Exhibit 10.32


                                LOCK-UP AGREEMENT

     AGREEMENT, by and between IDM ENVIRONMENTAL CORP., a New Jersey corporation
(the  "Company"),  and the  undersigned  holders of warrants of the Company (the
"Holders").

                              W I T N E S S E T H :

     WHEREAS,  the Company  previously  sold to the Holders  certain  Promissory
Notes (the "Prior Notes") and Warrants (the "$3.00 Warrants");

     WHEREAS,  the Company  desires to secure the  commitment  of the Holders to
"lock-up"  the shares  issuable in  connection  with the $3.00  Warrants for the
period described herein;

     WHEREAS,  the  Holders are willing  and able to  "lock-up"  the  underlying
shares of common stock in exchange for the issuance to the Holders of the number
of new warrants (the "Lock-Up Warrants") set forth herein.

     NOW, THEREFORE,  in consideration of the foregoing and the mutual covenants
and promises herein, the parties hereto agree as follows:

          1. Lock-Up of Warrant  Shares.  The Holders  agree that they will not,
     without the prior written consent of the Company,  sell, assign,  transfer,
     pledge,  hypothecate  or  otherwise  dispose of any of the shares of common
     stock  underlying the $3.00  Warrants (the "Warrant  Shares") prior to July
     30,  1998  (the  "Lock-Up  Period").  In order  to  enforce  the  "lock-up"
     requirement  under this paragraph 1, the Warrant Shares shall bear a legend
     indicating that the Warrant Shares may not be sold, assigned,  transferred,
     pledged, hypothecated or otherwise disposed of before July 30, 1998 without
     the prior written consent of the Company.

          2.  Issuance  of New  Warrants to Holders.  As  consideration  for the
     Holders' "lock-up" agreement pursuant to paragraph 1, the Company agrees to
     issue to the Holders an  aggregate  of  1,270,000  warrants  (the  "Lock-Up
     Warrants")  which shall be  substantially  in the form  attached  hereto as
     Exhibit A. The Lock-Up  Warrants shall be allocated among and issued to the
     Holders in the numbers set forth on the signature page.

          3.  Registration   Rights.  (a)  The  Company  will  use  commercially
     reasonable efforts to cause a registration statement (the "New Registration
     Statement")  covering the resale of the shares of common  stock  underlying
     the Lock-Up  Warrants (the "Lock-Up  Warrant  Shares") to be filed with the
     Securities  and  Exchange  Commission  no later  than April 17,  1998.  The
     Company  will  use  commercially   reasonable  efforts  to  cause  the  New
     Registration  Statement  to  remain  effective  for  three  years.  The New
     Registration  Statement shall be accompanied by blue sky clearances in such
     states as Holders may reasonably request.

<PAGE>


               (b) The Company  shall pay all  expenses in  connection  with the
          preparation and filing of the New Registration  Statement,  other than
          the  Holders'  underwriting  discounts,  legal  fees and  other  costs
          incurred by the Holders on a voluntary basis.

               (c) The Company  shall supply to the Holders a reasonable  number
          of copies of the New  Registration  Statement,  prospectuses and other
          related materials prepared by the Company. The Company and the Holders
          shall execute and deliver to each other indemnity agreements which are
          conventional in registered offerings of the nature  contemplated.  The
          Holders shall reasonably cooperate with the Company in the preparation
          and  filing  of  the  New   Registration   Statement  and  appropriate
          amendments thereto.

               (d) Holders may transfer a proportionate part of its registration
          rights to a limited  number of  permitted  transferees  of the Lock-Up
          Warrants or portions thereof. A "permitted  transferee" is a person to
          whom a transfer is made in compliance with the provisions of paragraph
          4 below.

               (e) Once the New Registration Statement is effective, the Company
          will  issue  UNLEGENDED  shares  of  common  stock  (except  as may be
          required by  paragraph  1 above) on exercise of the Lock-Up  Warrants,
          whether or not such shares are sold simultaneous with such exercise.

               (f)  Should  the  Holders  from time to time or times give to the
          Company  notice  that it has  assigned  the  Lock-Up  Warrants  or any
          portion  thereof,  the Company shall within three business days file a
          supplement to the registration statement to reflect the name(s) of the
          transferee(s) as a selling shareholder(s).

          4. Securities Representations.  (a) Holders represent and warrant that
     they are acquiring the Lock-Up  Warrants solely for investment,  solely for
     their own account and not with a view to or for the resale or  distribution
     thereof except as permitted under the New Registration Statement.

               (b) Holders  understand that they may sell or otherwise  transfer
          the  Lock-Up  Warrants  or the  Lock-Up  Warrant  Shares  only if such
          transaction  is duly  registered  under the Securities Act of 1933, as
          amended  (the "1933  Act"),  under the New  Registration  Statement or
          otherwise,  or if Holder shall have received the favorable  opinion of
          counsel to the Holder, which opinion shall be reasonably  satisfactory
          to  counsel  to the  Company,  to the  effect  that such sale or other
          transfer may be made in the absence of registration under the 1933 Act
          and registration or qualification in every applicable  state.  Subject
          to  the   provisions  of  paragraph  3(e)  above,   the   certificates
          representing  the  aforesaid  securities  will be  legended to reflect
          these restrictions,  and stop transfer instructions will apply. Holder
          realizes that the Lock-Up Warrants and, prior to the  effectiveness of
          the New  Registration  Statement,  the Lock-Up  Warrant Shares are not
          liquid investments.

<PAGE>


               (c) Holders  have had the  opportunity  to discuss the  Company's
          affairs  with the  Company's  officers  and to  review  the  Company's
          filings   with   the   Securities   and   Exchange   Commission   (the
          "Commission"),   including   the  currently   effective   registration
          statement  on Form S-3 (the "Prior  Registration  Statement")  and the
          Commission's  accounting  comments relating to the Prior  Registration
          Statement.

               (d)  Holders  have not  relied  upon  the  advice  of  "Purchaser
          Representatives"  (as  defined  in  Regulation  D of the 1933  Act) in
          evaluating the risks and merits of this  investment.  Holders have the
          knowledge  and  experience  to evaluate  the Company and the risks and
          merits relating thereto.

               (e)  Holders  represent  and  warrant  that they are  "accredited
          investors"  as  such  term is  defined  in Rule  501 of  Regulation  D
          promulgated pursuant to the 1933 Act. Holders acknowledge that Holders
          are  able  to  bear  the  economic  risk  of  losing  Holder's  entire
          investment in the Warrant  Shares and the Lock-Up  Warrant  Shares and
          understands  that an  investment in the Company  involves  substantial
          risks;  Holders  have the  power  and  authority  to enter  into  this
          agreement,  and the execution and delivery of, and performance  under,
          this agreement shall not conflict with any rule, regulation,  judgment
          or agreement  applicable to the Holders;  and Holders have invested in
          previous transactions involving restricted securities.

          5. Prior  Agreements  Confirmed.  The Company and the Holders  confirm
     their  obligations  under the agreements  dated August 13, 1997 pursuant to
     which the Company issued the $3.00 Warrants.

          6. Legal Fees.  The Company,  upon  execution of this Agreement by all
     parties,  shall pay legal fees in the amount of $15,000 to Oscar D. Folger,
     counsel to the Holders.

          7. Miscellaneous.  (a) This Agreement may not be changed or terminated
     except by written agreement among the parties hereto.

               (b) This Agreement  shall be binding on the parties hereto and on
          their personal representatives and permitted assigns.

               (c) This  Agreement  contains  the entire  agreement  between the
          parties   hereto  with  respect  to  the  subject  matter  hereof  and
          supersedes  all  prior  arrangements  or  understandings  between  the
          parties with respect thereto.

               (d) This  Agreement  shall be  enforceable by decrees of specific
          performance  (without  posting  bond or other  security) as well as by
          other available remedies.

<PAGE>


               (e) This  Agreement  shall  be  governed  by,  and  construed  in
          accordance with, the laws of the State of New Jersey.  The federal and
          state  courts  sitting  in the City of Newark,  New Jersey  shall have
          exclusive  jurisdiction  over all matters  relating to this Agreement.
          Trial by jury is expressly waived.

               (f) All  notices,  requests,  service of process,  consents,  and
          other  communications  under this  Agreement  shall be in writing  and
          shall be  deemed  to have been  delivered  (i) on the date  personally
          delivered,  or  (ii)  one day  after  properly  sent  by a  recognized
          national  overnight  courier  service,  addressed  to  the  respective
          parties  at their  address  set forth on the  signature  page for each
          Holder and  addressed to the Company at 396  Whitehead  Avenue,  South
          River, New Jersey 08882,  Attn: Chief Financial  Officer,  facsimile #
          (732)  390-9545,  or (iii) on the day transmitted by facsimile so long
          as a  confirmation  copy is  simultaneously  forwarded by a recognized
          national  overnight  courier  service,  in each case  addressed to the
          respective  parties  at their  address  set  forth in this  Agreement.
          Either party may  designate a different  address by providing  written
          notice of such new  address  to the  other  party  hereto as  provided
          above.

               (g) Each party hereto shall be  responsible  for its own expenses
          with regard to the negotiation and execution of this Agreement.

               (h) The Company may waive, in writing,  the lock-up  requirements
          of  paragraph 1 with  respect to part or all of the Warrant  Shares on
          any one or more  occasions.  Any such waiver shall be binding upon the
          Company but shall not be  construed  as a waiver of any other  lock-up
          requirements or other  provisions of this Agreement  unless  expressly
          provided for in writing.

               (i) If one or more of the  provisions  contained  herein  for any
          reason shall be held to be invalid,  illegal or  unenforceable  in any
          respect,  such invalidity,  illegality or  unenforceability  shall not
          affect  any  other  provisions  hereof,  and this  Agreement  shall be
          construed as if such invalid,  illegal or unenforceable  provision had
          never been contained herein.

     IN WITNESS WHEREOF,  the parties hereto have executed this Agreement on the
day and date set forth below.

Dated:                                  IDM ENVIRONMENTAL CORP.
     -----------, 1998

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


HOLDER:


Name:                                   No. of $3.00 Warrants:
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Address:                                No. of Lock-up Warrants:
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Fax No.                                 Signature:
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