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                                                                   EXHIBIT 10.23

                               MANAGEMENT CONTRACT

               Drafted and signed in Jerusalem on 13 December 1999

Between:  PARK MEIR MANAGEMENT COMPANY LTD.
          27 Hamered St., Tel Aviv (in the offices of Isras)
          (hereinafter "THE COMPANY")

And:      BRT BIOPHARMACEUTICALS LTD.
          216 Jaffa Road, Jerusalem
          (hereinafter "THE TENANT")

Whereas   The Tenant has leased unit B/3/101 in Building B in the Ramot Meir
          project, Har Hotzvim, Jerusalem, in accordance with a tenancy
          agreement dated 13 December 1999 with "the Owner" (as this is defined
          below);

And whereas  The Company has been designated by the Owner as the management and
          maintenance company of the Project (as this is defined below) and
          accepts responsibility for providing the Project with management and
          maintenance services as specified in this contract;

And whereas  The Tenant agrees that the management and maintenance services for
          the Project specified in this contract will be provided by the
          Company;

And whereas  This contract arranges the mutual obligations of the parties in
          everything concerning the provision and receipt of management and
          maintenance services in the Project and everything concerning the
          Tenant's participation in the management and maintenance costs;

And whereas  The parties have agreed on all conditions and undertakings with
          regard to the management and maintenance of the Project;

NOW THEREFORE BE IT AGREED, STIPULATED, AND DECLARED AS FOLLOWS:

1.   INTRODUCTION

     1.1  The preamble to this agreement is an integral part thereof.

     1.2  The headings and names given to the sections of this contract have
          been inserted to facilitate reading the agreement and are not part of
          the contract and will not be used to interpret the contract.

2.   INTERPRETATION AND DEFINITIONS

     In this contract, the following terms shall be given the meanings listed
     alongside them, as follows:
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THE OWNER             Har Hotzvim Properties Ltd.

TENANCY AGREEMENT     The tenancy agreement dated 13 December 1999 between the
                      Tenant and the Owner

THE PROJECT           The Ramot Meir project, being erected on the land known as
                      parcel 110 in block 3241, in the Har Hotzvim Industrial
                      Zone, Jerusalem, including everything built and existing
                      thereon, including all structures, buildings, wings, car
                      parks, and open areas, and every area, installation, and
                      system on the property whether existing on the day of the
                      signing of this contract or such as may exist in the
                      future. A sketch of the project is attached to this
                      contract as an integral part thereof and designated
                      Appendix A. Marked on the sketch are Building A (existing
                      building), Building B (currently under construction),
                      Building C (currently in an advanced stage of planning),
                      and Building D, planned to be erected in the future.

THE UNIT, THE UNITS   Each one of the units in the project in each one of the
                      buildings A, B, C, and D, according to the division that
                      has been made or will be made by the Owner, and that are
                      intended to be leased or assigned by the Owner. The Units
                      shall not include: the covered parking facilities in the
                      Project, as well as "the Management Company areas" and
                      "Public Areas," even if restricted usage rights to them
                      have been conveyed (such as kiosks for the sale of various
                      items).

PUBLIC AREAS          All of the areas (built up or otherwise) in the Project
                      and every building that is part of it (and every part
                      thereof) that are not "the Units" and are not "Management
                      Company areas" and are not the covered parking facilities
                      in the project. The definition of "public areas" Inter
                      will include, inter alia, the outside walls and roofs of
                      every building and structure in the project, all the
                      corridors, stairwells, elevators, open passageways and
                      corridors, open space, plazas and gardens, unroofed
                      parking spaces (if any); public services, shelters, paths,
                      and any system of the "project systems."

"MANAGEMENT COMPANY   Surfaces, spaces, meeting halls, rooms structures, and
AREAS"                parts of structures that are intended for the use of the
                      Company in the context of its provision of management and
                      maintenance services to the Project, including store
                      rooms, offices, cubicles, transformer, water, and
                      electricity rooms, and every other part of the project
                      used only by the Company.

"PROJECT SYSTEMS"     All of the systems and installations in the project that
                      are not specifically attached exclusively to a particular
                      unit or particular
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                      units (in part of a building), including main
                      air-conditioning systems and installations, electrical
                      systems, telecommunications, water, electromechanical
                      systems, control/monitoring systems, elevators, lighting
                      systems, and sewage and drainage systems.

"TENANT'S UNIT"       Unit No. _____ in Building B in the Project, which has
                      been leased to the Tenant by the Owner. It is agreed that
                      the area of the Tenant's Unit for the purposes of this
                      contract is 400 square meters.

"MANAGEMENT AND       Each of the mandatory services, optional services, and
MAINTENANCE SERVICES" special services enumerated in section 3 of the contract
                      and the other sections of the contract and every part
                      thereof.

3.   MANAGEMENT AND MAINTENANCE SERVICES

     3.1  The Company shall be responsible for performing, on its own or by
          means of outside contractors, each one of the following services
          (hereinafter "mandatory services"):

          3.1.1   Management and maintenance services, the operation, regular
                  upkeep, maintenance, management, restoration, and repair of
                  the public areas and project systems.

          3.1.2   Cleaning public areas, removing trash from main facilities,
                  gardening and irrigation, lighting, services to improve the
                  appearance of the public areas, operation of public facilities
                  (lavatories).

          3.1.3   Activation and deactivation of systems (Project systems) in
                  accordance with the seasons of the year or hours and days, as
                  set by the Company.

          3.1.4   Insurance, as specified in section 10 below, and the payment
                  of deductibles on account thereof.

          3.1.5   The maintenance of a central office (including a telephone
                  line to it) where all topics of management and maintenance
                  services for the project will be coordinated. The office hours
                  shall be the working hours designated by the Company.

          3.1.6   The provision of each one of the above services and activities
                  in the Management Company areas.

     3.2  The company is entitled to provide, on its own or through outside
          contractors, each of the following services (hereinafter "optional
          services"):

          3.2.1   Security and monitoring services of the public areas, the
                  Management Company areas, and the project systems, including
                  surveillance of all traffic entering and leaving the Project.
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          3.2.2   Services and actions that are generally provided by the house
                  committee of a condominium, including the maintenance of order
                  in the Project and the drafting of bylaws for the Project.

          3.2.3   Central or distributed information services for the Project.
                  Surveillance of control/monitoring systems, public address and
                  alarm services, the locating of malfunctions, the locating of
                  fires and break-ins, etc.

          3.2.4   The erection of directional signs and main signs providing
                  directions to the various buildings and parts of the project,
                  as well as directional signs and identifying signs on the
                  buildings of the project, and the hanging of other signs,
                  including determination of the design, size, and location of
                  signs belonging to the various tenants of the project, as well
                  as maintenance and restoration of the signs in the project.

          3.2.5   Cleaning of the outside of the windows of the project.

          3.2.6   Operation, regular upkeep, preventive maintenance,
                  restoration, repair, and insurance of systems and facilities
                  that are shared by several units in the project.

          3.2.7   Provision of advertising services and erection of signs for
                  the Tenant in the project.

          3.2.8   Services in a matter required by law (or at the demand of
                  legally constituted authorities) relating to the project and
                  relating to any part thereof (but not relating to the units
                  themselves).

          3.2.9   Any other service in the project and any part thereof, in the
                  Management Company areas, in the public areas, and in the
                  project systems that the Company may, at its exclusive
                  discretion, decide to operate as a service that is required or
                  as a service that is related to the services that the Company
                  must or may provide.

     3.3  The Company shall be entitled (but not required) to provide each of
          the optional services enumerated in section 3.2 above, or any part
          thereof, at its discretion and at times it may determine, and it is
          agreed that the Tenant shall not interfere in any manner whatsoever
          with the ability of the Company to decide and to provide each of the
          optional services or any part thereof.

     3.4  It is agreed that the Tenant shall not request and shall not receive
          any service whatsoever of the type of services enumerated in section
          3.1 and section 3.2 other than from the Company.

     3.5  It is hereby emphasized that except for the services enumerated in
          sections 3.1 and 3.2 above, the company will engage (as optional
          services) in the management of the Ramot Meir project and the
          promotion of its interests. It may also rely on the service of outside
          service providers with regard to the management and
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          maintenance of the project, including bookkeeping, accountants,
          attorneys, planners, designers, engineering consultants, and insurance
          consultants, and any other outside service. Each one of these services
          provided to the Company shall be considered to be an "optional
          service" of the Company that is provided to the project.

     3.6  If water meters are not installed for the various units in the
          building where the Tenant's unit is located, according to a decision
          by the Owner, the Management Company shall collect on behalf of the
          Owner usage fees for water, as set pro rata for each unit. The pro
          rata water usage shall be determined on the basis of the overall water
          usage as indicated by the water meter of the building (in which the
          Tenant's unit is located), with this usage being divided among the
          units in proportion to the area assigned to each unit in the building.

          The aforesaid notwithstanding, should it become apparent to the Owner
          that the water usage by the units of the building is negligible and
          limited, the Owner shall be entitled to determine that the water
          supply to the units in the building will be computed as part of the
          mandatory services provided by the Company; and in this case the
          payments required for water usage by each of the units shall be deemed
          to be part of the "actual expenses," in accordance with section 6.1
          below, and will be included in the contributory share of the
          "expenditures of the Company" that the Tenant must pay under this
          contract.

4.   MANNER OF PROVISION OF THE SERVICES

     In order to implement the services that the Company is required or may
     provide, it shall operate as follows:

     4.1  The Company undertakes to staff its main office in the Project during
          working hours, which will be determined by it, in order to deal with
          requests by tenants.

     4.2  The Company undertakes to employ a person who will serve as service
          manager for the Project.

     4.3  The Company undertakes to set up, for the purpose of providing
          services under this agreement, teams of employees and/or teams of
          contractors and/or outside service providers who are professionals in
          each of the domain in which it is required to provide services.

     4.4  The Company shall organize an apparatus of employees and contractors
          in order to organize its services, including bookkeepers, clerical
          workers, supervisors, consultants, maintenance managers, and so on.

     4.5  The Company shall establish contractual relations with providers of
          repair services in everything connected with Project systems or some
          part thereof in order to receive periodic maintenance services.

     4.6  The Company, at its discretion, shall see to the maintenance of an
          inventory of spare parts for the Project systems that can be replaced
          with relative ease.
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     4.7  The Company (with the approval of the Owner) is entitled to draw up
          "project bylaws" that will set general rules for maintaining order and
          sound management of the Project. The "project bylaws" shall apply to
          all tenants in the project. The Company shall be entitled to amend and
          modify the project bylaws from time to time. In the context of the
          project bylaws the Company shall be entitled also to stipulate hours
          and times for the removal of trash, instructions concerning the design
          and location of signs, the appearance of building facades, modes of
          assuring order and cleanliness, and so on.

     4.8  The regular maintenance services, cleaning services, and other
          services shall be provided by the Company during regular working
          hours, with a frequency and rate set at the discretion of the Company
          or the Owner, while scrupulously maintaining the clean and attractive
          appearance of the public areas.

     4.9  The Company or the Owner is entitled to specify hours and days for the
          operation of the central air-conditioning systems in the public areas
          and other central air-conditioning systems.

     4.10 The lighting systems in the public areas inside the buildings and the
          project will be operated such that these will be illuminated in
          reasonable fashion during daytime and nighttime hours to an extent to
          be determined by the Company. The outside lighting systems will be
          operated during nighttime hours in a scope to be determined by the
          Company.

     4.11 Maintenance work, repairs, replacement of parts, and engineering work
          shall be performed within a reasonable lapse of time and during
          regular working hours, but in exceptional cases these will be
          performed during hours when there is no activity in the Project that
          might be disturbed as a result of the work.

     4.12 The wages, conditions, and remuneration that the Company will extend
          to its employees, contractors, and outside service providers shall be
          reasonable and in accordance with the normal practice.

     4.13 The Company shall be entitled to remove any sign, advertisement, or
          installation of the Tenant's that was erected or designed without the
          Company's agreement.

     4.14 It is hereby made clear that even if the Company provides (itself or
          by means of outside contractors) security and surveillance services,
          it shall not be considered to be the "watchman" of the Tenant's unit
          or the units in the project (and their content) or of the project for
          the purposes of the Watchmen's Law 5727-1967, and the Company shall
          not bear the responsibility under this law. The purpose of the
          surveillance and supervision shall be in the domain of maintaining
          order in the project. Any tenant or unit that requires security
          services will have to see to them on its own.

     4.15 It is hereby made clear that at the discretion of the Company and its
          determination, various systems of the Project systems and various
          services of the management and maintenance services will not be
          provided and will not be performed in hours that
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          are not regular working hours (8 A.M. to 6 P.M.) on weekdays and 8
          A.M. to 1 P.M. on Fridays and festival eves). Should the Tenant
          request the operation of some of these systems or to receive a Company
          service during hours that are not the aforesaid hours, then, if the
          Company is willing to comply with the Tenant's request, the Tenant
          shall be required to make a special payment to the Company for such,
          in accordance with a tariff that the Company may set from time to
          time. Such service and the operation of systems as stated shall be
          considered to be a special service to the Tenant.

     4.16 The Tenant takes note of the fact that is possible that from time to
          time, intentionally or unintentionally, as a result of the services of
          the Management Company or as a result of some other factor, there may
          be the suspensions, disruptions, delays, and malfunctions in anything
          associated with the supply of electricity, water, generators,
          elevators, air-conditioning, maintenance services, security, and
          anything else associated with the Company's services. The Tenant
          undertakes not to demand any compensation or indemnification from the
          Company (and/or from the Owner) on account of such and shall not
          demand any restitution or compensation on their account. The Company
          affirms that it will act to the best of its ability to take all
          reasonable steps that may be required, to the extent possible, to
          prevent and limit malfunctions as stated.

5.   OBLIGATIONS OF THE TENANT

     The Tenant hereby commits itself vis-a-vis the Company, in addition to all
     other obligations under the contract, as follows:

     5.1  Not to commission services enumerated in this contract from any party
          other than the Company and not to receive the services enumerated in
          this contract from any party other than the Company; and this both in
          everything associated with the area of the units as well as in
          everything associated with the other areas of the project and
          everything associated with any of the system in the Tenant's unit and
          Project systems; all in accordance with the provisions of sections 3.4
          and 3.5 above.

     5.2  To refrain from any act of commission or omission that is likely to
          interfere with the Company's ability to meet its obligations under
          this contract or under management contracts signed with other parties,
          and to refrain from any act of commission or omission that is likely
          to interfere with the Company's ability to provide any service of the
          services under this contract. The Tenant further undertakes to abide
          by the provisions of the project bylaws that may be determined by the
          Company (and as they may be amended from time to time); the Tenant
          undertakes not to place installations, equipment, trash, crates, or
          any other object outside the area of the Tenant's unit and not to put
          up any signs whatsoever that have not been approved by the Company;
          the Tenant further undertakes to cooperate with the Company and its
          representatives in every matter associated with the services of the
          Company and to comply with their requests.
<PAGE>

     5.3  To permit the Company and anyone referred by it enter the Tenant's
          unit during working hours (or at other times if so agreed by the
          parties) in order to provide any of the services under this agreement
          (and this both with regard to services that the management company
          must provide to the Tenant or some other tenant in the project as well
          as with regard to services that related to the Project and public
          areas, including roofs and outside walls).

     5.4  To pay to the Company its "contributory share" in the "expenditures of
          the Company" on the dates and in the amounts stipulated in section 6
          below and anywhere else in the contract. It is agreed that this
          obligation of the Tenant's is absolute and unaffected if it does not
          actually occupy the "tenant's unit" or does not use it or the public
          areas or the Project systems or any part thereof or if it does not
          benefit from the services of the Company or does not receive them for
          any reason whatsoever.

     5.5  To deposit with the Company a bank guarantee as security for payment
          of the contributory share by the Tenant, in accordance with section
          6.6 below.

     5.6  The Tenant undertakes to pay to the Company the remuneration to which
          it is entitled under this contract with regard to any service that the
          Company may provide to the Tenant or with relation to its unit. The
          remuneration shall be paid to the Company at a time to be determined
          by the Company.

     5.7  To pay to the Company Value Added Tax in addition to any payment that
          it must make to the Company under the agreement.

     5.8  The Tenant confirms and agrees that the Company (or someone designated
          by it) shall constitute the "house committee" if the project or some
          part thereof is registered as a condominium.

6.   CONTRIBUTORY SHARE IN THE EXPENDITURES OF THE COMPANY

     6.1  In the present section and in the present contract the following terms
          shall have the meaning as indicated:

          "EXISTING UNITS" - All of the units (including the Tenant's unit) that
          already existed in the Project and in any part thereof at the time of
          the provision of management and maintenance services by the Company
          under the present contract, which are units in which all work has been
          completed and they are fit for operation for their intended purpose,
          even if they have not yet been occupied. This does not however include
          the parking facilities in the project and does not include the
          Management Company areas and public areas.

          By way of sound practice it is hereby made plain and agreed that an
          "existing unit" that has not yet been leased out by the Owner as well
          as an "existing unit" that has been vacated by its lessee or tenant
          (other than the Owner) shall not be considered to be an "existing
          unit" or one of the "existing units," and no contributory share shall
          be paid on account of such a unit and the "proportional share" as
          stipulated below shall
<PAGE>

          be computed without this unit. However, if as a result of the
          nonleasing by the Owner or as the result of the vacating of the unit
          or units by their tenants or occupiers (other than the Owner) the area
          of "existing units" falls below 75% of the total area of the units
          that were fit to be included as "existing units" were it not for the
          nonleasing or vacating thereof, the Owner shall pay the contributory
          share in the expenditures of the company (as stipulated below) on
          account of areas to make up the 75% (seventy-five percent) stated
          above. The Owner shall not be responsible for any contributory share
          in the event that the area of the "existing units" (without units that
          have not yet been leased or have been vacated as stated) exceeds 75%
          of the area of the units that are fit to be included as existing
          units.

          "ACTUAL EXPENDITURES" - All expenditures without exception made by the
          Company, including those associated with the provision of mandatory
          services and optional services, whether fixed or variable, as well as
          all expenditures made by the Company on account of the areas of the
          covered parking facilities in the project (Buildings B and C) and on
          account of their operation; without detracting from the stated
          provisions, it is agreed that "actual expenditures" shall be also and
          include the salaries of its employees who are associated with the
          provision of the services (and including social benefits and ancillary
          conditions), payments to contractors and subcontractors, outlays for
          the purchase of materials, equipment, facilities, and media (including
          the overhaul and/or replacement of equipment, facilities, and
          accessories as needed), all as may be required in order to provide
          management and maintenance services as well as outlays to lease and
          maintain the Company's office and storerooms in the Project, financing
          costs (including on account of the services, on account of the
          equipment, and on account of fixed assets), depreciation and
          [translated as written] on equipment and facilities, motor vehicle
          maintenance, insurance, payments under deductible clauses, payment of
          taxes, municipal rates, and other mandatory payments that relate to
          the public areas, the covered parking facilities, the Management
          Company areas, and Company services (excluding taxes and mandatory
          payments on Company profits), as well as a closed reserve fund for the
          overhaul and/or replacement of equipment, facilities, and accessories,
          as well as the fees of the accountant and bookkeepers (who audit and
          maintain the Company's books and the accounts that will be submitted
          to the holders of the units), as well as general administrative
          expenditures and the like, legal expense, and fees to attorneys and
          other service providers. "Actual expenditures" shall also include
          future obligations of the Company related to any matter enumerated
          above.

          "PROPORTIONAL SHARE" - A share to be computed on the basis of the
          ratio between the area of the Tenant's unit and the overall area of
          all the "existing units" at that time in the project and every part
          thereof. The area of the Tenant's unit and the overall area of all the
          existing units are computed according to the key determined by the
          Owner and that will be displayed in the offices of the Management
          Company.

          "EXPENDITURES OF THE COMPANY"" - means the Actual Expenditures plus
          15% of the Actual Expenditures.
<PAGE>

     6.2  The Tenant undertakes to pay the Company its share of the
          "expenditures of the Company"; this shall be the proportional share
          (based on the "Tenant's unit") of the "expenditures of the Company"
          (above and hereinafter "the contributory share"). The Tenant
          undertakes to pay the Company its contributory share starting on 1
          March 2000 and to continue paying it until the day on which it
          actually restores possession of the Tenant's unit to the Owner, in the
          manner and method stipulated in the tenancy agreement between the
          Tenant and the Owner.

     6.3  The Tenant shall pay its contributory share in the "expenditures of
          the Company" in quarterly payments, every three months in advance. The
          Company shall determine from time to time a realistic and cautious
          estimate of the anticipated "expenditures of the Company" (hereinafter
          "the estimate"), and the quarterly payments will be set provisionally
          on the basis of this estimate.

          It is agreed that these payments shall be made each year on the first
          day of the months of January, April, July, and October.

     6.4  From time to time (but at least once a year) the Company will examine
          the actual expenditures really made vis-a-vis the estimate and draw up
          an "updated expenditure report" for the period of the estimate. Should
          it become clear that the estimate was lower than its real expenditures
          (as presented in the updated expenditures report), it will send the
          Tenant a bill to cover the difference; the Tenant undertakes to pay
          this bill to the Company on the first date thereafter stipulated for
          the payment of the quarterly contributory share.

          Should it become apparent from the updated expenditures report that
          the quarterly payments (under section 6.3) were greater than the
          amount that the Tenant should have paid, the Tenant's account with the
          Company will be credited as of the first day thereafter stipulated for
          the payment of the quarterly contributory share.

     6.5  To the differentials according to section 6.4 above will be added
          linkage differentials to the Consumer Price Index, to be computed with
          regard to each month in the period covered by the "updated
          expenditures report."

     6.6  To guarantee payment of the contributory share in the "expenditures of
          the Company," the Tenant conveys to the Company an independent bank
          guarantee in the amount of NIS 29,000 (twenty-nine thousand New
          Israeli Sheqels) (including 17% Value Added Tax). The guarantee shall
          be index-linked (base index 106.8 points, published on 15 November
          1999). The guarantee shall be phrased as in the sample in Appendix E
          to the Tenant's tenancy agreement with the Owner.

          The Tenant undertakes not to take any step whatsoever to hinder the
          ability of the Company to cash the bank guarantee.

          The Tenant undertakes that the Company will always be in possession of
          a bank guarantee of the stated type and in the event that the Company
          cashes the guarantee in its possession, or any part thereof, the
          Tenant undertakes to make up the amount of the guarantee or to provide
          a new bank guarantee as stated.
<PAGE>

     6.7  It is agreed that the Company alone shall be entitled to any income or
          any revenue that the Company may have other than in relation to the
          provision of mandatory services (section 3.1 above) and other than in
          relation to the optional services (section 3.2 above). Any revenue or
          income as stated shall not be offset against the Actual Expenditures.

     6.8  It is agreed that the provisions of the present contract in general
          and the provisions of the present section 6 in particular shall always
          be interpreted in such fashion that there will not be imposed on the
          Company any input or cost with relation to its services under the
          present contract and that all its expenditures plus 15% as stated will
          be covered by the tenants (including the Owner if it is in possession
          of an existing unit on account of which it is obligated to bear a
          "contributory share" as stated in section 6.1 (second paragraph of the
          definition of "existing units").

     6.9  In the event of any ambiguity or disagreement concerning the
          assignment of any service or expenditure, the service and expenditure
          shall be included as "actual expenditures."

7.   BOOKKEEPING

     7.1  The Company undertakes to maintain separate books of account relating
          to "actual expenditures," its services, and its activities in the
          project. The Company will also maintain a ledger card for each unit in
          the project. The books of account will be audited and approved by an
          accountant to be designated by the Company for this purpose.

     7.2  In accordance with arrangements to be determined by the Company, the
          Tenant will be entitled to receive from the Company and the accountant
          explanations about everything related to the books of account and
          documents that relate to the "actual expenditures."

8.   DELINQUENCY AND LINKAGE

     8.1  Without detracting from any right that the Company may have under this
          contract and any legal provision on account of breach of the contract,
          it is agreed that any case in which the Tenant is delinquent in
          payment of any sum that it owes to the Company under the present
          contract, the Tenant shall pay to the Company that amount linked to
          the index, as stipulated in the present contract (and if with regard
          to the sum there is no base index, the "base index" for this amount
          shall be the known index on the day when the Tenant was supposed to
          have paid the amount), plus arrears index at a rate that is twice the
          interest rate (including fees and expenses) charged by Bank Hapoalim,
          Ltd., (Main Tel Aviv branch) on authorized overdraft (hahad) accounts
          for nonpreferred customers,, with this arrears interest being computed
          by the method and manner whereby Bank Hapoalim, Ltd., computes during
          the period of the arrears (including compound interest).
<PAGE>

     8.2  The Company reserves the right to stipulate that the amount in arrears
          will be paid plus linkage differentials and 12% annual interest (it
          too index linked), instead of the interest stipulated in section 8.1
          above.

     8.3  In the present contract, "indexation" means linkage to the Consumer
          Price Index published by the Central Bureau of Statistics and Economic
          Research. The computation of linkage according to the present contract
          shall be made according to the "known index."

     8.4  Revenues from arrears interest or linkage (sections 8.1 and 8.2 above)
          shall not be offset against the amount of the "actual expenditures."

9.   MISCELLANEOUS

     9.1  A Tenant who has rights of possession (lessee or sublessee) in a unit
          in the "buildings" shall not be entitled to transfer its rights in the
          unit unless it has paid all its debts on account of the contributory
          share in the "expenditures of the Company" and on condition that the
          party that receives its rights conclude a management contract with the
          Company. The management contract, in this case, will be recorded in
          the land registry office as a condition of the lease.

     9.2  The Tenant affirms that in the event that it violates terms of the
          present contract it will be considered to have violated its agreement
          with the Owner and gives an irrevocable instruction to the Owner to
          act according to the provisions of that agreement that deal with
          breach of the agreement (including cashing of guarantees and
          cancellation of the agreement).

     9.3  With the signing of this management contract the Owner is seen to have
          carried out all of its obligations vis-a-vis the Tenant in everything
          associated with management and maintenance of the Project. It is
          further agreed that in everything connected with management,
          maintenance, and the provision of services under the tenancy agreement
          only the provisions of the present contract shall apply and only with
          regard to the Tenant and the Company.

     9.4  The Company is entitled to transfer its liabilities and rights under
          this management contract to another party to be determined by the
          Owner and is entitled to meet its obligations (in a whole or in part)
          by means of contractors and by means of outside service providers.

     9.5  Deposits and funds belonging to the Tenant that may be held by the
          Company, if any, shall not be included in the system of accounts under
          section 7.1 above. Income and expenditures related to such deposits
          and funds shall be at the responsibility or to the credit of the
          company along.

     9.6  It is agreed that the Company is entitled to require the Tenant to
          make any repair in the Tenant's unit and any repair of a system or
          installation associated with its unit or associated with particular
          units including the Tenant's unit; the Company is further entitled to
          determine that it will perform the required repairs as stated at its
          own
<PAGE>

          initiative and without the separate consent of the Tenant. Every
          service of this sort by the Company shall be deemed vis-a-vis the
          Tenant to be a service provided to it on a private basis and at its
          commission, and the Tenant shall be obligated to pay the Company on
          demand the rate (or price) of the repair.

     9.7  With the approval of the Owner, the Company is entitled to determine
          that the costs and expenditures related to the covered parking
          facilities, in whole or in part, will not be included in the "actual
          expenditures." The Tenant shall not, however, be entitled to impose
          this upon the Company in any fashion whatsoever.

10.  INSURANCE

     The Company undertakes to take out insurance as stated in section 3.1.4 and
     to take out each one of the policies listed below and in accordance with
     the following provisions:

     10.1 The Company will take out the "Company insurance" as detailed in
          section 11 (and in Appendix E) to the tenancy agreement.

          To avoid any doubt it is made plain that the Tenant will take out the
          insurance required of it in section 11 of the tenancy agreement.

     10.2 To take out additional insurance at the discretion of the Company and
          to reduce such insurance or a portion thereof at the discretion of the
          Company.

     10.3 Insurance premiums and every other outlay that the Company and Owner
          may have in connection with the "Company insurance" (under Appendix E
          to the tenancy agreement) and in connection with other insurance taken
          out by the Company and/or by the Owner shall be considered to be
          "actual expenditures" for the purposes of section 6 above.

11.  ADDRESSES AND NOTIFICATIONS

     The Company's address for any matter related to this management contract is
     the management office in the project.

     The Tenant's address is the Tenant's unit.

     Any notice from one party to the other sent by registered mail shall be
     considered to have reached its address within 72 hours of its conveyance
     for delivery by registered mail, and a written notice delivered by hand
     shall be considered to have reached its destination 24 hours after its
     delivery.

12.  SPECIAL REMEDY IN THE EVENT OF A BREACH OF AGREEMENT BY THE TENANT

     In addition to every right available to the Owner and the Company, it is
     agreed that in the event of a breach of contract by the Tenant the Company
     shall be entitled to suspend the provision of its services to the Tenant,
     in a whole or in part, without thereby detracting from the obligation of
     the Tenant to continue to pay its contributory share in the
<PAGE>

     expenditures of the Company. In the context of this suspension of service
     the Company will be entitled to deny the Tenant use of portions of the
     public areas, including elevators, stairwells, air-conditioning, lighting,
     and more.

13.  TERM OF THE AGREEMENT

     The present contract takes effect on the date of its signing by the parties
     and shall remain in effect as long as the Tenant is a lessee or sublessee
     of its unit. In the case that the Tenant is leasing the unit from the
     Owner, the present contract shall remain in effect as long as the Tenant
     retains possession of the Tenant's unit or as long as the lease remains in
     effect (which ever is later).

     The Company shall return to the Tenant the bank guarantees or any sum that
     may remain in the hands of Company after it has been cashed only after the
     Tenant has paid off all debts to the Company, including its debts until the
     end of the contract term that may be discovered later with the
     determination of its real actual expenditures (according to the first
     paragraph of section 6.4 above).

14.  Notwithstanding what may be stated anywhere in the contract or the tenancy
     agreement, the Tenant shall not be entitled to offset any obligation that
     it may have vis-a-vis the Company or vis-a-vis the Owner against any
     obligation or debt that the Company or the Owner may have vis-a-vis the
     Tenant under the contract and/or under any contract or other obligation in
     general and under the tenancy agreement in particular. The Tenant's
     obligation under this management contract is independent and absolute and
     the Tenant shall be obligated to satisfy them unconditionally, and there
     shall be no reduction thereof for any cause whatsoever even if the Tenant
     has financial or other rights vis-a-vis the Owner or vis-a-vis the Company
     or vis-a-vis other parties on account of any matter including on account of
     the contract, on account of the tenancy agreement, on account of the
     project, or anything related thereto.

15.  The Company affirms that it has read the tenancy agreement and agrees with
     its provisions.

IN WITNESS WHEREOF THE PARTIES HAVE AFFIXED THEIR SIGNATURES, TODAY, 13 DECEMBER
1999, IN JERUSALEM.

[company stamp:                      [company stamp:
Park Meir Management Company Ltd.]   BRT Biopharmaceuticals Ltd.]
[signatures:  ?? & ??]               [signatures:  Moshe Laster & Ira Weinstein]

           THE COMPANY                            THE TENANT

[Writ of guarantee crossed out and not translated]
<PAGE>

Name:  BRT
Address:

[added by hand] copy

To:
Bank Leumi le-Israel Ltd.
Branch:  Mahane Yehuda

                                                                  Date: 15/12/99

[stamp:  Bank Leumi Le-Israel Ltd.
Business Branch - Mahane Yehuda, Jerusalem
15-12-1999
913 RECEIVED 913]
                        Re: REQUEST TO ISSUE A GUARANTEE

Please issue a guarantee/obligation (hereinafter "the guarantee") in accordance
with the following form and details:

1.   Name of beneficiary: Har Hotzvim Properties Ltd. (indicate the name of the
     person or corporation that will be the beneficiary of the guarantee)

2.   Address of the beneficiary

3.   Amount of the guarantee:  29,000--

4.   Name of maker: BRT Biopharmaceuticals Ltd. (indicate the name of the person
     or corporation on whose behalf the guarantee will be issued)

5.   With reference to:  compliance with a management contract

6.   Validity of the guarantee: 31/3/2001 (indicate the date to be inscribed on
     the guarantee as the last date for reception of the demand by the bank)

7.   Indexation terms:  Consumer Price Index 10/99

8.   Remarks:

The commission for the guarantee shall be at the rate of 2.6% per annum of the
amount of the guarantee (including interest, indexation differentials, or
exchange-rate differentials, if any) but in no case less than the sum of
NIS___*.

Please debit thereupon our account with your number 121600/19.

In addition, we are aware that we will be charged a commission for drafting
documents in the amount of NIS 100.

What is stated in the obligation we have signed for you with relation to the
issuance of the guarantee and/or indemnity by you shall also apply to the above
the guarantee (and to extensions of its validity if any).

*minimum commission as this appears in the list of commissions.

[company stamp:  Park Meir Management Co. Ltd.]   [signature] IRA WEINSTEIN
                                                  [company stamp:  BRT
                                                     Biopharmaceuticals Ltd.}

                                                          Customer's Signature

--------------------------------------------------------------------------------
For use by the branch

Guarantee No.              File No. _____

Total obligo in guarantees _______  Approval by branch management ________

Securities offered ________         Approval by district management, dated _____

Remember that the customer must sign (on the copy of the guarantee that remains
in the branch) the guarantee document.
<PAGE>

 [Protocol of a Meeting of the Board of Directors - in English, not translated]
<PAGE>

             SPECIAL APPENDIX TO THE TENANCY AGREEMENT/REMEASUREMENT

LEASED PREMISES:  UNIT NO. _____

LESSOR:           HAR HOTZVIM PROPERTIES LTD.

LESSEE:           BRT BIOPHARMACEUTICALS LTD.

1.   In everything related to the area of the leased premises, as stated in
     section 1.2.4 of the tenancy agreement signed by the parties, the parties
     agree that after conveyance of possession of the leased premises the lessor
     will perform a measurement of the net area of the leased premises.

2.   The "net area of the leased premises" means: the area of the leased
     premises including the entire area of the leased premises enclosed by the
     outside walls of the eased premises, including the area of the
     cross-section of the outside walls of the building and including the area
     of the cross section of the outside wall of the leased premises located in
     the interior of the building; but an outside wall shared with other leased
     premises (and only other leased premises) shall be computed at one-half of
     the area of its cross section. (The term "cross section" refers to a
     horizontal cross section at the level of the floor.)

     The "net area of the leased premises" shall be the basis for the
     computation of the agreed area of the leased premises for the purpose of
     the tenancy agreement and for the purpose of section 1.2.4 of the tenancy
     agreement.

     It is agreed that the "gross area of the leased premises"--namely, the area
     that will be computed as the agreed area of the leased premises for the
     purpose of the tenancy agreement, shall be that area such that subtracting
     18% from it yields an area equal to the "net area of the leased premises."

     For example: if the "net area of the leased premises" is 1,230 square
     meters, then the "gross area of the leased premises" is 1,500 square
     meters.

3.   "The gross area of the leased premises" obtained through the computation in
     this special appendix shall be the agreed-upon area that shall be
     considered to be included in section 1.2.4 of the tenancy agreement; and
     this in-place of the area currently stated in the tenancy agreement.

4.   The amounts of the monthly rent as well as the amounts of the promissory
     notes in the tenancy agreement shall be modified in accordance with the
     change in the "gross area of the leased premises" and in proportional
     fashion.

5.   The lessee undertakes to convey to the lessor new promissory notes
     according to the principles of the tenancy agreement, in their new value,
     should it become apparent that there is a change in the "gross area of the
     leased premises" as stated above. This provision is a principal condition
     of the tenancy agreement.
<PAGE>

     Until the lessee conveys to the lessor new promissory notes as stated, the
     lessor shall present for payment the promissory notes in its possession at
     that time and the lessee shall have no right to protest.

6.   Following the measurement and modification of the "gross area of the leased
     premises" as stated, if there is one, the lessor shall issue written
     notification to the lessee concerning the amendment of the relevant
     sections in the tenancy agreement, and this notice by the lessor shall bind
     the parties and shall be an integral and binding part of the tenancy
     agreement.

7.   The lessee reserves the right to challenge, within one month, a
     notification by the lessor under section 6 above, in the form of the
     submission of a competing measurement of the "net area of the leased
     premises" performed (at the lessee's expense) by a qualified surveyor. The
     dispute shall be resolved by the surveyor on behalf of the lessor and the
     surveyor on behalf of the lessee (each party shall bear the costs and fee
     of its surveyor); and in accordance with the ruling on the disagreement a
     new notification (according to section 6) shall be issued by the lessor. As
     long as the dispute has not been resolved, the original notice by the
     lessor under section 6 above shall continue to apply.

8.   This special appendix is an integral part of the tenancy agreement.

IN WITNESS WHEREOF THE PARTIES HAVE AFFIXED THEIR SIGNATURES

TODAY, 13 DECEMBER 1999, IN JERUSALEM

[company stamp:                            [signature:]
Har Hotzvim Properties, Ltd.]
[signatures:  ?? & ??]

            LESSOR                                    LESSEE
<PAGE>

                                  APPENDIX A-1

[captions]

Building A                   Building C                     Building D

                             Building B

Boundary                                                          Boundary
of the lot                                                        of the lot
<PAGE>

                          APPENDIX A-2 [ADDED BY HAND]

[captions]

                   Area 368 sq. m.           Area 353 sq. m.

                   Area 400.2 sq. m.         Area 406 sq. m.
<PAGE>

                                                             Our reference: 2050
                                                                      Appendix B

                                  TENANT AREAS

1.   FLOOR:

     o    Finish:  smooth concrete

     o    Height of industrial story about 4.60 meters (from concrete floor to
          concrete ceiling). Not relevant for Emultek

     o    Height of office story about 3.60 meters (from concrete floor to
          concrete ceiling)

     o    Maximum load capacity of floor - 630 kg/square meter

2.   SHELL WALLS:

     o    Outside walls of concrete block and/or curtain walls, ready for
          plastering by lessee

     o    Outside walls finished in dressed stone and/or aluminum, depending on
          architect's plans

3.   CENTRAL AIR-CONDITIONING UNIT:

     o    air-conditioning system for entire building based on chilled water
          unit with air condenser

     o    Chilled water supplied to coilpipe bellows units and air treatment
          units

     o    Boiler room--heating energy center will provide hot water to heat the
          system

     o    Four-pipe air-conditioning system--two pipes for cold water and two
          pipes for hot water

     o    All air-conditioning installations in the leased premises (planning
          and implementation) will be handled by the Tenant and will include
          connection to the cold and hot water lines located in the public
          central shaft.

     o    The plans must be approved by the lessor before the start of work.

     o    The lessee will have the air-conditioning work done by Calorit Ltd.

     o    Clean air for the coilpipe bellows units will be provided to the
          Tenant from the existing conduit in the floor shaft.

     o    Exhaust from lavatories--the Tenant will hook up to the existing
          ventilation conduit in the central shaft.
<PAGE>

4.   PLUMBING AND SPRINKLER SYSTEM:

     o    All sanitary systems will rely on gravity flow except for the floor of
          the lower basement.

     o    Infrastructure for vertical wastewater pipes exists alongside some of
          the pillars in the leased premises areas on each floor, as marked in
          the blueprints.

     o    There are also sumps (at locations marked on the sketch) for
          air-conditioning drainage.

     o    The water supply system is based on the municipal system.

     o    There are water lines on each floor in the public shafts. The lessee
          will hook up to these lines.

     o    There are water reservoirs in the central shafts for the sprinklers
          and hydrants only--hook-up by the lessee.

     o    The main water lines are alongside the central shafts with
          infrastructure for water meters--hook-up by the lessee.

     o    The lessee will be responsible for having the plumbing and sprinkler
          system work done by Calorit Ltd.

     o    Sprinklers--the main line for the sprinklers is in the central shaft;
          the lessee will hook up to this line.

5.   ELECTRICITY:

     o    The electrical system is based on the Electric Company's network of
          distribution cables throughout the building. On each floor, in the
          central core, there is a cabinet of the appropriate size for
          installing electric meters for the tenants. Hook-up by the lessee.

     o    Every lessee will have its own hook-up to the Electric Company and
          will sign a contract with the Electric Company and have a meter
          installed.

     o    The capacity of the hook-up allocated to the lessee is 0.25 amperes
          per square meter; if the lessee wishes to increase this it must bear
          the added expense.

     o    The lessee will have the electrical work in the leased premises
          performed by Sharon Ltd. The work for which the lessee is responsible
          will include, inter alia, the connection as far as the meter that will
          be installed in the central shaft.

6.   MISCELLANEOUS:

     a.   All plans must be approved by the lessor before the start of work.

     b.   The facades of leased premises that face public areas must be approved
          by the architect.

     c.   Plans for the internal division of space drawn up by the lessee must
          meet the demands of standards, including safety standards.
<PAGE>

                                          Appendix B (continued) [added by hand]

       Work to be performed by the lessor in the office area of the lessee
                                [added by hand]

                  TECHNICAL SPECIFICATION FOR THE TENANT'S AREA

We shall make the following modifications to the leased premises.

a.   Floor:  fire-resistant carpeting at a base price of $12 per square meter

b.   Rando Fisher 6 x 60 acoustic ceiling--base price, $4 per square meter

c.   Plaster walls including 2" insulation

d.   Decorel doors with honeycomb fill and Fournir veneer--up to 20 units

e.   Walls--Superacril white paint

f.   Lavatories--minimum standard

g.   Kitchenette--three meters long, with marble countertop and sink

h.   Installation of sprinkler system

i.   Electricity - 2 x 36 W parabolic lighting fixtures
     3 x 160A main electric panel
     50 electric outlets and infrastructure for 25 computer/telephone outlets

j.   air-conditioning--hook up to central system in accordance with plans as
     provided by the air-conditioning consultant for the building
<PAGE>

                                          Appendix B (continued) [added by hand]

              TECHNICAL SPECIFICATION FOR BUILDING B - PUBLIC AREAS

1.   STAIRWELLS:

     o    Marble flooring

     o    Stone and plaster walls

2.   FOYER ON FLOOR:

     o    Marble flooring and wall paneling

     o    Metal and/or wood cabinets

     o    Mineral and/or metal acoustic ceilings, including recesses, and
          fluorescent lighting

3.   FLOOR DIMENSIONS:

     o    Terrazzo tile flooring

     o    Walls and ceiling--Tambourtex and/or Polycid paint

4.   CENTRAL SHAFTS:

     o    Intended to carry systems (air-conditioning, sprinkler system,
          plumbing, electricity, and telecommunications). The lessee will lay
          the systems of the leased premises as far as the shaft. The work will
          be planned and carried out in coordination with and after approval by
          the lessor.

5.   ROOFS AND BALCONIES:

     o    Waterproofing including thermal insulation

     o    Balconies with stone and/or marble paving

6.   OUTSIDE SHELL:

     o    Combination of concrete walls including dressed stone facing and
          thermal insulation with a total thickness of about 30 cm and glass and
          aluminum curtain walls according to architect's plans

7.   PARKING FACILITIES:

     o    Smooth concrete floor

     o    Full parking facility illumination

     o    Fire extinguisher and hydrant system in accordance with safety
          requirements
<PAGE>

8.   DEVELOPMENT:

     o    Asphalt pavement combined with another material such as tiled stones

     o    Central trash facility

     o    Outside lighting in accordance with specifications of electrical
          consultant

     o    Loading and unloading bays on first and second stories (Building B
          only)

9.   CENTRAL ENERGY SYSTEMS:

     o    There is infrastructure in shafts for the lessee to hook up to the
          public systems (hook up to main sprinkler system, air-conditioning and
          heating lines)

     o    Central air-conditioning system (chillers) on roof of structure

     o    Emergency generator to backup public grid

     o    Central monitoring system to control public facilities

10.  ELEVATORS:

     o    Two elevators in each core--passenger elevator and dual use
          (passenger/freight) elevator

     o    Elevator cabin finished as determined by architect
<PAGE>

                   SPECIMEN [superimposed on document by hand]

                                                      Appendix D [added by hand]
                                                     Promissory note No. _______

                          INDEX-LINKED PROMISSORY NOTE

             Executed on the _____day of the month of _____, 199__.

1.   On the 01 day of the month of July, in the year 2000, we promise to pay to
     the order of Har Hotzvim Properties Ltd. (hereinafter "Har Hotzvim
     Properties"), corporation No. 51-168405-2, of 27 Hamered St. Tel Aviv, the
     sum of 64,449 new sheqels (sixty-four thousand four hundred forty-nine
     sheqels), linked (hereinafter together--"the amount"), as detailed below:

2.   The amount shall be linked to the Consumer Price Index (including fruits
     and vegetables) published from time to time by the Central Bureau of
     Statistics and Economic Research. The "base index" for this note is 106.8
     index for 10/99 and the "determining index" is the index that will be known
     on the actual day of payment of the note.

3.   If on the day of payment of this note the (new) determining index is higher
     than the base index, we shall pay Har Hotzvim Properties the amount of the
     note augmented proportionally to the rise in the "new" determining index as
     against the base index (hereinafter "linkage differentials"). To avoid all
     doubt it is hereby made clear that in any case the amount will not be
     reduced in the event that the "new" determining index is lower than the
     base index.

4.   If on the day of payment of this note there exists an obligation to pay
     Value Added Tax at its legal rate, the amount as defined in section I of
     this note above shall be supplemented by an additional amount on account of
     the Value Added Tax, plus linkage differentials on its account as well. In
     order to avoid all doubt we agree and affirm that the amount of Value Added
     Tax will be levied on the amount including the supplement on account of
     linkage differentials.

5.   We exempt the holder(s) of this note from any obligation of presentation
     and/or dispatch of and warnings or notices whatsoever.

                                Place of payment:

Bank:  10 Leumi                           Branch:  913 Mahane Yehuda
account 121600/19

                      Signatures of Executors of the Note:

Name:  BRT Biopharmaceuticals Ltd.        Name:
ID number:  51-285095-9                   ID number:
Address:  216 Jaffa Road, Jerusalem       Address:
             name and place address                 name and place address
Workplace:                                Workplace:
X Signature                               X Signature

We the undersigned guarantee, individually and collectively, the payment of this
note by the signatories. This guarantee shall not be affected adversely by the
grant of an extension or discounts to the signatories and/or to any guarantor
and/or to any endorser of this note. We individually and collectively hereby
waive any right to assert a claim of expiration or any other claim in connection
with this note, inter alia under the provisions of the Notes Ordinance and in
addition we hereby exempt the holder(s) of this note from any need to present
and/or send any warnings or notices whatsoever.

                            Signatures of Guarantors:

Name:                                     Name:
ID number:                                ID number:
Address:                                  Address:
             name and place address                 name and place address
Workplace:                                Workplace:
X Signature                               X Signature
<PAGE>

Name:  BRT
Address:

                        [stamp: Bank Leumi Le-Israel Ltd.
                   Business Branch - Mahane Yehuda, Jerusalem
                                   15-12-1999
                                913 RECEIVED 913]

To:
Bank Leumi le-Israel Ltd.
Branch:  Mahane Yehuda

                                                                   Date 15/12/99

                        Re: REQUEST TO ISSUE A GUARANTEE

Please issue a guarantee/obligation (hereinafter "the guarantee") in accordance
with the following form and details:

1.   Name of beneficiary: Har Hotzvim Properties Ltd. (indicate the name of the
     person or corporation that will be the beneficiary of the guarantee)

2.   Address of the beneficiary

3.   Amount of the guarantee:  122,000--

4.   Name of maker: BRT Biopharmaceuticals Ltd. (indicate the name of the person
     or corporation on whose behalf the guarantee will be issued)

5.   With reference to:  compliance with a tenancy contract

6.   Validity of the guarantee: 31/3/2001 (indicate the date to be inscribed on
     the guarantee as the last date for reception of the demand by the bank)

7.   Indexation terms:  Consumer Price Index 10/99

8.   Remarks:

The commission for the guarantee shall be at the rate of 2.6% per annum of the
amount of the guarantee (including interest, indexation differentials, or
exchange-rate differentials, if any) but in no case less than the sum of NIS
___*.

Please debit thereupon our account with you number 121600/19.

In addition, we are aware that we will be charged a commission for drafting
documents in the amount of NIS 350.

What is stated in the obligation we have signed for you with relation to the
issuance of the guarantee and/or indemnity by you shall also apply to the above
the guarantee (and to extensions of its validity if any).

*minimum commission as this appears in the list of commissions.

[company stamp:  Har Hotzvim Properties, Ltd.]    [signature} IRA WEINSTEIN
                                                  [company stamp:  BRT
                                                      Biopharmaceuticals Ltd.]

                                                         Customer's Signature

--------------------------------------------------------------------------------
For use by the branch

Guarantee No.     File No. _____

Total obligo in guarantees _______  Approval by branch management ________

Securities offered ________         Approval by district management, dated _____

Remember that the customer must sign (on the copy of the guarantee that remains
in the branch) the guarantee document.
<PAGE>

                          BRT BIOPHARMACEUTICALS, LTD.
               216 JAFFA ROAD, SHA'AREI HA'IR - JERUSALEM - 94383
                    Phone: 972-2-5374997 - Fax: 972-2-5375098

[stamp:  Bank Leumi Le-Israel Ltd.
Business Branch - Mahane Yehuda, Jerusalem
15-12-1999
913 RECEIVED 913]

14 December 1999

To:
Bank Leumi
Mahane Yehuda Branch
Jerusalem

Dear Sirs and Mesdames,
               Re:  promissory notes to the order of Har Hotzvim Properties Ltd.

Enclosed please find a list of the promissory notes that we have conveyed to the
Har Hotzvim Co., Ltd., on account of a tenancy agreement. We hereby give you an
irrevocable instruction to honor these notes on the date fixed for their payment
and to pay them from our account number 121600/19 maintained at your branch.

Sincerely,

[signature] Ira Weinstein
[signature] Moshe Laster
<PAGE>

                          BRT BIOPHARMACEUTICALS, LTD.
               216 JAFFA ROAD, SHA'AREI HA'IR - JERUSALEM - 94383
                    Phone: 972-2-5374997 - Fax: 972-2-5375098

Promissory notes to be honored:

NUMBER             DATE                          AMOUNT (INDEX LINKED)
1                  1 October 2000                     NIS 66,141
2                  1 January 2001                     NIS 66,141
3                  1 April 2001                       NIS 66,141
4                  1 July 2001                        NIS 66,141
5                  1 October 2001                     NIS 66,141
6                  1 January 2002                     NIS 66,141
7                  1 April 2002                       NIS 66,141
8                  1 July 2002                        NIS 66,141
9                  1 October 2002                     NIS 66,141
10                 1 January 2003                     NIS 66,141
11                 1 April 2003                       NIS 66,141
12                 1 July 2003                        NIS 66,141
13                 1 October 2003                     NIS 66,141
14                 1 January 2004                     NIS 44,094
<PAGE>

                         APPENDIX E TO TENANCY AGREEMENT

Between: Har Hotzvim Properties Ltd. ("the lessor")

And:     BRT Biopharmaceuticals Ltd. ("the lessee")

                                    INSURANCE

1.   This appendix constitutes an integral part of the tenancy agreement between
     the lessor and the lessee that was signed with regard to the leased
     premises that are unit No. B/3/101 in Building B in the Ramot Meir project,
     Har Hotzvim, Jerusalem.

2.   The lessee undertakes to take out and maintain the insurance detailed in
     the provisions of this appendix and undertakes to abide by all of the
     obligations imposed on it by the various provisions of this appendix, and
     as follows:

     2.1  Before the date of the handover of possession of the leased premises
          and/or before the date of the granting of permission and as a
          condition for receiving permission to carry out work in the leased
          premises and/or before the starting date of any work whatsoever in the
          leased premises by the lessee and/or on its behalf and/or for its
          benefit--whichever of these three may be earliest--the lessee
          undertakes to take out and maintain "construction work insurance" as
          enumerated in Appendix E-1 (attached to the present Appendix E as part
          thereof) at its own expense with a legally certified insurance company
          that has a reputation in Israel, concerning all work to be performed
          by it and/or on its behalf and/or for its benefit in the leased
          premises, including equipment, systems, and machines that will be used
          for the lessee's business as well as repairs, renovations,
          improvements, modifications, and additions that may be made to the
          leased premises.

     2.2  Without a need for any request or application by the lessor and/or the
          management company, the lessee undertakes to convey to the lessor no
          later than the date of the handover of possession of the leased
          premises or the date of the start of any work whatsoever in the leased
          premises, whichever of these two may be earlier, confirmation that it
          has taken out construction insurance, on the model of the
          "construction insurance certification" attached to the present
          appendix and labeled Appendix E-1, signed in due legal form by the
          insurer. The lessee and the lessor and/or the management company shall
          be entitled to prevent the lessee from carrying out work in the leased
          premises and/or handling over possession of the leased premises in the
          event that the said confirmation has not been presented before the
          said date.

     2.3  Without detracting from the liability and obligations of the lessee
          under this tenancy agreement and the present Appendix E and under the
          management contract and/or according to law, from the date of the
          introduction of any property and/or belongings whatsoever to the
          leased premises or from the date of the start of the term of the
<PAGE>

          lease and/or from the date of the handover of possession of the leased
          premises (whichever is earliest), the lessee undertakes to purchase at
          its own expense and to maintain throughout the entire period of the
          lease the insurance detailed in the "certification of tenant
          insurance" attached to the present Appendix E as part thereof and
          designated Appendix E-2 (hereinafter "tenant insurance").

     2.4  The lessee undertakes to update the amount of the coverage on account
          of the insurance stated in the "certification of tenant insurance"
          from time to time so that it always reflects the full value, at
          replacement value, of the property insured thereunder.

     2.5  Without a need for any request or application by the lessor and/or the
          management company, the lessee undertakes to convey to the lessor
          and/or the management company, no later than the date of the start of
          the lease or the date of the introduction of any property whatsoever
          to the leased premises, whichever of these two may be earlier,
          confirmation that it has taken out insurance on the leased premises on
          the model of the "certification of tenant insurance" attached to the
          present appendix and labeled Appendix E-2, signed in due legal form by
          the insurer. The lessee states that it is aware that presentation of
          the said "certification of tenant insurance" is a necessary and
          prerequisite condition for the start of any activity by the lessee in
          the leased premises and/or the introduction of any property whatsoever
          to the leased premises as stated above, and the lessor and/or the
          management company shall be entitled to prevent the lessee from
          conducting any activity in the leased premises and/or introducing any
          property as stated in the case that the said certification is not
          submitted to it before the date stipulated above.

     2.6  To avoid any misunderstanding it is made clear that the failure to
          present the above certifications of insurance and insurance policies
          on the date stated above shall not detract from the obligations of the
          lessee under the tenancy agreement, including, and without detracting
          from the generality of what is stated, the execution of any payment
          that devolves on the lessee, and the lessee undertakes to meet all of
          its obligations under the tenancy agreement and management contract
          even if it is prevented from carrying out work and/or receiving
          possession of the leased premises and/or introducing property to the
          leased premises and/or opening its business in the leased premises,
          because of the failure to present the certifications on time.

     2.7  In this context it is made clear that nothing in the taking out of the
          above insurance by the lessee can limit or detract in any fashion
          whatsoever from the lessee's obligation under the tenancy agreement
          and management contract and shall not release it from its obligation
          to compensate the lessor and/or the management company or any person
          whatsoever on account of any damage for which the lessee is liable
          under the tenancy agreement and under the management contract and/or
          by law.

     2.8  The payment of any insurance benefits whatsoever shall have no force
          other than reduce the amount of indemnification or compensation to
          which the lessor and/or the management company may be entitled on
          account of damage or loss.
<PAGE>

     2.9  No later than 14 days before the expiration of the term of the tenant
          insurance, the lessee undertakes to deposit with the lessor and/or the
          management company certification of tenant insurance as stated in
          section 2.5 above on account of the extension of its validity for
          another year.

     2.10 The lessor and/or the management company shall be entitled to examine
          the insurance certificates presented by the lessee as stated above and
          the lessee undertakes to make any change or modification that may be
          required in order to make them compatible with its obligations. The
          lessee declares and undertakes that the rights of the lessor and/or
          the management company to conduct this examination and demand changes
          as stated about do not impose upon the lessor and/or the management
          company or anyone on their behalf any duty or any responsibility
          whatsoever concerning the stated insurance certificates, their nature,
          their scope, and their term of validity, or concerning their absence,
          and nothing in them can detract from any obligation imposed on the
          lessee under the tenancy agreement and the management contract, and
          this whether or not they so requested and whether or not they so
          examined.

     2.11 The lessee undertakes to abide by all conditions of the policies
          mentioned above in the present appendix, to pay the premiums in full
          and on time, and to see to it and to verify that the leased premises
          and tenant insurance policies are renewed from time to time, as
          required, and remain in force throughout the term of the lease.

          Should the lessee fail to meet its obligations under this entire
          appendix, the lessor and/or the management company shall be entitled,
          but not required, to take out the insurance or some portion thereof in
          the place of the lessee and at its expense and/or to pay in its place
          any sum whatsoever, and this without detracting from the right of the
          lessor and/or the management company to any other remedy.

     2.12 The lessee undertakes not to perform and/or allow anyone acting on its
          behalf to commit any act of commission or omission that may tend to
          increase the insurance outlays of the lessor and or the management
          company and/or other lessees on account of insurance of the structure
          or its leased premises.

          The lessee undertakes that to the extent that the lessor and/or the
          management company may be required to make other insurance payments
          beyond the norm on account of activity by the lessee, the lessee shall
          pay to the lessor and/or to the management company, as appropriate,
          the stated supplement immediately upon receipt of the first request to
          do so.

3.   The lessor and/or the management company shall take out the following
     insurance (hereinafter "Company insurance"):

     3.1  Extended fire insurance for the structures of the project. For the
          purposes of this section, the "structures of the project" do not
          include the contents of the tenant's unit and/or any addition, repair,
          modification, renovation, or expansion made to the tenant's unit by
          the lessee or someone acting on its behalf. This insurance shall
<PAGE>

          include a waiver of the right of subrogation vis-a-vis the lessee,
          except in the case of damage caused by the lessee or by anyone acting
          on its behalf with malicious intent ("the tenant's unit" means "the
          leased premises").

     3.2  Insurance against the loss of rent at its full value on account of
          damage that may be caused to the leased premises and/or the project as
          a result of risks that are covered by the property insurance
          enumerated in section 3.1 above. This insurance shall include a waiver
          of the right of subrogation vis-a-vis the lessee, except in the case
          of damage caused by the lessee or by anyone acting on its behalf with
          malicious intent.

     3.3  Third-party liability insurance against bodily damage and/or property
          damage that may be caused outside the area of the units and leased
          premises and that is related to the operation, maintenance, and
          management of the public areas of the project. The insurance shall be
          extended to indemnify the lessee in the event that it is adjudged to
          be responsible for the acts of commission and/or omission of the
          lessor or management company and shall include a cross-liability
          clause.

          This insurance does not cover the separate and unique liability of the
          lessee for damages associated with the leased premises themselves
          and/or associated with the lessee and/or the content of the leased
          premises.

     3.4  Employers' liability insurance to cover liability of the lessor and/or
          the management company vis-a-vis their employees under any law. This
          insurance shall be extended to indemnify the lessee in the event that
          it is adjudged to be the employer of any of the employees of the
          management company and/or the lessor.

     3.5  Additional insurance at the discretion of the lessor and/or at the
          discretion of the management company.

Copies of the "company insurance" policies shall be on file in the offices of
the management company and available for examination by tenants during regular
working hours.

IN WITNESS WHEREOF THE PARTIES HAVE AFFIXED THEIR SIGNATURES

TODAY, 13 DECEMBER 1999, in JERUSALEM

[company stamp:                      [company stamp:
Har Hotzvim Properties, Ltd.]        BRT Biopharmaceuticals Ltd.]
[signatures:  ?? & ??]               [signatures:  Moshe Laster & Ira Weinstein]

              LESSOR                                       LESSEE
<PAGE>

                                  APPENDIX E-1
          (SUBSIDIARY APPENDIX TO APPENDIX E TO THE TENANCY AGREEMENT)

Between: Har Hotzvim Properties Ltd. ("the lessor")

And:     BRT Biopharmaceuticals Ltd. ("the lessee")

                     Certification of Construction Insurance

To:
Har Hotzvim properties Ltd. (hereinafter "the lessor")
____________________(hereinafter "the management company")
____________________

Dear Sirs or Mesdames

        Re: CERTIFICATION OF THE ISSUANCE OF CONSTRUCTION WORK INSURANCE

We hereby certify that starting on 1 January 2000 and continuing until 31 March
2000 we have drawn up on behalf of BRT Biopharmaceuticals Ltd. (hereinafter "the
lessee") and in its name the insurance listed below and in accordance with what
is stated in section 11 and Appendix E of the tenancy agreement between you
(unit ____ in Building ___ in the Ramot Meir project, Har Hotzvim, Jerusalem),
as follows:

1.   CONSTRUCTION INSURANCE--policy to insure work by contractors--all risks
     [added by hand:]
            not including break-ins

CHAPTER 1 - PROPERTY INSURANCE

The policy covers the work, including materials, equipment, installations, and
everything else that may be brought to carry out the work of any type whatsoever
on the property leased under the aforesaid tenancy agreement.

This insurance includes the lessor and the management company and their
employees and or executives and all the contractors and subcontractors as
additional beneficiaries.

Total value of the work:  $120,000

This policy includes the following extensions:   Removal of rubble in the amount
                                                 of $12,000

                                                 Adjacent property and property
                                                 being worked on in the amount
                                                 of $250,000
<PAGE>

CHAPTER 2 - THIRD-PARTY LIABILITY INSURANCE

This policy will cover liability of the insured vis-a-vis any third party on
account of any injury whatsoever, loss, or damage to body and/or property as a
result of the work specified in chapter 1 above. This insurance shall include
the lessor and the management company and their executives and their employees
and all contractors and subcontractors as additional insured parties.

The liability limits of this policy are NIS 500,000 per incident and for the
entire term.

The policy includes the following extensions:    Cross-liability clause

                                                 Property belonging to the
                                                 lessor and/or the management
                                                 company shall be considered to
                                                 be third party

                                                 Any person who is not included
                                                 in the wage lists of the
                                                 insured party shall be
                                                 considered to be a third party.

                                                 Damage to third-party property
                                                 as a result of the use of motor
                                                 vehicles, excluding liability
                                                 that is indemnifiable under the
                                                 Law for Compensation of Traffic
                                                 Accident Victims and liability
                                                 covered by a standard
                                                 motor-vehicle insurance policy.
                                                 The liability beyond the above
                                                 is within the limits of
                                                 liability specified above.

CHAPTER 3 - EMPLOYERS' LIABILITY INSURANCE

This policy will cover the liability under the law of each of those insured
vis-a-vis its employees, representatives, and any other person found in its
service and subject to its authority, including subcontractors, their employees,
their representatives, and any other person in their service and/or subject to
their authority, on account of bodily, mental, or emotional damage or death that
may be caused to each of those enumerated above in connection with his or her
work.

[added by hand:] $1,500,000 per employee and per incident.

The liability limits of this insurance are $5,000,000 (five million United
States dollars) per claimant and for the entire term.

This policy includes the lessor and the management company and all contractors
and subcontractors as additional insured parties.

In addition, this policy is not subject to any restriction with regard to
working hours, contractors, subcontractors, their employees, their
representatives, or any other person found in their service and/or subject to
their authority, work on heights or in depths, lures and poisons, as well as the
employment of youth.
<PAGE>

2.   MISCELLANEOUS

     2.1  We affirm that the aforesaid policy (or policies), chapters 1, 2, and
          3, that are enumerated above, include an explicit clause with regard
          to the waiver of the right of subrogation vis-a-vis the lessor, the
          management company, their executives and/or employees, any person in
          their service, and vis-a-vis other lessees in the aforesaid project
          and/or their employees and executives of all of the above and all
          those acting on their behalf.

     2.2  We hereby undertake not to cancel and not to modify and not to reduce
          the above insurance policies or any of them without providing previous
          written notice by registered mail of at least 30 days to the lessor
          and/or to the management company.

     2.3  We affirm that the lessor and/or the management company shall not be
          liable for payment of premiums for the policies mentioned above and
          for fulfilling all of the obligations imposed upon the insured under
          the terms of the policy.

     2.4  The insurance under the above policy (or policies) (chapters 1, 2, and
          3 above) is primary insurance and takes precedence over any other
          insurance taken out by the lessor and/or by the management company.

[company stamp] Zion Insurance Company      [signature]
                seal of the insurer                   Signature of the insured
[signature]                                 underwriter
                Name of signatory                     position of the signatory
Ben Yehuda 1, Jerusalem
              Address of the insurer
02 623 4341
           telephone number of the insurer

               SIGNATURES FOR THE PURPOSE OF THE TENANCY AGREEMENT

--------------------------------------------------------------------------------
                                   [company stamp:  BRT Biopharmaceuticals Ltd.]
                                   [Signatures:  Moshe Laster & Ira Weinstein]
--------------------------------------------------------------------------------
         "The Lessor"                              "The Lessee"
--------------------------------------------------------------------------------
<PAGE>

                                  APPENDIX E-2
          (SUBSIDIARY APPENDIX TO APPENDIX E TO THE TENANCY AGREEMENT)

Between: HAR HOTZVIM PROPERTIES LTD. ("THE LESSOR")

And:     BRT BIOPHARMACEUTICALS LTD. ("THE LESSEE")

                        CERTIFICATION OF TENANT INSURANCE

To:
Har Hotzvim properties Ltd. (hereinafter "the lessor")
____________________(hereinafter "the management company")
____________________

Dear Sirs or Mesdames

  Re: CERTIFICATION OF THE ISSUANCE OF EMPLOYERS' LIABILITY INSURANCE, THIRD-
      PARTY LIABILITY INSURANCE, PROPERTY INSURANCE, AND LOSS OF PROFIT
      INSURANCE

We hereby certify that we have issued the policies enumerated below, as stated
in section 11 and Appendix E of the tenancy agreement between the lessor and BRT
Biopharmaceuticals Ltd. (hereinafter "the lessee") on account of the property
leased by the lessee in the Ramot Meir project, Building B, unit ____, Har
Hotzvim, Jerusalem, and this for the period beginning on 31 January 2000 and
concluding on 31 December 2000.

1.   THE INSURANCE

Chapter 1.  Coverage of the lessee's liability vis-a-vis its workers and/or all
            those employed by it or on its behalf under the Torts Ordinance (new
            version) and/or the Defective Products Liability Law 5740-1980, on
            account of death and/or bodily damage to any worker as a result of
            accident or illness during the course of or as a result account of
            his or her employment, with a liability limit in the amount of
            5,000,000 (five million United States dollars) and the total for the
            entire period of the annual insurance. [added by hand:] per incident
            and worker $1,500,000.

            This policy has been extended to indemnify the lessor and/or the
            management company to the extent that they may be adjudged to be the
            employers of the workers of the lessee and its employees or any of
            them.

Chapter 2.  Third-party liability insurance--coverage of the lessee's liability
            vis-a-vis the lessor and/or vis-a-vis the management company and/or
            vis-a-vis any third party, under the laws of the State of Israel
            with a limit of liability that is not less than a sum in sheqels
            equal to NIS 500,000 for a single case and the total for the entire
            period of the annual insurance.

            The said policy is not subject to any limitation with regard to
            liability that may stem from fire, panic, explosion, lifting
            equipment, loading and unloading,
<PAGE>

            poisoning, any harmful item in food and drink, defective sanitary
            installations, strike and lockout, or claims on behalf of the
            National Insurance Institute.

Chapter 3a. Property insurance--Coverage for the content of the leased premises
            and any other property in the ownership and/or responsibility of the
            lessee including any repair, modification, improvement, renovation,
            or addition to the leased premises that has been performed and/or
            may be performed by the lessee and/or those acting on its behalf at
            the replacement value, against the risks of fire, smoke, lightning,
            explosion, earthquake, storm, tempest, flood, damage by liquids,
            impact by aircraft, sonic boom, collision, strikes, riots, malicious
            damage, and break-in.

            The name of the insured party includes also the lessor and the
            management company.

Chapter 3b. Insurance against loss of profits by the lessee has result of damage
            caused to the leased premises and/or to its contents as a result of
            the risks insured as stated above, for a period of indemnification
            that is not less than 12 months.

2.   MISCELLANEOUS

     2.1  We affirm that the aforesaid policy (or policies), chapters 1, 2, 3a,
          and 3b, that are enumerated above, include an explicit clause with
          regard to the waiver of the right of subrogation vis-a-vis the lessor,
          the management company, their executives and/or employees, any person
          in their service, and vis-a-vis other lessees in the aforesaid project
          and/or their employees and executives of all of the above and all
          those acting on their behalf.

     2.2  We hereby undertake not to cancel and not to modify and not to reduce
          the above insurance policies or any of them without providing previous
          written notice by registered mail of at least 30 days to the lessor
          and/or to the management company.

     2.3  We affirm that the lessor and/or the management company shall not be
          liable for payment or premiums for the policies mentioned above and
          for fulfilling all of the obligations imposed upon the insured under
          the terms of the policy.

     2.4  The insurance under the above policy (or policies) (chapters 1, 2, and
          3a and 3b above) is primary insurance and takes precedence over any
          other insurance taken out by the lessor and/or by the management
          company.

[company stamp] Zion Insurance Company           [signature]
                seal of the insurer                    Signature of the insured
[signature]                                      underwriter
                Name of signatory                      position of the signatory
Ben Yehuda 1, Jerusalem
            Address of the insurer
02 623 4341
         telephone number of the insurer
<PAGE>

               Signatures for the Purpose of the Tenancy Agreement
--------------------------------------------------------------------------------
                                  [company stamp:  BRT Biopharmaceuticals Ltd.]
                                  [Signatures:  Moshe Laster & Ira Weinstein]
--------------------------------------------------------------------------------
            "The Lessor"                       "The Lessee"
--------------------------------------------------------------------------------THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE
OF THIS WARRANT AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR
TRANSFERRED EXCEPT (i) UNDER COVER OF A REGISTRATION STATEMENT
UNDER SUCH ACT WHICH IS EFFECTIVE AND CURRENT WITH RESPECT TO THIS
WARRANT OR SUCH SHARES OF COMMON STOCK, AS THE CASE MAY BE, OR (ii)
PURSUANT TO THE WRITTEN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO
PERMA-FIX ENVIRONMENTAL SERVICES, INC. TO THE EFFECT THAT
REGISTRATION UNDER SUCH ACT IS NOT REQUIRED WITH RESPECT TO SUCH
SALE OR TRANSFER.

              PERMA-FIX ENVIRONMENTAL SERVICES, INC.

                      RYAN, BECK & CO., INC.

                               AND

                   LARKSPUR CAPITAL CORPORATION

                        WARRANT AGREEMENT

                   Dated as of January 25, 2000

     WARRANT AGREEMENT, dated as of January 25, 2000 by and among
PERMA-FIX ENVIRONMENTAL SERVICES, INC., a Delaware corporation (the
"Company"), RYAN BECK & CO, INC., and LARKSPUR CAPITAL CORPORATION
(hereinafter referred to individually  called a "Holder" or "Agent"
and collectively, the "Holders" or the "Agents").

                       W I T N E S S E T H:

     WHEREAS, the Company proposes to issue to the Agents, or
subject to the terms hereof, those permitted designees,  warrants
("Warrants") to purchase up to an aggregate 150,000 shares of
common stock of the Company, par value $.001 per share ("Common
Stock");

     WHEREAS, the Agents have agreed pursuant to an agreement (the
"Agreement") dated as of the date hereof by and among the Agents
and the Company to provide certain services to the Company;

     WHEREAS, the Company proposes to issue to the Agents (and/or
designees) the Warrants as a partial retainer for the Agents'
services;

<PAGE>

<PAGE>
     WHEREAS, the Agents are "accredited investors," as such term
is defined in Rule 501 of Regulation D promulgated under the
Securities Act of 1933, as amended (the "Act");

     WHEREAS, if either of the Agents designates any other party as
a designee for the purpose  of receiving any portion of the
Warrants pursuant to the terms hereof, then, prior to receiving any
of the Warrants as designee of the Agents, such designee must
execute and deliver to the Company a written certification
("Certification"), the form and content of which must be
satisfactory to the Company, in which such designee represents to
the Company that such designee is an "accredited investor" under
Rule 501 of Regulation D promulgated under the Act and how such
designee is an accredited investor, and that such designee is
acquiring such designated Warrants for the designees' own account,
for investment purposes only and not with a view toward
distribution or resale and agrees to be subject to and bound by all
of the other conditions and provisions of this Agreement
(including, but not limited to, the representations, warranties and
covenants contained in Sections 3 and 7 hereof) and shall execute
and deliver to the Company an agreement in form and substance
substantially the same as this Agreement except for the name and
number of Warrants to be issued to the designee;

     WHEREAS, the Common Stock is listed for trading on the Boston
Stock Exchange and the National Association of Securities Dealers
Automated Quotation SmallCap market ("NASDAQ"), and the Company is
subject to the reporting requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act")
and has been subject to such filing requirements for the past
ninety (90) days; and

     WHEREAS, in reliance upon the representations made by the
Agents  in this Agreement, the transactions contemplated by this
Agreement are such that the offer and purchase of securities
hereunder will be exempt from registration under applicable federal
securities laws because this is a private placement and intended to
be a nonpublic offering pursuant to Sections 4(2) and/or 3(b) of
the Securities Act and/or Regulation D promulgated under the Act.

     NOW, THEREFORE, in consideration of the premises, the payment
by the Agents to the Company of an aggregate of twelve dollars and
fifty cents ($12.50), the agreements herein set forth and other
good and valuable consideration, hereby acknowledged, the parties
hereto agree as follows:

     1.   Grant.  The Agents are hereby granted Warrants providing
the right to purchase in equal amounts, at any time and from the
date hereof until 5:30 p.m., New York time, on January 25, 2005, up
to an aggregate  of 150,000 shares of Common Stock (the "Warrant
Shares") at an initial exercise price (subject to adjustment as
provided in Section 11 hereof) of $1.44 per share of Common Stock
subject to the terms and conditions of this Agreement.  Except as
set forth herein, the Warrant Shares issuable upon exercise of the
Warrants are in all respects identical to the shares of Common
Stock that have been issued to the public.  Anything to the
contrary notwithstanding, the Company shall have the right to
cancel 50% of the Warrants issued and then outstanding, on a pro
rata basis among the registered holders of the Warrants thereof, in

                               2
<PAGE>
the event that no Transaction (as defined in the Agreement dated
January 25, 2000 between Ryan, Beck & Co., Larkspur Capital
Corporation and Perma-Fix Environmental Services, Inc. and its
related subsidiaries) shall have occurred within one year from the
date hereof.  In the event any registered holder of the Warrants
holds an odd number of Warrants at the time of cancellation of 50%
of the Warrants issued and then outstanding by the Company, the
number of Warrants held by such registered holder of the Warrants
which are canceled shall be rounded up to the next highest whole
number.

     2.   Warrant Certificates.  The warrant certificates (the
"Warrant Certificates") delivered and to be delivered pursuant to
this Agreement shall be in the form set forth in Exhibit A,
attached hereto and made a part hereof, with such appropriate
insertions, omissions, substitutions, and other variations as
required or permitted by this Agreement.

     3.   Representations, Warranties and Covenants of Holder.
Each of the Holders of Warrants and/or Warrant Shares hereby
represents, warrants and covenants to the Company as follows:

          3.1  Investment Intent.  The Holders represent and
               warrant that the Warrants are being, and any
               underlying Warrant Shares will be, purchased or
               acquired solely for the Holders' own account, for
               investment purposes only and not with a view toward
               the distribution or resale to others.  The Holders
               acknowledge and understand that neither the
               Warrants nor Warrant Shares have been registered
               under the Act by reason of a claimed exemption
               under the provisions of the Act which depends, in
               large part, upon the Holders' representations as to
               investment intention, investor status, and related
               and other matters set forth herein.  The Holders
               understand that, in the view of the Securities and
               Exchange Commission (the "Commission"), among other
               things, a purchase with an intent to distribute or
               resell would represent a purchase and acquisition
               with an intent inconsistent with its representation
               to the Company, and the Commission might regard
               such a transfer as a deferred sale for which the
               registration exemption is not available.

          3.2  Certain Risk.  The Holders recognize that the
               purchase of the Warrants or Warrant Shares involves
               a high degree of risk in that (a) although the
               Company has had an unaudited net income for the
               nine month period ended September 30, 1999, the
               Company did sustain losses through December 31,
               1998, from its operations, and may require
               substantial funds for its operations; (b) that the
               Company has a substantial accumulated deficit; (c)
               an investment in the Company is highly speculative
               and only investors who can afford the loss of their
               entire investment should consider investing in the
               Company and the Warrants or Warrant Shares; (d) an
               investor may not be able to liquidate his
               investment; (e) transferability of the Warrants or
               Warrant Shares is extremely limited; (f) in the
               event of a disposition an investor could sustain
               the loss of his entire investment; (g) the Warrants

                                  3
<PAGE>
               represent non-voting equity securities, and the
               right to exercise such Warrants and purchase shares
               of voting equity securities in a corporate entity
               that has an accumulated deficit; (h) no return on
               investment, whether through distributions,
               appreciation, transferability or otherwise, and no
               performance by, through or of the Company, has been
               promised, assured, represented or warranted by the
               Company, or by any director, officer, employee,
               agent or representative thereof; and, (i) while the
               Common Stock is presently quoted and traded on the
               Boston Stock Exchange and the NASDAQ and while the
               Holders are a beneficiary of certain registration
               rights provided herein, the Warrants subscribed for
               and that are purchased under this Agreement and the
               Warrant Shares (a) are not registered under
               applicable federal or state securities laws, and
               thus may not be sold, conveyed, assigned or
               transferred unless registered under such laws or
               unless an exemption from registration is available
               under such laws, as more fully described herein,
               and (b) the Warrants subscribed for and that are to
               be purchased under this Agreement are not quoted,
               traded or listed for trading or quotation on the
               NASDAQ, or any other organized market or quotation
               system, and there is therefore no present public or
               other market for the Warrants, nor can there be any
               assurance that the Common Stock will continue to be
               quoted, traded or listed for trading or quotation
               on the Boston Stock Exchange or the NASDAQ or on
               any other organized market or quotation system.

          3.3  Prior Investment Experience.  The Holders
               acknowledge that they have prior investment
               experience, including investment in non-listed and
               non-registered securities, or they have employed
               the services of an investment advisor, attorney or
               accountant to read all of the documents furnished
               or made available by the Company to them and to
               evaluate the merits and risks of such an investment
               on their behalf, and that they recognize the highly
               speculative nature of this investment.

          3.4  No Review by the Commission.  The Holders hereby
               acknowledge that this offering of the Warrants has
               not been reviewed by the Commission because this
               private placement is intended to be a nonpublic
               offering pursuant to Sections 4(2) and/or 3(b) of
               the Act and/or Regulation D promulgated under the
               Act.

          3.5  Not Registered.  The Holders understand that the
               Warrants and the Warrant Shares have not been
               registered under the Act by reason of a claimed
               exemption under the provisions of the Act which
               depends, in part, upon the Holders' investment
               intention.  In this connection, the Holders
               understand that it is the position of the
               Commission that the statutory basis for such
               exemption would not be present if their
               representations merely meant that their intention
               was to hold such securities for a short period,

                                 4
<PAGE>
               such as the capital gains period of tax statutes,
               for a deferred sale, for a market rise (assuming
               that a market develops), or for any other fixed
               period.

          3.6  No Public Market.  The Holders understand that
               there is no public market for the Warrants.  The
               Holders understand that although there is presently
               a public market for the Common Stock, including the
               Warrant Shares, Rule 144 (the "Rule") promulgated
               under the Act requires, among other conditions, a
               one-year holding period following full payment of
               the consideration therefor prior to the resale (in
               limited amounts) of securities acquired in a
               nonpublic offering without having to satisfy the
               registration requirements under the Act.  The
               Holders understand that the Company makes no
               representation or warranty regarding its
               fulfillment in the future of any reporting
               requirements under the Exchange Act, or its
               dissemination to the public of any current
               financial or other information concerning the
               Company, as is required by the Rule as one of the
               conditions of its availability.  The Holders
               understand and hereby acknowledge that the Company
               is under no obligation to register the Warrants or
               the Warrant Shares under the Act, except as set
               forth in Section 10 hereof.

          3.7  Sophisticated Investor. The Holders (a) have
               adequate means of providing for the Holders'
               current financial needs and possible contingencies
               and have no need for liquidity of the Holders'
               investment in the Warrants; (b) are able to bear
               the economic risks inherent in an investment in the
               Warrants and understand that an important
               consideration bearing on their ability to bear the
               economic risk of the purchase of Warrants is
               whether the Holders can afford a complete loss of
               the Holders' investment in the Warrants and the
               Holders represent and warrant that the Holders can
               afford such a complete loss; and (c) have such
               knowledge and experience in business, financial,
               investment and banking matters (including, but not
               limited to, investments in restricted, non-listed
               and non-registered securities) that the Holders are
               capable of evaluating the merits, risks and
               advisability of an investment in the Warrants.

          3.8  Tax Consequences.  The Holders acknowledge that the
               Company has made no representation regarding the
               potential or actual tax consequences for the
               Holders which will result from entering into the
               Agreement.  The Holders acknowledge that they bear
               complete responsibility for obtaining adequate tax
               advice regarding the Agreement.

          3.9  Commission Filing.  The Holders acknowledge that
               they have been previously furnished with true and
               complete copies of the following documents which
               have been filed with the Commission pursuant to
               Sections 13(a), 14(a), 14(c) or 15(d) of the
               Exchange Act, and that such have been furnished to
               the Holders a reasonable time prior to the date

                                  5
<PAGE>
               hereof:  (i) Annual Report on Form 10-K for the
               year ended December 31, 1998 (the "Form 10-K"), as
               may be amended; (ii) the Company's Proxy Statement
               delivered to shareholders on or about November 10,
               1999; and (iii) the information contained in any
               reports or documents required to be filed by the
               Company under Sections 13(a), 14(a), 14(c) or 15(d)
               of the Exchange Act since the distribution of the
               Form 10-K.

          3.10 Documents, Information and Access.  The Holders'
               decisions to purchase the Warrants are not based on
               any promotional, marketing or sales materials, and
               the Holders and their representatives have been
               afforded, prior to purchase thereof, the
               opportunity to ask questions of, and to receive
               answers from, the Company and its management, and
               has had access to all documents and information
               which Holders deem material to an investment
               decision with respect to the purchase of Warrants
               hereunder.

          3.11 No Commission.  The Holders agree and acknowledge
               that no commission or other remuneration is being
               paid or given directly or indirectly for soliciting
               the subscription described hereunder.

          3.12 Reliance.  The Holders understand and acknowledge
               that the Company is relying upon all of the
               representations, warranties, covenants,
               understandings, acknowledgments and agreements
               contained in this Agreement in determining whether
               to accept this subscription and to sell and issue
               the Warrants to the Holders.

          3.13 Accuracy or Representations and Warranties.  All of
               the representations, warranties, understandings and
               acknowledgments that Holders have made herein are
               true and correct in all material respects as of the
               date of execution hereof.  The Holders will perform
               and comply fully in all material respects with all
               covenants and agreements set forth herein, and the
               Holder covenants and agrees that until the
               acceptance of this Agreement by the Company, the
               Holders shall inform the Company immediately in
               writing of any changes in any of the
               representations or warranties provided or contained
               herein.

     4.   Representations, Warranties and Covenants of the Company.
In order to induce Holder to enter into this Agreement, the Company
hereby represents, warrants and covenants to Holder as follows:

          4.1  Organization, Authority, Qualification.  The
               Company is a corporation duly incorporated, validly
               existing and in good standing under the laws of the
               State of Delaware.  The Company has full corporate
               power and authority to own and operate its
               properties and assets and to conduct and carry on
               its business as it is now being conducted and
               operated.

                                 6
<PAGE>
          4.2  Authorization.  The Company has full power and
               authority to execute and deliver this Agreement and
               to perform its obligations under and consummate the
               transactions contemplated by this Agreement.  Upon
               the execution of this Agreement by the Company and
               delivery of the Warrants, this Agreement shall have
               been duly and validly executed and delivered by the
               Company and shall constitute the legal, valid and
               binding obligation of the Company, enforceable
               against the Company in accordance with its terms.

          4.3  No Commission.  The Company agrees and acknowledges
               that no commission or other remuneration is being
               paid or given directly or indirectly for soliciting
               the issuance of the Warrants.

          4.4  Ownership of, and Title to, Securities.  The
               Warrant Shares, if issued, will be, duly
               authorized, validly issued, fully paid and
               nonassessable shares of the capital stock of the
               Company, free of personal liability.  Upon
               consummation of the issuance of the Warrants (and
               upon the exercise of the Warrants, in whole or in
               part) pursuant to this Agreement, the Holder will
               own and acquire title to the Warrants (and the
               Warrant Shares, as the case may be) free and clear
               of any and all proxies, voting trusts, pledges,
               options, restrictions, or other legal or equitable
               encumbrance of any nature whatsoever (other than
               the restrictions on transfer due to federal and
               state securities laws or as otherwise provided for
               in this Agreement or in the Warrants).

     5.   Exercise of Warrant.

          5.1  Method of Exercise.  Subject to the terms hereof,
the Warrants initially are exercisable at an aggregate initial
exercise price per share of Common Stock set forth in Section 9
hereof payable by certified or cashier's check in New York Clearing
House funds, subject to adjustment as provided in Section 11
hereof.  Upon surrender of a Warrant Certificate with the annexed
Form of Election to Purchase duly executed, together with payment
of the Exercise Price (as hereinafter defined) for the shares of
Common Stock purchased pursuant to the terms hereof, at the
Company's principal offices (presently located at 1940 NW 67th
Place, Gainesville, FL 32653) the Holders shall be entitled to
receive a certificate or certificates for the shares of Common
Stock so purchased.  The purchase rights represented by each
Warrant Certificate are exercisable at the option of the Holders
thereof, in whole or in part (but not as to fractional shares of
the Common Stock underlying the Warrants).  Warrants may be
exercised to purchase all or part of the shares of Common Stock
represented thereby.  In the case of the purchase of less than all
the shares of Common Stock purchasable under any Warrant
Certificate, the Company shall cancel said Warrant Certificate upon
the surrender thereof and shall execute and deliver a new Warrant
Certificate of like tenor for the balance of the shares of Common
Stock purchasable thereunder.

                                 7
<PAGE>
          5.2  Exercise by Surrender of Warrants.  In addition to
the method of payment set forth in Section 5.1 and in lieu of any
cash payment required thereunder, subject to the terms hereof, each
Holder of the Warrants shall have the right at any time and from
time to time to exercise the Warrants held by such Holder in full
or in part by surrendering a Warrant Certificate in the manner
specified in Section 5.1 in exchange for the number of Warrant
Shares equal to the product of (x) the number of Warrant Shares as
to which the Warrants are being exercised multiplied by (y) a
fraction, the numerator of which is the Market Price (as defined in
Section 5.3 below) of the Warrant Shares less the Exercise Price
and the denominator of which is such Market Price.  Solely for the
purposes of this paragraph, Market Price shall be calculated as the
average of the Market Prices for each of the five trading days
preceding the Notice Date.

          5.3  Definition of Market Price.  As used herein, the
phrase "Market Price" at any date shall be deemed to be the average
closing bid quotation of the Company's Common Stock (i) as reported
on the NASDAQ for the last five (5) trading days, or (ii) if the
Common Stock is not traded on NASDAQ, the average closing price as
listed on a national securities exchange for the last five (5)
trading days, or (iii) if no longer traded on NASDAQ or listed on
a national securities exchange, as determined in good faith by
resolution of the Board of Directors of the Company, based on the
best information available to it.

     6.   Issuance of Certificates.  Upon the exercise of the
Warrants or any portion thereof, the issuance of certificates for
the Warrant Shares underlying such Warrants so exercised, shall be
made forthwith (and in any event within five (5) business days
thereafter) without charge to the Holder exercising such Warrants,
including, without limitation, any tax which may be payable in
respect of the issuance thereof, and such certificates shall be
issued in the name of the Holder thereof.

     The Warrants and the certificates representing the Warrant
Shares shall be executed on behalf of the Company by the manual or
facsimile signature of the then Chairman or Vice Chairman of the
Board of Directors or President or Vice President of the Company.

     7.   Restriction on Transfer of Warrants or Warrant Shares.
The Holder of a Warrant Certificate, by its acceptance thereof,
covenants and agrees that the Warrants are being acquired as an
investment and not with a view to the distribution thereof.  The
Holder of a Warrant Certificate, by its acceptance thereof, agrees
that (i) no public distribution of Warrants or Warrant Shares will
be made in violation of the provisions of the Act and the Rules and
Regulations promulgated thereunder  and (ii) during such period as
delivery of a prospectus with respect to Warrants or Warrant Shares
may be required by the Act, no public distribution of Warrants or
Warrant Shares will be made in a manner or on terms different from
those set forth in, or without delivery of, a prospectus then
meeting the requirements of Section 10 of the Act and in compliance
with all applicable state securities laws.  The Holder of each
Warrant Certificate and each transferee thereof further agrees that
if any distribution of any of the Warrants or Warrant Shares is
proposed to be made by them otherwise than by delivery of a
prospectus meeting the requirements of Section 10 of the Act, such
action shall be taken only after receipt by the Company of an
opinion of its counsel, or an opinion of counsel reasonably

                                8
<PAGE>
satisfactory to the Company, to the effect that the proposed
distribution will not be in violation of the Act or of applicable
state law.  Furthermore, it shall be a condition to the transfer of
the Warrants that any transferee thereof deliver to the Company his
or its written agreement to accept and be bound by all of the terms
and conditions contained in this Agreement.  Any Warrant Shares
issued upon exercise of the Warrants shall bear a legend to the
following effect:

                    The securities represented by this
                    certificate have not been registered
                    under the Securities Act of 1933, as
                    amended (the "Act"), or qualified under
                    applicable state securities laws, and are
                    restricted securities within the meaning
                    of the Act.  Such securities may not be
                    sold or transferred, except pursuant to a
                    registration statement under such Act and
                    qualification under applicable state
                    securities laws which are effective and
                    current with respect to such securities
                    or pursuant to an opinion of counsel
                    reasonably satisfactory to the issuer of
                    such securities that registration and
                    qualification are not required under
                    applicable federal or state securities
                    laws or an exemption is available
                    therefrom.

                    These securities are also subject to the
                    registration rights set forth in that
                    certain Warrant Agreement by and among
                    Perma-Fix Environmental Services, Inc.,
                    (the "Company") Ryan, Beck & Co., Inc.,
                    and Larkspur Capital Corporation, dated
                    as of January 25, 2000, a copy of which
                    is on file at the Company's Principal
                    Executive Office.

     8.   Warrant Holder Not Shareholder.  A Warrant Certificate
shall not be deemed to confer upon the Holder any right to vote the
Warrant Shares or to consent to or receive notice as a shareholder
of the Company as such, because of the Warrant Certificate, in
respect of any matters whatsoever, or any other rights or
liabilities as a shareholder.

     9.   Exercise Price.

          9.1  Initial and Adjusted Exercise Price.  Except as
otherwise provided in Section 11 hereof, the initial exercise price
of each Warrant shall be $1.44 per share of Common Stock.  The
adjusted exercise price shall be the price which shall result from
time to time from any and all adjustments of the initial exercise
price in accordance with the provisions of Section 11 hereof.

          9.2  Exercise Price.  The term "Exercise Price" herein
shall mean the initial exercise price or the adjusted exercise
price, depending upon the context.

                                 9
<PAGE>
     10.  Registration Rights.

          10.1 Piggyback Registration.  Subject to the terms of
this Section 10, if, at any time commencing after the date hereof
and expiring seven (7) years from the effective date, the Company
proposes to register any of its equity securities under the Act
(other than a registration statement (i) on Form S-8 or any
successor form to such form or in connection with any employee or
director welfare, benefit or compensation plan, (ii) on Form S-4 or
any successor form to such form or in connection with an exchange
offer, (iii) in connection with a rights offering exclusively to
existing holders of Common Stock, (iv) in connection with an
offering solely to employees of the Company or its subsidiaries, or
(v) relating to a transaction pursuant to Rule 145 of the Act), it
will give written notice by registered mail, at least thirty (30)
days prior to the filing of each such registration statement, to
each Holder of its intention to do so.  If any Holder notifies the
Company within twenty (20) business days after receipt of any such
notice of its desire to include any such securities in such
proposed registration statement, the Company shall afford any such
Holder of the opportunity to have any such Warrant Shares held by
such Holder or Warrant Shares underlying Warrants held by such
Holder, registered under such registration statement (sometimes
referred to herein as the "Piggyback Registration").

          Notwithstanding the provisions of this Section 10.1, the
Company shall have the right at any time after it shall have given
written notice pursuant to this Section 10.1 (irrespective of
whether a written request for inclusion of any such securities
shall have been made) to elect not to file any such proposed
registration statement, or to withdraw the same after the filing
but prior to the effective date thereof.

          If a Piggyback Registration is an underwritten primary
registration on behalf of the Company, and the managing
underwriters advise the Company in writing that in their reasonable
opinion based upon market conditions the number of securities
requested to be included in such registration exceeds the number
that can be sold in such offering or would impair the pricing of
such offering, the Company will include in such registration (i)
first, the securities the Company proposes to sell, (ii) second, up
to the full number of applicable Common Stock requested to be
included in such registration by holders of Common Stock with prior
or superior piggyback registration rights, (iii) third, the number
of applicable Warrant Shares  requested to be included in such
registration, pro rata among the Holders on the basis of the number
of shares requested by such holders to be included and  which, in
the opinion of the managing underwriter, can be sold without
adversely affecting the price range or probability of success of
such offering, and (iv) fourth, other securities to be included in
such registration.

      10.2 Demand Registration.

               (a) Subject to the terms of this Section 10, at any time after
the date hereof and expiring five (5) years from the effective date, the
Holders representing a "Majority" (as hereinafter defined) of the Warrant
Shares (assuming the exercise of all the Warrants) shall have the right
(which right is in addition to the registration rights under Section 10.1
hereof), exercisable by written notice to the Company, to have the Company

                                10
<PAGE>
prepare and file with the Securities and Exchange Commission (the
"Commission"), on one occasion only, a registration statement and such
other documents, including a prospectus, as may be necessary in the opinion
of both counsel for the Company and counsel for Ryan Beck & Co., Inc.,  in
order to comply with the provisions of the Act, so as to permit a public
offering and the sale of their respective Warrant Shares for nine (9)
consecutive months by such Holders and any other Holder notifying the Company
within ten (10) days after receiving notice from the Company of such request.

            (b) The Company covenants and agrees to give written notice of any
registration request under this Section 10.2 by any Holder to each Holder
within ten (10) days from the date of the receipt of any such registration
request.

               (c) Notwithstanding anything to the contrary contained herein,
if the Company is obligated to file a registration statement covering the
Warrant Shares under Section 10.2(a) but shall not have filed a registration
statement for the Warrant Shares within the time period specified in Section
10.3 hereof pursuant to the written notice specified in Section 10.2(a) of a
Majority of the Holders, which time period shall be extended pursuant to
10.2(d) below, the Company shall have the option, but not the obligation,
upon the written notice of election of a Majority of the Holders to
repurchase (i) any and all Warrant Shares at the higher of the Market Price
per share of Common Stock on (y) the date of the notice sent pursuant to
Section 10.2(a) or (z) the expiration of the period specified in Section
10.3(a) and (ii) any and all Warrants at such Market Price less the Exercise
Price of such Warrant.  Such repurchase shall be in immediately available
funds and shall close within two (2) days after the later of (i) the
expiration of the period specified in Section 10.3(a) or (ii) the delivery
of the written notice of election specified in this Section 10.2(d).  The
Company shall have no obligation to exercise the option that may be granted
pursuant to the terms of this paragraph (c) of Section 10.2 hereof.

               (d) Notwithstanding anything to the contrary, the Company may
delay the filing of a Registration Statement under this Section 10.2 and may
withhold efforts to cause such Registration Statement to become effective
if the Company determines in good faith that such registration might
interfere with or affect the negotiation or completion of any material
transaction or other material event that is being contemplated by the Company
(whether or not a final decision has been made to undertake such material
transaction at the time the right to delay is exercised). The Company may
exercise such right to delay the filing or effectiveness of a Registration
Statement two times and may delay the filing or effectiveness of such
registration statement for not more than 90 days beyond the relevant period
set forth in Section 10.3(a). Upon any delay by the Company pursuant to
this Section 10.2(d) which lasts more than 60 days, the Majority of the
Holders may rescind the notice given pursuant to Section 10.2(a), and the
Holders will be deemed not to have exercised the right to effect the filing of
a Registration Statement under Section 10.2(a) as a result of such notice.

               (e) Notwithstanding anything herein to the contrary, the
obligations of the Company and rights of the Holders under Sections 10.1, 10.2
and 10.3 shall expire and terminate at such time as Ryan, Beck & Co., or its
successors, shall have received from counsel to the Company an unqualified

                                   11
<PAGE>
written opinion of such counsel that the Holders have the right, pursuant
to the provision of Rule 144 under the Act, to sell within any three month
period from the date of the opinion all Warrant Shares then held and
purchasable
upon exercise of the Warrants by such Holders.

          10.3 Covenants of the Company With Respect to Registration.  In
connection with any registration under Section 10.1 or 10.2 hereof, the
Company
covenants and agrees as follows:

               (a) The Company shall use its reasonable efforts to file a
registration statement within fifty  (50) days of receipt of any demand
therefor, shall use its reasonable efforts to have any registration statements
declared effective at the earliest possible time, and shall furnish each
Holder desiring to sell Warrant Shares under such registration statement such
number of prospectuses as shall reasonably be requested.

               (b) The Company shall pay all costs (excluding
fees and expenses of Holder(s)' counsel and any underwriting or
selling commissions which shall be paid by the Holders),
fees and expenses in connection with all registration statements
filed pursuant to Section 10.1 and 10.2(a) hereof including,
without limitation, the Company's legal and accounting fees,
printing expenses, blue sky fees and expenses.

               (c) The Company will take all necessary action
which may be required in qualifying or registering the Warrant
Securities included in a registration statement for offering and
sale under the securities or blue sky laws of such states as
reasonably are requested by the Holder(s), provided that the
Company shall not be obligated to execute or file any general
consent to service of process or to qualify as a foreign
corporation to do business under the laws of any such
jurisdiction.

               (d) Nothing contained in this Agreement shall be
construed as requiring the Holders to exercise their Warrants
prior to the initial filing of any registration statement or the
effectiveness thereof.

               (e) The Company shall deliver promptly to each
Holder participating in the offering requesting the
correspondence and memoranda described below copies of all
correspondence between the Commission and the Company, its
counsel or auditors and all memoranda relating to discussions
with the Commission or its staff with respect to the registration
statement.

               (f) Notwithstanding anything herein to the
contrary, the obligations of the Company and rights of the
Holders under Sections 10.1, 10,.2 and 10.3 shall expire and
terminate at such time as Ryan, Beck & Co., Inc. or its
successors, shall have received from counsel to the Company an
unqualified written opinion of such counsel that the Holders have
the right, pursuant to the provisions of Rule 144 under the Act,
to sell within any three month period from the date of the
opinion all Warrant Shares then held and purchasable upon
exercise of the Warrants by such Holders.

                             12
<PAGE>
               10.4 Indemnification.

               (a) Subject to the terms of this Section 10, the
Company will indemnify and hold harmless each Holder, its
directors and officers, and each person, if any, who controls the
Holder within the meaning of Section 15 of the Act or Section
20(a) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), from and against, and will reimburse the Holder
and each such controlling person with respect to, any and all
loss, damage, liability, cost and expense to which such holder or
controlling person may become subject under the Act or otherwise,
insofar as such losses, damages, liabilities, costs or expenses
are caused by any untrue statement or alleged untrue statement of
any material fact contained in a Registration Statement filed
with the Commission pursuant to Section 10, any prospectus
contained therein or any amendment or supplement thereto, or
arise out of, or are based upon, the omission or alleged omission
to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the
circumstances in which they were made not misleading; provided,
however, that the Company will not be liable in any such case to
the extent that any such loss, damage, liability, cost or expense
arises out of, or is based upon, an untrue statement or alleged
untrue statement or omission or alleged omission so made in
conformity with information furnished by a Holder or such
controlling person in writing specifically for use in the
preparation thereof.

               (b)  Subject to the terms of this Section 10, each
Holder will severally, and not jointly, indemnify and hold
harmless the Company, its directors and officers, any controlling
person and any underwriter from and against, and will reimburse
the Company, its directors and officers, any controlling person
and any underwriter with respect to, any and all loss, damage,
liability, cost or expense to which the Company or any
controlling person and/or any underwriter may become subject
under the Act or otherwise, insofar as such losses, damages,
liabilities, costs or expenses are caused by any untrue statement
or alleged untrue statement of any material fact contained in
such Registration Statement filed with the Commission  pursuant
to Section 10, any prospectus contained therein or any amendment
or supplement thereto, or arise out of, or are based upon, the
omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they were made,
not misleading, in each case to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or
omission or alleged omission was so made in reliance upon, and in
strict conformity with, written information furnished by, or on
behalf of, the Holder specifically for use in the preparation
thereof.

               (c)  Promptly after receipt by an indemnified
party pursuant to the provisions of Section 10.4(a) or 10.(b) of
notice of the commencement of any action involving the subject
matter of the foregoing indemnity provisions, such indemnified
party will, if a claim thereof is to be made against the
indemnifying party pursuant to the provisions of Section 10.4(a)
or 10.4(b), promptly notify the indemnifying party of the
commencement thereof; but the omission to so notify the
indemnifying party will not relieve the indemnifying party from
any liability which it may have to any indemnified party
otherwise than hereunder.  In case such action is brought against
any indemnified party and the indemnified party notifies the
indemnifying party of the commencement thereof, the indemnifying

                            13
<PAGE>
party shall have the right to participate in, and, to the extent
that it may wish, assume the defense thereof; or, if there is a
conflict of interest which would prevent counsel for the
indemnifying party from also representing the indemnified party,
(or, in the event that the indemnified party and the indemnifying
party are both named as parties in the action and it is
reasonably determined, in good faith, by counsel for the
indemnified party and counsel for the indemnifying party that
there is such a conflict) the indemnified parties have the right
to select only one (1) separate counsel to participate in the
defense of such action on behalf of all such indemnified parties.
After notice from the indemnifying parties to such indemnified
party of the indemnifying parties' election so to assume the
defense thereof, the indemnifying parties will not be liable to
such indemnified parties pursuant to the provisions of said
Section 10.4(a) or 10.4(b) for any legal or other expense
subsequently incurred by such indemnified parties in connection
with the defense thereof, other than reasonable costs of
investigation, unless (a) the indemnified parties shall have
employed counsel in accordance with the provisions of the
preceding sentence; (b) the indemnifying parties shall not have
employed counsel satisfactory to the indemnified parties to
represent the indemnified parties within a reasonable time after
the notice of the commencement of the action or (c) the
indemnifying party has authorized the employment of counsel for
the indemnified party at the expense of the indemnifying parties.

     10.5 Majority.  For purposes of this Agreement, the term
"Majority" in reference to the Holders, shall mean in excess of
fifty percent (50%) of the then outstanding Warrants or Warrant
Shares that (y) are not held by the Company, an affiliate,
officer, creditor, employee or agent thereof or any of their
respective affiliates, members of their family, persons acting as
nominees or in conjunction therewith and (z) have not been resold
to the public pursuant to a registration statement filed with the
Commission under the Act.

     11.  Adjustments to Exercise Price and Number of Securities.

          11.1 Subdivision and Combination.  In case the Company
shall at any time subdivide or combine the outstanding shares of
Common Stock, the Exercise Price shall forthwith be
proportionately decreased in the case of subdivision or increased
in the case of combination.

          11.2 Stock Dividends and Distributions.  If the Company
at any time, or from time to time, while the Warrants are
outstanding shall declare or pay, without consideration, any
dividend on the Common Stock payable in Common Stock, then the
Exercise Price shall be proportionately decreased.

          11.3 Adjustment in Number of Securities.  Upon each
adjustment of the Exercise Price pursuant to the provisions of
this Section 11, the number of Warrant Shares issuable upon the
exercise at the adjusted exercise price of each Warrant shall be
adjusted to the nearest full amount by multiplying a number equal
to the Exercise Price in effect immediately prior to such
adjustment by the number of Warrant Shares issuable upon exercise
of the Warrants immediately prior to such adjustment and dividing
the product so obtained by the adjusted Exercise Price.

                            14
<PAGE>

          11.4  Definition of Common Stock.  For the purpose of
this Agreement, the term "Common Stock" shall mean (i) the Common
Stock or (ii) the class of stock designated as Common  Stock in
the Articles of Incorporation of the Company as may be amended as
of the date hereof, or (ii) any other class of stock resulting
from successive changes or reclassifications of such Common
Stock consisting solely of changes in par value, or from par
value to no par value, or from no par value to par value.

          11.5  Merger or Consolidation.  In case of any
consolidation of the Company with, or merger of the Company with,
or merger of the Company into, another corporation (other than a
consolidation or merger in which the Company is the surviving
entity), the corporation formed by such consolidation or merger
shall execute and deliver to each Holder a supplemental warrant
agreement providing that the holder of each Warrant then
outstanding or to be outstanding shall have the right thereafter
(until the expiration of such Warrant) to receive, upon exercise
of such Warrant, the kind and amount of shares of stock and other
securities and property receivable upon such consolidation or
merger, by a holder of the number of shares of Common Stock of
the Company for which such warrant might have been exercised
immediately prior to such consolidation, merger, sale or
transfer.  Such supplemental warrant agreement shall provide for
adjustments which shall be identical to the adjustments provided
in Section 11.  The above provision of this subsection shall
similarly apply to successive consolidations or mergers.

          11.6 No Adjustment of Exercise Price in Certain Cases.
No adjustment of the Exercise Price shall be made:

               (a)  Upon the issuance or sale of the Warrants or
the shares of Common Stock issuable upon the exercise of the
Warrants;

               (b)  If the amount of said adjustment shall be
less than two cents (2 cents) per Warrant Share, provided, however,
that in such case any adjustment that would otherwise be
required then to be made shall be carried forward and shall be
made at the time of and together with the next subsequent
adjustment which, together with any adjustment so carried
forward, shall amount to at least two cents (2 cents) per Warrant
Share.

     12.  Exchange and Replacement of Warrant Certificates.  Each
Warrant Certificate is exchangeable without expense, upon the
surrender thereof by the registered Holder at the principal
executive office of the Company, for a new Warrant Certificate of
like tenor and date representing in the aggregate the right to
purchase the same number of Warrant Shares in such denominations
as shall be designated by the Holder thereof at the time of such
surrender.

     Upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation
of any Warrant Certificate, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to
it, and reimbursement to the Company of all reasonable expense
incidental thereto, and upon surrender and cancellation of the

                           15
<PAGE>
Warrants, if mutilated, the Company will make and deliver a new
Warrant Certificate of like tenor, in lieu thereof.

     13.  Elimination of Fractional Interests.  The Company shall
not be required to issue certificates representing fractions of
shares of Common Stock upon the exercise of the Warrants,
nor shall it be required to issue scrip or pay cash in lieu of
fractional interests, it being the intent of the parties that all
fractional interests shall be eliminated by rounding any fraction
up to the nearest whole number of shares of Common Stock or other
securities, properties or rights.

     14.  Reservation and Listing of Securities.  The Company
shall at all times reserve and keep available out of its
authorized shares of Common Stock, solely for the purpose of
issuance upon the exercise of the Warrants, such number of shares
of Common Stock or other securities, properties or rights as
shall be issuable upon the exercise thereof.  The Company
covenants and agrees that, upon exercise of the Warrants and
payment of the Exercise Price therefor, all shares of Common
Stock and other securities issuable upon such exercise shall be
duly and validly issued, fully paid, non-assessable and not
subject to the preemptive rights of any stockholder.  As long as
the Warrants shall be outstanding, the Company shall use its
reasonable efforts to cause all shares of Common Stock issuable
upon the exercise of the Warrants to be listed (subject to
official notice of issuance) on all securities exchanges on which
the Common Stock issued to the public in connection herewith may
then be listed and/or quoted.

     15.  Notices to Warrant Holders.  Nothing contained in this
Agreement shall be construed as conferring upon the Holders the
right to vote or to consent or to receive notice as a stockholder
in respect of any meetings of stockholders for the election of
directors or any other matter, or as having any rights whatsoever
as a stockholder of the Company.  If, however, at any time prior
to the expiration of the Warrants and their exercise, any of the
following events shall occur:

          (a)  the Company shall take a record of the holders of
its shares of Common Stock for the purpose of entitling them to
receive a dividend or distribution payable otherwise than in
cash, or a cash dividend or distribution payable otherwise than
out of current or retained earnings, as indicated by the
accounting treatment of such dividend or distribution on the
books of the Company;
or

          (b)  the Company shall offer to all the holders of its
Common Stock any additional shares of capital stock of the
Company or securities convertible into or exchangeable for shares
of capital stock of the Company, or any option, right or warrant
to subscribe therefor; or

          (c)  a dissolution, liquidation or winding up of the
Company (other than in connection with a consolidation or merger)
or a sale of all or substantially all of its property, assets and
business as an entirety shall be proposed;

then, in any one or more of said events, the Company shall give
written notice of such event at least fifteen (15) days prior to
the date fixed as a record date or the date of closing the

                               16
<PAGE>
transfer books for the determination of the stockholders entitled
to such dividend, distribution, convertible or exchangeable
securities or subscription rights, or entitled to vote on such
proposed dissolution, liquidation, winding up or sale.  Such
notice shall specify such record date or the date of closing the
transfer books, as the case may be.  Failure to give such notice
or any defect therein shall not affect the validity of any action
taken in connection with the declaration or payment of any such
dividend, or the issuance of any convertible or exchangeable
securities, or subscription rights, options or warrants, or any
proposed dissolution, liquidation, winding up or sale.

     16.  Notices.

     All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been
duly made and sent when delivered, or mailed by registered or
certified mail, return receipt requested:

          (a)  If to a registered Holder of the Warrants, to the
address of such Holder as shown on the books of the Company; or

          (b)  If to the Company, to the address set forth in
Section 5 hereof or to such other address as the Company may
designate by notice to the Holder; or

          (c)  If to Ryan, Beck & Co., Inc., to Ryan, Beck & Co.,
Inc. 200 Park Avenue, New York, NY 10166, Attention Randy F.
Rock; or

          (d)  If to Larkspur Capital Corporation, to Larkspur
Capital Corporation, 445 Park Avenue, New York, NY 10022,
Attention: Robert L. Goodwin.

     17.  Supplements and Amendments.  The Company and Ryan, Beck
& Co. may from time to time supplement or amend this Agreement
without the approval of any Holder in order to cure any
ambiguity, to correct or supplement any provision contained
herein which may be defective or inconsistent with any provisions
herein, or to make any other provisions in regard to matters or
questions arising hereunder which the Company and Ryan, Beck &
Co. may deem necessary or desirable and which the Company and
Ryan, Beck & Co. deem shall not adversely affect the interests of
the Holders.

     18.  Successors.  All the covenants and provisions of this
Agreement shall be binding upon and inure to the benefit of the
Company, each Holder and their respective successors and assigns
hereunder.

     19.  Termination.  This Agreement shall terminate at the
close of business on January 25, 2005.

     20.  Governing Law; Submission to Jurisdiction.  This
Agreement and each Warrant Certificate issued hereunder shall be
deemed to be a contract made under the laws of the State of

                           17
<PAGE>
Delaware and for all purposes shall be construed in accordance
with the laws of said State without giving effect to the rules of
said State governing the conflicts of laws.

     The Company, the Agents and each Holder hereby agrees that
any action, proceeding or claim against it arising out of, or
relating in any way to, this Agreement shall be brought and
enforced in the federal courts located in Wilmington, Delaware,
and irrevocably submits to such jurisdiction, which jurisdiction
shall be exclusive.  The Company, the Agents and each Holder
hereby irrevocably waives any objection to such exclusive
jurisdiction or inconvenient forum.  Any such process or summons
to be served upon any of the Company, the Agents and the
Holder(s) (at the option of the party bringing such action,
proceeding or claim) may be served by transmitting a copy
thereof, by registered or certified mail, return receipt
requested, postage prepaid, addressed to it at the address set
forth in Section 16 hereof.  Such mailing shall be deemed
personal service and shall be legal and binding upon the party so
served in any action, proceeding or claim.  The Company, the
Agents and the Holder(s) agree that the prevailing party(ies) in
any such action or proceeding shall be entitled to recover from
the other party(ies) all of its/their reasonable legal costs
and expenses relating to such action or proceeding and/or
incurred in connection with the preparation therefor.

     21.  Entire Agreement; Modification.  This Agreement
contains the entire understanding between the parties hereto with
respect to the subject matter hereof and may not be modified or
amended except by a writing duly signed by the party against whom
enforcement of the modification or amendment is sought.

     22.  Severability.  If any provision of this Agreement shall
be held to be invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provision of this
Agreement.

     23.  Captions.  The caption headings of the Sections of this
Agreement are for convenience of reference only and are not
intended, nor should they be construed as, a part of this
Agreement and shall be given no substantive effect.

     24.  Benefits of this Agreement.  Nothing in this Agreement
shall be construed to give to any person or corporation other
than the Company and the Agents and any other Holder any legal
or equitable right, remedy or claim under this Agreement; and
this Agreement shall be for the sole benefit of the Company and
the Agents and any other registered Holder.

     25.  Counterparts.  This Agreement may be executed in any
number of counterparts and each of such counterparts shall for
all purposes be deemed to be an original, and such counterparts
shall together constitute but one and the same instrument.

     26.  Assignment.  This Agreement may not be assigned without
prior written consent of all parties hereto.  The Warrants
granted hereunder may be assigned in part, or in whole if prior
to any such assignment the assignee executes and delivers to the
Company a Certification, the form and content of which must be

                             18
<PAGE>
satisfactory to the Company, in which such assignee represents to
the Company that such assignee is an "accredited investor" under
Rule 501 of Regulation D promulgated under the Act and how such
assignee is an accredited investor, and that such assignee is
acquiring such designated Warrants for the assignees' own
account, for investment purposes only and not with a view toward
distribution or resale and agrees to be subject to and bound by
all of the other conditions and provisions of this Agreement
(including, but not limited to, the representations, warranties
and covenants contained in Sections 3 and 7 hereof) and such
assignee shall execute and deliver to the Company an agreement in
form and substance substantially the same as this Agreement
except for the name and number of Warrants to be issued to the
assignee.

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed, as of the day and year first above
written.

                       PERMA-FIX ENVIRONMENTAL SERVICES, INC.

                       By:
                          _______________________________________
                          Dr. Louis F. Centofanti
                          Chief Executive Officer

                       RYAN, BECK & CO., INC.

                       By:
                          ______________________________________
                          Name:
                          Title:

                        LARKSPUR CAPITAL CORPORATION

                        By:
                           ______________________________________
                           Name:
                           Title:

                           19

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