Current Assets

Purpose of the Plan
The purpose of the American Ecology Corporation 2007 Management Bonus Plan is to provide certain of its key senior management employees, for the 2007 fiscal year, with incentive compensation consistent with the interests of Company’s stockholders.

Eligibility
Eligibility in the Plan is limited to Board approved and designated senior management employees of American Ecology and its subsidiaries (the “Company”). For purposes of the Plan, the Compensation Committee of the Company’s Board of Directors is the Plan Administrator.

A listing of employees approved by the Board of Directors (“Participants”) with their respective Initial Base Percentage (“IBP”) shall be maintained and administered by the Chief Accounting Officer (“CAO”) under the direction of the Plan Administrator and is attached as Exhibit A. Participation in the Plan supersedes any prior agreements relating to the subject matter hereof, either written or verbal.

To be eligible for the incentive award (a “Bonus Award”) under the Plan, a Participant must have been employed on a full-time basis by the Company for the entire 12 months of 2007 (the “Performance Period”) and must be employed on the last day of the Performance Period and at the date of any such payment. Plan Participants whose employment with the Company has been terminated, for any reason whatsoever, prior to the payment of any Bonus Award, shall not be eligible to receive any payment hereunder.

Participant Groups
The Plan provides for three Participant categories in 2007.

President and Chief Executive Officer - Fifty percent (50%) of the bonus shall be based on the Company achieving operating income objectives, taking into account the cost of such bonuses. Up to an additional fifty percent (50%) shall be awarded, with the approval of the Board of Directors, for achieving annual priorities, updating and implementing Company initiatives and out year strategic plans, and implementing processes to ensure tracking and achievement of Board-adopted objectives.

Senior Corporate Management — This category includes three Corporate Vice Presidents and their bonuses shall be based on the following criteria:

Vice President & Chief Information Officer. Fifty percent (50%) of the bonus shall be based on the Company achieving operating income objectives, taking into account the cost of such bonuses. Up to an additional fifty percent (50%) shall be awarded, at the discretion of the CEO, for achieving priorities for support on potential acquisitions, new information systems development and implementation, servicing ongoing Information Technology needs, developing out year information system and technology plans to support strategic plans, teamwork, support for the Company’s operating facilities and other evaluative factors.

Vice President, Hazardous Waste Operations. Fifty percent (50%) of the bonus shall be based on the Company achieving operating income objectives, taking into account the cost of such bonuses. Up to an additional fifty percent (50%) shall be awarded at the discretion of the CEO for management of site efforts to achieve annual priorities, manage Company resources and complete approved capital projects within budget and on schedule, effectively manage health and safety programs, teamwork, and development of out year plans for operating facility permit expansions and investments in operating facility plant and equipment.

Vice President, Controller and Chief Accounting Officer. Fifty percent (50%) of the bonus shall be based on the Company achieving operating income objectives, taking into account the cost of such bonuses. Up to an additional fifty percent (50%) shall be awarded, at the discretion of the CEO, for compliance with federal securities regulations including financial reporting requirements and compliance and internal control requirements, investor relations, business development and financing initiatives, development of out year capital structure and finance plans, team work, and other evaluative factors.

Vice President, Sales and Marketing. Fifty percent (50%) of the bonus shall be based on the Company achieving operating income objectives, taking into account the cost of such bonuses. Up to an additional fifty percent (50%) shall be awarded, at the discretion of the CEO, for driving the overall sales and marketing effort to meet established territory targets, protect existing business, team work, market development planning for out year growth, and other evaluative factors.

Operating Facility Management — This category includes the four operating facility General Managers. Twenty-five percent (25%) of the bonus shall be based upon achievement of Company operating income objectives, taking into account the cost of such bonuses and twenty-five percent (25%) for Site operating income. Up to an additional fifty percent (50%) shall be awarded, at the discretion of the CEO, with input from the Vice President, Hazardous Waste Operations for applicable locations, based on achieving established annual priorities, regulatory compliance, health and safety program effectiveness, effective use of Company resources, completion of approved capital projects within budget and on schedule, development of recommendations for out year permit expansions and investments in operating facility plant and equipment, team work, and other evaluative factors.

Cash award at target performance

President and Chief Executive Officer: 75% of Participant’s base salary

Senior Corporate Management: 35% of Participants’ base salary for the Vice President & Chief Information Office, Vice President, Hazardous Waste Operations and Vice President, Controller and Chief Accounting Officer and 25% of base salary for the Vice President of Sales and Marketing.

Operating Facility Management: 35% of Participants’ base salary.

An additional cash award of:

25% of base salary will be added to the President and Chief Executive Officer’s award if the Company exceeds its 2007 corporate consolidated operating income by 13% or more.

10% of base salary will be added to the Senior Corporate Management group and the Operating Facility Management group participants if the Company exceeds its 2007 corporate consolidated operating income budget by 13% or more.

Procedure
The Plan Administrator shall have full power, discretion and authority to administer and interpret the Plan, including the calculation and verification of all Bonus Awards, and to establish rules and procedures for its administration, as the Plan Administrator deems necessary and appropriate. Any interpretation of the plan or other act of the Plan Administrator in administering the Plan shall be final and binding on all Plan Participants. No member of the Plan Administrator or the Board of Directors shall be liable for any action, interpretation, or construction made in good faith with respect to the Plan. No member of the Plan Administrator shall participate in the Plan. The Company shall indemnify, to the fullest extent permitted by law, each member of the Board who becomes liable in any civil action or proceeding with respect to decisions made relating to the Plan. The President and Chief Executive Officer shall provide the Plan Administrator with a year-end report of Participants in the Plan and their respective annual salaries and recommendations for evaluative factor Bonus Awards for all participants other than himself, along with any other information that the Plan Administrator may request. The Plan Administrator shall determine any evaluative factor Bonus Award for the President and Chief Executive Officer.

A Plan Participant may be removed from the Plan, with no right to any Bonus Award under the Plan, if it is determined in the discretion of the Plan Administrator that any of the following have occurred:

a) Insubordination, misconduct, malfeasance, or any formal disciplinary action taken by the Company during the performance year or prior to payment.
b) Disability. Should a Participant not be actively at work for an extended period of time due to an illness or injury, in such a way as to qualify for long-term disability benefits, he/she may not receive a bonus.

Demotion. If a Plan Participant is removed from the Participant group that made him or her eligible Participant under the Plan at any time during the Performance Period, then such employee shall be deemed to be ineligible for participation in the Plan and shall not receive any Bonus Award under the Plan.