ALLIED WASTE INDUSTRIES, INC. RESTRICTED STOCK UNITS AGREEMENT (UNDER 2006 INCENTIVE STOCK PLAN)
EXHIBIT 10.4
ALLIED WASTE INDUSTRIES, INC.
RESTRICTED STOCK UNITS AGREEMENT
(UNDER 2006 INCENTIVE STOCK PLAN)
(UNDER 2006 INCENTIVE STOCK PLAN)
THIS RESTRICTED STOCK UNITS AGREEMENT (“Agreement”) is dated [February ___, 2008] (the “Grant
Date”), between ALLIED WASTE INDUSTRIES, INC., a Delaware corporation (the “Company”), and
(the “Grantee”).
R E C I T A L S:
The Company has adopted the Allied Waste Industries, Inc. 2006 Incentive Stock Plan, as
previously amended and 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 Units provided for herein, pursuant to the Grantee’s election under
the terms of the 2007 [Senior] Management Incentive Plan, as an inducement for Grantee to [continue
to] serve as an employee of 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 Units. Subject in all respects to the terms, conditions, and
provisions of this Agreement and the Plan, the Company hereby grants to Grantee ___Restricted
Stock Units (the “RSUs”). Each RSU shall represent Grantee’s right to receive one share of the
Company’s Common Stock.
2. Vesting and Issuance of Shares. The RSUs are fully vested as of the Grant Date. The
“Issue Date” for each RSU shall be the earlier to occur of (a) [February ___, 2009] (b) the date of
the Grantee’s death, or (c) the date upon which a Change in Control occurs. For this purpose, the
term “Change in Control” is as defined in the Plan for purposes of Section 409A Awards. Within 90
days after the Issue Date, the Company shall issue to the Grantee one share of Common Stock with
respect to each RSU. The Secretary of the Company shall issue or cause to be issued to the Grantee
(or permitted transferee) a certificate or certificates for the number of shares of Common Stock
issuable on the Issue Date, less any applicable tax and other withholding amounts, unless
applicable taxes and other withholdings are satisfied by other means under Section 5. The
Company shall cause the certificate(s) to be issued in the name of the Grantee or permitted
transferee and delivered to the Grantee or permitted transferee within 90 days after the Issue Date
with respect to shares of Common Stock issued on such Issue Date; provided, however, that such
delivery shall be effected for all purposes when the Company’s
1
stock transfer agent shall have deposited such certificates in the United States mail,
addressed to the Grantee or permitted transferee. The Company, however, shall not be liable to the
Grantee or permitted transferee for damages relating to any delays in issuing the certificate(s) to
the Grantee or permitted transferee, any loss of the certificate(s), or any mistakes or errors in
the issuance of the certificate(s) or in the certificate(s) themselves.
3. Effect of Termination of Service with the Company. The termination of the Grantee’s
Service with the Company for any reason or for no reason shall not affect the Grantee’s right to
receive shares of the Company’s Common Stock on the Issue Date (if the termination occurs prior to
the Issue Date) or to retain such shares (if the termination occurs subsequent to the Issue Date).
4. Transferability. The RSUs 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.
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
on the Issue Date 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 of Common Stock that would otherwise be issued to the Grantee on the Issue 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 connection
with the receipt of shares of Common Stock on the Issue Date (“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 of Common Stock otherwise issuable on the Issue Date, a portion of those
shares of Common Stock 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) Stock Delivery. The Committee may, in its discretion, provide the Grantee with the
election to deliver to the Company, on the Issue Date, 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
2
incurred in connection with such issuance (not to exceed 100 percent of such Taxes), as
designated by the Grantee.
6. Rights as Stockholder. The Grantee shall not be entitled to any of the rights of a
stockholder with respect to the RSUs (including the right to vote any shares issuable with respect
to such RSUs) unless and until the certificate(s) for shares of Common Stock issuable upon the
Issue Date are issued.
7. No Employment or Service Contract. Nothing in this Agreement or in the Plan shall confer
upon the Grantee any right to continue in the Service of the Company (or any Parent or Subsidiary
employing or retaining the Grantee) for any period of time or to interfere with or otherwise
restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining
the Grantee) or the Grantee, which rights are hereby expressly reserved by each, to terminate the
Service of Grantee at any time for any reason whatsoever, with or without Cause.
8. Limitation on Liability of the Company.
(a) If the number of shares of Common Stock covered by this Agreement (individually, or in
combination with other Awards granted under the Plan) exceeds, as of the Grant Date, the number of
shares of the Company’s Common Stock that may be issued under the Plan without stockholder
approval, then this Agreement shall be void with respect to such excess shares unless the Company
obtains stockholder approval of an amendment to the Plan increasing the number of shares of Common
Stock issuable under the Plan prior to the Issue Date with respect to such excess shares.
(b) The inability of the Company to obtain approval from any regulatory body having authority
deemed by the Company to be necessary to the lawful issuance of any shares of Common Stock pursuant
to this Agreement shall relieve the Company of any liability with respect to the nonissuance of the
shares of Common Stock as to which such approval shall not have been obtained.
9. Compliance With Laws and Regulations; Securities Matters.
(a) The issuance of the shares of Common Stock pursuant to this Agreement shall be subject to
compliance by the Company and the Grantee with all applicable requirements of law relating thereto
and with all applicable regulations of any stock exchange or trading market on which the shares of
Common Stock may be listed at the time of such exercise and issuance. Notwithstanding any of the
other provisions of this Agreement or of the Plan, the Grantee agrees that the Company will not be
obligated to issue any of the shares of Common Stock pursuant to this Agreement if the issuance of
such shares of Common Stock would constitute a violation by the Grantee or by the Company of any
provision of any law or regulation of any governmental authority or national securities exchange or
trading market on which the Common Stock is then listed or traded. The Company, in its sole
discretion, may defer the effectiveness of the Issue Date in order to allow the issuance of shares
of Common Stock pursuant thereto to be made pursuant to registration or an exemption from
registration or other methods for compliance available under federal or state securities laws;
provided that the issuance of shares shall occur at the earliest date at which the Company
reasonably anticipates
3
that the issuance of shares will not cause a violation. The Company shall inform the Grantee
in writing of its decision to defer the effectiveness of the Issue Date. In connection with the
issuance of shares of Common Stock on the Issue Date, the Grantee shall execute and deliver to the
Company such representations in writing as may be requested by the Company in order for it to
comply with applicable requirements of federal and state securities laws.
(b) The Company may issue shares of Common Stock under this Agreement only if (i) the shares
of Common Stock that are to be issued are registered under the Securities Act and any and all other
applicable securities laws, or (ii) the Company, upon advice of counsel, determines that the
issuance of such shares of Common Stock is exempt from registration requirements.
(c) The Grantee acknowledges and agrees that the Company is under no obligation to register,
under the Securities Act or any other applicable securities laws, any of the shares of Common Stock
to be issued to the Grantee on the Issue Date or to take any action that would make available any
exemption from registration. The Grantee further acknowledges and agrees that if the shares of
Common Stock to be issued to the Grantee on the Issue Date have not been registered under the
Securities Act and all other applicable securities laws, those shares will be “restricted
securities” within the meaning of Rule 144 under the Securities Act and must be held indefinitely
without any transfer, sale or other disposition unless (i) the shares are subsequently registered
under the Securities Act and all other applicable securities laws, or (ii) the Grantee obtains an
opinion of counsel that is satisfactory in form and substance to counsel for the Company that the
shares may be sold in reliance on an exemption from registration requirements. In the event that
the shares to be issued on the Issue Date are “restricted securities,” the certificate(s)
representing the shares of Common Stock will 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 such shares and the stock transfer records of the Company will reflect
stop-transfer instructions with respect to such shares.
10. Notices; Deliveries. Any notice required to be given or delivered to the Company under
the terms of this Agreement shall be in writing and addressed to the Company, in care of its
Secretary, at its principal office at 00000 Xxxxx Xxxxxx Xxx, Xxxxxxx, Xxxxxxx 00000. Any notice
to be given or delivered to the Grantee shall be in writing and addressed to him at the address
given by him beneath his signature hereto. Either party hereto may hereafter designate a different
address in writing to the other party. Any notice shall be deemed to have been given or delivered
(a) upon personal delivery; or (b) upon receipt of facsimile transmission; or (c) one business day
after deposit with a nationally recognized overnight courier for overnight delivery; or (d) three
business days after deposit in the U.S. mail, first class postage prepaid, and properly addressed
to the party to be notified.
11. Disputes. As a condition of the granting of the RSUs, Grantee and his heirs and
successors or permitted transferees agree that (a) any dispute or disagreement that may arise
hereunder shall be determined by the Committee in its sole discretion and judgment, (b) all
decisions of the Committee with respect to any questions or issues arising under the Plan or under
this Agreement shall be conclusive on all persons having an interest in the RSUs, and (c) any such
determination and any interpretation by the Committee of the terms of the Plan and this
4
Agreement shall be final and shall be binding and conclusive, for all purposes, upon the
Company, Grantee, his heirs, personal representatives, and permitted transferees.
12. RSUs Subject to Plan. The Grantee acknowledges that he has received and carefully
reviewed a copy of the Plan on or prior to the Grant Date. This Agreement and the RSUs evidenced
hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to
the express terms and provisions of the Plan. Unless otherwise explicitly stated herein, in the
event of a conflict between any term or provision contained herein and a term or provision of the
Plan, the applicable terms and provisions of the Plan shall govern and prevail under all
circumstances.
13. Miscellaneous.
(a) Nothing herein contained shall affect Grantee’s right to participate in and receive
benefits from and in accordance with the then current provisions of any employee pension, welfare,
or fringe benefit plan or program of the Company.
(b) Whenever the term “Grantee” is used herein under circumstances applicable to any other
person or persons to whom the RSUs, in accordance with the provisions of this Agreement or the
Plan, may be transferred, the word “Grantee” shall be deemed to include such person or persons.
Words used herein, regardless of the number and gender specifically used, shall be deemed and
construed to include any other number, singular or plural, and any other gender, masculine,
feminine or neuter, as the context requires.
(c) If any provision of this Agreement or of the Plan would disqualify the Agreement or the
Plan under Rule 16b-3 promulgated under the Exchange Act, or would otherwise fail to comply with
Rule 16b-3, such provision shall be construed or deemed amended to conform to Rule 16b-3 to the
extent permitted by applicable law and deemed advisable by the Committee.
(d) This Agreement shall be binding upon and inure to the benefit of the Company and the
Grantee and their respective heirs, administrators, successors, or permitted transferees or
assigns.
(e) The interpretation, performance and enforcement of this Agreement shall be governed by the
laws of the State of Arizona, notwithstanding any Arizona or other conflicts-of-law principles to
the contrary.
[Signature page follows.]
5
IN WITNESS WHEREOF, the Company and Grantee have executed and delivered this Agreement as of
the date first above written, which date is the Grant Date of the RSUs.
| ALLIED WASTE INDUSTRIES, INC. | ||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
| GRANTEE | ||||||
| Name: | ||||||
| Address: | ||||||
6
