Document:

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                               PERMA-FIX
                        ENVIRONMENTAL SERVICES, INC.
                        ===========================

July 25, 2000

Mr. Gary Dixon
Congress Financial Corporation (Florida)
777 Brickell Avenue, Suite 808
Miami, FL 33131

Re:  Acquisition of 80% Equity Interest in M&EC

Dear Gary:

Pursuant  to our discussion, please find enclosed a copy  of  the
letter  of  intent  for  the purchase by Perma-Fix  Environmental
Services,  Inc.  of  an  80% equity interest  in  East  Tennessee
Materials  and  Energy Corporation ("M&EC").  This  represents  a
very  strategic  acquisition of a unique  mixed  waste  facility,
which is located directly on a Department of Energy ("DOE")  site
and holds three Broad Spectrum contracts.  The combination of the
Gainesville mixed waste facility, DSSI, and now M&EC places Perma-
Fix  in  a commanding position to capture a large portion of  the
mixed  waste  market.  As you may recall, M&EC is in  a  start-up
mode,  currently designing and building the processing equipment,
after  having spent a great deal of time and money obtaining  the
RAD  license and RCRA permits, leasing and preparing the facility
within  the K-1200 DOE building and putting a structure in  place
to  be able to begin processing.  Attached for your reference  is
the  current financial model, as is being used by Ryan, Beck  and
Larkspur  Capital,  and  an initial draft  of  a  June  30,  2000
proforma balance sheet.

As  a  condition of the letter of intent and in an effort to meet
the   conditions  of  the  Broad  Spectrum  contracts  for  waste
processing  deadlines, Perma-Fix agreed to loan M&EC  $50,000  at
the  date  of signing the letter of intent and certain additional
funds  over the next several months, as required to complete  the
start-up.   A  portion  of  the `use of funds'  from  the  equity
offering  was  specifically  for  the  purpose  of  building  the
equipment, $2.0 million in the initial models, which has now been
expanded for an additional  $4.0 million of start-up and  working
capital  funds,  both  of which are to now  be  funded  from  the
proposed  $25.0 million of equity/sub-debt offering.   All  funds
loaned  by  PESI to M&EC will be documented on a promissory  note
and  security  agreement to be repaid over a proposed  three-year
period, with interest only (at prime plus 1 3/4%) during the  first
year.   As  discussed, a portion of the $750,000 RBB Bank  bridge
loan was intended to fund such M&EC acquisition activities.

      1940 N.W. 67TH PLACE, SUITE A * GAINESVILLE, FL  32653 *
            TEL. (352) 373-4200 * FAX (352) 373-0040

<PAGE>
Pursuant  to  the terms of our loan and security  agreement  with
Congress  Financial, we would like to request your  approval  and
consent to loan to M&EC the initial $50,000, as contained in  the
letter   of  intent,  and  certain  additional  funds  as  deemed
appropriate by management so as to initiate processing under  the
Broad Spectrum contract.

Please advise if you have any questions or concerns on the above.

Sincerely,

/s/ Richard T. Kelecy

Richard T. Kelecy
Chief Financial Officer

Approval and Consent:

/s/ Gary Dixon     VP
_________________________
Gary Dixon

7/31/00
_______________
Date

RTK/sm

cc:  Dr. Louis F. Centofanti

Enclosure(s)Perma-Fix Environmental Services, Inc.

Dear Mr. Strauss:

     This letter agreement (Letter Agreement) is to provide the
terms and conditions under which RBB Bank Aktiengesellschaft,  a
bank  organized under the laws of Austria (RBB Bank)  as  agent
for  certain  of  its  clients, shall loan $750,000  to  Chem-Met
Services, Inc., a Michigan corporation (Chem-Met).  Chem-Met is
a  wholly  owned subsidiary of Perma-Fix Environmental  Services,
Inc., a Delaware corporation (PESI).

Loan.
     Subject  to  and  upon  the terms and  conditions  contained
herein, RBB Bank agrees to make a term loan (the Loan) to Chem-
Met  in the aggregate principal amount of $750,000.  Within three
(3) days of the date of this Letter Agreement, RBB  Bank  shall
deliver to Chem-Met $750,000 in cash.  The terms  of  the  loan
shall be as set forth in the Promissory Note, dated July 14,
2000, executed by Chem-Met.

Warrants.
     In  order to induce RBB Bank into granting the Loan to Chem-
Met, PESI has agreed that if all principal and accrued and unpaid
interest under the Loan is not paid in full by 5:00 p.m. New York
time  on  September 1, 2000 then PESI shall issue to RBB  Bank  a
five (5) year warrant to purchase up to 100,000 shares  of  PESI
Common Stock, par value $.001 per share (the ACommon Stock@),  at
an exercise price equal to the closing market price of the Common
Stock on the National Association of Securities Dealers Automated
Quotation System SmallCap Market (NASDAQ) on September 1, 2000.

     If  all principal and accrued and unpaid interest under  the
Loan is not paid in full by 5:00 p.m. New York time on October 1,
2000 then PESI shall issue to RBB Bank a five (5) year warrant to
purchase up to an additional 150,000 shares of Common Stock at an
exercise  price equal to the closing market price of the Common
Stock on the NASDAQ on October 2, 2000.

     If  all principal and accrued and unpaid interest under  the
Loan is not paid in full by 5:00 p.m. New York time on November 1,
2000 then PESI shall issue to RBB Bank a five (5) year warrant
to purchase up to an additional 200,000 shares of Common Stock at
an exercise price equal to the closing market price of the Common
Stock on the NASDAQ on November 1, 2000.

     If  all principal and accrued and unpaid interest under  the
Loan is not paid in full by 5:00 p.m. New York time on December 1,
2000 then PESI shall issue to RBB Bank a five (5) year warrant
to purchase up to an additional 250,000 shares of Common Stock at
an exercise price equal to the closing market price of the Common
Stock  on  the  NASDAQ  on December 1, 2000.   Collectively,  the
warrants  are hereinafter referred to as the Warrants and the
shares  of  Common  Stock  to be issued  upon  exercise  of  such
Warrants  are  hereinafter referred to as the Warrant Shares.
Notwithstanding  anything to the contrary, if all  principal  and
accrued and unpaid interest under the Loan is paid  in  full  by
5:00 p.m. New York time on September 1, 2000 then PESI shall have
no obligation to issue any Warrants to RBB Bank.
<PAGE>
     The Warrants shall be executed by both PESI and RBB Bank and
shall contain appropriate investment representations, warranties
and covenants.  The issuance of the Warrants and Warrant Shares
are subject to appropriate corporate and regulatory authority
approval.

Use of Proceeds.
     Chem-Met may use the proceeds of the Loan for any purposes
which it deems appropriate in the best interest of Chem-Met and
PESI.

Miscellaneous.

     a.   Amendment;  Waiver.  Neither this Letter Agreement  nor
          the  Warrants shall be changed, modified or amended  in
          any  respect except by the mutual written agreement  of
          the  parties  hereto.   Any provision  of  this  Letter
          Agreement  or the Warrants may be waived in writing  by
          the  party  which is entitled to the benefits  thereof.
          No  waiver of any provision of this Letter Agreement or
          the Warrants shall be deemed to, or shall constitute  a
          waiver  of,  any  other  provision  hereof  or  thereof
          (whether or not similar), nor shall nay such waiver
          constitute a continuing waiver.

     b.   Binding  Effect; Assignment.  Except as stated in  this
          Section,   neither  this  Letter  Agreement   nor   the
          Warrants,  nor any rights or obligations  hereunder  or
          thereunder,  are  assignable  by  RBB  Bank.    It is
          understood  and acknowledged by PESI that the Warrants
          shall  be held by RBB Bank as agent for certain of  its
          clients  who  have  provided to RBB Bank  the  $750,000
          described  in  this Letter Agreement.   Therefore,  the
          Warrants  may  be  proportionately  assigned  to   such
          clients  who  qualify  as  an  accredited  investor  as
          defined   in  Rule  501  of  Regulation  D  under   the
          Securities Act of 1933, as amended.

     c.   Governing Law; Litigation Costs.  This Letter Agreement
          and its validity, construction and performance shall be
          governed  in all respects by the internal laws  of  the
          State of Delaware without giving effect to such State's
          conflicts of laws provisions.

     d.   Counterparts.  This Letter Agreement may be executed in
          one or more original or facsimile counterparts, each of
          which  shall  be deemed an original and  all  of  which
          shall be considered one and the same agreement, binding
          on  all of the parties hereto, notwithstanding that all
          parties  are  not signatories to the same  counterpart.
          Upon delivery of an executed counterpart by RBB Bank to
          Chem-Met  and  PESI,  which in  turn  is  executed  and
          delivered  by  the  Chem-Met  and  PESI,  this   Letter
          Agreement  shall  be binding as one original  agreement
          among RBB Bank, PESI and Chem-Met.

     e.   Entire  Agreement.  This Letter Agreement,  along  with
          the  Warrants merges and supersedes any and  all  prior
          agreements,  understandings,  discussions,  assurances,

                                      -2-
<PAGE>
          promises,  representations  or  warranties  among   the
          parties with respect to the subject matter hereof,  and
          contains  the  entire agreement among the parties  with
          respect  to  the  subject matter set forth  herein  and
          therein.

     f.   No  Third  Party Beneficiaries.  This Letter  Agreement
          and the rights, benefits, privileges, interests, duties
          and  obligations contained or referred to herein  shall
          be  solely for the benefit of the parties hereto and no
          third party shall have any rights or benefits hereunder
          as a third party beneficiary or otherwise hereunder.

                                   PERMA-FIX ENVIRONMENTAL
                                   SERVICES, INC.

                                   By  /s/ Louis Centofanti
                                      ____________________________
                                         Dr. Louis F. Centofanti
                                         Chief Executive Officer

Accepted and agreed to by RBB Bank this 12 day of July, 2000.
                                       ____

                                   RBB BANK AKTIENGESELLSCHAFT

                                   By /s/ Herbert Strauss
                                     ____________________________
                                         Herbert Strauss
                                         Headtrader

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