Chief Financial Officer Compensation Plan

Executive Compensation Plan Agreement

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This Executive Compensation Plan Agreement involves

PERMA FIX ENVIRONMENTAL SERVICES INC

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Title: Chief Financial Officer Compensation Plan
Date: 5/7/2009
Industry: Waste Management Services Sector: Services

Chief Financial Officer Compensation Plan, Parties: perma fix environmental services inc

VICE PRESIDENT, CHIEF FINANCIAL OFFICER

Effective: January 1, 2009

VICE PRESIDENT, CHIEF FINANCIAL OFFICER

PURPOSE: To define the compensation plan for the Vice President, Chief Financial Officer.

SCOPE: Perma-Fix Environmental Services, Inc.

POLICY: The Vice President, Chief Financial Officer Compensation Plan is designed to retain, motivate and reward the incumbent to support and achieve the business, operating and financial objectives of Perma-Fix Environmental Services, Inc. (the “Company”).

BASE SALARY: The Base Salary indicated below is paid in equal periodic installments per the regularly scheduled payroll.

PERFORMANCE INCENTIVE COMPENSATION: Performance Incentive Compensation is available based on the Company’s financial results noted in Schedule A. Performance Incentive Compensation in the nature of prepayments are payable in the month following each calendar year quarter in a lump sum. Annual performance incentive pay is payable in the month following the close of the Company’s financial books, but in any event no later than March 15, 2010. If the financial books are not closed as of March 15, the annual performance incentive pay will be based on a good faith estimate of the Company’s financial results for the applicable year.

SEPARATION: Upon voluntary or involuntary separation from the Company the employee will be paid the base salary due to the last day of employment. If employment is separated prior to a regularly scheduled quarterly or annual incentive compensation payment period as noted above, no incentive compensation is due to the incumbent.

ACKNOWLEDGEMENT: Payment of Performance Incentive Compensation of any type will be forfeited, unless the Human Resources Department has received a signed acknowledgement of receipt of the Compensation Plan prior to the applicable payment date.

INTERPRETATIONS: The Compensation and Stock Option Committee (the “Compensation Committee”) of the Board of Directors retains the right to modify, change or terminate the Compensation Plan at any time and for any reason. It also reserves the right to determine the final interpretation of any provision contained in the Compensation Plan and it reserves the right to modify or change the Revenue and Net Income Targets as defined herein in the event of the sale or disposition of any of the assets of the Company. While the plan is intended to represent all situations and circumstances some issues may not easily be addressed. The Compensation Committee will endeavor to review all standard and non-standard issues related to the Compensation Plan and will provide quick interpretations that are in the best interest of the Company, its shareholders and the incumbent.

VICE PRESIDENT, CHIEF FINANCIAL OFFICER

Base Pay and Performance Incentive Compensation Targets

The compensation for the below named individual as follows:

Annualized Base Pay:	$	200,000
Performance Incentive Compensation Target (at 100% of Plan):		50,000
Total Annual Target Compensation (at 100% of Plan):	$	250,000

The Performance Incentive Compensation Target is based on the schedule below.

Target Objectives
				Performance Target Thresholds
	Weights			100% or less			98%-99%		96-97%		94-95%		92-93%		90-91%		88-89%

Administrative Expenses		15	%		7,500		9,000		9,751		10,531		11,250		12,000		13,125

	Weights				85-100	%	101-120	%	121-130	%	131-140	%	141-150	%	151-160	%	161	%+

Net Income		25	%		12,500		15,000		16,252		17,551		18,749		20,000		21,875

Accounting		10	%		5,000		6,000		6,501		7,021		7,500		8,000		8,750

Accounts Receivable		10	%		5,000		6,000		6,501		7,021		7,500		8,000		8,750

SOX Compliance		10	%		5,000		6,000		6,501		7,021		7,500		8,000		8,750

Centralization & IT Objectives		30	%		15,000		18,000		19,503		21,062		22,499		24,000		26,250

Unbilled Receivables	*** If criteria (Item #6) for reducing uniblled AR are not met bonus will be reduced by 15%.**

					50,000		60,000		65,009		70,205		74,997		80,000		87,500

Administrative Expense is defined as the total consolidated administrative expenses applicable as publicly reported in the Company’s financial statements. Administrative expenses will be inclusive of all subsidiaries, and will exclude Marketing Expenses and Interest Expense. The Board reserves the right to make adjustments to administrative expenses so as not to penalize the employee for material unforeseen events outside of the employees responsibility and it reserves the right to modify or change the Administrative Expense Targets as defined herein in the event of the sale or disposition of any of the assets of the Company or in the event of an acquisition. The Board further reserves the right to adjust Administrative Expenses to reflect charges resulting from the vesting of incentive stock options.

Net Income is defined as the total consolidated bottom line net income applicable to Common Stock as publicly reported in the Company’s financial statements. The net income will include all subsidiaries, corporate charges, dividends and discounted operations. The percentage achieved is determined by comparing the actual net income to the Board approved budgeted net income. The Board reserves the right to make adjustments to net income so as not to penalize the employee for

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