Document:

EXHIBIT 10.61

 

 

2012 MANAGEMENT INCENTIVE PLAN

 

I.              PURPOSE

 

The US Ecology, Inc. 2012 Management Incentive Plan (“Plan”) provides a variable component of compensation for certain employees of US Ecology, Inc. and its United States operating facilities (collectively “Company”) for achievement of objectives set by the US Ecology, Inc. Board of Directors during the 2012 calendar year (“Plan Year”).  The Plan is designed to align the interests of employees with those of stockholders and attract, motivate and retain management critical to the long-term success of the Company.

 

II.            ADMINISTRATION

 

The administrator of the Plan shall be the Compensation Committee of US Ecology, Inc.’s Board of Directors (“Administrator”).  The Administrator, or its designee, shall have full power, discretion and authority to, among other things, interpret the Plan and verify all amounts paid under the Plan and establish rules and procedures for its administration, as deemed necessary and appropriate.  The Administrator may rely on opinions, reports or statements of officers of US Ecology, Inc., public accountants and other professionals.  The calculation of any amounts to be paid under the Plan shall be performed by US Ecology, Inc.’s Chief Financial Officer and submitted by US Ecology, Inc.’s Chief Executive Officer (“CEO”) to the Administrator for approval. Any interpretation of the Plan or act of the Administrator, or its designee, in administering the Plan shall be final and binding, unless the CEO requests review of any finding or interpretation of the Administrator by the Board of Directors of US Ecology, Inc., in which case the Board of Directors’ finding or interpretation shall be final and binding.

 

No member of the Board of Directors of US Ecology, Inc. shall be liable for any action, interpretation or construction made in good faith with respect to the Plan.  US Ecology, Inc. shall indemnify, to the fullest extent permitted by law, each member of its Board of Directors who may become liable in any civil action or proceeding with respect to decisions made relating to the Plan.

 

III.           ELIGIBILITY

 

Eligibility to participate in the Plan is limited to designated employees of the Company (each a “Participant”) and shall be evidenced by a letter from the CEO. The CEO shall submit, no less than annually, a list of participants and participation levels to the Administrator. Participation in the Plan does not guarantee participation (at all or at the same or similar level) in any subsequent plan or performance period.

 

To be eligible to receive an award under the Plan, a Participant must have been employed by the Company on a full-time basis during the Plan Year and, except in the event of a Participant’s death, on the date of any payment under the Plan.  For the sake of clarity, a Participant whose employment has been terminated, for any reason whatsoever (except for death), prior to

 

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payment under the Plan, shall not be eligible to receive a payment hereunder, except as may be approved by the CEO.

 

a.     New Hire/ Rehire — A Participant whose employment with the Company began during the Plan Year shall be eligible for an award on a pro-rata basis, provided the CEO has approved participation and other conditions of the Plan are satisfied.  An award will be pro-rated based upon the number of calendar days the Participant is employed in an eligible position during the Plan Year.  In the case of rehires, there shall be no credit for prior service.

 

b.     Leave of Absence — A Participant who is absent from full-time employment with the Company for more than thirteen consecutive weeks of the Plan Year shall not be eligible for payment under the Plan; unless the CEO approves participation in writing.

 

c.     Promotion — If a Participant is promoted to an eligible position or from one eligible position to another eligible position (with a higher award potential) during the Plan Year, a pro-rated award will be calculated by factoring the number of calendar days in each eligible position and considering the Target Incentive during the Participant’s tenure in each position.

 

d.     Demotion — If a Participant is demoted from an eligible position during the Plan Year, such Participant shall be deemed ineligible for receipt of any payments under the Plan; unless otherwise approved in writing by the CEO.

 

e.     Removal from Plan — A Participant may be removed from the Plan or an award adjusted, including elimination of any right to an award under the Plan, for insubordination, misconduct, malfeasance, or any formal disciplinary action taken by the Company during the Plan Year or prior to payment.

 

IV.           INCENTIVE AWARD

 

Prior to the beginning of the Plan Year or at the time of employment (whichever is later), the CEO shall establish and the Administrator shall approve the objectives (each a “Plan Objective”) that must be achieved for a Participant to receive payment of all or a portion of his/her target incentive amount, which amount is the product of the Participant’s annual salary and an established percentage (“Target Incentive”), except that the Plan Objectives and Target Incentives for the  executive officers of US Ecology, Inc. shall be established by US Ecology, Inc.’s Board of Directors.

 

Payments under the Plan, if any, shall be made to a Participant upon certification by the CEO that such payments are authorized by the Administrator and all applicable criteria have been satisfied.  Payments shall be made within a reasonable time after approval and availability of US Ecology, Inc.’s final audited Plan Year financial statements.

 

V.            PLAN OBJECTIVES

 

Plan Objectives fall into one of three categories:  a) Financial (80% of Target Incentive), b) Health and Safety (10% of Target Incentive), and c) Compliance (10% of Target Incentive).  Plan Objectives are independent and mutually exclusive from each other, so that the applicable percentage of the Target Incentive may be earned if one Plan Objective is met, even if the threshold performance is not met for another Plan Objective.

 

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a.     Financial — The Financial Plan Objective is based on US Ecology, Inc.’s consolidated 2012 budgeted operating income (“Consolidated Operating Income Target”) and, for some designated Participants, the 2012 budgeted operating income will include an operating income target for the site at which the Participant is employed (“Site Operating Income Target”) (each an “Operating Income Target”). Achievement will be determined by comparing actual financial results (based on audited financial information) to the actual Operating Income Targets achieved.  For a Participant employed at the corporate office, achievement of the Consolidated Operating Income Target will be weighted at 80% of his/her Target Incentive.  For a Participant employed at an operating facility, achievement of the Consolidated Operating Income Target will be weighted at 50% of his/her Target Incentive and achievement of the Site Operating Income Target at 30%.

 

The Consolidated Operating Income Target shall be determined as follows:

 

	
Consolidated Operating Income
    
	
Plus:
    	
 
    	
Target   Incentive earned and budgeted to all Participants, assuming each Plan   Objective is achieved at 100% of target
    
	
Plus/Minus:
    	
 
    	
Other   expense/income excluded by Administrator
    
	
Equals
    	
 
    	
Consolidated   Operating Income Target
    

 

The Site Operating Income Target shall be determined as follows:

 

	
Site Operating Income
    
	
Plus:
    	
 
    	
Target   Incentive earned and budgeted to all Participants employed   at the site, assuming each Plan Objective is achieved at 100% of   target
    
	
Plus/Minus:
    	
 
    	
Other   expense/income excluded by Administrator
    
	
Equals
    	
 
    	
Site   Operating Income Target
    

 

The Administrator, in its sole discretion, may include or exclude certain non-recurring or special transactions for purposes of determining the amount of an award under the Plan unless the CEO requests a review of the Administrator’s inclusion or exclusion by US Ecology, Inc.’s Board of Directors, in which case the Board of Directors’ finding or interpretation shall be final and binding.

 

The portion of a Participant’s Target Incentive he or she may receive based on operating income results (“Finance Target Incentive”) is scalable. For every percentage point achievement over 85% of an Operating Income Target, up to and including 99% (rounded to the nearest percentage), a Participant shall earn 5% of the respective Finance Target Incentive.  Upon 100% achievement of an Operating Income Target, 100% of the respective Finance Target Incentive shall be available to a Participant.  For the sake of clarity, the 1% increase in achievement of an Operating Income Target from 99% to 100% shall result in an increase from 70% to 100% of the respective Finance Target Incentive.

 

By way of example, a Participant with an annual base salary of $100,000 who has a Target Incentive of 35%, and whose metric includes both a Consolidated Operating Income Target  and a Site Operating Income Target, would receive the following amounts based on various

 

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levels of achievement. For this example, the Consolidated Operating Income Target is weighted at 50% of the Target Incentive and Site Operating Income Target is weighted at 30%.

 

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EXAMPLE

 

	
CONSOLIDATED OPERATING INCOME TARGET
    	
 
    	
SITE OPERATING INCOME TARGET
    	
 
    
	
(WEIGHTED 50% OF TARGET INCENTIVE)
    	
 
    	
(WEIGHTED 30% OF TARGET INCENTIVE)
    	
 
    
	
Achievement
    	
 
    	
% of Award
    	
 
    	
Cumulative
    	
 
    	
Payout
    	
 
    	
Achievement
    	
 
    	
% of Award
    	
 
    	
Cumulative
    	
 
    	
Payout
    	
 
    
	
85
    	
%
    	
0
    	
%
    	
0
    	
%
    	
$
    	
0
    	
 
    	
85
    	
%
    	
0
    	
%
    	
0
    	
%
    	
$
    	
0
    	
 
    
	
86
    	
%
    	
5
    	
%
    	
5
    	
%
    	
$
    	
875
    	
 
    	
86
    	
%
    	
5
    	
%
    	
5
    	
%
    	
$
    	
525
    	
 
    
	
87
    	
%
    	
5
    	
%
    	
10
    	
%
    	
$
    	
1,750
    	
 
    	
87
    	
%
    	
5
    	
%
    	
10
    	
%
    	
$
    	
1,050
    	
 
    
	
88
    	
%
    	
5
    	
%
    	
15
    	
%
    	
$
    	
2,625
    	
 
    	
88
    	
%
    	
5
    	
%
    	
15
    	
%
    	
$
    	
1,575
    	
 
    
	
89
    	
%
    	
5
    	
%
    	
20
    	
%
    	
$
    	
3,500
    	
 
    	
89
    	
%
    	
5
    	
%
    	
20
    	
%
    	
$
    	
2,100
    	
 
    
	
90
    	
%
    	
5
    	
%
    	
25
    	
%
    	
$
    	
4,375
    	
 
    	
90
    	
%
    	
5
    	
%
    	
25
    	
%
    	
$
    	
2,625
    	
 
    
	
91
    	
%
    	
5
    	
%
    	
30
    	
%
    	
$
    	
5,250
    	
 
    	
91
    	
%
    	
5
    	
%
    	
30
    	
%
    	
$
    	
3,150
    	
 
    
	
92
    	
%
    	
5
    	
%
    	
35
    	
%
    	
$
    	
6,125
    	
 
    	
92
    	
%
    	
5
    	
%
    	
35
    	
%
    	
$
    	
3,675
    	
 
    
	
93
    	
%
    	
5
    	
%
    	
40
    	
%
    	
$
    	
7,000
    	
 
    	
93
    	
%
    	
5
    	
%
    	
40
    	
%
    	
$
    	
4,200
    	
 
    
	
94
    	
%
    	
5
    	
%
    	
45
    	
%
    	
$
    	
7,875
    	
 
    	
94
    	
%
    	
5
    	
%
    	
45
    	
%
    	
$
    	
4,725
    	
 
    
	
95
    	
%
    	
5
    	
%
    	
50
    	
%
    	
$
    	
8,750
    	
 
    	
95
    	
%
    	
5
    	
%
    	
50
    	
%
    	
$
    	
5,250
    	
 
    
	
96
    	
%
    	
5
    	
%
    	
55
    	
%
    	
$
    	
9,625
    	
 
    	
96
    	
%
    	
5
    	
%
    	
55
    	
%
    	
$
    	
5,775
    	
 
    
	
97
    	
%
    	
5
    	
%
    	
60
    	
%
    	
$
    	
10,500
    	
 
    	
97
    	
%
    	
5
    	
%
    	
60
    	
%
    	
$
    	
6,300
    	
 
    
	
98
    	
%
    	
5
    	
%
    	
65
    	
%
    	
$
    	
11,375
    	
 
    	
98
    	
%
    	
5
    	
%
    	
65
    	
%
    	
$
    	
6,825
    	
 
    
	
99
    	
%
    	
5
    	
%
    	
70
    	
%
    	
$
    	
12,250
    	
 
    	
99
    	
%
    	
5
    	
%
    	
70
    	
%
    	
$
    	
7,350
    	
 
    
	
100
    	
%
    	
30
    	
%
    	
100
    	
%
    	
$
    	
17,500
    	
 
    	
100
    	
%
    	
30
    	
%
    	
100
    	
%
    	
$
    	
10,500
    	
 
    

 

Assuming 90% achievement of the Consolidated Operating Income Target and 95% of the Site Operating Income Target, the Participant in this example would be entitled to $9,625, calculated as follows:

 

	
 
    	
 
    	
CONSOLIDATED
   OPERATING INCOME
   TARGET
    	
 
    	
SITE OPERATING
   INCOME TARGET
    	
 
    	
TOTAL
    	
 
    
	
Annual Salary
    	
 
    	
$
    	
100,000
    	
 
    	
$
    	
100,000
    	
 
    	
 
    	
 
    
	
Target Incentive 
    	
 
    	
x 35
    	
%
    	
x 35
    	
%
    	
 
    	
 
    
	
Target Incentive Award
    	
 
    	
$
    	
35,000
    	
 
    	
$
    	
35,000
    	
 
    	
 
    	
 
    
	
Financial Objective Weight
    	
 
    	
x 50
    	
%
    	
x 30
    	
%
    	
 
    	
 
    
	
Weighted Target Incentive Award
    	
 
    	
$
    	
17,500
    	
 
    	
$
    	
10,500
    	
 
    	
 
    	
 
    
	
Cumulative Award Percent Earned
    	
 
    	
x 25
    	
%
    	
x 50
    	
%
    	
 
    	
 
    
	
Earned Award
    	
 
    	
$
    	
4,375
    	
 
    	
$
    	
5,250
    	
 
    	
$
    	
9,625
    	
 
    
											

 

If the Consolidated Operating Income Target or Site Operating Income Target is exceeded, a Participant shall be eligible for an additional amount, calculated by multiplying the Participant’s annual salary by a stated percentage (“Excess Percentage”) for every 1%, or fraction thereof, over the respective Operating Income Target and the resulting product by the respective Operating Income Target weight (“Additional Finance Incentive”).  Continuing with the example above and assuming instead a 105% achievement of the Consolidated

 

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Income Target and an Excess Percentage of 1.25%, the Participant would be entitled to $25,875 calculated as follows:

 

	
 
    	
 
    	
CONSOLIDATED
   OPERATING
   INCOME TARGET
    	
 
    	
SITE OPERATING
   INCOME TARGET
    	
 
    	
TOTAL
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
FINANCE TARGET INCENTIVE
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Annual Salary
    	
 
    	
$
    	
100,000
    	
 
    	
$
    	
100,000
    	
 
    	
 
    	
 
    
	
Target Incentive 
    	
 
    	
x 35
    	
%
    	
x 35
    	
%
    	
 
    	
 
    
	
Target Incentive Award
    	
 
    	
$
    	
35,000
    	
 
    	
$
    	
35,000
    	
 
    	
 
    	
 
    
	
Financial Objective Weight
    	
 
    	
x 50
    	
%
    	
x 30
    	
%
    	
 
    	
 
    
	
Weighted Finance Target Incentive Award
    	
 
    	
$
    	
17,500
    	
 
    	
$
    	
10,500
    	
 
    	
 
    	
 
    
	
Cumulative Award Percent Earned
    	
 
    	
x 100
    	
%
    	
x 50
    	
%
    	
 
    	
 
    
	
 
    	
 
    	
$
    	
17,500
    	
 
    	
$
    	
5,250
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ADDITIONAL FINANCE INCENTIVE
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Annual Salary
    	
 
    	
$
    	
100,000
    	
 
    	
$
    	
100,000
    	
 
    	
 
    	
 
    
	
Cumulative Excess Percentage (5 x 1.25%)
    	
 
    	
x 6.25
    	
%
    	
x 0
    	
%
    	
 
    	
 
    
	
Additional Finance Incentive Award
    	
 
    	
$
    	
6,250
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Financial Objective Weight
    	
 
    	
x 50
    	
%
    	
x 30
    	
%
    	
 
    	
 
    
	
Weighted Additional Finance Incentive Award
    	
 
    	
$
    	
3,125
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Finance Target Incentive
    	
 
    	
$
    	
17,500
    	
 
    	
$
    	
5,250
    	
 
    	
 
    	
 
    
	
Additional Finance Incentive
    	
 
    	
$
    	
3,125
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Earned Award
    	
 
    	
$
    	
20,625
    	
 
    	
$
    	
5,250
    	
 
    	
$
    	
25,875
    	
 
    
											

 

b.     Health and Safety - The metrics for this Plan Objective are identified below and are weighted cumulatively at 10% of a Participant’s Target Incentive and individually at 2.5%.  Each metric is independent and mutually exclusive from the other metrics, so that a percentage of the Target Incentive related to Health and Safety (“Health and Safety Target Incentive”) may be earned independent of achievement of any other Health and Safety metric or other Plan Objective.

 

i.              Training Hours (2.5% Weight) — The Target Incentive related to Training Hours shall be earned on a sliding scale based on the number of training hours conducted during the Plan Year by the site at which a Participant is employed or, for some Participants, by the Company as a whole.

 

ii.           OSHA Designation (2.5% Weight) — The Target Incentive related to OSHA designation shall be earned if the site at which the Participant is employed maintains its OSHA designation (e.g. STAR and SHARP) as determined on December 31, 2011 or, for some

 

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Participants, if each of US Ecology, Inc.’s operating facilities maintains its respective OSHA or other specified designation.

 

iii.        Total Case Rate (“TCR”) (2.5% Weight) — The Target Incentive related to TCR shall be earned if Company-wide objective is achieved as determined by the CEO and reviewed by the Administrator.

 

iv.       Days Away Restricted Time (“DART”) (2.5% Weight) — The Target Incentive related to DART shall be earned if Company-wide objective is achieved as determined by the CEO and reviewed by the Administrator.

 

c.     Compliance — The metric for this Plan Objective is the avoidance of Notices of Violation or Enforcement with monetary penalties during the Plan Year and is weighted at 10% of a Participant’s Target Incentive.  The Target Incentive related to Compliance (“Compliance Target Incentive”) shall be earned on a sliding scale based on the dollar amount of a monetary penalty paid (or accrued under generally accepted accounting principles — “GAAP”) in the Plan Year by the site at which a Participant is employed or, in some cases, the total dollar amount of all monetary penalties paid (or accrued under GAAP) in the Plan Year by each of the US Ecology, Inc. operating facilities or the Company as a whole.  This metric is independent so that a percentage of the Compliance Target Incentive may be earned independent and mutually exclusive of achievement of any other Plan Objective.

 

The CEO will establish in writing a schedule for each Participant, setting forth the applicable Plan Objectives, targets, weights and such other information as may be determined (attached hereto as Exhibit A).

 

VI.           MISCELLANEOUS

 

a.     Interests Not Transferable — Any interests of a Participant under the Plan may not be voluntarily sold, transferred, alienated, assigned or encumbered, other than by will or pursuant to the laws of decent and distribution.  Notwithstanding the foregoing, if a Participant dies during the Plan Year, or prior to payment of an award, then a pro-rata portion of the award that would otherwise be paid to such deceased Participant based on the number of calendar days employed in an eligible position during the Plan Year shall be paid to the deceased’s beneficiary, as designated in writing by such Participant (attached hereto as Exhibit B); provided however, that if the deceased Participant has not designated a beneficiary  then such amount shall be payable to the deceased Participant’s estate.  Payment to a Participant’s estate or beneficiary pursuant hereto shall be made in at the time other Participants are paid.

 

b.     Withholding Taxes — The Company shall withhold from any amounts payable under the Plan applicable withholding including federal, state, city and local taxes, FICA and Medicare as shall be legally required.  Additionally, the Company will withhold from any amounts payable under the Plan, the applicable contribution for the Participant’s 401(k) Savings and Retirement Plan as defined in the US Ecology, Inc. 401(K) Plan description protected under ERISA.

 

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c.     No Right of Employment — Nothing in this Plan will be construed as creating any contract of employment or conferring upon any Participant any right to continue in the employ or other service of the Company or limit in any way the right of Company to change such person’s compensation or other benefits or to terminate the employment or other service of such person with or without cause.

 

d.     No Representations — The Company does not represent or guarantee that any particular federal or state income, payroll, personal property or other tax consequence will result from participation in the Plan.

 

e.     Section Headings — The section headings contained herein are for convenience only and, in the event of any conflict, the text of the Plan, rather than the section headings, will control.

 

f.      Severability — In the event any provision of the Plan shall be held to be illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if such illegal or invalid provisions had never been contained in the Plan.

 

g.     Invalidity — If any term or provision contained herein is to any extent invalid or unenforceable, such term or provision shall be reformed so that it is valid, and such invalidity or unenforceability  shall not affect any other provision or part hereof.

 

h.     Applicable Law — Except to the extent superseded by the laws of the United States, the laws of the State of Idaho, without regard to its conflicts of laws principles, shall govern in all matters relating to the Plan.

 

i.      Effective on Other Plans — Payments or benefits provided to a Participant under any stock, deferred compensation, savings, retirements or other employee benefit plan are governed solely by the terms of each of such plans.

 

j.      Effective Date — The Plan is effective as of January 1, 2012.

 

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EXHIBIT A

 

EXAMPLE INCENTIVE SCHEDULE - SITE

 

Participant

John Smith

 

Position

General Manager

 

Site

US Ecology Arizona, Inc.

 

Target Incentive (expressed as a percentage of Base Salary): 35%

 

Excess Percentage (expressed as a percentage of Base Salary): 1.25%

 

Plan Objectives/ Weight/ Target Amount

 

a.     Financial (80% of Target Incentive)

i.      Consolidated Operating Income Target (50%) — $25,000,000

 

ii.     Site Operating Income Target (30%) — $10,000,000

 

b.     Health and Safety (10% of Target Incentive) (Site)

i.      Training Hours (2.5%) — 500

Scalable at percentage of completion, but with a minimum threshold of 85% of target (complete 420 hours or 84% of target - receive 0% of 2.5%) (complete 450 hours or 90% of target - receive 90% of 2.5%)

 

ii.     OSHA Designation (2.5%) (Site) — Maintain SHARP status

 

iii.    TCR (2.5%) (Corporate) — 3.70

 

iv.    DART (2.5%) (Corporate) —  1.99

 

c.     Compliance (10% of Target Incentive) (Site)

 

	
Monetary Penalty
    	
 
    	
% of Compliance Target
   Incentive
    	
 
    
	
$0   - $25,000
    	
 
    	
100
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
$25,001   — $50,000
    	
 
    	
50
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
Over   $50,000
    	
 
    	
0
    	
%
    

 

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EXAMPLE INCENTIVE SCHEDULE - CORPORATE

 

Participant

Jane Doe

 

Position

Accounting Manager

 

Site

Corporate

 

Target Incentive (expressed as a percentage of Base Salary): 10%

Excess Percentage (expressed as a percentage of Base Salary): 1.25%

 

Plan Objectives/ Weight/ Target Amount

 

a.     Financial (80% of Target Incentive)

i.      Consolidated Operating Income Target (80%) — $25,000,000

 

ii.     Site Operating Income Target (0%) — N/A

 

b.     Health and Safety (10% of Target Incentive) (Company-wide)

i.      Training Hours (2.5%) (Company-wide) — 2,500

Scalable at percentage of completion, but with a minimum threshold of 85% of target (complete 2,100 hours or 84% of target - receive 0% of 2.5%) (complete 2,250 hours or 90% of target - receive 90% of 2.5%)

 

ii.     Safety and Health Designation (2.5%) (Company-wide) — Maintain all existing VPP and SHARP status at all US Ecology sites.

 

iii.    TCR (2.5%) (Company-wide) — 3.70

 

iv.    DART (2.5%) (Company-wide) — 1.99

 

c.     Compliance (10% of Target Incentive) (Company-wide)

 

	
Monetary Penalty
    	
 
    	
% of Compliance Target
   Incentive
    	
 
    
	
$0   - $75,000
    	
 
    	
100
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
$75,001   — $150,000
    	
 
    	
50
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
Over   $150,000
    	
 
    	
0
    	
%
    

 

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EXHIBIT B

 

BENEFICIARY DESIGNATION

 

I hereby designate the following person or persons as Beneficiary to receive any management incentive payments due under the attached US Ecology, Inc. 2012 Management Incentive Plan, effective January 1, 2012, in the event of my death, reserving the full right to revoke or modify this designation, or any modification thereof, at any time by a further written designation:

 

	
Primary Beneficiary
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name   of Individual
    	
 
    	
Relationship   to me
    	
 
    	
Birth   Date (if minor)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name   of Trust
    	
 
    	
Date   of Trust
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Provided,   however, that if such Primary Beneficiary shall not survive me by at least   sixty (60) days, the following shall be the Beneficiary:
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Contingent Beneficiary
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name   of Individual
    	
 
    	
Relationship   to me
    	
 
    	
Birth   Date (if minor)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name   of Trust
    	
 
    	
Date   of Trust
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
This   Beneficiary Designation shall not affect any other beneficiary designation   form that I may have on file with US Ecology, Inc. regarding benefits   other than that referred to above.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signature
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

11Exhibit 4.4

 

[FORM]

 

PETROLOGISTICS

LONG TERM INCENTIVE PLAN

 

RESTRICTED UNIT AGREEMENT

 

This Restricted Unit Agreement (this “Agreement”) is made and entered into by and between PETROLOGISTICS GP LLC, a Delaware limited liability company (the “Company”), and                                            (the “Employee”).  This Agreement is entered into as of the            day of                                 , 20     (the “Date of Grant”).  Capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings ascribed to such terms in the Plan (as defined below), unless the context requires otherwise.

 

W I T N E S S E T H:

 

WHEREAS, the Company has adopted the PETROLOGISTICS LONG TERM INCENTIVE PLAN (the “Plan”) to attract, retain and motivate employees, officers, directors and consultants; and

 

WHEREAS, the Board of Directors of the Company (the “Board”) has authorized the grant to employees and officers of restricted units of PETROLOGISTICS LP, a Delaware limited partnership (the “Partnership”), as part of their compensation for services performed for the Company, the Partnership, or any other entity which is an affiliate (within the meaning of such term under the Exchange Act and the rules promulgated thereunder) of any of the foregoing entities (collectively, the “Partnership Entities”).

 

NOW, THEREFORE, in consideration of the Employee’s agreement to provide or to continue providing services to the Partnership Entities, the Employee and the Company agree as follows:

 

SECTION 1.                                Grant.

 

The Company hereby grants to the Employee as of the Date of Grant an award of                    Units, subject to the terms and conditions set forth in this Agreement, including, without limitation, those restrictions described in Section 2 (the “Restricted Units”).

 

SECTION 2.                                Restricted Units.

 

The Restricted Units are restricted in that they may be forfeited to the Company and in that they may not, except as otherwise provided in Section 5, be transferred or otherwise disposed of by the Employee until such restrictions are removed or expire as described in Section 4 of this Agreement.  The Company shall issue in the Employee’s name the Restricted Units and retain the Restricted Units until the restrictions on such Restricted Units expire or until the Restricted Units are forfeited as described in Section 4 of this Agreement.  The Employee agrees that the Company will hold the Restricted Units pursuant to the terms of this Agreement until

 

 

such time as the Restricted Units are either delivered to the Employee or forfeited pursuant to this Agreement.

 

SECTION 3.                                Rights of Employee; Unit Distribution Rights.

 

Effective as of the Date of Grant, the Employee shall be treated for all purposes as a unit holder with respect to all of the Restricted Units granted to him pursuant to Section 1 (except that the Employee shall not be treated as the owner of the Units for federal income tax purposes until the Restricted Units vest (unless the Employee makes an election under section 83(b) of the Code, in which case the Employee shall be treated as the owner of the Units for all purposes on the Date of Grant)) and shall, except as provided herein, have all of the rights and obligations of a unit holder with respect to all such Restricted Units, including any right to vote with respect to such Restricted Units and to receive any UDRs thereon if, as, and when declared and paid by the Partnership.  Notwithstanding the preceding provisions of this Section 3, the Restricted Units shall be subject to the restrictions described herein, including, without limitation, those described in Section 2.

 

SECTION 4.                                Forfeiture and Expiration of Restrictions.

 

(a)                                  Vesting Schedule.  Subject to the terms and conditions of this Agreement, the restrictions described in Section 2 shall lapse and the Restricted Units shall be fully vested and nonforfeitable (“Vested Units”), provided the Employee has continuously provided services to  the Partnership Entities, without interruption, from the Date of Grant through each applicable vesting date (each, a “Vesting Date”), in accordance with the following schedule:

 

	
Vesting Date
    	
 
    	
Cumulative Vested Units
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

(b)                                 Termination of Service.

 

(i)                                     Termination Generally.  If, at any time prior to the date all Restricted Units become Vested Units, the Employee ceases providing services to the Partnership Entities, then all Restricted Units granted pursuant to this Agreement that have not yet become Vested Units as of the date of termination of Employee’s employment or service relationship shall become null and void as of the date of such termination, shall be forfeited to the Company and the Employee shall cease to have any rights with respect thereto; provided, however, that the portion, if any, of the Restricted Units for which forfeiture restrictions have lapsed as of the Employee’s date of termination shall survive.

 

(ii)                                  Termination due to Death.  Notwithstanding Section 4(b)(i), if, at any time prior to the date all Restricted Units become Vested Units, the Employee ceases

 

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providing services to the Partnership Entities by reason of the Employee’s death, then the restrictions in Section 2 shall lapse and all Restricted Units granted pursuant to this Agreement shall immediately become fully vested and nonforfeitable as of the date of such termination (to the extent not vested prior to that date).

 

(c)                                  Change of Control.  In the event of a Change of Control (as defined in the Plan) prior to the date all Restricted Units become Vested Units, the restrictions described in Section 2 shall lapse and all Restricted Units granted pursuant to this Agreement shall immediately become fully vested and nonforfeitable (to the extent not vested prior to that date) and the Company shall deliver the Vested Units (or the amount of cash, other property or securities, if any, equal to the amount that would have been attained by the Employee if he were a unit holder as of the date of the occurrence of such event) to the Employee as soon as practicable thereafter.

 

SECTION 5.                                Limitations on Transfer.

 

The Employee agrees that he shall not dispose of (meaning, without limitation, sell, transfer, pledge, exchange, hypothecate or otherwise dispose of) any Restricted Units hereby acquired prior to the applicable Vesting Dates.  Any attempted disposition of the Restricted Units in violation of the preceding sentence shall be null and void.  Notwithstanding the foregoing, part or all of the Restricted Units or rights under this Agreement may be transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction; provided, however, that such Restricted Units shall continue to be held pursuant to Section 2 of this Agreement, and the transferee under the domestic relations order shall agree that the Restricted Units so transferred shall continue to be subject to the terms of this Agreement, including forfeiture in accordance with Sections 4(a) and (b) of this Agreement.

 

SECTION 6.                                Nontransferability of Agreement.

 

This Agreement and all rights under this Agreement shall not be transferable by the Employee other than by will or pursuant to applicable laws of descent and distribution.  Any rights and privileges of the Employee in connection herewith shall not be transferred, assigned, pledged or hypothecated by the Employee or by any other person or persons, in any way, whether by operation of law, or otherwise, and shall not be subject to execution, attachment, garnishment or similar process.  In the event of any such occurrence, the Restricted Units shall automatically be forfeited.  Notwithstanding the foregoing, all or some of the Restricted Units or rights under this Agreement may be transferred to a spouse pursuant to a domestic relations order issued by a court of competent jurisdiction, subject to the limitations on such transfer described in Section 5.

 

SECTION 7.                                Adjustment of Restricted Units.

 

The number of Restricted Units granted to the Employee pursuant to this Agreement shall be adjusted to reflect distributions of the Partnership paid in units, unit splits or other changes in the capital structure of the Partnership, all in accordance with the Plan. All provisions of this Agreement shall be applicable to such new or additional or different units or securities distributed or issued pursuant to the Plan to the same extent that such provisions are applicable to the units with respect to which they were distributed or issued.

 

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SECTION 8.                                Delivery of Vested Units.

 

Promptly following the expiration of the restrictions on the Restricted Units as contemplated in Section 4 of this Agreement, and subject to Section 9, the Company shall cause to be issued and delivered to the Employee or the Employee’s designee the number of Restricted Units as to which restrictions have lapsed, free of any restrictive legend relating to the lapsed restrictions, and shall pay to the Employee any previously unpaid UDRs distributed with respect to the Restricted Units.  Neither the value of the Restricted Units nor the UDRs shall bear any interest owing to the passage of time.

 

SECTION 9.                                Securities Act.

 

The Company shall have the right, but not the obligation, to cause the Restricted Units to be registered under the appropriate rules and regulations of the Securities and Exchange Commission.  The Company shall not be required to deliver any Units hereunder if, in the opinion of counsel for the Company, such delivery would violate the Securities Act of 1933 or any other applicable federal or state securities laws or regulations.

 

SECTION 10.                          Copy of Plan.

 

By the execution of this Agreement, the Employee acknowledges receipt of a copy of the Plan.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under any applicable law, then such provision will be deemed to be modified to the minimum extent necessary to render it legal, valid and enforceable; and if such provision cannot be so modified, then this Agreement will be construed as if not containing the provision held to be invalid, and the rights and obligations of the parties will be construed and enforced accordingly.

 

SECTION 11.                          Notices.

 

Whenever any notice is required or permitted hereunder, such notice must be in writing and personally delivered or sent by mail.  Any such notice required or permitted to be delivered hereunder shall be deemed to be delivered on the date on which it is personally delivered or, whether actually received or not, on the third business day (on which banking institutions in the State of Texas are open) after it is deposited in the United States mail, certified or registered, postage prepaid, addressed to the person who is to receive it at the address which such person has theretofore specified by written notice delivered in accordance herewith.  The Company or the Employee may change at any time and from time to time by written notice to the other, the address which it or he previously specified for receiving notices.  The Company and the Employee agree that any notices shall be given to the Company or to the Employee at the following addresses:

 

	
Company:
    	
PetroLogistics GP LLC
    
	
 
    	
Attn: Corporate Secretary
    
	
 
    	
600 Travis Street, Suite 3250
    
	
 
    	
Houston, Texas 77002
    
	
 
    	
Phone: (713) 255-5990
    
	
 
    	
Fax: (713) 255-5991
    

 

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Employee:
    	
At the Employee’s current address as shown in the Company’s   records.
    

 

SECTION 12.                          General Provisions.

 

(a)                                  Administration.  This Agreement shall at all times be subject to the terms and conditions of the Plan.  The Committee shall have sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of the majority of the Committee with respect thereto and with respect to this Agreement shall be final and binding upon the Employee and the Company.  In the event of any conflict between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control.

 

(b)                                 Continuation of Service.  This Agreement shall not be construed to confer upon the Employee any right to continue in the service of the Partnership Entities.

 

(c)                                  Governing Law.  This Agreement shall be interpreted and administered under the laws of the State of Delaware, without giving effect to any conflict of laws provisions.

 

(d)                                 Amendments.  This Agreement may be amended only by a written agreement executed by the Company and the Employee, except that the Committee may unilaterally waive any conditions or rights under, amend any terms of, or alter this Agreement provided no such change (other than pursuant to Section 7(b) of the Plan) materially reduces the rights or benefits of the Employee with respect to the Restricted Units without his consent.

 

(e)                                  Binding Effect.  This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and upon any person lawfully claiming under the Employee.

 

(f)                                    Entire Agreement.  This Agreement constitutes the entire agreement of the parties with regard to this subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to the Restricted Units granted hereby.  Without limiting the scope of the preceding sentence, all prior understandings and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect.

 

(g)                                 No Liability for Good Faith Determinations.  Neither the Partnership Entities nor the members of the Committee or the Board nor any officer of the Company shall be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Restricted Units granted hereunder.

 

(h)                                 No Guarantee of Interests.  The Board and the Partnership Entities do not guarantee the Units from loss or depreciation.

 

(i)                                     Withholding Taxes.  To the extent that the grant or vesting of a Restricted Unit or distribution thereon results in the receipt of compensation by the Employee with respect to which any Partnership Entity has a tax withholding obligation pursuant to applicable law, unless other

 

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arrangements have been made by the Employee that are acceptable to such Partnership Entity, the Employee shall surrender to the Partnership Entity the number of Units otherwise issuable to him having a Fair Market Value equal to the sums the Partnership Entity may require to meet its withholding obligations under applicable law.  No issuance of an unrestricted Unit shall be made pursuant to this Agreement until the Employee has paid or made arrangements approved by the Company to satisfy in full the applicable tax withholding requirements.  In the event that Units that would otherwise be issued in respect of the Restricted Units are surrendered to satisfy such withholding obligations, the number of Units that shall be so surrendered shall be limited to the number of Units that have a Fair Market Value on the date of such surrender equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its officer thereunto duly authorized, and the Employee has set his hand as to the date and year first above written.

 

	
 
    	
PETROLOGISTICS GP LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Employee
    	
 
    

 

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