PROMISSORY NOTE

$400,000                                                       South River, N.J.
                                                               May 27, 1999

     FOR  VALUE  RECEIVED,   and  intended  to  be  legally  bound  hereby,  IDM
ENVIRONMENTAL   CORP.   ("Maker")   promises  to  pay  to  the  order  of  LAURA
HUBERFELD/NAOMI  BODNER PARTNERSHIP  ("Payee"),  at its offices at 152 West 57th
Street,  54th  Floor,  New York,  New York  10019 or at such  place as Payee may
direct, the principal sum of Four Hundred Thousand Dollars ($400,000),  together
with interest upon the unpaid  balance from the date of this Note at the rate of
Six and 50/100  (6.50%)  percent  per annum.  The Maker  shall make one lump sum
payment of  principal  and  interest in the amount of  $404,772.60  on August 2,
1999.

     Acceleration  Upon Default.  The unpaid  principal sum of this Note and all
other sums owing hereunder may be declared  immediately due and payable by Payee
at its option if Maker makes an  assignment  for the benefit of  creditors or if
there is the  commencement  of a cause by or against Maker under any bankruptcy,
rehabilitation,  reorganization,  debt  adjustment,  liquidation or receivership
law, state or federal.

     Late Charge.  If any payment is not paid when due, the amount thereof shall
bear an  additional  late charge at a rate of five (5%)  percent per annum until
paid, but in no event shall such late charge exceed the maximum  permitted under
applicable law.

     No Right of  Set-Off.  This  Note  shall  not be  subject  to any  right of
set-off, counterclaim,  defense, abatement,  suspension, deferment or reduction,
and the Maker shall not have the right to be  released,  relieved or  discharged
from the  obligation  and  liability  under this Note for any reason  whatsoever
except by full timely payment in cash or by conversion of the debt arising under
this Note into registered securities of Maker pursuant to that certain agreement
made on the date  hereof by and  between  Maker and Payee (the  "Agreement")  to
which this Promissory Note is attached as Exhibit A thereto.

     Waiver of Notice.  Maker  hereby  waives any  requirement  of  presentment,
notice of  protest  and all  other  notices  in  connection  with the  delivery,
acceptance, performance, default or enforcement of this Note.

     No Waiver of Right or Remedy. No delay, failure or omission by the Payee or
any subsequent  holder in respect of the exercise of any right or remedy granted
to the Payee or other  holder or  allowed  to the Payee or other  holder by law,
herein, under said Note or otherwise,  shall constitute a waiver of the right to
exercise  the right or remedy at that or any future time or in the same or other
circumstance.

<PAGE>

     Notice.  Notices and demands hereunder on the Maker may be given in writing
at the address below:

                           IDM Environmental Corp.
                           396 Whitehead Avenue
                           South River, New Jersey 08882
                           Attention: Joel Freedman, President

     Subsequent  Certifications.  Each of the Maker and Payee,  within  five (5)
days after request by the other,  shall certify to such person as the requesting
party may  designate,  the amount of  principal,  interest or other sums payable
hereunder,  the date to which the same shall have been paid,  whether  this Note
has been modified or amended, whether any default exists under this Note, and in
the case of Maker,  whether any set-offs or defenses  exist against this Note or
the obligations of the Maker hereunder.

     Applicable Law. All rights and  obligations  hereunder shall be governed by
the laws of the State of New York.  This Note  shall be  binding  upon Maker and
inure to the benefit of Payee and its respective assigns and successors.

     Default.  In the event  Maker does not repay in full and on a timely  basis
the amount  then due and owing  under this Note,  then Maker shall be in default
under this Note and Payee  shall be  entitled  to all of its rights set forth in
the Agreement  including the right,  at the Payee's  option,  to either  enforce
payment of all amounts owing hereunder or to convert such amounts,  from time to
time,  into common  stock of the Maker in the manner set forth in Section 4.6 of
the Agreement.

     In the  event  that the Payee  elects to  exercise  its  conversion  rights
following an Event of Default,  the Payee's  right to convert  Promissory  Notes
shall be limited such that Payee at no time will be deemed to be the  beneficial
owner of more than 4.99% of the then  outstanding  common  stock of the Company.
Beneficial  ownership  shall be defined in accordance  with Rule 13d-3 under the
Securities  Exchange  Act of 1934.  The  opinion of  counsel to the Payee  shall
prevail in the event of any  dispute on the  calculation  of Payee's  beneficial
ownership.

     The terms and provisions of the Agreement are expressly incorporated herein
and made a part  hereof.  All terms not  defined  herein  shall have the meaning
ascribed thereto in the Agreement.

     Maker acknowledges that this Note has been delivered to Payee pursuant to a
commercial  transaction and that nothing herein  contained shall be construed as
constituting the Payee a partner of or joint venturer with the Maker.

     IN WITNESS WHEREOF, the undersigned has caused this Note to be executed and
delivered  by a duly  authorized  officer  of Maker as of the day and year first
above written.

                                         IDM ENVIRONMENTAL CORP.

                                         By:
                                            -------------------------
                                            JOEL FREEDMAN, President