Document:

exv10w03

 

Exhibit 10.03

ALLIED WASTE INDUSTRIES, INC.

RESTRICTED STOCK AGREEMENT

(Under the Amended and Restated

1991 Incentive Stock Plan)

     THIS RESTRICTED STOCK AGREEMENT (“Agreement”), dated May 27, 2005 (“Date of Grant”), between
ALLIED WASTE INDUSTRIES, INC., a Delaware corporation (“Company”), and JOHN J. ZILLMER (“Grantee”):

R E C I T A L S:

     The Company adopted the Allied Waste Industries, Inc. 1991 Incentive Stock Plan, as most
recently amended and restated effective February 5, 2004 and as subsequently amended (“Plan”), all
of the terms and provisions of which are incorporated herein by reference and made a part of this
Agreement. All capitalized terms used but not defined in this Agreement have the meanings given to
them in the Plan.

     The Management Development/Compensation Committee of the Board of Directors (“Committee”) has
determined that it would be in the best interests of the Company and its stockholders to grant the
Restricted Stock provided for herein to Grantee pursuant to the Plan and this Agreement, as an
inducement for Grantee to serve as an employee of the Company and to provide Grantee with a
proprietary interest in the future of the Company.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
hereto agree as follows:

1. Grant of Restricted Stock. The Company hereby grants to Grantee 100,000 shares of
Restricted Stock (“Award Shares”), subject to the following terms and conditions and to the
provisions of the Plan.

2. Vesting. Grantee shall become vested in fifty percent (50%) of the Award Shares (i.e.,
50,000 Award Shares) as follows: 10,000 Award Shares shall become fully vested on May 27, 2006,
and, as of the 27th day of each calendar month thereafter, an additional 833 Award Shares shall
become fully vested until such time as all 50,000 Award Shares are fully vested. The remaining
fifty percent (50%) of the Award Shares (i.e., the remaining 50,000 Award Shares) shall vest upon
the attainment of certain performance goals, as provided in Schedule A to this Agreement.

3. Effect of Termination of Employment. Except as otherwise provided in any written
employment agreement between Grantee and Company, if Grantee’s employment with the Company is
terminated for any or no reason, all unvested Award Shares at the time of Grantee’s termination of
employment shall be forfeited upon Grantee’s date of termination. If Grantee’s termination of
employment is due to his death, Grantee’s vested Award Shares (if any) will be paid to Grantee’s
beneficiary.

 

 

4. Tender Offer/Merger; Adjustment of Shares. Notwithstanding anything contained herein to
the contrary:

(a) Award Shares (i) may be tendered in response to a tender offer for a request or
invitation to tender of greater than 50% of the outstanding Common Stock of the Company or
(ii) may be surrendered in a merger, consolidation or share exchange involving the Company;
provided, in each case, that the securities or other consideration received in exchange
thereof shall thereafter be subject to the restrictions and conditions set forth herein.

(b) In the event of any change in the outstanding Common Stock resulting from a subdivision
or consolidation of shares, whether through reorganization, recapitalization, share split,
reverse share split, share distribution or combination of shares or the payment of a share
dividend, the Award Shares shall be treated in the same manner in any such transaction as
other Common Stock. Any Common Stock or other securities received by the Grantee with
respect to the Award Shares in any such transaction shall be subject to the restrictions and
conditions set forth herein.

5. Rights as Stockholder. Subject to the terms of this Agreement, Grantee shall be
entitled to all of the rights of a stockholder with respect to the Award Shares including the right
to vote such shares and to receive dividends and other distributions payable with respect to such
shares since the Date of Grant.

6. Share Certificates. The Company will provide Grantee with a certificate for the Award
Shares, issued in the Grantee’s name, but containing the stock legend as provided for in Section
7(d) of the Plan. Within a reasonable time following the vesting of a Grantee’s Award Shares, the
Company will re-issue one or more certificates to the Grantee with respect to which the stock
legend has been removed in the case of vested Award Shares. The certificate(s) will be stamped or
otherwise imprinted with a legend in such form as the Company or its counsel may require with
respect to any applicable restrictions on the sale or transfer of the Award Shares, and the stock
transfer records of the Company will reflect stop-transfer instructions with respect to such
shares.

7. Term of Employment. This Agreement does not grant to Grantee any right to continue
serving as an employee of the Company.

8. Notices; Deliveries. Any notice of delivery required to be given under the terms of
this Agreement shall be addressed to the Company, in care of its Secretary, at its principal office
at 15880 N. Greenway-Hayden Loop, Suite 100, Scottsdale, Arizona 85260, and any notice or delivery
to be given to Grantee shall be addressed to him at the address given by him beneath his signature
hereto or such other address as either party hereto may hereafter designate in writing to the
other. Any such notice or delivery shall be deemed to have been duly given when addressed as
aforesaid, registered or certified mail, and deposited (postage or registration or certification
fee prepaid) in a post office or branch post office regularly maintained by the United States.

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9. Disputes. As a condition of the granting of the Award Shares, Grantee and his heirs and
successors agree that any dispute or disagreement which may arise hereunder shall be determined by
the Committee in its sole discretion and judgment, and that any such determination and any
interpretation by the Committee of the terms of the Plan and this Agreement shall be final and
shall be binding and conclusive, for all purposes, upon the Company, Grantee, his heirs and
personal representatives, and all permitted transferees.

10. Award Shares Subject to Plan. The Award Shares granted pursuant to this Agreement are
subject to the terms and provisions of the Plan. Unless otherwise explicitly stated herein, in the
event of a conflict between any term or provision contained herein and a term or provision of the
Plan, the applicable terms and provisions of the Plan will govern and prevail under all
circumstances.

11. Miscellaneous.

     (a) All decisions of the Committee with respect to any questions arising under the Plan or
under this Agreement shall be conclusive.

     (b) Nothing herein contained shall affect Grantee’s right to participate in and receive
benefits from and in accordance with the then current provisions of any employee pension, welfare,
or fringe benefit plan or program of the Company.

     (c) Grantee agrees to make appropriate arrangements with the Company for the satisfaction of
any applicable federal, state or local income tax withholding or similar requirements, including
the payment to the Company at the time of vesting of the Award Shares of any and all such taxes and
the satisfaction of all such requirements.

     (d) Whenever the term “Grantee” is used herein under circumstances applicable to any other
person or persons to whom the Award Shares, in accordance with the provisions of this Agreement or
the Plan, may be transferred, the word “Grantee” shall be deemed to include such person or persons.

     (e) If any provision of this Agreement or of the Plan would disqualify the Agreement or the
Plan under Rule 16b-3 promulgated under the Securities Exchange Act of 1934, or would cause the
Agreement or the Plan to not otherwise comply with Rule 16b-3, such provision shall be construed or
deemed amended to conform to Rule 16b-3 to the extent permitted by applicable law and deemed
advisable by the Company’s Board of Directors.

     (f) Notwithstanding anything contained herein to the contrary, the Company’s obligation to
issue or deliver certificates evidencing the Award Shares shall be subject to all applicable laws,
rules, and regulations and to such approvals by any governmental agencies or national securities
exchanges as may be required.

     (g) This Agreement shall be binding upon and inure to the benefit of any successor or
successors of the Company.

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     (h) The interpretation, performance and enforcement of this Agreement shall be governed by the
laws of the State of Arizona.

     IN WITNESS WHEREOF, the Company has, as of the date first above written, caused this Agreement
to be executed on its behalf by its Chairman, President or any Vice President, and Grantee has
hereunder set his hand as of the date first above written, which date is the Date of Grant of the
Award Shares.

	 	 	 	 	 	 	 
	ALLIED WASTE INDUSTRIES, INC.	 	 	 	GRANTEE
	 

	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	

	 	 
	 	 	 	 
	

	 	 	 	 	 	John J. Zillmer
	

	 	 	 	 	 	 
	Title
	 	 	 	 	 	 
	

	 	 
	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	 	 	 

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SCHEDULE A

[To be agreed upon by the parties.]exv10w04

 

Exhibit 10.04

INDEMNITY AGREEMENT

(Employee Director or Officer)

     This INDEMNITY AGREEMENT (“Agreement”) made and entered into May 27, 2005, is by and between
ALLIED WASTE INDUSTRIES, INC., a Delaware corporation (“Company”), and JOHN J. ZILLMER
(“Indemnitee”).

     WHEREAS, highly competent persons are becoming more reluctant to serve publicly held
corporations as directors, officers, or in other capacities unless they are provided with adequate
protection through insurance or adequate indemnification against inordinate risks of claims and
actions against them arising out of their service to, and activities on behalf of, such
corporations; and

     WHEREAS, the current difficulty and expense of obtaining adequate insurance and the
uncertainties relating to indemnification have increased the difficulty of attracting and retaining
such persons; and

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that the inability
to attract and retain such persons is detrimental to the best interests of the Company’s
stockholders and that the Company should act to assure such persons that there will be increased
certainty of such protection in the future; and

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify such persons to the fullest extent permitted by applicable law so that they
will serve or continue to serve the Company free from undue concern that they will not be so
indemnified; and

     WHEREAS, Indemnitee is willing to serve or continue to serve and to take on additional service
for or on behalf of the Company on the condition that he be so indemnified.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     Section 1. Services by Indemnitee. Indemnitee agrees to serve as Chief Executive
Officer of the Company. Indemnitee may at any time and for any reason resign from such position and
the Company may at any time terminate the Indemnitee’s service with the Company (subject to any
other contractual obligation or any obligation imposed by operation of law), in which event the
Company shall have no obligation under this Agreement to continue Indemnitee in such position.

     Section 2. Indemnification - General. Except as otherwise set forth in or
limited by this Agreement, the Company’s Certificate of Incorporation or By-laws (as either or both
may be amended from time to time), or applicable law, the Company shall indemnify, and advance
Expenses (as hereinafter defined) to Indemnitee, as provided in this Agreement and to the fullest

 

 

extent permitted by applicable law in effect on the date hereof and to such greater extent as
applicable law may thereafter from time to time permit. The rights of Indemnitee provided under
the preceding sentence shall include, but shall not be limited to, the rights set forth in the
other Sections of this Agreement.

     Section 3. Proceedings Other Than Proceedings by or in the Right of the Company. Subject to
the exceptions set forth in Section 15, Indemnitee shall be entitled to the rights of
indemnification provided in this Section 3 if, by reason of his Corporate Status (as hereinafter
defined) or by reason of anything done or not done by Indemnitee in any such capacity, he is, or is
threatened to be made, a party to any threatened, pending, or completed Proceeding (as hereinafter
defined), other than a Proceeding by or in the right of the Company. Pursuant to this Section 3,
Indemnitee shall be indemnified by the Company to the full extent permitted by applicable law
against Expenses, judgments, penalties, fines and amounts paid in settlement (including all
interest, assessments and other charges paid or payable in connection with or in respect of such
Expenses, judgments, fines, penalties or amounts paid in settlement) actually and reasonably
incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter
therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the Company, and, with respect to any criminal Proceeding, had no
reasonable cause to believe his conduct was unlawful.

     Section 4. Proceedings by or in the Right of the Company. Subject to the exceptions set forth
in Section 15, Indemnitee shall be entitled to the rights of indemnification provided in this
Section 4 if, by reason of his Corporate Status, he is, or is threatened to be made, a party to any
threatened, pending or completed Proceeding brought by or in the right of the Company to procure a
judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified by the Company
to the full extent permitted by applicable law against Expenses actually and reasonably incurred by
him or on his behalf in connection with such Proceeding if he acted in good faith and in a manner
he reasonably believed to be in or not opposed to the best interests of the Company.
Notwithstanding the foregoing, no indemnification against such Expenses shall be made in respect of
any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged to be
liable to the Company if applicable law prohibits such indemnification; provided, however, that, if
applicable law so permits, indemnification against Expenses shall nevertheless be made by the
Company in such event if and only to the extent that the Court of Chancery of the State of
Delaware, or the court in which such Proceeding shall have been brought or is pending, shall
determine.

     Section 5. Indemnification for Expenses where Indemnitee is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason
of his Corporate Status, a party to and is successful, on the merits or otherwise, in any
Proceeding, he shall be indemnified against all Expenses actually and reasonably incurred by him or
on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding
but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually
and reasonably incurred by him or on his behalf in connection with each successfully resolved
claim, issue or matter. For purposes of this Section and without limitation, the termination of any
claim, issue or matter in such a Proceeding by

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dismissal, with or without prejudice, shall be deemed to be a successful result as to such
claim, issue or matter.

     Section 6. Indemnification for Expenses of a Witness. Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in
any Proceeding to which he is not a party, he shall be indemnified against all Expenses actually
and reasonably incurred by him or on his behalf in connection therewith.

     Section 7. Advancement of Expenses. Except as otherwise limited or prohibited by
applicable law, the Company shall advance all reasonable Expenses incurred by or on behalf of
Indemnitee in connection with any Proceeding within 15 days after the receipt by the Company of a
statement or statements from Indemnitee requesting such advance or advances from time to time,
whether prior to or after final disposition of such Proceeding. Such statement or statements shall
reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or
accompanied by an undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it
shall ultimately be determined by a court of competent jurisdiction that Indemnitee is not entitled
to be indemnified against such Expenses; provided, however, that Indemnitee shall not be required
to reimburse Company for any advancement of Expenses until a final judicial determination is made
(as to which all rights of appeal have been exhausted or lapsed).

     Section 8. Procedure for Determination of Entitlement to Indemnification.

     (a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a
written request, including therein or therewith such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to what extent
Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon
receipt of such a request for indemnification, advise the Board of Directors in writing that
Indemnitee has requested indemnification.

     (b) Upon written request by Indemnitee for indemnification pursuant to the last sentence of
Section 8(a) hereof, a determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall be made in the specific case: (i) if a Change in Control (as hereinafter
defined) shall have occurred, by Independent Counsel (as hereinafter defined) (unless Indemnitee
shall request that such determination be made by the Board of Directors or the stockholders, in
which case by the person or persons or in the manner provided for in clauses (ii) or (iii) of this
Section 8(b)) in a written opinion to the Board of Directors, a copy of which shall be delivered to
Indemnitee; (ii) if a Change of Control shall not have occurred, (A) by the Board of Directors by a
majority vote of a quorum consisting of Disinterested Directors (as hereinafter defined), or (B) if
a quorum of the Board of Directors consisting of Disinterested Directors is not obtainable or, even
if obtainable, such quorum of Disinterested Directors so directs, by Independent Counsel in a
written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, or (C)
if so directed by the Board of Directors, by the stockholders of the Company; or (iii) as provided
in Section 9(b) of this Agreement; and, if it is so determined that Indemnitee is entitled to
Indemnification, payment to Indemnitee shall be made within 10 days after such determination.
Indemnitee shall cooperate with the person, persons or entity making such determination with
respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons
or entity upon reasonable advance request any

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documentation or information which is not privileged or otherwise protected from disclosure and
which is reasonably available to Indemnitee and reasonably necessary to such determination. Any
costs or Expenses (including attorney’s fees and disbursements) incurred by Indemnitee in so
cooperating with the person, persons or entity making such determination shall be borne by the
Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and
the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

     (c) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 8(b) hereof, the Independent Counsel shall be selected as
provided in this Section 8(c). If a Change of Control shall not have occurred, the Independent
Counsel shall be selected by the Board of Directors, and the Company shall give written notice to
Indemnitee advising him of the identity of the Independent Counsel so selected. If a Change of
Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless
Indemnitee shall request that such selection be made by the Board of Directors, in which event the
preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising
it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the
Company, as the case may be, may, within 7 days after such written notice of selection shall have
been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to
such selection. Such objection may be asserted only on the ground that the Independent Counsel so
selected does not meet the requirements of “Independent Counsel” as defined in Section 18 of this
Agreement, and the objection shall set forth with particularity the factual basis of such
assertion. If such written objection is made, the Independent Counsel so selected may not serve as
Independent Counsel unless and until a court has determined that such objection is without merit.
If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant
to Section 8(a) hereof, no Independent Counsel shall have been selected without objection, either
the Company or Indemnitee may petition the Court of Chancery of the State of Delaware or other
court of competent jurisdiction for resolution of any objection which shall have been made by the
Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as
Independent Counsel of a person selected by the Court or by such other person as the Court shall
designate, and the person with respect to whom an objection is so resolved or the person so
appointed shall act as Independent Counsel under Section 8(b) hereof. The Company shall pay any and
all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in
connection with acting pursuant to Section 8(b) hereof, and the Company shall pay all reasonable
fees and expenses incident to the procedures of this Section 8(c), regardless of the manner in
which such Independent Counsel was selected or appointed. Upon the due commencement of any judicial
proceeding or arbitration pursuant to Section 10(a)(iii) of this Agreement, Independent Counsel
shall be discharged and relieved of any further responsibility in such capacity (subject to the
applicable standards of professional conduct then prevailing).

     Section 9. Presumptions and Effect of Certain Proceedings.

     (a) In making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall presume that Indemnitee is entitled to
indemnification under this Agreement if Indemnitee has submitted a

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request for indemnification in accordance with Section 8(a) of this Agreement, and the Company
shall have the burden of proof to overcome that presumption in connection with the making by any
person, persons or entity of any determination contrary to that presumption.

     (b) If the person, persons or entity empowered or selected under Section 8 of this Agreement
to determine whether Indemnitee is entitled to indemnification shall not have made a determination
within 60 days after receipt by the Company of the request therefor, the requisite determination of
entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled
to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission
of a material fact necessary to make Indemnitee’s statement not materially misleading, in
connection with the request for indemnification, or (ii) a prohibition of such indemnification
under applicable law; provided, however, that such 60-day period may be extended for a reasonable
time, not to exceed an additional 30 days, if the person, persons or entity making the
determination with respect to entitlement to indemnification in good faith requires such additional
time for the obtaining or evaluating of documentation and/or information relating thereto; and
provided, further, that the foregoing provisions of this Section 9(b) shall not apply (i) if the
determination of entitlement to indemnification is to be made by the stockholders pursuant to
Section 8(b) of this Agreement and if (A) within 15 days after receipt by the Company of the
request for such determination the Board of Directors has resolved to submit such determination to
the stockholders for their consideration at an annual meeting thereof to be held within 75 days
after such receipt and such determination is made thereat, or (B) a special meeting of stockholders
is called within 15 days after such receipt for the purpose of making such determination, such
meeting is held for such purpose within 60 days after having been so called and such determination
is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 8(b) of this Agreement.

     (c) The failure of the Company to award indemnification or to determine that indemnification
is payable shall not create an adverse presumption that Indemnitee is not entitled to
indemnification under this Agreement. The termination of any Proceeding or of any claim, issue or
matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo
contendere or its equivalent, shall not (except as otherwise expressly provided in this
Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a
presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed
to be in or not opposed to the best interests of the Company or, with respect to any criminal
Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.

     Section 10. Remedies of Indemnitee.

     (a) In the event that (i) a determination is made pursuant to Section 8 of this Agreement that
Indemnitee is not entitled to indemnification under this Agreement, or (ii) advancement of Expenses
is not timely made pursuant to Section 7 of this Agreement, or (iii) the determination of
entitlement to indemnification is to be made by Independent Counsel pursuant to Section 8(b) of
this Agreement and such determination shall not have been made and delivered in a written opinion
within 90 days after receipt by the Company of the request for indemnification, or (iv) payment of
indemnification is not made pursuant to Section 6 of this

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Agreement within 10 days after receipt by the Company of a written request therefor, or (v)
payment of indemnification is not made within 10 days after a determination has been made that
Indemnitee is entitled to indemnification or such determination is deemed to have been made
pursuant to Sections 8 or 9 of this Agreement, Indemnitee shall be entitled to an adjudication in
an appropriate court of the State of Delaware, or in any other court of competent jurisdiction, of
his entitlement to such indemnification or advancement of Expenses, and Company hereby consents to
service of process and to appear in any such proceeding. Alternatively, Indemnitee, at his option,
may seek an award in arbitration to be conducted by a single arbitrator pursuant to the rules of
the American Arbitration Association. Indemnitee shall commence such proceeding seeking an
adjudication or an award in arbitration within 180 days following the date on which Indemnitee
first has the right to commence such proceeding pursuant to this Section 10(a); provided, however,
that the foregoing clause shall not apply in respect of a proceeding brought by an Indemnitee to
enforce his rights under Section 5 of the Agreement.

     (b) In the event that a determination shall have been made pursuant to Section 8 of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 10 shall be conducted in all respects as a de novo
trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that
adverse determination. If a Change of Control shall have occurred, in any judicial proceeding or
arbitration commenced pursuant to this Section 10 the Company shall have the burden of proving that
Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

     (c) If a determination shall have been made or deemed to have been made pursuant to Section 8
or 9 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound
by such determination in any judicial proceeding or arbitration commenced pursuant to this Section
10, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact
necessary to make Indemnitee’s statement not materially misleading, in connection with the request
for indemnification, or (ii) a prohibition of such indemnification under applicable law.

     (d) The Company shall be precluded from asserting in any judicial proceeding or arbitration
commenced to enforce this Agreement, including a judicial proceeding or arbitration commenced
pursuant to this Section 10, that the procedures and presumptions of this Agreement are not valid,
binding and enforceable or that there is not sufficient consideration for this Agreement and shall
stipulate in any such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement.

     (e) In the event that Indemnitee seeks a judicial adjudication of or an award in arbitration
to enforce his rights under, or to recover damages for breach of, this Agreement, Indemnitee shall
be entitled to recover from the Company, and shall be indemnified by the Company against, any and
all Expenses actually and reasonably incurred by him in such judicial adjudication or arbitration,
but only if he prevails therein. If it shall be determined in said judicial adjudication or
arbitration that Indemnitee is entitled to receive part but not all of the indemnification or
advancement of expenses sought, the expenses incurred by Indemnitee in connection with such
judicial adjudication or arbitration shall be appropriately prorated.

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     Section 11. Non-Exclusivity; Insurance, Subrogation; No Duplicate Payments.

     (a) The rights of indemnification and to receive advancement of Expenses as provided by this
Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Certificate of Incorporation, the By-Laws, any agreement, a vote
of stockholders or a resolution of directors or a committee of directors, or otherwise with respect
to actions to Indemnitee’s official capacity as well as actions in any other capacity as a result
of Indemnitee’s Corporate Status. No amendment, alteration or repeal of this Agreement or any
provision hereof shall be effective as to Indemnitee with respect to any action taken or omitted by
Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.

     (b) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, agents or fiduciaries of the Company or of
any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise
for which Indemnitee serves at the request of the Company, Indemnitee shall be covered by such
policy or policies in accordance with its or their terms to the maximum extent of the coverage
available for any such director, officer, employee or agent under such policy or policies.

     (c) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery or contribution of Indemnitee, who shall
execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such
rights.

     (d) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually
received such payment under any insurance policy, contract, agreement or otherwise.

     Section 12. Binding Effect - Survival of Rights. This Agreement shall be binding upon
and inure to the benefit of and be enforceable by the parties and their respective successors,
assigns (including any direct or indirect successors by purchase, merger, consolidation or
otherwise to all or substantially all of the business and/or assets of the Company), spouses,
heirs, executors, administrators, and personal and legal representatives. The Company shall require
and cause any successor (whether direct or indirect by purchase, merger, consolidation or
otherwise) to all, substantially all, or a substantial part of the business and/or assets of the
Company, by written agreement in form and substance satisfactory to the Indemnitee, expressly to
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform if no such succession had taken place. This Agreement shall
continue in effect for the benefit of Indemnitee and his spouse, heirs, executors, administrators,
and personal and legal representatives regardless of whether Indemnitee continues to have Corporate
Status or continues to serve as an officer or director of the Company or of any other enterprise at
the Company’s request.

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     Section 13. Limitations Period. No legal action shall be brought and no cause of action shall
be asserted by or in the right of the Company or any affiliate of the Company against Indemnitee,
Indemnitee’s spouse, heirs, executors or personal or legal representatives after the expiration of
two years from the date of accrual of such cause of action, and any claim or cause of action of the
Company or its affiliate shall be extinguished and deemed released unless asserted by the timely
filing of a legal action within such two-year period; provided, however, that if any shorter period
of limitations is otherwise applicable to any such cause of action such shorter period shall
govern.

     Section 14. Severability. The provisions of this Agreement are independent of and severable
from each other. If any provision of this Agreement shall be held to be invalid, illegal or
unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the
remaining provisions of this Agreement (including without limitation, each portion of any Section
of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that
is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired
thereby; and (b) to the fullest extent possible, the provisions of this Agreement (including,
without limitation, each portion of any Section of this Agreement containing any such provision
held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall be construed so as to give effect to the intent manifested by the provision held invalid,
illegal or unenforceable.

     Section 15. Exception to Right of Indemnification or Advancement of Expenses. Notwithstanding
any other provision of this Agreement, Indemnitee shall not be entitled to indemnification or
advancement of Expenses under this Agreement with respect to any Proceeding, or any claim therein,
brought or made by him against (a) the Company, (b) any person in control of, under the control of,
or in common control with the Company, or (c) any third party unless the Company has joined in or
consented to the initiation of such Proceeding; provided that the foregoing limitation shall not
apply to counterclaims or affirmative defenses asserted by Indemnitee in an action brought against
Indemnitee. Furthermore, and notwithstanding anything contained in this Agreement or in the
Company’s Certificate of Incorporation or By-laws (as either or both may be amended from time to
time) to the contrary, the Company shall not be obligated to indemnify or hold harmless Indemnitee
(i) if and to the extent that such indemnification shall be prohibited by applicable law; (ii) if
and to the extent that a claim in the Proceeding is decided adversely to Indemnitee based upon or
attributable to Indemnitee gaining in fact any personal profit or advantage to which Indemnitee was
not legally entitled; or (iii) if and to the extent that the indemnifiable event constituted or
arose out of Indemnitee’s knowingly fraudulent or dishonest conduct or willful misconduct or gross
negligence.

     Section 16. Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. Only one such counterpart signed by the party
against whom enforceability is sought needs to be produced to evidence the existence of this
Agreement. Any photographic or xerographic copy of this Agreement, with all signatures reproduced
on one or more sets of signatures pages, shall be considered for all purposes as if it

8

 

were an executed counterpart of this Agreement. Signatures may be given by facsimile or other
electronic transmission, and such signatures shall be fully binding on the party sending the same.

     Section 17. Headings. The headings of the paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

     Section 18. Definitions. For purposes of this Agreement:

     (a) “Change in Control” means a change in control of the Company occurring after the Effective
Date of a nature that would be required to be reported in response to item 6(e) of Schedule 14A of
Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated
under the Securities Exchange Act of 1934 (the “Act”), whether or not the Company is then subject
to such reporting requirement; provided, however, that, without limitation, such a Change in
Control shall be deemed to have occurred if after the Effective Date (i) any “person” (as such term
is used in Section 13(d) and 14(d) of the Act), together with all “affiliates” and “associates” (as
defined under Rule 12b-2 promulgated under the Act) of such person, but excluding (1) a trustee or
other fiduciary holding securities under an employee benefit plan of the Company or any subsidiary
of the Company, (2) a corporation owned, directly or indirectly, by the stockholders of the Company
in substantially the same proportions as their ownership of the Company, (3) the Company or any
subsidiary of the Company, or (4) Indemnitee, together with all affiliates and associates of
Indemnitee, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Act), directly
or indirectly, of securities of the Company representing 50% or more of the combined voting power
of the Company’s then outstanding securities without the prior approval of at least two-thirds of
the members of the Board of Directors in office immediately prior to such person attaining such
percentage interest and who are not affiliates or associates of such person(s); (ii) the Company is
a party to a merger, consolidation, sale of assets, plan of liquidation, or other reorganization,
or a proxy contest (in a single transaction or series of transactions), as a consequence of which
members of the Board of Directors in office immediately prior to such transaction or event
constitute less than a majority of the Board of Directors thereafter; or (iii) during any period of
two consecutive years, individuals who at the beginning of such period constituted the Board of
Directors (including for this purpose any new director whose election or nomination for election by
the Company’s stockholders was approved by a vote of at least two-thirds of the directors then
still in office who were directors at the beginning of such period) cease for any reason to
constitute at least a majority of the Board of Directors.

     (b) “Corporate Status” describes the status of a person who is serving or has served (i) as a
director, officer, employee, partner, trustee, agent or fiduciary of the Company, (ii) in any
capacity with respect to any employee benefit plan of the Company, or (iii) as a director, officer,
employee, partner, trustee, or agent of any other corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise which such person is or was serving at the request of the
Company. For purposes of subsection (iii) above, an officer or director of the Company who is
serving or has served as a director, officer, employee, partner, trustee, or agent of a subsidiary
of the Company shall be deemed to be serving at the request of the Company.

9

 

     (c) “Disinterested Director” means a director of the Company who is not and was not a party to
the Proceeding in respect of which indemnification is sought by Indemnitee.

     (d) “Effective Date” means the date of this Agreement.

     (e) “Expenses” shall include all reasonable attorneys’ fees, disbursements, retainers, court
costs, transcript costs, fees and disbursements of experts, witness fees and disbursements, fees
and disbursements of private investigators and professional advisors, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses paid or incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding,
including on appeal.

     (f) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporate law and neither presently is, nor in the past five years has been, retained to
represent: (i) the Company or Indemnitee in any matter material to either such party, or (ii) any
other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding
the foregoing, the term “Independent Counsel” shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under
this Agreement.

     (g) “Proceeding” includes any threatened, pending, or completed claim, action, suit,
arbitration, alternate dispute resolution mechanism, administrative hearing, appeal, inquiry or
investigation, whether civil, criminal, administrative, arbitrative, investigative, or other
(whether instituted by the Company or any other party), or any inquiry or investigation that
Indemnitee in good faith believes might lead to the institution of any such action, suit, or
proceeding, whether civil, criminal, administrative, investigative, or other, including any action,
suit, arbitration, alternate dispute resolution mechanism, administrative hearing, appeal, or any
inquiry or investigation pending on or prior to the Effective Date or initiated by an Indemnitee to
enforce his rights under this Agreement.

     Section 19. Representations and Warranties of the Company. The Company hereby
represents and warrants to Indemnitee that (a) the Company has all necessary power and authority to
enter into, and be bound by the terms of, this Agreement, (b) the execution, delivery, and
performance of the undertakings contemplated by this Agreement have been duly authorized by the
Company, and (c) when executed and delivered by the Company in accordance with the provisions
hereof, this Agreement shall be a legal, valid, and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the
enforcement of creditors’ rights generally.

     Section 20. Modification and Waiver. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver
of any of the provision of this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof (whether or not similar) nor shall such

10

 

waiver constitute a continuing waiver. No waiver shall be effective unless it is in writing
and is signed by the party asserted to have granted such waiver.

     Section 21. Notice by Indemnitee. Indemnitee agrees promptly to notify
the Company in writing upon being served with any summons, citation, subpoena, complaint,
indictment, information or other document relating to any Proceeding or matter which may be subject
to indemnification or advancement of Expenses covered hereunder.

     Section 22. Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand
and receipted for by the party to whom said notice or other communication shall have been directed,
(ii) delivered by a nationally recognized courier delivery service providing overnight or
“next-day” delivery, on the next business day after deposit with such service, or (iii) mailed by
certified or registered mail with postage prepaid, on the third business day after the date on
which it is so mailed:

	 	 	 
	(a)

	 	If to Indemnitee, to:
	

	 	John J. Zillmer
	

	 	          
	

	 	          
	

	 	 
	(b)

	 	If to the Company, to:
	

	 	Allied Waste Industries, Inc.
	

	 	15880 North Greenway Hayden Loop, Suite 100
	

	 	Scottsdale, Arizona 85260
	

	 	Attn: Steve Helm, Executive Vice President and General Counsel

or to such other address as may have been furnished to Indemnitee by the Company or to the Company
by Indemnitee, as the case may be.

     Section 23. Governing Law. The parties agree that this Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware.

     Section 24. Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of
the feminine pronoun where appropriate.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
above written.

	 	 	 	 	 	 	 
	ALLIED WASTE INDUSTRIES, INC.,	 	 	 	INDEMNITEE
	a Delaware corporation	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	

	 	 
	 	 	 	 
	

	 	Steven M. Helm, Executive Vice President
	 	 	 	John J. Zillmer
	

	 	and General Counsel	 	 	 	 

11

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