Document:

<PAGE>

                                                                    EXHIBIT 10.1

================================================================================

                          CREDIT AGREEMENT dated as of

                                 July 21, 1999,

                          as amended and restated as of

                                 April 29, 2003

                                      among

                         ALLIED WASTE INDUSTRIES, INC.,

                        ALLIED WASTE NORTH AMERICA, INC.,

                            The Lenders Party Hereto,

                              JPMORGAN CHASE BANK,

                  as Administrative Agent and Collateral Agent,

                          CITICORP NORTH AMERICA, INC.,

                              as Syndication Agent,

                                       and

                                UBS WARBURG LLC,

                           CREDIT SUISSE FIRST BOSTON,
                               ACTING THROUGH ITS
                             CAYMAN ISLANDS BRANCH,

                                       and

                         DEUTSCHE BANK SECURITIES INC.,

                           as Co-Documentation Agents

               ---------------------------------------------------

         J.P. MORGAN SECURITIES INC. and CITIGROUP GLOBAL MARKETS INC.,

                                       as

                   Joint Lead Arrangers and Joint Bookrunners

================================================================================

<PAGE>

<TABLE>
<CAPTION>
                                                                                                       Page

                                                 ARTICLE I

                                                Definitions
<S>                                                                                                    <C>
SECTION 1.01.     Defined Terms.....................................................................     2
SECTION 1.02.     Classification of Loans and Borrowings............................................    44
SECTION 1.03.     Terms Generally...................................................................    45
SECTION 1.04.     Accounting Terms; GAAP............................................................    45

                                                 ARTICLE II

                                                The Credits

SECTION 2.01.     Commitments.......................................................................    45
SECTION 2.02.     Loans and Borrowings..............................................................    46
SECTION 2.03.     Requests for Borrowings...........................................................    46
SECTION 2.04.     Swingline Loans...................................................................    47
SECTION 2.05.     Letters of Credit.................................................................    49
SECTION 2.06.     Funding of Borrowings.............................................................    56
SECTION 2.07.     Interest Elections................................................................    57
SECTION 2.08.     Termination and Reduction of Commitments; Return of Tranche A Credit-Linked
                  Deposits..........................................................................    58
SECTION 2.09.     Repayment of Loans; Evidence of Debt..............................................    59
SECTION 2.10.     Amortization of Term Loans and Tranche A Credit-Linked Deposits...................    60
SECTION 2.11.     Prepayment of Loans...............................................................    61
SECTION 2.12.     Fees..............................................................................    64
SECTION 2.13.     Interest..........................................................................    65
SECTION 2.14.     Alternate Rate of Interest........................................................    66
SECTION 2.15.     Increased Costs...................................................................    67
SECTION 2.16.     Break Funding Payments............................................................    68
SECTION 2.17.     Taxes.............................................................................    69
SECTION 2.18.     Payments Generally; Pro Rata Treatment; Sharing of Setoffs........................    72
SECTION 2.19.     Mitigation Obligations; Replacement of Lenders....................................    73
SECTION 2.20.     Credit-Linked Deposit Account.....................................................    74
SECTION 2.21.     Incremental Term Loans............................................................    75
SECTION 2.22.     Funded Letter of Credit Facility..................................................    76

                                                ARTICLE III

                                       Representations and Warranties

SECTION 3.01.     Organization; Powers..............................................................    78
SECTION 3.02.     Authorization.....................................................................    78
SECTION 3.03.     Enforceability....................................................................    79
SECTION 3.04.     Governmental Approvals............................................................    79
SECTION 3.05.     Financial Statements..............................................................    79
SECTION 3.06.     No Material Adverse Change........................................................    80
SECTION 3.07.     Title to Properties; Possession Under Leases......................................    80
SECTION 3.08.     Subsidiaries; Other Equity Investments............................................    80
SECTION 3.09.     Litigation; Compliance with Laws..................................................    81
SECTION 3.10.     Agreements........................................................................    81
SECTION 3.11.     Federal Reserve Regulations.......................................................    81
</TABLE>

<PAGE>

                                                                              ii

<TABLE>
<S>                                                                                                    <C>
SECTION 3.12.     Investment Company Act; Public Utility Holding Company Act........................    82
SECTION 3.13.     Tax Returns.......................................................................    82
SECTION 3.14.     No Material Misstatements.........................................................    82
SECTION 3.15.     Employee Benefit Plans............................................................    82
SECTION 3.16.     Environmental Matters.............................................................    83
SECTION 3.17.     Insurance.........................................................................    84
SECTION 3.18.     Labor Matters.....................................................................    84
SECTION 3.19.     Solvency..........................................................................    84
SECTION 3.20.     Intellectual Property.............................................................    84
SECTION 3.21.     Senior Indebtedness...............................................................    85
SECTION 3.22.     Security Interests................................................................    85

                                                 ARTICLE IV

                                                 Conditions

SECTION 4.01.     Restatement Effective Date........................................................    86
SECTION 4.02.     Each Credit Event.................................................................    90
SECTION 4.03.     Determinations Under Section 4.01.................................................    90

                                                 ARTICLE V

                                           Affirmative Covenants

SECTION 5.01.     Existence; Businesses and Properties..............................................    91
SECTION 5.02.     Insurance.........................................................................    92
SECTION 5.03.     Obligations and Taxes.............................................................    92
SECTION 5.04.     Financial Statements, Reports, Etc................................................    93
SECTION 5.05.     Litigation and Other Notices......................................................    95
SECTION 5.06.     Employee Benefits.................................................................    95
SECTION 5.07.     Maintaining Records; Access to Properties and Inspections.........................    95
SECTION 5.08.     Environmental Laws................................................................    96
SECTION 5.09.     Preparation of Environmental Reports..............................................    97
SECTION 5.10.     Further Assurances................................................................    97
SECTION 5.11.     Compliance with Terms of Leaseholds...............................................    99
SECTION 5.12.     Performance of Material Agreements................................................    99
SECTION 5.13.     Information Regarding Collateral..................................................    99
SECTION 5.14.     Casualty and Condemnation........................................................    100
SECTION 5.15.     Compliance with Laws.............................................................    100
SECTION 5.16.     Use of Proceeds and Letters of Credit............................................    100
SECTION 5.17.     Interest Rate Protection.........................................................    100
SECTION 5.18.     Delivery of Collateral...........................................................    101
SECTION 5.19.     Termination of Liens.............................................................    101

                                                 ARTICLE VI

                                             Negative Covenants

SECTION 6.01.     Indebtedness; Certain Equity Securities..........................................    101
SECTION 6.02.     Liens............................................................................    105
SECTION 6.03.     No Other Negative Pledge.........................................................    107
SECTION 6.04.     Sale and Lease-Back Transactions.................................................    107
SECTION 6.05.     Investments, Loans, Guarantees and Acquisitions..................................    108
SECTION 6.06.     Mergers, Consolidations, Sales of Assets and Acquisitions........................    110
</TABLE>

<PAGE>

                                                                             iii

<TABLE>
<S>                                                                                                    <C>
SECTION 6.07.     Hedging Agreements...............................................................    112
SECTION 6.08.     Restricted Payments; Certain Payments of Indebtedness............................    112
SECTION 6.09.     Transactions with Affiliates.....................................................    115
SECTION 6.10.     Business of Allied Waste, Borrower and Subsidiaries..............................    116
SECTION 6.11.     Other Indebtedness and Agreements................................................    117
SECTION 6.12.     Amendment of Material Documents..................................................    117
SECTION 6.13.     Interest Coverage Ratio..........................................................    118
SECTION 6.14.     Leverage Ratio...................................................................    118
SECTION 6.15.     Capital Expenditures.............................................................    118
SECTION 6.16.     Designation of Unrestricted Subsidiaries.........................................    119
SECTION 6.17.     Commingling of Accounts..........................................................    119

                                                ARTICLE VII

                                      Events of Default; Right To Cure

SECTION 7.01.     Events of Default................................................................    119
SECTION 7.02.     Borrower's Right to Cure.........................................................    123

                                                ARTICLE VIII

                                          The Administrative Agent

                                                 ARTICLE IX

                                               Miscellaneous

SECTION 9.01.     Notices..........................................................................    126
SECTION 9.02.     Waivers; Amendments..............................................................    126
SECTION 9.03.     Expenses; Indemnity; Damage Waiver...............................................    129
SECTION 9.04.     Successors and Assigns...........................................................    131
SECTION 9.05.     Survival.........................................................................    137
SECTION 9.06.     Counterparts; Integration; Effectiveness.........................................    137
SECTION 9.07.     Severability.....................................................................    137
SECTION 9.08.     Right of Setoff..................................................................    138
SECTION 9.09.     Governing Law; Jurisdiction; Consent to Service of Process.......................    138
SECTION 9.10.     WAIVER OF JURY TRIAL.............................................................    139
SECTION 9.11.     Headings.........................................................................    139
SECTION 9.12.     Confidentiality..................................................................    139
SECTION 9.13.     Interest Rate Limitation.........................................................    140
SECTION 9.14.     Securitization Vehicles..........................................................    140
</TABLE>

       SCHEDULES:

       Schedule 2.01        --    Commitments; Tranche A Credit-Linked
                                  Deposits

       Schedule 2.05        --    Existing Letters of Credit

       Schedule 3.07        --    Landfills

       Schedule 3.08        --    Subsidiaries; Equity Investments

       Schedule 3.09        --    Litigation

<PAGE>

                                                                              iv

       Schedule 3.15        --    Employee Benefit Plans

       Schedule 3.16        --    Environmental Matters

       Schedule 3.17        --    Insurance

       Schedule 6.01        --    Existing Indebtedness

       Schedule 6.02(a)     --    Existing Liens

       Schedule 6.02(b)     --    Existing Liens To Be Released

       Schedule 6.05        --    Investments

       Schedule 6.08        --    Required Joint Venture Restricted Payments

       EXHIBITS:

       Exhibit A            --    Form of Assignment and Acceptance

       Exhibit B            --    Form of Amended and Restated Collateral
                                  Trust Agreement

       Exhibit C            --    Form of Amended and Restated Indemnity,
                                  Subrogation and Contribution Agreement

       Exhibit D            --    Form of Amended and Restated Non-Shared
                                  Collateral Pledge Agreement

       Exhibit E            --    Form of Amended and Restated Non-Shared
                                  Collateral Security Agreement

       Exhibit F            --    Form of Amended and Restated Parent
                                  Guarantee Agreement

       Exhibit G-1          --    Form of Non-Shared Collateral Perfection
                                  Certificate

       Exhibit G-2          --    Form of Shared Collateral Perfection
                                  Certificate

       Exhibit H            --    Form of Amended and Restated Shared
                                  Collateral Pledge Agreement

       Exhibit I            --    Form of Amended and Restated Shared
                                  Collateral Security Agreement

       Exhibit J            --    Form of Amended and Restated Subsidiary
                                  Guarantee Agreement

       Exhibit K-1          --    Form of Legal Opinion of Latham & Watkins LLP

       Exhibit K-2          --    Form of Legal Opinion of Steven M. Helm

<PAGE>

                                                                               v

       Exhibit L            --    Form of Portfolio Exemption Certificate

<PAGE>

                           CREDIT AGREEMENT dated as of July 21, 1999, as
                      amended and restated as of April 29, 2003, among ALLIED
                      WASTE INDUSTRIES, INC., ALLIED WASTE NORTH AMERICA, INC.,
                      the LENDERS party hereto, JPMORGAN CHASE BANK, as
                      Administrative Agent and Collateral Agent, CITICORP NORTH
                      AMERICA, INC., as Syndication Agent, and UBS WARBURG LLC,
                      CREDIT SUISSE FIRST BOSTON, acting through its Cayman
                      Islands Branch, and DEUTSCHE BANK SECURITIES INC., as
                      Co-Documentation Agents.

                  On the Effective Date (such term and each other capitalized
term used but not otherwise defined in this preamble having the meaning assigned
to it in Article I below), the Borrower, Allied Waste, the Administrative Agent
and certain of the Lenders entered into this Agreement pursuant to which certain
of the Lenders thereunder agreed to extend credit to the Borrower on a revolving
credit basis and to make term loans to the Borrower. The parties hereto desire
to amend this Agreement and to restate it in its entirety giving effect to such
amendment.

                  Between March 1, 2003 and April 15, 2003, Allied Waste and the
Borrower consummated a series of transactions pursuant to which (a) Allied Waste
issued common stock in an underwritten public offering (the "Common Equity
Offering") for aggregate gross cash proceeds of $100,000,000, (b) Allied Waste
issued its 6-1/4% Series C Senior Mandatory Convertible Preferred Stock in a
public offering (the "Mandatory Convertible Offering", and together with the
Common Equity Offering, the "Equity Offerings") for aggregate gross cash
proceeds of $345,000,000, (c) the Borrower issued $450,000,000 aggregate
principal amount of 7 7/8% Senior Notes due 2013 (the "2003 Senior Notes") in a
public offering (the "Senior Note Offering") and (d) a Securitization Vehicle
issued Third Party Securities in an aggregate principal amount of $149,000,000
in connection with a Securitization (the "March 2003 Securitization"). On the
Restatement Effective Date, (a) this Agreement will be amended and restated in
the form hereof and (b) all loans outstanding under the Original Credit
Agreement will be repaid and the lending commitments under the Original Credit
Agreement will be replaced by the Commitments. The Equity Offerings, the Senior
Note Offering, the March 2003 Securitization, the amendment and restatement of
this Agreement and the repayment of loans and replacement of commitments under
the Original Credit Agreement shall be collectively referred to herein as the
"Recapitalization".

                  The Borrower has requested the Lenders to extend credit
hereunder in the form of Term Loans to be made on the Restatement Effective Date
in an aggregate principal amount of $1,200,000,000, Tranche A Credit-Linked
Deposits to be made on the Restatement Effective Date in an aggregate amount of
$200,000,000, Revolving Loans, Revolving Letters of Credit and Swingline Loans
to be made or issued at any time and from time to time on or after the
Restatement Effective Date and prior to the Revolving Maturity Date in an
aggregate principal or face amount at any time outstanding not in excess of
$1,500,000,000 and Tranche A Letters of Credit to be issued at any time and from
time to time on and after the Restatement Effective Date and prior to the
Tranche A Maturity Date in an aggregate amount at any time outstanding

<PAGE>

                                                                               2

not in excess of $200,000,000, (subject to the limitations set forth herein).

                  The proceeds of the Term Loans and the Revolving Loans made on
the Restatement Effective Date will be used, together with the proceeds of the
Equity Offerings, the March 2003 Securitization and the Senior Note Offering,
(i) to repay all amounts due or outstanding under the Original Credit Agreement
on the Restatement Effective Date and (ii) to pay fees and expenses incurred in
connection with the Transactions. The proceeds of Revolving Loans and Swingline
Loans made after the Restatement Effective Date will be used solely for general
corporate purposes. Letters of Credit will be used solely to support payment
obligations of the Borrower and the Subsidiaries incurred in the ordinary course
of business.

                  The Lenders and the Swingline Lenders are willing to extend
such credit and the Issuing Banks are willing to issue Letters of Credit on the
terms and subject to the conditions set forth herein. Accordingly, in
consideration of the mutual agreements herein contained and other good and
valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, the parties hereto agree that this Agreement shall, upon
satisfaction of the conditions set forth in Section 4.01, be amended and
restated to read in its entirety as follows:

                                   ARTICLE I

                                   Definitions

                  SECTION 1.01. Defined Terms. As used in this Agreement, the
  following terms have the meanings specified below:

                  "ABR", when used in reference to any Loan or Borrowing, means
that such Loan, or the Loans comprising such Borrowing, are bearing interest at
a rate determined by reference to the Alternate Base Rate.

                  "Acquired Business" means (a) any Person substantially all of
the capital stock or other ownership interests of which is acquired after the
date hereof by Allied Waste and/or a Restricted Subsidiary and (b) any assets
constituting a discrete business or operating unit acquired on or after the date
hereof by Allied Waste or a Restricted Subsidiary, in each case in accordance
with the terms of this Agreement.

                  "Acquired Indebtedness" means Indebtedness of an Acquired
Business outstanding on the date such Acquired Business was acquired by Allied
Waste and/or one of its Restricted Subsidiaries.

                  "Acquisition Consideration" means, with respect to any
acquisition, the aggregate amount of consideration paid by the members of the
Allied Group in connection therewith, including, without limitation (but without
duplication):

<PAGE>

                                                                               3

                  (1) the aggregate amount of cash paid and the aggregate fair
         market value of noncash property delivered by members of the Allied
         Group in connection with such acquisition;

                  (2) the aggregate amount of Indebtedness retained by the
         Acquired Business; and

                  (3) the aggregate amount of Indebtedness of the Acquired
         Business or the sellers thereof (other than those referred to in clause
         (2) above) assumed by the members of the Allied Group in connection
         with such acquisition,

but in any event shall exclude (x) common stock, Preferred Stock (other than
Cash-Pay Preferred Stock) and other Non-Cash-Pay Equity Interests issued by
Allied Waste in connection with such acquisition, (y) payment obligations of
members of the Allied Group based on post-acquisition performance of the
Acquired Business and (z) liabilities for which members of the Allied Group have
received indemnification or other financial assurances from or on behalf of the
transferor (so long as the obligors on such indemnification or other financial
assurances are, in the reasonable opinions of the Initial Lenders and the
Borrower, creditworthy).

                  "Additional Funded LC Amendment" has the meaning set forth in
Section 2.22.

                  "Additional Funded LC Commitment" has the meaning set forth in
Section 2.22.

                  "Additional Funded LC Facility" has the meaning set forth in
Section 2.22.

                  "Additional Funded LC Facility Notice" has the meaning set
forth in Section 2.22.

                  "Additional Funded LC Lender" has the meaning assigned to such
term in Section 2.22.

                  "Additional Funded LC Offer Period" has the meaning set forth
in Section 2.22.

                  "Additional Term Loan Lender" has the meaning assigned to such
term in Section 2.21.

                  "Adjusted LIBO Rate" means, with respect to any Eurodollar
Borrowing for any Interest Period, an interest rate per annum (rounded upwards,
if necessary, to the next 1/100 of 1%) equal to (a) the LIBO Rate for such
Interest Period multiplied by (b) the Statutory Reserve Rate.

                  "Administrative Agent" means JPMorgan Chase Bank, in its
capacity as administrative agent and collateral agent for the Lenders hereunder.

                  "Administrative Questionnaire" means an Administrative
Questionnaire in a form supplied by the Administrative Agent.

<PAGE>

                                                                               4

                  "Affiliate" means, with respect to a specified Person, another
Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified.

                  "Allied Group" means, collectively, Allied Waste and Allied
Waste's Restricted Subsidiaries (including, without limitation, the Borrower),
and a "member" of the Allied Group means Allied Waste and each of Allied Waste's
Restricted Subsidiaries.

                  "Allied Guarantee" means the supplemental indenture dated as
of July 21, 1999 among Allied Waste, AWNA and JPMorgan Chase Bank (formerly
Chase Bank of Texas, N.A.), as Trustee, pursuant to which Allied Waste and AWNA
guarantee the BFI Indenture Debt.

                  "Allied Waste" means Allied Waste Industries, Inc., a Delaware
corporation.

                  "Alternate Base Rate" means, for any day, a rate per annum
equal to the greater of (a) the Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in
the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate.

                  "Apollo" means Apollo Management IV, L.P. or its Permitted
Transferees (exclusive of the Allied Group).

                  "Applicable Margin" means, for any day, (a) with respect to
any ABR Term Loan, (i) 2.25% per annum at such times when the then current
Leverage Ratio is greater than or equal to 4.25 to 1.00 and (ii) 2.00% per annum
at such times when the then current Leverage Ratio is less than 4.25 to 1.00,
(b) with respect to any Eurodollar Term Loan, (i) 3.25% per annum at such times
when the then current Leverage Ratio is greater than or equal to 4.25 to 1.00
and (ii) 3.00% per annum at such times when the then current Leverage Ratio is
less than 4.25 to 1.00 and (c) with respect to any ABR Revolving Loan or
Eurodollar Revolving Loan, the applicable interest rate margin per annum set
forth below under the caption "ABR Spread" or "Eurodollar Spread", as the case
may be, based upon the Leverage Ratio as of the most recent determination date;
provided that the ABR Spread relating to Swingline Loans, whenever the Leverage
Ratio is in Category 2, 3, 4 or 5, will be .25% lower than the ABR Spread
reflected in the table below; and provided further that, until the delivery
pursuant to Section 5.04(b) of Allied Waste's Consolidated financial statements
for the fiscal quarter ending June 30, 2003, the "Applicable Margin" for
purposes of this clause (c) shall be the applicable rate per annum set forth
below in Category 2:

<PAGE>

                                                                               5

<TABLE>
<CAPTION>
                                                      ABR          Eurodollar
             Leverage Ratio:                         Spread          Spread
-----------------------------------------------------------------------------
<S>                                                  <C>           <C>
               Category 1                             2.25%          3.25%
Greater than or equal to 5.25 to 1.00
-----------------------------------------------------------------------------
               Category 2                             2.00%          3.00%
Greater than or equal to 4.75 to 1.00 but
          less than 5.25 to 1.00
-----------------------------------------------------------------------------
               Category 3                             1.75%          2.75%
Greater than or equal to 4.25 to 1.00 but
          less than 4.75 to 1.00
-----------------------------------------------------------------------------
               Category 4                             1.50%          2.50%
Greater than or equal to 3.75 to 1.00 but
          less than 4.25 to 1.00
-----------------------------------------------------------------------------
               Category 5                             1.25%          2.25%
        Less than 3.75 to 1.00
-----------------------------------------------------------------------------
</TABLE>

                For purposes of the foregoing, (i) the Leverage Ratio shall be
determined as of the end of each fiscal quarter of the Borrower's fiscal year
based upon Allied Waste's Consolidated financial statements delivered pursuant
to Section 5.04(a) or (b) and (ii) each change in the Applicable Margin
resulting from a change in the Leverage Ratio shall be effective during the
period commencing on and including the date of delivery to the Administrative
Agent of such Consolidated financial statements indicating such change and
ending on the date immediately preceding the effective date of the next such
change; provided that the Leverage Ratio shall be deemed to be in Category 1 (A)
at any time that an Event of Default has occurred and is continuing or (B) at
the option of the Administrative Agent or at the request of the Required Lenders
if the Borrower fails to deliver the Consolidated financial statements required
to be delivered by it pursuant to Section 5.04(a) or (b), during the period from
and including the last date for timely delivery thereof (without regard to any
applicable grace period) until the date on which such Consolidated financial
statements are delivered.

                  "Applicable Percentage" means, (a) with respect to any
Revolving Lender, the percentage of the total Revolving Commitments represented
by such Lender's Revolving Commitment and (b) with respect to any Tranche A
Lender, the percentage of the Total Tranche A Credit-Linked Deposit represented
by such Lender's Tranche A Credit-Linked Deposit. If the Revolving Commitments
have terminated or expired, the Applicable Percentages with respect to any
Revolving Lender shall be determined based upon the Revolving Commitments most
recently in effect, giving effect to any assignments. If the Tranche A
Credit-Linked Deposits shall have been applied in full to reimburse Tranche A LC
Disbursements, the Applicable Percentage with respect to any Tranche A Lender
shall be determined based upon the Total Tranche A Credit-Linked Deposit most
recently in effect, giving effect to any assignments.

<PAGE>

                                                                               6

                  "Approved Fund" means (a) with respect to any Lender, a CLO
managed by such Lender or by an Affiliate of such Lender and (b) with respect to
any Lender that is a fund which invests in bank loans and similar extensions of
credit, any other fund that invests in bank loans and similar extensions of
credit and is managed by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

                  "Asset Sale" means any sale, lease, assignment, transfer or
other disposition of any property (whether now owned or hereafter acquired,
whether in one transaction or a series of related transactions and whether by
way of merger or otherwise) by any member of the Allied Group, including,
without limitation, any such sale, assignment, transfer or other disposition of
any capital stock or other ownership interests of any of Allied Waste's
Subsidiaries and any sale or securitization of accounts receivable (other than
assignments of accounts receivable for purposes of collection in the ordinary
course of business), but excluding dispositions of obsolete inventory or
equipment and sales of inventory and equipment, in each case, in the ordinary
course of business.

                  "Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an assignee (with the consent of any party whose
consent is required by Section 9.04), and accepted by the Administrative Agent,
in the form of Exhibit A or any other form approved by the Administrative Agent.

                  "Attributable Debt" means, with respect to any Sale and
Leaseback Transaction, the present value (computed in accordance with GAAP as if
the obligations incurred in connection with such Sale and Leaseback Transaction
were Capital Lease Obligations) of the total obligations of the lessee for
rental payments during the remaining term of the lease included in such Sale and
Leaseback Transaction (including any period for which such lease has been
extended). In the case of any lease which is terminable by the lessee upon
payment of a penalty, the Attributable Debt shall be the lesser of (i) the
Attributable Debt determined assuming termination upon the first date such lease
may be terminated (in which case the Attributable Debt shall also include the
amount of the penalty, but no rent shall be considered as required to be paid
under such lease subsequent to the first date upon which it may be so
terminated) and (ii) the Attributable Debt determined assuming no such
termination. Any determination of any rate implicit in the terms of the lease
included in such Sale and Leaseback Transaction made in accordance with
generally accepted financial practices by the Borrower shall be binding and
conclusive absent manifest error.

                  "AWNA" means the Borrower.

                  "AWNA-BFI Subsidiaries" means the limited liability companies
that are Subsidiaries of AWNA, but not of BFI, and that became parties to the
Shared Collateral Security Agreement in connection with the transfer to them in
July 2002 of certain assets and businesses owned by BFI and its Subsidiaries.

                  "AWNA Senior Note Indenture" means the Indenture dated as of
December 23, 1998, among AWNA, Allied Waste, various Subsidiaries, and U.S. Bank
Trust National Association, as Trustee, including all

<PAGE>

                                                                               7

amendments thereto and all supplements thereto (other than any 2001 Indenture),
as in effect on the Restatement Effective Date, and as thereafter amended or
supplemented in accordance with the provisions of this Agreement.

                  "AWNA Senior Notes" means the senior notes of AWNA issued
pursuant to the AWNA Senior Note Indenture.

                  "Bank Indebtedness" means any and all amounts payable under or
in respect of this Agreement and the other Loan Documents in respect of the
Obligations, as amended from time to time, including principal, premium, (if
any), interest (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization relating to the Borrower whether or
not a claim for post-filing interest is allowed in such proceedings), fees,
charges, expenses, reimbursement obligations, guarantees and all other amounts
payable thereunder or in respect thereof.

                  "Benchmark LIBOR Rate" shall have the meaning assigned to such
term in Section 2.20(b).

                  "BFI" means Browning-Ferris Industries, Inc., a Delaware
corporation.

                  "BFI Indenture" means the Restated Indenture dated as of
September 1, 1991, between BFI and JPMorgan Chase Bank (formerly Chase Bank of
Texas, N.A.), as successor trustee to First City Texas-Houston, N.A., including
all supplements, amendments and modifications thereto, as in effect on the
Restatement Effective Date, and as thereafter amended in accordance with the
provisions of this Agreement.

                  "BFI Indenture Debt" means the senior notes of BFI issued
pursuant to the BFI Indenture and outstanding on the Restatement Effective Date.

                  "Blackstone" means the collective reference to (i) Blackstone
Capital Partners III Merchant Banking Fund L.P., a Delaware limited partnership,
Blackstone Capital Partners II Merchant Banking Fund L.P., a Delaware limited
partnership, Blackstone Offshore Capital Partners III L.P., a Cayman Islands
limited partnership, Blackstone Offshore Capital Partners II L.P., a Cayman
Islands limited partnership, Blackstone Family Investment Partnership III L.P.,
a Delaware limited partnership, and Blackstone Family Investment Partnership II
L.P., a Cayman Islands limited partnership (each of the foregoing, a "Blackstone
Fund") and (ii) each Affiliate of any Blackstone Fund that is not an operating
company or Controlled by an operating company and each general partner of any
Blackstone Fund or any Blackstone Affiliate who is a partner or employee of The
Blackstone Group L.P.

                  "Board" means the Board of Governors of the Federal Reserve
System of the United States of America.

                  "Borrower" means Allied Waste North America, Inc., a Delaware
corporation.

<PAGE>

                                                                               8

                  "Borrower's Portion of Excess Cash Flow" in respect of any
Excess Cash Flow Calculation Period means 50% of Excess Cash Flow for such
period.

                  "Borrowing" means (a) Loans of the same Class and Type made,
converted or continued on the same date and, in the case of Eurodollar Loans, as
to which a single Interest Period is in effect or (b) a Swingline Loan.

                  "Borrowing Request" means a request by the Borrower for a
Borrowing in accordance with Section 2.03.

                  "Business Day" means any day that is not a Saturday, Sunday or
other day on which commercial banks in New York City or Phoenix, Arizona are
authorized or required by law to remain closed; provided that, when used in
connection with a Eurodollar Loan, the term "Business Day" shall also exclude
any day on which banks are not open for dealings in dollar deposits in the
London interbank market.

                  "Capital Expenditures" means, for any period, expenditures
(including the aggregate amount of Capital Lease Obligations incurred during
such period) made by Allied Waste or any of its Restricted Subsidiaries to
acquire or construct fixed assets, plant and equipment (including renewals,
improvements and replacements, but excluding repairs unless such repairs are
required to be capitalized in accordance with GAAP) during such period computed
in accordance with GAAP; provided that Capital Expenditures shall not include
(a) expenditures classified as Permitted Acquisitions, (b) expenditures made by
an Acquired Business prior to the time such Acquired Business was acquired by
Allied Waste or any of its Restricted Subsidiaries pursuant to a Permitted
Acquisition, (c) expenditures made with the proceeds of condemnation awards or
insurance for fixed assets, plant and equipment, (d) expenditures made to
acquire capital assets made with the proceeds of Asset Sales not required to be
applied to the mandatory prepayment of Loans hereunder, (e) interest capitalized
during such period, (f) expenditures that are accounted for as capital
expenditures of such Person and that actually are paid for by a third party
(excluding Allied Waste or any Restricted Subsidiary) and for which neither
Allied Waste nor any Restricted Subsidiary has provided or is required to
provide or incur, directly or indirectly, any consideration or obligation to
such third party or any other person (whether before, during or after such
period) and (g) the book value of any asset owned by such Person prior to or
during such period to the extent such book value is included as a capital
expenditure during such period as a result of such person reusing or beginning
to reuse such asset during such period without a corresponding expenditure
actually having been made in such period; provided that any expenditure
necessary in order to permit such asset to be reused shall be included as a
Capital Expenditure during the period that such expenditure actually is made and
such book value shall have been included in Capital Expenditures when such asset
was originally acquired.

                  "Capital Lease Obligations" of any Person means the
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to

<PAGE>

                                                                               9

be classified and accounted for as capital leases on a balance sheet of such
Person under GAAP, and the amount of such obligations shall be the capitalized
amount thereof determined in accordance with GAAP.

                  "Cash Equivalents" means Permitted Investments.

                  "Cash-Pay Preferred Stock" means (a) for purposes of the
definition of Consolidated Interest Expense, Preferred Stock of any member of
the Allied Group that by its terms requires the periodic payment of cash
dividends or in respect of which the issuer has declared or paid cash dividends
and (b) for all other purposes (including the definitions of Indebtedness and
Total Indebtedness), Preferred Stock of any member of the Allied Group to the
extent that (i) such member of the Allied Group has undertaken to redeem or
repurchase for cash or other assets (other than common stock or Preferred Stock
of Allied Waste which, in the case of such Preferred Stock, is Non-Cash-Pay at
such time) at a fixed or determinable date or dates prior to the date that is
six months after the Term Loan Maturity Date, whether by operation of a sinking
fund or otherwise or (ii) such Preferred Stock is required by its terms to be
repurchased or redeemed for cash or other assets (other than common stock or
Preferred Stock of Allied Waste which, in the case of such Preferred Stock, is
Non-Cash-Pay at such time) by such member of the Allied Group on any date or
dates prior to the date that is six months after the Term Loan Maturity Date at
the option of the holder thereof or upon the occurrence of a condition or event
not solely within the control of such member of the Allied Group (other than, in
each such case, upon the occurrence of a change in control of such member of the
Allied Group or any Affiliate thereof).

                  "Casualty Event" means, with respect to any property of any
Person, any loss of or damage to, or any condemnation or other taking of, such
property for which such Person or any of its subsidiaries receives insurance
proceeds, proceeds of a condemnation award or other compensation to the extent
that such proceeds or other compensation exceeds $10,000,000 with respect to any
individual event or $25,000,000 with respect to all such events, in each case in
any calendar year.

                  "Change in Control" means:

                  (a) any Person or group (other than Apollo or Blackstone)
         (within the meaning of Rule 13d-5 promulgated under the Securities
         Exchange Act of 1934 as in effect on the date hereof) shall have
         acquired, directly or indirectly, beneficial ownership of shares
         representing more than 35% of the aggregate ordinary voting power
         represented by the issued and outstanding capital stock of Allied
         Waste;

                  (b) a majority of the seats (other than vacant seats) on the
         board of directors of Allied Waste shall at any time be occupied by
         Persons who were neither nominated by the board of directors of Allied
         Waste nor appointed by directors so nominated;

                  (c) any change in control (or similar event, however
         denominated) with respect to Allied Waste or the Borrower shall

<PAGE>

                                                                              10

         occur under and as defined in any indenture or agreement in respect of
         Indebtedness in an aggregate principal amount in excess of $50,000,000;
         or

                  (d) Allied Waste shall cease to own and control, directly,
         beneficially and of record, 100% of the outstanding capital stock of
         the Borrower, free and clear of all Liens (other than Liens under the
         Non-Shared Collateral Pledge Agreement).

                  "Change in Law" means (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement or (c) compliance by any Lender or
Issuing Bank (or, for purposes of Section 2.15(b), by any lending office of such
Lender or by such Lender's or Issuing Bank's holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

                  "Class", when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are
Revolving Loans, Term Loans or Swingline Loans and, when used in reference to
any Commitment, refers to whether such Commitment is a Revolving Commitment,
Term Loan Commitment, Swingline Commitment or Tranche A Credit-Linked Deposit.

                  "CLO" means any entity (whether a corporation, partnership,
trust or otherwise) that is engaged in making, purchasing, holding or otherwise
investing in bank loans and similar extensions of credit in the ordinary course
of its business and is administered or managed by a Lender or an Affiliate of a
Lender.

                  "CNAI" means Citicorp North America, Inc.

                  "Code" means the Internal Revenue Code of 1986, as amended
from time to time.

                  "Collateral" means any and all "Collateral" as defined in the
Non-Shared Collateral Security Agreement or "Collateral" as defined in the
Shared Collateral Security Agreement.

                  "Collateral Agent" means JPMorgan Chase Bank, in its capacity
as collateral agent for the Lenders under the Loan Documents or in its capacity
as the Collateral Trustee.

                  "Collateral Trust Agreement" means the Amended and Restated
Collateral Trust Agreement, substantially in the form of Exhibit B, among BFI,
Subsidiary Loan Parties that are Subsidiaries of BFI, AWNA-BFI Subsidiaries and
the Collateral Trustee for the benefit of the Shared Collateral Secured Parties,
as amended, supplemented or otherwise modified from time to time in accordance
with the provisions of this Agreement.

                  "Collateral Trustee" means JPMorgan Chase Bank, in its
capacity as collateral trustee under the Collateral Trust Agreement,

<PAGE>

                                                                              11

the Shared Collateral Pledge Agreement and the Shared Collateral Security
Agreement.

                  "Commitment" means the Revolving Commitments, the Term Loan
Commitments, the Swingline Commitments and the Tranche A Credit-Linked Deposits,
or any combination thereof (as the context requires).

                  "Common Equity Offering" has the meaning assigned to such term
in the preamble of this Agreement.

                  "Confidential Information Memorandum" means the Confidential
Information Memorandum of Allied Waste and the Borrower dated February 2003,
provided to prospective Lenders in connection with the syndication of the
Commitments.

                  "Consolidated" refers to the consolidation of accounts in
accordance with GAAP.

                  "Consolidated EBITDA" means, for any period, Consolidated
Operating Income for such period, plus, without duplication and to the extent
deducted in determining such Consolidated Operating Income, the sum of:

                  (a) all amounts attributable to depreciation and amortization
         for such period; plus

                  (b) all Non-Cash Non-Recurring Charges during such period
         (including, without limitation, all accruals for closure and
         post-closure liabilities); plus

                  (c) all non-recurring management fees paid to Apollo and
         Blackstone during such period; plus

                  (d) all non-recurring cash charges incurred in connection with
         Permitted Acquisitions, Investments permitted under Section 6.05(a),
         (g) or (h), Indebtedness permitted under Section 6.01 and
         Securitizations permitted under Sections 6.05 and 6.06 during such
         period; plus

                  (e) all cash losses associated with asset sales during such
         period; plus

                  (f) all fees accrued to Issuing Banks in respect of Letters of
         Credit (whether or not actually paid during such period);

and minus, without duplication and to the extent included in determining
Consolidated Operating Income for such period:

                  (i) all Non-Cash Non-Recurring Gains during such period;

                  (ii) all cash disbursements made in such period attributable
         to Non-Cash Non-Recurring Charges added back in determining
         Consolidated EBITDA during a prior period, including, without
         limitation, cash disbursements made in respect of prior accruals for
         closure and post-closure liabilities (provided that, for purposes of
         this clause (ii), Allied Waste shall be required

<PAGE>

                                                                              12

         to monitor actual cash disbursements only for those non-cash charges
         that exceed $1,000,000 individually and $10,000,000 in the aggregate in
         any fiscal year); and

                  (iii) all cash gains associated with asset sales during such
         period,

all as determined on a Consolidated basis with respect to Allied Waste, the
Restricted Subsidiaries and the Securitization Vehicles.

                  For purposes of Section 6.13 and 6.14, if the Borrower or any
of its Restricted Subsidiaries acquires any Acquired Business during any Rolling
Period, Consolidated EBITDA for such Rolling Period will be determined on a pro
forma basis as if such Acquired Business were acquired on the first day thereof.
In determining the pro forma adjustments to Consolidated EBITDA to be made with
respect to any Acquired Business for periods prior to the acquisition date
thereof, actions taken by the Borrower and its Restricted Subsidiaries prior to
the first anniversary of the related acquisition date that result in cost
savings with respect to such Acquired Business will be deemed to have been taken
on the first day of the Rolling Period for which Consolidated EBITDA is being
determined (with the intent that such cost savings be effectively annualized by
extrapolation from the demonstrated cost savings since the related acquisition
date). Such pro forma adjustments will be subject to delivery to the
Administrative Agent of a certificate of a Financial Officer; such certificates
may be delivered with respect to any Acquired Business at any time after the
last day of the first fiscal quarter of the Borrower to end after the related
acquisition date and may be delivered quarterly (but only once per fiscal
quarter with respect to each Acquired Business). Each such certificate shall be
accompanied by supporting information and calculations demonstrating the actual
cost savings with respect to such Acquired Business and such other information
as any Lender, through the Administrative Agent, may reasonably request.

                  "Consolidated Interest Expense" means, for any period, without
duplication, consolidated interest expense of Allied Waste, its Restricted
Subsidiaries and the Securitization Vehicles for such period, plus the sum, for
Allied Waste, its Restricted Subsidiaries and the Securitization Vehicles
(determined on a Consolidated basis without duplication), of the following, in
each case to the extent not otherwise included in determining consolidated
interest expense:

                  (a) capitalized interest expense for such period of Allied
         Waste, its Restricted Subsidiaries and the Securitization Vehicles;
         plus

                  (b) cash interest accrued during such period in respect of
         Indebtedness attributable to any assets held for sale during such
         period (whether or not actually paid during such period); plus

                  (c) all fees accrued to Issuing Banks during such period in
         respect of Letters of Credit (whether or not actually paid during such
         period); plus

<PAGE>

                                                                              13

                  (d) all cash dividends paid or payable during such period in
         respect of Cash-Pay Preferred Stock of members of the Allied Group;
         plus

                  (e) all accrued settlement payments in respect of Hedging
         Agreements owing by Allied Waste, any Restricted Subsidiary or any
         Securitization Vehicle during such period;

and minus the sum of, for Allied Waste, its Restricted Subsidiaries and the
Securitization Vehicles (determined on a Consolidated basis without
duplication), in each case to the extent not otherwise deducted in determining
consolidated interest expense, (x) any amortization and other non-cash charges
or expenses incurred during such period to the extent included in determining
consolidated interest expense (other than amounts relating to the unwinding of
any Hedging Agreement), including, without limitation, amortization of deferred
debt origination and issuance costs and amortization of accumulated other
comprehensive income, (y) all amounts associated with the unwinding of any
Hedging Agreement to the extent such unwinding is the direct result of any
prepayment of the Term Loans occurring within 60 days of the date on which such
amount is incurred and (z) all accrued settlement payments in respect of Hedging
Agreements payable to Allied Waste, any Restricted Subsidiary or any
Securitization Vehicle during such period.

                  "Consolidated Operating Income" means, for any period, the sum
of (a) operating income (or loss) of Allied Waste, the Restricted Subsidiaries
and the Securitization Vehicles for such period and (b) to the extent not
included as operating income in clause (a) above, operating income (or loss)
attributable to assets held for sale during such period.

                  "Consolidated Total Assets" means, as at any date of
determination, the aggregate amount of assets reflected on the Consolidated
balance sheet of the Allied Group prepared in accordance with GAAP most recently
delivered to the Administrative Agent pursuant to Section 5.04 on or prior to
such date of determination.

                  "Control" means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or
otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

                  "Cure Amount" has the meaning assigned to such term in Section
7.02.

                  "Cure Right" has the meaning assigned to such term in Section
7.02.

                  "Default" means any event or condition which constitutes an
Event of Default or which upon notice, lapse of time or both would, unless cured
or waived, become an Event of Default.

                  "Designated Excess Cash Expenditures" means the use of the
Borrower's Portion of Excess Cash Flow to (i) make dividend payments pursuant to
Section 6.08(a)(viii); provided that any dividend paid by

<PAGE>

                                                                              14

the Borrower or any Restricted Subsidiary to Allied Waste in such Section shall
not be deemed to be the payment of a dividend for purposes of this definition,
(ii) repurchase outstanding Allied Waste common stock pursuant to Section
6.08(a)(ix) and (iii) make prepayments, repurchases or redemptions of
Refinanceable Indebtedness pursuant to Section 6.11(a)(z).

                  "Designation" shall have the meaning assigned to such term in
Section 6.16.

                  "dollars" or "$" refers to lawful money of the United States
of America.

                  "Domestic Subsidiary" means a Restricted Subsidiary organized
under the laws of the United States of America, any State thereof or the
District of Columbia.

                  "Effective Date" means July 30, 1999.

                  "8.875% Notes" means $600,000,000 aggregate principal amount
of senior notes of the Borrower due April 1, 2008 issued pursuant to the terms
of the 2001 Indenture.

                  "8.50% Notes" means $750,000,000 aggregate principal amount of
senior notes of the Borrower due December 1, 2008 issued pursuant to the terms
of the 2001 Indenture.

                  "Environment" means ambient air, surface water and groundwater
(including potable water, navigable water and wetlands), the land surface or
subsurface strata, any building, structure or fixture, or as otherwise defined
in any Environmental Law.

                  "Environmental Claim" means any written accusation,
allegation, notice of violation, claim, demand, order, directive, cost recovery
action or other cause of action by, or on behalf of, any Governmental Authority
or any Person, in any such case for or relating to damages, injunctive or
equitable relief, personal injury (including sickness, disease or death),
remedial action costs, tangible or intangible property damage, natural resource
damages, nuisance, pollution, investigation, closure and post-closure care of
any landfill, any adverse effect on the environment caused by any Hazardous
Material, or for fines, penalties or restrictions, resulting from or based upon
(a) the threat, the existence, or the continuation of the existence, of a
Release (including sudden or nonsudden, accidental or nonaccidental Releases),
(b) exposure to any Hazardous Material, (c) the presence, use, handling,
transportation, storage, treatment or disposal of any Hazardous Material or (d)
the violation or alleged violation of any Environmental Law or Environmental
Permit.

                  "Environmental Law" means any and all applicable present and
future treaties, laws, rules, regulations, codes, ordinances, orders, decrees,
judgments, injunctions, notices, legally binding agreements or published and
legally binding guidance documents issued, promulgated or entered into by any
Governmental Authority, relating in any way to the environment, preservation or
reclamation of natural resources, the treatment, storage, disposal, management,
Release or

<PAGE>

                                                                              15

threatened Release of any Hazardous Material or to health and safety matters,
including the Comprehensive Environmental Response, Compensation, and Liability
Act of 1980, as amended, 42 U.S.C. Sections 9601 et seq. (collectively
"CERCLA"), the Solid Waste Disposal Act, as amended by the Resource Conservation
and Recovery Action of 1976 and Hazardous and Solid Waste Amendments of 1984, 42
U.S.C. Sections 6901 et seq., the Federal Water Pollution Control Act, as
amended, 33 U.S.C. Sections 1251 et seq., the Clean Air Act of 1970, as amended,
42 U.S.C. Sections 7401 et seq., the Toxic Substances Control Act of 1976, 15
U.S.C. Sections 2601 et seq., the Occupational Safety and Health Act of 1970, as
amended, 29 U.S.C. Sections 651 et seq., the Emergency Planning and Community
Right-to-Know Act of 1986, 42 U.S.C. Sections 11001 et seq., the Safe Drinking
Water Act of 1974, as amended, 42 U.S.C. Sections 300(f) et seq., the Hazardous
Materials Transportation Act, 49 U.S.C. Sections 5101 et seq., and all
amendments or regulations promulgated under any of the foregoing.

                  "Environmental Liability" means any liability, contingent or
otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of Allied Waste, the Borrower or
any Subsidiary directly or indirectly resulting from or based upon (a) violation
of any Environmental Law, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) exposure to any
Hazardous Materials, (d) the Release or threatened Release of any Hazardous
Materials into the environment or (e) any contract, agreement or other
consensual arrangement pursuant to which liability is assumed or imposed with
respect to any of the foregoing.

                  "Environmental Permit" means any permit, approval,
authorization, certificate, license, variance, filing or permission required by
or from any Governmental Authority pursuant to any Environmental Law.

                  "Equity Interests" means, with respect to any Person, shares
of capital stock, partnership interests, membership interests in a limited
liability company, beneficial interests in a trust or other equity ownership
interests issued by such Person.

                  "Equity Offerings" has the meaning assigned to such term in
the preamble of this Agreement.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time.

                  "ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

                  "ERISA Event" means (a) any "reportable event", as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an "accumulated funding deficiency" (as
defined in Section 412 of the Code

<PAGE>

                                                                              16

or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to
Section 412(d) of the Code or Section 303(d) of ERISA of an application for a
waiver of the minimum funding standard with respect to any Plan; (d) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability under
Title IV of ERISA with respect to the termination of any Plan; (e) the receipt
by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of
any notice relating to an intention to terminate any Plan or Plans or to appoint
a trustee to administer any Plan; (f) the incurrence by the Borrower or any of
its ERISA Affiliates of any liability with respect to the withdrawal or partial
withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the
Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA; provided that no ERISA Event shall be
"outstanding" on any date on which such ERISA Event has been corrected.

                  "Eurodollar", when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate.

                  "Event of Default" has the meaning assigned to such term in

Article VII.

                  "Excess Cash Flow" means, with respect to Allied Waste, its
Restricted Subsidiaries and the Securitization Vehicles, on a Consolidated basis
for any Excess Cash Flow Calculation Period, the excess of (a) the sum (without
duplication) of:

                  (i) Consolidated EBITDA for such Excess Cash Flow Calculation
         Period;

                  (ii) all gains resulting in the receipt of cash by the Allied
         Group during such Excess Cash Flow Calculation Period to the extent not
         included in Consolidated EBITDA for such Excess Cash Flow Calculation
         Period; and

                  (iii) any decrease in Net Working Capital during such Excess
         Cash Flow Calculation Period;

over (b) the sum (without duplication) of

                  (i) taxes paid or payable in cash during such Excess Cash Flow
         Calculation Period;

                  (ii) Consolidated Interest Expense paid or payable in cash
         during such Excess Cash Flow Calculation Period;

                  (iii) Capital Expenditures made in cash and in accordance with
         Section 6.15 during such Excess Cash Flow Calculation Period (other
         than Required Applications);

<PAGE>

                                                                              17

                  (iv) expenditures made in cash for Permitted Acquisitions and
         for Investments permitted under Section 6.05(h) and (k) during such
         Excess Cash Flow Calculation Period other than Required Applications
         and only to the extent not made with the proceeds of any Indebtedness;

                  (v) scheduled repayments and mandatory prepayments of
         Indebtedness made in cash by Allied Waste and its Restricted
         Subsidiaries during such Excess Cash Flow Calculation Period other than
         Required Applications and only to the extent not made with the proceeds
         of any Indebtedness;

                  (vi) mandatory prepayments of the principal of Term Loans
         during such Excess Cash Flow Calculation Period, but only to the extent
         such prepayments do not occur in connection with a refinancing of all
         or any portion of such Loans or constitute Required Applications;

                  (vii) any increase in Net Working Capital during such Excess
         Cash Flow Calculation Period;

                  (viii) dividends or other distributions made by Allied Waste
         in cash during such Excess Cash Flow Calculation Period that are
         permitted by Section 6.08, other than any such dividends or
         distributions constituting Designated Excess Cash Expenditures; and

                  (ix) repayments and prepayments of Third Party Securities made
         by Allied Waste, its Restricted Subsidiaries and the Securitization
         Vehicles during such Excess Cash Flow Calculation Period (excluding any
         repayments made by Securitization Vehicles from the proceeds from the
         issuance of securities by Securitization Vehicles); provided, however,
         that all such repayments and prepayments (other than scheduled and
         mandatory principal repayments) made pursuant to this clause (b)(ix)
         may be made only (A) with the proceeds of collections of accounts
         receivable and (B) in connection with the dissolution or winding up of
         the Securitization Vehicle that issued such Third Party Securities.

                  "Excess Cash Flow Calculation Period" means, (i) initially,
the period from January 1, 2003 through March 31, 2004 and (ii) thereafter, the
twelve month period beginning on April 1 of any year and ending on March 31 of
the following year.

                  "Excess Tranche A Credit-Linked Deposits" means, at any time,
the excess, if any, of the Total Tranche A Credit-Linked Deposit over the
Tranche A LC Exposure at such time.

                  "Excluded Taxes" means, with respect to the Administrative
Agent, any Lender, any Issuing Bank or any other recipient of any payment to be
made by or on account of any obligation of the Borrower hereunder or, for
purposes of Section 2.17 only, by or on account of any obligation of the
Administrative Agent pursuant to Section 2.20(b), (a) any taxes (including
franchise taxes and taxes imposed on (or measured by) net income, receipts or
capital) imposed as a result of a

<PAGE>

                                                                              18

connection between such recipient and the jurisdiction imposing such tax,
including, without limitation, any connection arising from such recipient being
or having been a citizen, domiciliary or resident of such jurisdiction, being
organized in such jurisdiction, or having or having had a permanent
establishment or fixed place of business therein, but excluding any such
connection arising solely from the activities of such recipient pursuant to or
in respect of this Agreement or under any other Loan Document, including
executing, delivering or performing its obligations or receiving a payment
under, or enforcing, this Agreement or any other Loan Document, (b) in the case
of a Foreign Lender (other than an assignee pursuant to a request by the
Borrower under Section 2.19(b)), any tax that arises other than as a result of a
Change in Law subsequent, in the case of each Foreign Lender, to the date such
Foreign Lender becomes a party to this Agreement, except to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional
amounts from the Borrower or the Administrative Agent, as applicable, with
respect to any withholding tax pursuant to Section 2.17(a) or (b), and (c) any
tax that is attributable to a Lender's failure to comply with Section 2.17(e).

                  "Existing Letter of Credit" means each letter of credit issued
or deemed to have been issued under the Original Credit Agreement that is
outstanding on the Restatement Effective Date. The Existing Letters of Credit
are listed in Schedule 2.05.

                  "Federal Funds Effective Rate" means, for any day, the
weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for
such day for such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by it.

                  "Financial Officer" means the chief financial officer,
principal accounting officer, treasurer or controller of the Borrower.

                  "Financial Performance Covenants" means the covenants set
forth in Sections 6.13 and 6.14.

                  "Foreign Lender" means any Lender that is not a United States
person within the meaning of Section 7701(a)(30) of the Code.

                  "Foreign Subsidiary" means any Restricted Subsidiary that is
not a Domestic Subsidiary.

                  "GAAP" means generally accepted accounting principles in the
United States of America.

                  "Governmental Authority" means the government of the United
States of America, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority,

<PAGE>

                                                                              19

instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government.

                  "Guarantee" of or by any Person (the "guarantor") means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment of such
Indebtedness or other obligation, (b) to purchase or lease property, securities
or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity
capital or any other financial statement condition or liquidity of the primary
obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation or (d) as an account party in respect of any letter of credit or
letter of guaranty issued to support such Indebtedness or obligation; provided
that the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business.

                  "Guarantee Agreements" means the Parent Guarantee Agreement
and the Subsidiary Guarantee Agreement.

                  "Hazardous Materials" means all explosive or radioactive
substances or wastes; hazardous or toxic substances or wastes; pollutants; and
solid, liquid or gaseous wastes, including petroleum or petroleum distillates,
asbestos or asbestos-containing materials, polychlorinated biphenyls ("PCBs") or
PCB-containing materials or equipment, radon gas, infectious or medical wastes
and all substances, wastes, pollutants and materials of any nature regulated
pursuant to any Environmental Law.

                  "Hedging Agreement" means any Interest Rate Protection
Agreement or commodity price protection agreement or other commodity price
hedging arrangement.

                  "Incremental Commitment" has the meaning assigned to such term
in Section 2.21.

                  "Incremental Facility Amendment" has the meaning assigned to
such term in Section 2.21.

                  "Incremental Facility Notice" has the meaning set forth in
Section 2.21.

                  "Incremental Term Loans" has the meaning assigned to such term
in Section 2.21.

                  "Indebtedness" of any Person means, without duplication, (a)
all obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person under

<PAGE>

                                                                              20

conditional sale or other title retention agreements relating to property or
assets acquired by such Person, (d) all obligations of such Person in respect of
the deferred purchase price of property or services (excluding current accounts
payable and accrued obligations incurred in the ordinary course of business and
waste disposal based royalties), (e) all Indebtedness of others secured by (or
for which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed, (f)
all Guarantees by such Person of Indebtedness of others, (g) all Capital Lease
Obligations of such Person, (h) all obligations, contingent or otherwise, of
such Person as an account party in respect of letters of credit and letters of
guaranty, (i) all obligations, contingent or otherwise, of such Person in
respect of bankers' acceptances, (j) all net payment obligations of such Person
in respect of Hedging Agreements, and (k) all fixed obligations of such Person
to pay a determined amount of cash or other assets (other than common stock or
Preferred Stock of Allied Waste which, in the case of such Preferred Stock, is
Non-Cash-Pay at such time) with respect to Cash Pay Preferred Stock issued by
such Person. The Indebtedness of any Person shall include the Indebtedness of
any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such
Person's ownership interest in or other relationship with such entity, except to
the extent the terms of such Indebtedness provide that such Person is not liable
therefor.

                  "Indemnified Taxes" means Taxes other than Excluded Taxes and
Other Taxes.

                  "Indemnitee" has the meaning specified in Section 9.03(b).

                  "Indemnity, Subrogation and Contribution Agreement" means the
Amended and Restated Indemnity, Subrogation and Contribution Agreement,
substantially in the form of Exhibit C, among the Borrower, the Subsidiary Loan
Parties and the Administrative Agent, as amended, supplemented or otherwise
modified from time to time in accordance with the provisions of this Agreement.

                  "Initial Lenders" means JPMorgan Chase Bank and CNAI.

                  "Insurance Subsidiaries" means, collectively, (i) Reliant
Insurance Company and Indemnity Corporation, an insurance company organized
under the laws of the State of Vermont and, on the Restatement Effective Date, a
wholly owned Subsidiary of the Borrower; (ii) Global Indemnity Assurance
Company, an insurance company organized under the laws of the State of Vermont
and, on the Restatement Effective Date, a wholly owned Subsidiary of the
Borrower; and (iii) Saguaro National Insurance Company, an insurance company
organized under the laws of the State of Vermont and, on the Restatement
Effective Date, a wholly owned Subsidiary of the Borrower.

                  "Intellectual Property" means the "Intellectual Property" as
defined in the Non-Shared Collateral Security Agreement and the "Intellectual
Property" as defined in the Shared Collateral Security Agreement

<PAGE>

                                                                              21

                  "Intercompany Agreements" means the Management Agreements
between Allied Waste and the Borrower dated November 15, 1996.

                  "Interest Coverage Ratio" means, as at any date, the ratio of
(a) Consolidated EBITDA for the Rolling Period most recently ended on or prior
to such date to (b) Consolidated Interest Expense for such Rolling Period.

                  "Interest Election Request" means a request by the Borrower to
convert or continue a Revolving Borrowing or Term Borrowing in accordance with
Section 2.07.

                  "Interest Payment Date" means (a) with respect to any ABR Loan
(other than a Swingline Loan), the last day of each March, June, September and
December, (b) with respect to any Eurodollar Loan, the last day of the Interest
Period applicable to the Borrowing of which such Loan is a part and, in the case
of a Eurodollar Loan with an Interest Period of more than three months'
duration, each day prior to the last day of such Interest Period that occurs at
intervals of three months' duration after the first day of such Interest Period,
and (c) with respect to any Swingline Loan, the day that such Loan is required
to be repaid.

                  "Interest Period" means with respect to any Eurodollar
Borrowing, the period commencing on the date of such Borrowing and ending (i) on
the numerically corresponding day in the calendar month that is one, two, three
or six months (or, if available from each Lender, nine or twelve months)
thereafter or (ii) on the date that is 7 or 14 days thereafter (or, if such date
is not a Business Day, the next following Business Day), in each case as the
Borrower may elect; provided, that (1) no Interest Period referred to in clause
(ii) above may end after the date that is 90 days after the Restatement
Effective Date, (2) if any Interest Period referred to in clause (i) above would
end on a day other than a Business Day, such Interest Period shall be extended
to the next succeeding Business Day unless such next succeeding Business Day
would fall in the next calendar month, in which case such Interest Period shall
end on the next preceding Business Day and (3) any Interest Period referred to
in clause (i) above that commences on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of
the last calendar month of such Interest Period. For purposes hereof, the date
of a Borrowing initially shall be the date on which such Borrowing is made and
thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing.

                  "Interest Rate Protection Agreement" means any interest rate
protection agreement or foreign currency exchange agreement or other interest or
currency exchange rate hedging arrangement.

                  "Investment" by any Person in any other Person means (i) any
direct or indirect loan, advance or other extension of credit or capital
contribution to or for the account of such other Person (by means of any
transfer of cash or other property to any Person or any payment for property or
services for the account or use of any Person, or otherwise), (ii) any direct or
indirect purchase or other

<PAGE>

                                                                              22

acquisition of any Equity Interests, bond, note, debenture or other debt or
equity security or evidence of Indebtedness, or any other ownership interest
(including, any option, warrant or any other right to acquire any of the
foregoing), issued by such other Person, whether or not such acquisition is from
such or any other Person, (iii) any direct or indirect payment by such Person on
a Guarantee of any obligation of or for the account of such other Person or any
direct or indirect issuance by such Person of such a Guarantee (provided,
however, that for purposes of Section 6.05, payments under Guarantees not
exceeding the amount of the Investment attributable to the issuance of such
Guarantee will not be deemed to result in an increase in the amount of such
Investment) or (iv) any other investment of cash or other property by such
Person in or for the account of such other Person.

                  "Issuing Banks" means (a) JPMorgan Chase Bank and any other
Lender designated as an Issuing Bank in accordance with the provisions of
Section 2.05(b)(vii), in each case in its capacity as the issuer of Letters of
Credit hereunder, and its successors in such capacity as provided in Section
2.05(b)(vii) and (b) in respect of each Existing Letter of Credit, the issuer
thereof. An Issuing Bank may, in its discretion, arrange for one or more Letters
of Credit to be issued by Affiliates of the Issuing Bank, in which case the term
"Issuing Banks" shall include any such Affiliate with respect to Letters of
Credit issued by such Affiliate.

                  "Junior Indebtedness" means (a) Indebtedness of members of the
Allied Group in respect of the Senior Subordinated Notes and other Permitted
Subordinated Debt, and (b) Indebtedness of members of the Allied Group the
payment of which is contractually subordinated to the obligations of such
members as Loan Parties hereunder.

                  "LC Disbursement" means a Revolving LC Disbursement or a
Tranche A LC Disbursement.

                  "LC Exposure" means, at any time, the Revolving LC Exposure
and the Tranche A LC Exposure at such time.

                  "Lenders" means the Persons listed on Schedule 2.01 and any
other Person that shall have become a party hereto pursuant to an Assignment and
Acceptance, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Acceptance. Unless the context otherwise requires, the term
"Lenders" includes the Swingline Lenders and the Tranche A Lenders.

                  "Letter of Credit" means any Existing Letter of Credit, any
Revolving Letter of Credit or any Tranche A Letter of Credit.

                  "Leverage Ratio" means, as at any date, the ratio of (a) Total
Indebtedness as of such date to (b) Consolidated EBITDA for the Rolling Period
most recently ended on or prior to such date, all determined on a Consolidated
basis in accordance with GAAP.

                  "LIBO Rate" means, with respect to any Eurodollar Borrowing
for any Interest Period, the rate appearing on Page 3750 of the Telerate Service
(or on any successor or substitute page of such

<PAGE>

                                                                              23

Service, or any successor to or substitute for such Screen, providing rate
quotations comparable to those currently provided on such page of such Screen,
as determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the
London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period. In the event that
such rate is not available at such time for any reason, then the "LIBO Rate"
with respect to such Eurodollar Borrowing for such Interest Period shall be the
rate at which dollar deposits of $5,000,000 and for a maturity comparable to
such Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

                  "Lien" means, with respect to any asset, (a) any mortgage,
deed of trust, lien, pledge, hypothecation, encumbrance, charge or security
interest in, on or of such asset and (b) the interest of a vendor or a lessor
under any conditional sale agreement, capital lease or title retention agreement
(or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset.

                  "Loan Documents" means this Agreement, the Security Agreements
and the other Security Documents, as the same may be amended, restated,
supplemented, or otherwise modified from time to time.

                  "Loan Parties" means Allied Waste, the Borrower and the
Subsidiary Loan Parties.

                  "Loans" means the loans made by the Lenders to the Borrower
pursuant to this Agreement.

                  "Mandatory Convertible Offering" has the meaning assigned to
such term in the preamble of this Agreement.

                  "Mandatory Convertible Securities" means the Series C Senior
Mandatory Convertible Preferred Stock of Allied Waste issued in the Mandatory
Convertible Offering.

                  "March 2003 Securitization" has the meaning assigned to such
term in the preamble to this Agreement.

                  "Margin Stock" means "margin stock", as such term is defined
in Regulation U of the Board.

                  "Material Adverse Effect" means (a) a materially adverse
effect on the business, condition (financial or otherwise), operations,
performance or properties of Allied Waste and its Restricted Subsidiaries, taken
as a whole, (b) a material impairment of the ability of Allied Waste or the
Borrower to perform its obligations under the Loan Documents, (c) a material
impairment of the ability of the members of the Allied Group, taken as a whole,
to perform their collective obligations under the Loan Documents, or (d) a
material

<PAGE>

                                                                              24

impairment of the rights of or benefits available to the Administrative Agent
and the Lenders under the Loan Documents.

                  "Material Agreement" means an agreement that is material to
the conduct of the business of Allied Waste and its Restricted Subsidiaries,
taken as a whole.

                  "Material Indebtedness" means Indebtedness (other than the
Loans, the Letters of Credit and Indebtedness attributable to any Securitization
Vehicle), or obligations in respect of one or more Hedging Agreements, of any
one or more of Allied Waste and its Restricted Subsidiaries (other than
Indebtedness between Allied Waste and any Restricted Subsidiary or any
Restricted Subsidiary and any other Restricted Subsidiary) in an outstanding
aggregate principal amount exceeding $50,000,000. For purposes of determining
Material Indebtedness, the "principal amount" of the obligations in respect of
any Hedging Agreement at any time shall be the maximum aggregate amount (giving
effect to any netting agreements with the applicable counterparty) that Allied
Waste or such Restricted Subsidiary would be required to pay if such Hedging
Agreement were terminated at such time.

                  "Material Lease" means a lease of Allied Waste or a Restricted
Subsidiary with respect to real property (i) having an aggregate book value of
more than $50,000,000 or (ii) providing for annual rental payments in excess of
$10,000,000.

                  "Material Loan Party" means Allied Waste, the Borrower, BFI
and each other Loan Party that has (i) $50,000,000 in gross revenues in any
fiscal year or (ii) $50,000,000 in total assets.

                  "Moody's" means Moody's Investors Service, Inc.

                  "Multiemployer Plan" means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

                  "Net Available Proceeds" means:

                  (a) In the case of any Asset Sale, the aggregate amount of all
         cash payments as and when received by the members of the Allied Group
         directly or indirectly in connection with such Asset Sale; provided
         that:

                           (1) such Net Available Proceeds shall be net of (x)
                  the amount of any legal, title and recording tax expenses,
                  commissions and other reasonable fees and expenses (including
                  reasonable expenses of preparing the relevant property for
                  sale) paid by the members of the Allied Group in connection
                  with such Asset Sale, (y) any Federal, state and local income
                  or other taxes reasonably estimated in good faith to be
                  payable by members of the Allied Group with respect to such
                  Asset Sale and (z) the aggregate amount of reserves taken by
                  the members of the Allied Group in accordance with GAAP
                  against indemnification obligations incurred by them in
                  connection with such Asset Sale; provided that if any such
                  reserves are subsequently reversed by or released to members
                  of the

<PAGE>

                                                                              25

                  Allied Group, an amount equal to the amount of such reversal
                  or release shall be deemed to constitute Net Available
                  Proceeds;

                           (2) such Net Available Proceeds shall be net of any
                  repayments of Indebtedness and related obligations by members
                  of the Allied Group to the extent that (x) such Indebtedness
                  is secured by a Lien on the property that is the subject of
                  such Asset Sale and permitted by Section 6.02 and (y) the
                  transferee of (or holder of a Lien on) such property requires
                  that such Indebtedness be repaid as a condition to the
                  purchase of such property;

                           (3) in the case of an Asset Sale consisting of a
                  substantially contemporaneous exchange (including by way of a
                  substantially contemporaneous purchase and sale) of discrete
                  assets of members of the Allied Group for one or more other
                  assets used for similar purposes, Net Available Proceeds shall
                  be net of cash payments made by members of the Allied Group in
                  connection with such exchange; and

                           (4) in the case of a Securitization permitted by
                  Sections 6.05 and 6.06, such Net Available Proceeds shall be
                  net of, without duplication, (x) any amounts incurred in
                  connection with such Securitization by the Borrower or any of
                  its Subsidiaries set forth in clause (1) of this definition
                  and (y) any other fees, costs or expenses paid in cash by the
                  applicable Securitization Vehicle in connection with such
                  Securitization; provided, however, that any Sellers' Retained
                  Interests shall not be deemed to constitute a cost or expense
                  for purposes of calculating such Net Available Proceeds.

                  (b) In the case of any Casualty Event, the aggregate amount of
         proceeds of insurance, condemnation awards and other compensation
         received in cash by members of the Allied Group in respect of such
         Casualty Event net of (1) reasonable cash expenses incurred by them in
         connection therewith, (2) contractually required repayments of
         Indebtedness and related obligations to the extent secured by a Lien on
         the property suffering such Casualty Event and permitted by Section
         6.02 and (3) any income, transfer and other taxes reasonably estimated
         to be actually payable by members of the Allied Group in respect of
         such Casualty Event; provided, however, that, in the case of any
         Casualty Event, if the Borrower shall deliver a certificate of a
         Financial Officer to the Administrative Agent at the time of such
         Casualty Event setting forth the Borrower's intent to use all or a
         portion of the proceeds of such Casualty Event to replace or repair the
         assets that are the subject of such Casualty Event commencing within
         180 days of receipt of such proceeds and no Event of Default shall have
         occurred and shall be continuing at the time of such certificate or at
         the proposed time of the application of such proceeds, such proceeds
         shall not constitute Net Available Proceeds except to the extent not so
         used within 365 days after the commencement of such repair or
         replacement, at which time such proceeds shall be deemed Net Available
         Proceeds.

<PAGE>

                                                                              26

                  (c) In the case of any issuance of Indebtedness or any
         issuance of Permitted Cure Securities pursuant to Section 7.02, the
         aggregate amount of all cash received by members of the Allied Group in
         respect of such issuance, net of underwriting commissions, discounts or
         placement fees and other customary fees and expenses directly incurred
         in connection therewith.

                  "Net Working Capital" means, at any date, (a) the Consolidated
current assets of Allied Waste and its Restricted Subsidiaries as of such date
(excluding cash and Permitted Investments) minus (b) the Consolidated current
liabilities of Allied Waste and its Restricted Subsidiaries as of such date
(excluding current liabilities in respect of Indebtedness). Net Working Capital
at any date may be a positive or negative number. Net Working Capital increases
when it becomes more positive or less negative and decreases when it becomes
less positive or more negative.

                  "Non-Cash Non-Recurring Charges" means, for any period, all
non-cash non-recurring charges and all other non-cash charges (to the extent
such other non-cash charges are not incurred in the ordinary course of business
or do not constitute ordinary course operating expenses), incurred during such
period, including, without limitation, all non-cash charges in respect of
Permitted Acquisitions or Indebtedness permitted under Section 6.01, all
non-cash charges in respect of goodwill impairment, all accruals for closure and
post-closure liabilities and all non-cash losses in respect of asset sales
during such period, but excluding accruals for bad debt and accruals for
expenses incurred in the ordinary course of business during such period (it
being understood that charges shall be deemed non-cash charges until the period
in which cash disbursements attributable to such charges are made, at which
point such charges shall be deemed cash charges; provided that, for purposes of
this definition, Allied Waste shall be required to monitor actual cash
disbursements only for those non-cash charges that exceed $1,000,000
individually and $10,000,000 in the aggregate in any fiscal year).

                  "Non-Cash Non-Recurring Gains" means, for any period, all
non-cash non-recurring gains and all other non-cash gains (to the extent such
other non-cash gains are not realized in the ordinary course of business or do
not constitute ordinary course operating income), realized during such period,
including, without limitation, all non-cash gains in respect of Permitted
Acquisitions or Indebtedness permitted under Section 6.01 and all non-cash gains
in respect of asset sales during such period.

                  "Non-Cash-Pay" means:

                  (a) with respect to any Preferred Stock, that such Preferred
         Stock is not Cash-Pay Preferred Stock; and

                  (b) with respect to any Indebtedness or Equity Interest (other
         than Preferred Stock), that such Indebtedness or Equity Interest does
         not require any cash payments (whether in respect of principal,
         interest, dividends, redemption or repurchase) to be made thereon or in
         respect thereof on or prior to the Term Loan Maturity Date (other than
         upon the occurrence of a change of

<PAGE>

                                                                              27

          control of the issuer or any of its affiliates), whether by operation
          of a sinking fund or otherwise.

                  "Non-Shared Collateral Pledge Agreement" means the Amended and
Restated Non-Shared Collateral Pledge Agreement, substantially in the form of
Exhibit D, among Allied Waste, the Borrower, Subsidiary Loan Parties (other than
BFI and its Subsidiaries) and the Collateral Agent for the benefit of the
Secured Parties, as amended, supplemented or otherwise modified from time to
time in accordance with the provisions of this Agreement.

                  "Non-Shared Collateral Security Agreement" means the Amended
and Restated Non-Shared Collateral Security Agreement, substantially in the form
of Exhibit E, among the Borrower, Allied Waste, Subsidiary Loan Parties (other
than BFI and its Subsidiaries) and the Collateral Agent for the benefit of the
Secured Parties, as amended, supplemented or otherwise modified from time to
time in accordance with the provisions of this Agreement.

                  "Obligations" means (i) the obligations of the Borrower
hereunder to pay the principal of, premium, if any, and interest on the Loans
and LC Disbursements and all other monetary obligations, including fees, costs,
expenses, indemnities and penalties, whether primary, secondary, direct,
contingent, fixed or otherwise, of the Borrower to the Lenders in their
capacities as such under this Agreement or any other Loan Document, (ii) all
other "Obligations", as such term is defined in the Non-Shared Collateral
Security Agreement and (iii) all obligations of Loan Parties under the Parent
Guarantee Agreement, Subsidiary Guarantee Agreement, Security Agreements and
Pledge Agreements.

                  "Original Credit Agreement" means this Agreement, including
all amendments and waivers hereof effective prior to the Restatement Effective
Date, as in effect immediately prior to the Restatement Effective Date.

                  "Other Taxes" means any and all present or future recording,
stamp, documentary, excise, transfer, sales or property or similar taxes,
charges or similar levies arising from any payment made under any Loan Document
or from the execution, delivery or enforcement of, or otherwise with respect to,
any Loan Document.

                  "Parent Guarantee Agreement" means the Amended and Restated
Parent Guarantee Agreement, substantially in the form of Exhibit F, made by
Allied Waste in favor of the Administrative Agent for the benefit of the Secured
Parties, as amended, supplemented or otherwise modified from time to time in
accordance with the provisions of this Agreement.

                  "Participant" has the meaning specified in Section 9.04(c)(i).

                  "PBGC" means the Pension Benefit Guaranty Corporation referred
to and defined in ERISA and any successor entity performing similar functions.

<PAGE>

                                                                              28

                  "Perfection Certificates" means certificates in the form of
Exhibit G-1 and Exhibit G-2 or any other form approved by the Collateral Agent.

                  "Permitted Acquisition" means one or more acquisitions by the
Borrower or any other Loan Party of a business unit (with any associated assets)
located in the United States or capital stock or other ownership interests
(other than Margin Stock) of any other Person organized under the laws of the
United States, any state thereof or the District of Columbia; provided that:

                  (1) in the case of an acquisition of assets, such assets are
         to be used, and in the case of an acquisition of capital stock or other
         ownership interests, the Person so acquired is predominately engaged
         in, the same line of business as Allied Waste and its Restricted
         Subsidiaries or other business activities incidental or related
         thereto;

                  (2) the business acquired conducts its business exclusively in
         the United States;

                  (3) in connection with any such acquisition involving a merger
         of the Borrower or any Subsidiary Loan Party, (x) the Borrower or a
         wholly owned Subsidiary of the Borrower (provided that such wholly
         owned Subsidiary is then, or as a result of such acquisition becomes, a
         Subsidiary Loan Party concurrently with the consummation of any such
         acquisition) shall be the survivor (and if any such acquisition
         involves a merger of the Borrower and one of its Subsidiaries, the
         Borrower shall be the survivor) and (y) after such merger, Allied Waste
         shall own, directly or indirectly, beneficially and of record, Equity
         Interests in such Subsidiary Loan Party representing 100% of each of
         the aggregate ordinary voting power and the aggregate equity value
         represented by the issued and outstanding Equity Interests in such
         Subsidiary Loan party and the Borrower shall continue to be a wholly
         owned Subsidiary of Allied Waste;

                  (4) immediately prior to and after giving effect to such
         acquisition, no Default or Event of Default shall have occurred and be
         continuing;

                  (5) in the case of an acquisition of capital stock or other
         ownership interests of a Person, the Borrower or a Subsidiary Loan
         Party acquires 100% of the capital stock or other ownership interests
         of such Person and pledges such capital stock or other ownership
         interests pursuant to a Pledge Agreement; and

                  (6) with respect to such acquisition, the relevant Loan
         Parties (including any Specified Subsidiary acquired in connection with
         such acquisition) shall enter into Guarantee Agreements and Security
         Documents pursuant to Section 5.10 with respect to the Acquired
         Business (and any newly acquired Specified Subsidiary) and no
         agreement, instrument, law, regulation, order or decree applicable to
         such Specified Subsidiary or Acquired Business shall prohibit, restrain
         or limit its ability to enter into or perform any such Guarantee
         Agreement

<PAGE>

                                                                              29

         or Security Document or to pledge its assets and properties pursuant to
         any Security Document;

provided, however, that the prior written consent of the Required Lenders has
been obtained with respect to any such acquisition (whether effected in one
transaction or a series of related transactions) with respect to which the
aggregate Acquisition Consideration exceeds 40% of Consolidated EBITDA for the
Rolling Period ending on the last day of the most recent fiscal quarter with
respect to which financial statements have been delivered pursuant to Section
5.04.

                  "Permitted Cure Security" means a Non-Cash Pay equity security
of Allied Waste issued pursuant to Section 7.02.

                  "Permitted Encumbrances" means:

                  (a) Liens imposed by law for taxes that are not yet due or are
         being contested in compliance with Section 5.03;

                  (b) carriers', warehousemen's, landlord's, mechanics',
         materialmen's, repairmen's and other like Liens imposed by law, arising
         in the ordinary course of business and securing obligations that are
         not overdue by more than 90 days or are being contested in compliance
         with Section 5.03;

                  (c) pledges and deposits made in the ordinary course of
         business in compliance with workers' compensation, unemployment
         insurance and other social security laws or regulations;

                  (d) deposits to secure the performance of bids, trade
         contracts, leases, statutory obligations, surety and appeal bonds,
         performance bonds and other obligations of a like nature, in each case
         incurred in the ordinary course of business;

                  (e) deposits securing liabilities to insurance carriers under
         insurance or self-insurance arrangements;

                  (f) judgment liens in respect of judgments or awards in
         respect of which Allied Waste or its Subsidiaries are in good faith
         prosecuting an appeal or proceedings for review and in respect of which
         a stay of execution pending such appeal or proceedings for review shall
         have been obtained; provided that Allied Waste shall have set aside on
         its books adequate reserves in accordance with GAAP with respect
         thereto;

                  (g) easements, ground leases, zoning restrictions, building
         codes, rights-of-way or defects or irregularities in title and similar
         encumbrances on real property imposed by law or arising in the ordinary
         course of business that do not secure any monetary obligations and do
         not materially detract from the value of the affected property or
         interfere with the ordinary conduct of business of Allied Waste or any
         Restricted Subsidiary;

                  (h) statutory and common law landlord liens;

<PAGE>

                                                                              30

                  (i) leases or subleases to other Persons of properties or
         assets owned or leased by the Borrower or a Restricted Subsidiary; and

                  (j) Liens arising from the sale of overdue accounts receivable
         for purposes of collection in the ordinary course of business,

provided that the term "Permitted Encumbrances" shall not include any Lien
securing Indebtedness.

                  "Permitted Investments" means:

                  (a) direct obligations of, or obligations the principal of and
         interest on which are unconditionally guaranteed by, the United States
         of America (or by any agency thereof to the extent such obligations are
         backed by the full faith and credit of the United States of America),
         in each case maturing within one year from the date of acquisition
         thereof;

                  (b) Investments in commercial paper maturing within 360 days
         from the date of acquisition thereof and having, at such date of
         acquisition, the highest credit rating obtainable from S&P or from
         Moody's;

                  (c) Investments in certificates of deposit, banker's
         acceptances and time deposits maturing within one year from the date of
         acquisition thereof issued or guaranteed by or placed with, and money
         market deposit accounts issued or offered by, any domestic office of
         any commercial bank organized under the laws of the United States of
         America or any State thereof which has a combined capital and surplus
         and undivided profits of not less than $500,000,000;

                  (d) demand deposits made in the ordinary course of business
         and consistent with the Borrower's customary cash management policy in
         any domestic office of any commercial bank organized under the laws of
         the United States of America or any state thereof;

                  (e) insured deposits issued by commercial banks of the type
         described in clause (d) above;

                  (f) collateralized repurchase obligations with a term of not
         more than 90 days for, and secured by, underlying securities of the
         types described in clauses (a) through (c) above entered into with a
         bank meeting the qualifications described in clause (c) above;

                  (g) mutual funds whose investment guidelines restrict such
         funds' investments primarily to those satisfying the provisions of
         clause (a) through (c) above; and

                  (h) other investment instruments approved in writing by the
         Administrative Agent and offered by financial institutions which

<PAGE>

                                                                              31

         have a combined capital and surplus and undivided profits of not less
         than $500,000,000.

                  "Permitted Refinancing Transaction" means (i) the incurrence
of Refinancing Indebtedness by means of the extension or renewal of Refinanced
Debt not involving the issuance and sale of Refinancing Indebtedness or (ii) the
issuance and sale for cash of Refinancing Indebtedness the Net Available
Proceeds of which are intended by the Borrower to be applied to the repurchase,
redemption, repayment or, only with respect to not more than $25,000,000
aggregate principal amount of each class, series or issuance of Refinanced Debt
that is Acquired Indebtedness, defeasance of specified Refinanced Debt;
provided, however, that in the case of the issuance of Refinancing Indebtedness
referred to in clause (ii) of this definition, (x) a Financial Officer provides
a written notice to the Administrative Agent, not later than the second Business
Day following the date on which such Refinancing Indebtedness is issued,
specifying in reasonable detail the material economic terms of such Refinancing
Indebtedness and the date of issuance thereof, identifying the Indebtedness
intended to be repurchased, redeemed, repaid or defeased with such Net Available
Proceeds and the material economic terms on which such refinancing is to be
effected, and certifying the Borrower's intention to consummate such repurchase,
redemption, repayment or defeasance not more than 90 days after the date on
which such Refinancing Indebtedness is issued and (y) the full amount of the Net
Available Proceeds from the issuance of such Refinancing Indebtedness (other
than amounts therefor applied to the repayment, redemption, repurchase or
defeasance of the specified Refinanced Debt) is, not later than the date that is
90 days after the date of issuance of such Refinancing Indebtedness, applied on
such date to the prepayment of Term Loans pursuant to Section 2.11.

                  "Permitted Subordinated Debt" means Indebtedness of the
Borrower (and Guarantees of such Indebtedness by Restricted Subsidiaries of the
Borrower and by Allied Waste), the payment of which is subordinated to the
Borrower's, Allied Waste's or such Restricted Subsidiary's obligations in
respect of the Obligations, provided that such Permitted Subordinated Debt (a)
accrues interest at a rate determined in good faith by the board of directors of
the Borrower to be a market rate of interest for such Permitted Subordinated
Debt at the time of issuance thereof, (b) is created under agreements or
instruments that do not, as determined in good faith by the board of directors
of the Borrower, (i) impose covenants on the Borrower and the Borrower's
Subsidiaries, (ii) contain a definition of change of control or (iii) contain
events of default and other provisions, in each case materially more restrictive
than the covenants imposed in, the change of control definition used in and the
events of default and other provisions contained in this Agreement, (c) provides
that no scheduled principal payments are due on such Permitted Subordinated Debt
on any date on or prior to April 15, 2010, (d) is unsecured, (e) is not
guaranteed by Allied Waste or any Subsidiary unless (i) in the case of a
Subsidiary, such Subsidiary also has Guaranteed the Obligations and (ii) in the
case of Allied Waste or any such Restricted Subsidiary, such Guarantee of such
Permitted Subordinated Debt is subordinated to such Guarantee of the Obligations
on terms no less favorable to the Lenders than the subordination provisions of
the 10% Notes, (f) does not by its terms require the maintenance or achievement
of any financial performance standards more restrictive than those contained

<PAGE>

                                                                              32

herein, as determined in good faith by the board of directors of the Borrower,
other than as a condition to taking specified action and (g) the terms of
subordination of such Permitted Subordinated Debt are no less favorable to the
Lenders then the subordination provisions set forth in the 10% Note Documents
(as in effect on the Restatement Effective Date).

                  "Permitted Transferee" means, with respect to any Person: (a)
any Affiliate of such Person; (b) any investment manager, investment advisor, or
constituent general partner of such Person; or (c) any investment fund,
investment account, or investment entity that is organized by such Person or its
Affiliates and whose investment manager, investment advisor, or constituent
general partner is such Person or a Permitted Transferee of such Person.

                  "Person" means any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity.

                  "Plan" means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.

                  "Pledge Agreements" means the Non-Shared Collateral Pledge
Agreement and the Shared Collateral Pledge Agreement.

                  "Predecessor Loan Party" has the meaning assigned to such term
in Section 3.02.

                  "Predecessor Security Documents" means the "Security
Documents", as such term is defined herein immediately prior to the amendment
and restatement hereof.

                  "Preferred Stock" means, with respect to any corporation,
capital stock issued by such corporation that is entitled to a preference or
priority, in respect of dividends or distributions upon liquidation, over some
other class of capital stock issued by such corporation.

                  "Prepayment Event" means:

                  (a) any Asset Sale (including pursuant to a Sale and Leaseback
         Transaction) of any property or asset of Allied Waste or any Restricted
         Subsidiary, other than, (i) Asset Sales effected between Loan Parties
         permitted by Section 6.06(f), (ii) any Asset Sale made after the date
         of this Agreement resulting in Net Available Proceeds not exceeding
         $25,000,000, (iii) Securitizations permitted by Sections 6.05 and 6.06
         hereunder and (iv) sales of assets in non-core markets made after the
         Restatement Effective Date and on or prior to December 31, 2003
         resulting in cumulative Net Available Proceeds not in excess of
         $300,000,000. Notice of any such sale setting forth the closing date of
         such sale and the Net Available Proceeds received

<PAGE>

                                                                              33

         in connection therewith shall be provided by the Borrower to the
         Administrative Agent not later than 5 Business Days following the date
         on which such sale is consummated;

                  (b) any Casualty Event with respect to any property or asset
         of Allied Waste or any Restricted Subsidiary, to the extent that the
         Net Available Proceeds thereof are not applied to rebuilding, repairing
         or replacing such property or asset within 365 days of such Casualty
         Event, as provided in the definition of "Net Available Proceeds";

                  (c) the incurrence by Allied Waste, the Borrower or any
         Restricted Subsidiary of any Indebtedness for borrowed money (other
         than Refinancing Indebtedness permitted hereby to the extent the Net
         Available Proceeds thereof are used to repay, redeem, repurchase or,
         subject to the limitation set forth in the definition of Refinancing
         Indebtedness, defease Indebtedness other than the Obligations) pursuant
         to (A) Section 6.01(a)(xx), except to the extent the Net Available
         Proceeds thereof are used to make Permitted Acquisitions, Investments
         (other than Permitted Investments) permitted by Section 6.05 or Capital
         Expenditures permitted under Section 6.15 or (B) Section 6.01(a)(xiii),
         (xiv), (xv) or (xviii); or

                  (d) any Asset Sale consisting of a Securitization permitted by
         Sections 6.05 and 6.06 hereunder.

                  "Prime Rate" means the rate of interest per annum publicly
announced from time to time by JPMorgan Chase Bank as its prime rate in effect
at its principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.

                  "Properties" shall have the meaning assigned to such term in
Section 3.16(a).

                  "Qualifying Senior Secured Indebtedness" means Senior Secured
Indebtedness issued after the Restatement Effective Date which does not mature
and has no scheduled amortization of principal prior to April 15, 2010.

                  "Recapitalization" has the meaning assigned to such term in
the preamble of this Agreement.

                  "Refinanceable Indebtedness" means any long-term Indebtedness
for borrowed money of Allied Waste or any Restricted Subsidiary, including
Targeted Senior Secured Indebtedness, outstanding on the Restatement Effective
Date and having a scheduled maturity date on or prior to December 31, 2010.

                  "Refinanced Debt" has the meaning assigned to such term in the
definition of "Refinancing Indebtedness".

                  "Refinancing Indebtedness" means Indebtedness issued or
incurred (including by means of the extension or renewal of existing
Indebtedness) to extend, renew or refinance existing Indebtedness

<PAGE>

                                                                              34

("Refinanced Debt"); provided that (i) such extending, renewing or refinancing
Indebtedness is in an original aggregate principal amount not greater than the
aggregate principal amount of, and unpaid interest on, the Refinanced Debt plus
the amount of any premiums paid thereon and fees and expenses associated
therewith, (ii) such Indebtedness (x) does not mature or require scheduled
payments of principal prior to April 15, 2010 and (y) has a later maturity and a
longer weighted average life than the Refinanced Debt, (iii) such Indebtedness
bears a market interest rate (as determined in good faith by the board of
directors of the Borrower) as of the time of its issuance or incurrence, (iv) if
the Refinanced Debt or any Guarantees thereof are subordinated to the
Obligations, subordinated to the Obligations on terms no less favorable in any
significant respect to the holders of the Obligations than the subordination
terms of such Refinanced Debt or Guarantees thereof (and no Loan Party that has
not guaranteed such Refinanced Debt guarantees such Indebtedness), (v) such
Indebtedness contains covenants and events of default and is benefited by
Guarantees (if any) which, taken as a whole, are determined in good faith by the
board of directors of the Borrower to be no less favorable to the Lenders than
the covenants and events of default of or Guarantees (if any) in respect of such
Refinanced Debt, (vi) if such Refinanced Debt or any Guarantees thereof are
secured, such Indebtedness and any Guarantees thereof are either unsecured or
secured only by such assets as secured the Refinanced Debt and Guarantees
thereof and (vii) if such Refinanced Debt and any Guarantees thereof are
unsecured, such Indebtedness and Guarantees thereof are also unsecured.

                  "Register" has the meaning set forth in Section 9.04.

                  "Related Parties" means, with respect to any specified Person,
such Person's Affiliates and the respective directors, officers, employees,
agents, trustees and advisors of such Person and such Person's Affiliates.

                  "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping,
disposing, depositing, dispersing, emanating or migrating of any Hazardous
Material in, into, onto or through the Environment.

                  "Relevant Percentage" means (a) if the Leverage Ratio is
greater than or equal to 4.00 to 1.00, 100%; (b) if the Leverage Ratio is less
than 4.00 to 1.00 but greater than or equal to 3.50 to 1.00, 75%; (c) if the
Leverage Ratio is less than 3.50 to 1.00 but greater than or equal to 3.00 to
1.00, 50%; (d) if the Leverage Ratio is less than 3.00 to 1.00 but greater than
or equal to 2.50 to 1.00, 25%; and (e) if the Leverage Ratio is less than 2.50
to 1.00, 0.0%; provided that, (x) in the case of a Prepayment Event set forth in
clause (a) of the definition of "Prepayment Event", the Leverage Ratio shall be
determined as of the final day of the fiscal quarter most recently ended
immediately prior to the date of consummation of such Asset Sale; (y) in the
case of a Prepayment Event set forth in clause (b) of the definition of
"Prepayment Event", the Leverage Ratio shall be determined as of the date
immediately prior to the date of the receipt or deemed receipt of Net Available
Proceeds of such event; and (z) in the case of a Prepayment Event set forth in
clause (c) of the definition of "Prepayment Event", the Leverage Ratio shall be

<PAGE>

                                                                              35

determined on a pro forma basis as of the date of the relevant incurrence of
Indebtedness, after giving effect to such incurrence.

                  "Representative" means the trustee, agent or representative
(if any) for an issue of Senior Indebtedness.

                  "Required Application" means any application of Net Available
Proceeds to (i) the prepayment of Loans, (ii) the repayment, redemption or
repurchase of Indebtedness other than Loans permitted by Section 2.11 which, if
not effected, would require a prepayment of Loans under Section 2.11(c)(iv) or
(iii) the acquisition of real property, equipment or other tangible assets
(including pursuant to a Permitted Acquisition), in each case, which is required
(or in the case of clause (ii) or (iii) above, specifically permitted) by the
provisions of Section 2.11(c).

                  "Required Lenders" means, at any time, Lenders having
Revolving Exposures, Term Loans, Tranche A LC Exposure, unused Revolving
Commitments and Excess Tranche A Credit-Linked Deposits representing more than
50% of the sum of the total Revolving Exposures, outstanding Term Loans, Tranche
A LC Exposure, unused Revolving Commitments and Excess Tranche A Credit-Linked
Deposits at such time.

                  "Responsible Officer" means any executive officer of Allied
Waste or the Borrower (including, without limitation, any Financial Officer).

                  "Restatement Effective Date" means the date on which the
conditions specified in Section 4.01 are satisfied (or waived in accordance with
Section 9.02).

                  "Restricted Payment" means any dividend or other distribution
(whether in cash, securities or other property) with respect to any Equity
Interests in Allied Waste, the Borrower or any Subsidiary, or any payment
(whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancelation or termination of any Equity Interests in Allied Waste,
the Borrower or any Subsidiary or any option, warrant or other right to acquire
any such Equity Interests in Allied Waste, the Borrower or any Subsidiary.

                  "Restricted Subsidiary" means the Borrower, BFI and each other
Subsidiary of Allied Waste that has not been designated by the Borrower as an
Unrestricted Subsidiary pursuant to and in compliance with Section 6.16. On the
Restatement Effective Date, all Subsidiaries of Allied Waste are Restricted
Subsidiaries, other than those Subsidiaries indicated as Unrestricted
Subsidiaries on Schedule 3.08.

                  "Revolving Availability Period" means the period from and
including the Restatement Effective Date to but excluding the earlier of the
Revolving Maturity Date and the date of termination of the Revolving
Commitments.

                  "Revolving Commitment" means, with respect to each Revolving
Lender, the commitment of such Revolving Lender to make Revolving Loans and to
acquire participations in Revolving Letters of

<PAGE>

                                                                              36

Credit and Swingline Loans hereunder, expressed as an amount representing the
maximum aggregate amount of such Revolving Lender's Revolving Exposure
hereunder, as such commitment may be (a) reduced from time to time pursuant to
Section 2.08 and (b) reduced or increased from time to time pursuant to
assignments by or to such Revolving Lender pursuant to Section 9.04. The amount
of each Revolving Lender's Revolving Commitment on the Restatement Effective
Date is set forth on Schedule 2.01, or in the Assignment and Acceptance pursuant
to which such Revolving Lender shall have assumed its Revolving Commitment, as
applicable. The aggregate amount of the Revolving Lenders' Revolving Commitments
on the Restatement Effective Date is $1,500,000,000.

                  "Revolving Exposure" means, with respect to any Revolving
Lender at any time, the sum of the outstanding principal amount of such
Revolving Lender's Revolving Loans and its Revolving LC Exposure and Swingline
Exposure at such time.

                  "Revolving LC Disbursement" means a payment made by an Issuing
Bank pursuant to a Revolving Letter of Credit.

                  "Revolving LC Exposure" means, at any time, the sum of (a) the
aggregate undrawn amount of all outstanding Revolving Letters of Credit at such
time plus (b) the aggregate amount of all Revolving LC Disbursements that have
not yet been reimbursed by or on behalf of the Borrower at such time. The
Revolving LC Exposure of any Revolving Lender at any time shall be its
Applicable Percentage of the total Revolving LC Exposure at such time.

                  "Revolving Lender" means a Lender with a Revolving Commitment
or, if the Revolving Commitments have terminated or expired, a Lender with
Revolving Exposure.

                  "Revolving Letters of Credit" means, at any time, any Letter
of Credit issued pursuant to Section 2.05 of this Agreement, other than Tranche
A Letters of Credit.

                  "Revolving Loan" means a Loan made pursuant to clause (b) of
Section 2.01.

                  "Revolving Maturity Date" means January 15, 2008.

                  "Rolling Period" means any period of four consecutive fiscal
quarters of Allied Waste.

                  "Sale and Leaseback Transaction" means any arrangement whereby
Allied Waste, the Borrower or a Subsidiary shall sell or transfer any property,
real or personal, used or useful in its business, whether now owned or hereafter
acquired, and in a related transaction rent or lease such property or other
property from the buyer or transferee of the sold or transferred property that
it intends to use for substantially the same purpose or purposes as the property
sold or transferred.

                  "Secured Parties" has the meaning assigned to such term in the
Non-Shared Collateral Security Agreement.

<PAGE>

                                                                              37

                  "Securitization" means any transaction or series of
transactions entered into by the Borrower or any Restricted Subsidiary pursuant
to which the Borrower or such Restricted Subsidiary, as the case may be, sells,
conveys or otherwise transfers to a Securitization Vehicle Securitization Assets
of the Borrower or such Restricted Subsidiary (or grants a security interest in
such Securitization Assets transferred or purported to be transferred to such
Securitization Vehicle), and which Securitization Vehicle finances the
acquisition of such Securitization Assets (i) with proceeds from the issuance of
Third Party Securities, (ii) with Sellers' Retained Interests or (iii) with
proceeds from the sale or collection of Securitization Assets previously
purchased by such Securitization Vehicle.

                  "Securitization Assets" means any accounts receivable owed to
the Borrower or any Restricted Subsidiary (whether now existing or arising or
acquired in the future) arising in the ordinary course of business from the sale
of goods or services, all collateral securing such accounts receivable, all
contracts and contract rights and all guarantees or other obligations in respect
of such accounts receivable, all proceeds of such accounts receivable and other
assets (including contract rights) which are of the type customarily transferred
in connection with securitizations of accounts receivable and which are sold,
transferred or otherwise conveyed by the Borrower or a Restricted Subsidiary to
a Securitization Vehicle in connection with a Securitization permitted by
Sections 6.05 and 6.06.

                  "Securitization Vehicle" means a Person that is a direct
wholly owned Subsidiary of the Borrower or a Restricted Subsidiary formed for
the purpose of effecting one or more Securitizations to which the Borrower or
Restricted Subsidiaries transfer Securitization Assets and which, in connection
therewith, issues Third Party Securities; provided that (i) such Securitization
Vehicle shall engage in no business other than the purchase of Securitization
Assets pursuant to Securitizations permitted by Sections 6.05 and 6.06, the
issuance of Third Party Securities or other funding of such Securitizations and
any activities reasonably related thereto, (ii) such Securitization Vehicle is
an Unrestricted Subsidiary under this Agreement and an "Unrestricted Subsidiary"
under each of the AWNA Senior Note Indenture and the 2001 Indenture and (iii)
such Securitization Vehicle shall not be a Subsidiary of BFI or any Restricted
Subsidiary that is or becomes a party to the Shared Collateral Pledge Agreement
or the Shared Collateral Security Agreement.

                  "Security Agreements" means the Non-Shared Collateral Security
Agreement and the Shared Collateral Security Agreement, as amended, supplemented
or otherwise modified from time to time in accordance with the provisions of
this Agreement.

                  "Security Documents" means the Security Agreements, the Pledge
Agreements, the Subsidiary Guarantee Agreement, the Indemnity, Subrogation and
Contribution Agreement, the Collateral Trust Agreement and each other security
agreement or other instrument or document executed and delivered pursuant to
Section 5.10 to secure any of the Obligations, as amended, supplemented or
otherwise modified from time to time in accordance with the provisions of this
Agreement.

<PAGE>

                                                                              38

                  "Sellers' Retained Interests" means the debt or equity
interests held by the Borrower or any Restricted Subsidiary in a Securitization
Vehicle to which Securitization Assets have been transferred in a Securitization
permitted by Sections 6.05 and 6.06, including any such debt or equity received
in consideration for the Securitization Assets transferred.

                  "Senior Indebtedness" means the following obligations, whether
outstanding on the date of this Agreement or thereafter issued:

                  (i) all obligations consisting of the Bank Indebtedness;

                  (ii) all obligations consisting of the principal of and
         premium, if any, and accrued and unpaid interest (including interest
         accruing on or after the filing of any petition in bankruptcy or for
         reorganization relating to the Borrower regardless of whether
         post-filing interest is allowed in such proceeding) in respect of (A)
         indebtedness of the Borrower for money borrowed and (B) indebtedness
         evidenced by notes, debentures, bonds or other similar instruments for
         the payment of which the Borrower is responsible or liable;

                  (iii) all Capitalized Lease Obligations of the Borrower;

                  (iv) all obligations of the Borrower (A) for the reimbursement
         of any obligor on any letter of credit, banker's acceptance or similar
         credit transaction, (B) under interest rate swaps, caps, collars,
         options and similar arrangements and foreign currency hedges entered
         into in respect of any obligations described in clauses (i), (ii) and
         (iii) or (C) issued or assumed as the deferred purchase price of
         property and all conditional sale obligations of the Borrower and all
         obligations of the Borrower under any title retention agreement;

                  (v) all obligations of other persons of the type referred to
         in clauses (ii), (iii) or (iv) and all dividends of other persons for
         the payment of which, in either case, the Borrower is responsible or
         liable, directly or indirectly, as obligor, guarantor or otherwise,
         including guarantees of such obligations and dividends; and

                  (vi) all obligations of the Borrower consisting of
         modifications, renewals, extensions, replacements and refundings of any
         obligations described in clauses (i), (ii), (iii), (iv) or (v);

provided, however, that, notwithstanding anything to the contrary set forth
above, Senior Indebtedness shall not include (1) any obligation of the Borrower
to any Subsidiary, (2) any liability for Federal, state, local or other taxes
owed or owing by the Borrower, (3) any accounts payable or other liability to
trade creditors arising in the ordinary course of business (including guarantees
thereof or instruments evidencing such liabilities), (4) any Junior Indebtedness
or any indebtedness, guarantee or obligation of the Borrower that is subordinate
or junior to any other indebtedness, guarantee or

<PAGE>

                                                                              39

obligation of the Borrower or (5) any Indebtedness that is incurred in violation
of this Agreement.

                  "Senior Note Offering" has the meaning assigned to such term
in the preamble of this Agreement.

                  "Senior Secured Indebtedness" means Indebtedness of Allied
Waste or any Subsidiary secured by the Collateral under (and as defined in) the
Shared Collateral Security Agreement and the Shared Collateral Pledge Agreement
on a pari passu basis with the Obligations.

                  "7.88% Notes" means $875,000,000 aggregate principal amount of
senior notes of the Borrower due January 1, 2009 issued pursuant to the terms of
the AWNA Senior Note Indenture.

                  "Shared Collateral Pledge Agreement" means the Amended and
Restated Shared Collateral Pledge Agreement, substantially in the form of
Exhibit H, among BFI, Subsidiaries of BFI that are Subsidiary Loan Parties and
the Collateral Trustee for the benefit of the Shared Collateral Secured Parties,
as amended, supplemented or otherwise modified from time to time in accordance
with the provisions of this Agreement.

                  "Shared Collateral Secured Parties" means the "Secured
Parties" as defined in the Shared Collateral Security Agreement.

                  "Shared Collateral Security Agreement" means the Amended and
Restated Shared Collateral Security Agreement, substantially in the form of
Exhibit I, among BFI, Subsidiaries of BFI that are Subsidiary Loan Parties and
the Collateral Trustee for the benefit of the Shared Collateral Secured Parties,
as amended, supplemented or otherwise modified from time to time in accordance
with the provisions of this Agreement.

                  "S&P" means Standard & Poor's.

                  "Solvent" and "Solvency" mean, with respect to any Person on a
particular date, that on such date (a) the fair value of the property of such
Person is greater than the total amount of liabilities, including, without
limitation, contingent liabilities, of such Person, (b) the present fair salable
value of the assets of such Person on a going concern basis is not less than the
amount that will be required to pay the probable liability of such Person on its
Indebtedness as they become absolute and matured, (c) such Person does not
intend to, and does not believe that it will, incur Indebtedness or liabilities
beyond such Person's ability to pay as such Indebtedness and liabilities mature
and (d) such Person is not engaged in business or a transaction, and is not
about to engage in business or a transaction, for which such Person's property
would constitute an unreasonably small amount of capital. The portion of
contingent liabilities of any Person at any time that shall be included for
purposes of the above determinations shall be the amount of such contingent
liabilities that, in light of all facts and circumstances existing at such time,
could reasonably be expected to become actual matured liabilities of such
Person.

<PAGE>

                                                                              40

                  "Specified Subsidiary" means a Domestic Subsidiary of Allied
Waste or the Borrower (including Domestic Subsidiaries formed or acquired
pursuant to Permitted Acquisitions), but in any event excluding Insurance
Subsidiaries.

                  "Sponsor Preferred Stock" means shares of Series A Preferred
Stock of Allied Waste issued and sold to the Sponsors on the Effective Date and
any shares of the same class of such Preferred Stock issued in payment of
dividends on outstanding shares of such class of Preferred Stock.

                  "Sponsors" means Blackstone, Apollo and the other holders of
the Sponsor Preferred Stock on the Effective Date.

                  "Statutory Reserve Rate" means a fraction (expressed as a
decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve percentages
(including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board to which the Administrative Agent is
subject, for eurocurrency funding (currently referred to as "Eurocurrency
Liabilities" in Regulation D of the Board). Such reserve percentage shall
include those imposed pursuant to such Regulation D. Eurodollar Loans shall be
deemed to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to any Lender under such Regulation D or
any comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

                  "subsidiary" means, with respect to any Person (the "parent")
at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with
those of the parent in the parent's consolidated financial statements if such
financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership,
association or other entity of which securities or other ownership interests
representing more than 50% of the ordinary voting power or, in the case of a
partnership, more than 50% of the general partnership interests are, as of such
date, owned, controlled or held, by the parent or one or more subsidiaries of
the parent or by the parent and one or more subsidiaries of the parent.

                  "Subsidiary" means any subsidiary of Allied Waste.

                  "Subsidiary Guarantee Agreement" means the Amended and
Restated Subsidiary Guarantee Agreement, substantially in the form of Exhibit J,
made by the Subsidiary Loan Parties in favor of the Collateral Agent for the
benefit of the Secured Parties, as amended, supplemented or otherwise modified
from time to time in accordance with the provisions of this Agreement.

                  "Subsidiary Loan Party" means each Specified Subsidiary,
including BFI.

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                                                                              41

                  "Swingline Commitment" means, as to any Swingline Lender, the
commitment of such Swingline Lender to make Swingline Loans, as set forth on
Schedule 2.01. The aggregate amount of Swingline Commitments on the Restatement
Effective Date is $50,000,000.

                  "Swingline Exposure" means, at any time, the aggregate
principal amount of all Swingline Loans outstanding at such time. The Swingline
Exposure of any Lender at any time shall be its Applicable Percentage of the
total Swingline Exposure at such time.

                  "Swingline Lenders" means JPMorgan Chase Bank and any other
Lender designated as a Swingline Lender in accordance with Section 2.04(d), in
each case in its capacity as a lender of Swingline Loans hereunder.

                  "Swingline Loan" means a Loan made pursuant to Section 2.04.

                  "Taxes" means any and all present or future taxes, levies,
imposts, duties, deductions, charges or withholdings imposed by any Governmental
Authority.

                  "Targeted Senior Secured Indebtedness" means Senior Secured
Indebtedness outstanding on the Restatement Effective Date having a scheduled
maturity date prior to January 15, 2010.

                  "10% Note Documents" means the indenture dated as of July 30,
1999 among the Borrower, certain Subsidiaries and U.S. Bank Trust National
Association, as trustee, and all other instruments, agreements and other
documents evidencing or governing the 10% Notes or providing for any Guarantee
or other right in respect thereof.

                  "10% Notes" means $2,000,000,000 aggregate principal amount of
senior subordinated notes of the Borrower due August 1, 2009 issued pursuant to
the terms of the 10% Note Documents.

                  "Term Lender" means a Lender with a Term Loan Commitment or an
outstanding Term Loan.

                  "Term Loan" means a Loan made pursuant to clause (a) of
Section 2.01.

                  "Term Loan Commitment" means, with respect to each Term
Lender, the commitment of such Term Lender to make a Term Loan hereunder on the
Restatement Effective Date, expressed as an amount representing the maximum
principal amount of the Term Loan to be made by such Term Lender hereunder, as
such commitment may be (a) reduced from time to time pursuant to Section 2.08
and (b) reduced or increased from time to time pursuant to assignments by or to
such Term Lender pursuant to Section 9.04. The amount of each Term Lender's Term
Loan Commitment on the Restatement Effective Date is set forth on Schedule 2.01,
or in the Assignment and Acceptance pursuant to which such Term Lender shall
have assumed its Term Loan Commitment, as applicable. The aggregate amount of
the Term Lenders' Term Loan Commitments on the Restatement Effective Date is
$1,200,000,000.

<PAGE>

                                                                              42

                  "Term Loan Maturity Date" means January 15, 2010; provided,
however, that the Term Loan Maturity Date will automatically become (i) the date
that is six months prior to the stated maturity date of the 7.88% Notes, the 10%
Notes or the 8.50% Notes in the event that all the 7.88% Notes, all the 10%
Notes or all the 8.50% Notes, as the case may be, are not extended, renewed or
refinanced with Refinancing Indebtedness on or prior to the date which is six
months prior to the stated maturity date of such series of notes or (ii) January
15, 2008, in the event that all the 8.875% Notes are not extended, renewed or
refinanced with Refinancing Indebtedness on or prior to October 1, 2007 (it
being understood that the Term Loan Maturity Date will be the earliest date
required pursuant to clause (i) or (ii) in connection with any such failure to
extend, renew or refinance any notes specified in such clauses with Refinancing
Indebtedness prior to the dates specified in respect of such notes therein).

                  "Third Party Securities" means, with respect to any
Securitization, notes, bonds or other debt instruments, beneficial interests in
a trust, undivided ownership interests in receivables or other securities issued
for cash consideration by the relevant Securitization Vehicle to banks,
financing conduits, investors or other financing sources (other than Allied
Waste and the Subsidiaries) the proceeds of which are used to finance, in whole
or in part, the purchase by such Securitization Vehicle of Securitization Assets
in a Securitization. The amount of any Third Party Securities shall be deemed to
equal the aggregate principal, stated or invested amount of such Third Party
Securities which are outstanding at such time.

                  "Total Indebtedness" means, at any date, the sum (without
duplication) of:

                  (a) all Indebtedness (other than Indebtedness described in
         clauses (e), (f) and (j) of the definition of the term "Indebtedness")
         of members of the Allied Group which on such date would be required to
         be reflected as liabilities for borrowed money on a Consolidated
         balance sheet of Allied Waste and its Subsidiaries prepared as of such
         date in accordance with GAAP;

                  (b) the face amount of Cash-Pay Preferred Stock of members of
         the Allied Group outstanding on such date; and

                  (c) the aggregate principal, stated or invested amount of any
         Third Party Securities outstanding at such time;

provided, however, that, notwithstanding anything to the contrary set forth in
this Agreement, the face amount of Sponsor Preferred Stock outstanding on such
date shall at no time be included in the determination of, and shall not
constitute, Total Indebtedness.

                  "Total Tranche A Credit-Linked Deposit" means, at any time,
the sum of all Tranche A Credit-Linked Deposits at such time, as the same may be
(i) reduced from time to time pursuant to Section 2.05(b)(iii)(B) or Section
2.08 and (ii) increased from time to time pursuant to Section 2.05(b)(iii).

<PAGE>

                                                                              43

                  "Tranche A Availability Period" means the period from and
including the Restatement Effective Date to but excluding the earlier of the
Tranche A Maturity Date and the date on which all of the Tranche A Credit-Linked
Deposits are returned to the Tranche A Lenders.

                  "Tranche A Credit-Linked Deposit" means, as to each Tranche A
Lender, the cash deposit made by such Lender pursuant to Section 2.05(b), as
such deposit may be (a) reduced from time to time pursuant to Section
2.05(b)(iii)(B) or Section 2.08, (b) reduced or increased from time to time
pursuant to assignments by or to such Lender pursuant to Section 9.04 and (c)
increased from time to time pursuant to Section 2.05(b)(iii). The amount of each
Tranche A Lender's Tranche A Credit-Linked Deposit on the Restatement Effective
Date is set forth on Schedule 2.01, or in the Assignment and Acceptance pursuant
to which such Tranche A Lender shall have acquired its Tranche A Credit-Linked
Deposit, as applicable. The initial aggregate amount of the Tranche A
Credit-Linked Deposits is $200,000,000.

                  "Tranche A Credit-Linked Deposit Account" means the account
established by the Administrative Agent under its sole and exclusive control
maintained at the office of JPMorgan Chase Bank, 270 Park Avenue, New York, NY
10017, designated as the "Tranche A Credit-Linked Deposit Account" that shall be
used solely to hold the Tranche A Credit-Linked Deposits.

                  "Tranche A LC Disbursement" means any payment made by an
Issuing Bank pursuant to a Tranche A Letter of Credit.

                  "Tranche A LC Exposure" means, at any time, the sum of (a) the
aggregate undrawn amount of all outstanding Tranche A Letters of Credit at such
time plus (b) the aggregate amount of all Tranche A LC Disbursements that have
not yet been reimbursed by or on behalf of the Borrower at such time. The
Tranche A LC Exposure of any Tranche A Lender at any time shall be its
Applicable Percentage of the total Tranche A LC Exposure at such time.

                  "Tranche A Lender" means a Lender having a Tranche A
Credit-Linked Deposit.

                  "Tranche A Letters of Credit" means, at any time, Letters of
Credit in an amount equal to the lesser of (i) the Total Tranche A Credit-Linked
Deposit and (ii) the aggregate amount of outstanding Letters of Credit at such
time. Letters of Credit will from time to time be deemed to be Tranche A Letters
of Credit or Revolving Letters of Credit in accordance with the provisions of
Section 2.05(a).

                  "Tranche A Maturity Date" means the Term Loan Maturity Date.

                  "Transactions" means (i) the Recapitalization and the other
transactions described in the preamble to this Agreement, (ii) the execution,
delivery and performance by the Borrower of this Agreement, the borrowing of
Loans and the use of proceeds thereof and (iii) the execution, delivery and
performance by each other Loan Party of each Loan Document to which it is a
party.

<PAGE>

                                                                              44

                  "2001 Indenture" means (i) one or more supplemental
indentures, dated on or after January 25, 2001, to the AWNA Senior Note
Indenture and (ii) any other indenture governing Senior Indebtedness entered
into on or after January 25, 2001.

                  "2001 Senior Notes" means senior secured notes of AWNA or
Allied Waste issued on or after January 25, 2001 pursuant to the 2001 Indenture;
provided that any 2001 Senior Notes issued on or after the Restatement Effective
Date do not have a maturity date or any scheduled amortization until after April
15, 2010.

                  "2003 Senior Notes" has the meaning assigned to such term in
the preamble of this Agreement.

                  "Type", when used in reference to any Loan or Borrowing,
refers to whether the rate of interest on such Loan, or on the Loans comprising
such Borrowing, is determined by reference to the Adjusted LIBO Rate or the
Alternate Base Rate.

                  "Uniform Commercial Code" means the Uniform Commercial Code
(and any similar law) in effect in any applicable jurisdiction.

                  "Unrestricted Subsidiary" means any Subsidiary that has been
designated by the board of directors of the Borrower as an "Unrestricted
Subsidiary" pursuant to and in accordance with the provisions of Section 6.16.
Each of the Unrestricted Subsidiaries on the Restatement Effective Date is
identified on Schedule 3.08.

                  "Voting Stock" of any Person means capital stock of such
Person that ordinarily has voting power for the election of directors (or
persons performing similar functions) of such Person, whether at all times or
only so long as no senior class of securities has such voting power by reason of
any contingency.

                  "wholly owned subsidiary" of any Person shall mean a
subsidiary of such Person of which securities (except for directors' qualifying
shares) or other ownership interests representing 100% of the ordinary voting
power or 100% of the general partnership interests are, at the time any
determination is being made, owned, controlled or held by such Person or one or
more wholly owned subsidiaries of such Person or by such Person and one or more
wholly owned subsidiaries of such Person.

                  "Withdrawal Liability" means liability to a Multiemployer Plan
as a result of a complete or partial withdrawal from such Multiemployer Plan, as
such terms are defined in Part I of Subtitle E of Title IV of ERISA.

                  SECTION 1.02. Classification of Loans and Borrowings. For
  purposes of this Agreement, Loans may be classified and referred to by Class
  (e.g., a "Revolving Loan") or by Type (e.g., a "Eurodollar Loan") or by Class
  and Type (e.g., a "Eurodollar Revolving Loan"). Borrowings also may be
  classified and referred to by Class (e.g., a "Revolving Borrowing" or "Term
  Borrowing") or by Type (e.g., a "Eurodollar Borrowing") or by Class and Type
  (e.g., a "Eurodollar Revolving Borrowing").

<PAGE>

                                                                              45

                  SECTION 1.03. Terms Generally. The definitions of terms herein
  shall apply equally to the singular and plural forms of the terms defined.
  Whenever the context may require, any pronoun shall include the corresponding
  masculine, feminine and neuter forms. The words "include", "includes" and
  "including" shall be deemed to be followed by the phrase "without limitation".
  The word "will" shall be construed to have the same meaning and effect as the
  word "shall". Unless the context requires otherwise (a) any definition of or
  reference to any agreement, instrument or other document herein shall be
  construed as referring to such agreement, instrument or other document as from
  time to time amended, supplemented or otherwise modified (subject to any
  restrictions on such amendments, supplements or modifications set forth
  herein), (b) any reference herein to any Person shall be construed to include
  such Person's successors and assigns, (c) the words "herein", "hereof" and
  "hereunder", and words of similar import, shall be construed to refer to this
  Agreement in its entirety and not to any particular provision hereof, (d) all
  references herein to Articles, Sections, Exhibits and Schedules shall be
  construed to refer to Articles and Sections of, and Exhibits and Schedules to,
  this Agreement, (e) the words "asset" and "property" shall be construed to
  have the same meaning and effect and to refer to any and all tangible and
  intangible assets and properties, including cash, securities, accounts and
  contract rights, (f) all references to the "date hereof" or the "date of this
  Agreement" shall be deemed to refer to July 21, 1999 and (g) all references to
  "redemption" of Indebtedness shall be construed to include the giving of any
  redemption notice with respect to such Indebtedness by the issuer thereof and
  any deposit with the trustee for the holders of such Indebtedness, not earlier
  than the date of such notice, of funds necessary to effect such redemption, in
  each case pursuant to the indenture governing such Indebtedness.

                  SECTION 1.04. Accounting Terms; GAAP. Except as otherwise
  expressly provided herein, all terms of an accounting or financial nature
  shall be construed in accordance with GAAP, as in effect from time to time;
  provided that if the Borrower notifies the Administrative Agent that the
  Borrower requests an amendment to any provision hereof to eliminate the effect
  of any change occurring after the date hereof in GAAP or in the application
  thereof on the operation of such provision (or if the Administrative Agent
  notifies the Borrower that the Required Lenders request an amendment to any
  provision hereof for such purpose), regardless of whether any such notice is
  given before or after such change in GAAP or in the application thereof, then
  such provision shall be interpreted on the basis of GAAP as in effect and
  applied immediately before such change shall have become effective until such
  notice shall have been withdrawn or such provision amended in accordance
  herewith.

                                   ARTICLE II

                                   The Credits

                  SECTION 2.01. Commitments. Subject to the terms and conditions
  set forth herein, (a) each Term Lender agrees to make a Term Loan to the
  Borrower on the Restatement Effective Date in a principal amount not exceeding
  its Term Loan Commitment and (b) each Revolving Lender agrees to make
  Revolving Loans to the Borrower from

<PAGE>

                                                                              46

  time to time during the Revolving Availability Period in an aggregate
  principal amount that will not result in such Lender's Revolving Exposure
  exceeding such Lender's Revolving Commitment. Within the foregoing limits and
  subject to the terms and conditions set forth herein, the Borrower may borrow,
  prepay and reborrow Revolving Loans. Amounts repaid in respect of Term Loans
  may not be reborrowed.

                  SECTION 2.02. Loans and Borrowings. (a) Each Loan (other than
  a Swingline Loan) shall be made as part of a Borrowing consisting of Loans of
  the same Class and Type made by the Lenders ratably in accordance with their
  respective Commitments of the applicable Class. The failure of any Lender to
  make any Loan required to be made by it shall not relieve any other Lender of
  its obligations hereunder; provided that the Commitments of the Lenders are
  several and no Lender shall be responsible for any other Lender's failure to
  make Loans as required.

                  (b) Subject to Section 2.14, each Revolving Borrowing and Term
Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the
Borrower may request in accordance herewith. Each Swingline Loan shall be an ABR
Loan. Each Lender at its option may make any Eurodollar Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall comply with Section 2.17 and
shall not affect the obligation of the Borrower to repay such Loan in accordance
with the terms of this Agreement.

                  (c) At the commencement of each Interest Period for any new
Eurodollar Borrowing (but not any renewal or extension of any outstanding
Eurodollar Borrowing), such Borrowing shall be in an aggregate amount that is an
integral multiple of $1,000,000 and not less than $10,000,000; provided that a
Eurodollar Borrowing may be in an aggregate amount that is equal to (i) the
entire unused balance of the total Revolving Commitments or (ii) the amount
required to reimburse any LC Disbursement as contemplated by Section 2.05(e), in
each case in the event that such entire unused balance or such required
reimbursement amount is less than $10,000,000. At the time that each ABR
Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that
is an integral multiple of $1,000,000 and not less than $10,000,000; provided
that an ABR Revolving Borrowing may be in an aggregate amount that is equal to
the entire unused balance of the total Revolving Commitments or that is required
to finance the reimbursement of an LC Disbursement as contemplated by Section
2.05(e). Each Swingline Loan shall be in an amount that is an integral multiple
of $100,000 and not less than $1,000,000. Borrowings of more than one Type and
Class may be outstanding at the same time; provided that there shall not at any
time be more than a total of 35 Eurodollar Borrowings outstanding.

                  (d) Notwithstanding any other provision of this Agreement, the
Borrower shall not be entitled to request, or to elect to convert or continue,
any Borrowing if the Interest Period requested with respect thereto would end
after the Revolving Maturity Date or Term Loan Maturity Date, as applicable.

                  SECTION 2.03. Requests for Borrowings. To request a Revolving
  Borrowing or Term Borrowing, the Borrower shall notify the

<PAGE>

                                                                              47

  Administrative Agent of such request by telephone (a) in the case of a
  Eurodollar Borrowing, not later than 1:00 p.m., New York City time, three
  Business Days before the date of the proposed Borrowing or (b) in the case of
  an ABR Borrowing, not later than 1:00 p.m., New York City time, on the day of
  the proposed Borrowing. Each such telephonic Borrowing Request shall be
  irrevocable and shall be confirmed promptly by hand delivery or telecopy to
  the Administrative Agent of a written Borrowing Request in a form approved by
  the Administrative Agent and signed by the Borrower. Each such telephonic and
  written Borrowing Request shall specify the following information in
  compliance with Section 2.02:

                  (i) whether the requested Borrowing is to be a Revolving
         Borrowing or Term Borrowing;

                  (ii) the aggregate amount of such Borrowing;

                  (iii) the date of such Borrowing, which shall be a Business
         Day;

                  (iv) whether such Borrowing is to be an ABR Borrowing or a
         Eurodollar Borrowing;

                  (v) in the case of a Eurodollar Borrowing, the initial
         Interest Period to be applicable thereto, which shall be a period
         contemplated by the definition of the term "Interest Period"; and

                  (vi) the location and number of the Borrower's account to
         which funds are to be disbursed, which shall comply with the
         requirements of Section 2.06.

If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Eurodollar Revolving Borrowing, then the Borrower shall
be deemed to have selected an Interest Period of one month's duration. Promptly
following receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender's Loan to be made as part of the requested Borrowing.

                  SECTION 2.04. Swingline Loans. (a) Subject to the terms and
  conditions set forth herein, each Swingline Lender severally agrees to make
  Swingline Loans to the Borrower from time to time during the Revolving
  Availability Period in an aggregate principal amount at any time outstanding
  that will not result in (i) the aggregate principal amount of such Swingline
  Lender's outstanding Swingline Loans exceeding its Swingline Commitment, (ii)
  the aggregate principal amount of outstanding Swingline Loans exceeding
  $50,000,000 or (iii) the sum of the total Revolving Exposures exceeding the
  total Revolving Commitments; provided that such Swingline Lender may, but
  shall not be required to, make a Swingline Loan to refinance an outstanding
  Swingline Loan. Within the foregoing limits and subject to the terms and
  conditions set forth herein, the Borrower may borrow, prepay and reborrow
  Swingline Loans.

<PAGE>

                                                                              48

                  (b) To request a Swingline Loan, the Borrower shall notify the
Administrative Agent of such request by telephone (confirmed by telecopy), not
later than 1:00 p.m., New York City time, on the day of a proposed Swingline
Loan. Each such notice shall be irrevocable and shall specify the requested date
(which shall be a Business Day) and amount of the requested Swingline Loan and
the location and number of the Borrower's account to which funds are to be
disbursed, which account shall comply with the requirements of Section 2.06. The
Administrative Agent will promptly advise the Swingline Lenders of any such
notice received from the Borrower. Each Swingline Lender shall make each
Swingline Loan available to the Borrower (pro rata, in accordance with the
Swingline Commitments of the Swingline Lenders) by means of a credit or wire
transfer to the account specified in writing by the Borrower in such notice (or,
in the case of a Swingline Loan made to finance the reimbursement of an LC
Disbursement as provided in Section 2.05(e), by remittance to the applicable
Issuing Bank) by 3:00 p.m., New York City time, on the requested date of such
Swingline Loan.

                  (c) Each Swingline Lender may by written notice given to the
Administrative Agent not later than 12:00 noon, New York City time, on any
Business Day require the Revolving Lenders to acquire participations on such
Business Day in all or a portion of the outstanding Swingline Loans made by such
Swingline Lender. Such notice shall specify the aggregate amount of Swingline
Loans in which Revolving Lenders will participate. Promptly upon receipt of such
notice, the Administrative Agent will give notice thereof to each Revolving
Lender, specifying in such notice such Lender's Applicable Percentage of such
Swingline Loan or Swingline Loans. Each Revolving Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above, to pay to the
Administrative Agent, for the account of the applicable Swingline Lender, such
Lender's Applicable Percentage of such Swingline Loan or Swingline Loans. Each
Revolving Lender acknowledges and agrees that its obligation to acquire
participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever,
including the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever. Each Revolving
Lender shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.06 with
respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis
mutandis, to the payment obligations of the Revolving Lenders), and the
Administrative Agent shall promptly pay to the applicable Swingline Lender the
amounts so received by it from the Revolving Lenders. The Administrative Agent
shall promptly notify the Borrower in writing of any participations in any
Swingline Loan acquired pursuant to this paragraph, and thereafter payments in
respect of such Swingline Loan shall be made to the Administrative Agent and not
to the applicable Swingline Lender. Any amounts received by any Swingline Lender
from the Borrower (or other party on behalf of the Borrower) in respect of a
Swingline Loan after receipt by such Swingline Lender of the proceeds of a sale
of participations therein shall be promptly remitted to the Administrative
Agent; any such amounts received by the Administrative Agent shall be promptly
remitted by the Administrative Agent to the Revolving Lenders that shall have
made their payments pursuant to this paragraph and to such Swingline Lender, as
their interests may appear. The purchase of participations in a

<PAGE>

                                                                              49

Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any
default in the payment thereof.

                  (d) Addition of a Swingline Lender. A Revolving Lender may
become an additional Swingline Lender hereunder upon the delivery of (i) a
written agreement among the Borrower, the Administrative Agent, each Swingline
Lender and such Revolving Lender and (ii) an Assignment and Acceptance Agreement
(or Agreements, if more than one Swingline Lender) pursuant to Section 9.04(b)
with respect to an amount of Swingline Commitments and Swingline Loans to be
agreed upon between such Revolving Lender and each assigning Swingline Lender.
The Administrative Agent shall notify the Revolving Lenders of any such
additional Swingline Lender.

                  SECTION 2.05. Letters of Credit. (a) General. On the
  Restatement Effective Date, the Existing Letters of Credit will automatically,
  without any action on the part of any Person, be deemed to be Letters of
  Credit issued hereunder for the account of the Borrower for all purposes of
  this Agreement and the other Loan Documents. In addition, subject to the terms
  and conditions set forth herein (including, with respect to issuances of
  Tranche A Letters of Credit, Section 2.20), the Borrower may request the
  issuance of (and the applicable Issuing Bank, as specified by the Borrower,
  shall issue) (i) Tranche A Letters of Credit, at any time and from time to
  time during the Tranche A Availability Period, and (ii) Revolving Letters of
  Credit, at any time and from time to time during the Revolving Availability
  Period, in each case for the Borrower's own account or for the account of any
  other member of the Allied Group (provided that the Borrower will be a
  co-applicant and a co-obligor with respect to each Letter of Credit issued for
  the account of any other member of the Allied Group), in a form reasonably
  acceptable to the Administrative Agent and the relevant Issuing Bank. For
  purposes hereof, (i) Letters of Credit shall at all times and from time to
  time be deemed to be Tranche A Letters of Credit in the amount specified in
  the definition of Tranche A Letters of Credit and be deemed to be Revolving
  Letters of Credit only to the extent, and in an amount by which, the aggregate
  amount of outstanding Letters of Credit exceeds such amount specified in the
  definition of Tranche A Letters of Credit, (ii) drawings under any Letter of
  Credit shall be deemed to have been made under Revolving Letters of Credit for
  so long as, and to the extent that, there are any undrawn Revolving Letters of
  Credit outstanding (and thereafter shall be deemed to have been made under
  Tranche A Letters of Credit) and (iii) any Letter of Credit that expires or
  terminates will be deemed to be a Revolving Letter of Credit, for so long as,
  and to the extent that, there are outstanding Revolving Letters of Credit
  immediately prior to such expiration or termination; provided, however, that,
  at any time during which an Event of Default shall have occurred and be
  continuing, (A) Letters of Credit shall be deemed to be Revolving Letters of
  Credit and Tranche A Letters of Credit, (B) drawings under Letters of Credit
  shall be deemed to have been made under Revolving Letters of Credit and
  Tranche A Letters of Credit and (C) any Letter of Credit that expires or
  terminates shall be deemed to be a Revolving Letter of Credit and a Tranche A
  Letter of Credit, in each case pro rata based upon (1) the total Revolving
  Commitments at such time and (2) the sum of the Total Tranche A Credit-Linked
  Deposit and the amount of the Total Tranche A Credit-Linked Deposit that shall
  have been applied to reimburse

<PAGE>

                                                                              50

  outstanding Tranche A LC Disbursements at such time. To the extent necessary
  to implement the foregoing, the identification of a Letter of Credit as a
  Revolving Letter of Credit or a Tranche A Letter of Credit may change from
  time to time and a portion of a Letter of Credit may be deemed to be a Tranche
  A Letter of Credit and the remainder be deemed to be a Revolving Letter of
  Credit. Notwithstanding the foregoing, the entire face amount of any Letter of
  Credit with an expiration date after the Revolving Maturity Date shall at all
  times be deemed to be a Tranche A Letter of Credit, subject to the limitations
  set forth in clause (i) of the third sentence of this paragraph (a). In the
  event of any inconsistency between the terms and conditions of this Agreement
  and the terms and conditions of any form of letter of credit application or
  other agreement submitted by the Borrower to, or entered into by the Borrower
  with, an Issuing Bank relating to any Letter of Credit, the terms and
  conditions of this Agreement shall control.

                  (b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit), the Borrower shall
hand deliver or telecopy (or transmit by electronic communication, if
arrangements for doing so have been approved by the applicable Issuing Bank) to
the relevant Issuing Bank and the Administrative Agent (reasonably in advance of
the requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance,
amendment, renewal or extension (which shall be a Business Day), the date on
which such Letter of Credit is to expire (which shall comply with subparagraph
(i) of this Section), the amount of such Letter of Credit, the name and address
of the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit. If requested by an
Issuing Bank, the Borrower (and any other member of the Allied Group for whose
account such Letter of Credit is issued) shall also submit a letter of credit
application on such Issuing Bank's standard form in connection with any request
for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or
extended only if (and upon issuance, amendment, renewal or extension of each
Letter of Credit the Borrower shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or extension (x) the LC
Exposure shall not exceed the sum of the total Revolving Commitments and the
Total Tranche A Credit-Linked Deposit, (y) the total Revolving Exposures shall
not exceed the total Revolving Commitments and (z) the Tranche A LC Exposure
shall not exceed the Total Tranche A Credit-Linked Deposit.

                  (i) Expiration Date. Each Letter of Credit shall expire at or
         prior to the close of business on the earlier of (i) the date one year
         after the date of the issuance of such Letter of Credit (other than any
         Existing Letter of Credit having a later expiration date), or, in the
         case of any renewal or extension thereof, one year after such renewal
         or extension and (ii) (A) with respect to any Revolving Letter of
         Credit, the date that is five Business Days prior to the Revolving
         Maturity Date and (B) with respect to any Tranche A Letter of Credit,
         the date that is five Business Days prior to the Tranche A Maturity
         Date.

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                                                                              51

                  (ii) Participations. (A) By the issuance of a Revolving Letter
         of Credit (or an amendment to a Revolving Letter of Credit increasing
         the amount thereof) and without any further action on the part of the
         applicable Issuing Bank or the Lenders, such Issuing Bank hereby grants
         to each Revolving Lender, and each Revolving Lender hereby acquires
         from the applicable Issuing Bank, a participation in such Letter of
         Credit (including each Existing Letter of Credit) equal to such
         Lender's Applicable Percentage of the aggregate amount available to be
         drawn under such Letter of Credit. In consideration and in furtherance
         of the foregoing, each Revolving Lender hereby absolutely and
         unconditionally agrees to pay to the Administrative Agent, for the
         account of the applicable Issuing Bank, such Lender's Applicable
         Percentage of each Revolving LC Disbursement made by such Issuing Bank
         and not reimbursed by the Borrower or any other account party on the
         date due as provided in paragraph (e) of this Section, or of any
         reimbursement payment required to be refunded to the Borrower or any
         other account party for any reason. Each Lender acknowledges and agrees
         that its obligation to acquire participations pursuant to this
         paragraph in respect of Revolving Letters of Credit is absolute and
         unconditional and shall not be affected by any circumstance whatsoever,
         including any amendment, renewal or extension of any Revolving Letter
         of Credit or the occurrence and continuance of a Default or reduction
         or termination of the Commitments, and that each such payment shall be
         made without any offset, abatement, withholding or reduction
         whatsoever.

                  (B) On the Restatement Effective Date, without any further
         action on the part of any Issuing Bank or the Tranche A Lenders, each
         Issuing Bank hereby grants to each Tranche A Lender, and each Tranche A
         Lender hereby acquires from such Issuing Bank, a participation in each
         Tranche A Letter of Credit equal to such Tranche A Lender's Applicable
         Percentage of the aggregate amount available to be drawn under such
         Tranche A Letter of Credit. The aggregate purchase price for the
         participations of each Tranche A Lender in Tranche A Letters of Credit
         shall equal the amount of the Tranche A Credit-Linked Deposit of such
         Tranche A Lender. Each Tranche A Lender shall pay to the Administrative
         Agent its Tranche A Credit-Linked Deposit in full on the Restatement
         Effective Date. Each Tranche A Lender hereby absolutely and
         unconditionally agrees that if an Issuing Bank makes a Tranche A LC
         Disbursement which is not reimbursed by the Borrower on the date due as
         provided in paragraph (b)(iii) of this Section, or is required to
         refund any reimbursement payment in respect of a Tranche A LC
         Disbursement to the Borrower for any reason, the Administrative Agent
         shall reimburse the applicable Issuing Bank for the amount of such
         Tranche A LC Disbursement from such Tranche A Lender's Tranche A
         Credit-Linked Deposit on deposit in the Tranche A Credit-Linked Deposit
         Account. In the event the Tranche A Credit-Linked Deposit Account is
         charged by the Administrative Agent to reimburse the applicable Issuing
         Bank for an unreimbursed Tranche A LC Disbursement, the Borrower shall
         have the right, at any time prior to the Tranche A Maturity Date, to
         pay over to the Administrative Agent in reimbursement thereof an amount
         equal to the amount so charged, and such payment shall be deposited by
         the Administrative Agent in the Tranche A

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                                                                              52

         Credit-Linked Deposit Account. Each Tranche A Lender acknowledges and
         agrees that its obligation to acquire and fund participations in
         respect of Tranche A Letters of Credit pursuant to this subparagraph
         (B) is unconditional and irrevocable and shall not be affected by any
         circumstance whatsoever, including any amendment, renewal or extension
         of any Tranche A Letter of Credit or the occurrence and continuance of
         a Default or the return of the Tranche A Credit Linked Deposits, and
         that each such payment shall be made without any offset, abatement,
         withholding or reduction whatsoever. Without limiting the foregoing,
         each Tranche A Lender irrevocably authorizes the Administrative Agent
         to apply amounts of its Tranche A Credit-Linked Deposit as provided in
         this subparagraph (B).

                  (iii) Reimbursement. If an Issuing Bank shall make any LC
         Disbursement in respect of a Letter of Credit, the Borrower shall
         reimburse such LC Disbursement by paying (or causing any other account
         party in respect of such Letter of Credit to pay) to the Administrative
         Agent an amount equal to such LC Disbursement not later than the
         Business Day immediately following the day that the Borrower receives
         notice that an LC Disbursement has been made; provided that, if such LC
         Disbursement is not less than $1,000,000, the Borrower may, subject to
         the conditions to borrowing set forth herein, request in accordance
         with Section 2.03 or 2.04 that such payment be financed with an ABR
         Revolving Borrowing or Swingline Loan in an equivalent amount and, to
         the extent so financed, the Borrower's obligation to make such payment
         shall be discharged and replaced by the resulting ABR Revolving
         Borrowing or Swingline Loan.

                           (A) If the Borrower fails to make (or cause another
                  account party to make) any payment due under paragraph
                  (b)(iii) above with respect to a Revolving Letter of Credit
                  when due, the Administrative Agent shall notify each Revolving
                  Lender of the applicable Revolving LC Disbursement, the
                  payment then due from the Borrower in respect thereof and such
                  Lender's Applicable Percentage thereof. Promptly following
                  receipt of such notice, each Revolving Lender shall pay to the
                  Administrative Agent its Applicable Percentage of the payment
                  then due from the Borrower, in the same manner as provided in
                  Section 2.06 with respect to Loans made by such Lender (and
                  Section 2.06 shall apply, mutatis mutandis, to the payment
                  obligations of the Revolving Lenders), and the Administrative
                  Agent shall promptly pay to the relevant Issuing Bank the
                  amounts so received by it from the Revolving Lenders. Promptly
                  following receipt by the Administrative Agent of any payment
                  from the Borrower pursuant to this paragraph, the
                  Administrative Agent shall distribute such payment to the
                  appropriate Issuing Bank or, to the extent that Revolving
                  Lenders have made payments pursuant to this paragraph to
                  reimburse such Issuing Bank, then to such Lenders and such
                  Issuing Bank as their interests may appear. Any payment made
                  by a Revolving Lender pursuant to this paragraph to reimburse
                  an Issuing Bank for any Revolving LC Disbursement (other than
                  the funding of ABR Revolving Loans or a Swingline Loan as
                  contemplated above) shall not constitute

<PAGE>

                                                                              53

                  a Loan and shall not relieve the Borrower (or any other
                  account party in respect of the relevant Revolving Letter of
                  Credit) of its obligation to reimburse such LC Disbursement.

                           (B) If the Borrower fails to make (or cause another
                  account party to make) any payment due under paragraph
                  (b)(iii) above with respect to a Tranche A Letter of Credit,
                  the Administrative Agent shall notify each Tranche A Lender of
                  the applicable Tranche A LC Disbursement, the payment then due
                  from the Borrower in respect thereof and such Lender's
                  Applicable Percentage thereof, and the Administrative Agent
                  shall promptly pay to the applicable Issuing Bank each Tranche
                  A Lender's Applicable Percentage of such Tranche A LC
                  Disbursement from such Tranche A Lender's Tranche A
                  Credit-Linked Deposit. Promptly following receipt by the
                  Administrative Agent of any payment by the Borrower in respect
                  of any Tranche A LC Disbursement, the Administrative Agent
                  shall distribute such payment to the applicable Issuing Bank
                  or, to the extent payments have been made from the Tranche A
                  Credit-Linked Deposits, to the Tranche A Credit-Linked Deposit
                  Account to be added to the Tranche A Credit-Linked Deposits of
                  the Tranche A Lenders in accordance with their Applicable
                  Percentages. The Borrower acknowledges that each payment made
                  pursuant to this subparagraph (B) in respect of any Tranche A
                  LC Disbursement is required to be made for the benefit of the
                  distributees indicated in the immediately preceding sentence.
                  Any payment made from the Tranche A Credit-Linked Deposit
                  Account, or from funds of the Administrative Agent, pursuant
                  to this paragraph to reimburse an Issuing Bank for any Tranche
                  A LC Disbursement shall not constitute a Loan and shall not
                  relieve the Borrower of its obligation to reimburse such LC
                  Disbursement.

                  (iv) Obligations Absolute. The Borrower's obligation to
         reimburse LC Disbursements as provided in paragraph (b)(iii) of this
         Section shall be absolute, unconditional and irrevocable, and shall be
         performed strictly in accordance with the terms of this Agreement under
         any and all circumstances whatsoever and irrespective of (1) any lack
         of validity or enforceability of any Letter of Credit or this
         Agreement, or any term or provision therein, (2) any draft or other
         document presented under a Letter of Credit proving to be forged,
         fraudulent or invalid in any respect or any statement therein being
         untrue or inaccurate in any respect, (3) payment by any Issuing Bank
         under a Letter of Credit against presentation of a draft or other
         document that does not comply with the terms of such Letter of Credit
         (except as otherwise provided below), or (4) any other event or
         circumstance whatsoever, whether or not similar to any of the
         foregoing, that might, but for the provisions of this Section,
         constitute a legal or equitable discharge of, or provide a right of
         setoff against, the Borrower's obligations hereunder. Neither the
         Administrative Agent, the Lenders nor any Issuing Bank, nor any of
         their Related Parties, shall have any liability or responsibility by
         reason of or in connection with the issuance or

<PAGE>

                                                                              54

         transfer of any Letter of Credit or any payment or failure to make any
         payment thereunder (irrespective of any of the circumstances referred
         to in the preceding sentence), or any error, omission, interruption,
         loss or delay in transmission or delivery of any draft, notice or other
         communication under or relating to any Letter of Credit (including any
         document required to make a drawing thereunder), any error in
         interpretation of technical terms or any consequence arising from
         causes beyond the control of such Issuing Bank; provided that the
         foregoing shall not be construed to excuse such Issuing Bank from
         liability to the Borrower to the extent of any direct damages (as
         opposed to consequential damages, claims in respect of which are hereby
         waived by the Borrower to the extent permitted by applicable law)
         suffered by the Borrower that are caused by such Issuing Bank's failure
         to exercise care when determining whether drafts and other documents
         presented under a Letter of Credit comply with the terms thereof. The
         parties hereto expressly agree that, in the absence of gross negligence
         or willful misconduct on the part of an Issuing Bank (as finally
         determined by a court of competent jurisdiction), such Issuing Bank
         shall be deemed to have exercised care in each such determination. In
         furtherance of the foregoing and without limiting the generality
         thereof, the parties agree that, with respect to documents presented
         which appear on their face to be in substantial compliance with the
         terms of a Letter of Credit, an Issuing Bank may, in its sole
         discretion, either accept and make payment upon such documents without
         responsibility for further investigation, regardless of any notice or
         information to the contrary, or refuse to accept and make payment upon
         such documents if such documents are not in strict compliance with the
         terms of such Letter of Credit.

                  (v) Disbursement Procedures. The applicable Issuing Bank
         shall, promptly following its receipt thereof, examine all documents
         purporting to represent a demand for payment under a Letter of Credit.
         The applicable Issuing Bank shall promptly notify the Administrative
         Agent and the Borrower by telephone (confirmed by telecopy) of such
         demand for payment and whether such Issuing Bank has made or will make
         an LC Disbursement thereunder; provided that any failure to give or
         delay in giving such notice shall not relieve the Borrower of its
         obligation to reimburse such Issuing Bank and the Revolving Lenders or
         Tranche A Lenders with respect to any such LC Disbursement.

                  (vi) Interim Interest. If an Issuing Bank shall make any LC
         Disbursement, then, unless the Borrower shall reimburse such LC
         Disbursement in full on the date such LC Disbursement is made, the
         unpaid amount thereof shall bear interest, for each day from and
         including the date such LC Disbursement is made to but excluding the
         date that the Borrower (or any other account party) reimburses such LC
         Disbursement, at (1) in the case of a Revolving LC Disbursement, the
         rate per annum then applicable to ABR Revolving Loans and (2) in the
         case of a Tranche A LC Disbursement, the rate per annum then applicable
         to ABR Term Loans; provided that, if the Borrower fails to reimburse
         (or cause another account party to reimburse) such LC Disbursement when
         due pursuant to paragraph (b)(iii) of this Section, then Section
         2.13(c) shall apply. Interest accrued pursuant to this

<PAGE>

                                                                              55

         paragraph shall be for the account of the applicable Issuing Bank,
         except that interest accrued on and after the date of payment by any
         Revolving Lender pursuant to paragraph (b)(iii)(A) of this Section or
         from the Tranche A Credit-Linked Deposit of any Tranche A Lender
         pursuant to paragraph (b)(iii)(B) of this Section to reimburse such
         Issuing Bank shall be for the account of such Lender to the extent of
         such payment.

                  (vii) Addition and Replacement of an Issuing Bank. An Issuing
         Bank may be replaced at any time by written agreement among the
         Borrower, the Administrative Agent, the replaced Issuing Bank and the
         successor Issuing Bank. The Administrative Agent shall notify the
         Revolving Lenders and the Tranche A Lenders of any such replacement of
         an Issuing Bank. At the time any such replacement shall become
         effective, the Borrower shall pay all unpaid fees accrued for the
         account of the replaced Issuing Bank pursuant to Section 2.12(b). From
         and after the effective date of any such replacement, (1) the successor
         Issuing Bank shall have all the rights and obligations of the relevant
         Issuing Bank under this Agreement with respect to Letters of Credit to
         be issued thereafter and (2) references herein to the term "Issuing
         Bank" shall be deemed to refer to such successor or to any previous
         Issuing Bank, or to such successor and all previous Issuing Banks, as
         the context shall require. After the replacement of an Issuing Bank
         hereunder, the replaced Issuing Bank shall remain a party hereto and
         shall continue to have all the rights and obligations of an Issuing
         Bank under this Agreement with respect to Letters of Credit issued by
         it prior to such replacement, but shall not be required to issue
         additional Letters of Credit. A Revolving Lender may become an
         additional Issuing Bank hereunder pursuant to a written agreement among
         the Borrower, the Administrative Agent and such Revolving Lender. The
         Administrative Agent shall notify the Revolving Lenders of any such
         additional Issuing Bank. Notwithstanding the foregoing, the Borrower
         shall not designate any Revolving Lender as an Issuing Bank hereunder
         if, after giving effect thereto, there would be more than fifteen
         Issuing Banks (other than Issuing Banks with no outstanding Letters of
         Credit other than Existing Letters of Credit).

                  (viii) Cash Collateralization. If any Event of Default under
         Section 7.01 (i), (ii), (vii)(A), (viii) or (ix) shall occur and be
         continuing, on the Business Day that the Borrower receives notice from
         the Administrative Agent or the Required Lenders (or, if the maturity
         of the Loans has been accelerated, Tranche A Lenders and Revolving
         Lenders with LC Exposure representing greater than 50% of the total LC
         Exposure) demanding the deposit of cash collateral pursuant to this
         paragraph, the Borrower shall deposit in an account with the
         Administrative Agent, in the name of the Administrative Agent and for
         the benefit of the Lenders, an amount in cash equal to the LC Exposure
         as of such date plus any accrued and unpaid interest thereon; provided
         that the obligation to deposit such cash collateral shall become
         effective immediately, and such deposit shall become immediately due
         and payable, without demand or other notice of any kind, upon the
         occurrence of any Event of Default with respect to the Borrower
         described in clause (viii) or (ix) of Section 7.01. Each such

<PAGE>

                                                                              56

         deposit shall be held by the Administrative Agent as collateral for the
         payment and performance of the obligations of the Borrower under this
         Agreement. The Administrative Agent shall have exclusive dominion and
         control, including the exclusive right of withdrawal, over such
         account. Other than any interest earned on the investment of such
         deposits, which investments shall be made at the option and sole
         discretion of the Administrative Agent and at the Borrower's risk and
         expense, such deposits shall not bear interest. Interest or profits, if
         any, on such investments shall accumulate in such account. Moneys in
         such account shall be applied by the Administrative Agent to reimburse
         each Issuing Bank for LC Disbursements for which it has not been
         reimbursed and, to the extent not so applied, shall be held for the
         satisfaction of the reimbursement obligations of the Borrower for the
         LC Exposure at such time or, if the maturity of the Loans has been
         accelerated (but subject to the consent of Tranche A Lenders and
         Revolving Lenders with LC Exposure representing greater than 50% of the
         total LC Exposure), be applied to satisfy other obligations of the
         Borrower under this Agreement. If the Borrower is required to provide
         an amount of cash collateral hereunder as a result of the occurrence of
         an Event of Default, such amount (to the extent not applied as
         aforesaid) shall be returned to the Borrower within three Business Days
         after all Events of Default have been cured or waived. If the Borrower
         is required to provide an amount of cash collateral hereunder pursuant
         to Section 2.11(b), such amount (to the extent not applied as
         aforesaid) shall be returned to the Borrower as and to the extent that,
         after giving effect to such return, the Borrower would remain in
         compliance with Section 2.11(b) and no Default shall have occurred and
         be continuing.

                  SECTION 2.06. Funding of Borrowings. (a) Each Lender shall
  make each Loan to be made by it hereunder on the proposed date thereof by wire
  transfer of immediately available funds by 3:00 p.m., New York City time, to
  the account of the Administrative Agent most recently designated by it for
  such purpose by notice to the Lenders; provided that Swingline Loans shall be
  made as provided in Section 2.04. The Administrative Agent will make such
  Loans available to the Borrower by promptly crediting the amounts so received,
  in like funds, to an account of the Borrower maintained with the
  Administrative Agent in New York City and designated by the Borrower in the
  applicable Borrowing Request; provided that ABR Revolving Loans made to
  finance the reimbursement of an LC Disbursement as provided in Section
  2.05(b)(iii) shall be remitted by the Administrative Agent to the relevant
  Issuing Bank.

                  (b) Unless the Administrative Agent shall have received notice
from a Lender prior to the proposed date of any Borrowing that such Lender will
not make available to the Administrative Agent such Lender's share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Borrowing available to the Administrative Agent, then the
applicable Lender and the Borrower each agree to pay to the

<PAGE>

                                                                              57

Administrative Agent forthwith on demand such corresponding amount with interest
thereon, for each day from and including the date such amount is made available
to the Borrower to but excluding the date of payment to the Administrative
Agent, at the greater of the Federal Funds Effective Rate and a rate determined
by the Administrative Agent in accordance with banking industry rules on
interbank compensation. If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender's Loan included in such
Borrowing.

                  SECTION 2.07. Interest Elections. (a) Each Revolving Borrowing
  and Term Borrowing initially shall be of the Type specified in the applicable
  Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an
  initial Interest Period as specified in such Borrowing Request. Thereafter,
  the Borrower may elect to convert such Borrowing to a different Type or to
  continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect
  Interest Periods therefor, all as provided in this Section. The Borrower may
  elect different options with respect to different portions of the affected
  Borrowing, in which case each such portion shall be allocated ratably among
  the Lenders holding the Loans comprising such Borrowing, and the Loans
  comprising each such portion shall be considered a separate Borrowing. This
  Section shall not apply to Swingline Borrowings, which may not be converted or
  continued.

                  (b) To make an election pursuant to this Section, the Borrower
shall notify the Administrative Agent of such election by telephone by the time
that a Borrowing Request would be required under Section 2.03 if the Borrower
were requesting a Revolving Borrowing of the Type resulting from such election
to be made on the effective date of such election. Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election
Request in a form approved by the Administrative Agent and signed by the
Borrower.

                  (c) Each telephonic and written Interest Election Request
shall specify the following information in compliance with Section 2.02 and
paragraph (f) of this Section:

                  (i) the Borrowing to which such Interest Election Request
         applies and, if different options are being elected with respect to
         different portions thereof, the portions thereof to be allocated to
         each resulting Borrowing (in which case the information to be specified
         pursuant to clauses (iii) and (iv) below shall be specified for each
         resulting Borrowing);

                  (ii) the effective date of the election made pursuant to such
         Interest Election Request, which shall be a Business Day;

                  (iii) whether the resulting Borrowing is to be an ABR
         Borrowing or a Eurodollar Borrowing; and

                  (iv) if the resulting Borrowing is a Eurodollar Borrowing, the
         Interest Period to be applicable thereto after giving effect to such
         election, which shall be a period contemplated by the definition of the
         term "Interest Period".

<PAGE>

                                                                              58

If any such Interest Election Request requests a Eurodollar Borrowing but does
not specify an Interest Period, then the Borrower shall be deemed to have
selected an Interest Period of one month's duration.

                  (d) Promptly following receipt of an Interest Election
Request, the Administrative Agent shall advise each Lender of the details
thereof and of such Lender's portion of each resulting Borrowing.

                  (e) If the Borrower fails to deliver a timely Interest
Election Request with respect to a Eurodollar Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if
an Event of Default has occurred and is continuing and the Administrative Agent,
at the request of the Required Lenders, so notifies the Borrower, then, so long
as an Event of Default is continuing, (i) no outstanding Borrowing may be
converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each
Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the
Interest Period applicable thereto.

                  (f) A Borrowing of any Class may not be converted to or
continued as a Eurodollar Borrowing if after giving effect thereto (i) the
Interest Period therefor would end after a date on which any principal of the
Loans of such Class is scheduled to be repaid and (ii) the sum of the aggregate
principal amount of outstanding Eurodollar Borrowings of such Class with
Interest Periods ending on or prior to such scheduled repayment date plus the
aggregate principal amount of outstanding ABR Borrowings of such Class would be
less than the aggregate principal amount of Loans of such Class required to be
repaid on such scheduled repayment date.

                  SECTION 2.08. Termination and Reduction of Commitments; Return
  of Tranche A Credit-Linked Deposits. (a) Unless previously terminated, (i) the
  Term Loan Commitments shall terminate at 5:00 p.m., New York City time, on the
  Restatement Effective Date and (ii) the Revolving Commitments shall terminate
  on the Revolving Maturity Date. If any Tranche A Letter of Credit remains
  outstanding on the Tranche A Maturity Date, the Borrower will deposit with the
  Administrative Agent an amount in cash equal to 100% of the aggregate undrawn
  amount of such Letter of Credit to secure the Borrower's reimbursement
  obligations with respect to any drawings that may occur thereunder. Subject
  only to the Borrower's compliance with its obligations under the preceding
  sentence, any amount of the Tranche A Credit-Linked Deposits held in the
  Tranche A Credit-Linked Deposit Account will be returned to the Tranche A
  Lenders on the Tranche A Maturity Date pursuant to Section 2.10(d).

                  (b) The Borrower may at any time terminate, or from time to
time reduce, the Revolving, Swingline or Term Loan Commitments; provided that
(i) each reduction of the Revolving, Swingline or Term Loan Commitments shall be
in an amount that is an integral multiple of $1,000,000 and not less than
$5,000,000 and (ii) the Borrower shall not terminate or reduce the Revolving
Commitments if, after giving effect to any concurrent prepayment of the
Revolving Loans in accordance with

<PAGE>

                                                                              59

Section 2.11, the sum of the Revolving Exposures would exceed the total
Revolving Commitments. The Borrower may at any time or from time to time direct
the Administrative Agent to reduce the Total Tranche A Credit-Linked Deposits;
provided that (i) each reduction of the Tranche A Credit-Linked Deposits shall
be in an amount that is an integral multiple of $1,000,000 and not less than
$5,000,000 and (ii) the Borrower shall not direct the Administrative Agent to
reduce the Tranche A Credit-Linked Deposits if, after giving effect to such
reduction (and to the provisions of Section 2.05(a)), the aggregate Tranche A LC
Exposure would exceed the Total Tranche A Credit-Linked Deposit or the Revolving
Exposure would exceed the total Revolving Commitments. In the event the Tranche
A Credit-Linked Deposits shall be reduced as provided in the preceding sentence,
the Administrative Agent will return all amounts in the Tranche A Credit-Linked
Deposit Account in excess of the reduced Total Tranche A Credit-Linked Deposit
to the Tranche A Lenders, ratably in accordance with their Applicable
Percentages of the Total Tranche A Credit-Linked Deposit (as determined
immediately prior to such reduction).

                  (c) The Borrower shall notify the Administrative Agent of any
election to terminate or reduce the Revolving, Swingline or Term Loan
Commitments or the Total Tranche A Credit-Linked Deposit under paragraph (b) of
this Section, or any required reduction of the Revolving Commitments under
paragraph (b) of this Section, at least three Business Days prior to the
effective date of such termination or reduction, specifying such election and
the effective date thereof. Promptly following receipt of any such notice, the
Administrative Agent shall advise the Lenders of the contents thereof. Each
notice delivered by the Borrower pursuant to this Section shall be irrevocable;
provided that a notice of termination of the Revolving Commitments delivered by
the Borrower may state that such notice is conditioned upon the effectiveness of
other credit facilities, in which case such notice may be revoked by the
Borrower (by notice to the Administrative Agent on or prior to the specified
effective date) if such condition is not satisfied. Any termination of the
Revolving, Swingline or Term Loan Commitments or reduction of the Total Tranche
A Credit-Linked Deposit shall be permanent. Each termination of the Revolving,
Swingline or Term Loan Commitments or reduction of the Total Tranche A
Credit-Linked Deposit shall be made ratably among the applicable Lenders in
accordance with their Applicable Percentages.

                  SECTION 2.09. Repayment of Loans; Evidence of Debt. (a) The
  Borrower hereby unconditionally promises to pay (A) to the Administrative
  Agent for the account of each Revolving Lender the then unpaid principal
  amount of each Revolving Loan of such Revolving Lender on the Revolving
  Maturity Date, (B) to the Administrative Agent for the account of each Term
  Lender the then unpaid principal amount of each Term Loan of such Term Lender
  as provided in Section 2.10 and (C) to the Administrative Agent for the
  account of each Swingline Lender the then unpaid principal amount of each
  Swingline Loan on the earlier of the Revolving Maturity Date and the first
  date after such Swingline Loan is made that is the 15th or last day of a
  calendar month and is at least ten Business Days after such Swingline Loan is
  made; provided that on each date that a Revolving Borrowing is made, the
  Borrower shall repay all Swingline Loans then outstanding.

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                                                                              60

                  (b) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of the Borrower to
such Lender resulting from each Loan made by such Lender, including the amounts
of principal and interest payable and paid to such Lender from time to time
hereunder.

                  (c) The Administrative Agent shall maintain accounts in which
it shall record (i) the amount of each Loan made hereunder, the Class and Type
thereof and the Interest Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder for the account of the Lenders and each
Lender's share thereof.

                  (d) The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans in accordance with the terms of this Agreement.

                  (e) Any Lender may request that Loans of any Class made by it
be evidenced by a promissory note. In such event, the Borrower shall prepare,
execute and deliver to such Lender a promissory note payable to the order of
such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Administrative Agent. Thereafter, the
Loans evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 9.04) be represented by one or
more promissory notes in such form payable to the order of the payee named
therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).

                  SECTION 2.10. Amortization of Term Loans and Tranche A
  Credit-Linked Deposits. (a) Subject to adjustment pursuant to paragraph (b) of
  this Section, the Borrower shall repay Term Borrowings in the aggregate
  principal amount of $15,000,000 on September 30 of each year, beginning on
  September 30, 2003. To the extent not previously paid, all Term Loans shall be
  due and payable on the Term Loan Maturity Date.

                  (b) If the initial aggregate amount of the Lenders' Term Loan
Commitments exceeds the aggregate principal amount of Term Loans that are made
on the Restatement Effective Date, then the scheduled repayments of Term
Borrowings to be made pursuant to this Section shall be reduced ratably by an
aggregate amount equal to such excess. Any prepayment of a Term Borrowing shall
be applied to reduce the subsequent scheduled repayments of the Term Borrowings
to be made pursuant to this Section ratably; provided that, at the option of the
Borrower, any prepayment made pursuant to Section 2.11(a) may be applied either
(a) first to reduce the next scheduled repayments of the Term Borrowings to be
made pursuant to this Section in order of maturity or (b) ratably. All Excess
Cash Flow to be applied at any time to prepay Term Borrowings pursuant to
Section 2.11(d) shall be applied, at the Borrower's option,

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                                                                              61

(a) first to reduce the next scheduled repayments of the Term Borrowings to be
made pursuant to this Section in order of maturity or (b) ratably.

                  (c) Each payment of Borrowings pursuant to this Section 2.10
shall be accompanied by accrued interest on the principal amount paid to but
excluding the date of payment.

                  (d) The Administrative Agent shall return Tranche A
Credit-Linked Deposits in the aggregate amount of $2,000,000 to the Tranche A
Lenders on September 30 of each year, beginning on September 30, 2004. To the
extent not previously returned, all Tranche A Credit-Linked Deposits shall be
returned to the Tranche A Lenders on the Tranche A Maturity Date. Any optional
return of Tranche A Credit-Linked Deposits effected pursuant to Section 2.08
shall be applied to reduce the subsequent scheduled returns of Tranche A
Credit-Linked Deposits to be effected pursuant to this Section ratably. Each
return of Tranche A Credit-Linked Deposits pursuant to this Section 2.10(d)
shall be accompanied by accrued interest on the amount of Tranche A
Credit-Linked Deposits paid to but excluding the date of return.

                  SECTION 2.11. Prepayment of Loans. (a) The Borrower shall have
  the right at any time and from time to time to prepay any Borrowing in whole
  or in part, subject to the requirements of this Section.

                  (b) In the event and on such occasion that the sum of the
Revolving Exposures exceeds the total Revolving Commitments, the Borrower shall
prepay Revolving Borrowings or Swingline Borrowings (or, if no such Borrowings
are outstanding, deposit cash collateral in an account with the Administrative
Agent pursuant to Section 2.05(b)(viii)) in an aggregate amount equal to such
excess.

                  (c) In the event and on each occasion that any Net Available
Proceeds are received by or on behalf of Allied Waste, the Borrower or any
Restricted Subsidiary in respect of any Prepayment Event, the Borrower shall,
within three Business Days after such Net Available Proceeds are received,
prepay Term Borrowings in an aggregate amount equal to the amount of the
Relevant Percentage of such Net Available Proceeds; provided that

                  (i) in the case of Net Available Proceeds arising out of the
         sale of Securitization Assets, the issuance of Permitted Cure
         Securities or the issuance or incurrence of Indebtedness pursuant to
         Section 6.01(a)(xv) or Section 6.01(a)(xviii), the Borrower shall
         prepay Term Borrowings in an aggregate amount equal to 100% of such Net
         Available Proceeds; provided, however, that the Borrower shall not be
         required to prepay Term Borrowings with Net Available Proceeds received
         in connection with the sale of Securitization Assets unless the Net
         Available Proceeds received in connection with all such sales exceeds
         $5,000,000 in the aggregate in any fiscal year of the Borrower (in
         which case the Borrower shall be required to prepay Term Borrowings in
         an amount equal to 100% of such Net Available Proceeds received);

                  (ii) subject to clause (iv) below, in the case of the issuance
         of Qualifying Senior Secured Indebtedness pursuant to

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                                                                              62

         Section 6.01(a)(xiii), (A) the Net Available Proceeds received in
         connection with the issuance after the Restatement Effective Date of up
         to $825,000,000 of the initial aggregate principal amount of such
         Qualifying Senior Secured Indebtedness may (to the extent such Net
         Available Proceeds are not applied to prepay Term Borrowings pursuant
         to this Section 2.11(c)) be applied to the repayment, redemption or
         repurchase of Targeted Senior Secured Indebtedness, (B) the Net
         Available Proceeds of additional issuances of such Qualifying Senior
         Secured Indebtedness shall be applied (x) if received when the Leverage
         Ratio is 3.75 to 1.00 or greater, 50% to the repayment of Term Loans
         and 50% to the repayment, redemption or repurchase of Targeted Senior
         Secured Indebtedness and (y) if received when the Leverage Ratio is
         less than 3.75 to 1.00, 100% to the repayment, redemption or repurchase
         of Targeted Senior Secured Indebtedness;

                  (iii) subject to clause (iv) below, 100% of the Net Available
         Proceeds from the issuance of Permitted Subordinated Debt pursuant to
         Section 6.01(a)(xiv) may be applied to the repayment, redemption or
         repurchase of Refinanceable Indebtedness;

                  (iv) notwithstanding the foregoing, 100% of any Net Available
         Proceeds from the issuance in a Permitted Refinancing Transaction of
         Qualifying Senior Secured Indebtedness or Permitted Subordinated Debt
         pursuant to Section 6.01(a)(xiii) or (xiv) which have not been applied
         to the repayment, repurchase or redemption of the relevant Targeted
         Senior Secured Indebtedness or Refinanceable Indebtedness by the 90th
         day following such issuance, shall be applied to the prepayment of Term
         Loans on such 90th day.

Notwithstanding the foregoing, in the case of any event described in clause (a)
of the definition of the term Prepayment Event, if the Borrower shall deliver to
the Administrative Agent a certificate of a Financial Officer to the effect that
the Borrower or any Subsidiary intends to apply the Net Available Proceeds from
such event, within one year after receipt of such Net Available Proceeds, to
acquire real property, equipment or other tangible assets (including pursuant to
Permitted Acquisitions) to be used in the business of the Borrower and the
Subsidiaries, and certifying that no Event of Default has occurred and is
continuing, then no prepayment shall be required pursuant to this paragraph in
respect of Net Available Proceeds so applied by the end of such one-year period.
The amount of the Relevant Percentage of such Net Available Proceeds not so
applied by the end of such one-year period shall be applied to the prepayment of
Term Borrowings at such time. Notwithstanding any other provision of this
Agreement, including the provisions of Sections 2.10 and 2.11, any and all
proceeds, including any Net Available Proceeds, from the sale or disposition of
Collateral subject to Liens under the Security Agreements or the Pledge
Agreements at the time of such sale or disposition and made pursuant to the
exercise of remedies under such Security Documents shall be applied in
accordance with the provisions of the applicable Security Agreement or Pledge
Agreement rather than the provisions of this Agreement. Notwithstanding any
provision of this Agreement to the contrary, in the case of a Prepayment Event
referred to in clause (d) of the definition of "Prepayment Event", the Borrower
and/or any applicable Restricted Subsidiary will for purposes hereof (i) be
deemed to have received a

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                                                                              63

cash payment in respect of such Prepayment Event to the extent that the Borrower
or such Restricted Subsidiary, as the case may be, receives a cash payment in
respect of the applicable Securitization Assets from the applicable
Securitization Vehicle and such cash payment is derived from proceeds from the
issuance of Third Party Securities and (ii) will not be deemed to have received
a cash payment from such Prepayment Event to the extent that such Prepayment
Event occurs in connection with ongoing sales of Securitization Assets to such
Securitization Vehicle that are purchased by it with the proceeds from
collections of Securitization Assets previously purchased by it pursuant to such
Securitization.

                  (d) Following the end of each Excess Cash Flow Calculation
Period, commencing with the Excess Cash Flow Calculation Period ending March 31,
2004, the Borrower shall prepay Term Loans in an aggregate amount equal to 50%
of Excess Cash Flow for such Excess Cash Flow Calculation Period minus the
aggregate amount of any voluntary prepayments of the Term Loans and Revolving
Loans (to the extent accompanied by a corresponding permanent reduction of the
Revolving Commitment) during such Excess Cash Flow Calculation Period. Each
prepayment pursuant to this paragraph shall be made on or before the date on
which financial statements are delivered pursuant to Section 5.04(b) with
respect to the most recent fiscal quarter included in the Excess Cash Flow
Calculation Period in respect of which Excess Cash Flow is being calculated (and
in any event within 60 days after the end of such fiscal quarter).

                  (e) The Borrower shall notify the Administrative Agent (and,
in the case of prepayment of a Swingline Loan, the Swingline Lenders) by
telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Borrowing or a reduction of the Total Tranche A
Credit-Linked Deposits, not later than 1:00 p.m., New York City time, three
Business Days before the date of prepayment or reduction, (ii) in the case of
prepayment of an ABR Borrowing, not later than 1:00 p.m., New York City time,
one Business Day before the date of prepayment or (iii) in the case of
prepayment of a Swingline Loan, not later than 1:00 p.m., New York City time, on
the date of prepayment. Each such notice shall be irrevocable and shall specify
the prepayment date, the principal amount of each Borrowing or portion thereof
to be prepaid and, in the case of a mandatory prepayment, a reasonably detailed
calculation of the amount of such prepayment; provided that, if a notice of
optional prepayment is given in connection with a conditional notice of
termination of the Revolving Commitments as contemplated by Section 2.08, then
such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.08. Promptly following receipt of any such
notice (other than a notice relating solely to Swingline Loans), the
Administrative Agent shall advise the Lenders of the contents thereof. Each
partial prepayment of any Borrowing shall be in an amount that would be
permitted in the case of a Loan or a Borrowing of the same Type as provided in
Section 2.02, except as necessary to apply fully the required amount of a
mandatory prepayment. Except as otherwise set forth herein, (i) each prepayment
of a Borrowing shall be applied ratably to the Loans included in the prepaid
Borrowing and (ii) each reduction of the Total Tranche A Credit-Lined Deposit
shall be applied ratably to the Tranche A Credit-Linked Deposits of the Tranche
A Lenders. Each optional prepayment of Borrowings made pursuant to

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                                                                              64

Section 2.11(a) shall be in an amount that is an integral multiple of $1,000,000
and not less than $5,000,000 (or the entire outstanding principal amount of any
Class of Borrowings, if such amount is less than $5,000,000). Prepayments shall
be accompanied by accrued interest to the extent required by Section 2.13.

                  SECTION 2.12. Fees. (a) The Borrower agrees to pay to the
  Administrative Agent for the account of each Lender a commitment fee, which
  shall accrue at the rate of 0.75% per annum on the daily unused amount of the
  Revolving Commitment of such Lender, during the period from and including the
  Restatement Effective Date to but excluding the date on which such Commitment
  terminates. Accrued commitment fees shall be payable in arrears on the last
  day of March, June, September and December of each year and on the date on
  which the Revolving Commitments terminate, commencing on the first such date
  to occur after the Restatement Effective Date. All commitment fees shall be
  computed on the basis of a year of 360 days and shall be payable for the
  actual number of days elapsed (including the first day but excluding the last
  day). For purposes of computing commitment fees, a Revolving Commitment of a
  Lender shall be deemed to be used to the extent of the outstanding Revolving
  Loans and LC Exposure of such Lender (and the Swingline Exposure of such
  Lender shall be disregarded for such purpose).

                  (b) The Borrower agrees to pay (i) to the Administrative Agent
for the account of each Revolving Lender a participation fee with respect to its
participations in Revolving Letters of Credit, which shall accrue at the
Applicable Margin from time to time in effect in respect of Eurodollar Revolving
Loans on the daily amount of such Lender's Revolving LC Exposure (excluding any
portion thereof attributable to unreimbursed Revolving LC Disbursements) during
the period from and including the Restatement Effective Date to but excluding
the date on which such Lender ceases to have any Revolving LC Exposure, and (ii)
to each Issuing Bank a fronting fee, which shall accrue at the rate or rates per
annum separately agreed upon between the Borrower and such Issuing Bank, not to
exceed 0.25% per annum, on the outstanding amount of each Revolving Letter of
Credit issued by such Issuing Bank during the period from and including the date
of issuance thereof to but excluding the date of termination, expiration or
drawing in full of such Revolving Letter of Credit, as well as such Issuing
Bank's standard fees with respect to the issuance, amendment, renewal or
extension of any Revolving Letter of Credit or processing of drawings
thereunder. Participation fees and fronting fees in respect of Revolving Letters
of Credit accrued through and including the last day of March, June, September
and December of each year shall be payable on the third Business Day following
such last day, commencing on the first such date to occur after the Restatement
Effective Date; provided that all such fees shall be payable on the date on
which the Revolving Commitments terminate and any such fees accruing after the
date on which the Revolving Commitments terminate shall be payable on demand.
Any other fees payable to an Issuing Bank pursuant to this paragraph shall be
payable within 10 days after demand. All participation fees and fronting fees in
respect of Revolving Letters of Credit shall be computed on the basis of a year
of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).

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                                                                              65

                  (c) The Borrower agrees to pay (i) in addition to the fees
payable to the Tranche A Lenders pursuant to Section 2.20(b), to the
Administrative Agent for the account of each Tranche A Lender a participation
fee with respect to its participations in Tranche A Letters of Credit, which
shall accrue at the Applicable Margin from time to time in effect in respect of
Eurodollar Term Loans on the daily amount of such Tranche A Lender's Tranche A
Credit-Linked Deposit during the period from and including the Restatement
Effective Date to but excluding the date on which the entire amount of such
Lender's Tranche A Credit-Linked Deposit is returned to it and (ii) to each
Issuing Bank a fronting fee, which shall accrue at the rate of 0.25% per annum
on the outstanding amount of each Tranche A Letter of Credit (including each
Existing Letter of Credit that is a Tranche A Letter of Credit) issued by such
Issuing Bank from and including the date of issuance thereof to but excluding
the date of termination, expiration or drawing in full of such Tranche A Letter
of Credit, as well as such Issuing Bank's standard fees with respect to the
issuance, amendment, renewal or extension of any Tranche A Letter of Credit or
processing of drawings thereunder. Participation fees and fronting fees in
respect of Tranche A Letters of Credit accrued through and including the last
day of March, June, September and December of each year shall be payable on the
third Business Day following such last day, commencing on the first such date to
occur after the Restatement Effective Date; provided that all such fees shall be
payable on the date on which the Tranche A Credit-Linked Deposits are returned
to the Tranche A Lenders and any such fees accruing after the date on which the
Tranche A Credit-Linked Deposits are returned to the Tranche A Lenders shall be
payable on demand. Any other fees payable to any Issuing Bank pursuant to this
paragraph shall be payable within 10 days after demand. All participation fees
and fronting fees in respect of Tranche A Letters of Credit shall be computed on
the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).

                  (d) The Borrower agrees to pay to the Administrative Agent,
for its own account, fees payable in the amounts and at the times separately
agreed upon between the Borrower and the Administrative Agent.

                  (e) All fees payable hereunder shall be paid on the dates due,
in immediately available funds, to the Administrative Agent (or to an Issuing
Bank, in the case of fees payable to it) for distribution, in the case of
commitment fees and participation fees, to the Lenders entitled thereto. Fees
paid shall not be refundable under any circumstances.

                  SECTION 2.13. Interest. (a) The Loans comprising each ABR
  Borrowing (including each Swingline Loan) shall bear interest at the Alternate
  Base Rate plus the Applicable Margin.

                  (b) The Loans comprising each Eurodollar Borrowing shall bear
interest at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Margin.

                  (c) Notwithstanding the foregoing, if any principal of or
interest on any Loan or Tranche A LC Disbursement or any fee or other

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                                                                              66

amount payable by the Borrower hereunder is not paid when due, whether at stated
maturity, upon acceleration or otherwise, such overdue amount shall bear
interest, after as well as before judgment, at a rate per annum equal to (i) in
the case of overdue principal of any Loan, 2% plus the rate otherwise applicable
to such Loan as provided in the preceding paragraphs of this Section, (ii) in
the case of overdue unreimbursed amounts with respect to any Tranche A LC
Disbursement, 2% plus the rate otherwise applicable to such Tranche A LC
Disbursement as provided in Section 2.05(b) or (iii) in the case of any other
amount, 2% plus the rate applicable to ABR Revolving Loans as provided in
paragraph (a) of this Section.

                  (d) Accrued interest on each Loan shall be payable in arrears
on each Interest Payment Date for such Loan and, in the case of Revolving Loans,
upon termination of the Revolving Commitments; provided that (i) interest
accrued pursuant to paragraph (c) of this Section shall be payable on demand,
(ii) in the event of any repayment or prepayment of any Loan (other than a
prepayment of an ABR Revolving Loan prior to the end of the Revolving
Availability Period), accrued interest on the principal amount repaid or prepaid
shall be payable on the date of such repayment or prepayment and (iii) in the
event of any conversion of any Eurodollar Loan prior to the end of the current
Interest Period therefor, accrued interest on such Loan shall be payable on the
effective date of such conversion.

                  (e) All interest hereunder shall be computed on the basis of a
year of 360 days, except that interest computed by reference to the Alternate
Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall
be computed on the basis of a year of 365 days (or 366 days in a leap year), and
in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable Alternate Base Rate or
Adjusted LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

                  SECTION 2.14. Alternate Rate of Interest. If prior to (i) the
  commencement of any Interest Period for a Eurodollar Borrowing or (ii) the
  determination of the Benchmark LIBOR Rate (as defined in Section 2.20(b)) on
  any day:

                  (a) the Administrative Agent determines (which determination
         shall be conclusive absent manifest error) that adequate and reasonable
         means do not exist for ascertaining the Adjusted LIBO Rate for such
         Interest Period or the Benchmark LIBOR Rate for such day; or

                  (b) the Administrative Agent is advised by the Required
         Lenders that the Adjusted LIBO Rate for such Interest Period or the
         Benchmark LIBOR Rate for such day will not adequately and fairly
         reflect the cost to such Lenders of making or maintaining their Loans
         included in such Borrowing or such Tranche A Credit-Linked Deposit, as
         applicable, for such Interest Period or such day, as the case may be;

then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable

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                                                                              67

thereafter and, until the Administrative Agent notifies the Borrower and the
Lenders that the circumstances giving rise to such notice no longer exist, (i)
any Interest Election Request that requests the conversion of any Borrowing to,
or continuation of any Borrowing as, a Eurodollar Borrowing shall be
ineffective, (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
Borrowing shall be made as an ABR Borrowing and (iii) the Tranche A
Credit-Linked Deposits shall be invested so as to earn a return equal to the
greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation.

                  SECTION 2.15. Increased Costs. (a) If any Change in Law shall:

                  (i) impose, modify or deem applicable any reserve, special
         deposit or similar requirement against assets of, deposits with or for
         the account of, or credit extended by, any Lender or the Administrative
         Agent (except any such reserve requirement reflected in the Adjusted
         LIBO Rate, where applicable) or any Issuing Bank; or

                  (ii) impose on any Lender or any Issuing Bank or the
         Administrative Agent or the London interbank market any other condition
         affecting this Agreement or Eurodollar Loans made by such Lender or any
         Letter of Credit or participation therein or any Tranche A
         Credit-Linked Deposit;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or such
Issuing Bank or the Administrative Agent of participating in, issuing or
maintaining any Letter of Credit or any Tranche A Credit-Linked Deposit or to
reduce the amount of any sum received or receivable by such Lender or Issuing
Bank hereunder (whether of principal, interest or otherwise), then the Borrower
will pay to such Lender or Issuing Bank or the Administrative Agent, as the case
may be, such additional amount or amounts as will compensate such Lender or
Issuing Bank or the Administrative Agent, as the case may be, for such
additional costs incurred or reduction suffered.

                  (b) If any Lender or any Issuing Bank or the Administrative
Agent determines that any Change in Law regarding capital requirements has or
would have the effect of reducing the rate of return on such Lender's or Issuing
Bank's or the Administrative Agent's capital or on the capital of such Lender's
or Issuing Bank's or the Administrative Agent's holding company, if any, as a
consequence of this Agreement or the Loans made by, or participations in Letters
of Credit held by, such Lender or the Administrative Agent, or the Letters of
Credit issued by such Issuing Bank, to a level below that which such Lender or
such Issuing Bank or the Administrative Agent or such Lender's or Issuing Bank's
or the Administrative Agent's holding company could have achieved but for such
Change in Law (taking into consideration such Lender's or Issuing Bank's or the
Administrative Agent's policies and the policies of such Lender's or Issuing
Bank's or the Administrative Agent's holding company with respect to capital
adequacy), then from time to time the

<PAGE>

                                                                              68

Borrower will pay to such Lender or Issuing Bank or the Administrative Agent, as
the case may be, such additional amount or amounts as will compensate such
Lender or Issuing Bank or the Administrative Agent or such Lender's or Issuing
Bank's or the Administrative Agent's holding company for any such reduction
suffered.

                  (c) A certificate of a Lender or Issuing Bank or the
Administrative Agent setting forth the amount or amounts necessary to compensate
such Lender or Issuing Bank or the Administrative Agent or its holding company,
as the case may be, as specified in paragraph (a) or (b) of this Section shall
be delivered to the Borrower and shall be conclusive absent manifest error. The
Borrower shall pay such Lender or Issuing Bank or the Administrative Agent, as
the case may be, the amount shown as due on any such certificate within 10 days
after receipt thereof.

                  (d) Failure or delay on the part of any Lender or Issuing Bank
or the Administrative Agent to demand compensation pursuant to this Section
shall not constitute a waiver of such Lender's or Issuing Bank's or the
Administrative Agent's right to demand such compensation; provided that the
Borrower shall not be required to compensate a Lender or an Issuing Bank or the
Administrative Agent pursuant to this Section for any increased costs or
reductions incurred more than 90 days prior to the date that such Lender or
Issuing Bank or the Administrative Agent, as the case may be, notifies the
Borrower of the Change in Law giving rise to such increased costs or reductions
and of such Lender's or Issuing Bank's or the Administrative Agent's intention
to claim compensation therefor; provided further that, if the Change in Law
giving rise to such increased costs or reductions is retroactive, then the
90-day period referred to above shall be extended to include the period of
retroactive effect thereof.

                  (e) Notwithstanding the foregoing, Section 2.17, and not this
Section 2.15, is the only section of this Agreement that deals with increased
costs with respect to Taxes.

                  SECTION 2.16. Break Funding Payments. In the event of (a) the
  payment of any principal of any Eurodollar Loan other than on the last day of
  an Interest Period applicable thereto (including as a result of an Event of
  Default), (b) the conversion of any Eurodollar Loan other than on the last day
  of the Interest Period applicable thereto, (c) the failure to borrow, convert,
  continue or prepay any Revolving Loan or Term Loan on the date specified in
  any notice delivered pursuant hereto (regardless of whether such notice may be
  revoked under Section 2.11(e) and is revoked in accordance therewith), or (d)
  the assignment of any Eurodollar Loan other than on the last day of the
  Interest Period applicable thereto as a result of a request by the Borrower
  pursuant to Section 2.19, then, in any such event, the Borrower shall
  compensate each Lender for the loss, cost and expense attributable to such
  event. In the case of a Eurodollar Loan, such loss, cost or expense to any
  Lender shall be deemed to consist solely of an amount determined by such
  Lender to be the excess, if any, of (i) the amount of interest which would
  have accrued on the principal amount of such Loan had such event not occurred,
  at the Adjusted LIBO Rate that would have been applicable to such Loan, for
  the period from the date of such event to the last day of the then current
  Interest

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                                                                              69

  Period therefor (or, in the case of a failure to borrow, convert or continue,
  for the period that would have been the Interest Period for such Loan), over
  (ii) the amount of interest which would accrue on such principal amount for
  such period at the interest rate which such Lender would bid were it to bid,
  at the commencement of such period, for dollar deposits of a comparable amount
  and period from other banks in the Eurodollar market. A certificate of any
  Lender setting forth any amount or amounts that such Lender is entitled to
  receive pursuant to this Section shall be delivered to the Borrower and shall
  be conclusive absent manifest error. The Borrower shall pay such Lender the
  amount shown as due on any such certificate within 10 days after receipt
  thereof.

                  SECTION 2.17. Taxes. (a) Any and all payments by or on account
  of any obligation of the Borrower hereunder or under any other Loan Document
  shall be made free and clear of and without deduction for any Indemnified
  Taxes or Other Taxes; provided that if the Borrower shall be required to
  deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the
  sum payable shall be increased as necessary so that after making all required
  deductions (including deductions applicable to additional sums payable under
  this Section) the Administrative Agent, Lender or Issuing Bank (as the case
  may be) receives an amount equal to the sum it would have received had no such
  deductions been made, (ii) the Borrower shall make such deductions and (iii)
  the Borrower shall pay the full amount deducted to the relevant Governmental
  Authority in accordance with applicable law.

                  (b) Any and all payments by or on account of any obligation of
the Administrative Agent pursuant to Section 2.20(b) hereunder shall be made
free and clear of and without deduction for any Indemnified Taxes or Other
Taxes; provided that if the Administrative Agent shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the Administrative
Agent shall so notify the Borrower and advise it of the additional amount
required to be paid so that the sum payable by the Administrative Agent pursuant
to Section 2.20(b) after making all required deductions (including deductions
applicable to additional sums payable under this Section) to the Tranche A
Lenders is an amount from the Administrative Agent equal to the sum they would
have received from the Administrative Agent had no deductions been made, (ii)
the Borrower shall pay such additional amount to the Administrative Agent, (iii)
the Administrative Agent shall make all required deductions, (iv) the
Administrative Agent shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law and (v) the Borrower
shall indemnify, within 10 days after written demand therefor, the
Administrative Agent for the full amount of any deductions paid by the
Administrative Agent with respect to any payments made on account of any
obligation of the Administrative Agent pursuant to Section 2.20(b).

                  (c) The Borrower shall indemnify the Administrative Agent,
each Lender and the applicable Issuing Bank, within 10 days after written demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by
the Administrative Agent, such Lender or the Issuing Bank, as the case may be,
on or with respect to any payment by or on account of any obligation of the
Borrower hereunder or under any other

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                                                                              70

Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on
or attributable to amounts payable under this Section) and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to
the amount of such payment or liability, providing a reasonably detailed
explanation and calculation thereof, prepared in good faith and delivered to the
Borrower by a Lender or an Issuing Bank, or by the Administrative Agent on its
own behalf or on behalf of a Lender or an Issuing Bank, shall be conclusive
absent manifest error.

                  (d) As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower
shall deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

                  (e) (i) Each Foreign Lender (and, where required by applicable
law, such Foreign Lender's beneficial owners) shall deliver to the Borrower
(with a copy to the Administrative Agent) two copies of either United States
Internal Revenue Service Form W-8BEN or Form W-8ECI or any subsequent versions
thereof or successors thereto, or, in the case of a Foreign Lender claiming
exemption from U.S. Federal withholding tax under Section 871(h) or 881(c) of
the Code with respect to payments of "portfolio interest", a Form W-8BEN, or any
subsequent versions thereof or successors thereto (and, if such Foreign Lender
(and, as applicable, such Foreign Lender's beneficial owners) delivers a Form
W-8BEN, a certificate in the form of the certificate attached hereto as Exhibit
L (the "Portfolio Exemption Certificate") representing, inter alia, that such
Foreign Lender (and, as applicable, such Foreign Lender's beneficial owners) is
not a bank for purposes of Section 881(c) of the Code, is not a 10-percent
shareholder of the Borrower (within the meaning of Section 871(h)(3)(B) of the
Code) and is not a controlled foreign corporation related to the Borrower
(within the meaning of Section 864(d)(4) of the Code)), and such other forms or
statements reasonably requested by the Borrower, in the case of all the
foregoing, properly completed and duly executed by such Foreign Lender (and, as
applicable, such Foreign Lender's beneficial owners) claiming complete exemption
from, or reduced rate of, U.S. Federal withholding tax on payments by the
Borrower under this Agreement or any other Loan Document. Such forms shall be
delivered by each Foreign Lender (and, as applicable, such Foreign Lender's
beneficial owners) on or before the date it becomes a party to this Agreement or
designates a new lending office. In addition, each Foreign Lender (and, as
applicable, such Foreign Lender's beneficial owners) shall deliver such forms
promptly upon the obsolescence, expiration or invalidity of any form previously
delivered by such Foreign Lender (and, as applicable, such Foreign Lender's
beneficial owners). In the case of a Foreign Lender (and, as applicable, such
Foreign Lender's beneficial owners) that delivers a Portfolio Interest Exemption
Certificate, such Foreign Lender (and, as applicable, its beneficial owners)
shall deliver such certificate and other forms as reasonably requested by the
Borrower on a biannual basis. In addition, each Foreign Lender agrees to notify
promptly the Borrower and the Administrative Agent if it (or, as applicable, its
beneficial
<PAGE>

                                                                              71

owners) is no longer able to deliver, or if it is required to withdraw or
cancel, any form or statement previously delivered by it pursuant to this
Section 2.17(e). Notwithstanding any other provision of this Section 2.17, a
Foreign Lender (and, as applicable, such Foreign Lender's beneficial owners)
shall not be required to deliver any form pursuant to this Section 2.17(e) that
such Foreign Lender (and, as applicable, such Foreign Lender's beneficial
owners) is not legally able to deliver (it being understood and agreed that the
Borrower shall withhold or deduct such amounts from any payments made to such
Foreign Lender that the Borrower reasonably determines are required by law).

                  (ii) Each Lender that is not a Foreign Lender and the
Administrative Agent shall deliver to the Borrower (with a copy to the
Administrative Agent) two copies of United States Internal Revenue Service Form
W-9, or any subsequent versions thereof or successors thereto, unless such
Lender otherwise establishes that such Lender is otherwise eligible for an
exemption from backup withholding tax or any other applicable withholding tax.
Such forms shall be delivered by such Lender on or before the date it becomes a
party to this Agreement or designates a new lending office and such Lender shall
deliver such forms promptly upon the obsolescence, expiration or invalidity of
any form previously delivered by such Lender.

                  (iii) Each Lender (and each former Lender) agrees to indemnify
and hold harmless the Borrower and the Administrative Agent from and against any
Taxes imposed by or on behalf of the United States or any taxing jurisdiction
thereof (including any interest, penalty, addition to tax or additional amount
due) and reasonable expenses arising therefrom or with respect thereto
("Losses") incurred or payable by the Borrower or the Administrative Agent as a
result of the failure of the Borrower or the Administrative Agent to comply with
its obligations to deduct or withhold any Taxes imposed by or on behalf of the
United States or any taxing jurisdiction thereof from any payments made pursuant
to this Agreement which failure resulted from the Borrower's or the
Administrative Agent's reliance on any representation, covenant, form,
statement, certificate or other information provided to it by such Lender
pursuant to this Section 2.17(e) including, for the avoidance of doubt, (x) any
Losses arising by virtue of such Lender being a "conduit entity" within the
meaning of Treasury Reg. Section 1.881-3 or any successor provision thereto and
(y) in the case of a Lender which sells a participation, any Losses which arise
as a result of such participation but, in all cases, excluding Losses resulting
solely from any action or failure to act by the Borrower (other than the
Borrower's reliance on any such representation, covenant, form, statement or
certificate or any such action as required by applicable law or by this
Agreement).

                  (f) If the Administrative Agent or a Lender or any Issuing
Bank determines, in its reasonable, good faith judgment that it has received a
refund of or with respect to any Taxes as to which it has been indemnified by
the Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section 2.17, it shall pay over such refund to the Borrower
(but only to the extent of indemnity payments made, or additional amounts paid,
by the Borrower under this Section 2.17 with respect to the Taxes giving rise to
such refund), net of all out-of-pocket expenses of the Administrative Agent or
such Lender or such Issuing Bank and without interest (other than any interest
paid

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                                                                              72

by the relevant Governmental Authority with respect to such refund); provided,
however, that the Borrower, upon the request of the Administrative Agent or such
Lender or such Issuing Bank, agrees to repay the amount paid over to the
Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent or such Lender or such
Issuing Bank in the event the Administrative Agent or such Lender or such
Issuing Bank is required to repay such refund to such Governmental Authority.
Nothing contained in this Section 2.17 shall require the Administrative Agent or
any Lender or any Issuing Bank to make available its tax returns (or any other
information relating to its Taxes which it deems confidential) to the Borrower
or any other Person.

                  SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing
  of Setoffs. (a) The Borrower shall make each payment required to be made by it
  hereunder or under any other Loan Document (whether of principal, interest,
  fees or reimbursement of LC Disbursements, or of amounts payable under Section
  2.15, 2.16 or 2.17, or otherwise) prior to the time expressly required
  hereunder or under such other Loan Document for such payment (or, if no such
  time is expressly required, prior to 2:00 p.m., New York City time), on the
  date when due, in immediately available funds, without set-off or
  counterclaim. Any amounts received after such time on any date may, in the
  reasonable discretion of the Administrative Agent, be deemed to have been
  received on the next succeeding Business Day for purposes of calculating
  interest thereon. All such payments shall be made to the Administrative Agent
  at its offices at 270 Park Avenue, New York, New York 10017, except payments
  to be made directly to an Issuing Bank or a Swingline Lender as expressly
  provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17
  and 9.03 shall be made directly to the Persons entitled thereto and payments
  pursuant to other Loan Documents shall be made to the Persons specified
  therein. The Administrative Agent shall distribute any such payments received
  by it for the account of any other Person to the appropriate recipient
  promptly following receipt thereof. If any payment under any Loan Document
  shall be due on a day that is not a Business Day, the date for payment shall
  be extended to the next succeeding Business Day, and, in the case of any
  payment accruing interest, interest thereon shall be payable for the period of
  such extension. All payments under each Loan Document shall be made in
  dollars.

                  (b) If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds
shall be applied (i) first, to payment of interest and fees then due in respect
of Loans, Letters of Credit and Commitments hereunder, ratably among the parties
entitled thereto in accordance with the amounts of interest and fees then due to
such parties and (ii) second, to payment of principal of Loans and unreimbursed
LC Disbursements then due hereunder, ratably among the parties entitled thereto
in accordance with the amounts of principal and unreimbursed LC Disbursements
then due to such parties.

                  (c) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans, Term Loans or participations in LC
Disbursements or Swingline Loans resulting in such

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                                                                              73
Lender receiving payment of a greater proportion of the aggregate amount of its
Revolving Loans, Term Loans or participations in LC Disbursements and Swingline
Loans and accrued interest thereon than the proportion received by any other
Lender, then the Lender receiving such greater proportion shall purchase (for
cash at face value) participations in the Revolving Loans, Term Loans or
participations in LC Disbursements and Swingline Loans of other Lenders to the
extent necessary so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Revolving Loans, Term Loans and
participations in LC Disbursements and Swingline Loans; provided that (i) if any
such participations are purchased and all or any portion of the payment giving
rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest and
(ii) the provisions of this paragraph shall not be construed to apply to any
payment made by the Borrower pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration for
the assignment of or sale of a participation in any of its Loans or
participations in LC Disbursements to any assignee or participant, other than to
the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions
of this paragraph shall apply). The Borrower consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any
Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against the Borrower rights of set-off and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of the
Borrower in the amount of such participation.

                  (d) Unless the Administrative Agent shall have received notice
from the Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or an Issuing Bank hereunder
that the Borrower will not make such payment, the Administrative Agent may
assume that the Borrower has made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders or
such Issuing Bank, as the case may be, the amount due. In such event, if the
Borrower has not in fact made such payment, then each of the Lenders or such
Issuing Bank, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such
Lender or Issuing Bank with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date of payment
to the Administrative Agent, at the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

                  (e) If any Lender shall fail to make any payment required to
be made by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b), 2.18(d) or
9.03(c), then the Administrative Agent may, in its discretion (notwithstanding
any contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender's
obligations under such Sections until all such unsatisfied obligations are fully
paid.

                  SECTION 2.19. Mitigation Obligations; Replacement of Lenders.
  (a) If any Lender requests compensation under Section 2.15, or if the Borrower
  is required to pay any additional amount to any

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                                                                              74

  Lender or any Governmental Authority for the account of any Lender pursuant to
  Section 2.17, then such Lender shall use reasonable efforts to designate a
  different lending office for funding or booking its Loans or Tranche A
  Credit-Linked Deposits hereunder or to assign its rights and obligations
  hereunder to another of its offices, branches or affiliates, if, in the
  judgment of such Lender, such designation or assignment (i) would eliminate or
  reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be,
  in the future and (ii) would not subject such Lender to any unreimbursed cost
  or expense and would not otherwise be disadvantageous to such Lender. The
  Borrower hereby agrees to pay all reasonable costs and expenses incurred by
  any Lender in connection with any such designation or assignment.

                  (b) If any Lender requests compensation under Section 2.15, or
if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.17,
or if any Lender defaults in its obligation to fund Loans or Tranche A
Credit-Linked Deposits hereunder, then the Borrower may, at its sole expense and
effort, upon notice to such Lender and the Administrative Agent, require such
Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in Section 9.04), all its interests, rights and
obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Borrower shall have received the prior
written consent of the Administrative Agent (and, if a Revolving Commitment is
being assigned, each Issuing Bank and Swingline Lender), which consent shall not
unreasonably be withheld, (ii) such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans and participations in LC
Disbursements and Swingline Loans, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Borrower (in
the case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.15 or payments required
to be made pursuant to Section 2.17, such assignment will result in a material
reduction in such compensation or payments. A Lender shall not be required to
make any such assignment and delegation if, prior thereto, as a result of a
waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

                  SECTION 2.20. Credit-Linked Deposit Account. (a) The Tranche A
  Credit-Linked Deposits shall be held by the Administrative Agent in the
  Tranche A Credit-Linked Deposit Account, and no party other than the
  Administrative Agent shall have a right of withdrawal from the Tranche A
  Credit-Linked Deposit Account or any other right or power with respect to the
  Tranche A Credit-Linked Deposits, except as expressly set forth in Section
  2.05, 2.08 or 2.11. Notwithstanding any provision in this Agreement to the
  contrary, the sole funding obligation of each Tranche A Lender in respect of
  its participation in Tranche A Letters of Credit shall be satisfied in full
  upon the funding of its Tranche A Credit-Linked Deposit on the Restatement
  Effective Date.

<PAGE>

                                                                              75

                  (b) Each of the Borrower, the Administrative Agent, each
Issuing Bank issuing any Tranche A Letter of Credit and each Tranche A Lender
hereby acknowledges and agrees that each Tranche A Lender is funding its Tranche
A Credit-Linked Deposit to the Administrative Agent for application in the
manner contemplated by Section 2.05(b) and that the Administrative Agent has
agreed to invest the Tranche A Credit-Linked Deposits so as to earn a return
(except during periods when, and to the extent to which, such Tranche A
Credit-Linked Deposits are used to cover unreimbursed Tranche A LC
Disbursements, and subject to Section 2.14) for the Tranche A Lenders equal to a
rate per annum, reset daily on each Business Day for the period until the next
following Business Day, equal to (i) such day's rate for one month LIBOR
deposits (the "Benchmark LIBOR Rate") minus (ii) 0.10%. Such interest will be
paid to the Tranche A Lenders by the Administrative Agent quarterly in arrears
when Letter of Credit fees are payable pursuant to Section 2.12. In addition to
the foregoing payments by the Administrative Agent, the Borrower agrees to make
payments to the Tranche A Lenders quarterly in arrears when Letter of Credit
fees are payable pursuant to Section 2.12 (and together with the payment of such
fees) in an amount equal to 0.10%.

                  (c) The Borrower shall have no right, title or interest in or
to the Tranche A Credit-Linked Deposits and no obligations with respect thereto
(except for the reimbursement obligations provided in Section 2.05), it being
acknowledged and agreed by the parties hereto that the making of the Tranche A
Credit-Linked Deposits by the Tranche A Lenders, the provisions of this Section
2.20 and the application of the Tranche A Credit-Linked Deposits in the manner
contemplated by Section 2.05(b) constitute agreements among the Administrative
Agent, each Issuing Bank issuing any Tranche A Letter of Credit and each Tranche
A Lender with respect to the funding obligations of each Tranche A Lender in
respect of its participation in Tranche A Letters of Credit and do not
constitute any loan or extension of credit to the Borrower.

                  (d) Subject to the Borrower's compliance with the
cash-collateralization requirements set forth in Section 2.05(b)(viii) the
Administrative Agent shall return any remaining Tranche A Credit-Linked Deposits
to the Tranche A Lenders following the occurrence of the Tranche A Maturity
Date.

                  SECTION 2.21. Incremental Term Loans. At any time prior to the
  Term Loan Maturity Date, the Borrower may, by notice to the Administrative
  Agent, which shall promptly deliver a copy thereof to each of the Lenders (the
  "Incremental Facility Notice"), request the addition of a new tranche of term
  loans hereto (the "Incremental Term Loans"); provided, however, that both (x)
  at the time of any such request and (y) after giving effect to any such
  Incremental Term Loans, no Default shall exist and the Borrower shall be in
  compliance with each Financial Performance Covenant (calculated, in the case
  of clause (y), on a pro forma basis to give effect to any borrowing of
  Incremental Term Loans). The Incremental Term Loans shall (i) be in an
  aggregate principal amount not in excess of $250,000,000 but in no event less
  than $50,000,000, (ii) rank pari passu in right of payment and of security
  with the other Loans (and the Additional Funded LC Facility (if any)), (iii)
  mature and amortize in a manner reasonably acceptable to the Initial Lenders,
  but in any event have an average

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                                                                              76

  weighted life equal to or longer than the Term Loans and mature on a date no
  earlier than the Term Loan Maturity Date, (iv) have such pricing as may be
  agreed by the Borrower and the Persons providing such Incremental Term Loans;
  provided, that the yield with respect to the Incremental Term Loans (taking
  into account upfront fees paid to Incremental Term Loan lenders) may be no
  more than 0.25% per annum greater than the then-current yield with respect to
  the Term Loans and the Additional Funded LC Facility (if any) the time the
  Incremental Facility Amendment (as defined below) becomes effective pursuant
  to its terms (it being understood that the pricing of the Term Loans and/or
  the Additional Funded LC Facility (if any) will be increased and/or additional
  fees will be paid to the Term Lenders or Additional Funded LC Facility lenders
  (if any) to the extent necessary to satisfy such requirement), and (v)
  otherwise be treated hereunder substantially the same as (and in any event no
  more favorably than) the Term Loans (including with respect to the voluntary
  and mandatory prepayment provisions); provided, that the terms and provisions
  applicable to the Incremental Term Loans may provide for financial or other
  covenants different or in addition to those applicable to the Term Loans and
  the Additional Funded LC Facility (if any) only to the extent that such terms
  and provisions are applicable only during periods after the Term Loan Maturity
  Date. The Incremental Facility Notice shall (i) set forth the requested amount
  of Incremental Term Loans, (ii) offer each Lender the opportunity to offer a
  commitment (the "Incremental Commitment") to provide Incremental Term Loans by
  giving written notice of such offered commitment to the Administrative Agent
  and the Borrower prior to the termination of the general syndication of the
  Incremental Term Loans and (iii) be provided to each existing Lender not less
  than five Business Days prior to the commencement of the general syndication
  of the Incremental Term Loans; provided, however, that no existing Lender will
  be obligated to subscribe for any portion of such commitments. At any point
  during or after the expiration of the Incremental Term Loan Offer Period, the
  Borrower shall have the right to arrange for one or more banks or other
  financial institutions (any such bank or other financial institution being
  called an "Additional Term Loan Lender") to extend commitments to provide
  Incremental Term Loans; provided that the Additional Term Loan Lenders shall
  be offered the opportunity to provide the Incremental Term Loans only on terms
  previously offered to the existing Lenders pursuant to the Incremental
  Facility Notice. Each Commitment in respect of Incremental Term Loans shall
  become a Commitment under this Agreement and the facility for the Incremental
  Term Loans shall be implemented hereunder pursuant to an amendment to this
  Agreement (an "Incremental Facility Amendment") executed by each of the
  Borrower, Allied Waste, each other Loan Party, each Lender agreeing to provide
  an Incremental Commitment, if any, each Additional Term Loan Lender, if any,
  and the Administrative Agent, which Incremental Facility Amendment will not
  require the consent of any other Lender. The effectiveness of any Incremental
  Facility Amendment shall (in addition to any other conditions specified
  therein) be subject to the satisfaction on the date thereof and, if different,
  on the date on which the Incremental Term Loans are made, of each of the
  conditions set forth in Section 4.02.

                  SECTION 2.22. Funded Letter of Credit Facility. At any time
  prior to the Term Loan Maturity Date, the Borrower may, by notice to the
  Administrative Agent which shall promptly deliver a copy

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                                                                              77

  thereof to each of the Lenders (the "Additional Funded LC Facility Notice"),
  request the addition of a new pre-funded letter of credit facility (the
  "Additional Funded LC Facility"); provided, however, that both (x) at the time
  of any such request and (y) upon effectiveness of the Additional Funded LC
  Facility Amendment referred to below, no Default shall exist and the Borrower
  shall be in compliance with each Financial Performance Covenant. The
  Additional Funded LC Facility shall (i) be in an aggregate principal amount
  not in excess of $500,000,000 and in no event less than $50,000,000 and (ii)
  have such pricing as may be agreed by the Borrower and the Persons providing
  such Additional Funded LC Facility. The obligations in respect of letters of
  credit issued under the Additional Funded LC Facility shall (i) rank pari
  passu in right of payment and of security with the other Loans (including the
  Incremental Term Loans (if any)), (ii) have such pricing as may be agreed by
  the Borrower and the Persons providing the Additional Funded LC Facility;
  provided, that the yield with respect to the Additional Funded LC Facility
  (taking into account upfront fees paid to Funded LC Facility lenders) may be
  no more than 0.25% per annum greater than the then-current yield with respect
  to the Tranche A Letters of Credit at the time the Additional Funded LC
  Facility Amendment becomes effective pursuant to its terms (it being
  understood that the pricing of the Tranche A Letters of Credit will be
  increased and/or additional fees will be paid to the Tranche A Lenders to the
  extent necessary to satisfy such requirement) and (iii) otherwise be treated
  hereunder substantially the same as (and in any event no more favorably than)
  the Tranche A Letters of Credit. Letters of credit issued under the Additional
  Funded LC Facility shall be used solely to support payment obligations of the
  Borrower and the Subsidiaries in the ordinary course of business. The
  Additional Funded LC Facility Notice shall (i) set forth the requested size of
  the Additional Funded LC Facility, (ii) offer each Lender the opportunity to
  offer a commitment (the "Additional Funded LC Commitment") to provide a
  portion of the Additional Funded LC Facility by giving written notice of such
  offered commitment to the Administrative Agent and the Borrower prior to the
  termination of the general syndication of the Additional Funded LC Facility
  and (iii) be provided to each existing Lender not less than five Business Days
  prior to the commencement of the general syndication of the Additional Funded
  LC Facility; provided, however, that no existing Lender will be obligated to
  subscribe for any portion of such commitments. At any point during or after
  the Additional Funded LC Offer Period, the Borrower shall have the right to
  arrange for one or more banks or other financial institutions (any such bank
  or other financial institution being called an "Additional Funded LC Lender")
  to extend commitments to provide a portion of the Additional Funded LC
  Facility; provided that the Additional Funded LC Lenders shall be offered the
  opportunity to provide a portion of the Additional Funded LC Facility only on
  terms previously offered to the existing Lenders pursuant to the Additional
  Funded LC Facility Notice. Each Commitment in respect of the Additional Funded
  LC Facility shall become a Commitment under this Agreement and the Additional
  Funded LC Facility shall be implemented hereunder pursuant to an amendment to
  this Agreement (an "Additional Funded LC Facility Amendment") executed by each
  of the Borrower, Allied Waste, each other Loan Party, each Lender agreeing to
  provide an Additional Funded LC Commitment, if any, each Additional Funded LC
  Lender, if any, and the Administrative Agent, which Additional Funded LC
  Facility Amendment will not require the consent

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                                                                              78

  of any other Lender. The effectiveness of any Additional Funded LC Facility
  Amendment shall (in addition to any other conditions specified therein) be
  subject to the satisfaction on the date thereof and, if different, on the date
  on which the Additional Funded LC Facility becomes effective, of each of the
  conditions set forth in Section 4.02.

                                  ARTICLE III

                         Representations and Warranties

                  Each of Allied Waste and the Borrower jointly and severally
represents and warrants to the Lenders that:

                  SECTION 3.01. Organization; Powers. Each of Allied Waste, its
  Restricted Subsidiaries and the Securitization Vehicles (a) is a corporation
  duly organized, validly existing and in good standing under the laws of the
  jurisdiction of its organization, (b) has all requisite power and authority to
  own its property and assets and to carry on its business as now conducted, (c)
  is qualified to do business in, and is in good standing in, every jurisdiction
  where such qualification is required, except where the failure so to qualify
  could not, individually or in the aggregate, reasonably be expected to have a
  Material Adverse Effect, and (d) has the corporate power and authority to
  execute, deliver and perform its obligations under each of the Loan Documents
  and each other agreement or instrument contemplated hereby to which it is or
  will be a party and, in the case of the Borrower, to borrow hereunder.

                  SECTION 3.02. Authorization. The execution, delivery and
  performance by each Loan Party and each Person that was a Loan Party
  immediately prior to the Restatement Effective Date (each, a "Predecessor Loan
  Party") of each of the Loan Documents to which such Loan Party is or will be a
  party and the other Transactions:

                  (a) have been duly authorized by all requisite corporate and,
         if required, stockholder action;

                  (b) in the case of Allied Waste and the Borrower, will not (i)
         violate (A) any provision of law, statute, rule or regulation, or of
         its certificate or articles of incorporation or other constitutive
         documents or by-laws, (B) any material order of any Governmental
         Authority or (C) any material provision of any indenture, or other
         Material Agreement or instrument to which Allied Waste or the Borrower
         is a party or by which either of them or any of their property is or
         may be bound, (ii) result in a breach of or constitute (alone or with
         notice or lapse of time or both) a default under, or give rise to any
         right to accelerate or to require the prepayment, repurchase or
         redemption of any obligation under any such indenture or other Material
         Agreement or instrument or (iii) result in the creation or imposition
         of any material Lien upon or with respect to any property or assets now
         owned or hereafter acquired by Allied Waste or the Borrower (other than
         any Lien created hereunder or under the Security Documents); and

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                                                                              79

                  (c) in the case of members of the Allied Group other than
         Allied Waste and the Borrower, will not (i) violate (A) any provision
         of law, statute, rule or regulation, or of its certificate or articles
         of incorporation or other constitutive documents or by-laws, (B) any
         material order of any Governmental Authority or (C) any material
         provision of any indenture or other Material Agreement or instrument to
         which any of them is a party or by which any of them or any of their
         property is or may be bound, (ii) result in a breach of or constitute
         (alone or which notice or lapse of time or both) a default under, or
         give rise to any right to accelerate or to require the prepayment,
         repurchase or redemption of any obligation under any such indenture or
         other Material Agreement or instrument or (iii) result in the creation
         or imposition of any material Lien upon or with respect to any property
         or assets now owned or hereafter acquired by any of them (other than
         any Lien created hereunder or under the Security Documents, in each
         case other than violations, conflicts and breaches referred to in
         clauses (i) and (ii) above that could not, individually or in the
         aggregate, reasonably be expected to have a Material Adverse Effect or
         result in any liability of the Administrative Agent or any Lender.

                  SECTION 3.03. Enforceability. This Agreement has been duly
  executed and delivered by each of Allied Waste and the Borrower and
  constitutes, and each other Loan Document when executed and delivered by each
  Loan Party thereto will constitute, a legal, valid and binding obligation of
  such Loan Party, enforceable against such Loan Party in accordance with its
  terms, except as such enforceability may be limited by applicable bankruptcy,
  insolvency, reorganization, moratorium or similar laws affecting the
  enforcement of creditors' rights generally.

                  SECTION 3.04. Governmental Approvals. Except as could not,
  individually or in the aggregate, reasonably be expected to have a Material
  Adverse Effect, no action, consent or approval of, registration or filing with
  or any other action by any Governmental Authority is or will be required in
  connection with the Transactions, except for (a) the filing of Uniform
  Commercial Code financing statements and other similar filings to perfect the
  interests of the Secured Parties in the Collateral, (b) such as will have been
  made or obtained and will be in full force and effect as of the Restatement
  Effective Date, (c) such as may be required in the ordinary course of business
  in connection with the performance of the obligations of Allied Waste and the
  Borrower hereunder and (d) such as may be required in connection with sales of
  capital stock or other ownership interests under the Security Documents.

                  SECTION 3.05. Financial Statements. (a) Allied Waste has, on
  or prior to the Restatement Effective Date, furnished to the Administrative
  Agent for distribution to the Lenders the Consolidated balance sheet and
  statements of income, stockholders' equity and cash flows of Allied Waste and
  its Restricted Subsidiaries on a Consolidated basis as of and for the fiscal
  year ended December 31, 2002, reported on by PricewaterhouseCoopers LLP,
  independent public accountants. Such financial statements present fairly, in
  all material respects, the financial position and results of operations

<PAGE>
                                                                              80

and cash flows of Allied Waste and its Subsidiaries as of such dates and for
such periods in accordance with GAAP consistently applied.

                  (b) Allied Waste has, on or prior to the Restatement Effective
Date, furnished to the Administrative Agent for distribution to the Lenders (i)
its unaudited pro forma Consolidated balance sheet as of December 31, 2002 and
(ii) projected Consolidated statements of income, stockholders' equity and cash
flows of Allied Waste and its Restricted Subsidiaries (covering the period
ending on December 31, 2010), in each case prepared giving effect to the
Transactions as if the Transactions had occurred as of December 31, 2002. Such
pro forma and projected financial statements have been prepared in good faith by
Allied Waste based on the assumptions and estimates used to prepare the pro
forma and projected financial information in the Confidential Information
Memorandum (which assumptions and estimates are believed by Allied Waste on the
date thereof to be reasonable), is based on the best information available to
Allied Waste after due inquiry and accurately reflects all material adjustments
required to be made to give effect to the Transactions.

                  SECTION 3.06. No Material Adverse Change. Since December 31,
  2002, there has been no material adverse change in the business, condition
  (financial or otherwise), operations, performance or properties of Allied
  Waste and its Subsidiaries, taken as a whole.

                  SECTION 3.07. Title to Properties; Possession Under Leases.
  (a) Each member of the Allied Group has good title to, or valid leasehold
  interests in, all properties and assets which are material to the conduct of
  the business of the Allied Group, taken as a whole, except for defects that
  could not, individually or in the aggregate, reasonably be expected to result
  in a Material Adverse Effect. All such material properties and assets are free
  and clear of Liens, other than Liens expressly permitted by the Loan
  Documents.

                  (b) Schedule 3.07 sets forth the address of each landfill that
is owned or leased by Allied Waste or any of its Restricted Subsidiaries as of
the Restatement Effective Date.

                  (c) As of the Restatement Effective Date, neither Allied Waste
nor any of its Subsidiaries has received notice of, or has knowledge of, any
pending or contemplated condemnation proceeding affecting any landfill or any
sale or disposition thereof in lieu of condemnation. As of the Restatement
Effective Date, except as set forth on Schedule 3.07, neither any landfill nor
any interest therein is subject to any right of first refusal, option or other
contractual right to purchase such landfill or interest therein.

                  (d) Each member of the Allied Group has complied with all
obligations under all leases which are material to the Allied Group, taken as a
whole, to which it is a party and all such leases are in full force and effect,
except where failure to do so or failure of such leases to be in full force and
effect could not individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect. Each member of the Allied Group enjoys peaceful
and undisturbed possession under all such material leases, except where failure
to do so could not reasonably be expected to have a Material Adverse Effect.

<PAGE>
                                                                              81

                     SECTION 3.08. Subsidiaries; Other Equity Investments. (a)
  Part (a) of Schedule 3.08 sets forth as of the Restatement Effective Date a
  list of all Subsidiaries. Each such Subsidiary is a wholly owned Subsidiary
  except as otherwise indicated on Schedule 3.08. The shares of capital stock or
  other ownership interests issued by the Borrower and the other Subsidiaries
  and owned by members of the Allied Group are fully paid and non-assessable and
  are owned by Allied Waste, directly or indirectly, free and clear of all Liens
  (other than Liens permitted by the Loan Documents).

                  (b) Part (b) of Schedule 3.08 sets forth as of the Restatement
Effective Date a list of all equity Investments (other than equity Investments
in Subsidiaries referred to in Part (a) of Schedule 3.08) held by Allied Waste
or any of its subsidiaries in any Person, and, for each such Investment (i) the
identity of the Person or Persons holding such Investment and (ii) the nature of
such Investment.

                  SECTION 3.09. Litigation; Compliance with Laws. (a) Except as
  set forth on Schedule 3.09, there are no actions, suits or proceedings at law
  or in equity or by or before any Governmental Authority now pending or, to the
  knowledge of Allied Waste or the Borrower, threatened against or affecting any
  member of the Allied Group or any business, property or rights of any such
  member (i) that involve any Loan Document or any of the Transactions or (ii)
  as to which there is a reasonable likelihood of an adverse determination and
  that, if adversely determined, could reasonably be expected, individually or
  in the aggregate, to have a Material Adverse Effect.

                  (b) No member of the Allied Group or any of their respective
material properties or assets is in violation of, nor will the continued
operation of their material properties and assets as currently conducted
violate, any law, rule or regulation (including any Environmental Law, or, to
the knowledge of Allied Waste or the Borrower any zoning, building ordinance,
code or approval or any building permits), or is in default with respect to any
judgment, writ, injunction, decree or order of any Governmental Authority, where
such violation or default could, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

                  SECTION 3.10. Agreements. No member of the Allied Group is in
  default in any manner under any provision of any indenture or other agreement
  or instrument evidencing Indebtedness, or any other Material Agreement to
  which it is a party or by which it or any of its properties or assets are or
  may be bound, where such default could, individually or in the aggregate,
  reasonably be expected to have a Material Adverse Effect.

                  SECTION 3.11. Federal Reserve Regulations. (a) No member of
  the Allied Group is engaged principally, or as one of its important
  activities, in the business of extending credit for the purpose of buying or
  carrying Margin Stock.

                  (b) No part of the proceeds of any Loan or any Letter of
Credit will be used by any member of the Allied Group, whether directly or
indirectly, and whether immediately, incidentally or ultimately, for

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                                                                              82

any purpose that entails a violation of, or that is inconsistent with, the
provisions of Regulations U or X of the Board.

                  SECTION 3.12. Investment Company Act; Public Utility Holding
  Company Act. No member of the Allied Group is (a) an "investment company" as
  defined in, or subject to regulation under, the Investment Company Act of 1940
  or (b) a "holding company" as defined in, or subject to regulation under, the
  Public Utility Holding Company Act of 1935.

                  SECTION 3.13. Tax Returns. Each of Allied Waste and its
  Subsidiaries has timely filed or caused to be filed all Tax returns,
  extensions or materials required to have been filed by it (other than those
  not yet delinquent) and has paid or caused to be paid all Taxes due and
  payable by it and all assessments received by it, except (a) any Taxes and
  assessments that are being contested in good faith by appropriate proceedings
  and for which such member shall have set aside on its books adequate reserves
  in accordance with GAAP or (b) to the extent that the failure to do so could
  not, individually or in the aggregate, after giving effect to the
  Transactions, reasonably be expected to result in a Material Adverse Effect.

                  SECTION 3.14. No Material Misstatements. To the knowledge of
  the Loan Parties, on or prior to the Restatement Effective Date, none of (a)
  the Confidential Information Memorandum or (b) any other information, report,
  financial statement, exhibit or schedule furnished by or on behalf of Allied
  Waste and its Restricted Subsidiaries to the Administrative Agent or any
  Lender in connection with the negotiation of any Loan Document or included
  therein or delivered pursuant thereto, when taken as a whole, contains any
  material misstatement of fact or omits to state any material fact necessary to
  make the statements therein, as of the date of such statements and in the
  light of the circumstances under which they were made, not misleading;
  provided that to the extent any such information, report, financial statement,
  exhibit or schedule was based upon or constitutes a forecast, projection or
  expressions of opinion, each of Allied Waste and its Subsidiaries represents
  only that (i) it acted in good faith and utilized assumptions believed to be
  reasonable at the time and due care in the preparation of such information,
  report, financial statement, exhibit or schedule and (ii) nothing has come to
  its attention which would cause them not to so believe.

                  SECTION 3.15. Employee Benefit Plans. Except as set forth on
  Schedule 3.15, each of the Borrower and its ERISA Affiliates is in compliance
  in all material respects with the applicable provisions of ERISA and the Code
  and the regulations and published interpretations thereunder, except for such
  non-compliance as could not, individually or in the aggregate, reasonably be
  expected to have a Material Adverse Effect. Except as set forth on Schedule
  3.15, no ERISA Event has occurred and is outstanding or is reasonably expected
  to occur that, when taken together with all other such outstanding ERISA
  Events, could, individually or in the aggregate, reasonably be expected to
  result in material liability of the Borrower or any of its ERISA Affiliates,
  except where such liability could not reasonably be expected to have to a
  Material Adverse Effect.

<PAGE>

                                                                              83

  The present value of all benefit liabilities under each Plan (based on those
  assumptions used to fund such Plan) did not, as of the last annual valuation
  date applicable thereto, exceed by more than $25,000,000 the fair market value
  of the assets of such Plan, and the aggregate present value of all benefit
  liabilities of all underfunded Plans (based on those assumptions used to fund
  each such Plan) did not, as of the last annual valuation dates applicable
  thereto, exceed by more than $25,000,000 the aggregate fair market value of
  the assets of all such underfunded Plans.

                  SECTION 3.16. Environmental Matters. Except as set forth on
  Schedule 3.16:

                  (a) the facilities and properties owned, leased or operated by
         each member of the Allied Group (the "Properties") do not contain and
         to the Borrower's best knowledge (actual or constructive) have not
         previously contained, any Hazardous Materials in amounts or
         concentrations which (i) constitute, or constituted a violation of,
         (ii) require remedial action under, or (iii) could give rise to
         liability under, Environmental Laws, which violations, remedial actions
         and liabilities, individually or in the aggregate, could reasonably be
         expected to have a Material Adverse Effect;

                  (b) the Properties and all operations of each member of the
         Allied Group are in compliance, and in the last five years have been in
         compliance, with all Environmental Laws and Environmental Permits, and
         all necessary Environmental Permits have been obtained and are in
         effect, except to the extent that such non-compliance or failure to
         obtain any such Environmental Permits, individually or in the
         aggregate, could not reasonably be expected to have a Material Adverse
         Effect;

                  (c) there have been no Releases or threatened Releases at,
         from, under or proximate to the Properties or properties formerly
         owned, leased or operated by any member of the Allied Group (the
         "Former Properties") or otherwise in connection with the operations of
         any member of the Allied Group, which Releases or threatened Releases,
         individually or in the aggregate, could reasonably be expected to have
         a Material Adverse Effect;

                  (d) no member of the Allied Group has received any notice of
         an Environmental Claim in connection with the Properties or Former
         Properties or the operations of any member of the Allied Group or with
         regard to any Person whose liabilities arising under Environmental Law
         any member of the Allied Group has retained or assumed, in whole or in
         part, contractually, by operation of law or otherwise, which,
         individually or in the aggregate, could reasonably be expected to have
         a Material Adverse Effect; and

                  (e) Hazardous Materials have not been transported from the
         Properties or Former Properties, nor have Hazardous Materials been
         generated, treated, stored or disposed of at, on or under any of the
         Properties or Former Properties in violation of any Environmental Law,
         nor has any member of the Allied Group

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                                                                              84

         retained or assumed any liability, contractually, by operation of law
         or otherwise, with respect to the generation, treatment, storage or
         disposal of Hazardous Materials, which transportation, generation,
         treatment, storage or disposal, or retained or assumed liabilities,
         individually or in the aggregate, could reasonably be expected to have
         a Material Adverse Effect.

                  SECTION 3.17. Insurance. Schedule 3.17 sets forth a true,
  complete and correct description of all material insurance maintained by
  Allied Waste and the Borrower (including insurance maintained by Allied Waste
  or the Borrower for any Subsidiary) as of the Restatement Effective Date. As
  of the Restatement Effective Date, such insurance is in full force and effect
  and all premiums which have become due and payable have been fully paid. The
  Allied Group maintains insurance in such amounts and covering such risks and
  liabilities as are in accordance with normal industry practice.

                  SECTION 3.18. Labor Matters. Except as disclosed in the
  periodic reports of Allied Waste most recently filed under the Securities
  Exchange Act of 1934 prior to the Restatement Effective Date, as of the
  Restatement Effective Date, there are no strikes, lockouts or slowdowns
  against any member of the Allied Group pending or, to the knowledge of Allied
  Waste or the Borrower, threatened, which, individually or in the aggregate,
  could reasonably be expected to have a Material Adverse Effect. The hours
  worked by and payments made to employees of the Allied Group do not violate
  the Fair Labor Standards Act or any other applicable Federal, state, local or
  foreign law dealing with such matters, in a manner which, individually or in
  the aggregate, could reasonably be expected to have a Material Adverse Effect.
  All payments due from members of the Allied Group, or for which any claim may
  be made against any member of the Allied Group, on account of wages and
  employee health and welfare insurance and other benefits, have been paid or
  accrued as a liability on the books of such member, except where the failure
  to do so, individually or in the aggregate, could not reasonably be expected
  to have a Material Adverse Effect.

                  SECTION 3.19. Solvency. Immediately after the consummation of
  the Transactions to occur on the Restatement Effective Date and immediately
  following the making of each Loan and after giving effect to the application
  of the proceeds thereof, and taking into account all rights of indemnity,
  subrogation and contribution of the Loan Parties under applicable law and the
  Indemnity, Contribution and Subrogation Agreement, each Material Loan Party is
  and will be Solvent.

                  SECTION 3.20. Intellectual Property. Each member of the Allied
  Group owns, or has valid rights to use, all Intellectual Property necessary
  for the conduct of its business as currently conducted, except for any failure
  to so own or license Intellectual Property which, individually or in the
  aggregate, could not reasonably be expected to have a Material Adverse Effect.
  To the knowledge of Allied Waste and the Borrower, no claim has been asserted
  and is pending against any member of the Allied Group challenging or
  questioning the use of any Intellectual Property by them or the validity or
  effectiveness of any Intellectual Property used by them,

<PAGE>

                                                                              85

  except for any claims, which, individually or in the aggregate, could not
  reasonably be expected to have a Material Adverse Effect. To the knowledge of
  Allied Waste and the Borrower, the use of Intellectual Property by the members
  of the Allied Group does not infringe on the rights of any Person in any
  material respect and in any manner which could, individually or in the
  aggregate, reasonably be expected to have a Material Adverse Effect.

                  SECTION 3.21. Senior Indebtedness. The Obligations constitute
  "Senior Indebtedness" under and as defined in the 10% Note Documents.

                  SECTION 3.22. Security Interests. (a) Each of the Non-Shared
  Collateral Pledge Agreement and the Shared Collateral Pledge Agreement is
  effective to create in favor of the Collateral Agent and the Collateral
  Trustee, respectively, for the ratable benefit of the Secured Parties and the
  Shared Collateral Secured Parties, respectively, a valid and enforceable
  security interest in the "Collateral" (as defined in the Non-Shared Collateral
  Pledge Agreement) and the "Collateral" (as defined in the Shared Collateral
  Pledge Agreement), respectively, and, when the portion of the Collateral
  constituting certificated securities (as defined in the Uniform Commercial
  Code) is delivered to the Collateral Agent thereunder, such security interest
  shall constitute a fully perfected first priority Lien on, and security
  interest in, all right, title and interest of the pledgors thereunder in such
  Collateral, in each case prior and superior in right to any other Person.

                  (b) Each of the Non-Shared Collateral Security Agreement and
the Shared Collateral Security Agreement is effective to create in favor of the
Collateral Agent and the Collateral Trustee, respectively, for the ratable
benefit of the Secured Parties and the Shared Collateral Secured Parties,
respectively, a legal, valid and enforceable security interest in the
"Collateral" (as defined in the Non-Shared Collateral Security Agreement) and
the "Collateral" (as defined in the Shared Collateral Security Agreement),
respectively, and, when financing statements in appropriate form are filed in
the offices specified on Schedule D to each of the Perfection Certificates, such
security interest shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the grantors thereunder in such
Collateral, to the extent perfection can be obtained by filing Uniform
Commercial Code financing statements, other than the Intellectual Property, in
which a security interest may be perfected by filing, recording or registering a
security agreement, financing statement or analogous document in the United
States Patent and Trademark Office or the United States Copyright Office, as
applicable, in each case prior and superior in right to any other Person to the
extent perfection can be obtained by filing Uniform Commercial Code financing
statements, other than with respect to the rights of Persons pursuant to Liens
expressly permitted by Section 6.02.

                  (c) The security interest created under each of the Non-Shared
Collateral Security Agreement and the Shared Collateral Security Agreement
constitutes a fully perfected Lien on, and security interest in, all right,
title and interest of the Loan Parties in the Intellectual Property in which a
security interest may be perfected by

<PAGE>

                                                                              86

filing, recording or registering a security agreement, financing statement or
analogous document in the United States Patent and Trademark Office or the
United States Copyright Office, as applicable, in each case prior and superior
in right to any other Person, other than with respect to the rights of Persons
pursuant to Liens expressly permitted by Section 6.02 (it being understood that
subsequent recordings in the United States Patent and Trademark Office and the
United States Copyright Office may be necessary to perfect a lien on registered
trademarks, trademark applications and copyrights acquired or registered by the
Loan Parties after the Restatement Effective Date).

                                   ARTICLE IV

                                   Conditions

                  SECTION 4.01. Restatement Effective Date. Without affecting
  the rights of Allied Waste or any Restricted Subsidiary hereunder at all times
  prior to the Restatement Effective Date, the amendment and restatement of the
  Original Credit Agreement in the form hereof and obligations of the Lenders to
  make Loans and acquire participations in Letters of Credit, the obligations of
  Tranche A Lenders to fund their Tranche A Credit-Linked Deposits and the
  obligations of an Issuing Bank to issue Letters of Credit hereunder shall
  become effective on the date on which each of the following conditions is
  satisfied (or waived in accordance with Section 9.02):

                  (a) The following documents, each dated the Restatement
Effective Date (unless otherwise specified) are received by the Administrative
Agent in form and substance satisfactory to the Initial Lenders:

                  (i) for Allied Waste, the Borrower and each other Material
         Loan Party, a copy of the organizational documents, as amended and in
         effect, of such Material Loan Party certified (as of a date reasonably
         close to the Restatement Effective Date) by the Secretary of State of
         the jurisdiction of organization of such Material Loan Party; a
         certificate from such Secretary of State dated as of a date reasonably
         close to the Restatement Effective Date as to the good standing of and
         organizational documents filed by such Material Loan Party; and
         evidence from each Material Loan Party that it is qualified to do
         business in each jurisdiction where such qualification is required and
         where the failure so to qualify could, individually or in the
         aggregate, reasonably be expected to have a Material Adverse Effect;

                  (ii) for each of Allied Waste, the Borrower and each other
         Material Loan Party, a certificate of the Secretary or an Assistant
         Secretary of such Material Loan Party, dated the Restatement Effective
         Date and certifying (A) that attached thereto is a true and complete
         copy of the by-laws (or operating or partnership agreement, where
         applicable) of such Material Loan Party as amended and in effect at all
         times from the date on which the resolutions referred to in clause (B)
         were adopted to and including the date of such certificate, (B) that
         attached thereto is a true and complete copy of resolutions (or consent
         by members or partners, where applicable, to the extent required)

<PAGE>

                                                                              87

         duly adopted by the board of directors (or members or partners, where
         applicable) of such Material Loan Party authorizing the execution,
         delivery and performance of such of the Loan Documents to which such
         Material Loan Party is or is intended to be a party and the extensions
         of credit hereunder, and that such resolutions (or consent by members
         or partners, where applicable, to the extent required) have not been
         modified, rescinded or amended and are in full force and effect, (C)
         that the organizational documents of such Material Loan Party have not
         been amended since the date of the certification thereto furnished
         pursuant to clause (i) above, and (D) as to the incumbency and specimen
         signature of each officer (or member or partner, where applicable) of
         such Material Loan Party executing such of the Loan Documents to which
         such Material Loan Party is intended to be a party and each other
         document to be delivered by such Material Loan Party from time to time
         in connection therewith (and the Administrative Agent and each Lender
         may conclusively rely on such certificate until it receives notice to
         the contrary in writing from such Material Loan Party); and

                  (iii) for each Material Loan Party, a certificate of another
         officer (or member or partner, where applicable) of such Material Loan
         Party, dated the Restatement Effective Date, as to the incumbency and
         specimen signature of the Secretary or Assistant Secretary, as the case
         may be, of such Material Loan Party;

                  (b) The Administrative Agent shall have received the Security
Documents duly executed by each of the intended parties thereto, together with:

                  (i) such appropriately completed copies of Uniform Commercial
         Code financing statements as the Administrative Agent or any Lender
         shall have requested covering the Collateral described therein;

                  (ii) documents for recordation and filing of or with respect
         to such Security Documents that the Administrative Agent or any Lender
         may deem reasonably necessary or desirable in order to perfect the
         Liens created thereby;

                  (iii) the stock certificates, if any, required to be delivered
         pursuant to such Security Documents with respect to each Material Loan
         Party, each accompanied by undated stock powers executed in blank;

                  (iv) completed Perfection Certificates dated the Restatement
         Effective Date and signed by an executive officer of the Borrower or a
         Financial Officer, together with all attachments contemplated thereby.

                  (c) The Administrative Agent shall have received a legal
opinion of (i) Latham & Watkins LLP, special counsel for the Loan Parties, in
substantially the form of
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                                                                              88

Exhibit K-1 and otherwise reasonably satisfactory to the Initial Lenders and
(ii) Steven M. Helm, General Counsel of Allied Waste, in substantially the form
of Exhibit K-2 and otherwise reasonably satisfactory to the Initial Lenders;

                  (d) The Initial Lenders shall have received a certificate of a
Financial Officer to the effect that:

                           (x) the representations and warranties (other than
                  the representation and warranty contained in Section 3.06) are
                  true and correct in all material respects on and as of the
                  Restatement Effective Date or, if any such representation or
                  warranty is expressly stated to have been made as of a
                  specific date, as of such specific date (except, in the case
                  of representations and warranties relating to the business,
                  operations or condition of Allied Waste and its Subsidiaries,
                  to the extent any such failures to be true and correct,
                  individually or in the aggregate, could not, individually or
                  in the aggregate, reasonably be expected to result in a
                  Material Adverse Effect); and

                           (y) no event has occurred and is continuing that
                  constitutes a Default or an Event of Default.

                  (e) The Administrative Agent shall have received evidence of
the existence of all insurance required to be maintained by Allied Waste and its
Restricted Subsidiaries hereunder, together with evidence that the Collateral
Agent on behalf of the Secured Parties or Shared Collateral Secured Parties is
an additional insured or loss payee (in each case, to the extent required under
Section 5.02).

                  (f) The Administrative Agent shall have received the results
of a recent lien search in each of the jurisdictions requested by the
Administrative Agent, and such searches shall reveal no Liens on any of the
assets of any Loan Party except for Liens permitted by Section 6.02.

                  (g) The Administrative Agent shall have received evidence that
the Borrower shall have paid all fees required to be paid, and all reasonable
expenses for which invoices have been presented, on or before the Restatement
Effective Date (including, without limitation, the reasonable fees and expenses
of a single New York counsel and a single local counsel in each applicable
jurisdiction to the Administrative Agent and the Initial Lenders).

                  (h) The Administrative Agent shall have received evidence that
the Borrower shall have repaid (or is simultaneously repaying) all Loans or
other amounts outstanding under the Original Credit Agreement on the Restatement
Effective Date (other than Existing Letters of Credit), and that any breakage or
indemnity payments in connection with such repayment, to the extent invoiced
pursuant to the terms of the Original Credit Agreement, have been (or are
simultaneously being) paid.

                  (i) All requisite material governmental authorities shall have
approved or consented to the Transactions (except to the extent the failure to
obtain any such approvals or consents could not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect) and
there shall be no governmental or judicial action,
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                                                                            89

actual or threatened, that has or could have a reasonable likelihood of
restraining, preventing or imposing burdensome conditions (except as previously
disclosed to the Initial Lenders) that could, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect. The
Administrative Agent shall have received a certificate of an executive officer
of the Borrower confirming that all material governmental consents and approvals
required in connection with the Transactions have been received, except such
consents and approvals that, if not obtained, could not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect.

                  (j) The Senior Note Offering shall have been consummated in
accordance with applicable law and the Borrower shall have received therefrom
aggregate gross cash proceeds of not less than $250,000,000. The material terms
and conditions of the 2003 Senior Notes and the provisions of the indenture and
other agreements and documents executed and delivered in connection with the
Senior Note Offering shall be reasonably satisfactory to the Initial Lenders,
each of whom shall have received copies of all such documents, certified by a
Financial Officer as being complete and correct in all material respects.

                  (k) The Equity Offerings shall have been consummated in
accordance with applicable law and Allied Waste shall have received therefrom
aggregate gross cash proceeds of not less than $350,000,000. The material terms
and conditions of each of the Common Equity Offering, the Mandatory Convertible
Offering and the securities issued in connection therewith and the provisions of
the agreements and documents executed in connection with each of the Common
Equity Offering and the Mandatory Convertible Offering shall be reasonably
satisfactory to the Initial Lenders, and each of the Initial Lenders shall have
received copies of all such agreements and documents, certified by a Financial
Officer as being complete and correct in all material respects.

                  (l) The Lenders shall be reasonably satisfied with (i) the
material terms and conditions of all agreements and documents executed and
delivered in connection with the other Transactions (to the extent consummated
on or before the Restatement Effective Date), (ii) the capitalization, structure
and equity ownership of Allied Waste and its subsidiaries after giving effect to
the Transactions and (iii) all material legal, accounting, tax and other matters
relating to the Transactions.

                  (m) Immediately after giving effect to the Transactions and
the other transactions contemplated by this Agreement to occur on the
Restatement Effective Date, Allied Waste and its Restricted Subsidiaries shall
have outstanding no Indebtedness or preferred stock other than (a) Indebtedness
outstanding under this Agreement, (b) the 2003 Senior Notes and (c) Indebtedness
and preferred stock set forth on Schedule 6.01.

                  (n) The Lenders shall have received a detailed financial model
of Allied Waste and its Restricted Subsidiaries, broken down by quarters, for
the years 2003 through 2010 in form and substance reasonably satisfactory to the
Initial Lenders.

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                                                                              90

                  (o) The Lenders shall have received the pro forma consolidated
balance sheet of Allied Waste referred to in Section 3.05(b), and such pro forma
consolidated balance sheet shall be consistent in all material respects with the
forecasts and other information previously provided to the Lenders. The
Administrative Agent shall have received a certificate of a Financial Officer to
the effect that such pro forma consolidated balance sheet fairly presents, in
all material respects, the pro forma financial position of Allied Waste and its
Subsidiaries in accordance with GAAP.

                  (p) There shall be no material litigation against any member
of the Allied Group or defaults under any provision of any indenture or other
agreement or instrument evidencing Indebtedness, or any other Material Agreement
to which any member of the Allied Group is a party or by which it or any of its
properties or assets are or may be bound, which could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect.

The Administrative Agent shall notify Allied Waste, the Borrower and the Lenders
of the Restatement Effective Date, and such notice shall be conclusive and
binding. Notwithstanding the foregoing, the obligations of the Lenders to make
Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not
become effective unless each of the foregoing conditions is satisfied (or waived
pursuant to Section 9.02) at or prior to 3:00 p.m., New York City time, on June
30, 2003 (and, in the event such conditions are not so satisfied or waived, the
Commitments shall terminate at such time). It is understood and agreed that no
term of the amendment and restatement contemplated hereby shall be effective
until the Restatement Effective Date occurs, and that this Agreement and the
Predecessor Security Documents shall continue in full force and effect in the
form applicable prior to the amendment and restatement contemplated hereby until
the Restatement Effective Date.

                  SECTION 4.02. Each Credit Event. The obligation of each
  Revolving Lender to make a Revolving Loan on the occasion of any Borrowing
  after the Restatement Effective Date, and of each Issuing Bank to issue,
  amend, renew or extend any Letter of Credit after the Restatement Effective
  Date, is subject to receipt of the request therefor in accordance herewith and
  to the satisfaction of the following conditions (each Borrowing and each
  issuance, amendment, renewal or extension of a Letter of Credit shall be
  deemed to constitute a representation and warranty by Allied Waste and the
  Borrower on the date thereof as to the matters specified in paragraphs (a) and
  (b) of this Section):

                  (a) the representations and warranties contained in each Loan
         Document are correct in all material respects on and as of the date of
         such Borrowing or issuance, before and after giving effect to such
         Borrowing or issuance and to the application of the proceeds therefrom,
         as though made on and as of such date (or, if any such representation
         or warranty is expressly stated to have been made as of a specific
         date, as of such specific date); and

                  (b) no event has occurred and is continuing, or would result
         from such Borrowing or issuance or from the application of

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                                                                              91

the proceeds therefrom, that constitutes a Default or an Event of Default.

                 SECTION 4.03. Determinations Under Section 4.01. For purposes
  of determining compliance with the conditions specified in Section 4.01, each
  Lender shall be deemed to have consented to, approved or accepted or to be
  satisfied with each document or other matter required thereunder to be
  consented to or approved by or acceptable or satisfactory to the Lenders
  unless an officer of the Administrative Agent responsible for the transactions
  contemplated by the Loan Documents shall have received written notice from
  such Lender prior to the Restatement Effective Date specifying its objection
  thereto and such Lender shall not have made available to the Administrative
  Agent such Lender's ratable portion of the Borrowings made on the Restatement
  Effective Date.

                                   ARTICLE V

                              Affirmative Covenants

                  Until the Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable to Lenders and
Issuing Banks hereunder shall have been paid in full and all Letters of Credit
shall have expired or terminated and all LC Disbursements shall have been
reimbursed, each of Allied Waste and the Borrower covenants and agrees with the
Lenders that:

                  SECTION 5.01. Existence; Businesses and Properties. It will,
  and will cause each of its Restricted Subsidiaries to:

                  (a) Do or cause to be done all things necessary to preserve,
         renew and keep in full force and effect its legal existence, except as
         otherwise expressly permitted under Section 6.06 and except for
         failures by Restricted Subsidiaries to do so which could not,
         individually or in the aggregate, reasonably be expected to have a
         Material Adverse Effect.

                  (b) Do or cause to be done all things necessary to obtain,
         preserve, or renew licenses, permits, franchises, authorizations,
         patents, copyrights, trademarks and trade names material to the conduct
         of the business of Allied Waste and its Restricted Subsidiaries, taken
         as a whole; maintain and operate such business in substantially the
         manner in which it is presently conducted and operated (provided that
         nothing set forth in this Section 5.01(b) shall in any way limit the
         ability of Allied Waste and its Restricted Subsidiaries to consummate
         any acquisition or disposition permitted under this Agreement or
         otherwise make changes in the conduct of their business not prohibited
         by Section 6.10); comply with all applicable laws, rules, regulations
         and decrees and orders of any Governmental Authority, whether now in
         effect or hereafter enacted, except for failures to comply which could
         not, individually or in the aggregate, reasonably be expected to have a
         Material Adverse Effect; and at all times maintain and preserve all
         property material to the conduct of such business and keep such
         property in good repair, working order and condition and from time to
         time

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                                                                              92
         make, or cause to be made, all needful and proper repairs,
         renewals, additions, improvements and replacements thereto necessary in
         order that the business carried on in connection therewith may be
         properly conducted at all times, except for failures to maintain and
         preserve property that could not, individually or in the aggregate,
         reasonably be expected to have a Material Adverse Effect.

                  SECTION 5.02. Insurance. It will, and will cause each of its
  Restricted Subsidiaries to:

                  (a) Keep its insurable properties adequately insured at all
         times by financially sound and reputable insurers, or by way of
         adequate self-insurance; maintain such other insurance or
         self-insurance, to such extent and against such risks, including fire
         and other risks insured against by extended coverage, as is customary
         with companies in the same or similar businesses operating in the same
         or similar locations, including public liability insurance or
         self-insurance against claims for personal injury or death or property
         damage occurring upon, in, about or in connection with the use of any
         properties owned, occupied or controlled by it; and maintain such other
         insurance or self-insurance as may be required by law. All insurance
         policies may provide for reasonable deductible amounts.

                  (b) Cause all such policies to be endorsed or amended to
         include a "standard" or "New York" lender's loss payable endorsement,
         in form and substance reasonably satisfactory to the Administrative
         Agent, which endorsement shall provide that, from and after the
         Restatement Effective Date, if the insurance carrier shall have
         received written notice from the Administrative Agent of the occurrence
         of an Event of Default, the insurance carrier shall pay all proceeds
         otherwise payable to any member of the Allied Group under such policies
         directly to the Administrative Agent; and deliver original or certified
         copies of all such policies to the Administrative Agent.

                  (c) If any separate or additional property, casualty or
         "umbrella" insurance policy is known by a Responsible Officer to have
         been obtained by any member of the Allied Group, notify the
         Administrative Agent thereof promptly, and promptly deliver to the
         Administrative Agent a duplicate original copy of such policy.

                  SECTION 5.03. Obligations and Taxes. It will, and will cause
  each of its Subsidiaries to, pay its Indebtedness and other obligations
  promptly and in accordance with their terms and pay and discharge promptly
  when due all Taxes, assessments and governmental charges or levies imposed
  upon it or upon its income or profits or in respect of its property, before
  the same shall become delinquent or in default, as well as all lawful claims
  for labor, materials and supplies or otherwise that, if unpaid, might give
  rise to a Lien upon such properties or any part thereof; provided that (x)
  such payment of Indebtedness or claims for labor, material or supplies shall
  not be required pursuant to this Section 5.03 to the extent failure to so pay
  could not, individually or in the aggregate, reasonably be expected to

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                                                                              93

  have a Material Adverse Effect; and (y) such payment and discharge shall not
  be required with respect to any such Tax, assessment, charge, levy or claim so
  long as either (i) the validity or amount thereof shall be contested in good
  faith by appropriate proceedings and Allied Waste or the relevant Subsidiary
  shall have set aside on its books adequate reserves with respect thereto in
  accordance with GAAP and such contest operates to suspend collection of the
  contested obligation, Tax, assessment or charge and enforcement of a Lien or
  (ii) such amount not so paid or discharged is less than $50,000,000 in the
  aggregate.

                  SECTION 5.04. Financial Statements, Reports, Etc. Allied Waste
  shall furnish to the Administrative Agent (and the Administrative Agent shall
  furnish to each Lender):

                  (a) within ten days after the filing with the Securities and
         Exchange Commission of Allied Waste's Annual Report on Form 10-K with
         respect to each fiscal year (and in any event within 105 days after the
         end of such fiscal year), (x) its Consolidated balance sheet and
         related statements of operations, stockholders' equity and cash flows
         showing the financial condition of Allied Waste and its Restricted
         Subsidiaries as of the close of such fiscal year and the results of its
         operations and the operations of such Restricted Subsidiaries during
         such year, all audited by PricewaterhouseCoopers LLP or other
         independent public accountants of recognized national standing
         acceptable to the Administrative Agent and accompanied by an opinion of
         such accountants (which shall not be qualified in any material respect)
         to the effect that such Consolidated financial statements fairly
         present the financial condition and results of operations of Allied
         Waste and its Restricted Subsidiaries on a Consolidated basis in
         accordance with GAAP (it being understood that such financial
         statements and opinion may be delivered, if included therein, in the
         form of such Annual Report on Form 10-K and any related Annual Report
         to Stockholders); and (y) a calculation of the Leverage Ratio and
         Interest Coverage Ratio as at the last day of and for such fiscal year;

                  (b) within seven days after the filing with the Securities and
         Exchange Commission of Allied Waste's Quarterly Report on Form 10-Q
         with respect to each of the first three fiscal quarters of each fiscal
         year (and in any event within 60 days after the end of each such fiscal
         quarter), (x) its Consolidated balance sheet and related statements of
         operations, stockholders' equity and cash flows showing the financial
         condition of Allied Waste and its Restricted Subsidiaries as of the
         close of such fiscal quarter and the results of its operations and the
         operations of such Restricted Subsidiaries during such fiscal quarter
         and the then elapsed portion of the fiscal year, all certified by one
         of its Financial Officers as fairly presenting the financial condition
         and results of operations of Allied Waste and its Restricted
         Subsidiaries on a Consolidated basis in accordance with GAAP, subject
         to normal year-end audit adjustments and lack of footnote disclosures
         (it being understood that such financial statements may be delivered,
         if included therein, in the form of such Quarterly Report on Form
         10-Q); and (y) a calculation of the

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                                                                              94

         Leverage Ratio and the Interest Coverage Ratio as at the last day of
         such fiscal quarter and for the Rolling Period then ended;

                  (c) concurrently with any delivery of financial statements
         under paragraph (a) or (b) above, a certificate of the accounting firm
         or Financial Officer opining on or certifying such statements (which
         certificate, when furnished by an accounting firm, may be limited to
         accounting matters and disclaim responsibility for legal
         interpretations) (i) certifying that in making its examination in
         connection with rendering such opinion or certificate with respect to
         such statements, such Person has not obtained knowledge that an Event
         of Default or, if such certificate is of a Financial Officer, a Default
         has occurred or, if such Financial Officer has obtained knowledge that
         an Event of Default or, if such certificate is of a Financial Officer,
         Default has occurred, specifying the nature and extent thereof and any
         corrective action taken or proposed to be taken with respect thereto,
         (ii) setting forth computations in reasonable detail satisfactory to
         the Administrative Agent demonstrating compliance with the covenants
         contained in Sections 6.04, 6.05, 6.06, 6.08, 6.13, 6.14 and 6.15 and
         (iii) identifying in reasonable detail, and setting forth the amounts
         of, all Designated Excess Cash Expenditures made during the periods
         covered by such financial statements;

                  (d) promptly after the same become publicly available, copies
         of all periodic and other reports, proxy statements and other materials
         filed by any member of the Allied Group with the Securities and
         Exchange Commission, or any Governmental Authority succeeding to any or
         all of the functions of said Commission, or with any national
         securities exchange, or distributed to its shareholders, as the case
         may be;

                  (e) at the time required for delivery of financial statements
         pursuant to paragraph (a) or (b) of this Section, (x) a report in form
         and substance reasonably satisfactory to the Administrative Agent of
         all Permitted Acquisitions consummated during the most recent fiscal
         quarter covered by such financial statements, which report shall
         identify, inter alia, each Permitted Acquisition having total
         Acquisition Consideration of $25,000,000 or more (a "Large
         Acquisition") and, for each Large Acquisition, a description of the
         total Acquisition Consideration therefor; and (y) a list of all
         entities that became or ceased to be Domestic Subsidiaries of Allied
         Waste during such fiscal quarter;

                  (f) promptly from time to time, such other information
         regarding the operations, business affairs and financial condition of
         members of the Allied Group, or compliance with the terms of any Loan
         Document, as the Administrative Agent or any Lender acting through the
         Administrative Agent may reasonably request; and

                  (g) within 90 days after the beginning of each fiscal year, a
         copy of the annual forecasts of Allied Waste, prepared by management of
         Allied Waste, in each case in form and detail

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                                                                              95

         reasonably satisfactory to the Administrative Agent, consisting of
         Consolidated balance sheets and related statements of operations and
         cash flows of Allied Waste and its Restricted Subsidiaries for such
         fiscal year and for each of the following fiscal years occurring in
         whole or in part during the term of this Agreement.

                  SECTION 5.05. Litigation and Other Notices. It will, and will
  cause each of its Restricted Subsidiaries to, furnish to the Administrative
  Agent, each Issuing Bank and each Lender:

                  (a) as soon as possible and in any event within five Business
         Days after any Responsible Officer has knowledge thereof, written
         notice that a Default or Event of Default has occurred, specifying the
         nature and extent thereof and the corrective action (if any) taken or
         proposed to be taken with respect thereto;

                  (b) as soon as possible and in any event within five Business
         Days after any Responsible Officer has knowledge thereof, written
         notice of the filing or commencement of, or of any threat or notice of
         intention of any Person to file or commence, any action, suit or
         proceeding, whether at law or in equity or by or before any
         Governmental Authority, against any member of the Allied Group that
         could, individually or in the aggregate, reasonably be expected to have
         a Material Adverse Effect;

                  (c) prompt written notice of any development known to any
         Responsible Officer that has had, or could, individually or in the
         aggregate, reasonably be expected to have, a Material Adverse Effect;
         and

                  (d) as soon as possible and in any event within five Business
         Days after any Responsible Officer has knowledge thereof, written
         notice that a Change in Control has occurred or is reasonably likely to
         occur.

                  SECTION 5.06. Employee Benefits. It will, and will cause each
  of its Subsidiaries to:

                  (a) comply with the applicable provisions of ERISA and the
         Code (excluding, however, noncompliance that could not, individually or
         in the aggregate, reasonably be expected to have a Material Adverse
         Effect); and

                  (b) furnish to the Administrative Agent as soon as possible
         after, and in any event within 10 days after any Responsible Officer
         has knowledge that, any ERISA Event has occurred and is then
         outstanding that, alone or together with any other ERISA Event could
         reasonably be expected to result in liability of any member of the
         Allied Group in an aggregate amount exceeding $5,000,000 or requiring
         payments by any member of the Allied Group exceeding $2,500,000 in any
         year, a statement of a Financial Officer, setting forth details as to
         such ERISA Event

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                                                                              96

  and the action, if any, that Allied Waste proposes to take with respect
  thereto.

                  SECTION 5.07. Maintaining Records; Access to Properties and
  Inspections. It will, and will cause each of its Restricted Subsidiaries to,
  keep proper books of record and account sufficient to permit the preparation
  of financial statements in conformity with GAAP. Each of Allied Waste and the
  Borrower will, and will cause each of its Restricted Subsidiaries to, permit
  any representatives designated by the Administrative Agent or any Lender that
  are informed of the confidentiality provisions set forth in Section 9.12 of
  this Agreement and agree to be bound by such provisions to visit and inspect
  (at the expense of the Lenders unless an Event of Default has occurred and is
  continuing, in which case at the expense of the Borrower) the records, books,
  accounts and the properties of members of the Allied Group at reasonable
  times, with reasonable notice and without causing material disruption, and as
  often as reasonably requested and to make extracts from and copies of such
  records, books and accounts and permit any representatives designated by the
  Administrative Agent or any Lender to discuss the affairs, finances and
  condition of members of the Allied Group with the officers thereof and
  independent accountants therefor (subject to reasonable requests of
  confidentiality, including requirements imposed by law or contract).

                  SECTION 5.08. Environmental Laws. It will, and will cause each
  of its Subsidiaries to:

                  (a) comply, and use commercially reasonable efforts to cause
         all lessees and other Persons occupying its Properties to comply, in
         all respects with all Environmental Laws and Environmental Permits
         applicable to its operations and Properties; obtain and renew all
         Environmental Permits necessary for its operations and Properties;
         maintain appropriate financial assurance mechanisms in connection with
         its landfill operations as required under Environmental Law; and
         conduct any remedial action in accordance with Environmental Laws,
         except where such noncompliance or failure to obtain or renew
         Environmental Permits, maintain financial assurance mechanisms or to
         conduct any remedial action could not, individually or in the
         aggregate, reasonably be expected to have a Material Adverse Effect;
         provided that no member of the Allied Group shall be required to
         conduct remedial actions to the extent that any applicable obligation
         to do so is being contested in good faith and by proper proceedings and
         appropriate reserves are being maintained with respect to such
         circumstances; and

                  (b) with respect to any Permitted Acquisition having
         Acquisition Consideration in excess of $50,000,000, and any acquisition
         of any other ownership or leasehold interest in, or the entry into any
         agreement to conduct operations of, any landfill, transfer station or
         other waste treatment or disposal facility the total value of which is
         in excess of $50,000,000, prior to consummating any such acquisition or
         commencement of any operations under any such agreement or lease,
         obtain and review a written assessment, prepared by an environmental
         consulting firm

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                                                                              97

         recognized within the municipal solid waste industry and among
         environmental professionals as competent and reputable and which the
         Borrower has reasonably determined to be suitable, that reasonably
         addresses compliance with Environmental Law and material Environmental
         Liabilities associated with the subject of such acquisition, agreement
         or lease.

                  SECTION 5.09. Preparation of Environmental Reports. If a
  Default or Event of Default caused by reason of a breach of Section 3.16 or
  5.08 shall have occurred and be continuing, the Administrative Agent is
  authorized to engage an environmental consulting firm selected by the
  Administrative Agent reasonably acceptable to Allied Waste to prepare, on
  behalf of the Administrative Agent, the Lenders and the Issuing Banks but at
  the sole cost and expense of the Borrower, an environmental site assessment
  report for the Properties which are the subject of such default, which
  environmental site assessment report shall estimate the cost of any compliance
  or remedial action (if such costs are reasonably ascertainable) and evaluate
  potentially material Environmental Claims and potentially material
  Environmental Liabilities in connection with such Properties. Each of Allied
  Waste and the Borrower will, and will cause each of its Subsidiaries to,
  cooperate fully with the Administrative Agent and such environmental
  consulting firms in their preparation of such environmental assessment
  reports, including (without limitation), permitting any representatives
  designated by the Administrative Agent or such environmental consulting firms
  that are informed of the confidentiality provisions set forth in Section 9.12
  and agree to be bound by such provisions to visit and inspect the related
  Properties at reasonable times and as often as reasonably requested and to
  make extracts from and copies of environmental records of the members of the
  Allied Group. If requested by the Borrower, the Borrower shall be entitled to
  have access to the data relating to such environmental assessment reports.

                  SECTION 5.10. Further Assurances. It will, and will cause each
  of its Restricted Subsidiaries (other than Inactive Subsidiaries) to:

                  (a) Authorize or execute any and all further documents,
         financing statements, agreements and instruments, and take all further
         action (including, without limitation, filing Uniform Commercial Code
         and other financing statements) that the Required Lenders or the
         Administrative Agent may reasonably request in order to effectuate the
         transactions contemplated by the Loan Documents and in order to grant,
         preserve, protect and perfect the validity and first priority of the
         security interests created or intended to be created by the Security
         Documents (subject to Liens permitted by the Loan Documents).

                  (b) Take such action from time to time as shall be necessary
         to ensure that all Specified Subsidiaries (including Specified
         Subsidiaries formed or acquired pursuant to Permitted Acquisitions) are
         parties to the Subsidiary Guarantee Agreement hereunder, that all of
         the capital stock or other ownership interests of Specified
         Subsidiaries owned by the Borrower or the Specified Subsidiaries is
         pledged to the Collateral Agent or the

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                                                                              98

         Collateral Trustee pursuant to the applicable Security Document and
         that substantially all of the personal property of the Borrower and the
         Specified Subsidiaries (including assets acquired pursuant to Permitted
         Acquisitions) is pledged to the Collateral Agent or the Collateral
         Trustee pursuant to the applicable Security Document; provided,
         however, that the foregoing shall not apply to Subsidiaries with
         unaffiliated minority holders of Voting Stock which do not provide the
         required consent to such Subsidiary Guarantee Agreement or such other
         applicable Security Document; provided, further, that Allied Waste and
         the Borrower shall use commercially reasonable efforts to obtain any
         such required consents. Without limiting the generality of the
         foregoing, in the event that Allied Waste or any of the Specified
         Subsidiaries shall form or acquire any new Subsidiary after the date
         hereof that shall constitute a Specified Subsidiary, and in connection
         with each Permitted Acquisition, Allied Waste and the Specified
         Subsidiaries will, promptly after such formation or Permitted
         Acquisition (but subject to the first proviso set forth in the
         immediately preceding sentence):

                           (i) cause each new Specified Subsidiary to become
                  party to the Subsidiary Guarantee Agreement, a "Grantor" under
                  the Non-Shared Collateral Security Agreement or, if a
                  subsidiary of BFI, the Shared Collateral Security Agreement,
                  and, if applicable, a "Pledgor" under the Non-Shared
                  Collateral Pledge Agreement or the Shared Collateral Pledge
                  Agreement;

                           (ii) take and cause each new Specified Subsidiary to
                  take such action (including, without limitation, delivering
                  such shares of stock or other certificated ownership interests
                  and delivering such Uniform Commercial Code financing
                  statements) as shall be necessary to create and perfect valid
                  and enforceable first priority Liens (subject only to Liens
                  permitted by the Loan Documents) on substantially all of the
                  personal property of such new Specified Subsidiary and on
                  substantially all of the personal property acquired pursuant
                  to each Permitted Acquisition, as collateral security for the
                  Obligations hereunder and under the other Loan Documents;

                           (iii) deliver all certificates evidencing capital
                  stock or other ownership interests in such new Specified
                  Subsidiary owned by members of the Allied Group, each
                  accompanied by undated stock powers executed in blank; and

                           (iv) deliver such proof of corporate or other
                  Borrower action, incumbency of officers, opinions of counsel
                  and other documents as is consistent with those delivered by
                  each Loan Party pursuant to Section 4.01 on the Restatement
                  Effective Date.

                  (c) At its own cost and expense, promptly secure the
         Obligations by pledging or creating, or causing to be pledged or
         created, perfected security interests with respect to such of its

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                                                                              99

         assets and properties (other than Securitization Assets sold or
         purported to be sold in a Securitization permitted under this
         Agreement) as the Collateral Agent or the Required Lenders shall
         designate (it being understood that it is the intent of the parties
         that the Obligations shall be secured by, among other things,
         substantially all the assets of the Loan Parties and other properties
         acquired subsequent to the Restatement Effective Date, except for
         assets of a type that are not subject to a Lien granted under the
         Security Documents on the Restatement Effective Date). Such security
         interests and Liens will be created under Security Documents in form
         and substance satisfactory to the Collateral Agent, and shall be
         accompanied by all such instruments and documents (including legal
         opinions and lien searches) as the Collateral Agent or Collateral
         Trustee shall reasonably request.

Notwithstanding the foregoing provisions of this Section 5.10, no Loan Party
shall be required to pledge or create security interests in (i) landfills or
vehicles covered by a certificate of title unless the Administrative Agent
acting at the direction of the Required Lenders shall specifically request the
same (which requests may be given from time to time and may relate to all or
only specified landfills owned by members of the Allied Group), (ii) any assets
(excluding capital stock of subsidiaries) of such Loan Party with respect to
which the creation of such pledge or such security interest is prohibited by a
contract or other agreement of such Loan Party (x) existing on the Restatement
Effective Date or (y) entered into after the Restatement Effective Date in
compliance with the provisions hereof, (iii) capital stock of any Foreign
Subsidiary in excess of 65% thereof or (iv) capital stock of any Unrestricted
Subsidiary (other than a Securitization Vehicle).

                  SECTION 5.11. Compliance with Terms of Leaseholds. It will
  make, and will cause each of its Restricted Subsidiaries to make, all payments
  and otherwise perform all material obligations in respect of all Material
  Leases to which a member of the Allied Group is a party, keep such Material
  Leases in full force and effect and not allow such Material Leases to lapse or
  be terminated or any rights to renew such Material Leases to be forfeited or
  canceled, notify the Administrative Agent of any default by any party with
  respect to such Material Leases and cooperate with the Administrative Agent in
  all respects to cure any such default and cause each of Allied Waste's
  Restricted Subsidiaries to do so, except, in any case, where the failure to do
  any of the foregoing, either individually or in the aggregate, could not
  reasonably be expected to have a Material Adverse Effect.

                  SECTION 5.12. Performance of Material Agreements. It will, and
  will cause each of its Restricted Subsidiaries to perform and observe all of
  the terms and provisions of each Material Agreement, maintain each such
  Material Agreement in full force and effect, enforce such Material Agreement
  in accordance with its terms, except, in any case, where the failure to do any
  of the foregoing could not, either individually or in the aggregate,
  reasonably be expected to have a Material Adverse Effect.

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                                                                             100

                  SECTION 5.13. Information Regarding Collateral. (a) Allied
  Waste and the Borrower will furnish to the Administrative Agent quarterly,
  within 15 days after the end of each fiscal quarter, a report setting forth
  any change (i) in any corporate name of a Loan Party, (ii) in the location of
  any Loan Party's jurisdiction of incorporation or formation, (iii) in any Loan
  Party's corporate structure or (iv) in any Loan Party's Federal Taxpayer
  Identification Number or other identification number assigned by such Loan
  Party's jurisdiction of incorporation or formation.

                  (b) Each year, at the time of delivery of annual financial
statements with respect to the preceding fiscal year pursuant to clause (a) of
Section 5.04, Allied Waste and the Borrower shall deliver to the Administrative
Agent a certificate of a Financial Officer setting forth the information
required pursuant to Sections 1, 2, 7, 8, 9 and 10 of the Perfection
Certificates or confirming that there has been no change in such information
since the date of the Perfection Certificate delivered on the Restatement
Effective Date or the date of the most recent report delivered pursuant to
paragraph (a) of this Section.

                  SECTION 5.14. Casualty and Condemnation. The Borrower (a) will
  furnish to the Administrative Agent and the Lenders prompt written notice of
  any casualty or other insured damage to any material portion of any Collateral
  or the commencement of any action or proceeding for the taking of any
  Collateral or any part thereof or interest therein under power of eminent
  domain or by condemnation or similar proceeding and (b) will ensure that the
  Net Available Proceeds of any such event (whether in the form of insurance
  proceeds, condemnation awards or otherwise) are collected and applied in
  accordance with the applicable provisions of the Loan Documents.

                  SECTION 5.15. Compliance with Laws. It will, and will cause
  each of its Restricted Subsidiaries to, comply with all laws, rules,
  regulations and orders of any Governmental Authority applicable to it or its
  property, except where the failure to do so, individually or in the aggregate,
  could not reasonably be expected to result in a Material Adverse Effect.

                  SECTION 5.16. Use of Proceeds and Letters of Credit. The
  proceeds of the Term Loans and the Revolving Loans made on the Restatement
  Effective Date, together with the proceeds of the Equity Offerings, the March
  2003 Securitization and the Senior Note Offering, will be used only for the
  payment of (a) fees and expenses payable in connection with the Transactions
  and (b) the repayment of amounts outstanding and other obligations under this
  Agreement. The proceeds of the Revolving Loans and Swingline Loans made after
  the Restatement Effective Date will be used only for Permitted Acquisitions,
  Investments permitted by Section 6.05 and general corporate purposes,
  including working capital. Letters of Credit will be used solely to support
  payment obligations incurred in the ordinary course of business. No part of
  the proceeds of any Loan will be used, whether directly or indirectly, for any
  purpose that entails a violation of Regulations U or X of the Board.

                  SECTION 5.17. Interest Rate Protection. As promptly as
  practicable, and in any event within 90 days after the Restatement

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                                                                             101

  Effective Date, the Borrower will enter into, and thereafter for a period of
  not less than 3 years will maintain in effect, one or more interest rate
  protection agreements on such terms and with such parties as shall be
  reasonably satisfactory to the Initial Lenders, the effect of which shall be
  to fix or limit the interest cost to the Borrower with respect to at least 50%
  of the total Indebtedness for borrowed money of Allied Waste and its
  Restricted Subsidiaries (including the Loans) at the time outstanding.

                  SECTION 5.18. Delivery of Collateral. As promptly as
  practicable, and in any event within 30 days after the Restatement Effective
  Date, the Borrower shall have delivered, or caused the applicable Subsidiary
  to deliver, to the Administrative Agent the stock certificates, if any,
  required to be delivered pursuant to the Security Documents with respect to
  each Loan Party that is not a Material Loan Party.

                  SECTION 5.19. Termination of Liens. The Borrower will deliver
  to the Administrative Agent, as soon as practicable and in no event later than
  60 days after the date on which the Administrative Agent has provided notice
  to the Borrower that it will be required to release the applicable Liens as
  provided below (provided that such 60 day period may be extended by the
  Administrative Agent in its discretion by an additional 60 days if the
  Administrative Agent is satisfied with the progress thereof), Form UCC-3
  financing statements in form and substance reasonably satisfactory to the
  Administrative Agent terminating each of the existing liens listed on Schedule
  6.02(b) (collectively, the "Existing Liens") and any other Liens requested by
  the Administrative Agent that are set forth in lien search results received on
  or after the Restatement Effective Date (the "Additional Scheduled Liens") and
  any other documents reasonably requested by the Administrative Agent for the
  purpose of the terminating such Existing Liens and Additional Scheduled Liens;
  provided that the Administrative Agent may waive such termination requirement
  for any such Existing Lien or Additional Scheduled Lien if, in its sole
  judgment, such Lien is insignificant or is otherwise permitted pursuant to
  Section 6.02 (and all such Liens shall be deemed to be part of Schedule
  6.02(a)) or the UCC-1 financing statement filing to be terminated relates to
  obligations that have been repaid or extinguished.

                                   ARTICLE VI

                               Negative Covenants

                  Until the Commitments have expired or terminated and the
principal of and interest on each Loan and all fees payable to Lenders and
Issuing Banks hereunder have been paid in full and all Letters of Credit have
expired or been terminated and all LC Disbursements shall have been reimbursed,
each of Allied Waste and the Borrower covenants and agrees with the Lenders
that:

                  SECTION 6.01. Indebtedness; Certain Equity Securities. (a)
  Allied Waste and the Borrower will not, and will not permit any Restricted
  Subsidiary to, create, incur, assume or permit to exist any

<PAGE>

                                                                             102

  Indebtedness or any Attributable Debt in respect of Sale and Leaseback
  Transactions, except:

                  (i) Indebtedness created under the Loan Documents;

                  (ii) Indebtedness (including Guarantees) existing on the
         Effective Date and set forth on Schedule 6.01 and Indebtedness issued
         pursuant to any 2001 Indenture after July 31, 1999 and prior to the
         Restatement Effective Date;

                  (iii) Hedging Agreements permitted pursuant to Section 6.07;

                  (iv) Acquired Indebtedness of a Restricted Subsidiary acquired
         after the Restatement Effective Date and Acquired Indebtedness of a
         corporation merged or consolidated with or into the Borrower or a
         Restricted Subsidiary after the Restatement Effective Date, which
         Indebtedness in each case exists at the time of such acquisition,
         merger, consolidation or conversion into a Restricted Subsidiary and is
         not created in contemplation of such event and where such acquisition,
         merger or consolidation is permitted by this Agreement; provided that
         the Borrower and the Restricted Subsidiaries comply with the provisions
         of Section 5.10 with respect to any such acquired or newly formed
         Restricted Subsidiary;

                  (v) unsecured Indebtedness of Allied Waste, the Borrower or
         any Restricted Subsidiary that is issued to a seller of an Acquired
         Business and incurred in connection with a Permitted Acquisition;

                  (vi) unsecured Guarantees in respect of Indebtedness permitted
         pursuant to subparagraphs (iv), (v), (xii), (xiii), (xiv), (xv) and
         (xvii) of this Section 6.01(a); provided that any Guarantees in respect
         of Indebtedness that is subordinated to any of the Obligations or to
         Guarantees of the Obligations shall also be subordinated to the
         Obligations or to the Guarantees in favor of the Lenders under the Loan
         Documents, as the case may be, to the same extent as such Indebtedness
         is subordinated to any of the Obligations;

                  (vii) Indebtedness of the Borrower or any Subsidiary Loan
         Party to any other Subsidiary or the Borrower, so long as such
         Indebtedness is subordinated to all Obligations pursuant to terms
         substantially the same as those set forth on Annex A hereto;

                  (viii) (A) Indebtedness (i) of Allied Waste to the Borrower or
         any wholly owned Subsidiary, so long as the proceeds of such
         Indebtedness are used by Allied Waste solely for purposes permitted
         under Section 6.10, or (ii) of the Borrower or any wholly owned
         Restricted Subsidiary to Allied Waste; provided that all Indebtedness
         issued pursuant to this clause (viii)(A) shall be

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                                                                             103

         subordinated to the Obligations pursuant to terms substantially the
         same as those set forth on Annex A hereto, and (B) Indebtedness of
         Allied Waste, the Borrower or any Restricted Subsidiary to any
         Insurance Subsidiary; provided that the aggregate amount of
         Indebtedness incurred pursuant to this clause (vii)(B) at any time
         outstanding shall not exceed $75,000,000;

                  (ix) Indebtedness of the Borrower and Allied Waste under the
         Allied Guarantee;

                  (x) Indebtedness (including tax exempt financings and Capital
         Lease Obligations) and Attributable Debt of the Borrower or the
         Restricted Subsidiaries incurred after the Effective Date to finance
         Capital Expenditures permitted under Section 6.15 or in connection with
         Sale and Leaseback Transactions permitted by Section 6.04; provided
         that (A) such Indebtedness or Attributable Debt is incurred prior to or
         within 120 days after the acquisition, completion of construction,
         refurbishment or improvement of the fixed or capital assets being
         financed and does not exceed 100% of the cost thereof (including
         related financing fees and costs) and (B) the aggregate principal
         amount of Indebtedness and Attributable Debt incurred pursuant to this
         paragraph (x) outstanding at any time shall not exceed the greater of
         (I) $700,000,000 and (II) an amount equal to 5% of Consolidated Total
         Assets;

                  (xi) Indebtedness of Allied Waste or any Restricted Subsidiary
         that may be deemed to exist in connection with agreements providing for
         indemnification, purchase price adjustments, earn-outs and similar
         obligations in connection with acquisitions or sales of assets and/or
         businesses effected in accordance with the requirements of this
         Agreement;

                  (xii) Refinancing Indebtedness in respect of Indebtedness
         permitted under subparagraph (ii) or (iv) of this Section 6.01(a);

                  (xiii) Qualifying Senior Secured Indebtedness; provided that
         the Net Available Proceeds thereof are (x) to the extent required by
         Section 2.11, applied to the prepayment of Term Loans and (y) to the
         extent not required to be applied to the prepayment of Term Loans,
         obtained in a transaction constituting a Permitted Refinancing
         Transaction in respect of Targeted Senior Secured Indebtedness and used
         to repay, redeem or repurchase such Targeted Senior Secured
         Indebtedness;

                  (xiv) Permitted Subordinated Debt constituting Refinancing
         Indebtedness in respect of Refinanceable Indebtedness and issued in a
         Permitted Refinancing Transaction; provided that any Net Available
         Proceeds not applied to the repurchase, redemption, repayment or,
         subject to the limitation set forth in the definition of

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                                                                             104

         Refinancing Indebtedness, defeasance of such Refinanceable Indebtedness
         shall be applied to the prepayment of Term Loans to the extent required
         by Section 2.11;

                  (xv) Qualifying Senior Secured Indebtedness or Permitted
         Subordinated Debt (in addition to Qualifying Senior Secured
         Indebtedness and Permitted Subordinated Debt that is incurred pursuant
         to clause (xiii) or (xiv) of this Section 6.01(a)) issued for cash
         consideration; provided that 100% of the Net Available Proceeds from
         the issuance thereof are applied to the prepayment of Term Loans in
         accordance with Section 2.11;

                  (xvi) Indebtedness consisting of reimbursement obligations
         under surety, indemnity, performance, release and appeal bonds and
         guarantees thereof, in each case securing obligations not constituting
         Indebtedness for borrowed money and obtained in the ordinary course of
         business;

                  (xvii) Indebtedness of Foreign Subsidiaries, Insurance
         Subsidiaries, and other Restricted Subsidiaries that are not Subsidiary
         Loan Parties incurred after the Effective Date in an aggregate
         principal amount outstanding at any time not exceeding the greater of
         (1) $280,000,000 and (2) 2% of Consolidated Total Assets;

                  (xviii) unsecured Indebtedness of the Borrower or Allied Waste
         in addition to Indebtedness permitted by paragraphs (i) through (xvii)
         above; provided that (x) such Indebtedness is issued for cash
         consideration, has a longer weighted average life than the Term Loans
         hereunder, is not Guaranteed by any Restricted Subsidiary of the
         Borrower and is permitted pursuant to Section 6.14 and (y) 100% of the
         Net Available Proceeds of such Indebtedness are utilized to prepay Term
         Loans in accordance with Section 2.11;

                  (xix) contingent liabilities arising out of endorsements of
         checks and other negotiable instruments for deposit or collection in
         the ordinary course of business;

                  (xx) other Indebtedness of Allied Waste, the Borrower and the
         Restricted Subsidiaries in an aggregate principal amount outstanding at
         any time not exceeding the greater of (1) $420,000,000 and (2) 3% of
         Consolidated Total Assets;

                  (xxi) all premiums (if any), interest (including post-petition
         interest and other than capitalized interest), fees, expenses,
         indemnities, charges and additional or contingent interest on
         obligations described in clauses (i) through (xx) above; and

                  (xxii) Indebtedness consisting of representations, warranties,
         covenants and indemnities made by, and repurchase and other obligations
         of, the Borrower or any Restricted Subsidiary in connection with
         Securitizations

<PAGE>

                                                                             105

         permitted by Sections 6.05 and 6.06; provided that such
         representations, warranties, covenants, indemnities and repurchase and
         other obligations are of the type customarily included in
         securitizations of accounts receivable intended to constitute true
         sales of such accounts receivable to a securitization vehicle.

         (b) Neither Allied Waste nor the Borrower will, nor will they permit
any Restricted Subsidiary to, issue any Preferred Stock or other preferred
Equity Interests, other than the Sponsor Preferred Stock, the Mandatory
Convertible Securities and Non-Cash Pay Preferred Stock of Allied Waste or the
Borrower.

                  SECTION 6.02. Liens. Neither Allied Waste nor the Borrower
  will, nor will it cause or permit any of the Restricted Subsidiaries to,
  create, incur, assume or permit to exist any Lien on any property or assets
  (including stock or other securities of any Person, including any Subsidiary
  of Allied Waste) now owned or hereafter acquired by it or on any income or
  revenues or rights in respect of any thereof, except:

                  (a) Liens on properties or assets of members of the Allied
         Group existing on the Restatement Effective Date and set forth in
         Schedule 6.02; provided that such Liens shall secure only those
         obligations (and extensions, renewals and refinancings thereof
         permitted hereby) which they secure on the Restatement Effective Date;

                  (b) Liens created under the Loan Documents;

                  (c) Permitted Encumbrances;

                  (d) purchase money security interests in, and security
         interests arising in connection with a Sale and Leaseback Transaction
         involving, real property, improvements thereto, equipment or other
         fixed assets hereafter acquired (or, in the case of improvements,
         equipment or other fixed assets, constructed or refurbished) by the
         Borrower or any Subsidiary (including such security interests arising
         out of Capital Lease Obligations); provided that (i) such security
         interests secure Indebtedness or Attributable Debt permitted by Section
         6.01(a)(x), (ii) such security interests are incurred, and the
         Indebtedness or Attributable Debt secured thereby is created, within
         120 days after such acquisition (or completion of such construction) or
         refurbishment, (iii) the Indebtedness or Attributable Debt secured
         thereby does not exceed 100% of the cost of such real property,
         improvements or equipment at the time of such acquisition (or
         construction or refurbishment) and (iv) such security interests do not
         apply to any other property or assets of the Borrower or any Restricted
         Subsidiary (other than the proceeds of the real property, improvements,
         equipment or other fixed assets subject to the Lien);

                  (e) Liens securing Refinancing Indebtedness, to the extent
         that the Indebtedness being refinanced was originally secured in
         accordance with this Section 6.02, provided that such Lien does

<PAGE>
                                                                             106

         not apply to any additional property or assets of Allied Waste, the
         Borrower or any Subsidiary (other than (i) property or assets acquired
         after the issuance or incurrence of such Refinancing Indebtedness that
         would have been subject to the Lien securing the Indebtedness that such
         Refinancing Indebtedness refinanced if such Indebtedness had not been
         refinanced, (ii) additions to the property or assets subject to the
         Lien and (iii) the proceeds of the property or assets subject to the
         Lien);

                  (f) any Lien on the property or assets of an Acquired Business
         (other than on the stock or Equity Interests of a Subsidiary) securing
         Indebtedness permitted by Section 6.01(a)(iv); provided that such Lien
         existed at the time of and was not created in contemplation of the
         acquisition of such Acquired Business;

                  (g) Liens arising from Uniform Commercial Code financing
         statements and similar documents filed on a precautionary basis in
         respect of operating leases intended by the parties to be true leases
         (other than any such leases entered into in violation of this
         Agreement);

                  (h) any Lien on the property or assets of any Foreign
         Subsidiary, Insurance Subsidiary or other Restricted Subsidiary that is
         not a Subsidiary Loan Party securing Indebtedness permitted by Section
         6.01(a)(xvii);

                  (i) additional Liens on property (but not on the capital stock
         or other ownership interests of any Subsidiary owned by the Borrower,
         Allied Waste or any Subsidiary Loan Party) to secure Indebtedness
         (including, without limitation, Capital Lease Obligations in addition
         to those permitted by paragraph (d) of this Section 6.02) so long as
         neither the outstanding aggregate principal amount of such Indebtedness
         nor the aggregate book value of assets subject to such Liens at any
         time exceeds the greater of (1) $350,000,000 and (2) 2.5% of
         Consolidated Total Assets;

                  (j) any Lien pursuant to Environmental Law for costs or
         damages which are not yet due (by virtue of a written demand for
         payment by a Governmental Authority) or which are being contested in
         compliance with the standard set forth in section 5.08(a), or on
         property that the Borrower or a Subsidiary has determined to abandon if
         the sole recourse for such costs or damages is to such property;
         provided that the liability of the Borrower and the Subsidiaries with
         respect to the matters giving rise to all such Liens shall not, in the
         reasonable estimate of the Borrower (in light of all attendant
         circumstances, including the likelihood of contribution by third
         parties), exceed the greater of (i) $280,000,000 and (ii) 2% of the
         Consolidated Total Assets;

                  (k) all Liens created under the Shared Collateral Security
         Agreement and the Shared Collateral Pledge Agreement securing
         obligations in respect of the Qualifying Senior Secured Indebtedness
         permitted to be issued pursuant to Section 6.01(a);
<PAGE>
                                                                            107

         provided that such obligations are initially secured under such
         agreements at or about the time of the issuance thereof;

                  (l) Liens in favor of any Securitization Vehicle or any
         collateral agent on Securitization Assets transferred or purported to
         be transferred to such Securitization Vehicle in connection with
         Securitizations permitted by Sections 6.05 and 6.06; and

                  (m) Liens on any assets securing any premium, interest
         expense, fee, indemnity, charge or other expense permitted by Section
         6.01(a)(xxi), but only to the extent that the underlying Indebtedness
         is also secured by such assets.

Neither Allied Waste, the Borrower, nor any Restricted Subsidiary will issue or
assume any Indebtedness (other than Indebtedness issued pursuant to any 2001
Indenture secured only by the Shared Collateral) under the AWNA Senior Note
Indenture (other than the AWNA Senior Notes outstanding on the date hereof), the
BFI Indenture (other than the BFI Indenture Debt outstanding on the date hereof)
or any supplement or amendment thereto if such Indebtedness would be entitled to
be secured on a pari passu basis with the Obligations or otherwise by any Lien
on any Collateral securing the Obligations.

                  SECTION 6.03. No Other Negative Pledge. Allied Waste will not,
  nor will it cause or permit any of its Restricted Subsidiaries to, enter into
  any agreement prohibiting or conditioning (including pursuant to any pari
  passu security requirement) the creation or perfection of any Lien upon any of
  its property or assets, other than:

                           (i) in favor of the Lenders, the Issuing Banks or the
                  Secured Parties;

                           (ii) in favor of the holders of Permitted
                  Subordinated Debt; provided that such agreement does not so
                  restrict Liens securing the Obligations;

                           (iii) in connection with Indebtedness that may be
                  secured by a Lien or in connection with obligations secured by
                  Permitted Encumbrances in compliance with Section 6.02(a),
                  (d), (e), (f), (g), (h), (i), (k) or (l); provided that such
                  prohibition or condition does not apply to any property or
                  assets now or hereafter in existence not subject to such Lien;

                           (iv) in connection with any lease permitted under
                  Section 6.04 solely to the extent that such lease prohibits a
                  Lien on the lease or the property subject to such lease;

                           (v) pursuant to any agreement entered into by any
                  member of the Allied Group in connection with an Asset Sale
                  for the period beginning with the date such agreement is
                  entered into through the date such Asset Sale is consummated;
                  provided that (x) such negative pledge shall only relate to
                  the property being sold pursuant to such
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                                                                             108

                  Asset Sale and (y) such Asset Sale is permitted hereunder; or

                           (vi) pursuant to Section 9.14 of this Agreement.

                  SECTION 6.04. Sale and Lease-Back Transactions. Allied Waste
  will not, nor will it cause or permit any of its Restricted Subsidiaries to,
  enter into any Sale and Leaseback Transaction; provided that the Borrower or
  any Restricted Subsidiary may enter into any such transaction that (i) does
  not result in Capital Lease Obligations or Attributable Debt not permitted by
  Section 6.01(a)(x) and (ii) does not result in any Liens other than Liens
  permitted by Section 6.02(d).

                  SECTION 6.05. Investments, Loans, Guarantees and Acquisitions.
  Allied Waste will not, and will not permit any of its Restricted Subsidiaries
  to, purchase, hold or acquire (including pursuant to any merger with any
  Person that was not a wholly owned Restricted Subsidiary prior to such merger)
  any Investment in any other Person, or purchase or otherwise acquire (in one
  transaction or a series of transactions) any assets of any other Person
  constituting a business unit, except:

                  (a) Investments by Allied Waste and the Borrower (i) existing
         on the Effective Date and (ii) made after the Effective Date in the
         capital stock or other ownership interests of the Borrower and entities
         that, prior to and after such investments, are Loan Parties; loans or
         advances by the Borrower or any Loan Party to the Borrower or any Loan
         Party; and loans or advances by the Borrower or any Loan Party to
         Allied Waste or by Allied Waste to the Borrower or any Loan Party;
         provided that in any event no Loan Party shall make any Investments in,
         or loans or advances to, any Insurance Subsidiary, any Foreign
         Subsidiary, any Restricted Subsidiary that is not a Loan Party or any
         Unrestricted Subsidiary after the date hereof (other than in accordance
         with clause (h) below);

                  (b) Permitted Investments;

                  (c) Investments by the members of the Allied Group existing on
         the Restatement Effective Date and set forth in Schedule 6.05;

                  (d) loans and advances to employees of members of the Allied
         Group (including for travel, entertainment and relocation expenses) in
         the ordinary course of their business;

                  (e) loans by members of the Allied Group to their employees in
         connection with management incentive plans not to exceed $25,000,000 at
         any time outstanding; provided that such limitation shall not apply to
         loans the proceeds of which are used to purchase common stock of Allied
         Waste;

                  (f) guarantees not constituting Indebtedness by Allied Waste
         or any Restricted Subsidiary of any contractual obligation (other than
         Indebtedness) of the Borrower or any Loan Party;

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                                                                             109

                  (g) Investments in the capital stock or other ownership
         interests of any Subsidiary Loan Party; provided that (i) such capital
         stock or interest is pledged to the Collateral Agent or the Collateral
         Trustee pursuant to the Non-Shared Collateral Pledge Agreement or the
         Shared Collateral Pledge Agreement and (ii) Allied Waste, the Borrower
         and such Subsidiary comply with the applicable provisions of Section
         5.10 with respect to such newly formed Subsidiary;

                  (h) other Investments made after the Effective Date in an
         aggregate amount at any time outstanding not to exceed the greater of
         (x) $420,000,000 and (y) 3% of Consolidated Total Assets;

                  (i) loans or advances (which shall not be deemed to include
         accounts receivable) made to customers in an aggregate amount
         outstanding not at any time exceeding $50,000,000;

                  (j) receivables owing to members of the Allied Group that
         arise in the ordinary course of business and are payable or
         dischargeable in accordance with customary trade terms;

                  (k) Permitted Acquisitions and other transactions permitted by
         6.06;

                  (l) investments in or acquisitions of landfills, collection
         centers or other producing assets located in the United States pursuant
         to contemporaneous exchanges of similar assets with any other Person;
         provided that any portion of assets acquired for consideration other
         than any such exchange shall be deemed a Capital Expenditure and be
         subjected to the limitations of Section 6.15;

                  (m) any Investment consisting of a Hedging Agreement permitted
         by Section 6.07;

                  (n) any Investment acquired by any of the Loan Parties (A) in
         exchange for any other Investment or accounts receivable held by such
         Loan Party as a result of a bankruptcy, workout, reorganization or
         recapitalization of the issuer of such other Investment or accounts
         receivable; (B) as a result of a foreclosure by such Loan Party or
         other transfer of title with respect to any secured Investment in
         default; or (C) in connection with the acquisition of an Acquired
         Business permitted hereunder which was an Investment of such Acquired
         Business existing prior to the date of such acquisition and not made in
         contemplation thereof;

                  (o) the Guarantees issued by Allied Waste and/or its
         Subsidiaries in respect of the 2001 Senior Notes and any other
         Guarantee expressly permitted pursuant to Section 6.01(a)(ii), (vi),
         (ix) or (xx);

                  (p) investments consisting of Sellers' Retained Interests in
         Securitizations permitted by Section 6.06; and

<PAGE>

                                                                             110

                  (q) investments consisting of any non-cash consideration
         received in connection with an Asset Sale permitted hereunder.

Notwithstanding any other provision of this Agreement but subject to the proviso
below, Allied Waste and the Borrower will not, and will not permit any
Restricted Subsidiary to, (i) effect any acquisition (including any Permitted
Acquisition) of a business concern or purchase or acquire any Equity Interests
of any business concern other than such an acquisition or purchase made by (or
pursuant to a merger or consolidation of) the Borrower or a Restricted
Subsidiary other than BFI or its Subsidiaries, (ii) effect any transfer of
material assets or properties, or of Equity Interests in any Restricted
Subsidiary, to, or make any material investment (other than intercompany loans
and advances permitted by Section 6.01) in, BFI or its Restricted Subsidiaries
(other than any such transfer or investment made by BFI or its Restricted
Subsidiaries) or (iii) effect any merger or consolidation with BFI or its
Subsidiaries (other than any such merger or consolidation involving only BFI or
its then existing Subsidiaries); provided, however, that any transaction
referred to in clauses (i), (ii) or (iii) above may be effected if (x) such
transaction can reasonably be expected to result in material tax, operational or
corporate governance savings or efficiencies or benefits of the Allied Group or
avoid material tax, operational or corporate governance costs, inefficiencies or
detriments to the Allied Group that would result from effecting the relevant
acquisition, transfer, investment or merger in a manner otherwise permitted by
this paragraph and (y) Allied Waste and the Borrower, in the exercise of their
commercially reasonable efforts, are not able to achieve comparable tax savings,
efficiencies or benefits or substantially avoid such material tax, operational
or corporate governance costs, inefficiencies or detriments, by restructuring
the relevant transaction or otherwise, in a manner permitted by this paragraph
without regard to this proviso.

                  SECTION 6.06. Mergers, Consolidations, Sales of Assets and
  Acquisitions. Neither Allied Waste nor the Borrower will, nor will it cause or
  permit any of its Restricted Subsidiaries to, merge into or consolidate with
  any other Person, or permit any other Person to merge into or consolidate with
  it, or conduct any Asset Sale of (in one transaction or in a series of
  transactions) all or any substantial part of Allied Waste's, the Borrower's
  and the other Restricted Subsidiaries' assets (whether now owned or hereafter
  acquired), or purchase, lease or otherwise acquire (in one transaction or a
  series of transactions) all or any substantial part of the assets of any other
  Person consisting of a business or operating unit, except that:

                  (a) if at the time thereof and immediately after giving effect
         thereto no Event of Default or Default shall have occurred and be
         continuing (i) any wholly owned Restricted Subsidiary of Allied Waste
         (other than an Insurance Subsidiary, BFI or any subsidiary of BFI) may
         merge into the Borrower in a transaction in which the Borrower is the
         surviving corporation and (ii) any Restricted Subsidiary of Allied
         Waste (other than an Insurance Subsidiary) may merge into or
         consolidate with any other Restricted Subsidiary of Allied Waste (other
         than an Insurance Subsidiary) in a transaction in which the surviving
         entity is a wholly owned Restricted Subsidiary of Allied Waste and no
         Person other than the Borrower or a wholly owned Subsidiary of Allied
<PAGE>

                                                                             111

         Waste receives any consideration (provided that BFI and its Restricted
         Subsidiaries shall not merge into or consolidate with the Borrower or
         any Subsidiary other than BFI and its Restricted Subsidiaries). In
         connection with one or more Permitted Acquisitions, subject to Section
         6.05 in the case of BFI and its subsidiaries, the Borrower or any of
         its Restricted Subsidiaries (including BFI and any Restricted
         Subsidiary of BFI) may merge with or into another Person and BFI or any
         Restricted Subsidiary of BFI may also engage in any transaction
         referred to in clauses (i) and (ii) above, if (x) such transaction can
         reasonably be expected to result in material tax, operational or
         corporate governance savings, efficiencies or benefits of the Allied
         Group or avoid material tax, operational or corporate governance costs,
         inefficiencies or detriments to the Allied Group that would result from
         effecting the merger of the Borrower, such Restricted Subsidiary of the
         Borrower, BFI or such Restricted Subsidiary of BFI, as the case may be,
         into the Borrower or such other Restricted Subsidiary, as the case may
         be, and (y) Allied Waste and the Borrower, in the exercise of their
         commercially reasonable efforts, are not able to achieve comparable
         tax, operational or corporate governance savings, efficiencies or
         benefits or substantially avoid such material tax costs, inefficiencies
         or detriments by restructuring the relevant transaction or otherwise,
         in a manner permitted by this paragraph (a) without regard to this
         proviso;

                  (b) any Restricted Subsidiary of Allied Waste (other than the
         Borrower) may change the jurisdiction in which it is incorporated or
         organized so long as (i) the new jurisdiction of incorporation or
         organization of any Domestic Subsidiary is in the United States, (ii)
         notice is given to the Administrative Agent pursuant to Section 5.13
         and (iii) any Uniform Commercial Code financing statements or
         amendments or any other documents reasonably requested by the
         Administrative Agent to evidence such change have been filed by the
         Administrative Agent within ten (10) days of such change;

                  (c) the Borrower or any of the Loan Parties (other than (i)
         Insurance Subsidiaries and (ii) BFI and its subsidiaries, unless
         permitted pursuant to the last paragraph of Section 6.05) may make
         Permitted Acquisitions and Investments permitted by Section 6.05;

                  (d) the Borrower or any of its Restricted Subsidiaries may
         conduct Asset Sales; provided that the Net Available Proceeds of each
         such Asset Sale shall be applied in the manner set forth in Section
         2.11; and provided further that any sale, transfer or other disposition
         of assets or stock with a fair market value in excess of 2% of
         Consolidated Total Assets and not otherwise prohibited by this Section
         6.06 shall not be permitted unless (A) such sale, transfer or other
         disposition is for consideration at least 75% of which is cash and (B)
         such consideration is at least equal to the fair market value of the
         assets, transferred or disposed of (as determined in good faith by the
         Board of Directors or officers of the Borrower);

<PAGE>

                                                                             112

                  (e) the Borrower and its Restricted Subsidiaries may effect
         asset swaps permitted by Section 6.05(l);

                  (f) Allied Waste may make Asset Sales to any of the Loan
         Parties and any Loan Party may make Assets Sales to Allied Waste or to
         another Loan Party; and

                  (g) the Borrower or any Restricted Subsidiary may sell
         Securitization Assets to one or more Securitization Vehicles in
         Securitizations; provided that (i) each such Securitization is effected
         on market terms, (ii) the aggregate amount of Third Party Securities in
         respect of all such Securitizations does not exceed $400,000,000 at any
         time outstanding, (iii) the aggregate amount of the Sellers' Retained
         Interests in such Securitizations does not exceed an amount at any time
         outstanding that is customary for similar transactions, (iv) the
         proceeds to each such Securitization Vehicle from the issuance of Third
         Party Securities are applied substantially simultaneously with receipt
         thereof to the purchase from the Borrower or Restricted Subsidiaries of
         Securitization Assets and an amount equal to 100% of the Net Available
         Proceeds from each such Securitization (other than the March 2003
         Securitization) is applied to the mandatory repayment of Term Loans in
         accordance with Section 2.11(c) and (v) the Equity Interests and
         Sellers' Retained Interests in respect of each such Securitization
         Vehicle shall be pledged to the Shared Collateral Secured Parties
         pursuant to the Shared Collateral Pledge Agreement or Shared Collateral
         Security Agreement or the Secured Parties pursuant to the Non-Shared
         Collateral Pledge Agreement or Non-Shared Collateral Security
         Agreement, as the case may be (it being understood that Section 9.14
         shall apply to the Collateral Agent and any Secured Parties benefiting
         from any such pledge).

                  SECTION 6.07. Hedging Agreements. The Borrower will not, and
  will not permit any of its Restricted Subsidiaries to, enter into any Hedging
  Agreement, other than (a) Hedging Agreements required by Section 5.17, (b)
  Hedging Agreements with respect to AWNA Senior Notes, 2001 Senior Notes and
  BFI Indenture Debt, (c) Hedging Agreements with respect to any Refinancing
  Indebtedness, Qualifying Senior Secured Indebtedness or Permitted Subordinated
  Debt, (d) Hedging Agreements entered into in the ordinary course of business
  to hedge or mitigate risks to which Allied Waste or any Subsidiary is exposed
  in the conduct of its business or the management of its liabilities, (e)
  Hedging Agreements existing on the Restatement Effective Date and (f) Hedging
  Agreements in connection with any Securitizations permitted by Sections 6.05
  and 6.06.

                  SECTION 6.08. Restricted Payments; Certain Payments of
  Indebtedness. (a) Allied Waste will not, nor will it permit any of its
  Restricted Subsidiaries to, declare or make, or agree to pay or make, directly
  or indirectly, any Restricted Payment, or incur any obligation (contingent or
  otherwise) to do so, except:

                  (i) Allied Waste may declare and pay dividends with respect to
its capital stock payable solely in additional shares of its capital stock;

<PAGE>

                                                                             113
                  (ii) Restricted Subsidiaries of the Borrower may declare and
pay dividends ratably with respect to their capital stock;

                  (iii) Allied Waste may make Restricted Payments, not exceeding
an aggregate amount of $25,000,000 during any fiscal year, pursuant to and in
accordance with the stock option plans or other benefit plans or in connection
with incentive or compensation arrangements for current or former management or
employees of the Borrower and its Restricted Subsidiaries;

                  (iv) the Borrower or any Restricted Subsidiary may declare and
make dividend payments to Allied Waste solely to the extent necessary for Allied
Waste to pay for taxes and to pay administrative expenses to conduct its
business in accordance with Sections 5.01(b) and 6.10;

                  (v) Allied Waste may declare and pay dividends in respect of
the Sponsor Preferred Stock payable solely in additional shares of Sponsor
Preferred Stock (or other capital stock, as provided therein) and at any time
after June 30, 2004, the Borrower or any Restricted Subsidiary may pay cash
dividends to Allied Waste in an aggregate cumulative amount of not more than
$75,000,000 in order to permit Allied Waste to pay cash dividends on the Sponsor
Preferred Stock (including on shares theretofore paid as dividends thereon in
accordance with this clause (v)) and Allied Waste may use such dividends to pay
cash dividends not exceeding an aggregate amount of $75,000,000 on such Sponsor
Preferred Stock; provided in each case that no Default or Event of Default has
occurred and is then continuing;

                  (vi) the Borrower or any Restricted Subsidiary may pay cash
dividends to Allied Waste in order to permit Allied Waste to pay cash dividends
on the Sponsor Preferred Stock (including on shares theretofore paid as
dividends thereon in accordance with clause (v) hereof) and Allied Waste may use
such dividends to pay cash dividends on the Sponsor Preferred Stock; provided,
however, that all cash dividend payments in accordance with this clause (vi) are
subject to the satisfaction of the following additional conditions on the date
of such dividend payment and after giving effect thereto:

                      (x) no Default or Event of Default shall have occurred and
              be continuing;

                      (y) the Leverage Ratio as of the last day of the previous
              fiscal quarter is less than or equal to 4.00 to 1.00; and

                      (z) the Interest Coverage Ratio for the Rolling Period
              most recently ended prior to the date of such dividend payment,
              taking into account that such dividend is payable in cash, is not
              less than that required by Section 6.13;

                  (vii) Allied Waste and its Restricted Subsidiaries may make
Restricted Payments to the extent required by the terms of its joint venture or
similar agreements in effect on the Restatement Effective Date and listed on
Schedule 6.08; provided that immediately prior, and after giving effect to, such
Restricted Payment, no Default or Event of Default shall have occurred and be
continuing;

<PAGE>

                                                                             114

                  (viii) the Borrower or any Restricted Subsidiary may pay cash
dividends to Allied Waste in an amount sufficient to permit Allied Waste to pay
cash dividends in respect of its capital stock and Allied Waste may pay cash
dividends in respect of its capital stock; provided that all cash dividend
payments in accordance with this clause (viii) are subject to the satisfaction
of the following additional conditions on the date of such dividend payment and
after giving effect thereto:

                      (w) no Default or Event of Default shall have occurred and
              be continuing;

                      (x) the Leverage Ratio as of the last day of the previous
              fiscal quarter is less than 4.00 to 1.00;

                      (y) the Interest Coverage Ratio for the Rolling Period
              most recently ended prior to the date of such dividend payment,
              taking into account that such dividend payment is payable in cash,
              is not less than that required by Section 6.13; and

                      (z) the aggregate amount of Restricted Payments made
              pursuant to this clause (viii) in any Excess Cash Flow Calculation
              Period does not exceed an amount equal to the Borrower's Portion
              of Excess Cash Flow for the immediately preceding Excess Cash Flow
              Calculation Period less the aggregate amount of all other
              Designated Excess Cash Expenditures made in such current Excess
              Cash Flow Calculation Period;

                  (ix) Allied Waste may repurchase its outstanding common stock;
provided, however, that all Restricted Payments in accordance with this clause
(ix) are subject to the satisfaction of the following additional conditions on
the date of such Restricted Payment and after giving effect thereto:

                      (x) no Default or Event of Default shall have occurred and
              be continuing;

                      (y) the Leverage Ratio as of the last day of the previous
              fiscal quarter is less than or equal to 3.25 to 1.00; and

                      (z) the aggregate amount of Restricted Payments made
              pursuant to this clause (ix) in any Excess Cash Flow Calculation
              Period does not exceed an amount equal to the Borrower's Portion
              of Excess Cash Flow for the immediately preceding Excess Cash Flow
              Calculation Period less the aggregate amount of all other
              Designated Excess Cash Expenditures made in such current Excess
              Cash Flow Calculation Period;

                  (x) Allied Waste may redeem Permitted Cure Securities, if any,
in accordance with the terms thereof with the proceeds of an issuance of its
common stock or preferred stock; provided that (1) no Event of Default shall
have occurred and be continuing and (2) such stock so issued is (x) Non-Cash Pay
and (y) subordinate to the Obligations at least to the same extent that such
Permitted Cure Securities are subordinate to the Obligations;

<PAGE>

                                                                             115

                  (xi) Allied Waste may declare and pay dividends in respect of
the Mandatory Convertible Securities; and

                  (xii) the Borrower or any Restricted Subsidiary may pay cash
dividends to Allied Waste in an amount sufficient to permit Allied Waste to pay
cash dividends on the Mandatory Convertible Securities (including shares
theretofore paid as dividends thereon in accordance with clause (xi) hereof);
provided, however, that no Default or Event of Default shall have occurred and
be continuing upon declaration of such cash dividend, after giving effect
thereto.

                  (b) Allied Waste will not, nor will it permit any of its
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or
suffer to exist or become effective any encumbrance or restriction (other than
restrictions on payments, repayments or dividends made or paid by the Borrower
to Allied Waste) on the ability of any such Subsidiary to (1) pay any dividends
or make any other distributions on its capital stock or any other ownership
interest or (2) make or repay any loans or advances to the Borrower or the
parent of such Subsidiary, except for:

                  (w) restrictions imposed by law or by any Loan Document;

                  (x) existing restrictions under the Indebtedness set forth in
         Schedule 6.01;

                  (y) existing restrictions under the AWNA Senior Note
         Indenture, any 2001 Indenture outstanding on the Restatement Effective
         Date and the 10% Note Documents and restrictions in other Indebtedness
         permitted by Section 6.01(a) issued after the Restatement Effective
         Date that are no more restrictive than such existing restrictions; and

                  (z) restrictions pursuant to (1) customary provisions in
         agreements entered into by any member of the Allied Group in connection
         with a joint venture permitted hereunder; provided that such
         restrictions only relate to such joint venture, the Equity Interests in
         such joint venture and the assets owned or otherwise held by such joint
         venture and (2) any agreement entered into by any member of the Allied
         Group in connection with an Asset Sale for the period beginning with
         the date such agreement is entered into through the date that such
         Asset Sale is consummated; provided that (A) such restrictions only
         restrict dividends to be paid by any Subsidiary of Allied Waste in
         respect of the capital stock or assets that are being sold pursuant to
         such Asset Sale and (B) such Asset Sale is permitted hereunder.

                  SECTION 6.09. Transactions with Affiliates. (a) Allied Waste
  will not, nor will it cause or permit any of its Restricted Subsidiaries to,
  sell or transfer any property or assets to, or purchase or acquire any
  property or assets from, or otherwise engage in any other transactions with,
  any of its Affiliates (other than as provided in (b) below), except:

<PAGE>

                                                                             116

                  (i) subject to the provisions of Section 6.08, between or
         among Allied Waste, the Borrower or any Subsidiary Loan Parties; and

                  (ii) that any member of the Allied Group may engage in any of
         the foregoing transactions, including the payment of financial
         advisory, financing, underwriting or placement fees or other investment
         banking fees, in the ordinary course of business at prices and on terms
         and conditions not less favorable to the members of the Allied Group
         than could be obtained on an arm's-length basis from unrelated third
         parties.

                  (b) Allied Waste will not, nor will it cause or permit any of
its Subsidiaries to, make any payment of or on account of monitoring or
management fees payable to the Sponsors or their Affiliates unless on the date
of such payment no Default or Event of Default has occurred and is continuing or
would result therefrom.

                  (c) The foregoing paragraph (a) shall not prohibit, to the
extent otherwise permitted under this Agreement, (i) any issuance of securities
of Allied Waste, or other payments, awards or grants in cash, securities of
Allied Waste or other property pursuant to, or the funding of, employment
arrangements, stock options and stock ownership plans approved by the Board of
Directors of Allied Waste, (ii) loans or advances to employees of Allied Waste,
the Borrower or any Subsidiary in accordance with Sections 6.05(d) and (e),
(iii) the payment of fees and indemnitees to directors, officers and employees
of Allied Waste, the Borrower and the Subsidiaries in the ordinary course of
business, (iv) transactions pursuant to Hedging Agreements permitted by Section
6.07, (v) any employment agreements entered into by the Borrower or any of the
Restricted Subsidiaries in the ordinary course of business, (vi) any purchase by
the Sponsors of capital stock of Allied Waste or any purchase by Allied Waste of
capital stock or other equity securities of any Restricted Subsidiaries or any
contribution by Allied Waste to the equity capital of the Borrower, (vii)
Securitizations permitted by Sections 6.05 and 6.06 or (viii) any Restricted
Payment permitted by Section 6.08.

                  SECTION 6.10. Business of Allied Waste, Borrower and
  Subsidiaries. Allied Waste will not, nor will it cause or permit any of its
  Restricted Subsidiaries to:

                  (a) engage at any time, (i) in the case of the Borrower and
         each of the Restricted Subsidiaries (other than the Insurance
         Subsidiaries), in any business or business activity other than the
         business currently conducted by them and business activities reasonably
         related or incidental thereto and (ii) in the case of Allied Waste, in
         any business or business activity other than the direct ownership of
         all the outstanding stock of the Borrower or of any Unrestricted
         Subsidiary and all activities reasonably related or incidental thereto;
         or

                  (b) enter into any general partnership arrangement or become a
         general partner of a limited partnership arrangement other than through
         a special purpose wholly owned Subsidiary;
<PAGE>

                                                                             117

         provided that any Investments associated with such general partnership
         shall be permitted hereunder.

                  In addition, none of the Loan Parties will permit the
         Insurance Subsidiaries to engage to any substantial extent in any line
         or lines of business or business activity other than the business
         currently conducted by such Insurance Subsidiaries and business
         activities reasonably related or incidental thereto.

                  SECTION 6.11. Other Indebtedness and Agreements. The Borrower
  will not, nor will it cause or permit any of the Restricted Subsidiaries to:

                  (a) make any distribution, whether in cash, property,
         securities or a combination thereof, other than scheduled payments and
         mandatory prepayments of principal and interest as and when due (to the
         extent not prohibited by applicable subordination provisions), in
         respect of, or pay, or offer or commit to pay, or directly or
         indirectly redeem, repurchase, retire or otherwise acquire for
         consideration, or set apart any sum for the aforesaid purposes, (i) any
         Junior Indebtedness, or (ii) any other Indebtedness for borrowed money
         (except for the Obligations and intercompany Indebtedness permitted
         hereby) other than, without duplication, (w) prepayments of
         Indebtedness permitted or required pursuant to Section 2.11(c) and
         Section 6.01, (x) payments of Indebtedness incurred pursuant to Section
         6.01(a)(xxii), (y) prepayments of Indebtedness incurred under Section
         6.01(a)(xvii) or (xx) with the proceeds of other Indebtedness incurred
         under Section 6.01(a)(xvii) or (xx), respectively, and (z) prepayments
         of Refinanceable Indebtedness in a cumulative amount per Excess Cash
         Flow Calculation Period not greater than an amount equal to the
         Borrower's Portion of Excess Cash Flow for the immediately preceding
         Excess Cash Flow Calculation Period less the amount of other Designated
         Excess Cash Expenditures made in such current Excess Cash Flow
         Calculation Period, commencing with the Excess Cash Flow Calculation
         Period ended March 31, 2004; provided however that, in the event that
         the Borrower issues Refinancing Indebtedness with respect to the
         Indebtedness prepaid, repurchased or redeemed pursuant to this clause
         (z) no later than 30 days after making any such prepayment, repurchase
         or redemption, then the Borrower's Portion of Excess Cash Flow
         available in such Excess Cash Flow Calculation Period shall be
         increased in an amount equal to the Net Available Proceeds received in
         connection with such issuance, provided that such amount of the
         Borrower's Portion of Excess Cash Flow shall not be increased by an
         amount greater than the amount expended in connection with the
         applicable prepayment, repurchase or redemption by the Borrower; or

                  (b) make any payment or prepayment of any Indebtedness that
         would violate the terms of this Agreement or of such Indebtedness, any
         agreement or document evidencing, related to or securing the payment or
         performance of such Indebtedness or any subordination agreement or
         provision applicable to such Indebtedness.

<PAGE>

                                                                             118

                  SECTION 6.12. Amendment of Material Documents. Without the
  consent of the Required Lenders, neither Allied Waste nor the Borrower will,
  nor will they permit any Restricted Subsidiary to, permit any waiver,
  supplement, modification, amendment, termination or release of (a) any
  Material Agreement (other than any Material Agreement in respect of any
  Securitization), any Subordinated Debt Document, the AWNA Senior Debt
  Indenture, the 2001 Indenture, the BFI Indenture or any other indenture,
  instrument or agreement pursuant to which any Indebtedness or Preferred Stock
  of any member of the Allied Group is outstanding in an aggregate outstanding
  principal or face amount in excess of $50,000,000 or (b) its certificate of
  incorporation, by-laws or other organizational documents in any such case, in
  a manner which could, individually or in the aggregate, reasonably be expected
  to (i) materially impair the Loan Parties' ability to perform their
  obligations hereunder or under the Loan Documents or (ii) be adverse to the
  Lenders in any material respect.

                  SECTION 6.13. Interest Coverage Ratio. Allied Waste and the
  Borrower will not permit the Interest Coverage Ratio as of the last day of any
  fiscal quarter ending during any period set forth below to be less than the
  ratio set forth below opposite such period:

<TABLE>
<CAPTION>
              Period                                                      Minimum Ratio
              ------                                                      -------------
<S>                                                                       <C>
March 31, 2003 through September 30, 2003                                 1.90 to 1.00
December 31, 2003 through September 30, 2004                              2.00 to 1.00
December 31, 2004 through June 30, 2005                                   2.15 to 1.00
September 30, 2005 through June 30, 2006                                  2.25 to 1.00
September 30, 2006 through March 31, 2007                                 2.50 to 1.00
June 30, 2007 through September 30, 2007                                  2.75 to 1.00
December 31, 2007 and thereafter                                          3.00 to 1.00
</TABLE>

                  SECTION 6.14. Leverage Ratio. Allied Waste and the Borrower
  will not permit the Leverage Ratio as of the last day of any fiscal quarter
  ending during any period set forth below to be more than the ratio set forth
  opposite such period:

<TABLE>
<CAPTION>
                Period                                                    Maximum Ratio
                ------                                                    -------------
<S>                                                                       <C>
March 31, 2003 through September 30, 2003                                 5.75 to 1.00
December 31, 2003 through September 30, 2004                              5.50 to 1.00
December 31, 2004 through September 30, 2005                              4.75 to 1.00
December 31, 2005 through September 30, 2006                              4.50 to 1.00
December 31, 2006 through September 30, 2007                              4.00 to 1.00
December 31, 2007 and thereafter                                          3.50 to 1.00
</TABLE>

                  SECTION 6.15. Capital Expenditures. (a) Subject to paragraph
  (b) below, Allied Waste and the Borrower will not, and will not permit any of
  the Restricted Subsidiaries to, make any Capital Expenditures that would cause
  the aggregate amount of such Capital Expenditures made by Allied Waste, the
  Borrower and the Restricted Subsidiaries in any fiscal year to exceed
  $750,000,000.

                  (b) Notwithstanding the foregoing, the Borrower may in any
fiscal year, upon written notice to the Administrative Agent, increase the
amount of Capital Expenditures permitted to be made during such
<PAGE>

                                                                             119

fiscal year pursuant to this Section 6.15 by an amount equal to the total unused
amount of Capital Expenditures permitted to be made pursuant to this Section
6.15 for the immediately preceding fiscal year (but not including the amount of
any unused Capital Expenditures permitted to be made during such immediately
preceding fiscal year pursuant to this Section 6.15 that were carried forward to
such preceding fiscal year pursuant to this paragraph (b)).

                  SECTION 6.16. Designation of Unrestricted Subsidiaries. The
  Borrower will not designate any Subsidiary (other than a newly created
  Subsidiary in which no investment has previously been made) as an
  "Unrestricted Subsidiary" under this agreement (a "Designation") unless:

         (i)      no Event of Default shall have occurred and be continuing at
                  the time of or after giving effect to such Designation;

         (ii)     the Borrower has delivered to the Agent (x) written notice of
                  such Designation and (y) a certificate, dated the effective
                  date of such Designation, of an Executive Officer stating that
                  no Event of Default has occurred and is continuing and setting
                  forth reasonably detailed calculations demonstrating pro forma
                  compliance with Section 6.13 and Section 6.14 in accordance
                  with paragraph (i) above; and

         (iii)    such Subsidiary has not Guaranteed (after giving effect to
                  such Designation) any Indebtedness of Allied Waste or any
                  other Restricted Subsidiary.

Neither the Borrower nor any Restricted Subsidiary shall at any time (x) provide
a Guarantee of any Indebtedness of any Unrestricted Subsidiary, (y) be directly
or indirectly liable for any Indebtedness of any Unrestricted Subsidiary or (z)
be directly or indirectly liable for any other Indebtedness which provides that
the holder thereof may (upon notice, lapse of time or both) declare a default
thereon (or cause such Indebtedness or the payment thereof to be accelerated,
payable or subject to repurchase prior to its final scheduled maturity) upon the
occurrence of a default with respect to any other Indebtedness that is
Indebtedness of an Unrestricted Subsidiary, except in the case of clause (x) or
(y) to the extent permitted under Section 6.01 and Section 6.05 hereof. Each
Designation shall be irrevocable, and no Unrestricted Subsidiary may become a
Restricted Subsidiary, be merged with or into the Company or a Restricted
Subsidiary or liquidate into or transfer substantially all its assets to the
Company or a Restricted Subsidiary.

                  SECTION 6.17. Commingling of Accounts. The Borrower will not,
  nor will it cause or permit any Restricted Subsidiary to, commingle amounts
  relating to Securitization Assets sold pursuant to a Securitization with cash
  or any other amounts of the Borrower and its Subsidiaries other than the
  temporary commingling of collections on and proceeds of any accounts
  receivable or related assets of the Borrower and its Subsidiaries, in each
  case as may be necessary to identify and sort such collections and proceeds.

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                                                                             120

                                  ARTICLE VII

                        Events of Default; Right To Cure

                  SECTION 7.01. Events of Default. If any of the following
  events ("Events of Default") shall occur:

                  (i) the Borrower shall fail to pay any principal of any Loan
         or any reimbursement obligation in respect of any LC Disbursement when
         and as the same shall become due and payable, whether at the due date
         thereof or at a date fixed for prepayment thereof or otherwise;

                  (ii) the Borrower shall fail to pay any interest on any Loan
         or any fee or any other amount (other than an amount referred to in
         clause (i) of this paragraph (a) of this Section 7.01) payable under
         this Agreement or any other Loan Document, when and as the same shall
         become due and payable, and such failure shall continue unremedied for
         a period of three Business Days;

                  (iii) any representation or warranty made or deemed made by or
         on behalf of Allied Waste, the Borrower or any Restricted Subsidiary in
         any Loan Document or any amendment or modification thereof or waiver
         thereunder, or in any report, certificate, financial statement or other
         document furnished pursuant to or in connection with any Loan Document
         or any amendment or modification thereof or waiver thereunder, shall
         prove to have been incorrect in any material respect when made or
         deemed made;

                  (iv) Allied Waste or the Borrower shall fail to observe or
         perform any covenant, condition or agreement contained in Section 5.01
         (with respect to the existence of Allied Waste or the Borrower), 5.05,
         5.10 or 5.18 or in Article VI;

                  (v) any Loan Party shall fail to observe or perform any
         covenant, condition or agreement contained in any Loan Document (other
         than those specified in clause (i), (ii) or (iv) of this paragraph (a)
         of this Section 7.01), and such failure shall continue unremedied for a
         period of 30 days after notice thereof from the Administrative Agent to
         the Borrower (which notice will be given promptly at the request of any
         Lender);

                  (vi) Allied Waste, the Borrower or any Subsidiary shall fail
         to make any payment (whether of principal or interest and regardless of
         amount) in respect of any Material Indebtedness, when and as the same
         shall become due and payable beyond the applicable period of grace, if
         any, provided in the instrument or agreement under which such Material
         Indebtedness was created;

                  (vii) any event or condition occurs (A) that results in any
         Material Indebtedness becoming due prior to its scheduled maturity or
         (B) that enables or permits (with or without the giving of notice, the
         lapse of time or both) the holder or holders of any Material
         Indebtedness or any trustee or agent on its or their behalf to cause
         any Material Indebtedness to become due, or to require the prepayment,
         repurchase, redemption or
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                                                                             121

         defeasance thereof, prior to its scheduled maturity; provided that this
         clause (vii) shall not apply to Indebtedness that becomes due as a
         result of the voluntary sale or transfer of the property or assets of
         the Borrower or any Restricted Subsidiary;

                  (viii) an involuntary proceeding shall be commenced or an
         involuntary petition shall be filed seeking (A) liquidation,
         reorganization or other relief in respect of Allied Waste, the Borrower
         or any Material Loan Party or its debts, or of a substantial part of
         its assets, under any Federal, state or foreign bankruptcy, insolvency,
         receivership or similar law now or hereafter in effect or (B) the
         appointment of a receiver, trustee, custodian, sequestrator,
         conservator or similar official for Allied Waste, the Borrower or any
         Material Loan Party or for a substantial part of its assets, and, in
         any such case, such proceeding or petition shall continue undismissed
         for 90 days or an order or decree approving or ordering any of the
         foregoing shall be entered;

                  (ix) Allied Waste, the Borrower or any Material Loan Party
         shall (A) voluntarily commence any proceeding or file any petition
         seeking liquidation, reorganization or other relief under any Federal,
         state or foreign bankruptcy, insolvency, receivership or similar law
         now or hereafter in effect, (B) consent to the institution of, or fail
         to contest in a timely and appropriate manner, any proceeding or
         petition described in clause (viii) of this Article, (C) apply for or
         consent to the appointment of a receiver, trustee, custodian,
         sequestrator, conservator or similar official for Allied Waste, the
         Borrower or any Material Loan Party or for a substantial part of its
         assets, (D) file an answer admitting the material allegations of a
         petition filed against it in any such proceeding, (E) make a general
         assignment for the benefit of creditors or (F) take any action for the
         purpose of effecting any of the foregoing;

                  (x) Allied Waste, the Borrower or any Material Loan Party
         shall become unable, admit in writing its inability or fail generally
         to pay its debts as they become due;

                  (xi) one or more judgments for the payment of money in an
         aggregate amount in excess of $50,000,000 (subtracting therefrom any
         amount covered by insurance as to which the insurer has acknowledged in
         writing its obligation to cover) shall be rendered against Allied
         Waste, the Borrower, any Material Loan Party or any combination thereof
         and the same shall remain undischarged for a period of 60 consecutive
         days during which execution shall not be effectively stayed, or any
         action shall be legally taken by a judgment creditor to attach or levy
         upon any assets of Allied Waste, the Borrower or any Material Loan
         Party to enforce any such judgment;

                  (xii) an ERISA Event shall have occurred that, in the
         reasonable opinion of the Required Lenders, when taken together with
         all other ERISA Events that have occurred and are then outstanding,
         could reasonably be expected to result in liability
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                                                                             122

         of the Borrower and its Subsidiaries in an aggregate amount exceeding
         $50,000,000 for all periods;

                  (xiii) (A) any Lien purported to be created under any Security
         Document shall cease to be, or shall be asserted by any Loan Party not
         to be, a valid and perfected Lien on any material portion of the
         Collateral, with the priority required by the applicable Security
         Document, except (I) as a result of the sale

         or other disposition of the applicable Collateral in a transaction
         permitted under the Loan Documents or (II) as a result of the
         Collateral Agent's failure to maintain possession of any stock
         certificates, promissory notes or other instruments delivered to it
         under the Security Documents or (B) the Obligations of the Borrower, or
         the obligations of Allied Waste or any Subsidiary pursuant to a
         Guarantee Agreement shall cease to constitute senior indebtedness under
         the subordination provisions of any document or instrument evidencing
         any subordinated Indebtedness existing on the Restatement Effective
         Date or any Permitted Subordinated Debt or such subordination
         provisions shall be invalidated or otherwise cease to be legal, valid
         and binding obligations of the parties thereto, enforceable in
         accordance with their terms;

                  (xiv) a Change in Control shall occur;

                  (xv) an Environmental Claim shall have been asserted against
         any member of the Allied Group or any of their respective Affiliates
         that is reasonably likely to be determined adversely to any member of
         the Allied Group, and the amount thereof (either individually or in the
         aggregate) is reasonably likely to have a Material Adverse Effect (but
         after deducting any portion thereof that is reasonably expected to be
         paid by other creditworthy Persons jointly and severally liable
         therefor); or

                  (xvi) (A)(1) any Subsidiary that is the issuer of any Third
         Party Securities shall fail to pay any principal or any reimbursement
         obligation with respect thereto when and as the same shall become due
         and payable, whether at the due date thereof or at a date fixed for
         prepayment thereof or otherwise, (2) any Subsidiary that is the issuer
         of any Third Party Securities shall fail to pay any interest or any fee
         or other amount with respect thereto, when and as the same shall become
         due and payable, and such failure shall continue unremedied for a
         period of three Business Days or (3) any event or condition occurs that
         results in any Third Party Securities becoming due prior to their
         scheduled maturity date or (B) any event described in clause (viii),
         (ix) or (x) shall occur with respect to any Subsidiary that is the
         issuer of any Third Party Securities;

then, and in every such event (other than an event with respect to the Borrower
described in clause (viii) or (ix) of this paragraph (a) of this Section 7.01),
and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by
notice to the Borrower, take either or both of the following actions, at the
same or different times: (i) terminate the Commitments, and thereupon the
Commitments shall terminate
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                                                                             123

immediately, and (ii) declare the Loans then outstanding to be due and payable
in whole (or in part, in which case any principal not so declared to be due and
payable may thereafter be declared to be due and payable), and thereupon the
principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall become due and payable immediately, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower; and in the case of any event with respect to Allied Waste or the
Borrower described in clause (viii) or (ix) of this paragraph (a) of this
Section 7.01, the Commitments shall automatically terminate and the principal of
the Loans then outstanding, together with accrued interest thereon and all fees
and other obligations of the Borrower accrued hereunder, shall automatically
become due and payable, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrower.

                  SECTION 7.02. Borrower's Right to Cure. (a) Leverage Ratio.
  Notwithstanding anything to the contrary contained in Section 7.01, in the
  event that Allied Waste and the Borrower fail to comply with the requirements
  of Section 6.14 in respect of or as determined with reference to any Rolling
  Period, until the expiration of the 10th Business Day subsequent to the date
  the certificate calculating the Leverage Ratio is required to be delivered
  pursuant to Section 5.04(c), Allied Waste shall have the right to issue
  Permitted Cure Securities for cash or otherwise receive cash contributions to
  the capital of Allied Waste, and, in each case, to apply such cash in
  accordance with Section 2.11(c) (collectively, the "Cure Right"), and upon
  such application by the Borrower of such cash (the "Cure Amount") pursuant to
  the exercise by Allied Waste of such Cure Right the Leverage Ratio shall be
  recalculated giving effect to the following pro forma adjustments;

                  (i) Total Indebtedness shall be decreased in respect of the
         last fiscal quarter of such Rolling Period, solely for the purpose of
         measuring the Leverage Ratio and not for any other purpose under this
         Agreement, by an amount equal to the Cure Amount; and

                  (ii) if, after giving effect to the foregoing recalculation,
         Allied Waste and Borrower shall then be in compliance with the
         requirements of Section 6.14, Allied Waste and the Borrower shall be
         deemed to have satisfied the requirements of Section 6.14 as of the
         relevant date of determination with the same effect as though there had
         been no failure to comply therewith at such date, and the applicable
         breach or default of Section 6.14 which had occurred shall be deemed
         cured for all purposes of the Agreement.

                      (b) Limitation on Exercise of Cure Right. Notwithstanding
anything herein to the contrary, (a) in no event shall Allied Waste be entitled
to exercise the Cure Right in more than three consecutive fiscal quarters, (b)
in any eight fiscal quarter period, there must be a period of at least four
consecutive fiscal quarters during which Allied Waste has not exercised its Cure
Right and (c) each Cure Amount shall be
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                                                                             124

as close as is commercially feasible to the amount required to cure the
applicable failure to comply with Section 6.14.

                                  ARTICLE VIII

                            The Administrative Agent

                  Each of the Lenders and each Issuing Bank hereby irrevocably
appoints the Administrative Agent as its agent and authorizes the Administrative
Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms of the Loan Documents,
together with such actions and powers as are reasonably incidental thereto. For
purposes of this Article VIII, all references to the Administrative Agent are
deemed to include the Collateral Agent and the Collateral Trustee.

                  The bank serving as the Administrative Agent hereunder shall
have the same rights and powers in its capacity as a Lender as any other Lender
and may exercise the same as though it were not the Administrative Agent, and
such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with Allied Waste, the Borrower or any
Subsidiary or any Affiliate of any of the foregoing as if it were not the
Administrative Agent hereunder.

                  The Administrative Agent shall not have any duties or
obligations except those expressly set forth in the Loan Documents. Without
limiting the generality of the foregoing, (a) the Administrative Agent shall not
be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing, (b) the Administrative Agent shall not
have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated by the
Loan Documents that the Administrative Agent is required to exercise in writing
by the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary under the circumstances as provided in Section 9.02) and (c)
except as expressly set forth in the Loan Documents, the Administrative Agent
shall not have any duty to disclose, and shall not be liable for the failure to
disclose, any information relating to Allied Waste, the Borrower or any of the
Subsidiaries that is communicated to or obtained by the bank serving as
Administrative Agent or any of its Affiliates in any capacity. The
Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or such other number
or percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 9.02) or in the absence of its own gross negligence or
wilful misconduct. The Administrative Agent shall not be deemed to have
knowledge of any Default unless and until written notice thereof is given to the
Administrative Agent by Allied Waste, the Borrower or a Lender, as applicable,
and the Administrative Agent shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in
or in connection with any Loan Document, (ii) the contents of any certificate,
report or other document delivered thereunder or in connection therewith, (iii)
the performance or observance of any of the covenants, agreements or other

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                                                                             125

terms or conditions set forth in any Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of any Loan Document or any other
agreement, instrument or document, or (v) the satisfaction of any condition set
forth in Article IV or elsewhere in any Loan Document, other than to confirm
receipt of items expressly required to be delivered to the Administrative Agent.

                  The Administrative Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed
by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon. The Administrative Agent may consult
with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

                  The Administrative Agent may perform any and all of its duties
and exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of the Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

                  Subject to the appointment and acceptance of a successor
Administrative Agent as provided in this paragraph, the Administrative Agent may
resign at any time by notifying the Lenders, the Issuing Banks and the Borrower.
Upon any such resignation, the Required Lenders shall have the right, in
consultation with the Borrower, to appoint a successor. If no successor shall
have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice
of its resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Banks, appoint a successor Administrative Agent which
shall be a bank with an office in New York, New York, or an Affiliate of any
such bank. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties
and obligations hereunder. The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor. After the
Administrative Agent's resignation hereunder, the provisions of this Article and
Section 9.03 shall continue in effect for the benefit of such retiring
Administrative Agent, its sub-agents and their respective Related Parties in
respect of any actions taken or omitted to be taken by any of them while it was
acting as Administrative Agent.

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                                                                             126

                  Each Lender acknowledges that it has, independently and
without reliance upon the Administrative Agent or any other Lender and based on
such documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Loan Document or related agreement or any document furnished hereunder
or thereunder.

                                   ARTICLE IX

                                  Miscellaneous

                  SECTION 9.01. Notices. Except in the case of notices and other
  communications expressly permitted to be given by telephone, all notices and
  other communications provided for herein shall be in writing and shall be
  delivered by hand or overnight courier service, mailed by certified or
  registered mail or sent by telecopy, as follows:

                  (a) if to Allied Waste or the Borrower, to it at 15880 N.
         Greenway--Hayden Loop, Suite 100, Scottsdale, Arizona, 85260, Office of
         the Treasurer, Attention of Treasurer (Telecopy No. (602) 627-2703),
         with a copy to Latham & Watkins LLP, 885 Third Avenue, Suite 1000, New
         York, New York 10022, Attention of Greg Ezring, Esq. (Telecopy No.
         (212) 751-4864);

                  (b) if to the Administrative Agent, to JPMorgan Chase Bank,
         Loan and Agency Services Group, 1111 Fannin, Floor 10, Houston, TX
         77002, Attention of Leah E. Hughes (Telecopy No. (713) 750-2932), with
         a copy to JPMorgan Chase Bank, 270 Park Avenue, New York, NY 10017,
         Attention of Robert Sacks (Telecopy No. (212) 270-6637);

                  (c) if to the Issuing Bank, to it at JPMorgan Chase Bank, Loan
         and Agency Services Group, 1111 Fannin, Floor 10, Houston, TX 77002,
         Attention of Leah E. Hughes (Telecopy No. (713) 750-2932), with a copy
         to JPMorgan Chase Bank, 270 Park Avenue, New York, NY 10017, Attention
         of Robert Sacks (Telecopy No. (212) 270-6637;

                  (d) if to the Swingline Lender, to it at JPMorgan Chase Bank,
         Loan and Agency Services Group, 1111 Fannin, Floor 10, Houston, TX
         77002, Attention of Leah E. Hughes (Telecopy No. (713) 750-2932), with
         a copy to JPMorgan Chase Bank, 270 Park Avenue, New York, NY 10017,
         Attention of Robert Sacks (Telecopy No. (212) 270-6637); and

                  (e) if to any other Lender or Issuing Bank, to it at its
         address (or telecopy number) set forth in its Administrative
         Questionnaire.

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                                                                             127

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.

                  SECTION 9.02. Waivers; Amendments. (a) No failure or delay by
  the Administrative Agent, any Issuing Bank or any Lender in exercising any
  right or power hereunder or under any other Loan Document shall operate as a
  waiver thereof, nor shall any single or partial exercise of any such right or
  power, or any abandonment or discontinuance of steps to enforce such a right
  or power, preclude any other or further exercise thereof or the exercise of
  any other right or power. The rights and remedies of the Administrative Agent,
  any Issuing Bank and the Lenders hereunder and under the other Loan Documents
  are cumulative and are not exclusive of any rights or remedies that they would
  otherwise have. No waiver of any provision of any Loan Document or consent to
  any departure by any Loan Party therefrom shall in any event be effective
  unless the same shall be permitted by paragraph (b) of this Section, and then
  such waiver or consent shall be effective only in the specific instance and
  for the purpose for which given. Without limiting the generality of the
  foregoing, the making of a Loan, the funding of a Tranche A Credit-Linked
  Deposit or issuance of a Letter of Credit shall not be construed as a waiver
  of any Default, regardless of whether the Administrative Agent, any Lender or
  any Issuing Bank may have had notice or knowledge of such Default at the time.

                      (b) Neither this Agreement nor any other Loan Document nor
any provision hereof or thereof may be waived, amended or modified except, in
the case of this Agreement, pursuant to an agreement or agreements in writing
entered into by Allied Waste, the Borrower and the Required Lenders or, in the
case of any other Loan Document, pursuant to an agreement or agreements in
writing entered into by the Administrative Agent and the Loan Party or Loan
Parties that are parties thereto, in each case with the consent of the Required
Lenders; provided that no such agreement shall:

                  (i) increase the Commitment of any Lender without the written
consent of such Lender;

                  (ii) reduce the principal amount of any Loan or LC
Disbursement or reduce the rate of interest thereon, or reduce any fees payable
hereunder, without the written consent of each Lender directly affected thereby;

                  (iii) extend the final maturity of any Loan or LC Disbursement
or extend the date on which the Tranche A Credit-Linked Deposits are required to
be returned in full to the Tranche A Lenders, without the prior written consent
of each Lender directly affected thereby;

                  (iv) extend the scheduled amortization (other than final
maturity) of any Loan or the scheduled date for payment of interest and fees
without the prior written consent of Lenders holding Loans representing at least
80% of the aggregate principal amount of the then outstanding Loans directly
affected thereby;

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                                                                             128

                  (v) accelerate any scheduled amortization (including final
maturity) of any Loan without the prior written consent of Lenders holding Loans
representing at least 80% of the aggregate principal amount of the then
outstanding Loans directly affected thereby;

                  (vi) change Section 2.18(b) or (c) in a manner that would
alter the pro rata sharing of payments among Lenders required thereby, without
the written consent of each Lender;

                  (vii) change any of the provisions of this Section that affect
the Lenders or the definition of "Required Lenders" or any other provision of
any Loan Document specifying the number or percentage of Lenders (or Lenders of
any Class or Tranche A Lenders) required to waive, amend or modify any rights
thereunder or make any determination or grant any consent thereunder, without
the written consent of each Lender (or each Lender of such Class, as the case
may be);

                  (viii) release Allied Waste or any Material Loan Party from
its Guarantee under the applicable Guarantee Agreement (except as expressly
provided in such Guarantee Agreement), or limit its liability in respect of such
Guarantee, without the written consent of each Lender; or

                  (ix) release all or substantially all of the Collateral from
the Liens of the Security Documents, without the written consent of each Lender;

provided further that:

                      (A) no such agreement shall amend, modify or otherwise
              affect the rights or duties of the Administrative Agent, the
              Issuing Banks or the Swingline Lenders without the prior written
              consent of the Administrative Agent, the Issuing Banks or the
              Swingline Lenders, as the case may be; and

                      (B) no such agreement shall effect any waiver, amendment
              or modification that by its terms adversely affects the rights in
              respect of payments or collateral of Lenders participating in any
              Class of Loans or Tranche A Letters of Credit differently from
              those of Lenders participating in other Classes of Loans or
              Tranche A Letters of Credit, without the consent of a majority in
              interest of the Lenders participating in the adversely affected
              Class, or change the relative rights in respect of payments or
              collateral of the Lenders participating in different Classes of
              Loans or Tranche A Letters of Credit without the consent of a
              majority in interest of Lenders participating in each affected
              Class of Loans or Tranche A Letters of Credit;

and provided further, that the Administrative Agent, on the one hand, and, in
the case of this Agreement, Allied Waste and the Borrower or, in the case of any
other Loan Document, the Loan Parties thereto, on the other hand, may, without
the consent of any Lender amend or modify this Agreement or any other Loan
Document, as the case may be:

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                                                                             129
                      (A) to cure any typographical error, so long as such
              amendment or modification does not adversely affect the rights of
              any Lender, any Issuing Bank or the Administrative Agent;

                      (B) to effect the assumption by a successor Person of all
              obligations of the Borrower or any other Loan Party under this
              Agreement and the other Loan Documents in connection with any
              transaction complying with Section 6.06(a);

                      (C) to correct and amplify the description of any property
              subject or intended to be subject to the Lien of the applicable
              Security Document; and

                      (D) to add property to the Collateral as permitted or
              required by the applicable Security Document.

Notwithstanding the foregoing, (i) each of the Incremental Facility Amendment
and the Funded LC Facility Amendment shall become effective in the manner set
forth in Sections 2.21 and 2.22, respectively, and (ii) each of the
Administrative Agent, the Collateral Agent and the Collateral Trustee, as
applicable, shall be permitted to amend (and, at the request of the Borrower,
shall so amend) the Shared Collateral Security Agreement or the Shared
Collateral Pledge Agreement in a manner reasonably satisfactory to the
Administrative Agent, the Collateral Agent or the Collateral Trustee, as the
case may be, without the consent of any other Lender in order to add the holders
of (and the agents with respect to) any Refinancing Indebtedness issued to
refinance Indebtedness secured on the Restatement Effective Date by the Shared
Collateral or Qualifying Senior Secured Indebtedness as secured parties
thereunder.

                  Except as otherwise provided herein or in the Security
Documents, the Administrative Agent shall not consent to terminate any
Guarantee, release any collateral or terminate any Lien under any Security
Document unless such release or termination shall be consented to in writing by
the Required Lenders; provided that: (i) the consent of all Lenders shall be
required to release all or substantially all of the Collateral or release all or
substantially all guarantors under the Guarantee Agreements from the Guarantees,
except upon the termination of all Liens and all Guarantees created by the
Security Documents in accordance with the terms thereof; (ii) no such consent
shall be required to release any Lien covering property subject to an Asset Sale
permitted hereunder and, in the case of an Asset Sale involving the sale of a
Subsidiary Loan Party permitted hereunder, the Guarantee of such Subsidiary Loan
Party, and, upon such a permitted Asset Sale, such property and/or such
Subsidiary Loan Party shall be transferred free and clear of the Lien of the
Security Documents and/or Guarantee, if applicable, without any action on the
part of any party (and each of the Administrative Agent, the Collateral Agent
and the Collateral Trustee, as applicable, is hereby authorized to execute such
releases and other documents, and to take such other action, as the Borrower may
reasonably request to give effect thereto); and (iii) no such consent shall be
required to release any Guarantee of any Restricted Subsidiary in connection
with such Restricted Subsidiary's conversion into an Unrestricted Subsidiary
pursuant to, and in accordance with, Section 6.16 (and each of the
Administrative Agent, the Collateral Agent and the Collateral

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                                                                             130

  Trustee, as applicable, is hereby authorized to execute such releases and
  other documents, and to take such other action, as the Borrower may reasonably
  request in order to give effect to such release).

                  SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The
  Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
  Administrative Agent and its Affiliates and the other Initial Lenders,
  including but not limited to the reasonable expenses incurred in connection
  with due diligence and the reasonable fees, charges and disbursements of a
  single New York counsel for the Administrative Agent and of a single local
  counsel for the Administrative Agent in each applicable jurisdiction, in
  connection with the syndication of the credit facilities provided for herein,
  the preparation and administration (to the extent such administration requires
  the services of an outside counsel or consultant) of the Loan Documents or any
  amendments, modifications or waivers of the provisions thereof (whether or not
  the transactions contemplated hereby or thereby shall be consummated), (ii)
  all reasonable out-of-pocket expenses incurred by any Issuing Bank in
  connection with the issuance, amendment, renewal or extension of any Letter of
  Credit or any demand for payment thereunder and (iii) all out-of-pocket
  expenses incurred by the Administrative Agent, any Issuing Bank or any Lender,
  including the fees, charges and disbursements of a single transactional
  counsel and a single special counsel for the Administrative Agent, the Issuing
  Banks and the Lenders (collectively), in connection with the enforcement or
  protection of its rights in connection with the Loan Documents, including its
  rights under this Section, or in connection with the Loans made or Letters of
  Credit issued hereunder, including all such out-of-pocket expenses incurred
  during any workout, restructuring or negotiations in respect of such Loans or
  Letters of Credit.

                  (b) The Borrower shall indemnify the Administrative Agent, any
Issuing Bank and each Lender, and each Related Party of any of the foregoing
Persons (each such Person being called an "Indemnitee") against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses, including the fees, charges and disbursements of any counsel
entitled to reimbursement pursuant to Section 9.03(a) for any Indemnitee,
incurred by or asserted against any Indemnitee arising out of, in connection
with, or as a result of (i) the execution or delivery of any Loan Document or
any other agreement or instrument contemplated hereby, the performance by the
parties to the Loan Documents of their respective obligations thereunder or the
consummation of the Transactions or any other transactions contemplated hereby,
(ii) any Loan or Letter of Credit or the use of the proceeds therefrom
(including any refusal by any Issuing Bank to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do
not strictly comply with the terms of such Letter of Credit), (iii) any actual
or alleged presence or release of Hazardous Materials on or from any Property or
Former Property (as defined in Section 3.16 hereof), or any Environmental
Liability related in any way to the Borrower or any of its Subsidiaries, or (iv)
any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other
theory and regardless of whether any Indemnitee is a party thereto; provided
that such indemnity shall

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                                                                             131

not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or wilful misconduct of such Indemnitee.

                  (c) To the extent that the Borrower fails to pay any amount
required to be paid by it to the Administrative Agent, any Issuing Bank, the
Collateral Agent (with respect to its activities for the benefit of the Lenders)
or any Swingline Lender under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to the Administrative Agent, and each Lender agrees to
pay to such Issuing Bank, the Collateral Agent or any Swingline Lender, as the
case may be, such Lender's pro rata share (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount; provided that the unreimbursed expense or indemnified loss, claim,
damage, liability or related expense, as the case may be, was incurred by or
asserted against the Administrative Agent, such Issuing Bank or any Swingline
Lender in its capacity as such. For purposes hereof, a Lender's "pro rata share"
shall be determined based upon its share of the sum of the total Revolving
Exposures, Tranche A LC Exposures, outstanding Term Loans and unused Commitments
and unfunded Tranche A Credit-Linked Deposits at the time.

                  (d) To the extent permitted by applicable law, neither Allied
Waste nor the Borrower shall assert, and each hereby waives, any claim against
any Indemnitee, on any theory of liability, for special, indirect, consequential
or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or
instrument contemplated hereby, the Transactions, any Loan or Letter of Credit
or the use of the proceeds thereof.

                  (e) All amounts due under this Section shall be payable not
later than ten days after written demand therefor.

                  SECTION 9.04. Successors and Assigns. (a) Except as expressly
  set forth in Section 9.14(a), the provisions of this Agreement shall be
  binding upon and inure to the benefit of the parties hereto and their
  respective successors and assigns permitted hereby (including any Affiliate of
  any Issuing Bank that issues any Letter of Credit), except that, (i) other
  than in connection with a merger or consolidation permitted by Section 6.06,
  the Borrower may not assign or otherwise transfer any of its rights or
  obligations hereunder without the prior written consent of each Lender (and
  any attempted assignment or transfer by the Borrower without such consent
  shall be null and void) and (ii) no Lender may assign or otherwise transfer
  its rights or obligations hereunder except in accordance with this Section.
  Nothing in this Agreement, expressed or implied, shall be construed to confer
  upon any Person (other than the parties hereto, their respective successors
  and assigns permitted hereby (including any Affiliate of any Issuing Bank that
  issues any Letter of Credit), Participants (to the extent provided in
  paragraph (c) of this Section) and, to the extent expressly contemplated
  hereby, the Related Parties of each of the Administrative Agent, the Issuing
  Banks and the

<PAGE>
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

                  (b) (i) Subject to the conditions set forth in paragraph
(b)(ii) below, any Lender may assign to one or more assignees all or a portion
of its rights and obligations under this Agreement (including all or a portion
of its Commitments and the Loans or Tranche A Credit-Linked Deposits at the time
owing to it) with the prior written consent (such consent not to be unreasonably
withheld) of:

                      (A) the Borrower; provided that no consent of the Borrower
  shall be required for an assignment to a Lender, an Affiliate of a Lender, an
  Approved Fund or, if an Event of Default under clause (i), (ii), (viii) or
  (ix) of Section 7.01 has occurred and is continuing, any other assignee; and

                      (B) the Administrative Agent; provided that no consent of
  the Administrative Agent shall be required for an assignment (1) by a
  Revolving Lender to an assignee that is a Revolving Lender, or (2) by a
  Tranche A Lender or a Term Lender to an assignee that is a Lender or an
  Approved Fund of a Lender.

                  (ii) Assignments shall be subject to the following additional
  conditions:

                      (A) except in the case of an assignment to a Lender, an
  Affiliate of a Lender or an Approved Fund of any Lender, the amount of the
  Commitment of the assigning Lender subject to each such assignment (determined
  as of the date the Assignment and Acceptance with respect to such assignment
  is delivered to the Administrative Agent) shall not be less than $1,000,000
  or, if smaller, the entire remaining amount of the assigning Lender's
  Commitment and outstanding Loans or Tranche A Credit-Linked Deposits unless
  each of the Borrower and the Administrative Agent shall otherwise consent;
  provided (1) that no such consent of the Borrower shall be required if an
  Event of Default under clause (i), (ii), (viii) or (ix) of Section 7.01 has
  occurred and is continuing and (2) in the event of concurrent assignments to
  two or more assignees that are Affiliates of one another, or to two or more
  Approved Funds managed by the same investment advisor or by affiliated
  investment advisors, all such concurrent assignments shall be aggregated in
  determining compliance with this subsection;

                      (B) each partial assignment shall be made as an assignment
  of a proportionate part of all the assigning Lender's rights and obligations
  under this Agreement; provided that this clause shall not be construed to
  prohibit the assignment of a proportionate part of all the assigning Lender's
  rights and obligations in respect of one Class of Commitments, Loans or
  Tranche A Credit-Linked Deposits;

                      (C) the parties to each assignment shall execute and
  deliver to the Administrative Agent an Assignment and Acceptance, together
  with a processing and recordation fee of $3,500; provided that in the event of
  concurrent assignments to two or more assignees that are Affiliates of one
  another, or to two or more Approved Funds managed by the same investment
  advisor or by affiliated investment advisors, only one such fee shall be
  payable;

<PAGE>

                     (D) the assignee, if it shall not be a Lender, shall
  deliver to the Administrative Agent an Administrative Questionnaire; and

                     (E) in the case of an assignment by a Lender to a CLO
  managed by such Lender or by an Affiliate of such Lender, unless such
  assignment (or an assignment to a CLO managed by the same manager or an
  Affiliate of such manager) shall have been approved by the Borrower (the
  Borrower hereby agreeing that such approval, if requested, will not be
  unreasonably withheld or delayed), the assigning Lender shall retain the sole
  right to approve any amendment, modification or waiver of any provision of
  this Agreement, except that the Assignment and Acceptance between such Lender
  and such CLO may provide that such Lender will not, without the consent of
  such CLO, agree to any amendment, modification or waiver described in the
  first proviso to Section 9.02(b) that affects such CLO.

                  (iii) Subject to acceptance and recording thereof pursuant to
  paragraph (b)(iv) of this Section, from and after the effective date specified
  in each Assignment and Acceptance the assignee thereunder shall be a party
  hereto and, to the extent of the interest assigned by such Assignment and
  Acceptance, have the rights and obligations of a Lender under this Agreement,
  and the assigning Lender thereunder shall, to the extent of the interest
  assigned by such Assignment and Acceptance, be released from its obligations
  under this Agreement (and, in the case of an Assignment and Acceptance
  covering all of the assigning Lender's rights and obligations under this
  Agreement, such Lender shall cease to be a party hereto but shall continue to
  be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.03). Any
  assignment or transfer by a Lender of rights or obligations under this
  Agreement that does not comply with this Section 9.04 shall be treated for
  purposes of this Agreement as a sale by such Lender of a participation in such
  rights and obligations in accordance with paragraph (c) of this Section.
  Without the consent of the Borrower (which consent shall not be unreasonably
  withheld) and the Administrative Agent, the Tranche A Credit-Linked Deposit of
  any Tranche A Lender shall not be released in connection with any assignment
  by such Tranche A Lender, but shall instead be purchased by the relevant
  assignee and continue to be held for application (to the extent not already
  applied) in accordance with Section 2.05 to satisfy such assignee's
  obligations in respect of Tranche A LC Disbursements.

                  (iv) The Administrative Agent, acting for this purpose as an
  agent of the Borrower, shall maintain at one of its offices a copy of each
  Assignment and Acceptance delivered to it and a register for the recordation
  of the names and addresses of the Lenders, and the Commitment of, and
  principal amount of the Loans and LC Disbursements owing to, each Lender
  pursuant to the terms hereof from time to time (the "Register"). The entries
  in the Register shall be conclusive absent manifest error, and the Borrower,
  the Administrative Agent, the Issuing Banks and the Lenders may treat each
  Person whose name is recorded in the Register pursuant to the terms hereof as
  a Lender hereunder for all purposes of this Agreement, notwithstanding notice
  to the contrary. The Register shall be available for inspection by the
  Borrower, any Issuing Bank and any Lender, at any reasonable time and from
  time to time upon reasonable prior notice.

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                                                                             134

                  (v) Upon its receipt of a duly completed Assignment and
  Acceptance executed by an assigning Lender and an assignee, the assignee's
  completed Administrative Questionnaire (unless the assignee shall already be a
  Lender hereunder), the processing and recordation fee referred to in paragraph
  (b) of this Section and any written consent to such assignment required by
  paragraph (b) of this Section, the Administrative Agent shall accept such
  Assignment and Acceptance and record the information contained therein in the
  Register. No assignment shall be effective for purposes of this Agreement
  unless it has been recorded in the Register as provided in this paragraph.

                  (vi) By executing and delivering an Assignment and Acceptance,
  the assigning Lender thereunder and the assignee thereunder shall be deemed to
  confirm to and agree with each other and the other parties hereto as follows:
  (i) such assigning Lender warrants that it is the legal and beneficial owner
  of the interest being assigned thereby free and clear of any adverse claim and
  that its Commitment and the outstanding balances of its Loans and Tranche A
  Credit-Linked Deposits and participations in Tranche A Letters of Credit, in
  each case without giving effect to assignments thereof that have not become
  effective, are as set forth in such Assignment and Acceptance; (ii) except as
  set forth in clause (i) above, such assigning Lender makes no representation
  or warranty and assumes no responsibility with respect to any statements,
  warranties or representations made in or in connection with this Agreement or
  any other Loan Document or any other instrument or document furnished pursuant
  hereto or thereto, or the execution, legality, validity, enforceability,
  genuineness, sufficiency or value of any of the foregoing, or the financial
  condition of the Loan Parties or the performance or observance by the Loan
  Parties of any of their obligations under this Agreement or under any other
  Loan Document or any other instrument or document furnished pursuant hereto or
  thereto; (iii) each of the assignee and the assignor represents and warrants
  that it is legally authorized to enter into such Assignment and Acceptance;
  (iv) such assignee confirms that it has received a copy of this Agreement,
  together with copies of any amendments or consents entered into prior to the
  date of such Assignment and Acceptance and copies of the most recent financial
  statements delivered pursuant to Section 5.04 and such other documents and
  information as it has deemed appropriate to make its own credit analysis and
  decision to enter into such Assignment and Acceptance; (v) such assignee will
  independently and without reliance upon the Agents, such assigning Lender or
  any other Lender and based on such documents and information as it shall deem
  appropriate at the time, continue to make its own credit decisions in taking
  or not taking action under this Agreement; (vi) such assignee appoints and
  authorizes the Agents to take such action as agents on its behalf and to
  exercise such powers under this Agreement and the other Loan Documents as are
  delegated to them by the terms hereof and thereof, together with such powers
  as are reasonably incidental thereto; and (vii) such assignee agrees that it
  will perform in accordance with their terms all the obligations that by the
  terms of this Agreement are required to be performed by it as a Lender.

                  (c) (i) Any Lender may, without the consent of the Borrower,
the Administrative Agent, the Issuing Banks or the Swingline Lenders, sell
participations to one or more banks or other entities (a "Participant") in all
or a portion of such Lender's rights and obligations under this Agreement
(including all or a portion of its

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                                                                             135

Commitment and the Loans and Tranche A Credit-Linked Deposits and participations
in Tranche A Letters of Credit owing to it); provided that (A) such Lender's
obligations under this Agreement shall remain unchanged, (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (C) Allied Waste, the Borrower, the Administrative Agent,
the Issuing Banks and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement. Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce the Loan Documents and to approve any amendment,
modification or waiver of any provision of any Loan Document; provided that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 9.02(b) that affects such Participant.
Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 9.08 as
though it were a Lender, provided such Participant agrees to be subject to
Section 2.18(c) as though it were a Lender.

                  (ii) A Participant shall not be entitled to receive any
  greater payment under Section 2.15, 2.16 or 2.17 than the applicable Lender
  would have been entitled to receive with respect to the participation sold to
  such Participant (and, to the extent the Participant receives such payment,
  the applicable Lender shall not be entitled to such amount), unless the sale
  of the participation to such Participant is made with the Borrower's prior
  written consent. A Participant that would be a Foreign Lender if it were a
  Lender shall not be entitled to the benefits of Section 2.17 unless the
  Borrower is notified of the participation sold to such Participant and such
  Participant agrees, for the benefit of the Borrower, to comply with Section
  2.17(e) and 2.17(f) as though it were a Lender.

                  (d) Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section 9.04 shall not apply to
any such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

                  (e) In the event that Standard & Poor's Ratings Group or
Moody's Investors Service, Inc. shall downgrade the long-term certificate of
deposit ratings or long-term senior unsecured debt ratings of any Lender (or the
parent company thereof), and the resulting ratings shall be BBB+ or Baa1 or
lower, then each of the Issuing Banks shall have the right, but not the
obligation, at its own expense, upon notice to such Lender, the Borrower and the
Administrative Agent, to replace (or to request Allied Waste and the Borrower,
at the sole expense of such Issuing Bank, to use their reasonable efforts to
replace) such Lender with respect to such Lender's Revolving Commitment

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                                                                             136

with an assignee (in accordance with and subject to the restrictions contained
in paragraph (b) above), and such Lender hereby agrees to transfer and assign
without recourse (in accordance with and subject to the restrictions contained
in paragraph (b) above) all its interests, rights and obligations in respect of
its Revolving Commitment to such assignee; provided, however, that (i) no such
assignment shall conflict with any law, rule, regulation or order of any
Governmental Authority and (ii) such assignee shall pay to such Lender in
immediately available funds on the date of such assignment the principal of and
interest accrued to the date of payment on the Loans and LC Disbursements of
such Lender hereunder and all other amounts accrued for such Lender's account or
owed to it hereunder.

                  (f) Notwithstanding anything in this Agreement to the
contrary, in the event that (i) the Borrower has requested an amendment, waiver
or consent of the type set forth in clause (i), (ii), (iii), (vi), (vii), (viii)
or (ix) of the first proviso of the first sentence of Section 9.02(b), (ii) such
amendment, waiver or consent has been approved by the Required Lenders and (iii)
no Event of Default shall have occurred and be continuing under clause (i),
(ii), (viii) or (ix) of Section 7.01, the Borrower may, at any time and from
time to time after the Restatement Effective Date, at its sole expense, require
any Lender that does not approve such proposed amendment, waiver or consent (a
"Non-Consenting Lender") to assign and delegate, at par and without recourse,
all of such Non-Consenting Lender's outstanding Loans, unused Commitments,
unreimbursed Tranche A Credit-Linked Deposits and all other interests, rights
and obligations under this Agreement (or, at the option of the Borrower if the
Non-Consenting Lender's consent is required with respect to only one Class of
Loans (or Commitments) or Tranche A Credit-Linked Deposits, to replace only the
Class of Loans or Commitments of such Non-Consenting Lender that gave rise to
the need of such Non-Consenting Lender's consent) to another Lender (other than
a CLO managed by such Non-Consenting Lender or an Affiliate of such
Non-Consenting Lender) or a financial institution selected by the Borrower and
approved by the Administrative Agent (and if a Revolving Commitment is being
assigned, each Issuing Bank and Swingline Lender), which approval shall not be
unreasonably withheld; provided, however, that, prior to or concurrently with
any such assignment becoming effective hereunder, (i) the Borrower shall have
provided written notice to the Non-Consenting Lender and the Administrative
Agent of its intention to effect an assignment pursuant to this Section 9.04(f),
(ii) such assignee shall have agreed to consent to such proposed amendment,
waiver or consent upon becoming a Lender hereunder, (iii) the Administrative
Agent shall acknowledge that such proposed amendment, waiver or consent shall
become effective upon such assignment and approval of such proposed amendment,
waiver or consent by the assignee, (iv) such assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent a duly executed Administrative
Questionnaire, (v) such assignee and the Non-Consenting Lender shall execute and
deliver to the Administrative Agent an Assignment and Acceptance, together with
a processing and recordation fee of $3,500 (it being understood and agreed that
the Borrower may execute and deliver any such Assignment and Acceptance on
behalf of the Non-Consenting Lender) and (vi) such Non-Consenting Lender shall
have received payment of an amount equal to the outstanding principal of its
Loans and participations in LC Disbursements and Swingline Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder,
from the assignee

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                                                                             137

(to the extent of such outstanding principal and accrued interest and fees) or
the Borrower (in the case of all other amounts. In the event that the
Non-Consenting Lender is a Revolving Lender, the Borrower may not compel the
assignment of such Lender's outstanding Revolving Loans and unused Revolving
Commitments to any Term Lender or Tranche A Lender, unless such Term Lender or
Tranche A Lender is also a Revolving Lender. The terms and provisions of clauses
(iii), (iv) and (v) of Section 9.04(b) shall apply to any assignment effected
pursuant to this Section 9.04(f). A Non-Consenting Lender shall not be required
to make any such assignment and delegation pursuant to this Section 9.04(f) if,
prior thereto, as a result of a waiver by such Non-Consenting Lender or
otherwise, the circumstances entitling the Borrower to require such assignment
and delegation cease to apply.

                  SECTION 9.05. Survival. All covenants, agreements,
  representations and warranties made by the Loan Parties in the Loan Documents
  and in the certificates or other instruments delivered in connection with or
  pursuant to this Agreement or any other Loan Document shall be considered to
  have been relied upon by the other parties hereto and shall survive the
  execution and delivery of the Loan Documents and the making of any Loans and
  issuance of any Letters of Credit, regardless of any investigation made by any
  such other party or on its behalf and notwithstanding that the Administrative
  Agent, any Issuing Bank or any Lender may have had notice or knowledge of any
  Default or incorrect representation or warranty at the time any credit is
  extended hereunder, and shall continue in full force and effect as long as the
  principal of or any accrued interest on any Loan or any fee or any other
  amount payable under this Agreement is outstanding and unpaid or any Letter of
  Credit is outstanding and so long as the Commitments have not expired or
  terminated. The provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article
  VIII shall survive and remain in full force and effect regardless of the
  consummation of the transactions contemplated hereby, the repayment of the
  Loans, the return of the Tranche A Credit-Linked Deposits, the expiration or
  termination of the Letters of Credit and the Commitments or the termination of
  this Agreement or any provision hereof.

                  SECTION 9.06. Counterparts; Integration; Effectiveness. This
  Agreement may be executed in counterparts (and by different parties hereto on
  different counterparts), each of which shall constitute an original, but all
  of which when taken together shall constitute a single contract. This
  Agreement, the other Loan Documents, the commitment letters and fee letters
  heretofore entered into with the Initial Lenders relating to the facilities
  contemplated by this Agreement and any separate letter agreements with respect
  to fees payable to the Administrative Agent constitute the entire contract
  among the parties relating to the subject matter hereof and supersede any and
  all previous agreements and understandings, oral or written, relating to the
  subject matter hereof; provided that the Borrower's obligations under such
  commitment letters shall terminate and be superseded by the provisions of the
  Loan Documents on the Restatement Effective Date to the extent specifically
  set forth in such commitment letters. Except as provided in Section 4.01, this
  Agreement shall become effective when it shall have been executed by the
  Administrative Agent and when the Administrative Agent shall have received
  counterparts hereof which, when taken together, bear the signatures of each of
  the other parties hereto, and thereafter shall

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                                                                             138

  be binding upon and inure to the benefit of the parties hereto and their
  respective successors and assigns. Delivery of an executed counterpart of a
  signature page of this Agreement by telecopy shall be effective as delivery of
  a manually executed counterpart of this Agreement.

                  SECTION 9.07. Severability. Any provision of this Agreement
  held to be invalid, illegal or unenforceable in any jurisdiction shall, as to
  such jurisdiction, be ineffective to the extent of such invalidity, illegality
  or unenforceability without affecting the validity, legality and
  enforceability of the remaining provisions hereof; and the invalidity of a
  particular provision in a particular jurisdiction shall not invalidate such
  provision in any other jurisdiction.

                  SECTION 9.08. Right of Setoff. If an Event of Default shall
  have occurred and be continuing, each Lender and each of its Affiliates is
  hereby authorized at any time and from time to time, to the fullest extent
  permitted by law, to set off and apply any and all deposits (general or
  special, time or demand, provisional or final) at any time held and other
  obligations at any time owing by such Lender or Affiliate to or for the credit
  or the account of the Borrower against any of and all the obligations of the
  Borrower now or hereafter existing under this Agreement held by such Lender,
  irrespective of whether or not such Lender shall have made any demand under
  this Agreement and although such obligations may be unmatured.

                  SECTION 9.09. Governing Law; Jurisdiction; Consent to Service
  of Process. (a) This Agreement shall be construed in accordance with and
  governed by the law of the State of New York.

                  (b) Each of Allied Waste and the Borrower hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to any Loan Document, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent
permitted by law, in such Federal court. Each of the parties hereto agrees that
a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this Agreement or any other Loan Document shall
affect any right that the Administrative Agent, any Issuing Bank or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement
or any other Loan Document against Allied Waste, the Borrower or their
respective properties in the courts of any jurisdiction.

                  (c) Each of Allied Waste and the Borrower hereby irrevocably
and unconditionally waives, to the fullest extent it may legally and effectively
do so, any objection which it may now or hereafter have to the laying of venue
of any suit, action or proceeding arising out of or relating to this Agreement
or any other Loan Document

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                                                                             139

in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court.

                  (d) Each party to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 9.01. Nothing
in this Agreement or any other Loan Document will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

                  SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
  HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING
  OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE
  TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
  THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
  ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
  OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
  FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
  HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
  MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

                  SECTION 9.11. Headings. Article and Section headings and the
  Table of Contents used herein are for convenience of reference only, are not
  part of this Agreement and shall not affect the construction of, or be taken
  into consideration in interpreting, this Agreement.

                  SECTION 9.12. Confidentiality. Each of the Administrative
  Agent, the Issuing Banks and the Lenders agrees to maintain the
  confidentiality of the Information (as defined below), except that Information
  may be disclosed (a) to its and its Affiliates' directors, officers, employees
  and agents, including accountants, legal counsel and other advisors (it being
  understood that the Persons to whom such disclosure is made will be informed
  of the confidential nature of such Information and instructed to keep such
  Information confidential), (b) to the extent requested by any regulatory
  authority, (c) to the extent required by applicable laws or regulations or by
  any subpoena or similar legal process, (d) to any other party to this
  Agreement, (e) in connection with the exercise of any remedies hereunder or
  any suit, action or proceeding relating to this Agreement or any other Loan
  Document or the enforcement of rights hereunder or thereunder, (f) subject to
  an agreement containing provisions substantially the same as those of this
  Section, to any assignee of or Participant in, or any prospective assignee of
  or Participant in, any of its rights or obligations under this Agreement, (g)
  to any direct or indirect contractual counterparty to an Interest Rate
  Protection Agreement or such contractual counterparty's professional advisor
  (so long as such contractual counterparty or professional advisor to such
  contractual counterparty agrees to be bound by the provisions of this Section
  9.12), (h) to the National Association of Insurance Commissioners or any
  similar organization, (i) with the consent of the Borrower or (h) to the
  extent such Information (A) becomes publicly available other than as a result
  of a

<PAGE>

                                                                             140

  breach of this Section or (B) becomes available to the Administrative Agent,
  any Issuing Bank or any Lender on a nonconfidential basis from a source other
  than Allied Waste or the Borrower or an Affiliate thereof. For the purposes of
  this Section, "Information" means all information received from Allied Waste
  or the Borrower relating to Allied Waste or the Borrower or its business,
  other than any such information that is available to the Administrative Agent,
  any Issuing Bank or any Lender on a nonconfidential basis prior to disclosure
  by Allied Waste or the Borrower; provided that, in the case of information
  received from Allied Waste or the Borrower after the Restatement Effective
  Date, such information is clearly identified at the time of delivery as
  confidential. Any Person required to maintain the confidentiality of
  Information as provided in this Section shall be considered to have complied
  with its obligation to do so if such Person has exercised the same degree of
  care to maintain the confidentiality of such Information as such Person would
  accord to its own confidential information. Notwithstanding anything herein to
  the contrary or in any other written or oral understanding or agreement to
  which the parties hereto are parties or by which they are bound, the parties
  to this Agreement agree that (i) any obligations of confidentiality contained
  herein and therein do not apply and have not applied from the commencement of
  discussions between the parties to the tax treatment and tax structure of the
  transactions contemplated by the Loan Documents and (ii) each party (and any
  employee, representative or other agent of such party) may disclose to any and
  all persons, without limitation of any kind, the tax treatment and tax
  structure of the transactions contemplated by the Loan Documents and all
  materials of any kind (including opinions or other tax analyses) that are
  provided to it relating to such tax treatment and tax structure, provided that
  tax treatment and tax structure shall not include the identity of any existing
  or future party (or any affiliate of such party) to this Agreement or any
  other Loan Document and provided further that each party recognizes that the
  privilege each has to maintain, in its sole discretion, the confidentiality of
  a communication relating to the transactions contemplated by the Loan
  Documents, including a confidential communication with its attorney or a
  confidential communication with a federally authorized tax practitioner under
  Section 7525 of the Code, is not intended to be affected by the foregoing.

                  SECTION 9.13. Interest Rate Limitation. Notwithstanding
  anything herein to the contrary, if at any time the interest rate applicable
  to any Loan, together with all fees, charges and other amounts which are
  treated as interest on such Loan under applicable law (collectively the
  "Charges"), shall exceed the maximum lawful rate (the "Maximum Rate") which
  may be contracted for, charged, taken, received or reserved by the Lender
  holding such Loan in accordance with applicable law, the rate of interest
  payable in respect of such Loan hereunder, together with all Charges payable
  in respect thereof, shall be limited to the Maximum Rate and, to the extent
  lawful, the interest and Charges that would have been payable in respect of
  such Loan but were not payable as a result of the operation of this Section
  shall be cumulated and the interest and Charges payable to such Lender in
  respect of other Loans or periods shall be increased (but not above the
  Maximum Rate therefor) until such cumulated amount, together with interest
  thereon at the Federal Funds Effective Rate to the date of repayment, shall
  have been received by such Lender.

<PAGE>

                                                                             141

                  SECTION 9.14. Securitization Vehicles. (a) Each Lender, the
  Administrative Agent, the Collateral Agent and the Collateral Trustee agrees
  that, prior to the date that is one year and one day after the payment in full
  of all the obligations in respect of any Third Party Securities, (i) the
  Collateral Agent and other Secured Parties shall not be entitled, whether
  before or after the occurrence of any Event of Default, to (A) institute
  against, or join any other Person in instituting against, any Securitization
  Vehicle any bankruptcy, reorganization, arrangement, insolvency or liquidation
  proceeding under the laws of the United States or any State thereof, (B)
  transfer and register the capital stock of any Securitization Vehicle or any
  other instrument evidencing any Seller's Retained Interest in the name of a
  Secured Party or any designee or nominee of a Secured Party, (C) foreclose
  such security interest regardless of the bankruptcy or insolvency of any Loan
  Party, (D) exercise any voting rights granted or appurtenant to such capital
  stock of any Securitization Vehicle or any other instrument evidencing any
  Seller's Retained Interest or (E) enforce any right that the holder of any
  such capital stock of any Securitization Vehicle or any other instrument
  evidencing any Seller's Retained Interest might otherwise have to liquidate,
  consolidate, combine, collapse or disregard the entity status of such
  Securitization Vehicle and (ii) the Collateral Agent and other Secured Parties
  hereby waive and release any right to require (A) that any Securitization
  Vehicle be in any manner merged, combined, collapsed or consolidated with or
  into any Loan Party, including by way of substantive consolidation in a
  bankruptcy case or (B) that the status of any Securitization Vehicle as a
  separate entity be in any respect disregarded; provided, however, that the
  provisions of this Section 9.14 shall cease to be of any force or effect when
  the Obligations have been paid in full and the Revolving Commitments have been
  terminated or expired; and provided further, that the provisions hereof will
  not apply to a Lender, the Administrative Agent, the Collateral Agent or the
  Collateral Trustee in its capacity as a holder of Third Party Securities; and
  provided, further, however, that the provisions of this Section 9.14 shall not
  limit any of the rights of any Lender or other Secured Party, or the ability
  of such Person to exercise any such rights, under any agreement evidencing any
  Securitization or under any Third Party Security. Each Lender, the
  Administrative Agent and the Collateral Agent agree and acknowledge that the
  agent acting on behalf of the holders of Third Party Securities is an express
  third party beneficiary with respect to this Section 9.14(a) (and only this
  Section 9.14(a)) and such agent shall have the right to enforce compliance by
  the Secured Parties with this Section.

                  (b) Upon the transfer or purported transfer by the Borrower or
any Restricted Subsidiary of Securitization Assets to a Securitization Vehicle
in a Securitization permitted by Sections 6.05 and 6.06, the Liens with respect
to such Securitization Assets under the Security Documents shall automatically
be released (and each of the Administrative Agent and the Collateral Agent, as
applicable, is hereby authorized to execute and enter into any such releases and
other documents as the Borrower may reasonably request in order to give effect
thereto).

<PAGE>

                                                                             142

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

                                              ALLIED WASTE INDUSTRIES, INC.,

                                               by
                                                 _______________________________
                                                   Name:
                                                   Title:

                                              ALLIED WASTE NORTH AMERICA, INC.,

                                               by
                                                 _______________________________
                                                   Name:
                                                   Title:

                                              JPMORGAN CHASE BANK, individually
                                              and as administrative agent,
                                              collateral agent and collateral
                                              trustee,

                                               by
                                                 _______________________________
                                                   Name:
                                                   Title:

                                              CITICORP NORTH AMERICA, INC.,
                                              individually and as syndication
                                              agent,

                                               by
                                                 _______________________________
                                                   Name:
                                                   Title:

                                              UBS WARBURG LLC, individually and
                                              as co-documentation agent,

                                               by
                                                 _______________________________
                                                   Name:
                                                   Title:

                                               by
                                                 _______________________________
                                                   Name:
                                                   Title:

<PAGE>

                                                                             143

                                              CREDIT SUISSE FIRST BOSTON, ACTING
                                              THROUGH ITS CAYMAN ISLANDS BRANCH,
                                              individually and as
                                              co-documentation agent,

                                               by
                                                 _______________________________
                                                   Name:
                                                   Title:

                                               by
                                                 _______________________________
                                                   Name:
                                                   Title:

                                              DEUTSCHE BANK AG CAYMAN ISLANDS
                                              BRANCH,

                                               by
                                                 _______________________________
                                                   Name:
                                                   Title:

                                               by
                                                 _______________________________
                                                   Name:
                                                   Title:

<PAGE>

                                              SIGNATURE PAGE TO THE ALLIED WASTE
                                                   CREDIT AGREEMENT DATED AS OF
                                                      JULY 21, 1999 AND AMENDED
                                              AND RESTATED AS OF APRIL 29, 2003

                      Name of Institution: _____________________________________
                                              by

                                                ________________________________
                                                   Name:
                                                   Title:<PAGE>

                                                                    Exhibit 10.4

                                                       A&O Draft: April 29, 2003
                                                            Counterpart No.

                              AMENDED AND RESTATED
                                 LEASE AGREEMENT

                              DATED MAY ____, 2003

                                     Between

                        FIRST STATES INVESTORS 3500, LLC
                                   as Lessor,

                                       and

                              BANK OF AMERICA, N.A.
                                    as Lessee

                         Office Buildings Located in the
                           Southeastern United States

TO THE EXTENT THAT THIS AMENDED AND RESTATED LEASE AGREEMENT CONSTITUTES CHATTEL
PAPER (AS SUCH TERM IS DEFINED IN THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN
ANY APPLICABLE JURISDICTION), NO SECURITY INTEREST IN THIS AMENDED AND RESTATED
LEASE AGREEMENT MAY BE CREATED THROUGH THE TRANSFER OR POSSESSION OF ANY
COUNTERPART OTHER THAN ORIGINAL COUNTERPART NO. 1 THAT CONTAINS THE RECEIPT
THEREFOR EXECUTED BY WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, AS
INDENTURE TRUSTEE, ON OR FOLLOWING THE SIGNATURE PAGE THEREOF.

                                 ALLEN & OVERY
                                    New York

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
Section                                                                                                 Page
<S>                                                                                                     <C>
1.    DEFINITIONS.....................................................................................     1
2.    LEASE OF THE PROPERTIES; RESTATEMENT............................................................     1
      2.1      Ownership and Lease....................................................................     1
      2.2      Demise and Lease.......................................................................     1
      2.3      Restatement............................................................................     2
3.    RENT; FMV LEASE.................................................................................     2
      3.1      Basic Rent; FMV Lease..................................................................     2
      3.2      Supplemental Rent......................................................................     4
      3.3      Method of Payment......................................................................     4
      3.4      Late Payment...........................................................................     5
      3.5      Net Lease; No Setoff; Etc..............................................................     5
      3.6      Limitations on Rent....................................................................     6
4.    RECOMPUTATIONS..................................................................................     6
      4.1      Adjustments............................................................................     6
      4.2      Methodology for Adjustments............................................................     7
      4.3      Supplements............................................................................     7
5.    RENEWAL OPTIONS.................................................................................     7
      5.1      Renewal Options........................................................................     7
      5.2      Lease Provisions Applicable............................................................     8
6.    EARLY TERMINATION;..............................................................................     9
      6.1      Early Termination Options..............................................................     9
      6.2      Obsolescence Termination...............................................................    12
      6.3      Effect of Termination..................................................................    14
      6.4      Adjustment of Termination Percentages..................................................    14
      6.5      Demising Work..........................................................................    15
      6.6      Sublessee Options......................................................................    16
7.    CONDITION AND USE OF PROPERTIES.................................................................    16
      7.1      Waivers................................................................................    16
8.    LIENS; TAXES....................................................................................    17
      8.1      Liens..................................................................................    17
      8.2      Taxes..................................................................................    18
9.    MAINTENANCE AND REPAIR; ALTERATIONS, MODIFICATIONS AND ADDITIONS................................    19
      9.1      Maintenance and Repair.................................................................    19
      9.2      Alterations............................................................................    20
      9.3      Title to Alterations...................................................................    23
      9.4      Permitted Contests.....................................................................    23
      9.5      Environmental Compliance...............................................................    24
10.   USE AND LOCATION................................................................................    24
      10.1     Location...............................................................................    24
      10.2     Use....................................................................................    25
11.   INSURANCE.......................................................................................    25
      11.1     Coverage...............................................................................    25
      11.2     Policy Provisions......................................................................    27
      11.3     Evidence of Insurance..................................................................    28
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                       <C>
12.   RETURN OF LEASED PROPERTY.......................................................................    28
13.   ASSIGNMENT......................................................................................    29
14.   LOSS, DESTRUCTION, CONDEMNATION OR DAMAGE.......................................................    29
      14.1     Payment of Stipulated Loss Value on an Event of Loss...................................    29
      14.2     Application of Payments When Lease Continues...........................................    31
      14.3     Payment of Stipulated Loss Value on an Event of Taking.................................    32
      14.4     Application of Certain Payments Not Relating to an Event of Taking.....................    33
      14.5     Other Dispositions.....................................................................    33
      14.6     Negotiations...........................................................................    33
      14.7     No Rent Abatement......................................................................    33
      14.8     Investment.............................................................................    33
15.   INTEREST CONVEYED TO LESSEE.....................................................................    34
16.   SUBLEASE........................................................................................    34
      16.1     Sublease Requirements..................................................................    34
      16.2     Assignment of Subleases................................................................    37
      16.3     Sublessor Improvements.................................................................    37
17.   INSPECTION, REPORTS AND NOTICES.................................................................    38
      17.1     Inspection.............................................................................    38
      17.2     Reports................................................................................    38
      17.3     Notices from Governmental Authorities..................................................    38
18.   LEASE EVENTS OF DEFAULT.........................................................................    38
19.   ENFORCEMENT.....................................................................................    40
      19.1     Remedies...............................................................................    40
      19.2     Survival of the Lessee's Obligations...................................................    42
      19.3     Remedies Cumulative; No Waiver; Consents...............................................    43
20.   RIGHT TO PERFORM FOR THE LESSEE.................................................................    43
21.   MISCELLANEOUS...................................................................................    43
      21.1     Binding Effect; Successors and Assigns; Survival.......................................    43
      21.2     Quiet Enjoyment........................................................................    44
      21.3     Notices................................................................................    44
      21.4     Severability...........................................................................    44
      21.5     Amendment; Complete Agreements.........................................................    44
      21.6     Headings...............................................................................    44
      21.7     Counterparts...........................................................................    45
      21.8     Governing Law..........................................................................    45
      21.9     Apportionments.........................................................................    45
      21.10    Discharge of the Lessee's Obligations by its Sublessees................................    45
      21.11    Nature of Lessor's Obligations.........................................................    45
      21.12    Estoppel Certificates..................................................................    45
      21.13    Granting of Easements..................................................................    46
      21.14    No Joint Venture.......................................................................    47
      21.15    No Accord and Satisfaction.............................................................    47
      21.16    No Merger..............................................................................    47
      21.17    Investment of Funds....................................................................    47
      21.18    True Lease.............................................................................    47
</TABLE>

<PAGE>

Appendix A     Definitions

Exhibit A      Form of FMV Lease
Exhibit B      Form of Sublease
Exhibit C      Form of Bank Branch Lease
Exhibit D      Form of Subordination, Non-Disturbance And Attornment Agreement
Exhibit E      Form of AFR Sublease
Exhibit F      Form of Partial Occupancy Lease
Schedule 1     Stipulated Loss Value
Schedule 2     Section 9.2(d) Dates
Schedule 3     Land and Improvement Description and Lessor's Cost
Schedule 4     Basic Rent

<PAGE>

AMENDED AND RESTATED LEASE AGREEMENT (this Lease) dated as of May ____, 2003

BETWEEN:

(1)    FIRST STATES INVESTORS 3500, LLC (the Lessor); and

(2)    BANK OF AMERICA, N.A., a national banking association, as the lessee (the
       Lessee).

WHEREAS

(A)    the Lessee (as successor to Nationsbank, N.A.) was a party to each of (i)
       that certain Lease Agreement (1997-C) dated as of June 4, 1997 (Lease C)
       with State Street Bank and Trust Company of Connecticut, National
       Association, as owner trustee, and Traci Hopkins, as co-trustee (together
       the C Lessor) and (ii) that certain Lease Agreement (1997-D) dated as of
       June 4, 1997 (Lease D) with State Street Bank and Trust Company of
       Connecticut, National Association, as owner trustee, and Traci Hopkins,
       as co-trustee, (together, the D Lessor);

(B)    the Lessor has acquired (i) all interest of the C Lessor in the
       Properties and in Lease C, (ii) all interest of the D Lessor in the
       Properties and in Lease D, and (iii) all interest of each of REMAN
       1997-C, Inc. and REMAN 1997-D, Inc. in the Properties; and

(C)    the Lessor and the Lessee wish to amend and restate both of Lease C and
       Lease D in this Lease.

In consideration of the mutual agreements herein contained and other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
hereto, intending to be legally bound, hereby agree as follows:

1.     DEFINITIONS

       The capitalized terms used herein and not otherwise defined shall have
       the meanings assigned thereto in Appendix A hereto for all purposes
       hereof.

2.     LEASE OF THE PROPERTIES; RESTATEMENT

2.1    Ownership and Lease

       The parties acknowledge that this Lease constitutes a lease of, and
       creates in the Lessee as described in Section 2.2 a leasehold estate in
       and to the Properties.

2.2    Demise and Lease

       Since the Original Closing Date the Lessor's predecessors in interest
       have demised and leased, and on the Closing Date, the Lessor shall
       continue to demise and lease, all of its right, title and interest in and
       to the Properties listed in Schedule 3 hereto to the Lessee, and since
       the Original Closing Date the Lessee has rented and leased, and on the
       Closing Date the Lessee shall continue to rent and lease, the respective
       Properties from the Lessor, for the Basic Term and, subject to the
       exercise by the Lessee of its renewal options as provided in and in
       accordance with Article 5 hereof, for the Renewal Terms, unless earlier
       terminated in accordance with the provisions of this Lease. The Lessee
       may from time to time own or hold under lease from Persons other than the

                                       1

<PAGE>

       Lessor, furniture, trade fixtures, equipment and other personalty located
       on or about the Properties that are not subject to this Lease. The Lessor
       shall from time to time, upon the reasonable request of the Lessee, at
       the Lessee's expense, promptly acknowledge in writing to the Lessee or
       other Persons that the Lessor does not own or have any other right or
       interest in or to such furniture, trade fixtures, personalty and
       equipment. The demise and lease of the Properties pursuant to this
       Article 2 shall include any additional right, title or interest in the
       Properties which may at any time be acquired by the Lessor.

2.3    Restatement

       The Original Leases are hereby amended and restated by this Lease without
       any interruption and with all rights and obligations accruing prior to
       the date hereof continuing after the date hereof under this Lease.

3.     RENT; FMV LEASE

3.1    Basic Rent; FMV Lease

(a)    Lessee shall pay to Lessor Basic Rent for the Properties subject to this
       Lease equal to the sum of the Scheduled Basic Rent and the Additional
       Basic Rent. Scheduled Basic Rent shall equal on each Rent Payment Date
       during the Basic Term the amounts for the periods shown in Schedule 4
       hereto (which amounts shall be subject to adjustment pursuant to Article
       4 hereof). If for any reason a Property is terminated from this Lease
       pursuant to a Terminating Event, Scheduled Basic Rent on and after the
       date of such termination shall be (x) the Scheduled Basic Rent as in
       effect just prior to such termination less an amount calculated by
       multiplying (y) such Scheduled Basic Rent by a fraction (z) the numerator
       of which is the Lessor's Cost of such Property and the denominator of
       which is Assumed Lessor's Cost.

(b)    The Scheduled Basic Rent amounts set forth on Schedule 4 hereto have been
       computed based on the assumption, inter alia, that the Lessee will elect
       to terminate this Lease (or exercise its option to sublease pursuant to
       Section 6.1(f)) with respect to certain Properties at the earliest dates
       and in the highest percentages permitted in accordance with Section
       6.1(a) hereof. Should the Lessee not so elect, or elect to terminate this
       Lease (or exercise its option to sublease pursuant to Section 6.1(f))
       with respect to some Properties but less than the maximum percentages set
       forth in such Section 6.1(a) on an Anniversary, then Basic Rent payable
       on each Rent Payment Date (which for this purpose means every date shown
       on Schedule 4 hereto after such Anniversary and for such period of time
       as there remain more Properties subject to this Lease (and not subject to
       a sublease pursuant to Section 6.1(f)) than the Lessee is permitted to
       terminate pursuant to Section 6.1(a)), including the Basic Rent due on
       the Rent Payment Date on which such Property is terminated, shall be
       increased by one twelfth of the Average Annual Rent Factor multiplied by
       the cumulative amount of Lessor's Cost of the Properties (or portion
       thereof) permitted by Section 6.1(a) of this Lease to be terminated (or
       so subleased) under this Lease as of such Rent Payment Date, but not then
       so terminated (or so subleased) (such increase being referred to as
       Additional Basic Rent).

(c)    In the event Lessee is permitted under Section 6.1(a) of this Lease to
       terminate this Lease as to one or more Properties, but Lessee has not
       elected to do so, Lessee may, subject to the terms of Section 3.1(d), by
       notice to Lessor at least 180 days prior to any Anniversary, terminate
       such Property or Properties from this Lease (any Properties so
       terminated, the FMV Properties), in which event, effective as of such
       Anniversary, (i) the FMV Properties will be terminated from this Lease,
       (ii) a Termination Transferee, and Lessee shall enter into a FMV Lease
       with respect to

                                       2

<PAGE>

       such FMV Properties or, subject to Section 3.1(f), portions thereof, and
       (iii) the Basic Rent for each such FMV Property (or portion thereof)
       shall (from and after such Anniversary during the remainder of the Basic
       Term and any Renewal Term under the applicable FMV Lease) be equal to the
       Fair Market Rental Value of such FMV Property (or portion thereof). Such
       notice may be revoked by the Lessee for any reason up to 60 days prior to
       such Anniversary. Each FMV Lease shall be for a term selected by the
       Lessee which is not less than five, nor more than ten years, and at the
       end of such term may be terminated or renewed with rent calculations as
       described above in this paragraph. FMV Properties shall be considered to
       have been terminated from this Lease for purposes of determining whether
       or not the Total Joint Maximum Cumulative Percentages set forth in
       Section 6.1(a) have been exceeded and for purposes of Section 3.1(a) and
       (b), it being understood that Properties with respect to which a
       termination notice has been so revoked shall not be considered to have
       been so terminated from this Lease for such purposes. For the avoidance
       of doubt, the Basic Rent amounts payable on any Rent Payment Date shall
       not be reduced in connection with or as a result of any termination of
       one or more FMV Properties from this Lease. At any time between 360 days
       and 180 days before an Anniversary the Lessee may initiate the Appraisal
       Procedure to determine the Fair Market Rental Value for one or more
       Properties (or any portion thereof) to assist the Lessee in determining
       whether to enter into a FMV Lease with respect thereto and the Lessor
       shall cooperate with such request.

(d)    If this Lease is terminated as to a Property pursuant to Section 3.1(c)
       at a time when the Security Documents are in effect and at a time when
       such Property shall be released from the Lien of the Security Documents
       in accordance with Section 11.01 of the Indenture or with the written
       consent of the Indenture Trustee, upon such termination, such Property
       shall be transferred by the Lessor to a Termination Transferee, in all
       cases at the cost and expense of the Lessor (but with Transfer and
       similar taxes being apportioned between Lessor and Lessee if the transfer
       is to the Recourse Guarantor or an Affiliate of the Recourse Guarantor
       with Lessee paying such portion of the Transfer and similar taxes as are
       determined by multiplying such taxes by a fraction, the numberator of
       which is the Lessor's Cost of the portion of the FMV Property subject to
       the FMV Lease and the denominator of which is the total Lessor's Cost of
       the FMV Property). When an FMV Property is terminated from this Lease, so
       long as no Special Default or Lease Event of Default is continuing at the
       time of such termination, it shall become subject to a FMV Lease between
       a Termination Transferee and the Lessee. The Lessee and, as a condition
       to such transfer, such Termination Transferee shall execute and deliver,
       subject to satisfaction of the conditions set forth in paragraph (e)
       below, an FMV Lease for each such FMV Property (or, subject to Section
       3.1(f), a portion thereof selected by the Lessee) prior to the
       commencement of the FMV Lease Term.

(e)    As a condition to a Termination Transferee entering into an FMV Lease,
       the Lessee shall deliver to such Termination Transferee (i) an opinion of
       an in-house counsel to Lessee regarding such FMV Lease of the same scope
       as that delivered on the Original Closing Date and (ii) an Officer's
       Certificate that no Lease Event of Default or Special Default is
       continuing.

(f)    A portion of any Property (as opposed to such Property in its entirety)
       can only be included as a FMV Property if (i) such portion consists of
       one or more entire floors of the relevant Property and does not include
       any partial floors and (ii) the Security Documents are no longer in
       effect or the relevant Property shall from and after the date of the
       proposed FMV Lease be released from the Lien of the Security Documents in
       accordance with Section 11.01 of the Indenture or with the written
       consent of the Indenture Trustee.

                                       3

<PAGE>

(g)    In the event that a FMV Lease with respect to a portion of a Property can
       not be entered into as a result of the failure of the conditions set
       forth in Section 3.1(f)(ii) to be satisfied, this Lease will not be
       terminated with respect to such Property pursuant to Section 3.1(c) and
       the Lessee shall have the option to sublease the portion of such Property
       which the Lessee did not wish to lease pursuant to the proposed FMV
       Lease, to a Termination Transferee selected by the Lessor (which must
       either be the Recourse Guarantor or an Affiliate of the Recourse
       Guarantor) and the Lessor shall permit such sublease pursuant to an AFR
       Sublease. Any portion of a Property subleased to a Termination Transferee
       pursuant to an AFR Sublease shall be considered to have been terminated
       from this Lease for purposes of determining whether or not the Total
       Joint Maximum Cumulative Percentages in Section 6.1(a) have been exceeded
       and for purposes of Section 3.1(a) and (b).

3.2    Supplemental Rent

       The Lessee shall pay to the Lessor, or to whomever shall be entitled
       thereto as expressly provided herein or in any other Operative Document
       to which the Lessee is a party, any and all Supplemental Rent promptly as
       the same shall become due and payable and in the event of any failure on
       the part of the Lessee timely to pay any Supplemental Rent (taking into
       account any applicable notice and cure period requirements), the Lessor
       shall have all of the same rights, powers and remedies as are provided
       for herein or by law or in equity or otherwise in the case of nonpayment
       of Basic Rent. All Supplemental Rent to be paid pursuant to this Section
       3.2 shall be payable in the type of funds and in the manner set forth in
       Section 3.3. As further Supplemental Rent, Lessee shall pay the
       Redemption Premium arising as the result of the prepayment of any Secured
       Note pursuant to clauses (b), (c), (d) or (f) of Section 2.04 of the
       Indenture, if any, when due and payable under the Security Documents.

3.3    Method of Payment

       Basic Rent and Supplemental Rent (to the extent payable to the Lessor)
       shall be paid to the Lessor at the place in the United States specified
       by the Lessor. Payments to the Lessor shall be made to Lessor's Account
       No. _______________ at ______________________________, ABA#
       _______________, DDA# _______________, Attn: _______________, FBO:
       _______________, which location may be changed from time to time by at
       least ten (10) Business Days' prior written notice from the Lessor;
       provided, that (x) until the Lien of the Security Documents has been
       discharged in accordance with Section 11.01 of the Indenture or the terms
       of the Maryland Security Documents, as applicable, except as provided in
       the following clause (y), all Rent shall be payable directly to the
       Indenture Trustee at such account in the United States as specified in
       writing by the Indenture Trustee pursuant to the terms of the Indenture
       and (y) Excepted Payments shall be payable directly to the Person
       entitled thereto. Each payment of Rent shall be made by the Lessee in
       funds consisting of lawful currency of the United States of America which
       shall be immediately available prior to 11:00 a.m. New York City time on
       the scheduled date when such payment shall be due, unless such scheduled
       date shall not be a Business Day, in which case such payment shall be
       made on the next succeeding Business Day, with the same force and effect
       as though made on such scheduled date and (provided such payment is made
       on such next succeeding Business Day) no interest shall accrue on the
       amount of such payment from and after such scheduled date to the time of
       such payment on such next succeeding Business Day.

                                       4

<PAGE>

3.4    Late Payment

       If any Rent shall not be paid when due, the Lessee shall pay to the
       Lessor (or, in the case of Supplemental Rent, to whomever shall be
       entitled thereto) as Supplemental Rent, interest (to the maximum extent
       permitted by law) on such overdue amount from and including the due date
       thereof to but excluding the Business Day of payment thereof (unless such
       payment shall be made after 11:00 a.m. New York City time, on such date
       of payment, in which case such date of payment shall be included) at the
       Overdue Rate. If any Rent shall be paid on the date when due, but after
       11:00 a.m. New York City time, interest shall be payable as aforesaid for
       one day.

3.5    Net Lease; No Setoff; Etc.

       This Lease is a net lease and, notwithstanding any other provision of
       this Lease or any other Operative Document, it is intended that Basic
       Rent and Supplemental Rent and any other amounts payable hereunder shall
       be paid without, and the rights of the Lessor in and to all such amounts
       shall not be subject to, counterclaim, setoff, deduction or defense and
       without abatement, suspension, deferment, diminution or reduction, and
       the Lessee's obligation to pay all such amounts, throughout the Basic
       Term and all applicable Renewal Terms, is absolute and unconditional.
       Except to the extent otherwise expressly specified in Article IX of the
       Participation Agreement or in Sections 4.1, 19.1(c), 19.1(d), 19.1(e) or
       19.1(f) or Article 6 or 14 of this Lease, the obligations and liabilities
       of the Lessee hereunder shall in no way be released, discharged or
       otherwise affected for any reason, including without limitation: (a) any
       defect in the condition, merchantability, design, quality or fitness for
       use of the Properties or any part thereof or any failure of the
       Properties to comply with plans and specifications, or the failure of the
       Properties or any part thereof or the plans and specifications to comply
       with all Applicable Laws and Regulations, including any inability to
       occupy or use the Properties or any part thereof by reason of such
       noncompliance; (b) any damage to, removal, abandonment, salvage, loss,
       scrapping or destruction of or any requisition or taking of the
       Properties or any part thereof or any environmental conditions on the
       Properties including the presence of Hazardous Materials at, on or under
       the Properties or any part thereof or any property in the vicinity of the
       Properties; (c) any restriction, prevention or curtailment of or
       interference with any use of the Properties or any part thereof including
       eviction; (d) any defect in title to or rights to the Properties or any
       part thereof or any Lien on such title or rights or on the Properties or
       any part thereof; (e) any change, waiver, extension, indulgence or other
       action or omission or breach in respect of any obligation or liability of
       or by the Lessor, the Indenture Trustee or any other Person; (f) any
       bankruptcy, insolvency, reorganization, composition, adjustment,
       dissolution, liquidation or other like proceedings relating to the
       Lessee, the Lessor, the Indenture Trustee or any other Person, or any
       action taken with respect to this Lease by any trustee or receiver of the
       Lessee, the Lessor, the Indenture Trustee or any other Person, or by any
       court, in any such proceeding; (g) any claim that the Lessee has or might
       have against any Person, including without limitation the Lessor, any
       vendor, manufacturer, contractor of or for any Improvement or the
       Indenture Trustee; (h) any failure on the part of the Lessor to perform
       or comply with any of the terms of this Lease, any other Operative
       Document or of any other agreement whether or not related to the Overall
       Transaction; (i) any invalidity or unenforceability or disaffirmance of
       this Lease against or by the Lessee or any provision hereof or any of the
       other Operative Documents or any provision of any thereof; (j) the
       impossibility of performance by any one or more of the Lessee, the
       Lessor, or any other Person; (k) any action by any court, administrative
       agency or other Governmental Authority; (l) any claim by any Person based
       upon a failure to record this Lease (or any memorandum or short form
       agreement with respect to this Lease) or the Indenture or to file

                                       5

<PAGE>

       precautionary financing statements with respect to the Lease in the State
       of Maryland, including any termination or attempted termination of the
       Lessee's rights to possession of any or all of the Properties located in
       such state in connection with the assertion of such claim; or (m) any
       other occurrence whatsoever, whether similar or dissimilar to the
       foregoing, whether or not the Lessee shall have notice or knowledge of
       any of the foregoing. Except as specifically set forth in Article 6 or 14
       of this Lease or Article IX of the Participation Agreement, this Lease
       shall be noncancelable by the Lessee for any reason whatsoever and,
       except as expressly provided in Section 4.1 or Article 6 or 14 of this
       Lease or Article IX of the Participation Agreement, the Lessee, to the
       extent permitted by Applicable Laws and Regulations, waives all rights
       now or hereinafter conferred by Applicable Laws and Regulations or
       otherwise to quit, terminate or surrender this Lease, or to any
       diminution, abatement or reduction of Rent payable by the Lessee
       hereunder. If for any reason whatsoever this Lease shall be terminated in
       whole or in part by operation of law or otherwise except as expressly
       provided in Section 19.1(a), 19.1(c), 19.1(d), 19.1(e), 19.1(f) or
       Article 6 or 14 of this Lease or Article IX of the Participation
       Agreement, the Lessee shall, unless prohibited by Applicable Laws and
       Regulations, nonetheless pay to the Indenture Trustee (if the Security
       Documents are still in effect or, if not, to the Lessor) (or, in the case
       of Supplemental Rent, to whomever shall be entitled thereto) an amount
       equal to each Rent payment at the time and in the manner that such
       payment would have become due and payable under the terms of this Lease
       if it had not been terminated in whole or in part, and in such case, so
       long as such payments are made and no Lease Event of Default shall have
       occurred and be continuing, the Lessor will deem this Lease to have
       remained in effect.

3.6    Limitations on Rent

       Notwithstanding anything in this Lease to the contrary, (a) at each time
       when Stipulated Loss Value is payable by the Lessee pursuant to this
       Lease, the sum of the following amounts shall be at least sufficient to
       pay in full the aggregate unpaid principal amount then due on the
       Outstanding Notes plus accrued interest and Redemption Premium (arising
       as the result of the prepayment of any Secured Note pursuant to clauses
       (b), (c), (d) or (f) of Section 2.04 of the Indenture), if any, due
       thereon at such time: (i) Stipulated Loss Value payable under this Lease
       at such time, (ii) all Basic Rent accrued and payable under this Lease at
       such time, and (iii) all other amounts unconditionally payable by the
       Lessee under this Lease in connection with such payment of Stipulated
       Loss Value on or prior to the date for payment thereof; and (b) at each
       time when Basic Rent shall be payable by the Lessee pursuant to this
       Lease, the amount of Basic Rent payable on each Rent Payment Date shall
       be equal to or greater than the aggregate amount of principal and accrued
       interest which becomes due and payable on the Notes on such Rent Payment
       Date; provided that payments due from the Lessee shall not be increased
       by reason of this Section 3.6 as a result of a Lessor Lien, or as a
       result of any amendment or supplement to the Operative Documents to which
       the Lessee did not consent.

4.     RECOMPUTATIONS

4.1    Adjustments

       The Basic Rent amounts and Stipulated Loss Values are subject to
       adjustment in accordance with Section 4.2 in the event of any issuance of
       Additional Notes pursuant to Section 11.1(b) of the Participation
       Agreement.

                                       6

<PAGE>

4.2    Methodology for Adjustments

       In the event Additional Notes are issued pursuant to Section 11.1 of the
       Participation Agreement, (a) the Basic Rent scheduled to be due after
       such issuance shall increase by the amount of the scheduled debt service
       due under such Additional Notes and (b) Stipulated Loss Values shall
       increase on each Stipulated Loss Value Date after such issuance by the
       amount of principal scheduled to be outstanding and the amount of
       interest scheduled to be accrued on such Additional Notes on such
       Stipulated Loss Value Date after taking into account any Basic Rent due
       on such Stipulated Loss Value Date.

4.3    Supplements

       The Lessor and the Lessee shall execute and deliver a supplement to this
       Lease and, if necessary, the Lessor shall execute and deliver a
       supplement to the Indenture and the Maryland Security Documents, if
       applicable, to reflect each such adjustment, provided that each such
       adjustment shall be effective for all purposes of this Lease regardless
       of whether either such supplement is actually executed and delivered.

5.     RENEWAL OPTIONS

5.1    Renewal Options

       So long as no Special Default or Lease Event of Default shall have
       occurred and be continuing at the time(s) the Lessee elects in writing to
       exercise its renewal option(s) hereunder and at the commencement of the
       applicable Renewal Term, the Lessor hereby grants to the Lessee an option
       to renew this Lease for one or more Properties which remain subject to
       this Lease at the time of notice and at the time of renewal (a) subject
       to the succeeding paragraph of this Section 5.1, for up to three
       successive terms of five years each during which Basic Rent shall be
       equal to the Fixed Rate Renewal Rent (each such renewal term being
       referred to hereinafter as a Fixed Rate Renewal Term) or (b) at the
       expiration of the Fixed Rate Renewal Terms and any Fair Market Value
       Renewal Term for a term selected by the Lessee during which Basic Rent
       shall be equal to the Fair Market Rental Value of the Property or
       Properties which the Lessee elects to be renewed (each such renewal term
       being referred to hereinafter as a Fair Market Value Renewal Term; each
       of the Fixed Rate Renewal Terms and each of the Fair Market Value Renewal
       Terms are referred to hereinafter as Renewal Terms); provided that the
       Fair Market Value Renewal Terms shall be not less than five, nor more
       than ten years and shall not exceed the useful life of the Improvements
       constituting part of the Properties being renewed as determined by the
       Appraisal Procedure at the time of the renewal.

       Notwithstanding the foregoing, Lessee may renew the Properties located at
       (i) 225 North Calvert Street, Baltimore, (ii) 340 Columbia Pike,
       Arlington, (iii) 1111 East Main Street, Richmond, (iv) 830 Central
       Avenue, St. Petersburg, (v) 12125 Viers Mill Road, Silver Springs, (vi)
       2059 Northlake Parkway, Tucker, (vii) One Commercial Place, Norfolk and
       (viii) Two Commercial Place, Norfolk (Properties described in clauses
       (i)-(iv), the One Year Properties; Properties described in clause (v) the
       Four Year Properties; and all such Properties, the Wintergreen
       Properties) for only two Fixed Rate Renewal Terms of five years each. If
       the Lessee desires to renew any One Year Property or any Wintergreen
       Property described in clauses (vi)-(viii) at the end of the second Fixed
       Rate Renewal Term, it may either (a) exercise its renewal option (as
       described in the prior paragraph) for a Fair Market Renewal Term (except
       that, in the case of a One Year Property, the Basic Rent during the first
       year of such Renewal Term shall be the Fixed

                                       7

<PAGE>

       Rate Renewal Rent with respect to such Property and during the remaining
       years of such Renewal Term shall be the Fair Market Rental Value as
       determined prior to the commencement of such Renewal Term) or (b) elect
       (in its renewal notice) to have such One Year Property or such
       Wintergreen Property, as applicable, appraised by an Appraiser to make
       the determinations referred to below as to its then expected remaining
       useful life and expected residual value. Following such appraisal the
       Lessee may renew this Lease for a five year Renewal Term for such One
       Year Property or such Wintergreen Property, as applicable. The Basic Rent
       during such Renewal Term shall be the Fixed Rate Renewal Rent for the
       Maximum Term, and for the balance of such Renewal Term shall be the Fair
       Market Rental Value of such One Year Property or such Wintergreen
       Property, as applicable, as determined prior to the commencement of such
       Renewal Term. Maximum Term for each of the One Year Properties and for
       each of the Wintergreen Properties described in clauses (vi)-(viii) means
       the lesser of five years and the period ending on the date as of which
       such Appraiser determines that (A) the sum of the Basic Term, the Fixed
       Rate Renewal Terms and such Maximum Term does not exceed eighty percent
       of such Property's remaining economic useful life as of the Original
       Closing Date, and (B) the expected residual value of such One Year
       Property or such Wintergreen Property at the end of the Maximum Term is
       not less than 20 percent of the Lessor's Cost for such One Year Property
       or such Wintergreen Property, determined without regard to the effects of
       inflation or deflation from the Original Closing Date. If the Lessee
       desires to renew any Four Year Property at the end of the second Fixed
       Rate Renewal Term, it may exercise its renewal option (as described in
       the prior paragraph) for a Renewal Term of five years during which the
       Basic Rent for the first four years of the Renewal Term shall be the
       Fixed Rate Renewal Rent and for the last year of the Renewal Term shall
       be the Fair Market Rental Value for such period, determined at the time
       of the renewal. At the end of any such third Renewal Term with respect to
       any Wintergreen Property the Lessee may exercise Fair Market Renewal
       Terms as described in the prior paragraph.

       If the Lessor and the Lessee cannot agree on the amount of the Fair
       Market Rental Value, such Fair Market Rental Value shall be determined by
       the Appraisal Procedure. The first Renewal Term for a Property shall
       commence at the expiration of the Basic Term and each other Renewal Term
       for such Property to commence at the expiration of the preceding Renewal
       Term; provided, however, that in order to exercise such option to renew
       this Lease for any Renewal Term, the Lessee shall give the Lessor written
       notice of its election to renew at least 360 days prior to the expiration
       of the Basic Term or the Renewal Term then in effect, as the case may be,
       provided that such notice may be revoked by the Lessee for any reason so
       long as the Lessor has no less than 270 days' irrevocable notice of such
       revocation prior to the commencement of the new Renewal Term. The Lessee
       shall have no right to extend the Lease Term except as provided in this
       Article 5. During the Renewal Terms, Basic Rent for the Properties shall
       be payable to the Lessor by the Lessee semiannually, in advance, on the
       Rent Payment Dates.

5.2    Lease Provisions Applicable

       All the provisions of this Lease shall be applicable during each Renewal
       Term, except (a) the amount of each installment of Basic Rent which shall
       be determined as provided in Section 5.1 hereof and (b) the Stipulated
       Loss Values for the Properties shall for all Renewal Terms be equal to
       the Stipulated Loss Value for such Properties on the last day of the
       Basic Term.

                                       8

<PAGE>

6.     EARLY TERMINATION;

6.1    Early Termination Options

(a)    The Lessee, for any reason, in its sole discretion, on an Anniversary, or
       annually thereafter on any anniversary of an Anniversary, provided that
       at least 360 days' prior written notice is provided to the Lessor
       (provided that such notice may be revoked by the Lessee for any reason
       prior to the date which is 270 days before the relevant Anniversary or
       anniversary or as permitted pursuant to Section 6.1(d)) may terminate
       this Lease in accordance with this Section 6.1 as to any entire Property
       or Properties, in each case, only if such Property or Properties are not
       subject to an Event of Loss or Event of Taking or any event which with
       the giving of notice or the lapse of time or both would constitute an
       Event of Loss or Event of Taking. Except as otherwise provided herein, if
       the Lessee so elects to terminate this Lease, the Lessee shall vacate
       such Property (unless it becomes subject to a Partial Occupancy Lease or
       a FMV Lease) on or before the Anniversary or anniversary on which this
       Lease shall terminate with respect thereto and return such Property to
       Lessor in accordance with Article 12 of this Lease. In the case of a
       termination relating to one or more of the Bank Branch Properties, if the
       Lessee so elects in the termination notice, the bank lobby space located
       in some or all of the Bank Branch Property or Bank Branch Properties to
       be terminated will then become subject to a Bank Branch Lease. The sum of
       (i) the Lessor's Cost for such Property or Properties to be terminated
       pursuant to this Section 6.1(a) (and for the portion of any Property or
       Properties to be subleased pursuant to an AFR Sublease), plus (ii) the
       ---- Lessor's Cost for any other Property or Properties previously so
       terminated pursuant to this Section 6.1(a) (and any portion of any
       Property or Properties previously subleased pursuant to an AFR Sublease
       and for any FMV Property or FMV Properties terminated pursuant to Section
       3.1(c)), plus ---- (iii) $12,996,720 (which amount represents four
       percent (4%) of Total Original Lessor's Cost which will not be terminated
       pursuant to this Section 6.1(a) but was terminated pursuant to the
       Original Leases prior to the date hereof, less (iv) the Lessor's Cost for
       any portion of any Property or Properties ---- leased to the Lessee
       pursuant to a Partial Occupancy Lease (but only for so long as such
       portion remains subject to a Partial Occupancy Lease), expressed as a
       percentage of Total Original Lessor's Cost, may not exceed the
       percentages of Total Original Lessor's Cost set forth in the table below,
       except as set forth in the next paragraph and except to the extent
       attributable to less than a single floor of a Property which is to be
       leased pursuant to a Partial Occupancy Lease or subleased pursuant to an
       AFR Sublease. Consequently, and in all events (except to the extent
       attributable to less than a single floor of a Property), Properties
       representing a combined 46% of Total Original Lessor's Cost may not be
       terminated pursuant to the Original Leases or pursuant to this Section
       6.1(a) (excluding any portion of any Property leased to the Lessee
       pursuant to a Partial Occupancy Lease, so long as such portion remains
       subject to a Partial Occupancy Lease). Any termination of Properties
       pursuant to this Section 6.1(a) shall not result in a reduction of Basic
       Rent. The percentages referenced above are as follows:

                                                Total Joint
                                             Maximum Cumulative
                  Anniversary                   Percentages
                  -----------                   -----------
                June 10, 2004                       21%
                June 10, 2009                       38%
                June 10, 2015                       54%

                                       9

<PAGE>

(b)    In addition to the termination option in paragraph (a) above (and subject
       to the terms thereof with respect to notice and that no Event of Loss or
       Event of Taking or event which with the passage of time or giving of
       notice would constitute an Event of Loss or Event of Taking, is then
       continuing), the Lessee (if the Lessee has not terminated the maximum
       Lessor's Cost pursuant to Section 6.1(a)) may, for any reason, in its
       sole discretion, in the same notice as referenced in Section 6.1(a), on
       each Anniversary, or annually thereafter on any anniversary of an
       Anniversary, terminate one entire Property (the Carryover Property) from
       this Lease if the sum of the Lessor's Cost of the Carryover Property plus
       the Lessor's Cost of Properties (excluding any portion of a Property
       leased to Lessee pursuant to a Partial Occupancy Lease, so long as such
       portion remains subject to a Partial Occupancy Lease) previously
       terminated pursuant to Section 6.1(a), plus the Lessor's Cost of any
       portion of a Property subleased pursuant to an AFR Sublease, plus the
       Lessor's Cost of any FMV Properties previously terminated pursuant to
       Section 3.1(c), exceeds (such excess being referred to as the Cost
       Excess) the Total Joint Maximum Cumulative Percentage of Lessor's Cost
       which can otherwise be terminated pursuant to Section 6.1(a), but will
       not exceed such Total Joint Maximum Cumulative Percentage on the next
       Anniversary (it being agreed that the maximum terminations pursuant to
       Sections 6.1(a) and (b) hereof is 54% of Total Original Lessor's Cost).
       No termination of Properties pursuant to this Section 6.1(b) shall result
       in a reduction of Basic Rent. No more than one Carryover Property may be
       terminated pursuant to this paragraph (b) on an Anniversary or during the
       period until the next Anniversary. In the termination notice the Lessee
       may elect to enter into a Bank Branch Lease in the Carryover Property if
       it is also a Bank Branch Property.

       On the date a Carryover Property is terminated from this Lease, Lessee
       shall vacate such Property on or before such date and the related
       Property shall be returned to the Lessor pursuant to Article 12 of this
       Lease. There shall be no reduction in Basic Rent as a result of such
       termination and the Lessee shall continue to pay Basic Rent to the Lessor
       until the next Anniversary as if the maximum (but no more than the
       maximum) terminations had occurred pursuant to Section 6.1(a); provided
       that if such Carryover Property will be subject to a Bank Branch Lease
       during such period, the rent which would otherwise be due under such Bank
       Branch Lease during such period will be reduced by an amount equal to the
       Bank Branch Lease rent multiplied by a fraction, the numerator of which
       is the Cost Excess and the denominator of which is the Lessor's Cost of
       such Carryover Property. The Lessor's Cost of a Carryover Property so
       terminated shall reduce the percentage of Lessor's Cost of Properties
       which the Lessee can terminate pursuant to Section 6.1(a) on or after the
       next Anniversary to the extent of the Cost Excess. After a Carryover
       Property is so terminated, the Lessee shall continue to pay Basic Rent
       (as provided in the second sentence of this paragraph) but otherwise have
       no other obligations under this Lease (except for accrued obligations),
       any indemnities (except to the extent indemnities would otherwise survive
       a Lease termination) or otherwise with respect to the Carryover Property.

(c)    Upon a Bank Branch Property being terminated from this Lease pursuant to
       Section 6.1(a) or (b) and the Lessee having elected to enter into a Bank
       Branch Lease for the first floor space within such Bank Branch Property
       then being used by the Lessee as a retail bank, the Lessee and the
       Termination Transferee (if any) shall, so long as no Special Default or
       Lease Event of Default has occurred and is continuing, enter into a Bank
       Branch Lease prior to such termination. Notwithstanding the foregoing, in
       the case of a termination of a Bank Branch Property pursuant to Section
       6.2 where the Lessor does not retain such Bank Branch Property, Lessor
       shall execute the Bank Branch Lease prior to such termination and assign
       to the purchaser under Section 6.2 the Lessor's rights and obligations
       under such Bank Branch Lease, which Bank Branch Lease shall specify (i)
       that after such assignment Lessor shall have no liability or obligations
       as a result

                                       10

<PAGE>

       of such Bank Branch Lease and (ii) that if such purchaser does not
       purchase as contemplated by Section 6.2, such Bank Branch Lease shall be
       deemed terminated in all respects. The rent under each Bank Branch Lease
       shall be the lower of (x) the Average Annual Rent Factor multiplied by
       the Lessor's Cost of such bank space (which Lessor's Cost of such bank
       space shall be determined by allocating the Lessor's Cost of the related
       Property pro rata based on Square Feet) and (y) the Fair Market Value
       Rent (taking into account the other terms of the Bank Branch Lease) of
       such bank space. The initial term of each Bank Branch Lease shall be as
       selected by the Lessee, but shall not be less than three or more than ten
       years.

(d)    The Lessee shall have the right, subject to Section 6.1(e), to make the
       termination of any Property pursuant to Section 6.1(a) subject to the
       condition that the following events must occur prior to or simultaneously
       with such termination: (i) the Security Documents shall cease to be in
       effect or the relevant Property shall from and after the next Anniversary
       be released from the Lien of the Security Documents and (ii) a
       Termination Transferee shall have entered into a Partial Occupancy Lease
       with the Lessee with respect to any portion of such Property identified
       by the Lessee in the notice referred to in Section 6.1(e)(i) as being
       subject to the proposed Partial Occupancy Lease.

(e)    The Lessee shall only be entitled to exercise its right to make its
       termination option with respect to any Property under Section 6.1(a)
       conditional pursuant to Section 6.1(d) if: (i) the Lessee shall notify
       the Lessor in writing between 540 and 270 days prior to an Anniversary
       that it intends to keep possession of a portion of such Property, which
       notice shall identify the portion of any Property which is to be subject
       to a Partial Occupancy Lease either by reference to the portion of such
       Property which the Lessee intends to retain possession of or by reference
       to the portion of such Property which the Lessee intends to vacate, (ii)
       the portion of such Property which is to be subject to a Partial
       Occupancy Lease shall consist of one or more entire floors of each
       relevant Property and does not include any partial floors, (iii) the
       Lessee shall pay for all reasonable costs of completing necessary
       Demising Work in such Property in accordance with Section 6.5, (iv) if
       the Termination Transferee to whom the Property subject to a Partial
       Occupancy Lease is transferred is the Recourse Guarantor or an Affiliate
       of the Recourse Guarantor, the Lessee shall pay such portion of the
       Transfer and similar taxes as are determined by multiplying such taxes by
       a fraction, the numerator of which is the Lessor's Cost of the portion of
       the Property subject to the Partial Occupancy Lease and the denominator
       of which is the total Lessor's Cost for the Property, and (v) after
       giving effect to all terminations then requested by the Lessee on such
       Anniversary, the Lessee would have terminated this Lease with respect to
       at least the Total Joint Maximum Cumulative Percentage of Total Original
       Lessor's Cost permitted for such Anniversary in Section 6.1(a), and
       provided that any portion of a Property leased to the Lessee pursuant to
       a Partial Occupancy Lease shall (so long as such portion remains subject
       to a Partial Occupancy Lease) be deemed to still be subject to this Lease
       for purposes of determining whether or not the Total Joint Maximum
       Cumulative Percentages in Section 6.1(a) have been exceeded and for
       purposes of Section 3.1(a) and (b). The Lessor shall be obligated to
       notify the Lessee within 60 days after receipt of the notice described in
       Section 6.1(e)(i) whether or not the Lessor expects to be able to satisfy
       the conditions set forth in Section 6.1(d). The Lessor will promptly
       notify the Lessee if, at any time after the Lessor notified the Lessee
       pursuant to the preceding sentence that the Lessor expects to be able to
       satisfy the conditions set forth in Section 6.1(d), it becomes likely
       that the Lessor will not be able to satisfy such conditions.

(f)    In the event that the termination of any Property can not be completed as
       a result of the failure of the conditions set forth in Section 6.1(d) to
       be satisfied, the Lessee shall have the option to

                                       11

<PAGE>

       sublease the portion of such Property which was not identified by the
       Lessee as being subject to the proposed Partial Occupancy Lease in the
       notice referred to in Section 6.1(e)(i), to a Termination Transferee
       selected by the Lessor (which must either be the Recourse Guarantor or an
       entity guaranteed by the Recourse Guarantor pursuant to a guaranty in
       form and substance reasonably acceptable to the Lessee) and the Lessor
       shall permit such sublease pursuant to an AFR Sublease. Any portion of a
       Property subleased to a Termination Transferee pursuant to an AFR
       Sublease shall be considered terminated from this Lease for purposes of
       determining whether or not the Total Joint Maximum Cumulative Percentages
       in Section 6.1(a) have been exceeded and for purposes of Section 3.1(a)
       and (b). If at any time any Property subject to an AFR Sublease is
       released from the Lien of the Security Documents, the relevant
       Termination Transferee and the Lessee shall promptly enter into a Partial
       Occupancy Lease relating to the portion of such Property that was not
       subject to an AFR Sublease and, upon execution of such Partial Occupancy
       Lease, (i) such AFR Sublease shall automatically terminate and (ii) this
       Lease shall automatically terminate with respect to such Property. If the
       Termination Transferee to whom the Property subject to a Partial
       Occupancy Lease is transferred is the Recourse Guarantor or an Affiliate
       of the Recourse Guarantor, the Lessee shall pay such portion of the
       Transer and similar taxes as are determined by multiplying such taxes by
       a fraction, the numerator of which is the Lessor's Cost of the portion of
       the Property subject to the Partial Occupancy Lease and the denominator
       of which is the total Lessor's Cost for the Property.

(g)    For purposes of Section 6.1(a), the Lessor's Cost for any portion of any
       Property shall be determined by multiplying the Lessor's Cost for such
       Property in its entirety by a fraction, the numerator of which is the
       number of Square Feet included in such portion and the denominator of
       which is the total Square Feet of such Property.

(h)    If at any time after the Lessee notifies the Lessor of its desire to
       terminate the Lease with respect to a Property pursuant to Section 3.1(c)
       or 6.1(a) and to enter into a FMV Lease or a Partial Occupancy Lease, as
       applicable, with respect to a portion of such Property, the Lessor will
       use all reasonable efforts to cause such Property to be released from the
       Lien of the Security Documents (it being understood that a Property can
       not be released from the Lien of the Security Document unless either the
       conditions of Section 11.01 of the Indenture are satisfied or the
       Indenture Trustee has consented in writing to such release). If the
       Lessee has requested that this Lease be so terminated with respect to
       more than one Property pursuant to Section 3.1(c) or 6.1(a) and the
       Lessor determines that it will be unable to cause all such Properties to
       be released from the Lien of the Security Documents, so that it will be
       necessary for one or more of such Properties to remain subject to the
       Lease and become subject to an AFR Sublease, the Lessor shall use all
       reasonable efforts to cause the Property to be terminated from the Lease
       which minimizes the amount of Square Feet which will be subject to an AFR
       Sublease.

6.2    Obsolescence Termination

       In addition to the termination rights granted in Section 6.1 above, so
       long as no Special Default or Lease Event of Default has occurred and is
       continuing, the Lessee may, if it determines (as evidenced by a
       certificate of a Responsible Officer of the Lessee) one or more
       Properties is obsolete, surplus or uneconomic for its needs, on not less
       than 180 days' prior written notice to the Lessor (a Notice of
       Termination), terminate this Lease as to any such Property or Properties
       on a Rent Payment Date after December 10, 2004 (the Termination Date).
       The Notice of Termination may be revoked by the Lessee for any reason up
       to 30 days prior to the Termination Date (unless Lessor has previously
       given the notice contemplated in the next paragraph). Upon

                                       12

<PAGE>

       such termination election, the Lessee shall use all reasonable efforts to
       sell the Properties (subject to any Bank Branch Leases for such
       Properties, if any, which the Lessee elects in such Notice of Termination
       for any Bank Branch Properties being so terminated, and subject to any
       Senior Subleases) for cash to the highest bidder unrelated to the Lessee
       on such Termination Date. Lessor may, but shall have no obligation to,
       attempt to locate a purchaser for such Property or Properties, provided
       that such attempts do not interfere with the Lessee's attempts to locate
       such a purchaser. In the event such a buyer is found, the Lessee shall
       vacate such Properties (except for any bank lobby space subject to such a
       Bank Branch Lease) and the sale shall occur on the Termination Date and,
       subject to the last sentence in this paragraph, net sales proceeds shall
       be paid to the Lessor. If the net sales proceeds received by the Lessor
       are less than the Stipulated Loss Value of such Properties on the
       Termination Date the Lessee shall pay to the Lessor on such Termination
       Date such shortfall and all other amounts then due, including any
       Supplemental Rent and Redemption Premium, if any, then due. If no such
       buyer is found by such Termination Date, the Lessee may elect to either
       continue this Lease without any such termination (provided, however, the
       Lessee may not withdraw (pursuant to this sentence or the first sentence
       of this paragraph) more than 5 termination notices in the aggregate and
       not more than one in any 18-month period, in each case for this Lease and
       any FMV Lease) or vacate such Property or Properties (it being understood
       that sublessees under Senior Subleases, and the Lessee as lessee under
       any such Bank Branch Lease, need not vacate) and pay to the Lessor the
       Stipulated Loss Value, the Redemption Premium and any other amounts then
       due for such Properties on such Termination Date and continue to attempt
       to find such a buyer. When such a buyer is ultimately found, the net
       proceeds of such sale shall be remitted to the Lessee up to an amount
       equal to and in reimbursement of the Lessee's payment of Stipulated Loss
       Value, the Redemption Premium and any other amounts then due and any
       excess shall be paid as provided in the next sentence. If the Lessee
       arranges for such a sale and has paid all Supplemental Rent and
       Redemption Premium, if any, then due and the net proceeds are in excess
       of Stipulated Loss Value, such excess proceeds shall be applied to
       reimburse the Lessee for the reasonable costs incurred in connection with
       such sale and the balance shall be paid to the Lessor.

       Upon Lessee's payment of all amounts due under this Section 6.2, and the
       assumption by the purchaser of any Bank Branch Leases in the terminated
       Property(ies), Lessor shall, at Lessee's expense, execute such deeds and
       other instruments of transfer as Lessee may reasonably request to
       effectuate the transfer to such purchaser, which transfer shall be
       without recourse or warranty, except as to the absence of Lessor's Liens.

       In the event the Lessee elects to terminate this Lease with respect to a
       Property or Properties as provided in this Section 6.2, the Lessor may
       elect to retain such Properties (by notice given to Lessee no later than
       60 days after Lessor receives the Notice of Termination) and thereby
       relieve the Lessee from any obligation to pay Stipulated Loss Value (but
       the Lessee shall nonetheless pay any Redemption Premium, if any, and
       Supplemental Rent then due), provided that no such election shall be made
       unless the Lessor shall have deposited funds with the Indenture Trustee
       sufficient to pay the Allocable Portion of the Notes in full on the
       Termination Date. This Lease will so terminate with respect to such
       Property or Properties whether or not such Allocable Portion is so paid.
       Upon such termination the Lessor will transfer such Property or
       Properties to such other Person as it shall determine, but at its sole
       cost and expense, including as to transfer taxes.

                                       13

<PAGE>

6.3    Effect of Termination

       Upon compliance by the Lessee with the provisions of Section 6.2 with
       respect to termination of one or more Properties, the obligation of the
       Lessee to pay Basic Rent for the terminated Properties for any period
       after the Termination Date shall cease. Upon compliance by Lessee with
       the provisions of Section 6.1 or 6.2 with respect to termination of one
       or more Properties, the Lease Term shall end for such Properties and the
       obligations of the Lessee hereunder with respect to such Properties
       (other than any such obligations expressly surviving termination of this
       Lease) shall terminate as of the date of termination. In the event, for
       any reason, the purchaser fails to purchase a Property on the Termination
       Date, this Lease shall continue as to such Property, and the Lessee shall
       pay any costs incurred by Lessor, the Pass Through Trustee or Indenture
       Trustee in connection therewith unless such failure resulted from a
       breach by a party of its obligations under the Operative Documents, in
       which case the Lessee shall not pay such party's costs.

6.4    Adjustment of Termination Percentages

       The Total Joint Maximum Cumulative Percentages set forth in Section
       6.1(a) shall not be reduced upon the termination of this Lease as to a
       Property unless such termination is pursuant to Section 6.2, 14.1 or 14.3
       hereof or Section 9.1 of the Participation Agreement only in the case
       where the Lessee elects to purchase the Property or Section 9.3 of the
       Participation Agreement (a Terminating Event), in which case each Total
       Joint Maximum Cumulative Percentage in Section 6.1(a) for an Anniversary
       that has not yet occurred shall equal:

       EP+((PA-EP) X (1-(TP/((1-CT)-EP))))

       EP = the Total Joint Maximum Cumulative Percentage for the Anniversary
       that has most recently occurred or, if no Anniversary has previously
       occurred, 0.04;

       PA = the Total Joint Maximum Cumulative Percentage being adjusted;

       TP = the percentage of Total Original Lessor's Cost represented by the
       Property being terminated;

       CT = the percentage of Total Original Lessor's Cost represented by the
       cumulative Properties previously terminated from the Lease pursuant to a
       Terminating Event, without regard of the Terminating Event giving rise to
       the current Section 6.4 adjustment.

       Each variable should be expressed as a decimal when calculating the Total
       Joint Maximum Cumulative Percentage and converted to a percentage after
       the calculation.

       For example, if during the fourth and eighth years of the Original
       Leases, Properties representing 40% and 10%, respectively, of total
       Lessor's Cost for all Properties originally subject to the Original
       Leases were terminated from the Original Leases (or this Lease, as the
       case may be) pursuant to a Terminating Event, the Total Joint Maximum
       Cumulative Percentage table of Section 6.1(a) would become as follows:

                                       14

<PAGE>

<TABLE>
<CAPTION>
                                      4th Year                         8th Year
                                 Total Joint Maximum              Total Joint Maximum
            Anniversary        Cumulative Percentages/1/        Cumulative Percentages/1/
            -----------        -------------------------        -------------------------
<S>                            <C>                              <C>
       June 10, 2004                     13.9167%                           13.9167%

       June 10, 2009                     23.8333%                           21.6814%

       June 10, 2015                     33.1667%                           28.9895%
</TABLE>

6.5    Demising Work

       Any Demising Work required to be performed by Lessee: shall, in each
       instance, be completed as follows:

(a)    Lessee shall prepare and submit to Lessor for Lessor's approval a
       preliminary space plan (the Preliminary Space Plan) in connection with
       the proposed separation of the Leased Premises from the Surrendered
       Premises. Lessor's approval shall not be unreasonably withheld or delayed
       and shall be given or withheld, or Lessor shall advise Lessee whether
       Lessor requires additional information in order to evaluate Lessee's
       request, within ten (10) days following Lessee's delivery to Lessor of
       the Preliminary Space Plan. If Lessor objects to the Preliminary Space
       Plan (or any revision thereof), Lessee shall deliver a revised
       Preliminary Space Plan to Lessor and the procedure will be repeated, if
       necessary, until a final space plan is approved. The final approved space
       plan is hereinafter referred to as the Final Space Plan. Lessor and
       Lessee shall work with one another reasonably and in good faith to
       resolve any differences concerning the Preliminary Space Plan and the
       Final Space Plan (or the Preliminary Drawings or Final Drawings hereafter
       referenced in Section 6.5(b)).

(b)    From the Final Space Plan, Lessee shall prepare and submit to Lessor for
       Lessor's approval (which approval shall not be unreasonably withheld or
       delayed, and which shall be given or withheld, or Lessor shall advise
       Lessee whether Lessor requires additional information in order to
       evaluate Lessee's request, within ten (10) days) following Lessee's
       delivery to Lessor of, one-eighth inch (1/8") architectural, mechanical,
       electrical, lighting, plumbing and (if reasonably requested by Lessor)
       floor load working drawings together with specifications necessary to
       complete all of the proposed improvements shown on the Final Space Plan
       (collectively, the Preliminary Drawings). If Lessor objects to the
       Preliminary Drawings (or any revision thereof), Lessee shall deliver
       revised Preliminary Drawings to Lessor and the procedure will be
       repeated, if necessary, until final drawings are approved. The final
       approved drawings are hereinafter referred to as the Final Drawings.

(c)    Lessee will cause the Demising Work to be constructed in substantial
       accordance with the Final Drawings. Lessor shall be deemed to have waived
       Lessee's performance of any Demising Work not shown on the Final Drawings
       except to the extent required to satisfy Applicable Laws. Lessor's review
       of Space Plans and Drawings under Sections 6.5(a) and (b) is for Lessor's
       purposes only, and not a representation or warranty that the work to be
       performed pursuant thereto meets all Applicable Laws.

--------
/1/  Total Joint Maximum Cumulative Percentages are percentages of Lessor's Cost
     for all Properties originally subject to the Lease.

                                       15

<PAGE>

(d)    In connection with the Demising Work, Lessee shall file all drawings,
       plans and specifications, pay all fees and obtain all permits and
       applications from any authorities having jurisdiction and perform all
       Demising Work in compliance the requirements of such permits and
       applications; and Lessee shall promptly obtain, if required, a permanent
       certificate of occupancy and all other approvals required of Lessee to
       use and occupy the Leased Premises.

(e)    Lessee shall have the right to select the general contractor and
       subcontractors for the Demising Work, provided that Lessee shall not use
       a contractor or subcontractor as to which Lessor shall reasonably object
       within ten (10) days following Lessee's notice to Lessor of the identity
       of such contractor(s) and subcontractor(s) as Lessee has selected.

(f)    The parties shall cooperate with each other in good faith and coordinate
       the scheduling of the Demising Work in an effort to complete the same in
       a timely manner. Lessor and Lessee shall be commercially reasonable in
       agreeing to non-material reconfigurations of the boundaries of the Leased
       Premises to facilitate Lessee's construction of demising walls for the
       Leased Premises.

(g)    All of the Demising Work shall be done in conformity with Applicable Laws
       and at Lessee's expense, including, without limitation, building permit
       fees, other fees, architectural and engineering expenses and other
       expenses relating thereto. Lessee may request Lessor's review of
       Preliminary Space Plans or Preliminary Drawings before Lessee's
       notification to Lessor of Lessee's election to remove Surrendered
       Premises from the Leased Premises to facilitate Lessee's understanding of
       the potential approximate costs associated therewith.

6.6    Sublessee Options

       If at the time this Lease is to be terminated with respect to any
       Property pursuant to Section 3.1 or Section 6.1 or at the time any
       portion of any Property is to be subleased pursuant to an AFR Sublease, a
       sublessee of any portion of such Property has the option to sublease from
       the Lessee additional space in such Property at a fair market value rent
       (including by way of any right of first refusal or similar right), the
       Lessor agrees, and will cause any relevant Termination Transferee to
       agree, to honor the terms of such option as if it was an option granted
       to such permitted sublessee by the Lessor or relevant Termination
       Transferee, as the case may be.

7.     CONDITION AND USE OF PROPERTIES

7.1    Waivers

       The Properties are demised and let by the Lessor "AS IS" in their present
       condition, subject to (a) the rights of any parties in possession
       thereof, (b) the state of the title thereto existing at the time the
       Lessor acquired title to such Properties, (c) any state of facts which an
       accurate survey or physical inspection might show (including the surveys
       delivered on the Closing Date), (d) all Applicable Laws and Regulations,
       (e) any violations of Applicable Laws and Regulations which may exist at
       the commencement of the Lease Term and (f) the presence or potential
       presence of any Hazardous Material at, on or under any Properties or any
       property in the vicinity of the Properties. The Lessee has examined the
       Properties and has found the same to be satisfactory for all purposes of
       this Lease (without waiving any rights Lessee may have against any
       contractor, subcontractor or supplier). NONE OF THE LESSOR, THE INDENTURE
       TRUSTEE OR THE PASS THROUGH TRUSTEE (EITHER IN ITS INDIVIDUAL OR TRUST
       CAPACITIES) HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY REPRESENTATION
       OR WARRANTY, EXPRESS OR IMPLIED, WHATSOEVER OR SHALL BE DEEMED TO

                                       16

<PAGE>

       HAVE ANY LIABILITY WHATSOEVER AS TO THE VALUE, HABITABILITY,
       MERCHANTABILITY, COMPLIANCE WITH THE PLANS AND SPECIFICATIONS, CONDITION,
       DESIGN, OPERATION, OR FITNESS FOR USE OF THE PROPERTIES (OR ANY PART
       THEREOF), OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR
       IMPLIED, WITH RESPECT TO THE PROPERTIES (OR ANY PART THEREOF) AND NONE OF
       THE LESSOR, THE INDENTURE TRUSTEE OR THE PASS THROUGH TRUSTEE (EITHER IN
       ITS INDIVIDUAL OR TRUST CAPACITIES) SHALL BE LIABLE FOR ANY LATENT,
       HIDDEN, OR PATENT DEFECT THEREIN OR FOR THE FAILURE OF THE PROPERTIES TO
       BE CONSTRUCTED IN ACCORDANCE WITH THE PLANS AND SPECIFICATIONS, THE
       COMPLIANCE OF ITS PLANS AND SPECIFICATIONS WITH APPLICABLE LAWS AND
       REGULATIONS OR THE FAILURE OF THE PROPERTIES, OR ANY PART THEREOF,
       OTHERWISE TO COMPLY WITH ANY APPLICABLE LAWS AND REGULATIONS except that
       the Lessor hereby represents, warrants and covenants that the Properties
       are and shall be free of Lessor Liens. It is agreed that the Lessee is
       fully familiar with the Properties, has been afforded full opportunity to
       inspect the Properties, is satisfied with the results of its inspections
       of the Properties for all purposes of this Lease (without waiving any
       rights Lessee may have against any contractor, subcontractor or supplier)
       and is entering into this Lease solely on the basis of the results of its
       own inspections and all risks incident to the matters discussed in the
       preceding sentence, as between the Lessor, the Indenture Trustee or the
       Pass Through Trustee, on the one hand, and the Lessee, on the other, are
       to be borne by the Lessee. The provisions of this Article 7 have been
       negotiated, and, except to the extent otherwise expressly stated, the
       foregoing provisions are intended to be a complete exclusion and negation
       of any representations or warranties by the Lessor, the Indenture Trustee
       or the Pass Through Trustee, express or implied, with respect to the
       Properties, that may arise pursuant to any law now or hereafter in
       effect, or otherwise.

8.     LIENS; TAXES

8.1    Liens

       The Lessee shall not directly or indirectly create, incur, assume or
       suffer to exist any Lien on or with respect to the Properties, this Lease
       or the leasehold estate created hereby, any Basic Rent or Supplemental
       Rent, title thereto or any interest therein, or the rentals payable with
       respect to any subletting of the Properties, including all Liens which
       arise out of the possession, use, occupancy, construction, repair or
       rebuilding of the Properties or by reason of labor or materials furnished
       or claimed to have been furnished to the Lessee, or any of its
       contractors or agents or by reason of the financing of any personalty or
       equipment purchased or leased by the Lessee (from other than the Lessor)
       or Alterations constructed by the Lessee and not financed by the Lessor,
       except in all cases Permitted Liens. The Lessee shall promptly, but not
       later than thirty (30) days after notice thereof, at its own expense,
       take such action as may be necessary duly to discharge or eliminate or
       bond in a manner reasonably satisfactory to the Lessor any such Lien
       (other than Permitted Liens) if the same shall arise at any time;
       provided, however, that the Lessee shall not be required to so discharge
       or bond any such Lien while the same is being contested in good faith by
       appropriate proceedings diligently prosecuted so long as such proceedings
       shall not involve any material danger of the sale, forfeiture or loss of,
       and shall not interfere with the use or disposition of, any part of the
       Properties or title thereto or any interest therein or the payment of
       Rent.

                                       17

<PAGE>

       Nothing contained in this Lease shall be construed as constituting the
       consent or request of the Lessor, express or implied, to or for the
       performance by any contractor, laborer, materialman, or vendor of any
       labor or services or for the furnishing of any materials for any
       construction, alteration, addition, repair or demolition of or to the
       Properties or any part thereof, which would result in any liability of
       the Lessor for payment therefor. Notice is hereby given that the Lessor
       will not be liable for any labor, services or materials furnished or to
       be furnished to the Lessee, or to anyone holding an interest in the
       Properties or any part thereof through or under the Lessee, and that no
       mechanic's or other Liens for any such labor, services or materials shall
       attach to or affect the interest of the Lessor in and to the Properties.

8.2    Taxes

(a)    Subject to the provisions hereof relating to contests, Lessee shall pay
       and discharge, before any interest or penalties are due thereon, all of
       the following taxes, charges, assessments, levies and other items
       (collectively, "tax" or "taxes"), even if unforeseen or extraordinary,
       which are imposed or assessed during the Lease Term, regardless of
       whether payment thereof is due prior to, during or after the Lease Term:
       all taxes of every kind and nature (including, without limitation, real,
       ad valorem, personal property, and sales and use tax), on or with respect
       to the Properties (including, without limitation, any taxes assessed
       against the fee estate in the Land, Lessor's reversionary estate in the
       Properties or against any real property other than the Properties which
       is included within the tax parcel which includes the Properties), the
       Basic Rent and Additional Basic Rent (including, without limitation, ad
       valorem taxes) payable hereunder, this Lease or the leasehold estate
       created hereby; all charges and/or assessments for any easement or
       agreement maintained for the benefit of the Properties; and all general
       and special assessments, levies, water and sewer assessments and other
       utility charges, use charges, impact fees and rents and all other public
       charges and/or taxes whether of a like or different nature. Lessor shall
       promptly deliver to Lessee any bill or invoice Lessor receives with
       respect to any tax; provided, that the Lessor's failure to deliver any
       such bill or invoice shall not limit Lessee's obligation to pay such tax.
       Lessor agrees to cooperate with Lessee to enable Lessee to receive tax
       bills directly from the respective taxing authorities. Nothing herein
       shall obligate Lessee to pay, and the term "taxes" shall exclude,
       federal, state or local (i) franchise, capital stock or similar taxes, if
       any, of Lessor, (ii) income, excess profits or other taxes, if any, of
       Lessor, determined on the basis of or measured by Lessor's net income,
       (iii) any estate, inheritance, succession, gift, capital levy or similar
       taxes of Lessor, (iv) taxes imposed upon Lessor under Section 59A of the
       Internal Revenue Code of 1986, as amended, or any similar state, local,
       foreign or successor provision, (v) any amounts paid by Lessor pursuant
       to the Federal Insurance Contribution Act (commonly referred to as FICA),
       the Federal Unemployment Tax Act (commonly referred to as FUTA), or any
       analogous state unemployment tax act, or any other payroll related taxes,
       including, but not limited to, any required withholdings relating to
       wages, (vi) except as provided in Section 6 and Section 14 herein, any
       taxes in connection with the transfer or other disposition of any
       interest, other than Lessee's (or any person claiming under Lessee), in
       the Properties or this Lease, to any person or entity, including, but not
       limited to, any transfer, capital gains, sales, gross receipts, value
       added, income, stamp, real property gains or withholding tax, and (vii)
       any interest, penalties, professional fees or other charges relating to
       any item listed in clauses (i) through (vi) above; provided, further,
       that Lessee is not responsible for making any additional payments in
       excess of amounts which would have otherwise been due, as tax or
       otherwise, but for a withholding requirement which relates to the
       particular payment and such withholding is in respect to or in lieu of a
       tax which Lessee is not obligated to pay; and provided, further, that if
       at any time during the Lease Term, the method of taxation shall be such
       that there shall be assessed,

                                       18

<PAGE>

       levied, charged or imposed on Lessor a tax upon the value of the
       Properties or any present or future Improvement or Improvements on the
       Properties, including any tax which uses rents received from Lessee as a
       means to derive value of the property subject to such tax, then all such
       levies and taxes or the part thereof so measured or based shall be
       payable by Lessee, but only to the extent that such levies or taxes would
       be payable if the Properties were the only property of Lessor, and Lessee
       shall pay and discharge the same as herein provided. In the event that
       any assessment against the Properties is payable in installments, Lessee
       may pay such assessment in installments; and in such event, Lessee shall
       be liable only for those installments which become due and payable prior
       to or during the Lease Term, or which are appropriately allocated to the
       Lease Term even if due and payable after the Lease Term. Lessee shall
       deliver, or cause to be delivered, to Lessor and Indenture Trustee,
       promptly upon Lessor's or Indenture Trustee's written request, evidence
       satisfactory to Lessor and Indenture Trustee that the taxes required to
       be paid pursuant to this Section 8.2 have been so paid and are not then
       delinquent.

(b)    Lessee, at its own cost and expense, may contest (including seeking an
       abatement or reduction of) any taxes agreed to be paid hereunder;
       provided, that (i) Lessee first shall satisfy any Applicable Laws,
       including, if required, that the taxes be paid in full before being
       contested or, if not required to be paid in full, such contest shall
       suspend the collection of such taxes, (ii) no Lease Event of Default has
       occurred and is continuing and no Lease Event of Default shall occur as a
       result of such contest and (iii) failing to pay such taxes will not
       subject Lessor or Indenture Trustee to criminal or civil penalties or
       fines or to prosecution for a crime, or result in the sale, forfeiture,
       termination, cancellation or loss of any portion of the Properties or any
       interest therein, any Basic Rent or any Additional Basic Rent. Lessee
       agrees that each such contest shall be promptly and diligently prosecuted
       to a final conclusion. Lessee shall pay and shall indemnify, defend and
       hold Lessor and Indenture Trustee and all other Indemnitees harmless
       against any and all losses, judgments, decrees and costs (including,
       without limitation, all reasonable attorneys' fees and expenses) in
       connection with any such contest and shall promptly, after the final
       determination of such contest, fully pay and discharge the amounts which
       shall be levied, assessed, charged or imposed or be determined to be
       payable therein or in connection therewith, together with all penalties,
       fines, interest, costs and expenses thereof or in connection therewith,
       and perform all acts the performance of which shall be ordered or decreed
       as a result thereof. At Lessee's sole cost, Lessor shall assist Lessee as
       reasonably necessary with respect to any such contest, including joining
       in and signing applications or pleadings. Any rebate applicable to any
       portion of the Lease Term shall belong to Lessee. If at the time of any
       such contest a Lease Event of Default has occurred and is continuing,
       then Lessee shall post a bond or other security with and acceptable to
       Lessor and Indenture Trustee in their discretion in an amount equal to
       one hundred twenty-five percent (125%) of the amount being contested.

(c)    In the event that Lessee shall be required pursuant to this Section 8.2
       to pay, discharge or provide indemnity for, or make any other payment
       with respect to, any tax for which Lessee would not be obligated pursuant
       to Section 8.2(b) of the Participation Agreement, Lessor shall, on
       demand, reimburse and indemnify Lessee for any amount so paid or incurred
       by Lessee.

9.     MAINTENANCE AND REPAIR; ALTERATIONS, MODIFICATIONS AND ADDITIONS

9.1    Maintenance and Repair

       The Lessee, at its own expense, shall at all times (unless subject to an
       Event of Loss or an Event of Taking) (a) maintain the Properties in good
       order, repair and condition, ordinary wear and tear excepted, and to no
       less a standard than Lessee utilizes for other comparable properties
       owned or

                                       19

<PAGE>

       leased by it, (b) except to the extent Section 9.4 shall apply, maintain
       the Properties, and make all necessary repairs and Alterations to
       maintain the Properties, in accordance with all Applicable Laws and
       Regulations, and (c) comply with the standards imposed by any insurance
       policies required to be maintained hereunder which are in effect at any
       time with respect to the Properties or any part thereof, and shall take
       the preceding actions whether interior or exterior, structural or
       nonstructural, ordinary or extraordinary and foreseen or unforeseen
       whether or not such expenditures would constitute capital expenditures
       under GAAP if made by the owner of such property. The Lessee waives any
       right that it may now have or hereafter acquire to require the Lessor to
       (i) maintain, repair, replace, alter, remove or rebuild all or any part
       of the Properties or (ii) make repairs and Alterations (whether or not at
       the expense of the Lessor) pursuant to any Applicable Laws and
       Regulations or otherwise. The Lessee, at its own cost and expense, shall
       promptly replace or cause to be replaced all parts of the Improvements
       which may from time to time fail to function properly or become worn out,
       lost, stolen, destroyed, seized or confiscated, subject to a
       Condemnation, damaged beyond repair or permanently rendered unfit for use
       for any reason whatsoever; provided, however, that the Lessee shall not
       be obligated to replace any part if (a) such part has become unnecessary
       or obsolete and its replacement is not necessary or customary for the
       proper functioning of the Improvements and (b) the failure to replace
       such part will not reduce (other than to a de minimis extent) the
       remaining useful life, fair market value or residual value of the
       Improvements, in each case assuming that the Improvements are then being
       operated and maintained in accordance with this Article 9. In addition,
       the Lessee may, at its own cost and expense, remove in the ordinary
       course of maintenance, service, repair, overhaul or testing, any such
       parts, whether or not functioning properly, worn out, destroyed, seized,
       confiscated, damaged beyond repair or permanently rendered unfit for use,
       provided that the Lessee will, at its own cost and expense, replace such
       parts as promptly as practicable and in accordance with the standards set
       forth in this Section 9.1. All replacement parts (hereinafter referred to
       as Replacement Parts) shall be free and clear of all Liens (except for
       Permitted Liens and except in the case of replacement parts temporarily
       installed on an emergency basis) and shall be in as good operating
       condition as, and shall have a value, useful life and utility at least
       equal to, the parts replaced, assuming such replaced parts were in the
       condition and repair required to be maintained by the terms hereof.
       Immediately upon any Replacement Part becoming incorporated or installed
       in or attached to any part of the Improvements as above provided, without
       further act (subject only to Permitted Liens and except in the case of
       replacement property temporarily installed on an emergency basis), (i)
       legal title to such Replacement Part shall there upon vest in the Lessor
       and shall become subject to this Lease, (ii) such Replacement Part shall
       be deemed part of the Improvements for all purposes hereof to the same
       extent as the parts originally incorporated or installed in or attached
       to the Improvements, and (iii) title to the replaced part shall thereupon
       vest in the Lessee free and clear of all rights of the Lessor, and shall
       no longer be deemed part of the Improvements.

9.2    Alterations

(a)    (i)    The Lessee may, without the consent of the Lessor, and without
              complying with the requirements of paragraph (b) of this Section
              9.2, at the Lessee's own cost and expense, make Alterations to any
              Properties, so long as such Alterations (i) do not reduce the
              value, residual value and remaining useful life of such Property
              except to a de minimis extent (which for this purpose only shall
              mean a decrease in current market value or future residual value
              as of the applicable date for such Property shown on Schedule 3 of
              less than the lesser of $500,000 or 1% (in the aggregate for
              purposes of this Lease) of the then Fair Market Sales Value of
              such Property or a decrease of less than 2% in remaining

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<PAGE>

              useful life), (ii) do not cause such Property to become "limited
              use" property as defined in Rev. Proc. 2001-28, as amended, and
              (iii) do not change the use of such Property to a use other than a
              Permitted Use.

       (ii)   The Lessee will give the Lessor advance written notice of any
              structural changes to a Property if the cost thereof is expected
              to exceed the lesser of $1,000,000 and 10% (in the aggregate for
              purposes of this Lease) of the Lessor's Cost of such Property.

       (iii)  So long as no Special Default or Lease Event of Default has
              occurred and is continuing, the Lessee may remove any Severable
              Alteration not required by this Lease or Applicable Laws and
              Regulations at any time during or upon expiration of the Lease
              Term; provided, that the Lessee, at its cost and expense, shall
              restore the affected Properties to substantially the same
              condition as existed prior to any such Alteration.

       (iv)   If the Lessee shall make or cause to be made any Alterations, it
              shall do so in a good, substantial and workmanlike manner and in
              compliance with all Applicable Laws and Regulations and free of
              all Liens other than Permitted Liens. Whenever the Lessee is
              required to perform any Alterations upon the Properties, the
              Lessee shall promptly commence the Alterations and, once
              commenced, diligently and continually pursue the completion of
              such Alterations within a reasonable time. If any Alterations are
              made following a Casualty, a Condemnation or an Event of Loss
              where this Lease continues, any Net Proceeds shall be disbursed
              pursuant to Section 14.2.

(b)    Notwithstanding the foregoing, the Lessee may decide in its sole
       discretion to construct additions which may be substantial (the
       Additions) to a Property which Additions will remain owned by the Lessee
       or its designees so long as (i) such Additions do not reduce the current
       market value of such Property, future residual value for such Property or
       remaining useful life of such Property; provided that in the case of a
       Property located in (A) College Park, Georgia, (B) Triad Center,
       Greensboro, North Carolina, and (C) 8011 Villa Park, Richmond, Virginia
       (the Improved Properties), such Additions may reduce, but by no more than
       a de minimis amount (which for these purposes shall not exceed the lesser
       of $1,000,000 and 10% (in the aggregate for purposes of this Lease) of
       the Lessor's Cost of such Improved Property), the value or residual value
       of such Improved Property, (ii) the cross-easements referenced in the
       penultimate sentence of this paragraph are permitted by Applicable Laws
       and Regulations, (iii) such Property has available to it the number of
       parking spaces equal to the greater of (x) those required by Applicable
       Laws and Regulations and (y) those that maintain the same ratio of Square
       Feet in such Property to parking spaces available to such Property after
       such Additions as existed before such Addition, (iv) there are no
       unindemnified tax consequences to the Lessor, (v) no Special Default or
       Lease Event of Default is continuing when construction of such Addition
       is commenced and (vi) the Lessee shall comply with Section 9.2(a)(iv).
       Notwithstanding the foregoing, no such Additions shall be constructed if
       such construction or any related events may result in material adverse
       tax consequences to the Lessor (regardless of whether the Lessor is
       indemnified for such adverse consequences) unless (A) the Lessee
       satisfies the Rating Test and (B) Lessor receives an opinion from counsel
       selected by the Lessee and reasonably acceptable to the Lessor, that
       there is at least "more likely than not" authority for the federal income
       tax position which the Lessee requests the Lessor to assume. Subject to
       the foregoing, Lessor agrees, at the Lessee's expense, to enter into
       appropriate cross-easements with respect to any such Addition and its
       related Improvements so that both properties can be effectively and
       efficiently utilized; provided, however, that any Addition constructed by
       Lessee pursuant to this paragraph (b) shall contain heating, ventilating,

                                       21

<PAGE>

       cooling and life safety facilities and equipment separate and distinct
       from the Improvements, and shall not interfere with or overburden any
       sewer, water, natural gas, electric, telephone and other utilities
       serving the Improvements. The use and operation of such Addition shall
       not unreasonably interfere with the use and operation of the Property
       (except to the extent the Improvements and the Addition share equipment,
       facilities and parking areas pursuant to appropriate cross-easements) and
       shall not materially increase the cost of the use and operation of the
       Improvements.

(c)    If the Lessee is prevented from constructing an Addition or Alteration to
       a Property as a result of the operation of Section 9.2(d)(z) or the
       proviso which follows Section 9.2(d)(z), the Lessee may exercise its
       rights set forth in clause (iii) of the first sentence of Section 9.3 of
       the Participation Agreement if within 90 days after the Lessee has Actual
       Knowledge that it has been so prevented it sends written notice to the
       Lessor and the Indenture Trustee exercising such right and specifying the
       date of purchase pursuant to such clause (iii); provided however, that
       the Lessee may not purchase such Property under such clause (iii) if (1)
       within 15 days of the date of Lessee's written notice of such exercise
       the Indenture Trustee and the Lessor each waive the requirements set
       forth in Section 9.2(d)(z) and the proviso that follows Section 9.2(d)(z)
       and, as a result, permit the Alteration or Addition to be constructed on
       such Property or (2) within 15 days of the date of Lessee's written
       notice of such exercise, the Lessor elects to prepay the Allocable
       Portion of the Notes relating to such Property (and pay any related
       Redemption Premium pursuant to the Indenture it being agreed that such
       Redemption Premium shall be paid by the Lessee on the date specified in
       such election by the Lessee for the purchase of such Property), whereupon
       the Lessee may proceed to construct such Alteration or Addition, and such
       Property shall remain subject to this Lease and the Security Documents;
       provided that the Lessor may not so elect unless the Lessor shall have
       deposited with the Indenture Trustee funds sufficient to pay such
       Allocable Portion of the Notes and Redemption Premium in full on such
       date. There shall be no reduction of Basic Rent as a result of the
       prepayment contemplated in clause (2) of the immediately preceding
       proviso.

(d)    In the event an Addition or an Alteration would result in a decrease in
       value and/or residual value of a Property such that they would not be
       permitted pursuant to Section 9.2(a) or (b), the Lessee may nonetheless
       make such Addition or Alteration if (x) the other requirements of such
       Section 9.2(a) or (b) are satisfied, (y) the Lessee pays to the Lessor
       the present value of the amount of such diminution in residual value,
       discounted at 10.769% per annum, but grossed up so that the Lessor is
       whole on an After-Tax Basis and (z) the loan to value ratio for such
       Property does not increase above 90% when such Alteration or Addition is
       completed as determined before construction of such Addition or
       Alteration has commenced by comparing the Allocable Portion of the Notes
       for such Property to the expected Fair Market Sales Value of such
       Property after such Addition or Alteration, as determined by the
       Appraisal Procedure; provided that if at the time of the commencement of
       such Appraisal Procedure the Lessee making such Addition or Alteration
       does not satisfy the Rating Test then, if Notes are outstanding, no
       Addition or Alteration which decreases the value and/or residual value of
       a Property may be made; provided further that the preceding clause (z)
       and the preceding proviso shall only apply so long as the Notes
       originally issued under the Indenture remain outstanding and shall not
       apply during any period during which the maturity of such Notes has been
       extended for any reason. For the purpose of calculating the residual
       value pursuant to clause (x) above, each Property will be assumed to be
       terminated from this Lease on the date set forth in Schedule 2 or, if
       such calculation is being made following such date, on the next
       Anniversary on which such Property could be so terminated. The Lessee may
       not make such Additions or Alterations with respect to a

                                       22

<PAGE>

       Property if the aggregate payments made and to be made pursuant to this
       paragraph (before gross-up) will exceed 25% of the Lessor's Cost of such
       Property (as inflated in the same proportion that by CPI has increased
       from the month of June, 1997 to the most recent date prior to such
       payment as of which CPI has been published).

(e)    The Lessee shall make such Alterations to the Properties as may be
       required from time to time (i) to comply with all Applicable Laws and
       Regulations (subject to the contest rights set forth in Section 9.4) and
       with Section 9.1 and (ii) following a Casualty, Condemnation or Event of
       Loss (in any instance where the provisions of Section 14.1(ii) shall
       apply), to restore the Improvements to their respective condition prior
       to a Casualty or Condemnation, and will maintain such Alterations as
       provided in Section 9.1 hereof; provided that in the case of a
       Condemnation, the Lessee's obligation will be to restore the Improvements
       to such condition as close as possible under the circumstances to the
       condition prior to such Condemnation.

9.3    Title to Alterations

       Title to all Alterations shall without further act vest in the Lessor and
       shall be deemed to constitute a part of the related Property and be
       subject to this Lease in the following cases:

       (a)    such Alteration shall be in replacement of or in substitution for
              a portion of the Improvements;

       (b)    such Alteration shall be required to be made pursuant to the terms
              of Sections 9.1 or 9.2(e) hereof;

       (c)    such Alteration shall be Nonseverable;

       (d)    such Alteration shall be financed by or through the Lessor in
              accordance with Article XI of the Participation Agreement or
              otherwise; or

       (e)    such Alteration shall be Severable and is not removed by the
              Lessee upon the end of the Lease Term for the related Property.

       The Lessee shall, at the Lessor's request, execute and deliver any deeds
       or assignments reasonably necessary to evidence the vesting of such title
       in and to such Alterations in the Lessor. If such Alteration is not
       within any of the categories set forth in clauses (a) through (e) of this
       Section 9.3, then title to such Alteration shall vest in the Lessee or
       its designee.

9.4    Permitted Contests

       If, to the extent and for so long as (a) a test, challenge, appeal or
       proceeding for review of any Applicable Laws and Regulations relating to
       the use, operation or maintenance of the Properties or any Alterations to
       the Properties shall be prosecuted diligently and in good faith by the
       Lessee or (b) compliance with any Applicable Laws and Regulations shall
       have been excused or exempted by a valid nonconforming use permit,
       waiver, extension or forbearance, the Lessee shall not be required to
       comply with such Applicable Laws and Regulations as provided in this
       Article 9 or elsewhere in this Lease but only if and so long as no
       Special Default or Lease Event of Default shall have occurred and be
       continuing and such test, challenge, appeal, proceeding or noncompliance
       shall not involve (i) a material risk of foreclosure, sale, forfeiture or
       loss of any part of the Properties, (ii) a material risk of extending the
       ultimate imposition of such Applicable

                                       23

<PAGE>

       Laws and Regulations beyond the expiration of the related Property's
       Basic Term or then current Renewal Term, as the case may be, (iii) any
       risk of any criminal liability being imposed on the Lessor, the Indenture
       Trustee or the Pass Through Trustee, (iv) a material risk of any
       governmental or judicial action which might adversely affect the Lien of
       the Security Documents, or Lessor's ownership interests in the Properties
       or the value or utility of the Properties unless stayed during the
       pendency of any such test, challenge, appeal, proceeding or
       noncompliance, or (v) any material risk of material loss of enjoyment of,
       or material interference with, the use, possession or disposition of the
       Properties. Notwithstanding the foregoing, the Properties must be in
       compliance with Applicable Laws and Regulations at the time of any return
       of such Property to Lessor pursuant to Article 12 hereof.

       The Lessor will not be required to join in any proceedings pursuant to
       this Section 9.4 unless a provision of any Applicable Laws and
       Regulations requires, or in the good faith opinion of the Lessee, it is
       helpful to the Lessee that such proceedings be brought by or in the name
       of Lessor. In any such event, the Lessor will join in the proceedings or
       permit them to be brought in its name if the Lessee pays all related
       reasonable expenses. Lessor, at the cost and expense of Lessee, shall use
       reasonable good faith efforts to cooperate with Lessee in any such
       contest.

9.5    Environmental Compliance

       Lessee shall:

       (a)    maintain the Properties in compliance with all applicable
              Environmental Laws;

       (b)    not cause or permit the manufacture, use, generation,
              transportation, treatment, storage, Release, or handling of any
              Hazardous Material at the Properties in violation of Environmental
              Law;

       (c)    cause its sublessees and/or its or their respective agents,
              employees, contractors and invitees to comply with all applicable
              Environmental Laws with respect to the Properties;

       (d)    within ten (10) Business Days of learning of any Environmental
              Claim in connection with the Properties, notify the Lessor in
              writing thereof and provide the Lessor any reasonably requested
              documents related thereto; and

       (e)    upon the Lessor's request, promptly provide or otherwise make
              available to the Lessor any records concerning the Properties
              which are required to be maintained under any Environmental Law
              and which the Lessee then possesses or can reasonably obtain.

10.    USE AND LOCATION

10.1   Location

       The Lessee shall not remove, or permit to be removed, the Improvements or
       any part thereof from the Properties without the prior written consent of
       the Lessor, except that, subject to Article 12 hereof, the Lessee or any
       other Person may remove (a) in accordance with the provisions of Section
       9.3, any Alteration with respect to which title has passed to or remained
       with the Lessee pursuant to such Section 9.3, (b) any Improvements if
       title to such Improvements shall have passed to the Lessee, (c) any part
       of the Improvements on a temporary basis for the purpose of repair or
       maintenance thereof, (d) any part of the Improvement which has been
       replaced by

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<PAGE>

       another part which has become subject to this Lease and the Lien of the
       Security Documents or (e) any part of the Improvement which has become
       obsolete to the Lessee, whereupon such obsolete part shall cease to be
       subject to this Lease and the Lien of the Security Documents; provided
       that in the case of this clause (e) (i) the aggregate value of all such
       removed parts not given to Lessor shall not exceed $5,000,000 (in the
       aggregate for purposes of this Lease, (ii) the Lessee will cause such
       removal to be performed diligently, in good faith and in a good and
       workmanlike manner and in compliance with all Applicable Laws and
       Regulations, and will promptly and fully repair all damage to the
       Properties caused by such removal and (iii) the Lessee shall have made
       such Alterations or adjustments to the Properties as are necessary to
       assure that the functions served by any such removed parts shall continue
       to be provided by other parts of the Properties.

10.2   Use

       The Lessee may use and occupy the Properties for any Permitted Uses.
       Permitted Uses shall mean any lawful purposes except that no use may be
       made (whether by the Lessee or any assignee or sublessee of the Lessee or
       otherwise) which: (a) is a public or private nuisance or which violates
       any Applicable Laws and Regulations upon or in any Property or any
       portion thereof, (b) would void any certificate of occupancy required for
       a Property, (c) involves the mining or removal of any oil, gas or
       minerals, (d) results in any violation of any Environmental Law that
       results in any Environmental Claims from which any material Environmental
       Damages become due and owing, or otherwise in any manner involves any
       Release of Hazardous Materials into the environment except in compliance
       with all applicable Environmental Laws and Governmental Actions issued
       pursuant to Environmental Laws or that makes it impossible to obtain, or
       results in the cancellation of or breach of any representation or
       restriction under the policies of insurance required by Articles 11
       hereof; (e) is selling, renting or exhibiting pornographic material or
       other sexually explicit material (except as part of a magazine store
       customary for office buildings); or (f) is a massage parlor. Without
       limiting the foregoing, Lessee shall not permit the handling, processing,
       storage or disposal of Hazardous Materials on or at the Properties except
       to the extent incidental to or required for the conduct of a Permitted
       Use or a permitted Alteration, and then only in compliance with all
       applicable Environmental Laws.

11.    INSURANCE

11.1   Coverage

       Subject to the Lessee's rights of self-insurance set forth in this
       Section 11.1, the Lessee shall maintain:

       (a)    standard all-risk property insurance covering the Improvements in
              an amount at least equal to the replacement cost of the
              Improvements, but not less than the outstanding principal balance
              of the Notes;

       (b)    "boiler and machinery" insurance with respect to damage (not
              insured against pursuant to Section 11.1(a) hereof) to the
              boilers, pressure vessels or similar apparatus located on the
              Properties for risks normally insured against under boiler and
              machinery policies;

       (c)    commercial general liability insurance including broad form
              contractual liability coverage with minimum combined single limits
              of $2,000,000 (except when the Security Documents shall no longer
              be in effect said limit shall be $1,000,000) for injury to or

                                       25

<PAGE>

              death of one or more Persons or damage to or destruction of
              property in any one occurrence;

       (d)    umbrella/excess liability insurance over the insurance required by
              subsection (c) with combined minimum coverage of $5,000,000
              written on an occurrence form coverage basis;

       (e)    statutory workers' compensation insurance or qualified
              self-insurance;

       (f)    flood insurance with respect to those portions of the Properties
              that are located in areas identified by the Federal Emergency
              Management Agency as having special hazards; and

       (g)    builder's risk coverage during construction.

       The insurance required to be maintained pursuant to this Lease shall be
       no less favorable than that maintained on the Lessee's other properties
       and shall be written by companies of reputable standing.

       Any of the foregoing insurance coverages may be carried as a part of
       blanket policies, provided that (i) upon the Lessor's request, the
       insurer under such blanket policy(ies) shall certify to the Lessor and
       the Indenture Trustee any sublimits applicable to the Properties, which
       amounts shall not be less than those required by this Section 11.1; (ii)
       any such policy(ies) shall otherwise comply with the requirements of this
       Article 11; and (iii) the protection afforded, except for the exhaustion
       of aggregate limits, under any such policy(ies) shall be no less than
       that which would have been afforded under a separate policy or policies
       relating only to the Properties.

       Notwithstanding the preceding provisions of this Section 11.1, the Lessee
       shall be entitled to self-insure and/or have deductibles against all
       risks described in Section 11.1(a)-(g) so long as the Lessee satisfies
       the Rating Test. In the event the Lessee fails in part or whole to carry
       insurance which complies with the requirements of this Article 11, if the
       Lessee is then entitled to self-insure the Lessee will not be deemed to
       be in breach of this Lease, but will be deemed to self-insure to the
       extent of such noncompliance. If the Lessee does not satisfy the Rating
       Test, then the amount of permitted self insurance and/or deductibles with
       respect to the Lessee shall not exceed $5,000,000 in the aggregate for
       the lines of insurance specified in Sections 11.1(a), (b), (f) and (g)
       and $5,000,000 in the aggregate for the lines of insurance specified in
       Sections 11.1(c), (d) and (e). To the extent the Lessee is not permitted
       to self-insure under the terms hereof, each insurer must have a claims
       paying ability rating of "A" or better from Duff & Phelps and "A" or
       better from Moody's, or if an insurer is not rated by Duff & Phelps or
       Moody's, it has an equivalent rating from at least one other nationally
       recognized statistical agency. In the event the Lessee does not satisfy
       the Rating Test (with the definition thereof modified to change the "BBB"
       referenced therein to "BBB-" and the "Baa2" referenced therein to
       "Baa3"), then the Lessee's maximum deductibles shall be the lesser of
       that described in the second preceding sentence or the standard
       deductible for comparable buildings in the same region as certified in
       writing by a national insurance broker or agency. The two preceding
       sentences shall be void and of no effect after the Security Documents are
       no longer in effect. The Lessor shall be entitled to maintain insurance
       coverage with respect to the Properties, provided that such insurance
       shall not increase the cost to the Lessee of carrying, or interfere with
       the ability of the Lessee to carry, insurance with respect to the
       Properties.

                                       26

<PAGE>

11.2   Policy Provisions

       Any insurance policy required to be maintained by the Lessee pursuant to
       Section 11.1 shall:

       (a)    specify the Lessee as the insured and the Lessor, the Pass Through
              Trustee (in both its individual and trust capacities) and the
              Indenture Trustee (in both its individual and trust capacities) as
              additional insureds as to all such insurances (except the
              insurance described in Section 11.1(e));

       (b)    provide, in the case of insurance carried pursuant to Section
              11.1(a) and (b), that all insurance proceeds in respect of any
              loss or occurrence (i) shall be adjusted with the Lessee, unless
              and only for so long as a Special Default or a Lease Event of
              Default shall be continuing, in which case such proceeds shall be
              adjusted solely with the Lessor and (ii) shall be payable (x) if
              no Special Default or Lease Event of Default is continuing, to the
              Lessee in accordance with Section 14.2, and (y) in all other
              circumstances unless and until the Indenture shall have been
              satisfied and discharged in accordance with Section 11.01 thereof,
              to the Indenture Trustee and thereafter, to the Lessor;

       (c)    provide that in respect of the interests of the Lessor, the Pass
              Through Trustee and the Indenture Trustee, such policies shall not
              be invalidated by any action or inaction of the Lessee or any
              other Person (other than the Person making the claim thereunder)
              and shall insure the Lessor, the Pass Through Trustee and the
              Indenture Trustee regardless of, and any claims for losses shall
              be payable notwithstanding:

              (i)     any act of negligence, including any breach of any
                      condition or warranty in any policy of insurance, of the
                      Lessee or any other Person (other than the Person making
                      the claim thereunder);

              (ii)    the occupation or use of the Properties for purposes more
                      hazardous than permitted by the terms of the policies;

              (iii)   any foreclosure or other proceeding or notice of sale
                      relating to any of the Properties; and

              (iv)    any change in the title to or ownership of any of the
                      Properties after the Lessee and its insurance underwriter
                      has notice of such change in title or ownership;

       (d)    provide that such insurance shall be primary insurance and that
              the insurers under such insurance policies shall be liable under
              such policies without right of contribution from any other
              insurance coverage effected by or on behalf of the Lessor, the
              Pass Through Trustee or the Indenture Trustee under any other
              insurance policies covering a loss that is also covered under the
              insurance policies maintained by the Lessee pursuant to this
              Article 11 and shall expressly provide that all provisions
              thereof, except the limits of liability (which shall be applicable
              to all insureds as a group) and liability for premiums (which
              shall be solely a liability of the Lessee), shall operate in the
              same manner as if there were a separate policy covering each
              insured;

       (e)    provide that any cancellation (except at the request of the
              Lessee) thereof shall not be effective as to the Lessee, the
              Lessor, the Pass Through Trustee and the Indenture Trustee

                                       27

<PAGE>

              until at least 30 days after receipt by the Lessee, the Lessor,
              the Pass Through Trustee and the Indenture Trustee of written
              notice thereof;

       (f)    waive any right of subrogation of the insurers against the Lessor,
              the Pass Through Trustee and the Indenture Trustee, and waive any
              right of the insurers to any setoff or counterclaim or any other
              deduction, whether by attachment or otherwise, in respect of any
              liability of the Lessor, the Pass Through Trustee and the
              Indenture Trustee; and

       (g)    provide that the whole or any part of the right, title and
              interest of the Lessor therein may be assigned to the Indenture
              Trustee.

11.3   Evidence of Insurance

       If the Lessee fails to satisfy the Rating Test at any time during the
       Lease Term, then the Lessee shall promptly (and in any event within 30
       days) deliver to the Lessor, the Pass Through Trustee and the Indenture
       Trustee evidence of all insurance coverages as required by this Article
       11 and annually thereafter until such time as the Lessee satisfies the
       Rating Test, the Lessee shall deliver to the Lessor, the Pass Through
       Trustee and the Indenture Trustee certificates of insurance evidencing
       the provisions described in Section 11.2(a) through (g) executed by the
       insurer or its duly authorized agent and stating that in the opinion of
       such issuer or its agent that such insurance complies with the provisions
       of this Article 11, and if the signer of such certificate is unwilling to
       make such statement on a full recourse basis, such certificate shall be
       accompanied by an Officer's Certificate of the Lessee which also
       certifies as to such matters.

12.    RETURN OF LEASED PROPERTY

       With the exception of any Properties which have been transferred, or
       leased under a FMV Lease or a Partial Occupancy Lease, to the Lessee
       pursuant to Article 3, 6, 14 or 19 of this Lease or Article IX of the
       Participation Agreement, the Lessee shall, on the expiration or earlier
       termination of this Lease with respect to a Property, and at its own
       expense, return such Property to the Lessor by surrendering the same into
       the possession of the Lessor free and clear of all Liens other than (i)
       Lessor Liens, Remainderman Liens, and Indenture Trustee Liens, (ii) Liens
       described in clauses (a), (f) or (g) (to the extent expressly permitted
       to survive termination of this Lease), of the definition of Permitted
       Liens except that solely for purposes of this sentence, clause (f)(z) of
       the definition of Permitted Liens shall be deemed to read: "(z) singly or
       in the aggregate do not (i) reduce, other than to a de minimis extent,
       the Fair Market Sales Value of the applicable Property, (ii) materially
       interfere with or result in a detriment to the conduct of the Lessee's
       business on the Properties pursuant to the Lease, (iii) impair, other
       than to a de minimis extent, the usefulness of the applicable Property or
       (iv) impair the Lessor's interest or the Indenture Trustee's Lien on any
       portion of the Estate" and (iii) inchoate Liens for taxes which are not
       yet due, and in the condition required by this Lease (as modified by
       Alterations permitted by this Lease), ordinary wear and tear excepted;
       provided that any Improvements removed from the Properties pursuant to
       Section 10.1(c) shall have been returned to and reinstalled on such
       Properties. When the proposed parking facility (Parcel 2) located in St.
       Petersburg, Florida is returned to Lessor, it shall be free of asbestos
       and the office building, drive-through facilities, freestanding automated
       teller machines, and cash vault portion of such parking facility shall
       have been razed and all debris removed.

       Each Property when returned shall either be in "core and shell" condition
       or shall be in a condition such that such Property can be put to the same
       general use as such Property was used

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<PAGE>

       on the Closing Date (it being understood that a Property which is an
       office building may have retail space customary for the location of such
       Property) or, at the Lessee's election, if a Property is not then in
       either of such conditions, the Lessee may instead pay the Lessor in cash
       the reasonable cost of converting such Property to be in either such
       conditions, as the Lessee may elect (which payment shall include any
       expected loss of revenue to the Lessor during the time of conversion). If
       such cost cannot be agreed by the Lessor and the Lessee it shall be
       determined by the Appraisal Procedure.

       If the Lessee desires to remove any Severable Alteration from a Property
       during the 360 days prior to the return of such Property to Lessor
       (unless such return is a result of a Lease Event of Default, Event of
       Taking or Event of Loss), title to which is vested in Lessee pursuant to
       Section 9.3 hereof, the Lessee shall give Lessor at least 90 days prior
       written notice and Lessor shall have the right to purchase any such
       Severable Alteration for its Fair Market Sales Value. Any such Alteration
       or other property of the Lessee which is not removed prior to the time of
       return shall, at Lessor's option, be removed by the Lessee at the
       Lessee's expense or become the property of Lessor and title thereto shall
       vest in Lessor.

13.    ASSIGNMENT

       The Lessee may (at the Lessee's expense) assign all of its right, title
       or interest in, to or under this Lease as to one or more Properties
       provided no Lease Event of Default or Special Default is then continuing.
       An assignment of the Lessee's rights under this Lease as to less than all
       of the Properties shall be effectuated by the execution by Lessor and the
       Lessee of an amendment of this Lease removing such Properties from the
       terms hereof and the execution and delivery of a separate lease of the
       Properties which are the subject of Lessee's assignment, which lease
       shall be on the same terms and conditions as this Lease except that Basic
       Rent and Stipulated Loss Values shall relate only to the Properties which
       are the subject of such assignment. In connection with any such
       assignment, the parties will negotiate such amendments to the Operative
       Documents as are necessary to effectuate the foregoing and the Lessee
       shall pay all parties' costs and expenses (including reasonable attorneys
       fees and expenses) in connection therewith. In the event of an assignment
       of all of the Lessee's rights under this Lease, the new lessee shall
       assume all of the Lessee's obligations hereunder. Notwithstanding any
       assignment by the Lessee, all obligations of the Lessee shall continue in
       full effect as obligations of a principal and not of a guarantor or
       surety, as though no assignment had been made. The Lessee will notify the
       Lessor and the Indenture Trustee of any such assignment and will provide
       the Lessor and the Indenture Trustee with a copy of such assignment at
       the Lessor's request.

14.    LOSS, DESTRUCTION, CONDEMNATION OR DAMAGE

14.1   Payment of Stipulated Loss Value on an Event of Loss

       If an Event of Loss shall occur with respect to a Property, the Lessee
       shall give the Lessor and the Indenture Trustee prompt written notice of
       such occurrence and the date thereof and the Lessee may elect one of the
       following options (it being agreed that (x) if the Lessee shall not have
       made the offer referred to in the following clause (i) within 60 days of
       the occurrence of the Event of Loss, the Lessee shall be deemed to have
       elected the option set forth in the following clause (ii) and (y) if it
       is impossible to restore, repair, replace or rebuild such Property, the
       Lessee must elect the following clause (i)):

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<PAGE>

              (i)     offer to purchase such Property from the Lessor on a
                      Stipulated Loss Value Date not less than 90 or more than
                      270 days after the date such offer is made at a purchase
                      price equal to the sum of (A) Stipulated Loss Value of
                      such Property determined as of such Stipulated Loss Value
                      Date, plus (B) all Supplemental Rent due and owing on such
                      Stipulated Loss Value Date (including, without limitation,
                      any transfer taxes and other expenses associated with such
                      transfer which are indemnifiable under Article VIII of the
                      Participation Agreement) plus (C) all Basic Rent due and
                      owing on Rent Payment Dates on or prior to such Stipulated
                      Loss Value Date (but not Basic Rent payable in advance on
                      such Stipulated Loss Value Date), in which case the Lessor
                      shall have 60 days from the date of receipt of the
                      Lessee's offer to decide whether or not to accept such
                      offer; or

              (ii)    promptly, and in any event within 90 days of the
                      occurrence of such Event of Loss, begin the process of
                      restoring, repairing, replacing or rebuilding the
                      Improvements which were damaged as a result of such Event
                      of Loss and diligently pursue such rebuilding and repair
                      so as to restore the affected Property or Properties to at
                      least the value, residual value and useful life thereof
                      immediately prior to the occurrence of such Event of Loss
                      assuming such Property was in the condition required by
                      this Lease. If the Lessee and the Lessor cannot agree as
                      to such value, such value will be determined by the
                      Appraisal Procedure. The Casualty Restoration Costs shall
                      be paid first out of the Lessee's own funds to the extent
                      the Casualty Restoration Costs exceed the Net Casualty
                      Proceeds actually received and then out of the Net
                      Casualty Proceeds.

       If the Lessee makes an offer to purchase a Property pursuant to Section
       14.1(i) and the Lessor accepts such offer or fails to respond to such
       offer within the 90-day period referenced in Section 14.1(i), the Lessee
       shall pay the purchase price specified in Section 14.1(i) to the Lessor
       on such Stipulated Loss Value Date; provided that any Net Casualty
       Proceeds then held by the Lessor or the Indenture Trustee shall be
       credited against such purchase price and any Net Casualty Proceeds
       remaining or collected after payment in full of all such amounts payable
       pursuant to Section 14.1(i) shall be paid to or retained by the Lessee.
       Upon payment in full of all amounts payable pursuant to Section 14.1(i),
       (w) subject to Section 11.01 of the Indenture, such Property shall be
       released from the Lien of the Security Documents, (x) the Lease Term
       shall end with respect to such Property, (y) the obligations of the
       Lessee hereunder with respect to such Property (other than any
       obligations expressed herein as surviving termination of this Lease)
       shall terminate as of the date of such payment and (z) the Lessor shall
       transfer to the Lessee, or if the Lessee shall so designate, to the
       property damage insurer, without recourse or warranty but free and clear
       of Lessor Liens, all right, title and interest of the Lessor in, to and
       under such Property including all related Net Proceeds not otherwise
       retained by the Lessee or credited against the purchase price as provided
       above.

       In the event that the Lessor rejects the offer of the Lessee (which the
       Lessor may do only if it has deposited funds sufficient to pay all
       amounts due and owing on the Notes as of such Stipulated Loss Value
       Date), to purchase such Property as provided in clause (i) of this
       Section 14.1 at the purchase price stated therein, the following amount
       shall be paid to or retained (in the case of the proceeds of insurance)
       by the Lessor: the sum of (A) all insurance proceeds payable under the
       policy or policies of insurance required by this Lease, plus (B) an
       amount equal to the deductible

                                       30

<PAGE>

       under such policy or policies, plus (C) any amounts the Lessee has chosen
       to self-insure up to Stipulated Loss Value of such Property (the amounts
       described in clauses (A), (B) and (C) being collectively referred to as
       the Insurance Proceeds) plus (D) all Supplemental Rent then due, plus (E)
       accrued but unpaid Basic Rent due as of such date (but not Basic Rent
       payable in advance on the Stipulated Loss Value Date). Upon payment in
       full of such amount (1) the Lease Term shall end, and (2) the obligations
       of the Lessee hereunder (other than any obligations expressed herein as
       surviving termination of this Lease) with respect to the Property or
       Properties suffering such Event of Loss shall terminate as of the date of
       such payment. If the Lessor elects to reject the offer of the Lessee
       hereunder to purchase such Property pursuant to this Section 14.1, such
       notice of rejection shall be deemed effective only if it is countersigned
       by the Indenture Trustee if the Lien of the Security Documents is then in
       effect.

       If the Lessee elects Section 14.1(ii) with respect to a Property, the
       Lessee may request that the Lessor obtain (at the Lessee's expense) an
       opinion from counsel reasonably selected by Lessor to determine whether
       such election shall result in any amounts becoming due under the Tax
       Indemnification Agreement. The Lessor shall obtain such opinion within 30
       days of such request. If (x) such opinion concludes that it is more
       likely than not that an amount in excess of $200,000 shall be so due or
       (y) Lessor does not obtain any such opinion within such 30 day period,
       the Lessee may, within 20 days of receipt of such opinion or of the end
       of such 30 days period, whichever is earlier, elect to offer to purchase
       such Property by payment of the amounts described in Section 14.1(i),
       whereupon the Lessor and the Lessee shall proceed as if the offer
       contemplated by Section 14.1(i) had been made.

14.2   Application of Payments When Lease Continues

       Payments (except for payments under insurance policies maintained other
       than pursuant to Article 11 of this Lease) received at any time by the
       Lessor, the Indenture Trustee or the Lessee from any Governmental
       Authority or other Person with respect to any Condemnation or Casualty to
       a Property or any part thereof or with respect to an Event of Loss not
       resulting in a termination of this Lease, shall (except to the extent
       Section 14.5 applies) be paid to the Indenture Trustee and then
       immediately to the Lessee, to be applied, as necessary, for the repair or
       restoration of such Property and Improvements and any excess remaining
       thereafter shall, in the case of a Casualty or Event of Loss not
       resulting in a termination of this Lease, be retained by the Lessee, and,
       in the case of a Condemnation, to the extent the Lessee cannot rebuild
       and restore the affected Property to its value, residual value and useful
       life as existed immediately prior to such Condemnation, excess amounts
       shall be for the account of the Lessee and the Lessor, as their interests
       may appear. All such repair and restoration shall be effected by the
       Lessee in compliance with the requirements of Section 9.1 and Section
       9.2.

       The Lessee shall maintain records for three years setting forth
       information relating to the receipt and application of payments in
       accordance with this Section 14.2. Such records shall be kept on file by
       the Lessee at its offices and shall be made available to the Lessor and
       the Indenture Trustee upon request.

       From and after a Condemnation, Casualty or Event of Loss and during or
       prior to any period of repair or rebuilding pursuant to this Article 14,
       this Lease will remain in full force and effect and Rent shall continue
       to accrue and be payable without abatement or reduction.

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<PAGE>

14.3   Payment of Stipulated Loss Value on an Event of Taking

       If an Event of Taking shall occur with respect to a Property, the Lessee
       shall give the Lessor, the Pass Through Trustee and the Indenture Trustee
       prompt written notice of such occurrence and the date thereof, and the
       Lessee shall offer to purchase the affected Property from the Lessor on a
       Stipulated Loss Value Date not less than 90 or more than 270 days after
       the Event of Taking at a purchase price equal to the sum of (A)
       Stipulated Loss Value with respect to such Property determined as of such
       Stipulated Loss Value Date, plus (B) all Supplemental Rent due and owing
       on such Stipulated Loss Value Date (including, without limitation, any
       transfer taxes and other expenses associated with such transfer which are
       indemnifiable under Article VIII of the Participation Agreement), plus
       (C) all Basic Rent due and owing with respect to Rent Payment Dates on or
       prior to such Stipulated Loss Value Date (but not Basic Rent payable in
       advance on the Stipulated Loss Value Date). If the Lessor accepts such
       offer, or fails to respond to such offer within 90 days of its receipt of
       such notice, the Lessee shall pay the purchase price set forth in the
       preceding sentence on such Stipulated Loss Value Date, provided that the
       Net Condemnation Proceeds then held by the Lessor or the Indenture
       Trustee will first be allocated among the Lessee and the Lessor as their
       interests appear and, second, the amounts allocated to the Lessee and the
       Lessor shall be applied in reduction of the Lessee's obligation to pay
       the purchase price for such Property, if not already paid by the Lessee,
       and the balance, if any, of the Net Condemnation Proceeds received or
       remaining thereafter shall be divided between the Lessor and the Lessee
       as their interests appear, or if the purchase price for such Property has
       already been paid by the Lessee, the Net Condemnation Proceeds shall be
       divided between the Lessor and the Lessee as their interests appear. If
       the Lessor rejects such offer within such 90-day period, the Net
       Condemnation Proceeds will first be allocated among the Lessee and the
       Lessor as their interests appear and, second, the amounts allocated to
       the Lessee and the Lessor shall be paid over to, and retained by, the
       Lessor up to said Stipulated Loss Value and any excess Net Condemnation
       Proceeds shall be divided between the Lessor and the Lessee as their
       interests may appear; provided that if the parties cannot agree upon such
       allocation of the excess Net Condemnation Proceeds, the Lessor and the
       Lessee agree to submit the matter to a mutually agreed upon method of
       arbitration. The Lessee may file a separate claim for its own losses
       (such as loss of fixtures, equipment and alterations owned by it) and
       moving and relocation expenses so long as such claim does not reduce the
       amount payable to the Lessor on account of its interest in the
       Properties. Upon distribution of the Net Condemnation Proceeds as
       provided in this Section 14.3, in respect of amounts due under this
       Section 14.3, and payment of the sum of (A) all Supplemental Rent then
       due, plus (B) all Basic Rent-due on such date (but not Basic Rent payable
       in advance on the relevant Stipulated Loss Value Date), (1) the Lease
       Term shall end for such Property, (2) the obligations of the Lessee
       hereunder (other than any obligations expressed herein as surviving
       termination of this Lease) shall terminate with respect to the affected
       Property as of the date of such payment and (3) in the case of the
       purchase of the affected Property by the Lessee as provided in this
       Section 14.3, the Lessor shall transfer to the Lessee, or if the Lessee
       shall so designate, the condemning authority, without recourse or
       warranty but free and clear of Lessor Liens all right, title and interest
       of the Lessor in, to and under the affected Property shall be released
       from the Lien of the Security Documents, subject to Section 11.01 of the
       Indenture. If the Lessor elects to reject the offer of the Lessee
       hereunder to purchase such Property pursuant to this Section 14.3, it
       must prepay the Allocable Portion of the Notes with respect to such
       Property and the notice of rejection shall be deemed effective only if it
       is countersigned by the Indenture Trustee. Upon all payments due under
       this Section 14.3, with respect to a Property, (1) the Lease Term will
       end for such Property, and (2) the obligations of the Lessee hereunder
       (other than any

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       obligations expressed herein as surviving termination of this Lease) with
       respect to such Property shall terminate.

14.4   Application of Certain Payments Not Relating to an Event of Taking

       In case of a Condemnation, this Lease shall remain in full force and
       effect, without any abatement or reduction of Basic Rent, and the Net
       Condemnation Proceeds shall, unless a Special Default or a Lease Event of
       Default has occurred and is continuing, be paid as set forth in Section
       14.2, except that any portion of the Net Condemnation Proceeds that was
       awarded with respect to the time period after the expiration or
       termination of the Lease Term shall be paid to the Lessor.

14.5   Other Dispositions

       Notwithstanding the foregoing provisions of this Article 14, so long as a
       Special Default or a Lease Event of Default shall have occurred and be
       continuing, any amount that would otherwise be payable to or for the
       account of, or that would otherwise be retained by, the Lessee pursuant
       to this Article 14 shall be paid to the Indenture Trustee (or to the
       Lessor after the Security Documents shall have been satisfied and
       discharged) as security for the obligations of the Lessee under this
       Lease and, at such time thereafter as no Special Default or Lease Event
       of Default shall be continuing, such amount shall be paid promptly to the
       Lessee.

14.6   Negotiations

       In the event any part of the Properties becomes subject to Condemnation
       or Event of Taking proceedings, the Lessee shall give notice thereof to
       the Lessor, the Pass Through Trustee and the Indenture Trustee promptly
       after the Lessee has knowledge thereof and shall control the negotiations
       with the relevant Governmental Authority unless a Lease Event of Default
       shall be continuing, in which case the Lessor shall control such
       negotiations; provided that in any event the Lessor may participate at
       the Lessee's expense in such negotiations, and no settlement will be made
       without Lessor's prior consent, not to be unreasonably withheld. The
       Lessee shall give to the Lessor, the Pass Through Trustee and the
       Indenture Trustee such information, and copies of such documents, which
       relate to such proceedings, or which relate to the settlement of amounts
       due under insurance policies required by Article 11, and are in the
       possession of the Lessee, as are reasonably requested by the Lessor, the
       Pass Through Trustee or the Indenture Trustee.

14.7   No Rent Abatement

       Rent shall not abate hereunder by reason of any Casualty, Event of Loss
       or Condemnation when this Lease does not terminate pursuant to the terms
       hereof, and the Lessee shall continue to perform and fulfill all of the
       Lessee's obligations, covenants and agreements hereunder notwithstanding
       such Casualty, Event of Loss or Condemnation.

14.8   Investment

       The Lessor agrees that, in accordance with Section 10.09 of the
       Indenture, to the extent the Lessor can control how any funds held by the
       Indenture Trustee pursuant to this Article 14 are invested, the Lessor
       shall follow the instructions of the Lessee with respect to the nature
       and timing of such investments unless a Special Default or a Lease Event
       of Default has occurred and is continuing.

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<PAGE>

15.    INTEREST CONVEYED TO LESSEE

       This Lease is an agreement of lease and the Lessor does not convey to the
       Lessee any right, title or interest in or to the Properties except as a
       lessee.

16.    SUBLEASE

16.1   Sublease Requirements

       The Lessee may sublease the Properties or any part thereof to any Person,
       on such terms and conditions as the Lessee may desire in its sole
       discretion, without the consent of the Lessor; provided, however, that
       (i) any such sublease shall not release the Lessee from any of its
       obligations or liabilities under this Lease of any nature whatsoever;
       (ii) any such sublease shall be expressly subject and subordinate to this
       Lease and the Lien of the Security Documents; (iii) no such sublease may
       be entered into if a Lease Event of Default or a Special Default has
       occurred and is continuing; (iv) any sublessee shall not be bankrupt at
       the inception of the sublease and shall be permitted to use the
       Properties only for the purposes permitted under this Lease; (v) any such
       sublease shall not increase the Lessor's, the Indenture Trustee's or the
       Pass Through Trustee's exposure to the risk of Environmental Claims being
       made against it; and (vi) any such sublease of a Property or any portion
       thereof shall be for a term that does not extend beyond the Lease Term
       with respect to such Property (including any then exercised Renewal
       Terms). Notwithstanding the foregoing, any Existing Subleases shall not
       be subject and subordinate to this Lease or the Lien of the Security
       Documents and may, to the extent permitted under such Existing Sublease
       on the date of this Lease, extend beyond the Lease Term with respect to
       the related Property.

       Notwithstanding clauses (ii) and (vi) of the immediately preceding
       paragraph, the Lessee may enter into subleases which extend beyond the
       Lease Term (including any then exercised Renewal Term), provided that the
       following criteria are met at the inception of such sublease (the
       NonDisturbance Criteria):

              (i)     each such sublease agreement shall be in substantially the
                      form of Exhibit B to this Lease; provided, however, that
                      Lessor agrees to approve such reasonable variations in the
                      form of such sublease agreement as are requested by Lessee
                      on a case-by-case basis in order to facilitate specific
                      subleases which otherwise satisfy the Non-Disturbance
                      Criteria;

              (ii)    the net effective rent, taking into account all economic
                      terms, must be at least equal to the Fair Market Rental
                      Value for comparable space in comparable buildings for a
                      like term with a tenant of comparable financial
                      creditworthiness;

              (iii)   for subleases in excess of 20,000 Square Feet, the
                      sublessee thereunder must provide evidence reasonably
                      satisfactory to the Lessor that such sublessee has
                      reasonably foreseeable financial ability to perform its
                      obligations under the sublease;

              (iv)    for subleases with Affiliates of the Lessee, the Lessor
                      must consent, which consent will not be unreasonably
                      withheld, or at the option of the Lessee, a third party
                      independent appraiser acceptable to Lessee and Lessor must
                      opine that the rents of the sublease comply with (ii)
                      above;

                                       34

<PAGE>

              (v)     [reserved];

              (vi)    the basic term of the sublease must not extend beyond 10
                      years, and any renewal terms must be at Fair Market Rental
                      Value and must not extend, collectively, beyond an
                      additional five years;

              (vii)   basic and renewal rents under the sublease must be
                      adjusted for CPI increases, or for a fixed increase of at
                      least 2% per year, every five years, and basic rents of
                      the sublease must not decrease;

              (viii)  the present value of all rent concessions (including free
                      rent, rent credits, rental abatements, tenant improvement
                      allowances, moving allowances, space assumption or similar
                      concessions or any other related transaction) during the
                      basic term of the sublease must not exceed 20% of the
                      present value (calculated using a discount rate equal to
                      the Interest Rate, as adjusted for monthly compounding) of
                      the scheduled basic rent payable during the basic term of
                      the sublease;

              (ix)    the sublease must include provisions that obligate the
                      sublessee to pay its prorata share of operating expenses
                      of the Property in accordance with relevant market
                      practice at the time;

              (x)     sublease tenant improvements must not require
                      extraordinary removal or modification to render the space
                      usable by subsequent tenants;

              (xi)    the sublessee's share of reserved parking spaces related
                      to such Property, if any, must be no more than the
                      sublessee's share of Square Feet in such Property; and

              (xii)   the sublease must be subject to common area agreements
                      governing parking and maintenance of parking areas.

       In the event that the Lessor and the Lessee cannot agree on whether any
       element of the Non-Disturbance Criteria has been satisfied, an
       independent third party agreed upon by the Lessor and the Lessee shall
       conclusively determine such issue. If such a third party is not agreed
       upon by both parties within 10 days of request therefor by either party,
       then either party may apply to the American Arbitration Association to
       appoint such a third party.

       If, in connection with any sublease, the Lessee requests that the Lessor
       confirm its agreement that the Non-Disturbance Criteria have been met,
       the Lessor shall respond in writing to any such request within 10
       Business Days of receipt of such request. Such request, when made, shall
       be accompanied by copies of materials relevant to the determination that
       the Non-Disturbance Criteria have been met. If the Lessor does not
       respond to the Lessee's request in writing, either confirming that the
       Non-disturbance Criteria have been satisfied, or as described in the next
       sentence, by the end of such 10-Business-Day period, the Lessor shall be
       deemed to have confirmed that the Non-Disturbance Criteria have been met
       for all purposes under this Lease. If the Lessor expresses to the Lessee
       in writing within the relevant response period that, in the Lessor's
       opinion, one or more of the Non-disturbance Criteria have not been met,
       the Lessor must specify in such writing the reasons underlying such a
       conclusion in reasonable detail.

                                       35

<PAGE>

       If the Non-Disturbance Criteria are met, the Lessor and the Indenture
       Trustee irrevocably agree that, subject to the terms of the Subordination
       and Non-disturbance Agreement relating to such Senior Sublease, if any,
       notwithstanding the exercise by the Lessor and the Indenture Trustee of
       any rights under Article 19 (including but not limited to proceedings for
       eviction, termination or other enforcement action) or any termination of
       this Lease prior to the expiration of the Lease Term or any then
       exercised Renewal Term, the possession and other rights of the sublessee
       under such Senior Sublease shall not be disturbed or affected by the
       Lessor or the Indenture Trustee so long as no default by the sublessee
       exists under the terms of such Senior Sublease (after notice and an
       opportunity to cure, if any, as provided in the Senior Sublease). In the
       event of termination of this Lease as to any Property, all sublessees in
       such Property under Senior Subleases shall (unless such a default by such
       sublessee exists) continue as direct lessees from the Lessor, upon and
       subject to the terms and conditions of the Senior Sublease and such
       sublessees will attorn to the Lessor. Lessor shall deliver to the Lessee,
       for the benefit of the applicable sublessee under the Senior Sublease,
       within ten (10) Business Days after the Lessee's request, a confirmation
       of such attornment in favor of the Lessor, by executing a Subordination
       and Non-disturbance Agreement.

       When an Event of Default is continuing, the rights of the Lessor to
       determine whether Non-Disturbance Criteria have been satisfied, and to
       waive portions of such Non-Disturbance Criteria, shall be exercisable by,
       or subject to the approval of, the Indenture Trustee (or its agent), but
       otherwise such rights shall not be exercisable by or subject to the
       consent or approval of the Indenture Trustee (or its agent). The
       Indenture Trustee shall join in executing each Subordination and
       Nondisturbance Agreement whenever the Lessor does, upon request of
       Lessor, unless an Event of Default is then continuing.

       No sublease of a Property shall release the Lessee from any liability or
       from the performance of any of the Lessee's duties and obligations under
       this Lease and the other Operative Documents to which the Lessee is a
       party. If this Lease is terminated as to a certain Property, the Lessee
       shall not be liable to the Lessor for any obligations or responsibilities
       of any sublessees remaining in such Property, except to the extent such
       obligations arise from or relate solely to the sublessees' possession of
       such Property prior to the termination of this Lease with respect to such
       Property.

       The Lessee shall be entitled to retain any or all rent or other amounts
       paid under any sublease of the Properties during the Lease Term; provided
       that so long as a Lease Event of Default is continuing, the Lessee shall,
       if the Lessor so requests, direct sublessees to pay all rent or other
       amounts due under their subleases to the Lessor or as it may direct.

       In the event the Lessee exercises its rights under Section 6.1 hereof to
       terminate the Lease with respect to a Property, on the date on which
       Lessee's election to terminate becomes irrevocable, Lessor shall have the
       right, either itself or by agents engaged by Lessor (which engagement may
       occur by an assumption by Lessor of Lessee's leasing agency agreements,
       if any) to market any unleased space in such Property.

       Lessee shall not amend any Senior Sublease without the written consent of
       Lessor and Indenture Trustee if such amendment results in a breach of any
       of the conditions listed in clauses (i)-(xii) above. Subject to the
       immediately preceding sentence, the Lessor shall, at Lessee's request,
       approve any amendment, modification, assignment, subletting, extension,
       renewal or prepayment of any sublease (with respect to which a
       Subordination and Non-disturbance Agreement is in effect) if the effect
       thereof does not result in a breach of any of the conditions listed in
       clauses (i)-(xii) above or any other provision of the Operative Documents
       to which the Lessee is a party.

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16.2     Assignment of Subleases

(a)      Existing Subleases are hereby assigned by Lessor to Lessee for the
         Lease Term, and the Lessee assumes and agrees to perform each and every
         obligation of the landlord with respect to the Existing Subleases
         affecting the Properties, whether such obligations accrued prior to the
         Basic Term Commencement Date or accrue during the period from and after
         the Basic Term Commencement Date to the date such Existing Subleases
         are absolutely reassigned to Lessor as provided in Section 16.2(c)
         hereof.

(b)      The Lessee hereby collaterally reassigns to Lessor, as security for the
         performance of the Lessee's obligations hereunder, all of the Lessee's
         right, title and interest in and to (1) each Existing Sublease and (2)
         each and every sublease that the Lessee has entered into or may enter
         into with respect to any Property from time to time after the Original
         Closing Date and (3) any and all proceeds of any of the above, whether
         presently owned or hereinafter acquired and any future rights, benefits
         and claims arising therefrom (hereinafter clauses (1)-(3) collectively
         called the Assigned Subleases).

(c)      Upon the expiration of the Lease Term as to a Property, the Assigned
         Subleases in such Property shall automatically and without further
         action of the Lessor or the Lessee be reassigned to Lessor, in all
         cases free and clear of all Liens except Lessor Liens and Indenture
         Trustee Liens. Upon Lessor's request, Lessee shall execute an
         assignment of leases in form and substance reasonably satisfactory to
         Lessor confirming the foregoing.

(d)      The Lessee further acknowledges that the Lessor shall be further
         assigning the rights granted pursuant to this Section 16.2 to the
         Indenture Trustee under the Indenture.

(e)      Notwithstanding the assignment of rights and security interest granted
         in this Section 16.2, the Lessor agrees that, so long as no Lease Event
         of Default or Default under paragraph (e) of Article 18 is continuing,
         Lessee shall have the right to all rent, income and other sums becoming
         due and payable under the Assigned Subleases and the Lessor (and anyone
         claiming through the Lessor) shall not communicate or otherwise deal
         with (unless Lessee shall have given irrevocable notice of its right to
         terminate this Lease with respect to the applicable Property), or
         collect any rent from, any sublessee, or approach any sublessee for any
         acknowledgment of the assignment set forth in this Section 16.2 or
         receive any such acknowledgment.

(f)      Regardless of whether a Lease Event of Default or a Default under
         paragraph (e) of Article 18 is continuing, so long as the assignment
         made hereunder remains effective, the Lessor may exercise any
         inspection rights that the Lessee may have under a sublease.

16.3     Sublessor Improvements

         The Lessor agrees that for each Approved Sublease it shall reimburse
         the Lessee for the unamortized balance (computed without interest on a
         straight line basis over the basic term of such Approved Sublease,
         excluding renewals) of tenant improvement expenditures made by the
         Lessee in connection with such Approved Sublease; such balance to be
         calculated and reimbursed as of the date on which the Lessee surrenders
         possession to the Lessor of the Property which just before such
         surrender was subject to such Approved Sublease, whether such surrender
         occurs at the expiration or earlier termination of this Lease as it
         relates to such Property.

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17.      INSPECTION, REPORTS AND NOTICES

17.1     Inspection

         Upon five days' prior notice (three days' prior notice if the
         Properties subject to the inspection (or any portion thereof) are being
         terminated from this Lease) to the Lessee, or in the case of emergency
         or while a Lease Event of Default is continuing upon reasonable notice,
         the Indenture Trustee, the Pass Through Trustee and the Lessor and
         their authorized representatives (the Inspecting Parties) may inspect,
         at their own expense and risk, the Properties other than any areas
         where proprietary information of the Lessee or any sublessee is
         retained in the ordinary course of business, but only in a manner so as
         to not unreasonably interfere with the Lessee's or any other occupant's
         business operations on the Properties and, if required by the Lessee,
         only when accompanied by a designated representative of the Lessee. The
         Inspecting Parties shall have no right to inspect the books, records or
         financial information of the Lessee (other than the books, records or
         financial information relating directly and primarily to the
         Properties, but only after material related to matters other than the
         Properties shall have been redacted from such documents). None of the
         Inspecting Parties shall have any duty to make any such inspection or
         inquiry and none of the Inspecting Parties shall incur any liability or
         obligation by reason of not making any such inspection or inquiry. None
         of the Inspecting Parties shall incur any liability or obligation by
         reason of making any such inspection or inquiry except for such
         Inspecting Party's gross negligence or willful misconduct.

17.2     Reports

         To the extent permissible, the Lessee shall prepare and file in a
         timely fashion, or, where the Lessor shall be required to file, the
         Lessee shall prepare and deliver to the Lessor, as applicable, within a
         reasonable time prior to the date for filing, any reports with respect
         to the condition or operation of the Properties that shall be required
         to be filed with any Governmental Authority.

17.3     Notices from Governmental Authorities

         The Lessor shall promptly provide the Lessee with copies of any
         communications received by the Lessor from any Governmental Authority
         relating to the Properties.

18.      LEASE EVENTS OF DEFAULT

         The following events shall constitute Lease Events of Default (whether
         any such event shall be voluntary or involuntary or come about or be
         effected by operation of law or pursuant to or in compliance with any
         judgment, decree or order of any court or any order, rule or regulation
         of any administrative or governmental body):

         (a)   the Lessee shall fail to make any payment of Basic Rent,
               Redemption Premium (arising as the result of the prepayment of
               any Secured Note pursuant to clauses (b), (c), (d) or (f) of
               Section 2.04 of the Indenture) or Stipulated Loss Value and such
               failure shall continue for five days after the date such payment
               was due;

         (b)   the Lessee shall fail to make any payment of any other
               Supplemental Rent not specifically set forth in paragraph (a) of
               this Article 18 or any other amount payable hereunder and such
               failure shall continue for a period of 30 days after notice of
               such failure to Lessee from the Lessor or the Indenture Trustee;

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<PAGE>

         (c)   the Lessee shall fail to maintain insurance in the amounts
               required by Section 11.1 or 11.2 hereof; provided, however, that
               if such failure is the result of the Lessee not obtaining the
               insurance required immediately following its downgrading below
               the Rating Test, such failure shall not constitute a Lease Event
               of Default unless such failure shall continue for 20 days;

         (d)   the Lessee shall fail to timely perform or observe any covenant,
               condition or agreement (not included in paragraph (a), (b) or (c)
               of this Article 18) to be performed or observed by it hereunder
               or under any other Operative Document to which the Lessee is a
               party (other than the Tax Indemnification Agreement) and such
               failure shall continue for a period of 30 days after Lessee
               receives written notice thereof from the Lessor or the Indenture
               Trustee; provided that the continuation of such failure shall not
               constitute a Lease Event of Default if (i) such failure is not
               reasonably curable within 30 days; (ii) the Lessee is diligently
               pursuing the cure of such default; (iii) such failure does not
               impair in any material respect the Lessor's ownership interest in
               the Properties or impair the Lien of the Security Documents; and
               (iv) such cure is completed within 270 days of Lessee's receipt
               of written notice of the default or by the end of the Lease Term,
               if earlier;

         (e)   the filing by the Lessee of any petition for dissolution or
               liquidation, conservatorship or receivership of the Lessee, or
               the commencement by the Lessee of any case under any applicable
               bankruptcy, insolvency or other similar law now or hereafter in
               effect, or the Lessee shall have consented to the entry of an
               order for relief under any such law, or the failure of the Lessee
               generally to pay its debts as such debts become due, or the
               failure by the Lessee promptly to satisfy or discharge any
               execution, garnishment or attachment of such consequence as will
               impair its ability to carry out its obligations under this Lease,
               or the appointment of or taking possession by a receiver,
               custodian or trustee (or other similar official) for the Lessee
               or any substantial part of its property, or a general assignment
               by the Lessee for the benefit of its creditors, or the entry by
               the Lessee into an agreement of composition with its creditors,
               or the Lessee shall have taken any corporate action in
               furtherance of any of the foregoing; or the filing against the
               Lessee of a petition in bankruptcy, insolvency or other similar
               law which results in an order for relief being entered or,
               notwithstanding that an order for relief has not been entered,
               the petition is not dismissed within 90 days of the date of the
               filing of the petition, or the filing under any law relating to
               bankruptcy, insolvency or relief of debtors of any petition
               against the Lessee for reorganization, conservatorship or
               receivership, composition, extension or arrangement with
               creditors which either (i) results in a finding or adjudication
               of insolvency of the Lessee or (ii) is not dismissed within 90
               days of the date of the filing of such petition (the term
               dissolution or liquidation of the Lessee, as used in this
               paragraph (e), shall not be construed to include the cessation of
               the corporate existence of the Lessee resulting either from a
               merger or consolidation of the Lessee into or with another
               corporation or a dissolution or liquidation of the Lessee
               following a transfer of all or substantially all of its assets as
               an entirety, if the conditions permitting such actions contained
               in Section 5.1 of the Participation Agreement are satisfied); or

         (f)   any representation or warranty by the Lessee in any Operative
               Document to which the Lesee is a party (other than the Tax
               Indemnification Agreement) or in any certificate or document
               delivered to the Lessor or the Indenture Trustee pursuant to any
               Operative Document to which the Lessee is a party (other than the
               Tax Indemnification Agreement) shall have been materially
               incorrect when made and shall remain incorrect for 30 days

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<PAGE>

               after the Lessee's receipt of written notice thereof from the
               Lessor or the Indenture Trustee unless (i) such breach is curable
               and the Lessee is diligently attempting to cure such
               misrepresentation and (ii) such cure is completed within 270 days
               of receipt of such notice or the end of the Lease Term, if
               earlier;

19.      ENFORCEMENT

19.1     Remedies

         Upon the occurrence of any Lease Event of Default and at any time
         thereafter so long as the same shall be continuing, the Lessor may, at
         its option, by notice to the Lessee and the Indenture Trustee declare
         this Lease to be in default, and at any time thereafter so long as a
         Lease Event of Default is continuing the Lessor may exercise one or
         more of the following rights and remedies as the Lessor in its sole
         discretion shall determine:

         (a)   the Lessor may, by notice to the Lessee, terminate this Lease as
               to some or all of the Properties as of the date specified in such
               notice; however, (A) no reletting, reentry or taking of
               possession of the Properties by the Lessor will be construed as
               an election on the Lessor's part to terminate this Lease unless a
               written notice of such intention is given to the Lessee, (B)
               notwithstanding any reletting, reentry or taking of possession,
               the Lessor may at any time thereafter elect to terminate this
               Lease for a continuing Lease Event of Default, and (C) no act or
               thing done by the Lessor or any of its agents, representatives or
               employees and no agreement accepting a surrender of the
               Properties shall be valid unless the same be made in writing and
               executed by the Lessor;

         (b)   the Lessor may (i) demand that the Lessee, and the Lessee shall
               upon the demand of the Lessor, return the Properties promptly to
               the Lessor in the manner and condition required by, and otherwise
               in accordance with all of the provisions of, Articles 9 and 12
               hereof as if the Properties were being returned at the end of the
               Lease Term, and the Lessor shall not be liable for the
               reimbursement of the Lessee for any costs and expenses incurred
               by the Lessee in connection therewith and (ii) without prejudice
               to any other remedy which the Lessor may have for possession of
               the Properties, enter upon the Properties and take immediate
               possession of the Properties (to the exclusion of the Lessee) and
               expel or remove the Lessee and any other Person who may be
               occupying the Properties (except any sublessee under Senior
               Subleases subject to an applicable Subordination and
               Non-Disturbance Agreement), by summary proceedings or otherwise,
               all without liability to the Lessee for or by reason of such
               entry or taking of possession, whether for the restoration of
               damage to property caused by such taking or otherwise and, in
               addition to Lessor's other damages, the Lessee shall be
               responsible for the reasonably necessary costs and expenses of
               reletting, including brokers' fees, marketing costs, legal fees
               and the costs of any repairs made by Lessor. The provisions of
               this Section 19.1(b) shall operate as a notice to quit and shall
               be deemed to satisfy any other requirement or provisions of
               Applicable Laws and Regulations which may require the Lessor to
               provide a notice to quit or of the Lessor's intention to reenter
               the Properties and any such requirements or provisions are hereby
               waived by the Lessee;

         (c)   the Lessor may sell all or any part of the Properties at public
               or private sale, as the Lessor may determine, free and clear of
               any rights of the Lessee and without any duty to account to the
               Lessee with respect to such action or inaction or any proceeds
               with respect thereto (except to the extent required by paragraph
               (f) below if the Lessor shall elect to exercise

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<PAGE>

               its rights thereunder) in which event the Lessee's obligation to
               pay Basic Rent hereunder for periods commencing after the date of
               such sale shall be terminated or proportionately reduced, as the
               case may be (except to the extent that Basic Rent is to be
               included in computations under paragraph (e) or (f) below if the
               Lessor shall elect to exercise its rights thereunder);

         (d)   to the extent permitted by Applicable Laws and Regulations, the
               Lessor may hold, keep idle or lease to others all or any part of
               the Properties as the Lessor in its sole discretion may
               determine, free and clear of any rights of the Lessee and without
               any duty to account to the Lessee with respect to such action or
               inaction or for any proceeds with respect to such action or
               inaction, except that the Lessee's obligation to pay Basic Rent
               from and after the occurrence of a Lease Event of Default shall
               be reduced by the net proceeds, if any, received by the Lessor
               from leasing the Properties previously leased to the Lessee to
               any Person other than the Lessee for the same periods or any
               portion thereof;

         (e)   the Lessor may, whether or not the Lessor shall have exercised or
               shall thereafter at any time exercise any of its rights under
               paragraph (b), (c) or (d) of this Article 19 with respect to one
               or more Properties, demand, by written notice to the Lessee, and
               specify a Stipulated Loss Value Date (the Final Payment Date) not
               earlier than 25 days after the date of such notice, that the
               Lessee pays to the Lessor, on the Final Payment Date, as
               liquidated damages for loss of a bargain and not as a penalty
               (the parties agreeing that the Lessor's actual damages would be
               difficult to predict, but the aforementioned liquidated damages
               represent a reasonable approximation of such amount) (in lieu of
               Basic Rent due after the Final Payment Date), an amount equal to
               the sum of (A) all Supplemental Rent then due and owing plus all
               accrued Basic Rent unpaid as of the Final Payment Date other
               than, in the case where the Lessee pays all or any portion of
               Stipulated Loss Value to the Lessor pursuant to clauses (i), (ii)
               or (iii) below, the Basic Rent installment due and payable in
               advance on such Stipulated Loss Value Date, plus (B) whichever of
               the following amounts the Lessor, in its sole discretion, shall
               specify in such notice (together with interest on such amount at
               the Overdue Rate from the Final Payment Date specified in such
               notice to the date of actual payment):

               (i)     if a Property has not been sold, an amount equal to the
                       excess, if any, of the Stipulated Loss Value of such
                       Property, computed as of the Final Payment Date, over the
                       Fair Market Sales Value of such Property as of the Final
                       Payment Date (such Fair Market Sales Value to be
                       determined by mutual agreement of the Lessor and the
                       Lessee or if they cannot agree within 10 days after such
                       notice by the Appraisal Procedure);

               (ii)    an amount equal to the excess, if any, of the Stipulated
                       Loss Value of a Property computed as of the Final Payment
                       Date over the present value of the Fair Market Rental
                       Value of such Property for the balance of the useful life
                       of such Property discounted at the Interest Rate (as
                       adjusted for monthly compounding) (such Fair Market
                       Rental Value to be determined by mutual agreement of the
                       Lessor and the Lessee or if they cannot agree within 10
                       days of such notice by the Appraisal Procedure); or

               (iii)   the Stipulated Loss Value of a Property computed as of
                       the Final Payment Date and upon payment of such amount,
                       and the amount of any unpaid Rent referred to in Section
                       19.2, the Lessor shall convey to the Lessee all of the
                       Lessor's right,

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<PAGE>

                       title and interest in and to such Property without
                       recourse or warranty, but free and clear of Lessor's
                       Liens;

         (f)   if the Lessor shall have sold a Property pursuant to paragraph
               (c) above, the Lessor, in lieu of exercising its rights under
               paragraph (e) above, may, if it shall so elect, demand that the
               Lessee pay to the Lessor, and the Lessee shall pay to the Lessor,
               on the date of such sale, as liquidated damages for loss of a
               bargain and not as a penalty (the parties agreeing that the
               Lessor's actual damages would be difficult to predict, but the
               aforementioned liquidated damages represent a reasonable
               approximation of such amount) (in lieu of Basic Rent due for
               periods commencing on or after the Stipulated Loss Value Date
               coinciding with such date of sale (or, if the sale date is not a
               Stipulated Loss Value Date, the Stipulated Loss Value Date next
               preceding the date of such sale)), an amount equal to the sum of
               (1) all accrued and unpaid Basic Rent as of such Stipulated Loss
               Value Date other than, in the case where the Lessee pays all or
               any portion of Stipulated Loss Value on such Stipulated Loss
               Value Date, the Basic Rent installment due and payable in advance
               on such Stipulated Loss Value Date, plus (2) the amount of any
               excess of the Stipulated Loss Value of such Property, computed as
               of such Stipulated Loss Value Date, over the net proceeds of such
               sale, together with interest at the Interest Rate on such excess
               from such Stipulated Loss Value Date to the date of sale, plus
               (3) all Supplemental Rent then due and owing under this Lease,
               plus (4) interest at the Overdue Rate on all of the foregoing
               amounts from the date of such sale until the date of payment;

         (g)   the Lessor may exercise any other right or remedy that may be
               available to it under Applicable Laws and Regulations or in
               equity, or proceed by appropriate court action (legal or
               equitable) to enforce the terms hereof or to recover damages for
               the breach hereof. Separate suits may be brought to collect any
               such damages for any period of this Lease, and such suits shall
               not in any manner prejudice the Lessor's right to collect any
               such damages for any subsequent period of this Lease, or the
               Lessor may defer any such suit until after the expiration of the
               Basic Term or the then current Renewal Term, in which event such
               suit shall be deemed not to have accrued until the expiration of
               the Basic Term, or the then current Renewal Term; or

         (h)   the Lessor may retain and apply against the Lessor's damages, all
               sums which the Lessor would, absent such Lease Event of Default,
               be required to pay to, or turn over to, the Lessee pursuant to
               the terms of this Lease, including, without limitation, any sums
               which the Lessor may be required to pay to the Lessee under
               Section 14.5.

19.2     Survival of the Lessee's Obligations

         No termination of this Lease, in whole or in part, or repossession of
         any of the Properties or exercise of any remedy under Section 19.1
         shall, except as specifically provided therein, relieve the Lessee of
         any of its liabilities and obligations hereunder. In addition, except
         as specifically provided therein, the Lessee shall be liable, except as
         otherwise provided above, for any and all unpaid Rent due hereunder
         before, after or during the exercise of any of the foregoing remedies,
         including all reasonable legal fees and other costs and expenses
         incurred by the Lessor, the Pass Through Trustee and the Indenture
         Trustee by reason of the occurrence of any Lease Event of Default or
         the exercise of the Lessor's remedies with respect thereto, and
         including all costs and expenses incurred in connection with the return
         of the Properties in the manner and condition required by, and
         otherwise in accordance with the provisions of, Articles 9 and 12
         hereof as if such Properties were being returned at the end of the
         Lease Term. At any sale of the Properties or

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<PAGE>

         any part thereof or any other rights pursuant to Section 19.1, the
         Lessor or the Indenture Trustee may bid for and purchase such
         Properties.

19.3     Remedies Cumulative; No Waiver; Consents

         To the extent permitted by, and subject to the mandatory requirements
         of, Applicable Laws and Regulations, each and every right, power and
         remedy herein specifically given to the Lessor or otherwise in this
         Lease shall be cumulative and shall be in addition to every other
         right, power and remedy herein specifically given or now or hereafter
         existing at law, in equity or by statute, and each and every right,
         power and remedy whether specifically herein given or otherwise
         existing may be exercised from time to time and as often and in such
         order as may be deemed expedient by the Lessor, and the exercise or the
         beginning of the exercise of any power or remedy shall not be construed
         to be a waiver of the right to exercise at the same time or thereafter
         any right, power or remedy. No delay or omission by the Lessor in the
         exercise of any right, power or remedy or in the pursuit of any remedy
         shall impair any such right, power or remedy or be construed to be a
         waiver of any default on the part of the Lessee or to be an
         acquiescence therein. The Lessor's consent to any request made by the
         Lessee shall not be deemed to constitute or preclude the necessity for
         obtaining the Lessor's consent, in the future, to all similar requests.
         No express or implied waiver by the Lessor of any Lease Event of
         Default shall in any way be, or be construed to be, a waiver of any
         future or subsequent Lease Event of Default.

20.      RIGHT TO PERFORM FOR THE LESSEE

         If the Lessee shall fail to perform or comply with any of its
         agreements contained herein or in any other Operative Document to which
         the Lessee is a party, the Lessor may, on five Business Days' (one
         Business Day's in the case of an emergency) prior notice to the Lessee,
         but only if the Lessee is not diligently attempting to cure such
         failure, perform or comply with such agreement, and the Lessor shall
         not thereby be deemed to have waived any default caused by such
         failure, and the amount of such payment and the amount of the expenses
         of the Lessor (including reasonable attorney's fees and expenses)
         incurred in connection with such payment or the performance of or
         compliance with such agreement, as the case may be, together with
         interest thereon at the Overdue Rate, shall be deemed Supplemental
         Rent, payable by the Lessee to the Lessor upon demand. The provisions
         set forth in the preceding sentence shall not be construed as extending
         or modifying the cure periods otherwise provided under Article 18 with
         respect to Lease Events of Default.

21.      MISCELLANEOUS

21.1     Binding Effect; Successors and Assigns; Survival

         The terms and provisions of this Lease, and the respective rights and
         obligations hereunder of the Lessor and the Lessee, shall be binding
         upon their respective successors, legal representatives and assigns,
         and inure to the benefit of their respective permitted successors and
         assigns, and the express rights hereunder of the Indenture Trustee and
         the Pass Through Trustee shall inure (subject to such conditions as are
         contained herein) to the benefit of their respective permitted
         successors and assigns. The obligations of the Lessee (a) under Section
         3.2 and (b) with respect to any Property or Properties terminated from
         this Lease, where such obligations referenced in clause (a) or (b) were
         accrued prior to the effectiveness of such termination, shall survive
         the termination of this Lease.

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21.2     Quiet Enjoyment

         The Lessor covenants that it will not interfere in the Lessee's, and
         any permitted sublessee's, respective peaceful and quiet enjoyment of
         the Properties hereunder during the Lease Term, so long as no Lease
         Event of Default has occurred and is continuing, but subject in all
         cases to Section 16.1; provided that the Lessor shall have no
         responsibility for the actions of the Indenture Trustee, the Pass
         Through Trustee or any Person claiming by, through or under either
         thereof or for any defects in or exceptions to title to the Properties
         other than those which are attributable to Lessor's Liens.

21.3     Notices

         Unless otherwise specifically provided herein, all notices, consents,
         demands, directions, approvals, instructions, requests and other
         communications required or permitted by the terms hereof to be given to
         any Person shall be given as provided in Section 12.3 of the
         Participation Agreement.

21.4     Severability

         Any provision of this Lease that shall be prohibited or unenforceable
         in any jurisdiction shall, as to such jurisdiction, be ineffective to
         the extent of such prohibition or unenforceability without invalidating
         the remaining provisions hereof and any such prohibition or
         unenforceability in any jurisdiction shall not invalidate or render
         unenforceable such provision in any other jurisdiction, and the Lessee
         shall remain liable to perform its obligations hereunder except to the
         extent of such unenforceability. To the extent permitted by Applicable
         Laws and Regulations, the Lessee hereby waives any provision of law
         that renders any provision hereof prohibited or unenforceable in any
         respect.

21.5     Amendment; Complete Agreements

         Neither this Lease nor any of the terms hereof may be terminated,
         amended, supplemented, waived or modified orally, but only by an
         instrument in writing signed by the party against which the enforcement
         of the termination, amendment, supplement, waiver or modification shall
         be sought. This Lease, together with the other Operative Documents, is
         intended by the parties as a final expression of their lease agreement
         and as a complete and exclusive statement of the terms thereof, all
         negotiations, considerations and representations between the parties
         having been incorporated herein and therein. No course of prior
         dealings between the parties or their officers, employees, agents or
         Affiliates shall be relevant or admissible to supplement, explain, or
         vary any of the terms of this Lease or any other Operative Document.
         Acceptance of, or acquiescence in, a course of performance rendered
         under this or any prior agreement between the parties or their
         Affiliates shall not be relevant or admissible to determine the meaning
         of any of the terms of this Lease or any other Operative Document. No
         representations, undertakings, or agreements have been made or relied
         upon in the making of this Lease other than those specifically set
         forth in the Operative Documents.

21.6     Headings

         The Table of Contents and headings of the various Articles and Sections
         of this Lease are for convenience of reference only and shall not
         modify, define or limit any of the terms or provisions hereof.

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21.7     Counterparts

         This Lease may be executed by the parties hereto in separate
         counterparts, each of which when so executed and delivered shall be an
         original, but all such counterparts shall together constitute but one
         and the same instrument.

21.8     Governing Law

         This Lease shall in all respects be governed by, and construed in
         accordance with, the laws of the State of New York applicable to
         agreements made and to be performed entirely within such State,
         including all matters of construction, validity and performance, except
         laws governing conflicts of law, provided that to the extent the law of
         the jurisdiction where a Property is located requires that the laws of
         such jurisdiction apply to any aspect of this Lease, then to that
         extent such laws of such jurisdiction will so apply to such Property.

21.9     Apportionments

         Upon any termination of this Lease as to a Property, (a) there shall be
         apportioned, as of the date of such termination all items of income and
         expense, including but not limited to, all rents (including water or
         sewer rents), real estate taxes, assessments, insurance or other
         charges payable with respect to such Property; (b) the Lessee shall
         transfer to Lessor all security deposits (whether cash or other form of
         security) from any sublessee under Assigned Subleases, including Senior
         Subleases, (c) all contracts pertaining to the operation of such
         Property shall, at Lessor's option as to each such contract if it is
         assignable, be assigned to Lessor and assumed by Lessor or its
         designee, (d) Lessee shall undertake such other actions as are
         necessary or appropriate in connection with the termination of this
         Lease and the transfer of possession of the Property to Lessor, (e) the
         Lessee shall deliver to Lessor or its designee at least one complete
         set of as-built plans for the Improvements in Lessee's or its managing
         agent's possession and (f) the Lessee shall deliver to Lessor copies or
         originals of all books and records in Lessee's or its managing agent's
         possession pertaining to the operation of the Property.

21.10    Discharge of the Lessee's Obligations by its Sublessees

         The Lessor agrees that performance by any sublessee of the Lessee's
         obligations hereunder shall constitute performance by the Lessee of
         such obligations to the same extent and with the same effect hereunder
         as if such obligations were performed by the Lessee.

21.11    Nature of Lessor's Obligations

         The Lessee agrees that the officers and directors of the Lessor shall
         not be personally liable for the obligations of the Lessor hereunder.

21.12    Estoppel Certificates

         Each party hereto agrees that at any time and from time to time during
         the Lease Term, it will promptly, but in no event later than thirty
         (30) days after request by the other party hereto, execute, acknowledge
         and deliver to such other party or to any prospective purchaser (if
         such prospective purchaser has signed a purchase agreement, commitment
         or letter of intent to purchase the Properties or any part thereof),
         assignee or mortgagee or third party designated by such other party, a
         certificate stating (a) that this Lease is unmodified and in full force
         and effect

                                       45

<PAGE>

         (or if there have been modifications, that this Lease is in full force
         and effect as modified, and identifying the modification agreements);
         (b) the date to which Basic Rent has been paid; (c) whether or not
         there is any existing default by the Lessee in the payment of Basic
         Rent or any other sum of money hereunder, and whether or not, to the
         knowledge of the signer, there is any other existing default by either
         party with respect to which a notice of default has been served, and,
         if there is any such default, specifying the nature and extent thereof;
         (d) whether or not, to the knowledge of the signer, there are any
         setoffs, defenses or counterclaims against enforcement of the
         obligations to be performed hereunder existing in favor of the party
         executing such certificate and (e) other items that may be reasonably
         requested; provided that no such certificate may be requested unless
         the requesting party has a good faith reason for such request.

21.13    Granting of Easements

         If no Lease Event of Default has occurred and is continuing, the Lessor
         will join with the Lessee from time to time at the request of the
         Lessee (at the Lessee's sole cost and expense) to (a) subject to the
         terms of Sections 14.3 and 14.6, sell, assign, convey or otherwise
         transfer an interest in the Properties to any Person legally empowered
         to take such interest under the power of eminent domain, (b) grant
         easements, licenses, rights of way and other rights and privileges in
         the nature of easements, (c) release existing easements and
         appurtenances affecting the Properties, (d) subject to the terms of
         Sections 14.3 and 14.6, dedicate or transfer unimproved portions of the
         Properties for road, highway or other public purposes, (e) execute
         petitions to have the Properties annexed to any municipal corporation
         or utility district, (f) execute amendments to any covenants and
         restrictions affecting the Properties and (g) execute and deliver any
         instrument, in form and substance reasonably acceptable to the Lessor,
         necessary or appropriate to make or confirm such grants or releases to
         any Person, with or without consideration, but in all cases only if (1)
         the Lessor and the Indenture Trustee shall have received, together with
         the request from the Lessee to make such grant or release, (x) an
         Officer's Certificate of the Lessee stating that such grant or release
         does not interfere with the continued use of the Properties pursuant to
         this Lease and does not reduce the Fair Market Sales Value of the
         Properties except to a de minimis extent, and (y) an Officer's
         Certificate of the Lessee stating the consideration, if any, and that
         such consideration being paid for said sale, grant, easement, license,
         release, right of way, petition, amendment or other such instruments
         described in this paragraph, is in the opinion of the Lessee fair and
         adequate (such consideration, to the extent in the form of cash and/or
         tangible property, to be shared by the Lessor and the Lessee in
         proportion to their respective interests in the affected Properties)
         and (z) a duly authorized and binding undertaking of the Lessee, in
         form and substance reasonably satisfactory to the Lessor, to remain
         obligated under this Lease as though such easement, license,
         right-of-way or other right or privilege has not been granted or
         released, and to perform all obligations of the Lessor, grantor or
         party effecting the release or granting such easement or other interest
         under such instrument of grant or release during the Lease Term and (2)
         the statements in the certificates described in the preceding clauses
         (x) and (y) are accurate. Notwithstanding the foregoing, the Lessor
         shall not be required to grant to any Person an easement allowing
         access to and/or through any portion of the Properties the term of
         which exceeds the Lease Term; provided that this sentence shall not be
         construed to limit the rights of the Lessee to remove Severable
         Improvements and Alterations within a reasonable time beyond the Lease
         Term as provided in Article 12.

                                       46

<PAGE>

21.14    No Joint Venture

         Any intention to create a joint venture or partnership relation between
         the Lessor and the Lessee, is hereby expressly disclaimed.

21.15    No Accord and Satisfaction

         The acceptance by the Lessor of any sums from the Lessee (whether as
         Basic Rent or otherwise) in amounts which are less than the amounts due
         and payable by the Lessee hereunder is not intended, nor shall be
         construed, to constitute an accord and satisfaction of any dispute
         between the Lessor and the Lessee regarding sums due and payable by the
         Lessee hereunder, unless the Lessor specifically deems it as such in
         writing.

21.16    No Merger

         In no event shall the leasehold interest, estate or right of the Lessee
         hereunder, or of the Holder of any Notes secured by a security interest
         in this Lease, merge with any interests, estates or rights of the
         Lessor in or to the Properties, it being understood that such lease
         hold interest, estate and right of the Lessee hereunder, and of the
         Holder of any Notes secured by a security interest in this Lease, shall
         each be deemed to be separate and distinct from the Lessor's interests,
         estates and rights in or to the Properties, notwithstanding that any
         such interests, estates or rights shall at any time or times be held by
         or vested in the same Person; provided, however, that if all of such
         interests, estates or rights at any time shall be held by or vested in
         one Person, such Person may at its option effect a merger of such
         interests by written instrument clearly and specifically evidencing
         such intention.

21.17    Investment of Funds

         Any moneys held by the Lessor or the Indenture Trustee as security
         hereunder (to the extent not applied against the Lessee's obligations
         under the Operative Documents to which the Lessee is a party) at a time
         when a Lease Event of Default or Special Default exists shall, until
         paid to the Lessee or so applied, be invested by the Lessor in
         Permitted Investments, at the Lessee's risk and expense. All such
         amounts, including any gain (including interest received) realized as a
         result of any such investment (net of any fees, Taxes, commissions and
         other expenses, if any, incurred in connection with such investment)
         shall be reinvested, applied or paid over to the Lessee, at its
         direction, upon the Lessee's cure of its Lease Event of Default or
         Special Default.

21.18    True Lease

         This Lease is intended as, and shall constitute, an agreement of lease,
         and nothing herein shall be construed as conveying to the Lessee any
         right, title or interest in or to the Properties, except as a lessee.

                                       47

<PAGE>

IN WITNESS WHEREOF, the undersigned have each caused this Lease Agreement to be
duly executed and delivered and their corporate seals to be hereunto affixed and
attested by their respective officers thereunto duly authorized as of the day
and year first above written.

SIGNED, SEALED AND                          FIRST STATES INVESTORS 3500, LLC, as
DELIVERED IN THE PRESENCE OF:               Lessor

___________________________________         By:_________________________________
Name:                                       Name:  Edward J. Matey, Jr.
                                            Title: Vice President

                                            BANK OF AMERICA, N.A.
                                            as Lessee

___________________________________
Name:

                                            By:_________________________________
                                            Name:  Michael F. Hord
                                            Title: Associate General Counsel

                                       48

<PAGE>

*    Receipt of this original Counterpart No. 1 of the foregoing Lease Agreement
     is hereby acknowledged on ____ day of May, 2003.

                                             WELLS FARGO BANK NORTHWEST,
                                             NATIONAL ASSOCIATION
                                             as Indenture Trustee

                                             By:________________________________
                                             Name:
                                             Title:

*    This language contained in
     original Counterpart No. 1 only

                                       49

<PAGE>

                                    EXHIBIT A

                                FORM OF FMV LEASE

            [Form to be agreed to between the Lessor and the Lessee]

                                       50

<PAGE>

                                    EXHIBIT B

                                FORM OF SUBLEASE

                                       51

<PAGE>

                                    EXHIBIT C

                            FORM OF BANK BRANCH LEASE

                                       52

<PAGE>

                                    EXHIBIT D

                   FORM OF SUBORDINATION, NON-DISTURBANCE AND
                              ATTORNMENT AGREEMENT

                                       53

<PAGE>

                                    EXHIBIT E

                              FORM OF AFR SUBLEASE

            [Form to be agreed to between the Lessor and the Lessee]

                                       54

<PAGE>

                                    EXHIBIT F

                         FORM OF PARTIAL OCCUPANCY LEASE

            [Form to be agreed to between the Lessor and the Lessee]

                                       55

<PAGE>

                                   SCHEDULE 1

                                    [TO COME]

                                       56

<PAGE>

                                   SCHEDULE 2

                                                          Assumed
         Property                                    Termination Date

         Baltimore, MD - Calvert St.                   June 10, 2004

         Arlington, VA                                 June 10, 2004

         Columbia, SC                                  June 10, 2004

         Silver Spring, MD                             June 10, 2004

         College Park (Southside), GA                  June 10, 2004

         Washington, DC                                June 10, 2004

         St. Petersburg, FL                            June 10, 2004

         Tucker (Northeast), GA                        June 10, 2009

         Greensboro, NC                                June 10, 2009

         Baltimore, MD - Charles St.                   June 10, 2015

         Richmond, VA - Villa Park                     June 10, 2022

         Norfolk, VA - Two Commercial                  June 10, 2022

         Richmond, VA - Bank of America Center         June 10, 2022

         Norfolk, VA - Bank of America Center          June 10, 2022

                                       57

<PAGE>

                                   SCHEDULE 3
I.  Address:    Washington Office
                730 15th Street
                Washington, DC

    Land Description:    See Attached Appendix IA.

    List of Personal Property Subject to Lease (if any): See Attached Appendix
    IB.

    Lessor's Cost: $15,590,499.

    Square Feet: 110,841

                                       58

<PAGE>

II.  Address:  St. Petersburg Operations Center
               830 Central Avenue
               St. Petersburg, FL

     Land Description:  See Attached Appendix IIA.

     List of Personal Property Subject to Lease (if any): See Attached Appendix
     IIB.

     Lessor's Cost: $4,296,770.

     Square Feet: 83,108

                                       59

<PAGE>

 IV.  Address:    Southside Center
                  6000 Feldwood Road
                  College Park, GA

      Land Description:    See Attached Appendix IVA.

      List of Personal Property Subject to Lease (if any): See Attached Appendix
      IVB.

      Lessor's Cost: $14,798,688.

      Square Feet:  233,644

                                       60

<PAGE>

V.    Address:     Northeast Center
                   2059 Northlake Parkway
                   Tucker, GA

      Land Description:    See Attached Appendix VA.

      List of Personal Property Subject to Lease (if any): See Attached Appendix
      VB.

      Lessor's Cost: $21,593,123.

      Square Feet: 248,024

                                       61

<PAGE>

VI. Address:    Calvert Center
                225 North Calvert Street
                Baltimore, MD

    Land Description:    See Attached Appendix VIA.

    List of Personal Property Subject to Lease (if any): See Attached Appendix
    VIB.

    Lessor's Cost: $10,396,422.

    Square Feet: 381,422

                                       62

<PAGE>

VII. Address: Charles Street
              100 South Charles Street
              Baltimore, MD

     Land Description: See Attached Appendix VIIA.

     List of Personal Property Subject to Lease (if any): See Attached Appendix
     VIIB.

     Lessor's Cost: $45,788,074.

     Square Feet: 473,324

                                       63

<PAGE>

VIII.  Address:    Viers Mill
                   12125 Viers Mill Road
                   Silver Spring, MD

       Land Description:    See Attached Appendix VIIIA.

       List of Personal Property Subject to Lease (if any): See Attached
       Appendix VIIIB.

       Lessor's Cost:  $1,598,688.

       Square Feet: 27,557

                                       64

<PAGE>

IX.  Address:    Triad Center
                 4161 Piedmont Avenue
                 Greensboro, NC

Land Description:     See Attached Appendix IXA.

List of Personal Property Subject to Lease (if any): See Attached Appendix IXB.

Lessor's Cost: $28,496,363.

Square Feet: 359,652

                                       65

<PAGE>

X. Address: Columbia Control Center
            295 Greystone Boulevard
            Columbia, SC

   Land Description:   See Attached Appendix XA.

   List of Personal Property Subject to Lease (if any):   See Attached Appendix
   XB.

   Lessor's Cost:  $6,198,807.

   Square Feet: 71,962

                                       66

<PAGE>

XI.  Address: Arlington Main
              3401 Columbia Pike
              Arlington, VA

     Land Description:  See Attached Appendix XIA.

     List of Personal Property Subject to Lease (if any):  See Attached Appendix
     XIB.

     Lessor's Cost: $1,598,589.

     Square Feet: 25,624

                                       67

<PAGE>

XII. Address:     Building                     Garage

                  Bank of America Center       Parking Garage
                  One Commercial Place         One Commercial Place
                  Norfolk, VA                  Norfolk, VA

     Land Description:  See Attached Appendix XIIA.

     List of Personal Property Subject to Lease (if any):  See Attached Appendix
     XIIB.

     Lessor's Cost: $21,289,525.

     Square Feet: 339,904

                                       68

<PAGE>

XIII. Address: Building                             Garage

               Bank of America Center Richmond      Shockoe Parking Garage
               1111 East Main Street                12/th/ and Canal Street
               Richmond, VA                         Richmond, VA

      Land Description:  See Attached Appendix XIIIA.

      List of Personal Property Subject to Lease (if any): See Attached Appendix
      XIIIB.

      Lessor's Cost: $50,592,725.

      Square Feet: 540,765

                                       69

<PAGE>

XIV. Address: Two Commercial Place
              Two Commercial Place
              Norfolk, VA

     Land Description:  See Attached Appendix XIVA.

     List of Personal Property Subject to Lease (if any): See Attached Appendix
     XIVB.

     Lessor's Cost: $19,692,844.

     Square Feet: 290,596

                                       70

<PAGE>

XV. Address: Villa Park
             8011 Villa Park
             Richmond, VA

    Land Description:   See Attached Appendix XVA.

    List of Personal Property Subject to Lease (if any):   See Attached Appendix
    XVB.

    Lessor's Cost: $68,095,628.

    Square Feet: 83,108

                                       71

<PAGE>

                                   SCHEDULE 4

                                    [TO COME]

                                       72

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