VICE
PRESIDENT, CHIEF FINANCIAL OFFICER

    


    Effective:
January 1, 2010

    


    Vice
President CFO 2010 Incentive Plan

    3/3/2010


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    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.  Effective date of plan is January
1, 2010 and incentive will be for entire year. Performance incentive
compensation will be paid on or about 90 days after year-end, or sooner, based
on final 10K financial statement.

    


    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 the 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 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 Net Income or other applicable
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 CFO 2010 Incentive Plan

      3/3/2010

    

     

    
      
         


      

      
         


        
          

        

      

      
         


      

    


    VICE
PRESIDENT, CHIEF FINANCIAL OFFICER

    


    Base Pay and Performance
Incentive Compensation Targets

    


    The
compensation for the below named individual as follows:

    


    
      
        
          
            	
                    Annualized
      Base Pay:

                  	 	$	208,000	 
	
                    Performance
      Incentive Compensation Target (at 100% of Plan):

                  	 	 	52,000	 
	
                    Total
      Annual Target Compensation (at 100% of Plan):

                  	 	$	260,000	 


          

        

      

    

    


    The
Performance Incentive Compensation Target is based on the Schedule A
below.

    


    Target
Objectives

    


    
      
        
          
            
              
                
                  
                    
                      
                        	 
      	 	 	 	 	
                                Performance
      Target Thresholds

                              	 
	 
      	 	
                                Weights

                              	 	 	 	
                                100%+

                              	 	 	 	
                                98-99%

                              	 	 	 	
                                96-97%

                              	 	 	 	
                                94-95%

                              	 	 	 	
                                92-93%

                              	 	 	 	
                                90-91%

                              	 	 	 	
                                88-89%

                              	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                Administrative

                              	 	 	15	%	 	 	7,800	 	 	 	9,360	 	 	 	9,751	 	 	 	10,531	 	 	 	11,700	 	 	 	12,480	 	 	 	13,650	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	
                                Performance
      Target Thresholds

                              	 
	 
      	 	
                                Weights

                              	 	 	 	
                                85-100%

                              	 	 	 	
                                101-120%

                              	 	 	 	
                                121-130%

                              	 	 	 	
                                131-140%

                              	 	 	 	
                                141-150%

                              	 	 	 	
                                151-160%

                              	 	 	 	
                                161%+

                              	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                Net
      Income

                              	 	 	25	%	 	 	13,000	 	 	 	15,600	 	 	 	16,900	 	 	 	18,200	 	 	 	19,500	 	 	 	20,800	 	 	 	22,750	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                Accounting

                              	 	 	10	%	 	 	5,200	 	 	 	6,240	 	 	 	6,760	 	 	 	7,280	 	 	 	7,800	 	 	 	8,320	 	 	 	9,100	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                Accounts
      Receivable

                              	 	 	10	%	 	 	5,200	 	 	 	6,240	 	 	 	6,760	 	 	 	7,280	 	 	 	7,800	 	 	 	8,320	 	 	 	9,100	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                SOX
      Compliance

                              	 	 	10	%	 	 	5,200	 	 	 	6,240	 	 	 	6,760	 	 	 	7,280	 	 	 	7,800	 	 	 	8,320	 	 	 	9,100	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                Centralization
      & IT Objectives

                              	 	 	30	%	 	 	15,600	 	 	 	18,720	 	 	 	20,280	 	 	 	21,840	 	 	 	23,400	 	 	 	24,960	 	 	 	27,300	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                Unbilled
      Receivables

                              	 	
                                *
      If criteria (Item #5) for reducing unbilled AR are not met bonus will be
      reduced by 15%

                              	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	52,000	 	 	 	62,400	 	 	 	67,211	 	 	 	72,411	 	 	 	78,000	 	 	 	83,200	 	 	 	91,000	 


                      

                    

                  

                

              

            

          

        

      

    

     

    
      	
              1)

            	
              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.

            


    

     

    
      	
              2)

            	
              Net
      Income is defined as the total consolidated pre-tax 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 actions in the current year which will contribute to net income in
      future years and it reserves the right to modify or change the Net Income
      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 net
      income to reflect charges resulting from the vesting of incentive
      stock options.

            


    

    
      


      Vice
President CFO 2010 Incentive Plan

      3/3/2010

    

     

    
      
         


      

      
         


        
          

        

      

      
         


      

    

     

    
      	
              3)

            	
              Accounting
      objective should focus on meeting filing deadlines such as 10K, 10Q, 8K
      and press releases with complete and accurate
  information.

            


    

     

    
      
        
          
            
              
                
                  
                    	
                            SEC Filings

                          	 	
                            Performance Target

                          	 
	
                            10K
      – filed timely or

                          	 	 	3	%
	
                            10K
      – extension

                          	 	 	1.5	%
	
                            1st
      quarter 10Q – filed timely or

                          	 	 	2	%
	
                            1st
      quarter 10Q – extension

                          	 	 	1	%
	
                            2nd
      quarter 10Q – filed timely or

                          	 	 	2	%
	
                            2nd
      quarter 10Q – extension

                          	 	 	1	%
	
                            3rd
      quarter 10Q – filed timely or

                          	 	 	2	%
	
                            3rd
      quarter 10Q - extension

                          	 	 	1	%
	
                            All
      8K’s Filed

                          	 	 	1	%
	 	 	 	 	 
	
                            Total
      Achievable

                          	 	 	10	%


                  

                

              

            

          

        

      

    

     

    
      	
              4)

            	
              Accounts
      Receivable objective should focus on achieving certain AR
      targets.

            


    

     

    
      
        
          
            
              	
                      Accounts Receivable

                    	 	
                      Performance Target

                    	 
	
                      25%
      or less of AR > than 60 days

                    	 	 	5.0	%
	
                      30%
      or less of AR > than 60 days

                    	 	 	2.5	%
	
                      9%
      or less of AR > than 120 days

                    	 	 	5.0	%
	
                      10%
      or less of AR > than 120 days

                    	 	 	2.5	%
	
                      Total
      Achievable

                    	 	 	10.0	%


            

          

        

      

    

     

    Accounts
Receivable will be defined as outstanding accounts receivable, per companies AR
sub-ledger, collectable within the control of the financial and operational
staff.

     

    Adjustments
for this figure will include but not be limited to:

     

    
      	
               
      

            	
              1.

            	
              Accounts
      fully reserved when calculating Bad Debt
  Allowance;

            


    

     

    
      	
               
      

            	
              2.

            	
              Accounts
      that are in litigation; and

            


    

     

    
      	
               
      

            	
              3.

            	
              Accounts
      not receivable due to a legitimate operational delay.  Note this
      will only be excluded if invoicing was appropriate despite the operational
      delay.

            


    

     

    
      	
              5)

            	
              The
      SOX Incentive target is based maintaining good internal controls and
      minimizing material weaknesses similar to “Permit and License” violations
      on CEO Plan.

            


    

     

    
      
        
          
            	
                    SOX
      Deficiencies

                  	 	
                    Performance Target

                  	 
	
                    0

                  	 	 	10	%
	
                    1

                  	 	 	9	%
	
                    2

                  	 	 	8	%
	
                    3

                  	 	 	5	%
	
                    4

                  	 	 	2	%
	
                    >
      4

                  	 	 	0	%


          

        

      

    

    


    Vice
President CFO 2010 Incentive Plan

    3/3/2010


    
      
         


      

      
         


        
          

        

      

      
         


      

    

    


    
      	
              6)

            	
              Centralization
      Objective - Completion of the following milestones related to the planned
      centralization of the accounting function to the Corporate office.
      Completion of each objective earns 3% with a maximum target achievable of
      30%.

            


    

    


    
      
        
          
            	
                    Accounting Centralization Objectives

                  	 	
                    Performance

                    Target

                  	 
	
                    · 
      Complete Rollout of Solomon Accounting Purchase Order System at
      Facilities

                  	 	 	3.0	%
	 
      	 	 	 	 
	
                    ·  Final
      Phase of AP transition integrating PO system and centralized AP
      system.

                  	 	 	3.0	%
	 
      	 	 	 	 
	
                    ·  Rollout
      Image-link to remaining facilities (paperless filing of accounting
      back-up)

                  	 	 	3.0	%
	 
      	 	 	 	 
	
                    ·  Install
      Multi-Company Software at Corporate Office

                  	 	 	3.0	%
	 
      	 	 	 	 
	
                    · 
      Centralize all remaining JE’s at Corporate office (mostly revenue
      related)

                  	 	 	3.0	%
	 
      	 	 	 	 
	
                    · 
      Improved forecasting model from facilities including new software
      if cost effective.

                  	 	 	3.0	%
	 
      	 	 	 	 
	
                    ·  Payroll
      Processing Improvements – Improved time management systems if cost
      effective.

                  	 	 	3.0	%
	 
      	 	 	 	 
	
                    ·  Cost
      accounting initiatives to support Field Services initiative and DCAA audit
      requirements.

                  	 	 	3.0	%
	 
      	 	 	 	 
	
                    · 
      Complete and make operational PFNW waste tracking
      system.

                  	 	 	3.0	%
	 
      	 	 	 	 
	
                    ·  Plan
      for implementation of new waste tracking system at other nuclear
      facilities and industrial facilities if cost effective.

                  	 	 	3.0	%
	 
      	 	 	 	 
	
                    ·  System
      integration plan for the Southeast

                  	 	 	3.0	%
	 
      	 	 	 	 
	
                    · 
      Tele-Com Consolidation

                  	 	 	3.0	%


          

        

      

    

    


    
      	
              7)

            	
              Unbilled
      trade receivables is the amount of unbilled reported per 10Q or 10K
      combining both the long term and current portion of
      unbilled.    Unbilled
      trade receivable balances older than 12/31/07 should be reduced by $2.5
      million from $3,380,000 as of 12/31/09 to $880,000 by
      12/31/10.

            


    

    


    Performance Incentive
Compensation Payment

    


    Effective
date of plan is January 1, 2010 and incentive will be for entire year.
Performance incentive compensation will be paid on or about 90 days after
year-end, or sooner, based on final 10K financial statement.

    


    ACKNOWLEDGMENT:

    I
acknowledge receipt of the aforementioned Vice President, Chief Financial
Officer 2010 - Compensation Plan.  I have read and understand and
accept employment under the terms and conditions set forth therein.

    


    
      
        	
                /s/Ben
      Naccarato

              	 
      	
                3/2/2010

              	 
      
	
                /s/Ben
      Naccarato

              	 
      	
                Date

              	 
      
	 
      	 
      	 
      	 
      
	
                /s/Mark
      Zwecker

              	 
      	
                3/2/2010

              	 
      
	
                /s/
      Board of Director

              	 
      	
                Date

              	 
      


      

    

    


    Vice
President CFO 2010 Incentive Plan

    3/3/2010