DEFERRED COMPENSATION
PLAN
Effective January 1,
2005
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Page
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ARTICLE
I
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DEFINITIONS
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1
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ARTICLE
II
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SELECTION,
ENROLLMENT, ELIGIBILITY
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7
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2.1.
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Selection by
Committee
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7
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2.2.
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Enrollment and
Eligibility Requirements; Commencement of Participation
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7
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ARTICLE
III
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DEFERRAL
COMMITMENTS/COMPANY CONTRIBUTION AMOUNTS/ COMPANY RESTORATION
MATCHING AMOUNTS/COMPANY ADDITIONAL MATCHING
AMOUNTS/VESTING/CREDITING/TAXES
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8
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3.1.
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Minimum
Deferrals
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8
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3.2.
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Maximum
Deferral
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8
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3.3.
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Election to
Defer; Effect of Election Form
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9
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3.4.
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Withholding and
Crediting of Annual Deferral Amounts
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10
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3.5.
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Company
Contribution Amount
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10
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3.6.
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Company
Restoration Matching Amount
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11
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3.7.
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Company
Additional Matching Amount
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11
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3.8.
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Crediting of
Amounts after Benefit Distribution
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11
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3.9.
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Vesting
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11
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3.10.
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Crediting/Debiting of Account
Balances
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12
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3.11.
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FICA and Other
Taxes
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16
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ARTICLE
IV
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SCHEDULED
DISTRIBUTION; UNFORESEEABLE EMERGENCIES
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17
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4.1.
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Scheduled
Distribution
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17
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4.2.
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Postponing
Scheduled Distributions
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17
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4.3.
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Other Benefits
Take Precedence Over Scheduled Distributions
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17
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4.4.
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Unforeseeable
Emergencies
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18
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ARTICLE
V
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CHANGE IN
CONTROL BENEFIT
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18
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5.1.
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Change in
Control Benefit
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18
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5.2.
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Payment of
Change in Control Benefit
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19
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ARTICLE
VI
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RETIREMENT
BENEFIT
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19
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6.1.
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Retirement
Benefit
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19
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6.2.
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Payment of
Retirement Benefit
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19
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ARTICLE
VII
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TERMINATION
BENEFIT
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20
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7.1.
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Termination
Benefit
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20
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7.2.
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Payment of
Termination Benefit
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20
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ARTICLE
VIII
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DISABILITY
BENEFIT
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20
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8.1.
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Disability
Benefit
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20
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8.2.
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Payment of
Disability Benefit
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21
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ARTICLE
IX
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DEATH
BENEFIT
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21
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9.1.
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Death
Benefit
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21
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9.2.
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Payment of
Death Benefit
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21
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ARTICLE
X
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BENEFICIARY
DESIGNATION
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21
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10.1.
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Beneficiary
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21
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10.2.
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Beneficiary
Designation; Change; Spousal Consent
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21
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10.3.
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Acknowledgment
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21
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i
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Page
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10.4.
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No Beneficiary
Designation
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21
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10.5.
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Doubt as to
Beneficiary
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22
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10.6.
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Discharge of
Obligations
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22
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ARTICLE
XI
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LEAVE OF
ABSENCE
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22
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11.1.
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Paid Leave of
Absence
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22
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11.2.
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Unpaid Leave of
Absence
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22
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11.3.
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Leaves
Resulting in Separation from Service
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22
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ARTICLE
XII
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TERMINATION OF
PLAN, AMENDMENT OR MODIFICATION
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22
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12.1.
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Termination of
Plan
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22
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12.2.
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Amendment.
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23
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12.3.
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Plan
Agreement
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23
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12.4.
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Effect of
Payment
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23
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ARTICLE
XIII
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ADMINISTRATION
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23
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13.1.
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Committee
Duties
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23
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13.2.
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Administration
Upon Change In Control
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24
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13.3.
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Agents
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24
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13.4.
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Binding Effect
of Decisions
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24
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13.5.
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Indemnity of
Committee
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24
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13.6.
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Employer
Information
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24
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ARTICLE
XIV
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OTHER BENEFITS
AND AGREEMENTS
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25
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14.1.
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Coordination
with Other Benefits
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25
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ARTICLE
XV
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CLAIMS
PROCEDURES
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25
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15.1.
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Presentation of
Claim
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25
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15.2.
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Notification of
Decision
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25
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15.3.
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Review of a
Denied Claim
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26
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15.4.
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Decision on
Review
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26
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15.5.
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Legal
Action
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26
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ARTICLE
XVI
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TRUST
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27
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16.1.
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Establishment
of the Trust
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27
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16.2.
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Interrelationship of the Plan and the
Trust
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27
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16.3.
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Distributions
From the Trust
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27
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ARTICLE
XVII
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MISCELLANEOUS
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27
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17.1.
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Status of
Plan
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27
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17.2.
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Unsecured
General Creditor
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27
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17.3.
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Employer’s Liability
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27
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17.4.
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Nonassignability
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27
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17.5.
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Not a Contract
of Employment
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28
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17.6.
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Furnishing
Information
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28
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17.7.
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Terms
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28
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17.8.
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Captions
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28
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17.9.
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Governing
Law
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28
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17.10.
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Notice
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28
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17.11.
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Successors
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29
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17.12.
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Spouse’s
Interest
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29
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17.13.
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Validity
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29
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17.14.
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Incompetent
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29
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ii
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Page
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17.15.
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Court
Order
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29
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17.16.
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Distribution in
the Event of Income Inclusion Under Code §409A
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29
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17.17.
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Deduction
Limitation on Benefit Payments
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30
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17.18.
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Insurance
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30
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iii
DEFERRED COMPENSATION
PLAN
Effective January 1,
2005
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.
For the purposes
of this Plan, unless otherwise clearly apparent from the context,
the following phrases or terms shall have the following indicated
meanings:
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1.1.
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“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.
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1.2.
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“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).
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1.3.
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“Allied Plan” shall mean
the Allied Waste Industries, Inc. 2005 Executive Deferred
Compensation Plan.
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1.4.
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“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.
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1
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1.5.
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“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.
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1.6.
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“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.
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1.7.
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“Area President” shall
mean an Employee whose title as an Employee is area
president.
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1.8.
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“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.
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1.9.
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“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.
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1.10.
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“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.
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2
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1.11.
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“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.
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1.12.
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“Board” shall mean the
board of directors of the Company.
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1.13.
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“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.
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1.14.
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“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).
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1.15.
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“Change in Control”
shall mean any “change in control event” as defined in
accordance with Code §409A and related Treasury guidance and
Regulations.
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1.16.
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“Change in Control
Benefit” shall have the meaning set forth in
Article V.
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1.17.
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“Claimant” shall have
the meaning set forth in Section 15.1.
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1.18.
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“Code” shall mean the
Internal Revenue Code of 1986, as it may be amended from time to
time.
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1.19.
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“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.
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1.20.
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“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.
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1.21.
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“Company” shall mean
Republic Services, Inc., a Delaware corporation, and any successor
to all or substantially all of the Company’s assets or
business.
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1.22.
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“Company Additional Matching
Amount” shall mean, for any one Plan Year, the amount
determined in accordance with Section 3.7.
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1.23.
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“Company Contribution
Amount” shall mean, for any one Plan Year, the amount
determined in accordance with Section 3.5.
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3
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1.24.
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“Company Restoration Matching
Amount” shall mean, for any one Plan Year, the amount
determined in accordance with Section 3.6.
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1.25.
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“Death Benefit” shall
mean the benefit set forth in Article IX.
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1.26.
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“Director” shall mean
any member of the board of directors of any Employer who is not an
employee of any Employer.
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1.27.
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“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.
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1.28.
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“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.
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1.29.
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“Disability Benefit”
shall mean the benefit set forth in Article VIII.
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1.30.
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“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.
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1.31.
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“Employee” shall mean a
person who is an employee of any Employer.
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1.32.
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“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.
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1.33.
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“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.
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1.34.
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“ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as it may be
amended from time to time.
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1.35.
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“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.
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1.36.
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“General Manager” shall
mean an Employee whose title as an Employee is general
manager.
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1.37.
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“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.
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1.38.
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“Measurement Fund” shall
have the meaning set forth in Section 3.10(a).
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1.39.
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“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.
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1.40.
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“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.
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1.41.
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“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.
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1.42.
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“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.
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1.43.
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“Plan Year” shall mean a
period beginning on January 1 of each calendar year and continuing
through December 31 of such calendar year.
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1.44.
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“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
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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.
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1.45.
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“Retirement Benefit”
shall mean the benefit set forth in Article VI.
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1.46.
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“Scheduled Distribution”
shall mean the distribution set forth in
Section 4.1.
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1.47.
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“Separation from
Service” shall have the meaning set forth in Code
Section 409A(a)(2) and the regulations issued pursuant
thereto.
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1.48.
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“Stock” shall mean the
common stock of the Company.
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1.49.
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“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.
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1.50.
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“Termination Benefit”
shall mean the benefit set forth in Article VII.
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1.51.
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“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.
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1.52.
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“Trust” shall mean one
or more trusts established by the Company in accordance with
Article XVI.
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1.53.
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“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.
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1.54.
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“Vice President” shall
mean an Employee whose title as an Employee is vice
president.
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1.55.
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“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).
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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.
7
ARTICLE III
DEFERRAL COMMITMENTS/COMPANY CONTRIBUTION
AMOUNTS/
COMPANY RESTORATION MATCHING AMOUNTS/COMPANY ADDITIONAL
MATCHING
AMOUNTS/VESTING/CREDITING/TAXES
(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:
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Deferral
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Minimum Amount
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$5,000 aggregate
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Commissions and/or LTIP Amounts
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$1,000
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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.
(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:
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Maximum
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Deferral
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Percentage
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80%
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100%
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100%
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100%
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(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.
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(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).
(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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