2. Overview 2005 - 2010 Operation and Management Lease Agreement started September 19, 2005. County has received approximately $9.5 M in revenue: –$7.4 M in lease payments –$1.6 M in advance payments –$250 K for community projects –$125 K for the Academic and Workforce Development Center –$40 K in engineering –$110 K for the Scholarship Fund Agencies supported with Community Projects funds include: the SPCA, Friends of the Catherine Trail, Wings of Eagles, Arts of the Southern Tier, YMCA, Tanglewood Nature Center, Junior Achievement, Chemung ARC as well as various municipalities.

3. County has received approximately $9.4 M to cover expenses: –$5.11 M in payroll reimbursement –$4.2 M in other expense reimbursement –County has avoided millions in landfill expense related to cell development, equipment purchases and consulting/engineering expenses. County debt related to solid waste operations has almost been eliminated. $839,301 in 2005 Solid waste tax levy was eliminated. $1,257,000 in 2005. Casella has purchased several properties around the landfill under the property protection program and have maintained and preserved these properties.

4. Improved and built positive relationship with DEC. No violations since agreement and weekly site visit reports that are vastly improved since inception of the management lease. Management lease provided for a host community agreement with the Town of Chemung where the town receives $400,000 per year. Town also received $489,000 to retire the debt of the Chemung Fire District. There are various other compensation considerations aligned with the County/Casella management lease.

5. County entered negotiations with two fundamental principles that would remain unchanged: –Current boundaries or footprint of the landfill would not be changed. –Current tonnage levels outlined in the OML would not be increased.

7. Negotiation Issues Future Project Development Success Payment/Permitting Housekeeping Matters

8. Future Project Development Sewer Line - Section 6.2 $2.8 M Water Line - Section 6.3 $2.3 M Hydroponics Greenhouse - Section 6.4 $2.5 M Enhanced Construction/Demolition Recycling Facility - Section 6.5 $1.631 M Environmental Stewardship Education Center – Section 6.6 $.5 M Energy Projects – Section 7.2 a) & b) -Landfill gas transmission line $1.4 M -Gas to Energy Facility $2.5 M Career Development Center – Section 7.11 $.5 M

9. Future Projects That Will Remain Unchanged Career Development Center: Will continue to receive $25,000 per year.

10. Future Projects That Will Be Modified Enhanced C&D Recycling: Lake Street facility will not become enhanced facility. Upgrades to current facility exceed $1.6 million. Additional information will be covered in housekeeping. Environmental Stewardship Education Center: Casella purchased Hoffman House near landfill for $308,000 to use as center. Balance of funds will be contributed to Friends of the Chemung River Watershed - $20,000 per year. Landfill Gas to Energy Project: Plant will be located at landfill and will be constructed within two years after issuance of permit.

11. Future Projects That Will Be Eliminated Sewer/Water: Alternate infrastructure source Landfill Gas Transmission Line: Relocation of gas to energy facility makes line unnecessary. Hydroponics Greenhouse

12. Cash Payments to County for Future Project Elimination and Advance Payment Forgiveness Total payment - $11.1 million First payment of $5 M to the County by April 30, 2010 Second payment of $1 M to the County on or before May 15, 2011 Third payment of $1 M to the County on or before May 15, 2012 Fourth payment of $1 M to the County on or before May 15, 2013

13. Payment Advances: Section 7.1 d) The County exercised it rights pursuant to this section to receive an advance payment of $400,000 in calendar year 2006 and $1.2 M in calendar year 2007. Upon execution of the modified OML such advance shall be considered to be satisfied. Community Development Payment: Upon issuance of permit the County shall receive $100,000 a year for a 15 year period for a total payment of $1.5 million.

14. Permit Success Payments Modifications Section 4.1: County will fully cooperate with NEWSNY efforts to obtain an operating permit allowing an annual capacity of 417,000 tons effectively merging the OML provision that contemplated this as a two-step process. However, this provision shall not impact Section 7.1 b) of the OML. The parties further agree to modify Section 7.1 c) to provide for the following: –During the calendar year, of the issuance of the operating permit for 417,000 tons, NEWSNY shall pay the County an additional $630,000 (it’s contemplated that such issuance shall occur in calendar year 2013, no later that 2014). –During the second year, after issuance of such permit, NEWSNY shall pay the County no less than an additional $900,000 or up to $1,260,000 based on a $9.00 per ton calculating for every ton over 180,000 tons.

15. –During the third year, after issuance of such permit, NEWSNY shall pay the County no less than the previous years additional payment or up to $2,133,000 based on a $9.00 per ton calculation for every ton over 180,000 tons. – Parties agree to freeze for this 3 year period the tipping fee rate outlined in Section 8.1 a) of the OML. –During the fourth year, after issuance of such permit, NEWSNY agrees to payment consistent with Section 7.1 c) of the OML. –It is agreed that these payments shall not impact any other payments in the OML except as otherwise agreed to by the parties.

16. Housekeeping Matters Development of Advanced Recycling Program: Campaign roll out that will have at least a 20% recycling goal. Casella will retain County current share of recycling royalty and seek NYSERDA grants to implement. Parties agree to meet to discuss Drop-off Station Operation hours consistent with usage. The County reserves the right to maintain current hours of operation at its sole discretion. Parties agree to incorporate Advisory Committee payments into administrative payments. Modifications of OML must be completed and executed by April 30, 2010.