; provided, however, that a Stock Appreciation Right awarded in
relation to an Incentive Stock Option must be granted concurrently with such Incentive Stock
Option. The Committee may also award SARs to a Participant independent of any Option
Rights. A Stock Appreciation Right shall be a right, exercisable by surrender of the related
Option Right (if applicable), to receive from the Company an amount determined by the
Committee, which shall be expressed as a percentage of the Spread (not exceeding 100%) at
the time of exercise. The Committee may grant Stock Appreciation Rights pursuant to the
Plan, which Stock Appreciation Rights shall be evidenced by Evidence of Awards in such form
as the Committee shall from time to time approve. Each such grant may utilize any or all of
the authorizations, and shall be subject to all of the requirements, contained in the
following provisions:

	 	(a)	 	Each grant of SARs shall be evidenced by an Evidence of Award that shall
describe such Stock Appreciation Rights, identify the related Option Rights, if
applicable, state that such

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	 	 	 	Stock Appreciation Rights are subject to all the terms and conditions of this Plan,
and contain such other terms and provisions, consistent with this Plan, as the
Committee may approve.
	 
	 	(b)	 	The exercise price of any SAR granted under the Plan shall be determined by the
Committee at the time of the grant of such SAR.
	 
	 	(c)	 	Any grant may specify that the amount payable on exercise of a SAR may be paid
by the Company in cash, in shares of Common Stock or in any combination thereof and may
either grant to the Participant or retain in the Committee the right to elect among
those alternatives.
	 
	 	(d)	 	Any grant may specify that the amount payable on exercise of a SAR may not
exceed a maximum specified by the Committee at the Date of Grant.
	 
	 	(e)	 	Any grant may specify waiting periods before exercise and permissible exercise
dates or periods and if applicable, shall provide that no SAR may be exercised except
at a time when the related Option Right is also exercisable and at a time when the
Spread is positive.
	 
	 	(f)	 	A SAR granted in connection with an Option Right shall become exercisable and
shall expire according to the same vesting schedule and expiration provisions as the
corresponding Option Right. A SAR granted independent of an Option Right shall vest
and become exercisable and shall expire in such manner and on such date or dates
determined by the Committee and shall expire after such period, not to exceed ten
years, as may be determined by the Committee (the “SAR Period”); provided, however,
that notwithstanding any Vesting Dates set by the Committee, the Committee may, in its
sole discretion, accelerate the exercisability of any SAR, which acceleration shall not
affect the terms and conditions of such SAR other than with respect to exercisability,
provided that the Committee may only exercise this authority in the event of a change
of control or the death, disability or Retirement of a Participant. Unless a longer
vesting period is provided by the Committee in the Evidence of Award: (i) a SAR shall
vest and become exercisable to the extent of one-third of the number of shares covered
thereby one year after the Date of Grant and to the extent of an additional one-third
of such shares after each of the next two successive years thereafter (ii) the unvested
portion of a SAR shall expire upon termination of employment or service of the
Participant granted the SAR, and the vested portion of such SAR shall remain
exercisable for (A) one year following termination of employment or service by reason
of such Participant’s death, disability (as determined by the Committee in its sole
discretion) or Retirement, but not later than the expiration of the SAR Period
or (B) 90 days following termination of employment or service for any reason other than
such Participant’s death, disability or Retirement, and other than such Participant’s
termination of employment or service for Cause, but not later than the expiration of
the SAR Period; and (iii) both the unvested and the vested portion of a SAR shall
expire upon the termination of the Participant’s employment or service by the Company
for Cause.
	 
	 	(g)	 	Each SAR may be exercised in whole or in part; provided, however, that no
partial exercise of a SAR shall be for an aggregate amount different from the partial
exercise of the corresponding Option Right described in Section 6(f) hereof. The
partial exercise of a SAR shall not cause the expiration, termination or cancellation
of the remaining portion thereof. Upon the partial exercise of a SAR, the Evidence of
Award evidencing such SAR, marked with such notations as the Committee may deem
appropriate to evidence

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	 	 	 	such partial exercise, shall be returned to the Participant exercising such SAR,
together with the payment for the exercised SAR.
	 
	 	(h)	 	A SAR shall be exercised by delivering written or electronic notice to the
Company’s principal office, to the attention of its Secretary, and shall be effective
no later than five business days from the date of delivery of the written notice. Such
notice shall be accompanied by the Evidence of Award or agreements evidencing the SAR,
shall specify the number of shares of Common Stock with respect to which the SAR is
being exercised and the effective date of the proposed exercise, and shall be signed by
the Participant. The Participant may withdraw such notice at any time prior to the
close of business on the business day immediately preceding the effective date of the
proposed exercise, in which case the Evidence of Award evidencing the SAR shall be
returned to him or her. Notwithstanding the foregoing, if on the last day of the Option
Period (or in the case of a SAR independent of an option, the SAR Period), the Spread
is positive, the Participant has not exercised the SAR or the corresponding Option
Right (if applicable), and neither the SAR nor the corresponding Option Right (if
applicable) has expired, such SAR shall be deemed to have been exercised by the
Participant on such last day and the Company shall make the appropriate payment
therefor.
	 
	 	(i)	 	Any grant may specify that such SAR may be exercised only in the event of a
Change in Control or other similar transaction or event.
	 
	 	(j)	 	Upon the occurrence of a Change in Control, any SAR granted under the Plan and
outstanding at such time shall be fully vested and exercisable immediately prior to the
Change in Control and shall remain exercisable until its expiration, termination or
cancellation pursuant to the terms of the Plan.

	8.	 	Restricted Stock and Restricted Stock Units
	 
	 	 	The Committee may also authorize the grant to Participants of Restricted Stock or Restricted
Stock Units. Each grant of Restricted Stock or Restricted Stock Units shall be evidenced by
an Evidence of Award in such form and containing such terms and conditions and subject to
such agreements or understandings as the Committee shall from time to time approve. Each
such grant may utilize any or all of the authorizations, and shall be subject to all of the
requirements, contained in the following provisions:

	 	(a)	 	Upon the grant of Restricted Stock, the Committee shall cause a stock
certificate registered in the name of the Participant to be issued and, if the
Committee determines that the Restricted Stock shall be held by the Company or in
escrow rather than delivered to the Participant pending the release of applicable
restrictions, the Committee may require the Participant to also execute and deliver to
the Company (i) an escrow agreement satisfactory to the Committee, if applicable, and
(ii) the appropriate stock power (endorsed in blank) with respect to the Restricted
Stock covered by such agreement. If a Participant shall fail to execute an agreement
evidencing an award of Restricted Stock and, if applicable, an escrow agreement and
blank stock power within the amount of time specified by the Committee, the award of
Restricted Stock shall be null and void. Subject to the restrictions set forth in this
Section 8 and the applicable Evidence of Award, the Participant generally shall have
the rights and privileges of a stockholder as to such Restricted Stock, including
without limitation the right to vote such Restricted Stock. To the extent shares of
Restricted Stock are forfeited, any stock certificates issued to the Participant
evidencing such shares shall be returned to the Company, and all rights of the
Participant to such shares and as a stockholder with respect thereto shall terminate
without further obligation on the part of the Company.

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	 	(b)	 	Unless a longer Restricted Period is provided by the Committee in an applicable
Evidence of Award, for purposes of this Plan, the Restricted Period shall lapse to the
extent of one-third of the Restricted Stock and Restricted Stock Units covered thereby
one year after the Date of Grant and to the extent of an additional one-third of such
Restricted Stock and Restricted Stock Units after each of the next two successive years
thereafter. The unvested portion of Restricted Stock and Restricted Stock Units shall
terminate and be forfeited upon termination of employment or service of the Participant
granted the applicable Award.
	 
	 	(c)	 	Each such grant shall provide that the Restricted Stock covered by such grant
shall be, to the extent that the Restricted Period has not lapsed in accordance with
Section 8(b) hereof, subject, except (if the Committee shall so determine) in the event
of a Change in Control or other similar transaction or event, to a “substantial risk of
forfeiture” within the meaning of Section 83 of the Code. Upon the occurrence of a
Change in Control, the Restricted Period for the Restricted Stock and Restricted Stock
Units that have not theretofore vested, or been canceled or forfeited pursuant to any
provision hereof, shall automatically lapse.
	 
	 	(d)	 	Each such grant shall provide that during the Restricted Period, the
transferability of the Restricted Stock and Restricted Stock Units shall be prohibited
or restricted in the manner and to the extent prescribed by the Committee at the Date
of Grant (which restrictions may include, without limitation, rights of repurchase or
first refusal in the Company or provisions subjecting the Restricted Stock to a
continuing substantial risk of forfeiture in the hands of any transferee).
	 
	 	(e)	 	(i) Upon the expiration of the Restricted Period with respect to any shares of
Restricted Stock, the restrictions set forth in the applicable Evidence of Award shall
be of no further force or effect with respect to such shares, except as set forth in
the applicable Evidence of Award. If an escrow arrangement is used, upon such
expiration, the Company shall deliver to the Participant, or his or her Beneficiary,
without charge, the stock certificate evidencing the shares of Restricted Stock that
have not then been forfeited and with respect to which the Restricted Period has
expired (rounded down to the nearest full share). Dividends, if any, that may have
been withheld by the Committee and attributable to any particular share of Restricted
Stock shall be distributed to the Participant in cash or, at the sole discretion of the
Committee, in shares of Common Stock having a Fair Market Value equal to the amount of
such dividends, upon the release of restrictions on such share and, if such share is
forfeited, the Participant shall have no right to such dividends (except as otherwise
set forth by the Committee in the applicable Evidence of Award).
	 
	 	(ii)	 	Unless otherwise provided by the Committee in the Evidence of Award, upon the
expiration of the Restricted Period with respect to any outstanding Restricted Stock
Units, the Company shall deliver to the Participant, or his or her beneficiary,
without charge, one share of Common Stock for each such outstanding Restricted Stock
Unit; provided, however, that the Committee may, in its sole discretion, elect to
(1) pay cash or part cash and part Common Stock in lieu of delivering only shares of
Common Stock in respect of such Restricted Stock Units or (2) defer the delivery of
Common Stock (or cash or part Common Stock and part cash, as the case may be) beyond
the expiration of the Restricted Period. If a cash payment is made in lieu of
delivering shares of Common Stock, the amount of such payment shall be equal to the
Fair Market Value of the Common Stock as of the date on which the Restricted Period
lapsed with respect to such Restricted Stock Units, less an amount equal to any
federal, state, local and non-U.S. income and employment taxes required to be
withheld.

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	 	(f)	 	Each certificate representing Restricted Stock awarded under the Plan shall
bear a legend substantially in the form of the following in addition to any other
information the Company deems appropriate until the lapse of all restrictions with
respect to such Common Stock:

	 	 	 	The transferability of this certificate and the
shares of stock represented hereby are subject to the
restrictions, terms and conditions (including
forfeiture provisions and restrictions against
transfer) contained in the Waste Services, Inc. 2007
Equity and Performance Incentive Plan and Restricted
Stock Award Agreement entered into between the
registered owner of such shares and Waste Services,
Inc. A copy of such Plan and Award Agreement is on
file in the office of the Secretary of Waste
Services, Inc., 1122 International Boulevard, Suite
601, Burlington, ON L7L 6Z8.

	 	 	 	Such legend shall not be removed from the certificate evidencing such shares until
the Restricted Period for such Restricted Stock has lapsed pursuant to the terms
hereof.

	9.	 	Performance Compensation Awards

	 	(a)	 	The Committee shall have the authority, at the time of grant of any Award
described in Sections 6 through 8 of the Plan and pursuant to Section 10 of the Plan,
to designate such Award as a Performance Compensation Award intended to qualify as
“performance-based compensation” under Section 162(m) of the Code.
	 
	 	(b)	 	The Committee shall have sole discretion to select the length of the
Performance Period (provided that the vesting period shall not be less than one year),
the type(s) of Performance Compensation Awards to be issued, the Performance Objectives
that will be used to establish the Performance Goal(s), the kind(s) and/or level(s) of
the Performance Goals(s) that are to apply and the Performance Formula. Within the
first 90 days of a Performance Period (or, if longer or shorter, within the maximum
period allowed under Section 162(m) of the Code), the Committee shall, with regard to
the Performance Compensation Awards to be issued for such Performance Period, exercise
its discretion with respect to each of the matters enumerated in the immediately
preceding sentence and record the same in writing.
	 
	 	(c)	 	Any one or more of the Performance Objectives may be used on an absolute or
relative basis to measure the performance of the Company and/or one or more Affiliates
as a whole or any business unit(s) of the Company and/or one or more Affiliates or any
combination thereof, as the Committee may deem appropriate, or any of the Performance
Objectives may be compared to the performance of a selected group of comparison
companies, or a published or special index that the Committee, in its sole discretion,
deems appropriate, or as compared to various stock market indices. The Committee also
has the authority to provide for accelerated vesting of any Award based on the
achievement of Performance Goals pursuant to the Performance Objectives established by
the Committee. To the extent required under Section 162(m) of the Code, the Committee
shall, within the first 90 days of a Performance Period (or, if longer or shorter,
within the maximum period allowed under Section 162(m) of the Code), define in an
objective fashion the manner of calculating the Performance Objectives it selects to
use for such Performance Period and thereafter promptly communicate such Performance
Objectives to the Participant.

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	 	(d)	 	In the event that applicable tax and/or securities laws change to permit
Committee discretion to alter the governing Performance Objectives without obtaining
stockholder approval of such alterations, the Committee shall have sole discretion to
make such alterations without obtaining stockholder approval. The Committee is
authorized at any time during the first 90 days of a Performance Period (or, if longer
or shorter, within the maximum period allowed under Section 162(m) of the Code), or at
any time thereafter to the extent the exercise of such authority at such time would not
cause the Performance Compensation Awards granted to any Participant for such
Performance Period to fail to qualify as “performance-based compensation” under Section
162(m) of the Code, in its sole discretion, to adjust or modify the calculation of a
Performance Goal for such Performance Period, based on and in order to appropriately
reflect the following events: (i) asset write-downs; (ii) litigation or claim
judgments or settlements; (iii) the effect of changes in tax laws, accounting
principles, or other laws or regulatory rules affecting reported results; (iv) any
reorganization and restructuring programs; (v) extraordinary nonrecurring items as
described in Accounting Principles Committee Opinion No. 30 (or any successor
pronouncement thereto) and/or in management’s discussion and analysis of financial
condition and results of operations appearing in the Company’s annual report to
stockholders for the applicable year; (vi) acquisitions or divestitures; (vii) any
other specific unusual or nonrecurring events, or objectively determinable category
thereof; (viii) foreign exchange gains and losses; and (ix) a change in the Company’s
fiscal year.
	 
	 	(e)	 	Unless otherwise provided in the applicable Evidence of Award, a Participant
must be employed by the Company on the last day of a Performance Period to be eligible
for payment in respect of a Performance Compensation Award for such Performance Period.
	 
	 	(f)	 	A Participant shall be eligible to receive payment in respect of a Performance
Compensation Award only to the extent that: (A) the Performance Goals for such period
are achieved; and (B) all or some of the portion of such Participant’s Performance
Compensation Award has been earned for the Performance Period based on the application
of the Performance Formula to such achieved Performance Goals.
	 
	 	(g)	 	Following the completion of a Performance Period, the Committee shall review
and certify in writing whether, and to what extent, the Performance Goals for the
Performance Period have been achieved and, if so, calculate and certify in writing that
amount of the Performance Compensation Awards earned for the period based upon the
Performance Formula. The Committee shall then determine the amount of each
Participant’s Performance Compensation Award actually payable for the Performance
Period and, in so doing, the Committee may reduce or eliminate the amount of the
Performance Compensation Award earned under the Performance Formula in the Performance
Period if, in its sole judgment, such reduction or elimination is appropriate. The
Committee shall not have the discretion, except as is otherwise provided in the Plan,
to (A) grant or provide payment in respect of Performance Compensation Awards for a
Performance Period if the Performance Goals for such Performance Period have not been
attained; or (B) increase a Performance Compensation Award above the applicable
limitations set forth in Section 3 of the Plan.

	10.	 	Other Awards
	 
	 	 	Stock Bonuses

	 	 	 	The Committee may issue unrestricted Common Stock, or other Awards denominated in
Common Stock, under the Plan to Eligible Persons, either alone or in tandem with
other awards, in such amounts as the Committee shall from time to time in its sole
discretion

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	 	 	 	determine. Each Stock Bonus Award granted under the Plan shall be evidenced by
Evidence of an Award. Each Stock Bonus Award so granted shall be subject to such
conditions not inconsistent with the Plan as may be reflected in the applicable
Evidence of Award.

	11.	 	Awards to Non-Employee Directors

	 	(a)	 	The Committee (which for the purposes of this Section shall consist of
independent directors) may, from time to time and upon such terms and conditions as it
may determine, authorize the grant to Non-Employee Directors of Stock Awards upon terms
and conditions consistent with Sections 6, 7, 8, 9 and 10 of the Plan, except that the
unvested portion of an Option Right or Stock Appreciation Rights shall automatically be
forfeited upon termination of service on the Board and the vested portion of such
Option Rights and Stock Appreciation Rights shall remain exercisable for (A) one year
after such termination other than by reason of death or disability (as determined by
the Committee in its sole discretion), or on their stated expiration date, whichever
occurs first; provided, however, that any Option Rights or Stock Appreciation Rights
may provide that a Non-Employee Director will be entitled to exercise any such Option
Rights immediately in full at any time after any such termination until their stated
expiration date if the sum of his or her period of service on the Board and his or her
specified age equals 70 (“Rule of 70”); or (B) three years after the Non-Employee
Director’s death or disability, but in no event after the expiration date of the term
of such Option Rights or Stock Appreciation Rights. The Committee, in its discretion,
may amend the exercise period specified herein.
	 
	 	(b)	 	If a Non-Employee Director subsequently becomes an employee of the Company or
an Affiliate while remaining a member of the Board, any Awards held under the Plan by
such individual at the time of such commencement of employment shall not be affected
thereby.

	12.	 	Fractional Shares
	 
	 	 	The Company shall not be required to issue any fractional shares of Common Stock pursuant to
this Plan. The Committee may provide for the elimination of fractions or for the settlement
of fractions in cash.
	 
	13.	 	Transferability

	 	(a)	 	Each Award shall be exercisable only by a Participant during the Participant’s
lifetime, or, if permissible under applicable law, by the Participant’s legal guardian
or representative. No Award may be assigned, alienated, pledged, attached, sold or
otherwise transferred or encumbered by a Participant other than by will or by the laws
of descent and distribution and any such purported assignment, alienation, pledge,
attachment, sale, transfer or encumbrance shall be void and unenforceable against the
Company or an Affiliate; provided that the designation of a Beneficiary shall not
constitute an assignment, alienation, pledge, attachment, sale, transfer or
encumbrance.
	 
	 	(b)	 	Notwithstanding the foregoing, the Committee may, in its sole discretion,
permit Awards (other than Incentive Stock Options) to be transferred by a Participant,
without consideration, subject to such rules as the Committee may adopt consistent with
any applicable Evidence of Award to preserve the purposes of the Plan, to: (A) an
Immediate Family Member; (B) a trust solely for the benefit of the Participant and his
or her Immediate Family Members; or (C) a partnership or limited liability company
whose only partners or stockholders are the Participant and his or her Immediate Family
Members; or

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	 	 	 	(D) any other transferee as may be approved either (I) by the Committee in its sole
discretion, or (II) as provided in the applicable Evidence of Award (each transferee
described in clauses (A), (B) (C) and (D) above is hereinafter referred to as a
“Permitted Transferee”); provided, that the Participant gives the
Committee advance written notice describing the terms and conditions of the proposed
transfer and the Committee notifies the Participant in writing that such a transfer
would comply with the requirements of the Plan. The terms of any award transferred
in accordance with the immediately preceding sentence shall apply to the Permitted
Transferee and any reference in the Plan, or in any applicable Evidence of Award, to
a Participant shall be deemed to refer to the Permitted Transferee, except that (A)
Permitted Transferees shall not be entitled to transfer any Award, other than by
will or the laws of descent and distribution; (B) Permitted Transferees shall not be
entitled to exercise any transferred Option Right unless there shall be in effect a
registration statement on an appropriate form covering the shares of Common Stock to
be acquired pursuant to the exercise of such Option Right if the Committee
determines, consistent with any applicable Evidence of Award, that such a
registration statement is necessary or appropriate; (C) the Committee or the Company
shall not be required to provide any notice to a Permitted Transferee, whether or
not such notice is or would otherwise have been required to be given to the
Participant under the Plan or otherwise; and (D) the consequences of the termination
of the Participant’s employment by, or services to, the Company or an Affiliate
under the terms of the Plan and the applicable Evidence of Award shall continue to
be applied with respect to the Participant, including, without limitation, that an
Option Right shall be exercisable by the Permitted Transferee only to the extent,
and for the periods, specified in the Plan and the applicable Evidence of Award.

	14.	 	Right of Recapture

	 	 	 	If at any time within one year after the date on which a Participant exercises an
Option Right, or Stock Appreciation Right, or on which the Restricted Period for
shares of Restricted Stock or a Restricted Stock Unit lapses, (each of which events
shall be a “realization event”), if the Committee determines in its discretion that
the Company or any Affiliate has been materially harmed by the Participant as a
result of any activity of the Participant determined by the Committee to be in
competition with any activity of the Company or any Affiliate, (including, but not
limited to, accepting employment with or serving as a consultant, advisor or in any
other capacity to an entity that is in competition with or acting against the
interests of the Company or any Affiliate), then any gain realized by the
Participant from the realization event shall be paid by the Participant to the
Company upon notice from the Company. Such gain shall be determined as of the date
of the realization event, without regard to any subsequent change in the Fair Market
Value of a share of Common Stock. The Company shall have the right to offset such
gain against any amounts otherwise owed to the Participant by the Company (whether
as wages, vacation pay, or pursuant to any benefit plan or other compensatory
arrangement).

	15.	 	Adjustment Upon Changes in Capital Structure and Other Events

	 	(a)	 	In the event of (A) any dividend or other distribution (whether in the form of
cash, shares of Common Stock, other securities or other property, including without
limitation an extraordinary cash dividend), recapitalization, stock split, reverse
stock split, reorganization, merger, consolidation, split-up, split-off, combination,
repurchase or exchange of shares of Common Stock or other securities of the Company,
issuance of warrants or other rights to acquire shares of Common Stock or other
securities of the Company, or other similar corporate transaction or event (including,
without limitation, a

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Plan Document

	 	 	 	Change in Control) that affects the shares of Common Stock, or (B) unusual or
nonrecurring events (including, without limitation, a Change in Control) affecting
the Company, any Affiliate, or the financial statements of the Company or any
Affiliate, or changes in applicable rules, rulings, regulations or other
requirements of any governmental body or securities exchange or inter-dealer
quotation system, accounting principles or law, such that in either case an
adjustment is determined by the Committee in its sole discretion to be necessary or
appropriate, then the Committee shall make any such adjustments in such manner as it
may deem equitable, including without limitation any or all of the following:

	 	(i)	 	adjusting any or all of (A) the number of shares of Common
Stock or other securities of the Company (or number and kind of other
securities or other property) that may be delivered in respect of Awards or
with respect to which Awards may be granted under the Plan (including, without
limitation, adjusting any or all of the limitations under Section 3 of the
Plan) and (B) the terms of any outstanding Award, including, without
limitation, (1) the number of shares of Common Stock or other securities of the
Company (or number and kind of other securities or other property) subject to
outstanding Awards or to which outstanding Awards relate, (2) the Option Price
with respect to any Award or (3) any applicable performance measures
(including, without limitation, Performance Objectives and Performance Goals);
	 
	 	(ii)	 	providing for a substitution or assumption of Awards,
accelerating the exercisability of, lapse of restrictions on, or termination
of, Awards or providing for a period of time for exercise prior to the
occurrence of such event; and
	 
	 	(iii)	 	cancelling any one or more outstanding Awards and causing to
be paid to the holders thereof, in cash, shares of Common Stock, other
securities or other property, or any combination thereof, the value of such
Awards, if any, as determined by the Committee (which if applicable may be
based upon the price per share of Common Stock received or to be received by
other stockholders of the Company in such event), including without limitation,
in the case of an outstanding Option Right or SAR, a cash payment in an amount
equal to the excess, if any, of the Fair Market Value (as of a date specified
by the Committee) of the shares of Common Stock subject to such Option Right or
SAR over the aggregate Option Price of such Option Right or exercise price of
the SAR, respectively (it being understood that, in such event, any Option
Right or SAR having a per share Option Price or exercise price equal to, or in
excess of, the Fair Market Value of a share of Common Stock subject thereto may
be canceled and terminated without any payment or consideration therefor);

	 	 	 	provided, however, that in the case of any “equity restructuring”
(within the meaning of the Financial Accounting Standards Board Statement of
Financial Accounting Standards No. 123 (revised 2004)), the Committee shall make an
equitable or proportionate adjustment to outstanding Awards to reflect such equity
restructuring. Any adjustment in Incentive Stock Options under this Section 15
(other than any cancellation of Incentive Stock Options) shall be made only to the
extent not constituting a “modification” within the meaning of Section 424(h)(3) of
the Code, and any adjustments under this Section 15 shall be made in a manner that
does not adversely affect the exemption provided pursuant to Rule 16b-3. The
Company shall give each Participant notice of an adjustment hereunder and, upon
notice, such adjustment shall be conclusive and binding for all purposes.

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	 	(b)	 	Except as expressly provided in the Plan, no Participant shall have any rights
by reason of any subdivision or consolidation of shares of stock of any class, the
payment of any dividend, any increase or decrease in the number of shares of stock of
any class or any dissolution, liquidation, merger or consolidation of the Company or
any other corporation. Except as expressly provided in the Plan, no issuance by the
Company of shares of stock of any class, or securities convertible into shares of stock
of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number of shares of Common Stock subject to a Stock Award or the Option
Price of any Option Right or the exercise price of any SAR.

	16.	 	Rights as a Stockholder
	 
	 	 	No person shall have any rights as a stockholder with respect to any shares of Common Stock
covered by or relating to any Award granted pursuant to this Plan until the date that the
Participant becomes the registered owner of such shares. Except as otherwise expressly
provided in Section 15 hereof, no adjustment to any Stock Award shall be made for dividends
or other rights for which the record date occurs prior to the date such stock certificate is
issued.
	 
	17.	 	No Special Employment Rights; No Right to Stock Award

	 	(a)	 	No employee of the Company or an Affiliate, or other person, shall have any
claim or right to be granted an Award under the Plan or, having been selected for the
grant of an Award, to be selected for a grant of any other Award. There is no
obligation for uniformity of treatment of Participants or holders or beneficiaries of
Awards. The terms and conditions of Awards and the Committee’s determinations and
interpretations with respect thereto need not be the same with respect to each
Participant and may be made selectively among Participants, whether or not such
Participants are similarly situated. Neither the Plan nor any action taken hereunder
shall be construed as giving any Participant any right to be retained in the employ or
service of the Company or an Affiliate, nor shall it be construed as giving any
Participant any rights to continued service on the Board. The Company or any of its
Affiliates may at any time dismiss a Participant from employment or discontinue any
consulting relationship, free from any liability or any claim under the Plan, unless
otherwise expressly provided in the Plan or any Evidence of Award. By accepting an
Award under the Plan, a Participant shall thereby be deemed to have waived any claim to
continued exercise or vesting of an Award or to damages or severance entitlement
related to non-continuation of the Award beyond the period provided under the Plan or
any Evidence of Award, notwithstanding any provision to the contrary in any written
employment contract or other agreement between the Company and its Affiliates and the
Participant, whether any such agreement is executed before, on or after the date of
grant of an Award.
	 
	 	(b)	 	Unless determined otherwise by the Committee at any point following such event:
(i) neither a temporary absence from employment or service due to illness, vacation or
leave of absence nor a transfer from employment or service with the Company to
employment or service with an Affiliate (or vice-versa) shall be considered a
termination of employment or service with the Company or an Affiliate; and (ii) if a
Participant’s employment with the Company and its Affiliates terminates, but such
Participant continues to provide services to the Company and its Affiliates in a
non-employee capacity (or vice-versa), such change in status shall not be considered a
termination of employment with the Company or an Affiliate. Whether an authorized leave
of absence, or absence in military or government service, shall constitute termination
of employment shall be determined by the Committee in its absolute discretion, subject
to applicable law.

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	18.	 	Securities Matters

	 	(a)	 	The Company shall be under no obligation to effect the registration pursuant to
the Securities Act of any interests in the Plan or any shares of Common Stock to be
issued hereunder or to effect similar compliance under any state laws. Notwithstanding
anything herein to the contrary, the Company shall not be obligated to cause to be
issued or delivered any certificates evidencing shares of Common Stock pursuant to the
Plan unless and until the Company is advised by its counsel that the issuance and
delivery of such certificates is in compliance with all applicable laws, regulations of
governmental authority and the requirements of any securities exchange on which shares
of Common Stock are traded. The Committee may require, as a condition of the issuance
and delivery of certificates evidencing shares of Common Stock pursuant to the terms
hereof, and without limiting the generality of Section 8 of the Plan, that the
recipient of such shares make such covenants, agreements and representations, and that
such certificates bear such legends, as the Committee, in its sole discretion, deems
necessary or desirable.
	 
	 	(b)	 	The exercise of any Option Right granted hereunder shall be effective only at
such time as counsel to the Company shall have determined that the issuance and
delivery of shares of Common Stock pursuant to such exercise is in compliance with all
applicable laws, regulations of governmental authority and the requirements of any
securities exchange on which shares of Common Stock are traded. The Committee may, in
its sole discretion, defer the effectiveness of any exercise of an Option Right granted
hereunder in order to allow the issuance of shares of Common Stock pursuant thereto to
be made pursuant to registration or an exemption from registration or other methods for
compliance available under federal or state securities laws. The Committee shall
inform the Participant in writing of its decision to defer the effectiveness of the
exercise of an Option Right granted hereunder. During the period that the
effectiveness of the exercise of an Option Right has been deferred, the Participant
may, by written notice, withdraw such exercise and obtain a refund of any amount paid
with respect thereto.
	 
	 	(c)	 	The Committee may cancel an Award or any portion thereof if it determines, in
its sole discretion, that legal or contractual restrictions and/or blockage and/or
other market considerations would make the Company’s acquisition of shares of Common
Stock from the public markets, the Company’s issuance of Common Stock to the
Participant, the Participant’s acquisition of Common Stock from the Company and/or the
Participant’s sale of Common Stock to the public markets, illegal, impracticable or
inadvisable. If the Committee determines to cancel all or any portion of an Award in
accordance with the foregoing, the Company shall pay to the Participant an amount equal
to the excess of (A) the aggregate Fair Market Value of the shares of Common Stock
subject to such Award or portion thereof canceled (determined as of the applicable
exercise date, or the date that the shares would have been vested or delivered, as
applicable), over (B) the aggregate exercise price or Option Price (in the case of a
SAR or Option Right, respectively) or any amount payable as a condition of delivery of
shares of Common Stock (in the case of any other Award). Such amount shall be
delivered to the Participant as soon as practicable following the cancellation of such
Award or portion thereof.

	19.	 	Witholding Taxes

	 	(a)	 	A Participant shall be required to pay to the Company or any Affiliate, and the
Company or any Affiliate shall have the right and is hereby authorized to withhold,
from any cash, shares of Common Stock, other securities or other property deliverable
under any Award or from any compensation or other amounts owing to a Participant, the
amount (in cash,

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2007 Equity and Performance Incentive Plan

Plan Document

	 	 	 	Common Stock, other securities or other property) of any required withholding taxes
in respect of an Award, its exercise, or any payment or transfer under an Award or
under the Plan and to take such other action as may be necessary in the opinion of
the Committee or the Company to satisfy all obligations for the payment of such
withholding and taxes.
	 
	 	(b)	 	Without limiting the generality of clause (a) above, the Committee may, in its
sole discretion, permit a Participant to satisfy, in whole or in part, the foregoing
withholding liability by (A) the delivery of shares of Common Stock (which are not
subject to any pledge or other security interest and are Mature Shares) owned by the
Participant having a Fair Market Value equal to such withholding liability, or (B)
having the Company withhold from the number of shares of Common Stock otherwise
issuable or deliverable pursuant to the exercise or settlement of the Award a number of
shares with a Fair Market Value equal to such withholding liability (but no more than
the minimum required statutory withholding liability).

	20.	 	Amendment or Termination of the Plan

	 	(a)	 	The Board may amend, alter, suspend, discontinue, or terminate the Plan or any
portion thereof at any time; provided, that (i) no amendment to Section 9 (c), the
definition of Performance Objectives or Section 20(b) (to the extent required by the
provison in such Section 20(b)) shall be made without stockholder approval and (ii) no
such amendment, alteration, suspension, discontinuation or termination shall be made
without stockholder approval if such approval is necessary to comply with any tax or
regulatory requirement applicable to the Plan (including, without limitation, as
necessary to comply with any rules or requirements of any securities exchange or
inter-dealer quotation system on which the shares of Common Stock may be listed or
quoted or to prevent the Company from being denied a tax deduction under Section 162(m)
of the Code); provided, further, that any such amendment, alteration, suspension,
discontinuance or termination that would materially and adversely affect the rights of
any Participant or any holder or beneficiary of any Award theretofore granted shall not
to that extent be effective without the consent of the affected Participant, holder or
Beneficiary.
	 
	 	(b)	 	The Committee may, to the extent consistent with the terms of any applicable
Evidence of Award, waive any conditions or rights under, amend any terms of, or alter,
suspend, discontinue, cancel or terminate, any Award theretofore granted or the
associated Evidence of Award, prospectively or retroactively; provided that any such
waiver, amendment, alteration, suspension, discontinuance, cancellation or termination
that would materially and adversely affect the rights of any Participant with respect to
any Award theretofore granted shall not to that extent be effective without the consent
of the affected Participant; provided, further, that without stockholder approval,
except as otherwise permitted under Section 15 of the Plan, (i) no amendment or
modification may reduce the Exercise Price of any Option Right or the Strike Price of
any SAR, (ii) the Committee may not cancel any outstanding Option Right or SAR and
replace it with a new Option Right or SAR, another Award or cash and (iii) the Committee
may not take any other action that is considered a “repricing” for purposes of the
stockholder approval rules of the applicable securities exchange or inter-dealer
quotation system on which the Common Stock is listed or quoted.
	 
	 	(c)	 	In case of termination of employment by reason of death, disability or
Retirement, or in the case of hardship or other special circumstances, of a Participant
who holds an Option Right or Appreciation Right not immediately exercisable in full, or
any shares of Restricted Stock as to which the substantial risk of forfeiture or the
prohibition or

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2007 Equity and Performance Incentive Plan

Plan Document

	 	 	 	restriction on transfer has not lapsed, or any unvested Restricted Stock Units, the
Committee may, in its sole discretion, accelerate the time at which such Option
Right or Appreciation Right may be exercised or the time at which such substantial
risk of forfeiture or prohibition or restriction on transfer will lapse or the time
when such transfer restriction will terminate or may waive any other limitation or
requirement under any such Award.

	21.	 	No Obligation to Exercise
	 
	 	 	Subject to Section 7(h), with respect to the deemed exercise of Stock Appreciation Rights
upon their expiration, the grant to a Participant of an Option Right or Stock Appreciation
Right shall impose no obligation upon such Participant to exercise such Option Right or
Stock Appreciation Right.
	 
	22.	 	Transfers Upon Death
	 
	 	 	Upon the death of a Participant, outstanding Awards granted to such Participant may be
exercised only by the executors or administrators of the Participant’s estate or by any
person or persons who shall have acquired such right to exercise by will or by the laws of
descent and distribution. No transfer by will or the laws of descent and distribution of
any Stock Award, or the right to exercise any Award, shall be effective to bind the Company
unless the Committee shall have been furnished with (i) written notice thereof and with a
copy of the will and/or such evidence as the Committee may deem necessary to establish the
validity of the transfer and (ii) an agreement by the transferee to comply with all the
terms and conditions of the Stock Award that are or would have been applicable to the
Participant and to be bound by the acknowledgments made by the Participant in connection
with the grant of the Stock Award. In the event that at any time any doubt exists as to the
right of any person to exercise or receive a payment under a Stock Award, the Committee
shall be entitled, in its discretion, to delay such exercise or payment until it is
satisfied that such right has been confirmed (which may, but need not be, by order of a
court of competent jurisdiction), or to permit such exercise or make payment only upon
receipt of a bond or similar indemnification (in such amount and in such form as is
satisfactory to the Committee). Except as provided in this Section 22 or otherwise provided
in the Plan or any applicable Evidence of Award with respect to transfers to Immediate
Family Members or trusts for the benefit of Immediate Family Members, no Stock Award shall
be transferable, and Stock Awards shall be exercisable only by a Participant during the
Participant’s lifetime.
	 
	23.	 	Expenses and Receipts
	 
	 	 	The expenses related to administering the Plan shall be paid by the Company. Any proceeds
received by the Company in connection with any Stock Award will be used for general
corporate purposes.
	 
	24.	 	Compliance with Rule 16b-3
	 
	 	 	It is intended that the Plan be applied and administered in compliance with Rule 16b-3. If
any provision of the Plan would be in violation of Rule 16b-3 if applied as written, such
provision shall not have effect as written and shall be given effect so as to comply with
Rule 16b-3, as determined be the Committee. The Committee is authorized to amend the Plan
and to make any such modifications to Evidence of Awards to comply with Rule 16b-3, as it
may be amended from time to time, and to make any other such amendments or modifications
deemed necessary or appropriate to better accomplish the purposes of the Plan in light of
any amendments made to Rule 16b-3.

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Plan Document

	25.	 	Failure to Comply
	 
	 	 	In addition to the remedies of the Company elsewhere provided for herein, a failure by a
Participant (or Beneficiary or permitted transferee) to comply with any of the terms and
conditions of the Plan or the agreement executed by such Participant (or Beneficiary or
permitted transferee) evidencing a Stock Award, unless such failure is remedied by such
Participant (or Beneficiary or permitted transferee) within ten days after having been
notified of such failure by the Committee, shall be grounds for the cancellation and
forfeiture of such Stock Award, in whole or in part, as the Committee, in its absolute
discretion, may determine.
	 
	26.	 	Effective Date of Plan
	 
	 	 	The Plan was adopted by the Board of Directors on July 24, 2007, subject to approval by the
stockholders of the Company. Stock Awards may be granted under the Plan at any time prior
to the receipt of such stockholder approval; provided, however, that each such grant shall
be subject to such approval. Without limitation on the foregoing, no Option Right, or SAR
may be exercised prior to the receipt of such approval and no share certificate shall be
issued pursuant to a grant of Restricted Stock or Stock Bonus prior to the receipt of such
approval.
	 
	27.	 	Term of the Plan
	 
	 	 	No grant shall be made under this Plan more than ten years after the date that this Plan is
adopted by the Board, but all grants made on or prior to such date shall continue in effect
thereafter subject to the terms thereof and of this Plan.
	 
	28.	 	Sevarability of Provisions
	 
	 	 	If any provision of this Plan is held to be invalid or unenforceable, the other provisions
of the Plan shall not be affected but shall be applied as if the invalid or unenforceable
provision had not been included in the Plan.
	 
	29.	 	Applicable Law
	 
	 	 	The Plan and all Awards granted and actions taken thereunder shall be governed by and
construed in accordance with the internal substantive laws of the State of Delaware.
	 
	30.	 	Payments to Persons Other than Participants
	 
	 	 	If the Committee shall find that any person to whom any amount is payable under the Plan is
unable to care for his or her affairs because of illness or accident, or is a minor, or has
died, then any payment due to such person or his or her estate (unless a prior claim
therefor has been made by a duly appointed legal representative) may, if the Committee so
directs the Company, be paid to his or her spouse, child, relative, an institution
maintaining or having custody of such person, or any other person deemed by the Committee to
be a proper recipient on behalf of such person otherwise entitled to payment. Any such
payment shall be a complete discharge of the liability of the Committee and the Company
therefor.

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Plan Document

	31.	 	Non-Exclusivity of Plan
	 
	 	 	Neither the adoption of this Plan by the Board nor the submission of this Plan to the
stockholders of the Company for approval shall be construed as creating any limitations on
the power of the Board to adopt such other incentive arrangements as it may deem desirable,
including, without limitation, the granting of stock options otherwise than under this Plan,
and such arrangements may be either applicable generally or only in specific cases.
	 
	32.	 	Reliance on Reports
	 
	 	 	Each member of the Committee and each member of the Board shall be fully justified in acting
or failing to act, as the case may be, and shall not be liable for having so acted or failed
to act in good faith, in reliance upon any report made by the independent public accountant
of the Company and its Affiliates and/or any other information furnished in connection with
the Plan by any agent of the Company or the Committee or the Board, other than himself or
herself.
	 
	33.	 	Other Agreements
	 
	 	 	The Committee may require as a condition to the front of and/or receipt of shares of Company
Stock under an Award, that the Participant execute lock-up, shareholder or other agreements,
as it may determine in its sole and absolute discretion.

Page 26EX-10.14

Exhibit 10.14

AMENDED AND RESTATED

AMSURG CORP.

SUPPLEMENTAL EXECUTIVE RETIREMENT SAVINGS PLAN, AS AMENDED

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Article I TITLE AND DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	1.1
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	Article II PARTICIPATION	 	 	9	 
	 
	 	 	 	 	 	 
	2.1
	 	Requirements for Participation	 	 	9	 
	 
	 	 	 	 	 	 
	Article III DEFERRAL ELECTIONS	 	 	10	 
	 
	 	 	 	 	 	 
	3.1
	 	Elections to Defer Compensation	 	 	10	 
	3.2
	 	Investment Elections	 	 	10	 
	 
	 	 	 	 	 	 
	Article IV DEFERRAL ACCOUNTS	 	 	11	 
	 
	 	 	 	 	 	 
	4.1
	 	Deferral Accounts	 	 	11	 
	4.2
	 	Company Contribution Account	 	 	12	 
	 
	 	 	 	 	 	 
	Article V VESTING	 	 	12	 
	 
	 	 	 	 	 	 
	Article VI DISTRIBUTIONS	 	 	13	 
	 
	 	 	 	 	 	 
	6.1
	 	Distribution of Deferred
Compensation and Discretionary Company Contributions	 	 	13	 
	6.2
	 	Unforeseeable Emergency Distribution	 	 	16	 
	6.3
	 	Inability to Locate Participant	 	 	17	 
	6.4
	 	Delay of Payment for Key Employees	 	 	17	 
	6.5
	 	Permissible Delays in Payment	 	 	17	 
	6.6
	 	Permitted Acceleration of Payment	 	 	18	 
	 
	 	 	 	 	 	 
	Article VII ADMINISTRATION	 	 	18	 
	 
	 	 	 	 	 	 
	7.1
	 	Committee	 	 	18	 
	7.2
	 	Committee Action	 	 	19	 
	7.3
	 	Powers and Duties of the Committee	 	 	19	 
	7.4
	 	Construction and Interpretation	 	 	20	 
	7.5
	 	Information	 	 	20	 
	7.6
	 	Compensation, Expenses and Indemnity	 	 	20	 
	7.7
	 	Quarterly Statements; Delegation of Administrative Functions	 	 	20	 
	7.8
	 	Disputes	 	 	20	 
	 
	 	 	 	 	 	 
	Article VIII MISCELLANEOUS	 	 	21	 
	 
	 	 	 	 	 	 
	8.1
	 	Unsecured General Creditor	 	 	21	 
	8.2
	 	Insurance Contracts or Policies	 	 	22	 
	8.3
	 	Restriction Against Assignment	 	 	22	 
	8.4
	 	Withholding	 	 	22	 
	8.5
	 	Amendment, Modification, Suspension or Termination	 	 	22	 
	8.6
	 	Governing Law	 	 	24	 
	8.7
	 	Section 409A	 	 	24	 
	8.8
	 	Receipt or Release	 	 	24	 
	8.9
	 	Payments on Behalf of Persons Under Incapacity	 	 	24	 

i

 

	 	 	 	 	 	 	 
	8.10
	 	Limitation of Rights and Employment Relationship	 	 	25	 
	8.11
	 	Headings	 	 	25	 

ii

 

AMENDED AND RESTATED

AMSURG CORP.

SUPPLEMENTAL EXECUTIVE RETIREMENT SAVINGS PLAN, AS AMENDED

ARTICLE I

TITLE AND DEFINITIONS

          1.1 Definitions.

     Whenever the following words and phrases are used in this Plan, with the first letter
capitalized, they shall have the meanings specified below.

               (a) “Account” or “Accounts” shall mean all of such accounts as are specifically authorized for
inclusion in this Plan.

               (b) “Affiliate” shall mean any corporation which is a member of a controlled group of
corporations of which the Company is a member, or any unincorporated trade or business which is
under the common control of or with the Company, or any affiliated service group of which the
Company is a member, which are required to be aggregated with the Company under section 414(b) or
414(c) of the Code, without substitution of a lower percentage for 80% in applying section
1563(a)(1), (2) and (3) of the Code as permitted in section 1.409A-1(h)(3) of the Regulations.

               (c) “Base Salary” shall mean a Participant’s annual base salary, excluding bonus, commissions,
incentive and all other remuneration for services rendered to Company and prior to reduction for
any salary contributions to a plan established pursuant to section 125 of the Code or qualified
pursuant to section 401(k) of the Code.

               (d) “Beneficiary” or “Beneficiaries” shall mean the person or persons, including a trustee,
personal representative or other fiduciary, last designated in writing by a Participant in
accordance with procedures established by the Committee to receive the benefits specified hereunder
in the event of the Participant’s death. No Beneficiary designation shall become effective until it
is filed with the Committee. Any designation shall be revocable at any time through a written
instrument filed by the Participant with the Committee with or without the consent of the previous
Beneficiary. No designation of a Beneficiary other than the Participant’s spouse shall be valid
unless consented to in writing by such spouse. If there is no such designation or if there is no
surviving designated Beneficiary, then the Participant’s surviving spouse shall be the Beneficiary.
If there is no surviving spouse to receive any benefits payable in accordance with the preceding
sentence, the duly appointed and currently acting personal representative of the Participant’s
estate (which shall include either the Participant’s probate estate or living trust) shall be the
Beneficiary. In any case where there is no such personal representative of the Participant’s estate
duly appointed and acting in that capacity within 90 days after the Participant’s death (or such
extended period as the Committee determines is reasonably necessary to allow such personal
representative to be appointed, but not to exceed
180 days after the Participant’s death), then Beneficiary shall mean the person or persons who
can verify by affidavit or court order to the satisfaction of the Committee that they are legally
entitled to receive the benefits specified hereunder. In the event any amount is payable under the

1

 

Plan to a minor, payment shall not be made to the minor, but instead be paid (a) to that person’s
living parent(s) to act as custodian, (b) if that person’s parents are then divorced, and one
parent is the sole custodial parent, to such custodial parent, or (c) if no parent of that person
is then living, to a custodian selected by the Committee to hold the funds for the minor under the
Uniform Transfers or Gifts to Minors Act in effect in the jurisdiction in which the minor resides.
If no parent is living and the Committee decides not to select another custodian to hold the funds
for the minor, then payment shall be made to the duly appointed and currently acting guardian of
the estate for the minor or, if no guardian of the estate for the minor is duly appointed and
currently acting within 60 days after the date the amount becomes payable, payment shall be
deposited with the court having jurisdiction over the estate of the minor. Payment by Company
pursuant to any unrevoked Beneficiary designation, or to the Participant’s estate if no such
designation exists, of all benefits owed hereunder shall terminate any and all liability of
Company.

               (e) “Board of Directors” or “Board” shall mean the Board of Directors of Company.

               (f) “Bonuses” shall mean the bonuses earned as of the last day of the Plan Year, provided a
Participant is in the employ of the Company on the last day of the Plan Year.

               (g) “Change in Control” shall mean the first to occur of any of the following events:

                    (1) Any one person or group (as described in Regulations promulgated under Section 409A)
acquires ownership of stock of the Company that, together with stock held by such person or group,
constitutes more than fifty percent (50%) of the total fair market value or total voting power of
the stock of the Company; or

                    (2) Notwithstanding that the Company has not undergone a Change in Control as described in
Section 1.1(g)(1), a Change in Control of the Company occurs on the date that either:

               (A) Any one person or more than one person acting as a group (as described in
Regulations promulgated under Section 409A), acquires or has acquired during the 12-month
period ending on the date of the most recent acquisition by such person or persons,
ownership of stock of the Company possessing thirty percent (30%) or more of the total
voting power of the stock of such corporation; or

               (B) A majority of members of the Company’s Board is replaced during any 12-month period
by directors whose appointment or election is not endorsed by a majority of the members of
the Company’s Board prior to the date of the appointment or election; or

                    (3) Any one person or group (as described in Regulations promulgated under Section 409A)
acquires or has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons assets from the Company that have a total

2

 

gross fair market
value equal to or more than forty percent (40%) of all the assets of the Company immediately prior
to such acquisition or acquisitions. For this purpose, gross fair market value means the value of
the assets of the Company, or the value of the assets being disposed of, determined without regard
to any liabilities associated with such assets.

     In determining whether a Change in Control has occurred, the following rules shall be
applicable:

                    (I) For purposes of a change in ownership described in Section 1.1(g)(1) above,
if any one person or more than one person acting as a proxy is considered to own
more than fifty percent (50%) of the total fair market value or total voting power
of the stock of a corporation, the acquisition of additional stock by the same
person or persons is not considered to cause a change in the ownership of the
corporation (or to cause a change in the effective control of the corporation as
described in Section 1.1(g)(2)). An increase in the percentage of stock owned by
any one person, or persons acting as a group, as a result of a transaction in which
the corporation acquires its stock in exchange for property will be treated as an
acquisition of stock. Section 1.1(g)(1) applies only when there is a transfer of
stock of a corporation (or issuance of stock of a corporation) and stock in such
corporation remains outstanding after the transaction. For purposes of Section
1.1(g)(1), persons will not be considered to be acting as a group solely because
they purchase or own stock of the same corporation at the same time or as a result
of a public offering. Persons will, however, be considered to be acting as a group
if they are owners of a corporation that enters into a merger, consolidation,
purchase or acquisition of stock, or similar business transaction with the
corporation. If a person, including an entity, owns stock in both corporations that
enter into a merger, consolidation, purchase or acquisition of stock, or similar
transaction, such shareholder is considered to be acting as a group with other
shareholders only with respect to the ownership in that corporation prior to the
transaction giving rise to the change and not with respect to the ownership interest
in the other corporation.

                    (II) For purposes of a change in effective control of a corporation described
in Section 1.1(g)(2) above, if one person, or more than one person acting as a
group, is considered to effectively control a corporation within the meaning of
Section 1.1(g)(2), the acquisition of additional control of the corporation by the
same person or persons is not considered to cause a change in the effective control
of the corporation within the meaning of Section 1.1(g)(2) or to cause a change in
the ownership of the corporation within the meaning of Section 1.1(g)(1). Persons
will or will not be considered to be acting as a group in accordance with rules
similar to those set forth in clause (I) above and as specifically provided in
section 1.409A-3(i)(5)(vi)(D) of the Regulations under Section 409A.

                    (III) For purposes of a change in the ownership of a substantial portion of a
corporation’s assets described in Section 1.1(g)(3) above, there is not

3

 

a Change in
Control event when there is a transfer to an entity that is controlled by the
shareholders of the transferring corporation immediately after the transfer. A
transfer of assets by a corporation is not treated as a change in ownership of such
assets if the assets are transferred to (i) a shareholder of the corporation
(immediately before the asset transfer) in exchange for or with respect to its
stock, (ii) an entity, fifty percent (50%) or more of the total value or voting
power of which is owned, directly or indirectly, by the corporation, (iii) a person,
or more than one person acting as a group, that owns, directly or indirectly, fifty
percent (50%) or more of the total value or voting power of all the outstanding
stock of the corporation, or (iv) an entity, at least fifty (50%) of the total value
or voting power of which is owned, directly or indirectly, by a person described in
immediately preceding sub-clause (iii) of this clause (III). For purposes of the
foregoing, and except as otherwise provided, a person’s status is determined
immediately after the transfer of assets. Persons will or will not be considered to
be acting as a group in accordance with rules similar to those set forth in clause
(I) above, and as specifically provided in section 1.409A-3(i)(5)(vii)(C) of the
Regulations under Section 409A.

                    (IV) Code Section 318(a) applies for purposes of determining stock ownership.
Stock underlying a vested option is considered owned by the individual who owns the
vested option (and the stock underlying an unvested option is not considered owned
by the individual who holds the unvested option). If, however, a vested option is
exercisable for stock that is not substantially vested (as defined by Regulation
section 1.83-3(b) and (j)) the stock underlying the option is not treated as owned
by the individual who holds the option.

                    (V) Whether a Change in Control has occurred will be determined by the Company
in accordance with the rules and definitions set forth in this Section 1.1(g). This
determination shall be made in a manner consistent with Section 409A and the
Regulations thereunder.

               (h) “Code” shall mean the Internal Revenue Code of 1986, as amended. Whenever a reference is
made herein to a specific Code section, such reference shall be deemed to include any successor
Code section having the same or a substantially similar purpose.

               (i) “Committee” shall mean the committee appointed by the Board to administer the Plan in
accordance with Article VII; provided that, if no committee has been appointed by the Board in
accordance with Article VII, the Committee shall be the Compensation Committee of the Board.

               (j) “Company” shall mean AmSurg Corp.

               (k) “Company Contribution Account” shall mean the bookkeeping account maintained by the
Company for each Participant that is credited with an amount equal to the Company Discretionary
Contribution Amount, if any, and earnings and losses on such amounts pursuant to Section 4.2.

4

 

               (l) “Company Discretionary Contribution Amount” with respect to a Participant shall mean such
amount, if any, contributed by the Company, on a purely discretionary basis, under the Plan for the
benefit of Participant for a Plan Year. Such amount may differ from Participant to Participant both
in amount, if any, and as a percentage of Compensation.

               (m) “Compensation” shall be base salary, bonus, and commissions.

               (n) “Deferral Account” shall mean the bookkeeping account maintained by the Committee for each
Participant that is credited with amounts equal to (1) the portion of the Participant’s
Compensation that he or she elects to defer, and (2) earnings and losses pursuant to Section 4.1.

               (o) “Deferral Election Form” shall mean a form provided by the Committee pursuant to which an
Eligible Employee may (i) elect to defer Compensation for a particular Plan Year in accordance with
the Plan and (ii) elect an Elected Withdrawal Schedule and/or an Elected Termination Schedule with
respect to the Compensation deferred for a particular Plan Year in accordance with the Plan. The
form and content of the Deferral Election Form may be revised from time to time consistent with the
Plan, by or at the direction of the Company’s chief executive officer, chief financial officer or
chief legal officer.

               (p) “Distributable Amount” at any time shall mean the vested balance in the Participant’s
Deferral Account and Company Contribution Account at such time.

               (q) “Domestic Relations Order” shall mean a judgment, decree or order (including approval of a
property settlement agreement) which is made pursuant to a state domestic relations law, which
relates to the provision of child support, alimony payments or marital property rights to a spouse,
child or other dependent of a Participant (“Alternate Payee”), and which creates or recognizes the
existence of an Alternate Payee’s right to, or assigns to an Alternate Payee the right to, receive
all or a portion of the benefits payable to a Participant.

               (r) “Early Retirement” shall mean a Participant’s Separation from Service from the Company at
a time that the Participant’s age plus years of employment with the Company as of the date of the
Separation from Service is equal to or greater than 70.

               (s) “Effective Date” for this Amended and Restated Plan shall mean February 7, 2008.

               (t) “Elected Termination Schedule” shall mean a distribution schedule elected by a
Participant, as set forth on the Deferral Election Form for a Plan Year or as otherwise elected by
the Participant pursuant to the Plan, which shall govern certain withdrawals in accordance with
Section 6.1(a) in the case of a Participant who Retires or Separates from Service
due to Long Term Disability. Each Elected Termination Schedule shall satisfy the requirements
of Section 6.1(a).

               (u) “Elected Withdrawal Schedule” shall mean a distribution schedule elected by a Participant
as set forth on the Deferral Election Form for a Plan Year or as otherwise elected by the
Participant pursuant to the Plan, which shall govern certain in-service withdrawals in

5

 

accordance
with Section 6.1(b). Each Elected Withdrawal Schedule shall satisfy the requirements of Sections
6.1(c) and 6.1(d).

               (v) “Eligible Employee” shall be a select group of management and/or highly compensated
employees (within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1)) of AmSurg Corp. or
any of its Affiliates, designated by the Committee as eligible to participate under the Plan. The
Company shall have the authority to take any and all actions necessary or desirable in order for
the Plan to satisfy the requirements set forth in ERISA and the regulations thereunder applicable
to plans maintained for employees who are members of a select group of management or highly
compensated employees.

               (w) “Fund” or “Funds” shall mean one or more of the deemed investment funds selected by the
Committee pursuant to Section 3.2(b).

               (x) “Identification Date” shall mean the date determined by the Committee in accordance with
section 1.409A-1(i)(3) of the Regulations which is the last day of the 12-month period for
determination of Key Employees. Unless otherwise designated, the Identification Date shall be
December 31.

               (y) “Initial Election Period” shall mean the 30-day period following the time the Company
designates an employee as an Eligible Employee; provided, however, if a designated Eligible
Employee participates in any other nonqualified deferred compensation plan maintained by the
Company that must be aggregated with this Plan under Section 409A, then the Eligible Employee must
wait until the next Plan Year to begin to participate in this Plan.

               (z) “Interest Rate” shall mean, for each Fund, an amount equal to the net gain or loss on the
assets of such Fund during each business day or other period, expressed as a percentage of the
balance of the Fund at the beginning of each business day or other period.

               (aa) “Key Employee” shall mean a “key employee” of the Company as described in section
416(i)(1)(A)(i), (ii) or (iii) of the Code (without regard to section 416(i)(5) of the Code)
(generally, an officer having annual compensation of more than $150,000 (in 2008), as adjusted; a
5% owner; or a 1% owner having annual compensation of more than $150,000), determined at any time
during the 12-month period ending on the Identification Date. A Participant who is a Key Employee
on an Identification Date shall be treated as a Key Employee for the twelve month period beginning
on January 1 (or such other date designated in accordance with Section 6.4) immediately following
such Identification Date. For purposes hereof, the term “officer” shall be determined on the basis
of all facts, including the source of his authority, the term for which elected or appointed, and
the nature and extent of his duties. Generally, the term “officer” means an administrative
executive who is in regular and continued service. An employee who merely has the title of an
officer, but not the authority of an officer, is not to be
considered an officer hereunder. Similarly, an employee who does not have the title of an
officer but has the authority of an officer is an officer for this purpose. Furthermore, for
purposes hereof, during any 12-month period following an Identification Date, no more than fifty
(50) employees of all members of the controlled group consisting of the Company and all Affiliates,
or if less, the greater of three (3) individuals or ten percent (10%) of such employees of all
members of such controlled group, shall be treated as officers hereunder.

6

 

               (bb) “Long Term Disability” shall mean a physical or mental condition of a Participant
resulting in:

                    (1) evidence that the Participant is deemed by the Social Security Administration to be
eligible to receive a disability benefit, or

                    (2) evidence that the Participant is (i) unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less than 12 months or
(ii) by reason of any medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less than 12 months,
receiving income replacement benefits for a period of not less than three months under an accident
and health plan covering the Company’s employees.

               (cc) “Normal Retirement” shall mean a Participant’s Separation from Service from the Company
or any of its Affiliates on or after such Participant’s 65th birthday.

               (dd) “Open Enrollment Period” shall mean the December 1 through December 31 immediately
preceding each Plan Year.

               (ee) “Participant” shall mean any Eligible Employee who becomes a Participant in this Plan in
accordance with Article II.

               (ff) “Payment Date” shall mean (i) with respect to distributions pursuant to an Elected
Withdrawal Schedule previously elected by a Participant for a particular Plan Year, the last
regularly scheduled pay day during February of the calendar year previously elected by the
Participant in the relevant Deferral Election Form regarding such Plan Year, and (ii) with respect
to distributions upon a Separation from Service or Retirement of a Participant, the last regularly
scheduled pay day during February of the calendar year beginning after the Participant’s Separation
from Service or Retirement. All initial first year installments, or Distributable Amounts, paid as
a result of an Elected Withdrawal Schedule, Separation from Service, and/or Retirement, will be
determined based upon the prior year’s December 31st vested Account balances. Subsequent year’s
installments will be fixed at this same amount with only the final installment changing to equal
the value of the vested Account balance on the preceding December 31st.

               (gg) “Plan” shall mean this Amended and Restated AmSurg Corp. Supplemental Executive
Retirement Savings Plan.

               (hh) “Plan Year” shall mean January 1 to December 31.

               (ii) “Regulations” shall mean the regulations promulgated by the Treasury Department under the
Code.

               (jj) “Retirement” or “Retires” shall mean a Participant’s Separation from Service upon Normal
Retirement or Early Retirement.

7

 

               (kk) “Section 409A” shall mean section 409A of the Code, related Regulations and guidance
thereunder, including such Regulations and guidance promulgated after the Effective Date of the
Plan.

               (ll) “Separation from Service” or “Separates from Service” shall mean for any Participant the
occurrence of any one of the following events:

	 	(1)	 	The Participant is discharged by the Company;
	 
	 	(2)	 	The Participant voluntarily terminates employment with the Company; or
	 
	 	(3)	 	The Participant dies while employed with the Company.

                    For purposes of determining whether a Separation from Service has occurred, the term “Company”
shall include any “Affiliate”, and no Separation from Service shall be deemed to have occurred if
the Participant remains employed by any Affiliate.

                    A Separation from Service does not occur if the Participant is on military leave, sick leave
or other bona fide leave of absence if the period of leave does not exceed six months or such
longer period during which the Participant’s right to reemployment is provided by statute or
contract. If the period of leave exceeds six months and the Participant’s right to reemployment is
not provided either by statute or contract, a Separation from Service will be deemed to have
occurred on the first day following the six-month period. If the period of leave is due to any
medically determinable physical or mental impairment that can be expected to result in death or can
be expected to last for a continuous period of not less than six months, where the impairment
causes the Participant to be unable to perform the duties of his or her position of employment or
any substantially similar position of employment, a 29 month period of absence may be substituted
for the six month period.

                    Whether a termination of employment has occurred is based on whether the facts and
circumstances indicate that the Company and the Participant reasonably anticipated that no further
services would be performed after a certain date or that the level of bona fide services the
Participant would perform after such date (whether as an employee or as an independent contractor)
would permanently decrease to no more than 20 percent of the average level of bona fide services
performed (whether as an employee or an independent contractor) over the immediately preceding 36
month period (or the full period of services to the Company if the employee has been providing
services to the Company for less than 36 months).

                    If a Participant provides services both as an employee and as a member of the Board, the
services provided as a director are not taken into account in determining whether the Participant
has incurred a Separation from Service as an employee for purposes of this Plan,
unless this Plan is aggregated under Section 409A with any plan in which the Participant
participates as a director.

                    All determinations of whether a Separation from Service has occurred will be made in a manner
consistent with Section 409A and the Regulations thereunder.

8

 

               (mm) “Unforeseeable Emergency Distribution” shall mean a distribution due to a severe
financial hardship to the Participant resulting from an illness or accident of the Participant or
of his or her spouse, his or her Beneficiary, or his or her dependent (as defined in Section 152 of
the Code without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B)), loss of a Participant’s
property due to casualty (including the need to rebuild a home following damage to a home not
otherwise covered by insurance), or other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant. The circumstances that would
constitute an unforeseeable emergency will depend upon the relevant facts and circumstances of each
case, but, in any case, an Unforeseeable Emergency Distribution may not be made to the extent that
such unforeseeable emergency is or may be relieved (i) through reimbursement or compensation by
insurance or otherwise, (ii) by liquidation of the Participant’s assets, to the extent the
liquidation of assets would not itself cause severe financial hardship, or (iii) by cessation of
deferrals under this Plan.

ARTICLE II

PARTICIPATION

          2.1 Requirements for Participation. An Eligible Employee shall become a Participant in the
Plan by (i) timely completing and submitting a Deferral Election Form for a Plan Year in accordance
with Section 3.1(a), and all other relevant and appropriate forms as required by the Committee, and
(ii) completing any medical questionnaire required pursuant to Section 8.2.

ARTICLE III

DEFERRAL ELECTIONS

          3.1 Elections to Defer Compensation.

               (a) Initial Election Period. Subject to the provisions of Article II, each Eligible
Employee may elect to defer a percentage of Compensation by filing with the Committee a signed and
completed election that conforms to the requirements of this Section 3.1, on a Deferral Election
Form, no later than the last day of the Open Enrollment Period prior
to each Plan Year, or in the case of a newly designated Eligible Employee, on the last day of
his or her Initial Election Period subject to the limitations of Section 1.1(y) of the Plan.

               (b) General Rule. The Compensation that an Eligible Employee may elect to defer in
accordance with Section 3.1(a) shall not exceed fifty (50) percent of the Eligible Employee’s base
salary; provided that an Eligible Employee may defer up to fifty (50) percent of bonuses for a Plan
Year; and provided further that the total amount deferred by a Participant shall be limited in any
calendar year, if necessary, to satisfy Social Security Tax (including Medicare), income tax and
employee benefit plan withholding requirements as determined in the sole and absolute discretion of
the Committee. An Eligible Employee may NOT elect to change or revoke an election to defer
commissions or salary during a Plan Year. Bonus deferral elections are ALSO irrevocable for the
Plan Year.

9

 

               (c) Duration of Compensation Deferral Election. An Eligible Employee’s initial
election to defer Compensation upon his or her initial participation in the Plan must be made prior
to the end of the Initial Election Period and shall be effective only with respect to Compensation
earned in the applicable Plan Year after such deferral election is processed. Elections made under
a Deferral Election Form shall remain in effect unless amended during a subsequent annual Open
Enrollment Period. A Participant who remains an Eligible Employee for a subsequent Plan Year may
increase, decrease or terminate an election with respect to Compensation for any subsequent Plan
Year by filing a new signed and completed Deferral Election Form prior to the end of the Open
Enrollment Period prior to such Plan Year. Any subsequent Deferral Election Forms executed by a
Participant shall only apply to Compensation paid to the Participant in subsequent Plan Years. For
purposes of determining whether amounts are paid with respect to services performed in a particular
Plan Year, Compensation paid on or after January 1 solely for services performed during the final
payroll period described in section 3401(b) of the Code containing the immediately preceding
December 31 shall be treated as Compensation for services performed in the Plan Year when payment
is made.

          3.2 Investment Elections.

               (a) At the time of making the elections described in Section 3.1, the Participant shall
designate, on a form provided by the Committee, the investment funds or types of investment funds
in which the Participant’s Account will be deemed to be invested for purposes of determining the
amount of earnings to be credited to that Account. In making the designation pursuant to this
Section 3.2, the Participant may specify that all or any multiple of his or her Account be deemed
to be invested, in whole percentage increments, in one or more of investment funds or types of
investment funds provided under the Plan as communicated from time to time by the Committee. On a
form provided by the Committee, a Participant may change each of the investment allocations monthly
while employed or after retirement. Changes made by the end of the month will be effective the
first business day of the following month. If a Participant fails to elect a fund or type of fund
under this Section 3.2, he or she shall be deemed to have elected a money market type of investment
fund as determined by the Company in its sole discretion.

               (b) Although the Participant may designate an investment fund or type of investments, the
Committee shall not be bound by such designation. The Committee shall select from time to time, in
its sole and absolute discretion, commercially available investments of each of the types
communicated by the Committee to the Participant pursuant to Section 3.2(a) above to be the Funds.
The Interest Rate of each such commercially available investment fund shall be used to determine
the amount of earnings or losses to be credited to Participant’s Account under Article IV.
Participants shall have no ownership interests in any investments made by the Company.

ARTICLE IV

DEFERRAL ACCOUNTS

          4.1 Deferral Accounts.

10

 

     The Committee shall establish and maintain a Deferral Account for each Participant under the
Plan. Each Participant’s Deferral Account shall be further divided into separate subaccounts
(“investment fund subaccounts”), each of which corresponds to an investment fund elected by the
Participant pursuant to Section 3.2(a). A Participant’s Deferral Account shall be credited as
follows:

               (a) On the fifth business day after amounts are withheld and deferred from a Participant’s
Compensation, the Committee shall credit the investment fund subaccounts of the Participant’s
Deferral Account, for the Plan Year in which the Compensation was earned, with an amount equal to
Compensation deferred by the Participant in accordance with the Participant’s election under
Section 3.2(a); that is, the portion of the Participant’s deferred Compensation that the
Participant has elected to be deemed to be invested in a certain type of investment fund shall be
credited to the investment fund subaccount corresponding to that investment fund;

               (b) Each business day, each investment fund subaccount of a Participant’s Deferral Account
shall be credited with earnings or losses in an amount equal to that determined by multiplying the
balance credited to such investment fund subaccount as of the prior day plus contributions credited
that day to the investment fund subaccount by the Interest Rate for the corresponding fund selected
by the Company pursuant to Section 3.2(b);

               (c) In the event that a Participant elects for a given Plan Year’s deferral of Compensation to
have an Elected Withdrawal Schedule, all amounts attributed to the deferral of Compensation for
such Plan Year shall be accounted for in a manner which allows separate accounting for the deferral
of Compensation and investment gains and losses associated with such Plan Year’s deferral of
Compensation.

          4.2 Company Contribution Account.

     The Committee shall establish and maintain a Company Contribution Account for each Participant
under the Plan. Each Participant’s Company Contribution Account shall be further divided into
separate investment fund subaccounts corresponding to the investment fund elected by the
Participant pursuant to Section 3.2(a). A Participant’s Company Contribution Account shall be
credited as follows:

               (a) On a date at the Company’s discretion, the Committee shall credit the investment fund
subaccounts of the Participant’s Company Contribution Account with an amount equal to the Company
Discretionary Contribution Amount, if any, applicable to that Participant, that is, the proportion
of the Company Discretionary Contribution Amount, if any, which the Participant elected to be
deemed to be invested in a certain type of investment fund shall be credited to the corresponding
investment fund subaccount; and

               (b) Each business day, each investment fund subaccount of a Participant’s Company Contribution
Account shall be credited with earnings or losses in an amount equal to that determined by
multiplying the balance credited to such investment fund subaccount as of the prior day plus
contributions credited that day to the investment fund subaccount by the Interest Rate for the
corresponding Fund selected by the Company pursuant to Section 3.2(b).

11

 

ARTICLE V

VESTING

     A Participant shall be 100% vested in his or her Deferral Account.

     A Participant’s Company Contribution Account will vest according to the schedule set forth
below.

	 	 	 	 	 
	Plan Year*	 	Vested Percentage
	 
	 	 	 	 
	Year 1**

	 	 	20	%
	Year 2

	 	 	40	%
	Year 3

	 	 	60	%
	Year 4

	 	 	80	%
	Year 5

	 	 	100	%

 

			
	*	 	A Participant will be given vesting credit for a Plan Year on the last day of that Plan Year if
he is still employed.
	 
	**	 	Plan Year for which a Company Discretionary Contribution Amount is made. Each Company
Discretionary Contribution Amount made pursuant to the Plan shall be subject to the vesting
schedule described above independently. For example, a Company Discretionary Contribution Amount
contributed by the Company in 2010 will fully vest in 2015, whereas a Company
Discretionary Contribution Amount contributed by the Company in 2011 will not fully vest until
2016.

     Notwithstanding any other provision of the Plan, a Participant’s Company Contribution Account
balances will become fully vested on the earliest of the following dates:

               (a) the date of the Participant’s Retirement;

               (b) the date of the Participant’s death, provided the Participant is actively employed on such
date;

               (c) the date of the Participant’s Long Term Disability, provided the Participant is actively
employed on such date;

               (d) the date of termination of the Plan;

               (e) the date of a Change in Control.

     The portion of a Participant’s Company Contribution Account, which is not vested as described
above, will be forfeited as of the date the Participant’s Separation from Service.

     Notwithstanding any other provision of this Plan, if any amount of a Participant’s Company
Contribution Account regarding a particular Plan Year (e.g., a Participant’s Compensation which is
deferred for the 2010 Plan Year) is scheduled to be distributed from the

12

 

Participant’s Company
Contribution Account prior to the Participant’s Separation from Service at a time when the
Participant is not 100% vested in such portion of the Participant’s Company Contribution Account,
then such unvested amount shall remain in the Participant’s Account and continue to vest in
accordance with this Article V of the Plan and shall be paid (to the extent such amounts later
become vested) in accordance with Sections 6.1(a), (e) or (f) of the Plan as the case may be.

ARTICLE VI

DISTRIBUTIONS

          6.1 Distribution of Deferred Compensation and Discretionary Company Contributions.

               (a) Distribution upon Retirement or Separation from Service due to Long Term
Disability. In the case of a Participant who (i) (A) Retires or (B) Separates from Service
from the Company or an Affiliate due to Long Term Disability (and, as a result of such Retirement
or Separation from Service is no longer employed by the Company or its Affiliates) and (ii) has an
Account balance of more than $50,000 at the time of such Retirement or Separation from Service, the
Distributable Amount shall be paid to the Participant either (i) in substantially equal annual
installments over ten (10) years commencing on the Participant’s
Payment Date (if no Elected Termination Schedule is filed with the Company in accordance with
this Section 6.1(a) regarding a particular Plan Year) or (ii) in such form and at such time as
otherwise set forth in a properly and timely completed and filed Elected Termination Schedule
elected by the Participant on a properly executed Deferral Election Form provided by the Company
during each annual Open Enrollment Period (with respect to Compensation earned in each individual
Plan Year), provided that any such Elected Termination Schedule provides for only one of the
following alternatives:

                    (1) A lump sum distribution on the Participant’s Payment Date.

                    (2) Substantially equal annual installments over five (5) years beginning on the Participant’s
Payment Date.

                    (3) Substantially equal annual installments over fifteen (15) years beginning on the
Participant’s Payment Date.

                    (4) Excluding lump sum elections or the final distribution installment from any preceding
installment election, which will be paid to Participants as a lump sum distribution amount, all
installment amounts paid to Participants will be determined by dividing the December 31st vested
Account balance from the year prior to Participant’s Payment Date, by the number of total
installments elected. The amount determined shall remain fixed until the final and last
installment, which will be an increased or decreased distribution amount in order to distribute the
Plan Year’s remaining balance plus all accrued gains/losses on the Plan Year’s balance being
distributed.

                    A Participant may modify an Elected Termination Schedule that he or she has previously elected
with respect to a particular Plan Year’s Compensation, provided such

13

 

modification (i) shall not
take effect until at least one (1) year after the date the modification is made, (ii) occurs at
least one (1) year before the initial payment is due under the Elected Termination Schedule (with
regard to the particular Plan Year for which such Elected Termination Schedule relates) in effect
prior to the extension, and (iii) extends the Payment Date under the Elected Termination Schedule
(with regard to the particular Plan Year for which such Elected Termination Schedule relates) for
at least five (5) years. If an attempted modification does not meet the requirements of the
following sentence, then it shall be void, and the Elected Termination Schedule in effect prior to
such attempted modification shall remain effective.

                    Notwithstanding any other provision of this Section 6.1(a), in the case of a Participant who
(i) (A) Retires or (B) Separates from Service from the Company or an Affiliate due to Long Term
Disability and (ii) has an Account balance of $50,000 or less at the time of such Retirement of
Separation from Service, the Distributable Amount shall be paid to the Participant in a lump sum
distribution on the Participant’s Payment Date regardless of any previous elections made by the
Participant regarding his or her Accounts.

                    A Participant’s Account shall continue to be credited with earnings pursuant to Section 4.1 of
the Plan until all amounts credited to his or her Account under the Plan have been distributed.

               (b) Distribution Under Elected Withdrawal Schedule (In-Service). In the case of a
Participant who has previously elected (pursuant to a properly executed Deferral Election Form) an
Elected Withdrawal Schedule with regard to Compensation earned in a particular Plan Year which
requires a distribution to the Participant while the Participant is still in the employ of the
Company or an Affiliate, such Participant shall receive his or her Distributable Amount in
accordance with such Elected Withdrawal Schedule.

               (c) Permitted Withdrawal Schedules. A Participant’s Elected Withdrawal Schedule with
respect to Compensation deferred under this Plan for a given Plan Year may not select a calendar
year for the commencement of distributions according to such Elected Withdrawal Schedule which is
earlier than two (2) years from the last day of the Plan Year during which the Compensation was
deferred and the Payment Date for such Elected Withdrawal Schedule will be determined in accordance
with the Plan with regard to such calendar year. A Participant’s Elected Withdrawal Schedule shall
otherwise conform with the choices available on the applicable Deferral Election Form. An Elected
Withdrawal Schedule selected by a Participant under a properly executed Deferral Election Form may
only provide for the Distributable Amount to be paid to the Participant from among the following
alternatives:

                    (1) A lump sum distribution on the Participant’s Payment Date.

                    (2) Annual installments over two (2) to five (5) years beginning on the Participant’s Payment
Date.

                    (3) Excluding lump sum elections or the final distribution installment from any proceeding
installment election, which will be paid to Participants as a lump sum distribution amount, all
installment amounts paid to Participants will be determined by dividing the December 31st vested
Account balance from the year prior to Participant’s Payment Date, by

14

 

the number of total
installments elected. The amount determined shall remain fixed until the final and last
installment, which will be an increased or decreased distribution amount in order to distribute the
Plan Year’s remaining balance plus all accrued gains/losses on the Plan Year’s balance being
distributed.

                    (4) All distributions under an Elected Withdrawal Schedule will exclude any amounts in a
Participant’s Company Contribution Account that are not 100% vested in accordance with the vesting
schedule set forth by the Committee. Any nonvested amounts which are not distributed pursuant to
this subparagraph (4) shall remain in the Participant’s Account and continue to vest in accordance
with Article V of the Plan and shall be paid (to the extent such amounts later become vested) in
accordance with Sections 6.1(a), (e) or 6.1(f) of the Plan as the case may be.

                         Notwithstanding any other provision of this Section 6.1(b), if the Distributable Amount of a
Participant’s Account balance which is governed by an Elected Withdrawal Schedule is less than
$25,000, then such Elected Withdrawal Schedule shall be canceled and the Distributable Amount of
the Participant’s Account balance governed by such Elected Withdrawal Schedule shall be paid to the
Participant in a lump sum distribution on the Participant’s Payment Date regardless of any previous
elections made by the Participant regarding his or her Accounts.

               (d) Extensions. A Participant may extend a previous Elected Withdrawal Schedule
regarding a particular Plan Year or change the form of payment elected thereunder (for example,
lump sum installment(s)), provided such extension (i) shall not take effect until at least one (1)
year after the date on which the extension is made, (ii) occurs at least one (1) year before the
initial payment is due under the Elected Withdrawal Schedule in effect prior to the extension, and
(iii) extends the Payment Date under the Elected Withdrawal Schedule for at least five (5) years.
The Participant shall have the right to twice modify any Elected Withdrawal Schedule in accordance
with the preceding sentence. In the event a Participant Separates from Service from the Company or
an Affiliate prior to the last scheduled distribution under an Elected Withdrawal Schedule, other
than by reason of death, the portion of the Distributable Amount of the Participant’s combined
Accounts under the Plan associated with an Elected Withdrawal Schedule which have been not been
distributed prior to such Separation from Service shall be distributed in accordance with Sections
6.1(a), (e) or (f) of the Plan, as the case may be; provided, however, if the payment of such
Distributable Amount pursuant to Sections 6.1(a), (e) or (f) of the Plan would delay the payment of
such amount past the date by which such payment otherwise would have been made under the Elected
Withdrawal Schedule, then such Distributable Amounts shall be paid in accordance with the Elected
Withdrawal Schedule.

               (e) Distribution for Separation from Service due to Death. The Beneficiary of a
Participant who dies before the total Distributable Amount of the Participant’s Account balance has
been paid shall receive the amount of any remaining Distributable Amount in a lump sum within
ninety (90) days of the Participant’s death, with the date of such distribution determined by the
Company in its sole discretion.

               (f) Distribution for Separation from Service Prior to Retirement or not Due to a Long Term
Disability. A Participant who Separates from Service prior to Retirement or not due to Long
Term Disability will receive the total Distributable Amount of his or her Account

15

 

balance in a lump
sum within ninety (90) days following the date the Participant’s Separation from Service occurs,
with the date of such distribution determined by the Company in its sole discretion. Any nonvested
portion of the Participant’s Account shall be forfeited.

          6.2 Unforeseeable Emergency Distribution.

     A Participant shall be permitted to elect an Unforeseeable Emergency Distribution from his or
her vested Accounts prior to the Payment Date, subject to the following restrictions:

               (a) The election to take an Unforeseeable Emergency Distribution shall be made by filing a
form provided by and filed with Committee prior to the end of any calendar month.

               (b) The Committee shall have made a determination that the requested distribution constitutes
an Unforeseeable Emergency Distribution in accordance with Section 1.1(mm) of the Plan.

               (c) The amount determined by the Committee as an Unforeseeable Emergency Distribution shall be
paid in a single cash lump sum as soon as practicable after the
end of the calendar month in which the Unforeseeable Emergency Distribution election is made
and approved by the Committee.

               (d) If a Participant receives an Unforeseeable Emergency Distribution, the Participant will be
ineligible to participate in the Plan for the balance of the Plan Year.

               (e) Any such distributions will be made pro rata and only from fully vested Account balances.

     The amount of an Unforeseeable Emergency Distribution shall be limited to the amount
reasonably necessary to satisfy the emergency (which may include amounts necessary to pay any
federal, state, local or foreign income taxes or penalties reasonably anticipated to result from
the Unforeseeable Emergency Distribution). The determination of the amount necessary to satisfy the
emergency shall take into account any additional Compensation which may result from a cancellation
of the Participant’s deferrals under this Plan in accordance with Section 1.1(mm).

          6.3 Inability to Locate Participant.

     In the event that the Committee is unable to locate a Participant or Beneficiary within two
(2) years following the required Payment Date, the amount allocated to the Participant’s Deferral
Account shall be forfeited. If, after such forfeiture, the Participant or Beneficiary later claims
such benefit, such benefit shall be reinstated without interest or earnings.

          6.4 Delay of Payment for Key Employees.

               Except as otherwise provided in this Section 6.4, a distribution made due to a Participant’s
Separation from Service to a Participant who is a Key Employee as of the date of his or her
Separation from Service shall not occur before the date which is six months after the Separation
from Service.

16

 

               For this purpose a Participant who is a Key Employee on an Identification Date shall be
treated as Key Employee for the twelve month period beginning on the January 1 immediately
following such Identification Date. The Administrator may designate another date for commencement
of this twelve month period, provided that such date must follow the Identification Date and occur
no later than the first day of the fourth month thereafter, provided that such designation is made
in accordance with Regulations under Section 409A and is the same for all nonqualified deferred
compensation plans of the Company or any Affiliate.

               The Plan Sponsor may elect to apply an alternative method to identify Participants who will be
treated as Key Employees for purposes of the six month delay in distributions if the method
satisfies each of the following requirements: (i) the alternative method is reasonably designed to
include all Key Employees, (ii) is an objectively determinable standard provided no direct or
indirect election to any Participant regarding its application, and (iii) results in either all Key
Employees or no more than 200 Key Employees being identified in the class as of any date. Use of
an alternative method that satisfies these requirements will not be treated as a change in the time
and form of payment for purposes of section 1.409A-2(b) of the Regulations.

     The six month delay does not apply to payments pursuant to a Domestic Relations Order
described in Section 6.6 or to payments that occur after the death of the Participant.

          6.5 Permissible Delays in Payment.

     Distributions may be delayed beyond the date payment would otherwise occur in accordance with
the provisions of this Article VI in any of the following circumstances as long as the Company
treats all payments to similarly situated Participants on a reasonably consistent basis.

               (a) The Committee may delay payment if it reasonably anticipates that its deduction with
respect to such payment would not be permitted due to the application of section 162(m) of the
Code. Payment must be made during the Participant’s first taxable year in which the Committee
reasonably anticipates, or should reasonably anticipate, that if the payment is made during such
year the deduction of such payment will not be barred by the application of section 162(m) of the
Code or during the period beginning with the Participant’s Separation from Service and ending on
the later of the last day of the Company’s taxable year in which the Participant Separates from
Service or the 15th day of the third month following the Participant’s Separation from Service.

               (b) The Committee may also delay payment if it reasonably anticipates that the making of the
payment will violate federal securities laws or other applicable laws provided payment is made at
the earliest date on which the Committee reasonably anticipates that the making of the payment will
not cause such violation.

               (c) The Committee may delay payment during the periods specified in Section 7.8 for review and
appeal of claims or during any other period while there is a bona fide dispute as to the amount or
timing of such payment in accordance with section 1.409A-3(g) of the Regulations.

17

 

               (d) The Company reserves the right to amend the Plan to provide for a delay in payment upon
such other events and conditions as the Secretary of the Treasury may prescribe in generally
applicable guidance published in the Internal Revenue Bulletin.

          6.6 Permitted Acceleration of Payment.

     The Committee may permit acceleration of the time or schedule of any payment or amount
scheduled to be paid pursuant to a payment under the Plan provided such acceleration would be
permitted by the provisions of section 1.409A-3(j)(4) of the Regulations. The Committee shall not
permit any Participant discretion with respect to whether a payment will be accelerated and shall
not permit any election, direct or indirect, by a Participant as to whether the Committee’s
discretion under this Section 6.6 will be exercised. Acceleration of payments shall be permitted
at such times and in such amounts as specified in a Domestic Relations Order which is determined by
the Committee to be valid and which does not require the Plan to pay benefits in excess of the
Participant’s Accounts. The Committee may require that reasonable expenses incurred and paid by
the Company in evaluating the Domestic Relations Order and complying with its terms shall be
deducted from the Accounts of the Participant to which it relates.
Acceleration of benefit payments shall also occur under any of the circumstances wherein the Plan
is terminated pursuant to Section 8.5(b) of the Plan.

ARTICLE VII

ADMINISTRATION

          7.1 Committee.

     The Board may appoint a committee to serve, at the pleasure of the Board, as the Committee.
The number of members comprising such committee shall be determined by the Board, which may from
time to time vary the number of members. A member of the Committee appointed pursuant to this
Section 7.1 may resign by delivering a written notice of resignation to the Board. The Board may
remove any member by delivering a certified copy of its resolution of removal to such member.

          7.2 Committee Action.

     The Committee shall act at meetings by affirmative vote of a majority of the members of the
Committee. A majority of the members of the Committee shall constitute a quorum in any meeting of
the Committee. Any action permitted to be taken at a meeting may be taken without a meeting if,
prior to such action, a written consent to the action is signed by all members of the Committee and
such written consent is filed with the minutes of the proceedings of the Committee. A member of the
Committee shall not vote or act upon any matter which relates solely to himself or herself as a
Participant. The Chairman or any other member or members of the Committee designated by the
Chairman may execute any certificate or other written direction on behalf of the Committee.

          7.3 Powers and Duties of the Committee.

               (a) The Committee, on behalf of the Participants and their Beneficiaries, shall enforce the
Plan in accordance with its terms, shall be charged with the general administration of

18

 

the Plan,
and shall have all powers necessary to accomplish its purposes, including, but not by way of
limitation, the following:

                    (1) To select the Funds in accordance with Section 3.2(b) hereof;

                    (2) To construe and interpret the terms and provisions of this Plan;

                    (3) To compute and certify to the amount and kind of benefits payable to Participants and
their Beneficiaries;

                    (4) To maintain all records that may be necessary for the administration of the Plan;

                    (5) To provide for the disclosure of all information and the filing or provision of all
reports and statements to Participants, Beneficiaries or governmental agencies as shall be required
by law;

                    (6) To make and publish such rules for the regulation of the Plan and procedures for the
administration of the Plan as are not inconsistent with the terms hereof;

                    (7) To appoint one or more Plan administrators or any other agent, and to delegate to them
such powers and duties in connection with the administration of the Plan as the Committee may from
time to time prescribe; and

                    (8) To take all actions necessary for the administration of the Plan, including determining
whether to hold or discontinue the Policies.

          7.4 Construction and Interpretation.

     The Committee shall have full discretion to construe and interpret the terms and provisions of
this Plan, which interpretations or construction shall be final and binding on all parties,
including but not limited to the Company and any Participant or Beneficiary. The Committee shall
administer such terms and provisions in a uniform and nondiscriminatory manner and in full
accordance with any and all laws applicable to the Plan.

          7.5 Information.

     To enable the Committee to perform its functions, the Company shall supply full and timely
information to the Committee on all matters relating to the Compensation of all Participants, their
death or other events, which cause termination of their participation in this Plan, and such other
pertinent facts as the Committee may require.

          7.6 Compensation, Expenses and Indemnity.

               (a) The members of the Committee shall serve without compensation for their services
hereunder.

19

 

               (b) The Committee is authorized at the expense of the Company to employ such legal counsel, as
it may deem advisable, to assist in the performance of its duties hereunder. Expenses and fees in
connection with the administration of the Plan shall be paid by the Company.

               (c) To the extent permitted by applicable state law, the Company shall indemnify and hold
harmless the Committee and each member thereof, the Board of Directors and any delegate of the
Committee who is an employee of the Company against any and all expenses, liabilities and claims,
including legal fees to defend against such liabilities and claims arising out of their discharge
in good faith of responsibilities under or incident to the Plan, other than expenses and
liabilities arising out of willful misconduct. This indemnity shall not preclude such further
indemnities as may be available under insurance purchased by the Company or provided by the Company
under any bylaw, agreement or otherwise, as such indemnities are permitted under state law.

          7.7 Quarterly Statements; Delegation of Administrative Functions.

               (a) Under procedures established by the Committee, a statement shall be made available to
Participants with respect to such Participant’s Accounts on a quarterly basis.

               (b) The Committee may delegate administrative duties under the Plan to any one or more persons
or companies selected by the Committee.

          7.8 Disputes.

               (a) Claim. A person who believes that he or she is being denied a benefit to which he
or she is entitled under this Plan (hereinafter referred to as “Claimant”) must file a written
request for such benefit with the Company, setting forth his or her claim. The request must be
addressed to the President of the Company at its then principal place of business.

               (b) Claim Decision. Upon receipt of a claim, the Company shall advise the Claimant
that a reply will be forthcoming within ninety (90) days and shall, in fact, deliver such reply
within such period. The Company may, however, extend the reply period for an additional ninety (90)
days for special circumstances.

               If the claim is denied in whole or in part, the Company shall inform the Claimant in writing,
using language calculated to be understood by the Claimant, setting forth: (A) the specified reason
or reasons for such denial; (B) the specific reference to pertinent provisions of this Plan on
which such denial is based; (C) a description of any additional material or information necessary
for the Claimant to perfect his or her claim and an explanation of why such material or such
information is necessary; (D) appropriate information as to the steps to be taken if the Claimant
wishes to submit the claim for review; and (E) the time limits for requesting a review under
subsection (c).

               (c) Request for Review. Within sixty (60) days after the receipt by the Claimant of
the written opinion described above, the Claimant may request in writing that the Committee review
the determination of the Company. Such request must be addressed to the Secretary of the Company,
at its then principal place of business. The Claimant or his or her duly

20

 

authorized representative
may, but need not, review the pertinent documents and submit issues
and comments in writing for consideration by the Committee. If the Claimant does not request a
review within such sixty (60) day period, he or she shall be barred and estopped from challenging
the Company’s determination.

               (d) Review of Decision. Within sixty (60) days after the Committee’s receipt of a
request for review, after considering all materials presented by the Claimant, the Committee will
inform the Participant in writing, in a manner calculated to be understood by the Claimant, the
decision setting forth the specific reasons for the decision containing specific references to the
pertinent provisions of this Plan on which the decision is based. If special circumstances require
that the sixty (60) day time period be extended, the Committee will so notify the Claimant and will
render the decision as soon as possible, but no later than one hundred twenty (120) days after
receipt of the request for review.

               (e) Legal Action. A Claimant’s compliance with the foregoing provisions of this
Article VII is a mandatory prerequisite to a Claimant’s right to commence any legal action with
respect to any claim for benefits under this Plan.

ARTICLE VIII

MISCELLANEOUS

          8.1 Unsecured General Creditor.

     Participants and their Beneficiaries, heirs, successors, and assigns shall have no legal or
equitable rights, claims, or interest in any specific property or assets of the Company. No assets
of the Company shall be held in any way as collateral security for the fulfilling of the
obligations of the Company under this Plan. Any and all of the Company’s assets shall be, and
remain, the general unpledged, unrestricted assets of the Company. The Company’s obligation under
the Plan shall be merely that of an unfunded and unsecured promise of the Company to pay money in
the future, and the rights of the Participants and Beneficiaries shall be no greater than those of
unsecured general creditors. It is the intention of the Company that this Plan be unfunded for
purposes of the Code and for purposes of Title 1 of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”).

          8.2 Insurance Contracts or Policies.

     Amounts payable hereunder may be provided through insurance contracts or policies, the
premiums for which are paid by the Company from its general assets, and which contracts or policies
are issued by an insurance company or similar organization. In order to become a Participant under
the Plan, an Eligible Participant may be required to complete such insurance application forms and
insurance application worksheets as requested by the Committee in connection with the acquisition
of any such insurance contract or policy.

          8.3 Restriction Against Assignment.

     The Company shall pay all amounts payable hereunder only to the person or persons designated
by the Plan and not to any other person or corporation. Except for payments to an Alternate Payee
pursuant to a Domestic Relations Order, no part of a Participant’s Accounts

21

 

shall be liable for the
debts, contracts, or engagements of any Participant, his or her Beneficiary, or successors in
interest, nor shall a Participant’s Accounts be subject to execution by levy, attachment, or
garnishment or by any other legal or equitable proceeding, nor shall any such person have any right
to alienate, anticipate, sell, transfer, commute, pledge, encumber, or assign any benefits or
payments hereunder in any manner whatsoever. If any Participant, Beneficiary or successor in
interest is adjudicated bankrupt or purports to anticipate, alienate, sell, transfer, commute,
assign, pledge, encumber or charge any distribution or payment from the Plan, voluntarily or
involuntarily, the Committee, in its discretion, may cancel such distribution or payment (or any
part thereof) to or for the benefit of such Participant, Beneficiary or successor in interest in
such manner as the Committee shall direct.

          8.4 Withholding.

     There shall be deducted from each payment made under the Plan or any other Compensation
payable to the Participant (or Beneficiary) all taxes, which are required to be withheld by the
Company in respect to such payment or this Plan. The Company shall have the right to reduce any
payment (or compensation) by the amount of cash sufficient to provide the amount of said taxes.

          8.5 Amendment, Modification, Suspension or Termination.

               (a) Power to Amend. The Committee may amend, modify or suspend the Plan in whole or in
part to the full extent permitted by and in accordance with Section 409A and the Regulations
promulgated thererunder, except that no amendment, modification or suspension shall have any
retroactive effect to reduce any amounts allocated to a Participant’s Accounts.

               (b) Power to Terminate. The Plan may be terminated by the Company under one of the
following conditions:

                    (1) The Company may terminate the Plan at its sole discretion, provided that:

               (A) All arrangements sponsored by the Company that would be aggregated with this Plan
under section 1.409A-1(c)(2) of the Regulations are terminated with respect to all
Participants;

               (B) No payments will be made, other than those otherwise payable under the terms of the
Plan absent a Plan termination, within twelve (12) months of the termination of the Plan;

               (C) All payments will be made within twenty-four (24) months of such termination;

               (D) The Company does not adopt a new arrangement that would be aggregated with any
terminated arrangement under Section 409A and the Regulations

22

 

thereunder at any time within
the three year period following the date of termination of the Plan, and

               (E) The termination does not occur proximate to a downturn in the financial health of
the Company.

                    (2) The Company, at its discretion, may terminate the Plan within twelve (12) months of a
corporate dissolution taxed under section 331 of the Code, or with the approval of a bankruptcy
court pursuant to 11 U.S.C. §503(b)(1)(A), provided that amounts deferred under the Plan are
included in the gross income of Participants in the latest of the following years (or, if earlier,
the taxable year in which the amount is actually or constructively received):

               (A) The calendar year in which the Plan termination occurs;

               (B) The calendar year in which the amount is no longer subject to a substantial risk of
forfeiture; or

               (C) The first calendar year in which the payment is administratively practicable.

                    (3) The Company, at its discretion, may terminate the Plan pursuant to irrevocable action
taken by the Company within the thirty (30) days preceding or the twelve (12) months following a
Change in Control, provided:

               (A) All agreements, methods, programs and other arrangements sponsored by the Company
(or its successor) immediately after the Change in Control which are treated as a single
plan under section 1.409A-1(c)(2) of the Regulation are also terminated;

               (B) All payments to Participants are made within twelve (12) months of the date of Plan
termination; and

               (C) All participants under the other terminated similar arrangements described in
clause (A) are required to receive all amounts of deferred compensation within twelve (12)
months of the action taken by the Company (or its successor) to terminate such arrangements.

                    (4) The Company may amend the Plan to provide that termination of the Plan will occur under
such conditions and events as may be prescribed by the Secretary of the Treasury in generally
applicable guidance published in the Internal Revenue Bulletin.

23

 

               (c) A Plan termination shall not have any retroactive effect to reduce any amounts allocated
to a Participant’s Accounts. In the event that this Plan is terminated, the amounts allocated to a
Participant’s Accounts shall be distributed in a lump sum in accordance with the prior provisions
of this Section 8.5(b).

          8.6 Governing Law.

     This Plan shall be construed, governed and administered in accordance with the laws of the
State of Tennessee, except where pre-empted by federal law.

          8.7 Section 409A.

     The Plan is intended to conform with the requirements of Section 409A and the Regulations
issued thereunder and shall be implemented and administered in a manner consistent therewith.

          8.8 Receipt or Release. Any payment to a Participant or the Participant’s Beneficiary in
accordance with the provisions of the Plan shall, to the extent thereof, be in full satisfaction of
all claims against the Committee and the Company.

          8.9 Payments on Behalf of Persons Under Incapacity.

     In the event that any amount becomes payable under the Plan to a person who, in the sole
judgment of the Committee, is considered by reason of physical or mental condition to be unable to
give a valid receipt therefore, the Committee may direct that such payment be made to any person
found by the Committee, in its sole judgment, to have assumed the care of such person. Any payment
made pursuant to such determination shall constitute a full release and discharge of the Committee
and the Company.

          8.10 Limitation of Rights and Employment Relationship.

     Neither the establishment of the Plan nor any modification thereof, nor the creating of any
fund or account, nor the payment of any benefits shall be construed as giving to any Participant,
or Beneficiary or other person any legal or equitable right against the Company or any Affiliate
except as provided in the Plan; and in no event shall the terms of employment of any Employee or
Participant be modified or in any way be affected by the provisions of the Plan.

          8.11 Headings.

     Headings and subheadings in this Plan are inserted for convenience of reference only and are
not to be considered in the construction of the provisions hereof.

24

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