Document:

ex_389328.htm

THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of the 4th day of February 2020, by and between BUTLER NATIONAL CORPORATION, a Kansas corporation of Olathe, Kansas ('Employer"), and Joe A. Peters of Overland Park, Kansas ("Employee").

 

RECITALS

 

Employer is desirous of employing Employee, and Employee wishes to continue to be the employee of Employer.

 

AGREEMENT

 

NOW, THEREFORE, on the basis of the respective promises and agreements herein contained, the parties agree that all previous Employment Agreements between Employer and Employee, if any, are canceled and terminated and a new employment arrangement is agreed to as follows:

1.0 Definitions.

 

(a)         “Board” means the board of directors of the Employer.

 

(b)         “Cause” means: (i) conviction of Employee by a court of competent jurisdiction of a felony; (ii) engaging by Employee in willful fraud in connection with his performance of the business of Employer; or (iii) Employee’s failure to cooperate in good faith with any internal, governmental, or regulatory investigation involving or in any way related to the Employer or its operations.

 

(c)         “Change in Control” means any of the following:

 

(i)         The closing of an acquisition by any person, entity or “group” within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) of Beneficial Ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of at least 50% of the then outstanding shares of common stock of the Employer or 50% of the then outstanding shares of preferred stock of the Employer;

 

(ii)         Individuals who, as of January 1, 2020 (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to January 1, 2020 whose election, or nomination for election by the Employer’s stockholders, was approved by a vote of at least a majority of the directors comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office occurs either eight months prior to or eight months following an actual or threatened election contest relating to the election of the directors of the Employer), shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board;

 

(iii)         Approval by the Employer of a reorganization, merger, consolidation, in each case, pursuant to which persons who were the stockholders of the Employer immediately prior to such reorganization, merger or consolidation do not, immediately thereafter, own collectively as a group more than 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 voting securities; or

 

(iv)         The liquidation or dissolution of the Employer or of the Employer’s approval of the sale of more than 50% of the assets of the Employer over no greater than an 18 month period measured as of the effective date of the first such sale.

 

(d)         “Code” means the Internal Revenue Code of 1986, as amended.

 

(e)         “Confidential Information” shall mean all confidential information: (i) of the Employer; or (ii) which is learned or acquired by the Employer from others with whom the Employer has a business relationship in which, and as a result of which, similar information is revealed to the Employer. Confidential Information shall also include all such confidential information, whether patentable or not, which is of a confidential, trade secret and/or proprietary character and which is either developed by Employee (alone or with others) or to which Employee shall have had access during the Employment Period as defined herein related to Employer. Confidential Information shall include (among other things) all confidential data, designs, plans, notes, memoranda, work sheets, formulas, processes, and Customer and supplier lists. The term Confidential Information shall be interpreted to the broadest extent possible under Kansas law as well as the Kansas Trade Secrets Act, and shall be deemed to encompass, without limitation, all Employer: (i) trade secrets and intellectual property; (ii) information concerning products/services and the development, manufacturing, marketing, distribution and pricing of products/services; (iii) information concerning customers, customers, customer lists and suppliers; and (iv) credit and financial data concerning the Employer and its customers and suppliers.

 

(f)         “Good Reason” means: (i) a material reduction of Employee’s Base Salary or annual cash bonus opportunity; (ii) a requirement that Employee provide services to the Employer at a location more than fifteen (15) miles from Olathe, Kansas; (iii) a material reduction in Employee’s authority, duties, or responsibilities; or (iv) any other action or inaction that constitutes a material breach by the Employer of this Agreement. Notwithstanding the foregoing, Good Reason shall not be deemed to exist unless: (i) the Employee notifies the Employer in writing of the condition allegedly giving rise to such Good Reason within 90 days of the initial existence of such condition; (ii) the Employer does not cure such condition within 30 days of such notice; and (iii) Employee terminates employment with the Employer as a result of such Good Reason within 120 days of the initial existence of such condition.

 

2.0 Employment Term.

 

(a)          General Term.         Employer hereby employs Employee, and Employee agrees to serve Employer as Employer's Officer, upon the terms and conditions hereinafter set forth for a period of sixty (60) months (“Initial Term”), commencing on the January 1, 2020 unless extended or terminated as provided herein. The Initial Term shall automatically be extended for successive additional periods of thirty-six (36) months each (each such extension is referred to as an “Extension Term” of the Employment Term) in the event that written notice of termination hereof is not given by one party hereof to the other at least twenty-four (24) months prior to the end of the Employment Term or the then applicable Extension Term, as the case may be; provided that the Employment Term shall terminate prior to such date: (1) upon Employee’s death or permanent disability or incapacity (as determined by the Board in its good faith judgment) or (2) upon the mutual agreement of the Employer and Employee.

 

(b)         Termination for Cause, Voluntary Termination, Termination at End of Term. If Employee is terminated by the Employer at the end of the Initial Term or any Extension Term by timely and proper notice pursuant to Section 2.0(a) above, or at any time by the Employer for Cause, or voluntarily by the Employee other than for Good Reason, Employee shall be entitled only to his Base Salary through the date of termination of this Agreement and shall not be entitled to any further Base Salary or any applicable bonus, benefits or other compensation for that year or any future year, except as may be provided in an applicable benefit plan or program, or to any severance compensation of any kind, nature or amount.

 

(c)         Involuntary Termination Without Cause or Good Reason Termination. If Employee’s employment with the Employer is terminated by the Employer without Cause (other than by reason of the Employer’s election and timely notice to terminate Employee’s employment at the end of the Initial Term or any Extension Term in accordance with Section 2.0(a) hereof or by reason of death or disability) or Employee terminates his employment with the Employer or its successor for Good Reason, Employee shall, subject to satisfaction of the Release Condition described in Section 2.0(e) below, be entitled to:

 

(i) all previously earned and accrued but unpaid Base Salary plus Commissions up to the date of such termination; and

 

(ii) severance pay in an amount equal to the Base Salary paid for the balance of the Initial Term or Extension Term, whichever is later, in equal installments on the dates on which Employee’s Base Salary would otherwise have been paid in accordance with the Employer’s normal payroll dates in effect as of the date of Employee’s termination of employment as if Employee’s employment had continued for such period, provided that the delay of the payment of any such amounts pending satisfaction of the Release Condition described in Section 2.0(e) below shall be accumulated and paid on the first of the Employer’s first such scheduled payroll date following satisfaction of the Release Condition; and

 

(iii) a lump sum payment equal to the mean of Commission payments for the prior thirty-six months plus payments under any short-term incentive or annual bonus plan maintained by the Employer during each of the three calendar years prior to the year in which such termination occurs (or fewer calendar years if the Employee has not been a participant in the Employer’s annual or short-term incentive bonus plan for the entirety of each such three prior calendar years), payable as soon as practicable following the Employee’s termination of employment, provided that in no event shall such lump-sum payment occur later than March 15 of the year following the year in which such termination occurs; and

 

(iv) for the 12 month period following the Employee’s termination of employment or such shorter period of time that Employee or any of Employee’s dependents is eligible for and elects COBRA continuation coverage (in accordance with Section 4980B of the Code), Employee’s cost of coverage shall be the employee contribution rate that would have applied if Employee had remained in active employment with the Employer during such period, provided that any amounts payable to Employee in connection with this Section 2.0(c) shall be paid on an after tax basis on the first regularly scheduled payroll date of each month for which such amount is payable; and

 

(v)         the annual bonus that is paid to employees who have worked for Employer for more than fifteen-years, provided Employer is profitable.

 

All payments shall be subject to deductions for customary withholdings, including, without limitation, federal and state withholding taxes and payroll taxes.

 

(d)         Change in Control Termination. Notwithstanding Section 2.0(c) above, if prior to but in connection with a Change in Control or during the 18 month period following a Change in Control: (i) Employee’s employment with the Employer or its successor is terminated by the Employer or its successor without Cause (other than by reason of the Employer’s or its successors election and timely notice to terminate Employee’s employment at the end of the Initial Term or any Extension Term in accordance with Section 2.0(a) hereof or by reason of death or disability); or (ii) Employee terminates his employment with the Employer or its successor for Good Reason, Employee shall, subject to satisfaction of the Release Condition described in Section 2.0(e) below, be entitled to:

 

(A) all previously earned and accrued but unpaid Base Salary and Commissions up to the date of such termination;

 

(B) severance pay in an amount equal to thirty-six (36) months of Base Salary plus the average commission paid for the prior thirty-six (36) months paid in equal installments on the dates on which Employee’s Base Salary would otherwise have been paid in accordance with the Employer’s normal payroll dates in effect as of the date of Employee’s termination of employment as if Employee’s employment had continued for such period, provided that the delay of the payment of any such amounts pending satisfaction of the Release Condition described in Section 2.0(e) below shall be accumulated and paid on the first of the Employer’s first such scheduled payroll date following satisfaction of the Release Condition;

 

(C) a lump sum payment equal to one and one-half times the mean of payments under any short-term incentive or annual bonus plan maintained by the Employer during each of the three calendar years prior to the year in which such termination occurs (or fewer calendar years if the Employee has not been a participant in the Employer’s annual or short-term incentive bonus plan for the entirety of each such three prior calendar years), payable as soon as practicable following the Employee’s termination of employment, provided that in no event shall such lump-sum payment occur later than March 15 of the year following the year in which such termination occurs; and

 

(D) for such period of time that Employee or any of Employee’s dependents is eligible for and elects COBRA continuation coverage (in accordance with Section 4980B of the Code), Employee’s cost of coverage shall be the employee contribution rate that would have applied if Employee had remained in active employment with the Employer during such period, provided that any amounts payable to Employee in connection with this Section 2.0(d)(iv) shall be paid on an after tax basis on the first regularly scheduled payroll date of each month for which such amount is payable; and

 

(E)         the annual bonus that is paid to employees who have worked for Employer for more than fifteen-years, provided Employer is profitable.

 

All payments shall be subject to deductions for customary withholdings, including, without limitation, federal and state withholding taxes and payroll taxes.

 

(e)         Release Condition and Severance Forfeiture. Employee agrees that Employee shall be entitled to the amounts and benefits set forth in Sections 2.0(c)(i)-(iv) and 2.0(d)(A)-(E) only if: (i) Employee executes a release of all claims against the Employer (other than indemnity claims the Employee may have against the Employer that arise under the Employer’s by-laws or the D&O Insurance Policies) in such reasonable form as the Employer may reasonably prescribe, and Employee has not materially breached, as of the date of termination, obligations to maintain Confidential Information of the Employer, and (ii) such release becomes effective and irrevocable no later than 60 days following the date of the Employee’s termination of employment.

 

(f)         No Additional Severance. Employee hereby agrees that no severance compensation of any kind, nature or amount shall be payable to Employee, except as expressly set forth in this Section 2.0, and Employee hereby irrevocably waives any claim for any other severance compensation.

 

(g)         Death or Disability. The Employer’s obligation under this Agreement terminates on the last day of the month in which Employee’s death occurs or on the date as of which Employee first becomes entitled to receive disability benefits under the Employer’s long-term disability plan. The Employer shall pay to Employee or Employee’s estate all previously earned and accrued but unpaid Base Salary up to such date. Thereafter, Employee or his estate shall not be entitled to any further Base Salary, bonus, benefits or other compensation for that year or any subsequent year, except as may be provided in an applicable benefit plan or program.

 

 

 

 

3.0 Performance/ Non-Compete.

 

During the term of this Employment Agreement, Employee shall, in accordance with the orders and directions of the Board of Directors of Employer, perform such duties as the Officer of Employer as may be assigned to him from time to time. Employee agrees to devote at least three-fourths (75%) of all his working time and effort to the performance of his duties as the Director of Sales and Marketing of Employer in an efficient, faithful and businesslike manner. Employee shall have overall responsibility and authority for the aerospace business segment of Employer.

 

Employee further agrees that, during the term of this Agreement, he shall not be engaged, either directly or indirectly, in any manner or capacity, whether as an adviser, principal, agent, partner, officer, director, employee, member of an association, or otherwise, in any business or activity, or own beneficially or of record, five percent (5%) or more of the outstanding stock or class of equity securities in any corporation in competition with the business of Employer.

 

4.0 Compensation.

 

As compensation during the period of his employment under this Agreement, Employer shall pay to Employee as salary for his services, the minimum sums of $273,478.40 for the period of January 1, 2020 through December 31, 2020, payable weekly in accordance with Employer's normal payroll practices. Employer and Employee agree that Employee shall receive a salary increase of five percent (5%) per year for each year on January 1 of year for the Term of this Agreement and each year of any extension term.

 

Employee shall also have the right, on the same basis with other employees of Employer, to participate and receive benefits under and in accordance with the provisions of any Employee fringe benefit programs and shall be entitled to paid vacation and reimbursement for travel and entertainment expenses incurred in connection with his duties under this Agreement on the same basis as other employees of Employer. Employee shall be entitled to four weeks vacation each year which he may take one week or more at a time and be paid in accordance with the Employer’s payroll practices for such vacation. Employee shall also be entitled to the annual bonus that is paid to employees who have worked for Employer for more than fifteen-years, provided Employer is profitable. As Director of Sales and Marketing, Employee is also entitled to commissions (“Commission”) under the commission plan approved by the Chief Executive Officer of the Corporation.

 

In addition to the Base Salary, Employee shall be entitled to participate in the Employer’s Management Incentive Plan (the “Bonus Plan”) as administered by the Compensation Committee of the Board of Directors. If the Board or the Compensation Committee modifies such Bonus Plan during the Employment Term, Employee shall continue to participate at a level no lower than the highest level established for any officer of the Employer then at Employee’s level. At the discretion of the Board or the Compensation Committee, Employee may be offered from time to time the opportunity to participate in other bonus plans of the Employer in lieu of the Bonus Plan and, if Employee chooses to participate in such plan or plans.

 

Upon submission of statements, vouchers or other satisfactory evidence by Employee, Employer shall pay or reimburse him for all out-of-pocket expenses for entertainment, travel, meals, hotel accommodations, and the like, incurred by him in the interest of Employer's business or Employee’s function with the Employer’s business.

 

5.0 Inventions and Patents.

 

Employee agrees that all of his interests in any inventions, discoveries, improvements, developments, tools, machines, apparatus, appliances, designs, promotional ideas, practices, processes, formulae, methods, and new products or services useful in or related to the business in which Employer or any subsidiary or affiliate of Employer may at any time be engaged, whether patentable, copyrightable or otherwise made, discovered, developed, or secured by him, either solely or jointly with others, during the term of this Employment Agreement, shall be the property of Employer and will be disclosed promptly and fully to Employer. At the request of Employer at any time or from time to time during or after the term of this Employment Agreement, but at the expense of the Employer, Employee will make application in due form for Letters Patent, copyrights or trademarks, domestic and foreign, and will assign to Employer or persons designated by Employer all of his right, title and interest in and to the Letters Patent, copyrights and trademarks and the applications therefore. Employee will, at any time during the term of this Employment Agreement or thereafter, execute any and all instruments and documents and do such further reasonable acts and things, at the expense of Employer, which Employer may deem desirable in connection with such applications for Letters Patents, copyrights or trademarks, or in order to establish and perfect in Employer or persons designated by Employer the entire right, title and interest in and to said Letters Patents, copyrights or trademarks and the property rights and materials connected therewith.

 

Employee will not, directly or indirectly, without the Employer's prior written consent, solicit to cease to work with the Employer or any of its subsidiaries or affiliates, any person who is at the time of such activity, or who was within the six (6) month period preceding such activity, an employee of the Employer or any of its subsidiaries or affiliates at the level of director or any more senior level, or encourage any consultant to cease or diminish his or her work with the Employer or any of its subsidiaries or affiliates; and

 

Employee will not directly cause any supplier of the Employer or any of its subsidiaries or affiliates to cease doing business with the Employer or subsidiary or affiliate.

 

6.0 Business Disclosures.

 

Employee shall not, without the written consent of Employer, at any time disclose to anyone other than officers or employees of Employer, or make use of those manufacturing methods, processes, techniques, trade secrets, products, research, or customer lists obtained while in the employ of Employer which shall not be generally known to the public or recognized as standard practices. Upon leaving the employ of Employer, Employee shall not take, without the consent of the Employer, any drawing, blueprint or other reproduction, customer list or confidential data.

 

7.0 Assignment.

 

This Employment Agreement is personal in nature, and Employee shall not assign or transfer any of his obligations under this Employment Agreement. Any such attempt of assignment shall be null and void and shall constitute a breach of the Employment Agreement. In the event Employer shall at any time be merged or substantially all of its assets shall be acquired, this Agreement shall continue in full force and effect, and Employee shall render the services provided for herein to such successor.

 

8.0 Change in Control Restrictions.

 

 

(a)         In the event any payment(s) or the value of any benefit(s) received or to be received by Employee in connection with Employee’s termination of employment or contingent upon a change in control (whether received or to be received pursuant to the terms of this Agreement or of any other plan, arrangement or agreement of the Employer, its successors, any person whose actions result in a change in control, or any person affiliated with any of them (or which, as a result of the completion of the transaction(s) causing a change in control, will become affiliated with any of them) (collectively, the “Payments”)), are determined, under the provisions of Section 8.0(c) below, to be subject to an excise tax imposed by Code Section 4999 (any such excise tax, together with any interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), as determined in this Section 8.0(a), then the Employer shall reduce the aggregate amount of the Payments payable to the Employee such that the value of such Payments (determined in accordance with Section 280G of the Code or any successor provision thereto) are, after such reduction, no greater than 95% of the Employee’s “base amount” as of the date of such change in control and such that no Excise Tax shall be payable by the Employee, and the Payments shall not cease to be deductible by the Employer by reason of Section 280G of the Code (or any successor provision thereto).

 

(b)         If there is a determination that the Payments payable to Employee must be reduced pursuant to the immediately preceding paragraph, the Employer shall promptly give Employee notice to that effect and a copy of the detailed calculation thereof and of the amount to be reduced. Employee may then elect which and how much of the Payments shall be eliminated or reduced as long as: (i) the first such Payments to be reduced are not considered “deferred compensation” within the meaning of Code Section 409A (if any); (ii) if Payments described in (i) of this subsection are exhausted and additional reductions are necessary, any cash Payments described in this Agreement not previously reduced are reduced next; and (iii) after such election the aggregate present value of the Payments equals the largest amount that would both: (A) not cause any Excise Tax to be payable by Employee; and (B) not cause any Payments to become nondeductible by the Employer by reason of Section 280G of the Code (or any successor provision thereto). Employee shall advise the Employer in writing of Employee’s election within ten (10) days of Employee’s receipt of such notice from the Employer. Notwithstanding the foregoing, if no election is made by Employee within the ten-day period, the Employer may elect which and how much of the Payments shall be eliminated or reduced as long: (i) the first such payments to be reduced are not considered “deferred compensation” within the meaning of Section 409A of the Code (if any); (ii) if Payments described in (i) of this subsection are exhausted and additional reductions are necessary, any cash Payments described in this Agreement not previously reduced are reduced next; and (iii) after such election the aggregate present value of the Payments equals the largest amount that would both: (A) not cause any Excise Tax to be payable by Employee; and (B) not cause any Payments to become nondeductible by the Employer by reason of Section 280G of the Code (or any successor provision thereto). For purposes of this paragraph, present value shall be determined in accordance with Code Section 280G(d)(4).

 

(c)         All determinations required to be made under this Section 8.0, including whether the aggregate amount of Payments shall be reduced, and the assumptions to be utilized in arriving at such determinations, unless otherwise set forth in this Agreement, shall be made by a nationally recognized certified public accounting firm selected by the Employer and reasonably acceptable to Employee (the “Accounting Firm”). The Employer shall cause the Accounting Firm to provide detailed supporting calculations to the Employer and Employee within fifteen (15) business days after notice is given by Employee to the Employer that any or all of the Payments have occurred, or such earlier time as is requested by the Employer. Within two (2) business days after such notice is given to the Employer, the Employer shall instruct the Accounting Firm to timely provide the data required by this Section 8.0(c) to Employee. All fees and expenses of the Accounting Firm shall be paid in full by the Employer. If the Accounting Firm determines that there is substantial authority (within the meaning of Section 6662 of the Code) that no Excise Tax is payable by Employee, the Employer shall take commercially reasonable action so that the Accounting Firm shall furnish Employee with a written opinion that failure to disclose or report the Excise Tax on Employee’s federal income tax return will not constitute a substantial understatement of tax or be reasonably likely to result in the imposition of a negligence or any other penalty. Any determination by the Accounting Firm shall be binding upon the Employer and Employee in the absence of material mathematical or legal error.

 

9.0 Disability.

 

In the event Employee shall become unable to perform his duties under this Agreement for a period exceeding thirty (30) days on account of sickness or injury, he shall be entitled to continue to receive salary and benefits for a period of twelve (12) months from and after the date on which such Employee shall become unable to perform his duties under this Agreement on account of sickness or injury, less any amounts that he receives pursuant to any disability insurance contract which may be in force with respect to him. Thereafter, this Agreement shall continue in full force and effect, but no further salary or other payments shall be payable to Employee under this Agreement until such time as he resumes his duties pursuant to this Agreement.

 

10.0 Notices.

 

All notices to be given by either party to this Employment Agreement to the other shall be in writing. Any notice to be given to Employee shall be given by depositing such notice in the United States mails, postage prepaid, addressed to Employee at 15125 Melrose, Overland Park, KS 66221. Any notice to be given to Employer shall be given by depositing such notice in the United States mails, postage prepaid, addressed to Employer at 19920 W. 161st Street, Olathe, KS 66062. Either party may from time to time change its address for further communication by giving notice in the manner prescribed to the other party.

 

11.0 Entire Agreement.

 

This Employment Agreement constitutes the entire understanding between parties with respect to the subject matter and supersedes all negotiations, prior discussions and preliminary agreements. This Employment Agreement may not be amended, except pursuant to a writing executed by the parties.

 

12.0 Captions.

 

The captions of the sections of this Employment Agreement are for convenience only and shall not be considered or referred to in resolving questions of construction.

 

13.0 Successors.

 

This Employment Agreement shall be binding upon and shall inure to the benefit of the heirs, executors, administrators, assigns and successors of the parties.

 

IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the day and year first written above.

 

BUTLER NATIONAL CORPORATION

 

 

 

By _______________________________

Clark D. Stewart

President and CEO

 

 

EMPLOYEE

 

 

 

__________________________________

Joe A. PetersDocument

Exhibit 10.1
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of the 20th day of June, 2022 (the “Agreement”), is made by and between Casella Waste Systems, Inc., a Delaware corporation with an address of 25 Greens Hill Lane, Rutland, Vermont 05701 (“Company”), and Edmond Coletta, an individual and a resident of Rutland, Vermont (“Employee”).  This Agreement shall be effective on July 1, 2022 (the “Effective Date”), provided that Employee remains employed by Company as of the Effective Date. Until the Effective Date, the Employment Agreement between Company and Employee dated as of September 14, 2012 and amended as of May 27, 2016 (the “Original Agreement”) will remain in full force and effect and continue to govern Employee’s employment with the Company. 
WHEREAS, Company is in the business of providing solid waste management, disposal, resource recovery and recycling services and related businesses; 
WHEREAS, Company and Employee are parties to the Original Agreement; and
WHEREAS, Company and Employee are mutually desirous to enter into this Agreement to amend and restate the Original Agreement in its entirety as of the Effective Date and that Company continue to employ Employee, and Employee accepts such continued 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, Company and Employee, intending to be legally bound, do hereby agree as follows:
1.Duties.
1.1    During the Agreement Term (as defined below), Employee is the President and Chief Financial Officer (or such other and comparable titles and positions as shall be given Employee by the Chief Executive Officer of Company), and shall faithfully perform for Company the duties of said office. 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. Employee shall report to the Chief Executive Officer of Company. Employee shall devote substantially all of his business time and effort to the performance of his duties hereunder, shall use all reasonable efforts to advance the best interests of Company and shall not engage in outside business activities which materially interfere with the performance of his duties hereunder; provided, however, that, subject to Sections 5 and 6 below, nothing in this Agreement shall preclude Employee from devoting reasonable periods required for participating in professional, educational, philanthropic, public interest, charitable, social or community activities.
The duties to be performed by Employee hereunder shall be performed primarily in Rutland, Vermont, subject to reasonable travel requirements on behalf of Company. 
2.    Agreement Term. Company hereby employs Employee, and Employee hereby accepts such employment, for an initial term (“Initial Term”) commencing as of the Effective Date and ending on the first anniversary of such date, unless sooner terminated in accordance with the provisions of Section 4. The term of
Page 1

this Agreement shall be automatically extended for an additional year at the expiration of the Initial Term or any succeeding term (such Initial Term and any succeeding terms being hereinafter referred to as “Agreement Term”), unless terminated by Company or Employee pursuant to the terms of Section 4 of this Agreement.
3.    Compensation and Expenses.
3.1.1    Base Salary. Subject to the next sentence of this Section 3.1.1, Employee shall be compensated at the annual rate of Four Hundred Sixty-Six Thousand Seven Hundred Ninety Six Dollars ($466,796) ("Base Salary"), payable on a bi-weekly basis in accordance with Company's standard payroll procedures. The Base Salary will be subject to annual reviews in accordance with Company policy.  Such reviews shall form the basis for any increase in Base Salary. 
3.2    Incentive Compensation. In addition to the Base Salary, on an annual basis, subject to annual reviews in accordance with Company policy, and also subject to the overall performance of Company, Employee shall be eligible but not guaranteed to receive a bonus ("Bonus") consisting of (i) a cash bonus of up to eighty five percent (85%) of Employee’s Base Salary, (ii) issuance of additional stock options, restricted stock units (“RSUs”) or performance-based units (“PSUs”) of Company or (iii) a combination of both cash and stock options, RSUs or PSUs in an amount to be determined prior to the conclusion of each fiscal year of Company during the Agreement Term in the sole discretion of the Compensation and Human Capital Committee of the Company’s Board of Directors (the "Compensation Committee").  Should a cash Bonus be payable to Employee, it is expected that it will be payable no later than 2 1⁄2 months after the end of the later of the Employer’s fiscal year or Employee’s taxable year during which the Bonus was earned.
3.3    Business Expenses.  Upon submission of appropriate invoices or vouchers, Company shall pay or reimburse Employee for all reasonable and necessary expenses actually incurred or paid by him during the Agreement Term in the performance of his duties hereunder.
3.4    Participation in Benefit Plans. Subject to each plan’s Employee eligibility and contribution requirement, Employee shall be entitled to continue to participate in any health benefit or other employee benefit plans available to 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 of Company, in each case to the extent that he may be eligible to do so under the applicable provisions of any such plan and applicable law. Following the termination of Employee hereunder or the expiration of the Severance Benefit Term (as defined in Section 4.4.1(g)), Employee and his eligible dependents shall be eligible for health care continuation under the Consolidated Omnibus Reconciliation Act of 1985 ("COBRA") to the extent authorized by law and at Employee’s own cost.
3.5    Vacation. Employee shall be entitled to four (4) weeks of annual vacation and shall be subject to the Company's standard holiday schedule. Company shall have no obligation to pay Employee for any unused vacation, except as provided in the Company Employee Handbook and by applicable law. 
3.6    Fringe Benefits and Perquisites. Employee shall be entitled to any fringe benefits and perquisites that are generally made available to senior executives of Company from time to time and that are approved by the Compensation Committee.  Employee shall be entitled to a monthly vehicle allowance of Five Hundred Dollars ($500) and usage of a Company fuel card.
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4.    Termination.  Employee's employment hereunder may be terminated only under the following circumstances:
4.1    Death.  Employee's employment hereunder shall terminate upon his death, in which event Company shall pay to 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 payable in a lump sum within sixty (60) days of the date of Employee’s death, (ii) the Acceleration Payment, payable in a lump sum within sixty (60) days of the date of Employee’s death, and (iii) all reasonable expenses actually incurred or paid by Employee in the performance of his duties hereunder prior to the date of death.
4.2    Disability. Company may terminate Employee's employment hereunder if (i) as a result of Employee's incapacity due to physical or mental illness, Employee shall have been absent from his duties hereunder on a full-time basis for an aggregate of one hundred eighty (180) consecutive or non-consecutive business days in any twelve (12) consecutive-month period and (ii) within ten (10) days after written notice of termination hereunder is given by Company, 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 Company based upon information supplied by a physician selected by Company or its insurers and reasonably acceptable to Employee or his legal representative. During any period that Employee fails to perform his duties hereunder as a result of incapacity due to physical or mental illness (the "Disability Period"), 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 Employee shall be reduced by the sum of the amounts, if any, paid to Employee during the Disability Period under any disability benefit plans of Company. If Employee is terminated pursuant to this Section 4.2, Company shall pay to Employee (or his legal representative):  (i) Severance, payable as described in Section 4.4.1(e), (ii) the Acceleration Payment, payable as described in Section 4.4.1(b), (iii) Severance Benefits for the Severance Benefit Term, and (iv) all reasonable expenses actually incurred or paid by Employee in the performance of his duties hereunder prior to the date of termination due to disability.
4.3    Termination by Company.
4.3.1    Termination by Company for Cause.  Company shall have "Cause" to terminate Employee's employment hereunder upon Employee (A) being convicted of a crime involving Company (other than pursuant to actions taken at the direction or with the approval of the Board), (B) having engaged in (1) willful misconduct which has a material adverse effect on Company, (2) willful or gross neglect or behavior which has a material adverse effect on 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 fifteen (15) days following written notice from Company specifying such breach.  In the event Employee's employment is terminated by Company for "Cause", Employee shall be entitled to continue to receive Base Salary accrued but unpaid and expenses incurred but not repaid to Employee, in each case only until the effective date of such termination.
4.3.2    Termination by Company other than for Cause.  In the event Employee's employment is terminated by Company other than for Cause, Employee shall be entitled to (i) Severance, payable as described in Section 4.4.1(e), (ii) the Acceleration Payment payable as described in Section 4.4.1(b), (iii) Severance Benefits for the Severance Benefit Term, and (iv)  the accelerated vesting at the time of termination of any stock options, RSUs or other equity grants (with respect to which payment, if any, also shall be made upon such vesting) issued by
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Company to Employee, provided that the accelerated vesting will only accelerate payment under clause (iv) where permitted by Section 409A (as defined below). 
4.4    Termination by Employee.
4.4.1    Definitions.  For purposes of this Agreement, the following terms shall have the respective meanings set forth below:
(a)    "Affiliate" means, with respect to Company, any entity directly or indirectly controlled, controlling or under common control with Company.
(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) any Bonus relating to the prior fiscal year which, as of the date of termination, had been determined by Company pursuant to Section 3.2 but not yet paid prior to the date of termination and (iii) any vacation accrued but unused prior to the date of termination.  The Acceleration Payment due under (i) shall be payable in a lump sum immediately upon Employee’s termination, and the Acceleration Payment due under (ii) and (iii) (the “Contingent AP Amounts”) shall be payable in a lump sum within sixty (60) days of the date of Employee’s termination,  subject, in the case of the Contingent AP Amounts only,  to Sections 11 and 20.  The Acceleration Payment due under (i) is not “deferred compensation” within the meaning of Section 409A (as defined below) and the Contingent AP Amounts are intended to, and shall be construed to, fit within the short-term deferral exception in Section 409A.
(c)    "Good Reason" means the occurrence of one or more of the following conditions: the assignment to Employee of any duties inconsistent with his status as President of the Company, 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 third persons, a material diminution in Employee's base compensation, or a material change in the geographic location at which the employee must perform services for the Company; provided that Employee has given Company notice within ninety (90) days of the initial existence of the condition, Company has not remedied the condition within thirty (30) days after receiving such notice and Employee actually terminates within one hundred eighty (180) days of the initial existence of such condition. 
(d)    Intentionally Omitted.
(e)    "Severance" means the sum of:  (i) two (2) times the highest annual Base Salary that was paid to Employee at any time prior to termination by Employee for Good Reason or prior to when Employee’s employment is terminated by Company other than for “Cause” or by reason of Death or Disability; and (ii) two (2) times Employee’s target annual cash incentive compensation opportunity under the Company’s Non-Equity Incentive Plan (or such successor plan as may be in effect from time to time) for the fiscal year in which termination occurs. Severance due under (i) shall be paid bi-weekly in accordance with Company payroll procedures, commencing within sixty (60) days of Employee’s termination, and Severance due under (ii) shall be paid in a lump sum within sixty (60) days of the date of Employee’s termination, in all cases subject to Section 11 and, to the extent applicable, Section 20, and less applicable Employee payroll deductions.  Severance payable under clause (i) is intended to, and shall be construed to, fit within the short-term deferral and separation pay exceptions to Section 409A to the maximum permissible extent and each installment
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payment thereof shall be treated as a separate payment.  Severance payable under clause (ii) is intended to, and shall be construed to, fit within the short-term deferral exception to Section 409A.
(f)    "Severance Benefits" means should Employee be eligible for and elect to receive continued  group medical and dental insurance through COBRA, the Company and Employee shall each continue to pay their respective portions of the premiums for such benefits as would be applicable to active and similarly situated employees of the Company.  The Severance Benefits are intended to, and shall be construed to, fit within the short-term deferral and separation pay exceptions to Section 409A to the maximum permissible extent and each installment thereof shall be treated as a separate payment for purposes of Section 409A.
(g)    “Severance Benefit Term” means two (2) years from the date Employee terminates his employment for Good Reason, or Employee’s employment is terminated by Company other than for Cause or by reason of Disability; provided however that Company’s obligation to provide Severance Benefits (i) shall terminate upon Employee becoming eligible for coverage under the medical benefits program of a subsequent employer and (ii) shall not be construed to extend any period of continuation coverage (e.g., COBRA) required by U.S. federal law.
(h)    “Section 409A” means Section 409A of the Internal Revenue Code of 1986, and the regulations issued thereunder, as each may be amended from time to time.
4.4.2    Termination by Employee for Good Reason.  At the election of Employee, Employee may terminate his employment for Good Reason immediately upon written notice to Company; provided, however, that Employee must make such election to terminate his employment for Good Reason within ninety (90) days of his becoming aware of the occurrence of such event that qualifies as Good Reason under Section 4.4.1(c) of this Agreement. If during the Agreement Term Employee's employment is terminated by Employee for Good Reason, Employee shall be entitled to receive from Company (i) Severance, payable as described in Section 4.4.1(e), (ii)  the Acceleration Payment payable as described in Section 4.4.1(b), (iii) Severance Benefits for the Severance Benefit Term and (iv) the accelerated vesting at the time of termination of any stock options or other equity grants (such as RSUs or PSUs, with respect to which payment also shall be made upon such vesting) issued by Company to Employee, provided that the accelerated vesting will only accelerate payment under clause (iv) where permitted by Section 409A.
4.4.3    Termination by Employee for other than Good Reason.  Upon forty five (45) days' prior written notice, Employee may terminate his employment with Company other than for Good Reason. If Employee voluntarily terminates his employment with Company other than for Good Reason, no further payment shall be due Employee pursuant to Sections 3 or 4 above (other than payments for accrued and unpaid Base Salary and expenses incurred but not previously paid to Employee, in each case prior to such termination), however the indemnification provisions pursuant to Section 10 hereof shall survive any termination of employment of Employee hereunder.  
4.5    Effect of Termination on Certain Obligations. No termination of the employment of Employee by either Company or Employee, whether for Good Reason or without Cause or for Cause, shall terminate, affect or impair any of the obligations or rights of the parties set forth in Sections 4, 5, 6, 7, 8, 10 and 21 of this Agreement, all of which obligations and rights shall survive any termination of employment of Employee hereunder.
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5.    Covenant Not to Disclose Confidential Information.  During the Agreement Term, and for a period of two (2) years thereafter, Employee acknowledges that during the course of his affiliation with Company he has or will have access to and knowledge of certain information and data which Company considers confidential and/or proprietary and the release of such information or data to unauthorized persons would be extremely detrimental to Company. As a consequence, Employee hereby agrees and acknowledges that he owes a duty to Company not to disclose, and agrees that without the prior written consent of Company, at any time, either during or after his employment with 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 Employee is acting in good faith and in the best interest of Company. Employee will use all reasonable 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. Employee will return to Company all Confidential Information in Employee's possession or under Employee's control when the duties of Employee no longer require Employee's possession thereof, or whenever Company shall so request, and in any event will promptly return all such Confidential Information if Employee's employment with 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 Company whether communication is verbal or in writing that is not known generally to the industry in which Company is or may be engaged, including without limitation, any and all trade secrets, proprietary data and information relating to Company's business and products, intellectual property, patents, or copyrightable works, 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 Company advises Employee should be treated as Confidential Information.
6.    Covenant Not to Compete and Non-Solicitation and Non-Disparagement. Employee acknowledges that he, at the expense of Company, has been and will be specially trained in the business of Company, has established and will continue to establish favorable relations with the customers, clients and accounts of Company and will have access to trade secrets of Company. Therefore, in consideration of the compensation paid Employee hereunder, and of such training and relations and to further protect trade secrets, directly or indirectly, of Company, Employee agrees that during the term of his employment by Company, and for a period of one (1) year 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 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 one hundred (100) miles of any facility of Company during the term of Employee's employment,  by Company, which is engaged, directly or indirectly, in (i) the solid waste processing, disposal and management business, (ii) the utilization of recyclable materials business or (iii) any other business Company is engaged in or proposes to engage in on the date this Agreement, or subsequently, at the date of termination of this Agreement, including, without limitation, businesses in the nature of, or relating to, sustainability programs, waste reduction, the creation of power or fuels out of waste, landfill gas to energy or gasification businesses, waste water treatment facilities (the businesses described in clauses (a)(i), (ii) and (iii) are collectively referred to as the "Competitive Businesses"); provided, however, that notwithstanding the above, Employee may own, directly or indirectly, solely as an investment, securities of any such person
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which are traded on any national securities exchange or NASDAQ if 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 Company, or were prospects to be customers of Company, within the twelve (12) months prior to termination) or accounts of 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 Company to leave such employ or service. 
Furthermore, the terms of this covenant not to compete shall be enforceable against Employee only to the extent that after termination of Employee's employment, Company continues to pay Employee any and all Severance Benefits, Severance  and the Acceleration Payment 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.    Assignment of Inventions and Work.  Employee hereby agrees to disclose in writing to Company any  Inventions or copyrightable Works, which are conceived, made, discovered, written or created by Employee, alone and/or in combination with others, during Employee’s employment with Company, and that Employee will, voluntarily and without additional consideration, assign Employee’s  rights and title to such Inventions or Works to Company.  This assignment of Inventions or Works relates only to Inventions or Works which are directly related to the businesses of Company.  
8.    Specific Performance.  Recognizing that irreparable damage will result to Company in the event of the breach or threatened breach of any of the foregoing covenants and assurances by Employee contained in Sections 5, 6 or 7 hereof, and that Company's remedies at law for any such breach or threatened breach will be inadequate, 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 Employee, and each and every person, firm or company acting in concert or participation with him, from the continuation of such breach.
9.    Potential Unenforceability of Any Provision. 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 Employee or Company, 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 Company (in the case of an Employee breach) or Employee (in the case of a Company breach) 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.
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10.    Indemnification.  Company agrees that, except as limited by Company’s Certificate of Incorporation or By-Laws (as either or both may be amended from time to time), or applicable law, Company shall indemnify Employee (and promptly advance expenses as may be required) to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent as applicable law may thereafter from time to time permit.  Employee shall be entitled to this indemnification if by reason of his employment or by any reason of anything done or not done by Employee in any such capacity he is or is threatened to be made, a party to any threatened, pending, or completed Proceeding (as defined herein).  Employee will be indemnified to the full extent permitted by applicable law against expenses, judgments, penalties, fines and amounts paid in settlement (including all interest assessments and other charges paid or payable in connection with or in respect of such expenses, judgments, fines, penalties or amounts paid in settlement) actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of Company, and, with respect to any criminal Proceeding, had no reasonable cause to believe his conduct was unlawful.  “Proceeding” includes any threatened, pending, or completed claim, action, suit, arbitration, alternate dispute resolution mechanism, administrative hearing, appeal, inquiry or investigation, whether civil, criminal, administrative, arbitrative, investigative, or other (whether instituted by Company or any other party), or any inquiry or investigation that Employee in good faith believes might lead to the institution of any such action, suit or proceeding whether civil, criminal, administrative, investigative, or other, including any action, suit arbitration, alternate dispute resolution mechanism, administrative  hearing, appeal, or any inquiry or investigation pending on or prior to the date hereof or initiated by Employee to enforce his rights under this indemnification section of this Agreement. This indemnification and the advancement of expenses shall include attorney’s fees and other reasonable expenses incurred by Employee pursuant to this clause. In the event that there is a potential conflict of interest between Employee and Company, Employee may select his own counsel (and still be entitled to the benefit of this indemnification).   Employee must submit written requests for payment pursuant to the Section 10 within one hundred twenty (120) days after Employee incurs any expenses or other amounts under this Section 10.  Payment or reimbursement shall be governed by Section 20.  This indemnification clause shall survive the termination of this Agreement. 
11.    General Release.  Employee recognizes, understands and agrees that the provision of this Agreement by Company, and its terms of employment, as well as its terms of Severance, Severance Benefits and Contingent AP Amounts are generous and extraordinary, and that in consideration thereof, Employee agrees in this Agreement that in advance of and as a condition to the receipt of such Severance Benefits, Severance and Contingent AP Amount, if any, Employee will execute a General Release in a form mutually satisfactory to Company and Employee, but in any case, including appropriate releases for all claims or demands Employee may have against Company, including, without limitation, claims or demands for violation of any laws, rules, regulations, orders or decrees established to protect the rights of employees pursuant to anti-discrimination laws and including all protections required by law to be afforded to Employee relative to the execution and revocation of such a General Release.  Employee understands and agrees that no Severance Benefits, Severance or Contingent AP Amounts will be made to Employee unless, and until Employee and Company execute such a General Release, and Employee’s rights to revoke such General Release have expired or have been extinguished as a matter of law.  Such General Release must be executed and submitted to Company within sixty (60) days following termination of employment.  Payment of amounts exempt from Section 409A shall be made (or shall begin, as the case may be) immediately upon the expiration of the revocation period, as shall the payment of any amounts that constitute “deferred compensation” within the meaning of Section 409A (subject to any delay under Section 20 and also provided that if the sixty (60) day period ends in the calendar year subsequent to the 
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year containing the termination of employment, the payment of deferred compensation shall not be made or being earlier than the first business day in that subsequent year).
12.    Corporate Authority.  Company represents and warrants to Employee that (a) Company has all necessary power and authority to enter into, and be bound by the terms of, this Agreement, (b) the execution, delivery, and performance of the undertakings contemplated by the Agreement have been duly authorized by Company, and (c) this Agreement shall be a legal, valid and binding obligation of Company, enforceable against Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the enforcement of creditors rights generally. 
13.    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 Company:
Casella Waste Systems, Inc. 
25 Greens Hill Lane 
Rutland, VT 05701 
Attention: Senior Vice President and General Counsel
(b)If to Employee:
Edmond Coletta
240 Grove Street
Rutland, VT 05701
The addresses of either party hereto above may be changed by written notice to the other party.
14.    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 anyone 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.
15.    Benefit and Binding Effect. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of Company, but shall be personal to and not assignable by Employee. The obligations of Company hereunder are personal to Employee or where applicable to his spouse or estate, and shall be continued only so long as Employee shall be personally discharging his duties hereunder. Company may assign its rights, together with its obligations, to any corporation which is a direct or indirect wholly-owned subsidiary of Company; provided, however, that Company shall not be released from its obligations hereunder without the prior written consent of Employee, which consent shall not be unreasonably withheld.
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16.    GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF VERMONT REGARDLESS OF THE LAWS THAT MIGHT BE APPLICABLE UNDER PRINCIPLES OF CONFLICTS OF LAW.
17.    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.
18.    Headings.  The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.
19.    Entire Agreement. This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof, superseding all negotiations, prior discussions and preliminary agreements. No subsequent modifications may be made to this Agreement except by signed writing of the parties.
20.    Compliance with Section 409A.  
Payments and benefits under this Agreement are intended to be exempt from Section 409A to the maximum possible extent and, to the extent not exempt, are intended to comply with the requirements of Section 409A.  The provisions of this Agreement shall be construed in a manner consistent with such intent.   
With respect to any “deferred compensation” within the meaning of Section 409A that is payable or commences to be payable under this Agreement solely by reason of Employee’s termination of employment, such amount shall be payable or commence to be payable as soon as, and no later than,  Employee experiences a “separation from service” as defined in Section 409A, subject to Section 11 of the Agreement and subject to the six-month delay described below, if applicable.  In addition, nothing in the Agreement shall require Company to, and Company shall not, accelerate the payment of any amount that constitutes “deferred compensation” except to the extent permitted under Section 409A.
If Employee is a “Specified Employee” within the meaning of Section 409A at the time his employment terminates and any amount payable to Employee by virtue of his separation from service constitutes “deferred compensation” within the meaning of Section 409A, any such amounts that otherwise would be payable during the first six months following separation from service shall be delayed and accumulated for a period of six months and paid in a lump sum on the first day of the seventh month.  Amounts exempt from Section 409A shall not be so delayed.  The Severance and Severance Benefits described in Section 4.4.1 of the Agreement are intended to, and shall be construed to, fit within the short-term deferral and separation pay exceptions to Section 409A to the maximum permissible extent and each installment thereof shall be treated as a separate payment for such purposes.
Any reimbursements or in-kind benefits provided to Employee shall be administered in accordance with Section 409A, such that:  (a) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during one year shall not affect the expenses eligible for reimbursement or the in-kind benefits provided in any other year; (b) reimbursement of eligible expenses shall be made on or before December 31 of the year following the year in which the expense was incurred; and (c) the right to reimbursement or in-kind benefits shall not be subject to liquidation or to exchange for another benefit.
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21.    AGREEMENT TO ARBITRATE
The undersigned parties agree that any disputes that may arise between them (including but not limited to any controversies or claims arising out of or relating to this Agreement or any alleged breach thereof, and any dispute over the interpretation or scope of this arbitration clause) shall be settled by arbitration by a single arbitrator agreed to by the parties, or if one cannot be agreed to by the parties, then by a three (3) person arbitration panel which is selected by the party of the first party, the second member chosen by the party of the second party, and the third member being selected by the first two arbitrators as previously selected by the parties.  The arbitrator(s) shall administer the arbitration in accordance with the American Arbitration Association, Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. No party shall be entitled to punitive, consequential or treble damages.  The arbitrator(s) selection process shall be concluded by the parties within sixty (60) days of a party’s Notice of Arbitration.
ACKNOWLEDGMENT OF ARBITRATION PURSUANT TO 12 V.S.A. § 5651 et seq. THE PARTIES HERETO ACKNOWLEDGE THAT THIS DOCUMENT CONTAINS AN AGREEMENT TO ARBITRATE. AFTER SIGNING THIS DOCUMENT EACH PARTY UNDERSTANDS THAT HE WILL NOT BE ABLE TO BRING A LAWSUIT CONCERNING ANY DISPUTE THAT MAY ARISE WHICH IS COVERED BY THIS ARBITRATION AGREEMENT EXCEPT AS PROVIDED IN THIS PARAGRAPH OR UNLESS IT INVOLVES A QUESTION OF CONSTITUTIONAL LAW OR CIVIL RIGHTS. INSTEAD EACH PARTY HAS AGREED TO SUBMIT ANY SUCH DISPUTE TO AN IMPARTIAL ARBITRATOR.
IN WITNESS WHEREOF, all parties have set their hand and seal to this Agreement and Acknowledgement of Arbitration pursuant to 12 V .S.A. § 5651 et seq. as of the dates written below:

									
			EDMOND COLETTA
	Witness:	/s/ Shelley E. Sayward                         
	/s/ Edmond R. Coletta                           

	Date: 	06/20/2022	Date: 06/20/2022
			
			CASELLA WASTE SYSTEMS, INC.
	Witness:	/s/ Shelley E. Sayward                         	By: /s/ John W. Casella

	Date:	06/20/2022	Name: John W. Casella
			Date: 06/20/2022

Page 11

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