Document:

EXHIBIT 10.4(b)(i)
                                                              ------------------

                                    AMENDMENT
                                       TO
                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS AMENDMENT (the "Amendment"), effective as of November 26, 2001, to
the Employment Agreement by and between Scott G. Mackin (the "Employee") and
Covanta Energy Corporation (f/k/a Ogden Corporation) (the "Company") and Covanta
Energy Group, Inc., dated as of October 1, 1998 (the "Agreement"), is by and
between the Company and the Employee.

                                 WITNESSETH THAT

       WHEREAS, the Company and the Employee are parties to and Covanta Energy
Group, Inc. wishes to become a party to the Agreement; and

       WHEREAS, the parties wish to amend the Agreement to reflect the change
from the Ogden Corporation to Covanta Energy Corporation, and to reflect the
Employee's new position and compensation and to revise the definition of Change
in Control;

       NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the Company and the Employee hereby agree to amend the
Agreement in the following respects, and only in the following respects, with
all other terms and conditions remaining in full force and effect as previously
agreed in the Agreement:

1.     All references in the Agreement to Ogden Corporation are hereby amended
to refer to Covanta Energy Corporation and Covanta Energy Group, Inc, and all
references to the Employee's title are hereby amended to refer to President and
Chief Executive Officer of the Company and President and Chief Executive Officer
of Covanta Energy Group, Inc.

2.     The last sentence of Section 4(a) of the Agreement shall be amended to
read as follows:

       "The minimum annual salary payable to the Employee under this Agreement
       shall be in the amount of $625,000, payable in equal monthly or bi-weekly
       installments."

3.     Appendix A to the Agreement shall be amended to read as follows:

       "The following definition of Change in Control shall apply for purposes
       of Paragraph 10(f) of the Agreement:

       Change in Control. Change in Control of the Company shall be deemed to
       have occurred as of the first day any one or more of the following
       conditions shall have been satisfied:

       (a) the acquisition by any person or group (within the meaning of Section
       13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended
       (the "Exchange Act")) of beneficial ownership (within the meaning of Rule
       13d-3 under the Exchange Act) of 25% or more of either (i) the then
       outstanding shares of common stock of the Company or (ii) the combined
       voting power of the then outstanding voting securities of the Company
       entitled to vote generally in the election of directors, provided that
       the following acquisitions shall not constitute a Change in Control: (i)
       any acquisition directly from the Company (excluding any acquisition by
       virtue of the exercise of a conversion privilege), (ii) any acquisition
       by the Company; (iii) any acquisition by any employee benefit plan (or
       related trust) sponsored or maintained by the Company, or any corporation
       controlled by the Company, or (iv) any acquisition by any corporation
       pursuant to a reorganization, merger or consolidation, if following such
       reorganization, merger or consolidation the conditions described in
       clause (iii) of paragraph (c) below are met.

       (b) Individuals who, as of May 20, 1998 constitute the Board of Directors
       of the Company (the "Incumbent Board") cease for any reason to constitute
       at least a majority of the Board; provided, however, that any individual
       becoming a director subsequent to May 20, 1998 whose election, or
       nomination for election by the Company shareholders, was approved by a
       vote of at least a majority of the directors then comprising the
       Incumbent Board shall be considered as though such individual were a
       member of the Incumbent Board, but excluding, for this purpose, any such
       individual whose initial assumption of office occurs as a result of an
       actual or threatened election contest with respect to the election or
       removal of directors or other actual or threatened solicitation of
       proxies or consents by or on behalf of a person other than the Board; or

       (c) The stockholders of the Company approve: (i) a plan of complete
       liquidation of the Company; or (ii) an agreement for the sale or
       disposition of all or substantially all the Company's assets; or (iii) a
       merger, consolidation, or reorganization of the Company with or involving
       any other corporation, limited liability entity or similar person, other
       than a merger, consolidation, or reorganization that would result in the
       voting securities of the Company outstanding immediately prior thereto
       continuing to represent (either by remaining outstanding or by being
       converted into voting securities of the surviving entity) at least
       seventy-five percent (75%) of the combined voting power of the voting
       securities of the Company (or such surviving entity) outstanding
       immediately after such merger, consolidation, or reorganization."

       All provisions of the Agreement not specifically mentioned in this
Amendment shall be considered modified to the extent necessary to be consistent
with the changes made by this Amendment.

       IN WITNESS WHEREOF, the Employee has hereunto set his hand and the
Company has caused this Amendment to be executed.

ATTEST:                                  COVANTA ENERGY CORPORATION

    /s/ Jeffrey R. Horowitz                  /s/ Stephen M. Gansler
--------------------------------         --------------------------------
                                         By:  Stephen M. Gansler
                                         Its: Vice President, Human Resources
                                         Date:

                                         COVANTA ENERGY GROUP, Inc.

    /s/ Jeffrey R. Horowitz                  /s/ Stephen M. Gansler
--------------------------------         --------------------------------
                                         By:  Stephen M. Gansler
                                         Its: Vice President, Human Resources
                                         Date:

                                         SCOTT G. MACKIN

                                              /s/ Scott G. Mackin
                                         --------------------------------
                                         Scott G. Mackin
                                         Date:EXHIBIT 10.4(b)(ii)
                                                             -------------------

           SUPPLEMENTAL AGREEMENT TO CONSOLIDATED AMENDED AND RESTATED
                                  DEMAND NOTE
                                  -----------

THIS SUPPLEMENTAL AGREEMENT TO CONSOLIDATED AND AMENDED DEMAND NOTE (the
"Agreement"), is made effective as of November 26, 2001, between Scott G. Mackin
("Mackin") and Covanta Energy Corporation (f.k.a., Ogden Corporation)
("Covanta").

                              W I T N E S S E T H :

WHEREAS, Mackin and Covanta are entering into a Consolidated Amended and
Restated Demand Note (the "Consolidated Amended and Restated Demand Note")
simultaneous with the execution of this Agreement; and

WHEREAS, Mackin and Covanta wish to set forth in this Agreement certain of their
additional rights and obligations relating to such Consolidated Amended and
Restated Demand Note.

NOW, THEREFORE, in consideration of the mutual grants and covenants contained in
the Consolidated Amended and Restated Demand Note and herein, and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties do hereby agree as follows:

         1. Consistent Reporting. Covanta and Mackin each shall report, to every
applicable government authority (including the Internal Revenue Service),
ordinary income characterized as compensation in the amount of $212,212, which
represents the difference between the aggregate principal and accrued interest
due on that certain (i) Demand Note made by Mackin to and in favor of Covanta
dated August 6, 1999, in the principal amount of $401,800.98, and (ii) Demand
Note made by Mackin to and in favor of Covanta dated August 6, 1999, in the
principal amount of $104,037.06 as of November 26, 2001, and the aggregate "Fair
Market Value" of the "Shares" (as these terms are defined in the Consolidated
Amended and Restated Demand Note) held by Mackin on that day.

         2. Payment of Bonus. Covanta shall pay Mackin a bonus in the amount of
$254,146.

         3. Providing Documentation of Tax Benefits. Mackin shall provide
Covanta with documentation detailing the use of any item arising from or
attributable to the execution of the Consolidated Amended and Restated Demand
Note, including but not limited to the use of capital losses and/or interest
deductions, and any tax benefit accruing to Mackin therefrom that reduces the
tax liability as shown on his return filed in accordance with Section 1 above.
Mackin shall also provide Covanta with documentation detailing any adjustment,
regardless of the source, relating to his tax return filed in accordance with
Section 1 above, and the extent that Mackin realizes a tax benefit from such
adjustment. To the extent Mackin realizes a tax benefit from any such use or
adjustment, Covanta may (i) require immediate payment from Mackin in an amount
equal to this tax benefit or (ii) offset other payments due to Mackin by the
amount of this tax benefit. To the extent required by Covanta, Mackin shall
provide to Covanta's independent tax preparer a copy of his tax return for any
tax years beginning in 2001 and ending on the later of the time when all items
arising from or attributable to the execution of the Consolidated Amended and
Restated Demand Note have expired or have been used, or the time when the
statute of limitations for adjustments to be made to Mackin's tax return filed
in accordance with Section 1 above has expired.

         4. Indemnification for Unexpected Tax Liability. Covanta shall
indemnify Mackin against any additional taxes and penalties that result from a
final determination by an applicable governmental authority (with which a return
was filed as provided in Section 1 above) that the amount of compensation income
resulting from the execution of the Consolidated Amended and Restated Demand
Note exceeds the amount set forth in Section 1 hereof. Covanta shall also
indemnify Mackin against any additional taxes and penalties that may result in
the event that a final determination is made by an applicable governmental
authority that Mackin has compensation in the future as a result of interest
that is imputed on the Consolidated Amended and Restated Demand Note (net of any
tax benefits that may accrue to Mackin as a result of such imputation, such as
an interest deduction).

                                           COVANTA ENERGY CORPORATION

                                           /s/ Stephen M. Gansler
                                           --------------------------
                                           By:  Stephen M. Gansler
                                           Its: Vice President, Human Resources

                                           SCOTT G. MACKIN

                                           /s/ Scott G. Mackin
                                           --------------------------

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