SUMMIT BANK

                               SECURITY AGREEMENT
                  (EQUIPMENT AND/OR INVENTORY AND/OR ACCOUNTS)

AGREEMENT by and between Summit Bank ("BANK") and Environmental Waste Management
Associates,  L.L.C.; Integrated Analytical Laboratories,  L.L.C.;  Environmental
Waste Management Associates, Inc.; and Integrated Analytical Laboratories,  Inc.
(jointly and severally, "BORROWER"), dated as set forth.

1.       DEFINITIONS
         The terms set forth below shall be defined as follows:
         1.1      "Date of Agreement" is: August 14, 2000.
         1.2      "Borrower"  means jointly and severally:  Environmental  Waste
                  Management Associates,  L.L.C., a New Jersey limited liability
                  company;  Integrated  Analytical  Laboratories,  L.L.C., a New
                  Jersey  limited   liability   company;   Environmental   Waste
                  Management  Associates,  Inc., a New jersey  corporation;  and
                  Integrated  Analytical   Laboratories,   Inc.,  a  New  Jersey
                  corporation.
         1.3      Borrower's  Address  means:  100 Misty Lane,  Parsippany,  New
                  Jersey 07054 as to Environmental Waste Management  Associates,
                  L.L.C.;   Integrated  Analytical  Laboratories,   L.L.C.;  and
                  Environmental  Waste  Management  Associates,  Inc.;  and  273
                  Franklin  Road,  Randolph,  New Jersey 07869 as to  Integrated
                  Analytical Laboratories, Inc.
         1.4      "Bank's Address" is:  210 Main Street, Hackensack, New Jersey
                  07601.
         1.5      "Collateral" means all property,  assets or rights that secure
                  the payment of the Obligations,  whether now owned or existing
                  or hereafter created or acquired and cash and noncash proceeds
                  thereof.
         1.6      "Equipment"  means, in addition to the definition of equipment
                  contained in the Uniform  Commercial Code,  including  without
                  limitation,  all  machinery  and  equipment  and furniture and
                  fixtures of Borrower  (excluding motor vehicles and automotive
                  equipment),  now owned or hereafter acquired by Borrower,  and
                  used or acquired  for use in business  of  Borrower,  together
                  with  all  accessions   thereto  and  all   substitutions  and
                  replacements thereof and parts therefor;  all or part of which
                  may be or will be installed in, affixed to or attached to real
                  estate  situated  at 100 Misty  Lane,  Parsippany,  New Jersey
                  07054 and 273 Franklin Road,  Randolph,  New Jersey 07869, and
                  including,  without  limitation,  all Equipment  listed on any
                  schedule  attached hereto;  and cash and non-cash  proceeds of
                  all of the foregoing.
         1.7      "Inventory"  means, in addition to the definition of inventory
                  contained in the Uniform  Commercial Code,  including  without
                  limitation, all goods, merchandise and other personal property
                  now owned or hereafter acquired by Borrower which are held for
                  sale,  consignment  or  lease,  or  are  furnished  or  to  be
                  furnished  under any contract of service or are raw materials,
                  work-in-process,  supplies  or  materials  used or consumed in
                  Borrower's  business;  and all of the  rights of  Borrower  as
                  unpaid  seller  of goods  or  services  and in goods  that are
                  returned,   reclaimed  or   repossessed   including,   without
                  limitation,  the  rights of  stoppage  in  transit,  replevin,
                  reclamation  and resale;  and all  products  thereof,  and all
                  substitutions,  replacements, additions or accessions therefor
                  and  thereto;  all cash  and  noncash  proceeds  of all of the
                  foregoing,   including  insurance  proceeds,   and  including,
                  without  limitation,  all  Inventory  listed  on any  schedule
                  attached hereto.
         1.8      "Receivables" means, in addition to the definition of accounts
                  contained in the Uniform  Commercial Code,  including  without
                  limitation,  all  accounts,  instruments,  documents,  chattel
                  paper and other  obligations or indebtedness  owed to Borrower
                  from  whatever  source  arising;  all  rights of  Borrower  to
                  receive  any  payments  in money or kind;  all  guarantees  of
                  Receivables  and  security  therefor;  all  cash  and  noncash
                  proceeds of all of the foregoing;  all of the right, title and
                  interest  of  Borrower  in and  with  respect  to  the  goods,
                  services or other  property which give rise to or which secure
                  any of the  Receivables  and  insurance  policies and cash and
                  noncash proceeds  relating  thereto,  and all of the rights of
                  Borrower  as unpaid  seller of goods or  services,  including,
                  without  limitation,   the  rights  of  stoppage  in  transit,
                  replevin,  reclamation  and resale;  and all of the foregoing,
                  whether now existing or hereafter created or acquired.
         1.9      "General  Intangibles" means, in addition to the definition of
                  general intangibles  contained in the Uniform Commercial Code,
                  including  without   limitation,   all  trademarks,   patents,
                  copyrights,  service marks,  brand names,  trade names,  trade
                  styles, together with the goodwill of the business represented
                  thereby,  all choses in action,  all insurance  proceeds,  all
                  claims for money due, including tax refunds, from any Federal,
                  state  or  municipal   government  agency  thereof  or  taxing
                  authority,  now owned or  hereafter  acquired  or  created  by
                  Borrower   together  with  all  renewals,   replacements   and
                  substitutions  therefor  or  accessions  thereto,  all  rights
                  accruing therefrom and cash and noncash proceeds thereof.
         1.10     "Loan Document(s)" means any Credit Agreement,  Note, Security
                  Agreement,  Mortgage or any other document heretofore,  now or
                  hereafter  executed  by  Borrower  to Bank  together  with all
                  modifications, extensions and/or renewals thereof.
         1.11     "Event of Default" means each and every event specified in
                  Section 4 of this Agreement.


<PAGE>





         1.12     "Obligations"   means  all   indebtedness,   obligations   and
                  liabilities of Borrower to Bank of every kind and description,
                  direct or indirect,  secured or  unsecured,  joint or several,
                  absolute or  contingent,  due or to become due,  including any
                  overdrafts,  whether for payment or performance,  now existing
                  or hereafter arising,  whether presently  contemplated or not,
                  regardless  of how  the  same  arise  or by  what  instrument,
                  agreement or book account  they may be  evidenced,  or whether
                  evidenced  by  any  instrument,  agreement  or  book  account,
                  including but not limited to all loans  (including any loan by
                  modification,   renewal  or   extension),   all   indebtedness
                  including any arising from any  derivative  transactions,  all
                  undertakings  to take or refrain  from taking any action,  all
                  indebtedness,  liabilities or obligations  owing from Borrower
                  to  others   which  Bank  may  have   obtained  by   purchase,
                  negotiation,   discount,  assignment  or  otherwise;  and  all
                  interest,  taxes, fees, charges, expenses and attorney's fees,
                  (whether or not such attorney is a regularly salaried employee
                  of Bank, any parent corporation or any subsidiary or affiliate
                  thereof, whether now existing or hereafter created) chargeable
                  to Borrower or incurred by Bank under the Loan  Documents,  or
                  any other  document  or  instrument  delivered  in  connection
                  herewith or therewith.
         To the  extent not  defined in Section 1 (or any other Loan  Document),
         unless the context  otherwise  requires,  all other terms  contained in
         this  Agreement  shall  have  the  meanings  attributed  to them by the
         Uniform  Commercial  Code in force in the State of New Jersey as of the
         Date of Agreement, to the extent that same are used or defined therein.
         To the extent not defined in Section 1,  unless the  context  otherwise
         requires,  all accounting  terms contained in this Agreement shall have
         the  meanings  attributed  to them  by  Generally  Accepted  Accounting
         Principles  as of the Date of  Agreement,  to the extent  that same are
         used or defined therein.
2.       GRANT OF SECURITY INTEREST
         To secure payment and performance of the  Obligations,  Borrower hereby
         pledges, assigns and transfers to Bank, and grants to Bank a continuing
         lien on and security interest in and to all of the following designated
         Collateral: Equipment; Inventory; Receivables; and General Intangibles.
3.       SPECIFIC REPRESENTATIONS, WARRANTIES AND COVENANTS WITH RESPECT TO
         COLLATERAL
         With respect to the Collateral,  Borrower hereby  represents,  warrants
         and covenants with Bank as follows:
         3.1      If Equipment is a part of the Collateral:
                  3.1.1    Borrower  shall keep the Equipment  only at 100 Misty
                           Lane,  Parsippany,  New Jersey 07054 which  premises
                           are owned by  Borrower;  273  Franklin  Road,
                           Randolph,  New Jersey 07869 which  premises are owned
                           by Borrower  and 85 Fulton  Street,  Boonton, New
                           Jersey which premises are owned by Fulton Street
                           Associates.  If the Collateral is located at real
                           estate  owned by a party  other than  Borrower
                           and/or  leased to Borrower,  Borrower  hereby  agrees
                           to provide  Bank with  disclaimers  and  waivers
                           necessary to make the Security  Interest in the
                           Collateral  valid against  Borrower and any other
                           person who may hold an interest in such real estate;
                  3.1.2    Borrower  shall keep and  maintain  all  Equipment in
                           good  operating   condition  and  repair,   make  all
                           necessary  repairs  thereto and  replacement of parts
                           thereof  so that the value and  operating  efficiency
                           thereof  shall  at  all  times  be   maintained   and
                           preserved;  and  Borrower  shall  keep  complete  and
                           accurate  books  and  records  with  respect  to  the
                           Equipment, including maintenance records;
                  3.1.3    Borrower  shall  deliver to Bank any and all evidence
                           of ownership of, and certificate of title to, any and
                           all Collateral;
                  3.1.4    Borrower shall not, without the prior written consent
                           of Bank,  sell,  offer to sell, lease or in any other
                           manner  dispose  of  any  Collateral  except  in  the
                           ordinary course of business; and
                  3.1.5    Borrower  shall notify Bank no later than thirty (30)
                           days  prior to any change of any  location  where the
                           Collateral is or may be kept.
         3.2      If Inventory is a part of the Collateral:
                  3.2.1    All  Inventory  is in  possession  of Borrower at 100
                           Misty  Lane,  Parsippany,  New  Jersey  07054 and 273
                           Franklin  Road,  Randolph,   New  Jersey  07869,  and
                           Borrower shall notify Bank, no later than thirty (30)
                           days  prior to any change of any  location  where the
                           Inventory is or may be kept;
                  3.2.2    Borrower shall not sell, lease or otherwise  transfer
                           any interest in the  Inventory  except that  Borrower
                           may, until an Event of Default occurs, hold, process,
                           sell or consume  Inventory in the ordinary  course of
                           Borrower's business,  excluding, however, any sale or
                           transfer made in partial or total  satisfaction  of a
                           debt;
                  3.2.3    Borrower  shall keep  current  stock,  cost and sales
                           records of the  Inventory,  accurately  itemizing and
                           describing the types and quantities of Inventory, and
                           the cost and  selling  price  thereof  and all books,
                           records and  documents  relating to the Inventory are
                           and will be genuine, complete and correct;
                  3.2.4    None of the  Inventory  is,  or at any  time or times
                           hereafter  will be stored with a bailee or  consignee
                           without the prior written consent of Bank; and
                  3.2.5    Borrower shall,  at Bank's  request,  deliver to Bank
                           any and all evidence of ownership of,  certificate of
                           title to, or other documents  evidencing any interest
                           in, any and all of the Inventory.
         3.3      If Receivables are a part of the Collateral:
                  3.3.1    The address of the chief executive office of Borrower
                           is  Borrower's  Address  and  Borrower  has no  other
                           places of  business.  All records  pertaining  to the
                           Receivables  (including  computer  records)  and  all
                           returns of Inventory are kept at Borrower's  Address,
                           and Borrower  will notify Bank,  no later than thirty
                           (30) days prior to any change in address of the chief
                           executive  office of Borrower or of the change of the
                           location  where records  pertaining to Receivables or
                           returns of Inventory are kept;
                  3.3.2    All books,  records and documents  relating to any of
                           the Receivables  (including computer records) are and
                           will be genuine and in all respects what they purport
                           to be; and the amount of each Receivable shown on the
                           books  and  records  of  Borrower  is and will be the
                           correct  amount  actually  owing  or to be  owing  at
                           maturity of such Receivable;
                  3.3.3    Until Bank directs otherwise,  Borrower shall collect
                           the Receivables.  Any proceeds  collected by Borrower
                           shall not be commingled with other funds of Borrower,
                           shall be held in  express  trust for the  benefit  of
                           Bank and,  upon the request of Bank,  be  immediately
                           delivered  to Bank in the form  received,  except for
                           necessary endorsements to permit collection. Bank may
                           in its sole  discretion,  allow  Borrower to use such
                           funds to such extent and for such periods, if any, as
                           Bank elects;
                  3.3.4    Borrower shall notify Bank if any  Receivables  arise
                           out  of  contracts  with  the  United  States  or any
                           department,  agency or instrumentality  thereof,  and
                           Borrower shall execute any  instruments  and take any
                           steps to  protect  the  rights of Bank in and to such
                           Receivables  under  the  provisions  of  the  Federal
                           Assignment  of  Claims  Act  or  any  similar  act or
                           regulation; and
                  3.3.5    Borrower  shall provide  Bank,  at its request,  from
                           time to time with: confirmatory assignment schedules;
                           copies of all invoices  relating to the  Receivables;
                           evidence of shipment  or delivery of  Inventory;  and
                           such further information and/or schedules as Bank may
                           reasonably  require,  all in a form  satisfactory  to
                           Bank.
4.       EVENTS OF DEFAULT AND ACCELERATION
         4.1      The  occurrence  of any one or more of the  following  events
                  shall  constitute  an Event of  Default hereunder:
                  4.1.1    Failure to perform or observe any  covenant,  term or
                           agreement  herein set forth or set forth in any Loan
                           Document;
                  4.1.2    Any representation or warranty made or deemed made by
                           Borrower  herein or in any Loan  Document or which is
                           contained in any  certificate,  document,  opinion or
                           other  statement  furnished  now or at any time shall
                           prove to be incorrect  in any material  respect on or
                           as of the date made or deemed to be made;
                  4.1.3    Occurrence  of any Event of Default  provided  for in
                           any Loan Document including,  without limitation, the
                           Note or Section 6 of the Secured Credit Agreement.
         4.2      If any  Event  of  Default  shall  occur,  then or at any time
                  thereafter,  while such Event of Default shall continue,  Bank
                  may declare all  Obligations  to be due and  payable,  without
                  notice,  protest,  presentment  or  demand,  all of which  are
                  hereby expressly waived by Borrower.
5.       RIGHTS AND REMEDIES
         Bank shall have the rights and  remedies  set forth in the Note and the
         Secured Credit  Agreement and any other Loan  Document,  together with:
         5.1     The right to enter  and/or  remain  upon the  premises  of
                 Borrower without any obligation to pay rent to Borrower or
                 others, or any other place or places  where any of the
                 Collateral is located and kept and:
                  5.1.1    Remove  Collateral  therefrom to the premises of Bank
                           or any agent of Bank, for such time  as  Bank  may
                           desire  in  order  to  maintain,collect, sell and/or
                           liquidate the Collateral.
                  5.1.2    Use such premises, together with materials, supplies,
                           books and records of Borrower, to maintain possession
                           and/or  the  condition  of  the  Collateral,  and  to
                           prepare the  Collateral  for selling,  liquidating or
                           collecting. Bank may require Borrower to assemble the
                           Collateral  and make it  available to Bank at a place
                           to  be   designated   by  Bank  which  is  reasonably
                           convenient to both parties.
         5.2      The right to file a copy (including a carbon,  photographic or
                  other  reproduction)  of this Security  Agreement in lieu of a
                  financing statement.
6.       GENERAL PROVISIONS
         6.1      This Agreement is a security  agreement  within the meaning of
                  the  Uniform  Commercial  Code in  force  in the  State of New
                  Jersey.
         6.2      The General  Provisions  contained in Section 8 of the Secured
                  Credit   Agreement   shall   be  fully   applicable   and  are
                  incorporated herein as terms and conditions of this Agreement.
7.       ASSIGNMENT BY BANK
         Bank, may from time to time, without notice to Borrower,  sell, assign,
         transfer  or  otherwise  dispose of all or any part of the  Obligations
         and/or the Collateral therefor. In such event, each and every immediate
         and successive purchaser,  assignee, transferee or holder of all or any
         part of the Obligations  and/or the Collateral  shall have the right to
         enforce  this  Agreement,  by legal  action or  otherwise,  for its own
         benefit as fully as if such purchaser,  assignee,  transferee or holder
         were herein by name specifically given such rights.  Bank shall have an
         unimpaired  right to enforce  this  Agreement  for its  benefit to that
         portion of the Obligations as Bank has not sold, assigned,  transferred
         or otherwise disposed of.

================================================================================
8.       WAIVER OF JURY TRIAL
         BORROWER  WAIVES  TRIAL BY JURY AND  CONSENTS TO AND  CONFERS  PERSONAL
         JURISDICTION  ON COURTS OF THE  STATE OF NEW  JERSEY OR OF THE  FEDERAL
         GOVERNMENT,  AND EXPRESSLY  WAIVES ANY OBJECTIONS AS TO VENUE IN ANY OF
         SUCH COURTS, AND AGREES THAT SERVICE OF PROCESS MAY BE MADE ON BORROWER
         BY MAILING A COPY OF THE  SUMMONS TO BORROWER  AT  BORROWER'S  ADDRESS.
         BANK LIKEWISE WAIVES TRIAL BY JURY.
===============================================================================

WITNESS:                       BORROWER     Environmental Waste Management
                                              Associates, L.L.C.


/s/ George Greenberg                        /s/ Lawrence B. Seidman
----------------------------                -----------------------------------
 George Greenberg, Secretary                  Lawrence B. Seidman, President


WITNESS:                                     BORROWER  Integrated Analytical
                                             Laboratories, L.L.C.


/s/ Frank Russomanno                         /s/ Michael Leftin
----------------------------                 -----------------------------------
Frank Russomanno, Secretary                  Michael Leftin, President


ATTEST:                                      BORROWER Environmental Waste
                                             Management Associates, Inc.


/s/ George Greenberg                         /s/ Lawrence B. Seidman
----------------------------                 ----------------------------------
George Greenberg, Secretary                  Lawrence B. Seidman, President


ATTEST:                                      BORROWER  Integrated Analytical
                                             Laboratories, Inc.


/s/ Frank Russomanno                         /s/ Michael Leftin
 ----------------------------                 ----------------------------------
Frank Russomanno, Secretary                   Michael Leftin, President


ATTEST:                                                       SUMMIT BANK


-------------------------------              /s/ John Hemmens
                                             -----------------------------------
Bank Officer Name: __________________________   John Hemmens, Vice President
Bank Officer Title: _________________________
NJMM0501(10/96)
NJCM0501(12/96)