EMPLOYMENT AGREEMENT
Exhibit 10.1
This EMPLOYMENT AGREEMENT (this "Agreement"), is made and entered into effective as of the 20th day of October, 2023 (the "Effective Date") by and between WASTE CONNECTIONS OF CANADA INC. (the "Company") and XXX XXX ("Employee") (the Company and Employee are sometimes collectively referred to herein as the "Parties"). The Parties acknowledge and agree that for purposes of this Agreement, the Company and its parent, subsidiaries and affiliates, past or current, including but not limited to Waste Connections, Inc. (the "Parent"), shall be collectively referred to as "WCI."
WHEREAS, the Company desires to employ Employee for the period provided in this Agreement, and Employee wishes to accept employment by the Company for such period, on the terms and conditions set forth below;
AND WHEREAS, Employee acknowledges that the nature of his role with the Company is a chief executive position, and that he owes fiduciary obligations to the Company;
AND WHEREAS, the Company recognizes Employee's service to March 23, 2010 as minimally required under Applicable Employment Standards Legislation (as defined in Section 4.6 below);
NOW, THEREFORE, in consideration of the Company: (a) offering to employ Employee under the terms of this Agreement; (b) providing Employee eligibility to receive Waste Connections, Inc. equity grants, thereby aligning Employee's interests with WCI's interest in long-term success; (c) entrusting to Employee new and updated Confidential Information (as defined in Section 5 below) on a past and ongoing basis relating to WCI's business; (d) providing Employee specialized training related to WCI's business; (e) allowing Employee access to Company business plans, customers and prospective customers and the ability to use and develop goodwill with them; (f) providing Employee eligibility and participation in the Waste Connections, Inc. 2016 Incentive Award Plan (as amended, restated or superseded, if applicable) for 2024; (g) providing the Accelerated RSU Vesting defined and described in Section 7.3(b) below; (h) providing the salary increase described is Section 4.1 below; (i) offering the Transitional Employment Status/benefit contemplated in Section 11 below; and (j) providing a one-time signing bonus of $100 to be paid within 30 days of signing, each of which Employee acknowledges and agrees constitutes good and valuable consideration, Employee agrees to and accepts the conditions of employment set forth in this Agreement.
| Employment Agreement: Xxx Xxx Xxxxxxxx: /s/ DP | Page 1 |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 2 |
such Equity Awards shall be governed by the relevant plans under which they are issued and described in detail in applicable agreements between the Parent and Employee. |
4.6 | Applicable Employment Standards Legislation. For clarity, the term "Applicable Employment Standards Legislation" when used in this Agreement shall mean the Employment Standards Act, 2000 (in Ontario), including regulations proclaimed thereunder, as may be amended from time to time or such successor legislation. |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 3 |
Company or its related entities, all of which constitute a valuable part of the assets of the Company and WCI, as applicable, and Employee acknowledges his agreement to protect such Confidential Information is a material inducement to the terms of consideration being offered to Employee as part of this Agreement. |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 4 |
requested or required by the Company, Employee shall leave with or return to the Company all originals and copies of the foregoing then in Employee's possession or subject to Employee's control, whether in hard-copy or electronic format and whether prepared by Employee or by others. |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 5 |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 6 |
herein as of the date a payment is scheduled to be paid, the Severance payment by the Company shall be paid in accordance with the Company's normal payroll practices through such Severance Period. To confirm, the Severance is inclusive of statutory termination pay and statutory severance pay that may be payable under Applicable Employment Standards Legislation. Employee agrees that the Company may deduct from any payments hereunder Employee's benefit plan contributions which were regularly made during the term of this Agreement and Employee’s employment in accordance with the benefit plans' terms. |
1. | all outstanding but unvested Equity Awards for which, on the Date of Termination, only time-based vesting is applicable, shall, on the Date of Termination (i) for share options, immediately vest and become exercisable, and (ii) for all other Equity Awards, any and all restrictions thereon shall immediately lapse and such Equity Awards shall become fully vested and settled as soon as administratively practicable thereafter; |
2. | all outstanding but unvested Equity Awards for which, on the Date of Termination, performance-based vesting is applicable, the de performance goals for such awards shall be deemed to have been satisfied (and, for any award with different levels of potential payment, such performance shall be deemed to be at the target level) and any remaining vesting conditions shall be deemed to be satisfied on the Date of Termination and such Equity Awards shall be settled as soon as administratively practicable thereafter; and |
3. | the term of any share options shall be extended to the earlier of (i) the third anniversary of the Date of Termination or (ii) the expiration of the original term of such share options. |
By executing this Agreement, Employee acknowledges that extending the term of any incentive share option to which the Accelerated Vesting Benefit applies could cause such Equity Award to lose its tax-qualified status, and agrees that the Company shall have no obligation to compensate Employee or, if applicable Employee’s heirs, executors, administrators, legatees, beneficiaries or assigns, for any additional taxes incurred as a result of such extension.
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 7 |
Employee's discretion, he may elect to receive a lump sum payment of Fifteen Thousand Dollars ($15,000) in lieu of the Outplacement Benefit. The election to take payment in lieu of the Outplacement Benefit must occur before Employee has received any reimbursement under the Outplacement Benefit. |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 8 |
entities/persons, including, subject to applicable law, a release of all claims under all relevant plans pursuant to which Employee’s Equity Awards were granted and any related agreements between the Company and/or the Parent and Employee (as amended, restated or superseded from time to time, the "Plan Documents"). For greater certainty, except to the extent such entitlements are required by Applicable Employment Standards Legislation, no Severance shall be paid, and none of the Accelerated Vesting Benefit, Health Insurance Benefit or Outplacement Benefit shall be provided, until Employee has executed a general release as provided for in this Section 7.6. Should Employee fail to comply with the terms of the general release or this Agreement, the Company shall be relieved of any obligation to make payments or provide other entitlements to Employee under Sections 7.3, 7.4 and 7.5 that are in excess of those minimally required by Applicable Employment Standards Legislation and in its sole discretion may seek repayment of any payments already made to Employee under Sections 7.3, 7.4 or 7.5 that are in excess of minimum payments and other entitlements due to Employee pursuant to Applicable Employment Standards Legislation. Repayment is due within thirty (30) days of written demand by the Company. |
7.7 | No Limitation on Company's Right to Terminate. Any other provision in this Agreement to the contrary notwithstanding, the Company shall have the right, in its absolute discretion, to terminate Employee's employment hereunder at any time in accordance with the foregoing provisions of this Section 7, it being the intent and purpose of the foregoing provisions of this Section 7 only to set forth the consequences of termination with respect to Severance or other compensation payable to Employee on termination in the circumstances indicated, if applicable. |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 9 |
9.3 | Non-Renewal of this Agreement. For the avoidance of doubt, the Company’s notice of its intent not to extend the Term of this Agreement shall be treated as a termination of Employee by the Company without Cause. |
9.4 | Cause. For purposes of this Agreement, the term "Cause" as applicable to Section 7.1 shall mean: |
(a) | gross negligence or willful misconduct of a material nature in connection with the performance of Employee’s duties; |
(b) | Employee's conviction of (or pleading guilty to) an indictable offense; |
(d) | any act, omission or conduct that constitutes just cause at common law; |
(e) | a material breach by Employee of any of the obligations under this Agreement or any other agreement with the Company or an affiliate of the Company or any policy of the Company or the Parent; or |
(f) | a breach (material or otherwise) of any of the provisions of Sections 5 or 6 above or Section 12 below, or with respect to Employee's fiduciary obligations; |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 10 |
amount shall be payable in a lump sum on or within sixty (60) days following the Date of Termination. Employee's participation in all benefits shall continue for the minimum duration required by Applicable Employment Standards Legislation, if any. In addition, Employee shall be entitled to receive the Accelerated Vesting Benefit, the Health Insurance Benefit and the Outplacement Benefit (together with the Change in Control Payment, the "Change in Control Benefits"). Employee's receipt of Change in Control Benefits under this Section 10.1 is contingent on the same terms as set out above in Section 7.3. For clarity, in order to receive any payments and other entitlements under this Section 10.1 that are in excess of the minimum payments as required by Applicable Employment Standards Legislation, Employee must execute a general release in favour of the Company, in a form provided by the Company. Should Employee fail to execute or fail to comply with the general release agreement, or should Employee violate his obligations under Sections 5, 6, or 12, herein, the Company shall be relieved of any obligation to make payments under this Section 10.1 that are in excess of those minimum entitlements as required by Applicable Employment Standards Legislation, and the Company, in its sole discretion, may seek repayment from Employee of any payments already made to Employee under Section 10.1 that are in excess of minimum payments or other entitlements due to Employee pursuant to Applicable Employment Standards Legislation. Repayment is due within thirty (30) days of written demand by the Company. |
11.1 | Application Process. If Employee satisfies the criteria described in Section 11.3 below and wishes to retire at a future date certain, Employee may submit an application to the CEO to be placed on Transitional Employment status. An application for Transitional Employment status must be submitted not later than December 31st of the calendar year immediately preceding the calendar year of the desired effective date of the change in |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 11 |
status. The CEO shall review each application and, in his or her sole discretion, may approve such status change; provided, however, that the CEO may, in his or her sole discretion, decline to approve Employee’s application under this Section 11. In such event, Employee may choose to continue in employment under the terms of this Agreement, or may choose to resign pursuant to Section 8 of this Agreement. |
11.2 | Written Agreement. If Employee’s application for Transitional Employment status is approved, Employee will enter into a Transitional Employment Agreement with the Company that will include: (a) the effective date of the change in status, which shall not be earlier than six (6) months or later than twelve (12) months after the date the request is made; (b) a reduced level of Base Salary; (c) Employee’s new title and service location; (d) Employee’s fixed period of continued employment, which shall be not less than two (2) years from the effective date of the change in status, unless a shorter period of continued service is approved by the CEO at the time Transitional Employment status is granted; and (e) an acknowledgment by Employee of the applicability of the policies established from time to time by the Company and Parent, including the Code of Conduct and Ethics, to Employee’s continued employment during his or her Transitional Employment status. |
11.4 | Additional Terms. Notwithstanding any provision of this Agreement to the contrary, the following shall apply to Employee upon the effective date of the change in status specified in his or her Transitional Employment Agreement: (a) Employee will retain all then outstanding Equity Awards as described in Section 4.3, which shall continue to be administered in accordance with their terms; and (b) Employee will not, in the ordinary course of business, receive any additional Bonuses, Equity Awards, grants or awards under the Company's and/or Parent's performance bonus plan, equity compensation plan, or similar incentive compensation programs. |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 12 |
is a chief executive role with the Company), the opportunity being provided by the Company to receive Equity Awards and thereby align Employee's interests with WCI's interests in long-term success, and the nature and depth of the Confidential Information that WCI shares with Employee, it is reasonable for the Company to expect Employee not to engage in any business principally focused on liquid, semi-solid or solid waste collection, transportation, disposal, recycling and/or composting, and the operation of transfer stations, recycling facilities, materials recovery facilities or landfills, and/or any other business engaged in by WCI and as to which Employee had involvement and/or received Confidential Information (the "Restricted Business"), anywhere in any county of any U.S. state, or any province or territory in Canada over which Employee has management authority with WCI, or about which Employee has access to Confidential Information relating to WCI's current or planned operations in such province or territory (the "Restricted Territory")1 during his employment and for the time periods set out below in Section 12.2. The Parties agree that for the purposes of this Agreement, Employee has management authority over all locations of the Company in Canada and in WCI’s Southern and Eastern Regions in the U.S. |
(a) | engage or prepare to engage with the Restricted Business; or |
For purposes of this Section 12:
The term "solicit" and related terms such as "soliciting" or "solicitation" mean to knowingly engage in acts or communications, in person or through others, that are intended or can
1 | Within the state of Louisiana, the Restricted Territory shall include the following parishes: Caddo, Bossier, Webster, Bienville, Lincoln, Jackson, Union, Morehouse, West Xxxxxxx, East Carroll, Madison, Richland, Franklin, Tensas, Quachita, Winn, Caldwell, Red River, Desoto, Sabine, Natchitoches, Grant, LaSalle, Avoyelles, Beauregard, Allen, Xxxxxxxxxx, St Landry, Lafayette, Point Coupee, East Baton Rouge, West Baton Rouge, Iberville, Assumption, St. Xxxxxx, St. Xxxx, Xxxxxxxxx, Xxxx Xxxxx, Xxxxx, Acadia, Vermillion, Xxxxxxx, Iberia, Terrebonne, Lafourche, Ascension, St Xxxx, St Xxxxx, St Charles, Xxxxxxxxx, St Tammany, Orleans, St Xxxxxxx, Plaquemines, and Tangipahoa. |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 13 |
reasonably be expected to induce or encourage a particular responsive action (such as buying a good or service), regardless of which party first initiates the contact or communication or whether the communication is in response to an inquiry or not. Provided, the provisions of this Section 12 shall be limited to those situations where Employee is: (a) providing services that are the same as or similar to those services Employee provided to WCI; (b) supervising or managing individuals performing such services; and/or (c) providing such other duties and services the performance of which would result in the use or disclosure of Confidential Information. Provided, further, that Employee may own, directly or indirectly, solely as an investment, securities of any business traded on any national securities exchange or quoted on any NASDAQ market, provided Employee is not a controlling person of, or a member of a group which controls, such business and further provided that Employee does not, in the aggregate, directly or indirectly, own two percent (2%) or more of any class of securities of such business. And further provided that nothing herein shall be construed to prohibit Employee's employment in a separately operated subsidiary or other business unit of a company that would not be a Restricted Business but for common ownership with a Restricted Business, so long as written assurances regarding the non-competitive nature of Employee's position that are satisfactory to the Company have been provided by Employee and the new employer in advance.
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 14 |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 15 |
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 16 |
[Signatures appear on the following page.]
| Employment Agreement: XXX PIO Initials: /s/ DP | Page 17 |
IN WITNESS WHEREOF, this Employment Agreement has been duly executed by or on behalf of the Parties hereto as of the date first above written.
EMPLOYEE /s/ Xxx Xxx |
Xxx Xxx |
Address: |
|
|
WASTE CONNECTIONS OF CANADA INC. | |
| |
| |
By: | /s/ Xxxxxx X. Xxxxxxxxxxxx |
| Xxxxxx X. Xxxxxxxxxxxx Xxxxx Executive Officer |
| Employment Agreement: Xxx Xxx Xxxxxxxx: /s/ DP | Page 18 |