Document:

exv10w01

 

Exhibit
10.01

ALLIED WASTE INDUSTRIES, INC.

2006 SENIOR MANAGEMENT INCENTIVE PLAN

[Effective January 1, 2006]

1. Establishment and Purpose of Plan

     Allied Waste Industries, Inc. (“Company”) hereby establishes this Senior Management Incentive
Plan (“Plan”) to provide Annual Incentives for the Company’s Senior Executive Officers. The Plan is
established pursuant to the Company’s Executive Incentive Compensation Plan (“EICP”) and subject to
the approval of the EICP by the Company’s stockholders. The purpose of the Plan is to allow the
Company to attract, retain, and provide appropriate performance incentives for senior management.
The Plan is intended to provide performance-based compensation under the EICP, and the Annual
Incentives paid under this Plan will be subject to all of the terms of the EICP, including the
Incentive Formula (as defined in the EICP).

     This Plan is established subject to the approval of the EICP by the Company’s stockholders at
their annual meeting in 2006.

     Unless otherwise specified, capitalized terms used in this Plan are defined in Section 9.

2. Eligibility and Participation

     The Committee will determine, for each Performance Period (as defined in the EICP), which
Senior Executive Officers are eligible to participate in the Plan and the terms of such
participation as provided in this Plan. Participation in the Plan for any given Performance Period
does not guarantee participation (at all, or at the same or similar level) in any subsequent
Performance Period.

3. Targeted Annual Incentive

     For each Performance Period, the Committee will determine the Targeted Annual Incentive for
each Participant. Targeted Annual Incentives shall be subject to any maximum set by the Committee
in accordance with Section 5, and to the Incentive Formula and any other applicable limitations in
the EICP. Each Participant will be notified, in writing, of his Targeted Annual Incentive.

4. Performance Measures and Goals

     For each Performance Period, the Committee will establish one or more Performance Goals that
must be achieved for a Participant to receive payment of all or a portion of his Targeted Annual
Incentive for that Performance Period. Performance Goals may be measured based upon metrics
reflecting one or more of the following business measurements: earnings, cash flow, revenues,
financial return ratios, debt reduction, risk management, customer satisfaction, and total
shareholder returns, any of which may be measured either in absolute terms or as compared to
another company or companies or as compared to prior periods. Performance Goals also may be based
in whole or in part on the achievement of individual objectives, as determined by the Committee in
its sole discretion.

     The Committee may assign each Performance Goal a weighting, so that its achievement will
result in a specified percentage of the overall Annual Incentive being earned. The Committee also
may establish threshold, target, and maximum targets for each Performance Goal. The Committee may
make Performance Goals independent so that the specified percentage of an overall Targeted Annual
Incentive can be earned if one Performance Goal is met, even if the threshold performance is not
met for another Performance Goal. The Committee may set different

 

 

Performance Goals, targets, and weightings with respect to each Participant and each
Performance Period. Each Participant will be notified, in writing, of the Performance Goals,
targets and weightings applicable for his Targeted Annual Incentive.

     Once Performance Goals, targets and weightings are determined for a Performance Period, those
Performance Goals, targets and weightings will not change for that Performance Period; provided,
however, that if an extraordinary transaction or event results in a significant impact relative to
Performance Goals, the Committee, in its complete and sole discretion, may adjust any Performance
Goals used in that Performance Period to exclude or reduce the impact of that transaction or event.

5. Annual Incentive Payments

     The Committee, in its sole and complete discretion, will determine whether and to what extent
the Performance Goals that it has set have been attained for the relevant Performance Period. The
Committee will document, in writing, its determination, including the amount of the Annual
Incentive payment, if any, to be made to each Participant. For a relevant Performance Period, the
Committee may establish a maximum amount, per Participant, to be paid, which is lower than the
Targeted Annual Incentive.

     No Annual Incentive payments will be made prior to the Committee’s determination of the
amounts to be paid. Once the Committee has determined the amount of the Annual Incentive to be
paid, payment will be made in a lump sum cash payment not later than two and one-half months
following the end of the Performance Period for which the Annual Incentive is to be paid,
provided, however, that the Participant must be employed on the last day of the Performance Period
for which the payout is made. If a Participant’s employment is terminated prior to the last day of
the Performance Period, the Participant’s Annual Incentive for that Performance Period will be
forfeited in its entirety unless otherwise provided in the Participant’s employment or other
written agreement with the Company.

6. Administration

     The Committee is responsible for the administration and interpretation of the Plan and the
EICP. All determinations under the Plan (including but not limited to eligibility, terms and
conditions of participation, and payment of Annual Incentives) will be made by the Committee in its
sole and complete discretion. The Committee may establish such rules and procedures as it deems
necessary or advisable for the proper administration of the Plan and may take any such other action
in connection with or in relation to accomplishing the objectives of the Plan as the Committee
deems necessary or advisable. Each determination or other action made or taken with respect to the
Plan, including the interpretation of all of the provisions of the Plan and the specific conditions
of and provisions for any Annual Incentives paid under the Plan, will be final and conclusive for
all purposes and upon all persons.

     The Committee may delegate certain of its administrative powers to one or more officers of the
Company. The Committee may authorize any one or more of its members or any officer of the Company
to execute and deliver documents on behalf of the Committee. However, the Committee will remain
responsible for approving all of the terms and conditions of the Plan, including but not limited to
determining the establishment and satisfaction of Performance Goals.

     No member of the Committee shall be liable for any action, omission or determination relating
to the Plan, and the Company shall indemnify and hold harmless each member of the Committee and
each other director or employee of the Company to whom any duty or power relating to the
administration or interpretation of the Plan has been delegated from and against any cost or
expense (including attorneys’ fees) or liability (including any sum paid in settlement of a claim
with the approval of the Committee) arising out of any action, omission or determination relating
to the Plan, unless, in either case, such action, omission or determination was taken or

2

 

made by such member, director or employee in bad faith and without reasonable belief that it
was in the best interests of the Company.

7. Amendment and Termination

     The Committee may, at any time, and in its sole discretion, amend, modify, suspend, or
terminate the Plan, including any amendment deemed by the Committee to be necessary or desirable to
correct any defect or to rectify an omission or to reconcile any inconsistency in the Plan or in
any Annual Incentive, provided that shareholder approval is obtained if required by Securities
Exchange Commission or New York Stock Exchange rules or regulations, or by Section 162(m) of the
Internal Revenue Code of 1986, as amended. No amendment, modification, suspension or termination
of the Plan may in any manner affect Performance Goals previously certified by the Committee as
having been attained, or Annual Incentive payments previously approved by the Committee, without
the consent of the Participant, unless the Committee has made a determination that an amendment or
modification is in the best interests of the Company and all of the Participants, but in no event
may such amendment or modification result in an increase in the amount of any such payment.

8. Miscellaneous

     (a) The Plan and all determinations made and actions taken under the Plan will be governed by
the laws of the State of Arizona and construed in accordance therewith.

     (b) Prior to pursuing any equitable or legal action, any individual who believes that he is
entitled to an Annual Incentive payment under the terms of this Plan must follow these procedures.

     (i) Within 30 days after the Committee determines the Annual Incentive payments to be
made for a Performance Period, an individual who disagrees with the Committee’s
determination must file, in writing, a written statement with the Committee, setting forth
the amount that the individual believes should be paid to him and the basis and underlying
facts supporting such belief. If an individual does not file a written statement with the
Committee within this 30 day period, the Committee’s determination shall be deemed final,
conclusive, and uncontestable.

     (ii) If a written statement is timely filed with the Committee, the Committee shall
review the written statement and shall determine, in its sole and complete discretion,
whether to confirm its prior determination or modify, in whole or in part, its prior
determination. This review shall occur at the next regularly scheduled meeting of the
Committee following the Committee’s receipt of the individual’s written statement;
provided, however, that if the written statement is received within 15 days of the
Committee’s next regularly scheduled meeting, the review may be postponed to the regularly
scheduled meeting immediately following the next regularly scheduled meeting. The
Committee will provide the individual with written notice of its decision on review within
15 days of the date on which the review occurs.

     (iii) If the individual’s request is denied in whole or in part, the individual may
pursue applicable equitable or legal remedies; provided, however, that:

     a) Any such action must be brought within 12 months of the date on which the
individual receives the Committee’s written notice referred to in paragraph (ii)
above;

     b) Any such action must be brought in the Maricopa County Superior Court in
the State of Arizona; and

3

 

     c) In any such action, the Committee’s determination (including but not
limited to interpretation of Plan provisions and any findings of fact) shall be
treated as final and not subject to “de novo” review unless shown to be arbitrary
and capricious.

     (c) The Company will have the right to deduct from all Annual Incentive payments any taxes
required to be withheld with respect to such payments.

     (d) Any Annual Incentive payments due but not paid to a Participant who is deceased will be
made to the Participant’s beneficiary. The Participant’s beneficiary will be the beneficiary on
file with respect to Company paid life insurance or, if none, the Participant’s estate.

     (e) Nothing contained in the Plan shall confer upon any Participant any right with respect to
the continuation of his or her employment by the Company or interfere in any way with the right of
the Company, subject to the terms of any separate employment agreement to the contrary, at any time
to terminate such employment.

9. Definitions

     (a) “Annual Incentive” means a cash incentive payment to be paid under this Plan if the
requirements for the cash incentive are met.

     (b) “Board” means the Board of Directors of Allied Waste Industries, Inc.

     (c) “Committee” means the Management Development/Compensation Committee of the Board, or such
other committee consisting of not less than two Non-Employee Directors as the Board of Directors
may appoint from time to time to administer the Plan.

     (c) “Company” means Allied Waste Industries, Inc., its Subsidiaries, and any successors.

     (e) “EICP” means the Allied Waste Industries, Inc. 2006 Executive Incentive Compensation Plan,
as may be amended from time to time.

     (f) “Non-Employee Director” means a member of the Company’s Board of Directors who (i)
is not at the time in question an officer or employee of the Company or any Subsidiary; (ii) has
not received compensation for serving as a consultant or in any other non-director capacity or who
had an interest in any transaction with the Company or any Subsidiary that would exceed the $60,000
threshold for which disclosure would be required under Item 404(a) of Regulation S-K or (iii) has
not been engaged through another party in a business relationship with the Company or any
Subsidiary that would be disclosable under Item 404(b) of Regulation S-K.

     (g) “Performance Goals” means one or more performance goals established by the Committee.

     (h) “Plan” means the 2006 Senior Management Incentive Plan, as set forth herein and as may be
amended from time to time.

     (i) “Participant” means a Senior Executive Officer who has been selected by the Committee to
participate in this Plan.

     (j) “Senior Executive Officers” means the Company’s Chief Executive Officer, President,
Executive Vice Presidents, or any other person who is deemed by the Board to be an executive
officer.

4

 

     (k) “Subsidiary” means any corporation or other entity in which, at the pertinent time, the
Company owns, directly or indirectly, stock or other equity interests vested with more than 50% of
the total combined voting power of all classes of stock or other equity interests of such
corporation or other entity within the meaning of Section 424(f) of the Internal Revenue Code.

     (l) “Targeted Annual Incentive” is the amount, expressed as a percentage of the Participant’s
annual base salary, that the Participant may earn as an Annual Incentive under this Plan.

5

 

ALLIED WASTE INDUSTRIES, INC.,

a Delaware corporation

	 	 	 	 	 
	 

	 	By
	 	 
	 

	 	 	 	 

6exv10w02

 

Exhibit
10.02

FIRST AMENDMENT TO THE

ALLIED WASTE INDUSTRIES, INC.

2005 NON-EMPLOYEE DIRECTOR EQUITY COMPENSATION PLAN

     THIS AMENDMENT is made and entered into on February 9, 2006, by Allied Waste Industries, Inc.
(“Company”).

R E C I T A L S:

     1. The Employer maintains the Allied Waste Industries, Inc. 2005 Non-Employee Director Equity
Compensation Plan, which was made effective May 20, 2005 (“Plan”);

     2. The Employer has reserved the right to amend the Plan in whole or in part; and

     3. The Employer intends to amend the Plan.

     THEREFORE, the Employer hereby adopts this Amendment as follows:

     1. Section 8(b) of the Plan is hereby amended to read as follows:

     If an Eligible Director elects to have his or her Cash Fee Award paid in Common Stock,
the number of shares shall be determined by dividing the dollar amount of the Cash Fee
Award to be paid in the form of shares by the Fair Market Value of one share of Common
Stock on the last day of the calendar quarter in which the Cash Fee Award is earned;
provided, however, that the number of shares of Common Stock shall be rounded downward such
that no fractional share shall be issued.

     2. The Effective Date of this Amendment shall be May 20, 2005.

     3. Except as amended, all of the terms and conditions of the Plan shall remain in full force
and effect.

	 	 	 	 	 
	 	 	ALLIED WASTE INDUSTRIES,
	 	 	     INC., a Delaware corporation
	 
	 	 	 	 
	 

	 	By
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]