Document:

EXHIBIT 10.2 LEASE AGREEMENT AS AMENDED BETWEEN AMERICAN ECOLOGY CORPORATION AND

                               THE STATE OF NEVADA

                                      LEASE
                                      -----

          This agreement made and entered into this 1st day of May, 1977, by and
between the State of Nevada, Department of Human Resources, hereinafter called
"LESSOR," and Nuclear Engineering Company, Inc., hereinafter called "LESSEE," a
corporation duly organized and existing under the laws of the State of
California, authorized to do business in the State of Nevada, having its
registered office in Beatty, Nevada, and authorized to engage in the business of
receiving, possessing, processing, repackaging, using, storing and disposing of
radioactive wastes and materials by License No. 04-3766-01 issued by the Nevada
State Health Division, and being further authorized by appropriate perm issued
in accordance with applicable provisions of law to engage in the disposal of
chemical and toxic wastes and materials.

                                   WITNESSETH:
                                   ----------

          WHEREAS, LESSOR has determined that a facility for the disposal of
low-level radioactive waste materials may be maintained in the State of Nevada;
and

          WHEREAS, LESSOR has determined that a facility for the disposal of
chemical and toxic waste and materials may be maintained in the State of Nevada;
and

          WHEREAS, LESSOR has procured certain real estate hereinafter referred
to as the "Site";

          NOW, THEREFORE, in consideration of the payments reserve herein and
the mutual covenants made by the parties, it is agreed as follows:

          I.  RENTAL-LICENSE FEE.  For and in consideration of the terms,
          ----------------------
covenants, payments, conditions and restrictions hereinafter set forth, the
LESSOR, pursuant to Chapter 374 of the 1961 Statutes of Nevada, does hereby
lease, let and demise unto LESSEE the following described premises situate in
the County of Nye, State of Nevada, more particularly described as follows, to
wit:

               All that certain piece, parcel or

               tract of land located in the NW1/4

               NE1/4; NE1/4 NW1/4 of Section 35,

               Twp. 13 South, Range 47 Ease, M.D.B.&M.

               containing 80 acres, more or less.

                                        1
<PAGE>
          To have and to hold unto the LESSEE for the term of twenty (20) years
from the effective date hereof, with the option to extend for an additional in
accordance with the terms of this lease, at a yearly rental of ten thousand
($10,000.00) per year, the first annual payment acknowledged, and succeeding
payments to be payable annually within twenty (20) days after the anniversary
date of this lease.  The rental payments shall be payable to the LESSOR;
provided, however, that in the event regulations are promulgated establishing a
license fee for the issuance of a license to dispose of low-level radioactive
waste it is acknowledged and agreed that LESSEE shall have as a full credit
against the payment of the aforestated license fee any and all rental fees
previously paid under this lease.  Further, LESSOR and LESSEE agree that upon
the establishment of a license fee that LESSEE'S responsibility for payment of
any and all rental fees, as set forth in this lease, shall immediately cease and
the rental fee terms contained herein shall be null and void at that time.

          II.  RENEWAL OF LEASE.  The term of this lease shall be extended for
          ---------------------
an additional ten (10) year term if, prior to six (6) months before the end of
the term but not before nineteen (19) years from the effective date of this
lease, the LESSEE makes written request to the LESSOR that it wishes to exercise
its option to extend under this paragraph.  The LESSOR may, notwithstanding
LESSEE'S option herein, declare the lease terminated at the end of the initial
term if, after consultation with the State Health Officer, it makes a reasonable
determination that, considering the volume of waste materials buried at the Site
and the available space remaining, that an extension for an additional term
would not be feasible.  The LESSOR may, however, extend the lease for a term
less than ten (10) years if, after consultation with the State Health Officer,
it determines that such an extension is feasible, considering the factors
hereinbefore set forth.  The LESSOR'S determination of feasibility under this
paragraph is subject to review by the State Board of Health.

          III.  OPPORTUNITY FOR HEARING.  Prior to the issuing of any order or
          -----------------------------
the making of any determination including but not limited to the denial,
modification or revocation of this lease the LESSOR and the State Board of
Health shall give reasonable notice in writing by certified mail to the LESSEE
and shall afford the LESSEE an opportunity for a hearing within twenty (20)
calendar days after giving the aforesaid notice.

          IV.  ASSIGNMENT.  The LESSEE may not assign the lease, nor any right
          ---------------
inuring to its benefit by virtue of any term or covenant herein set forth,
without prior written approval of the LESSOR.  For purposes of this paragraph a
sale or change of Corporate ownership directly affecting this lease shall be
deemed

                                        2
<PAGE>
an assignment requiring prior written approval by LESSOR as to the technical
competence of the assignee to assume burial operations, it being understood and
agreed that technical competence shall, as a minimum, be deemed legal and
factual capability for successfully obtaining and carrying out lawful activity
under either a license issued in accordance with law for the receipt, storage
and disposal of chemical and toxic waste materials. The parties acknowledge and
agree that the LESSOR shall not unreasonably withhold its approval of any
proposed assignment by LESSEE.

          The LESSEE agrees that it will not, without the written consent of the
LESSOR, sublet the premises or any part thereof or permit the use of the
premises by any party other than the LESSEE.

          V.  TERMINATION.  The LESSOR and LESSEE agree that the primary purpose
          ---------------
for which this lease is entered into is the proper burial and disposal of
radioactive and chemical and toxic wastes and materials and any other activity
which may lawfully be carried out under the terms of License No. 04-3766-01 or
any other provision of Nevada Revised Statutes.  The parties, therefore,
expressly agree that the portion of the lease providing for the disposal or
burial of radioactive waste may, at the option of the LESSOR, terminate after
hearing and opportunity for judicial review is afforded LESSEE in the event
License No. 04-3766-01 and all amendments thereto or any renewal thereof expires
without timely application for renewal thereof having been made or for any
reason ceases to be effective.

          VI.  RENEWAL OF LICENSE.  The LESSEE shall diligently and
          -----------------------
expeditiously provide the State Health Officer with information as required by
law for processing any application LESSEE may submit for any renewal of its
license issued under NRS Chapter 459.  Failure on the part of the LESSEE to
timely file an application for renewal in accordance with applicable State
regulations, after notice to the LESSEE and reasonable opportunity to file
following such notice, not to exceed thirty (30) days, may be deemed an
expression of intent on the part of the LESSEE to voluntarily surrender the
portion of the premises utilized for the disposal of low-level radioactive waste
unto the LESSOR who may then declare that part of the lease terminated by
serving written notice of its intent to terminate under this paragraph upon
LESSEE.  In no event, however, shall such an aforesaid voluntary surrender or
termination of the LESSEE'S rights to dispose or bury low-level radioactive
waste affect the portion of the lease that provides for the disposal of chemical
and toxic wastes and materials and in that respect this lease shall continue in
full force and effect.

                                        3
<PAGE>
          VII.  LIMITED TERMINATION-ADJUSTMENT OF BURIAL FEE.  The LESSOR and
          --------------------------------------------------
LESSEE further agree that a termination or voluntary surrender of one of
LESSEE'S rights to dispose of or store either low-level radioactive wastes or
chemical and toxic wastes and materials shall not affect LESSEE'S right under
this lease to continue to dispose of or store any of the other aforestated
materials not so terminated or surrendered.  LESSEE agrees that in the event it
continues operations at either Site not so terminated or surrendered LESSEE will
renegotiate a reasonable adjustment, if any, in the burial fee applicable to the
Site retained by LESSEE.

          VIII.  COMPLIANCE WITH APPLICABLE LAWS.  The LESSEE covenants and
          --------------------------------------
agrees that it will use the leased premises only for the purposes for which this
lease is entered into and in all respects in accordance with the laws of the
State of Nevada, and with the requirements specified in License No. 04-3766-01
and all amendments thereto or renewal thereof.  It is expressly understood that
the LESSEE shall comply with all applicable laws, rules and regulations of the
United States, and all applicable regulations of the State of Nevada as the same
are properly promulgated and amended from time to time by the Nevada State Board
of Health and the Nevada State Environmental Commission.  However, if the LESSEE
is required to comply with any Federal or State laws, rules or regulations that
render it prohibitive economically or otherwise, for LESSEE to continue its
rights and obligations under this lease the parties agree to immediately
renegotiate those provisions of this lease affected by such laws, rules or
regulations.

          If, within ninety (90) days after LESSEE'S written request to
renegotiate the lease, the parties fail to reach agreement, either party shall
thereafter have the right to cancel this lease, within thirty (30) days.

          IX.  INSURANCE.  The LESSEE shall provide adequate hazard and fire
          --------------
insurance at its own proper expense on all outbuildings, fixtures and other
personal property situate on the leased premises, with loss payable provisions
in favor of the LESSEE.  The proceeds from any hazard or fire insurance shall be
used by the LESSEE to replace all or so much of said outbuildings, fixtures or
other personal property as may be economically reasonable and feasible.

          X.  REPAIRS.  The LESSEE shall make all necessary repairs or
          -----------
improvements as may be economically reasonable or feasible to all outbuildings,
fixtures and other personal property situate on the leased premises at its own
proper expense.

                                        4
<PAGE>
          XI.  FEES FOR PERPETUAL CARE AND MAINTENANCE.  The LESSEE agrees to
          --------------------------------------------
pay LESSOR the sum of thirteen cents (13 ) for each and every cubic foot of
low-level radioactive waste materials and seven cents (7 ) for each and every
cubic foot of chemical and toxic waste materials which is disposed of or buried
upon the described premises to provide funds for a perpetual care and
maintenance trust fund as provided by law.

          The amounts payable to LESSOR for the disposal or burial of low-level
radioactive waste or chemical and toxic waste under this lease are for a term of
ten (10) years from the effective date of this lease.  At the expiration of each
ten (10) year period the LESSOR and the LESSEE hereby agree to conduct a joint
technical study to reevaluate the then existing conditions.  Subsequent to the
completion of the aforestated joint study should additional funds be determined
necessary then the parties agree to renegotiate the cubic foot amounts payable
to LESSOR; provided, however, LESSOR agrees that any increase in the amounts to
be paid for each and every cubic foot of low-level radioactive waste or chemical
and toxic waste disposed of or buried upon the premises shall not exceed one
hundred percent (100%) of the then current rates.

          XII.  PREPAYMENT.  LESSEE shall pay to LESSOR the sum of FIFTY
          ----------------
THOUSAND AND NO/100 DOLLARS ($50,000.00) which shall constitute a prepayment for
the disposal and/or burial of radioactive, chemical and toxic wastes and
materials on the heretofore described premises.   All prepayments shall be
deposited by LESSOR in the radioactive materials disposal fund as provided by
law.  The aforesaid prepayment shall be debited by LESSOR in accordance with the
existing perpetual care and maintenance contribution rates and the monthly
burial or disposal quantities for radioactive, chemical and toxic waste and
materials.  LESSEE shall provide additional prepayments when the balance of the
deposit is equal to five percent (5%) of the original prepayment,
notwithstanding that such prepayments may occur at intervals more frequent than
on a yearly basis.  Furthermore, LESSOR and LESSEE agree that LESSEE shall
receive full credit and appropriate adjustments for any and all prepayments made
prior to the execution of this lease document.  In the even this lease is
terminated for whatsoever reason, LESSOR agrees that LESSEE shall receive a full
refund for any and all prepayment amounts not previously debited by LESSOR in
accordance with all applicable provisions of this lease.

          The LESSOR and LESSEE acknowledge and agree that the primary purpose
of LESSEE'S payment to LESSOR of the cubic foot charge on low-level radioactive,
chemical and toxic wastes disposed of

                                        5
<PAGE>
or buried at the Site is to provide funds for satisfactory surveillance in
conjunction with the implementation of proper safeguards for the public health
and safety upon expiration of the lease term or extension thereof and final
closure.

          XIII.  MINIMUM BURIAL DEDUCTION.  It is understood that the primary
          -------------------------------
purpose for the assessment of the aforestated burial rate is to ensure the
adequate growth of a perpetual care and maintenance fund.

          In order to stimulate the growth of the perpetual care and maintenance
fund, LESSOR shall deduct for any six (6) month operating period the minimum
amount of TWELVE THOUSAND AND NO/100 DOLLARS ($12,000.00) from the burial
prepayment as set forth in Section XII herein.  The Minimum Burial Deduction
amount will be adjusted at the end of each five (5) year calendar period during
the term of this lease or any extension thereof.  The adjusted minimum deduction
amount will be computed by multiplying the annual average of the latest five (5)
years' deposits by the then current contribution rates and said adjustment will
be effective for the next succeeding five (5) year period.

          The LESSOR agrees to make adjustments on a consecutive twelve month
basis in the event actual revenue earned by the LESSOR falls below the minimum
burial deduction; LESSEE shall receive a credit to the prepayment in the amount
of the difference between the minimum burial deduction and the actual revenue
earned.  However, if the actual revenue earned by the LESSOR from collection of
the burial rates set forth in Section XI exceeds the applicable minimum
deduction set forth in the preceding paragraph, the actual revenue earned will
be deducted from the prepayment set forth in Section XII.

          LESSOR and LESSEE agree that LESSEE'S performance as set forth in this
provision shall be excused for any month in the event of an act of God, war,
riot; fire, lack of adequate fuel; power, labor, transportation; compliance with
governmental requests, actions, laws, regulations, orders or action, or in the
event of labor trouble, (provided that LESSEE shall not be required to settle a
labor dispute against its own best judgment); or any other event beyond the
reasonable control of LESSEE; which event prevents the delivery, transportation,
acceptance or disposal of waste products.

          XIV.  VIOLATIONS.  The LESSEE will not, without the LESSOR'S consent
          ----------------
violate any of the terms and conditions of this lease, or the terms of
authorizing licenses issued by the State of Nevada.  If such violations, misuse,
or noncompliance occur, which result in lawful revocation of License No.
04-3766-01

                                        6
<PAGE>
or any amendment thereto or renewal thereof, the LESSOR shall have the right,
upon written notice of its intention and after providing an opportunity to
LESSEE for hearing as provided herein and judicial review, to terminate this
lease solely as to that portion thereof providing for radioactive waste
disposal.

          XV.  COMPENSATION TO LESSEE UPON TERMINATION.  In the event of such
          --------------------------------------------
termination of this lease as to that portion providing for radioactive waste
disposal should LESSOR relet that portion of the Site to any other party for the
same, similar, or allied use, LESSEE shall be entitled to reasonable
compensation, including, but not limited to, any and all buildings and other
Site improvements left thereon.  In the event LESSOR or LESSEE cannot reach an
agreement as to the amount of such compensation, the same shall be submitted to
arbitration before an arbitrator appointed by the American Arbitration
Association.  The costs of said arbitration shall be borne equally by the
parties.

          XVI.  WAIVER.  The LESSEE agrees that the LESSOR'S failure to insist
          ------------
upon the strict performance of any provision of this lease, failure to exercise
any right based upon a breach thereof, or the acceptance by the LESSOR of any
fees during such breach shall not waive any of the LESSOR'S rights under this
lease except when the LESSOR has agreed in writing to waive such rights.

          XVII.  INDEMNITY.  LESSEE agrees to indemnify and save LESSOR harmless
          ----------------
from and against any and all claims, demands, suits, damages, expenses and
liabilities brought by a third party to the extent that any injury to or death
of any person or any damage to or loss of property arises out of the sole
negligence of the LESSEE.

          XVIII.  CLOSURE REQUIREMENTS.  Upon final legal termination, legal
          ----------------------------
termination prior to expiration of the term of this lease, or formal voluntary
surrender of LESSEE'S rights to store or dispose of low-level radioactive waste
material, LESSOR and LESSEE acknowledge and agree that LESSEE shall perform the
following activities as its sole closure obligation under this lease agreement:

               (1)  burial of all radioactive waste;

               (2)  removal of all surface structures and equipment except
          lighting equipment, fences and gates;

               (3)  all equipment and facilities which cannot be released by
          radiation survey after decontamination will be disposed of, or
          transported from the Site, as radioactive material;

                                        7
<PAGE>
               (4)  backfilling and mounding of all open trenches, without
          exception, in accordance with radioactive material license
          requirements;

               (5)  reduction of radiation levels to 2mR/hr at ground level
          within radioactive burial area;

               (6)  plugging and capping water wells and dry wells;

               (7)  the East access gate to the radiological burial facility
          will be sealed shut;

               (8)  installing alarms on all remaining gates which will activate
          in Deputy Sheriff's Office in Beatty when gat is opened;

               (9)  replacement of faulty or damaged fencing;

               (10) replacement of any illegible or damaged warning signs; and

               (11) final radiation survey and written report to LESSOR which is
          confirmed by LESSOR.

          LESSOR shall reserve the right to waive any or all of the above Site
closure conditions.

          XIX.  RESPONSIBILITY FOLLOWING TERMINATION.  The parties hereby
          ------------------------------------------
expressly agree that, subject to the closure requirements of the preceding
paragraph, upon expiration or earlier termination of this lease, all materials
buried at the Site prior to and subsequent to such expiration or termination
shall be the sole and exclusive responsibility of LESSOR.

          XX.  ACCESS TO PREMISES.  The LESSOR or any person authorized by it
          -----------------------
shall have access to the leased premises during LESSEE'S regular business hours,
or any other time upon giving reasonable notice, for any lawful purpose.

          XXI.  SOVEREIGN AUTHORITY.  It is understood that none of the terms of
          -------------------------
this lease, nor any of the covenants herein contained, shall operate to restrain
the LESSOR from fulfilling its responsibilities in its capacity as sovereign of
the State of Nevada, including, but not limited to, a determination on the part
of the sovereign that a public emergency exists and that immediate State action
be formally determined as necessary.  Should the aforestated State action be
formally determined as necessary, LESSOR shall, as provided in NRS 459.130 or
any amendment thereto, upon LESSEE'S application, promptly afford LESSEE an
opportunity to be heard and to present proof that such a condition or activity
does not warrant the original determination.

                                        8
<PAGE>
          XXII.  HEARINGS.  All hearings for all alleged violations under this
          ---------------
lease other than those specifically stated otherwise or provided for by law
shall be submitted to formal hearing before a qualified hearing officer
appointed by the Department of Human Resources of the State of Nevada.  Within
twenty (20) days following the final conclusion of the hearing, the hearing
officer shall make a report and ruling which shall contain findings of fact and
conclusions of law.  The hearing officer shall serve a copy of his report and
ruling upon all parties of record to the proceeding.

          Any party to the hearing may be represented by counsel, may make oral
or written argument, offer testimony, cross-examine witnesses, or take any
combination of such actions.  The record of such hearing shall be open to public
inspection.

          XXIII.  NOTICES.  All notices, demands, requests, consents, approvals,
          ---------------
cancellations and/or other communications which may be or are required to be
given by either party to the other under this lease shall be in writing and
shall be deemed to have been sufficiently given for all purposes when delivered
or mailed by certified or registered mail, postage prepaid.  Notices to the
LESSOR shall be given by mailing to the State of Nevada, Department of Human
Resources, Capitol Complex, Carson City, Nevada, 89710.  Notice to the LESSEE
shall be given by mailing to Nuclear Engineering Company, Inc., 9200 Shelbyville
Road, Louisville, Kentucky, 40222.

          XXIV.  HEADINGS.  The provision headings appearing in this lease have
          ---------------
been inserted for the purpose of convenience and ready reference.  They do not
purport to, and shall not be deemed to define, limit or extend the scope or
intent of the provisions to which they pertain.

          XXV.  APPEALS.  It is understood that none of the provisions contained
          -------------
in this lease shall affect the LESSEE'S right to appeal any of the rulings or
regulations of the LESSOR or the Nevada State Board of Health in the manner
prescribed by law.

          XXVI.  EFFECT OF LEASE.  Execution of this lease by LESSOR or LESSEE
          ----------------------
shall terminate and replace any presently existing lease between the LESSEE and
any other party related to the premises described herein.

          XXVII.  ENTIRE AGREEMENT.  The lease embodies the entire agreement
          ------------------------
between the parties.  It may not be modified or terminated except as provided
herein or by other written agreement between the parties.

                                        9
<PAGE>
          IN WITNESS WHEREOF, the parties have hereunto set their hands the day
and year in this lease first above written.

PPROVED THIS 12TH day of                       STATE OF NEVADA
May, 1977.                                     DEPARTMENT OF HUMAN RESOURCES

--------------------------------               ------------------------------
GOVERNOR OF THE STATE OF NEVADA                ROGER S. TROUNDAY, DIRECTOR
                                                    LESSOR

APPROVED AS TO FORM THIS 6TH                   NUCLEAR ENGINEERING COMPANY, INC.
day of May, 1977.

ROBERT LIST
ATTORNEY GENERAL                               ---------------------------------
                                               JAMES N. NEEL, PRESIDENT
                                                    LESSEE

BY:                                            (Corporate Seal)
   ---------------------------------
   D. MICHAEL CLASEN
   DEPUTY ATTORNEY GENERAL

                                               Attest:

                                               ---------------------------------
                                               ASSISTANT SECRETARY

                                       10
<PAGE>
                               ADDENDUM AGREEMENT
                               ------------------

          This Addendum Agreement made and entered into this the seventh day of
December, 1979, by and between the State of Nevada, Department of Human
Resources, hereinafter called "LESSOR," and Nuclear Engineering Company, Inc.,
hereinafter called "LESSEE," a corporation duly organized and existing under the
laws of the State of California, authorized to do business in the State of
Nevada, having its registered office in Beatty, Nevada, and authorized to engage
in the business of receiving, possessing, processing, repackaging, using,
storing and disposing of radioactive wastes and materials by License No.
13-11-0043-02 issued by the Nevada State Health Division, and being further
authorized by appropriate permit issued in accordance with applicable provisions
of law to engage in the disposal of chemical and toxic wastes and materials.

                                   WITNESSETH:
                                   ----------

          WHEREAS, LESSOR and LESSEE entered into a Lease dated May 1, 1977,
whereby LESSOR leased to LESSEE certain real property in Nye County, Nevada,
hereinafter known as the "Site";

          WHEREAS, LESSOR and LESSEE have determined that additional monetary
consideration in the form of increased yearly rental payments Need to be
provided in order that LESSOR may further ensure that it has sufficient
personnel to continue and administer its on-site surveillance of that portion of
the Site pertaining solely to low-level radioactive waste; and

          WHEREAS, LESSOR and LESSEE have mutually agreed to raise the per cubic
foot Perpetual Care and Maintenance payments for low-level radioactive waste
paid by LESSEE in order to further accelerate the growth of the Perpetual Care
and Maintenance Trust Fund maintained by the LESSOR;

          NOW, THEREFORE, in consideration of the payments reserved herein and
the mutual covenants made by the parties, it is agreed as follows:

          I.  That Section I, entitled RENTAL-LICENSE FEE, of the May 1, 1977
Lease be amended in part in that the yearly rental of Ten Thousand Dollars
($10,000) per year shall now read Twenty Thousand Dollars ($20,000) per year
effective the date of this Addendum Agreement.  In all other respects, Section
I, entitled RENTAL-LICENSE FEE, of the May 1, 1977 Lease shall remain unchanged.
LESSOR acknowledges the receipt of LESSEE'S check number 21861, dated December
7, 1979, in the amount of Ten

                                       11
<PAGE>
Thousand Dollars ($10,000) and agrees to prorate this amount over the present
remaining annual rental period with the remaining balance to be applied towards
the next annual rental period.

          II.  That Section XI, entitled FEES FOR PERPETUAL CARE AND
MAINTENANCE, of the May 1, 1977 Lease be amended in part, in that the sum of
thirteen cents (13 ) for each and every cubic foot of low-level radioactive
waste materials shall now read twenty-five cents (25 ) for each and every cubic
foot of low-level radioactive waste materials.  However, the LESSOR and LESSEE
agree that in recognition of LESSEE'S current contractual commitments, that the
per cubic foot increase from thirteen cents (13 ) to twenty-five cents (25 )
shall not be immediately effective, but rather shall take effect on the
twenty-fifth day of February, 1980.  In all other respects, Section XI, entitled
FEES FOR PERPETUAL CARE AND MAINTENANCE, of the May 1, 1977 Lease shall remain
unchanged.

          III.  This Addendum Agreement is annexed to and is a part of the May
1, 1977 Lease and is governed by and hereby becomes subject to all of its
provisions and promises, except to the extent that those provisions and/or
promises are expressly qualified, modified or alerted by this Addendum
Agreement.  The May 1, 1977 Lease, as amended by this Addendum Agreement,
remains in full force and effect.

          IV.  This Addendum Agreement embodies the entire agreement between the
parties.  It may not be modified or terminated except as provided herein or by
other written agreements between the parties.

          IN WITNESS WHEREOF, the parties have hereunto set their hands the day
and year in this Lease first above written.

APPROVED:                                    STATE OF NEVADA
                                             DEPARTMENT OF HUMAN RESOURCES

-----------------------------------          -----------------------------------
GOVERNOR OF THE STATE OF NEVADA              RALPH R. DISIBIO, DIRECTOR
                       LESSOR

APPROVED AS TO FORM:                         NUCLEAR ENGINEERING CO., INC.

RICHARD BRYAN
ATTORNEY GENERAL                             JAMES N. NEEL, PRESIDENT

                                                LESSEE

                                       12
<PAGE>
By:
   -------------------------------------------
   BRYAN NELSON
   DEPUTY ATTORNEY GENERAL

                                               Attest:
                     -------------------------

                     -------------------------
                     ------------------------- DAVID R. HAFENDORFER
                     ------------------------- ASSISTANT SECRETARY
    (affix Corporate Seal)

                                       13
<PAGE>
                               ADDENDUM AGREEMENT
                               ------------------

          This Addendum Agreement made and entered into this the twenty-eighth
day of March, 1988, by and between the STATE OF NEVADA, Department of Human
Resources, hereinafter called "LESSOR," and US ECOLOGY, Inc., hereinafter called
"LESSEE," a corporation duly organized and existing under the laws of the State
of California, authorized to do business in the State of Nevada, having its
registered office in Beatty, Nevada, and authorized to do engage in the business
of receiving, possessing, processing, repackaging, using, storing and disposing
of radioactive wastes and materials by License No. 13-11-0043-02, as amended,
issued by the Nevada State Health Division.

                                   WITNESSETH:
                                   ----------

          WHEREAS, LESSOR and LESSEE entered into a Lease dated May 1, 1977,
whereby LESSOR leased to LESSEE certain real property in Nye County, Nevada,
hereinafter known as "Site"; and

          WHEREAS, LESSOR and LESSEE entered into an Addendum Agreement dated
December 7, 1979, which amended in part the May 1, 1977 Lease; and

          WHEREAS, LESSOR and LESSEE have mutually agreed to raise the per cubic
foot Perpetual Care and Maintenance payments for low-level radioactive waste
paid by LESSEE in order to further accelerate the growth of the Perpetual Care
and Maintenance Trust Fund maintained by the LESSOR.

          NOW, THEREFORE, in consideration of the payments reserved herein and
the mutual covenants made by the parties, it is agreed as follows:

          I.  That Section XI, entitled FEES FOR PERPETUAL CARE AND MAINTENANCE,
of the May 1, 1977 Lease, as amended by the December 7, 1979 Addendum, be
further amended in that the sum of TWENTY-FIVE CENTS ($0.25) for each and every
cubic foot of low-level radioactive waste materials shall now read TWO DOLLARS
($2.00) for each and every cubic foot of low-level radioactive waste materials.
However, the LESSOR and LESSEE agree that the new fee shall be effective on the
first day of April, 1988.  In al other respects, Section XI, entitled FEES FOR
PERPETUAL CARE AND MAINTENANCE, of the May 1, 1977 Lease, as amended by the
December 7, 1979 Addendum, shall remain unchanged.

          II.  That Section XII, entitled PREPAYMENT, of the May 1, 1977 Lease
be amended in its entirety to read as follows:

                                       14
<PAGE>
               XII.  QUARTERLY  PAYMENTS.  LESSEE  shall make Perpetual Care and
                     -------------------
          Maintenance  payments  on  a  quarterly  basis and in the contribution
          rates set forth in Section XI as amended. Specifically, the TWO DOLLAR
          ($2.00)  perpetual  care  and  maintenance  fee  for radioactive waste
          materials  and  the SEVEN CENTS ($0.07) perpetual care and maintenance
          fee  for chemical and toxic waste materials shall be paid to the State
          on a quarterly basis for the quarters ending January15, April 15, July
          15,  and  October  15, provided, however, that LESSEE shall have up to
          forty-five (45) days from the end of each quarter to secure collection
          of  the  fees  from its customers and subsequently make payment to the
          LESSOR.

               Furthermore,  LESSOR  and  LESSEE agree that LESSEE shall receive
          full  credit  and  appropriate adjustments for any and all prepayments
          made  prior to the execution of this lease document. In the event this
          Lease  is  terminated for whatsoever reason, LESSOR agrees that LESSEE
          shall  receive  a  full  refund for any and all prepayment amounts not
          previously  debited  by  LESSOR  in  accordance  with  all  applicable
          provisions  of  this  Lease.

               The  LESSOR  and  LESSEE  acknowledge  and agree that the primary
          purpose  of  LESSEE'S  payment  to  LESSOR of the cubic foot charge on
          low-level radioactive, chemical and toxic wastes disposed of or buried
          at  the  Site  is  to  provide  funds for the implementation of proper
          safeguards  for  the  public  health and safety upon expiration of the
          lease  term  or  extension  thereof  and  final  closure.

          III.  This Addendum Agreement is annexed to and is a part of the May
1, 1977 Lease, as amended.  The sole purpose of the Addendum is for purposes
stated herein and its execution by the undersigned parties is intended only to
address the fee payment schedules and Perpetual Care and Maintenance fees as set
forth in the May 1, 1977 Lease, as amended.

          IV.  This Addendum Agreement embodies the entire agreement between the
parties.  It may not be modified or terminated except as provided herein or by
other written agreements between the parties.

                                       15
<PAGE>
          IN WITNESS WHEREOF, the parties have hereunto set their hands the day
and year in this Lease first above written.

APPROVED:                                 STATE OF NEVADA ("LESSOR")
                                          DEPARTMENT OF HUMAN RESOURCES

------------------------------------      --------------------------------------
RICHARD H. BRYAN, GOVERNOR                Jerry Griepentrog, Director

                                           US ECOLOGY, INC. ("LESSEE")
                       --------------------

                       --------------------
                                           Thomas S. Baer, Vice President
                       --------------------
APPROVED AS TO FORM:

BRYAN MCKAY
ATTORNEY GENERAL

BY:
   ----------------------------------------
   Bryan M. Nelson, Chief Deputy

                                           ATTEST:
                       --------------------

                       --------------------
                                           Robert L. Ash, Assistant Secretary
                       --------------------

                                (CORPORATE SEAL)

                                       16
<PAGE>
                                    EXHIBIT P
                                    ---------

                               ADDENDUM AGREEMENT
                               ------------------

          This Addendum Agreement made and entered into this ____ day of
September, 1993, by and between the State of Nevada, Department of Human
Resources, (hereinafter collectively referred to as "LESSOR"), the State of
Nevada Department of Conservation and Natural Resources, and US Ecology, Inc., a
corporation duly organized and existing under the laws of the State of
California, authorized to do business in the State of Nevada, and having its
registered office in Beatty, Nevada (hereinafter "LESSEE").

                                   WITNESSETH:
                                   ----------

          WHEREAS, LESSOR and LESSEE entered into a Lease dated May 1, 1977
(hereinafter the "May 1, 1977" Lease), whereby LESSOR leased to LESSEE certain
real property in Nye County, Nevada, hereinafter known as the "Site"; and

          WHEREAS, LESSOR and LESSEE entered into an Addendum Agreement dated
December 7, 1979, which amended in part the May 1, 1977 Lease; and

          WHEREAS, LESSOR and LESSEE entered into an Addendum Agreement dated
March 28, 1988, which amended in part the May 1, 1977 Lease; and

          WHEREAS, LESSOR and LESSEE entered into a Settlement Agreement dated
September ____, 1993, pursuant to which LESSOR and LESSEE agreed in part to
amend the May 1, 1977 Lease as set forth herein.

          NOW THEREFORE, in consideration of the premises, covenants, and mutual
promises set forth herein, and other good and valuable consideration, the
sufficiency and receipt of which are hereby mutually acknowledged LESSOR and
LESSEE agree as follows:

          I.     That the definition of the term LESSEE provided in the preamble
to the May 1, 1977 Lease and used therein shall be amended by deleting any
reference to the State of Nevada Department of Human Resources and by Adding the
State of Nevada Department of Conservation and Natural Resources.  It is the
express intent of LESSEE and LESSOR that the State of Nevada Department of
Conservation and Natural Resources will thereby become a party to the May 1,
1977 Lease and that the State of Nevada Department of Human Resources will no
longer be a party thereto.

                                       17
<PAGE>
          II.     That Section II, entitled RENEWAL OF LEASE, of the May 1, 1977
Lease be amended in its entirety to read as follows:

          II.  RENEWAL  OF LEASE. The term of this lease shall be extended as US
          ----------------------
          Ecology determines, in its sole discretion, for an additional ten (10)
          year  term  or  until  such  time  that  the Site has reached its full
          capacity  if  the Site does so prior to the expiration of the ten (10)
          year  term, if, prior to six (6) months before the end of the term but
          not  before nineteen (19) years from the effective date of this lease,
          the LESSEE provides written notice to the LESSOR that it is exercising
          its  option  to  extend  the  lease  term  pursuant to this paragraph.

          III.     That Section XI, entitled FEES FOR PERPETUAL CARE AND
MAINTENANCE, of the May 1, 1977 Lease, as amended by the December 7, 1979
Addendum and by the March 28, 1988 Addendum, be further amended, in that the sum
of seven cents for each and every cubic foot of chemical and toxic waste
materials shall now read $2.80 per ton + 7 cents per cubic foot of chemical and
toxic waste materials.  However, the LESSOR and LESSEE agree that the fee shall
be effective on the 1st day of October, 1993.  LESSOR and LESSEE further agree
that the following sentence be added to the end of the first paragraph of
Section XI of May 1, 1977 Lease, as amended by the December 7, 1979 Addendum and
by the March 28, 1988 Addendum:

          LESSOR  and  LESSEE  hereby  agree  that  the sole purpose of LESSEE'S
          payment  to  LESSOR  of the fee $2.80 per ton + 7 cents per cubic foot
          charged  for  chemical  and  toxic waste disposed of at the Site is to
          provide  LESSOR  funds  for  the perpetual care and maintenance of the
          chemical  and  toxic  waste  portion  of  the  Site.

In all other respects, Section XI of the May 1, 1977 Lease, as amended by the
December 7, 1979 Addendum and by the March 28, 1988 Addendum, be further
amended, in that the reference to the seven cents (7 ) perpetual care and
maintenance fees for chemical and toxic waste materials shall now read $2.80 per
ton + 7 cents per cubic foot of chemical and toxic waste materials.

          V.     That the following additional Section XXVIII be added to the
May 7, 1977 Lease, as amended by the December 7, 1979 Addendum and by the March
28, 1988 Addendum:

          XXVIII. FEES FOR HAZARDOUS WASTE MANAGEMENT PROGRAM. The LESSEE agrees
          ---------------------------------------------------
          to  pay  LESSOR  the sum of two and seventy-six/one hundredths dollars
          ($2.76)  for  every  ton of chemical and toxic waste material which is
          disposed  of at the Site. LESSOR and LESSEE hereby agree that the sole
          purpose of LESSEE'S payment to LESSOR of such fee is to provide LESSOR
          funds  for  the State of Nevada's hazardous waste management programs.

                                       18
<PAGE>
          VI.     Sections III and VI of the May 1, 1977 Lease are amended to
delete reference to the State Board of Health and the State Health Officer,
respectively.

          VII.     This Addendum Agreement is annexed to and is a part of the
May 1, 1977 Lease, as amended, and is governed by and hereby becomes subject to
all of its provisions and promises, except to the extent that those provisions
and/or promises are expressly qualified, modified or altered by this Addendum
Agreement.  The May 1, 1977 Lease, as amended hereby, remains in full force and
effect.

          VIII.     This Addendum Agreement embodies the entire agreement
between the parties.  It may not be modified or terminated except as provided
herein or by other written agreements between the parties.

                                       19
<PAGE>
September 17, 1996

Mr. Peter G. Morros, P.E.
Director
Nevada Department of Conservation
   and Natural Resources
123 West Nye Lane
Carson City, Nevada  89710

Subject:     Notice of Lease Renewal
             -----------------------

Dear Mr. Morros:

In accordance with the lease as amended between the State of Nevada, Department
of Conservation and Natural Resources, and US Ecology, Inc. for certain real
property located in Nye County, I am pleased to inform you of our decision to
renew the lease for an additional ten (10) year term or until such time that the
Site has reached its full capacity if the Site does so prior to the expiration
of the ten (10) year term.

Sincerely,

J. K. Lemley
Chairman and Chief Executive Officer

cc:  L. H. Dodgion, Administrator, Division of Environmental Protection
     Vern Rosse, Assistant Administrator, Division of Environmental Protection
     David Emme, Chief, Bureau of Waste Management
     Jeffrey C. Dennison, P.E., Supervisor, RCRA Facilities
     William J. Frey, Deputy Attorney General
     Don Brady, Senior Vice President, Chemical Operations
     Zaki Naser, Facility Manager
     Phil Chattin, General Counsel
     Lawrence Levine, Esquire

                                       20
<PAGE>EXHIBIT 10.55 MANAGEMENT INCENTIVE PLAN

                             AMERICAN ECOLOGY CORPORATION
                             ----------------------------

                              MANAGEMENT INCENTIVE PLAN
                              -------------------------

     1.   ESTABLISHMENT,  PURPOSE  AND  DURATION.  The  American  Ecology
Corporation  Management  Incentive  Plan  (the  "Plan") is hereby established by
American  Ecology  Corporation  (the  "Company").  The purpose of the Plan is to
promote  the  success and enhance the value of the Company by providing selected
executive  officers  with  the  opportunity  to  participate in the creation and
sustaining  of  significant shareholder value over an extended period and to set
annual  compensation  of such officers at levels commensurate with the Company's
size,  locale  and  such officers' duties.  The Plan is adopted, effective as of
January  1,  2003 (the "Effective Date"), and shall remain in effect, subject to
the  right  of  the  Board of Directors of the Company (the "Board") to amend or
terminate  the  Plan  at  any  time.

     2.   ADMINISTRATION.  The  Plan  shall  be administered by the Compensation
Committee  of  the Board, or such other committee designated by the Board, or in
the  absence  of  such Committee, by the full Board (the Committee, or the Board
acting  in  the  absence  of  a  Committee shall hereafter be referred to as the
"Committee").

     3.   ELIGIBILITY.  Only  those  executive  officers  designated  by  the
Committee  shall  participate  in this Plan and shall be a "Participant" in this
Plan.  References  herein  to  an  "executive officer" shall refer to only those
executive  officers  who  have been selected for participation in the Plan.  The
Committee  will  provide  each  Participant  with  an  agreement evidencing such
Participant's  share of the incentive opportunity bonus pool (the "Participation
Agreement").

     4.   AWARDS.

          (a)     The Company has targeted generation of at least $12 million of
annual,  pre-tax  operating  income  by  2005  and in each year thereafter.  For
purposes  of  computing  any amounts funded or paid hereunder, pre-tax operating
income shall be determined in the same manner used in the Company's planning and
budgeting  process,  and shall include expenses related to amounts payable under
this  Plan.

          (b)     In  the  event  the Company achieves in the 2003, 2004 or 2005
fiscal  years  annual  pre-tax  operating  income  of  at least $12 million (the
"Income  Goal"),  the  Company  will establish a $3.375 million bonus pool.  The
fiscal  year  in which such Income Goal is achieved is referred to herein as the
"Attainment  Year".  In  the  event  the  Income  Goal  is not achieved, but the
Company's  annual,  pre-tax  operating  income is at least $9.0 million in 2005,
then  the  bonus  pool will be established at $1.6875 million (50% for achieving
75%  of  the  Income  Goal),  and will be increased on a straight line basis for
pre-tax, operating income above $9.0 million up to the $12 million target.  Such
income level between $9.0 million and $12.0 million shall become the Income Goal
for  subsequent  years,  and  2005  shall  be  the  Attainment  Year.  Upon  the

<PAGE>
Company's  establishment  of the bonus pool as set forth above, each Participant
shall  be eligible to receive the portion of such bonus pool allocated to him by
the  Committee.

          (c)     In  order  to  assure  that  the Income Goal is sustainable in
future  years, the bonus pool (and all resulting bonus payments to Participants)
will  be  paid  in  three  substantially  equal  installments, the first payable
promptly  upon  availability  of  audited  annual  financial  results  for  the
Attainment Year; the second payable promptly upon availability of audited annual
financial  results for the fiscal year immediately following the Attainment Year
if  the  Income  Goal  is  achieved in the fiscal year immediately following the
Attainment  Year; and the remainder promptly upon availability of audited annual
financial  results  for  the  second  fiscal  year  immediately  following  the
Attainment  Year,  if  the  Income  Goal  is  achieved in the second fiscal year
immediately  following the Attainment Year.  In the event the Income Goal is not
achieved  in  the  first  fiscal year following the Attainment Year, that year's
portion  of  the  bonus  pool  (and  all  resulting  bonus  payments  for  all
Participants)  will  not  be  paid,  but will be carried forward and paid in the
subsequent  year,  if the Company's aggregate, two-year pre-tax operating income
at  the end of the second year following the Attainment Year is at least 200% of
the  Income  Goal  applicable  for such second year.  In the event the Company's
aggregate,  two-year  pre-tax  operating  income  at  the end of the second year
exceeds $18.0 million but is not at least 200% of the Income Goal applicable for
such  second  year,  the portion of the balance remaining in the bonus pool that
will  be paid out for such second year will be computed on a straight line basis
(with $18 million being zero percent) for aggregate, two-year pre-tax, operating
income above $18.0 million up to the amount which equals 200% of the Income Goal
applicable  for  such  second  year.

     5.   PAYOUTS.  All  awards  shall  be  paid  in  cash,  unless  payment  is
deferred  at  the election of the Participant under a deferred compensation plan
then  maintained  by  the  Company.

     6.   TERMINATION.

          (a)     Except  as  provided  in the remainder of this Section 6(a), a
Participant  must  be employed by the Company on the date of payment in order to
be  entitled to such payment.  If a Participant's employment terminates prior to
the  end  of the Attainment Year due to death, disability, or termination by the
Company  without  Cause  (as  defined  in Paragraph 6(b)), or termination by the
Participant with Good Reason (as defined in Paragraph 6(c)) then the Participant
will  share  in any subsequent bonus pool payouts.  The share will be determined
based  on  the  number of full and partial months elapsed in the period from the
Effective  Date  to  the termination of such Participant's employment divided by
the  number of months from the Effective Date to the end of the Attainment Year.
For  example,  if such an employment termination occurs on December 31, 2004 and
2005  is  the  Attainment  Year,  the  Participant  (or his beneficiary) will be
entitled  to  receive  two-thirds of any payout he otherwise would have received
had  he  remained  employed.

          (b)     "Cause"  shall  mean,  with  respect  to  termination  of  a
Participant's employment, the occurrence of any one or more of the following, as
determined  by  the  Committee,  in  the  exercise  of good faith and reasonable
judgment:

                                      -2-
<PAGE>
               (i)  In  the case where there is no employment, change in control
     or  similar  agreement in effect between the Participant and the Company at
     the  time  of the grant of the bonus opportunity, or where there is such an
     agreement but the agreement does not define "cause" (or similar words) or a
     "cause"  termination  would  not  be permitted under such agreement at that
     time  because  other  conditions  were not satisfied, the termination of an
     employment  arrangement  by  reason of a determination by two-thirds of the
     members  of  the Board voting that such Participant: has engaged in willful
     neglect  (other  than neglect resulting from his incapacity due to physical
     or  mental  illness) or misconduct; has engaged in conduct the consequences
     of  which  are  materially adverse to the Company, monetarily or otherwise;
     has  materially  breached the terms of any employment, change in control or
     similar  agreement  in  effect between the Participant and the Company, and
     such  breach  persisted  after  notice  thereof  from  the  Company  and  a
     reasonable  opportunity  to  cure;  or  has been convicted of (or has plead
     guilty  or  no  contest  to)  any felony other than a traffic violation; or

               (ii) In  the case where there is an employment, change in control
     or  similar  agreement in effect between the Participant and the Company at
     the  time  of  the  grant of the bonus opportunity that defines "cause" (or
     similar  words)  and  a  "cause"  termination would be permitted under such
     agreement  at  that time, the termination of an employment that is or would
     be  deemed  to  be  for  "cause"  (or  similar  words)  as  defined in such
     agreement.

          (c)     "Good  Reason"  shall  mean  the  occurrence  of  any  of  the
following  without  Participant's  prior  written consent during the term of his
employment  with the Company, which occurrence continues for ten (10) days after
written  notice  thereof  from  the  Participant  to  the  Company:

               (i)  In  the case where there is no employment, change in control
     or  similar  agreement in effect between the Participant and the Company at
     the  time  of the grant of the bonus opportunity, or where there is such an
     agreement,  but  the  agreement  does  not define "good reason" (or similar
     words)  or  a  "good  reason" termination would not be permitted under such
     agreement  at  that  time  because other conditions were not satisfied, the
     termination  of an employment arrangement by the Participant for any of the
     following  reason:

                    (1)  Any  material  adverse  change in Participant's status,
          title,  authorities  or  responsibilities  which represents a demotion
          from  such  status,  title,  authorities or responsibilities which are
          materially  inconsistent with his then current status, title, position
          or  work  responsibilities,  or  any  removal  of Participant from, or
          failure to appoint, elect, reappoint or reelect Participant to, any of
          his  positions,  except  in  connection  with  the  termination of his
          employment  with  or  without  Cause,  or  as a result of his death or
          disability, provided, however, that no change in title, authorities or
          responsibilities  customarily  attributable  solely  to  the  Company
          ceasing  to  be  a  publicly  traded corporation shall constitute Good
          Reason  hereunder;

                                      -3-
<PAGE>
                    (2)  The exclusion of Participant in any incentive, bonus or
          other  compensation  plan  in  which Participant then participates in,
          unless  an equitable arrangement (embodied in an ongoing substitute or
          alternative  plan)  has  been  made  with  respect  to  the failure to
          continue  such  plan,  or  the  failure  by  the  Company  to continue
          Participant's  participation  therein,  or  any  action by the Company
          which would directly or indirectly materially reduce his participation
          therein  or  reward  opportunities thereunder; provided, however, that
          Participant  continues  to  meet all eligibility requirements thereof.
          Notwithstanding  the  foregoing, this provision shall not apply to the
          exclusion of Participant in any incentive, bonus or other compensation
          plan  in  which  Employee  then  participates  to the extent that such
          termination  is  required  by  law.

                    (3)  Any amendment, modification or termination of this Plan
          which materially and adversely affects Participant's rights hereunder.

                    (4)  The  failure  by  the Company to continue in effect any
          employee  benefit  plan  (including any medical, hospitalization, life
          insurance  or  disability  benefit  plan  in  which  Participant
          participates),  or any material fringe benefit or prerequisite enjoyed
          by  him  as  of  the  Effective  Date, unless an equitable arrangement
          (embodied  in an ongoing substitute or alternative plan) has been made
          with  respect  to the failure to continue such plan, or the failure by
          the  Company  to  continue Participant's participation therein, or any
          action  by  the  Company which would directly or indirectly materially
          reduce  his  participation therein or reward opportunities thereunder,
          or  the  failure  by  the Company to provide him with the then current
          benefits  to  which  he  is entitled under any employment agreement or
          otherwise;  provided,  however, that Participant continues to meet all
          eligibility  requirements thereof. Notwithstanding the foregoing, this
          provision  shall  not  apply  to  the  exclusion of Participant in any
          employee  benefit  plan  in which Participant then participates to the
          extent that such termination is required by law, or to such failure to
          continue  any  employee  benefit  plan  or  fringe  benefit,  or  the
          Participant's  participation  therein or reward opportunity thereunder
          if  such failure to continue such plan or benefit is applicable to the
          Company's  executive  officers  and/or  employees  generally.

                    (5)  Any  material breach by the Company of any provision of
          his  employment  agreement,  if  any;

                    (6)  The  failure  of  the  Company  to  obtain a reasonably
          satisfactory  agreement from any successor or assign of the Company to
          assume  and  agree  to  perform Participant's employment agreement, if
          any,  as  contemplated  in  such  employment  agreement;  or

                    (7)  termination by a Participant during the thirty (30)-day
          period  immediately following the first anniversary of the date of any
          Change  in  Control  (as  defined  herein)  of  the  Company.

                                      -4-
<PAGE>
               (ii) In  the case where there is an employment, change in control
     or  similar  agreement in effect between the Participant and the Company at
     the  time  of the grant of the bonus opportunity that defines "good reason"
     (or similar words) and a "good reason" termination would be permitted under
     such  agreement  at  that  time,  the  termination  of an employment by the
     Participant  that is or would be deemed to be for "good reason" (or similar
     words)  as  defined  in  such  agreement.

     7.   CHANGE  IN  CONTROL.

          (a)     In  the  event of a Change in Control (as defined in Paragraph
7(b)), on or prior to December 31, 2005, the bonus pool will be established on a
pro  rata  basis based on the number of months elapsed in the performance period
divided  by 36, and each Participant shall receive the amount of such bonus pool
allocated to him within 30 days after the closing of the transaction giving rise
to  such Change in Control.  The proration will be based on the actual, trailing
twelve months' pre-tax operating income divided by $12 million.  For example, if
the  Change  in  Control  occurs  in 2003 and the trailing twelve months pre-tax
operating income is $6 million, then the bonus pool will be established at a 50%
level.  In  the  event  of a Change in Control after December 31, 2005, then any
unpaid  bonus pool shall be paid out in full within 30 days after the closing of
the  transaction  giving  rise  to  such  Change  in  Control.

          (b)     "Change  in  Control"  shall  mean:

               (i)  the consummation of a merger or consolidation of the Company
     with  or into another entity or any other corporate reorganization, if more
     than  50%  of  the  combined  voting  power  of the continuing or surviving
     entity's  securities  outstanding  immediately  after  such  merger,
     consolidation  or  other  reorganization  is  owned by persons who were not
     stockholders of the Company immediately prior to such merger, consolidation
     or  other  reorganization; provided, however, that a public offering of the
     Company's securities shall not constitute a corporate reorganization;

               (ii) the  sale,  transfer,  or  other  disposition  of  all  or
     substantially all of the Company's assets;

               (iii)  a  change  in the composition of the Board, as a result of
     which  fewer  than  50% of the incumbent directors are directors who either
     (x)  had  been  directors of the Company on the date 24 months prior to the
     date  of  the  event that may constitute a Change in Control (the "original
     directors")  or  (y)  were elected, or nominated for election, to the Board
     with  the  affirmative votes of at least a majority of the aggregate of the
     original  directors who were still in office at the time of the election or
     nomination and the directors whose election or nomination was previously so
     approved;  or

               (iv) any  transaction  as  a  result  of  which any person is the
     "beneficial  owner"  (as  defined  in  Rule  13d-3 under the Exchange Act),
     directly or indirectly, of securities of the Company representing more than
     50% of the total voting power represented by the Company's then outstanding
     voting  securities.  For purposes of this Paragraph (iv), the term "person"
     shall have the same meaning as when used in sections 13(d) and 14(d) of the
     Exchange  Act,  but  shall  exclude  (x)  a  trustee  or  other  fiduciary

                                      -5-
<PAGE>
     holding  securities under an employee benefit plan of the Company and (y) a
     corporation owned directly or indirectly by the stockholders of the Company
     in  substantially  the  same  proportions  as their ownership of the common
     stock  of  the  Company.

     Notwithstanding  the foregoing, a transaction shall not constitute a Change
in  Control  if  its  sole  purpose  is  to  change  the  state of the Company's
incorporation or to create a holding company that will be owned in substantially
the  same  proportions  by  the  persons  who  held  the  Company's  securities
immediately  before  such  transaction.

     8.     OTHER  PROVISIONS.  Bonus  opportunities  granted under the Plan may
also be subject to such other provisions (whether or not applicable to the bonus
opportunity granted to any other Participant) as the Committee determines on the
date  of  grant  to  be  appropriate, including, without limitation, making such
bonus  opportunity  contingent  upon  execution  by  such  Participant  of  a
Participation  Agreement  or similar agreement containing restrictive covenants,
in  addition  to such other provisions specifically provided for under the Plan.

     9.     AMENDMENT.  The  Plan  may be amended, modified or terminated by the
Board.

     10.     NO  RIGHT TO CONTINUED EMPLOYMENT.  A Participant's rights, if any,
to  continue  to  serve the Company as an officer, employee, or otherwise, shall
not be enlarged or otherwise affected by his or her designation as a Participant
under  the  Plan, and the Company reserves the right to terminate the employment
of  any  Participant  at  any  time.

     11.     NO RIGHT, TITLE, OR INTEREST IN COMPANY ASSETS.  Participants shall
have  no right, title, or interest whatsoever in or to any investments which the
Company  may  make to aid it in meeting its obligations under the Plan.  Nothing
contained  in  the  Plan,  and no action taken pursuant to its provisions, shall
create  or  be  construed  to  create  a  trust  of  any  kind,  or  a fiduciary
relationship  between  the  Company  and  any  Participant,  beneficiary,  legal
representative  or  any  other person.  To the extent that any person acquires a
right  to  receive payments from the Company under the Plan, such right shall be
no  greater than the right of an unsecured general creditor of the Company.  All
payments  to  be  made  hereunder  shall  be  paid from the general funds of the
Company  and no special or separate fund shall be established and no segregation
of  assets  shall  be made to assure payment of such amounts except as expressly
set  forth  in the Plan.  The Plan is not intended to be subject to the Employee
Retirement  Income  Security  Act  of  1974,  as  amended.

     12.     WITHHOLDING.  The  Company  shall  have  the power and the right to
deduct  or withhold, or require a Participant to remit to the Company, an amount
sufficient  to  satisfy  Federal,  state  and  local  taxes  (including  such
Participant's  FICA  obligations) required by law to be withheld with respect to
any  taxable  event  arising  as  a  result  of  the  Plan.

     13.     BENEFICIARIES.  The Committee shall establish such procedures as it
deems  appropriate for a Participant to designate a beneficiary or beneficiaries
to  whom  any amounts payable in the event of such Participant's death are to be
paid.

     14.     MISCELLANEOUS.  The  Plan  shall  inure  to  the  benefit of and be
binding  upon each successor and assign of the Company.  All obligations imposed
upon  a  Participant,  and all rights granted to the Company hereunder, shall be
binding  upon  such  Participant's  heirs, legal

                                      -6-
<PAGE>
representatives  and  successors. The Plan and all awards made and actions taken
hereunder  shall be governed by and construed in accordance with the laws of the
State of Idaho (other than its provisions respecting choice of law).

     15.   DISPUTE  RESOLUTION.

          (a)     All disputes arising out of this Plan shall be resolved by the
following  alternative  dispute resolution process: (i) the Company shall seek a
fair  and  prompt negotiated resolution with any Participant; but if this is not
possible,  (ii) all disputes shall be resolved by binding arbitration; provided,
                                                                       --------
that during this process, at the request of the Company or any Participant, made
not  later  than 60 days after the initial arbitration demand, the parties shall
attempt  to  resolve  any  dispute  by  non-binding,  third-party  intervention,
including  either  mediation  or  evaluation  or  both  but without delaying the
arbitration  hearing  date.  By  the  adoption  hereof  by  the  Company, and by
becoming a Participant in the Plan, both parties give up their right to have the
dispute  decided  in  court  by  a  judge  or  jury.

          (b)     Any controversy or claim arising out of or connected with this
Plan  shall be decided by arbitration.  In the event the parties cannot agree on
an arbitrator, then the arbitrator shall be selected by the administrator of the
American  Arbitration  Association  ("AAA") office in Salt Lake City, Utah.  The
arbitrator shall be an attorney with at least 15 years' experience in employment
law  in Idaho.  Boise, Idaho shall be the site of the arbitration.  All statutes
of  limitation,  which  would  otherwise  be  applicable,  shall  apply  to  any
arbitration  proceeding  hereunder.  Any  issue  about  whether a controversy or
claim  is  covered  by  this  Plan  shall  be  determined  by  the  arbitrator.

          (c)     The  arbitration  shall  be  conducted in accordance with this
Plan, using as appropriate the AAA Employment Dispute Resolution Rules in effect
on  the date hereof.  The arbitrator shall not be bound by the rules of evidence
or  of  civil  procedure,  but  rather  may  consider  such  writings  and  oral
presentations  as  reasonable  business people would use in the conduct of their
day-to-day  affairs, and may require both parties to submit some or all of their
respective  cases by written declaration or such other manner of presentation as
the arbitrator may determine to be appropriate.  The parties agree to limit live
testimony and cross-examination to the extent necessary to ensure a fair hearing
on  material  issues.

          (d)     The  arbitrator  shall  take such steps as may be necessary to
hold  a  private  hearing within 120 days of the initial request for arbitration
and  to  conclude  the  hearing  within  two  days; and the arbitrator's written
decision shall be made not later than 14 calendar days after the hearing.  These
time  limits  are included in order to expedite the proceeding, but they are not
jurisdictional,  and  the  arbitrator  may  for  good  cause  allow  reasonable
extensions  or  delays,  which shall not affect the validity of the award.  Both
written  discovery  and  depositions  shall  be  allowed.  The  extent  of  such
discovery  will  be  determined  by  the  Company  and  the  Participant and any
disagreements  concerning the scope and extent of discovery shall be resolved by
the  arbitrator.  The  written  decision  shall contain a brief statement of the
claim  (s)  determined and the award made on each claim.  In making the decision
and  award,  the  arbitrator  shall  apply  applicable  substantive  law.  The
arbitrator  may  award  injunctive  relief  or any other remedy available from a
judge,  including  consolidation  of  this  arbitration with any other involving
common  issues  of law or fact which may promote judicial economy, and may award

                                      -7-
<PAGE>
attorneys'  fees and costs to the prevailing party, but shall not have the power
to  award  punitive  or  exemplary  damages.

                                      -8-
<PAGE>

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