Document:

AMENDED AND RESTATED

                               EXCELON CORPORATION

                       1997 NONQUALIFIED STOCK OPTION PLAN

Amended July 14, 2000
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<PAGE>

                              AMENDED AND RESTATED

                               EXCELON CORPORATION

                       1997 NONQUALIFIED STOCK OPTION PLAN

                                TABLE OF CONTENTS

1.       PURPOSE OF THE PLAN...................................................1
2.       ADMINISTRATION........................................................1
3.       OPTION SHARES.........................................................2
4.       AUTHORITY TO GRANT OPTIONS............................................3
5.       ELIGIBILITY...........................................................3
6.       OPTION PRICE..........................................................3
7.       DURATION OF OPTIONS...................................................3
8.       AMOUNT EXERCISABLE....................................................3
9.       EXERCISE OF OPTIONS...................................................4
10.      TRANSFERABILITY OF OPTIONS............................................4
11.      TERMINATION OF EMPLOYMENT OR DEATH OF OPTIONEE........................5
         (a)      TEMPORARY LEAVE..............................................5
         (b)      DEATH OR DISABILITY..........................................5
         (c)      RETIREMENT...................................................6
12.      EMPLOYMENT RELATIONSHIP...............................................6
13.      GENERAL RESTRICTIONS..................................................6
         (a)      INVESTMENT REPRESENTATIONS...................................6
         (b)      COMPLIANCE WITH SECURITIES LAWS..............................6
14.      NO RIGHTS AS STOCKHOLDER..............................................7
15.      EMPLOYMENT OBLIGATION.................................................8
16.      CHANGES IN THE COMPANY'S CAPITAL STRUCTURE............................8
         (a)      RIGHTS OF THE COMPANY........................................8
         (b)      RECAPITALIZATION, STOCK SPLITS, AND DIVIDENDS................8
         (c)      MERGER OF COMPANY WITH NO CHANGE OF CONTROL..................9
         (d)      SALE OR MERGER OF COMPANY WHERE COMPANY DOES NOT SURVIVE.....9
         (e)      CHANGES TO COMMON STOCK SUBJECT TO OPTIONS..................10
17.      AMENDMENT OR TERMINATION OF THE PLAN.................................11
18.      WRITTEN AGREEMENT....................................................11
19.      EFFECTIVE DATE AND DURATION OF PLAN..................................11

                              AMENDED AND RESTATED

                               EXCELON CORPORATION

                       1997 NONQUALIFIED STOCK OPTION PLAN

1.       PURPOSE OF THE PLAN.
         This 1997  Nonqualified  Stock  Option  Plan (the  "Plan")  of  eXcelon
Corporation,  a Delaware  corporation  (the  "Company"),  is designed to provide
additional  incentive to present and future  officers and other employees of the
Company.  The Company intends that this purpose will be effected by the granting
of nonqualified stock options (collectively, the "Options", and individually, an
"Option")  under the Plan which  afford such  officers  and other  employees  an
opportunity  to acquire or increase  their  proprietary  interest in the Company
through the  acquisition  of shares of its Common Stock.  By  encouraging  stock
ownership by such officers and other employees, the Company seeks to attract and
retain on a continuing  basis the services of persons of exceptional  competence
and seeks to furnish an added  incentive  for them to increase  their efforts on
behalf of the  Company.  Except as otherwise  provided,  for all purposes of the
Plan the term  "subsidiary"  shall mean any  corporation of which 50% or more of
its  outstanding  voting  stock is at the time owned by the Company or by one or
more subsidiaries or by the Company and one or more subsidiaries.

                                       -1-
<PAGE>

2.       ADMINISTRATION.
         The Plan shall be  administered  by the  President of the Company.  The
President shall have full and final authority to operate,  manage and administer
the Plan on behalf of the Company.  This authority includes,  but is not limited
to: (i) the power to grant Options  conditionally or  unconditionally;  (ii) the
power to  prescribe  the form or forms  of the  instruments  evidencing  Options
granted under the Plan; (iii) the power to interpret the Plan; (iv) the power to
provide regulations for the operation of the incentive features of the Plan, and
otherwise  to  prescribe   regulations   for   interpretation,   management  and
administration  of the Plan; (v) the power to delegate  responsibility  for Plan
operation,  management and  administration  on such terms,  consistent  with the
Plan,  as the  President  may  establish;  (vi) the power to  delegate  to other
persons the responsibility for performing ministerial acts in furtherance of the
Plan's  purpose;  and (vii)  the power to engage  the  services  of  persons  or
organizations in furtherance of the Plan's purpose, including but not limited to
banks, insurance companies, brokerage firms and consultants.

         In addition, as to each Option, the President shall have full and final
authority in his  discretion to determine:  (i) the number of shares  subject to
each Option; (ii) the time or times at which Options will be granted;  (iii) the
option price for the shares  subject to each Option;  and (iv) the time or times
when each Option shall become  exercisable,  the conditions under which exercise
may be accelerated and the duration of the exercise period.  The President shall
not be liable for any action or determination made in good faith with respect to
the Plan or any Option granted hereunder.

3.       OPTION SHARES.
         The stock subject to the Options and other provisions of the Plan shall
be shares of the Company's  Common Stock,  $.001 par value (the "Common Stock").
The total  amount of the Common  Stock  with  respect  to which  Options  may be
granted shall not exceed in the aggregate 5,500,000 shares;  provided,  however,
that the class and  aggregate  number of shares  which may be subject to Options
granted  hereunder  shall  be  subject  to  adjustment  in  accordance  with the
provisions  of  Paragraph  16  hereof;  and,  provided  further,   that  (i)  no
participant  may be awarded Options to purchase more than 50,000 shares pursuant
to grants under the Plan in any twelve (12) month period without the approval of
the  Compensation  Committee of the Board of Directors (the  "Committee");  (ii)
individual  Option  grants may not exceed  5,000  shares per grant  without  the
approval of the  Committee;  (iii) no  participant  who is an  "officer"  of the
Company within the meaning of Section 16 of the Securities Exchange Act of 1934,
as amended, may be awarded an Option without the approval of the Committee; (iv)
no  participant  may be awarded  more than two Option  grants in any twelve (12)
month period without the approval of the Committee; and (v) the aggregate number
of shares  subject  to grants  under the Plan may not  exceed  1,000,000  in any
twelve (12) month period.  Shares  subject to Options  granted  hereunder may be
treasury shares or authorized but unissued shares.

         In the event that any outstanding Option for any reason shall expire or
terminate  prior to  exercise,  the  shares of  Common  Stock  allocable  to the
unexercised  portion of such Option may again be subject to an Option  under the
Plan.

4.       AUTHORITY TO GRANT OPTIONS.
         The  President  may grant  Options  from time to time to such  eligible
officers and other  employees of the Company as he shall  determine.  Subject to
any applicable  limitations  set forth in the Plan or  established  from time to
time by the President, the number of shares of Common Stock to be covered by any
Option shall be as determined by the President.

5.       ELIGIBILITY.
         Options may be granted to officers  and other  employees of the Company
or its  subsidiaries;  provided,  however,  that no such participant may, in any
twelve  (12) month  period,  be awarded  Options to  purchase  more than  50,000
shares, except as otherwise set forth in Section 3 above.

6.       OPTION PRICE.
         The price at which shares may be purchased pursuant to Options shall be
specified by the President at the time the Option is granted.

                                      -2-
<PAGE>

7.       DURATION OF OPTIONS.
         The  President  in his  discretion  may provide that an Option shall be
exercisable  during any  specified  period of time from the date such  Option is
granted.

8.       AMOUNT EXERCISABLE.
         Each Option may be exercised,  so long as it is valid and  outstanding,
from time to time in part or as a whole, subject to any limitations with respect
to the number of shares for which the Option may be  exercised  at a  particular
time and to such other conditions as the President in his discretion may specify
upon granting the Option.

9.       EXERCISE OF OPTIONS.
         Subject to the  provisions  of  Paragraph 13 hereof,  Options  shall be
exercised by the  delivery of written  notice to the Company  setting  forth the
number of shares with respect to which the Option is to be  exercised,  together
with (a) cash,  certified  check,  bank draft or postal or express  money  order
payable to the order of the Company for an amount  equal to the option  price of
such shares, or, (b) with the consent of the Company,  shares of Common Stock of
the Company having a fair market value equal to the option price of such shares,
or, (c) with the  consent of the  Company,  a  combination  of (a) and (b),  and
specifying  the  address  to which the  certificates  for such  shares are to be
mailed. For the purpose of the preceding sentence,  the fair market value of the
shares of Common Stock so delivered  to the Company  shall be the closing  price
per share as reported on the date of exercise  by the  National  Association  of
Securities Dealers Automated  Quotation System,  Inc. As promptly as practicable
after  receipt of such  written  notification  and  payment,  the Company  shall
deliver to the  optionee  certificates  for the number of shares with respect to
which  such  Option  has  been so  exercised,  issued  in the  optionee's  name;
provided,  however, that such delivery shall be deemed effected for all purposes
when  a  stock   transfer  agent  of  the  Company  shall  have  deposited  such
certificates  in the United  States  mail,  addressed  to the  optionee,  at the
address specified pursuant to this Paragraph 9.

10.      TRANSFERABILITY OF OPTIONS.
         Options shall not be  transferable  by the optionee  otherwise  than by
will or under the laws of descent and  distribution,  and shall be  exercisable,
during his lifetime, only by him.

11.      TERMINATION OF EMPLOYMENT OR DEATH OF OPTIONEE.
         Except  as may be  otherwise  expressly  provided  herein  or as may be
otherwise  expressly  provided in the terms and conditions of the Option granted
to an optionee, Options may not be exercised after the earlier of:
                  (i)     the date of expiration thereof; or
                  (ii) the date of termination of the optionee's employment with
the Company if the termination is by the Company for cause (as determined by the
Company), or if voluntarily by the optionee; or
                  (iii)  thirty (30) days after  termination  of the  optionee's
employment with the Company by it without cause.

         (a) TEMPORARY LEAVE.  Whether authorized temporary leave of absence, or
absence on military or government service,  shall constitute  termination of the
employment relationship between the Company and the optionee shall be determined
by the President at the time thereof.

         (b) DEATH OR DISABILITY.  In the event the optionee's  employment  with
the Company is terminated while the optionee is an employee in good standing for
reasons of permanent  disability under the then established rules of the Company
or due to the death of the  optionee and before the date of  expiration  of such
Option,  such  Option  may be  exercised  until  the  earlier  of  such  date of
expiration or one (1) year following the date of such  termination for reason of
permanent  disability or death.  Should such termination for reason of permanent
disability or death occur after the first  anniversary  of the date on which the
optionee was first  employed by the Company,  the Option may be exercised for up
to the greater of (i) 50% of all Option  shares (and such shares shall be deemed
vested)  or (ii) the  number  of shares  that had  vested as of the date of such
death or  termination  due to disability.  After the death of the optionee,  his
executors,  administrators  or any  person or  persons to whom his Option may be
transferred by will or by the laws of descent and  distribution,  shall have the
right to exercise the Option.

         (c)  RETIREMENT.  If, before the date of expiration of the Option,  the
optionee as an employee shall be retired in good standing from the employ of the
Company for reasons of age under the then established rules of the Company,  the
Option may be exercised  until the earlier of such date of  expiration or thirty
(30) days after the date of such retirement, to the extent to which the optionee
was entitled to exercise such Option immediately prior to such retirement.

                                      -3-
<PAGE>

12.      EMPLOYMENT RELATIONSHIP.
         An employment  relationship  between the Company and the optionee shall
be deemed to exist  during any period in which the  optionee  is employed by the
Company or a subsidiary of the Company.

13.      GENERAL RESTRICTIONS.

         (a) INVESTMENT REPRESENTATIONS.  The Company may require any individual
to whom an Option is granted,  as a condition of exercising such Option, to give
written  assurances  in substance  and form  satisfactory  to the Company to the
effect that such  individual is acquiring  the shares  subject to the Option for
his or her own  account  for  investment  and not with a view to the  resale  or
distribution  thereof,  and to such other effects as the Company deems necessary
or  advisable  in order to comply  with the  Securities  Act of 1933,  as now in
effect or hereafter amended (the "Act") and applicable state securities laws.

         (b) COMPLIANCE WITH SECURITIES  LAWS. The Company shall not be required
to sell or issue any shares  under any  Option if the  issuance  of such  shares
shall  constitute a violation by the optionee or by the Company of any provision
of any law, regulation or order of any governmental authority.  Without limiting
the generality of the foregoing,  upon exercise of any Option, the Company shall
not be required to issue such shares  unless the Company has  received  evidence
satisfactory  to it to the  effect  that  the  holder  of such  Option  will not
transfer such shares except pursuant to a registration statement in effect under
the Act,  and under the  applicable  securities  laws of any  State,  unless the
Company has  received an opinion of counsel  satisfactory  to the Company to the
effect  that  such  registration  is not  required.  Any  determination  in this
connection by the Company shall be final,  binding and conclusive.  In the event
the shares  issuable on exercise of an Option are not registered  under the Act,
the Company may imprint the  following  legend or any other legend which counsel
for the Company considers necessary or advisable to comply with the Act or other
applicable laws:

                  "The shares of stock  represented by this certificate have not
                  been registered  under the Securities Act of 1933 or under the
                  securities   laws  of  any  State  and  may  not  be  sold  or
                  transferred  except upon such  registration or upon receipt by
                  the  Corporation of an opinion of counsel  satisfactory to the
                  Corporation,   in  form  and  substance  satisfactory  to  the
                  Corporation,  that  registration is not required for such sale
                  or transfer."

         The Company may, but shall in no event be  obligated  to,  register any
securities  covered hereby  pursuant to the Act; and in the event any shares are
so  registered  the Company may remove any legend on  certificates  representing
such shares.  The Company  shall not be obligated to take any other  affirmative
action in order to cause the  exercise  of an Option or the  issuance  of shares
pursuant  thereto  to comply  with any  other  law,  regulation  or order of any
governmental authority.

14.      NO RIGHTS AS STOCKHOLDER
         No optionee  shall have rights as a stockholder  with respect to shares
covered by his Option until the date of issuance of a stock certificate for such
shares;  and, except as otherwise provided in Paragraph 16 hereof, no adjustment
for dividends, or otherwise,  shall be made if the record date therefor is prior
to the date of issuance of such certificate.

15.      EMPLOYMENT OBLIGATION.
         The  granting  of any Option  shall not  impose  upon the  Company  any
obligation  to employ or continue to employ any  optionee;  and the right of the
Company to terminate the  employment of any officer or other  employee shall not
be  diminished or affected by reason of the fact that an Option has been granted
to him.

16.      CHANGES IN THE COMPANY'S CAPITAL STRUCTURE.

         (a)      RIGHTS OF THE COMPANY.
         The  existence of  outstanding  Options shall not affect in any way the
right or power of the Company or its  stockholders  to make or authorize  any or
all  adjustments,  recapitalizations,  reorganizations  or other  changes in the

                                      -4-
<PAGE>

Company's capital  structure or its business,  or any merger or consolidation of
the Company,  or any issue of bonds,  debentures,  preferred or prior preference
stock  ahead of or  affecting  the Common  Stock or the rights  thereof,  or the
dissolution or liquidation of the Company, or any sale or transfer of all or any
part of its  assets or  business,  or any  other  corporate  act or  proceeding,
whether of a similar character or otherwise.

         (b)      RECAPITALIZATION, STOCK SPLITS, AND DIVIDENDS.
         If the Company shall effect a subdivision or consolidation of shares or
other capital  readjustment,  the payment of a stock dividend, or other increase
or reduction of the number of shares of the Common  Stock  outstanding,  without
receiving  compensation  therefor in money,  services or property,  then (i) the
number,  class,  and per share price of shares of stock  subject to  outstanding
Options hereunder shall be appropriately adjusted in such a manner as to entitle
an optionee to receive upon exercise of an Option,  for the same  aggregate cash
consideration,  the same  total  number  and class of  shares  as he would  have
received as a result of the event  requiring the adjustment had he exercised his
Option in full immediately prior to such event; and (ii) the number and class of
shares  with  respect to which  Options  may be granted  under the Plan shall be
adjusted by  substituting  for the total  number of shares of Common  Stock then
reserved  that number and class of shares of stock that would have been received
by the owner of an equal  number of  outstanding  shares of Common  Stock as the
result of the event requiring the adjustment.

         (c)      MERGER OF COMPANY WITH NO CHANGE OF CONTROL.
         After a merger of one or more corporations into the Company, or after a
consolidation  of the  Company  with one or more  corporations  in which (i) the
Company  shall be the surviving  corporation  and (ii) the  stockholders  of the
Company prior to such merger of consolidation  hold at least fifty percent (50%)
of the voting  shares of the Company  after such merger or  consolidation,  each
holder of an outstanding  Option shall, at no additional  cost, be entitled upon
exercise  of  such  Option  to  receive  (subject  to  any  required  action  by
stockholders) in lieu of the number of shares as to which such Option shall then
be so exercisable,  the number and class of shares of stock or other  securities
to which such  holder  would  have been  entitled  pursuant  to the terms of the
agreement of merger or  consolidation  if,  immediately  prior to such merger or
consolidation,  such  holder had been the holder of record of a number of shares
of Common  Stock equal to the number of shares as to which such Option  shall be
so exercised.

          (d)     SALE OR MERGER OF COMPANY WHERE COMPANY DOES NOT SURVIVE.
         If the Company is merged into or consolidated with another  corporation
under  circumstances where the Company is not the surviving  corporation,  or if
there  is  a  merger  or  consolidation  where  the  Company  is  the  surviving
corporation  and  the  stockholders  of the  Company  prior  to such  merger  or
consolidation  do not hold at least fifty  percent (50%) of the voting shares of
the Company  after such  merger or  consolidation  occurs,  or if the Company is
liquidated,  or sells or otherwise  disposes of substantially  all its assets to
another corporation while unexercised Options remain outstanding under the Plan,
(i) subject to the provisions of clause (iii) below, after the effective date of
such  merger,  consolidation  or sale,  as the case may be,  each  holder  of an
outstanding Option shall be entitled,  upon exercise of such Option, to receive,
in lieu of shares of Common  Stock,  shares of such  stock or other  securities,
cash or property as the holders of shares of Common Stock  received  pursuant to
the  terms  of the  merger,  consolidation  or  sale;  (ii)  the  President  may
accelerate the time for exercise of all unexercised and unexpired Options to and
after  a date  prior  to the  effective  date  of  such  merger,  consolidation,
liquidation or sale, as the case may be; or (iii) all outstanding Options may be
canceled  by the  President  as of  the  effective  date  of  any  such  merger,
consolidation,   liquidation   or  sale,   provided  that  (x)  notice  of  such
cancellation  shall be given to each  holder of an Option and (y) each holder of
an Option  shall have the right to  exercise  such Option to the extent that the
same is then  exercisable or, if the President  shall have  accelerated the time
for exercise of all unexercised and unexpired Options, in full during the thirty
(30) day period  preceding  the  effective  date of such merger,  consolidation,
liquidation, sale or acquisition.

          (e)     CHANGES TO COMMON STOCK SUBJECT TO OPTIONS.
         Except as herein before expressly provided, the issue by the Company of
shares of stock of any class, or securities  convertible into shares of stock of
any class,  for cash or  property,  or for labor or services  either upon direct
sale or upon the exercise of rights or warrants to subscribe  therefor,  or upon
conversion of shares or obligations of the Company  convertible into such shares
or obligations of the Company  convertible into such shares or other securities,
shall not affect, and no adjustment by reason thereof shall be made with respect
to, the number or price of shares of Common  Stock then  subject to  outstanding
Options.

                                      -5-
<PAGE>

17.      AMENDMENT OR TERMINATION OF THE PLAN.
         The President  may  terminate  the Plan at any time,  and may amend the
Plan at any time and from time to time,  subject to the limitation that,  except
as provided in  Paragraph  16 hereof,  rights and  obligations  under any Option
granted  before  termination  or  amendment  of the Plan shall not be altered or
impaired  by such  termination  or  amendment  except  with the  consent  of the
optionee.

18.      WRITTEN AGREEMENT.
         Each Option  granted  hereunder  shall be embodied in a written  option
agreement  which shall be subject to the terms and conditions  prescribed  above
and shall be signed by the President, any Vice President or the Treasurer of the
Company for and in the name and on behalf of the Company.  Such option agreement
shall contain such other  provisions as the  President in his  discretion  shall
deem available.

19.      EFFECTIVE DATE AND DURATION OF PLAN.
         The  effective  date of the Plan is  April  22,  1997,  the date of its
adoption by the Board of Directors  of the  Company.  Options may not be granted
under the Plan more than ten (10) years  after  said  effective  date.  The Plan
shall  terminate  (i) when the total  amount of the Common Stock with respect to
which Options may be granted shall have been issued upon the exercise of Options
or (ii) by action of the  President  pursuant to Paragraph 17 hereof,  whichever
shall first occur.

                                       ***

                                      -6-EXHIBIT 10.43
                                                                   -------------

                              EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT, dated as of December 8, 1999 (the "Agreement"), is
made by and between Casella Waste Systems, Inc., a Delaware corporation (the
"Company"), and John W. Casella, a resident of Rutland, Vermont (the
"Employee").

WHEREAS, the Company is in the business of solid waste services and related
businesses; and

WHEREAS, the Company and the Employee are mutually desirous that the Company
employ the Employee, and the Employee accept employment, upon the terms and
conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements of the parties herein contained, the Company and the
Employee hereby agree as follows:

         1.    Duties.
               ------

         1.1   During the Agreement Term (as defined below), the Employee shall
be President, Chief Executive Officer and Director (or such other and comparable
titles and positions as shall be given the Employee by the Board of Directors
(the "Board") of the Company) and shall faithfully perform for the Company the
duties of said office. The Company shall use its best efforts to cause the
Employee to be nominated and elected to the Board and the board of directors of
any successors to the Company for the duration of the Agreement Term (as defined
below). The Employee shall have such corporate power and authority as are
necessary to perform the duties of such office and any other office(s) that are
so assigned to him. The Employee shall report directly to the Board of Directors
of the Company. The Employee shall devote substantially all of his business time
and effort to the performance of his duties hereunder, shall use his best
efforts to advance the best interests of the Company and shall not engage in
outside business activities which materially interfere with the performance of
his duties hereunder; provided, however, that, subject to Section 6 below,
nothing in this Agreement shall preclude the Employee from devoting reasonable
periods required for participating in his family business ventures or in other
professional, educational, philanthropic, public interest, charitable, social or
community activities.

         1.2   The duties to be performed by the Employee hereunder shall be
performed primarily in Rutland, Vermont, subject to reasonable travel
requirements on behalf of the Company. The Company shall not relocate the
Employee outside of Rutland, Vermont, without his prior written consent.

         1.3   It shall not be a violation of this Agreement including but not
limited to Paragraph 1.1 of the Agreement for the Employee to:

               (a) serve on the Board of Directors or any committee thereof of
         private or public corporations not competitive with the business of
         Casella and to receive customary compensation for such services;
<PAGE>

               (b) to provide consultation or management services to businesses
         which are not competitive with the business of Casella whether for
         compensation or otherwise;

provided, however, that such activities do not interfere with the Employee's
duties with Casella and such duties do not require more than two hundred (200)
hours of service per year in the actual performance of such duties, exclusive of
travel and lodging time.

         2.    Term. The Company hereby employs the Employee, and the Employee
hereby accepts such employment, for an initial term commencing as of the date
hereof and ending on the third anniversary of such date, unless sooner
terminated in accordance with the provisions of Section 4 (said initial
three-year term, unless sooner terminated in accordance with the provisions of
Section 4, being hereinafter referred to as the "Initial Term"). The term of
this Agreement shall be automatically extended for an additional year at the
expiration of the Initial Term or any succeeding term, unless written notice of
non-extension is provided by either party to the other party 180 days prior to
the expiration of the Initial Term or the succeeding term, as the case may be
(said Initial Term and any succeeding terms, being hereinafter referred to as
the "Agreement Term").

         3.    Compensation.
               ------------

         3.1   Base Salary. During the Agreement Term and subject to the next
sentence of this Section 3.1, the Employee shall be compensated at the annual
rate of $262,000 ("Base Salary"), payable on a bi-weekly basis in accordance
with the Company's standard payroll procedures. On each anniversary of the date
hereof, the Base Salary will be increased by an amount which will not be less
than the product (if positive) of (i) the Base Salary in effect immediately
prior to such anniversary and (ii) the percentage (if positive) by which the
Consumer Price Index (All Items less shelter) for Urban Wage Earners and
Clerical Workers, for the Northeast Region, published by the United States
Government for the month preceding such anniversary exceeds such index for the
comparable month in the preceding year.

         3.2   Incentive Compensation. In addition to the Base Salary, the
Employee shall be entitled to receive a bonus ("Bonus") consisting of (i) cash,
(ii) stock options of the Company or (iii) a combination of both cash and stock
options in an amount to be determined prior to the conclusion of each fiscal
year of the Company during the Agreement Term in the sole discretion of the
Compensation Committee of the Board (the "Compensation Committee").

         3.3  Expenses. Upon submission of appropriate invoices or vouchers, the
Company shall pay or reimburse the Employee for all reasonable expenses actually
incurred or paid by him during the Agreement Term in the performance of his
duties hereunder.

         3.4   Participation in Benefit Plans. The Employee shall be entitled to
participate in any health benefit or other employee benefit plans available to
the Company's senior executives as in effect from time to time, including,
without limitation, any qualified or non-qualified pension, profit sharing and
savings plans, any death and disability benefit plans, any medical, dental,
health and welfare plans and any stock purchase programs, on terms and
conditions at least as favorable as provided to other senior executives, to the
extent that he may be eligible to do so under the applicable provisions of any
such plan. Following the termination of the

                                       -2-
<PAGE>

Employee hereunder or the expiration of any Severance Benefits (as defined in
Section 4.4.1) and for the lifetime of the Employee, the Employee and his
eligible dependents shall be entitled to continue participating (at the
Employee's sole expense) in the Company's group medical, dental, disability and
life insurance coverages (to the extent the Company's plans entitle the Employee
and his dependents to be so covered), with the Employee's cost to be determined
on a basis consistent with the method of determining employee payments under the
health care continuation requirements of the Consolidated Omnibus Reconciliation
Act of 1985 ("COBRA").

         3.5   Vacation. The Employee shall be entitled to five weeks of annual
vacation and shall be subject to the Company's standard vacation policy
applicable to someone of his position and seniority. Unused vacation shall not
be carried over into any subsequent year during the Agreement Term. The Company
shall have no obligation to pay the Employee for any unused vacation.

         3.6  Fringe Benefits and Perquisites. The Employee shall be entitled to
all fringe benefits and perquisites that are generally made available to senior
executives of the Company from time to time and that are approved by the
Compensation Committee. The Company shall, during the Agreement Term, continue
to provide the Employee with the use of a motor vehicle on the terms applicable
to the Employee on the date of this Agreement.

         4.    Termination.  The Employee's employment hereunder may be
terminated only upon the expiration of the Agreement Term of this Agreement
pursuant to Section 2 above or under the following circumstances:

         4.1   Death.  The Employee's employment hereunder shall terminate
automatically upon his death, in which event the Company shall pay to the
Employee's written designee or, if he has no written designee, to his spouse or,
if he leaves no spouse and has no written designee, to his estate, (i) Severance
and Acceleration Payment (as such terms are defined in Section 4.4.1 below)
immediately upon death, (ii) Severance Benefits to the Employee's eligible
dependents for a one-year period from the date of death and (iii) all reasonable
expenses actually incurred or paid by the Employee in the performance of his
duties hereunder prior to the date of death.

         4.2   Disability. The Company may terminate the Employee's employment
hereunder if (i) as a result of the Employee's incapacity due to physical or
mental illness, the Employee shall have been absent from his duties hereunder on
a full-time basis for an aggregate of 180 consecutive or non-consecutive
business days in any 12 consecutive-month period and (ii) within 10 days after
written notice of termination hereunder is given by the Company, the Employee
shall not have returned to the performance of his duties hereunder on a
full-time basis. The determination of incapacity or disability under the
preceding sentence shall be made in good faith by the Company based upon
information supplied by a physician selected by the Company or its insurers and
reasonably acceptable to the Employee or his legal representative. During any
period that the Employee fails to perform his duties hereunder as a result of
incapacity due to physical or mental illness (the "Disability Period"), the
Employee shall continue to receive his full Base Salary hereunder until his
employment is terminated pursuant to this Section 4.2, provided that amounts
payable to the Employee shall be reduced by the sum of the amounts, if any, paid
to the Employee during the Disability Period under any disability benefit plans
of the

                                       -3-
<PAGE>

Company. If the Employee is terminated pursuant to this Section 4.2 the Company
shall pay to the Employee (or his legal representative) (i) Severance and
Acceleration Payment (as such terms are defined in Section 4.4.1 below), (ii)
Severance Benefits to the Employee for a one-year period from the date of
termination due to disability and (iii) all reasonable expenses actually
incurred or paid by the Employee in the performance of his duties hereunder
prior to the date of termination due to disability.

         4.3   Termination by the Company.
               --------------------------

         4.3.1  The Company (i) shall have "cause" to terminate the Employee's
employment hereunder upon the Employee (A) being convicted of a crime involving
the Company (other than pursuant to actions taken at the direction or with the
approval of the Board), (B) being found by reasonable determination of the
Company, made in good faith, to have engaged in (1) willful misconduct which has
a material adverse effect on the Company, (2) willful or gross neglect which has
a material adverse effect on the Company, (3) fraud, (4) misappropriation or (5)
embezzlement in the performance of his duties hereunder or (C) having breached
in any material respect the material terms and provisions of this Agreement and
failed to cure such breach within 15 days following written notice from the
Company specifying such breach and (ii) may terminate the Employee's employment
on written notice given to the Employee at any time following the occurrence of
any of the events described in clauses (i)(A) and (i)(B) above and on written
notice given to the Employee at any time not less than 60 days following the
occurrence of any of the events described in clause (i)(C) above. However, in no
event shall the Employee's employment be considered to have been terminated for
"cause" unless and until the Employee receives a copy of a resolution adopted by
the Board finding that, in the good faith opinion of the Board, the Employee is
guilty of acts or omissions constituting "cause," which resolution has been duly
adopted by an affirmative vote of a majority of the Board, excluding the
Employee and any individual alleged to have participated in the acts
constituting "cause." Any such vote shall be taken at a meeting of the Board
called and held for such purpose, after reasonable written notice is provided to
the Employee setting forth in reasonable detail the facts and circumstances
claimed to provide a basis of termination for "cause" and the Employee is given
an opportunity, together with counsel, to be heard before the Board. In the
event the Employee's employment is terminated by the Company for "cause", the
Employee shall be entitled to continue to receive Base Salary accrued but unpaid
and expenses incurred but not repaid to the Employee, in each case only until
the effective date of such termination.

         4.3.2  In the event the Employee's employment is terminated by the
Company other than for "cause", the Employee shall be entitled to (i) Severance
and Acceleration Payment immediately upon termination and (ii) Severance
Benefits for each year during the Severance Benefits Term (as such capitalized
terms are defined in Section 4.4 below).

         4.4   Termination by Employee.
               -----------------------

         4.4.1  Definitions. For purposes of this Section 4.4, the following
terms shall have the respective meanings set forth below:

               (a) "Affiliate" means, with respect to the Company, any entity
         directly or indirectly controlled, controlling or under common control
         with the Company.

                                       -4-
<PAGE>

               (b) "Acceleration Payment" means an amount in cash equal to the
         value of (i) any Base Salary accrued but unpaid prior to the date of
         termination, (ii) Bonus accrued but unpaid prior to the date of
         termination and (iii) any vacation accrued but unused prior to the date
         of termination.

               (c) "Change of Control" means: (i) a person, corporation, entity
         or group acquires, directly or indirectly, the beneficial ownership of
         40% or more of the issued and outstanding stock of the Company in a
         single transaction or series of transactions, (ii) the Company is a
         party to a merger, consolidation or similar transaction and following
         such transaction 40% or more of the issued and outstanding securities
         of said party is beneficially owned by a person, corporation, entity or
         group other than the Company or an Affiliate of the Company, (iii) the
         Company sells or transfers all or substantially all of its assets to
         any other persons or persons other than an Affiliate of the Company,
         (iv) the shareholders of the Company approve a plan or proposal for the
         liquidation or dissolution of the Company or (v) during any two-year
         period, individuals who comprise a majority of the Board at the
         beginning of such two-year period do not comprise a majority of the
         Board at the end of such two-year period (such Board composition being
         referred to as a "Continuing Majority").

               (d) "Good Reason" means: the occurrence of (A) a Change of
         Control, accompanied by, or followed within the twelve-month period
         after a Change in Control by: (B) (i) the assignment to the Employee of
         any duties inconsistent with his status as President, Chief Executive
         Officer and Director or which require travel significantly more
         time-consuming than that required at commencement of this Agreement or,
         (ii) a material adverse alteration in the nature or status of his
         responsibilities from those provided herein or the transfer of a
         significant portion of such responsibilities to one or more other
         persons, or (iii) a material diminution in the Employee's compensation.

               (e) "Qualified Good Reason" means the occurrence of one of the
         events under clause (B)(i), (ii) or (iii) of the definition of Good
         Reason.

               (f) "Severance" means three times the sum of (i) the highest Base
         Salary that was paid to the Employee at any time prior to termination
         by the Employee for Good Reason or prior to when the Employee's
         employment is terminated by the Company other than for "cause" and (ii)
         the higher of (A) the most recent Bonus paid to the Employee prior to
         termination by the Employee for Good Reason or prior to when the
         Employee's employment is terminated by the Company other than for
         "cause" or (B) 50% of the Employee's Base Salary immediately prior to
         such termination.

               (g)  "Severance Benefits" means the benefits contemplated by
         Section 3.4 of this Agreement.

               (h)  "Severance Benefits Term" means three years from the date
         Employee elects to terminate his employment for Good Reason, or the
         Employee's employment is terminated by the Company other than for
         "cause."

                                       -5-
<PAGE>

         4.4.2 At the election of the Employee for Good Reason or Qualified Good
Reason the Employee may terminate his employment immediately upon written notice
to the Company; provided, however, that Employee must make such election to
terminate his employment for Good Reason or Qualified Good Reason within 90 days
of the occurrence of such event that qualifies as Good Reason or Qualified Good
Reason under Section 4.4.1(d) or (e), respectively, of this Agreement. If during
the Agreement Term the Employee's employment is terminated by the Employee for
Good Reason, the Employee shall be entitled to receive from the Company (i)
Severance and the Acceleration Payment immediately upon termination, (ii)
Severance Benefits for each year during the Severance Benefits Term and (iii) a
cash payment in an amount equal to the amount of any excise tax imposed on
Employee under Section 4999 of the Internal Revenue Code of 1986, as amended
("Section 4999"), increased by the additional federal and state income taxes on
such amount, such that, after payment of this additional cash payment, the
Employee's Severance, Acceleration Payment and Severance Benefits after federal
and state income taxes are equal to the amount that the Employee would have
received but for the imposition of the excise tax under Section 4999. If during
the Agreement Term the Employee's employment is terminated by the Employee for
Qualified Good Reason, the Employee shall be entitled to receive only an amount
equal to his Base Salary through the remainder of the Agreement Term, payable on
a bi-weekly basis, together with expenses incurred but not repaid to the
Employee prior to such termination.

         4.4.3 Upon 90 days' prior written notice, the Employee may terminate
his employment with the Company other than for Good Reason. If the Employee
voluntarily terminates his employment with the Company other than for Good
Reason, no further payment shall be due the Employee pursuant to Section 3 above
(other than payments for accrued and unpaid Base Salary and expenses incurred
but not repaid to the Employee, in each case prior to such termination).

         4.5   Effect of Termination on Certain Obligations. No termination of
the employment of the Employee, whether voluntary or involuntary, shall
terminate, affect or impair any of the obligations or rights of the parties set
forth in Sections 4, 5, 6, 7 and 8 of this Agreement, all of which obligations
and rights shall survive any termination of employment of the Employee
hereunder.

         5.    Covenant Not to Disclose Confidential Information. The Employee
acknowledges that during the course of his affiliation with the Company he has
or will have access to and knowledge of certain information and data which the
Company considers confidential and the release of such information or data to
unauthorized persons would be extremely detrimental to the Company. As a
consequence, the Employee hereby agrees and acknowledges that he owes a duty to
the Company not to disclose, and agrees that without the prior written consent
of the Company, at any time, either during or after his employment with the
Company, he will not communicate, publish or disclose, to any person anywhere,
or use, any Confidential Information (as hereinafter defined), except as may be
necessary or appropriate to conduct his duties hereunder, provided the Employee
is acting in good faith and in the best interest of the Company. The Employee
will use his best efforts at all times to hold in confidence and to safeguard
any Confidential Information from falling into the hands of any unauthorized
person and, in particular, will not permit any Confidential Information to be
read, duplicated or copied. The Employee will return to the Company all
Confidential Information in the Employee's possession or under the Employee's
control when the duties of the Employee no

                                       -6-
<PAGE>

longer require the Employee's possession thereof, or whenever the Company shall
so request, and in any event will promptly return all such Confidential
Information if the Employee's relationship with the Company is terminated for
any or no reason and will not retain any copies thereof. For purposes hereof,
the term "Confidential Information" shall mean any information or data used by
or belonging or relating to the Company that is not known generally to the
industry in which the Company is or may be engaged, including without
limitation, any and all trade secrets, proprietary data and information relating
to the Company's business and products, price list, customer lists, processes,
procedures or standards, know-how, manuals, business strategies, records,
drawings, specifications, designs, financial information, whether or not reduced
to writing, or information or data which the Company advises the Employee should
be treated as confidential information.

         6.   Covenant Not to Compete. The Employee acknowledges that he, at the
expense of the Company, has been and will be specially trained in the business
of the Company, has established and will continue to establish favorable
relations with the customers, clients and accounts of the Company and will have
access to trade secrets of the Company. Therefore, in consideration of such
training and relations and to further protect trade secrets, directly or
indirectly, of the Company, the Employee agrees that during the term of his
employment by the Company and for a period of two (2) years from and after the
voluntary or involuntary termination of such employment for any or no reason, he
will not, directly or indirectly, without the express written consent of the
Company:
               (a) own or have any interest in or act as an officer, director,
         partner, principal, employee, agent, representative, consultant or
         independent contractor of, or in any way assist in, any business
         located in or doing business in the United States of America or Canada
         in any area within 300 miles of any facility of the Company during the
         term of the Employee's employment by the Company which is engaged,
         directly or indirectly, in (i) the solid waste processing business,
         (ii) the utilization of recyclable materials business or (iii) any
         other business the Company is engaged in or proposes to engage in on
         the date this Agreement is terminated (the businesses described in
         clauses (a)(i), (ii) and (iii) are collectively referred to as the
         "Competitive Businesses"); provided, however, that notwithstanding the
         above, the Employee may own, directly or indirectly, solely as an
         investment, securities of any such person which are traded on any
         national securities exchange or NASDAQ if the Employee (A) is not a
         controlling person of, or a member of a group which controls, such
         person and (B) does not, directly or indirectly, own 5% or more of any
         class of securities of such person;

               (b) solicit clients, customers (who are or were customers of the
         Company within the twelve (12) months prior to termination) or accounts
         of the Company for, on behalf of or otherwise related to any such
         Competitive Businesses or any products related thereto; or

               (c) solicit, employ or in any manner influence or encourage any
         person who is or shall be in the employ or service of the Company to
         leave such employ or service.

Notwithstanding the foregoing, the terms of this covenant not to compete shall
be enforceable against Employee only to the extent that during Employee's
employment the Company continues

                                       -7-
<PAGE>

to pay Employee compensation equal to the salary level set forth in Section 3.1
of this Agreement and after termination of Employee's employment the Company
continues to pay Employee (i) his Base Salary, in the case of termination
pursuant to Section 4.4.3, and (ii) any and all termination payments and
benefits as required under Section 4 of this Agreement. Furthermore, if any
court determines that the covenant not to compete, or any part thereof, is
unenforceable because of the duration of such provision or the geographic area
or scope covered thereby, such court shall have the power to reduce the
duration, area or scope of such provisions and, in its reduced form, such
provision shall then be enforceable and shall be enforced.

         7.    Specific Performance. Recognizing that irreparable damage will
result to the Company in the event of the breach or threatened breach of any of
the foregoing covenants and assurance by the Employee contained in Sections 5 or
6 hereof, and that the Company's remedies at law for any such breach or
threatened breach will be inadequate, the Company and its successors and
assigns, in addition to such other remedies which may be available to them,
shall be entitled to an injunction, including a mandatory injunction, to be
issued by any court of competent jurisdiction ordering compliance with this
Agreement or enjoining and restraining the Employee, and each and every person,
firm or company acting in concert or participation with him, from the
continuation of such breach.

         8.    Potential Unenforceability of Any Provision. The Employee
acknowledges and agrees that he has had an opportunity to seek advice of counsel
in connection with this Agreement. If a final judicial determination is made
that any provision of this Agreement is an unenforceable restriction against the
Employee, the provisions hereof shall be rendered void only to the extent that
such judicial determination finds such provisions unenforceable, and such
unenforceable provisions shall automatically be reconstituted and became a part
of this Agreement, effective as of the date first written above, to the maximum
extent in favor of the Company that is lawfully enforceable. A judicial
determination that any provision of this Agreement is unenforceable shall in no
instance render the entire Agreement unenforceable, but rather the Agreement
will continue in full force and effect absent any unenforceable provision to the
maximum extent permitted by law.

         9.  Indemnification. To the fullest extent permitted or required by the
laws of the State of Delaware, the Company shall indemnify and hold harmless
(including the advance payment of expenses) the Employee, in accordance with the
terms of such laws, if the Employee is made a party, or threatened to be made a
party, to any threatened, pending, or contemplated suit or proceeding (whether
civil, criminal, administrative or investigative) by reason of the fact that the
Employee is or was an officer or director of the Company or any subsidiary or
affiliate of the Company, against expenses (including reasonable attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by him in connection with any such action, suit or proceeding. The
Company's obligations under this paragraph will survive the termination of this
Agreement for any reason whatsoever.

                                       -8-
<PAGE>

         10.   Notice. Any notice or other communication hereunder shall be in
writing and shall be mailed or delivered to the respective parties hereto as
follows:

               (a)    If to the Company:

                      Casella Waste Systems, Inc.
                      25 Greens Hill Lane
                      Rutland, VT 05702
                      Attention:  Chief Financial Officer and Chairman
                                  of the Board of Directors

               (b)    If to the Employee:

                      John W. Casella
                      67 Ives Avenue
                      Rutland, VT 05701

The addresses of either party hereto above may be changed by written notice to
the other party.

         11.   Amendment; Waiver. This Agreement may be amended, modified,
superseded, cancelled, renewed or extended and the terms of covenants hereof may
be waived, only by written instrument executed by the party against whom such
modification or waiver is sought to be enforced. The failure of either party at
any time or times to require performance of any provision hereof shall in no
manner affect the right at a later time to enforce the same. No waiver by either
party of the breach of any term or covenant contained in this Agreement, whether
by conduct or otherwise, in any one or more instances, shall be deemed to be, or
construed as, a further or continuing waiver of any such breach, or a waiver of
the breach of any other term or covenant in this Agreement.

         12.   Benefit and Binding Effect. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of the Company, but
shall be personal to and not assignable by the Employee. The obligations of the
Company hereunder are personal to the Employee or where applicable to his spouse
or estate, and shall be continued only so long as the Employee shall be
personally discharging his duties hereunder. The Company may assign its rights,
together with its obligations, to any corporation which is a direct or indirect
wholly-owned subsidiary of the Company; provided, however, that the Company
shall not be released from its obligations hereunder without the prior written
consent of the Employee, which consent shall not be unreasonably withheld.

         13.  GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF DELAWARE REGARDLESS OF THE LAWS THAT MIGHT BE APPLICABLE UNDER
PRINCIPLES OF CONFLICTS OF LAW.

         14.  Counterparts. This Agreement may be executed by the parties hereto
in separate counterparts, each of which when so executed and delivered shall be
an original but all such counterparts together shall constitute one and the same
instrument. Each counterpart may consist of two copies hereof each signed by one
of the parties hereto.

         15.   Headings. The headings in this Agreement are for reference only
and shall not affect the interpretation of this Agreement.

         16.   Entire Agreement. This Agreement constitutes the entire
understanding between the parties with respect to the subject matter hereof,
superseding all negotiations, prior

                                       -9-
<PAGE>

discussions and preliminary agreements. No subsequent modifications may be made
to this Agreement except by signed writing of the parties.

                  [Remainder of page intentionally left blank.]

                                      -10-
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first set forth above.

Witness: /s/ Priscilla Hughes                   /s/ John W. Casella
         --------------------                   ----------------------------
                                                John W. Casella

                                                CASELLA WASTE SYSTEMS, INC.

                                                By: /s/ James W. Bohlig
                                                    ------------------------
                                                    Name: James W. Bohlig
                                                    Title:

                                      -11-

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