Document:

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                                                                    EXHIBIT 10.6

                              TERMINATION AGREEMENT

         THIS TERMINATION AGREEMENT, dated as of September 24, 2002 (this
"Agreement"), is by and between U.S. Plastic Lumber Corp. (the "Company") and
Halifax Fund L.P. (the "Holder"). Unless otherwise defined herein, capitalized
terms shall have the meanings ascribed thereto in the Exchange and Repurchase
Agreement, dated as of the date hereof (the "Exchange Agreement"), between the
Company and the Holder.

         WHEREAS, it is a condition precedent to the transactions contemplated
by the Exchange Agreement and the other Transaction Documents that the 2000
Purchase Agreement, the 2001 Purchase Agreement, the 2000 Debenture, the 2001
Debenture, the Preferred Shares, the 2000 Registration Rights Agreement and the
2001 Registration Rights Agreement (collectively, the "Existing Instruments")
are terminated and of no further force or effect.

         NOW, THEREFORE, in consideration for the mutual covenants,
representations and warranties made in the Exchange Agreement and the other
Transaction Documents, the Company and the Holder hereby acknowledge and agree
that, effective as of the date hereof, each Existing Instrument is terminated
and of no further force or effect, and neither the Company, the Holder nor any
of their respective officers, directors, partners, subsidiaries, parents, or any
other affiliates shall be entitled to any further payments, fees or other rights
of any kind, or be subject to any further obligations or other liabilities of
any kind, under any of the Existing Instruments; PROVIDED, HOWEVER, that the
indemnification agreements contained in the 2000 Registration Rights Agreement
and the 2001 Registration Rights Agreement, respectively, shall not be affected
by this Termination Agreement, and shall remain in full force and effect. In
furtherance of the foregoing, the Company and the Holder agree that, to the
extent reasonably requested by the other party, the Company or the Holder, as
the case may be, shall, or shall cause its affiliates to, execute and deliver
such acknowledgements and terminations necessary to effectuate the intent of
this Agreement. Notwithstanding the foregoing, nothing contained herein shall be
construed to limit or otherwise affect any party's rights or remedies arising
under, or in connection with the transactions contemplated by, the Exchange
Agreement and the other Transaction Documents.

         THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK.

         None of the terms or provisions of this Agreement may be waived,
altered, modified or amended except by an instrument in writing, duly executed
by each of the parties hereto. This Agreement shall be binding upon each of the
parties hereto, their successors and assigns, and shall inure to the benefit of
the other parties hereto and their successors and assigns.

<PAGE>

         This Agreement, together with the Exchange Agreement and the other
Transaction Documents, constitutes the entire agreement of the parties hereto as
to the subject matter hereof, and all prior agreements or understandings within
the scope of the subject matter of this Agreement are, upon the execution and
delivery of this Agreement, superseded, null and void.

         This Agreement may be executed by one or more of the parties hereto on
any number of separate counterparts and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

         IN WITNESS WHEREOF, each of the undersigned has executed this Agreement
as of the date first above written.

                                            U.S. PLASTIC LUMBER CORP.

                                            By: /s/ Bruce Rosetto
                                               --------------------------------
                                                     Name: Bruce Rosetto
                                                     Title: Secretary

                                            HALIFAX FUND, L.P.

                                            By:  THE PALLADIN GROUP, L.P.,
                                                     Attorney-in-Fact

                                            By: Maurice Hryshko
                                               --------------------------------
                                               Name: Maurice Hryshko
                                               Title: Counsel

                                      -2-<PAGE>
                                                                    EXHIBIT 10.7

                          WAIVER AND RELEASE AGREEMENT

         THIS WAIVER AND RELEASE AGREEMENT, dated as of September 24, 2002 (this
"RELEASE"), is by and between U.S. Plastic Lumber Corp. (the "Company") and
Halifax Fund L.P. (the "Holder"). Unless otherwise defined herein, capitalized
terms shall have the meanings ascribed thereto in the Exchange and Repurchase
Agreement, dated as of the date hereof (the "Exchange Agreement"), between the
Company and the Holder.

         TO ALL WHOM THESE PRESENTS SHALL COME OR MAY CONCERN, KNOW THAT EACH OF
THE UNDERSIGNED, in consideration of the sum of Ten Dollars ($10), a reciprocal
release and other good and valuable consideration received from each other party
hereto, the receipt and sufficiency of which are hereby acknowledged, having
been represented by counsel and having been fully and adequately informed as to
the facts, consequences and circumstances surrounding this RELEASE, and
representing and warranting that the claims, causes of actions and other rights
set forth below and which are the subject of this RELEASE have not heretofore
been assigned or otherwise transferred to any other person, hereby releases and
discharges, individually and collectively, one another, and their respective
present and former officers, directors, shareholders, agents, employees,
servants, affiliates, subsidiaries, general and/or limited partners (and their
respective general and/or limited partners), attorneys, representatives and
management companies and (to the maximum extent applicable) the respective
officers, directors, shareholders, agents, employees, servants, affiliates,
subsidiaries, general and/or limited partners (and their respective general
and/or limited partners), attorneys, representatives and management companies of
each of the foregoing, and each person who controls any of the foregoing, as
well as their respective successors and assigns, from and against any and all
actions, causes of action, suits, debts (including without limitation default
payments, fees and penalties), dues, sums of money, obligations, accounts,
reckonings, bonds, bills, specialties, covenants, contracts, controversies,
agreements, promises, variances, trespasses, damages, judgments, extents,
executions, claims, liabilities, rights and demands whatsoever, of whatever kind
or nature, in contract or in tort, in law or equity, known or unknown, which
such releasing party or any party claiming by or through such releasing party
ever had, now have or hereafter can, shall or may have for, upon or by reason of
any matter, cause or thing whatsoever, from the beginning of the world to the
date hereof which are based upon, arise under or are related to, subject to the
Existing Instruments other than actions or claims (i) arising under the
indemnification agreements contained in the 2000 Registration Rights Agreement
and the 2001 Registration Rights Agreement, respectively, and (ii) that result
from the willful misconduct of the other party. Notwithstanding the foregoing,
nothing contained herein shall be construed to limit or otherwise affect any
party's rights or remedies arising under, or in connection with the transactions
contemplated by, the Exchange Agreement and the other Transaction Documents;
PROVIDED, HOWEVER, that the Holder acknowledges that the Company has fulfilled
its obligation under Section 5.18 of the Exchange Agreement.
<PAGE>

         THIS RELEASE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

         None of the terms or provisions of this RELEASE may be waived, altered,
modified or amended except by an instrument in writing, duly executed by each of
the parties hereto. This RELEASE shall be binding upon each of the parties
hereto, their successors and assigns, and shall inure to the benefit of the
other parties hereto and their successors and assigns.

         Each party hereto expressly waives any and all rights under any
applicable statute, doctrine or principle of law restricting the right of any
person to release claims which such person does not know or suspect to exist at
the time of executing a release, which claims, if known, may have materially
affected such person's decision to give such a release. In connection with such
waiver and relinquishment, each party hereto acknowledges that they are aware
that they may hereafter discover claims presently unknown or unsuspected, or
facts in addition to or different from those which they now know or believe to
be true, with respect to the matters released herein. Nevertheless, it is the
intention of each party hereto to fully, finally and forever settle and release
all such matters, and all claims relative thereto which now exist, may exist or
theretofore have existed between and among the parties hereto, described above,
as specifically provided herein.

         The provisions of this RELEASE may be pleaded as a full and complete
defense to, and may be used as the basis for an injunction against, any action,
suit or other proceeding that may be instituted, prosecuted or attempted in
breach thereof.

         This RELEASE, together with the Exchange Agreement and the other
Transaction Documents, constitutes the entire agreement of the parties hereto as
to the subject matter hereof. Each of the undersigned acknowledges that there
are no communications or oral understandings contrary, different or which in any
way restrict the full, complete and general release and discharge intended
hereby, and that all prior agreements or understandings within the scope of the
subject matter of the RELEASE are, upon the execution and delivery of this
RELEASE, superseded, null and void.

         This RELEASE may be executed by one or more of the parties hereto on
any number of separate counterparts and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

         The effectiveness of this RELEASE is expressly conditioned upon the
consummation of the Closing in accordance with the terms of the Exchange
Agreement.

                                      -2-
<PAGE>

         IN WITNESS WHEREOF, each of the undersigned has executed this RELEASE
as of the day and year first above written.

                                           U.S. PLASTIC LUMBER CORP.

                                            By: /s/ Bruce Rosetto
                                               --------------------------------
                                                     Name: Bruce Rosetto
                                                     Title: Secretary

                                           HALIFAX FUND, L.P.

                                           By:  THE PALLADIN GROUP, L.P.,
                                                    Attorney-in-Fact

                                           By: /s/ Maurice Hryshko
                                              ----------------------------------
                                              Name: Maurice Hryshko
                                              Title: Counsel

                                      -3-

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