Document:

EXHIBIT 10.1(m)
                                                                 ---------------

                   FIRST AMENDMENT TO INTERCREDITOR AGREEMENT

                  This FIRST AMENDMENT TO INTERCREDITOR AGREEMENT (this "First
Amendment") is dated as of April 1, 2002 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 (each a "Subsidiary Guarantor" and collectively, the "Subsidiary
Guarantors"), the financial institutions parties 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 Intercreditor Agreement
dated as of March 14, 2001 (as in effect on the date hereof, the "Intercreditor
Agreement"), by and among Company and the subsidiaries of Company party thereto,
as borrowers, the financial institutions listed on the signature pages thereof
as lenders, Administrative Agent, and Documentation Agent. Capitalized terms
used herein without definition shall have the same meanings herein as set forth
in the Intercreditor Agreement (as amended by this First Amendment).

                                    RECITALS

                  WHEREAS, on April 1, 2002 (the "Petition Date"), Borrowers
filed a voluntary petition for relief under the Bankruptcy Code with the United
States Bankruptcy Court for the Southern District of New York (the "Bankruptcy
Court") (such proceedings are hereinafter referred to as the "Chapter 11
Cases"), and each Borrower continues to operate its businesses and manage its
properties as a debtor-in-possession pursuant to Sections 1107 and 1108 of the
Bankruptcy Code; and

                  WHEREAS, Borrowers have requested Pooled Facility Lenders to
provide, and Pooled Facility Lenders have agreed to provide, on the terms and
conditions set forth in that certain Debtor-In-Possession Credit Agreement dated
as of April 1, 2002 (as amended, restated, supplemented or otherwise modified,
the "DIP Credit Agreement") by and among Company and the subsidiaries of Company
party thereto, as borrowers, DIP Lenders and DIP Agents, debtor-in-possession
credit facilities consisting of (i) a revolving loan and letter of credit
facility of up to $115,000,000, and (ii) an additional letter of credit facility
of up to $367,853,962.13; and

                  WHEREAS, it is a condition precedent to the obligations of DIP
Lenders to make loans and issue letters of credit under the DIP Credit Agreement
that Borrowers, Subsidiary Guarantors, DIP Lenders and DIP Agents shall have
entered into this First Amendment;

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

         SECTION 1. AMENDMENTS TO THE INTERCREDITOR AGREEMENT

                  1.1. Provisions Relating to Defined Terms.

                  Section 1.1 of the Intercreditor Agreement is hereby amended
by deleting the definitions of "Borrower", "Creditor Parties", "Ratable
Paydown", "Realized Deficiency", and "Realized Ratable Share" contained therein
and inserting the following new definitions in the appropriate alphabetical
order:

                  "Bankruptcy Court" shall mean the United States Bankruptcy
         Court for the Southern District of New York.

                  "Borrower" shall have the meaning assigned to that term in the
         introduction to this Agreement and shall also include each Subsidiary
         of Company listed on the signature pages of the First Amendment as a
         Borrower and each New Borrower.

                  "Borrowing Order Entry Date" shall mean the day an order
         substantially in the form of Exhibit IX to the DIP Credit Agreement
         (with any modifications thereto approved by DIP Agents and Requisite
         DIP Lenders (or such other number of DIP Lenders as is required under
         the DIP Credit Agreement) in their sole discretion) is entered by the
         Bankruptcy Court in the Chapter 11 Cases after a final hearing under
         Bankruptcy Rule 4001(c)(2); provided that as of such day such order (x)
         is in full force and effect without amendment, supplement or other
         modification (other than amendments, supplements or modifications made
         with the express written consent or joinder of DIP Agents and Requisite
         DIP Lenders (or such other number of DIP Lenders as is required under
         the DIP Credit Agreement) and approved by the Bankruptcy Court), and
         (y) has not been reversed or stayed by the Bankruptcy Court or any
         other court of competent jurisdiction.

                  "Creditor Parties" shall mean Lenders, Existing Opt-Out
         Facility Agents, Existing Pooled Facility Agents, Credit Agent,
         Collateral Agent and DIP Agents.

                  "DIP Agents" shall mean the "Agents" as such term is defined
         in the DIP Credit Agreement.

                  "DIP Closing Date" shall mean the "Closing Date" as such term
         is defined in the DIP Credit Agreement.

                  "DIP Credit Agent" shall mean the "Administrative Agent" as
         such term is defined in the DIP Credit Agreement.

                  "DIP Credit Agreement" shall mean that certain
         Debtor-In-Possession Credit Agreement dated as of April 1, 2002, by and
         among certain Borrowers and certain other domestic Subsidiaries of
         Company, DIP Lenders and DIP Agents, as such agreement may be amended,
         supplemented or otherwise modified time to time.

                  "DIP Lenders" shall mean the financial institutions which are
         "Lenders" as defined in the DIP Credit Agreement.

                  "DIP Loan Documents" shall mean the "Loan Documents" as such
         term is defined in the DIP Credit Agreement.

                  "DIP Obligations" shall mean the "Obligations" as such term is
         defined in the DIP Credit Agreement.

                  "First Amendment" shall mean that certain First Amendment to
         Intercreditor Agreement dated as of April 1, 2002 by and among
         Borrowers, the Subsidiary Guarantors, the Lenders party thereto, Bank
         of America, N.A., as administrative agent for such Lenders, and
         Deutsche Bank AG, New York Branch, as documentation agent for such
         Lenders.

                  "Interim Borrowing Order" shall mean the "Interim Borrowing
         Order" as such term is defined in the DIP Credit Agreement.

                  "New Borrower" shall mean each Subsidiary of Company that is
         not a party to the Credit Agreement that is a borrower under the DIP
         Credit Agreement.

                  "Ratable Paydown" shall mean, with respect to any Opt-Out
         Lender at any time that a Realized Deficiency exists with respect to
         such Opt-Out Lender, the aggregate sum of such Opt-Out Lender's
         Realized Ratable Shares calculated with respect to each permanent
         prepayment of principal of the Pooled Facility Loans, each permanent
         principal reimbursement payment made in respect of honored drawings
         under the Pooled Letters of Credit, each permanent reduction of
         Revolving Loan Commitments and each permanent principal reimbursement
         payment made in respect of honored drawings under the Tranche B Letters
         of Credit described in clauses (i), (ii), (iii) and (iv) of the
         definition of Realized Ratable Share; provided, however, that the
         amount of the Ratable Paydown of any Opt-Out Lender shall be reduced
         pro rata by the amount of any financing needs for the project directly
         relating to the relevant Opt-Out Facility which is funded by the
         Borrowers after the Closing Date and is not recovered by the Borrowers
         from the sale price of such project (and reflected as a reduction in
         the Realized Deficiencies of Opt-Out Lenders relating to the relevant
         Opt-Out Facility) or through distributions from such project; and
         provided further, however, that the Ratable Paydown (and amounts owed
         with respect to the Ratable Paydown Indemnity) of any Opt-Out Lender
         with respect to the Anaheim Pond arena Opt-Out Facility shall not
         exceed, in any event, the Realized Deficiency of such Opt-Out Lender
         with respect to such Opt-Out Facility determined without giving effect
         to the last sentence of the definition of "Realized Deficiency".

                  "Realized Deficiency" shall mean, with respect to any Opt-Out
         Lender under a particular Opt-Out Facility, the total amount of such
         Opt-Out Lender's deficiency claim (including, without limitation, any
         interest, fees or other costs, to the extent reimbursable pursuant to
         the applicable Opt-Out Facility Documents as in effect on the date
         hereof) against Company under Company's guaranty of such Opt-Out
         Facility and/or under the Class A Palladium Put Agreement, Class B
         Palladium Put Agreement or Class II Senators Put Agreement (in each
         case, if any), determined after any disputes with respect thereto have
         been resolved by settlement agreement, by liquidation of such Opt-Out
         Lender's claim (including liquidation of the relevant Opt-Out Lender
         Collateral or, as the case may be, application of any Excluded
         Collateral) or by the judgment of a court of competent jurisdiction
         (including a bankruptcy court pursuant to Section 502(c) of the
         Bankruptcy Code or otherwise in any case under the Bankruptcy Code
         concerning Company or its Subsidiaries). In order to establish a
         Realized Deficiency (or the amount thereof) for purposes of this
         Agreement, an Opt-Out Lender shall not be required to take any action
         against any Person other than Company or its applicable Subsidiary,
         except to the extent expressly required by the applicable Opt-Out
         Facility Documents. Subject to the last proviso to the definition of
         "Ratable Paydown", for purposes of this Agreement a Realized Deficiency
         in the aggregate amount of $60,000,000 shall be deemed to exist with
         respect to the Anaheim Pond arena Opt-Out Facility during the period
         from the first issuance of a Tranche B Letter of Credit until the date
         on which a Realized Deficiency exists with respect to such Opt-Out
         Facility without giving effect to this sentence.

                  "Realized Ratable Share" shall mean, for any Opt-Out Lender
         under any Opt-Out Facility, with respect to (i) any repayment of
         principal on the Pooled Facility Loans on or after the Closing Date,
         (ii) any principal reimbursement payments made in respect of honored
         drawings under the Pooled Letters of Credit on or after the Closing
         Date (in each case under clause (i) and (ii), to the extent that such
         repayment does not result in an equal increase in the Revolving Loan
         Commitments or any other commitments in effect), (iii) any permanent
         reduction of the Revolving Loan Commitments, and (iv) any principal
         reimbursement payments made in respect of honored drawings under the
         Tranche B Letters of Credit on or after the Petition Date, as the case
         may be, the product of (a) the total amount of such Opt-Out Lender's
         Realized Deficiency multiplied by (b) the ratio obtained by dividing
         (x) the amount of such repayment of principal on the Pooled Facility
         Loans or the amount of such principal reimbursement payments made in
         respect of honored drawings under the Pooled Letters of Credit or such
         permanent reduction of the Revolving Loan Commitments or the amount of
         such principal reimbursement payments made in respect of honored
         drawings under the Tranche B Letters of Credit, as the case may be, by
         (y) the sum of the total Pooled Facility Exposure and the total
         Revolving Loan Exposure of all Lenders and the total Tranche B Loan
         Exposure, to be measured as of the time of any such repayment of
         principal on the Pooled Facility Loans or any such reimbursement of
         principal made in respect of honored drawings under the Pooled Letters
         of Credit or any such permanent reduction of the Revolving Loan
         Commitments or any such reimbursement of principal made in respect of
         honored drawings under the Tranche B Letters of Credit (without giving
         effect to such prepayment or reduction).

                  "Requisite DIP Lenders" shall mean the "Requisite Lenders" as
         such term is defined in the DIP Credit Agreement.

                  "Tranche A Facility" shall mean the revolving loan and letter
         of credit facility in the original principal amount of up to
         $115,000,000 established under the DIP Credit Agreement.

                  "Tranche A Lender" shall mean a Lender in its capacity as a
         holder of Tranche A Loan Exposure.

                  "Tranche A Letters of Credit" shall mean letters of credit
         issued under the Tranche A Facility.

                  "Tranche A Loan Exposure" shall mean, with respect to any
         Lender, as of any date of determination (i) prior to the termination of
         such Lender's commitments to extend credit under the Tranche A
         Facility, the amount of such commitment, and (ii) after the termination
         of the such commitment, the sum of (a) the aggregate outstanding
         principal amount of the loans made by that Lender under the Tranche A
         Facility plus (b) in the event that Lender is an issuer of Tranche A
         Letters of Credit, the maximum amount available to be drawn under
         Tranche A Letters of Credit issued by that Lender and the amount of any
         unreimbursed drawings under such Tranche A Letters of Credit (in each
         case net of any participations purchased by other Lenders in such
         Tranche A Letters of Credit or in such unreimbursed drawings) plus (c)
         the aggregate amount of all participations purchased by that Lender in
         any outstanding Tranche A Letters of Credit or any unreimbursed
         drawings under any Tranche A Letters of Credit.

                  "Tranche B Facility" shall mean the letter of credit facility
         of up to $367,853,962.13 established under the DIP Credit Agreement to
         replace certain Pooled Letters of Credit and other letters of credit
         issued and outstanding under the Credit Agreement as of the date of the
         DIP Credit Agreement.

                  "Tranche B Lender" shall mean a Lender in its capacity as a
         holder of Tranche B Loan Exposure.

                  "Tranche B Letters of Credit" shall mean letters of credit
         issued under the Tranche B Facility.

                  "Tranche B Loan Exposure" shall mean with respect to any
         Lender, as of any date of determination (i) prior to the termination
         such Lender's commitments to extend credit under the Tranche B
         Facility, the amount of such commitment, and (ii) after the termination
         of such commitment, the sum of (a) the aggregate outstanding principal
         amount of the loans made by that Lender under the Tranche B Facility
         plus (b) in the event that Lender is an Issuing Lender of Tranche B
         Letters of Credit, the maximum amount available to be drawn under
         Tranche B Letters of Credit issued by that Lender and the amount of any
         unreimbursed drawings under such Tranche B Letters of Credit (in each
         case net of any participations purchased by other Lenders in such
         Tranche B Letters of Credit or in any such unreimbursed drawings
         thereunder) plus (c) the aggregate amount of all participations
         purchased by that Lender in any outstanding Tranche B Letters of Credit
         or any unreimbursed drawings under any Tranche B Letters of Credit.

                  1.2. Certain References to Pooled Facility Lenders and
Collateral Agent.

                  Section 1 of the Intercreditor Agreement is hereby amended by
inserting the following new Section 1.3 at the end thereof:

                  "Section 1.3  Certain References.

                        (a) Each reference to "Collateral Agent" in Section 6.1
         (other than paragraph (g) thereof) shall be deemed to include the DIP
         Credit Agent.

                        (b) Each reference to a "Pooled Facility Lender" or the
         "Pooled Facility Lenders" in the definition of "Lenders" contained in
         this Agreement and each reference to a "Pooled Facility Lender" or the
         "Pooled Facility Lenders" in Section 4.1 of this Agreement shall be
         deemed to include each such Pooled Facility Lender in its capacity as a
         DIP Lender, if applicable. Notwithstanding anything to the contrary
         contained herein, no obligations owed to DIP Lenders or DIP Agents
         under the DIP Loan Documents shall constitute "Subordinated
         Obligations"."

                  1.3. Provisions Relating to Information.

                  Section 4.1 of the Intercreditor Agreement is hereby amended
by deleting it in its entirety and substituting therefor the following:

                  "Section 4.1 Information. In the event Collateral Agent
         proceeds to foreclose upon, collect, sell or otherwise dispose of or
         take any other action with respect to the Collateral, or any portion
         thereof, or to enforce any Collateral Document, or in the event
         Collateral Agent or DIP Credit Agent proposes to take any other action
         pursuant to this Agreement or requests instructions from the Secured
         Parties as provided herein, upon the request of Collateral Agent,
         Credit Agent or DIP Credit Agent, each of the following Parties agrees
         to promptly provide to Collateral Agent, Credit Agent or DIP Credit
         Agent, as applicable, the information described below:

                  (a) Credit Agent on behalf of Pooled Facility Lenders and
         Revolving Lenders agrees to promptly from time to time notify
         Collateral Agent and DIP Credit Agent of (i) the aggregate amount of
         principal of and interest on the Obligations as at such date as
         Collateral Agent or DIP Credit Agent may specify, (ii) the current
         Revolving Loan Commitment of each Revolving Lender under the Credit
         Agreement, the aggregate amount of all funded and unfunded
         participations under the Credit Agreement, the amounts due and payable
         under the Ratable Paydown Indemnity (upon notification from the
         relevant Opt-Out Lenders of a Realized Deficiency) and the amount of
         the Preferred Distribution, in each case as at such date as Collateral
         Agent or DIP Credit Agent may specify, and (iv) any payment received by
         Credit Agent to be applied to the principal of or interest on the
         Obligations. Credit Agent shall certify as to such amounts and
         Collateral Agent and DIP Credit Agent shall be entitled to rely
         conclusively upon such certification.

                  (b) DIP Credit Agent on behalf of DIP Lenders agrees to
         promptly from time to time notify Collateral Agent and Credit Agent of
         (i) the aggregate amount of principal of and interest on the DIP
         Obligations, the current commitments of each DIP Lender under the DIP
         Credit Agreement, and the aggregate amount of all funded and unfunded
         participations under the DIP Credit Agreement, in each case as at such
         date as Collateral Agent or Credit Agent may specify, and (ii) any
         payment received by DIP Credit Agent to be applied to the principal of
         or interest on the DIP Obligations. DIP Credit Agent shall certify as
         to such amounts and Collateral Agent and Credit Agent shall be entitled
         to rely conclusively upon such certification.

                  (c) Each Opt-Out Lender and Existing Opt-Out Facility Agent
         agrees to promptly from time to time notify Collateral Agent and DIP
         Credit Agent of (i) the aggregate amount of principal of and interest
         on the relevant Obligations arising under the relevant Opt-Out Facility
         as at such date as Collateral Agent or DIP Credit Agent may specify,
         (ii) the aggregate amount of all unfunded participations and
         commitments, and (iii) any payment received by such Opt-Out Lender or
         Existing Opt-Out Facility Agent to be applied to the principal of or
         interest on the Obligations. Each Opt-Out Lender and Existing Opt-Out
         Facility Agent shall certify as to such amounts and Collateral Agent
         and DIP Credit Agent shall be entitled to rely conclusively upon such
         certification.

                  (d) The Senior Debenture Trustee agrees, by acceptance of the
         benefits hereof, to promptly from time to time notify Collateral Agent
         of the outstanding principal amount of the Senior Debentures and the
         amount of accrued but unpaid interest thereon, at such date as
         Collateral Agent may specify. The Senior Debenture Trustee shall, or
         shall cause the registrar for the Senior Debentures to, certify as to
         such amount as reflected in the register maintained for such purpose by
         the Senior Debenture Trustee or such registrar, as the case may be, and
         Collateral Agent shall be entitled to rely conclusively upon such
         certification."

                  1.4. Provision Relating to Ratable Paydown Indemnity.

                  Section 5.2 of the Intercreditor Agreement is hereby amended
by deleting it in its entirety therefrom and substituting therefor the
following:

                  "Section 5.2 Ratable Paydown Indemnity. Borrowers and the
         relevant Opt-Out Lenders (or the relevant Existing Opt-Out Facility
         Agent) shall notify Collateral Agent and DIP Credit Agent of the
         existence and the amount of any Realized Deficiency as soon as
         Borrowers and such Opt-Out Lenders become aware of it. Upon receipt of
         such notice, Collateral Agent shall calculate the Realized Ratable
         Shares and Ratable Paydowns (if any) of the relevant Opt-Out Lenders
         (which calculations shall be delivered by the Collateral Agent to each
         other Creditor Party (with a copy to the Company) and unless the
         Collateral Agent shall have been notified by any Creditor Party in
         writing within five Business Days of receipt of such notice, such
         calculations shall be conclusive and binding) and Borrowers shall
         immediately be obligated to pay and indemnify each Opt Out Lender in
         the amount of such Opt-Out Lender's Ratable Paydown. It is understood
         and agreed that the Borrowers' obligation to pay the Ratable Paydown
         Indemnity as set forth herein shall only be due and payable if (i) a
         Realized Deficiency exists and (ii) the Pooled Facility Lenders and/or
         the Revolving Lenders have received a permanent cash paydown (which
         shall occur at any time the Pooled Facility Lenders and/or the
         Revolving Lenders receive cash in repayment of outstanding Obligations
         and there is no dollar for dollar increase in the Revolving Loan
         Commitments or at any time there is a permanent dollar for dollar
         reduction in the Revolving Loan Commitments) and/or the DIP Lenders
         have received a permanent cash paydown of funded amounts of Tranche B
         Facility Exposure (which shall occur at any time the DIP Lenders
         receive cash in repayment of outstanding honored drawings under Tranche
         B Letters of Credit). Notwithstanding anything to the contrary
         contained in this Agreement, (x) the Canadian Loss Sharing Lenders
         shall not at any time be entitled to any Ratable Paydown or any claim
         arising under the Ratable Paydown Indemnity, (y) no Opt-Out Lender
         shall be entitled to payments on account of the Opt-Out Facility
         Obligations if and to the extent that the sum of all such payments on
         account of the Opt-Out Facility Obligations to such Opt-Out Lender and
         all payments on account of the Ratable Paydown Indemnity to such
         Opt-Out Lender would exceed the aggregate Opt-Out Facility Exposure of
         such Opt-Out Lender, and (z) each Opt-Out Lender under the Anaheim Pond
         arena Opt-Out Facility hereby agrees to repay to the applicable Persons
         entitled to the same any payment made to such Opt-Out Lender that is
         subsequently determined to be contrary to the terms of the last proviso
         to the definition of "Ratable Paydown". Assuming the aggregate amount
         of the Pooled Facilities at such time is $469,264,742 and the aggregate
         amount of the Revolving Facility at such time is $19,297,717,
         immediately upon availability of the Tranche B Facility for the
         issuance of Tranche B Letters of Credit and after giving effect to the
         First Amendment the aggregate amount owed to the Opt-Out Lenders with
         respect to the Anaheim Pond arena Opt-Out Facility under the Ratable
         Paydown Indemnity would be $13,600,000."

                  1.5. Miscellaneous Provisions.

                  Section 7.1(f) of the Intercreditor Agreement is hereby
amended by deleting it in its entirety and substituting therefor the following:

                       "(f) The Collateral Agent may deem and treat the
         Secured Parties executing and delivering this Agreement, the First
         Amendment and the Senior Debenture Trustee as the "Secured Parties" for
         all purposes hereof unless and until (i) a notice of the assignment or
         transfer of any interest held by such Party shall have been filed with
         the Collateral Agent in accordance with the terms of the Credit
         Agreement, (ii) with respect to the Opt-Out Lenders, the Existing
         Opt-Out Facility Agents shall have so notified the Collateral Agent, or
         (iii) with respect to the DIP Lenders, the DIP Credit Agent shall have
         so notified the Collateral Agent. Company agrees that it will advise
         the Collateral Agent of any transfer by any Creditor Party of any
         Pooled Facility Exposure, Opt-Out Facility Exposure, Tranche A Loan
         Exposure or Tranche B Loan Exposure held by such Creditor Party and
         will, from time to time upon request of the Collateral Agent, deliver a
         list to the Collateral Agent (which shall be distributed by the
         Collateral Agent to each Creditor Party) setting forth, for the Pooled
         Facility Exposure, the Opt-Out Facility Exposure, the Tranche A Loan
         Exposure and the Tranche B Loan Exposure, the unpaid principal amount
         and holder thereof. The Collateral Agent may rely on such list unless,
         after the distribution thereof, the Collateral Agent is notified by a
         Secured Party that such information as set forth on such list is
         inaccurate."

         SECTION 2. BORROWER'S REPRESENTATIONS AND WARRANTIES

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

                  2.1. Corporate Power and Authority. Each Loan Party has all
requisite corporate power and authority to enter into this First Amendment and
to carry out the transactions contemplated by, and perform its obligations
under, the Intercreditor Agreement as amended by this First Amendment (the
"Amended Agreement").

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

                  2.3. No Conflict. The execution and delivery by each Loan
Party of this First Amendment and the performance by each Borrower of the
Amended Agreement do not and will not (i) violate any provision of any law or
any governmental rule or regulation applicable to any Loan Party or any of its
Subsidiaries, or the Certificate or Articles of Incorporation or Certificate of
Formation or Bylaws or Operating Agreement of any Loan Party or any of its
Subsidiaries or any order, judgment or decree of any court or other agency of
government binding on any Loan Party 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 indenture, mortgage, deed of trust, Intercreditor
Agreement or loan agreement, or any other material agreement, contract or
instrument to which any Loan Party or any of its Subsidiaries is a party or by
which it or any of its property or assets is bound or to which it may be subject
(each such indenture, mortgage, deed of trust, Intercreditor Agreement, loan
agreement, material agreement, contract or instrument, a "Contractual
Obligation"), (iii) result in or require the creation or imposition of any Lien
upon any of the properties or assets of any Loan Party 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 any Loan Party or any
of its Subsidiaries.

                  2.4. Governmental Consents. The execution and delivery by each
Loan Party of this First Amendment and the performance by each Borrower of the
Amended Agreement do not and will not require any registration with, consent or
approval of, or notice to, or other action to, with or by, any federal, state or
other governmental authority or regulatory body.

                  2.5. Binding Obligation. This First Amendment has been duly
executed and delivered by each Loan Party, and each of this First Amendment and
the Amended Agreement 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.

        SECTION 3. ACKNOWLEDGEMENT AND CONSENT

                  3.1. Loan Party Acknowledgements. Each Borrower and Subsidiary
Guarantor hereby acknowledges that such Loan Party has read this First Amendment
and consents to the terms hereof and further hereby confirms and agrees that,
notwithstanding the effectiveness of this First 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.

                  3.2. Borrower and Loan Party Acknowledgements. Borrowers and
Lenders hereby acknowledge that the obligations of Borrowers arising under
Sections 5.2 and 5.3 of the Amended Agreement are and shall be pre-Petition Date
secured obligations of the relevant Borrowers.

                  3.3. New Borrowers. Each New Borrower hereby acknowledges and
agrees that by executing and delivering this First Amendment it shall become a
Borrower under the Intercreditor Agreement and hereafter shall have the rights
and obligations of a Borrower thereunder. Each New Borrower agrees to be bound
by all of the terms of the Intercreditor Agreement as fully as if such New
Borrower was one of the original Borrowers party thereto.

         SECTION 4. MISCELLANEOUS

                  4.1. Reference to and Effect on the Intercreditor Agreement
and the Other Loan Documents.

                       A. On and after the effective date of any of the
         amendments contained herein, each reference in the Intercreditor
         Agreement to "this Agreement", "hereunder", "hereof", "herein" or words
         of like import referring to the Intercreditor Agreement, and each
         reference in the other Loan Documents to the "Intercreditor Agreement",
         "thereunder", "thereof" or words of like import referring to the
         Intercreditor Agreement shall mean and be a reference to the Amended
         Agreement.

                       B. Except as specifically amended by this First
         Amendment, the Intercreditor 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 First
         Amendment shall not, except as expressly provided herein, constitute a
         waiver of any provision of, or operate as a waiver of any right, power
         or remedy of any Agent, any DIP Agent, Collateral Agent, Credit Agent
         or any Lender, under the DIP Loan Documents, the Intercreditor
         Agreement or any of the other Loan Documents.

                  4.2. 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 Lenders and their
respective counsel (including, without limitation, O'Melveny & Myers LLP and
Ernst & Young Corporate Finance LLC) with respect to this First Amendment and
the documents and transactions contemplated hereby shall be for the account of
Borrowers.

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

                  4.4. Applicable Law. THIS FIRST 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.

                  4.5. Counterparts; Effectiveness. This First 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 First Amendment shall become
effective upon (i) the execution of a counterpart hereof by Requisite Lenders,
(ii) receipt by Company, Credit Agent and DIP Agent of written or telephonic
notification of such execution and authorization of delivery thereof, and (iii)
receipt by Credit Agent, for distribution (as appropriate) to DIP Agents and DIP
Lenders, of all reasonable and documented costs and expenses (including legal
fees and other out-of-pocket expenses) of DIP Agents and DIP Lenders incurred in
connection with this First Amendment and the transactions contemplated hereby,
including such fees and expenses of (a) O'Melveny & Myers LLP, counsel to DIP
Agents, (b) Ernst & Young Corporate Finance LLC, and (c) counsel to DIP Lenders
to the extent invoiced to Company prior to the DIP Closing Date.

                  4.6. Notice Addresses. For the purposes of the Intercreditor
Agreement, the addresses of the parties thereto (until notice of a change
thereof is delivered as provided in Section 7.1(a) of the Intercreditor
Agreement) shall be as set forth under each party's name on the signature pages
attached hereto.

                [Remainder of this page intentionally left blank]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this First 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
                                 -----------------------------------------------
                                  Name:  Jeffrey R. Horowitz, Esq.
                                  Title:  Authorized Officer

                              Each of the entities listed on Schedule A annexed
                              hereto

                              By: /s/ Jeffrey R. Horowitz
                                 -----------------------------------------------
                                  Name:  Jeffrey R. Horowitz, Esq.
                                  Title:  Authorized Officer

                              Each of the entities listed on Schedule B annexed
                              hereto

                              By: /s/ William J. Metzger
                                 -----------------------------------------------
                                  Name:  William J. Metzger
                                  Title:  Authorized Officer

                                  Notice Address for each Borrower:
                                           c/o Covanta Energy Group, Inc.
                                           40 Lane Road
                                           Fairfield, New Jersey  07007
                                           Attn:  Jeffrey Horowitz, Esq.

<PAGE>

SUBSIDIARY GUARANTORS::

                              Each of the entities listed on Schedule C annexed
                              hereto

                              By: /s/ Jeffrey R. Horowitz
                                 -----------------------------------------------
                                  Name:  Jeffrey R. Horowitz, Esq.
                                  Title:  Authorized Officer

                              Notice Address for each Subsidiary Guarantor:
                                       c/o Covanta Energy Group, Inc.
                                       40 Lane Road
                                       Fairfield, New Jersey  07007
                                       Attn:  Jeffrey Horowitz, Esq.

<PAGE>

                              Each of the entities named on Schedule D annexed
                              hereto

                              By: /s/ William J. Metzger
                                 -----------------------------------------------
                                  Name:  William J. Metzger
                                  Title:  Vice President and Treasurer

                              Notice Address for each Subsidiary Guarantor:
                                       c/o Covanta Energy Group, Inc.
                                       40 Lane Road
                                       Fairfield, New Jersey  07007
                                       Attn:  William Metzger

<PAGE>

AGENTS AND LENDERS:

                              BANK OF AMERICA, N.A.
                              as Administrative Agent and Collateral Agent and
                              as a Lender

                              By: /s/ Michael R. Heredia
                                 -----------------------------------------------
                                  Name:  Michael R. Heredia
                                  Title:  Managing Director

                              Notice Address:
                                       Attention:  Barry Flynn
                                       1 Independence Center
                                       101 North Tryon Street
                                       Charlotte, N.C. 28255

<PAGE>

                              DEUTSCHE BANK AG, NEW YORK BRANCH
                              As Documentation Agent and as a Lender

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

                              By: /s/ Mark B. Cohen
                                 -----------------------------------------------
                                  Name:  Mark B. Cohen, Managing Director
                                  Title:  Head of Workout

                              Notice Address:
                                       Attention:  Keith C. Braun
                                       Deutsche Bank AG
                                       New York Branch
                                       31 West 52nd St., 7th floor
                                       New York, NY  10019

<PAGE>

                              ABN AMRO BANK N.V.
                              as a Lender

                              By: /s/ Neil J. Bivona
                                 -----------------------------------------------
                                  Name:  Neil J. Bivona
                                  Title:  Vice President

                              By: /s/ Steven C. Wimpenny
                                 -----------------------------------------------
                                  Name:  Steven C. Wimpenny
                                  Title:  Group Senior Vice President

                              Notice Address:
                                       Attention:  Credit Administration
                                       ABN AMRO Bank N.V.
                                       208 South LaSalle Street, Suite 1500
                                       Chicago, IL  60604-1003

<PAGE>

                              BANK 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

                              By:
                                 -----------------------------------------------

                              Notice Address:
                                       Attention:  Jon Barnes
                                       Bank of America
                                       100 North Tyron Street
                                       Charlotte, NC  28255

<PAGE>

                              BANK OF MONTREAL,
                              as a Lender

                              By: /s/ Heather L. Turf
                                 -----------------------------------------------
                                  Name:  Heather L. Turf
                                  Title:  Director

                              Notice Address:
                                       Attention:  Heather Turf
                                       Bank of Montreal
                                       115 S. LaSalle Street, 12th Floor West
                                       Chicago, Il  60603

<PAGE>

                              THE BANK OF NOVA SCOTIA,
                              as a Lender

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

                              Notice Address:
                                       Attention:  Joseph J. Farricielli, Jr.
                                       The Bank of Nova Scotia
                                       One Liberty Plaza, 23rd Floor
                                       New York, NY  10006

<PAGE>

                              BAYERISHCE HYPO-UND VEREINSBANK AG,
                              as a Lender

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

                              By: /s/ C. Theodore Wolf
                                 -----------------------------------------------
                                  Name:  C. Theodore Wolf
                                  Title:  Director

                              Notice Address:
                                       Attention:  Salvatore Esposito
                                       Bayerische Hypo-und Vereinsbank AG
                                       105 E. 42nd Street
                                       New York, NY  10017

<PAGE>

                              BNP PARIBAS,
                              as a Lender

                              By: /s/ Barbara Eppolito
                                 -----------------------------------------------
                                  Name:  Barbara Eppolito
                                  Title:  Vice President

                              By: /s/ Kathryn Quinn
                                 -----------------------------------------------
                                  Name:  Kathryn Quinn
                                  Title:  Vice President

                              Notice Address:
                                       Attention:  Barbara Eppolito
                                       BNP Paribas
                                       787 Seventh Avenue
                                       New York, NY  10019

<PAGE>

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

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

                              By: /s/ Peter Doyle
                                 -----------------------------------------------
                                  Name:  Peter Doyle
                                  Title:  Vice President

                              Notice Address:
                                       Attention:  Robert Donohue
                                       Commerzbank AG
                                       2 World Financial Center
                                       New York, NY  10281

<PAGE>

                              CREDIT LYONNAIS NEW YORK BRANCH,
                              as a Lender

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

                              Notice Address:
                                       Attention:  James B. Hallock
                                       Credit Lyonnais New York Branch
                                       1391 Avenue of the Americas
                                       New York, NY  10019

<PAGE>

                              MIZUHO CORPORATION BANK, LTD., NEW YORK BRANCH,
                              as a Lender

                              By: /s/ Timothy White
                                 -----------------------------------------------
                                  Name:  Timothy White
                                  Title:  Senior Vice President

                              Notice Address:
                                       Attention:  David E. Lim
                                       Mizuho Corporate Bank, Ltd.
                                       New York Branch
                                       1633 Broadway 40th Floor
                                       New York, NY  10019

<PAGE>

                              WACHOVIA BANK, NATIONAL ASSOCIATION,
                              as a Lender

                              By: /s/ Joel Thomas
                                 -----------------------------------------------
                                  Name:  Joel Thomas
                                  Title:  Vice President

                              Notice Address:
                                       Attention:  Joel Thomas
                                       301 South College Street, DC-5
                                       Charlotte, North Carolina  28288

<PAGE>

                              US BANK NATIONAL ASSOCIATION (formerly known as
                              Firstar Bank, N.A.),
                              as a Lender

                              By: /s/ Alan R. Milster
                                 -----------------------------------------------
                                  Name:  Alan R. Milster
                                  Title:  Vice President

                              Notice Address:
                                       Attention:  Alan R. Milster
                                       Firstar Bank, N.A.
                                       7th Floor - Special Assets
                                       One Firstar Plaza
                                       Seventh & Washington
                                       St. Louis, MO  63101

<PAGE>

                              FLEET NATIONAL BANK,
                              as a Lender

                              By: /s/ Michael F. O'Neill
                                 -----------------------------------------------
                                  Name:  Michael F. O'Neill
                                  Title:  Senior Vice President

                              Notice Address:
                                       Attention:  Michael F. O'Neill
                                       Fleet National Bank
                                       100 Federal Street
                                       Mail Stop:  MA DE  10006A
                                       Boston, MA  02110

<PAGE>

                              HSBC BANK USA,
                              as a Lender

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

                              Notice Address:
                                       Attention:  Carol A. Kraus
                                       HSBC Bank USA
                                       140 Broadway
                                       New York, NY  10005

<PAGE>

                              THE HUNTINGTON NATIONAL BANK,
                              as a Lender

                              By: /s/ Thomas P. Krumel
                                 -----------------------------------------------
                                  Name:  Thomas P. Krumel
                                  Title:  Vice President

                              Notice Address:
                                       Attention:  Thomas P. Krumel
                                       The Huntington National Bank
                                       917 Euclid Avenue, CM66
                                       Cleveland, OH  44115

<PAGE>

                              THE INDUSTRIAL BANK OF JAPAN TRUST COMPANY,
                              as a Lender

                              By: /s/ Takuya Honjo
                                 -----------------------------------------------
                                  Name:  Takuya Honjo
                                  Title:  Deputy General Manager

                              Notice Address:
                                       Attention:  John Davies
                                       The Industrial Bank of Japan Trust
                                       Company
                                       1251 Avenue of the Americas
                                       New York, NY  10020

<PAGE>

                              LANDESBANK HESSEN-THURINGEN GIROZENTRALE,
                              as a Lender

                              By: /s/ Dorothy A. Lacher
                                 -----------------------------------------------
                                  Name:  Dorothy A. Lacher
                                  Title:  Senior Vice President
                                          Corporate Finance Division
                                          Structured Finance Department

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

                              Notice Address:
                                       Attention:  David A. Leech
                                       Landesbank Hessen-Thuringen Girozentrale
                                       420 Fifth Avenue, 24th Floor
                                       New York, NY  10018

<PAGE>

                              THE ROYAL BANK OF SCOTLAND, plc,
                              as a Lender

                              By: /s/ Graeme Hunter
                                 -----------------------------------------------
                                  Name:  Graeme Hunter
                                  Title:  Senior Vice President, Specialized
                                  Lending Services

                              Notice Address:
                                       Attention:  Graeme Hunter
                                       Specialized Lending Services
                                       10th Floor
                                       101 Park Avenue
                                       New York, NY  10178

<PAGE>

                              NATIONAL WESTMINISTER BANK PLC, New York and/or
                              Nassau Branch,
                              as a Lender

                              By: /s/ Graeme Hunter
                                 -----------------------------------------------
                                  Name:  Graeme Hunter
                                  Title:  Senior Vice President, Specialized
                                  Lending Services

                              Notice Address:
                                       Attention:  Graeme Hunter
                                       Specialized Lending Services
                                       10th Floor
                                       101 Park Avenue
                                       New York, NY  10178

<PAGE>

                              SANPAOLO IMI S.p.A.,
                              as a Lender

                              By: /s/ Carlo Persico
                                 -----------------------------------------------
                                  Name:  Carlo Persico
                                  Title:  GM

                              By: /s/ Robert Wurster
                                 -----------------------------------------------
                                  Name:  Robert Wurster
                                  Title:  SVP

                              Notice Address:
                                       Attention:  Robert Wurster
                                       San Paolo IMI S.p.A.
                                       245 Park Avenue, 35th Floor
                                       New York, NY  10167

<PAGE>

                              UFJ BANK LIMITED,
                              NEW YORK BRANCH
                              (formerly knows as The Sanwa Bank,Limited), as a
                              Lender

                              By: /s/ Nobuo Harima
                                 -----------------------------------------------
                                  Name:  Nobuo Harima
                                  Title:  Vice President

<PAGE>

                              THE SUMITOMO TRUST & BANKING CO., LTD.
                              NY BRANCH,
                              as a Lender

                              By: /s/ Elizabeth A. Quirk
                                 -----------------------------------------------
                                  Name:  Elizabeth A. Quirk
                                  Title:  Vice President

                              Notice Address:
                                       Attention:  Elizabeth A. Quirk
                                       The Sumitomo Trust & Banking Co., Ltd.
                                       NY Branch
                                       527 Madison Avenue
                                       New York, NY  10022

<PAGE>

                              SUNTRUST BANK,
                              as a Lender

                              By: /s/ Maria Mamilovich
                                 -----------------------------------------------
                                  Name:  Maria Mamilovich
                                  Title:  Director

                              Notice Address:
                                       Attention:  Maria Mamilovich
                                       SunTrust Bank
                                       711 Fifth Avenue, 16th Floor
                                       New York, NY  10022

<PAGE>

                              THE BANK OF NEW YORK,
                              as a Lender

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

                              Notice Address:
                                       Attention:  Peter W. Helt
                                       Bank of New York
                                       1 Wall Street, 16th Floor
                                       New York, NY  10286

<PAGE>

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

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

                              Notice Address:
                                       Attention:  Michael Lancia
                                       JPMorgan Chase Bank
                                       380 Madison Avenue
                                       Special Loan - 9
                                       New York, NY  10017

<PAGE>

                              THE TORONTO-DOMINION BANK,
                              as a Lender

                              By: /s/ Mark A. Baird
                                 -----------------------------------------------
                                  Name:  Mark A. Baird
                                  Title:  Manager Credit Administration

                              Notice Address:
                                       Attention:  Mark A. Baird
                                       Toronto Dominion (Texas), Inc.
                                       909 Fannin Street, 17th Floor
                                       Houston, TX  77010

<PAGE>

                              UBS AG, STAMFORD BRANCH,
                              as a Lender

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

                              By: /s/ David J. Kalal
                                 -----------------------------------------------
                                  Name:  David J. Kalal
                                  Title:  Executive Director
                                          Recovery Management

                              Notice Address:
                                       Attention:  Marie Haddad
                                       UBS AG, Stamford Branch
                                       677 Washington Blvd.
                                       Stamford, CT  06901

<PAGE>

                              WESTDEUTSCHE LANDESBANK GIROZENTRALE, NEW YORK
                              BRANCH,
                              as a Lender

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

                              By: /s/ Walter T. Duffy III
                                 -----------------------------------------------
                                  Name:  Walter T. Duffy III
                                  Title:  Associate Director

                              Notice Address:
                                       Attention:  Walter T. Duffy III
                                       Westdeutsche Landesbank Girozentrale
                                       1211 Avenue of the Americas
                                       New York, NY  10036EXHIBIT 10.1(n)
                                                                 ---------------

                               SUBSIDIARY GUARANTY

         This SUBSIDIARY GUARANTY is entered into as of April 1, 2002 by the
undersigned (each a "Guarantor", and together with any future Subsidiaries of
Company executing this Guaranty, being collectively referred to herein as the
"Guarantors") in favor of and for the benefit of BANK OF AMERICA, N.A., as
Administrative Agent for and representative of (in such capacity herein called
"Guarantied Party") the Lenders from time to time party to the Credit Agreement
referred to below.

                                    RECITALS

         Covanta Energy Corporation, a Delaware corporation ("Company"), and
certain subsidiaries of Company (collectively, Company and such subsidiaries of
Company are "Borrowers " and each a "Borrower"), have entered into that certain
Debtor-in-Possession Credit Agreement dated as of April 1, 2002 with the
financial institutions listed on the signature pages thereof as Lenders,
Guarantied Party, as Administrative Agent for Lenders, and Deutsche Bank AG, New
York Branch, as Documentation Agent (said Debtor-in-Possession Credit Agreement,
as it may heretofore have been and as it may hereafter be amended, supplemented
or otherwise modified from time to time, being the "Credit Agreement";
capitalized terms defined therein and not otherwise defined herein being used
herein as therein defined).

         Guarantied Party and Lenders are sometimes referred to herein as
"Beneficiaries".

         Pursuant to the Credit Agreement, Borrowers and the Lenders have agreed
that the Lenders shall provide, subject to the terms and conditions contained in
the Credit Agreement, debtor-in-possession revolving credit facilities for the
Borrowers to fund working capital and general corporate purposes and to make
certain other payments during the Chapter 11 Cases, and thus the Guarantied
Obligations (as hereinafter defined) are being incurred for and will inure to
the benefit of Guarantors (which benefits are hereby acknowledged).

         Guarantors are willing irrevocably and unconditionally to guaranty such
obligations of Borrowers.

         NOW, THEREFORE based upon the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
in order to induce Lenders and Guarantied Party to make Loans and other
extensions of credit under the Credit Agreement, Guarantors hereby agree as
follows:

         Guaranty. (a) In order to induce Lenders to extend credit to Borrowers
pursuant to the Credit Agreement, Guarantors jointly and severally irrevocably
and unconditionally guaranty, as primary obligors and not merely as sureties,
the due and punctual payment in full of all Guarantied Obligations (as
hereinafter defined) when the same shall become due, whether at stated maturity,
by acceleration, demand or otherwise (including amounts that would become due
but for the operation of the automatic stay under Section 362(a) of the
Bankruptcy Code). The term "Guarantied Obligations " is used herein in its most
comprehensive sense and includes, without limitation, any and all Obligations of
Borrowers, including, without limitation, those arising under successive
borrowing transactions under the

         Credit Agreement which shall either continue the Obligations of
Borrowers or from time to time renew them after they have been satisfied.

         Each Guarantor acknowledges that a portion of the Loans may be advanced
to it, that Letters of Credit may be issued for the benefit of its business, and
that the Guarantied Obligations with respect to the Credit Agreement and the
other Loan Documents are being incurred for and will inure to its benefit.

         Any interest, fees, costs, expenses or other charges on any portion of
the Guarantied Obligations that accrue after the commencement of any proceeding,
voluntary or involuntary, involving the bankruptcy, insolvency, receivership,
reorganization, liquidation or arrangement of Borrowers or of Company and/or its
Subsidiaries, as the case may be, including, without limitation, accruals
permitted under Section 506(b) of the Bankruptcy Code (or, if interest, fees,
costs, expenses or other charges on any portion of the Guarantied Obligations
cease to accrue by operation of law by reason of the commencement of said
proceeding, such interest as would have accrued on such portion of the
Guarantied Obligations if said proceeding had not been commenced) shall be
included in the Guarantied Obligations because it is the intention of each
Guarantor and Guarantied Party that the Guarantied Obligations should be
determined without regard to any rule of law or order that may relieve Borrowers
or of Company and/or its Subsidiaries, as the case may be, of any portion of
such Guarantied Obligations.

         In the event that all or any portion of the Guarantied Obligations is
paid by Borrowers or of Company and/or its Subsidiaries, as the case may be, the
obligations of each Guarantor hereunder shall continue and remain in full force
and effect or be reinstated, as the case may be, in the event that all or any
part of such payment(s) is rescinded or recovered directly or indirectly from
Guarantied Party or any other Beneficiary as a preference, fraudulent transfer
or otherwise, and any such payments that are so rescinded or recovered shall
constitute Guarantied Obligations.

         Subject to the other provisions of this Section 1, upon the failure of
Borrowers or of Company and/or its Subsidiaries, as the case may be, to pay any
of the Guarantied Obligations when and as the same shall become due, each
Guarantor will upon demand pay, or cause to be paid, in cash, to Guarantied
Party for the ratable benefit of Beneficiaries, an amount equal to the aggregate
of the unpaid Guarantied Obligations.

         (b) Anything contained in this Guaranty to the contrary
notwithstanding, the obligations of each Guarantor under this Guaranty shall be
limited to a maximum aggregate amount equal to the largest amount that would not
render its obligations hereunder subject to avoidance as a fraudulent transfer
or conveyance under Section 548 of the Bankruptcy Code or any applicable
provisions of comparable state law (collectively, the " Fraudulent Transfer Laws
"), in each case after giving effect to all other liabilities of such Guarantor,
contingent or otherwise, that are relevant under the Fraudulent Transfer Laws
(specifically excluding, however, any liabilities of such Guarantor (x) in
respect of intercompany indebtedness to Borrowers or other affiliates of
Borrowers to the extent that such indebtedness would be discharged in an amount
equal to the amount paid by such Guarantor hereunder and (y) under any guaranty
of Subordinated Indebtedness which guaranty contains a limitation as to maximum
amount similar to that set forth in this Section 1(b), pursuant to which the
liability of such Guarantor hereunder is included in the liabilities taken into
account in determining such maximum amount) and after giving effect as assets to
the value (as determined under the applicable provisions of the Fraudulent
Transfer Laws) of any rights to subrogation, reimbursement, indemnification or
contribution of such Guarantor pursuant to applicable law or pursuant to the
terms of any agreement.

         (c) Each Guarantor under this Guaranty, and each guarantor under other
guaranties, if any, relating to the Credit Agreement (the "Related Guaranties")
that contain a contribution provision similar to that set forth in this Section
1(c), together desire to allocate among themselves (collectively, the
"Contributing Guarantors "), in a fair and equitable manner, their obligations
arising under this Guaranty and the Related Guaranties. Accordingly, in the
event any payment or distribution is made on any date by a Guarantor under this
Guaranty or a guarantor under a Related Guaranty, each such Guarantor or such
other guarantor shall be entitled to a contribution from each of the other
Contributing Guarantors in the maximum amount permitted by law so as to maximize
the aggregate amount of the Guarantied Obligations paid to Beneficiaries.

         Guaranty Absolute; Continuing Guaranty. The obligations of each
Guarantor hereunder are irrevocable, absolute, independent and unconditional and
shall not be affected by any circumstance which constitutes a legal or equitable
discharge of a guarantor or surety other than payment in full of the Guarantied
Obligations. In furtherance of the foregoing and without limiting the generality
thereof, each Guarantor agrees that: (a) this Guaranty is a guaranty of payment
when due and not of collectibility; (b) Guarantied Party may enforce this
Guaranty upon the occurrence of an Event of Default under the Credit Agreement
or the occurrence of an early termination date notwithstanding the existence of
any dispute between Borrowers and any Beneficiary with respect to the existence
of such event; (c) the obligations of each Guarantor hereunder are independent
of the obligations of Borrowers under the Loan Documents, and the obligations of
any other Guarantor and a separate action or actions may be brought and
prosecuted against each Guarantor whether or not any action is brought against
Borrowers or any of such other Guarantors and whether or not Borrowers are
joined in any such action or actions; and (d) a payment of a portion, but not
all, of the Guarantied Obligations by one or more Guarantors shall in no way
limit, affect, modify or abridge the liability of such or any other Guarantor
for any portion of the Guarantied Obligations that has not been paid. This
Guaranty is a continuing guaranty and shall be binding upon each Guarantor and
its successors and assigns, and each Guarantor irrevocably waives any right to
revoke this Guaranty as to future transactions giving rise to any Guarantied
Obligations.

         Actions by Beneficiaries. Any Beneficiary may from time to time,
subject to the terms and conditions in the Credit Agreement, without notice or
demand and without affecting the validity or enforceability of this Guaranty or
giving rise to any limitation, impairment or discharge of any Guarantor's
liability hereunder, (a) renew, extend, accelerate or otherwise change the time,
place, manner or terms of payment of the Guarantied Obligations, (b) settle,
compromise, release or discharge, or accept or refuse any offer of performance
with respect to, or substitutions for, the Guarantied Obligations or any
agreement relating thereto and/or subordinate the payment of the same to the
payment of any other obligations, (c) request and accept other guaranties of the
Guarantied Obligations and take and hold security for the payment of this
Guaranty or the Guarantied Obligations, (d) release, exchange, compromise,
subordinate or modify, with or without consideration, any security for payment
of the Guarantied Obligations, any other guaranties of the Guarantied
Obligations, or any other obligation of any Person with respect to the
Guarantied Obligations, (e) enforce and apply any security now or hereafter held
by or for the benefit of any Beneficiary in respect of this Guaranty or the
Guarantied Obligations and direct the order or manner of sale thereof, or
exercise any other right or remedy that Guarantied Party or the other
Beneficiaries, or any of them, may have against any such security, as Guarantied
Party in its discretion may determine consistent with the Credit Agreement and
any applicable Loan Documents, including foreclosure on any such security
pursuant to one or more judicial or nonjudicial sales, whether or not every
aspect of any such sale is commercially reasonable, and (f) exercise any other
rights available to Guarantied Party or the other Beneficiaries, or any of them,
under the Loan Documents.

         No Discharge. This Guaranty and the obligations of Guarantors hereunder
shall be valid and enforceable and shall not be subject to any limitation,
impairment or discharge for any reason (other than payment in full in cash of
the Guarantied Obligations), including without limitation the occurrence of any
of the following, whether or not any Guarantor shall have had notice or
knowledge of any of them: (a) any failure to assert or enforce or agreement not
to assert or enforce, or the stay or enjoining, by order of court, by operation
of law or otherwise, of the exercise or enforcement of, any claim or demand or
any right, power or remedy with respect to the Guarantied Obligations or any
agreement relating thereto, or with respect to any other guaranty of or security
for the payment of the Guarantied Obligations, (b) any waiver or modification
of, or any consent to departure from, any of the terms or provisions of the
Credit Agreement, any of the other Loan Documents or any agreement or instrument
executed pursuant thereto, or of any other guaranty or security for the
Guarantied Obligations, (c) the Guarantied Obligations, or any agreement rela
ting thereto, at any time being found to be illegal, invalid, unenforceable or
disallowed in any respect (including, without limitation, pursuant to Section
502 of the Bankruptcy Code), (d) the application of payments received from any
source to the payment of indebtedness other than the Guarantied Obligations,
even though Guarantied Party or the other Beneficiaries, or any of them, might
have elected to apply such payment to any part or all of the Guarantied
Obligations, (e) any failure to perfect or continue perfection of a security
interest in any collateral which secures any of the Guarantied Obligations, (f)
any defenses, set-offs or counterclaims which Borrowers may assert against
Guarantied Party or any Beneficiary in respect of the Guarantied Obligations,
including but not limited to failure of consideration, breach of warranty,
payment, statute of frauds, statute of limitations, accord and satisfaction and
usury, and (g) any other act or thing or omission, or delay to do any other act
or thing, which may or might in any manner or to any extent vary the risk of a
Guarantor as an obligor in respect of the Guarantied Obligations.

         Waivers. Each Guarantor waives, for the benefit of Beneficiaries: (a)
any right to require Guarantied Party or the other Beneficiaries, as a condition
of payment or performance by such Guarantor, to (i) proceed against Borrowers,
any other guarantor (including any other Guarantor) of the Guarantied
Obligations or any other Person, (ii) proceed against or exhaust any security
held from Borrowers, any other guarantor of the Guarantied Obligations or any
other Person, (iii) proceed against or have resort to any balance of any deposit
account or credit on the books of any Beneficiary in favor of Borrowers or any
other Person, or (iv) pursue any other remedy in the power of any Beneficiary;
(b) any defense arising by reason of the incapacity, lack of authority or any
disability or other defense of Borrowers including, without limitation, any
defense based on or arising out of the lack of validity or the unenforceability
of the Guarantied Obligations or any agreement or instrument relating thereto or
by reason of the cessation of the liability of Borrowers from any cause other
than payment in full of the Guarantied Obligations; (c) any defense based upon
any statute or rule of law which provides that the obligation of a surety must
be neither larger in amount nor in other respects more burdensome than that of
the principal; (d) any defense based upon Guarantied Party's or any other
Beneficiary's errors or omissions in the administration of the Guarantied
Obligations, except behavior that amounts to bad faith; (e) (i) any principles
or provisions of law, statutory or otherwise, that are or might be in conflict
with the terms of this Guaranty and any legal or equitable discharge of such
Guarantor's obligations hereunder, (ii) the benefit of any statute of
limitations affecting such Guarantor's liability hereunder or the enforcement
hereof, (iii) any rights to set-offs, recoupments and counterclaims, and (iv)
promptness, diligence and any requirement that any Beneficiary protect, secure,
perfect or insure any Lien or any property subject thereto; (f) notices,
demands, presentments, protests, notices of protest, notices of dishonor and
notices of any action or inaction, including acceptance of this Guaranty,
notices of default under the Credit Agreement, notices of any renewal, extension
or modification of the Guarantied Obligations or any agreement related thereto,
notices of any extension of credit to Borrowers and notices of any of the
matters referred to in Section 3 and 4 hereof and any right to consent to any
thereof; and (g) to the fullest extent permitted by law, any defenses or
benefits that may be derived from or afforded by law which limit the liability
of or exonerate guarantors or sureties, or which may conflict with the terms of
this Guaranty.

         Guarantors' Rights of Subrogation, Contribution, Etc.; Subordination of
Other Obligations. Each Guarantor waives any claim, right or remedy, direct or
indirect, that such Guarantor now has or may hereafter have against Borrowers or
any of its assets in connection with this Guaranty or the performance by such
Guarantor of its obligations hereunder, in each case whether such claim, right
or remedy arises in equity, under contract, by statute under common law or
otherwise and including without limitation (a) any right of subrogation,
reimbursement or indemnification that such Guarantor now has or may hereafter
have against Borrowers, (b) any right to enforce, or to participate in, any
claim, right or remedy that any Beneficiary now has or may hereafter have
against Borrowers, and (c) any benefit of, and any right to participate in, any
collateral or security now or hereafter held by any Beneficiary. In addition,
until the Guarantied Obligations shall have been paid in full in cash and the
Commitments shall have terminated and all Letters of Credit shall have expired
or been cancelled, each Guarantor shall withhold exercise of any right of
contribution such Guarantor may have against any other guarantor of any of the
Guarantied Obligations. Each Guarantor further agrees that, to the extent the
waiver or agreement to withhold the exercise of its rights of subrogation,
reimbursement, indemnification and contribution as set forth herein is found by
a court of competent jurisdiction to be void or voidable for any reason, any
rights of subrogation, reimbursement or indemnification such Guarantor may have
against Borrowers or against any collateral or security, and any rights of
contribution such Guarantor may have against any such other guarantor, shall be
junior and subordinate to any rights Guarantied Party or the other Beneficiaries
may have against Borrowers, to all right, title and interest Guarantied Party or
the other Beneficiaries may have in any such collateral or security, and to any
right Guarantied Party or the other Beneficiaries may have against such other
guarantor.

         Any indebtedness of Borrowers now or hereafter held by any Guarantor is
subordinated in right of payment to the Guarantied Obligations, and any such
indebtedness of Borrowers to a Guarantor collected or received by such Guarantor
after an Event of Default has occurred and is continuing, and any amount paid to
a Guarantor on account of any subrogation, reimbursement, indemnification or
contribution rights referred to in the preceding paragraph when all Guarantied
Obligations have not been paid in full in cash, shall be held in trust for
Guarantied Party on behalf of Beneficiaries and shall forthwith be paid over to
Guarantied Party for the benefit of Beneficiaries to be credited and applied
against the Guarantied Obligations.

         Expenses. Guarantors jointly and severally agree to pay, or cause to be
paid, on demand, and to save Guarantied Party and the other Beneficiaries
harmless against liability for, (i) any and all costs and expenses (including
fees and disbursements of counsel and allocated costs of internal counsel)
incurred or expended by Guarantied Party or any other Beneficiary in connection
with the enforcement of or preservation of any rights under this Guaranty and
(ii) any and all costs and expenses (including those arising from rights
indemnification) required to be paid by Guarantors under the provisions of any
other Loan Document, together with any and all interest (at the default rate set
forth in subsection 2.2E of the Credit Agreement) that shall accrue on unpaid
costs and expenses referred to in clause (i) and (ii) hereof (to the extent
permitted by applicable law).

         Financial Condition of Borrowers. No Beneficiary shall have any
obligation, and each Guarantor waives any duty on the part of any Beneficiary,
to disclose or discuss with such Guarantor its assessment, or such Guarantor's
assessment, of the financial condition of Borrowers or any matter or fact
relating to the business, operations or condition of Borrowers. Each Guarantor
has adequate means to obtain information from Borrowers on a continuing basis
concerning the financial condition of Borrowers and their ability to perform
their obligations under the Loan Documents, and each Guarantor assumes the
responsibility for being and keeping informed of the financial condition of
Borrowers and of all circumstances bearing upon the risk of nonpayment of the
Guarantied Obligations.

         Representations and Warranties. Each Guarantor makes, for the benefit
of Beneficiaries, each of the representations and warranties made in the Credit
Agreement by Borrowers as to such Guarantor, its assets, financial condition,
operations, organization, legal status, business and the Loan Documents to which
it is a party.

         Covenants. Each Guarantor agrees that, so long as any part of the
Guaranteed Obligations shall remain unpaid, any Letter of Credit shall be
outstanding, or any Lender shall have any Commitment, such Guarantor will,
unless Requisite Lenders shall otherwise consent in writing, perform or observe,
and cause its Subsidiaries to perform or observe, all of the terms, covenants
and agreements that the Loan Documents state that Borrowers are to cause a
Guarantor and such Subsidiaries to perform or observe.

         Set Off. In addition to any other rights any Beneficiary may have under
law or in equity, if any amount shall at any time be due and owing by a
Guarantor to any Beneficiary under this Guaranty, such Beneficiary is authorized
at any time or from time to time, without notice (any such notice being
expressly waived), to set off and to appropriate and to apply any and all
deposits (general or special, including but not limited to indebtedness evidence
by certificates of deposit, whether matured or unmatured) and any other
indebtedness of such Beneficiary owing to a Guarantor and any other property of
such Guarantor held by a Beneficiary to or for the credit or the account of such
Guarantor against and on account of the Guarantied Obligations and liabilities
of such Guarantor to any Beneficiary under this Guaranty.

         Taxes and Set-off by Guarantors. All payments to be made by the
Guarantors hereunder will be made without set-off or counterclaim and without
deduction for any taxes, levies, duties, fees, deductions, withholdings,
restrictions or conditions of any nature whatsoever. If at any time any
applicable law, regulation or international agreement requires any Guarantor to
make any such deduction or withholding from any such payment, the sum due from
such Guarantor with respect to such payment will be increased to the extent
necessary to ensure that, after the making of such deduction or withholding,
each Lender receives a net sum equal to the sum which it would have received had
no deduction or withholding been required.

         Discharge of Guaranty Upon Sale of Guarantor. If all of the stock of a
Guarantor or any of its successors in interest under this Guaranty shall be sold
or otherwise disposed of (including by merger or consolidation) in a sale not
prohibited by the Credit Agreement or otherwise consented to by Lenders, the
obligations of such Guarantor or such successor in interest, as the case may be,
hereunder shall automatically be discharged and released without any further
action by any Beneficiary or any other Person effective as of the time of such
sale; provided that, if the sale of such stock constitutes an Asset Sale as a
condition precedent to such discharge and release, Guarantied Party shall have
received evidence satisfactory to it that arrangements satisfactory to it have
been made for delivery to Guarantied Party of the Net Asset Sale Proceeds of
such Asset Sale as required by the Credit Agreement.

         Amendments and Waivers. No amendment, modification, termination or
waiver of any provision of this Guaranty, and no consent to any departure by any
Guarantor therefrom, shall in any event be effective without the written
concurrence of Guarantied Party and, in the case of any such amendment or
modification, Guarantors. Any such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which it was given.

         Miscellaneous. It is not necessary for Beneficiaries to inquire into
the capacity or powers of any Guarantor or Borrowers or the officers, directors
or any agents acting or purporting to act on behalf of any of them.

         The rights, powers and remedies given to Beneficiaries by this Guaranty
are cumulative and shall be in addition to and independent of all rights, powers
and remedies given to Beneficiaries by virtue of any statute or rule of law or
in any of the Loan Documents or any agreement between one or more Guarantors and
one or more Beneficiaries or between Borrowers and one or more Beneficiaries.
Any forbearance or failure to exercise, and any delay by any Beneficiary in
exercising, any right, power or remedy hereunder shall not impair any such
right, power or remedy or be construed to be a waiver thereof, nor shall it
preclude the further exercise of any such right, power or remedy.

         In case any provision in or obligation under this Guaranty shall be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

         THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF GUARANTORS, GUARANTIED
PARTY AND THE OTHER BENEFICIARIES 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.

         This Guaranty shall inure to the benefit of Beneficiaries and their
respective successors and assigns.

         ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY GUARANTOR ARISING OUT OF
OR RELATING TO THIS GUARANTY MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF
COMPETENT JURISDICTION IN THE STATE OF NEW YORK, AND BY EXECUTION AND DELIVERY
OF THIS GUARANTY EACH GUARANTOR ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE
AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS AND IRREVOCABLY
AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS
GUARANTY. Each Guarantor agrees that service of all process in any such
proceeding in any such court may be made by registered or certified mail, return
receipt requested, to such Guarantor at its address set forth below its
signature hereto, such service being acknowledged by such Guarantor to be
sufficient for personal jurisdiction in any action against such Guarantor in any
such court and to be otherwise effective and binding service in every respect.
Nothing herein shall affect the right to serve process in any other manner
permitted by law or shall limit the right of Guarantied Party or any Beneficiary
to bring proceedings against such Guarantor in the courts of any other
jurisdiction.

         EACH GUARANTOR AND, BY ITS ACCEPTANCE OF THE BENEFITS HEREOF,
GUARANTIED PARTY EACH AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS GUARANTY. The
scope of this waiver is intended to be all-encompassing of any and all disputes
that may be filed in any court and that relate to the subject matter of this
transaction, including without limitation contract claims, tort claims, breach
of duty claims and all other common law and statutory claims. Each Guarantor
and, by its acceptance of the benefits hereof, Guarantied Party each (i)
acknowledges that this waiver is a material inducement for such Guarantor and
Guarantied Party to enter into a business relationship, that such Guarantor and
Guarantied Party have already relied on this waiver in entering into this
Guaranty or accepting the benefits thereof, as the case may be, and that each
will continue to rely on this waiver in their related future dealings, and (ii)
further warrants and represents that each has reviewed this waiver with its
legal counsel and that each knowingly and voluntarily waives its jury trial
rights following consultation with legal counsel. THIS WAIVER IS IRREVOCABLE,
MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
OF THIS GUARANTY. In the event of litigation, this Guaranty may be filed as a
written consent to a trial by the court.

         Additional Guarantors . The initial Guarantor(s) hereunder shall be
such of the Subsidiaries of Borrowers as are signatories hereto on the date
hereof. From time to time subsequent to the date hereof, Subsidiaries of
Borrowers shall become parties hereto, in accordance with and subject to
subsection 6.8A of the Credit Agreement, as additional Guarantors (each an
"Additional Guarantor"), by executing a counterpart of this Guaranty. A form of
such a counterpart is attached as Exhibit A. Upon delivery of any such
counterpart to Guarantied Party, notice of which is hereby waived by Guarantors,
each such Additional Guarantor shall be a Guarantor and shall be as fully a
party hereto as if such Additional Guarantor were an original signatory hereof.
Each Guarantor expressly agrees that its obligations arising hereunder shall not
be affected or diminished by the addition or release of any other Guarantor
hereunder, nor by any election of the Guarantied Party not to cause any
Subsidiary of Borrowers to become an Additional Guarantor hereunder. This
Guaranty shall be fully effective as to any Guarantor that is or becomes a party
hereto regardless of whether any other Person becomes or fails to become or
ceases to be a Guarantor hereunder.

         Counterparts; Effectiveness. This Guaranty may be executed in any
number of counterparts and by the different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original for all purposes; but all such counterparts together shall
constitute but one and the same instrument. This Guaranty shall become effective
as to each Guarantor upon the execution of a counterpart hereof by such
Guarantor (whether or not a counterpart hereof shall have been executed by any
other Guarantor) and receipt by the Guaranteed Party of written or telephonic
notification of such execution and authorization of delivery thereof.

                           Guarantied Party as Agent.

         Guarantied Party has been appointed to act as Guarantied Party
hereunder by Lenders. Guarantied Party shall be obligated, and shall have the
right hereunder, to make demands, to give notices, to exercise or refrain from
exercising any rights, and to take or refrain from taking any action, solely in
accordance with this Guaranty and the Credit Agreement.

         Guarantied Party shall at all times be the same Person that is
Administrative Agent under the Credit Agreement. Written notice of resignation
by Administrative Agent pursuant to subsection 9.5 of the Credit Agreement shall
also constitute notice of resignation as Guarantied Party under this Guaranty;
removal of Administrative Agent pursuant to subsection 9.5 of the Credit
Agreement shall also constitute removal as Guarantied Party under this Guaranty;
and appointment of a successor Administrative Agent pursuant to subsection 9.5
of the Credit Agreement shall also constitute appointment of a successor
Guarantied Party under this Guaranty. Upon the acceptance of any appointment as
Administrative Agent under subsection 9.5 of the Credit Agreement by successor
Administrative Agent, that successor Administrative Agent shall thereupon
succeed to become vested with all the rights, powers, privileges and duties of
the retiring or removed Guarantied Party under this Guaranty, and the retiring
or removed Guarantied Party under this Guaranty shall promptly (i) transfer to
such successor Guarantied Party all sums held hereunder, together with all
records and other documents necessary or appropriate in connection with the
performance of the duties of the successor Guarantied Party under this Guaranty,
and (ii) take such other actions as may be necessary or appropriate in
connection with the assignment to such successor Guarantied Party of the rights
created hereunder, whereupon such retiring or removed Guarantied Party shall be
discharged from its duties and obligations under this Guaranty. After any
retiring or removed Guarantied Party's resignation or removal hereunder as
Guarantied Party, the provisions of this Guaranty shall inure to its benefits as
to any actions taken or omitted to be taken by it under this Guaranty while it
was Guarantied Party hereunder.

                  [Remainder of page intentionally left blank.]

<PAGE>

         IN WITNESS WHEREOF, each Guarantor (and Guarantied Party solely for the
purposes of the waiver of the right to jury trial contained in Section 15) has
caused this Guaranty to be duly executed and delivered by its respective officer
thereunto duly authorized as of the date first written above.

                              Each of the entities listed on Schedule A annexed
                              hereto

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

                              Each of the entities listed on Schedule B annexed
                              hereto

                              By: /s/ William J. Metzger
                                 -----------------------------------------------
                                  Name:   William J. Metzger
                                  Title:  Authorized Officer

                              Notice Address:

                                  c/o Covanta Energy Group, Inc.
                                  40 Lane Road
                                  Fairfield, New Jersey  07007
                                  Attn:  Jeffrey Horowitz, Esq.

<PAGE>

                              BANK OF AMERICA, N.A.
                                  as Guarantied Party

                              By: /s/ Michael R. Heredia
                                 -----------------------------------------------
                                  Name:   Michael R. Heredia
                                  Title:  Managing Director

                              Notice Address:
                                       Attention:  Barry Flynn
                                       1 Independence Center
                                       101 North Tryon Street
                                       Charlotte, NC  28255

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]