PERFORMANCE SHARE UNIT AWARD AGREEMENT
Exhibit 10.11
This Performance Share Unit Award Agreement (“Agreement”) is entered into effective as of
January 27, 2006 the “Grant Date”), by and between Waste Management, Inc., a Delaware corporation
(together with its Subsidiaries and Affiliates, the
“Company”), and << Full_NameFirst>> (the “Employee”), pursuant to
the Waste Management, Inc. 2004 Stock Incentive Plan (the “Plan”). Employee and the Company agree
to execute such further instruments and to take such further action as may reasonably be necessary
to carry out the intent of this Agreement.
1. Grant. In accordance with the terms of the Plan, the Company hereby grants to
Employee a Performance Share Unit Award (the “Award”) subject to the terms and conditions set forth
herein. Performance Share Units are notational units of measurement denominated in shares of
common stock of Waste Management, Inc., $.01 par value, (“Common Stock”), subject to the conditions
and restrictions on transferability set forth below and in the Plan.
2. Performance Vesting Requirement.
(a) The “Performance Period” for this Award shall be the 36-month period commencing on
January 1, 2006 and ending on December 31, 2008. The Award shall be subject to performance
vesting requirements based upon the achievement of the Performance Target specified below,
subject to certification of the degree of achievement of such Performance Target by the
Committee pursuant to Section 7 of the Plan.
(b) The measurement tool for determining level of achievement shall be the average
Return on Invested Capital (“ROIC”) for the 36-month period beginning January 1, 2006 and
ending December 31, 2008. ROIC is defined to mean (i) the Company’s average “as reported”
Net Operating Profit After Taxes (“NOPAT”) for the Performance Period, divided by (ii) the
Company’s average Invested Capital for the Performance Period. For purposes of this
Agreement, the average ROIC for the Performance Period will be calculated using the
following equation:
(2006 NOPAT + 2007 NOPAT + 2008 NOPAT)
(2006 Invested Capital + 2007 Invested Capital + 2008 Invested Capital)
3. Determining Number of Performance Share Units Earned.
(a)
The “Target Award” for Employee under this Agreement is <<M_Units>> Performance Share Units.
The actual number of Performance Share Units earned by Employee will be determined as
described below, based upon the actual achievement of ROIC for the Performance Period. The
“Threshold ROIC” is the minimum ROIC that must be achieved to qualify for any Award;
“Target
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ROIC” is the expected achievement in ROIC; and “Maximum ROIC” is the maximum ROIC that
could be achieved that would result in an increase in the number of Performance Share Units
earned under this Award. These targets will be announced to Employee by March 15, 2006,
following calculation of year-end financial reporting for 2005. Subject to adjustment
pursuant to Subsection 3(b), 3(c) and 3(d), each such percentage correlates to a number of
Performance Share Units that may be earned under this Award, as follows:
| Average ROIC Achieved During | Resulting Performance Share Units | |
| Performance Period | Earned | |
Threshold ROIC
|
50% of Target Award | |
Target ROIC
|
100% of Target Award | |
Maximum ROIC
|
200% of Target Award |
(b) In the event that the Company’s actual performance does not meet the Threshold
ROIC, no Performance Shares Units shall be earned under this Award.
(c) If the Company’s actual ROIC for the Performance Period is between Threshold ROIC
and Target ROIC, the number of Performance Share Units earned shall equal to the sum of (i)
the Performance Shares Units for achievement of Threshold ROIC plus (ii) the number of
Performance Shares determined under the following formula:
(TAS – TS)
|
x | (AP – TP) | ||
| TAP -TP |
TAS = Performance Share Units earned for achievement of the Target ROIC.
TS = Performance Share Units earned for achievement of the Threshold ROIC.
AP = The percent payment earned based on actual ROIC performance.
TP = The percent payment earned based on Threshold ROIC performance.
TAP = The percent payment earned based on Target ROIC performance.
TS = Performance Share Units earned for achievement of the Threshold ROIC.
AP = The percent payment earned based on actual ROIC performance.
TP = The percent payment earned based on Threshold ROIC performance.
TAP = The percent payment earned based on Target ROIC performance.
(d) If the Company’s actual ROIC for the Performance Period is between Target ROIC and
Maximum ROIC, the number of Performance Share Units earned shall equal to the sum of (i)
the Performance Share Units earned for achievement of Target ROIC plus (ii) the number of
Performance Share Units determined under the following formula:
(MS – TAS)
|
x | (AP – TAP) | ||
| MP-TAP |
MS = Performance Share Units earned for achievement of the Maximum ROIC.
TAS = Performance Share Units earned for achievement of the Target ROIC.
AP = The percent payment earned based on actual ROIC performance
TAS = Performance Share Units earned for achievement of the Target ROIC.
AP = The percent payment earned based on actual ROIC performance
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TAP = The percent payment earned based on Target ROIC performance.
MP = The percent payment earned based on Maximum ROIC performance.
MP = The percent payment earned based on Maximum ROIC performance.
4. Timing and Form of Payout. Except as hereinafter provided, after the end of the
Performance Period, Employee shall be entitled to receive his total number of Performance Shares
Units determined under Section 3. Unless timely deferred by Employee in accordance with Section 9,
upon vesting, each Performance Share Unit will be settled by payment of one share of Common Stock,
free of any restrictions. Payment of such shares of Common Stock shall be made as soon as
administratively feasible after the Committee certifies the actual performance of the Company
during the Performance Period.
5. Termination of Employment Due to Death or Disability. Upon Termination of
Employment from the Company by reason of Employee’s death or disability (as determined by the
Committee), Employee (or in the case of Employee’s death, Employee’s beneficiary) shall be entitled
to receive the Performance Share Units Employee would have been entitled to under Section 3 if he
had remained employed until the last day of the Performance Period. Unless directed otherwise
pursuant to Employee’s deferral election, the delivery of shares of Common Stock in satisfaction of
such Performance Share Units shall be made as soon as administratively feasible after the end of
the Performance Period.
6. Involuntary Termination of Employment Without Cause by the Company or Retirement by
Employee. Upon either an involuntary Termination of Employment from the Company without Cause
by the Company or a qualifying Retirement by Employee, Employee shall be entitled to receive the
Performance Share Units Employee would have been entitled to under Section 3 if he had remained
employed until the last day of the Performance Period, prorated for the number of days he was
employed during the Performance Period. Unless directed otherwise pursuant to Employee’s deferral
election, the delivery of shares of Common Stock in satisfaction of such Performance Share Units
shall be made as soon as administratively feasible after the end of the Performance Period.
7. Termination of Employment for Any Other Reason. Except as provided in Sections 5
and 6, Employee must be an employee of the Company continuously from the date of this Award until
the last day of the Performance Period to be entitled to receive any shares of Common Stock with
respect to any Performance Share Units he may have earned hereunder.
8. Acceleration upon Change in Control. Notwithstanding anything to the contrary, if
there is a Change in Control of Waste Management, Inc. prior to the end of the Performance Period,
Employee will be entitled to immediately receive both (a) and (b), as follows:
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(a) the Performance Share Units that he would have otherwise received based upon
achievement of ROIC after reducing the Performance Period so that it ends on the last day
of the quarter preceding the Change in Control (the “Early Measurement Date”) and making
adjustments to Target ROIC so as to be equal to the ROIC budgeted for that period and
appropriate adjustments to Threshold ROIC and Maximum ROIC so that they bear the same ratio
to the Threshold ROIC and Maximum ROIC amounts above as the revised Target ROIC amount bear
to the Target ROIC amount above, converted into a cash payment equivalent to the number of
Performance Share Units earned under this Section 8 multiplied by the closing price of the
Common Stock on the Early Measurement Date; and
(b) as a substitute award for the lost opportunity to earn Performance Stock Units for
the entire length of the original Performance Period:
(i) if the successor entity was a publicly traded company as of the Early
Measurement Date, an award of restricted stock units in the successor entity equal
to the number of shares of common stock of the successor entity that could have
been purchased on the Early Measurement Date with an amount of cash equal to the
product of the following equation:
TAP
|
x | EMD | x | CP | ||||
| 1096-EMD |
TAP = the number of Performance Share Units that could be earned for achievement of the original Target ROIC specified in Section 3(a)
EMD = the number of days occurring from the Grant Date to the Early Measurement Date
CP = the closing price of a share of Common Stock of Waste Management, Inc. on the Early Measurement Date
EMD = the number of days occurring from the Grant Date to the Early Measurement Date
CP = the closing price of a share of Common Stock of Waste Management, Inc. on the Early Measurement Date
Any restricted stock units in the successor entity awarded under this Section
8(b)(i) will vest completely on or before December 31, 2008, provided that Employee
remain continuously employed with the successor entity until such date. The
foregoing notwithstanding, if there is an involuntary Termination of Employee for
reason other than Cause during the Window Period, Employee will become immediately
vested in full in the restricted stock units in the successor entity awarded
pursuant to this Section 8(b)(i).
(ii) if the successor entity was not a publicly traded company as of the Early
Measurement Date, a cash payment equal to the product of the following equation:
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TAP
|
x | EMD | x | CP | ||||
| 1096-EMD |
TAP = the number of Performance Share Units that could be earned for achievement of the original Target ROIC specified in Section 3(a)
EMD = the number of days occurring from the Grant Date to the Early Measurement Date
CP = the closing price of a share of Common Stock of Waste Management, Inc. on the Early Measurement Date
EMD = the number of days occurring from the Grant Date to the Early Measurement Date
CP = the closing price of a share of Common Stock of Waste Management, Inc. on the Early Measurement Date
Any cash payment calculated under this Section 8(b)(ii) will be paid to Employee on
December 31, 2008, provided that Employee remain continuously employed with the
successor entity until such date. The foregoing notwithstanding, if there is an
involuntary Termination of Employee for reason other than Cause during the Window
Period, Employee will be paid by the successor entity the amount determined
pursuant to this Section 8(b)(ii).
9. Forfeiture of Award. Upon Termination of Employment from the Company for any
reason other than death, retirement, disability, involuntary termination by the Company without
Cause, or Change in Control, Employee shall immediately forfeit the Award, without the payment of
any consideration or further consideration by the Company. Upon forfeiture, neither Employee nor
any successors, heirs, assigns, or legal representatives of Employee shall thereafter have any
further rights or interest in the unvested portion of the Award.
10. Elective Deferrals.
(a) The Committee may establish procedures pursuant to which Employee may elect to
defer, until a time or times later than the vesting of a Performance Share Unit, receipt of
all or a portion of the shares of Common Stock deliverable in respect of a Performance
Share Unit, all on such terms and conditions as the Committee (or its designee) shall
determine in its sole discretion. If any such deferrals are permitted for Employee, then
notwithstanding any provision of this Agreement or the Plan to the contrary, an Employee
who elects such deferral shall not have any rights as a stockholder with respect to any
such deferred shares of Common Stock unless and until the date the deferral expires and
certificates representing such shares are required to be delivered to Employee.
(b) Notwithstanding any provision to the contrary in this Agreement, if deferral of
Performance Share Units is permitted, each provision of this Agreement shall be interpreted
to permit the deferral of compensation only as allowed in compliance with the requirements
of Section 409A of the Internal Revenue Code of 1986, as amended, (the “Internal Revenue
Code”) and any
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provision that would conflict with such requirements shall not be valid or
enforceable. Employee acknowledges, without limitation, and consents that application of
Section 409A of the Internal Revenue Code to this Agreement may require additional delay of
payments otherwise payable under this Agreement. Employee and the Company further hereby
agree to execute such further instruments and take such further action as reasonably may be
necessary to comply with Section 409A of the Internal Revenue Code.
11. Restrictions on Transfer.
(a) Absent prior written consent of the Committee, the Award granted hereunder to
Employee may not be sold, assigned, transferred, pledged or otherwise encumbered, whether
voluntarily or involuntarily, by operation of law or otherwise; provided, however, that the
transfer of any shares of Common Stock with respect to the Performance Share Units earned
hereunder shall not be restricted by virtue of this Agreement.
(b) Consistent with the foregoing, except as contemplated by Section 12, no right or
benefit under this Agreement shall be subject to transfer, anticipation, alienation, sale,
assignment, pledge, encumbrance or charge, whether voluntary, involuntary, by operation of
law or otherwise, and any attempt to transfer, anticipate, alienate, sell, assign, pledge,
encumber or charge the same shall be void. No right or benefit hereunder shall in any
manner be liable for or subject to any debts, contracts, liabilities or torts of the person
entitled to such benefits. If Employee or his Beneficiary hereunder shall attempt to
transfer, anticipate, alienate, assign, sell, pledge, encumber or charge any right or
benefit hereunder, other than as contemplated by Section 12, or if any creditor shall
attempt to subject the same to a writ of garnishment, attachment, execution sequestration,
or any other form of process or involuntary lien or seizure, then such attempt shall have
no effect and shall be void.
12. Assignment and Transfers. Prior to the end of the Performance Period and the
delivery of the Common Stock with respect to any Performance Share Units earned, the Award is not
transferable (either voluntarily or involuntarily), other than pursuant to a domestic relations
order. Employee may designate a beneficiary or beneficiaries (the “Beneficiary”) to whom the
Performance Share Units will pass upon Employee’s death and may change such designation from time
to time by filing a written designation of beneficiary on such form as may be prescribed by the
Company, provided that no such designation shall be effective until filed with the Company.
Following Employee’s death, the Performance Share Units will pass to the designated Beneficiary and
such person will be deemed Employee for purposes of any applicable provisions of this Agreement.
If no such designation is made or if the designated Beneficiary does not survive Employee’s death,
the Performance Share Units shall pass by will or, if none, then by the laws of descent and
distribution.
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13. Withholding Tax. To the extent that the receipt of this Award, vesting, or the
delivery of the Common Stock with respect to any Performance Share Units earned results in income
to Employee for federal or state tax purposes, Employee shall deliver to the Company at the time of
such receipt, such amount of money or shares of Common Stock earned or owned by Employee, at
Employee’s election, as the Company may require to meet its obligation under applicable tax laws or
regulations, and, if Employee fails to do so, the Company is authorized to withhold from any cash
or other form of remuneration then or thereafter payable to Employee any tax required to be
withheld by reasons of such resulting compensation income.
14. Changes in Capital Structure. If the outstanding shares of Common Stock or other
securities of Waste Management, Inc., or both, shall at any time be changed or exchanged by
declaration of a stock dividend, stock split, combination of shares, or recapitalization, the
number of Performance Share Units shall be appropriately and equitably adjusted so as to maintain
the proportionate number of shares.
15. Compliance with Securities Laws. The Company will not be required to deliver any
shares of Common Stock pursuant to this Agreement, if, in the opinion of counsel for the Company,
such issuance would violate the Securities Act of 1933 or any other applicable federal or state
securities laws or regulations. Prior to the issuance of any shares pursuant to this Agreement,
the Company may require that Employee (or Employee’s legal representative upon Employee’s death or
disability) enter into such written representations, warranties and agreements as the Company may
reasonably request in order to comply with applicable securities laws or with this Agreement.
16. Employee to Have no Rights as a Stockholder. Employee shall have no rights as a
stockholder with respect to any shares of Common Stock subject to this Award prior to the date on
which he or she is recorded as the holder of such shares of Common Stock on the records of the
Company. However, for Performance Share Units that are vested and deferred pursuant to Section 9,
the Company will pay Dividend Equivalents during the deferral period in the form, as elected by
Employee at the time of the deferral, of either (a) immediate cash payments, or (ii) additional
Performance Share Units credited to Employee’s deferral account.
17. Successors and Assigns.
(a) This Agreement shall bind and inure to the benefit of and be enforceable by
Employee, the Company and their respective permitted successors or assigns (including
personal representatives, heirs and legatees), except that Employee may not assign any
rights or obligations under this Agreement except to the extent, and in the manner,
expressly permitted herein.
(b) The Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume expressly and agree to
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perform this Agreement in the same manner and to the same extent that the Company
would be required to perform it if no such succession had taken place.
18. Limitation of Rights. Nothing in this Agreement or the Plan may be construed
to:
(a) give Employee any right to be awarded any further Performance Share Units (or
other form of stock incentive awards) other than in the sole discretion of the Committee;
(b) give Employee or any other person any interest in any fund or in any specified
asset or assets of the Company (other than the Award and applicable Common Stock following
the vesting of such Award); or
(c) confer upon Employee the right to continue in the employment or service of the
Company.
19. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of Texas, without reference to principles of conflict of laws.
20. Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement.
21. No Waiver. The failure of Employee or the Company to insist upon strict
compliance with any provision of this Agreement or the failure to assert any right Employee or the
Company may have under this Agreement shall not be deemed to be a waiver of such provision or right
or any other provision or right of this Agreement.
22. Definitions. Capitalized terms used in this Agreement and not otherwise defined
herein shall have the meanings set forth in the Plan. Certain other terms used herein have
definitions given to them in the first place in which they are used. In addition, the following
terms shall have the meanings set forth in this Section 22.
(a) “Board” means the Board of Directors of Waste Management, Inc.
(b) “Cause” means any of the following: (i) willful or deliberate and continual
refusal to materially perform Employee’s employment duties reasonably requested by the
Company after receipt of written notice to Employee of such failure to perform, specifying
such failure (other than as a result of Employee’s sickness, illness, injury, death or
disability) and Employee fails to cure such nonperformance within ten (10) days of receipt
of said written notice; (ii) breach of any statutory or common law duty of loyalty to the
Company; (iii) Employee has been convicted of, or pleaded nolo contendre to, any felony;
(iv) Employee
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willfully or intentionally caused material injury to the Company, its property, or its
assets; (v) Employee disclosed to unauthorized person(s) proprietary or confidential
information of the Company that causes a material injury to the Company; (vi) any material
violation or a repeated and willful violation of the Company’s policies or procedures,
including but not limited to, the Company’s Code of Business Conduct and Ethics (or any
successor policy) then in effect.
(c) “Change in Control” means the first to occur on or after the Grant Date of any of
the following events:
(i) any Person is or becomes 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 voting securities;
(ii) the following individuals cease for any reason to constitute a majority
of the number of directors then serving: individuals who, on the Grant Date,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation relating to the
election of directors of the Company) whose appointment or election by the Board or
nomination for election by the Company’s stockholders was approved or recommended
by a vote of at least two-thirds (2/3rds) of the directors then still in office who
either were directors on the Grant Date or whose appointment, election or
nomination for election was previously so approved or recommended (the “Incumbent
Board”);
(iii) there is a consummated merger or consolidation of the Company with any
other corporation, other than (1) a merger or consolidation which would result in
the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving or parent entity) more than fifty percent (50%)
of the combined voting power of the voting securities of the Company or such
surviving or parent entity outstanding immediately after such merger or
consolidation or (2) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no Person,
directly or indirectly, acquired twenty-five percent (25%) or more of the combined
voting power of the Company’s then outstanding securities; or
(iv) the stockholders of the Company approve a plan of complete liquidation of
the Company or there is consummated an agreement for the sale or disposition by the
Company of all or substantially all of the Company’s assets (or any transaction
having a similar effect), other than a sale or disposition by the Company of all or
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substantially all of the Company’s assets to an entity, at least fifty percent
(50%) of the combined voting power of the voting securities of which are owned by
stockholders of the Company in substantially the same proportions as their
ownership of the Company immediately prior to such sale.
For purposes of this definition, the following terms shall have the following
meanings:
(A) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3
under the Exchange Act;
(B) “Exchange Act” means the Securities and Exchange Act of 1934, as
amended from time to time;
(C) “Person” shall have the meaning set forth in Section 3(a)(9) of
the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (1) the Company, (2) a
trustee or other fiduciary holding securities under an employee benefit
plan of the Company, (3) an employee benefit plan of the Company, (4) an
underwriter temporarily holding securities pursuant to an offering of such
securities or (5) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of shares of Common Stock.
This definition of Change in Control will be modified if and to the extent necessary
to ensure compliance with the requirements of Section 409A of the Internal Revenue Code,
and Employee and the Company agree to execute such further instruments and take such
further action as reasonably may be necessary to comply with Section 409A of the Internal
Revenue Code.
(d) “Committee” means the Compensation Committee of the Board or such other committee
of the Board as the Board may designate from time to time.
(e) “Depreciation and Amortization Costs and Expenses” has the meaning assigned in
Item 6 of the Form 10-K filed with the Securities and Exchange Commission by the Waste
Management, Inc. on February 20, 2004. And, for purposes of this Award, shall be
calculated in accordance with the accounting pronouncements, polices and classifications
used therein.
(f) “Dividend Equivalent” means an amount of cash equal to all dividends and other
distributions (or the economic equivalent thereof) that are payable by the Company on one
share of Common Stock to stockholders of record, which, in the discretion of the Committee,
may be awarded (i) in connection with any Award under the Plan while such Award is
outstanding or
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otherwise subject to a Restriction Period and on a like number of shares of Common
Stock under such Award or (ii) singly. Dividend Equivalents will be paid at such time as
dividends are paid on the Company’s outstanding shares of Common Stock.
(g) “EBIT” means the sum of Operating Revenue, less Operating Costs and Expenses, less
Selling, General and Administrative Costs and Expenses, less Depreciation and Amortization
Costs and Expenses.
(h) “Goodwill” means the excess of the cost of an acquired company over the sum of the
fair market value of its identifiable individual assets less the liabilities. For purposes
of calculation of this Award, the value of Goodwill shall be the balance of such as
reported by Waste Management, Inc. as of December 31 for each applicable year.
(i) “Invested Capital” means economic resources that are expected to help generate
future cash inflows or help reduce future cash outflows. Invested Capital is equivalent to
current maturities of long term debt, plus long term debt, plus shareholders equity, less
cash and less Goodwill. For purposes of calculation of this Award, the value of Invested
Capital shall be the balance of such as reported by Waste Management, Inc. as of December
31 for each applicable year.
(j) “Net Operating Profit After Taxes” or “NOPAT” means the product of EBIT multiplied
by the sum of 1 minus the Tax Rate.
(k) “Operating Costs and Expenses” has the meaning assigned in Item 6 of the Form 10-K
filed with the Securities and Exchange Commission by Waste Management, Inc. on February 20,
2004, exclusive of Depreciation and Amortization. And, for purposes of this Award,
Operating Costs and Expenses shall be calculated in accordance with the accounting
pronouncements, policies and classifications used in that Form 10-K.
(l) “Operating Revenue” has the meaning assigned in Item 6 of the Form 10-K filed with
the Securities and Exchange Commission by the Waste Management, Inc. on February 20, 2004.
And, for purposes of this Award, Operating Revenue shall be calculated in accordance with
the accounting pronouncements, polices and classifications used in that Form 10-K.
(m) “Retirement” means the voluntary resignation of employment by Employee, after
Employee: (i) has attained the age of 55 or greater; (ii) has a sum of age plus full years
of Service with the Company equal to 65 or greater; and, (iii) has completed at least 5
consecutive full years of Service with the Company during the 5 year period immediately
preceding the resignation.
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(n) “Selling, General and Administrative Costs and Expenses” has the meaning assigned
in Item 6 of the Form 10-K filed with the Securities and Exchange Commission by Waste
Management, Inc. on February 20, 2004. And, for purposes of this Award, Selling, General
and Administrative Costs and Expenses shall be calculated in accordance with the accounting
pronouncements, polices and classifications used in that Form 10-K.
(o) “Service” is measured from Employee’s original date of hire by the Company, except
as provided below. In the case of a break of employment by Employee from the Company of
one year or more in length, Employee’s service before the break of employment shall not be
included in his or her Service hereunder. In the case of service with an entity acquired
by the Company, Employee’s service with such entity shall be considered Service hereunder,
so long as Employee remained continuously employed with such predecessor company(ies) and
the Company. In the case of a break of employment between a predecessor company and the
Company of any length, Employee’s Service shall be measured from the original date of hire
by the Company and shall not include any service with any predecessor company.
(p) “Tax Rate” is equal to 38.8%, and shall be assumed to remain constant for the
Performance Period.
(q) “Termination of Employment” means the termination of Employee’s employment with
the Company. Temporary absences from employment because of illness, vacation or leave of
absence and transfers among Waste Management, Inc. and its Subsidiaries and Affiliates will
not be considered a Termination of Employment. Any questions as to whether and when there
has been a Termination of Employment, and the cause of such termination, shall be
determined by the Committee, and its determination will be final.
(r) “Window Period” means the period commencing on the date occurring six (6) months
immediately prior to the date on which a Change in Control first occurs and ending the
second anniversary of the date on which a Change in Control occurs.
23. Entire Agreement.
(a) Employee hereby acknowledges that he has received, reviewed and accepted the terms
and conditions applicable to this Agreement. Employee hereby accepts such terms and
conditions, subject to the provisions of the Plan and administrative interpretations
thereof. Employee further agrees that such terms and conditions will control this
Agreement, notwithstanding any provisions in any employment agreement or in any prior
awards.
(b) Employee hereby acknowledges that he is to consult with and rely upon only
Employee’s own tax, legal, and financial advisors regarding the
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consequences and risks of this Agreement and the award of Performance Share Units.
(c) This Agreement may not be amended or modified except by a written agreement
executed by the parties hereto or their respective successors and legal representatives.
The captions of this Agreement are not part of the provisions hereof and shall have no
force or effect.
24. Counterparts. This Agreement may be executed in counterparts, which together
shall constitute one and the same original.
IN WITNESS WHEREOF, Waste Management, Inc. has caused this Agreement to be duly executed by
one of its officers thereunto duly authorized, which execution may be facsimile, engraved or
printed, which shall be deemed an original, and Employee has executed this Agreement, effective as
of the day and year first above written.
| WASTE MANAGEMENT, INC. | ||||
| By: | /s/ Xxxxx XxXxxxxx | |||
| Xxxxx XxXxxxxx | ||||
| Senior Vice-President, People | ||||
| EMPLOYEE | ||||
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