FORM OF
RESTRICTED STOCK AGREEMENT
ALLIED WASTE INDUSTRIES,
INC.
RESTRICTED STOCK AGREEMENT
(Under the 2006 Incentive Stock Plan)
THIS
RESTRICTED STOCK AGREEMENT (“Agreement”), is dated
, 200___ (the “Grant Date”), between ALLIED WASTE
INDUSTRIES, INC., a Delaware corporation (the
“Company”), and
(the “Grantee”):
The Company has
adopted the Allied Waste Industries, Inc. 2006 Incentive Stock
Plan, as such plan may subsequently be modified, amended, or
supplemented (the “Plan”), all of the terms and
provisions of which are incorporated herein by reference and made a
part of this Agreement. All capitalized terms used but not defined
in this Agreement have the meanings given to them in the
Plan.
The Management
Development/Compensation Committee of the Board of Directors (the
“Committee”) has determined that it is in the best
interests of the Company and its stockholders to grant to the
Grantee the Restricted Stock provided for herein as an inducement
for Grantee to [continue to] serve as [an employee of][a consultant
to] the Company and to provide Grantee with a proprietary interest
in the future of the Company.
NOW,
THEREFORE , in consideration of the mutual covenants
hereinafter set forth, the parties hereto agree as
follows:
1. Grant
of Restricted Stock . Subject in all respects to the terms,
conditions, and provisions of this Agreement and the Plan, the
Company hereby grants to Grantee
shares of Restricted Stock (the “Shares”).
(a)
Vesting Dates . The Shares shall vest according to the
following schedule:
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Number of
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Vesting Date
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Shares Vested
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The remaining
Shares shall vest upon the attainment of certain performance goals,
as provided in Schedule A attached to this
Agreement.
(b)
Acceleration of Vesting Upon Change in Control .
Notwithstanding Section 2(a) and except as otherwise
provided in the Grantee’s written employment agreement
or
other written
agreement with the Company or any policy of the Company, if any,
upon the occurrence of a Change in Control of the Company any
unvested Shares shall become fully and immediately vested
immediately prior to the consummation of the Change in
Control.
(c)
Issuance of Share Certificates . On or within a reasonable
time after the Grant Date, the Company shall issue in the name of
Grantee one or more certificate(s) for the Shares, which
certificate(s) shall be held in escrow by the Company pending
vesting of such Shares. The certificate(s) shall be stamped or
otherwise imprinted with a legend in such form as the Company or
its counsel may require with respect to any applicable restrictions
on the sale or transfer of the Shares, and the stock transfer
records of the Company will reflect stop-transfer instructions with
respect to such Shares. Within a reasonable time following the
vesting of Shares, the Company will re-issue one or more
certificate(s) for such Shares without the restrictive stock legend
and shall deliver such certificate(s) to the Grantee.
3. Effect
of Termination of Service with the Company . Except as
otherwise provided in the Grantee’s written employment
agreement or another written agreement with the Company or any
policy of the Company, if any, [and except as provided in the
following sentence,] if the Grantee’s Service with the
Company terminates due to any reason or for no reason, any Shares
that are not vested as of the commencement of business on the date
of such termination shall immediately be forfeited.
[Notwithstanding the foregoing, if the Grantee’s Service with
the Company is terminated as the result of the Grantee’s
Disability or death, any unvested Shares shall continue to vest for
a period of three years after such termination, on which date they
shall expire.]
4.
Transferability . The Shares granted pursuant to this
Agreement (a) may not be transferred for value, and
(b) are not transferable or assignable by the Grantee except
(i) by will or the laws of descent and distribution,
(ii) pursuant to a Qualified Domestic Relations Order, or
(iii) pursuant to Section 16(b) of the Plan.
5. Tax
Withholding; Other Deductions .
(a)
General . The Company’s obligation to deliver Shares
under this Agreement shall be subject to the Grantee’s
satisfaction of all applicable federal, state, and local income tax
withholding requirements. Grantee agrees to make appropriate
arrangements with the Company for the satisfaction of any
applicable federal, state, or local income tax withholding or
similar requirements, including the payment to the Company at the
time of vesting of any Shares of all such taxes and the
satisfaction of all such requirements. If tax withholdings are to
be transmitted to the Company and are not timely received by the
Company in order to satisfy its withholding obligation, the Company
may withhold a portion of the Shares that vest on the applicable
Vesting Date, sell such Shares, and use the proceeds from such
Shares to satisfy the Company’s withholding
obligations.
(b)
Shares to Pay for Withholding . The Committee may, in its
discretion and in accordance with the provisions of this
Section 5(b) and such supplemental rules as it may from
time to time adopt (including any applicable safe-harbor provisions
of Rule 16b-3 under the Exchange Act), provide the Grantee
with the right to use shares of Common Stock in satisfaction of all
or part of the federal, state, and local income tax liabilities
incurred by the Grantee in
2
connection with
the vesting of Shares (“Taxes”). Such right may be
provided to the Grantee in either or both of the following
formats:
(i)
Stock Withholding . The Grantee may be provided with the
election to have the Company withhold, from the Shares that vest on
a given Vesting Date, a portion of those Shares with an aggregate
Fair Market Value equal to the percentage of the applicable Taxes
(not to exceed 100 percent of such Taxes), as designated by the
Grantee.
(ii) S
tock Delivery . The Committee may, in its discretion,
provide the Grantee with the election to deliver to the Company, on
the Vesting Date for any Share, one or more shares of Common Stock
previously acquired by the Grantee (other than pursuant to the
transaction triggering the Taxes) with an aggregate Fair Market
Value equal to the percentage of the Taxes incurred in connection
with such vesting of Shares (not to exceed 100 percent of such
Taxes), as designated by the Grantee.
6. Tender
Offer or Merger; Adjustment of Shares . Notwithstanding
anything contained herein to the contrary:
(a) The
Committee, in its discretion (i) may accelerate vesting of all
or any portion of the Shares so that
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