Document:

exv10w1

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     WASTE MANAGEMENT, INC., for and on behalf of its affiliated corporations
(collectively referred to as the “Company”), and CHERIE RICE (the “Employee”)
agree to enter into this EMPLOYMENT AGREEMENT (the “Agreement”) dated as of
July 17, 1998 as follows:

     1.     Employment.

     The Company shall employ Employee, and Employee shall be employed by the
Company upon the terms and subject to the conditions set forth in this
Agreement.

     2.     Term of Employment.

     The period of Employee’s employment under this Agreement shall be for a period
of one year, beginning on August 1, 1998, and shall be continually renewing for
a period of one (1) year thereafter unless terminated pursuant to the
provisions of Section 5 of this Agreement. Company.

     3.     Duties and Responsibilities.

     (a)  Employee shall serve as Vice President, Investor Relations. In
such capacity, Employee shall perform such duties as may be assigned to
Employee from time to time by Company.

     (b)  Employee shall faithfully serve the Company, devote Employee’s full
working time, attention and energies to the business of the Company and
perform the duties under this Agreement to the best of Employee’s
abilities.

     (c)  Employee shall (i) comply with all applicable laws, rules and
regulations, and all requirements of all applicable regulatory,
self-regulatory, and administrative bodies; (ii) comply with the
Company’s rules, procedures, policies, requirements, and directions;
and (iii) not engage in any other business or employment without the
written consent of the Company except as otherwise specifically
provided herein.

     4.     Compensation and Benefits.

     (a)  Base Salary. During the Employment Term, the Company shall pay
Employee a base salary at the annual rate of one hundred thirty-seven
thousand ($137,000.) dollars per year, or such higher rate as may be
determined from time to time by the Company (“Base Salary”). Such Base
Salary shall be paid in accordance with the Company’s standard payroll
practice for employees.

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     (b)  Expense Reimbursement. The Company shall promptly reimburse
Employee for the ordinary and necessary business expenses incurred by
Employee in the performance of Employee’s duties hereunder in
accordance with the Company’s customary practices applicable to
employees, provided that such expenses are incurred and accounted for
in accordance with the Company’s policy.

     (c)  Benefit Plans. Employee shall be eligible to participate in or
receive benefits under any pension plan, profit sharing plan, medical
and dental benefits plan, life insurance plan, short-term and long-term
disability plans, supplemental and/or incentive compensation plans,
practices or arrangements, or any other benefit plan or arrangement,
generally made available by the Company to employees of similar status
and responsibilities (“similarly situated employees”).

     (d)  Stock Options. Employee shall be awarded fifteen (15,000) Waste
Management, Inc., stock options, subject to the approval of the
Compensation Committee of the Board of Directors.

     5.     Termination of Employment.

     Employee’s employment hereunder may be terminated under the following
circumstances:

     (a)  Death. Employee’s employment hereunder shall terminate upon
Employee’s death.

     (b)  Total Disability. The Company may terminate Employee’s employment
hereunder upon Employee’s becoming “Totally Disabled”. For purposes of
this Agreement, Employee shall be “Totally Disabled” if Employee is
physically or mentally incapacitated so as to render Employee incapable
of performing the usual and customary duties under this Agreement.
Employee’s receipt of disability benefits under the Company’s long-term
disability plan or receipt of Social Security disability benefits shall
be deemed conclusive evidence of Total Disability for purpose of this
Agreement; provided, however, that in the absence of Employee’s receipt
of such long-term disability benefits of Social Security benefits, the
Company may, in its reasonable discretion (but based upon appropriate
medical evidence), determine that Employee is Totally Disabled.

     (c)  Termination by the Company for Cause. The Company may terminate
Employee’s employment hereunder for “Cause” at any time after providing
written notice to Employee.

	 	(i)	 	For purposes of this Agreement, the term “Cause” shall
mean any of the
following: (A) conviction of a crime (including conviction on a
nolo contendere plea) involving a felony or, in the good faith
judgment of the Company, fraud, dishonesty, or moral turpitude; (B)
deliberate and continual refusal to perform employment duties
reasonably requested by the

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	 	 	 	Company or an affiliate after thirty (30) days’ written notice by
certified mail of such failure to perform, specifying that the
failure constitutes cause (other than as a result of vacation,
sickness, illness or injury); (C) fraud or embezzlement determined
in accordance with the Company’s normal, internal investigative
procedures consistently applied in comparable circumstances; (D)
gross misconduct or gross negligence in connection with the
business of the Company or an affiliate which has substantial
effect on the Company or the affiliate; or (E) breach of any of the
covenants set forth in Section 7 hereof.
	 
	 	(ii)	 	An individual will be considered to have been terminated
for Cause if the Company determines that the individual engaged in
an act constituting Cause at any time prior to a payment date for
an award, regardless of whether the individual terminates
employment voluntarily or is terminated involuntarily, and
regardless of whether the individual’s termination initially was
considered to have been for Cause.
	 
	 	(iii)	 	Any determination of Cause under this Agreement shall be
made by the Company after giving Employee a reasonable opportunity
to be heard.

     (d)  Voluntary Termination by Employee. Employee may terminate employment
hereunder at any time after providing ten (10) days’ written notice to the
Company.

     (e)  Termination by the Company without Cause. The Company may terminate
Employee’s employment hereunder without Cause at any time after providing
written notice to Employee.

     6.     Compensation Following Termination of Employment.

     In the event that Employee’s employment hereunder is terminated, Employee shall
be entitled to the following compensation and benefits upon such termination:

     (a)  Termination by Reason of Death. In the event that Employee’s employment
is terminated by reason of Employee’s death, the Company shall pay the
following amounts to Employee’s beneficiary or estate:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to the
date of death, any accrued but unpaid expenses required to be
reimbursed under this Agreement, and any vacation accrued to the date
of death.
	 
	 	(ii)	 	Any benefits to which Employee may be entitled pursuant to the
plans, policies and arrangements referred to in Section 4(c) hereof as
determined and paid in accordance with the terms of such plans,
policies and arrangements.

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     (b)  Termination by Reason of Total Disability. In the event that Employee’s
employment is terminated by reason of Employee’s Total Disability as
determined in accordance with Section 5(b), the Company shall pay the
following amounts to Employee:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to the
dates of termination, any accrued but unpaid expenses required to be
reimbursed under this Agreement, any vacation accrued to the date of
termination.
	 
	 	(ii)	 	Any benefits to which Employee may be entitled pursuant to the
plans, policies and arrangements referred to in Section 4(c) hereof
shall be determined and paid in accordance with the terms of such
plans, policies and arrangements.
	 
	 	(iii)	 	An amount equal to

	 	(A)	 	the Base Salary (at the rate in effect as of the
date of Employee’s Total Disability) which would have been
payable to Employee if Employee had continued in active
employment until the end of the six (6) month period beginning
on the date of Employee’s termination; reduced by
	 
	 	(B)	 	the maximum annual amount of the long term disability
benefits payable to Employee under the Company’s long-term
disability plan as determined prior to the reduction of such
benefits under the terms of the plan for other disability income
(if long-term disability [LTD] benefits are payable, pursuant to
the terms of the applicable LTD plan, during the six (6) month
period referred to in Section 6[b][iii][A] above).

	 	 	 	Payment shall be made at the same time and in the same manner as such
compensation would have been paid if Employee had remained in active
employment until the end of such period.

     (c)  Termination for Cause or Voluntary Termination by Employee. In the
event that Employee’s employment is terminated by the Company for Cause
pursuant to Section 5(c), or Employee terminates employment pursuant to
Section 5(d), the Company shall pay the following amounts to Employee:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to
the date of termination, any accrued but unpaid expenses required to
be reimbursed under this Agreement, any vacation accrued to the date
of termination.
	 
	 	(ii)	 	Any benefits to which Employee may be entitled pursuant to
the plans, policies and arrangements referred to in Section 4(c)
hereof shall be determined and paid in accordance with the terms of
such plans, policies and arrangements.

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     (d)  Termination by the Company Without Cause. In the event that Employee’s
employment is terminated by the Company pursuant to Section 5(e) for
reasons other than death, Total Disability or Cause, the Company shall
pay the following amounts to Employee:

	 	(i)	 	Any accrued but unpaid Base Salary for services rendered to
the date of termination, any accrued but unpaid expenses required to
be reimbursed under this Agreement, any vacation accrued to the date
of termination.
	 
	 	(ii)	 	Any benefits to which Employee may be entitled pursuant to
the plans, policies and arrangements referred to in Section 4(c)
hereof shall be determined and paid in accordance with the terms of
such plans, policies and arrangements.
	 
	 	(iii)	 	The Base Salary (at the rate in effect as of the date of
Employee’s termination) which would have been payable to Employee if
Employee had continued in active employment until the end of the
twelve (12) month period beginning on the date of Employee’s
termination. Payment shall be made at the same time and in the same
manner as such compensation would have been paid if Employee had
remained in active employment until the end of such period. The
Employee shall also be eligible for a bonus or incentive
compensation payment to the extent bonuses are paid to similarly
situated employees, pro-rated for the year in which the Employee is
terminated, and paid when similarly situated employees are paid.
	 
	 	(iv)	 	The Company completely at its expense will continue for
Employee and Employee’s spouse and dependents, group health plans,
programs or arrangements, in which Employee was entitled to
participate at any time during the twelve-month period prior to the
date of termination, until the earlier of: (A) last day of period
during which Employee receives payment in accordance with clause
(iii) above; (B) Employee’s death (provided that benefits payable to
Employee’s beneficiaries shall not terminate upon Employee’s death);
or (C) with respect to any particular plan, program or arrangement,
the date Employee becomes covered by a comparable benefit provided
by a subsequent employer.

     (e)  No Other Benefits or Compensation. Except as may be provided under
this Agreement, under the terms of any incentive compensation, employee
benefit, or fringe benefit plan applicable to Employee at the time of
Employee’s termination or resignation of employment, Employee shall have
no right to receive any other compensation, or to participate in any
other plan, arrangement or benefit, with respect to future periods after
such termination or resignation.

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     (f)  Suspension or Termination of Benefits and Compensation. In the event
that the Company, in its sole discretion determines that, without the
Company’s express written consent, Employee has

	 	(i)	 	directly or indirectly engaged in, assisted or have any
active interest or involvement whether as an employee, agent,
consultant, creditor, advisor, officer, director, stockholder
(excluding holding of less than 1% of the stock of a public
company), partner, proprietor, or any type of principal whatsoever,
in any person, firm, or business entity which is directly or
indirectly competitive with the Company or any of its affiliates, or
	 
	 	(ii)	 	directly or indirectly, for or on behalf of any person, firm,
or business entity which is directly or indirectly competitive with
the Company or any of its affiliates (A) solicited or accepted from
any person or entity who is or was a client of the Company during
the term of Employee’s employment hereunder or during any of the
twelve calendar months preceding or following the termination of
Employee’s employment any business for services similar to those
rendered by the Company, (B) requested or advised any present or
future customer of the Company to withdraw, curtail or cancel its
business dealings with the Company, or (C) requested or advised any
employee of the Company to terminate his or her employment with the
Company;

the Company shall have the right to suspend or terminate any or all
remaining benefits payable pursuant to Section 6 of this Agreement. Such
suspension or termination of benefits shall be in addition to and shall
not limit any and all other rights and remedies that the Company may have
against Employee.

     7.     Restrictive Covenants

     In consideration of the specialized training Employee has received, the
access Employee has had to confidential and proprietary information and
other promises of the Company contained in this Agreement, Employee agrees
as follows:

     (a)  Competitive Activity. Employee covenants and agrees that at all
times during Employee’s period of employment with the Company, and
while Employee is receiving payments pursuant to Section 6 of this
Agreement, Employee will not, directly or indirectly, engage in,
assist, or have any active interest or involvement, whether as an
employee, agent, consultant, creditor, advisor, officer, director,
stockholder (excluding holding of less than 1% of the stock of a public
company), partner, proprietor or any type of principal whatsoever in
any person, firm, or business entity which, directly or indirectly, is
engaged in the same business as that conducted and carried on by the
Company, without the Company’s specific written consent to do so.
Furthermore, for a period of one (1) year after the date of termination
of Employee’s employment, whether such termination is voluntary or
involuntary, by wrongful discharge, or otherwise, or

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one (1) year following the cessation of payments made pursuant to
Section 6 of this Agreement, whichever date is later, Employee will
not directly or indirectly, within 75 miles of the principal place of
business of the Company, the principal place of business of any
corporation or other entity owned, controlled by (or otherwise
affiliated with) the Company by which Employee may also be employed or
served by Employee, or any other geographic location in which Employee
has specifically represented the interests of the Company or such
other affiliated entity, during the twelve (12) months prior to the
termination of Employee’s employment, engage in, assist, or have any
active interest or involvement, whether as an employee, agent,
consultant, creditor, advisor, officer, director, stockholder
(excluding holding of less than 1% of the stock of a public company),
partner, proprietor or any type of principal whatsoever in any person,
firm, or business entity which, directly or indirectly, is engaged in
the same business as that conducted and carried on by the Company,
without the Company’s specific written consent to do so.

     (b)  Non-Solicitation. Employee covenants and agrees that at all times
during Employee’s period of employment with the Company, and for a
period of one (1) year after the date of termination of Employee’s
employment, whether such termination is voluntary or involuntary, by
wrongful discharge, or otherwise, or the date of the cessation of
payments made to the Employee pursuant to Section 6 of this Agreement,
whichever is later, Employee will not directly or indirectly (i) induce
any customers of the Company or corporations affiliated with the
Company; (iii) directly or indirectly request or advise any customers
of the Company or corporations affiliated with the Company to withdraw,
curtail or cancel such customer’s business with the Company; (iv)
directly or indirectly disclose to any other person, firm or
corporation the names or addresses of any of the customers of the
Company or corporations affiliated with the Company; or (v)
individually of through any person, firm, association or corporation
with which Employee is now or may hereafter become associated, cause,
solicit, entice, or induce any present or future employee of the
Company, or any corporation affiliated with the Company to leave the
employ of the Company, or such other corporation to accept employment
with, or compensation from, the Employee or any such person, firm,
association or corporation without the prior written consent of the
Company.

     (c)  Non-Disparagement. Employee covenants and agrees that Employee
shall not engage in any pattern of conduct that involves the making or
publishing of written or oral statements or remarks (including, without
limitation, the repetition or distribution of derogatory rumors,
allegations, negative reports or comments) which are disparaging,
deleterious or damaging to the integrity, reputation or good will of
the Company, its management, or management of corporations affiliated
with the Company.

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     (d)  Protected Information. Employee recognizes and acknowledges that
Employee has had and will continue to have access to various
confidential or proprietary information concerning the Company and
corporations affiliated with the Company of a special and unique value
which may include, without limitation, (i) books and records relating
to operation, finance, accounting, sales, personnel and management,
(ii) policies and matters relating particularly to operations such as
customer service requirements, costs of providing service and
equipment, operating costs and pricing matters, and (iii) various trade
or business secrets, including business opportunities, marketing or
business diversification plans, business development and bidding
techniques, methods and processes, financial data and the like
(collectively, the “Protected Information”). Employee therefore
covenants and agrees that Employee will not at any time, either while
employed by the Company or afterwards, knowingly make any independent
use of, knowingly disclose to any other person or organization (except
as authorized by the Company) any of the Protected Information.

     8.     Enforcement of Covenants.

     (a)  Termination of Employment and Forfeiture of Compensation. Employee
agrees that any breach by Employee of any of the covenants set forth in
Section 7 hereof during Employee’s employment by the Company, shall be
grounds for immediate dismissal of Employee and forfeiture of any
accrued and unpaid salary, bonus, commissions or other compensation of
such Employee as liquidated damages, which shall be in addition to and
not exclusive of any and all other rights and remedies the Company may
have against Employee.

     (b)  Right to Injunction. Employee acknowledges that a breach of the
covenants set forth in Section 7 hereof will cause irreparable damage to
the Company with respect to which the Company’s remedy at law for
damages will be inadequate. Therefore, in the event of breach of
anticipatory breach of the covenants set forth in this section by
Employee, Employee and the Company agree that the Company shall be
entitled to the following particular forms of relief, in addition to
remedies otherwise available to it at law or equity; (i) injunctions,
both preliminary and permanent, enjoining or retraining such breach or
anticipatory breach and Employee hereby consents to the issuance thereof
forthwith and without bond by any court of competent jurisdiction; and
(ii) recovery of all reasonable sums expended and costs, including
reasonable attorney’s fees, incurred by the Company to enforce the
covenants set forth in this section.

     (c)  Separability of Covenants. The covenants contained in Section 7
hereof constitute a series of separate covenants, one for each
applicable State in the United States and the District of Columbia, and
one for each applicable foreign country. If in any judicial proceeding,
a court shall hold that any of the covenants set forth in Section 7
exceed the time, geographic, or occupational

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limitations permitted by applicable laws, Employee and the Company
agree that such provisions shall and are hereby reformed to the
maximum time, geographic, or occupational limitations permitted by
such laws. Further, in the event a court shall hold unenforceable any
of the separate covenants deemed included herein, then such
unenforceable covenant or covenants shall be deemed eliminated from
the provisions of this Agreement for the purpose of such proceeding to
the extent necessary to permit the remaining separate covenants to be
enforced in such proceeding. Employee and the Company further agree
that the covenants in Section 7 shall each be construed as a separate
agreement independent of any other provisions of this Agreement, and
the existence of any claim or cause of action by Employee against the
Company whether predicated on this Agreement or otherwise, shall not
constitute a defense to the enforcement by the Company of any of the
covenants of Section 7.

     9.     Withholding of Taxes.

     The Company may withhold from any compensation and benefits payable under
this Agreement all applicable federal, state, local, or other taxes.

     10.     Non-Disclosure of Agreement Terms.

     Employee agrees that Employee will not disclose the terms of this Agreement
to any third party other than Employee’s immediate family, attorney,
accountants, or other consultants or advisors or except as may be required
by any governmental authority.

     11.     Source of Payments.

     All payments provided under this Agreement, other than payments made
pursuant to a plan which provides otherwise, shall be paid from the general
funds of the Company, and no special or separate fund shall be established,
and no other segregation of assets made, to assure payment. Employee shall
have no right, title or interest whatever in or to any investments which the
Company may make to aid the Company in meeting its obligations hereunder. To
the extent that any person acquires a right to receive payments from the
Company hereunder, such right shall be no greater than the right of an
unsecured creditor of the Company.

     12.     Assignment.

     Except as otherwise provided in this Agreement, this Agreement shall inure
to the benefit of and be binding upon the parties hereto and their
respective heirs, representatives, successors and assigns. This Agreement
shall not be assignable by Employee.

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     13.     Entire Agreement; Amendment.

     This Agreement shall supersede any and all existing oral or written
agreements, representations, or warranties between Employee and the Company
or any of its subsidiaries or affiliated entities relating to the terms of
Employee’s employment by the Company. It may not be amended except by a
written agreement signed by both parties.

     14.     Governing Law.

     This Agreement shall be governed by and construed in accordance with the
laws of the State of Texas applicable to agreements made and to be performed
in that State, without regard to its conflict of laws provisions.

     15.     Notices.

     Any notice, consent, request or other communication made or given in
connection with this Agreement shall be in writing and shall be deemed to
have been duly given when delivered or mailed by registered or certified
mail, return receipt requested, or by facsimile or by hand delivery, to
those listed below at their following respective addresses or at such other
address as each may specify by notice to the others:

	 	 	 	 	 
	

	 	To the Company:
	 	Waste Management, Inc.
	

	 	 	 	1001 Fannin, Suite 4000
	

	 	 	 	Houston, Texas 77002
	

	 	 	 	Attention: Corporate Secretary
	 
	 	 	 	 
	

	 	To Employee:
	 	At the address for Employee set forth below.

     16.     Miscellaneous.

     (a)  Waiver. The failure of a party to insist upon strict adherence to
any term of this Agreement on any occasion shall not be considered a
waiver thereof or deprive that party of the right thereafter to insist
upon strict adherence to that term or any other term of this Agreement.

     (b)  Separability. Subject to Section 8 hereof, if any term or
provision of this Agreement is declared illegal or unenforceable by any
court of competent jurisdiction and cannot be modified o be
enforceable, such term or provision shall immediately become null and
void, leaving the remainder of this Agreement in full force and effect.

     (c)  Headings. Section headings are used herein for convenience of
reference only and shall not affect the meaning of any provision of
this Agreement.

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     (d)  Rules of Construction. Whenever the context so requires, the use of
the singular shall be deemed to include the plural and vice versa.

     (e)  Counterparts. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an
original, and such counterparts will together constitute but one
Agreement.

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

	 	 	 	 	 
	 	 	WASTE MANAGEMENT, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Susan J. Piller
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Name:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Date:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	EMPLOYEE
	 
	 	 	 	 
	 	 	/s/ Cherie C. Rice
	 	 	
 
	 
	 	 	 	 
	

	 	Date:
	 	July 17, 1998
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Address:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	
 

Page 11 of 11exv10w2

 

EXHIBIT 10.2

EMPLOYMENT AGREEMENT

WASTE MANAGEMENT, INC. (the “Company”), and Greg A Robertson (the “Employee”)
hereby enter into this EMPLOYMENT AGREEMENT (the “Agreement”) dated as of
August 1, 2003, as follows:

	1.	 	Employment.

The Company shall employ Employee, and Employee shall be employed by the
Company upon the terms and subject to the conditions set forth in this
Agreement.

	2.	 	Term of Employment.

The period of Employee’s employment under this Agreement shall begin as of
August 1, 2003, and shall continue for a period of one (1) year thereafter (the
“Employment Term”), unless terminated pursuant to the terms of this Agreement.
Employment beyond the Employment Term shall continue thereafter in accordance
with the terms hereof, unless terminated pursuant to the terms of Sections 5
and 6 of this Agreement.

	3.	 	Duties and Responsibilities.

	(a)	 	Employee shall serve as Vice President, Assistant Controller, and shall
be based at the Company’s corporate offices in Houston, Texas. Employee
will report to SVP, Chief Accounting Officer, or as assigned by SVP, Chief
Accounting Officer.
	 
	(b)	 	Employee shall faithfully serve the Company, and/or its affiliated
corporations, devote Employee’s full working time, attention and energies
to the business of the Company, and/or its affiliated corporations, and
perform the duties under this Agreement to the best of Employee’s
abilities. Employee may make and manage his personal investments,
provided such investments in other activities do not violate, in any
material respect, the provisions of Section 8 of this Agreement.
	 
	(c)	 	Employee shall (i) comply with all applicable laws, rules and
regulations, and all requirements of all applicable regulatory,
self-regulatory, and administrative bodies; (ii) comply with the Company’s
rules, procedures, policies, requirements, and directions; and (iii) not
engage in any other business or employment without the written consent of
the Company, except as otherwise specifically provided herein.

	4.	 	Compensation and Benefits.

	(a)	 	Base Salary. During the Employment Term, the Company shall pay Employee
an annual base salary of no less than ONE HUNDRED-NINETY NINE THOUSAND,
FIVE HUNDRED DOLLARS ($199,500.00) per year, or such higher rate as may be
determined from time to time by the Company (“Base Salary”). Such Base
Salary shall be paid in accordance with the Company’s standard payroll
practice for Employees.
	 
	(b)	 	Expense Reimbursement. The Company shall promptly reimburse Employee for
the ordinary and necessary business expenses incurred by Employee in the
performance of the duties hereunder in accordance with the Company’s
customary practices applicable to Employees, provided that such expenses
are incurred and accounted for in accordance with the Company’s policy.
	 
	(c)	 	Benefit Plans. Employee shall be eligible to participate in or receive
benefits under any pension plan, profit sharing plan, medical and dental
benefits plan, life insurance plan, short-term and long-term

Page 1 of 13

 

	 	 	disability plans, supplemental and/or incentive compensation plans, or
any other fringe benefit plan, generally made available by the Company to
Employees working pursuant to this form of Agreement (hereinafter
referred to as “Similarly Situated Employees”).

	(d)	 	Incentive/Bonus. Employee shall be eligible for an annual bonus or
incentive compensation payment (“Bonus”) with an annual target bonus of
fifty percent (50%) of Employee’s Base Salary, a maximum of one hundred
percent (100%) of Employee’s Base Salary. Qualification and conditions
for earning the Bonus shall be pursuant to the applicable Bonus Plan in
effect for the year in which the bonus is earned, as approved by the
Compensation Committee of the Board of Directors. The Bonus for the year
2003 will be paid in 2004, if earned, at the same time as Similarly
Situated Employees receive or would otherwise receive their bonuses,
provided Employee remains employed through the end of the 2003 calendar
year.
	 
	(e)	 	Stock Options. Employee shall be eligible to be considered for annual
option grants. The award, vesting and exercise of all options shall be
subject to the provisions of the applicable Waste Management, Inc. Stock
Incentive Plan.
	 
	(f)	 	Vacation. Employee will be entitled to paid vacation in accordance with
the Company’s policies but in no event less than three (3) weeks each
year.
	 
	5.	 	Termination of Employment.

Employee’s employment hereunder may be terminated under the following
circumstances:

	(a)	 	Death. Employee’s employment hereunder shall terminate upon Employee’s
death.
	 
	(b)	 	Total Disability. The Company may terminate Employee’s employment
hereunder upon Employee becoming “Totally Disabled”. For purposes of this
Agreement, Employee shall be “Totally Disabled” if Employee is physically
or mentally incapacitated so as to render Employee incapable of performing
Employee’s usual and customary duties under this Agreement. Employee’s
receipt of disability benefits under the Company’s long-term disability
plan or receipt of Social Security disability benefits shall be deemed
conclusive evidence of Total Disability for purpose of this Agreement;
provided, however, that in the absence of Employee’s receipt of such
long-term disability benefits or Social Security benefits, the Company’s
Board of Directors may, in its reasonable discretion (but based upon
appropriate medical evidence), determine that Employee is Totally
Disabled.
	 
	(c)	 	Termination by the Company for Cause. The Company may terminate
Employee’s employment hereunder for “Cause” at any time after providing
written notice to Employee.

	(i)	 	For purposes of this Agreement, the term “Cause” shall mean
any of the following: (A) conviction of a crime (including
conviction on a nolo contendere plea) involving a felony or, in the
good faith judgment of the Company’s Board of Directors, fraud,
dishonesty, or moral turpitude; (B) deliberate and continual refusal
to perform employment duties reasonably requested by the Company or
an affiliate after thirty (30) days’ written notice by certified
mail of such failure to perform, specifying that the failure
constitutes cause (other than as a result of vacation, sickness,
illness or injury); (C) fraud or embezzlement determined in
accordance with the Company’s normal, internal investigative
procedures; (D) gross misconduct or gross negligence in connection
with the business of the Company or an affiliate which has
substantial effect on the Company or the affiliate; or (E) breach of any of the
covenants set forth in Section 8 hereof.

Page 2 of 13

 

	(ii)	 	An individual will be considered to have been terminated for
Cause if the Company determines that the individual engaged in an
act constituting Cause at any time prior to a payment date for any
amounts due hereunder, regardless of whether the individual
terminates employment voluntarily or is terminated involuntarily,
and regardless of whether the individual’s termination initially was
considered to have been for Cause.
	 
	(iii)	 	Any determination of Cause under this Agreement shall be
made by resolution of the Company’s Board of Directors adopted by
the affirmative vote of not less than a majority of the entire
membership of the Board of Directors at a meeting called and held
for that purpose and at which Employee is given an opportunity to be
heard.

	(d)	 	Voluntary Termination by Employee. Employee may terminate employment
hereunder at any time after providing ninety (90) days’ written notice to
the Company, or for good reason as described in Section 7 of this
Agreement.
	 
	(e)	 	Termination by the Company without Cause. The Company may terminate
Employee’s employment hereunder without Cause at any time after providing
written notice to Employee.
	 
	6.	 	Compensation Following Termination of Employment.
	 
	 	 	In the event that Employee’s employment hereunder is terminated, Employee shall
be entitled to the following compensation and benefits upon such termination:
	 
	(a)	 	Termination by Reason of Death. In the event that Employee’s employment
is terminated by reason of Employee’s death, the Company shall pay the
following amounts to Employee’s beneficiary or estate:

	(i)	 	Any accrued but unpaid Base Salary for services rendered to
the date of death, any accrued but unpaid expenses required to be
reimbursed under this Agreement through the date of termination; a
pro-rata “Bonus” or incentive compensation payment to the extent
payments are awarded to Similarly Situated Employees and paid at the
same time as Similarly Situated Employees are paid; and any vacation
accrued to the date of death.
	 
	(ii)	 	Any benefits to which Employee may be entitled pursuant to
the plans, policies and arrangements referred to in Section 4(c)
hereof as determined and paid in accordance with the terms of such
plans, policies and arrangements.
	 
	(iii)	 	An amount equal to the Base Salary (at the rate in effect as
of the date of Employee’s death) which would have been payable to
Employee if Employee had continued in employment for a period of
twelve (12) months. Such amount shall be paid in a single lump sum
cash payment within thirty (30) days after Employee’s death.
	 
	(iv)	 	As of the date of termination by reason of Employee’s death,
stock options awarded to Employee shall be fully vested and
Employee’s estate or beneficiary shall have up to one (1) year from
the date of death to exercise all such options, provided that in no
event will any option be exercisable beyond its term.

Page 3 of 13

 

	(b)	 	Termination by Reason of Total Disability. In the event that Employee’s
employment is terminated by reason of Employee’s Total Disability as
determined in accordance with Section 5(b), the Company shall pay the
following amounts to Employee:

	(i)	 	Any accrued but unpaid Base Salary for services rendered to
the date of termination, any accrued but unpaid expenses required to
be reimbursed under this Agreement through the date of termination,
any vacation accrued to the date of termination. Employee shall
also be eligible for a Bonus or incentive compensation payment to
the extent such awards are made to Similarly Situated Employees,
pro-rated for the year in which Employee is terminated and paid at
the same time as similarly situated Employees are paid.
	 
	(ii)	 	Any benefits to which Employee may be entitled pursuant to
the plans, policies and arrangements referred to in Section 4(c)
hereof shall be determined and paid in accordance with the terms of
such plans, policies and arrangements.
	 
	(iii)	 	The Base Salary (at the rate in effect as of the date of
Employee’s Total Disability) which would have been payable to
Employee if Employee had continued in active employment for a period
of twelve (12) months. Payment shall be made at the same time and
in the same manner as such compensation would have been paid if
Employee had remained in active employment until the end of such
period.
	 
	(iv)	 	As of the date of termination by reason of Employee’s Total
Disability, Employee shall be fully vested in all stock option
awards and Employee shall have up to one (1) year from the date of
termination by reason of Total Disability to exercise all such
options; provided that in no event will any option be exercisable
beyond its term.

	(c)	 	Termination for Cause. In the event that Employee’s employment is
terminated by the Company for Cause pursuant to Section 5(c), the Company
shall pay the following amounts to Employee:

	(i)	 	Any accrued but unpaid Base Salary for services rendered to
the date of termination, any accrued but unpaid expenses required
to be reimbursed under this Agreement through the date of
termination, and any vacation accrued to the date of termination.
	 
	(ii)	 	Any benefits to which Employee may be entitled pursuant to
the plans, policies and arrangements referred to in Section 4(c)
hereof shall be determined and paid in accordance with the terms of
such plans, policies and arrangements.
	 
	(iii)	 	Any options, restricted stock or other awards that have not
vested prior to the date of such termination of employment shall be
cancelled and any options held by Employee shall be cancelled,
whether or not then vested.

	(d)	 	Voluntary Termination by Employee. In the event that Employee terminates
employment pursuant to Section 5(d), and other than for a resignation
tendered pursuant to Section 7 of this Agreement, the Company shall pay
the following amounts to Employee:

	(i)	 	Any accrued but unpaid Base Salary for services rendered to
the date of termination, any accrued but unpaid expenses required to
be reimbursed under this Agreement through the date of termination,
and any vacation accrued to the date of termination.

Page 4 of 13

 

	(ii)	 	Any benefits to which Employee may be entitled pursuant to
the plans, policies and arrangements referred to in Section 4(c)
hereof shall be determined and paid in accordance with the terms of
such plans, policies and arrangements.
	 
	(iii)	 	Any options, restricted stock or other awards that have not
vested prior to the date of such termination of employment shall be
cancelled and Employee shall have 90 days following termination of
employment to exercise any previously vested options; provided that
in no event will any option be exercisable beyond its term.

	(e)	 	Termination by the Company Without Cause. In the event that Employee’s
employment is terminated by the Company pursuant to Section 5(e) for
reasons other than death, Total Disability or Cause, the Company shall pay
the following amounts to Employee:

	(i)	 	Any accrued but unpaid Base Salary for services rendered to
the date of termination, any accrued but unpaid expenses required to
be reimbursed under this Agreement through the date of termination,
and any vacation accrued to the date of termination.
	 
	(ii)	 	Any benefits to which Employee may be entitled pursuant to
the plans, policies and arrangements referred to in Section 4(c)
hereof shall be determined and paid in accordance with the terms of
such plans, policies and arrangements.
	 
	(iii)	 	An amount equal to the sum of Employee’s annual Base Salary
plus his or her target annual bonus (as then in effect), of which
one-half shall be paid in a lump sum within ten (10) days after such
termination and one-half shall be paid during the one (1) year
period beginning on the date of Employee’s termination and shall be
paid at the same time and in the same manner as Base Salary would
have been payable to Employee if Employee had continued in active
employment until the end of such period.
	 
	(iv)	 	In addition, if you timely elect under COBRA to continue the
group health and/or dental insurance coverage you participated as of
your employment termination date, the Company will pay the portion
of the COBRA premium in excess of your regular employee premium
contribution until the earlier of: (A) last day of period during
which Employee receives payment in accordance with clause (iii)
above; (B) Employee’s death (provided that benefits payable to
Employee’s beneficiaries shall not terminate upon Employee’s death);
or (C) with respect to any particular plan, program or arrangement,
the date Employee becomes entitled to be covered by a comparable
benefit provided by a subsequent employer. Thereafter, if you have
any remaining COBRA eligibility you will bear the full cost of
continued COBRA coverage.
	 
	(v)	 	Employee shall continue to vest in all stock option awards or
restricted stock awards over the one (1) year period commencing on
the date of such termination. Employee shall have ninety (90) days
following the expiration of such one (1) year period to exercise all
options to the extent then vested, provided that in no event will
any option be exercisable beyond its term.

	(f)	 	No Other Benefits or Compensation. Except as may be provided under this
Agreement, under the terms of any incentive compensation, employee
benefit, or fringe benefit plan applicable to Employee at the time of
Employee’s termination or resignation of employment, Employee shall have
no right to receive any other compensation, or to participate in any other
plan, arrangement or benefit, with respect to future periods after such
termination or resignation. In no event shall Employee be entitled

Page 5 of 13

 

	 	 	to receive any compensation or benefits under any such other plan or arrangement
that is similar to the benefits provided by this Agreement.

	(g)	 	Suspension or Termination of Benefits and Compensation. In the event
that the Company, in its sole discretion determines that, without the
Company’s express written consent, Employee has:

	(i)	 	directly or indirectly engaged in, assisted or have any
active interest or involvement whether as an employee, agent,
consultant, creditor, advisor, officer, director, stockholder
(excluding holding of less than 1% of the stock of a public
company), partner, proprietor, or any type of principal whatsoever,
in any person, firm, or business entity which is directly or
indirectly competitive with the Company or any of its affiliates, or
	 
	(ii)	 	directly or indirectly, for or on behalf of any person, firm,
or business entity which is directly or indirectly competitive with
the Company or any of its affiliates (A) solicited or accepted from
any person or entity who is or was a client of the Company during
the term of Employee’s employment hereunder or during any of the
twelve calendar months preceding or following the termination of
Employee’s employment any business for services similar to those
rendered by the Company, (B) requested or advised any present or
future customer of the Company to withdraw, curtail or cancel its
business dealings with the Company, or (C) requested or advised any
employee of the Company to terminate his or her employment with the
Company;

the Company shall have the right to suspend or terminate any or all
remaining benefits payable pursuant to Section 6 of this Agreement. Such
suspension or termination of benefits shall be in addition to and shall
not limit any and all other rights and remedies that the Company may have
against Employee.

	7.	 	Resignation by Employee for Good Reason and Compensation Payable
	 
	(a)	 	Resignation for Good Reason following Change in Control. In the event a
“Change in Control” (as defined in Section 7(c)) occurs, Employee will be
paid the compensation described in this Section 7 if Employee resigns or
is terminated (both a “resignation” and “termination” being referred to as
“termination” for the purposes of this Section 7) from employment with the
Company at any time prior to the six (6) month anniversary of the date of
the Change in Control following the occurrence of any of the following
events:

	(i)	 	without Employee’s express written consent, the assignment to
Employee of any duties inconsistent with Employee’s positions,
duties, responsibilities and status with the Company immediately
before a Change in Control, or a material adverse change in
Employee’s reporting (other than a change which results in Employee
reporting to a Senior Vice President of the Company or higher),
responsibilities, titles or offices as in effect immediately before
a Change in Control, or any removal of Employee from any of such
positions, except in connection with the termination of Employee’s
employment as a result of death, or by the Company for Disability or
Cause, or by Employee other than for the reasons described in this
Section 7(a);
	 
	(ii)	 	a reduction by the Company in Employee’s Base Salary as in
effect immediately before a Change in Control plus all increases
therein subsequent thereto;

Page 6 of 13

 

	(iii)	 	the failure of the Company substantially to maintain and to
continue Employee’s participation in the Company’s benefit plans as
in effect immediately before a Change in Control and with all
improvements therein subsequent thereto (other than those plans or
improvements that have expired thereafter in accordance with their original terms or those
plans which are replaced with similar plans providing substantially
similar benefits), or the taking of any action which would
materially reduce Employee’s benefits under any of such plans or
deprive Employee of any material fringe benefit enjoyed by Employee
immediately before a Change in Control, unless such reduction or
termination is required by law (and excluding reductions or changes
which are replaced by substantially similar benefits under other
plans or programs);
	 
	(iv)	 	the failure of the Company to provide Employee with an
appropriate adjustment to compensation such as a lump sum relocation
bonus, salary adjustment and/or housing allowance so that Employee
can purchase comparable primary housing if required to relocate (it
being the intention of this Section 7[a][iv] to keep the Employee
“whole” if required to relocate). In this regard, comparable
housing shall be determined by comparing factors such as location
(taking into account, by way of example, items such as the value of
the surrounding neighborhood, reputation of the public school
district, if applicable, security and proximity to Employee’s place
of work), quality of construction, design, age, size of the housing
and the ratio of the monthly payments including principle, interest,
taxes and insurance to the Employee’s take home pay, to housing most
recently owned by Employee prior to, or as of the effective date of
the Change in Control;
	 
	(v)	 	the failure by the Company to pay Employee any portion of
Employee’s current compensation, or any portion of Employee’s
compensation deferred under any plan, agreement or arrangement of or
with the Company, within seven (7) days of the date such
compensation is due; or
	 
	(v)	 	the failure by the Company to obtain an assumption of, and
agreement to perform the obligations of the Company under this
Agreement by any successor to the Company.

	(b)	 	Resignation for Good Reason following a forced reassignment. In the
event that the employee resigns as a result of, and within the six month
anniversary of the date of, a forced relocation that is more than fifty
(50) miles from his current business location, Employee will be paid the
compensation described in this Section 7.
	 
	(c)	 	Compensation Payable. In the event that Employee terminates employment
pursuant to Section 7(a) or (b), the Company shall pay the following
amounts to Employee:

	(i)	 	Any accrued but unpaid Base Salary for services rendered to
the date of termination; any accrued but unpaid expenses required to
be reimbursed under this Agreement through the date of termination;
any accrued and unused vacation to the date of termination.
	 
	(ii)	 	Any benefits to which Employee may be entitled pursuant to
the plans, policies and arrangements referred to in Section 4(d)
hereof, shall be determined and paid in accordance with the terms of
such plans, policies and arrangements.
	 
	(iii)	 	An amount equal to the sum of Employee’s annual Base Salary
plus Employee’s target annual bonus (in each case as then in
effect). Such amount shall be paid to Employee in a single

Page 7 of 13

 

	 	 	lump sum cash payment within ten (10) business days after the effective date
of Employee’s termination.
	 
	(iv)	 	Employee will be 100% vested in all benefits, awards, and
grants (including stock options) accrued but unpaid as of the date
of termination under any non-qualified pension plan,
supplemental and/or incentive compensation or bonus plans, in which
Employee was a participant as of the date of termination. Employee
shall have until the first anniversary of Employee’s termination of
employment in which to exercise the options which have vested
pursuant to this section, but in no event beyond the term of the
option.

Except as may be provided under this Section 7 or under the terms of any
incentive compensation, employee benefit, or fringe benefit plan
applicable to Employee at the time of Employee’s resignation from
employment, Employee shall have no right to receive any other
compensation, or to participate in any other plan, arrangement or
benefit, with respect to future periods after such resignation or
termination. IN no event shall Employee be entitled to receive any
compensation or benefits under any such other plan or arrangement that is
similar to the benefits provided under this Agreement.

	(d)	 	Certain Additional Payments by the Company. In the event that any
portion of the benefits payable under this Agreement, and any other
payments and benefits under any other agreement with, or plan of the
Company to or for the benefit of the Employee (in aggregate, “Total
Payments”) constitute an “excess parachute payment” within the meaning of
Section 280G of the Internal Revenue Code (the “Code”), then the Company
shall pay the Employee as promptly as practicable following such
determination an additional amount (the “Gross-up Payment”) calculated as
described below to reimburse the Employee on an after-tax basis for any
excise tax imposed on such payments under Section 4999 of the Code. The
Gross-up Payment shall equal the amount, if any, needed to ensure that the
net parachute payments (including the Gross-up Payment) actually received
by the Employee after the imposition of federal and state income,
employment and excise taxes (including any interest or penalties imposed
by the Internal Revenue Service), are equal to the amount that the
Employee would have netted after the imposition of federal and state
income and employment taxes, had the Total Payments not been subject to
the taxes imposed by Section 4999. For purposes of this calculation, it
shall be assumed that the Employee’s tax rate will be the maximum federal
rate to be computed with regard to Section 1(g) of the Code.
	 
	 	 	In the event that the Employee and the Company are unable to agree as to
the amount of the Gross-up Payment, if any, the Company shall select a
law firm or accounting firm from among those regularly consulted (during
the twelve-month period immediately prior to a Change-in-Control) by the
Company regarding federal income tax matters and such law firm or
accounting firm shall determine the amount of Gross-up Payment and such
determination shall be final and binding upon the Employee and the
Company.
	 
	(e)	 	Change in Control. For purposes of this Agreement, “Change in Control”
means the occurrence of any of the following events:

	(i)	 	Any transfer to, assignment to, or any acquisition by any
person, corporation or other entity, or group thereof, of the
beneficial ownership, within the meaning of Section 13(d) of the
Securities Exchange Act of 1934, of any securities of the Company,
which transfer, assignment or acquisition results in such person,
corporation, entity, or group thereof, becoming the beneficial
owner, directly or indirectly, of securities of the Company
representing twenty-five percent (25%) or more of the combined
voting power of the Company’s then outstanding securities; or

Page 8 of 13

 

	(ii)	 	As a result of a tender offer, merger, consolidation, sale of
assets, or contested election, or any combination of such
transactions, the persons who were directors immediately before the
transaction shall cease to constitute a majority of the Board of
Directors of the Company or any successor to the Company.

	8.	 	Restrictive Covenants
	 
	(a)	 	Competitive Activity. Employee covenants and agrees that at all times
during Employee’s period of employment with the Company, and during the
period that payments are made to Employee pursuant to Section 6 of this
Agreement, Employee will not engage in, assist, or have any active
interest or involvement, whether as an employee, agent, consultant,
creditor, advisor, officer, director, stockholder (excluding holding of
less than 1% of the stock of a public company), partner, proprietor or any
type of principal whatsoever in any person, firm, or business entity
which, directly or indirectly, is engaged in the same business as that
conducted and carried on by the Company, without the Company’s specific
written consent to do so. Employee further agrees that for a period of
one (1) year after the date payments made to Employee pursuant to Section
6 of this Agreement cease, or for a period of two (2) years following the
date of termination, whichever is later, Employee will not, directly or
indirectly, within 75 miles of any operating location of any affiliate of
the Company, engage in, assist, or have any active interest or
involvement, whether as an employee, agent, consultant, creditor, advisor,
officer, director, stockholder (excluding holding of less than 1% of the
stock of a public company), partner, proprietor or any type of principal
whatsoever in any person, firm, or business entity which, directly or
indirectly, is engaged in the same business as that conducted and carried
on by the Company or any of its affiliated companies, without the
Company’s specific written consent to do so.
	 
	(b)	 	Non-Solicitation. Employee covenants and agrees that at all times
during Employee’s period of employment with the Company, and for a period
of one (1) year after the date payments made to Employee pursuant to
Section 6 of this Agreement cease, or two (2) years after the date of
termination of the Employee’s employment, whichever date is later, whether
such termination is voluntary or involuntary by wrongful discharge, or
otherwise, Employee will not directly or indirectly (i) induce any
customers of the Company or corporations affiliated with the Company to
patronize any similar business which competes with any material business
of the Company; (ii) canvass, solicit or accept any similar business from
any customer of the Company or corporations affiliated with the Company;
(iii) directly or indirectly request or advise any customers of the
Company or corporations affiliated with the Company to withdraw, curtail
or cancel such customer’s business with the Company; (iv) directly or
indirectly disclose to any other person, firm or corporation the names or
addresses of any of the customers of the Company or corporations
affiliated with the Company; or (v) individually of through any person,
firm, association or corporation with which Employee is now or may
hereafter become associated, cause, solicit, entice, or induce any present
or future employee of the Company, or any corporation affiliated with the
Company to leave the employ of the Company, or such other corporation to
accept employment with, or compensation from, the Employee or any such
person, firm, association or corporation without the prior written consent
of the Company.
	 
	(c)	 	Non-Disparagement. Employee covenants and agrees that Employee shall not
engage in any pattern of conduct that involves the making or publishing of
written or oral statements or remarks (including, without limitation, the
repetition or distribution of derogatory rumors, allegations, negative
reports or comments) which are disparaging, deleterious or damaging to the
integrity, reputation or good will of the Company, its management, or of
management of corporations affiliated with the Company.

Page 9 of 13

 

	(d)	 	Protected Information. Employee recognizes and acknowledges that
Employee has had and will continue to have access to various confidential
or proprietary information concerning the Company and corporations
affiliated with the Company of a special and unique value which may
include, without limitation, (i) books and records relating to operation,
finance, accounting, sales, personnel and management, (ii) policies,
procedures, and matters relating particularly to the Company or its
operations, including customer service requirements, costs of providing service and
equipment, operating costs and pricing matters, and (iii) various trade
or business secrets, including customer lists, route sheets, business
opportunities, marketing or business diversification plans, business
development and bidding techniques, training materials, methods and
processes, proprietary information, financial data and the like
(collectively, the “Protected Information”). Employee therefore covenants
and agrees that Employee will not at any time, either while employed by
the Company or afterwards, knowingly make any independent use of, or
knowingly disclose to any other person or organization (except as
authorized by the Company) any of the Protected Information.

	9.	 	Enforcement of Covenants.
	 
	(a)	 	Termination of Employment and Forfeiture of Compensation. Employee
agrees that any breach by Employee of any of the covenants set forth in
Section 8 hereof during Employee’s employment by the Company, shall be
grounds for immediate dismissal of Employee and forfeiture of any accrued
and unpaid salary, bonus, commissions or other compensation of such
Employee as liquidated damages, which shall be in addition to and not
exclusive of any and all other rights and remedies the Company may have
against Employee.
	 
	(b)	 	Right to Injunction. Employee acknowledges that a breach of the
covenants set forth in Section 8 hereof will cause irreparable damage to
the Company with respect to which the Company’s remedy at law for damages
will be inadequate. Therefore, in the event of breach of anticipatory
breach of the covenants set forth in this section by Employee, Employee
and the Company agree that the Company shall be entitled to the following
particular forms of relief, in addition to remedies otherwise available to
it at law or equity; (i) injunctions, both preliminary and permanent,
enjoining or restraining such breach or anticipatory breach and Employee
hereby consents to the issuance thereof forthwith and without bond by any
court of competent jurisdiction; and (ii) recovery of all reasonable sums
expended and costs, including reasonable attorney’s fees, incurred by the
Company to enforce the covenants set forth in this section.
	 
	(c)	 	Separability of Covenants. The covenants contained in Section 8 hereof
constitute a series of separate covenants, one for each applicable State
in the United States and the District of Columbia, and one for each
applicable foreign country. If in any judicial proceeding, a court shall
hold that any of the covenants set forth in Section 8 exceed the time,
geographic, or occupational limitations permitted by applicable laws,
Employee and the Company agree that such provisions shall and are hereby
reformed to the maximum time, geographic, or occupational limitations
permitted by such laws. Further, in the event a court shall hold
unenforceable any of the separate covenants deemed included herein, then
such unenforceable covenant or covenants shall be deemed eliminated from
the provisions of this Agreement for the purpose of such proceeding to the
extent necessary to permit the remaining separate covenants to be enforced
in such proceeding. Employee and the Company further agree that the
covenants in Section 8 shall each be construed as ancillary to this
Agreement, and the existence of any claim or cause of action by Employee
against the Company whether predicated on this Agreement or otherwise,
shall not constitute a defense to the enforcement by the Company of any of
the covenants of Section 8.

Page 10 of 13

 

	10.	 	Withholding of Taxes.
	 
	 	 	The Company may withhold from any compensation and benefits payable under this
Agreement all applicable federal, state, local, or other taxes.
	 
	11.	 	Non-Disclosure of Agreement Terms.
	 
	 	 	Employee agrees that Employee will not disclose the terms of this Agreement to
any third party other than Employee’s immediate family, attorney, accountants,
or other consultants or advisors or except as may be required by any
governmental authority.
	 
	12.	 	Source of Payments.
	 
	 	 	All payments provided under this Agreement, other than payments made pursuant
to a plan which provides otherwise, shall be paid from the general funds of the
Company, and no special or separate fund shall be established, and no other
segregation of assets made, to assure payment. Employee shall have no right,
title or interest whatever in or to any investments which the Company may make
to aid the Company in meeting its obligations hereunder. To the extent that
any person acquires a right to receive payments from the Company hereunder,
such right shall be no greater than the right of an unsecured creditor of the
Company.
	 
	13.	 	Assignment.
	 
	 	 	Except as otherwise provided in this Agreement, this Agreement shall inure to
the benefit of and be binding upon the parties hereto and their respective
heirs, representatives, successors and assigns. This Agreement shall not be
assignable by Employee, and shall be assignable by the Company only to any
financially solvent corporation or other entity resulting from the
reorganization, merger or consolidation of the Company with any other
corporation or entity or any corporation or entity to or with which the
Company’s business or substantially all of its business or assets may be sold,
exchanged or transferred, and it must be so assigned by the Company to, and
accepted as binding upon it by, such other corporation or entity in connection
with any such reorganization, merger, consolidation, sale, exchange or transfer
(the provisions of this sentence also being applicable to any successive such
transaction).
	 
	14.	 	Entire Agreement; Amendment.
	 
	 	 	This Agreement shall supersede any and all existing oral or written agreements,
representations, or warranties between Employee and the Company or any of its
subsidiaries or affiliated entities relating to the terms of Employee’s
employment by the Company. It may not be amended except by a written agreement
signed by both parties.
	 
	15.	 	Governing Law.
	 
	 	 	This Agreement shall be governed by and construed in accordance with the laws
of the State of Texas applicable to agreements made and to be performed in that
State, without regard to its conflict of laws provisions.
	 
	16.	 	Notices.

Page 11 of 13

 

Any notice, consent, request or other communication made or given in connection
with this Agreement shall be in writing and shall be deemed to have been duly
given when delivered or mailed by registered or certified mail, return receipt
requested, or by facsimile or by hand delivery, to those listed below at their
following respective addresses or at such other address as each may specify by
notice to the others:

	 	 	 	 	 
	

	 	To the Company:
	 	Waste Management, Inc.

1001 Fannin, Suite 4000

Houston, Texas 77002

Attention: Corporate Secretary

	 
	 	 	 	 
	

	 	To Employee:
	 	At the address for Employee set forth below.

	17.	 	Miscellaneous.
	 
	(a)	 	Waiver. The failure of a party to insist upon strict adherence to any
term of this Agreement on any occasion shall not be considered a waiver
thereof or deprive that party of the right thereafter to insist upon
strict adherence to that term or any other term of this Agreement.
	 
	(b)	 	Separability. Subject to Section 9 hereof, if any term or provision of
this Agreement is declared illegal or unenforceable by any court of
competent jurisdiction and cannot be modified to be enforceable, such term
or provision shall immediately become null and void, leaving the remainder
of this Agreement in full force and effect.
	 
	(c)	 	Headings. Section headings are used herein for convenience of reference
only and shall not affect the meaning of any provision of this Agreement.
	 
	(d)	 	Rules of Construction. Whenever the context so requires, the use of the
singular shall be deemed to include the plural and vice versa.
	 
	(e)	 	Counterparts. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original,
and such counterparts will together constitute but one Agreement.

Page 12 of 13

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
effective as of the day and year first above written.

	 	 	 
	WASTE MANAGEMENT, INC.
	 
	By:  /s/ Jimmy LaValley
	 	 	
 
	 
	 	 
	

	 	Senior Vice-President
	 
	 	 
	Date: 12/19/03
	 
	 	 
	EMPLOYEE:
	 
	 	 
	     /s/ Greg A Robertson
	
 
	Greg A Robertson
	 
	 	 
	Address:

	 
	 	 
	Date: 12/19/03

Page 13 of 13

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