UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 9, 2008
CLEAN HARBORS, INC.
(Exact name of registrant as specified in its charter)
Massachusetts |
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0-16379 |
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04-2997780 |
(State or other jurisdiction |
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(Commission |
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(IRS Employer |
of incorporation) |
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File Number) |
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Identification No.) |
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42 Longwater Drive, Norwell, |
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02061-9149 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code (781) 792-5000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02. |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensation Arrangements of Certain Officers. |
On December 9, 2008, acting on the recommendation of the Compensation Committee of the Board of Directors of Clean Harbors, Inc. (the Company), the Board adopted a Management Incentive Plan (the MIP) which will be effective for 2009 and subsequent fiscal years. The MIP sets forth the terms under which the Compensation Committee, which is composed solely of directors who are independent directors within the meaning of the listing requirements of the primary stock exchange on which the Companys common stock may then be listed, may award to senior managers of the Company and its subsidiaries (other than the Companys Chief Executive Officer) bonuses payable in cash based upon the level of corporate performance or satisfaction of certain other objective goals established by the Compensation Committee during the first 90 days of each year. The Compensation Committee shall be responsible for determining the terms and potential amounts of annual MIP bonuses. To the extent earned for any fiscal year, such bonuses will be payable by March 15 of the following year.
The MIP provides that the Compensation Committee will approve during the first 90 days of each fiscal year one or more Performance Criteria and Levels of Achievement which will be used in determining the extent, if any, to which MIP bonuses (which shall be expressed as a percentage of each participants actual earned base salary) will be earned for that fiscal year. Performance Criteria may be based on one or more of the following: the Companys consolidated revenues, consolidated earnings before consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), ratio of EBITDA to consolidated revenues (EBITDA Margin), earnings per share, or such other objective criteria as the Committee shall deem appropriate. Such Performance Criteria may be based on the Companys absolute performance under such measure for the year and/or upon a comparison of such performance with the performance of the Company in a prior period or the performance of a peer group of companies. The Performance Criteria and related annual MIP bonuses may also be based upon the Companys performance over either one or more of the Companys fiscal years. The MIP provides that, in connection with each such Performance Criteria, the Compensation Committee has authority to establish a Minimum Level of Achievement, a Target Level of Achievement, and a Maximum Level of Achievement which will determine the amount of MIP Bonuses which may potentially be earned.
The Company anticipates that the Boards adoption of the MIP will likely result in future payment of performance-based cash bonuses to senior managers (other than the Chief Executive Officer) and other employees similar to the bonuses which the Compensation Committee has approved in the past. However, the Boards adoption of the MIP will further clarify the terms, conditions and other criteria for the potential future award by the Compensation Committee of such cash bonuses on an annual basis.
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Item 9.01. Financial Statements and Exhibits.
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(a) |
Not applicable. |
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(b) |
Not applicable. |
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(c) |
Not applicable. |
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(d) |
Exhibits. The following exhibits are being filed herewith: |
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10.52 Clean Harbors, Inc. Management Incentive Plan |
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Clean Harbors, Inc. |
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(Registrant) |
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December 15, 2008 |
/s/ James M. Rutledge |
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Executive Vice President and |
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Chief Financial Officer |
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Exhibit 10.52
CLEAN HARBORS, INC.
MANAGEMENT INCENTIVE PLAN
The purpose of the Clean Harbors, Inc. Management Incentive Plan (the MIP) is to provide each year a strong financial incentive for performance of senior managers of the Company and its Subsidiaries (other than the Companys Chief Executive Officer) by making available potential Annual MIP Bonuses payable in cash based upon the level of corporate performance or satisfaction of certain other objective goals for the year. The Compensation Committee of the Companys Board of Directors (the Committee) shall be responsible for determining the terms and potential amounts of such Annual MIP Bonuses.
Unless defined where the term first appears in the MIP, capitalized terms shall have the respective meanings set forth in Section 6.
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The MIP shall be administered by the Committee. The Committee shall have the authority in its sole discretion, subject to and not inconsistent with the express provisions of the MIP, to administer the MIP and to exercise all the powers and authorities either specifically granted to it under the MIP or necessary or advisable in the administration of the MIP including, without limitation, to construe and interpret the MIP, to prescribe, amend and rescind rules and regulations relating to the MIP, and to make all other determinations deemed necessary or advisable for the administration of the MIP.
The Committee may appoint a chairperson and a secretary and may make such rules and regulations for the conduct of its business as it shall deem advisable, and shall keep minutes of its meetings. All determinations of the Committee shall be made by a majority of its members either present in person or participating by conference telephone at a meeting or by unanimous written consent. The Committee may delegate to one or more of its members or to one or more agents such administrative duties as it may deem advisable, and the Committee or any person to whom it has delegated duties as aforesaid may employ one or more persons to render advice with respect to any responsibility the Committee or such person may have under the MIP. All decisions, determinations and interpretations of the Committee shall be final and binding on all persons, including the Company, any Participant (or any person claiming any rights under the MIP from or through any Participant) and any shareholder.
No member of the Committee shall be liable for any action taken or determination made in good faith with respect to the MIP or any Annual MIP Bonus hereunder.
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The following terms, as used herein, have the following meanings:
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Annual MIP Bonus means any Annual MIP Bonus to which a Participant may become entitled pursuant to the MIP; provided, however, that the establishment by the Committee of a potential Annual MIP Bonus with respect to a Participant pursuant to Section 3(a) does not, by itself, entitle the Participant to payment of any such Bonus until such Bonus has been earned and becomes payable pursuant to other provisions hereof. |
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(b) |
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Base Compensation means the actual earned base salary which each Participant receives or is entitled to receive from the Company or any Subsidiary for such Participants services during any Plan Year. |
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(c) |
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Board means the Board of Directors of the Company. |
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Committee means the Compensation Committee of the Board, which shall consist during the term of the Plan of not less than two members of the Board, each of whom, at the time of appointment to the Committee and at all times during service as a member of the Committee, shall be an independent director within the meaning of the listing requirements of the primary stock exchange on which the common stock of the Company may then be listed. |
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(e) |
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Company means Clean Harbors, Inc., a corporation organized under the laws of the Commonwealth of Massachusetts, or any successor corporation. |
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(f) |
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Executive Staff means those senior executive officers of the Company and its Subsidiaries who shall report directly to the Companys Chief Executive Officer. |
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Levels of Achievement means a Minimum Level of Achievement, a Target Level of Achievement, and a Maximum Level of Achievement which may be established by the Committee with respect to each Performance Criteria for each Plan Year. |
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Maximum Level of Achievement means a specified level of achievement of a Performance Criteria applicable to a Plan Year which must be attained for the maximum portion of an Annual MIP Bonus, which is based on achievement of that Performance Criteria, to be earned. |
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(i) |
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MIP means this Clean Harbors, Inc. Management Incentive Plan, as amended from time to time. |
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(j) |
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Participant means an employee of the Company or any Subsidiary who shall, based on such employees potential contribution to the corporate performance of the Company and its Subsidiaries for any Plan Year, be selected (as evidenced by a letter from the Companys Chief Executive Officer to such Participant) by the Companys Chief Executive Officer (based upon advice from the Executive Staff) to participate in the MIP for such Plan Year. |
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(k) |
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Performance Criteria means one or more pre-established, objective measures of performance by the Company during a Plan Year selected by the Committee in its discretion to determine whether an Annual MIP Bonus has been earned in whole or in part. Performance Criteria may be based on one or more of the following: the Companys consolidated revenues, consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), ratio of EBITDA to consolidated revenues (EBITDA Margin), earnings per share, or such other objective criteria as the Committee shall deem appropriate. Such Performance Criteria may be based on the Companys absolute performance under such measure for the year and/or upon a comparison of such performance with the performance of the Company in a prior period or the performance of a peer group of companies. The Performance Criteria and related Annual MIP Bonuses may also be based upon the Companys performance over either one or more Plan Years. |
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Personal Goals means goals applicable to a Plan Year which are established by the Committee on the advice of the Companys Chief Executive Officer with respect to any member of the Executive Staff and which may include, in the Committees discretion, as examples and without limitation, such factors as the performance of a business unit of the Company or a Subsidiary for which such Participant has responsibility or satisfaction of other objective criteria such as hiring of key employees or improvement in health, safety and compliance statistics. |
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(m) |
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Plan Year means the Companys fiscal year. |
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Subsidiary means any company or other entity with respect to which the Company, either directly or indirectly through another Subsidiary, owns a majority of the common stock or other equity interests or otherwise has the power to vote or sufficient securities to elect a majority of the directors or other managers. |
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Target Level of Achievement means a specified level of achievement of a Performance Criteria applicable to a Plan Year which must be attained for the target portion of an Annual MIP Bonus which is based on achievement of that Performance Criteria to be earned. |
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Supplemental Executive Incentive Bonus means a portion of an Annual MIP Bonus to which a member of the Executive Staff may become entitled based on achievement by such member of one or more Personal Goals established by the Committee for such member for any Plan Year. |
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(q) |
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Threshold Level of Achievement means a minimum level of achievement of a Performance Criteria applicable to a Plan Year which must be attained for the minimum level of an Annual MIP Bonus which is based on achievement of that Performance Criteria to be earned. |
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