Document:

Pledge Agreement, dated as of March 28, 2012

 Exhibit 10.3 
 EXECUTION VERSION 
 PLEDGE AGREEMENT 

dated as of March 28, 2012 
 between 
 COVANTA HOLDING CORPORATION 

and 

BANK OF AMERICA, N.A., 
 as Collateral Agent 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	PAGE	 
	 SECTION 1.
	 	DEFINITIONS; GRANT OF SECURITY.	  	 	1	  
	 1.1  
	 	General Definitions	  	 	1	  
	 1.2  
	 	Definitions; Interpretation	  	 	2	  
	 SECTION 2.
	 	GRANT OF SECURITY.	  	 	3	  
	 2.1  
	 	Grant of Security	  	 	3	  
	 SECTION 3.
	 	SECURITY FOR OBLIGATIONS; PLEDGOR REMAINS LIABLE.	  	 	3	  
	 3.1  
	 	Security for Obligations	  	 	3	  
	 3.2  
	 	Continuing Liability Under Collateral	  	 	3	  
	 SECTION 4.
	 	REPRESENTATIONS AND WARRANTIES AND COVENANTS.	  	 	4	  
	 4.1  
	 	Generally	  	 	4	  
	 4.2  
	 	Pledged Equity Interests	  	 	5	  
	 SECTION 5.
	 	FURTHER ASSURANCES.	  	 	8	  
	 5.1  
	 	Further Assurances	  	 	8	  
	 SECTION 6.
	 	COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT.	  	 	8	  
	 6.1  
	 	Power of Attorney	  	 	8	  
	 6.2  
	 	No Duty on the Part of Collateral Agent or Secured Parties	  	 	9	  
	 SECTION 7.
	 	REMEDIES.	  	 	9	  
	 7.1  
	 	Generally	  	 	9	  
	 7.2  
	 	Application of Proceeds	  	 	11	  
	 7.3  
	 	Cash Proceeds	  	 	12	  
	 SECTION 8.
	 	COLLATERAL AGENT.	  	 	12	  
	 SECTION 9.
	 	CONTINUING SECURITY INTEREST; TRANSFER OF LOANS.	  	 	13	  
	 SECTION 10.
	 	STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM.	  	 	13	  
	 SECTION 11.
	 	MISCELLANEOUS.	  	 	13	  
		
	 SCHEDULE 4.1 — GENERAL INFORMATION
	  			
		
	 SCHEDULE 4.2 — PLEDGED EQUITY INTERESTS
	  			
		
	 EXHIBIT A — PLEDGE SUPPLEMENT
	  			

  
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 This PLEDGE AGREEMENT, dated as of March 28, 2012 (this
“Agreement”), between COVANTA HOLDING CORPORATION (the “Pledgor”) and BANK OF AMERICA, N.A., as collateral agent for the Secured Parties (as herein defined) (in such capacity as collateral
agent, the “Collateral Agent”). 
 RECITALS: 

WHEREAS, reference is made to that certain Credit and Guaranty Agreement, dated as of the date hereof (as it may be amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among COVANTA ENERGY CORPORATION, a Delaware corporation (“Company”), Pledgor, CERTAIN SUBSIDIARIES OF
COMPANY, as guarantors, the Lenders party thereto from time to time (the “Lenders”), BANK OF AMERICA, N.A., as Administrative Agent, Collateral Agent and Issuing Bank, MORGAN STANLEY SENIOR FUNDING, INC., as
Syndication Agent, and BARCLAYS BANK PLC, CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK and JPMORGAN CHASE BANK, N.A. as Co-Documentation Agents; 
 WHEREAS, subject to the terms and conditions of the Credit Agreement, certain Credit Parties may enter into one or more Permitted Hedge Agreements and/or Permitted Cash Management Agreements with
one or more Lender Counterparties; and 
 WHEREAS, in consideration of the extensions of credit and other accommodations
of Lenders and Lender Counterparties as set forth in the Credit Agreement, the Permitted Hedge Agreements and the Permitted Cash Management Agreements, respectively, the Pledgor has agreed to secure the Credit Parties’ obligations under the
Credit Documents, the Permitted Hedge Agreements and the Permitted Cash Management Agreements as set forth herein; 

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the Pledgor
and the Collateral Agent agree as follows: 
 SECTION 1. DEFINITIONS; GRANT OF SECURITY. 

1.1   General Definitions. In this Agreement, the following terms shall have the following meanings: 

“Agreement” shall have the meaning set forth in the preamble. 

“Cash Proceeds” shall have the meaning assigned in Section 7.3. 

“Collateral” shall have the meaning assigned in Section 2.1. 

“Collateral Agent” shall have the meaning set forth in the preamble. 

“Company” shall have the meaning set forth in the recitals. 

“Credit Agreement” shall have the meaning set forth in the recitals. 

“Lender” shall have the meaning set forth in the recitals. 

 “Permitted Liens” shall have the meaning assigned in
Section 4.1(a)(i). 
 “Pledge Supplement” shall mean any supplement to this Agreement in substantially the
form of Exhibit A. 
 “Pledged Equity Interests” shall mean all shares of capital stock and all other
equity interests in the Company, including, without limitation, all interests listed on Schedule 4.2 (as such schedule may be amended or modified from time to time) and the certificates, if any, representing such equity interests and any
interest of the Pledgor on the books and records of the Company and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed
in respect of or in exchange for any or all of such equity interests. 
 “Pledgor” shall have the meaning set
forth in the preamble. 
 “Proceeds” shall mean: (i) all “proceeds” as defined in Article 9
of the UCC, (ii) payments or distributions made with respect to any Pledged Equity Interests and (iii) whatever is receivable or received when Collateral or proceeds are sold, exchanged, collected or otherwise disposed of, whether such
disposition is voluntary or involuntary. 
 “Record” shall have the meaning specified in Article 9 of the
UCC. 
 “Secured Obligations” shall have the meaning assigned in Section 3.1. 

“Secured Parties” shall mean the Agents, Issuing Banks, Lenders and the Lender Counterparties and shall include, without
limitation, all former Agents, Issuing Banks, Lenders and Lender Counterparties to the extent that any Obligations owing to such Persons were incurred while such Persons were Agents, Issuing Banks, Lenders or Lender Counterparties and such
Obligations have not been paid or satisfied in full. 
 “UCC” shall mean the Uniform Commercial Code as in
effect from time to time in the State of New York or, when the context relates to perfection or priority of security interests, the Uniform Commercial Code as in effect from time to time in any other applicable jurisdiction. 

1.2  Definitions; Interpretation. All capitalized terms used herein (including the preamble and recitals hereto) and not
otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement or, if not defined therein, in the UCC. References to “Sections,” “Exhibits” and “Schedules” shall be to Sections, Exhibits and
Schedules, as the case may be, of this Agreement unless otherwise specifically provided. Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose
or be given any substantive effect. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. The use herein of the word “include” or
“including”, when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters,
whether or not nonlimiting language (such as “without limitation” or “but not limited to” or words of similar import) is used with reference thereto, but rather shall be 

  
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deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. If any conflict or inconsistency exists between this
Agreement and the Credit Agreement, the Credit Agreement shall govern. All references herein to provisions of the UCC shall include all successor provisions under any subsequent version or amendment to any Article of the UCC. 

At the request of Pledgor, the Collateral Agent in its sole discretion may elect to modify any of the time periods referenced in this
Agreement. 
 SECTION 2. GRANT OF SECURITY. 
 2.1  Grant of Security. The Pledgor hereby grants to the Collateral Agent a security interest in and continuing lien on all of Pledgor’s right, title and interest in, to and under
all of the following, in each case whether now owned or existing or hereafter acquired or arising and wherever located (all of which being hereinafter collectively referred to as the “Collateral”): 

(a) Pledged Equity Interests; and 
 (b) to the extent not otherwise included above, all Proceeds, products, accessions, rents and profits of or in respect of any of the foregoing. 

SECTION 3. SECURITY FOR OBLIGATIONS; PLEDGOR REMAINS LIABLE. 

3.1 Security for Obligations. This Agreement secures, and the Collateral is collateral security for, the prompt and complete
payment or performance in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including the payment of amounts that would become due but for the operation of the automatic stay under
Section 362(a) of the Bankruptcy Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of all Obligations of the Pledgor and the Credit Parties (the “Secured Obligations”). 

3.2 Continuing Liability Under Collateral. Notwithstanding anything herein to the contrary, (i) the Pledgor shall remain
liable for all obligations under the Collateral the same as if this Agreement had not been executed and nothing contained herein is intended or shall be a delegation of duties to the Collateral Agent or any Secured Party, (ii) the Pledgor shall
remain liable under any agreements relating to Pledged Equity Interests, to perform all of the obligations undertaken by it thereunder all in accordance with and pursuant to the terms and provisions thereof and neither the Collateral Agent nor any
Secured Party shall have any obligation or liability under any of such agreements by reason of or arising out of this Agreement or any other document related thereto nor shall the Collateral Agent nor any Secured Party have any obligation to make
any inquiry as to the nature or sufficiency of any payment received by it or have any obligation to take any action to collect or enforce any rights under any agreements relating to Pledged Equity Interests, and (iii) the exercise by the
Collateral Agent of any of its rights hereunder shall not release the Pledgor from any of its duties or obligations under any such contracts and agreements. 

  
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 SECTION 4. REPRESENTATIONS AND WARRANTIES AND COVENANTS. 

4.1  Generally. 
 (a)    Representations and Warranties. The Pledgor hereby represents and warrants that: 
 (i) it owns the Collateral purported to be owned by it or otherwise has the rights it purports to have in each item of Collateral and, as to all Collateral whether now existing or hereafter acquired, will
continue to own or have such rights in each item of the Collateral, in each case free and clear of any and all Liens of all other Persons, other than any Liens of the type described in Section 6.2 of the Credit Agreement (“Permitted
Liens”) and including, without limitation, Liens arising as a result of the Pledgor becoming bound (as a result of merger or otherwise) as debtor under a security agreement entered into by another Person; 

(ii) it has indicated on Schedule 4.1(A) as of the Closing Date: (w) its type of organization, (x) its
jurisdiction of organization, (y) its organizational identification number and (z) the jurisdiction where its chief executive office or its sole place of business is located; 

(iii) as of the Closing Date, the full legal name of the Pledgor is as set forth on Schedule 4.1(A); 

(iv) except as provided on Schedule 4.1(C), as of the Closing Date, it has not changed its name, jurisdiction of
organization, chief executive office or sole place of business or its corporate structure in any way (e.g., by merger, consolidation, change in corporate form or otherwise) within the past one (1) year; 

(v) (A) upon the filing of all UCC financing statements naming the Pledgor as “debtor” and the Collateral Agent
as “secured party” and describing the Collateral in the filing office(s) set forth on Schedule 4.1(D) hereof and (B) upon delivery of all certificated Pledged Equity Interests, the security interests granted to the Collateral
Agent hereunder constitute valid and perfected first priority Liens on all of the Collateral (subject to Permitted Liens); 
 (vi) all actions and consents (other than actions and consents required by the UCC or any other applicable law), including all filings, notices, registrations and recordings necessary for the exercise by
the Collateral Agent of the voting or other rights provided for in this Agreement or the exercise of remedies in respect of the Collateral have been made or obtained or otherwise set forth on Schedule 4.1(E); 

(vii) no authorization, approval or other action by, and no notice to or filing with, any Governmental Authority or
regulatory body is required for either (i) the pledge or grant by the Pledgor of the security interest purported to be created in favor of the Collateral Agent hereunder or (ii) the exercise by Collateral Agent of any rights or remedies in
respect of any Collateral (whether specifically granted or created hereunder or created or provided for by applicable law), except (A) for the filings contemplated by clause (v) above and (B) as may be required, in connection with the
disposition of any Pledged Equity Interests, by laws generally affecting the offering and sale of securities; and 

  
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 (viii) as of the Closing Date, it has been duly organized as a corporation
solely under the laws of Delaware and remains duly existing as such. The Pledgor has not filed any certificates of domestication, transfer or continuance in any other jurisdiction as of the Closing Date. 

(b)   Covenants and Agreements. The Pledgor hereby covenants and agrees that: 

(i) except for the security interest created by this Agreement, it shall not create or suffer to exist any Lien upon or
with respect to any of the Collateral other than Permitted Liens, and upon obtaining knowledge thereof, it shall defend the Collateral against all Persons (other than the Secured Parties) that have instituted, or made a non-frivolous threat in
writing of, any Adverse Proceeding claiming an interest therein adverse to the Collateral Agent; 
 (ii) it
shall not change its legal name, identity, corporate structure (e.g., by merger, consolidation, change in corporate form or otherwise), type of organization or jurisdiction of organization unless it shall have (a) notified the Collateral Agent
in writing, by executing and delivering to the Collateral Agent a completed Pledge Supplement, substantially in the form of Exhibit A attached hereto, together with all Supplements to applicable Schedules showing such change thereto, no more
than thirty (30) days after any such change or establishment, identifying such new proposed name, identity, corporate structure or jurisdiction of organization and providing such other information in connection therewith as the Collateral Agent
may reasonably request and (b) taken all actions reasonably determined to be necessary by the Collateral Agent to maintain the continuous validity, perfection and the same or better priority of the Collateral Agent’s security interest in
the Collateral intended to be granted and agreed to hereby; 
 (iii) unless it shall have provided Collateral
Agent with written notice within 30 day’s after such change, it shall not file any certificates of domestication, transfer or continuance in any jurisdiction other than the jurisdiction set forth opposite its name on Schedule 4.1(A);

 (iv) it shall not take or permit any action which could materially impair the Collateral Agent’s rights
in the Collateral, subject to the right to grant Permitted Liens; and 
 (v) it shall not sell, transfer or
assign any Collateral. 
 4.2   Pledged Equity Interests. (a) Representations and Warranties. The
Pledgor hereby represents and warrants that: 

  
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 (i) Schedule 4.2(A) sets forth all of the Pledged Equity Interests owned by the Pledgor
and such Pledged Equity Interests constitute all of the issued and outstanding shares of stock of the Company; 
 (ii) it is the
record and beneficial owner of the Pledged Equity Interests free of all Liens, rights or claims of other Persons (other than Permitted Liens) and there are no outstanding warrants, options or other rights to purchase, or shareholder, voting trust or
similar agreements outstanding with respect to, or property that is convertible into, or that requires the issuance or sale of, any Pledged Equity Interests; and 
 (iii) no consent of any Person is necessary in connection with the creation, perfection or first priority status of the security interest of the Collateral Agent in any Pledged Equity Interests or the
exercise by the Collateral Agent of the voting or other rights provided for in this Agreement or the exercise of remedies in respect thereof. 
 (b) Covenants and Agreements. The Pledgor hereby covenants and agrees that: 

(i) in the event it acquires rights in any Pledged Equity Interests after the date hereof, it shall deliver to the Collateral Agent a
completed Pledge Supplement, substantially in the form of Exhibit A attached hereto, together with all Supplements to Schedules thereto, reflecting such new Pledged Equity Interests. Notwithstanding the foregoing, it is understood and agreed
that the security interest of the Collateral Agent shall attach to all Pledged Equity Interests immediately upon the Pledgor’s acquisition of rights therein and shall not be affected by the failure of the Pledgor to deliver a pledge supplement
required hereby; 
 (ii) except as provided in the next sentence, in the event the Pledgor receives any dividends, interest or
distributions on any Pledged Equity Interests, or any securities or other property upon the merger, consolidation, liquidation or dissolution of the Company, then (a) such dividends, interest or distributions and securities or other property
shall be included in the definition of Collateral without further action and (b) the Pledgor shall immediately take all steps, if any, necessary (as reasonably determined to be necessary by the Collateral Agent) to ensure the validity,
perfection, priority and, if applicable, control of the Collateral Agent over such Pledged Equity Interests (including, without limitation, delivery thereof to the Collateral Agent) and pending any such action the Pledgor shall be deemed to hold
such dividends, interest, distributions, securities or other property in trust for the benefit of the Collateral Agent and shall segregate such dividends, distributions, securities or other property from all other property of the Pledgor.
Notwithstanding the foregoing, so long as no Event of Default shall have occurred and be continuing, the Collateral Agent authorizes the Pledgor to retain all ordinary cash dividends and distributions paid to it; and 

(iii) except as expressly permitted by the Credit Agreement, without the prior written consent of the Collateral Agent, it shall not
permit the Company to merge or consolidate unless (i) the surviving entity creates a security interest that is perfected by a filed financing statement (that is not effective solely under section 9-508 of the UCC) in

  
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collateral in which such new debtor has or acquires rights, and (ii) all the outstanding capital stock or other equity interests of the surviving or resulting corporation, limited liability
company, partnership or other entity which is a Subsidiary of the Pledgor and which is owned by the Pledgor is, upon such merger or consolidation, pledged hereunder. 
 (c)   Delivery and Control. 
 (i) The Pledgor agrees that with
respect to any Pledged Equity Interests in which it currently has rights it shall comply with the provisions of this Section 4.2(c)(i) on or before the Closing Date and with respect to any Pledged Equity Interests hereafter acquired by the
Pledgor it shall comply with the provisions of this Section 4.2(c)(i) promptly after acquiring rights therein, in each case in form and substance reasonably satisfactory to the Collateral Agent. With respect to any Pledged Equity Interest that
is represented by a certificate or that is an “instrument,” it shall cause such certificate or instrument to be delivered to the Collateral Agent, indorsed in blank by an “effective indorsement” (as defined in Section 8-107
of the UCC), regardless of whether such certificate constitutes a “certificated security” for purposes of the UCC. 

(d)   Voting and Distributions. 
 (i) So long as no Event of Default shall have occurred and be continuing and the Collateral Agent has not given the Pledgor five (5) Business Days prior written notice to the contrary: 

(1) except as otherwise provided under the covenants and agreements in this Agreement or elsewhere herein or in the
Credit Agreement, the Pledgor shall be entitled to exercise or refrain from exercising any and all voting and other consensual rights pertaining to the Pledged Equity Interests or any part thereof for any purpose not inconsistent with the terms of
this Agreement or the Credit Agreement; and 
 (2) the Collateral Agent shall promptly execute and deliver (or
cause to be executed and delivered) to the Pledgor all proxies and other instruments as the Pledgor may from time to time reasonably request for the purpose of enabling the Pledgor to exercise the voting and other consensual rights when and to the
extent which it is entitled to exercise pursuant to clause (1) above. 
 (ii) Upon the occurrence and during the
continuation of an Event of Default and upon five (5) Business Days’ prior written notice from the Collateral Agent to the Pledgor of the Collateral Agent’s intention to exercise such rights: 

(1) all rights of the Pledgor to exercise the voting and other consensual rights which it would otherwise be entitled to
exercise pursuant hereto shall cease and all such rights shall thereupon become vested in the Collateral Agent who shall thereupon have the sole right to exercise such voting and other consensual rights; and 

  
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 (2) in order to permit the Collateral Agent to exercise the voting and other
consensual rights which it may be entitled to exercise pursuant hereto and to receive all dividends and other distributions which it may be entitled to receive hereunder: (1) the Pledgor shall promptly execute and deliver (or cause to be
executed and delivered) to the Collateral Agent all proxies, dividend payment orders and other instruments as the Collateral Agent may from time to time reasonably request and (2) the Pledgor acknowledges that the Collateral Agent may utilize
the power of attorney set forth in Section 6.1. 
 SECTION 5. FURTHER ASSURANCES. 

5.1 Further Assurances. 
 (a) The Pledgor agrees that from time to time, at its expense, it shall promptly execute and deliver all further instruments and documents, and take all further action that may be necessary, or that the
Collateral Agent may reasonably request, in order to create and/or maintain the validity, perfection or priority of and protect any security interest granted hereby or to enable the Collateral Agent to exercise and enforce its rights and remedies
hereunder with respect to any Collateral. Without limiting the generality of the foregoing, the Pledgor shall: 

(i) file such financing or continuation statements, or amendments thereto, and execute and deliver such other agreements,
instruments, endorsements, powers of attorney or notices, as may be necessary or as the Collateral Agent may reasonably request, in order to perfect and preserve the security interests granted hereby; and 

(ii) at the Collateral Agent’s reasonable request, appear in and defend any action or proceeding that may affect the
Pledgor’s title to or the Collateral Agent’s security interest in all or any part of the Collateral. 
 The Pledgor
hereby authorizes the Collateral Agent to file a Record or Records, including, without limitation, financing or continuation statements, and amendments thereto, in any jurisdictions and with any filing offices as the Collateral Agent may determine,
in its reasonable discretion, are necessary to perfect the security interest granted to the Collateral Agent herein. Such financing statements may describe the Collateral in the same manner as described herein. The Pledgor shall furnish to the
Collateral Agent from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Collateral Agent may reasonably request, all in reasonable detail.

 SECTION 6. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT. 

6.1 Power of Attorney. Until the Termination Date, Pledgor hereby irrevocably appoints the Collateral Agent (such appointment being
coupled with an interest) as its attorney-in-fact, with full authority in its place and stead and in its name, in the name of the Collateral Agent or otherwise, from time to time in the Collateral Agent’s discretion to take any action and to
execute any instrument that the Collateral Agent may deem reasonably necessary or advisable to accomplish the purposes of this Agreement, including, without limitation, the following: 

  
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 (a) upon the occurrence and during the continuance of any Event of Default,
to ask for, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral; 

(b) upon the occurrence and during the continuance of any Event of Default, to receive, endorse and collect any drafts or
other instruments, documents and chattel paper in connection with clause (a) above; 
 (c) upon the
occurrence and during the continuance of any Event of Default, to file any claims or take any action or institute any proceedings that the Collateral Agent may deem necessary or desirable for the collection of any of the Collateral or otherwise to
enforce the rights of the Collateral Agent with respect to any of the Collateral; 
 (d) to prepare and file any
UCC financing statements against the Pledgor as debtor; 
 (e) upon the occurrence and during the continuance of
any Event of Default, to take or cause to be taken all actions necessary to perform or comply or cause performance or compliance with the terms of this Agreement, including, without limitation, access to pay or discharge taxes or Liens other than
Permitted Liens levied or placed upon or threatened against the Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by the Collateral Agent in its sole discretion, any such payments made by
the Collateral Agent to become obligations of the Pledgor to the Collateral Agent, due and payable immediately without demand; and 
 (f) upon the occurrence and during the continuance of any Event of Default, generally to sell, transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as fully
and completely as though the Collateral Agent were the absolute owner thereof for all purposes, and to do, at the Collateral Agent’s option and the Pledgor’s expense, at any time or from time to time, all acts and things that the
Collateral Agent deems reasonably necessary to protect, preserve or realize upon the Collateral and the Collateral Agent’s security interest therein in order to effect the intent of this Agreement, all as fully and effectively as the Pledgor
might do. 
 6.2 No Duty on the Part of Collateral Agent or Secured Parties. The powers conferred on the Collateral Agent
hereunder are solely to protect the interests of the Collateral Agent in the Collateral and shall not impose any duty upon the Collateral Agent or any Secured Party to exercise any such powers. The Collateral Agent and the Secured Parties shall be
accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors, employees or agents shall be responsible to the Pledgor for any act or failure to act
hereunder, except for their own gross negligence or willful misconduct. 
 SECTION 7. REMEDIES. 

7.1 Generally. 

  
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 (a) If any Event of Default shall have occurred and be continuing, the Collateral Agent may
exercise in respect of the Collateral, in addition to all other rights and remedies provided for herein or otherwise available to it at law or in equity, all the rights and remedies of the Collateral Agent on default under the UCC (whether or not
the UCC applies to the affected Collateral) to collect, enforce or satisfy any Secured Obligations then owing, whether by acceleration or otherwise, and also may pursue any of the following separately, successively or simultaneously: 

(i) require the Pledgor, and the Pledgor hereby agrees that it shall at its expense and promptly upon request of the
Collateral Agent forthwith, assemble all or part of the Collateral as directed by the Collateral Agent and make it available to the Collateral Agent at a place to be designated by the Collateral Agent that is reasonably convenient to both parties;
and 
 (ii) without notice except as specified below or under the UCC, sell, assign or otherwise dispose of the
Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, at such time or times and at such price or prices and upon such
other terms as the Collateral Agent may deem commercially reasonable. 
 (b) The Collateral Agent or any Secured Party may be
the purchaser of any or all of the Collateral at any public or private (to the extent that the portion of the Collateral being privately sold is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard
price quotations) sale in accordance with the UCC and the Collateral Agent, as collateral agent for and representative of the Secured Parties, shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for
all or any portion of the Collateral sold at any such sale made in accordance with the UCC, to use and apply any of the Secured Obligations as a credit on account of the purchase price for any Collateral payable by the Collateral Agent at such sale.
Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of the Pledgor, and the Pledgor hereby waives (to the extent permitted by applicable law) all rights of redemption, stay and/or
appraisal which it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. The Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten (10) days’
notice to the Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale of Collateral regardless of
notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which
it was so adjourned. The Pledgor hereby waives any claims against the Collateral Agent arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which might have been
obtained at a public sale, even if the Collateral Agent accepts the first offer received and does not offer such Collateral to more than one offeree. Nothing in this Section shall in any way alter the rights of the Collateral Agent hereunder.

 (c) The Pledgor recognizes that, by reason of certain prohibitions contained in the Securities Act and applicable state
securities laws, the Collateral Agent may be compelled, 

  
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with respect to any sale of all or any part of the Pledged Equity Interests conducted without prior registration or qualification of such Pledged Equity Interests under the Securities Act and/ or
such state securities laws, to limit purchasers to those who will agree, among other things, to acquire the Pledged Equity Interests for their own account, for investment and not with a view to the distribution or resale thereof. The Pledgor
acknowledges that any such private sale may be at prices and on terms less favorable than those obtainable through a public sale without such restrictions (including a public offering made pursuant to a registration statement under the Securities
Act) and, notwithstanding such circumstances, the Pledgor agrees that the fact that any such sale is conducted as a private sale shall not, in and of itself, issue such sale to not be deemed to have been made in a commercially reasonable manner and
that the Collateral Agent shall have no obligation to engage in public sales and no obligation to delay the sale of any Pledged Equity Interests for the period of time necessary to permit the issuer thereof to register it for a form of public sale
requiring registration under the Securities Act or under applicable state securities laws, even if such issuer would, or should, agree to so register it. If the Collateral Agent determines to exercise its right to sell any or all of the Pledged
Equity Interests, upon written request, the Pledgor shall and shall cause the Company to furnish to the Collateral Agent all such information as the Collateral Agent may request in order to determine the number and nature of interest, shares or
other instruments included in the Pledged Equity Interests which may be sold by the Collateral Agent in exempt transactions under the Securities Act and the rules and regulations of the Securities and Exchange Commission thereunder, as the same are
from time to time in effect. 
 (d) The Collateral Agent may sell the Collateral without giving any warranties as to the
Collateral. The Collateral Agent may specifically disclaim or modify any warranties of title or the like. This procedure will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral. 

(e) The Collateral Agent shall have no obligation to marshal any of the Collateral. 

7.2 Application of Proceeds. Except as expressly provided elsewhere in this Agreement or the Credit Agreement, all proceeds
received by the Collateral Agent in respect of any sale, any collection from, or other realization upon all or any part of the Collateral shall be applied in full or in part by the Collateral Agent in payment of the Secured Obligations in the
following order: 
 First, to pay incurred and unpaid fees and expenses of the Agents under the Credit
Documents; 
 Second, to the Administrative Agent, for application by it towards payment of amounts then
due and owing and remaining unpaid in respect of the Secured Obligations, pro rata among the Secured Parties according to the amounts of the Secured Obligations then due and owing and remaining unpaid to the Secured Parties; and 

Third, any balance remaining after the Secured Obligations shall have been paid in full, the Commitments shall have
terminated or been cancelled and the Letters of Credit shall have been cancelled, Cash Collateralized or have expired shall be paid over to the Company or to whomsoever may be lawfully entitled to receive the same. 

  
 11 

 7.3 Cash Proceeds. All proceeds of any Collateral received by the Pledgor consisting
of cash, checks and other non-cash items (collectively, “Cash Proceeds”) shall, if an Event of Default shall have occurred and is continuing, be held by the Pledgor in trust for the Collateral Agent, segregated from its other funds,
and shall, forthwith upon its receipt, unless otherwise provided pursuant to Section 4.2(b)(ii), be turned over to the Collateral Agent in the exact form received by the Pledgor (duly indorsed by the Pledgor to the Collateral Agent, if
required) and held by the Collateral Agent in the Collateral Account. Any Cash Proceeds received by the Collateral Agent (whether from the Pledgor or otherwise): (i) if no Event of Default shall have occurred and be continuing, shall be handled
as required by this Agreement or the Credit Agreement, or otherwise be turned over to the Pledgor and (ii) if an Event of Default shall have occurred and be continuing, may, in the sole discretion of the Collateral Agent, (A) be held by
the Collateral Agent for the ratable benefit of the Secured Parties, as collateral security for the Secured Obligations (whether matured or unmatured) and/or (B) then or at any time thereafter may be applied by the Collateral Agent against the
Secured Obligations then due and owing in accordance with the Credit Agreement. 
 SECTION 8. COLLATERAL AGENT.

 The Collateral Agent has been appointed to act as Collateral Agent hereunder by Lenders and, by their acceptance of the
benefits hereof, the other Secured Parties. The Collateral Agent 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 (including, without limitation, the release or substitution of Collateral), solely in accordance with this Agreement and the Credit Agreement; provided, the Collateral Agent shall, after (x) payment in full of all Obligations under the
Credit Agreement and the other Credit Documents (other than contingent indemnification and reimbursement obligations for which no claim has been made) and (y) all Letters of Credit have been cancelled or have expired or have been Cash
Collateralized or otherwise secured to the satisfaction of the Issuing Bank thereof, exercise, or refrain from exercising, any remedies provided for herein in accordance with the instructions of the holders of a majority of the aggregate notional
amount (or, with respect to any Permitted Hedge Agreement that has been terminated in accordance with its terms, the amount then due and payable (exclusive of expenses and similar payments but including any early termination payments then due) under
such Permitted Hedge Agreement) under all Permitted Hedge Agreements and Permitted Cash Management Agreements. In furtherance of the foregoing provisions of this Section, each Secured Party, by its acceptance of the benefits hereof, agrees that it
shall have no right individually to realize upon any of the Collateral hereunder, it being understood and agreed by such Secured Party that all rights and remedies hereunder may be exercised solely by the Collateral Agent for the benefit of Secured
Parties in accordance with the terms of this Section. Collateral Agent may at any time give notice of its resignation to the Secured Parties and Company in accordance with Section 9.6 of the Credit Agreement. 

  
 12 

 SECTION 9. CONTINUING SECURITY INTEREST; TRANSFER OF LOANS. 

This Agreement shall create a continuing security interest in the Collateral and shall remain in full force and effect until the
Termination Date, be binding upon the Pledgor, its successors and assigns, and inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Collateral Agent and its successors, transferees and assigns.
Without limiting the generality of the foregoing, but subject to the terms of the Credit Agreement, any Lender may assign or otherwise transfer any Loans held by it to any other Person, and such other Person shall thereupon become vested with all
the benefits in respect thereof granted to Lenders herein or otherwise. Upon the Termination Date, the security interest granted hereby shall automatically terminate hereunder and of record and all rights to the Collateral shall automatically revert
to the Pledgor. Upon any such termination the Collateral Agent shall, at Pledgor’s expense, execute and deliver to the Pledgor such documents as the Pledgor shall reasonably request to evidence such termination. 

SECTION 10. STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM. 

The powers conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty
upon it to exercise any such powers. Except for the exercise of reasonable care in the custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any
Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation
of Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its own property. Neither the Collateral Agent nor any of its directors, officers, employees or agents shall be
liable for failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of the Pledgor or otherwise. If the
Pledgor fails to perform any agreement contained herein, the Collateral Agent may itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be payable by the Pledgor.

 SECTION 11. MISCELLANEOUS. 
 Any notice required or permitted to be given under this Agreement shall be given in accordance with Section 10.1 of the Credit Agreement. No failure or delay on the part of the Collateral Agent in
the exercise of any power, right or privilege hereunder or under any other Credit Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or of any other power, right or privilege. All rights and remedies existing under this Agreement and the other Credit Documents are cumulative to, and not exclusive of,
any rights or remedies otherwise available. In case any provision in or obligation under this Agreement 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. All covenants hereunder shall be given independent 

  
 13 

 
effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations
of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists. This Agreement shall be binding upon and inure to the benefit of the Collateral Agent and Pledgor and its respective
successors and assigns. The Pledgor shall not, without the prior written consent of the Collateral Agent given in accordance with the Credit Agreement, assign any right, duty or obligation hereunder. This Agreement and the other Credit Documents
embody the entire agreement and understanding between the Pledgor and the Collateral Agent and supersede all prior agreements and understandings between such parties relating to the subject matter hereof and thereof. Accordingly, the Credit
Documents may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. This Agreement may be executed in one or more 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 AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

  
 14 

 IN WITNESS WHEREOF, the Pledgor and the Collateral Agent have caused this Agreement to be
duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above. 
  

			
	COVANTA HOLDING CORPORATION
		
	By:	 	/s/ Bradford J. Helgeson
	Name:	 	 Bradford J. Helgelson

	Title:	 	 Vice President and Treasurer

 Pledge Agreement 

 
			
	BANK OF AMERICA, N.A., as Collateral Agent
		
	By:	 	/s/ Maria F. Maia            
	Name:	 	Maria F. Maia
	Title:	 	Managing Director

 Pledge Agreement 

 SCHEDULE 4.1 
 TO PLEDGE AGREEMENT 
 GENERAL INFORMATION 

 

	(A)	Full Legal Name, Type of Organization, Jurisdiction of Organization, Chief Executive Office/Sole Place of Business and Organizational Identification Number of the
Pledgor: 

  

									
	 Full Legal
 Name
	  	 Type of

Organization
	  	Jurisdiction of
Organization	  	Chief Executive
Office/Sole Place of
Business	  	Organization I.D.#
					
	 Covanta Holding Corporation
	  	Corporation	  	Delaware	  	445 South Street,
Morristown, NJ 07960	  	2294829

  

	(B)	Other Legal Names of the Pledgor in the past one (1) year: 

 None 
 Trade Name or Fictitious Business Name 

None. 
  

	(C)	Changes in Name, Jurisdiction of Organization, Chief Executive Office or Sole Place of Business and Corporate Structure within past five (5) years:

  

			
	 Date of Change
	  	 Description of Change

	 December 10, 2010
	  	The Chief Executive Office moved from its prior location at 40 Lane Road, Fairfield, NJ 07004 to 445 South Street, Morristown, NJ 07690

  

	(D)	Financing Statements: 

Filing Jurisdiction(s): Delaware 
  

	(E)	Actions and Consents: None. 

  

SCHEDULE 4.1 - 1 

 SCHEDULE 4.2 
 TO PLEDGE AGREEMENT 
 Pledged Equity Interests 

(A) 
  

									
	 Corporation
	  	 Certificated
(Y/N)
	  	 Certificate
No. (if any)
	  	 No. of Pledged Units/Stock
	  	 % of Outstanding Stock

	 Covanta Energy Corporation
	  	Y	  	2	  	200	  	100%

  

SCHEDULE 4.2 -1 

 EXHIBIT A 
 TO PLEDGE AGREEMENT 
 PLEDGE SUPPLEMENT 

This PLEDGE SUPPLEMENT, dated [mm/dd/yy], is delivered by COVANTA HOLDING CORPORATION, a Delaware corporation (the
“Pledgor”) pursuant to the Pledge Agreement, dated as of March [28], 2012 (as it may be from time to time amended, restated, modified or supplemented, the “Pledge Agreement”), between Pledgor and BANK OF AMERICA,
N.A., as Collateral Agent (the “Collateral Agent”). Capitalized terms used herein not otherwise defined herein shall have the meanings ascribed thereto in the Pledge Agreement. 

Pledgor hereby confirms the grant to the Collateral Agent set forth in the Pledge Agreement of, and does hereby grant to the Collateral
Agent, a security interest in all of Pledgor’s right, title and interest in and to all Collateral to secure the Secured Obligations, in each case whether now or hereafter existing or in which Pledgor now has or hereafter acquires an interest
and wherever the same may be located. Pledgor represents and warrants that the attached Supplements to Schedules accurately and completely set forth all additional information required pursuant to the Pledge Agreement and hereby agrees that such
Supplements to Schedules shall constitute part of the Schedules to the Pledge Agreement. 
 IN WITNESS WHEREOF, Pledgor
has caused this Pledge Supplement to be duly executed and delivered by its duly authorized officer as of [mm/dd/yy]. 
  

			
	COVANTA HOLDING CORPORATION
		
	By:	 	 
	Name:	 	Timothy J. Simpson
	Title:	 	Executive Vice President and General Counsel

  

EXHIBIT A-1Intercompany Subordination Agreement, dated as of March 28, 2012

 Exhibit 10.4 
 INTERCOMPANY SUBORDINATION AGREEMENT 
 This INTERCOMPANY SUBORDINATION
AGREEMENT, dated as of March 28, 2012 (as may be amended, restated, supplemented, replaced or otherwise modified from time to time, the “Agreement”, is entered into by and among COVANTA ENERGY CORPORATION, a Delaware
corporation (the “Company”), COVANTA HOLDING CORPORATION, a Delaware corporation (“Holding”), CERTAIN SUBSIDIARIES OF COMPANY, as Guarantor Subsidiaries under and as defined in the Credit Agreement
(defined below) (collectively, the “Guarantor Subsidiaries,” and together with the Company and Holding, the “Covanta Parties”), CERTAIN OTHER SUBSIDIARIES OF COMPANY as Non-Guarantor Subsidiaries under and as
defined in the Credit Agreement (defined below) (collectively, the “Non-Guarantor Subsidiaries”) and BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) for the
benefit of the Secured Parties (as such term is defined in the Credit Agreement defined below). 
 RECITALS: 

WHEREAS, each capitalized term used but not otherwise defined herein shall have the meaning assigned to such term in the Credit and
Guaranty Agreement dated as of the date hereof (as the same may hereafter be amended, restated, supplemented, replaced or otherwise modified from time to time, the “Credit Agreement”) by and among the Company, Holding and certain of
the other Covanta Parties, the Lenders from time to time party thereto, the Administrative Agent and certain other parties thereto; 
 WHEREAS, pursuant to the Credit Agreement, the Permitted Hedge Agreements and the Permitted Cash Management Agreements, the Company and certain other Covanta Parties shall owe the Obligations to the
Secured Parties; 
 WHEREAS, certain of the Covanta Parties are or may become indebted to each other and Non-Guarantor
Subsidiaries pursuant to the Intercompany Master Note identified on Exhibit A hereto (the Indebtedness of each of the Covanta Parties to any other Covanta Party or any Non-Guarantor Subsidiary, now existing or hereafter incurred (whether
created directly or acquired by assignment or otherwise), and interest and premiums, if any, thereon and other amounts payable in respect thereof are hereinafter collectively referred to as the “Intercompany Indebtedness”); and

 WHEREAS, the obligations of the Secured Parties under the Credit Agreement, the Permitted Hedge Agreements and the
Permitted Cash Management Agreements are subject to the condition, among others, that the Intercompany Indebtedness be subordinated to the Senior Indebtedness (as defined below) in the manner set forth herein. 

NOW, THEREFORE, intending to be legally bound hereby, the parties hereto covenant and agree as follows: 

1. Subordination of Liabilities. Each Covanta Party, for itself, its successors and assigns, covenants and agrees, and each holder
of Intercompany Indebtedness by its acceptance thereof likewise covenants and agrees, that the payment of the principal of, and interest on, and all other amounts owing in respect of, Intercompany Indebtedness is hereby

 
expressly subordinated, to the extent and in the manner hereinafter set forth, to the indefeasible payment in full in cash or discharge in full of Senior Indebtedness in cash and cash
collateralization of any outstanding letters of credit thereunder. The subordination provisions set forth herein shall constitute a continuing offer to all persons who, in reliance upon such provisions, become holders of, or continue to hold, Senior
Indebtedness, and such provisions are made for the benefit of the holders of Senior Indebtedness, and such holders are hereby made obligees hereunder to the same extent as if their names were written herein as such, and they and/or each of them may
proceed to enforce such provisions. 
 “Senior Indebtedness” means, at any time, the Obligations as such term
is defined in the Credit Agreement, but excluding indemnification and other contingent obligations (other than contingent reimbursement obligations in respect of amounts that may be drawn under outstanding letters of credit) in respect of which no
assertion of liability and no claim or demand for payment has been made (and, in the case of indemnification obligations, no notice for indemnification has been issued by the indemnitee) at such time. 

2. Covanta Parties Not to Make Payments with Respect to Intercompany Indebtedness in Certain Circumstances. (a) Upon the
maturity of any Senior Indebtedness (including interest thereon or fees or any other amounts owing in respect thereof), whether at stated maturity, by acceleration or otherwise, all principal thereof and premium, if any, and interest thereon or fees
or any other amounts owing in respect thereof, in each case to the extent due and owing at such time, shall first be paid in full in cash or discharged in full, or such payment duly provided for in cash or in a manner satisfactory to the holder or
holders of such Senior Indebtedness, including cash collateralization of any outstanding letters of credit thereunder, before any payment is made on account of the principal of (including installments thereof), or interest on, or any amount
otherwise owing in respect of, Intercompany Indebtedness. Each holder of Intercompany Indebtedness hereby agrees that, so long as an Event of Default has occurred and is continuing, no amounts owing in respect of Intercompany Indebtedness shall be
made, asked, demanded, sued for, or otherwise taken, accepted or received (it being understood that such actions may be taken prior to the maturity of any Senior Indebtedness (whether at stated maturity, by acceleration or otherwise) so long as no
Event of Default has occurred and is continuing). 
 (b) In the event that notwithstanding the provisions of the preceding
subsection (a) of this Section 2, any Covanta Party shall make any payment on account of the principal of, or interest on, or amounts otherwise owing in respect of, Intercompany Indebtedness at a time when payment is not permitted by said
subsection (a), such payment shall be held by the holder of such Intercompany Indebtedness, in trust for the benefit of, and shall be paid forthwith over and delivered to, the holders of Senior Indebtedness or their representative or
representatives under the agreements pursuant to which Senior Indebtedness may have been issued, as their respective interests may appear, for application pro rata to the payment of all Senior Indebtedness remaining unpaid to the extent necessary to
pay all Senior Indebtedness in full in cash and cash collateralize any outstanding letters of credit thereunder in accordance with the terms of such Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the
holders of Senior Indebtedness. Without in any way modifying the subordination provisions set forth herein or affecting the subordination effected hereby, the 

  
 2 

 
relevant Covanta Party shall give holders of Intercompany Indebtedness prompt written notice of any maturity of Senior Indebtedness after which such Senior Indebtedness remains unsatisfied.

 3. Intercompany Indebtedness Subordinated to Prior Payment of all Senior Indebtedness on Dissolution, Liquidation or
Reorganization of any Covanta Party. Upon any distribution of assets of any Covanta Party that constitute Collateral upon any dissolution, winding up, liquidation or reorganization of such Covanta Party (whether in bankruptcy, insolvency or
receivership proceedings or upon an assignment for the benefit of creditors or otherwise): 
 (a) the holders of
all Senior Indebtedness shall first be entitled to receive payment in full in cash or in a manner satisfactory to the holder or holders of such Senior Indebtedness of the principal thereof, premium, if any, and interest (including, without
limitation, all interest accruing after the commencement of any bankruptcy, insolvency, receivership or similar proceeding at the rate provided in the governing documentation whether or not such interest is an allowed claim in such proceeding) and
all other amounts due thereon before the holders of Intercompany Indebtedness is entitled to receive any payment on account of the principal of or interest on or any other amount owing in respect of Intercompany Indebtedness; 

(b) any payment or distribution of assets of such Covanta Party of any kind or character that constitute Collateral,
whether in cash, property or securities, to which holders of Intercompany Indebtedness would be entitled except for the subordination provisions set forth herein, shall be paid by the liquidating trustee or agent or other person making such payment
or distribution, whether a trustee or agent, directly to the holders of Senior Indebtedness or their representative or representatives under the agreements pursuant to which Senior Indebtedness may have been issued, to the extent necessary to make
payment in full of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness; and 

(c) in the event that, notwithstanding the foregoing provisions of this Section 3, any payment or distribution of
assets of such Covanta Party of any kind or character that constitute Collateral, whether in cash, property or securities, shall be received by holders of Intercompany Indebtedness on account of principal of, or interest or other amounts due on,
Intercompany Indebtedness before all Senior Indebtedness is paid in full in cash or in a manner satisfactory to the holder or holders of such Senior Indebtedness or otherwise discharged in full, or effective provisions made for its payment, such
payment or distribution shall be received and held in trust for and shall be paid over to the holders of Senior Indebtedness remaining unpaid or unprovided for or their representative or representatives under the agreements pursuant to which Senior
Indebtedness may have been issued, for application to the payment of such Senior Indebtedness until all such Senior Indebtedness shall have been paid in full in cash or in a manner satisfactory to the holder or holders of such Senior Indebtedness or
otherwise discharged in full, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness. 

  
 3 

 Without in any way modifying the subordination provisions set forth herein or affecting the
subordination effected hereby, such Covanta Party shall give prompt written notice to holders of Intercompany Indebtedness of any dissolution, winding up, liquidation or reorganization of such Covanta Party (whether in bankruptcy, insolvency or
receivership proceedings or upon an assignment for the benefit of creditors or otherwise). 
 4. Furtherance of
Subordination. If any proceeding referred to in Section 3 above is commenced by or against any Covanta Party: 
 (a) the Administrative Agent, acting on behalf of each holder of Senior Indebtedness, is hereby irrevocably authorized and empowered (in its own name or in the name of the holders of Intercompany
Indebtedness or otherwise), but shall have no obligation, to demand, sue for, collect and receive every payment or distribution referred to in Section 3(b) and give acquittance therefor and to file claims and proofs of claim and take such other
action (including, without limitation, voting the claims arising under Intercompany Indebtedness or enforcing any security interest or other lien securing payment of Intercompany Indebtedness) as it may deem necessary or advisable for the exercise
or enforcement of or causing enforcement of any of the rights or interests of the holders of Senior Indebtedness hereunder; 
 (b) each holder of Intercompany Indebtedness shall duly and promptly take such action as the Administrative Agent may request (i) to collect Intercompany Indebtedness for the account of the holders
of Senior Indebtedness and to file appropriate claims or proofs of claim in respect of Intercompany Indebtedness, (ii) to execute and deliver to the Administrative Agent such powers of attorney, assignments or other instruments as the
Administrative Agent may request in order to enable the Administrative Agent to enforce any and all claims with respect to, and any security interests and other liens securing payment of, Intercompany Indebtedness, and (iii) to collect
and receive any and all payments or distributions that may be payable or deliverable upon or with respect to Intercompany Indebtedness; and 
 (c) The holders of Senior Indebtedness are hereby authorized to demand specific performance of this Agreement, whether or not such Covanta Party shall have complied with any of the provisions hereof
applicable to it, at any time when the holders of Intercompany Indebtedness shall have failed to comply with any of the provisions of this Agreement applicable to it. Each holder of Intercompany Indebtedness hereby irrevocably waives any defense
based on the adequacy of a remedy at law that might be asserted as a bar to such remedy of specific performance. 
 5.
Subrogation. Subject to the prior payment or discharge in cash in full of all Senior Indebtedness, holders of Intercompany Indebtedness shall be subrogated to the rights of the holders of Senior Indebtedness to receive payments or
distributions of assets of any Covanta Party applicable to Senior Indebtedness until all amounts owing in respect of Intercompany Indebtedness shall be paid or discharged in full, and for the purpose of such subrogation no payments or distributions
to the holders of Senior Indebtedness by or on behalf of such Covanta Party or by or on behalf of holders of Intercompany Indebtedness by virtue of the subordination provisions set forth herein that otherwise would have been made to the holders of

  
 4 

 
Intercompany Indebtedness, shall be deemed to be payment by such Covanta Party to or on account of Intercompany Indebtedness, it being understood that the subordination provisions set forth
herein are and are intended solely for the purpose of defining the relative rights of the holders of Intercompany Indebtedness, on the one hand, and the holders of Senior Indebtedness, on the other hand. 

6. Obligation of the Covanta Parties Unconditional. Nothing contained in the subordination provisions set forth herein or in the
documents evidencing Intercompany Indebtedness is intended to or shall impair, as between any Covanta Party and the holders of Intercompany Indebtedness, the obligation of such Covanta Party, which is absolute and unconditional, to pay to the
holders of Intercompany Indebtedness the principal of and interest on Intercompany Indebtedness as and when the same shall become due and payable in accordance with its terms, or is intended to or shall affect the relative rights of the holders of
Intercompany Indebtedness and creditors of such Covanta Party other than the holders of Senior Indebtedness, nor shall anything herein or therein prevent the holders of Intercompany Indebtedness from exercising all remedies otherwise permitted by
applicable law, subject to the rights, if any, under the subordination provisions set forth herein of the holders of Senior Indebtedness in respect of cash, property, or securities of such Covanta Party received upon the exercise of any such remedy.
Upon any distribution of assets of such Covanta Party referred to herein, the holders of Intercompany Indebtedness shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which such dissolution, winding up,
liquidation or reorganization proceedings are pending, or a certificate of the liquidating trustee or agent or other person making any distribution to the holders of Intercompany Indebtedness, for the purpose of ascertaining the persons entitled to
participate in such distribution, the holders of Senior Indebtedness and other indebtedness of such Covanta Party, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or
hereto. 
 7. Subordination Rights Not Impaired by Acts or Omissions of any Covanta Party or Holders of Senior
Indebtedness. No rights of any present or future holders of any Senior Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by an act or failure to act on the part of any Covanta Party
or by any act or failure to act in good faith by any such holder, or by any noncompliance by such Covanta Party with the terms and provisions of Intercompany Indebtedness, regardless of any knowledge thereof which any such holder may have or be
otherwise charged with. The holders of Senior Indebtedness may, without in any way affecting the obligations of the holders of Intercompany Indebtedness with respect thereto, at any time or from time to time and in their absolute discretion, change
the manner, place or terms of payment of, change or extend the time of payment of, or renew or alter, any Senior Indebtedness, or amend, modify or supplement any agreement or instrument governing or evidencing such Senior Indebtedness or any other
document referred to therein, or exercise or refrain from exercising any other of their rights under Senior Indebtedness including, without limitation, the waiver of a default thereunder and the release of any collateral securing such Senior
Indebtedness, all without notice to or consent from the holders of Intercompany Indebtedness. 
 8. Additional
Subsidiaries. Upon execution and delivery after the date hereof by any (x) Guarantor Subsidiary of a counterpart signature page hereto, such Guarantor 

  
 5 

 
Subsidiary shall become a “Covanta Party” hereunder or (y) Non-Guarantor Subsidiary of a counterpart signature page hereto, such Non-Guarantor Subsidiary shall become a “Non-
Guarantor Subsidiary” hereunder, in each case with the same force and effect as if originally named as a Covanta Party or Non-Guarantor Subsidiary (as applicable) hereunder. The rights and obligations of each Covanta Party hereunder shall
remain in full force and effect notwithstanding the addition of any new Covanta Party as a party to this Agreement. 
 9.
Continuing Force and Effect. This Agreement shall continue in force for so long as any portion of Senior Indebtedness remains unpaid and any Commitments under the Credit Agreement remain outstanding, it being contemplated that this Agreement
be of a continuing nature. 
 10. Modification, Amendments or Waivers. Any and all agreements amending or changing any
provision of this Agreement or the rights of the holders of Senior Indebtedness hereunder, and any and all waivers or consents hereunder, shall be made only by written agreement, waiver or consent signed by the Covanta Parties and the Administrative
Agent, acting on behalf of the holders of Senior Indebtedness. 
 11. Severability. The provisions of this Agreement are
intended to be severable. If any provision of this Agreement shall be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without in any manner affecting the validity or enforceability thereof in any other jurisdiction or the remaining provisions hereof in any jurisdiction. 
 12. Governing Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK. 
 13. Successors and Assigns. This Agreement shall inure to the benefit of the Secured Parties and their
respective successors and assigns, as permitted in the Credit Agreement, and the obligations of the Covanta Parties and the Non-Guarantor Subsidiaries shall be binding upon their respective successors and assigns. The duties and obligations of the
Covanta Parties and the Non-Guarantor Subsidiaries may not be delegated or transferred without the written consent of the Requisite Lenders under the Credit Agreement and any such delegation or transfer without such consent shall be null and void.

 14. Counterparts. This Agreement may be executed in any number of counterparts and by the different parties hereto on
separate counterparts, each of which, when executed and delivered, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. 
 15. Remedies. In the event of a breach by any of the Covanta Parties or any of the Non-Guarantor Subsidiaries in the performance of any of the terms of this Agreement, the Administrative Agent, on
behalf of the Secured Parties, may demand specific performance of this Agreement and seek injunctive relief and may exercise any other remedy available at law or 

  
 6 

 
in equity, it being recognized that the remedies of the Administrative Agent, on behalf of the Secured Parties, at law may not fully compensate the Administrative Agent, on behalf of the Secured
Parties, for the damages they may suffer in the event of a breach hereof. 
 16. Notices. All notices, statements,
requests and demands and other communications given to or made among the Covanta Parties, the Non-Guarantor Subsidiaries, the Administrative Agent or the holders of Senior Indebtedness in accordance with the provisions of this Agreement shall be
given or made as provided in Section 10.1 of the Credit Agreement. 
 17. Termination. Upon the Termination Date,
this Agreement shall terminate and be of no further force and effect. 
 [Remainder of page intentionally left blank] 

  
 7 

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

			
	COVANTA ENERGY CORPORATION, A DELAWARE CORPORATION, AND EACH OF ITS SUBSIDIARIES LISTED ON ANNEX A HERETO
		
	By:	 	/s/ Bradford J. Helgeson         
		 	Name: Bradford J. Helgeson
		 	Title: Authorized Officer

  

			
	COVANTA HOLDING CORPORATION, A DELAWARE CORPORATION
		
	By:	 	/s/ Bradford J. Helgeson        
		 	Name: Bradford J. Helgeson
		 	Title: Vice President and Treasurer

  
 [Intercompany
Subordination Agreement] 

 
			
	 BANK OF AMERICA, N.A.,
 as Administrative Agent

		
	By:	 	/s/ Maria F. Maia         
		 	Name: Maria F. Maia
		 	Title: Managing Director

  
 [Intercompany
Subordination Agreement] 

 ANNEX A TO SIGNATURE PAGE 

Guarantor Subsidiaries 
  

			
		
	1.	  	 Capital Compost & Waste Reduction Services, LLC, a New York limited liability company

By its Sole Member Covanta Berkshire Operations, Inc.

		
	2.	  	 Covanta 4Recovery I, LLC (f/k/a Covanta 4Recovery LLC), a Delaware limited liability company

By its Sole Member Covanta ARC LLC

		
	3.	  	 Covanta 4Recovery II, LLC (f/k/a TransRiver II, LLC), a Delaware limited liability company

By its Sole Member Covanta 4Recovery I, LLC

		
	4.	  	 Covanta 4Recovery, L.P. (f/k/a TransRiver Marketing Company, L.P.), a Delaware limited partnership

By its General Partner and Managing Partner Covanta 4Recovery I, LLC
 By its Limited Partners Covanta 4Recovery I, LLC and Covanta 4Recovery II, LLC

		
	5.	  	 Covanta 4Recovery Portsmouth LLC (f/k/a TransRiver Portsmouth LLC), a Virginia limited liability company

By its Sole Member Covanta 4Recovery, L.P. by its General Partner Covanta
 4Recovery I, LLC and by its Limited Partners Covanta
 4Recovery I, LLC and Covanta 4Recovery II,
LLC

		
	6.	  	 Covanta 4Recovery Transfer Systems LLC (f/k/a TransRiver Transfer Systems LLC), a Delaware limited liability company

By its Sole Member Covanta 4Recovery, L.P. by its General Partner Covanta
 4Recovery I, LLC and by its Limited Partners Covanta
 4Recovery I, LLC and Covanta 4Recovery II,
LLC

		
	7.	  	 Covanta 4Recovery Waste LLC (f/k/a TransRiver Waste LLC), a Delaware limited liability company

By its Sole Member Covanta 4Recovery, L.P. by its General Partner Covanta
 4Recovery I, LLC and by its Limited Partners Covanta 4Recovery I, LLC and Covanta
 4Recovery II,
LLC

		
	8.	  	 Covanta Abington Transfer Solutions LLC, a Delaware limited liability company
 By its Sole Member Covanta ES, Inc.

		
	9.	  	Covanta Alexandria/Arlington, Inc., a Virginia corporation
		
	10.	  	 Covanta ARC Company, a Delaware general partnership
 By its General Partners Covanta Ref-Fuel Management LLC and Covanta Ref-Fuel Management II, LLC
 By
its Managing Partner Covanta Ref-Fuel Management LLC

		
	11.	  	 Covanta ARC Holdings, LLC, a Delaware limited liability company
 By its Sole Member Covanta Energy Corporation

		
	12.	  	 Covanta ARC LLC, a Delaware limited liability company
 By its Sole Member Covanta Ref-Fuel Holdings LLC

		
	13.	  	 Covanta B-3, LLC, a New York limited liability company
 By its Sole Member and Manager Covanta Berkshire Operations, Inc.

			
		
	14.	  	Covanta Berkshire Holdings, Inc., a New York corporation
		
	15.	  	Covanta Berkshire Operations, Inc., a New York corporation
		
	16.	  	 Covanta Capital District II LLC, a Delaware limited liability company
 By its Sole Member Covanta Capital District LLC

		
	17.	  	 Covanta Capital District LLC, a Delaware limited liability company
 By its Sole Member Covanta ARC LLC

		
	18.	  	 Covanta Capital District, L.P., a Delaware limited partnership
 By its General Partner and Managing Partner Covanta Capital District LLC
 By its Limited Partners
Covanta Capital District LLC and Covanta Capital District II LLC

		
	19.	  	 Covanta Dade Metals Recovery LLC, a Florida limited liability company
 By its Sole Member Covanta Pasco, Inc.

		
	20.	  	 Covanta Development Company LLC, a Delaware limited liability company
 By its Sole Member Covanta ARC Company

		
	21.	  	Covanta Energy Americas, Inc., a Delaware corporation
		
	22.	  	Covanta Energy Asia, Inc., a Delaware corporation
		
	23.	  	Covanta Energy Europe, Inc., a Delaware corporation
		
	24.	  	Covanta Energy Group, Inc., a Delaware corporation
		
	25.	  	 Covanta Energy Marketing LLC, a Delaware limited liability company
 By its Sole Member Covanta Energy Corporation

		
	26.	  	Covanta Energy Resource Corp., a Delaware corporation
		
	27.	  	Covanta Energy Services, Inc., a Delaware corporation
		
	28.	  	Covanta Engineering Services, Inc., a New Jersey corporation
		
	29.	  	Covanta ES, Inc., a Delaware corporation
		
	30.	  	Covanta Fairfax, Inc., a Virginia corporation
		
	31.	  	Covanta Harrisburg, Inc., a Delaware corporation
		
	32.	  	Covanta Haverhill Properties, Inc., a Massachusetts corporation
		
	33.	  	 Covanta Hawaii Energy LLC, a Hawaii limited liability company
 By its Sole Member Covanta Projects of Hawaii, Inc.

		
	34.	  	 Covanta Hempstead Company, a New York general partnership
 By its General Partners Covanta Hempstead LLC and Covanta Hempstead II, LLC By its Managing Partner Covanta Hempstead LLC

		
	35.	  	 Covanta Hempstead II, LLC, a Delaware limited liability company
 By its Sole Member Covanta Hempstead LLC

		
	36.	  	 Covanta Hempstead LLC, a Delaware limited liability company
 By its Sole Member Covanta ARC LLC

		
	37.	  	 Covanta Hennepin Energy Resource Co., Limited Partnership, a Delaware limited partnership

By its General Partner Covanta Energy Resource Corp.

		
	38.	  	Covanta Hillsborough, Inc., a Florida corporation
		
	39.	  	 Covanta Honolulu Resource Recovery Venture, a Hawaii General Partnership
 By its General Partners and Executive Committee Covanta Oahu Waste Energy Recovery, Inc. and Covanta Projects of Hawaii Inc.

		
	40.	  	 Covanta Hudson Valley Renewable Energy LLC, a Delaware limited liability company
 By its Sole Member Covanta ES, Inc.

			
		
	41.	  	Covanta Huntsville, Inc., an Alabama corporation
		
	42.	  	Covanta Indianapolis, Inc., an Indiana corporation
		
	43.	  	Covanta Kent, Inc., a Michigan corporation
		
	44.	  	Covanta Lancaster, Inc., a Pennsylvania corporation
		
	45.	  	Covanta Lee, Inc., a Florida corporation
		
	46.	  	Covanta Long Beach Renewable Energy Corp., a Delaware corporation
		
	47.	  	Covanta Long Island, Inc., a Delaware corporation
		
	48.	  	Covanta MacArthur Renewable Energy, Inc., a New York corporation
		
	49.	  	Covanta Marion Land Corp., an Oregon corporation
		
	50.	  	Covanta Marion, Inc., an Oregon corporation
		
	51.	  	Covanta Mid-Conn, Inc., a Connecticut corporation
		
	52.	  	Covanta Montgomery, Inc., Maryland corporation
		
	53.	  	Covanta Oahu Waste Energy Recovery, Inc., a California corporation
		
	54.	  	Covanta Onondaga Operations, Inc., a Delaware corporation
		
	55.	  	 Covanta Operations of Union LLC, a New Jersey limited liability company
 By its Sole Members and Managers Covanta Projects, Inc. and Covanta Waste to Energy, LLC

		
	56.	  	Covanta OPW Associates, Inc., a Connecticut corporation
		
	57.	  	Covanta OPWH, Inc., a Delaware corporation
		
	58.	  	 Covanta Palm Beach Renewable Energy LLC, a Delaware limited liability company
 By its Sole Member Covanta Energy Corporation

		
	59.	  	Covanta Pasco, Inc., a Florida corporation
		
	60.	  	Covanta Pinellas, Inc., a Florida corporation
		
	61.	  	 Covanta Pittsfield, LLC, a New York limited liability company
 By its Sole Member and Manager Covanta Berkshire Operations, Inc.

		
	62.	  	Covanta Plymouth Energy Corp., a Delaware corporation
		
	63.	  	Covanta Plymouth GP Corp., a Delaware corporation
		
	64.	  	Covanta Plymouth Investments Corp., a Delaware corporation
		
	65.	  	Covanta Plymouth, Inc., a Delaware corporation
		
	66.	  	Covanta Power Development of Mauritius, Inc., a Delaware corporation
		
	67.	  	Covanta Power Development, Inc., a Delaware corporation
		
	68.	  	Covanta Power International Holdings, Inc., a Delaware corporation
		
	69.	  	 Covanta Power LLC, a Delaware limited liability company
 By its Sole Member Covanta Energy Corporation

		
	70.	  	Covanta Projects of Hawaii, Inc., a Hawaii corporation
		
	71.	  	Covanta Projects of Wallingford, L.P., a Delaware limited partnership By its General Partner Covanta OPW Associates, Inc. By its Limited Partner Covanta Wallingford Associates,
Inc.
		
	72.	  	Covanta Projects, Inc., a Delaware corporation
		
	73.	  	 Covanta Ref-Fuel Finance LLC (f/k/a Ref-Fuel Corp.), a Delaware limited liability company

By its Sole Member Covanta ARC Holdings, LLC

		
	74.	  	 Covanta Ref-Fuel Holdings LLC, a Delaware limited liability company
 By its Sole Members MSW Energy Hudson LLC and MSW Energy Erie LLC

			
		
	75.	  	 Covanta Ref-Fuel II LLC, a Delaware limited liability company
 By its Sole Member MSW Energy Holdings II LLC

		
	76.	  	 Covanta Ref-Fuel LLC (f/k/a Ref-Fuel LLC), a Delaware limited liability company
 By its Sole Member Covanta Ref-Fuel Finance, LLC

		
	77.	  	 Covanta Ref-Fuel Management II, LLC, a Delaware limited liability company
 By its Sole Member Covanta Ref-Fuel Management LLC

		
	78.	  	 Covanta Ref-Fuel Management LLC, a Delaware limited liability company
 By its Sole Member Covanta ARC LLC

		
	79.	  	 Covanta Renewable Energy Detroit, LLC, a Delaware limited liability company
 By its Sole Member Covanta RRS Holdings, Inc.

		
	80.	  	 Covanta Renewable Fuels LLC, a Delaware limited liability company
 By its Sole Member Covanta Energy Corporation

		
	81.	  	 Covanta Research & Technology, LLC, a Delaware limited liability company

By its Sole Member Covanta Energy Corporation

		
	82.	  	Covanta RRS Holdings, Inc., a Delaware corporation
		
	83.	  	 Covanta SECONN LLC, a Delaware limited liability company
 By its Sole Member Covanta ARC LLC

		
	84.	  	 Covanta Southeastern Florida Renewable Energy LLC, a Delaware limited liability company

By its Sole Member Covanta Pasco, Inc.

		
	85.	  	Covanta Stanislaus, Inc., a California corporation
		
	86.	  	 Covanta Sustainable Solutions, LLC (f/k/a Covanta Secure Services, LLC), a Delaware limited liability company

By its Sole Member Covanta 4Recovery, L.P. by its General Partner Covanta 4Recovery I, LLC and by its Limited Partners Covanta 4Recovery I, LLC and
Covanta 4Recovery II, LLC

		
	87.	  	 Covanta Systems, LLC, a Delaware limited liability company
 By its Sole Member Covanta Waste to Energy, LLC

		
	88.	  	Covanta Wallingford Associates, Inc., a Connecticut corporation
		
	89.	  	 Covanta Warren Energy Resources Co., Limited Partnership, a Delaware limited partnership

By its General Partner Covanta Warren Holdings I, Inc.

		
	90.	  	Covanta Warren Holdings I, Inc., a Virginia corporation
		
	91.	  	Covanta Warren Holdings II, Inc., a California corporation
		
	92.	  	Covanta Waste to Energy of Italy, Inc., a Delaware corporation
		
	93.	  	 Covanta Waste to Energy, LLC, a Delaware limited liability company
 By its Sole Member Covanta Projects, Inc.

		
	94.	  	 Covanta WBH, LLC, a Delaware limited liability company
 By its Sole Member Covanta Lancaster, Inc.

		
	95.	  	 Covanta York Renewable Energy LLC, a Delaware limited liability company
 By its Sole Member and Manager Covanta ES, Inc.

		
	96.	  	DSS Environmental, Inc., a New York corporation
		
	97.	  	 ECOvanta, LLC, a Delaware limited liability company
 By its Sole Member Covanta 4Recovery I, LLC

		
	98.	  	LMI, Inc., a Massachusetts corporation
		
	99.	  	 M O’Connor LLC, a Delaware limited liability company
 By its Sole Member Covanta ES, Inc.

			
		
	100.	  	Mount Kisco Transfer Station, Inc., a New York corporation
		
	101.	  	 MSW Energy Erie, LLC, a Delaware limited liability company
 By its Sole Member and Manager MWS Energy Holdings LLC

		
	102.	  	MSW Energy Finance Co. II, Inc., a Delaware corporation
		
	103.	  	MSW Energy Finance Co., Inc., a Delaware corporation
		
	104.	  	 MSW Energy Holdings II LLC, a Delaware limited liability company
 By its Sole Member and Manager Covanta ARC Holdings, Inc.

		
	105.	  	 MSW Energy Holdings LLC, a Delaware limited liability company
 By its Sole Member and Managing Member Covanta ARC Holdings, Inc.

		
	106.	  	 MSW Energy Hudson LLC, a Delaware limited liability company
 By its Sole Member MSW Energy Holdings LLC

		
	107.	  	 MSW I Sub, LLC, a Delaware limited liability company
 By its Sole Member Covanta ARC Holdings, LLC

		
	108.	  	OPI Quezon, LLC, a Delaware limited liability company By its Sole Member Covanta Power International Holdings, Inc.
		
	109.	  	Peabody Monofill Associates, Inc., a Massachusetts corporation
		
	110.	  	 Recycling Industries Transfer Station, LLC, a New York limited liability company
 By its Sole Member and Manager Covanta 4Recovery, L.P. by its General Partner Covanta 4Recovery I, LLC and by its Limited Partners Covanta 4Recovery I, LLC and Covanta 4Recovery II,
LLC

		
	111.	  	 TransRiver Philadelphia LLC, a Delaware limited liability company
 By its Sole Member and Manager Covanta 4Recovery, L.P. by its General Partner Covanta 4Recovery I, LLC and by its Limited Partners Covanta 4Recovery I, LLC and Covanta 4Recovery II,
LLC

 ANNEX B TO SIGNATURE PAGE 

Non-Guarantor Subsidiaries 
  

			
		
	1.	  	8309 Tujunga Avenue Corp., a California corporation
		
	2.	  	Burney Mountain Power, a California corporation
		
	3.	  	Central Valley Biomass Holdings, LLC, a Delaware limited liability company
		
	4.	  	Central Valley Fuels Management, Inc., a Delaware corporation
		
	5.	  	Covanta Babylon, Inc., a New York corporation
		
	6.	  	Covanta Bessemer, Inc., a Delaware corporation
		
	7.	  	Covanta Biofuels, Inc., a Delaware corporation
		
	8.	  	Covanta Bristol, Inc., a Connecticut corporation
		
	9.	  	Covanta Company of SEMASS, L.P., a Delaware limited partnership
		
	10.	  	Covanta Connecticut (S.E.), LLC, a Delaware limited liability company
		
	11.	  	Covanta Dade Investments, Inc., a Florida corporation
		
	12.	  	Covanta Dade Power Corp., a Florida corporation
		
	13.	  	Covanta Dade Renewable Energy Ltd., a Florida limited partnership
		
	14.	  	Covanta Delano, Inc., a Delaware corporation
		
	15.	  	Covanta Delaware Valley LLC, a Delaware limited liability company
		
	16.	  	Covanta Delaware Valley II, LLC, a Delaware limited liability company
		
	17.	  	Covanta Delaware Valley, L.P., a Delaware limited partnership
		
	18.	  	Covanta Essex Company (formerly known as American Ref-Fuel Company of Essex County), a New Jersey corporation
		
	19.	  	Covanta Essex LLC, a Delaware limited liability company
		
	20.	  	Covanta Essex II, LLC, a Delaware limited liability company
		
	21.	  	Covanta Frederick/Carroll, Inc., a Maryland corporation
		
	22.	  	Covanta Hampton Roads LLC, a Virginia limited liability company
		
	23.	  	Covanta Harford, Inc., a Maryland corporation
		
	24.	  	Covanta Haverhill Associates, a Massachusetts corporation
		
	25.	  	Covanta Haverhill, Inc., a Massachusetts corporation
		
	26.	  	Covanta Huntington Limited Partnership, a Delaware corporation
		
	27.	  	Covanta Huntington Resource Recovery One Corp., a Delaware corporation
		
	28.	  	Covanta Huntington Resource Recovery Seven Corp., a Delaware corporation
		
	29.	  	Covanta Hydro Operations West, Inc., a Delaware corporation
		
	30.	  	Covanta Lake II, Inc., a Florida corporation
		
	31.	  	Covanta Maine, LLC, an Illinois limited liability company
		
	32.	  	Covanta Mendota Holdings, Inc., a Delaware corporation
		
	33.	  	Covanta Mendota, L.P., a California limited partnership
		
	34.	  	Covanta Niagara LLC, a Delaware limited liability company
		
	35.	  	Covanta Niagara II, LLC, a Delaware limited liability company
		
	36.	  	Covanta Niagara, L.P., a Delaware limited partnership
		
	37.	  	Covanta Omega Lease, Inc., a Delaware corporation

			
		
	38.	  	Covanta Onondaga Five Corp., a Delaware corporation
		
	39.	  	Covanta Onondaga Four Corp., a Delaware corporation
		
	40.	  	Covanta Onondaga Limited Partnership, a Delaware corporation
		
	41.	  	Covanta Onondaga Three Corp., a Delaware corporation
		
	42.	  	Covanta Onondaga Two Corp., a Delaware corporation
		
	43.	  	Covanta Onondaga, Inc., a New York corporation
		
	44.	  	Covanta Operations of SEMASS LLC, a Delaware limited liability company
		
	45.	  	Covanta Operations of SEMASS II, LLC, a Delaware limited liability company
		
	46.	  	Covanta Otay 3 Company, a California corporation
		
	47.	  	Covanta Plymouth Renewable Energy Limited Partnership, a Delaware limited partnership
		
	48.	  	Covanta Power Pacific, Inc., a California corporation
		
	49.	  	Covanta Power Plant Operations, a California corporation
		
	50.	  	Covanta SBR Associates, a Massachusetts corporation
		
	51.	  	Covanta SEMASS LLC, a Delaware limited liability company
		
	52.	  	Covanta SEMASS II, LLC, a Delaware limited liability company
		
	53.	  	Covanta SEMASS, L.P., a Delaware limited partnership
		
	54.	  	Covanta Southeastern Connecticut Company, a Connecticut corporation
		
	55.	  	Covanta Southeastern Connecticut, L.P., a Delaware limited partnership
		
	56.	  	Covanta Springfield, LLC, a New York limited liability company
		
	57.	  	Covanta Union, Inc., a New Jersey corporation
		
	58.	  	Covanta Waste to Energy Asia Investments, Mauritius
		
	59.	  	Covanta Water Holdings, Inc., a Delaware corporation
		
	60.	  	Covanta Water Systems, Inc., a Delaware corporation
		
	61.	  	Generating Resource Recovery Partners L.P., a California limited partnership
		
	62.	  	Haverhill Power, LLC, a Massachusetts corporation
		
	63.	  	Koma Kulshan Associates LP, a California limited partnership
		
	64.	  	Mt. Lassen Power, a California corporation
		
	65.	  	Pacific Energy Operating Group, L.P., a California limited partnership
		
	66.	  	Pacific Energy Resources Incorporated, a California corporation
		
	67.	  	Pacific Hydropower Company, a California corporation
		
	68.	  	Pacific Oroville Power, Inc., a California corporation
		
	69.	  	Pacific Recovery Corporation, a California corporation
		
	70.	  	Pacific Ultrapower Chinese Station, a California general partnership
		
	71.	  	Pacific Wood Fuels Company, a California corporation
		
	72.	  	Penstock Power Company, a California corporation
		
	73.	  	SEMASS Partnership, a Massachusetts corporation
		
	74.	  	South Fork Associates, L.P., a California limited partnership
		
	75.	  	Stockton Landfill Gas LLC, a Delaware limited liability company
		
	76.	  	Thermendota, Inc., a California corporation
		
	77.	  	Bal-Sam India Holdings, Ltd., Mauritius
		
	78.	  	Covanta Bangladesh Operating Ltd., Bangladesh

			
		
	79.	  	Covanta Brig y Cwm Limited, United Kingdom
		
	80.	  	Covanta Burnaby Renewable Energy, Inc., Canada
		
	81.	  	Covanta Durham York Renewable Energy Limited Partnership, Canada
		
	82.	  	Covanta Energy (Ireland) Limited, Ireland
		
	83.	  	Covanta Energy (UK) Limited, United Kingdom
		
	84.	  	Covanta Energy Asia Holdings Ltd., Mauritius
		
	85.	  	Covanta Energy Asia Pacific Holdings, Ltd., China
		
	86.	  	Covanta Energy Asia Pacific Ltd., Hong Kong
		
	87.	  	Covanta Energy China (Delta) Ltd., Mauritius
		
	88.	  	Covanta Energy China (Gamma) Ltd., Mauritius
		
	89.	  	Covanta Energy India (Balaji) Limited, Mauritius
		
	90.	  	Covanta Energy India (CBM) Ltd., Mauritius
		
	91.	  	Covanta Energy India (Samalpatti) Ltd., Mauritius
		
	92.	  	Covanta Energy India Private Ltd., India
		
	93.	  	 Covanta Energy International Investments Limited (f/k/a Covanta Energy India
 Investments, Ltd.), Mauritius

		
	94.	  	Covanta Energy Limited, United Kingdom
		
	95.	  	Covanta Energy Philippines Holdings, Inc., Philippines
		
	96.	  	Covanta Europe Engineering Limited, Ireland
		
	97.	  	Covanta Europe Holdings S.a.r.l., Luxembourg
		
	98.	  	Covanta Europe Operations Limited, Ireland
		
	99.	  	Covanta Five Ltd., Mauritius
		
	100.	  	Covanta Four Ltd., Mauritius
		
	101.	  	Covanta Gold River Renewable Energy Limited Partnership, Canada
		
	102.	  	Covanta Holding Limited, United Kingdom
		
	103.	  	Covanta Ince Park LLP, United Kingdom
		
	104.	  	Covanta Mauritius O&M Ltd., Cayman Islands
		
	105.	  	Covanta One Ltd., Mauritius
		
	106.	  	Covanta RBWM Ltd., United Kingdom
		
	107.	  	Covanta Rookery South Ltd., United Kingdom
		
	108.	  	Covanta Three Ltd., Mauritius
		
	109.	  	Covanta Two Ltd., Mauritius
		
	110.	  	Covanta UK Engineering Ltd., United Kingdom
		
	111.	  	Covanta UK Operations Ltd., United Kingdom
		
	112.	  	Covanta Waste to Energy Asia Limited, Hong Kong
		
	113.	  	Covanta Waste to Energy Asia Ltd., Mauritius
		
	114.	  	Dublin Waste to Energy (Holdings) Limited, Ireland
		
	115.	  	Dublin Waste to Energy Limited, Ireland
		
	116.	  	Edison (Bataan) Cogeneration Corporation, Philippines
		
	117.	  	Enereurope Holdings III, B.V., Netherlands
		
	118.	  	GOA Holdings Ltd., Mauritius
		
	119.	  	Hidro Operaciones Don Pedro S.A., Costa Rica
		
	120.	  	Ince Park, LLP, United Kingdom
		
	121.	  	Ogden Energy (Gulf) Limited, Mauritius

			
		
	122.	  	Ogden Energy India (Bakreshwar) Ltd., Mauritius
		
	123.	  	Ogden Taiwan Investments Ltd., Mauritius
		
	124.	  	Olmec Insurance Ltd., Bermuda
		
	125.	  	Taixing Ogden-Yanjiang Cogeneration Co. Ltd., China
		
	126.	  	TransRiver Canada Incorporated, Canada

 EXHIBIT A 
 Intercompany Indebtedness 
 Master Intercompany Promissory Note dated March 28,
2012 made by each of the Covanta Parties.

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