Document:

SIXTH AMENDMENT
                             TO DEBTOR-IN-POSSESSION
                      CREDIT AGREEMENT, LIMITED CONSENT AND
                         AMENDMENT TO SECURITY AGREEMENT

                  This SIXTH AMENDMENT TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT
AND LIMITED CONSENT (this "Amendment") is dated as of March 25, 2003 and entered
into by and among COVANTA ENERGY CORPORATION, a Delaware corporation
("Company"), and THE SUBSIDIARIES OF COMPANY LISTED ON THE SIGNATURE PAGES
HEREOF AS BORROWERS (collectively, Company and such Subsidiaries of Company are
"Borrowers" and each a "Borrower"), THE SUBSIDIARIES OF COMPANY LISTED ON THE
SIGNATURE PAGES HEREOF AS SUBSIDIARY GUARANTORS (collectively, the "Subsidiary
Guarantors"), THE LENDERS PARTY HERETO, BANK OF AMERICA, N.A., as Administrative
Agent for the Lenders ("Administrative Agent"), and DEUTSCHE BANK AG, NEW YORK
BRANCH, as Documentation Agent for the Lenders ("Documentation Agent"), and is
made with reference to that certain Debtor-in-Possession Credit Agreement dated
as of April 1, 2002, as amended by that certain First Amendment to
Debtor-in-Possession Credit Agreement and Security Agreement dated as of April
3, 2002, that certain Second Amendment to Debtor-in-Possession Credit Agreement
dated as of May 10, 2002, that certain Third Amendment and Limited Waiver to
Debtor-in-Possession Credit Agreement dated as of October 4, 2002, that certain
Fourth Amendment to Debtor-in-Possession Credit Agreement and Limited Consent
dated as of December 10, 2002 and that certain Fifth Amendment to
Debtor-in-Possession Credit Agreement dated as of December 18, 2002 (as so
amended, the "Credit Agreement"), by and among Borrowers, the financial
institutions parties thereto as Lenders, Documentation Agent and Administrative
Agent. Capitalized terms used herein without definition shall have the same
meanings herein as set forth in the Credit Agreement (as amended by this
Amendment).

                                    RECITALS

                  WHEREAS, Borrowers and the undersigned Lenders desire to
extend the termination date of the credit facilities under the Credit Agreement
and to make certain other amendments to the Credit Agreement and the Security
Agreement, subject to the terms and conditions set forth below;

                  NOW, THEREFORE, in consideration of the premises and
agreements, provisions and covenants herein contained, the parties hereto agree
as follows:

         SECTION 1. AMENDMENTS TO THE CREDIT AGREEMENT; LIMITED CONSENTS

         1.1  Provisions Relating to Defined Terms.

              A. Subsection 1.1 of the Credit Agreement is hereby amended by
deleting the definitions of "Advance Limit", "Budget Period", "Designated
Non-Material Asset Sales", "Minimum Cumulative Consolidated Operating Income
Schedule", "Monthly Budget" and "Tranche A Letter of Credit Sublimit" in their
entirety and inserting the following new definitions in the appropriate
alphabetical order:

                  "Advance Limit" means, with respect to Tranche A Loans (other
         than Tranche A Loans made pursuant to subsection 3.3B) as of any date
         of determination, the total amount of the Tranche A Commitments then in
         effect.

                  "Budget Period" means (i) as of any date of determination
         prior to the Sixth Amendment Effective Date, the period from Petition
         Date through and including the Stated Maturity Date (determined as of
         such date of determination), and (ii) as of any date of determination
         on or after the Sixth Amendment Effective Date, the period from January
         4, 2003 through and including the Stated Maturity Date (determined as
         of such date of determination).

                  "Designated Non-Material Asset Sales" means, collectively, the
         sales of the Subsidiaries, divisions or businesses of Company and its
         Subsidiaries (including the equity interests of certain Subsidiaries
         and their assets or of Company's or any of its Subsidiaries' interests
         in Projects) described on Annex A to the Third Amendment or Annex E to
         the Sixth Amendment.

                  "Minimum Cumulative Consolidated Operating Income Schedule"
         has the meaning assigned to that term in subsection 6.1(xxi); provided,
         however, that the Minimum Cumulative Consolidated Operating Income
         Schedule shall be deemed supplemented as of the Sixth Amendment
         Effective Date by the supplement thereto delivered to the Agents in
         accordance with Section 3.1 of the Sixth Amendment.

                  "Monthly Budget" means, (i) prior to the Sixth Amendment
         Effective Date, the consolidated cash flow projections delivered by
         Borrowers to Agents pursuant to subsection 4.1F for each month ending
         during the Budget Period, setting forth on a line-item basis monthly
         anticipated cash receipts and disbursements, provided that, upon
         approval by Agents or Requisite Lenders, as the case may be, of any
         monthly cash flow projections delivered pursuant to subsection
         6.1(xix)(a) or pursuant to clause (iv) of the definition of "Final
         Borrowing Order", the Monthly Budget described in this clause (i) shall
         be deemed supplemented and/or restated with respect to the following
         month and each month thereafter in the Budget Period by the projections
         for each such month covered by such approved cash flow projections; and
         (ii) on and after the Sixth Amendment Effective Date, the consolidated
         cash flow projections attached hereto as Exhibit XVI, setting forth on
         a line-item basis monthly anticipated cash receipts and disbursements.

                  "Overhead Report" means, with respect to any month, a report
         prepared by Company in the form attached hereto as Exhibit XVII
         reflecting overhead expenses of Company and its Subsidiaries for such
         month.

                  "Sixth Amendment" means the Sixth Amendment to
         Debtor-in-Possession Credit Agreement, Limited Consent and Amendment to
         Security Agreement by and among Borrowers, Agents and Lenders, dated as
         of March 25, 2003.

                  "Sixth Amendment Effective Date" has the meaning assigned to
         that term in Section 3 of the Sixth Amendment.

                  "Tranche A Letter of Credit Sublimit" means (i) prior to the
         Sixth Amendment Effective Date, $14,200,000; (ii) on and after the
         Sixth Amendment Effective Date, $12,200,000; and (iii) at any time
         after the Sixth Amendment Effective Date, such greater amount as may be
         approved in writing by Agents and Requisite Class Lenders of the Class
         of Tranche A Lenders (which approval shall be at the sole discretion of
         such Agents and Lenders and shall be evidenced by an amendment to this
         Agreement in form reasonably satisfactory to Agents and such Lenders)
         from time to time upon a request from Borrowers to increase such
         amount; provided, however, that no such increase shall cause the
         Tranche A Letter of Credit Sublimit to exceed the total amount of the
         Tranche A Commitments minus the outstanding amount of Tranche A Loans
         (excluding Tranche A Loans made pursuant to subsection 3.3B).

              B. The definition of "Stated Maturity Date" in subsection 1.1 of
the Credit Agreement is hereby amended by inserting at the end thereof the
following sentence:

         "On and as of the Sixth Amendment Effective Date, the Stated Maturity
         Date shall be deemed to have been extended to October 1, 2003 pursuant
         to the first proviso to the preceding sentence.".

         1.2  Provisions Relating to Tranche A Commitments and Tranche A
              Letter of Credit Sublimit.

              A. Subsection 2.1A(i) of the Credit Agreement is hereby further
amended by adding (immediately prior to the ";" immediately preceding the last
proviso to the second sentence thereof) the following new proviso:

         "; provided, further, however, that on the Sixth Amendment Effective
         Date, the aggregate amount of the Tranche A Commitments shall be
         further reduced by the amount necessary so that the aggregate amount of
         Tranche A Commitments on such date after giving effect to such
         reduction shall be $14,200,000, and the Tranche A Commitments of
         Lenders shall be ratably reduced to reflect such reduction in the
         aggregate amount of the Tranche A Commitments), with $2,000,000 of such
         reduction to be applied to the Tranche A Letter of Credit Sublimit then
         in effect, as set forth in clause (ii) of the definition of Tranche A
         Letter of Credit Sublimit".

              B. Subsection 2.4A(iv)(a) of the Credit Agreement is hereby
further amended by deleting the reference to "Tranche A Letter of Credit Usage"
contained in clause (2) thereof and substituting therefor "Tranche A Letter of
Credit Sublimit (or the Tranche A Letter of Credit Usage, in the case of any
Mandatory Payment from Net Asset Sale Proceeds the application of which under
this subsection 2.4A(iv)(a) would cause the Tranche A Commitments to be less
than the Tranche A Letter of Credit Sublimit)".

         1.3  Provisions Relating to Mandatory Prepayments.

              A. Subsection 2.4A(iii)(a) of the Credit Agreement is hereby
amended by deleting it in its entirety and substituting therefor the following:

              "(a) Prepayments and Reductions From Net Asset Sale Proceeds
         and Ottawa Disposition Proceeds. No later than two days after the date
         of receipt by Company or any of its Subsidiaries of any Net Asset Sale
         Proceeds in respect of any Asset Sale (other than any Approved Asset
         Sale to the extent the Net Asset Sale Proceeds from such Approved Asset
         Sale do not exceed $5,000,000) or any Ottawa Disposition Proceeds,
         Company shall make a Mandatory Payment in an aggregate amount equal to
         the amount of such Net Asset Sale Proceeds or Ottawa Disposition
         Proceeds, as the case may be.".

              B. Subsection 2.4A(iii)(h) of the Credit Agreement is hereby
amended by inserting immediately prior to the reference to "Net
Insurance/Condemnation Proceeds" contained therein the phrase "Ottawa
Disposition Proceeds,".

         1.4  Provisions Relating to Affirmative Covenants.

              A. Subsection 6.1 of the Credit Agreement is hereby amended by
deleting clause (b) of subsection 6.1(i) in its entirety and substituting
therefor the following:

         "(b) containing, in the case of reports delivered with respect to a
         month's end, (1) a Project-by-Project update on operational and legal
         developments which could reasonably be expected to be materially
         adverse in relation to such Project and (2) for each month's end
         commencing with March 31, 2003, an Overhead Report with respect to such
         month (with such Overhead Report for any month to be due on the 5th day
         of the second month following such month),".

              B. Subsection 6.1 of the Credit Agreement is hereby further
amended by deleting clause (a) of subsection 6.1(xix) in its entirety and
substituting therefor the following:

          "(a) a consolidated cash forecast for Company and its Subsidiaries, in
         form consistent with the Monthly Budget (with line items for projected
         cash receipts and cash expenditures corresponding to those in such
         Monthly Budget) then in effect and, solely with respect to periods
         prior to the Sixth Amendment Effective Date, in substance satisfactory
         to Agents (unless within 3 Business Days after receipt by Lenders of
         such cash forecast Requisite Lenders shall have notified Agents of
         their objection thereto, in which event any cash forecast submitted by
         Borrowers in lieu thereof shall be required to be satisfactory to
         Requisite Lenders), with monthly projections for the following month
         and each other month remaining in the Budget Period, together with an
         explanation of the material assumptions on which such projections are
         based, and".

         1.5  Provisions Relating to Negative Covenants.

              A. Subsection 7.6A of the Credit Agreement is hereby amended by
deleting it in its entirety and substituting therefor the following:

              "A. Post Sixth Amendment Expenditures Covenants. After the Sixth
Amendment Effective Date, Borrowers shall not, and shall not permit their
respective Subsidiaries to:

                   (i) make cash expenditures in any month of a type which
              would be classified under any of the disbursement line items in
              the Monthly Budget (other than the line items labeled "Debt
              Service", "Reorganization Cost" and "Tax Obligations") if (a)
              such expenditures would cause cumulative expenditures for such
              month and the two preceding months which would be classified
              under all of such line items to exceed, in the aggregate, 110% of
              the aggregate of the correlative amounts for such line items set
              forth in the Monthly Budget for such three-month period, or (b)
              such expenditures would cause cumulative expenditures for the
              period from the commencement of the Budget Period through such
              month which would be classified under all of such line items to
              exceed, in the aggregate, the sum of (x) the aggregate of the
              correlative amounts for such line items set forth in the Monthly
              Budget for such month and each preceding month and (y) 5% of the
              aggregate of the correlative amounts for such line items set
              forth in the Monthly Budget for the entire Budget Period; or

                   (ii) make cash expenditures in any month of a type which
              would be classified under any of the line items labeled "WTE Non
              Cap Ex Disbursements Non-Filed Entities", "IPP Non Cap Ex
              Disbursements Non-Filed Entities" or under the line item labeled
              "Disbursements" under the heading "International Operations", if
              such expenditures would cause cumulative expenditures for the
              period from the commencement of the Budget Period through such
              month which would be classified under all of such line items to
              exceed, in the aggregate, the sum of (a) the correlative amounts
              for such line item set forth in the Monthly Budget for such month
              and each preceding month and (b) for months prior to July 2003,
              $6,000,000, and for July 2003 and thereafter, $9,000,000; or

                   (iii) make cash expenditures in any month of a type which
              would be classified under the line item labeled "Total
              Maintenance Cap Ex" (under the heading "Domestic Operations"), if
              such expenditures would cause cumulative expenditures for the
              period from the commencement of the Budget Period through such
              month which would be classified under such line item to exceed
              the sum of (a) the cumulative total amount for such line item set
              forth in the Monthly Budget for such month and each preceding
              month and (b) $4,000,000; or

                   (iv) make cash expenditures in any month of a type which
              would be classified under the line item labeled "Disbursements"
              (under the heading "Investment Cap Ex") if the aggregate amount
              of such expenditures made from the commencement of the Budget
              Period would exceed the cumulative total amount for such line
              item set forth in the Monthly Budget for such month and each
              preceding month; or

                   (v) make cash expenditures in any month of a type which
              would be classified under the line item labeled "Non-Core
              Operations" (under the heading "Non-Core") if the aggregate
              amount of such expenditures made from the commencement of the
              Budget Period would exceed $3,500,000; or

                   (vi) make cash expenditures on or after the Sixth Amendment
              Effective Date in connection with the Senators Hockey Club or the
              Senators Lease (other than payments otherwise permitted under
              this subsection 7.6 that would be classified under the line item
              labeled "Professional Fees", under the heading "Reorganization
              Costs"); or

                   (vii) make cash expenditures in the Budget Period of a type
              which would not be classified under any of the line items
              reflected in the Monthly Budget, notwithstanding any other more
              permissive provision of this Agreement.

              For purposes of this Agreement, whether or not a particular
         expenditure shall or would be classified under a particular line item
         of the Monthly Budget shall be determined in a manner consistent with
         Company's classification of expenditures of the same type as such
         expenditure in preparing the Monthly Budget (as defined in clause (ii)
         of the definition of "Monthly Budget").".

              B. Subsection 7.7(i) of the Credit Agreement is hereby further
amended by (i) adding immediately after the "(i)" at the beginning thereof
"(a)", and (ii) adding immediately after the ";" at the end thereof the
following:

         "and (b) from time to time after the Sixth Amendment Effective Date, if
         Company determines in its reasonable judgment that such transactions
         are in the best interests of Borrowers and are not materially adverse
         to the interests of the Lenders, Company and its Subsidiaries may, so
         long as no Event of Default shall have occurred and be continuing,
         liquidate or dissolve any Foreign Subsidiary or other Person that is
         not incorporated or organized under the laws of the United States of
         America, any state thereof or the District of Columbia and is owned in
         part by Company or any of its Subsidiaries (any such Foreign Subsidiary
         or other Person being a "Foreign Owned Entity"), or sell or convey the
         Capital Stock of such Foreign Owned Entity to a Subsidiary of Company
         other than the Subsidiary owning such Foreign Owned Entity on the Sixth
         Amendment Effective Date, or consummate other restructuring or
         combination transactions with respect to Foreign Owned Entities, so
         long as in each case such transactions shall effectively reduce U.S.
         tax obligations on the income earned and/or repatriated by Foreign
         Owned Entities (any such transaction being referred to herein as a "Tax
         Restructuring"); and (c) from time to time after the Sixth Amendment
         Effective Date, if Company determines in its reasonable judgment that
         such transactions shall be effective to reduce its expenses, are in the
         best interests of Borrowers and are not materially adverse to the
         interests of the Lenders, Company and its Subsidiaries may dissolve any
         Subsidiary that holds substantially no assets (other than claims
         against, or Securities of, directly or indirectly wholly owned
         Subsidiaries), is engaged in substantially no operations and with
         respect to which Company shall have provided evidence satisfactory to
         Agents of the foregoing; provided, that in the case of any transaction
         described in clause (b) or (c), (1) no Capital Stock that is pledged as
         Collateral under the Collateral Documents shall cease to be so pledged
         other than as a result of the dissolution of the Person that issued
         such Capital Stock, or as a result of a merger of such Person (or a
         sale of all of the Capital Stock of such Person to a wholly owned
         Subsidiary of Company) where a percentage of the Capital Stock of the
         surviving Person (or acquiring Person, as the case may be) equal to the
         percentage of the Capital Stock of the disappearing Person (or acquired
         Person, as the case may be) pledged as Collateral under the Collateral
         Documents is pledged as Collateral under the Collateral Documents, (2)
         except as permitted under the preceding clause (1), no assets subject
         to the Lien granted under the Collateral Documents immediately prior to
         such transaction shall cease to be subject to the Lien granted under
         the Collateral Documents as a result of such transaction, (3) no such
         transaction shall result in dividends or distributions of any property
         or assets, or the issuance of any Capital Stock of any Person, to any
         Person other than a wholly owned Subsidiary of Company, (4) the
         structure and documentation for such transaction shall be provided in
         advance to Agents and their counsel and shall be satisfactory to them,
         (5) Company and its Subsidiaries shall not directly or indirectly
         incur, create, assume or become liable with respect to any additional
         Indebtedness, Contingent Obligations, funding obligations or other
         obligations to provide funds, credit or credit support in connection
         with or as a result of any such transaction (other than intercompany
         Indebtedness to Company or one or more wholly owned Subsidiaries of
         Company incurred as part of a Tax Restructuring and otherwise permitted
         under subsection 7.1), (6) Company and its Subsidiaries shall not
         directly or indirectly make any additional Investment in any Person in
         connection with or as a result of any such transaction, other than
         Investments resulting from the payment of costs and expenses described
         in clause (7) below and Investments consisting of Indebtedness or other
         Securities of wholly owned Subsidiaries issued or transferred to other
         wholly owned Subsidiaries as part of a Tax Restructuring, and (7)
         Company shall submit to Agents in connection with each such transaction
         an Officer's Certificate certifying (x) as to the conditions set forth
         in preceding clauses (1) through (3) and (5) through (6), (y) in the
         case of a transaction described in clause (b) above, that, in Company's
         opinion, such transaction shall effectively reduce U.S. tax obligations
         on the income earned and/or repatriated by Foreign Owned Entities, and
         (z) that all fees, costs and expenses of attorneys and advisors of
         Company and its Subsidiaries in connection with such transaction (which
         shall be set forth in a statement in reasonable detail attached to such
         Officer's Certificate) shall not exceed $50,000, and the aggregate
         amount of all such fees, costs and expenses for all such transactions
         (including but not limited to advisory fees and success fees) shall not
         exceed, in the aggregate, $250,000;".

              C. Subsection 7.7 of the Credit Agreement is hereby further
amended by adding immediately after the end of the last sentence thereof the
following new sentence:

         "Nothing in this subsection 7.7 shall (1) prohibit Borrowers and their
         Subsidiaries from rejecting, pursuant to Section 365 of the Bankruptcy
         Code, the lease agreement, service or operating agreement and steam and
         power supply agreements relating to the Tulsa waste-to-energy Project,
         so long as Borrowers (A) certify concurrently with such rejection that
         such action will not have a Material Adverse Effect and (B) obtain
         approval of such rejection from the Bankruptcy Court, and (2) the
         involuntary receivership and liquidation of Greenway Insurance Company
         of Vermont, a Vermont corporation.".

              D. Subsection 7.14A of the Credit Agreement is hereby amended by
adding at the end thereof the following new sentence:

         "Nothing in this subsection 7.14A shall prohibit Company and its
         Subsidiaries from rejecting, pursuant to Section 365 of the Bankruptcy
         Code, the lease agreement, service or operating agreement and steam and
         power supply agreements relating to the Tulsa waste-to-energy Project,
         so long as Borrowers (a) certify concurrently with such rejection that
         such action will not have a Material Adverse Effect and (b) obtain
         approval of such rejection from the Bankruptcy Court.".

         1.6  Addition of Exhibits.

              The Credit Agreement is hereby further amended by adding thereto a
new Exhibit XVI and a new Exhibit XVII in the forms attached hereto as Annex A
and Annex B, respectively.

         1.7  Schedules to the Credit Agreement.

              Schedule 3.1A(i) to the Credit Agreement is hereby amended by
deleting it in its entirety and substituting therefor a new Schedule 3.1A(i), in
the form attached hereto as Annex C.

         1.8  Limited Consent.

              The undersigned Lenders hereby consent to extending the Stated
Maturity Date to October 1, 2003, as requested by Company and as reflected in
this Amendment. The consent set forth in this paragraph shall be limited
precisely as written and is provided solely for the purpose of permitting the
aforementioned extension of the Stated Maturity Date, and this consent does not
constitute, nor should it be construed as, a consent to any other extension of
the Stated Maturity Date in any other instance, or as a waiver of compliance by
Borrowers with respect to any term, provision or condition of the Credit
Agreement or any other instrument or agreement referred to therein.

         1.9  Limited Consent Re Prepetition Liens.

              The undersigned Lenders, in their respective capacities as
Prepetition Lenders, hereby consent to the release, termination and
extinguishment of, and authorize Prepetition Agent to release, terminate and
extinguish (A) all liens granted under the Prepetition Credit Documents on (i)
the Capital Stock of Island Power Corporation, (ii) the rights of Covanta Energy
Group to subscribe for additional Capital Stock of Island Power Corporation and
(iii) obligations owed to Covanta Power International Holdings with respect to
intercompany advances made by it to Island Power Corporation, in each case to
the extent such Capital Stock, rights and obligations are sold in a Designated
Non-Material Asset Sale, so long as such sale is permitted under the Credit
Agreement, and (B) all liens granted under the Prepetition Credit Documents on
the Capital Stock of any Foreign Owned Entity solely to the extent such Capital
Stock is sold or cancelled in a Tax Restructuring permitted under subsection
7.7(i) and such release of Liens is necessary in order to secure the tax
benefits sought in such Tax Restructuring. The consent and authorization set
forth in this paragraph shall be limited precisely as written and is provided
solely for the purpose of authorizing Prepetition Agent to release such liens,
and this consent does not constitute, nor should it be construed as, either (x)
a waiver of compliance by Prepetition Lenders with respect to any other term,
provision or condition of the Prepetition Credit Agreement, the Intercreditor
Agreement or any other instrument or agreement referred to therein, or (y) a
release, termination or extinguishment of such liens, it being understood that
such release, termination and extinguishment shall occur pursuant to a separate
writing in each instance from Prepetition Agent.

         1.10 Ratification of Extension of Letters of Credit.

              The undersigned Lenders hereby ratify, confirm and approve all
actions taken by Administrative Agent and Issuing Lenders to extend or permit
the extension of the Tranche A Letters of Credit and Tranche B Letters of Credit
described on Annex D attached hereto to the dates set forth on such Annex. The
ratification, confirmation and approval set forth in this paragraph shall be
limited precisely as written, and this ratification, confirmation and approval
does not constitute, nor should it be construed as, a waiver of compliance by
Borrowers or Lenders with respect to (i) subsection 3.1A(i) or 3.1A(ii) of the
Credit Agreement except to the extent of the extensions expressly ratified,
confirmed and approved in this paragraph, (ii) subsection 3.1A(i) or 3.1A(ii) of
the Credit Agreement in any other instance, or (iii) any other term, provision
or condition of the Credit Agreement or any other instrument or agreement
referred to therein.

         SECTION 2. AMENDMENT TO THE SECURITY AGREEMENT

              Section 7(a) of the Security Agreement is hereby amended by
deleting the phrase "keep the items of Equipment and Inventory owned by such
Grantor having a value in excess of $500,000 at the places therefor specified on
Schedule 4(b)" and substituting therefor the phrase "keep the items of Equipment
and Inventory owned by such Grantor having a value in excess of $500,000 at such
Grantor's principal place(s) of business and at the places therefor specified on
Schedule 4(b)".

         SECTION 3. CONDITIONS TO EFFECTIVENESS

              Section 1 of this Amendment shall only become effective upon the
first date on which all of the following conditions precedent shall have been
satisfied (the date of satisfaction of such conditions being referred to herein
as the "Sixth Amendment Effective Date"):

         3.1  Operating Income Schedule Supplement. Agents shall have received a
supplement to the Minimum Cumulative Consolidated Operating Income Schedule
satisfactory in form and substance to Agents.

         3.2  Amendment Fee. Company shall have paid to Administrative Agent,
for distribution to each Tranche A Lender that has executed and delivered a
counterpart to this Amendment prior to 12:00 Noon (New York City time) on March
25, 2003, an amendment fee equal to 1.0% of such Lender's Tranche A Loan
Exposure calculated giving effect to the reduction in Tranche A Commitments
effected by this Amendment.

         3.3  Payment of Expenses. Borrowers shall have paid in full all
outstanding statements for fees and expenses of O'Melveny & Myers LLP and
Ernst & Young Corporate Finance LLC, to the extent submitted to Company
prior to 12:00 Noon (New York City time) on March 24, 2003.

         3.4  Financial Projections. Borrowers shall have delivered to Agents
projected financial statements for Company and its Subsidiaries for the second
and third Fiscal Quarters of 2003, such projected financial statements to (i) be
prepared on a consolidated and consolidating basis in accordance with GAAP, (ii)
be in form and substance reasonably satisfactory to Agents, and (iii) contain
projections of cash flows for each such period and such other financial
information and projections for such periods as Agents may reasonably request.

         3.5  Bankruptcy Court Approval. The Bankruptcy Court shall have
approved this Amendment and the payment of the fees required hereunder pursuant
to an order in form and substance satisfactory to Agents.

         SECTION 4. BORROWERS' REPRESENTATIONS AND WARRANTIES

              In order to induce the Lenders to enter into this Amendment and to
amend the Credit Agreement in the manner provided herein, Borrowers represent
and warrant to each Lender that the following statements are true, correct and
complete:

         4.1  Corporate Power and Authority. Subject to compliance with the
Final Borrowing Order and any applicable provisions of the Bankruptcy Code,
each Loan Party has all requisite corporate power and authority to enter
into this Amendment and to carry out the transactions contemplated by, and
perform its obligations under, the Credit Agreement and the Security
Agreement as amended by this Amendment (collectively, the "Amended Agreements").

         4.2  Authorization of Agreements. The execution and delivery of this
Amendment have been duly authorized by all necessary corporate action on
the part of each Loan Party and the performance of the Amended Agreements
has been duly authorized by all necessary corporate action on the part of
each Loan Party.

         4.3  No Conflict. The execution and delivery by each Loan Party of this
Amendment and the performance by each Borrower of the Amended Agreements do
not and will not (i) violate any provision of any law or any governmental
rule or regulation applicable to Company or any of its Subsidiaries, the
Organizational Documents of Company or any of its Subsidiaries or any
order, judgment or decree of any court or other Government Authority
binding on Company or any of its Subsidiaries, (ii) conflict with, result
in a breach of or constitute (with due notice or lapse of time or both) a
default under any Contractual Obligation (which Contractual Obligation is
enforceable on a post-Petition Date basis) of Company or any of its
Subsidiaries or an applicable order of the Bankruptcy Court, (iii) result
in or require the creation or imposition of any Lien upon any of the
properties or assets of Company or any of its Subsidiaries, or (iv) require
any approval of stockholders or any approval or consent of any Person under
any Contractual Obligation of Company or any of its Subsidiaries.

         4.4  Governmental Consents. The execution and delivery by each Loan
Party of this Amendment and the performance by each Loan Party of the
Amended Agreements do not and will not require any Governmental
Authorization.

         4.5  Binding Obligation. This Amendment has been duly executed and
delivered by each Loan Party, and each of this Amendment and the Amended
Agreements is the legally valid and binding obligations of each Loan Party
enforceable against each Loan Party in accordance with its respective
terms, except as may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or limiting creditors' rights
generally or by equitable principles relating to enforceability.

         4.6 Incorporation of Representations and Warranties From Credit
Agreement. The representations and warranties contained in Section 5 of the
Credit Agreement are and will be true, correct and complete in all material
respects on and as of the Sixth Amendment Effective Date to the same extent
as though made on and as of that date, except to the extent such
representations and warranties specifically relate to an earlier date, in
which case they were true, correct and complete in all material respects on
and as of such earlier date.

         4.7 Notice to Committee. Notice of this Amendment has been given to
and received by counsel to the official committee of unsecured creditors in
the Chapter 11 Cases and the informal committee of holders of Company's
9.25% Debentures.

         4.8  Absence of Default. As of the date hereof after giving effect
hereto, there exists no Event of Default or Potential Event of Default
under the Credit Agreement.

         SECTION 5. ACKNOWLEDGEMENT AND CONSENT

              Each Borrower and Subsidiary Guarantor hereby (i) acknowledges
that such Loan Party has read this Amendment and consents to the terms hereof
and further hereby confirms and agrees that, notwithstanding the effectiveness
of this Amendment, the obligations of such Loan Party under each of the Loan
Documents to which such Loan Party is a party shall not be impaired and each of
the Loan Documents to which such Loan Party is a party are, and shall continue
to be, in full force and effect and are hereby confirmed and ratified in all
respects, (ii) ratifies and confirms the effectiveness of the First Amendment,
the Second Amendment, the Third Amendment, the Fourth Amendment and the Fifth
Amendment in all respects, and (iii) confirms that the provisions of the First
Amendment, the Second Amendment the Third Amendment, the Fourth Amendment and
the Fifth Amendment are binding on each of the Borrowers.

         SECTION 6. MISCELLANEOUS

         6.1  Reference to and Effect on the Credit Agreement and the Other
              Loan Documents.

              A. On and after the Sixth Amendment Effective Date, each reference
in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or
words of like import referring to the Credit Agreement, and each reference in
the other Loan Documents to the "Credit Agreement", "thereunder", "thereof" or
words of like import referring to the Credit Agreement shall mean and be a
reference to the Credit Agreement as amended by this Amendment. On and after the
Sixth Amendment Effective Date, each reference in the Security Agreement to
"this Agreement", "hereunder", "hereof", "herein" or words of like import
referring to the Security Agreement, and each reference in the other Loan
Documents to the "Security Agreement", "thereunder", "thereof" or words of like
import referring to the Security Agreement shall mean and be a reference to the
Security Agreement as amended by this Amendment.

              B. Except as specifically amended by this Amendment, the Credit
Agreement, the Security Agreement and the other Loan Documents shall remain in
full force and effect and are hereby ratified and confirmed.

              C. The execution, delivery and performance of this Amendment shall
not constitute a waiver of any provision of, or operate as a waiver of any
right, power or remedy of any Agent or any Lender under, the Credit Agreement or
any of the other Loan Documents.

         6.2  Fees and Expenses. Each Borrower acknowledges that all costs, fees
and expenses as described in subsection 10.2 of the Credit Agreement
incurred by Administrative Agent, Documentation Agent or the Lenders and
their respective counsel (including, without limitation, O'Melveny & Myers
LLP and Ernst & Young Corporate Finance LLC) with respect to this Amendment
and the documents and transactions contemplated hereby shall be for the
account of Borrowers.

         6.3  Headings. Section and subsection headings in this Amendment
are included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose or be given any substantive effect.

         6.4  Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF
THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

         6.5  Counterparts; Effectiveness. This Amendment may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages
are physically attached to the same document. This Amendment (other than Section
1 hereof, the effectiveness of which shall be governed by Section 3) shall
become effective upon the first date on which: (i) Borrowers, each Subsidiary
Guarantor and Lenders constituting Supermajority Tranche A Lenders and Requisite
Lenders shall have each executed a counterpart hereof, and (ii) Company,
Administrative Agent and Documentation Agent shall have received written or
telephonic notification of such execution and authorization of delivery of such
counterparts.

                [Remainder of this page intentionally left blank]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

BORROWERS:

                                          COVANTA ENERGY CORPORATION

                                          By: /s/ Jeffrey R. Horowitz
                                              ----------------------------------
                                              Jeffrey R. Horowitz
                                              Authorized Officer

                                          Each of the entities named on Schedule
                                          A annexed hereto, as Borrowers

                                          By: /s/ Jeffrey R. Horowitz
                                              ----------------------------------
                                              Jeffrey R. Horowitz
                                              Authorized Officer

                                          Each of the entities named on Schedule
                                          B annexed hereto, as Borrowers

                                          By: /s/ Scott Mackin
                                              ----------------------------------
                                              Scott Mackin
                                              Authorized Officer

<PAGE>

SUBSIDIARY GUARANTORS:

                                          Each of the entities named on Schedule
                                          C annexed hereto, as Subsidiary
                                          Guarantors

                                          By: /s/ Jeffrey R. Horowitz
                                              ----------------------------------
                                              Jeffrey R. Horowitz
                                              Authorized Officer

<PAGE>

                                          Each of the entities named on Schedule
                                          D annexed hereto, as Subsidiary
                                          Guarantors

                                          By: /s/ Scott Mackin
                                              ----------------------------------
                                              Scott Mackin
                                              Authorized Officer

<PAGE>

AGENTS AND LENDERS:

                                          BANK OF AMERICA, N.A.,
                                          as Administrative Agent and
                                          Co-Arranger and as a Lender

                                          By: /s/ Michael R. Heredia
                                              ----------------------------------
                                              Michael R. Heredia
                                              Managing Director
<PAGE>

                                          DEUTSCHE BANK AG, NEW YORK BRANCH,
                                          as Documentation Agent and Co-Arranger
                                          and as a Lender

                                          By: /s/ Keith C. Braun
                                              ----------------------------------
                                              Keith C. Braun
                                              Director

                                          By: /s/ Mark B. Cohen
                                              ----------------------------------
                                              Mark B. Cohen, Managing Director
                                              Head of Workout
<PAGE>

                                          BAYERISCHE HYPO-UND VEREINSBANK AG,
                                          as a Lender

                                          By: /s/ Salvatore Esposito
                                              ----------------------------------
                                              Name:  Salvatore Esposito
                                              Title: Director

                                          By: /s/ John Sweeney
                                              ----------------------------------
                                              Name:  John Sweeney
                                              Title: Director

<PAGE>
                                          COMMERZBANK AG, NEW YORK AND
                                          GRAND CAYMAN BRANCHES,
                                          as a Lender

                                          By: /s/ Robert J. Donohue
                                              ----------------------------------
                                              Name:  Robert J. Donohue
                                              Title: Senior Vice President

                                          By: /s/ Terrence P. Sweeney
                                              ----------------------------------
                                              Name:  Terrence P. Sweeney
                                              Title: Senior Vice President

<PAGE>
                                          CREDIT LYONNAIS NEW YORK BRANCH,
                                          as a Lender

                                          By: /s/ James B. Hallock
                                              ----------------------------------
                                              Name:  James B. Hallock
                                              Title: Vice President
<PAGE>

                                          FLEET NATIONAL BANK

                                          By: /s/ Fred P. Lucy, II
                                              ----------------------------------
                                              Name:  Fred P. Lucy, II
                                              Title: Vice President

<PAGE>
                                          HSBC BANK USA,
                                          as a Lender

                                          By: /s/ Carol A. Kraus
                                              ----------------------------------
                                              Name:  Carol A. Kraus
                                              Title: HSBC Bank USA
                                                     Vice President

<PAGE>

                                          JPMORGAN CHASE BANK
                                          (formerly known as The Chase Manhattan
                                          Bank), as a Lender

                                          By: /s/ Michael Lancia
                                              ----------------------------------
                                              Name:  Michael Lancia
                                              Title: Vice President

<PAGE>

                                          IIB BANK LTD, IFSC BRANCH
                                          as a Lender

                                          By: /s/ Brian Dunne
                                              ----------------------------------
                                              Name:  Brian Dunne
                                              Title:

                                          By: /s/ Niall Murray
                                              ----------------------------------
                                              Name:  Niall Murray
                                              Title: Authorized Signatory

<PAGE>

                                          LANDESBANK HESSEN-THURINGEN
                                          GIROZENTRALE,
                                          as a Lender

                                          By: /s/ David A. Leech
                                              ----------------------------------
                                              Name:  David A. Leech
                                              Title: Vice President
                                                     Corporate Finance Division
                                                     Structured Finance Dept.

                                          By: /s/ Shan Chakraborty
                                              ----------------------------------
                                              Name:  Shan Chakraborty
                                              Title: Assistant Vice President
                                                     Corporate Finance Division
                                                     Structured Finance Dept.
<PAGE>
                                          BANC OF AMERICA SECURITIES LLC,
                                          as Agent for BANK OF AMERICA, N.A.,
                                          as a Lender

                                          By: /s/ Gregory Ford
                                              ----------------------------------
                                              Name:  Gregory Ford
                                              Title: Managing Director

<PAGE>

                                          SUNTRUST BANK,
                                          as a Lender

                                          By: /s/ George A. Ways
                                              ----------------------------------
                                              Name:  George A. Ways
                                              Title: Managing Director
<PAGE>
                                          THE BANK OF NEW YORK
                                          as a Lender

                                          By: /s/ Peter W. Helt
                                              ----------------------------------
                                              Name:  Peter W. Helt
                                              Title: Vice President

<PAGE>
                                          THE BANK OF NOVA SCOTIA,
                                          as a Lender

                                          By: /s/ Joseph J. Farricielli, Jr.
                                              ----------------------------------
                                              Name:  Joseph J. Farricielli, Jr.
                                              Title: Director

<PAGE>
                                          SPECIAL SITUATIONS INVESTING GROUP,
                                          INC., as a Lender

                                          By: /s/ Michael Mansour
                                              ----------------------------------
                                              Name:  Michael Mansour
                                              Title: Authorized Signatory
<PAGE>
                                          UBS AG, STAMPORD BRANCH
                                          as a Lender

                                          By: /s/ Kelly Smith
                                              ----------------------------------
                                              Name:  Kelly Smith
                                              Title: Director
                                                     Recovery Management

                                          By: /s/ Robert Reuter
                                              ----------------------------------
                                              Name: Robert Reuter
                                              Title: Executive Director

<PAGE>

                                          WESTLB AG (formerly known as
                                          Westdeutsche Landesbank Girozentrale),
                                          NEW YORK BRANCH
                                          as a Lender

                                          By: /s/ Alan S. Bookspan
                                              ----------------------------------
                                              Name:  Alan S. Bookspan
                                              Title: Director

                                          By: /s/ Salvatore Battinelli
                                              ----------------------------------
                                              Name:  Salvatore Battinelli
                                              Title: Managing Director
                                                     Credit Department

<PAGE>
                                          MERRILL LYNCH, PIERCE & SMITH
                                          INCORPORATED, as a Lender

                                          By: /s/ Kevin Lydon
                                              ----------------------------------
                                              Name:  Kevin Lydon
                                              Title: Managing Director
<PAGE>

                                   Schedule A
                                 Other Borrowers

1.    AMOR 14 Corp.
2.    Covanta Acquisition, Inc.
3.    Covanta Alexandria/Arlington, Inc.
4.    Covanta Babylon, Inc.
5.    Covanta Bessemer, Inc.
6.    Covanta Bristol, Inc.
7.    Covanta Cunningham Environmental Support, Inc.
8.    Covanta Energy Americas, Inc.
9.    Covanta Energy Construction, Inc.
10.   Covanta Energy Resource Corp.
11.   Covanta Energy Sao Jeronimo, Inc.
12.   Covanta Energy Services, Inc.
13.   Covanta Energy West, Inc.
14.   Covanta Engineering Services, Inc.
15.   Covanta Fairfax, Inc.
16.   Covanta Financial Services, Inc.
17.   Covanta Geothermal Operations Holdings, Inc.
18.   Covanta Geothermal Operations, Inc.
19.   Covanta Heber Field Energy, Inc.
20.   Covanta Hennepin Energy Resource Co., L.P.
21.   Covanta Hillsborough, Inc.
22.   Covanta Honolulu Resource Recovery Venture
23.   Covanta Huntington Limited Partnership
24.   Covanta Huntington Resource Recovery One Corp.
25.   Covanta Huntington Resource Recovery Seven Corp.
26.   Covanta Huntington, Inc.
27.   Covanta Huntsville, Inc.
28.   Covanta Hydro Energy, Inc.
29.   Covanta Hydro Operations West, Inc.
30.   Covanta Hydro Operations, Inc.
31.   Covanta Imperial Power Services, Inc.
32.   Covanta Indianapolis, Inc.
33.   Covanta Kent, Inc.
34.   Covanta Key Largo, Inc.
35.   Covanta Lake, Inc.
36.   Covanta Lancaster, Inc.
37.   Covanta Lee, Inc.
38.   Covanta Long Island, Inc.
39.   Covanta Marion Land Corp.
40.   Covanta Marion, Inc.
41.   Covanta Mid-Conn., Inc.
42.   Covanta Montgomery, Inc.
43.   Covanta New Martinsville Hydro-Operations Corp.
44.   Covanta Northwest Puerto Rico, Inc.
45.   Covanta Oahu Waste Energy Recovery, Inc.
46.   Covanta Oil & Gas, Inc.
47.   Covanta Onondaga Five Corp.
48.   Covanta Onondaga Four Corp.
49.   Covanta Onondaga Limited Partnership
50.   Covanta Onondaga Operations, Inc.
51.   Covanta Onondaga Three Corp.
52.   Covanta Onondaga Two Corp.
53.   Covanta Onondaga, Inc.
54.   Ogden Services Corporation
55.   Covanta Operations of Union LLC
56.   Covanta OPW Associates, Inc.
57.   Covanta OPWH, Inc.
58.   Covanta Pasco, Inc.
59.   Covanta Plant Services of New Jersey, Inc.
60.   Covanta Power Development of Bolivia, Inc.
61.   Covanta Power Development, Inc.
62.   Covanta Power Equity Corp.
63.   Covanta Projects of Hawaii, Inc.
64.   Covanta Projects of Wallingford, LP
65.   Covanta RRS Holdings, Inc.
66.   Covanta Secure Services USA, Inc.
67.   Covanta Secure Services, Inc.
68.   Covanta SIGC Energy II, Inc.
69.   Covanta SIGC Energy, Inc.
70.   Covanta SIGC Geothermal Operations, Inc.
71.   Covanta Stanislaus, Inc.
72.   Covanta Systems, Inc.
73.   Covanta Tampa Bay, Inc.
74.   Covanta Tulsa, Inc.
75.   Covanta Union, Inc.
76.   Covanta Wallingford Associates, Inc.
77.   Covanta Warren Energy Resources Co., LP
78.   Covanta Waste Solutions, Inc.
79.   Covanta Waste to Energy of Italy, Inc.
80.   Covanta Waste to Energy, Inc.
81.   Covanta Water Holdings, Inc.
82.   Covanta Water Systems, Inc.
83.   Covanta Water Treatment Services, Inc.
84.   DSS Environmental, Inc.
85.   ERC Energy II, Inc.
86.   ERC Energy, Inc.
87.   Heber Field Company
88.   Heber Field Energy II, Inc.
89.   Heber Geothermal Company
90.   Heber Loan Partners
91.   J.R. Jacks Construction Corp.
92.   Ogden Constructors, Inc.
93.   Ogden Environmental & Energy Services Co., Inc.
94.   OPI Quezon, Inc.
95.   Second Imperial Geothermal Co., L.P.
96.   Three Mountain Operations, Inc.
97.   Three Mountain Power LLC
<PAGE>

                                   Schedule B
                                 Other Borrowers

1.    Ogden Facility Management Corporation of Anaheim
2.    LaGuardia Fuel Facilities Corp.
3.    Lenzar Electro-Optics, Inc.
4.    Newark Automotive Fuel Facilities Corporation, Inc.
5.    Ogden Allied Abatement & Decontamination Service, Inc.
6.    Ogden Allied Maintenance Corp.
7.    Ogden Allied Payroll Services, Inc.
8.    Ogden Attractions, Inc.
9.    Ogden Aviation Distributing Corp.
10.   Ogden Aviation Fueling Company of Virginia, Inc.
11.   Ogden Aviation Service Company of Colorado, Inc.
12.   Ogden Aviation Service Company of New Jersey, Inc.
13.   Ogden Aviation Service Company of New York, Inc.
14.   Ogden Aviation Service Company of Pennsylvania, Inc.
15.   Ogden Aviation Service International Corporation
16.   Ogden Aviation, Inc.
17.   Ogden Cargo Spain, Inc.
18.   Ogden Central and South America, Inc.
19.   Ogden Facility Holdings, Inc.
20.   Ogden Film and Theatre, Inc.
21.   Ogden Firehole Entertainment Corp.
22.   Ogden International Europe, Inc.
23.   Ogden New York Services, Inc.
24.   Ogden Support Services, Inc.
25.   PA Aviation Fuel Holdings, Inc.
26.   Philadelphia Fuel Facilities Corporation
<PAGE>

                                   Schedule C
                              Subsidiary Guarantors

1.    Covanta Energy Group, Inc.
2.    Covanta Energy International, Inc.
3.    Covanta Equity of Stanislaus, Inc.
4.    Covanta Haverhill Properties, Inc.
5.    Covanta Haverhill, Inc.
6.    Covanta Omega Lease, Inc.
7.    Covanta Power International Holdings, Inc.
8.    Covanta Projects, Inc.
9.    Haverhill Power, Inc.
10.   LMI, Inc. 11. Michigan Waste Energy, Inc.
12.   OFS Equity of Alexandria/Arlington, Inc.
13.   OFS Equity of Babylon, Inc.
14.   OFS Equity of Delaware, Inc.
15.   OFS Equity of Huntington, Inc.
16.   OFS Equity of Indianapolis, Inc.
17.   OFS Equity of Stanislaus, Inc.
18.   Ogden Management Services, Inc.
19.   Covanta Equity of Alexandria/Arlington, Inc.

<PAGE>
                                   Schedule D
                              Subsidiary Guarantors

1.    Ogden Technology Services Corporation
2.    Ogden Transition Corporation

<PAGE>
                                     ANNEX A

                                   EXHIBIT XVI

                                 MONTHLY BUDGET

                                  See attached.

<PAGE>
                                     ANNEX B

                                  EXHIBIT XVII

                             FORM OF OVERHEAD REPORT

                                  See attached.

<PAGE>

                                     ANNEX C

                                SCHEDULE 3.1A(I)

                     TRANCHE A LETTER OF CREDIT OBLIGATIONS

                                  See Attached.

<PAGE>

                                Schedule 3.1A(i)

                           COVANTA ENERGY CORPORATION
                     Tranche A Letter of Credit Obligations
                              (amounts in millions)

<TABLE>
I.  Additional L/C
<S>                       <C>            <C>           <C>               <C>         <C>                                     <C>
    Requirements
                          Project        Business      Purpose           L/C Amount  Comments                                Tranche
                          Corporate      Corporate     Workers Comp      $2.600      Bonding required for workers' comp      A
                                                                                     going forward
                          Haripur        IPP-East      O&M/PPA Guarantee $0.6765     Requirement at discretion of project    A
                          (Bangladesh)                                               participants
                          Koma Kulshan   IPP-West      PPA Guarantee     $0.500      PPA L/C for the benefit of Puget Sound  A
                          Hennepin       WTE           Lease Reserve     $2.098      Annual step-up requirement
                          Hennepin       WTE           Lease Reserve     $2.098      Annual step-up requirement
                          Corporate      Corporate     Workers Comp      $3.000      Bonding required for workers' comp      A
                                                                                     going forward

II. Other L/Cs Required
                          Project        Business      Purpose           L/C Amount  Comments                                Tranche
                          See Comments   See Comments  See Comments      $1.2275     For bonding requirements and            A
                                                                                     performance collateral at energy
                                                                                     projects (such as additional
                                                                                     requirement at Quezon Project),
                                                                                     replacement of various bonds at
                                                                                     Projects, bonds for installation of
                                                                                     DSS equipment, bidding on additional
                                                                                     waste contracts, and similar
                                                                                     purposes. Up to $500,000 of the
                                                                                     foregoing L/C Amount may be utilized
                                                                                     for bonding required for workers'
                                                                                     comp going forward
</TABLE>

<PAGE>
                                     Annex D

                           Extended Letters of Credit

<TABLE>
--------------------------------------------------------------------------------------------------------------------
                                                                                Original             Extended
   Project/Purpose        Type           Issuing Lender            Amount    Expiration Date      Expiration Date
--------------------------------------------------------------------------------------------------------------------
<S>                     <C>             <C>                      <C>             <C>              <C>
Hennepin                Standby         Bank of America          $2,098,000      04/01/03              9/30/03

(Step-Up)
--------------------------------------------------------------------------------------------------------------------
Workers Compensation    Standby         DKB                     $14,951,617      04/01/03             09/30/03
--------------------------------------------------------------------------------------------------------------------
Workers Compensation    Standby         DKB                      $7,520,423      04/01/03             09/30/03
--------------------------------------------------------------------------------------------------------------------
Hennepin                Standby         Commerzbank             $18,880,552      03/28/03             09/30/03
--------------------------------------------------------------------------------------------------------------------
Hennepin                Standby         Bank of America          $4,195,678      04/01/03             04/01/04

(Step-Up)
--------------------------------------------------------------------------------------------------------------------
Quezon DSR              Standby         Bank of America         $11,802,039      04/01/03             04/01/04
--------------------------------------------------------------------------------------------------------------------
Greenway                Standby         Chase                      $820,000      05/31/03             05/31/04
--------------------------------------------------------------------------------------------------------------------
LICA                    Standby         Bank of America            $300,000      04/01/03             04/01/04
--------------------------------------------------------------------------------------------------------------------
Detroit                 Standby         UBS                    $155,370,953      05/01/03             05/01/04
--------------------------------------------------------------------------------------------------------------------
Workers Compensation    Standby         First Union              $8,465,297      08/31/03              8/31/04
--------------------------------------------------------------------------------------------------------------------
Workers Compensation    Standby         Huntington               $7,500,093      05/31/03             05/31/04
--------------------------------------------------------------------------------------------------------------------
Fairfax                 Standby         SunTrust                   $900,000      06/01/03             06/01/04
--------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                     ANNEX E

                 Additional Designated Non-Material Asset Sales

<TABLE>
---------------------------------------------------------------------------------------------
                    ASSET                                       DESCRIPTION
---------------------------------------------------------------------------------------------
<S>                                            <C>
Ogden Entertainment Services (Asia Pacific)    Sale of shares in this entity held by Ogden
Pty. Ltd., which owns common and preferred     Transition Corporation.
shares of Ogden International Facilities
Corporation Pty. Ltd.

---------------------------------------------------------------------------------------------
Transair                                       Sale of Financiere Ogden and/or transfer of
                                               Ogden International Europe, Inc.'s rights
                                               under the "Return to Profitability" clause of
                                               the Debt Waiver Agreement dated December 31,
                                               1999 between Financiere Transair (currently
                                               known as Financiere Ogden) and Ogden Holdings
                                               B.V. (whose interests have now been assigned
                                               to Ogden International Europe, Inc.).

---------------------------------------------------------------------------------------------
</TABLE>COVANTA ENERGY CORPORATION
                           KEY EMPLOYEE SEVERANCE PLAN

1. Purpose of the Plan. The purpose of the Covanta Energy Corporation Key
Employee Severance Plan is to provide for the payment of severance benefits to
certain Key Employees whose employment with the Company Group is terminated
under certain qualifying circumstances.

2. Definitions. The following terms used in the Plan shall have the meanings set
forth below:

     (a) "Administrator" shall mean the Administrative Committee of Covanta
Energy Corporation. With respect to any period during which there is no such
committee, the Compensation Committee of the Board shall serve as Administrator.

     (b) "Beneficiary" shall mean, with respect to a Key Employee, such Key
Employee's estate.

     (c) "Benefit Continuation Period" shall mean, with respect to a Key
Employee who satisfies the severance benefit conditions described in Section 5,
the period commencing on such Key Employee's Termination Date and ending on the
earlier of (i) the expiration of a number of months equal to the number of
months' Salary payable to such Key Employee as severance pursuant to Section
6(a) and (ii) the expiration of 18 months, notwithstanding that cash severance
benefits are actually paid in a lump sum.

     (d) "Board" shall mean the Board of Directors of Covanta.

     (e) "Company Group" shall mean, collectively or individually, as the
context requires, Covanta and each of its Subsidiaries. When referring to the
employment of a Key Employee with the Company Group (or the termination of such
employment), references to Company Group shall be deemed to refer to the member
thereof that employs such Key Employee, as appropriate in the context.

     (f) "Covanta" shall mean Covanta Energy Corporation, a corporation duly
organized under the laws of the state of Delaware, or any successor thereto.

     (g) "Disability" shall mean a Key Employee's absence, for a consecutive
period of 6 months, from the duties of his or her employment with the Company
Group due to an illness or injury of such Key Employee.

     (h) "Effective Date" shall mean September 18, 2002.

     (i) "Eligible Termination of Employment" shall mean a termination, after
the Effective Date, of a Key Employee's employment with the member of the
Company Group that then employs such Key Employee (i) by such member Without
Cause or (ii) by such Key Employee for Mutual Benefit.

     (j) "Key Employee" shall mean a Tier I Employee, Tier II Employee, Tier III
Employee or Tier IV Employee, as applicable.

     (k) "Mutual Benefit" shall mean the resignation of a Key Employee from
employment with the Company Group following the occurrence of one or more of the
events set forth in clauses (i) through (iv) below without the prior written
consent of the Key Employee, provided that (A) the Key Employee delivers written
notice to the member of the Company Group that employs such Key Employee and to
the Vice President of Human Resources of Covanta of his or her intention to
resign from employment due to one or more of such events, which notice specifies
in reasonable detail the circumstances claimed to provide the basis for such
resignation, and (B) such event or events are not cured by the Company Group (or
such member) within fifteen (15) days following delivery of such written notice
to such member and the Vice President of Human Resources of Covanta:

          (i)  a reduction in such Key Employee's annual rate of base salary;

         (ii)  (x) in the case of such Key Employee's annual bonus for fiscal
               year 2002, any reduction in such Key Employee's bonus
               classification level under the annual bonus plan of the Company
               Group in which such Key Employee is a participant for such fiscal
               year and (y) in the case of such Key Employee's annual bonus for
               any subsequent fiscal year, any such reduction in such Key
               Employee's bonus classification level, other than a reduction in
               a subsequent fiscal year in connection with the redesign of the
               applicable annual bonus plan that affects all similarly situated
               participants similarly;

        (iii)  a relocation of such Key Employee's principal business location
               to a location that is 50-miles or more from his or her principal
               business location at the time of such relocation; or

         (iv)  the failure of any Successor to the Company Group (or member
               thereof that employs such Key Employee) to assume, in writing,
               the obligations of the Company Group to such Key Employee, if
               any, under the Plan and the Covanta Key Employee Retention Bonus
               Plan.

     (l) "Plan" shall mean this Covanta Energy Corporation Key Employee
Severance Plan, as the same may be amended and in effect from time to time.

     (m) "Salary" shall mean a Key Employee's annual base salary rate in effect
on his or her Termination Date except that, in the case of a termination by such
Key Employee for Mutual Benefit as result of a reduction in his or her annual
base rate of salary, the term "Salary" shall mean such annual base rate in
effect immediately prior to such reduction.

     (n) "Subsidiary" shall mean each "person" in which Covanta owns, directly
or indirectly, capital stock or other ownership interests representing fifty
percent (50%) or more of the combined voting power of the outstanding voting
stock or other ownership interests of such person.

     (o) "Termination Date" shall mean the effective date of a Key Employee's
termination of employment with the Company Group.

     (p) "Tier I Employee" shall mean the Chief Executive Officer of Covanta.

     (q) "Tier II Employee" shall mean those senior executives of the Company
Group who report directly to the Chief Executive Officer and who are designated
by Covanta as Tier II Employees for purposes of the Plan.

     (r) "Tier III Employee" shall mean those executives and key employees of
the Company Group who are designated by Covanta as Tier III Employees for
purposes of the Plan.

     (s) "Tier IV Employee" shall mean those key employees of the Company Group
who are designated by Covanta as Tier IV Employees for purposes of the Plan.

     (t) "Without Cause" shall mean the termination of a Key Employee's
employment by the member of the Company Group that employs such Key Employee for
any reason other than as a result of the occurrence of any one or more of the
events set forth below in clauses (i) through (v), which, in the case of the
event or events set forth below in clauses (i) and (ii), is not cured by such
Key Employee within fifteen (15) days following delivery by such member of the
Company Group of written notice to such Key Employee specifying that the Key
Employee's employment is being terminated due to one or more such events and
setting forth in reasonable detail the circumstances claimed to provide the
basis for such termination:

          (i)  the failure or refusal by such Key Employee to substantially
               perform the duties of his or her employment;

         (ii)  the failure of such Key Employee to comply with the written rules
               and policies of the Company Group;

        (iii)  the engaging by such Key Employee in willful and serious
               misconduct in connection with his or her employment that has
               caused or would reasonably be expected to result in material
               injury to the Company Group or any member thereof;

         (iv)  the engaging by such Key Employee in dishonesty or fraudulent
               conduct; or

          (v)  such Key Employee's conviction of, or plea of nolo contendere to,
               a crime that constitutes a felony;

provided that to the extent requested by Covanta or the member of the Company
Group that employs such Key Employee, such Key Employee remain in the active
employment of the Company Group until the Termination Date specified by Covanta
or such member; provided further that (i) such Termination Date shall be no
later than one hundred and eighty (180) days after the delivery by Covanta or
such member of the Company Group employing the Key Employee of written notice of
termination to such Key Employee and (ii) if Covanta or such member thereafter
(but prior to the indicated Termination Date) terminates such Key Employee's
employment Without Cause (and such termination is not due to such Key Employee's
death or Disability), such Key Employee shall be eligible to receive severance
benefits under the Plan provided he or she satisfies all of the other conditions
specified in Section 5.

     (u) "Year of Service" means each period of three hundred sixty five (365)
days during which the Key Employee is actively employed by the Company Group.
For this purpose, one or more non-consecutive periods of active employment may
be aggregated.

3. Administration.

     (a) Authority. The Administrator shall have full power and discretionary
authority to administer the Plan in accordance with its terms, including full
power and discretionary authority to construe and interpret terms of the Plan,
to define the terms used herein, to prescribe, amend and rescind rules and
regulations, agreements, forms and notices relating to the administration,
operation or interpretation of the Plan and to make all other determinations and
take all other actions necessary or advisable for the operation of the Plan.

     (b) Limitation of Liability; Indemnification. The Administrator shall be
entitled to rely upon any report or other information furnished to it by any
officer or other employee of the Company Group and by any independent certified
public accountant, compensation consultant, legal counsel or other professional
retained by any member of the Company Group to assist in the administration of
the Plan. To the maximum extent permitted by law, the Administrator shall not be
liable to any person for, and Covanta shall indemnify and hold the Administrator
harmless from and against any liability in respect of, any action taken or
omitted in good faith in connection with its administration of the Plan.

4. Eligibility. Each Key Employee shall participate in the Plan beginning on the
later of the Effective Date, the date such Key Employee commences full-time
employment with the Company Group and the date such Key Employee is designated
by the Administrator as either a Tier I Employee, Tier II Employee, Tier III
Employee or Tier IV Employee. No other individual shall be eligible to
participate in the Plan.

5. Severance Benefit Conditions. A Key Employee's eligibility for severance
benefits under the Plan shall be subject to all of the following limitations and
conditions precedent:

     (a) the termination of such Key Employee's employment must constitute an
Eligible Termination of Employment; and

     (b) promptly following such Key Employee's Termination Date, such Key
Employee must (i) execute and deliver a termination agreement which contains an
effective release of all claims against the Company Group, substantially in the
form attached hereto as Appendix A, and (ii) refrain from revoking the release
contained in such termination agreement as permitted therein; provided, however,
that such termination agreement may contain additional terms and conditions
relating to non-disparagement.

6. Severance Benefits.

     (a) Cash Payments. Each Key Employee who satisfies the severance benefit
conditions described in Section 5 shall receive (or, in the event of his or her
death, such Key Employee's Beneficiary shall thereafter receive) a single lump
sum cash payment equal to;

          (i) in the case of a Tier I Employee, 200% of such Tier I Employee's
     Salary;

          (ii) in the case of a Tier II Employee, 150% of such Tier II
     Employee's Salary;

          (iii) in the case of a Tier III Employee, 100% such Tier III
     Employee's Salary; and

          (iv) in the case of a Tier IV Employee, the greater of (x) 50% of such
     Tier IV Employee's Salary and (y) the lesser of (I) the product of (A) such
     Tier IV Employee's Salary for two (2) weeks multiplied by (B) the number of
     Years of Service completed by such Tier IV Employee prior to his or her
     Termination Date and (II) 100% of such Tier IV Employee's Salary.

         All lump sum cash payments to be paid pursuant to this Section 6(a)
shall be paid as soon as reasonably practicable, but in no event more than
twenty (20) business days following, the date the Key Employee executes and
delivers the release and any other agreement required under Section 5(b).

         Notwithstanding the foregoing, in the event that a Key Employee
receives state unemployment compensation for any part of the Benefit
Continuation Period, such Key Employee shall promptly repay to Covanta the
aggregate amount of state unemployment compensation received by such Key
Employee for such period.

     (b) Continued Medical and Dental Benefits. Each Key Employee who satisfies
the severance benefit conditions described in Section 5 shall be entitled to
continue during such Key Employee's Benefit Continuation Period his or her
participation and the participation of such Key Employee's eligible dependents
in the medical and dental benefit plans in which such Key Employee (and eligible
dependents) participated immediately prior to his or her Termination Date, in
accordance with the generally applicable terms of such plans as in effect from
time to time, subject to timely payment by such Key Employee (and eligible
dependents) of all contributions, premiums, co-payments and deductibles required
to be paid by participants in such plans; provided that a Key Employee's right
to continue his or her participation and the participation of such Key
Employee's eligible dependents in any such medical or dental plan shall cease
immediately if such Key Employee is offered or becomes eligible for coverage
under a medical or dental plan, as applicable, of any subsequent employer.

7. Claims Procedure. A Key Employee can make a claim for benefits under the Plan
by sending written notification thereof to the Administrator. If a Key Employee
who has submitted such a claim is denied benefits for any reason, such Key
Employee will be notified in writing of such denial within ninety (90) days
after the claim is submitted or will receive written notice within that period
of time stating that an additional ninety (90) days is required to rule upon the
claim. In that case, if such Key Employee's claim for benefits is denied, such
Key Employee will receive written notice of such denial within one hundred
eighty (180) days. Such notification will:

     (a) indicate the reasons for the denial and cite the specific Plan
provisions upon which the denial is based;

     (b) describe any additional information that may be needed for approval of
such Key Employee's claim; and

     (c) contain an explanation of the review procedure.

     A Key Employee can request a review of the denial within ninety (90) days
after the time he or she receives the denial notice. Within sixty (60) days
after receiving such written notice for review, the Administrator will notify
the Key Employee, in writing, of its final decision unless the Administrator
notifies the Key Employee, in writing, that special circumstances require an
extension (for no more than a single, additional sixty (60) day period), in
which case the Administrator will render its written decision within one hundred
twenty (120) days after receiving the written notice for review. If the
Administrator denies the request for review, the Administrator's final decision
will be in writing and will contain specific reason and references to the Plan
provisions on which the denial is based.

8. Amendment and Termination. Covanta may, in its sole discretion, with
prospective or retroactive effect, amend, alter, suspend, discontinue or
terminate the Plan at any time and for any reason, with or without notice and
without the consent of any Key Employee, stockholder or other person; provided,
however, that no such action that would adversely affect the right of a Key
Employee to receive or be eligible for severance benefits under the Plan may be
taken at any time prior to the one year anniversary of the date a plan of
reorganization for Covanta is confirmed without the prior consent of the
affected Key Employee.

9. General Provisions.

     (a) No Special Employment Rights. Nothing contained in the Plan shall
confer upon any Key Employee any right with respect to the continuation of such
Key Employee's employment by the Company Group or interfere in any way with the
right of the Company Group at any time to terminate such employment or to
increase or decrease the base salary, other compensation or benefits of such Key
Employee or otherwise modify the terms or conditions of such Key Employee's
employment; provided that such actions may trigger severance benefits if they
constitute a termination Without Cause or termination for Mutual Benefit.

     (b) No Assignment by Key Employees. Each Key Employee's rights hereunder
are personal and no Key Employee may assign or transfer any part of his or her
rights or duties hereunder, or any benefits due to him or her, to any other
person, except that, in the event of the Key Employee's death, any benefits
payable to such Key Employee shall be paid instead to his or her Beneficiary.

     (c) Certain Withholdings. The Company Group shall have the right to deduct
from amounts otherwise payable under the Plan any sums that federal, state,
local or foreign tax law requires to be withheld with respect to such payment.

     (d) Parachute Taxes. Notwithstanding anything herein to the contrary, no
amount shall be required to be paid hereunder if such amount would be
non-deductible to any member of the Company Group pursuant to Section 280G of
the Internal Revenue Code of 1986, as amended, or any successor provision, as
determined by Covanta.

     (e) Governing Law. The validity, construction and effect of the Plan and
any rules and regulations relating to the Plan shall be determined in accordance
with the laws of the State of New Jersey, without giving effect to principles of
conflicts of laws, and any applicable provisions of federal law.

     (f) Arbitration. Any dispute or controversy arising under or in connection
with the Plan shall be resolved by binding arbitration after the Key Employee
has exhausted his or her administrative remedies under Section 7. The
arbitration shall be held in Fairfield, New Jersey and, except to the extent
inconsistent with the Plan, shall be conducted in accordance with the National
Employment Dispute Resolution Rules of the American Arbitration Association then
in effect at the time of the arbitration, and otherwise in accordance with
principles which would be applied by a court of law or equity. The arbitrator
shall be acceptable to both the Key Employee and Covanta. If the parties cannot
agree on an acceptable arbitrator, the dispute shall be heard by a panel of
three arbitrators, one appointed by the Key Employee, one appointed by Covanta,
and the third appointed by the other two arbitrators. All expenses of
arbitration shall be borne by the party who incurs the expense, or, in the case
of joint expenses, by both parties in equal portions, except that, in the event
the Key Employee prevails on the principal issues of such dispute or
controversy, all such expenses shall be borne by Covanta.

     (g) Funding. The Plan shall be an unfunded plan. Severance benefits under
the Plan shall be paid from the general assets of the Company Group.

     (h) Severability. If any term or provision of the Plan or the application
thereof to any person or circumstance is to any extent held invalid or
unenforceable, the remainder of the Plan or the application of such term or
provision to persons or circumstances other than those as to which it is held
invalid or unenforceable will not be affected thereby, and each term and
provision of the Plan will be valid and enforceable to the fullest extent
permitted by law.

     (i) Construction. The captions and numbers preceding the sections of the
Plan are included solely as a matter of convenience of reference and are not to
be taken as limiting or extending the meaning of any of the terms and provisions
of the Plan. Whenever appropriate, words used in the singular shall include the
plural or the plural may be read as the singular.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}]]