AMENDMENT TO THE AMERICAN ECOLOGY CORPORATION
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401(K) SAVINGS PLAN RESTATED JANUARY 1, 1993
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WHEREAS, American Ecology Corporation ("Employer") has heretofore adopted
the American Ecology Corporation 401(k) Savings Plan Restated January 1, 1993
(the "Plan"); and
WHEREAS, pursuant to Section 8.1 of the Plan, the Employer has reserved the
right to amend the Plan; and
WHEREAS, the Employer desires to amend the Plan to provide that Employer
contributions to the Plan shall be made in common stock of the Employer.
NOW, THEREFORE, the Plan is hereby amended as follows, effective on
September 1, 1995, except as specifically otherwise provided herein:
1. The second sentence in Section 4.1(d) of the Plan is amended in its
entirety as follows:
"From and after September 1, 1995, all contributions under Section 4.1(a)
and Section 4.1(c) by the Employer shall be made in cash or such other
property as is acceptable to the Trustee. From and after September 1, 1995,
the contributions by the Employer under Section 4.1(b) shall be made in the
form of ACommon Stock.A Common Stock shall mean the common stock of
American Ecology Corporation. The Plan may acquire and hold common stock in
accordance with Sections 407 and 408 of ERISA."
2. The third sentence in Section 4.12(a) shall be amended to add the
following at the end thereof:
", except that contributions in Common Stock shall remain invested in
Common Stock absent other investment directions by a Participant."
3. New Subsection 4.11(j) shall be added as follows:
"(j) Notwithstanding the foregoing from and after August 15, 1995, amounts
in a Participant's Rollover Account shall be distributed in accordance with
the provisions herein applicable to a Participant's Elective Account."
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4. New Section 6.14 shall be added as follows:
"6.14 Loans: Effective January 1, 1996, a Participant, the Beneficiary
of a Participant, alternate payee or any Aparty in interestA (as, defined
in ERISA Section 3(14)) who is a former Participant (hereinafter
ABorrowerA) may make application to the Administrator to borrow from the
Participant's Elective Contribution Account, the Participant's Rollover
Account, if any, and the Vested portion of the Participant's Account
containing the Employer's Non-Elective Contribution, maintained by or for
the Borrower in the Trust Fund, and the Administrator in its sole
discretion may permit such a loan. Loans shall be granted in a uniform and
non-discriminatory manner on terms and conditions determined by the
Administrator which shall not result in more favorable treatment of highly
compensated employees and shall be set forth in written procedures
promulgated by the Administrator in accordance with applicable governmental
regulations. All such loans shall also be subject to the following terms
and conditions:
(a) The amount of the loan, when added to the amount of any
outstanding loan or loans to the Borrower from any other plan of the
Employer or an Affiliated Employer which is qualified under Section 401(a)
of the Code, shall not exceed the lesser of (i) $50,000, reduced by the
excess, if any, of the highest outstanding balance of loans from all such
plans during the one-year period ending on the day before the date on which
such loan was made over the outstanding balance of loans from the Plan on
the date on which such loan was made or (ii) fifty percent (50%) of the
present value of the Borrower's total Vested account balance under the
Plan. In no event shall a loan of less than $1,000 be made to a Borrower. A
Borrower may not have more than one (1) loan outstanding at a time under
this Plan, and a Borrower will be limited to a maximum of one (1) loan per
year from this Plan.
(b) The loan shall be for a term not to exceed five (5) years, and
shall be evidenced by a note signed by the Borrower. The loan shall be
payable in periodic installments and shall bear interest at a reasonable
rate which shall be determined by the Administrator on a uniform and
consistent basis and set forth in the procedures in accordance with
applicable governmental regulations. Payments by a Borrower who is an
Employee will be made by means of payroll deduction from the Borrower's
compensation. If a Borrower is not receiving compensation from the
Employer, the loan repayment shall be made in accordance
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with the terms and procedures established by the Administrator. A Borrower
may repay an outstanding loan in full at any time.
(c) In the event an installment payment is not paid within seven (7)
days following the monthly due date, the Administrator shall give written
notice to the Borrower sent to his last known address. If such installment
payment is not made within thirty (30) days thereafter, the Administrator
shall proceed with foreclosure in order to collect the full remaining loan
balance or shall make other arrangements with the Borrower as the
Administrator deems appropriate. Foreclosure need not be effected until
occurrence of a distributable event under the terms of the Plan and no
rights against the Borrower or the security shall be deemed waived by the
Plan as a result of such delay.
(d) The unpaid balance of the loan, together with interest thereon,
shall become due and payable upon the date of distribution of the
Borrower's account under the Plan and the Trustee shall first satisfy the
indebtedness from the amount payable to the Borrower or to the Borrower's
Beneficiary before making any payments to the Borrower or to the Borrower's
Beneficiary.
(e) Any loan to a Borrower under the Plan shall be adequately secured.
Such security may include a pledge of a portion of the Borrower's right,
title and interest in the Trust Fund which shall not exceed fifty percent
(50%) of the present value of the Borrower's Vested account balance under
the Plan as determined immediately after the loan is extended. Such pledge
shall be evidenced by the execution of a promissory note by the Borrower
which shall grant the security interest and provide that, in the event of
any default by the Borrower on a loan repayment, the Administrator shall be
authorized to take any and all appropriate lawful actions necessary to
enforce collection of the unpaid loan.
(f) A request by a Borrower for a loan shall be made in writing to the
Administrator and shall specify the amount of the loan. If a Borrower's
request for a loan is approved by the Administrator, the Administrator
shall furnish the Trustee with written instructions directing the Trustee
to make the loan in a lump-sum payment of cash to the Borrower. The cash
for such payment shall be obtained by redeeming proportionately as of the
date of payment the investment fund or investment funds, or
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portions thereof, that are credited to the particular account of such
Borrower.
(g) A loan to a Borrower shall be considered an investment of the
separate account(s) of the Borrower from which the loan is made. All loan
repayments shall be credited pro rata to such separate account(s) and
reinvested exclusively in shares of one or more of the investment funds in
accordance with the Borrower's most recent investment direction made in
accordance with Section 4.12."
IN WITNESS WHEREOF, the Employer has executed this amendment on August 15,
1995.
AMERICAN ECOLOGY CORPORATION
By:_____________________________________
C. Clifford Wright, Jr.
Vice President, Chief Financial
Officer and Treasurer
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