Document:

exv10w3

 

Exhibit 10.3

$150,000,000

WCA WASTE CORPORATION

9.25% Senior Notes due 2014

REGISTRATION RIGHTS AGREEMENT

July 5, 2006

Credit Suisse Securities (USA) LLC,

   Eleven Madison Avenue

   New York, New York 10010-3629

Dear Sirs:

     WCA Waste Corporation, a Delaware corporation (the “Company”), proposes to issue and sell to
Credit Suisse Securities (USA) LLC (the “Initial Purchaser”), upon the terms set forth in a
purchase agreement of even date herewith (the “Purchase Agreement”), $ 150,000,000 aggregate
principal amount of its 9.25% Senior Notes due 2014 (the “Initial Securities”) to be
unconditionally guaranteed (the “Guaranties”) by all current and future domestic restricted
subsidiaries as set forth in Schedule A (the “Guarantors”). The Initial Securities will be issued
pursuant to an Indenture, dated as of July 5, 2006, (the “Indenture”) among the Company, the
Guarantors and The Bank of New York Trust Company, N.A. (the “Trustee”). As an inducement to the
Initial Purchaser, the Company and the Guarantors agree with the Initial Purchaser, for the benefit
of the holders of the Initial Securities (including, without limitation, the Initial Purchaser),
the Exchange Securities (as defined below) and the Private Exchange Securities (as defined below)
(collectively the “Holders”), as follows:

     1. Registered Exchange Offer. The Company and the Guarantors shall, at their own cost, use
commercially reasonable efforts to file with the Securities and Exchange Commission (the
“Commission”) a registration statement (the “Exchange Offer Registration Statement”) on an
appropriate form under the Securities Act of 1933, as amended (the “Securities Act”), with respect
to a proposed offer (the “Registered Exchange Offer”) to the Holders of Transfer Restricted
Securities (as defined in Section 6 hereof), who are not prohibited by any law or policy of the
Commission from participating in the Registered Exchange Offer, to issue and deliver to such
Holders, in exchange for the Initial Securities, a like aggregate principal amount of debt
securities (the “Exchange Securities”) of the Company issued under the Indenture and identical in
all material respects to the Initial Securities (except for the transfer restrictions relating to

 

 

the Initial Securities and the provisions relating to the matters described in Section 6 hereof)
that would be registered under the Securities Act. The Company and the Guarantors shall use all
commercially reasonable efforts to cause such Exchange Offer Registration Statement to become
effective under the Securities Act within 225 days (or if the 225th day is not a business day, the
first business day thereafter) after the date of original issue of the Initial Securities (the
“Issue Date”) and shall keep the Exchange Offer Registration Statement effective for not less than
30 business days (or longer, if required by applicable law) after the date notice of the Registered
Exchange Offer is mailed to the Holders (such period being called the “Exchange Offer Registration
Period”).

     If the Company and the Guarantors effect the Registered Exchange Offer, the Company and the
Guarantors will close the Registered Exchange Offer and issue the Exchange Securities for all of
the Initial Securities theretofore validly tendered in accordance with the terms of the Registered
Exchange Offer on or prior to 30 business days after the commencement thereof (or longer, if
required by applicable law).

     Following the declaration of the effectiveness of the Exchange Offer Registration Statement,
the Company and the Guarantors shall promptly commence the Registered Exchange Offer, it being the
objective of such Registered Exchange Offer to enable each Holder of Transfer Restricted Securities
(as defined in Section 6 hereof) electing to exchange the Initial Securities for Exchange
Securities (assuming that such Holder is not an affiliate of the Company within the meaning of the
Securities Act, acquires the Exchange Securities in the ordinary course of such Holder’s business
and has no arrangements with any person to participate in the distribution of the Exchange
Securities and is not prohibited by any law or policy of the Commission from participating in the
Registered Exchange Offer) to trade such Exchange Securities from and after their receipt without
any limitations or restrictions under the Securities Act and without material restrictions under
the securities laws of the several states of the United States.

     The Company and the Guarantors acknowledge that, pursuant to current interpretations by the
Commission’s staff of Section 5 of the Securities Act, in the absence of an applicable exemption
therefrom, (i) each Holder which is a broker-dealer electing to exchange Securities, acquired for
its own account as a result of market making activities or other trading activities, for Exchange
Securities (an “Exchanging Dealer”), is required to deliver a prospectus containing the information
set forth in (a) Annex A hereto on the cover, (b) Annex B hereto in the “Exchange Offer Procedures”
section and the “Purpose of the Exchange Offer” section, and (c) Annex C hereto in the “Plan of
Distribution” section of such prospectus in connection with a sale of any such Exchange Securities
received by such Exchanging Dealer pursuant to the Registered Exchange Offer and (ii) the Initial
Purchaser that elects to sell Exchange Securities acquired in exchange for Securities constituting
any portion of an unsold allotment is required to

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deliver a prospectus containing the information required by Item 507 or 508 of Regulation S-K under
the Securities Act, as applicable, in connection with such sale.

     The Company and the Guarantors shall use their commercially reasonable efforts to keep the
Exchange Offer Registration Statement effective and to amend and supplement the prospectus
contained therein, in order to permit such prospectus to be lawfully delivered by all persons
subject to the prospectus delivery requirements of the Securities Act for such period of time as
such persons must comply with such requirements in order to resell the Exchange Securities;
provided, however, that (i) in the case where such prospectus and any amendment or supplement
thereto must be delivered by an Exchanging Dealer or the Initial Purchaser, such period shall be
the lesser of 180 days and the date on which all Exchanging Dealers and the Initial Purchaser has
sold all Exchange Securities held by them (unless such period is extended pursuant to Section 3(j)
below) and (ii) the Company and the Guarantors shall make such prospectus and any amendment or
supplement thereto available to any broker-dealer for use in connection with any resale of any
Exchange Securities for a period of not less than 90 days after the consummation of the Registered
Exchange Offer.

     If, upon consummation of the Registered Exchange Offer, the Initial Purchaser holds Initial
Securities acquired by it as part of its initial distribution, the Company and the Guarantors,
simultaneously with the delivery of the Exchange Securities pursuant to the Registered Exchange
Offer, shall issue and deliver to the Initial Purchaser upon the written request of the Initial
Purchaser, in exchange (the “Private Exchange”) for the Initial Securities held by the Initial
Purchaser, a like principal amount of debt securities of the Company issued under the Indenture and
identical in all material respects (including the existence of restrictions on transfer under the
Securities Act and the securities laws of the several states of the United States, but excluding
provisions relating to the matters described in Section 6 hereof) to the Initial Securities (the
“Private Exchange Securities”). The Initial Securities, the Exchange Securities and the Private
Exchange Securities are herein collectively called the “Securities”.

     In connection with the Registered Exchange Offer, the Company and the Guarantors shall:

     (a) mail to each Holder a copy of the prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and related
documents;

     (b) keep the Registered Exchange Offer open for not less than 30 days (or longer, if
required by applicable law) after the date notice thereof is mailed to the Holders;

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     (c) utilize the services of a depositary for the Registered Exchange Offer with an
address in the Borough of Manhattan, The City of New York, which may be the Trustee or an
affiliate of the Trustee;

     (d) permit Holders to withdraw tendered Securities at any time prior to the close of
business, New York time, on the last business day on which the Registered Exchange Offer
shall remain open; and

     (e) otherwise comply with all applicable laws.

     As soon as practicable after the close of the Registered Exchange Offer or the Private
Exchange, as the case may be, the Company and the Guarantors shall:

     (x) accept for exchange all of the Securities validly tendered and not withdrawn
pursuant to the Registered Exchange Offer and the Private Exchange;

     (y) deliver to the Trustee for cancellation all of the Initial Securities so accepted
for exchange; and

     (z) cause the Trustee to authenticate and deliver promptly to each Holder of the
Initial Securities, Exchange Securities or Private Exchange Securities, as the case may be,
equal in principal amount to the Initial Securities of such Holder so accepted for
exchange.

     The Indenture will provide that the Exchange Securities will not be subject to the transfer
restrictions set forth in the Indenture and that all of the Securities will vote and consent
together on all matters as one class and that none of the Securities will have the right to vote or
consent as a class separate from one another on any matter.

     Interest on each Exchange Security and Private Exchange Security issued pursuant to the
Registered Exchange Offer and in the Private Exchange will accrue from the last interest payment
date on which interest was paid on the Initial Securities surrendered in exchange therefor or, if
no interest has been paid on the Initial Securities, from the date of original issue of the Initial
Securities.

     Each Holder participating in the Registered Exchange Offer shall be required to represent to
the Company that at the time of the consummation of the Registered Exchange Offer (i) any Exchange
Securities received by such Holder will be acquired in the ordinary course of business, (ii) such
Holder will have no arrangement or understanding with any person to participate in the distribution
of the Securities or the Exchange Securities within the meaning of the Securities Act, (iii) such
Holder is not an “affiliate,” as defined in Rule 405 under the Securities Act, of the Company or if
it is an

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affiliate, such Holder will comply with the registration and prospectus delivery requirements of
the Securities Act to the extent applicable, (iv) if such Holder is not a broker-dealer, that it is
not engaged in, and does not intend to engage in, the distribution of the Exchange Securities and
(v) if such Holder is a broker-dealer, that it will receive Exchange Securities for its own account
in exchange for Initial Securities that were acquired as a result of market-making activities or
other trading activities and that it will be required to acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities.

     Notwithstanding any other provisions hereof, the Company and the Guarantors will ensure that
(i) any Exchange Offer Registration Statement and any amendment thereto and any prospectus forming
part thereof and any supplement thereto complies in all material respects with the Securities Act
and the rules and regulations thereunder, (ii) any Exchange Offer Registration Statement and any
amendment thereto does not, when it becomes effective, contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading and (iii) any prospectus forming part of any Exchange Offer
Registration Statement, and any supplement to such prospectus, does not include an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading.

     2. Shelf Registration. If, (i) because of any change in law or in applicable interpretations
thereof by the staff of the Commission, the Company or any Guarantor is not permitted to effect a
Registered Exchange Offer, as contemplated by Section 1 hereof, (ii) the Registered Exchange Offer
is not consummated within 225 days after the Issue Date or (iii) any Holder of Transfer Restricted
Securities notifies the Company prior to the 20th business day following consummation of
the Registered Exchange Offer that (A) it is prohibited by applicable law or Commission policy from
participating in the Registered Exchange Offer , (B) it may not resell the Exchange Securities
acquired by it in the Registered Exchange Offer to the public without delivering a prospectus and
the prospectus contained in the Exchange Offer Registration Statement is not appropriate or
available for such resales, or (C) it is a broker-dealer and owns Initial Securities acquired
directly from the Company or an affiliate of the Company, the Company and the Guarantors shall take
the following actions:

     (a) The Company and the Guarantors shall, at their cost, as promptly as practicable
(but in no event more than 90 days after so required or requested pursuant to this Section
2) use commercially reasonable efforts to file with the Commission and thereafter shall use
its commercially reasonable efforts to cause to be declared effective within 225 days after
so required or requested pursuant to this Section 2 (unless it becomes effective
automatically upon filing) a

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registration statement (the “Shelf Registration Statement” and, together with the Exchange
Offer Registration Statement, a “Registration Statement”) on an appropriate form under the
Securities Act relating to the offer and sale of the Transfer Restricted Securities (as
defined in Section 6 hereof) by the Holders thereof from time to time in accordance with
the methods of distribution set forth in the Shelf Registration Statement and Rule 415
under the Securities Act (hereinafter, the “Shelf Registration”); provided, however, that
no Holder (other than the Initial Purchaser) shall be entitled to have the Securities held
by it covered by such Shelf Registration Statement unless such Holder agrees in writing to
be bound by all of the provisions of this Agreement applicable to such Holder.

     (b) The Company and the Guarantors shall use their commercially reasonable efforts to
keep the Shelf Registration Statement continuously effective in order to permit the
prospectus included therein to be lawfully delivered by the Holders of the relevant
Securities, for a period of two years (or for such longer period if extended pursuant to
Section 3(j) below) from the Issue Date or such shorter period that will terminate when all
of the Securities covered by the Shelf Registration Statement (i) have been sold pursuant
thereto or (ii) are no longer restricted securities (as defined in Rule 144 under the
Securities Act, or any successor rule thereof) (such period being called the “Shelf
Registration Period”).

     (c) Notwithstanding any other provisions of this Agreement to the contrary, the
Company and the Guarantors shall cause the Shelf Registration Statement and the related
prospectus and any amendment or supplement thereto, as of the effective date of the Shelf
Registration Statement, amendment or supplement, (i) to comply in all material respects
with the applicable requirements of the Securities Act and the rules and regulations of the
Commission and (ii) not to contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading.

     3. Registration Procedures. In connection with any Shelf Registration contemplated by
Section 2 hereof and, to the extent applicable, any Registered Exchange Offer contemplated by
Section 1 hereof, the following provisions shall apply:

     (a) The Company and the Guarantors shall (i) furnish to the Initial Purchaser, prior
to the filing thereof with the Commission, a copy of the Registration Statement and each
amendment thereof and each supplement, if any, to the prospectus included therein and, in
the event that the Initial Purchaser (with respect to any portion of an unsold allotment
from the original offering) is

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participating in the Registered Exchange Offer or the Shelf Registration Statement, the
Company and the Guarantors shall use their commercially reasonable efforts to reflect in
each such document, when so filed with the Commission, such comments as the Initial
Purchaser reasonably may propose, which are received by the Company within 5 days after the
receipt of such document; (ii) include the information substantially in the form set forth
in Annex A hereto on the cover, in Annex B hereto in the “Exchange Offer Procedures”
section and the “Purpose of the Exchange Offer” section and in Annex C hereto in the “Plan
of Distribution” section of the prospectus forming a part of the Exchange Offer
Registration Statement and include the information set forth in Annex D hereto in the
Letter of Transmittal delivered pursuant to the Registered Exchange Offer; (iii) if
requested by the Initial Purchaser, include the information required by Items 507 or 508 of
Regulation S-K under the Securities Act, as applicable, in the prospectus forming a part of
the Exchange Offer Registration Statement; (iv) include within the prospectus contained in
the Exchange Offer Registration Statement a section entitled “Plan of Distribution,”
reasonably acceptable to the Initial Purchaser, which shall contain a summary statement of
the positions taken or policies made by the staff of the Commission with respect to the
potential “underwriter” status of any broker-dealer that is the beneficial owner (as
defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) of Exchange Securities received by such broker-dealer in the Registered Exchange
Offer (a “Participating Broker-Dealer”), whether such positions or policies have been
publicly disseminated by the staff of the Commission or such positions or policies, in the
reasonable judgment of the Initial Purchaser based upon advice of counsel (which may be
in-house counsel), represent the prevailing views of the staff of the Commission; and (v)
in the case of a Shelf Registration Statement, include in the prospectus included in the
Shelf Registration Statement (or, if permitted by Rule 430B(b) under the Securities Act, in
a prospectus supplement that becomes a part thereof pursuant to Rule 430B(f) under the
Securities Act) that is delivered to any Holder pursuant to Sections 3(d) and (f), the
names of the Holders who propose to sell Securities pursuant to the Shelf Registration
Statement, as selling securityholders.

     (b) The Company and the Guarantors shall give written notice to the Initial
Purchaser, the Holders of the Securities and any Participating Broker-Dealer from whom the
Company has received prior written notice that it will be a Participating Broker-Dealer in
the Registered Exchange Offer (which notice pursuant to clauses (ii)-(v) hereof shall be
accompanied by an instruction to suspend the use of the prospectus until the requisite
changes have been made):

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     (i) when the Registration Statement or any amendment thereto has been filed
with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective;

     (ii) of any request by the Commission for amendments or supplements to the
Registration Statement or the prospectus included therein or for additional
information;

     (iii) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or the initiation of any proceedings
for that purpose, of the issuance by the Commission of a notification of objection
to the use of the form on which the Registration Statement has been filed, and of
the happening of any event that causes the Company to become an “ineligible
issuer,” as defined in Rule 405 under the Securities Act.

     (iv) of the receipt by the Company or its legal counsel of any notification
with respect to the suspension of the qualification of the Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

     (v) of the happening of any event that requires the Company to make changes
in the Registration Statement or the prospectus in order that the Registration
Statement or the prospectus do not contain an untrue statement of a material fact
nor omit to state a material fact required to be stated therein or necessary to
make the statements therein (in the case of the prospectus, in light of the
circumstances under which they were made) not misleading.

     (c) The Company and the Guarantors shall use commercially reasonable efforts to
obtain the withdrawal at the earliest possible time, of any order suspending the
effectiveness of the Registration Statement.

     (d) The Company and the Guarantors shall furnish to each Holder of Securities named
in the Shelf Registration, without charge, at least one copy of the Shelf Registration
Statement and any post-effective amendment or supplement thereto, including financial
statements and schedules, and, if the Holder so requests in writing, all exhibits thereto
(including those, if any, incorporated by reference). The Company and the Guarantors shall
not, without the prior consent of the Initial Purchaser, make any offer relating to the
Securities that would constitute a “free writing prospectus,” as defined in Rule 405 under
the Securities Act.

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     (e) The Company and the Guarantors shall deliver to each Exchanging Dealer and the
Initial Purchaser, and to any other Holder who so requests, without charge, at least one
copy of the Exchange Offer Registration Statement and any post-effective amendment thereto,
including financial statements and schedules, and, if the Initial Purchaser or any such
Holder requests, all exhibits thereto (including those incorporated by reference).

     (f) The Company and the Guarantors shall, during the Shelf Registration Period,
deliver to each Holder of Securities included within the coverage of the Shelf
Registration, without charge, as many copies of the prospectus (including each preliminary
prospectus) included in the Shelf Registration Statement and any amendment or supplement
thereto as such person may reasonably request. The Company and the Guarantors consent,
subject to the provisions of this Agreement, to the use of the prospectus or any amendment
or supplement thereto by each of the selling Holders of the Securities in connection with
the offering and sale of the Securities covered by the prospectus, or any amendment or
supplement thereto, included in the Shelf Registration Statement.

     (g) The Company and the Guarantors shall deliver to the Initial Purchaser, any
Exchanging Dealer, any Participating Broker-Dealer and such other persons required to
deliver a prospectus following the Registered Exchange Offer, without charge, as many
copies of the final prospectus included in the Exchange Offer Registration Statement and
any amendment or supplement thereto as such persons may reasonably request. The Company
and the Guarantors consent, subject to the provisions of this Agreement, to the use of the
prospectus or any amendment or supplement thereto by the Initial Purchaser, if necessary,
any Participating Broker-Dealer and such other persons required to deliver a prospectus
following the Registered Exchange Offer in connection with the offering and sale of the
Exchange Securities covered by the prospectus, or any amendment or supplement thereto,
included in such Exchange Offer Registration Statement.

     (h) Prior to any public offering of the Securities pursuant to any Registration
Statement, the Company and the Guarantors shall register or qualify or cooperate with the
Holders of the Securities included therein and their respective counsel in connection with
the registration or qualification of the Securities for offer and sale under the securities
or “blue sky” laws of such states of the United States as any Holder of the Securities
reasonably requests in writing and do any and all other acts or things reasonably necessary
or advisable to enable the offer and sale in such jurisdictions of the Securities covered
by such Registration Statement; provided, however, that the Company and the Guarantors
shall not be required to (i) qualify generally to do business in any jurisdiction

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where it is not then so qualified or (ii) take any action which would subject it to general
service of process or to taxation in any jurisdiction where it is not then so subject.

     (i) The Company and the Guarantors shall cooperate with the Holders of the Securities
to facilitate the timely preparation and delivery of certificates representing the
Securities to be sold pursuant to any Registration Statement free of any restrictive
legends and in such denominations and registered in such names as the Holders may request a
reasonable period of time prior to sales of the Securities pursuant to such Registration
Statement.

     (j) Upon the occurrence of any event contemplated by paragraphs (ii) through (v) of
Section 3(b) above during the period for which the Company and the Guarantors are required
to maintain an effective Registration Statement, the Company and the Guarantors shall
promptly prepare and file a post-effective amendment to the Registration Statement or a
supplement to the related prospectus and any other required document so that, as thereafter
delivered to Holders of the Securities or purchasers of Securities, the prospectus will not
contain an untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. If the Company notifies the
Initial Purchaser, the Holders of the Securities and any known Participating Broker-Dealer
in accordance with paragraphs (ii) through (v) of Section 3(b) above to suspend the use of
the prospectus until the requisite changes to the prospectus have been made, then the
Initial Purchaser, the Holders of the Securities and any such Participating Broker-Dealers
shall suspend use of such prospectus, and the period of effectiveness of the Shelf
Registration Statement provided for in Section 2(b) above and the Exchange Offer
Registration Statement provided for in Section 1 above shall each be extended by the number
of days from and including the date of the giving of such notice to and including the date
when the Initial Purchaser, the Holders of the Securities and any known Participating
Broker-Dealer shall have received such amended or supplemented prospectus pursuant to this
Section 3(j). During the period during which the Company and the Guarantors are required
to maintain an effective Shelf Registration Statement pursuant to this Agreement, the
Company and the Guarantors will prior to the three-year expiration of that Shelf
Registration Statement file, and use its commercially reasonable efforts to cause to be
declared effective (unless it becomes effective automatically upon filing) within a period
that avoids any interruption in the ability of Holders of Securities covered by the
expiring Shelf Registration Statement to make registered dispositions, a new registration
statement relating to the Securities, which shall be deemed the “Shelf Registration
Statement” for purposes of this Agreement.

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     (k) Not later than the effective date of the applicable Registration Statement, the
Company and the Guarantors will provide a CUSIP number for the Initial Securities, the
Exchange Securities or the Private Exchange Securities, as the case may be, and provide the
applicable trustee with printed certificates for the Initial Securities, the Exchange
Securities or the Private Exchange Securities, as the case may be, in a form eligible for
deposit with The Depository Trust Company.

     (l) The Company and the Guarantors will comply with all rules and regulations of the
Commission to the extent and so long as they are applicable to the Registered Exchange
Offer or the Shelf Registration and will make generally available to its security holders
(or otherwise provide in accordance with Section 11(a) of the Securities Act) an earnings
statement satisfying the provisions of Section 11(a) of the Securities Act, no later than
45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year)
beginning with the first month of the Company’s first fiscal quarter commencing after the
effective date of the Registration Statement, which statement shall cover such 12-month
period.

     (m) The Company and the Guarantors shall cause the Indenture to be qualified under
the Trust Indenture Act of 1939, as amended, in a timely manner and containing such
changes, if any, as shall be necessary for such qualification. In the event that such
qualification would require the appointment of a new trustee under the Indenture, the
Company shall appoint a new trustee thereunder pursuant to the applicable provisions of the
Indenture.

     (n) The Company and the Guarantors may require each Holder of Securities to be sold
pursuant to the Shelf Registration Statement to furnish to the Company such information
regarding the Holder and the distribution of the Securities as the Company may from time to
time reasonably require for inclusion in the Shelf Registration Statement, and the Company
may exclude from such registration the Securities of any Holder that unreasonably fails to
furnish such information within a reasonable time after receiving such request.

     (o) The Company and the Guarantors shall enter into such customary agreements
(including, if requested, an underwriting agreement in customary form) and take all such
other action, if any, as any Holder of the Securities shall reasonably request in order to
facilitate the disposition of the Securities pursuant to any Shelf Registration.

     (p) In the case of any Shelf Registration, the Company and the Guarantors shall (i)
make reasonably available for inspection by the Holders of the Securities,

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any underwriter participating in any disposition pursuant to the Shelf Registration
Statement and any attorney, accountant or other agent retained by the Holders of the
Securities or any such underwriter all relevant financial and other records, pertinent
corporate documents and properties of the Company and the Guarantors and (ii) cause the
Company’s officers, directors, employees, accountants and auditors to supply all relevant
information reasonably requested by the Holders of the Securities or any such underwriter,
attorney, accountant or agent in connection with the Shelf Registration Statement, in each
case, as shall be reasonably necessary to enable such persons to conduct a reasonable
investigation within the meaning of Section 11 of the Securities Act; provided, however,
that the foregoing inspection and information gathering shall be coordinated on behalf of
the Initial Purchaser by the Initial Purchaser and on behalf of the other parties, by one
counsel designated by and on behalf of such other parties as described in Section 4 hereof.

     (q) In the case of any Shelf Registration, the Company and the Guarantors, if
requested by any Holder of Securities covered thereby, shall cause (i) its counsel to
deliver an opinion and updates thereof relating to the Securities substantially in the
forms provided pursuant to Sections 7(c) and (d) of the Purchase Agreement with such
changes as are customary in connection with the preparation of a Registration Statement
addressed to such Holders and the managing underwriters, if any, thereof and dated, in the
case of the initial opinion, the effective date of such Shelf Registration Statement, (ii)
its officers to execute and deliver all customary documents and certificates and updates
thereof requested by any underwriters of the applicable Securities, dated the date of the
closing of such offering of such Securities, and (iii) its independent public accountants
to provide to the selling Holders of the applicable Securities and any underwriter therefor
a comfort letter dated the date of the closing of such offering of such Securities, in
customary form and covering matters of the type customarily covered in comfort letters in
connection with primary underwritten offerings, subject to receipt of appropriate
documentation as contemplated, and only if permitted, by Statement of Auditing Standards
No. 72.

     (r) In the case of the Registered Exchange Offer, if requested by the Initial
Purchaser or any known Participating Broker-Dealer, the Company and the Guarantors shall
cause (i) their counsel to deliver to the Initial Purchaser or such Participating
Broker-Dealer a signed opinion substantially in the forms provided pursuant to Sections
7(c) and (d) of the Purchase Agreement with such changes as are customary in connection
with the preparation of a Registration Statement and (ii) their independent public
accountants to deliver to the Initial Purchaser or such Participating Broker-Dealer a
comfort letter, in customary form, meeting the

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requirements as to the substance thereof as set forth in Section 7(a) of the Purchase
Agreement, with appropriate date changes.

     (s) If a Registered Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Initial Securities by Holders to the Company (or to such other Person as
directed by the Company) in exchange for the Exchange Securities or the Private Exchange
Securities, as the case may be, the Company and the Guarantors shall mark, or caused to be
marked, on the Initial Securities so exchanged that such Initial Securities are being
canceled in exchange for the Exchange Securities or the Private Exchange Securities, as the
case may be; in no event shall the Initial Securities be marked as paid or otherwise
satisfied.

     (t) The Company and the Guarantors will use their commercially reasonable efforts to
(a) if the Initial Securities have been rated prior to the initial sale of such Initial
Securities, confirm such ratings will apply to the Securities covered by a Registration
Statement, or (b) if the Initial Securities were not previously rated, cause the Securities
covered by a Registration Statement to be rated with the appropriate rating agencies, if so
requested by Holders of a majority in aggregate principal amount of Securities covered by
such Registration Statement, or by the managing underwriters, if any.

     (u) In the event that any broker-dealer registered under the Exchange Act shall
underwrite any Securities or participate as a member of an underwriting syndicate or
selling group or “assist in the distribution” (within the meaning of the Conduct Rules (the
“Rules”) of the National Association of Securities Dealers, Inc. (“NASD”)) thereof, whether
as a Holder of such Securities or as an underwriter, a placement or sales agent or a broker
or dealer in respect thereof, or otherwise, the Company and the Guarantors will assist such
broker-dealer in complying with the requirements of such Rules, including, without
limitation, by (i) if such Rules, including Rule 2720, shall so require, engaging a
“qualified independent underwriter” (as defined in Rule 2720) to participate in the
preparation of the Registration Statement relating to such Securities, to exercise usual
standards of due diligence in respect thereto and, if any portion of the offering
contemplated by such Registration Statement is an underwritten offering or is made through
a placement or sales agent, to recommend the yield of such Securities, (ii) indemnifying
any such qualified independent underwriter to the extent of the indemnification of
underwriters provided in Section 5 hereof and (iii) providing such information to such
broker-dealer as may be required in order for such broker-dealer to comply with the
requirements of the Rules.

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     (v) The Company and the Guarantors shall use their commercially reasonable efforts to
take all other steps necessary to effect the registration of the Securities covered by a
Registration Statement contemplated hereby.

     4. Registration Expenses. The Company and the Guarantors shall bear all fees and expenses
incurred in connection with the performance of its obligations under Sections 1 through 3 hereof
(including the reasonable fees and expenses, if any, of Latham & Watkins LLP, counsel for the
Initial Purchaser, incurred in connection with the Registered Exchange Offer), whether or not the
Registered Exchange Offer or a Shelf Registration is filed or becomes effective, and, in the event
of a Shelf Registration, shall bear or reimburse the Holders of the Securities covered thereby for
the reasonable fees and disbursements of one firm of counsel designated by the Holders of a
majority in principal amount of the Initial Securities covered thereby to act as counsel for the
Holders of the Initial Securities in connection therewith.

     5. Indemnification. (a) The Company and the Guarantors agree to indemnify and hold harmless
each Holder of the Securities, any Participating Broker-Dealer and each person, if any, who
controls such Holder or such Participating Broker-Dealer within the meaning of the Securities Act
or the Exchange Act (each Holder, any Participating Broker-Dealer and such controlling persons are
referred to collectively as the “Indemnified Parties”) from and against any losses, claims, damages
or liabilities, joint or several, or any actions in respect thereof (including, but not limited to,
any losses, claims, damages, liabilities or actions relating to purchases and sales of the
Securities) to which each Indemnified Party may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise
out of or are based upon any untrue statement or alleged untrue statement of a material fact
contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in
any preliminary prospectus or “issuer free writing prospectus,” as defined in Rule 433 under the
Securities Act (an “Issuer FWP”), relating to a Shelf Registration, or arise out of, or are based
upon, the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and shall reimburse, as
incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage, liability or action in
respect thereof; provided, however, that (i) the Company and the Guarantors shall not be liable in
any such case to the extent that such loss, claim, damage or liability arises out of or is based
upon any untrue statement or alleged untrue statement or omission or alleged omission made in a
Registration Statement or prospectus or in any amendment or supplement thereto or in any
preliminary prospectus or Issuer FWP relating to a Shelf Registration in reliance upon and in
conformity with written information pertaining to such Holder and furnished to the Company or any
Guarantor by or on behalf of such Holder specifically for inclusion therein and (ii) with respect
to any untrue statement or omission or alleged

14

 

untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration
Statement, the indemnity agreement contained in this subsection (a) shall not inure to the benefit
of any Holder or Participating Broker-Dealer from whom the person asserting any such losses,
claims, damages or liabilities purchased the Securities concerned, to the extent that a prospectus
relating to such Securities was required to be delivered (including through satisfaction of the
conditions of Rule 172 under the Securities Act) by such Holder or Participating Broker-Dealer
under the Securities Act in connection with such purchase and any such loss, claim, damage or
liability of such Holder or Participating Broker-Dealer results from the fact that there was not
conveyed to such person, at or prior to the time of the sale of such Securities to such person, an
amended or supplemented prospectus or, if permitted by Section 3(d), an Issuer FWP correcting such
untrue statement or omission or alleged untrue statement or omission if the Company or any
Guarantor had previously furnished copies thereof to such Holder or Participating Broker-Dealer;
provided further, however, that this indemnity agreement will be in addition to any liability which
the Company or any Guarantor may otherwise have to such Indemnified Party. The Company and the
Guarantors shall also indemnify underwriters, their officers and directors and each person who
controls such underwriters within the meaning of the Securities Act or the Exchange Act to the same
extent as provided above with respect to the indemnification of the Holders of the Securities if
requested by such Holders.

     (b) Each Holder of the Securities, severally and not jointly, will indemnify and hold
harmless the Company and each Guarantor, their directors and officers and each person, if any, who
controls the Company or any Guarantor within the meaning of the Securities Act or the Exchange Act
from and against any losses, claims, damages or liabilities or any actions in respect thereof, to
which the Company or any Guarantor or any such controlling person may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities
or actions arise out of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in a Registration Statement or prospectus or in any amendment or supplement
thereto or in any preliminary prospectus or Issuer FWP relating to a Shelf Registration, or arise
out of or are based upon the omission or alleged omission to state therein a material fact
necessary to make the statements therein not misleading, but in each case only to the extent that
the untrue statement or omission or alleged untrue statement or omission was made in reliance upon
and in conformity with written information pertaining to such Holder and furnished to the Company
or any Guarantor by or on behalf of such Holder specifically for inclusion therein; and, subject to
the limitation set forth immediately preceding this clause, shall reimburse, as incurred, the
Company and the Guarantors for any legal or other expenses reasonably incurred by the Company and
each Guarantor, their directors and officers or any such controlling person in connection with
investigating or defending any loss, claim, damage, liability or action in respect thereof. This

15

 

indemnity agreement will be in addition to any liability which such Holder may otherwise have to
the Company or any of its controlling persons.

     (c) Promptly after receipt by an indemnified party under this Section 5 of notice of the
commencement of any action or proceeding (including a governmental investigation), such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party under this
Section 5, notify the indemnifying party of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve the indemnifying party from any liability that it may have
under subsection (a) or (b) above except to the extent that it has been materially prejudiced
(through the forfeiture of substantive rights or defenses) by such failure; and provided further
that the failure to notify the indemnifying party shall not relieve it from any liability that it
may have to an indemnified party otherwise than under subsection (a) or (b) above. In case any
such action is brought against any indemnified party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate therein and, to the
extent that it may wish, jointly with any other indemnifying party similarly notified, to assume
the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the indemnifying party), and after
notice from the indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not be liable to such indemnified party under this
Section 5 for any legal or other expenses, other than reasonable costs of investigation,
subsequently incurred by such indemnified party in connection with the defense thereof. No
indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened action in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such indemnified party
unless such settlement (i) includes an unconditional release of such indemnified party from all
liability on any claims that are the subject matter of such action, and (ii) does not include a
statement as to, or an admission of fault, culpability or a failure to act by or on behalf of, any
indemnified party.

     (d) If the indemnification provided for in this Section 5 is unavailable or insufficient to
hold harmless an indemnified party under subsections (a) or (b) above, then each indemnifying party
shall contribute to the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to in subsection (a) or (b)
above (i) in such proportion as is appropriate to reflect the relative benefits received by the
indemnifying party or parties on the one hand and the indemnified party on the other from the
exchange of the Securities, pursuant to the Registered Exchange Offer, or (ii) if the allocation
provided by the foregoing clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) above but also the
relative fault of the indemnifying party or parties on the one hand and the indemnified

16

 

party on the other in connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities (or actions in respect thereof) as well as any other relevant
equitable considerations. The relative fault of the parties shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Company or any Guarantor on the one hand or such Holder or such other indemnified party, as the
case may be, on the other, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The amount paid by an indemnified
party as a result of the losses, claims, damages or liabilities referred to in the first sentence
of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred
by such indemnified party in connection with investigating or defending any action or claim which
is the subject of this subsection (d). Notwithstanding any other provision of this Section 5(d),
the Holders of the Securities shall not be required to contribute any amount in excess of the
amount by which the net proceeds received by such Holders from the sale of the Securities pursuant
to a Registration Statement exceeds the amount of damages which such Holders have otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this paragraph (d), each person, if any, who
controls such indemnified party within the meaning of the Securities Act or the Exchange Act shall
have the same rights to contribution as such indemnified party and each person, if any, who
controls the Company or any Guarantor within the meaning of the Securities Act or the Exchange Act
shall have the same rights to contribution as the Company or any Guarantor.

     (e) The agreements contained in this Section 5 shall survive the sale of the Securities
pursuant to a Registration Statement and shall remain in full force and effect, regardless of any
termination or cancellation of this Agreement or any investigation made by or on behalf of any
indemnified party.

     6. Liquidated Damages Under Certain Circumstances. (a) Liquidated damages (the “Liquidated
Damages”) with respect to the Initial Securities shall be assessed as follows if any of the
following events occur (each such event in clauses (i) through (v) below a “Registration Default”):

     (i) If by February 15, 2007, the Exchange Offer Registration Statement is not
declared effective by the SEC;

     (ii) If the Shelf Registration Statement is not filed on or prior to 90 days after
such filing obligation arises;

17

 

     (iii) If the Shelf Registration Statement is not declared effective on or prior to
225 days after such filing obligation arises;

     (iv) If within 30 business days after becoming effective, the Registered Exchange
Offer is not consummated; or

     (v) If after either the Exchange Offer Registration Statement or the Shelf
Registration Statement is declared (or becomes automatically) effective (A) such
Registration Statement thereafter ceases to be effective; or (B) such Registration
Statement or the related prospectus ceases to be usable (except as permitted in paragraph
(b)) in connection with resales of Transfer Restricted Securities during the periods
specified herein.

With respect to the first 90-day period immediately following the occurrence of the first
Registration Default, Liquidated Damages shall accrue on the Transfer Restricted Securities over
and above the interest set forth in the title of the Securities from and including the date on
which any such Registration Default shall occur to but excluding the date on which all such
Registration Defaults have been cured, in an amount equal to $0.05 per week per $1,000 principal
amount of Transfer Restricted Securities. The amount of Liquidated Damages will increase by an
additional $0.05 per week per $1,000 principal amount of Transfer Restricted Securities with
respect to each subsequent 90-day period until all Registration Defaults have been cured, up to a
maximum amount of Liquidated Damages for all Registration Defaults of $0.20 per week per $1,000
principal amount of Transfer Restricted Securities. Following the cure of all Registration
Defaults relating to any Transfer Restricted Securities, Liquidated Damages shall cease to accrue.

     (b) A Registration Default referred to in Section 6(a)(v)(B) hereof shall be deemed not to
have occurred and be continuing in relation to a Shelf Registration Statement or the related
prospectus if (i) such Registration Default has occurred solely as a result of (x) the filing of a
post-effective amendment to such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective amendment is not yet
effective and needs to be declared effective to permit Holders to use the related prospectus or (y)
other material events with respect to the Company that would need to be described in such Shelf
Registration Statement or the related prospectus and (ii) in the case of clause (y), the Company is
proceeding promptly and in good faith to amend or supplement such Shelf Registration Statement and
related prospectus to describe such events; provided, however, that in any case, if such
Registration Default occurs for a continuous period in excess of 30 days, Liquidated Damages shall
be payable in accordance with the above paragraph from the day such Registration Default occurs
until such Registration Default is cured.

18

 

     (c) Any amounts of Liquidated Damages due pursuant to clause (i), (ii), (iii) or (iv) of
Section 6(a) above will be payable on the regular interest payment dates with respect to the
Initial Securities to The Depository Trust Company or its nominee by wire transfer of immediately
available funds or by federal funds check and to holders of certificated Securities by wire
transfer to the accounts specified by them or by mailing checks to their registered addresses if no
such accounts have been specified. The amount of Liquidated Damages will be determined by
multiplying the applicable Liquidated Damages rate by the principal amount of the Initial
Securities, multiplied by a fraction, the numerator of which is the number of days such Liquidated
Damages rate was applicable during such period (determined on the basis of a 360-day year comprised
of twelve 30-day months), and the denominator of which is 360.

     (d) “Transfer Restricted Securities” means each Initial Security until (i) the date on which
such Initial Security has been exchanged by a person other than a broker-dealer for a freely
transferable Exchange Security in the Registered Exchange Offer, (ii) following the exchange by a
broker-dealer in the Registered Exchange Offer of an Initial Security for an Exchange Security, the
date on which such Exchange Security is sold to a purchaser who receives from such broker-dealer on
or prior to the date of such sale a copy of the prospectus contained in the Exchange Offer
Registration Statement, (iii) the date on which the resale of such Initial Security has been
effectively registered under the Securities Act and disposed of in accordance with the Shelf
Registration Statement or (iv) the date on which such Initial Security is distributed to the public
pursuant to Rule 144 under the Securities Act.

     7. Rules 144 and 144A. The Company and the Guarantors shall use their commercially
reasonable efforts to file the reports required to be filed by it under the Securities Act and the
Exchange Act in a timely manner and, if at any time the Company and the Guarantors are not required
to file such reports, it will, upon the request of any Holder of Initial Securities, make publicly
available other information so long as necessary to permit sales of their securities pursuant to
Rules 144 and 144A under the Securities Act. The Company and the Guarantors covenant that they
will take such further action as any Holder of Initial Securities may reasonably request, all to
the extent required from time to time to enable such Holder to sell Initial Securities without
registration under the Securities Act within the limitation of the exemptions provided by Rules 144
and 144A (including the requirements of Rule 144A(d)(4)). The Company and the Guarantors will
provide a copy of this Agreement to prospective purchasers of Initial Securities identified to the
Company by the Initial Purchaser upon request. Upon the request of any Holder of Initial
Securities, the Company and the Guarantors shall deliver to such Holder a written statement as to
whether it has complied with such requirements. Notwithstanding the foregoing, nothing in this
Section 7 shall be deemed to require the Company to register any of its securities pursuant to the
Exchange Act.

19

 

     8. Underwritten Registrations. If any of the Transfer Restricted Securities covered by any
Shelf Registration are to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will administer the offering (“Managing Underwriters”) will be
selected by the Holders of a majority in aggregate principal amount of such Transfer Restricted
Securities to be included in such offering.

     No person may participate in any underwritten registration hereunder unless such person (i)
agrees to sell such person’s Transfer Restricted Securities on the basis reasonably provided in any
underwriting arrangements approved by the persons entitled hereunder to approve such arrangements
and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such underwriting
arrangements.

     9. Miscellaneous.

     (a) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given,
except by the Company and the written consent of the Holders of a majority in principal amount of
the Securities affected by such amendment, modification, supplement, waiver or consent.

     (b) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand delivery, first-class mail, facsimile transmission, or air courier which
guarantees overnight delivery:

          (1) if to a Holder of the Securities, at the most current address given by such Holder to the
Company.

          (2) if to the Initial Purchaser:

Credit Suisse Securities (USA) LLC

Eleven Madison Avenue

New York, NY 10010-3629

Fax No.: (212) 325-4296

Attention: Transactions Advisory Group

20

 

     with a copy to:

Latham & Watkins LLP

633 West 5th St., Suite 4000

Los Angeles, CA 90071

Fax No.: (213) 891-8763

Attention: Steven B. Stokdyk

          (3) if to the Company, at its address as follows:

WCA Waste Corporation

One Riverway, Suite 1400

Houston, TX 77056

Fax No.: (713) 292-2455

Attention: J. Edward Merger

     with a copy to:

Andrews Kurth LLP

600 Travis Street, Suite 4200

Houston, TX 77002

Fax No.: (713) 238-7356

Attention: Roy E. Bertolatus

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; three business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile machine operator,
if sent by facsimile transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

     (c) No Inconsistent Agreements. Neither the Company nor any Guarantor has, as of the date
hereof, entered into, nor shall it, on or after the date hereof, enter into, any agreement with
respect to its securities that is inconsistent with the rights granted to the Holders herein or
otherwise conflicts with the provisions hereof.

     (d) Successors and Assigns. This Agreement shall be binding upon the Company and the
Guarantors and its successors and assigns.

     (e) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

     (f) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

21

 

     (g) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

     (h) Severability. If any one or more of the provisions contained herein, or the application
thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

     (i) Securities Held by the Company. Whenever the consent or approval of Holders of a
specified percentage of principal amount of Securities is required hereunder, Securities held by
the Company or its affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason of their holdings of such Securities) shall
not be counted in determining whether such consent or approval was given by the Holders of such
required percentage.

22

 

     If the foregoing is in accordance with your understanding of our agreement, please sign and
return a counterpart hereof, whereupon this instrument, along with all counterparts, will become a
binding agreement between the Initial Purchaser and the Company and the Guarantors in accordance
with its terms.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	WCA Waste Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joseph J. Scarano, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph J. Scarano, Jr.	 	 
	 

	 	Title:
	 	Vice President	 	 

23

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Eagle Ridge Landfill, LLC	 	 
	 	 	Material Recovery, LLC	 	 
	 	 	Material Reclamation, LLC	 	 
	 	 	Texas Environmental Waste Services, LLC	 	 
	 	 	Transit Waste, LLC	 	 
	 	 	Translift, Inc.	 	 
	 	 	Waste Corporation of Arkansas, Inc.	 	 
	 	 	Waste Corporation of Kansas, Inc.	 	 
	 	 	Waste Corporation of Missouri, Inc.	 	 
	 	 	Waste Corporation of Tennessee, Inc.	 	 
	 	 	Waste Corporation of Texas, L.P.,	 	 
	 

	 	 	 	by WCA Texas Management General, Inc., its	 	 
	 

	 	 	 	general partner	 	 
	 	 	WCA Capital, Inc.	 	 
	 	 	WCA Holdings Corporation	 	 
	 	 	WCA Management Company, LP,	 	 
	 

	 	 	 	by WCA Management General, Inc., its 	 	 
	 

	 	 	 	general partner	 	 
	 	 	WCA Management General, Inc.	 	 
	 	 	WCA of Alabama, L.L.C.	 	 
	 	 	WCA of Central Florida, Inc.	 	 
	 	 	WCA of Florida, Inc.	 	 
	 	 	WCA of High Point, LLC	 	 
	 	 	WCA of North Carolina, LLC	 	 
	 	 	WCA Shiloh Landfill, L.L.C.	 	 
	 	 	WCA Texas Management General, Inc.	 	 
	 	 	WCA Waste Systems, Inc.	 	 
	 	 	WCA Wake Transfer Station, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joseph J. Scarano, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph J. Scarano, Jr.	 	 
	 

	 	Title:
	 	Vice President	 	 
	 

	 	 	 	of each of the foregoing entities	 	 

24

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	WCA Management Limited, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Sesera	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	John Sesera	 	 
	 

	 	Title:
	 	President	 	 

25

 

The foregoing Registration

Rights Agreement is hereby confirmed

and accepted as of the date first

above written.

Credit Suisse Securities (USA) LLC

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Tad Iantuono
 

	 	 
	 

	 	 	 	Name: Tad Iantuono	 	 
	 

	 	 	 	Title: Managing Director	 	 

26

 

SCHEDULE A

	(1)	 	WCA Holdings Corporation;
	 
	(2)	 	WCA Waste Systems, Inc.;
	 
	(3)	 	WCA of Alabama, L.L.C.;
	 
	(4)	 	WCA Shiloh Landfill, L.L.C.;
	 
	(5)	 	Waste Corporation of Tennessee, Inc.;
	 
	(6)	 	WCA of Florida, Inc.;
	 
	(7)	 	WCA of Central Florida, Inc.;
	 
	(8)	 	Waste of Corporation of Missouri, Inc.;
	 
	(9)	 	Eagle Ridge Landfill, LLC;
	 
	(10)	 	WCA Texas Management General, Inc.;
	 
	(11)	 	WCA Management Limited, Inc.;
	 
	(12)	 	Waste Corporation of Texas, L.P.;
	 
	(13)	 	Texas Environmental Waste Services, LLC;
	 
	(14)	 	WCA Management General, Inc.;
	 
	(15)	 	WCA Management Company, L.P.;
	 
	(16)	 	WCA of North Carolina LLC;
	 
	(17)	 	Material Recovery, LLC;
	 
	(18)	 	WCA Wake Transfer Station, LLC;
	 
	(19)	 	WCA of High Point, LLC;
	 
	(20)	 	Material Reclamation, LLC;
	 
	(21)	 	WCA Capital, Inc.;
	 
	(22)	 	Waste Corporation of Arkansas, Inc.;
	 
	(23)	 	Translift, Inc.;
	 
	(24)	 	Waste Corporation of Kansas, Inc.; and
	 
	(25)	 	Transit Waste, LLC

27

 

ANNEX A

     Each broker-dealer that receives Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities. The Letter of Transmittal states that by so acknowledging and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act. This Prospectus, as it may be amended or supplemented
from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities
received in exchange for Initial Securities where such Initial Securities were acquired by such
broker-dealer as a result of market-making activities or other trading activities. The Company and
the Guarantors have agreed that, for a period of 180 days after the Expiration Date (as defined
herein), it will make this Prospectus available to any broker-dealer for use in connection with any
such resale. See “Plan of Distribution.”

28

 

ANNEX B

     Each broker-dealer that receives Exchange Securities for its own account in exchange for
Securities, where such Initial Securities were acquired by such broker-dealer as a result of
market-making activities or other trading activities, must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. See “Plan of Distribution.”

29

 

ANNEX C

PLAN OF DISTRIBUTION

     Each broker-dealer that receives Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities. This Prospectus, as it may be amended or supplemented from time to time,
may be used by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired as a result of
market-making activities or other trading activities. The Company and the Guarantors have agreed
that, for a period of 180 days after the Expiration Date, it will make this prospectus, as amended
or supplemented, available to any broker-dealer for use in connection with any such resale. In
addition, until      , 200 , all dealers effecting transactions in the Exchange
Securities may be required to deliver a prospectus.(1)

     The Company and the Guarantors will not receive any proceeds from any sale of Exchange
Securities by broker-dealers. Exchange Securities received by broker-dealers for their own account
pursuant to the Exchange Offer may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of options on the Exchange
Securities or a combination of such methods of resale, at market prices prevailing at the time of
resale, at prices related to such prevailing market prices or negotiated prices. Any such resale
may be made directly to purchasers or to or through brokers or dealers who may receive compensation
in the form of commissions or concessions from any such broker-dealer or the purchasers of any such
Exchange Securities. Any broker-dealer that resells Exchange Securities that were received by it
for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such Exchange Securities may be deemed to be an “underwriter” within the meaning of
the Securities Act and any profit on any such resale of Exchange Securities and any commission or
concessions received by any such persons may be deemed to be underwriting compensation under the
Securities Act. The Letter of Transmittal states that, by acknowledging that it will deliver and
by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act.

     For a period of 180 days after the Expiration Date, the Company and the Guarantors will
promptly send additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any broker-dealer that requests such documents in the Letter of Transmittal. The
Company and the Guarantors have agreed to pay all reasonable expenses incident to the Exchange
Offer (including the reasonable expenses of one counsel for the Holders of the Securities) other
than commissions or concessions of any brokers or dealers and will indemnify the Holders of the
Securities (including any broker-dealers) against certain liabilities, including liabilities under
the Securities Act.

 

			
	(1)	 	In addition, the legend required by Item
502(e) of Regulation S-K will appear on the back cover page of the Exchange
Offer prospectus.

30

 

ANNEX D

	 	 	 
	o

	 	CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE
PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 

	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

If the undersigned is not a broker-dealer, the undersigned represents that it is not engaged in,
and does not intend to engage in, a distribution of Exchange Securities. If the undersigned is a
broker-dealer that will receive Exchange Securities for its own account in exchange for Initial
Securities that were acquired as a result of market-making activities or other trading activities,
it acknowledges that it will deliver a prospectus in connection with any resale of such Exchange
Securities; however, by so acknowledging and by delivering a prospectus, the undersigned will not
be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.

31exv10w3

 

Exhibit 10.3

EMPLOYMENT AGREEMENT 

     EMPLOYMENT AGREEMENT dated as of June 30, 2005, by and between ASSET CAPITAL CORPORATION,
INC., a Maryland corporation with its principal place of business at 7315 Wisconsin Avenue, Suite
205 East, Bethesda, Maryland 20814 (the “Company”) and Peter C. Minshall, residing at the address
set forth on the signature page hereof (the “Executive”).

     WHEREAS, the Company wishes to employ the Executive, and the Executive wishes to accept such
offer, on the terms set forth below:

     Accordingly, the parties hereto agree as follows:

     1. Term. The Company hereby employs the Executive, and the Executive hereby accepts
such employment, for an initial term commencing as of the date hereof and continuing for a
three-year period following such date, unless sooner terminated in accordance with the provisions
of Section 4 or Section 5; with such term to renew automatically for successive one-year periods
following the initial term in accordance with the terms of this Agreement (subject to termination
as aforesaid) unless either party notifies the other party of non-renewal in writing prior to three
months before the expiration of the initial term and each successive annual renewal term, as
applicable (the period during which the Executive is employed hereunder being hereinafter referred
to as the “Term”).

     2. Duties. During the Term, the Executive shall be employed by the Company as Chief
Executive Officer of the Company, and, as such, the Executive shall faithfully perform for the
Company the duties of said offices and shall perform such other duties of an executive, managerial
or administrative nature as shall be specified and designated from time to time by the

 

 

board of directors of the Company (the “Board”). The Executive shall devote substantially all
of his business time and effort during regular business hours (excluding Saturdays, Sundays and
major holidays) to the performance of his duties hereunder. Subject to the foregoing, the Company
hereby acknowledges that the Executive may engage in the activities described on Exhibit A
hereto.

     3. Compensation.

     3.1 Salary. The Company shall pay the Executive during the Term a salary at a minimum
rate of $325,000 per annum (the “Annual Salary”), in accordance with the customary payroll
practices of the Company applicable to senior executives. The Board periodically shall review the
Executive’s Annual Salary and may provide for such increases therein as it may in its discretion
deem appropriate. Any such increased salary shall constitute the “Annual Salary” as of the time of
the increase. Notwithstanding the foregoing, to the extent any deferral by the Executive of his
Annual Bonus (as defined below) for the partial 2005 fiscal year pursuant to Section 3.2 below is
insufficient to ensure that the Company operates with an operating budget for the Company to be
approved by the Board for the remainder of the 2005 calendar year (the “2005 Operating Budget”),
the Executive agrees to defer receipt of a portion of his Annual Salary during the remainder of the
2005 calendar year to the extent the Compensation Committee of the Board deems it necessary in
order to ensure that the Company operates within the 2005 Operating Budget.

     3.2 Bonus. During the Term, in addition to the Annual Salary, for each fiscal year of
the Company ending during the Term, the Executive shall have the opportunity to receive an annual
bonus (the “Annual Bonus”) in an amount up to 100% of the Annual Salary, with the actual amount and
terms of such Annual Bonus to be determined by the Compensation Committee of

2

 

the Board. The Annual Bonus payable with respect to a fiscal year of the Company shall be
paid no later than the fifteenth day of the third month after the end of the fiscal year. Any
Annual Bonus payable for a partial fiscal year (whether because the commencement date of the Term
was on a date other than January 1 or the Date of Termination is on a date other than December 31)
shall be pro rated by multiplying the Annual Bonus amount by a fraction the numerator of which is
the number of days during the partial fiscal year that the Executive is or was employed by the
Company under this Agreement and the denominator of which is 365. The forgoing shall not limit the
Executive’s eligibility to receive any other bonus under any other bonus plan, stock option or
equity–based plan, or other policy or program that is adopted by the Compensation Committee of the
Board or by the Board itself. Notwithstanding the foregoing, the Executive agrees to defer receipt
of a portion or all of the Annual Bonus for the 2005 calendar year to the extent the Compensation
Committee of the Board deems it necessary in order to ensure that the Company operates within the
2005 Operating Budget.

     3.3 Equity Based Awards.

          (a) Equity Incentive Plan. The Company has established the 2005 Equity Incentive Plan
(“Equity Incentive Plan”). Subject to the terms and conditions of the Equity Incentive Plan, the
Executive shall be eligible to participate in the Equity Incentive Plan, and shall be eligible to
receive annual stock option and/or restricted stock awards under the Equity Incentive Plan. The
Compensation Committee shall approve any such awards made to the Executive pursuant to the Equity
Incentive Plan.

          (b) Founders Shares. Upon formation of the Company, the Executive purchased 86,667
shares of the Company’s common stock (the “Founders Shares”) for a purchase price of $0.001 per
share. The Founders Shares shall be subject to forfeiture restrictions that will

3

 

terminate with respect to 8.33% of the awarded shares at the end of each quarterly period
commencing with the first full fiscal quarter after the date of grant; provided, however, that all
forfeiture restrictions on outstanding Founders Shares will lapse automatically upon (i) a Change
in Control (as defined herein), (ii) a termination by the Company without Cause (as defined
herein), (iii) a termination by the Executive for Good Reason (as defined herein), (iv) the
Executive’s death, (v) the Disability (as defined below) of the Executive, or (vi) the Company’s
failure to renew this Agreement, and that the Executive will forfeit all Founders Shares with
respect to which the forfeiture restrictions have not terminated if he is terminated for Cause or
he terminates for other than Good Reason. The Founders Shares will have voting and dividend
rights. Notwithstanding anything to the contrary contained herein, the Executive agrees that the
Company shall redeem 31,912 of the Executive’s Founders Shares (the “Redemption Shares”) at a
redemption price of $0.001 per share within 40 days after the date of this Agreement; provided,
however, that the number of Redemption Shares actually redeemed by the Company shall be reduced by
a number equal to 1% of the number of shares of common stock issued by the Company pursuant to any
exercise by Friedman, Billings, Ramsey & Co., Inc. (“FBR”) of its additional allotment option under
that certain Purchase/Placement Agreement dated June 23, 2005, among the Company, Asset Capital
Partners, L.P. and FBR.

     3.4 Benefits-In General. The Executive shall be permitted during the Term to
participate in any group life, hospitalization or disability insurance plans, health programs,
retirement plans, fringe benefit programs and other benefits that may be available to other senior
executives of the Company generally, in each case to the extent that the Executive is eligible
under the terms of such plans or programs.

4

 

     3.5 Disability Insurance. The Company will maintain, at its cost, a renewable
long-term Disability plan that, subject to the terms of such plan and any applicable plans,
policies or programs, provides for the annual payment of not less than 60% of the Executive’s
Annual Salary for so long as any long-term Disability of the Executive continues. In addition, the
Company shall reimburse the Executive the amount of the premiums payable by the Executive with
respect to a personal supplemental long-term disability insurance policy providing for benefits
equal to at least 40% of the Executive’s Annual Salary for so long as any long-term Disability of
the Executive continues.

     3.6 Directors and Officers Insurance. During the Term and for a period of 24 months
thereafter, the Executive shall be entitled to director and officer insurance coverage for his acts
and omissions while an officer and director of the Company on a basis no less favorable to him than
the coverage provided to current officers and directors.

     3.7 Life Insurance. The Company will purchase a term life insurance policy for the
benefit of the Executive or the Executive’s designated beneficiaries with a death benefit of $3.0
million. The Executive shall be entitled to reimbursement of any income tax that the Executive
incurs with respect to the Company’s payment of premiums.

     3.8 Vacation. The Executive shall be entitled to vacation of no less than 20 business
days per year, to be credited in accordance with ordinary Company policies.

     3.9 Expenses-In General. The Company shall pay or reimburse the Executive for all
ordinary and reasonable out-of-pocket expenses actually incurred (and, in the case of
reimbursement, paid) by the Executive during the Term in the performance of the Executive’s
services under this Agreement, in accordance with the Company’s policies regarding such
reimbursements. The Company shall reimburse reasonable fees and expenses incurred by the

5

 

Executive for participation in professional and trade associations and reasonable expenses
incurred in connection with business development and client entertainment activities.

     3.10 Automobile. The Company shall provide the Executive with an automobile allowance
of $833.00 per month.

     4. Termination upon Death or Disability. If the Executive dies during the Term, the
Term shall terminate as of the date of death, and the obligations of the Company to or with respect
to the Executive shall terminate in their entirety upon such date except as otherwise provided
under this Section 4. If the Executive is unable to perform substantially and continuously the
duties assigned to him due to a disability as defined for purposes of the Company’s long-term
disability plan then in effect, or, if no such plan is in effect, by virtue of ill health or other
disability for more than 180 consecutive or non-consecutive days out of any consecutive 12-month
period, the Company shall have the right, to the extent permitted by law, to terminate the
employment of the Executive upon notice in writing to the Executive. Upon termination of
employment due to death or disability, (i) the Executive (or the Executive’s estate or
beneficiaries in the case of the death of the Executive) shall be entitled to receive any Annual
Salary and other benefits actually earned and accrued under this Agreement prior to the date of
termination (and reimbursement under this Agreement for expenses incurred prior to the date of
termination); (ii) without duplication of any amounts due under clause (i), the Executive (or the
Executive’s estate or beneficiaries in the case of the death of the Executive) shall receive an
amount equal to the Annual Bonus that, in the absence of such termination, would have been payable
for the fiscal year in which termination occurs, payable at such time as would have applied in the
absence of such termination, with such amount to be multiplied by a fraction (x) the numerator of
which is the number of days in the fiscal year preceding the termination and (y)

6

 

the denominator of which is 365; (iii) all outstanding unvested equity-based awards
(including, without limitation, stock options and restricted stock) held by the Executive shall
fully vest and become immediately exercisable, as applicable, and subject to the terms of such
awards; and (iv) the Executive (or the Executive’s estate or beneficiaries in the case of the death
of the Executive) shall have no further rights to any other compensation or benefits hereunder, or
any other rights hereunder (but, for the avoidance of doubt, shall receive such disability and
death benefits as may be provided under the Company’s plans and arrangements in accordance with
their terms). Upon any termination for Disability under this Section 4, the Executive shall
promptly resign from all positions he then holds with the Company and any of its subsidiaries,
including but not limited to any membership on the Board or on the board of directors of any
subsidiary of the Company.

     5. Certain Terminations of Employment; Certain Benefits.

     5.1 Termination by the Company for Cause; Termination by the Executive without Good
Reason.

          (a) For purposes of this Agreement, “Cause” shall mean the Executive’s:

	 	(i)	 	commission of, and indictment for or formal
admission to, a felony, a crime of moral turpitude, dishonesty, breach
of trust, fraud, misappropriation, embezzlement or unethical business
conduct, or any crime involving the Company;
	 
	 	(ii)	 	continued willful misconduct, willful or gross
neglect in the performance of his duties hereunder, and then only after
appropriate written notice of such misconduct and an appropriate
period, as determined by the Board, to remedy such misconduct or
neglect;
	 
	 	(iii)	 	continued failure to materially adhere to the
clear directions of the Board, to adhere to the Company’s policies and
practices or to devote substantially all of his business time and
efforts to the Company and its subsidiaries in accordance with and
subject to the provisions of Section 2 hereof and failure to cure such
failure

7

 

	 	 	 	within 30 days following written notice from the Company specifying
such failure;
	 
	 	(iv)	 	continued failure to substantially perform his
duties properly assigned to the Executive by the Board of Directors of
the Company in writing (other than any such failure resulting from his
Disability) and failure to cure such failure to perform within 30 days
following written notice from the Company specifying such failure;
	 
	 	(v)	 	material breach of any of the provisions of
Section 6 and failure to cure such breach within 15 days following
written notice from the Company specifying such breach; or
	 
	 	(vi)	 	material and willful breach of the terms and
provisions of this Agreement and failure to cure such breach within 15
days following written notice from the Company specifying such breach;

provided that the Company shall not be permitted to terminate the Executive for Cause except on
written notice given to the Executive at any time not more than 30 days following the occurrence of
any of the events described in clause (ii) through (vi) above (or, if later, the Company’s
knowledge thereof). No termination for Cause under clause (i) through (vi) shall be effective
unless the Board makes a determination that Cause exists after notice to the Executive, and the
Executive has been provided with an opportunity (with counsel of his choice at his own expense) to
contest the determination at a meeting of the Board.

          (b) The Company may terminate this Agreement and the Executive’s employment hereunder for
Cause, and the Executive may terminate his employment on at least 30 days’ written notice given to
the Company. If the Company terminates the Executive for Cause, or the Executive terminates his
employment and the termination by the Executive is not for Good Reason in accordance with Section
5.2, (i) the Executive shall receive Annual Salary and other benefits (including any Annual Bonus
for a fiscal year completed before termination and awarded but not yet paid, or in the event of a
partial fiscal year, a pro rata portion of the Annual

8

 

Bonus earned through the date of such termination, which is to be calculated based on the
Annual Bonus paid for the prior fiscal year with such Annual Bonus amount to be multiplied by a
fraction (x) the numerator of which is the number of days in the fiscal year preceding the
termination and (y) the denominator of which is 365) earned and accrued under this Agreement prior
to the termination of employment (and reimbursement under this Agreement for expenses incurred
prior to the termination of employment); and (ii) the Executive shall have no further rights to any
other compensation or benefits under this Agreement on or after the termination of employment.
Upon any termination under this Section 5.1, the Executive shall promptly resign from all positions
he then holds with the Company and any of its subsidiaries, including but not limited to any
membership on the Board or on the board of directors of any subsidiary of the Company.

     5.2 Termination by the Company without Cause; Termination by the Executive for Good
Reason.

          (a) For purposes of this Agreement, “Good Reason” shall mean, unless otherwise consented to by
the Executive,

	 	(i)	 	the material reduction of the Executive’s
title, authority, duties and responsibilities or the assignment to the
Executive of duties materially inconsistent with the Executive’s
position or positions with the Company;
	 
	 	(ii)	 	a reduction in Annual Salary of the Executive;
	 
	 	(iii)	 	the relocation of the Executive’s office to
more than 50 miles from Bethesda, Maryland; or
	 
	 	(iv)	 	the Company’s breach of any material provision
of this Agreement.

Notwithstanding the foregoing, (i) Good Reason shall not be deemed to exist unless notice of
termination on account thereof (specifying a termination date no later than 30 days from the date

9

 

of such notice) is given no later than 30 days after the time at which the event or condition
purportedly giving rise to Good Reason first occurs or arises and (ii) if there exists (without
regard to this clause (ii)) an event or condition that constitutes Good Reason, the Company shall
have 15 days from the date notice of such a termination is given to cure such event or condition
and, if the Company does so, such event or condition shall not constitute Good Reason hereunder.
In the event of any notice of non-renewal of this Agreement by the Company, as described in Section
1, then (i) the Executive shall receive Annual Salary and other benefits (including any Annual
Bonus for a fiscal year completed before termination) earned and accrued under this Agreement prior
to the non-renewal of this Agreement (and reimbursement under this Agreement for expenses incurred
prior to the termination of employment), (ii) the Executive shall receive a single-sum cash payment
equal to the sum of (x) the Executive’s Annual Salary as in effect immediately before such
non-renewal, and (y) the Executive’s maximum Annual Bonus payable in accordance with Section 3.2
for the fiscal year in which such non-renewal occurs, payable upon the expiration of the Term;
provided, however, that if the Executive is a “specified employee” (as defined in Section 409A of
the Internal Revenue Code), such amount shall be payable upon the date that is six months after the
Executive’s termination of employment, and (iii) all outstanding unvested equity-based awards
(including without limitation stock options and restricted stock) held by the Executive shall fully
vest and shall become immediately exercisable, as applicable, and subject to the terms of such
awards.

          (b) The Company may terminate the Executive’s employment and the Executive may terminate the
Executive’s employment with the Company at any time for any reason or no reason. If the Company
terminates the Executive’s employment and the termination is not covered by Section 4 or 5.1, or
the Executive terminates his employment for Good Reason:

10

 

	 	(i)	 	the Executive shall receive Annual Salary and
other benefits (including any Annual Bonus for a fiscal year completed
before termination) earned and accrued under this Agreement prior to
the termination of employment (and reimbursement under this Agreement
for expenses incurred prior to the termination of employment);
	 
	 	(ii)	 	the Executive shall receive a single-sum cash
payment equal to 2.99 times the sum of (x) the Executive’s Annual
Salary as in effect immediately before such termination, and (y) the
average Annual Bonus paid to the Executive in accordance with Section
3.2 for the two fiscal years preceding termination; provided that, if
the Executive has been employed for less than two years, the Annual
Bonus amount for the purposes of this clause (y) will be the Annual
Bonus paid for the prior fiscal year and, if the Executive has been
employed less than one year, the Annual Bonus amount for purposes of
this clause (y) will be 100% of the Executive’s Annual Salary as then
in effect, payable no later than ten days after such termination or, if
the Executive is a “specified employee” (as defined in Section 409A of
the Internal Revenue Code), the date that is six months after such
termination;
	 
	 	(iii)	 	for a period of one year after termination of
employment, such continuing coverage under the group health plans the
Executive would have received under this Agreement as would have
applied in the absence of such termination, provided that the Company
shall in no event be required to provide any benefits otherwise
required by this clause after such time as the Executive becomes
entitled to receive benefits of the same type from another employer or
recipient of the Executive’s services; and
	 
	 	(iv)	 	all outstanding unvested equity-based awards
(including without limitation stock options and restricted stock) held
by the Executive shall fully vest and shall become immediately
exercisable, as applicable, and subject to the terms of such awards.

          (c) Upon any termination under this Section 5.2, the Executive shall resign from all positions
he then holds with the Company and any of its subsidiaries, including but not limited to any
membership on the Board or on the board of directors of any subsidiary of the Company.

     5.3 Change of Control. Without duplication of the foregoing, upon a “Change of
Control” (as defined below) while the Executive is employed, all outstanding unvested equity-

11

 

based awards (including stock options and restricted stock) shall fully vest and shall become
immediately exercisable, as applicable, and subject to the terms of such awards. In addition, if,
after a Change of Control, the Executive terminates his employment with the Company within the
six-month anniversary of the Change of Control, such termination shall be deemed a termination by
the Executive for Good Reason covered by Section 5.2 (other than for purposes of Section 6.1(a))
and further provided that the amount payable under Section 5.2(b)(ii) shall be payable no later
than ten days after such termination (rather than the date prescribed in Section 5.2(b)(ii)), if
the “Change in Control” satisfies the requirements of a change in control under Section 409A of the
Code. For purposes of this Agreement, “Change in Control” shall mean the happening of any of the
following:

	 	(i)	 	any “person,” including a “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), but excluding the
Company, any entity controlling, controlled by or under common control
with the Company, any employee benefit plan of the Company or any such
entity, and Executive and any “group” (as such term is used in Section
13(d)(3) of the Exchange Act) of which the Executive is a member) is or
becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the
Exchange Act), directly or indirectly, of securities of the Company
representing 50% or more of either (A) the combined voting power of the
Company’s then outstanding securities or (B) the then outstanding
Common Stock of the Company (in either such case other than as a result
of an acquisition of securities directly from the Company); provided,
however, that, in no event shall a Change in Control be deemed to have
occurred upon an initial public offering or a subsequent public
offering of the Common Stock under the Securities Act of 1933, as
amended; or
	 
	 	(ii)	 	any consolidation or merger of the Company
where the stockholders of the Company, immediately prior to the
consolidation or merger, would not, immediately after the consolidation
or merger, beneficially own (as such term is defined in Rule 13d-3
under the Exchange Act), directly or indirectly, shares representing in
the aggregate 50% or more of the combined voting power of the
securities of the corporation issuing cash or

12

 

	 	 	 	securities in the consolidation or merger (or of its ultimate parent
corporation, if any); or
	 
	 	(iii)	 	there shall occur (A) any sale, lease,
exchange or other transfer (in one transaction or a series of
transactions contemplated or arranged by any party as a single plan) of
all or substantially all of the assets of the Company, other than a
sale or disposition by the Company of all or substantially all of the
Company’s assets to an entity, at least 50% of the combined voting
power of the voting securities of which are owned by “persons” (as
defined above) in substantially the same proportion as their ownership
of the Company immediately prior to such sale or (B) the approval by
stockholders of the Company of any plan or proposal for the liquidation
or dissolution of the Company (or, if such approval is not required by
applicable law and is not solicited by the Company, the commencement of
actions constituting such a plan or the closing of such an agreement);
or
	 
	 	(iv)	 	the members of the Board at the beginning of
any consecutive 12-calendar-month period (the “Incumbent Directors”)
cease for any reason other than due to death to constitute at least a
majority of the members of the Board; provided that any director whose
election, or nomination for election by the Company’s stockholders, was
approved by a vote of at least a majority of the members of the Board
then still in office who were members of the Board at the beginning of
such 
12-calendar-month period, shall be deemed to be an Incumbent
Director.

          (b) Upon any termination under this Section 5.3, the Executive shall resign from all positions
he then holds with the Company and any of its subsidiaries, including but not limited to any
membership on the Board or on the board of directors of any subsidiary of the Company.

     5.4 Parachutes. If any amount payable to or other benefit receivable by the Executive
pursuant to this Agreement is deemed to constitute a Parachute Payment (as defined below), alone or
when added to any other amount payable or paid to or other benefit receivable or received by the
Executive which is deemed to constitute a Parachute Payment (whether or not under an existing plan,
arrangement or other agreement), and would result in the imposition on the Executive of an excise
tax under Section 4999 of the Internal Revenue Code of 1986, as

13

 

amended (the “Code”), then, in addition to any other benefits to which the Executive is
entitled under this Agreement, the Executive shall be paid by the Company an amount in cash equal
to the sum of the excise taxes payable by the Executive by reason of receiving Parachute Payments
plus the amount necessary to put the Executive in the same after-tax position (taking into account
any and all applicable federal, state and local excise, income or other taxes at the highest
applicable rates on such Parachute Payments and on any payments under this Section 5.4 as if no
excise taxes had been imposed with respect to Parachute Payments). “Parachute Payment” shall mean
a “parachute payment” as defined in Section 280G of the Code. The calculation under this Section
5.4 shall be as determined by the Company’s accountants.

     6. Covenants of the Executive.

     6.1 Covenant Against Competition; Other Covenants. The Executive acknowledges that
(i) the principal business of the Company (which expressly includes for purposes of this Section 6
(and any related enforcement provisions hereof), its successors and assigns) is the ownership and
leasing of commercial office properties in the greater metropolitan Washington, D.C. marketplace
and its surrounding areas, ranging generally from Baltimore, Maryland through Richmond and Norfolk,
Virginia, as well as the origination of, acquisition of and investment in structured real estate
finance investments (such business, and such other principal businesses in which the Company may
engage during the employ of the Executive, in the locations described, and such other locations in
which the Company may conduct business during the employ of the Executive, as herein being referred
to as the “Business”; provided, however, that, for purposes of this Agreement, the definition of
“Business” shall not include the activities described on Exhibit A hereto); (ii) the
Executive’s work for the Company has given and will continue to give him access to the confidential
affairs and proprietary information of the

14

 

Company; (iii) the covenants and agreements of the Executive contained in this Section 6 are
essential to the business and goodwill of the Company; and (iv) the Company would not have entered
into this Agreement but for the covenants and agreements set forth in this Section 6. Accordingly,
the Executive covenants and agrees that:

          (a) By and in consideration of the salary and benefits to be provided by the Company
hereunder, and subject to Executive receiving all monies due to him as set forth herein, and
further in consideration of the Executive’s exposure to the proprietary information of the Company,
the Executive covenants and agrees that, during the period of the Executive’s employment with the
Company and, in the event of a termination of the Executive’s employment hereunder by the Company
for Cause or a termination of the Executive’s employment hereunder by the Executive without Good
Reason, for a period ending one year following the date upon which such termination becomes
effective, he shall not in the United States, directly or indirectly, except with the prior
approval of the Board, (i) engage in the Business (other than for the Company or its affiliates),
or (ii) render any services to any person, corporation, partnership or other entity (other than the
Company or its affiliates) whose principal business is to engage in the Business or who has taken
substantial measures, or made material investments, evidencing an intention to engage in the
Business other than incidentally as is necessary to engage in its principal business, or (iii)
become interested in any person, corporation, partnership or other entity (other than the Company
or its affiliates) principally engaged in the Business, as a partner, shareholder, principal,
agent, employee, consultant or in any other relationship or capacity; provided, however, that,
notwithstanding the foregoing, (1) the Executive may continue his investments in ownership and
management interests in a commercial office building located at 717 14th Street, NW,
Washington, D.C., ownership and management interests in a commercial

15

 

office building located at 740 Boush Street, Norfolk, Virginia, ownership interests in Octagon
Partners investments and ownership interests in Bee Ridge Plaza LLC, which owns the Bee Ridge Plaza
shopping center located in Sarasota, Florida and (2) the Executive may invest in up to 5% of the
securities of any entity, solely for investment purposes and without participating in the business
thereof, if (A) such securities are traded on any national securities exchange or the National
Association of Securities Dealers, Inc. Automated Quotation System, and (B) the Executive is not a
controlling person of, or a member of a group which controls, such entity. Notwithstanding the
foregoing, the restrictions in this Section 6(a) shall not apply upon and after a termination
covered by Section 5.2. In addition, the restrictions of this Section 6(a) shall not apply to (i)
his investments in ownership and management interests in a commercial office building located at
717 14th Street, NW, Washington, D.C., ownership and management interests in a
commercial office building located at 740 Boush Street, Norfolk, Virginia, ownership interests in
Octagon Partners investments and ownership interests in Bee Ridge Plaza LLC, which owns the Bee
Ridge Plaza shopping center located in Sarasota, Florida and (ii) any other existing investments or
other activities of the Executive which, if applicable, are set forth on Exhibit A hereto.

          (b) During and after the period of the Executive’s employment with the Company and its
affiliates, the Executive shall keep secret and retain in strictest confidence, except in
connection with the business and affairs of the Company and its affiliates, all confidential
matters relating to the Company’s Business and the business of any of its affiliates and to the
Company and any of its affiliates, learned by the Executive heretofore or hereafter directly or
indirectly from the Company or any of its affiliates (the “Confidential Company Information”); and
shall not disclose such Confidential Company Information to anyone outside of the

16

 

Company except with the Company’s express written consent and except for Confidential Company
Information which is at the time of receipt or thereafter becomes publicly known through no
wrongful act of the Executive or is received from a third party not under an obligation to keep
such information confidential and without breach of this Agreement.

          (c) During the period commencing on the date hereof and ending one year following the date
upon which the Executive shall cease to be an employee of the Company and its affiliates, (i) the
Executive shall not, without the Company’s prior written consent, directly or indirectly, knowingly
(A) solicit or encourage to leave the employment or other service of the Company, or any of its
affiliates, any employee or independent contractor thereof or (B) hire (on behalf of the Executive
or any other person or entity) any employee who has left the employment of the Company or any of
its affiliates within the one-year period which follows the termination of such employee’s
employment with the Company and its affiliates, and (ii) the Executive will not, whether for his
own account or for the account of any other person, firm, corporation or other business
organization, intentionally interfere with the Company’s or any of its affiliates’ relationship
with, or endeavor to entice away from the Company or any of its affiliates, any person who during
the Term is or was a customer or client of the Company or any of its affiliates.

     6.2 Rights and Remedies upon Breach. The Executive acknowledges and agrees that any
breach by him of any of the provisions of Section 6.1 (the “Restrictive Covenants”) would result in
irreparable injury and damage for which money damages would not provide an adequate remedy.
Therefore, if the Executive breaches, or threatens to commit a breach of, any of the provisions of
Section 6.1, the Company and its affiliates, in addition to, and not in lieu of, any other rights
and remedies available to the Company and its affiliates under law or in equity

17

 

(including, without limitation, the recovery of damages), shall have the right and remedy to
have the Restrictive Covenants specifically enforced by any court having equity jurisdiction,
including, without limitation, the right to an entry against the Executive of restraining orders
and injunctions (preliminary, mandatory, temporary and permanent) against violations, threatened or
actual, and whether or not then continuing, of such covenants.

     7. Other Provisions.

     7.1 Severability. The Executive acknowledges and agrees that (i) he has had an
opportunity to seek advice of counsel in connection with this Agreement and (ii) the Restrictive
Covenants are reasonable in geographical and temporal scope and in all other respects. If it is
determined that any of the provisions of this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the
provisions of this Agreement shall not thereby be affected and shall be given full effect, without
regard to the invalid portions.

     7.2 Duration and Scope of Covenants. If any court or other decision-maker of
competent jurisdiction determines that any of the Executive’s covenants contained in this
Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, is
unenforceable because of the duration or geographical scope of such provision, then, after such
determination has become final and unappealable, the duration or scope of such provision, as the
case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form,
such provision shall then be enforceable and shall be enforced.

     7.3 Enforceability; Jurisdiction; Arbitration. Any controversy or claim arising out
of or relating to this Agreement or the breach of this Agreement (other than a controversy or claim
arising under Section 6, to the extent necessary for the Company (or its affiliates, where

18

 

applicable) to avail itself of the rights and remedies referred to in Section 6.2) that is not
resolved by the Executive and the Company (or its affiliates, where applicable) shall be submitted
to arbitration in the greater Washington, D.C. metropolitan area in accordance with Maryland law
and the procedures of the American Arbitration Association. The determination of the arbitrator(s)
shall be conclusive and binding on the Company (or its affiliates, where applicable) and the
Executive and judgment may be entered on the arbitrator(s)’ award in any court having jurisdiction.

     7.4 Legal Fees. The Company shall pay directly or reimburse the Executive for all
reasonable legal fees and expenses incurred by the Executive in connection with the review,
negotiation and execution of this Agreement.

     7.5 Notices. Any notice or other communication required or permitted hereunder shall
be in writing and shall be delivered personally, telegraphed, telexed, sent by facsimile
transmission or sent by certified, registered or express mail, postage prepaid. Any such notice
shall be deemed given when so delivered personally, telegraphed, telexed or sent by facsimile
transmission or, if mailed, five days after the date of deposit in the United States mails as
follows:

	 	(i)	 	If to the Company, to:

	 	 	 
	 

	 	7315 Wisconsin Avenue
	 

	 	Suite 205 East
	 

	 	Bethesda, MD 20814
	 

	 	Attention: Barry E. Johnson
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Hunton & Williams LLP
	 

	 	Riverfront Plaza, East Tower
	 

	 	951 East Byrd Street
	 

	 	Richmond, VA 23219
	 

	 	Attention: Daniel M. LeBey

19

 

	 	(ii)	 	If to the Executive, to the address set forth
on the signature page hereof.

Any such person may by notice given in accordance with this Section 7.5 to the other parties hereto
designate another address or person for receipt by such person of notices hereunder.

     7.6 Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior agreements, written or
oral, with respect thereto.

     7.7 Waivers and Amendments. This Agreement may be amended, superseded, canceled,
renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any
party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any waiver on the part of any party of any such right, power or privilege nor any single or
partial exercise of any such right, power or privilege, preclude any other or further exercise
thereof or the exercise of any other such right, power or privilege.

     7.8 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF MARYLAND WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW WHICH
COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF MARYLAND.

     7.9 Assignment. This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors, heirs (in the case of the Executive) and assigns. No
rights or obligations of the Company under this Agreement may be assigned or transferred by the
Company except that such rights or obligations may be assigned or transferred, subject to Section
5.3, pursuant to a merger or consolidation in which the Company is not the continuing

20

 

entity, or the sale or liquidation of all or substantially all of the assets of the Company;
provided, however, that the assignee or transferee is the successor to all or substantially all of
the assets of the Company and such assignee or transferee assumes the liabilities, obligations and
duties of the Company, as contained in this Agreement, either contractually or as a matter of law.

     7.10 Withholding. The Company shall be entitled to withhold from any payments or
deemed payments any amount of tax withholding it determines to be required by law.

     7.11 Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the parties and their respective successors, permitted assigns, heirs, executors and legal
representatives.

     7.12 Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original but all such
counterparts together shall constitute one and the same instrument. Each counterpart may consist
of two copies hereof each signed by one of the parties hereto.

     7.13 Survival. Anything contained in this Agreement to the contrary notwithstanding,
the provisions of Sections 5 and 6 and any other provisions of this Agreement expressly imposing
obligations that survive termination of Executive’s employment hereunder, and the other provisions
of this Section 7 to the extent necessary to effectuate the survival of such provisions, shall
survive termination of this Agreement and any termination of the Executive’s employment hereunder.

     7.14 Existing Agreements. The Executive represents to the Company that he is not
subject or a party to any employment or consulting agreement, non-competition covenant or other
agreement, covenant or understanding which might prohibit him from executing this Agreement or
limit his ability to fulfill his responsibilities hereunder.

21

 

     7.15 Headings. The headings in this Agreement are for reference only and shall not
affect the interpretation of this Agreement.

22

 

     IN WITNESS WHEREOF, the parties hereto have signed their names as of the day and year first
above written.

	 	 	 	 	 	 	 	 	 
	 	 	ASSET CAPITAL CORPORATION, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Blair D. Fernau	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Blair D. Fernau	 	 
	 

	 	 	 	Title:
	 	Vice Chairman and Chief Investment	 	 
	 

	 	 	 	 	 	Officer	 	 
	 
	 	 	 	 	/s/ Peter C. Minshall	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Peter C. Minshall	 	 
	 
	 

	 	 	 	 	 	7315 Wisconsin Avenue	 	 
	 

	 	 	 	 	 	Suite 205 East	 	 
	 

	 	 	 	 	 	Bethesda, MD 20814	 	 

23

 

Exhibit A

List of Excluded Investments

          Investments or activities involved with the following:

	 	1)	 	Ownership and management interest in the office property located at 717
14th Street, NW, Washington, D.C.;
	 
	 	2)	 	Ownership and management interest in the office property located 740 Boush
Street, Norfolk, Virginia;
	 
	 	3)	 	Ownership interest in Octagon Partners investments;
	 
	 	4)	 	Ownership interest in Bee Ridge Plaza LLC, which owns the Bee Ridge Plaza
shopping center located in Sarasota, Florida;
	 
	 	5)	 	Existing or future investments opportunities with the Zitelman Group or their
affiliates.

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