Document:

Exhibit 4.1

Summary in the English language of a syndicated loan facility (the “Syndicated Loan Facility”)

	
  
Date:
  	
  
May 9, 2005
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Borrowers:
  	
  
Ducati Motor Holding S.p.A. (“DMH”) and Ducati Corse   S.r.l. (“DC”).
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Lending Banks:
  	
  
Unicredit Banca d’Impresa   S.p.A., Banca Nazionale del Lavoro S.p.A., Banca Intesa S.p.A., Monte dei   Paschi di Siena S.p.A., Cassa di Risparmio in Bologna S.p.A., Fortis Bank   S.A. – Succursale in Italia and Banca Popolare di Bergamo S.p.A.
  
	
   
  	
  
 
  
	
  
Administrative   Agent:
  	
  
Unicredit Banca d’Impresa   S.p.A.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Arranger:
  	
  
UniCredit Banca Mobiliare   S.p.A.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Type of Facility:
  	
  
A 5-year term loan facility (the “Term Credit   Facility”) and a 364-day renewable term revolving credit facility (the   “Revolving Credit Facility”)
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
  Purpose:
  	
  
The Term Credit Facility   will be primarily used by DMH to repay the outstanding €54.2 million of DMH’s   6.5% notes due May 31, 2005 and to repay loans taken out to fund the   repurchase of some of these 6.5% notes.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
The Revolving Credit   Facility will be used by DMH to fund working capital requirements and by DC   to fund a portion of the price for its purchase from DMH of the ‘Ducati   Corse’ brand.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Facility
   Amount:
  	
  
The total amount available under the Syndicated Loan   Facility is €100,000,000, with €63,636,363.62 available under the Term Credit   Facility and €36,363,636.38 available under the Revolving Credit Facility.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
The amount available under the Term Credit Facility   is available only to DMH and must be drawn down at one time, up to the total   available amount of €63,636,363.62.
  
	
   
  	
  
 
  
	
  
 
  	
  
Up to €16 million is available to DC under the   Revolving Credit Facility,   with the difference between the amount drawn down by DC and € 36,363,636.38   at any given time, available to DMH.    The first draw down by DC under the Revolving Credit Facilty must be   for the whole € 16 million available to it.
  

	
  
Maturity:
  	
  
The Term Credit Facility matures five years from the   date of the contract.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
The Revolving Credit Facility matures 364 days from   the date of the contract and may be renewed up to four times, for successive   364-day periods at the request of the Borrowers if certain financial targets   have been met.
  
	
  
 
  	
  
 
  
	
  
  Interest:
  	
  
The Term Credit Facility initially bears interest at   the rate of 150 basis points over the Euribor, subject to a leverage-based   margin ratchet described below.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
The Revolving Credit Facility initially bears interest at   the rate of 120 basis points over the Euribor, subject to a leverage-based   margin ratchet described below.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
The Borrowers may select one-, three-, or six-month   Euribor interest periods.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
The interest rate on both the Term Credit Facility and the Revolving Credit Facility may step up to as high as   200 basis points over the Euribor for the Term Credit Facility and 175 points over the Euribor for the Revolving   Credit Facility, or step down   to as low as 75 basis points over the Euribor for the Term Credit Facility and 50 points over one-,   three-, or six-month Euribor, as applicable, for the Revolving Credit Facility depending on the level of   DMH’s consolidated leverage ratio.
  
	
  
   
  	
    
 
  	
  
 
  	
  
 
  
	
  
Security Interests and Guarantees:
  	
  
DMH:
  
	
  
 
  	
  
Amounts borrowed by DMH under the Syndicated Loan   Facility are secured by pledges by DMH of:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
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all present and future shares of DC owned by DMH;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
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all present and future shares of Ducati North America   owned by DMH; and
  
	
  
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
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the “Ducati” trademark.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
DMH grants the Lending Banks a floating lien on its   equipment and inventory.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
DMH also guarantees Lending Banks the prompt   fulfillment of DC’s obligations under the Revolving Credit Facility.
  

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DC:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Amounts borrowed by DC under the Revolving Credit   Facility are secured by a pledge by DC of the “Ducati Corse” trademark.
  
	
  
 
  	
   
  	
  
 
  	
  
 
  
	
  
Principal Conditions
   Precedent to the
   Disbursement under the
   Term Credit Facility
  	
  
 
  	
  
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Execution of guarantee documentation, perfection of   security interests and deposit with the Italian Copyright and Trademark   Office of pledges on the trademarks “Ducati” and “Ducati Corse”;
  
	
  and each Disbursement
  	
  
 
  	
  
 
  	
  
 
  
	
  
and Renewal under the
   Revolving Credit
   Facility:
  	
  
 
  	
  
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All representations and warranties under the loan   agreement are true and current as of the date of request for disbursement;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
   
  	
  
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No occurrence of an event of default (as defined   below);
  
	
   
  	
   
  	
  
 
  	
  
 
  
	
   
  	
   
  	
  
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Borrowers’ compliance with all Financial Covenants   (as defined below);
  
	
   
  	
   
  	
  
 
  	
  
 
  
	
   
  	
   
  	
  
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No occurrence of a “substantially negative event”   (defined to mean an event or circumstance having substantial, prejudicial   consequences for the economic or financial situation of a Borrower that would   prejudice rights of the Lending Banks under the Syndicated Loan Facility;
  
	
   
  	
   
  	
  
 
  	
  
 
  
	
   
  	
   
  	
  
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No change of control of DMH; and
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
   
  	
  
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DMH has paid all costs and fees due under the loan   agreement.
  
	
   
  	
   
  	
  
 
  	
  
 
  
	
  
Negative Covenants:
  	
  
 
  	
  
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Neither Borrower may pay dividends or make other   distributions that would cause a violation of the Financial Covenants.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
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Neither Borrower may sell or transfer all or part of   its assets, other than sales and transfers:    (i) that are in the ordinary course of business; (ii) of assets that   are obsolete or are no longer necessary for its business; (iii) of a minority   interest in another company, the book value of which does not exceed €1   million; or (iv) that are intra-group and do not materially reduce the value   of the collateral.
  

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Neither Borrower may effect a capital reduction,   except that each Borrower may reduce its share capital if required by law and   DMH may repurchase its own shares provided it does not cause it to be in   violation of the Financial Covenants.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Neither Borrower may grant loans to third parties in   excess of €1 million, except that each Borrower may defer or extend the term   for payment due to it from its customers.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Neither Borrower may enter into any credit   securitization or assignment of receivables without recourse, in addition to   those in existence at the time of signing, except that each Borrower may (i)   when credit securitizations and/or assignments of receivable terminate, enter   into new, analogous transactions to replace receivables that come due, and   (ii) increase the nominal amount of the receivables assigned but not yet   paid.  In either case, these   receivables may not, at any time, exceed 20% of DMH’s revenues during the   previous 12 months.
  
	
   
  	
  
 
  	
  
 
  
	
  
Financial Covenants:
  	
  
DMH will comply with the following financial   covenants:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Ratio of Net Debt to EBITDA of not greater than 3.5   from the date of signing until 12/31/2005, 3.2 from 1/1/2006 to 12/31/2006   and 2.5 thereafter.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Ratio of EBITBA to Net Interest Expense of not less   than 5.0 from the date of signing until 12/31/2005, 6.5 from 1/1/2006 until   12/31/06, and 7.5 thereafter.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
DMH will not make capital expenditures of more than   €34 million in 2005 and €32 million in each year thereafter.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Neither Borrower may incur indebtedness, other than   lines of credit providing for advances on invoices to customers, financial   debt incurred in the ordinary course of business (including capital leases),   financial debt that is subordinated or pari passu to the debt under the   Syndicated Loan Facility, government-subsidized loans or intra-group debt.
  

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When the transition to   IFRS is complete, the Borrowers and the Lending Banks will negotiate in good   faith new financial covenants and related definitions to reflect the   transition.  Until the Borrowers and   Lending Banks have agreed upon new covenants, the Borrowers must produce   financial statements in Italian GAAP and the covenants and definitions will   remain unchanged and continue to be calculated based on such Italian GAAP   financial statements.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
General/Other Covenants:
  	
  
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Unless otherwise permitted, neither Borrower may   assume financial obligations unless the obligations are subordinate to its   obligations under the Syndicated Loan Agreement.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Neither Borrower may enter into derivative financial   instruments or currency swaps other than those used in the ordinary course of   business to cover exchange rate and interest rate risks.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Each Borrower must enter into hedging contracts to   cover the interest rate risk associated with the entire amount of the Term   Credit Facility by June 30, 2005.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Neither Borrower may acquire businesses,   subsidiaries of businesses or shares (with certain exceptions), nor may   either be subject to mergers, acquisitions, demergers or spin-offs of   businesses or subsidiaries.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Each Borrower will use the proceeds from the Syndicated   Loan Facility exclusively for the stated purposes.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Neither Borrower will amend its by-laws in a manner   that would prejudice its ability to fulfill its obligations under the   Syndicated Loan Facility.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Neither Borrower may grant liens to third parties   ranking prior to the liens securing the Syndicated Loan Facility to third   parties, with the exception of liens granted in the ordinary course of   business.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Other provisions and covenants customary for a   facility of this nature.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Optional
   Prepayment:
  	
  
Either Borrower may prepay without penalty all or   part of the amount outstanding under the Syndicated Loan Facility, in minimum   amounts of €2 million and in multiples of €1 million, provided that the date of prepayment   coincides with the end of an interest period and notice is given to the Lead   Bank.
  

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Mandatory
   Prepayment:
  	
  
DMH must prepay amounts outstanding under the Term   Credit Facilty equal to: (1) the net proceeds of any debt instruments issued   or guaranteed by DMH, and (2) 25% of the net cash received from any increase   in DMH’s share capital (excluding cash received from share capital increases   in connection with stock option plans), in either case if at any time the   ratio of its Net Financial Position to EBITDA is greater than or equal to 2,   or would be as a result of the contemplated transaction.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Principal Events of
   Default:
  	
  
Lenders will be immediately entitled to accelerate   the loan in the event of the following events of default:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
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Insolvency or bankruptcy of either Borrower; and
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Delisting of DMH’s shares from the Mercato Telematico Azionario.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Lenders will be entitled to accelerate the loans if   the following defaults are not cured within 15 business days of Lenders’   notice:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Failure to pay principal, interest, fees or any   other amounts due under the Syndicated Loan Facility within 5 business days   after such payment has become due;
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Use of proceeds for purposes other than for purposes   stated in the Syndicated Loan Facility:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Representations and warranties incorrect: and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Failure to comply with certain covenants, including   Financial Covenants and certain Negative Covenants.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
Lenders will be entitled to accelerate the loans if   the following defaults are not cured within 10 business days of Lenders’   notice:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
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Cessation of current business activity or change   from current business to substantially different business;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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Ius superveniens   or the occurrence of any other superceding event outside of the Borrowers’   control;
  

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The occurrence of events or circumstances having an   material adverse effect on the business, financial condition and results of   operations of a Borrower that would prejudice the ability of the Borrowers to   perform their obligations under the Syndicated Loan Facility (each such   effect, a “Material Adverse Effect”);
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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The credit agreement, the security interests or the   guarantees, or any of the rights connected with any of them, are not or cease   to be valid and binding on or enforceable against the relevant Borrower, so   as to materially prejudice the Lending Banks’ rights;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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DMH’s external auditor expresses reservations in its   audit opinion relating to DMH’s financial statements that, in the opinion of   the Lending Banks, could have a Material Adverse Effect;
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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A failure to pay principal or interest due under any   contract for indebtedness with a bank or other financial institution within   10 business days after payment has become due; and
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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A change of control.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Governing
   Law:
  	
  
The laws of Italy.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
Choice of Forum:
  	
  
The Autorità   Giudiziaria Ordinaria of Bologna, Italy, shall be the exclusive   forum for any disputes.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Defined Terms:
  	
  
EBITDA: the   consolidated earnings of DMH, calculated in accordance with GAAP, excluding:   (a) interest income and expenses; (b) profits or losses as a result of   changes in exchange rates; (c) taxes; (d) amortization and all other non-cash   charges relating to tangible or intangible assets; (e) profits or losses   attributable to minority interestholders in the DMH group; (f) mark-ups or   markdowns of equity interests; and (g) any extraordinary profit or loss,   including adjustments of duties and taxes for prior fiscal years, and costs   relating to restructuring or reduction of personnel.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Net   Interest Expense:  The amount of interest (including interest   under financial leasing contracts) paid by companies in the DMH group   (“Ducati Group Companies”) to financial counterparties in connection with the   Financial Debt of the Ducati Group Companies, minus interest and other   financial proceeds received by Ducati Group Companies, and excluding bank   fees, other fees paid to financial institutions, cash discounts and exchange   rate differences.
  

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Net Debt:    The full amount of the Financial Debt minus (i) bank account balances   payable upon request; (ii) shares of DMH not exceeding 5% of DMH’s share   capital; (iii) certificates of deposit; (iv) bonds issued or guaranteed by   European Union Member States, the United States or their subdivisions or   agencies; (v) interests in money market funds that have a rating of at least   A-1 from Standard & Poor’s Rating Services or Fitch Rating Ltd and at   least P-1 from Moody’s Investor Services Limited and invest substantially all   their funds in the assets described above; and (vi) the asset back securities   relating to the existing securitization program and the credit link note   relating to the outstanding notes of DMH.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Financial   Debt:  Any debt (other than unpaid interest,   commissions and other fees related to it) in respect of: (i) loans   from banks or other financial institutions, (ii) issuance of bonds or similar   debt instruments, (iii) debt under securitization transactions, and (iv)   financial leases; excluding (a) any guarantee, bond, stand-by letter of   credit or similar instrument entered into in the course of commercial   activities; (b) net unrealized profits/losses due to exchange rate   variations; (c) amortization or capitalization of interest expenses (if any);   and (d) any interest or similar expense included in prepaid expenses or   deferred income related to the items listed in (i) through (iv) above.
  

8Exhibit 4.1

                                 AMENDMENT NO. 5

                                       TO

               REVOLVING CREDIT, TERM LOAN AND SECURITY AGREEMENT

         THIS AMENDMENT NO. 5 ("Amendment") is entered into as of June 29, 2005
by and among PERMA-FIX ENVIRONMENTAL SERVICES, INC., a corporation organized
under the laws of the State of Delaware ("Borrower"), PNC BANK, NATIONAL
ASSOCIATION ("PNC"), the various other financial institutions (together with
PNC, collectively the "Lenders") named in or which hereafter become a party to
the Loan Agreement (as hereafter defined) and PNC as agent for Lenders (in such
capacity, "Agent") and as Issuing Bank.

                                   BACKGROUND

         Borrower, Agent and Lenders are parties to a Revolving Credit, Term
Loan and Security Agreement dated as of December 22, 2000 (as amended,
supplemented or otherwise modified from time to time, the "Loan Agreement")
pursuant to which Lenders provide Borrower with certain financial
accommodations.

         Borrower has requested that Lenders amend certain provisions of the
Loan Agreement and Agent, on behalf of Lenders is willing to do so on the terms
and conditions hereafter set forth.

         NOW, THEREFORE, in consideration of any loan or advance or grant of
credit heretofore or hereafter made to or for the account of Borrower by
Lenders, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

         1.       Definitions. All capitalized terms not otherwise defined
herein shall have the meanings given to them in the Loan Agreement.

         2.       Amendment to Loan Agreement. Subject to satisfaction of the
conditions precedent set forth in Section 3 below, the Loan Agreement is hereby
amended as follows:

                  (a)      Section 1.2 of the Loan Agreement is hereby amended
to provide as follows:

                           (i)      The following defined terms are added in
their appropriate alphabetical order:

                  "Additional Mortgaged Property" shall mean any Credit Party's
                  Real Property located at 2010 NW 67th Place, Gainesville,
                  Florida; 10225 General Drive, Orlando, Florida; 1500 Carbon
                  Avenue, Baltimore, Maryland; and 3200 Sun Street, Baltimore,
                  Maryland.

                  "Amendment No. 5" shall mean Amendment No. 5 to Revolving
                  Credit, Term Loan and Security Agreement dated as of June 29,
                  2005.
<PAGE>

                  "Amendment No. 5 Effective Date" shall mean the date when the
                  conditions of effectiveness set forth in Section 3 of
                  Amendment No. 5 have been met to Agent's satisfaction.

                  "Term Loan Effective Date" shall mean the date on which the
                  conditions of Section 8.3 have been met to the Agent's
                  satisfaction.

                           (ii)     The following defined terms are amended in
their entirety to provide as follows:

                  "Maximum Term Loan Amount" shall mean (a) prior to the Term
                  Loan Effective Date, $2,583,351 minus the sum (without
                  duplication) of all actual and required repayments thereof
                  after the date of Amendment No. 5 as of the date of
                  determination, and (b) as of the Term Loan Effective Date,
                  $7,000,000 minus the sum (without duplication) of all actual
                  and required repayments thereof after the Term Loan Effective
                  Date as of the date of determination.

                  "Mortgaged Property" shall mean any Credit Party's Real
                  Property located at 657 Gallaher Road, Kingston, Tennessee;
                  300 S. West End Avenue, Dayton, Ohio; 1940 NW 67th Place,
                  Suite A, Gainesville, Florida; 2010 NW 67th Place,
                  Gainesville, Florida; 10100 Rocket Boulevard, Orlando,
                  Florida; 10225 General Drive, Orlando, Florida; 1500 Carbon
                  Avenue, Baltimore, Maryland; and 3200 Sun Street, Baltimore,
                  Maryland, each as described in more detail on Schedule 4.19.

                  (b)      Section 2.5 of the Loan Agreement is hereby amended
in its entirety to provide as follows.

                  "2.5. Term Loan. Subject to the terms and conditions of this
                  Agreement, each Lender, severally and not jointly, made a term
                  loan to borrower on the Closing Date in the sum equal to such
                  Lender's Commitment percentage of $7,000,000 (the "Original
                  Term Loan"), of which the outstanding principal balance as of
                  the Amendment No. 5 Effective Date is $2,583,351. On the Term
                  Loan Effective Date, each Lender, severally and not jointly,
                  shall make an additional term loan to Borrower in the sum
                  equal to such Lender's Commitment Percentage of such amount as
                  is necessary to cause the Term Loan (as hereinafter defined)
                  to equal $7,000,000 on the Amendment No. 5 Effective Date,
                  which additional term loan shall be consolidated with and into
                  the outstanding Original Term Loan to make an aggregate term
                  loan in the principal amount of $7,000,000 (as so
                  consolidated, the "Term Loan"). The Term Loan shall be, with
                  respect to principal, payable as follows, subject to
                  acceleration upon the occurrence of an Event of Default under
                  this Agreement or termination of this Agreement: equal monthly
                  payments each in an amount equal to $83,333.33 commencing on
                  the first day of the month following the month in which the
                  Term Loan Effective Date occurs and on the first day of each
                  month thereafter with the final payment of the remaining
                  unpaid principal balance due and payable on the last day of
                  the Term together with accrued interest, costs and expenses.
                  The Term Loan shall be evidenced by one or more secured
                  promissory notes ("Term Note") in substantially the form
                  attached hereto as Exhibit 2.5.

                                        2
<PAGE>

                  (c)      A new Section 8.3 is hereby added to the Loan
Agreement which provides as follows:

                  8.3.     Conditions to Additional Term Loan. The agreement of
                  Lenders to make the additional term loan under Section 2.5 is
                  subject to satisfaction of the following conditions precedent:

                  (a)      the conditions of Section 8.2 shall have been
                  satisfied;

                  (b)      Agent shall have received in form and substance
                  satisfactory to Lenders executed Mortgages for the Additional
                  Mortgaged Property and modifications of the existing Mortgages
                  for all other Mortgaged Property;

                  (c)      Agent shall have received current ALTA as-built
                  surveys for the Additional Mortgaged Property which shall be
                  in form and substance satisfactory to Lenders;

                  (d)      Agent shall have received fully paid mortgagee title
                  insurance polices for all Mortgaged Property (or binding
                  commitments to issue title insurance policies, marked to
                  Agent's satisfaction to evidence the form of such polices to
                  be delivered with respect to the applicable Mortgage), in
                  standard ALTA form, issued by a title insurance company
                  satisfactory to Agent, each in an amount equal to not less
                  than the fair market value of the Real Property subject to the
                  Mortgage, as reflected on Schedule "A" attached hereto,
                  insuring the Mortgagee to create a valid Lien on the Real
                  Property with no exceptions that Agent shall not have approved
                  in writing and no survey exceptions;

                  (e)      Agent shall have received environmental studies and
                  reports prepared by independent environmental engineering
                  firms with respect to the Additional Mortgaged Property in
                  form and substance satisfactory to Agent; and

                  (f)      Agent shall have received in form and substance
                  satisfactory to Lenders an amendment to the Environmental
                  Indemnification Agreement which extends the coverage of such
                  agreement to the Additional Mortgaged Property.

                                        3
<PAGE>

         3.       Conditions of Effectiveness. This Amendment shall become
effective upon satisfaction of the following conditions precedent: Agent shall
have received (i) four (4) copies of this Amendment executed by Borrower and
consented and agreed to by Guarantors, (ii) a copy of the resolutions, in form
and substance reasonably satisfactory to Agent, of the Board of Directors of
Borrower authorizing the execution, delivery and performance of this Amendment,
(iii) an executed Amended and Restated Term Note in substantially the form of
Exhibit 2.5 hereto, and (iv) such other certificates, instruments, documents,
agreements and opinions of counsel as may be required by Agent or its counsel,
each of which shall be in form and substance satisfactory to Agent and its
counsel.

         4.       Representations and Warranties. Borrower hereby represents and
warrants as follows:

                  (a)      This Amendment and the Loan Agreement, as amended
hereby, constitute legal, valid and binding obligations of Borrower and are
enforceable against Borrower in accordance with their respective terms.

                  (b)      Upon the effectiveness of this Amendment, Borrower
hereby reaffirms all covenants, representations and warranties made in the Loan
Agreement to the extent the same are not amended hereby and agrees that all such
covenants, representations and warranties shall be deemed to have been remade as
of the effective date of this Amendment.

                  (c)      No Event of Default or Default has occurred and is
continuing or would exist after giving effect to this Amendment.

                  (d)      Borrower has no defense, counterclaim or offset with
respect to the Loan Agreement.

         5.       Effect on the Loan Agreement.

                  (a)      Upon the effectiveness of Section 2 hereof, each
reference in the Loan Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or words of like import shall mean and be a reference to the Loan
Agreement as amended hereby.

                  (b)      Except as specifically amended herein, the Loan
Agreement, and all other documents, instruments and agreements executed and/or
delivered in connection therewith, shall remain in full force and effect, and
are hereby ratified and confirmed.

                  (c)      The execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of Agent
or any Lender, nor constitute a waiver of any provision of the Loan Agreement,
or any other documents, instruments or agreements executed and/or delivered
under or in connection therewith.

         6.       Governing Law. This Amendment shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns
and shall be governed by and construed in accordance with the laws of the State
of New York.

                                        4
<PAGE>

         7.       Headings. Section headings in this Amendment are included
herein for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose.

         8.       Counterparts. This Amendment may be executed by the parties
hereto in one or more counterparts, each of which shall be deemed an original
and all of which when taken together shall constitute one and the same
agreement.

                  [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]

                                        5
<PAGE>

         IN WITNESS WHEREOF, this Amendment has been duly executed as of the day
and year first written above.

                                        PERMA-FIX ENVIRONMENTAL SERVICES, INC.

                                        By:    /s/ Richard T. Kelecy
                                               ---------------------------------
                                        Name:  Richard T. Kelecy
                                        Title: Vice President

                                        PNC BANK, NATIONAL ASSOCIATION, as
                                        Agent and Lender

                                        By:    /s/ Alex M. Council
                                               ---------------------------------
                                        Name:  Alex M. Council
                                        Title: Vice President

                    [SIGNATURES CONTINUED ON FOLLOWING PAGE]

<PAGE>

CONSENTED AND AGREED TO:

SCHREIBER, YONLEY AND ASSOCIATES, INC.
PERMA-FIX TREATMENT SERVICES, INC.
PERMA-FIX OF FLORIDA, INC.
PERMA-FIX OF MEMPHIS, INC.
PERMA-FIX OF DAYTON, INC.
PERMA-FIX OF FT. LAUDERDALE, INC.
PERMA-FIX OF ORLANDO, INC.
PERMA-FIX OF SOUTH GEORGIA, INC.
PERMA-FIX OF MICHIGAN, INC.
DIVERSIFIED SCIENTIFIC SERVICES, INC.
INDUSTRIAL WASTE MANAGEMENT, INC.
EAST TENNESSEE MATERIALS & ENERGY CORPORATION
PERMA-FIX OF MARYLAND, INC.
PERMA-FIX OF PITTSBURGH, INC.

By:    /s/ Richard T. Kelecy
       ---------------------------------
Name:  Richard T. Kelecy
Title: Vice President
       of each of the foregoing entities

<PAGE>

STATE OF GEORGIA  )
                  ) ss.:
COUNTY OF FULTON  )

         On the 23rd day of June in the year 2005 before me, the undersigned,
personally appeared Richard T. Kelecy, personally known to me or proved to me on
the basis of satisfactory evidence to be the individual whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
persons upon behalf of which the individual acted, executed the instrument.

/s/ Shirley Wise
----------------------------------
Signature and Office of individual
taking acknowledgement

STATE OF GEORGIA  )
                  ) ss.:
COUNTY OF FULTON  )

         On the 23rd day of June in the year 2005 before me, the undersigned,
personally appeared Alex M. Council, personally known to me or proved to me on
the basis of satisfactory evidence to be the individual whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
persons upon behalf of which the individual acted, executed the instrument.

/s/ Shirley Wise
----------------------------------
Signature and Office of individual
taking acknowledgement

STATE OF GEORGIA  )
                  ) ss.:
COUNTY OF ________)

         On the ____ day of June in the year 2005 before me, the undersigned,
personally appeared _________________, personally known to me or proved to me on
the basis of satisfactory evidence to be the individual whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
persons upon behalf of which the individual acted, executed the instrument.

----------------------------------
Signature and Office of individual
taking acknowledgement

<PAGE>

         EXHIBITS AND SCHEDULES TO AMENDMENT NO. 5 TO REVOLVING CREDIT,
                        TERM LOAN AND SECURITY AGREEMENT

Exhibit 2.5 - Amended and Restated Term Note

Schedule A - Current Fair Market Value of all Mortgaged Property

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