Exhibit 10.4

                     PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                            2005 - Compensation Plan

                             PRESIDENT - INDUSTRIAL




                           Effective: January 1, 2005




<PAGE>

                     PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                            2005 - Compensation Plan

                             PRESIDENT - INDUSTRIAL

PURPOSE: To define the compensation plan for the President - Industrial Segment.

SCOPE:  Perma-Fix Environmental Services, Inc.

POLICY:  The  President -  Industrial  Compensation  Plan is designed to retain,
motivate and reward the incumbent to support and achieve the business, operating
and  financial  objectives of  Industrial  Segment and  Perma-Fix  Environmental
Services, Inc.

BASE  SALARY:  The Base Salary  noted in  Schedule A. is paid in equal  periodic
installments per the regularly scheduled payroll.

PERFORMANCE  INCENTIVE  COMPENSATION:   Performance  Incentive  Compensation  is
available based on the Industrial  Segment results noted in Schedule A. Eligible
quarterly performance incentive compensation is payable in the second pay period
of the month following each fiscal year quarter and annual performance incentive
pay is payable in the second pay period of the month  following the close of the
Company's financial books.

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:  No Base Salary or Performance  Incentive  Compensation  of any
type will be provided until the Human Resources Department has received a signed
acknowledgement of receipt of the Compensation Plan from the incumbent.

INTERPRETATIONS:  The Compensation  Committee of the Board of Directors  retains
the right to modify,  change or terminate the  Compensation  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. 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.

<PAGE>

                     PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                            2005 - Compensation Plan
SCHEDULE A.

The compensation for the below named individual as follows:

Annualized Base Pay:                                                    $180,000
Performance Incentive Compensation Target (at 100% of Plan):            $ 50,000
Total Annual Target Compensation (at 100% of Plan):                     $230,000

The Performance  Incentive  Compensation is defined as a cash pay program funded
from revenue and is payable only after the  Industrial  Segment  meets a minimum
threshold  of  85% of  its  budgeted  EBITDA,  including  Performance  Incentive
Compensation accrual targets during the course of the year. When the Performance
Incentive  Compensation  Plan is funded,  the  employee  is  eligible to receive
quarterly and annual  Incentive  Compensation  based on the  achievement  of the
Industrial Segment's Financial and Non-Financial objectives noted below.

QUARTERLY INCENTIVE COMPENSATION:

Represents 40% of the Total Performance Incentive Compensation target. The total
eligible  Quarterly  Incentive  Compensation  spread over four (4)  quarters for
performance at 100% of year-to-date  plan is $20,000.  The Industrial  Segment's
Financial and Non-Financial  targets are cumulative from quarter to quarter with
eligible incentive pay based on the table below.

<TABLE>
<CAPTION>
                                                              Performance Target Thresholds
                                                                     (Actual versus Plan)
                                                -------------------------------------------------------------------
                                                  90%      101%     121%      131%      141%      151%
                                                   -        -        -         -         -         -        161%
                                                  100%     120%     130%      140%      150%      160%      Plus
                                                ------    ------   ------    ------   ------    ------      ------
   Targets (Cumulative)        Target Weight                   Per Quarter Incentive Pay Target
   --------------------        -------------    -------------------------------------------------------------------
<S>                                 <C>         <C>       <C>      <C>       <C>      <C>       <C>         <C>
           Revenue                   15%           $750      $900     $975    $1,050   $1,125    $1,200      $1,313
      Operating Profit               55%         $2,750    $3,300   $3,575    $3,850   $4,125    $4,400      $4,813
       Health & Safety               15%           $750      $900     $975    $1,050   $1,125    $1,200      $1,313
Permit and License Violations        15%           $750        $0       $0        $0       $0        $0          $0
</TABLE>

<PAGE>

                     PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                            2005 - Compensation Plan

o         Revenue is the percentage of the top-line budget achieved for existing
          segment services and where feasible, the identification and generation
          of new revenue from non-traditional revenue sources in the quarter.

o         Health and Safety is the  percentage  reduction  of actual  Reportable
          Worker's  Compensation  Accidents  for the  Industrial  Segment in the
          quarter  versus  the prior  year's  quarterly  average  of  Reportable
          Worker's Compensation Accidents.

o         Permit and License Violations is defined as no major Permit or License
          Violations for the Industrial Segment in the quarter.

ANNUAL INCENTIVE COMPENSATION:

Represents  60% of the Total  Performance  Incentive  Compensation  target.  The
annual  Industrial  Segment  Financial  and  Non-Financial  targets and year-end
incentive  compensation  at 100% of plan is $30,000  payable  based on the table
below.

<TABLE>
<CAPTION>
                                                              Performance Target Thresholds
                                                                     (Actual versus Plan)
                                                -------------------------------------------------------------------
                                                  90%      101%     121%      131%      141%      151%
                                                   -        -        -         -         -         -        161%
                                                  100%     120%     130%      140%      150%      160%      Plus
                                                ------    ------   ------    ------   ------    ------      ------
   Targets (Cumulative)        Target Weight                   Per Quarter Incentive Pay Target
   --------------------        -------------    -------------------------------------------------------------------
<S>                                 <C>         <C>       <C>      <C>       <C>      <C>       <C>         <C>
           Revenue                  15%           $4,500    $5,400   $5,850    $6,300   $6,750    $7,200      $7,875
      Operating Profit              55%          $16,500   $19,800  $21,450   $23,100  $24,750   $26,400     $28,875
       Health & Safety              15%           $4,500    $5,400   $5,850    $6,300   $6,750    $7,200      $7,875
Permit and License Violations       15%           $4,500        $0       $0        $0       $0        $0          $0
</TABLE>

o         Revenue is the percentage of the top-line budget achieved for existing
          segment services and where feasible, the identification and generation
          of new revenue from non-traditional revenue sources in the year.

o         Health  and Safety is the  percentage  reduction  of the total  actual
          Reportable Worker's Compensation  Accidents for the Industrial Segment
          for the year  compared to the prior year's total  Reportable  Worker's
          Compensation Accidents.

<PAGE>

                     PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                            2005 - Compensation Plan

o         Permit and License Violations is defined as no major Permit or License
          Violations for the Industrial Segment in the year.

ACKNOWLEDGMENT:

I  acknowledge  receipt of the  aforementioned  President  -  Industrial  2005 -
Compensation  Plan. I have read and understand and accept  employment  under the
terms and conditions set forth therein.


----------------------                ----------------------
/S/ Timothy Keegan                    Date


----------------------                -----------------------
/S/ Dr. Louis Centofanti              Date


FORWARD SIGNED FORM TO:               Perma-Fix Environmental Services, Inc.
                                      c/o Dr. Louis Centofanti
                                      1940 N.W. 67th Place, Suite A
                                      Gainesville, FL  32653