NON-RECOURSE PROMISSORY NOTE

$5,400,000.00                                                  South River, N.J.
                                                            as of March 28, 1997


     WHEREAS, IDM ENVIRONMENTAL CORP., a New Jersey corporation  ("Payee"),  has
sold certain  equipment to CAG  TECHNOLOGIE  MANAGEMENT  CONSULTANTS  GREIFSWALD
GMBH, a corporation  formed and legally  existing  under the laws of the Federal
Republic of Germany ("Maker"),  for a total purchase price of U.S. $5,400,000.00
evidenced by that certain sale agreement by and between Payee and Maker dated as
of the date hereof (the "Sale Agreement"); and

     WHEREAS,  Maker has agreed to execute and deliver this  promissory  note to
Payee to  memorialize  the debt created by the sale of the Equipment  defined in
the Sale Agreement.

     NOW THEREFORE, FOR VALUE RECEIVED, and intended to be legally bound hereby,
CAG Technologie Management Consultants Greifswald GMBH ("Maker") promises to pay
to the  order  of IDM  ENVIRONMENTAL  CORP.  ("Payee"),  at its  offices  at 396
Whitehead  Avenue,  South River,  NJ 08882 or at such place as Payee may direct,
the  principal  sum  of  Five  Million  Four  Hundred   Thousand  U.S.   Dollars
(U.S.$5,400,000.00),  together with  interest  upon the unpaid  balance from the
date of this Note at the rate of five and  6,246/10,000  (5.6246%)  percent  per
annum.  The Maker shall make four (4) payments of principal  and interest as set
forth on Schedule 1 attached hereto. The Maker makes this Note on a non-recourse
basis in favor of Payee.

     Costs of Collection;  Late Charge.  If any  installment or other payment is
not paid when due, the amount thereof shall bear an additional  late charge at a
rate of five (5%)  percent per year until paid,  but in no event shall such late
charge exceed the maximum  permitted  under  applicable law. Maker agrees to pay
all costs of collection, including reasonable attorney's fees and disbursements,
if any payment hereunder is not made when due.

     No Right of  Set-Off.  This  Note  shall  not be  subject  to any  right of
set-off, counterclaim, defense, abatement, suspension, deferment or reduction.

     Lien to Secure Note. This Note is secured by a grant of a security interest
in the Equipment as set forth in that certain  Security  Agreement made by Maker
in favor of Payee dated as of the date  hereof.  Payee's  remedies  upon default
under this Note are limited to those set forth in the Security Agreement.

     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.


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     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.

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

             CAG Technologie Management Consultants
             Greifswald GMBH
             Koitenhager Landstrabe
             17941 Greifswald
             Attention: Alexander Lentes, President

     Prepayment.  The  principal  sum of this Note may be prepaid in whole or in
part at the option of the Maker,  without  premium  or  penalty,  at any time or
times prior to the date it is due. Any such  prepayment  shall be applied to the
installments  of such principal sum in the inverse order of the date thereof and
shall be accompanied by the payment of interest  accrued on the principal amount
of such prepayment to the date thereof.

     Subsequent Certifications. Each of the Maker and Payee, within fifteen (l5)
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  Jersey,  U.S.A.  This Note shall be  binding  upon
Maker  and  inure  to the  benefit  of  Payee  and its  respective  assigns  and
successors.

     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.


                                      CAG TECHNOLOGIE MANAGEMENT
                                      CONSULTANTS GREIFSWALD GMBH


                                      By:  /s/ Alexander Lentes
                                         ---------------------------------------
                                          Alexander Lentes, President


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                                   SCHEDULE 1



DATE                               AMOUNT (U.S.$)

September 28, 1997                   $1,501,864
December 28, 1997                    $1,406,948
March 28, 1998                       $1,387,966
June 28, 1998                        $1,363,983


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