Document:

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                                                                    Exhibit 10.7
                               SECURITY AGREEMENT

                  This Security Agreement is entered into as of December 19,
2002, by and between U.S. Plastic Lumber IP Corporation, a Delaware corporation
("Debtor"), with an address for notices at 2300 Glades Road, Suite 4400, Boca
Raton, Florida 33486, and GUARANTY BUSINESS CREDIT CORPORATION ("Secured
Party"), located at 333 South Grand Avenue, Suite 1650, Los Angeles, California
90071.

                  1. Grant of Security Interest. Debtor hereby grants to Secured
Party a continuing lien on and security interest in the property described or
referred to in Paragraph 2 below (collectively, the "Collateral") to secure
prompt payment and full performance of the liabilities described in Paragraph 3
below (collectively, the "Liabilities").

                  2. Collateral. The Collateral consists of all personal
property and assets now or hereafter owned by Debtor or in which Debtor
otherwise has any rights, whether now existing or hereafter arising, including
but not limited to the following: (a) all accounts, contract rights and general
intangibles, receivables and claims of Debtor whether now or hereafter arising,
all guaranties and security therefor and all of Debtor's right, title and
interest in the goods purchased and represented thereby including all of
Debtor's rights in and to returned goods and rights of stoppage in transit,
replevin and reclamation as unpaid vendor; (b) all chattel paper including
electronic chattel paper and tangible chattel paper; (c) all documents and
instruments; (d) all letters of credit and letter-of-credit rights; (e) all
supporting obligations; (f) all deposit accounts; (g) all investment property
and financial assets; (h) all inventory and all accessions thereto and products
thereof and documents therefor; (i) all furniture, fixtures, equipment and
machinery, wherever located and whether now or hereafter existing, and all parts
thereof, accessions thereto, and replacements therefor and all documents and
general intangibles covering or relating thereto; (j) all trademarks, trade
names, corporate names, company names, business names, fictitious business
names, trade styles, service marks, logos and any other designs or sources of
business identifiers, indicia of origin or similar devices, all registrations
with respect thereto, all applications with respect to the foregoing, and all
extensions and renewals with respect to any of the foregoing, together with all
of the goodwill associated therewith, in each case whether now or hereafter
existing, and all rights and interest associated with the foregoing; (k) all
copyrights, and all copyrights of works based on, incorporated in, derived from
or relating to works covered by such copyrights, and all right, title and
interest to make and exploit all derivative works based on or adopted from works
covered by such copyrights, all registrations with respect thereto, all
applications with respect to the foregoing, and all extensions and renewals with
respect to any of the foregoing, together with all rights and interests
associated with the foregoing; (l) all patents, patent applications, and
patentable inventions, all continuations, divisions, renewals, extensions,
modifications, substitutions, continuations-in-part, or reissues of any of the
foregoing, the right to sue for past, present, and future infringements of any
of the foregoing, all income, royalties, profits, damages, awards, and payments
relating to or payable under any of the foregoing, and all other rights and
benefits relating to any of the foregoing throughout the world; (m) all general
intangibles; (n) all books and records pertaining to the foregoing, including
but not limited to computer programs, data, certificates, records, circulation
lists, subscriber lists, advertiser lists, supplier lists, customer lists,
customer and supplier contracts, sales orders, and purchasing records; (o) all
software including but not limited to computer programs and supporting
information provided in connection with a transaction relating to the program,
and computer
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programs embedded in goods and any supporting information provided in connection
with a transaction relating to the program whether or not the program is
associated with the goods in such a manner that it customarily is considered
part of the goods, and whether or not, by becoming owner of the goods, a person
acquires a right to use the program in connection with the goods, and whether or
not the program is embedded in goods that consist solely of the medium in which
the program is embedded; (p) all health care insurance receivables; (q) all
commercial tort claims; and (r) all proceeds of the foregoing, including without
limitation proceeds of insurance policies.

                  3. Liabilities. The liabilities ("Liabilities") secured under
this Security Agreement are all obligations of Debtor to Secured Party pursuant
to (i) that certain Secured Continuing Corporate Guaranty of even date herewith
(as amended, restated, supplemented or modified from time to time, the
"Guaranty") pursuant to which Debtor guarantied any and all of the obligations
of U.S. Plastic Lumber Ltd., a Delaware corporation ("Borrower") to Secured
Party, including, without limitation, under that certain Loan and Security
Agreement of even date herewith by and between Borrower and Secured Party and
any and all amendments, replacements, modifications and supplements thereto (the
"Loan Agreement") and (ii) this Security Agreement.

                  4.       Covenants of Debtor. Until the Liabilities are paid
in full, Debtor agrees that it shall:

                           (a) not sell or otherwise dispose of the Collateral;

                           (b) not create, incur, assume or permit to exist any
liens, encumbrances, security interests, levies, assessments or charges
(collectively, "Liens") on or in any of the Collateral other than Permitted
Encumbrances (as defined in the Loan Agreement), without Secured Party's
consent;

                           (c) appear in and defend, at Debtor's own expense,
any action or proceeding which may affect Debtor's title to or Secured Party's
interest in the Collateral;

                           (d) procure or execute and deliver, from time to
time, in form and substance satisfactory to Secured Party in its discretion
reasonably exercised, any endorsements, assignments, financing statements or
other writings deemed necessary or appropriate by Secured Party to perfect,
maintain or protect Secured Party's security interest in the Collateral and the
priority thereof, and take such other action and deliver such other documents,
instruments and agreements pertaining to the Collateral as Secured Party may
reasonably request to effectuate the intent of this Security Agreement;

                           (e) notify Secured Party in writing at least thirty
(30) days prior to any change in Debtor's name, identity or business structure,
or any addition or change to the address of the chief executive office or
principal place of business of Debtor specified in the introductory paragraph
hereof;

                           (f) keep separate, accurate and complete records of
the Collateral and provide Secured Party during normal business hours with
access thereto upon reasonable notice

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if no Event of Default exists (and without notice if an Event of Default exists)
and to Debtor's financial records, in each case with the right to make extracts
therefrom;

                           (g) provide Secured Party during normal business
hours with access to the Collateral, and with such other information as Secured
Party may reasonably request from time to time;

                           (h) maintain and preserve its existence, and all
rights, privileges, franchises and other authority necessary for the conduct of
its business; and

                           (i) continue operations in the same form and
structure of business as currently conducted, and not (x) merge or consolidate
with or acquire or be acquired by any other corporation, partnership, entity or
person or (y) incorporate in another jurisdiction, without Secured Party's prior
written consent.

                  5. Authorized Action By Secured Party. (a) After the
occurrence and during the continuance of any "Event of Default" (as defined
below), Debtor hereby irrevocably appoints Secured Party as its attorney-in-fact
to do (but Secured Party shall not be obligated to and shall not incur any
liability to Debtor or any third party for failure so to do) any act which
Debtor is obligated by this Security Agreement to do, and to exercise such
rights and powers as Debtor might exercise with respect to the Collateral,
including, without limitation, the right to:

                           (i)      collect by legal proceedings or otherwise
         and endorse, receive and receipt for all payments, proceeds and other
         sums and property now or hereafter payable on or on account of the
         Collateral;

                           (ii) enter into any extension, deposit or other
         agreement pertaining to, or deposit, surrender, accept, hold or apply
         other property in exchange for, the Collateral;

                           (iii)    process and preserve the Collateral; and

                           (iv) make any reasonable compromise, settlement or
         adjustment, and take any action it deems advisable, with respect to the
         Collateral upon five Business Days' prior written notice to Debtor.

                           (b) Debtor agrees to reimburse Secured Party upon
demand for any reasonable costs and expenses, including reasonable attorneys'
fees, Secured Party may incur while acting as Debtor's attorney-in-fact
hereunder, all of which costs and expenses are included in the Liabilities
secured hereby and are payable upon demand, with interest thereon at the rate
then applicable to the obligations of Borrower to Secured Party pursuant to the
terms of the Loan Agreement.

                           (c) It is further agreed and understood between the
parties hereto that such care as Secured Party gives to the safekeeping of its
own property of like kind shall constitute reasonable care of the Collateral
when in Secured Party's possession; provided, however, that Secured Party shall
not be required to make any presentment, demand or protest, or give any notice
and need not take any action to preserve any rights against any prior party or
any other person in connection with the Liabilities or with respect to the
Collateral.

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                           (d) Whether or not Debtor is in default, Debtor
agrees that Secured Party may at any time send verification requests to account
debtors, and so long as an Event of Default has not occurred, such requests will
not identify Secured Party to any account debtor on any Collateral.

                           (e) If Debtor's records are prepared or retained by a
computer service company or any accountant or accounting service, so long as any
Liabilities are outstanding, Debtor grants Secured Party the absolute and
irrevocable right, with reasonable notice to Debtor, to inspect such records
(including Debtor's internal work papers), receive duplicate copies of all
information furnished to Debtor and prepared by such company, accountant or
accounting service, and agrees to furnish such consents as may be necessary to
effectuate the same. Debtor further agrees to promptly notify Secured Party of
the name and address of such company, accountant or accounting service and of
any change in respect thereof.

                           (f) All the foregoing powers authorized herein, being
coupled with an interest, are irrevocable so long as any Liabilities are
outstanding.

                  6.       Default. The occurrence of any of the following
events or conditions (herein "Events of Default") shall constitute an Event of
Default hereunder:

                           (a) breach, violation or nonperformance of any
covenant on Debtor's part hereunder or under the Guaranty;

                           (b) non-payment of any of the Liabilities as and when
due and payable to Secured Party after giving of any required notice and
expiration of any applicable grace period;

                           (c) any bankruptcy or other insolvency proceeding is
commenced by Debtor, or any such proceeding is commenced against Debtor; or

                           (d) any Event of Default under and as defined in the
Loan Agreement.

                  Any Event of Default that shall have occurred hereunder or
under the Loan Agreement at any time shall be deemed continuing unless such
Event of Default is (i) cured, provided that an Event of Default may only be
cured within the time-frame and only if so expressly permitted under the terms
of this Agreement or the Loan Agreement, as applicable or (ii) waived in writing
by GBCC.

                  7. Remedies. Upon the occurrence and during the continuation
of any Event of Default, Secured Party may, at its option, with prompt
subsequent notice but without demand on Debtor, declare all Liabilities
immediately due and payable, and Secured Party shall have all the default rights
and remedies of a secured party under division 9 of the California Uniform
Commercial Code (the "UCC") and other applicable law as well as the following
rights and remedies, all of which may be exercised with or without further
notice to Debtor other than notices which Debtor is not permitted to waive under
the UCC):

                           (a) to the extent permitted by law, to notify any and
all obligors and account debtors on the Collateral that the same has been
assigned to Secured Party and that all payments thereon are to be made directly
to Secured Party;

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                           (b) to settle, compromise or release, on terms
reasonably acceptable to Secured Party, in whole or in part, any amounts owing
on the Collateral, and to extend the time of payment, make allowances and
adjustments and to issue credits in Secured Party's name or in the name of
Debtor in respect thereof;

                           (c) to enter any premises where any Collateral may be
located and to take possession of and remove the Collateral, with or without
judicial process;

                           (d) to sell or otherwise dispose of the Collateral or
any part thereof, for cash, on credit or otherwise, with or without
representations or warranties, and upon such terms as shall be acceptable to
Secured Party;

                           (e) to remove from any premises where the same may be
located, any and all documents, instruments, files and records relating to the
collateral (provided, that Secured Party agrees to (x) give receipts for such
items to Debtor and (y) use the same standard of care for such documents,
instruments files and records as Secured Party would use for its own property of
a similar nature; provided further, that Secured Party shall incur no liability
with respect to the foregoing subparagraphs (x) and (y) except in the case of
its gross negligence or willful misconduct), and Secured Party may, at Debtor's
expense, use the supplies and space of Debtor at its places of business as may
be necessary to properly administer and control the Collateral or the handling
of collections and realizations thereon;

                           (f) receive, open and forward any mail addressed to
Debtor or its Affiliates (as defined in the Loan Agreement); and if GBCC is
collecting the Accounts (as defined in the Loan Agreement) directly, put GBCC's
address on any statements mailed to the applicable Account Debtors (as defined
in the Loan Agreement); and

                           (g) take or bring, in Secured Party's name or in the
name of Debtor, all steps, actions, suits or proceedings deemed by Secured Party
necessary or desirable to effect collection of or to realize upon the
Collateral;

all at Secured Party's sole option and as Secured Party in its sole discretion
may deem advisable.

                  8. Application of Proceeds of Collateral. The net cash
proceeds resulting from the collection, liquidation, sale or other disposition
of the Collateral shall be applied first to the expenses (including all
reasonable attorneys' fees) of retaking, holding, processing and preparing for
sale, selling, collecting, liquidating and the like, and then to the
satisfaction of all Liabilities secured hereby, application as to any particular
obligation or indebtedness or against principal or interest to be in Secured
Party's discretion. Debtor shall be liable to Secured Party and shall pay to
Secured Party on demand any deficiency which may remain after such sale,
disposition, collection or liquidation of Collateral.

                  9.       Cumulative Rights. The rights, powers and remedies of
Secured Party under this Security Agreement shall be in addition to all rights,
powers and remedies given to Secured Party under any statute or rule of law or
any other document, instrument or agreement, all of

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which rights, powers and remedies shall be cumulative and may be exercised
successively or concurrently.

                  10. Waiver. Any forbearance, failure or delay by Secured Party
in exercising any right, power or remedy shall not preclude the further exercise
thereof, and every right, power or remedy of Secured Party shall continue in
full force and effect until such right, power or remedy is specifically waived
in a writing executed by Secured Party. Debtor waives any right to require
Secured Party to proceed against any person or to exhaust any Collateral or to
pursue any remedy in Secured Party's power prior to pursuing Debtor in respect
of the Liabilities.

                  11.      Setoff. Debtor agrees that Secured Party may exercise
its rights of setoff with respect to the Liabilities in the same manner as if
the Liabilities were unsecured upon the occurrence and during the continuance of
an Event of Default.

                  12. Binding Upon Successors. All rights of Secured Party under
this Security Agreement shall inure to the benefit of its successors and
assigns, and all obligations of Debtor shall bind the representatives,
executors, administrators, heirs, successors and assigns of the Debtor; provided
that Debtor may not transfer or assign its obligations hereunder without the
prior written consent of the Secured Party. Any transfer or assignment by Debtor
in violation of the foregoing shall be null and void.

                  13. Entire Agreement; Severability. This Security Agreement
contains the entire security agreement between Secured Party and Debtor with
respect to the Collateral. If any of the provisions of this Security Agreement
shall be held invalid or unenforceable, this Security Agreement shall be
construed as if not containing those provisions and the rights and obligations
of the parties hereto shall be construed and enforced accordingly.

                  14.      References. The captions or titles of the paragraphs
of this Security Agreement are for convenience of reference only and shall not
define or limit the provisions hereof.

                  15. Choice of Law. This Security Agreement shall be construed
in accordance with and governed by the laws of the State of California, and,
where applicable and except as otherwise defined herein, terms used herein shall
have the meanings given them in the California Uniform Commercial Code. DEBTOR
IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF THE SUPERIOR
COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF LOS ANGELES OR THE UNITED
STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA, AS SECURED PARTY
MAY DEEM APPROPRIATE, OR IF REQUIRED, THE MUNICIPAL COURT OF THE STATE OF
CALIFORNIA FOR THE COUNTY OF LOS ANGELES IN CONNECTION WITH ANY LEGAL ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT, AND DEBTOR
WAIVES ANY OBJECTION RELATING TO THE BASIS FOR PERSONAL OR IN REM JURISDICTION
OR TO VENUE WHICH IT MAY NOW OR HEREAFTER HAVE IN ANY SUCH SUIT, ACTION OR
PROCEEDING. BOTH DEBTOR AND SECURED PARTY WAIVE ANY RIGHT TO TRIAL BY JURY TO
THE EXTENT PERMITTED BY LAW.

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                  16. Attorneys' Fees. If any legal action or proceeding shall
be commenced at any time by any party to this Security Agreement in connection
with the interpretation of this Security Agreement or the enforcement of any
rights or remedies hereunder, the prevailing party or parties in such action or
proceeding shall be entitled to reimbursement of its reasonable attorneys' fees
and costs in connection therewith, in addition to all other relief to which the
prevailing party or parties may be entitled.

                  17.      Notice. Any written notice, consent or other
communication provided for in this Security Agreement shall be given and deemed
received as provided in the Guaranty.

                  18.      Counterparts. This Security Agreement may be executed
in any number of counterparts, and by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument.

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                  The undersigned have entered into this Security Agreement as
of the date first above written.

SECURED PARTY:                             DEBTOR:

GUARANTY BUSINESS CREDIT                   U.S. PLASTIC LUMBER IP
CORPORATION                                CORPORATION

By /s/ Ronald S. Montgomery                By /s/ Bruce C. Rosetto
  --------------------------------           --------------------------------
Name: Ronald S. Montgomery                 Name: Bruce C. Rosetto
Its   Senior Vice President                Its   President and Secretary<PAGE>
                                                                    Exhibit 10.8
                               SECURITY AGREEMENT
                             (INTELLECTUAL PROPERTY)

                  This SECURITY AGREEMENT (INTELLECTUAL PROPERTY) ("Security
Agreement"), dated as of December 19, 2002, is executed by U.S. PLASTIC LUMBER
IP CORPORATION ("USPL IP"), in favor of GUARANTY BUSINESS CREDIT CORPORATION
("Lender").

                                    RECITALS

                  WHEREAS, pursuant to a Loan and Security Agreement dated as of
the date hereof (the "Loan Agreement") among U.S. Plastic Lumber Ltd.
("Borrower") and Lender, Lender has agreed to extend certain credit facilities
to Borrower upon the terms and subject to the conditions set forth therein.

                  WHEREAS, as a condition to Lender entering into the Loan
Agreement, USPL IP has agreed to enter into that certain Secured Continuing
Corporate Guaranty (the "Guaranty") dated as of the date hereof.

                  WHEREAS, Lender's obligations to extend the credit facilities
to Borrower under the Loan Agreement is subject, among other conditions, to
receipt by Lender of this Security Agreement duly executed by USPL IP.

                                    AGREEMENT

                  NOW, THEREFORE, in consideration of the above recitals and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, USPL IP hereby agrees with Lender as follows:

                  1.       Definitions and Interpretation. When used in this
Security Agreement, the following terms shall have the following respective
meanings:

                           "Collateral" shall have the meaning given to that
         term in Paragraph 2 hereof.

                           "Copyright Office" shall mean the United States
         Copyright Office or any successor office or agency thereto.

                           "Copyrights" shall have the meaning given to that
         term in Attachment I hereto and any other copyrights, now existing or
         hereafter arising.

                           "Mask Works" shall have the meaning given to that
         term in Attachment I hereto.

                           "Obligations" shall mean Liabilities of USPL IP as
         such term is defined in the Guaranty.
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                           "Patent and Trademark Office" shall mean the United
         States Patent and Trademark Office or any successor office or agency
         thereto.

                           "Patent Applications" means and refers to all
         applications made by, or on behalf of, USPL IP to the Patent and
         Trademark Office or to any similar office or agency of any foreign
         country or political subdivision thereof for the registration of
         Patents.

                           "Patent Registrations" means and refers to all
         Patents registered with the Patent and Trademark Office or with any
         similar office or agency of any foreign country or political
         subdivision thereof and all Patent Applications.

                           "Patents" shall have the meaning given to that term
         in Attachment I hereto.

                           "Trade Secrets" shall have the meaning given to that
         term in Attachment I hereto.

                           "Trademarks" shall have the meaning given to that
         term in Attachment I hereto.

                           "UCC" shall mean the Uniform Commercial Code as in
         effect in the State of California from time to time.

Unless otherwise defined herein, all other capitalized terms used herein and
defined in the Loan Agreement shall have the respective meanings given to those
terms in the Loan Agreement, and all terms defined in the UCC shall have the
respective meanings given to those terms in the UCC.

                  2.       Grant of Security Interest.

                           (a)      As security for the Obligations, USPL IP
hereby pledges and grants to Lender a security interest in all right, title and
interest of USPL IP in and to the property described in Attachment I annexed
hereto (collectively and severally, the "Collateral"), which Attachment I is
incorporated herein by this reference.

                           (b)      Any collateral assignment, transfer and
conveyance of any Trademark to Lender shall be deemed to have occurred with a
contemporaneous collateral assignment, transfer and conveyance to Lender of the
goodwill, business and/or means of production, associated with the goods
produced or sold or the services rendered in connection with such Trademark.

                  3.       Representations and Warranties. USPL IP represents
and warrants to Lender that:

                           (a)      USPL IP is the owner of the Collateral (or,
in the case of after-acquired Collateral, at the time USPL IP acquires rights in
the Collateral, will be the owner thereof) and that no other Person has (or, in
the case of after-acquired Collateral, at the time

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USPL IP acquires rights therein, will have) any right, title, claim or interest
(by way of Lien or otherwise) in, against or to the Collateral other than the
holders of Permitted Encumbrances;

                           (b)      Lender has (or in the case of after-acquired
Collateral, at the time USPL IP acquires rights therein, will have) a first
priority perfected security interest in the Collateral;

                           (c)      USPL IP has full corporate power and
authority to make the conditional assignment and to grant the security interest
herein granted;

                           (d)      USPL IP does not own any Patents,
Trademarks, Copyrights or Mask Works registered in, or the subject of pending
applications in, the Patent and Trademark Office or the Copyright Office or any
similar offices or agencies in any other country or any political subdivision
thereof, other than those described in Schedules A - F to Attachment I hereto;

                           (e)      USPL IP has:

                                    (i)      the sole, full and unencumbered
         right, title and interest in and to the Trademarks shown on Schedule A
         to Attachment I (subject to Permitted Encumbrances) for the goods and
         services covered by the registrations thereof and such registrations
         are valid and enforceable and in full force and effect;

                                    (ii)     the sole, full and unencumbered
         right, title and interest in and to each of the Patents shown on
         Schedule B to Attachment I (subject to Permitted Encumbrances) and the
         registrations thereof are valid and enforceable and in full force and
         effect;

                                    (iii)    the sole, full and unencumbered
         right, title and interest in and to each of the Copyrights shown on
         Schedule E to Attachment I (subject to Permitted Encumbrances) and
         according to the records of the Copyright Office, each of said
         copyrights is valid and enforceable and in full force and effect;

                                    (iv)     the sole, full and encumbered
         right, title and interest in and to the Mask Works shown on Schedule F
         to Attachment I (subject to Permitted Encumbrances) and according to
         the records of the Copyright Office, each of said Mask Works is valid
         and enforceable and in full force and effect;

                           (f)      There is no claim pending or, to USPL IP's
knowledge, threatened by any third party that any Patents, Trademarks,
Copyrights or Mask Works are invalid or unenforceable or do or may violate the
rights of any Person;

                           (g)      All licenses of Patents, Trademarks,
Copyrights, Mask Works and Trade Secrets which USPL IP has granted to any Person
are set forth in Schedule G to Attachment I hereto;

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                           (h)      All licenses (other than "shrink wrap" or
other licenses to use software which are generally available) of Patents,
Trademarks, Copyrights, Mask Works and Trade Secrets which any Person has
granted to USPL IP are set forth in Schedule H to Attachment I hereto;

                           (i)      USPL IP has no employee who may be
considered the inventor of patentable inventions (invented within the scope of
such employee's employment); and

                           (j)      USPL IP has taken all steps necessary to
protect the secrecy and the validity under applicable law of all material Trade
Secrets.

                  4.       Covenants of USPL IP. USPL IP hereby agrees:

                           (a)      USPL IP will perform all acts and execute
all documents, including, without limitation, any licensor's consents and any
notices of security interest for each relevant type of intellectual property in
forms suitable for filing with the Patent and Trademark Office or the Copyright
Office, as applicable, substantially in the form of Attachment II (appropriately
revised) annexed hereto, that may be necessary or desirable to record, maintain,
preserve, protect and perfect Lender's interest in the Collateral, the Lien
granted to Lender in the Collateral and the first priority of such Lien;

                           (b)      Except to the extent that Lender shall give
its prior written consent,

                                    (i)     USPL IP (either itself or through
         licensees) will continue to use all material Trademarks in connection
         with each and every trademark class of goods or services applicable to
         its current line of products or services as reflected in its current
         catalogs, brochures, price lists or similar materials in order to
         maintain such material Trademarks in full force and effect free from
         any claim of abandonment for nonuse, and USPL IP will not (and will not
         permit any licensee thereof to) do any act or knowingly omit to do any
         act whereby any such material Trademark may become invalidated;

                                    (ii)    USPL IP will not do any act or omit
         to do any act whereby any material Patent Registrations may become
         abandoned or dedicated or the remedies available against potential
         infringers weakened and shall notify Lender immediately if it knows of
         any reason or has reason to know that any such material Patent
         Registration may become abandoned or dedicated;

                                    (iii)   USPL IP will not do any act or omit
         to do any act whereby any material Copyrights or Mask Works may become
         abandoned or dedicated or the remedies available against potential
         infringers weakened and shall notify Lender immediately if it knows of
         any reason or has reason to know that any such material Copyright or
         Mask Work may become abandoned or dedicated; and

                                    (iv)    USPL IP will not assign, sell,
         mortgage, lease, transfer, pledge, hypothecate, grant a security
         interest in or Lien upon, encumber, grant an exclusive license, or
         otherwise dispose of any of the Collateral (other than Permitted

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         Encumbrances), and nothing in this Security Agreement shall be deemed a
         consent by Lender to any such action except as expressly permitted
         herein;

                           (c)      USPL IP will promptly pay Lender for any and
all reasonable costs and expenses which Lender may pay or incur pursuant to the
provisions of this Security Agreement or in enforcing the Obligations, the
Collateral or the security interest granted hereunder, including all filing or
recording fees, court costs, collection charges, travel, and reasonable
attorneys' fees and expenses, all of which together with interest at the highest
rate then payable on the Obligations shall be part of the Obligations and be
payable on demand;

                           (d)      USPL IP will promptly notify Lender upon the
filing, either by USPL IP or through any agent, employee, licensee or designee,
of (i) an application for the registration of any Patent, Trademark, Copyright
or Mask Work with the Patent and Trademark Office or the Copyright Office or any
similar office or agency in any other country or any political subdivision
thereof, (ii) any assignment of any Patent or Trademark, which USPL IP may
acquire from a third party, with the Patent and Trademark Office or any similar
office or agency in any other country or any political subdivision thereof, or
(iii) any assignment of any Copyright or Mask Work, which USPL IP may acquire
from a third party, with the Copyright Office or any similar office or agency in
any other country or any political subdivision thereof. Upon the request of
Lender, USPL IP shall execute and deliver any and all assignments, agreements,
instruments, documents and papers as Lender may request to evidence Lender's
security interest in such Patent, Trademark (and the goodwill and general
intangibles of USPL IP relating thereto or represented thereby), Copyright or
Mask Work, and USPL IP authorizes Lender to amend an original counterpart of the
applicable notice of security interest executed pursuant to Subparagraph 4(a) of
this Security Agreement without first obtaining USPL IP's approval of or
signature to such amendment and to record such assignment with the Patent and
Trademark Office or Copyright Office, as applicable;

                           (e)      USPL IP will keep the Collateral free of all
Liens, except in favor of Lender and Permitted Encumbrances;

                           (f)      USPL IP will take all necessary steps in any
proceeding before the Patent and Trademark Office, the Copyright Office or any
similar office or agency in any other country or any political subdivision
thereof, to diligently prosecute or maintain, as applicable, each application
and registration of all material Patents, Trademarks, Copyrights and Mask Works,
including filing of renewals, affidavits of use, affidavits of incontestability
and opposition, interference and cancellation proceedings (except to the extent
that dedication, abandonment or invalidation is permitted hereunder);

                           (g)      During the term of the Loan Agreement, USPL
IP shall (i) make application to the Patent and Trademark Office (and
collaterally assign such application to Lender as security) to register any
material unpatented but patentable inventions developed by USPL IP or its
employees (within the scope of their employment), unless USPL IP, in the
exercise of its prudent business judgment, deems any such Patent not to have any
significant commercial value or determines that its rights thereunder are better
preserved as a Trade Secret;

                                       5
<PAGE>
(ii) make application to the Patent and Trademark Office to register any
registerable but unregistered material Trademarks used by USPL IP in connection
with its products or services; and (iii) make application to the Copyright
Office to register any material unregistered Copyright or Mask Work to which
USPL IP has rights;

                           (h)      USPL IP shall (i) use proper statutory
notice in connection with its use of all material Patents, Trademarks,
Copyrights and Mask Works, (ii) maintain consistent standards of quality in its
manufacture of products sold under all material Trademarks or provision of
services in connection with such material Trademarks, and (iii) take all steps
necessary to protect the secrecy and the validity under applicable law of all
material Trade Secrets;

                           (i)      USPL IP agrees that if it learns of any use
by any Person of any term or design likely to cause confusion with any material
Trademark, USPL IP shall promptly notify Lender of such use and of all steps
taken and to be taken to remedy any infringement of any such Trademark;

                           (j)      USPL IP shall maintain with each employee
who may have access to the Trade Secrets of USPL IP an agreement by which such
employee agrees not to disclose such Trade Secrets and with each employee who
may be the inventor of patentable inventions (invented within the scope of such
employee's employment) an invention assignment agreement requiring such employee
to assign all rights to such inventions, including patents and patent
applications, to USPL IP and further requiring such employee to cooperate fully
with USPL IP, its successors in interest, including Lender, and their counsel,
in the prosecution of any patent application or in any litigation involving the
invention, whether such cooperation is required during such employee's
employment with USPL IP or after the termination of such employment;

                           (k)      USPL IP shall at all times keep at least one
complete set of its records concerning the Collateral at its chief executive
office and shall make such records available for inspection by Lender in
accordance with the terms of the Loan Agreement.

                  5.       Authorized Action by Lender.

                           (a)      Lender may, in its sole discretion, pay any
amount or do any act required of USPL IP hereunder or requested by Lender to
preserve, defend, protect, maintain, record or enforce USPL IP's obligations
contained herein, the Obligations, the Collateral, or the right, title and
interest granted Lender by this Security Agreement, and which USPL IP fails to
do or pay, and any such payment shall be deemed an advance by Lender to USPL IP
and shall be payable on demand together with interest at the highest rate then
payable on the Obligations.

                           (b)      USPL IP agrees to execute and deliver to
Lender three originals of a Special Power of Attorney in substantially the form
of Attachment III to this Agreement for the implementation of the recording,
giving of notice, preservation, assignment, sale or other disposal of the
Collateral pursuant to Subparagraphs 2(a), 2(b), 5(a) and 7(a). Lender agrees
that it shall not use such Special Power of Attorney to assign, sell or
otherwise dispose of the collateral unless an Event of Default shall have
occurred and be continuing.

                                       6
<PAGE>
                           (c)      USPL IP hereby grants to Lender and its
employees and agents the right (so long as no Security Agreement Event of
Default (as defined in Section 7(a) hereof) exists, during normal business
hours) to visit USPL IP's business facilities at which USPL IP manufactures
products or provides services, which products or services are sold under or
provided in connection with any of the Trademarks, and to inspect such products
and the quality control records relating thereto or observe the provision of
such services.

                  6.       Litigation and Other Proceedings.

                           (a)      USPL IP shall have the right and obligation
to commence and diligently prosecute such suits, proceedings or other actions
for infringement or other damage, or reexamination or reissue proceedings, or
opposition or cancellation proceedings as are reasonable to protect any of the
material Patents, Trademarks, Copyrights, Mask Works or Trade Secrets. No such
suit, proceeding or other actions shall be settled or voluntarily dismissed, nor
shall any party be released or excused of any claims of or liability for
infringement, without the prior written consent of Lender, which consent shall
not be unreasonably withheld.

                           (b)      Upon the occurrence and during the
continuation of a Security Agreement Event of Default, Lender shall have the
right but not the obligation to bring suit or institute proceedings in the name
of USPL IP or Lender to enforce any rights in the Collateral, including any
license thereunder, in which event USPL IP shall at the request of Lender do any
and all lawful acts and execute any and all documents required by Lender in aid
of such enforcement. If Lender elects not to bring suit to enforce any right
under the Collateral, including any license thereunder, USPL IP agrees to use
all reasonable measures, whether by suit, proceeding or other action, to prevent
the infringement of any right under the Collateral by any Person and for that
purpose agrees to diligently maintain any action, suit or proceeding against any
Person so infringing necessary to prevent such infringement.

                  7.       Default and Remedies.

                           (a)      USPL IP shall be deemed in default under
this Security Agreement upon the occurrence of an Event of Default, as that term
is defined in the Loan Agreement or upon the occurrence of any breach,
violation, nonperformance or non-payment under the Guaranty (any such event, a
"Security Agreement Event of Default"). Upon the occurrence and during the
continuation of any such Security Agreement Event of Default, Lender may, at its
option, and (except if otherwise specified below) without notice to or demand on
USPL IP, and in addition to all rights and remedies available to Lender under
the Loan Agreement or the other Loan Documents, do any one or more of the
following:

                                    (i)      upon seven (7) days' prior notice
         to USPL IP, direct USPL IP not to make any further use of the Patents,
         the Trademarks (or any mark similar thereto), the Copyrights (or any
         work deriving therefrom), or the Mask Works for any purpose;

                                    (ii)     at any time and from time to time,
         upon ten (10) days' prior notice to USPL IP, license, whether general,
         special or otherwise, and whether on an

                                       7
<PAGE>
         exclusive or nonexclusive basis, any of the Patents, Trademarks,
         Copyrights or Mask Works, throughout the world for such term or terms,
         on such conditions, and in such manner, as Lender shall in its sole
         discretion determine;

                                    (iii)    at any time and from time to time,
         enforce (and upon notice to USPL IP have the exclusive right to
         enforce) against any licensor, licensee or sublicensee all rights and
         remedies of USPL IP in, to and under any one or more license agreements
         with respect to the Collateral (without assuming any obligations or
         liability thereunder), and take or refrain from taking any action under
         any thereof;

                                    (iv)     at any time and from time to time,
         upon ten (10) days' prior notice to USPL IP, assign, sell, or otherwise
         dispose of, the Collateral or any of it, either with or without special
         or other conditions or stipulations, with power to buy the Collateral
         or any part of it, and with power also to execute assurances, and do
         all other acts and things for completing the assignment, sale or
         disposition which Lender shall, in its sole discretion, deem
         appropriate or proper; and

                                    (v)      in addition to the foregoing, in
         order to implement the assignment, sale or other disposal of any of the
         Collateral pursuant to clause (a)(iv) hereof, Lender may, at any time,
         pursuant to the authority granted in the Power of Attorney executed
         pursuant to Subparagraph 5(b) hereof, execute and deliver on behalf of
         USPL IP, one or more instruments of assignment of the Patents,
         Trademarks, Copyrights or Mask Works (or any application or
         registration thereof), in form suitable for filing, recording or
         registration in any country.

                           (b)      USPL IP agrees to pay when due all
reasonable costs incurred in any such transfer of the Patents, Trademarks,
Copyrights or Mask Works, including any taxes, fees and reasonable attorneys'
fees and expenses, and all such costs shall be added to the Obligations. Lender
may apply the proceeds actually received from any such license, assignment, sale
or other disposition to the reasonable costs and expenses thereof, including
reasonable attorneys' fees and all legal, travel and other expenses which may be
incurred by Lender, and then to the Obligations, in accordance with the terms of
the Loan Agreement; and USPL IP shall remain liable and will pay Lender on
demand any deficiency remaining, together with interest thereon at a rate equal
to the highest rate then payable on the Obligations and the balance of any
expenses unpaid. Nothing herein contained shall be construed as requiring Lender
to take any such action at any time. In the event of any such license,
assignment, sale or other disposition of the Collateral, or any of it, after the
occurrence or continuation as hereinabove provided of a Security Agreement Event
of Default, USPL IP shall supply its know-how and expertise relating to the
manufacture and sale of the products bearing or in connection with which the
Trademarks, Patents, Copyrights or Mask Works are used, and its customer lists
and other records relating to the Trademarks, Patents, Copyrights or Mask Works
and to the distribution of products or the provisions of services, to Lender or
its designee.

                                       8
<PAGE>
                  8.       Indemnification and Release.

                           (a)      USPL IP assumes all responsibility and
liability arising from the use of the Patents, Trademarks, Copyrights and Mask
Works, and USPL IP hereby indemnifies and holds Lender and its directors,
officers, employees, agents and any of its Affiliates ("Indemnitees") harmless
from and against any third party claim, suit, loss, damage or expense (including
reasonable attorneys' fees and expenses) arising out of or in connection with
any alleged infringement of any patent, trademark, service mark, trade name,
trade secret, copyright or mask work of a third party or alleged defect in any
product manufactured, promoted or sold by USPL IP (or any Affiliate of USPL IP)
in connection with any Patent, Trademark, Copyright or Mask Work or out of the
manufacture, promotion, labeling, sale or advertisement of any product or
service by USPL IP (or any Affiliate of USPL IP). USPL IP agrees that Lender
does not assume, nor shall Lender have any responsibility for, the payment of
any sums due or to become due under any agreement or contract included in the
Collateral or the performance of any obligations to be performed under or with
respect to any such agreement or contract by USPL IP, and USPL IP hereby agrees
to indemnify and hold each Indemnitee harmless with respect to any and all third
party claims by any Person relating thereto.

                           (b)      USPL IP agrees to indemnify and hold each
Indemnitee harmless and against any third party claim, suit, loss, damage or
expense (including reasonable attorneys' fees and expenses) arising out of or in
connection with (i) any claim, suit or proceeding instituted by or against USPL
IP, (ii) any action taken or omitted to be taken by Lender pursuant to
Subparagraph 6(b), or (iii) any action taken or omitted to be taken by Lender
pursuant to clause 7(a)(iii) hereof with respect to any license agreement of
USPL IP; provided, however, that USPL IP shall not be required to indemnify any
Indemnitee to the extent such liability arises from the willful misconduct or
gross negligence of such Indemnitee.

                           (c)      USPL IP hereby releases each Indemnitee from
any claims, causes of action and demands at any time arising out of or with
respect to any actions taken or omitted to be taken by the Indemnitees, or any
of them, under the powers of attorney granted under the Special Power of
Attorney executed pursuant to Subparagraph 5(b) herein, other than actions taken
or omitted to be taken through the gross negligence or willful misconduct of
such Indemnitees.

                           (d)      USPL IP agrees to cause Lender to be named
as an additional insured with respect to any policy of insurance held by USPL IP
from time to time covering product liability or intellectual property
infringement risk.

                  9.       Miscellaneous.

                           (a)      Notices. Except as otherwise provided
herein, all notices, requests, demands, consents, instructions or other
communications to or upon USPL IP or Lender under this Security Agreement shall
be made and deemed received in accordance with the terms of the Loan Agreement.

                                       9
<PAGE>
                           (b)      Nonwaiver. No failure or delay on Lender's
part in exercising any right hereunder shall operate as a waiver thereof or of
any other right nor shall any single or partial exercise of any such right
preclude any other further exercise thereof or of any other right.

                           (c)      Amendments and Waivers. Except with respect
to action by the Lender pursuant to Subparagraph 4(d), this Security Agreement
may not be amended or modified, nor may any of its terms be waived, except by
written instruments signed by USPL IP and Lender as required by the Loan
Agreement. Each waiver or consent under any provision hereof shall be effective
only in the specific instances and for the purpose for which given.

                           (d)      Assignments. This Security Agreement shall
be binding upon and inure to the benefit of Lender and USPL IP and their
respective successors and assigns; provided, however, that USPL IP and Lender
may sell, assign and delegate their respective rights and obligations hereunder
only as permitted by the Loan Agreement.

                           (e)      Cumulative Rights, etc. The rights, powers
and remedies of Lender under this Security Agreement shall be in addition to all
rights, powers and remedies given to Lender by virtue of any applicable law,
rule or regulation of any Governmental Authority, the Loan Agreement, any other
Loan Document or any other agreement, all of which rights, powers, and remedies
shall be cumulative and may be exercised successively or concurrently without
impairing Lender's rights hereunder. USPL IP waives any right to require Lender
to proceed against any Person or to exhaust any Collateral or to pursue any
remedy in Lender's power.

                           (f)      Payments Free of Taxes, Etc. All payments
made by USPL IP under this Security Agreement shall be made by USPL IP free and
clear of and without deduction for any and all present and future taxes, levies,
charges, deductions and withholdings. In addition, USPL IP shall pay upon demand
any stamp or other taxes, levies or charges of any jurisdiction with respect to
the execution, delivery, registration, performance and enforcement of this
Security Agreement. Upon request by Lender, USPL IP shall furnish evidence
satisfactory to Lender that all requisite authorizations and approvals by, and
notices to and filings with, governmental authorities and regulatory bodies have
been obtained and made and that all requisite taxes, levies and charges have
been paid.

                           (g)      Partial Invalidity. If any time any
provision of this Security Agreement is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions of this
Security Agreement nor the legality, validity or enforceability of such
provision under the law of any other jurisdiction shall in any way be affected
or impaired thereby.

                           (h)      Governing Law. This Security Agreement
shall be governed by and construed in accordance with the laws of the State of
California without reference to conflicts of law rules.

                           (i)      Submission to Jurisdiction. USPL IP hereby
irrevocably and unconditionally:

                                       10
<PAGE>
                                    (i)      Submits for itself and its property
         in any legal action or proceeding relating to this Security Agreement,
         or for recognition and enforcement of any judgment in respect thereof,
         to the non-exclusive jurisdiction of the courts of the State of
         California and the courts of the United States of America for the
         County of Los Angeles, and consents and agrees to suit being brought in
         such courts as Lender may elect;

                                    (ii)     Waives any objection that it may
         now or hereafter have to the venue of any such action or proceeding in
         any such court or that such proceeding was brought in an inconvenient
         court and agrees not to plead or claim the same; and

                                    (iii)    Waives personal service of the
         summons, complaint and other process issued in any such action or suit
         and agrees that service of such summons, complaint and other process
         may be made by registered or certified mail addressed to USPL IP at the
         address set forth in the Loan Agreement and that service so made shall
         be deemed completed upon the earlier of USPL IP's actual receipt
         thereof or 3 business days after deposit in the U.S. Mails, proper
         postage prepaid. Nothing in this Security Agreement shall be deemed or
         operate to affect the right of Lender to serve legal process in any
         other manner permitted by law, or to preclude the enforcement by Lender
         of any judgment or order obtained in such forum or the taking of any
         action under this Security Agreement to enforce same in any other
         appropriate forum or jurisdiction.

                           (j)      Jury Trial. EACH OF USPL IP  AND LENDER,
AND TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION,
PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS SECURITY
AGREEMENT.

                            [Signature Page Follows]

                                       11
<PAGE>
                  IN WITNESS WHEREOF, USPL IP has caused this Security Agreement
to be executed as of the day and year first above written.

                                            U.S. PLASTIC LUMBER IP CORPORATION

                                            By: /s/ Bruce C. Rosetto
                                                --------------------------------
                                            Name:  Bruce C. Rosetto
                                            Title: President and Secretary

                                            GUARANTY BUSINESS CREDIT CORPORATION

                                            By: /s/ Ronald S. Montgomery
                                                --------------------------------
                                            Name:  Ronald S. Montgomery
                                            Title: Senior Vice President
<PAGE>
                                  ATTACHMENT I
                              TO SECURITY AGREEMENT

                           (a)      All copyrights including (i) all original
         works of authorship fixed in any tangible medium of expression, all
         right, title and interest therein and thereto, and all registrations
         and recordings thereof, including all applications, registrations and
         recordings in the Copyright Office or in any similar office or agency
         of the United States, any state thereof, or any foreign country or any
         political subdivision thereof, all whether now owned or hereafter
         acquired by USPL IP, including those described on Schedule E to this
         Attachment I annexed hereto, which Schedule E is incorporated herein by
         this reference, and (ii) all extensions or renewals thereof and all
         licenses thereof (collectively, the "Copyrights");

                           (b)      All patentable inventions, patent rights,
         shop rights, letters patent of the United States or any other country,
         all right, title and interest therein and thereto, and all
         registrations and recordings thereof, including (i) all Patent
         Registrations and recordings in the Patent and Trademark Office or in
         any similar office or agency of the United States, any state thereof or
         any foreign country or political subdivision thereof, all whether now
         owned or hereafter acquired by USPL IP, including those described in
         Schedules B and D to this Attachment I annexed hereto, which Schedules
         B and D are incorporated herein by this reference, and (ii) all
         reissues, continuations, continuations-in-part or extensions thereof
         and all licenses thereof (collectively, the "Patents");

                           (c)      All trademarks, trade names, trade styles
         and service marks, and all prints and labels on which said trademarks,
         trade names, trade styles and service marks have appeared or appear,
         and all designs and general intangibles of like nature, now existing or
         hereafter adopted or acquired, all right, title and interest therein
         and thereto, all registrations and recordings thereof, including (i)
         all applications, registrations and recordings in the Patent and
         Trademark Office or in any similar office or agency of the United
         States, any state thereof, or any foreign country or any political
         subdivision thereof, all whether now owned or hereafter acquired by
         USPL IP, including those described in Schedules A and C to this
         Attachment I, which Schedules A and C are incorporated herein by this
         reference, and (ii) all reissues, extensions or renewals thereof and
         all licenses thereof (collectively, the "Trademarks");

                           (d)      All goodwill of USPL IP's business
         symbolized by the Trademarks and all customer lists and other records
         of USPL IP relating to the distribution of products or provision of
         services bearing or covered by the Trademarks;

                           (e)      All mask works including all series of
         related images, however fixed or encoded, in final or intermediate
         form, having or representing the predetermined, three dimensional
         pattern of metallic, insulating, or semiconductor material present or
         removed from the layers of a semiconductor chip product, in which
         series the relation of the images to one another is that each image has
         the pattern of the surface of one form of

                                     I-A-1
<PAGE>
         the semiconductor chip product, and all right, title and interest
         therein and thereto, and all registrations and recordings thereof,
         including all applications, registrations and recordings in the
         Copyright Office or in any similar office or agency of the United
         States, any state thereof, or any foreign country or any political
         subdivision thereof, all whether now owned or hereafter acquired by
         USPL IP, including those described on Schedule F to this Attachment I
         annexed hereto, which Schedule F is incorporated herein by this
         reference, and (ii) all extensions or renewals thereof and all licenses
         thereof (collectively, the "Mask Works").

                           (f)      All information, including formulas,
         patterns, compilations, programs, devices, methods, techniques or
         processes, that derives independent economic value, actual or
         potential, from not being generally known to, and not being readily
         ascertainable by proper means by other Persons who can obtain economic
         value from its disclosure or use, all whether now owned or hereafter
         acquired by USPL IP (collectively, the "Trade Secrets").

                           (g)      All claims by USPL IP against any Person for
         past, present or future infringement of the Patents, Trademarks,
         Copyrights, Mask Works or Trade Secrets;

                           (h)      All proceeds of the foregoing (including
         whatever is receivable or received when Collateral or proceeds is (are)
         sold, collected, exchanged, licensed or otherwise disposed of, whether
         such disposition is voluntary or involuntary, including rights to
         payment and return premiums and insurance proceeds under insurance with
         respect to any Collateral, and all rights to payment with respect to
         any cause of action affecting or relating to the Collateral).

                                     I-A-2
<PAGE>
                           SCHEDULE A TO ATTACHMENT I
                              TO SECURITY AGREEMENT

                                   TRADEMARKS

<TABLE>
<CAPTION>
       Trademark                   Jurisdiction                Reg. Date                    Reg. No.
       ---------                   ------------                ---------                    --------
<S>                                <C>                         <C>                          <C>
TRIMAX                                 U.S.                     03/03/92                     1,677639

RECYCLEMAID                            U.S.                     11/03/92                    1,730,180

CLEAN EARTH                            U.S.                     12/15/92                    1,740,437

RECYCLEDESIGN                          U.S.                     03/03/93                    1,785,567

GLOBAL GARDEN (STYLIZED)               U.S.                     11/23/93                    1,806,131

DURAWOOD                               U.S.                     04/02/96                    1,965,161

SMARTTRIM                              U.S.                     10/21/97                    2,107,201

SMARTDECK                              U.S.                     11/18/97                    2,114,015

GRIP-GUARD                             U.S.                     05/12/98                    2,156,630

CRUSH-GUARD                            U.S.                     08/11/98                    2,180,208

CAREFREE DECKING SYSTEM                U.S.                     02/16/99                    2,223,909

MISCELLANEOUS DESIGN (USPL             U.S.                     03/09/99                    2,230,266
LOGO)

DURATIE                                U.S.                     04/27/99                    2,241,593

INTEGRATED TECHNICAL                   U.S.                     03/28/00                    2,338,253
SERVICES

CYCLEWOOD                              U.S.                     04/11/00                    2,340,492

CAREFREE BUILDING                      U.S.                     05/30/00                    2,353,629
PRODUCTS AND
</TABLE>

                                     A-I-1
<PAGE>
<TABLE>
<CAPTION>
        Trademark                  Jurisdiction                Reg. Date                    Reg. No.
        ---------                  ------------                ---------                    --------
<S>                                <C>                         <C>                          <C>
DESIGN

NO-HASSLE DECKING                      U.S.                     08/20/02                    2,609,410

NO-HASSLE DECKING & RAILING            U.S.                     08/20/02                    2,609,411

NO-HASSLE RAILING                      U.S.                     08/27/02                    2,612,276

DURAPACK                               U.S.                     12/16/97                    2,121,621

GREAT XTERIORS DECKING                 U.S.                     03/26/02                    2,552,688
SYSTEM

CAREFREE XTERIORS                      U.S.                     04/23/02                    2,563,723
</TABLE>

                          FOREIGN TRADEMARKS

<TABLE>
<CAPTION>
  Trademark                        Jurisdiction                Reg. Date                    Reg. No.
  ---------                        ------------                ---------                    --------
<S>                                <C>                         <C>                        <C>
TRIMAX                                Germany                   12/06/96                     2102337

CYCLEWOOD                              Japan                    07/17/98                     4167468

SMART DECK                            Canada                    08/25/99                  TMA515,152

DURAWOOD                               Japan                    12/14/01                     4529756
</TABLE>

                                     A-I-2
<PAGE>
                           SCHEDULE B TO ATTACHMENT I
                              TO SECURITY AGREEMENT

                                  U.S. PATENTS

<TABLE>
<CAPTION>
       Patent                      Jurisdiction                Reg. Date                    Reg. No.
       ------                      ------------                ---------                    --------
<S>                                <C>                         <C>                          <C>
Construction Material                  U.S.                     07/09/01                    5,030,662
Obtained from Recycled
Polyolefins Containing
Other Polymers

Extrusion Method and                   U.S.                     05/18/93                    5,212,223
Apparatus for Recycling
Waste Plastics and
Construction Materials
Therefrom

Composite Building                     U.S.                     08/04/98                    5,789,477
Materials from Recyclable
Waste

Extruded Wood Polymer                  U.S.                     11/28/00                    6,153,293
Composite and Method of
Manufacture

Nestable Shipping Pallet               U.S.                     12/11/01                    6,327,984
with Adjustable Deck

SmartDeck Rail and Deck                U.S.                     05/16/00                    6,061,991
System
</TABLE>

                                     B-I-1
<PAGE>
                            FOREIGN PATENTS

<TABLE>
<CAPTION>
    Patent                         Jurisdiction                Reg. Date                    Reg. No.
    ------                         ------------                ---------                    --------
<S>                                <C>                         <C>                        <C>
Trimax Patent                        Australia                                               651187

Trimax Patent                         Germany                                             69226359.4-08

Trimax Patent                       So. Africa                  08/25/93                     92/1291

Trimax Patent                         Mexico                    01/10/94                      25969

Trimax Patent                         Mexico                    02/06/96                     9200930
</TABLE>

                                     B-I-2
<PAGE>
                           SCHEDULE C TO ATTACHMENT I
                              TO SECURITY AGREEMENT

                           APPLICATIONS FOR TRADEMARKS

<TABLE>
<CAPTION>
     Trademark                     Jurisdiction                Reg. Date                Application No.
     ---------                     ------------                ---------                ---------------
<S>                                <C>                         <C>                   <C>
CAREFREE PROJECT CENTER                U.S.                     10/05/99             75/814,817 (Abandoned)

USPL-50                                U.S.                     05/14/01             76/255,875 (Abandoned)

USPL-10                                U.S.                     05/14/01             76/255,876 (Abandoned)

CYCLEX                                 U.S.                     10/09/01              76/323,087 (Refusal)

IT'S NOTHING IF NOT CAREFREE           U.S.                     10/19/01              76/327,199 (Non-Final
                                                                                             Action)

THE PROCESS OF RECYCLING               U.S.                     10/30/01             76/331,409 (Abandoned)
FOR LIFE
</TABLE>

                                     C-I-1
<PAGE>
                           SCHEDULE D TO ATTACHMENT I
                              TO SECURITY AGREEMENT

                            U.S. PATENT APPLICATIONS

<TABLE>
<CAPTION>
   Patent                      Jurisdiction                Reg. Date                Application No.
   ------                      ------------                ---------                ---------------
<S>                            <C>                         <C>                      <C>
Eaglebrook Pr                      PCT                      01/31/00                   09/244,641
</TABLE>

                           FOREIGN PATENT APPLICATIONS

<TABLE>
<CAPTION>
    Patent                     Jurisdiction                Reg. Date                Application No.
    ------                     ------------                ---------                ---------------
<S>                            <C>                         <C>                      <C>
Trimax Patent                     Europe                   07/22/98 F                  92907679.2

Trimax Patent                     Canada                   02/14/92 F                   2,102,206

Trimax Patent                      India                   05/31/91 F                  170/DEL/92

Trimax Patent                      India                   02/28/92 F                  471/DEL/91
</TABLE>

                                     D-I-1
<PAGE>
                           SCHEDULE E TO ATTACHMENT I
                              TO SECURITY AGREEMENT

                                   COPYRIGHTS

                                      None.

                                     E-I-1
<PAGE>
                           SCHEDULE F TO ATTACHMENT I
                              TO SECURITY AGREEMENT

                                   MASK WORKS

                                      None.

                                     F-I-1
<PAGE>
                           SCHEDULE G TO ATTACHMENT I
                              TO SECURITY AGREEMENT

                  LICENSES GRANTED BY USPL IP TO THIRD PARTIES

                                      None.

                                     G-I-1
<PAGE>
                           SCHEDULE H TO ATTACHMENT I
                              TO SECURITY AGREEMENT

                  LICENSES GRANTED BY THIRD PARTIES TO USPL IP

<TABLE>
<CAPTION>
Licenses              Serial No.                Country             Status            Entity            Issue Date
--------              ----------                -------             ------            ------            ----------
<S>             <C>                             <C>                <C>              <C>                 <C>
Rutgers         5,789,477                          U.S.            Registered         USPL Corp            08/04/98
                                                                                      Licensee

Rutgers         App.#PCT/US97/15239               Europe            Pending           USPL Corp         Filed 08/97
                                                                                      Licensee

Rutgers         97/01/03927                      Argentina          Pending         USPL IP Corp        Filed 08/97
                                                                                      Licensee

Rutgers         97/7748                         So. Africa          Pending           USPL Corp         Filed 08/97
                                                                                      Licensee

Rutgers         818/97                             Egypt            Pending           USPL Corp         Filed 08/98
                                                                                      Licensee

Rutgers                                           Brazil            Pending           USPL Corp         Filed 02/99
                                                                                      Licensee

Rutgers                                           Canada            Pending           USPL Corp         Filed 02/99
                                                                                      Licensee

Rutgers                                           Mexico            Pending           USPL Corp         Filed 02/99
                                                                                      Licensee

Rutgers         41700/97                         Australia          Pending           USPL Corp         Filed 02/99
                                                                                      Licensee

Rutgers                                            Japan            Pending           USPL Corp         Filed 02/99
                                                                                      Licensee

Strandex        Unknown                            World           Registered        USPL IP Corp          04/22/94
                                                                                      Licensee
</TABLE>

                                     H-I-1

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