AMERICAN ECOLOGY CORPORATION 2009 Executive Management Incentive Bonus Plan

Purpose of the Plan

Eligibility

A listing of employees approved by the Board of Directors (“Participants”) with their respective Initial Base Percentage (“IBP”) and Excess Percentage (“EP”) shall be maintained and administered by the Chief Financial Officer (“CFO”) under the direction of the Plan Administrator and is attached as Exhibit A . Participation in the Plan supersedes any prior agreements relating to the subject matter hereof, either written or verbal.

Except in the event of the Participant’s death, to be eligible for the maximum incentive award (a “Bonus Award”) under the Plan, a Participant must have been employed on a full-time basis by the Company for the entire 12 months of 2009 (the “Performance Period”) and must be employed on the last day of the Performance Period and at the date of such payment. Plan Participants whose employment with the Company began during the Performance Period may be eligible for a Bonus Award on a pro rata basis. Plan Participants whose employment with the Company has been terminated, for any reason whatsoever (except for death), prior to the payment of any Bonus Award, shall not be eligible to receive any payment hereunder.

Participant Groups

Chief Executive Officer (“CEO) - Fifty percent (50%) of the Bonus Award shall be based on the Company achieving operating income objectives, taking into account the cost of such Bonus Award. Up to an additional fifty percent (50%) shall be awarded, with the approval of the Board of Directors, for achieving annual priorities, updating and implementing Company initiatives and out year strategic plans, and implementing processes to ensure tracking and achievement of Board-adopted objectives.

Corporate Officers - This category includes the President and Chief Operating Officer and the four Corporate Vice Presidents and their Bonus Awards shall be based on the following criteria:

President and Chief Operating Officer (“COO”) - Fifty percent (50%) of the Bonus Award shall be based on the Company achieving operating income objectives, taking into account the cost of such Bonus Award. Up to an additional fifty percent (50%) shall be awarded, at the discretion of the CEO, for management of site efforts to achieve annual priorities, management of Company resources and completion of approved capital projects within budget and on schedule, effective management of health and safety programs, transportation arrangements, teamwork, development of out year plans for operating facility permit expansions and investments in operating facility plant and equipment, driving the overall sales and marketing effort to meet established territory targets, protecting existing business, team work, investor relations, business development, market development planning for out year growth and other evaluative factors.

Vice President and Chief Financial Officer (“CFO”). Fifty percent (50%) of the Bonus Awards shall be based on the Company achieving operating income objectives, taking into account the cost of such Bonus Awards. Up to an additional fifty percent (50%) shall be awarded, at the discretion of the CEO, for compliance with federal securities regulations including financial reporting requirements and compliance and internal control requirements, investor relations, business development and financing initiatives, development of out year capital structure and finance plans, team work, and other evaluative factors.

Vice President of Operations. Fifty percent (50%) of the Bonus Award shall be based on the Company achieving operating income objectives, taking into account the cost of such Bonus Awards. Up to an additional fifty percent (50%) shall be awarded, at the discretion of the President and COO for management of site efforts to achieve annual priorities, management of Company resources and completion of approved capital projects within budget and on schedule, effective management of health and safety programs, transportations arrangements, teamwork, and development of out year plans for operating facility permit expansions and investments in operating facility plant and equipment.

Corporate Officer - Vice President of Sales and Marketing - Fifty percent (50%) of the Bonus Award shall be based on the Company achieving operating income objectives, taking into account the cost of such Bonus Award. Up to an additional fifty percent (50%) shall be awarded, at the discretion of the President and COO, for driving the overall sales and marketing effort to meet established territory targets, protecting existing business, team work, business development assessment, market development planning for out year growth and other evaluative factors.

Operating Facility Management - This category includes three operating facility General Managers. Twenty-five percent (25%) of the Bonus Awards shall be based upon achievement of Company operating income objectives, taking into account the cost of such bonuses and twenty-five percent (25%) shall be based on Site operating income. Up to an additional fifty percent (50%) shall be awarded, at the discretion of the President and COO, based on achieving established annual priorities, regulatory comp