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REPUBLIC SERVICES, INC. DEFERRED COMPENSATION PLAN

Executive Compensation Plan Agreement

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REPUBLIC SERVICES, INC.

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Title: REPUBLIC SERVICES, INC. DEFERRED COMPENSATION PLAN
Governing Law: Arizona     Date: 3/2/2009
Industry: Waste Management Services     Sector: Services

REPUBLIC SERVICES, INC. DEFERRED COMPENSATION PLAN, Parties: republic services  inc.
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Exhibit 10.16

REPUBLIC SERVICES, INC.

DEFERRED COMPENSATION PLAN

Effective January 1, 2005

 


 

TABLE OF CONTENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page

 

ARTICLE I

 

DEFINITIONS

 

 

1

 

ARTICLE II

 

SELECTION, ENROLLMENT, ELIGIBILITY

 

 

7

 

 

 

 

2.1.

 

 

Selection by Committee

 

 

7

 

 

 

 

2.2.

 

 

Enrollment and Eligibility Requirements; Commencement of Participation

 

 

7

 

ARTICLE III

 

DEFERRAL COMMITMENTS/COMPANY CONTRIBUTION AMOUNTS/ COMPANY RESTORATION
MATCHING AMOUNTS/COMPANY ADDITIONAL MATCHING AMOUNTS/VESTING/CREDITING/TAXES

 

 

8

 

 

 

 

3.1.

 

 

Minimum Deferrals

 

 

8

 

 

 

 

3.2.

 

 

Maximum Deferral

 

 

8

 

 

 

 

3.3.

 

 

Election to Defer; Effect of Election Form

 

 

9

 

 

 

 

3.4.

 

 

Withholding and Crediting of Annual Deferral Amounts

 

 

10

 

 

 

 

3.5.

 

 

Company Contribution Amount

 

 

10

 

 

 

 

3.6.

 

 

Company Restoration Matching Amount

 

 

11

 

 

 

 

3.7.

 

 

Company Additional Matching Amount

 

 

11

 

 

 

 

3.8.

 

 

Crediting of Amounts after Benefit Distribution

 

 

11

 

 

 

 

3.9.

 

 

Vesting

 

 

11

 

 

 

 

3.10.

 

 

Crediting/Debiting of Account Balances

 

 

12

 

 

 

 

3.11.

 

 

FICA and Other Taxes

 

 

16

 

ARTICLE IV

 

SCHEDULED DISTRIBUTION; UNFORESEEABLE EMERGENCIES

 

 

17

 

 

 

 

4.1.

 

 

Scheduled Distribution

 

 

17

 

 

 

 

4.2.

 

 

Postponing Scheduled Distributions

 

 

17

 

 

 

 

4.3.

 

 

Other Benefits Take Precedence Over Scheduled Distributions

 

 

17

 

 

 

 

4.4.

 

 

Unforeseeable Emergencies

 

 

18

 

ARTICLE V

 

CHANGE IN CONTROL BENEFIT

 

 

18

 

 

 

 

5.1.

 

 

Change in Control Benefit

 

 

18

 

 

 

 

5.2.

 

 

Payment of Change in Control Benefit

 

 

19

 

ARTICLE VI

 

RETIREMENT BENEFIT

 

 

19

 

 

 

 

6.1.

 

 

Retirement Benefit

 

 

19

 

 

 

 

6.2.

 

 

Payment of Retirement Benefit

 

 

19

 

ARTICLE VII

 

TERMINATION BENEFIT

 

 

20

 

 

 

 

7.1.

 

 

Termination Benefit

 

 

20

 

 

 

 

7.2.

 

 

Payment of Termination Benefit

 

 

20

 

ARTICLE VIII

 

DISABILITY BENEFIT

 

 

20

 

 

 

 

8.1.

 

 

Disability Benefit

 

 

20

 

 

 

 

8.2.

 

 

Payment of Disability Benefit

 

 

21

 

ARTICLE IX

 

DEATH BENEFIT

 

 

21

 

 

 

 

9.1.

 

 

Death Benefit

 

 

21

 

 

 

 

9.2.

 

 

Payment of Death Benefit

 

 

21

 

ARTICLE X

 

BENEFICIARY DESIGNATION

 

 

21

 

 

 

 

10.1.

 

 

Beneficiary

 

 

21

 

 

 

 

10.2.

 

 

Beneficiary Designation; Change; Spousal Consent

 

 

21

 

 

 

 

10.3.

 

 

Acknowledgment

 

 

21

 

i


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page

 

 

 

 

10.4.

 

 

No Beneficiary Designation

 

 

21

 

 

 

 

10.5.

 

 

Doubt as to Beneficiary

 

 

22

 

 

 

 

10.6.

 

 

Discharge of Obligations

 

 

22

 

ARTICLE XI

 

LEAVE OF ABSENCE

 

 

22

 

 

 

 

11.1.

 

 

Paid Leave of Absence

 

 

22

 

 

 

 

11.2.

 

 

Unpaid Leave of Absence

 

 

22

 

 

 

 

11.3.

 

 

Leaves Resulting in Separation from Service

 

 

22

 

ARTICLE XII

 

TERMINATION OF PLAN, AMENDMENT OR MODIFICATION

 

 

22

 

 

 

 

12.1.

 

 

Termination of Plan

 

 

22

 

 

 

 

12.2.

 

 

Amendment.

 

 

23

 

 

 

 

12.3.

 

 

Plan Agreement

 

 

23

 

 

 

 

12.4.

 

 

Effect of Payment

 

 

23

 

ARTICLE XIII

 

ADMINISTRATION

 

 

23

 

 

 

 

13.1.

 

 

Committee Duties

 

 

23

 

 

 

 

13.2.

 

 

Administration Upon Change In Control

 

 

24

 

 

 

 

13.3.

 

 

Agents

 

 

24

 

 

 

 

13.4.

 

 

Binding Effect of Decisions

 

 

24

 

 

 

 

13.5.

 

 

Indemnity of Committee

 

 

24

 

 

 

 

13.6.

 

 

Employer Information

 

 

24

 

ARTICLE XIV

 

OTHER BENEFITS AND AGREEMENTS

 

 

25

 

 

 

 

14.1.

 

 

Coordination with Other Benefits

 

 

25

 

ARTICLE XV

 

CLAIMS PROCEDURES

 

 

25

 

 

 

 

15.1.

 

 

Presentation of Claim

 

 

25

 

 

 

 

15.2.

 

 

Notification of Decision

 

 

25

 

 

 

 

15.3.

 

 

Review of a Denied Claim

 

 

26

 

 

 

 

15.4.

 

 

Decision on Review

 

 

26

 

 

 

 

15.5.

 

 

Legal Action

 

 

26

 

ARTICLE XVI

 

TRUST

 

 

27

 

 

 

 

16.1.

 

 

Establishment of the Trust

 

 

27

 

 

 

 

16.2.

 

 

Interrelationship of the Plan and the Trust

 

 

27

 

 

 

 

16.3.

 

 

Distributions From the Trust

 

 

27

 

ARTICLE XVII

 

MISCELLANEOUS

 

 

27

 

 

 

 

17.1.

 

 

Status of Plan

 

 

27

 

 

 

 

17.2.

 

 

Unsecured General Creditor

 

 

27

 

 

 

 

17.3.

 

 

Employer’s Liability

 

 

27

 

 

 

 

17.4.

 

 

Nonassignability

 

 

27

 

 

 

 

17.5.

 

 

Not a Contract of Employment

 

 

28

 

 

 

 

17.6.

 

 

Furnishing Information

 

 

28

 

 

 

 

17.7.

 

 

Terms

 

 

28

 

 

 

 

17.8.

 

 

Captions

 

 

28

 

 

 

 

17.9.

 

 

Governing Law

 

 

28

 

 

 

 

17.10.

 

 

Notice

 

 

28

 

 

 

 

17.11.

 

 

Successors

 

 

29

 

 

 

 

17.12.

 

 

Spouse’s Interest

 

 

29

 

 

 

 

17.13.

 

 

Validity

 

 

29

 

 

 

 

17.14.

 

 

Incompetent

 

 

29

 

ii


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page

 

 

 

 

17.15.

 

 

Court Order

 

 

29

 

 

 

 

17.16.

 

 

Distribution in the Event of Income Inclusion Under Code §409A

 

 

29

 

 

 

 

17.17.

 

 

Deduction Limitation on Benefit Payments

 

 

30

 

 

 

 

17.18.

 

 

Insurance

 

 

30

 

iii


 

DEFERRED COMPENSATION PLAN

Effective January 1, 2005

Purpose

     The purpose of this Plan is to provide specified benefits to Directors and a select group of management or highly compensated Employees who contribute materially to the continued growth, development and future business success of Republic Services, Inc., a Delaware corporation, and its subsidiaries, if any, that sponsor this Plan. This Plan shall be unfunded for tax purposes and for purposes of Title I of ERISA.

     This Plan is intended to comply with all applicable law, including Code §409A and related Treasury guidance and Regulations, and shall be operated and interpreted in accordance with this intention. Consistent with the foregoing, and in order to transition the Plan to the requirements of Code §409A and related Treasury guidance and Regulations, the Committee has made available, or will make available, to Participants certain transition relief described more fully in Appendix A of this Plan, as permitted by Code §409A and related Treasury guidance and Regulations.

ARTICLE I
DEFINITIONS

     For the purposes of this Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the following indicated meanings:

1.1.

 

“Account Balance” shall mean, with respect to a Participant, an entry on the records of the Employer equal to the sum of the Participant’s Annual Accounts. The Account Balance shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan.

 

1.2.

 

“Affiliate” shall mean any entity, other than the Company, which is a member of a controlled group of companies or under common control with the Company within the meaning of Code Sections 414(b) or (c).

 

1.3.

 

“Allied Plan” shall mean the Allied Waste Industries, Inc. 2005 Executive Deferred Compensation Plan.

 

1.4.

 

“Annual Account” shall mean, with respect to a Participant, an entry on the records of the Employer equal to the following amount: (i) the sum of the Participant’s Annual Deferral Amount, Company Contribution Amount, Company Restoration Matching Amount, and Company Additional Matching Amount for any one Plan Year, plus (ii) amounts credited or debited to such amounts pursuant to this Plan, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the Annual Account for such Plan Year. The Annual Account shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan.

1


 

1.5.

 

“Annual Deferral Amount” shall mean that portion of a Participant’s Base Salary, Bonus, Commissions, Director Fees and LTIP Amounts that a Participant defers in accordance with Article III for any one Plan Year, without regard to whether such amounts are withheld and credited during such Plan Year. In the event of a Participant’s Disability or death prior to the end of a Plan Year, such year’s Annual Deferral Amount shall be the actual amount withheld prior to such event.

 

1.6.

 

“Annual Installment Method” shall be an annual installment payment over the number of years selected by the Participant in accordance with this Plan, calculated as follows: (i) for the first annual installment, the vested portion of each Annual Account shall be calculated as of the close of business on, or if the Participant’s Benefit Distribution Date is not a business day the first business day following, the Participant’s Benefit Distribution Date, , and (ii) for remaining annual installments, the vested portion of each applicable Annual Account shall be calculated on every anniversary of such calculation date, as applicable. Each annual installment shall be calculated by multiplying this balance by a fraction, the numerator of which is one and the denominator of which is the remaining number of annual payments due to the Participant. By way of example, if the Participant elects a ten (10) year Annual Installment Method as the form of Retirement Benefit for an Annual Account, the first payment shall be 1/10 of the vested balance of such Annual Account, calculated as described in this definition. The following year, the payment shall be 1/9 of the vested balance of such Annual Account, calculated as described in this definition.

 

1.7.

 

“Area President” shall mean an Employee whose title as an Employee is area president.

 

1.8.

 

“Base Salary” shall mean the annual cash compensation relating to services performed during any calendar year, excluding distributions from nonqualified deferred compensation plans, bonuses, commissions, overtime, fringe benefits, stock options, relocation expenses, incentive payments, non-monetary awards, director fees and other fees, and automobile and other allowances paid to a Participant for employment services rendered (whether or not such allowances are included in the Employee’s gross income). Base Salary shall be calculated before reduction for compensation voluntarily deferred or contributed by the Participant pursuant to all qualified or nonqualified plans of any Employer and shall be calculated to include amounts not otherwise included in the Participant’s gross income under Code §§125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by any Employer; provided, however, that all such amounts will be included in compensation only to the extent that had there been no such plan, the amount would have been payable in cash to the Employee.

 

1.9.

 

“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated in accordance with Article 10, that are entitled to receive benefits under this Plan upon the death of a Participant.

 

1.10.

 

“Beneficiary Designation Form” shall mean the form established from time to time by the Committee that a Participant completes, signs and returns to the Committee to designate one or more Beneficiaries.

2


 

1.11.

 

“Benefit Distribution Date” shall mean a date or event that triggers distribution of a Participant’s vested benefits as provided in Articles V, VI, VII, VIII, and IX.

 

1.12.

 

“Board” shall mean the board of directors of the Company.

 

1.13.

 

“Bonus” shall mean any compensation, in addition to Base Salary, Commissions and LTIP Amounts, earned by a Participant for services rendered during a Plan Year, under any Employer’s annual bonus and cash incentive plans.

 

1.14.

 

“Cause” shall mean with respect to each Participant (i) if the Participant has an employment agreement with an Employer containing a definition of “cause”, the definition in the Participant’s employment agreement; and (ii) if the Participant does not have an employment agreement with an Employer containing a definition of “cause”, (a) Participant is convicted of, or pleads guilty (or nolo contendere ), to a felony or crime involving moral turpitude, (b) the Company determines that the Participant knowing breached any term of the Participant’s employment agreement with an Employer, (c) the Company determines that the Participant knowingly violated any of the Company’s policies, rules or guidelines, or (d) the Company determines that the Participant willfully engaged in conduct, or willfully failed to perform assigned duties, the result of which exposes the Company to serious or potential injury (financial or otherwise).

 

1.15.

 

“Change in Control” shall mean any “change in control event” as defined in accordance with Code §409A and related Treasury guidance and Regulations.

 

1.16.

 

“Change in Control Benefit” shall have the meaning set forth in Article V.

 

1.17.

 

“Claimant” shall have the meaning set forth in Section 15.1.

 

1.18.

 

“Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time.

 

1.19.

 

“Commissions” shall mean the cash commissions earned by a Participant from any Employer for services rendered during a Plan Year, excluding Bonus, LTIP Amounts or other additional incentives or awards earned by the Participant.

 

1.20.

 

“Committee” shall mean the Company’s Benefits Committee as constituted from time to time, and when there are no members of the Benefits Committee, the Board’s Compensation Committee.

 

1.21.

 

“Company” shall mean Republic Services, Inc., a Delaware corporation, and any successor to all or substantially all of the Company’s assets or business.

 

1.22.

 

“Company Additional Matching Amount” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.7.

 

1.23.

 

“Company Contribution Amount” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.5.

3


 

1.24.

 

“Company Restoration Matching Amount” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.6.

 

1.25.

 

“Death Benefit” shall mean the benefit set forth in Article IX.

 

1.26.

 

“Director” shall mean any member of the board of directors of any Employer who is not an employee of any Employer.

 

1.27.

 

“Director Fees” shall mean the annual fees earned by a Director from any Employer, including retainer fees and meetings fees, as compensation for serving on the board of directors.

 

1.28.

 

“Disability” or “Disabled” shall mean that a Participant is (i) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident or health plan covering employees of the Participant’s Employer. For purposes of this Plan, a Participant shall be deemed to have satisfied either clause (i) or (ii) of this Section 1.25 and be Disabled if determined to be totally disabled by the Social Security Administration, or if determined to be disabled in accordance with the applicable disability insurance program of such Participant’s Employer, provided that the definition of “disability” applied under such disability insurance program complies with the requirements in the preceding sentence.

 

1.29.

 

“Disability Benefit” shall mean the benefit set forth in Article VIII.

 

1.30.

 

“Election Form” shall mean the form, which may be in electronic format, established from time to time by the Committee that a Participant completes, signs and returns to the Committee to make an election under the Plan.

 

1.31.

 

“Employee” shall mean a person who is an employee of any Employer.

 

1.32.

 

“Employee Director” shall mean an Employee whose title as an Employee is that of a director level. For this purpose, it is not intended to indicate a member of the board of directors of any Employer.

 

1.33.

 

“Employer(s)” shall mean the Company and/or any of its subsidiaries (now in existence or hereafter formed or acquired) that have been selected by the Board to participate in the Plan and have adopted the Plan as a sponsor.

 

1.34.

 

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time.

4


 

1.35.

 

“401(k) Plan” shall mean, with respect to an Employer, a plan qualified under Code §401(a) that contains a cash or deferred arrangement described in Code §401(k), adopted by the Employer, as it may be amended from time to time, or any successor thereto.

 

1.36.

 

“General Manager” shall mean an Employee whose title as an Employee is general manager.

 

1.37.

 

“LTIP Amounts” shall mean any portion of the compensation attributable to a Plan Year that is earned by a Participant as an Employee under any Employer’s long-term incentive plan or any other long-term incentive arrangement designated by the Committee.

 

1.38.

 

“Measurement Fund” shall have the meaning set forth in Section 3.10(a).

 

1.39.

 

“Participant” shall mean any Employee or Director (i) who is selected to participate in the Plan, (ii) who submits an executed Plan Agreement, Election Form and Beneficiary Designation Form, which is accepted by the Committee, and (iii) whose Plan Agreement has not terminated.

 

1.40.

 

“Plan” shall mean the Republic Services Deferred Compensation Plan, which shall be evidenced by this instrument and by each Plan Agreement, as they may be amended from time to time.

 

1.41.

 

“Plan Agreement” shall mean a written agreement, as may be amended from time to time, which is entered into by and between an Employer and a Participant. Each Plan Agreement executed by a Participant and the Participant’s Employer shall provide for the entire benefit to which such Participant is entitled under the Plan; should there be more than one Plan Agreement, the Plan Agreement bearing the latest date of acceptance by the Employer shall supersede all previous Plan Agreements in their entirety and shall govern such entitlement. The terms of any Plan Agreement may be different for any Participant, and any Plan Agreement may provide additional benefits not set forth in the Plan or limit the benefits otherwise provided under the Plan; provided, however, that any such additional benefits or benefit limitations must be agreed to by both the Employer and the Participant.

 

1.42.

 

“Plan Compensation” for any Plan Year shall mean the sum of a Participant’s (i) Base Salary, Commissions, Bonus, LTIP Amounts, each of which is included in the Participant’s W-2 compensation for the applicable year, (ii) elective deferrals to the 401(k) Plan, (iii) Annual Deferral Amount, and (iv) deferrals excluded from taxable wages under Code §125.

 

1.43.

 

“Plan Year” shall mean a period beginning on January 1 of each calendar year and continuing through December 31 of such calendar year.

 

1.44.

 

“Retirement”, “Retire(s)” or “Retired” shall mean, with respect to an Employee, the definition of Retirement set forth with respect to this Plan in the Participant’s initial Plan Agreement (provided however that Retirement is defined as Separation from Service after a specified date), and if none, shall mean Separation from Service for any reason other than death or Disability, as determined in accordance with Code §409A and related

5


 

 

 

Treasury guidance and Regulations, on or after the earlier of the attainment of (a) age sixty (60) plus five (5) Years of Service, (b) age fifty-six (56) plus ten (10) Years of Service, or (c) fifty-five plus twenty (20) Years of Service; and shall mean with respect to a Director who is not an Employee, Separation from Service as a Director. If a Participant is both an Employee and a Director and does not have benefits under this Plan (or a plan required to be aggregated with this Plan) for services both as an Employee and a Director, the services provided as a Director are not taken into consideration in determining if the Participant has a Separation from Service as an Employee hereunder and the services as an Employee are not taken into consideration for purposes of determining if the Director has as Separation of Service as a Director.

 

1.45.

 

“Retirement Benefit” shall mean the benefit set forth in Article VI.

 

1.46.

 

“Scheduled Distribution” shall mean the distribution set forth in Section 4.1.

 

1.47.

 

“Separation from Service” shall have the meaning set forth in Code Section 409A(a)(2) and the regulations issued pursuant thereto.

 

1.48.

 

“Stock” shall mean the common stock of the Company.

 

1.49.

 

“Terminate the Plan”, “Termination of the Plan” shall mean a determination by an Employer’s board of directors that (i) all of its Participants shall no longer be eligible to participate in the Plan, (ii) no new deferral elections for such Participants shall be permitted, and (iii) such Participants shall no longer be eligible to be credited with any contributions under this Plan.

 

1.50.

 

“Termination Benefit” shall mean the benefit set forth in Article VII.

 

1.51.

 

“Termination of Employment” shall mean the Separation from Service, voluntarily or involuntarily, for any reason other than Retirement, Disability or death, as determined in accordance with Code §409A and related Treasury guidance and Regulations. If a Participant is both an Employee and a Director and does not have benefits under this Plan (or a plan required to be aggregated with this Plan) for services both as an Employee and a Director, the services provided as a Director are not taken into consideration in determining if the Participation has a Termination of Employment as an Employee hereunder and the services as an Employee are not taken into consideration for purposes of determining if the Director has as Termination of Employment as a Director.

 

1.52.

 

“Trust” shall mean one or more trusts established by the Company in accordance with Article XVI.

 

1.53.

 

“Unforeseeable Emergency” shall mean a severe financial hardship of the Participant resulting from (i) an illness or accident of the Participant, the Participant’s spouse, Beneficiary, or dependent (as defined in Code §152(a)), (ii) a loss of the Participant’s property due to casualty, or (iii) such other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined in the sole discretion of the Committee.

6


 

1.54.

 

“Vice President” shall mean an Employee whose title as an Employee is vice president.

 

1.55.

 

“Years of Service” shall mean the number of consecutive full years of employment with the Company or an Affiliate (including years of employment before the Employer became an Affiliate).

ARTICLE II
SELECTION, ENROLLMENT, ELIGIBILITY

Selection by Committee . Participation in the Plan shall be limited to Directors, Employees of an Employer at the level of Vice Presidents and above, Area Presidents, Employee Directors, General Managers and such others as may be included in a select group of management or highly compensated employees of an Employer, as may be selected by the Committee.

     2.1. Enrollment and Eligibility Requirements; Commencement of Participation .

          (a) As a condition to participation, each Director or selected Employee who is eligible to participate in the Plan effective as of the first day of a Plan Year shall complete, execute and return to the Committee a Plan Agreement, an Election Form and a Beneficiary Designation Form, prior to the first day of such Plan Year, or such other earlier deadline as may be established by the Committee in its sole discretion. In addition, the Committee shall establish from time to time such other enrollment requirements as it determines, in its sole discretion, are necessary.

          (b) A Director or selected Employee who first becomes eligible to participate in this Plan after the first day of a Plan Year must complete, execute and return to the Committee a Plan Agreement, an Election Form, and a Beneficiary Designation Form within thirty (30) days after he or she first becomes eligible to participate in the Plan, or within such other earlier deadline as may be established by the Committee, in its sole discretion, in order to participate for that Plan Year. In such event, such person’s participation in this Plan shall not commence earlier than the date determined by the Committee pursuant to Section 2.2(c) and such person shall not be permitted to defer under this Plan any portion of his or her Base Salary, Bonus, LTIP Amounts, Commissions and/or Director Fees that are paid with respect to services performed prior to his or her participation commencement date, except to the extent permissible under Code §409A and related Treasury guidance or Regulations.

          (c) Each Director or selected Employee who is eligible to participate in the Plan shall commence participation in the Plan on the date that the Committee determines, in its sole discretion, that the Director or Employee has met all enrollment requirements set forth in this Plan and required by the Committee, including returning all required documents to the Committee within the specified time period. Notwithstanding the foregoing, the Committee shall process such Participant’s deferral election as soon as administratively practicable after such deferral election is submitted to and accepted by the Committee.

          (d) If a Director or an Employee fails to meet all requirements contained in this Section 2.2 within the period required, that Director or Employee shall not be eligible to participate in the Plan during such Plan Year.

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ARTICLE III
DEFERRAL COMMITMENTS/COMPANY CONTRIBUTION AMOUNTS/
COMPANY RESTORATION MATCHING AMOUNTS/COMPANY ADDITIONAL MATCHING
AMOUNTS/VESTING/CREDITING/TAXES

     3.1. Minimum Deferrals .

          (a) Annual Deferral Amount . For each Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount, Base Salary, Bonus, Commissions, LTIP Amounts and/or Director Fees in the following minimum amounts for each deferral elected:

 

 

 

Deferral

 

Minimum Amount

Base Salary, Bonus,

 

$5,000 aggregate

Commissions and/or LTIP Amounts

 

 

Director Fees

 

$1,000

If the Committee determines, in its sole discretion, prior to the beginning of a Plan Year that a Participant has made an election for less than the stated minimum amounts, or if no election is made, the amount deferred shall be zero.

          (b) Short Plan Year . Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, the minimum Annual Deferral Amount shall be an amount equal to the minimum set forth above, multiplied by a fraction, the numerator of which is the number of complete months remaining in the Plan Year and the denominator of which is 12.

     3.2. Maximum Deferral.

          (a) Annual Deferral Amount . For each Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount, Base Salary, Bonus, Commissions, LTIP Amounts and/or Director Fees up to the following maximum percentages for each deferral elected:

 

 

 

 

 

Maximum

Deferral

 

Percentage

Base Salary/Commissions

 

 80%

Bonus

 

100%

LTIP Amounts

 

100%

Director Fees

 

100%

          (b) Short Plan Year . Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, the maximum Annual Deferral Amount shall be limited to the amount of compensation not yet earned by the Participant as of the date the Participant submits a Plan Agreement and Election Form to the Committee for acceptance, except to the extent permissible under Code §409A and related Treasury guidance or Regulations. For compensation that is earned based upon a specified performance period, the Participant’s deferral election will apply to the portion of such compensation that is equal to (i)

8


 

the total amount of compensation for the performance period, multiplied by (ii) a fraction, the numerator of which is the number of days remaining in the service period after the Participant’s deferral election is made, and the denominator of which is the total number of days in the performance period.

     3.3. Election to Defer; Effect of Election Form .

          (a) First Plan Year . In connection with a Participant’s commencement of participation in the Plan, the Participant shall make an irrevocable election to defer Base Salary, Bonus, Commissions, Director Fees and LTIP Amounts for the Plan Year in which the Participant commences participation in the Plan, along with such other elections as the Committee deems necessary or desirable under the Plan. For these elections to be valid, the Election Form must be completed and signed by the Participant, timely delivered to the Committee (in accordance with Section 2.2 above) and accepted by the Committee.

          (b) Subsequent Plan Years . A Participant’s election to defer Base Salary, Bonus, Commissions, Director Fees and LTIP Amounts shall remain in effect for subsequent Plan Years, unless and until the Participant either timely files a new Election Form to notify the Committee of the change (including ceasing deferrals) in the election to defer Base Salary, Bonus, Commissions, Director Fees and LTIP Amounts. All changes and elections shall be made by the Participant timely delivering a new Election Form, and any other forms as the Committee may deem necessary or desirable, to the Committee, in accordance with its rules and procedures, before the December 31st preceding the Plan Year in which such compensation is earned with respect to which the termination or modification applies, or before such other deadline established by the Committee in accordance with the requirements of Code §409A and related Treasury guidance or Regulations. For compensation which is earned over one or more consecutive fiscal years of an Employer that is not payable during the service period, the Committee may determine that a Participant may defer such compensation by making an election before the last day of the fiscal year preceding the first fiscal year in which the services are performed.

     Any deferral election(s) made in accordance with this Section 3.3(b) shall be irrevocable; provided, however, that if the Committee requires Participants to make a deferral election for “performance-based compensation” by the deadline(s) described above, it may, in its sole discretion, and in accordance with Code §409A and related Treasury guidance or Regulations, permit a Participant to subsequently change his or her deferral election for such compensation by submitting an Election Form to the Committee no later than the deadline established by the Committee pursuant to Section 3.3(c) below.

          (c) Performance-Based Compensation . Notwithstanding the foregoing, the Committee may, in its sole discretion, determine that an irrevocable deferral election pertaining to “performance-based compensation” based on services performed over a period of at least twelve (12) months, may be made by timely delivering an Election Form to the Committee, in accordance with its rules and procedures, no later than six (6) months before the end of the performance service period. “Performance-based compensation” shall be compensation, the payment or amount of which is contingent on pre-established organizational or individual performance criteria, which satisfies the requirements of Code §409A and related Treasury

9


 

guidance or Regulations. In order to be eligible to make a deferral election for performance-based compensation, a Participant must perform services continuously from a date no later than the date upon which the performance criteria for such compensation are established through the date upon which the Participant makes a deferral election for such compensation. In no event shall an election to defer performance-based compensation be permitted after such compensation has become both substantially certain to be paid and readily ascertainable and such election shall be void and not in effect with respect to compensation which is determined not to be “Performance-based compensation.”

          (d) Compensation Subject to Risk of Forfeiture . With respect to compensation (i) to which a Participant has a legally binding right to payment in a subsequent year, and (ii) that is subject to a forfeiture condition requiring the Participant’s continued services for a period of at least twelve (12) months from the date the Participant obtains the legally binding right, the Committee may, in its sole discretion, determine that an irrevocable deferral election for such compensation may be made by timely delivering an Election Form to the Committee in accordance with its rules and procedures, no later than the 30th day after the Participant obtains the legally binding right to the compensation, provided that the election is made at least twelve (12) months in advance of the earliest date at which the forfeiture condition could lapse.

          (e) Contingent Deferral Election. A Participant may elect to not receive all or part of the restricted stock award and instead be credited with the equivalent value of the restricted stock in the Republic Services Stock Unit Fund. To be effective, such an election must be made either (i) prior to the first day of the Plan year in which the restricted stock award is granted, or (ii) within 30 days after the restricted stock award is granted, provided that the election is made at least 12 months in advance of the earliest date on which the restricted stock award could vest (other than by reason of the Participant’s death, Disability or Change in Control).

     3.4. Withholding and Crediting of Annual Deferral Amounts . For each Plan Year, the Base Salary portion of the Annual Deferral Amount shall be withheld from each regularly scheduled Base Salary payroll in equal amounts, as adjusted from time to time for increases and decreases in Base Salary. The Bonus, Commissions, LTIP Amounts and/or Director Fees portion of the Annual Deferral Amount shall be withheld at the time the Bonus, Commissions, LTIP Amounts or Director Fees are or otherwise would be paid to the Participant, whether or not this occurs during the Plan Year itself. Annual Deferral Amounts shall be credited to the Participant’s Annual Account for such Plan Year at the time such amounts would otherwise have been paid to the Participant.

     3.5. Company Contribution Amount .

          (a) For each Plan Year, an Employer may be required to credit amounts to a Participant’s Annual Account in accordance with employment or other agreements entered into between the Participant and the Employer, which amounts shall be part of the Participant’s Company Contribution Amount for that Plan Year. Such amounts shall be credited to the Participant’s Annual Account for the applicable Plan Year on the date or dates prescribed by such agreements.

10


 

          (b) For each Plan Year, an Employer, in its sole discretion, may, but is not required to, credit any amount it desires to any Participant’s Annual Account under this Plan, which amount shall be part of the Participant’s Company Contribution Amount for that Plan Year. The amount so credited to a Participant may be smaller or larger than the amount credited to any other Participant, and the amount credited to any Participant for a Plan Year may be zero, even though one or more other Participants receive a Company Contribution Amount for that Plan Year. The Company Contribution Amount described in this Section 3.5(b), if any, shall be credited to the Participant’s Annual Account for the applicable Plan Year on a date or dates to be determined by the Committee, in its sole discretion.

     3.6. Company Restoration Matching Amount . A Participant’s Company Restoration Matching Amount for any Plan Year shall be an amount equal to the lesser of (i) two percent (2%) of the Participant’s Plan Compensation for such Plan Year in excess of the Code §401(a)(17) limits (which is $245,000 for 2009 and as adjusted thereafter), or (ii) fifty percent (50%) of the Participant’s Annual Deferral Amount for such year. The Participant’s Company Restoration Matching Amount, if any, shall be credited to the Participant’s Annual Account for the applicable Plan Year on a date or dates to be determined by the Committee, in it sole discretion. The Company Restoration Matching Amount shall be credited in Stock in the 2005 Plan Year and in cash in all future Plan Years.

     3.7. Company Additional Matching Amount.

     For Plan Years beginning on or after January 1, 2009, there will be no Company Additional Matching Amount.

     3.8. Crediting of Amounts after Benefit Distribution . Notwithstanding any provision in this Plan to the contrary, should the complete distribution (other than as a distribution pursuant to Section 4.4) of a Participant’s vested Account Balance (as determined pursuant to Section 3.9) occur prior to the date on which any portion of (i) the Annual Deferral Amount that a Participant has elected to defer in accordance with Section 3.3, (ii) the Company Contribution Amount, (iii) the Company Restoration Matching Amount, or (iv) the Company Additional Matching Amount, would otherwise be credited to the Participant’s Account Balance, such amounts shall be credited to the Participant’s Account Balance and distributed in accordance with the form and time of distribution that is applicable to the amount so credited (and to the extent the time of distribution has occurred, within 60 days of the date of such crediting).

     3.9. Vesting .

          (a) A Participant shall at all times be 100% vested in the portion of his or her Account Balance attributable to his or her deferrals of Base Salary, Bonus, Commissions, LTIP Amounts and Director Fees as adjusted for amounts credited or debited on such amounts (pursuant to Section 3.10).

          (b) A Participant shall be vested in the portion of his or her Account Balance attributable to any Company Contribution Amounts, adjusted for amounts credited or debited on such amounts (pursuant to Section 3.10), in accordance with the vesting schedule(s) set forth

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