Document:

<PAGE>

                                                                   EXHIBIT 10.3

PAYMENT Agreement entered into as of the October 31, 2001 between National
Online SERVICES, INC. ("NOL) and Trans Voice INVESTMENTS, Inc. ("Trans Voice").

                                  INTRODUCTION

         Trans Voice had provided services and introduction to service providers
to enable NOL to commence business including an introduction to a call center.
Prior to such introduction and in consideration of such introduction and
services NOL had promised Trans Voice a fee of $4.00 per month for each customer
(not including any trial customer). No amounts have been paid but the parties
believe, based upon projections, that such obligation would have a substantial
negative effective upon NOL's ability to operate. Therefore, the parties desire
to modify the agreement to provide for a fixed payment of $150,000 per month or
$1,800,000 annually compared to a total annual fee of $4,800,000 for a potential
of 100,000 customers per month, which is projected. NOL agrees to pay Trans
Voice an additional $1.00 per month if the number of customers is in excess of
100,000. In addition, NOL shall provide Trans Voice and its executive with
office space.

                                    AGREEMENT

         1. As used herein the following terms shall have the meanings set forth
below:

                  "Program" shall refer to any Internet provider or web creation
or other internet service provided to any customer of NOL or Global Asset
Holdings, Inc. ("Global") and any of their direct or indirect subsidiaries or
affiliates ("Related Parties").

                  "Monthly Customer" shall refer to any customer of any program
paying a fee or other change for services. It shall not include any customer
during any trial period.

                  "Payment Date" shall refer to the first day of each month
commencing October 1, 2001.

                  "Subsidiary" shall include entity which NOL or Global controls
directly or indirectly.

         2. (a) NOL agrees to pay to Trans Voice and Trans Voice agrees to
accept as payment for all services and introductions provided by it to NOL the
following:

                           (i) $150,000 each month;

                           (ii) one dollar for every paying customer of NOL in
excess of 100,000 customers in any month in which the number of customers exceed
100,000.

<PAGE>

            (b) On the Payment Date NOL shall pay Trans Voice (i) the amounts
set forth in paragraph 2(a) and (ii) amounts required by paragraph 2(b) for the
month ending twenty eight (28) or more days prior to the Payment Date. Payment
shall be accompanied by written verification of the number of customers signed
by the Company's Chief Financial Officer.

         3. During the term of this Agreement NOL or Global shall provide two
executive sized offices to Trans Voice executives together with customary office
services.

         4. Trans Voice accepts payment and office space and services hereunder
in lieu of all other payment terms or obligations for finder's fees or fees for
services it may be entitled to.

         5. (a) NOL shall keep and maintain in the regular course of its
business, in accordance with generally accepted accounting principles, complete
and accurate books and records covering all transactions relating to the
Program.

            (b) Trans Voice agrees and acknowledges that all books, records,
correspondence, customer lists and data of NOL pertaining to transactions
relating to the customer are the exclusive property of NOL and customer lists
compiled by NOL for the Products constitute trade secrets and are the exclusive
property of NOL and that at no time, shall Trans Voice transfer utilize said
customer lists for any purpose except to verify and confirm the amount of
payments due hereunder of any other rights hereunder.

            (c) Trans Voice subject to the provisions of paragraph 5(b) hereof,
shall have the right during the term of this Agreement and for three (3) years
thereafter, at its cost and expense and during regular business hours, to
inspect and copy and make extracts from said books and records and to designate
an authorized representative, including without limitation, a firm of certified
public accountants to audit NOL books and records and to conduct such further
investigation as Transferee shall deem necessary to verify NOL's performance of
all of its obligations hereunder including, without limitation, additional
payments.

            (d) If, as a result of any examination of NOL's books and records,
it appears that NOL's payments were less than the amount which should have been
paid, NOL shall promptly pay the amount of discrepancy or shortage, which shall
bear interest from the date such royalty payments were due at two (2%) percent
higher than the prime rate Citibank to its most creditworthy corporate borrowers
as of such due date, and if the amount of such discrepancy or shortage shall be
an amount equal to at least one (1%) percent of the amount payable during the
period in question, NOL shall also reimburse Trans Voice for the cost of such
examination.

            (e) Trans Voice's rights against NOL shall also be enforceable
against each Related Party receiving revenue for any Program upon failure of NOL
or Global to perform any provision herein.

                                       2

<PAGE>

         6. Term. This Agreement shall continue while NOL or any Related Party
is receiving revenues from a Program. The period in which the Agreement is in
effect shall be the "Term". All payment and record preservation obligations
hereunder shall survive termination.

         7. Notices. All notices, demands, requests, consents, approvals or
other communications (each of the foregoing, a "Notice") required or permitted
to be given hereunder or pursuant hereto or that are given with respect to this
Agreement to either/any party hereto shall be in writing and shall be (a)
personally delivered, (b) sent by both registered or certified mail, postage
prepaid and return receipt requested, and regular first class mail, (b) sent
both by facsimile transmission with receipt of transmission confirmed
electronically or by telephone and by regular first class mail, (c) sent by
telegram or telex or (d) sent by reputable overnight courier service with
charges prepaid and delivery confirmed, to the intended recipient at its
respective address as set forth below or such other address given by notice
hereby:

         if to Trans Voice:

         Mr. Martin Miller
         38 Pembroke Drive
         Glen Cove, New York 11542
         Fax No. (516) 759-3069

         if to NOL:

         Mr. Irving Greenman
         11900 Biscayne Boulevard
         Suite 262
         Miami, Florida 33181
         Fax No. (305) 503-8610

Any Notice delivered or sent as provided above shall be deemed given when so
delivered or sent and shall be deemed received (a) when personally delivered,
(b) three (3) Business Days (as hereinafter defined) after being mailed as above
provided, (c) when sent by facsimile transmission as above provided, (d) when
sent by telex or telegram as above provided or (e) one (1) Business Day after
being sent by courier as above.

         8. Entire Agreement. This Agreement is intended by the parties as a
final expression of their agreement and is intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein, constitutes the entire agreement
of the parties with respect to the subject matter hereof and supersedes, and
merges herein, all prior and contemporaneous negotiations, discussions,
representations, understandings and agreements between the parties, whether oral
or written, with respect such subject matter. No representation, warranty,
restriction, promise, undertaking or other agreement with respect to such
subject matter has been made or given by any party hereto other than those set
forth in this Agreement.

                                       3

<PAGE>

         9. Amendment and Waiver. This Agreement may be amended, modified or
supplemented only to the extent expressly set forth in writing that is signed by
the party to be charged therewith and that sets forth therein that its purpose
is to amend, modify or supplement this Agreement or some term, condition or
provision hereof. No waiver of any term, condition or provision of this
Agreement or of any breach or violation of this Agreement or any provision
hereof shall be effective except to the extent expressly set forth in writing
that is signed by the party to be charged therewith.

         10. Assignment; No Third Party Beneficiaries. NOL may not assign this
Agreement and the rights, duties and obligations hereunder without the prior
written consent of Trans Voice. Trans Voice may assign or delegate its rights
hereunder. Except as provided in the immediately preceding sentence, any
purported assignment or delegation of rights, duties or obligations hereunder
made by NOL without the prior written consent of Trans Voice shall be null and
void and of no effect. This Agreement and the provisions hereof shall be binding
upon and enforceable against each of the parties hereto and its respective
estate, heirs, executors, administrators, legal representatives, successors and
assigns and shall inure to the benefit of and be enforceable by each of the
parties and its respective estate, heirs, executors, administrators, legal
representatives, successors and permitted assigns. Except as expressly provided
for in this Agreement, this Agreement is not intended to confer any rights or
benefits on any Persons other than the parties hereto and their respective
estate, heirs, executors, administrators, legal representatives, successors and
permitted assigns.

         11. Severability. It is the parties' intent that this Agreement and
 each term and provision hereof be enforceable in accordance with its terms and
 to the fullest extent permitted by law. Accordingly, to the extent any term or
 provision of this Agreement shall be determined or deemed to be valid or
 unenforceable, such provision shall be deemed amended or modified to the
 minimum extent necessary to make such provision, as so amended or modified,
 valid and enforceable.

         12. Titles and Headings; Rules of Interpretation. Titles, captions and
headings of the sections, articles and other subdivisions of this Agreement are
for convenience of reference only and shall not affect the construction or
interpretation of any provision of this Agreement. References to Sections and
Articles refer to sections and articles of this Agreement unless otherwise
stated. Words such as "herein," "hereinafter," "hereof," "hereto," "hereby" and
"hereunder," and words of like import, unless the context requires otherwise,
refer to this Agreement [(including the exhibits and other attachments hereto)]
taken as a whole and not to any particular Section, Article or other provision
hereof. As used in this Agreement, the masculine, feminine and neuter genders
shall be deemed to include the others if the context requires, and if the
context requires, the use of the singular shall include the plural and visa
versa.

                                       4

<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this payment
agreement as of October 31, 2001.

                                    NATIONAL ONLINE SERVICES, INC.

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

                                    TRANS VOICE INVESTMENTS, INC.

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

         Global Asset Holdings, Inc., as sole stockholder of NOL, agrees to
cause any Related Party to comply with the terms of this Agreement including but
not limited to terms of paragraphs 2, 3 and 5.

                                    GLOBAL ASSET HOLDINGS, INC

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

                                       5<PAGE>
                                                                   EXHIBIT 10.17

                     AMENDMENT NUMBER FOUR TO LOAN AGREEMENT

       THIS AMENDMENT NUMBER FOUR TO LOAN AGREEMENT (this "Amendment"), dated as
of January 29, 2002, is entered into by and among PHILIP SERVICES CORPORATION, a
Delaware corporation ("Parent"), each of Parent's Subsidiaries identified on the
signature pages hereof (such Subsidiaries, together with Parent, each a
"Borrower" and collectively, jointly and severally, the "Borrowers"), each of
the lenders that is a signatory to this Amendment (together with its successors
and permitted assigns, individually, a "Lender" and, collectively, the
"Lenders"), and FOOTHILL CAPITAL CORPORATION, a California corporation, as the
arranger and administrative agent for the Lenders (in such capacity, together
with its successors, if any, in such capacity, "Agent" and together with the
Lenders, collectively, the "Lender Group"):

                               W I T N E S S E T H

       WHEREAS, the Borrowers and the Lender Group are parties to that certain
Loan Agreement, dated as of March 31, 2000, as amended by those certain
Amendments Numbers One, Two and Three to Loan Agreement dated as of March 28,
2001, May 18, 2001, and November 19, 2001 respectively (as amended, restated,
supplemented, or modified from time to time, the "Loan Agreement");

       WHEREAS, the Borrowers have requested that the Lender Group consent to
the amendment of the Loan Agreement and to provide an optional Overadvance to
Borrowers as set forth herein; and

       WHEREAS, subject to the satisfaction of the conditions set forth herein,
the Lender Group is willing to so consent to the amendment of the Loan
Agreement.

       NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

1.     DEFINITIONS. Capitalized terms used herein and not otherwise defined
herein shall have the meanings ascribed to them in the Loan Agreement, as
amended hereby.

2.     AMENDMENTS TO LOAN AGREEMENT.

       (a)    Section 1.1 of the Loan Agreement is hereby amended by inserting
the following definition in its proper alphabetical location:

              "Fourth Amendment" means that certain Amendment Number Four to
       Loan Agreement, dated as of January 29, 2002, among the Borrowers and the
       Lender Group.

              "Fourth Amendment Fee" has the meaning set forth in Section
       2.12(i).

       (b)    Section 2.4(e)(i) of the Loan Agreement is hereby amended and
restated in its entirety as follows:

                                       1
<PAGE>

              "(i)   Agent hereby is authorized by Borrowers and the Lenders,
from time to time in Agent's sole discretion, (1) after the occurrence and
during the continuance of a Default or an Event of Default, or (2) at any time
that any of the other applicable conditions precedent set forth in Section 3
have not been satisfied, to make Advances to Borrowers on behalf of the Lenders
that Agent, in its reasonable business judgment, deems necessary or desirable
(A) to preserve or protect the Collateral, or any portion thereof, or (B) to
enhance the likelihood of repayment of the Obligations (any of the Advances
described in this Section 2.4(e) shall be deemed to be Tranche A Advances
hereunder and shall be referred to as "Agent Advances"); provided, however, that
at no time shall the aggregate amount of outstanding Agent Advances under this
Section 2.4(e) exceed $10,000,000. Each Agent Advance is an Advance hereunder
and shall be subject to all the terms and conditions applicable to other
Advances, except that all payments thereon shall be payable to Agent solely for
its own account."

       (c) The first paragraph of Section 2.4(i) of the Loan Agreement is hereby
amended and restated in its entirety as follows:

              "(i)   OPTIONAL OVERADVANCES. Any contrary provision of this
Agreement notwithstanding, if the condition for borrowing under Section 3.3(d)
cannot be fulfilled, the Lenders nonetheless hereby authorize Agent or Swing
Lender, as applicable, and Agent or Swing Lender, as applicable, may, but is not
obligated to, knowingly and intentionally continue to make Tranche A Advances
(including Swing Loans) to Borrowers, such failure of condition notwithstanding,
so long as, at the time any such Tranche A Advance is made, (i) the outstanding
Tranche A Usage does not exceed the Borrowing Base by more than $11,000,000,
(ii) after giving effect to any such Overadvance, the then extant amount of
Tranche A Advances does not exceed $50,000,000, and (iii) after giving effect to
any such Overadvance, the aggregate amount of outstanding optional Overadvances
made by Agent and Swing Lenders to Borrowers pursuant to this Section 2.4(i)
shall not exceed $11,000,000. The foregoing provisions are for the sole and
exclusive benefit of Agent, Swing Lenders, and the Lenders and are not intended
to benefit Borrowers in any way. The Advances and Swing Loans, as applicable,
that are made pursuant to this Section 2.4(i) shall be subject to the same terms
and conditions as any other Advance or Swing Loan, as applicable, except that
the rate of interest applicable thereto shall be the rates set forth in Section
2.7(c) hereof without regard to the presence or absence of a Default or Event of
Default."

       (d) Section 2.12 of the Loan Agreement is hereby amended by deleting the
word "and" at the end of clause (g), by deleting the period at the end of clause
(h) and replacing it with the words ", and", and by adding the following new
clause (i):

              "(i)   FOURTH AMENDMENT FEE. For the ratable benefit of each
Lender which acts as a Swing Lender in connection with the optional Overadvances
provided for under the Fourth Amendment, a fee of $1,000,000 (the "Fourth
Amendment Fee"), which shall be fully earned and paid in full in cash in
immediately available funds on or before the date when such optional
Overadvances are made."

3.     OTHER AGREEMENTS.

                                       2
<PAGE>

       (a) Arnos Corporation, a Nevada corporation ("Arnos Swing Lender"),
hereby agrees pursuant to the provisions of Section 2.4(i) of the Loan Agreement
to make an optional Overadvance, as a Swing Loan, in the amount of $7,700,000
(the "Arnos Overadvance").

       (b) Madeleine LLC, a Delaware limited liability company, together with
certain of its Affiliates (collectively, "Madeleine Swing Lender") hereby
agrees, pursuant to the provisions of Section 2.4(i) of the Loan Agreement to
make an optional Overadvance, as a Swing Loan, in the amount of $3,300,000 (the
"Madeleine Overadvance"; the Arnos Overadvance and the Madeleine Overadvance,
collectively the "Designated Overadvances").

       (c) By the execution of this Amendment, (i) Agent hereby appoints Arnos
Swing Lender to act as a Swing Lender in respect of the Arnos Overadvance, and
Arnos Swing Lender hereby accepts such appointment and agrees to act as a Swing
Lender in respect of the Arnos Overadvance; and (ii) Agent hereby appoints
Madeleine Swing Lender to act as a Swing Lender in respect of the Madeleine
Overadvance, and Madeleine Swing Lender hereby accepts such appointment and
agrees to act as a Swing Lender in respect of the Madeleine Overadvance.

       (d) Each of the parties hereto hereby agrees that, the provisions of the
Loan Agreement to the contrary notwithstanding (including without limitation,
the provisions of Sections 2.4(i) and 2.7(a) of the Loan Agreement), the
Designated Overadvances shall bear interest on the Daily Balance thereof at a
per annum rate equal to the Base Rate plus 5.0 percentage points.

       (e) Each of the parties hereto hereby agrees that, the provisions of the
Loan Agreement and the other Loan Documents to the contrary notwithstanding
(including without limitation, the provisions of Section 2.5(b) of the Loan
Agreement), (i) all payments and all proceeds of Collateral which would
otherwise be applied to pay interest due in respect of the Designated
Overadvances pursuant to Section 2.5(b)(F) of the Loan Agreement shall not be
paid until all accrued interest in respect of each other Obligation has been
paid in full, and shall thereafter be applied ratably to pay all interest due in
respect of the Designated Overadvances until paid in full, and (ii) all payments
and all proceeds of Collateral which would otherwise be applied to pay the
principal amount of the Designated Overadvances shall not be paid until the
principal amount of all Tranche B Advances has been paid in full, and shall
thereafter be applied ratably to pay the principal amount of the Designated
Overadvances until paid in full.

       (f) Each of the parties hereto hereby agrees that, the provisions of the
Loan Agreement notwithstanding (including without limitation the provisions of
Section 2.4(f)), except for the respective obligations of Arnos Swing Lender and
Madeleine Swing Lender to reimburse Agent in full for the principal amount of
the Designated Overadvances made by Agent on behalf of Arnos Swing Lender and
Madeleine Swing Lender respectively, each of the calculations set forth pursuant
to Section 2.4(f) of the Loan Agreement shall be made without regard to the
Designated Overadvances, and no Lender shall have any obligations with any other
Lender under Section 2.4 of the Loan Agreement in respect of the Designated
Overadvances.

       (g) Each Borrower authorizes Agent to retain an accounting firm selected
jointly by Arnos Swing Lender and Madeleine Swing Lender, in their sole
discretion, to prepare for the Lender Group weekly cash flow projections and
other financial reports requested by the Lender

                                       3
<PAGE>

Group with respect to the Borrowers, and to charge all fees and expenses
incurred by such accounting firm to Borrowers' Loan Account.

       (h) The agreements set forth herein are limited to the specifics hereof
and shall not be construed as an agreement by any member of the Lender Group (i)
to make an Overadvance in the future, (ii) to appoint any Lender as a Swing
Lender in the future, or (iii) to accept such appointment as a Swing Lender in
the future.

4.     CONDITIONS PRECEDENT. The satisfaction of each of the following shall
constitute conditions precedent to the respective obligations of Arnos Swing
Lender and Madeleine Swing Lender to make the Designated Overadvances:

       (a) The representations and warranties in the Loan Agreement and the
other Loan Documents shall be true and correct in all respects on and as of the
date hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date);

       (b) Agent shall have received the reaffirmation and consent of each
Guarantor attached hereto as Exhibit A, duly executed and delivered by an
authorized official of each Guarantor;

       (c) Except for any Default or Event of Default occurring as a result of
the failure of Borrowers to maintain any of the financial covenants set forth in
Section 7.19 of the Loan Agreement for the 12 months ended December 31, 2001, no
Default or Event of Default shall have occurred and be continuing on the date
hereof or as of the date of the effectiveness of this Amendment; and

       (d) No injunction, writ, restraining order, or other order of any nature
prohibiting, directly or indirectly, the consummation of the transactions
contemplated herein shall have been issued and remain in force by any
Governmental Authority against any Obligor or the Lender Group.

5.     CONSTRUCTION. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
AND TO BE PERFORMED IN THE STATE OF NEW YORK.

6.     ENTIRE AMENDMENT; EFFECT OF AMENDMENT. This Amendment, and terms and
provisions hereof, constitute the entire agreement among the parties pertaining
to the subject matter hereof and supersedes any and all prior or contemporaneous
amendments relating to the subject matter hereof. Except for the amendments to
the Loan Agreement expressly set forth in Section 2 hereof, the Loan Agreement
and other Loan Documents shall remain unchanged and in full force and effect.
The execution, delivery, and performance of this Amendment shall not operate as
a waiver of or, except as expressly set forth herein, as an amendment of, any
right, power, or remedy of the Lender Group as in effect prior to the date
hereof (including without limitation, with respect to any Default or Event of
Default occurring as a result of the failure of Borrowers to comply with the
covenants set forth in Section 7.19 of the Loan Agreement or with any other
provision of any Loan Document). The amendments and

                                       4
<PAGE>

other agreements set forth herein are limited to the specifics hereof, shall not
apply with respect to any facts or occurrences other than those on which the
same are based, shall not excuse future non-compliance with the Loan Agreement,
and shall not operate as a consent to any further or other matter, under the
Loan Documents. To the extent any terms or provisions of this Amendment conflict
with those of the Loan Agreement or other Loan Documents, the terms and
provisions of this Amendment shall control. This Amendment is a Loan Document.

7.     COUNTERPARTS; TELEFACSIMILE EXECUTION. This Amendment may be executed in
any number of counterparts, all of which taken together shall constitute one and
the same instrument and any of the parties hereto may execute this Amendment by
signing any such counterpart. Delivery of an executed counterpart of this
Amendment by telefacsimile shall be equally as effective as delivery of an
original executed counterpart of this Amendment. Any party delivering an
executed counterpart of this Amendment by telefacsimile also shall deliver an
original executed counterpart of this Amendment, but the failure to deliver an
original executed counterpart shall not affect the validity, enforceability, and
binding effect of this Amendment.

8.     MISCELLANEOUS.

       (a) Upon the effectiveness of this Amendment, each reference in the Loan
Agreement to "this Agreement", "hereunder", "herein", "hereof" or words of like
import referring to the Loan Agreement shall mean and refer to the Loan
Agreement as amended by this Amendment.

       (b) Upon the effectiveness of this Amendment, each reference in the Loan
Documents to the "Loan Agreement", "thereunder", "therein", "thereof" or words
of like import referring to the Loan Agreement shall mean and refer to the Loan
Agreement as amended by this Amendment.

                                       5
<PAGE>

       IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
and delivered as of the date first written above.

                         PHILIP SERVICES CORPORATION,
                         a Delaware corporation

                         PSC BY-PRODUCTS SERVICES, INC.,
                         a Delaware corporation

                         PSC INDUSTRIAL OUTSOURCING, INC.,
                         a Delaware corporation

                         PSC METALS, INC.,
                         an Ohio corporation

                         PSC INDUSTRIAL SERVICES, INC.,
                         a Delaware corporation

                         REPUBLIC ENVIRONMENTAL RECYCLING
                         (NEW JERSEY), INC.,
                         a Delaware corporation

                         NORTHLAND ENVIRONMENTAL, INC.,
                         a Delaware corporation

                         SOLVENT RECOVERY CORPORATION,
                         a Missouri corporation

                         PHILIP ENVIRONMENTAL SERVICES
                         CORPORATION,
                         a Missouri corporation

                         COUSINS WASTE CONTROL CORPORATION,
                         an Ohio corporation

                         21ST CENTURY ENVIRONMENTAL MANAGEMENT,
                         INC. OF NEVADA,
                         a Nevada corporation

                         21ST CENTURY ENVIRONMENTAL MANAGEMENT,
                         INC. OF RHODE ISLAND,
                         a Rhode Island corporation

                                      S-1
<PAGE>

                         CHEMICAL POLLUTION CONTROL, INC.
                         OF NEW YORK - A 21ST CENTURY
                         ENVIRONMENTAL MANAGEMENT
                         COMPANY,
                         a New York corporation

                         BURLINGTON ENVIRONMENTAL INC.,
                         a Washington corporation

                         REPUBLIC ENVIRONMENTAL SYSTEMS
                         (PENNSYLVANIA), INC.,
                         a Pennsylvania corporation

                         CHEMICAL POLLUTION CONTROL, INC.
                         OF FLORIDA - A 21ST CENTURY
                         ENVIRONMENTAL MANAGEMENT
                         COMPANY,
                         a Florida corporation

                         RESOURCE RECOVERY CORPORATION,
                         a Washington corporation

                         REPUBLIC ENVIRONMENTAL SYSTEMS
                         (TRANSPORTATION GROUP), INC.,
                         a Pennsylvania corporation

                         CHEM-FREIGHT, INC.,
                         an Ohio corporation

                         NORTRU, INC.,
                         a Michigan corporation

                         CHEMICAL RECLAMATION SERVICES, INC.,
                         a Texas corporation

                         PHILIP RECLAMATION SERVICES, HOUSTON, INC.,
                         a Texas corporation

                         THERMALKEM INC.,
                         a Delaware corporation

                         ALLWORTH, INC.,
                         an Alabama corporation

                         RHO-CHEM CORPORATION,
                         a California corporation

                                      S-2
<PAGE>

                         CYANOKEM INC.,
                         a Michigan corporation

                         INTERNATIONAL CATALYST, INC.,
                         a Nevada corporation

                         ALLWASTE TANK CLEANING, INC.,
                         a Georgia corporation

                         CAPPCO TUBULAR PRODUCTS USA, INC.,
                         a Georgia corporation

                         PHILIP METALS (NEW YORK), INC.,
                         a New York corporation

                         TOTAL REFRACTORY SYSTEMS, INC.,
                         a Nevada corporation

                         PHILIP SERVICES / NORTH CENTRAL,
                         INC.,
                         an Iowa corporation

                         RMF GLOBAL, INC.,
                         an Ohio corporation

                         JESCO INDUSTRIAL SERVICE, INC.,
                         a Kentucky corporation

                         PHILIP METALS (USA), INC.,
                         an Ohio corporation

                         PHILIP METALS RECOVERY (USA) INC.,
                         an Arizona corporation

                         ACE/ALLWASTE ENVIRONMENTAL
                         SERVICES OF INDIANA, INC.,
                         an Illinois corporation

                         LUNTZ ACQUISITION (DELAWARE) CORPORATION,
                         a Delaware corporation

                         SERV-TECH EPC, INC.,
                         a Nevada corporation

                         PHILIP SERVICES PHENCORP
                         INTERNATIONAL INC.,
                         a Delaware corporation

                                      S-3
<PAGE>

                         PHILIP TRANSPORTATION AND
                         REMEDIATION, INC.,
                         a California corporation

                         DELTA MAINTENANCE, INC.,
                         a Louisiana corporation

                         PHILIP SERVICES CECATUR HOLDINGS LLC,
                         a Delaware limited liability company
                         BY:  PHILIP SERVICES CECATUR, INC.
                         Its:  Sole Member

                         PHILIP SERVICES CECATUR INC.,
                         a Delaware corporation

                         PHILIP SERVICES (PHENCORP) LLC,
                         a Delaware limited liability company
                         BY:  PHILIP SERVICES PHENCORP INTERNATIONAL, INC.
                         Its:  Sole Member

                         PSC RECOVERY SYSTEMS, INC.,
                         a Georgia corporation

                         REPUBLIC ENVIRONMENTAL SYSTEMS
                         (TECHNICAL SERVICES GROUP), INC.,
                         a New Jersey corporation

                         PHILIP INDUSTRIAL SERVICES, INC.,
                         a Delaware corporation a successor in interest to
                         Philip Industrial Services (USA), Inc.

                         RMF INDUSTRIAL CONTRACTING, INC.,

                         a Michigan corporation

                         BY:
                            ----------------------------------------------------
                                 Thomas P. O'Neill, Jr.
                         a Vice President of each of
                         the above listed entities
                         which is not a limited
                         liability company, and as
                         Vice President of the
                         member entity of any
                         limited liability company

                                      S-4
<PAGE>

                         FOOTHILL CAPITAL CORPORATION,

                         a California corporation, as Agent and as a Lender

                         By:
                            ----------------------------------------------------
                         Name:
                              --------------------------------------------------
                         Title:
                               -------------------------------------------------

                                      S-5
<PAGE>

                         FOOTHILL INCOME TRUST L.P.,
                         a Delaware limited partnership, as a Lender

                         By:  FIT GP, LLC, its general partner

                         By:
                            --------------------------------------------
                         Its: Managing Member

                         FOOTHILL PARTNERS III, L.P.,
                         a Delaware limited partnership, as a Lender

                         By:
                            --------------------------------------------
                         Its: Managing General Partner

                                      S-6
<PAGE>

                         ABLECO FINANCE LLC,
                         a Delaware limited liability company, as a Lender

                         By:
                            ----------------------------------------------------
                         Name:
                              --------------------------------------------------
                         Title:
                               -------------------------------------------------

                                      S-7
<PAGE>

                         MADELEINE LLC,
                         a New York limited liability company, as a Lender

                         By:
                            ----------------------------------------------------
                         Name:
                              --------------------------------------------------
                         Title:
                               -------------------------------------------------

                                      S-8
<PAGE>

                         ARNOS CORPORATION,
                         a Nevada corporation, as a Lender

                         By:
                            ----------------------------------------------------
                         Name:
                              --------------------------------------------------
                         Title:
                               -------------------------------------------------

                                      S-9
<PAGE>

                                    EXHIBIT A

                            REAFFIRMATION AND CONSENT

       All capitalized terms used herein but not otherwise defined herein shall
have the meanings ascribed to them in that certain Loan Agreement by and among
PHILIP SERVICES CORPORATION, a Delaware corporation ("Parent"), each of Parent's
Subsidiaries identified on the signature pages hereof (such Subsidiaries,
together with Parent, each a "Borrower" and collectively, jointly and severally,
the "Borrowers"), each of the lenders that is a signatory to this Amendment
(together with its successors and permitted assigns, individually, "Lender" and,
collectively, "Lenders"), and FOOTHILL CAPITAL CORPORATION, a California
corporation, as the arranger and administrative agent for the Lenders (in such
capacity, together with its successors, if any, in such capacity, "Agent" and
together with the Lenders, collectively, the "Lender Group"), dated as of March
31, 2000, as amended by those certain Amendments Numbers One, Two and Three to
Loan Agreement dated as of March 28, 2001, May 18, 2001, and November 19, 2001
respectively (as amended, restated, supplemented or otherwise modified, the
"Loan Agreement") or in Amendment Number Four to Loan Agreement, dated as of
January 29, 2002 (the "Amendment"), among the Borrowers and Lender Group. The
undersigned hereby (a) represent and warrant to the Lender Group that the
execution, delivery, and performance of this Reaffirmation and Consent are
within its powers, have been duly authorized by all necessary action, and are
not in contravention of any law, rule, or regulation, or any order, judgment,
decree, writ, injunction, or award of any arbitrator, court, or governmental
authority, or of the terms of its charter or bylaws, or of any contract or
undertaking to which it is a party or by which any of its properties may be
bound or affected; (b) consents to the transactions contemplated by the
Amendment; (c) acknowledges and reaffirms its obligations owing to the Lender
Group under any Loan Documents to which it is a party; and (d) agrees that each
of the Loan Documents to which it is a party is and shall remain in full force
and effect. Although the undersigned has been informed of the matters set forth
herein and has acknowledged and agreed to same, it understands that the Lender
Group has no obligations to inform it of such matters in the future or to seek
its acknowledgment or agreement to future amendments, and nothing herein shall
create such a duty. Delivery of an executed counterpart of this Reaffirmation
and Consent by telefacsimile shall be equally as effective as delivery of an
original executed counterpart of this Reaffirmation and Consent. Any party
delivering an executed counterpart of this Reaffirmation and Consent by
telefacsimile also shall deliver an original executed counterpart of this
Reaffirmation and Consent but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect of
this Reaffirmation and Consent. This Reaffirmation and Consent shall be governed
by the laws of the State of New York.

                            [signature page follows]

<PAGE>

       IN WITNESS WHEREOF, the undersigned have each caused this Reaffirmation
and Consent to be executed as of the date of the Amendment.

                         PHILIP SERVICES INC.,
                         an Ontario corporation

                         By:
                            ----------------------------------------------------
                            Name:        Thomas P. O'Neill, Jr.
                            Title:       Vice President and Treasurer

                         PHILIP ANALYTICAL SERVICES INC.,
                         an Ontario corporation

                         By:
                            ----------------------------------------------------
                            Name:        Thomas P. O'Neill, Jr.
                            Title:       Vice President and Treasurer

                         PHILIP INVESTMENT CORP.,
                         an Ontario corporation

                         By:
                            ----------------------------------------------------
                            Name:        Thomas P. O'Neill, Jr.
                            Title:       Vice President and Treasurer

                         ST DELTA CANADA, INC.,
                         an Ontario corporation

                         By:
                            ----------------------------------------------------
                            Name:        Thomas P. O'Neill, Jr.
                            Title:       Vice President and Treasurer

<PAGE>

                         NORTRU, LTD.,
                         an Ontario corporation

                         By:
                            ----------------------------------------------------
                            Name:        Thomas P. O'Neill, Jr.
                            Title:       Vice President and Treasurer

                         ALLIES STAFFING LTD.,
                         an Ontario corporation

                         By:
                            ----------------------------------------------------
                            Name:        Thomas P. O'Neill, Jr.
                            Title:       Vice President and Treasurer

                         SERVTECH CANADA, INC.,
                         a Canadian corporation

                         By:
                            ----------------------------------------------------
                            Name:        Thomas P. O'Neill, Jr.
                            Title:       Vice President and Treasurer

                         ARC DUST PROCESSING (BARBADOS) LIMITED,
                         a Barbados corporation

                         By:
                            ----------------------------------------------------
                            Name:        Thomas J. Olsen
                            Title:       Director

<PAGE>

                         PHILIP INTERNATIONAL DEVELOPMENT INC.,
                         a Barbados corporation

                         By:
                            ----------------------------------------------------
                            Name:        Thomas J. Olsen
                            Title:       Director

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