Exhibit 10.2

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

                     VICE PRESIDENT, CHIEF FINANCIAL OFFICER




                           Effective: January 1, 2005




<PAGE>

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

                     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.

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 Company's financial results noted in Schedule A. Eligible
quarterly performance incentive compensation is payable in the second pay period
of  the  month  following  each  calendar  year  quarter  and  annual  incentive
compensation  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.

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:                                                    $182,000
Performance Incentive Compensation Target (at 100% of Plan):            $ 50,000
Total Annual Target Compensation (at 100% of Plan):                     $232,000

The Performance  Incentive  Compensation is defined as a cash pay program funded
from revenue and is payable only after the Company 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 is based on the achievement of corporate 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.  Corporate  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>
         EPS                         15%           $750      $900     $975    $1,050    $1,125   $1,200      $1,313
   Free Cash Flow                    25%         $1,250    $1,500   $1,625    $1,750    $1,875   $2,000      $2,188
Financial Statements                 45%         $2,250        $0       $0        $0        $0       $0          $0
   SEC Compliance                    15%           $750        $0       $0        $0        $0       $0          $0
</TABLE>

<PAGE>

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

o         Free Cash Flow (net income plus  depreciation and  amortization,  less
          capital  expenditures  and the net change in working  capital)  in the
          quarter.

o         Financial  Statements is the complete,  accurate and timely completion
          of all financial statements in the quarter.

o         SEC Compliance is defined as meeting all applicable  securities  rules
          and regulations in the quarter.

ANNUAL INCENTIVE COMPENSATION:

Represents  60% of the Total  Performance  Incentive  Compensation  target.  The
corporate annual Financial targets and year-end  incentive  compensation at 100%
of plan is $30,000 and 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>
         EPS                         15%          $4,500   $5,400   $5,850     $6,300   $6,750    $7,200      $7,875
   Free Cash Flow                    25%          $7,500   $9,000   $9,750    $10,500  $11,250   $12,000     $13,125
Financial Statements                 45%         $13,500       $0       $0         $0       $0        $0          $0
   SEC Compliance                    15%          $4,500       $0       $0         $0       $0        $0          $0
</TABLE>

o         Free Cash Flow (net income plus  depreciation and  amortization,  less
          capital  expenditures  and the net change in working  capital) for the
          fiscal year.

o         Financial  Statements is the complete,  accurate and timely completion
          of all financial statements for the fiscal year.

o         SEC Compliance is defined as meeting all applicable  securities  rules
          and regulations for the fiscal year.

<PAGE>

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

ACKNOWLEDGMENT:

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


----------------------                ----------------------
/S/ Richard Kelecy                    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