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                                                                   EXHIBIT 10.21

                              EMPLOYMENT AGREEMENT


         THIS EMPLOYMENT AGREEMENT, made and entered into as of the 19th day of
February, 1999 (the "EFFECTIVE DATE"), by and between Synagro Technologies,
Inc., a Delaware corporation (hereafter "COMPANY") and Mark A. Rome (hereafter
"EXECUTIVE"), an individual;

                              W I T N E S S E T H:

         WHEREAS, Company wishes to secure the services of the Executive subject
to the terms and conditions hereafter set forth; and

         WHEREAS, the Executive is willing to enter into this Agreement upon the
terms and conditions hereafter set forth,

         NOW, THEREFORE, in consideration of the mutual promises and agreements
set forth herein, the parties hereto agree as follows:

         1. EMPLOYMENT. During the Employment Period (as defined in Section 4
hereof), the Company shall employ Executive, and Executive shall serve, as
Executive Vice President and Chief Development Officer of the Company.
Executive's principal place of employment shall be at the Company's principal
corporate offices in Houston, Texas during the Employment Period.

         2. COMPENSATION. The Company shall pay or cause to be paid to Executive
during the Employment Period an annual base salary for his services under this
Agreement of not less than $120,000, payable in equal monthly or semi-monthly
installments in accordance with the Company's normal payroll procedures.
Executive's base salary shall be subject to annual review and may be increased,
depending upon the performance of the Company and Executive, upon the
recommendation of the Chairman or the Board of Directors of the Company
(hereafter "BOARD OF DIRECTORS"). Executive shall be entitled to participate in
the bonus "pool" or other structure established for the Company's top level of
management. Nothing contained herein shall preclude the payment of a bonus,
supplemental or incentive compensation to Executive provided that the Board of
Directors authorizes any such compensation payment. As additional compensation
to Executive for the services previously rendered by him, the services to be
rendered by him pursuant to, and Executive's other duties and obligations
arising under this Agreement, including, without limitation, his obligations
under Sections 12 and 14 hereof, the Company has granted to Executive options to
purchase 240,000 shares of common stock of the Company, par value $.002 per
share, between the Company and Executive.

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         3. DUTIES AND RESPONSIBILITIES OF EXECUTIVE. During the Employment
Period, Executive shall devote his services full time to the business of the
Company and perform the duties and responsibilities assigned to him by Ross M.
Patten or the Board of Directors to the best of his ability and with reasonable
diligence. In determining Executive's duties and responsibilities, Ross M.
Patten and the Board of Directors shall act in good faith and shall not assign
duties and responsibilities to Executive that are not appropriate or customary
with respect to the position of Executive hereunder. This Section 3 shall not be
construed as preventing Executive from engaging in reasonable volunteer services
for charitable, educational or civic organizations, or from investing his assets
in such form or manner as will not require a material amount of his services in
the operations of the companies or businesses in which such investments are
made.

         4. TERM OF EMPLOYMENT. Executive's term of employment with the Company
under this Agreement shall be for 24 consecutive months beginning on the
Effective Date, unless Notice of Termination pursuant to Section 7 is given by
either the Company or Executive to the other party. The Company and Executive
shall each have the right to give Notice of Termination at will, with or without
cause, at any time, subject to the terms of this Agreement regarding rights and
duties of the parties upon termination of employment. This 24-month employment
period hereunder shall be referred to herein as the "TERM OF EMPLOYMENT." The
period from the Effective Date through the date of Executive's termination of
employment for whatever reason shall be referred to herein as the "EMPLOYMENT
PERIOD."

         5. BENEFITS. Subject to the terms and conditions of this Agreement,
during the Employment Period, Executive shall be entitled to the following:

                  (a) REIMBURSEMENT OF EXPENSES. The Company shall pay or
         reimburse Executive for all reasonable travel, entertainment and other
         reasonable expenses paid or incurred by Executive in performing his
         business obligations hereunder. The Company shall also provide
         Executive with suitable office space and secretarial help. Executive
         shall provide substantiating documentation for expense reimbursement
         requests as reasonably required by the Company for its tax and other
         business records.

                  (b) EXPENSE ALLOWANCES. Executive shall be entitled to: (i) a
         car allowance of $500 per month, and (ii) family medical and dental
         insurance coverage paid for 100% by Company and which allows Executive
         to choose among all options for medical and dental insurance provided
         to other Company employees in the same area.


                  (c) OTHER BENEFITS. Executive shall be entitled to participate
         in any pension, profit-sharing, stock option, deferred compensation, or
         similar plan or program of the Company established by the Company, to
         the extent that he is eligible under the provisions thereof. Executive
         shall also be entitled to participate in any group insurance,


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         hospitalization, medical, health and accident, disability or similar
         plan or program established by the Company, to the extent that he is
         eligible under the provisions thereof.

                  (d) PAID VACATION. Executive shall initially be entitled to
         three (3) weeks of paid vacation during each 12-month period of
         employment with the Company (which shall accrue monthly on a pro rata
         basis). Executive shall thereafter be entitled to the number of days of
         paid vacation each year that is accorded under the Company's vacation
         policy as in effect from time to time or three (3) weeks, whichever is
         greater. Unused vacation days up to a maximum of two (2) weeks in one
         year shall be carried forward for a period not to exceed 12 months in
         accordance with Company's vacation policy as in effect from time to
         time.

         6. RIGHTS AND PAYMENTS UPON TERMINATION. The Executive's right to
compensation and benefits for periods after the date on which his employment
with the Company terminates for whatever reason (the "TERMINATION DATE") shall
be determined in accordance with this Section 6,

                  (a) MINIMUM PAYMENTS. Executive shall be entitled to the
         following payments, in addition to any payments or benefits to which
         the Executive is entitled under the terms of any employee benefit plan
         or the following provisions of this Section 6:

                           (1) his unpaid salary for the full month in which his
                  Termination Date occurred; provided, however, if Executive is
                  terminated for Cause pursuant to Section 6(b) below, he shall
                  only be entitled to receive his accrued but unpaid salary
                  through his Termination Date; and

                           (2) his accrued but unpaid vacation pay for the
                  period ending on his Termination Date in accordance with the
                  Company's vacation pay policy as in effect at such time.

                  (b) SEVERANCE PAYMENT. Notwithstanding any other provision of
         this Agreement to the contrary, in the event that: (i) Executive's
         employment hereunder is terminated by the Company at any time for any
         reason except (A) for Cause (as defined below) or (B) Executive's death
         or Disability (as defined below) or (ii) Executive terminates his own
         employment hereunder at any time for Good Reason (as defined below),
         then, in either such event, Executive shall be entitled to receive, and
         the Company shall be obligated to pay, a lump sum cash payment equal to
         one hundred percent (100%) the present value of Executive's annual
         salary pursuant to Section 2 or the annual salary then being paid to
         him, whichever is greater. For purposes of the immediately preceding
         sentence, the "present value" of such annual salary shall be determined
         in accordance with the regulations under Section 280G of the Code (as
         defined below). Also, except as otherwise specifically provided in this
         Section 6(b), such severance payment shall be in addition to, and shall
         not reduce or offset, any other payments that are due to Executive from
         the Company or any


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         other source or under any other agreements, except any severance pay
         plan or program maintained by the Company that covers employees
         generally. The provisions of this Section 6(b) shall supersede any
         conflicting provisions of this Agreement but shall not be construed to
         curtail, offset or limit Executive's rights to any other payments,
         whether contingent upon a Change in Control (as defined below) or
         otherwise, under the Agreement or any other agreement, contract, plan
         or other source of payment except as specifically provided herein. In
         addition, in the event of a Change in Control, Executive shall be
         entitled to receive the bonus payment described in Section 9 hereof, if
         applicable.

                  Notwithstanding any provision of this Section 6(b) to the
         contrary, the Executive must first execute an appropriate release and
         waiver agreement whereby Executive agrees to release and waive, in
         return for the severance payment described in this Section 6(b), any
         claims that he may have against the Company for (1) unlawful
         discrimination (including, without limitation, age discrimination) and
         (2) severance pay under any other severance pay plan or program
         maintained by the Company that covers Executive; provided, however,
         such agreement shall not release or waive any claims that may be
         brought by Executive for payments that may be due under this Agreement,
         without Executive's express written consent. Any severance payment
         required under this Section 6(b) shall be paid to Executive within
         twenty (20) days after Executive executes such release and waiver
         agreement, unless the parties agree in writing before then to another
         payment date or method of payment, e.g., installment payments.
         Executive shall not be required to mitigate any damages under this
         Section 6(b) or any other provision of this Agreement.

                  A "CHANGE IN CONTROL" of the Company shall be deemed to have
         occurred if any of the following shall have taken place: (1) a change
         in control is reported by the Company in response to either Item 6(e)
         of Schedule 14A of Regulation 14A promulgated under the Securities
         Exchange Act of 1934 (the "EXCHANGE ACT") or Item 1 of Form 8-K
         promulgated under the Exchange Act, or any successor provisions
         thereto; (2) any "person" (as such term is used in Sections 13(d) and
         14(d)(2) of the Exchange Act) is or becomes the "beneficial owner" (as
         defined in Rule 13d-3 under the Exchange Act), or any successor
         provisions thereto, directly or indirectly, of securities of the
         Company representing twenty-five (25%) or more of the combined voting
         power of the Company's then-outstanding securities; (3) the approval by
         the stockholders of the Company of a reorganization, merger, or
         consolidation, in each case with respect to which persons who were
         stockholders of the Company immediately prior to such reorganization,
         merger, or consolidation do not, immediately thereafter, own or control
         more than fifty percent (50%) of the combined voting power entitled to
         vote generally in the election of directors of the reorganized, merged
         or consolidated Company's then outstanding securities, or a liquidation
         or dissolution of the Company or of the sale of all or substantially
         all of the Company's assets; (4) in the event any person shall be
         elected by the stockholders of the Company to the Board of Directors
         who shall have not been nominated for election by a majority of the
         Board of Directors or

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         any duly appointed committee thereof; or (5) following the election or
         removal of directors, a majority of the Board of Directors consists of
         individuals who were not members of the Board of Directors two (2)
         years before such election or removal, unless the election of each
         director who is not a director at the beginning of such two-year period
         has been approved in advance by directors representing at least a
         majority of the directors then in office who were directors at the
         beginning of the two-year period.

                  "DISABILITY" means a "permanent and total disability" as
         defined in Section 22(e)(3) of the Code and the Treasury regulations
         thereunder. Evidence of such Disability shall be certified by a
         physician acceptable to both the Company and Executive. In the event
         that the parties are not able to agree on the choice of a physician,
         each shall select a physician who, in turn, shall select a third
         physician to render such certification. All costs relating to the
         determination of whether Executive has incurred a Disability shall be
         paid by the Company.

                  "CODE" means the Internal Revenue Code of 1986, as amended.
         References in this Agreement to any Section of the Code shall include
         any "Successor Provisions" as defined in Section 9(e).

                  "CAUSE" means a termination of employment directly resulting
         from: (1) the Executive having engaged in intentional misconduct that
         caused or would have caused, if the Company did not intervene, a
         serious violation by the Company of any state or federal laws, (2) the
         Executive having engaged in a theft of corporate funds or corporate
         assets or in a material act of fraud upon the Company, (3) an
         intentional act of personal dishonesty taken by the Executive that was
         intended to result in personal enrichment of the Executive at the
         expense of the Company, (4) repeated violations by the Executive of
         Executive's primary or regular obligations under this Agreement or
         under written policies of the Company which are demonstrably willful on
         the Executive's part, and for which Executive has received more than
         two written warnings that specify each area of Executive's violations,
         (5) Executive's use of illegal drugs as evidenced by a drug test
         authorized by Company, (6) Executive's final conviction (or the entry
         of a plea of nolo contendere or equivalent plea) in a court of
         competent jurisdiction of a felony or other crime involving dishonesty,
         and (7) a breach by the Executive during the Employment Period of the
         provisions of Sections 11, 12, 13 or 14 below, if such breach results
         in a material injury to the Company.

                  "GOOD REASON" means the occurrence of any of the following
         events without Executive's express written consent:

                           (1) A ten percent (10%) or greater reduction in
                  Executive's annual base salary; or

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                           (2) Any breach by the Company or its successors of
                  any material provision of this Agreement; or

                           (3) A substantial and adverse change in the
                  Executive's duties, control, authority, status or position, or
                  the assignment to the Executive of any duties or
                  responsibilities which are materially inconsistent with such
                  status or position, or a material reduction in the duties and
                  responsibilities previously exercised by the Executive, or a
                  loss of title, loss of office, loss of significant authority,
                  power or control, or any removal of Executive from, or any
                  failure to reappoint or reelect him to, such positions, except
                  in connection with the termination of his employment for
                  Cause, Disability or death; or

                           (4) Following a Change in Control (as defined in
                  Section 6(b)) any of the following events:

                                    (A) the failure by the Company or its
                           successor to expressly assume and agree to continue
                           and perform this Agreement in the same manner and to
                           the same extent that the Company would be required to
                           perform if such Change in Control had not occurred;

                                    (B) a relocation of more than twenty-five
                           (25) miles of Executive's principal office from the
                           location of such office immediately prior to the
                           Change in Control date;

                                    (C) a substantial increase in the business
                           travel required of Executive by the Company or its
                           successor; or

                                    (D) the Company or its successor fails to
                           continue in effect any pension plan,
                           health-and-accident plan, or disability income plan
                           in which Executive was participating at the time of
                           the Change in Control (or plans providing Executive
                           with substantially equal and similar benefits), or
                           the taking of any action by the Company or its
                           successor which would adversely affect Executive's
                           participation in or materially reduce his benefits
                           under any such plan that was enjoyed by him
                           immediately prior to the Change in Control.


                  (c) STOCK OPTIONS. In the event of a Change in Control,
         Executive's resignation for Good Reason or Executive's termination
         without Cause, all unvested stock options previously granted to
         Executive shall immediately vest and be exercisable as set forth below.
         In the event that there is a termination of Executive's employment
         hereunder for any reason, Executive shall be entitled to exercise any
         and all stock options that were previously granted

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         to him by the Company, and are outstanding, vested and unexercised as
         of his Termination Date, during the exercise period ending on the
         shorter of (i) two (2) years from his Termination Date or (ii) the
         expiration date of the stock option as specified in the stock option
         plan or stock option agreement, as applicable, notwithstanding any
         provision in such plan or agreement that provides for a more limited
         time period to exercise stock options following termination of
         employment; provided however, if said stock option plan or stock option
         agreement provides therein for a longer period of time to exercise such
         outstanding, vested and unexercised stock options following his
         Termination Date, then such stock option plan or agreement shall
         control and the remaining provisions of this Section 6(c) shall be
         inapplicable and without further force or effect. In the event that
         there is a termination of Executive's employment hereunder for Cause or
         Executive voluntarily resigns without Good Reason within two years for
         the date of this Agreement, Executive shall forfeit any and all stock
         options that were previously granted to him by the Company, and are
         unvested and unexercised as of his Termination Date.

                  During the extension period specified in the previous
         paragraph, if applicable, the Executive shall be considered an employee
         of the Company who shall make himself available to provide consulting
         services to the Company in consideration for such extension of the
         option exercise period and any post-termination payments provided to
         Executive under Section 6(a) or (b) of this Agreement. In this regard,
         Executive agrees to be classified as an employee of the Company solely
         for the limited purpose of making himself available to provide
         consulting services on an as-needed basis; provided, however, Executive
         hereby specifically waives any right, entitlement, claim or demand to
         (i) any additional compensation for such consulting services and (ii)
         coverage or benefits under any of the Company's employee benefit plans
         or programs, or other perquisites, terms and conditions of employment,
         except as expressly specified in other provisions of this Agreement.
         Except as expressly provided in this Section 6(c), the provision of
         consulting services by Executive shall not expand his rights or duties
         under this Agreement. Executive hereby agrees to provide, upon request
         of the Company, consulting services to the Company on the following
         terms and conditions:

                  (1)   Executive will make himself available, on an as-needed
                        basis, to provide consulting services to the Company for
                        up to three (3) days per month during the period
                        beginning on the day after his Termination Date and
                        ending on the last day of the extension period for
                        exercising stock options as provided in the first
                        paragraph of Section 6(c) above, subject to the
                        following conditions:

                        (A)  At least five (5) days written advance notice to
                             Executive is provided by the Company;

                        (B)  There is no concurrent illness of Executive or his
                             spouse;



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                        (C)  There is no prior commitment of Executive
                             including, without limitation, vacation or
                             attention to personal affairs; and

                        (D)  No travel is required of Executive in excess of 200
                             miles round-trip.

                        Executive, in any particular instance, may waive any or
                        all of the conditions set forth in clauses (A), (B), (C)
                        or (D) above in his complete discretion. Any such waiver
                        shall not be a continuing waiver and shall not release
                        Executive of any of his rights hereunder.

                  (2)   Executive agrees to provide such information, services,
                        advice and recollection of events as may from time to
                        time be reasonably requested by, or on behalf of, the
                        Company regarding corporate, regulatory or business
                        matters of which Executive may have knowledge,
                        information or understanding, including testifying
                        truthfully in any litigation or other proceedings
                        involving the Employer, provided that (i) Executive
                        first determines that his interests are not adverse, or
                        potentially adverse, to those of the Company, and (ii)
                        the Company has indemnified Executive to his
                        satisfaction including, without limitation, for
                        reasonable attorney's fees and costs. The parties hereto
                        agree that it is the quality, and not the quantity, of
                        the consulting services to be provided by Executive that
                        is important to the Company.

                  (3)   The Company will reimburse Executive for all reasonable
                        out-of-pocket expenses incurred by Executive in the
                        course of his performance of consulting services,
                        including, without limitation, supplies, mileage and
                        travel expenses. Executive agrees not to incur any
                        expense, obligation, or liability on behalf of the
                        Company without its prior written consent.

                  (4)   The provision of consulting services by Executive for
                        the Company is non-exclusive and shall not, in any way,
                        limit the rights of Executive to seek and maintain other
                        employment or to perform compensatory services on behalf
                        of any other person or entity.

                  (5)   The consulting services contemplated under this Section
                        6(c) shall not be considered part of Executive's
                        Employment Period pursuant to Section 4, nor affect his
                        Termination Date.

         7. NOTICE OF TERMINATION. Any termination by the Company or the
Executive shall be communicated by Notice of Termination to the other party
hereto. For purposes of this Agreement,



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the term "NOTICE OF TERMINATION" means a written notice which indicates the
specific termination provision of this Agreement relied upon and sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated.

         8. NO MITIGATION REQUIRED. Executive shall not be required to mitigate
the amount of any payment provided for under this Agreement by seeking other
employment or in any other manner.

         9. CHANGE IN CONTROL: REQUIREMENT OF BONUS PAYMENT IN CERTAIN
CIRCUMSTANCES.

                  (a) In the event that Executive is deemed to have received an
         "excess parachute payment" (as such term is defined in Section 280G(b)
         of the Code) which is subject to the excise taxes (the "EXCISE TAXES")
         imposed by Section 4999 of the Code in respect of any payment pursuant
         to this Agreement, or any other agreement, plan, instrument or
         obligation, in whatever form, the Company shall make the Bonus Payment
         (defined below) to Executive promptly after the date on which Executive
         received or is deemed to have received any excess parachute payment
         notwithstanding any contrary provision herein.

                  (b) The term "BONUS PAYMENT" means a cash payment in an amount
         equal to the sum of (i) all Excise Taxes payable by Executive, plus
         (ii) all additional Excise Taxes and federal or state income taxes to
         the extent such taxes are imposed in respect of the Bonus Payment, such
         that Executive shall be in the same after-tax position and shall have
         received the same benefits that he would have received if the Excise
         Taxes had not been imposed. For purposes of calculating any income
         taxes attributable to the Bonus Payment, Executive shall be deemed for
         all purposes to be paying income taxes at the highest marginal federal
         income tax rate, taking into account any applicable surtaxes and other
         generally applicable taxes which have the effect of increasing the
         marginal federal income tax rate and, if applicable, at the highest
         marginal state income tax rate, to which the Bonus Payment and
         Executive are subject. An example of the calculation of the Bonus
         Payment is set forth below: Assume that the Excise Tax rate is 20%, the
         highest federal marginal income tax rate is 40% and Executive is not
         subject to state income taxes. Further assume that Executive has
         received an excess parachute payment in the amount of $200,000, on
         which $40,000 in Excise Taxes are payable. The amount of the required
         Bonus Payment is thus $100,000. The Bonus Payment of $100,000, less
         additional Excise Taxes on the Bonus Payment of $20,000 (i.e., 20% x
         $100,000) and income taxes of $40,000 (i.e., 40% x $100,000), yields
         $40,000, the amount of the Excise Taxes payable in respect of the
         original excess parachute payment.

                  (c) Executive agrees to reasonably cooperate with the Company
         to minimize the amount of the excess parachute payments, including,
         without limitation, assisting the Company in establishing that some or
         all of the payments received by Executive that are

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         "contingent on a change", as described in Section 280G(b)(2)(A)(i) of
         the Code, are reasonable compensation for personal services actually
         rendered by Executive before the date of such change or to be rendered
         by Executive on or after the date of such change. In the event that the
         Company is able to establish that the amount of the excess parachute
         payments is less than originally anticipated by Executive, Executive
         shall refund to the Company any excess Bonus Payment to the extent not
         required to pay Excise Taxes or income taxes (including those incurred
         in respect of receipt of the Bonus Payment). Notwithstanding the
         foregoing, Executive shall not be required to take any action which his
         attorney or tax advisor advises him in writing (i) is improper or (ii)
         exposes Executive to material personal liability. Executive may require
         the Company to deliver to Executive an indemnification agreement in
         form and substance satisfactory to Executive as a condition to taking
         any action required by this subsection (c).

                  (d) The Company shall make any payment required to be made
         under this Section 9 in cash and on demand. Any payment required to be
         paid by the Company under this Section 9 which is not paid within 30
         days of receipt by the Company of Executive's written demand therefor
         shall thereafter be deemed delinquent, and the Company shall pay to
         Executive immediately upon demand interest at the highest nonusurious
         rate per annum allowed by applicable law from the date such payment
         becomes delinquent to the date of payment of such delinquent sum with
         interest.

                  (e) In the event that there is any change to the Code which
         results in the recodification of Section 280G or Section 4999 of the
         Code, or in the event that either such section of the Code is amended,
         replaced or supplemented by other provisions of the Code of similar
         import ("SUCCESSOR PROVISIONS"), then this Agreement shall be applied
         and enforced with respect to such new Code provisions in a manner
         consistent with the intent of the parties as expressed herein, which is
         to assure that Employee is in the same after-tax position and has
         received the same benefits that he would have been in and received if
         any taxes imposed by Section 4999 or any Successor Provisions had not
         been imposed.

         10. POST-TERMINATION MEDICAL COVERAGE. If the employment of Executive
is terminated for any reason except for Cause (as defined in Section 6(b)),
death or voluntary resignation without Good Reason, then the Company shall
provide post-employment medical coverage in accordance with the terms and
conditions of this Section 10. The Company shall continue to cover Executive and
his spouse (hereinafter referred to as "SPOUSE") and his eligible dependent
children, if any, from the Termination Date until two (2) years following the
Termination Date, under the group health care plan maintained by the Company to
provide major medical insurance coverage for employees and their dependents
(such group medical plan or its successor shall be hereinafter referred to as
the "HEALTH CARE PLAN").


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         Executive, on behalf of himself and his Spouse and other dependents, if
any, shall be required to pay premiums for their coverage under the Health Care
Plan at the rates, if any, charged by the Company to active employees who are
senior officers of the Company at the time the premium is charged. Any
post-employment coverage under the Health Care Plan provided under this Section
10 shall run concurrently with COBRA continuation coverage under the Health Care
Plan and, therefore, Executive and the other qualifying beneficiaries shall
elect any COBRA continuation coverage offered to them under the Health Care Plan
following the Termination Date. The Company shall not be responsible for the
payment of any income or other taxes which may be imposed on Executive, or on
his Spouse or dependents, as the result of receiving coverage under the Health
Care Plan pursuant to this Section 10.

         Executive, on behalf of himself and his Spouse and dependents, hereby
agrees and consents to acquire and maintain any coverage that of any them are
entitled to at any time during the two year period (as specified above in this
Section 10) under the Medicare program or any similar or succeeding plan or
program that is sponsored or maintained by the United States Government or any
agency thereof (hereinafter referred to as "MEDICARE"). The coverage described
in the immediately preceding sentence includes, without limitation, parts A and
B of Medicare and any additional or successor parts of Medicare. Executive, on
behalf of himself and his Spouse, further agrees and consents to pay all
required premiums and other costs for Medicare coverage from their personal
funds. Medicare coverage shall be primary payor to the coverage provided under
the Health Care Plan to the extent permitted by applicable federal law.

         11. CONFLICTS OF INTEREST. In keeping with his fiduciary duties to
Company, Executive hereby agrees that he shall not become involved in a conflict
of interest, or upon discovery thereof, allow such a conflict to continue at any
time during the Employment Period. Moreover, Executive agrees that he shall
immediately disclose to the Board of Directors any facts that might involve a
conflict of interest that has not been approved by the Board of Directors.

         Executive and Company recognize and acknowledge that it is not possible
to provide an exhaustive list of actions or interests that may constitute a
"conflict of interest." Moreover, Company and Executive recognize there are many
borderline situations. In some instances, full disclosure of facts by the
Executive to the Board of Directors may be all that is necessary to enable
Company to protect its interests. In others, if no improper motivation appears
to exist and Company's interests have not demonstrably suffered, prompt
elimination of the outside interest may suffice. In other egregious instances,
it may be necessary for Company to terminate Executive's employment for Cause
pursuant to Section 6(b) hereof. The Board of Directors reserves the right to
take such action as, in its good faith judgment, will resolve the conflict of
interest.

         Executive hereby agrees that any direct or indirect interest in,
connection with, or benefit from any outside activities, particularly commercial
activities, which interest might adversely affect the Company or any of its
affiliated entities, involves a possible conflict of interest. Circumstances

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in which a conflict of interest on the part of Executive would or might arise,
and which should be reported immediately to the Board of Directors, include, but
are not limited to, any of the following:

                  (a) Ownership of more than a de minimis interest in any
         lender, supplier, contractor, customer or other entity with which
         Company or any of its affiliated entities does business;

                  (b) Misuse of information, property or facilities to which
         Executive has access in a manner which is demonstrably injurious to the
         interests of Company or any of its affiliated entities, including its
         business, reputation or goodwill; or

                  (c) Materially trading in products or services connected with
         products or services designed or marketed by or for the Company or any
         of its affiliated entities.

         For purposes of this Agreement, "AFFILIATED ENTITY" means any entity
which owns or controls, is owned or controlled by, or is under common ownership
or control with, the Company.

         12. CONFIDENTIAL INFORMATION. (a) CONFIDENTIAL INFORMATION DEFINED.
Executive hereby acknowledges that in his senior management position, he will
create, acquire and have access to confidential information and trade secrets
pertaining to the business of Company (hereafter "Confidential Information" as
defined below). Executive hereby acknowledges that such Confidential Information
is unique and valuable to Company's business and that Company would suffer
irreparable injury if Confidential Information was divulged to the public or to
persons or entities in competition with Company. Therefore, Executive hereby
covenants and agrees to keep in strict secrecy and confidence, both during and
after the Employment Period, any Confidential Information. Executive
specifically agrees that he will not at any time disclose to others, use, copy
or permit to be copied, except in pursuance of his duties on behalf of Company
or with the prior consent of Company, Confidential Information relating to the
Company or any of its affiliated entities. For purposes of this Agreement,
"CONFIDENTIAL INFORMATION" shall mean and include, without limitation,
information related to the business affairs, property, methods of operation,
future plans, financial information, customer or client information, or other
data which relates to the business or operations of Company or any of its
affiliated entities, and all other information obtained by Executive from and
during the Employment Period which concerns the affairs of Company or any of its
affiliated entities and which Company has requested be held in confidence or
could reasonably be expected to desire be held in confidence, or the disclosure
of which would likely be embarrassing, detrimental or disadvantageous to the
Company or any of its affiliated entities, or its and their directors, officers,
employees or shareholders. Confidential Information, however, shall not include
information that is at the time of receipt by Executive in the public domain or
is otherwise generally known in the industry or subsequently enters the public
domain or becomes generally known in the industry through no fault of Executive
or breach of his duty under this Section 12.

                                       12
<PAGE>   13


                  (b) REQUIRED DISCLOSURE. In the event that Executive is
         required by law which cannot be waived to disclose any Confidential
         Information, Executive agrees that he will provide prompt notice of
         such potential disclosure to Company so that an appropriate protective
         order may be sought and/or a waiver of compliance with the provisions
         of this Agreement may be granted. In the event that (i) such protection
         or other remedy is not obtained or (ii) Company waives in writing the
         compliance by Executive with this provision, Executive agrees that he
         may furnish only that portion of the Confidential Information which
         Executive is advised by written opinion of counsel is legally required
         to be disclosed, and Executive shall exercise his best efforts to
         obtain assurances that confidential treatment will be accorded such
         Confidential Information.

                  (c) DELIVERY OF DOCUMENTS. Executive further agrees to deliver
         to Company at the termination of his employment, all correspondence,
         memoranda, notes, records, drawings, plans, customer lists or other
         documents, and all copies thereof made, composed or received by
         Executive, solely or jointly with others, and which are in Executive's
         possession, custody or control at such date and which relate in any
         manner to the past, present or anticipated business of Company or any
         of its affiliated entities.

                  (d) REMEDIES. In the event of a breach or threatened breach of
         any of the provisions of this Section 12, Company shall be entitled to
         an injunction ordering the return of all such documents, and any and
         all copies thereof, and restraining Executive from using or disclosing,
         for his benefit or the benefit of others, in whole or in part, any
         Confidential Information, including, but not limited to, the
         Confidential Information which such documents contain, constitute or
         embody. Executive further agrees that any breach or threatened breach
         of any of the provisions of this Section 12 would cause irreparable
         injury to Company, for which it would have no adequate remedy at law.
         Nothing herein shall be construed as prohibiting Company from pursuing
         any other remedies available to it for any such breach or threatened
         breach, including the recovery of damages.

         13. PROPERTY RIGHTS. In keeping with his fiduciary duties to Company,
Executive hereby covenants and agrees that during his Employment Period, and for
a period of one (1) year following his Termination Date, Executive shall
promptly disclose in writing to Company any and all information, ideas,
concepts, improvements, discoveries, inventions and other intellectual
properties, whether patentable or not, and whether or not reduced to practice,
which are conceived, developed, made or acquired by Executive, either
individually or jointly with others, and which relate to the business, products
or services of Company or any of its affiliated entities. In consideration for
his employment hereunder, Executive hereby specifically sells, assigns and
transfers to Company all of his worldwide right, title and interest in and to
all such information, ideas, concepts, improvements, discoveries, inventions and
other intellectual properties.


                                       13
<PAGE>   14


         If during the Employment Period, Executive creates any original work of
authorship or other property fixed in any tangible medium of expression which
(a) is the subject matter of copyright (including computer programs) and (b)
relates to Company's present or planned business, products, or services, whether
such property is created solely by Executive or jointly with others, such
property shall be deemed a work for hire, with the copyright automatically
vesting in Company. To the extent that any such writing or other property is
determined not to be a work for hire for whatever reason, Executive hereby
consents and agrees to the unconditional waiver of "moral rights" in such
writing or other property, and to assign to Company all of his right, title and
interest, including copyright, in such writing or other property.

         Executive hereby agrees to (a) assist Company or its nominee at all
times in the protection of any and all property subject to this Section 13, (b)
not to disclose any such property to others without the written consent of
Company or its nominee, except as required by his employment hereunder, and (c)
at the request of Company, to execute such assignments, certificates or other
interests as Company or its nominee may from time to time deem desirable to
evidence, establish, maintain, perfect, protect or enforce its rights, title or
interests in or to any such property.

         14. AGREEMENT NOT TO COMPETE. Executive hereby recognizes and
acknowledges that: (a) in his executive capacity with Company he will be given
knowledge of, and access to, the Confidential Information (as described in
Section 12); (b) in the event that Executive was to enter into competition with
Company, Executive's knowledge of such Confidential Information would be of
invaluable benefit to a competitor of Company, and could cause irreparable harm
to Company's business interests; and (c) Executive's consent and agreement to
enter into the noncompetition provisions and covenants set forth herein is an
integral condition of this Agreement, without which Company would not have
agreed to provide Confidential Information to Executive, nor to his
compensation, benefits, and other terms of this Agreement. Accordingly, in
consideration for his employment, compensation, benefits, access to and
entrustment of Confidential Information, the goodwill, training and experience
provided to Executive during his Employment Period, Executive hereby covenants,
consents and agrees (regardless of whether or not there has been a Change of
Control) that during the Employment Period, and for a period two (2) years after
his employment is terminated for any reason, Executive shall not, directly or
indirectly, acting alone or in conjunction with others, for his own account or
for the account of others, including, without limitation, as an officer,
director, stockholder, owner, partner, member, manager, joint venturer,
employee, promoter, consultant, agent, lender, guarantor, representative, or
otherwise:

                  (a) Solicit, canvass, or accept any fees or business from any
         customer of Company for himself or any other person or entity engaged
         in a "Similar Business to Company" (as defined below);

                  (b) Engage or participate in any Similar Business to Company
         within any states of the United States in which the Company transacts
         business on Executive's termination of


                                       14
<PAGE>   15

         employment date, or in which, as of such termination date, the Company
         has made any plans or proposals to transact business within one year
         from such termination date (referred to herein as the "RESTRICTED
         AREA");

                  (c) Request or advise any service provider, supplier, or
         customer to reduce or cancel any business that it may transact with
         Company or any of its affiliated entities;

                  (d) Solicit, induce, or otherwise attempt to influence any
         employee of the Company or any of its affiliated entities, to terminate
         his or her relationship with the Company or any of its affiliated
         entities; or

                  (e) Make any statement or perform any act intended to advance
         an interest of an existing or prospective competitor of the Company or
         any of its affiliated entities in any way that demonstrably injures the
         reputation, goodwill or any other business interest of Company or any
         of its affiliated entities.

         For purposes of this Agreement, "SIMILAR BUSINESS TO COMPANY" means any
business or other enterprise that is competitive with the current or planned
businesses, products, services or operations of the Company or any of its
affiliated entities at the time of termination of Executive's employment
including, without limitation, municipal biosolids.

         Executive hereby agrees that the limitations set forth above on his
rights to compete with Company after his termination of employment are
reasonable and necessary for the protection of Company. In this regard,
Executive specifically agrees that such limitations as to the period of time,
geographic area and types and scopes of restriction on his activities, as
specified above, are reasonable and necessary to protect the goodwill and other
business interests of Company. However, should the time period, the geographic
area or any other non-competition provision set forth herein be deemed invalid
or unenforceable in any respect, then Executive acknowledges and agrees that, as
set forth in Section 15 hereof, reformation may be made with respect to such
time period, geographic area or other non-competition provision in order to
protect Company's reasonable business interests to the maximum permissible
extent.

         15. REMEDIES. In the event of any pending, threatened or actual breach
of any of the covenants or provisions of Section 11, 12, 13 or 14, it is
understood and agreed by Executive that the remedy at law for a breach of any of
the covenants or provisions of these Sections may be inadequate, and, therefore,
Company shall be entitled to a restraining order or injunctive relief from any
court of competent jurisdiction, in addition to any other remedies at law and in
equity. In the event that Company seeks to obtain a restraining order or
injunctive relief, Executive hereby agrees that Company shall not be required to
post any bond in connection therewith. Should a court of competent jurisdiction
or an arbitrator (pursuant to Section 24) declare any provision of Section 11,
12, 13 or 14 to be unenforceable due to an unreasonable restriction of duration
or geographical area,

                                       15
<PAGE>   16

or for any other reason, such court or arbitrator is hereby granted the consent
of each of Executive and the Company to reform such provision and/or to grant
the Company any relief, at law or in equity, reasonably necessary to protect the
reasonable business interests of Company or any of its affiliated entities.
Executive hereby acknowledges and agrees that all of the covenants and other
provisions of Sections 11, 12, 13 and 14 are reasonable and necessary for the
protection of the Company's reasonable business interests. Executive hereby
agrees that if the Company prevails in any action, suit or proceeding with
respect to any matter arising out of or in connection with Section 11, 12, 13 or
14, Company shall be entitled to all equitable and legal remedies, including,
but not limited to, injunctive relief and compensatory damages.

         16. DEFENSE OF CLAIMS. Executive agrees that, during the Employment
Period and for a period of two (2) years after his Termination Date, upon
reasonable request from the Company, he will cooperate with the Company and its
affiliated entities in the defense of any claims or actions that may be made by
or against the Company or any of its affiliated entities that affect his prior
areas of responsibility, except if Executive's reasonable interests are adverse
to the Company (or affiliated entity) in such claim or action. To the extent
travel is required to comply with the requirements of this Section 16, the
Company shall, to the extent possible, provide Executive with notice at least 10
days prior to the date on which such travel would be required. The Company
agrees to promptly pay or reimburse Executive upon demand for all of his
reasonable travel and other direct expenses incurred, or to be reasonably
incurred, to comply with his obligations under this Section 16.

         17. DETERMINATIONS BY THE BOARD OF DIRECTORS.

                  (a) TERMINATION OF EMPLOYMENT. Prior to a Change in Control
         (as defined in Section 6(b)), any question as to whether and when there
         has been a termination of Executive's employment, and the cause of such
         termination, shall be determined by the Board of Directors in its
         discretion.

                  (b) COMPENSATION. Prior to a Change in Control (as defined in
         Section 6(b)), any question regarding salary, bonus and other
         compensation payable to Executive pursuant to this Agreement shall be
         determined by the Board of Directors in its discretion.

         18. WITHHOLDINGS: RIGHT OF OFFSET. Company may withhold and deduct from
any benefits and payments made or to be made pursuant to this Agreement (a) all
federal, state, local and other taxes as may be required pursuant to any law or
governmental regulation or ruling, (b) all other normal employee deductions made
with respect to Company's employees generally, and (c) any advances made to
Executive and owed to Company.

         19. NONALIENATION. The right to receive payments under this Agreement
shall not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge or encumbrance by Executive, his dependents or beneficiaries,
or to any other person who is or may become entitled

                                       16
<PAGE>   17

to receive such payments hereunder. The right to receive payments hereunder
shall not be subject to or liable for the debts, contracts, liabilities,
engagements or torts of any person who is or may become entitled to receive such
payments, nor may the same be subject to attachment or seizure by any creditor
of such person under any circumstances, and any such attempted attachment or
seizure shall be void and of no force and effect.

         20. INCOMPETENT OR MINOR PAYEES. Should the Board of Directors
determine that any person to whom any payment is payable under this Agreement
has been determined to be legally incompetent or is a minor, any payment due
hereunder may, notwithstanding any other provision of this Agreement to the
contrary, be made in any one or more of the following ways: (a) directly to such
minor or person; (b) to the legal guardian or other duly appointed personal
representative of the person or estate of such minor or person; or (c) to such
adult or adults as have, in the good faith knowledge of the Board of Directors,
assumed custody and support of such minor or person; and any payment so made
shall constitute full and complete discharge of any liability under this
Agreement in respect to the amount paid.

         21. SEVERABILITY. It is the desire of the parties hereto that this
Agreement be enforced to the maximum extent permitted by law, and should any
provision contained herein be held unenforceable by a court of competent
jurisdiction or arbitrator (pursuant to Section 24), the parties hereby agree
and consent that such provision shall be reformed to create a valid and
enforceable provision to the maximum extent permitted by law; provided, however,
if such provision cannot be reformed, it shall be deemed ineffective and deleted
here from without affecting any other provision of this Agreement.

         22. TITLE AND HEADINGS; CONSTRUCTION. Titles and headings to Sections
hereof are for the purpose of reference only and shall in no way limit, define
or otherwise affect the provisions hereof. Any and all Exhibits referred to in
this Agreement are, by such reference, incorporated herein and made a part
hereof for all purposes. The words "herein", "hereof", "hereunder" and other
compounds of the word "here" shall refer to the entire Agreement and not to any
particular provision hereof.

         23. CHOICE OF LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO THE PRINCIPLES
OF CONFLICTS OF LAW.

         24. ARBITRATION.

                  (a) ARBITRABLE MATTERS. If any dispute or controversy arises
         between Executive and the Company as to their respective rights or
         obligations under this Agreement, then either party may submit the
         dispute or controversy to arbitration under the then-current National
         Employment Dispute Resolution Rules of the American Arbitration
         Association

                                       17
<PAGE>   18

         (AAA) (the "RULES"); provided, however, the Company shall retain its
         rights to seek a restraining order or injunctive relief pursuant to
         Section 15. Any arbitration hereunder shall be conducted before a
         single arbitrator unless the parties mutually agree to a panel of three
         arbitrators. The site for any arbitration hereunder shall be in
         Montgomery County or Harris County, Texas, unless otherwise mutually
         agreed by the parties.

                  (b) SUBMISSION TO ARBITRATION. The party submitting any matter
         to arbitration shall do so in accordance with the Rules. Notice to the
         other party shall state the question or questions to be submitted for
         decision or award by arbitration. Notwithstanding any provision in this
         Section 24, Executive shall be entitled to seek specific performance of
         the Executive's right to be paid during the pendency of any dispute or
         controversy arising under this Agreement. In order to prevent
         irreparable harm, the arbitrator may grant temporary or permanent
         injunctive or other equitable relief for the protection of property
         rights.

                  (c) ARBITRATION PROCEDURES. The arbitrator shall set the date,
         time and place for each hearing, and shall give the parties advance
         written notice in accordance with the Rules. Any party may be
         represented by counsel or other authorized representative at any
         hearing. The arbitration shall be governed by the Federal Arbitration
         Act, 9 U.S.C. Sections 1 et. seq. (or its successor). The arbitrator
         shall apply the substantive law (and the law of remedies, if
         applicable) of the State of Texas to the claims asserted to the extent
         that the arbitrator determines that federal law is not controlling.

                  (d)      COMPLIANCE WITH AWARD.

                           (1) Any award of an arbitrator shall be final and
                  binding upon the parties to such arbitration, and each party
                  shall immediately make such changes in its conduct or provide
                  such monetary payment or other relief as such award requires.
                  The parties agree that the award of the arbitrator shall be
                  final and binding and shall be subject only to the judicial
                  review permitted by the Federal Arbitration Act.

                           (2) The parties hereto agree that the arbitration
                  award may be entered with any court having jurisdiction and
                  the award may then be enforced as between the parties, without
                  further evidentiary proceedings, the same as if entered by the
                  court at the conclusion of a judicial proceeding in which no
                  appeal was taken. The Company and the Executive hereby agree
                  that a judgment upon any award rendered by an arbitrator may
                  be enforced in other jurisdictions by suit on the judgment or
                  in any other manner provided by law.

                  (e) COSTS AND EXPENSES. Each party shall pay any monetary
         amount required by the arbitrator's award, and the fees, costs and
         expenses for its own counsel, witnesses and exhibits, unless otherwise
         determined by the arbitrator in the award. The compensation and


                                       18
<PAGE>   19

         costs and expenses assessed by the arbitrator and AAA shall be paid by
         the losing party unless otherwise determined by the arbitrator in the
         award. If court proceedings to stay litigation or compel arbitration
         are necessary, the party who unsuccessfully opposes such proceedings
         shall pay all associated costs, expenses, and attorney's fees which are
         reasonably incurred by the other party as determined by the arbitrator.

         25. BINDING EFFECT: THIRD PARTY BENEFICIARIES. This Agreement shall be
binding upon and inure to the benefit of the parties hereto, and to their
respective heirs, executors, personal representatives, successors and permitted
assigns hereunder, but otherwise this Agreement shall not be for the benefit of
any third parties.

         26. ENTIRE AGREEMENT AND AMENDMENT. This Agreement contains the entire
agreement of the parties with respect to Executive's employment and the other
matters covered herein; moreover, this Agreement supersedes all prior and
contemporaneous agreements and understandings, oral or written, between the
parties hereto concerning the subject matter hereof. This Agreement may be
amended, waived or terminated only by a written instrument executed by both
parties hereto.

         27. SURVIVAL OF CERTAIN PROVISIONS. Wherever appropriate to the
intention of the parties hereto, the respective rights and obligations of said
parties, including, but not limited to, the rights and obligations set forth in
Sections 6 through 17 and 24 hereof, shall survive any termination or expiration
of this Agreement.

         28. WAIVER OF BREACH. No waiver by either party hereto of a breach of
any provision of this Agreement by any other party, or of compliance with any
condition or provision of this Agreement to be performed by such other party,
will operate or be construed as a waiver of any subsequent breach by such other
party or any similar or dissimilar provision or condition at the same or any
subsequent time. The failure of either party hereto to take any action by reason
of any breach will not deprive such party of the right to take action at any
time while such breach continues.

         29. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of Company and its affiliated entities, and its and their
successors, and upon any person or entity acquiring, whether by merger,
consolidation, purchase of assets or otherwise, all or substantially all of the
assets and business of Company. Any reference herein to "Company" shall mean the
Company as first written above, as well as any successor or successors thereto.

         This Agreement is personal to Executive, and Executive may not assign,
delegate or otherwise transfer all or any of his rights, duties or obligations
hereunder without the consent of the Board of Directors. Any attempt by the
Executive to assign, delegate or otherwise transfer this Agreement, any portion
hereof, or his rights, duties or obligations hereunder without the prior written
consent of the Board of Directors shall be deemed void and of no force and
effect. Subject to the

                                       19
<PAGE>   20

preceding provisions of this paragraph, this Agreement shall be binding upon and
inure to the benefit of Executive and his heirs and assigns.

         30. NOTICES. Notices provided for in this Agreement shall be in writing
and shall be deemed to have been duly received (a) when delivered in person or
sent by facsimile transmission, (b) on the first business day after it is sent
by air express overnight courier service, or (c) on the third business day
following deposit in the United States mail, registered or certified mail,
return receipt requested, postage prepaid and addressed, to the following
address, as applicable:

                  (1)      If to Company, addressed to:

                           Synagro Technologies, Inc.
                           5850 San Felipe, Suite 500
                           Houston, Texas 77057
                           Attention: CEO

                  (2)      If to Executive, addressed to the address set forth
                           below his name on the execution page hereof;

or to such other address as either party may have furnished to the other party
in writing in accordance with this Section 30.

         31. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute one and the same instrument.
Each counterpart may consist of a copy hereof containing multiple signature
pages, each signed by one party hereto, but together signed by both of the
parties hereto.

         32. EXECUTIVE ACKNOWLEDGMENT/NO STRICT CONSTRUCTION. The Executive
represents to Company that he is knowledgeable and sophisticated as to business
matters, including the subject matter of this Agreement, that he has read the
Agreement and that he understands its terms and conditions. The parties hereto
agree that the language used in this Agreement shall be deemed to be the
language chosen by them to express their mutual intent, and no rule of strict
construction shall be applied against either party hereto. Executive also
represents that he is free to enter into this Agreement including, without
limitation, that he is not subject to any other contract of employment or
covenant not to compete that would conflict in any way with his duties under
this Agreement. Executive acknowledges that he has had the opportunity to
consult with counsel of his choice, independent of Employer's counsel, regarding
the terms and conditions of this Agreement and has done so to the extent that
he, in his unfettered discretion, deemed to be appropriate.

                                       20
<PAGE>   21


         33. SUPERSEDING AGREEMENT. This Employment Agreement shall supersede
any prior employment agreement entered into between the Company and Executive.

         IN WITNESS WHEREOF, the Executive has hereunto set his hand, and
Company has caused these presents to be executed in its name and on its behalf,
to be effective as of the Effective Date first above written.


WITNESS:                                           EXECUTIVE:


Signature:                             Signature:
          ------------------------              ------------------------------

Printed Name:                          Printed Name:  MARK A. ROME
             ---------------------                  --------------

Date:                                  Date:
     -----------------------------         -----------------------------------

                                       Address for Notices:
                                       306 Cinnamon Oaks Lane
                                       Houston, Texas 77079




ATTEST:                                SYNAGRO TECHNOLOGIES, INC.:



By:                                    By:
   -------------------------------       -------------------------------------

Title:                                 Its:  CHAIRMAN & CEO
      ----------------------------

Printed Name:                          Printed Name: ROSS M. PATTEN
             ---------------------                   ---------------

Date:                                  Date:
     -----------------------------          ---------------------------------


                                       21